1.1.................... moves to amend H.F. No. 927, the delete everything amendment
1.2(A11-0177), as follows:
1.3Page 168, after line 6, insert

1.4    "Sec. 71. Minnesota Statutes 2010, section 256B.69, is amended by adding a
1.5subdivision to read:
1.6    Subd. 33. Compensation freeze. (a) From the effective date of this subdivision
1.7until implementation of compensation required under paragraph (b), a managed care or
1.8county-based purchasing plan must not increase the compensation of any employee.
1.9This subdivision prohibits any increase including, but not limited to, across-the-board
1.10increases; cost-of-living adjustments; increases based on longevity; increases as a result of
1.11step and lane changes; increases in the form of lump-sum payments; increases in employer
1.12contributions to deferred compensation plans; and any increase in employer contributions
1.13toward the cost of medical, dental, life, or other insurance. This subdivision does not
1.14prohibit an increase in the rate of salary and wages for an employee who is promoted or
1.15transferred to a position with greater job responsibilities.
1.16(b) The commissioner of management and budget must contract for a compensation
1.17study for managed care and county-based purchasing plan position descriptions. The
1.18study must compare the total compensation, including salary and benefits, of each position
1.19description with positions in the public sector in which the skill, effort, responsibilities,
1.20and working conditions are similar. The commissioner must report the results of the
1.21study to the legislature by March 1, 2012. By July 1, 2012, each plan must implement
1.22compensation for each position for its employees that, as nearly as practicable, is
1.23comparable to the compensation of public sector positions with similar skill, effort,
1.24responsibilities, and working conditions, as determined by the commissioner under this
2.1(c) This subdivision does not prohibit a change in compensation required by a
2.2contract or collective bargaining agreement in effect before the effective date of this
2.3subdivision. However, a plan may not:
2.4(1) enter into a new contract or collective bargaining agreement that changes
2.5compensation in a manner that conflicts with this subdivision; or
2.6(2) extend an expired contract or collective bargaining agreement or any other
2.7arrangement that conflicts with this subdivision.
2.8EFFECTIVE DATE.This section is effective the day following final enactment.

2.9    Sec. 72. Minnesota Statutes 2010, section 256B.69, is amended by adding a
2.10subdivision to read:
2.11    Subd. 34. Required reduction. (a) The number of full-time equivalent employees
2.12employed by a managed care or county-based purchasing plan to deliver services to
2.13medical assistance and MinnesotaCare enrollees, and the costs directly associated with
2.14employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
2.15thereafter, compared to the number of full-time equivalent positions and the costs directly
2.16associated with those positions on July 1, 2011.
2.17(b) A plan may use any or all of the following to achieve this requirement: attrition,
2.18a hard hiring freeze, early retirement incentives, restructuring of benefit or pension
2.19programs, furloughs, and layoffs.
2.20(c) For purposes of this section, "costs directly associated" with employing people
2.21means the cost of salaries and benefits, including the costs of employer contributions
2.22to pension plans."
2.23Renumber the sections in sequence and correct the internal references
2.24Amend the title accordingly