SF 1838

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:23am

A bill for an act
relating to state government; modifying public employee annual salaries that
exceed $100,000 during the biennium ending June 30, 2011.

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

Section 1. new text begin LIMIT ON PUBLIC EMPLOYEE SALARY.
new text end

new text begin Subdivision 1. new text end

new text begin Salary reduction for certain public employees. new text end

new text begin (a) During
the biennium beginning July 1, 2009, and ending June 30, 2011, an employee of a
government employer described in paragraph (b) who receives a salary with an annual
rate of more than $100,000 shall have that salary reduced by up to 15 percent using the
method described in paragraph (c). For purposes of this section, "employee" includes an
elected official. This section does not prohibit a school district or charter school from
implementing an alternative compensation program approved by the commissioner of
education. The commissioner may approve an alternative compensation program at the
commissioner's sole discretion.
new text end

new text begin (b) For purposes of this section, "government employer" means:
new text end

new text begin (1) the state and all statewide, regional, or local government bodies including, but
not limited to, all state departments, boards, agencies, offices, bureaus, commissions,
authorities, councils, task forces, and state constitutional offices;
new text end

new text begin (2) Minnesota State Colleges and Universities;
new text end

new text begin (3) offices in the executive, legislative, or judicial branches of the state;
new text end

new text begin (4) all regional boards, regional commissions, and regional councils;
new text end

new text begin (5) all counties;
new text end

new text begin (6) all statutory or home rule charter cities, towns, and townships, and other
governmental bodies covered under Minnesota Statutes, chapter 179A; and
new text end

new text begin (7) all school districts and charter schools.
new text end

new text begin (c) The method for reducing a salary under this section is as follows:
new text end

new text begin (1) Any annual salary that exceeds $100,000 but is less than or equal to $110,000
shall be reduced by 50 percent of the amount that exceeds $100,000. The maximum salary
reduction under this clause shall be $5,000.
new text end

new text begin (2) Any annual salary that exceeds $110,000 but is less than or equal to $120,000
shall be reduced by $5,000 plus 55 percent of the amount that exceeds $110,000. The
maximum salary reduction under this clause shall be $10,500.
new text end

new text begin (3) Any annual salary that exceeds $120,000 but is less than or equal to $130,000
shall be reduced by $10,500 plus 60 percent of the amount that exceeds $120,000. The
maximum salary reduction under this clause shall be $16,000.
new text end

new text begin (4) Any annual salary that exceeds $130,000 but is less than or equal to $136,000
shall be reduced by $16,000 plus 65 percent of the amount that exceeds $130,000. The
maximum salary reduction under this clause shall be $20,400.
new text end

new text begin (5) Any annual salary that exceeds $136,000 shall be reduced by 15 percent.
new text end

new text begin (d) Any employee of a government employer described in paragraph (b) who
becomes subject to or remains subject to paragraph (a) after the effective date of this
section, whether by promotion, transfer, election, beginning work as a newly hired
employee, or by any other means, must receive a salary with an annual rate for the
position that is consistent with the salary reduction requirements of this section and
commensurate with similarly situated employees who have had their salaries reduced
pursuant to this section.
new text end

new text begin Subd. 2. new text end

new text begin Contracts in effect. new text end

new text begin (a) This section does not apply to an employee if
an annual salary exceeding $100,000 is required by a contract or collective bargaining
agreement in effect before the effective date of this section. However, from the effective
date of this section until June 30, 2011, for all contracts or collective bargaining
agreements requiring an annual salary exceeding $100,000, an employer may not:
new text end

new text begin (1) enter into a new contract or collective bargaining agreement that provides
for an annual salary that exceeds the amount calculated by reducing the salary of the
preceding contract or collective bargaining agreement pursuant to the method described in
subdivision 1, paragraph (c); or
new text end

new text begin (2) renew or otherwise extend in any manner that portion of a contract, collective
bargaining agreement, or other arrangement that provides an annual salary of more than
$100,000 without reducing the salary provision of that contract, collective bargaining
agreement, or other arrangement pursuant to the method described in subdivision 1,
paragraph (c).
new text end

new text begin (b) Notwithstanding any law to the contrary, if, as of the effective date of this
section, a government employer has agreed to or entered into a contract or collective
bargaining agreement that is not scheduled to become effective until after the effective
date of this section, any provision of the contract or collective bargaining agreement that
violates subdivision 1, paragraph (a), is void. If this occurs, the exclusive representative
may rescind the entire contract or collective bargaining agreement. To be effective, a
request to rescind the contract or collective bargaining agreement must be made within
30 calendar days following the effective date of this section. Any subsequent contract or
collective bargaining agreement must comply with the terms of this section.
new text end

new text begin Subd. 3. new text end

new text begin Future contracts. new text end

new text begin A contract, collective bargaining agreement, or
compensation plan entered into after June 30, 2011, must not provide a retroactive salary
or wage increase that applies to a period before June 30, 2011, if that increase would not
comply with this section if granted before June 30, 2011.
new text end

new text begin Subd. 4. new text end

new text begin Arbitration and strikes. new text end

new text begin Notwithstanding any law to the contrary:
new text end

new text begin (1) employees of a government employer may not legally strike due to a government
employer's reduction of a salary if the reduction is required to comply with this section; and
new text end

new text begin (2) neither a government employer nor an exclusive representative may request
interest arbitration in relation to a reduction in the rate of salary that is required by this
section and an arbitrator may not issue an award that would increase or restore salary in a
manner prohibited by this section.
new text end

new text begin Subd. 5. new text end

new text begin Relation to other law. new text end

new text begin This section supersedes Minnesota Statutes,
chapter 179A, and any other law to the contrary. It is not an unfair labor practice under
Minnesota Statutes, chapter 179A, for a public employer to take any action required to
comply with this section.
new text end

Sec. 2. new text begin UNIVERSITY OF MINNESOTA; SALARY REDUCTION.
new text end

new text begin As a condition of all appropriations during the biennium, the University of
Minnesota must comply with section 1 as if it were defined as a government employer
under that section.
new text end

Sec. 3. new text begin EFFECTIVE DATE; EXPIRATION.
new text end

new text begin Sections 1 and 2 are effective July 1, 2009, and expire on June 30, 2011.
new text end