1.1                          A bill for an act
  1.2             relating to state government; creating a program under 
  1.3             which state employees and former state employees make 
  1.4             proposals to reduce the cost of operating state 
  1.5             government or provide the state better or more 
  1.6             efficient service; providing for sharing of savings; 
  1.7             amending Minnesota Statutes 1998, section 181.932, 
  1.8             subdivision 1; Minnesota Statutes 1999 Supplement, 
  1.9             section 181.932, subdivision 2; proposing coding for 
  1.10            new law in Minnesota Statutes, chapter 465. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 181.932, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [PROHIBITED ACTION.] An employer shall not 
  1.15  discharge, discipline, threaten, otherwise discriminate against, 
  1.16  or penalize an employee regarding the employee's compensation, 
  1.17  terms, conditions, location, or privileges of employment because:
  1.18     (a) the employee, or a person acting on behalf of an 
  1.19  employee, in good faith, reports a violation or suspected 
  1.20  violation of any federal or state law or rule adopted pursuant 
  1.21  to law to an employer or to any governmental body or law 
  1.22  enforcement official; 
  1.23     (b) the employee is requested by a public body or office to 
  1.24  participate in an investigation, hearing, inquiry; 
  1.25     (c) the employee refuses an employer's order to perform an 
  1.26  action that the employee has an objective basis in fact to 
  1.27  believe violates any state or federal law or rule or regulation 
  1.28  adopted pursuant to law, and the employee informs the employer 
  2.1   that the order is being refused for that reason; or 
  2.2      (d) the employee, in good faith, reports a situation in 
  2.3   which the quality of health care services provided by a health 
  2.4   care facility, organization, or health care provider violates a 
  2.5   standard established by federal or state law or a professionally 
  2.6   recognized national clinical or ethical standard and potentially 
  2.7   places the public at risk of harm; or 
  2.8      (e) a state employee or former state employee submits a 
  2.9   proposal to the board of government innovation and cooperation 
  2.10  under section 465.7975. 
  2.11     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.12  181.932, subdivision 2, is amended to read: 
  2.13     Subd. 2.  [DISCLOSURE OF IDENTITY.] The identity of any 
  2.14  employee making a report to a governmental body or law 
  2.15  enforcement official under subdivision 1, clause (a) or (d), is 
  2.16  private data on individuals as defined in section 13.02.  The 
  2.17  identity of a state employee or former state employee submitting 
  2.18  a proposal under subdivision 1, clause (e), is private data on 
  2.19  individuals to the extent provided in section 465.7975.  The 
  2.20  identity of an employee providing information under subdivision 
  2.21  1, clause (b), is private data on individuals if: 
  2.22     (1) the employee would not have provided the information 
  2.23  without an assurance that the employee's identity would remain 
  2.24  private, because of a concern that the employer would commit an 
  2.25  action prohibited under subdivision 1 or that the employee would 
  2.26  be subject to some other form of retaliation; or 
  2.27     (2) the state agency, statewide system, or political 
  2.28  subdivision reasonably believes that the employee would not have 
  2.29  provided the data because of that concern.  
  2.30     If the disclosure is necessary for prosecution, the 
  2.31  identity of the employee may be disclosed but the employee shall 
  2.32  be informed prior to the disclosure. 
  2.33     Sec.  3.  [465.7975] [PROPOSALS.] 
  2.34     Subdivision 1.  [PROGRAM ESTABLISHMENT.] The board shall 
  2.35  establish and promote a program to solicit proposals from state 
  2.36  employees and former state employees for ways to reduce the cost 
  3.1   of operating state government or for ways of providing the state 
  3.2   better or more efficient service.  The program must include 
  3.3   potential for sharing savings with an employee, former employee, 
  3.4   or group of current or former employees whose proposal results 
  3.5   in a cost savings to the state.  For purposes of this section, 
  3.6   state "employee" has the meaning defined in section 43A.02, 
  3.7   subdivision 21. 
  3.8      Subd. 2.  [PROCESS.] (a) A state employee, former state 
  3.9   employee, or a group of state employees or former state 
  3.10  employees may submit a proposal to the board for reducing the 
  3.11  cost of operating state government or for providing the state 
  3.12  better or more efficient service.  The board may develop a 
  3.13  recommended form for submission of proposals. 
  3.14     (b) The board must decide how to act on each proposal.  The 
  3.15  board must determine which proposals warrant consideration for 
  3.16  award of shared savings payments.  In making its determination, 
  3.17  the board must consider: 
  3.18     (1) the potential for significant, measurable savings; 
  3.19     (2) the extent to which the proposal goes beyond common 
  3.20  ideas for reducing expenditures; 
  3.21     (3) the extent to which the proposal has the potential to 
  3.22  reduce expenditures without reducing the quality or level of 
  3.23  service that is contemplated by the law establishing the 
  3.24  program; 
  3.25     (4) the extent to which people affected by the service are 
  3.26  likely to support the proposal, and the potential for including 
  3.27  input from affected people in the implementation of the proposal.
  3.28     (c) If the board determines a proposal does not warrant 
  3.29  consideration for a shared savings plan, the board shall forward 
  3.30  the proposal to the appropriate state agency for its review and 
  3.31  comment.  If the board determines a proposal warrants further 
  3.32  consideration for shared savings payments, it shall seek review 
  3.33  and comments from the appropriate state agency to further 
  3.34  analyze the feasibility of the proposal and the extent to which 
  3.35  the potential savings could be measured. 
  3.36     Subd. 3.  [SHARED SAVINGS PLANS.] (a) An approved shared 
  4.1   savings plan must contain the following elements: 
  4.2      (1) a plan to reduce state government costs; 
  4.3      (2) a method of documenting reduction in costs attributable 
  4.4   to the plan; 
  4.5      (3) an agreement that a specified percentage of documented 
  4.6   net cost savings over a prescribed period of time will be 
  4.7   shared, in the form of a one-time payment, with employees or 
  4.8   former employees who suggested the plan. 
  4.9      (b) In approving a shared savings plan, the board shall use 
  4.10  the following guidelines in determining the amount of net 
  4.11  savings proposed to be shared: 
  4.12  Projected Annual Savings     Amount to be shared
  4.13  $0 to $1,000              20 percent, not to exceed $150
  4.14  $1,001 to $10,000         15 percent, not to exceed $1,000
  4.15  $10,001 to $100,000       10 percent, not to exceed $7,500
  4.16  $100,001 to $500,000      7.5 percent, not to exceed $25,000
  4.17  $500,001 to $1 million    5 percent, not to exceed $37,500
  4.18  Over $1 million           3.75 percent, not to exceed $100,000
  4.19     The percentage to be shared applies only to the first full 
  4.20  year of net savings after the proposal has been fully 
  4.21  implemented. 
  4.22     (c) A state employee who is represented by an exclusive 
  4.23  representative may not receive payments under a shared savings 
  4.24  plan except as provided in a collective bargaining agreement. 
  4.25     Subd. 4.  [SHARED SAVINGS PAYMENTS.] (a) Shared savings 
  4.26  payments may be made only when the board determines that a 
  4.27  proposal has been implemented and that the projected savings 
  4.28  under the shared savings plan have been realized.  This 
  4.29  determination, and the calculation of the amount of savings to 
  4.30  be shared, is at the sole discretion of the board. 
  4.31     (b) Shared savings payments must be made from funds 
  4.32  appropriated for the operation of the agency program that is the 
  4.33  subject of the shared savings plan.  Shared savings payments 
  4.34  under this section are a permissible use of an appropriation for 
  4.35  operation of an agency program.  
  4.36     (c) Shared savings payments may not be made to persons who 
  5.1   are covered by the managerial plan established in section 
  5.2   43A.18, subdivision 3, or the excluded administrators plan 
  5.3   established in section 43A.18, subdivision 3a, unless the board 
  5.4   determines that the proposal involves matters that are outside 
  5.5   the scope of the manager's normal job duties.  A legislator, 
  5.6   constitutional officer, judge, or commissioner of an agency 
  5.7   listed in section 15.06, subdivision 1, may not make a shared 
  5.8   savings proposal and may not receive shared savings payments, 
  5.9   but persons who formerly served in these positions may make 
  5.10  proposals and receive shared savings payments. 
  5.11     Subd. 5.  [AGENCY COOPERATION.] Upon request of the board 
  5.12  or its staff, a state agency must cooperate with the board in 
  5.13  administration of the suggestion and shared savings program. 
  5.14  Requested cooperation may include: 
  5.15     (1) assisting the board in analyzing the merits of a 
  5.16  suggestion; 
  5.17     (2) explaining to the board how a suggestion has been 
  5.18  implemented, or why it is not feasible or desirable to implement 
  5.19  a suggestion, whether or not the suggestion results in a shared 
  5.20  savings plan; and 
  5.21     (3) assisting the board in the design and implementation of 
  5.22  a shared savings plan. 
  5.23     Subd. 6.  [DATA PRACTICES.] The name of an employee or 
  5.24  former employee submitting a suggestion to the board is private 
  5.25  data on individuals.  However, the person's name becomes public 
  5.26  data when a shared savings plan is approved by the board.  The 
  5.27  board must notify affected people who wish to participate in a 
  5.28  shared savings plan that their names will become public if the 
  5.29  plan is approved. 
  5.30     Subd. 7.  [REPORT.] The board shall report annually to the 
  5.31  legislature on the implementation of this section.  The reports 
  5.32  must summarize the proposals submitted, the board's action on 
  5.33  each proposal, and the affected state agency's action on each 
  5.34  proposal. 
  5.35     Sec. 4.  [LIMIT.] 
  5.36     Until June 30, 2001, the board may approve up to ten shared 
  6.1   savings plans for implementation.  The board shall forward other 
  6.2   proposals to the appropriate agency for consideration. 
  6.3      Sec. 5.  [EFFECTIVE DATE.] 
  6.4      Sections 1 to 4 are effective the day following final 
  6.5   enactment.