MN SF1723

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 costs, staff turnover, training, and enforcement expenses.

Mandates that all service contracts include minimum wage rates equivalent to or greater than current employee wages, health benefits equivalent to current employee benefits or equivalent monetary payments, and retirement or other benefits equivalent to current employee benefits or equivalent monetary payments.

Allows school districts to enter initial service contracts only if the analysis shows anticipated savings of 5 percent or larger over the contract term compared to current employee wage and benefit costs; initial contracts limited to two-year maximum terms.

Permits contract renewals only if actual costs did not exceed 102 percent of estimated costs, calculated costs are less than comparable employee wage and benefit costs from the previous equivalent period, and there are no higher rates of negative quality of service incidents compared to when employees performed the work.

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.