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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 667-S.F.No. 2003 
           An act relating to state government; providing for 
          salary ranges for certain state employees; clarifying 
          requirements for submitting certain salaries for 
          legislative approval; requiring certain reports; 
          regulating emergency civil service appointments; 
          clarifying limits on certain salaries; authorizing the 
          governor to change the salaries of newly appointed 
          agency heads; regulating affirmative action; 
          regulating separation from certain bargaining units; 
          regulating health and other fringe benefit coverages; 
          providing duties for the commissioner of employee 
          relations; amending Minnesota Statutes 1986, sections 
          15A.083, subdivision 7; 43A.04, subdivision 7; 43A.15, 
          subdivision 2; 43A.17, subdivisions 1 and 9; 43A.18, 
          subdivision 5; 43A.19, subdivision 1; 43A.23, 
          subdivisions 1 and 3; 43A.27, subdivision 3, and by 
          adding a subdivision; 175.101, by adding a 
          subdivision; and 179A.10, subdivision 3; Minnesota 
          Statutes 1987 Supplement, sections 15A.081, 
          subdivisions 1 and 7b; 43A.08, subdivision 1a; 
          43A.191, subdivision 3; 43A.316, subdivisions 2, 4, 8, 
          and by adding a subdivision; 43A.421; 44A.02, 
          subdivision 1; 79.34, subdivision 1; 176.611, 
          subdivisions 2 and 3a; and 214.04, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1987 Supplement, section 
15A.081, subdivision 1, is amended to read: 
    Subdivision 1.  The governor shall set the salary rate 
within the ranges listed below for positions specified in this 
subdivision, upon approval of the legislative commission on 
employee relations and the legislature as provided by section 
43A.18, subdivisions 2 and 5: 
                                                Salary Range 
                                                  Effective 
                                                July 1, 1987 
Commissioner of finance;                     $57,500-$78,500
Commissioner of education; 
Commissioner of transportation; 
Commissioner of human services; 
Commissioner of revenue; 
Executive director, state board of 
  investment; 
Commissioner of administration;              $50,000-$67,500
Commissioner of agriculture; 
Commissioner of commerce;
Commissioner of corrections;  
Commissioner of jobs and training;  
Commissioner of employee relations;  
Commissioner of energy and economic 
  development;  
Commissioner of health;  
Commissioner of labor and industry;  
Commissioner of natural resources;  
Commissioner of public safety;  
Commissioner of trade and economic development;
Chair, waste management board; 
Chief administrative law judge; office of
  administrative hearings;
Director, pollution control agency;
Director, state planning agency;
Executive director, housing finance 
  agency;  
Executive director, public employees
  retirement association; 
Executive director, teacher's 
  retirement association;  
Executive director, state retirement  
  system;
Chair, metropolitan council; 
Chair, regional transit board; 
Commissioner of human rights;                $42,500-$60,000
Director, department of public service; 
Commissioner of veterans' affairs; 
Director, bureau of mediation services; 
Commissioner, public utilities commission; 
Member, transportation regulation board;
Ombudsman for corrections;
Ombudsman for mental health and retardation.
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
15A.081, subdivision 7b, is amended to read:  
    Subd. 7b.  [HIGHER EDUCATION OFFICERS.] The state 
university board, the state board for community colleges, the 
state board of vocational technical education, and the higher 
education coordinating board shall set the salary rates for, 
respectively, the chancellor of the state universities, the 
chancellor of the community colleges, the state director of 
vocational technical education, and the executive director of 
the higher education coordinating board.  At least 30 days 
before the respective board adopts a salary increase according 
to this subdivision, The respective board shall submit the 
proposed salary increase to the legislative commission on 
employee relations for approval, modification, or rejection in 
the manner provided in section 43A.18, subdivision 2.  Salary 
rates for the positions specified in this subdivision may not 
exceed 95 percent of the salary set for of the governor under 
section 15A.082, subdivision 6 3. 
    Sec. 3.  Minnesota Statutes 1986, section 15A.083, 
subdivision 7, is amended to read:  
    Subd. 7.  [WORKERS' COMPENSATION COURT OF APPEALS AND 
COMPENSATION JUDGES.] Salaries of judges of the workers' 
compensation court of appeals shall be 90 percent of the salary 
for district judges as provided in subdivision 1.  Salaries of 
compensation judges shall be 75 percent of the salary of 
district court judges as provided in subdivision 1.  The chief 
workers' compensation settlement judge at the department of 
labor and industry may be paid an annual salary that is up to 
five percent greater than the salary of workers' compensation 
settlement judges at the department of labor and industry. 
    Sec. 4.  Minnesota Statutes 1986, section 43A.04, 
subdivision 7, is amended to read:  
    Subd. 7.  [REPORTING.] The commissioner shall issue a 
written report by January February 1 and July August 1 of each 
year to the chair of the legislative commission on employee 
relations.  The report shall must list the number of 
appointments made pursuant to under each of the categories in 
section 43A.15, subdivisions 2 to 12 the number made to the 
classified service other than under section 43A.15, and the 
number made pursuant to under section 43A.08, subdivision 2a, 
during the six-month period covered by the report periods ending 
June 30 and December 31, respectively.  
    Sec. 5.  Minnesota Statutes 1987 Supplement, section 
43A.08, subdivision 1a, is amended to read:  
    Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
authorities for the following agencies may designate additional 
unclassified positions according to this subdivision:  the 
departments of administration; agriculture; commerce; 
corrections; jobs and training; education; employee 
relations; energy trade and economic development; finance; 
health; human rights; labor and industry; natural resources; 
office of administrative hearings; public safety; public 
service; public welfare human services; revenue; transportation; 
and veterans affairs; the housing finance, state planning, and 
pollution control agencies; the state board of investment; the 
waste management board; the offices of the secretary of state, 
state auditor, and state treasurer; the state board of 
vocational technical education; and the school and resource 
center for the arts. 
    A position designated by an appointing authority according 
to this subdivision must meet the following standards and 
criteria:  
    (a) (1) the designation of the position would not be 
contrary to other law relating specifically to that agency; 
    (b) (2) the person occupying the position would report 
directly to the agency head or deputy agency head and would be 
designated as part of the agency head's management team; 
    (c) (3) the duties of the position would involve 
significant discretion and substantial involvement in the 
development, interpretation, and implementation of agency policy;
    (d) (4) the duties of the position would not require 
primarily personnel, accounting, or other technical expertise 
where continuity in the position would be important; 
    (e) (5) there would be a need for the person occupying the 
position to be accountable to, loyal to, and compatible with the 
governor and the agency head, or the employing constitutional 
officer; 
    (f) (6) the position would be at the level of division or 
bureau director or assistant to the agency head; and 
    (g) (7) the commissioner has approved the designation as 
being consistent with the standards and criteria in this 
subdivision. 
    Sec. 6.  Minnesota Statutes 1986, section 43A.15, 
subdivision 2, is amended to read:  
    Subd. 2.  [EMERGENCY APPOINTMENTS.] An appointing authority 
may make an emergency appointment for up to 30 working days.  If 
necessary, the commissioner may grant an extension of the 
emergency appointment for 15 additional working days.  No person 
shall may be employed in any one agency on an emergency basis 
for more than 30 45 working days in any 12-month period.  
    Sec. 7.  Minnesota Statutes 1986, section 43A.17, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SALARY LIMITS.] As used in this 
section subdivisions 1 to 8, "salary" means hourly, monthly, or 
annual rate of pay including any lump-sum payments and 
cost-of-living adjustment increases but excluding payments due 
to overtime worked, shift or equipment differentials, work out 
of class as required by collective bargaining agreements or 
plans established pursuant to under section 43A.18, and back pay 
on reallocation or other payments related to the hours or 
conditions under which work is performed rather than to the 
salary range or rate to which a class is assigned.  
    The salary, as established in section 15A.081, of the head 
of a state agency in the executive branch is the upper limit of 
compensation in the agency.  The salary of the commissioner of 
labor and industry is the upper limit of compensation of 
employees in the bureau of mediation services.  However, if an 
agency head is assigned a salary that is lower than the current 
salary of another agency employee, the employee shall retain 
retains the salary, but shall may not receive any an increase 
in salary as long as the salary is above that of the agency 
head.  The commissioner may grant exemptions from these upper 
limits as provided in subdivisions 3 and 4.  
    Sec. 8.  Minnesota Statutes 1986, section 43A.17, 
subdivision 9, is amended to read:  
    Subd. 9.  [POLITICAL SUBDIVISION SALARY LIMIT.] The salary 
of a person employed by a statutory or home rule charter city, 
county, town, school district, metropolitan or regional agency, 
or other political subdivision of this state, or 
employed pursuant to under section 422A.03, may not exceed 95 
percent of the salary of the governor as set under section 
15A.082, except as provided in this subdivision.  Deferred 
compensation and payroll allocations to purchase an individual 
annuity contract for an employee are included in determining the 
employee's salary.  The salary of a medical doctor occupying a 
position that the governing body of the political subdivision 
has determined requires an M.D. degree is excluded from the 
limitation in this subdivision.  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.  The commissioner 
may not increase the limitation until the commissioner has 
presented the proposed increase to the legislative commission on 
employee relations 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 recommended approval. 
    Sec. 9.  Minnesota Statutes 1986, section 43A.18, 
subdivision 5, is amended to read:  
    Subd. 5.  [GOVERNOR TO RECOMMEND CERTAIN SALARIES.] The 
governor shall, on or before by July 1 of each odd-numbered 
year, submit to the legislative commission on employee relations 
recommendations for salaries within the salary range for the 
positions listed in section 15A.081, subdivisions 1 and 7.  The 
governor may also propose additions or deletions of positions 
from those listed.  
    (a) Before submitting the recommendations, the governor 
shall consult with the commissioner of administration, the 
commissioner of finance, and the commissioner of employee 
relations concerning the recommendations.  
    (b) In making recommendations, the governor shall consider 
only those the criteria established in subdivision 8 and shall 
may not take into account performance of individual incumbents.  
The governor shall establish an objective system for quantifying 
knowledge, abilities, duties, responsibilities, and 
accountabilities and in determining recommendations rate each 
position by this system.  
    (c) Before the governor's recommended salaries take effect, 
the recommendations shall must be reviewed and approved, 
rejected, or modified by the legislative commission on employee 
relations and the legislature in the same manner as provided for 
the commissioner's plan in subdivision 2.  The governor may also 
at any time propose changes in the salary rate of any positions 
covered by this subdivision, which shall must be submitted and 
approved in the same manner as provided in this subdivision.  
    (d) The governor shall set the initial salary of a head of 
an a new agency or a chair of a new metropolitan board or 
commission hereafter established whose salary is not 
specifically prescribed by law shall be fixed by the governor, 
after consultation with the commissioner, whose 
recommendation shall be is advisory only, in an.  The amount 
of the new salary must be comparable to the salary of an agency 
head or commission chair having similar duties and 
responsibilities. 
    (e) The salary of a newly appointed head of an agency or 
chair of a metropolitan agency listed in section 15A.081, 
subdivision 1 or 7, may be increased or decreased by the 
governor from the salary previously set for that position within 
30 days of the new appointment after consultation with the 
commissioner.  If the governor increases a salary under this 
paragraph, the governor shall submit the new salary to the 
legislative commission on employee relations and the full 
legislature for approval, modification, or rejection in the 
manner provided in section 43A.18, subdivision 2.  If the 
legislature rejects an increased salary or adjourns without 
action during the following legislative session, the salary for 
the position reverts to the level in effect before the governor 
proposed the change. 
    Sec. 10.  Minnesota Statutes 1986, section 43A.19, 
subdivision 1, is amended to read:  
    Subdivision 1.  [STATEWIDE AFFIRMATIVE ACTION PROGRAM.] (a) 
To assure that positions in the executive branch of the civil 
service are equally accessible to all qualified persons, and to 
eliminate the underutilization of qualified members of protected 
groups, the commissioner shall adopt and periodically revise, if 
necessary, a statewide affirmative action program.  The 
statewide affirmative action program shall must consist of at 
least the following: 
    (1) objectives, long-range and interim goals, and policies; 
    (2) procedures, standards and assumptions to be used by 
agencies in the preparation of agency affirmative action plans, 
including methods by which goals and timetables shall be are 
established; and 
    (3) requirements for annual objectives and submission of 
affirmative action progress reports from heads of agencies. 
    (b) The commissioner shall base interim affirmative action 
goals on at least the following factors: 
    (1) the percentage of members of each protected class in 
the recruiting area population who have the necessary skills; 
    (2) the availability for promotion or transfer of members 
of protected classes in the recruiting area population; 
    (3) the extent of unemployment of members of protected 
classes in the recruiting area population; 
    (4) the existence of training programs in needed skill 
areas offered by employing agencies and other institutions; and 
    (5) the expected number of available positions to be filled.
    (c) The commissioner shall designate a state director of 
equal employment opportunity who may be delegated the 
preparation, revision, implementation and administration of the 
program.  The commissioner of employee relations may place the 
director's position in the unclassified service if the position 
meets the criteria established in section 43A.08, subdivision 1a.
    Sec. 11.  Minnesota Statutes 1987 Supplement, section 
43A.191, subdivision 3, is amended to read:  
    Subd. 3.  [SANCTIONS AND INCENTIVES.] (a) The director of 
equal employment opportunity shall annually audit the record of 
each agency to determine the rate of compliance with annual 
hiring goals of each goal unit and to evaluate the agency's 
overall progress toward its affirmative action goals and 
objectives.  
    (b) By February March 1 of each year, the commissioner 
shall submit a report on affirmative action progress of each 
agency and the state as a whole to the governor and to the 
finance committee of the senate, the appropriations committee of 
the house of representatives, and the governmental operations 
committees of both houses of the legislature, and the 
legislative commission on employee relations.  The report must 
include noncompetitive appointments made under section 43A.08, 
subdivision 2a, or 43A.15, and cover each agency's rate of 
compliance with annual hiring goals.  In addition, any agency 
that has not met its affirmative action hiring goals, that fails 
to make an affirmative action hire, or fails to justify its 
nonaffirmative action hire in 25 percent or more of the 
appointments made in the previous calendar year must be 
designated in the report as an agency not in compliance with 
affirmative action requirements. 
    (c) The commissioner shall study methods to improve the 
performance of agencies not in compliance with affirmative 
action requirements.  By January 15, 1986, the commissioner 
shall submit to the legislature a proposal for improving 
compliance rates.  This proposal must include penalties for 
noncompliance. 
    (d) The commissioner shall establish a program to recognize 
agencies that have made significant and measurable progress 
toward achieving affirmative action objectives. 
    Sec. 12.  Minnesota Statutes 1986, section 43A.23, 
subdivision 1, is amended to read:  
    Subdivision 1.  [GENERAL.] The commissioner is authorized 
to request bids from carriers or to negotiate with carriers and 
to enter into contracts with carriers which in the judgment of 
the commissioner are best qualified to underwrite and service 
the benefit plans.  The commissioner may negotiate premium rates 
and coverage provisions with all carriers licensed under 
chapters 62A, 62C, and 62D.  The commissioner may also negotiate 
reasonable restrictions to be applied to all carriers under 
chapters 62A, 62C, and 62D.  Contracts to underwrite the benefit 
plans shall must be bid or negotiated separately from contracts 
to service the benefit plans, which shall may be awarded only on 
the basis of competitive bids.  The commissioner shall consider 
the cost of the plans, conversion options relating to the 
contracts, service capabilities, character, financial position, 
and reputation of the carriers and any other factors which the 
commissioner deems appropriate.  Each benefit contract 
shall must be for a uniform term of at least one year, but may 
be made automatically renewable from term to term in the absence 
of notice of termination by either party.  The commissioner 
shall, to the extent feasible, make hospital and medical 
benefits available from at least one carrier licensed to do 
business pursuant to each of chapters 62A, 62C and 62D.  The 
commissioner need not provide health maintenance organization 
services to an employee who resides in an area which is not 
served by a licensed health maintenance organization.  The 
commissioner may refuse to allow a health maintenance 
organization to continue as a carrier if it was selected by less 
than 200 employees in the preceding benefit year.  The 
commissioner may elect not to offer all three types of carriers 
if there are no bids or no acceptable bids by that type of 
carrier or if the offering of additional carriers would result 
in substantial additional administrative costs.  Any A carrier 
licensed pursuant to under chapter 62A shall be is exempt from 
the tax imposed by section 60A.15 on premiums paid to it by the 
state. 
    Sec. 13.  Minnesota Statutes 1986, section 43A.23, 
subdivision 3, is amended to read:  
    Subd. 3.  [CONTRACT WITH INSURANCE CARRIERS.] The 
commissioner of labor and industry employee relations may 
contract with carriers authorized to provide coverage under the 
state employees group insurance plan to extend coverage to 
eligible employees who incur medical expenses due to a personal 
injury which results from their state employment which is 
compensable under chapter 176.  
    Sec. 14.  Minnesota Statutes 1986, section 43A.27, 
subdivision 3, is amended to read:  
    Subd. 3.  [RETIRED EMPLOYEES.] A retired employee of the 
state who receives an annuity under a state retirement program 
may elect to purchase at personal expense individual and 
dependent hospital, medical and dental coverages that are 
actuarially equivalent to those made available through 
collective bargaining agreements or plans established pursuant 
to section 43A.18 to employees in positions equivalent to that 
from which retired.  A spouse of a deceased retired employee who 
received an annuity under a state retirement program may 
purchase the coverage listed in this subdivision if the spouse 
was a dependent under the retired employee's coverage at the 
time of the employee's death.  Coverages shall must be 
coordinated with relevant health insurance benefits provided 
through the federally sponsored medicare program.  Appointing 
authorities shall provide notice to employees no later than the 
effective date of their retirement of the right to exercise the 
option provided in this subdivision.  The retired employee must 
notify the commissioner or designee of the commissioner within 
30 days after the effective date of the retirement of intent to 
exercise this option. 
    Sec. 15.  Minnesota Statutes 1986, section 43A.27, is 
amended by adding a subdivision to read:  
    Subd. 6.  [FOOD SERVICE EMPLOYEES.] Employees of a 
contracted food service operation at a member institution of the 
state university system, if the food service was operated by the 
institution itself before it was turned over to a contractor and 
if the employer and the representative of employees, defined 
under section 179.01, subdivision 5, agree, may, before January 
1, 1990, elect to enroll themselves and their dependents at 
their own or their employer's expense in the appropriate state 
plans for life insurance, hospital, medical, and dental 
benefits, and optional coverages at the time, in the manner, and 
under the conditions of eligibility the commissioner prescribes 
and otherwise approves. 
    Sec. 16.  Minnesota Statutes 1987 Supplement, section 
43A.316, subdivision 2, is amended to read:  
    Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
the terms defined in this subdivision have the meaning given 
them.  
    (a)  [COMMISSIONER.] "Commissioner" means the commissioner 
of employee relations.  
    (b)  [EMPLOYEE.] "Employee" means (1) a person who is a 
public employee within the definition of section 179A.03, 
subdivision 14, who is insurance eligible and is employed by an 
eligible employer or (2) a person employed by a labor 
organization or employee association certified as an exclusive 
representative of employees of an eligible employer or by 
another public employer approved by the commissioner.  
    (c)  [ELIGIBLE EMPLOYER.] "Eligible employer" means 
    (1) a public employer within the definition of section 
179A.03, subdivision 15, that is a town, county, city, school 
district as defined in section 120.02, educational cooperative 
service unit as defined in section 123.58, intermediate district 
as defined in section 136C.02, subdivision 7, cooperative center 
for vocational education as defined in section 123.351, regional 
management information center as defined in section 121.935, or 
an education unit organized under the joint powers action, 
section 471.59; or 
    (2) an exclusive representative of employees, as defined in 
paragraph (b); or 
    (3) another public employer approved by the commissioner. 
    (d)  [EXCLUSIVE REPRESENTATIVE.] "Exclusive representative" 
means an exclusive representative as defined in section 179A.03, 
subdivision 8.  
    (e)  [LABOR-MANAGEMENT COMMITTEE.] "Labor-management 
committee" means the committee established by subdivision 4.  
    (f)  [PLAN.] "Plan" means the statewide public employees 
insurance plan created by subdivision 3.  
    Sec. 17.  Minnesota Statutes 1987 Supplement, section 
43A.316, subdivision 4, is amended to read:  
    Subd. 4.  [LABOR-MANAGEMENT COMMITTEE.] There is created 
a The labor-management committee consists of ten members 
appointed by the commissioner.  The labor-management 
committee shall consist of must comprise five members who 
represent employees, including at least one retired employee, 
and five members who represent eligible employers.  Committee 
members are eligible for expense reimbursement in the same 
manner and amount as authorized by the commissioner's plan 
adopted under section 43A.18, subdivision 2.  The commissioner 
shall consult with the labor-management committee in major 
decisions that affect the plan.  The committee shall study 
issues relating to the insurance plan including, but not limited 
to, flexible benefits, utilization review, quality assessment, 
and cost efficiency.  
    Sec. 18.  Minnesota Statutes 1987 Supplement, section 
43A.316, subdivision 8, is amended to read:  
    Subd. 8.  [CONTINUATION OF COVERAGE.] (a) A participating 
employee who is laid off or is on unrequested leave may elect to 
continue the plan coverage.  This coverage is at the expense of 
the employee unless otherwise provided by a collective 
bargaining agreement.  Premiums for these employees shall must 
be established by the commissioner.  Coverage continues until 
one of the following occurs: 
    (1) the employee is reemployed and eligible for health care 
coverage under a group policy; or 
    (2) the insurance continuation periods required by state 
and federal laws expire. 
    (b) A participating employee who retires and is receiving 
an annuity or is eligible for and has applied for an annuity 
under chapter 352, 352B, 352C, 352D, 353, 354, 354A, 356, 422A, 
423, 423A, 424, or 490 is eligible to continue participation in 
the plan.  Any employer's contribution must cease when the 
retiree reaches age 65.  These employees, and employees who have 
already retired prior to the group from which they retired 
entering the plan, are eligible to participate as long as their 
group continues to participate.  This participation is at the 
retiree's expense unless a collective bargaining agreement 
provides otherwise.  Premiums for these participants must be 
established by the commissioner.  An employer shall notify an 
employee of this option no later than the effective date of 
retirement.  The retired employee shall notify the employer 
within 30 days of the effective date of retirement of intent to 
exercise this option. 
    (c) The spouse of a deceased, active, or retired employee 
may purchase the benefits provided at premiums established by 
the commissioner if the deceased retired employee received an 
annuity under chapter 352, 353, 354, 354A, 356, 422A, 423, 423A, 
or 424 and if the spouse was a dependent under the active or 
retired employee's coverage under this section at the time of 
the death of the retired employee.  These participants are 
eligible to participate as long as the group which included 
their spouse participates.  Coverage under this clause shall 
must be coordinated with relevant insurance benefits provided 
through the federally sponsored Medicare program.  
    (c) (d) The plan benefits shall must continue in the event 
of strike permitted by section 179A.18, if the exclusive 
representative chooses to have coverage continue and the 
employee pays the total monthly premiums when due.  
    (d) (e) A person who desires to participate under 
paragraphs (a) to (c) (d) shall notify the eligible employer or 
former employer of intent to participate according to rules 
established by the commissioner.  The eligible employer shall 
notify the commissioner, and coverage shall begin begins as soon 
as the commissioner permits. 
    Persons participating under these paragraphs shall make 
appropriate premium payments in the time and manner established 
by the commissioner. 
    Sec. 19.  Minnesota Statutes 1987 Supplement, section 
43A.316, is amended by adding a subdivision to read: 
    Subd. 10.  [BIDDING REQUIREMENT EXEMPTION.] The public 
employee insurance plan is exempt from the requirements imposed 
by section 471.616, subdivision 1. 
    Sec. 20.  Minnesota Statutes 1987 Supplement, section 
43A.421, is amended to read:  
    43A.421 [SUPPORTED WORK PROGRAM.] 
    A total of 50 additional full-time positions within 
agencies of state government may be selected for inclusion for a 
supported work program for persons with severe disabilities.  A 
full-time position may be shared by up to three persons with 
severe disabilities and their job coach.  The job coach is not a 
state employee within the scope of section 43A.02, subdivision 
21, or 179A.03, subdivision 14, unless the job coach holds 
another position within the scope of section 43A.02, subdivision 
21, or 179A.03, subdivision 14. 
    Sec. 21.  Minnesota Statutes 1987 Supplement, section 
44A.02, subdivision 1, is amended to read:  
    Subdivision 1.  [SELECTION.] The president of the world 
trade center corporation is selected by a majority of the board 
and serves at the pleasure of the board.  The president must be 
familiar with the international business community, and have 
demonstrated proficiency in communication skills, 
administration, and management.  The salary of the president is 
set by the board, but may not exceed the top of the salary range 
set for the commissioner of finance under section 15A.081, 
subdivision 1.  
    Sec. 22.  Minnesota Statutes 1987 Supplement, section 
79.34, subdivision 1, is amended to read:  
    Subdivision 1.  A The nonprofit association known as the 
workers' compensation reinsurance association is created, which 
may be incorporated under chapter 317 with all the powers of a 
corporation formed under that chapter, except that if the 
provisions of that chapter are inconsistent with sections 79.34 
to 79.40 or any amendments thereto, sections 79.34 to 79.40 
shall govern.  Each insurer as defined by section 79.01, 
subdivision 2, shall, as a condition of its authority to 
transact workers' compensation insurance in this state, be a 
member of the reinsurance association and shall be is bound by 
the plan of operation of the reinsurance association; provided, 
that all affiliated insurers within a holding company system as 
defined in sections 60D.01 to 60D.13 shall be are considered a 
single entity for purposes of the exercise of all rights and 
duties of membership in the reinsurance association.  Each 
self-insurer approved pursuant to under section 176.181 and each 
political subdivision which that self-insures shall, as a 
condition of its authority to self-insure workers' compensation 
liability in this state, be a member of the reinsurance 
association and shall be is bound by its plan of operation; 
provided, that: 
    (a) (1) all affiliated companies within a holding company 
system, as determined by the commissioner in a manner consistent 
with the standards and definitions in sections 60D.01 to 60D.13, 
shall be are considered a single entity for purposes of the 
exercise of all rights and duties of membership in the 
reinsurance association,; and 
    (b) (2) all group self-insurers granted authority to 
self-insure pursuant to section 176.181 shall be are considered 
a single entity entities for purposes of the exercise of all the 
rights and duties of membership in the reinsurance association.  
As a condition of its authority to self-insure workers' 
compensation liability, and for losses incurred on or after 
January 1, 1984 December 31, 1983, the state shall be is a 
member of the reinsurance association and is bound by its plan 
of operation.  The commissioner of labor and industry employee 
relations represents the state in the exercise of all the rights 
and duties of membership in the reinsurance association.  The 
state treasurer shall pay the premium to the reinsurance 
association from the state compensation revolving fund upon 
warrants of the commissioner of labor and industry employee 
relations.  For the purposes of this section "state" means the 
administrative branch of state government, the legislative 
branch, the judicial branch, the University of Minnesota, and 
any other entity whose workers' compensation liability is paid 
from the state revolving fund. The commissioner of finance may 
calculate, prorate, and charge a department or agency the 
portion of premiums paid to the reinsurance association for 
employees who are paid wholly or in part by federal funds, 
dedicated funds, or special revenue funds.  The reinsurance 
association is not a state agency.  Actions of the reinsurance 
association and its board of directors and actions of the 
commissioner of labor and industry with respect to the 
reinsurance association are not subject to chapters 13, 14, and 
15.  All property owned by the association is exempt from 
taxation.  The reinsurance association is not obligated to make 
any payments or pay any assessments to any funds or pools 
established pursuant to this chapter or chapter 176 or any other 
law. 
    Sec. 23.  Minnesota Statutes 1986, section 175.101, is 
amended by adding a subdivision to read: 
    Subd. 4.  The commissioner may designate a workers' 
compensation settlement judge at the department of labor and 
industry to serve as chief workers' compensation settlement 
judge.  The commissioner may revoke the designation at any 
time.  A revocation does not affect the revoked designee's 
status as a workers' compensation settlement judge. 
    Sec. 24.  Minnesota Statutes 1987 Supplement, section 
176.611, subdivision 2, is amended to read:  
    Subd. 2.  [STATE DEPARTMENTS.] Every department of the 
state, including the University of Minnesota, shall reimburse 
the fund for money paid for its claims and the costs of 
administering the revolving fund at such times and in such 
amounts as the commissioner of labor and industry employee 
relations shall certify has been paid out of the fund on its 
behalf.  The heads of the departments shall anticipate these 
payments by including them in their budgets.  In addition, the 
commissioner of labor and industry employee relations, with the 
approval of the commissioner of finance, may require an agency 
to make advance payments to the fund sufficient to cover the 
agency's estimated obligation for a period of at least 60 days.  
Reimbursements and other money received by the commissioner 
of labor and industry employee relations under this subdivision 
must be credited to the state compensation revolving fund. 
    Sec. 25.  Minnesota Statutes 1987 Supplement, section 
176.611, subdivision 3a, is amended to read:  
    Subd. 3a.  [LOANS.] To maintain an ongoing balance 
sufficient to pay sums currently due for benefits and 
administrative costs, the commissioner of finance, upon request 
of the commissioner of labor and industry employee relations, 
may transfer money from the general fund to the state 
compensation revolving fund.  Before requesting the transfer, 
the commissioner of labor and industry employee relations must 
decide there is not enough money in the fund for an immediate, 
necessary expenditure.  The amount necessary to make the 
transfer is appropriated from the general fund to the 
commissioner of finance.  The commissioner of labor and industry 
employee relations shall make schedules to repay the transferred 
money to the general fund.  The repayment may not extend beyond 
five years. 
    Sec. 26.  Minnesota Statutes 1986, section 179A.10, 
subdivision 3, is amended to read:  
    Subd. 3.  [STATE EMPLOYEE SEVERANCE.] Each of the following 
groups of employees has the right, as specified in this 
subdivision, to separate from the general professional, health 
treatment, or general supervisory units provided for in 
subdivision 2:  attorneys, physicians, professional employees of 
the higher education coordinating board who are compensated 
pursuant to under section 43A.18, subdivision 4, state 
patrol-supervisors, regional enforcement officers employed by 
the department of natural resources, and criminal apprehension 
investigative-supervisors.  This right shall must be exercised 
by petition during the 60-day period commencing 270 days prior 
to the termination of a contract covering the units.  If one of 
these groups of employees exercises the right to separate from 
the units they shall have no right to meet and negotiate, but 
shall retain the right to meet and confer with the commissioner 
of employee relations and with the appropriate appointing 
authority on any matter of concern to them.  The manner of 
exercise of the right to separate shall be must be exercised as 
follows:  An employee organization or group of employees 
claiming that a majority of any one of these groups of employees 
on a statewide basis wish to separate from their units may 
petition the director for an election during the petitioning 
period.  If the petition is supported by a showing of at least 
30 percent support for the petitioner from the employees, the 
director shall hold an election to ascertain the wishes of the 
majority with respect to the issue of remaining within or 
severing from the units provided in subdivision 2.  This 
election shall must be conducted within 30 days of the close of 
the petition period.  If a majority of votes cast endorse 
severance from the unit in favor of separate meet and confer 
status for any one of these groups of employees, the director 
shall certify that result.  This election shall, where not 
inconsistent with other provisions of this section, be is 
governed by section 179A.16.  If a group of employees elects to 
sever they, the group may rejoin that unit by following the same 
procedures specified above for severance, but may only do so 
during the periods provided for severance.  
    Sec. 27.  Minnesota Statutes 1987 Supplement, section 
214.04, subdivision 3, is amended to read:  
    Subd. 3.  The executive secretary of each health-related 
and non-health-related board shall be the chief administrative 
officer for the board but shall not be a member of the board.  
The executive secretary shall maintain the records of the board, 
account for all fees received by it, supervise and direct 
employees servicing the board, and perform other services as 
directed by the board.  The executive secretaries and other 
employees of the following boards shall be hired by the board, 
and the executive secretaries shall be in the unclassified civil 
service, except as provided in this subdivision:  
    (1) dentistry;  
    (2) medical examiners;  
    (3) nursing;  
    (4) pharmacy;  
    (5) accountancy; 
    (6) architecture, engineering, land surveying and landscape 
architecture;  
    (7) barber examiners;  
    (8) cosmetology;  
    (9) electricity;  
    (10) teaching; 
    (11) peace officer standards and training; 
    (12) social work; 
    (13) marriage and family therapy; 
    (14) unlicensed mental health service providers; and 
    (15) office of social work and mental health boards. 
    The board of medical examiners shall set the salary of its 
executive director, which may not exceed 95 percent of the top 
of the salary range set for the commissioner of health in 
section 15A.081, subdivision 1.  In June of the year in which a 
salary increase is to be adopted, and at least 30 days before 
the board of medical examiners adopts a salary increase for its 
executive director, The board shall submit the a proposed salary 
increase to the legislative commission on employee relations and 
the full legislature for approval, modification, or rejection in 
the manner provided in section 43A.18, subdivision 2.  
    The executive secretaries serving the remaining boards 
shall be are hired by those boards, and shall be are in the 
unclassified civil service, except for part-time executive 
secretaries, who are not required to be in the unclassified 
service.  Boards not requiring a full-time executive secretary 
secretaries may employ such services them on a part-time basis.  
To the extent practicable, the sharing of part-time executive 
secretaries by boards being serviced by the same department is 
encouraged.  Persons providing services to those boards not 
listed in this subdivision, except executive secretaries of the 
boards and employees of the attorney general, shall be are 
classified civil service employees of the department servicing 
the board.  To the extent practicable, the commissioner shall 
ensure that staff services are shared by the boards being 
serviced by the department.  If necessary, a board may hire 
part-time, temporary employees to administer and grade 
examinations. 
     Sec. 28.  [WASTE MANAGEMENT BOARD EMPLOYEES.] 
     By January 1, 1989, the commissioner of employee relations 
shall transfer employees of the waste management board in the 
unclassified service to the classified service of the state 
without competitive or qualifying examination and shall place 
them in their proper classifications.  A transferred employee 
with less than six months of service in the employee's position 
at the time of the transfer shall serve a probationary period 
appropriate for the employee's classification under section 
43A.16.  The probation period must include the time since the 
employee's hire in the unclassified position from which the 
employee was transferred.  This section does not apply to the 
chair of the board, the assistant to the chair, and one 
confidential secretary to the board.  
    Sec. 29.  [CERTAIN FOOD SERVICE EMPLOYEES.] 
    Food service employees covered by section 15 who 
participate in the state group insurance plan are transferred to 
the public employees insurance plan under Minnesota Statutes, 
section 43A.316, effective January 1, 1990, or when the 
commissioner of employee relations certifies that the plan is 
able to enroll and provide coverage for groups, whichever is 
later.  Food service employees covered by section 15 who do not 
participate in the state group insurance plan are eligible to 
participate in the public employees insurance plan under 
Minnesota Statutes, section 43A.316, effective September 1, 1989.
    Approved April 26, 1988