SF 953

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; increasing and indexing
the compensation limit for local government employees;
amending Minnesota Statutes 2004, section 43A.17,
subdivision 9; repealing Minnesota Statutes 2004,
section 356.611, subdivision 1.

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

Section 1.

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

Subd. 9.

Political subdivision compensation limit.

(a)
The salary and the value of all other forms of compensation of a
person employed by a political subdivision of this state,
excluding a school district, or employed under section 422A.03
may not exceed deleted text begin 95 deleted text end new text begin 110 new text end percent of the salary of the governor as
set under section 15A.082, except as provided in this
subdivision. For purposes of this subdivision, "political
subdivision of this state" includes a statutory or home rule
charter city, county, town, metropolitan or regional agency, or
other political subdivision, but does not include a hospital,
clinic, or health maintenance organization owned by such a
governmental unit.

(b) new text begin 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.
new text end

new text begin (c) new text end 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.

deleted text begin (c) deleted text end new text begin (d) new text end 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.

deleted text begin (d) deleted text end new text begin (e) new text end 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. new text begin 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.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 356.611, subdivision 1, is
repealed.
new text end