2007 Minnesota Statutes

CHAPTER 43A. DEPARTMENT OF EMPLOYEE RELATIONS

43A.001 APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
State agencies shall use the terminology changes specified in Laws 2005, chapter 56, section
1, when printed material and signage are replaced and new printed material and signage are
obtained. State agencies do not have to replace existing printed material and signage to comply
with Laws 2005, chapter 56, sections 1 and 2. Language changes made according to Laws 2005,
chapter 56, sections 1 and 2, shall not expand or exclude eligibility to services.
History: 2005 c 56 s 3

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 363A 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.
History: 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 satisfied the minimum
requirements for application established by the commissioner.
    Subd. 4a. Applicant pool. "Applicant pool" means those applicants who satisfy any limits
on consideration for the position under section 43A.10, subdivision 6a, and who have been
determined to meet the minimum qualifications for a vacant position.
    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 a finalist pool 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.[Repealed, 2004 c 207 s 31]
    Subd. 8.[Repealed, 2004 c 207 s 31]
    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 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.[Repealed, 2004 c 207 s 31]
    Subd. 16.[Repealed, 2004 c 207 s 31]
    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.[Repealed, 2004 c 207 s 31]
    Subd. 20.[Repealed, 2004 c 207 s 31]
    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. 22b. Finalist pool. "Finalist pool" means those members of the applicant pool who
have been determined to best meet all the qualifications for a vacant position and who may
be legally appointed to the position.
    Subd. 22c. Goal unit. "Goal unit" means, for the purposes of affirmative action, the group
of jobs in an agency or agency subdivision assigned to one of the federal Equal Employment
Opportunity (EEO) occupation categories applicable to state employment.
    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 a list of former permanent or probationary
employees of a job class who are eligible to be recalled to that class under the provisions of a
collective bargaining agreement or plan established under section 43A.18.
    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 selection 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 a finalist pool, of an applicant who has demonstrated through a selection process that
the applicant 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.[Repealed, 2004 c 207 s 31]
    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.
History: 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; 2004 c 207 s 1-8; 2004 c 287 s 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.
History: 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 selection procedures and for making appointments of individuals
who are not employees of the civil service;
(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
processes and requirements for agencies to publicize job openings and consider applicants who
are referred or nominate themselves, conduct of selection procedures limited to employees,
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 eight 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.
    Subd. 12. Total compensation reporting. (a) The commissioner, in consultation with the
commissioner of finance, shall report to the governor and the legislature by January 15 each year
on executive branch employee salary and benefits. The purpose of the report is to assist in effective
long-range planning and to provide data necessary to compute annual and biennial costs related to
the state workforce. The report must use data available in the biennial budget system and other
necessary sources. The report also must be made available to the public in an electronic format.
(b) The report must be organized by agency. The report must list the salary or hourly rate of
pay for each agency employee. The report may list the employee by name or by an identification
number.
(c) The report must also include an estimate of the average cost to the state of providing
insurance and other benefits to a state employee.
(d) The report must also include the number of employees by agency or department,
separated by retirement plan membership, and for each plan, the total compensation, the total
employee retirement plan contribution, and the total employer retirement plan contributions.
    Subd. 13. Combined charities campaign. (a) The commissioner shall administer the state
employee combined charities campaign. This duty includes registration of combined charitable
organizations under section 43A.50, and coordination of the process under which state employees
contribute to combined charitable organizations.
(b) The commissioner, in consultation with other commissioners, shall appoint a voluntary
board of state employees to oversee the conduct of an annual combined charities campaign.
The board must, to the extent possible, represent a cross-section of state employee groups and
geographic areas where state employees are located. The board shall provide direction to the
commissioner's employee assigned to administer the annual campaign.
History: 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;
2001 c 70 s 2; 1Sp2001 c 10 art 2 s 49,50; 2004 c 207 s 9,10; 2006 c 277 art 5 s 1; 2007 c 101 s 2

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.
History: 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.
History: 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.
History: 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) This section does not apply to an agency's use of inmates pursuant to sections 241.20 to
241.23 or to an agency's use of persons required by a court to provide:
(1) community service; or
(2) conservation or maintenance services on lands under the jurisdiction and control of
the state.
History: 1997 c 202 art 2 s 32; 1999 c 250 art 1 s 71; 1Sp2001 c 10 art 2 s 51; 2005 c
136 art 13 s 2

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; administration
of systems for employee selection; 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.
History: 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; 2004 c 207 s 11

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 the units provided in clauses (9), (10),
and (11) of 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.
History: 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; 2001 c 133 s 1

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.
History: 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
developmental disabilities.
History: 1987 c 232 s 1; 2005 c 56 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 and state auditor, 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) 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;
    (15) student workers;
    (16) executive directors or executive secretaries appointed by and reporting to any
policy-making board or commission established by statute;
    (17) employees unclassified pursuant to other statutory authority;
    (18) intermittent help employed by the commissioner of agriculture to perform duties relating
to pesticides, fertilizer, and seed regulation;
    (19) the administrators and the deputy administrators at the State Academies for the Deaf
and the Blind; and
    (20) chief executive officers in the Department of Human Services.
    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; Education; Employee
Relations; Employment and Economic Development; Explore Minnesota Tourism; Finance;
Health; Human Rights; Labor and Industry; Natural Resources; Public Safety; 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 Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State
Colleges and Universities; the Minnesota Office of Higher Education; 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.
History: 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; 2001 c 70 s 3; 1Sp2001 c 4 art 6 s 13; 2003 c 112 art 2 s 50; 2003 c 130 s 12; 1Sp2003
c 4 s 1; 2005 c 107 art 2 s 60; 1Sp2005 c 1 art 2 s 161; 2006 c 260 art 4 s 1; 2006 c 281 art 4 s 1

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.
History: 1981 c 210 s 9

43A.10 SELECTION PROCESS; ELIGIBILITY TO COMPETE.
    Subdivision 1. General. Entrance to the classified service shall be through successful
competition in a selection process and appointment from a finalist pool except as provided in
section 43A.15 or other law and for employees in a bargaining unit as defined in section 179A.10,
appointments shall be subject to applicable provisions of collective bargaining agreements.
    Subd. 2. Selection criteria and methods. All selection criteria and methods for filling
positions in the classified service shall be job related and designed to fairly assess ability to
perform the duties of the vacant position for which the selection process is conducted.
    Subd. 2a. Application requirements. The commissioner shall establish and maintain a
database of applicants for state employment. The commissioner shall establish, publicize, and
enforce minimum requirements for application. The appointing authority shall enforce the
established minimum requirements for application for individuals who express interest directly
to the appointing authority.
    Subd. 2b. Term of eligibility. The term of eligibility on layoff lists shall be as provided in
the collective bargaining agreement or plan established under section 43A.18, under which the
layoff list was established. The term of eligibility for all other applicants shall be determined by
the commissioner but shall not be less than six months.
    Subd. 3. Facilities furnished for selection procedures. 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 selection
procedures. 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 selection procedures, provided that the costs were
incurred due solely to the selection procedure.
    Subd. 4. Applicants; expenses. The commissioner or an appointing authority may pay travel
expenses incurred by applicants invited for oral examinations or employment interviews in the
manner and amounts authorized by the commissioner.
    Subd. 5.[Repealed by amendment, 2004 c 207 s 12]
    Subd. 6.[Repealed by amendment, 2004 c 207 s 12]
    Subd. 6a. Limited consideration of applicants. The commissioner may limit consideration
to only those applicants who have indicated availability for the geographic location, employment
condition, travel status, and job grouping of the vacant position and who have indicated possession
of the minimum qualifications for the vacant position. In addition, the commissioner may limit
consideration to only those applicants who are:
(1) employees on a layoff list for the job class of the position. The appointing authority shall
consider those names as provided in collective bargaining agreements and plans established
under section 43A.18;
(2) current employees of the civil service, the Minnesota State Retirement System, the Public
Employees Retirement Association, and the Teacher's Retirement Association, or employees of
one or more agencies or organizational units under them;
(3) former permanent and probationary employees of the job class who separated from the
class within the past four years and have indicated availability for reinstatement to the class; or
(4) current permanent and probationary employees who have indicated availability for
transfer or demotion to the job class.
    Subd. 6b. Refusal to consider an applicant. The commissioner may remove from
consideration any applicant who:
(1) has been dismissed for cause from the public service;
(2) has directly or indirectly given or promised to give anything of value to any person in
connection with the selection process, appointment, or proposed appointment;
(3) has made a false statement of any material fact, or practiced or attempted to practice any
deception or fraud in the application or selection process or in securing eligibility or appointment;
or
(4) has a prior conviction of a crime directly related to the vacant position provided the
refusal is consistent with the requirements and procedures of chapter 364.
When the commissioner refuses to consider an applicant, the commissioner shall, upon
request of the applicant, furnish the applicant a statement of the reasons for the refusal. Upon
receipt of relevant information, the commissioner shall reconsider the refusal and may restore the
applicant to consideration.
    Subd. 7. Selection process accommodations. Upon request, the commissioner or appointing
authority shall provide selection process accommodations to an applicant with a disability that
does not prevent performance of the duties of the position. The accommodations must provide
an opportunity to fairly assess the ability of the applicant to perform the duties of the position
notwithstanding the disability but must preserve, to the extent feasible, the validity of the selection
process and equitable comparison of results with the results of competitors without disabilities.
    Subd. 8.[Repealed by amendment, 2004 c 207 s 12]
History: 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; 2004 c 207 s 12; 2005 c 144 s 1

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.[Repealed, 2005 c 95 s 1; 2005 c 156 art 4 s 12]
    Subd. 3.[Repealed, 2004 c 207 s 31]
    Subd. 4.[Repealed, 2004 c 207 s 31]
    Subd. 5. Disabled veteran; definitions. For the purpose of the preference to be used
in securing appointment from an applicant pool, "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.
    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. Applicants who meet the minimum qualifications for a vacant
position and claim disabled veteran's preference shall be listed in the applicant pool ahead of all
other applicants. Applicants who meet the minimum qualifications for a vacant position and claim
nondisabled veteran's preference shall be listed in the applicant pool after those claiming disabled
veteran's preference and ahead of nonveterans.
    Subd. 8. Notification. The commissioner or an appointing authority, when notifying
applicants that they have been accepted into the state's selection process, shall notify applicants
that they may elect to use veteran's preference.
    Subd. 9. Rejection; explanation. If the appointing authority rejects a member of the finalist
pool who has claimed veteran's preference, the appointing authority shall notify the finalist in
writing of the reasons for the rejection.
History: 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; 2004 c 207 s 13-16

43A.12 [Repealed, 2004 c 207 s 31]

43A.121 RANKING OF THE APPLICANT POOL.
Applicants referred from a layoff list shall be ranked as provided in the collective bargaining
agreement or plan established under section 43A.18, under which the layoff list was established.
All other names in an applicant pool shall be ranked according to the veteran's preference
provisions of section 43A.11, subdivision 7, and then in descending order of the number of
skill matches for the vacant position. If any ties in rank remain, those names shall appear in
alphabetical order.
History: 2004 c 207 s 17

43A.13    Subdivision 1.[Repealed, 2004 c 207 s 31]
    Subd. 2.[Repealed, 2004 c 207 s 31]
    Subd. 3.[Repealed, 2004 c 207 s 31]
    Subd. 4.[Repealed, 2004 c 207 s 31]
    Subd. 5.[Repealed, 2004 c 207 s 31]
    Subd. 6.[Repealed, 2004 c 207 s 31]
    Subd. 7.[Repealed, 2004 c 207 s 31]
    Subd. 8.[Repealed, 2004 c 207 s 31]
    Subd. 9.[Repealed, 1999 c 182 s 20]

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.
History: 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 a finalist pool only as provided in this section or other law, provided that
appointments made pursuant to subdivisions 5, 6, 10, 12, and 13 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 45 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 appointing authority may search the employment database for
qualified applicants or, when necessary, the commissioner 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 no applicant is suitable or available for
appointment and the person to be provisionally appointed is qualified in all respects except for
completion of a licensure or certification requirement.
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 where there is a lack of applicants and the
provisional appointee is continuing to work to complete the licensure or certification requirement.
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 and
has completed the licensure or certification requirement.
    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 selection process 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.[Repealed, 2004 c 207 s 31]
    Subd. 9.[Repealed, 2004 c 207 s 31]
    Subd. 10. Routine service. 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.
    Subd. 11.[Repealed, 2004 c 207 s 31]
    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 process and appointment. The commissioner shall
establish qualifying procedures for applicants whose disabilities are of such a severe nature that
the applicants are unable to demonstrate their abilities in the selection process. The qualifying
procedures must consist of up to 700 hours on-the-job trial work experience 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 selection procedure. This on-the-job demonstration process must
be limited to applicants for whom there is no reasonable accommodation in the selection process.
The commissioner may authorize the probationary appointment of an applicant based on the
request of the appointing authority that documents that the applicant 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 363A.
    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. The four-year limitation does not apply to former permanent or probationary employees
of the class who are receiving disability benefits under a state retirement plan.
History: 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; 2004 c 207 s 18-24; 2005 c 144 s 2

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, 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.
History: 1981 c 210 s 16; 1984 c 462 s 27; 2004 c 207 s 25

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 and doctors of dental surgery. 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. (a) The salary and the value of all other
forms of compensation of a person employed by a political subdivision of this state, excluding a
school district, or employed under section 422A.03 may not exceed 110 percent of the salary of
the governor as set under section 15A.082, except as provided in this subdivision. For purposes of
this subdivision, "political subdivision of this state" includes a statutory or home rule charter city,
county, town, metropolitan or regional agency, or other political subdivision, but does not include
a hospital, clinic, or health maintenance organization owned by such a governmental unit.
(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in January. The
limit shall equal the limit for the prior year increased by the percentage increase, if any, in the
Consumer Price Index for all-urban consumers from October of the second prior year to October
of the immediately prior year.
(c) 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.
(d) 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.
(e) 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 made no recommendation. If the commissioner grants or
granted an increase under this paragraph, the new limitation shall be adjusted beginning in August
2005 and in each subsequent calendar year in January by the percentage increase equal to the
percentage increase, if any, in the Consumer Price Index for all-urban consumers from October of
the second prior year to October of the immediately prior year.
    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]
History: 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; 1Sp2003 c 1 art 2 s 60; 2005 c 169 s 1; 2006 c 282 art 16 s 1

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. 3b. State Board of Investment plan. Total compensation for unclassified positions
not covered by a collective bargaining agreement under section 11A.04 in the State Board
of Investment must be determined by the State Board of Investment. Before submitting a
compensation plan to the legislature and the Legislative Coordinating Commission, the State
Board of Investment 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 Coordinating Commission 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,
and state auditor must be determined by the governor, lieutenant governor, attorney general,
secretary of state, and state auditor, respectively.
(c) Total compensation for unclassified positions not covered by a collective bargaining
agreement in the Minnesota Office of Higher Education must be determined by the Minnesota
Office of Higher Education.
    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.[Repealed, 1Sp2001 c 10 art 2 s 102]
    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.
History: 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; 2003 c 112 art 2 s 50;
2005 c 55 s 4; 2005 c 107 art 2 s 60

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.
History: 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.
History: 1996 c 425 s 6

43A.182 [Repealed, 1997 c 97 s 20]

43A.183 PAYMENT OF SALARY DIFFERENTIAL TO RESERVE FORCES WHO
REPORT FOR ACTIVE SERVICE.
    Subdivision 1. Payment required. Each agency head shall pay to each eligible member an
amount equal to the person's salary differential for each month or portion of month that the
person is ordered to serve in active service.
This payment may be made only to a person for whom the amount in subdivision 2,
paragraph (b), clause (1), is greater than the amount in subdivision 2, paragraph (b), clause (2).
Payments must be made at the intervals at which the member received pay as a state employee,
except that any back pay due under this section may be paid as a lump sum. Payment under this
section must not extend beyond four years from the date the employee reported for active service,
plus any additional time the employee may be legally required to serve. An eligible member
may apply for the salary differential benefits authorized under this section prior to, during, or
following the person's active service on or after May 29, 2003.
    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
(b) "Salary differential" means the difference between:
(1) the person's monthly total gross earnings as an active state employee, excluding any
overtime pay received but including all other earnings, averaged over the last three full months
of the person's active state employment prior to reporting to active service, and including any
additional salary or earnings adjustments that the person would have received at any time during
the person's authorized leave from state employment had the person been serving as an active
state employee during that time; and
(2) the person's monthly base pay in active service.
(c) "Eligible member" means:
(1) any member of the National Guard or other reserve component of the United States
armed forces who was an employee of the state of Minnesota at the time the member took military
leave under section 192.261 to report for active military service; and
(2) any member of any other nonmilitary reserve component of the uniformed services of
the United States who was an employee of Minnesota at the time the member took properly
authorized leave from state employment under substantially comparable federal or state authority
ordering the person to report for federal or state active service.
(d) "State employee" means an employee of the executive, judicial, or legislative branch of
state government or an employee of the Minnesota State Retirement System, the Public Employee
Retirement Association, or the Teachers Retirement Association.
(e) "Active service" has the meaning given in section 190.05, subdivision 5, for military
members, and includes substantially comparable service for reserve members of other nonmilitary
components of the uniformed services of the United States, but excludes service performed
exclusively for purposes of:
(1) basic training, advanced individual training, annual training, and periodic inactive duty
training;
(2) special training periodically made available to reserve members;
(3) service performed in accordance with section 190.08, subdivision 3; and
(4) service performed as part of the active guard/reserve program pursuant to United States
Code, title 32, section 502(f), or other applicable authority, as well as substantially comparable
service by members of other nonmilitary components of the uniformed services of the United
States.
    Subd. 3. Health and dental coverage. The agency head must continue the employee's
enrollment in health and dental coverage, and the employer contribution toward that coverage,
until the employee reports for active service. If the employee had elected dependent coverage for
health or dental coverage as of the time that the employee reported for active service, the agency
head must offer the employee the option to continue the dependent coverage at the employee's
own expense. The agency head must permit the employee to continue participating in any pretax
account in which the employee participated when the employee reported for active service, to
the extent of employee pay available for that purpose. An employee who has opted to continue a
permitted benefit may cancel that continuation at any time during the person's authorized leave
from state employment by written notification from the employee, or from the employee's
designated attorney-in-fact under a power of attorney, to the agency head or the commissioner of
employee relations.
    Subd. 4. Notice. The agency head must periodically inform in writing all agency personnel
who are or may be members of the reserve component of the United States armed forces or any
other nonmilitary reserve component of the uniformed services of the United States of the benefits
provided under this section and of the procedures relevant to securing those benefits, including,
but not limited to, any procedures regarding the continuation and discontinuation of any optional
deductions. It will suffice to meet this requirement if the agency head posts the information on the
agency Web site in a highly recognizable manner that can be easily found and understood by the
employees to whom it might apply.
Upon being ordered to active service, the employee must notify the agency head of
that order in a timely manner and must provide to the agency head the name of and contact
information for the employee's designated attorney-in-fact under a power of attorney. Prior to
the commencement of the employee's authorized leave from state employment, the agency head
must ensure the agency's receipt of that information and immediately convey that information to
the commissioners of finance and employee relations, including any subsequent change in that
designation by the employee. When communicating with the employee during the person's leave,
the agency head and the commissioners of finance and employee relations must immediately
provide a copy of the communication to the employee's designated attorney-in-fact. Those
officials must also honor requests for information or other appropriate directives from that
designee on behalf of the employee during the employee's leave.
    Subd. 5. Procedures. The commissioners of employee relations and finance shall adopt
procedures required to implement this section. The procedures are exempt from chapter 14.
    Subd. 6. Exclusion. This section does not apply to a judge, legislator, or constitutional
officer of the executive branch.
History: 2003 c 123 s 1; 2005 c 35 s 1; 2006 c 273 s 1

NOTE: This section applies to state employees serving in active military service on or after
May 29, 2003. Laws 2005, chapter 35, section 1.

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.
History: 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 establish statewide affirmative action goals for each of the
federal Equal Employment Opportunity (EEO) occupational categories applicable to state
employment, using at least the following factors:
(1) the percentage of members of each protected class in the recruiting area population
who have the necessary skills; and
(2) the availability for promotion or transfer of current employees who are members of
protected classes.
(c) The commissioner may use any of the following factors in addition to the factors required
under paragraph (b):
(1) the extent of unemployment of members of protected classes in the recruiting area
population;
(2) the existence of training programs in needed skill areas offered by employing agencies
and other institutions; and
(3) the expected number of available positions to be filled.
(d) 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 363A.
History: 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; 2004 c 287 s 2

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 sections 363A.08 to 363A.19, and 363A.28, subdivision
10 , 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
Coordinating Commission. The report must include noncompetitive appointments made under
section 43A.08, subdivision 2a, or 43A.15, subdivisions 3 to 7, 10, and 12, 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.
History: 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; 2004 c 207
s 26; 2007 c 35 s 1

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.
History: 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]
History: 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.
History: 1981 c 210 s 22; 1999 c 250 art 1 s 72

43A.23 CONTRACTING AUTHORITY.
    Subdivision 1. General. (a) The commissioner is authorized to request proposals or to
negotiate and to enter into contracts with parties which in the judgment of the commissioner are
best qualified to provide service to the benefit plans. Contracts entered into are not subject to the
requirements of sections 16C.16 to 16C.19. The commissioner may negotiate premium rates and
coverage. 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. A carrier licensed under chapter 62A is
exempt from the taxes imposed by chapter 297I on premiums paid to it by the state.
    (b) 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.
    (c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered
under sections 43A.22 to 43A.30 is not required to extend dependent coverage to an eligible
employee's unmarried child under the age of 25 to the full extent required under chapters 62A
and 62L. Dependent coverage must, at a minimum, extend to an eligible employee's unmarried
child who is under the age of 19 or an unmarried child under the age of 25 who is a full-time
student. The definition of "full-time student" for purposes of this paragraph includes any student
who by reason of illness, injury, or physical or mental disability as documented by a physician is
unable to carry what the educational institution considers a full-time course load so long as the
student's course load is at least 60 percent of what otherwise is considered by the institution to be
a full-time course load. Any notice regarding termination of coverage due to attainment of the
limiting age must include information about this definition of "full-time student."
    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.
History: 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; 2005 c 156 art 3 s 1; 2007 c 35 s 2; 2007 c 147 art 12 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 supporting organizations of Minnesota Technology, Inc., established after
July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting organization.
    Subd. 3.[Repealed, 1993 c 122 s 7]
History: 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; 2003 c 128 art 15 s 2; 1Sp2003 c 14 art 7 s 88

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.
History: 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]
History: 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.
History: 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.
History: 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 assessment, referral, and training 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.
History: 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; 2004 c 143 s 1

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.
    Subd. 6. Dissemination of information. The commissioner may electronically transmit to
active employees all information necessary to administer sections 43A.22 to 43A.30, including,
but not limited to, information necessary for open enrollment elections. The commissioner must
provide notification that the information will be electronically transmitted.
History: 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; 2005 c 144 s 3

43A.311 DRUG PURCHASING PROGRAM.
The commissioner of employee relations, in conjunction with the commissioner of
human services and other state agencies, shall evaluate whether participation in a multistate or
multiagency drug purchasing program can reduce costs or improve the operations of the drug
benefit programs administered by the department and other state agencies. The commissioner
and other state agencies may enter into a contract with a vendor or other states for purposes of
participating in a multistate or multiagency drug purchasing program.
History: 1Sp2003 c 1 art 2 s 61

43A.312 CENTER FOR HEALTH CARE PURCHASING IMPROVEMENT.
    Subdivision 1. Establishment; administration. The commissioner of health shall establish
and administer the Center for Health Care Purchasing Improvement as an administrative unit
within the Department of Health. The Center for Health Care Purchasing Improvement shall
support the state in its efforts to be a more prudent and efficient purchaser of quality health care
services. The center shall aid the state in developing and using more common strategies and
approaches for health care performance measurement and health care purchasing. The common
strategies and approaches shall promote greater transparency of health care costs and quality, and
greater accountability for health care results and improvement. The center shall also identify
barriers to more efficient, effective, quality health care and options for overcoming the barriers.
    Subd. 2. Staffing; duties; scope. (a) The commissioner of health may appoint a director, and
up to three additional senior-level staff or codirectors, and other staff as needed who are under the
direction of the commissioner. The staff of the center are in the unclassified service.
(b) With the authorization of the commissioner of health, and in consultation or interagency
agreement with the appropriate commissioners of state agencies, the director, or codirectors, may:
(1) initiate projects to develop plan designs for state health care purchasing;
(2) require reports or surveys to evaluate the performance of current health care purchasing
strategies;
(3) calculate fiscal impacts, including net savings and return on investment, of health care
purchasing strategies and initiatives;
(4) conduct policy audits of state programs to measure conformity to state statute or other
purchasing initiatives or objectives;
(5) support the Administrative Uniformity Committee under section 62J.50 and other relevant
groups or activities to advance agreement on health care administrative process streamlining;
(6) consult with the Health Economics Unit of the Department of Health regarding reports
and assessments of the health care marketplace;
(7) consult with the Department of Commerce regarding health care regulatory issues and
legislative initiatives;
(8) work with appropriate Department of Human Services staff and the Centers for Medicare
and Medicaid Services to address federal requirements and conformity issues for health care
purchasing;
(9) assist the Minnesota Comprehensive Health Association in health care purchasing
strategies;
(10) convene medical directors of agencies engaged in health care purchasing for advice,
collaboration, and exploring possible synergies;
(11) contact and participate with other relevant health care task forces, study activities, and
similar efforts with regard to health care performance measurement and performance-based
purchasing; and
(12) assist in seeking external funding through appropriate grants or other funding
opportunities and may administer grants and externally funded projects.
    Subd. 3. Report. The commissioner of health must report annually to the legislature and
the governor on the operations, activities, and impacts of the center. The report must be posted
on the Department of Health Web site and must be available to the public. The report must
include a description of the state's efforts to develop and use more common strategies for health
care performance measurement and health care purchasing. The report must also include an
assessment of the impacts of these efforts, especially in promoting greater transparency of health
care costs and quality, and greater accountability for health care results and improvement.
History: 2006 c 282 art 14 s 10; 2006 c 282 art 14 s 10; 2007 c 148 art 2 s 83

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. The committee continues to exist while the program remains in operation.
    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.
History: 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; 2001 c 161 s 11

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.49 and 72A.07, the program may
use, and pay referral fees, commissions, or other compensation to, agents licensed as insurance
producers 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.
History: 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; 2001 c 117 art 2 s 2

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) Eligible person. "Eligible person" means:
    (1) a person who is eligible for insurance and benefits under section 43A.24;
    (2) a person who at the time of separation from employment was eligible to purchase
coverage at personal expense under section 43A.27, subdivision 3, regardless of whether the
person elected to purchase this coverage;
    (3) a spouse 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); or
    (4) a parent of a person described in clause (1), regardless of the enrollment status in the
program of the person described in clause (1).
    (c) Program. "Program" means the statewide public employees long-term care insurance
program created under subdivision 2.
    (d) 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.[Repealed, 2007 c 133 art 2 s 13]
    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.
History: 1999 c 250 art 1 s 78; 2001 c 94 s 1; 2007 c 133 art 2 s 5

43A.319 EMPLOYEE ASSISTANCE PROGRAM.
The commissioner shall provide an employee assistance program of training, assessment,
counseling, and referral services for state employees and their dependents.
History: 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; 2004 c 143 s 2

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.
History: 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.
History: 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 Bureau
of Mediation Services 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) Within ten days of receipt of the employee's written notice of appeal, the commissioner of
the Bureau of Mediation Services shall provide both parties with a list of potential arbitrators
according to the rules of the Bureau of Mediation Services to hear the appeal. The process of
selecting the arbitrator from the list shall be determined by the plan.
The hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services. If
the arbitrator 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 arbitrator finds that
there exists sufficient grounds for institution of the appointing authority's action but the hearing
record establishes extenuating circumstances, the arbitrator may reinstate the employee, with full,
partial, or no pay, or may modify the appointing authority's action. The appointing authority shall
bear the costs of the arbitrator for hearings provided for in this section.
    Subd. 4.[Repealed, 2005 c 114 s 3]
History: 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; 2005 c 114 s 1

43A.34 RETIREMENT.
    Subd. 1.[Repealed, 2006 c 271 art 3 s 46]
    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 to
retire from employment in the covered correctional position upon reaching the age of 55 years.
    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.
History: 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; 2005 c 114 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.
History: 1998 c 351 s 3

43A.346 POSTRETIREMENT OPTION.
    Subdivision 1. Definition. For purposes of this section, "state employee" means a person
currently occupying a civil service position in the executive or legislative branch of state
government, the Minnesota State Retirement System, the Public Employees Retirement
Association, or the Office of the Legislative Auditor, or a person employed by the Metropolitan
Council.
    Subd. 2. Eligibility. (a) This section applies to a state or Metropolitan Council employee who:
    (1) for at least the five years immediately preceding separation under clause (2), has been
regularly scheduled to work 1,044 or more hours per year in a position covered by a pension plan
administered by the Minnesota State Retirement System or the Public Employees Retirement
Association;
    (2) terminates state or Metropolitan Council employment;
    (3) at the time of termination under clause (2), meets the age and service requirements
necessary to receive an unreduced retirement annuity from the plan and satisfies requirements
for the commencement of the retirement annuity or, for an employee under the unclassified
employees retirement plan, meets the age and service requirements necessary to receive an
unreduced retirement annuity from the plan and satisfies requirements for the commencement
of the retirement annuity or elects a lump-sum payment; and
    (4) agrees to accept a postretirement option position with the same or a different appointing
authority, working a reduced schedule that is both (i) a reduction of at least 25 percent from the
employee's number of regularly scheduled work hours; and (ii) 1,044 hours or less in state or
Metropolitan Council service.
    (b) For purposes of this section, an unreduced retirement annuity includes a retirement
annuity computed under a provision of law which permits retirement, without application of an
earlier retirement reduction factor, whenever age plus years of allowable service total at least 90.
    Subd. 3. Unclassified service. Notwithstanding any law to the contrary, state postretirement
option positions shall be in the unclassified service but shall not be covered by the Minnesota
State Retirement System unclassified employees plan.
    Subd. 4. Annuity reduction not applicable. Notwithstanding any law to the contrary, when
an eligible state employee in a postretirement option position under this section commences
receipt of the annuity, the provisions of section 352.115, subdivision 10, or 353.37 governing
annuities of reemployed annuitants, shall not apply for the duration of employment in the position.
    Subd. 5. Appointing authority discretion. The appointing authority has sole discretion to
determine if and the extent to which a postretirement option position under this section is available
to a state employee. Any offer of such a position must be made in writing to the employee by
the appointing authority on a form prescribed by the Department of Employee Relations and
the Minnesota State Retirement System or the Public Employees Retirement Association. The
appointing authority may not require a person to waive any rights under a collective bargaining
agreement or unrepresented employee compensation plan as a condition of participation.
    Subd. 6. Duration. Postretirement option employment shall be for an initial period not to
exceed one year. During that period, the appointing authority may not modify the conditions
specified in the written offer without the employee's agreement, except as required by law or by
the collective bargaining agreement or compensation plan applicable to the employee. At the end
of the initial period, the appointing authority has sole discretion to determine if the offer of a
postretirement option position will be renewed, renewed with modifications, or terminated.
Postretirement option employment may be renewed for periods of up to one year, not to exceed a
total duration of five years. No person shall be employed in one or a combination of postretirement
option positions under this section for a total of more than five years.
    Subd. 7. Copy to fund. The appointing authority shall provide the Minnesota State
Retirement System or the Public Employees Retirement Association with a copy of the offer, the
employee's acceptance of the terms, and any subsequent renewal agreement.
    Subd. 8. No service credit. Notwithstanding any law to the contrary, a person may not earn
service credit in the Minnesota State Retirement System or the Public Employees Retirement
Association for employment covered under this section, and employer contributions and payroll
deductions for the retirement fund must not be made based on earnings of a person working
under this section. No change shall be made to a monthly annuity or retirement allowance based
on employment under this section.
    Subd. 9. Insurance contribution. Notwithstanding any law to the contrary, the appointing
authority must make an employer insurance contribution for a person who is employed in a
postretirement option position under this section and who is not receiving any other state-paid
or Metropolitan Council-paid employer insurance contribution. The amount of the contribution
must be equal to the percent time worked in the postretirement option position (hours scheduled
to be worked annually divided by 2,088) times 1.5 times the full employer contribution for
employee-only health and dental coverage. The appointing authority must contribute that amount
to a health reimbursement arrangement.
    Subd. 10. Subsequent employment. If a person has been in a postretirement option position
and accepts any other position in state or Metropolitan Council-paid service, in the subsequent
state or Metropolitan Council-paid employment the person may not earn service credit in the
Minnesota State Retirement System or Public Employees Retirement Association, no employer
contributions or payroll deductions for the retirement fund shall be made, and the provisions of
section 352.115, subdivision 10, or section 353.37, shall apply.
History: 2005 c 156 art 3 s 2; 2007 c 134 art 11 s 4,5; 2007 c 148 art 2 s 45

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.
History: 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 provide
recruiting assistance and make the applicant database available to appointing authorities to use in
making appointments to positions in the unclassified service.
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.
History: 1981 c 210 s 36; 1997 c 79 s 18,19; 2004 c 207 s 27

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.
History: 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.
History: 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.
History: 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, selection process, 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 exercising rights 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.
History: 1981 c 210 s 39; 1982 c 560 s 36; 2004 c 207 s 28

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

43A.43    Subdivision 1.[Repealed, 1983 c 145 s 9]
    Subd. 2.[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.
History: 1991 c 345 art 1 s 69; 1992 c 375 s 1

43A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.
(a) Appointing authorities in state government may allow each employee to take unpaid
leaves of absence for up to 1,040 hours between June 1, 2007, and June 30, 2009. The 1,040
hour limit replaces, and is not in addition to, limits set in prior laws. Each appointing authority
approving such a leave shall allow the employee to continue accruing vacation and sick leave,
be eligible for paid holidays and insurance benefits, accrue seniority, and accrue service credit
and credited salary in the state retirement plans as if the employee had actually been employed
during the time of leave. An employee covered by the unclassified plan may voluntarily make
the employee contributions to the unclassified plan during the leave of absence. If the employee
makes these contributions, the appointing authority must make the employer contribution. If the
leave of absence is for one full pay period or longer, any holiday pay shall be included in the first
payroll warrant after return from the leave of absence. The appointing authority shall attempt
to grant requests for the unpaid leaves of absence consistent with the need to continue efficient
operation of the agency. However, each appointing authority shall retain discretion to grant or
refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject to the
applicable provisions of collective bargaining agreements and compensation plans.
(b) To receive eligible service credit and credited salary in a defined benefit plan, the member
shall pay an amount equal to the applicable employee contribution rates. If an employee pays the
employee contribution for the period of the leave under this section, the appointing authority must
pay the employer contribution. The appointing authority may, at its discretion, pay the employee
contributions. Contributions must be made in a time and manner prescribed by the executive
director of the Minnesota State Retirement Association.
History: 1Sp2003 c 1 art 2 s 130; 2007 c 35 s 3

43A.50 STATE EMPLOYEE COMBINED CHARITIES CAMPAIGN REGISTRATION.
    Subdivision 1. Definitions. (a) As used in this section, the following terms have the
meanings given them.
(b) "Registered combined charitable organization" means a federated funding organization:
(1) which is tax exempt under section 501(c)3 of the Internal Revenue Code of 1986,
as amended through December 31, 1992 (hereinafter "Internal Revenue Code"), and to which
contributions are deductible under section 170 of the Internal Revenue Code;
(2) which is properly registered with the attorney general of Minnesota to solicit
contributions in Minnesota;
(3) which secures funds through the state employee combined charities campaign for
distribution to 14 or more affiliated agencies, each of which must devote substantially all of
its activities to providing health, welfare, social, or other services that benefit individuals in
Minnesota and contiguous counties;
(4) which is governed either by an independent, voluntary board and at least 90 percent of
the directors of the governing board live or work in Minnesota or contiguous counties or, if the
charitable agencies are solely educational institutions which meet the requirements of paragraph
(c), by a national board of directors that has a local advisory board composed of members who
live or work in Minnesota or contiguous counties;
(5) which expended no more than 30 percent of total contributions received in the
organization's accounting year last reported for management and general costs and fund-raising
costs;
(6) which distributed at least 70 percent of total contributions received in the organization's
accounting year last reported to affiliated agencies, programs, and designated agencies in
Minnesota and contiguous counties or, if the charitable agencies are solely educational institutions
which meet the requirements of paragraph (c), distributes at least 70 percent of the state employee
combined charitable campaign income and revenue directly to Minnesota residents or schools
using established eligibility criteria; and
(7) which has been registered with the commissioner of employee relations in accordance
with this section.
Registered combined charitable organization includes a charitable organization organized
by Minnesota state employees and their exclusive representatives for the purpose of providing
grants to nonprofit agencies providing Minnesota residents with food or shelter if the charitable
organization meets the requirements of clauses (1), (2), (4), (5), (6), and (7).
(c) "Affiliated agency" means a charitable agency that is represented by a federation and has
an ongoing relationship with that federation which involves a review and monitoring process to
ensure financial, managerial, and programmatic responsibility.
(d) "Charitable agency" means a governmental agency or an organization (1) which is tax
exempt under section 501(c)3 of the Internal Revenue Code; (2) to which contributions are
deductible under section 170 of the Internal Revenue Code; and (3) which is in compliance
with the provisions of this chapter.
(e) "State employee combined charities campaign" means the annual state campaign that
allows a state employee to authorize payroll deduction for the employee's contribution to a
registered combined charitable organization, pursuant to section 16A.134.
(f) "Management and general costs" means costs as defined in section 309.50, subdivision 11.
(g) "Fund-raising costs" means costs as defined in section 309.50, subdivision 12.
(h) "Contiguous counties" means counties in Iowa, North Dakota, South Dakota, and
Wisconsin that share a border with Minnesota.
    Subd. 2. Registration. (a) A federated funding organization shall apply to the commissioner
of employee relations by March 1 in order to be eligible to participate in the state employee
combined charities campaign for that year.
(b) A federated funding organization must apply in the form prescribed by the commissioner
of employee relations and shall provide the following:
(1) assurance of tax exempt status for the federated funding organization and each of the
charitable agencies identified by the federated funding organization as an affiliated agency;
(2) assurance of proper registration with the attorney general of Minnesota to solicit
contributions in the state of Minnesota for the federated funding organization and each of the
charitable agencies identified by the federated funding organization as an affiliated agency. A
copy of the registration letter in effect at the time of application for the state employee combined
charities campaign must be available upon request;
(3) an affidavit signed by a duly constituted officer of the federated funding organization
attesting to the fact that the federated funding organization and its affiliated agencies are in
compliance with each of the provisions of this section;
(4) a list of the board of directors or local advisory board for the federated funding
organization which identifies the members who live or work in Minnesota and contiguous
counties;
(5) a list of the name and business address of each affiliated agency the federated funding
organization supports;
(6) a list of any related organizations, as defined in section 317A.011, subdivision 18;
(7) the total contributions received in the organization's accounting year last reported
and, from those contributions, the amounts expended by the federated funding organization
for management and general costs and for fund-raising costs and the amount distributed to the
affiliated agencies, programs, and designated agencies it supports; and
(8) a fee of $100, or ten percent of the funds raised from state employees in the previous
campaign, whichever is less. The fee for an organization which did not participate in the previous
year's state employee campaign is $100.
The commissioner may require submission of additional information needed to determine
compliance with the provisions of this chapter.
(c) The commissioner shall register or not register the application of an organization and
shall notify the organization of the decision by May 1. An organization whose application is
denied has ten calendar days after receiving notice of the denial to appeal the decision or file an
amended application correcting the deficiency. The commissioner shall register or not register
the organization within ten calendar days after receiving the appeal or amended application. If
registration is denied a second time, the organization may appeal within five calendar days after
receiving notice of the denial. A hearing shall be scheduled by the commissioner of employee
relations and shall be held within 15 calendar days after receiving notice of the appeal. The parties
may mutually agree to a later date. The provisions of chapter 14 do not apply to the hearing.
The hearing shall be conducted in a manner considered appropriate by the commissioner. The
commissioner shall make a determination within five calendar days after the hearing has been
completed.
(d) Only organizations that are approved may participate in the state employee combined
charities campaign for the year of approval and only contributions to approved organizations may
be deducted from an employee's pay pursuant to section 16A.134. By July 15, the commissioner
of employee relations shall notify the commissioner of finance in writing of the organizations
registered under this section.
    Subd. 3. Related organization. No two federated funding campaigns that are related
organizations, as defined in section 317A.011, subdivision 18, may participate simultaneously in
the state employee combined charities campaign.
    Subd. 4. Optional designations. A registered combined charitable organization may offer
the option of designating in writing that the amount deducted in section 16A.134 be designated
to any charitable agency whether or not the charitable agency receives funds from the single,
annual consolidated effort.
History: 2007 c 101 s 3