SF 1534

as introduced - 88th Legislature (2013 - 2014) Posted on 05/29/2013 11:06am

A bill for an act
relating to state government; implementing recommendations of the
Compensation Council; modifying certain salary provisions; requiring a
compensation study; providing for legislative, judicial, and constitutional
officers' salaries; appropriating money; amending Minnesota Statutes 2012,
sections 3.099, subdivision 1; 3.855, subdivision 3; 15A.0815, subdivisions 1,
2, 3, 5; 43A.17, subdivisions 1, 3; repealing Minnesota Statutes 2012, section
43A.17, subdivision 4.

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

Section 1.

Minnesota Statutes 2012, section 3.099, subdivision 1, is amended to read:

Subdivision 1.

new text begin Salary; new text end paydays; mileage; per diem.

new text begin (a) The salary of each member
of the legislature is equal to 33 percent of the salary authorized for the governor. An increase
in the legislators' salaries resulting from an increase in the salary of the governor takes
effect at the first time authorized under the Minnesota Constitution, article IV, section 9.
new text end

new text begin (b) new text end The compensation of each member of the legislature is due on the first day of the
regular legislative session of the term and payable in equal parts on January 15, in the first
month of each term and on the first day of each following month during the term for which
the member was elected. The compensation of each member of the legislature elected
at a special election is due on the day the member takes the oath of office and payable
within ten days of taking the oath for the remaining part of the month in which the oath
was taken, and then in equal parts on the first day of each following month during the
term for which the member was elected.

new text begin (c) new text end Each member shall receive mileage for necessary travel to the place of meeting
and returning to the member's residence in the amount and for trips as authorized by the
senate for senate members and by the house of representatives for house members.

new text begin (d) new text end Each member shall also receive per diem living expenses during a regular or
special session of the legislature in the amounts and for the purposes as determined by the
senate for senate members and by the house of representatives for house members.

new text begin (e) new text end On January 15 in the first month of each term and on the first day of each following
month, the secretary of the senate and the chief clerk of the house of representatives
shall certify to the commissioner of management and budget, in duplicate, the amount of
compensation then payable to each member of their respective houses and its total.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 5, 2015. Beginning on
January 5, 2015, the salaries of legislators are 33 percent of the salary of the governor on
January 1, 2015. Beginning January 1, 2016, the salaries of legislators are 33 percent of
the salary of the governor on January 1, 2016.
new text end

Sec. 2.

Minnesota Statutes 2012, section 3.855, subdivision 3, is amended to read:

Subd. 3.

Other salaries and compensation plans.

The commission shall also:

(1) review and approve, reject, or modify a plan for compensation and terms and
conditions of employment prepared and submitted by the commissioner of management
and budget under section 43A.18, subdivision 2, covering all state employees who are
not represented by an exclusive bargaining representative and whose compensation is not
provided for by chapter 43A or other law;

(2) review and approve, reject, or modify a plan for total compensation and terms
and conditions of employment for employees in positions identified as being managerial
under section 43A.18, subdivision 3, whose salaries and benefits are not otherwise
provided for in law or other plans established under chapter 43A;

(3) review and approve, reject, or modify recommendations for salaries submitted
by deleted text begin the governor or other deleted text end new text begin an new text end appointing authority new text begin other than the governor new text end under section
15A.0815, subdivision 5, covering agency head positions listed in section 15A.0815;

deleted text begin (4) review and approve, reject, or modify recommendations for salaries of officials
of higher education systems under section 15A.081, subdivisions 7b and 7c;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end review and approve, reject, or modify plans for compensation, terms, and
conditions of employment proposed under section 43A.18, subdivisions 3a new text begin , 3b, new text end and 4; and

deleted text begin (6) deleted text end new text begin (5) new text end review and approve, reject, or modify the plan for compensation, terms, and
conditions of employment of classified employees in the office of the legislative auditor
under section 3.971, subdivision 2.

Sec. 3.

Minnesota Statutes 2012, section 15A.0815, subdivision 1, is amended to read:

Subdivision 1.

Salary limits.

The governor or other appropriate appointing
authority shall set the salary rates for positions listed in this section within the salary limits
listed in subdivisions 2 to 4 deleted text begin , deleted text end new text begin . If the appointing authority is not the governor, the appointing
authority's action is new text end subject to approval of the Legislative Coordinating Commission and the
legislature as provided by subdivision 5 and sections 3.855 and 15A.081, subdivision 7b.

Sec. 4.

Minnesota Statutes 2012, section 15A.0815, subdivision 2, is amended to read:

Subd. 2.

Group I salary limits.

deleted text begin The salaries for positions in this subdivision may
not exceed 95 percent of the salary of the governor: deleted text end new text begin The salary for a position listed in this
subdivision shall not exceed 133 percent of the salary of the governor. This limit must
be adjusted annually on January 1. The new 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.
The commissioner of management and budget must publish the limit on the department's
Web site. This subdivision applies to the following positions:
new text end

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of health;

Executive director, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of management and budget;

Commissioner of natural resources;

Director of Office of Strategic and Long-Range Planning;

Commissioner, Pollution Control Agency;

Executive director, Public Employees Retirement Association;

Commissioner of public safety;

Commissioner of revenue;

Executive director, State Retirement System;

Executive director, Teachers Retirement Association;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Sec. 5.

Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to read:

Subd. 3.

Group II salary limits.

deleted text begin The salaries for positions in this subdivision may
not exceed 85 percent of the salary of the governor. deleted text end new text begin The salary for a position listed in this
subdivision shall not exceed 120 percent of the salary of the governor. This limit must
be adjusted annually on January 1. The new 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.
The commissioner of management and budget must publish the limit on the department's
Web site. This subdivision applies to the following positions:
new text end

Executive director of Gambling Control Board;

Commissioner, Iron Range Resources and Rehabilitation Board;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Sec. 6.

Minnesota Statutes 2012, section 15A.0815, subdivision 5, is amended to read:

Subd. 5.

Appointing authorities to recommend certain salaries.

(a) new text begin When
the governor is the appointing authority, new text end the governor deleted text begin , or other appropriate appointing
authority, may submit to the Legislative Coordinating Commission recommendations for
deleted text end new text begin must establish new text end salaries within the salary limits for the positions listed in subdivisions
2 to 4. deleted text begin An appointing authority may also propose additions or deletions of positions
from those listed. deleted text end new text begin Before establishing a salary, the governor must consult with the
commissioner of management and budget concerning the salary. In establishing the salary,
the governor shall consider the criteria established in section 43A.18, subdivision 8, and
the performance of individual incumbents. The performance evaluation must include a
review of an incumbent's progress toward attainment of affirmative action goals. The
governor shall establish an objective system for quantifying knowledge, abilities, duties,
responsibilities, and accountabilities, and in determining recommendations rate each
position by this system.
new text end

new text begin (b) An appointing authority other than the governor may submit to the Legislative
Coordinating Commission recommendations for salaries within the salary limits for the
positions listed in subdivisions 2 to 4.
new text end

deleted text begin (b) deleted text end Before submitting the recommendations, the appointing authority shall consult
with the commissioner of management and budget concerning the recommendations.

deleted text begin (c) deleted text end In making recommendations, the appointing authority shall consider the
criteria established in section 43A.18, subdivision 8, and the performance of individual
incumbents. The performance evaluation must include a review of an incumbent's progress
toward attainment of affirmative action goals. The appointing authority shall establish
an objective system for quantifying knowledge, abilities, duties, responsibilities, and
accountabilities, and in determining recommendations, rate each position by this system.

deleted text begin (d) deleted text end Before the appointing authority's recommended salaries take effect, the
recommendations must be reviewed and approved, rejected, or modified by the Legislative
Coordinating Commission and the legislature under section 3.855, subdivisions 2 and
3. deleted text begin If, when the legislature is not in session, the commission fails to reject or modify
salary recommendations of the governor within 30 calendar days of their receipt, the
recommendations are deemed to be approved.
deleted text end

new text begin (c) The governor or other appointing authority may propose additions or deletions of
positions from those listed in subdivisions 2 to 4.
new text end

deleted text begin (e) deleted text end new text begin (d) new text end The new text begin governor or other new text end appointing authority shall set the initial salary of a
head of a new agency or a chair of a new metropolitan board or commission whose salary
is not specifically prescribed by law after consultation with the commissioner, whose
recommendation is advisory only. The amount of the new salary must be comparable to the
salary of an agency head or commission chair having similar duties and responsibilities.

deleted text begin (f) deleted text end new text begin (e) new text end The salary of a newly appointed head of an agency or chair of a metropolitan
agency listed in subdivisions 2 to 4 new text begin who is appointed by someone other than the governor new text end ,
may be increased or decreased by the appointing authority from the salary previously
set for that position within 30 days of the new appointment after consultation with
the commissioner. If the appointing authority increases a salary under this paragraph,
the appointing authority shall submit the new salary to the Legislative Coordinating
Commission and the full legislature for approval, modification, or rejection under section
3.855, subdivisions 2 and 3. deleted text begin If, when the legislature is not in session, the commission fails
to reject or modify salary recommendations of the governor within 30 calendar days of
their receipt, the recommendations are deemed to be approved.
deleted text end

Sec. 7.

Minnesota Statutes 2012, section 43A.17, subdivision 1, is amended to read:

Subdivision 1.

Salary limits.

As used in subdivisions 1 to 9, "salary" means hourly,
monthly, or annual rate of pay including any lump-sum payments and cost-of-living
adjustment increases but excluding payments due to overtime worked, shift or equipment
differentials, work out of class as required by collective bargaining agreements or plans
established under section 43A.18, and back pay on reallocation or other payments related
to the hours or conditions under which work is performed rather than to the salary range
or rate to which a class is assigned. For presidents of state universities, "salary" does
not include a housing allowance provided through a compensation plan approved under
section 43A.18, subdivision 3a.

deleted text begin The salary, as established in section 15A.0815, of the head of a state agency in the
executive branch is the upper limit on the salaries of individual employees in the agency.
However, if an agency head is assigned a salary that is lower than the current salary of
another agency employee, the employee retains the salary, but may not receive an increase
in salary as long as the salary is above that of the agency head. The commissioner may
grant exemptions from these upper limits as provided in subdivisions 3 and 4.
deleted text end

Sec. 8.

Minnesota Statutes 2012, section 43A.17, subdivision 3, is amended to read:

Subd. 3.

Unusual employment situations.

(a) Upon the request of the appointing
authority, and when the commissioner determines that changes in employment situations
create difficulties in attracting or retaining employees, the commissioner may approve an
unusual employment situation increase to advance an employee within the deleted text begin compensation
plan deleted text end new text begin salary range new text end .

(b) deleted text begin If the commissioner determines that a position requires special expertise
necessitating a higher salary to attract or retain qualified persons, the commissioner may
grant an exemption not to exceed 120 percent of the salary of the head of the agency or the
maximum rate established for the position, whichever is less.
deleted text end

deleted text begin (c) deleted text end The following conditions apply to a request under paragraph (a) to advance an
employee within a deleted text begin compensation plan or under paragraph (b) to exceed the salary of the
agency head deleted text end new text begin salary range new text end :

(1) the appointing authority making the request must submit a detailed written
statement for each position contained in the request, specifying the changes in employment
situations that create difficulties in attracting or retaining an employee for the position;

(2) the commissioner shall review each proposal giving due consideration to salary
rates paid to other employees in the same class and agency and, if other conditions in
this paragraph are met, may approve any request that in the commissioner's judgment is
in the best interest of the state;

(3) the action must be consistent with applicable provisions of collective bargaining
agreements or plans adopted under section 43A.18;

(4) each increase or exemption must be separately documented for each employee or
position and may not be applied to groups of employees; and

(5) the commissioner shall report the granting of a request to the chair of the
Legislative Coordinating Commission within three working days.

Sec. 9. new text begin COMPENSATION STUDY.
new text end

new text begin The commissioner of management and budget must contract with an independent
consultant to conduct a comprehensive market analysis of compensation for all
unrepresented positions in the executive branch in order to better align compensation for
these positions with comparable positions in the private sector and with other relevant
public sector employers. The analysis should evaluate total compensation, including
insurance, retirement, and performance pay. $....... is appropriated to the commissioner
to conduct this analysis.
new text end

Sec. 10. new text begin JUDICIAL SALARY INCREASE.
new text end

new text begin The salaries of supreme court justices, court of appeals judges, and district court
judges are increased by four percent on July 1, 2013, by four percent on July 1, 2014, by
four percent on July 1, 2015, and by four percent on July 1, 2016. These increases may
not be implemented until the commissioner of management and budget certifies that
legislation to increase pension fund contribution rates by judges by at least one percent
is enacted into law.
new text end

Sec. 11. new text begin CONSTITUTIONAL OFFICERS SALARIES.
new text end

new text begin The salary of the governor is increased by three percent effective January 1, 2015,
and by three percent on January 1, 2016. The salaries of the other constitutional officers
shall be adjusted to retain their proportional relationship as of January 1, 2013, to the
salary of the governor.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 43A.17, subdivision 4, new text end new text begin is repealed.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 2, 3, and 5 to 12 are effective the day following final enactment. Section 4
is effective retroactively from January 1, 2013.
new text end