1.1 A bill for an act
1.2 relating to peace officer and firefighter duty disability benefits; limiting the period
1.3 of time that an employer must provide health insurance coverage; prohibiting a
1.4 peace officer or firefighter from waiving the right to continued health insurance
1.5 coverage; limiting attorney fees; amending Minnesota Statutes 2024, sections
1.6 299A.465, subdivision 1; 352B.101; 353.031, by adding a subdivision.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 299A.465, subdivision 1, is amended to read:
1.9 Subdivision 1.Officer or firefighter disabled in line of duty.(a) This subdivision
1.10applies to any peace officer or firefighter:
1.11 (1) who the Public Employees Retirement Association or the Minnesota State Retirement
1.12System determines is eligible to receive a duty disability benefit pursuant to section 353.656
1.13or 352B.10, subdivision 1, respectively; or
1.14 (2) who (i) does not qualify to receive disability benefits by operation of the eligibility
1.15requirements set forth in section 353.656, subdivision 1, paragraph (b), (ii) retires pursuant
1.16to section 353.651, subdivision 4, or (iii) is a member of a local police or salaried firefighters
1.17relief association and qualifies for a duty disability benefit under the terms of plans of the
1.18relief associations, and the peace officer or firefighter described in item (i), (ii), or (iii) has
1.19discontinued public service as a peace officer or firefighter as a result of a disabling injury
1.20and has been determined, by the Public Employees Retirement Association, to have otherwise
1.21met the duty disability criteria set forth in section 353.01, subdivision 41.
1.22 (b) A determination made on behalf of a peace officer or firefighter described in paragraph
1.23(a), clause (2), must be at the request of the peace officer or firefighter made for the purposes
1Section 1.
25-05473 as introduced04/10/25 REVISOR VH/HL
SENATE
STATE OF MINNESOTA
S.F. No. 3412NINETY-FOURTH SESSION
(SENATE AUTHORS: HOWE)
OFFICIAL STATUSD-PGDATE
Introduction and first reading04/22/2025
Referred to Judiciary and Public Safety 2.1of this section. Determinations made in accordance with paragraph (a) are binding on the
2.2peace officer or firefighter, employer, and state. The determination must be made by the
2.3executive director of the Public Employees Retirement Association or by the executive
2.4director of the Minnesota State Retirement System, whichever applies, and is not subject
2.5to section 356.96, subdivision 2. Upon making a determination, the executive director shall
2.6provide written notice to the peace officer or firefighter and the employer. This notice must
2.7include:
2.8 (1) a written statement of the reasons for the determination;
2.9 (2) a notice that the person may petition for a review of the determination by requesting
2.10that a contested case be initiated before the Office of Administrative Hearings, the cost of
2.11which must be borne by the peace officer or firefighter and the employer; and
2.12 (3) a statement that any person who does not petition for a review within 60 days is
2.13precluded from contesting issues determined by the executive director in any other
2.14administrative review or court procedure.
2.15If, prior to the contested case hearing, additional information is provided to support the
2.16claim for duty disability as defined in section 352B.011, subdivision 7, or 353.01, subdivision
2.1741, whichever applies, the executive director may reverse the determination without the
2.18requested hearing. If a hearing is held before the Office of Administrative Hearings, the
2.19determination rendered by the judge conducting the fact-finding hearing is a final decision
2.20and order under section 14.62, subdivision 2a, and is binding on the applicable executive
2.21director, the peace officer or firefighter, employer, and state. Review of a final determination
2.22made by the Office of Administrative Hearings under this section may only be obtained by
2.23writ of certiorari to the Minnesota Court of Appeals under sections 14.63 to 14.68. Only
2.24the peace officer or firefighter, employer, and state have standing to participate in a judicial
2.25review of the decision of the Office of Administrative Hearings.
2.26 (c) The officer's or firefighter's employer shall continue to provide health coverage for:
2.27 (1) the officer or firefighter; and
2.28 (2) the officer's or firefighter's dependents if the officer or firefighter was receiving
2.29dependent coverage at the time of the injury under the employer's group health plan.
2.30 (d) The employer is responsible for the continued payment of the employer's contribution
2.31for coverage of the officer or firefighter and, if applicable, the officer's or firefighter's
2.32dependents. Coverage The employer must continue coverage for the officer or firefighter
2.33and, if applicable, the officer's or firefighter's dependents for a period of three years or, if
2Section 1.
25-05473 as introduced04/10/25 REVISOR VH/HL 3.1earlier, until the officer or firefighter reaches or, if deceased, would have reached the age
3.2of 65. However, coverage for dependents does not have to be continued after the person is
3.3no longer a dependent.
3.4 (e) A peace officer or firefighter claiming a duty disability benefit must not waive the
3.5peace officer's or firefighter's right to continue health insurance coverage under this
3.6subdivision as part of a settlement with the peace officer's or firefighter's employer or another
3.7person or entity related to an application for a duty disability benefit under section 352B.101
3.8or 353.031. A peace officer or firefighter is subject to loss of eligibility for a duty disability
3.9benefit if the peace officer or firefighter agrees to waive the right to continued health
3.10insurance coverage.
3.11 EFFECTIVE DATE.This section is effective the day following final enactment.
3.12 Sec. 2. Minnesota Statutes 2024, section 352B.101, is amended to read:
3.13 352B.101 APPLICATION FOR DISABILITY BENEFIT.
3.14 Subdivision 1.Application required; commencement of disability benefit.(a) Except
3.15as otherwise specified under section 352B.102 and paragraph (b), a member claiming a
3.16disability benefit must file a written application for benefits in the office of the system in a
3.17form and manner prescribed by the executive director. The member shall provide medical
3.18or psychological evidence to support the application. The benefit begins to accrue the day
3.19following the start of disability or the day following the last day for which the member was
3.20paid, whichever is later, but not earlier than 180 days before the date the application is filed
3.21with the executive director.
3.22 Subd. 2.Completion of psychological condition treatment required.(b)
3.23Notwithstanding any law to the contrary, an employee, as defined in section 352B.102,
3.24subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological
3.25condition, as defined in section 352B.102, subdivision 1, clause (6), is not eligible for duty
3.26disability benefits under this chapter until the employee has satisfied the additional procedure,
3.27including all completion of treatment requirements under section 352B.102.
3.28 Subd. 3.Limitation on fees.(a) A fee for legal services arising from a member's claim
3.29for a duty disability benefit as defined in section 352B.10, subdivision 1, is permissible and
3.30does not require approval by the court if the fee for legal services is 20 percent or less of
3.31the first $275,000 of the present value of the duty disability benefit awarded to the member.
3.32 (b) A party that is dissatisfied with the attorney fees claimed may file a petition for
3.33review by a court of appropriate jurisdiction. The petition must disclose the fees requested,
3Sec. 2.
25-05473 as introduced04/10/25 REVISOR VH/HL 4.1the basis of the need for review, and whether a hearing is requested. A copy of the petition
4.2must be served on all interested parties.
4.3 (c) The retainer letter between the member and the law firm or attorney must disclose
4.4the limitation on fees. If requested by the executive director, the member must submit a
4.5copy of the retainer letter to the executive director.
4.6 (d) A law firm or attorney must not require payment of any attorney fees until the claim
4.7for which the fee was incurred has been resolved.
4.8 EFFECTIVE DATE.This section is effective the day following final enactment.
4.9 Sec. 3. Minnesota Statutes 2024, section 353.031, is amended by adding a subdivision to
4.10read:
4.11 Subd. 11.Limitation on fees.(a) A fee for legal services arising from a member's claim
4.12for a duty disability benefit as defined in section 353.656, subdivision 1, is permissible and
4.13does not require approval by the court if the fee for legal services is 20 percent or less of
4.14the first $275,000 of the present value of the duty disability benefit awarded to the member.
4.15 (b) A party that is dissatisfied with the attorney fees claimed may file a petition for
4.16review by a court of appropriate jurisdiction. The petition must disclose the fees requested,
4.17the basis of the need for review, and whether or not a hearing is requested. A copy of the
4.18petition must be served on all interested parties.
4.19 (c) The retainer letter between the member and the law firm or attorney must disclose
4.20the limitation on fees. If requested by the executive director, the member must submit a
4.21copy of the retainer letter to the executive director.
4.22 (d) A law firm or attorney must not require payment of any attorney fees until the claim
4.23for which the fee was incurred has been resolved.
4.24 EFFECTIVE DATE.This section is effective the day following final enactment.
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