1.1                          A bill for an act
  1.2             relating to education; allowing a retired principal or 
  1.3             superintendent to serve as an interim administrator 
  1.4             for 120 school days without a financial penalty; 
  1.5             amending Minnesota Statutes 1996, section 123.34, 
  1.6             subdivision 10; 354.44, subdivision 5a, and by adding 
  1.7             a subdivision; and 354A.31, subdivision 3a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 123.34, 
  1.10  subdivision 10, is amended to read: 
  1.11     Subd. 10.  [PRINCIPALS.] Each public school building, as 
  1.12  defined by section 120.05, subdivision 2, clauses (1), (2), and 
  1.13  (3), in an independent school district may be under the 
  1.14  supervision of a principal who is assigned to that 
  1.15  responsibility by the board of education in that school district 
  1.16  upon the recommendation of the superintendent of schools of that 
  1.17  school district.  If pupils in kindergarten through grade 12 
  1.18  attend school in one building, one principal may supervise the 
  1.19  building. 
  1.20     Each principal assigned the responsibility for the 
  1.21  supervision of a school building shall hold a valid license in 
  1.22  the assigned position of supervision and administration as 
  1.23  established by the rules of the state board of education. 
  1.24  Notwithstanding any law to the contrary, a school district may 
  1.25  contract with a retired person to serve for 120 school days as 
  1.26  an interim principal if the retired person: 
  2.1      (1) successfully served as an elementary or secondary 
  2.2   school principal before retiring; and 
  2.3      (2) held a valid elementary or secondary school principal's 
  2.4   license during the person's term of service as a principal. 
  2.5      The retired person's contract must be appropriate to the 
  2.6   type of license the person held while employed as a principal 
  2.7   before retiring.  A school district may not contract with a 
  2.8   retired person to serve as an interim principal for more than 
  2.9   120 school days in any one school year.  The school district 
  2.10  shall count only the school days during which the interim 
  2.11  principal actually worked to calculate 120 school days under 
  2.12  this paragraph. 
  2.13     The principal shall provide administrative, supervisory, 
  2.14  and instructional leadership services, under the supervision of 
  2.15  the superintendent of schools of the school district and in 
  2.16  accordance with the policies, rules, and regulations of the 
  2.17  board of education, for the planning, management, operation, and 
  2.18  evaluation of the education program of the building or buildings 
  2.19  to which the principal is assigned. 
  2.20     Sec. 2.  Minnesota Statutes 1996, section 354.44, 
  2.21  subdivision 5a, is amended to read: 
  2.22     Subd. 5a.  [EXEMPTION FOR INTERIM SUPERINTENDENT.] A person 
  2.23  who performs services as an interim superintendent because of 
  2.24  the death, disability, termination, or resignation of the 
  2.25  previous superintendent is exempt from the earnings limitations 
  2.26  and reductions in annuity payments in subdivision 5 for up to 90 
  2.27  120 working days of service as an interim superintendent.  The 
  2.28  school district shall count only the school days during which 
  2.29  the interim superintendent actually worked to calculate 120 
  2.30  school days under this paragraph.  During this period of up to 
  2.31  90 120 working days, the school board may pay the interim 
  2.32  superintendent at any rate, up to the rate paid to the previous 
  2.33  superintendent.  This exemption applies only if the school board 
  2.34  hiring the interim superintendent submits an application for the 
  2.35  exemption on a form prescribed by the executive director, and 
  2.36  the executive director approves the application before the 
  3.1   services as interim superintendent begin.  The application must 
  3.2   certify that the school board has unanimously approved the 
  3.3   exemption from the earnings limitations and reductions.  The 
  3.4   executive director may prescribe a form for the application.  A 
  3.5   school board shall not apply for more than one exemption in a 
  3.6   fiscal year.  No more than three five exemptions may be approved 
  3.7   for any person.  Only one exemption may be approved for any 
  3.8   person in a fiscal year.  The exemption under this subdivision 
  3.9   does not apply to a person who retires from a school district 
  3.10  and within one year after retirement returns to the same school 
  3.11  district as an interim superintendent. 
  3.12     Sec. 3.  Minnesota Statutes 1996, section 354.44, is 
  3.13  amended by adding a subdivision to read: 
  3.14     Subd. 5b.  [EXEMPTION FOR INTERIM PRINCIPAL.] A person who 
  3.15  performs services as an interim principal because of the death, 
  3.16  disability, termination, or resignation of the previous 
  3.17  principal is exempt from the earnings limitations and reductions 
  3.18  in annuity payments in subdivision 5 for up to 120 working days 
  3.19  of service as an interim principal under section 123.34, 
  3.20  subdivision 10.  Only the school days during which the interim 
  3.21  principal actually worked shall be used to calculate working 
  3.22  days under this subdivision.  During this period of up to 120 
  3.23  working days, the school board may pay the interim principal at 
  3.24  any rate, up to the rate paid to the previous principal.  This 
  3.25  exemption applies only if the school board hiring the interim 
  3.26  principal submits an application for the exemption on a form 
  3.27  prescribed by the executive director, and the executive director 
  3.28  approves the application before the services as interim 
  3.29  principal begin.  The application must certify that the school 
  3.30  board has unanimously approved the exemption from the earnings 
  3.31  limitations and reductions.  The executive director may 
  3.32  prescribe a form for the application.  A school board shall not 
  3.33  apply for more than one exemption in a fiscal year.  No more 
  3.34  than five exemptions may be approved for any person.  Only one 
  3.35  exemption may be approved for any person in a fiscal year.  The 
  3.36  exemption under this subdivision does not apply to a person who 
  4.1   retires from a school district and within one year after 
  4.2   retirement returns to the same school district as an interim 
  4.3   principal. 
  4.4      Sec. 4.  Minnesota Statutes 1996, section 354A.31, 
  4.5   subdivision 3a, is amended to read: 
  4.6      Subd. 3a.  [NO ANNUITY REDUCTION.] (a) The annuity 
  4.7   reduction provisions of subdivision 3 do not apply to a person 
  4.8   who: 
  4.9      (1) retires from the technical college system or from the 
  4.10  Minneapolis, St. Paul, or Duluth school district with at least 
  4.11  ten years of service credit in the system from which the person 
  4.12  retires; 
  4.13     (2) was employed on a full-time basis immediately preceding 
  4.14  retirement as a technical college faculty member for a retiree 
  4.15  from the technical college system or as a teacher for a retiree 
  4.16  from the Minneapolis, St. Paul, or Duluth school district; 
  4.17     (3) begins drawing an annuity from a first class city 
  4.18  teachers retirement association; and 
  4.19     (4) returns to work on not less than a one-third time basis 
  4.20  and not more than a two-thirds time basis in the technical 
  4.21  college system or school district from which the person retired 
  4.22  under an agreement in which the person may not earn a salary of 
  4.23  more than $35,000 in a calendar year from the technical college 
  4.24  system employer. 
  4.25     (b) Initial participation, the amount of time worked, and 
  4.26  the duration of participation under this section must be 
  4.27  mutually agreed upon by the employer and the employee.  The 
  4.28  employer may require up to a one-year notice of intent to 
  4.29  participate in the program as a condition of participation under 
  4.30  this section.  The employer shall determine the time of year the 
  4.31  employee shall work. 
  4.32     (c) Notwithstanding any law to the contrary, a person 
  4.33  eligible under paragraphs (a) and (b) may not earn further 
  4.34  service credit in a first class city teachers retirement 
  4.35  association and is not eligible to participate in the individual 
  4.36  retirement account plan or the supplemental retirement plan 
  5.1   established in chapter 354B as a result of service under this 
  5.2   section.  No employer or employee contribution to any of these 
  5.3   plans may be made on behalf of such a person. 
  5.4      Sec. 5.  [EFFECTIVE DATE.] 
  5.5      Sections 1 to 4 are effective for the 1998-1999 school year 
  5.6   and thereafter.