1.1                          A bill for an act 
  1.2             relating to state employment; modifying legislative 
  1.3             employment provisions; amending Minnesota Statutes 
  1.4             1998, sections 3.07; 3.09; 3.095; and 352D.02, 
  1.5             subdivisions 1 and 1c; Minnesota Statutes 1999 
  1.6             Supplement, sections 3.096; and 43A.24, subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 3.07, is 
  1.9   amended to read: 
  1.10     3.07 [ADDITIONAL EMPLOYEES.] 
  1.11     Each house, after its organization, may appoint and at 
  1.12  pleasure remove the employees provided for by its permanent 
  1.13  rules or recommended by its committee on legislative expense 
  1.14  rules.  All officers and employees shall be paid by the day and 
  1.15  shall receive the compensation provided by the permanent rules 
  1.16  of the electing or appointing body or recommended by its 
  1.17  committee on legislative expense rules.  Unless otherwise 
  1.18  expressly provided by law, no officer or employee shall receive 
  1.19  any other compensation for services.  
  1.20     Sec. 2.  Minnesota Statutes 1998, section 3.09, is amended 
  1.21  to read: 
  1.22     3.09 [COMPENSATION OF EMPLOYEES.] 
  1.23     The compensation of officers and employees shall be at the 
  1.24  rates per day fixed by the permanent rules of the electing or 
  1.25  appointing body or recommended by its committee on legislative 
  1.26  expense rules.  
  2.1      Sec. 3.  Minnesota Statutes 1998, section 3.095, is amended 
  2.2   to read: 
  2.3      3.095 [LEGISLATIVE EMPLOYEES, LEAVES.] 
  2.4      The legislative coordinating commission shall adopt plans 
  2.5   for sick leave and annual leave for the permanent employees of 
  2.6   the legislature and of legislative committees and commissions. 
  2.7      Sec. 4.  Minnesota Statutes 1999 Supplement, section 3.096, 
  2.8   is amended to read: 
  2.9      3.096 [TRANSFER OF LEAVE.] 
  2.10     An employee in the classified or unclassified service who 
  2.11  accepts a position as a permanent an employee of the legislature 
  2.12  shall have accrued vacation and sick leave transferred and 
  2.13  placed to the employee's credit on the legislative records.  A 
  2.14  permanent An employee of the legislature who accepts a position 
  2.15  in the classified or unclassified service shall have accrued 
  2.16  vacation and sick leave transferred and placed to the employee's 
  2.17  credit on the records of the new appointing authority.  Vacation 
  2.18  and sick leave are not transferred if the new position does not 
  2.19  provide for the leave.  The amount of vacation and sick leave 
  2.20  that may be transferred is subject to any limitations imposed by 
  2.21  the receiving agency's collective bargaining agreement or 
  2.22  compensation plan. 
  2.23     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  2.24  43A.24, subdivision 2, is amended to read: 
  2.25     Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
  2.26  are eligible for state paid life insurance and hospital, 
  2.27  medical, and dental benefits as determined in applicable 
  2.28  collective bargaining agreements or by the commissioner or by 
  2.29  plans pursuant to section 43A.18, subdivision 6, or by the board 
  2.30  of regents for employees of the University of Minnesota not 
  2.31  covered by collective bargaining agreements.  Coverages made 
  2.32  available, including optional coverages, are as contained in the 
  2.33  plan established pursuant to section 43A.18, subdivision 2: 
  2.34     (a) a member of the state legislature, provided that 
  2.35  changes in benefits resulting in increased costs to the state 
  2.36  shall not be effective until expiration of the term of the 
  3.1   members of the existing house of representatives.  An eligible 
  3.2   member of the state legislature may decline to be enrolled for 
  3.3   state paid coverages by filing a written waiver with the 
  3.4   commissioner.  The waiver shall not prohibit the member from 
  3.5   enrolling the member or dependents for optional coverages, 
  3.6   without cost to the state, as provided for in section 43A.26.  A 
  3.7   member of the state legislature who returns from a leave of 
  3.8   absence to a position previously occupied in the civil service 
  3.9   shall be eligible to receive the life insurance and hospital, 
  3.10  medical, and dental benefits to which the position is entitled; 
  3.11     (b) a permanent an employee of the legislature or a 
  3.12  permanent an employee of a permanent study or interim committee 
  3.13  or commission or a state employee on leave of absence to work 
  3.14  for the legislature, during a regular or special legislative 
  3.15  session, as determined by the legislative coordinating 
  3.16  commission; 
  3.17     (c) a judge of the appellate courts or an officer or 
  3.18  employee of these courts; a judge of the district court, a judge 
  3.19  of county court, or a judge of county municipal court; a 
  3.20  district court referee, judicial officer, court reporter, or law 
  3.21  clerk; a district administrator; an employee of the office of 
  3.22  the district administrator that is not in the second or fourth 
  3.23  judicial district; a court administrator or employee of the 
  3.24  court administrator in a judicial district under section 
  3.25  480.181, subdivision 1, paragraph (b), and a guardian ad litem 
  3.26  program employee; 
  3.27     (d) a salaried employee of the public employees retirement 
  3.28  association; 
  3.29     (e) a full-time military or civilian officer or employee in 
  3.30  the unclassified service of the department of military affairs 
  3.31  whose salary is paid from state funds; 
  3.32     (f) a salaried employee of the Minnesota historical 
  3.33  society, whether paid from state funds or otherwise, who is not 
  3.34  a member of the governing board; 
  3.35     (g) an employee of the regents of the University of 
  3.36  Minnesota; 
  4.1      (h) notwithstanding section 43A.27, subdivision 3, an 
  4.2   employee of the state of Minnesota or the regents of the 
  4.3   University of Minnesota who is at least 60 and not yet 65 years 
  4.4   of age on July 1, 1982, who is otherwise eligible for employee 
  4.5   and dependent insurance and benefits pursuant to section 43A.18 
  4.6   or other law, who has at least 20 years of service and retires, 
  4.7   earlier than required, within 60 days of March 23, 1982; or an 
  4.8   employee who is at least 60 and not yet 65 years of age on July 
  4.9   1, 1982, who has at least 20 years of state service and retires, 
  4.10  earlier than required, from employment at Rochester state 
  4.11  hospital after July 1, 1981; or an employee who is at least 55 
  4.12  and not yet 65 years of age on July 1, 1982, and is covered by 
  4.13  the Minnesota state retirement system correctional employee 
  4.14  retirement plan or the state patrol retirement fund, who has at 
  4.15  least 20 years of state service and retires, earlier than 
  4.16  required, within 60 days of March 23, 1982.  For purposes of 
  4.17  this clause, a person retires when the person terminates active 
  4.18  employment in state or University of Minnesota service and 
  4.19  applies for a retirement annuity.  Eligibility shall cease when 
  4.20  the retired employee attains the age of 65, or when the employee 
  4.21  chooses not to receive the annuity that the employee has applied 
  4.22  for.  The retired employee shall be eligible for coverages to 
  4.23  which the employee was entitled at the time of retirement, 
  4.24  subject to any changes in coverage through collective bargaining 
  4.25  or plans established pursuant to section 43A.18, for employees 
  4.26  in positions equivalent to that from which retired, provided 
  4.27  that the retired employee shall not be eligible for state-paid 
  4.28  life insurance.  Coverages shall be coordinated with relevant 
  4.29  health insurance benefits provided through the federally 
  4.30  sponsored Medicare program; 
  4.31     (i) an employee of an agency of the state of Minnesota 
  4.32  identified through the process provided in this paragraph who is 
  4.33  eligible to retire prior to age 65.  The commissioner and the 
  4.34  exclusive representative of state employees shall enter into 
  4.35  agreements under section 179A.22 to identify employees whose 
  4.36  positions are in programs that are being permanently eliminated 
  5.1   or reduced due to federal or state policies or practices.  
  5.2   Failure to reach agreement identifying these employees is not 
  5.3   subject to impasse procedures provided in chapter 179A.  The 
  5.4   commissioner must prepare a plan identifying eligible employees 
  5.5   not covered by a collective bargaining agreement in accordance 
  5.6   with the process outlined in section 43A.18, subdivisions 2 and 
  5.7   3.  For purposes of this paragraph, a person retires when the 
  5.8   person terminates active employment in state service and applies 
  5.9   for a retirement annuity.  Eligibility ends as provided in the 
  5.10  agreement or plan, but must cease at the end of the month in 
  5.11  which the retired employee chooses not to receive an annuity, or 
  5.12  the employee is eligible for employer-paid health insurance from 
  5.13  a new employer.  The retired employees shall be eligible for 
  5.14  coverages to which they were entitled at the time of retirement, 
  5.15  subject to any changes in coverage through collective bargaining 
  5.16  or plans established under section 43A.18 for employees in 
  5.17  positions equivalent to that from which they retired, provided 
  5.18  that the retired employees shall not be eligible for state-paid 
  5.19  life insurance; 
  5.20     (j) employees of the state board of public defense, with 
  5.21  eligibility determined by the state board of public defense in 
  5.22  consultation with the commissioner of employee relations; and 
  5.23     (k) employees of the health data institute under section 
  5.24  62J.451, subdivision 12, as paid for by the health data 
  5.25  institute. 
  5.26     Sec. 6.  Minnesota Statutes 1998, section 352D.02, 
  5.27  subdivision 1, is amended to read: 
  5.28     Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
  5.29  paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 
  5.30  are in the unclassified service of the state or metropolitan 
  5.31  council and are eligible for coverage under the general state 
  5.32  employees retirement plan under chapter 352, are participants in 
  5.33  the unclassified program under this chapter unless the employee 
  5.34  gives notice to the executive director of the Minnesota state 
  5.35  retirement system within one year following the commencement of 
  5.36  employment in the unclassified service that the employee desires 
  6.1   coverage under the general state employees retirement plan.  For 
  6.2   the purposes of this chapter, an employee who does not file 
  6.3   notice with the executive director is deemed to have exercised 
  6.4   the option to participate in the unclassified plan. 
  6.5      (b) Persons referenced in paragraph (c), clauses (1) and 
  6.6   (5), are participants in the unclassified program under this 
  6.7   chapter unless the person is eligible to elect different 
  6.8   coverage under section 3A.07 or 352C.011 and, after July 1, 
  6.9   1998, elects retirement coverage by the applicable alternative 
  6.10  retirement plan. 
  6.11     (c) Enumerated employees and referenced persons are: 
  6.12     (1) the governor, the lieutenant governor, the secretary of 
  6.13  state, the state auditor, the state treasurer, and the attorney 
  6.14  general; 
  6.15     (2) an employee in the office of the governor, lieutenant 
  6.16  governor, secretary of state, state auditor, state treasurer, 
  6.17  attorney general; 
  6.18     (3) an employee of the state board of investment; 
  6.19     (4) the head of a department, division, or agency created 
  6.20  by statute in the unclassified service, an acting department 
  6.21  head subsequently appointed to the position, or an employee 
  6.22  enumerated in section 15A.0815 or 15A.083, subdivision 4; 
  6.23     (5) a member of the legislature; 
  6.24     (6) a permanent, full-time unclassified employee of the 
  6.25  legislature or a commission or agency of the legislature or a 
  6.26  temporary legislative employee having shares in the supplemental 
  6.27  retirement fund as a result of former employment covered by this 
  6.28  chapter, whether or not eligible for coverage under the 
  6.29  Minnesota state retirement system; 
  6.30     (7) a person who is employed in a position established 
  6.31  under section 43A.08, subdivision 1, clause (3), or in a 
  6.32  position authorized under a statute creating or establishing a 
  6.33  department or agency of the state, which is at the deputy or 
  6.34  assistant head of department or agency or director level; 
  6.35     (8) the regional administrator, or executive director of 
  6.36  the metropolitan council, general counsel, division directors, 
  7.1   operations managers, and other positions as designated by the 
  7.2   council, all of which may not exceed 27 positions at the council 
  7.3   and the chair, provided that upon initial designation of all 
  7.4   positions provided for in this clause, no further designations 
  7.5   or redesignations may be made without approval of the board of 
  7.6   directors of the Minnesota state retirement system; 
  7.7      (9) the executive director, associate executive director, 
  7.8   and not to exceed nine positions of the higher education 
  7.9   services office in the unclassified service, as designated by 
  7.10  the higher education services office before January 1, 1992, or 
  7.11  subsequently redesignated with the approval of the board of 
  7.12  directors of the Minnesota state retirement system, unless the 
  7.13  person has elected coverage by the individual retirement account 
  7.14  plan under chapter 354B; 
  7.15     (10) the clerk of the appellate courts appointed under 
  7.16  article VI, section 2, of the Constitution of the state of 
  7.17  Minnesota; 
  7.18     (11) the chief executive officers of correctional 
  7.19  facilities operated by the department of corrections and of 
  7.20  hospitals and nursing homes operated by the department of human 
  7.21  services; 
  7.22     (12) an employee whose principal employment is at the state 
  7.23  ceremonial house; 
  7.24     (13) an employee of the Minnesota educational computing 
  7.25  corporation; 
  7.26     (14) an employee of the world trade center board; and 
  7.27     (15) an employee of the state lottery board who is covered 
  7.28  by the managerial plan established under section 43A.18, 
  7.29  subdivision 3. 
  7.30     Sec. 7.  Minnesota Statutes 1998, section 352D.02, 
  7.31  subdivision 1c, is amended to read: 
  7.32     Subd. 1c.  An employee covered by the regular plan who is 
  7.33  subsequently employed as a permanent, full-time unclassified 
  7.34  employee of the legislature or any commission or agency of the 
  7.35  legislature may elect to transfer accumulated employee and 
  7.36  matching employer contributions, as provided in section 352D.03.