1.1                          A bill for an act 
  1.2             relating to state government; transferring certain 
  1.3             duties of the Minnesota Zoological Board to the 
  1.4             Minnesota Zoo Foundation; amending Minnesota Statutes 
  1.5             2002, section 85A.02, subdivision 5a; Minnesota 
  1.6             Statutes 2003 Supplement, sections 43A.24, subdivision 
  1.7             2; 352D.02, subdivision 1; proposing coding for new 
  1.8             law in Minnesota Statutes, chapter 85A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.11  43A.24, subdivision 2, is amended to read: 
  1.12     Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
  1.13  are eligible for state paid life insurance and hospital, 
  1.14  medical, and dental benefits as determined in applicable 
  1.15  collective bargaining agreements or by the commissioner or by 
  1.16  plans pursuant to section 43A.18, subdivision 6, or by the Board 
  1.17  of Regents for employees of the University of Minnesota not 
  1.18  covered by collective bargaining agreements.  Coverages made 
  1.19  available, including optional coverages, are as contained in the 
  1.20  plan established pursuant to section 43A.18, subdivision 2: 
  1.21     (a) a member of the state legislature, provided that 
  1.22  changes in benefits resulting in increased costs to the state 
  1.23  shall not be effective until expiration of the term of the 
  1.24  members of the existing house of representatives.  An eligible 
  1.25  member of the state legislature may decline to be enrolled for 
  1.26  state paid coverages by filing a written waiver with the 
  1.27  commissioner.  The waiver shall not prohibit the member from 
  2.1   enrolling the member or dependents for optional coverages, 
  2.2   without cost to the state, as provided for in section 43A.26.  A 
  2.3   member of the state legislature who returns from a leave of 
  2.4   absence to a position previously occupied in the civil service 
  2.5   shall be eligible to receive the life insurance and hospital, 
  2.6   medical, and dental benefits to which the position is entitled; 
  2.7      (b) an employee of the legislature or an employee of a 
  2.8   permanent study or interim committee or commission or a state 
  2.9   employee on leave of absence to work for the legislature, during 
  2.10  a regular or special legislative session, as determined by the 
  2.11  Legislative Coordinating Commission; 
  2.12     (c) a judge of the appellate courts or an officer or 
  2.13  employee of these courts; a judge of the district court, a judge 
  2.14  of county court, or a judge of county municipal court; a 
  2.15  district court referee, judicial officer, court reporter, or law 
  2.16  clerk; a district administrator; an employee of the Office of 
  2.17  the District Administrator that is not in the Second or Fourth 
  2.18  Judicial District; a court administrator or employee of the 
  2.19  court administrator in a judicial district under section 
  2.20  480.181, subdivision 1, paragraph (b), and a guardian ad litem 
  2.21  program employee; 
  2.22     (d) a salaried employee of the Public Employees Retirement 
  2.23  Association; 
  2.24     (e) a full-time military or civilian officer or employee in 
  2.25  the unclassified service of the Department of Military Affairs 
  2.26  whose salary is paid from state funds; 
  2.27     (f) a salaried employee of the Minnesota Historical 
  2.28  Society, whether paid from state funds or otherwise, who is not 
  2.29  a member of the governing board; 
  2.30     (g) an employee of the regents of the University of 
  2.31  Minnesota; 
  2.32     (h) notwithstanding section 43A.27, subdivision 3, an 
  2.33  employee of the state of Minnesota or the regents of the 
  2.34  University of Minnesota who is at least 60 and not yet 65 years 
  2.35  of age on July 1, 1982, who is otherwise eligible for employee 
  2.36  and dependent insurance and benefits pursuant to section 43A.18 
  3.1   or other law, who has at least 20 years of service and retires, 
  3.2   earlier than required, within 60 days of March 23, 1982; or an 
  3.3   employee who is at least 60 and not yet 65 years of age on July 
  3.4   1, 1982, who has at least 20 years of state service and retires, 
  3.5   earlier than required, from employment at Rochester state 
  3.6   hospital after July 1, 1981; or an employee who is at least 55 
  3.7   and not yet 65 years of age on July 1, 1982, and is covered by 
  3.8   the Minnesota State Retirement System correctional employee 
  3.9   retirement plan or the State Patrol retirement fund, who has at 
  3.10  least 20 years of state service and retires, earlier than 
  3.11  required, within 60 days of March 23, 1982.  For purposes of 
  3.12  this clause, a person retires when the person terminates active 
  3.13  employment in state or University of Minnesota service and 
  3.14  applies for a retirement annuity.  Eligibility shall cease when 
  3.15  the retired employee attains the age of 65, or when the employee 
  3.16  chooses not to receive the annuity that the employee has applied 
  3.17  for.  The retired employee shall be eligible for coverages to 
  3.18  which the employee was entitled at the time of retirement, 
  3.19  subject to any changes in coverage through collective bargaining 
  3.20  or plans established pursuant to section 43A.18, for employees 
  3.21  in positions equivalent to that from which retired, provided 
  3.22  that the retired employee shall not be eligible for state-paid 
  3.23  life insurance.  Coverages shall be coordinated with relevant 
  3.24  health insurance benefits provided through the federally 
  3.25  sponsored Medicare program; 
  3.26     (i) an employee of an agency of the state of Minnesota 
  3.27  identified through the process provided in this paragraph who is 
  3.28  eligible to retire prior to age 65.  The commissioner and the 
  3.29  exclusive representative of state employees shall enter into 
  3.30  agreements under section 179A.22 to identify employees whose 
  3.31  positions are in programs that are being permanently eliminated 
  3.32  or reduced due to federal or state policies or practices.  
  3.33  Failure to reach agreement identifying these employees is not 
  3.34  subject to impasse procedures provided in chapter 179A.  The 
  3.35  commissioner must prepare a plan identifying eligible employees 
  3.36  not covered by a collective bargaining agreement in accordance 
  4.1   with the process outlined in section 43A.18, subdivisions 2 and 
  4.2   3.  For purposes of this paragraph, a person retires when the 
  4.3   person terminates active employment in state service and applies 
  4.4   for a retirement annuity.  Eligibility ends as provided in the 
  4.5   agreement or plan, but must cease at the end of the month in 
  4.6   which the retired employee chooses not to receive an annuity, or 
  4.7   the employee is eligible for employer-paid health insurance from 
  4.8   a new employer.  The retired employees shall be eligible for 
  4.9   coverages to which they were entitled at the time of retirement, 
  4.10  subject to any changes in coverage through collective bargaining 
  4.11  or plans established under section 43A.18 for employees in 
  4.12  positions equivalent to that from which they retired, provided 
  4.13  that the retired employees shall not be eligible for state-paid 
  4.14  life insurance; 
  4.15     (j) employees of the state Board of Public Defense, with 
  4.16  eligibility determined by the state Board of Public Defense in 
  4.17  consultation with the commissioner of employee relations; ~~and~~ 
  4.18     (k) employees of supporting organizations of Minnesota 
  4.19  Technology, Inc., established after July 1, 2003, under section 
  4.20  116O.05, subdivision 4, as paid for by the supporting 
  4.21  organization; and 
  4.22     (l) employees of the Minnesota Zoo Foundation under section 
  4.23  85A.06. 
  4.24     Sec. 2.  Minnesota Statutes 2002, section 85A.02, 
  4.25  subdivision 5a, is amended to read: 
  4.26     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
  4.27  administrator who shall serve as the executive secretary and 
  4.28  principal administrative officer of the board and, subject to 
  4.29  its approval, shall operate the Minnesota Zoological Garden and 
  4.30  enforce all rules and policy decisions of the board.  The 
  4.31  administrator must be chosen solely on the basis of training, 
  4.32  experience, and other qualifications appropriate to the field of 
  4.33  zoo management and development.  The board shall set the salary 
  4.34  of the administrator.  The salary of the administrator may not 
  4.35  exceed 130 percent of the salary of the governor; however, any 
  4.36  amount exceeding 95 percent of the salary of the governor must 
  5.1   consist of nonstate funds.  The administrator shall perform 
  5.2   duties assigned by the board and serves in the unclassified 
  5.3   service at the pleasure of the board.  The administrator, with 
  5.4   the participation of the board, ~~shall appoint a development~~ 
  5.5   ~~director in the unclassified service or~~ may contract with ~~a~~ 
  5.6   ~~development consultant~~ the Minnesota Zoo Foundation to establish 
  5.7   mechanisms to foster community participation in and community 
  5.8   support for the Minnesota Zoological Garden.  The board may 
  5.9   employ other necessary professional, technical, and clerical 
  5.10  personnel.  Employees of the zoological garden are eligible for 
  5.11  salary supplement in the same manner as employees of other state 
  5.12  agencies.  The commissioner of finance shall determine the 
  5.13  amount of salary supplement based on available funds. 
  5.14     (b) The board may contract with individuals to perform 
  5.15  professional services and may contract for the purchases of 
  5.16  necessary species exhibits, supplies, services, and equipment. 
  5.17  The board may also contract for the construction and operation 
  5.18  of entertainment facilities on the zoo grounds that are not 
  5.19  directly connected to ordinary functions of the zoological 
  5.20  garden.  The zoo board may not enter into a final agreement for 
  5.21  construction of an entertainment facility that is not directly 
  5.22  connected to the ordinary functions of the zoo until after final 
  5.23  construction plans have been submitted to the chairs of the 
  5.24  senate finance and house appropriations committees for their 
  5.25  recommendations. 
  5.26     The zoo may not contract for entertainment during the 
  5.27  period of the Minnesota State Fair that would directly compete 
  5.28  with entertainment at the Minnesota State Fair. 
  5.29     Sec. 3.  [85A.06] [MINNESOTA ZOO FOUNDATION.] 
  5.30     Subdivision 1.  [TRANSFER.] (a) The development office of 
  5.31  the board is transferred to the Minnesota Zoo Foundation, a 
  5.32  nonprofit corporation under section 501(c)(3) of the Internal 
  5.33  Revenue Code of 1986, as amended.  Section 15.039, subdivisions 
  5.34  2, 4, 5, 5a, and 8 apply to the transfer.  Section 15.039, 
  5.35  subdivisions 3, 6, and 7, do not apply.  For the purposes of 
  5.36  that section, "new agency" means the Minnesota Zoo Foundation.  
  6.1      (b) The expenditure of state funds by the Minnesota Zoo 
  6.2   Foundation is subject to audit by the legislative auditor and 
  6.3   regular annual report to the house of representatives and senate 
  6.4   committees with jurisdiction over environment and natural 
  6.5   resources policy and finance. 
  6.6      Subd. 2.  [STAFF.] Staff employed by the Minnesota Zoo 
  6.7   Foundation are not state employees, but, at the option of the 
  6.8   foundation trustees, and at the expense of the foundation or its 
  6.9   staff, may participate in the state retirement program for 
  6.10  unclassified employees and the state deferred compensation and 
  6.11  insurance plans.  The foundation must pay the costs ordinarily 
  6.12  paid by the state for its employees who participate in those 
  6.13  plans. 
  6.14     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  6.15  352D.02, subdivision 1, is amended to read: 
  6.16     Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
  6.17  paragraph (c), clauses (2), (3), (4), and (6) to (14), if they 
  6.18  are in the unclassified service of the state or Metropolitan 
  6.19  Council and are eligible for coverage under the general state 
  6.20  employees retirement plan under chapter 352, are participants in 
  6.21  the unclassified plan under this chapter unless the employee 
  6.22  gives notice to the executive director of the Minnesota State 
  6.23  Retirement System within one year following the commencement of 
  6.24  employment in the unclassified service that the employee desires 
  6.25  coverage under the general state employees retirement plan.  For 
  6.26  the purposes of this chapter, an employee who does not file 
  6.27  notice with the executive director is deemed to have exercised 
  6.28  the option to participate in the unclassified plan. 
  6.29     (b) Persons referenced in paragraph (c), clauses (1) and 
  6.30  (5), are participants in the unclassified program under this 
  6.31  chapter unless the person is eligible to elect different 
  6.32  coverage under section 3A.07 or 352C.011 and, after July 1, 
  6.33  1998, elects retirement coverage by the applicable alternative 
  6.34  retirement plan.  Persons referenced in paragraph (c), clause 
  6.35  (15), are participants in the unclassified program under this 
  6.36  chapter for judicial employment in excess of the service credit 
  7.1   limit in section 490.121, subdivision 22. 
  7.2      (c) Enumerated employees and referenced persons are: 
  7.3      (1) the governor, the lieutenant governor, the secretary of 
  7.4   state, the state auditor, and the attorney general; 
  7.5      (2) an employee in the Office of the Governor, Lieutenant 
  7.6   Governor, Secretary of State, State Auditor, Attorney General; 
  7.7      (3) an employee of the State Board of Investment; 
  7.8      (4) the head of a department, division, or agency created 
  7.9   by statute in the unclassified service, an acting department 
  7.10  head subsequently appointed to the position, or an employee 
  7.11  enumerated in section 15A.0815 or 15A.083, subdivision 4; 
  7.12     (5) a member of the legislature; 
  7.13     (6) a full-time unclassified employee of the legislature or 
  7.14  a commission or agency of the legislature who is appointed 
  7.15  without a limit on the duration of the employment or a temporary 
  7.16  legislative employee having shares in the supplemental 
  7.17  retirement fund as a result of former employment covered by this 
  7.18  chapter, whether or not eligible for coverage under the 
  7.19  Minnesota State Retirement System; 
  7.20     (7) a person who is employed in a position established 
  7.21  under section 43A.08, subdivision 1, clause (3), or in a 
  7.22  position authorized under a statute creating or establishing a 
  7.23  department or agency of the state, which is at the deputy or 
  7.24  assistant head of department or agency or director level; 
  7.25     (8) the regional administrator, or executive director of 
  7.26  the Metropolitan Council, general counsel, division directors, 
  7.27  operations managers, and other positions as designated by the 
  7.28  council, all of which may not exceed 27 positions at the council 
  7.29  and the chair; 
  7.30     (9) the executive director, associate executive director, 
  7.31  and not to exceed nine positions of the Higher Education 
  7.32  Services Office in the unclassified service, as designated by 
  7.33  the Higher Education Services Office before January 1, 1992, or 
  7.34  subsequently redesignated with the approval of the board of 
  7.35  directors of the Minnesota State Retirement System, unless the 
  7.36  person has elected coverage by the individual retirement account 
  8.1   plan under chapter 354B; 
  8.2      (10) the clerk of the appellate courts appointed under 
  8.3   article VI, section 2, of the Constitution of the state of 
  8.4   Minnesota; 
  8.5      (11) the chief executive officers of correctional 
  8.6   facilities operated by the Department of Corrections and of 
  8.7   hospitals and nursing homes operated by the Department of Human 
  8.8   Services; 
  8.9      (12) an employee whose principal employment is at the state 
  8.10  ceremonial house; 
  8.11     (13) an employee of the Minnesota Educational Computing 
  8.12  Corporation; 
  8.13     (14) an employee of the State Lottery who is covered by the 
  8.14  managerial plan established under section 43A.18, subdivision 3; 
  8.15  ~~and~~ 
  8.16     (15) a judge who has exceeded the service credit limit in 
  8.17  section 490.121, subdivision 22; and 
  8.18     (16) an employee of the Minnesota Zoo Foundation. 
  8.19     Sec. 5.  [EFFECTIVE DATE.] 
  8.20     This act is effective July 1, 2004.