1.1 	A bill for an act
1.2 	relating to education; providing for a performance-based pay system for teachers; 
1.3 	appropriating money;amending Minnesota Statutes 2014, section 126C.10, by 
1.4 	adding subdivisions; Minnesota Statutes 2015 Supplement, sections 122A.40, 
1.5 	subdivision 8; 122A.41, subdivision 5; 124E.12, by adding a subdivision; 
1.6 	124E.20, subdivision 1; 126C.10, subdivision 1; 126C.13, subdivision 4; 
1.7 	proposing coding for new law in Minnesota Statutes, chapter 136D; repealing 
1.8 	Minnesota Statutes 2014, sections 122A.413, subdivision 3; 122A.414, 
1.9 	subdivision 4; 122A.4144; 122A.4155; 122A.416; Minnesota Statutes 2015 
1.10 	Supplement, sections 122A.413, subdivisions 1, 2; 122A.414, subdivisions 1, 
1.11 	1a, 2, 2a, 2b, 3; 122A.415, subdivisions 1, 3, 4, 5, 6.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2015 Supplement, section 122A.40, subdivision 8, 
1.14 	is amended to read:
1.15 		Subd. 8.Development, evaluation, ~~and~~ peer coaching ~~for continuing contract~~ 
1.16 	~~teachers~~, and performance-linked pay. (a) To improve student learning and success and 
1.17 	to support teachers' roles in improving students' educational achievement, a school board 
1.18 	and an exclusive representative of the teachers in the district, consistent with paragraph 
1.19 	(b), may develop a teacher evaluation and peer review process for probationary and 
1.20 	continuing contract teachers through joint agreement and, consistent with paragraph (e), 
1.21 	may develop a performance pay system. If a school board and the exclusive representative 
1.22 	of the teachers do not agree to an annual teacher evaluation and peer review process, then 
1.23 	the school board and the exclusive representative of the teachers must implement the state 
1.24 	teacher evaluation plan under paragraph (c). The process must include having trained 
1.25 	observers serve as peer coaches or having teachers participate in professional learning 
1.26 	communities, consistent with paragraph (b).
2.1 	(b) To develop, improve, and support qualified teachers and effective teaching 
2.2 	practices and improve student learning and success, the annual evaluation process for 
2.3 	teachers:
2.4 	(1) must, for probationary teachers, provide for all evaluations required under 
2.5 	subdivision 5;
2.6 	(2) must establish a three-year professional review cycle for each teacher that 
2.7 	includes an individual growth and development plan, a peer review process, and at least 
2.8 	one summative evaluation performed by a qualified and trained evaluator such as a school 
2.9 	administrator. For the years when a tenured teacher is not evaluated by a qualified and 
2.10 	trained evaluator, the teacher must be evaluated by a peer review;
2.11 	(3) must be based on professional teaching standards established in rule;
2.12 	(4) must coordinate staff development activities under sections 122A.60 and 
2.13 	122A.61 with this evaluation process and teachers' evaluation outcomes;
2.14 	(5) may provide time during the school day and school year for peer coaching and 
2.15 	teacher collaboration;
2.16 	(6) may include job-embedded learning opportunities such as professional learning 
2.17 	communities;
2.18 	(7) may include mentoring and induction programs;
2.19 	(8) must include an option for teachers to develop and present a portfolio 
2.20 	demonstrating evidence of reflection and professional growth, consistent with section 
2.21 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
2.22 	based on student work samples and examples of teachers' work, which may include video 
2.23 	among other activities for the summative evaluation;
2.24 	(9) must use data from valid and reliable assessments aligned to state and local 
2.25 	academic standards and must use state and local measures of student growth and literacy 
2.26 	that may include value-added models or student learning goals to determine 35 percent of 
2.27 	teacher evaluation results;
2.28 	(10) must use longitudinal data on student engagement and connection, and other 
2.29 	student outcome measures explicitly aligned with the elements of curriculum for which 
2.30 	teachers are responsible, including academic literacy, oral academic language, and 
2.31 	achievement of content areas of English learners;
2.32 	(11) must require qualified and trained evaluators such as school administrators to 
2.33 	perform summative evaluations and ensure school districts and charter schools provide for 
2.34 	effective evaluator training specific to teacher development and evaluation;
3.1 	(12) must give teachers not meeting professional teaching standards under clauses 
3.2 	(3) through (11) support to improve through a teacher improvement process that includes 
3.3 	established goals and timelines; and
3.4 	(13) must discipline a teacher for not making adequate progress in the teacher 
3.5 	improvement process under clause (12) that may include a last chance warning, 
3.6 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
3.7 	other discipline a school administrator determines is appropriate.
3.8 	Data on individual teachers generated under this subdivision are personnel data 
3.9 	under section 13.43. The observation and interview notes of peer coaches may only be 
3.10 	disclosed to other school officials with the consent of the teacher being coached.
3.11 	(c) The department, in consultation with parents who may represent parent 
3.12 	organizations and teacher and administrator representatives appointed by their respective 
3.13 	organizations, representing the Board of Teaching, the Minnesota Association of School 
3.14 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
3.15 	and Secondary Principals Associations, Education Minnesota, and representatives of 
3.16 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
3.17 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
3.18 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
3.19 	with the requirements in paragraph (b) and applies to all teachers under this section and 
3.20 	section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 
3.21 	evaluation and peer review process. The teacher evaluation process created under this 
3.22 	subdivision does not create additional due process rights for probationary teachers under 
3.23 	subdivision 5.
3.24 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
3.25 	(1) for students in kindergarten through grade 4, a school administrator must not 
3.26 	place or approve the placement of a student in the classroom of a teacher who is in the 
3.27 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
3.28 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
3.29 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
3.30 	teaches that grade; and
3.31 	(2) for students in grades 5 through 12, a school administrator must not place 
3.32 	or approve the placement of a student in the classroom of a teacher who is in the 
3.33 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
3.34 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
3.35 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
3.36 	teaches that subject area and grade.
4.1 	All data created and used under this paragraph retains its classification under chapter 13.
4.2 	(e) To provide incentives to encourage teachers to improve their knowledge and 
4.3 	instructional skills to improve student learning and for school districts to recruit and retain 
4.4 	qualified teachers and encourage qualified teachers to undertake challenging assignments, 
4.5 	the performance pay system must, consistent with paragraph (b):
4.6 	(1) identify assessment and evaluation tools to measure student performance and 
4.7 	progress;
4.8 	(2) establish performance goals and benchmarks for improvement;
4.9 	(3) describe how teachers can achieve career advancement and additional 
4.10 	compensation;
4.11 	(4) describe how the school district will provide teachers with career advancement 
4.12 	options that allow teachers to retain primary roles in student instruction and facilitate 
4.13 	site-focused professional development that helps other teachers improve their skills;
4.14 	(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
4.15 	paid before implementing the pay system from being reduced as a result of participating 
4.16 	in this system, and base all compensation increases while the performance pay system 
4.17 	is in place on teacher performance; and
4.18 	(6) be negotiated and adopted according to the Public Employment Labor Relations 
4.19 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
4.20 	district may enter into a contract for a term of two or four years.
4.21 	(f) Notwithstanding section 179A.20 or other law to the contrary, a school board and 
4.22 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
4.23 	agreement for the purpose of entering into a performance pay system agreement under 
4.24 	paragraph (e). Negotiations for a contract reopened under this section must be limited to 
4.25 	issues related to the performance pay system.

4.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.27 	and applies to the 2016-2017 school year and later.

4.28 	Sec. 2. Minnesota Statutes 2015 Supplement, section 122A.41, subdivision 5, is 
4.29 	amended to read:
4.30 		Subd. 5.Development, evaluation, ~~and~~ peer coaching ~~for continuing contract~~ 
4.31 	~~teachers~~, and performance-linked pay. (a) To improve student learning and success and 
4.32 	to support teachers' roles in improving students' educational achievement, a school board 
4.33 	and an exclusive representative of the teachers in the district, consistent with paragraph 
4.34 	(b), may develop an annual teacher evaluation and peer review process for probationary 
4.35 	and nonprobationary teachers through joint agreement and consistent with paragraph (e), 
5.1 	may develop a performance pay system. If a school board and the exclusive representative 
5.2 	of the teachers in the district do not agree to an annual teacher evaluation and peer review 
5.3 	process, then the school board and the exclusive representative of the teachers must 
5.4 	implement the state teacher evaluation plan developed under paragraph (c). The process 
5.5 	must include having trained observers serve as peer coaches or having teachers participate 
5.6 	in professional learning communities, consistent with paragraph (b).
5.7 	(b) To develop, improve, and support qualified teachers and effective teaching 
5.8 	practices and improve student learning and success, the annual evaluation process for 
5.9 	teachers:
5.10 	(1) must, for probationary teachers, provide for all evaluations required under 
5.11 	subdivision 2;
5.12 	(2) must establish a three-year professional review cycle for each teacher that 
5.13 	includes an individual growth and development plan, a peer review process, and at least 
5.14 	one summative evaluation performed by a qualified and trained evaluator such as a school 
5.15 	administrator;
5.16 	(3) must be based on professional teaching standards established in rule;
5.17 	(4) must coordinate staff development activities under sections 122A.60 and 
5.18 	122A.61 with this evaluation process and teachers' evaluation outcomes;
5.19 	(5) may provide time during the school day and school year for peer coaching and 
5.20 	teacher collaboration;
5.21 	(6) may include job-embedded learning opportunities such as professional learning 
5.22 	communities;
5.23 	(7) may include mentoring and induction programs;
5.24 	(8) must include an option for teachers to develop and present a portfolio 
5.25 	demonstrating evidence of reflection and professional growth, consistent with section 
5.26 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
5.27 	based on student work samples and examples of teachers' work, which may include video 
5.28 	among other activities for the summative evaluation;
5.29 	(9) must use data from valid and reliable assessments aligned to state and local 
5.30 	academic standards and must use state and local measures of student growth and literacy 
5.31 	that may include value-added models or student learning goals to determine 35 percent of 
5.32 	teacher evaluation results;
5.33 	(10) must use longitudinal data on student engagement and connection and other 
5.34 	student outcome measures explicitly aligned with the elements of curriculum for which 
5.35 	teachers are responsible, including academic literacy, oral academic language, and 
5.36 	achievement of English learners;
6.1 	(11) must require qualified and trained evaluators such as school administrators to 
6.2 	perform summative evaluations and ensure school districts and charter schools provide for 
6.3 	effective evaluator training specific to teacher development and evaluation;
6.4 	(12) must give teachers not meeting professional teaching standards under clauses 
6.5 	(3) through (11) support to improve through a teacher improvement process that includes 
6.6 	established goals and timelines; and
6.7 	(13) must discipline a teacher for not making adequate progress in the teacher 
6.8 	improvement process under clause (12) that may include a last chance warning, 
6.9 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
6.10 	other discipline a school administrator determines is appropriate.
6.11 	Data on individual teachers generated under this subdivision are personnel data 
6.12 	under section 13.43. The observation and interview notes of peer coaches may only be 
6.13 	disclosed to other school officials with the consent of the teacher being coached.
6.14 	(c) The department, in consultation with parents who may represent parent 
6.15 	organizations and teacher and administrator representatives appointed by their respective 
6.16 	organizations, representing the Board of Teaching, the Minnesota Association of School 
6.17 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
6.18 	and Secondary Principals Associations, Education Minnesota, and representatives of 
6.19 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
6.20 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
6.21 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
6.22 	with the requirements in paragraph (b) and applies to all teachers under this section and 
6.23 	section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 
6.24 	evaluation and peer review process. The teacher evaluation process created under this 
6.25 	subdivision does not create additional due process rights for probationary teachers under 
6.26 	subdivision 2.
6.27 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
6.28 	(1) for students in kindergarten through grade 4, a school administrator must not 
6.29 	place or approve the placement of a student in the classroom of a teacher who is in the 
6.30 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
6.31 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
6.32 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
6.33 	teaches that grade; and
6.34 	(2) for students in grades 5 through 12, a school administrator must not place 
6.35 	or approve the placement of a student in the classroom of a teacher who is in the 
6.36 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
7.1 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
7.2 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
7.3 	teaches that subject area and grade.
7.4 	All data created and used under this paragraph retains its classification under chapter 13.
7.5 	(e) To provide incentives to encourage teachers to improve their knowledge and 
7.6 	instructional skills to improve student learning and for school districts to recruit and retain 
7.7 	qualified teachers and encourage qualified teachers to undertake challenging assignments, 
7.8 	the performance pay system must, consistent with paragraph (b):
7.9 	(1) identify assessment and evaluation tools to measure student performance and 
7.10 	progress;
7.11 	(2) establish performance goals and benchmarks for improvement;
7.12 	(3) describe how teachers can achieve career advancement and additional 
7.13 	compensation;
7.14 	(4) describe how the school district will provide teachers with career advancement 
7.15 	options that allow teachers to retain primary roles in student instruction and facilitate 
7.16 	site-focused professional development that helps other teachers improve their skills;
7.17 	(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
7.18 	paid before implementing the pay system from being reduced as a result of participating 
7.19 	in this system, and base all compensation increases while the performance pay system 
7.20 	is in place on teacher performance; and
7.21 	(6) be negotiated and adopted according to the Public Employment Labor Relations 
7.22 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
7.23 	district may enter into a contract for a term of two or four years.
7.24 	(f) Notwithstanding section 179A.20 or other law to the contrary, a school board and 
7.25 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
7.26 	agreement for the purpose of entering into a performance pay system agreement under 
7.27 	paragraph (e). Negotiations for a contract reopened under this section must be limited to 
7.28 	issues related to the performance pay system.

7.29 	EFFECTIVE DATE. This section is effective the day following final enactment 
7.30 	and applies to the 2016-2017 school year and later.

7.31 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.12, is amended by adding a 
7.32 	subdivision to read:
7.33 		Subd. 7. Performance pay for charter schools. To provide incentives to 
7.34 	encourage teachers to improve their knowledge and instructional skills to improve student 
8.1 	learning and for charter schools to recruit and retain qualified teachers and encourage 
8.2 	qualified teachers to undertake challenging assignments, a charter school may develop a 
8.3 	performance pay system. If developed, the performance pay system must:
8.4 	(1) include the elements in section 122A.40, subdivision 8, paragraph (e), clauses 
8.5 	(1) to (5);
8.6 	(2) if governed by a collective bargaining agreement, comply with section 122A.40, 
8.7 	subdivision 8, paragraph (e), clause (6);
8.8 	(3) be adopted by the charter school board of directors adopting the agreement; and
8.9 	(4) be approved by a formal vote of the teachers employed at the charter school 
8.10 	indicating that at least 70 percent of all teachers agree to implement the performance pay 
8.11 	system unless the charter school submits a performance pay system agreement under this 
8.12 	subdivision before the first year of operation.

8.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
8.14 	and applies to the 2016-2017 school year and later.

8.15 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.20, subdivision 1, is 
8.16 	amended to read:
8.17 		Subdivision 1.Revenue calculation. (a) General education revenue must be paid 
8.18 	to a charter school as though it were a district. The general education revenue for each 
8.19 	adjusted pupil unit is the state average general education revenue per pupil unit, plus the 
8.20 	referendum equalization aid allowance in the pupil's district of residence, minus an amount 
8.21 	equal to the product of the formula allowance according to section 126C.10, subdivision 
8.22 	2, times .0466, calculated without declining enrollment revenue, local optional revenue, 
8.23 	basic skills revenue, extended time revenue, pension adjustment revenue, evaluation 
8.24 	and performance revenue, transition revenue, and transportation sparsity revenue, plus 
8.25 	declining enrollment revenue, basic skills revenue, pension adjustment revenue, evaluation 
8.26 	and performance aid according to section 126C.10, subdivision 39, and transition revenue 
8.27 	as though the school were a school district.
8.28 	(b) For a charter school operating an extended day, extended week, or summer 
8.29 	program, the general education revenue in paragraph (a) is increased by an amount equal 
8.30 	to 25 percent of the statewide average extended time revenue per adjusted pupil unit.
8.31 	(c) Notwithstanding paragraph (a), the general education revenue for an eligible 
8.32 	special education charter school as defined in section 124E.21, subdivision 2, equals the 
8.33 	sum of the amount determined under paragraph (a) and the school's unreimbursed cost as 
8.34 	defined in section 124E.21, subdivision 2, for educating students not eligible for special 
8.35 	education services.

9.1 	Sec. 5. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 1, is 
9.2 	amended to read:
9.3 		Subdivision 1.General education revenue.  The general education revenue for 
9.4 	each district equals the sum of the district's basic revenue, extended time revenue, gifted 
9.5 	and talented revenue, declining enrollment revenue, local optional revenue, small schools 
9.6 	revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue, 
9.7 	transportation sparsity revenue, total operating capital revenue, equity revenue, pension 
9.8 	adjustment revenue, evaluation and performance revenue, and transition revenue.

9.9 	Sec. 6. Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision 
9.10 	to read:
9.11 		Subd. 38. Evaluation and performance revenue. (a) For fiscal year 2017 and later, 
9.12 	evaluation and performance revenue for a school district or charter school in which the 
9.13 	school board, intermediate school board, or charter school board of directors (1) notified 
9.14 	the commissioner by October 1 of the previous fiscal year of the district's or charter 
9.15 	school's intention to implement a performance plan under section 122A.40, subdivision 8, 
9.16 	paragraph (e); 122A.41, subdivision 5, paragraph (e); 136D.02; or 124E.12, subdivision 
9.17 	7, and (2) certifies to the commissioner by October 1 of that fiscal year that the district, 
9.18 	intermediate district, or charter school has implemented the performance plan, equals $260 
9.19 	times the number of pupils enrolled at the district or site on October 1 of the previous 
9.20 	fiscal year. Of this amount, ... percent must be reserved for compensation increases 
9.21 	consistent with the adopted performance plan.
9.22 	(b) For fiscal year 2017 and later, evaluation and performance revenue for a school 
9.23 	district or charter school not receiving revenue under paragraph (a) is equal to $....... times 
9.24 	the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.
9.25 	(c) Evaluation and performance revenue for an intermediate school district equals 
9.26 	the basic evaluation and performance aid for an intermediate school district calculated 
9.27 	under subdivision 39.
9.28 	(d) Notwithstanding paragraphs (a), (b), and (c), the evaluation and performance 
9.29 	revenue for a school district, intermediate school district, or charter school receiving 
9.30 	revenue under section 122A.415 for the current school year equals $0.
9.31 	(e) For a newly combined or consolidated district, the revenue shall be computed 
9.32 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
9.33 	into the combination or consolidation. The commissioner may adjust the revenue computed 
9.34 	for a site using prior year data to reflect changes attributable to school closings, school 
9.35 	openings, or grade level reconfigurations between the prior year and the current year.
10.1 	(f) For a charter school in the first year of operation, the revenue shall be computed 
10.2 	using the number of pupils enrolled on October 1 of the current year.

10.3 	Sec. 7. Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision 
10.4 	to read:
10.5 		Subd. 39. Basic evaluation and performance aid. For fiscal year 2017 and 
10.6 	later, the basic evaluation and performance aid equals 65 percent of the evaluation and 
10.7 	performance revenue under subdivision 38. The basic evaluation and performance aid 
10.8 	for an intermediate school district equals $260 times the number of pupils enrolled in the 
10.9 	school on October 1 of the previous year times the ratio of the sum of the evaluation and 
10.10 	performance aid and evaluation and performance levy for all participating school districts 
10.11 	to the maximum evaluation and performance revenue for those districts under subdivision 
10.12 	38. The basic evaluation and performance aid for a charter school equals the evaluation 
10.13 	and performance revenue under subdivision 38.

10.14 	Sec. 8. Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision 
10.15 	to read:
10.16 		Subd. 40. Evaluation and performance levy. For fiscal year 2017 and later, 
10.17 	the evaluation and performance levy for a school district equals the product of (1) the 
10.18 	difference between the district's evaluation and performance revenue and the district's 
10.19 	basic evaluation and performance aid, times (2) the lesser of one or the ratio of the 
10.20 	district's adjusted net tax capacity per adjusted pupil unit to $6,100.

10.21 	Sec. 9. Minnesota Statutes 2014, section 126C.10, is amended by adding a subdivision 
10.22 	to read:
10.23 		Subd. 41. Evaluation and performance equalization aid. (a) For fiscal year 2017 
10.24 	and later, a district's evaluation and performance equalization aid equals the district's 
10.25 	evaluation and performance revenue minus the district's basic evaluation and performance 
10.26 	aid minus the district's evaluation and performance levy. If a district does not levy the 
10.27 	entire amount permitted, the evaluation and performance equalization aid must be reduced 
10.28 	in proportion to the actual amount levied.
10.29 	(b) A district's evaluation and performance aid equals the sum of the district's basic 
10.30 	evaluation and performance aid and the district's evaluation and performance equalization 
10.31 	aid.

11.1 	Sec. 10. Minnesota Statutes 2015 Supplement, section 126C.13, subdivision 4, is 
11.2 	amended to read:
11.3 		Subd. 4.General education aid.  For fiscal year 2015 and later, a district's general 
11.4 	education aid equals:
11.5 	(1) general education revenue, excluding operating capital revenue, equity revenue, 
11.6 	local optional revenue, evaluation and performance revenue, and transition revenue, minus 
11.7 	the student achievement levy, multiplied times the ratio of the actual amount of student 
11.8 	achievement levy levied to the permitted student achievement levy; plus
11.9 	(2) operating capital aid under section 126C.10, subdivision 13b;
11.10 	(3) equity aid under section 126C.10, subdivision 30; plus
11.11 	(4) transition aid under section 126C.10, subdivision 33; plus
11.12 	(5) shared time aid under section 126C.10, subdivision 7; plus
11.13 	(6) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
11.14 	(7) online learning aid under section 124D.096; plus
11.15 	(8) local optional aid according to section 126C.10, subdivision 2d, paragraph (d)~~.~~; 
11.16 	plus
11.17 	(9) evaluation and performance aid according to section 126C.10, subdivision 41, 
11.18 	paragraph (b).

11.19 	Sec. 11. [136D.02] PERFORMANCE PAY SYSTEM.
11.20 	To provide incentives to encourage teachers to improve their knowledge and 
11.21 	instructional skills to improve student learning and for intermediate school districts 
11.22 	to recruit and retain qualified teachers and encourage qualified teachers to undertake 
11.23 	challenging assignments, an intermediate school district may develop a performance pay 
11.24 	system. If developed, the performance pay system must include the elements in section 
11.25 	122A.40, subdivision 8, paragraph (e).

11.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
11.27 	and applies to the 2016-2017 school year and later.

11.28 	Sec. 12. APPROPRIATION.
 11.29 		Subdivision 1. Department of Education. The sums indicated in this section are 
11.30 	appropriated from the general fund to the commissioner of education for the fiscal years 
11.31 	designated.
12.1 		Subd. 2. Evaluation and performance aid. For basic evaluation and performance 
12.2 	aid under Minnesota Statutes, section 126C.10, subdivision 39, and evaluation and 
12.3 	performance equalization aid under Minnesota Statutes, section 126C.10, subdivision 41:

12.4 | | $ | ....... | ..... | 2017
12.5 | | $ | ....... | ..... | 2018
12.6 	The 2017 appropriation includes $....... for 2017.
12.7 	The 2018 appropriation includes $....... for 2017 and $....... for 2018.

12.8 	Sec. 13.  REPEALER.
 12.9 	(a) Minnesota Statutes 2014, sections 122A.413, subdivision 3; 122A.414, 
12.10 	subdivision 4; 122A.4144; 122A.4155; and 122A.416, are repealed, effective for the 
12.11 	2018-2019 school year and later.
12.12 	(b) Minnesota Statutes 2015 Supplement, sections 122A.413, subdivisions 1 and 2; 
12.13 	122A.414, subdivisions 1, 1a, 2, 2a, 2b, and 3; and 122A.415, subdivisions 1, 3, 4, 5, and 
12.14 	6, are repealed, effective for the 2018-2019 school year and later.