HF 1221

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to labor; modifying provisions relating to 
  1.3             public employment labor relations; amending Minnesota 
  1.4             Statutes 1994, sections 124A.22, subdivision 2a; 
  1.5             179A.03, subdivisions 7, 17, and by adding a 
  1.6             subdivision; 179A.04, subdivision 3; 179A.051; 
  1.7             179A.06, subdivision 2; 179A.09; 179A.16; 179A.18, 
  1.8             subdivision 1; 353C.02; 549.09, subdivision 1; and 
  1.9             572.15. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1994, section 124A.22, 
  1.12  subdivision 2a, is amended to read: 
  1.13     Subd. 2a.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
  1.14  following definitions apply to this subdivision:  
  1.15     (1) "Public employer" means:  
  1.16     (i) a school district; and 
  1.17     (ii) a public employer, as defined by section 179A.03, 
  1.18  subdivision 15, other than a school district that (i) (a) 
  1.19  negotiates a contract under chapter 179A with teachers, 
  1.20  and (ii) (b) is established by, receives state money, or levies 
  1.21  under chapters 120 to 129, or 136D, or 268A, or section 136C.411.
  1.22     (2) "Teacher" means a person, other than a superintendent 
  1.23  or assistant superintendent, principal, assistant principal, or 
  1.24  a supervisor or confidential employee who occupies a position 
  1.25  for which the person must be licensed by the board of teaching, 
  1.26  state board of education, or state board of technical colleges. 
  1.27     (b) Notwithstanding any law to the contrary, a public 
  2.1   employer and the exclusive representative of the teachers shall 
  2.2   both sign a collective bargaining agreement on or before January 
  2.3   15 of an even-numbered calendar year.  If a collective 
  2.4   bargaining agreement is not signed by that date, state aid paid 
  2.5   to the public employer for that fiscal year shall must be 
  2.6   reduced.  However, state aid shall may not be reduced if: 
  2.7      (1) a public employer and the exclusive representative of 
  2.8   the teachers have submitted all unresolved contract items to 
  2.9   interest arbitration according to section 179A.16 before 
  2.10  December 31 of an odd-numbered year and filed required final 
  2.11  positions on all unresolved items with the commissioner of 
  2.12  mediation services before January 15 of an even-numbered year; 
  2.13  and 
  2.14     (2) the arbitration panel has issued its decision within 60 
  2.15  days after the date the final positions were filed. 
  2.16     (c)(1) For a district that reorganizes according to section 
  2.17  122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 
  2.18  odd-numbered year, state aid shall may not be reduced according 
  2.19  to this subdivision if the school board and the exclusive 
  2.20  representative of the teachers both sign a collective bargaining 
  2.21  agreement on or before the March 15 following the effective date 
  2.22  of reorganization.  
  2.23     (2) For a district that jointly negotiates a contract prior 
  2.24  to the effective date of reorganization under section 122.22, 
  2.25  122.23, or 122.241 to 122.248 that, for the first time, includes 
  2.26  teachers in all districts to be reorganized, state aid shall may 
  2.27  not be reduced according to this subdivision if the school board 
  2.28  and the exclusive representative of the teachers sign a 
  2.29  collective bargaining agreement on or before the March 15 
  2.30  following the expiration of the teacher contracts in each 
  2.31  district involved in the joint negotiation. 
  2.32     (3) Only one extension of the contract deadline is 
  2.33  available to a district under this paragraph. 
  2.34     (d) The reduction shall must equal $25 times the number of 
  2.35  actual pupil units:  
  2.36     (1) for a school district, that are in the district during 
  3.1   that fiscal year; or 
  3.2      (2) for a public employer other than a school district, 
  3.3   that are in programs provided by the employer during the 
  3.4   preceding fiscal year. 
  3.5      The department of education shall determine the number of 
  3.6   full-time equivalent actual pupil units in the programs.  The 
  3.7   department of education shall reduce general education aid; if 
  3.8   general education aid is insufficient or not paid, the 
  3.9   department shall reduce other state aids. 
  3.10     (e) Reductions from aid to school districts and public 
  3.11  employers other than school districts shall must be returned to 
  3.12  the general fund redistributed to districts that sign collective 
  3.13  bargaining agreements with their teachers by September 1 of the 
  3.14  previous odd-numbered year.  The funds must be allocated on a 
  3.15  per-pupil basis. 
  3.16     Sec. 2.  Minnesota Statutes 1994, section 179A.03, 
  3.17  subdivision 7, is amended to read: 
  3.18     Subd. 7.  [ESSENTIAL TYPE I EMPLOYEE.] "Essential Type I 
  3.19  employee" means firefighters, peace officers subject to 
  3.20  licensure under sections 626.84 to 626.855, guards at 
  3.21  correctional facilities, confidential employees, supervisory 
  3.22  employees, principals, and assistant principals.  However, for 
  3.23  state employees, "essential type I employee" means all employees 
  3.24  in the law enforcement, and health care professionals, 
  3.25  correctional guards, professional engineering, and supervisory 
  3.26  collective bargaining units, irrespective of severance, and no 
  3.27  other employees.  For University of Minnesota employees, 
  3.28  "essential type I employee" means all employees in law 
  3.29  enforcement, nursing professional and supervisory units, 
  3.30  irrespective of severance, and no other employees.  
  3.31  "Firefighters" means salaried employees of a fire department 
  3.32  whose duties include, directly or indirectly, controlling, 
  3.33  extinguishing, preventing, detecting, or investigating fires.  
  3.34     Sec. 3.  Minnesota Statutes 1994, section 179A.03, 
  3.35  subdivision 17, is amended to read: 
  3.36     Subd. 17.  [SUPERVISORY EMPLOYEE.] "Supervisory employee" 
  4.1   means a person who has the authority to undertake a majority of 
  4.2   the following supervisory functions in the interests of the 
  4.3   employer:  hiring, transfer, suspension, promotion, discharge, 
  4.4   assignment, reward, or discipline of other employees, direction 
  4.5   of the work of other employees, or adjustment of other 
  4.6   employees' grievances on behalf of the employer.  To be included 
  4.7   as a supervisory function which that the person has authority to 
  4.8   undertake, the exercise of the authority by the person may not 
  4.9   be merely routine or clerical in nature but must require the use 
  4.10  of independent judgment.  An employee, other than an essential a 
  4.11  type I employee, who has authority to effectively recommend a 
  4.12  supervisory function, is deemed to have authority to undertake 
  4.13  that supervisory function for the purposes of this subdivision. 
  4.14  The administrative head of a municipality, municipal utility, or 
  4.15  police or fire department, and the administrative head's 
  4.16  assistant, are always considered supervisory employees.  
  4.17     The removal of employees by the employer from a 
  4.18  nonsupervisory appropriate unit for the purpose of designating 
  4.19  the employees as "supervisory employees" shall require requires 
  4.20  either the prior written agreement of the exclusive 
  4.21  representative and the written approval of the commissioner or a 
  4.22  separate determination by the commissioner before the 
  4.23  redesignation is effective.  
  4.24     Sec. 4.  Minnesota Statutes 1994, section 179A.03, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 20.  [TYPE II EMPLOYEE.] "Type II employee" means a 
  4.27  public employee who is not a type I employee. 
  4.28     Sec. 5.  Minnesota Statutes 1994, section 179A.04, 
  4.29  subdivision 3, is amended to read: 
  4.30     Subd. 3.  [OTHER DUTIES.] (a) The commissioner shall:  
  4.31     (a) (1) provide mediation services as requested by the 
  4.32  parties until the parties reach agreement.  The commissioner, 
  4.33  and may continue to assist parties after they have submitted 
  4.34  their final positions for interest arbitration; 
  4.35     (b) (2) issue notices, subpoenas, and orders required by 
  4.36  law to carry out duties under sections 179A.01 to 179A.25; 
  5.1      (c) maintain a list of arbitrators for referral to 
  5.2   employers and exclusive representatives for the resolution of 
  5.3   grievance or interest disputes; 
  5.4      (d) (3) assist the parties in formulating petitions, 
  5.5   notices, and other papers required to be filed with the 
  5.6   commissioner; 
  5.7      (4) conduct elections; 
  5.8      (e) (5) certify the final results of any election or other 
  5.9   voting procedure conducted under sections 179A.01 to 179A.25; 
  5.10     (f) (6) adopt rules relating to the administration of this 
  5.11  chapter; and the conduct of hearings and elections; 
  5.12     (g) (7) receive, catalogue, and file, and make available to 
  5.13  the public all decisions of arbitrators and panels authorized by 
  5.14  sections 179A.01 to 179A.25, all grievance arbitration 
  5.15  decisions, and the commissioner's orders and decisions.  All 
  5.16  decisions catalogued and filed shall be readily available to the 
  5.17  public; 
  5.18     (h) (8) adopt, subject to chapter 14, a grievance procedure 
  5.19  to fulfill that fulfills the purposes of section 179A.20, 
  5.20  subdivision 4.  The grievance procedure shall, does not provide 
  5.21  for the services of the bureau of mediation services.  The 
  5.22  grievance procedure shall be and is available to any employee in 
  5.23  a unit not covered by a contractual grievance procedure; 
  5.24     (i) conduct elections; 
  5.25     (j) (9) maintain a schedule of state employee 
  5.26  classifications or positions assigned to each unit established 
  5.27  in section 179A.10, subdivision 2; 
  5.28     (k) (10) collect such fees as are established by rule for 
  5.29  empanelment of persons on the labor arbitrator roster maintained 
  5.30  by the commissioner or in conjunction with fair share fee 
  5.31  challenges; 
  5.32     (l) (11) provide technical support and assistance to 
  5.33  voluntary joint labor-management committees established for the 
  5.34  purpose of improving relationships between exclusive 
  5.35  representatives and employers, at the discretion of the 
  5.36  commissioner; 
  6.1      (m) (12) provide to the parties a list of arbitrators as 
  6.2   required by section 179A.16, subdivision 4; and 
  6.3      (13) maintain a list of up to 60 arbitrators for referral 
  6.4   to employers and exclusive representatives for the resolution of 
  6.5   grievance or interest disputes.  Each person on the list must be 
  6.6   knowledgeable about collective bargaining and labor relations in 
  6.7   the public sector, well versed in state and federal labor law, 
  6.8   and experienced in and knowledgeable about labor arbitration.  
  6.9   To the extent practicable, the commissioner shall appoint 
  6.10  members to the list so that the list is gender and racially 
  6.11  diverse. 
  6.12     (n) adopt, subject to chapter 14, (b) The commissioner 
  6.13  shall make available uniform baseline determination documents 
  6.14  and uniform collective bargaining agreement settlement documents 
  6.15  applicable to all negotiations between exclusive representatives 
  6.16  of appropriate units of public employees and public employers 
  6.17  other than townships and prescribe procedures and instructions 
  6.18  for completion of the documents.  The commissioner must shall, 
  6.19  at a minimum, include these individual elements in the uniform 
  6.20  baseline determination document:  the costs of any increases to 
  6.21  the wage schedule; the costs of employees moving through the 
  6.22  wage schedule; costs of medical insurance; costs of dental 
  6.23  insurance; costs of life insurance; lump sum payments; shift 
  6.24  differentials; extracurricular activities; longevity; employer 
  6.25  contributions to social security; employer contributions to 
  6.26  state or local retirement plans; and contributions to a deferred 
  6.27  compensation account.  The calculation of the base year must be 
  6.28  based on an annualization of the costs provided in the base year 
  6.29  contract.  The documents must be in the same form as presented 
  6.30  by the commissioner to the legislative commission on employee 
  6.31  relations on February 17, 1994.  A completed uniform collective 
  6.32  bargaining agreement settlement document must be presented to 
  6.33  the public employer at the time it ratifies a collective 
  6.34  bargaining agreement and must be available afterward for 
  6.35  inspection during normal business hours at the principal 
  6.36  administrative offices of the public employer; and.  The 
  7.1   commissioner shall provide training and technical assistance to 
  7.2   public employers who request it in completing the uniform 
  7.3   baseline determination documents and uniform collective 
  7.4   bargaining agreement settlement documents.  The commissioner 
  7.5   shall at least annually inform public employers of their 
  7.6   obligations to complete and post these forms and to submit 
  7.7   copies of the completed forms to the legislative commission on 
  7.8   employee relations. 
  7.9      (o) (c) From the names provided by representative 
  7.10  organizations, the commissioner shall maintain a list of 
  7.11  arbitrators to conduct teacher discharge or termination hearings 
  7.12  according to section 125.12 or 125.17.  The persons on the 
  7.13  list shall must meet at least one of the following requirements: 
  7.14     (1) be a former or retired judge; 
  7.15     (2) be a qualified arbitrator on the list maintained by the 
  7.16  bureau; 
  7.17     (3) be a present, former, or retired administrative law 
  7.18  judge; or 
  7.19     (4) be a neutral individual who is learned in the law and 
  7.20  admitted to practice in Minnesota, who is qualified by 
  7.21  experience to conduct these hearings, and who is without bias to 
  7.22  either party. 
  7.23     Each year, the Minnesota education association shall 
  7.24  provide a list of seven names, the Minnesota federation of 
  7.25  teachers a list of seven names, and the Minnesota school boards 
  7.26  association a list of 14 names of persons to be on the list.  
  7.27  The commissioner may adopt rules about maintaining and updating 
  7.28  the list. 
  7.29     Sec. 6.  Minnesota Statutes 1994, section 179A.051, is 
  7.30  amended to read: 
  7.31     179A.051 [APPEALS OF COMMISSIONER'S DECISIONS.] 
  7.32     Decisions of the commissioner relating to supervisory, 
  7.33  confidential, essential type I, and professional employees, 
  7.34  appropriateness of a unit, or fair share fee challenges may be 
  7.35  reviewed on certiorari by the court of appeals.  A petition for 
  7.36  a writ of certiorari must be filed and served on the other party 
  8.1   or parties and the commissioner within 30 days from the date of 
  8.2   the mailing of the commissioner's decision.  The petition must 
  8.3   be served on the other party or parties at the party's or 
  8.4   parties' last known address. 
  8.5      Sec. 7.  Minnesota Statutes 1994, section 179A.06, 
  8.6   subdivision 2, is amended to read: 
  8.7      Subd. 2.  [RIGHT TO ORGANIZE.] Public employees have the 
  8.8   right to form and join labor or employee organizations, and have 
  8.9   the right not to form and join such organizations.  Public 
  8.10  employees in an appropriate unit have the right by secret ballot 
  8.11  to designate an exclusive representative to negotiate grievance 
  8.12  procedures and the terms and conditions of employment with their 
  8.13  employer.  Confidential employees of the state and the 
  8.14  University of Minnesota are excluded from bargaining.  Other 
  8.15  confidential employees, supervisory employees, principals, and 
  8.16  assistant principals may form their own organizations.  An 
  8.17  employer shall extend exclusive recognition to a representative 
  8.18  of or an organization of supervisory or confidential employees, 
  8.19  or principals and assistant principals, for the purpose of 
  8.20  negotiating terms or conditions of employment, in accordance 
  8.21  with sections 179A.01 to 179A.25, applicable to essential type I 
  8.22  employees.  
  8.23     Supervisory or confidential employee organizations shall 
  8.24  may not participate in any capacity in any negotiations which 
  8.25  that involve units of employees other than supervisory or 
  8.26  confidential employees.  Except for organizations which that 
  8.27  represent supervisors who are:  (1) firefighters, peace officers 
  8.28  subject to licensure under sections 626.84 to 626.855, guards at 
  8.29  correctional facilities, or employees at hospitals other than 
  8.30  state hospitals; and (2) not state or University of Minnesota 
  8.31  employees, a supervisory or confidential employee organization 
  8.32  which that is affiliated with another employee organization 
  8.33  which that is the exclusive representative of nonsupervisory or 
  8.34  nonconfidential employees of the same public employer shall may 
  8.35  not be certified, or nor act, as, an exclusive representative 
  8.36  for the supervisory or confidential employees.  For the purpose 
  9.1   of this subdivision, affiliation means either direct or indirect 
  9.2   and includes affiliation through a federation or joint body of 
  9.3   employee organizations.  
  9.4      Sec. 8.  Minnesota Statutes 1994, section 179A.09, is 
  9.5   amended to read: 
  9.6      179A.09 [UNIT DETERMINATION.] 
  9.7      Subdivision 1.  [CRITERIA.] In determining the appropriate 
  9.8   unit, the commissioner shall consider the principles and the 
  9.9   coverage of uniform comprehensive position classification and 
  9.10  compensation plans of the employees, professions and skilled 
  9.11  crafts, and other occupational classifications, relevant 
  9.12  administrative and supervisory levels of authority, geographical 
  9.13  location, history, extent of organization, the recommendation of 
  9.14  the parties, and other relevant factors.  The commissioner shall 
  9.15  place particular importance upon the history and extent of 
  9.16  organization, and the desires of the petitioning employee 
  9.17  representatives.  
  9.18     Subd. 2.  [PROHIBITIONS.] The commissioner shall may not 
  9.19  designate an appropriate unit which that includes essential type 
  9.20  I employees with other employees.  
  9.21     Subd. 3.  [DIVISION OF UNITS.] If a designated appropriate 
  9.22  unit contains both peace officers subject to licensure under 
  9.23  sections 626.84 to 626.855 and essential type I employees who 
  9.24  are not peace officers, the commissioner, at the request of a 
  9.25  majority of either the peace officers or the other 
  9.26  essential type I employees within the unit, shall divide the 
  9.27  unit into two separate appropriate units, one for the peace 
  9.28  officers and one for the other essential type I employees. 
  9.29     Sec. 9.  Minnesota Statutes 1994, section 179A.16, is 
  9.30  amended to read: 
  9.31     179A.16 [INTEREST ARBITRATION.] 
  9.32     Subdivision 1.  [NONESSENTIAL TYPE II EMPLOYEES.] An 
  9.33  exclusive representative or an employer of a unit of type II 
  9.34  employees other than essential employees may request interest 
  9.35  arbitration by providing written notice of the request to the 
  9.36  other party and the commissioner.  The written request for 
 10.1   arbitration must specify the items to be submitted to 
 10.2   arbitration and whether conventional, final-offer total-package, 
 10.3   or final-offer item-by-item arbitration is contemplated by the 
 10.4   request. 
 10.5      The items to be submitted to arbitration and the form of 
 10.6   arbitration to be used are subject to mutual agreement.  If an 
 10.7   agreement to arbitrate is reached, it must be reduced to writing 
 10.8   and a copy of the agreement filed with the commissioner.  A 
 10.9   failure to respond, or to reach agreement on the items or form 
 10.10  of arbitration, within 15 days of receipt of the request to 
 10.11  arbitrate constitutes a rejection of the request. 
 10.12     Subd. 2.  [ESSENTIAL TYPE I EMPLOYEES.] An exclusive 
 10.13  representative or employer of a unit of essential type I 
 10.14  employees may petition for binding interest arbitration by 
 10.15  filing a written request with the other party and the 
 10.16  commissioner.  The written request must specify the items which 
 10.17  that the petitioning party wishes to submit to binding 
 10.18  arbitration.  Within 15 days of the request, the commissioner 
 10.19  shall determine whether further mediation of the dispute would 
 10.20  be appropriate and shall only certify matters to the board only 
 10.21  in cases where the commissioner believes that both parties have 
 10.22  made substantial, good-faith bargaining efforts and that an 
 10.23  impasse has occurred. 
 10.24     Subd. 3.  [PROCEDURE.] Within 15 days from the time the 
 10.25  commissioner has certified a matter to be ready for binding 
 10.26  arbitration because of an agreement under subdivision 1 or in 
 10.27  accordance with subdivision 2, both parties shall submit their 
 10.28  final positions on the items in dispute.  In the event of a 
 10.29  dispute over the items to be submitted to binding arbitration 
 10.30  involving essential type I employees, the commissioner shall 
 10.31  determine the items to be decided by arbitration based on the 
 10.32  efforts to mediate the dispute and the positions submitted by 
 10.33  the parties during the course of those efforts.  The parties may 
 10.34  stipulate items to be excluded from arbitration. 
 10.35     Subd. 4.  [SELECTION OF ARBITRATOR OR PANEL OF 
 10.36  ARBITRATORS.] The parties may select persons who are members of 
 11.1   the arbitration roster maintained by the bureau to act as the 
 11.2   arbitrator or panel in their dispute by mutual agreement.  In 
 11.3   the event of a mutual agreement on the arbitrator or panel, the 
 11.4   commissioner shall advise in writing the arbitrator or panel.  
 11.5   If the parties do not mutually agree upon the arbitrator or 
 11.6   panel, the commissioner shall provide the parties to the 
 11.7   interest arbitration a list of seven arbitrators.  The 
 11.8   commissioner shall mail the list of arbitrators to the parties 
 11.9   within five working days.  The parties shall alternately strike 
 11.10  names from the list of arbitrators until only a single 
 11.11  arbitrator remains, unless the parties request and mutually 
 11.12  agree to utilize a panel of three arbitrators.  If the parties 
 11.13  are unable to agree on who shall strike the first name, the 
 11.14  question must be decided by the flip of a coin.  The arbitrator 
 11.15  or arbitrators remaining after the striking procedure shall 
 11.16  constitute the arbitrator or panel. 
 11.17     Subd. 5.  [JURISDICTION OF THE ARBITRATOR OR PANEL.] The 
 11.18  arbitrator or panel selected by the parties has jurisdiction 
 11.19  over the items of dispute certified to and submitted by the 
 11.20  commissioner.  However, the arbitrator or panel has no 
 11.21  jurisdiction or authority to entertain any matter or issue that 
 11.22  is not a term and condition of employment, unless the matter or 
 11.23  issue was included in the employer's final position.  Any 
 11.24  decision or part of a decision issued which that determines a 
 11.25  matter or issue which that is not a term or condition of 
 11.26  employment and was not included in the employer's final position 
 11.27  is void and of no effect.  A decision which that violates, is in 
 11.28  conflict with, or causes a penalty to be incurred under:  (1) 
 11.29  the laws of Minnesota; or (2) rules promulgated adopted under 
 11.30  law, or municipal charters, ordinances, or resolutions, provided 
 11.31  that the rules, charters, ordinances, and resolutions are 
 11.32  consistent with this chapter, has no force or effect and shall 
 11.33  must be returned to the arbitrator or panel to make it 
 11.34  consistent with the laws, rules, charters, ordinances, or 
 11.35  resolutions.  
 11.36     Subd. 6.  [POWERS OF THE ARBITRATOR OR PANEL.] The 
 12.1   arbitrator or panel may issue subpoenas requiring the attendance 
 12.2   and testimony of witnesses and the production of evidence which 
 12.3   that relates to any matter involved in any dispute before it.  
 12.4   The arbitrator or panel may administer oaths and affidavits and 
 12.5   may examine witnesses.  Attendance of witnesses and the 
 12.6   production of evidence may be required from any place in the 
 12.7   state at any hearing.  However, any hearing shall must be held 
 12.8   in the county where the principal administrative offices of the 
 12.9   employer are located, unless another location is selected by 
 12.10  agreement of the parties.  In case of refusal to obey a subpoena 
 12.11  issued under this section, the district court of the state for 
 12.12  the county where the proceeding is pending or where the person 
 12.13  who refuses to obey is found, or resides, or transacts 
 12.14  business shall, on application of the arbitrator or panel, have 
 12.15  has jurisdiction to issue an order requiring the person to 
 12.16  appear before the panel, to produce evidence, or to give 
 12.17  testimony.  Failure to obey the order may be punished by the 
 12.18  court as a contempt.  Posthearing briefs, if any, must be 
 12.19  received by the arbitrator within 14 days of the hearing.  
 12.20     Subd. 7.  [DECISION BY THE ARBITRATOR OR PANEL.] The 
 12.21  decision shall must be issued by the arbitrator or a majority 
 12.22  vote of the panel.  The decision shall must resolve the issues 
 12.23  in dispute between the parties as submitted by the 
 12.24  commissioner.  For principals and assistant principals, the 
 12.25  arbitrator or panel shall be is restricted to selecting between 
 12.26  the final offers of the parties on each impasse item.  Except in 
 12.27  the cities of Minneapolis and St. Paul, for firefighters, the 
 12.28  arbitrator or panel is restricted to selecting between the final 
 12.29  offer total package of one party or the other.  For other 
 12.30  employees, if the parties agree in writing, the arbitrator or 
 12.31  panel shall be is restricted to selecting between the final 
 12.32  offers of the parties on each impasse item, or the final offer 
 12.33  of one or the other parties in its entirety.  In considering a 
 12.34  dispute and issuing its decision, the arbitrator or panel shall 
 12.35  consider the statutory rights and obligations of public 
 12.36  employers to efficiently manage and conduct their operations 
 13.1   within the legal limitations surrounding the financing of these 
 13.2   operations.  The decision shall be is final and binding on all 
 13.3   parties.  
 13.4      The arbitrator or panel shall render its decision within 30 
 13.5   days from the date that all arbitration proceedings have 
 13.6   concluded.  This deadline may be extended only with the approval 
 13.7   of the commissioner.  The arbitrator or panel may not request 
 13.8   that the parties waive their right to have the decision rendered 
 13.9   within 30 days, unless the commissioner grants an extension of 
 13.10  the deadline.  The commissioner shall remove from the roster for 
 13.11  six months the name of any arbitrator who does not render the 
 13.12  decision within 30 days or within the extension granted by the 
 13.13  commissioner.  The commissioner shall adopt rules establishing 
 13.14  criteria to be followed in determining whether an extension 
 13.15  should be granted.  The decision must be for the period stated 
 13.16  in the decision, except that decisions determining contracts for 
 13.17  teacher units are effective to the end of the contract period 
 13.18  determined by section 179A.20.  
 13.19     The arbitrator or panel shall send its decision to the 
 13.20  commissioner, the appropriate representative of the public 
 13.21  employer, and the employees.  If any issues submitted to 
 13.22  arbitration are settled voluntarily before the arbitrator or 
 13.23  panel issues a decision, the arbitrator or panel shall report 
 13.24  the settlement to the commissioner.  
 13.25     The parties may, at any time before or after issuance of a 
 13.26  decision of the arbitrator or panel, agree upon terms and 
 13.27  conditions of employment regardless of the terms and conditions 
 13.28  of employment determined by the decision.  The parties shall, if 
 13.29  so agreeing, execute a written contract or memorandum of 
 13.30  contract.  
 13.31     Subd. 8.  [PAYMENT OF THE ARBITRATOR OR PANEL DATABASE; 
 13.32  FEES, CHARGES, AND PER DIEMS.] The arbitrator or panel members 
 13.33  shall be paid actual and necessary traveling and other expenses 
 13.34  incurred in the performance of their duties plus an allowance of 
 13.35  $180 for each day or part of a day spent considering a dispute.  
 13.36  The commissioner shall maintain a database of all fees, charges, 
 14.1   and per diems charged by each arbitrator.  The database must 
 14.2   include the total charges imposed by the arbitrator in the 
 14.3   previous six interest arbitration cases.  For each arbitration 
 14.4   decision rendered by an arbitrator, the arbitrator shall submit 
 14.5   a copy of the award and a description of all fees, charges, and 
 14.6   per diems assessed to the parties to the commissioner.  Data 
 14.7   from this database must be available to the public.  All costs 
 14.8   of the panel shall must be shared equally by the parties to the 
 14.9   dispute. 
 14.10     Subd. 9.  [NO ARBITRATION.] Failure to reach agreement on 
 14.11  employer payment of, or contributions toward, premiums for group 
 14.12  insurance coverage of retired employees is not subject to 
 14.13  interest arbitration procedures under this section, except for 
 14.14  units of essential type I employees. 
 14.15     Sec. 10.  Minnesota Statutes 1994, section 179A.18, 
 14.16  subdivision 1, is amended to read: 
 14.17     Subdivision 1.  [WHEN AUTHORIZED.] Essential Type I 
 14.18  employees may not strike.  Except as otherwise provided by 
 14.19  subdivision 2 and section 179A.17, subdivision 2, other public 
 14.20  employees may strike only under the following circumstances:  
 14.21     (1)(a) the collective bargaining agreement between their 
 14.22  exclusive representative and their employer has expired or, if 
 14.23  there is no agreement, impasse under section 179A.17, 
 14.24  subdivision 2, has occurred; and 
 14.25     (b) the exclusive representative and the employer have 
 14.26  participated in mediation over a period of at least 45 days, 
 14.27  provided that the mediation period established by section 
 14.28  179A.17, subdivision 2, governs negotiations under that section, 
 14.29  and provided that for the purposes of this subclause the 
 14.30  mediation period commences on the day following receipt by the 
 14.31  commissioner of a request for mediation; or 
 14.32     (2) the employer violates section 179A.13, subdivision 2, 
 14.33  clause (9); or 
 14.34     (3) in the case of state employees, 
 14.35     (a) (i) the legislative commission on employee relations 
 14.36  has rejected a negotiated agreement or arbitration decision 
 15.1   during a legislative interim; or 
 15.2      (b) (ii) the entire legislature rejects or fails to ratify 
 15.3   a negotiated agreement or arbitration decision, which has been 
 15.4   approved during a legislative interim by the legislative 
 15.5   commission on employee relations, at a special legislative 
 15.6   session called to consider it, or at its next regular 
 15.7   legislative session, whichever occurs first.  
 15.8      Sec. 11.  Minnesota Statutes 1994, section 353C.02, is 
 15.9   amended to read: 
 15.10     353C.02 [CORRECTIONAL SERVICE EMPLOYEES.] 
 15.11     A local government correctional service employee is a 
 15.12  person who: 
 15.13     (1) meets the definition of "essential type I employee" in 
 15.14  section 179A.03, subdivision 7, excluding state employees, 
 15.15  University of Minnesota employees, firefighters, peace officers 
 15.16  subject to licensure under sections 626.84 to 626.855, employees 
 15.17  of hospitals other than state hospitals, confidential employees, 
 15.18  supervisory employees other than employees who supervise 
 15.19  correctional officers and who are stationed at correctional 
 15.20  facilities or city or county jails, principals, and assistant 
 15.21  principals; 
 15.22     (2) is employed by Dakota county, Hennepin county, Ramsey 
 15.23  county, or Washington county, if the county elects to 
 15.24  participate under section 353C.04 or by a joint-powers 
 15.25  correctional agency in which St. Louis county or its 
 15.26  municipalities participate, if the governing body of the agency 
 15.27  elects to participate under section 353C.04; 
 15.28     (3) is a public employee within the meaning of section 
 15.29  353.01, subdivisions 2 and 2a; and 
 15.30     (4) is not at the time of the exercise of the participation 
 15.31  option under section 353C.04 a member of the basic program of 
 15.32  the public employees retirement association or a member of the 
 15.33  public employees police and fire fund. 
 15.34     Sec. 12.  Minnesota Statutes 1994, section 549.09, 
 15.35  subdivision 1, is amended to read: 
 15.36     Subdivision 1.  [WHEN OWED; RATE.] (a) When a judgment or 
 16.1   award is for the recovery of money, including a judgment for the 
 16.2   recovery of taxes, interest from the time of the verdict, award, 
 16.3   or report until judgment is finally entered shall be computed by 
 16.4   the court administrator or arbitrator as provided in clause (c) 
 16.5   and added to the judgment or award.  
 16.6      (b) Except as otherwise provided by contract or allowed by 
 16.7   law, preverdict, preaward, or prereport interest on pecuniary 
 16.8   damages shall be computed as provided in clause (c) from the 
 16.9   time of the commencement of the action or a demand for 
 16.10  arbitration, or the time of a written notice of claim, whichever 
 16.11  occurs first, except as provided herein.  The action must be 
 16.12  commenced within two years of a written notice of claim for 
 16.13  interest to begin to accrue from the time of the notice of 
 16.14  claim.  If either party serves a written offer of settlement, 
 16.15  the other party may serve a written acceptance or a written 
 16.16  counteroffer within 30 days.  After that time, interest on the 
 16.17  judgment or award shall be calculated by the judge or arbitrator 
 16.18  in the following manner.  The prevailing party shall receive 
 16.19  interest on any judgment or award from the time of commencement 
 16.20  of the action or a demand for arbitration, or the time of a 
 16.21  written notice of claim, or as to special damages from the time 
 16.22  when special damages were incurred, if later, until the time of 
 16.23  verdict, award, or report only if the amount of its offer is 
 16.24  closer to the judgment or award than the amount of the opposing 
 16.25  party's offer.  If the amount of the losing party's offer was 
 16.26  closer to the judgment or award than the prevailing party's 
 16.27  offer, the prevailing party shall receive interest only on the 
 16.28  amount of the settlement offer or the judgment or award, 
 16.29  whichever is less, and only from the time of commencement of the 
 16.30  action or a demand for arbitration, or the time of a written 
 16.31  notice of claim, or as to special damages from when the special 
 16.32  damages were incurred, if later, until the time the settlement 
 16.33  offer was made.  Subsequent offers and counteroffers supersede 
 16.34  the legal effect of earlier offers and counteroffers.  For the 
 16.35  purposes of clause (2), the amount of settlement offer must be 
 16.36  allocated between past and future damages in the same proportion 
 17.1   as determined by the trier of fact.  Except as otherwise 
 17.2   provided by contract or allowed by law, preverdict, preaward, or 
 17.3   prereport interest shall not be awarded on the following:  
 17.4      (1) judgments, awards, or benefits in workers' compensation 
 17.5   cases, but not including third-party actions; 
 17.6      (2) judgments or awards for future damages; 
 17.7      (3) punitive damages, fines, or other damages that are 
 17.8   noncompensatory in nature; 
 17.9      (4) judgments or awards not in excess of the amount 
 17.10  specified in section 491A.01; and 
 17.11     (5) that portion of any verdict, award, or report which is 
 17.12  founded upon interest, or costs, disbursements, attorney fees, 
 17.13  or other similar items added by the court or arbitrator. 
 17.14     (c) The interest shall be computed as simple interest per 
 17.15  annum.  The rate of interest shall be based on the secondary 
 17.16  market yield of one year United States treasury bills, 
 17.17  calculated on a bank discount basis as provided in this section. 
 17.18     On or before the 20th day of December of each year the 
 17.19  state court administrator shall determine the rate from the 
 17.20  secondary market yield on one year United States treasury bills 
 17.21  for the most recent calendar month, reported on a monthly basis 
 17.22  in the latest statistical release of the board of governors of 
 17.23  the federal reserve system.  This yield, rounded to the nearest 
 17.24  one percent, shall be the annual interest rate during the 
 17.25  succeeding calendar year.  The state court administrator shall 
 17.26  communicate the interest rates to the court administrators and 
 17.27  sheriffs for use in computing the interest on verdicts and shall 
 17.28  make the interest rates available to arbitrators. 
 17.29     When a judgment creditor, or the judgment creditor's 
 17.30  attorney or agent, has received a payment after entry of 
 17.31  judgment, whether the payment is made voluntarily by or on 
 17.32  behalf of the judgment debtor, or is collected by legal process 
 17.33  other than execution levy where a proper return has been filed 
 17.34  with the court administrator, the judgment creditor, or the 
 17.35  judgment creditor's attorney, before applying to the court 
 17.36  administrator for an execution shall file with the court 
 18.1   administrator an affidavit of partial satisfaction.  The 
 18.2   affidavit must state the dates and amounts of payments made upon 
 18.3   the judgment after the most recent affidavit of partial 
 18.4   satisfaction filed, if any; the part of each payment that is 
 18.5   applied to taxable disbursements and to accrued interest and to 
 18.6   the unpaid principal balance of the judgment; and the accrued, 
 18.7   but the unpaid interest owing, if any, after application of each 
 18.8   payment. 
 18.9      (d) This section does not apply to arbitrations between 
 18.10  employers and employees under chapter 179 or 179A.  An 
 18.11  arbitrator is neither required to nor prohibited from awarding 
 18.12  interest under chapter 179 or under section 179A.16 for 
 18.13  essential type I employees. 
 18.14     Sec. 13.  Minnesota Statutes 1994, section 572.15, is 
 18.15  amended to read: 
 18.16     572.15 [AWARD.] 
 18.17     (a) The award shall be in writing and signed by the 
 18.18  arbitrators joining in the award.  The award must include 
 18.19  interest, except this does not apply to arbitrations between 
 18.20  employers and employees under chapter 179 or 179A.  An 
 18.21  arbitrator is neither required to nor prohibited from awarding 
 18.22  interest under chapter 179 or under section 179A.16 for 
 18.23  essential type I employees.  The arbitrators shall deliver a 
 18.24  copy to each party personally or by certified mail, or as 
 18.25  provided in the agreement. 
 18.26     (b) An award shall be made within the time fixed therefor 
 18.27  by the agreement or, if not so fixed, within such time as the 
 18.28  court orders on application of a party.  The parties may extend 
 18.29  the time in writing either before or after the expiration 
 18.30  thereof.  A party waives the objection that an award was not 
 18.31  made within the time required unless the party notifies the 
 18.32  arbitrators of an objection prior to the delivery of the award 
 18.33  to the party. 
 18.34     Sec. 14.  [INTEREST ARBITRATORS ROSTER; ABOLISHED.] 
 18.35     The roster of arbitrators maintained by the bureau of 
 18.36  mediation services is abolished January 1, 1996.  Appointments 
 19.1   to a new roster must be made in accordance with Minnesota 
 19.2   Statutes, section 179A.04, subdivision 3, paragraph (a), clause 
 19.3   (13). 
 19.4      Sec. 15.  [REVISOR INSTRUCTION.] 
 19.5      The revisor of statutes shall change each reference to 
 19.6   section 179A.04, subdivision 3, clause (h), to section 179A.04, 
 19.7   subdivision 3, paragraph (a), clause (8), in each place it 
 19.8   occurs in Minnesota Statutes 1996.