1.1 	A bill for an act
1.2 	relating to local government; providing an alternative method of detachment 
1.3 	for hospital districts;amending Minnesota Statutes 2010, section 447.38, 
1.4 	subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 447.38, subdivision 2, is amended to read:
1.7 		Subd. 2.Detachment of city or town; same procedure; criteria. (a) A city or 
1.8 	town included in the hospital district may be detached from it by the same procedure 
1.9 	provided for dissolution of the district.following the procedures in this subdivision. 
1.10 	The city or town seeking to be detached from the hospital district must submit a petition 
1.11 	stating the grounds for detachment, signed by an authorized officer of the governing body 
1.12 	of the city or town seeking detachment from the hospital district, and accompanied by a 
1.13 	resolution in support of detachment adopted by the governing body of the city or town.
1.14 	(b) The petition must be submitted first to the hospital district board. The board must 
1.15 	hold a hearing on the petition and evaluate it using the factors in paragraph (d) and issue 
1.16 	an order granting or denying the petition.
1.17 	(c) If the hospital district board denies the petition, the city or town may file 
1.18 	the petition, along with the board's order, with the Office of Administrative Hearings, 
1.19 	providing a copy to the hospital district board. The Office of Administrative Hearings 
1.20 	must hold a hearing and evaluate the petition using the factors in paragraph (d).
1.21 	(d) Factors for evaluating whether to grant or deny a petition for detachment are:
1.22 	(1) the benefit or harm to the city or town and its taxpayers if the petition is granted;
1.23 	(2) the benefit or harm to the hospital district if the petition is granted;
2.1 	(3) whether the city or town is unique in comparison to other governmental units 
2.2 	in the district;
2.3 	(4) whether there has been a change in circumstances since formation of the district; 
2.4 	and
2.5 	(5) whether the petitioning city or town and its taxpayers have been or are treated 
2.6 	equitably in payment to the district in comparison to any benefit conferred.
2.7 	The hospital district or Office of Administrative Hearings must order detachment of the 
2.8 	petitioning city or town if it finds that there has been a significant change in circumstances 
2.9 	which makes it inequitable for the petitioning city or town to remain in the district under 
2.10 	the current circumstances or if it determines that the taxes levied in the city or town are 
2.11 	disproportionate to the benefits received.
2.12 	(e) On detachment, all taxable property within the detached area remains subject 
2.13 	to taxation for any existing bonded indebtedness of the district to the same extent as it 
2.14 	would have been if not detached. The property remains subject to taxation for any other 
2.15 	existing indebtedness of the district incurred for any purpose beneficial to the area to the 
2.16 	extent the hospital board or Office of Administrative Hearings finds just and equitable, to 
2.17 	be specified in the order for detachment. The proper officers shall levy further taxes on 
2.18 	the property accordingly.