Bill Text: MN HF192 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Reinventing Government Employment Act proposed, public employee compensation freeze and method for determining future compensation determined, state employee gainsharing system established, and state contracts with private vendors restrictions removed.
Sponsorship: Partisan Bill (Republican 4)
Status: (Introduced - Dead) 2011-02-14 - Committee report, to pass as amended and re-refer to State Government Finance [HF192 Detail]
Download: Minnesota-2011-HF192-Engrossed.html
1.2relating to state government; proposing the Reinventing Government
1.3Employment Act; providing a public employee compensation freeze and a
1.4method for determining future compensation; establishing a state employee
1.5gainsharing system; removing restrictions on state contracts with private vendors;
1.6amending Minnesota Statutes 2010, sections 16C.08, subdivision 2; 16C.09;
1.743A.20; proposing coding for new law in Minnesota Statutes, chapters 15; 15A;
1.816A; repealing Minnesota Statutes 2010, sections 16C.085; 43A.047; 179A.23.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. CITATION.
1.13This act may be known as the Reinventing Government Employment Act.
1.16 Section 1. [15A.25] STATE EMPLOYEE COMPENSATION.
1.17 Subdivision 1. Compensation freeze. (a) From the effective date of this section
1.18until implementation of compensation required under subdivision 2, a legislative or
1.19executive branch employer must not increase the compensation of any employee.
1.20This subdivision prohibits any increase including, but not limited to, across-the-board
1.21increases; cost-of-living adjustments; increases based on longevity; increases as a result of
1.22step and lane changes; increases in the form of lump-sum payments; increases in employer
1.23contributions to deferred compensation plans; and any increase in employer contributions
1.24toward the cost of medical, dental, life, or other insurance.
2.1(b) This subdivision does not prohibit:
2.2(1) an increase in the rate of salary and wages for an employee who is promoted or
2.3transferred to a position with greater job responsibilities; or
2.4(2) an increase in the employer contribution to a public pension plan, if required
2.5by other law.
2.6 Subd. 2. Future compensation. (a) The commissioner of management and budget
2.7must contract for a compensation study for legislative and executive branch position
2.8descriptions. The study must compare the total compensation, including salary and
2.9benefits, of each position description with positions in the private sector in which the skill,
2.10effort, responsibilities, and working conditions are similar. The commissioner must report
2.11the results of the study by March 1, 2012.
2.12(b) By July 1, 2012, each legislative and executive branch employer must implement
2.13compensation for each position for its employees that, as nearly as practicable, is
2.14comparable to the compensation of private sector positions with similar skill, effort,
2.15responsibilities, and working conditions, as determined by the commissioner under
2.16paragraph (a).
2.17 Subd. 3. Contracts in effect. This section does not prohibit a change in
2.18compensation required by a contract or collective bargaining agreement in effect before
2.19the effective date of this section. However, an employer may not:
2.20(1) enter into a new contract or collective bargaining agreement that changes
2.21compensation in a manner that conflicts with this section; or
2.22(2) extend an expired contract or collective bargaining agreement or any other
2.23arrangement that conflicts with this section.
2.24 Subd. 4. Relation to other law. This section supersedes chapter 179A and any
2.25other law to the contrary. It is not an unfair labor practice under chapter 179A for a public
2.26employer to take any action required to comply with this section. Executive branch
2.27employees may not legally strike due to an employer's action that is required to comply
2.28with this section. Neither an employer nor an exclusive representative may request interest
2.29arbitration regarding any element of compensation prescribed by this section, and an
2.30arbitrator may not issue an award that would conflict with this section.
2.31 Subd. 5. Executive branch. For purposes of this section, "executive branch" has
2.32the meaning given in section 43A.02, but does not include the Minnesota State Colleges
2.33and Universities.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
3.3 Section 1. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
3.4The commissioner shall establish a program to provide onetime bonus compensation
3.5to state employees for efforts made to reduce the costs of operating state government or for
3.6ways of providing better or more efficient state services. The commissioner may make a
3.7onetime award to an employee or group of employees whose suggestion or involvement in
3.8a project is determined by the commissioner to have resulted in documented cost-savings
3.9to the state. The maximum award is ten percent of the documented savings in the
3.10first fiscal year in which the savings are realized. The award must be paid from the
3.11appropriation to which the savings accrued.
3.14 Section 1. [15.062] COST-EFFECTIVE PROVISION OF SERVICES.
3.15(a) The head or governing board of each state department or agency, including the
3.16Minnesota state colleges and universities, must carry out the agency's powers and duties
3.17in the most cost-effective manner possible. The agency head or governing board must
3.18determine if the most cost-effective manner of carrying out each of the agency's powers
3.19and duties is to hire state employees or to contract with outside sources.
3.20(b) If an agency decides to seek an outside vendor to perform work currently done
3.21by state employees, the agency must permit groups of state employees to compete for the
3.22business by submitting responses to the agency's solicitation documents. Notwithstanding
3.23section 16A.127 or any other law to the contrary, no statewide or agency indirect costs
3.24may be assessed to a group of agency employees with respect to work performed under
3.25a contract awarded to a group of employees under this section. This section supersedes
3.26any provision of law preventing a state agency from entering into a contract with a state
3.27employee.
3.28 Sec. 2. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
3.29 Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
3.30a professional or technical services contract valued in excess of $5,000, it must provide
3.31the following:
4.1 (1) a description of how the proposed contract or amendment is necessary and
4.2reasonable to advance the statutory mission of the agency;
4.3 (2) a description of the agency's plan to notify firms or individuals who may be
4.4available to perform the services called for in the solicitation;
4.5 (3) a description of the performance measures or other tools, including accessibility
4.6measures if applicable, that will be used to monitor and evaluate contract performance; and
4.7 (4) an explanation detailing, if applicable, why this procurement is being pursued
4.8unilaterally by the agency and not as an enterprise procurement.
4.9 (b) In addition to paragraph (a), the agency must certify that:
4.10(1) no current state employee is able and available to perform the services called
4.11for by the contract;
4.12(2) (1) the normal competitive bidding mechanisms will not provide for adequate
4.13performance of the services;
4.14(3) (2) reasonable efforts will be made to publicize the availability of the contract
4.15to the public;
4.16(4) (3) the agency will develop and implement a written plan providing for the
4.17assignment of specific agency personnel to manage the contract, including a monitoring
4.18and liaison function, the periodic review of interim reports or other indications of past
4.19performance, and the ultimate utilization of the final product of the services;
4.20(5) (4) the agency will not allow the contractor to begin work before the contract is
4.21fully executed unless an exception under section16C.05, subdivision 2a , has been granted
4.22by the commissioner and funds are fully encumbered;
4.23(6) (5) the contract will not establish an employment relationship between the state
4.24or the agency and any persons performing under the contract; and
4.25(7) (6) in the event the results of the contract work will be carried out or continued
4.26by state employees upon completion of the contract, the contractor is required to include
4.27state employees in development and training, to the extent necessary to ensure that after
4.28completion of the contract, state employees can perform any ongoing work related to the
4.29same function; and
4.30(8) the agency will not contract out its previously eliminated jobs for four years
4.31without first considering the same former employees who are on the seniority unit layoff
4.32list who meet the minimum qualifications determined by the agency.
4.33 (c) A contract establishes an employment relationship for purposes of paragraph (b),
4.34clause(6) (5), if, under federal laws governing the distinction between an employee and
4.35an independent contractor, a person would be considered an employee.
5.1 Sec. 3. Minnesota Statutes 2010, section 16C.09, is amended to read:
5.216C.09 PROCEDURE FOR SERVICE CONTRACTS.
5.3(a) Before entering into or approving a service contract, the commissioner must
5.4determine, at least, that:
5.5(1) no current state employee is able and available to perform the services called
5.6for by the contract;
5.7(2) (1) the work to be performed under the contract is necessary to the agency's
5.8achievement of its statutory responsibilities and there is statutory authority to enter into
5.9the contract;
5.10(3) (2) the contract will not establish an employment relationship between the state
5.11or the agency and any persons performing under the contract;
5.12(4) (3) the contractor and agents are not employees of the state, except as authorized
5.13in section 15.062;
5.14(5) (4) the contracting agency has specified a satisfactory method of evaluating and
5.15using the results of the work to be performed; and
5.16(6) (5) the combined contract and amendments will not exceed five years without
5.17specific, written approval by the commissioner according to established policy, procedures,
5.18and standards, or unless otherwise provided for by law. The term of the original contract
5.19must not exceed two years, unless the commissioner determines that a longer duration is
5.20in the best interest of the state.
5.21(b) For purposes of paragraph (a), clause (1), employees are available if qualified
5.22and:
5.23(1) are already doing the work in question; or
5.24(2) are on layoff status in classes that can do the work in question.
5.25An employee is not available if the employee is doing other work, is retired, or has decided
5.26not to do the work in question.
5.27(c) (b) This section does not apply to an agency's use of inmates pursuant to sections
5.28241.20
to
241.23 or to an agency's use of persons required by a court to provide:
5.29(1) community service; or
5.30(2) conservation or maintenance services on lands under the jurisdiction and control
5.31of the state.
5.32 Sec. 4. REPEALER.
5.33Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.
6.3 Section 1. Minnesota Statutes 2010, section 43A.20, is amended to read:
6.443A.20 PERFORMANCE APPRAISAL AND PAY.
6.5(a) The commissioner shall design and maintain a performance appraisal and bonus
6.6pay system under which each employee in the civil service in the executive branch shall
6.7be evaluated and counseled on work performance at least once a year. The performance
6.8appraisal and bonus pay system must include three components:
6.9(1) evaluation of the individual employee's performance relative to goals for that
6.10individual;
6.11(2) evaluation of the performance of the individual employee's program, defined by
6.12the agency head, toward meeting targeted outcomes for the program; and
6.13(3) evaluation of the performance of the entire agency toward meeting targeted
6.14outcomes for the agency.
6.15(b) Individual pay increases for all employeesnot represented by an exclusive
6.16representative certified pursuant to chapter 179A shall be based on the evaluation
6.17evaluations required by paragraph (a) and other factors consistent with paragraph (a) that
6.18the commissioner negotiates in collective bargaining agreements or includes in the plans
6.19developed pursuant to section43A.18 . Collective bargaining agreements entered into
6.20pursuant to chapter 179A may, and are encouraged to, provide for pay increases based
6.21on employee work performance. An employee in the executive branch may not receive
6.22an increase in salary or wages based on cost of living or progression to another step or
6.23lane unless the employee's supervisor certifies that the employee's individual performance
6.24has been satisfactory and justifies spending additional public funds on the employee's
6.25compensation.
6.26(c) This section supersedes any conflicting provision of other law.
6.27EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
6.28by a collective bargaining agreement, this section applies to collective bargaining
6.29agreements entered into on or after that date.
6.30 Sec. 2. SALARY FOR UPCOMING BIENNIUM.
6.31During the biennium ending June 30, 2013, each executive branch appointing
6.32authority shall construct a performance bonus component as part of overall compensation
6.33earned during that biennium. Under the performance bonus component, at least five
7.1percent of the total base salary and wages otherwise payable to an employee may be
7.2paid only after completion of the performance appraisal conducted under Minnesota
7.3Statutes, section 43A.20, paragraph (a), and upon the appointing authority's determination
7.4that the employee's performance has been satisfactory and justifies spending additional
7.5public funds on the employee's compensation.
7.6This section supersedes any conflicting provision of other law.
7.7EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
7.8by a collective bargaining agreement, this section applies to collective bargaining
7.9agreements entered into on or after that date.
1.3Employment Act; providing a public employee compensation freeze and a
1.4method for determining future compensation; establishing a state employee
1.5gainsharing system; removing restrictions on state contracts with private vendors;
1.6amending Minnesota Statutes 2010, sections 16C.08, subdivision 2; 16C.09;
1.743A.20; proposing coding for new law in Minnesota Statutes, chapters 15; 15A;
1.816A; repealing Minnesota Statutes 2010, sections 16C.085; 43A.047; 179A.23.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. CITATION.
1.13This act may be known as the Reinventing Government Employment Act.
1.16 Section 1. [15A.25] STATE EMPLOYEE COMPENSATION.
1.17 Subdivision 1. Compensation freeze. (a) From the effective date of this section
1.18until implementation of compensation required under subdivision 2, a legislative or
1.19executive branch employer must not increase the compensation of any employee.
1.20This subdivision prohibits any increase including, but not limited to, across-the-board
1.21increases; cost-of-living adjustments; increases based on longevity; increases as a result of
1.22step and lane changes; increases in the form of lump-sum payments; increases in employer
1.23contributions to deferred compensation plans; and any increase in employer contributions
1.24toward the cost of medical, dental, life, or other insurance.
2.1(b) This subdivision does not prohibit:
2.2(1) an increase in the rate of salary and wages for an employee who is promoted or
2.3transferred to a position with greater job responsibilities; or
2.4(2) an increase in the employer contribution to a public pension plan, if required
2.5by other law.
2.6 Subd. 2. Future compensation. (a) The commissioner of management and budget
2.7must contract for a compensation study for legislative and executive branch position
2.8descriptions. The study must compare the total compensation, including salary and
2.9benefits, of each position description with positions in the private sector in which the skill,
2.10effort, responsibilities, and working conditions are similar. The commissioner must report
2.11the results of the study by March 1, 2012.
2.12(b) By July 1, 2012, each legislative and executive branch employer must implement
2.13compensation for each position for its employees that, as nearly as practicable, is
2.14comparable to the compensation of private sector positions with similar skill, effort,
2.15responsibilities, and working conditions, as determined by the commissioner under
2.16paragraph (a).
2.17 Subd. 3. Contracts in effect. This section does not prohibit a change in
2.18compensation required by a contract or collective bargaining agreement in effect before
2.19the effective date of this section. However, an employer may not:
2.20(1) enter into a new contract or collective bargaining agreement that changes
2.21compensation in a manner that conflicts with this section; or
2.22(2) extend an expired contract or collective bargaining agreement or any other
2.23arrangement that conflicts with this section.
2.24 Subd. 4. Relation to other law. This section supersedes chapter 179A and any
2.25other law to the contrary. It is not an unfair labor practice under chapter 179A for a public
2.26employer to take any action required to comply with this section. Executive branch
2.27employees may not legally strike due to an employer's action that is required to comply
2.28with this section. Neither an employer nor an exclusive representative may request interest
2.29arbitration regarding any element of compensation prescribed by this section, and an
2.30arbitrator may not issue an award that would conflict with this section.
2.31 Subd. 5. Executive branch. For purposes of this section, "executive branch" has
2.32the meaning given in section 43A.02, but does not include the Minnesota State Colleges
2.33and Universities.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
3.3 Section 1. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
3.4The commissioner shall establish a program to provide onetime bonus compensation
3.5to state employees for efforts made to reduce the costs of operating state government or for
3.6ways of providing better or more efficient state services. The commissioner may make a
3.7onetime award to an employee or group of employees whose suggestion or involvement in
3.8a project is determined by the commissioner to have resulted in documented cost-savings
3.9to the state. The maximum award is ten percent of the documented savings in the
3.10first fiscal year in which the savings are realized. The award must be paid from the
3.11appropriation to which the savings accrued.
3.14 Section 1. [15.062] COST-EFFECTIVE PROVISION OF SERVICES.
3.15(a) The head or governing board of each state department or agency, including the
3.16Minnesota state colleges and universities, must carry out the agency's powers and duties
3.17in the most cost-effective manner possible. The agency head or governing board must
3.18determine if the most cost-effective manner of carrying out each of the agency's powers
3.19and duties is to hire state employees or to contract with outside sources.
3.20(b) If an agency decides to seek an outside vendor to perform work currently done
3.21by state employees, the agency must permit groups of state employees to compete for the
3.22business by submitting responses to the agency's solicitation documents. Notwithstanding
3.23section 16A.127 or any other law to the contrary, no statewide or agency indirect costs
3.24may be assessed to a group of agency employees with respect to work performed under
3.25a contract awarded to a group of employees under this section. This section supersedes
3.26any provision of law preventing a state agency from entering into a contract with a state
3.27employee.
3.28 Sec. 2. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
3.29 Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
3.30a professional or technical services contract valued in excess of $5,000, it must provide
3.31the following:
4.1 (1) a description of how the proposed contract or amendment is necessary and
4.2reasonable to advance the statutory mission of the agency;
4.3 (2) a description of the agency's plan to notify firms or individuals who may be
4.4available to perform the services called for in the solicitation;
4.5 (3) a description of the performance measures or other tools, including accessibility
4.6measures if applicable, that will be used to monitor and evaluate contract performance; and
4.7 (4) an explanation detailing, if applicable, why this procurement is being pursued
4.8unilaterally by the agency and not as an enterprise procurement.
4.9 (b) In addition to paragraph (a), the agency must certify that:
4.10
4.11
4.12
4.13performance of the services;
4.14
4.15to the public;
4.16
4.17assignment of specific agency personnel to manage the contract, including a monitoring
4.18and liaison function, the periodic review of interim reports or other indications of past
4.19performance, and the ultimate utilization of the final product of the services;
4.20
4.21fully executed unless an exception under section
4.22by the commissioner and funds are fully encumbered;
4.23
4.24or the agency and any persons performing under the contract; and
4.25
4.26by state employees upon completion of the contract, the contractor is required to include
4.27state employees in development and training, to the extent necessary to ensure that after
4.28completion of the contract, state employees can perform any ongoing work related to the
4.29same function
4.30
4.31
4.32
4.33 (c) A contract establishes an employment relationship for purposes of paragraph (b),
4.34clause
4.35an independent contractor, a person would be considered an employee.
5.1 Sec. 3. Minnesota Statutes 2010, section 16C.09, is amended to read:
5.216C.09 PROCEDURE FOR SERVICE CONTRACTS.
5.3(a) Before entering into or approving a service contract, the commissioner must
5.4determine, at least, that:
5.5
5.6
5.7
5.8achievement of its statutory responsibilities and there is statutory authority to enter into
5.9the contract;
5.10
5.11or the agency and any persons performing under the contract;
5.12
5.13in section 15.062;
5.14
5.15using the results of the work to be performed; and
5.16
5.17specific, written approval by the commissioner according to established policy, procedures,
5.18and standards, or unless otherwise provided for by law. The term of the original contract
5.19must not exceed two years, unless the commissioner determines that a longer duration is
5.20in the best interest of the state.
5.21
5.22
5.23
5.24
5.25
5.26
5.27
5.29(1) community service; or
5.30(2) conservation or maintenance services on lands under the jurisdiction and control
5.31of the state.
5.32 Sec. 4. REPEALER.
5.33Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.
6.3 Section 1. Minnesota Statutes 2010, section 43A.20, is amended to read:
6.443A.20 PERFORMANCE APPRAISAL AND PAY.
6.5(a) The commissioner shall design and maintain a performance appraisal and bonus
6.6pay system under which each employee in the civil service in the executive branch shall
6.7be evaluated and counseled on work performance at least once a year. The performance
6.8appraisal and bonus pay system must include three components:
6.9(1) evaluation of the individual employee's performance relative to goals for that
6.10individual;
6.11(2) evaluation of the performance of the individual employee's program, defined by
6.12the agency head, toward meeting targeted outcomes for the program; and
6.13(3) evaluation of the performance of the entire agency toward meeting targeted
6.14outcomes for the agency.
6.15(b) Individual pay increases for all employees
6.16
6.17evaluations required by paragraph (a) and other factors consistent with paragraph (a) that
6.18the commissioner negotiates in collective bargaining agreements or includes in the plans
6.19developed pursuant to section
6.20
6.21
6.22an increase in salary or wages based on cost of living or progression to another step or
6.23lane unless the employee's supervisor certifies that the employee's individual performance
6.24has been satisfactory and justifies spending additional public funds on the employee's
6.25compensation.
6.26(c) This section supersedes any conflicting provision of other law.
6.27EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
6.28by a collective bargaining agreement, this section applies to collective bargaining
6.29agreements entered into on or after that date.
6.30 Sec. 2. SALARY FOR UPCOMING BIENNIUM.
6.31During the biennium ending June 30, 2013, each executive branch appointing
6.32authority shall construct a performance bonus component as part of overall compensation
6.33earned during that biennium. Under the performance bonus component, at least five
7.1percent of the total base salary and wages otherwise payable to an employee may be
7.2paid only after completion of the performance appraisal conducted under Minnesota
7.3Statutes, section 43A.20, paragraph (a), and upon the appointing authority's determination
7.4that the employee's performance has been satisfactory and justifies spending additional
7.5public funds on the employee's compensation.
7.6This section supersedes any conflicting provision of other law.
7.7EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
7.8by a collective bargaining agreement, this section applies to collective bargaining
7.9agreements entered into on or after that date.
