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

                            CHAPTER 457-S.F.No. 3257 
                  An act relating to state employment; modifying 
                  legislative employment provisions; amending Minnesota 
                  Statutes 1998, sections 3.07; 3.09; 3.095; 352.01, 
                  subdivision 2a; and 352D.02, subdivisions 1 and 1c; 
                  Minnesota Statutes 1999 Supplement, sections 3.096; 
                  and 43A.24, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 3.07, is 
        amended to read: 
           3.07 [ADDITIONAL EMPLOYEES.] 
           Each house, after its organization, may appoint and at 
        pleasure remove the employees provided for by its permanent 
        rules or recommended by its committee on legislative expense 
        rules.  All officers and employees shall be paid by the day and 
        shall receive the compensation provided by the permanent rules 
        of the electing or appointing body or recommended by its 
        committee on legislative expense rules.  Unless otherwise 
        expressly provided by law, no officer or employee shall receive 
        any other compensation for services.  
           Sec. 2.  Minnesota Statutes 1998, section 3.09, is amended 
        to read: 
           3.09 [COMPENSATION OF EMPLOYEES.] 
           The compensation of officers and employees shall be at the 
        rates per day fixed by the permanent rules of the electing or 
        appointing body or recommended by its committee on legislative 
        expense rules.  
           Sec. 3.  Minnesota Statutes 1998, section 3.095, is amended 
        to read: 
           3.095 [LEGISLATIVE EMPLOYEES, LEAVES.] 
           The legislative coordinating commission shall adopt plans 
        for sick leave and annual leave for the permanent employees of 
        the legislature and of legislative committees and commissions. 
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 3.096, 
        is amended to read: 
           3.096 [TRANSFER OF LEAVE.] 
           An employee in the classified or unclassified service who 
        accepts a position as a permanent an employee of the legislature 
        shall have accrued vacation and sick leave transferred and 
        placed to the employee's credit on the legislative records.  A 
        permanent An employee of the legislature who accepts a position 
        in the classified or unclassified service shall have accrued 
        vacation and sick leave transferred and placed to the employee's 
        credit on the records of the new appointing authority.  Vacation 
        and sick leave are not transferred if the new position does not 
        provide for the leave.  The amount of vacation and sick leave 
        that may be transferred is subject to any limitations imposed by 
        the receiving agency's collective bargaining agreement or 
        compensation plan. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        43A.24, subdivision 2, is amended to read: 
           Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
        are eligible for state paid life insurance and hospital, 
        medical, and dental benefits as determined in applicable 
        collective bargaining agreements or by the commissioner or by 
        plans pursuant to section 43A.18, subdivision 6, or by the board 
        of regents for employees of the University of Minnesota not 
        covered by collective bargaining agreements.  Coverages made 
        available, including optional coverages, are as contained in the 
        plan established pursuant to section 43A.18, subdivision 2: 
           (a) a member of the state legislature, provided that 
        changes in benefits resulting in increased costs to the state 
        shall not be effective until expiration of the term of the 
        members of the existing house of representatives.  An eligible 
        member of the state legislature may decline to be enrolled for 
        state paid coverages by filing a written waiver with the 
        commissioner.  The waiver shall not prohibit the member from 
        enrolling the member or dependents for optional coverages, 
        without cost to the state, as provided for in section 43A.26.  A 
        member of the state legislature who returns from a leave of 
        absence to a position previously occupied in the civil service 
        shall be eligible to receive the life insurance and hospital, 
        medical, and dental benefits to which the position is entitled; 
           (b) a permanent an employee of the legislature or a 
        permanent an employee of a permanent study or interim committee 
        or commission or a state employee on leave of absence to work 
        for the legislature, during a regular or special legislative 
        session, as determined by the legislative coordinating 
        commission; 
           (c) a judge of the appellate courts or an officer or 
        employee of these courts; a judge of the district court, a judge 
        of county court, or a judge of county municipal court; a 
        district court referee, judicial officer, court reporter, or law 
        clerk; a district administrator; an employee of the office of 
        the district administrator that is not in the second or fourth 
        judicial district; a court administrator or employee of the 
        court administrator in a judicial district under section 
        480.181, subdivision 1, paragraph (b), and a guardian ad litem 
        program employee; 
           (d) a salaried employee of the public employees retirement 
        association; 
           (e) a full-time military or civilian officer or employee in 
        the unclassified service of the department of military affairs 
        whose salary is paid from state funds; 
           (f) a salaried employee of the Minnesota historical 
        society, whether paid from state funds or otherwise, who is not 
        a member of the governing board; 
           (g) an employee of the regents of the University of 
        Minnesota; 
           (h) notwithstanding section 43A.27, subdivision 3, an 
        employee of the state of Minnesota or the regents of the 
        University of Minnesota who is at least 60 and not yet 65 years 
        of age on July 1, 1982, who is otherwise eligible for employee 
        and dependent insurance and benefits pursuant to section 43A.18 
        or other law, who has at least 20 years of service and retires, 
        earlier than required, within 60 days of March 23, 1982; or an 
        employee who is at least 60 and not yet 65 years of age on July 
        1, 1982, who has at least 20 years of state service and retires, 
        earlier than required, from employment at Rochester state 
        hospital after July 1, 1981; or an employee who is at least 55 
        and not yet 65 years of age on July 1, 1982, and is covered by 
        the Minnesota state retirement system correctional employee 
        retirement plan or the state patrol retirement fund, who has at 
        least 20 years of state service and retires, earlier than 
        required, within 60 days of March 23, 1982.  For purposes of 
        this clause, a person retires when the person terminates active 
        employment in state or University of Minnesota service and 
        applies for a retirement annuity.  Eligibility shall cease when 
        the retired employee attains the age of 65, or when the employee 
        chooses not to receive the annuity that the employee has applied 
        for.  The retired employee shall be eligible for coverages to 
        which the employee was entitled at the time of retirement, 
        subject to any changes in coverage through collective bargaining 
        or plans established pursuant to section 43A.18, for employees 
        in positions equivalent to that from which retired, provided 
        that the retired employee shall not be eligible for state-paid 
        life insurance.  Coverages shall be coordinated with relevant 
        health insurance benefits provided through the federally 
        sponsored Medicare program; 
           (i) an employee of an agency of the state of Minnesota 
        identified through the process provided in this paragraph who is 
        eligible to retire prior to age 65.  The commissioner and the 
        exclusive representative of state employees shall enter into 
        agreements under section 179A.22 to identify employees whose 
        positions are in programs that are being permanently eliminated 
        or reduced due to federal or state policies or practices.  
        Failure to reach agreement identifying these employees is not 
        subject to impasse procedures provided in chapter 179A.  The 
        commissioner must prepare a plan identifying eligible employees 
        not covered by a collective bargaining agreement in accordance 
        with the process outlined in section 43A.18, subdivisions 2 and 
        3.  For purposes of this paragraph, a person retires when the 
        person terminates active employment in state service and applies 
        for a retirement annuity.  Eligibility ends as provided in the 
        agreement or plan, but must cease at the end of the month in 
        which the retired employee chooses not to receive an annuity, or 
        the employee is eligible for employer-paid health insurance from 
        a new employer.  The retired employees shall be eligible for 
        coverages to which they were entitled at the time of retirement, 
        subject to any changes in coverage through collective bargaining 
        or plans established under section 43A.18 for employees in 
        positions equivalent to that from which they retired, provided 
        that the retired employees shall not be eligible for state-paid 
        life insurance; 
           (j) employees of the state board of public defense, with 
        eligibility determined by the state board of public defense in 
        consultation with the commissioner of employee relations; and 
           (k) employees of the health data institute under section 
        62J.451, subdivision 12, as paid for by the health data 
        institute. 
           Sec. 6.  Minnesota Statutes 1998, section 352.01, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [INCLUDED EMPLOYEES.] (a) "State employee" 
        includes: 
           (1) employees of the Minnesota historical society; 
           (2) employees of the state horticultural society; 
           (3) employees of the Disabled American Veterans, Department 
        of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 
        if employed before July 1, 1963; 
           (4) employees of the Minnesota crop improvement 
        association; 
           (5) employees of the adjutant general who are paid from 
        federal funds and who are not covered by any federal civilian 
        employees retirement system; 
           (6) employees of the state universities employed under the 
        university activities program; 
           (7) currently contributing employees covered by the system 
        who are temporarily employed by the legislature during a 
        legislative session or any currently contributing employee 
        employed for any special service as defined in subdivision 2b, 
        clause (8); 
           (8) employees of the armory building commission; 
           (9) permanent employees of the legislature appointed 
        without a limit on the duration of their employment and persons 
        employed or designated by the legislature or by a legislative 
        committee or commission or other competent authority to conduct 
        a special inquiry, investigation, examination, or installation; 
           (10) trainees who are employed on a full-time established 
        training program performing the duties of the classified 
        position for which they will be eligible to receive immediate 
        appointment at the completion of the training period; 
           (11) employees of the Minnesota safety council; 
           (12) any employees on authorized leave of absence from the 
        transit operating division of the former metropolitan transit 
        commission who are employed by the labor organization which is 
        the exclusive bargaining agent representing employees of the 
        transit operating division; 
           (13) employees of the metropolitan council, metropolitan 
        parks and open space commission, metropolitan sports facilities 
        commission, metropolitan mosquito control commission, or 
        metropolitan radio board unless excluded or covered by another 
        public pension fund or plan under section 473.415, subdivision 
        3; 
           (14) judges of the tax court; 
           (15) personnel employed on June 30, 1992, by the University 
        of Minnesota in the management, operation, or maintenance of its 
        heating plant facilities, whose employment transfers to an 
        employer assuming operation of the heating plant facilities, so 
        long as the person is employed at the University of Minnesota 
        heating plant by that employer or by its successor organization; 
           (16) seasonal help in the classified service employed by 
        the department of revenue; and 
           (17) a person who renders teaching or other service for the 
        Minnesota state colleges and universities system and who also 
        renders service on a part-time basis for an employer with 
        employees covered by the general state employees retirement plan 
        of the Minnesota state retirement system, for all service with 
        the Minnesota state colleges and universities system, if the 
        person's nonteaching service comprises at least 50 percent of 
        the combined total salary received by the person as determined 
        by the chancellor of the Minnesota state colleges and 
        universities system or if the person is certified for general 
        state employees retirement plan coverage by the chancellor of 
        the Minnesota state colleges and universities system. 
           (b) Employees specified in paragraph (a), clause (15), are 
        included employees under paragraph (a) if employer and employee 
        contributions are made in a timely manner in the amounts 
        required by section 352.04.  Employee contributions must be 
        deducted from salary.  Employer contributions are the sole 
        obligation of the employer assuming operation of the University 
        of Minnesota heating plant facilities or any successor 
        organizations to that employer. 
           Sec. 7.  Minnesota Statutes 1998, section 352D.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
        paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 
        are in the unclassified service of the state or metropolitan 
        council and are eligible for coverage under the general state 
        employees retirement plan under chapter 352, are participants in 
        the unclassified program under this chapter unless the employee 
        gives notice to the executive director of the Minnesota state 
        retirement system within one year following the commencement of 
        employment in the unclassified service that the employee desires 
        coverage under the general state employees retirement plan.  For 
        the purposes of this chapter, an employee who does not file 
        notice with the executive director is deemed to have exercised 
        the option to participate in the unclassified plan. 
           (b) Persons referenced in paragraph (c), clauses (1) and 
        (5), are participants in the unclassified program under this 
        chapter unless the person is eligible to elect different 
        coverage under section 3A.07 or 352C.011 and, after July 1, 
        1998, elects retirement coverage by the applicable alternative 
        retirement plan. 
           (c) Enumerated employees and referenced persons are: 
           (1) the governor, the lieutenant governor, the secretary of 
        state, the state auditor, the state treasurer, and the attorney 
        general; 
           (2) an employee in the office of the governor, lieutenant 
        governor, secretary of state, state auditor, state treasurer, 
        attorney general; 
           (3) an employee of the state board of investment; 
           (4) the head of a department, division, or agency created 
        by statute in the unclassified service, an acting department 
        head subsequently appointed to the position, or an employee 
        enumerated in section 15A.0815 or 15A.083, subdivision 4; 
           (5) a member of the legislature; 
           (6) a permanent, full-time unclassified employee of the 
        legislature or a commission or agency of the legislature who is 
        appointed without a limit on the duration of the employment or a 
        temporary legislative employee having shares in the supplemental 
        retirement fund as a result of former employment covered by this 
        chapter, whether or not eligible for coverage under the 
        Minnesota state retirement system; 
           (7) a person who is employed in a position established 
        under section 43A.08, subdivision 1, clause (3), or in a 
        position authorized under a statute creating or establishing a 
        department or agency of the state, which is at the deputy or 
        assistant head of department or agency or director level; 
           (8) the regional administrator, or executive director of 
        the metropolitan council, general counsel, division directors, 
        operations managers, and other positions as designated by the 
        council, all of which may not exceed 27 positions at the council 
        and the chair, provided that upon initial designation of all 
        positions provided for in this clause, no further designations 
        or redesignations may be made without approval of the board of 
        directors of the Minnesota state retirement system; 
           (9) the executive director, associate executive director, 
        and not to exceed nine positions of the higher education 
        services office in the unclassified service, as designated by 
        the higher education services office before January 1, 1992, or 
        subsequently redesignated with the approval of the board of 
        directors of the Minnesota state retirement system, unless the 
        person has elected coverage by the individual retirement account 
        plan under chapter 354B; 
           (10) the clerk of the appellate courts appointed under 
        article VI, section 2, of the Constitution of the state of 
        Minnesota; 
           (11) the chief executive officers of correctional 
        facilities operated by the department of corrections and of 
        hospitals and nursing homes operated by the department of human 
        services; 
           (12) an employee whose principal employment is at the state 
        ceremonial house; 
           (13) an employee of the Minnesota educational computing 
        corporation; 
           (14) an employee of the world trade center board; and 
           (15) an employee of the state lottery board who is covered 
        by the managerial plan established under section 43A.18, 
        subdivision 3. 
           Sec. 8.  Minnesota Statutes 1998, section 352D.02, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  An employee covered by the regular plan who is 
        subsequently employed as a permanent, full-time unclassified 
        employee of the legislature or any commission or agency of the 
        legislature without a limit on the duration of the employment 
        may elect to transfer accumulated employee and matching employer 
        contributions, as provided in section 352D.03. 
           Presented to the governor May 2, 2000 
           Signed by the governor May 5, 2000, 10:51 a.m.

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Revisor of Statutes