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Minnesota School Boards Association 2014 LEGISLATIVE SUMMARY Governor Dayton declared the 2014 legislative session “The Unsession,” focusing on removing unneeded laws and clarifying existing statues. While this was accomplished, so was much, much more. The 2014 legislative session began on February 25, and the Democratic-controlled House, Senate and Governor’s office completed their work on Friday, May 16. The February Fiscal Forecast, which was released February 28, announced a $1.2 billion surplus. “The Unsession” quickly became a full-blown session condensed into ten weeks. Many major finance and policy bills are now the law of the land. In a ten-week session, the legislature passed a statewide school district Health Insurance Transparency Act (HITA), E-12 omnibus education finance and policy bills, Safe and Supportive Schools Act, Women’s Economic Security Act (WESA), medical marijuana, minimum wage increase bill, and much more. This document is an overview of bills that have a direct impact on public school districts. The MSBA Government Relations Team encourages you to take the time to read through this 2014 Legislative Summary. We want to make sure you are aware of the comprehensive collection of bills that will affect public education today and in the future. “The Unsession?” We will let you decide for yourself …

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Page 1: 2014 - Minnesota School Boards Association · 2014-07-25 · 2014 . LEGISLATIVE SUMMARY . Governor Dayton declared the 2014 legislative session “The ... Districts must adopt or

Minnesota School Boards Association

2014 LEGISLATIVE SUMMARY

Governor Dayton declared the 2014 legislative session “The Unsession,” focusing on removing unneeded laws and clarifying existing statues. While this was accomplished, so was much, much more. The 2014 legislative session began on February 25, and the Democratic-controlled House, Senate and Governor’s office completed their work on Friday, May 16.

The February Fiscal Forecast, which was released February 28, announced a $1.2 billion surplus. “The Unsession” quickly became a full-blown session condensed into ten weeks. Many major finance and policy bills are now the law of the land.

In a ten-week session, the legislature passed a statewide school district Health Insurance Transparency Act (HITA), E-12 omnibus education finance and policy bills, Safe and Supportive Schools Act, Women’s Economic Security Act (WESA), medical marijuana, minimum wage increase bill, and much more. This document is an overview of bills that have a direct impact on public school districts.

The MSBA Government Relations Team encourages you to take the time to read through this 2014 Legislative Summary. We want to make sure you are aware of the comprehensive collection of bills that will affect public education today and in the future.

“The Unsession?” We will let you decide for yourself …

Page 2: 2014 - Minnesota School Boards Association · 2014-07-25 · 2014 . LEGISLATIVE SUMMARY . Governor Dayton declared the 2014 legislative session “The ... Districts must adopt or

Contents Total State Spending

Chapter # Bill # Page #

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E-12 Supplemental Spending Bill Property Taxes Non-Revenue

312 (Art. 15-22) HF3172 3-4

E-12 Policy Bill Highlights 272 HF2397 4

Safe and Supportive Schools Act 160 HF826 5

Health Insurance Transparency Act (HITA) 279 HF2180 6

Local Optional Revenue – Tax Bill #1 150 HF1777 6

Nonprofit Sales Tax Exemption – Tax Bill #2 308 HF3167 6

Women’s Economic Security Act (WESA) 239 HF2536 7

Confidential Employee Redefined 219 HF2313 7

Joint Powers Employee Protection 223 SF2490 8

Public Employment Relations Board (PERB) 211 HF3014 8

Therapists in Bargaining Unit 247 SF1722 8

Expungement of Criminal Records 246 HF2576 8

Public Construction Contracts 253 HF1984 9

Elections Administration 264 SF2390 9

Campaign Contribution Limits 265 SF2782 10

School Boards on Social Media 274 HF2236 10

Data Security Breach 284 HF183 10

Checking Account Numbers 208 HF2405 10

Pensions & Retirement: Duluth TRA Merger 296 HF1951 11

School Trust Lands 312 (Art.14) HF3172 11

College Possible 312 (Art.1) HF3172 12

Minimum Wage 166 HF2091 12

Broadband Grant Program 312 (Art. 3) HF3172 12

Veterans’ Voice Month 267 HF2812 13

Bills that Did NOT Become Law 14-15

Reports Due to Legislature 16

New District Responsibilities 17-18

MSBA Responsibilities 18

MDE Rulemaking and Authority 18

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Omnibus Supplemental Budget Bill Targets

qThe news of a $1.2 billion state surplus and a late start date, which resulted in a short session, did not distract

state legislative leaders; they were determined to end on time, if not early. In a time saving effort, they agreed

to consolidate all the finance bills into one 700-page, mega-finance bill: The Omnibus Supplemental Budget

Bill (HF3172). The statewide targets put education third in line for supplemental revenue, behind Health and

Human Services and Judiciary and Public Safety.

• Health and Human Services: $103.9 million

• Judiciary and Public Safety: $35 million

• E-12: $54 million (see breakdown in spending on the next page)

• Higher Education: $22.25 million

• Jobs and Economic Development: $19.8 million

• Transportation: $15 million

• Environment and Agriculture: $10.5 million

• Pensions: $10 million transfer from the Assigned Risk

• State Government and Veterans Affairs: $911,000

• Additional Spending: $20 million in various bills (Women’s Economic Security Act, synthetic drugs, medical marijuana, etc.)

For the Statewide General Fund Summary, see 2014 Changes Budget Balance – Appendix 1 For the complete Omnibus Supplemental Budget Bill, see HF3172 - visit: www.leg.state.mn

Bonding Bill In the second year of the biennium, the primary duty of the legislature is to pass a bonding bill. Here are the

highlights:

• General Obligation Bonds: $846 million

• Cash for additional infrastructure projects: $198.7 million

• Safe Routes to School: $1 million

For a complete list of bonding projects as passed by the House and the Senate included in the Omnibus Capital Investment Bill, see 2014 Capital Investment Projects – Appendix 1

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$54 million in E-12 Education Funding FY15

$104 million in tails for FY16-17

• Basic formula increase - $25 per pupil

• Teacher evaluation - $302 per teacher in districts with no Q-comp

• ELL – expands eligibility from five to six years - $4.9 million

• Fully funds lunch for students who qualify for free and reduced - $3 million

• Provides breakfast for every child in kindergarten - $569,000

• ECFE increase and links future increases to basic funding formula - $4.6 million

• Early Learning Scholarships and cap eliminated - $4.6 million

• School readiness increase - $1.8 million

• Recovery programs - $500,000

• St. Paul Promise Neighborhood Program - $350,000

• Northside Achievement Zone - $350,000

• IT Academy - $300,000

• PEIP - $294,000

• ABE growth factor - $213,000

Department of Education

• Restrictive procedures research and report - $250,000

• Inventory of Career and Tech Programs - $100,000

• Q-comp/teacher evaluation report - $25,000

• Physical education report - $25,000

• Expedited rulemaking special education task force - $40,000

• Data disclosure for maltreatment

Education Property Tax Provisions

• Lease levy increase - $50 per pupil

• Safe schools levy increase for intermediate school districts - $5 per pupil

• Natural disaster debt service - $2.8 FY17

• Local optional revenue - $424 per pupil

For E-12 funding appropriations overview, see MSBA E-12 Supplemental Education Funding Overview – Appendix 1

For a more detailed spreadsheet of the E-12 funding for FY 2014-2015, see E-12 Education Budget – Appendix 1 For education FY 2014-2015 budget – property tax tracking spreadsheet, see E-12 Property Tax – Appendix 1

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Education Finance Bill

Following are the education provisions, with no funding, contained in the Omnibus Supplemental Bill:

• Requires the Commissioner to report on the effectiveness of the early learning scholarship program by January 15, 2016.

• Allows the extension of the innovative delivery pilot project and opens application for other school districts annually until March 1, 2018.

• Requires school districts to include information on the discharge of a teacher due to a child abuse conviction in the teacher’s employment record and directs school districts to provide that information to the Board of Teaching and MDE. If a teacher is being considered for employment, the school district must contact the Board of Teaching and MDE to ascertain if the candidate has had their license suspended or revoked for child abuse.

• Increases the minimum construction project from $1.4 million to $2 million before Minnesota Department of Education review and comment is required, simplifies the process and eliminates review and comment on most maintenance projects.

For MSBA Education Finance Omnibus Bill overview – Appendix 2 For school district funding in HF 3172, see E-12 District-by-District Runs – Appendix 2

Education Policy Omnibus Bill

Following are the major education policy provisions included in the Policy Omnibus Bill:

• The 2014 Education Policy bill, as passed, makes sweeping policy changes in the way English Language Learners are taught, teachers are trained, and parents are informed in regard to ELL student progress.

• Under this bill, students fluent in more than one language will be eligible for a state bi-lingual and multi-lingual seal to be affixed to the student’s transcript.

• One of the more controversial provisions changes the way teachers are licensed in Minnesota. Under this law, the teacher candidates need not pass the basic skills test; instead, they can achieve a comparable score on college entrance exams like the ACT or SAT. Teachers of language immersion world language programs are exempt from this provision. The pedagogy and content skills tests are still required by all teacher candidates.

• This bill also eliminates the prohibition on colleges to advertise, solicit and recruit high school students only on educational or programmatic grounds. This provision was amended in the Omnibus Supplemental Bill to apply to school districts with over 700 students in grades 10-12. It also requires all school districts to provide counseling services to pupils and their parents before a student enrolls in post-secondary courses; also by March 1 each year, the school district must provide up-to-date information on the district’s web page about the requirements and the ability to earn postsecondary credit to students in grades 8-11.

For a more detailed summary of HF2397, see MSBA 2014 Omnibus Education Policy Bill Overview – Appendix 3

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Safe and Supportive Schools Act

This bill had over 25 separate legislative actions, 15 committee hearings, a task force, hours of debate, compromise, analysis and, finally, the Governor’s signature.

1. The bill applies to student vs. student bullying.

2. Traditional notions of school authority are maintained.

Behavior that occurs at school, on buses or school events is covered. Electronic behavior that occurs off school premises but “substantially and materially disrupts” the school or “learning” can be disciplined as well. This is the same standard that has always been used regarding questions of “out of school” behavior.

3. The definition of bullying has four parts.

The key provision of the bill is the definition of bullying. It is easy to break it down:

a. Bullying is intimidating, threatening, abusive or hurtful conduct

b. It is objectively offensive, and

c. The conduct involves an imbalance of power and is repeated, or

d. The conduct materially and substantially interferes with a student’s education or ability to participate in school activities.

Bullying falls into two categories: (1) bad behavior that involves an imbalance of power and pattern, or (2) bad behavior that significantly affects a student’s ability to participate in school, classes, or events.

4. Districts must adopt or amend existing policies to comply with the new law. This statute is

effective July 1 for the 2014-2015 school year. MSBA has revised its model policy for school boards. The policy is to be adopted in consultation with parents, students and community organizations “to the extent practicable.” The policy must include the examples of intimidating, threatening, abusive or harmful conduct contained in subsection 2(g) of the statute. This paragraph contains a listing of examples. The policy must emphasize “remedial” responses to bullying.

5. The policy must be distributed. You have to post a summary in the office, put it in the handbook and give it to school employees and anyone else who regularly interacts with students.

6. Training and communication are required. “Consistent with local policy,” schools must discuss the policy with students and school personnel. Schools must establish a three-year training cycle for employees.

7. Requirements for schools:

a. Designate a primary contact person for bullying

b. Require employees to make reasonable efforts to address bullying when they see it or know about it

c. Commence investigations within 3 days of receipt of a report

d. Contact parents as appropriate

e. Prohibit retaliation, identify school responses, and don’t solely rely on anonymous reports

f. Inform students and parents of their data practices rights

This interpretation of the Safe and Supportive Schools Act was provided by Roger Aronson of the Minnesota Association of Secondary School Principals.

For more detailed information about what’s in and what’s out of the Safe and Supportive Schools Act HF826, see MSBA Anti-Bullying Bill Summary – Appendix 4 For MSBA Revised Bullying Prohibition Policy (514) – Appendix 4

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Health Insurance Transparency Act (HITA)

The Health Insurance Transparency Act will require school districts to seek three health care provider proposals every two years (unless the largest bargaining unit agrees to longer term). One of those proposals would need to be from the Public Employee Insurance Program (PEIP). The bill also imposes a gift ban on a school board member, a superintendent, a school principal, and a school district officer of any independent school district.

Self-insured school districts are required to seek three proposals for “administrative services only” but are not required to get a proposal from PEIP. The Education Finance Bill appropriated $294,000 to PEIP to assist in their preparation of proposals.

For a detailed list of the new processes and requirements and effective dates for HF2180, see MSBA HITA Report – Appendix 5

Local Optional Revenue – Tax Bill #1

This bill is a modification and expansion of the Location Equity Revenue, which was passed by the 2013 legislature. The new version of the bill allows all school districts to access Local Optional Revenue up to $424 per student. Effective for revenue in FY16.

For more information on the 2014 Tax Bill (Laws 2014, Chapter 150) Impact on FY 2016 Maximum School District Revenue, Aid and Levy, see Tax Bill School Revenue Changes – Appendix 6

Nonprofit Tax Exemption Increased and New Tax Credit – Tax Bill #2

This bill increases the annual limit of non-taxable fundraising sales by educational nonprofit organizations from $10,000 to $20,000, effective for sales after December 31, 2014. This bill also defines what constitutes a “fundraising day” which has never been defined in statute before. This definition excludes ongoing sales in stores and restaurants, ongoing sales over the internet and regularly scheduled classes or activities that are part of the nonprofit’s normal course of business. Effective immediately.

This tax bill also contains a temporary new reading tax credit for parents or guardians of a qualifying child. This tax credit would be for 75% of expenses paid for tutoring, instruction, or treatment not covered by health care, for up to $2,000. The tax credit can be spent for children who are not receiving special education services from a public school and yet have a deficiency in reading skills that impair them from meeting expected academic standards. Effective from December 31, 2013, to January 1, 2015.

For more information about the Omnibus Supplemental Tax Bill, visit: HF3167 on www.leg.state.mn.us

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Women’s Economic Security Act (WESA)

The Women’s Economic Security Act is a comprehensive package of labor and economic development initiatives that intend to improve the standing of women in the workplace.

There are five components of the act that affect public employers:

• First, the bill extends the protected class of “familial status” to employment practices in the Minnesota Human Rights Act. “Familial status” is defined as “the condition of one or more minors being domiciled with (1) their parent or parents or the minor’s legal guardian or (2) the designee or the parent or parents or guardian with the written permission of the parent or parents or guardian. The protections afforded against discrimination on the basis of family status apply to any person who is pregnant. The intent of this language is to ensure that those with a “familial status” are not discriminated against for career advancement opportunities, promotions, and hiring and firing practices. This does not require special treatment regarding performance.

• Second, this bill expands unpaid leave under the Minnesota Parental Leave Act from 6 to 12 weeks and allows use of leave under the Parental Leave Act for pregnancy-related needs. The leave shall begin at a time requested by the employee but the leave must begin within 12 months of the birth or adoption.

• Third, it expands the use of personal sick leave to cover the care of a mother-in-law, father-in-law, or grandchildren, and for use in circumstances of domestic abuse, sexual assault, and stalking.

• Fourth, it requires employers to provide reasonable accommodations for employees with health conditions related to pregnancy or childbirth if the employee requests accommodation, unless the accommodation would impose an undue hardship on the operation of the employer’s business. The bill specifies that an employer cannot claim undue hardship for the following accommodations: more frequent restroom, food, and water breaks; seating; and limits on lifting over 20 pounds. A reasonable accommodation may include a temporary transfer to a less strenuous or hazardous position.

• Fifth, the bill requires an employer to make reasonable efforts to provide nursing mothers a room, other than a bathroom, which is shielded from view and free from intrusion from coworkers and the public and must include access to an electrical outlet. The bill p rohibits an employer from retaliating against an employee for asserting rights under this section.

For more detailed information about the WESA Summary and MSBA lobbying efforts – Appendix 7, or visit: HF2536 on www.leg.state.mn.us

Confidential Employee Redefined

This law modifies the definition of “confidential employee” under the Public Employee Labor Relations Act (PELRA). Under current law, an employee that “has access” to an employer’s labor-related data can be classified as confidential and is excluded from joining a bargaining unit with other non-confidential employees. The new law tightens that definition to only employees that are “required to access and use” the labor relations data.

If a union does not agree with the determination, an administrative process is available for the union to challenge the classification, but resolution does not always happen quickly.

For more information about the new definition of confidential employee, visit: HF2313 on www.leg.state.mn.us

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Joint Powers Employee Protection

The Joint Powers Employee Protection law spells out a specific process for local units of government to follow when they form a joint powers entity. The continuing contract portion of the law guarantees that the new joint powers entity would continue to be covered by the terms of the collective bargaining agreement with their former employee until a new agreement can be reached.

MSBA, in cooperation with other local government groups, fought hard against the legislation, and encouraged member school districts to contact their legislators with concerns about the bill. These objections prompted the Governor’s office to work with the authors to tighten up the bill. The modified bill is scaled down to impact very few joint powers arrangements involving school districts.

To see a letter from local units of government to legislative leaders, see JPA Letter – Appendix 8 For more information about the joint powers employee protection bill, visit: SF2490 on www.leg.state.mn.us

Public Employment Relations Board (PERB)

A new Public Employment Relations Board (PERB) has been created to hear unfair labor practice charges under the Public Employment Labor Relations Act (PELRA). These charges currently are heard in district court. Over the last ten years, local government has had only ten of these cases brought forward.

The bill provides that PERB decisions, including dismissals of unfair labor practices charges, may be reviewed by the Court of Appeals. The bill also grants the PERB authority to hire investigators, hearing officers, and other necessary personnel.

The Governor will be responsible for appointing two members to the PERB – one representing public employees and one representing public employers. The two appointees will jointly choose a third member. Appointees will serve four-year terms. The Board will be formed on July 1, 2014, and will begin hearing unfair labor practice charges on July 1, 2015.

For more information about PERB, visit: HF3014 on www.leg.state.mn.us

Therapists in Teacher Bargaining Unit

This bill expands the list of public employee positions that meet the definition of “teacher” for purposes of the Public Employee Labor Relations Act (PELRA) to include art therapist, music therapist, or audiologist. An estimated 70 of these individuals are employed statewide. Effective July 1, 2014.

For more information about inclusion of therapists in the teacher bargaining unit, visit: SF1722 on www.leg.state.mn.us

Expungement of Criminal Records

This bill allows the court to determine if an expungement for an offender would yield a benefit to the offender, which would outweigh the detriment to the public and public safety. Things the court can consider: 1) age; 2) education; 3) experience; 4) background development; 5) mental and emotional status; 6) severity of the offense; 7) community impact; 8) level of participation in probation programs; and 9) criminal history. If a record is expunged by the court, it may be reopened for purposes of a background check under 122A.18, subd. 8. These records are maintained by the Board of Teaching or licensing division of the Department of Education unless the court specifically directs these records closed.

For more information about expungement of criminal records, visit: HF2576 on www.leg.state.mn.us

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Page 10: 2014 - Minnesota School Boards Association · 2014-07-25 · 2014 . LEGISLATIVE SUMMARY . Governor Dayton declared the 2014 legislative session “The ... Districts must adopt or

Public Construction Contracts

This bill establishes minimum criteria that a “responsible contractor” must meet to be awarded a construction contract over $50,000 by a school district.

A contractor is required to verify that he/she meets the following criteria when the contractor responds to a proposal document:

1. compliance with workers' compensation and unemployment compensation requirements, registration with Department of Revenue and DEED, and has a valid federal tax identification number (or Social Security number, if an individual);

2. compliance with: minimum wages, overtime, prevailing wages, timely payment of wages to employees, no misrepresentation of employment relationship, Fair Labor Standards Act, and U.S. federal prevailing wage, all according to existing statutes, and the bill specifies when a violation occurs;

3. compliance with (and no violations in past three years) municipal requirements for payments of wages for construction work performed for that municipality;

4. compliance with (and no violations in past three years) of 181.723 (independent contractors); and chapter 326B (construction codes and licensing);

5. no current tax liens or tax delinquencies;

6. not currently debarred by the federal government, the state, or a municipality;

7. subcontractors or vendors the contractor intends to use have verified that they meet criteria in clauses (1) to (6).

School Districts’ are not obligated to verify any of the information in the contractor certification and have no liability if they reasonably rely on the certification statement in awarding the contract, or if they decline to award the contract based on a reasonable determination that the contractor failed to verify compliance.

The bill requires a contractor to submit a signed statement under oath by an owner or officer verifying compliance as a “responsible contractor.” Effective January 1, 2015, and applies to contracts entered into on and after that date.

For more information about construction contracts accountability and transparency bill, visit: HF1984 on www.leg.state.mn.us

Elections on Township Day Prohibited

This provision was included in the Elections Administration Bill; it prohibits school districts from holding special elections on Township Election Day to avoid administrative problems that arise from different absentee ballot periods and election hours. However, as negotiated by MSBA, this provision narrows the blackout window around Township Day from 56 days to 30 days before and after Township Day. This allows schools districts an additional 52 days during the year that they could now hold elections.

For more information about elections administration, visit: SF2390 on www.leg.state.mn.us

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Campaign Contribution Limits and Reporting

The Campaign Finance bill, increases allowable campaign contributions for candidates running for local office from $300 to $600 in an election year and from $100 to $200 in a nonelection year. If the office sought has a territory of 100,000 or more people, the limits are $1,000 in an election year and $250 in a nonelection year.

With the increase in contribution limits comes additional reporting requirements for the local units of government. They are now required to post local candidates’ campaign reports on their website not later than 30 days after the reports are received and the reports must remain on the website for four years. This does apply to local school board races and school district websites. A link to the website where the reports can be found must be posted on the website of the Campaign Finance and Public Disclosure Board as well. This requirement will apply to campaign finance reports filed on or after the day the bill is signed into law.

For more information about campaign contribution limits and reporting, visit: SF2782 on www.leg.state.mn.us

School Board Members Use of Social Media

This law clarifies that the use of social media by members of a school board does not violate the Minnesota Open Meeting Law as long as the social media use is limited to exchanges with all members of the general public. E-mail is not considered a type of social media.

For more information about open meeting law and social media use, visit: HF2236 on www.leg.state.mn.us

Data Security Breach

This law requires local governments to establish additional security protocols for private data and establishes additional penalties for employees who access private data without authorization.

The bill requires local governments, including school districts, to annually do a comprehensive security assessment of any private data maintained by the school. If any breach has happened, the school district is required to provide a written notice to the victim(s) and must inform the individual(s) that a report will be prepared and how the individual(s) may obtain access to the report.

The knowing access of unauthorized data by an employee is a criminal misdemeanor, and the employee can be suspended without pay or dismissed. Effective August 1, 2014.

For more information about unauthorized data access, visit: HF183 on www.leg.state.mn.us

Checking Account Numbers are Private

This law classifies checking account numbers as “security information” for purposes of the Data Practices Act. This means that an individual’s checking account number is private when submitted to a government entity. The classification applies regardless of the individual’s reason for submitting the account number.

For more information about classification of checking account numbers as nonpublic, visit: HF2405 on www.leg.state.mn.us

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Pension & Retirement Bill: DTRFA merger with TRA - PERA

The Omnibus Pensions Bill (OPB) contains financing for the consolidation of the Duluth Teachers’ Retirement Fund Association (DTRFA) into the Teachers Retirement Association (TRA). The yearly cost to the state is $14,031,000 beginning in FY2015 and will need to continue for 23 years to fully fund this merger.

St. Paul Teachers' Retirement Fund Association will see an increase in state aid of $7 million on October 15, 2015.

The pension bill also contains a Public Employees Retirement Association (PERA) employer and employee contribution increase. The PERA contribution increase of 0.25 percent is required under present law due to a two consecutive years reported actuarial contribution deficiency in the plan. The total contribution on behalf of the PERA General Plan is 7.5 percent while the employee contribution is 6.5 percent of statewide salaries. Effective on January 1, 2015.

The OPB also includes a measure to modify the PERA mandatory participation threshold that currently impacts employees once they earn at least $425 in any one month. This provision would change the monthly high amount to an annualized threshold. If an employee made more than $3,800 a year, they would have a PERA pension. This salary amount is annualized for $425 per month, which has not changed since 1988 when it was increased from $325. The change to an annualized salary will avoid having an employee eclipse the threshold due to a single month of elevated earnings.

For more information about the provisions in the Pensions and Retirement Bill, visit: HF1951 on www.leg.state.mn.us

Funding for School Trust Lands Director

The Agriculture, Environment and Natural Resources Article 14 provides $185,000 in 2015 for the activities and the administrative expenses of the School Trust Lands Director and additional staff according to the position created in the 2012 legislative session. This money will be reimbursed with revenue generated from the School Trust Lands.

For more information about funding for School Trust Lands director in the Omnibus Supplemental Budget Bill, visit: HF3172 (Art. 14) on www.leg.state.mn.us

Funding for the Legislative Permanent School Fund Commission

Provides $15,000 for the costs incurred by the Legislative Permanent School Fund Commission to be reimbursed with revenue generated from the school trust lands.

For more information about the appropriation for the Legislative Permanent School Fund Commission in the Omnibus Supplemental Budget Bill, visit: HF3172 (Art. 14)

Funding to Meet Fiduciary Duty – School Trust Lands

$1 million in 2015 only to meet the fiduciary duty to Minnesota children with regard to school trust lands. Commissioner of Education and Department of Natural Resources must develop a plan and present it to the legislature on the intended use of these funds. The plan must be approved by law and funds are available until June 30, 2017.

For more information about the school trust lands provisions in the Omnibus Supplemental Budget Bill, visit: HF3172 (Art. 14) on www.leg.state.mn.us For MSBA letter of support for School Trust Lands Funding – Appendix 9

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College Possible

The Higher Education Bill included a transfer of funds of $750,000 to expand the College Possible coaching and mentoring program. The bill requires that the program increase by at least 150 students and partner with at least three high schools in 2015. College Possible is required to report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over higher education and E-12 Committees on activities funded.

For more information about the appropriation for College Possible in the Omnibus Supplemental Budget Bill, visit: HF3172 (Art. 1) on www.leg.state.mn.us

Minimum Wage

A minimum wage increase is to be phased in over the next three years, and this law ties the rate to inflation beginning in 2017. The wage is determined by size of the employer, which is modified by the new law. “Large employer” is defined as having a budget of at least $500,000, decreased from $650,000, and the definition of “small employer” is also refined as having a budget of less than $500,000.

Every large employer must pay employees a rate of at least $8 per hour beginning Aug. 1, 2014; $9 per hour beginning Aug. 1, 2015; and $9.50 per hour beginning Aug. 1, 2016. Every small employer must pay employees a rate of $6.50 per hour beginning Aug. 1, 2014; $7.25 per hour beginning Aug. 1, 2015; and $7.75 per hour beginning Aug. 1, 2016.

Two exceptions to these wage amounts exist for younger employees. First, large employers must pay employees under the age of 18 a rate of at least $6.50 per hour. Second, all employers may elect to pay employees under age 20 a rate not less than $6.50 per hour, but only for their first 90 consecutive days of employment. After 90 days, the minimum hourly rate becomes $8.

As before, minimum wage requirements do not pertain to elected officials; individuals who serve on any governmental board, commission, committee, or other similar body; city volunteers; or any individual employed, directly or indirectly, by the city to provide police or fire protection services.

Effective August 1, 2014.

Broadband Grant Program

The Border-to-Border Broadband Development Grant Program was funded in the Jobs Article of the Omnibus Supplemental Budget Bill with one-time money of $20 million. School Districts can apply for the funds. The grant program will be administered through the Department of Employment and Economic Development (DEED). Eligibility for the grant funds are available to unserved and underserved areas of the state. The Office of Broadband Development is permitted to use up to 3 percent of the funds to continue broadband mapping in the state.

Schools are eligible to apply for the funds beginning in fiscal year 2015.

The full eligibility language is found on pages 33-35 in HF3172, visit www.leg.state.mn.us.

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Veterans’ Voices Month

The month of October is designated as Veterans’ Voices Month in recognition of the state’s desire to honor, recognize, and celebrate the contributions of veterans. Schools, organizations, and communities in the state are encouraged to hold events and programs that honor veterans and educate students and citizens about the unique culture of the military by sharing and studying veterans’ experiences through stories, essays, poetry, and art from the men and women who have served in the armed forces. The state declares that in order to educate the public, the governor may promote and encourage the observance of Veterans’ Voice Month.

Effective May 17, 2014.

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Bills That Did NOT Become Law

School Construction/Landfill Bill — defeated

If passed, this bill would have required school districts to annually alert staff and parents if their child attends a school located within one quarter-mile of a former landfill. MSBA testified against the bill because it was unnecessary due to existing voluntary cleanup measures through Minnesota Pollution Control Agency.

For more information about proposal to prohibit school construction near a landfill, visit: HF957/SF775 on www.leg.state.mn.us

Sick and Safe Time — defeated

If passed, this bill would have required that “sick and safe time” be earned at a rate of one hour for every 30 hours worked, with a maximum accrual of 72 hours per calendar year. The time could be used in ways that far exceed current statutory limitations for the use of sick time, including for the illness of employees (or their spouse, child, parent, grandparent, sibling or extended family member) illness; injury or health condition; need for diagnosis, care or treatment of mental or physical injury, illness, or health condition; or need for preventive care. Local government groups raised several concerns with the bill’s fiscal impact and are seeking an official local impact note from Minnesota Management & Budget on the legislation.

For more information on proposal to expand sick and safe time, visit: HF2461/SF2105 on www.leg.state.mn.us

“Best Value” School Service Contracts — defeated

If passed, this bill would have established criteria under which a school district may have entered into or renewed a service contract. This bill would have made it very difficult to contract out school services. The bill included a list of short- and long-term cost criteria to consider when determining a “best value” contract, including the bid price, transition costs, anticipated staff turnover costs, training and administrative costs, and enforcement costs. Employees would have been required to be paid similar wage, health benefits, and retirement benefits.

For more information about “Best Value” school service contracts proposal, visit: HF2272/SF1723 on www.leg.state.mn.us

Privatization of Public Services — defeated

If passed, this bill would have made privatizing any government service nearly impossible. “Privatization contract” means an agreement between a municipality and private contractor for the private contractor to provide services substantially similar to and in place of services previously provided by public employees.

This bill specified factors a school district must consider in evaluating proposals before entering into a privatization contract. These factors included:

• limited a privatization contract term to two years

• minimum wage rate for the private contractor to be the average wage rate for the classification of school district employees whose duties are most similar, plus benefits

• required the private contract to at least meet the same affirmative action standards as the school district

• cannot cause the displacement of school district employees

• prohibited a private contractor from using money paid to it by a school district to support or oppose unionization or union activities

• Provided that all data relating to a privatization contract are public data and required data associated with the contract to be submitted to the appropriate auditor

For more information about proposal to privatize public services, visit: HF2459/SF2515 on www.leg.state.mn.us

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Alternate Publications vs. Newspapers — defeated

If passed, this bill would have allowed a school district to post proceedings, official notices, and summaries on the political subdivision’s website. The school district would have been required to designate that it would post its proceedings, notices, and summaries on its website instead of publishing them in the newspaper. In addition, school districts would have been required to publish a notice of the alternative publication in a qualified newspaper and on the school district’s website. Postings on the Web site would have needed to mirror the requirements as if the item were published in the newspaper. The school district would have needed to make paper copies available at its main office and at all public libraries within the jurisdiction.

For more information about the alternative publications proposal, visit: HF1152/SF1286 on www.leg.state.mn.us

Bus Post-Trip Inspections — defeated

If passed, this bill would have required a school bus driver to perform an inspection inside the school bus once routes are complete and confirm that no students remain unattended on the bus. If there was a failure to perform the inspection, a bus driver could have been charged with a petty misdemeanor.

For more information about the post-trip bus inspections proposal, visit: HF2481/SF2252 on www.leg.state.mn.us

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2014 Legislative Summary Reports Due to

Legislature

January 15, 2015 Report by Minnesota Department of Education (MDE) Commissioner on K-12 students’ experience with physical education.

January 15, 2015 Report by Minnesota Management and Budget (MMB) Commissioner to committee chairs

and ranking minority with jurisdiction over state government finance on ongoing costs incurred by Public Employees Insurance Program (PEIP) in compliance with Health Insurance Transparency Act (HITA).

January 15, 2015 P-20 partnership to make recommendations to the Governor and legislature on realigning

the governance and administrative structures of Early Education, K-12, and Postsecondary systems in Minnesota.

January 15, 2015 In consultation with the Commissioner of Education, the Department of Natural Resources

shall submit a report to the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over the natural resources and education policy and finance on the intended use of $1 million in funds to meet the state’s fiduciary duty to school trust fund.

February 1, 2015 Annual status report by Minnesota Department of Education (MDE) Commissioner on

progress of the online system to reduce special education paperwork.

February 1, 2015 College Possible must report to the chairs and ranking minority members of the legislative committees and jurisdictions over higher education and E-12 education committees on expansion of College Possible in Minnesota.

February 1, 2015 Report by Minnesota Department of Education (MDE) Commissioner on the use of

restrictive procedures.

February 1, 2015 Report by Minnesota Department of Education (MDE) Commissioner on Career and Technical Programs (CTE) program inventory.

February 1, 2015 Minnesota Department of Education (MDE) Commissioner to consult with stakeholders

on library services delivery and report to education policy and finance committees on increased access to library services statewide.

February 15, 2015 Multi-Tiered System Taskforce, including Minnesota Department of Education and

stakeholders, must develop recommendation and report to Education Policy and Finance Committees on improving the academic performance of underachieving students through a multi-tiered system of early intervention and instructional support.

January 15, 2016 Report by Minnesota Department of Education (MDE) Commissioner on Early Learning

Scholarships Program.

February 1, 2016 Report by Minnesota Department of Education (MDE) Commissioner on innovative pilot projects. The final report is to be submitted on February 1, 2019, with recommendation as to whether to continue, and, if so, whether to expand the project.

March 1, 2016 The Commissioner of Revenue must provide a report to the chairs and ranking minority

members of the committees of the House of Representatives and Senate with jurisdiction over taxes and education which contains the number of taxpayers claiming tax credit and average tax credit claimed for education expenses for child who did not qualify for a learning disability.

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New School District Responsibilities • Collect and submit data to MDE Commissioner on the use of restrictive procedures and reasonable

force.

• Create a District Advisory Committee representative of the community’s racial, cultural, linguistic, and economic status diversity.

• Apply for Innovation Delivery of Educational Services and Sharing (February 1)

• Per increase of ECFE allowance, districts are required to do a community assessment of needs and submit annual report to MDE Commissioner that demonstrates the ECFE program response to the needs assessment.

• School districts are required to give periodic opportunities to English language learner students to demonstrate their level of language proficiency, maintain records of these students, and affix a Language Proficiency Seal to the students’ diploma.

• Per adoption of the Military Children Interstate Compact, requires a school district to include a box on the enrollment form to allow students to self-identify as a “military-connected youth.”

• Per clarification of Career Pathways and Technical Education, school districts are to assist students to explore their educational, college, and career interests AND develop a transition plan to postsecondary educations or employment. Staff development plans are to include current workforce trends education, and focus on student learning goals, consistent with students’ transition plans.

• Requires staff development activities for staff to learn about workforce trends for students to develop goals and transition plans to post-secondary employment.

• School districts are to provide parents with a timely written summary, in an electronic or other format, of their student’s current and longitudinal performance and progress on the state’s academic standards as measured by state assessments.

• School districts are to provide counseling services to pupils and their parents or guardian before the pupils enroll in postsecondary courses. By March 1 of each year, requires districts to provide up-to- date information on the district’s web page about the program including information about enrollment requirements and the ability to earn postsecondary credit to all pupils in grades 8 through 11.

• School districts are encouraged to provide Experiential and Applied Learning Opportunities for students such as magnet, immersion, project-based, accelerated, college prep, career and technical education, Montessori, military, work-based and place-based learning. For districts that participate, requires districts to publicly adopt, review, and publish a plan for providing a program.

• Under enrollment options, school districts do not need to approve a return of a foster home student to the school they last attended.

• Under enrollment modifications:

o The requirement is eliminated for pupil and parent meeting with resident district representative prior to submitting an open enrollment application.

o The districts are to give written notice to parents within 90 days of when an achievement and integration district transfer application is submitted.

o Districts are to hold an impartial lottery if more enrollment option applications are received than open nonresident seats are available. Priority in the lottery goes to siblings of currently enrolled students and applications related to an approved integration and achievement plan.

o Lottery process is to be approved by school board and be posted on district web site.

o Districts are prohibited from using capacity of special education services as a basis for rejecting an enrollment options application.

• School districts are to collect and recycle at least three materials (paper, glass, plastic, metal, etc.).

• School districts are to adopt a new bullying prohibition policy and post it in the administrative offices and on the districts’ websites.

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• Filing officer of a school district is required to make all local campaign finance reports available on the school district’s website and a link where reports can be found must be posted on the website of Campaign Finance and Public Disclosure Board.

• When a teacher is discharged due to child maltreatment, the school principal must include the reason for the discharge in the teacher's employment record and forward all information to Board of Teaching and MDE. If requested, school districts need to make this information available to potential employers. In addition to the background check required under section 123B.03, a school board or other school hiring authority must contact the Board of Teaching and MDE to determine whether the teacher's license has been suspended or revoked.

• October is designated as Veterans’ Voices Month. School organizations and communities in the state are encouraged to hold events and programs that honor veterans and educate students and citizens about the unique culture of the military.

• School Districts will have to perform an annual assessment of “personal information” maintained by the district.

• Add “familial status” to list of protected classifications in anti-discrimination policies.

• An employer that provides an employee handbook to its employees must include Wage Disclosure Protection in the handbook notice of employee rights and remedies under this section. Review and revise policies to conform to the new requirements of the Women’s Economic Security Act.

• Bring English Learner focus and reform to the following aspects of K-12 education:

Head Start; World's Best Workforce; Regional Centers of Excellence; Reading Proficiency No Later Than End of Third Grade; Successful Postsecondary Transition; Student Growth and Performance Report; Instruction, Licensing and Preparation; Bilingual and English as a Second Language Teachers; Evaluation, Q-comp and Staff Development; Alternative Program Centers and Achievement Contracts; Early Childhood and School Readiness; Employment Transition Plan; Adult Basic Education; Definition of English Learners; Parent Involvement; and SLEDS.

MSBA Responsibilities

• Consult on alignment of Q-comp and Teacher Licensure.

• Make recommendations to MDE Commissioner, along with other stakeholders, on the use of restrictive procedures.

• Appoint school board members to Advisory Panel Innovation Pilot Project (districts apply by April 1).

• Develop/revise a model policy to ensure that nonpublic data are only accessed by those whose job requires it.

• Consult on improving academic performance of underachieving students through multi-tier system of early intervention.

• Appoint a representative to the School Safety Technical Assistance Council.

MDE Rule Making & Academic Review Authority

• MDE Commissioner to use expedited rulemaking process to make special education case load rule changes.

• MDE Commissioner has authority to revise, on a permissive basis, the academic standards on the same review schedule already in statute. The ten-year revision and review schedule passed in the 2013 session begins following completion of the existing timeline in current statute.

• MDE must annually (by Feb. 1) submit to the legislature a status report on the statewide online special education reporting system.

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We hope you found our MSBA 2014 Legislative Summary helpful in your important role as a school board member. Thank you for your help in “Standing Up 4 Public Schools” throughout the 2014 legislative session. As always, please contact us with any questions or concerns. We look forward to working with you in the 2015 legislative session.

Grace Keliher, Director of Government Relations, [email protected]

Denise Dittrich, Associate Director of Government Relations, [email protected]

Snezhana Bessonov, Consultant, [email protected]

Barbara Hoffman, Administrative Assistant to Government Relations, [email protected]