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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1991 

                        CHAPTER 238-H.F.No. 1147 
           An act relating to public employment; transferring 
          certain state employees from the unclassified to the 
          classified service; requiring a study; requiring rules 
          for evaluating the performance of arbitrators; 
          establishing deadlines for certain steps in the 
          arbitration process; establishing a procedure for 
          setting the dates for meetings of arbitration panels; 
          permitting payment of money by payroll deduction to 
          credit unions as well as payment by direct deposit to 
          credit unions or financial institutions; amending 
          Minnesota Statutes 1990, sections 16A.133, subdivision 
          1; 16B.88, subdivision 1; 43A.08, subdivisions 1, 1a, 
          and by adding a subdivision; 43A.18, subdivision 4; 
          43A.37, subdivision 1; 116K.04, subdivision 5; 
          144A.52, subdivision 1; 179A.05, subdivision 6; 
          179A.16, subdivisions 4, 6, and 7; 196.23, subdivision 
          1; 240A.02, subdivision 3; 241.01, subdivision 3a; 
          241.43, subdivisions 1 and 2; 299A.30, subdivision 1; 
          349A.02, subdivision 4; 446A.03, subdivision 5; 
          amending Laws 1984, chapter 654, article 2, section 
          152, subdivision 3; and Laws 1987, chapter 386, 
          article 1, section 11; repealing Minnesota Statutes 
          1990, sections 116J.615, subdivision 3; and 352D.02, 
          subdivision 1b. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                   TRANSFER OF UNCLASSIFIED POSITIONS
    Section 1.  Minnesota Statutes 1990, section 16B.88, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INFORMATION CENTER FOR VOLUNTEER 
PROGRAMS.] There is created in the office of the commissioner 
the office on volunteer services, hereafter referred to as "the 
office."  The office shall be on volunteer services is under the 
supervision and administration of an executive director to be 
appointed by the commissioner and hereinafter referred to in 
this section as "director."  The director shall remain in the 
unclassified service.  The office shall operate as a state 
information center for volunteer programs and needed services 
that could be delivered by volunteer programs.  Any A person or 
public or private agency may request information on the 
availability of volunteer programs relating to specific services 
and may report to the director whenever a volunteer program is 
needed or desired. 
    Sec. 2.  Minnesota Statutes 1990, section 43A.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
positions are held by employees who are: 
    (a) (1) chosen by election or appointed to fill an elective 
office; 
    (b) (2) heads of agencies required by law to be appointed 
by the governor or other elective officers, and the executive or 
administrative heads of departments, bureaus, divisions, and 
institutions specifically established by law in the unclassified 
service; 
    (c) (3) deputy and assistant agency heads and one 
confidential secretary in the agencies listed in subdivision 1a; 
    (d) (4) the confidential secretary to each of the elective 
officers of this state and, for the secretary of state, state 
auditor, and state treasurer, an additional deputy, clerk, or 
employee; 
    (e) (5) intermittent help employed by the commissioner of 
public safety to assist in the issuance of vehicle licenses; 
    (f) (6) employees in the offices of the governor and of the 
lieutenant governor and one confidential employee for the 
governor in the office of the adjutant general; 
    (g) (7) employees of the Washington, D.C., office of the 
state of Minnesota; 
    (h) (8) employees of the legislature and of legislative 
committees or commissions; provided that employees of the 
legislative audit commission, except for the legislative 
auditor, the deputy legislative auditors, and their confidential 
secretaries, shall be employees in the classified service; 
    (i) (9) presidents, vice-presidents, deans, other managers 
and professionals in academic and academic support programs, 
administrative or service faculty, teachers, research 
assistants, and student employees eligible under terms of the 
federal economic opportunity act work study program in the 
school and resource center for the arts, state universities and 
community colleges, but not the custodial, clerical, or 
maintenance employees, or any professional or managerial 
employee performing duties in connection with the business 
administration of these institutions; 
    (j) (10) officers and enlisted persons in the national 
guard; 
    (k) (11) attorneys, legal assistants, examiners, and three 
confidential employees appointed by the attorney general or 
employed with the attorney general's authorization; 
    (l) (12) judges and all employees of the judicial branch, 
referees, receivers, jurors, and notaries public, except 
referees and adjusters employed by the department of labor and 
industry; 
    (m) (13) members of the state patrol; provided that 
selection and appointment of state patrol troopers shall must be 
made in accordance with applicable laws governing the classified 
service; 
    (n) (14) chaplains employed by the state; 
    (o) (15) examination monitors and intermittent training 
instructors employed by the departments of employee relations 
and commerce and by professional examining boards; 
    (p) (16) student workers; 
    (q) (17) one position in the hazardous substance 
notification and response activity in the department of public 
safety; 
    (r) (18) employees unclassified pursuant to other statutory 
authority; 
    (s) (19) intermittent help employed by the commissioner of 
agriculture to perform duties relating to pesticides, 
fertilizer, and seed regulation; and 
    (t) (20) the administrators and the deputy administrators 
at the state academies for the deaf and the blind. 
    Sec. 3.  Minnesota Statutes 1990, 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; 
trade and economic development; finance; gaming; health; human 
rights; labor and industry; natural resources; office of 
administrative hearings; public safety; public service; human 
services; revenue; transportation; and veterans affairs; the 
housing finance, state planning, and pollution control agencies; 
the state lottery division; the state board of investment; the 
office of waste management; the offices of the attorney general, 
secretary of state, state auditor, and state treasurer; the 
state board of technical colleges; the higher education 
coordinating board; the Minnesota center for arts education; and 
the Minnesota zoological board. 
    A position designated by an appointing authority according 
to this subdivision must meet the following standards and 
criteria:  
    (1) the designation of the position would not be contrary 
to other law relating specifically to that agency; 
    (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; 
    (3) the duties of the position would involve significant 
discretion and substantial involvement in the development, 
interpretation, and implementation of agency policy; 
    (4) the duties of the position would not require primarily 
personnel, accounting, or other technical expertise where 
continuity in the position would be important; 
    (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; 
    (6) the position would be at the level of division or 
bureau director or assistant to the agency head; and 
    (7) the commissioner has approved the designation as being 
consistent with the standards and criteria in this subdivision. 
    Sec. 4.  Minnesota Statutes 1990, section 43A.08, is 
amended by adding a subdivision to read: 
    Subd. 4.  [LENGTH OF SERVICE FOR STUDENT WORKERS.] A person 
may not be employed as a student worker in the unclassified 
service under subdivision 1 for more than 36 months.  Employment 
at a school that a student attends is not counted for purposes 
of this 36-month limit. 
    Sec. 5.  Minnesota Statutes 1990, section 43A.18, 
subdivision 4, is amended to read: 
    Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
COMMISSIONER.] Notwithstanding any other law to the contrary, 
total compensation for employees listed in this subdivision must 
be set by appointing authorities within the limits of 
compensation plans that have been approved by the commissioner 
before becoming effective.  Compensation plans established under 
paragraphs (b), (c), and (d) must be approved by the legislature 
and the legislative commission on employee relations under 
subdivision 2 before becoming effective. 
    (a) Total compensation for employees who are not covered by 
a collective bargaining agreement in the offices of the 
governor, lieutenant governor, attorney general, secretary of 
state, state auditor, and state treasurer must be determined by 
the governor, lieutenant governor, attorney general, secretary 
of state, state auditor, and state treasurer, respectively.  
    (b) Total compensation for unclassified positions pursuant 
to under section 43A.08, subdivision 1, clause (i) (9), in the 
state universities and the community colleges not covered by a 
collective bargaining agreement must be determined by the state 
university board and the state board for community colleges, 
respectively. 
    (c) Total compensation for classified administrative law 
judges in the office of administrative hearings must be 
determined by the chief administrative law judge.  
    (d) Total compensation for unclassified positions not 
covered by a collective bargaining agreement in the higher 
education coordinating board and in the state board of technical 
colleges must be determined by the higher education coordinating 
board and the state board of technical colleges, respectively. 
    Sec. 6.  Minnesota Statutes 1990, section 43A.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTIFICATION.] Neither the commissioner 
of finance nor any other fiscal officer of this state may draw, 
sign, or issue, or authorize the drawing, signing, or issuing of 
any warrant on the treasurer or other disbursing officer of the 
state, nor may the treasurer or other disbursing officer of the 
state pay any salary or compensation to any person in the civil 
service, unless a payroll register for the salary or 
compensation containing the name of every person to be paid 
bears the certificate of the commissioner that the persons named 
in the payroll register have been appointed as required by law, 
rules, or administrative procedures and that the salary or 
compensation is within the compensation plan fixed by law.  The 
appointing authority shall certify that all employees named in 
the payroll register are performing service as required by law.  
This provision does not apply to positions defined in section 
43A.08, subdivision 1, clauses (h), (i), (j), (8), (9), (10), 
and (l) (12).  Employees to whom this subdivision does not apply 
may be paid on the state's payroll system, and the appointing 
authority or fiscal officer submitting their payroll register is 
responsible for the accuracy and legality of the payments. 
    Salary or compensation claims presented against existing 
appropriations, which have been deemed in violation of the 
provisions of this subdivision, may be certified for payment if, 
upon investigation, the commissioner determines the personal 
services for which payment is claimed actually have been 
rendered in good faith without collusion and without intent to 
defraud. 
    Sec. 7.  Minnesota Statutes 1990, section 116K.04, 
subdivision 5, is amended to read: 
    Subd. 5.  (1) The land management information center is 
established to foster integration of environmental information 
and provide services in computer mapping and graphics, 
environmental analysis, and small systems development.  
    (2) The commissioner shall periodically compile studies of 
land use and natural resources on the basis of county, regional, 
and other political subdivisions.  
    (3) The commissioner shall charge fees to clients for 
information products and services.  Fees shall be deposited in 
the state treasury and credited to the land management 
information center revolving account.  Money in the account is 
appropriated to the state planning agency for operation of the 
land management information system, including the cost of all 
services, supplies, materials, labor, and equipment, as well as 
the portion of the general support costs and statewide indirect 
costs of the agency that is attributable to the land management 
information system.  The commissioner may require a state agency 
to make advance payments to the revolving account sufficient to 
cover the agency's estimated obligation for a period of 60 days 
or more.  If the revolving account is abolished or liquidated, 
the total net profit from operations shall must be distributed 
to the various funds from which purchases were made.  The amount 
to be distributed to each fund shall must bear to the net profit 
the same ratio as the total purchases from each fund bears to 
the total purchases from all the funds during a period of time 
that fairly reflects the amount of net profit each fund is 
entitled to receive under this distribution.  Employees paid 
from this account are in the unclassified service. 
    Sec. 8.  Minnesota Statutes 1990, section 144A.52, 
subdivision 1, is amended to read: 
    Subdivision 1.  The office of health facility complaints is 
hereby created in the department of health.  The office shall be 
headed by a director appointed by the state commissioner of 
health.  The director shall report to and serve at the pleasure 
of the state commissioner of health. 
    The commissioner of health shall provide the office of 
health facility complaints with office space, administrative 
services and secretarial and clerical assistance. 
    Sec. 9.  Minnesota Statutes 1990, section 196.23, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT OF SECTION.] The 
commissioner shall establish an Agent Orange information and 
assistance section in the department of veterans affairs.  The 
section shall be headed by a director who shall serve in the 
unclassified service.  The commissioner shall provide the 
director with office space, administrative services, and 
clerical support.  
    Sec. 10.  Minnesota Statutes 1990, section 240A.02, 
subdivision 3, is amended to read: 
    Subd. 3.  [STAFF.] The commission shall appoint an 
executive director, who may hire other employees authorized by 
the commission.  The executive director and any other employees 
are is in the unclassified service under section 43A.08. 
    Sec. 11.  Minnesota Statutes 1990, section 241.01, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [COMMISSIONER, POWERS AND DUTIES.] The 
commissioner of corrections has the following powers and duties: 
    (a) To accept persons committed to the commissioner by the 
courts of this state for care, custody, and rehabilitation. 
    (b) To determine the place of confinement of committed 
persons in a correctional facility or other facility of the 
department of corrections and to prescribe reasonable conditions 
and rules for their employment, conduct, instruction, and 
discipline within or outside the facility.  Inmates shall not 
exercise custodial functions or have authority over other 
inmates.  Inmates may serve on the board of directors or hold an 
executive position subordinate to correctional staff in any 
corporation, private industry or educational program located on 
the grounds of, or conducted within, a state correctional 
facility with written permission from the chief executive 
officer of the facility.  
    (c) To administer the money and property of the department. 
    (d) To administer, maintain, and inspect all state 
correctional facilities. 
    (e) To transfer authorized positions and personnel between 
state correctional facilities as necessary to properly staff 
facilities and programs. 
    (f) To utilize state correctional facilities in the manner 
deemed to be most efficient and beneficial to accomplish the 
purposes of this section, but not to close the Minnesota 
correctional facility-Stillwater or the Minnesota correctional 
facility-St. Cloud without legislative approval.  The 
commissioner may place juveniles and adults at the same state 
minimum security correctional facilities, if there is total 
separation of and no regular contact between juveniles and 
adults, except contact incidental to admission, classification, 
and mental and physical health care.  
    (g) To organize the department and employ personnel the 
commissioner deems necessary to discharge the functions of the 
department, including a chief executive officer for each 
facility under the commissioner's control who shall serve in the 
unclassified civil service and may, under the provisions of 
section 43A.33, be removed only for cause, and two internal 
affairs officers for security who shall be in the unclassified 
civil service. 
    (h) To define the duties of these employees and to delegate 
to them any of the commissioner's powers, duties and 
responsibilities, subject to the commissioner's control and the 
conditions the commissioner prescribes. 
    (i) To annually develop a comprehensive set of goals and 
objectives designed to clearly establish the priorities of the 
department of corrections.  This report shall be submitted to 
the governor and the state legislature commencing January 1, 
1976.  The commissioner may establish ad hoc advisory committees.
    Sec. 12.  Minnesota Statutes 1990, section 241.43, 
subdivision 1, is amended to read: 
    Subdivision 1.  The ombudsman may select, appoint, and 
compensate out of available funds such assistants and employees 
as deemed necessary to discharge responsibilities.  All 
employees, except the secretarial and clerical staff, shall 
serve at the pleasure of the ombudsman in the unclassified 
service.  The ombudsman and full-time staff shall be members of 
the Minnesota state retirement association.  
    Sec. 13.  Minnesota Statutes 1990, section 241.43, 
subdivision 2, is amended to read: 
    Subd. 2.  The ombudsman shall designate an assistant to be 
a the deputy ombudsman in the unclassified service.  
    Sec. 14.  Minnesota Statutes 1990, section 299A.30, 
subdivision 1, is amended to read: 
    Subdivision 1.  [OFFICE; ASSISTANT COMMISSIONER.] The 
office of drug policy is an office in the department of public 
safety headed by an assistant commissioner appointed by the 
commissioner to serve in the unclassified service.  The 
assistant commissioner may appoint other employees in the 
unclassified service.  The assistant commissioner shall 
coordinate the activities of drug program agencies and serve as 
staff to the drug abuse prevention resource council.  
    Sec. 15.  Minnesota Statutes 1990, section 349A.02, 
subdivision 4, is amended to read: 
    Subd. 4.  [EMPLOYEES; CLASSIFICATION.] The director may 
appoint other personnel as are necessary to operate the state 
lottery.  Employees of the division who are not professional 
employees as defined in section 179A.03, subdivision 13, and 
employees whose primary responsibilities are in data processing 
and accounting, are in the classified service.  All other 
employees of the division are in the unclassified service.  All 
professional employees as defined in section 179A.03, 
subdivision 13, whose primary responsibilities are in marketing 
are in the unclassified service.  All other employees of the 
division are in the classified service.  At least one position 
in the division must be an attorney position and the 
director must shall employ in that position an attorney to 
perform legal services for the division.  
    Sec. 16.  Minnesota Statutes 1990, section 446A.03, 
subdivision 5, is amended to read: 
    Subd. 5.  [EXECUTIVE DIRECTOR.] The commissioner shall 
employ, with the concurrence of the authority, an executive 
director.  The director shall perform duties that the authority 
may require in carrying out its responsibilities.  The executive 
director's position is in the unclassified service. 
    Sec. 17.  Laws 1984, chapter 654, article 2, section 152, 
subdivision 3, is amended to read:  
    Subd. 3.  [POWERS OF COMMISSION.] (a) [GENERAL.] The 
commission shall have all powers necessary or convenient to 
discharge the duties imposed by law, including those specified 
in this section. 
    (b) [ACTIONS.] The commission may sue and be sued and shall 
is a public body within the meaning of chapter 562. 
    (c) [EMPLOYEES; CONTRACTS FOR SERVICES.] The commissioner 
of energy and economic development may employ persons and 
contract for services necessary to carry out the functions of 
the commission.  Employees are in the unclassified service and 
members of the Minnesota State Retirement System. 
    (d) [RESEARCH.] The commission may conduct research studies 
and programs, collect and analyze data, prepare reports, maps, 
charts, and tables, and conduct all necessary hearings and 
investigations in connection with its functions. 
    Sec. 18.  Laws 1987, chapter 386, article 1, section 11, is 
amended to read: 
    Sec. 11.  [RURAL DEVELOPMENT BOARD COMPLEMENT.] 
    The approved complement of the rural development board is 
six and one-half positions, with six positions in the 
unclassified service and one-half position in the classified 
service, one of which is an executive director position. 
    Sec. 19.  [UNCLASSIFIED POSITIONS IN THE DEPARTMENT OF 
NATURAL RESOURCES.] 
    Notwithstanding Laws 1985, First Special Session chapter 
15, section 4, subdivision 3, paragraph (g), and Laws 1987, 
chapter 400, section 5, subdivision 4, paragraph (e), positions 
in the department of natural resources established for the 
reinvest in Minnesota fund under Minnesota Statutes, sections 
84.025, subdivision 9, and 84.95, are transferred to the 
classified service.  Incumbents of positions that are 
transferred to the classified service on the effective date of 
this section must be moved to the classified service without 
examination and begin to serve a probationary period in the 
class. 
    Sec. 20.  [UNCLASSIFIED POSITIONS IN THE COMMUNITY COLLEGE 
AND STATE UNIVERSITY SYSTEMS.] 
    The commissioner of employee relations, with the 
chancellors of the state university and community college 
systems, shall develop criteria that determine the placement of 
professional and managerial positions in the classified or 
unclassified civil service under Minnesota Statutes, section 
43A.08, subdivision 1, clause (9).  The commissioner shall 
consider criteria that recognize the unique educational 
functions of each system.  The commissioner shall report to the 
legislative commission on employee relations by December 1, 
1991, on the criteria that have been established and any 
reassignments of positions that have been required. 
    Sec. 21.  [IMPLEMENTATION PLAN.] 
    The commissioner of employee relations based on a report by 
the legislative commission on employee relations entitled "The 
Use of the Unclassified State Civil Service for Non-Managerial 
Positions" shall develop an implementation plan to transfer 
positions that do not meet the criteria in Minnesota Statutes, 
section 43A.08, subdivision 1a or 2a, to the classified 
service.  The commissioner shall consult with affected 
appointing authorities, exclusive representatives, and 
unrepresented employees in preparing the implementation plan.  
The implementation plan must include, but is not limited to, 
unclassified positions in the state board of investment and the 
higher education coordinating board.  The plan must include 
recommendations regarding the impact of the plan on incumbents 
of positions that would be transferred to the classified 
service.  The implementation plan must be submitted to the 
legislative commission on employee relations by December 15, 
1991. 
    Sec. 22.  [STUDY OF UNCLASSIFIED POSITIONS.] 
    The attorney general, with the commissioner of employee 
relations and affected unclassified employees, shall develop 
criteria that determine the placement of legal assistant 
positions in the classified or unclassified civil service under 
Minnesota Statutes, section 43A.08, subdivision 1, clause (11).  
The attorney general and the commissioner shall report to the 
legislative commission on employee relations by December 15, 
1991, on the criteria that have been established and any 
reassignment of positions that may be required. 
    Sec. 23.  [CLASSIFICATION OF POSITIONS.] 
    Subdivision 1.  [TRADE AND ECONOMIC DEVELOPMENT.] 
Notwithstanding Laws 1984, chapter 654, article 2, section 15, 
or any other law to the contrary, the positions associated with 
the following functions in the department of trade and economic 
development that do not meet the criteria set in Minnesota 
Statutes, section 43A.08, subdivision 1a or 2a, are in the 
classified service: 
    (1) coordination of economic development assistance in the 
high technology industries of medical biotechnology and software 
development; 
    (2) manufacturing growth council; 
    (3) convention facilities commission; 
    (4) recycling and environmental programs; and 
    (5) coordination of projects involving foreign business. 
    Subd. 2.  [TRADE OFFICE.] Notwithstanding Laws 1984, 
chapter 654, article 3, section 3, or any other law to the 
contrary, positions associated with the Minnesota trade office 
that do not meet the criteria set in Minnesota Statutes, section 
43A.08, subdivision 1a or 2a, are in the classified service. 
    Subd. 3.  [ADMINISTRATION.] Notwithstanding any law to the 
contrary, a position in the department of administration 
originally created for the director of the cable communications 
board must be placed in the classified service. 
    Sec. 24.  [TRANSFER OF UNCLASSIFIED POSITIONS TO THE 
CLASSIFIED SERVICE.] 
    The commissioner shall transfer unclassified positions 
described in sections 1, 7 to 19 and 23, or affected by section 
26, that do not meet the criteria set in Minnesota Statutes, 
section 43A.08, subdivision 1a or 2a, to the classified 
service.  Incumbents of positions that are transferred to the 
classified service on the effective date of this section must be 
moved to the classified service without examination and begin to 
serve a probationary period in the class. 
    Sec. 25.  [RETIREMENT PLANS.] 
    A person who on the day before the effective date of this 
article is a participant in the state unclassified employees 
retirement program, and whose position is placed in the 
classified service under this article, may elect to maintain 
membership in the unclassified program as long as the person 
holds the position or a position in a higher class in the same 
agency.  When an unclassified position that entitles a person to 
participate in the unclassified retirement program is placed in 
the classified service, the commissioner of employee relations 
shall send written notice to the incumbent of the position and 
to the director of the Minnesota state retirement system.  The 
notice must state the incumbent's option under this section.  A 
person eligible to maintain membership in the unclassified plan 
must notify the executive director of the state retirement 
system of the person's election to maintain membership in the 
unclassified plan within 60 days of the date on which the 
commissioner sends the notice stating that the position has been 
placed in the classified service.  A person who does not send 
notice is deemed to have waived the right to remain in the 
unclassified plan. 
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1990, sections 116J.615, subdivision 3; 
and 352D.02, subdivision 1b, are repealed. 

                                ARTICLE 2

                          INTEREST ARBITRATION
    Section 1.  Minnesota Statutes 1990, section 179A.05, 
subdivision 6, is amended to read: 
    Subd. 6.  [ADMINISTRATION OF ARBITRATOR ROSTER.] The board 
shall maintain a list of names of arbitrators qualified by 
experience and training in the field of labor management 
negotiations and arbitration.  Names on the list may be selected 
and removed at any time by a majority of the board.  In 
maintaining the list the board shall, to the maximum extent 
possible, select persons from varying geographical areas of the 
state.  The board shall adopt rules under chapter 14 governing 
the administration of the arbitration roster, including rules 
establishing standards for evaluating the performance of 
arbitrators.  The standards must include, at a minimum, the 
acceptability of arbitrators to the parties and the arbitrators' 
management of their cases, including their promptness in holding 
hearings and issuing awards. 
    Sec. 2.  Minnesota Statutes 1990, section 179A.16, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONSTRUCTION OF ARBITRATION PANEL.] The parties 
may select persons who are members of the arbitration roster 
maintained by the board to act as the arbitration panel in their 
dispute by mutual agreement.  In the event of a mutual agreement 
on the members of the arbitration panel, the commissioner shall 
advise the board in writing of the selection of the panel 
members, and the persons selected shall serve as the arbitration 
panel.  If the parties have not mutually agreed upon the panel 
members by the time the commissioner certifies the matter to the 
board, the board shall provide the parties to the interest 
arbitration a list of seven arbitrators.  The board shall mail 
the list of arbitrators to the parties within five working 
days.  The parties shall alternately strike names from the list 
of arbitrators until only a single arbitrator remains, unless 
the parties request and mutually agree to utilize a panel of 
three arbitrators.  If the parties are unable to agree on who 
shall strike the first name, the question must be decided by the 
flip of a coin.  The arbitrator or arbitrators remaining after 
the striking procedure constitute the arbitration panel. 
    Sec. 3.  Minnesota Statutes 1990, section 179A.16, 
subdivision 6, is amended to read: 
    Subd. 6.  [POWERS OF THE PANEL.] If the parties are unable 
to agree on a prompt, mutually acceptable date for an 
arbitration panel to meet, the panel may propose a series of 
dates on which to meet.  The parties shall alternatively strike 
dates until a single date remains.  The hearing must be held on 
that date. 
    The arbitration panel may issue subpoenas requiring the 
attendance and testimony of witnesses and the production of 
evidence which relates to any matter involved in any dispute 
before it.  The panel may administer oaths and affidavits and 
may examine witnesses. Attendance of witnesses and the 
production of evidence may be required from any place in the 
state at any hearing.  However, the panel's meeting shall be 
held in the county where the principal administrative offices of 
the employer are located, unless another location is selected by 
agreement of the parties.  In case of refusal to obey a subpoena 
issued under this section, the district court of the state for 
the county where the proceeding is pending or where the person 
who refuses to obey is found, or resides, or transacts business 
shall, on application of the panel, have jurisdiction to issue 
an order requiring the person to appear before the panel, to 
produce evidence, or to give testimony.  Failure to obey the 
order may be punished by the court as a contempt.  
    Sec. 4.  Minnesota Statutes 1990, section 179A.16, 
subdivision 7, is amended to read: 
    Subd. 7.  [DECISION BY THE PANEL.] The panel's order shall 
be issued by a majority vote of its members.  The order shall 
resolve the issues in dispute between the parties as submitted 
by the board.  For principals and assistant principals, the 
panel shall be restricted to selecting between the final offers 
of the parties on each impasse item.  For other employees, if 
the parties agree in writing, the panel shall be restricted to 
selecting between the final offers of the parties on each 
impasse item, or the final offer of one or the other parties in 
its entirety.  In considering a dispute and issuing its order, 
the panel shall consider the statutory rights and obligations of 
public employers to efficiently manage and conduct their 
operations within the legal limitations surrounding the 
financing of these operations.  The panel's decision and order 
shall be final and binding on all parties.  
    The panel shall render its order within ten 30 days from 
the date that all arbitration proceedings have 
concluded.  However, the panel must issue its order by the last 
date the employer is required by statute, charter, ordinance, or 
resolution to submit its tax levy or budget or certify its taxes 
voted to the appropriate public officer, agency, public body or 
office, or by November 1, whichever date is earlier.  This 
deadline may be extended only with the approval of the chair of 
the board.  The board shall adopt rules establishing criteria to 
be followed in determining whether an extension should be 
granted.  The panel's order shall must be for the period stated 
in the order, except that orders determining contracts for 
teacher units shall be are effective to the end of the contract 
period determined by section 179A.20.  
    The panel shall send its decision and orders to the board, 
the commissioner, the appropriate representative of the public 
employer, and the employees.  If any issues submitted to 
arbitration are settled voluntarily before the arbitrator issues 
a decision, the arbitrator shall report the settlement to the 
board and the commissioner.  
    The parties may at any time prior to or after issuance of 
an order of the arbitration panel, agree upon terms and 
conditions of employment regardless of the terms and conditions 
of employment determined by the order.  The parties shall, if so 
agreeing, execute a written contract or memorandum of contract.  

                                ARTICLE 3

                              RATIFICATIONS
    Section 1.  [RATIFICATIONS.] 
    Subdivision 1.  [MANAGERIAL PLAN.] The commissioner of 
employee relations' amendments to the plan for managerial 
employees, approved by the legislative commission on employee 
relations September 12, 1990, are ratified. 
    Subd. 2.  [COMMISSIONER'S PLAN.] The commissioner of 
employee relations' amendments to the commissioner's plan for 
unrepresented employees, approved by the legislative commission 
on employee relations September 12, 1990, are ratified. 
    Subd. 3.  [CHANCELLOR, TECHNICAL COLLEGE SYSTEM.] The 
salary for the chancellor of the technical college system, 
approved by the legislative commission on employee relations 
September 12, 1990, is ratified. 
    Subd. 4.  [CHANCELLOR, STATE UNIVERSITY SYSTEM.] The salary 
for the chancellor of the state university system, approved by 
the legislative commission on employee relations September 12, 
1990, is ratified. 
    Subd. 5.  [UNREPRESENTED EMPLOYEES, STATE UNIVERSITY 
SYSTEM.] The amendments to the plan for unrepresented employees 
of the state university system, as approved by the department of 
employee relations and by the legislative commission on employee 
relations September 12, 1990, are ratified. 
    Subd. 6.  [UNCLASSIFIED EMPLOYEES, HIGHER EDUCATION 
COORDINATING BOARD.] The amendments to the plan for unclassified 
employees of the higher education coordinating board, as 
approved by the department of employee relations and the 
legislative commission on employee relations September 12, 1990, 
are ratified. 
    Subd. 7.  [ADMINISTRATIVE LAW JUDGES, OFFICE OF 
ADMINISTRATIVE HEARINGS.] The commissioner of employee 
relations' amendments to the plan for administrative law judges 
in the office of administrative hearings, approved by the 
legislative commission on employee relations September 12, 1990, 
are ratified. 
    Subd. 8.  [AGENCY HEADS.] The salary plan for certain 
positions listed in Minnesota Statutes, section 15A.081, 
approved by the legislative commission on employee relations 
September 12, 1990, is ratified. 
    Subd. 9.  [ADMINISTRATIVE LAW JUDGES, OFFICE OF 
ADMINISTRATIVE HEARINGS.] The commissioner of employee 
relations' amendments to the plans for administrative law judges 
in the office of administrative hearings, approved by the 
legislative commission on employee relations on March 22, 1991, 
are ratified. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment. 

                                ARTICLE 4
 STATE EMPLOYEE PAY DEDUCTIONS AND DEPOSITS
    Section 1.  Minnesota Statutes 1990, section 16A.133, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PAYROLL DIRECT DEPOSIT AND DEDUCTIONS.] An 
agency head in the executive, judicial, and legislative branch 
shall, upon written request signed by an employee, directly 
deposit all or part of an employee's pay in any credit union or 
financial institution, as defined in section 47.015, designated 
by the employee.  An agency head may, upon written request of an 
employee, deduct from the pay of the employee a requested amount 
to be paid to the Minnesota benefit association, or to any 
organization contemplated by section 179A.06, of which the 
employee is a member, or to a company that has contracted to 
insure the employee for the medical costs of cancer or intensive 
care.  If an employee is a member of or has accounts with more 
than one credit union or financial institution or more than one 
organization under section 179A.06, or is insured by more than 
one company, only one credit union or financial institution may 
be paid money by direct deposit, and one credit union, one 
organization, and one company may be paid money by direct 
deposit or by payroll deduction from the employee's pay. 
    Presented to the governor May 24, 1991 
    Signed by the governor May 28, 1991, 8:40 p.m.