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

                            CHAPTER 351-H.F.No. 3068 
                  An act relating to state employment; modifying salary 
                  provisions for certain officials; setting conditions 
                  for advancing employees within a compensation plan or 
                  to exceed the salary of an agency head; providing an 
                  early retirement incentive for certain employees of 
                  the bureau of criminal apprehension; ratifying certain 
                  labor agreements; ratifying certain plans and 
                  proposals; amending Minnesota Statutes 1997 
                  Supplement, sections 15A.0815, subdivision 3; 43A.17, 
                  subdivision 3; and 298.22, subdivision 1; proposing 
                  coding for new law in Minnesota Statutes, chapter 43A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1997 Supplement, section 
        15A.0815, subdivision 3, is amended to read: 
           Subd. 3.  [GROUP II SALARY LIMITS.] The salaries for 
        positions in this subdivision may not exceed 75 percent of the 
        salary of the governor: 
           Ombudsman for corrections; 
           Executive director of gambling control board; 
           Commissioner, iron range resources and rehabilitation 
        board; 
           Commissioner, bureau of mediation services; 
           Ombudsman for mental health and retardation; 
           Chair, metropolitan council; 
           Executive director of pari-mutuel racing; 
           Executive director, public employees retirement 
        association; 
           Commissioner, public utilities commission; 
           Executive director, state retirement system; and 
           Executive director, teachers retirement association. 
           Sec. 2.  Minnesota Statutes 1997 Supplement, section 
        43A.17, subdivision 3, is amended to read: 
           Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] (a) Upon the 
        request of the appointing authority, and when the commissioner 
        determines that changes in employment situations create 
        difficulties in attracting or retaining employees, the 
        commissioner may approve an unusual employment situation 
        increase to advance an employee within the compensation plan.  
        The action must be consistent with applicable provisions of 
        collective bargaining agreements or plans adopted under section 
        43A.18.  The commissioner shall review each proposal giving due 
        consideration to salary rates paid to other employees in the 
        same class and agency and may approve any request which in the 
        commissioner's judgment is in the best interest of the state.  
           (b) If the commissioner determines that the a position 
        requires special expertise necessitating a higher salary to 
        attract or retain qualified persons, the commissioner may grant 
        an exemption not to exceed 120 percent of the salary of the head 
        of the agency or the maximum rate established for the position, 
        whichever is less.  
           (c) The following conditions apply to a request under 
        paragraph (a) to advance an employee within a compensation plan 
        or under paragraph (b) to exceed the salary of the agency head: 
           (1) the appointing authority making the request must submit 
        a detailed written statement for each position contained in the 
        request, specifying the changes in employment situations that 
        create difficulties in attracting or retaining an employee for 
        the position; 
           (2) the commissioner shall review each proposal giving due 
        consideration to salary rates paid to other employees in the 
        same class and agency and, if other conditions in this paragraph 
        are met, may approve any request that in the commissioner's 
        judgment is in the best interest of the state; 
           (3) the action must be consistent with applicable 
        provisions of collective bargaining agreements or plans adopted 
        under section 43A.18; 
           (4) each increase or exemption must be separately 
        documented for each employee or position and may not be applied 
        to groups of employees; and 
           (5) the commissioner shall report the granting of a request 
        to the chair of the legislative coordinating commission within 
        three working days. 
           Sec. 3.  [43A.345] [EARLY RETIREMENT INCENTIVE.] 
           Subdivision 1.  [ELIGIBILITY.] The incentive in subdivision 
        2 is available to any employee of the bureau of criminal 
        apprehension in the department of public safety who: 
           (1) retires during the pay period in which the employee's 
        55th birthday occurs, or retires during the first pay period 
        after the employee's 55th birthday in which the employee's 
        anniversary date occurs; 
           (2) is covered by the state patrol retirement fund and is 
        eligible to receive an annuity from that fund at the time of 
        retirement; and 
           (3) is receiving the full employer contribution for health 
        and dental coverage immediately before retirement, or is on an 
        unpaid leave of absence immediately before retirement which 
        began not more than six months before retirement, during which 
        leave the employee continues to be covered by the state group 
        insurance program by employee payment of premiums. 
           Subd. 2.  [INCENTIVE.] For an employee who meets the 
        requirements of subdivision 1, the employer shall pay the full 
        employer contribution, as specified in the collective bargaining 
        agreement with the bargaining unit in section 179A.10, 
        subdivision 2, clause (1), for health and dental insurance for 
        the employee and, if the employee had dependent coverage 
        immediately before retirement, for the employee's dependents.  
        Notwithstanding section 179A.20, subdivision 2a, the employer 
        contributions under this subdivision must continue until the 
        employee reaches age 65.  The postretirement health and dental 
        insurance coverage provided under this section is that coverage 
        the employee was receiving as of the date of retirement, subject 
        to any changes in coverage specified in the collective 
        bargaining agreement with the bargaining unit in section 
        179A.10, subdivision 2, clause (1). 
           Subd. 3.  [PRE-55 INCENTIVE.] An employee who meets the 
        conditions in subdivision 1 but has attained the age of 50 but 
        not yet 55 at the time of retirement must receive until age 65 
        an employer contribution of 120 times the amount of the monthly 
        employer contribution applicable to the employee at the time of 
        retirement, divided by the number of months from the date of 
        retirement until the employee attains age 65.  
           Subd. 4.  [DURATION.] If a collective bargaining agreement 
        with the bargaining unit in section 179A.10, subdivision 2, 
        clause (1), does not contain an early retirement incentive 
        similar to that provided in this section, the benefits under 
        this section are not available to an employee who retires after 
        the implementation date of the agreement. 
           Subd. 5.  [TRANSITION.] An employee otherwise eligible for 
        an early retirement incentive under subdivisions 1 and 2 who 
        retires on or after the employee's 55th birthday and between 
        June 30, 1997, and July 1, 1998, is entitled to the incentive in 
        subdivision 2. 
           Sec. 4.  Minnesota Statutes 1997 Supplement, section 
        298.22, subdivision 1, is amended to read: 
           Subdivision 1.  (1) The governor shall appoint the 
        commissioner of iron range resources and rehabilitation under 
        section 15.06. 
           (2) The commissioner may hold other positions or 
        appointments that are not incompatible with duties as 
        commissioner of iron range resources and rehabilitation.  The 
        commissioner may appoint a deputy commissioner.  All expenses of 
        the commissioner, including the payment of such assistance as 
        may be necessary, must be paid out of the amounts appropriated 
        by section 298.28.  The salary of the commissioner must be set 
        by the legislative coordinating commission and may not exceed 75 
        percent of the salary of the governor. 
           (3) When the commissioner determines that distress and 
        unemployment exists or may exist in the future in any county by 
        reason of the removal of natural resources or a possibly limited 
        use of natural resources in the future and any resulting 
        decrease in employment, the commissioner may use whatever 
        amounts of the appropriation made to the commissioner of revenue 
        in section 298.28 that are determined to be necessary and proper 
        in the development of the remaining resources of the county and 
        in the vocational training and rehabilitation of its residents, 
        except that the amount needed to cover cost overruns awarded to 
        a contractor by an arbitrator in relation to a contract awarded 
        by the commissioner or in effect after July 1, 1985, is 
        appropriated from the general fund.  For the purposes of this 
        section, "development of remaining resources" includes, but is 
        not limited to, the promotion of tourism. 
           Sec. 5.  [RATIFICATIONS.] 
           Subdivision 1.  [COUNCIL 6.] The labor agreement between 
        the state of Minnesota and state bargaining units 2, 3, 4, 6, 7, 
        and 8 represented by the American federation of state, county, 
        and municipal employees, council 6, approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        August 13, 1997, is ratified. 
           Subd. 2.  [PROFESSIONAL EMPLOYEES.] The labor agreement 
        between the state of Minnesota and the Minnesota association of 
        professional employees, approved by the legislative coordinating 
        commission subcommittee on employee relations on September 26, 
        1997, is ratified. 
           Subd. 3.  [SUPERVISORS.] The labor agreement between the 
        state of Minnesota and the middle management association, 
        approved by the legislative coordinating commission subcommittee 
        on employee relations on September 26, 1997, is ratified. 
           Subd. 4.  [ENGINEERS.] The labor agreement between the 
        state of Minnesota and the Minnesota government engineers 
        council, approved by the legislative coordinating commission 
        subcommittee on employee relations on September 26, 1997, is 
        ratified. 
           Subd. 5.  [COMMUNITY COLLEGE FACULTY.] The labor agreement 
        between the state of Minnesota and the Minnesota community 
        college faculty association, approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        December 19, 1997, is ratified. 
           Subd. 6.  [SPECIAL TEACHERS.] The labor agreement between 
        the state of Minnesota and the state residential schools 
        education association, approved by the legislative coordinating 
        commission subcommittee on employee relations on December 19, 
        1997, is ratified. 
           Subd. 7.  [LAW ENFORCEMENT.] The labor agreement between 
        the state of Minnesota and the Minnesota law enforcement 
        association, approved by the legislative coordinating commission 
        subcommittee on employee relations on December 19, 1997, is 
        ratified. 
           Subd. 8.  [SALARIES FOR CERTAIN HEADS OF STATE 
        AGENCIES.] The proposal by the governor to increase the salaries 
        of certain heads of state agencies, approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        September 26, 1997, is ratified. 
           Subd. 9.  [COMMISSIONER'S PLAN.] The commissioner's plan 
        for unrepresented employees, approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        December 19, 1997, is ratified. 
           Subd. 10.  [UNREPRESENTED, UNCLASSIFIED EMPLOYEES; HIGHER 
        EDUCATION SERVICES OFFICE.] The amendment to the plan for 
        unrepresented, unclassified employees of the higher education 
        services office, approved by the legislative coordinating 
        commission subcommittee on employee relations on December 19, 
        1997, is ratified. 
           Subd. 11.  [DIRECTOR; HIGHER EDUCATION SERVICES 
        OFFICE.] The salary of the director of the higher education 
        services office is $79,000, effective after July 1, 1997, and 
        upon approval by the higher education services council.  
           Subd. 12.  [MANAGERIAL PLAN.] The plan for managerial 
        employees, as modified and approved by the legislative 
        coordinating commission subcommittee on employee relations on 
        January 29, 1998, is ratified. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 3 and 5 are effective the day following final 
        enactment. 
           Presented to the governor March 30, 1998 
           Signed by the governor April 2, 1998, 11:05 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes