Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 287--H.F.No. 575
           An act relating to labor; providing for a competitive 
          state insurance fund; ratifying changes in the state 
          employee bargaining unit composition schedule; 
          ratifying state and University of Minnesota labor 
          agreements, compensation plans, and plans for early 
          retirement incentives; appropriating money; amending 
          Minnesota Statutes 1982, section 179.741, subdivision 
          1, and by adding a subdivision; proposing new law 
          coded as Minnesota Statutes, chapter 176A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
    Section 1.  Minnesota Statutes 1982, section 179.741, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STATE EMPLOYEES.] Subject to the 
provisions of section 179.742, subdivision 5, all appropriate 
units of state employees certified as of April 25, 1980 are 
abolished.  The following shall be the appropriate units of 
executive branch state employees for the purposes of sections 
179.61 to 179.76.  All units shall exclude employees excluded by 
section 179.74, subdivision 4 and supervisory employees shall 
only be assigned to units 12 and 16.  Unclassified employees, 
unless otherwise excluded, are included within the units which 
include the classifications to which they are assigned for 
purposes of compensation.  No additional units of executive 
branch state employees shall be recognized for the purpose of 
meeting and negotiating. 
    (1) Law enforcement unit.  This unit shall consist of all 
sworn state patrol personnel, all uniformed conservation 
officers, and all criminal apprehension agents. 
    (2) Craft, maintenance, and labor unit.  This unit shall 
consist of those classifications assigned to this unit in the 
unit composition schedule adopted by the legislative commission 
on employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (3) Service unit.  This unit shall consist of those 
classifications assigned to this unit in the unit composition 
schedule adopted by the legislative commission on employee 
relations on March 24, 1980, as amended through June 16, 1981 
May 4, 1982. 
    (4) Health care nonprofessional unit.  This unit shall 
consist of those classifications assigned to this unit in the 
unit composition schedule adopted by the legislative commission 
on employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (5) Health care professional unit.  This unit shall consist 
of all positions which are required to be filled by registered 
nurses. 
    (6) Clerical and office unit.  This unit shall consist of 
those classifications assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (7) Technical unit.  This unit shall consist of those 
classifications assigned to this unit in the unit composition 
schedule adopted by the legislative commission on employee 
relations on March 24, 1980, as amended through June 16, 1981 
May 4, 1982. 
    (8) Correctional Guards unit.  This unit shall consist of 
those classifications assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (9) State university instructional unit.  This unit shall 
consist of those positions assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (10) Community college instructional unit.  This unit shall 
consist of those positions assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (11) State university administrative unit.  This unit shall 
consist of those positions assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (12) Professional engineering supervisory unit.  This unit 
shall consist of those classifications assigned to this unit in 
the unit composition schedule adopted by the legislative 
commission on employee relations on March 24, 1980, as amended 
through June 16, 1981 May 4, 1982. 
    (13) Health treatment unit.  This unit shall consist of 
those classifications assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (14) General professional unit.  This unit shall consist of 
those classifications assigned to this unit in the unit 
composition schedule adopted by the legislative commission on 
employee relations on March 24, 1980, as amended through June 
16, 1981 May 4, 1982. 
    (15) Professional state residential instructional unit.  
This unit shall consist of those classifications assigned to 
this unit in the unit composition schedule adopted by the 
legislative commission on employee relations on March 24, 1980, 
as amended through June 16, 1981 May 4, 1982. 
    (16) Supervisory employees unit.  This unit shall consist 
of those positions assigned to this unit in the unit composition 
schedule adopted by the legislative commission on employee 
relations on March 24, 1980, as amended through June 16, 1981 
May 4, 1982. 
    Sec. 2.  Minnesota Statutes 1982, section 179.741, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [UNIT 12 EMPLOYEES.] Notwithstanding the changes 
made in the composition of unit 12 by this act, employees in 
unit 12 shall continue to be treated as supervisory employees 
for purposes of the right to strike and for purposes of interest 
arbitration.  
    Sec. 3.  [AMENDED UNIT COMPOSITION SCHEDULE.] 
    The unit composition schedule for state employees adopted 
by the legislative commission on employee relations on March 24, 
1980, as amended through the effective date of this section, is 
amended by striking the job classifications entitled "police 
training course supervisor" and "police training instructor" 
from unit (14) and inserting those job classifications into unit 
(1).  
    Sec. 4.  [STATE EMPLOYEE RATIFICATION.] 
    Subdivision 1.  [NEGOTIATED SUPPLEMENTAL AGREEMENTS.] The 
supplemental agreements negotiated between the state and the 
exclusive representatives of state bargaining units 1, 2, 3, 4, 
5, 6, 7, 8, 9, 10, 12, 14, and 16, providing for early 
retirement incentives, which were given interim approval by the 
legislative commission on employee relations after adjournment 
of the 1982 legislature, are ratified.  
    Subd. 2.  [COMMISSIONER'S PLAN.] The terms of the 
commissioner of employee relations' plan for unrepresented state 
employees, as amended and given interim approval by the 
legislative commission on employee relations after adjournment 
of the 1982 legislature, are ratified.  
    Sec. 5.  [UNIVERSITY RATIFICATION.] 
    Subdivision 1.  [EARLY RETIREMENT.] The supplemental labor 
agreements and other compensation plans approved by the board of 
regents, providing early retirement incentives for University of 
Minnesota employees, as approved by the legislative commission 
on employee relations after adjournment of the 1982 legislature, 
are ratified.  
    Subd. 2.  [UNREPRESENTED EMPLOYEES SALARY SUPPLEMENTS.] The 
salary supplements provided in the University of Minnesota 
regents' compensation plans, as approved by the legislative 
commission on employee relations after adjournment of the 1982 
legislature, are approved for the following groups of 
unrepresented employees:  nursing, clerical and office, 
technical, twin city instructional, noninstructional 
professional, outstate instructional, supervisory, managerial 
and confidential, and graduate assistants.  
    Subd. 3.  [DULUTH AND WASECA.] The salary supplements 
provided in the labor agreement between the regents of the 
University of Minnesota and the university education 
association, representing the organized faculty at the Duluth 
and Waseca campuses, is ratified, as approved by the legislative 
commission on employee relations on January 31, 1983.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1, 2, 4, and 5 are effective the day following 
final enactment.  Section 3 is effective July 1, 1983. 

                               ARTICLE 2 
    Section 1.  [176A.01] [DEFINITIONS.] 
    Subdivision 1.  [APPLICATION.] For the purposes of sections 
1 to 13, the terms defined in this section have the meanings 
given them.  
    Subd. 2.  "Manager" means the manager of the state 
compensation insurance fund.  
    Subd. 3.  "Fund" means the state compensation insurance 
fund.  
    Subd. 4.  "Board" means the board of directors of the state 
compensation insurance fund.  
    Subd. 5.  "Personal injury" or "injury" has the meaning 
given to it in section 176.011, subdivision 16.  
    Sec. 2.  [176A.02] [CREATION; PURPOSE; ORGANIZATION OF THE 
FUND.] 
    Subdivision 1.  [FUND CREATED.] The fund is created as a 
nonprofit independent public corporation for the purpose of 
insuring employers against liability for personal injuries for 
which their employees may be entitled to benefits under chapter 
176.  
    Subd. 2.  [BOARD OF DIRECTORS.] The board of directors 
consists of seven members and the commissioner of labor and 
industry who shall be an ex officio member.  Each director shall 
hold office until a successor is appointed and qualifies.  Each 
director shall represent a policyholder and may be an employee 
of a policyholder.  A policyholder may designate a person to 
represent them on the board.  The initial board of directors 
shall be appointed by the governor and shall consist of seven 
members, and the commissioner of labor and industry.  Each 
member of the initial board shall be either an employer or 
employee.  If the fund is operational and issuing policies upon 
the expiration of the terms of the initial board and thereafter, 
the governor shall appoint every other director until the 
governor has made four appointments.  The remaining three 
directors shall be chosen by the fund's policyholders.  In 
addition to the commissioner, no more than one member of the 
board shall be a representative of a governmental entity.  At 
least two members of the board shall represent private, for 
profit, enterprises.  No member of the board may represent or be 
an employee of an insurance company.  
    The membership terms shall be as provided in section 
15.0575.  The membership compensation shall be set by the board. 
    The board shall annually elect a chairman from among its 
members and other officers it deems necessary for the 
performance of its duties.  
    Subd. 3.  [FUND MANAGEMENT.] The management and control of 
the fund is vested solely in the board.  
    Subd. 4.  [POWERS AND DUTIES OF THE BOARD.] The board is 
vested with full power, authority, and jurisdiction over the 
fund.  The board may perform all acts necessary or convenient in 
the exercise of any power, authority, or jurisdiction over the 
fund, either in the administration of the fund or in connection 
with the insurance business to be carried on by it under the 
provisions of this chapter, as fully and completely as the 
governing body of a private insurance carrier to fulfill the 
objectives and intent of this chapter.  
    Subd. 5.  [MANAGER.] The fund is under the administrative 
control of the manager appointed by the board pursuant to 
section 5.  
    Subd. 6.  [PERSONAL LIABILITY, EXCLUDED.] The members of 
the board and officers or employees of the fund are not liable 
personally, either jointly or severally, for any debt or 
obligation created or incurred by the fund.  
    Sec. 3.  [176A.03] [SPECIFIC POWERS OF THE FUND.] 
    Subdivision 1.  [GENERAL.] For the purpose of carrying out 
its function the fund has the powers specified in this section.  
    Subd. 2.  [INSURE WORKERS' COMPENSATION LIABILITY.] The 
fund may insure an employer against any workers' compensation 
claim arising out of and in the course of employment, as fully 
as any other insurer.  
    Sec. 4.  [176A.04] [GENERAL POWERS.] 
    For the purpose of exercising the specific powers granted 
in this chapter and effectuating the other purposes of this 
chapter, the fund:  
    (a) may sue and be sued;  
    (b) may have a seal and alter it at will;  
    (c) may make, amend, and repeal rules relating to the 
conduct of the business of the fund;  
    (d) may enter into contracts relating to the administration 
of the fund;  
    (e) may rent, lease, buy, or sell property in its own name 
and may construct or repair buildings necessary to provide space 
for its operations;  
    (f) may declare a dividend when there is an excess of 
assets over liabilities, and minimum surplus requirements as 
consistent with chapter 60A;  
    (g) may pay medical expenses, rehabilitation expenses, 
compensation due claimants of insured employers, pay salaries, 
and pay administrative and other expenses;  
    (h) may hire personnel and set salaries and compensation; 
and 
    (i) may perform all other functions that are necessary or 
appropriate to administer the fund.  
    Sec. 5.  [176A.05] [MANAGER.] 
    Subdivision 1.  [APPOINTMENT, QUALIFICATIONS.] The board 
shall appoint a manager of the fund who shall be in charge of 
the day-to-day operation of the fund.  The manager shall have 
proven successful experience as an executive at the general 
management level.  The manager shall receive compensation as set 
by the board and shall serve at the pleasure of the board.  
    Subd. 2.  [BOND.] Before entering on the duties of the 
office, the manager shall qualify by giving an official bond in 
an amount and with sureties approved by the board.  The manager 
shall file the bond with the secretary of state.  The premium 
for the bond shall be paid by the fund from the account 
established in section 7.  
    Sec. 6.  [176A.06] [MANAGER'S POWERS.] 
    Subdivision 1.  [GENERAL.] Subject to the authority of the 
board and the provisions of this chapter the manager has the 
powers and duties prescribed in this section.  
    Subd. 2.  [SAFETY INSPECTION.] The manager may make safety 
inspections of risks and furnish advisory services to employers 
on safety and health measures.  
    Subd. 3.  [DISBURSEMENT OF FUNDS.] The manager may act for 
the fund in collecting and disbursing money necessary to 
administer the fund and conduct the business of the fund.  
    Subd. 4.  [ABSTRACT SUMMARY.] The manager shall have an 
abstract summary of any audit or survey conducted.  
    Subd. 5.  [GENERAL AUTHORITY.] The manager may perform all 
acts necessary in the exercise of any power, authority, or 
jurisdiction over the fund, either in the administration of the 
fund or in connection with the insurance business to be carried 
on by the fund under this chapter, including the establishment 
of premium rates.  
    Sec. 7.  [176A.07] [ACCOUNT.] 
    Subdivision 1.  [STATE COMPENSATION ACCOUNT.] There is 
created and established under the jurisdiction and control of 
the fund a revolving account known as the "state compensation 
account."  
    The manager shall deliver all money collected or received 
under this chapter to the account.  
    The money in the account may be used by the fund in 
carrying out its purpose under this chapter.  
    Subd. 2.  [PROPERTY OF FUND.] All premiums and other money 
paid to the fund, all property and securities acquired through 
the use of money belonging to the fund, and all interest and 
dividends earned upon money belonging to the fund and deposited 
or invested by the fund, are the sole property of the fund and 
shall be used exclusively for the operation and obligations of 
the fund.  The money of the fund is not state money.  The 
property of the fund is not state property.  
    Subd. 3.  [NO STATE APPROPRIATION.] The fund shall not 
receive any state appropriation at any time other than as 
provided by section 11.  
    Sec. 8.  [176A.08] [EXEMPTION FROM AND APPLICABILITY OF 
CERTAIN LAWS.] 
    The fund shall not be considered a state agency for any 
purpose including, but not limited to, chapters 13, 14, 15, 15A, 
and 43A.  However, the fund shall be subject to sections 179.61 
to 179.76.  The insurance operations of the fund are subject to 
all of the provisions of chapters 60A and 60B.  The commissioner 
of insurance has the same powers with respect to the board as 
the commissioner has with respect to a private workers' 
compensation insurer under chapters 60A and 60B.  The fund is 
considered an insurer for the purposes of chapters 60C, 72A, 79, 
and 176.  The fund is subject to the same tax liability as a 
mutual insurance company in this state pursuant to section 
60A.15, subdivision 2.  As a condition of its authority to 
transact business in this state the fund shall be a member of 
the workers' compensation reinsurance association and is bound 
by its plan of operation.  
    Sec. 9.  [176A.09] [PRIVATE INDEPENDENT INSURANCE AGENTS.] 
    Private independent insurance agents licensed to sell 
workers' compensation insurance in this state may sell insurance 
coverage for the fund according to rules adopted by the board. 
The board shall by rule also establish a schedule of commissions 
which the fund will pay for the services of an agent.  
    Sec. 10.  [176A.10] [ANNUAL REPORT.] 
    The manager shall submit an annual report pursuant to 
section 3.195 to the governor and legislature indicating the 
business done by the fund during the previous year and 
containing a statement of the resources and liabilities of the 
fund.  
    Sec. 11.  [APPROPRIATION.] 
    There is appropriated from the general fund to the state 
compensation insurance fund a sum of $125,600 to be available 
until expended.  There is appropriated from the general fund to 
the commissioner of finance the amounts of $1,176,900 in fiscal 
year 1984, and $4,424,900 in fiscal year 1985, for the purpose 
of transfer to the state compensation insurance fund upon 
certification of need in accordance with procedures developed by 
the commissioner.  If the appropriation for either year is 
insufficient, the appropriation for the other year is available 
for it.  Any amount appropriated or transferred plus interest at 
eight percent a year shall be amortized over a ten-year period 
and shall be repaid by the fund to the general fund in equal 
installments at the end of each fiscal year with the first 
payment occurring on June 30, 1986, provided that the fund shall 
not begin repayment on this date unless there exists sufficient 
earned surplus to comply with state law.  Repayment shall then 
begin under the terms of this subdivision when sufficient earned 
surplus exists.  
    Sec. 12.  [IMPLEMENTATION.] 
    The members of the board of directors shall be appointed no 
later than September 1, 1983.  The board shall act promptly to 
hire a manager, hire necessary employees, and acquire necessary 
facilities and supplies to begin operation.  The fund shall 
begin providing workers' compensation insurance coverage when 
the board determines that the fund is able to do so and all 
requirements under state law have been met.  
    Sec. 13.  [REPORT TO THE LEGISLATURE AND GOVERNOR.] 
    The commissioner of labor and industry shall, no later than 
March 1, 1986, report to the legislature and governor the 
operations of the fund up to that date.  The report shall 
include but not be limited to:  
    (1) the volume of premiums insured through the state fund 
and its share of the state workers' compensation insurance 
market;  
    (2) the percent division of premium dollars among various 
types of benefit payments and administrative costs for policies 
and claims under the state fund;  
    (3) the average rate of return enjoyed by the state fund on 
its invested assets;  
    (4) recommendations concerning desirable changes in the 
state fund to promote its prompt and efficient administration of 
policies and claims;  
    (5) a recommendation to the legislature and governor 
regarding the continued operation of the fund; and 
    (6) any other information the commissioner deems 
appropriate.  
    Sec. 14.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1983. 
    Approved June 7, 1983