1.1                          A bill for an act 
  1.2             relating to employment; establishing and modifying 
  1.3             certain salary provisions for certain public 
  1.4             employees; amending Minnesota Statutes 1996, sections 
  1.5             3.855, subdivision 3; 15A.081, subdivisions 7b, 8, and 
  1.6             9; 15A.083, subdivisions 5, 6a, and 7; 43A.17, 
  1.7             subdivisions 1 and 3; 43A.18, subdivisions 4 and 5; 
  1.8             85A.02, subdivision 5a; 298.22, subdivision 1; and 
  1.9             349A.02, subdivision 1; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 15A; repealing 
  1.11            Minnesota Statutes 1996, section 15A.081, subdivisions 
  1.12            1 and 7. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1996, section 3.855, 
  1.15  subdivision 3, is amended to read: 
  1.16     Subd. 3.  [OTHER SALARIES AND COMPENSATION PLANS.] The 
  1.17  commission shall also: 
  1.18     (1) review and approve, reject, or modify a plan for 
  1.19  compensation and terms and conditions of employment prepared and 
  1.20  submitted by the commissioner of employee relations under 
  1.21  section 43A.18, subdivision 2, covering all state employees who 
  1.22  are not represented by an exclusive bargaining representative 
  1.23  and whose compensation is not provided for by chapter 43A or 
  1.24  other law; 
  1.25     (2) review and approve, reject, or modify a plan for total 
  1.26  compensation and terms and conditions of employment for 
  1.27  employees in positions identified as being managerial under 
  1.28  section 43A.18, subdivision 3, whose salaries and benefits are 
  1.29  not otherwise provided for in law or other plans established 
  2.1   under chapter 43A; 
  2.2      (3) review and approve, reject, or modify recommendations 
  2.3   for salaries submitted by the governor or other appointing 
  2.4   authority under section 43A.18, subdivision 5, covering agency 
  2.5   head positions listed in section 15A.081 15A.0815; 
  2.6      (4) review and approve, reject, or modify recommendations 
  2.7   for salaries of officials of higher education systems under 
  2.8   section 15A.081, subdivision 7b; and 
  2.9      (5) review and approve, reject, or modify plans for 
  2.10  compensation, terms, and conditions of employment proposed under 
  2.11  section 43A.18, subdivisions 3a and 4. 
  2.12     Sec. 2.  Minnesota Statutes 1996, section 15A.081, 
  2.13  subdivision 7b, is amended to read: 
  2.14     Subd. 7b.  [HIGHER EDUCATION OFFICERS.] The board of 
  2.15  trustees of the Minnesota state colleges and universities and 
  2.16  the higher education services council shall set the salary rates 
  2.17  for, respectively, the chancellor of the Minnesota state 
  2.18  colleges and universities and the director of the higher 
  2.19  education services office.  The board or the council shall 
  2.20  submit the proposed salary change to the legislative 
  2.21  coordinating commission for approval, modification, or rejection 
  2.22  in the manner provided in section 3.855.  The salary rate for 
  2.23  the chancellor of the Minnesota state colleges and universities 
  2.24  may not exceed 95 percent of the salary of the governor under 
  2.25  section 15A.082, subdivision 3.  For purposes of this 
  2.26  subdivision, "the salary rate of the chancellor" does not 
  2.27  include: 
  2.28     (1) employee benefits that are also provided for the 
  2.29  majority of all other full-time state employees, vacation and 
  2.30  sick leave allowances, health and dental insurance, disability 
  2.31  insurance, term life insurance, and pension benefits or like 
  2.32  benefits the cost of which is borne by the employee or which is 
  2.33  not subject to tax as income under the Internal Revenue Code of 
  2.34  1986; 
  2.35     (2) dues paid to organizations that are of a civic, 
  2.36  professional, educational, or governmental nature; 
  3.1      (3) reimbursement for actual expenses incurred by the 
  3.2   employee that the appointing authority determines to be directly 
  3.3   related to the performance of job responsibilities, including 
  3.4   any relocation expenses paid during the initial year of 
  3.5   employment; or 
  3.6      (4) a housing allowance that is comparable to housing 
  3.7   allowances provided to chancellors and university presidents in 
  3.8   similar higher education systems nationwide.  
  3.9      The salary of the director of the higher education services 
  3.10  office may not exceed the maximum of the salary range for the 
  3.11  commissioner of administration.  In deciding whether to 
  3.12  recommend a salary increase, the governing board or council 
  3.13  shall consider the performance of the chancellor or director, 
  3.14  including the chancellor's or director's progress toward 
  3.15  attaining affirmative action goals. 
  3.16     Sec. 3.  Minnesota Statutes 1996, section 15A.081, 
  3.17  subdivision 8, is amended to read: 
  3.18     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
  3.19  the contrary, positions listed in subdivision 1 section 
  3.20  15A.0815, subdivisions 3 and 4, constitutional officers, and the 
  3.21  commissioner of iron range resources and rehabilitation are 
  3.22  authorized an annual expense allowance not to exceed $1,500 for 
  3.23  necessary expenses in the normal performance of their duties for 
  3.24  which no other reimbursement is provided.  The expenditures 
  3.25  under this subdivision are subject to any laws and rules 
  3.26  relating to budgeting, allotment and encumbrance, preaudit and 
  3.27  postaudit.  The commissioner of finance may promulgate adopt 
  3.28  rules to assure the proper expenditure of these funds, and to 
  3.29  provide for reimbursement. 
  3.30     Sec. 4.  Minnesota Statutes 1996, section 15A.081, 
  3.31  subdivision 9, is amended to read: 
  3.32     Subd. 9.  [TRANSFER OF VACATION AND SICK LEAVE; CERTAIN 
  3.33  APPOINTEES.] (a) This subdivision governs transfers of 
  3.34  accumulated vacation leave and sick leave if the governor 
  3.35  appoints the incumbent of a position listed in this section 
  3.36  15A.0815 to another position listed in this section 15A.0815. 
  4.1      (b) An appointee moving between positions in the executive 
  4.2   branch shall transfer all vacation leave and sick leave hours to 
  4.3   the appointee's credit at the time of the new appointment. 
  4.4      (c) The governor may authorize an appointee to transfer 
  4.5   accumulated vacation leave and sick leave hours under the 
  4.6   following conditions: 
  4.7      (1) an appointee moving to a position in the executive 
  4.8   branch from a position outside the executive branch may be 
  4.9   permitted to transfer no more than 275 hours of accumulated 
  4.10  unliquidated vacation leave and no more than 900 hours of 
  4.11  accumulated unliquidated sick leave; and 
  4.12     (2) an appointee moving to a position outside the executive 
  4.13  branch from a position within the executive branch may be 
  4.14  permitted to transfer accumulated unliquidated vacation leave 
  4.15  and sick leave hours up to the maximum accumulations permitted 
  4.16  by the personnel policies governing the new position. 
  4.17  The governor shall notify the commissioner of employee relations 
  4.18  of any transfers authorized under this paragraph. 
  4.19     Sec. 5.  [15A.0815] [SALARY LIMITS FOR CERTAIN EMPLOYEES.] 
  4.20     Subdivision 1.  [SALARY LIMITS.] The governor or other 
  4.21  appropriate appointing authority shall set the salary rates for 
  4.22  positions listed in this section within the salary limits listed 
  4.23  in subdivisions 2 to 5, subject to approval of the legislative 
  4.24  coordinating commission and the legislature as provided by 
  4.25  sections 3.855 and 43A.18, subdivision 5.  For purposes of 
  4.26  subdivisions 2 to 5, the governor's salary is as established 
  4.27  under section 15A.082. 
  4.28     Subd. 2.  [HIGHER EDUCATION SYSTEM LIMITS.] The salary rate 
  4.29  of the chancellor of Minnesota state colleges and universities 
  4.30  may not exceed 95 percent of the salary of the governor.  For 
  4.31  purposes of this subdivision, "the salary rate of the 
  4.32  chancellor" does not include: 
  4.33     (1) employee benefits that are also provided for the 
  4.34  majority of all other full-time state employees, vacation and 
  4.35  sick leave allowances, health and dental insurance, disability 
  4.36  insurance, term life insurance, and pension benefits; 
  5.1      (2) any benefits the cost of which is borne by the employee 
  5.2   or which is not subject to tax as income under the Internal 
  5.3   Revenue Code of 1986; 
  5.4      (3) dues paid to organizations that are of a civic, 
  5.5   professional, educational, or governmental nature; 
  5.6      (4) reimbursement for actual expenses incurred by the 
  5.7   employee that the appointing authority determines to be directly 
  5.8   related to the performance of job responsibilities, including 
  5.9   any relocation expenses paid during the initial year of 
  5.10  employment; or 
  5.11     (5) a housing allowance that is comparable to housing 
  5.12  allowances provided to chancellors and university presidents in 
  5.13  similar higher education systems nationwide. 
  5.14     Subd. 3.  [GROUP I SALARY LIMITS.] The salaries for 
  5.15  positions in this subdivision may not exceed 85 percent of the 
  5.16  salary of the governor:  
  5.17     Commissioner of administration; 
  5.18     Commissioner of agriculture; 
  5.19     Commissioner of children, families, and learning; 
  5.20     Commissioner of commerce; 
  5.21     Commissioner of corrections; 
  5.22     Commissioner of economic security; 
  5.23     Commissioner of employee relations; 
  5.24     Commissioner of finance; 
  5.25     Commissioner of health; 
  5.26     Executive director, higher education services office; 
  5.27     Commissioner, housing finance agency; 
  5.28     Commissioner of human rights; 
  5.29     Commissioner of human services; 
  5.30     Executive director, state board of investment; 
  5.31     Commissioner of labor and industry; 
  5.32     Commissioner of natural resources; 
  5.33     Commissioner of office of strategic and long-range 
  5.34  planning; 
  5.35     Commissioner, pollution control agency; 
  5.36     Commissioner of public safety; 
  6.1      Commissioner, department of public service; 
  6.2      Commissioner of revenue; 
  6.3      Commissioner of trade and economic development; 
  6.4      Commissioner of transportation; 
  6.5      Commissioner of veterans affairs. 
  6.6      Subd. 4.  [GROUP II SALARY LIMITS.] The salaries for 
  6.7   positions in this subdivision may not exceed 75 percent of the 
  6.8   salary of the governor: 
  6.9      Ombudsman for corrections; 
  6.10     Executive director of gambling control board; 
  6.11     Commissioner, bureau of mediation services; 
  6.12     Ombudsman for mental health and retardation; 
  6.13     Chair, metropolitan council; 
  6.14     Executive director of pari-mutuel racing; 
  6.15     Executive director, public employees retirement 
  6.16  association; 
  6.17     Executive director, agricultural utilization research 
  6.18  institute; 
  6.19     Commissioner, public utilities commission; 
  6.20     Executive director, state retirement system; 
  6.21     Executive director, teacher's retirement association. 
  6.22     Subd. 5.  [GROUP III SALARY LIMITS.] The salary for a 
  6.23  position in this subdivision may not exceed 25 percent of the 
  6.24  salary of the governor: 
  6.25     Chair, metropolitan airports commission. 
  6.26     Sec. 6.  Minnesota Statutes 1996, section 15A.083, 
  6.27  subdivision 5, is amended to read: 
  6.28     Subd. 5.  [TAX COURT.] Salaries The salary of judges a 
  6.29  judge of the tax court are is the same as the base salary for 
  6.30  a district judges court judge as set under section 15A.082, 
  6.31  subdivision 3.  The salary of the chief tax court judge is the 
  6.32  same as the salary for a chief district court judge. 
  6.33     Sec. 7.  Minnesota Statutes 1996, section 15A.083, 
  6.34  subdivision 6a, is amended to read: 
  6.35     Subd. 6a.  [ADMINISTRATIVE LAW JUDGE; MAXIMUM SALARY 
  6.36  SALARIES.] The salary of the chief administrative law judge is 
  7.1   the same as the salary of a district court judge as set under 
  7.2   section 15A.082, subdivision 3.  The salaries of the assistant 
  7.3   chief administrative law judge and the administrative law judge 
  7.4   supervisor are 95 percent of the salary of a district court 
  7.5   judge as set under section 15A.082, subdivision 3.  The maximum 
  7.6   salary of an administrative law judge in the classified service 
  7.7   employed by the office of administrative hearings is 90 percent 
  7.8   of the salary of a district court judges judge as set under 
  7.9   section 15A.082, subdivision 3.  
  7.10     Sec. 8.  Minnesota Statutes 1996, section 15A.083, 
  7.11  subdivision 7, is amended to read: 
  7.12     Subd. 7.  [WORKERS' COMPENSATION COURT OF APPEALS AND 
  7.13  COMPENSATION JUDGES.] Salaries of judges of the workers' 
  7.14  compensation court of appeals are the same as the salary for 
  7.15  district judges as set under section 15A.082, subdivision 
  7.16  3.  The salary of the chief judge of the workers' compensation 
  7.17  court of appeals is the same as the salary for a chief district 
  7.18  court judge.  Salaries of compensation judges are 75 90 percent 
  7.19  of the salary of district court judges.  The chief workers' 
  7.20  compensation settlement judge at the department of labor and 
  7.21  industry may be paid an annual salary that is up to five percent 
  7.22  greater than the salary of workers' compensation settlement 
  7.23  judges at the department of labor and industry. 
  7.24     Sec. 9.  [15A.0825] [SALARY INCREASES FOR CONSTITUTIONAL 
  7.25  OFFICERS, JUDGES, AND LEGISLATORS.] 
  7.26     (a) On the specified dates, the salaries of judges of the 
  7.27  supreme court, court of appeals, and district court; the 
  7.28  salaries of the governor, lieutenant governor, attorney general, 
  7.29  state auditor, secretary of state, and state treasurer; and the 
  7.30  salary of legislators are increased according to the procedures 
  7.31  required by this subdivision. 
  7.32     (b) On the first Monday in January in each odd-numbered 
  7.33  year, the salaries for the positions listed in paragraph (a) are 
  7.34  increased by the lesser of the average of the general salary 
  7.35  adjustments for state employees in the previous fiscal year or 
  7.36  the percentage increase in the Consumer Price Index during the 
  8.1   previous fiscal year, as determined under paragraphs (d) and (e) 
  8.2   of this subdivision. 
  8.3      (c) On the first day of January in each even-numbered year, 
  8.4   the salaries for the positions listed in paragraph (a) are 
  8.5   increased by the lesser of the average of the general salary 
  8.6   adjustments for state employees in the previous fiscal year or 
  8.7   the percentage increase in the Consumer Price Index during the 
  8.8   previous fiscal year, as determined under paragraphs (d) and (e) 
  8.9   of this subdivision. 
  8.10     (d) By September 1 of each even-numbered year, the 
  8.11  commissioner of employee relations shall calculate the average 
  8.12  of the general salary adjustments provided by negotiated 
  8.13  collective bargaining agreements or arbitration awards ratified 
  8.14  by the legislature in the previous legislative session.  
  8.15  Negotiated collective bargaining agreements or arbitration 
  8.16  awards that do not include general salary adjustments may not be 
  8.17  included in these calculations.  The commissioner shall weight 
  8.18  the general salary adjustments by the number of full-time 
  8.19  equivalent employees covered by each agreement or arbitration 
  8.20  award.  The commissioner shall calculate the average general 
  8.21  salary adjustment for each fiscal year covered by the agreements 
  8.22  or arbitration awards.  The results of these calculations must 
  8.23  be expressed as percentages, rounded to the nearest one-tenth of 
  8.24  one percent. 
  8.25     (e) By September 1 of each year the commissioner shall 
  8.26  calculate the change in the Consumer Price Index for all urban 
  8.27  consumers, United States city average for the period beginning 
  8.28  with June of the previous year and ending with June of the 
  8.29  current year. 
  8.30     (f) The commissioner shall calculate the new salaries for 
  8.31  the positions listed in paragraph (a) using the applicable 
  8.32  percentages from the calculations in paragraphs (d) and (e) and 
  8.33  report them to the speaker of the house, the president of the 
  8.34  senate, the chief justice of the supreme court, and the governor.
  8.35     Sec. 10.  Minnesota Statutes 1996, section 43A.17, 
  8.36  subdivision 1, is amended to read: 
  9.1      Subdivision 1.  [SALARY LIMITS.] As used in subdivisions 1 
  9.2   to 9, "salary" means hourly, monthly, or annual rate of pay 
  9.3   including any lump-sum payments and cost-of-living adjustment 
  9.4   increases but excluding payments due to overtime worked, shift 
  9.5   or equipment differentials, work out of class as required by 
  9.6   collective bargaining agreements or plans established under 
  9.7   section 43A.18, and back pay on reallocation or other payments 
  9.8   related to the hours or conditions under which work is performed 
  9.9   rather than to the salary range or rate to which a class is 
  9.10  assigned.  For presidents of state universities, "salary" does 
  9.11  not include a housing allowance provided through a compensation 
  9.12  plan approved under section 43A.18, subdivision 3a. 
  9.13     The salary, as established in section 15A.081 15A.0815, of 
  9.14  the head of a state agency in the executive branch is the upper 
  9.15  limit on the salaries of individual employees in the agency.  
  9.16  The salary of the commissioner of labor and industry is the 
  9.17  upper limit of salaries of employees in the bureau of mediation 
  9.18  services.  However, if an agency head is assigned a salary that 
  9.19  is lower than the current salary of another agency employee, the 
  9.20  employee retains the salary, but may not receive an increase in 
  9.21  salary as long as the salary is above that of the agency head.  
  9.22  The commissioner may grant exemptions from these upper limits as 
  9.23  provided in subdivisions 3 and 4. 
  9.24     Sec. 11.  Minnesota Statutes 1996, section 43A.17, 
  9.25  subdivision 3, is amended to read: 
  9.26     Subd. 3.  [UNUSUAL EMPLOYMENT SITUATIONS.] Upon the request 
  9.27  of the appointing authority, and when the commissioner 
  9.28  determines that changes in employment situations create 
  9.29  difficulties in attracting or retaining employees, the 
  9.30  commissioner may approve an unusual employment situation 
  9.31  increase to advance an employee within the compensation plan.  
  9.32  Such The action will must be consistent with applicable 
  9.33  provisions of collective bargaining agreements or plans pursuant 
  9.34  to adopted under section 43A.18.  The commissioner shall review 
  9.35  each proposal giving due consideration to salary rates paid to 
  9.36  other employees in the same class and agency and may approve any 
 10.1   request which in the commissioner's judgment is in the best 
 10.2   interest of the state. If the commissioner determines that the 
 10.3   position requires special expertise necessitating a higher 
 10.4   salary to attract or retain qualified persons, the commissioner 
 10.5   may grant an exemption not to exceed 120 percent of the base 
 10.6   salary of the head of the agency or the maximum rate established 
 10.7   for the position, whichever is less.  
 10.8      Sec. 12.  Minnesota Statutes 1996, section 43A.18, 
 10.9   subdivision 4, is amended to read: 
 10.10     Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
 10.11  COMMISSIONER.] (a) Notwithstanding any other law to the 
 10.12  contrary, terms and conditions of employment for employees 
 10.13  listed in this subdivision must be set by appointing authorities 
 10.14  within the limits of compensation plans that have been approved 
 10.15  by the commissioner before becoming effective.  Compensation 
 10.16  plans established under paragraphs paragraph (c) and (d), must 
 10.17  be reviewed and approved, modified, or rejected by the 
 10.18  legislature and the legislative commission on employee relations 
 10.19  under section 3.855, subdivision 2, before becoming effective. 
 10.20     (b) Total compensation for employees who are not covered by 
 10.21  a collective bargaining agreement in the offices of the 
 10.22  governor, lieutenant governor, attorney general, secretary of 
 10.23  state, state auditor, and state treasurer must be determined by 
 10.24  the governor, lieutenant governor, attorney general, secretary 
 10.25  of state, state auditor, and state treasurer, respectively.  
 10.26     (c) Total compensation for classified administrative law 
 10.27  judges in the office of administrative hearings must be 
 10.28  determined by the chief administrative law judge.  
 10.29     (d) Total compensation for unclassified positions not 
 10.30  covered by a collective bargaining agreement in the higher 
 10.31  education services office must be determined by the higher 
 10.32  education services office. 
 10.33     Sec. 13.  Minnesota Statutes 1996, section 43A.18, 
 10.34  subdivision 5, is amended to read: 
 10.35     Subd. 5.  [GOVERNOR APPOINTING AUTHORITIES TO RECOMMEND 
 10.36  CERTAIN SALARIES.] (a) The governor shall, by July 1 of each 
 11.1   odd-numbered year, or other appropriate appointing authority, 
 11.2   may submit to the legislative coordinating commission on 
 11.3   employee relations recommendations for salaries within the 
 11.4   salary range limits for the positions listed in section 15A.081, 
 11.5   subdivisions 1 and 7 15A.0815, subdivisions 3 to 5.  The 
 11.6   governor An appointing authority may also propose additions or 
 11.7   deletions of positions from those listed.  
 11.8      (b) Before submitting the recommendations, the governor 
 11.9   appointing authority shall consult with the commissioner of 
 11.10  administration, the commissioner of finance, and the 
 11.11  commissioner of employee relations concerning the 
 11.12  recommendations.  
 11.13     (c) In making recommendations, the governor appointing 
 11.14  authority shall consider the criteria established in subdivision 
 11.15  8 and the performance of individual incumbents.  The performance 
 11.16  evaluation must include a review of an incumbent's progress 
 11.17  toward attainment of affirmative action goals.  The governor 
 11.18  appointing authority shall establish an objective system for 
 11.19  quantifying knowledge, abilities, duties, responsibilities, and 
 11.20  accountabilities and in determining recommendations rate each 
 11.21  position by this system.  
 11.22     (d) Before the governor's appointing authority's 
 11.23  recommended salaries take effect, the recommendations must be 
 11.24  reviewed and approved, rejected, or modified by the 
 11.25  legislative coordinating commission on employee relations and 
 11.26  the legislature under section 3.855, subdivision 2 3.  The 
 11.27  governor may also at any time propose changes in the salary rate 
 11.28  of any positions covered by this subdivision, which must be 
 11.29  submitted and approved in the same manner as provided in this 
 11.30  subdivision.  If the commission fails to reject or modify salary 
 11.31  recommendations of the governor within 30 calendar days of their 
 11.32  receipt, the recommendations are deemed to be approved.  
 11.33     (e) The governor appointing authority shall set the initial 
 11.34  salary of a head of a new agency or a chair of a new 
 11.35  metropolitan board or commission whose salary is not 
 11.36  specifically prescribed by law after consultation with the 
 12.1   commissioner, whose recommendation is advisory only.  The amount 
 12.2   of the new salary must be comparable to the salary of an agency 
 12.3   head or commission chair having similar duties and 
 12.4   responsibilities. 
 12.5      (f) The salary of a newly appointed head of an agency or 
 12.6   chair of a metropolitan agency listed in section 15A.081, 
 12.7   subdivision 1 or 7 15A.0815, subdivisions 2 to 4, may be 
 12.8   increased or decreased by the governor, or other appropriate 
 12.9   appointing authority, from the salary previously set for that 
 12.10  position within 30 days of the new appointment after 
 12.11  consultation with the commissioner.  If the governor, or other 
 12.12  appropriate appointing authority, increases a salary under this 
 12.13  paragraph, the governor appointing authority shall submit the 
 12.14  new salary to the legislative coordinating commission on 
 12.15  employee relations and the full legislature for approval, 
 12.16  modification, or rejection under section 3.855, subdivision 2 
 12.17  3.  If the commission fails to reject or modify salary 
 12.18  recommendations of the governor within 30 calendar days of their 
 12.19  receipt, the recommendations are deemed to be approved. 
 12.20     Sec. 14.  Minnesota Statutes 1996, section 85A.02, 
 12.21  subdivision 5a, is amended to read: 
 12.22     Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
 12.23  administrator who shall serve as the executive secretary and 
 12.24  principal administrative officer of the board and, subject to 
 12.25  its approval, the administrator shall operate the Minnesota 
 12.26  zoological garden and enforce all rules and policy decisions of 
 12.27  the board.  The administrator must be chosen solely on the basis 
 12.28  of training, experience, and other qualifications appropriate to 
 12.29  the field of zoo management and development.  The board shall 
 12.30  set the compensation for salary of the administrator within the 
 12.31  limits established for the commissioner of agriculture in 
 12.32  section 15A.081, subdivision 1.  The salary of the administrator 
 12.33  may not exceed 85 percent of the salary of the governor.  The 
 12.34  administrator shall perform duties assigned by the board 
 12.35  and shall serve serves in the unclassified service at the 
 12.36  pleasure of the board.  The administrator, with the 
 13.1   participation of the board, shall appoint a development director 
 13.2   in the unclassified service or contract with a development 
 13.3   consultant to establish mechanisms to foster community 
 13.4   participation in and community support for the Minnesota 
 13.5   zoological garden.  The board may employ other necessary 
 13.6   professional, technical, and clerical personnel.  Employees of 
 13.7   the zoological garden are eligible for salary supplement in the 
 13.8   same manner as employees of other state agencies.  The 
 13.9   commissioner of finance shall determine the amount of salary 
 13.10  supplement based on available funds. 
 13.11     (b) The board may contract with individuals to perform 
 13.12  professional services and may contract for the purchases of 
 13.13  necessary species exhibits, supplies, services, and equipment. 
 13.14  The board may also contract for the construction and operation 
 13.15  of entertainment facilities on the zoo grounds that are not 
 13.16  directly connected to ordinary functions of the zoological 
 13.17  garden.  The zoo board shall may not enter into any a final 
 13.18  agreement for construction of any an entertainment facility that 
 13.19  is not directly connected to the ordinary functions of the zoo 
 13.20  until after final construction plans have been submitted to the 
 13.21  chairs of the senate finance and house appropriations committees 
 13.22  for their recommendations. 
 13.23     The zoo may not contract for entertainment during the 
 13.24  period of the Minnesota state fair that would directly compete 
 13.25  with entertainment at the Minnesota state fair. 
 13.26     Sec. 15.  Minnesota Statutes 1996, section 298.22, 
 13.27  subdivision 1, is amended to read: 
 13.28     Subdivision 1.  (1) The office of governor shall appoint 
 13.29  the commissioner of iron range resources and rehabilitation is 
 13.30  created.  The commissioner shall be appointed by the governor 
 13.31  under the provisions of section 15.06. 
 13.32     (2) The commissioner may hold such other positions or 
 13.33  appointments as that are not incompatible with duties as 
 13.34  commissioner of iron range resources and rehabilitation.  The 
 13.35  commissioner may appoint a deputy commissioner.  All expenses of 
 13.36  the commissioner, including the payment of such assistance as 
 14.1   may be necessary, shall must be paid out of the amounts 
 14.2   appropriated by section 298.28.  The compensation salary of the 
 14.3   commissioner shall must be set by the legislative coordinating 
 14.4   commission and may not exceed the maximum salary set for the 
 14.5   commissioner of administration under section 15A.081, 
 14.6   subdivision 1 75 percent of the salary of the governor.  
 14.7      (3) When the commissioner shall determine determines that 
 14.8   distress and unemployment exists or may exist in the future in 
 14.9   any county by reason of the removal of natural resources or a 
 14.10  possibly limited use thereof of natural resources in the future 
 14.11  and the any resulting decrease in employment resulting 
 14.12  therefrom, now or hereafter, the commissioner may use such 
 14.13  whatever amounts of the appropriation made to the commissioner 
 14.14  of revenue in section 298.28 as that are determined to be 
 14.15  necessary and proper in the development of the remaining 
 14.16  resources of said the county and in the vocational training and 
 14.17  rehabilitation of its residents, except that the amount needed 
 14.18  to cover cost overruns awarded to a contractor by an arbitrator 
 14.19  in relation to a contract awarded by the commissioner or in 
 14.20  effect after July 1, 1985, is appropriated from the general 
 14.21  fund.  For the purposes of this section, "development of 
 14.22  remaining resources" includes, but is not limited to, the 
 14.23  promotion of tourism. 
 14.24     Sec. 16.  Minnesota Statutes 1996, section 349A.02, 
 14.25  subdivision 1, is amended to read: 
 14.26     Subdivision 1.  [DIRECTOR.] A state lottery is established 
 14.27  under the supervision and control of the director of the state 
 14.28  lottery appointed by the governor with the advice and consent of 
 14.29  the senate.  The director must be qualified by experience and 
 14.30  training in the operation of a lottery to supervise the 
 14.31  lottery.  The director serves in the unclassified service.  The 
 14.32  annual salary rate authorized for the director is equal to 80 85 
 14.33  percent of the salary rate prescribed for the governor as of the 
 14.34  effective date of Laws 1993, chapter 146. 
 14.35     Sec. 17.  [SALARIES OF CONSTITUTIONAL OFFICERS, 
 14.36  LEGISLATORS, AND JUDGES.] 
 15.1      (a) The salaries of constitutional officers are increased 
 15.2   by 2.5 percent effective July 1, 1997, and by 2.5 percent 
 15.3   effective January 1, 1998. 
 15.4      (b) The salaries of legislators are increased by 5.0 
 15.5   percent effective January 4, 1999. 
 15.6      (c) The salaries of the judges of the supreme court, court 
 15.7   of appeals, and district court are increased by 6.0 percent 
 15.8   effective July 1, 1997, and by 6.0 percent effective January 1, 
 15.9   1998. 
 15.10     (d) Effective January 4, 1999, the salaries of judges of 
 15.11  the supreme court, court of appeals, and district court, the 
 15.12  governor, lieutenant governor, attorney general, state auditor, 
 15.13  secretary of state, and state treasurer are increased by the 
 15.14  average of the general salary adjustments for state employees in 
 15.15  fiscal year 1998 provided by negotiated collective bargaining 
 15.16  agreements or arbitration awards ratified by the legislature in 
 15.17  the 1998 legislative session. 
 15.18     (e) Effective January 1, 2000, the salaries of judges of 
 15.19  the supreme court, court of appeals, and district court and the 
 15.20  governor, lieutenant governor, attorney general, state auditor, 
 15.21  secretary of state, and state treasurer are increased by the 
 15.22  average of the general salary adjustments for state employees in 
 15.23  fiscal year 1999 provided by negotiated collective bargaining 
 15.24  agreements or arbitration awards ratified by the legislature in 
 15.25  the 1998 legislative session. 
 15.26     (f) The commissioner of employee relations shall calculate 
 15.27  the average of the general salary adjustments provided by 
 15.28  negotiated collective bargaining agreements or arbitration 
 15.29  awards ratified by the legislature in the 1998 legislative 
 15.30  session.  Negotiated collective bargaining agreements or 
 15.31  arbitration awards that do not include general salary 
 15.32  adjustments may not be included in these calculations.  The 
 15.33  commissioner shall weight the general salary adjustments by the 
 15.34  number of full-time equivalent employees covered by each 
 15.35  agreement or arbitration award.  The commissioner shall 
 15.36  calculate the average general salary adjustment for each fiscal 
 16.1   year covered by the agreements or arbitration awards.  The 
 16.2   results of these calculations must be expressed as percentages, 
 16.3   rounded to the nearest one-tenth of one percent.  The 
 16.4   commissioner shall calculate the new salaries for the positions 
 16.5   listed in paragraphs (d) and (e) using the applicable 
 16.6   percentages from the calculations in this paragraph and report 
 16.7   them to the speaker of the house, the president of the senate, 
 16.8   the chief justice of the supreme court, and the governor. 
 16.9      Sec. 18.  [PHASE-IN OF SALARY INCREASES.] 
 16.10     (a) Notwithstanding Minnesota Statutes, section 15A.083, 
 16.11  subdivision 6a, the salary of an administrative law judge in the 
 16.12  classified service employed by the office of administrative 
 16.13  hearings is 85 percent of the salary of a district court judge 
 16.14  as set under Minnesota Statutes, section 15A.082, effective 
 16.15  January 1, 1997.  After June 30, 1998, the salary of an 
 16.16  administrative law judge in the classified service employed by 
 16.17  the office of administrative hearings is governed by Minnesota 
 16.18  Statutes, section 15A.083, subdivision 6a.  If an employee's 
 16.19  current salary exceeds the salary provided by this subdivision, 
 16.20  the employee retains that salary, but may not receive a salary 
 16.21  increase until the salary provided by this section exceeds the 
 16.22  employee's current salary. 
 16.23     (b) Notwithstanding Minnesota Statutes, section 15A.083, 
 16.24  subdivision 6a, the salary of the assistant chief administrative 
 16.25  law judge and the administrative law judge supervisor in the 
 16.26  office of administrative hearings is 90 percent of the salary of 
 16.27  a district court judge as set under Minnesota Statutes, section 
 16.28  15A.082, effective January 1, 1997.  After June 30, 1998, the 
 16.29  salary of the assistant chief administrative law judge and the 
 16.30  administrative law judge supervisor is governed by Minnesota 
 16.31  Statutes, section 15A.083, subdivision 6a.  If an employee's 
 16.32  current salary exceeds the salary provided by this subdivision, 
 16.33  the employee retains the salary, but may not receive a salary 
 16.34  increase until the salary provided by this section exceeds the 
 16.35  employee's current salary. 
 16.36     (c) Notwithstanding Minnesota Statutes, section 15A.083, 
 17.1   subdivision 7, the salary of compensation judges is 85 percent 
 17.2   of the salary of a district court judge as set under Minnesota 
 17.3   Statutes, section 15A.082, effective January 1, 1997.  After 
 17.4   June 30, 1998, the salary of compensation judges is governed by 
 17.5   Minnesota Statutes, section 15A.083, subdivision 7. 
 17.6      Sec. 19.  [REVISOR INSTRUCTION.] 
 17.7      The revisor of statutes shall substitute the reference 
 17.8   "section 15A.0815" for each reference to sections 15A.081, 
 17.9   subdivisions 1, 7, and 7b, wherever they occur in the next 
 17.10  edition of Minnesota Statutes and Minnesota Rules. 
 17.11     Sec. 20.  [REPEALER.] 
 17.12     Minnesota Statutes 1996, section 15A.081, subdivisions 1 
 17.13  and 7, are repealed. 
 17.14     Sec. 21.  [EFFECTIVE DATE.] 
 17.15     Sections 1 to 5, 7, 8, 10, 13 to 16, and 20 are effective 
 17.16  January 1, 1997.  Section 12 is effective July 1, 1997.  Section 
 17.17  9 is effective July 1, 2000.  Sections 6, 11, 17, and 18 are 
 17.18  effective the day following final enactment.