1.1                          A bill for an act
  1.2             relating to education; removing superintendents' 
  1.3             salary cap; amending Minnesota Statutes 1996, section 
  1.4             43A.17, subdivisions 9 and 10. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 43A.17, 
  1.7   subdivision 9, is amended to read: 
  1.8      Subd. 9.  [POLITICAL SUBDIVISION COMPENSATION LIMIT.] The 
  1.9   salary and the value of all other forms of compensation of a 
  1.10  person employed by a statutory or home rule charter city, 
  1.11  county, town, ~~school district,~~ metropolitan or regional agency, 
  1.12  or other political subdivision of this state excluding a school 
  1.13  district, or employed under section 422A.03, may not exceed 95 
  1.14  percent of the salary of the governor as set under section 
  1.15  15A.082, except as provided in this subdivision.  Deferred 
  1.16  compensation and payroll allocations to purchase an individual 
  1.17  annuity contract for an employee are included in determining the 
  1.18  employee's salary.  Other forms of compensation which shall be 
  1.19  included to determine an employee's total compensation are all 
  1.20  other direct and indirect items of compensation which are not 
  1.21  specifically excluded by this subdivision.  Other forms of 
  1.22  compensation which shall not be included in a determination of 
  1.23  an employee's total compensation for the purposes of this 
  1.24  subdivision are: 
  1.25     (1) employee benefits that are also provided for the 
  2.1   majority of all other full-time employees of the political 
  2.2   subdivision, vacation and sick leave allowances, health and 
  2.3   dental insurance, disability insurance, term life insurance, and 
  2.4   pension benefits or like benefits the cost of which is borne by 
  2.5   the employee or which is not subject to tax as income under the 
  2.6   Internal Revenue Code of 1986; 
  2.7      (2) dues paid to organizations that are of a civic, 
  2.8   professional, educational, or governmental nature; and 
  2.9      (3) reimbursement for actual expenses incurred by the 
  2.10  employee which the governing body determines to be directly 
  2.11  related to the performance of job responsibilities, including 
  2.12  any relocation expenses paid during the initial year of 
  2.13  employment. 
  2.14     The value of other forms of compensation shall be the 
  2.15  annual cost to the political subdivision for the provision of 
  2.16  the compensation.  The salary of a medical doctor or doctor of 
  2.17  osteopathy occupying a position that the governing body of the 
  2.18  political subdivision has determined requires an M.D. or D.O. 
  2.19  degree is excluded from the limitation in this subdivision.  The 
  2.20  commissioner may increase the limitation in this subdivision for 
  2.21  a position that the commissioner has determined requires special 
  2.22  expertise necessitating a higher salary to attract or retain a 
  2.23  qualified person.  The commissioner shall review each proposed 
  2.24  increase giving due consideration to salary rates paid to other 
  2.25  persons with similar responsibilities in the state and nation.  
  2.26  The commissioner may not increase the limitation until the 
  2.27  commissioner has presented the proposed increase to the 
  2.28  legislative coordinating commission and received the 
  2.29  commission's recommendation on it.  The recommendation is 
  2.30  advisory only.  If the commission does not give its 
  2.31  recommendation on a proposed increase within 30 days from its 
  2.32  receipt of the proposal, the commission is deemed to have 
  2.33  recommended approval. 
  2.34     Sec. 2.  Minnesota Statutes 1996, section 43A.17, 
  2.35  subdivision 10, is amended to read: 
  2.36     Subd. 10.  [LOCAL ELECTED OFFICIALS; CERTAIN COMPENSATION 
  3.1   PROHIBITED.] The compensation plan for an elected official of a 
  3.2   statutory or home rule charter city, county~~,~~ or town~~, or school~~ 
  3.3   ~~district~~ may not include a provision for vacation or sick 
  3.4   leave.  The salary of an official covered by this subdivision 
  3.5   may not be diminished because of the official's absence from 
  3.6   official duties because of vacation or sickness. 
  3.7      Sec. 3.  [EFFECTIVE DATE.] 
  3.8      Consistent with the requirements in Minnesota Statutes 
  3.9   1996, section 123.34, subdivision 9, sections 1 and 2 apply to 
  3.10  superintendents' contracts negotiated to apply beginning the 
  3.11  first day of instruction for the 1998-1999 school year and 
  3.12  thereafter.