Office of the Revisor of Statutes
SF 3431
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/25/2025 09:49 a.m.
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A bill for an act
relating to state government; reinstating legislative review of compensation plans
and salaries; amending Minnesota Statutes 2024, sections 3.855, subdivisions 2,
3, 6; 43A.05, subdivision 3; 43A.18, subdivisions 2, 3, 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 3.855, subdivision 2, is amended to read:
Subd. 2.
new text begin Unrepresentednew text end state employee compensation.
(a) The commissioner of
management and budget shall submit to the chair of the commission any compensation
plans or salaries prepared under section 43A.18, subdivisions 2, 3, 3b, and 4. The chancellor
of the Minnesota State Colleges and Universities shall submit any compensation plan under
section 43A.18, subdivision 3a.new text begin If the commission disapproves a compensation plan or
salary, the commission must specify in writing to the parties the portions of the compensation
plan or salaries with which the commission disagrees and the commission's reasons for
disapproval. If the commission approves a compensation plan or salary, the commission
must submit the compensation plan or salaries to the legislature to be accepted or rejected
under this section.
new text end
new text begin
(b) When the legislature is not in session, the commission may give interim approval to
a salary or compensation plan. The commission must submit the approved salaries and
compensation plans to the entire legislature for ratification at a special legislative session
called to consider the salary and compensation plans or at the next regular legislative session.
The commission's approval or disapproval is not binding on the legislature.
new text end
deleted text begin (b)deleted text end new text begin (c) When the legislature is not in session, new text end the proposed salary or compensation plan
must be implemented upon deleted text begin its submission todeleted text end new text begin approval bynew text end the commissionnew text begin , and state
employees covered by the proposed plan or salary do not have the right to strike while the
interim approval is in effectnew text end .
Sec. 2.
Minnesota Statutes 2024, section 3.855, subdivision 3, is amended to read:
Subd. 3.
Other deleted text begin salary and compensation plandeleted text end new text begin salaries and compensation plansnew text end .
The
commission shallnew text begin :
new text end
new text begin
(1) review and approve or reject a plan for compensation and the terms and conditions
of employment prepared and submitted by the commissioner of management and budget
under section 43A.18, subdivision 2, covering all state employees who are not represented
by an exclusive bargaining representative and whose compensation is not provided for by
chapter 43A or other law;
new text end
new text begin
(2) review and approve or reject a plan for total compensation and the terms and
conditions of employment for employees in positions identified as managerial under section
43A.18, subdivision 3, whose salaries and benefits are not otherwise provided for in law or
other plans established under chapter 43A;
new text end
new text begin
(3) review and approve or reject recommendations for salary range of officials of higher
education systems under section 15A.081, subdivision 7c;
new text end
new text begin
(4) review and approve or reject plans for compensation, terms, and conditions of
employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
new text end
new text begin (5)new text end review and approve or reject the plan for compensation, terms, and conditions of
employment of classified employees in the office of the legislative auditor under section
3.971, subdivision 2.
Sec. 3.
Minnesota Statutes 2024, section 3.855, subdivision 6, is amended to read:
Subd. 6.
Information required; collective bargaining agreements, memoranda of
understanding, and interest arbitration awards.
Within 14 days after the implementation
of a collective bargaining agreement, memorandum of understanding, deleted text begin compensation plan,deleted text end
or receipt of an interest arbitration award, the commissioner of management and budget
must submit to the Legislative Coordinating Commission the following:
(1) a copy of the collective bargaining agreement deleted text begin or compensation plandeleted text end showing changes
from previous agreements and a copy of the executed agreement;
(2) a copy of any memorandum of understanding that has a fiscal impact or interest
arbitration award;
(3) a comparison of biennial compensation costs under the current agreement deleted text begin or plandeleted text end to
the projected biennial compensation costs under the new agreement, memorandum of
understanding, or interest arbitration award; and
(4) a comparison of biennial compensation costs under the current agreement deleted text begin or plandeleted text end to
the projected biennial compensation costs for the following biennium under the new
agreement, memorandum of understanding, or interest arbitration award.
Sec. 4.
Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:
Subd. 3.
Commissioner's plan.
The commissioner shall periodically develop and
establish pursuant to this chapter a commissioner's plan. The commissioner shall submit
the plannew text begin before the plan becomes effectivenew text end to the Legislative Coordinating Commissionnew text begin for
approvalnew text end .
Sec. 5.
Minnesota Statutes 2024, section 43A.18, subdivision 2, is amended to read:
Subd. 2.
Commissioner's plan.
Except as provided in section 43A.01, the compensation,
terms and conditions of employment for all classified and unclassified employees, except
unclassified employees in the legislative and judicial branches, who are not covered by a
collective bargaining agreement and not otherwise provided for in chapter 43A or other law
are governed solely by a plan developed by the commissioner. The Legislative Coordinating
Commission shall reviewnew text begin and approve, reject, or modifynew text end the plan under section 3.855,
subdivision 2. The plan need not be adopted in accordance with the rulemaking provisions
of chapter 14.
Sec. 6.
Minnesota Statutes 2024, section 43A.18, subdivision 3, is amended to read:
Subd. 3.
Managerial plan.
(a) The commissioner shall identify individual positions or
groups of positions in the classified and unclassified service in the executive branch as being
managerial. The list must not include positions listed in subdivision 4.
(b) The commissioner shall periodically prepare a plan for total compensation and terms
and conditions of employment for employees of those positions identified as being managerial
and whose salaries and benefits are not otherwise provided for in law or other plans
established under this chapter. Before becoming effective those portions of the plan
establishing compensation and terms and conditions of employment must be deleted text begin submitted todeleted text end new text begin
reviewed and approved or modified bynew text end the Legislative Coordinating Commissionnew text begin and the
legislaturenew text end under section 3.855, subdivisions 2 and 3.
(c) Incumbents of managerial positions as identified under this subdivision must be
excluded from any bargaining units under chapter 179A.
(d) The management compensation plan must provide methods and levels of
compensation for managers that will be generally comparable to those applicable to managers
in other public and private employment. The plan must ensure that compensation within
assigned salary ranges is related to level of performance. The plan must also provide a
procedure for establishment of a salary rate for a newly created position and a new appointee
to an existing position and for progression through assigned salary ranges. The employee
benefits established under the provisions of the managerial plan may be extended to agency
heads whose salaries are established in section 15A.0815 and to constitutional officers,
judges of the Workers' Compensation Court of Appeals, and Tax Court judges.
Sec. 7.
Minnesota Statutes 2024, section 43A.18, subdivision 9, is amended to read:
Subd. 9.
Summary information on website.
Before the commissioner submits a
proposed collective bargaining agreement, arbitration award, or compensation plan to the
Legislative Coordinating Commission for review under section 3.855, the commissioner
must post on a state website a summarynew text begin of the proposed agreement, award, or plan. The
summary must include the amount of and nature of proposed changes in employee
compensation, the estimated cost to the state of proposed changes in employee compensation,
and a description of proposed significant changes in policy. After approval of an agreement,
award, or plan by the Legislative Coordinating Commission, the commissioner must provide
a link from the commissioner's summary to the full text of the agreement, award, or plan.
The summary must remain on the website at least until the full legislature has approved the
agreement, award, or plan. This section also applies to agreements, awards, and plansnew text end
covering employees of the Minnesota State Colleges and Universities and to compensation
plans that must be submitted to the Legislative Coordinating Commission by other executive
appointing authorities. The Minnesota State Colleges and Universities and other executive
appointing authorities must submit information to the commissioner, at a time and in a
manner specified by the commissioner, so the commissioner can post information relating
to these appointing authorities on the web as required by this section.
Sec. 8. new text begin REVIVAL AND REENACTMENT.
new text end
new text begin
Minnesota Statutes 2023 Supplement, section 3.855, subdivision 5, is revived and
reenacted effective retroactively from May 24, 2024. Any time frames within or dependent
on the subdivision are based on the original effective date in Laws 2019, First Special
Session chapter 10, article 2, section 1.
new text end