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Office of the Revisor of Statutes

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

                            CHAPTER 596-S.F.No. 2858 
                  An act relating to counties; Hennepin; changing the 
                  personnel system to a human resources system; making 
                  other changes to the system; amending Minnesota 
                  Statutes 1992, sections 383B.26; 383B.27; 383B.28; 
                  383B.29; 383B.31; 383B.32, subdivisions 2, 3, and 4; 
                  383B.34, subdivision 2; 383B.37, subdivision 1; 
                  383B.38, subdivision 1; and 383B.39; repealing 
                  Minnesota Statutes 1992, sections 383B.33, subdivision 
                  1; 383B.38, subdivisions 2, 3, and 4; and 383B.40. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 383B.26, is 
        amended to read: 
           383B.26 [PERSONNEL HUMAN RESOURCES SYSTEM; PURPOSE.] 
           The purpose of sections 383B.26 to 383B.42 is to establish 
        a personnel human resources board and a personnel human 
        resources and employee relations department in the county of 
        Hennepin to promote and improve the economy and effectiveness of 
        the governmental departments under its jurisdiction by the 
        improvement of methods of personnel human resources 
        administration under the principles of a merit system of 
        personnel administration, which shall include a uniform system 
        of job classifications, uniform procedures and standards for 
        hiring, promotion and compensation administration. 
           Sec. 2.  Minnesota Statutes 1992, section 383B.27, is 
        amended to read: 
           383B.27 [DEFINITION OF TERMS.] 
           Subdivision 1.  For the purposes of sections 383B.26 to 
        383B.42 and rules promulgated under them, unless the context 
        clearly indicates that a different meaning is intended, the 
        terms defined in this section have the meanings given them. 
           Subd. 2.  "Board" means the county personnel human 
        resources board. 
           Subd. 3.  "Member" means a member of the county personnel 
        human resources board. 
           Subd. 4.  "Director" means the director of the department 
        of personnel human resources and employee relations. 
           Subd. 5.  "Personnel Human resources department" means 
        the personnel human resources director and the director's 
        employees engaged in the administration of sections 383B.26 to 
        383B.42.  
           Subd. 6.  "County board" means the board of Hennepin county 
        commissioners. 
           Subd. 7.  "Appointing authority" means an elected official, 
        the head of a bureau, department, division, board, commission, 
        person or group of persons who have the power by law, by 
        resolution of the county board or by lawfully delegated 
        authority to make appointments to positions in the county 
        service within the scope of sections 383B.26 to 383B.42. 
           Subd. 8.  "Classified service" means the service which 
        includes all positions except those in the unclassified service 
        under sections 383B.26 to 383B.42.  
           Subd. 9.  "Position" means a group of current duties and 
        responsibilities assigned or delegated by a supervisor an 
        appointing authority. 
           Subd. 10.  "Class" means one or more positions sufficiently 
        similar with respect to duties and responsibilities that the 
        same descriptive title can be used with clarity to designate 
        each position; that similar general qualifications are needed 
        for the performance of the duties; that comparable selection 
        procedures may be used to recruit employees; and that the same 
        schedule of compensation shall be applied to all positions. 
           Subd. 11.  "Allocation" means the assignment of an 
        individual position to a class on the basis of the kind, 
        difficulty and responsibility of the work performed in the 
        position. 
           Subd. 12.  "Reallocation" means a change in allocation of 
        an individual position by raising it to a higher class, reducing 
        it to a lower class, or moving it to another class at the same 
        level, on the basis of significant changes in the kind, 
        difficulty or responsibility of the work performed in such 
        position. 
           Subd. 13.  "Classification" means the grouping of positions 
        into classes with regard to duties and responsibilities. 
           Subd. 14.  "Eligible" means the status of any person whose 
        name is on the layoff, reinstatement, promotional, 
        intern/trainee or original entrance open competitive list for a 
        given class. 
           Subd. 15.  "Permanent employee" means an employee in the 
        classified service who has satisfactorily completed a 
        probationary period. 
           Subd. 16.  "Probationary period" means that part of the 
        examining process following certification and appointment from a 
        list of certified candidates, to enable the appointing authority 
        to determine whether employees are fit and suitable for the 
        position to which they have been appointed, transferred, or 
        promoted.  The appointing authority may discharge a newly 
        appointed employee during the probationary period without 
        specifying cause or granting a hearing, except as provided by 
        section 197.46.  The appointing authority may, during the 
        probationary period, demote an employee appointed to a position 
        as a result of a promotion without specifying cause or granting 
        a hearing, except as provided by section 197.46.  The employee 
        so demoted shall be returned to a position in the class 
        previously held by the affected employee.  The appointing 
        authority may, during the probationary period, return a 
        transferred employee back to a position in the classification 
        and organizational unit the employee previously held without 
        specifying cause or granting a hearing, except as provided by 
        section 197.46.  When an employee has been transferred from one 
        department to another and upon the request of the new appointing 
        authority the employee may be required to serve a probationary 
        period. 
           Subd. 17.  "Classification plan" means a list of the 
        classes of positions in the classified service by their official 
        title. 
           Subd. 18.  "Unclassified service" means those positions 
        which are exempted from the jurisdiction of the personnel human 
        resources board unless otherwise provided by sections 383B.26 to 
        383B.42. 
           Subd. 19.  "Transfer" means a change by an employee from a 
        position in the same class to a different department, agency or 
        organizational unit or a change from a position in one class to 
        a position in another class of comparable level in another 
        department or in the same department. 
           Subd. 20. "Reassignment" means a change by an employee from 
        one position to another position in the same class in the same 
        organizational unit. 
           Sec. 3.  Minnesota Statutes 1992, section 383B.28, is 
        amended to read: 
           383B.28 [PERSONNEL HUMAN RESOURCES BOARD.] 
           Subdivision 1.  [ESTABLISHMENT.] The Hennepin county 
        personnel human resources board and personnel human resources 
        and employee relations department are created. 
           Subd. 2.  [APPOINTMENT; TERMS.] (a) The county board shall 
        by majority vote appoint seven persons to serve for four-year 
        terms.  Terms of office of persons who are members of the 
        personnel board as of August 11, 1980 shall continue in 
        accordance with the terms of their original appointment.  As the 
        term of each member expires, the board of county commissioners 
        shall by majority vote fill the vacancy for a term of four years.
           (b) The expiration date of all expiring terms shall be 
        January 2. 
           (c) Any vacancies shall be filled by majority vote of the 
        county board for the unexpired term. 
           (d) Each member shall take an oath of office before 
        assuming the duties of office. 
           (e) Each member shall hold office until a successor has 
        been appointed and qualified. 
           (f) No person shall be appointed or be a member of the 
        board while holding any public office or having filed as a 
        candidate for any office. 
           (g) No person shall be appointed or be a member of the 
        board while holding or within one year of holding employment 
        with Hennepin county or a position in a political party, except 
        as a political party delegate. 
           (h) Each member of the board shall be a resident of the 
        county and in the event the member becomes a nonresident, the 
        member thereby forfeits the office. 
           (i) A board member may be removed from office by the county 
        board for cause, after a copy of the charges has first been 
        given to the member and opportunity of being publicly heard 
        before the county board, upon not less than ten days written 
        notice.  A majority vote of the county board shall be required 
        for removal. 
           Subd. 3.  [COMPENSATION.] Compensation for members of 
        the personnel human resources board shall be set by the county 
        board.  Members of the board shall be compensated at the rate 
        not to exceed $50 per day spent on board meetings and personnel 
        activities when authorized by the board to represent the board.  
        Expenses shall be allowed in the same manner and amount as 
        received by county employees. 
           Subd. 4.  [ORGANIZATION.] The board shall organize by 
        electing one of its members as chair and one as vice-chair.  The 
        director shall serve as secretary. 
           Subd. 5.  [MEETINGS.] The board shall maintain records and 
        hold public meetings as required for the discharge of its duties.
           Sec. 4.  Minnesota Statutes 1992, section 383B.29, is 
        amended to read: 
           383B.29 [DUTIES OF THE PERSONNEL HUMAN RESOURCES BOARD.] 
           Subdivision 1.  [BOARD PROCEEDINGS.] When any member of the 
        board is not present at the time a matter is submitted to the 
        board such matter shall be deemed submitted to each member of 
        the board with like effect as though each member of the board 
        had been present at the time of submission of such matter.  
        Whenever during the consideration of a matter which is before 
        the board, there is a change in the personnel of the board, the 
        matter shall be deemed submitted to the new member, or members, 
        as though said new member, or members, had been a member of the 
        board at the time of the submission of the matter. 
           No meetings of the board shall be held unless at least four 
        members are present.  A majority vote of all members shall 
        constitute the decision of the board.  The board shall keep 
        records and minutes of its business and official actions which 
        shall be open to public inspection subject to such reasonable 
        rules as to time and place of inspection as the board may 
        establish. 
           Subd. 2.  [DUTIES.] The board shall: 
           (a) Establish rules for the classified service with the 
        assistance of the director.  All rules and amendments proposed 
        by the board shall be subject to public hearing upon prior 
        notice to department heads, employees, affected labor 
        organizations, and the public, as the board may, by rule 
        prescribe.  The rules as approved by the majority vote of the 
        board shall be submitted to the county board for approval or 
        rejection.  When approved, by majority vote and in the form of a 
        written resolution, the rules shall have the force and effect of 
        law.  The rules may be amended and repealed with the consent of 
        the county board in the same manner as provided for original 
        adoption.  The rules shall provide for: 
           (1) the rejection of otherwise eligible candidates 
        applicants/candidates who fail to comply with the reasonable 
        requirements of the director.; 
           (2) examinations which shall be competitive and 
        standardized and which may consist of any one or a combination 
        of the following:  written or oral tests of the subjective or 
        objective type, physical tests, practical or demonstration 
        tests, or evaluation of past training and experience.  Oral 
        tests, either of the question and answer type or the interview 
        type may be used to test the candidates.; 
           (3) the creation of eligible lists upon which shall be 
        entered the names of successful candidates in the order of their 
        rank in the examination.; 
           (4) the appointment of eligible candidates who have 
        qualified through the examination process, or through a 
        qualifying selection process pursuant to section 383B.31, clause 
        (h), if the vacancy is not filled by recall from the layoff 
        list, demotion, transfer, or reinstatement.  The seven 20 
        persons receiving the highest examination scores when available 
        shall be referred to department heads when a vacancy occurs, 
        with waiver in extreme or unique conditions subject to 
        six-sevenths approval of the board.; 
           (5) if two vacancies are to be filled by referral from an 
        examination eligible list, the names of two additional 
        candidates, when available, shall be certified and interviewed.  
        If the total number of vacancies is greater than two, nine names 
        plus two additional names for each vacancy over two will be 
        certified and interviewed from the examination eligible list. if 
        more than one vacancy is to be filled, additional names may be 
        added to the certification list in accordance with the rules 
        adopted under this subdivision; 
           (6) a period of probation during which period the 
        probationer may be discharged or demoted, without right of 
        appeal.  The period of probation shall not exceed six months 
        unless changed by six-sevenths approval of the board due to 
        extreme or unique conditions.; 
           (7) seasonal, provisional, temporary and emergency 
        appointments.  The appointments, except seasonal appointments, 
        shall not exceed six calendar months in any 12-month 
        period.  Seasonal appointments shall not exceed nine calendar 
        months in any 12-month period; 
           (8) transfers from other merit systems public employers or 
        within county service; and reinstatement of persons who without 
        fault or delinquency on their part are separated from the 
        service or demoted.; 
           (9) promotion based upon competitive examinations and upon 
        promotional ratings.  Whenever practicable vacancies shall be 
        filled by promotion.; 
           (10) suspensions without pay for no longer than 20 working 
        days for disciplinary purposes; for leaves of absence with or 
        without pay; for layoffs; for hours of employment; for vacations 
        and sick leave; severance pay, and other benefits and emoluments 
        as may improve the public service.; 
           (11) discharge or demotion of a permanent employee only 
        when the person has been presented with written charges and has 
        been allowed a hearing before the board pursuant to section 
        383B.38.; and 
           (12) the establishment of reasonable fees, not to exceed 50 
        percent of the actual cost, to be charged for the furnishing of 
        a copy of the record, including a transcript of any testimony, 
        of any hearing held before the board under sections 383B.26 to 
        383B.42, when the hearing is appealable to the district court. 
           (b) Provide a compensation plan for county employees not 
        represented by an exclusive bargaining representative to be 
        presented to the county board for approval. 
           (c) Make investigations either on petition of a citizen or 
        of its own motion concerning the enforcement and effect of 
        sections 383B.26 to 383B.42, and the rules thereunder. 
           (d) Hear and decide appeals within the jurisdiction of the 
        board, if there has been a preliminary showing to the board 
        attorney that a rule violation has occurred.  Any such board 
        attorney ruling may be appealed to the board.  
           (e) Make an annual report to the county board on the 
        activities of the personnel department. 
           Subd. 3.  [HEARING OFFICERS.] The board, with the 
        assistance of the director, shall utilize and prescribe the 
        duties of hearing officers, or contract with the office of 
        hearing examiners pursuant to section 14.55.  When it is 
        determined that a hearing be held which requires a hearing 
        officer, the director will first ascertain the availability and 
        timeliness of scheduling the hearing through the office of 
        hearing examiners pursuant to section 15.052, subdivision 8 
        14.55.  If it is determined that a prompt hearing is not readily 
        available through the office of hearing examiners, the board, 
        with the assistance of the director, may then utilize an 
        impartial hearing officer. 
           Sec. 5.  Minnesota Statutes 1992, section 383B.31, is 
        amended to read: 
           383B.31 [DUTIES OF THE DIRECTOR.] 
           The director as administrator of the personnel human 
        resources and employee relations department shall cooperate with 
        and assist department heads and elected officials in providing 
        an effective personnel human resources program.  The director 
        shall direct and supervise all of the personnel human resources 
        and employee relations department's administrative and technical 
        activities in addition to the duties imposed on the director in 
        sections 383B.26 to 383B.42.  The director shall: 
           (a) Attend the meetings of the board, act as its secretary 
        and maintain its official records. 
           (b) Appoint the employees of the personnel human resources 
        and employee relations department in accordance with and subject 
        to the provisions of sections 383B.26 to 383B.42. 
           (c) Recommend rules and amendments to rules for the 
        administration of sections 383B.26 to 383B.42. 
           (d) Prepare, recommend and maintain a classification plan 
        which shall group all positions in the classified service into 
        classes, based on their duties and responsibilities.  The 
        classification plan shall identify for each class a title, a 
        statement of duties, authority and responsibilities and 
        qualifications necessary for the satisfactory performance of the 
        duties of the position.  The classification plan shall be 
        effective upon approval by the board and the county board.  
        Periodic job audits shall be made of positions for the purpose 
        of keeping the classification plan current with changes in work 
        assignments. 
           (e) Prepare a compensation plan for the classified service. 
        Compensation plans when approved by majority vote of the board 
        shall be recommended to the county board who may approve or 
        reject such plans or portions thereof. 
           (f) Establish programs for the training and education of 
        employees to improve the quality of services rendered. 
           (g) Except as provided in clauses (h) and (i), develop and 
        hold competitive examinations to determine the qualifications of 
        persons seeking employment in any class and to establish lists 
        of those passing such examinations. 
           (h) Develop a procedure and define the criteria for the 
        selection and referral of qualified applicants to fill positions 
        in routine, service classifications involving unskilled tasks or 
        in classifications which require state licensure or 
        certification to engage in the activity.  The classifications 
        shall be authorized by the board and county board.  Applicants 
        to fill vacancies in the classifications shall be exempt from 
        ranking and certification provided for in section 383B.29, 
        subdivision 2, clauses (a)(3), (4) and (5).  The director shall 
        refer all qualified applicants to the appointing authority 
        having vacancies in the appropriate classifications. 
           (i) Establish alternative selection procedures to measure 
        the ability of persons whose handicaps are so severe that the 
        usual selection process cannot adequately predict job 
        performance.  Alternative selection procedures may include an 
        on-the-job trial period not to exceed 640 hours to be paid or 
        not by mutual agreement between the person applying for the 
        position and the director.  During the trial period, the 
        appointing authority will evaluate the applicant's ability to 
        perform the work required by the specification for the 
        classification.  After evaluation, the appointing authority and 
        the director must verify and attest that the applicant, except 
        for compliance with the standard selection process, is able to 
        perform the work required for the position.  If the appointing 
        authority and the director determine that the applicant is 
        qualified to perform the work required, the director shall 
        certify the name of the applicant to the appointing authority.  
        The probationary period for the job class shall commence at the 
        date of the hiring of the applicant following certification.  
        Alternative procedures established by the director for the 
        administration of this provision must be approved by the board. 
           (j) When a vacancy is to be filled, to certify to the 
        appointing authority upon requisition, the names of the persons 
        highest on the appropriate layoff list for the class.  If there 
        is no layoff list, the director shall certify those on the 
        appropriate eligible list for the class.  If there is no 
        eligible list, the director may authorize temporary appointment 
        pending establishment of an eligible list for the class. 
           (k) Maintain records necessary for the proper 
        administration of sections 383B.26 to 383B.42. 
           (l) Provide a system for checking payrolls and accounts for 
        the payment of compensation to employees in the classified and 
        unclassified service so as to enable the director, upon evidence 
        thereof, to certify or cause to be certified the persons whose 
        names appear thereon have been employed or on authorized leave 
        before payment may be lawfully made to such employees. 
           (m) Make investigations concerning the administration of 
        sections 383B.26 to 383B.42 and rules made thereunder. 
           (n) Make investigations and reports required by the board 
        or the county board and report thereon. 
           (o) Make an annual report to the county board and the human 
        resources board on the activities of the human resources 
        department. 
           Sec. 6.  Minnesota Statutes 1992, section 383B.32, 
        subdivision 2, is amended to read: 
           Subd. 2.  [UNCLASSIFIED SERVICE.] The unclassified service 
        comprises: 
           (a) Officers chosen by election or appointment to fill an 
        elective office. 
           (b) Members of boards and commissions appointed by the 
        county board. 
           (c) Physicians, medical residents, interns, and students in 
        training. 
           (d) Nonsalaried attending medical staff. 
           (e) Special deputies serving without pay. 
           (f) Seasonal, temporary, provisional, intermittent, and 
        emergency positions. 
           (g) Positions funded by specific governmental or 
        nongovernmental grants of intermittent or limited funding 
        duration. 
           (h) The head or principal administrative officer of a 
        bureau or department appointed pursuant to sections 383B.101 to 
        383B.103; or appointed by the county board; or appointed for a 
        term pursuant to statute.  Notwithstanding any contrary 
        provision of other law, any person coming within this provision, 
        who, on August 11, 1980, is in the classified service, shall 
        remain in the classified service until vacating the position.  
        Thereafter, any appointment hereunder shall be in the 
        unclassified service. 
           (i) Chief deputy or principal assistant and secretary for 
        each elected official. 
           (j) Director of court services and chief municipal court 
        probation officer. 
           (k) Examiner of titles and deputy examiners. 
           (l) (k) Chief criminal deputy sheriff, a chief civil deputy 
        sheriff, and a chief administrative deputy sheriff. 
           (m) (l) Public defender. 
           (n) (m) Administrative assistant to the district court 
        administrator and court administrator of probate court. 
           (o) Court reporters and referees. 
           (p) (n) Temporary judicial appointments performing a 
        special function. 
           (q) (o) County medical examiner. 
           (r) Superintendent of the adult corrections facility. 
           (s) (p) Office staff appointed by the county administrator 
        pursuant to sections 383B.101 to 383B.103. 
           (t) (q) County administrator. 
           Sec. 7.  Minnesota Statutes 1992, section 383B.32, 
        subdivision 3, is amended to read: 
           Subd. 3.  [UNCLASSIFIED SERVICE, COMPENSATION.] The 
        director shall establish a compensation plan in accordance with 
        section 383B.31, clause (e) for those employees in the 
        unclassified service identified in subdivision 2, clauses (c), 
        (d), (f), (h), (i), (j), (k), (l), (m), (n), (o), (r) and 
        (s) (p). 
           Sec. 8.  Minnesota Statutes 1992, section 383B.32, 
        subdivision 4, is amended to read: 
           Subd. 4.  [UNCLASSIFIED SERVICE, TENURE, BENEFITS.] The 
        positions in the unclassified service enumerated in subdivision 
        2, clauses (c), (d), (h), (i), (j), (k), (l), (m), (n), (o), 
        (q), (r) and (s) (p) shall not have permanent tenure but shall 
        have all other benefits provided for in sections 383B.26 to 
        383B.42.  The term of office of any position established by 
        another statute shall be as provided in it.  
           Sec. 9.  Minnesota Statutes 1992, section 383B.34, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALLOCATIONS.] The director shall allocate 
        positions in the classified service to one of the classes within 
        the classification plan. 
           (a) When a position is established, the appointing 
        authority shall notify the director who shall allocate that 
        position to a class which will become effective immediately.  
        The appointing authority may request reconsideration from the 
        director in accordance with the rules of the board.  The 
        director shall notify the appointing authority of any final 
        action. 
           (b) Whenever a position appears to be improperly allocated, 
        the director shall, with or without the written request of a 
        permanent employee or an appointing authority, investigate the 
        position.  Following that investigation the director may either 
        reallocate the position or deny the request for reallocation.  
        Notice of the action shall be given to the appointing authority 
        and the affected employee.  Unless otherwise provided in the 
        notice, the decision of the director shall be immediately 
        effective.  The appointing authority or the affected employee 
        may file a request for reconsideration with the director in 
        accordance with the rules of the board.  In all cases the burden 
        of proof shall be upon the person requesting the reallocation. 
           (c) Except as provided the incumbent of a position which 
        has been reallocated shall continue in the position only if the 
        incumbent is eligible for and actually appointed to the position 
        of the new class in accordance with the rules of the board 
        governing promotion, transfers and demotion.  If the incumbent 
        is ineligible to continue in the position and the incumbent is 
        not transferred, promoted or demoted, the layoff provisions of 
        sections 383B.26 to 383B.42 shall apply.  Personnel changes 
        required by the reallocation of positions shall be completed in 
        accordance with the rules of the board.  Any permanent or 
        probationary employee whose position is reallocated may compete, 
        if qualified as defined in the minimum qualifications for the 
        class specification, in an examination held to fill the 
        reallocated position as provided in the rules of the board and 
        shall be considered for appointment if the employee passes the 
        examination, regardless of ranking.  
           (d) When a position is reallocated to a class in a lower 
        salary range, the director may give consideration to the 
        employee's service, qualifications, or other considerations in 
        determining whether the employee shall continue at the same rate 
        of pay.  Thereafter, as long as the employee remains in the same 
        position, no salary increase shall be granted until the salary 
        range of the class exceeds the employee's present salary. 
           (e) The board shall review an allocation upon the written 
        request of the appointing authority or affected employee on the 
        grounds that the action of the director was not in accordance 
        with sections 383B.26 to 383B.42. 
           The director shall submit the record upon which the action 
        was taken.  Thereafter the board may sustain, reverse, or modify 
        the action of the director, or request further evidence from the 
        parties.  The appointing authority, subject to county board 
        approval, or any employee may petition the district court for a 
        review and determination of any alleged arbitrary or capricious 
        action on the part of the personnel human resources board 
        involving allocation. 
           Sec. 10.  Minnesota Statutes 1992, section 383B.37, 
        subdivision 1, is amended to read: 
           Subdivision 1.  No persons shall interfere with the rights 
        of any person in the examination process, or falsely mark, 
        grade, or report the examination or standing of any person 
        examined or aid in so doing, or furnish to any person, except in 
        answer to inquiries of the personnel human resources board, any 
        information for the purpose of changing the rating of any 
        person.  No applicant or employee shall falsify an application 
        or record for the purpose of improving prospects for 
        employment.  No person shall by means of threats or coercion 
        induce or attempt to induce any person holding a position in the 
        classified service to resign.  A violation of this subdivision 
        is cause for dismissal, other discipline, or disqualification 
        from the classified service of the county.  In addition to other 
        legal remedies, violations may be enjoined. 
           Sec. 11.  Minnesota Statutes 1992, section 383B.38, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SEPARATION.] No permanent employee in the 
        classified service shall be suspended, demoted, or discharged 
        except for just cause. 
           In case of any action under this section, the employee 
        shall, before the action is taken, be furnished with a written 
        statement, setting forth the reasons for the disciplinary 
        action.  The employee shall be permitted five work days' time to 
        reply in writing or to meet with the appointing authority 
        department head or designee.  A copy of the statement charging 
        the employee shall be filed with the director along with the 
        employee's reply, if any. 
           Subd. 1a.  [APPEAL.] (a) Any permanent employee in the 
        classified service who is discharged, demoted or suspended 
        pursuant to rules promulgated hereunder, shall be notified by 
        the effective date of the action of the right to appeal as 
        provided for by the rules to the board chief administrative law 
        judge of the office of administrative hearings.  Action of 
        the appointing authority department head shall be final if no 
        written notice of appeal is made to filed with the board chief 
        administrative law judge of the office of administrative 
        hearings and served upon the director and the department head 
        within 30 14 calendar days after the effective date of the 
        action. 
           (b) A permanent employee who elects to challenge a 
        discharge, demotion, or suspension through a grievance procedure 
        under a collective bargaining agreement under sections 179.35 to 
        179.39 or 179A.20 and 179A.21, may not also challenge the same 
        action through an appeal to the chief administrative law judge 
        of the office of administrative hearings.  Except as provided by 
        section 197.46, a permanent employee may challenge a discharge 
        or demotion through either a grievance procedure under a 
        collective bargaining agreement, or an appeal to the chief 
        administrative law judge of the office of administrative 
        hearings, but not through both procedures. 
           (c) Within ten days of receipt of the employee's written 
        notice of appeal, the chief administrative law judge shall 
        assign an administrative law judge to hear the appeal.  The 
        employee or department head or their attorney may, within ten 
        days after receipt of the notice of assignment, make and serve 
        on the other party and file with the office of administrative 
        hearings a notice to remove as provided in Rule 63.03 of the 
        Rules of Civil Procedure.  Upon the filing of a notice to 
        remove, the chief administrative law judge shall assign another 
        administrative law judge to hear the appeal. 
           (d) The hearing shall be conducted under the contested case 
        provisions of chapter 14 and the procedural rules adopted by the 
        chief administrative law judge, except that Minnesota Rules, 
        part 1400.6700, subparts 2 and 3, do not apply and discovery is 
        limited to the exchange of relevant documentation, witness 
        lists, and proposed exhibits. 
           (e) If the administrative law judge finds, based on the 
        record, that the action appealed was not taken by the department 
        head for just cause, the employee shall be reinstated to the 
        position, or an equal position within the same department, 
        without loss of pay.  If the administrative law judge finds that 
        just cause exists for the disciplinary action, it shall affirm 
        or uphold the action of the department head, or, if the employee 
        has asserted and the hearing record establishes extenuating 
        circumstances, the administrative law judge may reinstate the 
        employee, with full, partial, or no pay, or may modify the 
        department head's action by substituting a lesser disciplinary 
        action.  The administrative law judge's order is the final 
        decision.  The administrative law judge's order may be appealed 
        according to sections 14.63 to 14.68 by the employee, or by the 
        department head upon approval of the county board.  Settlement 
        of the entire dispute by mutual agreement is encouraged at any 
        stage of the proceedings.  Any settlement agreement is final and 
        binding when agreed to by all parties.  If an appeal to the 
        office of administrative hearings has been made, the settlement 
        agreement shall be submitted to the administrative law judge.  
        Except as provided in collective bargaining agreements, the 
        operating department shall bear the costs of the administrative 
        law judge for hearings provided for in this section. 
           Sec. 12.  Minnesota Statutes 1992, section 383B.39, is 
        amended to read: 
           383B.39 [VETERANS TO BE GIVEN PREFERENTIAL RATING.] 
           In all examinations veteran's preference shall be granted 
        to every person who is a veteran as defined in Minnesota 
        Statutes 1961, section 197.45 197.447.  The provisions of 
        section 383B.40 shall apply to all veterans. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1992, sections 383B.33, subdivision 1; 
        383B.38, subdivisions 2, 3, and 4; and 383B.40, are repealed. 
           Presented to the governor May 5, 1994 
           Signed by the governor May 6, 1994, 11:55 a.m.