2000 Minnesota Statutes

CHAPTER 43A. Department of employee relations

     43A.01 Policies. 

    Subdivision 1.    General.  It is the policy of the 
 state to maintain an efficient and effective merit based 
 personnel management system to meet the management needs of the 
 state and the social, economic and program needs of the people 
 of the state.  The system shall provide means to recruit, select 
 and develop an effective, productive and responsive work force 
 representative of the labor market according to the demands of 
 society, equity and law, and shall include policies and 
 procedures for employee hiring and advancement, training and 
 career development, job classification, salary administration, 
 employee benefits, discipline, discharge, retirement and other 
 related activities as appropriate, taking into consideration 
 formal and informal labor relations arrangements.  

    Subd. 2.    Precedence of merit principles and 
 nondiscrimination.  It is the policy of this state to provide 
 for equal employment opportunity consistent with chapter 363 by 
 ensuring that all personnel actions be based on the ability to 
 perform the duties and responsibilities assigned to the position 
 without regard to age, race, creed or religion, color, 
 disability, sex, national origin, marital status, status with 
 regard to public assistance, or political affiliation.  It is 
 the policy of this state to take affirmative action to eliminate 
 the underutilization of qualified members of protected groups in 
 the civil service, where such action is not in conflict with 
 other provisions of this chapter or chapter 179, in order to 
 correct imbalances and eliminate the present effects of past 
 discrimination.  

    No contract executed pursuant to chapter 179A shall modify, 
 waive or abridge this section and sections 43A.07 to 43A.13, 
 43A.15, and 43A.17 to 43A.21, except to the extent expressly 
 permitted in those sections.  

    Subd. 3.    Equitable compensation relationships.  It is 
 the policy of this state to attempt to establish equitable 
 compensation relationships between female-dominated, 
 male-dominated, and balanced classes of employees in the 
 executive branch.  Compensation relationships are equitable 
 within the meaning of this subdivision when the primary 
 consideration in negotiating, establishing, recommending, and 
 approving total compensation is comparability of the value of 
 the work in relationship to other positions in the executive 
 branch.  

    HIST: 1981 c 210 s 1; 1982 c 634 s 1; 1997 c 79 s 1 

     43A.02 Definitions. 

    Subdivision 1.    Interpretation.  Unless the language 
 or context indicates that a different meaning is intended, the 
 following terms, for the purposes of this chapter, have the 
 meanings given them in this section.  

    Subd. 2.    Agency.  "Agency" means a department, 
 commission, board, institution, or other employing entity of the 
 civil service, in which all positions are under the same 
 appointing authority.  

    Subd. 3.    Allocation.  "Allocation" means the 
 assignment of an individual position to an appropriate class on 
 the basis of the kind, difficulty, or responsibility of the work 
 performed in the position.  

    Subd. 4.    Applicant.  "Applicant" means a person who 
 has completed a state application for employment and has 
 submitted it to the department of employee relations or other 
 appointing authority who has been delegated authority to recruit 
 and examine individuals for state jobs.  

    Subd. 5.    Appointing authority.  "Appointing authority"
 means a person or group of persons empowered by the 
 constitution, statute, or executive order to employ persons in 
 or to make appointments to positions in the civil service.  

    Subd. 6.    Appointment.  "Appointment" means the act of 
 filling a vacancy by placement of a person in a civil service 
 position through selection from an eligible list or a 
 noncompetitive or qualifying process including transfer, 
 demotion or reinstatement.  

    Subd. 6a.    Balanced class.  "Balanced class" means any 
 class in which no more than 80 percent of the incumbents are 
 male and no more than 70 percent of the incumbents are female.  

    Subd. 7.    Candidate.  "Candidate" means an applicant 
 whose application for employment has been accepted into the 
 examination process for a class.  

    Subd. 8.    Certification.  "Certification" means the 
 referral of names from an eligible list to an appointing 
 authority to fill vacant positions in the classified service.  

    Subd. 9.    Change in allocation.  "Change in allocation"
 means reclassification resulting from abrupt, management-imposed 
 changes in the duties and responsibilities of a position.  

    Subd. 10.    Civil service.  "Civil service" means all 
 employees in the legislative, judicial and executive branches of 
 state government and all positions in the classified and 
 unclassified services as provided in sections 43A.07 and 43A.08. 

    Subd. 11.    Class.  "Class" means one or more positions 
 sufficiently similar with respect to duties and responsibilities 
 that the same descriptive title may be used with clarity to 
 designate each position allocated to the class and that the same 
 general qualifications are needed for performance of the duties 
 of the class, and that the same schedule of pay can be applied 
 with equity to all positions in the class under the same or 
 substantially the same employment conditions. 

    Subd. 12.    Classified service.  "Classified service" 
 means all positions now existing or hereafter created in the 
 civil service and not specifically designated unclassified 
 pursuant to section 43A.08.  

    Subd. 13.    Commissioner.  "Commissioner" means the 
 commissioner of employee relations.  

    Subd. 14.    Commissioner's plan.  "Commissioner's plan" 
 means the plan required by section 3.855 regarding total 
 compensation and terms and conditions of employment, including 
 grievance administration, for employees of the executive branch 
 who are not otherwise provided for in this chapter or other law. 

    Subd. 14a.    Comparability of the value of the work.  
 "Comparability of the value of the work" means the value of the 
 work measured by the composite of the skill, effort, 
 responsibility, and working conditions normally required in the 
 performance of the work.  

    Subd. 15.    Competitive open.  "Competitive open" means 
 eligibility to compete in an examination for state employment is 
 extended to all interested persons.  

    Subd. 16.    Competitive promotional.  "Competitive 
 promotional" means eligibility to compete in an examination for 
 state employment is limited to persons currently occupying, or 
 on leave or layoff from, civil service positions.  

    Subd. 17.    Declassified position.  "Declassified 
 position" means a position which is removed from the classified 
 service and placed in the unclassified service.  

    Subd. 18.    Department.  "Department" means the 
 department of employee relations.  

    Subd. 19.    Eligible.  "Eligible" means a person whose 
 name is on an eligible list.  

    Subd. 20.    Eligible list.  "Eligible list" means a 
 list of candidates qualified under provisions of this chapter 
 for employment in a specific class.  

    Subd. 21.    Employee.  "Employee" means any person 
 currently occupying, or on leave from, a civil service position. 

    Subd. 22.    Executive branch.  "Executive branch" means 
 heads of all agencies of state government, elective or 
 appointive, established by statute or constitution and all 
 employees of those agency heads who have within their particular 
 field of responsibility statewide jurisdiction and who are not 
 within the legislative or judicial branches of government.  The 
 executive branch also includes employees of the iron range 
 resources and rehabilitation board.  The executive branch does 
 not include agencies with jurisdiction in specifically defined 
 geographical areas, such as regions, counties, cities, towns, 
 municipalities, or school districts, the University of 
 Minnesota, the public employees retirement association, the 
 Minnesota state retirement system, the teachers retirement 
 association, the Minnesota historical society, and all of their 
 employees, and any other entity which is incorporated, even 
 though it receives state funds.  

    Subd. 22a.    Female-dominated class.  "Female-dominated 
 class" means any class in which more than 70 percent of the 
 incumbents are female.  

    Subd. 23.    Intermittent employee.  "Intermittent 
 employee" means an employee who works an irregular and uncertain 
 schedule which alternately begins, ceases and begins again as 
 the needs of the agency require.  

    Subd. 24.    Intern.  "Intern" means an individual who, 
 for a work experience, is receiving academic credit from or is 
 fulfilling an academic requirement of, an accredited educational 
 institution.  

    Subd. 25.    Judicial branch.  "Judicial branch" means 
 all judges of the appellate courts, all employees of the 
 appellate courts, including commissions, boards, and committees 
 established by the supreme court, the board of law examiners, 
 the law library, the office of the state public defender, 
 district public defenders and their employees, all judges of all 
 courts of law, district court referees, judicial officers, court 
 reporters, law clerks, district administration employees under 
 section 484.68, court administrator or employee of the court in 
 a judicial district under section 480.181, subdivision 1, 
 paragraph (b), guardian ad litem program employees, and other 
 agencies placed in the judicial branch by law.  Judicial branch 
 does not include district administration or public defenders or 
 their employees in the second and fourth judicial districts, 
 court administrators not under section 480.181, subdivision 1, 
 paragraph (b), or their staff under chapter 485, or other 
 employees within the court system whose salaries are paid by the 
 county, other than employees who remain on the county payroll 
 under section 480.181, subdivision 2.  

    Subd. 26.    Layoff list.  "Layoff list" means an 
 eligible list by class of former permanent or probationary 
 employees who have been terminated from positions in the class 
 because of a shortage of funds or curtailment of service or for 
 any other reason beyond their control not reflecting discredit 
 on the employee.  

    Subd. 27.    Legislative branch.  "Legislative branch" 
 means all legislators and all employees of the legislature, 
 legislative committees or commissions.  

    Subd. 27a.    Male-dominated class.  "Male-dominated 
 class" means any class in which more than 80 percent of the 
 incumbents are male.  

    Subd. 28.    Managerial.  "Managerial" means those 
 positions designated pursuant to section 43A.18, subdivision 3 
 as being accountable for determining, securing, and allocating 
 human, financial, and other resources needed to accomplish 
 objectives.  Positions in this category also are accountable for 
 determining overall objectives, priorities, and policies within 
 a program area.  Higher level positions in this category handle 
 significant and involved relationships with governmental 
 leadership.  Incumbents of these positions have the authority to 
 exercise discretionary powers on a regular basis. 

    Subd. 29.    Officer.  For purposes of chapter 15A the 
 term "officer" may be used interchangeably with the term 
 "employee"  within the executive branch.  

    Subd. 30.    Permanent status.  "Permanent status" means 
 the state or condition achieved by an employee in the classified 
 service who has successfully completed an initial probationary 
 period or a probationary period required following reinstatement 
 or reemployment, or whose probationary period is waived through 
 specific statutory direction.  

    Subd. 31.    Position.  "Position" means a group of 
 duties and responsibilities assigned or delegated by competent 
 authority, requiring the full-time or less than full-time 
 employment of one person.  

    Subd. 32.    Probationary period.  "Probationary 
 period", part of the examination process, means a working period 
 following unlimited appointment to a position in the classified 
 service, during which the employee is required to demonstrate 
 ability to perform the duties and fulfill the responsibilities 
 of the position.  

    Subd. 33.    Protected groups.  For affirmative action 
 purposes, "protected groups" means females, persons with 
 disabilities, and members of the following minorities:  Black, 
 Hispanic, Asian or Pacific Islander, and American Indian or 
 Alaskan native.  

    Subd. 34.    Qualifying appointment.  "Qualifying 
 appointment" means the selection, from other than an eligible 
 list, of a candidate who has demonstrated through an examination 
 process that the candidate meets minimum job-related 
 requirements.  

    Subd. 35.    Reallocation.  "Reallocation" means 
 reclassification resulting from significant changes over a 
 period of time in the duties and responsibilities of a position. 

    Subd. 36.    Reclassification.  "Reclassification" means 
 changing the allocation of a position to a higher, lower or 
 equivalent class.  

    Subd. 37.    Reemployment list.  "Reemployment list" 
 means an eligible list by class of current or former permanent 
 or probationary employees laid off, demoted in lieu of layoff, 
 or separated in good standing from the class, or former 
 permanent or probationary employees of the class who are 
 receiving disability benefits under a state retirement plan and 
 whose written applications for consideration for reemployment in 
 the class have been approved by the commissioner.  

    Subd. 38.    Total compensation.  "Total compensation" 
 means salaries, cash payments and employee benefits including 
 paid time off, group insurance benefits, and other direct and 
 indirect items of compensation with the exception of retirement 
 plans.  

    Subd. 39.    Unclassified service.  "Unclassified 
 service"  means all positions designated not being classified 
 pursuant to section 43A.08.  

    Subd. 40.    Unlimited appointment.  "Unlimited 
 appointment" means an appointment for which there is no 
 specified maximum duration.  

    HIST: 1981 c 210 s 2; 1982 c 560 s 8; 1982 c 634 s 2-5; 1983 c 
 247 s 19; 1989 c 335 art 3 s 2; 1990 c 594 art 2 s 1; 1993 c 146 
 art 2 s 9; 1997 c 79 s 2-6; 1999 c 182 s 2,3; 1999 c 216 art 7 s 
 1 

*   NOTE:  Laws 1999, chapter 216, article 7, section 46, 
*subdivisions 1 and 3, provide specific effective dates for the 
*state takeover of court administrative and miscellaneous costs 
*under subdivision 25, as amended by Laws 1999, chapter 216, 
*article 7, section 1.

     43A.03 Department of employee relations. 

    Subdivision 1.    Creation.  The department of employee 
 relations is created under the control and direction of the 
 commissioner.  

    Subd. 2.    Commissioner.  The commissioner shall be 
 appointed by the governor under the provisions of section 
 15.06.  The commissioner shall be knowledgeable in executive 
 personnel management and shall have background in labor 
 relations.  

    Subd. 3.    Organization.  The department shall be 
 organized into two bureaus which shall be designated the 
 personnel bureau and the labor relations bureau.  Each bureau 
 shall be responsible for administering the duties and functions 
 assigned to it by law.  When the duties of the bureaus are not 
 mandated by law, the commissioner may establish and revise the 
 assignments of either bureau.  Each bureau shall be under the 
 direction of a deputy commissioner.  

    Subd. 4.    Deputy commissioners.  The deputy 
 commissioners of the personnel and labor relations bureaus shall 
 be in the unclassified service and shall be appointed by and 
 serve at the pleasure of the commissioner.  

    Subd. 5.    Confidential secretary.  The commissioner 
 may appoint a confidential secretary, who shall serve at the 
 pleasure of the commissioner in the unclassified service.  

    HIST: 1981 c 210 s 3 

     43A.04 General powers and responsibilities of 
  commissioner. 

    Subdivision 1.    Statewide leadership.  (a) The 
 commissioner is the chief personnel and labor relations manager 
 of the civil service in the executive branch.  

    Whenever any power or responsibility is given to the 
 commissioner by any provision of this chapter, unless otherwise 
 expressly provided, the power or authority applies to all 
 employees of agencies in the executive branch and to employees 
 in classified positions in the office of the legislative 
 auditor, the Minnesota state retirement system, the public 
 employees retirement association, and the teacher's retirement 
 association.  Unless otherwise provided by law, the power or 
 authority does not apply to unclassified employees in the 
 legislative and judicial branches.  

    (b) The commissioner shall operate an information system 
 from which personnel data, as defined in section 13.43, 
 concerning employees and applicants for positions in the 
 classified service can be retrieved.  

    The commissioner has access to all public and private 
 personnel data kept by appointing authorities that will aid in 
 the discharge of the commissioner's duties.  

    (c) The commissioner may consider and investigate any 
 matters concerned with the administration of provisions of this 
 chapter, and may order any remedial actions consistent with 
 law.  The commissioner, at the request of an agency, shall 
 provide assistance in employee misconduct investigations.  The 
 commissioner shall have the right to assess from the requesting 
 agency, any costs incurred while assisting the agency in the 
 employee misconduct investigation.  Money received by the 
 commissioner under this paragraph is appropriated to the 
 commissioner for purposes of this paragraph. 

    (d) The commissioner has sole authority to settle state 
 employee workers' compensation claims. 

    (e) The commissioner may assess or establish and collect 
 premiums from all state entities to cover the costs of programs 
 under sections 15.46 and 176.603. 

    Subd. 1a.    Mission; efficiency.  It is part of the 
 department's mission that within the department's resources the 
 commissioner shall endeavor to: 

    (1) prevent the waste or unnecessary spending of public 
 money; 

    (2) use innovative fiscal and human resource practices to 
 manage the state's resources and operate the department as 
 efficiently as possible; 

    (3) coordinate the department's activities wherever 
 appropriate with the activities of other governmental agencies; 

    (4) use technology where appropriate to increase agency 
 productivity, improve customer service, increase public access 
 to information about government, and increase public 
 participation in the business of government; 

    (5) utilize constructive and cooperative labor-management 
 practices to the extent otherwise required by chapters 43A and 
 179A; 

    (6) report to the legislature on the performance of agency 
 operations and the accomplishment of agency goals in the 
 agency's biennial budget according to section 16A.10, 
 subdivision 1; and 

    (7) recommend to the legislature appropriate changes in law 
 necessary to carry out the mission and improve the performance 
 of the department. 

    Subd. 2.    Executive direction.  The commissioner shall 
 direct all departmental services, appoint employees and may 
 enter into contracts to carry out the provisions of this chapter.

    Subd. 3.    Rules.  The commissioner shall adopt rules 
 under the Administrative Procedure Act to implement the 
 provisions of this chapter that directly affect the rights of or 
 processes available to the general public.  The rules have the 
 force and effect of law and may include but are not limited to: 

    (1) the processes for determining the extent of competition 
 for filling vacancies, for recruiting applicants, for conducting 
 competitive open examinations, for ranking candidates and 
 maintaining competitive open eligible lists, and for 
 certification and appointment of eligibles from competitive open 
 eligible lists; 

    (2) the process for effecting noncompetitive and qualifying 
 appointments; 

    (3) the process for temporary designation of positions in 
 the unclassified service and for effecting appointments to the 
 unclassified service; 

    (4) a statewide affirmative action program to include 
 requirements for agency affirmative action plans, statewide 
 policies and procedures, reporting requirements, accountability 
 and responsibility of employees in the executive branch, and 
 overall objectives of the program; 

    (5) conditions under which moving and other expenses may be 
 authorized and paid prior to appointment to persons who have 
 accepted state employment; 

    (6) procedures for administration of the code of ethics for 
 employees of the executive branch; 

    (7) examination procedures for candidates with disabilities 
 as described in section 43A.15, subdivision 14; and 

    (8) procedures or policies that affect the operation of or 
 participation in the public employees insurance program. 

    Subd. 4.    Administrative procedures.  The commissioner 
 shall develop administrative procedures, which are not subject 
 to the rulemaking provisions of the Administrative Procedure 
 Act, to effect provisions of chapter 43A which do not directly 
 affect the rights of or processes available to the general 
 public.  The commissioner may also adopt administrative 
 procedures, not subject to the Administrative Procedure Act, 
 which concern topics affecting the general public if those 
 procedures concern only the internal management of the 
 department or other agencies and if those elements of the topics 
 which affect the general public are the subject of department 
 rules.  

    Administrative procedures shall be reproduced and made 
 available for comment to agencies, employees, and appropriate 
 exclusive representatives certified pursuant to sections 179A.01 
 to 179A.25, for at least 15 days prior to implementation and 
 shall include but are not limited to: 

    (a) maintenance and administration of a plan of 
 classification for all positions in the classified service and 
 for comparisons of unclassified positions with positions in the 
 classified service; 

    (b) procedures for administration of collective bargaining 
 agreements and plans established pursuant to section 43A.18 
 concerning total compensation and the terms and conditions of 
 employment for employees; 

    (c) procedures for effecting all personnel actions internal 
 to the state service such as conduct of competitive promotional 
 examinations, ranking and certification of employees for 
 promotion, noncompetitive and qualifying appointments of 
 employees and leaves of absence; 

    (d) maintenance and administration of employee performance 
 appraisal, training and other programs; and 

    (e) procedures for pilots of the reengineered employee 
 selection process.  Employment provisions of this chapter, 
 associated personnel rules adopted under subdivision 3, and 
 administrative procedures established under clauses (a) and (c) 
 may be waived for the purposes of these pilots.  The pilots may 
 affect the rights of and processes available to members of the 
 general public seeking employment in the classified service.  
 The commissioner will provide public notice of any pilot 
 directly affecting the rights of and processes available to the 
 general public and make the administrative procedures available 
 for comment to the general public, agencies, employees, and 
 appropriate exclusive representatives certified pursuant to 
 sections 179A.01 to 179A.25 for at least 30 days prior to 
 implementation. 

    Subd. 5.    Precedence of collective bargaining 
 provisions.  A provision of an agreement entered into by the 
 commissioner pursuant to section 179A.22, subdivision 4, shall 
 supersede the provisions of any rule or administrative procedure 
 or portion thereof which is inconsistent with the agreement 
 unless the provision is found to violate existing law.  

    Subd. 6.    Payment for grievance settlements.  
 Notwithstanding any other law to the contrary, the commissioner 
 may authorize an appointing authority to pay an employee for 
 hours not worked, pursuant to the resolution of a grievance 
 through a formal grievance procedure established by a collective 
 bargaining agreement or one of the plans established pursuant to 
 section 43A.18.  

    Subd. 7.    Reporting.  The commissioner shall issue a 
 written report by February 1 and August 1 of each year to the 
 chair of the legislative coordinating commission.  The report 
 must list the number of appointments made under each of the 
 categories in section 43A.15, the number made to the classified 
 service other than under section 43A.15, and the number made 
 under section 43A.08, subdivision 2a, during the six-month 
 periods ending June 30 and December 31, respectively.  

    Subd. 8.    Donation of time.  Notwithstanding any law 
 to the contrary, the commissioner shall authorize the appointing 
 authority to permit the donation of up to three hours of 
 accumulated vacation time in each year by each employee who is a 
 member of law enforcement unit number 1 to their union 
 representative for the purpose of carrying out the duties of 
 office. 

    Subd. 9.    Experimental or research projects.  The 
 commissioner of employee relations may conduct experimental or 
 research projects designed to improve recruitment, selection, 
 referral, or appointment processes for the filling of state 
 classified positions. 

    The commissioner shall meet and confer with the affected 
 exclusive bargaining representative of state employees 
 concerning the design and implementation of experimental and 
 research projects under this subdivision. 

    Any provision in section 43A.02, except for subdivisions 33 
 and 38, sections 43A.07 to 43A.16, associated personnel rules 
 adopted under subdivision 3, or administrative procedures 
 established under subdivision 4, is waived for the purposes of 
 these projects.  The commissioner may not use an experimental or 
 research project under this section to transfer positions 
 between the unclassified and the classified service.  The number 
 of appointments under this subdivision may not exceed five 
 percent of the total number of appointments in the preceding 
 fiscal year, unless the commissioner authorizes appointments in 
 excess of five percent with the mutual agreement of any affected 
 bargaining unit. 

    The commissioner shall report by September 1 to the joint 
 subcommittee on employee relations the results of the 
 experimental research projects conducted in the preceding fiscal 
 year. 

    Subd. 10.    Equitable compensation compliance.  The 
 commissioner may adopt rules under the Administrative Procedure 
 Act to assure compliance with sections 471.991 to 471.999. 

    Subd. 11.    Training for agency rulemaking staff.  The 
 commissioner, in cooperation with the office of administrative 
 hearings, the attorney general, the revisor of statutes, and 
 experienced agency rulemaking staff, shall provide training to 
 agency staff involved in rulemaking, including information about 
 the availability of mediators through the office of 
 administrative hearings. 

    The commissioner may charge agency staff a registration fee 
 for attending this training.  The fee must be set at a level 
 that permits the commissioner to recover the costs, excluding 
 costs of staff time for staff positions funded through general 
 fund appropriations, of providing this training. 

    The office of administrative hearings, the attorney 
 general, agencies involved in providing this training, and the 
 revisor of statutes shall not assess the commissioner for the 
 cost of staff time to conduct the training provided under this 
 subdivision. 

    HIST: 1981 c 210 s 4; 1981 c 311 s 39; 1982 c 545 s 24; 1982 c 
 560 s 9-11; 1983 c 293 s 61; 1984 c 462 s 27; 1984 c 654 art 3 s 
 48; 1985 c 11 s 3; 1Sp1985 c 13 s 164; 1986 c 444; 1988 c 667 s 
 4; 1990 c 571 s 6-8; 1991 c 128 s 2; 1995 c 233 art 2 s 37; 1995 
 c 248 art 2 s 7; art 10 s 2; art 11 s 4; 1997 c 79 s 7-10; 1997 
 c 97 s 4; 1998 c 286 s 1; 1998 c 366 s 48; 1999 c 182 s 4 

     43A.044 Hazard identification and accident prevention. 

    (a) The commissioner of the department of employee 
 relations must operate a program of occupational hazard 
 identification and accident prevention for state agencies and 
 state employees, and shall provide the staff, equipment, and 
 facilities needed for the program.  The program must be offered 
 to all state agencies through the agency safety contact or other 
 designee; is consultative in nature; and must assist state 
 agencies with the goal of providing a safe work environment, 
 safe work methods, and hazard identification. 

    (b) The commissioner must cooperate with the department of 
 labor and industry, department of health, and department of 
 administration as well as other private and public community 
 agencies to assist in the objective of hazard identification and 
 accident prevention. 

    HIST: 1997 c 97 s 5 

     43A.045 Restructuring. 

    (a) It is the policy of the state of Minnesota that any 
 restructuring of executive branch agencies must include efforts 
 to ensure that fair and equitable arrangements are carried out 
 to protect the interests of executive branch employees and to 
 provide the best possible service to the public.  The 
 commissioner shall make an effort to train and retrain existing 
 employees for a changing work environment.  Where restructuring 
 may involve a loss of existing positions and employment, the 
 commissioner shall assist affected employees in finding suitable 
 employment. 

    (b) Options available to employees whose positions will be 
 eliminated by implementation of a restructuring plan must 
 include, at a minimum, job and training opportunities necessary 
 to qualify for another job in the same, an equal, or a lower 
 classification within their current department or in another 
 state agency. 

    (c) Implementation of this section, as well as procedures 
 for notifying employees affected by restructuring plans, must be 
 negotiated into collective bargaining agreements under chapter 
 179A.  Nothing in this section shall be construed as diminishing 
 any rights defined in collective bargaining agreements under 
 this chapter or chapter 179A. 

    HIST: 1991 c 345 art 1 s 67; 1993 c 192 s 75 

     43A.046 Staff reductions. 

    In order to maximize delivery of services to the public, if 
 layoffs of state employees are necessary, each agency with more 
 than 50 full-time equivalent employees must reduce at least the 
 same percentage of management and supervisory personnel as line 
 and support personnel. 

    HIST: 1997 c 202 art 2 s 31 

     43A.047 Contracted services. 

    (a) Executive agencies, including the Minnesota state 
 colleges and universities system, must demonstrate that they 
 cannot use available staff before hiring outside consultants or 
 services.  If use of consultants is necessary, agencies are 
 encouraged to negotiate contracts that will involve permanent 
 staff, so as to upgrade and maximize training of state employees.

    (b) If agencies reduce operating budgets, agencies must 
 give priority to reducing spending on professional and technical 
 service contracts before laying off permanent employees. 

    (c) Agencies must report to the commissioner of 
 administration by November 1 each year on implementation of this 
 section during the previous fiscal year.  The reports must 
 include amounts spent on professional and technical service 
 contracts during the previous fiscal year.  The commissioner 
 shall compile the reports into a uniform format and forward them 
 to the chairs of the senate finance and house ways and means 
 committees by November 15. 

    HIST: 1997 c 202 art 2 s 32; 1999 c 250 art 1 s 71 

     43A.05 Powers and responsibilities through the personnel 
  bureau. 

    Subdivision 1.    General.  The commissioner through the 
 personnel bureau shall perform the duties assigned in this 
 chapter.  The deputy for the personnel bureau shall perform any 
 duties delegated by the commissioner.  

    The commissioner's authority and responsibility shall 
 include but not be limited to maintenance of a classification 
 plan, assignment of all positions in the classified service to 
 job classes, maintenance and approval of total compensation 
 plans for all positions in the executive branch pursuant to the 
 provisions of section 43A.18 and other provisions of law; 
 preparation of examinations, rating of candidates for employment 
 and preparation of eligible lists; maintenance of employee 
 performance appraisal, training and affirmative action programs; 
 and maintenance and publication of logical career paths in the 
 classified civil service.  

    Subd. 2.    Requests for nonstate funds.  The 
 commissioner shall have the authority to review and comment upon 
 all requests for other than state appropriated funds by any 
 agency for personnel and labor relations purposes before any 
 funding request is made to a federal, local or private agency.  

    Subd. 3.    Commissioner's plan.  The commissioner shall 
 periodically develop and establish pursuant to this chapter a 
 commissioner's plan.  The commissioner shall submit the plan, 
 before becoming effective, to the legislative coordinating 
 commission for approval.  

    Subd. 4.    Time off in emergencies.  The commissioner 
 shall authorize appointing authorities to pay for time off in 
 emergencies.  The commissioner, after consultation with the 
 commissioner of public safety, may excuse employees from duty 
 with full pay in the event of a natural or other emergency, if 
 continued operation would involve a threat to the health or 
 safety of individuals.  Absence with pay shall not exceed 16 
 working hours at any one time unless the commissioner authorizes 
 a longer duration.  Authority to excuse employees from duty with 
 full pay on the campuses of the Minnesota state colleges and 
 universities is vested in the college and university presidents, 
 under guidelines established by the board of trustees of the 
 Minnesota state colleges and universities. 

    Subd. 5.    Comparability adjustments.  The commissioner 
 shall compile, subject to availability of funds and personnel, 
 and submit to the legislative coordinating commission by January 
 1 of each odd-numbered year a list showing, by bargaining unit, 
 and by plan for executive branch employees covered by a plan 
 established under section 43A.18, those female-dominated classes 
 and those male-dominated classes in state civil service for 
 which a compensation inequity exists based on comparability of 
 the value of the work.  The commissioner shall also submit to 
 the legislative coordinating commission, along with the list, an 
 estimate of the appropriation necessary for providing 
 comparability adjustments for classes on the list.  The 
 commission shall review and approve, disapprove, or modify the 
 list and proposed appropriation.  The commission's action must 
 be submitted to the full legislature.  The full legislature may 
 approve, reject, or modify the commission's action.  The 
 commission shall show the distribution of the proposed 
 appropriation among the bargaining units and among the plans 
 established under 43A.18.  Each bargaining unit and each plan 
 must be allocated that proportion of the total proposed 
 appropriation that equals the cost of providing adjustments for 
 the positions in the unit or plan approved by the commission for 
 comparability adjustments divided by the total cost of providing 
 adjustments for all positions on the list approved by the 
 commission for comparability adjustments.  Distribution of any 
 appropriated funds within each bargaining unit or plan must be 
 determined by collective bargaining agreements or by plans. 

    Subd. 6.    Allocation.  The amount recommended by the 
 legislative coordinating commission pursuant to subdivision 5 to 
 make comparability adjustments shall be submitted to the full 
 legislature by March 1 of each odd-numbered year.  The 
 legislature may accept, reject, or modify the amount 
 recommended.  The commissioner of finance, in consultation with 
 the commissioner of employee relations, shall allocate the 
 amount appropriated by the legislature, on a pro rata basis, if 
 necessary, to the proper accounts for distribution to incumbents 
 of classes which have been approved for comparability 
 adjustments.  

    Funds appropriated for purposes of comparability 
 adjustments for state employees shall be drawn exclusively from 
 and shall not be in addition to the funds appropriated for 
 salary supplements or other employee compensation.  Funds not 
 used for purposes of comparability adjustments shall revert to 
 the appropriate fund.  

    Subd. 7.    Human rights.  The commissioner of human 
 rights or any state court may use as evidence the results of any 
 job evaluation system established under subdivision 5 and the 
 reports compiled under subdivision 5 in any proceeding or action 
 alleging discrimination. 

    HIST: 1981 c 210 s 5; 1982 c 560 s 12; 1982 c 634 s 6,8; 1983 
 c 301 s 100; 1984 c 462 s 27; 1989 c 223 s 1; 1994 c 560 art 2 s 
 10; 1995 c 248 art 2 s 7; 1996 c 398 s 22; 1997 c 79 s 11,12 

     43A.06 Powers and responsibilities through the labor 
  relations bureau. 

    Subdivision 1.    General.  (a) The commissioner, 
 through the labor relations bureau, shall perform the duties 
 assigned to the commissioner by sections 3.855, 179A.01 to 
 179A.25 and this section.  

    (b) The deputy commissioner for the labor relations bureau 
 shall be the state labor negotiator for purposes of negotiating 
 and administering agreements with exclusive representatives of 
 employees and shall perform any other duties delegated by the 
 commissioner subject to the limitations in paragraph (c). 

    (c) The board of trustees of the Minnesota state colleges 
 and universities may exercise the powers under this section for 
 employees included in units 9, 10, 11, and 12 in section 
 179A.10, subdivision 2, except with respect to sections 43A.22 
 to 43A.31, which shall continue to be the responsibility of the 
 commissioner.  The commissioner of employee relations shall have 
 the right to review and comment to the Minnesota state colleges 
 and universities on the board's final proposals prior to 
 exchange of final positions with the designated bargaining units 
 as well as any requests for interest arbitration.  When 
 submitting a proposed collective bargaining agreement to the 
 legislative coordinating commission and the legislature under 
 section 3.855, subdivision 2, the board of trustees must use 
 procedures and assumptions consistent with those used by the 
 commissioner of employee relations in calculating the costs of 
 the proposed contract.  The legislative coordinating commission 
 must, when considering a collective bargaining agreement or 
 arbitration award submitted by the board of trustees, evaluate 
 market conditions affecting the employees in the bargaining 
 unit, equity with other bargaining units in the executive 
 branch, and the ability of the trustees and the state to fund 
 the agreement or award. 

    Subd. 2.    Hearings.  The commissioner shall represent 
 the state at hearings conducted by the commissioner of the 
 bureau of mediation services.  

    Subd. 3.    Collective bargaining.  The commissioner 
 through the labor relations bureau shall represent the state in 
 all collective bargaining between the state and exclusive 
 representatives, and shall represent the state in mediation and 
 arbitration of collective bargaining disputes.  

    Subd. 4.    Reports.  The commissioner shall report to 
 the legislative coordinating commission pursuant to section 
 3.855.  

    Subd. 5.    Interpretation of collective bargaining 
 agreements.  The commissioner shall be responsible for 
 management interpretation of all collective bargaining 
 agreements between the state and exclusive representatives and 
 provide management personnel with training in the interpretation 
 and application of these collective bargaining agreements.  

    Subd. 6.    Grievances; arbitration.  The commissioner 
 shall oversee the administration of all written grievances 
 arising under collective bargaining agreements between the state 
 and an exclusive representative and shall represent the state at 
 all grievance arbitrations.  

    Subd. 7.    Grievance settlement.  The commissioner 
 shall have final authority to decide if a grievance shall be 
 submitted to arbitration or if it shall be settled without 
 arbitration.  

    Subd. 8.    Unfair labor practice charges.  The 
 commissioner shall direct investigations and shall have 
 authority to decide whether agencies in the executive branch 
 shall settle unfair labor practice charges filed against the 
 employer, appointing authorities or their agents pursuant to 
 chapter 179A.  

    HIST: 1981 c 210 s 6; 1984 c 462 s 27; 1987 c 186 s 15; 1992 c 
 582 s 2; 1994 c 532 art 4 s 1; 1995 c 212 art 4 s 64; 1995 c 248 
 art 2 s 7; 1996 c 398 s 23; 1997 c 156 s 2; 1999 c 182 s 5 

     43A.07 Classified service. 

    Subdivision 1.    Classification plan.  The commissioner 
 shall maintain, revise and administer a classification plan.  

    Subd. 2.    Job classes and titles.  An appointing 
 authority shall notify the commissioner when a new position is 
 to be established in the classified service.  The commissioner 
 shall allocate the position to an appropriate class in the 
 classification plan or if the position cannot be allocated to an 
 existing class, establish a new class.  The commissioner shall 
 assign an appropriate salary rate or range to the class.  If the 
 class is in a bargaining unit under the provisions of section 
 179A.10, and there is an applicable provision in the collective 
 bargaining agreement the commissioner shall establish the salary 
 rate or range pursuant to the agreement.  

    The commissioner may independently conduct classification 
 studies or, upon request of a permanent employee, may 
 investigate the duties of a classified position.  If a request 
 is denied, the employee must be given a written explanation.  
 The commissioner shall investigate the duties of a classified 
 position upon request of an appointing authority.  The 
 commissioner may reclassify the position, change the title of 
 the position or establish a new class.  The commissioner shall 
 assign an appropriate salary rate or range to the class.  If the 
 class is in a collective bargaining unit under the provisions of 
 section 179A.10, and there is an applicable provision in the 
 collective bargaining agreement, the commissioner shall 
 establish the salary rate or range pursuant to the agreement. 

    Subd. 3.    Protested allocation or reclassification.  
 An appointing authority who is affected by a position allocation 
 or reclassification or an employee who is affected by a position 
 reclassification may protest the allocation or reclassification 
 in writing to the commissioner.  The commissioner shall review 
 the allocation or reclassification and may change the allocation 
 or reclassification decision.  This procedure shall not be 
 subject to contested case provisions of the Administrative 
 Procedure Act.  

    Subd. 4.    Effect of reclassification.  Except as 
 provided in section 43A.17, subdivision 5, the incumbent of a 
 position which has been reclassified shall continue in the 
 position only if the employee is eligible for and is appointed 
 to the position of the new class in accordance with the 
 provisions of this chapter and the rules, administrative 
 procedures or a collective bargaining agreement entered into 
 under sections 179A.01 to 179A.25 governing reallocation or 
 change in allocation of positions, promotion, transfer, and 
 demotion.  If the incumbent is ineligible to continue in the 
 position and is not transferred, promoted or demoted, the layoff 
 provisions of plans pursuant to section 43A.18 or a collective 
 bargaining agreement entered into under sections 179A.01 to 
 179A.25 shall apply.  Personnel changes required by the 
 reclassification of positions shall be completed within a 
 reasonable period of time, as prescribed by the commissioner, 
 following the reclassification notice to an appointing authority.

    Subd. 5.    Leaves to accept unclassified appointments.  
 An employee may be granted a leave of absence from a position in 
 the classified service to accept a position in the unclassified 
 service.  Upon request, during the unclassified appointment or 
 within 60 days of the end of the unclassified appointment, the 
 employee shall be reappointed in the agency from which the 
 employee was granted the leave, to a classified position 
 comparable to that held immediately prior to being appointed to 
 the unclassified position.  

    Subd. 6.    Rights of incumbents of declassified 
 positions.  Except for just cause, an incumbent with permanent 
 status shall not be removed from a position which is 
 declassified for a period of one year following the 
 declassification.  An appointing authority may remove an 
 incumbent of a declassified position after one year with 30 
 days' prior notice.  At any time after the declassification, and 
 prior to the end of the 30-day notice period, if so requested, 
 the employee shall be appointed within the same agency to a 
 classified position comparable to the position that was 
 declassified or, if a comparable position is unavailable, to a 
 position in that agency comparable to that held immediately 
 prior to being appointed to the declassified position.  This 
 section applies only to the incumbent at the time the position 
 is declassified and not to employees subsequently appointed to 
 the declassified position. 

    HIST: 1981 c 210 s 7; 1984 c 462 s 27; 1Sp1985 c 13 s 165; 
 1986 c 444; 1997 c 97 s 6; 1999 c 182 s 6,7 

     43A.071 Service worker. 

    The disability levels and types covered under the service 
 worker category in the state civil service may include persons 
 with physical disabilities, mental health disabilities, and 
 mental retardation.  

    HIST: 1987 c 232 s 1 

     43A.08 Unclassified service. 

    Subdivision 1.    Unclassified positions.  Unclassified 
 positions are held by employees who are: 

    (1) chosen by election or appointed to fill an elective 
 office; 

    (2) heads of agencies required by law to be appointed by 
 the governor or other elective officers, and the executive or 
 administrative heads of departments, bureaus, divisions, and 
 institutions specifically established by law in the unclassified 
 service; 

    (3) deputy and assistant agency heads and one confidential 
 secretary in the agencies listed in subdivision 1a and in the 
 office of strategic and long-range planning; 

    (4) the confidential secretary to each of the elective 
 officers of this state and, for the secretary of state, state 
 auditor, and state treasurer, an additional deputy, clerk, or 
 employee; 

    (5) intermittent help employed by the commissioner of 
 public safety to assist in the issuance of vehicle licenses; 

    (6) employees in the offices of the governor and of the 
 lieutenant governor and one confidential employee for the 
 governor in the office of the adjutant general; 

    (7) employees of the Washington, D.C., office of the state 
 of Minnesota; 

    (8) employees of the legislature and of legislative 
 committees or commissions; provided that employees of the 
 legislative audit commission, except for the legislative 
 auditor, the deputy legislative auditors, and their confidential 
 secretaries, shall be employees in the classified service; 

    (9) presidents, vice-presidents, deans, other managers and 
 professionals in academic and academic support programs, 
 administrative or service faculty, teachers, research 
 assistants, and student employees eligible under terms of the 
 federal Economic Opportunity Act work study program in the 
 Perpich center for arts education and the Minnesota state 
 colleges and universities, but not the custodial, clerical, or 
 maintenance employees, or any professional or managerial 
 employee performing duties in connection with the business 
 administration of these institutions; 

    (10) officers and enlisted persons in the national guard; 

    (11) attorneys, legal assistants, and three confidential 
 employees appointed by the attorney general or employed with the 
 attorney general's authorization; 

    (12) judges and all employees of the judicial branch, 
 referees, receivers, jurors, and notaries public, except 
 referees and adjusters employed by the department of labor and 
 industry; 

    (13) members of the state patrol; provided that selection 
 and appointment of state patrol troopers must be made in 
 accordance with applicable laws governing the classified 
 service; 

    (14) chaplains employed by the state; 

    (15) examination monitors and intermittent training 
 instructors employed by the departments of employee relations 
 and commerce and by professional examining boards and 
 intermittent staff employed by the technical colleges for the 
 administration of practical skills tests and for the staging of 
 instructional demonstrations; 

    (16) student workers; 

    (17) executive directors or executive secretaries appointed 
 by and reporting to any policy-making board or commission 
 established by statute; 

    (18) employees unclassified pursuant to other statutory 
 authority; 

    (19) intermittent help employed by the commissioner of 
 agriculture to perform duties relating to pesticides, 
 fertilizer, and seed regulation; and 

    (20) the administrators and the deputy administrators at 
 the state academies for the deaf and the blind. 

    Subd. 1a.    Additional unclassified positions.  
 Appointing authorities for the following agencies may designate 
 additional unclassified positions according to this 
 subdivision:  the departments of administration; agriculture; 
 commerce; corrections; economic security; children, families, 
 and learning; employee relations; trade and economic 
 development; finance; health; human rights; labor and industry; 
 natural resources; public safety; public service; human 
 services; revenue; transportation; and veterans affairs; the 
 housing finance and pollution control agencies; the state 
 lottery; the state board of investment; the office of 
 administrative hearings; the office of environmental assistance; 
 the offices of the attorney general, secretary of state, state 
 auditor, and state treasurer; the Minnesota state colleges and 
 universities; the higher education services office; the Perpich 
 center for arts education; and the Minnesota zoological board. 

    A position designated by an appointing authority according 
 to this subdivision must meet the following standards and 
 criteria:  

    (1) the designation of the position would not be contrary 
 to other law relating specifically to that agency; 

    (2) the person occupying the position would report directly 
 to the agency head or deputy agency head and would be designated 
 as part of the agency head's management team; 

    (3) the duties of the position would involve significant 
 discretion and substantial involvement in the development, 
 interpretation, and implementation of agency policy; 

    (4) the duties of the position would not require primarily 
 personnel, accounting, or other technical expertise where 
 continuity in the position would be important; 

    (5) there would be a need for the person occupying the 
 position to be accountable to, loyal to, and compatible with, 
 the governor and the agency head, the employing statutory board 
 or commission, or the employing constitutional officer; 

    (6) the position would be at the level of division or 
 bureau director or assistant to the agency head; and 

    (7) the commissioner has approved the designation as being 
 consistent with the standards and criteria in this subdivision. 

    Subd. 1b.    Exception.  The provisions of Laws 1982, 
 chapter 634 do not apply to the positions contained in Minnesota 
 Statutes 1981 Supplement, section 43A.08, subdivision 1, clause 
 (g). 

    Subd. 2. Repealed, 1982 c 560 s 65 

    Subd. 2a.    Temporary unclassified positions.  The 
 commissioner, upon request of an appointing authority, may 
 authorize the temporary designation of a position in the 
 unclassified service.  The commissioner may make this 
 authorization only for professional, managerial or supervisory 
 positions which are fully anticipated to be of limited duration. 

    Subd. 3.    Unclassified titles; salary rates and ranges; 
 investigations.  Except for those positions listed in section 
 43A.18, subdivisions 4 and 6, when a new position is to be 
 established in the unclassified service, the commissioner shall 
 compare the position to a class in the classified service if a 
 comparable class exists or if not, establish a salary rate or 
 range and official title for the position. 

    The commissioner shall independently or upon request of an 
 appointing authority or employee investigate the duties of a 
 position unclassified under provisions of subdivision 1a or 
 rule.  If the commissioner determines the position is 
 incorrectly placed in the unclassified service, the commissioner 
 shall place the position in the classified service.  If the 
 commissioner determines the position is improperly compared or 
 assigned to an inappropriate salary range, the commissioner 
 shall recompare the position, change the title or establish a 
 new title or reassign the position to a different salary rate or 
 range. 

    If a new title is established for the position or if the 
 position is reassigned to a different salary rate or range and 
 the position will be covered by a bargaining unit under the 
 provisions of section 179A.10, and if there is an applicable 
 provision in a collective bargaining agreement, the commissioner 
 shall establish the salary rate or range pursuant to the 
 collective bargaining agreement. 

    Subd. 4.    Length of service for student workers.  A 
 person may not be employed as a student worker in the 
 unclassified service under subdivision 1 for more than 36 
 months.  Employment at a school that a student attends is not 
 counted for purposes of this 36-month limit.  Student workers in 
 the Minnesota department of transportation SEEDS program who are 
 actively involved in a four-year degree program preparing for a 
 professional career job in the Minnesota department of 
 transportation may be employed as a student worker for up to 48 
 months. 

    HIST: 1981 c 37 s 2; 1981 c 210 s 8; 1982 c 560 s 13-16; 1982 
 c 634 s 9; 1983 c 258 s 11; 1983 c 289 s 10; 1984 c 462 s 27; 
 1984 c 544 s 79; 1984 c 640 s 29; 1Sp1985 c 13 s 166; 1Sp1985 c 
 14 art 9 s 75; 1986 c 444; 1987 c 186 s 3; 1987 c 312 art 1 s 
 13; 1987 c 398 art 10 s 5,6; 1988 c 667 s 5; 1988 c 686 art 1 s 
 49; 1989 c 269 s 38; 1989 c 326 art 5 s 51; 1989 c 329 art 12 s 
 1; 1989 c 335 art 1 s 269; 1990 c 375 s 3; 1990 c 571 s 9; 1990 
 c 589 art 1 s 1; 1991 c 233 s 109; 1991 c 238 art 1 s 2-4; 1992 
 c 567 art 3 s 3,4; 1994 c 483 s 1; 1994 c 532 art 4 s 2; 1994 c 
 560 art 2 s 11,12; 1995 c 212 art 3 s 59; art 4 s 64; 1995 c 247 
 art 2 s 54; 1995 c 248 art 10 s 3; 1Sp1995 c 3 art 16 s 13; 1996 
 c 395 s 18; 1996 c 412 art 9 s 19; 1996 c 425 s 3; 1997 c 79 s 
 13,14; 1999 c 241 art 10 s 8 

    43A.081 Subdivision 1. Repealed, 1990 c 571 s 49 

    Subd. 2. Repealed, 1990 c 571 s 49 

    Subd. 3. Repealed, 1982 c 560 s 65 

    Subd. 4. Repealed, 1982 c 560 s 65 

    Subd. 5. Repealed, 1990 c 571 s 49 

  43A.082 Repealed, 1996 c 310 s 1 

     43A.09 Recruitment. 

    The commissioner in cooperation with appointing authorities 
 of all state agencies shall maintain an active recruiting 
 program publicly conducted and designed to attract sufficient 
 numbers of well-qualified people to meet the needs of the civil 
 service, and to enhance the image and public esteem of state 
 service employment.  Special emphasis shall be given to 
 recruitment of protected group members to assist state agencies 
 in meeting affirmative action goals to achieve a balanced work 
 force.  

    HIST: 1981 c 210 s 9 

     43A.10 Examinations; eligibility to compete. 

    Subdivision 1.    General.  Entrance to the classified 
 service shall be through successful competition in an 
 examination and certification and appointment from an eligible 
 list except as provided in section 43A.15 or other law.  

    Subd. 2.    Examination criteria.  All examinations for 
 positions in the classified service shall be job related and 
 designed to fairly assess ability to perform the duties of the 
 class for which the examination is given.  

    Subd. 3.    Facilities furnished examiners.  The 
 authorities having control of public buildings in political 
 subdivisions of the state and school districts, upon written 
 request of the commissioner, shall furnish convenient facilities 
 for the administration of examinations.  Upon such request, it 
 shall be the duty of state and local authorities and employees, 
 as it is consistent with their other duties, to aid in carrying 
 out the provisions of this section.  Campuses of the Minnesota 
 state colleges and universities may charge the commissioner for 
 actual costs incurred in providing facilities for examinations, 
 provided that the costs were incurred due solely to the 
 examination. 

    Subd. 4.    Candidates, eligibles; expenses.  The 
 commissioner or an appointing authority may pay travel expenses 
 incurred by candidates or eligibles invited for oral 
 examinations or employment interviews in the manner and amounts 
 authorized by the commissioner.  

    Subd. 5.    Eligibility for competitive open examinations. 
  Competitive open examinations shall, upon public notice, be 
 open to all applicants who meet reasonable job-related 
 requirements fixed by the commissioner.  

    Subd. 6.    Eligibility for competitive promotional 
 examinations.  Competitive promotional examinations shall be 
 open only to employees of the civil service, the Minnesota state 
 retirement system, the public employees retirement association, 
 and the teacher's retirement association.  The commissioner may 
 require that competition be extended to all employees as defined 
 above or may limit competition to employees of one or more 
 agencies or organizational units thereof or to employees meeting 
 specified employment conditions.  

    Subd. 7.    Examination accommodations.  Upon request, 
 the commissioner shall provide examination accommodations to a 
 candidate with a disability that does not prevent performance of 
 the duties of the class.  The accommodations must provide an 
 opportunity to fairly examine the ability of the candidate to 
 perform the duties of the class notwithstanding the disability 
 but must preserve, to the extent feasible, the validity of the 
 examination process and equitable comparison of examination 
 scores with competitors without disabilities.  

    Subd. 8.    Eligibility for qualified disabled 
 examinations.  The commissioner shall establish alternative 
 examination methods to assess the qualifications of applicants 
 for a competitive open or competitive promotional examination 
 who have a disability that does not prevent performance of the 
 duties of the class but that cannot be accommodated in the 
 regular examination process.  Alternative examination methods 
 offered must allow candidates for competitive open and 
 competitive promotional exams to demonstrate possession of the 
 same knowledge, skills, and abilities essential to satisfactory 
 performance in the job class without compromising inferences 
 about other candidates' qualifications. 

    HIST: 1981 c 210 s 10; 1983 c 39 s 1; 1984 c 544 s 80; 1984 c 
 642 s 1; 1985 c 11 s 4; 1Sp1985 c 13 s 167; 1986 c 444; 1987 c 
 232 s 2; 1990 c 571 s 10,11; 1995 c 248 art 10 s 4; 1996 c 398 s 
 24 

     43A.11 Veteran's preference. 

    Subdivision 1.    Creation.  Recognizing that training 
 and experience in the military services of the government and 
 loyalty and sacrifice for the government are qualifications of 
 merit which cannot be readily assessed by examination, a 
 veteran's preference shall be available pursuant to this section 
 to a veteran as defined in section 197.447.  

    Subd. 2.    Restrictions.  Veteran's preference credit 
 under this section may not be used by any veteran who is 
 currently receiving or is eligible to receive a monthly 
 veteran's pension based exclusively on length of military 
 service.  

    Subd. 3.    Nondisabled veteran's credit.  There shall 
 be added to the competitive open examination rating of a 
 nondisabled veteran, who so elects, a credit of five points 
 provided that the veteran obtained a passing rating on the 
 examination without the addition of the credit points. 

    Subd. 4.    Disabled veteran's credit.  There shall be 
 added to the competitive open examination rating of a disabled 
 veteran, who so elects, a credit of ten points provided that the 
 veteran obtained a passing rating on the examination without the 
 addition of the credit points.  There shall be added to the 
 competitive promotional examination rating of a disabled 
 veteran, who so elects, a credit of five points provided that 
 (a) the veteran obtained a passing rating on the examination 
 without the addition of the credit points and (b) the veteran is 
 applying for a first promotion after securing public employment. 

    Subd. 5.    Disabled veteran; definitions.  For the 
 purpose of the preference to be used in securing appointment 
 from a competitive open examination, "disabled veteran" means a 
 person who has a compensable service connected disability as 
 adjudicated by the United States Veterans Administration, or by 
 the retirement board of one of the several branches of the armed 
 forces, which disability is existing at the time preference is 
 claimed.  For purposes of the preference to be used in securing 
 appointment from a competitive promotional examination, 
 "disabled veteran" means a person who, at the time of election 
 to use a promotional preference, is entitled to disability 
 compensation under laws administered by the veterans 
 administration for a permanent service connected disability 
 rated at 50 percent or more.  

    Subd. 6.    Preference for spouses.  A preference 
 available pursuant to this section may be used by the surviving 
 spouse of a deceased veteran and by the spouse of a disabled 
 veteran who because of the disability is unable to qualify.  

    Subd. 7.    Ranking of veterans.  An eligible with a 
 rating augmented by veteran's preference shall be entered on an 
 eligible list ahead of a nonveteran with the same rating. 

    Subd. 8.    Notification.  A governmental agency when 
 notifying eligibles that they have passed examinations shall 
 show the final examination ratings preference credits and shall 
 notify eligibles that they may elect to use veteran's preference 
 to augment passing ratings. 

    Subd. 9.    Rejection; explanation.  If the appointing 
 authority rejects a certified eligible who has received 
 veteran's preference, the appointing authority shall notify the 
 eligible in writing of the reasons for the rejection.  

    HIST: 1981 c 210 s 11; 1982 c 560 s 17-20; 1984 c 468 s 1; 
 1984 c 609 s 1; 1985 c 248 s 85; 1Sp1985 c 16 art 2 s 8; 1986 c 
 444 

     43A.12 Ranking of eligibles. 

    Subdivision 1.    General.  The commissioner shall 
 prepare eligible lists as provided in this section.  

    Subd. 2.    Layoff lists.  On layoff lists former 
 employees of the class shall be ranked as provided in collective 
 bargaining agreements, the plans established pursuant to section 
 43A.18, rules, or procedures implemented pursuant to section 
 43A.04, subdivision 4.  

    Subd. 3.    Reemployment lists.  On reemployment lists 
 former employees of the class with satisfactory prior service 
 ratings shall be ranked as provided in collective bargaining 
 agreements, the plans established pursuant to section 43A.18, 
 rules, or procedures implemented pursuant to section 43A.04, 
 subdivision 4.  

    Subd. 4.    Competitive lists.  On competitive open and 
 competitive promotional lists eligibles shall be ranked 
 according to their ratings in examinations and the veteran's 
 preference provisions of section 43A.11.  

    Subd. 5.    Qualified disabled lists.  On qualified 
 disabled lists eligibles must be ranked in alphabetical order. 

    Subd. 6.    Term of eligibility.  The term of 
 eligibility of eligibles on lists shall be determined by the 
 commissioner but shall not be less than six months.  

    HIST: 1981 c 210 s 12; 1990 c 571 s 12 

     43A.13 Certification of eligibles. 

    Subdivision 1.    General.  Upon request of an 
 appointing authority the commissioner shall certify eligibles 
 from an eligible list determined appropriate by the 
 commissioner, or as provided in collective bargaining 
 agreements, rules or section 43A.04, subdivision 4.  The 
 commissioner may limit certification to those eligibles who meet 
 special qualifications documented by an appointing authority and 
 approved by the commissioner as job-related and necessary for 
 satisfactory performance of a specific vacant position.  The 
 commissioner shall certify qualified available eligibles as 
 provided in this section.  Where the vacancy to be filled is in 
 a position covered by a collective bargaining agreement, the 
 list of certified eligibles shall be made available upon request 
 to the exclusive representative as defined in sections 179A.01 
 to 179A.25. 

    Subd. 2.    Layoff.  If an agency has a layoff list for 
 the class and employment conditions of the vacancy to be filled, 
 the commissioner shall certify eligibles as provided in 
 collective bargaining agreements, plans established under 
 section 43A.18, rules, or procedures implemented under section 
 43A.04, subdivision 4.  

    The commissioner, in accordance with collective bargaining 
 agreements or plans established under section 43A.18, may also 
 afford employees on permanent layoff from state service the 
 opportunity to be tested for existing competitive open and 
 promotional eligible lists for classes equal to or lower than 
 those from which they are on layoff.  Candidates tested under 
 this procedure who obtain passing scores are eligible in 
 accordance with the ranking and certification provisions of 
 section 43A.12 and this section. 

    Subd. 3.    Reemployment.  The commissioner may certify 
 any eligible on the reemployment list for the class. 

    Subd. 4.    Competitive open.  (a) For positions to be 
 filled by competitive open examination, the commissioner shall 
 certify the first 20 eligibles on the list plus those eligibles 
 having the same score as the 20th eligible certified. 

    (b) When the position to be filled by competitive open 
 examination is in a class for which the initially established 
 eligible list contained the names of more than 200 eligibles and 
 that list has existed for more than 12 months and been referred 
 to more than ten vacancies, the commissioner shall certify the 
 first 40 eligibles on the list plus those eligibles having the 
 same score as the 40th eligible certified. 

    Subd. 5.    Competitive promotional.  For positions to 
 be filled by competitive promotional examination limited to 
 employees of one or more agencies or organizational units, the 
 commissioner shall certify the first ten eligibles on the list 
 plus those eligibles having the same score as the tenth eligible 
 certified.  For positions to be filled by competitive 
 promotional examination extended to all employees of the civil 
 service, the commissioner shall certify the first 20 eligibles 
 on the list, plus those eligibles having the same score as the 
 20th eligible certified. 

    Subd. 6.    Qualified disabled.  The commissioner shall 
 refer all qualified disabled candidates with eligibles from the 
 competitive open or competitive promotional list established 
 from the same examination announcement. 

    Subd. 7.    Expanded certification.  When the 
 commissioner determines that a disparity as defined in rules 
 exists between an agency's work force and its affirmative action 
 plan approved in accordance with section 43A.19, the 
 commissioner shall ensure to the extent possible that eligibles 
 who are members of the protected groups for which the disparity 
 exists are certified for appointment.  When fewer than two 
 eligibles of each protected group for which a disparity has been 
 determined to exist would be certified under subdivisions 4 and 
 5, the commissioner shall certify two eligibles from each 
 protected group for which a disparity exists or four from each 
 group for which a disparity exists if the number of names 
 referred has been increased under subdivision 4, paragraph (b).  
 Implementation of this subdivision may not be deemed a violation 
 of other provisions of this chapter or chapter 363. 

    Subd. 8.    Refusal to certify.  The commissioner may 
 refuse to certify an eligible who (a) is found to lack any of 
 the requirements established for the examination for which the 
 eligible has applied, (b) has been dismissed from the public 
 service for delinquency or misconduct, (c) has been dismissed 
 from the same or a similar classification within the civil 
 service for unsatisfactory job performance, (d) has, directly or 
 indirectly, given or promised to give anything of value to any 
 person in connection with the eligible's examination, 
 appointment, or proposed appointment, or (e) has made a false 
 statement of any material fact or practiced or attempted to 
 practice any deception or fraud in the application, or 
 examination or in securing eligibility or appointment.  

    When the commissioner refuses to certify an eligible, the 
 commissioner shall, upon request of the eligible refused, 
 furnish the eligible a statement of the reasons for the 
 refusal.  Upon receipt of relevant information, the commissioner 
 shall reconsider the refusal and may certify the eligible.  

    Subd. 9. Repealed, 1999 c 182 s 20 

    HIST: 1981 c 210 s 13; 1982 c 560 s 21-23; 1984 c 462 s 27; 
 1987 c 186 s 4,5; 1990 c 571 s 13-18; 1991 c 128 s 3; 1995 c 248 
 art 10 s 5; 1997 c 79 s 15; 1999 c 182 s 8 

     43A.14 Appointments. 

    All appointments to the classified service shall be based 
 upon merit and ability to perform the duties of the position and 
 the needs of the employing agency, including the need to achieve 
 and maintain a representative work force.  For employees in a 
 bargaining unit as defined in section 179A.10 appointments shall 
 be subject to applicable provisions of collective bargaining 
 agreements.  

    HIST: 1981 c 210 s 14; 1984 c 462 s 27 

     43A.15 Noncompetitive and qualifying appointments. 

    Subdivision 1.    General.  Positions in the classified 
 service may be filled other than by appointment from eligible 
 lists only as provided in this section or other law, provided 
 that appointments made pursuant to subdivisions 5, 6, 9, 10, 11, 
 and 12 shall be subject to applicable provisions of collective 
 bargaining agreements.  

    Subd. 2.    Emergency appointments.  An appointing 
 authority may make an emergency appointment for up to 30 working 
 days.  If necessary, the commissioner may grant an extension of 
 the emergency appointment for 15 additional working days.  No 
 person may be employed in any one agency on an emergency basis 
 for more than 45 working days in any 12-month period.  

    Subd. 3.    Temporary appointments.  The commissioner 
 may authorize an appointing authority to make a temporary 
 appointment of up to six months.  The commissioner may, in the 
 best interest of the state, grant an extension of a temporary 
 appointment or approve a temporary appointment to fill a vacancy 
 created by an approved leave of absence to a maximum period of 
 one year.  When practicable, the commissioner may certify any 
 qualified eligible from an eligible list for the temporary 
 appointment, but may authorize the appointment of any person 
 deemed qualified by the appointing authority.  

    No person shall be employed on a temporary basis in any one 
 agency for more than 12 months in any 24-month period.  

    Subd. 4.    Provisional appointments.  The commissioner 
 may authorize an appointing authority to make a provisional 
 appointment if there is an urgent reason for filling a vacancy 
 and no person on an incomplete certification is suitable or 
 available for appointment.  

    No person shall be provisionally appointed unless the 
 person has passed an appropriate qualifying examination or is 
 qualified in all respects except for completion of a licensure 
 or certification requirement.  To the extent possible, the 
 commissioner shall ensure that provisional appointments are kept 
 to a minimum.  

    No person shall be employed on a provisional basis for more 
 than six months unless the commissioner grants an extension to a 
 maximum of 12 months in the best interest of the state.  No 
 extension may be granted beyond 12 months except for persons 
 provisionally appointed to physician positions or other 
 positions requiring licensure or certification where there is a 
 lack of eligibles.  

    At the request of an appointing authority, the commissioner 
 may authorize the probationary appointment of a provisional 
 appointee who has performed satisfactorily for at least 60 days. 

    Subd. 5.    Noncompetitive promotions.  The commissioner 
 may authorize an appointing authority to promote the incumbent 
 with permanent or probationary status to a reallocated 
 classified position.  

    Subd. 6.    Appointments through transfer or demotion.  
 The commissioner may authorize the transfer or demotion of an 
 employee in the classified service within an agency or between 
 agencies.  Prior to authorizing a transfer or demotion, the 
 commissioner shall determine that the employee to be transferred 
 or demoted is qualified for the new position.  An authorized 
 transfer may result in the movement of an employee between 
 agencies in the same class or between or within agencies in 
 different classes provided that the compensation for the classes 
 is similar. 

    The commissioner may enter into arrangements with public 
 personnel agencies in other jurisdictions for the purpose of 
 effecting transfers or voluntary demotions of employees between 
 jurisdictions. 

    Subd. 7.    Appointments for unclassified incumbents of 
 newly classified positions.  The commissioner may authorize 
 the probationary appointment of an incumbent who has passed a 
 qualifying examination and who has served at least one year in 
 an unclassified position which has been placed in the classified 
 service by proper authority.  

    Subd. 8.    Exceptional appointments.  Where a position 
 requires exceptional qualifications of a scientific, 
 professional or expert character and competition is 
 impracticable, the commissioner may, at the request of an 
 appointing authority, authorize the probationary appointment of 
 a designated person possessing the required exceptional 
 qualifications.  

    Subd. 9.    Labor service appointments.  The 
 commissioner shall designate classes involving unskilled labor 
 as comprising a labor service and shall authorize appointing 
 authorities to make appointments to such classes without prior 
 approval.  

    Subd. 10.    Routine service and entry clerical 
 appointments.  The commissioner may authorize the 
 administration of a qualifying selection process if a class is 
 of a routine, service nature involving unskilled tasks, the 
 performance of which cannot be directly related to 
 qualifications beyond a minimum competency level.  The 
 commissioner may also authorize the administration of qualifying 
 skill tests for entry level clerical positions as an alternative 
 to certification from an eligible list as provided in section 
 43A.13.  

    Subd. 11.    Appointments to positions in shortage 
 occupations.  The commissioner may designate classifications 
 for which qualified applicants are in critically short supply 
 and may develop recruitment, qualifying examination and referral 
 processes as will provide agencies opportunity to make prompt 
 appointments.  

    Subd. 12.    Work-training appointments.  The 
 commissioner may authorize the probationary appointment of 
 persons who successfully complete on-the-job state training 
 programs which have been approved by the commissioner.  

    Subd. 13.    Revenue seasonal employees.  The 
 commissioner may authorize the administration of a qualifying 
 selection process for the filling of seasonal positions in the 
 department of revenue used in the processing of returns and 
 providing information during the tax season.  The commissioner 
 of revenue may consider any candidate found qualified through 
 this process for probationary appointment. 

    Subd. 14.    On-the-job demonstration examination and 
 appointment.  The commissioner shall establish qualifying 
 procedures for candidates whose disabilities are of such a 
 severe nature that the candidates are unable to demonstrate 
 their abilities in competitive and qualified disabled 
 examination processes.  The qualifying procedures must consist 
 of up to 700 hours on-the-job trial work experience which will 
 be in lieu of a competitive examination and for which the 
 disabled person has the option of being paid or unpaid.  Up to 
 three persons with severe disabilities and their job coach may 
 be allowed to demonstrate their job competence as a unit through 
 the on-the-job trial work experience examination procedure.  
 This work experience must be limited to candidates for 
 appointment, promotion, or transfer for which there is no 
 reasonable accommodation in the examination process. 

    The commissioner may authorize the probationary appointment 
 of a candidate based on the request of the appointing authority 
 that documents that the candidate has successfully demonstrated 
 qualifications for the position through completion of an 
 on-the-job trial work experience.  The implementation of this 
 subdivision may not be deemed a violation of chapter 43A or 363. 

    Subd. 15.    Reinstatement.  An appointing authority may 
 directly reinstate a person who is a former permanent or 
 probationary employee of the job class, within four years of 
 separation from the class. 

    HIST: 1981 c 210 s 15; 1982 c 560 s 24,25; 1Sp1985 c 13 s 168; 
 1988 c 667 s 6; 1990 c 571 s 19; 1995 c 248 art 10 s 6; 1999 c 
 182 s 9,10 

     43A.16 Probationary periods. 

    Subdivision 1.    General.  All unlimited appointments 
 to positions in the classified service except as provided in 
 this subdivision shall be for a probationary period the duration 
 of which shall be determined through collective bargaining 
 agreements or plans established pursuant to section 43A.18 but 
 which shall not be less than 30 days of full-time equivalent 
 service nor more than two years of full-time equivalent 
 service.  An appointing authority may require a probationary 
 period for transfers, reemployments, reinstatements, voluntary 
 demotions, and appointments from layoff lists of former 
 employees of a different appointing authority.  For employees in 
 a bargaining unit as defined in section 179A.10 the requirement 
 of such a probationary period shall be subject to applicable 
 provisions of collective bargaining agreements.  

    Subd. 2.    Termination during probationary period.  
 There is no presumption of continued employment during a 
 probationary period.  Terminations or demotions may be made at 
 any time during the probationary period subject to the 
 provisions of this section and collective bargaining agreements 
 or plans established pursuant to section 43A.18.  

    If during the probationary period an employee with 
 permanent status is dismissed for inability to perform the 
 duties of the new position or for other cause not related to 
 misconduct or delinquency, the employee shall be restored to a 
 position in the employee's former class and agency.  

    HIST: 1981 c 210 s 16; 1984 c 462 s 27 

     43A.17 Salary limits, rates, ranges and exceptions. 

    Subdivision 1.    Salary limits.  As used in 
 subdivisions 1 to 9, "salary" means hourly, monthly, or annual 
 rate of pay including any lump-sum payments and cost-of-living 
 adjustment increases but excluding payments due to overtime 
 worked, shift or equipment differentials, work out of class as 
 required by collective bargaining agreements or plans 
 established under section 43A.18, and back pay on reallocation 
 or other payments related to the hours or conditions under which 
 work is performed rather than to the salary range or rate to 
 which a class is assigned.  For presidents of state 
 universities, "salary" does not include a housing allowance 
 provided through a compensation plan approved under section 
 43A.18, subdivision 3a. 

    The salary, as established in section 15A.0815, of the head 
 of a state agency in the executive branch is the upper limit on 
 the salaries of individual employees in the agency.  However, if 
 an agency head is assigned a salary that is lower than the 
 current salary of another agency employee, the employee retains 
 the salary, but may not receive an increase in salary as long as 
 the salary is above that of the agency head.  The commissioner 
 may grant exemptions from these upper limits as provided in 
 subdivisions 3 and 4. 

    Subd. 2.    General compensation.  For classes or 
 positions covered under the provisions of section 43A.18, 
 subdivision 1, the commissioner shall negotiate compensation.  
 For classes or positions covered under the provisions of section 
 43A.18, subdivisions 2 and 3, the commissioner shall establish 
 compensation.  Employees covered under section 43A.18 shall 
 receive salary at the appropriate single rate or within the 
 limits of the salary range to which their class is assigned or 
 their position compared except for any lump sum payments 
 including cost of living lump sum payments.  The commissioner 
 may grant further exemptions from this subdivision as provided 
 in subdivisions 3, 5, 6, and 7.  

    Subd. 3.    Unusual employment situations.  (a) Upon the 
 request of the appointing authority, and when the commissioner 
 determines that changes in employment situations create 
 difficulties in attracting or retaining employees, the 
 commissioner may approve an unusual employment situation 
 increase to advance an employee within the compensation plan.  

    (b) If the commissioner determines that a position requires 
 special expertise necessitating a higher salary to attract or 
 retain qualified persons, the commissioner may grant an 
 exemption not to exceed 120 percent of the salary of the head of 
 the agency or the maximum rate established for the position, 
 whichever is less.  

    (c) The following conditions apply to a request under 
 paragraph (a) to advance an employee within a compensation plan 
 or under paragraph (b) to exceed the salary of the agency head: 

    (1) the appointing authority making the request must submit 
 a detailed written statement for each position contained in the 
 request, specifying the changes in employment situations that 
 create difficulties in attracting or retaining an employee for 
 the position; 

    (2) the commissioner shall review each proposal giving due 
 consideration to salary rates paid to other employees in the 
 same class and agency and, if other conditions in this paragraph 
 are met, may approve any request that in the commissioner's 
 judgment is in the best interest of the state; 

    (3) the action must be consistent with applicable 
 provisions of collective bargaining agreements or plans adopted 
 under section 43A.18; 

    (4) each increase or exemption must be separately 
 documented for each employee or position and may not be applied 
 to groups of employees; and 

    (5) the commissioner shall report the granting of a request 
 to the chair of the legislative coordinating commission within 
 three working days. 

    Subd. 4.    Exceptions.  (a) The commissioner may 
 without regard to subdivision 1 establish special salary rates 
 and plans of compensation designed to attract and retain 
 exceptionally qualified doctors of medicine.  These rates and 
 plans shall be included in the commissioner's plan.  In 
 establishing salary rates and eligibility for nomination for 
 payment at special rates, the commissioner shall consider the 
 standards of eligibility established by national medical 
 specialty boards where appropriate.  The incumbents assigned to 
 these special ranges shall be excluded from the collective 
 bargaining process. 

    (b) The commissioner may without regard to subdivision 1, 
 but subject to collective bargaining agreements or compensation 
 plans, establish special salary rates designed to attract and 
 retain exceptionally qualified employees in the following 
 positions: 

    (1) information systems staff; 

    (2) actuaries in the departments of health, human services, 
 and commerce; and 

    (3) epidemiologists in the department of health. 

    Subd. 5.    Salary on demotion; special cases.  The 
 commissioner may, upon request of an appointing authority, 
 approve payment of an employee with permanent status at a salary 
 rate above the maximum of the class to which the employee is 
 demoted.  The commissioner shall take such action as required by 
 collective bargaining agreements or plans pursuant to section 
 43A.18.  If the action is justified by the employee's long or 
 outstanding service, exceptional or technical qualifications, 
 age, health, or substantial changes in work assignment beyond 
 the control of the employee, the commissioner may approve a rate 
 up to and including the employee's salary immediately prior to 
 demotion.  Thereafter, so long as the employee remains in the 
 same position, the employee shall not be eligible to receive any 
 increase in salary until the employee's salary is within the 
 range of the class to which the employee's position is allocated 
 unless such increases are specifically provided in collective 
 bargaining agreements or plans pursuant to section 43A.18.  

    Subd. 6.    Salary on transfer.  The commissioner may 
 authorize an employee transferring between two classes 
 established as equivalent for purposes of transfer to retain a 
 rate of compensation above the maximum of the range of the class 
 to which the employee is transferring.  The commissioner shall 
 take such action as required by a collective bargaining 
 agreement or plans pursuant to section 43A.18.  Thereafter, so 
 long as the employee remains in the same class, the employee 
 shall receive an increase in salary only as provided pursuant to 
 applicable collective bargaining agreements or plans pursuant to 
 section 43A.18, until the employee's salary is within the range 
 of the class to which the position is allocated.  

    Subd. 7.    Injured on duty pay.  Notwithstanding 
 section 176.021, subdivision 5, the commissioner may provide for 
 injured on duty pay through collective bargaining agreements or 
 plans pursuant to section 43A.18.  

    Subd. 8.    Accumulated vacation leave.  The 
 commissioner of employee relations shall not agree to a 
 collective bargaining agreement or recommend a compensation plan 
 pursuant to section 43A.18, subdivisions 1, 2, 3, and 4, nor 
 shall an arbitrator issue an award under sections 179A.01 to 
 179A.25, if the compensation plan, agreement, or award permits 
 an employee to convert accumulated vacation leave into cash 
 before separation from state service.  

    This section does not prohibit the commissioner from 
 negotiating a collective bargaining agreement or recommending 
 approval of a compensation plan which:  (1) permits an employee 
 to receive payment for accumulated vacation leave upon beginning 
 an unpaid leave of absence approved for more than one year in 
 duration if the leave of absence is not for the purpose of 
 accepting an unclassified position in state civil service; (2) 
 permits an employee to receive payment for accumulated vacation 
 leave upon layoff; or (3) permits an employee to receive payment 
 for accumulated vacation leave if a change in employment results 
 in the employee being ineligible to accrue further vacation 
 leave. 

    Subd. 9.    Political subdivision compensation limit.  
 The salary and the value of all other forms of compensation of a 
 person employed by a statutory or home rule charter city, 
 county, town, metropolitan or regional agency, or other 
 political subdivision of this state excluding a school district, 
 or employed under section 422A.03, may not exceed 95 percent of 
 the salary of the governor as set under section 15A.082, except 
 as provided in this subdivision.  Deferred compensation and 
 payroll allocations to purchase an individual annuity contract 
 for an employee are included in determining the employee's 
 salary.  Other forms of compensation which shall be included to 
 determine an employee's total compensation are all other direct 
 and indirect items of compensation which are not specifically 
 excluded by this subdivision.  Other forms of compensation which 
 shall not be included in a determination of an employee's total 
 compensation for the purposes of this subdivision are: 

    (1) employee benefits that are also provided for the 
 majority of all other full-time employees of the political 
 subdivision, vacation and sick leave allowances, health and 
 dental insurance, disability insurance, term life insurance, and 
 pension benefits or like benefits the cost of which is borne by 
 the employee or which is not subject to tax as income under the 
 Internal Revenue Code of 1986; 

    (2) dues paid to organizations that are of a civic, 
 professional, educational, or governmental nature; and 

    (3) reimbursement for actual expenses incurred by the 
 employee which the governing body determines to be directly 
 related to the performance of job responsibilities, including 
 any relocation expenses paid during the initial year of 
 employment. 

    The value of other forms of compensation shall be the 
 annual cost to the political subdivision for the provision of 
 the compensation.  The salary of a medical doctor or doctor of 
 osteopathy occupying a position that the governing body of the 
 political subdivision has determined requires an M.D. or D.O. 
 degree is excluded from the limitation in this subdivision.  The 
 commissioner may increase the limitation in this subdivision for 
 a position that the commissioner has determined requires special 
 expertise necessitating a higher salary to attract or retain a 
 qualified person.  The commissioner shall review each proposed 
 increase giving due consideration to salary rates paid to other 
 persons with similar responsibilities in the state and nation.  
 The commissioner may not increase the limitation until the 
 commissioner has presented the proposed increase to the 
 legislative coordinating commission and received the 
 commission's recommendation on it.  The recommendation is 
 advisory only.  If the commission does not give its 
 recommendation on a proposed increase within 30 days from its 
 receipt of the proposal, the commission is deemed to have 
 recommended approval. 

    Subd. 10.    Local elected officials; certain compensation 
 prohibited.  The compensation plan for an elected official of 
 a statutory or home rule charter city, county, or town may not 
 include a provision for vacation or sick leave.  The salary of 
 an official covered by this subdivision may not be diminished 
 because of the official's absence from official duties because 
 of vacation or sickness. 

    Subd. 11.    Severance pay for certain employees.  (a) 
 For purposes of this subdivision, "highly compensated employee" 
 means an employee of the state whose estimated annual 
 compensation is greater than 60 percent of the governor's annual 
 salary, and who is not covered by a collective bargaining 
 agreement negotiated under chapter 179A. 

    (b) Severance pay for a highly compensated employee 
 includes benefits or compensation with a quantifiable monetary 
 value, that are provided for an employee upon termination of 
 employment and are not part of the employee's annual wages and 
 benefits and are not specifically excluded by this subdivision.  
 Severance pay does not include payments for accumulated 
 vacation, accumulated sick leave, and accumulated sick leave 
 liquidated to cover the cost of group term insurance.  Severance 
 pay for a highly compensated employee does not include payments 
 of periodic contributions by an employer toward premiums for 
 group insurance policies.  The severance pay for a highly 
 compensated employee must be excluded from retirement deductions 
 and from any calculations of retirement benefits.  Severance pay 
 for a highly compensated employee must be paid in a manner 
 mutually agreeable to the employee and the employee's appointing 
 authority over a period not to exceed five years from retirement 
 or termination of employment.  If a retired or terminated 
 employee dies before all or a portion of the severance pay has 
 been disbursed, the balance due must be paid to a named 
 beneficiary or, lacking one, to the deceased's estate.  Except 
 as provided in paragraph (c), severance pay provided for a 
 highly compensated employee leaving employment may not exceed an 
 amount equivalent to six months of pay. 

    (c) Severance pay for a highly compensated employee may 
 exceed an amount equivalent to six months of pay if the 
 severance pay is part of an early retirement incentive offer 
 approved by the state and the same early retirement incentive 
 offer is also made available to all other employees of the 
 appointing authority who meet generally defined criteria 
 relative to age or length of service. 

    Subd. 12. Repealed, 1999 c 221 s 9 

    HIST: 1981 c 210 s 17; 1982 c 560 s 26; 1983 c 299 s 12-14; 
 1984 c 462 s 27; 1Sp1985 c 17 s 7; 1986 c 444; 1988 c 667 s 7,8; 
 1990 c 571 s 20,21; 1992 c 505 s 1; 1992 c 549 art 5 s 2; 1993 c 
 315 s 5,6; 1993 c 345 art 5 s 2; 1995 c 248 art 2 s 7; 1996 c 
 425 s 4; 1997 c 202 art 2 s 33; 2Sp1997 c 3 s 9,10; 1998 c 351 s 
 2; 1998 c 366 s 49; 1998 c 398 art 5 s 1,2; 1999 c 182 s 11; 
 1999 c 221 s 3 

     43A.18 Total compensation; collective bargaining 
  agreements; plans. 

    Subdivision 1.    Collective bargaining agreements.  
 Except as provided in section 43A.01 and to the extent they are 
 covered by a collective bargaining agreement, the compensation, 
 terms and conditions of employment for all employees represented 
 by an exclusive representative certified pursuant to chapter 
 179A shall be governed solely by the collective bargaining 
 agreement executed by the parties and approved by the 
 legislature.  

    Subd. 2.    Commissioner's plan.  Except as provided in 
 section 43A.01, the compensation, terms and conditions of 
 employment for all classified and unclassified employees, except 
 unclassified employees in the legislative and judicial branches, 
 who are not covered by a collective bargaining agreement and not 
 otherwise provided for in chapter 43A or other law are governed 
 solely by a plan developed by the commissioner.  The legislative 
 coordinating commission shall review and approve, reject, or 
 modify the plan under section 3.855, subdivision 2.  The plan 
 need not be adopted in accordance with the rulemaking provisions 
 of chapter 14.  

    Subd. 3.    Managerial plan.  (a) The commissioner shall 
 identify individual positions or groups of positions in the 
 classified and unclassified service in the executive branch as 
 being managerial.  The list must not include positions listed in 
 subdivision 4.  

    (b) The commissioner shall periodically prepare a plan for 
 total compensation and terms and conditions of employment for 
 employees of those positions identified as being managerial and 
 whose salaries and benefits are not otherwise provided for in 
 law or other plans established under this chapter.  Before 
 becoming effective those portions of the plan establishing 
 compensation and terms and conditions of employment must be 
 reviewed and approved or modified by the legislative 
 coordinating commission and the legislature under section 3.855, 
 subdivisions 2 and 3.  

    (c) Incumbents of managerial positions as identified under 
 this subdivision must be excluded from any bargaining units 
 under chapter 179A. 

    (d) The management compensation plan must provide methods 
 and levels of compensation for managers that will be generally 
 comparable to those applicable to managers in other public and 
 private employment.  The plan must ensure that compensation 
 within assigned salary ranges is related to level of 
 performance.  The plan must also provide a procedure for 
 establishment of a salary rate for a newly created position and 
 a new appointee to an existing position and for progression 
 through assigned salary ranges.  The employee benefits 
 established under the provisions of the managerial plan may be 
 extended to agency heads whose salaries are established in 
 section 15A.0815 and to constitutional officers, judges of the 
 workers' compensation court of appeals, and tax court judges.  

    Subd. 3a.    Board of trustees of the Minnesota state 
 colleges and universities plan.  Total compensation for 
 unclassified managerial positions under section 43A.08, 
 subdivision 1, clause (9), in the board of trustees of the 
 Minnesota state colleges and universities not covered by a 
 collective bargaining agreement must be determined by the board 
 of trustees of the Minnesota state colleges and universities.  
 Before submitting a compensation plan to the legislature and the 
 legislative commission on employee relations, the board of 
 trustees of the Minnesota state colleges and universities must 
 submit the plan to the commissioner of employee relations for 
 review and comment.  The commissioner must complete the review 
 within 14 days of its receipt.  Compensation plans established 
 under this subdivision must be approved by the legislature and 
 the legislative commission on employee relations under section 
 3.855, before becoming effective. 

    Subd. 4.    Plans not established but approved by 
 commissioner.  (a) Notwithstanding any other law to the 
 contrary, terms and conditions of employment for employees 
 listed in this subdivision must be set by appointing authorities 
 within the limits of compensation plans that have been approved 
 by the commissioner before becoming effective.  Compensation 
 plans established under paragraph (c) must be reviewed and 
 approved, modified, or rejected by the legislature and the 
 legislative coordinating commission under section 3.855, 
 subdivisions 2 and 3, before becoming effective. 

    (b) Total compensation for employees who are not covered by 
 a collective bargaining agreement in the offices of the 
 governor, lieutenant governor, attorney general, secretary of 
 state, state auditor, and state treasurer must be determined by 
 the governor, lieutenant governor, attorney general, secretary 
 of state, state auditor, and state treasurer, respectively.  

    (c) Total compensation for unclassified positions not 
 covered by a collective bargaining agreement in the higher 
 education services office must be determined by the higher 
 education services office. 

    Subd. 4a.    Compensation reports.  On July 1 of each 
 odd-numbered year the state agricultural society, the Minnesota 
 Technology, Inc. board of directors, and the governing board of 
 the Minnesota state high school league shall each submit a 
 report to the legislative commission on employee relations on 
 the total compensation plan for their employees. 

    Subd. 5.    Appointing authorities to recommend certain 
 salaries.  (a) The governor, or other appropriate appointing 
 authority, may submit to the legislative coordinating commission 
 recommendations for salaries within the salary limits for the 
 positions listed in section 15A.0815, subdivisions 2 to 4.  An 
 appointing authority may also propose additions or deletions of 
 positions from those listed.  

    (b) Before submitting the recommendations, the appointing 
 authority shall consult with the commissioner of administration, 
 the commissioner of finance, and the commissioner of employee 
 relations concerning the recommendations.  

    (c) In making recommendations, the appointing authority 
 shall consider the criteria established in subdivision 8 and the 
 performance of individual incumbents.  The performance 
 evaluation must include a review of an incumbent's progress 
 toward attainment of affirmative action goals.  The appointing 
 authority shall establish an objective system for quantifying 
 knowledge, abilities, duties, responsibilities, and 
 accountabilities and in determining recommendations rate each 
 position by this system.  

    (d) Before the appointing authority's recommended salaries 
 take effect, the recommendations must be reviewed and approved, 
 rejected, or modified by the legislative coordinating commission 
 and the legislature under section 3.855, subdivisions 2 and 3.  
 If, when the legislature is not in session, the commission fails 
 to reject or modify salary recommendations of the governor 
 within 30 calendar days of their receipt, the recommendations 
 are deemed to be approved.  

    (e) The appointing authority shall set the initial salary 
 of a head of a new agency or a chair of a new metropolitan board 
 or commission whose salary is not specifically prescribed by law 
 after consultation with the commissioner, whose recommendation 
 is advisory only.  The amount of the new salary must be 
 comparable to the salary of an agency head or commission chair 
 having similar duties and responsibilities. 

    (f) The salary of a newly appointed head of an agency or 
 chair of a metropolitan agency listed in section 15A.0815, 
 subdivisions 2 to 4, may be increased or decreased by the 
 appointing authority from the salary previously set for that 
 position within 30 days of the new appointment after 
 consultation with the commissioner.  If the appointing authority 
 increases a salary under this paragraph, the appointing 
 authority shall submit the new salary to the legislative 
 coordinating commission and the full legislature for approval, 
 modification, or rejection under section 3.855, subdivisions 2 
 and 3.  If, when the legislature is not in session, the 
 commission fails to reject or modify salary recommendations of 
 the governor within 30 calendar days of their receipt, the 
 recommendations are deemed to be approved. 

    Subd. 6.    Legislative and judicial branch compensation. 
  Total compensation plans for unclassified employees of the 
 legislature and of legislative commissions shall be determined 
 by the legislature consistent with chapter 3, provided that 
 insurance benefits for these employees and for legislators shall 
 be determined by the legislative coordinating commission, 
 consistent with sections 43A.22 to 43A.30.  Total compensation 
 plans for unclassified employees of the judicial branch shall be 
 determined by the appointing authority, unless other law 
 provides a different method for establishing this compensation.  
 Judicial branch compensation plans shall be consistent with 
 sections 43A.22 to 43A.30.  

    Subd. 7.    Members of Minnesota national guard.  
 Members of the Minnesota national guard shall receive the pay 
 and allowances prescribed by the armed forces of the United 
 States for similar rank and time in service.  

    Subd. 8.    Compensation relationships of positions.  In 
 preparing management negotiating positions for compensation 
 which is established pursuant to subdivision 1, and in 
 establishing, recommending and approving total compensation for 
 any position within the plans covered in subdivisions 2, 3 and 
 4, the commissioner shall assure that: 

    (a) Compensation for positions in the classified and the 
 unclassified service compare reasonably to one another; 

    (b) Compensation for state positions bears reasonable 
 relationship to compensation for similar positions outside state 
 service; 

    (c) Compensation for management positions bears reasonable 
 relationship to compensation of represented employees managed; 

    (d) Compensation for positions within the classified 
 service bears reasonable relationships among related job classes 
 and among various levels within the same occupation; and 

    (e) Compensations bear reasonable relationships to one 
 another within the meaning of this subdivision if compensation 
 for positions which require comparable skill, effort, 
 responsibility, and working conditions is comparable and if 
 compensation for positions which require differing skill, 
 effort, responsibility, and working conditions is proportional 
 to the skill, effort, responsibility, and working conditions 
 required. 

    HIST: 1981 c 210 s 18; 1982 c 424 s 130; 1982 c 560 s 27,28; 
 1982 c 634 s 7; 1983 c 216 art 1 s 12; 1983 c 258 s 12; 1983 c 
 299 s 15-17; 1984 c 462 s 27; 1984 c 640 s 32; 1Sp1985 c 10 s 
 48; 1Sp1985 c 13 s 170; 1986 c 444; 1987 c 186 s 6; 1988 c 667 s 
 9; 1990 c 375 s 3; 1990 c 571 s 22-24; 1991 c 238 art 1 s 5; 
 1993 c 122 s 2; 1994 c 532 art 4 s 3,4; 1994 c 560 art 2 s 
 13-16; 1995 c 212 art 3 s 59; art 4 s 64; 1995 c 248 art 2 s 7; 
 1996 c 425 s 5; 2Sp1997 c 3 s 11,12,18; 1999 c 86 art 1 s 79; 
 1999 c 182 s 12; 2000 c 260 s 10 

     43A.181 Unreimbursed medical costs vacation donation 
  program. 

    Subdivision 1.    Donation of vacation time.  A state 
 employee may donate up to 12 hours of accrued vacation time in 
 any fiscal year to the account established by subdivision 2 for 
 the benefit of another state employee.  The employee must notify 
 the employee's agency head of the amount of accrued vacation 
 time the employee wishes to donate and the name of the other 
 state employee who is to benefit from the donation.  The agency 
 head shall determine the monetary value of the donated time, 
 using the gross salary of the employee making the donation.  The 
 agency head shall transfer that amount, less deductions for 
 applicable taxes and retirement contributions, to the account 
 established by subdivision 2.  A donation of accrued vacation 
 time is irrevocable once its monetary value has been transferred 
 to the account. 

    Subd. 2.    Benefit account.  The vacation benefit 
 account, consisting of money transferred under subdivision 1, is 
 administered by the commissioner of employee relations.  Money 
 in the account is appropriated to the commissioner for purposes 
 of this section. 

    Subd. 3.    Use of account assets.  Expenditures from 
 the account established by subdivision 2 may be made to pay 
 unreimbursed medical expenses when the total of those expenses 
 is at least $10,000 and the expenses are incurred because of the 
 illness of or injury to a state employee or the employee's 
 spouse or dependent.  Up to 40 percent of the funds donated to 
 an individual employee's account may be used to pay for housing 
 and transportation accessibility costs required by the employee 
 who suffered an injury.  Any money remaining after all of the 
 expenses incurred by the employee named to benefit from a 
 donation have been paid may be transferred to a general pool.  
 The commissioner may use the pool to pay unreimbursed medical 
 expenses for another state employee named to benefit from 
 donated vacation time but whose unreimbursed expenses exceed the 
 monetary value of the donated time. 

    HIST: 1990 c 571 s 25; 1991 c 9 s 1; 1994 c 516 s 1 

     43A.1815 Vacation donation to sick leave account. 

    In addition to donations under section 43A.181, a state 
 employee may donate a total of up to 12 hours of accrued 
 vacation leave each fiscal year to the sick leave account of one 
 or more state employees.  A state employee may not be paid for 
 more than 80 hours in a payroll period during which the employee 
 uses sick leave credited to the employee's account as a result 
 of a transfer from another state employee's vacation account.  
 The commissioner shall establish procedures under section 
 43A.04, subdivision 4, for eligibility, duration of need based 
 on individual cases, monitoring and evaluation of individual 
 eligibility status, and other topics related to administration 
 of this program. 

    HIST: 1996 c 425 s 6 

  43A.182 Repealed, 1997 c 97 s 20 

     43A.185 Disaster volunteer leave. 

    Subdivision 1.    Leave authorized.  A state employee 
 who is a certified disaster service volunteer of the American 
 Red Cross may be granted leave from work with 100 percent of 
 pay, not to exceed 15 working days in each year, to participate 
 in specialized disaster relief services for the American Red 
 Cross.  The employee must be released from work for this 
 function upon the request of the American Red Cross for the 
 services of that employee, and upon the approval of that 
 employee's appointing authority.  The appointing authority shall 
 compensate the employee granted leave under this section at 100 
 percent of the employee's regular rate of pay for those regular 
 hours during which the employee is absent from work.  This 
 leave, if granted by the appointing authority, may not affect 
 the employee's vacation leave, pension, compensatory time, 
 personal vacation days, sick leave, earned overtime 
 accumulation, or cause a loss of seniority. 

    Subd. 2.    Liability.  The state is not liable for 
 workers' compensation claims arising from accident or injury 
 while a state employee is on assignment as a certified disaster 
 service volunteer for the American Red Cross.  Duties performed 
 while on disaster leave are not considered to be a work 
 assignment by a state agency.  The employee is granted leave 
 based on the need for expertise in the employee's certified 
 area.  Job functions, although similar or related to the 
 employee's state job functions, are performed on behalf of and 
 for the benefit of the American Red Cross. 

    HIST: 1994 c 583 s 1; 1998 c 356 s 1 

     43A.19 Affirmative action. 

    Subdivision 1.    Statewide affirmative action program.  
 (a) To assure that positions in the executive branch of the 
 civil service are equally accessible to all qualified persons, 
 and to eliminate the underutilization of qualified members of 
 protected groups, the commissioner shall adopt and periodically 
 revise, if necessary, a statewide affirmative action program.  
 The statewide affirmative action program must consist of at 
 least the following: 

    (1) objectives, goals, and policies; 

    (2) procedures, standards, and assumptions to be used by 
 agencies in the preparation of agency affirmative action plans, 
 including methods by which goals and timetables are established; 

    (3) the analysis of separation patterns to determine the 
 impact on protected group members; and 

    (4) requirements for annual objectives and submission of 
 affirmative action progress reports from heads of agencies. 

    (b) The commissioner shall base affirmative action goals on 
 at least the following factors: 

    (1) the percentage of members of each protected class in 
 the recruiting area population who have the necessary skills; 

    (2) the availability for promotion or transfer of members 
 of protected classes in the recruiting area population; 

    (3) the extent of unemployment of members of protected 
 classes in the recruiting area population; 

    (4) the existence of training programs in needed skill 
 areas offered by employing agencies and other institutions; and 

    (5) the expected number of available positions to be filled.

    (c) The commissioner shall designate a state director of 
 diversity and equal employment opportunity who may be delegated 
 the preparation, revision, implementation, and administration of 
 the program.  The commissioner of employee relations may place 
 the director's position in the unclassified service if the 
 position meets the criteria established in section 43A.08, 
 subdivision 1a. 

    Subd. 2. Repealed, 1Sp1985 c 13 s 376 

    Subd. 3.    Exemptions.  Implementation of the 
 provisions of this section shall not be deemed a violation of 
 other provisions of this chapter or chapter 363.  

    HIST: 1981 c 210 s 19; 1982 c 560 s 29; 1Sp1985 c 13 s 171; 
 1988 c 667 s 10; 1995 c 248 art 10 s 7; 1999 c 182 s 13 

     43A.191 Agency affirmative action programs. 

    Subdivision 1.    Affirmative action officers.  (a) Each 
 agency with 1,000 employees or more shall have at least one 
 full-time affirmative action officer, who shall have primary 
 responsibility for developing and maintaining the agency's 
 affirmative action plan.  The officer shall devote full time to 
 affirmative action activities.  The affirmative action officer 
 shall report administratively and on policy issues directly to 
 the agency head. 

    (b) The agency heads shall assign affirmative action 
 officers or designees for agencies with fewer than 1,000 
 employees.  The designees shall report administratively and on 
 policy issues directly to the agency head. 

    (c) An agency may not use authority under section 43A.08, 
 subdivision 1a, to place the position of an agency affirmative 
 action officer or designee in the unclassified service. 

    Subd. 2.    Agency affirmative action plans.  (a) The 
 head of each agency in the executive branch shall prepare and 
 implement an agency affirmative action plan consistent with this 
 section and rules issued under section 43A.04, subdivision 3. 

    (b) The agency plan must include a plan for the provision 
 of reasonable accommodation in the hiring and promotion of 
 qualified disabled persons.  The reasonable accommodation plan 
 must consist of at least the following: 

    (1) procedures for compliance with section 363.03 and, 
 where appropriate, regulations implementing United States Code, 
 title 29, section 794, as amended through December 31, 1984, 
 which is section 504 of the Rehabilitation Act of 1973, as 
 amended and the Americans with Disabilities Act, United States 
 Code, title 42, sections 101 to 108, 201 to 231, 241 to 246, 
 401, 402, and 501 to 514; 

    (2) methods and procedures for providing reasonable 
 accommodation for disabled job applicants, current employees, 
 and employees seeking promotion; and 

    (3) provisions for funding reasonable accommodations. 

    (c) The agency plan must be prepared by the agency head 
 with the assistance of the agency affirmative action officer and 
 the director of diversity and equal employment opportunity.  The 
 council on disability shall provide assistance with the agency 
 reasonable accommodation plan. 

    (d) The agency plan must identify any positions in the 
 agency that can be used for supported employment as defined in 
 section 268A.01, subdivision 13, of persons with severe 
 disabilities.  The agency shall report this information to the 
 commissioner.  An agency that hires more than one supported 
 worker in the identified positions must receive recognition for 
 each supported worker toward meeting the agency's affirmative 
 action goals and objectives. 

    (e) An agency affirmative action plan may not be 
 implemented without the commissioner's approval. 

    Subd. 3.    Audits; sanctions and incentives.  (a) The 
 commissioner shall annually audit the record of each agency to 
 determine the rate of compliance with affirmative action 
 requirements. 

    (b) By March 1 of each odd-numbered year, the commissioner 
 shall submit a report on affirmative action progress of each 
 agency and the state as a whole to the governor and to the 
 finance committee of the senate, the ways and means committee of 
 the house of representatives, the governmental operations 
 committees of both houses of the legislature, and the 
 legislative commission on employee relations.  The report must 
 include noncompetitive appointments made under section 43A.08, 
 subdivision 2a, or 43A.15, subdivisions 3 to 13, and cover each 
 agency's rate of compliance with affirmative action requirements.

    (c) An agency that does not meet its hiring goals must 
 justify its nonaffirmative action hires in competitive and 
 noncompetitive appointments according to criteria issued by the 
 department of employee relations.  "Missed opportunity" includes 
 failure to justify a nonaffirmative action hire.  An agency must 
 have 25 percent or less missed opportunities in competitive 
 appointments and 25 percent or less missed opportunities in 
 appointments made under sections 43A.08, subdivisions 1, clauses 
 (9), (11), and (16); and 2a; and 43A.15, subdivisions 3, 10, 12, 
 and 13.  In addition, an agency shall: 

    (1) demonstrate a good faith effort to recruit protected 
 group members by following an active recruitment plan; 

    (2) implement a coordinated retention plan; and 

    (3) have an established complaint resolution procedure. 

    (d) The commissioner shall develop reporting standards and 
 procedures for measuring compliance. 

    (e) An agency is encouraged to develop other innovative 
 ways to promote awareness, acceptance, and appreciation for 
 diversity and affirmative action.  These innovations will be 
 considered when evaluating an agency's compliance with this 
 section. 

    (f) An agency not in compliance with affirmative action 
 requirements of this section must identify methods and programs 
 to improve performance, to reallocate resources internally in 
 order to increase support for affirmative action programs, and 
 to submit program and resource reallocation proposals to the 
 commissioner for approval.  An agency must submit these 
 proposals within 120 days of being notified by the commissioner 
 that it is out of compliance with affirmative action 
 requirements.  The commissioner shall monitor quarterly the 
 affirmative action programs of an agency found to be out of 
 compliance. 

    (g) The commissioner shall establish a program to recognize 
 an agency that has made significant and measurable progress in 
 implementing an affirmative action plan. 

    HIST: 1Sp1985 c 13 s 172; 1987 c 186 s 7; 1987 c 354 s 8; 1988 
 c 667 s 11; 1990 c 571 s 26,27; 1992 c 513 art 9 s 2; 1995 c 248 
 art 10 s 8-10; 1996 c 305 art 1 s 11 

  43A.192 Repealed, 1990 c 426 art 1 s 12 

     43A.20 Performance appraisal and pay. 

    The commissioner shall design and maintain a performance 
 appraisal system under which each employee in the civil service 
 in the executive branch shall be evaluated and counseled on work 
 performance at least once a year.  Individual pay increases for 
 all employees not represented by an exclusive representative 
 certified pursuant to chapter 179A shall be based on the 
 evaluation and other factors the commissioner includes in the 
 plans developed pursuant to section 43A.18.  Collective 
 bargaining agreements entered into pursuant to chapter 179A may, 
 and are encouraged to, provide for pay increases based on 
 employee work performance.  

    HIST: 1981 c 210 s 20; 1999 c 182 s 14 

     43A.21 Training programs. 

    Subdivision 1.    Authority; purpose.  The commissioner 
 shall develop and interpret policy and administer and, to the 
 extent possible, conduct programs in training and development 
 for employees to promote individual, group and agency efficiency 
 and effectiveness.  

    Subd. 2.    Responsibilities.  The commissioner is 
 responsible for developing and coordinating consistent training 
 policy which shall be binding on all state agencies in the 
 executive branch.  The policies shall include conditions under 
 which employees may receive or be assigned to training; 
 internships and work-training programs; minimum and maximum 
 training standards for employee participation and agency 
 reporting requirements.  Career development training is a 
 permissive subject of collective bargaining.  Each appointing 
 authority in the executive branch, including the Minnesota state 
 retirement system and the teachers retirement association, is 
 primarily responsible for planning, budgeting, conducting and 
 evaluating training programs.  

    Subd. 3.    Programs.  The commissioner or the 
 commissioner's designee shall design and implement management 
 training and development programs for the state service.  The 
 programs shall include but not be limited to mandatory training 
 and development requirements for managers and supervisors.  No 
 person shall acquire permanent status in a management or 
 supervisory position in the classified service until training 
 and development requirements have been met.  

    Subd. 4.    Funds.  For purposes of training and 
 development, the commissioner is authorized to apply for and 
 accept funds from any source including reimbursement charges 
 from agencies for reasonable program costs.  Funds received 
 shall be deposited in the special revenue fund of the state 
 treasury and shall be appropriated annually to the department 
 for the purposes for which they are received.  

    Subd. 5. Repealed, 1994 c 429 s 5 

    HIST: 1981 c 210 s 21; 1983 c 299 s 18; 1Sp1985 c 17 s 8; 1989 
 c 335 art 4 s 106; 1994 c 429 s 3 

  43A.211 Repealed, 1995 c 254 art 1 s 97 

     43A.22 Benefits; intent. 

    (a) It is the intent of the state to provide eligible 
 employees and other eligible persons with life insurance and 
 hospital, medical, and dental benefits coverage through provider 
 organizations, hereafter referred to as "carriers," authorized 
 to do business in the state.  

    (b) The commissioner may self-insure any hospital and 
 medical plan offered under sections 43A.22 to 43A.31 to promote 
 reasonably stable and predictable premiums for hospital and 
 medical benefits paid by the state and its employees and to 
 promote affordable, ongoing relationships between employees and 
 dependents and their medical providers.  The commissioner shall 
 consult with the commissioners of commerce and health and human 
 services regarding the development and reporting of quality of 
 care measures. 

    HIST: 1981 c 210 s 22; 1999 c 250 art 1 s 72 

     43A.23 Contracting authority. 

    Subdivision 1.    General.  The commissioner is 
 authorized to request bids from carriers or to negotiate with 
 carriers and to enter into contracts with carriers which in the 
 judgment of the commissioner are best qualified to underwrite 
 and service the benefit plans.  Contracts entered into with 
 carriers are not subject to the requirements of sections 16C.16 
 to 16C.19.  The commissioner may negotiate premium rates and 
 coverage provisions with all carriers licensed under chapters 
 62A, 62C, and 62D.  The commissioner may also negotiate 
 reasonable restrictions to be applied to all carriers under 
 chapters 62A, 62C, and 62D.  Contracts to underwrite the benefit 
 plans must be bid or negotiated separately from contracts to 
 service the benefit plans, which may be awarded only on the 
 basis of competitive bids.  The commissioner shall consider the 
 cost of the plans, conversion options relating to the contracts, 
 service capabilities, character, financial position, and 
 reputation of the carriers, and any other factors which the 
 commissioner deems appropriate.  Each benefit contract must be 
 for a uniform term of at least one year, but may be made 
 automatically renewable from term to term in the absence of 
 notice of termination by either party.  The commissioner shall, 
 to the extent feasible, make hospital and medical benefits 
 available from at least one carrier licensed to do business 
 pursuant to each of chapters 62A, 62C, and 62D.  The 
 commissioner need not provide health maintenance organization 
 services to an employee who resides in an area which is not 
 served by a licensed health maintenance organization.  The 
 commissioner may refuse to allow a health maintenance 
 organization to continue as a carrier.  The commissioner may 
 elect not to offer all three types of carriers if there are no 
 bids or no acceptable bids by that type of carrier or if the 
 offering of additional carriers would result in substantial 
 additional administrative costs.  A carrier licensed under 
 chapter 62A is exempt from the taxes imposed by chapter 297I on 
 premiums paid to it by the state. 

    All self-insured hospital and medical service products must 
 comply with coverage mandates, data reporting, and consumer 
 protection requirements applicable to the licensed carrier 
 administering the product, had the product been insured, 
 including chapters 62J, 62M, and 62Q.  Any self-insured products 
 that limit coverage to a network of providers or provide 
 different levels of coverage between network and nonnetwork 
 providers shall comply with section 62D.123 and geographic 
 access standards for health maintenance organizations adopted by 
 the commissioner of health in rule under chapter 62D. 

    Subd. 2.    Contract to contain statement of benefits.  
 (a) Each contract under sections 43A.22 to 43A.30 shall contain 
 a detailed statement of benefits offered and shall include any 
 maximums, limitations, exclusions, and other definitions of 
 benefits the commissioner deems necessary or desirable.  Each 
 hospital and medical benefits contract shall provide benefits at 
 least equal to those required by section 62E.06, subdivision 2.  

    (b) All summaries of benefits describing the hospital and 
 medical service benefits offered to state employees must comply 
 with laws and rules for content and clarity applicable to the 
 licensed carrier administering the product.  Referral procedures 
 must be clearly described.  The commissioners of commerce and 
 health, as appropriate, shall review the summaries of benefits, 
 whether written or electronic, and advise the commissioner of 
 employee relations on any changes needed to ensure compliance. 

    Subd. 3.    Contract with insurance carriers.  The 
 commissioner of employee relations may contract with carriers 
 authorized to provide coverage under the state employees group 
 insurance plan to extend coverage to eligible employees who 
 incur medical expenses due to a personal injury which results 
 from their state employment which is compensable under chapter 
 176.  

    HIST: 1981 c 210 s 23; 1983 c 290 s 1; 1983 c 301 s 101; 1984 
 c 544 s 81; 1984 c 642 s 2; 1988 c 667 s 12,13; 1990 c 571 s 28; 
 1991 c 199 art 2 s 1; 1998 c 386 art 2 s 20; 1999 c 250 art 1 s 
 73,74; 2000 c 394 art 2 s 1 

     43A.24 Eligibility for state paid insurance and benefits.

    Subdivision 1.    General.  Employees, including persons 
 on layoff from a civil service position, and employees who are 
 employed less than full time, shall be eligible for state paid 
 life insurance and hospital, medical and dental benefits as 
 provided in collective bargaining agreements or plans 
 established pursuant to section 43A.18.  

    Subd. 2.    Other eligible persons.  The following 
 persons are eligible for state paid life insurance and hospital, 
 medical, and dental benefits as determined in applicable 
 collective bargaining agreements or by the commissioner or by 
 plans pursuant to section 43A.18, subdivision 6, or by the board 
 of regents for employees of the University of Minnesota not 
 covered by collective bargaining agreements.  Coverages made 
 available, including optional coverages, are as contained in the 
 plan established pursuant to section 43A.18, subdivision 2: 

    (a) a member of the state legislature, provided that 
 changes in benefits resulting in increased costs to the state 
 shall not be effective until expiration of the term of the 
 members of the existing house of representatives.  An eligible 
 member of the state legislature may decline to be enrolled for 
 state paid coverages by filing a written waiver with the 
 commissioner.  The waiver shall not prohibit the member from 
 enrolling the member or dependents for optional coverages, 
 without cost to the state, as provided for in section 43A.26.  A 
 member of the state legislature who returns from a leave of 
 absence to a position previously occupied in the civil service 
 shall be eligible to receive the life insurance and hospital, 
 medical, and dental benefits to which the position is entitled; 

    (b) an employee of the legislature or an employee of a 
 permanent study or interim committee or commission or a state 
 employee on leave of absence to work for the legislature, during 
 a regular or special legislative session, as determined by the 
 legislative coordinating commission; 

    (c) a judge of the appellate courts or an officer or 
 employee of these courts; a judge of the district court, a judge 
 of county court, or a judge of county municipal court; a 
 district court referee, judicial officer, court reporter, or law 
 clerk; a district administrator; an employee of the office of 
 the district administrator that is not in the second or fourth 
 judicial district; a court administrator or employee of the 
 court administrator in a judicial district under section 
 480.181, subdivision 1, paragraph (b), and a guardian ad litem 
 program employee; 

    (d) a salaried employee of the public employees retirement 
 association; 

    (e) a full-time military or civilian officer or employee in 
 the unclassified service of the department of military affairs 
 whose salary is paid from state funds; 

    (f) a salaried employee of the Minnesota historical 
 society, whether paid from state funds or otherwise, who is not 
 a member of the governing board; 

    (g) an employee of the regents of the University of 
 Minnesota; 

    (h) notwithstanding section 43A.27, subdivision 3, an 
 employee of the state of Minnesota or the regents of the 
 University of Minnesota who is at least 60 and not yet 65 years 
 of age on July 1, 1982, who is otherwise eligible for employee 
 and dependent insurance and benefits pursuant to section 43A.18 
 or other law, who has at least 20 years of service and retires, 
 earlier than required, within 60 days of March 23, 1982; or an 
 employee who is at least 60 and not yet 65 years of age on July 
 1, 1982, who has at least 20 years of state service and retires, 
 earlier than required, from employment at Rochester state 
 hospital after July 1, 1981; or an employee who is at least 55 
 and not yet 65 years of age on July 1, 1982, and is covered by 
 the Minnesota state retirement system correctional employee 
 retirement plan or the state patrol retirement fund, who has at 
 least 20 years of state service and retires, earlier than 
 required, within 60 days of March 23, 1982.  For purposes of 
 this clause, a person retires when the person terminates active 
 employment in state or University of Minnesota service and 
 applies for a retirement annuity.  Eligibility shall cease when 
 the retired employee attains the age of 65, or when the employee 
 chooses not to receive the annuity that the employee has applied 
 for.  The retired employee shall be eligible for coverages to 
 which the employee was entitled at the time of retirement, 
 subject to any changes in coverage through collective bargaining 
 or plans established pursuant to section 43A.18, for employees 
 in positions equivalent to that from which retired, provided 
 that the retired employee shall not be eligible for state-paid 
 life insurance.  Coverages shall be coordinated with relevant 
 health insurance benefits provided through the federally 
 sponsored Medicare program; 

    (i) an employee of an agency of the state of Minnesota 
 identified through the process provided in this paragraph who is 
 eligible to retire prior to age 65.  The commissioner and the 
 exclusive representative of state employees shall enter into 
 agreements under section 179A.22 to identify employees whose 
 positions are in programs that are being permanently eliminated 
 or reduced due to federal or state policies or practices.  
 Failure to reach agreement identifying these employees is not 
 subject to impasse procedures provided in chapter 179A.  The 
 commissioner must prepare a plan identifying eligible employees 
 not covered by a collective bargaining agreement in accordance 
 with the process outlined in section 43A.18, subdivisions 2 and 
 3.  For purposes of this paragraph, a person retires when the 
 person terminates active employment in state service and applies 
 for a retirement annuity.  Eligibility ends as provided in the 
 agreement or plan, but must cease at the end of the month in 
 which the retired employee chooses not to receive an annuity, or 
 the employee is eligible for employer-paid health insurance from 
 a new employer.  The retired employees shall be eligible for 
 coverages to which they were entitled at the time of retirement, 
 subject to any changes in coverage through collective bargaining 
 or plans established under section 43A.18 for employees in 
 positions equivalent to that from which they retired, provided 
 that the retired employees shall not be eligible for state-paid 
 life insurance; 

    (j) employees of the state board of public defense, with 
 eligibility determined by the state board of public defense in 
 consultation with the commissioner of employee relations; and 

    (k) employees of the health data institute under section 
 62J.451, subdivision 12, as paid for by the health data 
 institute. 

    Subd. 3. Repealed, 1993 c 122 s 7 

    HIST: 1981 c 37 s 2; 1981 c 210 s 24; 1982 c 522 s 1; 1983 c 
 247 s 20; 1986 c 444; 1987 c 186 s 8; 1988 c 605 s 1; 1989 c 81 
 s 2,3; 1989 c 335 art 3 s 3; 1990 c 594 art 2 s 2; 1993 c 146 
 art 2 s 10; 1995 c 189 s 8; 1995 c 248 art 10 s 11; 1996 c 277 s 
 1; 1996 c 305 art 1 s 12; 1999 c 216 art 7 s 2; 2000 c 457 s 5 

*   NOTE:  Laws 1999, chapter 216, article 7, section 46, 
*subdivisions 1 and 3, provide specific effective dates for the 
*state takeover of court administrative and miscellaneous costs 
*under subdivision 2, as amended by Laws 1999, chapter 216, 
*article 7, section 2.

  43A.25 Repealed, 1989 c 81 s 4 

     43A.26 Optional coverages. 

    The commissioner may make available to eligible persons and 
 their dependents certain optional coverages provided by carriers 
 selected by the commissioner.  Eligible employees may elect to 
 purchase optional coverages at their own expense.  

    HIST: 1981 c 210 s 26 

     43A.27 Eligibility for individual paid insurance and 
  benefits. 

    Subdivision 1.    General.  Notwithstanding any other 
 provisions of this chapter, the persons listed in subdivisions 2 
 and 3, and their dependents, may elect to enroll at their own 
 expense in the appropriate life insurance, hospital, medical and 
 dental benefits, and optional coverages at the time, in the 
 manner, and under conditions of eligibility the commissioner 
 prescribes and otherwise approves.  The commissioner may also 
 provide for payroll deductions to be made in the same manner and 
 under the same conditions as provided in section 43A.30, 
 subdivision 2 authorizing payroll deductions for an eligible 
 employee and the employee's dependents.  

    Subd. 2.    Elective eligibility.  The following 
 persons, if not otherwise covered by section 43A.24, may elect 
 coverage for themselves or their dependents at their own expense:

    (a) a state employee, including persons on layoff from a 
 civil service position as provided in collective bargaining 
 agreements or a plan established pursuant to section 43A.18; 

    (b) an employee of the board of regents of the University 
 of Minnesota, including persons on layoff, as provided in 
 collective bargaining agreements or by the board of regents; 

    (c) an officer or employee of the state agricultural 
 society, state horticultural society, Sibley house association, 
 Minnesota humanities commission, Minnesota area industry labor 
 management councils, Minnesota international center, Minnesota 
 academy of science, science museum of Minnesota, Minnesota 
 safety council, state office of disabled American veterans, 
 state office of the American Legion and its auxiliary, state 
 office of veterans of foreign wars and its auxiliary, or state 
 office of the Military Order of the Purple Heart; 

    (d) a civilian employee of the adjutant general who is paid 
 from federal funds and who is not eligible for benefits from any 
 federal civilian employee group life insurance or health 
 benefits program; and 

    (e) an officer or employee of the state capitol credit 
 union or the highway credit union. 

    Subd. 3.    Retired employees.  (a) A person may elect 
 to purchase at personal expense individual and dependent 
 hospital, medical, and dental coverages if the person is: 

    (1) a retired employee of the state or an organization 
 listed in subdivision 2 or section 43A.24, subdivision 2, who, 
 at separation of service: 

    (i) is immediately eligible to receive a retirement benefit 
 under chapter 354B or an annuity under a retirement program 
 sponsored by the state or such organization of the state; 

    (ii) immediately meets the age and service requirements in 
 section 352.115, subdivision 1; and 

    (iii) has five years of service or meets the service 
 requirement of the collective bargaining agreement or plan, 
 whichever is greater; or 

    (2) a retired employee of the state who is at least 50 
 years of age and has at least 15 years of state service.  

    (b) The commissioner shall offer at least one plan which is 
 actuarially equivalent to those made available through 
 collective bargaining agreements or plans established under 
 section 43A.18 to employees in positions equivalent to that from 
 which retired. 

    (c) A spouse of a person eligible under paragraph (a) may 
 purchase the coverage listed in this subdivision if the spouse 
 was a dependent under the retired employee's coverage at the 
 time of the retiree's death. 

    (d) Coverages must be coordinated with relevant health 
 insurance benefits provided through the federally sponsored 
 Medicare program.  Until the retired employee reaches age 65, 
 the retired employee and dependents must be pooled in the same 
 group as active employees for purposes of establishing premiums 
 and coverage for hospital, medical, and dental insurance.  
 Coverage for retired employees and their dependents may not 
 discriminate on the basis of evidence of insurability or 
 preexisting conditions unless identical conditions are imposed 
 on active employees in the group that the employee left.  
 Appointing authorities shall provide notice to employees no 
 later than the effective date of their retirement of the right 
 to exercise the option provided in this subdivision.  The 
 retired employee must notify the commissioner or designee of the 
 commissioner within 30 days after the effective date of the 
 retirement of intent to exercise this option. 

    Subd. 4.    Retired judges; former legislators.  (a) 
 Retired judges or former legislators may elect to purchase 
 coverage for themselves or their dependents at their own expense 
 as provided in paragraphs (b) and (c).  

    (b) A retired judge of the state supreme court, the court 
 of appeals, a district court, a county court, a county municipal 
 court, or a probate court may elect to purchase coverage 
 provided persons listed in section 43A.24, subdivision 2, clause 
 (c).  The commissioner shall notify judges no later than the 
 effective date of their retirement of their right to exercise 
 the option provided in this subdivision.  A retired judge must 
 notify the commissioner or designee of the commissioner within 
 30 days after the effective date of retirement if the judge 
 intends to exercise the option. 

    (c) A former member of the legislature may elect to 
 purchase coverage provided persons listed in section 43A.24, 
 subdivision 2, clause (a). 

    Subd. 5.    Employees of exclusive representatives.  
 Upon request of an exclusive representative of state employees 
 listed in section 179A.10, subdivision 2, those employees of 
 exclusive representatives whose duties involve representing 
 state employees for at least 75 percent of their time and their 
 dependents may elect to enroll at their own expense in the 
 appropriate life insurance, hospital, medical and dental 
 benefits, and optional coverages at the time, in the manner, and 
 under the conditions of eligibility the commissioner prescribes 
 and otherwise approves.  

    Subd. 6. Repealed, 1996 c 310 s 1 

    HIST: 1981 c 210 s 27; 1982 c 424 s 5; 1982 c 560 s 30; 1983 c 
 247 s 21; 1984 c 654 art 2 s 69; 1985 c 32 s 1; 1986 c 444; 1987 
 c 384 art 2 s 1; 1987 c 394 s 2; 1988 c 667 s 14,15; 1989 c 282 
 art 2 s 2; 1990 c 571 s 29; 1992 c 488 s 1; 1995 c 248 art 10 s 
 12; 1995 c 254 art 1 s 65,66; 1997 c 79 s 16; 1997 c 97 s 7,20; 
 1999 c 222 art 19 s 1 

     43A.28 Enrollment. 

    The time, manner, and conditions and terms of eligibility 
 for enrollment of persons eligible for state paid or individual 
 paid life insurance, hospital, medical and dental benefits, and 
 optional coverages authorized shall be determined and prescribed 
 by the commissioner according to collective bargaining 
 agreements and plans established pursuant to section 43A.18.  

    HIST: 1981 c 210 s 28 

     43A.29 Contributions by state. 

    The total contribution by the state for eligible state 
 employees and for dependents of eligible state employees shall 
 be prescribed by collective bargaining agreements or plans 
 established pursuant to section 43A.18.  

    HIST: 1981 c 210 s 29 

     43A.30 Payment of premiums. 

    Subdivision 1.    Payments from agency revenues.  Each 
 agency shall pay the amounts due for state paid life insurance 
 and hospital, medical and dental benefits coverage authorized 
 for eligible employees pursuant to this chapter.  

    Each agency shall pay the amounts from accounts and funds 
 from which the agency receives its revenues, including 
 appropriations from the general fund and from any other fund, 
 now or hereafter existing for the payment of salaries and in the 
 same proportion as it pays therefrom the amounts of salaries.  
 In order to enable the commissioner of finance to maintain 
 proper records covering the appropriations pursuant to this 
 section, the commissioner of finance may require certifications 
 in connection with payments as the commissioner of finance deems 
 necessary from the Minnesota historical society, the University 
 of Minnesota, or any agency whose employees receive benefits 
 pursuant to this chapter.  The accounts and funds from which 
 agencies receive appropriations under the terms of this section 
 are a source of revenue for the purposes of any other law or 
 statutory enactment.  

    Subd. 2.    Payroll deduction.  If an eligible person 
 who is on any payroll of the state or an eligible person's 
 dependents is enrolled for any of the optional coverages made 
 available by the commissioner pursuant to section 43A.26 the 
 commissioner of finance, upon the person's written order, shall 
 deduct from the salary or wages of the person those amounts 
 required from time to time to maintain the optional coverages in 
 force, and issue a warrant therefor to the appropriate carrier.  

    Subd. 3.  Repealed, 1Sp1981 c 4 art 4 s 10 

    Subd. 4.    Employee insurance trust fund.  The 
 commissioner of employee relations may direct that all or a part 
 of the amounts paid for life insurance, hospital, medical, and 
 dental benefits, and optional coverages authorized for eligible 
 employees and other eligible persons be deposited by the state 
 in an employee insurance trust fund in the state treasury, from 
 which the approved claims of eligibles are to be paid.  
 Investment income and investment losses attributable to the 
 investment of the fund shall be credited to the fund.  There is 
 appropriated from the fund to the commissioner amounts needed to 
 pay the approved claims of eligibles, related service charges, 
 insurance premiums, and refunds.  The commissioner shall not 
 market or self-insure life insurance.  The commissioner may 
 market and self-insure dental and optional coverages.  Nothing 
 in this subdivision precludes the commissioner from determining 
 plan design, providing informational materials, or communicating 
 with employees about coverages. 

    Subd. 5.    Administration.  The commissioner of 
 employee relations may administer the employee insurance 
 program.  The commissioner may assess agencies, and employers of 
 persons eligible for state-paid insurance and benefits under 
 section 43A.24, the cost of these administrative services, 
 including diagnostic and referral services provided by the 
 employee assistance program under section 43A.319, and include 
 it in the amounts billed for life insurance, hospital, medical, 
 and dental benefits, and optional coverages authorized.  
 Receipts from the assessments must be deposited in the state 
 treasury and credited to a special account in the employee 
 insurance trust fund and are appropriated to the commissioner to 
 pay these administrative costs. 

    Subd. 6.    Contingency reserve.  The commissioner shall 
 maintain a contingency reserve within the employee insurance 
 trust fund.  The reserve must be used to increase the controls 
 over medical plan provisions and insurance costs for the state's 
 employee populations.  The reserve consists of appropriations 
 from the general fund, receipts from billings to agencies, and 
 credited investment gains and losses attributable to balances in 
 the account.  The state board of investment shall invest the 
 assets of the account according to section 11A.24. 

    HIST: 1981 c 210 s 30; 1984 c 654 art 2 s 68; 1Sp1985 c 13 s 
 174,175; 1986 c 444; 1987 c 186 s 9; 1997 c 79 s 17; 1997 c 97 s 
 8,9; 1998 c 366 s 50; 1999 c 250 art 1 s 75,114 

     43A.31 Administration. 

    Subdivision 1.    General.  The commissioner shall 
 maintain records, prepare reports, and perform all functions 
 necessary to carry out the intent of sections 43A.22 to 43A.30.  
 Upon request of the commissioner, the commissioner of finance 
 shall perform necessary accounting and disbursement functions.  

    Subd. 2.    Commissioner reports.  The commissioner 
 shall transmit a report each biennium to the legislative 
 commission on employee relations concerning the operation of 
 sections 43A.22 to 43A.30, including a study of local and 
 statewide market trends regarding provider concentration, costs, 
 and other factors as they may relate to the state's health 
 benefits purchasing strategy.  The commissioner shall consult 
 with the commissioners of commerce and health in the conduct of 
 this study.  The commissioner shall also report the number, 
 type, and disposition of complaints relating to the insurance 
 programs offered by the commissioner.  

    Subd. 3.    Agency reports and records.  Each agency 
 shall keep the records, make the certifications, and furnish the 
 commissioner or carriers with the information and reports 
 necessary to enable the commissioner or carriers to carry out 
 their functions under sections 43A.22 to 43A.30.  

    Subd. 4. Repealed, 1993 c 337 s 20 

    Subd. 5.    Customer assistance.  The commissioner shall 
 employ staff for the purposes of assisting state employees and 
 their dependents in: 

    (1) understanding their benefits and coverage levels; 

    (2) obtaining information and responses to questions 
 regarding issues of coverage, benefits, and service from 
 carriers and providers; and 

    (3) making use of all grievance, appeals, and complaint 
 resolution processes provided by law or contract. 

    HIST: 1981 c 210 s 31; 1983 c 260 s 14; 1983 c 289 s 114 subd 
 1; 1984 c 655 art 1 s 92; 1986 c 444; 1999 c 250 art 1 s 76,77 

     43A.316 Public employees insurance program. 

    Subdivision 1.    Intent.  The legislature finds that 
 the creation of a statewide program to provide public employees 
 and other eligible persons with life insurance and hospital, 
 medical, and dental benefit coverage through provider 
 organizations would result in a greater utilization of 
 government resources and would advance the health and welfare of 
 the citizens of the state.  

    Subd. 2.    Definitions.  For the purpose of this 
 section, the terms defined in this subdivision have the meaning 
 given them.  

    (a)    Commissioner.  "Commissioner" means the 
 commissioner of employee relations.  

    (b)    Employee.  "Employee" means: 

    (1) a person who is a public employee within the definition 
 of section 179A.03, subdivision 14, who is insurance eligible 
 and is employed by an eligible employer; 

    (2) an elected public official of an eligible employer who 
 is insurance eligible; 

    (3) a person employed by a labor organization or employee 
 association certified as an exclusive representative of 
 employees of an eligible employer or by another public employer 
 approved by the commissioner, so long as the plan meets the 
 requirements of a governmental plan under United States Code, 
 title 29, section 1002(32); or 

    (4) a person employed by a county or municipal hospital.  

    (c)    Eligible employer.  "Eligible employer" means: 

    (1) a public employer within the definition of section 
 179A.03, subdivision 15, that is a town, county, city, school 
 district as defined in section 120A.05, service cooperative as 
 defined in section 123A.21, intermediate district as defined in 
 section 136D.01, cooperative center for vocational education as 
 defined in section 123A.22, regional management information 
 center as defined in section 123A.23, or an education unit 
 organized under the joint powers action, section 471.59; or 

    (2) an exclusive representative of employees, as defined in 
 paragraph (b); 

    (3) a county or municipal hospital; or 

    (4) another public employer approved by the commissioner. 

    (d)    Exclusive representative.  "Exclusive 
 representative" means an exclusive representative as defined in 
 section 179A.03, subdivision 8.  

    (e)    Labor-management committee.  "Labor-management 
 committee" means the committee established by subdivision 4.  

    (f)    Program.  "Program" means the statewide public 
 employees insurance program created by subdivision 3. 

    Subd. 3.    Public employee insurance program.  The 
 commissioner shall be the administrator of the public employee 
 insurance program and may determine its funding arrangements.  
 The commissioner shall model the program after the plan 
 established in section 43A.18, subdivision 2, but may modify 
 that plan, in consultation with the labor-management committee.  

    Subd. 4.    Labor-management committee.  The 
 labor-management committee consists of ten members appointed by 
 the commissioner.  The labor-management committee must comprise 
 five members who represent employees, including at least one 
 retired employee, and five members who represent eligible 
 employers.  Committee members are eligible for expense 
 reimbursement in the same manner and amount as authorized by the 
 commissioner's plan adopted under section 43A.18, subdivision 
 2.  The commissioner shall consult with the labor-management 
 committee in major decisions that affect the program.  The 
 committee shall study issues relating to the insurance program 
 including, but not limited to, flexible benefits, utilization 
 review, quality assessment, and cost efficiency.  

    Subd. 5.    Public employee participation.  (a)  
 Participation in the program is subject to the conditions in 
 this subdivision.  

    (b) Each exclusive representative for an eligible employer 
 determines whether the employees it represents will participate 
 in the program.  The exclusive representative shall give the 
 employer notice of intent to participate at least 30 days before 
 the expiration date of the collective bargaining agreement 
 preceding the collective bargaining agreement that covers the 
 date of entry into the program.  The exclusive representative 
 and the eligible employer shall give notice to the commissioner 
 of the determination to participate in the program at least 30 
 days before entry into the program.  Entry into the program is 
 governed by a schedule established by the commissioner. 

    (c) Employees not represented by exclusive representatives 
 may become members of the program upon a determination of an 
 eligible employer to include these employees in the program.  
 Either all or none of the employer's unrepresented employees 
 must participate.  The eligible employer shall give at least 30 
 days' notice to the commissioner before entering the program.  
 Entry into the program is governed by a schedule established by 
 the commissioner.  

    (d) Participation in the program is for a two-year term.  
 Participation is automatically renewed for an additional 
 two-year term unless the exclusive representative, or the 
 employer for unrepresented employees, gives the commissioner 
 notice of withdrawal at least 30 days before expiration of the 
 participation period.  A group that withdraws must wait two 
 years before rejoining.  An exclusive representative, or 
 employer for unrepresented employees, may also withdraw if 
 premiums increase 50 percent or more from one insurance year to 
 the next. 

    (e) The exclusive representative shall give the employer 
 notice of intent to withdraw to the commissioner at least 30 
 days before the expiration date of a collective bargaining 
 agreement that includes the date on which the term of 
 participation expires. 

    (f) Each participating eligible employer shall notify the 
 commissioner of names of individuals who will be participating 
 within two weeks of the commissioner receiving notice of the 
 parties' intent to participate.  The employer shall also submit 
 other information as required by the commissioner for 
 administration of the program.  

    Subd. 6.    Coverage.  (a) By January 1, 1989, the 
 commissioner shall announce the benefits of the program.  The 
 program shall include employee hospital, medical, dental, and 
 life insurance for employees and hospital and medical benefits 
 for dependents.  Health maintenance organization options and 
 other delivery system options may be provided if they are 
 available, cost-effective, and capable of servicing the number 
 of people covered in the program.  Participation in optional 
 coverages may be provided by collective bargaining agreements.  
 For employees not represented by an exclusive representative, 
 the employer may offer the optional coverages to eligible 
 employees and their dependents provided in the program. 

    (b) The commissioner, with the assistance of the 
 labor-management committee, shall periodically assess whether it 
 is financially feasible for the program to offer or to continue 
 an individual retiree program that has competitive premium rates 
 and benefits.  If the commissioner determines it to be feasible 
 to offer an individual retiree program, the commissioner shall 
 announce the applicable benefits, premium rates, and terms of 
 participation.  Eligibility to participate in the individual 
 retiree program is governed by subdivision 8, but applies to 
 retirees of eligible employers that do not participate in the 
 program and to those retirees' dependents and surviving spouses. 

    Subd. 6a.    Chiropractic services.  All benefits 
 provided by the program or a successor program relating to 
 expenses incurred for medical treatment or services of a 
 physician must also include chiropractic treatment and services 
 of a chiropractor to the extent that the chiropractic services 
 and treatment are within the scope of chiropractic licensure. 

    This subdivision is intended to provide equal access to 
 benefits for program members who choose to obtain treatment for 
 illness or injury from a doctor of chiropractic, as long as the 
 treatment falls within the chiropractor's scope of practice. 
 This subdivision is not intended to change or add to the 
 benefits provided for in the program. 

    Subd. 7.    Premiums.  The proportion of premium paid by 
 the employer and employee is subject to collective bargaining or 
 personnel policies.  If, at the beginning of the coverage 
 period, no collective bargaining agreement has been finalized, 
 the increased dollar costs, if any, from the previous year is 
 the sole responsibility of the individual participant until a 
 collective bargaining agreement states otherwise.  Premiums, 
 including an administration fee, shall be established by the 
 commissioner.  Each employer shall pay monthly the amounts due 
 for employee benefits including the amounts under subdivision 8 
 to the commissioner no later than the dates established by the 
 commissioner.  If an employer fails to make the payments as 
 required, the commissioner may cancel program benefits and 
 pursue other civil remedies.  

    Subd. 8.    Continuation of coverage.  (a) A former 
 employee of an employer participating in the program who is 
 receiving a public pension disability benefit or an annuity or 
 has met the age and service requirements necessary to receive an 
 annuity under chapter 353, 353C, 354, 354A, 356, 422A, 423, 
 423A, or 424, and the former employee's dependents, are eligible 
 to participate in the program.  This participation is at the 
 person's expense unless a collective bargaining agreement or 
 personnel policy provides otherwise.  Premiums for these 
 participants must be established by the commissioner.  

    The commissioner may provide policy exclusions for 
 preexisting conditions only when there is a break in coverage 
 between a participant's coverage under the employment-based 
 group insurance program and the participant's coverage under 
 this section.  An employer shall notify an employee of the 
 option to participate under this paragraph no later than the 
 effective date of retirement.  The retired employee or the 
 employer of a participating group on behalf of a current or 
 retired employee shall notify the commissioner within 30 days of 
 the effective date of retirement of intent to participate in the 
 program according to the rules established by the commissioner. 

    (b) The spouse of a deceased employee or former employee 
 may purchase the benefits provided at premiums established by 
 the commissioner if the spouse was a dependent under the 
 employee's or former employee's coverage under this section at 
 the time of the death.  The spouse remains eligible to 
 participate in the program as long as the group that included 
 the deceased employee or former employee participates in the 
 program.  Coverage under this clause must be coordinated with 
 relevant insurance benefits provided through the federally 
 sponsored Medicare program.  

    (c) The program benefits must continue in the event of 
 strike permitted by section 179A.18, if the exclusive 
 representative chooses to have coverage continue and the 
 employee pays the total monthly premiums when due.  

    (d) A participant who discontinues coverage may not 
 reenroll. 

    Persons participating under these paragraphs shall make 
 appropriate premium payments in the time and manner established 
 by the commissioner. 

    Subd. 9.    Insurance trust fund.  The insurance trust 
 fund in the state treasury consists of deposits of the premiums 
 received from employers participating in the program and 
 transfers before July 1, 1994, from the excess contributions 
 holding account established by section 353.65, subdivision 7.  
 All money in the fund is appropriated to the commissioner to pay 
 insurance premiums, approved claims, refunds, administrative 
 costs, and other related service costs.  Premiums paid by 
 employers to the fund are exempt from the taxes imposed by 
 chapter 297I.  The commissioner shall reserve an amount of money 
 to cover the estimated costs of claims incurred but unpaid.  The 
 state board of investment shall invest the money according to 
 section 11A.24.  Investment income and losses attributable to 
 the fund must be credited to the fund. 

    Subd. 10.    Exemption.  The public employee insurance 
 program and, where applicable, the employers participating in it 
 are exempt from chapters 60A, 62A, 62C, 62D, 62E, and 62H, 
 section 471.617, subdivisions 2 and 3, and the bidding 
 requirements of section 471.6161. 

    HIST: 1987 c 404 s 89; 1988 c 605 s 2; 1988 c 629 s 13; 1988 c 
 667 s 16-19; 1989 c 90 s 1; 1989 c 319 art 6 s 1; 1990 c 571 s 
 30-36; 1990 c 589 art 2 s 1; 1991 c 128 s 4; 1991 c 291 art 9 s 
 1; 1992 c 488 s 2; 1992 c 491 s 1-4; 1994 c 632 art 3 s 46; 1995 
 c 248 art 10 s 13; 1Sp1995 c 3 art 13 s 1; 1996 c 412 art 13 s 
 1; 1998 c 271 s 1; 1998 c 397 art 11 s 3; 2000 c 394 art 2 s 2 

     43A.317 Minnesota employees insurance program. 

    Subdivision 1.    Intent.  The legislature finds that 
 the creation of a statewide program to provide employers with 
 the advantages of a large pool for insurance purchasing would 
 advance the welfare of the citizens of the state. 

    Subd. 2.    Definitions.  (a)    Scope.  For the 
 purposes of this section, the terms defined have the meaning 
 given them. 

    (b)    Commissioner.  "Commissioner" means the 
 commissioner of employee relations. 

    (c)    Eligible employee.  "Eligible employee" means an 
 employee eligible to participate in the program under the terms 
 described in subdivision 6. 

    (d)    Eligible employer.  "Eligible employer" means an 
 employer eligible to participate in the program under the terms 
 described in subdivision 5. 

    (e)    Eligible individual.  "Eligible individual" means 
 a person eligible to participate in the program under the terms 
 described in subdivision 6. 

    (f)    Employee.  "Employee" means an employee of an 
 eligible employer.  "Employee" includes a sole proprietor, 
 partner of a partnership, member of a limited liability company, 
 or independent contractor. 

    (g)    Employer.  "Employer" means a private person, 
 firm, corporation, partnership, limited liability company, 
 association, or other entity actively engaged in business or 
 public services.  "Employer" includes both for-profit and 
 nonprofit entities.  

    (h)    Program.  "Program" means the Minnesota employees 
 insurance program created by this section. 

    Subd. 3.    Administration.  After consulting with the 
 chairs of the senate governmental operations and veterans 
 committee and the house of representatives governmental 
 operations and veterans affairs policy committee, the 
 commissioner may determine when the program provided under this 
 section is available.  When the commissioner makes the program 
 available, the commissioner shall, consistent with the 
 provisions of this section, administer the program and determine 
 its coverage options, funding and premium arrangements, 
 contractual arrangements, and all other matters necessary to 
 administer the program.  The commissioner's contracting 
 authority for the program, including authority for competitive 
 bidding and negotiations, is governed by section 43A.23. 

    Subd. 4.    Advisory committee.  After the commissioner 
 consults as required in subdivision 3 and then determines to 
 make the program available, the commissioner shall establish a 
 ten-member advisory committee that includes five members who 
 represent eligible employers and five members who represent 
 eligible individuals.  The committee shall advise the 
 commissioner on issues related to administration of the 
 program.  The committee is governed by sections 15.014 and 
 15.059, and continues to exist while the program remains in 
 operation. 

    Subd. 5.    Employer eligibility.  (a)    Procedures. 
  All employers are eligible for coverage through the program 
 subject to the terms of this subdivision.  The commissioner 
 shall establish procedures for an employer to apply for coverage 
 through the program. 

    (b)    Term.  The initial term of an employer's coverage 
 may be for up to two years from the effective date of the 
 employer's application.  After that, coverage will be 
 automatically renewed for an additional term unless the employer 
 gives notice of withdrawal from the program according to 
 procedures established by the commissioner or the commissioner 
 gives notice to the employer of the discontinuance of the 
 program.  The commissioner may establish conditions under which 
 an employer may withdraw from the program prior to the 
 expiration of a term, including by reason of an increase in 
 health coverage premiums of 50 percent or more from one 
 insurance year to the next.  An employer that withdraws from the 
 program may not reapply for coverage for a period of time equal 
 to its initial term of coverage. 

    (c)    Minnesota work force.  An employer is not 
 eligible for coverage through the program if five percent or 
 more of its eligible employees work primarily outside Minnesota, 
 except that an employer may apply to the program on behalf of 
 only those employees who work primarily in Minnesota.  

    (d)    Employee participation; aggregation of groups.  
 An employer is not eligible for coverage through the program 
 unless its application includes all eligible employees who work 
 primarily in Minnesota, except employees who waive coverage as 
 permitted by subdivision 6.  Private entities that are eligible 
 to file a combined tax return for purposes of state tax laws are 
 considered a single employer, except as otherwise approved by 
 the commissioner. 

    (e)    Private employer.  A private employer is not 
 eligible for coverage unless it has two or more eligible 
 employees in the state of Minnesota.  If an employer has only 
 two eligible employees and one is the spouse, child, sibling, 
 parent, or grandparent of the other, the employer must be a 
 Minnesota domiciled employer and have paid social security or 
 self-employment tax on behalf of both eligible employees. 

    (f)    Minimum participation.  The commissioner must 
 require as a condition of employer eligibility that at least 75 
 percent of its eligible employees who have not waived coverage 
 participate in the program.  The participation level of eligible 
 employees must be determined at the initial offering of coverage 
 and at the renewal date of coverage.  For purposes of this 
 section, waiver of coverage includes only waivers due to 
 coverage under another group health benefit plan.  

    (g)    Employer contribution.  The commissioner must 
 require as a condition of employer eligibility that the employer 
 contribute at least 50 percent toward the cost of the premium of 
 the employee and may require that the contribution toward the 
 cost of coverage is structured in a way that promotes price 
 competition among the coverage options available through the 
 program. 

    (h)    Enrollment cap.  The commissioner may limit 
 employer enrollment in the program if necessary to avoid 
 exceeding the program's reserve capacity. 

    Subd. 6.    Individual eligibility.  (a)    Procedures. 
  The commissioner shall establish procedures for eligible 
 employees and other eligible individuals to apply for coverage 
 through the program. 

    (b)    Employees.  An employer shall determine when it 
 applies to the program the criteria its employees must meet to 
 be eligible for coverage under its plan.  An employer may 
 subsequently change the criteria annually or at other times with 
 approval of the commissioner.  The criteria must provide that 
 new employees become eligible for coverage after a probationary 
 period of at least 30 days, but no more than 90 days. 

    (c)    Other individuals.  An employer may elect to 
 cover under its plan: 

    (1) the spouse, dependent children, and dependent 
 grandchildren of a covered employee; 

    (2) a retiree who is eligible to receive a pension or 
 annuity from the employer and a covered retiree's spouse, 
 dependent children, and dependent grandchildren; 

    (3) the surviving spouse, dependent children, and dependent 
 grandchildren of a deceased employee or retiree, if the spouse, 
 children, or grandchildren were covered at the time of the 
 death; 

    (4) a covered employee who becomes disabled, as provided in 
 sections 62A.147 and 62A.148; or 

    (5) any other categories of individuals for whom group 
 coverage is required by state or federal law. 

    An employer shall determine when it applies to the program 
 the criteria individuals in these categories must meet to be 
 eligible for coverage.  An employer may subsequently change the 
 criteria annually, or at other times with approval of the 
 commissioner.  The criteria for dependent children and dependent 
 grandchildren may be no more inclusive than the criteria under 
 section 43A.18, subdivision 2.  This paragraph shall not be 
 interpreted as relieving the program from compliance with any 
 federal and state continuation of coverage requirements. 

    (d)    Waiver and late entrance.  An eligible individual 
 may waive coverage at the time the employer joins the program or 
 when coverage first becomes available.  The commissioner may 
 establish a preexisting condition exclusion of not more than 18 
 months for late entrants as defined in section 62L.02, 
 subdivision 19. 

    (e)    Continuation coverage.  The program shall provide 
 all continuation coverage required by state and federal law. 

    Subd. 7.    Coverage.  Coverage is available through the 
 program beginning on July 1, 1993.  Until an arrangement is in 
 place to provide coverage through a transfer of risk to one or 
 more carriers regulated under chapter 62A, 62C, or 62D, the 
 commissioner shall solicit bids under section 43A.23, from 
 carriers regulated under chapters 62A, 62C, and 62D, to provide 
 coverage of eligible individuals.  The commissioner shall 
 provide coverage through contracts with carriers, unless the 
 commissioner receives no reasonable bids from carriers. 

    (a)    Health coverage.  Health coverage is available to 
 all employers in the program.  The commissioner shall attempt to 
 establish health coverage options that have strong care 
 management features to control costs and promote quality and 
 shall attempt to make a choice of health coverage options 
 available.  Health coverage for a retiree who is eligible for 
 the federal Medicare program must be administered as though the 
 retiree is enrolled in Medicare parts A and B.  To the extent 
 feasible as determined by the commissioner and in the best 
 interests of the program, the commissioner shall model coverage 
 after the plan established in section 43A.18, subdivision 2.  
 Health coverage must include at least the benefits required of a 
 carrier regulated under chapter 62A, 62C, or 62D for comparable 
 coverage.  Coverage under this paragraph must not be provided as 
 part of the health plans available to state employees. 

    (b)    Optional coverages.  In addition to offering 
 health coverage, the commissioner may arrange to offer dental 
 coverage through the program.  Employers with health coverage 
 may choose to offer dental coverage according to the terms 
 established by the commissioner.  

    (c)    Open enrollment.  The program must meet all 
 underwriting requirements of chapter 62L and must provide 
 periodic open enrollments for eligible individuals for those 
 coverages where a choice exists. 

    (d)    Technical assistance.  The commissioner may 
 arrange for technical assistance and referrals for eligible 
 employers in areas such as health promotion and wellness, 
 employee benefits structure, tax planning, and health care 
 analysis services as described in section 62J.2930. 

    Subd. 8.    Premiums.  (a)    Payments.  Employers 
 enrolled in the program shall pay premiums according to terms 
 established by the commissioner.  If an employer fails to make 
 the required payments, the commissioner may cancel coverage and 
 pursue other civil remedies. 

    (b)    Rating method.  The commissioner shall determine 
 the premium rates and rating method for the program.  The rating 
 method for eligible small employers must meet or exceed the 
 requirements of chapter 62L.  The rating methods must recover in 
 premiums all of the ongoing costs for state administration and 
 for maintenance of a premium stability and claim fluctuation 
 reserve.  On June 30, 1999, after paying all necessary and 
 reasonable expenses, the commissioner must apply up to 
 $2,075,000 of any remaining balance in the Minnesota employees' 
 insurance trust fund to repayment of any amounts drawn or 
 expended for this program from the health care access fund. 

    (c)    Taxes and assessments.  To the extent that the 
 program operates as a self-insured group, the premiums paid to 
 the program are not subject to the taxes imposed by chapter 
 297I, but the program is subject to a Minnesota comprehensive 
 health association assessment under section 62E.11. 

    Subd. 9.    Minnesota employees insurance trust fund.  
 (a)   Contents.  The Minnesota employees insurance trust fund 
 in the state treasury consists of deposits received from 
 eligible employers and individuals, contractual settlements or 
 rebates relating to the program, investment income or losses, 
 and direct appropriations. 

    (b)    Appropriation.  All money in the fund is 
 appropriated to the commissioner to pay insurance premiums, 
 approved claims, refunds, administrative costs, and other costs 
 necessary to administer the program. 

    (c)    Reserves.  For any coverages for which the 
 program does not contract to transfer full financial 
 responsibility, the commissioner shall establish and maintain 
 reserves:  

    (1) for claims in process, incomplete and unreported 
 claims, premiums received but not yet earned, and all other 
 accrued liabilities; and 

    (2) to ensure premium stability and the timely payment of 
 claims in the event of adverse claims experience.  The reserve 
 for premium stability and claim fluctuations must be established 
 according to the standards of section 62C.09, subdivision 3, 
 except that the reserve may exceed the upper limit under this 
 standard until July 1, 1997.  

    (d)    Investments.  The state board of investment shall 
 invest the fund's assets according to section 11A.24.  
 Investment income and losses attributable to the fund must be 
 credited to the fund. 

    Subd. 10.    Program status.  The Minnesota employees 
 insurance program is a state program to provide the advantages 
 of a large pool to small employers for purchasing health 
 coverage, other coverages, and related services from insurance 
 companies, health maintenance organizations, and other 
 organizations.  The program is not an insurance company.  
 Coverage under this program shall be considered a certificate of 
 insurance or similar evidence of coverage and is subject to all 
 applicable requirements of chapters 60A, 62A, 62C, 62E, 62H, 
 62L, and 72A, and is subject to regulation by the commissioner 
 of commerce to the extent applicable.  

    Subd. 11. Repealed, 1996 c 310 s 1 

    Subd. 12.    Status of agents.  Notwithstanding sections 
 60K.03, subdivision 5, and 72A.07, the program may use, and pay 
 referral fees, commissions, or other compensation to, agents 
 licensed as life and health agents under chapter 60K or licensed 
 under section 62C.17, regardless of whether the agents are 
 appointed to represent the particular health carriers or 
 community integrated service networks that provide the coverage 
 available through the program.  When acting under this 
 subdivision, an agent is not an agent of the health carrier or 
 community integrated service network, with respect to that 
 transaction. 

    HIST: 1992 c 549 art 3 s 1; 1993 c 13 art 1 s 15; 1993 c 247 
 art 3 s 1-3; 1993 c 345 art 8 s 1; 1994 c 625 art 10 s 1,50; 
 1995 c 234 art 5 s 23; 1995 c 248 art 10 s 14; 1997 c 225 art 2 
 s 62; 1998 c 366 s 51; 1999 c 182 s 15,16; 2000 c 394 art 2 s 3 

     43A.318 Public employees group long-term care insurance 
  program. 

    Subdivision 1.    Definitions.  (a)    Scope.  For 
 the purposes of this section, the terms defined have the meaning 
 given them. 

    (b)    Advisory committee; committee.  "Advisory 
 committee" or "committee" means the committee created under 
 subdivision 3. 

    (c)    Committee member; member.  "Committee member" or 
 "member" means a person serving on the advisory committee 
 created under subdivision 3. 

    (d)    Eligible person.  "Eligible person" means: 

    (1) an active member of a public pension plan of the state; 

    (2) an employee or elected official of the state who is not 
 eligible for participation in a public employee pension plan of 
 the state; or 

    (3) a spouse or parent of a person described in clause (1) 
 or (2), regardless of the enrollment status in the program of 
 the person described in clause (1) or (2). 

    (e)    Program.  "Program" means the statewide public 
 employees long-term care insurance program created under 
 subdivision 2. 

    (f)    Public employee pension plan.  "Public employee 
 pension plan" means any Minnesota public pension plan or fund 
 that provides pension or retirement coverage for state employees.

    (g)    Qualified vendor.  "Qualified vendor" means an 
 entity licensed or authorized to underwrite, provide, or 
 administer group long-term care insurance benefits in this state.

    Subd. 2.    Program creation; general provisions.  (a) 
 The commissioner may administer a program to make long-term care 
 coverage available to eligible persons.  The commissioner may 
 determine the program's funding arrangements, request bids from 
 qualified vendors, and negotiate and enter into contracts with 
 qualified vendors.  Contracts are not subject to the 
 requirements of section 16C.16 or 16C.19.  Contracts must be for 
 a uniform term of at least one year, but may be made 
 automatically renewable from term to term in the absence of 
 notice of termination by either party.  The program may not be 
 self-insured until the commissioner has completed an actuarial 
 study of the program and reported the results of the study to 
 the legislature and self-insurance has been specifically 
 authorized by law. 

    (b) The program may provide coverage for home, community, 
 and institutional long-term care and any other benefits as 
 determined by the commissioner.  Coverage is optional.  The 
 enrolled eligible person must pay the full cost of the coverage. 

    (c) The commissioner shall promote activities that attempt 
 to raise awareness of the need for long-term care insurance 
 among residents of the state and encourage the increased 
 prevalence of long-term care coverage.  These activities must 
 include the sharing of knowledge gained in the development of 
 the program. 

    (d) The commissioner may employ and contract with persons 
 and other entities to perform the duties under this section and 
 may determine their duties and compensation consistent with this 
 chapter. 

    (e) The benefits provided under this section are not terms 
 and conditions of employment as defined under section 179A.03, 
 subdivision 19, and are not subject to collective bargaining. 

    (f) The commissioner shall establish underwriting criteria 
 for entry of all eligible persons into the program.  Eligible 
 persons who would be immediately eligible for benefits may not 
 enroll. 

    (g) Eligible persons who meet underwriting criteria may 
 enroll in the program upon hiring and at other times established 
 by the commissioner. 

    (h) An eligible person enrolled in the program may continue 
 to participate in the program even if an event, such as 
 termination of employment, changes the person's employment 
 status. 

    (i) Participating public employee pension plans and public 
 employers may provide automatic pension or payroll deduction for 
 payment of long-term care insurance premiums to qualified 
 vendors contracted with under this section. 

    (j) The premium charged to program enrollees must include 
 an administrative fee to cover all program expenses incurred in 
 addition to the cost of coverage.  All fees collected are 
 appropriated to the commissioner for the purpose of 
 administrating the program. 

    Subd. 3.    Advisory committee.  (a) The committee 
 consists of:  

    (1) the executive directors or designees of the Minnesota 
 state retirement system, the public employees retirement 
 association, and the teachers retirement association; 

    (2) one member of the investment advisory committee of the 
 state board of investment provided under section 11A.08 
 appointed by the board; 

    (3) one staff member of the department of human services 
 appointed by the commissioner of human services; 

    (4) one staff member of the department of commerce 
 appointed by the commissioner of commerce; 

    (5) one member of the medical community with clinical 
 knowledge of long-term care appointed by the commissioner of 
 employee relations; and 

    (6) six members representing the interests of eligible 
 persons, including exclusive representatives of employees as 
 defined by section 179A.03, subdivision 8, and unrepresented 
 employees appointed by the commissioner of employee relations. 

    (b) Appointment to and removal from the committee must be 
 in the manner provided in section 15.059. 

    (c) The members of the committee described in paragraph 
 (a), clauses (1) to (5), serve without term limits.  The terms 
 of members described in paragraph (a), clause (6), are governed 
 by section 15.059, subdivision 2. 

    (d) Members serve without compensation, but are eligible 
 for reimbursement of expenses in the same manner and amount as 
 authorized under section 43A.18, subdivision 2. 

    (e) The committee shall advise the commissioner on program 
 issues, including, but not limited to, benefits, coverage, 
 funding, eligibility, enrollment, underwriting, and marketing. 

    Subd. 4.    Long-term care insurance trust fund.  (a) 
 The long-term care insurance trust fund in the state treasury 
 consists of deposits of the premiums received from persons 
 enrolled in the program.  All money in the fund is appropriated 
 to the commissioner to pay premiums, claims, refunds, 
 administrative costs, and other related service costs.  The 
 commissioner shall reserve an amount of money sufficient to 
 cover the actuarially estimated costs of claims incurred but 
 unpaid.  The trust fund must be used solely for the purpose of 
 the program. 

    (b) The state board of investment shall invest the money in 
 the fund according to section 11A.24.  Investment income and 
 losses attributable to the fund must be credited to or deducted 
 from the fund. 

    Subd. 5.    Private sources.  This section does not 
 prohibit or limit individuals or local governments from 
 purchasing long-term care insurance through other private 
 sources. 

    HIST: 1999 c 250 art 1 s 78 

     43A.319 Employee assistance program. 

    The commissioner shall provide an employee assistance 
 program of training, diagnostic, and referral services for state 
 employees and their dependents.  

    HIST: 1984 c 531 s 3; 1984 c 544 s 44; 1984 c 655 art 2 s 13 
 subd 1; 1986 c 444; 1987 c 365 s 11; 1989 c 343 s 5; 1993 c 337 
 s 2; 1999 c 250 art 1 s 114 

     43A.32 Political activities. 

    Subdivision 1.    Prohibition.  No employee shall, 
 directly or indirectly, during hours of employment solicit or 
 receive funds for political purposes, or use official authority 
 or influence to compel an employee in the classified service to 
 apply for membership in or become a member of any political 
 organization, to pay or promise to pay any assessment, 
 subscription, or contribution or to take part in any political 
 activity.  

    Subd. 2.    Leaves of absence for elected public 
 officials, candidates.  Except as herein provided any officer 
 or employee in the classified service shall:  

    (a) Take leave of absence upon assuming an elected federal 
 office or an elected state office other than state legislative 
 office or, if elected to state legislative office, during times 
 that the legislature is in session; 

    (b) Take leave of absence upon assuming any elected public 
 office other than enumerated in clause (a), if, in the opinion 
 of the commissioner, the holding of the office conflicts with 
 regular state employment; and 

    (c) Upon request, be granted leave of absence upon becoming 
 a candidate, or during the course of candidacy, for any elected 
 public office. 

    All requests for opinions of the commissioner and all 
 opinions from the commissioner under the provisions of clause 
 (b) shall be in writing and shall be delivered by mail or by use 
 of a facsimile machine. 

    The commissioner shall issue an opinion under the 
 provisions of clause (b) within seven calendar days of receipt 
 of the request. 

    Subd. 3.    Leave of absence.  No executive branch 
 officer or employee in the unclassified service who is covered 
 by a collective bargaining agreement, and no executive branch 
 officer or employee in the classified service, may be required 
 to take a leave of absence upon becoming a candidate, or during 
 the course of candidacy, for any elected public office.  Said 
 officers and employees shall take leave of absence upon assuming 
 an elected federal office or an elected state office other than 
 state legislative office or, if elected to state legislative 
 office, during times that the legislature is in session. 

    HIST: 1981 c 210 s 32; 1986 c 444; 1987 c 281 s 1,2; 1994 c 
 429 s 4 

     43A.321 Volunteer firefighter and rescue workers; 
  agreements. 

    (a) An employee may reach an agreement with the employee's 
 appointing authority to respond to emergency calls as a 
 volunteer emergency fire or rescue worker during working hours, 
 provided that: 

    (1) the employee does not respond to a call when the 
 employee's sudden absence would endanger others; and 

    (2) the employee remits to the appointing authority any 
 compensation received for responding to the call.  

    (b) If such an agreement is entered into: 

    (1) the appointing authority shall make no deductions from 
 the employee's wages or sick or vacation time for time spent 
 responding to calls; and 

    (2) workers' compensation liability is the responsibility 
 of the entity for which the emergency services are provided 
 while the employee is responding to the call. 

    HIST: 1993 c 136 s 1 

     43A.33 Grievances. 

    Subdivision 1.    Discharge, suspension, demotion for 
 cause, salary decrease.  Managers and employees shall attempt 
 to resolve disputes through informal means prior to the 
 initiation of disciplinary action.  No permanent employee in the 
 classified service shall be reprimanded, discharged, suspended 
 without pay, or demoted, except for just cause. 

    Subd. 2.    Just cause.  For purposes of this section, 
 just cause includes, but is not limited to, consistent failure 
 to perform assigned duties, substandard performance, 
 insubordination, and serious violation of written policies and 
 procedures, provided the policies and procedures are applied in 
 a uniform, nondiscriminatory manner.  

    Subd. 2a.    Abuse.  In an arbitration or hearing 
 proceeding involving discipline of an employee for allegedly 
 abusing a resident of a state hospital or a state nursing home, 
 "abuse" includes but is not limited to:  

    (1) Conduct which constitutes abuse under policies or 
 procedures adopted by state hospitals or state nursing homes; or 

    (2) Any act which constitutes a violation under sections 
 609.221 to 609.235, 609.322, 609.342, 609.343, 609.344, or 
 609.345; or 

    (3) The intentional and nontherapeutic infliction of 
 physical pain or injury, or any persistent course of conduct 
 intended to produce mental or emotional distress. 

    Subd. 3.    Procedures.  Procedures for discipline and 
 discharge of employees covered by collective bargaining 
 agreements shall be governed by the agreements.  Procedures for 
 employees not covered by a collective bargaining agreement shall 
 be governed by this subdivision and by the commissioner's and 
 managerial plans.  

    (a) For discharge, suspension without pay or demotion, no 
 later than the effective date of such action, a permanent 
 classified employee not covered by a collective bargaining 
 agreement shall be given written notice by the appointing 
 authority.  The content of that notice as well as the employee's 
 right to reply to the appointing authority shall be as 
 prescribed in the grievance procedure contained in the 
 applicable plan established pursuant to section 43A.18.  The 
 notice shall also include a statement that the employee may 
 elect to appeal the action to the office of administrative 
 hearings within 30 calendar days following the effective date of 
 the disciplinary action.  A copy of the notice and the 
 employee's reply, if any, shall be filed by the appointing 
 authority with the commissioner no later than ten calendar days 
 following the effective date of the disciplinary action.  The 
 commissioner shall have final authority to decide whether the 
 appointing authority shall settle the dispute prior to the 
 hearing provided under subdivision 4. 

    (b) For discharge, suspension, or demotion of an employee 
 serving an initial probationary period, and for noncertification 
 in any subsequent probationary period, grievance procedures 
 shall be as provided in the plan established pursuant to section 
 43A.18. 

    (c) Any permanent employee who is covered by a collective 
 bargaining agreement may elect to appeal to the chief 
 administrative law judge within 30 days following the effective 
 date of the discharge, suspension, or demotion if the collective 
 bargaining agreement provides that option.  In no event may an 
 employee use both the procedure under this section and the 
 grievance procedure available pursuant to sections 179A.01 to 
 179A.25.  

    Subd. 4.    Appeals; public hearings, findings.  Within 
 ten days of receipt of the employee's written notice of appeal, 
 the chief administrative law judge shall assign an 
 administrative law judge to hear the appeal. 

    The hearing shall be conducted pursuant to the contested 
 case provisions of chapter 14 and the procedural rules adopted 
 by the chief administrative law judge.  If the administrative 
 law judge finds, based on the hearing record, that the action 
 appealed was not taken by the appointing authority for just 
 cause, the employee shall be reinstated to the position, or an 
 equal position in another division within the same agency, 
 without loss of pay.  If the administrative law judge finds that 
 there exists sufficient grounds for institution of the 
 appointing authority's action but the hearing record establishes 
 extenuating circumstances, the administrative law judge may 
 reinstate the employee, with full, partial, or no pay, or may 
 modify the appointing authority's action.  The administrative 
 law judge's order shall be the final decision, but it may be 
 appealed according to the provisions of sections 14.63 to 14.68. 
 Settlement of the entire dispute by mutual agreement is 
 encouraged at any stage of the proceedings.  Any settlement 
 agreement shall be final and binding when signed by all parties 
 and submitted to the chief administrative law judge of the 
 office of administrative hearings.  Except as provided in 
 collective bargaining agreements the appointing authority shall 
 bear the costs of the administrative law judge for hearings 
 provided for in this section. 

    HIST: 1981 c 210 s 33; 1982 c 424 s 130; 1982 c 560 s 31-33; 
 1984 c 425 s 1; 1984 c 462 s 27; 1984 c 544 s 82,83; 1986 c 444; 
 1987 c 186 s 10 

     43A.34 Retirement. 

    Subdivision 1.    Mandatory retirement age.  Employees 
 in the executive branch who are subject to the provisions of the 
 Minnesota state retirement system or the teachers retirement 
 association and who are serving as faculty members or 
 administrators under a contract of unlimited terms or similar 
 arrangement providing for unlimited tenure at an institution of 
 higher education, as defined by United States Code, title 20, 
 section 1141(a), as amended through December 31, 1986, must 
 retire from employment by the state upon reaching the age of 70, 
 except as provided in other law.  Other employees in the 
 executive branch who are subject to the provisions of the 
 Minnesota state retirement system or the teachers retirement 
 association, except as provided in subdivision 3 or 4, or as 
 provided in section 354.44, subdivision 1a, are not subject to a 
 mandatory retirement age provision. 

    Subd. 2. Repealed, 1987 c 186 s 16; 1987 c 284 art 2 s 9 

    Subd. 3.    Correctional personnel exempted.  Any 
 employee of the state of Minnesota in a covered classification 
 as defined in section 352.91, who is a member of the special 
 retirement program for correctional personnel established 
 pursuant to sections 352.90 to 352.95, may elect or be required 
 to retire from employment in the covered correctional position 
 upon reaching the age of 55 years.  

    A correctional employee occupying a position covered by 
 provisions of section 352.91, desiring employment beyond the 
 conditional mandatory retirement age shall, at least 30 days 
 prior to the date of reaching the conditional mandatory 
 retirement age of 55 years, and annually thereafter, request in 
 writing to the employee's appointing authority authorization to 
 continue in employment in the covered position.  Upon receiving 
 the request, the appointing authority shall have a medical 
 examination made of the employee.  If the results of the medical 
 examination establish the mental and physical ability of the 
 employee to continue the duties of employment, the employee 
 shall be continued in employment for the following year.  If the 
 determination of the appointing authority based upon the results 
 of the physical examination is adverse, the disposition of the 
 matter shall be decided by the commissioner of corrections or, 
 for employees of the Minnesota security hospital, the 
 commissioner of human services.  Based on the information 
 provided, the decision of the applicable commissioner shall be 
 made in writing and shall be final.  

    Subd. 4.    Officers exempted.  Notwithstanding any 
 provision to the contrary, (a) conservation officers and crime 
 bureau officers who were first employed on or after July 1, 
 1973, and who are members of the state patrol retirement fund by 
 reason of their employment, and members of the Minnesota state 
 patrol division and alcohol and gambling enforcement division of 
 the department of public safety who are members of the state 
 patrol retirement association by reason of their employment, 
 shall not continue employment after attaining the age of 60 
 years, except for a fractional portion of one year that will 
 enable the employee to complete the employee's next full year of 
 allowable service as defined pursuant to section 352B.01, 
 subdivision 3; and (b) conservation officers and crime bureau 
 officers who were first employed and are members of the state 
 patrol retirement fund by reason of their employment before July 
 1, 1973, shall not continue employment after attaining the age 
 of 70 years.  

    HIST: 1981 c 37 s 2; 1981 c 210 s 34; 1982 c 578 art 3 s 1; 
 1984 c 654 art 5 s 58; 1986 c 444; 1987 c 186 s 12,13; 1987 c 
 284 art 2 s 1,2; 1990 c 570 art 1 s 1; 1997 c 129 art 2 s 2 

     43A.345 Early retirement incentive. 

    Subdivision 1.    Eligibility.  The incentive in 
 subdivision 2 is available to any employee of the bureau of 
 criminal apprehension in the department of public safety who: 

    (1) retires during the pay period in which the employee's 
 55th birthday occurs, or retires during the first pay period 
 after the employee's 55th birthday in which the employee's 
 anniversary date occurs; 

    (2) is covered by the state patrol retirement fund and is 
 eligible to receive an annuity from that fund at the time of 
 retirement; and 

    (3) is receiving the full employer contribution for health 
 and dental coverage immediately before retirement, or is on an 
 unpaid leave of absence immediately before retirement which 
 began not more than six months before retirement, during which 
 leave the employee continues to be covered by the state group 
 insurance program by employee payment of premiums. 

    Subd. 2.    Incentive.  For an employee who meets the 
 requirements of subdivision 1, the employer shall pay the full 
 employer contribution, as specified in the collective bargaining 
 agreement with the bargaining unit in section 179A.10, 
 subdivision 2, clause (1), for health and dental insurance for 
 the employee and, if the employee had dependent coverage 
 immediately before retirement, for the employee's dependents.  
 Notwithstanding section 179A.20, subdivision 2a, the employer 
 contributions under this subdivision must continue until the 
 employee reaches age 65.  The postretirement health and dental 
 insurance coverage provided under this section is that coverage 
 the employee was receiving as of the date of retirement, subject 
 to any changes in coverage specified in the collective 
 bargaining agreement with the bargaining unit in section 
 179A.10, subdivision 2, clause (1). 

    Subd. 3.    Pre-55 incentive.  An employee who meets the 
 conditions in subdivision 1 but has attained the age of 50 but 
 not yet 55 at the time of retirement must receive until age 65 
 an employer contribution of 120 times the amount of the monthly 
 employer contribution applicable to the employee at the time of 
 retirement, divided by the number of months from the date of 
 retirement until the employee attains age 65.  

    Subd. 4.    Duration.  If a collective bargaining 
 agreement with the bargaining unit in section 179A.10, 
 subdivision 2, clause (1), does not contain an early retirement 
 incentive similar to that provided in this section, the benefits 
 under this section are not available to an employee who retires 
 after the implementation date of the agreement. 

    Subd. 5.    Transition.  An employee otherwise eligible 
 for an early retirement incentive under subdivisions 1 and 2 who 
 retires on or after the employee's 55th birthday and between 
 June 30, 1997, and July 1, 1998, is entitled to the incentive in 
 subdivision 2. 

    HIST: 1998 c 351 s 3 

     43A.35 Death benefit for retired employees. 

    Employees who retire from the civil service on or after 
 July 1, 1977, and before July 1, 1981, shall be entitled to a 
 $500 cash death benefit payable to a beneficiary designated by 
 the employee, if, at the time of the employee's death, the 
 employee is entitled to an annuity under a state retirement 
 program.  A $500 cash death benefit shall also be payable to the 
 designated beneficiary of an employee who becomes totally and 
 permanently disabled after July 1, 1979, and before July 1, 
 1981, and who at the time of death is receiving a state 
 disability benefit and is eligible for a deferred annuity under 
 a state retirement program.  

    Employees who retire from the civil service on or after 
 July 1, 1981 shall be entitled to a cash death benefit payable 
 to a beneficiary designated by the employee if provided in 
 collective bargaining agreements or plans pursuant to section 
 43A.18 in effect at the time of the employee's retirement.  

    HIST: 1981 c 210 s 35 

     43A.36 Relationships with other agencies and 
  jurisdictions. 

    Subdivision 1.    Cooperation; state agencies.  The 
 commissioner may delegate administrative functions associated 
 with the duties of the commissioner to appointing authorities 
 who have the capability to perform such functions when the 
 commissioner determines that it is in the best interests of the 
 state civil service.  The commissioner shall consult with 
 agencies and agencies shall cooperate as appropriate in 
 implementation of this chapter.  

    The commissioner, in conjunction with appointing 
 authorities, shall analyze and assess current and future human 
 resource requirements of the civil service and coordinate 
 personnel actions throughout the civil service to meet the 
 requirements.  The commissioner shall permit appointing 
 authorities to use eligible lists in making appointments to 
 positions in the unclassified service and shall provide 
 recruiting assistance.  

    The head of each agency in the executive branch shall 
 designate an agency personnel officer.  The agency personnel 
 officer shall be accountable to the agency head for all 
 personnel functions prescribed by laws, rules, collective 
 bargaining agreements, the commissioner and the agency head.  
 Except when otherwise prescribed by the agency head in a 
 specific instance, the personnel officer shall be assumed to be 
 the authority accountable to the agency head over any other 
 officer or employee in the agency for personnel functions.  

    The head of each agency in the executive branch shall 
 designate an affirmative action officer who shall have primary 
 responsibility for the administration of the agency's 
 affirmative action plan.  The officer shall report directly to 
 the head of the agency on affirmative action matters.  

    Subd. 2.    Services available to political subdivisions. 
  The services and facilities of the department and its staff 
 may be made available upon request to political subdivisions of 
 the state.  Enforcement and administration of other provisions 
 of this chapter shall take precedence over the provision of the 
 services and facilities.  Political subdivisions shall reimburse 
 the state for the reasonable cost of services and facilities. 

    Subd. 3.    Services exchanged with other jurisdictions. 
  The commissioner may enter into arrangements with personnel 
 agencies in other jurisdictions to exchange services.  The 
 commissioner may also join or subscribe to any association or 
 service having as its purpose the interchange of information 
 relating to the practices of personnel administration and labor 
 relations.  The commissioner is authorized as an agent of the 
 state of Minnesota to enter into contracts or cooperative 
 agreements involving matters of personnel and labor relations 
 with other governments within the United States.  

    HIST: 1981 c 210 s 36; 1997 c 79 s 18,19 

     43A.37 Payrolls. 

    Subdivision 1.    Accuracy of payroll.  The appointing 
 authority shall ensure that all employees have been appointed as 
 required by law, rules, or administrative procedures and that 
 the salary or compensation is within the compensation plan fixed 
 by law.  The appointing authority shall ensure that all 
 employees are performing service as required by law.  This 
 provision does not apply to positions defined in section 43A.08, 
 subdivision 1, clauses (8), (9), (10), and (12).  Employees to 
 whom this subdivision does not apply may be paid on the state's 
 payroll system, and the appointing authority or fiscal officer 
 submitting their payroll register is responsible for the 
 accuracy and legality of the payments. 

    Salary or compensation claims presented against existing 
 appropriations, which have been deemed in violation of the 
 provisions of this subdivision, may be certified for payment if, 
 upon investigation, the commissioner determines the personal 
 services for which payment is claimed actually have been 
 rendered in good faith without collusion and without intent to 
 defraud. 

    Subd. 2.    Salaries paid contrary to provisions recovered 
 from appointing employee.  Any sum intentionally paid contrary 
 to the provisions of this section may be recovered from any 
 employee making the appointments in contravention of the 
 provisions of law or the rules, or from any employee signing or 
 countersigning or authorizing the signing or countersigning of 
 any warrant for the payment of the sum, or from the sureties on 
 the official bond of any employee, in an action maintained by 
 the commissioner in the district court of any county within the 
 state.  All money recovered in any action brought under this 
 section when collected shall be paid into the state treasury.  

    Subd. 3.    Action against appointing employees; not 
 reimbursed for sums paid.  Any person appointed contrary to 
 the provisions of this chapter and the rules, whose payroll or 
 account is refused certification, shall have an action against 
 the employee employing or appointing or attempting to appoint 
 the person for the amount due by reason of the employment or 
 purported employment and the costs of the action.  No employee, 
 during the time of official service, or thereafter, shall be 
 reimbursed by the state for any sum recovered in any court 
 action under subdivision 2.  

    HIST: 1981 c 210 s 37; 1982 c 560 s 34; 1990 c 571 s 37; 1991 
 c 238 art 1 s 6; 1994 c 632 art 3 s 47 

     43A.375 Deduction for expenses; fraud or mistake. 

    If expenses are reimbursed to an employee by the employer 
 under circumstances of fraud or mistake, the expenses may be 
 deducted from wages earned by or due the employee. 

    HIST: 1997 c 97 s 10 

     43A.38 Code of ethics for employees in the executive 
  branch. 

    Subdivision 1.    Definitions.  For the purpose of this 
 section the following definitions shall apply: 

    (a) "Business" means any corporation, partnership, 
 proprietorship, firm, enterprise, franchise, association, 
 organization, self-employed individual or any other legal entity 
 which engages either in nonprofit or profit making activities. 

    (b) "Confidential information" means any information 
 obtained under government authority which has not become part of 
 the body of public information and which, if released 
 prematurely or in nonsummary form, may provide unfair economic 
 advantage or adversely affect the competitive position of an 
 individual or a business. 

    (c) "Private interest" means any interest, including but 
 not limited to a financial interest, which pertains to a person 
 or business whereby the person or business would gain a benefit, 
 privilege, exemption or advantage from the action of a state 
 agency or employee that is not available to the general public. 

    Subd. 2.    Acceptance of gifts; favors.  Employees in 
 the executive branch in the course of or in relation to their 
 official duties shall not directly or indirectly receive or 
 agree to receive any payment of expense, compensation, gift, 
 reward, gratuity, favor, service or promise of future employment 
 or other future benefit from any source, except the state for 
 any activity related to the duties of the employee unless 
 otherwise provided by law.  However, the acceptance of any of 
 the following shall not be a violation of this subdivision: 

    (a) Gifts of nominal value or gifts or textbooks which may 
 be accepted pursuant to section 15.43. 

    (b) Plaques or similar mementos recognizing individual 
 services in a field of specialty or to a charitable cause. 

    (c) Payment of reimbursement expenses for travel or meals, 
 not to exceed actual expenses incurred, which are not reimbursed 
 by the state and which have been approved in advance by the 
 appointing authority as part of the work assignment. 

    (d) Honoraria or expenses paid for papers, talks, 
 demonstrations, or appearances made by employees on their own 
 time for which they are not compensated by the state. 

    (e) Tips received by employees engaged in food service and 
 room cleaning at restaurant and lodging facilities in Itasca 
 State Park. 

    Subd. 3.    Use of confidential information.  An 
 employee in the executive branch shall not use confidential 
 information to further the employee's private interest, and 
 shall not accept outside employment or involvement in a business 
 or activity that will require the employee to disclose or use 
 confidential information. 

    Subd. 4.    Use of state property.  (a) An employee 
 shall not use or allow the use of state time, supplies or 
 state-owned or leased property and equipment for the employee's 
 private interests or any other use not in the interest of the 
 state, except as provided by law. 

    (b) An employee may use state time, property, or equipment 
 to communicate electronically with other persons including, but 
 not limited to, elected officials, the employer, or an exclusive 
 bargaining representative under chapter 179A, provided this use, 
 including the value of the time spent, results in no incremental 
 cost to the state or results in an incremental cost that is so 
 small as to make accounting for it unreasonable or 
 administratively impracticable. 

    (c) The commissioners of administration and employee 
 relations shall issue a statewide policy on the use of 
 electronic mail and other forms of electronic communications by 
 executive branch state employees.  The policy is not subject to 
 the provisions of chapter 14 or 179A.  Appointing authorities in 
 the legislative and judicial branches shall issue policies on 
 these issues for their employees.  The policies shall permit 
 state employees to make reasonable use of state time, property, 
 and equipment for personal communications and shall address 
 issues of privacy, content of communications, and the definition 
 of reasonable use as well as other issues the commissioners and 
 appointing authorities identify as necessary and relevant. 

    Subd. 5.    Conflicts of interest.  The following 
 actions by an employee in the executive branch shall be deemed a 
 conflict of interest and subject to procedures regarding 
 resolution of the conflicts, section 43A.39 or disciplinary 
 action as appropriate: 

    (a) use or attempted use of the employee's official 
 position to secure benefits, privileges, exemptions or 
 advantages for the employee or the employee's immediate family 
 or an organization with which the employee is associated which 
 are different from those available to the general public; 

    (b) acceptance of other employment or contractual 
 relationship that will affect the employee's independence of 
 judgment in the exercise of official duties; 

    (c) actions as an agent or attorney in any action or matter 
 pending before the employing agency except in the proper 
 discharge of official duties or on the employee's behalf; or 

    (d) the solicitation of a financial agreement for the 
 employee or entity other than the state when the state is 
 currently engaged in the provision of the services which are the 
 subject of the agreement or where the state has expressed an 
 intention to engage in competition for the provision of the 
 services; unless the affected state agency waives this clause. 

    Subd. 6.    Determination of conflicts of interest.  
 When an employee believes the potential for a conflict of 
 interest exists, it is the employee's duty to avoid the 
 situation.  A conflict of interest shall be deemed to exist when 
 a review of the situation by the employee, the appointing 
 authority or the commissioner determines any one of the 
 following conditions to be present: 

    (a) the use for private gain or advantage of state time, 
 facilities, equipment or supplies or badge, uniform, prestige or 
 influence of state office or employment; 

    (b) receipt or acceptance by the employee of any money or 
 other thing of value from anyone other than the state for the 
 performance of an act which the employee would be required or 
 expected to perform in the regular course or hours of state 
 employment or as part of the duties as an employee; 

    (c) employment by a business which is subject to the direct 
 or indirect control, inspection, review, audit or enforcement by 
 the employee; 

    (d) the performance of an act in other than the employee's 
 official capacity which may later be subject directly or 
 indirectly to the control, inspection, review, audit or 
 enforcement by the employee.  

    Subd. 7.    Resolution of conflict of interest.  If the 
 employee, appointing authority or commissioner determine that a 
 conflict of interest exists, the matter shall be assigned to 
 another employee who does not have a conflict of interest.  If 
 it is not possible to assign the matter to an employee who does 
 not have a conflict of interest, interested persons shall be 
 notified of the conflict and the employee may proceed with the 
 assignment. 

    Subd. 8.    Precedence of chapter 10A.  Where specific 
 provisions of chapter 10A apply to employees and would conflict 
 with this section, the provisions of chapter 10A shall apply. 

    Subd. 9.    Limits.  This section shall not be 
 interpreted to apply to any activity which is protected by 
 sections 179A.01 to 179A.25 and collective bargaining agreements 
 and practices thereunder nor to prevent a current or former 
 employee from accepting employment with a labor or employee 
 organization representing employees.  

    HIST: 1981 c 210 s 38; 1982 c 560 s 35; 1984 c 462 s 27; 
 1Sp1985 c 17 s 9; 1987 c 128 s 1; 1997 c 202 art 2 s 34 

     43A.39 Compliance with law. 

    Subdivision 1.    Prohibited acts; penalties.  All 
 employees shall comply with and aid in all proper ways the 
 enforcement of the provisions of this chapter.  No employee or 
 any other person shall intentionally: 

    (a) Make any false oral or written statement, mark, rating 
 or report concerning any application, examination, certification 
 or appointment made under provisions of this chapter or in any 
 manner commit or attempt to commit any fraud preventing the 
 impartial execution of this chapter; 

    (b) Directly or indirectly, give, render, pay, offer, 
 solicit, or accept any money, service or other valuable 
 consideration for any appointment, proposed appointment, 
 promotion or proposed promotion to, or any advantage in 
 obtaining, a position in the civil service; 

    (c) Defeat, deceive or obstruct any person in rights to 
 examination, eligibility, certification or appointment under 
 this chapter, or furnish to any person any special or secret 
 information for the purpose of affecting the rights or prospects 
 of any person with respect to appointment, advancement or 
 retention in the classified service; 

    (d) Violate the provisions of section 43A.37 or 43A.38; or 

    (e) If in the classified service, engage in activities 
 prohibited by section 43A.32. 

    Subd. 2.    Noncompliance.  Any employee who 
 intentionally fails to comply with the provisions of chapter 43A 
 shall be subject to disciplinary action and action pursuant to 
 chapter 609.  An appointing authority shall report in writing to 
 the legislative auditor when there is probable cause to believe 
 that a substantial violation has occurred.  Any person convicted 
 of a crime based on violations of this chapter shall be 
 ineligible for appointment in the civil service for three years 
 following conviction. 

    Subd. 3.    Violations; position vacated.  Intentional 
 violation of section 43A.37 may be cause for disciplinary action 
 and conviction of an employee in the classified service under 
 section 43A.32 shall render the position vacant. 

    HIST: 1981 c 210 s 39; 1982 c 560 s 36 

  43A.40 Repealed, 1999 c 182 s 20 

  43A.41 Repealed, 1999 c 182 s 20 

  43A.42 Repealed, 1999 c 182 s 20 

     43A.421 Supported work program. 

    A total of 50 full-time positions within agencies of state 
 government may be selected for inclusion for a supported work 
 program for persons with severe disabilities.  A full-time 
 position may be shared by up to three persons with severe 
 disabilities and their job coach.  The job coach is not a state 
 employee within the scope of section 43A.02, subdivision 21, or 
 179A.03, subdivision 14, unless the job coach holds another 
 position within the scope of section 43A.02, subdivision 21, or 
 179A.03, subdivision 14. 

    HIST: 1987 c 232 s 3; 1988 c 667 s 20; 1999 c 182 s 17 

    43A.43 Subdivision 1. MS 1982 Repealed, 1983 c 145 
 s 9 

    Subd. 2. MS 1998 Repealed, 1999 c 182 s 20 

  43A.44 Repealed, 1999 c 182 s 20 

  43A.45 Repealed, 1999 c 182 s 20 

  43A.46 Repealed, 1999 c 182 s 20 

  43A.465 Repealed, 1999 c 182 s 20 

  43A.47 Repealed, 1996 c 310 s 1 

     43A.48 Pretax expense accounts. 

    The commissioner of employee relations may use FICA savings 
 generated from the dependent care and medical and dental expense 
 account programs to pay for the administrative costs of the 
 programs and to pay for unfunded liabilities in the medical and 
 dental expense account program.  Forfeited balances from the 
 programs may be used to pay for the administrative costs of the 
 programs. 

    HIST: 1991 c 345 art 1 s 69; 1992 c 375 s 1