Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                         CHAPTER 23-H.F.No. 470 
           An act relating to education; authorizing the 
          establishment of joint vocational technical districts; 
          providing for a governing board; authorizing 
          post-secondary and adult vocational programs, 
          secondary educational programs, and secondary 
          services; providing for separate bargaining units and 
          certain other labor issues; transferring all school 
          district real and personal property to the joint 
          district; authorizing the joint district to levy for 
          certain purposes; providing for state funding of 
          construction; providing for bonded indebtedness, fund 
          transfers, and debt service; amending Minnesota 
          Statutes 1984, sections 136C.02, subdivisions 6 and 8, 
          and by adding a subdivision; 136C.41, by adding a 
          subdivision; 136C.44; and 275.125, subdivisions 1 and 
          14a; proposing coding for new law as Minnesota 
          Statutes, chapter 136E. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 136C.02, 
subdivision 6, is amended to read: 
    Subd. 6.  [DISTRICT.] "District" means a school district 
providing post-secondary vocational education or, an 
intermediate district, or a joint district.  
    Sec. 2.  Minnesota Statutes 1984, section 136C.02, 
subdivision 8, is amended to read: 
    Subd. 8.  [SCHOOL BOARD.] "School board" means the school 
board of a district and, in the case of an intermediate 
district, the board of the an intermediate district, or the 
board of a joint district. 
    Sec. 3.  Minnesota Statutes 1984, section 136C.02, is 
amended by adding a subdivision to read: 
    Subd. 9.  [JOINT DISTRICT.] "Joint district" means a joint 
vocational technical district established under section 6. 
    Sec. 4.  Minnesota Statutes 1984, section 136C.41, is 
amended by adding a subdivision to read: 
    Subd. 1a.  (a) For joint vocational technical districts 
formed under sections 6 to 15 in which the joint district holds 
the title to the AVTI, the state portion of debt service costs 
is the entire amount necessary to make payments due for each 
school year ending June 30 with respect to qualifying bonds 
issued to finance post-secondary vocational facilities and 
interest thereon, reduced by the lesser of: 
    (1) the local share of all principal, interest, and 
redemption premiums; or 
    (2) the amount escrowed for debt service under section 15, 
subdivision 2.  
    (b) The state portion of debt service costs must not be 
less than what would have been paid under subdivision 1.  For 
the purpose of this subdivision, qualifying bonds include the 
same bonds described as qualifying bonds in subdivision 1. 
    Sec. 5.  Minnesota Statutes 1984, section 136C.44, is 
amended to read: 
    136C.44 [VOCATIONAL TECHNICAL BUILDING APPROPRIATIONS.] 
    Money appropriated from the state building fund to the 
state board of vocational technical education for post-secondary 
vocational technical construction in school districts shall be 
used for grants to school districts for the acquisition and 
betterment of land, buildings, and capital improvements for area 
vocational technical institutes.  These grants shall only be 
made upon the conditions and in accordance with all standards 
and criteria established in state board rules and in the 
legislative act authorizing the specific post-secondary 
vocational facilities project.  A grant shall cover 85 percent 
of the cost of the post-secondary vocational facilities 
authorized by the specific legislative act, and 15 percent of 
the cost of these facilities shall be financed by the school 
district operating the post-secondary vocational technical 
school, unless otherwise provided by the specific legislative 
act.  A grant to a joint vocational technical district formed 
under sections 6 to 15 must cover 100 percent of the cost, 
unless otherwise provided by the specific legislative act.  No 
local bonds shall be authorized, issued, or sold, nor shall any 
election be held to authorize the issuance of bonds, if the 
proceeds will be used to finance a project for which specific 
legislative approval is required, until after that specific 
legislative approval has been given. 
    Sec. 6.  [136C.60] [DISTRICTS MAY FORM JOINT VOCATIONAL 
TECHNICAL DISTRICT.] 
    Notwithstanding other law, two or more independent school 
districts each operating an area vocational technical institute 
may enter into an agreement to establish a joint vocational 
technical district upon a majority vote of the full membership 
of each of the boards of the districts entering into the 
agreement.  When resolutions approving the agreement have been 
adopted by the boards of two or more districts, the resolutions 
must be filed with the state director of vocational technical 
education and the commissioner of education.  The commissioner 
shall assign an appropriate identification number as provided in 
section 122.03.  
    Sec. 7.  [136C.61] [GOVERNING BOARD.] 
    Subdivision 1.  [MEMBERS.] The district shall be operated 
by a joint vocational technical board, which shall consist of 
the number of members from each of the participating school 
districts specified in the agreement establishing the joint 
vocational technical district.  Board members must be residents 
of the respective school districts represented and may be 
members of the school boards of the respective school 
districts.  The first members shall be appointed by their 
respective school boards.  The agreement may provide for 
election of members to take office at the end of a term of an 
appointed member.  Appointed members serve at the pleasure of 
their respective school boards and are subject to recall by a 
majority vote of the appointing board.  The election of members 
is governed by section 123.32.  Board members shall report at 
least quarterly to their appointing boards on the activities of 
the joint vocational technical district.  
    Subd. 2.  [EX OFFICIO MEMBER.] The director of the joint 
vocational technical district is an ex officio, nonvoting member 
of the joint board.  
    Subd. 3.  [TERMS.] The agreement establishing the joint 
vocational technical district must specify the number of members 
from each participating district who will serve an initial 
one-year term and the number of members from each participating 
district who will serve an initial two-year term.  The 
appointing board shall designate which of the appointees will 
serve the one-year term and which of the appointees will serve 
the two-year term.  Terms of office of the members of the joint 
board expire on June 30.  After the initial term, the terms of 
office of joint board members must be as specified in the 
agreement.  If a vacancy occurs on the joint board, it must be 
filled by the appropriate school board for the remainder of the 
unexpired term.  A person appointed to the joint board qualifies 
as a board member by filing with the director of the joint board 
a written certificate of appointment from the member's 
appointing board.  
    Subd. 4.  [ORGANIZATIONAL MEETINGS.] The first meeting of 
the first joint board must be at a time mutually agreed to by 
the members appointed by the boards of the participating school 
districts.  Thereafter the joint board shall conduct its 
organizational meeting in July of each year when notified of the 
meeting by the director of the joint vocational technical 
district.  At the organizational meeting, the officers of the 
joint vocational technical district for the current year shall 
be chosen and other necessary organizational business shall be 
conducted.  
    Subd. 5.  [OFFICERS.] The officers are a chair, vice-chair, 
clerk, and treasurer.  The chair shall preside at all meetings 
of the joint board.  In the absence of the chair, the vice-chair 
shall preside.  The clerk shall keep a complete record of the 
minutes of each meeting and the treasurer is the custodian of 
the funds of the joint vocational technical district.  Insofar 
as applicable, board members and officers of the joint 
vocational technical district are governed by the laws relating 
to board members and officers of independent school districts. 
    Subd. 6.  [QUORUM.] A majority of the joint board is a 
quorum, although a smaller number may adjourn.  
    Sec. 8.  [136C.62] [POWERS AND DUTIES.] 
    Subdivision 1.  [IN GENERAL.] The joint board has the 
powers and duties specified in section 136C.05 and other powers 
specified by law for the board of an independent school 
district, except that a joint board may levy only according to 
sections 13, 15, and 275.125, subdivision 14a. 
    Subd. 2.  [PROVISION OF FACILITIES AND SERVICES.] The duty 
and the function of the joint board is to furnish post-secondary 
and adult vocational education.  The joint board may also 
provide other secondary educational programs or secondary 
services requested by a participating district.  Secondary 
offerings may be provided only under the direction of properly 
licensed personnel.  
    Subd. 3.  [FINANCE.] The joint board shall provide for the 
conduct of the schools, payment of indebtedness, and payment of 
other proper expenses of the district.  
    Subd. 4.  [CONTRACTS.] The joint board shall employ and 
contract with necessary qualified teachers and administrators 
and may discharge them under section 125.12.  The joint board 
may employ and discharge other necessary employees and may 
contract for the purchase or sale of educational and other 
services the joint board considers necessary. 
    Sec. 9.  [136C.63] [LEGAL STATUS OF JOINT BOARD.] 
    Subdivision 1.  [PUBLIC AGENCY.] The joint board is a 
public agency and may receive and spend private, federal, and 
state money made available to it.  
    Subd. 2.  [LIABILITY.] A participating school district has 
no liability for the debts or obligations of the joint 
vocational technical district.  An individual serving as a 
member of the joint board has no individual liability for those 
debts or obligations.  
    Subd. 3.  [APPLICABLE LAWS.] Except as specifically 
provided to the contrary, the organization, operation, 
maintenance, and conduct of the affairs of the joint vocational 
technical district are governed by the general laws relating to 
independent school districts.  
    Sec. 10.  [136C.64] [TEACHERS.] 
    Subdivision 1.  [ASSIGNMENT.] (a) When an independent 
school district becomes a member of the joint vocational 
technical district, a teacher, as defined in section 125.12, 
subdivision 1, employed by a member district and primarily 
assigned as a post-secondary or adult vocational education 
teacher there, shall be assigned to and become an employee of 
the joint vocational technical district without further rights 
to employment in the member district, except that, for a period 
of two years from the date of assignment, teaching vacancies in 
the member district from which the teacher was assigned must be 
offered to the teacher assigned to the joint vocational 
technical district if: 
     (1) the teacher was placed on unrequested leave of absence 
by the joint vocational technical district; 
     (2) the teacher is properly licensed for the position; and 
    (3) a transfer or assignment from a post-secondary or adult 
vocational position to a secondary position would have been 
authorized in the member district under the contract in effect 
at the time of that teacher's assignment to the joint vocational 
technical district.  
     (b) A teacher who has previously been placed on unrequested 
leave of absence from a post-secondary or adult vocational 
education position by an independent school district that 
becomes a member of the joint vocational technical district only 
has reinstatement rights to an available post-secondary or adult 
vocational position in the joint vocational technical district 
and has no further rights to reinstatement to any post-secondary 
or adult vocational position in the member district.  This 
reassignment of employment rights is not a leaving of employment 
for eligibility for payments under section 465.72 or under a 
policy or contract based on that section. 
    Subd. 2.  [EXCLUSIVE REPRESENTATIVE.] The employee 
organization certified as the exclusive representative for the 
teachers in a particular member district who are assigned to the 
joint vocational technical district upon its establishment shall 
continue as the exclusive representative for those teachers 
until that organization is decertified or another organization 
is certified in its place under this subdivision.  After the 
commissioner assigns an identification number to the joint 
vocational technical district, any employee organization may 
petition the director of the bureau of mediation services for a 
certification election proceeding under chapter 179A.  For 
purposes of certification of an exclusive representative, the 
teachers assigned to the joint vocational technical district are 
an appropriate unit of employees. 
    Subd. 3.  [BARGAINING AGREEMENT.] (a) The terms and 
conditions of employment of teachers assigned to the new joint 
vocational technical district from each member district will be 
temporarily governed by the contract executed by the exclusive 
bargaining representative and that particular member district 
until a successor contract is executed between the board of the 
joint vocational technical district and the new exclusive 
bargaining representative.  
     (b) The date of first employment in the new joint 
vocational technical district is the date on which services were 
first performed by the teacher in the member school district 
from which assigned.  Accumulations of sick leave and 
accumulated years of service to determine eligibility for any 
severance pay or early retirement benefits must be credited to 
each employee, subject to any maximum accumulation limitations 
negotiated in the successor contract.  The joint vocational 
technical board shall provide, to transferred teachers, open 
enrollment in all insurance plans with no limitation on 
preexisting conditions.  The successor contract must contain a 
negotiated plan for the placement of teachers on unrequested 
leave of absence in the joint vocational technical district.  
    Subd. 4.  [APPLICABLE LAW.] Except as provided in this 
section, section 125.12 applies to the employment of each 
teacher by the joint vocational technical district.  
    Sec. 11.  [136C.65] [NONLICENSED EMPLOYEES.] 
    Subdivision 1.  [ASSIGNMENT.] When an independent school 
district becomes a member of the joint vocational technical 
district, each nonlicensed employee primarily employed in an 
AVTI who is transferred to the joint vocational technical 
district shall be assigned to and become an employee of the 
joint vocational technical district without further employment 
rights in the member district, other than, for two years from 
the date of assignment to the joint vocational technical 
district, the right to exercise, in the member district, job 
seniority promotion and job seniority layoff provisions of the 
contract in effect at the time of that employee's assignment to 
the joint vocational technical district.  This reassignment of 
employment rights is not a leaving of employment for eligibility 
for payment under section 465.72 or under a policy or contract 
based on that section. 
    Subd. 2.  [EXCLUSIVE REPRESENTATIVES.] After the 
commissioner assigns an identification number to the joint 
vocational technical district, any employee organization may 
petition the director of the bureau of mediation services for a 
certification election proceeding under chapter 179A.  An 
organization certified as the exclusive representative for 
nonlicensed employees in a particular member district who are 
assigned to the joint vocational technical district upon its 
establishment shall continue as the exclusive representative for 
those particular employees for a period of 90 days from the date 
on which the joint vocational technical district is established. 
If a petition for representation of nonlicensed employees is 
filed within 90 days, an exclusive representative for those 
particular nonlicensed employees shall continue as the exclusive 
representative until bureau of mediation services certification 
proceedings are concluded. 
    Subd. 3.  [BARGAINING AGREEMENT.] (a) The terms and 
conditions of employment of nonlicensed employees assigned to 
the joint vocational technical district who were not governed by 
a collective bargaining agreement at the time of the assignment 
are governed by joint board policy.  The terms and conditions of 
employment of nonlicensed employees assigned to the joint 
vocational technical district from each member district will be 
temporarily governed by contracts executed by an exclusive 
representative for a period of 90 days from the date of 
assignment.  If a petition for representation of nonlicensed 
employees is filed with the bureau of mediation services within 
the 90 days, the contractual terms and conditions of employment 
for those particular nonlicensed employees who were governed by 
a preexisting contract will continue until bureau of mediation 
services proceedings are concluded and, if an exclusive 
representative has been elected, until successor contracts are 
executed between the board of the joint vocational technical 
district and the new exclusive representative.  
    (b) The date of first employment in the joint vocational 
technical district is the date on which services were first 
performed by the employee in the member school district from 
which assigned.  Any sick leave, vacation time, or severance pay 
benefits accumulated under policies of a member district or 
contracts between exclusive representatives and the boards of 
member districts continue to apply in the new joint vocational 
technical district to the employee assigned from those member 
districts, subject to any maximum accumulation limitations 
negotiated in a successor contract.  Future leaves of absence, 
vacations, or other benefits to be accumulated in the new joint 
vocational technical district are governed by joint board policy 
or by contract between an exclusive representative of an 
appropriate unit of employees and the joint vocational technical 
board.  The joint vocational technical board shall provide, to 
transferred nonlicensed employees, open enrollment in all 
insurance plans with no limitation on preexisting conditions. 
    Sec. 12.  [136C.66] [TRANSFER OF PROPERTY.] 
    Subdivision 1.  [TRANSFER OF TITLE.] When an independent 
school district becomes a member of the joint vocational 
technical school district, the member district shall transfer to 
the joint board title to the AVTI facility in that district and 
other appropriate equipment, personal property, and related 
records.  The deed transferring the real property may specify 
that title to the property reverts to the granting school 
district if the property is no longer used for vocational or 
technical education purposes.  All claims and contract 
obligations of the member district relating to the AVTI and 
adult and post-secondary vocational education programs, 
including claims for unemployment compensation, also transfer to 
the joint vocational technical district.  
    Subd. 2.  [DEBT.] The bonded debt on all property 
transferred must be paid according to levies for that debt 
previously made under chapter 475.  The obligation of the 
taxable property in the member district with reference to the 
payment of that bonded debt is not affected by the transfer.  
    Subd. 3.  [TRANSFER OF FUNDS.] A member district shall 
transfer all fund balances, excluding the debt redemption fund, 
in all post-secondary and adult vocational funds to the joint 
vocational technical district.  
    Subd. 4.  [TRANSFER NOT TO AFFECT LEGAL ACTION.] The 
transfer of property, title, and power to govern AVTIs and 
post-secondary and adult vocational programs does not affect a 
proceeding of an administrative, civil, or criminal nature 
pending at the time of the transfer, but the proceeding must be 
pursued in the name of the joint board.  The joint board or its 
designee, upon application to the appropriate court or agency, 
shall be substituted as a party to the proceeding.  
    Sec. 13.  [136C.67] [TAX LEVIES.] 
    Subdivision 1.  [STATE AUDITOR COSTS; JUDGMENTS; 
INSURANCE.] The joint board may levy upon all taxable property 
in the joint vocational technical district an amount necessary 
to pay the joint vocational technical district's obligations for 
state auditor costs under section 6.62, to pay its obligations 
for judgments under section 127.05, and to pay its insurance 
premium costs under section 466.06. 
    Subd. 2.  [AID ANTICIPATION CERTIFICATES.] The joint board 
may issue aid anticipation certificates of indebtedness under 
sections 124.71 to 124.76 and may pledge the full faith and 
credit of the joint vocational technical district to their 
payment under section 124.75.  
    Sec. 14.  [136C.68] [JOINDER.] 
    Upon approval by the majority vote of its board and the 
joint board, any other independent school district with an area 
vocational technical institute may enter into an agreement to 
become a participant in a joint vocational technical district. 
An election is not required on this issue.  The agreement must 
be approved by resolution of the school board of the independent 
district and the joint board.  The resolutions must be filed 
with the state director.  
    Sec. 15.  [136C.69] [PAYMENT OBLIGATION.] 
    Subdivision 1.  [AGREEMENTS WITH STATE DIRECTOR.] The state 
director may enter into agreements with the joint vocational 
technical district and its member school districts relating to 
costs of interim staffing and to payments of district service 
fees to member districts.  
    Subd. 2.  [PAYMENT OF DEBT; TRANSFER; DEBT SERVICE 
AID.] (a) A member district that has debt outstanding upon an 
AVTI facility and property that is transferred to the joint 
vocational technical district shall escrow in its AVTI debt 
redemption fund the least of: 
    (1) a sufficient amount to defease the outstanding debt 
under the terms of the bond agreement; 
    (2) the minimum amount required by the bond agreement; or 
    (3) the remaining balance in the AVTI debt redemption fund. 
    (b) The member district shall transfer the amount to a 
separate account in its debt redemption fund for payment of the 
debt.  Any remaining balance in the AVTI debt redemption fund 
may be used as provided in section 123.36, subdivision 13, 
clauses (2), (3), and (4). 
    (c) The state board of vocational technical education shall 
pay 100 percent of the remaining debt service on the AVTI 
facilities of all member districts that have transferred their 
AVTI facilities to the board of the joint vocational technical 
district.  If the property reverts to ownership by the member 
district, the state portion of debt service aid must be paid 
according to section 136C.41, subdivision 1.  
    Subd. 4.  [LEVY.] (a) A member district that has 
transferred an AVTI facility to the joint board may levy upon 
all taxable property in the member district, the following:  
    (1) in the first levy certified after the transfer, 75 
percent of the amount of the district's most recent service fee 
allocation;  
    (2) in the second levy certified after the transfer, 50 
percent of the amount of the district's service fee allocation 
under clause (1); and 
    (3) in the third levy certified after the transfer, 25 
percent of the amount of the district's service fee allocation 
under clause (1).  
    (b) The proceeds of the levy may be placed in the general 
fund or any other fund of the district.  Any unexpended portion 
of the proceeds so received must not be considered in the net 
unappropriated fund balance of the member district for the three 
fiscal years to which the levy is attributable. 
    Sec. 16.  Minnesota Statutes 1984, section 275.125, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] Except as may otherwise be 
provided in this section, the words and phrases defined in 
sections 124.01, 124.20 120.02, 124.201, 124.212, 124.225, and 
124A.02, and 124A.033, when used in this section shall have the 
meanings ascribed to them in those sections. 
    Sec. 17.  Minnesota Statutes 1984, section 275.125, 
subdivision 14a, is amended to read: 
    Subd. 14a.  [LEVY FOR LOCAL SHARE OF AVTI CONSTRUCTION.] 
(a) The definitions in section 136C.02 apply to this subdivision.
    (b) A district maintaining a post-secondary area vocational 
technical institute may levy for its local share of the cost of 
construction of facilities for the post-secondary area 
vocational-technical institute as provided in this subdivision.  
    (1) (c) The construction must be authorized by a specific 
legislative act pursuant to section 136C.07, subdivision 5, 
after January 1, 1980.  The specific legislative act must 
require that 85 percent part of the cost of construction for 
post-secondary vocational purposes shall be financed by the 
state and that 15 percent part of the cost of construction for 
post-secondary vocational purposes shall be financed by the 
school district operating the post-secondary area vocational 
technical institute.  
    (2) (d) The district may levy an amount equal to the local 
share of the cost of construction for post-secondary vocational 
purposes, minus the amount of any unappropriated net balance in 
the district's post-secondary vocational technical building 
construction fund.  A district may levy the total amount 
authorized by this subdivision in one year, or a proportionate 
amount of the total authorized amount each year for up to three 
successive years.  
    (3) (e) By the July 1 before a district certifies the first 
levy pursuant to this subdivision for the local share of any 
construction project, at least three weeks published notice of 
the proposed levy shall be given in the legal newspaper with the 
largest circulation in the district.  The notice shall state the 
purpose of the proposed levy, the duration of the proposed levy 
and the amount of the proposed levy in dollars and mills.  Upon 
petition within 20 days after the notice of the greater of (a) 
50 voters, or (b) 15 percent of the number of voters who voted 
in the district at the most recent regular school board 
election, the board shall call a referendum on the proposed levy.
The referendum shall be held on a date set by the school board, 
but no later than the August 20 before the levy is certified.  
The question on the ballot shall state the amount of the 
proposed levy in mills on the district's adjusted assessed 
valuation and in dollars in the first year of the proposed levy. 
    (4) (f) For the purposes of this subdivision, "construction"
includes the acquisition and betterment of land, buildings and 
capital improvements for post-secondary area vocational 
technical institutes.  
    (5) (g) A district may not levy for the cost of a 
construction project pursuant to the this subdivision if it 
issues any bonds to finance any costs of the project. 
    Sec. 18.  [EFFECTIVE DATE.] 
    This act is effective the day following its final enactment.
    Approved April 17, 1985