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123B.05 CONTRACT DEADLINE AND PENALTY.
    Subdivision 1. Definitions. The following definitions apply to this section.
(1) "Public employer" means:
(i) a district; and
(ii) a public employer, as defined by section 179A.03, subdivision 15, other than a district
that (i) negotiates a contract under chapter 179A with teachers, and (ii) is established by, receives
state money, or levies under chapters 120A to 129C, or 136D, or 268A.
(2) "Teacher" means a person, other than a superintendent or assistant superintendent,
principal, assistant principal, or a supervisor or confidential employee who occupies a position for
which the person must be licensed by the Board of Teaching, commissioner of education, the
former Board of Technical Colleges, or the Board of Trustees of the Minnesota State Colleges
and Universities.
    Subd. 2. Contract deadline date; state aid penalty. Notwithstanding any law to the
contrary, a public employer and the exclusive representative of the teachers must both sign a
collective bargaining agreement on or before January 15 of an even-numbered calendar year. If a
collective bargaining agreement is not signed by that date, state aid paid to the public employer
for that fiscal year must be reduced. However, state aid must not be reduced if:
(1) a public employer and the exclusive representative of the teachers have submitted all
unresolved contract items to interest arbitration according to section 179A.16 before December
31 of an odd-numbered year and filed required final positions on all unresolved items with the
commissioner of mediation services before January 15 of an even-numbered year; and
(2) the arbitration panel has issued its decision within 60 days after the date the final
positions were filed.
    Subd. 3. State aid penalty exemptions. (a) For a district that reorganizes according to
section 123A.46, 123A.48, or sections 123A.35 to 123A.43 effective July 1 of an odd-numbered
year, state aid must not be reduced according to this section if the board and the exclusive
representative of the teachers both sign a collective bargaining agreement on or before the March
15 following the effective date of reorganization.
(b) For a district that jointly negotiates a contract before the effective date of reorganization
under section 123A.46, 123A.48, or sections 123A.35 to 123A.43 that, for the first time, includes
teachers in all districts to be reorganized, state aid must not be reduced according to this section if
the board and the exclusive representative of the teachers sign a collective bargaining agreement
on or before the March 15 following the expiration of the teacher contracts in each district
involved in the joint negotiation.
(c) Only one extension of the contract deadline is available to a district under this subdivision.
    Subd. 4. Calculation of state aid reduction. (a) The reduction must equal $25 times the
number of adjusted pupil units:
(1) for a district, that are in the district during that fiscal year; or
(2) for a public employer other than a district, that are in programs provided by the employer
during the preceding fiscal year.
(b) The department must determine the number of full-time equivalent resident pupil units
in the programs. The department must reduce general education aid; if general education aid is
insufficient or not paid, the department must reduce other state aids.
    Subd. 5. State aid reductions returned to general fund. Reductions from aid to districts
and public employers other than districts must be returned to the general fund.
History: 1987 c 398 art 1 s 11; 1988 c 486 s 58-60; 1988 c 718 art 1 s 1-3; 1989 c 329 art 1
s 5-12; 1990 c 375 s 3; 1990 c 562 art 8 s 28; 1991 c 130 s 37; 1991 c 265 art 1 s 12-19; 1992 c
499 art 6 s 20; art 12 s 13,14,29; 1993 c 224 art 1 s 12-17; 1993 c 374 s 2; 1994 c 647 art 1 s
21-24; 1995 c 212 art 4 s 64; 1Sp1995 c 3 art 1 s 25-44; art 13 s 7; art 16 s 13; 1996 c 412 art 1
s 23-25; art 9 s 6; 1997 c 1 s 4; 1997 c 2 s 6; 1Sp1997 c 4 art 1 s 36-45; art 4 s 22,23; 1998 c
397 art 7 s 145-151,164; art 11 s 3; art 12 s 3-5; 1998 c 398 art 1 s 28-31; art 4 s 8; art 5 s 55;
1Sp1998 c 3 s 17; 2003 c 130 s 12

Official Publication of the State of Minnesota
Revisor of Statutes