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SF 603

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 05/17/2017 08:36am

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



Version List Authors and Status

Current Version - 2nd Engrossment

A bill for an act
relating to public employment; directing MN.IT to provide services to additional
agencies; clarifying limits on severance pay to highly compensated public
employees; amending Minnesota Statutes 2016, sections 16E.016; 43A.17,
subdivision 11.


Section 1.

Minnesota Statutes 2016, section 16E.016, is amended to read:


(a) The chief information officer is responsible for providing or entering into managed
services contracts for the provision, improvement, and development of the following
information technology systems and services to state agencies:

(1) state data centers;

(2) mainframes including system software;

(3) servers including system software;

(4) desktops including system software;

(5) laptop computers including system software;

(6) a data network including system software;

(7) database, electronic mail, office systems, reporting, and other standard software

(8) business application software and related technical support services;

(9) help desk for the components listed in clauses (1) to (8);

(10) maintenance, problem resolution, and break-fix for the components listed in clauses
(1) to (8);

(11) regular upgrades and replacement for the components listed in clauses (1) to (8);

(12) network-connected output devices.

(b) All state agency employees whose work primarily involves functions specified in
paragraph (a) are employees of the Office of MN.IT Services. This includes employees who
directly perform the functions in paragraph (a), as well as employees whose work primarily
involves managing, supervising, or providing administrative services or support services
to employees who directly perform these functions. The chief information officer may assign
employees of the office to perform work exclusively for another state agency.

(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a
state agency to obtain services specified in paragraph (a) through a contract with an outside
vendor when the chief information officer and the agency head agree that a contract would
provide best value, as defined in section 16C.02, under the service-level agreement. The
chief information officer must require that agency contracts with outside vendors ensure
that systems and services are compatible with standards established by the Office of MN.IT

(d) The Minnesota State Retirement System, the Public Employees Retirement
Association, the Teachers Retirement Association, the State Board of Investment, the
Campaign Finance and Public Disclosure Board,
and the State Lottery, and the Statewide
Radio Board
are not state agencies for purposes of this section.

(e) Effective upon certification by the chief information officer that the information
technology systems and services provided under this section meet all professional and
technical standards necessary for the entity to perform its functions, the following are state
agencies for purposes of this section: the Campaign Finance and Public Disclosure Board,
the State Lottery, and the Statewide Radio Board.

Sec. 2.

Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:

Subd. 11.

Severance pay for certain employees.

(a) For purposes of this subdivision,
"highly compensated employee" means an employee of the state whose estimated annual
compensation is greater than 60 percent of the governor's annual salary, and who is not
covered by a collective bargaining agreement negotiated under chapter 179A or a
compensation plan authorized under section 43A.18, subdivision 3a

(b) Severance pay for a highly compensated employee includes benefits or compensation
with a quantifiable monetary value, that are provided for an employee upon termination of
employment and are not part of the employee's annual wages and benefits and are not
specifically excluded by this subdivision. Severance pay does not include payments for
accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to
cover the cost of group term insurance. Severance pay for a highly compensated employee
does not include payments of periodic contributions by an employer toward premiums for
group insurance policies. The severance pay for a highly compensated employee must be
excluded from retirement deductions and from any calculations of retirement benefits.
Severance pay for a highly compensated employee must be paid in a manner mutually
agreeable to the employee and the employee's appointing authority over a period not to
exceed five years from retirement or termination of employment. If a retired or terminated
employee dies before all or a portion of the severance pay has been disbursed, the balance
due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
as provided in paragraph (c), severance pay provided for a highly compensated employee
leaving employment may not exceed an amount equivalent to six months of pay the lesser

(1) six months pay; or

(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of
the highly compensated employee's accumulated but unused sick leave hours

(c) Severance pay for a highly compensated employee may exceed an amount equivalent
to six months of pay
the limit prescribed in paragraph (b) if the severance pay is part of an
early retirement incentive offer approved by the state and the same early retirement incentive
offer is also made available to all other employees of the appointing authority who meet
generally defined criteria relative to age or length of service.

(d) An appointing authority may make severance payments to a highly compensated
employee, up to the limits prescribed in this subdivision, only if doing so is authorized by
a compensation plan under section 43A.18 that governs the employee, provided that the
following highly compensated employees are not eligible for severance pay:

(1) a commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, including the state chief information
officer; and

(2) any unclassified employee who is also a public official, as defined in section 10A.01,
subdivision 35.

(e) Severance pay shall not be paid to a highly compensated employee who has been
employed by the appointing authority for less than six months or who voluntarily terminates


This section is effective the day following final enactment.

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