1.1 	A bill for an act
1.2 	relating to state government; instituting a salary and wage freeze for state 
1.3 	employees;proposing coding for new law in Minnesota Statutes, chapter 43A.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [43A.175] SALARY FREEZE.
1.6 	(a) Effective July 1, 2011, a state employee may not receive a salary or 
1.7 	wage increase. This section prohibits any increases, including but not limited to: 
1.8 	across-the-board increases; cost-of-living adjustments; increases based on longevity; 
1.9 	step increases; increases in the form of lump-sum payments; increases in employer 
1.10 	contributions to deferred compensation plans; or any other pay grade adjustments of any 
1.11 	kind. This section does not prohibit an increase in the rate of salary and wages for an 
1.12 	employee who is promoted or transferred to a position with greater responsibilities and 
1.13 	with a higher salary or wage rate.
1.14 	(b) A state appointing authority may not enter into a collective bargaining agreement 
1.15 	or implement a compensation plan that increases salary or wages in a manner prohibited 
1.16 	by this section. Neither a state appointing authority nor an exclusive representative of state 
1.17 	employees may request interest arbitration in relation to an increase in salary or wages that 
1.18 	is prohibited by this section, and an arbitrator may not issue an award that would increase 
1.19 	salary or wages in a manner prohibited by this section.
1.20 	(c) Notwithstanding section 179A.20, subdivision 6, or any other law to the contrary, 
1.21 	the terms of a contract in effect on June 30, 2011, do not continue in effect after June 30, 
1.22 	2011, to the extent the terms of the contract would provide for an increase in salary or 
1.23 	wages that is prohibited by this section.

2.1 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment. 
2.2 	Paragraphs (a) and (c) are effective June 30, 2011.