1.1 	A bill for an act
1.2 	relating to education; establishing education
1.3 	administrative districts; proposing coding for new law
1.4 	in Minnesota Statutes, chapter 123A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [123A.10] EDUCATION ADMINISTRATIVE DISTRICTS.
1.7 		Subdivision 1.Administrative efficiency. An education
1.8 	administrative district is intended to increase the efficiency
1.9 	of administrative services for kindergarten through grade 12
1.10 	public schools by combining the administrative functions of
1.11 	multiple school districts while preserving independent school
1.12 	district control of individual school sites.
1.13 		Subd. 2.Agreement to establish education administrative
1.14 	district. School boards that meet the requirements of
1.15 	subdivision 3 may enter into a written agreement to establish an
1.16 	education administrative district.  The agreement must include
1.17 	methods to improve the efficient delivery of administrative
1.18 	services.  A majority of the full board of each member district
1.19 	that is a party to the agreement must adopt the agreement and
1.20 	any subsequent modifications of the agreement.
1.21 		Subd. 3.Requirements for formation. (a) At the time an
1.22 	education administrative district is established, it must be
1.23 	composed of at least:
1.24 	(1) five school districts;
1.25 	(2) three school districts with a total of at least 5,000
2.1 	pupils in average daily membership; or 
2.2 	(3) three school districts occupying a total of at least
2.3 	2,000 square miles.
2.4 	(b) Members of an education administrative district must be
2.5 	contiguous unless paragraph (c) applies.  School districts that
2.6 	are parties to a cooperation agreement under section 123A.32 may
2.7 	belong to an education administrative district as a single unit
2.8 	only.
2.9 	(c) A noncontiguous school district may be a member of an
2.10 	education administrative district if the commissioner determines
2.11 	that:
2.12 	(1) a district located between the education administrative
2.13 	district and the noncontiguous district is unwilling to become a
2.14 	member; or 
2.15 	(2) a noncontiguous configuration of member districts has
2.16 	sufficient technological or other resources to efficiently
2.17 	deliver administrative services.
2.18 		Subd. 4.Commissioner review and comment. Before
2.19 	entering into an agreement to establish an education
2.20 	administrative district, the school boards of the proposed
2.21 	member districts jointly must submit the proposed agreement to
2.22 	the commissioner for review and comment.  The commissioner must
2.23 	submit a review and comment on the educational and economic
2.24 	advisability of the proposed agreement to the affected school
2.25 	boards within 60 days of receiving the proposal.  If the
2.26 	commissioner submits a negative review and comment, the
2.27 	districts do not qualify for levy authority under section
2.28 	123A.12, subdivision 5.
2.29 		Subd. 5.Notice and public hearing on proposed
2.30 	agreement. Before entering into an agreement to establish an
2.31 	education administrative district, the school boards of the
2.32 	proposed member districts each must publish the commissioner's
2.33 	review and comment and a summary of the proposed agreement and
2.34 	its anticipated effect upon the district at least once in a
2.35 	newspaper of general circulation in the district.  The board
2.36 	must conduct a public hearing on the proposed agreement not more
3.1 	than ten days after the notice is published and at least 30 days
3.2 	before entering into the agreement.
3.3 	
EFFECTIVE DATE. This section is effective for the
3.4 	2005-2006 school year and later.

3.5 	Sec. 2. [123A.11] EDUCATION ADMINISTRATIVE DISTRICT
3.6 	BOARD.
3.7 		Subdivision 1.School district representation. The
3.8 	education administrative district board is composed of at least
3.9 	one representative appointed by the school board of each member
3.10 	district.  Each representative must be a member of the
3.11 	appointing school board.  Each representative serves at the
3.12 	pleasure of the appointing board and may be recalled by a
3.13 	majority vote of the appointing board.  Each representative
3.14 	serves for the term specified in the agreement.  The board must
3.15 	select its officers from among its members and determine the
3.16 	officers' terms.  The board must adopt bylaws for conducting
3.17 	business.  The board may conduct public meetings using
3.18 	interactive television if it complies with chapter 13 in each
3.19 	location where board members are present.
3.20 		Subd. 2.Providing administrative services. An education
3.21 	administrative district board must implement the agreement for
3.22 	efficiently delivering needed administrative services under
3.23 	section 123A.12 to the education administrative district.
3.24 		Subd. 3.Personnel. The board may employ personnel
3.25 	needed to provide administrative services to the education
3.26 	administrative district.  Personnel employed by the education
3.27 	administrative district are eligible to participate in
3.28 	retirement programs.  Notwithstanding section 123B.143,
3.29 	subdivision 1, a district member of an education administrative
3.30 	district must contract with the education administrative
3.31 	district to obtain superintendent services.  The person
3.32 	providing superintendent services need not be an employee of the
3.33 	education administrative district or a member district at the
3.34 	time the person contracts to provide superintendent services.
3.35 		Subd. 4.Contracts. The education administrative
3.36 	district board may contract with school districts and other
4.1 	public and private agencies to provide needed administrative
4.2 	services in the education administrative district.
4.3 		Subd. 5.General law. The education administrative
4.4 	district board is governed by section 471.59 unless specifically
4.5 	provided otherwise under sections 123A.10 to 123A.12.
4.6 		Subd. 6.Annual report. After each of its first five
4.7 	years of operation, the education administrative district board
4.8 	must submit an annual report to its member districts and the
4.9 	commissioner about the education administrative district's
4.10 	activities, including an analysis of its administrative costs
4.11 	and efficiencies.
4.12 	
EFFECTIVE DATE. This section is effective for the
4.13 	2005-2006 school year and later.

4.14 	Sec. 3. [123A.12] EDUCATION ADMINISTRATIVE DISTRICT
4.15 	AGREEMENT.
4.16 		Subdivision 1.Implementation; review. An education
4.17 	administrative district board must implement the agreement of
4.18 	its member districts under section 123A.10, subdivision 2, to
4.19 	provide efficient administrative services to the education
4.20 	administrative district.  The board must review the agreement
4.21 	annually and propose needed modifications to its member
4.22 	districts.
4.23 		Subd. 2.Administrative services. (a) Consistent with
4.24 	section 123B.143, subdivision 1, the agreement must allow the
4.25 	education administrative district board to select one
4.26 	superintendent to serve the education administrative district
4.27 	for a specified term.
4.28 	(b) The agreement must specify other noninstructional
4.29 	services the education administrative district intends to
4.30 	provide to member districts, including, among other services,
4.31 	business management, human resources, payroll, food service,
4.32 	buildings and ground maintenance, pupil transportation,
4.33 	technology coordination, curriculum coordination, community
4.34 	education, nursing services, student records, student
4.35 	administrative services, and school building administration.
4.36 		Subd. 3.Timing and duration. (a) The initial agreement
5.1 	must contain a timeline for implementing the agreement.
5.2 	(b) The initial agreement must be for a period of at least
5.3 	three years.  After completing the first two years, the
5.4 	agreement may be extended by a majority vote of the full board
5.5 	of each member district.
5.6 		Subd. 4.Finances. The initial agreement must:
5.7 	(1) include a three-year budget projection comparing
5.8 	existing administrative services and costs with proposed
5.9 	administrative services and costs for each year;
5.10 	(2) specify the retirement and severance incentives,
5.11 	consistent with section 123A.48, subdivision 23, that may be
5.12 	offered to licensed and nonlicensed staff, and how these costs
5.13 	will be apportioned among member districts;
5.14 	(3) specify other start-up costs for the education
5.15 	administrative district and how these costs will be apportioned
5.16 	among member districts;
5.17 	(4) specify the estimated amounts each member district will
5.18 	levy under subdivision 5 for the specified costs in clauses (2)
5.19 	and (3); and 
5.20 	(5) specify an equitable distribution formula for the
5.21 	education administrative district board to assess and certify a
5.22 	proportionate share of expenses to member districts, which must
5.23 	remit their assessment to the education administrative district
5.24 	board within 30 days of receiving the certified assessment.
5.25 		Subd. 5.Levy. A school district that is a member of an
5.26 	education administrative district may levy an amount equal to
5.27 	the member district's share of costs approved by the
5.28 	commissioner for retirement and severance incentives and other
5.29 	start-up costs included in the initial agreement under
5.30 	subdivision 4, clauses (2) and (3), over a term of not more than
5.31 	36 months.
5.32 		Subd. 6.Reports to education department. Member school
5.33 	districts jointly may submit reports and provide required
5.34 	information to the department.  The joint reports clearly must
5.35 	attribute information, including expenditures for the education
5.36 	administrative district, to individual member districts.
6.1 		Subd. 7.Additional and withdrawing districts. (a) Upon
6.2 	approval by a majority vote of a district school board and the
6.3 	education administrative district board, an adjoining school
6.4 	district may become a member of an education administrative
6.5 	district and is governed by this section and the education
6.6 	administrative district agreement in effect.  A noncontiguous
6.7 	district may become a member with the commissioner's approval
6.8 	based on the criteria under section 123A.10, subdivision 3,
6.9 	paragraph (c).  A new member added to an education
6.10 	administrative district may levy for approved retirement and
6.11 	severance incentive costs under subdivision 5.
6.12 	(b) After three consecutive years of membership, a member
6.13 	district, by majority vote of its full board and after complying
6.14 	with the applicable terms in the education administrative
6.15 	district agreement, may withdraw from the education
6.16 	administrative district and the agreement at the end of the
6.17 	subsequent fiscal year.
6.18 		Subd. 8.Dissolution. After the first three years of the
6.19 	education administrative district, the boards of each member
6.20 	district may agree to dissolve the education administrative
6.21 	district at the end of any fiscal year or at an earlier,
6.22 	mutually agreeable time.  Member districts must dissolve the
6.23 	education administrative district according to the applicable
6.24 	provisions in the agreement establishing the education
6.25 	administrative district.  The dissolution must not affect the
6.26 	continuing liability of any district formerly a member of the
6.27 	education administrative district for continuing obligations,
6.28 	including employment benefits.
6.29 	
EFFECTIVE DATE. This section is effective for the
6.30 	2005-2006 school year and later.