SF 3328

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state government; authorizing chartered 
  1.3             performance organizations within state agencies; 
  1.4             proposing coding for new law as Minnesota Statutes, 
  1.5             chapter 16F. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [16F.01] [CHARTERED PERFORMANCE ORGANIZATION.] 
  1.8      A chartered performance organization is an operating unit 
  1.9   within a state agency as described in this chapter.  The purpose 
  1.10  of a chartered performance organization is to deliver designated 
  1.11  services through a process that grants wholesale administrative 
  1.12  flexibility in exchange for a commitment to measurably better 
  1.13  results for the population served.  The commissioner of the 
  1.14  affected agency must prescribe the goals and direction of the 
  1.15  chartered performance organization.  Prior to the formation of a 
  1.16  chartered performance organization, the commissioner of the 
  1.17  agency must draft a charter to be approved by the commissioners 
  1.18  of administration and employee relations.  The charter must, at 
  1.19  a minimum, include: 
  1.20     (1) a clearly defined mission that can be easily understood 
  1.21  by the general public; 
  1.22     (2) a five-year strategic plan with measurable goals that 
  1.23  matter to citizens; 
  1.24     (3) a set of key performance indicators or measures such as 
  1.25  quality, financial, efficiency, productivity, and customer 
  2.1   service standards; 
  2.2      (4) an annual operating plan with specific performance 
  2.3   targets for the key measures; and 
  2.4      (5) a plan for flexibility in finance, human resources, 
  2.5   purchasing, and other administrative processes. 
  2.6      Sec. 2.  [16F.02] [MANAGEMENT OF A CHARTERED PERFORMANCE 
  2.7   ORGANIZATION.] 
  2.8      (a) The management of a chartered performance organization 
  2.9   is vested in a chief operating officer appointed by the 
  2.10  commissioner of the affected agency to a three-year term and 
  2.11  compensated as described in paragraph (c).  The appointment 
  2.12  shall be made on the basis of demonstrated ability in 
  2.13  management.  The commissioner may reappoint the chief operating 
  2.14  officer to subsequent terms so long as performance, as set forth 
  2.15  in the annual performance agreement, is satisfactory.  The chief 
  2.16  operating officer is removable by the governor or the 
  2.17  commissioner of the agency for misconduct or failure to meet 
  2.18  performance goals in the performance agreement described in 
  2.19  paragraph (b). 
  2.20     (b) The commissioner of the agency and the chief operating 
  2.21  officer shall enter into an annual performance agreement that 
  2.22  contains measurable organization and individual goals for the 
  2.23  chief operating officer in key operational areas that reflect 
  2.24  the organization's charter.  The agreement shall be subject to 
  2.25  review and renegotiation on at least an annual basis.  
  2.26     (c) The chief operating officer may be paid at an annual 
  2.27  rate of basic pay as determined by the commissioner of the 
  2.28  agency in consultation with the commissioners of finance and 
  2.29  administration.  The rate of payment must not exceed that of the 
  2.30  commissioner of the affected agency.  In addition, the chief 
  2.31  operating officer may receive a bonus in an amount up to, but 
  2.32  not in excess of, 50 percent of such annual rate of basic pay, 
  2.33  as determined by the commissioner of the affected agency in 
  2.34  consultation with the commissioners of finance and 
  2.35  administration.  The bonus must be based upon the commissioners' 
  2.36  evaluation of the chief operating officer's performance in 
  3.1   relation to the performance goals set forth in the performance 
  3.2   agreement described in paragraph (b).  Payment of a bonus under 
  3.3   this paragraph may be made to the chief operating officer only 
  3.4   to the extent that the payment does not cause the chief 
  3.5   operating officer's total aggregate compensation in a calendar 
  3.6   year to equal or exceed the amount of the governor's salary. 
  3.7      (d) The chief operating officer shall prepare an annual 
  3.8   management report containing information prescribed by the 
  3.9   commissioner of administration and submit the report by January 
  3.10  1 of each year to the commissioner of the affected agency and 
  3.11  the policy and finance committees of the senate and house of 
  3.12  representatives with jurisdiction over governmental operations. 
  3.13     Sec. 3.  [16F.03] [PERSONNEL FLEXIBILITIES; GENERAL.] 
  3.14     All employees of a chartered performance organization are 
  3.15  in the unclassified service.  Employees within a unit to which a 
  3.16  labor organization is accorded exclusive recognition are not 
  3.17  subject to any flexibility provided by this chapter unless the 
  3.18  exclusive representative and the certified performance 
  3.19  organization have entered into a written agreement that 
  3.20  specifically provides for the exercise of that flexibility.  The 
  3.21  chartered performance organization may also hire contract 
  3.22  employees as necessary to carry out its duties. 
  3.23     Sec. 4.  [16F.04] [PERFORMANCE MANAGEMENT.] 
  3.24     Subdivision 1.  [REQUIREMENTS.] The certified performance 
  3.25  organization must include a performance management system that 
  3.26  complies with subdivisions 2 to 4. 
  3.27     Subd. 2.  [INDIVIDUAL ACCOUNTABILITY.] The performance 
  3.28  management system must maintain individual accountability by: 
  3.29     (1) establishing one or more retention standards for each 
  3.30  employee related to the work of the employee and expressed in 
  3.31  terms of individual performance, and communicating the retention 
  3.32  standards to employees; 
  3.33     (2) making periodic determinations of whether each employee 
  3.34  meets or does not meet the employee's established retention 
  3.35  standards; and 
  3.36     (3) with respect to any employee whose performance does not 
  4.1   meet established retention standards, in accordance with 
  4.2   applicable provisions of law and regulation, denying any 
  4.3   increases in basic pay, promotions, and credit for performance 
  4.4   and reassigning the employee or taking other appropriate action 
  4.5   to resolve the performance problem.  
  4.6      Subd. 3.  [EFFECTIVENESS.] The performance management 
  4.7   system must strengthen its effectiveness by providing for: 
  4.8      (1) establishing goals or objectives for individual, group, 
  4.9   or organizational performance, or any combination thereof, 
  4.10  consistent with the annual performance agreement described in 
  4.11  section 16F.02 and the certified performance organization's 
  4.12  charter, and communicating those goals or objectives to 
  4.13  employees; 
  4.14     (2) using the goals and objectives to make performance 
  4.15  distinctions among employees or groups of employees; and 
  4.16     (3) using performance assessments as a basis for granting 
  4.17  employee awards, adjusting an employee's rate of basic pay, and 
  4.18  other appropriate personnel actions.  
  4.19     Subd. 4.  [AWARDS PROGRAM.] (a) The chief operating officer 
  4.20  shall establish an awards program designed to provide incentives 
  4.21  for and recognition of organizational, group, and individual 
  4.22  achievements by providing for granting awards to employees who, 
  4.23  as individuals or members of a group, contribute to meeting the 
  4.24  performance goals and objectives established under subdivision 3 
  4.25  by such means as a superior individual or group accomplishment, 
  4.26  a documented productivity gain, or sustained superior 
  4.27  performance. 
  4.28     (b) The certified performance organization may grant a cash 
  4.29  award in an amount not exceeding $25,000, with the approval of 
  4.30  the commissioner.  
  4.31     Sec. 5.  [16F.05] [RULES.] 
  4.32     A chartered performance organization is not subject to the 
  4.33  rulemaking provisions of chapter 14 or, specifically, section 
  4.34  14.386. 
  4.35     Sec. 6.  [16F.06] [PROCUREMENT.] 
  4.36     A chartered performance organization is not subject to 
  5.1   chapter 16C. 
  5.2      Sec. 7.  [PILOT.] 
  5.3      The governor shall select two agencies to form chartered 
  5.4   performance organizations that will be operational by January 1, 
  5.5   2003.  By that date, the commissioners of administration and 
  5.6   employee relations must submit a report to the policy and 
  5.7   finance committees of the senate and house of representatives 
  5.8   with jurisdiction over governmental operations on which agencies 
  5.9   have been selected and how the agencies are complying with 
  5.10  sections 1 to 6.