Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 97-S.F.No. 512
An act relating to employment; making technical and
administrative changes in the department of employee
relations; modifying provisions governing state
employment; modifying terms of certain pilot projects;
requiring a study and report; amending Minnesota
Statutes 1996, sections 13.67; 15.53, subdivision 2;
43A.04, subdivision 1; 43A.07, subdivision 5; 43A.27,
subdivision 3; and 43A.30, subdivisions 4 and 5; Laws
1993, chapter 301, section 1, subdivision 4; and Laws
1995, chapter 248, articles 12, section 2; and 13,
sections 2, subdivisions 2, 5, and 6; and 3,
subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 15; and 43A; repealing
Minnesota Statutes 1996, section 43A.182; and Laws
1995, chapter 248, article 10, section 12.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 13.67, is
amended to read:
13.67 [EMPLOYEE RELATIONS DATA.]
The following data collected, created, or maintained by the
department of employee relations are classified as nonpublic
data pursuant to section 13.02, subdivision 9:
(a) The commissioner's plan prepared by the department,
pursuant to section 3.855, which governs the compensation and
terms and conditions of employment for employees not covered by
collective bargaining agreements until the plan is submitted to
the legislative commission on employee relations;
(b) Data pertaining to grievance or interest arbitration
that has not been presented to the arbitrator or other party
during the arbitration process;
(c) Notes and preliminary drafts of reports prepared during
personnel investigations and personnel management reviews of
state departments and agencies;
(d) The managerial plan prepared by the department pursuant
to section 43A.18 that governs the compensation and terms and
conditions of employment for employees in managerial positions,
as specified in section 43A.18, subdivision 3, until the plan is
submitted to the legislative commission on employee relations;
and
(e) Claims experience and all related information received
from carriers and claims administrators participating in either
the state group insurance plan, the Minnesota employee insurance
program, the state workers' compensation program, or the public
employees insurance program as defined in chapter 43A, and
survey information collected from employees and employers
participating in these plans and programs, except when the
department determines that release of the data will not be
detrimental to the plan or program.
Sec. 2. Minnesota Statutes 1996, section 15.53,
subdivision 2, is amended to read:
Subd. 2. [PERIOD OF ASSIGNMENT.] The period of individual
assignment or detail under an interchange program shall not
exceed 24 months, nor shall any person be assigned or detailed
for more than 24 months during any 36-month period, except when
the assignment or detail is made to coincide with an
unclassified appointment under section 15.06. However, the head
of an agency may extend the period of assignment for not more
than two additional years. Details relating to any matter
covered in sections 15.51 to 15.57 may be the subject of an
agreement between the sending and receiving agencies. Elected
officials shall not be assigned from a sending agency nor
detailed to a receiving agency.
Sec. 3. [15.0594] [COMMISSIONER'S APPROVAL REQUIRED.]
No person may be employed or consultant retained by an
entity created under section 15.0593 without written approval of
the commissioner of the department of employee relations.
Sec. 4. 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, 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, chapter 210, and may order any remedial actions consistent
with law. The commissioner, at the request of an agency, shall
provide assistance in employee misconduct investigations. The
commissioner shall have the right to assess from the requesting
agency, any costs incurred while assisting the agency in the
employee misconduct investigation. Money received by the
commissioner under this paragraph is appropriated to the
commissioner for purposes of this paragraph.
(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. 5. [43A.044] [HAZARD IDENTIFICATION AND ACCIDENT
PREVENTION.]
(a) The commissioner of the department of employee
relations must operate a program of occupational hazard
identification and accident prevention for state agencies and
state employees, and shall provide the staff, equipment, and
facilities needed for the program. The program must be offered
to all state agencies through the agency safety contact or other
designee; is consultative in nature; and must assist state
agencies with the goal of providing a safe work environment,
safe work methods, and hazard identification.
(b) The commissioner must cooperate with the department of
labor and industry, department of health, and department of
administration as well as other private and public community
agencies to assist in the objective of hazard identification and
accident prevention.
Sec. 6. Minnesota Statutes 1996, section 43A.07,
subdivision 5, is amended to read:
Subd. 5. [LEAVES TO ACCEPT UNCLASSIFIED APPOINTMENTS.] An
employee who is may be granted a leave of absence from a
position in the classified service to accept a position in the
unclassified service shall retain an inactive classified service
status. Upon request, during the unclassified appointment or
within 60 days of the end of the unclassified appointment, the
employee shall be reappointed in the agency from which the
employee was granted the leave, to a classified position
comparable to that held immediately prior to being appointed to
the unclassified position.
Sec. 7. Minnesota Statutes 1996, section 43A.27,
subdivision 3, is amended to read:
Subd. 3. [RETIRED EMPLOYEES.] A person may elect to
purchase at personal expense individual and dependent hospital,
medical, and dental coverages if the person is:
(1) a retired employee of the state or an organization
listed in subdivision 2 or section 43A.24, subdivision 2, who
receives, at separation of service:
(i) is immediately eligible to receive an annuity under a
state retirement program sponsored by the state or such
organization of the state and immediately meets the age and
service requirements in section 352.115, subdivision 1; and
(ii) has five years of service or meets the service
requirement of the collective bargaining agreement or plan,
whichever is greater; or
(2) a retired employee of the state who is at least 50
years of age and has at least 15 years of state service may
elect to purchase at personal expense individual and dependent
hospital, medical, and dental coverages that are.
The commissioner shall offer at least one plan which is
actuarially equivalent to those made available through
collective bargaining agreements or plans established pursuant
to section 43A.18 to employees in positions equivalent to that
from which retired. A spouse of a deceased retired employee who
received an annuity under a state retirement program may
purchase the coverage listed in this subdivision if the spouse
was a dependent under the retired employee's coverage at the
time of the employee's death. Coverages must be coordinated
with relevant health insurance benefits provided through the
federally sponsored Medicare program. Until the retired
employee reaches age 65, the retired employee and dependents
must be pooled in the same group as active employees for
purposes of establishing premiums and coverage for hospital,
medical, and dental insurance. Coverage for retired employees
and their dependents may not discriminate on the basis of
evidence of insurability or preexisting conditions unless
identical conditions are imposed on active employees in the
group that the employee left. Appointing authorities shall
provide notice to employees no later than the effective date of
their retirement of the right to exercise the option provided in
this subdivision. The retired employee must notify the
commissioner or designee of the commissioner within 30 days
after the effective date of the retirement of intent to exercise
this option.
Sec. 8. Minnesota Statutes 1996, section 43A.30,
subdivision 4, is amended to read:
Subd. 4. [EMPLOYEE INSURANCE TRUST FUND.] The commissioner
of employee relations may direct that all or a part of the
amounts paid for life insurance, hospital, medical, and dental
benefits, and optional coverages authorized for eligible
employees and other eligible persons be deposited by the state
in an employee insurance trust fund in the state treasury, from
which the approved claims of eligibles are to be paid.
Investment income and investment losses attributable to the
investment of the fund shall be credited to the fund. There is
appropriated from the fund to the commissioner amounts needed to
pay the approved claims of eligibles, related service charges,
insurance premiums, and refunds. The commissioner shall not
market or self-insure life insurance or optional coverages. The
commissioner may market and self-insure dental and optional
coverages. Nothing in this subdivision precludes the
commissioner from determining plan design, providing
informational materials, or communicating with employees about
coverages.
Sec. 9. Minnesota Statutes 1996, section 43A.30,
subdivision 5, is amended to read:
Subd. 5. [ADMINISTRATION.] The commissioner of employee
relations may administer the employee insurance program. The
commissioner may assess agencies, and employers of persons
eligible for state-paid insurance and benefits under section
43A.24, the cost of these administrative services and include it
in the amounts billed for life insurance, hospital, medical, and
dental benefits, and optional coverages authorized. Receipts
from the assessments must be deposited in the state treasury and
credited to a special account in the employee insurance trust
fund and are appropriated to the commissioner to pay these
administrative costs.
Sec. 10. [43A.375] [DEDUCTION FOR EXPENSES; FRAUD OR
MISTAKE.]
If expenses are reimbursed to an employee by the employer
under circumstances of fraud or mistake, the expenses may be
deducted from wages earned by or due the employee.
Sec. 11. Laws 1993, chapter 301, section 1, subdivision 4,
is amended to read:
Subd. 4. [WAIVER.] (a) Upon receipt of the committee
report required by subdivision 3, each entity head shall submit
the list of recommended waivers to the commissioner of employee
relations. The commissioner shall then grant the waivers
requested by each entity, effective for the requesting entity,
for a period ending June 30, 1997, subject to the restrictions
in paragraph (b) and to revision in accordance with subdivision
5. These waivers are effective for the requesting entity, for a
period ending June 30, 1997, except the waivers granted for the
Minnesota housing finance agency shall extend to June 30, 1999.
The commissioner shall waive a rule by granting a variance under
Minnesota Statutes, section 14.05, subdivision 4.
(b) The commissioner may not grant a waiver if it would
result in the layoff of classified employees or unclassified
employees covered by a collective bargaining agreement except as
provided in a plan negotiated under Minnesota Statutes, chapter
179A, that provides options to layoff for employees who would be
affected. If a proposed waiver would violate the terms of a
collective bargaining agreement reached under Minnesota
Statutes, chapter 179A, the waiver may not be granted without
the consent of the exclusive representative that is a party to
the agreement.
Sec. 12. Laws 1995, chapter 248, article 12, section 2, is
amended to read:
Sec. 2. [TERMINATION.]
Section 1 and the civil service pilot project in the
housing finance agency as authorized by Laws 1993, chapter 301,
terminate June 30, 1997 1999, or at any earlier time by a method
agreed upon by the commissioners of employee relations and
housing finance and the affected exclusive bargaining
representative of state employees.
Sec. 13. Laws 1995, chapter 248, article 13, section 2,
subdivision 2, is amended to read:
Subd. 2. [PILOT PROJECT.] During the biennium ending June
30, 1997 2001, the governor shall designate an executive agency
that will conduct a pilot civil service project. The pilot
program must adhere to the policies expressed in subdivision 1
and in Minnesota Statutes, section 43A.01. For the purposes of
conducting the pilot project, the commissioner of the designated
agency is exempt from the provisions that relate to employment
in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter
3900, and administrative procedures and policies of the
department of employee relations. If a proposed exemption from
the provisions that relate to employment in Minnesota Statutes,
chapter 43A, Minnesota Rules, chapter 3900, and administrative
procedures and policies of the department of employee relations
would violate the terms of a collective bargaining agreement
effective under Minnesota Statutes, chapter 179A, the exemption
is not effective without the consent of the exclusive
representative that is a party to the agreement. Upon request
of the commissioner carrying out the pilot project, the
commissioner of employee relations shall provide technical
assistance in support of the pilot project. This section does
not exempt an agency from compliance with Minnesota Statutes,
sections 43A.19 and 43A.191, or from rules adopted to implement
those sections.
Sec. 14. Laws 1995, chapter 248, article 13, section 2,
subdivision 5, is amended to read:
Subd. 5. [PILOT PROJECT.] During the biennium ending June
30, 1997, the human resources innovation committee established
under Laws 1993, chapter 301, section 1, subdivision 6, 1999,
the department of employee relations in conjunction with union
representatives shall designate state job classifications to be
included in a one or more pilot project projects. Under this
pilot project: (1) resumes of applicants for positions to be
filled through a competitive open this process will be evaluated
through an objective computerized system that will identify
which applicants have the required skills; and (2) information
on applicants determined to have required skills will be
forwarded to the agency seeking to fill a vacancy, without
ranking these applicants, and without a limit on the number of
applicants that may be forwarded to the hiring agency. Laws or
rules that govern examination, ranking of eligibles, and
certification of eligibles for competitive open positions do not
apply to those job classifications included in the pilot
project. This process is in lieu of the procedures provided in
Minnesota Statutes, sections 43A.10 to 43A.13, and related rules
and procedures adopted under Minnesota Statutes, section 43A.04,
subdivision 4, except that applicants who are being referred and
who qualify for veterans preference under Minnesota Statutes,
section 43A.11, will be placed ahead of referrals who meet the
required skills of the vacant position and who do not qualify
for veterans preference. Before designating a job
classification under this subdivision, the committee department
must assure that the hiring process for those job
classifications complies with the policies in subdivision 1.
Sec. 15. Laws 1995, chapter 248, article 13, section 2,
subdivision 6, is amended to read:
Subd. 6. [EVALUATION.] The commissioner of employee
relations, in consultation with the human resources innovation
committee union representatives, shall design and implement a
system for evaluating the success of the pilot project in
subdivision 5. By October 1, 1996 1997, and October 1, 1997
1998, the commissioner must report to the legislature on the
pilot project. The report must:
(1) list job classifications subject to the each pilot
project, and the number of positions filled under in these job
classes under the pilot;
(2) evaluate the extent to which the project has been
successful in maintaining a merit-based system in the absence of
traditional civil service laws and rules;
(3) quantify time and money saved in the hiring process
under the these pilot project projects, as compared to hiring
under the traditional laws and rules;
(4) document the extent of complaints or problems arising
under the new system; and
(5) recommend any changes in laws or rules needed to make
permanent the successes of the pilot project projects.
Sec. 16. Laws 1995, chapter 248, article 13, section 3,
subdivision 2, is amended to read:
Subd. 2. [PILOT PROJECT.] During the biennium ending June
30, 1997, the department of employee relations must implement a
system of incentives including economic incentives for
unrepresented employees for or groups of unrepresented employees
in the department. The system must be approved by the
commissioner of finance before being implemented. The system
must have the following characteristics:
(1) it must provide nonmanagerial unrepresented employees
or groups of employees within the agency the possibility of
earning economic rewards by suggesting changes in operation of
the department's programs;
(2) it must provide nonmanagerial represented employees
within the agency the possibility of receiving individual or
group economic rewards, if provided in a collective bargaining
agreement, for suggesting changes in the operation of the
department's programs;
(3) it must provide groups of nonmanagerial represented
employees within the agency the possibility of receiving group
rewards in the form of training opportunities, filling of
unfilled employee complement, or other resources that benefit
overall group performance;
(4) any economic awards must be based on changes in
operations suggested by nonmanagerial employees or groups of
employees that result in objectively measurable cost savings of
at least $25,000 or significant and objectively measurable
efficiencies in services that the agency provides to its
customers or clients, without decreasing the quality of these
services;
(5) awards must be a minimum of $500 up to a maximum of
$2,500 per year to unrepresented nonmanagerial employees or
groups of employees who were instrumental in identifying and or
implementing the efficiency and cost-saving measures;
(6) an "efficiency savings account" must be created within
each fund that is used to provide money for department
services. Each account consists of money saved directly as a
result of initiatives under this section. Any awards under this
article must be paid from money in an efficiency savings
account. One-half of the money in the account may be used for
awards under this section, and the remainder must be returned to
the fund from which the money was appropriated;
(7) no award shall be given except upon approval of a team
comprised of equal numbers of management and nonmanagement
employees selected by the commissioner of employee relations
from state employees outside of the department; and
(8) the economic awards granted to unrepresented employees
must be one-time awards in the form of a lump sum award, and
must not add to the base salary of employees.
Sec. 17. [AMERICANS WITH DISABILITIES ACT COORDINATOR.]
The commissioner shall designate a state ADA coordinator
who will have primary responsibility for providing training and
technical assistance to agencies on the provisions of titles I
and II of the Americans with Disability Act, Public Law Number
101-336, and Minnesota Statutes, chapter 363. The ADA
coordinator will establish monitoring procedures and reports of
progress to the governor's office on no less than a biennial
basis.
The ADA coordinator will work with the state director of
diversity and equal opportunity on the establishment of
affirmative action goals for persons with disabilities in
accordance with Minnesota Statutes, section 43A.19, subdivision
1, paragraph (b), and the review and approval of agency
affirmative action plans consistent with Minnesota Statutes,
sections 43A.04, subdivision 3, and 43A.191, subdivision 1.
Sec. 18. [HUMAN RESOURCES SYSTEM.]
Subdivision 1. [PILOT PROJECT.] The pilot program
established in the department of human services by Laws 1994,
chapter 453, section 1, is continued and amended as described in
this section. The pilot program must adhere to the policies
expressed in subdivision 1 and in Minnesota Statutes, section
43A.01. For the purposes of conducting the expanded pilot
project, the commissioner of human services is exempt from the
provisions that relate to employment in Minnesota Statutes,
chapter 43A, Minnesota Rules, chapter 3900, and administrative
procedures and policies of the department of employee
relations. If a proposed exemption from the provisions that
relate to employment in Minnesota Statutes, chapter 43A,
Minnesota Rules, chapter 3900, and administrative procedures and
policies of the department of employee relations would violate
the terms of a collective bargaining agreement effective under
Minnesota Statutes, chapter 179A, the exemption is not effective
without the consent of the exclusive representative that is a
party to the agreement. The labor-management committee
established by Laws 1994, chapter 453, section 1, shall
continue. The committee membership may be expanded as long as
an equal number of labor and management representatives is
maintained. A proposed exemption may not be implemented without
the approval of the labor-management committee unless it affects
only managerial or other unrepresented positions. Upon request
of the commissioner of human services, and subject to the
availability of resources, the commissioner of employee
relations may provide technical assistance in support of the
pilot project and may request reimbursement for the reasonable
cost of any services provided. This section does not exempt the
department of human services from compliance with Minnesota
Statutes, sections 43A.19 and 43A.191, or from rules adopted to
implement those sections.
Subd. 2. [EVALUATION.] The department of human services
shall evaluate the pilot program. The evaluation shall include
at least the following factors:
(1) the extent to which the department of human services
has been successful in maintaining a merit-based human resources
system in the absence of the traditional civil service rules and
procedures;
(2) the extent to which the project's projected outcomes
were achieved;
(3) the satisfaction of managers, supervisors, and
exclusive representatives of employees with the changes; and
(4) the extent of complaints or problems arising under the
new system.
The department of human services must report to the
legislature by January 15, 1999, January 15, 2000, and January
15, 2001, on the progress and results of the project.
Sec. 19. [STUDY OF STATE HIRING OPTIONS.]
The commissioner of human services shall study and report
to the legislature by January 15, 1998, with recommendations to
expand employment opportunities for public assistance recipients
in state agencies and institutions of higher education. The
report may include recommendations on:
(1) giving qualified applicants who are recipients of
public assistance preference in hiring; and
(2) other recommendations developed by the commissioner in
consultation with other state agencies and institutions of
higher education.
Sec. 20. [REPEALER.]
Minnesota Statutes 1996, section 43A.182, and Laws 1995,
chapter 248, article 10, section 12, are repealed.
Presented to the governor May 5, 1997
Signed by the governor May 6, 1997, 2:35 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes