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HF 994

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/14/2005

Current Version - as introduced

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A bill for an act
relating to local government; modifying the
compensation limit for political subdivision
employees; amending Minnesota Statutes 2004, sections
43A.17, subdivision 9; 356.611, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 43A.17,
subdivision 9, is amended to read:


Subd. 9.

Political subdivision compensation limit.

(a)
The salary and the value of all other forms of compensation of a
person employed by a political subdivision of this state,
excluding a school district, or employed under section 422A.03
may not exceed deleted text begin 95 deleted text end new text begin 125 new text end percent of the salary of the governor as
set under section 15A.082, except as provided in this
subdivision. For purposes of this subdivision, "political
subdivision of this state" includes a statutory or home rule
charter city, county, town, metropolitan or regional agency, or
other political subdivision, but does not include a hospital,
clinic, or health maintenance organization owned by such a
governmental unit.

(b) Deferred compensation and payroll allocations to
purchase an individual annuity contract for an employee are
included in determining the employee's salary. Other forms of
compensation which shall be included to determine an employee's
total compensation are all other direct and indirect items of
compensation which are not specifically excluded by this
subdivision. Other forms of compensation which shall not be
included in a determination of an employee's total compensation
for the purposes of this subdivision are:

(1) employee benefits that are also provided for the
majority of all other full-time employees of the political
subdivision, vacation and sick leave allowances, health and
dental insurance, disability insurance, term life insurance, and
pension benefits or like benefits the cost of which is borne by
the employee or which is not subject to tax as income under the
Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic,
professional, educational, or governmental nature; and

(3) reimbursement for actual expenses incurred by the
employee which the governing body determines to be directly
related to the performance of job responsibilities, including
any relocation expenses paid during the initial year of
employment.

The value of other forms of compensation shall be the
annual cost to the political subdivision for the provision of
the compensation.

(c) The salary of a medical doctor or doctor of osteopathy
occupying a position that the governing body of the political
subdivision has determined requires an M.D. or D.O. degree is
excluded from the limitation in this subdivision.

(d) The commissioner may increase the limitation in this
subdivision for a position that the commissioner has determined
requires special expertise necessitating a higher salary to
attract or retain a qualified person. The commissioner shall
review each proposed increase giving due consideration to salary
rates paid to other persons with similar responsibilities in the
state and nation. deleted text begin The commissioner may not increase the
limitation until the commissioner has presented the proposed
increase to the Legislative Coordinating Commission and received
the commission's recommendation on it. The recommendation is
advisory only. If the commission does not give its
recommendation on a proposed increase within 30 days from its
receipt of the proposal, the commission is deemed to have made
no recommendation.
deleted text end new text begin A political subdivision requesting an
increase in the limitation must submit the request
simultaneously to the commissioner and the Legislative
Coordinating Commission. The commissioner may not act on the
increase before receiving the recommendation of the Legislative
Coordinating Commission, unless the commission does not make a
recommendation within 30 days of receiving the request. The
commissioner must act on the increase within 15 days after
receiving a recommendation from the commission or 45 days after
receiving the request from the political subdivision, whichever
comes first. If the commissioner does not act by the applicable
deadline, the waiver is granted.
new text end

Sec. 2.

Minnesota Statutes 2004, section 356.611,
subdivision 1, is amended to read:


Subdivision 1.

State salary limitations.

(a)
Notwithstanding any provision of law, bylaws, articles of
incorporation, retirement and disability allowance plan
agreements, or retirement plan contracts to the contrary, the
covered salary for pension purposes for a plan participant of a
covered retirement fund enumerated in section 356.30,
subdivision 3, may not exceed deleted text begin 95 deleted text end new text begin 125 new text end percent of the salary
established for the governor under section 15A.082 at the time
the person received the salary.

(b) This section does not apply to a salary paid:

(1) to the governor or to a judge;

(2) to an employee of a political subdivision in a position
that is excluded from the limit as specified under section
43A.17, subdivision 9;

(3) to a state employee as defined under section 43A.02,
subdivision 21;

(4) to an employee of Gillette Hospital who is covered by
the general state employees retirement plan of the Minnesota
State Retirement System;

(5) to an employee of the Minnesota Crop Improvement
Council; or

(6) to an employee of the Minnesota Historical Society.

(c) The limited covered salary determined under this
section must be used in determining employee and employer
contributions and in determining retirement annuities and other
benefits under the respective covered retirement fund and under
this chapter.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final
enactment. The provisions of section 1 establishing a revised
process for considering increases to the compensation limit
apply to proposals for increases submitted after the effective
date of section 1.
new text end