1.1                          A bill for an act
  1.2             relating to education; establishing school site 
  1.3             councils with authority to make managerial decisions; 
  1.4             reserving revenue for school site councils; directing 
  1.5             compensatory revenue to school sites; creating a 
  1.6             funding mechanism to reward districts based on 
  1.7             improvement in student performance; appropriating 
  1.8             money; amending Minnesota Statutes 1994, section 
  1.9             124A.28, subdivision 1a, and by adding a subdivision; 
  1.10            Minnesota Statutes 1995 Supplement, section 126.70, 
  1.11            subdivision 2a; proposing coding for new law in 
  1.12            Minnesota Statutes, chapters 123 and 124A; repealing 
  1.13            Minnesota Statutes 1994, section 123.951. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  [123.952] [SCHOOL SITE COUNCILS.] 
  1.16     Subdivision 1.  [PURPOSE.] The purpose of this section is 
  1.17  to delegate and redistribute to a school site, at the discretion 
  1.18  of the school site, the formal authority for making decisions 
  1.19  affecting the site budget, site personnel or site programs.  
  1.20  Within the parameters of existing statutes, rules, 
  1.21  accountability requirements and contractual agreements, the 
  1.22  school site shall have substantial discretion to manage the 
  1.23  site.  Site-based management is intended to alter the formal 
  1.24  decision making arrangements in schools, alter the patterns of 
  1.25  influence within a school site, de-bureaucratize schools and 
  1.26  empower education professionals and school patrons. 
  1.27     Subd. 2.  [ESTABLISHING A SCHOOL SITE COUNCIL.] (a) Upon 
  1.28  receiving a written request from a proposed school site council, 
  1.29  the school board of a school district shall appoint the site 
  2.1   principal or other person having general control and supervision 
  2.2   of the site, teachers employed at the site, parents of students 
  2.3   enrolled at the site and nonparent community members residing in 
  2.4   the site attendance area, and may appoint students enrolled at 
  2.5   the site, to serve as members of an interim site council during 
  2.6   the period of transition to site-based management. 
  2.7      (b) When the interim site council determines that the site 
  2.8   is prepared to complete the transition to site-based management 
  2.9   by assuming responsibility for decisions affecting the site 
  2.10  budget, site personnel or site programs or accepting authority 
  2.11  over reserved revenue, it shall formally adopt operating 
  2.12  policies and guidelines consistent with the provisions of this 
  2.13  section.  After considering the need for a broad spectrum of 
  2.14  representation on the council and broad public participation, it 
  2.15  shall determine the composition of the site council and the 
  2.16  mechanism for selecting council members.  The site council must 
  2.17  include the site principal or other person having general 
  2.18  control and supervision of the site, teachers employed at the 
  2.19  site, parents of students enrolled at the site and nonparent 
  2.20  community members residing in the site attendance area, and may 
  2.21  include students enrolled at the site.  Site council members are 
  2.22  prohibited from selecting their successors. 
  2.23     Subd. 3.  [TERMS AND CONDITIONS OF COUNCIL MEMBERSHIP.] The 
  2.24  terms of council members shall be three years and shall be 
  2.25  staggered.  Each year, the terms of one-third of the council 
  2.26  members, or approximately one-third of the council members if 
  2.27  the number of council members cannot be divided by three, shall 
  2.28  end on the first Monday in January.  The site council may remove 
  2.29  a member for cause, after notice and hearing, or after the 
  2.30  member misses three consecutive meetings.  In the case of a 
  2.31  vacancy on the council, the majority of council members at a 
  2.32  public meeting shall appoint a person to fill a vacancy for the 
  2.33  remainder of the term. 
  2.34     Subd. 4.  [MANAGERIAL DECISION MAKING.] The site council 
  2.35  must not assume the administrative functions of the site that 
  2.36  the site principal or other person having general control and 
  3.1   supervision of the site ordinarily performs.  The responsibility 
  3.2   of the site council is managerial decision making. 
  3.3      Subd. 5.  [MEETINGS.] Although not subject to section 
  3.4   471.705, the site council must hold periodic, regularly 
  3.5   scheduled public meetings and must provide reasonable notice of 
  3.6   the meetings and written materials where appropriate.  The site 
  3.7   council shall meet at the call of the council chair.  Site 
  3.8   council action on matters related to employment compensation, 
  3.9   the site plan, council member removal, council vacancies and 
  3.10  curriculum development must be taken at a public meeting.  To 
  3.11  take action at a public meeting, a majority of council members 
  3.12  must be present.  The site council should encourage the public 
  3.13  to participate in considering site-related matters. 
  3.14     Subd. 6.  [AUTHORITY OVER RESERVED REVENUE.] A site council 
  3.15  may elect not to exercise authority over the reserved revenue 
  3.16  allocated under section 124A.223.  If a council elects not to 
  3.17  exercise such authority, it may give the district written 
  3.18  authorization to use the revenue for the benefit of the site. 
  3.19     Subd. 7.  [SITE COUNCIL GOALS.] A site council is 
  3.20  encouraged to work to increase the parents' participation in the 
  3.21  school, improve children's learning and enhance community 
  3.22  support for learning.  To achieve these goals, a site council 
  3.23  may consider changes in the organizational structure of the 
  3.24  site, the allocation of power and resources at the site, new 
  3.25  systems of accountability at the site, or the realignment of the 
  3.26  respective roles and authority of the school board, the 
  3.27  teachers' organization, the site administration and community 
  3.28  stakeholders. 
  3.29     Subd. 8.  [SITE IMPEMENTATION.] (a) In order to make 
  3.30  fundamental and lasting educational improvement possible, a site 
  3.31  council that elects to participate in site-based management by 
  3.32  exercising authority over the reserved revenue under section 
  3.33  124A.223 must comply with the provisions of section 124A.223 and 
  3.34  this section for a minimum of three years.  A participating site 
  3.35  may develop criteria to determine its success in site-based 
  3.36  management. 
  4.1      (b) At the request of a participating site council, the 
  4.2   department and the school district are expected to use sources 
  4.3   of staff development revenue, including revenue for staff 
  4.4   development plans under section 126.70, and available revenue 
  4.5   through Shared Decisions Minnesota, among other resources, to 
  4.6   make available additional and adequate time, training, and 
  4.7   technical assistance to the participating site.  Staff 
  4.8   development revenue may be used to address constraints on 
  4.9   teachers' participation, including lack of consensus and lack of 
  4.10  knowledge to inform decision making. 
  4.11     (c) A participating site council may petition the state 
  4.12  board of education under section 121.11, subdivision 7b, or the 
  4.13  board of governmental innovation and cooperation under section 
  4.14  465.797 to seek a waiver from an external requirement that is an 
  4.15  obstacle to successful site-based management.  A site council 
  4.16  may also seek from the school board of the school district and 
  4.17  the collective bargaining representative a waiver from a school 
  4.18  board policy or a provision of the district collective 
  4.19  bargaining agreement that is an obstacle to successful 
  4.20  site-based management. 
  4.21     Sec. 2.  [124A.223] [REVENUE RESERVED FOR SCHOOL SITES.] 
  4.22     Subdivision 1.  [RESERVED REVENUE.] A school district must 
  4.23  reserve revenue for each school site that establishes a site 
  4.24  council under section 123.952.  The district must reserve for 
  4.25  each school site an amount of revenue that is equal to five 
  4.26  percent of the basic formula allowance times the actual pupil 
  4.27  units at that site for that year.  Only the site council can 
  4.28  spend revenue reserved under this section. 
  4.29     Subd. 2.  [REVENUE USE.] (a) A site council may use its 
  4.30  revenue for any of the following purposes: 
  4.31     (1) hiring additional staff; 
  4.32     (2) staff development; 
  4.33     (3) salary enhancements for employees located at the site; 
  4.34     (4) contracting for goods and services; 
  4.35     (5) supplies; 
  4.36     (6) computer hardware and software; and 
  5.1      (7) other equipment. 
  5.2      (b) A salary enhancement granted by a site council under 
  5.3   this section is not an unfair labor practice under chapter 179A. 
  5.4      Subd. 3.  [HIRING DECISIONS.] Notwithstanding any other law 
  5.5   to the contrary, a site council may use its revenue to contract 
  5.6   for additional employees under a process the site council 
  5.7   establishes.  The term of the contract must not exceed one year 
  5.8   and all contracts must expire on June 30th.  Each year, the site 
  5.9   council, at its discretion, may choose to renew its contract 
  5.10  with an employee.  The employees the site council contracts with 
  5.11  must be paid a salary according to the district's salary 
  5.12  structure.  Employees the site council contracts with are 
  5.13  eligible for retirement benefits and health care benefits 
  5.14  consistent with the district's contract with other employees.  
  5.15  Employees hired under this section must not be included in a 
  5.16  bargaining unit under chapter 179A. 
  5.17     Subd. 4.  [EMPLOYER.] Employees the site council contracts 
  5.18  with are school district employees. 
  5.19     Subd. 5.  [CONTRACTS.] A site council may use its revenue 
  5.20  to purchase goods and services and is not subject to the 
  5.21  provisions of sections 123.37 or 471.345. 
  5.22     Subd. 6.  [PROPERTY.] Equipment and any other property a 
  5.23  site council purchases is property of the district but remains 
  5.24  under the control of the site council unless the site council is 
  5.25  dissolved. 
  5.26     Sec. 3.  Minnesota Statutes 1994, section 124A.28, 
  5.27  subdivision 1a, is amended to read: 
  5.28     Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
  5.29  the concentration allocate all compensatory revenue to each 
  5.30  school site in direct proportion to the number of children from 
  5.31  low-income families in at each school building in the district 
  5.32  when allocating compensatory revenue site. 
  5.33     Sec. 4.  Minnesota Statutes 1994, section 124A.28, is 
  5.34  amended by adding a subdivision to read: 
  5.35     Subd. 1b.  [SITE DECISION.] If a school site is operated by 
  5.36  a site council that has elected to exercise control over 
  6.1   revenue, then the site council may make all decisions regarding 
  6.2   the expenditure of compensatory revenue allocated to the site 
  6.3   consistent with the uses of the revenue prescribed in 
  6.4   subdivision 1. 
  6.5      Sec. 5.  [124A.40] [MEASURABLE PERFORMANCE AID.] 
  6.6      Subdivision 1.  [PURPOSE.] The purpose of the measurable 
  6.7   performance funding formula is to reward school sites and school 
  6.8   districts that have established and are achieving measurable 
  6.9   performance objectives. 
  6.10     Subd. 2.  [SITE FUNDING.] Beginning in fiscal year 1998, 
  6.11  each school site established under section 123.952 is eligible 
  6.12  for performance funding if the site has set and met a 
  6.13  performance goal.  Performance goals include, but are not 
  6.14  limited to:  increasing test scores; increasing the high school 
  6.15  graduation rate; reducing truancy; or increasing parental 
  6.16  involvement.  Performance funding for each site equals $5 times 
  6.17  the number of pupils in average daily membership at that site. 
  6.18     Subd. 3.  [DISTRICT FUNDING.] (a) For fiscal year 1997 
  6.19  only, a school district is eligible for measurable performance 
  6.20  aid if the school board has adopted a plan to develop or 
  6.21  implement an annual assessment in reading and math for students 
  6.22  in grade 11. 
  6.23     (b) For fiscal year 1998 and later, a school district is 
  6.24  eligible for measurable performance aid if:  (i) the district 
  6.25  has implemented a process to annually assess 11th grade students 
  6.26  in reading and math; (ii) the district has established a 
  6.27  baseline measure of student performance for fiscal year 1997 or 
  6.28  a later year; and (iii) if the aggregate assessment data for the 
  6.29  district in the current year shows improvement in the level of 
  6.30  student performance over the base year as measured by the change 
  6.31  in median test score. 
  6.32     (c) Prior to adopting the graduation rule under section 
  6.33  121.11, subdivision 7c, a school district may use any form of 
  6.34  assessment for reading and math.  After adopting the state 
  6.35  graduation rule, the school district's form of assessment for 
  6.36  reading and math must be consistent with the requirements of the 
  7.1   graduation rule. 
  7.2      (d) Each year, measurable performance aid for a school 
  7.3   district equals $5 times the district's number of pupils in 
  7.4   average daily membership. 
  7.5      Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  7.6   126.70, subdivision 2a, is amended to read: 
  7.7      Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
  7.8   development committee shall adopt a staff development plan for 
  7.9   improving student achievement of education outcomes.  The plan 
  7.10  must be consistent with education outcomes that the school board 
  7.11  determines.  The plan shall include ongoing staff development 
  7.12  activities that contribute toward continuous improvement in 
  7.13  achievement of the following goals: 
  7.14     (1) improve student achievement of state and local 
  7.15  education standards in all areas of the curriculum; 
  7.16     (2) effectively meet the needs of a diverse student 
  7.17  population, including at-risk children, children with 
  7.18  disabilities, and gifted children, within the regular classroom 
  7.19  and other settings; 
  7.20     (3) provide an inclusive curriculum for a racially, 
  7.21  ethnically, and culturally diverse student population that is 
  7.22  consistent with the state education diversity rule and the 
  7.23  district's education diversity plan; 
  7.24     (4) improve staff ability to collaborate and consult with 
  7.25  one another and to resolve conflicts; 
  7.26     (5) effectively teach and model violence prevention policy 
  7.27  and curriculum that address issues of harassment and teach 
  7.28  nonviolent alternatives for conflict resolution; and 
  7.29     (6) provide teachers and other members of site-based 
  7.30  management teams with appropriate management and financial 
  7.31  management skills; and 
  7.32     (7) train teachers, parents and community members in site 
  7.33  decision making techniques and policies. 
  7.34     Sec. 7.  [APPLICABILITY.] 
  7.35     Minnesota Statutes, section 123.952, governs school site 
  7.36  decision making agreements entered into after June 30, 1996. 
  8.1      Sec. 8.  [APPROPRIATION.] 
  8.2      $....... is appropriated in fiscal year 1997 from the 
  8.3   general fund to the commissioner of children, families, and 
  8.4   learning for measurable performance aid under Minnesota 
  8.5   Statutes, section 124A.40. 
  8.6      Sec. 9.  [REPEALER.] 
  8.7      Minnesota Statutes 1994, section 123.951, is repealed. 
  8.8      Sec. 10.  [EFFECTIVE DATE.] 
  8.9      (a) Sections 1, 6, and 7 are effective the day following 
  8.10  final enactment.  
  8.11     (b) Sections 2, 3, 4, and 5 are effective July 1, 1997 for 
  8.12  revenue for 1997-1998 and later school years.  
  8.13     (c) Section 8 is effective July 1, 1996.  
  8.14     (d) Section 9 is effective June 30, 1996.