Bill Text: MN HF2271 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Teachers; performance-based pay system provided.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2014-03-19 - Committee report, to adopt as amended and re-refer to Education Finance [HF2271 Detail]
Download: Minnesota-2013-HF2271-Engrossed.html
1.2relating to education; providing for a performance-based pay system for teachers;
1.3amending Minnesota Statutes 2012, sections 124D.10, by adding a subdivision;
1.4126C.10, by adding subdivisions; Minnesota Statutes 2013 Supplement, sections
1.5122A.40, subdivision 8; 122A.41, subdivision 5; 124D.11, subdivision 1;
1.6126C.10, subdivision 1; 126C.13, subdivision 4; proposing coding for new law in
1.7Minnesota Statutes, chapter 136D; repealing Minnesota Statutes 2012, sections
1.8122A.413; 122A.414; 122A.4144; 122A.415, subdivisions 1, 3; 122A.4155;
1.9122A.416; Minnesota Statutes 2013 Supplement, section 122A.415, subdivisions
1.104, 5, 6.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8,
1.13is amended to read:
1.14 Subd. 8. Development, evaluation,and peer coaching for continuing contract
1.15teachers, and performance-linked pay. (a) To improve student learning and success and
1.16to support teachers' roles in improving students' educational achievement, a school board
1.17and an exclusive representative of the teachers in the district, consistent with paragraph
1.18(b), may develop a teacher evaluation and peer review process for probationary and
1.19continuing contract teachers through joint agreement and, consistent with paragraph (d),
1.20may develop a performance pay system. If a school board and the exclusive representative
1.21of the teachers do not agree to an annual teacher evaluation and peer review process, then
1.22the school board and the exclusive representative of the teachers must implement the plan
1.23for evaluation and review under paragraph (c). The process must include having trained
1.24observers serve as peer coaches or having teachers participate in professional learning
1.25communities, consistent with paragraph (b).
2.1(b) To develop, improve, and support qualified teachers and effective teaching
2.2practices and improve student learning and success, the annual evaluation process for
2.3teachers:
2.4(1) must, for probationary teachers, provide for all evaluations required under
2.5subdivision 5;
2.6(2) must establish a three-year professional review cycle for each teacher that
2.7includes an individual growth and development plan, a peer review process, the
2.8opportunity to participate in a professional learning community under paragraph (a), and
2.9at least one summative evaluation performed by a qualified and trained evaluator such as a
2.10school administrator. For the years when a tenured teacher is not evaluated by a qualified
2.11and trained evaluator, the teacher must be evaluated by a peer review;
2.12(3) must be based on professional teaching standards established in rule;
2.13(4) must coordinate staff development activities under sections122A.60 and
2.14122A.61
with this evaluation process and teachers' evaluation outcomes;
2.15(5) may provide time during the school day and school year for peer coaching and
2.16teacher collaboration;
2.17(6) may include mentoring and induction programs;
2.18(7) must include an option for teachers to develop and present a portfolio
2.19demonstrating evidence of reflection and professional growth, consistent with section
2.20122A.18, subdivision 4
, paragraph (b), and include teachers' own performance assessment
2.21based on student work samples and examples of teachers' work, which may include video
2.22among other activities for the summative evaluation;
2.23(8) must use data from valid and reliable assessments aligned to state and local
2.24academic standards and must use state and local measures of student growth that may
2.25include value-added models or student learning goals to determine 35 percent of teacher
2.26evaluation results;
2.27(9) must use longitudinal data on student engagement and connection, and other
2.28student outcome measures explicitly aligned with the elements of curriculum for which
2.29teachers are responsible;
2.30(10) must require qualified and trained evaluators such as school administrators to
2.31perform summative evaluations;
2.32(11) must give teachers not meeting professional teaching standards under clauses
2.33(3) through (10) support to improve through a teacher improvement process that includes
2.34established goals and timelines; and
2.35(12) must discipline a teacher for not making adequate progress in the teacher
2.36improvement process under clause (11) that may include a last chance warning,
3.1termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
3.2other discipline a school administrator determines is appropriate.
3.3Data on individual teachers generated under this subdivision are personnel data
3.4under section13.43 .
3.5(c) The department, in consultation with parents who may represent parent
3.6organizations and teacher and administrator representatives appointed by their respective
3.7organizations, representing the Board of Teaching, the Minnesota Association of School
3.8Administrators, the Minnesota School Boards Association, the Minnesota Elementary
3.9and Secondary Principals Associations, Education Minnesota, and representatives of
3.10the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
3.11Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
3.12in teacher evaluation, must create and publish a teacher evaluation process that complies
3.13with the requirements in paragraph (b) and applies to all teachers under this section and
3.14section122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
3.15evaluation and peer review process. The teacher evaluation process created under this
3.16subdivision does not create additional due process rights for probationary teachers under
3.17subdivision 5.
3.18(d) To provide incentives to encourage teachers to improve their knowledge and
3.19instructional skills to improve student learning and for school districts to recruit and retain
3.20highly qualified teachers and encourage highly qualified teachers to undertake challenging
3.21assignments, the performance pay system must, consistent with paragraph (b):
3.22(1) identify assessment and evaluation tools to measure student performance and
3.23progress;
3.24(2) establish performance goals and benchmarks for improvement;
3.25(3) describe how teachers can achieve career advancement and additional
3.26compensation;
3.27(4) describe how the school district will provide teachers with career advancement
3.28options that allow teachers to retain primary roles in student instruction and facilitate
3.29site-focused professional development that helps other teachers improve their skills;
3.30(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
3.31paid before implementing the pay system from being reduced as a result of participating
3.32in this system, and base all compensation increases while the performance pay system
3.33is in place on teacher performance; and
3.34(6) be negotiated and adopted according to the Public Employment Labor Relations
3.35Act under chapter 179A, except that notwithstanding section179A.20, subdivision 3 , a
3.36district may enter into a contract for a term of two or four years.
4.1(e) Notwithstanding section179A.20 or other law to the contrary, a school board and
4.2the exclusive representative of the teachers may agree to reopen a collective bargaining
4.3agreement for the purpose of entering into a performance pay system agreement under
4.4paragraph (d). Negotiations for a contract reopened under this section must be limited to
4.5issues related to the performance pay system.
4.6EFFECTIVE DATE.This section is effective the day following final enactment
4.7and applies to the 2015-2016 school year and later.
4.8 Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is
4.9amended to read:
4.10 Subd. 5. Development, evaluation,and peer coaching for continuing contract
4.11teachers, and performance-linked pay. (a) To improve student learning and success and
4.12to support teachers' roles in improving students' educational achievement, a school board
4.13and an exclusive representative of the teachers in the district, consistent with paragraph
4.14(b), may develop an annual teacher evaluation and peer review process for probationary
4.15and nonprobationary teachers through joint agreement and consistent with paragraph (d),
4.16may develop a performance pay system. If a school board and the exclusive representative
4.17of the teachers in the district do not agree to an annual teacher evaluation and peer review
4.18process, then the school board and the exclusive representative of the teachers must
4.19implement the plan for evaluation and review developed under paragraph (c). The process
4.20must include having trained observers serve as peer coaches or having teachers participate
4.21in professional learning communities, consistent with paragraph (b).
4.22(b) To develop, improve, and support qualified teachers and effective teaching
4.23practices and improve student learning and success, the annual evaluation process for
4.24teachers:
4.25(1) must, for probationary teachers, provide for all evaluations required under
4.26subdivision 2;
4.27(2) must establish a three-year professional review cycle for each teacher that
4.28includes an individual growth and development plan, a peer review process, the
4.29opportunity to participate in a professional learning community under paragraph (a), and
4.30at least one summative evaluation performed by a qualified and trained evaluator such
4.31as a school administrator;
4.32(3) must be based on professional teaching standards established in rule;
4.33(4) must coordinate staff development activities under sections122A.60 and
4.34122A.61
with this evaluation process and teachers' evaluation outcomes;
5.1(5) may provide time during the school day and school year for peer coaching and
5.2teacher collaboration;
5.3(6) may include mentoring and induction programs;
5.4(7) must include an option for teachers to develop and present a portfolio
5.5demonstrating evidence of reflection and professional growth, consistent with section
5.6122A.18, subdivision 4
, paragraph (b), and include teachers' own performance assessment
5.7based on student work samples and examples of teachers' work, which may include video
5.8among other activities for the summative evaluation;
5.9(8) must use data from valid and reliable assessments aligned to state and local
5.10academic standards and must use state and local measures of student growth that may
5.11include value-added models or student learning goals to determine 35 percent of teacher
5.12evaluation results;
5.13(9) must use longitudinal data on student engagement and connection and other
5.14student outcome measures explicitly aligned with the elements of curriculum for which
5.15teachers are responsible;
5.16(10) must require qualified and trained evaluators such as school administrators to
5.17perform summative evaluations;
5.18(11) must give teachers not meeting professional teaching standards under clauses
5.19(3) through (10) support to improve through a teacher improvement process that includes
5.20established goals and timelines; and
5.21(12) must discipline a teacher for not making adequate progress in the teacher
5.22improvement process under clause (11) that may include a last chance warning,
5.23termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
5.24other discipline a school administrator determines is appropriate.
5.25Data on individual teachers generated under this subdivision are personnel data
5.26under section13.43 .
5.27(c) The department, in consultation with parents who may represent parent
5.28organizations and teacher and administrator representatives appointed by their respective
5.29organizations, representing the Board of Teaching, the Minnesota Association of School
5.30Administrators, the Minnesota School Boards Association, the Minnesota Elementary
5.31and Secondary Principals Associations, Education Minnesota, and representatives of
5.32the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
5.33Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
5.34in teacher evaluation, must create and publish a teacher evaluation process that complies
5.35with the requirements in paragraph (b) and applies to all teachers under this section and
5.36section122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
6.1evaluation and peer review process. The teacher evaluation process created under this
6.2subdivision does not create additional due process rights for probationary teachers under
6.3subdivision 2.
6.4(d) To provide incentives to encourage teachers to improve their knowledge and
6.5instructional skills to improve student learning and for school districts to recruit and retain
6.6highly qualified teachers and encourage highly qualified teachers to undertake challenging
6.7assignments, the performance pay system must, consistent with paragraph (b):
6.8(1) identify assessment and evaluation tools to measure student performance and
6.9progress;
6.10(2) establish performance goals and benchmarks for improvement;
6.11(3) describe how teachers can achieve career advancement and additional
6.12compensation;
6.13(4) describe how the school district will provide teachers with career advancement
6.14options that allow teachers to retain primary roles in student instruction and facilitate
6.15site-focused professional development that helps other teachers improve their skills;
6.16(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
6.17paid before implementing the pay system from being reduced as a result of participating
6.18in this system, and base all compensation increases while the performance pay system
6.19is in place on teacher performance; and
6.20(6) be negotiated and adopted according to the Public Employment Labor Relations
6.21Act under chapter 179A, except that notwithstanding section179A.20, subdivision 3 , a
6.22district may enter into a contract for a term of two or four years.
6.23(e) Notwithstanding section179A.20 or other law to the contrary, a school board and
6.24the exclusive representative of the teachers may agree to reopen a collective bargaining
6.25agreement for the purpose of entering into a performance pay system agreement under
6.26paragraph (d). Negotiations for a contract reopened under this section must be limited to
6.27issues related to the performance pay system.
6.28EFFECTIVE DATE.This section is effective the day following final enactment
6.29and applies to the 2015-2016 school year and later.
6.30 Sec. 3. Minnesota Statutes 2012, section 124D.10, is amended by adding a subdivision
6.31to read:
6.32 Subd. 11a. Performance pay for charter schools. To provide incentives to
6.33encourage teachers to improve their knowledge and instructional skills to improve
6.34student learning and for charter schools to recruit and retain highly qualified teachers and
7.1encourage highly qualified teachers to undertake challenging assignments, a charter school
7.2may develop a performance pay system. If developed, the performance pay system must:
7.3(1) include the elements in section 122A.40, subdivision 8, paragraph (d), clauses
7.4(1) to (5);
7.5(2) if governed by a collective bargaining agreement, comply with section 122A.40,
7.6subdivision 8, paragraph (d), clause (6);
7.7(3) be adopted by the charter school board of directors adopting the agreement; and
7.8(4) be approved by a formal vote of the teachers employed at the charter school
7.9indicating that at least 70 percent of all teachers agree to implement the performance pay
7.10system, unless the charter school submits a performance pay system agreement under this
7.11subdivision before the first year of operation.
7.12EFFECTIVE DATE.This section is effective the day following final enactment
7.13and applies to the 2015-2016 school year and later.
7.14 Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
7.15amended to read:
7.16 Subdivision 1. General education revenue. General education revenue must be
7.17paid to a charter school as though it were a district. The general education revenue for
7.18each adjusted pupil unit is the state average general education revenue per pupil unit, plus
7.19the referendum equalization aid allowance in the pupil's district of residence, minus an
7.20amount equal to the product of the formula allowance according to section126C.10,
7.21subdivision 2 , times .0466, calculated without basic skills revenue, extended time revenue,
7.22pension adjustment revenue, evaluation and performance revenue, transition revenue, and
7.23transportation sparsity revenue, plus basic skills revenue, extended time revenue, pension
7.24adjustment revenue, evaluation and performance aid according to section 126C.10,
7.25subdivision 39, and transition revenue as though the school were a school district. The
7.26general education revenue for each extended time pupil unit equals $4,794.
7.27 Sec. 5. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 1, is
7.28amended to read:
7.29 Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
7.30general education revenue for each district equals the sum of the district's basic revenue,
7.31extended time revenue, gifted and talented revenue, small schools revenue, basic skills
7.32revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
7.33revenue, total operating capital revenue, equity revenue, alternative teacher compensation
7.34revenue, and transition revenue.
8.1(b) For fiscal year 2015 and later, the general education revenue for each district
8.2equals the sum of the district's basic revenue, extended time revenue, gifted and
8.3talented revenue, declining enrollment revenue, location equity revenue, small schools
8.4revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
8.5transportation sparsity revenue, total operating capital revenue, equity revenue, pension
8.6adjustment revenue, evaluation and performance revenue, and transition revenue.
8.7 Sec. 6. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
8.8to read:
8.9 Subd. 38. Evaluation and performance revenue. (a) For fiscal year 2016 and later,
8.10evaluation and performance revenue for a school district or charter school in which the
8.11school board, intermediate school board, or charter school board of directors (1) notified
8.12the commissioner by October 1 of the previous fiscal year of the district's or charter
8.13school's intention to implement a performance plan under section 122A.40, subdivision 8,
8.14paragraph (d); 122A.41, subdivision 5, paragraph (d); 136D.02; or 124D.10, subdivision
8.1511a, and (2) certifies to the commissioner by October 1 of that fiscal year that the district,
8.16intermediate district, or charter school has implemented the performance plan, equals $260
8.17times the number of pupils enrolled at the district or site on October 1 of the previous
8.18fiscal year. Of this amount, ... percent must be reserved for compensation increases
8.19consistent with the adopted performance plan.
8.20(b) For fiscal year 2016 and later, evaluation and performance revenue for a school
8.21district or charter school not receiving revenue under paragraph (a) is equal to $... times
8.22the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.
8.23(c) Evaluation and performance revenue for an intermediate school district equals
8.24the basic evaluation and performance aid for an intermediate school district calculated
8.25under subdivision 39.
8.26(d) Notwithstanding paragraphs (a), (b), and (c), the evaluation and performance
8.27revenue for a school district, intermediate school district, or charter school receiving
8.28revenue under section 122A.415 for the current school year equals $0.
8.29(e) For a newly combined or consolidated district, the revenue shall be computed
8.30using the sum of pupils enrolled on October 1 of the previous year in the districts entering
8.31into the combination or consolidation. The commissioner may adjust the revenue computed
8.32for a site using prior year data to reflect changes attributable to school closings, school
8.33openings, or grade level reconfigurations between the prior year and the current year.
8.34(f) For a charter school in the first year of operation, the revenue shall be computed
8.35using the number of pupils enrolled on October 1 of the current year.
9.1 Sec. 7. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.2to read:
9.3 Subd. 39. Basic evaluation and performance aid. For fiscal year 2016 and
9.4later, the basic evaluation and performance aid equals 65 percent of the evaluation and
9.5performance revenue under subdivision 38. The basic evaluation and performance aid
9.6for an intermediate school district equals $260 times the number of pupils enrolled in the
9.7school on October 1 of the previous year times the ratio of the sum of the evaluation and
9.8performance aid and evaluation and performance levy for all participating school districts
9.9to the maximum evaluation and performance revenue for those districts under subdivision
9.1038. The basic evaluation and performance aid for a charter school equals the evaluation
9.11and performance revenue under subdivision 38.
9.12 Sec. 8. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.13to read:
9.14 Subd. 40. Evaluation and performance levy. For fiscal year 2016 and later,
9.15the evaluation and performance levy for a school district equals the product of (1) the
9.16difference between the district's evaluation and performance revenue and the district's
9.17basic evaluation and performance aid, times (2) the lesser of one or the ratio of the
9.18district's adjusted net tax capacity per adjusted pupil unit to $6,100.
9.19 Sec. 9. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.20to read:
9.21 Subd. 41. Evaluation and performance equalization aid. (a) For fiscal year 2016
9.22and later, a district's evaluation and performance equalization aid equals the district's
9.23evaluation and performance revenue minus the district's basic evaluation and performance
9.24aid minus the district's evaluation and performance levy. If a district does not levy the
9.25entire amount permitted, the evaluation and performance equalization aid must be reduced
9.26in proportion to the actual amount levied.
9.27(b) A district's evaluation and performance aid equals the sum of the district's basic
9.28evaluation and performance aid and the district's evaluation and performance equalization
9.29aid.
9.30 Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.13, subdivision 4, is
9.31amended to read:
9.32 Subd. 4. General education aid. (a) For fiscal years 2013 and 2014 only, a district's
9.33general education aid is the sum of the following amounts:
10.1 (1) general education revenue, excluding equity revenue, total operating capital
10.2revenue, alternative teacher compensation revenue, and transition revenue;
10.3 (2) operating capital aid under section126C.10, subdivision 13b ;
10.4 (3) equity aid under section126C.10, subdivision 30 ;
10.5 (4) alternative teacher compensation aid under section126C.10, subdivision 36 ;
10.6 (5) transition aid under section126C.10, subdivision 33 ;
10.7 (6) shared time aid under section126C.01, subdivision 7 ;
10.8 (7) referendum aid under section126C.17 , subdivisions 7 and 7a; and
10.9 (8) online learning aid according to section124D.096 .
10.10(b) For fiscal year 2015 and later, a district's general education aid equals:
10.11(1) general education revenue, excluding operating capital revenue, equity revenue,
10.12location equity revenue, evaluation and performance revenue, and transition revenue,
10.13minus the student achievement levy, multiplied times the ratio of the actual amount of
10.14student achievement levy levied to the permitted student achievement levy; plus
10.15(2) equity aid under section126C.10, subdivision 30 ; plus
10.16(3) transition aid under section126C.10, subdivision 33 ; plus
10.17(4) shared time aid under section126C.10, subdivision 7 ; plus
10.18(5) referendum aid under section126C.17, subdivisions 7 and 7a; plus
10.19(6) online learning aid under section124D.096 ; plus
10.20(7) location equity aid according to section126C.10, subdivision 2d , paragraph
10.21(d).; plus
10.22(8) evaluation and performance aid according to section 126C.10, subdivision 41,
10.23paragraph (b).
10.24 Sec. 11. [136D.02] PERFORMANCE PAY SYSTEM.
10.25To provide incentives to encourage teachers to improve their knowledge and
10.26instructional skills to improve student learning and for intermediate school districts
10.27to recruit and retain highly qualified teachers and encourage highly qualified teachers
10.28to undertake challenging assignments, an intermediate school district may develop a
10.29performance pay system. If developed, the performance pay system must include the
10.30elements in section 122A.40, subdivision 8, paragraph (d), clauses (1) to (6).
10.31EFFECTIVE DATE.This section is effective the day following final enactment
10.32and applies to the 2015-2016 school year and later.
10.33 Sec. 12. REPEALER.
11.1Minnesota Statutes 2012, sections 122A.413; 122A.414; 122A.4144; 122A.415,
11.2subdivisions 1 and 3; 122A.4155; and 122A.416, and Minnesota Statutes 2013
11.3Supplement, section 122A.415, subdivisions 4, 5, and 6, are repealed effective for the
11.42017-2018 school year and later.
1.3amending Minnesota Statutes 2012, sections 124D.10, by adding a subdivision;
1.4126C.10, by adding subdivisions; Minnesota Statutes 2013 Supplement, sections
1.5122A.40, subdivision 8; 122A.41, subdivision 5; 124D.11, subdivision 1;
1.6126C.10, subdivision 1; 126C.13, subdivision 4; proposing coding for new law in
1.7Minnesota Statutes, chapter 136D; repealing Minnesota Statutes 2012, sections
1.8122A.413; 122A.414; 122A.4144; 122A.415, subdivisions 1, 3; 122A.4155;
1.9122A.416; Minnesota Statutes 2013 Supplement, section 122A.415, subdivisions
1.104, 5, 6.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8,
1.13is amended to read:
1.14 Subd. 8. Development, evaluation,
1.15
1.16to support teachers' roles in improving students' educational achievement, a school board
1.17and an exclusive representative of the teachers in the district, consistent with paragraph
1.18(b), may develop a teacher evaluation and peer review process for probationary and
1.19continuing contract teachers through joint agreement and, consistent with paragraph (d),
1.20may develop a performance pay system. If a school board and the exclusive representative
1.21of the teachers do not agree to an annual teacher evaluation and peer review process, then
1.22the school board and the exclusive representative of the teachers must implement the plan
1.23for evaluation and review under paragraph (c). The process must include having trained
1.24observers serve as peer coaches or having teachers participate in professional learning
1.25communities, consistent with paragraph (b).
2.1(b) To develop, improve, and support qualified teachers and effective teaching
2.2practices and improve student learning and success, the annual evaluation process for
2.3teachers:
2.4(1) must, for probationary teachers, provide for all evaluations required under
2.5subdivision 5;
2.6(2) must establish a three-year professional review cycle for each teacher that
2.7includes an individual growth and development plan, a peer review process, the
2.8opportunity to participate in a professional learning community under paragraph (a), and
2.9at least one summative evaluation performed by a qualified and trained evaluator such as a
2.10school administrator. For the years when a tenured teacher is not evaluated by a qualified
2.11and trained evaluator, the teacher must be evaluated by a peer review;
2.12(3) must be based on professional teaching standards established in rule;
2.13(4) must coordinate staff development activities under sections
2.15(5) may provide time during the school day and school year for peer coaching and
2.16teacher collaboration;
2.17(6) may include mentoring and induction programs;
2.18(7) must include an option for teachers to develop and present a portfolio
2.19demonstrating evidence of reflection and professional growth, consistent with section
2.21based on student work samples and examples of teachers' work, which may include video
2.22among other activities for the summative evaluation;
2.23(8) must use data from valid and reliable assessments aligned to state and local
2.24academic standards and must use state and local measures of student growth that may
2.25include value-added models or student learning goals to determine 35 percent of teacher
2.26evaluation results;
2.27(9) must use longitudinal data on student engagement and connection, and other
2.28student outcome measures explicitly aligned with the elements of curriculum for which
2.29teachers are responsible;
2.30(10) must require qualified and trained evaluators such as school administrators to
2.31perform summative evaluations;
2.32(11) must give teachers not meeting professional teaching standards under clauses
2.33(3) through (10) support to improve through a teacher improvement process that includes
2.34established goals and timelines; and
2.35(12) must discipline a teacher for not making adequate progress in the teacher
2.36improvement process under clause (11) that may include a last chance warning,
3.1termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
3.2other discipline a school administrator determines is appropriate.
3.3Data on individual teachers generated under this subdivision are personnel data
3.4under section
3.5(c) The department, in consultation with parents who may represent parent
3.6organizations and teacher and administrator representatives appointed by their respective
3.7organizations, representing the Board of Teaching, the Minnesota Association of School
3.8Administrators, the Minnesota School Boards Association, the Minnesota Elementary
3.9and Secondary Principals Associations, Education Minnesota, and representatives of
3.10the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
3.11Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
3.12in teacher evaluation, must create and publish a teacher evaluation process that complies
3.13with the requirements in paragraph (b) and applies to all teachers under this section and
3.14section
3.15evaluation and peer review process. The teacher evaluation process created under this
3.16subdivision does not create additional due process rights for probationary teachers under
3.17subdivision 5.
3.18(d) To provide incentives to encourage teachers to improve their knowledge and
3.19instructional skills to improve student learning and for school districts to recruit and retain
3.20highly qualified teachers and encourage highly qualified teachers to undertake challenging
3.21assignments, the performance pay system must, consistent with paragraph (b):
3.22(1) identify assessment and evaluation tools to measure student performance and
3.23progress;
3.24(2) establish performance goals and benchmarks for improvement;
3.25(3) describe how teachers can achieve career advancement and additional
3.26compensation;
3.27(4) describe how the school district will provide teachers with career advancement
3.28options that allow teachers to retain primary roles in student instruction and facilitate
3.29site-focused professional development that helps other teachers improve their skills;
3.30(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
3.31paid before implementing the pay system from being reduced as a result of participating
3.32in this system, and base all compensation increases while the performance pay system
3.33is in place on teacher performance; and
3.34(6) be negotiated and adopted according to the Public Employment Labor Relations
3.35Act under chapter 179A, except that notwithstanding section
3.36district may enter into a contract for a term of two or four years.
4.1(e) Notwithstanding section
4.2the exclusive representative of the teachers may agree to reopen a collective bargaining
4.3agreement for the purpose of entering into a performance pay system agreement under
4.4paragraph (d). Negotiations for a contract reopened under this section must be limited to
4.5issues related to the performance pay system.
4.6EFFECTIVE DATE.This section is effective the day following final enactment
4.7and applies to the 2015-2016 school year and later.
4.8 Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is
4.9amended to read:
4.10 Subd. 5. Development, evaluation,
4.11
4.12to support teachers' roles in improving students' educational achievement, a school board
4.13and an exclusive representative of the teachers in the district, consistent with paragraph
4.14(b), may develop an annual teacher evaluation and peer review process for probationary
4.15and nonprobationary teachers through joint agreement and consistent with paragraph (d),
4.16may develop a performance pay system. If a school board and the exclusive representative
4.17of the teachers in the district do not agree to an annual teacher evaluation and peer review
4.18process, then the school board and the exclusive representative of the teachers must
4.19implement the plan for evaluation and review developed under paragraph (c). The process
4.20must include having trained observers serve as peer coaches or having teachers participate
4.21in professional learning communities, consistent with paragraph (b).
4.22(b) To develop, improve, and support qualified teachers and effective teaching
4.23practices and improve student learning and success, the annual evaluation process for
4.24teachers:
4.25(1) must, for probationary teachers, provide for all evaluations required under
4.26subdivision 2;
4.27(2) must establish a three-year professional review cycle for each teacher that
4.28includes an individual growth and development plan, a peer review process, the
4.29opportunity to participate in a professional learning community under paragraph (a), and
4.30at least one summative evaluation performed by a qualified and trained evaluator such
4.31as a school administrator;
4.32(3) must be based on professional teaching standards established in rule;
4.33(4) must coordinate staff development activities under sections
5.1(5) may provide time during the school day and school year for peer coaching and
5.2teacher collaboration;
5.3(6) may include mentoring and induction programs;
5.4(7) must include an option for teachers to develop and present a portfolio
5.5demonstrating evidence of reflection and professional growth, consistent with section
5.7based on student work samples and examples of teachers' work, which may include video
5.8among other activities for the summative evaluation;
5.9(8) must use data from valid and reliable assessments aligned to state and local
5.10academic standards and must use state and local measures of student growth that may
5.11include value-added models or student learning goals to determine 35 percent of teacher
5.12evaluation results;
5.13(9) must use longitudinal data on student engagement and connection and other
5.14student outcome measures explicitly aligned with the elements of curriculum for which
5.15teachers are responsible;
5.16(10) must require qualified and trained evaluators such as school administrators to
5.17perform summative evaluations;
5.18(11) must give teachers not meeting professional teaching standards under clauses
5.19(3) through (10) support to improve through a teacher improvement process that includes
5.20established goals and timelines; and
5.21(12) must discipline a teacher for not making adequate progress in the teacher
5.22improvement process under clause (11) that may include a last chance warning,
5.23termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
5.24other discipline a school administrator determines is appropriate.
5.25Data on individual teachers generated under this subdivision are personnel data
5.26under section
5.27(c) The department, in consultation with parents who may represent parent
5.28organizations and teacher and administrator representatives appointed by their respective
5.29organizations, representing the Board of Teaching, the Minnesota Association of School
5.30Administrators, the Minnesota School Boards Association, the Minnesota Elementary
5.31and Secondary Principals Associations, Education Minnesota, and representatives of
5.32the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
5.33Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
5.34in teacher evaluation, must create and publish a teacher evaluation process that complies
5.35with the requirements in paragraph (b) and applies to all teachers under this section and
5.36section
6.1evaluation and peer review process. The teacher evaluation process created under this
6.2subdivision does not create additional due process rights for probationary teachers under
6.3subdivision 2.
6.4(d) To provide incentives to encourage teachers to improve their knowledge and
6.5instructional skills to improve student learning and for school districts to recruit and retain
6.6highly qualified teachers and encourage highly qualified teachers to undertake challenging
6.7assignments, the performance pay system must, consistent with paragraph (b):
6.8(1) identify assessment and evaluation tools to measure student performance and
6.9progress;
6.10(2) establish performance goals and benchmarks for improvement;
6.11(3) describe how teachers can achieve career advancement and additional
6.12compensation;
6.13(4) describe how the school district will provide teachers with career advancement
6.14options that allow teachers to retain primary roles in student instruction and facilitate
6.15site-focused professional development that helps other teachers improve their skills;
6.16(5) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
6.17paid before implementing the pay system from being reduced as a result of participating
6.18in this system, and base all compensation increases while the performance pay system
6.19is in place on teacher performance; and
6.20(6) be negotiated and adopted according to the Public Employment Labor Relations
6.21Act under chapter 179A, except that notwithstanding section
6.22district may enter into a contract for a term of two or four years.
6.23(e) Notwithstanding section
6.24the exclusive representative of the teachers may agree to reopen a collective bargaining
6.25agreement for the purpose of entering into a performance pay system agreement under
6.26paragraph (d). Negotiations for a contract reopened under this section must be limited to
6.27issues related to the performance pay system.
6.28EFFECTIVE DATE.This section is effective the day following final enactment
6.29and applies to the 2015-2016 school year and later.
6.30 Sec. 3. Minnesota Statutes 2012, section 124D.10, is amended by adding a subdivision
6.31to read:
6.32 Subd. 11a. Performance pay for charter schools. To provide incentives to
6.33encourage teachers to improve their knowledge and instructional skills to improve
6.34student learning and for charter schools to recruit and retain highly qualified teachers and
7.1encourage highly qualified teachers to undertake challenging assignments, a charter school
7.2may develop a performance pay system. If developed, the performance pay system must:
7.3(1) include the elements in section 122A.40, subdivision 8, paragraph (d), clauses
7.4(1) to (5);
7.5(2) if governed by a collective bargaining agreement, comply with section 122A.40,
7.6subdivision 8, paragraph (d), clause (6);
7.7(3) be adopted by the charter school board of directors adopting the agreement; and
7.8(4) be approved by a formal vote of the teachers employed at the charter school
7.9indicating that at least 70 percent of all teachers agree to implement the performance pay
7.10system, unless the charter school submits a performance pay system agreement under this
7.11subdivision before the first year of operation.
7.12EFFECTIVE DATE.This section is effective the day following final enactment
7.13and applies to the 2015-2016 school year and later.
7.14 Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
7.15amended to read:
7.16 Subdivision 1. General education revenue. General education revenue must be
7.17paid to a charter school as though it were a district. The general education revenue for
7.18each adjusted pupil unit is the state average general education revenue per pupil unit, plus
7.19the referendum equalization aid allowance in the pupil's district of residence, minus an
7.20amount equal to the product of the formula allowance according to section
7.21subdivision 2
7.22pension adjustment revenue, evaluation and performance revenue, transition revenue, and
7.23transportation sparsity revenue, plus basic skills revenue, extended time revenue, pension
7.24adjustment revenue, evaluation and performance aid according to section 126C.10,
7.25subdivision 39, and transition revenue as though the school were a school district. The
7.26general education revenue for each extended time pupil unit equals $4,794.
7.27 Sec. 5. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 1, is
7.28amended to read:
7.29 Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
7.30general education revenue for each district equals the sum of the district's basic revenue,
7.31extended time revenue, gifted and talented revenue, small schools revenue, basic skills
7.32revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity
7.33revenue, total operating capital revenue, equity revenue, alternative teacher compensation
7.34revenue, and transition revenue.
8.1(b) For fiscal year 2015 and later, the general education revenue for each district
8.2equals the sum of the district's basic revenue, extended time revenue, gifted and
8.3talented revenue, declining enrollment revenue, location equity revenue, small schools
8.4revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
8.5transportation sparsity revenue, total operating capital revenue, equity revenue, pension
8.6adjustment revenue, evaluation and performance revenue, and transition revenue.
8.7 Sec. 6. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
8.8to read:
8.9 Subd. 38. Evaluation and performance revenue. (a) For fiscal year 2016 and later,
8.10evaluation and performance revenue for a school district or charter school in which the
8.11school board, intermediate school board, or charter school board of directors (1) notified
8.12the commissioner by October 1 of the previous fiscal year of the district's or charter
8.13school's intention to implement a performance plan under section 122A.40, subdivision 8,
8.14paragraph (d); 122A.41, subdivision 5, paragraph (d); 136D.02; or 124D.10, subdivision
8.1511a, and (2) certifies to the commissioner by October 1 of that fiscal year that the district,
8.16intermediate district, or charter school has implemented the performance plan, equals $260
8.17times the number of pupils enrolled at the district or site on October 1 of the previous
8.18fiscal year. Of this amount, ... percent must be reserved for compensation increases
8.19consistent with the adopted performance plan.
8.20(b) For fiscal year 2016 and later, evaluation and performance revenue for a school
8.21district or charter school not receiving revenue under paragraph (a) is equal to $... times
8.22the number of pupils enrolled at the district or site on October 1 of the previous fiscal year.
8.23(c) Evaluation and performance revenue for an intermediate school district equals
8.24the basic evaluation and performance aid for an intermediate school district calculated
8.25under subdivision 39.
8.26(d) Notwithstanding paragraphs (a), (b), and (c), the evaluation and performance
8.27revenue for a school district, intermediate school district, or charter school receiving
8.28revenue under section 122A.415 for the current school year equals $0.
8.29(e) For a newly combined or consolidated district, the revenue shall be computed
8.30using the sum of pupils enrolled on October 1 of the previous year in the districts entering
8.31into the combination or consolidation. The commissioner may adjust the revenue computed
8.32for a site using prior year data to reflect changes attributable to school closings, school
8.33openings, or grade level reconfigurations between the prior year and the current year.
8.34(f) For a charter school in the first year of operation, the revenue shall be computed
8.35using the number of pupils enrolled on October 1 of the current year.
9.1 Sec. 7. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.2to read:
9.3 Subd. 39. Basic evaluation and performance aid. For fiscal year 2016 and
9.4later, the basic evaluation and performance aid equals 65 percent of the evaluation and
9.5performance revenue under subdivision 38. The basic evaluation and performance aid
9.6for an intermediate school district equals $260 times the number of pupils enrolled in the
9.7school on October 1 of the previous year times the ratio of the sum of the evaluation and
9.8performance aid and evaluation and performance levy for all participating school districts
9.9to the maximum evaluation and performance revenue for those districts under subdivision
9.1038. The basic evaluation and performance aid for a charter school equals the evaluation
9.11and performance revenue under subdivision 38.
9.12 Sec. 8. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.13to read:
9.14 Subd. 40. Evaluation and performance levy. For fiscal year 2016 and later,
9.15the evaluation and performance levy for a school district equals the product of (1) the
9.16difference between the district's evaluation and performance revenue and the district's
9.17basic evaluation and performance aid, times (2) the lesser of one or the ratio of the
9.18district's adjusted net tax capacity per adjusted pupil unit to $6,100.
9.19 Sec. 9. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision
9.20to read:
9.21 Subd. 41. Evaluation and performance equalization aid. (a) For fiscal year 2016
9.22and later, a district's evaluation and performance equalization aid equals the district's
9.23evaluation and performance revenue minus the district's basic evaluation and performance
9.24aid minus the district's evaluation and performance levy. If a district does not levy the
9.25entire amount permitted, the evaluation and performance equalization aid must be reduced
9.26in proportion to the actual amount levied.
9.27(b) A district's evaluation and performance aid equals the sum of the district's basic
9.28evaluation and performance aid and the district's evaluation and performance equalization
9.29aid.
9.30 Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.13, subdivision 4, is
9.31amended to read:
9.32 Subd. 4. General education aid. (a) For fiscal years 2013 and 2014 only, a district's
9.33general education aid is the sum of the following amounts:
10.1 (1) general education revenue, excluding equity revenue, total operating capital
10.2revenue, alternative teacher compensation revenue, and transition revenue;
10.3 (2) operating capital aid under section
10.4 (3) equity aid under section
10.5 (4) alternative teacher compensation aid under section
10.6 (5) transition aid under section
10.7 (6) shared time aid under section
10.8 (7) referendum aid under section
10.9 (8) online learning aid according to section
10.10(b) For fiscal year 2015 and later, a district's general education aid equals:
10.11(1) general education revenue, excluding operating capital revenue, equity revenue,
10.12location equity revenue, evaluation and performance revenue, and transition revenue,
10.13minus the student achievement levy, multiplied times the ratio of the actual amount of
10.14student achievement levy levied to the permitted student achievement levy; plus
10.15(2) equity aid under section
10.16(3) transition aid under section
10.17(4) shared time aid under section
10.18(5) referendum aid under section
10.19(6) online learning aid under section
10.20(7) location equity aid according to section
10.21(d)
10.22(8) evaluation and performance aid according to section 126C.10, subdivision 41,
10.23paragraph (b).
10.24 Sec. 11. [136D.02] PERFORMANCE PAY SYSTEM.
10.25To provide incentives to encourage teachers to improve their knowledge and
10.26instructional skills to improve student learning and for intermediate school districts
10.27to recruit and retain highly qualified teachers and encourage highly qualified teachers
10.28to undertake challenging assignments, an intermediate school district may develop a
10.29performance pay system. If developed, the performance pay system must include the
10.30elements in section 122A.40, subdivision 8, paragraph (d), clauses (1) to (6).
10.31EFFECTIVE DATE.This section is effective the day following final enactment
10.32and applies to the 2015-2016 school year and later.
10.33 Sec. 12. REPEALER.
11.1Minnesota Statutes 2012, sections 122A.413; 122A.414; 122A.4144; 122A.415,
11.2subdivisions 1 and 3; 122A.4155; and 122A.416, and Minnesota Statutes 2013
11.3Supplement, section 122A.415, subdivisions 4, 5, and 6, are repealed effective for the
11.42017-2018 school year and later.
