MN HF2272

Requires school districts to conduct best value analysis before entering service contracts for paraprofessional, transportation, nutrition, custodial, and clerical services, considering short-term and long-term costs including transition, training, and enforcement expenses.

Mandates service contracts include minimum wage rates equivalent to or greater than current employee wages, plus health benefits and retirement benefits equal to or exceeding those of employees currently performing the work.

Allows initial service contracts only if analysis shows anticipated savings of 5 percent or larger over the contract term compared to current employee wage and benefit costs, with maximum contract length of two years.

Requires school board review of estimated costs and contractor performance history (price increases, workers' compensation claims, safety violations) before executing contracts.

Exempts temporary and nonrecurring contracts that do not displace employees, contracts for supervisory or professional employees, and contracts under $25,000; effective July 1, 2014.