1.1A bill for an act1.2relating to education finance; modifying school district aid payment shift; 1.3modifying contract terms after expiration of a collective bargaining agreement;1.4amending Minnesota Statutes 2010, section 179A.20, subdivision 6, by adding a 1.5subdivision; Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 1.62.1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.8    Section 1. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, 1.9is amended to read:1.10    Subd. 2. Definitions. (a) "Other district receipts" means payments by county 1.11treasurers pursuant to section 
         276.10, apportionments from the school endowment fund 1.12pursuant to section 
         127A.33, apportionments by the county auditor pursuant to section 1.13127A.34, subdivision 2
         , and payments to school districts by the commissioner of revenue 1.14pursuant to chapter 298.1.15(b) "Cumulative amount guaranteed" means the product of1.16(1) the cumulative disbursement percentage shown in subdivision 3; times1.17(2) the sum of1.18(i) the current year aid payment percentage of the estimated aid and credit 1.19entitlements paid according to subdivision 13; plus1.20(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus1.21(iii) the other district receipts.1.22(c) "Payment date" means the date on which state payments to districts are made 1.23by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 1.24or a weekday which is a legal holiday, the payment shall be made on the immediately 1.25preceding business day. The commissioner may make payments on dates other than 2.1those listed in subdivision 3, but only for portions of payments from any preceding 2.2payment dates which could not be processed by the electronic funds transfer method due 2.3to documented extenuating circumstances.2.4(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 2.5fiscal year 2011, and 6064.3 in fiscal years 2012 year 2012 and 70 in fiscal year 20132.6and later.2.7EFFECTIVE DATE.This section is effective July 1, 2012.2.8    Sec. 2. Minnesota Statutes 2010, section 179A.20, subdivision 6, is amended to read:2.9    Subd. 6. Contract in effect. During the period after contract expiration and prior to 2.10the date when the right to strike matures, and for additional time if the parties agree, the 2.11terms of an existing contract shall continue in effect and shall be enforceable upon both 2.12parties, except as provided in subdivision 6a for school districts.2.13    Sec. 3. Minnesota Statutes 2010, section 179A.20, is amended by adding a subdivision 2.14to read:2.15    Subd. 6a.Contract in effect; school districts.If a contract term would provide a 2.16wage or salary increase to an employee, including, but not limited to, an increase based on 2.17cost of living, longevity, education or training, or performance or merit, the contract term 2.18does not continue in effect and is not enforceable after the expiration date stated in the 2.19contract between a school district and the exclusive representative. The parties may not 2.20agree to extend or honor such a contract term beyond the expiration date of the contract.2.21EFFECTIVE DATE.This section is effective the day following final enactment. 2.22For a collective bargaining agreement that expired before the effective date of this section, 2.23the requirements of this section apply to limit wages to the levels and amounts in effect on 2.24the effective date of this section.