1.1                          A bill for an act
  1.2             relating to employment; making technical and 
  1.3             administrative changes in the department of employee 
  1.4             relations; modifying provisions governing state 
  1.5             employment; modifying terms of certain pilot projects; 
  1.6             requiring a study and report; amending Minnesota 
  1.7             Statutes 1996, sections 13.67; 15.53, subdivision 2; 
  1.8             43A.04, subdivision 1; 43A.07, subdivision 5; 43A.08, 
  1.9             subdivision 1; 43A.17, subdivision 4; 43A.18, by 
  1.10            adding a subdivision; 43A.27, subdivision 3; 43A.30, 
  1.11            subdivisions 4 and 5; and 352D.02, subdivision 1; Laws 
  1.12            1993, chapter 301, section 1, subdivision 4; and Laws 
  1.13            1995, chapter 248, articles 12, section 2; and 13, 
  1.14            sections 2, subdivisions 2, 5, and 6; and 3, 
  1.15            subdivision 2; proposing coding for new law in 
  1.16            Minnesota Statutes, chapters 15; and 43A; repealing 
  1.17            Minnesota Statutes 1996, section 43A.182; and Laws 
  1.18            1995, chapter 248, article 10, section 12. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1996, section 13.67, is 
  1.21  amended to read: 
  1.22     13.67 [EMPLOYEE RELATIONS DATA.] 
  1.23     The following data collected, created, or maintained by the 
  1.24  department of employee relations are classified as nonpublic 
  1.25  data pursuant to section 13.02, subdivision 9:  
  1.26     (a) The commissioner's plan prepared by the department, 
  1.27  pursuant to section 3.855, which governs the compensation and 
  1.28  terms and conditions of employment for employees not covered by 
  1.29  collective bargaining agreements until the plan is submitted to 
  1.30  the legislative commission on employee relations; 
  1.31     (b) Data pertaining to grievance or interest arbitration 
  1.32  that has not been presented to the arbitrator or other party 
  2.1   during the arbitration process; 
  2.2      (c) Notes and preliminary drafts of reports prepared during 
  2.3   personnel investigations and personnel management reviews of 
  2.4   state departments and agencies; 
  2.5      (d) The managerial plan prepared by the department pursuant 
  2.6   to section 43A.18 that governs the compensation and terms and 
  2.7   conditions of employment for employees in managerial positions, 
  2.8   as specified in section 43A.18, subdivision 3, until the plan is 
  2.9   submitted to the legislative commission on employee relations; 
  2.10  and 
  2.11     (e) Claims experience and all related information received 
  2.12  from carriers and claims administrators participating in either 
  2.13  the state group insurance plan, the Minnesota employee insurance 
  2.14  program, the state workers' compensation program, or the public 
  2.15  employees insurance program as defined in chapter 43A, and 
  2.16  survey information collected from employees and employers 
  2.17  participating in these plans and programs, except when the 
  2.18  department determines that release of the data will not be 
  2.19  detrimental to the plan or program. 
  2.20     Sec. 2.  Minnesota Statutes 1996, section 15.53, 
  2.21  subdivision 2, is amended to read: 
  2.22     Subd. 2.  [PERIOD OF ASSIGNMENT.] The period of individual 
  2.23  assignment or detail under an interchange program shall not 
  2.24  exceed 24 months, nor shall any person be assigned or detailed 
  2.25  for more than 24 months during any 36-month period, except when 
  2.26  the assignment or detail is made to coincide with an 
  2.27  unclassified appointment under section 15.06.  However, the head 
  2.28  of an agency may extend the period of assignment for not more 
  2.29  than two additional years.  Details relating to any matter 
  2.30  covered in sections 15.51 to 15.57 may be the subject of an 
  2.31  agreement between the sending and receiving agencies.  Elected 
  2.32  officials shall not be assigned from a sending agency nor 
  2.33  detailed to a receiving agency. 
  2.34     Sec. 3.  [15.094] [COMMISSIONER'S APPROVAL REQUIRED.] 
  2.35     No person may be employed or consultant retained by an 
  2.36  entity created under section 15.0575, 15.059, or 15.0593 without 
  3.1   written approval of the commissioner of the department of 
  3.2   employee relations. 
  3.3      Sec. 4.  Minnesota Statutes 1996, section 43A.04, 
  3.4   subdivision 1, is amended to read: 
  3.5      Subdivision 1.  [STATEWIDE LEADERSHIP.] (a) The 
  3.6   commissioner is the chief personnel and labor relations manager 
  3.7   of the civil service in the executive branch.  
  3.8      Whenever any power or responsibility is given to the 
  3.9   commissioner by any provision of Laws 1981, chapter 210, unless 
  3.10  otherwise expressly provided, the power or authority applies to 
  3.11  all employees of agencies in the executive branch and to 
  3.12  employees in classified positions in the office of the 
  3.13  legislative auditor, the Minnesota state retirement system, the 
  3.14  public employees retirement association, and the teacher's 
  3.15  retirement association.  Unless otherwise provided by law, the 
  3.16  power or authority does not apply to unclassified employees in 
  3.17  the legislative and judicial branches.  
  3.18     (b) The commissioner shall operate an information system 
  3.19  from which personnel data, as defined in section 13.43, 
  3.20  concerning employees and applicants for positions in the 
  3.21  classified service can be retrieved.  
  3.22     The commissioner has access to all public and private 
  3.23  personnel data kept by appointing authorities that will aid in 
  3.24  the discharge of the commissioner's duties.  
  3.25     (c) The commissioner may consider and investigate any 
  3.26  matters concerned with the administration of provisions of Laws 
  3.27  1981, chapter 210, and may order any remedial actions consistent 
  3.28  with law.  The commissioner, at the request of an agency, shall 
  3.29  provide assistance in employee misconduct investigations.  The 
  3.30  commissioner shall have the right to assess from the requesting 
  3.31  agency, any costs incurred while assisting the agency in the 
  3.32  employee misconduct investigation.  Money received by the 
  3.33  commissioner under this paragraph is appropriated to the 
  3.34  commissioner for purposes of this paragraph. 
  3.35     (d) The commissioner has sole authority to settle state 
  3.36  employee workers' compensation claims. 
  4.1      (e) The commissioner may assess or establish and collect 
  4.2   premiums from all state entities to cover the costs of programs 
  4.3   under sections 15.46 and 176.603. 
  4.4      Sec. 5.  [43A.044] [HAZARD IDENTIFICATION AND ACCIDENT 
  4.5   PREVENTION.] 
  4.6      (a) The commissioner of the department of employee 
  4.7   relations must operate a program of occupational hazard 
  4.8   identification and accident prevention for state agencies and 
  4.9   state employees, and shall provide the staff, equipment, and 
  4.10  facilities needed for the program.  The program must be offered 
  4.11  to all state agencies through the agency safety contact or other 
  4.12  designee; is consultative in nature; and must assist state 
  4.13  agencies with the goal of providing a safe work environment, 
  4.14  safe work methods, and hazard identification. 
  4.15     (b) The commissioner must cooperate with the department of 
  4.16  labor and industry, department of health, and department of 
  4.17  administration as well as other private and public community 
  4.18  agencies to assist in the objective of hazard identification and 
  4.19  accident prevention. 
  4.20     Sec. 6.  Minnesota Statutes 1996, section 43A.07, 
  4.21  subdivision 5, is amended to read: 
  4.22     Subd. 5.  [LEAVES TO ACCEPT UNCLASSIFIED APPOINTMENTS.] An 
  4.23  employee who is may be granted a leave of absence from a 
  4.24  position in the classified service to accept a position in the 
  4.25  unclassified service shall retain an inactive classified service 
  4.26  status.  Upon request, during the unclassified appointment or 
  4.27  within 60 days of the end of the unclassified appointment, the 
  4.28  employee shall be reappointed in the agency from which the 
  4.29  employee was granted the leave, to a classified position 
  4.30  comparable to that held immediately prior to being appointed to 
  4.31  the unclassified position.  
  4.32     Sec. 7.  Minnesota Statutes 1996, section 43A.08, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
  4.35  positions are held by employees who are: 
  4.36     (1) chosen by election or appointed to fill an elective 
  5.1   office; 
  5.2      (2) heads of agencies required by law to be appointed by 
  5.3   the governor or other elective officers, and the executive or 
  5.4   administrative heads of departments, bureaus, divisions, and 
  5.5   institutions specifically established by law in the unclassified 
  5.6   service; 
  5.7      (3) deputy and assistant agency heads and one confidential 
  5.8   secretary in the agencies listed in subdivision 1a and in the 
  5.9   office of strategic and long-range planning; 
  5.10     (4) the confidential secretary to each of the elective 
  5.11  officers of this state and, for the secretary of state, state 
  5.12  auditor, and state treasurer, an additional deputy, clerk, or 
  5.13  employee; 
  5.14     (5) intermittent help employed by the commissioner of 
  5.15  public safety to assist in the issuance of vehicle licenses; 
  5.16     (6) employees in the offices of the governor and of the 
  5.17  lieutenant governor and one confidential employee for the 
  5.18  governor in the office of the adjutant general; 
  5.19     (7) employees of the Washington, D.C., office of the state 
  5.20  of Minnesota; 
  5.21     (8) employees of the legislature and of legislative 
  5.22  committees or commissions; provided that employees of the 
  5.23  legislative audit commission, except for the legislative 
  5.24  auditor, the deputy legislative auditors, and their confidential 
  5.25  secretaries, shall be employees in the classified service; 
  5.26     (9) presidents, vice-presidents, deans, other managers and 
  5.27  professionals in academic and academic support programs, 
  5.28  administrative or service faculty, teachers, research 
  5.29  assistants, and student employees eligible under terms of the 
  5.30  federal economic opportunity act work study program in the 
  5.31  school and resource center for the arts, state universities and 
  5.32  community colleges, and the board of trustees of the Minnesota 
  5.33  state colleges and universities, but not the custodial, 
  5.34  clerical, or maintenance employees, or any professional or 
  5.35  managerial employee performing duties in connection with the 
  5.36  business administration of these institutions; 
  6.1      (10) officers and enlisted persons in the national guard; 
  6.2      (11) attorneys, legal assistants, and three confidential 
  6.3   employees appointed by the attorney general or employed with the 
  6.4   attorney general's authorization; 
  6.5      (12) judges and all employees of the judicial branch, 
  6.6   referees, receivers, jurors, and notaries public, except 
  6.7   referees and adjusters employed by the department of labor and 
  6.8   industry; 
  6.9      (13) members of the state patrol; provided that selection 
  6.10  and appointment of state patrol troopers must be made in 
  6.11  accordance with applicable laws governing the classified 
  6.12  service; 
  6.13     (14) chaplains employed by the state; 
  6.14     (15) examination monitors and intermittent training 
  6.15  instructors employed by the departments of employee relations 
  6.16  and commerce and by professional examining boards and 
  6.17  intermittent staff employed by the technical colleges for the 
  6.18  administration of practical skills tests and for the staging of 
  6.19  instructional demonstrations; 
  6.20     (16) student workers; 
  6.21     (17) executive directors or executive secretaries appointed 
  6.22  by and reporting to any policy-making board or commission 
  6.23  established by statute; 
  6.24     (18) employees unclassified pursuant to other statutory 
  6.25  authority; 
  6.26     (19) intermittent help employed by the commissioner of 
  6.27  agriculture to perform duties relating to pesticides, 
  6.28  fertilizer, and seed regulation; and 
  6.29     (20) the administrators and the deputy administrators at 
  6.30  the state academies for the deaf and the blind; and 
  6.31     (21) medical specialists and other physicians employed in 
  6.32  the department of human services. 
  6.33     Sec. 8.  Minnesota Statutes 1996, section 43A.17, 
  6.34  subdivision 4, is amended to read: 
  6.35     Subd. 4.  [MEDICAL SPECIALISTS.] The commissioner may 
  6.36  without regard to subdivision 1 establish special salary rates 
  7.1   and plans of compensation designed to attract and retain 
  7.2   exceptionally qualified doctors of medicine.  These rates and 
  7.3   plans shall be included in the commissioner's plan developed by 
  7.4   the commissioner pursuant to section 43A.18, subdivision 2a.  In 
  7.5   establishing salary rates and eligibility for nomination for 
  7.6   payment at special rates, the commissioner shall consider the 
  7.7   standards of eligibility established by national medical 
  7.8   specialty boards where appropriate.  The incumbents assigned to 
  7.9   these special ranges shall be excluded from the collective 
  7.10  bargaining process. 
  7.11     Sec. 9.  Minnesota Statutes 1996, section 43A.18, is 
  7.12  amended by adding a subdivision to read: 
  7.13     Subd. 2a.  [MEDICAL SPECIALIST PLAN.] Except as provided in 
  7.14  section 43A.01, the compensation, terms, and conditions of 
  7.15  employment for all classified and unclassified medical 
  7.16  specialists, who are not covered by a collective bargaining 
  7.17  agreement and not otherwise provided for in chapter 43A or other 
  7.18  law, are governed solely by a plan developed by the 
  7.19  commissioner.  The legislative coordinating commission shall 
  7.20  review and approve or reject the plan under section 3.855, 
  7.21  subdivision 2.  The plan need not be adopted in accordance with 
  7.22  the rulemaking provisions of chapter 14. 
  7.23     Sec. 10.  Minnesota Statutes 1996, section 43A.27, 
  7.24  subdivision 3, is amended to read: 
  7.25     Subd. 3.  [RETIRED EMPLOYEES.] A person may elect to 
  7.26  purchase at personal expense individual and dependent hospital, 
  7.27  medical, and dental coverages if the person is: 
  7.28     (1) a retired employee of the state or an organization 
  7.29  listed in subdivision 2 or section 43A.24, subdivision 2, who 
  7.30  receives, at separation of service: 
  7.31     (i) is immediately eligible to receive an annuity under a 
  7.32  state retirement program sponsored by the state or such 
  7.33  organization of the state and immediately meets the age and 
  7.34  service requirements in section 352.115, subdivision 1; and 
  7.35     (ii) has five years of service or meets the service 
  7.36  requirement of the collective bargaining agreement or plan, 
  8.1   whichever is greater; or 
  8.2      (2) a retired employee of the state who is at least 50 
  8.3   years of age and has at least 15 years of state service may 
  8.4   elect to purchase at personal expense individual and dependent 
  8.5   hospital, medical, and dental coverages that are.  
  8.6      The commissioner shall offer at least one plan which is 
  8.7   actuarially equivalent to those made available through 
  8.8   collective bargaining agreements or plans established pursuant 
  8.9   to section 43A.18 to employees in positions equivalent to that 
  8.10  from which retired.  A spouse of a deceased retired employee who 
  8.11  received an annuity under a state retirement program may 
  8.12  purchase the coverage listed in this subdivision if the spouse 
  8.13  was a dependent under the retired employee's coverage at the 
  8.14  time of the employee's death.  Coverages must be coordinated 
  8.15  with relevant health insurance benefits provided through the 
  8.16  federally sponsored Medicare program.  Until the retired 
  8.17  employee reaches age 65, the retired employee and dependents 
  8.18  must be pooled in the same group as active employees for 
  8.19  purposes of establishing premiums and coverage for hospital, 
  8.20  medical, and dental insurance.  Coverage for retired employees 
  8.21  and their dependents may not discriminate on the basis of 
  8.22  evidence of insurability or preexisting conditions unless 
  8.23  identical conditions are imposed on active employees in the 
  8.24  group that the employee left.  Appointing authorities shall 
  8.25  provide notice to employees no later than the effective date of 
  8.26  their retirement of the right to exercise the option provided in 
  8.27  this subdivision.  The retired employee must notify the 
  8.28  commissioner or designee of the commissioner within 30 days 
  8.29  after the effective date of the retirement of intent to exercise 
  8.30  this option. 
  8.31     Sec. 11.  Minnesota Statutes 1996, section 43A.30, 
  8.32  subdivision 4, is amended to read: 
  8.33     Subd. 4.  [EMPLOYEE INSURANCE TRUST FUND.] The commissioner 
  8.34  of employee relations may direct that all or a part of the 
  8.35  amounts paid for life insurance, hospital, medical, and dental 
  8.36  benefits, and optional coverages authorized for eligible 
  9.1   employees and other eligible persons be deposited by the state 
  9.2   in an employee insurance trust fund in the state treasury, from 
  9.3   which the approved claims of eligibles are to be paid.  
  9.4   Investment income and investment losses attributable to the 
  9.5   investment of the fund shall be credited to the fund.  There is 
  9.6   appropriated from the fund to the commissioner amounts needed to 
  9.7   pay the approved claims of eligibles, related service charges, 
  9.8   insurance premiums, and refunds.  The commissioner shall not 
  9.9   market or self-insure life insurance or optional coverages.  The 
  9.10  commissioner may market and self-insure dental and optional 
  9.11  coverages.  Nothing in this subdivision precludes the 
  9.12  commissioner from determining plan design, providing 
  9.13  informational materials, or communicating with employees about 
  9.14  coverages. 
  9.15     Sec. 12.  Minnesota Statutes 1996, section 43A.30, 
  9.16  subdivision 5, is amended to read: 
  9.17     Subd. 5.  [ADMINISTRATION.] The commissioner of employee 
  9.18  relations may administer the employee insurance program.  The 
  9.19  commissioner may assess agencies, and employers of persons 
  9.20  eligible for state-paid insurance and benefits under section 
  9.21  43A.24, the cost of these administrative services and include it 
  9.22  in the amounts billed for life insurance, hospital, medical, and 
  9.23  dental benefits, and optional coverages authorized.  Receipts 
  9.24  from the assessments must be deposited in the state treasury and 
  9.25  credited to a special account in the employee insurance trust 
  9.26  fund and are appropriated to the commissioner to pay these 
  9.27  administrative costs. 
  9.28     Sec. 13.  [43A.375] [DEDUCTION FOR EXPENSES; FRAUD OR 
  9.29  MISTAKE.] 
  9.30     If expenses are reimbursed to an employee by the employer 
  9.31  under circumstances of fraud or mistake, the expenses may be 
  9.32  deducted from wages earned by or due the employee. 
  9.33     Sec. 14.  Minnesota Statutes 1996, section 352D.02, 
  9.34  subdivision 1, is amended to read: 
  9.35     Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
  9.36  paragraph (b), if they are in the unclassified service of the 
 10.1   state or metropolitan council and are eligible for coverage 
 10.2   under the general state employees retirement plan under chapter 
 10.3   352, are participants in the unclassified program under this 
 10.4   chapter unless the employee gives notice to the executive 
 10.5   director of the Minnesota state retirement system within one 
 10.6   year following the commencement of employment in the 
 10.7   unclassified service that the employee desires coverage under 
 10.8   the general state employees retirement plan.  For the purposes 
 10.9   of this chapter, an employee who does not file notice with the 
 10.10  executive director is deemed to have exercised the option to 
 10.11  participate in the unclassified plan. 
 10.12     (b) Enumerated employees are: 
 10.13     (1) an employee in the office of the governor, lieutenant 
 10.14  governor, secretary of state, state auditor, state treasurer, 
 10.15  attorney general, or an employee of the state board of 
 10.16  investment; 
 10.17     (2) the head of a department, division, or agency created 
 10.18  by statute in the unclassified service, an acting department 
 10.19  head subsequently appointed to the position, or an employee 
 10.20  enumerated in section 15A.081, subdivision 1 or 15A.083, 
 10.21  subdivision 4; 
 10.22     (3) a permanent, full-time unclassified employee of the 
 10.23  legislature or a commission or agency of the legislature or a 
 10.24  temporary legislative employee having shares in the supplemental 
 10.25  retirement fund as a result of former employment covered by this 
 10.26  chapter, whether or not eligible for coverage under the 
 10.27  Minnesota state retirement system; 
 10.28     (4) a person who is employed in a position established 
 10.29  under section 43A.08, subdivision 1, clause (3), or in a 
 10.30  position authorized under a statute creating or establishing a 
 10.31  department or agency of the state, which is at the deputy or 
 10.32  assistant head of department or agency or director level; 
 10.33     (5) the regional administrator, or executive director of 
 10.34  the metropolitan council, general counsel, division directors, 
 10.35  operations managers, and other positions as designated by the 
 10.36  council, all of which may not exceed 27 positions at the council 
 11.1   and the chair, provided that upon initial designation of all 
 11.2   positions provided for in this clause, no further designations 
 11.3   or redesignations may be made without approval of the board of 
 11.4   directors of the Minnesota state retirement system; 
 11.5      (6) the executive director, associate executive director, 
 11.6   and not to exceed nine positions of the higher education 
 11.7   services office in the unclassified service, as designated by 
 11.8   the higher education services office before January 1, 1992, or 
 11.9   subsequently redesignated with the approval of the board of 
 11.10  directors of the Minnesota state retirement system, unless the 
 11.11  person has elected coverage by the individual retirement account 
 11.12  plan under chapter 354B; 
 11.13     (7) the clerk of the appellate courts appointed under 
 11.14  article VI, section 2, of the Constitution of the state of 
 11.15  Minnesota; 
 11.16     (8) the chief executive officers of correctional facilities 
 11.17  operated by the department of corrections and of hospitals and 
 11.18  nursing homes operated by the department of human services; 
 11.19     (9) an employee whose principal employment is at the state 
 11.20  ceremonial house; 
 11.21     (10) an employee of the Minnesota educational computing 
 11.22  corporation; 
 11.23     (11) an employee of the world trade center board; and 
 11.24     (12) an employee of the state lottery board who is covered 
 11.25  by the managerial plan established under section 43A.18, 
 11.26  subdivision 3; and 
 11.27     (13) a physician employed by the department of human 
 11.28  services. 
 11.29     Sec. 15.  Laws 1993, chapter 301, section 1, subdivision 4, 
 11.30  is amended to read: 
 11.31     Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
 11.32  report required by subdivision 3, each entity head shall submit 
 11.33  the list of recommended waivers to the commissioner of employee 
 11.34  relations.  The commissioner shall then grant the waivers 
 11.35  requested by each entity, effective for the requesting entity, 
 11.36  for a period ending June 30, 1997, subject to the restrictions 
 12.1   in paragraph (b) and to revision in accordance with subdivision 
 12.2   5.  These waivers are effective for the requesting entity, for a 
 12.3   period ending June 30, 1997, except the waivers granted for the 
 12.4   Minnesota housing finance agency shall extend to June 30, 1999.  
 12.5   The commissioner shall waive a rule by granting a variance under 
 12.6   Minnesota Statutes, section 14.05, subdivision 4.  
 12.7      (b) The commissioner may not grant a waiver if it would 
 12.8   result in the layoff of classified employees or unclassified 
 12.9   employees covered by a collective bargaining agreement except as 
 12.10  provided in a plan negotiated under Minnesota Statutes, chapter 
 12.11  179A, that provides options to layoff for employees who would be 
 12.12  affected.  If a proposed waiver would violate the terms of a 
 12.13  collective bargaining agreement reached under Minnesota 
 12.14  Statutes, chapter 179A, the waiver may not be granted without 
 12.15  the consent of the exclusive representative that is a party to 
 12.16  the agreement. 
 12.17     Sec. 16.  Laws 1995, chapter 248, article 12, section 2, is 
 12.18  amended to read: 
 12.19     Sec. 2.  [TERMINATION.] 
 12.20     Section 1 and the civil service pilot project in the 
 12.21  housing finance agency as authorized by Laws 1993, chapter 301, 
 12.22  terminate June 30, 1997 1999, or at any earlier time by a method 
 12.23  agreed upon by the commissioners of employee relations and 
 12.24  housing finance and the affected exclusive bargaining 
 12.25  representative of state employees. 
 12.26     Sec. 17.  Laws 1995, chapter 248, article 13, section 2, 
 12.27  subdivision 2, is amended to read: 
 12.28     Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 12.29  30, 1997 2001, the governor shall designate an executive agency 
 12.30  that will conduct a pilot civil service project.  The pilot 
 12.31  program must adhere to the policies expressed in subdivision 1 
 12.32  and in Minnesota Statutes, section 43A.01.  For the purposes of 
 12.33  conducting the pilot project, the commissioner of the designated 
 12.34  agency is exempt from the provisions that relate to employment 
 12.35  in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 
 12.36  3900, and administrative procedures and policies of the 
 13.1   department of employee relations.  If a proposed exemption from 
 13.2   the provisions that relate to employment in Minnesota Statutes, 
 13.3   chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 13.4   procedures and policies of the department of employee relations 
 13.5   would violate the terms of a collective bargaining agreement 
 13.6   effective under Minnesota Statutes, chapter 179A, the exemption 
 13.7   is not effective without the consent of the exclusive 
 13.8   representative that is a party to the agreement.  Upon request 
 13.9   of the commissioner carrying out the pilot project, the 
 13.10  commissioner of employee relations shall provide technical 
 13.11  assistance in support of the pilot project.  This section does 
 13.12  not exempt an agency from compliance with Minnesota Statutes, 
 13.13  sections 43A.19 and 43A.191, or from rules adopted to implement 
 13.14  those sections. 
 13.15     Sec. 18.  Laws 1995, chapter 248, article 13, section 2, 
 13.16  subdivision 5, is amended to read: 
 13.17     Subd. 5.  [PILOT PROJECT.] During the biennium ending June 
 13.18  30, 1997, the human resources innovation committee established 
 13.19  under Laws 1993, chapter 301, section 1, subdivision 6, 1999, 
 13.20  the department of employee relations in conjunction with union 
 13.21  representatives shall designate state job classifications to be 
 13.22  included in a one or more pilot project projects.  Under this 
 13.23  pilot project:  (1) resumes of applicants for positions to be 
 13.24  filled through a competitive open this process will be evaluated 
 13.25  through an objective computerized system that will identify 
 13.26  which applicants have the required skills; and (2)  information 
 13.27  on applicants determined to have required skills will be 
 13.28  forwarded to the agency seeking to fill a vacancy, without 
 13.29  ranking these applicants, and without a limit on the number of 
 13.30  applicants that may be forwarded to the hiring agency.  Laws or 
 13.31  rules that govern examination, ranking of eligibles, and 
 13.32  certification of eligibles for competitive open positions do not 
 13.33  apply to those job classifications included in the pilot 
 13.34  project.  This process is in lieu of the procedures provided in 
 13.35  Minnesota Statutes, sections 43A.10 to 43A.13, and related rules 
 13.36  and procedures adopted under Minnesota Statutes, section 43A.04, 
 14.1   subdivision 4, except that applicants who are being referred and 
 14.2   who qualify for veterans preference under Minnesota Statutes, 
 14.3   section 43A.11, will be placed ahead of referrals who meet the 
 14.4   required skills of the vacant position and who do not qualify 
 14.5   for veterans preference.  Before designating a job 
 14.6   classification under this subdivision, the committee department 
 14.7   must assure that the hiring process for those job 
 14.8   classifications complies with the policies in subdivision 1.  
 14.9      Sec. 19.  Laws 1995, chapter 248, article 13, section 2, 
 14.10  subdivision 6, is amended to read: 
 14.11     Subd. 6.  [EVALUATION.] The commissioner of employee 
 14.12  relations, in consultation with the human resources innovation 
 14.13  committee union representatives, shall design and implement a 
 14.14  system for evaluating the success of the pilot project in 
 14.15  subdivision 5.  By October 1, 1996 1997, and October 1, 1997 
 14.16  1998, the commissioner must report to the legislature on the 
 14.17  pilot project.  The report must:  
 14.18     (1) list job classifications subject to the each pilot 
 14.19  project, and the number of positions filled under in these job 
 14.20  classes under the pilot; 
 14.21     (2) evaluate the extent to which the project has been 
 14.22  successful in maintaining a merit-based system in the absence of 
 14.23  traditional civil service laws and rules; 
 14.24     (3) quantify time and money saved in the hiring process 
 14.25  under the these pilot project projects, as compared to hiring 
 14.26  under the traditional laws and rules; 
 14.27     (4) document the extent of complaints or problems arising 
 14.28  under the new system; and 
 14.29     (5) recommend any changes in laws or rules needed to make 
 14.30  permanent the successes of the pilot project projects. 
 14.31     Sec. 20.  Laws 1995, chapter 248, article 13, section 3, 
 14.32  subdivision 2, is amended to read: 
 14.33     Subd. 2.  [PILOT PROJECT.] During the biennium ending June 
 14.34  30, 1997, the department of employee relations must implement a 
 14.35  system of incentives including economic incentives for 
 14.36  unrepresented employees for or groups of unrepresented employees 
 15.1   in the department.  The system must be approved by the 
 15.2   commissioner of finance before being implemented.  The system 
 15.3   must have the following characteristics: 
 15.4      (1) it must provide nonmanagerial unrepresented employees 
 15.5   or groups of employees within the agency the possibility of 
 15.6   earning economic rewards by suggesting changes in operation of 
 15.7   the department's programs; 
 15.8      (2) it must provide nonmanagerial represented employees 
 15.9   within the agency the possibility of receiving individual or 
 15.10  group economic rewards, if provided in a collective bargaining 
 15.11  agreement, for suggesting changes in the operation of the 
 15.12  department's programs; 
 15.13     (3) it must provide groups of nonmanagerial represented 
 15.14  employees within the agency the possibility of receiving group 
 15.15  rewards in the form of training opportunities, filling of 
 15.16  unfilled employee complement, or other resources that benefit 
 15.17  overall group performance; 
 15.18     (4) any economic awards must be based on changes in 
 15.19  operations suggested by nonmanagerial employees or groups of 
 15.20  employees that result in objectively measurable cost savings of 
 15.21  at least $25,000 or significant and objectively measurable 
 15.22  efficiencies in services that the agency provides to its 
 15.23  customers or clients, without decreasing the quality of these 
 15.24  services; 
 15.25     (5) awards must be a minimum of $500 up to a maximum of 
 15.26  $2,500 per year to unrepresented nonmanagerial employees or 
 15.27  groups of employees who were instrumental in identifying and or 
 15.28  implementing the efficiency and cost-saving measures; 
 15.29     (6) an "efficiency savings account" must be created within 
 15.30  each fund that is used to provide money for department 
 15.31  services.  Each account consists of money saved directly as a 
 15.32  result of initiatives under this section.  Any awards under this 
 15.33  article must be paid from money in an efficiency savings 
 15.34  account.  One-half of the money in the account may be used for 
 15.35  awards under this section, and the remainder must be returned to 
 15.36  the fund from which the money was appropriated; 
 16.1      (7) no award shall be given except upon approval of a team 
 16.2   comprised of equal numbers of management and nonmanagement 
 16.3   employees selected by the commissioner of employee relations 
 16.4   from state employees outside of the department; and 
 16.5      (8) the economic awards granted to unrepresented employees 
 16.6   must be one-time awards in the form of a lump sum award, and 
 16.7   must not add to the base salary of employees. 
 16.8      Sec. 21.  [AMERICANS WITH DISABILITIES ACT COORDINATOR.] 
 16.9      The commissioner shall designate a state ADA coordinator 
 16.10  who will have primary responsibility for providing training and 
 16.11  technical assistance to agencies on the provisions of titles I 
 16.12  and II of the Americans with Disability Act, Public Law Number 
 16.13  101-336, and Minnesota Statutes, chapter 363.  The ADA 
 16.14  coordinator will establish monitoring procedures and reports of 
 16.15  progress to the governor's office on no less than a biennial 
 16.16  basis. 
 16.17     The ADA coordinator will work with the state director of 
 16.18  diversity and equal opportunity on the establishment of 
 16.19  affirmative action goals for persons with disabilities in 
 16.20  accordance with Minnesota Statutes, section 43A.19, subdivision 
 16.21  1, paragraph (b), and the review and approval of agency 
 16.22  affirmative action plans consistent with Minnesota Statutes, 
 16.23  sections 43A.04, subdivision 3, and 43A.191, subdivision 1. 
 16.24     Sec. 22.  [ELECTION FOR CURRENT EMPLOYEES; HUMAN SERVICES 
 16.25  PHYSICIANS.] 
 16.26     A physician employed by the department of human services 
 16.27  employed on the effective date of this section who was covered 
 16.28  by the general state employees retirement plan under Minnesota 
 16.29  Statutes may elect to switch coverage to the unclassified plan 
 16.30  and may transfer assets as provided in Minnesota Statutes, 
 16.31  section 352D.03. 
 16.32     Sec. 23.  [HUMAN RESOURCES SYSTEM.] 
 16.33     Subdivision 1.  [PILOT PROJECT.] The pilot program 
 16.34  established in the department of human services by Laws 1994, 
 16.35  chapter 453, section 1, is continued and amended as described in 
 16.36  this section.  The pilot program must adhere to the policies 
 17.1   expressed in subdivision 1 and in Minnesota Statutes, section 
 17.2   43A.01.  For the purposes of conducting the expanded pilot 
 17.3   project, the commissioner of human services is exempt from the 
 17.4   provisions that relate to employment in Minnesota Statutes, 
 17.5   chapter 43A, Minnesota Rules, chapter 3900, and administrative 
 17.6   procedures and policies of the department of employee 
 17.7   relations.  If a proposed exemption from the provisions that 
 17.8   relate to employment in Minnesota Statutes, chapter 43A, 
 17.9   Minnesota Rules, chapter 3900, and administrative procedures and 
 17.10  policies of the department of employee relations would violate 
 17.11  the terms of a collective bargaining agreement effective under 
 17.12  Minnesota Statutes, chapter 179A, the exemption is not effective 
 17.13  without the consent of the exclusive representative that is a 
 17.14  party to the agreement.  The labor-management committee 
 17.15  established by Laws 1994, chapter 453, section 1, shall 
 17.16  continue.  The committee membership may be expanded as long as 
 17.17  an equal number of labor and management representatives is 
 17.18  maintained.  A proposed exemption may not be implemented without 
 17.19  the approval of the labor-management committee unless it affects 
 17.20  only managerial or other unrepresented positions.  Upon request 
 17.21  of the commissioner of human services, and subject to the 
 17.22  availability of resources, the commissioner of employee 
 17.23  relations may provide technical assistance in support of the 
 17.24  pilot project and may request reimbursement for the reasonable 
 17.25  cost of any services provided.  This section does not exempt the 
 17.26  department of human services from compliance with Minnesota 
 17.27  Statutes, sections 43A.19 and 43A.191, or from rules adopted to 
 17.28  implement those sections. 
 17.29     Subd. 2.  [EVALUATION.] The department of human services 
 17.30  shall evaluate the pilot program.  The evaluation shall include 
 17.31  at least the following factors:  
 17.32     (1) the extent to which the department of human services 
 17.33  has been successful in maintaining a merit-based human resources 
 17.34  system in the absence of the traditional civil service rules and 
 17.35  procedures; 
 17.36     (2) the extent to which the project's projected outcomes 
 18.1   were achieved; 
 18.2      (3) the satisfaction of managers, supervisors, and 
 18.3   exclusive representatives of employees with the changes; and 
 18.4      (4) the extent of complaints or problems arising under the 
 18.5   new system.  
 18.6      The department of human services must report to the 
 18.7   legislature by January 15, 1999, January 15, 2000, and January 
 18.8   15, 2001, on the progress and results of the project. 
 18.9      Sec. 24.  [STUDY OF STATE HIRING OPTIONS.] 
 18.10     The commissioner of human services shall study and report 
 18.11  to the legislature by January 15, 1998, with recommendations to 
 18.12  expand employment opportunities for public assistance recipients 
 18.13  in state agencies and institutions of higher education.  The 
 18.14  report may include recommendations on: 
 18.15     (1) giving qualified applicants who are recipients of 
 18.16  public assistance preference in hiring; and 
 18.17     (2) other recommendations developed by the commissioner in 
 18.18  consultation with other state agencies and institutions of 
 18.19  higher education. 
 18.20     Sec. 25.  [REPEALER.] 
 18.21     Minnesota Statutes 1996, section 43A.182, and Laws 1995, 
 18.22  chapter 248, article 10, section 12, are repealed. 
 18.23     Sec. 26.  [EFFECTIVE DATE.] 
 18.24     Sections 14 and 22 are effective July 1, 1997.