1.1                          A bill for an act 
  1.2             relating to employment; establishing and modifying 
  1.3             certain salary limits; amending Minnesota Statutes 
  1.4             1994, sections 3.855, subdivision 3; 15A.081, 
  1.5             subdivision 8; 15A.083, subdivision 5; 43A.17, 
  1.6             subdivisions 1, 3, and by adding a subdivision; 
  1.7             85A.02, subdivision 5a; and 298.22, subdivision 1; 
  1.8             proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 15A; repealing Minnesota Statutes 1994, 
  1.10            sections 15A.081, subdivisions 1 and 7b; and 43A.18, 
  1.11            subdivision 5. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 3.855, 
  1.14  subdivision 3, is amended to read: 
  1.15     Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
  1.16  commission shall also: 
  1.17     (a) review and approve, reject, or modify a plan for 
  1.18  compensation, terms and conditions of employment prepared and 
  1.19  submitted by the commissioner of employee relations under 
  1.20  section 43A.18, subdivision 2, covering all state employees who 
  1.21  are not represented by an exclusive bargaining representative 
  1.22  and whose compensation is not provided for by chapter 43A or 
  1.23  other law; 
  1.24     (b) review and approve, reject or modify a plan for total 
  1.25  compensation and terms and conditions of employment for 
  1.26  employees in positions identified as being managerial under 
  1.27  section 43A.18, subdivision 3, whose salaries and benefits are 
  1.28  not otherwise provided for in law or other plans established 
  2.1   under chapter 43A; 
  2.2      (c) review and approve, reject or modify recommendations 
  2.3   for salaries submitted by the governor under section 43A.18, 
  2.4   subdivision 5, covering agency head positions listed in section 
  2.5   15A.081 under section 15A.0815; 
  2.6      (d) review and approve, reject, or modify recommendations 
  2.7   for salaries of officials of higher education systems under 
  2.8   section 15A.081, subdivision 7b; and 
  2.9      (e) (d) review and approve, reject, or modify plans for 
  2.10  compensation, terms, and conditions of employment proposed under 
  2.11  section 43A.18, subdivision 4.; and 
  2.12     (e) review and approve, reject, or modify recommendations 
  2.13  of the commissioner of employee relations for increasing salary 
  2.14  rates under section 43A.17, subdivision 3a. 
  2.15     Sec. 2.  Minnesota Statutes 1994, section 15A.081, 
  2.16  subdivision 8, is amended to read: 
  2.17     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
  2.18  the contrary, positions listed in subdivision 1 section 
  2.19  15A.0815, subdivisions 3 and 4, and constitutional officers, and 
  2.20  the commissioner of iron range resources and rehabilitation are 
  2.21  authorized an annual expense allowance not to exceed $1,500 for 
  2.22  necessary expenses in the normal performance of their duties for 
  2.23  which no other reimbursement is provided.  The expenditures 
  2.24  under this subdivision are subject to any laws and rules 
  2.25  relating to budgeting, allotment and encumbrance, preaudit and 
  2.26  postaudit.  The commissioner of finance may promulgate rules to 
  2.27  assure the proper expenditure of these funds, and to provide for 
  2.28  reimbursement. 
  2.29     Sec. 3.  [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 
  2.30     Subdivision 1.  [SALARY LIMITS.] For purposes of 
  2.31  subdivisions 2 to 4, the governor's salary is as established 
  2.32  under section 15A.082. 
  2.33     The appointing authority, as defined in section 43A.02, 
  2.34  subdivision 5, shall establish salaries for the positions within 
  2.35  the prescribed limits as specified in subdivisions 2 to 4.  In 
  2.36  establishing individual salaries, the appointing authority shall 
  3.1   consider the criteria established in section 43A.18, subdivision 
  3.2   8, and the performance of individual incumbents.  The 
  3.3   performance evaluation must include a review of an incumbent's 
  3.4   progress toward attainment of affirmative action goals. 
  3.5      The appointing authority shall set the initial salary of a 
  3.6   head of a new agency or a chair of a new metropolitan board or 
  3.7   commission whose salary is not specifically prescribed by law 
  3.8   after consultation with the commissioner of employee relations, 
  3.9   whose recommendation is advisory only.  The amount of the new 
  3.10  salary must be comparable to the salary of an agency head or 
  3.11  commission chair having similar duties and responsibilities. 
  3.12     Subd. 2.  [HIGHER EDUCATION SYSTEM LIMITS.] The salaries 
  3.13  for the chancellor of the higher education board and the 
  3.14  executive director of the higher education coordinating board 
  3.15  may not exceed 95 percent of the salary of the governor.  For 
  3.16  purposes of this subdivision, "salary" does not include: 
  3.17     (1) employee benefits that are also provided for the 
  3.18  majority of all other full-time state employees, vacation and 
  3.19  sick leave allowances, health and dental insurance, disability 
  3.20  insurance, term life insurance, and pension benefits or like 
  3.21  benefits the cost of which is borne by the employee or which is 
  3.22  not subject to tax as income under the Internal Revenue Code of 
  3.23  1986; 
  3.24     (2) dues paid to organizations that are of a civic, 
  3.25  professional, educational, or governmental nature; 
  3.26     (3) reimbursement for actual expenses incurred by the 
  3.27  employee that the appointing authority determines to be directly 
  3.28  related to the performance of job responsibilities, including 
  3.29  any relocation expenses paid during the initial year of 
  3.30  employment; or 
  3.31     (4) a housing allowance for the chancellor of the higher 
  3.32  education board that is comparable to housing allowances 
  3.33  provided to chancellors and university presidents in similar 
  3.34  higher education systems nationwide. 
  3.35     Subd. 3.  [GROUP I SALARY LIMITS.] The salaries for 
  3.36  full-time positions in this subdivision may not exceed 85 
  4.1   percent of the salary of the governor:  
  4.2      Commissioner of administration; 
  4.3      Commissioner of agriculture; 
  4.4      Commissioner of commerce; 
  4.5      Commissioner of corrections; 
  4.6      Commissioner of economic security; 
  4.7      Commissioner of education; 
  4.8      Commissioner of employee relations; 
  4.9      Commissioner of finance; 
  4.10     Commissioner of health; 
  4.11     Commissioner, housing finance agency; 
  4.12     Commissioner of human rights; 
  4.13     Commissioner of human services; 
  4.14     Executive director, state board of investment; 
  4.15     Commissioner of labor and industry; 
  4.16     Commissioner of natural resources; 
  4.17     Commissioner of office of strategic and long-range 
  4.18  planning; 
  4.19     Commissioner, pollution control agency; 
  4.20     Commissioner of public safety; 
  4.21     Commissioner, department of public service; 
  4.22     Commissioner of revenue; 
  4.23     Commissioner of trade and economic development; 
  4.24     Commissioner of transportation; 
  4.25     Commissioner of veterans affairs; 
  4.26     Administrator of zoological gardens. 
  4.27     Subd. 4.  [GROUP II SALARY LIMITS.] The salaries for 
  4.28  full-time positions in this subdivision may not exceed 75 
  4.29  percent of the salary of the governor: 
  4.30     Ombudsman for corrections; 
  4.31     Executive director of gambling control board; 
  4.32     Commissioner of iron range resources and rehabilitation; 
  4.33     Commissioner, bureau of mediation services; 
  4.34     Ombudsman for mental health and retardation; 
  4.35     Chair, metropolitan council; 
  4.36     Executive director of pari-mutuel racing; 
  5.1      Executive director, public employees retirement 
  5.2   association; 
  5.3      Commissioner, public utilities commission; 
  5.4      Executive director, state retirement system; 
  5.5      Executive director, teachers retirement association; 
  5.6      Member, transportation regulation board. 
  5.7      Subd. 5.  [METROPOLITAN COUNCIL MEMBER SALARIES.] The 
  5.8   salary of a member of the metropolitan council is $20,000 per 
  5.9   year. 
  5.10     Subd. 6.  [LEGISLATIVE APPROVAL REQUIRED.] Before an 
  5.11  appointing authority may implement a salary increase for 
  5.12  positions in subdivisions 2 to 4, the increase must be reviewed 
  5.13  and approved, rejected, or modified by the legislative 
  5.14  commission on employee relations and the legislature under 
  5.15  section 3.855, subdivisions 2 and 3. 
  5.16     Sec. 4.  [15A.0816] [CERTIFICATION OF LOWEST PERCENTAGE 
  5.17  INCREASE.] 
  5.18     By July 1 of each year, the commissioner of employee 
  5.19  relations shall certify the lowest across the board percentage 
  5.20  increase in a collective bargaining agreement or arbitration 
  5.21  award for state employees for the fiscal year that ended on that 
  5.22  June 30.  Notwithstanding the limitations on salaries under 
  5.23  section 15A.0815, subdivisions 3 and 4, the salaries of all 
  5.24  officials listed in section 15A.0815, subdivisions 3 and 4 are 
  5.25  increased by the percentage increase certified by the 
  5.26  commissioner, effective on July 1 of the year the commissioner 
  5.27  makes the certification.  Salary increases under this section 
  5.28  are not subject to approval of the legislative commission on 
  5.29  employee relations or the full legislature. 
  5.30     Sec. 5.  Minnesota Statutes 1994, section 15A.083, 
  5.31  subdivision 5, is amended to read: 
  5.32     Subd. 5.  [TAX COURT.] Salaries of judges of the tax court 
  5.33  are the same as the base salary for district judges as set under 
  5.34  section 15A.082, subdivision 3. 
  5.35     Sec. 6.  Minnesota Statutes 1994, section 43A.17, 
  5.36  subdivision 1, is amended to read: 
  6.1      Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
  6.2   to 9, "salary" means hourly, monthly, or annual rate of pay 
  6.3   including any lump-sum payments and cost-of-living adjustment 
  6.4   increases but excluding payments due to overtime worked, shift 
  6.5   or equipment differentials, work out of class as required by 
  6.6   collective bargaining agreements or plans established under 
  6.7   section 43A.18, and back pay on reallocation or other payments 
  6.8   related to the hours or conditions under which work is performed 
  6.9   rather than to the salary range or rate to which a class is 
  6.10  assigned.  For presidents of state universities, "salary" does 
  6.11  not include a housing allowance provided through a compensation 
  6.12  plan approved under section 43A.18, subdivision 3a. 
  6.13     The salary, as established in section 15A.081 15A.0815, of 
  6.14  the head of a state agency in the executive branch is the upper 
  6.15  limit of compensation the salaries of individual employees in 
  6.16  the agency.  The salary of the commissioner of labor and 
  6.17  industry is the upper limit of compensation salaries of 
  6.18  employees in the bureau of mediation services.  However, if an 
  6.19  agency head is assigned a salary that is lower than the current 
  6.20  salary of another agency employee, the employee retains the 
  6.21  salary, but may not receive an increase in salary as long as the 
  6.22  salary is above that of the agency head.  The commissioner may 
  6.23  grant exemptions from these upper limits as provided in 
  6.24  subdivisions 3 3a and 4. 
  6.25     Sec. 7.  Minnesota Statutes 1994, section 43A.17, 
  6.26  subdivision 3, is amended to read: 
  6.27     Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 
  6.28  of the appointing authority, and when the commissioner 
  6.29  determines that changes in employment situations create 
  6.30  difficulties in attracting or retaining employees, the 
  6.31  commissioner may approve an unusual employment situation 
  6.32  increase to advance an employee within the compensation plan.  
  6.33  Such action will be consistent with applicable provisions of 
  6.34  collective bargaining agreements or plans pursuant to section 
  6.35  43A.18.  The commissioner shall review each proposal giving due 
  6.36  consideration to salary rates paid to other employees in the 
  7.1   same class and agency and may approve any request which in the 
  7.2   commissioner's judgment is in the best interest of the state. If 
  7.3   the commissioner determines that the position requires special 
  7.4   expertise necessitating a higher salary to attract or retain 
  7.5   qualified persons, the commissioner may grant an exemption not 
  7.6   to exceed 120 percent of the base salary of the head of the 
  7.7   agency.  
  7.8      Sec. 8.  Minnesota Statutes 1994, section 43A.17, is 
  7.9   amended by adding a subdivision to read: 
  7.10     Subd. 3a.  [SALARY LIMIT WAIVERS.] The commissioner may 
  7.11  increase the limitation for a position that the commissioner has 
  7.12  determined requires special expertise necessitating a higher 
  7.13  salary to attract or retain a qualified person.  The 
  7.14  commissioner shall review each proposed increase giving due 
  7.15  consideration to salary rates paid to other persons with similar 
  7.16  responsibilities in the state and nation.  The commissioner may 
  7.17  not increase the limitation until the increase has been approved 
  7.18  by the legislative commission on employee relations and the full 
  7.19  legislature under section 3.855, subdivisions 2 and 3. 
  7.20     Sec. 9.  Minnesota Statutes 1994, section 85A.02, 
  7.21  subdivision 5a, is amended to read: 
  7.22     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
  7.23  administrator who shall serve as the executive secretary and 
  7.24  principal administrative officer of the board and, subject to 
  7.25  its approval, the administrator shall operate the Minnesota 
  7.26  zoological garden and enforce all rules and policy decisions of 
  7.27  the board.  The administrator must be chosen solely on the basis 
  7.28  of training, experience, and other qualifications appropriate to 
  7.29  the field of zoo management and development.  The board shall 
  7.30  set the compensation for the administrator within the limits 
  7.31  established for the commissioner of agriculture in section 
  7.32  15A.081, subdivision 1.  The administrator shall perform duties 
  7.33  assigned by the board and shall serve in the unclassified 
  7.34  service at the pleasure of the board.  The administrator, with 
  7.35  the participation of the board, shall appoint a development 
  7.36  director in the unclassified service or contract with a 
  8.1   development consultant to establish mechanisms to foster 
  8.2   community participation in and community support for the 
  8.3   Minnesota zoological garden.  The board may employ other 
  8.4   necessary professional, technical, and clerical personnel.  
  8.5   Employees of the zoological garden are eligible for salary 
  8.6   supplement in the same manner as employees of other state 
  8.7   agencies.  The commissioner of finance shall determine the 
  8.8   amount of salary supplement based on available funds. 
  8.9      (b) The board may contract with individuals to perform 
  8.10  professional services and may contract for the purchases of 
  8.11  necessary species exhibits, supplies, services, and equipment. 
  8.12  The board may also contract for the construction and operation 
  8.13  of entertainment facilities on the zoo grounds that are not 
  8.14  directly connected to ordinary functions of the zoological 
  8.15  garden.  The zoo board shall not enter into any final agreement 
  8.16  for construction of any entertainment facility that is not 
  8.17  directly connected to the ordinary functions of the zoo until 
  8.18  after final construction plans have been submitted to the chairs 
  8.19  of the senate finance and house appropriations committees for 
  8.20  their recommendations. 
  8.21     The zoo may not contract for entertainment during the 
  8.22  period of the Minnesota state fair that would directly compete 
  8.23  with entertainment at the Minnesota state fair. 
  8.24     Sec. 10.  Minnesota Statutes 1994, section 298.22, 
  8.25  subdivision 1, is amended to read: 
  8.26     Subdivision 1.  (1) The office of commissioner of iron 
  8.27  range resources and rehabilitation is created.  The commissioner 
  8.28  shall be appointed by the governor under the provisions of 
  8.29  section 15.06. 
  8.30     (2) The commissioner may hold such other positions or 
  8.31  appointments as are not incompatible with duties as commissioner 
  8.32  of iron range resources and rehabilitation.  The commissioner 
  8.33  may appoint a deputy commissioner.  All expenses of the 
  8.34  commissioner, including the payment of such assistance as may be 
  8.35  necessary, shall be paid out of the amounts appropriated by 
  8.36  section 298.28.  The compensation of the commissioner shall be 
  9.1   set by the legislative coordinating commission and may not 
  9.2   exceed the maximum salary set for the commissioner of 
  9.3   administration under section 15A.081, subdivision 1.  
  9.4      (3) When the commissioner shall determine that distress and 
  9.5   unemployment exists or may exist in the future in any county by 
  9.6   reason of the removal of natural resources or a possibly limited 
  9.7   use thereof in the future and the decrease in employment 
  9.8   resulting therefrom, now or hereafter, the commissioner may use 
  9.9   such amounts of the appropriation made to the commissioner of 
  9.10  revenue in section 298.28 as are determined to be necessary and 
  9.11  proper in the development of the remaining resources of said 
  9.12  county and in the vocational training and rehabilitation of its 
  9.13  residents, except that the amount needed to cover cost overruns 
  9.14  awarded to a contractor by an arbitrator in relation to a 
  9.15  contract awarded by the commissioner or in effect after July 1, 
  9.16  1985, is appropriated from the general fund.  For the purposes 
  9.17  of this section, "development of remaining resources" includes, 
  9.18  but is not limited to, the promotion of tourism. 
  9.19     Sec. 11.  [COMPENSATION COUNCIL RECOMMENDATIONS.] 
  9.20     Subdivision 1.  The salaries of constitutional officers, 
  9.21  judges, and legislators are increased on January 6, 1997, by the 
  9.22  lesser of:  (1) the April 1, 1995, recommendation of the 
  9.23  compensation council to take effect in 1997; or 
  9.24     (2) the average of the across the board increases for the 
  9.25  fiscal year ending June 30, 1996, included in collective 
  9.26  bargaining agreements and arbitration awards that have been 
  9.27  ratified by the full legislature in 1996.  On July 1, 1996, the 
  9.28  commissioner of employee relations shall calculate and report to 
  9.29  the senate finance committee and the house ways and means 
  9.30  committee the average across the board increases that have been 
  9.31  ratified by the legislature in 1996.  The across the board 
  9.32  increases must be weighted by the number of full-time equivalent 
  9.33  employees covered by the contract or arbitration award for the 
  9.34  fiscal year ending June 30, 1996.  This calculation must be used 
  9.35  to determine the increases provided in this paragraph. 
  9.36     The salaries of constitutional officers, judges, and 
 10.1   legislators are increased on January 1, 1998, by the lesser of:  
 10.2   (1) the April 1, 1995, recommendation of the compensation 
 10.3   council to take effect in 1998; or 
 10.4      (2) the average of the across the board increases for the 
 10.5   fiscal year ending June 30, 1997, included in collective 
 10.6   bargaining agreements and arbitration awards that have been 
 10.7   ratified by the full legislature in 1996.  On July 1, 1996, the 
 10.8   commissioner of employee relations shall calculate and report to 
 10.9   the senate finance committee and the house ways and means 
 10.10  committee the average across the board increases that have been 
 10.11  ratified by the legislature in 1996.  The across the board 
 10.12  increases must be weighted by the number of full-time equivalent 
 10.13  employees covered by the contract or arbitration award for the 
 10.14  fiscal year ending June 30, 1996.  This calculation will be used 
 10.15  to determine the increases provided in this paragraph. 
 10.16     The recommendation dated April 1, 1995, of the compensation 
 10.17  council regarding salary increases to take effect on January 1, 
 10.18  1996, is not adopted. 
 10.19     Subd. 2.  (a) Notwithstanding any law to the contrary, the 
 10.20  salaries of administrative law judges, including the chief 
 10.21  administrative law judge, employed by the office of 
 10.22  administrative hearings, judges of the workers' compensation 
 10.23  court of appeals, and compensation judges whose salaries are set 
 10.24  under Minnesota Statutes, section 15A.083, subdivision 7, shall 
 10.25  be increased as provided in this subdivision. 
 10.26     (b) On January 6, 1997, salaries of officials specified in 
 10.27  paragraph (a) are increased by the lowest across the board 
 10.28  increase for fiscal year 1996 included in a collective 
 10.29  bargaining agreement or arbitration award for state employees 
 10.30  that has been ratified by the full legislature in 1996.  
 10.31     (c) On January 1, 1998, salaries of officials specified in 
 10.32  paragraph (a) are increased by the lowest across the board 
 10.33  increase for fiscal year 1997 included in a collective 
 10.34  bargaining agreement or arbitration award for state employees 
 10.35  that has been ratified by the full legislature in 1996.  
 10.36     (d) The commissioner of employee relations must certify the 
 11.1   across the board increases included in each contract or 
 11.2   arbitration award as it is presented to the legislative 
 11.3   commission on employee relations.  
 11.4      Sec. 12.  [REVISOR INSTRUCTION.] 
 11.5      The revisor of statutes shall substitute the reference 
 11.6   "section 15A.0815" for each reference to sections 15A.081, 
 11.7   subdivisions 1 and 7b; and 43A.18, subdivision 5, wherever they 
 11.8   occur in the next edition of Minnesota Statutes and Minnesota 
 11.9   Rules. 
 11.10     Sec. 13.  [REPEALER.] 
 11.11     Minnesota Statutes 1994, sections 15A.081, subdivisions 1 
 11.12  and 7b; and 43A.18, subdivision 5, are repealed. 
 11.13     Sec. 14.  [EFFECTIVE DATE.] 
 11.14     Section 4 is effective the day following final enactment.  
 11.15  The commissioner shall make a certification before July 1, 1995, 
 11.16  based on increases in fiscal year 1995, and salary increases for 
 11.17  officials listed in Minnesota Statutes, section 15A.0815, 
 11.18  subdivisions 3 and 4, shall take effect July 1, 1995.