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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 207-S.F.No. 2703 
                  An act relating to state employment; modifying state 
                  hiring process provisions; adding, modifying, and 
                  eliminating definitions; making technical changes; 
                  requiring a study and report on the impacts of the 
                  political subdivision compensation limit; amending 
                  Minnesota Statutes 2002, sections 43A.02, subdivisions 
                  4, 6, 11, 26, 32, 34, by adding subdivisions; 43A.04, 
                  subdivisions 3, 4; 43A.05, subdivision 1; 43A.10; 
                  43A.11, subdivisions 5, 7, 8, 9; 43A.15, subdivisions 
                  1, 2, 4, 7, 10, 15; 43A.16, subdivision 1; 43A.191, 
                  subdivision 3; 43A.36, subdivision 1; 43A.39, 
                  subdivision 1; 197.455; Minnesota Statutes 2003 
                  Supplement, section 43A.15, subdivision 14; proposing 
                  coding for new law in Minnesota Statutes, chapter 43A; 
                  repealing Minnesota Statutes 2002, sections 43A.02, 
                  subdivisions 7, 8, 15, 16, 19, 20, 37; 43A.11, 
                  subdivisions 3, 4; 43A.12; 43A.13, subdivisions 1, 2, 
                  3, 4, 5, 6, 8; 43A.15, subdivisions 8, 9, 11; 
                  Minnesota Statutes 2003 Supplement, section 43A.13, 
                  subdivision 7; Minnesota Rules, parts 3900.3300; 
                  3900.6100; 3900.6300; 3900.6400; 3900.6500; 3900.6600; 
                  3900.7100; 3900.7200; 3900.7300; 3900.7400; 3900.8500; 
                  3900.8600; 3900.8800. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPLICANT.] "Applicant" means a person who 
        has completed a state application for employment and has 
        submitted it to the Department of Employee Relations or other 
        appointing authority who has been delegated authority to recruit 
        and examine individuals for state jobs satisfied the minimum 
        requirements for application established by the commissioner.  
           Sec. 2.  Minnesota Statutes 2002, section 43A.02, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [APPLICANT POOL.] "Applicant pool" means those 
        applicants who satisfy any limits on consideration for the 
        position under section 43A.10, subdivision 6a, and who have been 
        determined to meet the minimum qualifications for a vacant 
        position. 
           Sec. 3.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [APPOINTMENT.] "Appointment" means the act of 
        filling a vacancy by placement of a person in a civil service 
        position through selection from an eligible list a finalist pool 
        or a noncompetitive or qualifying process including transfer, 
        demotion or reinstatement.  
           Sec. 4.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 11, is amended to read: 
           Subd. 11.  [CLASS.] "Class" means one or more positions 
        sufficiently similar with respect to duties and responsibilities 
        that the same descriptive title may be used with clarity to 
        designate each position allocated to the class and that the same 
        general qualifications are needed for performance of the duties 
        of the class, and that the same schedule of pay can be applied 
        with equity to all positions in the class under the same or 
        substantially the same employment conditions. 
           Sec. 5.  Minnesota Statutes 2002, section 43A.02, is 
        amended by adding a subdivision to read: 
           Subd. 22b.  [FINALIST POOL.] "Finalist pool" means those 
        members of the applicant pool who have been determined to best 
        meet all the qualifications for a vacant position and who may be 
        legally appointed to the position. 
           Sec. 6.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 26, is amended to read: 
           Subd. 26.  [LAYOFF LIST.] "Layoff list" means an eligible a 
        list by class of former permanent or probationary employees of a 
        job class who have been terminated from positions in the class 
        because of a shortage of funds or curtailment of service or for 
        any other reason beyond their control not reflecting discredit 
        on the employee are eligible to be recalled to that class under 
        the provisions of a collective bargaining agreement or plan 
        established under section 43A.18.  
           Sec. 7.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 32, is amended to read: 
           Subd. 32.  [PROBATIONARY PERIOD.] "Probationary period"," 
        part of the examination selection process, means a working 
        period following unlimited appointment to a position in the 
        classified service, during which the employee is required to 
        demonstrate ability to perform the duties and fulfill the 
        responsibilities of the position.  
           Sec. 8.  Minnesota Statutes 2002, section 43A.02, 
        subdivision 34, is amended to read: 
           Subd. 34.  [QUALIFYING APPOINTMENT.] "Qualifying 
        appointment" means the selection, from other than an eligible 
        list a finalist pool, of a candidate an applicant who has 
        demonstrated through an examination a selection process that the 
        candidate applicant meets minimum job-related requirements.  
           Sec. 9.  Minnesota Statutes 2002, 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 selection procedures and for making appointments 
        of individuals who are not employees of the civil service; 
           (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.15, subdivision 14; and 
           (8) procedures or policies that affect the operation of or 
        participation in the public employees insurance program. 
           Sec. 10.  Minnesota Statutes 2002, section 43A.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADMINISTRATIVE PROCEDURES.] The commissioner 
        shall develop administrative procedures, which are not subject 
        to the rulemaking provisions of the Administrative Procedure 
        Act, to effect provisions of chapter 43A which do not directly 
        affect the rights of or processes available to the general 
        public.  The commissioner may also adopt administrative 
        procedures, not subject to the Administrative Procedure Act, 
        which concern topics affecting the general public if those 
        procedures concern only the internal management of the 
        department or other agencies and if those elements of the topics 
        which affect the general public are the subject of department 
        rules.  
           Administrative procedures shall be reproduced and made 
        available for comment to agencies, employees, and appropriate 
        exclusive representatives certified pursuant to sections 179A.01 
        to 179A.25, for at least 15 days prior to implementation and 
        shall include but are not limited to: 
           (a) maintenance and administration of a plan of 
        classification for all positions in the classified service and 
        for comparisons of unclassified positions with positions in the 
        classified service; 
           (b) procedures for administration of collective bargaining 
        agreements and plans established pursuant to section 43A.18 
        concerning total compensation and the terms and conditions of 
        employment for employees; 
           (c) procedures for effecting all personnel actions internal 
        to the state service such as processes and requirements for 
        agencies to publicize job openings and consider applicants who 
        are referred or nominate themselves, conduct of competitive 
        promotional examinations, ranking and certification of selection 
        procedures limited to employees for promotion, noncompetitive 
        and qualifying appointments of employees and leaves of absence; 
           (d) maintenance and administration of employee performance 
        appraisal, training and other programs; and 
           (e) procedures for pilots of the reengineered employee 
        selection process.  Employment provisions of this chapter, 
        associated personnel rules adopted under subdivision 3, and 
        administrative procedures established under clauses (a) and (c) 
        may be waived for the purposes of these pilots.  The pilots may 
        affect the rights of and processes available to members of the 
        general public seeking employment in the classified service.  
        The commissioner will provide public notice of any pilot 
        directly affecting the rights of and processes available to the 
        general public and make the administrative procedures available 
        for comment to the general public, agencies, employees, and 
        appropriate exclusive representatives certified pursuant to 
        sections 179A.01 to 179A.25 for at least 30 days prior to 
        implementation. 
           Sec. 11.  Minnesota Statutes 2002, section 43A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The commissioner through the 
        Personnel Bureau shall perform the duties assigned in this 
        chapter.  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 administration of systems for 
        employee selection; 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 2002, section 43A.10, is 
        amended to read: 
           43A.10 [EXAMINATIONS SELECTION PROCESS; ELIGIBILITY TO 
        COMPETE.] 
           Subdivision 1.  [GENERAL.] Entrance to the classified 
        service shall be through successful competition in an 
        examination and certification a selection process and 
        appointment from an eligible list a finalist pool except as 
        provided in section 43A.15 or other law and for employees in a 
        bargaining unit as defined in section 179A.10, appointments 
        shall be subject to applicable provisions of collective 
        bargaining agreements.  
           Subd. 2.  [EXAMINATION SELECTION CRITERIA AND METHODS.] All 
        examinations selection criteria and methods for filling 
        positions in the classified service shall be job related and 
        designed to fairly assess ability to perform the duties of the 
        class vacant position for which the examination selection 
        process is given conducted.  
           Subd. 2a.  [APPLICATION REQUIREMENTS.] The commissioner 
        shall establish and maintain a database of applicants for state 
        employment.  The commissioner shall establish, publicize, and 
        enforce minimum requirements for application.  The appointing 
        authority shall enforce the established minimum requirements for 
        application for individuals who express interest directly to the 
        appointing authority. 
           Subd. 2b.  [TERM OF ELIGIBILITY.] The term of eligibility 
        on layoff lists shall be as provided in the collective 
        bargaining agreement or plan established under section 43A.18, 
        under which the layoff list was established.  The term of 
        eligibility for all other applicants shall be determined by the 
        commissioner but shall not be less than six months. 
           Subd. 3.  [FACILITIES FURNISHED EXAMINERS FOR SELECTION 
        PROCEDURES.] The authorities having control of public buildings 
        in political subdivisions of the state and school districts, 
        upon written request of the commissioner, shall furnish 
        convenient facilities for the administration of examinations 
        selection procedures.  Upon such request, it shall be the duty 
        of state and local authorities and employees, as it is 
        consistent with their other duties, to aid in carrying out the 
        provisions of this section.  Campuses of the Minnesota State 
        Colleges and Universities may charge the commissioner for actual 
        costs incurred in providing facilities for 
        examinations selection procedures, provided that the costs were 
        incurred due solely to the examination selection procedure. 
           Subd. 4.  [CANDIDATES, ELIGIBLES APPLICANTS; EXPENSES.] The 
        commissioner or an appointing authority may pay travel expenses 
        incurred by candidates or eligibles applicants invited for oral 
        examinations or employment interviews in the manner and amounts 
        authorized by the commissioner.  
           Subd. 5.  [ELIGIBILITY FOR COMPETITIVE OPEN EXAMINATIONS.] 
        Competitive open examinations shall, upon public notice, be open 
        to all applicants who meet reasonable job-related requirements 
        fixed by the commissioner.  
           Subd. 6.  [ELIGIBILITY FOR COMPETITIVE PROMOTIONAL 
        EXAMINATIONS.] Competitive promotional examinations shall be 
        open only to employees of the civil service, the Minnesota State 
        Retirement System, the Public Employees Retirement Association, 
        and the Teacher's Retirement Association.  The commissioner may 
        require that competition be extended to all employees as defined 
        above or may limit competition to employees of one or more 
        agencies or organizational units thereof or to employees meeting 
        specified employment conditions.  
           Subd. 6a.  [LIMITED CONSIDERATION OF APPLICANTS.] The 
        commissioner may limit consideration to only those applicants 
        who have indicated availability for the geographic location, 
        employment condition, travel status, and job grouping of the 
        vacant position and who have indicated possession of the minimum 
        qualifications for the vacant position.  In addition, the 
        commissioner may limit consideration to only those applicants 
        who are: 
           (1) employees on a layoff list for the job class of the 
        position.  The appointing authority shall consider those names 
        as provided in collective bargaining agreements and plans 
        established under section 43A.18; 
           (2) current employees of the civil service, the Minnesota 
        State Retirement System, the Public Employees Retirement 
        Association, and the Teacher's Retirement Association, or 
        employees of one or more agencies or organizational units under 
        them; 
           (3) former permanent and probationary employees of the job 
        class who separated from the class in good standing within the 
        past four years and have indicated availability for 
        reinstatement to the class; or 
           (4) current permanent and probationary employees who have 
        indicated availability for transfer or demotion to the job class.
           Subd. 6b.  [REFUSAL TO CONSIDER AN APPLICANT.] The 
        commissioner may remove from consideration any applicant who: 
           (1) has been dismissed for cause from the public service; 
           (2) has directly or indirectly given or promised to give 
        anything of value to any person in connection with the selection 
        process, appointment, or proposed appointment; 
           (3) has made a false statement of any material fact, or 
        practiced or attempted to practice any deception or fraud in the 
        application or selection process or in securing eligibility or 
        appointment; or 
           (4) has a prior conviction of a crime directly related to 
        the vacant position provided the refusal is consistent with the 
        requirements and procedures of chapter 364. 
           When the commissioner refuses to consider an applicant, the 
        commissioner shall, upon request of the applicant, furnish the 
        applicant a statement of the reasons for the refusal.  Upon 
        receipt of relevant information, the commissioner shall 
        reconsider the refusal and may restore the applicant to 
        consideration. 
           Subd. 7.  [EXAMINATION SELECTION PROCESS ACCOMMODATIONS.] 
        Upon request, the commissioner or appointing authority shall 
        provide examination selection process accommodations to a 
        candidate an applicant with a disability that does not prevent 
        performance of the duties of the class position.  The 
        accommodations must provide an opportunity to fairly examine 
        assess the ability of the candidate applicant to perform the 
        duties of the class position notwithstanding the disability but 
        must preserve, to the extent feasible, the validity of the 
        examination selection process and equitable comparison of 
        examination scores results with the results of competitors 
        without disabilities.  
           Subd. 8.  [ELIGIBILITY FOR QUALIFIED DISABLED 
        EXAMINATIONS.] The commissioner shall establish alternative 
        examination methods to assess the qualifications of applicants 
        for a competitive open or competitive promotional examination 
        who have a disability that does not prevent performance of the 
        duties of the class but that cannot be accommodated in the 
        regular examination process.  Alternative examination methods 
        offered must allow candidates for competitive open and 
        competitive promotional exams to demonstrate possession of the 
        same knowledge, skills, and abilities essential to satisfactory 
        performance in the job class without compromising inferences 
        about other candidates' qualifications. 
           Sec. 13.  Minnesota Statutes 2002, section 43A.11, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISABLED VETERAN; DEFINITIONS.] For the purpose 
        of the preference to be used in securing appointment from a 
        competitive open examination an applicant pool, "disabled 
        veteran" means a person who has a compensable service connected 
        disability as adjudicated by the United States Veterans 
        Administration, or by the retirement board of one of the several 
        branches of the armed forces, which disability is existing at 
        the time preference is claimed.  For purposes of the preference 
        to be used in securing appointment from a competitive 
        promotional examination, "disabled veteran" means a person who, 
        at the time of election to use a promotional preference, is 
        entitled to disability compensation under laws administered by 
        the Veterans Administration for a permanent service connected 
        disability rated at 50 percent or more.  
           Sec. 14.  Minnesota Statutes 2002, section 43A.11, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RANKING OF VETERANS.] An eligible with a rating 
        augmented by veteran's preference shall be entered on an 
        eligible list ahead of a nonveteran with the same 
        rating. Applicants who meet the minimum qualifications for a 
        vacant position and claim disabled veteran's preference shall be 
        listed in the applicant pool ahead of all other applicants.  
        Applicants who meet the minimum qualifications for a vacant 
        position and claim nondisabled veteran's preference shall be 
        listed in the applicant pool after those claiming disabled 
        veteran's preference and ahead of nonveterans. 
           Sec. 15.  Minnesota Statutes 2002, section 43A.11, 
        subdivision 8, is amended to read: 
           Subd. 8.  [NOTIFICATION.] A governmental agency The 
        commissioner or an appointing authority, when 
        notifying eligibles applicants that they have passed 
        examinations been accepted into the state's selection process, 
        shall show the final examination ratings preference credits and 
        shall notify eligibles applicants that they may elect to use 
        veteran's preference to augment passing ratings. 
           Sec. 16.  Minnesota Statutes 2002, section 43A.11, 
        subdivision 9, is amended to read: 
           Subd. 9.  [REJECTION; EXPLANATION.] If the appointing 
        authority rejects a certified eligible member of the finalist 
        pool who has received claimed veteran's preference, the 
        appointing authority shall notify the eligible finalist in 
        writing of the reasons for the rejection.  
           Sec. 17.  [43A.121] [RANKING OF THE APPLICANT POOL.] 
           Applicants referred from a layoff list shall be ranked as 
        provided in the collective bargaining agreement or plan 
        established under section 43A.18, under which the layoff list 
        was established.  All other names in an applicant pool shall be 
        ranked according to the veteran's preference provisions of 
        section 43A.11, subdivision 7, and then in descending order of 
        the number of skill matches for the vacant position.  If any 
        ties in rank remain, those names shall appear in alphabetical 
        order. 
           Sec. 18.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] Positions in the classified 
        service may be filled other than by appointment from eligible 
        lists a finalist pool only as provided in this section or other 
        law, provided that appointments made pursuant to subdivisions 5, 
        6, 9, 10, 11, and 12, and 13 shall be subject to applicable 
        provisions of collective bargaining agreements.  
           Sec. 19.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EMERGENCY APPOINTMENTS.] An appointing authority 
        may make an emergency appointment for up to 30 45 working days.  
        If necessary, the commissioner may grant an extension of the 
        emergency appointment for 15 additional working days.  No person 
        may be employed in any one agency on an emergency basis for more 
        than 45 working days in any 12-month period.  
           Sec. 20.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROVISIONAL APPOINTMENTS.] The commissioner may 
        authorize an appointing authority to make a provisional 
        appointment if there is an urgent reason for filling a vacancy 
        and no person on an incomplete certification applicant is 
        suitable or available for appointment. and 
           No the person shall to be provisionally appointed unless 
        the person has passed an appropriate qualifying examination or 
        is qualified in all respects except for completion of a 
        licensure or certification requirement.  To the extent possible, 
        the commissioner shall ensure that provisional appointments are 
        kept to a minimum.  
           No person shall be employed on a provisional basis for more 
        than six months unless the commissioner grants an extension to a 
        maximum of 12 months in the best interest of the state.  No 
        extension may be granted beyond 12 months except for persons 
        provisionally appointed to physician positions or other 
        positions requiring licensure or certification where there is a 
        lack of eligibles applicants and the provisional appointee is 
        continuing to work to complete the licensure or certification 
        requirement.  
           At the request of an appointing authority, the commissioner 
        may authorize the probationary appointment of a provisional 
        appointee who has performed satisfactorily for at least 60 
        days and has completed the licensure or certification 
        requirement. 
           Sec. 21.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 7, is amended to read: 
           Subd. 7.  [APPOINTMENTS FOR UNCLASSIFIED INCUMBENTS OF 
        NEWLY CLASSIFIED POSITIONS.] The commissioner may authorize the 
        probationary appointment of an incumbent who has passed a 
        qualifying examination selection process and who has served at 
        least one year in an unclassified position which has been placed 
        in the classified service by proper authority.  
           Sec. 22.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 10, is amended to read: 
           Subd. 10.  [ROUTINE SERVICE AND ENTRY CLERICAL 
        APPOINTMENTS.] The commissioner may authorize the administration 
        of a qualifying selection process if a class is of a routine, 
        service nature involving unskilled tasks, the performance of 
        which cannot be directly related to qualifications beyond a 
        minimum competency level.  The commissioner may also authorize 
        the administration of qualifying skill tests for entry level 
        clerical positions as an alternative to certification from an 
        eligible list as provided in section 43A.13.  
           Sec. 23.  Minnesota Statutes 2003 Supplement, section 
        43A.15, subdivision 14, is amended to read: 
           Subd. 14.  [ON-THE-JOB DEMONSTRATION EXAMINATION PROCESS 
        AND APPOINTMENT.] The commissioner shall establish qualifying 
        procedures for candidates applicants whose disabilities are of 
        such a severe nature that the candidates applicants are unable 
        to demonstrate their abilities in competitive and qualified 
        disabled examination processes the selection process.  The 
        qualifying procedures must consist of up to 700 hours on-the-job 
        trial work experience which will be in lieu of a competitive 
        examination and for which the disabled person has the option of 
        being paid or unpaid.  Up to three persons with severe 
        disabilities and their job coach may be allowed to demonstrate 
        their job competence as a unit through the on-the-job trial work 
        experience examination selection procedure.  This work 
        experience on-the-job demonstration process must be limited 
        to candidates for appointment, promotion, or transfer applicants 
        for which whom there is no reasonable accommodation in 
        the examination selection process. 
           The commissioner may authorize the probationary appointment 
        of a candidate an applicant based on the request of the 
        appointing authority that documents that the candidate applicant 
        has successfully demonstrated qualifications for the position 
        through completion of an on-the-job trial work experience.  The 
        implementation of this subdivision may not be deemed a violation 
        of chapter 43A or 363A. 
           Sec. 24.  Minnesota Statutes 2002, section 43A.15, 
        subdivision 15, is amended to read: 
           Subd. 15.  [REINSTATEMENT.] An appointing authority may 
        directly reinstate a person who is a former permanent or 
        probationary employee of the job class, within four years of 
        separation from the class.  The four-year limitation does not 
        apply to former permanent or probationary employees of the class 
        who are receiving disability benefits under a state retirement 
        plan. 
           Sec. 25.  Minnesota Statutes 2002, section 43A.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] All unlimited appointments to 
        positions in the classified service except as provided in this 
        subdivision shall be for a probationary period the duration of 
        which shall be determined through collective bargaining 
        agreements or plans established pursuant to section 43A.18 but 
        which shall not be less than 30 days of full-time equivalent 
        service nor more than two years of full-time equivalent 
        service.  An appointing authority may require a probationary 
        period for transfers, reemployments, reinstatements, voluntary 
        demotions, and appointments from layoff lists of former 
        employees of a different appointing authority.  For employees in 
        a bargaining unit as defined in section 179A.10 the requirement 
        of such a probationary period shall be subject to applicable 
        provisions of collective bargaining agreements.  
           Sec. 26.  Minnesota Statutes 2002, section 43A.191, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AUDITS; SANCTIONS AND INCENTIVES.] (a) The 
        commissioner shall annually audit the record of each agency to 
        determine the rate of compliance with affirmative action 
        requirements. 
           (b) By March 1 of each odd-numbered year, the commissioner 
        shall submit a report on affirmative action progress of each 
        agency and the state as a whole to the governor and to the 
        Finance Committee of the senate, the Ways and Means Committee of 
        the house of representatives, the Governmental Operations 
        Committees of both houses of the legislature, and the 
        Legislative Coordinating Commission on Employee Relations.  The 
        report must include noncompetitive appointments made under 
        section 43A.08, subdivision 2a, or 43A.15, subdivisions 3 to 13 
        7, 10, and 12, and cover each agency's rate of compliance with 
        affirmative action requirements. 
           (c) An agency that does not meet its hiring goals must 
        justify its nonaffirmative action hires in competitive and 
        noncompetitive appointments according to criteria issued by the 
        Department of Employee Relations.  "Missed opportunity" includes 
        failure to justify a nonaffirmative action hire.  An agency must 
        have 25 percent or less missed opportunities in competitive 
        appointments and 25 percent or less missed opportunities in 
        appointments made under sections 43A.08, subdivisions 1, clauses 
        (9), (11), and (16); and 2a; and 43A.15, subdivisions 3 to 7, 
        10, 12, and 13.  In addition, an agency shall: 
           (1) demonstrate a good faith effort to recruit protected 
        group members by following an active recruitment plan; 
           (2) implement a coordinated retention plan; and 
           (3) have an established complaint resolution procedure. 
           (d) The commissioner shall develop reporting standards and 
        procedures for measuring compliance. 
           (e) An agency is encouraged to develop other innovative 
        ways to promote awareness, acceptance, and appreciation for 
        diversity and affirmative action.  These innovations will be 
        considered when evaluating an agency's compliance with this 
        section. 
           (f) An agency not in compliance with affirmative action 
        requirements of this section must identify methods and programs 
        to improve performance, to reallocate resources internally in 
        order to increase support for affirmative action programs, and 
        to submit program and resource reallocation proposals to the 
        commissioner for approval.  An agency must submit these 
        proposals within 120 days of being notified by the commissioner 
        that it is out of compliance with affirmative action 
        requirements.  The commissioner shall monitor quarterly the 
        affirmative action programs of an agency found to be out of 
        compliance. 
           (g) The commissioner shall establish a program to recognize 
        an agency that has made significant and measurable progress in 
        implementing an affirmative action plan. 
           Sec. 27.  Minnesota Statutes 2002, 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 this chapter.  
           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 and make the applicant database available 
        to appointing authorities to use in making appointments to 
        positions in the unclassified service.  
           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. 28.  Minnesota Statutes 2002, section 43A.39, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITED ACTS; PENALTIES.] All employees 
        shall comply with and aid in all proper ways the enforcement of 
        the provisions of this chapter.  No employee or any other person 
        shall intentionally: 
           (a) Make any false oral or written statement, mark, rating 
        or report concerning any application, examination, certification 
        selection process, or appointment made under provisions of this 
        chapter or in any manner commit or attempt to commit any fraud 
        preventing the impartial execution of this chapter; 
           (b) Directly or indirectly, give, render, pay, offer, 
        solicit, or accept any money, service or other valuable 
        consideration for any appointment, proposed appointment, 
        promotion or proposed promotion to, or any advantage in 
        obtaining, a position in the civil service; 
           (c) Defeat, deceive, or obstruct any person in exercising 
        rights to examination, eligibility, certification or appointment 
        under this chapter, or furnish to any person any special or 
        secret information for the purpose of affecting the rights or 
        prospects of any person with respect to appointment, advancement 
        or retention in the classified service; 
           (d) Violate the provisions of section 43A.37 or 43A.38; or 
           (e) If in the classified service, engage in activities 
        prohibited by section 43A.32. 
           Sec. 29.  Minnesota Statutes 2002, section 197.455, is 
        amended to read: 
           197.455 [STATE LAW APPLICABLE VETERAN'S PREFERENCE 
        APPLIED.] 
           Subdivision 1.  [APPLICATION.] The provisions of section 
        43A.11 granting preference to veterans in the state civil 
        service This section shall also govern preference of a veteran 
        under the civil service laws, charter provisions, ordinances, 
        rules or regulations of a county, city, town, school district, 
        or other municipality or political subdivision of this state, 
        except that a notice of rejection stating the reasons for 
        rejection of a qualified veteran shall be filed with the 
        appropriate local personnel officer.  Any provision in a law, 
        charter, ordinance, rule or regulation contrary to the 
        applicable provisions of this section 43A.11 is void to the 
        extent of such inconsistency.  Sections 197.46 to 197.48 shall 
        not apply to state civil service. 
           Subd. 2.  [CREATION.] Recognizing that training and 
        experience in the military services of the government and 
        loyalty and sacrifice for the government are qualifications of 
        merit which cannot be readily assessed by examination, a 
        veteran's preference shall be available to a veteran as defined 
        in section 197.447. 
           Subd. 3.  [RESTRICTIONS.] Veteran's preference credit under 
        this section may not be used by any veteran who is currently 
        receiving or is eligible to receive a monthly veteran's pension 
        based exclusively on length of military service. 
           Subd. 4.  [NONDISABLED VETERAN'S CREDIT.] There shall be 
        added to the competitive open examination rating of a 
        nondisabled veteran, who so elects, a credit of five points 
        provided that the veteran obtained a passing rating on the 
        examination without the addition of the credit points. 
           Subd. 5.  [DISABLED VETERAN'S CREDIT.] There shall be added 
        to the competitive open examination rating of a disabled 
        veteran, who so elects, a credit of ten points provided that the 
        veteran obtained a passing rating on the examination without the 
        addition of the credit points.  There shall be added to the 
        competitive promotional examination rating of a disabled 
        veteran, who so elects, a credit of five points provided that 
        (1) the veteran obtained a passing rating on the examination 
        without the addition of the credit points; and (2) the veteran 
        is applying for a first promotion after securing public 
        employment. 
           Subd. 6.  [DISABLED VETERAN; DEFINITIONS.] For the purpose 
        of the preference to be used in securing appointment from a 
        competitive open examination, "disabled veteran" means a person 
        who has a compensable service-connected disability as 
        adjudicated by the United States Veterans Administration, or by 
        the retirement board of one of the several branches of the armed 
        forces, which disability is existing at the time preference is 
        claimed.  For purposes of the preference to be used in securing 
        appointment from a competitive promotional examination, 
        "disabled veteran" means a person who, at the time of election 
        to use a promotional preference, is entitled to disability 
        compensation under laws administered by the Veterans 
        Administration for a permanent service-connected disability 
        rated at 50 percent or more. 
           Subd. 7.  [PREFERENCE FOR SPOUSES.] A preference available 
        pursuant to this section may be used by the surviving spouse of 
        a deceased veteran and by the spouse of a disabled veteran who 
        because of the disability is unable to qualify. 
           Subd. 8.  [RANKING OF VETERANS.] An eligible with a rating 
        augmented by veteran's preference shall be entered on an 
        eligible list ahead of a nonveteran with the same rating. 
           Subd. 9.  [NOTIFICATION.] A governmental agency, when 
        notifying eligibles that they have passed examinations, shall 
        show the final examination ratings and preference credits and 
        shall notify eligibles that they may elect to use veteran's 
        preference to augment passing ratings. 
           Subd. 10.  [REJECTION; EXPLANATION.] If the appointing 
        authority rejects a certified eligible who has received 
        veteran's preference, the appointing authority shall notify the 
        eligible in writing of the reasons for the rejection and file 
        the notice with the appropriate local personnel officer. 
           Sec. 30.  [LEGISLATIVE STUDY.] 
           The Legislative Coordinating Commission shall study and 
        report to the governmental operations and local government 
        committees of both houses of the legislature by January 15, 
        2005, on the impacts of the political subdivision compensation 
        limit on local units of government.  The study must, at a 
        minimum: 
           (1) examine local government compensation limits and 
        comparative salary data in other states; 
           (2) assess the impacts of the local government compensation 
        limit on salary structures, recruitment, and retention; and 
           (3) evaluate alternatives to the compensation limit, 
        including elimination of the limit. 
        In developing this report, the commission must consult with the 
        commissioner of employee relations and local government 
        associations, including the Association of Metropolitan 
        Municipalities, Association of Minnesota Counties, League of 
        Minnesota Cities, Metropolitan Inter-County Association, 
        Municipal Legislative Commission, and the Minnesota City/County 
        Management Association. 
           Sec. 31.  [REPEALER.] 
           (a) Minnesota Statutes 2002, sections 43A.02, subdivisions 
        7, 8, 15, 16, 19, 20, and 37; 43A.11, subdivisions 3 and 4; 
        43A.12; 43A.13, subdivisions 1, 2, 3, 4, 5, 6, and 8; and 
        43A.15, subdivisions 8, 9, and 11; and Minnesota Statutes 2003 
        Supplement, section 43A.13, subdivision 7, are repealed. 
           (b) Minnesota Rules, parts 3900.3300; 3900.6100; 3900.6300; 
        3900.6400; 3900.6500; 3900.6600; 3900.7100; 3900.7200; 
        3900.7300; 3900.7400; 3900.8500; 3900.8600; and 3900.8800, are 
        repealed. 
           Presented to the governor May 14, 2004 
           Signed by the governor May 18, 2004, 3:20 p.m.