1.1 A bill for an act
1.2 relating to state government; reinstating legislative review of compensation plans
1.3 and salaries; amending Minnesota Statutes 2024, sections 3.855, subdivisions 2,
1.4 3, 6; 43A.05, subdivision 3; 43A.18, subdivisions 2, 3, 9.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 3.855, subdivision 2, is amended to read:
1.7 Subd. 2.Unrepresented state employee compensation.(a) The commissioner of
1.8management and budget shall submit to the chair of the commission any compensation
1.9plans or salaries prepared under section 43A.18, subdivisions 2, 3, 3b, and 4. The chancellor
1.10of the Minnesota State Colleges and Universities shall submit any compensation plan under
1.11section 43A.18, subdivision 3a. If the commission disapproves a compensation plan or
1.12salary, the commission must specify in writing to the parties the portions of the compensation
1.13plan or salaries with which the commission disagrees and the commission's reasons for
1.14disapproval. If the commission approves a compensation plan or salary, the commission
1.15must submit the compensation plan or salaries to the legislature to be accepted or rejected
1.16under this section.
1.17 (b) When the legislature is not in session, the commission may give interim approval to
1.18a salary or compensation plan. The commission must submit the approved salaries and
1.19compensation plans to the entire legislature for ratification at a special legislative session
1.20called to consider the salary and compensation plans or at the next regular legislative session.
1.21The commission's approval or disapproval is not binding on the legislature.
1.22 (b) (c) When the legislature is not in session, the proposed salary or compensation plan
1.23must be implemented upon its submission to approval by the commission, and state
1Section 1.
25-04724 as introduced03/19/25 REVISOR RSI/HL
SENATE
STATE OF MINNESOTA
S.F. No. 3431NINETY-FOURTH SESSION
(SENATE AUTHORS: MCEWEN)
OFFICIAL STATUSD-PGDATE
Introduction and first reading04/24/2025
Referred to State and Local Government 2.1employees covered by the proposed plan or salary do not have the right to strike while the
2.2interim approval is in effect.
2.3 Sec. 2. Minnesota Statutes 2024, section 3.855, subdivision 3, is amended to read:
2.4 Subd. 3.Other salary and compensation plan salaries and compensation plans.The
2.5commission shall:
2.6 (1) review and approve or reject a plan for compensation and the terms and conditions
2.7of employment prepared and submitted by the commissioner of management and budget
2.8under section 43A.18, subdivision 2, covering all state employees who are not represented
2.9by an exclusive bargaining representative and whose compensation is not provided for by
2.10chapter 43A or other law;
2.11 (2) review and approve or reject a plan for total compensation and the terms and
2.12conditions of employment for employees in positions identified as managerial under section
2.1343A.18, subdivision 3, whose salaries and benefits are not otherwise provided for in law or
2.14other plans established under chapter 43A;
2.15 (3) review and approve or reject recommendations for salary range of officials of higher
2.16education systems under section 15A.081, subdivision 7c;
2.17 (4) review and approve or reject plans for compensation, terms, and conditions of
2.18employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and
2.19 (5) review and approve or reject the plan for compensation, terms, and conditions of
2.20employment of classified employees in the office of the legislative auditor under section
2.213.971, subdivision 2.
2.22 Sec. 3. Minnesota Statutes 2024, section 3.855, subdivision 6, is amended to read:
2.23 Subd. 6.Information required; collective bargaining agreements, memoranda of
2.24understanding, and interest arbitration awards.Within 14 days after the implementation
2.25of a collective bargaining agreement, memorandum of understanding, compensation plan,
2.26or receipt of an interest arbitration award, the commissioner of management and budget
2.27must submit to the Legislative Coordinating Commission the following:
2.28 (1) a copy of the collective bargaining agreement or compensation plan showing changes
2.29from previous agreements and a copy of the executed agreement;
2.30 (2) a copy of any memorandum of understanding that has a fiscal impact or interest
2.31arbitration award;
2Sec. 3.
25-04724 as introduced03/19/25 REVISOR RSI/HL 3.1 (3) a comparison of biennial compensation costs under the current agreement or plan to
3.2the projected biennial compensation costs under the new agreement, memorandum of
3.3understanding, or interest arbitration award; and
3.4 (4) a comparison of biennial compensation costs under the current agreement or plan to
3.5the projected biennial compensation costs for the following biennium under the new
3.6agreement, memorandum of understanding, or interest arbitration award.
3.7 Sec. 4. Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:
3.8 Subd. 3.Commissioner's plan.The commissioner shall periodically develop and
3.9establish pursuant to this chapter a commissioner's plan. The commissioner shall submit
3.10the plan before the plan becomes effective to the Legislative Coordinating Commission for
3.11approval.
3.12 Sec. 5. Minnesota Statutes 2024, section 43A.18, subdivision 2, is amended to read:
3.13 Subd. 2.Commissioner's plan.Except as provided in section 43A.01, the compensation,
3.14terms and conditions of employment for all classified and unclassified employees, except
3.15unclassified employees in the legislative and judicial branches, who are not covered by a
3.16collective bargaining agreement and not otherwise provided for in chapter 43A or other law
3.17are governed solely by a plan developed by the commissioner. The Legislative Coordinating
3.18Commission shall review and approve, reject, or modify the plan under section 3.855,
3.19subdivision 2. The plan need not be adopted in accordance with the rulemaking provisions
3.20of chapter 14.
3.21 Sec. 6. Minnesota Statutes 2024, section 43A.18, subdivision 3, is amended to read:
3.22 Subd. 3.Managerial plan.(a) The commissioner shall identify individual positions or
3.23groups of positions in the classified and unclassified service in the executive branch as being
3.24managerial. The list must not include positions listed in subdivision 4.
3.25 (b) The commissioner shall periodically prepare a plan for total compensation and terms
3.26and conditions of employment for employees of those positions identified as being managerial
3.27and whose salaries and benefits are not otherwise provided for in law or other plans
3.28established under this chapter. Before becoming effective those portions of the plan
3.29establishing compensation and terms and conditions of employment must be submitted to
3.30reviewed and approved or modified by the Legislative Coordinating Commission and the
3.31legislature under section 3.855, subdivisions 2 and 3.
3Sec. 6.
25-04724 as introduced03/19/25 REVISOR RSI/HL 4.1 (c) Incumbents of managerial positions as identified under this subdivision must be
4.2excluded from any bargaining units under chapter 179A.
4.3 (d) The management compensation plan must provide methods and levels of
4.4compensation for managers that will be generally comparable to those applicable to managers
4.5in other public and private employment. The plan must ensure that compensation within
4.6assigned salary ranges is related to level of performance. The plan must also provide a
4.7procedure for establishment of a salary rate for a newly created position and a new appointee
4.8to an existing position and for progression through assigned salary ranges. The employee
4.9benefits established under the provisions of the managerial plan may be extended to agency
4.10heads whose salaries are established in section 15A.0815 and to constitutional officers,
4.11judges of the Workers' Compensation Court of Appeals, and Tax Court judges.
4.12 Sec. 7. Minnesota Statutes 2024, section 43A.18, subdivision 9, is amended to read:
4.13 Subd. 9.Summary information on website.Before the commissioner submits a
4.14proposed collective bargaining agreement, arbitration award, or compensation plan to the
4.15Legislative Coordinating Commission for review under section 3.855, the commissioner
4.16must post on a state website a summary of the proposed agreement, award, or plan. The
4.17summary must include the amount of and nature of proposed changes in employee
4.18compensation, the estimated cost to the state of proposed changes in employee compensation,
4.19and a description of proposed significant changes in policy. After approval of an agreement,
4.20award, or plan by the Legislative Coordinating Commission, the commissioner must provide
4.21a link from the commissioner's summary to the full text of the agreement, award, or plan.
4.22The summary must remain on the website at least until the full legislature has approved the
4.23agreement, award, or plan. This section also applies to agreements, awards, and plans
4.24covering employees of the Minnesota State Colleges and Universities and to compensation
4.25plans that must be submitted to the Legislative Coordinating Commission by other executive
4.26appointing authorities. The Minnesota State Colleges and Universities and other executive
4.27appointing authorities must submit information to the commissioner, at a time and in a
4.28manner specified by the commissioner, so the commissioner can post information relating
4.29to these appointing authorities on the web as required by this section.
4.30 Sec. 8. REVIVAL AND REENACTMENT .
4.31 Minnesota Statutes 2023 Supplement, section 3.855, subdivision 5, is revived and
4.32reenacted effective retroactively from May 24, 2024. Any time frames within or dependent
4Sec. 8.
25-04724 as introduced03/19/25 REVISOR RSI/HL 5.1on the subdivision are based on the original effective date in Laws 2019, First Special
5.2Session chapter 10, article 2, section 1.
5Sec. 8.
25-04724 as introduced03/19/25 REVISOR RSI/HL