1.1 	A bill for an act
1.2 	relating to state employees; modifying grievance
1.3 	appeal procedures; eliminating a medical examination
1.4 	requirement; authorizing rulemaking; amending
1.5 	Minnesota Statutes 2004, section 43A.33, subdivision
1.6 	3; repealing Minnesota Statutes 2004, sections 43A.33,
1.7 	subdivision 4; 43A.34, subdivision 3.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 43A.33,
1.10 	subdivision 3, is amended to read:
1.11 		Subd. 3.Procedures.  Procedures for discipline and
1.12 	discharge of employees covered by collective bargaining
1.13 	agreements shall be governed by the agreements.  Procedures for
1.14 	employees not covered by a collective bargaining agreement shall
1.15 	be governed by this subdivision and by the commissioner's and
1.16 	managerial plans.
1.17 	(a) For discharge, suspension without pay or demotion, no
1.18 	later than the effective date of such action, a permanent
1.19 	classified employee not covered by a collective bargaining
1.20 	agreement shall be given written notice by the appointing
1.21 	authority.  The content of that notice as well as the employee's
1.22 	right to reply to the appointing authority shall be as
1.23 	prescribed in the grievance procedure contained in the
1.24 	applicable plan established pursuant to section 43A.18.  The
1.25 	notice shall also include a statement that the employee may
1.26 	elect to appeal the action to the Office of Administrative
2.1 	Hearings Bureau of Mediation Services within 30 calendar days
2.2 	following the effective date of the disciplinary action.  A copy
2.3 	of the notice and the employee's reply, if any, shall be filed
2.4 	by the appointing authority with the commissioner no later than
2.5 	ten calendar days following the effective date of the
2.6 	disciplinary action.  The commissioner shall have final
2.7 	authority to decide whether the appointing authority shall
2.8 	settle the dispute prior to the hearing provided under
2.9 	subdivision 4.
2.10 	(b) For discharge, suspension, or demotion of an employee
2.11 	serving an initial probationary period, and for noncertification
2.12 	in any subsequent probationary period, grievance procedures
2.13 	shall be as provided in the plan established pursuant to section
2.14 	43A.18.
2.15 	(c) Any permanent employee who is covered by a collective
2.16 	bargaining agreement may elect to appeal to the chief
2.17 	administrative law judge within 30 days following the effective
2.18 	date of the discharge, suspension, or demotion if the collective
2.19 	bargaining agreement provides that option.  In no event may an
2.20 	employee use both the procedure under this section and the
2.21 	grievance procedure available pursuant to sections 179A.01 to
2.22 	179A.25.Within ten days of receipt of the employee's written
2.23 	notice of appeal, the commissioner of the Bureau of Mediation
2.24 	Services shall provide both parties with a list of potential
2.25 	arbitrators according to the rules of the Bureau of Mediation
2.26 	Services to hear the appeal.  The process of selecting the
2.27 	arbitrator from the list shall be determined by the plan.
2.28 	The hearing shall be conducted pursuant to the rules of the
2.29 	Bureau of Mediation Services.  If the arbitrator finds, based on
2.30 	the hearing record, that the action appealed was not taken by
2.31 	the appointing authority for just cause, the employee shall be
2.32 	reinstated to the position, or an equal position in another
2.33 	division within the same agency, without loss of pay.  If the
2.34 	arbitrator finds that there exists sufficient grounds for
2.35 	institution of the appointing authority's action but the hearing
2.36 	record establishes extenuating circumstances, the arbitrator may
3.1 	reinstate the employee, with full, partial, or no pay, or may
3.2 	modify the appointing authority's action.  The appointing
3.3 	authority shall bear the costs of the arbitrator for hearings
3.4 	provided for in this section.

3.5 	Sec. 2. REPEALER.
 3.6 	Minnesota Statutes 2004, sections 43A.33, subdivision 4,
3.7 	and 43A.34, subdivision 3, are repealed.