1.1 	A bill for an act
1.2 	relating to education; providing for a school board right to unilaterally contract 
1.3 	for district services; amending Minnesota Statutes 2004, section 123B.02, 
1.4 	subdivision 14.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 123B.02, subdivision 14, is amended to 
1.7 	read:
1.8 		Subd. 14.Employees; contracts for services. (a) The board may employ and 
1.9 	discharge necessary employees and may contract for other services. Notwithstanding 
1.10 	any other law to the contrary, it shall be an inherent managerial right of the board to 
1.11 	unilaterally contract or subcontract for services unless the power to contract or subcontract 
1.12 	is specifically prohibited by collective bargaining agreements with all units of affected 
1.13 	employees.
1.14 	(b) Notwithstanding any law to the contrary, the board must notify the exclusive 
1.15 	representative of the board's intent to contract with other persons or entities for services 
1.16 	after the termination date of the current collective bargaining agreement.  The board and 
1.17 	exclusive representative must mediate the effects of the board's decision to contract with 
1.18 	another person or entity for 45 days.  After 45 days, either party may declare an impasse.
1.19 	(c) For the purposes of paragraph (b), the mediation period begins on the day after 
1.20 	the commissioner of the Bureau of Mediation Services receives a request for mediation.
1.21 	(d) Paragraphs (b) and (c) apply to all agreements between the board and collective 
1.22 	bargaining representatives except teachers as defined in section 179A.03, subdivision 18, 
1.23 	and school superintendents, assistant superintendents, school principals, and assistant 
1.24 	principals.

2.1 	EFFECTIVE DATE. This section is effective for contracts negotiated and entered 
2.2 	into on or after July 1, 2005, and contracts beginning negotiation, but not entered into, 
2.3 	before July 1, 2005.