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 14, insert:
1.5ELIMINATION OF FIRE STATE AID
1.6 Section 1. Minnesota Statutes 2016, section 69.011, subdivision 1, is amended to read:
1.7 Subdivision 1.
Definitions. Unless the language or context clearly indicates that a
1.8different meaning is intended, the following words and terms, for the purposes of
this chapter
1.9and chapters 423, 423A,
and 424
and 424A, have the meanings ascribed to them:
1.10 (a) "Commissioner" means the commissioner of revenue.
1.11 (b) "Municipality" means:
1.12 (1) a home rule charter or statutory city;
1.13 (2) an organized town;
1.14 (3) a park district subject to chapter 398;
1.15 (4) the University of Minnesota;
1.16 (5) for purposes of the fire state aid program only, an American Indian tribal government
1.17entity located within a federally recognized American Indian reservation;
1.18 (6) (5) for purposes of the police state aid program only, an American Indian tribal
1.19government with a tribal police department which exercises state arrest powers under
section
1.20626.90
,
626.91,
626.92, or
626.93;
1.21 (7) (6) for purposes of the police state aid program only, the Metropolitan Airports
1.22Commission; and
1.23 (8) (7) for purposes of the police state aid program only, the Department of Natural
1.24Resources and the Department of Public Safety with respect to peace officers covered
under
1.25chapter 352B.
1.26 (c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner
1.27containing space for reporting by insurers of fire, lightning, sprinkler leakage and
extended
1.28coverage premiums received upon risks located or to be performed in this state less
return
1.29premiums and dividends.
2.1 (d) "Firetown" means the area serviced by any municipality having a qualified fire
2.2department or a qualified incorporated fire department having a subsidiary volunteer
2.3firefighters' relief association.
2.4 (e) (c) "Estimated market value" means latest available estimated market value of all
2.5property in a taxing jurisdiction, whether the property is subject to taxation, or
exempt from
2.6ad valorem taxation obtained from information which appears on abstracts filed with
the
2.7commissioner of revenue or equalized by the State Board of Equalization.
2.8 (f) (d) "Minnesota Aid to Police Premium Report" means a form prescribed by the
2.9commissioner for reporting by each fire and casualty insurer of all premiums received
upon
2.10direct business received by it in this state, or by its agents for it, in cash or
otherwise, during
2.11the preceding calendar year, with reference to insurance written for insuring against
the
2.12perils contained in auto insurance coverages as reported in the Minnesota business
schedule
2.13of the annual financial statement which each insurer is required to file with the
commissioner
2.14in accordance with the governing laws or rules less return premiums and dividends.
2.15 (g) (e) "Peace officer" means any person:
2.16 (1) whose primary source of income derived from wages is from direct employment by
2.17a municipality or county as a law enforcement officer on a full-time basis of not
less than
2.1830 hours per week;
2.19 (2) who has been employed for a minimum of six months prior to December 31 preceding
2.20the date of the current year's certification under subdivision 2, paragraph (b);
2.21 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
2.22 (4) who is licensed by the Peace Officers Standards and Training Board and is authorized
2.23to arrest with a warrant; and
2.24 (5) who is a member of the State Patrol retirement plan or the public employees police
2.25and fire fund.
2.26 (h) (f) "Full-time equivalent number of peace officers providing contract service" means
2.27the integral or fractional number of peace officers which would be necessary to provide
the
2.28contract service if all peace officers providing service were employed on a full-time
basis
2.29as defined by the employing unit and the municipality receiving the contract service.
2.30 (i) "Retirement benefits other than a service pension" means any disbursement authorized
2.31under section
424A.05, subdivision 3, clauses (3) and (4).
3.1 (j) (g) For the police state aid program, "municipal clerk, municipal clerk-treasurer, or
3.2county auditor" means:
3.3(1) for the police state aid program:
3.4(i) (1) the person who was elected or appointed to the specified position or, in the absence
3.5of the person, another person who is designated by the applicable governing body;
3.6(ii) (2) in a park district, the secretary of the board of park district commissioners;
3.7(iii) (3) in the case of the University of Minnesota, the official designated by the Board
3.8of Regents;
3.9(iv) (4) for the Metropolitan Airports Commission, the person designated by the
3.10commission;
and
3.11(v) (5) for the Department of Natural Resources or the Department of Public Safety, the
3.12respective commissioner;
3.13(vi) (6) for a tribal police department which exercises state arrest powers under section
3.14626.90
,
626.91,
626.92, or
626.93, the person designated by the applicable American Indian
3.15tribal government
; and.
3.16(2) for the fire state aid program and fire relief association financial reports,
the person
3.17who was elected or appointed to the specified position, or, for governmental entities
other
3.18than counties, if the governing body of the governmental entity designates the position
to
3.19perform the function, the chief financial official of the governmental entity or the
chief
3.20administrative official of the governmental entity.
3.21(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
3.22retirement plan established by chapter 353G.
3.23 Sec. 2. Minnesota Statutes 2016, section 69.011, subdivision 2, is amended to read:
3.24 Subd. 2.
Qualification for fire or police state aid. (a) Unless retirement coverage is
3.25provided by the voluntary statewide lump-sum volunteer firefighter retirement plan,
in order
3.26to qualify to receive fire state aid, on or before March 15 annually, in conjunction
with the
3.27financial report required pursuant to section
69.051, the clerk of each municipality having
3.28a duly organized fire department as provided in subdivision 4, or the secretary of
each
3.29independent nonprofit firefighting corporation having a subsidiary incorporated firefighters'
3.30relief association, whichever is applicable, and the fire chief, shall jointly certify
the existence
3.31of the municipal fire department or of the independent nonprofit firefighting corporation,
3.32whichever is applicable, which meets the minimum qualification requirements set forth
in
4.1this subdivision, and the fire personnel and equipment of the municipal fire department
or
4.2the independent nonprofit firefighting corporation as of the preceding December 31.
4.3(b) Where retirement coverage is provided by the voluntary statewide lump-sum volunteer
4.4firefighter retirement plan, in order to qualify to receive fire state aid, on or
before March
4.515, annually, the executive director of the Public Employees Retirement Association
shall
4.6certify the existence of that coverage for each municipality and the municipal clerk
or
4.7independent nonprofit firefighting corporation secretary, whichever applies, and the
4.8applicable fire chief shall certify the fire personnel and fire department equipment
as of the
4.9preceding December 31.
4.10(c) (a) Except as provided in subdivision 2b, on or before March 15 annually, in order
4.11to qualify to receive police state aid, the clerk of each municipality and the auditor
of each
4.12county employing one or more peace officers as defined in subdivision 1, paragraph
(g),
4.13shall certify the number of such peace officers to the commissioner on forms prescribed
by
4.14the commissioner. Credit for officers employed less than a full year must be apportioned.
4.15Each full month of employment of a qualifying officer during the calendar year entitles
the
4.16employing municipality or county to credit for 1/12 of the payment for employment
of a
4.17peace officer for the entire year. For purposes of sections
69.011 to
69.051, employment of
4.18a peace officer commences when the peace officer is entered on the payroll of the
respective
4.19municipal police department or county sheriff's department. No peace officer may be
included
4.20in the certification of the number of peace officers by more than one employing unit
for the
4.21same month.
4.22(d) (b) A certification made under this subdivision must be filed with the commissioner,
4.23must be made on a form prescribed by the commissioner, and must include any other
facts
4.24that the commissioner requires.
4.25 Sec. 3. Minnesota Statutes 2016, section 69.011, subdivision 2b, is amended to read:
4.26 Subd. 2b.
Departments of Natural Resources and Public Safety. (a) On or before
4.27each March 15, the commissioner of natural resources shall certify the number of peace
4.28officers as defined in subdivision 1, clause
(g) (e), employed by the Enforcement Division
4.29and the commissioner of public safety shall certify the number of peace officers as
defined
4.30in subdivision 1, clause
(g) (e), employed by the Bureau of Criminal Apprehension, the
4.31Gambling Enforcement Division, and the State Patrol Division.
4.32(b) The certification must be on a form prescribed by the commissioner. Peace officers
4.33certified under this paragraph must be included in the total certifications under
subdivision
4.342.
5.1 Sec. 4. Minnesota Statutes 2016, section 69.011, subdivision 3, is amended to read:
5.2 Subd. 3.
Failure to file certificate deemed waiver. (a) If a certification required by this
5.3section is not filed with the commissioner by the due date prescribed by this section,
the
5.4commissioner shall notify the county
, or the municipality
, or the nonprofit firefighting
5.5corporation that a portion or all of its current year aid will be forfeited if the certification
is
5.6not received within ten days.
5.7(b) The amount of aid forfeited is equal to the amount of state police aid
or state fire aid
5.8determined for the county
, or the municipality
, or the nonprofit firefighting corporation for
5.9the current year, multiplied by five percent for each week or fraction of a week that
this
5.10certification is late. The penalty must be computed beginning ten days after the postmark
5.11date of the commissioner's notification as required under this subdivision. All forfeited
aid
5.12amounts revert to the general fund in the state treasury. Failure to receive the certificate
5.13form may not be used as a defense for a failure to file.
5.14 Sec. 5. Minnesota Statutes 2016, section 69.021, subdivision 1, is amended to read:
5.15 Subdivision 1.
Minnesota Firetown Premium Report and Minnesota Aid to Police
5.16Premium Report. The commissioner shall, at the time of mailing tax forms, send blank
5.17copies of the
Minnesota Firetown Premium Report and when applicable the Minnesota Aid
5.18to Police Premium Report to each insurer, including township and farmers mutual insurance
5.19companies licensed to write insurance as described in section
69.011, subdivision 1,
clauses
5.20(c) and (f) clause (d) in this state. These reports must contain space for the insurers name,
5.21address, gross premiums less return premiums, dividends, net premiums, certification
and
5.22other facts that the commissioner may require.
5.23 Sec. 6. Minnesota Statutes 2016, section 69.021, subdivision 2, is amended to read:
5.24 Subd. 2.
Report of premiums. (a) Each insurer, including township and farmers mutual
5.25insurers where applicable, shall return to the commissioner the
reports report described in
5.26subdivision 1 certified by its secretary and president or chief financial officer.
5.27(b) The Minnesota Firetown Premium Report must contain a true and accurate statement
5.28of the total premium for all gross direct fire, lightning, sprinkler leakage, and
extended
5.29coverage insurance of all domestic mutual insurers and the total premiums for all
gross
5.30direct fire, lightning, sprinkler leakage and extended coverage insurance of all other
insurers,
5.31less return premiums and dividends received by them on that business written or done
during
5.32the preceding calendar year upon property located within the state or brought into
the state
5.33for temporary use. The fire and extended coverage portion of multiperil and multiple
peril
6.1package premiums and all other combination premiums must be determined by applying
6.2percentages determined by the commissioner or by rating bureaus recognized by the
6.3commissioner.
6.4(c) (b) The Minnesota Aid to Police Premium Report must contain a true and accurate
6.5statement of the total premiums, less return premiums and dividends, on all direct
business
6.6received by such insurer in this state, or by its agents for it, in cash or otherwise,
during the
6.7preceding calendar year, with reference to insurance written for perils described
in section
6.869.011, subdivision 1
, clause
(f) (d).
6.9 Sec. 7. Minnesota Statutes 2016, section 69.021, subdivision 3, is amended to read:
6.10 Subd. 3.
Penalty for fraudulent, incorrect, incomplete returns and late filing of
6.11report. (a) When it appears to the commissioner that any insurer has made an incomplete
6.12or inaccurate report, the commissioner shall return the report and demand that a complete
6.13and accurate report be filed. If the insurer fails to file a report on or before March
1, annually,
6.14the insurer is liable and shall pay $25 for each seven days, or fraction thereof,
that the report
6.15is delinquent, but not to exceed $200. If the insurer fails to file a corrected report
within 30
6.16days after demand, the insurer is liable for the penalties provided in paragraph (b)
or (c) for
6.17knowingly filing an inaccurate or false report.
6.18(b) Any insurer which knowingly makes and files an inaccurate or false report is liable
6.19to a fine in an amount of not less than $25 nor more than $1,000, as determined by
the
6.20commissioner, and additionally the commissioner of commerce may revoke the insurer's
6.21certificate of authority.
6.22(c) Any person whose duty it is to make the report who fails or refuses to make it
within
6.2330 days after notification by the commissioner shall be fined an amount of not more
than
6.24$1,000.
6.25(d) Failure of the insurer to receive a reporting form does not excuse the insurer
from
6.26filing the report.
6.27 Sec. 8. Minnesota Statutes 2016, section 69.021, subdivision 4, is amended to read:
6.28 Subd. 4.
Determination of qualified state aid recipients; certification to commissioner
6.29of management and budget. (a) The commissioner shall determine which municipalities
6.30and
independent nonprofit firefighting corporations are qualified to receive fire state
aid
6.31directly or are qualified to receive the benefit of fire state aid paid to the voluntary
statewide
7.1lump-sum volunteer firefighter retirement plan and which municipalities and counties are
7.2qualified to receive police state aid.
7.3(b) The commissioner shall determine qualification for state aid upon receipt of:
7.4(1) the
fire department personnel and equipment certification or the police department
7.5and qualified peace officers certificate, whichever applies, required under section
69.011;
7.6(2) the financial compliance report required under section
6.495, subdivision 3, if
7.7applicable; and
7.8(3) any other relevant information which comes to the attention of the commissioner.
7.9(c) Upon completion of the determination, on or before October 1, the commissioner
7.10shall calculate the amount of
:(1) the police state aid which each county or municipality is
7.11to receive under subdivisions 5, 6, 7a, and 10
; and.
7.12(2) the fire state aid which each municipality or nonprofit firefighting corporation
is to
7.13receive under subdivisions 5 and 7.
7.14(d) The commissioner shall certify to the commissioner of management and budget the
7.15name of each county or municipality, and the amount of state aid which each county
or
7.16municipality is to receive, in the case of police state aid.
The commissioner shall certify to
7.17the commissioner of management and budget the name of each municipality or independent
7.18nonprofit firefighting corporation and the amount of state aid which each municipality
or
7.19independent nonprofit firefighting corporation is to receive directly or the amount
of state
7.20aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is
qualified
7.21to receive on behalf of the municipality or corporation, in the case of fire state
aid.
7.22 Sec. 9. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
7.23 Subd. 5.
Calculation of state aid. (a) The amount of fire state aid available for
7.24apportionment, before the addition of the minimum fire state aid allocation amount
under
7.25subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
state upon
7.26the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
the
7.27commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
7.28be reduced by the amount required to pay the state auditor's costs and expenses of
the audits
7.29or exams of the firefighters relief associations.
7.30The total amount for apportionment in respect to fire state aid must not be less than
two
7.31percent of the premiums reported to the commissioner by insurers on the Minnesota
Firetown
7.32Premium Report after subtracting the following amounts:
8.1(1) the amount required to pay the state auditor's costs and expenses of the audits
or
8.2exams of the firefighters relief associations; and
8.3(2) one percent of the premiums reported by town and farmers' mutual insurance
8.4companies and mutual property and casualty companies with total assets of $5,000,000
or
8.5less.
8.6(b) (a) The total amount for apportionment as police state aid is equal to 104 percent of
8.7the amount of premium taxes paid to the state on the premiums reported to the commissioner
8.8by insurers on the Minnesota Aid to Police Premium Report. The total amount for
8.9apportionment in respect to the police state aid program must not be less than two
percent
8.10of the amount of premiums reported to the commissioner by insurers on the Minnesota
Aid
8.11to Police Premium Report.
8.12(c) (b) The commissioner shall calculate the percentage of increase or decrease reflected
8.13in the apportionment over or under the previous year's available state aid using the
same
8.14premiums as a basis for comparison.
8.15(d) (c) In addition to the amount for apportionment of police state aid under paragraph
8.16(b), each year $100,000 must be apportioned for police state aid. An amount sufficient
to
8.17pay this increase is annually appropriated from the general fund.
8.18 Sec. 10. Minnesota Statutes 2016, section 69.021, subdivision 7a, is amended to read:
8.19 Subd. 7a.
Apportionment of police state aid. (a) Subject to the reduction provided for
8.20under subdivision 10, the commissioner shall apportion the police state aid to each
8.21municipality, to each county, and to the Departments of Natural Resources and Public
Safety
8.22in the following manner:
8.23(1) for all municipalities maintaining police departments, counties, the Department
of
8.24Natural Resources, and the Department of Public Safety, the police state aid must
be
8.25distributed in proportion to the relationship that the total number of peace officers,
as
8.26determined under section
69.011, subdivision 1, paragraph
(g) (e), and subdivision 2,
8.27paragraph (b), employed by that employing unit for 12 calendar months and the proportional
8.28or fractional number who were employed less than 12 months bears to the total number
of
8.29peace officers employed by all municipalities, counties, the Departments of Natural
Resources
8.30and Public Safety, subject to any reduction under subdivision 10;
8.31(2) for each municipality which contracts with the county for police service, a
8.32proportionate amount of the state aid distributed to the county based on the full-time
9.1equivalent number of peace officers providing contract service to that municipality
must
9.2be credited against the municipality's contract obligation; and
9.3(3) for each municipality which contracts with another municipality for police service,
9.4a proportionate amount of the state aid distributed to the municipality providing
contract
9.5service based on the full-time equivalent number of peace officers providing contract
service
9.6to that municipality on a full-time equivalent basis must be credited against the
contract
9.7obligation of the municipality receiving contract service.
9.8(b) Any necessary additional adjustments must be made to subsequent police state aid
9.9apportionments.
9.10 Sec. 11. Minnesota Statutes 2016, section 69.021, subdivision 9, is amended to read:
9.11 Subd. 9.
Appeal. (a) In the event that a municipality, a county,
a fire relief association,
9.12the Department of Natural Resources,
or the Department of Public Safety,
or the voluntary
9.13statewide lump-sum volunteer firefighter retirement plan, feels itself to be aggrieved, it may
9.14request the commissioner to review and adjust the apportionment of funds within the
county
9.15in the case of police state aid, or within the state in the case of fire state aid.
9.16(b) The decision of the commissioner is subject to appeal, review, and adjustment
by
9.17the district court in the county in which the applicable municipality
or fire department is
9.18located or by the Ramsey County District Court with respect to the Department of Natural
9.19Resources,
or the Department of Public Safety
, or the voluntary statewide lump-sum volunteer
9.20firefighter retirement plan.
9.21 Sec. 12. Minnesota Statutes 2016, section 69.021, subdivision 10, is amended to read:
9.22 Subd. 10.
Reduction in police state aid apportionment. (a) The commissioner of
9.23revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph
9.24(b), 6, and 7a, for eligible employer units by the amount of any excess police state
aid.
9.25(b) "Excess police state aid" is:
9.26(1) for counties and for municipalities in which police retirement coverage is provided
9.27wholly by the public employees police and fire fund and all police officers are members
of
9.28the plan governed by sections
353.63 to
353.657, the amount in excess of the employer's
9.29total prior calendar year obligation as defined in paragraph (c), as certified by
the executive
9.30director of the Public Employees Retirement Association;
10.1(2) for the Metropolitan Airports Commission, the amount in excess of the commission's
10.2total prior calendar year obligation as defined in paragraph (c), as certified by
the executive
10.3director of the Public Employees Retirement Association; and
10.4(3) for the Department of Natural Resources and for the Department of Public Safety,
10.5the amount in excess of the employer's total prior calendar year obligation under
section
10.6352B.02, subdivision 1c
, for plan members who are peace officers under section
69.011,
10.7subdivision 1
, paragraph
(g) (e), as certified by the executive director of the Minnesota State
10.8Retirement System.
10.9(c) The employer's total prior calendar year obligation with respect to the public
10.10employees police and fire plan under paragraph (b), clause (1), is the total prior
calendar
10.11year obligation under section
353.65, subdivision 3, for police officers as defined in section
10.12353.64, subdivision 2
, and the actual total prior calendar year obligation under section
10.13353.65, subdivision 3
, for firefighters, as defined in section
353.64, subdivision 3, but not
10.14to exceed for those firefighters the applicable following employer calendar year amount:
10.15
|
|
Municipality
|
Maximum Amount
|
|
10.16
|
|
Albert Lea
|
$54,157.01
|
|
10.17
|
|
Anoka
|
10,399.31
|
|
10.18
|
|
Apple Valley
|
5,442.44
|
|
10.19
|
|
Austin
|
49,864.73
|
|
10.20
|
|
Bemidji
|
27,671.38
|
|
10.21
|
|
Brooklyn Center
|
6,605.92
|
|
10.22
|
|
Brooklyn Park
|
24,002.26
|
|
10.23
|
|
Burnsville
|
15,956.00
|
|
10.24
|
|
Cloquet
|
4,260.49
|
|
10.25
|
|
Coon Rapids
|
39,920.00
|
|
10.26
|
|
Cottage Grove
|
8,588.48
|
|
10.27
|
|
Crystal
|
5,855.00
|
|
10.28
|
|
East Grand Forks
|
51,009.88
|
|
10.29
|
|
Edina
|
32,251.00
|
|
10.30
|
|
Elk River
|
5,216.55
|
|
10.31
|
|
Ely
|
13,584.16
|
|
10.32
|
|
Eveleth
|
16,288.27
|
|
10.33
|
|
Fergus Falls
|
6,742.00
|
|
10.34
|
|
Fridley
|
33,420.64
|
|
10.35
|
|
Golden Valley
|
11,744.61
|
|
10.36
|
|
Hastings
|
16,561.00
|
|
11.1
|
|
Hopkins
|
4,324.23
|
|
11.2
|
|
International Falls
|
14,400.69
|
|
11.3
|
|
Lakeville
|
782.35
|
|
11.4
|
|
Lino Lakes
|
5,324.00
|
|
11.5
|
|
Little Falls
|
7,889.41
|
|
11.6
|
|
Maple Grove
|
6,707.54
|
|
11.7
|
|
Maplewood
|
8,476.69
|
|
11.8
|
|
Minnetonka
|
10,403.00
|
|
11.9
|
|
Montevideo
|
1,307.66
|
|
11.10
|
|
Moorhead
|
68,069.26
|
|
11.11
|
|
New Hope
|
6,739.72
|
|
11.12
|
|
North St. Paul
|
4,241.14
|
|
11.13
|
|
Northfield
|
770.63
|
|
11.14
|
|
Owatonna
|
37,292.67
|
|
11.15
|
|
Plymouth
|
6,754.71
|
|
11.16
|
|
Red Wing
|
3,504.01
|
|
11.17
|
|
Richfield
|
53,757.96
|
|
11.18
|
|
Rosemount
|
1,712.55
|
|
11.19
|
|
Roseville
|
9,854.51
|
|
11.20
|
|
St. Anthony
|
33,055.00
|
|
11.21
|
|
St. Louis Park
|
53,643.11
|
|
11.22
|
|
Thief River Falls
|
28,365.04
|
|
11.23
|
|
Virginia
|
31,164.46
|
|
11.24
|
|
Waseca
|
11,135.17
|
|
11.25
|
|
West St. Paul
|
15,707.20
|
|
11.26
|
|
White Bear Lake
|
6,521.04
|
|
11.27
|
|
Woodbury
|
3,613.00
|
|
11.28
|
|
any other municipality
|
0.00
|
|
11.29(d) The total amount of excess police state aid must be deposited in the excess police
11.30state-aid account in the general fund, administered and distributed as provided in
subdivision
11.3111.
11.32 Sec. 13. Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
11.33 Subdivision 1.
Commissioner's warrant. (a) The commissioner of management and
11.34budget shall issue to the
Public Employees Retirement Association on behalf of a
11.35municipality or independent nonprofit firefighting corporation that is a member of
the
11.36voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G,
to
12.1the Department of Natural Resources, the Department of Public Safety, or the county,
or
12.2municipality
, or independent nonprofit firefighting corporation certified to the commissioner
12.3of management and budget by the commissioner a warrant for an amount equal to the
amount
12.4of
fire state aid or police state aid
, whichever applies, certified for the applicable state aid
12.5recipient by the commissioner under section
69.021.
12.6(b)
Fire state aid and Police state aid is payable on October 1 annually. The amount of
12.7state aid due and not paid by October 1 accrues interest payable to the state aid
recipient at
12.8the rate of one percent for each month or part of a month that the amount remains
unpaid
12.9after October 1.
12.10 Sec. 14. Minnesota Statutes 2016, section 69.031, subdivision 3, is amended to read:
12.11 Subd. 3.
Appropriations. There is hereby appropriated annually from the state general
12.12fund to the commissioner of revenue amounts sufficient to make the police state aid
payments
12.13and the fire state aid payments specified in this section and section
69.021.
12.14 Sec. 15. Minnesota Statutes 2016, section 69.031, subdivision 5, is amended to read:
12.15 Subd. 5.
Deposit of state aid. (a) If the municipality or the independent nonprofit
12.16firefighting corporation is covered by the voluntary statewide lump-sum volunteer
firefighter
12.17retirement plan under chapter 353G, the executive director shall credit the fire state
aid
12.18against future municipal contribution requirements under section
353G.08 and shall notify
12.19the municipality or independent nonprofit firefighting corporation of the fire state
aid so
12.20credited at least annually. If the municipality or the independent nonprofit firefighting
12.21corporation is not covered by the voluntary statewide lump-sum volunteer firefighter
12.22retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit
the fire
12.23state aid to the treasurer of the duly incorporated firefighters' relief association
if there is
12.24one organized and the association has filed a financial report with the municipality.
If the
12.25relief association has not filed a financial report with the municipality, the municipal
treasurer
12.26shall delay transmission of the fire state aid to the relief association until the
complete
12.27financial report is filed. If the municipality or independent nonprofit firefighting
corporation
12.28is not covered by the voluntary statewide lump-sum volunteer firefighter retirement
plan,
12.29if there is no relief association organized, or if the association has dissolved or
has been
12.30removed as trustees of state aid, then the treasurer of the municipality shall deposit
the
12.31money in the municipal treasury and the money may be disbursed only for the purposes
and
12.32in the manner set forth in section
424A.08 or for the payment of the employer contribution
13.1requirement with respect to firefighters covered by the public employees police and
fire
13.2retirement plan under section
353.65, subdivision 3.
13.3(b) (a) For a municipality in which police retirement coverage is provided by the public
13.4employees police and fire fund and all peace officers are members of the fund, including
13.5municipalities covered by section
353.665, the total state aid must be applied toward the
13.6municipality's employer contribution to the public employees police and fire fund
under
13.7sections
353.65, subdivision 3, and
353.665, subdivision 8.
13.8(c) (b) The county treasurer, upon receipt of the police state aid for the county, shall
13.9apply the total state aid toward the county's employer contribution to the public
employees
13.10police and fire fund under section
353.65, subdivision 3.
13.11(d) (c) The designated Metropolitan Airports Commission official, upon receipt of the
13.12police state aid for the Metropolitan Airports Commission, shall apply the total police
state
13.13aid toward the commission's employer contribution for police officers to the public
employees
13.14police and fire plan under section
353.65, subdivision 3.
13.15(e) (d) The police state aid apportioned to the Departments of Public Safety and Natural
13.16Resources under section
69.021, subdivision 7a, is appropriated to the commissioner of
13.17management and budget for transfer to the funds and accounts from which the salaries
of
13.18peace officers certified under section
69.011, subdivision 2b, are paid. The commissioner
13.19of revenue shall certify to the commissioners of public safety, natural resources,
and
13.20management and budget the amounts to be transferred from the appropriation for police
13.21state aid. The commissioners of public safety and natural resources shall certify
to the
13.22commissioner of management and budget the amounts to be credited to each of the funds
13.23and accounts from which the peace officers employed by their respective departments
are
13.24paid. Each commissioner shall allocate the police state aid first for employer contributions
13.25for employees funded from the general fund and then for employer contributions for
13.26employees funded from other funds. For peace officers whose salaries are paid from
the
13.27general fund, the amounts transferred from the appropriation for police state aid
must be
13.28canceled to the general fund.
13.29 Sec. 16. Minnesota Statutes 2016, section 69.041, is amended to read:
13.3069.041 SHORTFALL FROM GENERAL FUND.
13.31(a) If the annual funding requirements of
fire or police relief associations
or consolidation
13.32accounts under sections
424A.091 to
424A.095, or Laws 2013, chapter 111, article 5, sections
13.3331 to 42, exceed all applicable revenue sources of a given year, including the insurance
14.1premium taxes funding the
applicable fire or police state aid as set under section
297I.05,
14.2subdivisions 2, 3, and 4
, the shortfall in the annual funding requirements must be paid from
14.3the general fund to the extent appropriated by the legislature.
14.4(b) Nothing in this section may be deemed to relieve any municipality from its obligation
14.5to a relief association or consolidation account under law.
14.6 Sec. 17. Minnesota Statutes 2016, section 273.18, is amended to read:
14.7273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
14.8BY COUNTY AUDITORS.
14.9(a) In every sixth year after the year 2010, the county auditor shall enter the description
14.10of each tract of real property exempt by law from taxation, with the name of the owner,
and
14.11the assessor shall value and assess the same in the same manner that other real property
is
14.12valued and assessed, and shall designate in each case the purpose for which the property
is
14.13used.
14.14(b)
For purposes of the apportionment of fire state aid under section
69.021, subdivision
14.157
, The county auditor shall include on the abstract of assessment of exempt real property
14.16filed under this section, the total number of acres of all natural resources lands
for which
14.17in lieu payments are made under sections
477A.11 to
477A.14. The assessor shall estimate
14.18its market value, provided that if the assessor is not able to estimate the market
value of the
14.19land on a per parcel basis, the assessor shall furnish the commissioner of revenue
with an
14.20estimate of the average value per acre of this land within the county.
14.21 Sec. 18. Minnesota Statutes 2016, section 353G.08, subdivision 1, is amended to read:
14.22 Subdivision 1.
Annual funding requirements; lump-sum retirement division. (a)
14.23Annually, the executive director shall determine the funding requirements of each
account
14.24in the lump-sum retirement division of the voluntary statewide volunteer firefighter
retirement
14.25plan on or before August 1. The funding requirements computed under this subdivision
14.26must be determined using a mathematical procedure developed and certified as accurate
by
14.27the approved actuary retained by the Public Employees Retirement Association and must
14.28be based on present value factors using a six percent interest rate, without any decrement
14.29assumptions. The funding requirements must be certified to the entity or entities
associated
14.30with the fire department whose active firefighters are covered by the retirement plan.
14.31(b) The overall funding balance of each lump-sum account for the current calendar
year
14.32must be determined in the following manner:
15.1(1) The total accrued liability for all active and deferred members of the account
as of
15.2December 31 of the current year must be calculated based on the good time service
credit
15.3of active and deferred members as of that date.
15.4(2) The total present assets of the account projected to December 31 of the current
year,
15.5including receipts by and disbursements from the account anticipated to occur on or
before
15.6December 31, must be calculated. To the extent possible, the market value of assets
must
15.7be utilized in making this calculation.
15.8(3) The amount of the total present assets calculated under clause (2) must be subtracted
15.9from the amount of the total accrued liability calculated under clause (1). If the
amount of
15.10total present assets exceeds the amount of the total accrued liability, then the account
is
15.11considered to have a surplus over full funding. If the amount of the total present
assets is
15.12less than the amount of the total accrued liability, then the account is considered
to have a
15.13deficit from full funding. If the amount of total present assets is equal to the amount
of the
15.14total accrued liability, then the special fund is considered to be fully funded.
15.15(c) The financial requirements of each lump-sum account for the following calendar
15.16year must be determined in the following manner:
15.17(1) The total accrued liability for all active and deferred members of the account
as of
15.18December 31 of the calendar year next following the current calendar year must be
calculated
15.19based on the good time service used in the calculation under paragraph (b), clause
(1),
15.20increased by one year.
15.21(2) The increase in the total accrued liability of the account for the following calendar
15.22year over the total accrued liability of the account for the current year must be
calculated.
15.23(3) The amount of administrative expenses of the account must be calculated by
15.24multiplying the per-person dollar amount of the administrative expenses for the most
recent
15.25prior calendar year by the number of active and deferred firefighters reported to
PERA on
15.26the most recent good time service credit certification form for each account.
15.27(4) If the account is fully funded, the financial requirement of the account for the
15.28following calendar year is the total of the amounts calculated under clauses (2) and
(3).
15.29(5) If the account has a deficit from full funding, the financial requirement of the
account
15.30for the following calendar year is the total of the amounts calculated under clauses
(2) and
15.31(3) plus an amount equal to one-tenth of the amount of the deficit from full funding
of the
15.32account.
16.1(6) If the account has a surplus over full funding, the financial requirement of the
account
16.2for the following calendar year is the financial requirement of the account calculated
as
16.3though the account was fully funded under clause (4) and, if the account has also
had a
16.4surplus over full funding during the prior two years, additionally reduced by an amount
16.5equal to one-tenth of the amount of the surplus over full funding of the account.
16.6(d) The required contribution of the entity or entities associated with the fire department
16.7whose active firefighters are covered by the lump-sum retirement division is the annual
16.8financial requirements of the lump-sum account of the retirement plan under paragraph
(c)
16.9reduced by
the amount of any fire state aid payable under sections
69.011 to
69.051 or
16.10police and firefighter retirement supplemental state aid payable under section
423A.022
16.11that is reasonably anticipated to be received by the retirement plan attributable
to the entity
16.12or entities during the following calendar year, and an amount of interest on the assets
16.13projected to be received during the following calendar year calculated at the rate
of six
16.14percent per annum. The required contribution must be allocated between the entities
if more
16.15than one entity is involved.
A reasonable amount of anticipated fire state aid is an amount
16.16that does not exceed the fire state aid actually received in the prior year multiplied
by the
16.17factor 1.035.
16.18(e) The required contribution calculated in paragraph (d) must be paid to the retirement
16.19plan on or before December 31 of the year for which it was calculated. If the contribution
16.20is not received by the retirement plan by December 31, it is payable with interest
at an
16.21annual compound rate of six percent from the date due until the date payment is received
16.22by the retirement plan. If the entity does not pay the full amount of the required
contribution,
16.23the executive director shall collect the unpaid amount under section
353.28, subdivision 6.
16.24 Sec. 19. Minnesota Statutes 2016, section 353G.08, subdivision 1a, is amended to read:
16.25 Subd. 1a.
Annual funding requirements; monthly benefit retirement division. (a)
16.26Annually, the executive director shall determine the funding requirements of each
monthly
16.27benefit account in the voluntary statewide volunteer firefighter retirement plan on
or before
16.28August 1.
16.29(b) The executive director must determine the funding requirements of a monthly benefit
16.30account under this subdivision from:
16.31(1) the most recent actuarial valuation normal cost, administrative expense, including
16.32the cost of a regular actuarial valuation, and amortization results for the account
determined
16.33by the approved actuary retained by the retirement association under sections
356.215 and
16.34356.216
; and
17.1(2) the standards for actuarial work, utilizing a six percent interest rate actuarial
17.2assumption and other actuarial assumptions approved under section
356.215, subdivision
17.318:
17.4(i) with that portion of any unfunded actuarial accrued liability attributable to
a benefit
17.5increase to be amortized over a period of 20 years from the date of the benefit change;
17.6(ii) with that portion of any unfunded actuarial accrued liability attributable to
an
17.7assumption change or an actuarial method change to be amortized over a period of 20
years
17.8from the date of the assumption or method change;
17.9(iii) with that portion of any unfunded actuarial accrued liability attributable to
an
17.10investment loss to be amortized over a period of ten years from the date of investment
loss;
17.11and
17.12(iv) with the balance of any net unfunded actuarial accrued liability to be amortized
over
17.13a period of five years from the date of the actuarial valuation.
17.14(c) The required contributions of the entity or entities associated with the fire
department
17.15whose active firefighters are covered by the monthly benefit retirement division are
the
17.16annual financial requirements of the monthly benefit account of the retirement plan
under
17.17paragraph (b)
reduced by the amount of any fire state aid payable under sections
69.011 to
17.1869.051
, or any police and firefighter retirement supplemental state aid payable under section
17.19423A.022
, that is reasonably anticipated to be received by the retirement plan attributable
17.20to the entity or entities during the following calendar year. The required contribution must
17.21be allocated between the entities if more than one entity is involved.
A reasonable amount
17.22of anticipated fire state aid is an amount that does not exceed the fire state aid
actually
17.23received in the prior year multiplied by the factor 1.035.
17.24(d) The required contribution calculated in paragraph (c) must be paid to the retirement
17.25plan on or before December 31 of the year for which it was calculated. If the contribution
17.26is not received by the retirement plan by December 31, it is payable with interest
at an
17.27annual compound rate of six percent from the date due until the date payment is received
17.28by the retirement plan. If the entity does not pay the full amount of the required
contribution,
17.29the executive director shall collect the unpaid amount under section
353.28, subdivision 6.
17.30 Sec. 20. Minnesota Statutes 2016, section 423A.02, subdivision 1b, is amended to read:
17.31 Subd. 1b.
Additional amortization state aid. (a) Annually, the commissioner shall
17.32allocate the additional amortization state aid, if any, including any state aid in
excess of the
17.33limitation in subdivision 4, on the following basis:
18.1 (1)
47.1 55.7 percent to the city of Minneapolis to defray the employer costs associated
18.2with police and firefighter retirement coverage;
18.3(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer
18.4firefighter relief associations under section
69.021, subdivision 7, paragraph (d);
18.5(3) 12.9 (2) 21.5 percent to the city of Duluth to defray employer costs associated with
18.6police and firefighter retirement coverage;
18.7(4) 12.9 (3) 21.5 percent to the St. Paul Teachers Retirement Fund Association if the
18.8investment performance requirement of paragraph (c) is met; and
18.9 (5) (4) 1.3 percent to the city of Virginia to defray the employer contribution under
18.10section
353.665, subdivision 8, paragraph (d).
18.11 If there is no additional employer contribution under section
353.665, subdivision 8,
18.12paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect
to the
18.13former Minneapolis Police Relief Association and the former Minneapolis Fire Department
18.14Relief Association, the commissioner shall allocate that 47.1 percent of the aid
as follows:
18.1549 percent to evenly between the Teachers Retirement Association
, 21 percent to and the
18.16St. Paul Teachers Retirement Fund Association
, and 30 percent as additional funding to
18.17support minimum fire state aid for volunteer firefighter relief associations under
section
18.1869.021, subdivision 7
, paragraph (d). If there is no employer contribution by the city of
18.19Virginia under section
353.665, subdivision 8, paragraph (d), for the former Virginia Fire
18.20Department Relief Association certified on or before June 30 by the executive director
of
18.21the Public Employees Retirement Association, the commissioner shall allocate that
1.3
18.22percent of the aid
as follows: 49 percent to evenly between the Teachers Retirement
18.23Association
, 21 percent to and the St. Paul Teachers Retirement Fund Association
, and 30
18.24percent as additional funding to support minimum fire state aid for volunteer firefighter
18.25relief associations under section
69.021, subdivision 7, paragraph (d).
18.26 (b) The allocation must be made by the commissioner of revenue on October 1 annually.
18.27 (c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if
the
18.28teacher's association five-year average time-weighted rate of investment return does
not
18.29equal or exceed the performance of a composite portfolio assumed passively managed
18.30(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar
debt
18.31securities, and 30 percent in domestic stock calculated using the formula under section
18.3211A.04
, clause (11), the aid allocation to the retirement fund under this section ceases
until
18.33the five-year annual rate of investment return equals or exceeds the performance of
that
18.34composite portfolio.
19.1 (d) The amounts required under this subdivision are the amounts annually appropriated
19.2to the commissioner of revenue under section
69.021, subdivision 11, paragraph (d), if any,
19.3and the aid amounts in excess of the limitation in subdivision 4.
19.4 Sec. 21. Minnesota Statutes 2016, section 423A.022, subdivision 2, is amended to read:
19.5 Subd. 2.
Allocation. (a) Of the total amount appropriated as supplemental state aid:
19.6 (1)
58.064 75.806 percent must be paid to the executive director of the Public Employees
19.7Retirement Association for deposit in the public employees police and fire retirement
fund
19.8established by section
353.65, subdivision 1;
19.9 (2) 35.484 percent must be paid to municipalities other than municipalities solely
19.10employing firefighters with retirement coverage provided by the public employees police
19.11and fire retirement plan which qualified to receive fire state aid in that calendar
year, allocated
19.12in proportion to the most recent amount of fire state aid paid under section
69.021,
19.13subdivision 7
, for the municipality bears to the most recent total fire state aid for all
19.14municipalities other than the municipalities solely employing firefighters with retirement
19.15coverage provided by the public employees police and fire retirement plan paid under
section
19.1669.021, subdivision 7
, with the allocated amount for fire departments participating in the
19.17voluntary statewide lump-sum volunteer firefighter retirement plan paid to the executive
19.18director of the Public Employees Retirement Association for deposit in the fund established
19.19by section
353G.02, subdivision 3, and credited to the respective account and with the
19.20balance paid to the treasurer of each municipality for transmittal within 30 days
of receipt
19.21to the treasurer of the applicable volunteer firefighter relief association for deposit
in its
19.22special fund; and
19.23 (3) 6.452 (2) 24.194 percent must be paid to the executive director of the Minnesota
19.24State Retirement System for deposit in the state patrol retirement fund.
19.25(b) For purposes of this section, the term "municipalities" includes independent nonprofit
19.26firefighting corporations that participate in the voluntary statewide lump-sum volunteer
19.27firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter
relief
19.28associations operating under chapter 424A.
19.29 Sec. 22. Minnesota Statutes 2016, section 423A.022, subdivision 3, is amended to read:
19.30 Subd. 3.
Reporting. On or before September 1, annually, the executive director of the
19.31Public Employees Retirement Association shall report to the commissioner of revenue
the
19.32following:
20.1 (1) the municipalities which employ firefighters with retirement coverage by the public
20.2employees police and fire retirement plan;
and
20.3 (2) the fire departments covered by the voluntary statewide lump-sum volunteer firefighter
20.4retirement plan; and
20.5 (3) (2) any other information requested by the commissioner to administer the police
20.6and firefighter retirement supplemental state aid program.
20.7 Sec. 23. Minnesota Statutes 2016, section 423A.022, subdivision 4, is amended to read:
20.8 Subd. 4.
Payments; conditions prerequisite. (a) The payments under this section must
20.9be made on October 1 each year, with interest at one percent for each month, or portion
of
20.10a month, that the amount remains unpaid after October 1. Any necessary adjustments
must
20.11be made to subsequent payments.
20.12 (b) The provisions of sections
69.011 to
69.051 that prevent municipalities and relief
20.13associations from being eligible for, or receiving fire state aid under sections
69.011 to
20.1469.051
until the applicable financial reporting requirements have been complied with, apply
20.15to the amounts payable to municipalities and relief associations under this section.
20.16 Sec. 24. Minnesota Statutes 2016, section 424A.016, subdivision 2, is amended to read:
20.17 Subd. 2.
Defined contribution service pension eligibility. (a) A relief association,
20.18when its articles of incorporation or bylaws so provide, may pay out of the assets
of its
20.19special fund a defined contribution service pension to each of its members who:
20.20(1) separates from active service with the fire department;
20.21(2) reaches age 50;
20.22(3) completes at least five years of active service as an active member of the municipal
20.23fire department to which the relief association is associated;
20.24(4) completes at least five years of active membership with the relief association
before
20.25separation from active service; and
20.26(5) complies with any additional conditions as to age, service, and membership that
are
20.27prescribed by the bylaws of the relief association.
20.28(b) In the case of a member who has completed at least five years of active service
as
20.29an active member of the fire department to which the relief association is associated
on the
20.30date that the relief association is established and incorporated, the requirement
that the
20.31member complete at least five years of active membership with the relief association
before
21.1separation from active service may be waived by the board of trustees of the relief
association
21.2if the member completes at least five years of inactive membership with the relief
association
21.3before the date of the payment of the service pension. During the period of inactive
21.4membership, the member is not entitled to receive any disability benefit coverage,
is not
21.5entitled to receive additional individual account allocation of
fire state aid or municipal
21.6contribution towards a service pension, and is considered to have the status of a
person
21.7entitled to a deferred service pension.
21.8(c) The service pension earned by a volunteer under this chapter and the articles
of
21.9incorporation and bylaws of the relief association may be paid whether or not the
municipality
21.10or nonprofit firefighting corporation to which the relief association is associated
qualifies
21.11for the receipt of fire state aid under chapter 69.
21.12 Sec. 25. Minnesota Statutes 2016, section 424A.016, subdivision 4, is amended to read:
21.13 Subd. 4.
Individual accounts. (a) An individual account must be established for each
21.14firefighter who is a member of the relief association.
21.15(b) To each individual active member account must be credited an equal share of:
21.16(1) any amounts of fire state aid and police and firefighter retirement supplemental
state
21.17aid received by the relief association;
21.18(2) (1) any amounts of municipal contributions to the relief association raised from levies
21.19on real estate or from other available municipal revenue sources
exclusive of fire state aid;
21.20and
21.21(3) (2) any amounts equal to the share of the assets of the special fund to the credit of:
21.22(i) any former member who terminated active service with the fire department to which
21.23the relief association is associated before meeting the minimum service requirement
provided
21.24for in subdivision 2, paragraph (b), and has not returned to active service with the
fire
21.25department for a period no shorter than five years; or
21.26(ii) any retired member who retired before obtaining a full nonforfeitable interest
in the
21.27amounts credited to the individual member account under subdivision 2, paragraph (b),
and
21.28any applicable provision of the bylaws of the relief association. In addition, any
investment
21.29return on the assets of the special fund must be credited in proportion to the share
of the
21.30assets of the special fund to the credit of each individual active member account.
21.31Administrative expenses of the relief association payable from the special fund may
be
21.32deducted from individual accounts in a manner specified in the bylaws of the relief
21.33association.
22.1(c) If the bylaws so permit and as the bylaws define, the relief association may credit
22.2any investment return on the assets of the special fund to the accounts of inactive
members.
22.3(d) Amounts to be credited to individual accounts must be allocated uniformly for
all
22.4years of active service and allocations must be made for all years of service, except
for caps
22.5on service credit if so provided in the bylaws of the relief association. Amounts
forfeited
22.6under paragraph (b), clause (3), before a resumption of active service and membership
under
22.7section
424A.01, subdivision 6, remain forfeited and may not be reinstated upon the
22.8resumption of active service and membership. The allocation method may utilize monthly
22.9proration for fractional years of service, as the bylaws or articles of incorporation
of the
22.10relief association so provide. The bylaws or articles of incorporation may define
a "month,"
22.11but the definition must require a calendar month to have at least 16 days of active
service.
22.12If the bylaws or articles of incorporation do not define a "month," a "month" is a
completed
22.13calendar month of active service measured from the member's date of entry to the same
date
22.14in the subsequent month.
22.15(e) At the time of retirement under subdivision 2 and any applicable provision of
the
22.16bylaws of the relief association, a retiring member is entitled to that portion of
the assets of
22.17the special fund to the credit of the member in the individual member account which
is
22.18nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the
relief
22.19association based on the number of years of service to the credit of the retiring
member.
22.20(f) Annually, the secretary of the relief association shall certify the individual
account
22.21allocations to the state auditor at the same time that the annual financial statement
or financial
22.22report and audit of the relief association, whichever applies, is due under section
69.051.
22.23 Sec. 26. Minnesota Statutes 2016, section 424A.016, subdivision 8, is amended to read:
22.24 Subd. 8.
Filing of bylaw amendments. Each relief association to which this section
22.25applies must file a revised copy of its governing bylaws with the state auditor upon
the
22.26adoption of any amendment to its governing bylaws by the relief association.
Failure of the
22.27relief association to file a copy of the bylaws or any bylaw amendments with the state
auditor
22.28disqualifies the municipality from the distribution of any future fire state aid until
this filing
22.29requirement has been completed.
22.30 Sec. 27. Minnesota Statutes 2016, section 424A.02, subdivision 1, is amended to read:
22.31 Subdivision 1.
Authorization. (a) A defined benefit relief association, when its articles
22.32of incorporation or bylaws so provide, may pay out of the assets of its special fund
a defined
22.33benefit service pension to each of its members who: (1) separates from active service
with
23.1the fire department; (2) reaches age 50; (3) completes at least five years of active
service
23.2as an active member of the municipal fire department to which the relief association
is
23.3associated; (4) completes at least five years of active membership with the relief
association
23.4before separation from active service; and (5) complies with any additional conditions
as
23.5to age, service, and membership that are prescribed by the bylaws of the relief association.
23.6A service pension computed under this section may be prorated monthly for fractional
years
23.7of service as the bylaws or articles of incorporation of the relief association so
provide. The
23.8bylaws or articles of incorporation may define a "month," but the definition must
require a
23.9calendar month to have at least 16 days of active service. If the bylaws or articles
of
23.10incorporation do not define a "month," a "month" is a completed calendar month of
active
23.11service measured from the member's date of entry to the same date in the subsequent
month.
23.12The service pension earned by a volunteer firefighter under this chapter and the articles
of
23.13incorporation and bylaws of the volunteer firefighters relief association may be paid
whether
23.14or not the municipality or nonprofit firefighting corporation to which the relief
association
23.15is associated qualifies for the receipt of fire state aid under chapter 69.
23.16(b) In the case of a member who has completed at least five years of active service
as
23.17an active member of the fire department to which the relief association is associated
on the
23.18date that the relief association is established and incorporated, the requirement
that the
23.19member complete at least five years of active membership with the relief association
before
23.20separation from active service may be waived by the board of trustees of the relief
association
23.21if the member completes at least five years of inactive membership with the relief
association
23.22before the date of the payment of the service pension. During the period of inactive
23.23membership, the member is not entitled to receive disability benefit coverage, is
not entitled
23.24to receive additional service credit towards computation of a service pension, and
is
23.25considered to have the status of a person entitled to a deferred service pension under
23.26subdivision 7.
23.27(c) No municipality or nonprofit firefighting corporation may delegate the power to
take
23.28final action in setting a service pension or ancillary benefit amount or level to
the board of
23.29trustees of the relief association or to approve in advance a service pension or ancillary
23.30benefit amount or level equal to the maximum amount or level that this chapter would
allow
23.31rather than a specific dollar amount or level.
23.32 Sec. 28. Minnesota Statutes 2016, section 424A.02, subdivision 3, is amended to read:
23.33 Subd. 3.
Flexible service pension maximums. (a) Annually on or before August 1 as
23.34part of the certification of the financial requirements and minimum municipal obligation
24.1determined under section
424A.092, subdivision 4, or
424A.093, subdivision 5, as applicable,
24.2the secretary or some other official of the relief association designated in the bylaws
of each
24.3defined benefit relief association shall calculate and certify to the governing body
of the
24.4applicable municipality the average amount of available financing per active covered
24.5firefighter for the most recent three-year period. The amount of available financing
includes
24.6any amounts of
fire state aid and police and firefighter retirement supplemental state aid
24.7received or receivable by the relief association, any amounts of municipal contributions
to
24.8the relief association raised from levies on real estate or from other available revenue
sources
24.9exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued
24.10liabilities of the relief association calculated under section
424A.092, subdivision 2;
24.11424A.093, subdivisions 2
and 4; or
424A.094, subdivision 2, if any.
24.12 (b) The maximum service pension which the defined benefit relief association has
24.13authority to provide for in its bylaws for payment to a member retiring after the
calculation
24.14date when the minimum age and service requirements specified in subdivision 1 are
met
24.15must be determined using the table in paragraph (c) or (d), whichever applies.
24.16 (c) For a defined benefit relief association where the governing bylaws provide for
a
24.17monthly service pension to a retiring member, the maximum monthly service pension
amount
24.18per month for each year of service credited that may be provided for in the bylaws
is the
24.19greater of the service pension amount provided for in the bylaws on the date of the
calculation
24.20of the average amount of the available financing per active covered firefighter or
the
24.21maximum service pension figure corresponding to the average amount of available financing
24.22per active covered firefighter:
24.23
24.24
24.25
|
Minimum Average Amount of Available
Financing per Firefighter
|
Maximum Service Pension Amount
Payable per Month for Each Year of
Service
|
24.26
|
$ ...
|
|
$ .25
|
|
24.27
|
41
|
|
.50
|
|
24.28
|
81
|
|
1.00
|
|
24.29
|
122
|
|
1.50
|
|
24.30
|
162
|
|
2.00
|
|
24.31
|
203
|
|
2.50
|
|
24.32
|
243
|
|
3.00
|
|
24.33
|
284
|
|
3.50
|
|
24.34
|
324
|
|
4.00
|
|
24.35
|
365
|
|
4.50
|
|
24.36
|
405
|
|
5.00
|
|
24.37
|
486
|
|
6.00
|
|
25.1
|
567
|
|
7.00
|
|
25.2
|
648
|
|
8.00
|
|
25.3
|
729
|
|
9.00
|
|
25.4
|
810
|
|
10.00
|
|
25.5
|
891
|
|
11.00
|
|
25.6
|
972
|
|
12.00
|
|
25.7
|
1053
|
|
13.00
|
|
25.8
|
1134
|
|
14.00
|
|
25.9
|
1215
|
|
15.00
|
|
25.10
|
1296
|
|
16.00
|
|
25.11
|
1377
|
|
17.00
|
|
25.12
|
1458
|
|
18.00
|
|
25.13
|
1539
|
|
19.00
|
|
25.14
|
1620
|
|
20.00
|
|
25.15
|
1701
|
|
21.00
|
|
25.16
|
1782
|
|
22.00
|
|
25.17
|
1823
|
|
22.50
|
|
25.18
|
1863
|
|
23.00
|
|
25.19
|
1944
|
|
24.00
|
|
25.20
|
2025
|
|
25.00
|
|
25.21
|
2106
|
|
26.00
|
|
25.22
|
2187
|
|
27.00
|
|
25.23
|
2268
|
|
28.00
|
|
25.24
|
2349
|
|
29.00
|
|
25.25
|
2430
|
|
30.00
|
|
25.26
|
2511
|
|
31.00
|
|
25.27
|
2592
|
|
32.00
|
|
25.28
|
2673
|
|
33.00
|
|
25.29
|
2754
|
|
34.00
|
|
25.30
|
2834
|
|
35.00
|
|
25.31
|
2916
|
|
36.00
|
|
25.32
|
2997
|
|
37.00
|
|
25.33
|
3078
|
|
38.00
|
|
25.34
|
3159
|
|
39.00
|
|
25.35
|
3240
|
|
40.00
|
|
25.36
|
3321
|
|
41.00
|
|
25.37
|
3402
|
|
42.00
|
|
25.38
|
3483
|
|
43.00
|
|
26.1
|
3564
|
|
44.00
|
|
26.2
|
3645
|
|
45.00
|
|
26.3
|
3726
|
|
46.00
|
|
26.4
|
3807
|
|
47.00
|
|
26.5
|
3888
|
|
48.00
|
|
26.6
|
3969
|
|
49.00
|
|
26.7
|
4050
|
|
50.00
|
|
26.8
|
4131
|
|
51.00
|
|
26.9
|
4212
|
|
52.00
|
|
26.10
|
4293
|
|
53.00
|
|
26.11
|
4374
|
|
54.00
|
|
26.12
|
4455
|
|
55.00
|
|
26.13
|
4536
|
|
56.00
|
|
26.14
|
4617
|
|
57.00
|
|
26.15
|
4698
|
|
58.00
|
|
26.16
|
4779
|
|
59.00
|
|
26.17
|
4860
|
|
60.00
|
|
26.18
|
4941
|
|
61.00
|
|
26.19
|
5022
|
|
62.00
|
|
26.20
|
5103
|
|
63.00
|
|
26.21
|
5184
|
|
64.00
|
|
26.22
|
5265
|
|
65.00
|
|
26.23
|
5346
|
|
66.00
|
|
26.24
|
5427
|
|
67.00
|
|
26.25
|
5508
|
|
68.00
|
|
26.26
|
5589
|
|
69.00
|
|
26.27
|
5670
|
|
70.00
|
|
26.28
|
5751
|
|
71.00
|
|
26.29
|
5832
|
|
72.00
|
|
26.30
|
5913
|
|
73.00
|
|
26.31
|
5994
|
|
74.00
|
|
26.32
|
6075
|
|
75.00
|
|
26.33
|
6156
|
|
76.00
|
|
26.34
|
6237
|
|
77.00
|
|
26.35
|
6318
|
|
78.00
|
|
26.36
|
6399
|
|
79.00
|
|
26.37
|
6480
|
|
80.00
|
|
26.38
|
6561
|
|
81.00
|
|
27.1
|
6642
|
|
82.00
|
|
27.2
|
6723
|
|
83.00
|
|
27.3
|
6804
|
|
84.00
|
|
27.4
|
6885
|
|
85.00
|
|
27.5
|
6966
|
|
86.00
|
|
27.6
|
7047
|
|
87.00
|
|
27.7
|
7128
|
|
88.00
|
|
27.8
|
7209
|
|
89.00
|
|
27.9
|
7290
|
|
90.00
|
|
27.10
|
7371
|
|
91.00
|
|
27.11
|
7452
|
|
92.00
|
|
27.12
|
7533
|
|
93.00
|
|
27.13
|
7614
|
|
94.00
|
|
27.14
|
7695
|
|
95.00
|
|
27.15
|
7776
|
|
96.00
|
|
27.16
|
7857
|
|
97.00
|
|
27.17
|
7938
|
|
98.00
|
|
27.18
|
8019
|
|
99.00
|
|
27.19
|
8100
|
|
100.00
|
|
27.20
|
any amount in excess of
|
|
|
|
27.21
|
8100
|
|
100.00
|
|
27.22 (d) For a defined benefit relief association in which the governing bylaws provide
for a
27.23lump-sum service pension to a retiring member, the maximum lump-sum service pension
27.24amount for each year of service credited that may be provided for in the bylaws is
the greater
27.25of the service pension amount provided for in the bylaws on the date of the calculation
of
27.26the average amount of the available financing per active covered firefighter or the
maximum
27.27service pension figure corresponding to the average amount of available financing
per active
27.28covered firefighter for the applicable specified period:
27.29
27.30
|
Minimum Average Amount of Available
Financing per Firefighter
|
Maximum Lump-Sum Service Pension
Amount Payable for Each Year of Service
|
27.31
|
$ ...
|
|
$ 10
|
|
27.32
|
11
|
|
20
|
|
27.33
|
16
|
|
30
|
|
27.34
|
23
|
|
40
|
|
27.35
|
27
|
|
50
|
|
27.36
|
32
|
|
60
|
|
27.37
|
43
|
|
80
|
|
28.1
|
54
|
|
100
|
|
28.2
|
65
|
|
120
|
|
28.3
|
77
|
|
140
|
|
28.4
|
86
|
|
160
|
|
28.5
|
97
|
|
180
|
|
28.6
|
108
|
|
200
|
|
28.7
|
131
|
|
240
|
|
28.8
|
151
|
|
280
|
|
28.9
|
173
|
|
320
|
|
28.10
|
194
|
|
360
|
|
28.11
|
216
|
|
400
|
|
28.12
|
239
|
|
440
|
|
28.13
|
259
|
|
480
|
|
28.14
|
281
|
|
520
|
|
28.15
|
302
|
|
560
|
|
28.16
|
324
|
|
600
|
|
28.17
|
347
|
|
640
|
|
28.18
|
367
|
|
680
|
|
28.19
|
389
|
|
720
|
|
28.20
|
410
|
|
760
|
|
28.21
|
432
|
|
800
|
|
28.22
|
486
|
|
900
|
|
28.23
|
540
|
|
1000
|
|
28.24
|
594
|
|
1100
|
|
28.25
|
648
|
|
1200
|
|
28.26
|
702
|
|
1300
|
|
28.27
|
756
|
|
1400
|
|
28.28
|
810
|
|
1500
|
|
28.29
|
864
|
|
1600
|
|
28.30
|
918
|
|
1700
|
|
28.31
|
972
|
|
1800
|
|
28.32
|
1026
|
|
1900
|
|
28.33
|
1080
|
|
2000
|
|
28.34
|
1134
|
|
2100
|
|
28.35
|
1188
|
|
2200
|
|
28.36
|
1242
|
|
2300
|
|
28.37
|
1296
|
|
2400
|
|
28.38
|
1350
|
|
2500
|
|
29.1
|
1404
|
|
2600
|
|
29.2
|
1458
|
|
2700
|
|
29.3
|
1512
|
|
2800
|
|
29.4
|
1566
|
|
2900
|
|
29.5
|
1620
|
|
3000
|
|
29.6
|
1672
|
|
3100
|
|
29.7
|
1726
|
|
3200
|
|
29.8
|
1753
|
|
3250
|
|
29.9
|
1780
|
|
3300
|
|
29.10
|
1820
|
|
3375
|
|
29.11
|
1834
|
|
3400
|
|
29.12
|
1888
|
|
3500
|
|
29.13
|
1942
|
|
3600
|
|
29.14
|
1996
|
|
3700
|
|
29.15
|
2023
|
|
3750
|
|
29.16
|
2050
|
|
3800
|
|
29.17
|
2104
|
|
3900
|
|
29.18
|
2158
|
|
4000
|
|
29.19
|
2212
|
|
4100
|
|
29.20
|
2265
|
|
4200
|
|
29.21
|
2319
|
|
4300
|
|
29.22
|
2373
|
|
4400
|
|
29.23
|
2427
|
|
4500
|
|
29.24
|
2481
|
|
4600
|
|
29.25
|
2535
|
|
4700
|
|
29.26
|
2589
|
|
4800
|
|
29.27
|
2643
|
|
4900
|
|
29.28
|
2697
|
|
5000
|
|
29.29
|
2751
|
|
5100
|
|
29.30
|
2805
|
|
5200
|
|
29.31
|
2859
|
|
5300
|
|
29.32
|
2913
|
|
5400
|
|
29.33
|
2967
|
|
5500
|
|
29.34
|
3021
|
|
5600
|
|
29.35
|
3075
|
|
5700
|
|
29.36
|
3129
|
|
5800
|
|
29.37
|
3183
|
|
5900
|
|
29.38
|
3237
|
|
6000
|
|
30.1
|
3291
|
|
6100
|
|
30.2
|
3345
|
|
6200
|
|
30.3
|
3399
|
|
6300
|
|
30.4
|
3453
|
|
6400
|
|
30.5
|
3507
|
|
6500
|
|
30.6
|
3561
|
|
6600
|
|
30.7
|
3615
|
|
6700
|
|
30.8
|
3669
|
|
6800
|
|
30.9
|
3723
|
|
6900
|
|
30.10
|
3777
|
|
7000
|
|
30.11
|
3831
|
|
7100
|
|
30.12
|
3885
|
|
7200
|
|
30.13
|
3939
|
|
7300
|
|
30.14
|
3993
|
|
7400
|
|
30.15
|
4047
|
|
7500
|
|
30.16
|
4101
|
|
7600
|
|
30.17
|
4155
|
|
7700
|
|
30.18
|
4209
|
|
7800
|
|
30.19
|
4263
|
|
7900
|
|
30.20
|
4317
|
|
8000
|
|
30.21
|
4371
|
|
8100
|
|
30.22
|
4425
|
|
8200
|
|
30.23
|
4479
|
|
8300
|
|
30.24
|
4533
|
|
8400
|
|
30.25
|
4587
|
|
8500
|
|
30.26
|
4641
|
|
8600
|
|
30.27
|
4695
|
|
8700
|
|
30.28
|
4749
|
|
8800
|
|
30.29
|
4803
|
|
8900
|
|
30.30
|
4857
|
|
9000
|
|
30.31
|
4911
|
|
9100
|
|
30.32
|
4965
|
|
9200
|
|
30.33
|
5019
|
|
9300
|
|
30.34
|
5073
|
|
9400
|
|
30.35
|
5127
|
|
9500
|
|
30.36
|
5181
|
|
9600
|
|
30.37
|
5235
|
|
9700
|
|
30.38
|
5289
|
|
9800
|
|
31.1
|
5343
|
|
9900
|
|
31.2
|
5397
|
|
10,000
|
|
31.3
|
any amount in excess of
|
|
|
|
31.4
|
5397
|
|
10,000
|
|
31.5 (e) For a defined benefit relief association in which the governing bylaws provide
for a
31.6monthly benefit service pension as an alternative form of service pension payment
to a
31.7lump-sum service pension, the maximum service pension amount for each pension payment
31.8type must be determined using the applicable table contained in this subdivision.
31.9 (f) If a defined benefit relief association establishes a service pension in compliance
31.10with the applicable maximum contained in paragraph (c) or (d) and the minimum average
31.11amount of available financing per active covered firefighter is subsequently reduced
because
31.12of a reduction in
fire state aid required municipal contributions or because of an increase
31.13in the number of active firefighters, the relief association may continue to provide
the prior
31.14service pension amount specified in its bylaws, but may not increase the service pension
31.15amount until the minimum average amount of available financing per firefighter under
the
31.16table in paragraph (c) or (d), whichever applies, permits.
31.17 (g) No defined benefit relief association is authorized to provide a service pension
in an
31.18amount greater than the largest applicable flexible service pension maximum amount
even
31.19if the amount of available financing per firefighter is greater than the financing
amount
31.20associated with the largest applicable flexible service pension maximum.
31.21(h) The method of calculating service pensions must be applied uniformly for all years
31.22of active service. Credit must be given for all years of active service except for
caps on
31.23service credit if so provided in the bylaws of the relief association.
31.24 Sec. 29. Minnesota Statutes 2016, section 424A.02, subdivision 3a, is amended to read:
31.25 Subd. 3a.
Penalty for paying pension greater than applicable maximum. (a) If a
31.26defined benefit relief association pays a service pension greater than the maximum
service
31.27pension associated with the applicable average amount of available financing per active
31.28covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever
applies,
31.29the maximum service pension under subdivision 3, paragraph (f), or the applicable
maximum
31.30service pension amount specified in subdivision 3, paragraph (g), whichever is less,
the
31.31state auditor shall
:(1) disqualify the municipality or the nonprofit firefighting corporation
31.32associated with the relief association from receiving fire state aid by making the
appropriate
31.33notification to the municipality and the commissioner of revenue, with the disqualification
31.34applicable for the next apportionment and payment of fire state aid; and(2) order the treasurer
32.1of the applicable relief association to recover the amount of the overpaid service
pension
32.2or pensions from any retired firefighter who received an overpayment.
32.3(b) Fire state aid amounts from disqualified municipalities for the period of
32.4disqualifications under paragraph (a), clause (1), must be credited to the amount
of fire
32.5insurance premium tax proceeds available for the next subsequent fire state aid
32.6apportionment.
32.7(c) The amount of any overpaid service pension recovered under paragraph (a), clause
32.8(2), must be credited to the amount of fire insurance premium tax proceeds available
for
32.9the next subsequent fire state aid apportionment.
32.10(d) (b) The determination of the state auditor that a relief association has paid a service
32.11pension greater than the applicable maximum must be made on the basis of the information
32.12filed by the relief association and the municipality with the state auditor
under sections
32.1369.011, subdivision 2
, and
69.051, subdivision 1 or 1a, whichever applies, and any other
32.14relevant information that comes to the attention of the state auditor. The determination
of
32.15the state auditor is final. An aggrieved municipality, relief association, or person
may appeal
32.16the determination under section
480A.06.
32.17(e) The state auditor may certify, upon learning that a relief association overpaid
a service
32.18pension based on an error in the maximum service pension calculation, the municipality
or
32.19nonprofit firefighting corporation associated with the relief association for fire
state aid if
32.20(1) there is evidence that the error occurred in good faith, and (2) the relief association
has
32.21initiated recovery of any overpayment amount. Notwithstanding paragraph (c), all
32.22overpayments recovered under this paragraph must be credited to the relief association's
32.23special fund.
32.24 Sec. 30. Minnesota Statutes 2016, section 424A.02, subdivision 10, is amended to read:
32.25 Subd. 10.
Local approval of bylaw amendments; filing requirements. (a) Each defined
32.26benefit relief association to which this section applies must file a revised copy
of its governing
32.27bylaws with the state auditor upon the adoption of any amendment to its governing
bylaws
32.28by the relief association or upon the approval of any amendment to its governing bylaws
32.29granted by the governing body of each municipality served by the fire department to
which
32.30the relief association is directly associated.
Failure of the relief association to file a copy of
32.31the bylaws or any bylaw amendments with the state auditor disqualifies the municipality
32.32from the distribution of any future fire state aid until this filing requirement has
been
32.33completed.
33.1(b) If the special fund of the relief association does not have a surplus over full
funding
33.2under section
424A.092, subdivision 3, paragraph (c), clause (5), or
424A.093, subdivision
33.34
, and if the municipality is required to provide financial support to the special
fund of the
33.4relief association under section
424A.092 or
424A.093, no bylaw amendment which would
33.5affect the amount of, the manner of payment of, or the conditions for qualification
for service
33.6pensions or ancillary benefits or disbursements other than administrative expenses
authorized
33.7under section
69.80 payable from the special fund of the relief association is effective until
33.8it has been ratified as required under section
424A.092, subdivision 6, or
424A.093,
33.9subdivision 6. If the special fund of the relief association has a surplus over full
funding
33.10under section
424A.092, subdivision 3, or
424A.093, subdivision 4, and if the municipality
33.11is not required to provide financial support to the special fund under this section,
the relief
33.12association may adopt or amend without municipal ratification its articles of incorporation
33.13or bylaws which increase or otherwise affect the service pensions or ancillary benefits
33.14payable from the special fund if authorized under section
424A.092, subdivision 6, or
33.15424A.093, subdivision 6
.
33.16(c) If the relief association pays only a lump-sum pension, the financial requirements
33.17are to be determined by the board of trustees following the preparation of an estimate
of
33.18the expected increase in the accrued liability and annual accruing liability of the
relief
33.19association attributable to the change. If the relief association pays a monthly benefit
service
33.20pension, the financial requirements are to be determined by the board of trustees
following
33.21either an updated actuarial valuation including the proposed change or an estimate
of the
33.22expected actuarial impact of the proposed change prepared by the actuary of the relief
33.23association. If a relief association adopts or amends its articles of incorporation
or bylaws
33.24without municipal ratification under this subdivision, and, subsequent to the amendment
or
33.25adoption, the financial requirements of the special fund under this section are such
so as to
33.26require financial support from the municipality, the provision which was implemented
33.27without municipal ratification is no longer effective without municipal ratification,
and any
33.28service pensions or ancillary benefits payable after that date must be paid only in
accordance
33.29with the articles of incorporation or bylaws as amended or adopted with municipal
33.30ratification.
33.31 Sec. 31. Minnesota Statutes 2016, section 424A.05, subdivision 2, is amended to read:
33.32 Subd. 2.
Special fund assets and revenues. The special fund must be credited with all
33.33fire state aid and police and firefighter retirement supplemental state aid received
under
33.34sections
69.011 to
69.051 and
423A.022, all taxes levied by or other revenues received from
33.35the municipality under sections
424A.091 to
424A.096 or any applicable special law requiring
34.1municipal support for the relief association, any funds or property donated, given,
granted
34.2or devised by any person which is specified for use for the support of the special
fund and
34.3any interest or investment return earned upon the assets of the special fund. The
treasurer
34.4of the relief association is the custodian of the assets of the special fund and must
be the
34.5recipient on behalf of the special fund of all revenues payable to the special fund.
The
34.6treasurer shall maintain adequate records documenting any transaction involving the
assets
34.7or the revenues of the special fund. These records and the bylaws of the relief association
34.8are public and must be open for inspection by any member of the relief association,
any
34.9officer or employee of the state or of the municipality, or any member of the public,
at
34.10reasonable times and places.
34.11 Sec. 32. Minnesota Statutes 2016, section 424A.05, is amended by adding a subdivision
34.12to read:
34.13 Subd. 3b. Authorized administrative expenses. (a) Notwithstanding any provision of
34.14law to the contrary, the payment of the following necessary, reasonable and direct
expenses
34.15of maintaining, protecting and administering the special fund, when provided for in
the
34.16bylaws of the association and approved by the board of trustees, constitutes authorized
34.17administrative expenses of a volunteer firefighters' relief association organized
under any
34.18law of this state or the Bloomington Fire Department Relief Association:
34.19(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
34.20postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
personnel;
34.21(2) salaries of the officers of the association, or their designees, and salaries
of the
34.22members of the board of trustees of the association if the salary amounts are approved
by
34.23the governing body of the entity that is responsible for meeting any minimum obligation
34.24under section
424A.092 or
424A.093, or Laws 2013, chapter 111, article 5, sections 31 to
34.2542, and the itemized expenses of relief association officers and board members that
are
34.26incurred as a result of fulfilling their responsibilities as administrators of the
special fund;
34.27(3) tuition, registration fees, organizational dues, and other authorized expenses
of the
34.28officers or members of the board of trustees incurred in attending educational conferences,
34.29seminars, or classes relating to the administration of the relief association;
34.30(4) audit and audit-related services, accounting and accounting-related services,
and
34.31actuarial, medical, legal, and investment and performance evaluation expenses;
34.32(5) filing and application fees payable by the relief association to federal or other
34.33governmental entities;
35.1(6) reimbursement to the officers and members of the board of trustees, or their designees,
35.2for reasonable and necessary expenses actually paid and incurred in the performance
of
35.3their duties as officers or members of the board; and
35.4(7) premiums on fiduciary liability insurance and official bonds for the officers,
members
35.5of the board of trustees, and employees of the relief association.
35.6(b) Any other expenses of the relief association must be paid from the general fund
of
35.7the association, if one exists. If a relief association has only one fund, that fund
is the special
35.8fund for purposes of this section. If a relief association has a special fund and
a general
35.9fund, and any expense of the relief association that is directly related to the purposes
for
35.10which both funds were established, the payment of that expense must be apportioned
between
35.11the two funds on the basis of the benefits derived by each fund.
35.12 Sec. 33. Minnesota Statutes 2016, section 424A.07, is amended to read:
35.13424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT
35.14OF RELIEF ASSOCIATIONS.
35.15Before paying any service pensions or retirement benefits under section
424A.02 or
35.16before becoming entitled to receive any amounts of fire state aid upon transmittal
from a
35.17contracting municipality under section
69.031, subdivision 5, a nonprofit firefighting
35.18corporation shall establish a volunteer firefighters relief association governed by
this chapter.
35.19 Sec. 34. Minnesota Statutes 2016, section 424A.091, subdivision 2, is amended to read:
35.20 Subd. 2.
Authorized employer support for a relief association. Notwithstanding any
35.21law to the contrary, a municipality may lawfully contribute public funds
, including the
35.22transfer of any applicable fire state aid, or may levy property taxes for the support of a
35.23firefighters relief association specified in subdivision 1, however organized, which
provides
35.24retirement coverage or pays a service pension to retired firefighter or a retirement
benefit
35.25to a disabled firefighter or a surviving dependent of either an active or retired
firefighter
35.26for the operation and maintenance of the relief association only if the municipality
and the
35.27relief association both comply with the applicable provisions of sections
424A.091 to
35.28424A.096
.
35.29 Sec. 35. Minnesota Statutes 2016, section 424A.092, subdivision 3, is amended to read:
35.30 Subd. 3.
Financial requirements of relief association; minimum obligation of
35.31municipality. (a) During the month of July, the officers of the relief association shall
35.32determine the overall funding balance of the special fund for the current calendar
year, the
36.1financial requirements of the special fund for the following calendar year and the
minimum
36.2obligation of the municipality with respect to the special fund for the following
calendar
36.3year in accordance with the requirements of this subdivision.
36.4(b) The overall funding balance of the special fund for the current calendar year
must
36.5be determined in the following manner:
36.6(1) The total accrued liability of the special fund for all active and deferred members
of
36.7the relief association as of December 31 of the current year must be calculated under
36.8subdivisions 2 and 2a, if applicable.
36.9(2) The total present assets of the special fund projected to December 31 of the current
36.10year, including receipts by and disbursements from the special fund anticipated to
occur on
36.11or before December 31, must be calculated. To the extent possible, for those assets
for which
36.12a market value is readily ascertainable, the current market value as of the date of
the
36.13calculation for those assets must be utilized in making this calculation. For any
asset for
36.14which no market value is readily ascertainable, the cost value or the book value,
whichever
36.15is applicable, must be utilized in making this calculation.
36.16(3) The amount of the total present assets of the special fund calculated under clause
(2)
36.17must be subtracted from the amount of the total accrued liability of the special fund
calculated
36.18under clause (1). If the amount of total present assets exceeds the amount of the
total accrued
36.19liability, then the special fund is considered to have a surplus over full funding.
If the amount
36.20of the total present assets is less than the amount of the total accrued liability,
then the
36.21special fund is considered to have a deficit from full funding. If the amount of total
present
36.22assets is equal to the amount of the total accrued liability, then the special fund
is considered
36.23to be fully funded.
36.24(c) The financial requirements of the special fund for the following calendar year
must
36.25be determined in the following manner:
36.26(1) The total accrued liability of the special fund for all active and deferred members
of
36.27the relief association as of December 31 of the calendar year next following the current
36.28calendar year must be calculated under subdivisions 2 and 2a, if applicable.
36.29(2) The increase in the total accrued liability of the special fund for the following
calendar
36.30year over the total accrued liability of the special fund for the current year must
be calculated.
36.31(3) The amount of anticipated future administrative expenses of the special fund must
36.32be calculated by multiplying the dollar amount of the administrative expenses of the
special
36.33fund for the most recent prior calendar year by the factor of 1.035.
37.1(4) If the special fund is fully funded, the financial requirements of the special
fund for
37.2the following calendar year are the total of the amounts calculated under clauses
(2) and
37.3(3).
37.4(5) If the special fund has a deficit from full funding, the financial requirements
of the
37.5special fund for the following calendar year are the financial requirements of the
special
37.6fund calculated as though the special fund were fully funded under clause (4) plus
an amount
37.7equal to one-tenth of the original amount of the deficit from full funding of the
special fund
37.8as determined under clause (2) resulting either from an increase in the amount of
the service
37.9pension occurring in the last ten years or from a net annual investment loss occurring
during
37.10the last ten years until each increase in the deficit from full funding is fully retired.
The
37.11annual amortization contribution under this clause may not exceed the amount of the
deficit
37.12from full funding.
37.13(6) If the special fund has a surplus over full funding, the financial requirements
of the
37.14special fund for the following calendar year are the financial requirements of the
special
37.15fund calculated as though the special fund were fully funded under clause (4) reduced
by
37.16an amount equal to one-tenth of the amount of the surplus over full funding of the
special
37.17fund.
37.18(d) The minimum obligation of the municipality with respect to the special fund is
the
37.19financial requirements of the special fund reduced by
the amount of any fire state aid and
37.20police and firefighter retirement supplemental state aid payable under sections
69.011 to
37.2169.051
and
423A.022 reasonably anticipated to be received by the municipality for transmittal
37.22to the special fund during the following calendar year, an amount of interest on the assets
37.23of the special fund projected to the beginning of the following calendar year calculated
at
37.24the rate of five percent per annum, and the amount of any contributions to the special
fund
37.25required by the relief association bylaws from the active members of the relief association
37.26reasonably anticipated to be received during the following calendar year.
A reasonable
37.27amount of anticipated fire state aid is an amount that does not exceed the fire state
aid
37.28actually received in the prior year multiplied by the factor 1.035.
37.29 Sec. 36. Minnesota Statutes 2016, section 424A.092, subdivision 4, is amended to read:
37.30 Subd. 4.
Certification of financial requirements and minimum municipal obligation;
37.31levy. (a) The officers of the relief association shall certify the financial requirements
of the
37.32special fund of the relief association and the minimum obligation of the municipality
with
37.33respect to the special fund of the relief association as determined under subdivision
3 on or
37.34before August 1 of each year. The certification must be made to the entity that is
responsible
38.1for satisfying the minimum obligation with respect to the special fund of the relief
association.
38.2If the responsible entity is a joint powers entity, the certification must be made
in the manner
38.3specified in the joint powers agreement, or if the joint powers agreement is silent
on this
38.4point, the certification must be made to the chair of the joint powers board.
38.5(b) The financial requirements of the relief association and the minimum municipal
38.6obligation must be included in the financial report or financial statement under section
38.769.051
. The schedule forms related to the determination of the financial requirements must
38.8be filed with the state auditor by March 31, annually, if the relief association is
required to
38.9file a financial statement under section
69.051, subdivision 1a, or by June 30, annually, if
38.10the relief association is required to file a financial report and audit under section
69.051,
38.11subdivision 1
.
38.12(c) (b) The municipality shall provide for at least the minimum obligation of the
38.13municipality with respect to the special fund of the relief association by tax levy
or from
38.14any other source of public revenue.
38.15(d) (c) The municipality may levy taxes for the payment of the minimum municipal
38.16obligation without any limitation as to rate or amount and irrespective of any limitations
38.17imposed by other provisions of law upon the rate or amount of taxation until the balance
of
38.18the special fund or any fund of the relief association has attained a specified level.
In addition,
38.19any taxes levied under this section must not cause the amount or rate of any other
taxes
38.20levied in that year or to be levied in a subsequent year by the municipality which
are subject
38.21to a limitation as to rate or amount to be reduced.
38.22(e) (d) If the municipality does not include the full amount of the minimum municipal
38.23obligations in its levy for any year, the officers of the relief association shall
certify that
38.24amount to the county auditor, who shall spread a levy in the amount of the certified
minimum
38.25municipal obligation on the taxable property of the municipality.
38.26(f) (e) If the state auditor determines that a municipal contribution actually made in a
38.27plan year was insufficient under section
424A.091, subdivision 3, paragraph (c), clause (5),
38.28the state auditor may request a copy of the certifications under this subdivision
from the
38.29relief association or from the city. The relief association or the city, whichever
applies, must
38.30provide the certifications within 14 days of the date of the request from the state
auditor.
38.31 Sec. 37. Minnesota Statutes 2016, section 424A.093, subdivision 5, is amended to read:
38.32 Subd. 5.
Minimum municipal obligation. (a) The officers of the relief association shall
38.33determine the minimum obligation of the municipality with respect to the special fund
of
39.1the relief association for the following calendar year on or before August 1 of each
year in
39.2accordance with the requirements of this subdivision.
39.3(b) The minimum obligation of the municipality with respect to the special fund is
an
39.4amount equal to the financial requirements of the special fund of the relief association
39.5determined under subdivision 4, reduced by
the estimated amount of any fire state aid and
39.6police and firefighter retirement supplemental state aid payable under sections
69.011 to
39.769.051
and
423A.022 reasonably anticipated to be received by the municipality for transmittal
39.8to the special fund of the relief association during the following year and the amount of any
39.9anticipated contributions to the special fund required by the relief association bylaws
from
39.10the active members of the relief association reasonably anticipated to be received
during
39.11the following calendar year.
A reasonable amount of anticipated fire state aid is an amount
39.12that does not exceed the fire state aid actually received in the prior year multiplied
by the
39.13factor 1.035.
39.14(c) The officers of the relief association shall certify the financial requirements
of the
39.15special fund of the relief association and the minimum obligation of the municipality
with
39.16respect to the special fund of the relief association as determined under subdivision
4 and
39.17this subdivision by August 1 of each year. The certification must be made to the entity
that
39.18is responsible for satisfying the minimum obligation with respect to the special fund
of the
39.19relief association. If the responsible entity is a joint powers entity, the certification
must be
39.20made in the manner specified in the joint powers agreement, or if the joint powers
agreement
39.21is silent on this point, the certification must be made to the chair of the joint
powers board.
39.22(d) The financial requirements of the relief association and the minimum municipal
39.23obligation must be included in the financial report or financial statement under section
39.2469.051
.
39.25(e) (d) The municipality shall provide for at least the minimum obligation of the
39.26municipality with respect to the special fund of the relief association by tax levy
or from
39.27any other source of public revenue. The municipality may levy taxes for the payment
of the
39.28minimum municipal obligation without any limitation as to rate or amount and irrespective
39.29of any limitations imposed by other provisions of law or charter upon the rate or
amount of
39.30taxation until the balance of the special fund or any fund of the relief association
has attained
39.31a specified level. In addition, any taxes levied under this section must not cause
the amount
39.32or rate of any other taxes levied in that year or to be levied in a subsequent year
by the
39.33municipality which are subject to a limitation as to rate or amount to be reduced.
40.1(f) (e) If the municipality does not include the full amount of the minimum municipal
40.2obligation in its levy for any year, the officers of the relief association shall
certify that
40.3amount to the county auditor, who shall spread a levy in the amount of the minimum
40.4municipal obligation on the taxable property of the municipality.
40.5(g) (f) If the state auditor determines that a municipal contribution actually made in a
40.6plan year was insufficient under section
424A.091, subdivision 3, paragraph (c), clause (5),
40.7the state auditor may request from the relief association or from the city a copy
of the
40.8certifications under this subdivision. The relief association or the city, whichever
applies,
40.9must provide the certifications within 14 days of the date of the request from the
state auditor.
40.10 Sec. 38. Minnesota Statutes 2016, section 424B.10, subdivision 2, is amended to read:
40.11 Subd. 2.
Funding. (a)
Unless The applicable municipalities
must agree in writing
in
40.12what manner to allocate the minimum municipal obligation
in a different manner, the
40.13minimum municipal obligation under section
424A.092 or
424A.093, whichever applies
,
40.14must be allocated between the applicable municipalities in proportion to their fire
state aid.
40.15(b) If any applicable municipality fails to meet its portion of the minimum municipal
40.16obligation to the subsequent relief association, all other applicable municipalities
are jointly
40.17obligated to provide the required funding upon certification by the relief association
secretary.
40.18An applicable municipality that pays the minimum municipal obligation amount for another
40.19applicable municipality, the municipality may collect that payment amount, plus a
25 percent
40.20surcharge, from the responsible applicable municipality by any available means, including
40.21a deduction from any state aid or payment amount payable to the responsible municipality
40.22upon certification of the necessary information to the commissioner of management
and
40.23budget.
40.24 Sec. 39.
REPEALER.
40.25Minnesota Statutes 2016, sections 69.011, subdivision 4; 69.021, subdivisions 7 and
8;
40.2669.051; 69.80; 424A.03, subdivision 2; 424A.08; 424A.091, subdivision 3; and 424A.094,
40.27subdivision 1, are repealed.
40.28 Sec. 40.
EFFECTIVE DATE.
40.29Sections 1 to 39 are effective the day following final enactment."
40.30Renumber the articles in sequence
40.31Amend the title accordingly