1.1 	A bill for an act
1.2 	relating to education finance; providing funding for the Increase Teachers of Color 
1.3 	Act; seeking to double the number of teachers of color and teachers who are 
1.4 	American Indian in Minnesota from four percent to eight percent while ensuring 
1.5 	that by 2020 at least 20 percent of candidates in pathways to becoming a teacher 
1.6 	are of color or are American Indian; requiring a report; appropriating money;
1.7 	amending Minnesota Statutes 2016, sections 122A.414, subdivision 2; 122A.70, 
1.8 	subdivision 1; 124D.09, subdivision 10; 136A.1791; Laws 2015, First Special 
1.9 	Session chapter 3, article 2, section 70, subdivision 12, as amended; Laws 2016, 
1.10 	chapter 189, article 25, section 62, subdivision 5.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2016, section 122A.414, subdivision 2, is amended to read:
1.13 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this program, 
1.14 	a school district, an intermediate school district consistent with paragraph (d), a school site, 
1.15 	or a charter school must have a world's best workforce plan under section 120B.11 and an 
1.16 	alternative teacher professional pay system agreement under paragraph (b). A charter school 
1.17 	participant also must comply with subdivision 2a.
1.18 	(b) The alternative teacher professional pay system agreement must:
1.19 	(1) describe how teachers can achieve career advancement and additional compensation;
1.20 	(2) describe how the school district, intermediate school district, school site, or charter 
1.21 	school will provide teachers with career advancement options that allow teachers to retain 
1.22 	primary roles in student instruction and facilitate site-focused professional development 
1.23 	that helps other teachers improve their skills;
1.24 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
1.25 	paid before implementing the pay system from being reduced as a result of participating in 
2.1 	this system, base at least 60 percent of any compensation increase on teacher performance 
2.2 	using:
2.3 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
2.4 	standardized assessment outcomes, or both;
2.5 	(ii) measures of student growth and literacy that may include value-added models or 
2.6 	student learning goals, consistent with section 122A.40, subdivision 8, paragraph (b), clause 
2.7 	(9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures that include 
2.8 	the academic literacy, oral academic language, and achievement of English learners under 
2.9 	section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, subdivision 5, 
2.10 	paragraph (b), clause (10); and
2.11 	(iii) an objective evaluation program under section 122A.40, subdivision 8, paragraph 
2.12 	(b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
2.13 	(4) provide for participation in job-embedded learning opportunities such as professional 
2.14 	learning communities to improve instructional skills and learning that are aligned with 
2.15 	student needs under section 120B.11, consistent with the staff development plan under 
2.16 	section 122A.60 and led during the school day by trained teacher leaders such as master or 
2.17 	mentor teachers;
2.18 	(5) allow any teacher in a participating school district, intermediate school district, school 
2.19 	site, or charter school that implements an alternative pay system to participate in that system 
2.20 	without any quota or other limit; and
2.21 	(6) encourage collaboration rather than competition among teachers.
2.22 	(c) The alternative teacher professional pay system may:
2.23 	(1) include a hiring bonus or other added compensation for to provide students with 
2.24 	equitable access to teachers who, consistent with section 120B.11, subdivision 2, clause 
2.25 	(3):
2.26 	(i) are identified as effective or highly effective under the local teacher professional 
2.27 	review cycle and or, when being considered for hire as first-year teachers, have demonstrated 
2.28 	skills during student teaching for being highly effective at closing achievement gaps;
2.29 	(ii) work in a high-need or hard-to-fill position; or
2.30 	(iii) are hired to work in a hard-to-staff school such as a school with a majority of students 
2.31 	whose families meet federal poverty guidelines, a geographically isolated school, or a school 
2.32 	identified by the state as eligible for targeted programs or services for its students; and
3.1 	(2) include incentives for teachers to obtain a master's degree or other advanced 
3.2 	certification with at least 18 credits in their content field of licensure required for teaching 
3.3 	concurrent enrollment or college in the schools courses, or to pursue the training or education 
3.4 	necessary to obtain an additional licensure in shortage areas identified by the district or 
3.5 	charter school,; or
3.6 	(3) help fund a "grow your own" Grow Your Own new teacher initiative involving 
3.7 	nonlicensed educational professionals, including paraprofessionals and cultural liaisons, 
3.8 	who are of color or who are American Indian.
3.9 	(d) An intermediate school district under this subdivision must demonstrate in a form 
3.10 	and manner determined by the commissioner that it uses the aid it receives under this section 
3.11 	for activities identified in the alternative teacher professional pay system agreement.

3.12 	Sec. 2. Minnesota Statutes 2016, section 122A.70, subdivision 1, is amended to read:
3.13 		Subdivision 1.Teacher mentoring, induction, and retention programs. (a) School 
3.14 	districts are encouraged to develop teacher mentoring, induction, and retention programs 
3.15 	for teachers new to the profession or district, including teaching residents, teachers in 
3.16 	high-need fields, teachers of color, teachers who are American Indian, teachers with special 
3.17 	needs, or experienced teachers in need of peer coaching.
3.18 	(b) Teacher mentoring programs must support districts' teacher evaluation and peer 
3.19 	review processes under sections 122A.40, subdivision 8, and 122A.41, subdivision 5. A 
3.20 	district may use staff development revenue under sections 122A.60 and 122A.61, special 
3.21 	grant programs established by the legislature, or another funding source to pay a stipend of 
3.22 	up to $500 to a mentor.

3.23 	Sec. 3. Minnesota Statutes 2016, section 124D.09, subdivision 10, is amended to read:
3.24 		Subd. 10.Courses according to agreements. (a) An eligible pupil, according to 
3.25 	subdivision 5, may enroll in a nonsectarian course taught by a secondary teacher or a 
3.26 	postsecondary faculty member and offered at a secondary school, or another location, 
3.27 	according to an agreement between a public school board and the governing body of an 
3.28 	eligible public postsecondary system or an eligible private postsecondary institution, as 
3.29 	defined in subdivision 3. All provisions of this section shall apply to a pupil, public school 
3.30 	board, district, and the governing body of a postsecondary institution, except as otherwise 
3.31 	provided.
4.1 	(b) To encourage students, especially American Indian students and students of color, 
4.2 	to consider teaching as a profession, participating schools, school districts, and postsecondary 
4.3 	institutions are encouraged to develop and offer an "introduction to teaching" or "introduction 
4.4 	to education" course under this subdivision.
4.5 	(c) Grant recipients must annually report to the commissioner in a form and manner 
4.6 	determined by the commissioner on the participation rates of students in courses under 
4.7 	paragraph (b), including the number of students who apply for admission to colleges or 
4.8 	universities with teacher preparation programs.

4.9 	Sec. 4. Minnesota Statutes 2016, section 136A.1791, is amended to read:
4.10 	136A.1791 TEACHER SHORTAGE LOAN FORGIVENESS PROGRAM.
4.11 		Subdivision 1.Definitions. (a) The terms used in this section have the meanings given 
4.12 	them in this subdivision.
4.13 	(b) "Qualified educational loan" means a government, commercial, or foundation loan 
4.14 	for actual costs paid for tuition and reasonable educational and living expenses related to a 
4.15 	teacher's preparation or further education.
4.16 	(c) "School district" means an independent school district, special school district, 
4.17 	intermediate district, education district, special education cooperative, service cooperative, 
4.18 	a cooperative center for vocational education, or a charter school located in Minnesota.
4.19 	(d) "Teacher" means an individual holding a teaching license issued by the licensing 
4.20 	division in the Department of Education on behalf of the Board of Teaching who is employed 
4.21 	by a school district to provide classroom instruction in a teacher shortage area.
4.22 	(e) "Teacher shortage area" means the licensure fields and, economic development 
4.23 	regions, and groups underrepresented in the teacher workforce as reported under section 
4.24 	127A.05, subdivision 6, reported by the commissioner of education as experiencing a teacher 
4.25 	shortage.
4.26 	(f) "Commissioner" means the commissioner of the Office of Higher Education unless 
4.27 	indicated otherwise.
4.28 		Subd. 2.Program established; administration. The commissioner shall establish and 
4.29 	administer a teacher shortage loan forgiveness program. A teacher is eligible for the program 
4.30 	if the teacher is teaching in a licensure field and with a shortage, in an economic development 
4.31 	region with an identified teacher shortage under subdivision 3, or identifies as belonging 
5.1 	to an underrepresented group in the teacher workforce as reported under section 127A.05, 
5.2 	subdivision 6, and complies with the requirements of this section.
5.3 		Subd. 3.Use of report on teacher shortage areas. The commissioner of education
5.4 	shall use the teacher supply and demand report to the legislature under section 127A.05, 
5.5 	subdivision 6, to identify the licensure fields and, economic development regions, and 
5.6 	underrepresented groups in Minnesota experiencing a teacher shortage.
5.7 		Subd. 4.Application for loan forgiveness. Each applicant for loan forgiveness, according 
5.8 	to rules adopted by the commissioner, shall:
5.9 	(1) apply for teacher shortage loan forgiveness and promptly submit any additional 
5.10 	information required by the commissioner; and
5.11 	(2) submit to the commissioner a completed affidavit, prescribed by the commissioner, 
5.12 	affirming the teacher is teaching in: (i) is teaching in a licensure field identified by the 
5.13 	commissioner as experiencing a teacher shortage; or (ii) is teaching in an economic 
5.14 	development region identified by the commissioner as experiencing a teacher shortage; or 
5.15 	(iii) identifies as belonging to a group underrepresented in the teacher workforce as reported 
5.16 	under section 127A.05, subdivision 6.
5.17 		Subd. 5.Amount of loan forgiveness. (a) To the extent funding is available, the annual 
5.18 	amount of teacher shortage loan forgiveness for an approved applicant shall not exceed 
5.19 	$1,000 $2,000 or the cumulative balance of the applicant's qualified educational loans, 
5.20 	including principal and interest, whichever amount is less.
5.21 	(b) Recipients must secure their own qualified educational loans. Teachers who graduate 
5.22 	from an approved teacher preparation program or teachers who add a licensure field, 
5.23 	consistent with the teacher shortage requirements of this section, are eligible to apply for 
5.24 	the loan forgiveness program.
5.25 	(c) No teacher shall receive more than five annual awards.
5.26 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements directly 
5.27 	to the participant of the amount for which a participant is eligible, for each year that a 
5.28 	participant is eligible.
5.29 	(b) Within 60 days of the disbursement date, the participant must provide the 
5.30 	commissioner with verification that the full amount of loan repayment disbursement has 
5.31 	been applied toward the designated loans. A participant that previously received funds under 
5.32 	this section but has not provided the commissioner with such verification is not eligible to 
5.33 	receive additional funds.
6.1 		Subd. 7.Penalties. (a) A teacher who submits a false or misleading application or other 
6.2 	false or misleading information to the commissioner may:
6.3 	(1) have his or her teaching license suspended or revoked under section 122A.20;
6.4 	(2) be disciplined by the teacher's employing school district; or
6.5 	(3) be required by the commissioner to repay the total amount of the loan forgiveness 
6.6 	he or she received under this program, plus interest at a rate established under section 
6.7 	270C.40.
6.8 	(b) The commissioner must deposit any repayments received under paragraph (a) in the 
6.9 	fund established in subdivision 8.
6.10 		Subd. 8.Fund established. A teacher shortage loan forgiveness repayment fund is 
6.11 	created for depositing money appropriated to or received by the commissioner for the 
6.12 	program. Money deposited in the fund shall not revert to any state fund at the end of any 
6.13 	fiscal year but remains in the loan forgiveness repayment fund and is continuously available 
6.14 	for loan forgiveness under this section.
6.15 		Subd. 9.Annual reporting. By February 1 of each year, the commissioner must report 
6.16 	to the chairs of the K-12 kindergarten through grade 12 and higher education committees 
6.17 	of the legislature on the number of individuals who received loan forgiveness under this 
6.18 	section, the licensure areas and economic development regions in which the teachers taught, 
6.19 	the number of teachers by racial and ethnic group, the average amount paid to a teacher 
6.20 	participating in the program, and other summary data identified by the commissioner as 
6.21 	outcome indicators.
6.22 		Subd. 10.Rulemaking. The commissioner shall adopt rules under chapter 14 to 
6.23 	administer this section.

6.24 	Sec. 5. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 12, 
6.25 	as amended by Laws 2016, chapter 189, article 25, section 47, is amended to read:
6.26 		Subd. 12.Collaborative urban educator and greater Minnesota educators of color 
6.27 	programs. (a) For the collaborative urban educator and greater Minnesota educators of 
6.28 	color grant program programs designed to address the wide gap between the demographics 
6.29 	of teachers and students. Grants are awarded to teacher preparation programs to develop, 
6.30 	expand, and maintain targeted recruitment, retention, and induction support directly to 
6.31 	teacher candidates who are of color or who are American Indian in collaboration with local 
6.32 	schools and communities:

7.1		$
	780,000
	.....
	2016
	
7.2		$
	1,090,000
	.....
	2017
	
7.3		$
	2,054,000
	.....
	2018
	
7.4 	(b) Grants shall be awarded in equal amounts: $272,500 $273,000 each year is for the 
7.5 	Southeast Asian Teacher program at Concordia University, St. Paul; $272,500 $273,000
7.6 	each year is for the Collaborative Urban Educator program at the University of St. Thomas; 
7.7 	$272,500 $273,000 each year is for the Center for Excellence in Urban Teaching at Hamline 
7.8 	University; and $272,500 $273,000 each year is for the East Africa Student to Teacher 
7.9 	program at Augsburg College.; $273,000 each year is for the Urban Teacher program at 
7.10 	Metropolitan State University; and $689,000 each year is for competitive grants for other 
7.11 	colleges and universities in Minnesota. Grant applications shall be made to the Department 
7.12 	of Education, which shall make award decisions. Grants may be used to provide financial 
7.13 	support to teacher candidates completing licensure programs but are intended to complement 
7.14 	scholarship and stipend programs created by the legislature for the purpose of addressing 
7.15 	the severe shortage of teachers in Minnesota who are of color or who are American Indian.
7.16 	(c) Any balance in the first year does not cancel but is available in the second year.
7.17 	(d) Each institution shall prepare for the legislature, by January 15 of each year, a detailed 
7.18 	report regarding the funds used to recruit, retain, and induct teacher candidates who are of 
7.19 	color or who are American Indian. The report must include the total number of teachers 
7.20 	prepared as well as the diversity for each cohort of teachers produced. teacher candidates 
7.21 	of color, broken down by race or ethnic group and by categories including those who: are 
7.22 	recruited to the institution, are newly admitted to the licensure program, are enrolled in the 
7.23 	licensure program, have completed student teaching, have graduated, and are licensed and 
7.24 	newly employed as Minnesota teachers in their licensure field. The total number of teacher 
7.25 	candidates who are of color or who are American Indian at each stage from recruitment to 
7.26 	licensed teaching must also be reported as a percentage of total candidates seeking the same 
7.27 	licensure at the institution. The report must also include the graduation rate for each cohort 
7.28 	of teacher candidates, the placement rate for each graduating cohort of teacher candidates, 
7.29 	and the retention rate for each graduating cohort of teacher candidates, among other program 
7.30 	outcomes.
7.31 	(e) The base appropriation for fiscal year 2018 and later is $780,000 $2,054,000. Grants 
7.32 	in fiscal year 2018 shall be awarded in equal amounts: $195,000$273,000 each year is for 
7.33 	the Southeast Asian Teacher program at Concordia University, St. Paul; $195,000 $273,000
7.34 	each year is for the Collaborative Urban Educator program at the University of St. Thomas; 
7.35 	$195,000 $273,000 each year is for the Center for Excellence in Urban Teaching at Hamline 
8.1 	University; and $195,000 $273,000 each year is for the East Africa Student to Teacher 
8.2 	program at Augsburg College.; $273,000 each year is for the Urban Teacher program at 
8.3 	Metropolitan State University; and $689,000 each year is for competitive grants for other 
8.4 	colleges and universities in Minnesota to develop, expand, and maintain targeted recruitment, 
8.5 	retention, and induction support directly to teacher candidates who are of color or who are 
8.6 	American Indian in collaboration with local schools and communities. For fiscal year 2021 
8.7 	and later, continuing grants shall be awarded only to programs at institutions that demonstrate 
8.8 	success at recruiting, retaining, and inducting teacher candidates who are of color or who 
8.9 	are American Indian, and award amounts for maintenance and expansion of programs shall 
8.10 	be determined by the commissioner based on numbers of candidates supported and funds 
8.11 	available from the base appropriation. Development of new, innovative programs shall 
8.12 	continue to be awarded competitive grants from the total appropriation as determined by 
8.13 	the commissioner, and subsequent funding shall be determined based on the same criteria 
8.14 	for continuing grants.
8.15 	(f) The department shall be allocated no more than five percent of the appropriation 
8.16 	amount for monitoring and administering the grant program.

8.17 	Sec. 6. Laws 2016, chapter 189, article 25, section 62, subdivision 5, is amended to read:
8.18 		Subd. 5.Paraprofessional pathway Expanded Grow Your Own pathways to teacher 
8.19 	licensure. (a) For grants to school districts for and charter schools throughout Minnesota 
8.20 	to develop or expand Grow Your Own new teacher programs involving paraprofessionals, 
8.21 	cultural liaisons, other nonlicensed employees, and secondary school students seeking initial 
8.22 	teacher licensure:

8.23		$
	1,500,000
	.....
	2017
	
8.24		$
	.......
	.....
	2018
	
8.25		$
	.......
	.....
	2019
	
8.26 	(b) The grants are for a first class city school district or any other school district with
8.27 	districts where more than 40 25 percent minority of students are students of color or who 
8.28 	are American Indian to provide financial assistance, mentoring, and experiences to enable 
8.29 	persons who are of color or who are American Indian and working or living in the local 
8.30 	community to become teachers. Districts or schools providing financial support may require 
8.31 	a commitment as determined by the district to teach in the district or school for a reasonable 
8.32 	amount of time that does not exceed five years. Grants may be used for:
8.33 	(1) tuition scholarships or stipends to eligible employees for teaching assistants or other 
8.34 	nonlicensed employees who are of color or who are American Indian;
9.1 	(2) a nonconventional teacher residency pilot program established under Minnesota 
9.2 	Statutes, section 122A.09, subdivision 10, paragraph (a). The program shall provide tuition 
9.3 	scholarships or stipends to enable education or teaching assistants or other nonlicensed 
9.4 	employees of a first class city school district or any other school district with more than 40 
9.5 	percent minority students who hold a bachelor's degree from an accredited college or 
9.6 	university and who seek an education license to participate in a Board of Teaching-approved 
9.7 	nonconventional teacher residency program under Minnesota Statutes, section 122A.09, 
9.8 	subdivision 10, paragraph (a). Any funds not awarded by June 1, 2017 2019, may be 
9.9 	reallocated among the remaining districts if the total cost of the program exceeds the original 
9.10 	allocation.; or
9.11 	(3) supporting the development of residency programs at any school or district in the 
9.12 	state where at least 25 percent of students are students of color or are American Indian for 
9.13 	prospective teachers of color or who are American Indian who seek an education license 
9.14 	to participate in a Board of Teaching-approved program under Minnesota Statutes, section 
9.15 	122A.09, subdivision 10, paragraph (a).
9.16 	(c) School districts and charter schools may also apply for grants to develop innovative 
9.17 	expanded Grow Your Own programs that encourage secondary school students to pursue 
9.18 	teaching, including:
9.19 	(1) developing and supporting future teacher clubs focused on encouraging middle and 
9.20 	high school students who are of color or who are American Indian to have experiential 
9.21 	learning, support the success of younger students, and pursue a teaching career; and
9.22 	(2) developing and offering dual-credit postsecondary course options in schools for 
9.23 	"introduction to teaching" or "introduction to education" courses consistent with Minnesota 
9.24 	Statutes, section 124D.09, subdivision 10.
9.25 	(d) Programs must annually report to the commissioner by the date determined by the 
9.26 	commissioner on their activities under this section, including the number of participants, 
9.27 	the percentage of participants who are of color or who are American Indian, and an 
9.28 	assessment of program effectiveness, including participant feedback, areas for improvement, 
9.29 	the percentage of participants continuing to pursue teacher licensure, and the number of 
9.30 	participants hired in the school or district as teachers after completing preparation programs.
9.31 	(e) The department shall be allocated no more than five percent of the appropriation 
9.32 	amount for monitoring and administering the grant program.
9.33 	(f) The base in fiscal year 2018 2020 is $1,000,000 $.......

10.1 	Sec. 7. APPROPRIATIONS.
 10.2 		Subdivision 1.Department of Education. The sums indicated in this section are 
10.3 	appropriated from the general fund to the Department of Education for the fiscal years 
10.4 	designated.
10.5 		Subd. 2.American Indian teacher preparation grants. For joint grants to assist 
10.6 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

10.7		$
	600,000
	.....
	2018
	
10.8		$
	600,000
	.....
	2019
	
10.9 		Subd. 3.Expanded concurrent enrollment grants. For grants to institutions offering 
10.10 	"introduction to teaching" or "introduction to education" college in the schools courses 
10.11 	under Minnesota Statutes, section 124D.09, subdivision 10, paragraph (b):

10.12		$
	.......
	.....
	2018
	
10.13		$
	.......
	.....
	2019
	
10.14 	The department shall be allocated no more than five percent of the appropriation amount 
10.15 	for monitoring and administering the grant program.
10.16 		Subd. 4.Mentoring, induction, and retention incentive program grants for teachers 
10.17 	of color. (a) For the development and expansion of mentoring and induction programs for 
10.18 	teachers of color or who are American Indian under Minnesota Statutes, section 122A.70:

10.19		$
	.......
	.....
	2018
	
10.20		$
	.......
	.....
	2019
	
10.21 	(b) Grant recipients must submit by June 30 of each year after receiving a grant a report 
10.22 	to the Board of Teaching and the commissioner on program efforts that describes mentoring 
10.23 	and induction activities and assesses the impact of these programs on teacher effectiveness 
10.24 	and retention.
10.25 	(c) The department shall be allocated no more than five percent of the appropriation 
10.26 	amount for monitoring and administering the grant program.
10.27 	(d) The base appropriation for fiscal year 2020 and later is $........
10.28 		Subd. 5.Teacher shortage loan forgiveness. For the loan forgiveness program under 
10.29 	Minnesota Statutes, section 136A.1791:

11.1		$
	2,500,000
	.....
	2018
	
11.2 	The commissioner may use no more than five percent of the appropriation amount to 
11.3 	administer the program under this subdivision. The base appropriation for fiscal year 2019 
11.4 	and later is $2,500,000.