1.1                          A bill for an act 
  1.2             relating to public employment; regulating 
  1.3             compensation; providing limits; prohibiting severance 
  1.4             pay for elected officials; providing appointments; 
  1.5             amending Minnesota Statutes 1994, section 43A.17, 
  1.6             subdivision 9; proposing coding for new law in 
  1.7             Minnesota Statutes, chapters 15; and 465. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [15.99] [CONSULTANT COMPENSATION LIMIT.] 
  1.10     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  1.11     (1) "compensation" is as defined in section 43A.17, 
  1.12  subdivision 9; 
  1.13     (2) "political subdivision" includes a statutory or home 
  1.14  rule charter city, county, town, school district, metropolitan 
  1.15  or regional agency, or other political subdivision of the state; 
  1.16  and 
  1.17     (3) "consultant services" and "professional and technical 
  1.18  services" have the meanings defined in section 16B.17, 
  1.19  subdivision 1. 
  1.20     Subd. 2.  [LIMITS.] The salary and the value of all other 
  1.21  forms of compensation of any person providing services to a 
  1.22  state agency or a political subdivision under a contract for 
  1.23  consultant services or professional and technical services may 
  1.24  not exceed 95 percent of the salary of the chief executive of 
  1.25  the state agency or political subdivision issuing the contract.  
  1.26  If the compensation to be received under a contract is expressed 
  2.1   as an hourly, daily, or other rate, this compensation must be 
  2.2   annualized to determine if it comes within the limit of this 
  2.3   subdivision.  The limit of this section applies only to that 
  2.4   portion of a contractual payment that is for employee salary and 
  2.5   other employee compensation. 
  2.6      Sec. 2.  Minnesota Statutes 1994, section 43A.17, 
  2.7   subdivision 9, is amended to read: 
  2.8      Subd. 9.  [POLITICAL SUBDIVISION COMPENSATION LIMIT.] (a) 
  2.9   The salary and the value of all other forms of compensation of a 
  2.10  person employed by a statutory or home rule charter city, 
  2.11  county, town, school district, metropolitan or regional agency, 
  2.12  or other political subdivision of this state, or employed under 
  2.13  section 422A.03, may not exceed 95 percent of the salary of the 
  2.14  governor as set under section 15A.082, except as provided in 
  2.15  this subdivision.  
  2.16     (b) The salary and the value of all other forms of 
  2.17  compensation of a person elected as or employed as an attorney 
  2.18  by a statutory or home rule charter city, county, metropolitan 
  2.19  or regional agency, or other political subdivision of this 
  2.20  state, may not exceed 95 percent of the salary of the attorney 
  2.21  general as set under section 15A.082.  The salary and the value 
  2.22  of all other forms of compensation of an elected county sheriff 
  2.23  may not exceed the salary of the commissioner of public safety.  
  2.24  The salary and the value of all other forms of compensation of 
  2.25  any other person serving as an elected official of or employed 
  2.26  by a statutory or home rule charter city, county, metropolitan 
  2.27  or regional agency, or other political subdivision of this 
  2.28  state, or employed under section 422A.03, may not exceed the 
  2.29  salary of the commissioner of finance, except as provided in 
  2.30  this subdivision.  
  2.31     (c) No elected city or county official may receive an 
  2.32  increase in salary during the term for which the person was 
  2.33  elected. 
  2.34     (d) Deferred compensation and payroll allocations to 
  2.35  purchase an individual annuity contract for an employee or 
  2.36  elected local government official are included in determining 
  3.1   the employee's or elected official's salary. 
  3.2      (e) Other forms of compensation which shall be included to 
  3.3   determine an employee's total compensation are all other direct 
  3.4   and indirect items of compensation which are not specifically 
  3.5   excluded by this subdivision. 
  3.6      (f) Other forms of compensation which shall not be included 
  3.7   in a determination of an employee's total compensation for the 
  3.8   purposes of this subdivision are: 
  3.9      (1) employee benefits that are also provided for the 
  3.10  majority of all other full-time employees of the political 
  3.11  subdivision, vacation and sick leave allowances, health and 
  3.12  dental insurance, disability insurance, term life insurance, and 
  3.13  pension benefits or like benefits the cost of which is borne by 
  3.14  the employee or which is not subject to tax as income under the 
  3.15  Internal Revenue Code of 1986; 
  3.16     (2) dues paid to organizations that are of a civic, 
  3.17  professional, educational, or governmental nature; and 
  3.18     (3) reimbursement for actual expenses incurred by the 
  3.19  employee which the governing body determines to be directly 
  3.20  related to the performance of job responsibilities, including 
  3.21  any relocation expenses paid during the initial year of 
  3.22  employment. 
  3.23     (g) The value of other forms of compensation shall be the 
  3.24  annual cost to the political subdivision for the provision of 
  3.25  the compensation.  
  3.26     (h) The salary of a medical doctor or doctor of osteopathy 
  3.27  occupying a position that the governing body of the political 
  3.28  subdivision has determined requires an M.D. or D.O. degree is 
  3.29  excluded from the limitation in this subdivision.  The governor 
  3.30  shall appoint a three-person board to make decisions on proposed 
  3.31  increases under this paragraph.  The members of the board must 
  3.32  be from the private sector and must have expertise in employee 
  3.33  compensation matters.  Membership terms and removal of the 
  3.34  members of the board are as provided in section 15.0575.  
  3.35  Members of the board do not receive compensation or expense 
  3.36  reimbursement.  The commissioner board may increase the 
  4.1   limitation in this subdivision for a position that 
  4.2   the commissioner board has determined requires special expertise 
  4.3   necessitating a higher salary to attract or retain a qualified 
  4.4   person.  The commissioner board shall review each proposed 
  4.5   increase giving due consideration to salary rates paid to other 
  4.6   persons with similar responsibilities in the state and 
  4.7   nation.  The commissioner may not increase the limitation until 
  4.8   the commissioner has presented the proposed increase to the 
  4.9   legislative commission on employee relations and received the 
  4.10  commission's recommendation on it.  The recommendation is 
  4.11  advisory only.  If the commission does not give its 
  4.12  recommendation on a proposed increase within 30 days from its 
  4.13  receipt of the proposal, the commission is deemed to have 
  4.14  recommended approval.  The board must make a decision on a 
  4.15  proposed increase within ten days after the proposed increase is 
  4.16  submitted to the board. 
  4.17     Sec. 3.  [465.7215] [NO SEVERANCE PAY FOR ELECTED 
  4.18  OFFICIALS.] 
  4.19     An elected official of a statutory or home rule charter 
  4.20  city, county, town, school district, or other political 
  4.21  subdivision may not receive: 
  4.22     (1) severance pay; or 
  4.23     (2) any additional compensation as an incentive for leaving 
  4.24  office before expiration of the person's term. 
  4.25  For purposes of this section, "severance pay" has the meaning 
  4.26  defined in section 465.722, subdivision 2. 
  4.27     Sec. 4.  [APPLICABILITY.] 
  4.28     A person who is earning compensation above the limit 
  4.29  prescribed in section 2 must not have compensation reduced 
  4.30  because of section 2.  However, such a person may not receive an 
  4.31  increase in compensation that is covered by section 2 until the 
  4.32  person's compensation is below the limit prescribed in section 
  4.33  2.  Any compensation increase granted after February 7, 1995, 
  4.34  that is above the limit prescribed in section 2 is nullified on 
  4.35  the effective date of section 2. 
  4.36     Sec. 5.  [EFFECTIVE DATE.] 
  5.1      Section 2 is effective the day following final enactment, 
  5.2   and applies retroactively to February 7, 1995.  Sections 3 and 4 
  5.3   are effective the day after final enactment.  Section 3 applies 
  5.4   to officials who leave office after that date.