1.1                          A bill for an act 
  1.2             relating to state employment; making technical and 
  1.3             administrative changes in the department of employee 
  1.4             relations; modifying provisions governing state 
  1.5             employment; requiring the commissioner of employee 
  1.6             relations' approval before certain agencies may hire 
  1.7             employees or retain consultants; creating an 
  1.8             occupational hazard identification and accident 
  1.9             prevention program; designating certain positions in 
  1.10            the department of human services as unclassified; 
  1.11            creating a medical specialist plan; modifying 
  1.12            insurance provisions for certain retired state 
  1.13            employees; authorizing the commissioner of employee 
  1.14            relations to market and self-insure dental and 
  1.15            optional coverages; allowing deductions from wages in 
  1.16            certain situations; extending certain deadlines for 
  1.17            the housing finance agency; modifying and extending 
  1.18            certain pilot projects; providing for a state ADA 
  1.19            coordinator; requiring evaluation of certain pilot 
  1.20            programs; requiring the commissioner of human services 
  1.21            to complete a study and report to the legislature; 
  1.22            amending Minnesota Statutes 1996, sections 13.67; 
  1.23            15.53, subdivision 2; 43A.04, subdivision 1; 43A.07, 
  1.24            subdivision 5; 43A.08, subdivision 1; 43A.17, 
  1.25            subdivision 4; 43A.18, by adding a subdivision; 
  1.26            43A.27, subdivision 3; and 43A.30, subdivisions 4 and 
  1.27            5; Laws 1993, chapter 301, section 1, subdivision 4; 
  1.28            Laws 1995, chapter 248, articles 12, section 2; 13, 
  1.29            section 2, subdivisions 2, 5, and 6; and section 3, 
  1.30            subdivision 2; proposing coding for new law in 
  1.31            Minnesota Statutes, chapters 15; and 43A; repealing 
  1.32            Minnesota Statutes 1996, section 43A.182; Laws 1995, 
  1.33            chapter 248, article 10, section 12. 
  1.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.35     Section 1.  Minnesota Statutes 1996, section 13.67, is 
  1.36  amended to read: 
  1.37     13.67 [EMPLOYEE RELATIONS DATA.] 
  1.38     The following data collected, created, or maintained by the 
  1.39  department of employee relations are classified as nonpublic 
  2.1   data pursuant to section 13.02, subdivision 9:  
  2.2      (a) The commissioner's plan prepared by the department, 
  2.3   pursuant to section 3.855, which governs the compensation and 
  2.4   terms and conditions of employment for employees not covered by 
  2.5   collective bargaining agreements until the plan is submitted to 
  2.6   the legislative commission on employee relations; 
  2.7      (b) Data pertaining to grievance or interest arbitration 
  2.8   that has not been presented to the arbitrator or other party 
  2.9   during the arbitration process; 
  2.10     (c) Notes and preliminary drafts of reports prepared during 
  2.11  personnel investigations and personnel management reviews of 
  2.12  state departments and agencies; 
  2.13     (d) The managerial plan prepared by the department pursuant 
  2.14  to section 43A.18 that governs the compensation and terms and 
  2.15  conditions of employment for employees in managerial positions, 
  2.16  as specified in section 43A.18, subdivision 3, until the plan is 
  2.17  submitted to the legislative commission on employee relations; 
  2.18  and 
  2.19     (e) Claims experience and all related information received 
  2.20  from carriers and claims administrators participating in either 
  2.21  the state group insurance plan, the Minnesota employee insurance 
  2.22  program, the state workers' compensation program, or the public 
  2.23  employees insurance program as defined in chapter 43A, and 
  2.24  survey information collected from employees and employers 
  2.25  participating in these plans and programs, except when the 
  2.26  department determines that release of the data will not be 
  2.27  detrimental to the plan or program. 
  2.28     Sec. 2.  [15.0594] [COMMISSIONER'S APPROVAL REQUIRED.] 
  2.29     No person may be employed or consultant retained by an 
  2.30  entity created under section 15.0593 without written approval of 
  2.31  the commissioner of the department of employee relations. 
  2.32     Sec. 3.  Minnesota Statutes 1996, section 15.53, 
  2.33  subdivision 2, is amended to read: 
  2.34     Subd. 2.  [PERIOD OF ASSIGNMENT.] The period of individual 
  2.35  assignment or detail under an interchange program shall not 
  2.36  exceed 24 months, nor shall any person be assigned or detailed 
  3.1   for more than 24 months during any 36-month period, except when 
  3.2   the assignment or detail is made to coincide with an 
  3.3   unclassified appointment under section 15.06.  However, the head 
  3.4   of an agency may extend the period of assignment for not more 
  3.5   than two additional years.  Details relating to any matter 
  3.6   covered in sections 15.51 to 15.57 may be the subject of an 
  3.7   agreement between the sending and receiving agencies.  Elected 
  3.8   officials shall not be assigned from a sending agency nor 
  3.9   detailed to a receiving agency. 
  3.10     Sec. 4.  Minnesota Statutes 1996, section 43A.04, 
  3.11  subdivision 1, is amended to read: 
  3.12     Subdivision 1.  [STATEWIDE LEADERSHIP.] (a) The 
  3.13  commissioner is the chief personnel and labor relations manager 
  3.14  of the civil service in the executive branch.  
  3.15     Whenever any power or responsibility is given to the 
  3.16  commissioner by any provision of Laws 1981, chapter 210, unless 
  3.17  otherwise expressly provided, the power or authority applies to 
  3.18  all employees of agencies in the executive branch and to 
  3.19  employees in classified positions in the office of the 
  3.20  legislative auditor, the Minnesota state retirement system, the 
  3.21  public employees retirement association, and the teacher's 
  3.22  retirement association.  Unless otherwise provided by law, the 
  3.23  power or authority does not apply to unclassified employees in 
  3.24  the legislative and judicial branches.  
  3.25     (b) The commissioner shall operate an information system 
  3.26  from which personnel data, as defined in section 13.43, 
  3.27  concerning employees and applicants for positions in the 
  3.28  classified service can be retrieved.  
  3.29     The commissioner has access to all public and private 
  3.30  personnel data kept by appointing authorities that will aid in 
  3.31  the discharge of the commissioner's duties.  
  3.32     (c) The commissioner may consider and investigate any 
  3.33  matters concerned with the administration of provisions of Laws 
  3.34  1981, chapter 210, and may order any remedial actions consistent 
  3.35  with law.  The commissioner, at the request of an agency, shall 
  3.36  provide assistance in employee misconduct investigations.  The 
  4.1   commissioner shall have the right to assess from the requesting 
  4.2   agency, any costs incurred while assisting the agency in the 
  4.3   employee misconduct investigation.  Money received by the 
  4.4   commissioner under this paragraph is appropriated to the 
  4.5   commissioner for purposes of this paragraph. 
  4.6      (d) The commissioner has sole authority to settle state 
  4.7   employee workers' compensation claims. 
  4.8      (e) The commissioner may assess or establish and collect 
  4.9   premiums from all state entities to cover the costs of programs 
  4.10  under sections 15.46 and 176.603. 
  4.11     Sec. 5.  [43A.044] [HAZARD IDENTIFICATION AND ACCIDENT 
  4.12  PREVENTION.] 
  4.13     (a) The commissioner of the department of employee 
  4.14  relations must operate a program of occupational hazard 
  4.15  identification and accident prevention for state agencies and 
  4.16  state employees, and shall provide the staff, equipment, and 
  4.17  facilities needed for the program.  The program must be offered 
  4.18  to all state agencies through the agency safety contact or other 
  4.19  designee; is consultative in nature; and must assist state 
  4.20  agencies with the goal of providing a safe work environment, 
  4.21  safe work methods, and hazard identification. 
  4.22     (b) The commissioner must cooperate with the department of 
  4.23  labor and industry, department of health, and department of 
  4.24  administration as well as other private and public community 
  4.25  agencies to assist in the objective of hazard identification and 
  4.26  accident prevention. 
  4.27     Sec. 6.  Minnesota Statutes 1996, section 43A.07, 
  4.28  subdivision 5, is amended to read: 
  4.29     Subd. 5.  [LEAVES TO ACCEPT UNCLASSIFIED APPOINTMENTS.] An 
  4.30  employee who is may be granted a leave of absence from a 
  4.31  position in the classified service to accept a position in the 
  4.32  unclassified service shall retain an inactive classified service 
  4.33  status.  Upon request, during the unclassified appointment or 
  4.34  within 60 days of the end of the unclassified appointment, the 
  4.35  employee shall be reappointed in the agency from which the 
  4.36  employee was granted the leave, to a classified position 
  5.1   comparable to that held immediately prior to being appointed to 
  5.2   the unclassified position.  
  5.3      Sec. 7.  Minnesota Statutes 1996, section 43A.08, 
  5.4   subdivision 1, is amended to read: 
  5.5      Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
  5.6   positions are held by employees who are: 
  5.7      (1) chosen by election or appointed to fill an elective 
  5.8   office; 
  5.9      (2) heads of agencies required by law to be appointed by 
  5.10  the governor or other elective officers, and the executive or 
  5.11  administrative heads of departments, bureaus, divisions, and 
  5.12  institutions specifically established by law in the unclassified 
  5.13  service; 
  5.14     (3) deputy and assistant agency heads and one confidential 
  5.15  secretary in the agencies listed in subdivision 1a and in the 
  5.16  office of strategic and long-range planning; 
  5.17     (4) the confidential secretary to each of the elective 
  5.18  officers of this state and, for the secretary of state, state 
  5.19  auditor, and state treasurer, an additional deputy, clerk, or 
  5.20  employee; 
  5.21     (5) intermittent help employed by the commissioner of 
  5.22  public safety to assist in the issuance of vehicle licenses; 
  5.23     (6) employees in the offices of the governor and of the 
  5.24  lieutenant governor and one confidential employee for the 
  5.25  governor in the office of the adjutant general; 
  5.26     (7) employees of the Washington, D.C., office of the state 
  5.27  of Minnesota; 
  5.28     (8) employees of the legislature and of legislative 
  5.29  committees or commissions; provided that employees of the 
  5.30  legislative audit commission, except for the legislative 
  5.31  auditor, the deputy legislative auditors, and their confidential 
  5.32  secretaries, shall be employees in the classified service; 
  5.33     (9) presidents, vice-presidents, deans, other managers and 
  5.34  professionals in academic and academic support programs, 
  5.35  administrative or service faculty, teachers, research 
  5.36  assistants, and student employees eligible under terms of the 
  6.1   federal economic opportunity act work study program in the 
  6.2   school and resource center for the arts, state universities and 
  6.3   community colleges, and the board of trustees of the Minnesota 
  6.4   state colleges and universities, but not the custodial, 
  6.5   clerical, or maintenance employees, or any professional or 
  6.6   managerial employee performing duties in connection with the 
  6.7   business administration of these institutions; 
  6.8      (10) officers and enlisted persons in the national guard; 
  6.9      (11) attorneys, legal assistants, and three confidential 
  6.10  employees appointed by the attorney general or employed with the 
  6.11  attorney general's authorization; 
  6.12     (12) judges and all employees of the judicial branch, 
  6.13  referees, receivers, jurors, and notaries public, except 
  6.14  referees and adjusters employed by the department of labor and 
  6.15  industry; 
  6.16     (13) members of the state patrol; provided that selection 
  6.17  and appointment of state patrol troopers must be made in 
  6.18  accordance with applicable laws governing the classified 
  6.19  service; 
  6.20     (14) chaplains employed by the state; 
  6.21     (15) examination monitors and intermittent training 
  6.22  instructors employed by the departments of employee relations 
  6.23  and commerce and by professional examining boards and 
  6.24  intermittent staff employed by the technical colleges for the 
  6.25  administration of practical skills tests and for the staging of 
  6.26  instructional demonstrations; 
  6.27     (16) student workers; 
  6.28     (17) executive directors or executive secretaries appointed 
  6.29  by and reporting to any policy-making board or commission 
  6.30  established by statute; 
  6.31     (18) employees unclassified pursuant to other statutory 
  6.32  authority; 
  6.33     (19) intermittent help employed by the commissioner of 
  6.34  agriculture to perform duties relating to pesticides, 
  6.35  fertilizer, and seed regulation; and 
  6.36     (20) the administrators and the deputy administrators at 
  7.1   the state academies for the deaf and the blind; and 
  7.2      (21) medical specialists and other physicians employed in 
  7.3   the department of human services. 
  7.4      Sec. 8.  Minnesota Statutes 1996, section 43A.17, 
  7.5   subdivision 4, is amended to read: 
  7.6      Subd. 4.  [MEDICAL SPECIALISTS.] The commissioner may 
  7.7   without regard to subdivision 1 establish special salary rates 
  7.8   and plans of compensation designed to attract and retain 
  7.9   exceptionally qualified doctors of medicine.  These rates and 
  7.10  plans shall be included in the commissioner's plan developed by 
  7.11  the commissioner pursuant to section 43A.18, subdivision 2a.  In 
  7.12  establishing salary rates and eligibility for nomination for 
  7.13  payment at special rates, the commissioner shall consider the 
  7.14  standards of eligibility established by national medical 
  7.15  specialty boards where appropriate.  The incumbents assigned to 
  7.16  these special ranges shall be excluded from the collective 
  7.17  bargaining process. 
  7.18     Sec. 9.  Minnesota Statutes 1996, section 43A.18, is 
  7.19  amended by adding a subdivision to read: 
  7.20     Subd. 2a.  [MEDICAL SPECIALIST PLAN.] Except as provided in 
  7.21  section 43A.01, the compensation, terms, and conditions of 
  7.22  employment for all classified and unclassified medical 
  7.23  specialists, who are not covered by a collective bargaining 
  7.24  agreement and not otherwise provided for in chapter 43A or other 
  7.25  law, are governed solely by a plan developed by the 
  7.26  commissioner.  The legislative coordinating commission shall 
  7.27  review and approve or reject the plan under section 3.855, 
  7.28  subdivision 2.  The plan need not be adopted in accordance with 
  7.29  the rulemaking provisions of chapter 14. 
  7.30     Sec. 10.  Minnesota Statutes 1996, section 43A.27, 
  7.31  subdivision 3, is amended to read: 
  7.32     Subd. 3.  [RETIRED EMPLOYEES.] A person may elect to 
  7.33  purchase at personal expense individual and dependent hospital, 
  7.34  medical, and dental coverages if the person is: 
  7.35     (1) a retired employee of the state or an organization 
  7.36  listed in subdivision 2 or section 43A.24, subdivision 2, who 
  8.1   receives, at separation of service: 
  8.2      (i) is immediately eligible to receive an annuity under a 
  8.3   state retirement program sponsored by the state or such 
  8.4   organization of the state and immediately meets the age and 
  8.5   service requirements in section 352.115, subdivision 1; and 
  8.6      (ii) has five years of service or meets the service 
  8.7   requirement of the collective bargaining agreement or plan, 
  8.8   whichever is greater; or 
  8.9      (2) a retired employee of the state who is at least 50 
  8.10  years of age and has at least 15 years of state service may 
  8.11  elect to purchase at personal expense individual and dependent 
  8.12  hospital, medical, and dental coverages that are.  
  8.13     The commissioner shall offer at least one plan which is 
  8.14  actuarially equivalent to those made available through 
  8.15  collective bargaining agreements or plans established pursuant 
  8.16  to section 43A.18 to employees in positions equivalent to that 
  8.17  from which retired.  A spouse of a deceased retired employee who 
  8.18  received an annuity under a state retirement program may 
  8.19  purchase the coverage listed in this subdivision if the spouse 
  8.20  was a dependent under the retired employee's coverage at the 
  8.21  time of the employee's death.  Coverages must be coordinated 
  8.22  with relevant health insurance benefits provided through the 
  8.23  federally sponsored Medicare program.  Until the retired 
  8.24  employee reaches age 65, the retired employee and dependents 
  8.25  must be pooled in the same group as active employees for 
  8.26  purposes of establishing premiums and coverage for hospital, 
  8.27  medical, and dental insurance.  Coverage for retired employees 
  8.28  and their dependents may not discriminate on the basis of 
  8.29  evidence of insurability or preexisting conditions unless 
  8.30  identical conditions are imposed on active employees in the 
  8.31  group that the employee left.  Appointing authorities shall 
  8.32  provide notice to employees no later than the effective date of 
  8.33  their retirement of the right to exercise the option provided in 
  8.34  this subdivision.  The retired employee must notify the 
  8.35  commissioner or designee of the commissioner within 30 days 
  8.36  after the effective date of the retirement of intent to exercise 
  9.1   this option. 
  9.2      Sec. 11.  Minnesota Statutes 1996, section 43A.30, 
  9.3   subdivision 4, is amended to read: 
  9.4      Subd. 4.  [EMPLOYEE INSURANCE TRUST FUND.] The commissioner 
  9.5   of employee relations may direct that all or a part of the 
  9.6   amounts paid for life insurance, hospital, medical, and dental 
  9.7   benefits, and optional coverages authorized for eligible 
  9.8   employees and other eligible persons be deposited by the state 
  9.9   in an employee insurance trust fund in the state treasury, from 
  9.10  which the approved claims of eligibles are to be paid.  
  9.11  Investment income and investment losses attributable to the 
  9.12  investment of the fund shall be credited to the fund.  There is 
  9.13  appropriated from the fund to the commissioner amounts needed to 
  9.14  pay the approved claims of eligibles, related service charges, 
  9.15  insurance premiums, and refunds.  The commissioner shall not 
  9.16  market or self-insure life insurance or optional coverages.  The 
  9.17  commissioner may market and self-insure dental and optional 
  9.18  coverages.  Nothing in this subdivision precludes the 
  9.19  commissioner from determining plan design, providing 
  9.20  informational materials, or communicating with employees about 
  9.21  coverages. 
  9.22     Sec. 12.  Minnesota Statutes 1996, section 43A.30, 
  9.23  subdivision 5, is amended to read: 
  9.24     Subd. 5.  [ADMINISTRATION.] The commissioner of employee 
  9.25  relations may administer the employee insurance program.  The 
  9.26  commissioner may assess agencies, and employers of persons 
  9.27  eligible for state-paid insurance and benefits under section 
  9.28  43A.24, the cost of these administrative services and include it 
  9.29  in the amounts billed for life insurance, hospital, medical, and 
  9.30  dental benefits, and optional coverages authorized.  Receipts 
  9.31  from the assessments must be deposited in the state treasury and 
  9.32  credited to a special account in the employee insurance trust 
  9.33  fund and are appropriated to the commissioner to pay these 
  9.34  administrative costs. 
  9.35     Sec. 13.  [43A.375] [DEDUCTION FOR EXPENSES; FRAUD OR 
  9.36  MISTAKE.] 
 10.1      If expenses are reimbursed to an employee by the employer 
 10.2   under circumstances of fraud or mistake, the expenses may be 
 10.3   deducted from wages earned by or due the employee. 
 10.4      Sec. 14.  Laws 1993, chapter 301, section 1, subdivision 4, 
 10.5   is amended to read: 
 10.6      Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
 10.7   report required by subdivision 3, each entity head shall submit 
 10.8   the list of recommended waivers to the commissioner of employee 
 10.9   relations.  The commissioner shall then grant the waivers 
 10.10  requested by each entity, effective for the requesting entity, 
 10.11  for a period ending June 30, 1997, subject to the restrictions 
 10.12  in paragraph (b) and to revision in accordance with subdivision 
 10.13  5.  These waivers are effective for the requesting entity, for a 
 10.14  period ending June 30, 1997, except the waivers granted for the 
 10.15  Minnesota housing finance agency shall extend to June 30, 1999.  
 10.16  The commissioner shall waive a rule by granting a variance under 
 10.17  Minnesota Statutes, section 14.05, subdivision 4.  
 10.18     (b) The commissioner may not grant a waiver if it would 
 10.19  result in the layoff of classified employees or unclassified 
 10.20  employees covered by a collective bargaining agreement except as 
 10.21  provided in a plan negotiated under Minnesota Statutes, chapter 
 10.22  179A, that provides options to layoff for employees who would be 
 10.23  affected.  If a proposed waiver would violate the terms of a 
 10.24  collective bargaining agreement reached under Minnesota 
 10.25  Statutes, chapter 179A, the waiver may not be granted without 
 10.26  the consent of the exclusive representative that is a party to 
 10.27  the agreement. 
 10.28     Sec. 15.  Laws 1995, chapter 248, article 12, section 2, is 
 10.29  amended to read: 
 10.30     Sec. 2.  [TERMINATION.] 
 10.31     Section 1 and the civil service pilot project in the 
 10.32  housing finance agency as authorized by Laws 1993, chapter 301, 
 10.33  terminate June 30, 1997 1999, or at any earlier time by a method 
 10.34  agreed upon by the commissioners of employee relations and 
 10.35  housing finance and the affected exclusive bargaining 
 10.36  representative of state employees. 
 11.1      Sec. 16.  Laws 1995, chapter 248, article 13, section 2, 
 11.2   subdivision 2, is amended to read: 
 11.3      Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 11.4   30, 1997 2001, the governor shall designate an executive agency 
 11.5   that will conduct a pilot civil service project.  The pilot 
 11.6   program must adhere to the policies expressed in subdivision 1 
 11.7   and in Minnesota Statutes, section 43A.01.  For the purposes of 
 11.8   conducting the pilot project, the commissioner of the designated 
 11.9   agency is exempt from the provisions that relate to employment 
 11.10  in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 
 11.11  3900, and administrative procedures and policies of the 
 11.12  department of employee relations.  If a proposed exemption from 
 11.13  the provisions that relate to employment in Minnesota Statutes, 
 11.14  chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 11.15  procedures and policies of the department of employee relations 
 11.16  would violate the terms of a collective bargaining agreement 
 11.17  effective under Minnesota Statutes, chapter 179A, the exemption 
 11.18  is not effective without the consent of the exclusive 
 11.19  representative that is a party to the agreement.  Upon request 
 11.20  of the commissioner carrying out the pilot project, the 
 11.21  commissioner of employee relations shall provide technical 
 11.22  assistance in support of the pilot project.  This section does 
 11.23  not exempt an agency from compliance with Minnesota Statutes, 
 11.24  sections 43A.19 and 43A.191, or from rules adopted to implement 
 11.25  those sections. 
 11.26     Sec. 17.  Laws 1995, chapter 248, article 13, section 2, 
 11.27  subdivision 5, is amended to read: 
 11.28     Subd. 5.  [PILOT PROJECT.] During the biennium ending June 
 11.29  30, 1997, the human resources innovation committee established 
 11.30  under Laws 1993, chapter 301, section 1, subdivision 6, 1999, 
 11.31  the department of employee relations in conjunction with union 
 11.32  representatives shall designate state job classifications to be 
 11.33  included in a one or more pilot project projects.  Under this 
 11.34  pilot project:  (1) resumes of applicants for positions to be 
 11.35  filled through a competitive open this process will be evaluated 
 11.36  through an objective computerized system that will identify 
 12.1   which applicants have the required skills; and (2) information 
 12.2   on applicants determined to have required skills will be 
 12.3   forwarded to the agency seeking to fill a vacancy, without 
 12.4   ranking these applicants, and without a limit on the number of 
 12.5   applicants that may be forwarded to the hiring agency.  Laws or 
 12.6   rules that govern examination, ranking of eligibles, and 
 12.7   certification of eligibles for competitive open positions do not 
 12.8   apply to those job classifications included in the pilot 
 12.9   project.  This process is in lieu of the procedures provided in 
 12.10  Minnesota Statutes, sections 43A.10 to 43A.13, and related rules 
 12.11  and procedures adopted under Minnesota Statutes, section 43A.04, 
 12.12  subdivision 4, except that applicants who are being referred and 
 12.13  who qualify for veterans preference under Minnesota Statutes, 
 12.14  section 43A.11, will be placed ahead of referrals who meet the 
 12.15  required skills of the vacant position and who do not qualify 
 12.16  for veterans preference.  Before designating a job 
 12.17  classification under this subdivision, the committee department 
 12.18  must assure that the hiring process for those job 
 12.19  classifications complies with the policies in subdivision 1.  
 12.20     Sec. 18.  Laws 1995, chapter 248, article 13, section 2, 
 12.21  subdivision 6, is amended to read: 
 12.22     Subd. 6.  [EVALUATION.] The commissioner of employee 
 12.23  relations, in consultation with the human resources innovation 
 12.24  committee union representatives, shall design and implement a 
 12.25  system for evaluating the success of the pilot project in 
 12.26  subdivision 5.  By October 1, 1996 1997, and October 1, 1997 
 12.27  1998, the commissioner must report to the legislature on the 
 12.28  pilot project.  The report must:  
 12.29     (1) list job classifications subject to the each pilot 
 12.30  project, and the number of positions filled under in these job 
 12.31  classes under the pilot; 
 12.32     (2) evaluate the extent to which the project has been 
 12.33  successful in maintaining a merit-based system in the absence of 
 12.34  traditional civil service laws and rules; 
 12.35     (3) quantify time and money saved in the hiring process 
 12.36  under the these pilot project projects, as compared to hiring 
 13.1   under the traditional laws and rules; 
 13.2      (4) document the extent of complaints or problems arising 
 13.3   under the new system; and 
 13.4      (5) recommend any changes in laws or rules needed to make 
 13.5   permanent the successes of the pilot project projects. 
 13.6      Sec. 19.  Laws 1995, chapter 248, article 13, section 3, 
 13.7   subdivision 2, is amended to read: 
 13.8      Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 13.9   30, 1997, the department of employee relations must implement a 
 13.10  system of incentives including economic incentives for 
 13.11  unrepresented employees for or groups of unrepresented employees 
 13.12  in the department.  The system must be approved by the 
 13.13  commissioner of finance before being implemented.  The system 
 13.14  must have the following characteristics: 
 13.15     (1) it must provide nonmanagerial unrepresented employees 
 13.16  or groups of employees within the agency the possibility of 
 13.17  earning economic rewards by suggesting changes in operation of 
 13.18  the department's programs; 
 13.19     (2) it must provide nonmanagerial represented employees 
 13.20  within the agency the possibility of receiving individual or 
 13.21  group economic rewards, if provided in a collective bargaining 
 13.22  agreement, for suggesting changes in the operation of the 
 13.23  department's programs; 
 13.24     (3) it must provide groups of nonmanagerial represented 
 13.25  employees within the agency the possibility of receiving group 
 13.26  rewards in the form of training opportunities, filling of 
 13.27  unfilled employee complement, or other resources that benefit 
 13.28  overall group performance; 
 13.29     (4) any economic awards must be based on changes in 
 13.30  operations suggested by nonmanagerial employees or groups of 
 13.31  employees that result in objectively measurable cost savings of 
 13.32  at least $25,000 or significant and objectively measurable 
 13.33  efficiencies in services that the agency provides to its 
 13.34  customers or clients, without decreasing the quality of these 
 13.35  services; 
 13.36     (5) awards must be a minimum of $500 up to a maximum of 
 14.1   $2,500 per year to unrepresented nonmanagerial employees or 
 14.2   groups of employees who were instrumental in identifying and/or 
 14.3   implementing the efficiency and cost-saving measures; 
 14.4      (6) an "efficiency savings account" must be created within 
 14.5   each fund that is used to provide money for department 
 14.6   services.  Each account consists of money saved directly as a 
 14.7   result of initiatives under this section.  Any awards under this 
 14.8   article must be paid from money in an efficiency savings 
 14.9   account.  One-half of the money in the account may be used for 
 14.10  awards under this section, and the remainder must be returned to 
 14.11  the fund from which the money was appropriated; 
 14.12     (7) no award shall be given except upon approval of a team 
 14.13  comprised of equal numbers of management and nonmanagement 
 14.14  employees selected by the commissioner of employee relations 
 14.15  from state employees outside of the department; and 
 14.16     (8) the economic awards granted to unrepresented employees 
 14.17  must be one-time awards in the form of a lump sum award, and 
 14.18  must not add to the base salary of employees. 
 14.19     Sec. 20.  [AMERICANS WITH DISABILITIES ACT COORDINATOR.] 
 14.20     The commissioner shall designate a state ADA coordinator 
 14.21  who will have primary responsibility for providing training and 
 14.22  technical assistance to agencies on the provisions of titles I 
 14.23  and II of the Americans with Disability Act, Public Law Number 
 14.24  101-336, and Minnesota Statutes, chapter 363.  The ADA 
 14.25  coordinator will establish monitoring procedures and reports of 
 14.26  progress to the governor's office on no less than a biennial 
 14.27  basis. 
 14.28     The ADA coordinator will work with the state director of 
 14.29  diversity and equal opportunity on the establishment of 
 14.30  affirmative action goals for persons with disabilities in 
 14.31  accordance with Minnesota Statutes, section 43A.19, subdivision 
 14.32  1, paragraph (b), and the review and approval of agency 
 14.33  affirmative action plans consistent with Minnesota Statutes, 
 14.34  sections 43A.04, subdivision 3, and 43A.191, subdivision 1. 
 14.35     Sec. 21.  [HUMAN RESOURCES SYSTEM.] 
 14.36     Subdivision 1.  [PILOT PROJECT.] The pilot program 
 15.1   established in the department of human services by Laws 1994, 
 15.2   chapter 453, section 1, is continued and amended as described in 
 15.3   this section.  The pilot program must adhere to the policies 
 15.4   expressed in this subdivision and in Minnesota Statutes, section 
 15.5   43A.01.  For the purposes of conducting the expanded pilot 
 15.6   project, the commissioner of human services is exempt from the 
 15.7   provisions that relate to employment in Minnesota Statutes, 
 15.8   chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 15.9   procedures and policies of the department of employee 
 15.10  relations.  If a proposed exemption from the provisions that 
 15.11  relate to employment in Minnesota Statutes, chapter 43A, 
 15.12  Minnesota Rules, chapter 3900, and administrative procedures and 
 15.13  policies of the department of employee relations would violate 
 15.14  the terms of a collective bargaining agreement effective under 
 15.15  Minnesota Statutes, chapter 179A, the exemption is not effective 
 15.16  without the consent of the exclusive representative that is a 
 15.17  party to the agreement.  The labor-management committee 
 15.18  established by Laws 1994, chapter 453, section 1, shall 
 15.19  continue.  The committee membership may be expanded as long as 
 15.20  an equal number of labor and management representatives is 
 15.21  maintained.  A proposed exemption may not be implemented without 
 15.22  the approval of the labor-management committee unless it affects 
 15.23  only managerial or other unrepresented positions.  Upon request 
 15.24  of the commissioner of human services, and subject to the 
 15.25  availability of resources, the commissioner of employee 
 15.26  relations may provide technical assistance in support of the 
 15.27  pilot project and may request reimbursement for the reasonable 
 15.28  cost of any services provided.  This section does not exempt the 
 15.29  department of human services from compliance with Minnesota 
 15.30  Statutes, sections 43A.19 and 43A.191, or from rules adopted to 
 15.31  implement those sections. 
 15.32     Subd. 2.  [EVALUATION.] The department of human services 
 15.33  shall evaluate the pilot program.  The evaluation shall include 
 15.34  at least the following factors:  
 15.35     (1) the extent to which the department of human services 
 15.36  has been successful in maintaining a merit-based human resources 
 16.1   system in the absence of the traditional civil service rules and 
 16.2   procedures; 
 16.3      (2) the extent to which the project's projected outcomes 
 16.4   were achieved; 
 16.5      (3) the satisfaction of managers, supervisors, and 
 16.6   exclusive representatives of employees with the changes; and 
 16.7      (4) the extent of complaints or problems arising under the 
 16.8   new system.  
 16.9      The department of human services must report to the 
 16.10  legislature by January 15, 1999, January 15, 2000, and January 
 16.11  15, 2001, on the progress and results of the project. 
 16.12     Sec. 22.  [STUDY OF STATE HIRING OPTIONS.] 
 16.13     The commissioner of human services shall study and report 
 16.14  to the legislature by January 15, 1998, with recommendations to 
 16.15  expand employment opportunities for public assistance recipients 
 16.16  in state agencies and institutions of higher education.  The 
 16.17  report may include recommendations on: 
 16.18     (1) giving qualified applicants who are recipients of 
 16.19  public assistance preference in hiring; and 
 16.20     (2) other recommendations developed by the commissioner in 
 16.21  consultation with other state agencies and institutions of 
 16.22  higher education. 
 16.23     Sec. 23.  [REPEALER.] 
 16.24     Minnesota Statutes 1996, section 43A.182; and Laws 1995, 
 16.25  chapter 248, article 10, section 12, are repealed.