1.1 	A bill for an act
1.2 	relating to local government; repealing the
1.3 	compensation limit for local government employees;
1.4 	amending Minnesota Statutes 2004, sections 356.611,
1.5 	subdivision 1; 465.719, subdivision 9; repealing
1.6 	Minnesota Statutes 2004, section 43A.17, subdivision 9.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 356.611,
1.9 	subdivision 1, is amended to read:
1.10 		Subdivision 1.State salary limitations.  (a)
1.11 	Notwithstanding any provision of law, bylaws, articles of
1.12 	incorporation, retirement and disability allowance plan
1.13 	agreements, or retirement plan contracts to the contrary, the
1.14 	covered salary for pension purposes for a plan participant of a
1.15 	covered retirement fund enumerated in section 356.30,
1.16 	subdivision 3, may not exceed 95 percent of the salary
1.17 	established for the governor under section 15A.082 at the time
1.18 	the person received the salary.
1.19 	(b) This section does not apply to a salary paid:
1.20 	(1) to the governor or to a judge;
1.21 	(2) to an employee of a political subdivision in a position
1.22 	that is excluded from the limit as specified under section
1.23 	43A.17, subdivision 9;
1.24 	(3) to a state employee as defined under section 43A.02,
1.25 	subdivision 21;
1.26 	(4)  to an employee of Gillette Hospital who is covered by
2.1 	the general state employees retirement plan of the Minnesota
2.2 	State Retirement System;
2.3 	(5)  to an employee of the Minnesota Crop Improvement
2.4 	Council; or
2.5 	(6)  to an employee of the Minnesota Historical Society.
2.6 	(c) The limited covered salary determined under this
2.7 	section must be used in determining employee and employer
2.8 	contributions and in determining retirement annuities and other
2.9 	benefits under the respective covered retirement fund and under
2.10 	this chapter.

2.11 	Sec. 2. Minnesota Statutes 2004, section 465.719,
2.12 	subdivision 9, is amended to read:
2.13 		Subd. 9.Application of other laws.  A corporation
2.14 	created by a political subdivision under this section must
2.15 	comply with every law that applies to the political subdivision,
2.16 	as if the corporation is a part of the political subdivision,
2.17 	unless the resolution ratifying creation of the corporation
2.18 	specifically exempts the corporation from part or all of a law.
2.19 	If the resolution exempts the corporation from part or all of a
2.20 	law, the resolution must make a detailed and specific finding as
2.21 	to why the corporation cannot fulfill its purpose if the
2.22 	corporation is subject to that law.  A corporation may not be
2.23 	exempted from chapter 13D, the Minnesota Open Meeting Law,
2.24 	sections 138.163 to 138.25, governing records management, or
2.25 	chapter 13, the Minnesota Government Data Practices Act.  Any
2.26 	affected or interested person may bring an action in district
2.27 	court to void the resolution on the grounds that the findings
2.28 	are not sufficiently detailed and specific, or that the
2.29 	corporation can fulfill its purpose if it is subject to the law
2.30 	from which the resolution exempts the corporation.  Laws that
2.31 	apply to a political subdivision that also apply to a
2.32 	corporation created by a political subdivision under this
2.33 	subdivision include, but are not limited to:
2.34 	(1) chapter 13D, the Minnesota Open Meeting Law;
2.35 	(2) chapter 13, the Minnesota Government Data Practices
2.36 	Act;
3.1 	(3) section 471.345, the Uniform Municipal Contracting Law;
3.2 	(4) sections 43A.17, limiting the compensation of employees
3.3 	based on the governor's salary;471.991 to 471.999, providing
3.4 	for equitable pay; and 465.72 and 465.722, governing severance
3.5 	pay;
3.6 	(5) section 275.065, providing for truth-in-taxation
3.7 	hearings.  If any tax revenues of the political subdivision will
3.8 	be appropriated to the corporation, the corporation's annual
3.9 	operating and capital budgets must be included in the
3.10 	truth-in-taxation hearing of the political subdivision that
3.11 	created the corporation;
3.12 	(6) if the corporation issues debt, its debt is included in
3.13 	the political subdivision's debt limit if it would be included
3.14 	if issued by the political subdivision, and issuance of the debt
3.15 	is subject to the election and other requirements of chapter 475
3.16 	and section 471.69;
3.17 	(7) section 471.895, prohibiting acceptance of gifts from
3.18 	interested parties, and sections 471.87 to 471.89, relating to
3.19 	interests in contracts;
3.20 	(8) chapter 466, relating to municipal tort liability;
3.21 	(9) chapter 118A, requiring deposit insurance or bond or
3.22 	pledged collateral for deposits;
3.23 	(10) chapter 118A, restricting investments;
3.24 	(11) section 471.346, requiring ownership of vehicles to be
3.25 	identified;
3.26 	(12) sections 471.38 to 471.41, requiring claims to be in
3.27 	writing, itemized, and approved by the governing board before
3.28 	payment can be made; and
3.29 	(13) the corporation cannot make advances of pay, make or
3.30 	guarantee loans to employees, or provide in-kind benefits unless
3.31 	authorized by law.

3.32 	Sec. 3. REPEALER.
 3.33 	Minnesota Statutes 2004, section 43A.17, subdivision 9, is
3.34 	repealed.