Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2713 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to state government; updating state personnel management provisions;
3	3	1.3 amending Minnesota Statutes 2024, sections 43A.01, subdivision 3; 43A.02,
4	4	1.4 subdivision 14; 43A.04, subdivisions 1, 4, 8; 43A.05, subdivision 3; 43A.07,
5	5	1.5 subdivision 2; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9; 43A.121; 43A.15,
6	6	1.6 subdivisions 2, 3, 4, 7, 12, 14; 43A.17, subdivision 5; 43A.181, subdivision 1;
7	7	1.7 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2; 43A.24, subdivisions
8	8	1.8 1a, 2; 43A.27, subdivision 2; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6;
9	9	1.9 43A.36, subdivision 1; 43A.421; repealing Minnesota Statutes 2024, sections
10	10	1.10 43A.05, subdivision 6; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10,
11	11	1.11 12; 43A.318, subdivisions 1, 2, 4, 5.
12	12	1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
13	13	1.13 Section 1. Minnesota Statutes 2024, section 43A.01, subdivision 3, is amended to read:
14	14	1.14 Subd. 3.Equitable compensation relationships.It is the policy of this state to attempt
15	15	1.15to establish equitable compensation relationships between female-dominated,
16	16	1.16male-dominated, and balanced classes of employees in the executive branch. Compensation
17	17	1.17relationships are equitable within the meaning of this subdivision when the primary
18	18	1.18consideration in negotiating, establishing, recommending, and approving total compensation
19	19	1.19is comparability of the value of the work in relationship to other positions classifications
20	20	1.20in the executive branch.
21	21	1.21 Sec. 2. Minnesota Statutes 2024, section 43A.02, subdivision 14, is amended to read:
22	22	1.22 Subd. 14.Commissioner's Nonrepresented employees compensation
23	23	1.23plan."Commissioner's Nonrepresented employees compensation plan" means the plan
24	24	1.24required by section 3.855 regarding total compensation and terms and conditions of
25	25	1Sec. 2.
26	26	REVISOR EB/BM 25-0039401/10/25
27	27	State of Minnesota
28	28	This Document can be made available
29	29	in alternative formats upon request
30	30	HOUSE OF REPRESENTATIVES
31	31	H. F. No. 2713
32	32	NINETY-FOURTH SESSION
33	33	Authored by Klevorn03/24/2025
34	34	The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1employment, including grievance administration, for employees of the executive branch
35	35	2.2who are not otherwise provided for in this chapter or other law.
36	36	2.3 Sec. 3. Minnesota Statutes 2024, section 43A.04, subdivision 1, is amended to read:
37	37	2.4 Subdivision 1.Statewide leadership.(a) The commissioner is the chief personnel and
38	38	2.5labor relations manager of the civil service in the executive branch.
39	39	2.6 Whenever any power or responsibility is given to the commissioner by any provision
40	40	2.7of this chapter, unless otherwise expressly provided, the power or authority applies to all
41	41	2.8employees of agencies in the executive branch and to employees in classified positions in
42	42	2.9the Office of the Legislative Auditor, the Minnesota State Retirement System, the Public
43	43	2.10Employees Retirement Association, and the Teacher's Retirement Association. Unless
44	44	2.11otherwise provided by law, the power or authority does not apply to unclassified employees
45	45	2.12in the legislative and judicial branches.
46	46	2.13 (b) The commissioner shall operate an information system from which personnel data,
47	47	2.14as defined in section 13.43, concerning employees and applicants for positions in the
48	48	2.15classified service can be retrieved.
49	49	2.16 The commissioner has access to all public and private personnel data kept by appointing
50	50	2.17authorities that will aid in the discharge of the commissioner's duties.
51	51	2.18 (c) The commissioner may consider and investigate any matters concerned with the
52	52	2.19administration of provisions of this chapter, and may order any remedial actions consistent
53	53	2.20with law. The commissioner, at the request of an agency, shall provide assistance in employee
54	54	2.21misconduct investigations. Upon request of the appointing authority, the commissioner may
55	55	2.22issue determinations on personnel matters regarding board-appointed executive directors
56	56	2.23or leaders. The commissioner shall have the right to assess from the requesting agency, any
57	57	2.24costs incurred while assisting the agency in the employee misconduct investigation. Money
58	58	2.25received by the commissioner under this paragraph is appropriated to the commissioner for
59	59	2.26purposes of this paragraph.
60	60	2.27 (d) The commissioner may assess or establish and collect premiums from all state entities
61	61	2.28to cover the costs of programs under sections section 15.46 and 176.603.
62	62	2.29 Sec. 4. Minnesota Statutes 2024, section 43A.04, subdivision 4, is amended to read:
63	63	2.30 Subd. 4.Administrative procedures.The commissioner shall develop administrative
64	64	2.31procedures, which are not subject to the rulemaking provisions of the Administrative
65	65	2.32Procedure Act, to effect provisions of chapter 43A which do not directly affect the rights
66	66	2Sec. 4.
67	67	REVISOR EB/BM 25-0039401/10/25 3.1of or processes available to the general public. The commissioner may also adopt
68	68	3.2administrative procedures, not subject to the Administrative Procedure Act, which concern
69	69	3.3topics affecting the general public if those procedures concern only the internal management
70	70	3.4of the department or other agencies and if those elements of the topics which affect the
71	71	3.5general public are the subject of department rules.
72	72	3.6 Administrative procedures shall be reproduced and made available for comment in
73	73	3.7accessible digital formats under section 16E.03 to agencies, employees, and appropriate
74	74	3.8exclusive representatives certified pursuant to sections 179A.01 to 179A.25, for at least 15
75	75	3.9days prior to implementation and shall include but are not limited to:
76	76	3.10 (1) maintenance and administration of a plan of classification for all positions in the
77	77	3.11classified service and for comparisons of unclassified positions with positions in the classified
78	78	3.12service;
79	79	3.13 (2) procedures for administration of collective bargaining agreements and plans
80	80	3.14established pursuant to section 43A.18 concerning total compensation and the terms and
81	81	3.15conditions of employment for employees;
82	82	3.16 (3) procedures for effecting all personnel actions internal to the state service such as
83	83	3.17processes and requirements for agencies to publicize job openings and consider applicants
84	84	3.18who are referred or nominate themselves apply, conduct of selection procedures limited to
85	85	3.19employees, noncompetitive and qualifying appointments of employees and leaves of absence;
86	86	3.20 (4) maintenance and administration of employee performance appraisal, training and
87	87	3.21other programs; and
88	88	3.22 (5) procedures for pilots of the reengineered employee selection process. Employment
89	89	3.23provisions of this chapter, associated personnel rules adopted under subdivision 3, and
90	90	3.24administrative procedures established under clauses (1) and (3) may be waived for the
91	91	3.25purposes of these pilots. The pilots may affect the rights of and processes available to
92	92	3.26members of the general public seeking employment in the classified service. The
93	93	3.27commissioner will provide public notice of any pilot directly affecting the rights of and
94	94	3.28processes available to the general public and make the administrative procedures available
95	95	3.29for comment to the general public, agencies, employees, and appropriate exclusive
96	96	3.30representatives certified pursuant to sections 179A.01 to 179A.25 for at least 30 days prior
97	97	3.31to implementation. The commissioner must publish the public notice in an accessible digital
98	98	3.32format under section 16E.03. The commissioner must provide a comment process that allows
99	99	3.33the public to submit comments through multiple formats to ensure accessibility. These
100	100	3.34formats must include telephone, digital content, and email.
101	101	3Sec. 4.
102	102	REVISOR EB/BM 25-0039401/10/25 4.1 Sec. 5. Minnesota Statutes 2024, section 43A.04, subdivision 8, is amended to read:
103	103	4.2 Subd. 8.Donation of time.Notwithstanding any law to the contrary, the commissioner
104	104	4.3shall authorize the appointing authority to permit the donation of up to eight hours of
105	105	4.4accumulated vacation time in each year by each employee who is a member of law
106	106	4.5enforcement unit number 1, 18, or 19 to their union representative for the purpose of carrying
107	107	4.6out the duties of office.
108	108	4.7 Sec. 6. Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:
109	109	4.8 Subd. 3.Commissioner's Nonrepresented employees compensation plan.The
110	110	4.9commissioner shall periodically develop and establish pursuant to this chapter a
111	111	4.10commissioner's nonrepresented employees compensation plan. The commissioner shall
112	112	4.11submit the plan to the Legislative Coordinating Commission.
113	113	4.12 Sec. 7. Minnesota Statutes 2024, section 43A.07, subdivision 2, is amended to read:
114	114	4.13 Subd. 2.Job classes and titles.An appointing authority shall notify the commissioner
115	115	4.14when a new position is to be established in the classified service. The commissioner shall
116	116	4.15allocate the position to an appropriate class in the classification plan or if the position cannot
117	117	4.16be allocated to an existing class, establish a new class. The commissioner shall assign an
118	118	4.17appropriate salary rate or range to the class. If the class is in a bargaining unit under the
119	119	4.18provisions of section 179A.10, and there is an applicable provision in the collective
120	120	4.19bargaining agreement the commissioner shall establish the salary rate or range pursuant to
121	121	4.20the agreement.
122	122	4.21 The commissioner may independently conduct classification studies or, upon request
123	123	4.22of a permanent employee, may investigate the duties of a classified position. If a request is
124	124	4.23denied, the employee must be given a written explanation. The commissioner shall investigate
125	125	4.24the duties of a classified position upon request of an appointing authority. The commissioner
126	126	4.25may reclassify the position, change the title of the position or establish a new class. The
127	127	4.26commissioner shall assign an appropriate salary rate or range to the class. If the class is in
128	128	4.27a collective bargaining unit under the provisions of section 179A.10, and there is an
129	129	4.28applicable provision in the collective bargaining agreement, the commissioner shall establish
130	130	4.29the salary rate or range pursuant to the agreement.
131	131	4.30 Sec. 8. Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:
132	132	4.31 Subd. 1a.Additional unclassified positions.Appointing authorities for the following
133	133	4.32agencies may designate additional unclassified positions according to this subdivision: the
134	134	4Sec. 8.
135	135	REVISOR EB/BM 25-0039401/10/25 5.1Departments of Administration; Agriculture; Children, Youth, and Families; Commerce;
136	136	5.2Corrections; Education; Employment and Economic Development; Explore Minnesota
137	137	5.3Tourism; Management and Budget; Health; Human Rights; Human Services; Labor and
138	138	5.4Industry; Natural Resources; Public Safety; Revenue; Transportation; and Veterans Affairs;
139	139	5.5the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of
140	140	5.6Investment; the Office of Administrative Hearings; the Department of Information
141	141	5.7Technology Services; an agency, including the Offices of the Attorney General, Secretary
142	142	5.8of State, and State Auditor; the Minnesota State Colleges and Universities; the Minnesota
143	143	5.9Office of Higher Education; the Perpich Center for Arts Education; Direct Care and
144	144	5.10Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical Services,
145	145	5.11may designate additional unclassified positions.
146	146	5.12 A position designated by an appointing authority according to this subdivision must
147	147	5.13meet the following standards and criteria:
148	148	5.14 (1) the designation of the position would not be contrary to other law relating specifically
149	149	5.15to that agency;
150	150	5.16 (2) the person occupying the position would report directly to the agency head or deputy
151	151	5.17agency head and would be designated as part of the agency head's management team;
152	152	5.18 (3) the duties of the position would involve significant discretion and substantial
153	153	5.19involvement in the development, interpretation, and implementation of agency policy;
154	154	5.20 (4) the duties of the position would not require primarily personnel, accounting, or other
155	155	5.21technical expertise where continuity in the position would be important;
156	156	5.22 (5) there would be a need for the person occupying the position to be accountable to,
157	157	5.23loyal to, and compatible with, the governor and the agency head, the employing statutory
158	158	5.24board or commission, or the employing constitutional officer;
159	159	5.25 (6) the position would be at the level of division or bureau director or assistant to the
160	160	5.26agency head; and
161	161	5.27 (7) the commissioner has approved the designation as being consistent with the standards
162	162	5.28and criteria in this subdivision.
163	163	5.29 Sec. 9. Minnesota Statutes 2024, section 43A.08, subdivision 4, is amended to read:
164	164	5.30 Subd. 4.Length of service for student workers.A person may not only be employed
165	165	5.31as a student worker in the unclassified service under subdivision 1 for more than 36 months.
166	166	5.32Employment at a school that a student attends is not counted for purposes of this 36-month
167	167	5Sec. 9.
168	168	REVISOR EB/BM 25-0039401/10/25 6.1limit. Student workers in the Minnesota Department of Transportation SEEDS program
169	169	6.2who are actively involved in a four-year degree program preparing for a professional career
170	170	6.3job in the Minnesota Department of Transportation may be employed as a student worker
171	171	6.4for up to 48 months if they are enrolled in secondary, postsecondary, or graduate study.
172	172	6.5 Sec. 10. Minnesota Statutes 2024, section 43A.11, subdivision 9, is amended to read:
173	173	6.6 Subd. 9.Rejection Nonselection; explanation.If the appointing authority rejects does
174	174	6.7not select a member of the finalist pool who has claimed veteran's preference, the appointing
175	175	6.8authority shall notify the finalist in writing of the reasons for the rejection.
176	176	6.9 Sec. 11. Minnesota Statutes 2024, section 43A.121, is amended to read:
177	177	6.10 43A.121 RANKING OF THE APPLICANT POOL.
178	178	6.11 Applicants referred from a layoff list shall be ranked as provided in the collective
179	179	6.12bargaining agreement or plan established under section 43A.18, under which the layoff list
180	180	6.13was established. All other names in an applicant pool shall be ranked according to the
181	181	6.14veteran's preference provisions of section 43A.11, subdivision 7, and then in descending
182	182	6.15order of the number of skill matches for the vacant position. If any ties in rank remain, those
183	183	6.16names shall appear in alphabetical order.
184	184	6.17 Sec. 12. Minnesota Statutes 2024, section 43A.15, subdivision 2, is amended to read:
185	185	6.18 Subd. 2.Emergency appointments.An appointing authority may make an emergency
186	186	6.19appointment for up to 45 90 working days. No person may be employed in any one agency
187	187	6.20on an emergency basis for more than 45 90 working days in any 12-month period.
188	188	6.21 Sec. 13. Minnesota Statutes 2024, section 43A.15, subdivision 3, is amended to read:
189	189	6.22 Subd. 3.Temporary appointments.The commissioner may authorize an appointing
190	190	6.23authority to make a temporary appointment of up to six months one year. The commissioner
191	191	6.24may, in the best interest of the state, grant an extension of a temporary appointment or
192	192	6.25approve a temporary appointment to fill a vacancy created by an approved leave of absence
193	193	6.26to a maximum period of one year. When practicable, the appointing authority may search
194	194	6.27the employment database for qualified applicants or, when necessary, the commissioner
195	195	6.28may authorize the appointment of any person deemed qualified by the appointing authority.
196	196	6.29 No person shall be employed on a temporary basis in any one agency for more than 12
197	197	6.30months in any 24-month period.
198	198	6Sec. 13.
199	199	REVISOR EB/BM 25-0039401/10/25 7.1 Sec. 14. Minnesota Statutes 2024, section 43A.15, subdivision 4, is amended to read:
200	200	7.2 Subd. 4.Provisional appointments.The commissioner may authorize an appointing
201	201	7.3authority to make a provisional appointment if no applicant is suitable or available for
202	202	7.4appointment and the person to be provisionally appointed is qualified in all respects except
203	203	7.5for completion of a licensure or certification requirement.
204	204	7.6 No person shall be employed on a provisional basis for more than six months unless the
205	205	7.7commissioner grants an extension to a maximum of 12 months in the best interest of the
206	206	7.8state. No extension may be granted beyond 12 months except where there is a lack of
207	207	7.9applicants and the provisional appointee is continuing to work to complete the licensure or
208	208	7.10certification requirement.
209	209	7.11 At the request of an appointing authority, the commissioner may authorize the
210	210	7.12probationary appointment of a provisional appointee who has performed satisfactorily for
211	211	7.13at least 60 days and has completed the licensure or certification requirement.
212	212	7.14 Sec. 15. Minnesota Statutes 2024, section 43A.15, subdivision 7, is amended to read:
213	213	7.15 Subd. 7.Appointments for unclassified incumbents of newly classified positions.The
214	214	7.16commissioner may authorize the probationary appointment of an incumbent who has passed
215	215	7.17a qualifying selection process and who has served at least one year in an unclassified position
216	216	7.18which has been placed in the classified service by proper authority.
217	217	7.19 Sec. 16. Minnesota Statutes 2024, section 43A.15, subdivision 12, is amended to read:
218	218	7.20 Subd. 12.Work-training Trainee appointments.The commissioner may authorize
219	219	7.21the probationary appointment of persons who successfully complete on-the-job state training
220	220	7.22programs which that have been approved by the commissioner.
221	221	7.23 Sec. 17. Minnesota Statutes 2024, section 43A.15, subdivision 14, is amended to read:
222	222	7.24 Subd. 14.700-hour on-the-job demonstration experience.(a) The commissioner shall
223	223	7.25consult with the Department of Employment and Economic Development's Vocational
224	224	7.26Rehabilitation Services and State Services for the Blind and other disability experts in
225	225	7.27establishing, reviewing, and modifying the qualifying procedures for applicants whose
226	226	7.28disabilities are of such a significant nature that the applicants are unable to demonstrate
227	227	7.29their abilities in the selection process. The qualifying procedures must consist of up to 700
228	228	7.30hours of on-the-job demonstration experience. The 700-hour on-the-job demonstration
229	229	7.31experience is an alternative, noncompetitive hiring process for qualified applicants with
230	230	7.32disabilities. All permanent executive branch classified positions are eligible for a 700-hour
231	231	7Sec. 17.
232	232	REVISOR EB/BM 25-0039401/10/25 8.1on-the-job demonstration experience, and all permanent classified job postings must provide
233	233	8.2information regarding the on-the-job demonstration overview and certification process.
234	234	8.3 (b) The commissioner may shall authorize the probationary appointment of an applicant
235	235	8.4based on the request of the appointing authority that documents that the applicant has
236	236	8.5successfully demonstrated qualifications for the position through completion of an on-the-job
237	237	8.6demonstration experience. A qualified applicant should shall be converted to permanent,
238	238	8.7probationary appointments at the point in the 700-hour on-the-job experience when the
239	239	8.8applicant has demonstrated the ability to perform the essential functions of the job with or
240	240	8.9without reasonable accommodation. The implementation of this subdivision may not be
241	241	8.10deemed a violation of chapter 43A or 363A.
242	242	8.11 (c) The commissioner and the ADA and disability employment director, described in
243	243	8.12section 43A.19, subdivision 1, paragraph (e), are responsible for the administration and
244	244	8.13oversight of the 700-hour on-the-job demonstration experience, including the establishment
245	245	8.14of policies and procedures, data collection and reporting requirements, and compliance.
246	246	8.15 (d) The commissioner or the commissioner's designee shall design and implement a
247	247	8.16training curriculum for the 700-hour on-the-job demonstration experience. All executive
248	248	8.17leaders, managers, supervisors, human resources professionals, affirmative action officers,
249	249	8.18and ADA coordinators must receive annual training on the program.
250	250	8.19 (e) The commissioner or the commissioner's designee shall develop, administer, and
251	251	8.20make public a formal grievance process for individuals in the 700-hour on-the-job
252	252	8.21demonstration experience under this subdivision and supported work program under section
253	253	8.2243A.421, subdivision 2.
254	254	8.23 (f) An appointing authority must make reasonable accommodations in response to a
255	255	8.24request from an applicant with a disability, including providing accommodations in a timely
256	256	8.25manner during the application and hiring process and throughout the 700-hour on-the-job
257	257	8.26demonstration experience. Requirements for accessibility for public records under section
258	258	8.27363A.42, continuing education under section 363A.43, and technology under section 16E.03,
259	259	8.28subdivision 2, clauses (3) and (9), apply to an agency filling an appointment during the
260	260	8.29application and hiring process and through the on-the-job demonstration experience period.
261	261	8.30 Sec. 18. Minnesota Statutes 2024, section 43A.17, subdivision 5, is amended to read:
262	262	8.31 Subd. 5.Salary on demotion; special cases.The commissioner may, upon request of
263	263	8.32an appointing authority, approve payment of an employee with permanent status at a salary
264	264	8.33rate above the maximum of the class to which the employee is demoted. The commissioner
265	265	8Sec. 18.
266	266	REVISOR EB/BM 25-0039401/10/25 9.1shall take such action as required by collective bargaining agreements or plans pursuant to
267	267	9.2section 43A.18. If the action is justified by the employee's long or outstanding service,
268	268	9.3exceptional or technical qualifications, age, health, or substantial changes in work assignment
269	269	9.4beyond the control of the employee, the commissioner may approve a rate up to and including
270	270	9.5the employee's salary immediately prior to demotion. Thereafter, so long as the employee
271	271	9.6remains in the same position, the employee shall not be eligible to receive any increase in
272	272	9.7salary until the employee's salary is within the range of the class to which the employee's
273	273	9.8position is allocated unless such increases are specifically provided in collective bargaining
274	274	9.9agreements or plans pursuant to section 43A.18.
275	275	9.10 Sec. 19. Minnesota Statutes 2024, section 43A.181, subdivision 1, is amended to read:
276	276	9.11 Subdivision 1.Donation of vacation time.A state employee may donate up to 12 hours
277	277	9.12of accrued vacation time in any fiscal year to the account established by subdivision 2 for
278	278	9.13the benefit of another state employee. The employee must notify the employee's agency
279	279	9.14head of the amount of accrued vacation time the employee wishes to donate and the name
280	280	9.15of the other state employee who is to benefit from the donation. The agency head shall
281	281	9.16determine the monetary value of the donated time, using the gross salary of the employee
282	282	9.17making the donation. The agency head shall transfer that amount, less deductions for
283	283	9.18applicable taxes and retirement contributions, to the account established by subdivision 2.
284	284	9.19A donation of accrued vacation time is irrevocable once its monetary value has been
285	285	9.20transferred to the account.
286	286	9.21 Sec. 20. Minnesota Statutes 2024, section 43A.1815, is amended to read:
287	287	9.22 43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.
288	288	9.23 (a) In addition to donations under section 43A.181, a state employee may donate a total
289	289	9.24of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account of one
290	290	9.25or more state employees. A state employee may not be paid for more than 80 hours in a
291	291	9.26payroll period during which the employee uses sick leave credited to the employee's account
292	292	9.27as a result of a transfer from another state employee's vacation account.
293	293	9.28 (b) At retirement, eligible state employees may donate additional accumulated vacation
294	294	9.29hours in excess of their vacation payout at time of retirement, into a general pool, even if
295	295	9.30they already have donated 40 hours.
296	296	9.31 (b) (c) The recipient employee must receive donations, as available, for a life-threatening
297	297	9.32condition of the employee or spouse or dependent child that prevents the employee from
298	298	9.33working. A recipient may use program donations retroactively to when all forms of paid
299	299	9Sec. 20.
300	300	REVISOR EB/BM 25-0039401/10/25 10.1leave are exhausted if the employee has sufficient donations to cover the period of
301	301	10.2retroactivity. A recipient who receives program donations under this section may use up to
302	302	10.380 hours of program donations after the death of a spouse or dependent child.
303	303	10.4 (c) (d) An applicant for benefits under this section who receives an unfavorable
304	304	10.5determination may select a designee to consult with the commissioner or commissioner's
305	305	10.6designee on the reasons for the determination.
306	306	10.7 (d) (e) The commissioner shall establish procedures under section 43A.04, subdivision
307	307	10.84, for eligibility, duration of need based on individual cases, monitoring and evaluation of
308	308	10.9individual eligibility status, and other topics related to administration of this program.
309	309	10.10Sec. 21. Minnesota Statutes 2024, section 43A.19, subdivision 1, is amended to read:
310	310	10.11 Subdivision 1.Statewide affirmative action program.(a) To assure that positions in
311	311	10.12the executive branch of the civil service are equally accessible to all qualified persons, and
312	312	10.13to eliminate the effects of past and present discrimination, intended or unintended, on the
313	313	10.14basis of protected group status, the commissioner shall adopt and periodically revise, if
314	314	10.15necessary, a statewide affirmative action program. The statewide affirmative action program
315	315	10.16must consist of at least the following:
316	316	10.17 (1) objectives, goals, and policies;
317	317	10.18 (2) procedures, standards, and assumptions to be used by agencies in the preparation of
318	318	10.19agency affirmative action plans, including methods by which goals and timetables are
319	319	10.20established;
320	320	10.21 (3) the analysis of separation patterns to determine the impact on protected group
321	321	10.22members; and
322	322	10.23 (4) requirements for annual objectives and submission of affirmative action progress
323	323	10.24reports from heads of agencies.
324	324	10.25Agency heads must report the data in clause (3) to the state Director of Recruitment,
325	325	10.26Retention and Affirmative Action and the state ADA coordinator, in addition to being
326	326	10.27available to anyone upon request. The commissioner must annually post the aggregate and
327	327	10.28agency-level reports under clause (4) on the agency's website.
328	328	10.29 (b) The commissioner shall establish statewide affirmative action goals for each of the
329	329	10.30federal Equal Employment Opportunity (EEO) occupational categories applicable to state
330	330	10.31employment, using at least the following factors:
331	331	10Sec. 21.
332	332	REVISOR EB/BM 25-0039401/10/25 11.1 (1) the percentage of members of each protected class in the recruiting area population
333	333	11.2who have the necessary skills; and
334	334	11.3 (2) the availability for promotion or transfer of current employees who are members of
335	335	11.4protected classes.
336	336	11.5 (c) The commissioner may use any of the following factors in addition to the factors
337	337	11.6required under paragraph (b):
338	338	11.7 (1) the extent of unemployment of members of protected classes in the recruiting area
339	339	11.8population;
340	340	11.9 (2) the existence of training programs in needed skill areas offered by employing agencies
341	341	11.10and other institutions; and
342	342	11.11 (3) the expected number of available positions to be filled.
343	343	11.12 (d) The commissioner shall designate a state director of diversity and equal employment
344	344	11.13opportunity who may be delegated the preparation, revision, implementation, and
345	345	11.14administration of the program. The commissioner of management and budget may place
346	346	11.15the director's position in the unclassified service if the position meets the criteria established
347	347	11.16in section 43A.08, subdivision 1a.
348	348	11.17 (e) The commissioner shall designate a statewide ADA and disability employment
349	349	11.18director. The commissioner may delegate the preparation, revision, implementation,
350	350	11.19evaluation, and administration of the program to the director. The director must administer
351	351	11.20the 700-hour on-the-job demonstration experience under the supported work program and
352	352	11.21disabled veteran's employment programs. The ADA and disability employment director
353	353	11.22shall have education, knowledge, and skills in disability policy, employment, and the ADA.
354	354	11.23The commissioner may place the director's position in the unclassified service if the position
355	355	11.24meets the criteria established in section 43A.08, subdivision 1a.
356	356	11.25 (f) Agency affirmative action plans, including reports and progress, must be posted on
357	357	11.26the agency's public and internal websites within 30 days of being approved. The
358	358	11.27commissioner of management and budget shall post a link to all executive branch
359	359	11.28agency-approved affirmative action plans on its public website. Accessible copies of the
360	360	11.29affirmative action plan must be available to all employees and members of the general public
361	361	11.30upon request.
362	362	11Sec. 21.
363	363	REVISOR EB/BM 25-0039401/10/25 12.1 Sec. 22. Minnesota Statutes 2024, section 43A.23, subdivision 1, is amended to read:
364	364	12.2 Subdivision 1.General.(a) The commissioner is authorized to request proposals or to
365	365	12.3negotiate and to enter into contracts with parties which in the judgment of the commissioner
366	366	12.4are best qualified to provide service to the benefit plans. Contracts entered into are not
367	367	12.5subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate
368	368	12.6premium rates and coverage. The commissioner shall consider the cost of the plans,
369	369	12.7conversion options relating to the contracts, service capabilities, character, financial position,
370	370	12.8and reputation of the carriers, and any other factors which that the commissioner deems
371	371	12.9appropriate. Each benefit contract must be for a uniform term of at least one year, but may
372	372	12.10be made automatically renewable from term to term in the absence of notice of termination
373	373	12.11by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by
374	374	12.12chapter 297I on premiums paid to it by the state.
375	375	12.13 (b) All self-insured hospital and medical service products must comply with coverage
376	376	12.14mandates, data reporting, and consumer protection requirements applicable to the licensed
377	377	12.15carrier administering the product, had the product been insured, including chapters 62J,
378	378	12.1662M, and 62Q. Any self-insured products that limit coverage to a network of providers or
379	379	12.17provide different levels of coverage between network and nonnetwork providers shall comply
380	380	12.18with section 62D.123 and geographic access standards for health maintenance organizations
381	381	12.19adopted by the commissioner of health in rule under chapter 62D.
382	382	12.20 (c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered
383	383	12.21under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible
384	384	12.22employee's child to the full extent required under chapters 62A and 62L. Dependent child
385	385	12.23coverage must, at a minimum, extend to an eligible employee's dependent child to the
386	386	12.24limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent
387	387	12.25required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required
388	388	12.26in sections 62A.042 and 62A.302.
389	389	12.27 (d) Beginning January 1, 2010, the health insurance benefit plans offered in the
390	390	12.28commissioner's nonrepresented employees compensation plan under section 43A.18,
391	391	12.29subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include
392	392	12.30an option for a health plan that is compatible with the definition of a high-deductible health
393	393	12.31plan in section 223 of the United States Internal Revenue Code.
394	394	12.32Sec. 23. Minnesota Statutes 2024, section 43A.23, subdivision 2, is amended to read:
395	395	12.33 Subd. 2.Contract to contain statement of benefits.(a) Each contract under sections
396	396	12.3443A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include
397	397	12Sec. 23.
398	398	REVISOR EB/BM 25-0039401/10/25 13.1any maximums, limitations, exclusions, and other definitions of benefits the commissioner
399	399	13.2deems necessary or desirable. Each hospital and medical benefits contract shall provide
400	400	13.3benefits at least equal to those required by section 62E.06, subdivision 2.
401	401	13.4 (b) All summaries of benefits describing the hospital and medical service benefits offered
402	402	13.5to state employees must comply with laws and rules for content and clarity applicable to
403	403	13.6the licensed carrier administering the product. Referral procedures must be clearly described.
404	404	13.7The commissioners of commerce and health, as appropriate, shall may review the summaries
405	405	13.8of benefits, whether written or electronic, and advise the commissioner on any changes
406	406	13.9needed to ensure compliance.
407	407	13.10Sec. 24. Minnesota Statutes 2024, section 43A.24, subdivision 1a, is amended to read:
408	408	13.11 Subd. 1a.Opt out.(a) An individual eligible for state-paid hospital, medical, and dental
409	409	13.12benefits under this section has the right to decline those benefits, provided the individual
410	410	13.13declining the benefits can prove health insurance coverage from another source. Any
411	411	13.14individual declining benefits must do so in writing, signed and dated, on a form provided
412	412	13.15by the commissioner.
413	413	13.16 (b) The commissioner must create, and make available in hard copy and online a form
414	414	13.17for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
415	415	13.18must, at a minimum, include notice to the declining individual of the next available
416	416	13.19opportunity and procedure to re-enroll in the benefits.
417	417	13.20 (c) No later than January 15 of each year, the commissioner of management and budget
418	418	13.21must provide a report to the chairs and ranking minority members of the legislative
419	419	13.22committees with jurisdiction over state government finance on the number of employees
420	420	13.23choosing to opt-out of state employee group insurance coverage under this section. The
421	421	13.24report must provide itemized statistics, by agency, and include the total amount of savings
422	422	13.25accrued to each agency resulting from the opt-outs.
423	423	13.26Sec. 25. Minnesota Statutes 2024, section 43A.24, subdivision 2, is amended to read:
424	424	13.27 Subd. 2.Other eligible persons.The following persons are eligible for state paid life
425	425	13.28insurance and hospital, medical, and dental benefits as determined in applicable collective
426	426	13.29bargaining agreements or by the commissioner or by plans pursuant to section 43A.18,
427	427	13.30subdivision 6, or by the Board of Regents for employees of the University of Minnesota
428	428	13.31not covered by collective bargaining agreements. Coverages made available, including
429	429	13.32optional coverages, are as contained in the plan established pursuant to section 43A.18,
430	430	13.33subdivision 2:
431	431	13Sec. 25.
432	432	REVISOR EB/BM 25-0039401/10/25 14.1 (1) a member of the state legislature, provided that changes in benefits resulting in
433	433	14.2increased costs to the state shall not be effective until expiration of the term of the members
434	434	14.3of the existing house of representatives. An eligible member of the state legislature may
435	435	14.4decline to be enrolled for state paid coverages by filing a written waiver with the
436	436	14.5commissioner. The waiver shall not prohibit the member from enrolling the member or
437	437	14.6dependents for optional coverages, without cost to the state, as provided for in section
438	438	14.743A.26. A member of the state legislature who returns from a leave of absence to a position
439	439	14.8previously occupied in the civil service shall be eligible to receive the life insurance and
440	440	14.9hospital, medical, and dental benefits to which the position is entitled;
441	441	14.10 (2) an employee of the legislature or an employee of a permanent study or interim
442	442	14.11committee or commission or a state employee on leave of absence to work for the legislature,
443	443	14.12during a regular or special legislative session, as determined by the Legislative Coordinating
444	444	14.13Commission;
445	445	14.14 (3) a judge of the appellate courts or an officer or employee of these courts; a judge of
446	446	14.15the district court, a judge of county court, or a judge of county municipal court; a district
447	447	14.16court referee, judicial officer, court reporter, or law clerk; a district administrator; an
448	448	14.17employee of the Office of the District Administrator that is not in the Second or Fourth
449	449	14.18Judicial District; a court administrator or employee of the court administrator in a judicial
450	450	14.19district under section 480.181, subdivision 1, paragraph (b), and a guardian ad litem program
451	451	14.20employee;
452	452	14.21 (4) a salaried employee of the Public Employees Retirement Association;
453	453	14.22 (5) a full-time military or civilian officer or employee in the unclassified service of the
454	454	14.23Department of Military Affairs whose salary is paid from state funds;
455	455	14.24 (6) an employee of the Minnesota Historical Society, whether paid from state funds or
456	456	14.25otherwise, who is not a member of the governing board;
457	457	14.26 (7) an employee of the regents of the University of Minnesota;
458	458	14.27 (8) (7) notwithstanding section 43A.27, subdivision 3, an employee of the state of
459	459	14.28Minnesota or the regents of the University of Minnesota who is at least 60 and not yet 65
460	460	14.29years of age on July 1, 1982, who is otherwise eligible for employee and dependent insurance
461	461	14.30and benefits pursuant to section 43A.18 or other law, who has at least 20 years of service
462	462	14.31and retires, earlier than required, within 60 days of March 23, 1982; or an employee who
463	463	14.32is at least 60 and not yet 65 years of age on July 1, 1982, who has at least 20 years of state
464	464	14.33service and retires, earlier than required, from employment at Rochester state hospital after
465	465	14.34July 1, 1981; or an employee who is at least 55 and not yet 65 years of age on July 1, 1982,
466	466	14Sec. 25.
467	467	REVISOR EB/BM 25-0039401/10/25 15.1and is covered by the Minnesota State Retirement System correctional employee retirement
468	468	15.2plan or the State Patrol retirement fund, who has at least 20 years of state service and retires,
469	469	15.3earlier than required, within 60 days of March 23, 1982. For purposes of this clause, a person
470	470	15.4retires when the person terminates active employment in state or University of Minnesota
471	471	15.5service and applies for a retirement annuity. Eligibility shall cease when the retired employee
472	472	15.6attains the age of 65, or when the employee chooses not to receive the annuity that the
473	473	15.7employee has applied for. The retired employee shall be eligible for coverages to which the
474	474	15.8employee was entitled at the time of retirement, subject to any changes in coverage through
475	475	15.9collective bargaining or plans established pursuant to section 43A.18, for employees in
476	476	15.10positions equivalent to that from which retired, provided that the retired employee shall not
477	477	15.11be eligible for state-paid life insurance. Coverages shall be coordinated with relevant health
478	478	15.12insurance benefits provided through the federally sponsored Medicare program;
479	479	15.13 (9) (8) an employee of an agency of the state of Minnesota identified through the process
480	480	15.14provided in this paragraph who is eligible to retire prior to age 65. The commissioner and
481	481	15.15the exclusive representative of state employees shall enter into agreements under section
482	482	15.16179A.22 to identify employees whose positions are in programs that are being permanently
483	483	15.17eliminated or reduced due to federal or state policies or practices. Failure to reach agreement
484	484	15.18identifying these employees is not subject to impasse procedures provided in chapter 179A.
485	485	15.19The commissioner must prepare a plan identifying eligible employees not covered by a
486	486	15.20collective bargaining agreement in accordance with the process outlined in section 43A.18,
487	487	15.21subdivisions 2 and 3. For purposes of this paragraph, a person retires when the person
488	488	15.22terminates active employment in state service and applies for a retirement annuity. Eligibility
489	489	15.23ends as provided in the agreement or plan, but must cease at the end of the month in which
490	490	15.24the retired employee chooses not to receive an annuity, or the employee is eligible for
491	491	15.25employer-paid health insurance from a new employer. The retired employees shall be eligible
492	492	15.26for coverages to which they were entitled at the time of retirement, subject to any changes
493	493	15.27in coverage through collective bargaining or plans established under section 43A.18 for
494	494	15.28employees in positions equivalent to that from which they retired, provided that the retired
495	495	15.29employees shall not be eligible for state-paid life insurance;
496	496	15.30 (10) (9) employees of the state Board of Public Defense, with eligibility determined by
497	497	15.31the state Board of Public Defense in consultation with the commissioner of management
498	498	15.32and budget; and
499	499	15.33 (11) (10) employees of supporting organizations of Enterprise Minnesota, Inc., established
500	500	15.34after July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting
501	501	15.35organization.
502	502	15Sec. 25.
503	503	REVISOR EB/BM 25-0039401/10/25 16.1 Sec. 26. Minnesota Statutes 2024, section 43A.27, subdivision 2, is amended to read:
504	504	16.2 Subd. 2.Elective eligibility.The following persons, if not otherwise covered by section
505	505	16.343A.24, may elect coverage for themselves or their dependents at their own expense:
506	506	16.4 (1) a state employee, including persons on layoff from a civil service position as provided
507	507	16.5in collective bargaining agreements or a plan established pursuant to section 43A.18;
508	508	16.6 (2) an employee of the Board of Regents of the University of Minnesota, including
509	509	16.7persons on layoff, as provided in collective bargaining agreements or by the Board of
510	510	16.8Regents;
511	511	16.9 (3) (2) an officer or employee of the State Agricultural Society, Center for Rural Policy
512	512	16.10and Development, Agricultural Utilization Research Institute, State Horticultural Society,
513	513	16.11Sibley House Association, Minnesota Humanities Center Commission, Minnesota Area
514	514	16.12Industry Labor Management Councils, Minnesota International Center, Minnesota Academy
515	515	16.13of Science, Science Museum of Minnesota, Minnesota Safety Council, state Office of
516	516	16.14Disabled American Veterans, state Office of the American Legion and its auxiliary, state
517	517	16.15Office of Veterans of Foreign Wars and its auxiliary, or state Office of the Military Order
518	518	16.16of the Purple Heart;
519	519	16.17 (4) (3) a civilian employee of the adjutant general who is paid from federal funds and
520	520	16.18who is not eligible for benefits from any federal civilian employee group life insurance or
521	521	16.19health benefits program;
522	522	16.20 (5) (4) an officer or employee of the State Capitol Affinity Plus Federal Credit Union
523	523	16.21or the Highway Credit Union; and
524	524	16.22 (6) (5) an employee of the joint underwriting association pursuant to section 62I.121 or
525	525	16.23Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner
526	526	16.24determines that making these employees eligible to purchase this coverage would cause the
527	527	16.25state employee group insurance program to lose its status as a governmental plan or would
528	528	16.26cause the program to be treated as a multiemployer welfare arrangement.
529	529	16.27Sec. 27. Minnesota Statutes 2024, section 43A.33, subdivision 3, is amended to read:
530	530	16.28 Subd. 3.Procedures.(a) Procedures for discipline and discharge of employees covered
531	531	16.29by collective bargaining agreements shall be governed by the agreements. Procedures for
532	532	16.30employees not covered by a collective bargaining agreement shall be governed by this
533	533	16.31subdivision and by the commissioner's and managerial plans.
534	534	16Sec. 27.
535	535	REVISOR EB/BM 25-0039401/10/25 17.1 (b) For discharge, suspension without pay or demotion, no later than the effective date
536	536	17.2of such action, a permanent classified employee not covered by a collective bargaining
537	537	17.3agreement shall be given written notice by the appointing authority. The content of that
538	538	17.4notice as well as the employee's right to reply to the appointing authority shall be as
539	539	17.5prescribed in the grievance procedure contained in the applicable plan established pursuant
540	540	17.6to section 43A.18. The notice shall also include a statement that the employee may elect to
541	541	17.7appeal the action to the Bureau of Mediation Services within 30 calendar days following
542	542	17.8the effective date of the disciplinary action. A copy of the notice and the employee's reply,
543	543	17.9if any, shall be filed by the appointing authority with the commissioner no later than ten
544	544	17.10calendar days following the effective date of the disciplinary action. The commissioner
545	545	17.11shall have final authority to decide whether the appointing authority shall settle the dispute
546	546	17.12prior to the hearing provided under this subdivision 4.
547	547	17.13 (c) For discharge, suspension, or demotion of an employee serving an initial probationary
548	548	17.14period, and for noncertification in any subsequent probationary period, grievance procedures
549	549	17.15shall be as provided in the plan established pursuant to section 43A.18.
550	550	17.16 (d) Within ten days of receipt of the employee's written notice of appeal, the commissioner
551	551	17.17of the Bureau of Mediation Services shall provide both parties with a list of potential
552	552	17.18arbitrators according to the rules of the Bureau of Mediation Services to hear the appeal.
553	553	17.19The process of selecting the arbitrator from the list shall be determined by the plan.The
554	554	17.20hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services. If the
555	555	17.21arbitrator finds, based on the hearing record, that the action appealed was not taken by the
556	556	17.22appointing authority for just cause, the employee shall be reinstated to the position, or an
557	557	17.23equal position in another division within the same agency, without loss of pay. If the arbitrator
558	558	17.24finds that there exists sufficient grounds for institution of the appointing authority's action
559	559	17.25but the hearing record establishes extenuating circumstances, the arbitrator may reinstate
560	560	17.26the employee, with full, partial, or no pay, or may modify the appointing authority's action.
561	561	17.27The appointing authority shall bear the costs of the arbitrator for hearings provided for in
562	562	17.28this section.
563	563	17.29Sec. 28. Minnesota Statutes 2024, section 43A.346, subdivision 2, is amended to read:
564	564	17.30 Subd. 2.Eligibility.(a) This section applies to a terminated state employee who:
565	565	17.31 (1) for at least the five years immediately preceding separation under clause clauses (2)
566	566	17.32and (3), was regularly scheduled to work 1,044 or more hours per year in a position covered
567	567	17.33by a pension plan administered by the Minnesota State Retirement System or the Public
568	568	17.34Employees Retirement Association;
569	569	17Sec. 28.
570	570	REVISOR EB/BM 25-0039401/10/25 18.1 (2) terminated state or Metropolitan Council employment;
571	571	18.2 (3) at the time of termination under clause (2), met the age and service requirements
572	572	18.3necessary to receive an unreduced retirement annuity from the plan and satisfied requirements
573	573	18.4for the commencement of the retirement annuity or, for a terminated employee under the
574	574	18.5unclassified employees retirement plan, met the age and service requirements necessary to
575	575	18.6receive an unreduced retirement annuity from the plan and satisfied requirements for the
576	576	18.7commencement of the retirement annuity or elected a lump-sum payment; and
577	577	18.8 (4) agrees to accept a postretirement option position with the same or a different
578	578	18.9appointing authority, working a reduced schedule that is both (i) a reduction of at least 25
579	579	18.10percent from the employee's number of previously regularly scheduled work hours; and (ii)
580	580	18.111,044 hours or less in state or Metropolitan Council service.
581	581	18.12 (b) For purposes of this section, an unreduced retirement annuity includes a retirement
582	582	18.13annuity computed under a provision of law which permits retirement, without application
583	583	18.14of an earlier retirement reduction factor, whenever age plus years of allowable service total
584	584	18.15at least 90.
585	585	18.16 (c) For purposes of this section, as it applies to state employees who are members of the
586	586	18.17Public Employees Retirement Association who are at least age 62, the length of separation
587	587	18.18requirement and termination of service requirement prohibiting return to work agreements
588	588	18.19under section 353.01, subdivisions 11a and 28, are not applicable.
589	589	18.20Sec. 29. Minnesota Statutes 2024, section 43A.346, subdivision 6, is amended to read:
590	590	18.21 Subd. 6.Duration.Postretirement option employment is for an initial period not to
591	591	18.22exceed one year. During that period, the appointing authority may not modify the conditions
592	592	18.23of employment specified in the written offer without the person's consent, except as required
593	593	18.24by law or by the collective bargaining agreement or compensation plan applicable to the
594	594	18.25person. At the end of the initial period, the appointing authority has sole discretion to
595	595	18.26determine if the offer of a postretirement option position will be renewed, renewed with
596	596	18.27modifications, or terminated. Postretirement option employment may be renewed for periods
597	597	18.28of up to one year, not to exceed a total duration of five years. No person may be employed
598	598	18.29in one or a combination of postretirement option positions under this section for a total of
599	599	18.30more than five years.
600	600	18Sec. 29.
601	601	REVISOR EB/BM 25-0039401/10/25 19.1 Sec. 30. Minnesota Statutes 2024, section 43A.36, subdivision 1, is amended to read:
602	602	19.2 Subdivision 1.Cooperation; state agencies.(a) The commissioner may delegate
603	603	19.3administrative functions associated with the duties of the commissioner to appointing
604	604	19.4authorities who have the capability to perform such functions when the commissioner
605	605	19.5determines that it is in the best interests of the state civil service. The commissioner shall
606	606	19.6consult with agencies and agencies shall cooperate as appropriate in implementation of this
607	607	19.7chapter.
608	608	19.8 (b) The commissioner, in conjunction with appointing authorities, shall analyze and
609	609	19.9assess current and future human resource requirements of the civil service and coordinate
610	610	19.10personnel actions throughout the civil service to meet the requirements. The commissioner
611	611	19.11shall provide recruiting assistance and make the applicant database available to appointing
612	612	19.12authorities to use in making appointments to positions in the unclassified service.
613	613	19.13 (c) The head of each agency in the executive branch shall designate an agency personnel
614	614	19.14officer. The agency personnel officer shall be accountable to the agency head for all personnel
615	615	19.15functions prescribed by laws, rules, collective bargaining agreements, the commissioner
616	616	19.16and the agency head. Except when otherwise prescribed by the agency head in a specific
617	617	19.17instance, the personnel officer shall be assumed to be the authority accountable to the agency
618	618	19.18head over any other officer or employee in the agency for personnel functions.
619	619	19.19 (d) The head of each agency in the executive branch shall designate an affirmative action
620	620	19.20officer who shall have primary responsibility for the administration of the agency's
621	621	19.21affirmative action plan. The officer shall report directly to the head of the agency on
622	622	19.22affirmative action matters.
623	623	19.23 (e) Pursuant to section 43A.431, the head of each agency in the executive branch shall
624	624	19.24designate an ADA coordinator who shall have primary responsibility for the administration
625	625	19.25of ADA policies, procedures, trainings, requests, and arbitration. The coordinator shall
626	626	19.26report directly to the commissioner agency head.
627	627	19.27Sec. 31. Minnesota Statutes 2024, section 43A.421, is amended to read:
628	628	19.28 43A.421 SUPPORTED WORK PROGRAM.
629	629	19.29 Subdivision 1.Program established.Active positions within agencies of state
630	630	19.30government may be selected for inclusion for a supported work program for persons with
631	631	19.31significant disabilities. A full-time position may be shared by up to three persons with
632	632	19.32significant disabilities and their job coach. The job coach is not a state employee within the
633	633	19.33scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach
634	634	19Sec. 31.
635	635	REVISOR EB/BM 25-0039401/10/25 20.1holds another position within the scope of section 43A.02, subdivision 21, or 179A.03,
636	636	20.2subdivision 14. All classified supported work job postings need to link to the overview and
637	637	20.3application process for the supported work program. The commissioner is responsible for
638	638	20.4the establishment, administration, and oversight of a program providing customized
639	639	20.5employment opportunities for individuals with significant disabilities as defined in United
640	640	20.6States Code, title 29, section 705(21). Employees in the customized employment program
641	641	20.7are appointed to a customized employment position by matching the skills offered by eligible
642	642	20.8individuals to specific tasks and projects within agencies, rather than to an existing job
643	643	20.9classification. When job coach services are necessary for the individuals employed through
644	644	20.10this program, the job coach is not a state employee within the scope of section 43A.02,
645	645	20.11subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position
646	646	20.12within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.
647	647	20.13 Subd. 2.Responsibilities Customized employment.(a) The commissioner is responsible
648	648	20.14for the administration and oversight of the supported work customized employment program,
649	649	20.15including the establishment of policies and procedures, eligibility, data collection and
650	650	20.16reporting requirements, and compliance.
651	651	20.17 (b) The commissioner or the commissioner's designee shall design and implement a
652	652	20.18training curriculum for the supported work customized employment program. All executive
653	653	20.19leaders, managers, supervisors, human resources professionals, affirmative action officers,
654	654	20.20and Americans with Disabilities Act coordinators must receive annual training regarding
655	655	20.21the program.
656	656	20.22 (c) The commissioner or the commissioner's designee shall develop, administer, and
657	657	20.23make public a formal grievance process for individuals in the program.
658	658	20.24Sec. 32. REPEALER.
659	659	20.25 Minnesota Statutes 2024, sections 43A.05, subdivision 6; 43A.315; 43A.317, subdivisions
660	660	20.261, 2, 3, 5, 6, 7, 8, 9, 10, and 12; and 43A.318, subdivisions 1, 2, 4, and 5, are repealed.
661	661	20Sec. 32.
662	662	REVISOR EB/BM 25-0039401/10/25 43A.05 POWERS AND RESPONSIBILITIES; PERSONNEL.
663	663	Subd. 6.Allocation.The amount recommended by the Legislative Coordinating Commission
664	664	pursuant to subdivision 5 to make comparability adjustments shall be submitted to the full legislature
665	665	by March 1 of each odd-numbered year. The legislature may accept, reject, or modify the amount
666	666	recommended. The commissioner shall allocate the amount appropriated by the legislature, on a
667	667	pro rata basis, if necessary, to the proper accounts for distribution to incumbents of classes which
668	668	have been approved for comparability adjustments.
669	669	Funds appropriated for purposes of comparability adjustments for state employees shall be
670	670	drawn exclusively from and shall not be in addition to the funds appropriated for salary supplements
671	671	or other employee compensation. Funds not used for purposes of comparability adjustments shall
672	672	revert to the appropriate fund.
673	673	43A.315 STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE INCENTIVE
674	674	PROGRAM.
675	675	The commissioner of management and budget may develop and implement a program that
676	676	creates an incentive for efficient use by state employees of State Employee Group Insurance Program
677	677	(SEGIP). The program may reward employees covered by SEGIP as a group if per capita employee
678	678	health care costs paid by SEGIP for a calendar year prove to be less than estimated by the
679	679	commissioner prior to the beginning of the calendar year. The reward may consist of payments of
680	680	one-half of the cost-savings into the employees' health reimbursement accounts, to be made no later
681	681	than June 30 of the following calendar year.
682	682	43A.317 MINNESOTA EMPLOYEES INSURANCE PROGRAM.
683	683	Subdivision 1.Intent.The legislature finds that the creation of a statewide program to provide
684	684	employers with the advantages of a large pool for insurance purchasing would advance the welfare
685	685	of the citizens of the state.
686	686	Subd. 2.Definitions.(a) Scope. For the purposes of this section, the terms defined have the
687	687	meaning given them.
688	688	(b) Commissioner. "Commissioner" means the commissioner of management and budget.
689	689	(c) Eligible employee. "Eligible employee" means an employee eligible to participate in the
690	690	program under the terms described in subdivision 6.
691	691	(d) Eligible employer. "Eligible employer" means an employer eligible to participate in the
692	692	program under the terms described in subdivision 5.
693	693	(e) Eligible individual. "Eligible individual" means a person eligible to participate in the
694	694	program under the terms described in subdivision 6.
695	695	(f) Employee. "Employee" means an employee of an eligible employer. "Employee" includes
696	696	a sole proprietor, partner of a partnership, member of a limited liability company, or independent
697	697	contractor.
698	698	(g) Employer. "Employer" means a private person, firm, corporation, partnership, limited
699	699	liability company, association, or other entity actively engaged in business or public services.
700	700	"Employer" includes both for-profit and nonprofit entities.
701	701	(h) Program. "Program" means the Minnesota employees insurance program created by this
702	702	section.
703	703	Subd. 3.Administration.After consulting with the chairs of the senate Governmental Operations
704	704	and Veterans Committee and the house of representatives Governmental Operations and Veterans
705	705	Affairs Policy Committee, the commissioner may determine when the program provided under this
706	706	section is available. When the commissioner makes the program available, the commissioner shall,
707	707	consistent with the provisions of this section, administer the program and determine its coverage
708	708	options, funding and premium arrangements, contractual arrangements, and all other matters
709	709	necessary to administer the program. The commissioner's contracting authority for the program,
710	710	including authority for competitive bidding and negotiations, is governed by section 43A.23.
711	711	Subd. 5.Employer eligibility.(a) Procedures. All employers are eligible for coverage through
712	712	the program subject to the terms of this subdivision. The commissioner shall establish procedures
713	713	for an employer to apply for coverage through the program.
714	714	1R
715	715	APPENDIX
716	716	Repealed Minnesota Statutes: 25-00394 (b) Term. The initial term of an employer's coverage may be for up to two years from the
717	717	effective date of the employer's application. After that, coverage will be automatically renewed for
718	718	an additional term unless the employer gives notice of withdrawal from the program according to
719	719	procedures established by the commissioner or the commissioner gives notice to the employer of
720	720	the discontinuance of the program. The commissioner may establish conditions under which an
721	721	employer may withdraw from the program prior to the expiration of a term, including by reason of
722	722	an increase in health coverage premiums of 50 percent or more from one insurance year to the next.
723	723	An employer that withdraws from the program may not reapply for coverage for a period of time
724	724	equal to its initial term of coverage.
725	725	(c) Minnesota work force. An employer is not eligible for coverage through the program if
726	726	five percent or more of its eligible employees work primarily outside Minnesota, except that an
727	727	employer may apply to the program on behalf of only those employees who work primarily in
728	728	Minnesota.
729	729	(d) Employee participation; aggregation of groups. An employer is not eligible for coverage
730	730	through the program unless its application includes all eligible employees who work primarily in
731	731	Minnesota, except employees who waive coverage as permitted by subdivision 6. Private entities
732	732	that are eligible to file a combined tax return for purposes of state tax laws are considered a single
733	733	employer, except as otherwise approved by the commissioner.
734	734	(e) Private employer. A private employer is not eligible for coverage unless it has two or more
735	735	eligible employees in the state of Minnesota. If an employer has only two eligible employees and
736	736	one is the spouse, child, sibling, parent, or grandparent of the other, the employer must be a
737	737	Minnesota-domiciled employer and have paid Social Security or self-employment tax on behalf of
738	738	both eligible employees.
739	739	(f) Minimum participation. The commissioner must require as a condition of employer
740	740	eligibility that at least 75 percent of its eligible employees who have not waived coverage participate
741	741	in the program. The participation level of eligible employees must be determined at the initial
742	742	offering of coverage and at the renewal date of coverage. For purposes of this section, waiver of
743	743	coverage includes only waivers due to coverage under another group health benefit plan.
744	744	(g) Employer contribution. The commissioner must require as a condition of employer
745	745	eligibility that the employer contribute at least 50 percent toward the cost of the premium of the
746	746	employee and may require that the contribution toward the cost of coverage is structured in a way
747	747	that promotes price competition among the coverage options available through the program.
748	748	(h) Enrollment cap. The commissioner may limit employer enrollment in the program if
749	749	necessary to avoid exceeding the program's reserve capacity.
750	750	Subd. 6.Individual eligibility.(a) Procedures. The commissioner shall establish procedures
751	751	for eligible employees and other eligible individuals to apply for coverage through the program.
752	752	(b) Employees. An employer shall determine when it applies to the program the criteria its
753	753	employees must meet to be eligible for coverage under its plan. An employer may subsequently
754	754	change the criteria annually or at other times with approval of the commissioner. The criteria must
755	755	provide that new employees become eligible for coverage after a probationary period of at least 30
756	756	days, but no more than 90 days.
757	757	(c) Other individuals. An employer may elect to cover under its plan:
758	758	(1) the spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision
759	759	2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent
760	760	grandchildren to the extent required in sections 62A.042 and 62A.302;
761	761	(2) a retiree who is eligible to receive a pension or annuity from the employer and a covered
762	762	retiree's spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision
763	763	2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent
764	764	grandchildren to the extent required in sections 62A.042 and 62A.302;
765	765	(3) the surviving spouse, dependent children to the limiting age as defined in section 62Q.01,
766	766	subdivision 2a, disabled children, and dependent grandchildren of a deceased employee or retiree,
767	767	if the spouse, children, or grandchildren were covered at the time of the death;
768	768	(4) a covered employee who becomes disabled, as provided in sections 62A.147 and 62A.148;
769	769	or
770	770	2R
771	771	APPENDIX
772	772	Repealed Minnesota Statutes: 25-00394 (5) any other categories of individuals for whom group coverage is required by state or federal
773	773	law.
774	774	An employer shall determine when it applies to the program the criteria individuals in these
775	775	categories must meet to be eligible for coverage. An employer may subsequently change the criteria
776	776	annually, or at other times with approval of the commissioner. The criteria for dependent children
777	777	to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent
778	778	grandchildren may be no more inclusive than the criteria under section 43A.18, subdivision 2. This
779	779	paragraph shall not be interpreted as relieving the program from compliance with any federal and
780	780	state continuation of coverage requirements.
781	781	(d) Waiver and late entrance. An eligible individual may waive coverage at the time the
782	782	employer joins the program or when coverage first becomes available. The commissioner may
783	783	establish a preexisting condition exclusion of not more than 18 months for late entrants as defined
784	784	in section 62L.02, subdivision 19.
785	785	(e) Continuation coverage. The program shall provide all continuation coverage required by
786	786	state and federal law.
787	787	Subd. 7.Coverage.Coverage is available through the program beginning on July 1, 1993. Until
788	788	an arrangement is in place to provide coverage through a transfer of risk to one or more carriers
789	789	regulated under chapter 62A, 62C, or 62D, the commissioner shall solicit bids under section 43A.23,
790	790	from carriers regulated under chapters 62A, 62C, and 62D, to provide coverage of eligible
791	791	individuals. The commissioner shall provide coverage through contracts with carriers, unless the
792	792	commissioner receives no reasonable bids from carriers.
793	793	(a) Health coverage. Health coverage is available to all employers in the program. The
794	794	commissioner shall attempt to establish health coverage options that have strong care management
795	795	features to control costs and promote quality and shall attempt to make a choice of health coverage
796	796	options available. Health coverage for a retiree who is eligible for the federal Medicare program
797	797	must be administered as though the retiree is enrolled in Medicare parts A and B. To the extent
798	798	feasible as determined by the commissioner and in the best interests of the program, the commissioner
799	799	shall model coverage after the plan established in section 43A.18, subdivision 2. Health coverage
800	800	must include at least the benefits required of a carrier regulated under chapter 62A, 62C, or 62D
801	801	for comparable coverage. Coverage under this paragraph must not be provided as part of the health
802	802	plans available to state employees.
803	803	(b) Optional coverages. In addition to offering health coverage, the commissioner may arrange
804	804	to offer dental coverage through the program. Employers with health coverage may choose to offer
805	805	dental coverage according to the terms established by the commissioner.
806	806	(c) Open enrollment. The program must meet all underwriting requirements of chapter 62L
807	807	and must provide periodic open enrollments for eligible individuals for those coverages where a
808	808	choice exists.
809	809	(d) Technical assistance. The commissioner may arrange for technical assistance and referrals
810	810	for eligible employers in areas such as health promotion and wellness, employee benefits structure,
811	811	tax planning, and health care analysis services as described in section 62J.2930.
812	812	Subd. 8.Premiums.(a) Payments. Employers enrolled in the program shall pay premiums
813	813	according to terms established by the commissioner. If an employer fails to make the required
814	814	payments, the commissioner may cancel coverage and pursue other civil remedies.
815	815	(b) Rating method. The commissioner shall determine the premium rates and rating method
816	816	for the program. The rating method for eligible small employers must meet or exceed the
817	817	requirements of chapter 62L. The rating methods must recover in premiums all of the ongoing costs
818	818	for state administration and for maintenance of a premium stability and claim fluctuation reserve.
819	819	On June 30, 1999, after paying all necessary and reasonable expenses, the commissioner must apply
820	820	up to $2,075,000 of any remaining balance in the Minnesota employees' insurance trust fund to
821	821	repayment of any amounts drawn or expended for this program from the health care access fund.
822	822	(c) Taxes and assessments. To the extent that the program operates as a self-insured group,
823	823	the premiums paid to the program are not subject to the taxes imposed by chapter 297I, but the
824	824	program is subject to a Minnesota Comprehensive Health Association assessment under section
825	825	62E.11.
826	826	Subd. 9.Minnesota employees insurance trust fund.(a) Contents. The Minnesota employees
827	827	insurance trust fund in the state treasury consists of deposits received from eligible employers and
828	828	3R
829	829	APPENDIX
830	830	Repealed Minnesota Statutes: 25-00394 individuals, contractual settlements or rebates relating to the program, investment income or losses,
831	831	and direct appropriations.
832	832	(b) Appropriation. All money in the fund is appropriated to the commissioner to pay insurance
833	833	premiums, approved claims, refunds, administrative costs, and other costs necessary to administer
834	834	the program.
835	835	(c) Reserves. For any coverages for which the program does not contract to transfer full financial
836	836	responsibility, the commissioner shall establish and maintain reserves:
837	837	(1) for claims in process, incomplete and unreported claims, premiums received but not yet
838	838	earned, and all other accrued liabilities; and
839	839	(2) to ensure premium stability and the timely payment of claims in the event of adverse claims
840	840	experience. The reserve for premium stability and claim fluctuations must be established according
841	841	to the standards of section 62C.09, subdivision 3, except that the reserve may exceed the upper
842	842	limit under this standard until July 1, 1997.
843	843	(d) Investments. The State Board of Investment shall invest the fund's assets according to
844	844	section 11A.24. Investment income and losses attributable to the fund must be credited to the fund.
845	845	Subd. 10.Program status.The Minnesota employees insurance program is a state program to
846	846	provide the advantages of a large pool to small employers for purchasing health coverage, other
847	847	coverages, and related services from insurance companies, health maintenance organizations, and
848	848	other organizations. The program is not an insurance company. Coverage under this program shall
849	849	be considered a certificate of insurance or similar evidence of coverage and is subject to all applicable
850	850	requirements of chapters 60A, 62A, 62C, 62E, 62H, 62L, and 72A, and is subject to regulation by
851	851	the commissioner of commerce to the extent applicable.
852	852	Subd. 12.Status of agents.Notwithstanding sections 60K.49 and 72A.07, the program may
853	853	use, and pay referral fees, commissions, or other compensation to, agents licensed as insurance
854	854	producers under chapter 60K or licensed under section 62C.17, regardless of whether the agents
855	855	are appointed to represent the particular health carriers or community integrated service networks
856	856	that provide the coverage available through the program. When acting under this subdivision, an
857	857	agent is not an agent of the health carrier or community integrated service network, with respect to
858	858	that transaction.
859	859	43A.318 PUBLIC EMPLOYEES GROUP LONG-TERM CARE INSURANCE
860	860	PROGRAM.
861	861	Subdivision 1.Definitions.(a) Scope. For the purposes of this section, the terms defined have
862	862	the meanings given them.
863	863	(b) Eligible person. "Eligible person" means:
864	864	(1) a person who is eligible for insurance and benefits under section 43A.24;
865	865	(2) a person who at the time of separation from employment was eligible to purchase coverage
866	866	at personal expense under section 43A.27, subdivision 3, regardless of whether the person elected
867	867	to purchase this coverage;
868	868	(3) a spouse of a person described in clause (1) or (2), regardless of the enrollment status in the
869	869	program of the person described in clause (1) or (2); or
870	870	(4) a parent of a person described in clause (1), regardless of the enrollment status in the program
871	871	of the person described in clause (1).
872	872	(c) Program. "Program" means the statewide public employees long-term care insurance
873	873	program created under subdivision 2.
874	874	(d) Qualified vendor. "Qualified vendor" means an entity licensed or authorized to underwrite,
875	875	provide, or administer group long-term care insurance benefits in this state.
876	876	Subd. 2.Program creation; general provisions.(a) The commissioner may administer a
877	877	program to make long-term care coverage available to eligible persons. The commissioner may
878	878	determine the program's funding arrangements, request bids from qualified vendors, and negotiate
879	879	and enter into contracts with qualified vendors. Contracts are not subject to the requirements of
880	880	section 16C.16 or 16C.19. Contracts must be for a uniform term of at least one year, but may be
881	881	made automatically renewable from term to term in the absence of notice of termination by either
882	882	party. The program may not be self-insured until the commissioner has completed an actuarial study
883	883	4R
884	884	APPENDIX
885	885	Repealed Minnesota Statutes: 25-00394 of the program and reported the results of the study to the legislature and self-insurance has been
886	886	specifically authorized by law.
887	887	(b) The program may provide coverage for home, community, and institutional long-term care
888	888	and any other benefits as determined by the commissioner. Coverage is optional. The enrolled
889	889	eligible person must pay the full cost of the coverage.
890	890	(c) The commissioner shall promote activities that attempt to raise awareness of the need for
891	891	long-term care insurance among residents of the state and encourage the increased prevalence of
892	892	long-term care coverage. These activities must include the sharing of knowledge gained in the
893	893	development of the program.
894	894	(d) The commissioner may employ and contract with persons and other entities to perform the
895	895	duties under this section and may determine their duties and compensation consistent with this
896	896	chapter.
897	897	(e) The benefits provided under this section are not terms and conditions of employment as
898	898	defined under section 179A.03, subdivision 19, and are not subject to collective bargaining.
899	899	(f) The commissioner shall establish underwriting criteria for entry of all eligible persons into
900	900	the program. Eligible persons who would be immediately eligible for benefits may not enroll.
901	901	(g) Eligible persons who meet underwriting criteria may enroll in the program upon hiring and
902	902	at other times established by the commissioner.
903	903	(h) An eligible person enrolled in the program may continue to participate in the program even
904	904	if an event, such as termination of employment, changes the person's employment status.
905	905	(i) Participating public employee pension plans and public employers may provide automatic
906	906	pension or payroll deduction for payment of long-term care insurance premiums to qualified vendors
907	907	contracted with under this section.
908	908	(j) The premium charged to program enrollees must include an administrative fee to cover all
909	909	program expenses incurred in addition to the cost of coverage. All fees collected are appropriated
910	910	to the commissioner for the purpose of administrating the program.
911	911	Subd. 4.Long-term care insurance trust fund.(a) The long-term care insurance trust fund
912	912	in the state treasury consists of deposits of the premiums received from persons enrolled in the
913	913	program. All money in the fund is appropriated to the commissioner to pay premiums, claims,
914	914	refunds, administrative costs, and other related service costs. The commissioner shall reserve an
915	915	amount of money sufficient to cover the actuarially estimated costs of claims incurred but unpaid.
916	916	The trust fund must be used solely for the purpose of the program.
917	917	(b) The State Board of Investment shall invest the money in the fund according to section
918	918	11A.24. Investment income and losses attributable to the fund must be credited to or deducted from
919	919	the fund.
920	920	Subd. 5.Private sources.This section does not prohibit or limit individuals or local governments
921	921	from purchasing long-term care insurance through other private sources.
922	922	5R
923	923	APPENDIX
924	924	Repealed Minnesota Statutes: 25-00394