1.1                          A bill for an act
  1.2             relating to employment; establishing and modifying 
  1.3             certain salary limits; increasing the minimum wage; 
  1.4             amending Minnesota Statutes 1994, sections 15A.081, 
  1.5             subdivision 8; 15A.083, subdivision 5; 43A.17, 
  1.6             subdivisions 1, 3, and by adding a subdivision; 
  1.7             85A.02, subdivision 5a; 177.24, subdivision 1; and 
  1.8             298.22, subdivision 1; Minnesota Statutes 1995 
  1.9             Supplement, sections 3.855, subdivision 3; 43A.18, 
  1.10            subdivision 4; and 349A.02, subdivision 1; proposing 
  1.11            coding for new law in Minnesota Statutes, chapter 15A; 
  1.12            repealing Minnesota Statutes 1994, section 43A.18, 
  1.13            subdivision 5; and Minnesota Statutes 1995 Supplement, 
  1.14            section 15A.081, subdivisions 1, 7, and 7b. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.17  3.855, subdivision 3, is amended to read: 
  1.18     Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
  1.19  commission shall also: 
  1.20     (1) review and approve, reject, or modify recommendations 
  1.21  of the commissioner of employee relations for increasing salary 
  1.22  rates under section 43A.17, subdivision 3a; 
  1.23     (2) review and approve, reject, or modify a plan for 
  1.24  compensation and terms and conditions of employment prepared and 
  1.25  submitted by the commissioner of employee relations under 
  1.26  section 43A.18, subdivision 2, covering all state employees who 
  1.27  are not represented by an exclusive bargaining representative 
  1.28  and whose compensation is not provided for by chapter 43A or 
  1.29  other law; 
  1.30     (2) (3) review and approve, reject, or modify a plan for 
  2.1   total compensation and terms and conditions of employment for 
  2.2   employees in positions identified as being managerial under 
  2.3   section 43A.18, subdivision 3, whose salaries and benefits are 
  2.4   not otherwise provided for in law or other plans established 
  2.5   under chapter 43A; and 
  2.6      (3) review and approve, reject, or modify recommendations 
  2.7   for salaries submitted by the governor under section 43A.18, 
  2.8   subdivision 5, covering agency head positions listed in section 
  2.9   15A.081; 
  2.10     (4) review and approve, reject, or modify recommendations 
  2.11  for salaries of officials of higher education systems under 
  2.12  section 15A.081, subdivision 7b; and 
  2.13     (5) (4) review and approve, reject, or modify plans for 
  2.14  compensation, terms, and conditions of employment proposed under 
  2.15  section 43A.18, subdivisions 3a and 4. 
  2.16     Sec. 2.  Minnesota Statutes 1994, section 15A.081, 
  2.17  subdivision 8, is amended to read: 
  2.18     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
  2.19  the contrary, positions listed in subdivision 1 section 
  2.20  15A.0815, subdivisions 3 and 4, and constitutional officers, and 
  2.21  the commissioner of iron range resources and rehabilitation are 
  2.22  authorized an annual expense allowance not to exceed $1,500 for 
  2.23  necessary expenses in the normal performance of their duties for 
  2.24  which no other reimbursement is provided.  The expenditures 
  2.25  under this subdivision are subject to any laws and rules 
  2.26  relating to budgeting, allotment and encumbrance, preaudit and 
  2.27  postaudit.  The commissioner of finance may promulgate adopt 
  2.28  rules to assure the proper expenditure of these funds, and to 
  2.29  provide for reimbursement. 
  2.30     Sec. 3.  [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 
  2.31     Subdivision 1.  [SALARY LIMITS.] For purposes of 
  2.32  subdivisions 2 to 5, the governor's salary is as established 
  2.33  under section 15A.082. 
  2.34     The appointing authority, as defined in section 43A.02, 
  2.35  subdivision 5, shall establish salaries for the positions within 
  2.36  the prescribed limits as specified in subdivisions 2 to 5.  In 
  3.1   establishing individual salaries, the appointing authority shall 
  3.2   consider the criteria established in section 43A.18, subdivision 
  3.3   8, and the performance of individual incumbents.  The 
  3.4   performance evaluation must include a review of an incumbent's 
  3.5   progress toward attainment of affirmative action goals.  If the 
  3.6   appointing authority is not the governor, the salary proposed by 
  3.7   the appointing authority is not effective unless approved by the 
  3.8   commissioner of employee relations. 
  3.9      The appointing authority shall set the initial salary of a 
  3.10  head of a new agency or a chair of a new metropolitan board or 
  3.11  commission whose salary is not specifically prescribed by law.  
  3.12  If the appointing authority is not the governor, the salary 
  3.13  proposed by the appointing authority is not effective unless 
  3.14  approved by the commissioner of employee relations.  The amount 
  3.15  of the new salary must be comparable to the salary of an agency 
  3.16  head or commission chair having similar duties and 
  3.17  responsibilities. 
  3.18     Subd. 2.  [HIGHER EDUCATION SYSTEM LIMITS.] The salary of 
  3.19  the chancellor of Minnesota state colleges and universities may 
  3.20  not exceed 95 percent of the salary of the governor.  For 
  3.21  purposes of this subdivision, "salary" does not include: 
  3.22     (1) employee benefits that are also provided for the 
  3.23  majority of all other full-time state employees, vacation and 
  3.24  sick leave allowances, health and dental insurance, disability 
  3.25  insurance, term life insurance, and pension benefits or like 
  3.26  benefits the cost of which is borne by the employee or which is 
  3.27  not subject to tax as income under the Internal Revenue Code of 
  3.28  1986; 
  3.29     (2) dues paid to organizations that are of a civic, 
  3.30  professional, educational, or governmental nature; 
  3.31     (3) reimbursement for actual expenses incurred by the 
  3.32  employee that the appointing authority determines to be directly 
  3.33  related to the performance of job responsibilities, including 
  3.34  any relocation expenses paid during the initial year of 
  3.35  employment; or 
  3.36     (4) a housing allowance that is comparable to housing 
  4.1   allowances provided to chancellors and university presidents in 
  4.2   similar higher education systems nationwide. 
  4.3      Subd. 3.  [GROUP I SALARY LIMITS.] The salaries for 
  4.4   positions in this subdivision may not exceed 85 percent of the 
  4.5   salary of the governor:  
  4.6      Commissioner of administration; 
  4.7      Commissioner of agriculture; 
  4.8      Commissioner of children, families, and learning; 
  4.9      Commissioner of commerce; 
  4.10     Commissioner of corrections; 
  4.11     Commissioner of economic security; 
  4.12     Commissioner of employee relations; 
  4.13     Commissioner of finance; 
  4.14     Commissioner of health; 
  4.15     Director, higher education services office; 
  4.16     Commissioner, housing finance agency; 
  4.17     Commissioner of human rights; 
  4.18     Commissioner of human services; 
  4.19     Executive director, state board of investment; 
  4.20     Commissioner of labor and industry; 
  4.21     Commissioner of natural resources; 
  4.22     Commissioner of office of strategic and long-range 
  4.23  planning; 
  4.24     Commissioner, pollution control agency; 
  4.25     Commissioner of public safety; 
  4.26     Commissioner, department of public service; 
  4.27     Commissioner of revenue; 
  4.28     Commissioner of trade and economic development; 
  4.29     Commissioner of transportation; 
  4.30     Commissioner of veterans affairs; 
  4.31     Administrator of zoological gardens. 
  4.32     Subd. 4.  [GROUP II SALARY LIMITS.] The salaries for 
  4.33  positions in this subdivision may not exceed 75 percent of the 
  4.34  salary of the governor: 
  4.35     Executive director, agricultural utilization research 
  4.36  institute; 
  5.1      Ombudsman for corrections; 
  5.2      Executive director of gambling control board; 
  5.3      Commissioner of iron range resources and rehabilitation 
  5.4   board; 
  5.5      Commissioner, bureau of mediation services; 
  5.6      Ombudsman for mental health and retardation; 
  5.7      Executive director of pari-mutuel racing; 
  5.8      Executive director, public employees retirement 
  5.9   association; 
  5.10     Commissioner, public utilities commission; 
  5.11     Executive director, state retirement system; 
  5.12     Executive director, teacher's retirement association; 
  5.13     Member, transportation regulation board. 
  5.14     Subd. 5.  [GROUP III SALARY LIMITS.] The salary for a 
  5.15  position in this subdivision may not exceed 25 percent of the 
  5.16  salary of the governor: 
  5.17     Chair, metropolitan airports commission. 
  5.18     Sec. 4.  Minnesota Statutes 1994, section 15A.083, 
  5.19  subdivision 5, is amended to read: 
  5.20     Subd. 5.  [TAX COURT.] Salaries The salary of judges a 
  5.21  judge of the tax court are is the same as the base salary for 
  5.22  a district judges court judge as set under section 15A.082, 
  5.23  subdivision 3. 
  5.24     Sec. 5.  Minnesota Statutes 1994, section 43A.17, 
  5.25  subdivision 1, is amended to read: 
  5.26     Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
  5.27  to 9, "salary" means hourly, monthly, or annual rate of pay 
  5.28  including any lump-sum payments and cost-of-living adjustment 
  5.29  increases but excluding payments due to overtime worked, shift 
  5.30  or equipment differentials, work out of class as required by 
  5.31  collective bargaining agreements or plans established under 
  5.32  section 43A.18, and back pay on reallocation or other payments 
  5.33  related to the hours or conditions under which work is performed 
  5.34  rather than to the salary range or rate to which a class is 
  5.35  assigned.  For presidents of state universities, "salary" does 
  5.36  not include a housing allowance provided through a compensation 
  6.1   plan approved under section 43A.18, subdivision 3a. 
  6.2      The salary, as established in section 15A.081 15A.0815, of 
  6.3   the head of a state agency in the executive branch is the upper 
  6.4   limit of compensation on the salaries of individual employees in 
  6.5   the agency.  The salary of the commissioner of labor and 
  6.6   industry is the upper limit of compensation salaries of 
  6.7   employees in the bureau of mediation services.  However, if an 
  6.8   agency head is assigned a salary that is lower than the current 
  6.9   salary of another agency employee, the employee retains the 
  6.10  salary, but may not receive an increase in salary as long as the 
  6.11  salary is above that of the agency head.  The commissioner may 
  6.12  grant exemptions from these upper limits as provided in 
  6.13  subdivisions 3 3a and 4. 
  6.14     Sec. 6.  Minnesota Statutes 1994, section 43A.17, 
  6.15  subdivision 3, is amended to read: 
  6.16     Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 
  6.17  of the appointing authority, and when the commissioner 
  6.18  determines that changes in employment situations create 
  6.19  difficulties in attracting or retaining employees, the 
  6.20  commissioner may approve an unusual employment situation 
  6.21  increase to advance an employee within the compensation plan.  
  6.22  Such action will be consistent with applicable provisions of 
  6.23  collective bargaining agreements or plans pursuant to section 
  6.24  43A.18.  The commissioner shall review each proposal giving due 
  6.25  consideration to salary rates paid to other employees in the 
  6.26  same class and agency and may approve any request which in the 
  6.27  commissioner's judgment is in the best interest of the 
  6.28  state.  If the commissioner determines that the position 
  6.29  requires special expertise necessitating a higher salary to 
  6.30  attract or retain qualified persons, the commissioner may grant 
  6.31  an exemption not to exceed 120 percent of the base salary of the 
  6.32  head of the agency.  
  6.33     Sec. 7.  Minnesota Statutes 1994, section 43A.17, is 
  6.34  amended by adding a subdivision to read: 
  6.35     Subd. 3a.  [SALARY LIMIT WAIVERS.] The commissioner may 
  6.36  increase the limitation for a position that the commissioner has 
  7.1   determined requires special expertise necessitating a higher 
  7.2   salary to attract or retain a qualified person.  The 
  7.3   commissioner shall review each proposed increase giving due 
  7.4   consideration to salary rates paid to other persons with similar 
  7.5   responsibilities in the state and nation.  The commissioner may 
  7.6   not increase the limitation until the increase has been approved 
  7.7   by the legislative coordinating commission under section 3.855, 
  7.8   subdivisions 2 and 3. 
  7.9      Sec. 8.  Minnesota Statutes 1995 Supplement, section 
  7.10  43A.18, subdivision 4, is amended to read: 
  7.11     Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
  7.12  COMMISSIONER.] (a) Notwithstanding any other law to the 
  7.13  contrary, terms and conditions of employment for employees 
  7.14  listed in this subdivision must be set by appointing authorities 
  7.15  within the limits of compensation plans that have been approved 
  7.16  by the commissioner before becoming effective.  Compensation 
  7.17  plans established under paragraphs paragraph (c) and (d), must 
  7.18  be reviewed and approved, modified, or rejected by the 
  7.19  legislature and the legislative commission on employee relations 
  7.20  under section 3.855, subdivision 2, before becoming effective. 
  7.21     (b) Total compensation for employees who are not covered by 
  7.22  a collective bargaining agreement in the offices of the 
  7.23  governor, lieutenant governor, attorney general, secretary of 
  7.24  state, state auditor, and state treasurer must be determined by 
  7.25  the governor, lieutenant governor, attorney general, secretary 
  7.26  of state, state auditor, and state treasurer, respectively.  
  7.27     (c) Total compensation for classified administrative law 
  7.28  judges in the office of administrative hearings must be 
  7.29  determined by the chief administrative law judge.  
  7.30     (d) Total compensation for unclassified positions not 
  7.31  covered by a collective bargaining agreement in the higher 
  7.32  education services office must be determined by the higher 
  7.33  education services office. 
  7.34     Sec. 9.  Minnesota Statutes 1994, section 85A.02, 
  7.35  subdivision 5a, is amended to read: 
  7.36     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
  8.1   administrator who shall serve as the executive secretary and 
  8.2   principal administrative officer of the board and, subject to 
  8.3   its approval, the administrator shall operate the Minnesota 
  8.4   zoological garden and enforce all rules and policy decisions of 
  8.5   the board.  The administrator must be chosen solely on the basis 
  8.6   of training, experience, and other qualifications appropriate to 
  8.7   the field of zoo management and development.  The board shall 
  8.8   set the compensation for the administrator within the limits 
  8.9   established for the commissioner of agriculture in section 
  8.10  15A.081, subdivision 1.  The administrator shall perform duties 
  8.11  assigned by the board and shall serve serves in the unclassified 
  8.12  service at the pleasure of the board.  The administrator, with 
  8.13  the participation of the board, shall appoint a development 
  8.14  director in the unclassified service or contract with a 
  8.15  development consultant to establish mechanisms to foster 
  8.16  community participation in and community support for the 
  8.17  Minnesota zoological garden.  The board may employ other 
  8.18  necessary professional, technical, and clerical personnel.  
  8.19  Employees of the zoological garden are eligible for salary 
  8.20  supplement in the same manner as employees of other state 
  8.21  agencies.  The commissioner of finance shall determine the 
  8.22  amount of salary supplement based on available funds. 
  8.23     (b) The board may contract with individuals to perform 
  8.24  professional services and may contract for the purchases of 
  8.25  necessary species exhibits, supplies, services, and equipment. 
  8.26  The board may also contract for the construction and operation 
  8.27  of entertainment facilities on the zoo grounds that are not 
  8.28  directly connected to ordinary functions of the zoological 
  8.29  garden.  The zoo board shall may not enter into any a final 
  8.30  agreement for construction of any an entertainment facility that 
  8.31  is not directly connected to the ordinary functions of the zoo 
  8.32  until after final construction plans have been submitted to the 
  8.33  chairs of the senate finance and house appropriations committees 
  8.34  for their recommendations. 
  8.35     The zoo may not contract for entertainment during the 
  8.36  period of the Minnesota state fair that would directly compete 
  9.1   with entertainment at the Minnesota state fair. 
  9.2      Sec. 10.  Minnesota Statutes 1994, section 177.24, 
  9.3   subdivision 1, is amended to read: 
  9.4      Subdivision 1.  [AMOUNT.] (a) For purposes of this 
  9.5   subdivision, the terms defined in this paragraph have the 
  9.6   meanings given them.  
  9.7      (1) "Large employer" means an enterprise whose annual gross 
  9.8   volume of sales made or business done is not less than 
  9.9   $362,500 $500,000 (exclusive of excise taxes at the retail level 
  9.10  that are separately stated) and covered by the Minnesota fair 
  9.11  labor standards act, sections 177.21 to 177.35. 
  9.12     (2) "Small employer" means an enterprise whose annual gross 
  9.13  volume of sales made or business done is less 
  9.14  than $362,500 $500,000 (exclusive of excise taxes at the retail 
  9.15  level that are separately stated) and covered by the Minnesota 
  9.16  fair labor standards act, sections 177.21 to 177.35.  
  9.17     (b) Except as otherwise provided in sections 177.21 to 
  9.18  177.35, every large employer must pay each employee wages at a 
  9.19  rate of at least $4.25 an hour beginning January 1, 1991 $4.75 
  9.20  an hour beginning October 1, 1996, and at least $5.10 an hour 
  9.21  beginning October 1, 1997.  Every small employer must pay each 
  9.22  employee at a rate of at least $4 an hour beginning January 1, 
  9.23  1991 $4.50 an hour beginning October 1, 1996, and at least $4.85 
  9.24  an hour beginning October 1, 1997. 
  9.25     (c) A large employer must pay each employee at a rate of at 
  9.26  least the minimum wage set by this section or federal law 
  9.27  without the reduction for training wage or full-time student 
  9.28  status allowed under federal law. 
  9.29     Sec. 11.  Minnesota Statutes 1994, section 298.22, 
  9.30  subdivision 1, is amended to read: 
  9.31     Subdivision 1.  (1) The office of governor shall appoint 
  9.32  the commissioner of iron range resources and rehabilitation is 
  9.33  created.  The commissioner shall be appointed by the governor 
  9.34  under the provisions of section 15.06. 
  9.35     (2) The commissioner may hold such other positions or 
  9.36  appointments as that are not incompatible with duties as 
 10.1   commissioner of iron range resources and rehabilitation.  The 
 10.2   commissioner may appoint a deputy commissioner.  All expenses of 
 10.3   the commissioner, including the payment of such assistance as 
 10.4   may be necessary, shall must be paid out of the amounts 
 10.5   appropriated by section 298.28.  The compensation of the 
 10.6   commissioner shall be set by the legislative coordinating 
 10.7   commission and may not exceed the maximum salary set for the 
 10.8   commissioner of administration under section 15A.081, 
 10.9   subdivision 1.  
 10.10     (3) When the commissioner shall determine determines that 
 10.11  distress and unemployment exists or may exist in the future in 
 10.12  any county by reason of the removal of natural resources or a 
 10.13  possibly limited use thereof of natural resources in the future 
 10.14  and the any resulting decrease in employment resulting 
 10.15  therefrom, now or hereafter, the commissioner may use such 
 10.16  whatever amounts of the appropriation made to the commissioner 
 10.17  of revenue in section 298.28 as that are determined to be 
 10.18  necessary and proper in the development of the remaining 
 10.19  resources of said the county and in the vocational training and 
 10.20  rehabilitation of its residents, except that the amount needed 
 10.21  to cover cost overruns awarded to a contractor by an arbitrator 
 10.22  in relation to a contract awarded by the commissioner or in 
 10.23  effect after July 1, 1985, is appropriated from the general 
 10.24  fund.  For the purposes of this section, "development of 
 10.25  remaining resources" includes, but is not limited to, the 
 10.26  promotion of tourism. 
 10.27     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 10.28  349A.02, subdivision 1, is amended to read: 
 10.29     Subdivision 1.  [DIRECTOR.] A state lottery is established 
 10.30  under the supervision and control of the director of the state 
 10.31  lottery appointed by the governor with the advice and consent of 
 10.32  the senate.  The director must be qualified by experience and 
 10.33  training in the operation of a lottery to supervise the 
 10.34  lottery.  The director serves in the unclassified service.  The 
 10.35  annual salary rate authorized for the director is equal to 80 85 
 10.36  percent of the salary rate prescribed for the governor as of the 
 11.1   effective date of Laws 1993, chapter 146. 
 11.2      Sec. 13.  [COMPENSATION COUNCIL RECOMMENDATIONS.] 
 11.3      (a) The salaries of constitutional officers and judges are 
 11.4   increased on January 6, 1997, by the lesser of: 
 11.5      (1) the April 1, 1995, recommendation of the compensation 
 11.6   council to take effect in 1997; or 
 11.7      (2) the average of the across-the-board increases for the 
 11.8   fiscal year ending June 30, 1996, included in collective 
 11.9   bargaining agreements and arbitration awards that have been 
 11.10  ratified by the legislature in 1996.  On July 1, 1996, the 
 11.11  commissioner of employee relations shall calculate and report to 
 11.12  the committee on finance of the senate and the ways and means 
 11.13  committee of the house of representatives the average 
 11.14  across-the-board increases that have been ratified by the 
 11.15  legislature in 1996.  The across-the-board increases must be 
 11.16  weighted by the number of full-time-equivalent employees covered 
 11.17  by the contract or arbitration award for the fiscal year ending 
 11.18  June 30, 1996.  This calculation must be used to determine the 
 11.19  increases provided in this paragraph. 
 11.20     (b) The salaries of constitutional officers and judges are 
 11.21  increased on January 1, 1998, by the lesser of: 
 11.22     (1) the April 1, 1995, recommendation of the compensation 
 11.23  council to take effect in 1998; or 
 11.24     (2) the average of the across-the-board increases for the 
 11.25  fiscal year ending June 30, 1997, included in collective 
 11.26  bargaining agreements and arbitration awards that have been 
 11.27  ratified by the legislature in 1996.  On July 1, 1996, the 
 11.28  commissioner of employee relations shall calculate and report to 
 11.29  the committee on finance of the senate and the ways and means 
 11.30  committee of the house of representatives the average 
 11.31  across-the-board increases that have been ratified by the 
 11.32  legislature in 1996.  The across-the-board increases must be 
 11.33  weighted by the number of full-time-equivalent employees covered 
 11.34  by the contract or arbitration award for the fiscal year ending 
 11.35  June 30, 1996.  This calculation must be used to determine the 
 11.36  increases provided in this paragraph. 
 12.1      Sec. 14.  [REVISOR INSTRUCTION.] 
 12.2      The revisor of statutes shall substitute the reference 
 12.3   "section 15A.0815" for each reference to sections 15A.081, 
 12.4   subdivisions 1, 7, and 7b, and 43A.18, subdivision 5, wherever 
 12.5   they occur in the next edition of Minnesota Statutes and 
 12.6   Minnesota Rules. 
 12.7      Sec. 15.  [REPEALER.] 
 12.8      Minnesota Statutes 1994, section 43A.18, subdivision 5; and 
 12.9   Minnesota Statutes 1995 Supplement, section 15A.081, 
 12.10  subdivisions 1, 7, and 7b, are repealed. 
 12.11     Sec. 16.  [EFFECTIVE DATE.] 
 12.12     Sections 1 to 5, 9, and 11 are effective retroactively to 
 12.13  July 1, 1995. 
 12.14     Sections 6 to 8 and 12 to 15 are effective the day 
 12.15  following final enactment. 
 12.16     Section 10 is effective October 1, 1996.