1.1 	A bill for an act
1.2 	relating to education; providing a financial incentive for school districts to enter 
1.3 	into timely employment contracts;amending Minnesota Statutes 2006, section 
1.4 	123B.05, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 123B.05, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 1a.Financial incentive; timely employment contracts. (a) A public 
1.9 	employer that signs a collective bargaining agreement with the exclusive representative of 
1.10 	the teachers before the first student contact day in the fall is eligible to receive a financial 
1.11 	incentive from the general fund that equals $35 times the number of adjusted pupil units:
1.12 	(1) for a district, that are in the district during that fiscal year; or
1.13 	(2) for a public employer other than a district, that are in programs provided by the 
1.14 	employer during the preceding fiscal year.
1.15 	The department must determine the number of full-time equivalent resident pupil units in 
1.16 	the programs.
1.17 	(b) Public employers are also eligible to receive the financial incentive under 
1.18 	paragraph (a) if:
1.19 	(1) the school board and the exclusive representative of the teachers certify in 
1.20 	writing to the commissioner of mediation services that they have entered into a tentative 
1.21 	agreement before the first student contact day in the fall, to the extent the parties enter into 
1.22 	a final contract based on the tentative agreement certified to the commissioner; or
2.1 	(2) the school board and the exclusive representative of the teachers agree, before 
2.2 	the first student contact day in the fall, to binding interest arbitration of items in dispute, to 
2.3 	the extent the parties enter into a contract to confirm the results of the arbitrator's decision.

2.4 	EFFECTIVE DATE. This section is effective July 1, 2007.