SF 2736

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state employees; modifying equitable compensation limits; modifying
caps on state commissioner salaries; amending Minnesota Statutes 2006, sections
15A.081, subdivision 8; 15A.0815; 43A.01, subdivision 3; 43A.17, subdivision
9; 119A.03, subdivision 1; 124D.385, subdivision 4; 349A.02, subdivision 1;
Minnesota Statutes 2007 Supplement, section 216C.052, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 15A.081, subdivision 8, is amended to
read:

Subd. 8.

Expense allowance.

Notwithstanding any law to the contrary, positions
listed in section 15A.0815, deleted text begin subdivisions 2 and 3, deleted text end constitutional officers, the commissioner
of Iron Range resources and rehabilitation, and the director of the State Lottery are
authorized an annual expense allowance not to exceed $1,500 for necessary expenses in
the normal performance of their duties for which no other reimbursement is provided.
The expenditures under this subdivision are subject to any laws and rules relating to
budgeting, allotment and encumbrance, preaudit and postaudit. The commissioner of
finance may adopt rules to assure the proper expenditure of these funds and to provide
for reimbursement.

Sec. 2.

Minnesota Statutes 2006, section 15A.0815, is amended to read:

15A.0815 SALARY LIMITS FOR CERTAIN EMPLOYEES.

Subdivision 1.

Salary limits.

The governor or other appropriate appointing
authority shall set the salary rates for positions listed in deleted text begin this section deleted text end new text begin subdivision 2 new text end within
the salary limits listed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 2 deleted text begin to 4 deleted text end new text begin and section 43A.17, subdivision
9 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.

Subd. 2.

deleted text begin Group I salary limits deleted text end new text begin Positions new text end .

deleted text begin The salaries for positions in this
subdivision may not exceed 95 percent of the salary of the governor:
deleted text end

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of employee relations;

new text begin Commissioner of employment and economic development;
new text end

Commissioner of finance;

new text begin Director, Gambling Control Board;
new text end

Commissioner of health;

Executive director, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

new text begin Commissioner, Iron Range Resources and Rehabilitation Board;
new text end

Commissioner of labor and industry;

new text begin Commissioner, Bureau of Mediation Services;
new text end

new text begin Ombudsman for Mental Health and Developmental Disabilities;
new text end

new text begin Chair, Metropolitan Airports Commission;
new text end

new text begin Chair, Metropolitan Council;
new text end

new text begin Director, Minnesota State Lottery;
new text end

Commissioner of natural resources;

deleted text begin Director of Office of Strategic and Long-Range Planning;
deleted text end

Commissioner, Pollution Control Agency;

new text begin Executive director, Public Employees Retirement Association;
new text end

Commissioner of public safety;

new text begin Commissioner, Public Utilities Commission;
new text end

new text begin Director, Minnesota Racing Commission;
new text end

Commissioner of revenue;

deleted text begin Commissioner of employment and economic development;
deleted text end

new text begin Executive director, State Retirement System;
new text end

new text begin Executive director, Teachers Retirement Association;
new text end

Commissioner of transportation; and

Commissioner of veterans affairs.

deleted text begin Subd. 3. deleted text end

deleted text begin Group II salary limits. deleted text end

deleted text begin The salaries for positions in this subdivision may
not exceed 85 percent of the salary of the governor:
deleted text end

deleted text begin Executive director of Gambling Control Board;
deleted text end

deleted text begin Commissioner, Iron Range Resources and Rehabilitation Board;
deleted text end

deleted text begin Commissioner, Bureau of Mediation Services;
deleted text end

deleted text begin Ombudsman for Mental Health and Developmental Disabilities;
deleted text end

deleted text begin Chair, Metropolitan Council;
deleted text end

deleted text begin Executive director of pari-mutuel racing;
deleted text end

deleted text begin Executive director, Public Employees Retirement Association;
deleted text end

deleted text begin Commissioner, Public Utilities Commission;
deleted text end

deleted text begin Executive director, State Retirement System; and
deleted text end

deleted text begin Executive director, Teachers Retirement Association.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Group III salary limits. deleted text end

deleted text begin The salary for a position in this subdivision may
not exceed 25 percent of the salary of the governor:
deleted text end

deleted text begin Chair, Metropolitan Airports Commission.
deleted text end

Subd. 5.

Appointing authorities to recommend certain salaries.

(a) The
governor, or other appropriate appointing authority, may submit to the Legislative
Coordinating Commission recommendations for salaries within the salary limits for the
positions listed in subdivisions 2 to 4. An appointing authority may also propose additions
or deletions of positions from those listed.

(b) Before submitting the recommendations, the appointing authority shall consult
with the commissioner of employee relations concerning the recommendations.

(c) 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.

(d) 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. 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.

(e) The 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.

(f) The salary of a newly appointed head of an agency or chair of a metropolitan
agency listed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 2 deleted text begin to 4 deleted 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.
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.

Sec. 3.

Minnesota Statutes 2006, section 43A.01, subdivision 3, is amended to read:

Subd. 3.

Equitable compensation relationships.

It is the policy of this state to
deleted text begin attempt to deleted text end establish equitable compensation relationships between female-dominated,
male-dominated, and balanced classes of employees in the executive branch.
Compensation relationships are equitable within the meaning of this subdivision when the
primary consideration in negotiating, establishing, recommending, and approving total
compensation is comparability of the value of the work in relationship to other positions in
the executive branch. new text begin A recognized system for classification analysis and its concurrent
point allocation system must be used in order to attain compensation equity. Classification
range maximums must fall within the system's point allocation window. Market-driven
forces are recognized as acceptable in order to maintain employee recruitment and
retention efforts whenever the compensation rates exceed the allocated points. No contract
executed under chapter 179A may modify, waive, or abridge this section and sections
43A.07 to 43A.121, 43A.15, and 43A.17 to 43A.21, except to the extent expressly
permitted in those sections. Any compensation equity adjustments must be made from
agency appropriations. Fifty percent of the compensation governed by this system must be
adjusted in fiscal year 2009 and the remaining compensation in fiscal year 2010.
new text end

Sec. 4.

Minnesota Statutes 2006, section 43A.17, subdivision 9, is amended to read:

Subd. 9.

deleted text begin Political subdivision deleted text end Compensation limit.

(a) The salary and the value
of all other forms of compensation of new text begin the positions in section 15A.0815 and new text end a person
employed by a political subdivision of this state, excluding a school district, or employed
under section 422A.03 may not exceed 110 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) 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.

(c) 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.

(d) 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.

(e) 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. 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.

Sec. 5.

Minnesota Statutes 2006, section 119A.03, subdivision 1, is amended to read:

Subdivision 1.

General.

The department is under the administrative control of
the commissioner. The commissioner is appointed by the governor with the advice and
consent of the senate. The commissioner must possess broad knowledge and experience
in strengthening children and families. The commissioner has the general powers as
provided in section 15.06, subdivision 6.

The commissioner's salary must be established according to the procedure in section
15A.0815 deleted text begin , in the same range as that specified for the commissioner of finance deleted text end .

Sec. 6.

Minnesota Statutes 2006, section 124D.385, subdivision 4, is amended to read:

Subd. 4.

Delegation to nonprofit.

The commission may create a private nonprofit
corporation that is exempt from taxation under section 501(c)(3) of the federal Internal
Revenue Code of 1986. If the commission creates a private nonprofit corporation, the
commission must serve as the corporation's board of directors. The private nonprofit
corporation is not subject to laws governing state agencies or political subdivisions,
except the provisions of chapter 13, the Open Meeting Law under chapter 13D, salary
limits under section 15A.0815, deleted text begin subdivision 2, deleted text end and audits by the legislative auditor under
chapter 3 apply. Further provided that the board of directors and the executive director
of the nonprofit corporation are each considered an "official" for purposes of section
10A.071. The commission may delegate any or all of its powers and duties under federal
law or under sections 124D.37 to 124D.45 to the corporation if the nonprofit corporation
is approved under federal law to administer the National and Community Service Trust
Act. The commission may revoke a delegation of powers and duties at any time, and must
revoke the delegation if the corporation is no longer approved under federal law as the
administrator in the state of Minnesota for the National and Community Service Trust Act.

Sec. 7.

Minnesota Statutes 2007 Supplement, section 216C.052, subdivision 2, is
amended to read:

Subd. 2.

Administrative issues.

(a) The commissioner may select the administrator.
The administrator must have at least five years of experience working as a power systems
engineer or transmission planner, or in a position dealing with power system reliability
issues, and may not have been a party or a participant in a commission energy proceeding
for at least one year prior to selection by the commissioner. The commissioner shall
oversee and direct the work of the administrator, annually review the expenses of the
administrator, and annually approve the budget of the administrator. The administrator
may hire staff and may contract for technical expertise in performing duties when existing
state resources are required for other state responsibilities or when special expertise is
required. The salary of the administrator is governed by section 15A.0815 deleted text begin , subdivision 2 deleted text end .

(b) Costs relating to a specific proceeding, analysis, or project are not general
administrative costs. For purposes of this section, "energy utility" means public utilities,
generation and transmission cooperative electric associations, and municipal power
agencies providing natural gas or electric service in the state.

(c) The Department of Commerce shall pay:

(1) the general administrative costs of the administrator, not to exceed $1,000,000
in a fiscal year, and shall assess energy utilities for those administrative costs. These
costs must be consistent with the budget approved by the commissioner under paragraph
(a). The department shall apportion the costs among all energy utilities in proportion to
their respective gross operating revenues from sales of gas or electric service within
the state during the last calendar year, and shall then render a bill to each utility on a
regular basis; and

(2) costs relating to a specific proceeding analysis or project and shall render a bill to
the specific energy utility or utilities participating in the proceeding, analysis, or project
directly, either at the conclusion of a particular proceeding, analysis, or project, or from
time to time during the course of the proceeding, analysis, or project.

(d) For purposes of administrative efficiency, the department shall assess energy
utilities and issue bills in accordance with the billing and assessment procedures provided
in section 216B.62, to the extent that these procedures do not conflict with this subdivision.
The amount of the bills rendered by the department under paragraph (c) must be paid by
the energy utility into an account in the special revenue fund in the state treasury within
30 days from the date of billing and is appropriated to the department for the purposes
provided in this section. The commission shall approve or approve as modified a rate
schedule providing for the automatic adjustment of charges to recover amounts paid by
utilities under this section. All amounts assessed under this section are in addition to
amounts appropriated to the commission and the department by other law.

Sec. 8.

Minnesota Statutes 2006, section 349A.02, subdivision 1, is amended to read:

Subdivision 1.

Director.

A State Lottery is established under the supervision and
control of a director. The director of the State Lottery shall be appointed by the governor
with the advice and consent of the senate. The director serves in the unclassified service at
the pleasure of the governor. deleted text begin The annual salary rate authorized for the director is equal to
95 percent of the salary rate prescribed for the governor.
deleted text end