1.1 	A bill for an act
1.2 	relating to education finance; relieving certain districts of a contract penalty;
1.3 	amending Minnesota Statutes 2008, section 123B.05, by adding a subdivision.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2008, section 123B.05, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 2a.Penalty reduction for financial hardship. If a school district receives a 
1.8 	penalty under subdivision 2, the commissioner may reduce the penalty by up to 50 percent 
1.9 	of the amount per adjusted pupil unit defined in subdivision 4 if the school district and 
1.10 	the exclusive representative of the teachers both sign a collective bargaining agreement 
1.11 	on or before April 15 and the district and the exclusive representative of the teachers file 
1.12 	an appeal with the commissioner declaring a financial hardship. The commissioner must 
1.13 	make a determination within 60 days of the appeal.