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HF 2271

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/19/2014 12:17pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2014
1st Engrossment Posted on 03/19/2014

Current Version - 1st Engrossment

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A bill for an act
relating to education; providing for a performance-based pay system for teachers;
amending Minnesota Statutes 2012, sections 124D.10, by adding a subdivision;
126C.10, by adding subdivisions; Minnesota Statutes 2013 Supplement, sections
122A.40, subdivision 8; 122A.41, subdivision 5; 124D.11, subdivision 1;
126C.10, subdivision 1; 126C.13, subdivision 4; proposing coding for new law in
Minnesota Statutes, chapter 136D; repealing Minnesota Statutes 2012, sections
122A.413; 122A.414; 122A.4144; 122A.415, subdivisions 1, 3; 122A.4155;
122A.416; Minnesota Statutes 2013 Supplement, section 122A.415, subdivisions
4, 5, 6.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8,
is amended to read:


Subd. 8.

Development, evaluation, deleted text beginanddeleted text end peer coaching deleted text beginfor continuing contract
teachers
deleted text endnew text begin, and performance-linked paynew text end.

(a) To improve student learning and successnew text begin and
to support teachers' roles in improving students' educational achievement
new text end, a school board
and an exclusive representative of the teachers in the district, consistent with paragraph
(b), may develop a teacher evaluation and peer review process for probationary and
continuing contract teachers through joint agreementnew text begin and, consistent with paragraph (d),
may develop a performance pay system
new text end. If a school board and the exclusive representative
of the teachers do not agree to an annual teacher evaluation and peer review process, then
the school board and the exclusive representative of the teachers must implement the plan
for evaluation and review under paragraph (c). The process must include having trained
observers serve as peer coaches or having teachers participate in professional learning
communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
teachers:

(1) must, for probationary teachers, provide for all evaluations required under
subdivision 5;

(2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, the
opportunity to participate in a professional learning community under paragraph (a), and
at least one summative evaluation performed by a qualified and trained evaluator such as a
school administrator. For the years when a tenured teacher is not evaluated by a qualified
and trained evaluator, the teacher must be evaluated by a peer review;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and
teacher collaboration;

(6) may include mentoring and induction programs;

(7) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;

(8) must use data from valid and reliable assessments aligned to state and local
academic standards and must use state and local measures of student growth that may
include value-added models or student learning goals to determine 35 percent of teacher
evaluation results;

(9) must use longitudinal data on student engagement and connection, and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible;

(10) must require qualified and trained evaluators such as school administrators to
perform summative evaluations;

(11) must give teachers not meeting professional teaching standards under clauses
(3) through (10) support to improve through a teacher improvement process that includes
established goals and timelines; and

(12) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (11) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data
under section 13.43.

(c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section and
section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
evaluation and peer review process. The teacher evaluation process created under this
subdivision does not create additional due process rights for probationary teachers under
subdivision 5.

new text begin (d) To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for school districts to recruit and retain
highly qualified teachers and encourage highly qualified teachers to undertake challenging
assignments, the performance pay system must, consistent with paragraph (b):
new text end

new text begin (1) identify assessment and evaluation tools to measure student performance and
progress;
new text end

new text begin (2) establish performance goals and benchmarks for improvement;
new text end

new text begin (3) describe how teachers can achieve career advancement and additional
compensation;
new text end

new text begin (4) describe how the school district will provide teachers with career advancement
options that allow teachers to retain primary roles in student instruction and facilitate
site-focused professional development that helps other teachers improve their skills;
new text end

new text begin (5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base all compensation increases while the performance pay system
is in place on teacher performance; and
new text end

new text begin (6) be negotiated and adopted according to 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 two or four years.
new text end

new text begin (e) Notwithstanding section 179A.20 or other law to the contrary, a school board and
the exclusive representative of the teachers may agree to reopen a collective bargaining
agreement for the purpose of entering into a performance pay system agreement under
paragraph (d). Negotiations for a contract reopened under this section must be limited to
issues related to the performance pay system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2015-2016 school year and later.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is
amended to read:


Subd. 5.

Development, evaluation, deleted text beginanddeleted text end peer coaching deleted text beginfor continuing contract
teachers
deleted text endnew text begin, and performance-linked paynew text end.

(a) To improve student learning and successnew text begin and
to support teachers' roles in improving students' educational achievement
new text end, a school board
and an exclusive representative of the teachers in the district, consistent with paragraph
(b), may develop an annual teacher evaluation and peer review process for probationary
and nonprobationary teachers through joint agreementnew text begin and consistent with paragraph (d),
may develop a performance pay system
new text end. If a school board and the exclusive representative
of the teachers in the district do not agree to an annual teacher evaluation and peer review
process, then the school board and the exclusive representative of the teachers must
implement the plan for evaluation and review developed under paragraph (c). The process
must include having trained observers serve as peer coaches or having teachers participate
in professional learning communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching
practices and improve student learning and success, the annual evaluation process for
teachers:

(1) must, for probationary teachers, provide for all evaluations required under
subdivision 2;

(2) must establish a three-year professional review cycle for each teacher that
includes an individual growth and development plan, a peer review process, the
opportunity to participate in a professional learning community under paragraph (a), and
at least one summative evaluation performed by a qualified and trained evaluator such
as a school administrator;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and
122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and
teacher collaboration;

(6) may include mentoring and induction programs;

(7) must include an option for teachers to develop and present a portfolio
demonstrating evidence of reflection and professional growth, consistent with section
122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment
based on student work samples and examples of teachers' work, which may include video
among other activities for the summative evaluation;

(8) must use data from valid and reliable assessments aligned to state and local
academic standards and must use state and local measures of student growth that may
include value-added models or student learning goals to determine 35 percent of teacher
evaluation results;

(9) must use longitudinal data on student engagement and connection and other
student outcome measures explicitly aligned with the elements of curriculum for which
teachers are responsible;

(10) must require qualified and trained evaluators such as school administrators to
perform summative evaluations;

(11) must give teachers not meeting professional teaching standards under clauses
(3) through (10) support to improve through a teacher improvement process that includes
established goals and timelines; and

(12) must discipline a teacher for not making adequate progress in the teacher
improvement process under clause (11) that may include a last chance warning,
termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data
under section 13.43.

(c) The department, in consultation with parents who may represent parent
organizations and teacher and administrator representatives appointed by their respective
organizations, representing the Board of Teaching, the Minnesota Association of School
Administrators, the Minnesota School Boards Association, the Minnesota Elementary
and Secondary Principals Associations, Education Minnesota, and representatives of
the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
in teacher evaluation, must create and publish a teacher evaluation process that complies
with the requirements in paragraph (b) and applies to all teachers under this section and
section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
evaluation and peer review process. The teacher evaluation process created under this
subdivision does not create additional due process rights for probationary teachers under
subdivision 2.

new text begin (d) To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for school districts to recruit and retain
highly qualified teachers and encourage highly qualified teachers to undertake challenging
assignments, the performance pay system must, consistent with paragraph (b):
new text end

new text begin (1) identify assessment and evaluation tools to measure student performance and
progress;
new text end

new text begin (2) establish performance goals and benchmarks for improvement;
new text end

new text begin (3) describe how teachers can achieve career advancement and additional
compensation;
new text end

new text begin (4) describe how the school district will provide teachers with career advancement
options that allow teachers to retain primary roles in student instruction and facilitate
site-focused professional development that helps other teachers improve their skills;
new text end

new text begin (5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base all compensation increases while the performance pay system
is in place on teacher performance; and
new text end

new text begin (6) be negotiated and adopted according to 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 two or four years.
new text end

new text begin (e) Notwithstanding section 179A.20 or other law to the contrary, a school board and
the exclusive representative of the teachers may agree to reopen a collective bargaining
agreement for the purpose of entering into a performance pay system agreement under
paragraph (d). Negotiations for a contract reopened under this section must be limited to
issues related to the performance pay system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2015-2016 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2012, section 124D.10, is amended by adding a subdivision
to read:


new text begin Subd. 11a. new text end

new text begin Performance pay for charter schools. new text end

new text begin To provide incentives to
encourage teachers to improve their knowledge and instructional skills to improve
student learning and for charter schools to recruit and retain highly qualified teachers and
encourage highly qualified teachers to undertake challenging assignments, a charter school
may develop a performance pay system. If developed, the performance pay system must:
new text end

new text begin (1) include the elements in section 122A.40, subdivision 8, paragraph (d), clauses
(1) to (5);
new text end

new text begin (2) if governed by a collective bargaining agreement, comply with section 122A.40,
subdivision 8, paragraph (d), clause (6);
new text end

new text begin (3) be adopted by the charter school board of directors adopting the agreement; and
new text end

new text begin (4) be approved by a formal vote of the teachers employed at the charter school
indicating that at least 70 percent of all teachers agree to implement the performance pay
system, unless the charter school submits a performance pay system agreement under this
subdivision before the first year of operation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2015-2016 school year and later.
new text end

Sec. 4.

Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
amended to read:


Subdivision 1.

General education revenue.

General education revenue must be
paid to a charter school as though it were a district. The general education revenue for
each adjusted pupil unit is the state average general education revenue per pupil unit, plus
the referendum equalization aid allowance in the pupil's district of residence, minus an
amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2
, times .0466, calculated without basic skills revenue, extended time revenue,
pension adjustment revenue,new text begin evaluation and performance revenue,new text end transition revenue, and
transportation sparsity revenue, plus basic skills revenue, extended time revenue, pension
adjustment revenue, new text beginevaluation and performance aid according to section 126C.10,
subdivision 39,
new text endand transition revenue as though the school were a school district. The
general education revenue for each extended time pupil unit equals $4,794.

Sec. 5.

Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 1, is
amended to read:


Subdivision 1.

General education revenue.

(a) For fiscal years 2013 and 2014, the
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, small schools revenue, basic skills
revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, equity revenue, alternative teacher compensation
revenue, and transition revenue.

(b) For fiscal year 2015 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and
talented revenue, declining enrollment revenue, location equity revenue, small schools
revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
transportation sparsity revenue, total operating capital revenue, equity revenue, pension
adjustment revenue,new text begin evaluation and performance revenue,new text end and transition revenue.

Sec. 6.

Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 38. new text end

new text begin Evaluation and performance revenue. new text end

new text begin (a) For fiscal year 2016 and later,
evaluation and performance revenue for a school district or charter school in which the
school board, intermediate school board, or charter school board of directors (1) notified
the commissioner by October 1 of the previous fiscal year of the district's or charter
school's intention to implement a performance plan under section 122A.40, subdivision 8,
paragraph (d); 122A.41, subdivision 5, paragraph (d); 136D.02; or 124D.10, subdivision
11a, and (2) certifies to the commissioner by October 1 of that fiscal year that the district,
intermediate district, or charter school has implemented the performance plan, equals $260
times the number of pupils enrolled at the district or site on October 1 of the previous
fiscal year. Of this amount, ... percent must be reserved for compensation increases
consistent with the adopted performance plan.
new text end

new text begin (b) For fiscal year 2016 and later, evaluation and performance revenue for a school
district or charter school not receiving revenue under paragraph (a) is equal to $... times
the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.
new text end

new text begin (c) Evaluation and performance revenue for an intermediate school district equals
the basic evaluation and performance aid for an intermediate school district calculated
under subdivision 39.
new text end

new text begin (d) Notwithstanding paragraphs (a), (b), and (c), the evaluation and performance
revenue for a school district, intermediate school district, or charter school receiving
revenue under section 122A.415 for the current school year equals $0.
new text end

new text begin (e) For a newly combined or consolidated district, the revenue shall be computed
using the sum of pupils enrolled on October 1 of the previous year in the districts entering
into the combination or consolidation. The commissioner may adjust the revenue computed
for a site using prior year data to reflect changes attributable to school closings, school
openings, or grade level reconfigurations between the prior year and the current year.
new text end

new text begin (f) For a charter school in the first year of operation, the revenue shall be computed
using the number of pupils enrolled on October 1 of the current year.
new text end

Sec. 7.

Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 39. new text end

new text begin Basic evaluation and performance aid. new text end

new text begin For fiscal year 2016 and
later, the basic evaluation and performance aid equals 65 percent of the evaluation and
performance revenue under subdivision 38. The basic evaluation and performance aid
for an intermediate school district equals $260 times the number of pupils enrolled in the
school on October 1 of the previous year times the ratio of the sum of the evaluation and
performance aid and evaluation and performance levy for all participating school districts
to the maximum evaluation and performance revenue for those districts under subdivision
38. The basic evaluation and performance aid for a charter school equals the evaluation
and performance revenue under subdivision 38.
new text end

Sec. 8.

Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 40. new text end

new text begin Evaluation and performance levy. new text end

new text begin For fiscal year 2016 and later,
the evaluation and performance levy for a school district equals the product of (1) the
difference between the district's evaluation and performance revenue and the district's
basic evaluation and performance aid, times (2) the lesser of one or the ratio of the
district's adjusted net tax capacity per adjusted pupil unit to $6,100.
new text end

Sec. 9.

Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 41. new text end

new text begin Evaluation and performance equalization aid. new text end

new text begin (a) For fiscal year 2016
and later, a district's evaluation and performance equalization aid equals the district's
evaluation and performance revenue minus the district's basic evaluation and performance
aid minus the district's evaluation and performance levy. If a district does not levy the
entire amount permitted, the evaluation and performance equalization aid must be reduced
in proportion to the actual amount levied.
new text end

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

Sec. 10.

Minnesota Statutes 2013 Supplement, section 126C.13, subdivision 4, is
amended to read:


Subd. 4.

General education aid.

(a) For fiscal years 2013 and 2014 only, a district's
general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and

(8) online learning aid according to section 124D.096.

(b) For fiscal year 2015 and later, a district's general education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue,
location equity revenue, new text beginevaluation and performance revenue, new text endand transition revenue,
minus the student achievement levy, multiplied times the ratio of the actual amount of
student achievement levy levied to the permitted student achievement levy; plus

(2) equity aid under section 126C.10, subdivision 30; plus

(3) transition aid under section 126C.10, subdivision 33; plus

(4) shared time aid under section 126C.10, subdivision 7; plus

(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus

(6) online learning aid under section 124D.096; deleted text beginplus
deleted text end

(7) location equity aid according to section 126C.10, subdivision 2d, paragraph
(d)deleted text begin.deleted text endnew text begin; plus
new text end

new text begin (8) evaluation and performance aid according to section 126C.10, subdivision 41,
paragraph (b).
new text end

Sec. 11.

new text begin [136D.02] PERFORMANCE PAY SYSTEM.
new text end

new text begin To provide incentives to encourage teachers to improve their knowledge and
instructional skills to improve student learning and for intermediate school districts
to recruit and retain highly qualified teachers and encourage highly qualified teachers
to undertake challenging assignments, an intermediate school district may develop a
performance pay system. If developed, the performance pay system must include the
elements in section 122A.40, subdivision 8, paragraph (d), clauses (1) to (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2015-2016 school year and later.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 122A.413; 122A.414; 122A.4144; 122A.415,
subdivisions 1 and 3; 122A.4155; and 122A.416,
new text end new text begin and new text end

new text begin Minnesota Statutes 2013
Supplement, section 122A.415, subdivisions 4, 5, and 6,
new text end new text begin are repealed effective for the
2017-2018 school year and later.
new text end