1.1 	A bill for an act
1.2 	relating to state government; preserving access to
1.3 	certain data for terminated state employees; creating
1.4 	a position for an ombudsman for state employee
1.5 	whistle-blower investigations; prohibiting public
1.6 	employers from retaliating against employees who
1.7 	report waste or mismanagement; providing access to a
1.8 	contested case hearing for employees who claim
1.9 	whistle-blower status; amending Minnesota Statutes
1.10 	2004, sections 43A.33, subdivision 1; 181.932, by
1.11 	adding a subdivision; proposing coding for new law in
1.12 	Minnesota Statutes, chapters 15; 16B.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. [15.175] CERTAIN EMPLOYEE RECORDS.
1.15 	(a) Data, records, files, and all written or electronic
1.16 	materials of, or relating to, a state employee who is
1.17 	involuntarily terminated from employment with a state agency
1.18 	must be preserved for a period of at least three years after the
1.19 	employee's termination from employment, or a longer period as
1.20 	required under section 138.17.  A state employee who has been
1.21 	terminated may request the opportunity to review all data
1.22 	covered by this section.  An agency responding to a request made
1.23 	under this section must provide a response within ten days after
1.24 	receiving a written request.
1.25 	(b) A state agency that destroys, shreds, or alters data,
1.26 	records, files, or materials in violation of this requirement is
1.27 	liable to the employee for damages resulting from that
1.28 	violation, plus costs and reasonable attorney fees incurred by
1.29 	the employee in enforcing the employee's rights under this
2.1 	section.  In addition, the employee is also entitled to
2.2 	reinstatement to the position from which the employee was
2.3 	terminated, plus reimbursement for lost wages and health and
2.4 	retirement benefits.

2.5 	EFFECTIVE DATE. This section is effective retroactively
2.6 	from January 1, 2002.

2.7 	Sec. 2. [16B.395] OMBUDSMAN FOR STATE EMPLOYEE
2.8 	WHISTLE-BLOWER INVESTIGATIONS.
2.9 		Subdivision 1.Appointment. The commissioner shall
2.10 	appoint an ombudsman in the classified service for state
2.11 	employee whistle-blower investigations.  The ombudsman may
2.12 	perform other duties for the Department of Administration
2.13 	besides those included in this section.
2.14 		Subd. 2.Duties; agency notification. The ombudsman
2.15 	shall provide direct oversight of all employee investigations
2.16 	and separations from employment that involve allegations of
2.17 	retaliatory discharge under section 181.932.  If an agency
2.18 	investigating an employee determines that it appears reasonably
2.19 	likely that substantial discipline for the employee will result
2.20 	from the investigation, such as demotion or termination, then
2.21 	the agency must immediately notify the ombudsman,
2.22 	notwithstanding any restrictions in chapter 13.  In addition,
2.23 	any agency terminating an employee must provide the employee
2.24 	with information about the services provided by the ombudsman
2.25 	and with the ombudsman's toll-free telephone number.  The
2.26 	ombudsman's duties include, but are not limited to:
2.27 	(1) conducting independent evaluations of all aspects of
2.28 	each investigation;
2.29 	(2) monitoring, reviewing, and providing comments and
2.30 	recommendations to agencies and employees involved in each
2.31 	investigation;
2.32 	(3) providing reports to the legislature and the public
2.33 	about the conduct of employee investigations and procedures used
2.34 	to discharge employees;
2.35 	(4) providing information concerning the process for
2.36 	investigations and contested case hearings to individuals
3.1 	involved in those proceedings;
3.2 	(5) operating a toll-free telephone line to provide free,
3.3 	confidential help with individual problems and grievances
3.4 	related to employee investigations and separations from
3.5 	employment involving allegations relevant to section 181.932;
3.6 	and 
3.7 	(6) performing the ombudsman's duties in cooperation and
3.8 	coordination with governmental entities and private
3.9 	organizations as appropriate so as to eliminate overlap and
3.10 	duplication to the extent practicable.
3.11 		Subd. 3.Independence of action. In carrying out the
3.12 	duties imposed by this section, the ombudsman may act
3.13 	independently of the commissioner in providing testimony to the
3.14 	legislature, and contacting and making periodic reports to state
3.15 	employees affected by this section.
3.16 		Subd. 4.Confidentiality. All personal information
3.17 	received by the ombudsman received in the course of performing
3.18 	duties under this section must be kept confidential within the
3.19 	Office of the Ombudsman and may not be released without the
3.20 	written consent of the affected individual.
3.21 		Subd. 5.Qualifications. The ombudsman must be
3.22 	knowledgeable about employment law and internal investigations
3.23 	used for allegations of employee misconduct.  The ombudsman must
3.24 	be experienced in dealing with state agencies and employees,
3.25 	interpretation of laws and regulations, investigation, record
3.26 	keeping, report writing, public speaking, and management.
3.27 		Subd. 6.Office support. The commissioner shall provide
3.28 	the ombudsman with the necessary office space, supplies,
3.29 	equipment, and clerical support to effectively perform the
3.30 	duties imposed by this section.

3.31 	Sec. 3. Minnesota Statutes 2004, section 43A.33,
3.32 	subdivision 1, is amended to read:
3.33 		Subdivision 1.Discharge, suspension, demotion for cause,
3.34 	salary decrease.  Managers and employees shall attempt to
3.35 	resolve disputes through informal means prior to the initiation
3.36 	of disciplinary action.  No permanent employee in the classified
4.1 	service shall be reprimanded, discharged, suspended without pay,
4.2 	or demoted, except for just cause. The discharge of an employee
4.3 	from unclassified service who is on leave from the classified
4.4 	service does not affect or rescind the application of the
4.5 	procedures under this section to the discharge, if any, of the
4.6 	employee from the classified service.

4.7 	Sec. 4. Minnesota Statutes 2004, section 181.932, is
4.8 	amended by adding a subdivision to read:
4.9 		Subd. 1a.Public employers. (a) The state, including a
4.10 	state postsecondary educational institution or a political
4.11 	subdivision of the state as defined in section 6.56, subdivision
4.12 	1, may not discharge, discipline, threaten, penalize, or
4.13 	otherwise discriminate against an employee regarding the
4.14 	employee's compensation, terms, conditions, location, or
4.15 	privileges of employment because the employee, in good faith,
4.16 	reports or is in the process of preparing a report regarding
4.17 	serious waste, inefficiency, or mismanagement in the employee's
4.18 	place of employment that diminishes the value the public
4.19 	receives from the employer, even though the waste, inefficiency,
4.20 	or mismanagement reported does not in itself violate any federal
4.21 	or state law or rule.
4.22 	(b) An employer covered by this subdivision shall establish
4.23 	policies and procedures designed to ensure that reports
4.24 	submitted by its employees under this subdivision or subdivision
4.25 	1 are promptly and impartially investigated and that reporting
4.26 	employees are afforded the protections set out in this section
4.27 	and section 181.933.
4.28 	(c) A state employee who is involuntarily discharged from
4.29 	the unclassified service and who claims the discharge violated
4.30 	this subdivision or subdivision 1 may seek review of the
4.31 	discharge under the contested case procedures in sections 14.48
4.32 	to 14.69.  The jurisdiction of the Office of Administrative
4.33 	Hearings is limited to a determination whether the discharge was
4.34 	in violation of this subdivision or subdivision 1 and the
4.35 	provision of any appropriate remedies.  The parties to the
4.36 	contested case proceeding must be allowed access to relevant
5.1 	documents and witnesses for a reasonable period of time before
5.2 	the hearing on a proceeding under this paragraph.  The
5.3 	administrative law judge must consider the quality and integrity
5.4 	of the investigative process, if any, used by the agency when
5.5 	reviewing evidence submitted by the agency.