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

                            CHAPTER 79-H.F.No. 1162 
                  An act relating to state employment; making changes of 
                  a technical and housekeeping nature; amending 
                  Minnesota Statutes 1996, sections 43A.01, subdivision 
                  2; 43A.02, subdivisions 1, 14, 20, 30, and 37; 43A.04, 
                  subdivisions 1, 2, 3, and 9; 43A.05, subdivisions 1 
                  and 3; 43A.08, subdivisions 1 and 1a; 43A.13, 
                  subdivision 7; 43A.27, subdivision 1; 43A.30, 
                  subdivision 1; and 43A.36, subdivisions 1 and 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 43A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PRECEDENCE OF MERIT PRINCIPLES AND 
        NONDISCRIMINATION.] It is the policy of this state to provide 
        for equal employment opportunity consistent with chapter 363 by 
        ensuring that all personnel actions be based on the ability to 
        perform the duties and responsibilities assigned to the position 
        without regard to age, race, creed or religion, color, 
        disability, sex, national origin, marital status, status with 
        regard to public assistance, or political affiliation.  It is 
        the policy of this state to take affirmative action to eliminate 
        the underutilization of qualified members of protected groups in 
        the civil service, where such action is not in conflict with 
        other provisions of this chapter or chapter 179, in order to 
        correct imbalances and eliminate the present effects of past 
        discrimination.  
           No contract executed pursuant to chapter 179 179A shall 
        modify, waive or abridge this section and sections 43A.07 to 
        43A.13, 43A.15, and 43A.17 to 43A.21, except to the extent 
        expressly permitted in those sections.  
           Sec. 2.  Minnesota Statutes 1996, section 43A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INTERPRETATION.] Unless the language or 
        context indicates that a different meaning is intended, the 
        following terms, for the purposes of Laws 1981, this chapter 
        210, have the meanings given them in this section.  
           Sec. 3.  Minnesota Statutes 1996, section 43A.02, 
        subdivision 14, is amended to read: 
           Subd. 14.  [COMMISSIONER'S PLAN.] "Commissioner's plan" 
        means the plan required by section 3.855 regarding total 
        compensation and terms and conditions of employment, including 
        grievance administration, for employees of the executive branch 
        who are not otherwise provided for in Laws 1981, this chapter 
        210 or other law.  
           Sec. 4.  Minnesota Statutes 1996, section 43A.02, 
        subdivision 20, is amended to read: 
           Subd. 20.  [ELIGIBLE LIST.] "Eligible list" means a list of 
        candidates qualified under provisions of Laws 1981, this chapter 
        210 for employment in a specific class.  
           Sec. 5.  Minnesota Statutes 1996, section 43A.02, 
        subdivision 30, is amended to read: 
           Subd. 30.  [PERMANENT STATUS.] "Permanent status" means the 
        state or condition achieved by a tenured laborer or by an 
        employee in the classified service who has successfully 
        completed an initial probationary period or a probationary 
        period required following reinstatement or reemployment, or 
        whose probationary period is waived through specific statutory 
        direction.  
           Sec. 6.  Minnesota Statutes 1996, section 43A.02, 
        subdivision 37, is amended to read: 
           Subd. 37.  [REEMPLOYMENT LIST.] "Reemployment list" means 
        an eligible list by class of current or former permanent or 
        probationary employees laid off, demoted in lieu of layoff, or 
        separated in good standing from the class, or former permanent 
        or probationary employees of the class who are receiving 
        disability benefits under a state retirement plan and whose 
        written applications for consideration for reemployment in the 
        class have been approved by the commissioner.  
           Sec. 7.  Minnesota Statutes 1996, section 43A.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEWIDE LEADERSHIP.] (a) The 
        commissioner is the chief personnel and labor relations manager 
        of the civil service in the executive branch.  
           Whenever any power or responsibility is given to the 
        commissioner by any provision of Laws 1981, this chapter 210, 
        unless otherwise expressly provided, the power or authority 
        applies to all employees of agencies in the executive branch and 
        to employees in classified positions in the office of the 
        legislative auditor, the Minnesota state retirement system, the 
        public employees retirement association, and the teacher's 
        retirement association.  Unless otherwise provided by law, the 
        power or authority does not apply to unclassified employees in 
        the legislative and judicial branches.  
           (b) The commissioner shall operate an information system 
        from which personnel data, as defined in section 13.43, 
        concerning employees and applicants for positions in the 
        classified service can be retrieved.  
           The commissioner has access to all public and private 
        personnel data kept by appointing authorities that will aid in 
        the discharge of the commissioner's duties.  
           (c) The commissioner may consider and investigate any 
        matters concerned with the administration of provisions of Laws 
        1981, this chapter 210, and may order any remedial actions 
        consistent with law. 
           (d) The commissioner has sole authority to settle state 
        employee workers' compensation claims. 
           (e) The commissioner may assess or establish and collect 
        premiums from all state entities to cover the costs of programs 
        under sections 15.46 and 176.603. 
           Sec. 8.  Minnesota Statutes 1996, section 43A.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXECUTIVE DIRECTION.] The commissioner shall 
        direct all departmental services, appoint employees and may 
        enter into contracts to carry out the provisions of Laws 1981, 
        this chapter 210.  
           Sec. 9.  Minnesota Statutes 1996, section 43A.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RULES.] The commissioner shall adopt rules under 
        the administrative procedure act to implement the provisions of 
        this chapter that directly affect the rights of or processes 
        available to the general public.  The rules have the force and 
        effect of law and may include but are not limited to: 
           (1) the processes for determining the extent of competition 
        for filling vacancies, for recruiting applicants, for conducting 
        competitive open examinations, for ranking candidates and 
        maintaining competitive open eligible lists, and for 
        certification and appointment of eligibles from competitive open 
        eligible lists; 
           (2) the process for effecting noncompetitive and qualifying 
        appointments; 
           (3) the process for temporary designation of positions in 
        the unclassified service and for effecting appointments to the 
        unclassified service; 
           (4) a statewide affirmative action program to include 
        requirements for agency affirmative action plans, statewide 
        policies and procedures, reporting requirements, accountability 
        and responsibility of employees in the executive branch, and 
        overall objectives of the program; 
           (5) conditions under which moving and other expenses may be 
        authorized and paid prior to appointment to persons who have 
        accepted state employment; 
           (6) procedures for administration of the code of ethics for 
        employees of the executive branch; 
           (7) examination procedures for candidates with disabilities 
        as described in section 43A.10 43A.15, subdivision 8 14; and 
           (8) procedures or policies that affect the operation of or 
        participation in the public employees insurance program. 
           Sec. 10.  Minnesota Statutes 1996, section 43A.04, 
        subdivision 9, is amended to read: 
           Subd. 9.  [EXPERIMENTAL OR RESEARCH PROJECTS.] The 
        commissioner of employee relations may conduct experimental or 
        research projects designed to improve recruitment, selection, 
        referral, or appointment processes for the filling of state 
        classified positions. 
           The commissioner shall meet and confer with the affected 
        exclusive bargaining representative of state employees 
        concerning the design and implementation of experimental and 
        research projects under this subdivision. 
           Any provision in sections 43A.09 to 43A.15, associated 
        personnel rules adopted under subdivision 3, or administrative 
        procedures established under subdivision 4, is waived for the 
        purposes of these projects.  The number of appointments under 
        this subdivision may not exceed five percent of the total number 
        of appointments in the preceding fiscal year. 
           The commissioner shall report by September 1 to the 
        legislative commission joint subcommittee on employee relations 
        the results of the experimental research projects conducted in 
        the preceding fiscal year. 
           Sec. 11.  Minnesota Statutes 1996, section 43A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The commissioner through the 
        personnel bureau shall perform the duties assigned in Laws 1981, 
        this chapter 210.  The deputy for the personnel bureau shall 
        perform any duties delegated by the commissioner.  
           The commissioner's authority and responsibility shall 
        include but not be limited to maintenance of a classification 
        plan, assignment of all positions in the classified service to 
        job classes, maintenance and approval of total compensation 
        plans for all positions in the executive branch pursuant to the 
        provisions of section 43A.18 and other provisions of law; 
        preparation of examinations, rating of candidates for employment 
        and preparation of eligible lists; maintenance of employee 
        performance appraisal, training and affirmative action programs; 
        and maintenance and publication of logical career paths in the 
        classified civil service.  
           Sec. 12.  Minnesota Statutes 1996, section 43A.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMISSIONER'S PLAN.] The commissioner shall 
        periodically develop and establish pursuant to Laws 1981, this 
        chapter 210 a commissioner's plan.  The commissioner shall 
        submit the plan, before becoming effective, to the legislative 
        coordinating commission for approval.  
           Sec. 13.  Minnesota Statutes 1996, section 43A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
        positions are held by employees who are: 
           (1) chosen by election or appointed to fill an elective 
        office; 
           (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; 
           (3) deputy and assistant agency heads and one confidential 
        secretary in the agencies listed in subdivision 1a and in the 
        office of strategic and long-range planning; 
           (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; 
           (5) intermittent help employed by the commissioner of 
        public safety to assist in the issuance of vehicle licenses; 
           (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; 
           (7) employees of the Washington, D.C., office of the state 
        of Minnesota; 
           (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; 
           (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, and the board of trustees of Lola and Rudy 
        Perpich Minnesota Center for Arts Education and the Minnesota 
        state colleges and universities, 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; 
           (10) officers and enlisted persons in the national guard; 
           (11) attorneys, legal assistants, and three confidential 
        employees appointed by the attorney general or employed with the 
        attorney general's authorization; 
           (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; 
           (13) members of the state patrol; provided that selection 
        and appointment of state patrol troopers must be made in 
        accordance with applicable laws governing the classified 
        service; 
           (14) chaplains employed by the state; 
           (15) examination monitors and intermittent training 
        instructors employed by the departments of employee relations 
        and commerce and by professional examining boards and 
        intermittent staff employed by the technical colleges for the 
        administration of practical skills tests and for the staging of 
        instructional demonstrations; 
           (16) student workers; 
           (17) executive directors or executive secretaries appointed 
        by and reporting to any policy-making board or commission 
        established by statute; 
           (18) employees unclassified pursuant to other statutory 
        authority; 
           (19) intermittent help employed by the commissioner of 
        agriculture to perform duties relating to pesticides, 
        fertilizer, and seed regulation; and 
           (20) the administrators and the deputy administrators at 
        the state academies for the deaf and the blind. 
           Sec. 14.  Minnesota Statutes 1996, 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; economic security; children, families, and 
        learning; employee relations; trade and economic development; 
        finance; health; human rights; labor and industry; natural 
        resources; public safety; public service; human services; 
        revenue; transportation; and veterans affairs; the housing 
        finance and pollution control agencies; the state lottery; the 
        state board of investment; the office of administrative 
        hearings; the office of environmental assistance; the offices of 
        the attorney general, secretary of state, state auditor, and 
        state treasurer; the board of trustees of the Minnesota state 
        colleges and universities; the higher education services office; 
        the Lola and Rudy Perpich 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, the employing statutory board 
        or commission, 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. 15.  Minnesota Statutes 1996, section 43A.13, 
        subdivision 7, is amended to read: 
           Subd. 7.  [EXPANDED CERTIFICATION.] When the commissioner 
        determines that a disparity as defined in rules exists between 
        an agency's work force and its affirmative action plan approved 
        in accordance with section 43A.19, the commissioner shall ensure 
        to the extent possible that eligibles who are members of the 
        protected groups for which the disparity exists are certified 
        for appointment.  When fewer than two eligibles of each 
        protected group for which a disparity has been determined to 
        exist would be certified under subdivisions 4 and 5, the 
        commissioner shall certify two eligibles from each protected 
        group for which a disparity exists or four from each group for 
        which a disparity exists if the number of names referred has 
        been increased under subdivision 4, paragraph (b).  
        Implementation of this subdivision may not be deemed a violation 
        of other provisions of Laws 1981, this chapter 210 or chapter 
        363. 
           Sec. 16.  Minnesota Statutes 1996, section 43A.27, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] Notwithstanding any other 
        provisions of Laws 1981, this chapter 210, the persons listed in 
        subdivisions 2 and 3, and their dependents, may elect to enroll 
        at their own expense in the appropriate life insurance, 
        hospital, medical and dental benefits, and optional coverages at 
        the time, in the manner, and under conditions of eligibility the 
        commissioner prescribes and otherwise approves.  The 
        commissioner may also provide for payroll deductions to be made 
        in the same manner and under the same conditions as provided in 
        section 43A.30, subdivision 2 authorizing payroll deductions for 
        an eligible employee and the employee's dependents.  
           Sec. 17.  Minnesota Statutes 1996, section 43A.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENTS FROM AGENCY REVENUES.] Each 
        agency shall pay the amounts due for state paid life insurance 
        and hospital, medical and dental benefits coverage authorized 
        for eligible employees pursuant to Laws 1981, this chapter 210.  
           Each agency shall pay the amounts from accounts and funds 
        from which the agency receives its revenues, including 
        appropriations from the general fund and from any other fund, 
        now or hereafter existing for the payment of salaries and in the 
        same proportion as it pays therefrom the amounts of salaries.  
        In order to enable the commissioner of finance to maintain 
        proper records covering the appropriations pursuant to this 
        section, the commissioner of finance may require certifications 
        in connection with payments as the commissioner of finance deems 
        necessary from the Minnesota historical society, the University 
        of Minnesota, or any agency whose employees receive benefits 
        pursuant to Laws 1981, this chapter 210.  The accounts and funds 
        from which agencies receive appropriations under the terms of 
        this section are a source of revenue for the purposes of any 
        other law or statutory enactment.  
           Sec. 18.  Minnesota Statutes 1996, section 43A.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COOPERATION; STATE AGENCIES.] The 
        commissioner may delegate administrative functions associated 
        with the duties of the commissioner to appointing authorities 
        who have the capability to perform such functions when the 
        commissioner determines that it is in the best interests of the 
        state civil service.  The commissioner shall consult with 
        agencies and agencies shall cooperate as appropriate in 
        implementation of Laws 1981, this chapter 210.  
           The commissioner, in conjunction with appointing 
        authorities, shall analyze and assess current and future human 
        resource requirements of the civil service and coordinate 
        personnel actions throughout the civil service to meet the 
        requirements.  The commissioner shall permit appointing 
        authorities to use eligible lists in making appointments to 
        positions in the unclassified service and shall provide 
        recruiting assistance.  
           The head of each agency in the executive branch shall 
        designate an agency personnel officer.  The agency personnel 
        officer shall be accountable to the agency head for all 
        personnel functions prescribed by laws, rules, collective 
        bargaining agreements, the commissioner and the agency head.  
        Except when otherwise prescribed by the agency head in a 
        specific instance, the personnel officer shall be assumed to be 
        the authority accountable to the agency head over any other 
        officer or employee in the agency for personnel functions.  
           The head of each agency in the executive branch shall 
        designate an affirmative action officer who shall have primary 
        responsibility for the administration of the agency's 
        affirmative action plan.  The officer shall report directly to 
        the head of the agency on affirmative action matters.  
           Sec. 19.  Minnesota Statutes 1996, section 43A.36, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SERVICES AVAILABLE TO POLITICAL SUBDIVISIONS.] 
        The services and facilities of the department and its staff may 
        be made available upon request to political subdivisions of the 
        state.  Enforcement and administration of other provisions 
        of Laws 1981, this chapter 210 shall take precedence over the 
        provision of the services and facilities.  Political 
        subdivisions shall reimburse the state for the reasonable cost 
        of services and facilities. 
           Presented to the governor April 29, 1997 
           Signed by the governor May 1, 1997, 4:10 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes