Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1997, 2nd Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 3-S.F.No. 2
An act relating to employment; regulating public
employee and official compensation; amending Minnesota
Statutes 1996, sections 3.855, subdivision 3; 15A.081,
subdivisions 7b, 8, and 9; 15A.083, subdivisions 5,
6a, and 7; 43A.17, subdivisions 1 and 3; 43A.18,
subdivisions 4 and 5; 85A.02, subdivision 5a; 298.22,
subdivision 1; and 349A.02, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapter 15A;
repealing Minnesota Statutes 1996, section 15A.081,
subdivisions 1 and 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 3.855,
subdivision 3, is amended to read:
Subd. 3. [OTHER SALARIES AND COMPENSATION PLANS.] The
commission shall also:
(1) review and approve, reject, or modify a plan for
compensation and terms and conditions of employment prepared and
submitted by the commissioner of employee relations under
section 43A.18, subdivision 2, covering all state employees who
are not represented by an exclusive bargaining representative
and whose compensation is not provided for by chapter 43A or
other law;
(2) review and approve, reject, or modify a plan for total
compensation and terms and conditions of employment for
employees in positions identified as being managerial under
section 43A.18, subdivision 3, whose salaries and benefits are
not otherwise provided for in law or other plans established
under chapter 43A;
(3) review and approve, reject, or modify recommendations
for salaries submitted by the governor or other appointing
authority under section 43A.18, subdivision 5, covering agency
head positions listed in section 15A.081 15A.0815;
(4) review and approve, reject, or modify recommendations
for salaries of officials of higher education systems under
section 15A.081, subdivision 7b; and
(5) review and approve, reject, or modify plans for
compensation, terms, and conditions of employment proposed under
section 43A.18, subdivisions 3a and 4.
Sec. 2. Minnesota Statutes 1996, section 15A.081,
subdivision 7b, is amended to read:
Subd. 7b. [HIGHER EDUCATION OFFICERS.] The board of
trustees of the Minnesota state colleges and universities and
the higher education services council shall set the salary rates
for, respectively, the chancellor of the Minnesota state
colleges and universities and the director of the higher
education services office. The board or the council shall
submit the proposed salary change to the legislative
coordinating commission for approval, modification, or rejection
in the manner provided in section 3.855. The salary rate for
the chancellor of the Minnesota state colleges and universities
may not exceed 95 percent of the salary of the governor under
section 15A.082, subdivision 3. For purposes of this
subdivision, "the salary rate of the chancellor" does not
include:
(1) employee benefits that are also provided for the
majority of all other full-time state employees, 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;
(3) reimbursement for actual expenses incurred by the
employee that the appointing authority determines to be directly
related to the performance of job responsibilities, including
any relocation expenses paid during the initial year of
employment; or
(4) a housing allowance that is comparable to housing
allowances provided to chancellors and university presidents in
similar higher education systems nationwide.
The salary of the director of the higher education services
office may not exceed the maximum of the salary range for the
commissioner of administration. In deciding whether to
recommend a salary increase, the governing board or council
shall consider the performance of the chancellor or director,
including the chancellor's or director's progress toward
attaining affirmative action goals.
Sec. 3. Minnesota Statutes 1996, section 15A.081,
subdivision 8, is amended to read:
Subd. 8. [EXPENSE ALLOWANCE.] Notwithstanding any law to
the contrary, positions listed in subdivision 1 section
15A.0815, subdivisions 2 and 3, constitutional officers, and the
commissioner of iron range resources and rehabilitation are
authorized an annual expense allowance not to exceed $1,500 for
necessary expenses in the normal performance of their duties for
which no other reimbursement is provided. The expenditures
under this subdivision are subject to any laws and rules
relating to budgeting, allotment and encumbrance, preaudit and
postaudit. The commissioner of finance may promulgate adopt
rules to assure the proper expenditure of these funds, and to
provide for reimbursement.
Sec. 4. Minnesota Statutes 1996, section 15A.081,
subdivision 9, is amended to read:
Subd. 9. [TRANSFER OF VACATION AND SICK LEAVE; CERTAIN
APPOINTEES.] (a) This subdivision governs transfers of
accumulated vacation leave and sick leave if the governor
appoints the incumbent of a position listed in this section
15A.0815 to another position listed in this section 15A.0815.
(b) An appointee moving between positions in the executive
branch shall transfer all vacation leave and sick leave hours to
the appointee's credit at the time of the new appointment.
(c) The governor may authorize an appointee to transfer
accumulated vacation leave and sick leave hours under the
following conditions:
(1) an appointee moving to a position in the executive
branch from a position outside the executive branch may be
permitted to transfer no more than 275 hours of accumulated
unliquidated vacation leave and no more than 900 hours of
accumulated unliquidated sick leave; and
(2) an appointee moving to a position outside the executive
branch from a position within the executive branch may be
permitted to transfer accumulated unliquidated vacation leave
and sick leave hours up to the maximum accumulations permitted
by the personnel policies governing the new position.
The governor shall notify the commissioner of employee relations
of any transfers authorized under this paragraph.
Sec. 5. [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.]
Subdivision 1. [SALARY LIMITS.] The governor or other
appropriate appointing authority shall set the salary rates for
positions listed in this section within the salary limits listed
in subdivisions 2 to 4, subject to approval of the legislative
coordinating commission and the legislature as provided by
sections 3.855, 15A.081, subdivision 7b, and 43A.18, subdivision
5.
Subd. 2. [GROUP I SALARY LIMITS.] The salaries for
positions in this subdivision may not exceed 85 percent of the
salary of the governor:
Commissioner of administration;
Commissioner of agriculture;
Commissioner of children, families, and learning;
Commissioner of commerce;
Commissioner of corrections;
Commissioner of economic security;
Commissioner of employee relations;
Commissioner of finance;
Commissioner of health;
Executive director, higher education services office;
Commissioner, housing finance agency;
Commissioner of human rights;
Commissioner of human services;
Executive director, state board of investment;
Commissioner of labor and industry;
Commissioner of natural resources;
Director of office of strategic and long-range planning;
Commissioner, pollution control agency;
Commissioner of public safety;
Commissioner, department of public service;
Commissioner of revenue;
Commissioner of trade and economic development;
Commissioner of transportation; and
Commissioner of veterans affairs.
Subd. 3. [GROUP II SALARY LIMITS.] The salaries for
positions in this subdivision may not exceed 75 percent of the
salary of the governor:
Ombudsman for corrections;
Executive director of gambling control board;
Commissioner, bureau of mediation services;
Ombudsman for mental health and retardation;
Chair, metropolitan council;
Executive director of pari-mutuel racing;
Executive director, public employees retirement
association;
Commissioner, public utilities commission;
Executive director, state retirement system; and
Executive director, teachers retirement association.
Subd. 4. [GROUP III SALARY LIMITS.] The salary for a
position in this subdivision may not exceed 25 percent of the
salary of the governor:
Chair, metropolitan airports commission.
Sec. 6. Minnesota Statutes 1996, section 15A.083,
subdivision 5, is amended to read:
Subd. 5. [TAX COURT.] Salaries The salary of judges a
judge of the tax court are is the same as the base salary for
a district judges as set under section 15A.082, subdivision
3 court judge. The salary of the chief tax court judge is the
same as the salary for a chief district court judge.
Sec. 7. Minnesota Statutes 1996, section 15A.083,
subdivision 6a, is amended to read:
Subd. 6a. [ADMINISTRATIVE LAW JUDGE; MAXIMUM SALARY
SALARIES.] The salary of the chief administrative law judge is
the same as the salary of a district court judge. The salaries
of the assistant chief administrative law judge and
administrative law judge supervisors are 95 percent of the
salary of a district court judge. The maximum salary of an
administrative law judge in the classified service employed by
the office of administrative hearings is 90 percent of the
salary of a district court judges judge as set under section
15A.082, subdivision 3.
Sec. 8. Minnesota Statutes 1996, section 15A.083,
subdivision 7, is amended to read:
Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND
COMPENSATION JUDGES.] Salaries of judges of the workers'
compensation court of appeals are the same as the salary for
district court judges as set under section 15A.082, subdivision
3. The salary of the chief judge of the workers' compensation
court of appeals is the same as the salary for a chief district
court judge. Salaries of compensation judges are 75 90 percent
of the salary of district court judges. The chief workers'
compensation settlement judge at the department of labor and
industry may be paid an annual salary that is up to five percent
greater than the salary of workers' compensation settlement
judges at the department of labor and industry.
Sec. 9. Minnesota Statutes 1996, section 43A.17,
subdivision 1, is amended to read:
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.081 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.
The salary of the commissioner of labor and industry is the
upper limit of salaries of employees in the bureau of mediation
services. 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.
Sec. 10. Minnesota Statutes 1996, section 43A.17,
subdivision 3, is amended to read:
Subd. 3. [UNUSUAL EMPLOYMENT SITUATIONS.] 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.
Such The action will must be consistent with applicable
provisions of collective bargaining agreements or plans pursuant
to adopted under section 43A.18. The commissioner shall review
each proposal giving due consideration to salary rates paid to
other employees in the same class and agency and may approve any
request which in the commissioner's judgment is in the best
interest of the state. If the commissioner determines that the
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 base
salary of the head of the agency or the maximum rate established
for the position, whichever is less.
Sec. 11. Minnesota Statutes 1996, section 43A.18,
subdivision 4, is amended to read:
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 paragraphs paragraph (c) and (d), must
be reviewed and approved, modified, or rejected by the
legislature and the legislative coordinating commission on
employee relations under section 3.855, subdivision subdivisions
2 and 3, before becoming effective.
(b) Total compensation for employees who are not covered by
a collective bargaining agreement in the offices of the
governor, lieutenant governor, attorney general, secretary of
state, state auditor, and state treasurer must be determined by
the governor, lieutenant governor, attorney general, secretary
of state, state auditor, and state treasurer, respectively.
(c) Total compensation for classified administrative law
judges in the office of administrative hearings must be
determined by the chief administrative law judge.
(d) Total compensation for unclassified positions not
covered by a collective bargaining agreement in the higher
education services office must be determined by the higher
education services office.
Sec. 12. Minnesota Statutes 1996, section 43A.18,
subdivision 5, is amended to read:
Subd. 5. [GOVERNOR APPOINTING AUTHORITIES TO RECOMMEND
CERTAIN SALARIES.] (a) The governor shall, by July 1 of each
odd-numbered year, or other appropriate appointing authority,
may submit to the legislative coordinating commission on
employee relations recommendations for salaries within the
salary range limits for the positions listed in section 15A.081,
subdivisions 1 and 7 15A.0815, subdivisions 2 to 4. The
governor An appointing authority may also propose additions or
deletions of positions from those listed.
(b) Before submitting the recommendations, the governor
appointing authority shall consult with the commissioner of
administration, the commissioner of finance, and the
commissioner of employee relations concerning the
recommendations.
(c) In making recommendations, the governor appointing
authority shall consider the criteria established in subdivision
8 and the performance of individual incumbents. The performance
evaluation must include a review of an incumbent's progress
toward attainment of affirmative action goals. The governor
appointing authority shall establish an objective system for
quantifying knowledge, abilities, duties, responsibilities, and
accountabilities and in determining recommendations rate each
position by this system.
(d) Before the governor's appointing authority's
recommended salaries take effect, the recommendations must be
reviewed and approved, rejected, or modified by the
legislative coordinating commission on employee relations and
the legislature under section 3.855, subdivision subdivisions 2
and 3. The governor may also at any time propose changes in the
salary rate of any positions covered by this subdivision, which
must be submitted and approved in the same manner as provided in
this subdivision. If, when the legislature is not in session,
the commission fails to reject or modify salary recommendations
of the governor within 30 calendar days of their receipt, the
recommendations are deemed to be approved.
(e) The governor appointing authority shall set the initial
salary of a head of a new agency or a chair of a new
metropolitan board or commission whose salary is not
specifically prescribed by law after consultation with the
commissioner, whose recommendation is advisory only. The amount
of the new salary must be comparable to the salary of an agency
head or commission chair having similar duties and
responsibilities.
(f) The salary of a newly appointed head of an agency or
chair of a metropolitan agency listed in section 15A.081,
subdivision 1 or 7 15A.0815, subdivisions 2 to 4, may be
increased or decreased by the governor appointing authority from
the salary previously set for that position within 30 days of
the new appointment after consultation with the commissioner.
If the governor appointing authority increases a salary under
this paragraph, the governor appointing authority shall submit
the new salary to the legislative coordinating commission on
employee relations and the full legislature for approval,
modification, or rejection under section 3.855,
subdivision subdivisions 2 and 3. If, when the legislature is
not in session, the commission fails to reject or modify salary
recommendations of the governor within 30 calendar days of their
receipt, the recommendations are deemed to be approved.
Sec. 13. Minnesota Statutes 1996, section 85A.02,
subdivision 5a, is amended to read:
Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an
administrator who shall serve as the executive secretary and
principal administrative officer of the board and, subject to
its approval, the administrator shall operate the Minnesota
zoological garden and enforce all rules and policy decisions of
the board. The administrator must be chosen solely on the basis
of training, experience, and other qualifications appropriate to
the field of zoo management and development. The board shall
set the compensation for salary of the administrator within the
limits established for the commissioner of agriculture in
section 15A.081, subdivision 1. The salary of the administrator
may not exceed 85 percent of the salary of the governor. The
administrator shall perform duties assigned by the board
and shall serve serves in the unclassified service at the
pleasure of the board. The administrator, with the
participation of the board, shall appoint a development director
in the unclassified service or contract with a development
consultant to establish mechanisms to foster community
participation in and community support for the Minnesota
zoological garden. The board may employ other necessary
professional, technical, and clerical personnel. Employees of
the zoological garden are eligible for salary supplement in the
same manner as employees of other state agencies. The
commissioner of finance shall determine the amount of salary
supplement based on available funds.
(b) The board may contract with individuals to perform
professional services and may contract for the purchases of
necessary species exhibits, supplies, services, and equipment.
The board may also contract for the construction and operation
of entertainment facilities on the zoo grounds that are not
directly connected to ordinary functions of the zoological
garden. The zoo board shall may not enter into any a final
agreement for construction of any an entertainment facility that
is not directly connected to the ordinary functions of the zoo
until after final construction plans have been submitted to the
chairs of the senate finance and house appropriations committees
for their recommendations.
The zoo may not contract for entertainment during the
period of the Minnesota state fair that would directly compete
with entertainment at the Minnesota state fair.
Sec. 14. Minnesota Statutes 1996, section 298.22,
subdivision 1, is amended to read:
Subdivision 1. (1) The office of governor shall appoint
the commissioner of iron range resources and rehabilitation is
created. The commissioner shall be appointed by the governor
under the provisions of section 15.06.
(2) The commissioner may hold such other positions or
appointments as that are not incompatible with duties as
commissioner of iron range resources and rehabilitation. The
commissioner may appoint a deputy commissioner. All expenses of
the commissioner, including the payment of such assistance as
may be necessary, shall must be paid out of the amounts
appropriated by section 298.28. The compensation salary of the
commissioner shall must be set by the legislative coordinating
commission and may not exceed the maximum salary set for the
commissioner of administration under section 15A.081,
subdivision 1 75 percent of the salary of the governor.
(3) When the commissioner shall determine determines that
distress and unemployment exists or may exist in the future in
any county by reason of the removal of natural resources or a
possibly limited use thereof of natural resources in the future
and the any resulting decrease in employment resulting
therefrom, now or hereafter, the commissioner may use such
whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 as that are determined to be
necessary and proper in the development of the remaining
resources of said the county and in the vocational training and
rehabilitation of its residents, except that the amount needed
to cover cost overruns awarded to a contractor by an arbitrator
in relation to a contract awarded by the commissioner or in
effect after July 1, 1985, is appropriated from the general
fund. For the purposes of this section, "development of
remaining resources" includes, but is not limited to, the
promotion of tourism.
Sec. 15. Minnesota Statutes 1996, section 349A.02,
subdivision 1, is amended to read:
Subdivision 1. [DIRECTOR.] A state lottery is established
under the supervision and control of the director of the state
lottery appointed by the governor with the advice and consent of
the senate. The director must be qualified by experience and
training in the operation of a lottery to supervise the
lottery. The director serves in the unclassified service. The
annual salary rate authorized for the director is equal to 80 85
percent of the salary rate prescribed for the governor as of the
effective date of Laws 1993, chapter 146.
Sec. 16. [SALARIES OF CONSTITUTIONAL OFFICERS,
LEGISLATORS, AND JUDGES.]
(a) The salaries of constitutional officers are increased
by 2.5 percent effective July 1, 1997, and by 2.5 percent
effective January 1, 1998.
(b) The salaries of legislators are increased by 5.0
percent effective January 4, 1999.
(c) The salaries of the judges of the supreme court, court
of appeals, and district court are increased by 4.0 percent
effective July 1, 1997, and by 5.0 percent effective January 1,
1998.
(d) Effective July 1, 1999, the salaries of judges of the
supreme court, court of appeals, and district court are
increased by the average of the general salary adjustments for
state employees in fiscal year 1998 provided by negotiated
collective bargaining agreements or arbitration awards ratified
by the legislature in the 1998 legislative session.
(e) Effective January 1, 2000, the salaries of judges of
the supreme court, court of appeals, and district court are
increased by the average of the general salary adjustments for
state employees in fiscal year 1999 provided by negotiated
collective bargaining agreements or arbitration awards ratified
by the legislature in the 1998 legislative session.
(f) The commissioner of employee relations shall calculate
the average of the general salary adjustments provided by
negotiated collective bargaining agreements or arbitration
awards ratified by the legislature in the 1998 legislative
session. Negotiated collective bargaining agreements or
arbitration awards that do not include general salary
adjustments may not be included in these calculations. The
commissioner shall weigh the general salary adjustments by the
number of full-time equivalent employees covered by each
agreement or arbitration award. The commissioner shall
calculate the average general salary adjustment for each fiscal
year covered by the agreements or arbitration awards. The
results of these calculations must be expressed as percentages,
rounded to the nearest one-tenth of one percent. The
commissioner shall calculate the new salaries for the positions
listed in paragraphs (d) and (e) using the applicable
percentages from the calculations in this paragraph and report
them to the speaker of the house, the president of the senate,
the chief justice of the supreme court, and the governor.
Sec. 17. [PHASE-IN OF SALARY INCREASES.]
(a) Notwithstanding Minnesota Statutes, section 15A.083,
subdivisions 6a and 7, the salary of an administrative law judge
or compensation judge may not exceed 85 percent of the salary of
a district court judge before July 1, 1998. After June 30,
1998, the salary of an administrative law judge and a
compensation judge is governed by Minnesota Statutes, section
15A.083, subdivisions 6a and 7. If an employee's current salary
exceeds the salary provided by this subdivision, the employee
retains that salary, but may not receive a salary increase until
the salary provided by this section exceeds the employee's
current salary.
(b) Notwithstanding Minnesota Statutes, section 15A.083,
subdivision 6a, the salary of the assistant chief administrative
law judge and administrative law judge supervisors in the office
of administrative hearings is 90 percent of the salary of a
district court judge effective July 1, 1997. After June 30,
1998, the salary of the assistant chief administrative law judge
and administrative law judge supervisors is governed by
Minnesota Statutes, section 15A.083, subdivision 6a. If an
employee's current salary exceeds the salary provided by this
subdivision, the employee retains the salary, but may not
receive a salary increase until the salary provided by this
section exceeds the employee's current salary.
Sec. 18. [REVISOR INSTRUCTION.]
The revisor of statutes shall substitute the reference
"section 15A.0815" for each reference to section 15A.081,
subdivisions 1, 7, and 7b, wherever they occur in the next
edition of Minnesota Statutes and Minnesota Rules.
Sec. 19. [REPEALER.]
Minnesota Statutes 1996, section 15A.081, subdivisions 1
and 7, are repealed.
Sec. 20. [EFFECTIVE DATE.]
Sections 1 to 19 are effective retroactive to July 1, 1997.
Presented to the governor August 20, 1997
Signed by the governor August 22, 1997, 10:55 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes