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                            CHAPTER 425-S.F.No. 2457 
                  An act relating to public employees; regulating the 
                  salaries of certain higher education officers; 
                  establishing a vacation donation sick leave account; 
                  prescribing the form and use of uniform collective 
                  bargaining settlement forms; allowing certain students 
                  to work for department of transportation for 48 
                  months; ratifying certain labor agreements and 
                  compensation plans; appropriating money; amending 
                  Minnesota Statutes 1994, sections 3.855, subdivision 
                  4; 43A.08, subdivision 4; 43A.17, subdivision 1; 
                  179A.03, subdivision 4; and 179A.07, by adding a 
                  subdivision; Minnesota Statutes 1995 Supplement, 
                  sections 15A.081, subdivision 7b; 43A.18, subdivision 
                  2; and 179A.04, subdivision 3; 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 1994, section 3.855, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OTHER DUTIES.] The commission shall:  
           (1) continually monitor the state's civil service system 
        provided for in chapter 43A, rules of the commissioner of 
        employee relations, and the collective bargaining process 
        provided for in chapter 179A, as applied to state employees; 
           (2) research and analyze the need for improvements in those 
        statutory sections; 
           (3) adopt rules consistent with this section relating to 
        the scheduling and conduct of commission business and other 
        organizational and procedural matters; and 
           (4) perform other related functions delegated to it by the 
        legislature; and 
           (5) adopt changes, as necessary, to the uniform collective 
        bargaining agreement settlement document developed under section 
        179A.07, subdivision 7.  Any modifications to the form approved 
        by the commission must be submitted to the legislature in the 
        same manner as compensation plans under subdivision 3. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        15A.081, subdivision 7b, is amended to read: 
           Subd. 7b.  [HIGHER EDUCATION OFFICERS.] The board of 
        trustees of the Minnesota state colleges and universities, state 
        university board, the state board for community colleges, the 
        state board of technical colleges, and the higher education 
        services office council shall set the salary rates for, 
        respectively, the chancellor of the higher education system, the 
        chancellor of the state universities, the chancellor of the 
        community colleges, the chancellor of vocational technical 
        education, Minnesota state colleges and universities and 
        the executive director of the higher education services office.  
        The respective board or the council shall submit the proposed 
        salary increase change to the legislative coordinating 
        commission for approval, modification, or rejection in the 
        manner provided in section 3.855.  The salary rates rate for the 
        positions specified in this subdivision chancellor of the 
        Minnesota state colleges and universities may not exceed 95 
        percent of the salary of the governor under section 15A.082, 
        subdivision 3.  For purposes of this subdivision, "the salary 
        rate of the chancellor" does not include: 
           (1) employee benefits that are also provided for the 
        majority of all other full-time state employees, vacation and 
        sick leave allowances, health and dental insurance, disability 
        insurance, term life insurance, and pension benefits or like 
        benefits the cost of which is borne by the employee or which is 
        not subject to tax as income under the Internal Revenue Code of 
        1986; 
           (2) dues paid to organizations that are of a civic, 
        professional, educational, or governmental nature; 
           (3) reimbursement for actual expenses incurred by the 
        employee that the appointing authority determines to be directly 
        related to the performance of job responsibilities, including 
        any relocation expenses paid during the initial year of 
        employment; or 
           (4) a housing allowance that is comparable to housing 
        allowances provided to chancellors and university presidents in 
        similar higher education systems nationwide.  
           The salary of the director of the higher education services 
        office may not exceed the maximum of the salary range for the 
        commissioner of administration.  In deciding whether to 
        recommend a salary increase, the governing board or council 
        shall consider the performance of the chancellor or director, 
        including the chancellor's or director's progress toward 
        attaining affirmative action goals. 
           Sec. 3.  Minnesota Statutes 1994, section 43A.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LENGTH OF SERVICE FOR STUDENT WORKERS.] A person 
        may not be employed as a student worker in the unclassified 
        service under subdivision 1 for more than 36 months.  Employment 
        at a school that a student attends is not counted for purposes 
        of this 36-month limit.  Student workers in the Minnesota 
        department of transportation SEEDS program who are actively 
        involved in a four-year degree program preparing for a 
        professional career job in the Minnesota department of 
        transportation may be employed as a student worker for up to 48 
        months. 
           Sec. 4.  Minnesota Statutes 1994, section 43A.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
        to 9, "salary" means hourly, monthly, or annual rate of pay 
        including any lump-sum payments and cost-of-living adjustment 
        increases but excluding payments due to overtime worked, shift 
        or equipment differentials, work out of class as required by 
        collective bargaining agreements or plans established under 
        section 43A.18, and back pay on reallocation or other payments 
        related to the hours or conditions under which work is performed 
        rather than to the salary range or rate to which a class is 
        assigned.  For presidents of state universities, "salary" does 
        not include a housing allowance provided through a compensation 
        plan approved under section 43A.18, subdivision 3a. 
           The salary, as established in section 15A.081, of the head 
        of a state agency in the executive branch is the upper limit of 
        compensation on the salaries of individual employees in the 
        agency.  The salary of the commissioner of labor and industry is 
        the upper limit of compensation salaries of employees in the 
        bureau of mediation services.  However, if an agency head is 
        assigned a salary that is lower than the current salary of 
        another agency employee, the employee retains the salary, but 
        may not receive an increase in salary as long as the salary is 
        above that of the agency head.  The commissioner may grant 
        exemptions from these upper limits as provided in subdivisions 3 
        and 4. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        43A.18, subdivision 2, is amended to read: 
           Subd. 2.  [UNREPRESENTED NONMANAGERIAL EMPLOYEE 
        COMMISSIONER'S PLAN.] Except as provided in section 43A.01, the 
        compensation, terms and conditions of employment for all 
        classified and unclassified employees, except unclassified 
        employees in the legislative and judicial branches, who are not 
        covered by a collective bargaining agreement and not otherwise 
        provided for in chapter 43A or other law are governed solely by 
        a plan developed by the commissioner.  The legislative 
        coordinating commission shall review and approve, reject, or 
        modify the plan under section 3.855, subdivision 2.  The plan 
        need not be adopted in accordance with the rulemaking provisions 
        of chapter 14.  
           Sec. 6.  [43A.1815] [VACATION DONATION TO SICK LEAVE 
        ACCOUNT.] 
           In addition to donations under section 43A.181, a state 
        employee may donate a total of up to 12 hours of accrued 
        vacation leave each fiscal year to the sick leave account of one 
        or more state employees.  A state employee may not be paid for 
        more than 80 hours in a payroll period during which the employee 
        uses sick leave credited to the employee's account as a result 
        of a transfer from another state employee's vacation account.  
        The commissioner shall establish procedures under section 
        43A.04, subdivision 4, for eligibility, duration of need based 
        on individual cases, monitoring and evaluation of individual 
        eligibility status, and other topics related to administration 
        of this program. 
           Sec. 7.  Minnesota Statutes 1994, section 179A.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONFIDENTIAL EMPLOYEE.] "Confidential employee" 
        means any an employee who as part of the employee's job duties:  
           (1) has access to labor relations information subject to 
        use by the public employer in meeting and negotiating as that 
        term is defined in section 13.37, subdivision 1, paragraph (c); 
        or 
           (2) actively participates in the meeting and negotiating on 
        behalf of the public employer.  
           However, for executive branch employees of the state or 
        employees of the regents of the University of Minnesota, 
        "confidential employee" means any employee who:  
           (a) has access to information subject to use by the public 
        employer in collective bargaining; or 
           (b) actively participates in collective bargaining on 
        behalf of the public employer. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        179A.04, subdivision 3, is amended to read: 
           Subd. 3.  [OTHER DUTIES.] (a) The commissioner shall:  
           (1) provide mediation services as requested by the parties 
        until the parties reach agreement, and may continue to assist 
        parties after they have submitted their final positions for 
        interest arbitration; 
           (2) issue notices, subpoenas, and orders required by law to 
        carry out duties under sections 179A.01 to 179A.25; 
           (3) assist the parties in formulating petitions, notices, 
        and other papers required to be filed with the commissioner; 
           (4) conduct elections; 
           (5) certify the final results of any election or other 
        voting procedure conducted under sections 179A.01 to 179A.25; 
           (6) adopt rules relating to the administration of this 
        chapter and the conduct of hearings and elections; 
           (7) receive, catalogue, file, and make available to the 
        public all decisions of arbitrators and panels authorized by 
        sections 179A.01 to 179A.25, all grievance arbitration 
        decisions, and the commissioner's orders and decisions; 
           (8) adopt, subject to chapter 14, a grievance procedure 
        that fulfills the purposes of section 179A.20, subdivision 4, 
        does not provide for the services of the bureau of mediation 
        services and is available to any employee in a unit not covered 
        by a contractual grievance procedure; 
           (9) maintain a schedule of state employee classifications 
        or positions assigned to each unit established in section 
        179A.10, subdivision 2; 
           (10) collect fees established by rule for empanelment of 
        persons on the labor arbitrator roster maintained by the 
        commissioner or in conjunction with fair share fee challenges; 
           (11) provide technical support and assistance to voluntary 
        joint labor-management committees established for the purpose of 
        improving relationships between exclusive representatives and 
        employers, at the discretion of the commissioner; 
           (12) provide to the parties a list of arbitrators as 
        required by section 179A.16, subdivision 4; and 
           (13) maintain a list of up to 60 arbitrators for referral 
        to employers and exclusive representatives for the resolution of 
        grievance or interest disputes.  Each person on the list must be 
        knowledgeable about collective bargaining and labor relations in 
        the public sector, well versed in state and federal labor law, 
        and experienced in and knowledgeable about labor arbitration.  
        To the extent practicable, the commissioner shall appoint 
        members to the list so that the list is gender and racially 
        diverse. 
           (b) The commissioner shall make available uniform baseline 
        determination documents and uniform collective bargaining 
        agreement settlement documents applicable to all negotiations 
        between exclusive representatives of appropriate units of public 
        employees and public employers other than townships and 
        prescribe procedures and instructions for completion of the 
        documents.  The commissioner shall, at a minimum, include these 
        individual elements in the uniform baseline determination 
        document:  the costs of any increases to the wage schedule; the 
        costs of employees moving through the wage schedule; costs of 
        medical insurance; costs of dental insurance; costs of life 
        insurance; lump sum payments; shift differentials; 
        extracurricular activities; longevity; employer contributions to 
        social security; employer contributions to state or local 
        retirement plans; and contributions to a deferred compensation 
        account.  The calculation of the base year must be based on an 
        annualization of the costs provided in the base year contract.  
        The documents must be in the same form as presented by the 
        commissioner to the legislative commission on employee relations 
        on February 17, 1994.  A completed uniform collective bargaining 
        agreement settlement document must be presented to the public 
        employer at the time it ratifies a collective bargaining 
        agreement and must be available afterward for inspection during 
        normal business hours at the principal administrative offices of 
        the public employer.  The commissioner shall provide training 
        and technical assistance to public employers who request it in 
        completing the uniform baseline determination documents and 
        uniform collective bargaining agreement settlement documents.  
        The commissioner shall at least annually inform public employers 
        of their obligations to complete and post these forms and to 
        submit copies of the completed forms to the legislative 
        commission on employee relations. 
           (c) From the names provided by representative 
        organizations, the commissioner shall maintain a list of 
        arbitrators to conduct teacher discharge or termination hearings 
        according to section 125.12 or 125.17.  The persons on the list 
        must meet at least one of the following requirements: 
           (1) be a former or retired judge; 
           (2) be a qualified arbitrator on the list maintained by the 
        bureau; 
           (3) be a present, former, or retired administrative law 
        judge; or 
           (4) be a neutral individual who is learned in the law and 
        admitted to practice in Minnesota, who is qualified by 
        experience to conduct these hearings, and who is without bias to 
        either party. 
           Each year, the Minnesota education association shall 
        provide a list of seven names, the Minnesota federation of 
        teachers a list of seven names, and the Minnesota school boards 
        association a list of 14 names of persons to be on the list.  
        The commissioner may adopt rules about maintaining and updating 
        the list. 
           Sec. 9.  Minnesota Statutes 1994, section 179A.07, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [UNIFORM SETTLEMENT FORM.] (a) A public employer, 
        other than a township, shall complete a uniform collective 
        bargaining agreement settlement document for each collective 
        bargaining agreement or arbitration award.  The public employer 
        shall: 
           (1) present the settlement document to the governing body 
        at the time it ratifies a collective bargaining agreement or 
        arbitration award; 
           (2) make the settlement document available afterward for 
        inspection during normal business hours at the principal 
        administrative offices of the public employer; and 
           (3) submit a copy of each settlement document to the 
        department of finance within ten days of the approval by the 
        governing body of the collective bargaining agreement or 
        arbitration award. 
           (b) The commissioner of finance shall make available 
        uniform baseline determination documents and uniform collective 
        bargaining agreement settlement documents applicable to all 
        negotiations between exclusive representatives of appropriate 
        units of public employees and public employers other than 
        townships and prescribe procedures and instructions for 
        completion of the documents.  The commissioner of finance shall, 
        at a minimum, include these individual elements in the uniform 
        baseline determination document:  the costs of any increases to 
        the wage schedule; the costs of employees moving through the 
        wage schedule; the costs of medical insurance; the costs of 
        dental insurance; the costs of life insurance; lump-sum 
        payments; shift differentials; extracurricular activities; 
        longevity; employer contributions to social security; employer 
        contributions to state or local retirement plans; and 
        contributions to a deferred compensation account.  The 
        calculation of the base year must be based on an annualization 
        of the costs provided in the base year contract.  The documents 
        must be in the same form as presented by the commissioner of the 
        bureau of mediation services to the legislative commission on 
        employee relations on February 17, 1994; however, the 
        legislative coordinating commission may modify the form as 
        provided in section 3.855, subdivision 4. 
           (c) The commissioner of finance shall provide training and 
        technical assistance to public employers who request it in 
        completing the uniform baseline determination documents and 
        uniform collective bargaining agreement settlement documents.  
        The commissioner of finance, at least annually, shall inform 
        public employers of their obligations to complete and post these 
        forms and to submit copies of the completed forms to the 
        department of finance. 
           Sec. 10.  [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 joint subcommittee on employee relations 
        on October 23, 1995, is ratified. 
           Subd. 2.  [ADMINISTRATIVE LAW JUDGES; OFFICE OF 
        ADMINISTRATIVE HEARINGS.] The compensation plan for 
        administrative law judges in the office of administrative 
        hearings, as modified and approved by the legislative 
        coordinating commission joint subcommittee on employee relations 
        on October 23, 1995, is ratified.  
           Subd. 3.  [UNREPRESENTED MANAGERS AND CHANCELLOR; MINNESOTA 
        STATE COLLEGES AND UNIVERSITIES.] The compensation plan for 
        excluded administrators of the Minnesota state colleges and 
        universities, as amended and approved by the legislative 
        commission on employee relations on June 7, 1995, is ratified.  
        The salary proposed by the board of trustees of the Minnesota 
        state colleges and universities for the chancellor, approved by 
        the legislative commission on employee relations on June 7, 
        1995, is ratified.  However, the housing allowance included in 
        the compensation plan for presidents of state universities is 
        not ratified. 
           Subd. 4.  [SUPERVISORS.] The labor agreement between the 
        state of Minnesota and the middle management association, 
        approved by the legislative coordinating commission joint 
        subcommittee on employee relations on December 11, 1995, is 
        ratified. 
           Subd. 5.  [ENGINEERS.] The labor agreement between the 
        state of Minnesota and the Minnesota government engineers 
        council, approved by the legislative coordinating commission 
        joint subcommittee on employee relations on December 11, 1995, 
        is ratified. 
           Subd. 6.  [COMMUNITY COLLEGE FACULTY.] The labor agreement 
        between the state of Minnesota and the Minnesota community 
        college faculty association, approved by the legislative 
        coordinating commission joint subcommittee on employee relations 
        on December 11, 1995, is ratified. 
           Subd. 7.  [NURSES.] The labor agreement between the state 
        of Minnesota and the Minnesota nurses association, approved by 
        the legislative coordinating commission joint subcommittee on 
        employee relations on December 11, 1995, is ratified. 
           Subd. 8.  [HIGHER EDUCATION SERVICES OFFICE DIRECTOR.] The 
        proposed salary of the director of the higher education services 
        office, as modified and approved by the legislative coordinating 
        commission joint subcommittee on employee relations on December 
        11, 1995, is ratified. 
           Subd. 9.  [SPECIAL TEACHERS.] The labor agreement between 
        the state of Minnesota and the state residential schools 
        education association, approved by the legislative coordinating 
        commission joint subcommittee on employee relations on January 
        12, 1996, is ratified. 
           Subd. 10.  [LAW ENFORCEMENT.] The labor agreement between 
        the state of Minnesota and the Minnesota law enforcement 
        association, approved by the legislative coordinating commission 
        joint subcommittee on employee relations on January 12, 1996, is 
        ratified. 
           Subd. 11.  [STATE UNIVERSITY ADMINISTRATIVE AND SERVICE 
        FACULTY.] The labor agreement between the state of Minnesota and 
        the Minnesota state university association of administrative and 
        service faculty, approved by the legislative coordinating 
        commission joint subcommittee on employee relations on January 
        12, 1996, is ratified. 
           Subd. 12.  [PROFESSIONAL EMPLOYEES.] The labor agreement 
        between the state of Minnesota and the Minnesota association of 
        professional employees, approved by the legislative coordinating 
        commission joint subcommittee on employee relations on January 
        12, 1996, is ratified. 
           Subd. 13.  [MANAGERIAL PLAN.] The plan for managerial 
        employees, as amended and approved by the legislative 
        coordinating commission joint subcommittee on employee relations 
        on January 12, 1996, is ratified. 
           Subd. 14.  [UNREPRESENTED, UNCLASSIFIED EMPLOYEES; HIGHER 
        EDUCATION SERVICES OFFICE.] The plan for unrepresented, 
        unclassified employees of the higher education services office, 
        as approved by the legislative coordinating commission joint 
        subcommittee on employee relations on January 12, 1996, is 
        ratified. 
           Subd. 15.  [COMMISSIONER'S PLAN.] The commissioner's plan, 
        as amended and approved by the legislative coordinating 
        commission joint subcommittee on employee relations on January 
        12, 1996, is ratified. 
           Sec. 11.  [LEGISLATIVE COMMISSIONS CEASING OPERATIONS ON 
        JULY 1, 1996; EMPLOYEE ELIGIBILITY FOR COMPETITIVE PROMOTIONAL 
        EXAMS.] 
           An employee of a legislative commission that ceases 
        operations on July 1, 1996, pursuant to Laws 1995, chapter 248, 
        article 2, section 6, is eligible until January 1, 1997, for 
        participation in competitive promotional examinations under 
        Minnesota Statutes, section 43A.10, subdivision 6. 
           Sec. 12.  [APPROPRIATION.] 
           $50,000 is appropriated to the commissioner of finance for 
        the purpose of carrying out section 9. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Sections 2 to 7 and 10 are effective the day following 
        final enactment.  Sections 1, 8, 9, 11, and 12 are effective 
        July 1, 1996. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 2, 1996, 1:00 p.m.

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