1.1                          A bill for an act 
  1.2             relating to state employees; modifying certain duties 
  1.3             of the legislative coordinating commission; modifying 
  1.4             the expense allowance for certain agency heads; 
  1.5             providing procedures for setting salaries of certain 
  1.6             agency heads; limiting the salary of the chancellor of 
  1.7             Minnesota state colleges and universities; limiting 
  1.8             the salaries of certain agency heads and certain state 
  1.9             employees; excluding housing allowance for presidents 
  1.10            of state universities from salary; modifying salary 
  1.11            limit waivers; modifying statutory language; amending 
  1.12            Minnesota Statutes 1994, sections 15A.081, subdivision 
  1.13            8; 43A.17, subdivisions 1, 3, and by adding a 
  1.14            subdivision; 85A.02, subdivision 5a; and 298.22, 
  1.15            subdivision 1; Minnesota Statutes 1995 Supplement, 
  1.16            section 3.855, subdivision 3; proposing coding for new 
  1.17            law in Minnesota Statutes, chapter 15A; repealing 
  1.18            Minnesota Statutes 1995 Supplement, section 15A.081, 
  1.19            subdivisions 1 and 7. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.22  3.855, subdivision 3, is amended to read: 
  1.23     Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
  1.24  commission shall also: 
  1.25     (1) review and approve, reject, or modify recommendations 
  1.26  of the commissioner of employee relations for increasing salary 
  1.27  rates under section 43A.17, subdivision 3a; 
  1.28     (2) review and approve, reject, or modify a plan for 
  1.29  compensation and terms and conditions of employment prepared and 
  1.30  submitted by the commissioner of employee relations under 
  1.31  section 43A.18, subdivision 2, covering all state employees who 
  1.32  are not represented by an exclusive bargaining representative 
  2.1   and whose compensation is not provided for by chapter 43A or 
  2.2   other law; 
  2.3      ~~(2)~~ (3) review and approve, reject, or modify a plan for 
  2.4   total compensation and terms and conditions of employment for 
  2.5   employees in positions identified as being managerial under 
  2.6   section 43A.18, subdivision 3, whose salaries and benefits are 
  2.7   not otherwise provided for in law or other plans established 
  2.8   under chapter 43A; and 
  2.9      ~~(3) review and approve, reject, or modify recommendations~~ 
  2.10  ~~for salaries submitted by the governor under section 43A.18,~~ 
  2.11  ~~subdivision 5, covering agency head positions listed in section~~ 
  2.12  ~~15A.081;~~ 
  2.13     ~~(4) review and approve, reject, or modify recommendations~~ 
  2.14  ~~for salaries of officials of higher education systems under~~ 
  2.15  ~~section 15A.081, subdivision 7b; and~~ 
  2.16     ~~(5)~~ (4) review and approve, reject, or modify plans for 
  2.17  compensation, terms, and conditions of employment proposed under 
  2.18  section 43A.18, subdivisions 3a and 4. 
  2.19     Sec. 2.  Minnesota Statutes 1994, section 15A.081, 
  2.20  subdivision 8, is amended to read: 
  2.21     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
  2.22  the contrary, positions listed in ~~subdivision 1,~~ section 
  2.23  15A.0815, subdivisions 3 and 4, and constitutional officers~~, and~~ 
  2.24  ~~the commissioner of iron range resources and rehabilitation~~ are 
  2.25  authorized an annual expense allowance not to exceed $1,500 for 
  2.26  necessary expenses in the normal performance of their duties for 
  2.27  which no other reimbursement is provided.  The expenditures 
  2.28  under this subdivision are subject to any laws and rules 
  2.29  relating to budgeting, allotment and encumbrance, preaudit and 
  2.30  postaudit.  The commissioner of finance may ~~promulgate~~ adopt 
  2.31  rules to assure the proper expenditure of these funds, and to 
  2.32  provide for reimbursement. 
  2.33     Sec. 3.  [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 
  2.34     Subdivision 1.  [SALARY LIMITS.] For purpose of 
  2.35  subdivisions 2 to 4, the governor's salary is as established 
  2.36  under section 15A.082. 
  3.1      The appointing authority, as defined in section 43A.02, 
  3.2   subdivision 5, must establish salaries for the positions within 
  3.3   the prescribed limits as specified in subdivisions 2 to 5.  In 
  3.4   establishing individual salaries, the appointing authority shall 
  3.5   consider the criteria established in section 43A.18, subdivision 
  3.6   8, and the performance of individual incumbents.  The 
  3.7   performances evaluation must include a review of an incumbent's 
  3.8   progress toward attainment of affirmative action goals.  If the 
  3.9   appointing authority is not the governor, the salary proposed by 
  3.10  the appointing authority is not effective unless approved by the 
  3.11  commissioner of employee relations. 
  3.12     The appointing authority must set the initial salary of a 
  3.13  head of a new agency or a chair of a new metropolitan board or 
  3.14  commission whose salary is not specifically prescribed by law.  
  3.15  If the appointing authority is not the governor, the salary 
  3.16  proposed by the appointing authority is not effective unless 
  3.17  approved by the commissioner of employee relations.  The amount 
  3.18  of the new salary must be comparable to the salary of an agency 
  3.19  head or commission chair having similar duties and 
  3.20  responsibilities. 
  3.21     Subd. 2.  [HIGHER EDUCATION SYSTEM LIMITS.] The salary of 
  3.22  the chancellor of Minnesota state colleges and universities may 
  3.23  not exceed 95 percent of the salary of the governor.  For 
  3.24  purposes of this subdivision, "salary" does not include: 
  3.25     (1) employee benefits that are also provided for the 
  3.26  majority of all other full-time state employees, vacation and 
  3.27  sick leave allowances, health and dental insurance, disability 
  3.28  insurance, term life insurance, and pension benefits or like 
  3.29  benefits, the cost of which is borne by the employee or which is 
  3.30  not subject to tax as income under the Internal Revenue Code of 
  3.31  1986; 
  3.32     (2) dues paid to organizations that are of a civic, 
  3.33  professional, educational, or governmental nature; 
  3.34     (3) reimbursements for actual expenses incurred by the 
  3.35  employee that the appointing authority determines to be directly 
  3.36  related to the performance of job responsibilities, including 
  4.1   any relocation expenses paid during the initial year of 
  4.2   employment; or 
  4.3      (4) a housing allowance that is comparable to housing 
  4.4   allowances provided to chancellors and university presidents in 
  4.5   similar higher education systems nationwide. 
  4.6      Subd. 3.  [GROUP I SALARY LIMITS.] The salaries for 
  4.7   positions in this subdivision may not exceed 85 percent of the 
  4.8   salary of the governor: 
  4.9      Commissioner of administration; 
  4.10     Commissioner of agriculture; 
  4.11     Commissioner of commerce; 
  4.12     Commissioner of corrections; 
  4.13     Commissioner of economic security; 
  4.14     Commissioner of education; 
  4.15     Commissioner of employee relations; 
  4.16     Commissioner of finance; 
  4.17     Commissioner of health; 
  4.18     Executive director, higher education services office; 
  4.19     Commissioner, housing finance agency; 
  4.20     Commissioner of human rights; 
  4.21     Commissioner of human services; 
  4.22     Executive director, state board of investment; 
  4.23     Commissioner of labor and industry; 
  4.24     Commissioner of natural resources; 
  4.25     Commissioner of office of strategic and long-range 
  4.26  planning; 
  4.27     Commissioner, pollution control agency; 
  4.28     Commissioner of public safety; 
  4.29     Commissioner, department of public services; 
  4.30     Commissioner of revenue; 
  4.31     Commissioner of trade and economic development; 
  4.32     Commissioner of transportation; 
  4.33     Commissioner of veterans affairs; 
  4.34     Administrator of zoological gardens. 
  4.35     Subd. 4.  [GROUP II SALARY LIMITS.] The salaries for 
  4.36  positions in this subdivision may not exceed 75 percent of the 
  5.1   salary of the governor: 
  5.2      Ombudsman for corrections; 
  5.3      Director of office of environmental assistance; 
  5.4      Executive director of gambling control board; 
  5.5      Commissioner of iron range resources and rehabilitation 
  5.6   board; 
  5.7      Commissioner, bureau of mediation services; 
  5.8      Ombudsman for mental health and retardation; 
  5.9      Executive director for pari-mutuel racing; 
  5.10     Executive director, public employees retirement 
  5.11  association; 
  5.12     Commissioner, public utilities commission; 
  5.13     Executive director, state retirement system; 
  5.14     Executive director, teachers retirement association. 
  5.15     Subd. 5.  [GROUP III SALARY LIMITS.] The salary for a 
  5.16  position in this subdivision may not exceed 25 percent of the 
  5.17  salary of the governor: 
  5.18     Chair, metropolitan airports commission. 
  5.19     Sec. 4.  Minnesota Statutes 1994, section 43A.17, 
  5.20  subdivision 1, is amended to read: 
  5.21     Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
  5.22  to 9, "salary" means hourly, monthly, or annual rate of pay 
  5.23  including any lump-sum payments and cost-of-living adjustment 
  5.24  increases but excluding payments due to overtime worked, shift 
  5.25  or equipment differentials, work out of class as required by 
  5.26  collective bargaining agreements or plans established under 
  5.27  section 43A.18, and back pay on reallocation or other payments 
  5.28  related to the hours or conditions under which work is performed 
  5.29  rather than to the salary range or rate to which a class is 
  5.30  assigned.  For presidents of state universities, "salary" does 
  5.31  not include a housing allowance provided through a compensation 
  5.32  plan approved under section 43A.18, subdivision 3a. 
  5.33     The salary, as established in section ~~15A.081~~ 15A.0815, of 
  5.34  the head of a state agency in the executive branch is the upper 
  5.35  limit of compensation in the agency.  The salary of the 
  5.36  commissioner of labor and industry is the upper limit of 
  6.1   compensation of employees in the bureau of mediation 
  6.2   services and is the upper limit for salaries of the 
  6.3   commissioners of the public utilities commission.  However, if 
  6.4   an agency head is assigned a salary that is lower than the 
  6.5   current salary of another agency employee, the employee retains 
  6.6   the salary, but may not receive an increase in salary as long as 
  6.7   the salary is above that of the agency head.  The commissioner 
  6.8   may grant exemptions from these upper limits as provided in 
  6.9   subdivisions ~~3~~ 3a and 4. 
  6.10     Sec. 5.  Minnesota Statutes 1994, section 43A.17, 
  6.11  subdivision 3, is amended to read: 
  6.12     Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 
  6.13  of the appointing authority, and when the commissioner 
  6.14  determines that changes in employment situations create 
  6.15  difficulties in attracting or retaining employees, the 
  6.16  commissioner may approve an unusual employment situation 
  6.17  increase to advance an employee within the compensation plan.  
  6.18  Such action will be consistent with applicable provisions of 
  6.19  collective bargaining agreements or plans pursuant to section 
  6.20  43A.18.  The commissioner shall review each proposal giving due 
  6.21  consideration to salary rates paid to other employees in the 
  6.22  same class and agency and may approve any request which in the 
  6.23  commissioner's judgment is in the best interest of the 
  6.24  state.  ~~If the commissioner determines that the position~~ 
  6.25  ~~requires special expertise necessitating a higher salary to~~ 
  6.26  ~~attract or retain qualified persons, the commissioner may grant~~ 
  6.27  ~~an exemption not to exceed 120 percent of the base salary of the~~ 
  6.28  ~~head of the agency.~~  
  6.29     Sec. 6.  Minnesota Statutes 1994, section 43A.17, is 
  6.30  amended by adding a subdivision to read: 
  6.31     Subd. 3a.  [SALARY LIMIT WAIVERS.] The commissioner may 
  6.32  increase the limitation for a position that the commissioner has 
  6.33  determined requires special expertise necessitating a higher 
  6.34  salary to attract or retain a qualified person.  The 
  6.35  commissioner shall review each proposed increase giving due 
  6.36  consideration to salary rates paid to other persons with similar 
  7.1   responsibilities in the state and nation.  The commissioner may 
  7.2   not increase the limitation until the increase has been approved 
  7.3   by the legislative commission on employee relations under 
  7.4   section 3.855, subdivisions 2 and 3. 
  7.5      Sec. 7.  Minnesota Statutes 1994, section 85A.02, 
  7.6   subdivision 5a, is amended to read: 
  7.7      Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
  7.8   administrator who shall serve as the executive secretary and 
  7.9   principal administrative officer of the board and, subject to 
  7.10  its approval, ~~the administrator~~ shall operate the Minnesota 
  7.11  zoological garden and enforce all rules and policy decisions of 
  7.12  the board.  The administrator must be chosen solely on the basis 
  7.13  of training, experience, and other qualifications appropriate to 
  7.14  the field of zoo management and development.  ~~The board shall~~ 
  7.15  ~~set the compensation for the administrator within the limits~~ 
  7.16  ~~established for the commissioner of agriculture in section~~ 
  7.17  ~~15A.081, subdivision 1.~~  The administrator shall perform duties 
  7.18  assigned by the board and ~~shall serve~~ serves in the unclassified 
  7.19  service at the pleasure of the board.  The administrator, with 
  7.20  the participation of the board, shall appoint a development 
  7.21  director in the unclassified service or contract with a 
  7.22  development consultant to establish mechanisms to foster 
  7.23  community participation in and community support for the 
  7.24  Minnesota zoological garden.  The board may employ other 
  7.25  necessary professional, technical, and clerical personnel.  
  7.26  Employees of the zoological garden are eligible for salary 
  7.27  supplement in the same manner as employees of other state 
  7.28  agencies.  The commissioner of finance shall determine the 
  7.29  amount of salary supplement based on available funds. 
  7.30     (b) The board may contract with individuals to perform 
  7.31  professional services and may contract for the purchases of 
  7.32  necessary species exhibits, supplies, services, and equipment. 
  7.33  The board may also contract for the construction and operation 
  7.34  of entertainment facilities on the zoo grounds that are not 
  7.35  directly connected to ordinary functions of the zoological 
  7.36  garden.  The zoo board ~~shall~~ may not enter into ~~any~~ a final 
  8.1   agreement for construction of ~~any~~ an entertainment facility that 
  8.2   is not directly connected to the ordinary functions of the zoo 
  8.3   until after final construction plans have been submitted to the 
  8.4   chairs of the senate finance and house appropriations committees 
  8.5   for their recommendations. 
  8.6      The zoo may not contract for entertainment during the 
  8.7   period of the Minnesota state fair that would directly compete 
  8.8   with entertainment at the Minnesota state fair. 
  8.9      Sec. 8.  Minnesota Statutes 1994, section 298.22, 
  8.10  subdivision 1, is amended to read: 
  8.11     Subdivision 1.  (1) The ~~office of~~ governor shall appoint 
  8.12  the commissioner of iron range resources and rehabilitation ~~is~~ 
  8.13  ~~created.  The commissioner shall be appointed by the governor~~ 
  8.14  under ~~the provisions of~~ section 15.06. 
  8.15     (2) The commissioner may hold ~~such~~ other positions or 
  8.16  appointments ~~as~~ that are not incompatible with duties as 
  8.17  commissioner of iron range resources and rehabilitation.  The 
  8.18  commissioner may appoint a deputy commissioner.  All expenses of 
  8.19  the commissioner, including the payment of such assistance as 
  8.20  may be necessary, ~~shall~~ must be paid out of the amounts 
  8.21  appropriated by section 298.28.  ~~The compensation of the~~ 
  8.22  ~~commissioner shall be set by the legislative coordinating~~ 
  8.23  ~~commission and may not exceed the maximum salary set for the~~ 
  8.24  ~~commissioner of administration under section 15A.081,~~ 
  8.25  ~~subdivision 1.~~  
  8.26     (3) When the commissioner ~~shall determine~~ determines that 
  8.27  distress and unemployment exists or may exist in the future in 
  8.28  any county by reason of the removal of natural resources or a 
  8.29  possibly limited use ~~thereof~~ of natural resources in the future 
  8.30  and ~~the~~ any resulting decrease in employment ~~resulting~~ 
  8.31  ~~therefrom, now or hereafter~~, the commissioner may use 
  8.32  ~~such~~ whatever amounts of the appropriation made to the 
  8.33  commissioner of revenue in section 298.28 ~~as~~ that are determined 
  8.34  to be necessary and proper in the development of the remaining 
  8.35  resources of ~~said~~ the county and in the vocational training and 
  8.36  rehabilitation of its residents, except that the amount needed 
  9.1   to cover cost overruns awarded to a contractor by an arbitrator 
  9.2   in relation to a contract awarded by the commissioner or in 
  9.3   effect after July 1, 1985, is appropriated from the general 
  9.4   fund.  For the purposes of this section, "development of 
  9.5   remaining resources" includes, but is not limited to, the 
  9.6   promotion of tourism.  
  9.7      Sec. 9.  [INSTRUCTION TO REVISOR.] 
  9.8      The revisor of statutes shall renumber cross-references to 
  9.9   Minnesota Statutes, section 15A.081, subdivision 1, as section 
  9.10  15A.0815, subdivisions 3 and 4; and section 15A.081, subdivision 
  9.11  7, as section 15A.0815, subdivision 5. 
  9.12     Sec. 10.  [REPEALER.] 
  9.13     Minnesota Statutes 1995 Supplement, section 15A.081, 
  9.14  subdivisions 1 and 7, are repealed. 
  9.15     Sec. 11.  [EFFECTIVE DATE.] 
  9.16     Sections 1 to 9 are effective retroactive to July 1, 1995.