1.1 	A bill for an act
1.2 	relating to education; modifying basic alternative teacher compensation aid;
1.3 	amending Minnesota Statutes 2006, sections 122A.415, subdivisions 1, 3; 
1.4 	126C.10, subdivision 34.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 122A.415, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
1.9 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
1.10 	application approved by the commissioner is eligible for alternative teacher compensation 
1.11 	revenue.
1.12 	(b) For school district and intermediate school district applications, the commissioner 
1.13 	must consider only those applications to participate that are submitted jointly by a 
1.14 	district and the exclusive representative of the teachers. The application must contain an 
1.15 	alternative teacher professional pay system agreement that:
1.16 	(1) implements an alternative teacher professional pay system consistent with 
1.17 	section 122A.414; and
1.18 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
1.19 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
1.20 	district may enter into a contract for a term of two or four years.
1.21 	Alternative teacher compensation revenue for a qualifying school district or site in 
1.22 	which the school board and the exclusive representative of the teachers agree to place 
1.23 	teachers in the district or at the site on the alternative teacher professional pay system 
1.24 	equals $260 times the ratio of the formula allowance for the current fiscal year to the 
2.1 	formula allowance for fiscal year 2007 times the number of pupils enrolled at the district 
2.2 	or site on October 1 of the previous fiscal year. Alternative teacher compensation revenue 
2.3 	for a qualifying intermediate school district must be calculated under section 126C.10, 
2.4 	subdivision 34, paragraphs (a) and (b).
2.5 	(c) For a newly combined or consolidated district, the revenue shall be computed 
2.6 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
2.7 	into the combination or consolidation. The commissioner may adjust the revenue 
2.8 	computed for a site using prior year data to reflect changes attributable to school closings, 
2.9 	school openings, or grade level reconfigurations between the prior year and the current 
2.10 	year.
2.11 	(d) The revenue is available only to school districts, intermediate school districts, 
2.12 	school sites, and charter schools that fully implement an alternative teacher professional 
2.13 	pay system by October 1 of the current school year.

2.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

2.15 	Sec. 2. Minnesota Statutes 2006, section 122A.415, subdivision 3, is amended to read:
2.16 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
2.17 	or charter schools with approved applications must receive alternative compensation 
2.18 	revenue for each school year that the district, intermediate school district, school site, 
2.19 	or charter school implements an alternative teacher professional pay system under this 
2.20 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
2.21 	intermediate school district, school site, or charter school that received alternative teacher 
2.22 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
2.23 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
2.24 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
2.25 	the district, intermediate school district, school site, or charter school submits a timely 
2.26 	application and the commissioner determines that the district, intermediate school district, 
2.27 	school site, or charter school continues to implement an alternative teacher professional 
2.28 	pay system, consistent with its application under this section.
2.29 	(b) The commissioner shall approve applications that comply with subdivision 1, 
2.30 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
2.31 	school, in the order in which they are received, select applicants that qualify for this 
2.32 	program, notify school districts, intermediate school districts, school sites, and charter 
2.33 	schools about the program, develop and disseminate application materials, and carry out 
2.34 	other activities needed to implement this section.
3.1 	(c) For applications approved under this section before August 1 of the fiscal year for 
3.2 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
3.3 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 
3.4 	2006 and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of 
3.5 	the state total basic alternative teacher compensation aid entitlement allocated to charter 
3.6 	schools must not exceed the product of $3,374,000 times the ratio of the state total charter 
3.7 	school enrollment for the previous fiscal year to the state total charter school enrollment 
3.8 	for the second previous year. Additional basic alternative teacher compensation aid may 
3.9 	be approved for charter schools after August 1, not to exceed the charter school limit for 
3.10 	the following fiscal year, if the basic alternative teacher compensation aid entitlement 
3.11 	for school districts based on applications approved by August 1 does not expend the 
3.12 	remaining amount under the limit.

3.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

3.14 	Sec. 3. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
3.15 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
3.16 	the basic alternative teacher compensation aid for a school district or an intermediate 
3.17 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
3.18 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
3.19 	basic alternative teacher compensation aid for a charter school with an approved plan 
3.20 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
3.21 	in the school on October 1 of the previous school year, or on October 1 of the current 
3.22 	fiscal year for a charter school in the first year of operation.
3.23 	(b)(a) For fiscal year 2007 and later, the basic alternative teacher compensation aid 
3.24 	for a school district with a plan approved under section 122A.414, subdivision 2b, equals 
3.25 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
3.26 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
3.27 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
3.28 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
3.29 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
3.30 	year for a charter school in the first year of operation, times the ratio of the sum of the 
3.31 	alternative teacher compensation aid and alternative teacher compensation levy for all 
3.32 	participating school districts to the maximum alternative teacher compensation revenue 
3.33 	for those districts under section 122A.415, subdivision 1.
3.34 	(b) For fiscal year 2008 and later, the basic alternative teacher compensation aid for 
3.35 	a school district with a plan approved under section 122A.414, subdivision 2b, equals the 
4.1 	alternative teacher compensation revenue under section 122A.415, subdivision 1, minus 
4.2 	$70 times the number of pupils enrolled at participating sites on October 1 of the previous 
4.3 	fiscal year. The basic alternative teacher compensation aid for an intermediate school 
4.4 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
4.5 	and 2b, if the recipient is a charter school, equals $260 times the ratio of the formula 
4.6 	allowance for the current fiscal year to the formula allowance for fiscal year 2007 times 
4.7 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
4.8 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
4.9 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
4.10 	compensation levy for all participating school districts to the maximum alternative teacher 
4.11 	compensation revenue for those districts under section 122A.415, subdivision 1.
4.12 	(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
4.13 	the state total basic alternative teacher compensation aid entitlement must not exceed 
4.14 	$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later. For 
4.15 	fiscal years 2009 and later, the state total basic alternative teacher compensation aid 
4.16 	entitlement must not exceed the product of the limit on state total basic alternative teacher 
4.17 	compensation aid for the previous fiscal year times 1.1 times the ratio of the formula 
4.18 	allowance for the current fiscal year to the formula allowance for the previous fiscal 
4.19 	year. The commissioner must limit the amount of alternative teacher compensation aid 
4.20 	approved under section 122A.415 so as not to exceed these limits.

4.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.