1.1 	A bill for an act
1.2 	relating to education; adding an inflationary adjustment for the alternative teacher 
1.3 	compensation revenue;amending Minnesota Statutes 2006, section 122A.415, 
1.4 	subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 122A.415, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
1.9 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
1.10 	application approved by the commissioner is eligible for alternative teacher compensation 
1.11 	revenue.
1.12 	(b) For school district and intermediate school district applications, the commissioner 
1.13 	must consider only those applications to participate that are submitted jointly by a 
1.14 	district and the exclusive representative of the teachers. The application must contain an 
1.15 	alternative teacher professional pay system agreement that:
1.16 	(1) implements an alternative teacher professional pay system consistent with 
1.17 	section 122A.414; and
1.18 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
1.19 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
1.20 	district may enter into a contract for a term of two or four years.
1.21 	Alternative teacher compensation revenue for a qualifying school district or site in 
1.22 	which the school board and the exclusive representative of the teachers agree to place 
1.23 	teachers in the district or at the site on the alternative teacher professional pay system 
1.24 	equals $260 times the annual inflationary increases as calculated under paragraph (e) times 
2.1 	the number of pupils enrolled at the district or site on October 1 of the previous fiscal year. 
2.2 	Alternative teacher compensation revenue for a qualifying intermediate school district 
2.3 	must be calculated under section 126C.10, subdivision 34, paragraphs (a) and (b).
2.4 	(c) For a newly combined or consolidated district, the revenue shall be computed 
2.5 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
2.6 	into the combination or consolidation. The commissioner may adjust the revenue 
2.7 	computed for a site using prior year data to reflect changes attributable to school closings, 
2.8 	school openings, or grade level reconfigurations between the prior year and the current 
2.9 	year.
2.10 	(d) The revenue is available only to school districts, intermediate school districts, 
2.11 	school sites, and charter schools that fully implement an alternative teacher professional 
2.12 	pay system by October 1 of the current school year.
2.13 	(e) For purposes of this subdivision, for fiscal year 2009 and later, "inflationary 
2.14 	increase" means one plus the percentage change in the Consumer Price Index for urban 
2.15 	consumers, as prepared by the United States Bureau of Labor Standards, for the current 
2.16 	fiscal year to fiscal year 2008.