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Minnesota Legislature

Office of the Revisor of Statutes

SF 2738

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to public employment; establishing financial parameters for public
employment contracts; amending Minnesota Statutes 2006, sections 179A.01;
179A.03, by adding subdivisions; 179A.07, subdivision 1; 179A.18, subdivision
1; 179A.20, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 179A.01, is amended to read:


179A.01 PUBLIC POLICY.

It is the public policy of this state and the purpose of sections 179A.01 to 179A.25 to
promote orderly and constructive relationships between all public employers and their
employees. This policy is subject to the paramount right of the citizens of this state to keep
inviolate the guarantees for their health, education, safety, and welfarenew text begin and is bounded by
the financial limitations of the state and its political subdivisions
new text end.

The relationships between the public, public employees, and employer governing
bodies involve responsibilities to the public and a need for cooperation and employment
protection which are different from those found in the private sector. The importance or
necessity of some services to the public can create imbalances in the relative bargaining
power between public employees and employers. As a result, unique approaches to
negotiations and resolutions of disputes between public employees and employers are
necessarynew text begin within and bounded by the financial limitations of the state and its political
subdivisions
new text end.

Unresolved disputes between the public employer and its employees are injurious to
the public as well as to the parties. Adequate means must be established for minimizing
them and providing for their resolution. Within these limitations and considerations, the
legislature has determined that overall policy is best accomplished by:

(1) granting public employees certain rights to organize and choose freely their
representatives;

(2) requiring public employers to meet and negotiate with public employees in
an appropriate bargaining unit and providing that the result of bargaining be in written
agreements; and

(3) establishing special rights, responsibilities, procedures, and limitations regarding
public employment relationships which will provide for the protection of the rights of the
public employee, the public employer, and the public at large.

Nothing in sections 179A.01 to 179A.25 impairs, modifies, or alters the authority of
the legislature to establish rates of pay, or retirement or other benefits for its employees.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 2.

Minnesota Statutes 2006, section 179A.03, is amended by adding a subdivision
to read:


new text begin Subd. 16a. new text end

new text begin Structural balance calculation. new text end

new text begin (a) "Structural balance calculation"
means that, under the uniform costing methodology, estimated operating expenditures,
including those operating expenditures resulting from a contract under this chapter during
the contract term and one additional fiscal year, must not exceed estimated ongoing
available funds over that time period. The employer must incorporate into its budgeting
process projections and calculations based at least upon the reasonable assumptions in
paragraphs (b) to (d).
new text end

new text begin (b) Onetime sources of revenue and any fund balances are not available funds for
ongoing expenditures.
new text end

new text begin (c) Projections and calculations of ongoing revenues and expenditures for the
contract period plus one additional fiscal year must include applicable state aid formulas
at current rates, pupil units for a school district, and employee costs, including the terms
of labor agreements, fringe benefits, severance pay, and actual retirements approved by
the employer.
new text end

new text begin (d) Expenditure cuts that will diminish the amount or the quality of service may not
be included in the calculations as a specific budget line item before or after a contract
under this chapter is settled in order to achieve structural balance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 3.

Minnesota Statutes 2006, section 179A.03, is amended by adding a subdivision
to read:


new text begin Subd. 19a. new text end

new text begin Terms and conditions of employment. new text end

new text begin (a) "Terms and conditions
of employment" means:
new text end

new text begin (1) the hours of employment and hourly wages for nonexempt employees under the
federal Fair Labor Standards Act (FLSA);
new text end

new text begin (2) the salary for exempt employees under the federal Fair Labor Standards Act;
new text end

new text begin (3) employer payment of, or contributions to, premiums for a group insurance plan,
and the design, terms, and selection of the plan;
new text end

new text begin (4) sick leave;
new text end

new text begin (5) vacation plan;
new text end

new text begin (6) probationary period not otherwise specified by law; and
new text end

new text begin (7) the term of the contract.
new text end

new text begin (b) In the case of professional employees, educational policies of a school district
are not included in the terms and conditions of employment.
new text end

new text begin (c) "Terms and conditions of employment" does not include retirement contributions
or benefits, other than employer payment of, or contribution to, premiums for a group
insurance plan, and the design, terms, and selection of the plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 4.

Minnesota Statutes 2006, section 179A.03, is amended by adding a subdivision
to read:


new text begin Subd. 19b. new text end

new text begin Uniform costing methodology. new text end

new text begin (a) "Uniform costing methodology"
means combining the categories of expenditures under this paragraph for the employer's
fiscal year (base year) that precedes the time period for which the parties are meeting and
negotiating (base year) and projecting the costs for those same expenditures into the
time period of the contract being negotiated. The bargaining unit employees used in the
base year remain unchanged for all years into which the categories of expenditures are
projected. The categories of expenditures must include at least the following:
new text end

new text begin (1) across-the-board or general wage increases;
new text end

new text begin (2) longevity increases of any type, including at least step increases;
new text end

new text begin (3) educational attainment increases of any type, including at least lane changes;
new text end

new text begin (4) pay differentials;
new text end

new text begin (5) performance compensation;
new text end

new text begin (6) additional compensation of any type for additional work performed;
new text end

new text begin (7) severance pay;
new text end

new text begin (8) early retirement incentives;
new text end

new text begin (9) employer contributions to state pension plans;
new text end

new text begin (10) employer contributions to supplemental pension plans;
new text end

new text begin (11) employer contributions to FICA;
new text end

new text begin (12) cash in lieu of or in exchange for benefits, including at least sick leave, personal
leave, or vacation;
new text end

new text begin (13) payments to substitute employees for incumbents on leaves of absences, paid
or unpaid;
new text end

new text begin (14) vacation pay; and
new text end

new text begin (15) employer contributions toward the cost of group insurance plan premiums
including the following:
new text end

new text begin (i) health insurance changes or increases;
new text end

new text begin (ii) dental insurance changes or increases;
new text end

new text begin (iii) life insurance changes or increases;
new text end

new text begin (iv) disability insurance changes or increases;
new text end

new text begin (v) long-term care insurance changes or increases; and
new text end

new text begin (vi) other insurance changes or increases.
new text end

new text begin (b) The parties may mutually agree upon additional expenditure categories.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 5.

Minnesota Statutes 2006, section 179A.07, subdivision 1, is amended to read:


Subdivision 1.

Inherent managerial policy.

A public employer deleted text beginisdeleted text end new text beginmay new text endnot deleted text beginrequired
to
deleted text end meet and negotiate on matters of inherent managerial policy. Matters of inherent
managerial policy include, but are not limited to, such areas of discretion or policy as the
functions and programs of the employer, its overall budget,new text begin calculations of structural
balance,
new text end utilization of technology, the organizational structure, selection of personnel, and
direction and the number of personnel. No public employer shall sign an agreement which
limits its right to select persons to serve as supervisory employees or state managers under
section 43A.18, subdivision 3, or requires the use of seniority in their selection.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 6.

Minnesota Statutes 2006, section 179A.18, subdivision 1, is amended to read:


Subdivision 1.

When authorized.

Essential employees may not strike. Except as
otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other public
employees may strike only under the following circumstances:

(1)deleted text begin(a)deleted text endnew text begin (i)new text end the collective bargaining agreement between their exclusive representative
and their employer has expired or, if there is no agreement, impasse under section
179A.17, subdivision 2, has occurred; deleted text beginanddeleted text end

deleted text begin (b)deleted text endnew text begin (ii)new text end the exclusive representative and the employer have participated in mediation
over a period of at least 45 days, provided that the mediation period established by section
179A.17, subdivision 2, governs negotiations under that section, and provided that for the
purposes of this subclause the mediation period commences on the day following receipt
by the commissioner of a request for mediation; deleted text beginordeleted text endnew text begin and
new text end

new text begin (iii) the final offer of the exclusive representative based on the uniform costing
methodology under section 179A.03, subdivision 19b, both individually and in aggregate
with other settlement, arbitration award, or recent offers of the exclusive representative
for contracts required under this chapter equals or is less than the structural balance
calculation under section 179A.03, subdivision 16a;
new text end

(2) the employer violates section 179A.13, subdivision 2, clause (9); or

(3) in the case of state employeesdeleted text begin,deleted text endnew text begin:
new text end

deleted text begin (a)deleted text endnew text begin (i)new text end the Legislative Coordinating Commission has rejected a negotiated agreement
or arbitration decision during a legislative interim; or

deleted text begin (b)deleted text endnew text begin (ii)new text end the entire legislature rejects or fails to ratify a negotiated agreement
or arbitration decision, which has been approved during a legislative interim by the
Legislative Coordinating Commission, at a special legislative session called to consider it,
or at its next regular legislative session, whichever occurs first.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any proposal or agreement made or modified after that date.
new text end

Sec. 7.

Minnesota Statutes 2006, section 179A.20, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Structural balance requirement. new text end

new text begin (a) Before a public employer enters
into a collective bargaining contract, and before an arbitrator or arbitration panel issues an
interest arbitration award, the public employer or the arbitrator must make a structural
balance calculation based on the uniform costing methodology. The arbitrator's calculation
must be based on information submitted by the employer using the uniform costing
methodology.
new text end

new text begin (b) A public employer may not enter into a collective bargaining contract, and an
arbitrator or arbitration panel may not issue an interest arbitration award, if the contract or
the interest arbitration award, as determined by the structural balance calculation would:
new text end

new text begin (1) cause estimated operating expenditures to exceed estimated ongoing available
funds during the contract term or during one additional fiscal year; or
new text end

new text begin (2) increase the amount by which estimated ongoing operating expenditures
exceed estimated ongoing available funds, if estimated ongoing operating expenditures
already exceed estimated ongoing available funds during the contract term or during
one additional fiscal year.
new text end