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HF 3541

as introduced - 89th Legislature (2015 - 2016) Posted on 03/23/2016 11:19am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education; providing for a performance-based pay system for teachers;
appropriating money; amending Minnesota Statutes 2014, section 126C.10, by
adding subdivisions; Minnesota Statutes 2015 Supplement, sections 122A.40,
subdivision 8; 122A.41, subdivision 5; 124E.12, by adding a subdivision;
124E.20, subdivision 1; 126C.10, subdivision 1; 126C.13, subdivision 4;
proposing coding for new law in Minnesota Statutes, chapter 136D; repealing
Minnesota Statutes 2014, sections 122A.413, subdivision 3; 122A.414,
subdivision 4; 122A.4144; 122A.4155; 122A.416; Minnesota Statutes 2015
Supplement, sections 122A.413, subdivisions 1, 2; 122A.414, subdivisions 1,
1a, 2, 2a, 2b, 3; 122A.415, subdivisions 1, 3, 4, 5, 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2015 Supplement, section 122A.40, subdivision 8,
is amended to read:


Subd. 8.

Development, evaluation, deleted text begin anddeleted text end peer coaching deleted text begin for continuing contract
teachers
deleted text end new text begin , and performance-linked paynew text end .

(a) To improve student learning and successnew text begin and
to support teachers' roles in improving students' educational achievement
new text end , a school board
and an exclusive representative of the teachers in the district, consistent with paragraph
(b), may develop a teacher evaluation and peer review process for probationary and
continuing contract teachers through joint agreementnew text begin and, consistent with paragraph (e),
may develop a performance pay system
new text end . If a school board and the exclusive representative
of the teachers do not agree to an annual teacher evaluation and peer review process, then
the school board and the exclusive representative of the teachers must implement the state
teacher evaluation plan under paragraph (c). The process must include having trained
observers serve as peer coaches or having teachers participate in professional learning
communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
teachers:

(1) must, for probationary teachers, provide for all evaluations required under
subdivision 5;

(2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, and at least
one summative evaluation performed by a qualified and trained evaluator such as a school
administrator. For the years when a tenured teacher is not evaluated by a qualified and
trained evaluator, the teacher must be evaluated by a peer review;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and
teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning
communities;

(7) may include mentoring and induction programs;

(8) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;

(9) must use data from valid and reliable assessments aligned to state and local
academic standards and must use state and local measures of student growth and literacy
that may include value-added models or student learning goals to determine 35 percent of
teacher evaluation results;

(10) must use longitudinal data on student engagement and connection, and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible, including academic literacy, oral academic language, and
achievement of content areas of English learners;

(11) must require qualified and trained evaluators such as school administrators to
perform summative evaluations and ensure school districts and charter schools provide for
effective evaluator training specific to teacher development and evaluation;

(12) must give teachers not meeting professional teaching standards under clauses
(3) through (11) support to improve through a teacher improvement process that includes
established goals and timelines; and

(13) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (12) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data
under section 13.43. The observation and interview notes of peer coaches may only be
disclosed to other school officials with the consent of the teacher being coached.

(c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section and
section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
evaluation and peer review process. The teacher evaluation process created under this
subdivision does not create additional due process rights for probationary teachers under
subdivision 5.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

(1) for students in kindergarten through grade 4, a school administrator must not
place or approve the placement of a student in the classroom of a teacher who is in the
improvement process referenced in paragraph (b), clause (12), or has not had a summative
evaluation if, in the prior year, that student was in the classroom of a teacher who received
discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school
teaches that grade; and

(2) for students in grades 5 through 12, a school administrator must not place
or approve the placement of a student in the classroom of a teacher who is in the
improvement process referenced in paragraph (b), clause (12), or has not had a summative
evaluation if, in the prior year, that student was in the classroom of a teacher who received
discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school
teaches that subject area and grade.

All data created and used under this paragraph retains its classification under chapter 13.

new text begin (e) To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for school districts to recruit and retain
qualified teachers and encourage qualified teachers to undertake challenging assignments,
the performance pay system must, consistent with paragraph (b):
new text end

new text begin (1) identify assessment and evaluation tools to measure student performance and
progress;
new text end

new text begin (2) establish performance goals and benchmarks for improvement;
new text end

new text begin (3) describe how teachers can achieve career advancement and additional
compensation;
new text end

new text begin (4) describe how the school district will provide teachers with career advancement
options that allow teachers to retain primary roles in student instruction and facilitate
site-focused professional development that helps other teachers improve their skills;
new text end

new text begin (5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base all compensation increases while the performance pay system
is in place on teacher performance; and
new text end

new text begin (6) be negotiated and adopted according to the Public Employment Labor Relations
Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
district may enter into a contract for a term of two or four years.
new text end

new text begin (f) Notwithstanding section 179A.20 or other law to the contrary, a school board and
the exclusive representative of the teachers may agree to reopen a collective bargaining
agreement for the purpose of entering into a performance pay system agreement under
paragraph (e). Negotiations for a contract reopened under this section must be limited to
issues related to the performance pay system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2016-2017 school year and later.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 122A.41, subdivision 5, is
amended to read:


Subd. 5.

Development, evaluation, deleted text begin anddeleted text end peer coaching deleted text begin for continuing contract
teachers
deleted text end new text begin , and performance-linked paynew text end .

(a) To improve student learning and successnew text begin and
to support teachers' roles in improving students' educational achievement
new text end , a school board
and an exclusive representative of the teachers in the district, consistent with paragraph
(b), may develop an annual teacher evaluation and peer review process for probationary
and nonprobationary teachers through joint agreementnew text begin and consistent with paragraph (e),
may develop a performance pay system
new text end . If a school board and the exclusive representative
of the teachers in the district do not agree to an annual teacher evaluation and peer review
process, then the school board and the exclusive representative of the teachers must
implement the state teacher evaluation plan developed under paragraph (c). The process
must include having trained observers serve as peer coaches or having teachers participate
in professional learning communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
teachers:

(1) must, for probationary teachers, provide for all evaluations required under
subdivision 2;

(2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, and at least
one summative evaluation performed by a qualified and trained evaluator such as a school
administrator;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and
teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning
communities;

(7) may include mentoring and induction programs;

(8) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;

(9) must use data from valid and reliable assessments aligned to state and local
academic standards and must use state and local measures of student growth and literacy
that may include value-added models or student learning goals to determine 35 percent of
teacher evaluation results;

(10) must use longitudinal data on student engagement and connection and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible, including academic literacy, oral academic language, and
achievement of English learners;

(11) must require qualified and trained evaluators such as school administrators to
perform summative evaluations and ensure school districts and charter schools provide for
effective evaluator training specific to teacher development and evaluation;

(12) must give teachers not meeting professional teaching standards under clauses
(3) through (11) support to improve through a teacher improvement process that includes
established goals and timelines; and

(13) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (12) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data
under section 13.43. The observation and interview notes of peer coaches may only be
disclosed to other school officials with the consent of the teacher being coached.

(c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section and
section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
evaluation and peer review process. The teacher evaluation process created under this
subdivision does not create additional due process rights for probationary teachers under
subdivision 2.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

(1) for students in kindergarten through grade 4, a school administrator must not
place or approve the placement of a student in the classroom of a teacher who is in the
improvement process referenced in paragraph (b), clause (12), or has not had a summative
evaluation if, in the prior year, that student was in the classroom of a teacher who received
discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school
teaches that grade; and

(2) for students in grades 5 through 12, a school administrator must not place
or approve the placement of a student in the classroom of a teacher who is in the
improvement process referenced in paragraph (b), clause (12), or has not had a summative
evaluation if, in the prior year, that student was in the classroom of a teacher who received
discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school
teaches that subject area and grade.

All data created and used under this paragraph retains its classification under chapter 13.

new text begin (e) To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for school districts to recruit and retain
qualified teachers and encourage qualified teachers to undertake challenging assignments,
the performance pay system must, consistent with paragraph (b):
new text end

new text begin (1) identify assessment and evaluation tools to measure student performance and
progress;
new text end

new text begin (2) establish performance goals and benchmarks for improvement;
new text end

new text begin (3) describe how teachers can achieve career advancement and additional
compensation;
new text end

new text begin (4) describe how the school district will provide teachers with career advancement
options that allow teachers to retain primary roles in student instruction and facilitate
site-focused professional development that helps other teachers improve their skills;
new text end

new text begin (5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base all compensation increases while the performance pay system
is in place on teacher performance; and
new text end

new text begin (6) be negotiated and adopted according to the Public Employment Labor Relations
Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
district may enter into a contract for a term of two or four years.
new text end

new text begin (f) Notwithstanding section 179A.20 or other law to the contrary, a school board and
the exclusive representative of the teachers may agree to reopen a collective bargaining
agreement for the purpose of entering into a performance pay system agreement under
paragraph (e). Negotiations for a contract reopened under this section must be limited to
issues related to the performance pay system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2016-2017 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 124E.12, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Performance pay for charter schools. new text end

new text begin To provide incentives to
encourage teachers to improve their knowledge and instructional skills to improve student
learning and for charter schools to recruit and retain qualified teachers and encourage
qualified teachers to undertake challenging assignments, a charter school may develop a
performance pay system. If developed, the performance pay system must:
new text end

new text begin (1) include the elements in section 122A.40, subdivision 8, paragraph (e), clauses
(1) to (5);
new text end

new text begin (2) if governed by a collective bargaining agreement, comply with section 122A.40,
subdivision 8, paragraph (e), clause (6);
new text end

new text begin (3) be adopted by the charter school board of directors adopting the agreement; and
new text end

new text begin (4) be approved by a formal vote of the teachers employed at the charter school
indicating that at least 70 percent of all teachers agree to implement the performance pay
system unless the charter school submits a performance pay system agreement under this
subdivision before the first year of operation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2016-2017 school year and later.
new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 124E.20, subdivision 1, is
amended to read:


Subdivision 1.

Revenue calculation.

(a) General education revenue must be paid
to a charter school as though it were a district. The general education revenue for each
adjusted pupil unit is the state average general education revenue per pupil unit, plus the
referendum equalization aid allowance in the pupil's district of residence, minus an amount
equal to the product of the formula allowance according to section 126C.10, subdivision
2
, times .0466, calculated without declining enrollment revenue, local optional revenue,
basic skills revenue, extended time revenue, pension adjustment revenue,new text begin evaluation
and performance revenue,
new text end transition revenue, and transportation sparsity revenue, plus
declining enrollment revenue, basic skills revenue, pension adjustment revenue,new text begin evaluation
and performance aid according to section 126C.10, subdivision 39,
new text end and transition revenue
as though the school were a school district.

(b) For a charter school operating an extended day, extended week, or summer
program, the general education revenue in paragraph (a) is increased by an amount equal
to 25 percent of the statewide average extended time revenue per adjusted pupil unit.

(c) Notwithstanding paragraph (a), the general education revenue for an eligible
special education charter school as defined in section 124E.21, subdivision 2, equals the
sum of the amount determined under paragraph (a) and the school's unreimbursed cost as
defined in section 124E.21, subdivision 2, for educating students not eligible for special
education services.

Sec. 5.

Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 1, is
amended to read:


Subdivision 1.

General education revenue.

The general education revenue for
each district equals the sum of the district's basic revenue, extended time revenue, gifted
and talented revenue, declining enrollment revenue, local optional revenue, small schools
revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
transportation sparsity revenue, total operating capital revenue, equity revenue, pension
adjustment revenue,new text begin evaluation and performance revenue,new text end and transition revenue.

Sec. 6.

Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 38. new text end

new text begin Evaluation and performance revenue. new text end

new text begin (a) For fiscal year 2017 and later,
evaluation and performance revenue for a school district or charter school in which the
school board, intermediate school board, or charter school board of directors (1) notified
the commissioner by October 1 of the previous fiscal year of the district's or charter
school's intention to implement a performance plan under section 122A.40, subdivision 8,
paragraph (e); 122A.41, subdivision 5, paragraph (e); 136D.02; or 124E.12, subdivision
7, and (2) certifies to the commissioner by October 1 of that fiscal year that the district,
intermediate district, or charter school has implemented the performance plan, equals $260
times the number of pupils enrolled at the district or site on October 1 of the previous
fiscal year. Of this amount, ... percent must be reserved for compensation increases
consistent with the adopted performance plan.
new text end

new text begin (b) For fiscal year 2017 and later, evaluation and performance revenue for a school
district or charter school not receiving revenue under paragraph (a) is equal to $....... times
the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.
new text end

new text begin (c) Evaluation and performance revenue for an intermediate school district equals
the basic evaluation and performance aid for an intermediate school district calculated
under subdivision 39.
new text end

new text begin (d) Notwithstanding paragraphs (a), (b), and (c), the evaluation and performance
revenue for a school district, intermediate school district, or charter school receiving
revenue under section 122A.415 for the current school year equals $0.
new text end

new text begin (e) For a newly combined or consolidated district, the revenue shall be computed
using the sum of pupils enrolled on October 1 of the previous year in the districts entering
into the combination or consolidation. The commissioner may adjust the revenue computed
for a site using prior year data to reflect changes attributable to school closings, school
openings, or grade level reconfigurations between the prior year and the current year.
new text end

new text begin (f) For a charter school in the first year of operation, the revenue shall be computed
using the number of pupils enrolled on October 1 of the current year.
new text end

Sec. 7.

Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 39. new text end

new text begin Basic evaluation and performance aid. new text end

new text begin For fiscal year 2017 and
later, the basic evaluation and performance aid equals 65 percent of the evaluation and
performance revenue under subdivision 38. The basic evaluation and performance aid
for an intermediate school district equals $260 times the number of pupils enrolled in the
school on October 1 of the previous year times the ratio of the sum of the evaluation and
performance aid and evaluation and performance levy for all participating school districts
to the maximum evaluation and performance revenue for those districts under subdivision
38. The basic evaluation and performance aid for a charter school equals the evaluation
and performance revenue under subdivision 38.
new text end

Sec. 8.

Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 40. new text end

new text begin Evaluation and performance levy. new text end

new text begin For fiscal year 2017 and later,
the evaluation and performance levy for a school district equals the product of (1) the
difference between the district's evaluation and performance revenue and the district's
basic evaluation and performance aid, times (2) the lesser of one or the ratio of the
district's adjusted net tax capacity per adjusted pupil unit to $6,100.
new text end

Sec. 9.

Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 41. new text end

new text begin Evaluation and performance equalization aid. new text end

new text begin (a) For fiscal year 2017
and later, a district's evaluation and performance equalization aid equals the district's
evaluation and performance revenue minus the district's basic evaluation and performance
aid minus the district's evaluation and performance levy. If a district does not levy the
entire amount permitted, the evaluation and performance equalization aid must be reduced
in proportion to the actual amount levied.
new text end

new text begin (b) A district's evaluation and performance aid equals the sum of the district's basic
evaluation and performance aid and the district's evaluation and performance equalization
aid.
new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 126C.13, subdivision 4, is
amended to read:


Subd. 4.

General education aid.

For fiscal year 2015 and later, a district's general
education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue,
local optional revenue,new text begin evaluation and performance revenue,new text end and transition revenue, minus
the student achievement levy, multiplied times the ratio of the actual amount of student
achievement levy levied to the permitted student achievement levy; plus

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30; plus

(4) transition aid under section 126C.10, subdivision 33; plus

(5) shared time aid under section 126C.10, subdivision 7; plus

(6) referendum aid under section 126C.17, subdivisions 7 and 7a; plus

(7) online learning aid under section 124D.096; plus

(8) local optional aid according to section 126C.10, subdivision 2d, paragraph (d)deleted text begin .deleted text end new text begin ;
plus
new text end

new text begin (9) evaluation and performance aid according to section 126C.10, subdivision 41,
paragraph (b).
new text end

Sec. 11.

new text begin [136D.02] PERFORMANCE PAY SYSTEM.
new text end

new text begin To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for intermediate school districts
to recruit and retain qualified teachers and encourage qualified teachers to undertake
challenging assignments, an intermediate school district may develop a performance pay
system. If developed, the performance pay system must include the elements in section
122A.40, subdivision 8, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2016-2017 school year and later.
new text end

Sec. 12. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the commissioner of education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Evaluation and performance aid. new text end

new text begin For basic evaluation and performance
aid under Minnesota Statutes, section 126C.10, subdivision 39, and evaluation and
performance equalization aid under Minnesota Statutes, section 126C.10, subdivision 41:
new text end

new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2017
new text end
new text begin $
new text end
new text begin .......
new text end
new text begin .....
new text end
new text begin 2018
new text end

new text begin The 2017 appropriation includes $....... for 2017.
new text end

new text begin The 2018 appropriation includes $....... for 2017 and $....... for 2018.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, sections 122A.413, subdivision 3; 122A.414,
subdivision 4; 122A.4144; 122A.4155; and 122A.416,
new text end new text begin are repealed, effective for the
2018-2019 school year and later.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2015 Supplement, sections 122A.413, subdivisions 1 and 2;
122A.414, subdivisions 1, 1a, 2, 2a, 2b, and 3; and 122A.415, subdivisions 1, 3, 4, 5, and
6,
new text end new text begin are repealed, effective for the 2018-2019 school year and later.
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