1.1                          A bill for an act 
  1.2             relating to public employees; transferring duties 
  1.3             relating to exceptions to the political subdivision 
  1.4             compensation limit; authorizing the state auditor to 
  1.5             charge a fee; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 15A; repealing Minnesota 
  1.7             Statutes 2002, section 43A.17, subdivision 9. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [15A.23] [POLITICAL SUBDIVISION COMPENSATION 
  1.10  LIMIT.] 
  1.11     (a) The salary and the value of all other forms of 
  1.12  compensation of a person employed by a statutory or home rule 
  1.13  charter city, county, town, metropolitan or regional agency, or 
  1.14  other political subdivision of this state excluding a school 
  1.15  district, or employed under section 422A.03, may not exceed 95 
  1.16  percent of the salary of the governor as set under section 
  1.17  15A.082, except as provided in this section.  
  1.18     (b) Deferred compensation and payroll allocations to 
  1.19  purchase an individual annuity contract for an employee are 
  1.20  included in determining the employee's salary.  Other forms of 
  1.21  compensation which shall be included to determine an employee's 
  1.22  total compensation are all other direct and indirect items of 
  1.23  compensation which are not specifically excluded by this 
  1.24  section.  Other forms of compensation which shall not be 
  1.25  included in a determination of an employee's total compensation 
  1.26  for the purposes of this section are: 
  2.1      (1) employee benefits that are also provided for the 
  2.2   majority of all other full-time employees of the political 
  2.3   subdivision, vacation and sick leave allowances, health and 
  2.4   dental insurance, disability insurance, term life insurance, and 
  2.5   pension benefits or like benefits the cost of which is borne by 
  2.6   the employee or which is not subject to tax as income under the 
  2.7   Internal Revenue Code of 1986; 
  2.8      (2) dues paid to organizations that are of a civic, 
  2.9   professional, educational, or governmental nature; and 
  2.10     (3) reimbursement for actual expenses incurred by the 
  2.11  employee which the governing body determines to be directly 
  2.12  related to the performance of job responsibilities, including 
  2.13  any relocation expenses paid during the initial year of 
  2.14  employment. 
  2.15     The value of other forms of compensation shall be the 
  2.16  annual cost to the political subdivision for the provision of 
  2.17  the compensation.  
  2.18     (c) The salary of a medical doctor or doctor of osteopathy 
  2.19  occupying a position that the governing body of the political 
  2.20  subdivision has determined requires an M.D. or D.O. degree is 
  2.21  excluded from the limitation in this section. 
  2.22     (d) The state auditor may increase the limitation in this 
  2.23  section for a position that the state auditor has determined 
  2.24  requires special expertise necessitating a higher salary to 
  2.25  attract or retain a qualified person.  The state auditor shall 
  2.26  review each proposed increase giving due consideration to salary 
  2.27  rates paid to other persons with similar responsibilities in the 
  2.28  state and nation. 
  2.29     Before granting an increase in the limitation, the state 
  2.30  auditor must submit the proposed increase to the legislative 
  2.31  coordinating commission for its review and recommendation.  The 
  2.32  recommendation is advisory only.  If the commission fails to 
  2.33  make a recommendation with 30 days from its receipt of the 
  2.34  proposal, it is deemed to have made no recommendation.  The 
  2.35  state auditor may charge and collect, pursuant to section 6.56, 
  2.36  a fee from political subdivisions proposing a limitation 
  3.1   increase to cover the cost incurred by the state auditor under 
  3.2   this subdivision.  The amounts collected in fees shall be 
  3.3   deposited in an account in the state special revenue fund and 
  3.4   are appropriated to the state auditor for the costs incurred by 
  3.5   the state auditor under this section.  
  3.6      Sec. 2.  [REPEALER.] 
  3.7      Minnesota Statutes 2002, section 43A.17, subdivision 9, is 
  3.8   repealed.