Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3057 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	25-00394 as introduced01/10/25 REVISOR EB/BM
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 3057NINETY-FOURTH SESSION
30	30	(SENATE AUTHORS: CARLSON)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading03/27/2025
33	33	Referred to State and Local Government 2.1employment, including grievance administration, for employees of the executive branch
34	34	2.2who are not otherwise provided for in this chapter or other law.
35	35	2.3 Sec. 3. Minnesota Statutes 2024, section 43A.04, subdivision 1, is amended to read:
36	36	2.4 Subdivision 1.Statewide leadership.(a) The commissioner is the chief personnel and
37	37	2.5labor relations manager of the civil service in the executive branch.
38	38	2.6 Whenever any power or responsibility is given to the commissioner by any provision
39	39	2.7of this chapter, unless otherwise expressly provided, the power or authority applies to all
40	40	2.8employees of agencies in the executive branch and to employees in classified positions in
41	41	2.9the Office of the Legislative Auditor, the Minnesota State Retirement System, the Public
42	42	2.10Employees Retirement Association, and the Teacher's Retirement Association. Unless
43	43	2.11otherwise provided by law, the power or authority does not apply to unclassified employees
44	44	2.12in the legislative and judicial branches.
45	45	2.13 (b) The commissioner shall operate an information system from which personnel data,
46	46	2.14as defined in section 13.43, concerning employees and applicants for positions in the
47	47	2.15classified service can be retrieved.
48	48	2.16 The commissioner has access to all public and private personnel data kept by appointing
49	49	2.17authorities that will aid in the discharge of the commissioner's duties.
50	50	2.18 (c) The commissioner may consider and investigate any matters concerned with the
51	51	2.19administration of provisions of this chapter, and may order any remedial actions consistent
52	52	2.20with law. The commissioner, at the request of an agency, shall provide assistance in employee
53	53	2.21misconduct investigations. Upon request of the appointing authority, the commissioner may
54	54	2.22issue determinations on personnel matters regarding board-appointed executive directors
55	55	2.23or leaders. The commissioner shall have the right to assess from the requesting agency, any
56	56	2.24costs incurred while assisting the agency in the employee misconduct investigation. Money
57	57	2.25received by the commissioner under this paragraph is appropriated to the commissioner for
58	58	2.26purposes of this paragraph.
59	59	2.27 (d) The commissioner may assess or establish and collect premiums from all state entities
60	60	2.28to cover the costs of programs under sections section 15.46 and 176.603.
61	61	2.29 Sec. 4. Minnesota Statutes 2024, section 43A.04, subdivision 4, is amended to read:
62	62	2.30 Subd. 4.Administrative procedures.The commissioner shall develop administrative
63	63	2.31procedures, which are not subject to the rulemaking provisions of the Administrative
64	64	2.32Procedure Act, to effect provisions of chapter 43A which do not directly affect the rights
65	65	2Sec. 4.
66	66	25-00394 as introduced01/10/25 REVISOR EB/BM 3.1of or processes available to the general public. The commissioner may also adopt
67	67	3.2administrative procedures, not subject to the Administrative Procedure Act, which concern
68	68	3.3topics affecting the general public if those procedures concern only the internal management
69	69	3.4of the department or other agencies and if those elements of the topics which affect the
70	70	3.5general public are the subject of department rules.
71	71	3.6 Administrative procedures shall be reproduced and made available for comment in
72	72	3.7accessible digital formats under section 16E.03 to agencies, employees, and appropriate
73	73	3.8exclusive representatives certified pursuant to sections 179A.01 to 179A.25, for at least 15
74	74	3.9days prior to implementation and shall include but are not limited to:
75	75	3.10 (1) maintenance and administration of a plan of classification for all positions in the
76	76	3.11classified service and for comparisons of unclassified positions with positions in the classified
77	77	3.12service;
78	78	3.13 (2) procedures for administration of collective bargaining agreements and plans
79	79	3.14established pursuant to section 43A.18 concerning total compensation and the terms and
80	80	3.15conditions of employment for employees;
81	81	3.16 (3) procedures for effecting all personnel actions internal to the state service such as
82	82	3.17processes and requirements for agencies to publicize job openings and consider applicants
83	83	3.18who are referred or nominate themselves apply, conduct of selection procedures limited to
84	84	3.19employees, noncompetitive and qualifying appointments of employees and leaves of absence;
85	85	3.20 (4) maintenance and administration of employee performance appraisal, training and
86	86	3.21other programs; and
87	87	3.22 (5) procedures for pilots of the reengineered employee selection process. Employment
88	88	3.23provisions of this chapter, associated personnel rules adopted under subdivision 3, and
89	89	3.24administrative procedures established under clauses (1) and (3) may be waived for the
90	90	3.25purposes of these pilots. The pilots may affect the rights of and processes available to
91	91	3.26members of the general public seeking employment in the classified service. The
92	92	3.27commissioner will provide public notice of any pilot directly affecting the rights of and
93	93	3.28processes available to the general public and make the administrative procedures available
94	94	3.29for comment to the general public, agencies, employees, and appropriate exclusive
95	95	3.30representatives certified pursuant to sections 179A.01 to 179A.25 for at least 30 days prior
96	96	3.31to implementation. The commissioner must publish the public notice in an accessible digital
97	97	3.32format under section 16E.03. The commissioner must provide a comment process that allows
98	98	3.33the public to submit comments through multiple formats to ensure accessibility. These
99	99	3.34formats must include telephone, digital content, and email.
100	100	3Sec. 4.
101	101	25-00394 as introduced01/10/25 REVISOR EB/BM 4.1 Sec. 5. Minnesota Statutes 2024, section 43A.04, subdivision 8, is amended to read:
102	102	4.2 Subd. 8.Donation of time.Notwithstanding any law to the contrary, the commissioner
103	103	4.3shall authorize the appointing authority to permit the donation of up to eight hours of
104	104	4.4accumulated vacation time in each year by each employee who is a member of law
105	105	4.5enforcement unit number 1, 18, or 19 to their union representative for the purpose of carrying
106	106	4.6out the duties of office.
107	107	4.7 Sec. 6. Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:
108	108	4.8 Subd. 3.Commissioner's Nonrepresented employees compensation plan.The
109	109	4.9commissioner shall periodically develop and establish pursuant to this chapter a
110	110	4.10commissioner's nonrepresented employees compensation plan. The commissioner shall
111	111	4.11submit the plan to the Legislative Coordinating Commission.
112	112	4.12 Sec. 7. Minnesota Statutes 2024, section 43A.07, subdivision 2, is amended to read:
113	113	4.13 Subd. 2.Job classes and titles.An appointing authority shall notify the commissioner
114	114	4.14when a new position is to be established in the classified service. The commissioner shall
115	115	4.15allocate the position to an appropriate class in the classification plan or if the position cannot
116	116	4.16be allocated to an existing class, establish a new class. The commissioner shall assign an
117	117	4.17appropriate salary rate or range to the class. If the class is in a bargaining unit under the
118	118	4.18provisions of section 179A.10, and there is an applicable provision in the collective
119	119	4.19bargaining agreement the commissioner shall establish the salary rate or range pursuant to
120	120	4.20the agreement.
121	121	4.21 The commissioner may independently conduct classification studies or, upon request
122	122	4.22of a permanent employee, may investigate the duties of a classified position. If a request is
123	123	4.23denied, the employee must be given a written explanation. The commissioner shall investigate
124	124	4.24the duties of a classified position upon request of an appointing authority. The commissioner
125	125	4.25may reclassify the position, change the title of the position or establish a new class. The
126	126	4.26commissioner shall assign an appropriate salary rate or range to the class. If the class is in
127	127	4.27a collective bargaining unit under the provisions of section 179A.10, and there is an
128	128	4.28applicable provision in the collective bargaining agreement, the commissioner shall establish
129	129	4.29the salary rate or range pursuant to the agreement.
130	130	4.30 Sec. 8. Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:
131	131	4.31 Subd. 1a.Additional unclassified positions.Appointing authorities for the following
132	132	4.32agencies may designate additional unclassified positions according to this subdivision: the
133	133	4Sec. 8.
134	134	25-00394 as introduced01/10/25 REVISOR EB/BM 5.1Departments of Administration; Agriculture; Children, Youth, and Families; Commerce;
135	135	5.2Corrections; Education; Employment and Economic Development; Explore Minnesota
136	136	5.3Tourism; Management and Budget; Health; Human Rights; Human Services; Labor and
137	137	5.4Industry; Natural Resources; Public Safety; Revenue; Transportation; and Veterans Affairs;
138	138	5.5the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of
139	139	5.6Investment; the Office of Administrative Hearings; the Department of Information
140	140	5.7Technology Services; an agency, including the Offices of the Attorney General, Secretary
141	141	5.8of State, and State Auditor; the Minnesota State Colleges and Universities; the Minnesota
142	142	5.9Office of Higher Education; the Perpich Center for Arts Education; Direct Care and
143	143	5.10Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical Services,
144	144	5.11may designate additional unclassified positions.
145	145	5.12 A position designated by an appointing authority according to this subdivision must
146	146	5.13meet the following standards and criteria:
147	147	5.14 (1) the designation of the position would not be contrary to other law relating specifically
148	148	5.15to that agency;
149	149	5.16 (2) the person occupying the position would report directly to the agency head or deputy
150	150	5.17agency head and would be designated as part of the agency head's management team;
151	151	5.18 (3) the duties of the position would involve significant discretion and substantial
152	152	5.19involvement in the development, interpretation, and implementation of agency policy;
153	153	5.20 (4) the duties of the position would not require primarily personnel, accounting, or other
154	154	5.21technical expertise where continuity in the position would be important;
155	155	5.22 (5) there would be a need for the person occupying the position to be accountable to,
156	156	5.23loyal to, and compatible with, the governor and the agency head, the employing statutory
157	157	5.24board or commission, or the employing constitutional officer;
158	158	5.25 (6) the position would be at the level of division or bureau director or assistant to the
159	159	5.26agency head; and
160	160	5.27 (7) the commissioner has approved the designation as being consistent with the standards
161	161	5.28and criteria in this subdivision.
162	162	5.29 Sec. 9. Minnesota Statutes 2024, section 43A.08, subdivision 4, is amended to read:
163	163	5.30 Subd. 4.Length of service for student workers.A person may not only be employed
164	164	5.31as a student worker in the unclassified service under subdivision 1 for more than 36 months.
165	165	5.32Employment at a school that a student attends is not counted for purposes of this 36-month
166	166	5Sec. 9.
167	167	25-00394 as introduced01/10/25 REVISOR EB/BM 6.1limit. Student workers in the Minnesota Department of Transportation SEEDS program
168	168	6.2who are actively involved in a four-year degree program preparing for a professional career
169	169	6.3job in the Minnesota Department of Transportation may be employed as a student worker
170	170	6.4for up to 48 months if they are enrolled in secondary, postsecondary, or graduate study.
171	171	6.5 Sec. 10. Minnesota Statutes 2024, section 43A.11, subdivision 9, is amended to read:
172	172	6.6 Subd. 9.Rejection Nonselection; explanation.If the appointing authority rejects does
173	173	6.7not select a member of the finalist pool who has claimed veteran's preference, the appointing
174	174	6.8authority shall notify the finalist in writing of the reasons for the rejection.
175	175	6.9 Sec. 11. Minnesota Statutes 2024, section 43A.121, is amended to read:
176	176	6.10 43A.121 RANKING OF THE APPLICANT POOL.
177	177	6.11 Applicants referred from a layoff list shall be ranked as provided in the collective
178	178	6.12bargaining agreement or plan established under section 43A.18, under which the layoff list
179	179	6.13was established. All other names in an applicant pool shall be ranked according to the
180	180	6.14veteran's preference provisions of section 43A.11, subdivision 7, and then in descending
181	181	6.15order of the number of skill matches for the vacant position. If any ties in rank remain, those
182	182	6.16names shall appear in alphabetical order.
183	183	6.17 Sec. 12. Minnesota Statutes 2024, section 43A.15, subdivision 2, is amended to read:
184	184	6.18 Subd. 2.Emergency appointments.An appointing authority may make an emergency
185	185	6.19appointment for up to 45 90 working days. No person may be employed in any one agency
186	186	6.20on an emergency basis for more than 45 90 working days in any 12-month period.
187	187	6.21 Sec. 13. Minnesota Statutes 2024, section 43A.15, subdivision 3, is amended to read:
188	188	6.22 Subd. 3.Temporary appointments.The commissioner may authorize an appointing
189	189	6.23authority to make a temporary appointment of up to six months one year. The commissioner
190	190	6.24may, in the best interest of the state, grant an extension of a temporary appointment or
191	191	6.25approve a temporary appointment to fill a vacancy created by an approved leave of absence
192	192	6.26to a maximum period of one year. When practicable, the appointing authority may search
193	193	6.27the employment database for qualified applicants or, when necessary, the commissioner
194	194	6.28may authorize the appointment of any person deemed qualified by the appointing authority.
195	195	6.29 No person shall be employed on a temporary basis in any one agency for more than 12
196	196	6.30months in any 24-month period.
197	197	6Sec. 13.
198	198	25-00394 as introduced01/10/25 REVISOR EB/BM 7.1 Sec. 14. Minnesota Statutes 2024, section 43A.15, subdivision 4, is amended to read:
199	199	7.2 Subd. 4.Provisional appointments.The commissioner may authorize an appointing
200	200	7.3authority to make a provisional appointment if no applicant is suitable or available for
201	201	7.4appointment and the person to be provisionally appointed is qualified in all respects except
202	202	7.5for completion of a licensure or certification requirement.
203	203	7.6 No person shall be employed on a provisional basis for more than six months unless the
204	204	7.7commissioner grants an extension to a maximum of 12 months in the best interest of the
205	205	7.8state. No extension may be granted beyond 12 months except where there is a lack of
206	206	7.9applicants and the provisional appointee is continuing to work to complete the licensure or
207	207	7.10certification requirement.
208	208	7.11 At the request of an appointing authority, the commissioner may authorize the
209	209	7.12probationary appointment of a provisional appointee who has performed satisfactorily for
210	210	7.13at least 60 days and has completed the licensure or certification requirement.
211	211	7.14 Sec. 15. Minnesota Statutes 2024, section 43A.15, subdivision 7, is amended to read:
212	212	7.15 Subd. 7.Appointments for unclassified incumbents of newly classified positions.The
213	213	7.16commissioner may authorize the probationary appointment of an incumbent who has passed
214	214	7.17a qualifying selection process and who has served at least one year in an unclassified position
215	215	7.18which has been placed in the classified service by proper authority.
216	216	7.19 Sec. 16. Minnesota Statutes 2024, section 43A.15, subdivision 12, is amended to read:
217	217	7.20 Subd. 12.Work-training Trainee appointments.The commissioner may authorize
218	218	7.21the probationary appointment of persons who successfully complete on-the-job state training
219	219	7.22programs which that have been approved by the commissioner.
220	220	7.23 Sec. 17. Minnesota Statutes 2024, section 43A.15, subdivision 14, is amended to read:
221	221	7.24 Subd. 14.700-hour on-the-job demonstration experience.(a) The commissioner shall
222	222	7.25consult with the Department of Employment and Economic Development's Vocational
223	223	7.26Rehabilitation Services and State Services for the Blind and other disability experts in
224	224	7.27establishing, reviewing, and modifying the qualifying procedures for applicants whose
225	225	7.28disabilities are of such a significant nature that the applicants are unable to demonstrate
226	226	7.29their abilities in the selection process. The qualifying procedures must consist of up to 700
227	227	7.30hours of on-the-job demonstration experience. The 700-hour on-the-job demonstration
228	228	7.31experience is an alternative, noncompetitive hiring process for qualified applicants with
229	229	7.32disabilities. All permanent executive branch classified positions are eligible for a 700-hour
230	230	7Sec. 17.
231	231	25-00394 as introduced01/10/25 REVISOR EB/BM 8.1on-the-job demonstration experience, and all permanent classified job postings must provide
232	232	8.2information regarding the on-the-job demonstration overview and certification process.
233	233	8.3 (b) The commissioner may shall authorize the probationary appointment of an applicant
234	234	8.4based on the request of the appointing authority that documents that the applicant has
235	235	8.5successfully demonstrated qualifications for the position through completion of an on-the-job
236	236	8.6demonstration experience. A qualified applicant should shall be converted to permanent,
237	237	8.7probationary appointments at the point in the 700-hour on-the-job experience when the
238	238	8.8applicant has demonstrated the ability to perform the essential functions of the job with or
239	239	8.9without reasonable accommodation. The implementation of this subdivision may not be
240	240	8.10deemed a violation of chapter 43A or 363A.
241	241	8.11 (c) The commissioner and the ADA and disability employment director, described in
242	242	8.12section 43A.19, subdivision 1, paragraph (e), are responsible for the administration and
243	243	8.13oversight of the 700-hour on-the-job demonstration experience, including the establishment
244	244	8.14of policies and procedures, data collection and reporting requirements, and compliance.
245	245	8.15 (d) The commissioner or the commissioner's designee shall design and implement a
246	246	8.16training curriculum for the 700-hour on-the-job demonstration experience. All executive
247	247	8.17leaders, managers, supervisors, human resources professionals, affirmative action officers,
248	248	8.18and ADA coordinators must receive annual training on the program.
249	249	8.19 (e) The commissioner or the commissioner's designee shall develop, administer, and
250	250	8.20make public a formal grievance process for individuals in the 700-hour on-the-job
251	251	8.21demonstration experience under this subdivision and supported work program under section
252	252	8.2243A.421, subdivision 2.
253	253	8.23 (f) An appointing authority must make reasonable accommodations in response to a
254	254	8.24request from an applicant with a disability, including providing accommodations in a timely
255	255	8.25manner during the application and hiring process and throughout the 700-hour on-the-job
256	256	8.26demonstration experience. Requirements for accessibility for public records under section
257	257	8.27363A.42, continuing education under section 363A.43, and technology under section 16E.03,
258	258	8.28subdivision 2, clauses (3) and (9), apply to an agency filling an appointment during the
259	259	8.29application and hiring process and through the on-the-job demonstration experience period.
260	260	8.30 Sec. 18. Minnesota Statutes 2024, section 43A.17, subdivision 5, is amended to read:
261	261	8.31 Subd. 5.Salary on demotion; special cases.The commissioner may, upon request of
262	262	8.32an appointing authority, approve payment of an employee with permanent status at a salary
263	263	8.33rate above the maximum of the class to which the employee is demoted. The commissioner
264	264	8Sec. 18.
265	265	25-00394 as introduced01/10/25 REVISOR EB/BM 9.1shall take such action as required by collective bargaining agreements or plans pursuant to
266	266	9.2section 43A.18. If the action is justified by the employee's long or outstanding service,
267	267	9.3exceptional or technical qualifications, age, health, or substantial changes in work assignment
268	268	9.4beyond the control of the employee, the commissioner may approve a rate up to and including
269	269	9.5the employee's salary immediately prior to demotion. Thereafter, so long as the employee
270	270	9.6remains in the same position, the employee shall not be eligible to receive any increase in
271	271	9.7salary until the employee's salary is within the range of the class to which the employee's
272	272	9.8position is allocated unless such increases are specifically provided in collective bargaining
273	273	9.9agreements or plans pursuant to section 43A.18.
274	274	9.10 Sec. 19. Minnesota Statutes 2024, section 43A.181, subdivision 1, is amended to read:
275	275	9.11 Subdivision 1.Donation of vacation time.A state employee may donate up to 12 hours
276	276	9.12of accrued vacation time in any fiscal year to the account established by subdivision 2 for
277	277	9.13the benefit of another state employee. The employee must notify the employee's agency
278	278	9.14head of the amount of accrued vacation time the employee wishes to donate and the name
279	279	9.15of the other state employee who is to benefit from the donation. The agency head shall
280	280	9.16determine the monetary value of the donated time, using the gross salary of the employee
281	281	9.17making the donation. The agency head shall transfer that amount, less deductions for
282	282	9.18applicable taxes and retirement contributions, to the account established by subdivision 2.
283	283	9.19A donation of accrued vacation time is irrevocable once its monetary value has been
284	284	9.20transferred to the account.
285	285	9.21 Sec. 20. Minnesota Statutes 2024, section 43A.1815, is amended to read:
286	286	9.22 43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.
287	287	9.23 (a) In addition to donations under section 43A.181, a state employee may donate a total
288	288	9.24of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account of one
289	289	9.25or more state employees. A state employee may not be paid for more than 80 hours in a
290	290	9.26payroll period during which the employee uses sick leave credited to the employee's account
291	291	9.27as a result of a transfer from another state employee's vacation account.
292	292	9.28 (b) At retirement, eligible state employees may donate additional accumulated vacation
293	293	9.29hours in excess of their vacation payout at time of retirement, into a general pool, even if
294	294	9.30they already have donated 40 hours.
295	295	9.31 (b) (c) The recipient employee must receive donations, as available, for a life-threatening
296	296	9.32condition of the employee or spouse or dependent child that prevents the employee from
297	297	9.33working. A recipient may use program donations retroactively to when all forms of paid
298	298	9Sec. 20.
299	299	25-00394 as introduced01/10/25 REVISOR EB/BM 10.1leave are exhausted if the employee has sufficient donations to cover the period of
300	300	10.2retroactivity. A recipient who receives program donations under this section may use up to
301	301	10.380 hours of program donations after the death of a spouse or dependent child.
302	302	10.4 (c) (d) An applicant for benefits under this section who receives an unfavorable
303	303	10.5determination may select a designee to consult with the commissioner or commissioner's
304	304	10.6designee on the reasons for the determination.
305	305	10.7 (d) (e) The commissioner shall establish procedures under section 43A.04, subdivision
306	306	10.84, for eligibility, duration of need based on individual cases, monitoring and evaluation of
307	307	10.9individual eligibility status, and other topics related to administration of this program.
308	308	10.10Sec. 21. Minnesota Statutes 2024, section 43A.19, subdivision 1, is amended to read:
309	309	10.11 Subdivision 1.Statewide affirmative action program.(a) To assure that positions in
310	310	10.12the executive branch of the civil service are equally accessible to all qualified persons, and
311	311	10.13to eliminate the effects of past and present discrimination, intended or unintended, on the
312	312	10.14basis of protected group status, the commissioner shall adopt and periodically revise, if
313	313	10.15necessary, a statewide affirmative action program. The statewide affirmative action program
314	314	10.16must consist of at least the following:
315	315	10.17 (1) objectives, goals, and policies;
316	316	10.18 (2) procedures, standards, and assumptions to be used by agencies in the preparation of
317	317	10.19agency affirmative action plans, including methods by which goals and timetables are
318	318	10.20established;
319	319	10.21 (3) the analysis of separation patterns to determine the impact on protected group
320	320	10.22members; and
321	321	10.23 (4) requirements for annual objectives and submission of affirmative action progress
322	322	10.24reports from heads of agencies.
323	323	10.25Agency heads must report the data in clause (3) to the state Director of Recruitment,
324	324	10.26Retention and Affirmative Action and the state ADA coordinator, in addition to being
325	325	10.27available to anyone upon request. The commissioner must annually post the aggregate and
326	326	10.28agency-level reports under clause (4) on the agency's website.
327	327	10.29 (b) The commissioner shall establish statewide affirmative action goals for each of the
328	328	10.30federal Equal Employment Opportunity (EEO) occupational categories applicable to state
329	329	10.31employment, using at least the following factors:
330	330	10Sec. 21.
331	331	25-00394 as introduced01/10/25 REVISOR EB/BM 11.1 (1) the percentage of members of each protected class in the recruiting area population
332	332	11.2who have the necessary skills; and
333	333	11.3 (2) the availability for promotion or transfer of current employees who are members of
334	334	11.4protected classes.
335	335	11.5 (c) The commissioner may use any of the following factors in addition to the factors
336	336	11.6required under paragraph (b):
337	337	11.7 (1) the extent of unemployment of members of protected classes in the recruiting area
338	338	11.8population;
339	339	11.9 (2) the existence of training programs in needed skill areas offered by employing agencies
340	340	11.10and other institutions; and
341	341	11.11 (3) the expected number of available positions to be filled.
342	342	11.12 (d) The commissioner shall designate a state director of diversity and equal employment
343	343	11.13opportunity who may be delegated the preparation, revision, implementation, and
344	344	11.14administration of the program. The commissioner of management and budget may place
345	345	11.15the director's position in the unclassified service if the position meets the criteria established
346	346	11.16in section 43A.08, subdivision 1a.
347	347	11.17 (e) The commissioner shall designate a statewide ADA and disability employment
348	348	11.18director. The commissioner may delegate the preparation, revision, implementation,
349	349	11.19evaluation, and administration of the program to the director. The director must administer
350	350	11.20the 700-hour on-the-job demonstration experience under the supported work program and
351	351	11.21disabled veteran's employment programs. The ADA and disability employment director
352	352	11.22shall have education, knowledge, and skills in disability policy, employment, and the ADA.
353	353	11.23The commissioner may place the director's position in the unclassified service if the position
354	354	11.24meets the criteria established in section 43A.08, subdivision 1a.
355	355	11.25 (f) Agency affirmative action plans, including reports and progress, must be posted on
356	356	11.26the agency's public and internal websites within 30 days of being approved. The
357	357	11.27commissioner of management and budget shall post a link to all executive branch
358	358	11.28agency-approved affirmative action plans on its public website. Accessible copies of the
359	359	11.29affirmative action plan must be available to all employees and members of the general public
360	360	11.30upon request.
361	361	11Sec. 21.
362	362	25-00394 as introduced01/10/25 REVISOR EB/BM 12.1 Sec. 22. Minnesota Statutes 2024, section 43A.23, subdivision 1, is amended to read:
363	363	12.2 Subdivision 1.General.(a) The commissioner is authorized to request proposals or to
364	364	12.3negotiate and to enter into contracts with parties which in the judgment of the commissioner
365	365	12.4are best qualified to provide service to the benefit plans. Contracts entered into are not
366	366	12.5subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate
367	367	12.6premium rates and coverage. The commissioner shall consider the cost of the plans,
368	368	12.7conversion options relating to the contracts, service capabilities, character, financial position,
369	369	12.8and reputation of the carriers, and any other factors which that the commissioner deems
370	370	12.9appropriate. Each benefit contract must be for a uniform term of at least one year, but may
371	371	12.10be made automatically renewable from term to term in the absence of notice of termination
372	372	12.11by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by
373	373	12.12chapter 297I on premiums paid to it by the state.
374	374	12.13 (b) All self-insured hospital and medical service products must comply with coverage
375	375	12.14mandates, data reporting, and consumer protection requirements applicable to the licensed
376	376	12.15carrier administering the product, had the product been insured, including chapters 62J,
377	377	12.1662M, and 62Q. Any self-insured products that limit coverage to a network of providers or
378	378	12.17provide different levels of coverage between network and nonnetwork providers shall comply
379	379	12.18with section 62D.123 and geographic access standards for health maintenance organizations
380	380	12.19adopted by the commissioner of health in rule under chapter 62D.
381	381	12.20 (c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered
382	382	12.21under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible
383	383	12.22employee's child to the full extent required under chapters 62A and 62L. Dependent child
384	384	12.23coverage must, at a minimum, extend to an eligible employee's dependent child to the
385	385	12.24limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent
386	386	12.25required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required
387	387	12.26in sections 62A.042 and 62A.302.
388	388	12.27 (d) Beginning January 1, 2010, the health insurance benefit plans offered in the
389	389	12.28commissioner's nonrepresented employees compensation plan under section 43A.18,
390	390	12.29subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include
391	391	12.30an option for a health plan that is compatible with the definition of a high-deductible health
392	392	12.31plan in section 223 of the United States Internal Revenue Code.
393	393	12.32Sec. 23. Minnesota Statutes 2024, section 43A.23, subdivision 2, is amended to read:
394	394	12.33 Subd. 2.Contract to contain statement of benefits.(a) Each contract under sections
395	395	12.3443A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include
396	396	12Sec. 23.
397	397	25-00394 as introduced01/10/25 REVISOR EB/BM 13.1any maximums, limitations, exclusions, and other definitions of benefits the commissioner
398	398	13.2deems necessary or desirable. Each hospital and medical benefits contract shall provide
399	399	13.3benefits at least equal to those required by section 62E.06, subdivision 2.
400	400	13.4 (b) All summaries of benefits describing the hospital and medical service benefits offered
401	401	13.5to state employees must comply with laws and rules for content and clarity applicable to
402	402	13.6the licensed carrier administering the product. Referral procedures must be clearly described.
403	403	13.7The commissioners of commerce and health, as appropriate, shall may review the summaries
404	404	13.8of benefits, whether written or electronic, and advise the commissioner on any changes
405	405	13.9needed to ensure compliance.
406	406	13.10Sec. 24. Minnesota Statutes 2024, section 43A.24, subdivision 1a, is amended to read:
407	407	13.11 Subd. 1a.Opt out.(a) An individual eligible for state-paid hospital, medical, and dental
408	408	13.12benefits under this section has the right to decline those benefits, provided the individual
409	409	13.13declining the benefits can prove health insurance coverage from another source. Any
410	410	13.14individual declining benefits must do so in writing, signed and dated, on a form provided
411	411	13.15by the commissioner.
412	412	13.16 (b) The commissioner must create, and make available in hard copy and online a form
413	413	13.17for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
414	414	13.18must, at a minimum, include notice to the declining individual of the next available
415	415	13.19opportunity and procedure to re-enroll in the benefits.
416	416	13.20 (c) No later than January 15 of each year, the commissioner of management and budget
417	417	13.21must provide a report to the chairs and ranking minority members of the legislative
418	418	13.22committees with jurisdiction over state government finance on the number of employees
419	419	13.23choosing to opt-out of state employee group insurance coverage under this section. The
420	420	13.24report must provide itemized statistics, by agency, and include the total amount of savings
421	421	13.25accrued to each agency resulting from the opt-outs.
422	422	13.26Sec. 25. Minnesota Statutes 2024, section 43A.24, subdivision 2, is amended to read:
423	423	13.27 Subd. 2.Other eligible persons.The following persons are eligible for state paid life
424	424	13.28insurance and hospital, medical, and dental benefits as determined in applicable collective
425	425	13.29bargaining agreements or by the commissioner or by plans pursuant to section 43A.18,
426	426	13.30subdivision 6, or by the Board of Regents for employees of the University of Minnesota
427	427	13.31not covered by collective bargaining agreements. Coverages made available, including
428	428	13.32optional coverages, are as contained in the plan established pursuant to section 43A.18,
429	429	13.33subdivision 2:
430	430	13Sec. 25.
431	431	25-00394 as introduced01/10/25 REVISOR EB/BM 14.1 (1) a member of the state legislature, provided that changes in benefits resulting in
432	432	14.2increased costs to the state shall not be effective until expiration of the term of the members
433	433	14.3of the existing house of representatives. An eligible member of the state legislature may
434	434	14.4decline to be enrolled for state paid coverages by filing a written waiver with the
435	435	14.5commissioner. The waiver shall not prohibit the member from enrolling the member or
436	436	14.6dependents for optional coverages, without cost to the state, as provided for in section
437	437	14.743A.26. A member of the state legislature who returns from a leave of absence to a position
438	438	14.8previously occupied in the civil service shall be eligible to receive the life insurance and
439	439	14.9hospital, medical, and dental benefits to which the position is entitled;
440	440	14.10 (2) an employee of the legislature or an employee of a permanent study or interim
441	441	14.11committee or commission or a state employee on leave of absence to work for the legislature,
442	442	14.12during a regular or special legislative session, as determined by the Legislative Coordinating
443	443	14.13Commission;
444	444	14.14 (3) a judge of the appellate courts or an officer or employee of these courts; a judge of
445	445	14.15the district court, a judge of county court, or a judge of county municipal court; a district
446	446	14.16court referee, judicial officer, court reporter, or law clerk; a district administrator; an
447	447	14.17employee of the Office of the District Administrator that is not in the Second or Fourth
448	448	14.18Judicial District; a court administrator or employee of the court administrator in a judicial
449	449	14.19district under section 480.181, subdivision 1, paragraph (b), and a guardian ad litem program
450	450	14.20employee;
451	451	14.21 (4) a salaried employee of the Public Employees Retirement Association;
452	452	14.22 (5) a full-time military or civilian officer or employee in the unclassified service of the
453	453	14.23Department of Military Affairs whose salary is paid from state funds;
454	454	14.24 (6) an employee of the Minnesota Historical Society, whether paid from state funds or
455	455	14.25otherwise, who is not a member of the governing board;
456	456	14.26 (7) an employee of the regents of the University of Minnesota;
457	457	14.27 (8) (7) notwithstanding section 43A.27, subdivision 3, an employee of the state of
458	458	14.28Minnesota or the regents of the University of Minnesota who is at least 60 and not yet 65
459	459	14.29years of age on July 1, 1982, who is otherwise eligible for employee and dependent insurance
460	460	14.30and benefits pursuant to section 43A.18 or other law, who has at least 20 years of service
461	461	14.31and retires, earlier than required, within 60 days of March 23, 1982; or an employee who
462	462	14.32is at least 60 and not yet 65 years of age on July 1, 1982, who has at least 20 years of state
463	463	14.33service and retires, earlier than required, from employment at Rochester state hospital after
464	464	14.34July 1, 1981; or an employee who is at least 55 and not yet 65 years of age on July 1, 1982,
465	465	14Sec. 25.
466	466	25-00394 as introduced01/10/25 REVISOR EB/BM 15.1and is covered by the Minnesota State Retirement System correctional employee retirement
467	467	15.2plan or the State Patrol retirement fund, who has at least 20 years of state service and retires,
468	468	15.3earlier than required, within 60 days of March 23, 1982. For purposes of this clause, a person
469	469	15.4retires when the person terminates active employment in state or University of Minnesota
470	470	15.5service and applies for a retirement annuity. Eligibility shall cease when the retired employee
471	471	15.6attains the age of 65, or when the employee chooses not to receive the annuity that the
472	472	15.7employee has applied for. The retired employee shall be eligible for coverages to which the
473	473	15.8employee was entitled at the time of retirement, subject to any changes in coverage through
474	474	15.9collective bargaining or plans established pursuant to section 43A.18, for employees in
475	475	15.10positions equivalent to that from which retired, provided that the retired employee shall not
476	476	15.11be eligible for state-paid life insurance. Coverages shall be coordinated with relevant health
477	477	15.12insurance benefits provided through the federally sponsored Medicare program;
478	478	15.13 (9) (8) an employee of an agency of the state of Minnesota identified through the process
479	479	15.14provided in this paragraph who is eligible to retire prior to age 65. The commissioner and
480	480	15.15the exclusive representative of state employees shall enter into agreements under section
481	481	15.16179A.22 to identify employees whose positions are in programs that are being permanently
482	482	15.17eliminated or reduced due to federal or state policies or practices. Failure to reach agreement
483	483	15.18identifying these employees is not subject to impasse procedures provided in chapter 179A.
484	484	15.19The commissioner must prepare a plan identifying eligible employees not covered by a
485	485	15.20collective bargaining agreement in accordance with the process outlined in section 43A.18,
486	486	15.21subdivisions 2 and 3. For purposes of this paragraph, a person retires when the person
487	487	15.22terminates active employment in state service and applies for a retirement annuity. Eligibility
488	488	15.23ends as provided in the agreement or plan, but must cease at the end of the month in which
489	489	15.24the retired employee chooses not to receive an annuity, or the employee is eligible for
490	490	15.25employer-paid health insurance from a new employer. The retired employees shall be eligible
491	491	15.26for coverages to which they were entitled at the time of retirement, subject to any changes
492	492	15.27in coverage through collective bargaining or plans established under section 43A.18 for
493	493	15.28employees in positions equivalent to that from which they retired, provided that the retired
494	494	15.29employees shall not be eligible for state-paid life insurance;
495	495	15.30 (10) (9) employees of the state Board of Public Defense, with eligibility determined by
496	496	15.31the state Board of Public Defense in consultation with the commissioner of management
497	497	15.32and budget; and
498	498	15.33 (11) (10) employees of supporting organizations of Enterprise Minnesota, Inc., established
499	499	15.34after July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting
500	500	15.35organization.
501	501	15Sec. 25.
502	502	25-00394 as introduced01/10/25 REVISOR EB/BM 16.1 Sec. 26. Minnesota Statutes 2024, section 43A.27, subdivision 2, is amended to read:
503	503	16.2 Subd. 2.Elective eligibility.The following persons, if not otherwise covered by section
504	504	16.343A.24, may elect coverage for themselves or their dependents at their own expense:
505	505	16.4 (1) a state employee, including persons on layoff from a civil service position as provided
506	506	16.5in collective bargaining agreements or a plan established pursuant to section 43A.18;
507	507	16.6 (2) an employee of the Board of Regents of the University of Minnesota, including
508	508	16.7persons on layoff, as provided in collective bargaining agreements or by the Board of
509	509	16.8Regents;
510	510	16.9 (3) (2) an officer or employee of the State Agricultural Society, Center for Rural Policy
511	511	16.10and Development, Agricultural Utilization Research Institute, State Horticultural Society,
512	512	16.11Sibley House Association, Minnesota Humanities Center Commission, Minnesota Area
513	513	16.12Industry Labor Management Councils, Minnesota International Center, Minnesota Academy
514	514	16.13of Science, Science Museum of Minnesota, Minnesota Safety Council, state Office of
515	515	16.14Disabled American Veterans, state Office of the American Legion and its auxiliary, state
516	516	16.15Office of Veterans of Foreign Wars and its auxiliary, or state Office of the Military Order
517	517	16.16of the Purple Heart;
518	518	16.17 (4) (3) a civilian employee of the adjutant general who is paid from federal funds and
519	519	16.18who is not eligible for benefits from any federal civilian employee group life insurance or
520	520	16.19health benefits program;
521	521	16.20 (5) (4) an officer or employee of the State Capitol Affinity Plus Federal Credit Union
522	522	16.21or the Highway Credit Union; and
523	523	16.22 (6) (5) an employee of the joint underwriting association pursuant to section 62I.121 or
524	524	16.23Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner
525	525	16.24determines that making these employees eligible to purchase this coverage would cause the
526	526	16.25state employee group insurance program to lose its status as a governmental plan or would
527	527	16.26cause the program to be treated as a multiemployer welfare arrangement.
528	528	16.27Sec. 27. Minnesota Statutes 2024, section 43A.33, subdivision 3, is amended to read:
529	529	16.28 Subd. 3.Procedures.(a) Procedures for discipline and discharge of employees covered
530	530	16.29by collective bargaining agreements shall be governed by the agreements. Procedures for
531	531	16.30employees not covered by a collective bargaining agreement shall be governed by this
532	532	16.31subdivision and by the commissioner's and managerial plans.
533	533	16Sec. 27.
534	534	25-00394 as introduced01/10/25 REVISOR EB/BM 17.1 (b) For discharge, suspension without pay or demotion, no later than the effective date
535	535	17.2of such action, a permanent classified employee not covered by a collective bargaining
536	536	17.3agreement shall be given written notice by the appointing authority. The content of that
537	537	17.4notice as well as the employee's right to reply to the appointing authority shall be as
538	538	17.5prescribed in the grievance procedure contained in the applicable plan established pursuant
539	539	17.6to section 43A.18. The notice shall also include a statement that the employee may elect to
540	540	17.7appeal the action to the Bureau of Mediation Services within 30 calendar days following
541	541	17.8the effective date of the disciplinary action. A copy of the notice and the employee's reply,
542	542	17.9if any, shall be filed by the appointing authority with the commissioner no later than ten
543	543	17.10calendar days following the effective date of the disciplinary action. The commissioner
544	544	17.11shall have final authority to decide whether the appointing authority shall settle the dispute
545	545	17.12prior to the hearing provided under this subdivision 4.
546	546	17.13 (c) For discharge, suspension, or demotion of an employee serving an initial probationary
547	547	17.14period, and for noncertification in any subsequent probationary period, grievance procedures
548	548	17.15shall be as provided in the plan established pursuant to section 43A.18.
549	549	17.16 (d) Within ten days of receipt of the employee's written notice of appeal, the commissioner
550	550	17.17of the Bureau of Mediation Services shall provide both parties with a list of potential
551	551	17.18arbitrators according to the rules of the Bureau of Mediation Services to hear the appeal.
552	552	17.19The process of selecting the arbitrator from the list shall be determined by the plan.The
553	553	17.20hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services. If the
554	554	17.21arbitrator finds, based on the hearing record, that the action appealed was not taken by the
555	555	17.22appointing authority for just cause, the employee shall be reinstated to the position, or an
556	556	17.23equal position in another division within the same agency, without loss of pay. If the arbitrator
557	557	17.24finds that there exists sufficient grounds for institution of the appointing authority's action
558	558	17.25but the hearing record establishes extenuating circumstances, the arbitrator may reinstate
559	559	17.26the employee, with full, partial, or no pay, or may modify the appointing authority's action.
560	560	17.27The appointing authority shall bear the costs of the arbitrator for hearings provided for in
561	561	17.28this section.
562	562	17.29Sec. 28. Minnesota Statutes 2024, section 43A.346, subdivision 2, is amended to read:
563	563	17.30 Subd. 2.Eligibility.(a) This section applies to a terminated state employee who:
564	564	17.31 (1) for at least the five years immediately preceding separation under clause clauses (2)
565	565	17.32and (3), was regularly scheduled to work 1,044 or more hours per year in a position covered
566	566	17.33by a pension plan administered by the Minnesota State Retirement System or the Public
567	567	17.34Employees Retirement Association;
568	568	17Sec. 28.
569	569	25-00394 as introduced01/10/25 REVISOR EB/BM 18.1 (2) terminated state or Metropolitan Council employment;
570	570	18.2 (3) at the time of termination under clause (2), met the age and service requirements
571	571	18.3necessary to receive an unreduced retirement annuity from the plan and satisfied requirements
572	572	18.4for the commencement of the retirement annuity or, for a terminated employee under the
573	573	18.5unclassified employees retirement plan, met the age and service requirements necessary to
574	574	18.6receive an unreduced retirement annuity from the plan and satisfied requirements for the
575	575	18.7commencement of the retirement annuity or elected a lump-sum payment; and
576	576	18.8 (4) agrees to accept a postretirement option position with the same or a different
577	577	18.9appointing authority, working a reduced schedule that is both (i) a reduction of at least 25
578	578	18.10percent from the employee's number of previously regularly scheduled work hours; and (ii)
579	579	18.111,044 hours or less in state or Metropolitan Council service.
580	580	18.12 (b) For purposes of this section, an unreduced retirement annuity includes a retirement
581	581	18.13annuity computed under a provision of law which permits retirement, without application
582	582	18.14of an earlier retirement reduction factor, whenever age plus years of allowable service total
583	583	18.15at least 90.
584	584	18.16 (c) For purposes of this section, as it applies to state employees who are members of the
585	585	18.17Public Employees Retirement Association who are at least age 62, the length of separation
586	586	18.18requirement and termination of service requirement prohibiting return to work agreements
587	587	18.19under section 353.01, subdivisions 11a and 28, are not applicable.
588	588	18.20Sec. 29. Minnesota Statutes 2024, section 43A.346, subdivision 6, is amended to read:
589	589	18.21 Subd. 6.Duration.Postretirement option employment is for an initial period not to
590	590	18.22exceed one year. During that period, the appointing authority may not modify the conditions
591	591	18.23of employment specified in the written offer without the person's consent, except as required
592	592	18.24by law or by the collective bargaining agreement or compensation plan applicable to the
593	593	18.25person. At the end of the initial period, the appointing authority has sole discretion to
594	594	18.26determine if the offer of a postretirement option position will be renewed, renewed with
595	595	18.27modifications, or terminated. Postretirement option employment may be renewed for periods
596	596	18.28of up to one year, not to exceed a total duration of five years. No person may be employed
597	597	18.29in one or a combination of postretirement option positions under this section for a total of
598	598	18.30more than five years.
599	599	18Sec. 29.
600	600	25-00394 as introduced01/10/25 REVISOR EB/BM 19.1 Sec. 30. Minnesota Statutes 2024, section 43A.36, subdivision 1, is amended to read:
601	601	19.2 Subdivision 1.Cooperation; state agencies.(a) The commissioner may delegate
602	602	19.3administrative functions associated with the duties of the commissioner to appointing
603	603	19.4authorities who have the capability to perform such functions when the commissioner
604	604	19.5determines that it is in the best interests of the state civil service. The commissioner shall
605	605	19.6consult with agencies and agencies shall cooperate as appropriate in implementation of this
606	606	19.7chapter.
607	607	19.8 (b) The commissioner, in conjunction with appointing authorities, shall analyze and
608	608	19.9assess current and future human resource requirements of the civil service and coordinate
609	609	19.10personnel actions throughout the civil service to meet the requirements. The commissioner
610	610	19.11shall provide recruiting assistance and make the applicant database available to appointing
611	611	19.12authorities to use in making appointments to positions in the unclassified service.
612	612	19.13 (c) The head of each agency in the executive branch shall designate an agency personnel
613	613	19.14officer. The agency personnel officer shall be accountable to the agency head for all personnel
614	614	19.15functions prescribed by laws, rules, collective bargaining agreements, the commissioner
615	615	19.16and the agency head. Except when otherwise prescribed by the agency head in a specific
616	616	19.17instance, the personnel officer shall be assumed to be the authority accountable to the agency
617	617	19.18head over any other officer or employee in the agency for personnel functions.
618	618	19.19 (d) The head of each agency in the executive branch shall designate an affirmative action
619	619	19.20officer who shall have primary responsibility for the administration of the agency's
620	620	19.21affirmative action plan. The officer shall report directly to the head of the agency on
621	621	19.22affirmative action matters.
622	622	19.23 (e) Pursuant to section 43A.431, the head of each agency in the executive branch shall
623	623	19.24designate an ADA coordinator who shall have primary responsibility for the administration
624	624	19.25of ADA policies, procedures, trainings, requests, and arbitration. The coordinator shall
625	625	19.26report directly to the commissioner agency head.
626	626	19.27Sec. 31. Minnesota Statutes 2024, section 43A.421, is amended to read:
627	627	19.28 43A.421 SUPPORTED WORK PROGRAM.
628	628	19.29 Subdivision 1.Program established.Active positions within agencies of state
629	629	19.30government may be selected for inclusion for a supported work program for persons with
630	630	19.31significant disabilities. A full-time position may be shared by up to three persons with
631	631	19.32significant disabilities and their job coach. The job coach is not a state employee within the
632	632	19.33scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach
633	633	19Sec. 31.
634	634	25-00394 as introduced01/10/25 REVISOR EB/BM 20.1holds another position within the scope of section 43A.02, subdivision 21, or 179A.03,
635	635	20.2subdivision 14. All classified supported work job postings need to link to the overview and
636	636	20.3application process for the supported work program. The commissioner is responsible for
637	637	20.4the establishment, administration, and oversight of a program providing customized
638	638	20.5employment opportunities for individuals with significant disabilities as defined in United
639	639	20.6States Code, title 29, section 705(21). Employees in the customized employment program
640	640	20.7are appointed to a customized employment position by matching the skills offered by eligible
641	641	20.8individuals to specific tasks and projects within agencies, rather than to an existing job
642	642	20.9classification. When job coach services are necessary for the individuals employed through
643	643	20.10this program, the job coach is not a state employee within the scope of section 43A.02,
644	644	20.11subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position
645	645	20.12within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.
646	646	20.13 Subd. 2.Responsibilities Customized employment.(a) The commissioner is responsible
647	647	20.14for the administration and oversight of the supported work customized employment program,
648	648	20.15including the establishment of policies and procedures, eligibility, data collection and
649	649	20.16reporting requirements, and compliance.
650	650	20.17 (b) The commissioner or the commissioner's designee shall design and implement a
651	651	20.18training curriculum for the supported work customized employment program. All executive
652	652	20.19leaders, managers, supervisors, human resources professionals, affirmative action officers,
653	653	20.20and Americans with Disabilities Act coordinators must receive annual training regarding
654	654	20.21the program.
655	655	20.22 (c) The commissioner or the commissioner's designee shall develop, administer, and
656	656	20.23make public a formal grievance process for individuals in the program.
657	657	20.24Sec. 32. REPEALER.
658	658	20.25 Minnesota Statutes 2024, sections 43A.05, subdivision 6; 43A.315; 43A.317, subdivisions
659	659	20.261, 2, 3, 5, 6, 7, 8, 9, 10, and 12; and 43A.318, subdivisions 1, 2, 4, and 5, are repealed.
660	660	20Sec. 32.
661	661	25-00394 as introduced01/10/25 REVISOR EB/BM 43A.05 POWERS AND RESPONSIBILITIES; PERSONNEL.
662	662	Subd. 6.Allocation.The amount recommended by the Legislative Coordinating Commission
663	663	pursuant to subdivision 5 to make comparability adjustments shall be submitted to the full legislature
664	664	by March 1 of each odd-numbered year. The legislature may accept, reject, or modify the amount
665	665	recommended. The commissioner shall allocate the amount appropriated by the legislature, on a
666	666	pro rata basis, if necessary, to the proper accounts for distribution to incumbents of classes which
667	667	have been approved for comparability adjustments.
668	668	Funds appropriated for purposes of comparability adjustments for state employees shall be
669	669	drawn exclusively from and shall not be in addition to the funds appropriated for salary supplements
670	670	or other employee compensation. Funds not used for purposes of comparability adjustments shall
671	671	revert to the appropriate fund.
672	672	43A.315 STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE INCENTIVE
673	673	PROGRAM.
674	674	The commissioner of management and budget may develop and implement a program that
675	675	creates an incentive for efficient use by state employees of State Employee Group Insurance Program
676	676	(SEGIP). The program may reward employees covered by SEGIP as a group if per capita employee
677	677	health care costs paid by SEGIP for a calendar year prove to be less than estimated by the
678	678	commissioner prior to the beginning of the calendar year. The reward may consist of payments of
679	679	one-half of the cost-savings into the employees' health reimbursement accounts, to be made no later
680	680	than June 30 of the following calendar year.
681	681	43A.317 MINNESOTA EMPLOYEES INSURANCE PROGRAM.
682	682	Subdivision 1.Intent.The legislature finds that the creation of a statewide program to provide
683	683	employers with the advantages of a large pool for insurance purchasing would advance the welfare
684	684	of the citizens of the state.
685	685	Subd. 2.Definitions.(a) Scope. For the purposes of this section, the terms defined have the
686	686	meaning given them.
687	687	(b) Commissioner. "Commissioner" means the commissioner of management and budget.
688	688	(c) Eligible employee. "Eligible employee" means an employee eligible to participate in the
689	689	program under the terms described in subdivision 6.
690	690	(d) Eligible employer. "Eligible employer" means an employer eligible to participate in the
691	691	program under the terms described in subdivision 5.
692	692	(e) Eligible individual. "Eligible individual" means a person eligible to participate in the
693	693	program under the terms described in subdivision 6.
694	694	(f) Employee. "Employee" means an employee of an eligible employer. "Employee" includes
695	695	a sole proprietor, partner of a partnership, member of a limited liability company, or independent
696	696	contractor.
697	697	(g) Employer. "Employer" means a private person, firm, corporation, partnership, limited
698	698	liability company, association, or other entity actively engaged in business or public services.
699	699	"Employer" includes both for-profit and nonprofit entities.
700	700	(h) Program. "Program" means the Minnesota employees insurance program created by this
701	701	section.
702	702	Subd. 3.Administration.After consulting with the chairs of the senate Governmental Operations
703	703	and Veterans Committee and the house of representatives Governmental Operations and Veterans
704	704	Affairs Policy Committee, the commissioner may determine when the program provided under this
705	705	section is available. When the commissioner makes the program available, the commissioner shall,
706	706	consistent with the provisions of this section, administer the program and determine its coverage
707	707	options, funding and premium arrangements, contractual arrangements, and all other matters
708	708	necessary to administer the program. The commissioner's contracting authority for the program,
709	709	including authority for competitive bidding and negotiations, is governed by section 43A.23.
710	710	Subd. 5.Employer eligibility.(a) Procedures. All employers are eligible for coverage through
711	711	the program subject to the terms of this subdivision. The commissioner shall establish procedures
712	712	for an employer to apply for coverage through the program.
713	713	1R
714	714	APPENDIX
715	715	Repealed Minnesota Statutes: 25-00394 (b) Term. The initial term of an employer's coverage may be for up to two years from the
716	716	effective date of the employer's application. After that, coverage will be automatically renewed for
717	717	an additional term unless the employer gives notice of withdrawal from the program according to
718	718	procedures established by the commissioner or the commissioner gives notice to the employer of
719	719	the discontinuance of the program. The commissioner may establish conditions under which an
720	720	employer may withdraw from the program prior to the expiration of a term, including by reason of
721	721	an increase in health coverage premiums of 50 percent or more from one insurance year to the next.
722	722	An employer that withdraws from the program may not reapply for coverage for a period of time
723	723	equal to its initial term of coverage.
724	724	(c) Minnesota work force. An employer is not eligible for coverage through the program if
725	725	five percent or more of its eligible employees work primarily outside Minnesota, except that an
726	726	employer may apply to the program on behalf of only those employees who work primarily in
727	727	Minnesota.
728	728	(d) Employee participation; aggregation of groups. An employer is not eligible for coverage
729	729	through the program unless its application includes all eligible employees who work primarily in
730	730	Minnesota, except employees who waive coverage as permitted by subdivision 6. Private entities
731	731	that are eligible to file a combined tax return for purposes of state tax laws are considered a single
732	732	employer, except as otherwise approved by the commissioner.
733	733	(e) Private employer. A private employer is not eligible for coverage unless it has two or more
734	734	eligible employees in the state of Minnesota. If an employer has only two eligible employees and
735	735	one is the spouse, child, sibling, parent, or grandparent of the other, the employer must be a
736	736	Minnesota-domiciled employer and have paid Social Security or self-employment tax on behalf of
737	737	both eligible employees.
738	738	(f) Minimum participation. The commissioner must require as a condition of employer
739	739	eligibility that at least 75 percent of its eligible employees who have not waived coverage participate
740	740	in the program. The participation level of eligible employees must be determined at the initial
741	741	offering of coverage and at the renewal date of coverage. For purposes of this section, waiver of
742	742	coverage includes only waivers due to coverage under another group health benefit plan.
743	743	(g) Employer contribution. The commissioner must require as a condition of employer
744	744	eligibility that the employer contribute at least 50 percent toward the cost of the premium of the
745	745	employee and may require that the contribution toward the cost of coverage is structured in a way
746	746	that promotes price competition among the coverage options available through the program.
747	747	(h) Enrollment cap. The commissioner may limit employer enrollment in the program if
748	748	necessary to avoid exceeding the program's reserve capacity.
749	749	Subd. 6.Individual eligibility.(a) Procedures. The commissioner shall establish procedures
750	750	for eligible employees and other eligible individuals to apply for coverage through the program.
751	751	(b) Employees. An employer shall determine when it applies to the program the criteria its
752	752	employees must meet to be eligible for coverage under its plan. An employer may subsequently
753	753	change the criteria annually or at other times with approval of the commissioner. The criteria must
754	754	provide that new employees become eligible for coverage after a probationary period of at least 30
755	755	days, but no more than 90 days.
756	756	(c) Other individuals. An employer may elect to cover under its plan:
757	757	(1) the spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision
758	758	2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent
759	759	grandchildren to the extent required in sections 62A.042 and 62A.302;
760	760	(2) a retiree who is eligible to receive a pension or annuity from the employer and a covered
761	761	retiree's spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision
762	762	2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent
763	763	grandchildren to the extent required in sections 62A.042 and 62A.302;
764	764	(3) the surviving spouse, dependent children to the limiting age as defined in section 62Q.01,
765	765	subdivision 2a, disabled children, and dependent grandchildren of a deceased employee or retiree,
766	766	if the spouse, children, or grandchildren were covered at the time of the death;
767	767	(4) a covered employee who becomes disabled, as provided in sections 62A.147 and 62A.148;
768	768	or
769	769	2R
770	770	APPENDIX
771	771	Repealed Minnesota Statutes: 25-00394 (5) any other categories of individuals for whom group coverage is required by state or federal
772	772	law.
773	773	An employer shall determine when it applies to the program the criteria individuals in these
774	774	categories must meet to be eligible for coverage. An employer may subsequently change the criteria
775	775	annually, or at other times with approval of the commissioner. The criteria for dependent children
776	776	to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent
777	777	grandchildren may be no more inclusive than the criteria under section 43A.18, subdivision 2. This
778	778	paragraph shall not be interpreted as relieving the program from compliance with any federal and
779	779	state continuation of coverage requirements.
780	780	(d) Waiver and late entrance. An eligible individual may waive coverage at the time the
781	781	employer joins the program or when coverage first becomes available. The commissioner may
782	782	establish a preexisting condition exclusion of not more than 18 months for late entrants as defined
783	783	in section 62L.02, subdivision 19.
784	784	(e) Continuation coverage. The program shall provide all continuation coverage required by
785	785	state and federal law.
786	786	Subd. 7.Coverage.Coverage is available through the program beginning on July 1, 1993. Until
787	787	an arrangement is in place to provide coverage through a transfer of risk to one or more carriers
788	788	regulated under chapter 62A, 62C, or 62D, the commissioner shall solicit bids under section 43A.23,
789	789	from carriers regulated under chapters 62A, 62C, and 62D, to provide coverage of eligible
790	790	individuals. The commissioner shall provide coverage through contracts with carriers, unless the
791	791	commissioner receives no reasonable bids from carriers.
792	792	(a) Health coverage. Health coverage is available to all employers in the program. The
793	793	commissioner shall attempt to establish health coverage options that have strong care management
794	794	features to control costs and promote quality and shall attempt to make a choice of health coverage
795	795	options available. Health coverage for a retiree who is eligible for the federal Medicare program
796	796	must be administered as though the retiree is enrolled in Medicare parts A and B. To the extent
797	797	feasible as determined by the commissioner and in the best interests of the program, the commissioner
798	798	shall model coverage after the plan established in section 43A.18, subdivision 2. Health coverage
799	799	must include at least the benefits required of a carrier regulated under chapter 62A, 62C, or 62D
800	800	for comparable coverage. Coverage under this paragraph must not be provided as part of the health
801	801	plans available to state employees.
802	802	(b) Optional coverages. In addition to offering health coverage, the commissioner may arrange
803	803	to offer dental coverage through the program. Employers with health coverage may choose to offer
804	804	dental coverage according to the terms established by the commissioner.
805	805	(c) Open enrollment. The program must meet all underwriting requirements of chapter 62L
806	806	and must provide periodic open enrollments for eligible individuals for those coverages where a
807	807	choice exists.
808	808	(d) Technical assistance. The commissioner may arrange for technical assistance and referrals
809	809	for eligible employers in areas such as health promotion and wellness, employee benefits structure,
810	810	tax planning, and health care analysis services as described in section 62J.2930.
811	811	Subd. 8.Premiums.(a) Payments. Employers enrolled in the program shall pay premiums
812	812	according to terms established by the commissioner. If an employer fails to make the required
813	813	payments, the commissioner may cancel coverage and pursue other civil remedies.
814	814	(b) Rating method. The commissioner shall determine the premium rates and rating method
815	815	for the program. The rating method for eligible small employers must meet or exceed the
816	816	requirements of chapter 62L. The rating methods must recover in premiums all of the ongoing costs
817	817	for state administration and for maintenance of a premium stability and claim fluctuation reserve.
818	818	On June 30, 1999, after paying all necessary and reasonable expenses, the commissioner must apply
819	819	up to $2,075,000 of any remaining balance in the Minnesota employees' insurance trust fund to
820	820	repayment of any amounts drawn or expended for this program from the health care access fund.
821	821	(c) Taxes and assessments. To the extent that the program operates as a self-insured group,
822	822	the premiums paid to the program are not subject to the taxes imposed by chapter 297I, but the
823	823	program is subject to a Minnesota Comprehensive Health Association assessment under section
824	824	62E.11.
825	825	Subd. 9.Minnesota employees insurance trust fund.(a) Contents. The Minnesota employees
826	826	insurance trust fund in the state treasury consists of deposits received from eligible employers and
827	827	3R
828	828	APPENDIX
829	829	Repealed Minnesota Statutes: 25-00394 individuals, contractual settlements or rebates relating to the program, investment income or losses,
830	830	and direct appropriations.
831	831	(b) Appropriation. All money in the fund is appropriated to the commissioner to pay insurance
832	832	premiums, approved claims, refunds, administrative costs, and other costs necessary to administer
833	833	the program.
834	834	(c) Reserves. For any coverages for which the program does not contract to transfer full financial
835	835	responsibility, the commissioner shall establish and maintain reserves:
836	836	(1) for claims in process, incomplete and unreported claims, premiums received but not yet
837	837	earned, and all other accrued liabilities; and
838	838	(2) to ensure premium stability and the timely payment of claims in the event of adverse claims
839	839	experience. The reserve for premium stability and claim fluctuations must be established according
840	840	to the standards of section 62C.09, subdivision 3, except that the reserve may exceed the upper
841	841	limit under this standard until July 1, 1997.
842	842	(d) Investments. The State Board of Investment shall invest the fund's assets according to
843	843	section 11A.24. Investment income and losses attributable to the fund must be credited to the fund.
844	844	Subd. 10.Program status.The Minnesota employees insurance program is a state program to
845	845	provide the advantages of a large pool to small employers for purchasing health coverage, other
846	846	coverages, and related services from insurance companies, health maintenance organizations, and
847	847	other organizations. The program is not an insurance company. Coverage under this program shall
848	848	be considered a certificate of insurance or similar evidence of coverage and is subject to all applicable
849	849	requirements of chapters 60A, 62A, 62C, 62E, 62H, 62L, and 72A, and is subject to regulation by
850	850	the commissioner of commerce to the extent applicable.
851	851	Subd. 12.Status of agents.Notwithstanding sections 60K.49 and 72A.07, the program may
852	852	use, and pay referral fees, commissions, or other compensation to, agents licensed as insurance
853	853	producers under chapter 60K or licensed under section 62C.17, regardless of whether the agents
854	854	are appointed to represent the particular health carriers or community integrated service networks
855	855	that provide the coverage available through the program. When acting under this subdivision, an
856	856	agent is not an agent of the health carrier or community integrated service network, with respect to
857	857	that transaction.
858	858	43A.318 PUBLIC EMPLOYEES GROUP LONG-TERM CARE INSURANCE
859	859	PROGRAM.
860	860	Subdivision 1.Definitions.(a) Scope. For the purposes of this section, the terms defined have
861	861	the meanings given them.
862	862	(b) Eligible person. "Eligible person" means:
863	863	(1) a person who is eligible for insurance and benefits under section 43A.24;
864	864	(2) a person who at the time of separation from employment was eligible to purchase coverage
865	865	at personal expense under section 43A.27, subdivision 3, regardless of whether the person elected
866	866	to purchase this coverage;
867	867	(3) a spouse of a person described in clause (1) or (2), regardless of the enrollment status in the
868	868	program of the person described in clause (1) or (2); or
869	869	(4) a parent of a person described in clause (1), regardless of the enrollment status in the program
870	870	of the person described in clause (1).
871	871	(c) Program. "Program" means the statewide public employees long-term care insurance
872	872	program created under subdivision 2.
873	873	(d) Qualified vendor. "Qualified vendor" means an entity licensed or authorized to underwrite,
874	874	provide, or administer group long-term care insurance benefits in this state.
875	875	Subd. 2.Program creation; general provisions.(a) The commissioner may administer a
876	876	program to make long-term care coverage available to eligible persons. The commissioner may
877	877	determine the program's funding arrangements, request bids from qualified vendors, and negotiate
878	878	and enter into contracts with qualified vendors. Contracts are not subject to the requirements of
879	879	section 16C.16 or 16C.19. Contracts must be for a uniform term of at least one year, but may be
880	880	made automatically renewable from term to term in the absence of notice of termination by either
881	881	party. The program may not be self-insured until the commissioner has completed an actuarial study
882	882	4R
883	883	APPENDIX
884	884	Repealed Minnesota Statutes: 25-00394 of the program and reported the results of the study to the legislature and self-insurance has been
885	885	specifically authorized by law.
886	886	(b) The program may provide coverage for home, community, and institutional long-term care
887	887	and any other benefits as determined by the commissioner. Coverage is optional. The enrolled
888	888	eligible person must pay the full cost of the coverage.
889	889	(c) The commissioner shall promote activities that attempt to raise awareness of the need for
890	890	long-term care insurance among residents of the state and encourage the increased prevalence of
891	891	long-term care coverage. These activities must include the sharing of knowledge gained in the
892	892	development of the program.
893	893	(d) The commissioner may employ and contract with persons and other entities to perform the
894	894	duties under this section and may determine their duties and compensation consistent with this
895	895	chapter.
896	896	(e) The benefits provided under this section are not terms and conditions of employment as
897	897	defined under section 179A.03, subdivision 19, and are not subject to collective bargaining.
898	898	(f) The commissioner shall establish underwriting criteria for entry of all eligible persons into
899	899	the program. Eligible persons who would be immediately eligible for benefits may not enroll.
900	900	(g) Eligible persons who meet underwriting criteria may enroll in the program upon hiring and
901	901	at other times established by the commissioner.
902	902	(h) An eligible person enrolled in the program may continue to participate in the program even
903	903	if an event, such as termination of employment, changes the person's employment status.
904	904	(i) Participating public employee pension plans and public employers may provide automatic
905	905	pension or payroll deduction for payment of long-term care insurance premiums to qualified vendors
906	906	contracted with under this section.
907	907	(j) The premium charged to program enrollees must include an administrative fee to cover all
908	908	program expenses incurred in addition to the cost of coverage. All fees collected are appropriated
909	909	to the commissioner for the purpose of administrating the program.
910	910	Subd. 4.Long-term care insurance trust fund.(a) The long-term care insurance trust fund
911	911	in the state treasury consists of deposits of the premiums received from persons enrolled in the
912	912	program. All money in the fund is appropriated to the commissioner to pay premiums, claims,
913	913	refunds, administrative costs, and other related service costs. The commissioner shall reserve an
914	914	amount of money sufficient to cover the actuarially estimated costs of claims incurred but unpaid.
915	915	The trust fund must be used solely for the purpose of the program.
916	916	(b) The State Board of Investment shall invest the money in the fund according to section
917	917	11A.24. Investment income and losses attributable to the fund must be credited to or deducted from
918	918	the fund.
919	919	Subd. 5.Private sources.This section does not prohibit or limit individuals or local governments
920	920	from purchasing long-term care insurance through other private sources.
921	921	5R
922	922	APPENDIX
923	923	Repealed Minnesota Statutes: 25-00394