HF 269

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 02/28/2012 02:56pm

A bill for an act
relating to education; providing for a qualified economic offer in teacher
contracts; amending Minnesota Statutes 2010, sections 122A.40, by adding a
subdivision; 122A.41, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 122A.40, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the percentage increase in the general education
formula allowance for the first year of that contract, the teachers may not strike for
any issue relating to the total compensation for the years covered by that contract or
submit any issue relating to the total compensation to interest arbitration under section
179A.16. However, the teachers may strike for noncompensation issues as provided in
section 179A.18, subdivision 2, or submit noncompensation issues to interest arbitration
under section 179A.16.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) on or before January 15 of an
even-numbered calendar year, the allocation of total compensation among the teachers
shall be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the first year of the contract, any remaining percentage of the total compensation,
after subtracting the value of clause (1), is for increases in teacher salary based on first,
alternative teacher pay plans under section 122A.414, second, the number of years of
service, and third, promotion and advanced education.
new text end

new text begin (c) For purposes of this subdivision, the following terms have the meanings given
them.
new text end

new text begin "Teachers" means classroom teachers, principals, and supervisors licensed under
section 122A.18.
new text end

new text begin "Total compensation" means the sum of the following 11 cost components: (i) a
school district's total salary schedule costs excluding alternative teacher compensation
under sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an
alternative teacher professional pay system under sections 122A.413 to 122A.415; (iii)
total health insurance costs paid by the school district for its teachers, excluding any
district contributions to health reimbursement arrangements (HRA) or health savings
accounts (HSA) for teachers; (iv) total life insurance costs paid by the school district
for its teachers; (v) total long-term disability costs paid by the school district for its
teachers; (vi) total dental insurance costs paid by the school district for its teachers; (vii)
total extracurricular costs paid to the school district's teachers; (viii) total costs of lane
changes on the teachers' salary schedule; (ix) total Teachers Retirement Association costs
paid by the school district for its teachers; (x) total Social Security and Medicare (FICA)
contribution costs paid by the school district for its teachers; and (xi) other miscellaneous
costs identified by the school district as payment for teachers' services or benefits such as
special school events, extra service duty, summer school instruction, drivers' education
outside the regular school day and school year, and other direct salary payments to
teachers or fringe benefit costs paid by the school district for its teachers and not otherwise
provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning
July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 122A.41, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the percentage increase in the general education
formula allowance for the first year of that contract, the teachers may not strike for
any issue relating to the total compensation for the years covered by that contract or
submit any issue relating to the total compensation to interest arbitration under section
179A.16. However, the teachers may strike for noncompensation issues as provided in
section 179A.18, subdivision 2, or submit noncompensation issues to interest arbitration
under section 179A.16.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) on or before January 15 of an
even-numbered calendar year, the allocation of total compensation among the teachers
shall be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the first year of the contract, any remaining percentage of the total compensation,
after subtracting the value of clause (1), is for increases in teacher salary based on first,
alternative teacher pay plans under section 122A.414, second, the number of years of
service, and third, promotion and advanced education.
new text end

new text begin (c) For the purposes of this subdivision, the following terms have the meanings
given them.
new text end

new text begin "Teachers" means classroom teachers, principals, and supervisors licensed under
section 122A.18.
new text end

new text begin "Total compensation" means the sum of the following 11 cost components: (i) a
school district's total salary schedule costs excluding alternative teacher compensation
under sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an
alternative teacher professional pay system under sections 122A.413 to 122A.415; (iii)
total health insurance costs paid by the school district for its teachers, excluding any
district contributions to health reimbursement arrangements (HRA) or health savings
accounts (HSA) for teachers; (iv) total life insurance costs paid by the school district
for its teachers; (v) total long-term disability costs paid by the school district for its
teachers; (vi) total dental insurance costs paid by the school district for its teachers; (vii)
total extracurricular costs paid to the school district's teachers; (viii) total costs of lane
changes on the teachers' salary schedule; (ix) total Teachers Retirement Association costs
paid by the school district for its teachers; (x) total Social Security and Medicare (FICA)
contribution costs paid by the school district for its teachers; and (xi) other miscellaneous
costs identified by the school district as payment for teachers' services or benefits such as
special school events, extra service duty, summer school instruction, drivers' education
outside the regular school day and school year, and other direct salary payments to
teachers or fringe benefit costs paid by the school district for its teachers and not otherwise
provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning July
1, 2012.
new text end