1.1                          A bill for an act 
  1.2             relating to finance; reducing the number of deputy and 
  1.3             assistant commissioners in state agencies; reducing 
  1.4             the number of unclassified positions in state 
  1.5             agencies; reducing the upper limit of salaries in 
  1.6             state agencies; imposing limitations on state agency 
  1.7             spending; reducing appropriations to state agencies in 
  1.8             the executive branch for fiscal years 2004 and 2005; 
  1.9             amending Minnesota Statutes 2002, sections 15.06, 
  1.10            subdivision 8; 16B.03; 43A.03, subdivision 3; 43A.17, 
  1.11            subdivisions 1, 4; 45.013; 116.03, subdivision 1; 
  1.12            116J.01, subdivision 5; 174.02, subdivision 2; 241.01, 
  1.13            subdivision 2; Minnesota Statutes 2003 Supplement, 
  1.14            sections 15.01; 15.06, subdivision 1; 15A.0815, 
  1.15            subdivision 2; 43A.08, subdivision 1; 84.01, 
  1.16            subdivision 3; repealing Minnesota Statutes 2002, 
  1.17            sections 43A.03, subdivision 4; 43A.08, subdivision 
  1.18            1b; 116J.01, subdivision 4; Minnesota Statutes 2003 
  1.19            Supplement, section 43A.08, subdivision 1a. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.22  15.01, is amended to read: 
  1.23     15.01 [DEPARTMENTS OF THE STATE.] 
  1.24     The following agencies are designated as the departments of 
  1.25  the state government:  the Department of Administration; the 
  1.26  Department of Agriculture; the Department of Commerce; the 
  1.27  Department of Corrections; the Department of Education; the 
  1.28  Department of Economic Security; the Department of Employee 
  1.29  Relations; the Department of Employment and Economic 
  1.30  Development; the Department of Finance; the Department of 
  1.31  Health; the Department of Human Rights; the Department of Human 
  1.32  Services; the Department of Labor and Industry; the Department 
  2.1   of Military Affairs; the Department of Natural Resources; the 
  2.2   Department of Employee Relations; the Department of Public 
  2.3   Safety; the Department of Human Services; the Department of 
  2.4   Revenue; the Department of Transportation; the Department of 
  2.5   Veterans Affairs; and their successor departments. 
  2.6      Sec. 2.  Minnesota Statutes 2003 Supplement, section 15.06, 
  2.7   subdivision 1, is amended to read: 
  2.8      Subdivision 1.  [APPLICABILITY.] This section applies to 
  2.9   the following departments or agencies:  the Departments of 
  2.10  Administration, Agriculture, Commerce, Corrections, Economic 
  2.11  Security, Education, Employee Relations, Employment and Economic 
  2.12  Development, Finance, Health, Human Rights, Human Services, 
  2.13  Labor and Industry, Natural Resources, Public Safety, Human 
  2.14  Services, Revenue, Transportation, and Veterans Affairs; the 
  2.15  Housing Finance and Pollution Control Agencies; the Office of 
  2.16  Commissioner of Iron Range Resources and Rehabilitation; the 
  2.17  Bureau of Mediation Services; and their successor departments 
  2.18  and agencies.  The heads of the foregoing departments or 
  2.19  agencies are "commissioners." 
  2.20     Sec. 3.  Minnesota Statutes 2002, section 15.06, 
  2.21  subdivision 8, is amended to read: 
  2.22     Subd. 8.  [NUMBER OF DEPUTY COMMISSIONERS.] Unless 
  2.23  specifically authorized by statute, other than section 43A.08, 
  2.24  subdivision 2, No department or agency specified in subdivision 
  2.25  1 shall have more than one deputy commissioner.  
  2.26     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  2.27  15A.0815, subdivision 2, is amended to read: 
  2.28     Subd. 2.  [GROUP I SALARY LIMITS.] The salaries for 
  2.29  positions in this subdivision may not exceed 95 percent of the 
  2.30  salary of the governor:  
  2.31     Commissioner of administration; 
  2.32     Commissioner of agriculture; 
  2.33     Commissioner of education; 
  2.34     Commissioner of commerce; 
  2.35     Commissioner of corrections; 
  2.36     Commissioner of economic security; 
  3.1      Commissioner of education; 
  3.2      Commissioner of employee relations; 
  3.3      Commissioner of employment and economic development; 
  3.4      Commissioner of finance; 
  3.5      Commissioner of health; 
  3.6      Executive director, Higher Education Services Office; 
  3.7      Commissioner, Housing Finance Agency; 
  3.8      Commissioner of human rights; 
  3.9      Commissioner of human services; 
  3.10     Executive director, State Board of Investment; 
  3.11     Commissioner of labor and industry; 
  3.12     Commissioner of natural resources; 
  3.13     Director of Office of Strategic and Long-Range Planning; 
  3.14     Commissioner, Pollution Control Agency; 
  3.15     Commissioner of public safety; 
  3.16     Commissioner of revenue; 
  3.17     Commissioner of employment and economic development; 
  3.18     Commissioner of transportation; and 
  3.19     Commissioner of veterans affairs. 
  3.20     Sec. 5.  Minnesota Statutes 2002, section 16B.03, is 
  3.21  amended to read: 
  3.22     16B.03 [APPOINTMENTS.] 
  3.23     The commissioner is authorized to appoint staff, including 
  3.24  two one deputy commissioners commissioner, in accordance with 
  3.25  chapter 43A.  
  3.26     Sec. 6.  Minnesota Statutes 2002, section 43A.03, 
  3.27  subdivision 3, is amended to read: 
  3.28     Subd. 3.  [ORGANIZATION.] The commissioner may appoint a 
  3.29  deputy commissioner in the unclassified service.  The department 
  3.30  shall be organized into two bureaus which shall be designated 
  3.31  the Personnel Bureau and the Labor Relations Bureau.  Each 
  3.32  bureau shall be responsible for administering the duties and 
  3.33  functions assigned to it by law.  When the duties of the bureaus 
  3.34  are not mandated by law, the commissioner may establish and 
  3.35  revise the assignments of either bureau.  Each bureau shall be 
  3.36  under the direction of a deputy commissioner.  
  4.1      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  4.2   43A.08, subdivision 1, is amended to read: 
  4.3      Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
  4.4   positions are held by employees who are: 
  4.5      (1) chosen by election or appointed to fill an elective 
  4.6   office; 
  4.7      (2) heads of agencies required by law to be appointed by 
  4.8   the governor or other elective officers, and the executive or 
  4.9   administrative heads of departments, bureaus, divisions, and 
  4.10  institutions specifically established by law in the unclassified 
  4.11  service; 
  4.12     (3) deputy and assistant agency heads and one confidential 
  4.13  secretary in the agencies listed in subdivision 1a and in the 
  4.14  Office of Strategic and Long-Range Planning section 15.06, 
  4.15  subdivision 1; 
  4.16     (4) the confidential secretary to each of the elective 
  4.17  officers of this state and, for the secretary of state and state 
  4.18  auditor, an additional deputy, clerk, or employee; 
  4.19     (5) intermittent help employed by the commissioner of 
  4.20  public safety to assist in the issuance of vehicle licenses; 
  4.21     (6) employees in the offices of the governor and of the 
  4.22  lieutenant governor and one confidential employee for the 
  4.23  governor in the Office of the Adjutant General; 
  4.24     (7) employees of the Washington, D.C., office of the state 
  4.25  of Minnesota; 
  4.26     (8) employees of the legislature and of legislative 
  4.27  committees or commissions; provided that employees of the 
  4.28  Legislative Audit Commission, except for the legislative 
  4.29  auditor, the deputy legislative auditors, and their confidential 
  4.30  secretaries, shall be employees in the classified service; 
  4.31     (9) presidents, vice-presidents, deans, other managers and 
  4.32  professionals in academic and academic support programs, 
  4.33  administrative or service faculty, teachers, research 
  4.34  assistants, and student employees eligible under terms of the 
  4.35  federal Economic Opportunity Act work study program in the 
  4.36  Perpich Center for Arts Education and the Minnesota State 
  5.1   Colleges and Universities, but not the custodial, clerical, or 
  5.2   maintenance employees, or any professional or managerial 
  5.3   employee performing duties in connection with the business 
  5.4   administration of these institutions; 
  5.5      (10) officers and enlisted persons in the National Guard; 
  5.6      (11) attorneys, legal assistants, and three confidential 
  5.7   employees appointed by the attorney general or employed with the 
  5.8   attorney general's authorization; 
  5.9      (12) judges and all employees of the judicial branch, 
  5.10  referees, receivers, jurors, and notaries public, except 
  5.11  referees and adjusters employed by the Department of Labor and 
  5.12  Industry; 
  5.13     (13) members of the State Patrol; provided that selection 
  5.14  and appointment of State Patrol troopers must be made in 
  5.15  accordance with applicable laws governing the classified 
  5.16  service; 
  5.17     (14) chaplains employed by the state; 
  5.18     (15) examination monitors and intermittent training 
  5.19  instructors employed by the Departments of Employee Relations 
  5.20  and Commerce and by professional examining boards and 
  5.21  intermittent staff employed by the technical colleges for the 
  5.22  administration of practical skills tests and for the staging of 
  5.23  instructional demonstrations; 
  5.24     (16) student workers; 
  5.25     (17) executive directors or executive secretaries appointed 
  5.26  by and reporting to any policy-making board or commission 
  5.27  established by statute; 
  5.28     (18) employees unclassified pursuant to other statutory 
  5.29  authority; 
  5.30     (19) intermittent help employed by the commissioner of 
  5.31  agriculture to perform duties relating to pesticides, 
  5.32  fertilizer, and seed regulation; 
  5.33     (20) the administrators and the deputy administrators at 
  5.34  the state academies for the deaf and the blind; and 
  5.35     (21) chief executive officers in the Department of Human 
  5.36  Services. 
  6.1      Sec. 8.  Minnesota Statutes 2002, section 43A.17, 
  6.2   subdivision 1, is amended to read: 
  6.3      Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
  6.4   to 9, "salary" means hourly, monthly, or annual rate of pay 
  6.5   including any lump-sum payments and cost-of-living adjustment 
  6.6   increases but excluding payments due to overtime worked, shift 
  6.7   or equipment differentials, work out of class as required by 
  6.8   collective bargaining agreements or plans established under 
  6.9   section 43A.18, and back pay on reallocation or other payments 
  6.10  related to the hours or conditions under which work is performed 
  6.11  rather than to the salary range or rate to which a class is 
  6.12  assigned.  For presidents of state universities, "salary" does 
  6.13  not include a housing allowance provided through a compensation 
  6.14  plan approved under section 43A.18, subdivision 3a. 
  6.15     The salary, as established in section 15A.0815, of the head 
  6.16  of a state agency in the executive branch is The upper limit on 
  6.17  the salaries of individual employees in the an agency listed in 
  6.18  section 15A.0815 is 88 percent of the salary of the agency head. 
  6.19  However, if an agency head is assigned a salary that is would 
  6.20  make the salary limit lower than the current salary of another 
  6.21  agency employee, the employee retains the salary, but may not 
  6.22  receive an increase in salary as long as the salary is 
  6.23  above that of the agency head the salary limit.  The 
  6.24  commissioner may grant exemptions from these upper limits as 
  6.25  provided in subdivisions 3 and 4. 
  6.26     Sec. 9.  Minnesota Statutes 2002, section 43A.17, 
  6.27  subdivision 4, is amended to read: 
  6.28     Subd. 4.  [EXCEPTIONS.] (a) The commissioner may without 
  6.29  regard to subdivision 1 establish special salary rates and plans 
  6.30  of compensation designed to attract and retain exceptionally 
  6.31  qualified doctors of medicine.  These rates and plans shall be 
  6.32  included in the commissioner's plan.  In establishing salary 
  6.33  rates and eligibility for nomination for payment at special 
  6.34  rates, the commissioner shall consider the standards of 
  6.35  eligibility established by national medical specialty boards 
  6.36  where appropriate.  The incumbents assigned to these special 
  7.1   ranges shall be excluded from the collective bargaining process. 
  7.2      (b) The commissioner may without regard to subdivision 1, 
  7.3   but subject to collective bargaining agreements or compensation 
  7.4   plans, establish special salary rates designed to attract and 
  7.5   retain exceptionally qualified employees in the following 
  7.6   positions: 
  7.7      (1) information systems staff; 
  7.8      (2) actuaries in the Departments of Health, Human Services, 
  7.9   and Commerce; and 
  7.10     (3) (2) epidemiologists in the Department of Health. 
  7.11     Sec. 10.  Minnesota Statutes 2002, section 45.013, is 
  7.12  amended to read: 
  7.13     45.013 [POWER TO APPOINT STAFF.] 
  7.14     The commissioner of commerce may appoint four one deputy 
  7.15  commissioners, four assistant commissioners, and an assistant to 
  7.16  the commissioner.  Those positions, as well as that of and a 
  7.17  confidential secretary, are in the unclassified service.  The 
  7.18  commissioner may appoint other employees necessary to carry out 
  7.19  the duties and responsibilities entrusted to the commissioner.  
  7.20     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
  7.21  84.01, subdivision 3, is amended to read: 
  7.22     Subd. 3.  [EMPLOYEES; DELEGATION.] Subject to the 
  7.23  provisions of Laws 1969, chapter 1129, and to other applicable 
  7.24  laws The commissioner shall organize the department and employ 
  7.25  up to three assistant commissioners, each of whom shall serve at 
  7.26  the pleasure of the commissioner in the unclassified service, 
  7.27  one of whom shall have responsibility for coordinating and 
  7.28  directing the planning of every division within the agency, and 
  7.29  such other officers, employees, and agents as the commissioner 
  7.30  may deem necessary to discharge the functions of the department, 
  7.31  define the duties of such officers, employees, and agents and to 
  7.32  delegate to them any of the commissioner's powers, duties, and 
  7.33  responsibilities subject to the control of, and under the 
  7.34  conditions prescribed by, the commissioner.  Appointments to 
  7.35  exercise delegated power shall be by written order filed with 
  7.36  the secretary of state. 
  8.1      Sec. 12.  Minnesota Statutes 2002, section 116.03, 
  8.2   subdivision 1, is amended to read: 
  8.3      Subdivision 1.  [OFFICE.] (a) The office of commissioner of 
  8.4   the Pollution Control Agency is created and is under the 
  8.5   supervision and control of the commissioner, who is appointed by 
  8.6   the governor under the provisions of section 15.06. 
  8.7      (b) The commissioner may appoint a deputy commissioner and 
  8.8   assistant commissioners who shall be in the unclassified service.
  8.9      (c) The commissioner shall make all decisions on behalf of 
  8.10  the agency that are not required to be made by the agency under 
  8.11  section 116.02. 
  8.12     Sec. 13.  Minnesota Statutes 2002, section 116J.01, 
  8.13  subdivision 5, is amended to read: 
  8.14     Subd. 5.  [DEPARTMENTAL ORGANIZATION.] (a) The commissioner 
  8.15  shall organize the department as provided in section 15.06.  
  8.16     (b) The commissioner may establish divisions and offices 
  8.17  within the department.  The commissioner may employ four deputy 
  8.18  commissioners in the unclassified service.  One deputy must 
  8.19  direct the Minnesota Trade Office and must be experienced and 
  8.20  knowledgeable in matters of international trade.  One must 
  8.21  direct the Office of Tourism and be knowledgeable in matters of 
  8.22  tourism.  
  8.23     (c) The commissioner shall: 
  8.24     (1) employ assistants and other officers, employees, and 
  8.25  agents that the commissioner considers necessary to discharge 
  8.26  the functions of the commissioner's office; 
  8.27     (2) define the duties of the officers, employees, and 
  8.28  agents, and delegate to them any of the commissioner's powers, 
  8.29  duties, and responsibilities, subject to the commissioner's 
  8.30  control and under conditions prescribed by the commissioner.  
  8.31     (d) The commissioner shall ensure that there are at least 
  8.32  three trade and economic development officers in state offices 
  8.33  in nonmetropolitan areas of the state who will work with local 
  8.34  units of government on developing local trade and economic 
  8.35  development. 
  8.36     Sec. 14.  Minnesota Statutes 2002, section 174.02, 
  9.1   subdivision 2, is amended to read: 
  9.2      Subd. 2.  [UNCLASSIFIED POSITIONS.] The commissioner 
  9.3   may establish four positions in the unclassified service at 
  9.4   the appoint a deputy and assistant commissioner, assistant to 
  9.5   commissioner or and a personal secretary levels.  No more than 
  9.6   two of these positions shall be at the deputy commissioner level 
  9.7   in the unclassified service. 
  9.8      Sec. 15.  Minnesota Statutes 2002, section 241.01, 
  9.9   subdivision 2, is amended to read: 
  9.10     Subd. 2.  [DIVISIONS; DEPUTIES DEPUTY.] The commissioner of 
  9.11  corrections may appoint and employ no more than two a deputy 
  9.12  commissioners commissioner.  The commissioner may also appoint a 
  9.13  personal secretary, who shall serve at the commissioner's 
  9.14  pleasure in the unclassified civil service. 
  9.15     Sec. 16.  [SALARY ADJUSTMENTS.] 
  9.16     The salary limitations in section 8 are effective July 1, 
  9.17  2004, and each salary that exceeds the limitations in section 8 
  9.18  must be reduced on that date to comply with the limit, except 
  9.19  that a salary set under a collective bargaining agreement need 
  9.20  not be reduced on July 1, 2004, but must not be increased 
  9.21  thereafter above the salary limit. 
  9.22     The salary of the director of the Higher Education Services 
  9.23  Office must be reduced effective July 1, 2004, to the level it 
  9.24  was at on July 1, 2003. 
  9.25     Sec. 17.  [SPENDING LIMITATIONS.] 
  9.26     An agency in the executive branch may not spend any money 
  9.27  for travel outside of the state during the fiscal year ending 
  9.28  June 30, 2005. 
  9.29     An agency in the executive branch may not contract or pay 
  9.30  for meeting space outside state facilities, for food, or for 
  9.31  meeting facilitators or note-takers who are not state employees. 
  9.32     Sec. 18.  [APPROPRIATION REDUCTIONS:  FISCAL YEAR 2004.] 
  9.33     The commissioner of finance shall reduce general fund 
  9.34  appropriations to executive branch agencies and constitutional 
  9.35  officers for state agency operations in the fiscal year ending 
  9.36  June 30, 2004, by $10,000,000.  This reduction does not apply to 
 10.1   the judicial branch or to the Minnesota State Colleges and 
 10.2   Universities.  The reduction to constitutional officers must be 
 10.3   the same percentage of each officer's general fund 
 10.4   appropriation.  The commissioner shall base the reduction in 
 10.5   part on the amount carried forward from fiscal year 2003 to 
 10.6   fiscal year 2004 under Laws 2003, First Special Session chapter 
 10.7   1, article 2, section 127.  No positions in the classified 
 10.8   service may be eliminated.  
 10.9      Sec. 19.  [APPROPRIATION REDUCTIONS:  FISCAL YEAR 2005.] 
 10.10     The commissioner of finance shall reduce general fund 
 10.11  appropriations to executive branch agencies and constitutional 
 10.12  officers for state agency operations in the fiscal year ending 
 10.13  June 30, 2005, by $10,000,000.  This reduction does not apply to 
 10.14  the judicial branch or to the Minnesota State Colleges and 
 10.15  Universities.  The reduction to constitutional officers must be 
 10.16  the same percentage of each officer's general fund 
 10.17  appropriation.  No positions in the classified service may be 
 10.18  eliminated.  
 10.19     Sec. 20.  [REPEALER.] 
 10.20     (a) Minnesota Statutes 2002, sections 43A.03, subdivision 
 10.21  4; 43A.08, subdivision 1b; and 116J.01, subdivision 4, are 
 10.22  repealed. 
 10.23     (b) Minnesota Statutes 2003 Supplement, section 43A.08, 
 10.24  subdivision 1a, is repealed. 
 10.25     Sec. 21.  [EFFECTIVE DATE.] 
 10.26     Section 18 is effective the day following final enactment.