4th Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to employment; establishing and modifying 1.3 certain salary limits; requiring an evaluation of 1.4 agency head responsibilities; amending Minnesota 1.5 Statutes 1994, sections 3.855, subdivision 3; 15A.081, 1.6 subdivision 8; 15A.083, subdivisions 5, 6a, and 7; 1.7 43A.17, subdivisions 1, 3, and by adding a 1.8 subdivision; 43A.18, subdivision 4; 85A.02, 1.9 subdivision 5a; and 298.22, subdivision 1; proposing 1.10 coding for new law in Minnesota Statutes, chapter 15A; 1.11 repealing Minnesota Statutes 1994, sections 15A.081, 1.12 subdivisions 1, 7, and 7b; and 43A.18, subdivision 5. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 1994, section 3.855, 1.15 subdivision 3, is amended to read: 1.16 Subd. 3. [OTHER SALARIES AND COMPENSATION PLANS.] The 1.17 commission shall also: 1.18 (a) review and approve, reject, or modify recommendations 1.19 of the commissioner of employee relations for increasing salary 1.20 rates under section 43A.17, subdivision 3a; 1.21 (b) review and approve, reject, or modify a plan for 1.22 compensation, terms and conditions of employment prepared and 1.23 submitted by the commissioner of employee relations under 1.24 section 43A.18, subdivision 2, covering all state employees who 1.25 are not represented by an exclusive bargaining representative 1.26 and whose compensation is not provided for by chapter 43A or 1.27 other law; 1.28(b)(c) review and approve, reject or modify a plan for 1.29 total compensation and terms and conditions of employment for 2.1 employees in positions identified as being managerial under 2.2 section 43A.18, subdivision 3, whose salaries and benefits are 2.3 not otherwise provided for in law or other plans established 2.4 under chapter 43A; and 2.5(c) review and approve, reject or modify recommendations2.6for salaries submitted by the governor under section 43A.18,2.7subdivision 5, covering agency head positions listed in section2.815A.081;2.9(d) review and approve, reject, or modify recommendations2.10for salaries of officials of higher education systems under2.11section 15A.081, subdivision 7b; and2.12(e)(d) review and approve, reject, or modify plans for 2.13 compensation, terms, and conditions of employment proposed under 2.14 section 43A.18, subdivision 4. 2.15 Sec. 2. Minnesota Statutes 1994, section 15A.081, 2.16 subdivision 8, is amended to read: 2.17 Subd. 8. [EXPENSE ALLOWANCE.] Notwithstanding any law to 2.18 the contrary, positions listed insubdivision 1section 2.19 15A.0815, subdivisions 3 and 4, and constitutional officers, and2.20the commissioner of iron range resources and rehabilitationare 2.21 authorized an annual expense allowance not to exceed $1,500 for 2.22 necessary expenses in the normal performance of their duties for 2.23 which no other reimbursement is provided. The expenditures 2.24 under this subdivision are subject to any laws and rules 2.25 relating to budgeting, allotment and encumbrance, preaudit and 2.26 postaudit. The commissioner of finance maypromulgateadopt 2.27 rules to assure the proper expenditure of these funds,and to 2.28 provide for reimbursement. 2.29 Sec. 3. [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 2.30 Subdivision 1. [SALARY LIMITS.] For purposes of 2.31 subdivisions 2 to 4, the governor's salary is as established 2.32 under section 15A.082. 2.33 The appointing authority, as defined in section 43A.02, 2.34 subdivision 5, shall establish salaries for the positions within 2.35 the prescribed limits as specified in subdivisions 2 to 5. In 2.36 establishing individual salaries, the appointing authority shall 3.1 consider the criteria established in section 43A.18, subdivision 3.2 8, and the performance of individual incumbents. The 3.3 performance evaluation must include a review of an incumbent's 3.4 progress toward attainment of affirmative action goals. If the 3.5 appointing authority is not the governor, the salary proposed by 3.6 the appointing authority is not effective unless approved by the 3.7 commissioner of employee relations. 3.8 The appointing authority shall set the initial salary of a 3.9 head of a new agency or a chair of a new metropolitan board or 3.10 commission whose salary is not specifically prescribed by law. 3.11 If the appointing authority is not the governor, the salary 3.12 proposed by the appointing authority is not effective unless 3.13 approved by the commissioner of employee relations. The amount 3.14 of the new salary must be comparable to the salary of an agency 3.15 head or commission chair having similar duties and 3.16 responsibilities. 3.17 Subd. 2. [HIGHER EDUCATION SYSTEM LIMITS.] The salary of 3.18 the chancellor of Minnesota state colleges and universities may 3.19 not exceed 95 percent of the salary of the governor. For 3.20 purposes of this subdivision, "salary" does not include: 3.21 (1) employee benefits that are also provided for the 3.22 majority of all other full-time state employees, vacation and 3.23 sick leave allowances, health and dental insurance, disability 3.24 insurance, term life insurance, and pension benefits or like 3.25 benefits the cost of which is borne by the employee or which is 3.26 not subject to tax as income under the Internal Revenue Code of 3.27 1986; 3.28 (2) dues paid to organizations that are of a civic, 3.29 professional, educational, or governmental nature; 3.30 (3) reimbursement for actual expenses incurred by the 3.31 employee that the appointing authority determines to be directly 3.32 related to the performance of job responsibilities, including 3.33 any relocation expenses paid during the initial year of 3.34 employment; or 3.35 (4) a housing allowance that is comparable to housing 3.36 allowances provided to chancellors and university presidents in 4.1 similar higher education systems nationwide. 4.2 Subd. 3. [GROUP I SALARY LIMITS.] The salaries for 4.3 positions in this subdivision may not exceed 85 percent of the 4.4 salary of the governor: 4.5 Commissioner of administration; 4.6 Commissioner of agriculture; 4.7 Commissioner of commerce; 4.8 Commissioner of corrections; 4.9 Commissioner of economic security; 4.10 Commissioner of education; 4.11 Commissioner of employee relations; 4.12 Commissioner of finance; 4.13 Commissioner of health; 4.14 Executive director, higher education coordinating board; 4.15 Commissioner, housing finance agency; 4.16 Commissioner of human rights; 4.17 Commissioner of human services; 4.18 Executive director, state board of investment; 4.19 Commissioner of labor and industry; 4.20 Commissioner of natural resources; 4.21 Commissioner of office of strategic and long-range 4.22 planning; 4.23 Commissioner, pollution control agency; 4.24 Commissioner of public safety; 4.25 Commissioner, department of public service; 4.26 Commissioner of revenue; 4.27 Commissioner of trade and economic development; 4.28 Commissioner of transportation; 4.29 Commissioner of veterans affairs; 4.30 Administrator of zoological gardens. 4.31 Subd. 4. [GROUP II SALARY LIMITS.] The salaries for 4.32 positions in this subdivision may not exceed 75 percent of the 4.33 salary of the governor: 4.34 Ombudsman for corrections; 4.35 Director of office of environmental assistance; 4.36 Executive director of gambling control board; 5.1 Commissioner of iron range resources and rehabilitation 5.2 board; 5.3 Commissioner, bureau of mediation services; 5.4 Ombudsman for mental health and retardation; 5.5 Executive director of pari-mutuel racing; 5.6 Executive director, public employees retirement 5.7 association; 5.8 Commissioner, public utilities commission; 5.9 Executive director, state retirement system; 5.10 Executive director, teacher's retirement association. 5.11 Subd. 5. [GROUP III SALARY LIMITS.] The salary for a 5.12 position in this subdivision may not exceed 25 percent of the 5.13 salary of the governor: 5.14 Chair, metropolitan airports commission. 5.15 Sec. 4. Minnesota Statutes 1994, section 15A.083, 5.16 subdivision 5, is amended to read: 5.17 Subd. 5. [TAX COURT.]SalariesThe salary ofjudgesa 5.18 judge of the tax courtareis the same as thebasesalary for 5.19 a districtjudgescourt judge as set under section 15A.082,5.20subdivision 3. 5.21 Sec. 5. Minnesota Statutes 1994, section 15A.083, 5.22 subdivision 6a, is amended to read: 5.23 Subd. 6a. [ADMINISTRATIVE LAW JUDGE;MAXIMUM SALARY5.24 SALARIES.] Themaximumsalary of an administrative law judge in 5.25 the classified service employed by the office of administrative 5.26 hearings is 90 percent of the salary of a district courtjudges5.27 judge as set under section 15A.082, subdivision 3. The salary 5.28 of the chief administrative law judge is the same as the salary 5.29 of a district court judge as set under section 15A.082. The 5.30 salaries of the assistant chief administrative law judge and the 5.31 administrative law judge supervisor are 95 percent of the salary 5.32 of a district court judge as set under section 15A.082. 5.33 Sec. 6. Minnesota Statutes 1994, section 15A.083, 5.34 subdivision 7, is amended to read: 5.35 Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND 5.36 COMPENSATION JUDGES.]SalariesThe salary ofjudgesa judge of 6.1 the workers' compensation court of appealsareis the same as 6.2 the salary for a districtjudgescourt judge as set under 6.3 section 15A.082, subdivision 3.SalariesThe salary of a 6.4 compensationjudges are 75judge is 90 percent of the salary 6.5 of a district courtjudgesjudge. The chief workers' 6.6 compensation settlement judge at the department of labor and 6.7 industry may be paid an annual salary that is up to five percent 6.8 greater than the salary of a workers' compensation settlement 6.9judgesjudge at the department of labor and industry. 6.10 Sec. 7. Minnesota Statutes 1994, section 43A.17, 6.11 subdivision 1, is amended to read: 6.12 Subdivision 1. [SALARY LIMITS.] As used in subdivisions 1 6.13 to 9, "salary" means hourly, monthly, or annual rate of pay 6.14 including any lump-sum payments and cost-of-living adjustment 6.15 increases but excluding payments due to overtime worked, shift 6.16 or equipment differentials, work out of class as required by 6.17 collective bargaining agreements or plans established under 6.18 section 43A.18, and back pay on reallocation or other payments 6.19 related to the hours or conditions under which work is performed 6.20 rather than to the salary range or rate to which a class is 6.21 assigned. For presidents of state universities, "salary" does 6.22 not include a housing allowance provided through a compensation 6.23 plan approved under section 43A.18, subdivision 3a. 6.24 The salary, as established in section15A.08115A.0815, of 6.25 the head of a state agency in the executive branch is the upper 6.26 limitof compensationon the salaries of individual employees in 6.27 the agency. The salary of the commissioner of labor and 6.28 industry is the upper limit ofcompensationsalaries of 6.29 employees in the bureau of mediation services. However, if an 6.30 agency head is assigned a salary that is lower than the current 6.31 salary of another agency employee, the employee retains the 6.32 salary, but may not receive an increase in salary as long as the 6.33 salary is above that of the agency head. The commissioner may 6.34 grant exemptions from these upper limits as provided in 6.35 subdivisions33a and 4. 6.36 Sec. 8. Minnesota Statutes 1994, section 43A.17, 7.1 subdivision 3, is amended to read: 7.2 Subd. 3. [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 7.3 of the appointing authority, and when the commissioner 7.4 determines that changes in employment situations create 7.5 difficulties in attracting or retaining employees, the 7.6 commissioner may approve an unusual employment situation 7.7 increase to advance an employee within the compensation plan. 7.8 Such action will be consistent with applicable provisions of 7.9 collective bargaining agreements or plans pursuant to section 7.10 43A.18. The commissioner shall review each proposal giving due 7.11 consideration to salary rates paid to other employees in the 7.12 same class and agency and may approve any request which in the 7.13 commissioner's judgment is in the best interest of the 7.14 state.If the commissioner determines that the position7.15requires special expertise necessitating a higher salary to7.16attract or retain qualified persons, the commissioner may grant7.17an exemption not to exceed 120 percent of the base salary of the7.18head of the agency.7.19 Sec. 9. Minnesota Statutes 1994, section 43A.17, is 7.20 amended by adding a subdivision to read: 7.21 Subd. 3a. [SALARY LIMIT WAIVERS.] The commissioner may 7.22 increase the limitation for a position that the commissioner has 7.23 determined requires special expertise necessitating a higher 7.24 salary to attract or retain a qualified person. The 7.25 commissioner shall review each proposed increase giving due 7.26 consideration to salary rates paid to other persons with similar 7.27 responsibilities in the state and nation. The commissioner may 7.28 not increase the limitation until the increase has been approved 7.29 by the legislative commission on employee relations under 7.30 section 3.855, subdivisions 2 and 3. 7.31 Sec. 10. Minnesota Statutes 1994, section 43A.18, 7.32 subdivision 4, is amended to read: 7.33 Subd. 4. [PLANS NOT ESTABLISHED BUT APPROVED BY 7.34 COMMISSIONER.] (a) Notwithstanding any other law to the 7.35 contrary, terms and conditions of employment for employees 7.36 listed in this subdivision must be set by appointing authorities 8.1 within the limits of compensation plans that have been approved 8.2 by the commissioner before becoming effective. Compensation 8.3 plans established under paragraphs (c) and (d), must be reviewed 8.4 and approved, modified, or rejected by the legislature and the 8.5 legislative commission on employee relations under section 8.6 3.855, subdivision 2, before becoming effective. 8.7 (b) Total compensation for employees who are not covered by 8.8 a collective bargaining agreement in the offices of the 8.9 governor, lieutenant governor, attorney general, secretary of 8.10 state, state auditor, and state treasurer must be determined by 8.11 the governor, lieutenant governor, attorney general, secretary 8.12 of state, state auditor, and state treasurer, respectively. 8.13 (c)Total compensation for classified administrative law8.14judges in the office of administrative hearings must be8.15determined by the chief administrative law judge.8.16(d)Total compensation for unclassified positions not 8.17 covered by a collective bargaining agreement in the higher 8.18 education coordinating board must be determined by the higher 8.19 education coordinating board. 8.20 Sec. 11. Minnesota Statutes 1994, section 85A.02, 8.21 subdivision 5a, is amended to read: 8.22 Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an 8.23 administrator who shall serve as the executive secretary and 8.24 principal administrative officer of the board and, subject to 8.25 its approval,the administratorshall operate the Minnesota 8.26 zoological garden and enforce all rules and policy decisions of 8.27 the board. The administrator must be chosen solely on the basis 8.28 of training, experience, and other qualifications appropriate to 8.29 the field of zoo management and development.The board shall8.30set the compensation for the administrator within the limits8.31established for the commissioner of agriculture in section8.3215A.081, subdivision 1.The administrator shall perform duties 8.33 assigned by the board andshall serveserves in the unclassified 8.34 service at the pleasure of the board. The administrator, with 8.35 the participation of the board, shall appoint a development 8.36 director in the unclassified service or contract with a 9.1 development consultant to establish mechanisms to foster 9.2 community participation in and community support for the 9.3 Minnesota zoological garden. The board may employ other 9.4 necessary professional, technical, and clerical personnel. 9.5 Employees of the zoological garden are eligible for salary 9.6 supplement in the same manner as employees of other state 9.7 agencies. The commissioner of finance shall determine the 9.8 amount of salary supplement based on available funds. 9.9 (b) The board may contract with individuals to perform 9.10 professional services and may contract for the purchases of 9.11 necessary species exhibits, supplies, services, and equipment. 9.12 The board may also contract for the construction and operation 9.13 of entertainment facilities on the zoo grounds that are not 9.14 directly connected to ordinary functions of the zoological 9.15 garden. The zoo boardshallmay not enter intoanya final 9.16 agreement for construction ofanyan entertainment facility that 9.17 is not directly connected to the ordinary functions of the zoo 9.18 until after final construction plans have been submitted to the 9.19 chairs of the senate finance and house appropriations committees 9.20 for their recommendations. 9.21 The zoo may not contract for entertainment during the 9.22 period of the Minnesota state fair that would directly compete 9.23 with entertainment at the Minnesota state fair. 9.24 Sec. 12. Minnesota Statutes 1994, section 298.22, 9.25 subdivision 1, is amended to read: 9.26 Subdivision 1. (1) Theoffice ofgovernor shall appoint 9.27 the commissioner of iron range resources and rehabilitationis9.28created. The commissioner shall be appointed by the governor9.29 underthe provisions ofsection 15.06. 9.30 (2) The commissioner may holdsuchother positions or 9.31 appointmentsasthat are not incompatible with duties as 9.32 commissioner of iron range resources and rehabilitation. The 9.33 commissioner may appoint a deputy commissioner. All expenses of 9.34 the commissioner, including the payment of such assistance as 9.35 may be necessary,shallmust be paid out of the amounts 9.36 appropriated by section 298.28.The compensation of the10.1commissioner shall be set by the legislative coordinating10.2commission and may not exceed the maximum salary set for the10.3commissioner of administration under section 15A.081,10.4subdivision 1.10.5 (3) When the commissionershall determinedetermines that 10.6 distress and unemployment exists or may exist in the future in 10.7 any county by reason of the removal of natural resources or a 10.8 possibly limited usethereofof natural resources in the future 10.9 andtheany resulting decrease in employmentresulting10.10therefrom, now or hereafter, the commissioner may usesuch10.11 whatever amounts of the appropriation made to the commissioner 10.12 of revenue in section 298.28asthat are determined to be 10.13 necessary and proper in the development of the remaining 10.14 resources ofsaidthe county and in the vocational training and 10.15 rehabilitation of its residents, except that the amount needed 10.16 to cover cost overruns awarded to a contractor by an arbitrator 10.17 in relation to a contract awarded by the commissioner or in 10.18 effect after July 1, 1985, is appropriated from the general 10.19 fund. For the purposes of this section, "development of 10.20 remaining resources" includes, but is not limited to, the 10.21 promotion of tourism. 10.22 Sec. 13. [EVALUATION.] 10.23 The commissioner of employee relations shall complete an 10.24 evaluation of the relative responsibilities of the heads of 10.25 state agencies and report to the president of the senate and the 10.26 speaker of the house of representatives by January 1, 1997. 10.27 Sec. 14. [COMPENSATION COUNCIL RECOMMENDATIONS.] 10.28 (a) The salaries of constitutional officers, judges, and 10.29 legislators are increased on January 6, 1997, by the lesser of: 10.30 (1) the April 1, 1995, recommendation of the compensation 10.31 council to take effect in 1997; or 10.32 (2) the average of the across-the-board increases for the 10.33 fiscal year ending June 30, 1996, included in collective 10.34 bargaining agreements and arbitration awards that have been 10.35 ratified by the legislature in 1996. On July 1, 1996, the 10.36 commissioner of employee relations shall calculate and report to 11.1 the committee on finance of the senate and the ways and means 11.2 committee of the house of representatives the average 11.3 across-the-board increases that have been ratified by the 11.4 legislature in 1996. The across-the-board increases must be 11.5 weighted by the number of full-time-equivalent employees covered 11.6 by the contract or arbitration award for the fiscal year ending 11.7 June 30, 1996. This calculation must be used to determine the 11.8 increases provided in this paragraph. 11.9 (b) The salaries of constitutional officers, judges, and 11.10 legislators are increased on January 1, 1998, by the lesser of: 11.11 (1) the April 1, 1995, recommendation of the compensation 11.12 council to take effect in 1998; or 11.13 (2) the average of the across-the-board increases for the 11.14 fiscal year ending June 30, 1997, included in collective 11.15 bargaining agreements and arbitration awards that have been 11.16 ratified by the legislature in 1996. On July 1, 1996, the 11.17 commissioner of employee relations shall calculate and report to 11.18 the committee on finance of the senate and the ways and means 11.19 committee of the house of representatives the average 11.20 across-the-board increases that have been ratified by the 11.21 legislature in 1996. The across-the-board increases must be 11.22 weighted by the number of full-time-equivalent employees covered 11.23 by the contract or arbitration award for the fiscal year ending 11.24 June 30, 1996. This calculation must be used to determine the 11.25 increases provided in this paragraph. 11.26 Sec. 15. [PHASE-IN OF SALARY INCREASES.] 11.27 (a) Notwithstanding Minnesota Statutes, section 15A.083, 11.28 subdivision 6a, the salary of an administrative law judge in the 11.29 classified service employed by the office of administrative 11.30 hearings is 80 percent of the salary of a district court judge 11.31 as set under Minnesota Statutes, section 15A.082, effective July 11.32 1, 1995, and 85 percent of that salary effective July 1, 1996. 11.33 After June 30, 1997, the salary of an administrative law judge 11.34 in the classified service employed by the office of 11.35 administrative hearings is governed by Minnesota Statutes, 11.36 section 15A.083, subdivision 6a. 12.1 (b) Notwithstanding Minnesota Statutes, section 15A.083, 12.2 subdivision 6a, the salary of the assistant chief administrative 12.3 law judge and the administrative law judge supervisor in the 12.4 office of administrative hearings is 85 percent of the salary of 12.5 a district court judge as set under Minnesota Statutes, section 12.6 15A.082, effective July 1, 1995, and 90 percent of that salary 12.7 effective July 1, 1996. After June 30, 1997, the salary of the 12.8 assistant chief administrative law judge and the administrative 12.9 law judge supervisor is governed by Minnesota Statutes, section 12.10 15A.083, subdivision 6a. 12.11 (c) Notwithstanding Minnesota Statutes, section 15A.083, 12.12 subdivision 7, the salary of a compensation judge is 80 percent 12.13 of the salary of a district court judge as set under Minnesota 12.14 Statutes, section 15A.082, effective July 1, 1995, and 85 12.15 percent of that salary effective July 1, 1996. After June 30, 12.16 1997, the salary of a compensation judge is governed by 12.17 Minnesota Statutes, section 15A.083, subdivision 7. 12.18 Sec. 16. [REVISOR INSTRUCTION.] 12.19 The revisor of statutes shall substitute the reference 12.20 "section 15A.0815" for each reference to sections 15A.081, 12.21 subdivisions 1, 7, and 7b, and 43A.18, subdivision 5, wherever 12.22 they occur in the next edition of Minnesota Statutes and 12.23 Minnesota Rules. 12.24 Sec. 17. [REPEALER.] 12.25 Minnesota Statutes 1994, sections 15A.081, subdivisions 1, 12.26 7, and 7b; and 43A.18, subdivision 5, are repealed. 12.27 Sec. 18. [EFFECTIVE DATE.] 12.28 This act is effective July 1, 1995.