1.1                          A bill for an act 
  1.2             relating to education; providing for a qualified 
  1.3             economic offer in teacher contracts; amending 
  1.4             Minnesota Statutes 1998, sections 122A.40, by adding a 
  1.5             subdivision; and 122A.41, by adding a subdivision.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 122A.40, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 3a.  [QUALIFIED ECONOMIC OFFER.] (a) Notwithstanding 
  1.10  any law to the contrary, if a school board offers teachers a 
  1.11  biennial contract that includes a percentage increase in total 
  1.12  compensation at least equal to the percentage increase in the 
  1.13  general education formula for the first year of that contract, 
  1.14  the teachers may not strike for any issue relating to the total 
  1.15  compensation for the years covered by that contract or submit 
  1.16  any issue relating to the total compensation to interest 
  1.17  arbitration under section 179A.16.  However, the teachers may 
  1.18  strike for noncompensation issues as provided in section 
  1.19  179A.18, subdivision 2, or submit noncompensation issues to 
  1.20  interest arbitration under section 179A.16. 
  1.21     (b) If a school board and teachers do not agree on the 
  1.22  allocation of the total compensation offered by the board under 
  1.23  paragraph (a) on or before January 15 of an even-numbered 
  1.24  calendar year as required for collective bargaining agreements 
  1.25  under section 123B.05, subdivision 2, the allocation of total 
  2.1   compensation among the teachers shall be as follows: 
  2.2      (1) existing employee benefits must continue at the same 
  2.3   percentage of the total compensation and in the same manner as 
  2.4   provided in the teachers' immediately preceding employment 
  2.5   contract; and 
  2.6      (2) the remaining percentage of the total compensation is 
  2.7   for increases in teacher salary based on first, the number of 
  2.8   years of service, and second, promotion and advanced education. 
  2.9      (c) For the purposes of this subdivision, the following 
  2.10  terms have the meanings given them. 
  2.11     (1) "Teachers" means classroom teachers, principals, and 
  2.12  supervisors licensed under section 122A.18. 
  2.13     (2) "Total compensation" means salaries and employee 
  2.14  benefits including paid time off, group insurance benefits, 
  2.15  retirement plans, and other direct and indirect items of 
  2.16  compensation. 
  2.17     Sec. 2.  Minnesota Statutes 1998, section 122A.41, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 2a.  [QUALIFIED ECONOMIC OFFER.] (a) Notwithstanding 
  2.20  any law to the contrary, if a school board offers teachers a 
  2.21  biennial contract that includes a percentage increase in total 
  2.22  compensation at least equal to the percentage increase in the 
  2.23  general education formula for the first year of that contract, 
  2.24  the teachers may not strike for any issue relating to the total 
  2.25  compensation for the years covered by that contract or submit 
  2.26  any issue relating to the total compensation to interest 
  2.27  arbitration under section 179A.16.  However, the teachers may 
  2.28  strike for noncompensation issues as provided in section 
  2.29  179A.18, subdivision 2, or submit noncompensation issues to 
  2.30  interest arbitration under section 179A.16. 
  2.31     (b) If a school board and teachers do not agree on the 
  2.32  allocation of the total compensation offered by the board under 
  2.33  paragraph (a) on or before January 15 of an even-numbered 
  2.34  calendar year as required for collective bargaining agreements 
  2.35  under section 123B.05, subdivision 2, the allocation of total 
  2.36  compensation among the teachers shall be as follows: 
  3.1      (1) existing employee benefits must continue at the same 
  3.2   percentage of the total compensation and in the same manner as 
  3.3   provided in the teachers' immediately preceding employment 
  3.4   contract; and 
  3.5      (2) the remaining percentage of the total compensation is 
  3.6   for increases in teacher salary based on first, the number of 
  3.7   years of service, and second, promotion and advanced education. 
  3.8      (c) For the purposes of this subdivision, the following 
  3.9   terms have the meanings given them. 
  3.10     (1) "Teachers" means classroom teachers, principals, and 
  3.11  supervisors licensed under section 122A.18. 
  3.12     (2) "Total compensation" means salaries and employee 
  3.13  benefits including paid time off, group insurance benefits, 
  3.14  retirement plans, and other direct and indirect items of 
  3.15  compensation. 
  3.16     Sec. 3.  [EFFECTIVE DATE.] 
  3.17     Sections 1 and 2 are effective for contracts entered into 
  3.18  on or after July 1, 2001.