HF 1000

as introduced - 87th Legislature (2011 - 2012) Posted on 03/09/2011 10:13am

A bill for an act
relating to local government; providing an alternative method of detachment
for hospital districts; amending Minnesota Statutes 2010, section 447.38,
subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 447.38, subdivision 2, is amended to read:

Subd. 2.

Detachment of city or town; deleted text begin same deleted text end procedure new text begin ; criteria new text end .

new text begin (a) new text end A city or
town included in the hospital district may be detached from it deleted text begin by the same procedure
provided for dissolution of the district. deleted text end new text begin following the procedures in this subdivision.
The city or town seeking to be detached from the hospital district must submit a petition
stating the grounds for detachment, signed by an authorized officer of the governing body
of the city or town seeking detachment from the hospital district, and accompanied by a
resolution in support of detachment adopted by the governing body of the city or town.
new text end

new text begin (b) The petition must be submitted first to the hospital district board. The board must
hold a hearing on the petition and evaluate it using the factors in paragraph (d) and issue
an order granting or denying the petition.
new text end

new text begin (c) If the hospital district board denies the petition, the city or town may file
the petition, along with the board's order, with the Office of Administrative Hearings,
providing a copy to the hospital district board. The Office of Administrative Hearings
must hold a hearing and evaluate the petition using the factors in paragraph (d).
new text end

new text begin (d) Factors for evaluating whether to grant or deny a petition for detachment are:
new text end

new text begin (1) the benefit or harm to the city or town and its taxpayers if the petition is granted;
new text end

new text begin (2) the benefit or harm to the hospital district if the petition is granted;
new text end

new text begin (3) whether the city or town is unique in comparison to other governmental units
in the district;
new text end

new text begin (4) whether there has been a change in circumstances since formation of the district;
and
new text end

new text begin (5) whether the petitioning city or town and its taxpayers have been or are treated
equitably in payment to the district in comparison to any benefit conferred.
new text end

new text begin The hospital district or Office of Administrative Hearings must order detachment of the
petitioning city or town if it finds that there has been a significant change in circumstances
which makes it inequitable for the petitioning city or town to remain in the district under
the current circumstances or if it determines that the taxes levied in the city or town are
disproportionate to the benefits received.
new text end

new text begin (e) new text end On detachment, all taxable property within the detached area remains subject
to taxation for any existing bonded indebtedness of the district to the same extent as it
would have been if not detached. The property remains subject to taxation for any other
existing indebtedness of the district incurred for any purpose beneficial to the area to the
extent the new text begin hospital new text end board new text begin or Office of Administrative Hearings new text end finds just and equitable, to
be specified in the order for detachment. The proper officers shall levy further taxes on
the property accordingly.