1.1                          A bill for an act 
  1.2             relating to education; removing the time period 
  1.3             limitation for school district agreements; amending 
  1.4             Minnesota Statutes 1998, section 123B.02, subdivision 
  1.5             3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 123B.02, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
  1.10  SUPPORT.] (a) A district must not be required by any type of 
  1.11  formal or informal agreement except an agreement to provide 
  1.12  building space according to paragraph (f), including a joint 
  1.13  powers agreement, or membership in any cooperative unit defined 
  1.14  in section 123A.24, subdivision 2, to participate in or provide 
  1.15  financial support for the purposes of the agreement for a time 
  1.16  period in excess of four fiscal years, or the time period set 
  1.17  forth in this subdivision.  Any agreement, part of an agreement, 
  1.18  or other type of requirement to the contrary is void. 
  1.19     (b) This subdivision shall not affect the continued 
  1.20  liability of a district for its share of bonded indebtedness or 
  1.21  other debt incurred as a result of any agreement before July 1, 
  1.22  1993.  The district is liable only until the obligation or debt 
  1.23  is discharged and only according to the payment schedule in 
  1.24  effect on July 1, 1993, except that the payment schedule may be 
  1.25  altered for the purpose of restructuring debt or refunding bonds 
  2.1   outstanding on July 1, 1993, if the annual payments of the 
  2.2   district are not increased and if the total obligation of the 
  2.3   school district for its share of outstanding bonds or other debt 
  2.4   is not increased. 
  2.5      (c) To cease participating in or providing financial 
  2.6   support for any of the services or activities relating to the 
  2.7   agreement or to terminate participation in the agreement, the 
  2.8   board must adopt a resolution and notify other parties to the 
  2.9   agreement of its decision on or before February 1 of any year.  
  2.10  The cessation or withdrawal shall be effective June 30 of the 
  2.11  same year except that for a member of an education district 
  2.12  organized under sections 123A.15 to 123A.19 or an intermediate 
  2.13  district organized under chapter 136D, cessation or withdrawal 
  2.14  shall be effective June 30 of the following fiscal year.  At the 
  2.15  option of the board, cessation or withdrawal may be effective 
  2.16  June 30 of the following fiscal year for a district 
  2.17  participating in any type of agreement.  
  2.18     (d) Before issuing bonds or incurring other debt, the 
  2.19  governing body responsible for implementing the agreement must 
  2.20  adopt a resolution proposing to issue bonds or incur other debt 
  2.21  and the proposed financial effect of the bonds or other debt 
  2.22  upon each participating district.  The resolution must be 
  2.23  adopted within a time sufficient to allow the board to adopt a 
  2.24  resolution within the time permitted by this paragraph and to 
  2.25  comply with the statutory deadlines set forth in sections 
  2.26  122A.40, 122A.41, and 123A.33.  The governing body responsible 
  2.27  for implementing the agreement shall notify each participating 
  2.28  board of the contents of the resolution.  Within 120 days of 
  2.29  receiving the resolution of the governing body, the school board 
  2.30  of the participating district shall adopt a resolution stating: 
  2.31     (1) its concurrence with issuing bonds or incurring other 
  2.32  debt; 
  2.33     (2) its intention to cease participating in or providing 
  2.34  financial support for the service or activity related to the 
  2.35  bonds or other debt; or 
  2.36     (3) its intention to terminate participation in the 
  3.1   agreement. 
  3.2      A board adopting a resolution according to clause (1) is 
  3.3   liable for its share of bonded indebtedness or other debt as 
  3.4   proposed by the governing body implementing the agreement.  A 
  3.5   school board adopting a resolution according to clause (2) is 
  3.6   not liable for the bonded indebtedness or other debt, as 
  3.7   proposed by the governing body, related to the services or 
  3.8   activities in which the district ceases participating or 
  3.9   providing financial support.  A board adopting a resolution 
  3.10  according to clause (3) is not liable for the bonded 
  3.11  indebtedness or other debt proposed by the governing body 
  3.12  implementing the agreement. 
  3.13     (e) After July 1, 1993, a district is liable according to 
  3.14  paragraph (d) for its share of bonded indebtedness or other debt 
  3.15  incurred by the governing body implementing the agreement to the 
  3.16  extent that the bonds or other debt are directly related to the 
  3.17  services or activities in which the district participates or for 
  3.18  which the district provides financial support.  The district has 
  3.19  continued liability only until the obligation or debt is 
  3.20  discharged and only according to the payment schedule in effect 
  3.21  at the time the governing body implementing the agreement 
  3.22  provides notice to the school board, except that the payment 
  3.23  schedule may be altered for the purpose of refunding the 
  3.24  outstanding bonds or restructuring other debt if the annual 
  3.25  payments of the district are not increased and if the total 
  3.26  obligation of the district for the outstanding bonds or other 
  3.27  debt is not increased. 
  3.28     (f) A district that is a member of a cooperative unit as 
  3.29  defined in section 123A.24, subdivision 2, may obligate itself 
  3.30  to participate in and provide financial support for an agreement 
  3.31  with a cooperative unit to provide school building space for a 
  3.32  term not to exceed two years with an option on the part of the 
  3.33  district to renew for an additional two years.  
  3.34     (g) Notwithstanding any limitations imposed under this 
  3.35  subdivision, a school district may, according to section 
  3.36  123B.51, subdivision 4, enter into a lease of all or a portion 
  4.1   of a schoolhouse that is not needed for school purposes, 
  4.2   including, but not limited to, a lease with a term of more than 
  4.3   one year. 
  4.4      (h) This subdivision applies only to agreements entered 
  4.5   into between July 1, 1993, and June 30, 1999.