SF 2736

as introduced - 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 3.855, subdivision 3; 15A.081, subdivisions 7c, 8; 15A.0815; 15A.082,
subdivisions 1, 3; 43A.01, subdivision 3; 43A.17, subdivision 9; 119A.03,
subdivision 1; 124D.385, subdivision 4; 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 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 employee
relations 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; new text begin and
new text end

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

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; and deleted text end

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

Sec. 2.

Minnesota Statutes 2006, section 15A.081, subdivision 7c, is amended to read:

Subd. 7c.

Minnesota State Colleges and Universities chancellor.

The Board of
Trustees of the Minnesota State Colleges and Universities shall establish a salary range for
the position of chancellor of the Minnesota State Colleges and Universities. deleted text begin The board
shall submit the proposed salary range to the Legislative Coordinating Commission for
approval, modification, or rejection in the manner provided in section 3.855. deleted text end The board
shall establish the salary for the chancellor within the approved salary range.

In deciding whether to approve a salary increase, the board shall consider the
performance of the chancellor in areas including educational leadership, student success,
system management, human resources, and affirmative action.

Sec. 3.

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. 4.

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 2 to 4, 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 deleted text end new text begin section 43A.17, subdivision 9 new text end .

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

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) deleted text begin 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.
deleted text end

deleted text begin (b) deleted text end Before deleted text begin submitting the recommendations deleted text end new text begin setting the salaries new text end , the new text begin governor or
other new text end appointing authority shall consult with the commissioner of employee relations
concerning the recommendations.

deleted text begin (c) deleted text end new text begin (b) new text end In deleted text begin making recommendations deleted text end new text begin setting the salaries new text end , 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) 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.
deleted text end

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

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

Sec. 5.

Minnesota Statutes 2006, section 15A.082, subdivision 1, is amended to read:

Subdivision 1.

Creation.

A Compensation Council is created each even-numbered
year to assist the legislature in establishing the compensation of constitutional officers,
members of the legislature, justices of the Supreme Court deleted text begin , deleted text end new text begin and new text end judges of the Court of
Appeals and district court deleted text begin , and the heads of state and metropolitan agencies included in
section 15A.0815 deleted text end .

Sec. 6.

Minnesota Statutes 2006, section 15A.082, subdivision 3, is amended to read:

Subd. 3.

Submission of recommendations.

deleted text begin (a) deleted text end By May 1 in each odd-numbered
year, the Compensation Council shall submit to the speaker of the house of representatives
and the president of the senate salary recommendations for constitutional officers,
legislators, justices of the Supreme Court, and judges of the Court of Appeals and district
court. The recommended salary for each office must take effect on the first Monday in
January of the next odd-numbered year, with no more than one adjustment, to take effect
on January 1 of the year after that. The salary recommendations for legislators, judges, and
constitutional officers take effect if an appropriation of money to pay the recommended
salaries is enacted after the recommendations are submitted and before their effective date.
Recommendations may be expressly modified or rejected. The salary recommendations
for legislators are subject to additional terms that may be adopted according to section
3.099, subdivisions 1 and 3.

deleted text begin (b) The council shall also submit to the speaker of the house of representatives and
the president of the senate recommendations for the salary ranges of the heads of state
and metropolitan agencies, to be effective retroactively from January 1 of that year if
enacted into law. The recommendations shall include the appropriate group in section
15A.0815 to which each agency head should be assigned and the appropriate limitation
on the maximum range of the salaries of the agency heads in each group, expressed as a
percentage of the salary of the governor.
deleted text end

Sec. 7.

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 The Hay system for classification analysis and its concurrent point
allocation system must be used in order to attain compensation equity. Classification range
minimums must fall within the Hay 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 Hay 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.
new text end

Sec. 8.

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 agency 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. 9.

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. 10.

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. 11.

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.