HF 2862

as introduced - 90th Legislature (2017 - 2018) Posted on 02/20/2018 10:22am

A bill for an act
relating to local government; prohibiting waivers to political subdivision salary
limits in certain circumstances; amending Minnesota Statutes 2016, section 43A.17,
subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 43A.17, subdivision 9, is amended to read:

Subd. 9.

Political subdivision compensation limit.

(a) The salary and the value of all
other forms of compensation of a person employed by a political subdivision of this state,
excluding a school district, may not exceed 110 percent of the salary of the governor as set
under section 15A.082, except as provided in this subdivision. For purposes of this
subdivision, "political subdivision of this state" includes a statutory or home rule charter
city, county, town, metropolitan or regional agency, or other political subdivision, but does
not include a hospital, clinic, or health maintenance organization owned by such a
governmental unit.

(b) Beginning in 2006, the limit in paragraph (a) must be adjusted annually in January.
The limit must equal the limit for the prior year increased by the percentage increase, if any,
in the Consumer Price Index for all-urban consumers from October of the second prior year
to October of the immediately prior year.

(c) Deferred compensation and payroll allocations to purchase an individual annuity
contract for an employee are included in determining the employee's salary. Other forms
of compensation which must be included to determine an employee's total compensation
are all other direct and indirect items of compensation which are not specifically excluded
by this subdivision. Other forms of compensation which must not be included in a
determination of an employee's total compensation for the purposes of this subdivision are:

(1) employee benefits that are also provided for the majority of all other full-time
employees of the political subdivision, vacation and sick leave allowances, health and dental
insurance, disability insurance, term life insurance, and pension benefits or like benefits the
cost of which is borne by the employee or which is not subject to tax as income under the
Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic, professional, educational, or
governmental nature; and

(3) reimbursement for actual expenses incurred by the employee which the governing
body determines to be directly related to the performance of job responsibilities, including
any relocation expenses paid during the initial year of employment.

The value of other forms of compensation is the annual cost to the political subdivision
for the provision of the compensation.

(d) The salary of a medical doctor or doctor of osteopathic medicine occupying a position
that the governing body of the political subdivision has determined requires an M.D. or
D.O. degree is excluded from the limitation in this subdivision.

(e) new text begin Subject to the requirements of paragraph (f), new text end the commissioner may increase the
limitation in this subdivision for a position that the commissioner has determined requires
special expertise necessitating a higher salary to attract or retain a qualified person. The
commissioner shall review each proposed increase giving due consideration to salary rates
paid to other persons with similar responsibilities in the state and nation. The commissioner
may not increase the limitation until the commissioner has presented the proposed increase
to the Legislative Coordinating Commission and received the commission's recommendation
on it. The recommendation is advisory only. If the commission does not give its
recommendation on a proposed increase within 30 days from its receipt of the proposal, the
commission is deemed to have made no recommendation. If the commissioner grants or
granted an increase under this paragraph, the new limitation must be adjusted beginning in
August 2005 and in each subsequent calendar year in January by the percentage increase
equal to the percentage increase, if any, in the Consumer Price Index for all-urban consumers
from October of the second prior year to October of the immediately prior year.

new text begin (f) The commissioner must not increase the limitation in this subdivision for any political
subdivision that received state aid under sections 477A.011 to 477A.14 in the calendar year
immediately preceding the request.
new text end