2008 -- H 7543

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2008

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A N A C T

RELATING TO EDUCATION -- UNIFORM TEACHERS CONTRACTS

     Introduced By: Representatives Loughlin, McManus, Ehrhardt, Story, and Amaral

     Date Introduced: February 26, 2008

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 16-2 of the General Laws entitled "School Committees and

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Superintendents" is hereby amended by adding thereto the following section:

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     16-2-35. Statewide teacher contract. -- (a) Effective July 1, 2009, there shall be a

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uniform statewide teacher contract for purposes of the employment of newly hired teachers in any

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public school within this state. Said contract shall be prepared by the board of regents of

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elementary and secondary education, who shall conduct hearings throughout the state on the form

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and content of such contract prior to issuing a final form of such contract. The provisions of this

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contract shall include, but not be limited to:

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     (i) The remuneration of each teacher for their professional services, including the rate of

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pay, the use, amount, and step, if any, used, as well as any incentives and/or other basis for merit-

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based pay;

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     (ii) A requirement that said teachers who elect to participate in the teacher's retirement

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shall participate in a defined distribution plan as set forth in section 16-16-44 and shall not

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participate in a defined benefit plan system as provided for in Chapter 36-10.

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     (b) Effective on July 1, 2009, all teachers newly hired by a public school district or

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system shall be hired using the uniform statewide teacher contract established pursuant to the

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provisions of this section. Provided, that any teacher hired by a public school district or system

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during a time when a contract and/or collective bargaining agreement between the hiring

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authority and a teacher's union representing the teachers in that particular school district is in

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effect at the time of said teacher's date of hire and which contract was in effect prior to July 1,

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2008, shall not be subject to being hired pursuant to the provisions of the uniform statewide

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teacher's contract. Provided, further, however, that in any such district where such a contract or

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collective bargaining agreement is in effect on July 1, 2008, any teacher newly hired after the

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expiration of that contract and/or collective bargaining agreement shall be subject to the uniform

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statewide teacher's contract.

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     (c) No teacher employed by a school district prior to July 1, 2009 shall be subject to the

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uniform statewide teacher contract so long as that teacher remains continuously employed by the

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same school district. In the event a teacher leaves the school district and becomes employed by

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another school district, that teacher shall be subject to hire in the new district under the uniform

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statewide teacher contract. Provided, that any teacher vested in the state employee's retirement

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system at the time of such employment in a new district shall not lose any benefits accrued and

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vested at the time of such change of employment, but shall thereafter be eligible to participate

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only in the defined contribution plan established pursuant to section 16-16-44.

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     (d) The uniform statewide teacher contract shall be distributed to the various hiring

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authorities among the school districts in the state and shall be used thereby. Provided, that the

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decision whether to hire or terminate any new teacher shall remain with the local school district,

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and the use of the uniform statewide teacher contract shall not render the teacher an employee of

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the state. Any teacher hired using said contract shall remain an employee of the hiring authority.

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(e) Any school committee or regional school committee may, in its sole discretion, offer

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additional compensation or remuneration or other benefits in addition to what is provided for in

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the uniform statewide teacher contract, as an inducement to employment or continued

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employment of any certified teacher. Provided, such additional benefits, remuneration, or

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compensation shall not be subject to or a result of collective bargaining.

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     SECTION 2. Chapter 16-16 of the General Laws entitled "Teachers' Retirement" is

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hereby amended by adding thereto the following section:

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     16-16-44. Newly hired teachers to participate only in defined contribution plan. -- (a)

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Effective July 1, 2009, all teachers newly hired and subject to the uniform statewide teacher's

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contract established pursuant to the provisions of section 16-2-35 who elect to participate in the

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statewide teacher's retirement system shall do so by membership in a defined contribution plan to

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be established by the state retirement board established pursuant to the provisions of chapter 36-8.

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Such teachers shall only participate in the defined contribution plan and shall be eligible and shall

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not participate in the defined benefit plan set forth in the provisions of chapters 36-8 through 36-

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10, including, but not limited to, the provisions of 36-10-1 through 36-10-4 inclusive. A teacher

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shall be given the option of not participating in the plan and in such event, no deduction shall be

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made from the teacher's salary or pay to fund the defined contribution plan established by this

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section.

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     (b) As used herein, a "defined contribution plan" shall refer to a retirement plan that

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provides an individual account for each participant. The benefits shall be based on the amount

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contributed and may be affected by income, expenses, gains and losses.

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     (c) The state retirement board shall negotiate with the bargaining unit for teachers in each

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applicable school district as to the rates and amounts of contributions to be made, including, but

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not limited to, minimum contributions, if any, by the state and/or the individual employee, to the

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defined contribution plan, and the amount of all such contributions shall be set by collective

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bargaining. By way of example only, it is the intent of the general assembly to create a retirement

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plan for newly hired teachers which more closely resembles defined contribution plans such as

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401(K) plans, 403(b) plans, employee stock ownership plans and profit sharing plans.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO EDUCATION -- UNIFORM TEACHERS CONTRACTS

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     This act would require the creation of a uniform statewide teacher contract for all

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teachers newly hired after July 1, 2009. This act would also provide that such teachers would be

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eligible to participate in a defined contribution plan to be established by the retirement board, and

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would not participate in the current defined benefit plan system.

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     This act would take effect upon passage.

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