1.1.................... moves to amend H.F. No. 723, the first engrossment, as follows:
1.2Page 118, after line 24, insert:
1.3 "Sec. 2. Minnesota Statutes 2008, section 423A.02, subdivision 1, is amended to read:
1.4 Subdivision 1.
Amortization state aid. (a) A municipality in which is located
1.5a local police or salaried firefighters' relief association to which the provisions of
1.6section
69.77, apply, that had an unfunded actuarial accrued liability in the most recent
1.7relief association actuarial valuation, is entitled, upon application as required by the
1.8commissioner of revenue, to receive local police and salaried firefighters' relief association
1.9amortization state aid if the municipality and the appropriate relief association both comply
1.10with the applicable provisions of sections
69.031, subdivision 5,
69.051, subdivisions 1
1.11and 3
, and
69.77.
If a municipality loses entitlement for amortization state aid in any year
1.12because its local relief association no longer has an unfunded actuarial accrued liability,
1.13the municipality is not entitled to amortization state aid in any subsequent year.
1.14(b) The total amount of amortization state aid to all entitled municipalities must
1.15not exceed $5,055,000.
1.16(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph,
1.17the amount of amortization state aid to which a municipality is entitled annually is an
1.18amount equal to the level annual dollar amount required to amortize, by December 31,
1.192010, the unfunded actuarial accrued liability of the special fund of the appropriate
1.20relief association as reported in the December 31, 1978, actuarial valuation of the
1.21relief association prepared under sections
356.215 and
356.216, reduced by the dollar
1.22amount required to pay the interest on the unfunded actuarial accrued liability of the
1.23special fund of the relief association for calendar year 1981 set at the rate specified in
1.24Minnesota Statutes 1978, section
356.215, subdivision 8. For the city of Minneapolis, the
1.25amortization state aid amount thus determined must be reduced by $747,232 on account of
1.26the Minneapolis Police Relief Association and by $772,768 on account of the Minneapolis
1.27Fire Department Relief Association. If the amortization state aid amounts determined
2.1under this paragraph exceed the amount appropriated for this purpose, the amortization
2.2state aid for actual allocation must be reduced pro rata.
2.3(d) Payment of amortization state aid to municipalities must be made directly to
2.4the municipalities involved in three equal installments on July 15, September 15, and
2.5November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
2.6shall transmit the aid amount to the treasurer of the local relief association for immediate
2.7deposit in the special fund of the relief association.
2.8(e) The commissioner of revenue shall prescribe and periodically revise the form for
2.9and content of the application for the amortization state aid.
2.10 Sec. 3. Minnesota Statutes 2008, section 423A.02, subdivision 3, is amended to read:
2.11 Subd. 3.
Reallocation of amortization or supplementary amortization state
2.12aid. (a) Seventy percent of the difference between $5,720,000 and the current year
2.13amortization aid or supplemental amortization aid distributed under subdivisions 1 and 1a
2.14that is not distributed for any reason to a municipality for use by a local police or salaried
2.15fire relief association must be distributed by the commissioner of revenue according to this
2.16paragraph. The commissioner shall distribute
70 50 percent of the amounts derived under
2.17this paragraph to the Teachers Retirement Association
, 10 percent to the Duluth Teachers
2.18Retirement Fund Association, and
30 40 percent to the St. Paul Teachers Retirement Fund
2.19Association to fund the unfunded actuarial accrued liabilities of the respective funds.
2.20These payments shall be made on or before June 30 each fiscal year. The amount required
2.21under this paragraph is appropriated annually from the general fund to the commissioner
2.22of revenue. If the St. Paul Teachers Retirement Fund Association becomes fully funded,
2.23its eligibility for this aid ceases. Amounts remaining in the undistributed balance account
2.24at the end of the biennium if aid eligibility ceases cancel to the general fund.
2.25 (b) In order to receive amortization and supplementary amortization aid under
2.26paragraph (a), Independent School District No. 625, St. Paul, must make contributions
2.27to the St. Paul Teachers Retirement Fund Association in accordance with the following
2.28schedule:
2.29
|
|
Fiscal Year
|
|
Amount
|
|
2.30
|
|
1996
|
$
|
0
|
|
2.31
|
|
1997
|
$
|
0
|
|
2.32
|
|
1998
|
$
|
200,000
|
|
2.33
|
|
1999
|
$
|
400,000
|
|
2.34
|
|
2000
|
$
|
600,000
|
|
2.35
|
|
2001 and thereafter
|
$
|
800,000
|
|
3.1 (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must
3.2each make contributions to the Teachers Retirement Association in accordance with the
3.3following schedule:
3.4
3.5
|
|
Fiscal Year
|
City amount
|
|
School district
amount
|
|
3.6
|
|
1996
|
$
|
0
|
|
$
|
0
|
|
3.7
|
|
1997
|
$
|
0
|
|
$
|
0
|
|
3.8
|
|
1998
|
$
|
250,000
|
|
$
|
250,000
|
|
3.9
|
|
1999
|
$
|
400,000
|
|
$
|
400,000
|
|
3.10
|
|
2000
|
$
|
550,000
|
|
$
|
550,000
|
|
3.11
|
|
2001
|
$
|
700,000
|
|
$
|
700,000
|
|
3.12
|
|
2002
|
$
|
850,000
|
|
$
|
850,000
|
|
3.13
|
|
2003 and thereafter
|
$
|
1,000,000
|
|
$
|
1,000,000
|
|
3.14 (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as
3.15applicable, must be credited to a separate account in the applicable teachers retirement
3.16fund and may not be used in determining any benefit increases. The separate account
3.17terminates for a fund when the aid payments to the fund under paragraph (a) cease.
3.18 (e) Thirty percent of the difference between $5,720,000 and the current year
3.19amortization aid or supplemental amortization aid under subdivisions 1 and 1a that is not
3.20distributed for any reason to a municipality for use by a local police or salaried firefighter
3.21relief association must be distributed under section
69.021, subdivision 7, paragraph (d),
3.22as additional funding to support a minimum fire state aid amount for volunteer firefighter
3.23relief associations. The amount required under this paragraph is appropriated annually to
3.24the commissioner of revenue. "
3.25Renumber the sections in sequence and correct the internal references
3.26Amend the title accordingly