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HF 3796

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; proposing an amendment to the Minnesota
Constitution, article III, by adding a section; article IV, section 9; article
V, section 4; establishing a council to prescribe salaries for legislators and
constitutional officers; abolishing the compensation council; amending
Minnesota Statutes 2006, sections 15A.083, subdivision 6a; 43A.17, subdivision
9; 116S.03, subdivision 1; 352.029, subdivision 2a; 353.017, subdivision 7;
354.41, subdivision 4a; 480A.02, subdivision 7; repealing Minnesota Statutes
2006, section 15A.082.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENTS PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, a section shall be added to article III, to read:
new text end

new text begin Sec. 2. new text end

new text begin A council shall prescribe salaries for legislators and for the executive officers
specified in article V, section 1. With respect to legislators, the council shall also prescribe
any per diem living expenses and reimbursement for lodging and travel expenses. Other
items of compensation for legislators and executive officers, including insurance and
retirement benefits, shall be determined as provided by law.
new text end

new text begin The council consists of the following members: eight nonjudges appointed by the
chief justice of the Supreme Court and one member from each congressional district
appointed by the governor. Four members appointed by the governor and four members
appointed by the Supreme Court must belong to the political party that has the most
members in the legislature. The remaining members appointed by the governor and four
members appointed by the Supreme Court must belong to the political party that has the
second-most members in the legislature. However, if Minnesota has more than eight
congressional districts, half or more of the members appointed by the governor must be
from the political party that has the most members in the legislature. The council must
prescribe salaries by May of each odd-numbered year, with any changes in salary to
take effect on January 1 of the next year.
new text end

new text begin article IV, section 9, will read:
new text end

Sec. 9.

The deleted text begin compensationdeleted text end new text begin salary and other items of compensation specified in article
III, section 2,
new text end of senators and representatives shall be prescribed by deleted text begin law. No increase of
compensation shall take effect during the period for which the members of the existing
house of representatives may have been elected
deleted text end new text begin the council established in article III,
section 2. Other items of compensation for legislators shall be determined as provided by
law
new text end .

new text begin article V, section 4, will read:
new text end

Sec. 4.

The term of office of the secretary of state, attorney general and state auditor is
four years and until a successor is chosen and qualified. The duties deleted text begin and salariesdeleted text end of the
executive officers shall be prescribed by law. new text begin The salaries of the executive officers shall be
prescribed by the council established in article III, section 2. Other items of compensation
for executive officers shall be determined as provided by law.
new text end

Sec. 2. new text begin SCHEDULE AND QUESTION.
new text end

new text begin The proposed amendment must be submitted to the people at the 2008 general
election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to remove legislators' ability to set
their own salaries and instead establish a council to prescribe salaries for legislators and
elected executive branch officers?
new text end

new text begin Yes .......
new text end
new text begin No ......."
new text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

Minnesota Statutes 2006, section 15A.083, subdivision 6a, is amended to
read:


Subd. 6a.

Administrative law judge; salaries.

The salary of the chief
administrative law judge is 98.52 percent of the salary of a district court judge. The
salaries of the assistant chief administrative law judge and administrative law judge
supervisors are 93.60 percent of the salary of a district court judge. The salary of an
administrative law judge employed by the Office of Administrative Hearings is 88.67
percent of the salary of a district court judge deleted text begin as set under section 15A.082, subdivision 3deleted text end .

Sec. 2.

Minnesota Statutes 2006, 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 110
percent of the salary of the governor deleted text begin as set under section 15A.082deleted text end , 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) shall be adjusted annually in
January. The limit shall 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 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.

(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 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. If the commissioner grants or granted an
increase under this paragraph, the new limitation shall 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 2006, section 116S.03, subdivision 1, is amended to read:


Subdivision 1.

Generally.

The board shall appoint and set the compensation for the
executive director, who serves as chief executive officer of the corporation. The executive
director's compensation may not exceed 95 percent of the salary of the governor deleted text begin set under
section 15A.082
deleted text end . The board may designate the executive director as its general agent.
Subject to the approval of the board, the executive director shall employ staff consultants
and other agents necessary to carry out the mission of the corporation.

Sec. 4.

Minnesota Statutes 2006, section 352.029, subdivision 2a, is amended to read:


Subd. 2a.

Limitations on salary for benefits and contributions.

(a) The covered
salary for a labor organization employee who qualifies for membership under this section
or section 352.75 is limited to the lesser of:

(1) the employee's actual salary as defined under section 352.01, subdivision 13; or

(2) 75 percent of the salary of the governor deleted text begin as set under section 15A.082deleted text end .

(b) The limited covered salary determined under this subdivision must be used in
determining employee, employer, and employer additional contributions under section
352.04, subdivisions 2 and 3, and in determining retirement annuities and other benefits
under this chapter and chapter 356.

Sec. 5.

Minnesota Statutes 2006, section 353.017, subdivision 7, is amended to read:


Subd. 7.

Limitations on salary and contributions.

The covered salary for a labor
organization employee who qualifies for membership under this section is limited to
the lesser of:

(1) the employee's actual salary as defined under section 353.01, subdivision 10; or

(2) 75 percent of the salary of the governor deleted text begin as set under section 15A.082deleted text end .

The limited covered salary determined under this subdivision must be used in
determining employee and employer contributions under section 353.27, subdivisions 2,
3, and 3a
, and in determining retirement annuities and other benefits under this chapter
and chapter 356.

Sec. 6.

Minnesota Statutes 2006, section 354.41, subdivision 4a, is amended to read:


Subd. 4a.

Limitations on salary and contributions.

The covered salary for a labor
organization employee who qualifies for membership under this section is limited to
the lesser of:

(1) the employee's actual salary as defined under section 354.05, subdivision 35; or

(2) 75 percent of the salary of the governor deleted text begin as set under section 15A.082deleted text end .

The limited covered salary determined under this subdivision must be used in
determining employee, employer, and employer additional contributions under section
354.42, subdivisions 2, 3, and 5, and in determining retirement annuities and other benefits
under this chapter and chapter 356.

Sec. 7.

Minnesota Statutes 2006, section 480A.02, subdivision 7, is amended to read:


Subd. 7.

Compensation; travel expenses.

The salary of a judge of the Court of
Appeals shall be as deleted text begin provided by section 15A.082deleted text end new text begin prescribed by the legislaturenew text end . Travel
expenses shall be paid by the state in the same manner and amount as provided for judges
of the district court in section 484.54.

Sec. 8. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin Wherever "under section 15A.082"; "under section 15A.082, subdivision 3"; or "by
section 15A.082" appears in statutes, replace that term with "by the council."
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 15A.082, new text end new text begin is repealed.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective upon approval of the constitutional amendment proposed in
article 1.
new text end