HF 3585

as introduced - 89th Legislature (2015 - 2016) Posted on 03/24/2016 02:25pm

A bill for an act
relating to public employment; ratifying labor agreements and compensation
plans; repealing authority for exclusive representatives to charge fair share
fees and for certain dues deductions; requiring open meetings; requiring
affirmative approval before interim implementation of state employee collective
bargaining agreements; requiring legislative approval of political subdivision
compensation waivers; prohibiting wage or salary increases after contract
expiration; forbidding retroactive wage or salary increases; limiting certain
compensation for unused vacation; changing law regarding time off to perform
exclusive representative duties; amending Minnesota Statutes 2014, sections
3.855, subdivision 2; 16A.133, subdivision 1; 43A.17, subdivision 9, by adding
a subdivision; 179A.04, subdivisions 1, 3; 179A.06, subdivision 6; 179A.07,
subdivision 6; 179A.20, subdivision 6, by adding a subdivision; 179A.60,
subdivision 7; 256B.0711, subdivision 4; Minnesota Statutes 2015 Supplement,
section 179A.051; proposing coding for new law in Minnesota Statutes, chapter
179A; repealing Minnesota Statutes 2014, sections 179A.03, subdivision 9;
179A.06, subdivision 3; 179A.14, subdivision 3.

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

ARTICLE 1

CONTRACTS AND COMPENSATION PLANS

Section 1. new text begin LABOR CONTRACT AND COMPENSATION PLAN APPROVAL.
new text end

new text begin Subdivision 1. new text end

new text begin American Federation of State, County, and Municipal Employees.
new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of State,
County, and Municipal Employees, Council 5, submitted to the Legislative Coordinating
Commission Subcommittee on Employee Relations on October 29, 2015, and implemented
after 30 days as provided in Minnesota Statutes, section 3.855, subdivision 2, is ratified.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Association of Professional Employees. new text end

new text begin The labor agreement
between the state of Minnesota and the Minnesota Association of Professional Employees,
submitted to the Legislative Coordinating Commission Subcommittee on Employee
Relations on October 29, 2015, and implemented after 30 days as provided in Minnesota
Statutes, section 3.855, subdivision 2, is ratified.
new text end

new text begin Subd. 3. new text end

new text begin Middle Management Association. new text end

new text begin The labor agreement between the state
of Minnesota and the Middle Management Association, submitted to the Legislative
Coordinating Commission Subcommittee on Employee Relations on October 29, 2015,
and implemented after 30 days as provided in Minnesota Statutes, section 3.855,
subdivision 2, is ratified.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Nurses Association. new text end

new text begin The labor agreement between the
state of Minnesota and the Minnesota Nurses Association, approved by the Legislative
Coordinating Commission Subcommittee on Employee Relations on January 15, 2016,
is ratified.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner's plan. new text end

new text begin The commissioner of management and budget's
compensation plan for unrepresented state employees, submitted to the Legislative
Coordinating Commission Subcommittee on Employee Relations on October 29, 2015,
is approved with these changes:
new text end

new text begin (1) the provisions in section 14, "Salary Administration" that provide for general
salary increases effective July 1, 2015, and July 1, 2016, are not approved;
new text end

new text begin (2) the provisions in section 14, "Salary Administration" that provide for
performance-based increases that are to be effective December 30, 2015, and December
28, 2016, may not exceed two percent; and
new text end

new text begin (3) the provisions in section 14, "Salary Administration" that provide for
performance-based increases expire June 30, 2017.
new text end

new text begin Subd. 6. new text end

new text begin Managerial compensation plan. new text end

new text begin The managerial compensation plan,
submitted to the Legislative Coordinating Commission Subcommittee on Employee
Relations on October 29, 2015, is approved with these changes:
new text end

new text begin (1) the provisions in section 14, "Salary Administration" that provide for general
salary increases effective July 1, 2015, and July 1, 2016, are not approved;
new text end

new text begin (2) the provisions in section 14, "Salary Administration" that provide for
performance-based increases that are to be effective December 30, 2015, and December
28, 2016, may not exceed two percent; and
new text end

new text begin (3) the provisions in section 14, "Salary Administration" that provide for
performance-based increases expire June 30, 2017.
new text end

ARTICLE 2

FAIR SHARE AND DUES DEDUCTION

Section 1.

Minnesota Statutes 2014, section 16A.133, subdivision 1, is amended to read:

Subdivision 1.

Payroll direct deposit and deductions.

An agency head in the
executive, judicial, and legislative branch shall, upon written request signed by an
employee, directly deposit all or part of an employee's pay to those credit unions or
financial institutions, as defined in section 47.015, designated by the employee.

An agency head must, upon written request of an employee, deduct from the pay of
the employee a requested amount to be paid to the Minnesota Benefit Association deleted text begin , or to
any organizations contemplated by section 179A.06, of which the employee is a member deleted text end .

Sec. 2.

Minnesota Statutes 2014, section 179A.04, subdivision 1, is amended to read:

Subdivision 1.

Petitions.

The commissioner shall accept and investigate all petitions
for:

(1) certification or decertification as the exclusive representative of an appropriate
unit;

(2) mediation services;

(3) any election or other voting procedures provided for in sections 179A.01 to
179A.25; new text begin and
new text end

(4) certification to the Board of Arbitration deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) fair share fee challenges, upon the receipt of a filing fee. The commissioner shall
hear and decide all issues in a fair share fee challenge.
deleted text end

Sec. 3.

Minnesota Statutes 2014, section 179A.04, subdivision 3, is amended to read:

Subd. 3.

Other duties.

(a) The commissioner shall:

(1) provide mediation services as requested by the parties until the parties reach
agreement, and may continue to assist parties after they have submitted their final
positions for interest arbitration;

(2) issue notices, subpoenas, and orders required by law to carry out duties under
sections 179A.01 to 179A.25;

(3) assist the parties in formulating petitions, notices, and other papers required to be
filed with the commissioner or the board;

(4) conduct elections;

(5) certify the final results of any election or other voting procedure conducted
under sections 179A.01 to 179A.25;

(6) adopt rules relating to the administration of this chapter and the conduct of
hearings and elections;

(7) receive, catalogue, file, and make available to the public all decisions of
arbitrators and panels authorized by sections 179A.01 to 179A.25, all grievance arbitration
decisions to the extent the decision is public under section 13.43, subdivision 2, paragraph
(b), and the commissioner's orders and decisions;

(8) adopt, subject to chapter 14, a grievance procedure that fulfills the purposes of
section 179A.20, subdivision 4, that is available to any employee in a unit not covered by
a contractual grievance procedure;

(9) maintain a schedule of state employee classifications or positions assigned to
each unit established in section 179A.10, subdivision 2;

(10) collect fees established by rule for empanelment of persons on the labor
arbitrator roster maintained by the commissioner deleted text begin or in conjunction with fair share fee
challenges deleted text end . Arbitrator application fees will be $100 per year for initial applications and
renewals effective July 1, 2007;

(11) provide technical support and assistance to voluntary joint labor-management
committees established for the purpose of improving relationships between exclusive
representatives and employers, at the discretion of the commissioner;

(12) provide to the parties a list of arbitrators as required by section 179A.16,
subdivision 4;

(13) maintain a list of up to 60 arbitrators for referral to employers and exclusive
representatives for the resolution of grievance or interest disputes. Each person on the
list must be knowledgeable about collective bargaining and labor relations in the public
sector, well versed in state and federal labor law, and experienced in and knowledgeable
about labor arbitration. To the extent practicable, the commissioner shall appoint members
to the list so that the list is gender and racially diverse; and

(14) upon request of the board, provide administrative support and other assistance
to the board, including assistance in development and adoption of board rules.

(b) From the names provided by representative organizations, the commissioner
shall maintain a list of arbitrators to conduct teacher discharge or termination hearings
according to section 122A.40 or 122A.41. The persons on the list must meet at least
one of the following requirements:

(1) be a former or retired judge;

(2) be a qualified arbitrator on the list maintained by the bureau;

(3) be a present, former, or retired administrative law judge; or

(4) be a neutral individual who is learned in the law and admitted to practice in
Minnesota, who is qualified by experience to conduct these hearings, and who is without
bias to either party.

Each year, education Minnesota shall provide a list of up to 14 names and the Minnesota
School Boards Association a list of up to 14 names of persons to be on the list. The
commissioner may adopt rules about maintaining and updating the list.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 179A.051, is amended to read:

179A.051 APPEALS OF COMMISSIONER'S DECISIONS.

(a) Decisions of the commissioner relating to supervisory, confidential, essential,
and professional employees, new text begin or new text end appropriateness of a unit deleted text begin , or fair share fee challenges deleted text end may
be reviewed on certiorari by the Court of Appeals. A petition for a writ of certiorari must
be filed and served on the other party or parties and the commissioner within 30 days from
the date of the mailing of the commissioner's decision. The petition must be served on the
other party or parties at the party's or parties' last known address.

(b) Decisions of the commissioner relating to unfair labor practices under section
179A.12, subdivision 11, may be appealed to the board if the appeal is filed with the board
and served on all other parties no later than 30 days after service of the commissioner's
decision.

Sec. 5.

Minnesota Statutes 2014, section 179A.06, subdivision 6, is amended to read:

Subd. 6.

Dues checkoff.

Public employees new text begin , other than state employees, new text end have the
right to request and be allowed dues checkoff for the exclusive representative. In the
absence of an exclusive representative, public employees have the right to request and be
allowed dues checkoff for the organization of their choice.

Sec. 6.

Minnesota Statutes 2014, section 179A.60, subdivision 7, is amended to read:

Subd. 7.

Contract negotiations and administration.

The exclusive representative
of employees of a new joint powers entity shall upon certification be responsible to
negotiate a new collective bargaining agreement, file grievances, and otherwise administer
the prior collective bargaining agreement until a new collective bargaining agreement is
agreed to deleted text begin , and to receive dues or fair-share fees deleted text end .

Sec. 7.

Minnesota Statutes 2014, section 256B.0711, subdivision 4, is amended to read:

Subd. 4.

Duties of the commissioner of human services.

(a) The commissioner
shall afford to all participants within a covered program the option of employing an
individual provider to provide direct support services.

(b) The commissioner shall ensure that all employment of individual providers is
in conformity with this section and section 179A.54, including by modifying program
operations as necessary to ensure proper classification of individual providers, to require
that all relevant vendors within covered programs assist and cooperate as needed,
including providers of fiscal support, fiscal intermediary, financial management, or similar
services to provide support to participants and participants' representatives with regard to
employing individual providers, and to otherwise fulfill the requirements of this section,
including the provisions of paragraph (f).

(c) The commissioner shall:

(1) establish for all individual providers compensation rates, payment terms and
practices, and any benefit terms, provided that these rates and terms may permit individual
provider variations based on traditional and relevant factors otherwise permitted by law;

(2) provide for required orientation programs within three months of hire for
individual providers newly hired on or after January 1, 2015, regarding their employment
within the covered programs through which they provide services;

(3) have the authority to provide for relevant training and educational opportunities
for individual providers, as well as for participants and participants' representatives
who receive services from individual providers, including opportunities for individual
providers to obtain certification documenting additional training and experience in areas
of specialization;

(4) have the authority to provide for the maintenance of a public registry of
individuals who have consented to be included to:

(i) provide routine, emergency, and respite referrals of qualified individual providers
who have consented to be included in the registry to participants and participants'
representatives;

(ii) enable participants and participants' representatives to gain improved access
to, and choice among, prospective individual providers, including by having access
to information about individual providers' training, educational background, work
experience, and availability for hire; and

(iii) provide for appropriate employment opportunities for individual providers and a
means by which they may more easily remain available to provide services to participants
within covered programs; and

(5) establish other appropriate terms and conditions of employment governing the
workforce of individual providers.

(d) The commissioner's authority over terms and conditions of individual providers'
employment, including compensation, payment, and benefit terms, employment
opportunities within covered programs, individual provider orientation, training, and
education opportunities, and the operation of public registries shall be subject to the state's
obligations to meet and negotiate under chapter 179A, as modified and made applicable
to individual providers under section 179A.54, and to agreements with any exclusive
representative of individual providers, as authorized by chapter 179A, as modified and
made applicable to individual providers under section 179A.54. Except to the extent
otherwise provided by law, the commissioner shall not undertake activities in paragraph
(c), clauses (3) and (4), prior to July 1, 2015, unless included in a negotiated agreement
and an appropriation has been provided by the legislature to the commissioner.

(e) The commissioner shall cooperate in the implementation of section 179A.54
with the commissioner of management and budget in the same manner as would be
required of an appointing authority under section 179A.22 with respect to any negotiations
between the executive branch of the state and the exclusive representative of individual
providers, as authorized under sections 179A.22 and 179A.54. Any entity providing
relevant services within covered programs, including providers of fiscal support, fiscal
intermediary, financial management, or similar services to provide support to participants
and participants' representatives with regard to employing individual providers shall assist
and cooperate with the commissioner of human services in the operations of this section,
including with respect to the commissioner's obligations under paragraphs (b) and (f).

(f) The commissioner shall, no later than September 1, 2013, and then monthly
thereafter, compile and maintain a list of the names and addresses of all individual
providers who have been paid for providing direct support services to participants within
the previous six months. The list shall not include the name of any participant, or indicate
that an individual provider is a relative of a participant or has the same address as a
participant. The commissioner shall share the lists with others as needed for the state to
meet its obligations under chapter 179A as modified and made applicable to individual
providers under section 179A.54, and to facilitate the representational processes under
section 179A.54, subdivisions 9 and 10. In order to effectuate this section and section
179A.54, questions of employee organization access to other relevant data on individual
providers relating to their employment or prospective employment within covered
programs shall be governed by chapter 179A and section 13.43, and shall be treated the
same as labor organization access to personnel data under section 13.43, subdivision 6.
This shall not include access to private data on participants or participants' representatives.
Nothing in this section or section 179A.54 shall alter the access rights of other private
parties to data on individual providers.

(g) The commissioner shall immediately commence all necessary steps to ensure
that services offered under all covered programs are offered in conformity with this
section, to gather all information that may be needed for promptly compiling lists required
under this section, including information from current vendors within covered programs,
and to complete any required modifications to currently operating covered programs by
September 1, 2013.

deleted text begin (h) Beginning January 1, 2014, the commissioner of human services shall
specifically require that any fiscal support, fiscal intermediary, financial management, or
similar entities providing payroll assistance services with respect to individual providers
shall make all needed deductions on behalf of the state of dues check off amounts
or fair-share fees for the exclusive representative, as provided in section 179A.06,
subdivisions 3 and 6. All contracts with entities for the provision of payroll-related
services shall include this requirement.
deleted text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 179A.03, subdivision 9; and 179A.06, subdivision
3, new text end new text begin are repealed.
new text end

ARTICLE 3

OTHER PUBLIC EMPLOYMENT PROVISIONS

Section 1.

Minnesota Statutes 2014, section 3.855, subdivision 2, is amended to read:

Subd. 2.

State employee negotiations.

(a) The commissioner of management and
budget shall regularly advise the commission on the progress of collective bargaining
activities with state employees under the state Public Employment Labor Relations Act.
During negotiations, the commission may make recommendations to the commissioner
as it deems appropriate but no recommendation shall impose any obligation or grant any
right or privilege to the parties.

(b) The commissioner shall submit to the chair of the commission any negotiated
collective bargaining agreements, arbitration awards, compensation plans, or salaries for
legislative approval or disapproval. Negotiated agreements shall be submitted within five
days of the date of approval by the commissioner or the date of approval by the affected state
employees, whichever occurs later. Arbitration awards shall be submitted within five days
of their receipt by the commissioner. If the commission disapproves a collective bargaining
agreement, award, compensation plan, or salary, the commission shall specify in writing
to the parties those portions with which it disagrees and its reasons. If the commission
approves a collective bargaining agreement, award, compensation plan, or salary, it shall
submit the matter to the legislature to be accepted or rejected under this section.

(c) When the legislature is not in session, the commission may give interim approval
to a negotiated collective bargaining agreement, salary, compensation plan, or arbitration
award. deleted text begin When the legislature is not in session, failure of the commission to disapprove a
collective bargaining agreement or arbitration award within 30 days constitutes approval. deleted text end
The commission shall submit the negotiated collective bargaining agreements, salaries,
compensation plans, or arbitration awards for which it has provided approval to the entire
legislature for ratification at a special legislative session called to consider them or at its
next regular legislative session as provided in this section. Approval or disapproval by the
commission is not binding on the legislature.

(d) When the legislature is not in session, the proposed collective bargaining
agreement, arbitration decision, salary, or compensation plan must be implemented upon
its approval by the commission, and state employees covered by the proposed agreement
or arbitration decision do not have the right to strike while the interim approval is in
effect. Wages and economic fringe benefit increases provided for in the agreement or
arbitration decision paid in accordance with the interim approval by the commission are
not affected, but the wages or benefit increases must cease to be paid or provided effective
upon the rejection of the agreement, arbitration decision, salary, or compensation plan, or
upon adjournment of the legislature without acting on it.

Sec. 2.

Minnesota Statutes 2014, 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, may not exceed 110 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) Beginning in 2006, the limit in paragraph (a) must be adjusted annually in
January. The limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all-urban consumers from October of the
second prior year to October of the immediately prior year.

(c) 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 must 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 must 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 is the annual cost to the political
subdivision for the provision of the compensation.

(d) 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.

(e) 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. The commissioner may not increase the
limitation until the deleted text begin commissioner has presented the deleted text end proposed increase deleted text begin 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 is approved by the Legislative Coordinating
Commission and the legislature under section 3.855 new text end . If the commissioner grants or granted
an increase under this paragraph, the new limitation must be adjusted beginning in August
2005 and in each subsequent calendar year in January by the percentage increase equal to
the percentage increase, if any, in the Consumer Price Index for all-urban consumers from
October of the second prior year to October of the immediately prior year.

Sec. 3.

Minnesota Statutes 2014, section 43A.17, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Limit on compensation for unused vacation. new text end

new text begin An employee terminating
state service under a compensation plan established under Minnesota Statutes 2015,
section 43A.18, subdivision 2, 3, 3a, 3b, or 4, paragraph (c), may not be compensated for
more than 275 hours of vacation leave. To be eligible to liquidate unused vacation leave,
an employee covered by one of these plans and terminating service must have at least six
months of continuous vacation eligible service. An employee covered by one of these
plans and terminating service who has ten years or more of continuous state service must
liquidate unused vacation leave to the employee's health care savings plan.
new text end

Sec. 4.

Minnesota Statutes 2014, section 179A.07, subdivision 6, is amended to read:

Subd. 6.

Time off.

A public employer must afford reasonable time off to elected
officers or appointed representatives of the exclusive representative to conduct the duties
of the exclusive representative and must, upon request, provide for leaves of absence to
elected or appointed officials of the exclusive representative or to a full-time appointed
official of an exclusive representative of teachers in another Minnesota school district. new text begin Time
off provided under this subdivision must not be used to engage in any political activities.
new text end

Sec. 5.

new text begin [179A.165] LABOR NEGOTIATION, MEDIATION, AND
ARBITRATION OPEN TO THE PUBLIC.
new text end

new text begin (a) All negotiations between a representative of a public employer and the exclusive
representative of a labor organization for an agreement establishing terms and conditions
of employment must be open to the public. All meetings involving a representative of
a public employer, the exclusive representative of a labor organization, and any labor
arbitrator, mediator, or similar labor dispute meeting facilitator seeking an agreement
establishing terms and conditions of employment must be open to the public.
new text end

new text begin (b) Notwithstanding paragraph (a), a meeting may be closed to the public for the
specific purpose of receiving information about a specific employee when the information
has a direct bearing on the issues being negotiated, arbitrated, or mediated, and the release
of that information would violate the employee's reasonable expectation of privacy.
new text end

new text begin (c) For any public meeting under this section, any printed materials shared between
the parties to the meeting must be made available to members of the public during or
prior to the meeting.
new text end

new text begin (d) For any public meeting under this section, public employers must follow the
notification procedures for special meetings of public bodies under section 13D.04,
subdivision 2. In addition, public employers must post notice of the public meeting on the
home page of the public employer's Web site at least four days in advance of the meeting.
new text end

new text begin (e) For any public meeting under this section, the public employer must arrange a
room that the employer anticipates will be large enough to accommodate members of
the public who wish to attend the meeting.
new text end

Sec. 6.

Minnesota Statutes 2014, section 179A.20, subdivision 6, is amended to read:

Subd. 6.

Contract in effect.

new text begin (a) Except as provided in paragraph (b), new text end during the
period after contract expiration and prior to the date when the right to strike matures, and
for additional time if the parties agree, the terms of an existing contract shall continue in
effect and shall be enforceable upon both parties.

new text begin (b) During the period after contract expiration, no increase in an hourly wage rate or
salary may take effect. A contract may not contain a provision contrary to this paragraph.
new text end

Sec. 7.

Minnesota Statutes 2014, section 179A.20, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin No retroactive increases. new text end

new text begin A contract may not provide a retroactive
increase in an hourly wage rate or salary.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 179A.14, subdivision 3, new text end new text begin is repealed.
new text end