HF 1744

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for alternative
compensation for teachers and staff development;
amending Minnesota Statutes 2004, sections 122A.414;
122A.415, subdivisions 1, 3; 126C.10, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2004, section 122A.414, is
amended to read:

122A.414 ALTERNATIVE TEACHER COMPENSATION.

Subdivision 1.

Restructured pay system.

A restructured
teacher compensation system is established under subdivision 2
to provide incentives for teachers to improve their knowledge
and skills and for school districts new text begin and charter schools new text end to
recruit and retain highly qualified teachers, and to support
teachers' roles in improving students' educational achievement.

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this program, a school district must have
an educational improvement plan as described in section 122A.413
and an alternative teacher professional pay system as described
in paragraph (b).

(b) The alternative teacher professional pay system must:

(1) describe deleted text begin the conditions necessary for deleted text end new text begin how teachers can
achieve new text end career advancement and additional compensation;

(2) new text begin describe how the school district or charter school will
new text end provide career advancement options for teachers deleted text begin retaining deleted text end new text begin that
allow them to retain new text end primary roles in student instruction new text begin ,
including options for multiple career paths such as a master or
mentor teacher who helps peers improve their teaching skills new text end ;

(3) deleted text begin use a professional pay system that replaces the step
and lane salary schedule and is not based on years of service;
deleted text end

deleted text begin (4) encourage teachers' continuous improvement in content
knowledge, pedagogy, and use of best practices; and
deleted text end

deleted text begin (5) implement an objective evaluation system, including
classroom observation, that is aligned with the district's or
the site's educational improvement plan as described in section
122A.413 deleted text end new text begin eliminate the "steps and lanes" salary schedule and
compensate teachers for performing satisfactory service,
achieving professional teaching goals, and undergoing
evaluations under clause (6);
new text end

new text begin (4) compensate teachers for their performance based on, at
a minimum:
new text end

new text begin (i) school achievement gains under section 120B.35 or
locally selected standardized assessment outcomes, or both;
new text end

new text begin (ii) student achievement gains, where available, under
section 120B.35 or locally selected standardized assessment
outcomes, or both; and
new text end

new text begin (iii) results of individual teacher evaluations by a
locally selected evaluation team under clause (6);
new text end

new text begin (5) provide integrated ongoing site-based and teacher-led
professional development activities during the school day that
are aligned with student needs under sections 122A.413 and
122A.601, if enacted; and
new text end

new text begin (6) provide an objective and comprehensive teacher
evaluation system based on the educational improvement plan
under section 122A.413, the staff development plan under section
122A.601, if enacted, and multiple evaluations of a teacher's
performance by the locally selected evaluation team during the
school year that include classroom observations new text end .

Subd. 3.

Report.

Participating districts deleted text begin and deleted text end new text begin , new text end school
sites new text begin , and charter schools new text end must report on the implementation and
effectiveness of the alternative teacher compensation plan,
particularly addressing each requirement under subdivision 2 and
make biennial recommendations by January 1 to their school
boards. The school boards shall transmit new text begin a copy of the report
with new text end a summary of the findings and recommendations of their
district new text begin or charter school new text end to the commissioner.

Sec. 2.

Minnesota Statutes 2004, section 122A.415,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin aid deleted text end new text begin revenue new text end amount.

(a) A school district
that meets the conditions of section 122A.414 and submits an
application approved by the commissioner is eligible for
alternative compensation deleted text begin aid deleted text end new text begin revenue new text end .

new text begin (b) new text end The commissioner must consider only applications
submitted jointly by a school district and the exclusive
representative of the teachers for participation in the
program. The application must contain a formally adopted
collective bargaining agreement, memorandum of understanding, or
other binding agreement that new text begin :
new text end

new text begin (1) new text end implements an alternative teacher professional pay
system consistent with section 122A.414 new text begin ;
new text end

new text begin (2) complies with 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 between two and four years; new text end and

new text begin (3) new text end includes all teachers in a district, all teachers at a
school site deleted text begin , or at least 25 percent of the teachers in a
district. The commissioner, in approving applications, may give
preference to applications involving entire districts or sites
or to applications that align measures of teacher performance
with student academic achievement and progress under section
120B.35, subdivision 1 deleted text end .

deleted text begin (b) deleted text end new text begin (c) The revenue is only available to school districts
and charter schools that implement an alternative teacher
compensation system before the school year begins.
new text end

new text begin (d) new text end Alternative new text begin teacher new text end compensation deleted text begin aid deleted text end new text begin revenue new text end for a
qualifying school district, site, deleted text begin or portion of a district or
school site is as follows:
deleted text end

deleted text begin (1) for a school district deleted text end new text begin or charter school new text end in which the
school board and the exclusive representative of the teachers
agree to place all teachers in the district or at the site on
the alternative compensation schedule, alternative
compensation deleted text begin aid deleted text end new text begin revenue new text end equals deleted text begin $150 deleted text end new text begin $260 new text end times the district's
or the site's number of pupils enrolled on October 1 of the
previous fiscal year deleted text begin ; or
deleted text end

deleted text begin (2) for a district in which the school board and the
exclusive representative of the teachers agree that at least 25
percent of the district's licensed teachers will be paid on the
alternative compensation schedule, alternative compensation aid
equals $150 times the percentage of participating teachers times
the district's number of pupils enrolled as of October 1 of the
previous fiscal year deleted text end .

new text begin (e) The charter school board of directors must submit to
the commissioner an application that contains:
new text end

new text begin (1) an agreement to implement an alternative teacher
compensation program under section 122A.414;
new text end

new text begin (2) a resolution by the charter school board of directors
adopting the agreement; and
new text end

new text begin (3) the record of a formal vote by the teachers employed at
the charter school indicating that at least 70 percent of all
teachers agree to implement the alternative teacher compensation
program, unless the charter school submits an alternative
compensation plan under section 122A.414 before the first year
of operation.
new text end

new text begin (f) Alternative compensation revenue for a qualifying
charter school must be calculated under section 126C.10,
subdivision 34, paragraph (b).
new text end

Sec. 3.

Minnesota Statutes 2004, section 122A.415,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin aid deleted text end new text begin revenue new text end timing.

(a) Districts deleted text begin or deleted text end new text begin , school
new text end sites new text begin , or charter schools new text end with approved applications must
receive alternative compensation deleted text begin aid deleted text end new text begin revenue new text end for each school
year that the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or charter school
new text end participates in the program as described in this subdivision.
Districts deleted text begin or deleted text end new text begin , school new text end sites new text begin , or charter schools new text end with applications
deleted text begin received deleted text end new text begin approved new text end by the commissioner before June 1 of the first
year of a two-year contract shall receive alternative
compensation deleted text begin aid deleted text end new text begin revenue new text end for deleted text begin both deleted text end new text begin school new text end years deleted text begin of the
contract. Districts or sites with applications received by the
commissioner after June 1 of the first year of a two-year
contract shall receive alternative compensation aid only for the
second year of the contract deleted text end new text begin in which the alternative teacher
compensation program is implemented for the full school
year new text end . new text begin For fiscal year 2007 and later, new text end a qualifying district deleted text begin or deleted text end new text begin ,
school new text end site new text begin , or charter school new text end that received alternative
compensation aid for the previous fiscal year must receive at
least an amount new text begin of alternative teacher compensation revenue
new text end equal to the lesser of the amount it received for the previous
fiscal year or deleted text begin its proportionate share of the previous year's
appropriation deleted text end new text begin the amount it qualifies for under subdivision 1
for the current fiscal year new text end if the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or
charter school new text end submits a timely application and the commissioner
determines that the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or charter school
new text end continues to implement an alternative teacher professional pay
system, consistent with its application under this section. deleted text begin The
commissioner must approve initial applications for school
districts qualifying under subdivision 1, paragraph (b), clause
(1), by January 15 of each year. If any money remains, the
commissioner must approve aid amounts for school districts
qualifying under subdivision 1, paragraph (b), clause (2), by
February 15 of each year.
deleted text end

(b) The commissioner shall select applicants that qualify
for this program, notify school districts and school sites about
the program, develop and disseminate application materials, and
carry out other activities needed to implement this section.

Sec. 4.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 34. new text end

new text begin Basic alternative compensation aid. new text end

new text begin (a) For
fiscal year 2006, the basic alternative compensation aid for a
district or charter school with an alternative compensation plan
approved under section 122A.415 equals the alternative
compensation revenue according to section 122A.415, subdivision
1.
new text end

new text begin (b) For fiscal year 2007 and later, the basic alternative
compensation aid for a district with an alternative compensation
plan approved under section 122A.415 equals 73.1 percent of the
alternative compensation revenue according to section 122A.415,
subdivision 1. The basic alternative compensation aid for a
charter school with an alternative compensation plan approved
under section 122A.415 equals the school's alternative
compensation revenue according to section 122A.415, subdivision
1, times the ratio of the sum of the alternative compensation
aid and alternative compensation levy for all participating
school districts to the maximum alternative compensation revenue
for those districts according to section 122A.415, subdivision 1.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b) and section
122A.415, subdivision 1, the state total basic alternative
compensation aid entitlement must not exceed $19,329,000 for
fiscal year 2006 and $75,636,000 for fiscal year 2007 and
later. The commissioner must limit the amount of alternative
compensation aid approved under section 122A.415 so as not to
exceed these limits.
new text end

Sec. 5.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 35. new text end

new text begin Alternative compensation levy. new text end

new text begin For fiscal year
2007 and later, the alternative compensation levy for a district
receiving basic alternative compensation aid equals the product
of (1) the difference between the district's alternative
compensation revenue and the district's basic alternative
compensation aid times (2) the lesser of one or the ratio of the
district's adjusted net tax capacity per adjusted pupil unit to
$6,900.
new text end

Sec. 6.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 36. new text end

new text begin Alternative compensation aid. new text end

new text begin (a) For fiscal
year 2007 and later, a district's alternative compensation
equalization aid equals the district's alternative compensation
revenue minus the district's basic alternative compensation aid
minus the district's alternative compensation levy. If a
district does not levy the entire amount permitted, the
alternative compensation equalization aid must be reduced in
proportion to the actual amount levied.
new text end

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

Sec. 7. new text begin ALTERNATIVE COMPENSATION REVENUE GUARANTEE.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 122A.415,
subdivision 1, and 126C.10, subdivision 34, a school district
that received alternative compensation aid for fiscal year 2005,
but does not qualify for alternative compensation revenue for
all sites in the district for fiscal year 2006 or 2007, shall
receive additional basic alternative compensation aid for that
fiscal year equal to the lesser of the amount of alternative
compensation aid it received for fiscal year 2005 or the amount
it would have received for that fiscal year under Minnesota
Statutes 2004, section 122A.415, subdivision 1, for teachers at
sites not qualifying for alternative compensation revenue for
that fiscal year, if the district submits a timely application
and the commissioner determines that the district continues to
implement an alternative professional pay system, consistent
with its application under Minnesota Statutes 2004, section
122A.415, for fiscal year 2005. The additional basic
alternative compensation aid under this section must not be used
in calculating the alternative compensation levy under Minnesota
Statutes, section 126C.10, subdivision 35. This section applies
only to fiscal years 2006 and 2007 and does not apply to later
fiscal years.
new text end