MN HF3870

Amends Minnesota Statutes section 477B.04, subdivision 3, to revise how fire state aid is deposited and allocated among volunteer firefighter relief associations and retirement plans.

Creates new section 477B.042 establishing a formal aid allocation agreement process allowing municipalities and relief associations to divide fire state aid between relief associations and the public employees police and fire retirement plan.

Requires aid allocation agreements to specify the percentage, dollar amount, or formula for distributing fire state aid annually, be signed by authorized representatives, and be filed with the state auditor by March 1 each year.

Permits either party to terminate an aid allocation agreement if fire state aid changes by more than 50 percent from the prior year, with termination effective the following calendar year unless otherwise specified.

Requires municipalities to transmit fire state aid within 30 days of receipt and ensures fire state aid is disbursed within 18 months, with enforcement provisions requiring transmission to relief associations if agreements are not properly filed or meet requirements.