1997 Minnesota Statutes

CHAPTER 122. School districts: formation and cooperation

    122.01 Subdivision 1.  MS 1953 Repealed, 1957 c 
 947 art 9 s 9 

    Subd. 2.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 3.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 4.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 5.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 6.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 7.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 8.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 9.  MS 1953 Repealed, 1957 c 947 art 9 s 9 

    Subd. 10.  MS 1953 Repealed, 1955 c 862 s 14 

     122.01 Definitions. 

    For purposes of this chapter, the words defined in section 
 120.02, have the same meaning. 

    HIST: Ex1959 c 71 art 3 s 1 

   122.011-122.014 MS 1957 Repealed, Ex1959 c 71 art 8 s 
  26 

  122.015 MS 1953 Repealed, 1955 c 862 s 14 

   122.016-122.019 MS 1957 Repealed, Ex1959 c 71 art 8 s 
  26 

   122.02 Classes, number.  

    School districts shall be classified as common, 
 independent, or special districts, each of which is a public 
 corporation.  Each district shall be known by its classification 
 and each shall be assigned a number by the commissioner so that 
 its title will be .......... school district number ..... . 

    HIST: Ex1959 c 71 art 3 s 2; 1974 c 406 s 11 

   122.03 Assignment of identification numbers. 

    Subdivision 1.  The commissioner of children, families, and 
 learning shall, by order, assign an identification number to 
 each district.  The assignment shall be made so that each 
 classified district has an identification number which is 
 exclusive to it in its classification. 

    Subd. 2.  Upon making the assignment of an identification 
 number, the commissioner of children, families, and learning 
 shall forthwith notify the clerk of the district and the county 
 auditors of the counties in which any part of the district lies 
 of the identification number assigned.  A certified copy of the 
 order may be recorded in the office of the county recorder to 
 show the new legal name of the district. 

    Subd. 3.  From and after the making of the order, the legal 
 identification of the district shall become and be as assigned.  
 All records, correspondence, reports and references to the 
 district shall thereafter refer to the district by its proper 
 title as assigned. 

    Subd. 4.  A number once assigned a district under section 
 122.02 or under any prior law, shall not be used again to 
 identify any district in the same classification.  As the need 
 arises, and as required by law, as new districts are formed, the 
 commissioner of children, families, and learning shall assign 
 unused numbers as identification.  When numbered districts are 
 dissolved, the numbers assigned them will not be reassigned to 
 any other district. 

    Subd. 5.  Repealed, 1961 c 562 s 15 

    HIST: 1957 c 947 art 10 s 1; 1961 c 562 s 1,2; 1976 c 181 s 2; 
 1Sp1995 c 3 art 16 s 13 

   122.031-122.039 MS 1957 Repealed, Ex1959 c 71 art 8 s 
  26 

  122.04 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.041-122.049 MS 1957 Repealed, Ex1959 c 71 art 8 s 
  26 

  122.05 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.051-122.059 MS 1957 Repealed, Ex1959 c 71 art 8 s 
  26 

  122.06 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.061 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

    122.062 Subdivision 1.  MS 1957 Renumbered 122.03 
 subdivision 1 

    Subd. 2.  Renumbered 122.03 subd 2 

    Subd. 3.  Renumbered 122.03 subd 3 

    Subd. 4.  Renumbered 122.03 subd 4 

    Subd. 5.  Repealed, 1961 c 562 s 15 

  122.07 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.08 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.09 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.10 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.11 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.11 MS 1974 Repealed, 1975 c 162 s 42 

  122.111 MS 1953 Repealed, 1955 c 858 s 13 

   122.12 MS 1953 Repealed, 1955 c 858 s 13 

  122.12 MS 1969 Repealed, 1971 c 25 s 32 

  122.13 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.14 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.15 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.16 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.17 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.18 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.19 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.20 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.21 Detachment and annexation of land. 

    Subdivision 1.  The owner of land which adjoins any 
 independent district, and whose land is not in a special 
 district may petition the county board of the county in which 
 the greater part of the area proposed for detachment and 
 annexation lies to detach all or any part of the land together 
 with the intervening lands as defined in subparagraph (b) below, 
 from the district it now is in, and to attach it, together with 
 such intervening land, to the adjoining district.  For purpose 
 of this section, land is adjoining a school district if: 

    (a) The boundary of the area proposed for detachment and 
 annexation is the same as the district boundary to which 
 attachment is sought at any point, including corners, or 

    (b) The area proposed for detachment and annexation is 
 separated at any point from the district to which annexation is 
 sought by not more than one-half mile and the intervening land 
 is vacant and unoccupied or is owned by one or more of the 
 following:  The United States, or the state of Minnesota or any 
 of its political subdivisions, or an owner who is unknown or 
 cannot be found or 

    (c) The area proposed by a land owner for detachment and 
 annexation is adjoining (as defined in subparagraphs (a) and (b) 
 above) any land proposed for detachment from and annexation to 
 the same district in another pending petition. 

    Subd. 2.  The petition shall contain: 

    (a) A correct description of the area proposed for 
 detachment and annexation, together with such supporting data 
 with regard to location and title to land as will establish 
 facts conformable to subdivision 1. 

    (b) The reasons for the proposed change with facts showing 
 that the granting of the petition will not reduce the size of 
 any district to less than four sections, unless the district is 
 not operating a school within the district. 

    (c) Consent to the petition, endorsed thereon at any time 
 before the hearing by the board of the district from which the 
 area is to be removed, if, at the time of the filing of the 
 petition, any part of the area proposed for detachment is part 
 of a district which maintains and operates a secondary school 
 within the district. 

    (d) An identification of the district to which annexation 
 is sought. 

    (e) Such other information as petitioners may desire to 
 affix. 

    (f) An acknowledgment by the petitioner. 

    Subd. 3.  The petition shall be filed with the auditor who 
 shall present it to the county board at its next meeting.  At 
 the meeting, the county board shall fix a time and place for 
 hearing the petition, which time shall be not more than 60 nor 
 less than ten days from the date of the meeting.  The auditor 
 shall forthwith serve notice of the hearing on each district 
 directly affected by the petition, by mail addressed to the 
 clerk.  If any area affected by the petition is in another 
 county, the auditor shall mail a notice of hearing to the 
 auditor of such county and shall also give one week's published 
 notice of the hearing in the county wherein the hearing is to be 
 held, and ten days' posted notice in each school district 
 affected.  Such posted and published notice may combine pending 
 petitions.  At the hearing on the petition, the county board 
 shall receive and hear any evidence for or against the 
 petition.  The hearing may be adjourned from time to time. 

    Subd. 4.  Within six months of the time when the petition 
 was filed, the county board shall issue its order either 
 granting or denying the petition, unless all or part of the land 
 area described in the petition is included in a plat for 
 consolidation or combination which has been approved by the 
 commissioner of children, families, and learning in which event, 
 no order may be issued while consolidation or combination 
 proceedings are pending.  No order shall be issued which results 
 in attaching to a district any territory not adjoining that 
 district, as defined in subdivision 1(a).  No order shall be 
 issued which reduces the size of any district to less than four 
 sections unless the district is not operating a school within 
 the district.  The order may be made effective at a deferred 
 date not later than July 1 next following its issuance.  If the 
 petition be granted, the auditor shall transmit a certified copy 
 to the commissioner.  Failure to issue an order within six 
 months of the filing of the petition or termination of 
 proceedings upon an approved consolidation plat, whichever is 
 later, is a denial of the petition. 

    Subd. 5.  Upon receipt of the order, the commissioner shall 
 forthwith modify the records and any plats and petitions and 
 proceedings involving districts affected by such order presently 
 before the commissioner for action or record, to conform to the 
 order. 

    Subd. 6.  Upon the effective date of the order, the 
 detachment and annexation ordered therein is effected.  All 
 taxable property in the area so detached and annexed remains 
 taxable for payment of any school purpose obligations 
 theretofore authorized by or on that date outstanding against 
 the district from which detached.  Such property is not by 
 virtue of the order relieved from the obligation of any bonded 
 debt theretofore incurred to which it was subject prior to the 
 order.  All taxable property in the area so detached and annexed 
 is taxable for payment of any school district obligations 
 authorized on or subsequent to the effective date of the order 
 by the district to which annexation is made. 

    HIST: Ex1959 c 71 art 3 s 5; 1965 c 225 s 1; 1969 c 364 s 1; 
 1975 c 162 s 10,41; 1977 c 447 art 7 s 15; 1986 c 444; 1Sp1995 c 
 3 art 6 s 2; art 16 s 13 

   122.22 Dissolution and attachment. 

    Subdivision 1.  Any district may be dissolved and the 
 territory be attached to other districts by proceeding in 
 accordance with this section. 

    Subd. 2.  Proceedings under this section may be instituted 
 by: 

    (a) Resolution of the county board of the county containing 
 the greatest land area of the district proposed for dissolution 
 when the district is dissolved pursuant to sections 122.32 to 
 122.52. 

    (b) Petition executed by a majority of the eligible voters 
 of the district proposed for dissolution and addressed to the 
 county board of the county containing the greatest land area of 
 the district. 

    (c) Certification by the clerk of the district proposed for 
 dissolution to the county board of the county containing the 
 greatest land area of the district to the effect that a majority 
 of votes cast at an election were in favor of dissolving the 
 district. 

    Subd. 3.  A resolution adopted pursuant to subdivision 2(a) 
 shall contain findings of necessary jurisdictional facts and 
 shall set a date for hearing.  The hearing shall be not less 
 than 20 nor more than 60 days from the date of the resolution.  

    Subd. 4.  A petition executed pursuant to subdivision 2(b) 
 shall be filed with the auditor.  It shall contain the following:

    (a) A statement that petitioners desire proceedings 
 instituted leading to dissolution of the district and other 
 provisions made for the education of the inhabitants of the 
 territory and that petitioners are eligible voters of the 
 district; 

    (b) An identification of the district; and 

    (c) The reasons supporting the petition which may include 
 recommendations as to disposition of territory to be dissolved.  
 The recommendations are advisory in nature only and are not 
 binding on any petitioners or county board for any purpose. 

    The persons circulating the petition shall attach their 
 affidavit swearing or affirming that the persons executing the 
 petition are eligible voters, as defined in section 201.014, of 
 the district and that they signed in the presence of one of the 
 circulators. 

    The auditor shall present the petition to the county board 
 at its next meeting.  At that meeting, the county board shall 
 determine a date for a hearing.  The hearing shall be not less 
 than 20 nor more than 60 days from the date of that meeting.  

    Subd. 5.  Certification executed pursuant to subdivision 
 2(c) shall be filed with the auditor.  It shall contain the 
 following: 

    (a) A copy of the resolution initiating the election; 

    (b) A copy of the notice of election with an affidavit of 
 publication or posting; 

    (c) The question voted on; 

    (d) The results of the election by number of votes cast for 
 and number against the question; and 

    (e) If an advisory ballot is taken on annexation, the 
 question voted on and number of ballots cast for and against the 
 proposal.  

    The auditor shall present the certification to the county 
 board at its next meeting.  At that meeting, the county board 
 shall determine a date for a hearing.  The hearing shall be not 
 less than 20 nor more than 60 days from the date of that meeting.

    Subd. 6.  When a hearing is ordered under this section, the 
 auditor shall have ten days' posted notice of the hearing in the 
 district proposed for dissolution, one week's published notice 
 in the county, and ten days' mailed notice to the clerk of the 
 district proposed for dissolution and to the clerk of each 
 adjoining district and to the commissioner.  If all or any part 
 of the district proposed for dissolution or any adjoining 
 district lies in another county, the auditor shall forthwith 
 upon establishment of the hearing date, mail notice of the 
 hearing to the auditor of each county so situated. 

    Subd. 7.  No order dissolving a district may be issued by 
 the county board if the district to be dissolved is included in 
 a plat for consolidation which has been approved by the state 
 board of education and upon which plat final action has not been 
 taken unless all of the district to be dissolved and all of the 
 district or districts to which attachment is proposed are 
 included in the approved plat. 

    Subd. 7a.  (a) Before the day of a hearing ordered pursuant 
 to this section, each district adjoining the district proposed 
 for dissolution shall provide the following information and 
 resolution to the county auditor of the county containing the 
 greatest land area of the district proposed for dissolution:  

    (1) The outstanding bonded debt, outstanding energy loans 
 made according to section 216C.37 or sections 298.292 to 
 298.298, and the capital loan obligation of the district; 

    (2) The net tax capacity of the district; 

    (3) The most current school tax rates for the district, 
 including any referendum, discretionary, or other optional 
 levies being assessed currently and the expected duration of the 
 levies; 

    (4) A resolution passed by the school board of the district 
 stating that if taxable property of the dissolved district is 
 attached to it, one of the following requirements is imposed:  

    (i) the taxable property of the dissolving district which 
 is attached to its district shall not be liable for the bonded 
 debt, outstanding energy loans made according to section 216C.37 
 or sections 298.292 to 298.298, or the capital loan obligation 
 of the district which existed as of the time of the attachment; 

    (ii) the taxable property of the dissolving district which 
 is attached to its district shall be liable for the payment of 
 the bonded debt, outstanding energy loans made according to 
 section 216C.37 or sections 298.292 to 298.298, or the capital 
 loan obligation of the district which existed as of the time of 
 the attachment in the proportion which the net tax capacity of 
 that part of the dissolving district which is included in the 
 newly enlarged district bears to the net tax capacity of the 
 entire district as of the time of attachment; or 

    (iii) the taxable property of the dissolving district which 
 is attached to its district shall be liable for some specified 
 portion of the amount that could be requested pursuant to 
 subclause (ii).  

    (b) An apportionment pursuant to paragraph (a), clause (4), 
 subclause (ii) or (iii), shall be made by the county auditor of 
 the county containing the greatest land area of the district 
 proposed for transfer.  

    (c) An apportionment of bonded indebtedness, outstanding 
 energy loans made according to section 216C.37 or sections 
 298.292 to 298.298, or capital loan obligation pursuant to 
 paragraph (a), clause (4), subclause (ii) or (iii), shall not 
 relieve any property from any tax liability for payment of any 
 bonded or capital obligation, but taxable property in a district 
 enlarged pursuant to this section becomes primarily liable for 
 the payment of the bonded debt, outstanding energy loans made 
 according to section 216C.37 or sections 298.292 to 298.298, or 
 capital loan obligation to the extent of the proportion stated.  

    Subd. 8.  Within 90 days of the date set for the original 
 hearing or within 30 days of the termination of a consolidation 
 proceeding which stays the order under subdivision 7, the county 
 board may issue its order: 

    (a) Dismissing the proceedings; or 

    (b) Providing for the dissolution of the district and the 
 annexation of the territory to adjoining districts, or the 
 entire district as a unit may be attached to and become part of 
 a district which maintains a secondary school located within the 
 same high school area if there is no intervening district 
 maintaining a secondary school. 

    If no order is issued within the limited time, the 
 proceedings are dismissed.  

    If an order is issued pursuant to clause (b) the order is a 
 final order, unless an election on the order is required 
 pursuant to subdivision 11.  

    Subd. 9.  (a) An order issued under subdivision 8, clause 
 (b), shall contain the following: 

    (1) A statement that the district is dissolved unless the 
 results of an election held pursuant to subdivision 11 provide 
 otherwise; 

    (2) A description by words or plat or both showing the 
 disposition of territory in the district to be dissolved; 

    (3) The outstanding bonded debt, outstanding energy loans 
 made according to section 216C.37 or sections 298.292 to 
 298.298, and the capital loan obligation of the district to be 
 dissolved; 

    (4) A statement requiring the fulfillment of the 
 requirements imposed by each adjoining district to which 
 territory in the dissolving district is to be attached regarding 
 the assumption of its outstanding preexisting bonded 
 indebtedness by any territory from the dissolving district which 
 is attached to it; 

    (5) An effective date for the order.  The effective date 
 shall be July 1 of an odd-numbered year unless the school board 
 and the exclusive representative of the teachers in each 
 affected district agree to an effective date of July 1 of an 
 even-numbered year.  The agreement must be in writing and 
 submitted to the commissioner of children, families, and 
 learning; and 

    (6) Other information the county board may desire to 
 include. 

    (b) The auditor shall within ten days from its issuance 
 serve a copy of the order by mail upon the clerk of the district 
 to be dissolved and upon the clerk of each district to which the 
 order attaches any territory of the district to be dissolved and 
 upon the auditor of each other county in which all or any part 
 of the district to be dissolved or any district to which the 
 order attaches territory lies, and upon the commissioner. 

    Subd. 10. Repealed, 1981 c 358 art 7 s 31 

    Subd. 11.  If the proceedings were instituted by petition, 
 under subdivision 2(b), or by election, under subdivision 2(c) 
 and an advisory recommendation was made in the petition or an 
 advisory ballot taken at the election, as to annexation 
 requested, and if the order makes a different provision for 
 annexation than requested, then the order must be approved by a 
 majority of those voting on the question at an election to be 
 called in the district to be dissolved, under subdivision 13.  
 The question voted on shall be: 

    "Shall the order of the county board of ..... county, dated 
 ..... providing for the dissolution of this school district be 
 approved?"  Yes ..... No .....  

    Subd. 12. Repealed, 1981 c 358 art 7 s 31 

    Subd. 13.  If an election is required under subdivision 11, 
 then before the expiration of a 45 day period after the date of 
 the order for dissolution and attachment, the auditor shall set 
 a date and call the election by filing a written order therefor 
 and serving a copy thereof personally or by mail on the clerk of 
 the district in which the election is to be held.  The date 
 shall be not less than 15 nor more than 30 days after the date 
 of the order, upon which date a special election shall be held 
 in the district proposed for dissolution.  The auditor shall 
 cause notice of the election to be posted and published 
 according to law.  Upon receipt of the notice, the board shall 
 conduct the election. 

    Subd. 14.  The results of the election shall be certified 
 by the board to the auditor.  If a majority of all votes cast on 
 the question at the election approve the order, the order 
 becomes final and effective as of the date specified in the 
 order.  Each person served with the order shall be so notified.  
 If a majority of all votes cast on the question disapprove the 
 order, the proceedings are dismissed, and the order becomes void.

    Subd. 15. Repealed, 1981 c 358 art 7 s 31 

    Subd. 16. Repealed, 1981 c 358 art 7 s 31 

    Subd. 17.  Repealed, 1975 c 162 s 42 

    Subd. 18.  The bonded debt of a district dissolved under 
 provisions of this section shall be paid according to levies 
 made therefor under provision of chapter 475.  The obligation of 
 the taxable property in the dissolved district with reference to 
 the payment of such bonded debt is not affected by this section. 

    Subd. 19.  Repealed, 1975 c 162 s 42 

    Subd. 20.  If the dissolved district is not divided by the 
 order of dissolution and attachment, all of its current assets 
 and liabilities, real and personal, and all its legally valid 
 and enforceable claims and contract obligations shall pass to 
 the district to which it is attached, except as provided in 
 section 122.532.  If the district to be dissolved is divided by 
 the order of dissolution and attachment, the commissioner shall, 
 within 30 days after the order is issued, issue an order for the 
 distribution of its current assets and liabilities, real and 
 personal.  If the commissioner's order provides for the transfer 
 of an interest in real estate to a district, this order may also 
 impose a dollar amount as a claim against that district in favor 
 of other districts, and this claim shall be paid and enforced in 
 the manner provided by law for the payment of judgments against 
 a district.  The obligations of districts to the teachers 
 employed by the dissolved district shall be governed by the 
 provisions of section 122.532. 

    Subd. 21.  (a) In the year prior to the effective date of 
 the dissolution of a district, the school board of a district to 
 which all of the dissolving district is to be attached may adopt 
 a resolution directing the school board of the dissolving 
 district to certify levies for general education, basic 
 transportation, and capital expenditure equipment and facilities 
 in an amount not to exceed the maximum amount authorized for the 
 dissolving district for taxes payable in the year the 
 dissolution is effective.  If the dissolving district is to be 
 attached to more than one school district, the boards of the 
 districts to which the dissolving district is to be attached may 
 adopt a joint resolution that accomplishes the purpose in this 
 paragraph. 

    (b) Notwithstanding any other law to the contrary, upon 
 receipt of a resolution under paragraph (a), the board of the 
 dissolving district must certify levies in the amounts specified 
 in the resolution for taxes payable in the year the dissolution 
 is effective. 

    HIST: Ex1959 c 71 art 3 s 6; 1969 c 364 s 2; 1974 c 406 s 12; 
 1975 c 162 s 41; 1978 c 764 s 15-18; 1980 c 609 art 6 s 9,10; 
 1981 c 358 art 7 s 12-21; 1987 c 266 art 2 s 2,3; 1988 c 719 art 
 5 s 84; 1989 c 209 art 2 s 1; 1989 c 329 art 13 s 20; 1991 c 265 
 art 6 s 6,7; 1992 c 499 art 6 s 5; 1993 c 224 art 6 s 4; 1Sp1995 
 c 3 art 16 s 13 

   122.23 Consolidation. 

    Subdivision 1.  Common or independent districts or parts 
 thereof, or any combination of the foregoing may consolidate 
 into a single independent district by proceedings taken in 
 accordance with this section.  The proposed new district must 
 contain at least 18 sections of land. 

    Subd. 2.  (a) Upon a resolution of a school board in the 
 area proposed for consolidation or upon receipt of a petition 
 therefor executed by 25 percent of the voters resident in the 
 area proposed for consolidation or by 50 such voters, whichever 
 is lesser, the county auditor of the county which contains the 
 greatest land area of the proposed new district shall forthwith 
 cause a plat to be prepared.  The resolution or petition shall 
 show the approximate area proposed for consolidation.  

    (b) The resolution or petition may propose the following: 

    (1) that the bonded debt of the component districts will be 
 paid according to the levies previously made for that debt under 
 chapter 475, or that the taxable property in the newly created 
 district will be taxable for the payment of all or a portion of 
 the bonded debt previously incurred by any component district as 
 provided in subdivision 16; 

    (2) that obligations for a capital loan or an energy loan 
 made according to section 216C.37 or sections 298.292 to 298.298 
 outstanding in a preexisting district as of the effective date 
 of consolidation remain solely with the preexisting district 
 that obtained the loan, or that all or a portion of the loan 
 obligations will be assumed by the newly created or enlarged 
 district and paid by the newly created or enlarged district on 
 behalf of the preexisting district that obtained the loan; 

    (3) that referendum levies previously approved by voters of 
 the component districts pursuant to section 124A.03, subdivision 
 2, or its predecessor provision, be combined as provided in 
 section 122.531, subdivision 2a or 2b, or that the referendum 
 levies be discontinued; 

    (4) that the board of the newly created district consist of 
 the number of members determined by the component districts, 
 which may be six or seven members elected according to 
 subdivision 18, or any number of existing school board members 
 of the component districts, and a method to gradually reduce the 
 membership to six or seven; or 

    (5) that separate election districts from which school 
 board members will be elected, the boundaries of these election 
 districts, and the initial term of the member elected from each 
 of these election districts be established. 

    The resolution must provide for election of board members 
 from one of the following options:  single-member districts; 
 multimember districts; at large; or a combination of these 
 options.  The resolution must include a plan for the orderly 
 transition to the option chosen. 

    A group of districts that operates a cooperative secondary 
 facility funded under section 124.494 may also propose a 
 temporary school board structure as specified in section 
 124.494, subdivision 7. 

    If a county auditor receives more than one request for a 
 plat and the requests involve parts of identical districts, the 
 auditor shall forthwith prepare a plat which in the auditor's 
 opinion best serves the educational interests of the inhabitants 
 of the districts or areas affected.  

    (c) The plat shall show: 

    (1) Boundaries of the proposed district, as determined by 
 the county auditor, and present district boundaries, 

    (2) The location of school buildings in the area proposed 
 as a new district and the location of school buildings in 
 adjoining districts, 

    (3) The boundaries of any proposed separate election 
 districts, and 

    (4) Other pertinent information as determined by the county 
 auditor. 

    Subd. 2a.  The county auditor of the county containing the 
 greatest land area of the area proposed to be consolidated shall 
 perform the duties provided by this section. 

    Subd. 2b.    Orderly reduction plan.  As part of the 
 resolution required by subdivision 2, the school board must 
 prepare a plan for the orderly reduction of the membership of 
 the board to six or seven members and a plan for the 
 establishment or dissolution of election districts.  The plan 
 must be submitted to the secretary of state for review and 
 comment. 

    Subd. 3.  A supporting statement to accompany the plat 
 shall be prepared by the county auditor.  The statement shall 
 contain: 

    (a) The adjusted net tax capacity of property in the 
 proposed district, 

    (b) If a part of any district is included in the proposed 
 new district, the adjusted net tax capacity of the property and 
 the approximate number of pupils residing in the part of the 
 district included shall be shown separately and the adjusted net 
 tax capacity of the property and the approximate number of 
 pupils residing in the part of the district not included shall 
 also be shown, 

    (c) The reasons for the proposed consolidation, including a 
 statement that at the time the plat is submitted to the state 
 board of education, no proceedings are pending to dissolve any 
 district involved in the plat unless all of the district to be 
 dissolved and all of each district to which attachment is 
 proposed is included in the plat, 

    (d) A statement showing that the jurisdictional fact 
 requirements of subdivision 1 are met by the proposal, 

    (e) Any proposal contained in the resolution or petition 
 regarding the disposition of the bonded debt, outstanding energy 
 loans made according to section 216C.37 or sections 298.292 to 
 298.298, capital loan obligations, or referendum levies of 
 component districts, 

    (f) Any other information the county auditor desires to 
 include, and 

    (g) The signature of the county auditor. 

    Subd. 4.  The county auditor shall submit the plat and 
 supporting statement to the commissioner and a true copy of each 
 to the auditor of each county containing any land area of the 
 proposed new district. 

    Subd. 5.  Upon receipt of a plat and the supporting 
 statement, each county's auditor shall immediately notify the 
 county's board.  After such notification, and during the 
 pendency of proceedings under the plat and supporting statement 
 or for a period of six months, whichever is shorter, no action 
 may be taken by the county board under any other law to modify 
 the boundary of any district if any part of the district is 
 included in an area proposed for consolidation. 

    Subd. 6.  The commissioner shall, upon receipt of a plat, 
 forthwith examine it and approve, modify or reject it.  The 
 commissioner shall also approve or reject any proposal contained 
 in the resolution or petition regarding the disposition of the 
 bonded debt of the component districts.  If the plat shows the 
 boundaries of proposed separate election districts and if the 
 commissioner modifies the plat, the commissioner shall also 
 modify the boundaries of the proposed separate election 
 districts.  The commissioner shall conduct a hearing at the 
 nearest county seat in the area upon reasonable notice to the 
 affected districts and county boards if requested within 20 days 
 after submission of the plat.  Such a hearing may be requested 
 by the board of any affected district, a county board of 
 commissioners, or the petition of 20 resident voters living 
 within the area proposed for consolidation.  The commissioner 
 shall endorse on the plat action regarding any proposal for the 
 disposition of the bonded debt of component districts and the 
 reasons for these actions and within 60 days of the date of the 
 receipt of the plat, the commissioner shall return it to the 
 county auditor who submitted it.  The commissioner shall furnish 
 a copy of that plat, and the supporting statement and its 
 endorsement to the auditor of each county containing any land 
 area of the proposed new district.  If land area of a particular 
 county was included in the plat, as submitted by the county 
 auditor, and all of such land area is excluded in the plat as 
 modified and approved, the commissioner shall also furnish a 
 copy of the modified plat, supporting statement, and any 
 endorsement to the auditor of such county. 

    Subd. 7.  Upon receipt of an approved plat, the county 
 auditor shall forthwith notify the board of any district, all or 
 part of whose land is included in the proposed new district. 

    Subd. 8.  The board of any independent district maintaining 
 a secondary school, the board of any common district maintaining 
 a secondary school, all or part of whose land is included in the 
 proposed new district, shall, within 45 days of the approval of 
 the plat by the commissioner, either adopt or reject the plan as 
 proposed in the approved plat.  If the board of any such 
 district entitled to act on the petition rejects the proposal, 
 the proceedings are terminated and dismissed.  If any board 
 fails to act on the plat within the time allowed, the 
 proceedings are terminated. 

    Subd. 9.  If the approved plat contains land area in more 
 than one independent district maintaining a secondary school, or 
 common district maintaining a secondary school, and if each 
 board entitled to act on the plat approves the plat, each board 
 shall cause notice of its action to be published at least once 
 in its official newspaper.  If all of the school boards entitled 
 to act on the plat call, by resolution, for an election on the 
 question, or if five percent of the eligible voters of any such 
 district petition the clerk of the district, within 30 days 
 after the publication of the notice, for an election on the 
 question, the consolidation shall not become effective until 
 approved by a majority vote in the district at an election held 
 in the manner provided in subdivisions 11, 12, and 13. 

    Subd. 10.  If an approved plat contains land area in any 
 district not entitled to act on approval or rejection of the 
 plat by action of its board, the plat may be approved by the 
 residents of the land area within 60 days of approval of plat by 
 the commissioner in the following manner: 

    A petition calling upon the county auditor to call and 
 conduct an election on the question of adoption or rejection of 
 the plat may be circulated in the land area by any person 
 residing in the area.  Upon the filing of the petition with the 
 county auditor, executed by at least 25 percent of the eligible 
 voters in each district or part of a district contained in the 
 land area, the county auditor shall forthwith call and conduct a 
 special election of the electors resident in the whole land area 
 on the question of adoption of the plat.  For the purposes of 
 this section, the term "electors resident in the whole land area"
 means any person residing on any remaining portion of land, a 
 part of which is included in the consolidation plat.  Any 
 eligible voter owning land included in the plat who lives upon 
 land adjacent or contiguous to that part of the voter's land 
 included in the plat shall be included and counted in computing 
 the 25 percent of the eligible voters necessary to sign the 
 petition and shall also be qualified to sign the petition.  
 Failure to file the petition within 60 days of approval of the 
 plat by the commissioner terminates the proceedings. 

    Subd. 11.  Upon an election becoming callable under 
 provisions of subdivision 9 or 10, the school board shall give 
 ten days' posted notice of election in the area in which the 
 election is to be held and also if there be a newspaper 
 published in the area, one weeks' published notice shall be 
 given.  The notice shall specify the time, place and purpose of 
 the election. 

    Subd. 12.  The school board shall determine the date of the 
 election, the number of boundaries of voting precincts, and the 
 location of the polling places where voting shall be conducted, 
 and the hours the polls will be open.  The school board shall 
 also provide official ballots which shall be used exclusively 
 and shall be in the following form: 

    For consolidation .... 

    Against consolidation .... 

    The school board shall appoint election judges who shall 
 act as clerks of election.  The ballots and results shall be 
 certified to the school board who shall canvass and tabulate the 
 total vote cast for and against the proposal. 

    Subd. 13.  If a majority of the votes cast on the question 
 at the election approve the consolidation, and if the necessary 
 approving resolutions of boards entitled to act on the plat have 
 been adopted, the school board shall, within ten days of the 
 election, notify the county auditor who shall, within ten days 
 of the notice or of the expiration of the period during which an 
 election can be called, issue an order setting a date for the 
 effective date of the change.  The effective date shall be July 
 1 of the year determined by the school board in the original 
 resolution adopted under subdivision 2.  The auditor shall mail 
 or deliver a copy of such order to each auditor holding a copy 
 of the plat and to the clerk of each district affected by the 
 order and to the commissioner.  The school board shall similarly 
 notify the county auditor if the election fails.  The 
 proceedings are then terminated and the county auditor shall so 
 notify the commissioner and the auditors and the clerk of each 
 school district affected. 

    Subd. 13a. Repealed, 1994 c 647 art 6 s 42 

    Subd. 14.  Upon receipt of the order creating a new 
 district, the commissioner shall forthwith, by order, assign an 
 identification number to the new district and shall mail a copy 
 of the order to the county auditor and to each auditor who holds 
 a copy of the plat.  If all of the territory in one and only one 
 independent district maintaining a secondary school is included 
 in the new independent district created pursuant to 
 consolidation, and if the commissioner finds that it is more 
 practical and reasonable and in the interest of efficiency and 
 economy of operation to so do, the commissioner may assign to 
 the new district the same number as previously held by the 
 included independent district. 

    Subd. 15.  If no district is divided by virtue of the 
 proceedings, all of the assets, real and personal, of the 
 districts involved and all legally valid and enforceable claims 
 and contract obligations of the districts pass to the new 
 district, except as provided in section 122.532.  If a district 
 is divided by virtue of the proceedings, upon receipt of the 
 order of the commissioner, the auditor of the county containing 
 the greatest land area of the new district shall present a copy 
 of the plat and supporting statement and orders issued in the 
 proceedings to the commissioner, together with such information 
 as is available to that auditor concerning the assets and 
 liabilities not secured by bonds of each district, any part of 
 which is included in the newly created district.  Thereafter 
 within 30 days the commissioner shall issue an order providing 
 for a division of the assets and liabilities of the districts 
 involved and apportioning and dividing these assets and 
 liabilities according to such terms as the commissioner may deem 
 just and equitable.  In making this division of assets and 
 liabilities, the commissioner may consider the amount of bonded 
 debt to be assumed by property in each area under the provisions 
 of this section.  If the order of consolidation transfers any 
 real estate interest to the new district or to another district, 
 the order apportioning assets and liabilities may impose a 
 dollar claim on the district receiving the real estate in favor 
 of any other district involved in an amount not exceeding the 
 reasonable value of the real estate interest involved, which 
 claim shall be paid in the manner provided by law for the 
 enforcement of judgments. 

    Subd. 16.  As of the effective date of the consolidation, 
 the bonded debt of all component districts shall be paid 
 according to the plan for consolidation proposed in the approved 
 plat and according to this subdivision. 

    (a) If the plan for consolidation so provides, the bonded 
 debt of all component districts shall be paid according to 
 levies previously made for that debt under chapter 475.  In this 
 case, the obligation of the taxable property in the component 
 districts with reference to the payment of such bonded debt is 
 not affected by the consolidation. 

    (b) If the plan for consolidation makes no provision for 
 the disposition of bonded debt, all the taxable property in the 
 newly created district is taxable for the payment of any bonded 
 debt incurred by any component district in the proportion which 
 the net tax capacity of that part of a preexisting district 
 which is included in the newly created district bears to the net 
 tax capacity of the entire preexisting district as of the time 
 of the consolidation. 

    (c) If the plan for consolidation so provides, all the 
 taxable property in the newly created district will be taxable 
 for a portion of the bonded debt incurred by any component 
 district prior to the consolidation. 

    Apportionment required under paragraphs (b) and (c) shall 
 be made by the county auditor and shall be incorporated as an 
 annex to the order of the commissioner dividing the assets and 
 liabilities of the component parts.  This subdivision shall not 
 relieve any property from any tax liability for payment of any 
 bonded obligation but taxable property in the newly created 
 district becomes primarily liable for the payment of bonded 
 debts to the extent of the proportion stated. 

    Subd. 16a. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 16b. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 16c.    Bonds; election.  The board of the newly 
 created district, when constituted as provided in subdivision 
 17, may provide for an election of that district on the issuance 
 of bonds.  It may issue and sell bonds authorized at the 
 election, or bonds authorized at an election previously held in 
 any preexisting district wholly included within the newly 
 created district, or bonds for a purpose for which an election 
 is not required by law.  The actions may be taken at any time 
 after the date of the county auditor's order issued under 
 subdivision 13, and before or after the date upon which the 
 consolidation becomes effective for other purposes, and taxes 
 for the payment of the bonds shall be levied upon all taxable 
 property in the newly created district.  No bonds shall be 
 delivered to purchasers until 30 days after the date of the 
 county auditor's order.  If within this period a notice of 
 appeal from the county auditor's order to the district court is 
 filed in accordance with section 127.25, no bonds shall be 
 delivered by the newly created district to purchasers unless the 
 county auditor's order is affirmed by final order of the 
 district court in the special proceeding, and a period of 30 
 days from the service of the final order expires without an 
 appeal being commenced or, if an appeal is taken, the order is 
 affirmed and the time for petitioning for further review has 
 expired; except that if all of the territory of one and only one 
 independent district maintaining a secondary school is included 
 in the newly created district, and if the net tax capacity of 
 taxable property in the territory comprises 90 percent or more 
 of the net tax capacity of all taxable property in the newly 
 created district, the board may issue, sell, and deliver any 
 bonds voted by the preexisting independent district and any 
 bonds voted or otherwise authorized by the newly created 
 district, notwithstanding the pendency of the appeal, and the 
 bonds shall be paid by the levy of taxes upon the property 
 within the territory of the preexisting independent district and 
 within the other areas, if any, that are finally determined to 
 be properly included within the newly created district.  In any 
 election held in the newly created district as authorized in the 
 preceding sentence, all qualified electors residing within the 
 area of that district as defined in the county auditor's order 
 shall be entitled to vote, but the votes cast by residents of 
 former districts or portions of former districts included in the 
 area, other than the independent district maintaining the 
 secondary school, shall be received and counted separately.  The 
 bonds shall not be issued and sold unless authorized by a 
 majority of the votes cast thereon by electors of the 
 independent district maintaining the secondary school, and also 
 by a majority of the votes cast thereon by electors residing 
 within the entire area of the newly created district. 

    Subd. 17. Repealed, 1991 c 130 s 38 

    Subd. 18.  (a) The county auditor shall determine a date, 
 not less than 30 nor more than 60 days from the date that the 
 order setting the effective date of the consolidation according 
 to subdivision 13 was issued, upon which date shall be held a 
 special election in the district for the purpose of electing a 
 board of six members for terms of four years and until a 
 successor is elected and qualifies according to provisions of 
 law governing the election of board members in independent 
 districts.  Notwithstanding the foregoing, three members of the 
 first board must be elected to terms that expire on the first 
 Monday in January following the first regularly scheduled school 
 district general election that occurs more than six months after 
 the election of the first board and three members must be 
 elected to terms that expire on the first Monday in January 
 following the second school district general election that 
 occurs more than six months after the election of the first 
 board.  If the first board consists of seven members, then four 
 members may be elected at either the first or second regularly 
 scheduled school district general election following the 
 election of the first board.  If the resolution or petition for 
 consolidation pursuant to subdivision 2 proposed the 
 establishment of separate election districts, these members 
 shall be elected from separate election districts according to 
 the provisions of that resolution or petition and of chapter 
 205A. 

    (b) The county auditor shall give ten days' posted notice 
 of election in the area in which the election is to be held and 
 also if there be a newspaper published in the proposed new 
 district, one weeks' published notice shall be given.  The 
 notice shall specify the time, place, and purpose of the 
 election. 

    (c) Any person desiring to be a candidate for a school 
 election shall file an application with the county auditor to 
 have the applicant's name placed on the ballot for such office, 
 specifying the term for which the application is made.  The 
 application shall be filed not less than 21 days before the 
 election. 

    (d) The county auditor shall prepare, at the expense of the 
 county, necessary ballots for the election of officers, placing 
 thereon the names of the proposed candidates for each office.  
 The ballots shall be marked and signed as official ballots and 
 shall be used exclusively at the election.  The county auditor 
 shall determine the number of voting precincts and the 
 boundaries of each.  The county auditor shall determine the 
 location of polling places and the hours the polls shall be open 
 and shall appoint three election judges for each polling place 
 who shall act as clerks of election.  Election judges shall 
 certify ballots and results to the county auditor for tabulation 
 and canvass. 

    (e) After making a canvass and tabulation, the county 
 auditor shall issue a certificate of election to the candidate 
 for each office who received the largest number of votes cast 
 for the office.  The county auditor shall deliver such 
 certificate to the person entitled thereto by certified mail, 
 and each person so certified shall file an acceptance and oath 
 of office with the county auditor within 30 days of the date of 
 mailing of the certificate.  A person who fails to qualify prior 
 to the time specified shall be deemed to have refused to serve, 
 but such filing may be made at any time before action to fill 
 vacancy has been taken. 

    (f) The board of each district included in the new enlarged 
 district shall continue to maintain school therein until the 
 effective date of the consolidation.  Such boards shall have 
 power and authority only to make such contracts, to do such 
 things as are necessary to maintain properly the schools for the 
 period prior to that date, and to certify to the county auditor 
 according to levy limitations applicable to the component 
 districts the taxes collectible in the calendar year when the 
 consolidation becomes effective. 

    (g) It shall be the immediate duty of the newly elected 
 board of the new enlarged district, when the members thereof 
 have qualified and the board has been organized, to plan for the 
 maintenance of the school or schools of the new district for the 
 next school year, to enter into the necessary negotiations and 
 contracts for the employment of personnel, purchase of equipment 
 and supplies, and other acquisition and betterment purposes, 
 when authorized by the voters to issue bonds under the 
 provisions of chapter 475; and on the effective date of the 
 consolidation to assume the full duties of the care, management 
 and control of the new enlarged district.  The board of the new 
 enlarged district shall give due consideration to the 
 feasibility of maintaining such existing attendance centers and 
 of establishing such other attendance centers, especially in 
 rural areas, as will afford equitable and efficient school 
 administration and assure the convenience and welfare of the 
 pupils residing in the enlarged district.  The obligations of 
 the new board to teachers employed by component districts shall 
 be governed by the provisions of section 122.532.  The 
 obligations of the new board to nonlicensed employees employed 
 by component districts is governed by subdivision 18a. 

    Subd. 18a.    Nonlicensed employees.  (a) As of the 
 effective date of a consolidation of two or more districts or 
 parts of them, each nonlicensed employee employed by an affected 
 district must be assigned to the newly created district. 

    (b) As of the effective date of a consolidation, any 
 employee organization may petition the commissioner of the 
 bureau of mediation services for a certification election under 
 chapter 179A.  An organization certified as the exclusive 
 representative for nonlicensed employees in a particular 
 preexisting district continues as the exclusive representative 
 for those particular employees for a period of 90 days from the 
 effective date of a consolidation.  If a petition for 
 representation of nonlicensed employees is filed within 90 days, 
 an exclusive representative for those particular nonlicensed 
 employees continues as the exclusive representative until the 
 bureau of mediation services certification proceedings are 
 concluded. 

    (c) The terms and conditions of employment of nonlicensed 
 employees assigned to the newly created district are temporarily 
 governed by contracts executed by an exclusive representative 
 for a period of 90 days from the effective date of the 
 consolidation.  If a petition for representation is filed with 
 the bureau of mediation services within the 90 days, the 
 contractual terms and conditions of employment for those 
 nonlicensed employees who were governed by a preexisting 
 contract continue in effect until the 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 newly created district and the 
 new exclusive representative.  The terms and conditions of 
 employment of nonlicensed employees assigned to the newly 
 created district who were not governed by a collective 
 bargaining agreement at the time of the consolidation are 
 governed by the policies of the board of the newly created 
 district. 

    (d) The date of first employment in the newly created 
 district is the date on which services were first performed by 
 the employee in the preexisting district.  Any sick leave, 
 vacation time, or severance pay benefits accumulated under 
 policies of the preexisting district or contracts between the 
 exclusive representatives and the board of the preexisting 
 district continue to apply in the newly created district to the 
 employees of the preexisting 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 newly created district are governed by board 
 policy or by contract between the exclusive representative of an 
 appropriate unit of employees and the board of the newly created 
 district.  The board of the newly created district shall 
 provide, to transferred nonlicensed employees, open enrollment 
 in all insurance plans with no limit on preexisting conditions. 

    Subd. 19.  In case of the consolidation of two or more 
 districts or parts of districts into a larger district, any 
 portions or parts of divided districts which have less than four 
 sections of land shall be attached to one or more adjoining 
 districts by the board of county commissioners upon due notice 
 and hearing. 

    The county auditor shall give ten days' posted notice of 
 the hearing in the area to be attached and shall deliver a copy 
 of the notice of hearing to the clerk of each district adjoining 
 the area at least 30 days prior to the date set for the 
 hearing.  If any adjoining district by resolution of its board, 
 a copy of which is served on the county board before the 
 hearing, demands that area to be attached assume a proportionate 
 share of the bonded debt of the demanding district, then if the 
 order of the county board attaches any land area to such 
 district, the taxable property in such area assumes its 
 proportionate share of the authorized and outstanding bonded 
 debt of the district to which it is attached. 

    Subd. 20.    Retirement incentives.  (a) For 
 consolidations effective July 1, 1994, and thereafter, a school 
 board of a district may offer early retirement incentives to 
 licensed and nonlicensed staff.  The early retirement incentives 
 that the board may offer are: 

    (1) the payment of employer pension plan contributions for 
 a specified period of allowable service credit for district 
 employees who have at least ten years of allowable service 
 credit in the applicable pension plan under paragraph (b); 

    (2) an extended leave of absence for an eligible employee 
 under section 125.60; 

    (3) severance payment incentives under paragraph (c); and 

    (4) the employer payment of the premiums for continued 
 health insurance coverage under paragraph (d). 

    These incentives may only be offered to employees who 
 terminate active employment with the school district or who 
 enter into an extended leave of absence as a result of the 
 consolidation, whichever applies.  The board may determine the 
 staff to whom the incentives are offered.  Unilateral 
 implementation of this section by a school board is not an 
 unfair labor practice under chapter 179A. 

    (b) An employee with at least ten years of allowable 
 service credit in the applicable pension plan who is offered an 
 early retirement incentive under paragraph (a), clause (1), may 
 purchase up to five additional years of allowable service credit 
 from the applicable pension plan.  To do so, the former employee 
 must pay the member contributions to the pension plan annually 
 in a manner and in accord with a schedule specified by the 
 executive director of the applicable fund.  If the former 
 employee makes the member contribution, the board shall make the 
 applicable employer contribution.  The salary used to determine 
 these contributions is the salary of the person in the last year 
 that the former employee was employed by the district.  During 
 the period of continuing member and employer contributions, the 
 person is not considered to be an active member of the 
 applicable pension plan, is not eligible for any active member 
 disability or survivorship benefit coverage, and is not included 
 in any postemployment termination benefit plan changes unless 
 the applicable benefit legislation provides otherwise.  
 Continued eligibility to purchase service credit under this 
 paragraph expires if the person is subsequently employed during 
 the service purchase period by a public employer with retirement 
 coverage under a pension plan specified in section 356.30, 
 subdivision 3. 

    (c) Severance payment incentives must conform with sections 
 465.72, 465.721, and 465.722. 

    (d) The board may offer a former employee continued 
 employer-paid health insurance coverage.  Coverage may not 
 extend beyond age 65 or the end of the first month in which the 
 employee is eligible for employer-paid health insurance coverage 
 from a new employer.  For purposes of this subdivision, 
 "employer-paid health insurance coverage" means medical, 
 hospitalization, or health insurance coverage provided through 
 an insurance company that is licensed to do business in the 
 state and for which the employing unit pays more than one-half 
 of the cost of the insurance premiums. 

    (e) A school board may offer these incentives beginning on 
 the day that the consolidation is approved under section 122.23, 
 subdivision 12 or, if an election is not called under section 
 122.23, subdivision 9 or 10, on the day that the plat is 
 approved by the commissioner.  A board may offer these 
 incentives until the June 30 following the effective date of the 
 consolidation. 

    HIST: Ex1959 c 71 art 3 s 7; 1963 c 549 s 1; 1965 c 525 s 1; 
 1967 c 495 s 1; 1969 c 364 s 3-6; 1974 c 406 s 13; 1975 c 162 s 
 11,41; 1976 c 271 s 35; 1978 c 674 s 60; 1978 c 764 s 19-25; 
 1980 c 609 art 6 s 11,12; 1983 c 247 s 56; 1983 c 314 art 1 s 
 22; art 7 s 9,10; 1986 c 444; 1987 c 266 art 2 s 4-6; 1988 c 569 
 s 1; 1988 c 719 art 5 s 84; 1989 c 209 art 2 s 7; 1989 c 329 art 
 6 s 4; art 13 s 20; 1990 c 562 art 8 s 16-19; 1991 c 130 s 6; 
 1991 c 265 art 6 s 8,9; 1992 c 409 s 1; 1992 c 499 art 6 s 6,7; 
 art 12 s 2-4; 1993 c 224 art 9 s 18,19; 1994 c 647 art 6 s 3-7; 
 1995 c 8 s 1; 1996 c 394 s 1,2 

   122.24 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.24 MS 1969 Repealed, 1971 c 98 s 1 

     122.241 Cooperation and combination. 

    Subdivision 1.    Scope.  Sections 122.241 to 122.248 
 establish procedures for school boards that adopt, by 
 resolution, a five-year written agreement: 

    (1) to provide at least secondary instruction cooperatively 
 for at least one or two years, if the districts cooperate 
 according to subdivision 2; and 

    (2) to combine into one district.  

    Subd. 2.    Cooperation requirements.  Cooperating 
 districts shall: 

    (1) implement a written agreement according to section 
 122.541 no later than the first year of cooperation; 

    (2) all be members of one education district, if any one of 
 the districts is a member, no later than the end of the second 
 year of cooperation; and 

    (3) all be members of one SC, if any one of the districts 
 is a member. 

    Clause (1) does not apply to a district that implemented an 
 agreement for secondary education, according to section 122.535, 
 during any year before the 1991-1992 school year.  If the 
 districts cooperate for one or more years, the agreement may be 
 continued during those years. 

    Subd. 3.    Combination requirements.  Combining 
 districts must be contiguous and meet one of the following 
 requirements at the time of combination:  

    (1) at least two districts with at least 400 resident 
 pupils enrolled in grades 7 through 12 in the combined district 
 and projections, approved by the department of children, 
 families, and learning, of enrollment at least at that level for 
 five years; 

    (2) at least two districts if either: 

    (i) both of the districts qualify for secondary sparsity 
 revenue under section 124A.22, subdivision 6, and have an 
 average isolation index over 23; or 

    (ii) the combined district qualifies for secondary sparsity 
 revenue; 

    (3) at least three districts with fewer than 400 resident 
 pupils enrolled in grades 7 through 12 in the combined district; 
 or 

    (4) at least two districts with fewer than 400 resident 
 pupils enrolled in grades 7 through 12 in the combined district 
 if either district is located on the border of the state. 

    A combination under clause (2), (3), or (4) must be 
 approved by the commissioner of children, families, and 
 learning.  The commissioner shall disapprove a combination under 
 clause (2), (3), or (4) if the combination is educationally 
 unsound or would not reasonably enable the districts to fulfill 
 statutory and rule requirements. 

    HIST: 1989 c 329 art 6 s 5; 1989 c 356 s 48; 1990 c 562 art 6 
 s 4; 1991 c 265 art 6 s 10,11; 1992 c 499 art 6 s 8; 1993 c 224 
 art 13 s 14; 1Sp1995 c 3 art 16 s 13; 1996 c 305 art 1 s 138 

     122.242 Cooperation and combination plan. 

    Subdivision 1.    Adoption and state board review.  Each 
 school board must adopt, by resolution, a plan for cooperation 
 and combination.  The plan must address each item in this 
 section.  The plan must be specific for any item that will occur 
 within three years and may be general or set forth alternative 
 resolutions for an item that will occur in more than three 
 years.  The plan must be submitted to the state board of 
 education and the secretary of state for review and comment.  
 Significant modifications and specific resolutions of items must 
 be submitted to the state board for review and comment.  In the 
 official newspaper of each district proposed for combination, 
 the school board must publish at least a summary of the adopted 
 plans, each significant modification and resolution of items, 
 and each state board review and comment. 

    Subd. 2.    Rule exemptions.  The plan must identify the 
 rules of the state board of education from which the district 
 intends to request exemption, according to Minnesota Rules, part 
 3500.1000.  The plan may provide information about state laws 
 that deter or impair cooperation or combination.  

    Subd. 3.    Board formation.  The plan must state:  

    (1) whether the new district would have one elected school 
 board or whether it would have one elected school board and one 
 elected board for each elementary school exercising powers and 
 duties delegated to it by the school board of the entire 
 district; 

    (2) how many of the existing members of each district would 
 become members of the school board of the combined district and, 
 if so, a method to gradually reduce the membership to six or 
 seven; and 

    (3) if desired, election districts that include the 
 establishment of separate areas from each of the combining 
 districts from which school board members will be elected, the 
 boundaries of these election districts, and the initial term of 
 the member elected from each of these election districts.  

    Subd. 4.    Administration.  The plan must provide for:  

    (1) selection of one superintendent for the combined 
 district at a specified time, according to section 123.34, 
 subdivision 9; and 

    (2) alterations, if any, in administrative personnel and 
 duties. 

    Subd. 5.    Employees.  The plan must state: 

    (1) procedures needed, at the time of combination, to 
 combine teachers into one bargaining unit, with the exclusive 
 representative determined according to section 122.532; 

    (2) procedures needed, at the time of combination, to 
 combine other bargaining units; 

    (3) procedures to negotiate, with the assistance of the 
 bureau of mediation services, an employment plan for licensed 
 employees affected by the agreement; 

    (4) procedures to negotiate, with the assistance of the 
 bureau of mediation services, an employment plan for nonlicensed 
 employees affected by the agreement; and 

    (5) incentives that may be offered to superintendents, 
 principals, teachers, and other licensed and nonlicensed 
 employees, such as early retirement, severance pay, and health 
 insurance benefits.  

    Subd. 6.    Academic programs.  The plan must set forth: 

    (1) elementary curriculum and programs; 

    (2) improvements in secondary course offerings in at least 
 communications, mathematics, science, social studies, foreign 
 languages, physical education, health, and career education; 

    (3) procedures for involving parents, teachers, and other 
 interested people in developing learner outcomes in curricular 
 areas; 

    (4) procedures for involving teachers in determining levels 
 of learner outcomes; 

    (5) implications for special education cooperatives, 
 secondary vocational cooperatives, joint powers agreements, 
 education districts, and other cooperative arrangements if the 
 districts combined and if they did not; and 

    (6) a description of the long-range educational services of 
 the combined district and of the individual districts if the 
 combination is not achieved.  

    Subd. 7.    Pupil activities.  The plan must provide for 
 combining extracurricular and cocurricular activities.  

    Subd. 8.    Referendum.  The plan must set forth:  

    (1) procedures for a referendum, held prior to the year of 
 the proposed combination, to approve combining the school 
 districts; and 

    (2) whether a majority of those voting in each district 
 proposed for combination or a majority of those voting on the 
 question in the entire area proposed for combination would be 
 needed to pass the referendum.  

    Subd. 9.    Finances.  The plan must state:  

    (1) whether debt service for the bonds outstanding at the 
 time of combination remains solely with the district that issued 
 the bonds or whether all or a portion of the debt service for 
 the bonds will be assumed by the combined district and paid by 
 the combined district on behalf of the district that issued the 
 bonds; 

    (2) whether obligations for a capital loan or energy loan 
 made according to section 216C.37 or sections 298.292 to 298.298 
 outstanding at the time of combination remain solely with the 
 district that obtained the loan, or whether all or a portion of 
 all the loan obligations will be assumed by the combined 
 district and paid by the combined district on behalf of the 
 district that obtained the loan; 

    (3) the treatment of debt service levies, down payment 
 levies under section 124.82, and referendum levies; 

    (4) whether the cooperating or combined district will levy 
 for reorganization operating debt according to section 121.915, 
 clause (1); and 

    (5) two- and five-year projections, prepared by the 
 department of children, families, and learning upon the request 
 of any district, of revenues, expenditures, and property taxes 
 for each district if it cooperated and combined and if it did 
 not. 

    Subd. 10.    Building sites.  The plan must provide for: 

    (1) locations for elementary schools which need not be 
 altered and may contain assurances that, to the extent feasible, 
 elementary schools will be retained for at least the number of 
 years specified in the plan; and 

    (2) one location, if possible, for a secondary school.  

    Subd. 11.    Timing.  The plan must contain a time 
 schedule for implementation.  

    HIST: 1989 c 329 art 6 s 6; 1991 c 265 art 6 s 12; 1992 c 499 
 art 6 s 9; 1993 c 224 art 6 s 5; 1995 c 8 s 2; 1Sp1995 c 3 art 
 16 s 13 

     122.243 State board and voter approval. 

    Subdivision 1.    Commissioner approval.  Before 
 submitting the question of combining school districts to the 
 voters at a referendum, the cooperating districts shall submit 
 the proposed combination to the commissioner of children, 
 families, and learning.  The commissioner shall determine the 
 date for submission and may require any information it 
 determines necessary.  The commissioner shall disapprove the 
 proposed combination if it is educationally unsound, will not 
 reasonably enable the combined district to fulfill statutory and 
 rule requirements, or if the plan or modifications are 
 incomplete.  If disapproved by the commissioner, the referendum 
 shall be postponed, but not canceled, by the school boards. 

    Subd. 2.    Voter approval.  A referendum on the 
 question of combination shall be conducted during the first or 
 second year of cooperation for districts that cooperate 
 according to section 122.241, or no more than 18 months before 
 the effective date of combination for districts that do not 
 cooperate.  The referendum shall be on a date called by the 
 school boards.  The referendum shall be conducted by the school 
 boards according to the Minnesota election law, as defined in 
 section 200.01.  If the referendum fails, the same question or a 
 modified question may be submitted.  If the referendum fails 
 again, the districts shall modify their cooperation and 
 combination plan.  A third referendum may be conducted.  If a 
 second or third referendum is conducted after October 1, the 
 newly combined district may not levy under section 124.2725 
 until the following year.  Referendums shall be conducted on the 
 same date in all districts. 

    HIST: 1989 c 329 art 6 s 7; 1990 c 562 art 6 s 5; 1991 c 265 
 art 6 s 13; 1992 c 499 art 6 s 10; 1993 c 224 art 6 s 6; art 13 
 s 15; 1Sp1995 c 3 art 16 s 13 

     122.244 Effective date of combination. 

    The effective date for combination of districts shall be 
 July 1.  

    HIST: 1989 c 329 art 6 s 8 

     122.245 Employees of cooperating and combining districts.

    Subdivision 1.    Combined seniority list.  During the 
 school year before the cooperation begins and during the school 
 years of cooperation, the districts shall comply with section 
 122.541, subdivision 5, unless compatible plans are negotiated 
 according to section 122.541, subdivision 4.  The districts 
 shall comply with section 122.532. 

    Subd. 2.    Nonlicensed employees termination.  If 
 compatible plans are not negotiated according to section 
 122.242, subdivision 5, the school boards shall comply with this 
 subdivision with respect to nonlicensed employees.  Nonlicensed 
 employees whose positions are discontinued as a result of 
 cooperation or combination, as applicable, shall be:  

    (1) employed by a cooperating board or the combined board, 
 if possible; 

    (2) assigned to work in a cooperating district or the 
 combined district, if possible; or 

    (3) terminated in the inverse order in which they were 
 employed in a district, according to a combined seniority list 
 of nonlicensed employees in the cooperating or combined 
 district, as applicable.  

    Subd. 3.    Employment laws.  Unless otherwise 
 explicitly provided, chapter 179A governs the rights and duties 
 of employers and employees.  Either party may promptly submit 
 questions of procedure, interpretation, or application to the 
 commissioner of mediation services.  

    HIST: 1989 c 329 art 6 s 9 

     122.246 County auditor plat. 

    Upon the request of two or more districts that have adopted 
 a resolution to cooperate and combine, the county auditor shall 
 prepare a plat.  If the proposed combined district is located in 
 more than one county, the request shall be submitted to the 
 county auditor of the county that has the greatest land area in 
 the proposed district.  The plat shall show: 

    (1) the boundaries of each of the present districts; 

    (2) the boundaries of the proposed district; 

    (3) the boundaries of proposed election districts, if 
 requested; and 

    (4) other information deemed pertinent by the school boards 
 or the county auditor. 

    HIST: 1989 c 329 art 6 s 10 

     122.247 Levies for districts at the time of combination. 

    Subdivision 1.    Referendum revenues.  The referendum 
 revenue authorization of the combined district shall be one of 
 the methods set forth in section 122.531, subdivision 2a, 2b, or 
 2c, and must be consistent with the plan adopted according to 
 section 122.242, and any subsequent modifications. 

    Subd. 2.    Bonded debt.  Debt service for bonds 
 outstanding at the time of the combination may be levied by the 
 combined school board consistent with the plan adopted according 
 to section 122.242, and any subsequent modifications, subject to 
 section 475.61.  The primary obligation to pay the bonded 
 indebtedness that is outstanding on the effective date of 
 combination remains with the district that issued the bonds.  
 However, the combined district may make debt service payments on 
 behalf of a preexisting district. 

    Subd. 2a.    Capital loan.  The combined school board 
 may levy for the obligations for a capital loan outstanding at 
 the time of combination, consistent with the plan adopted 
 according to section 122.242 and any subsequent modifications.  
 The primary obligation to levy as required by the capital loan 
 remains with taxable property in the preexisting district that 
 obtained the capital loan.  However, the obligation of a capital 
 loan may be extended to all of the taxable property in the 
 combined district. 

    Subd. 3.    Transitional levy.  The board of the 
 combined district, or the boards of combining districts that 
 have received voter approval for the combination under section 
 122.243, subdivision 2, may levy for the expenses of 
 negotiation, administrative expenses directly related to the 
 transition from cooperation to combination, and the cost of 
 necessary new athletic and music uniforms.  The board or boards 
 may levy this amount over three or fewer years.  All expenses 
 must be approved by the commissioner of children, families, and 
 learning.  

    HIST: 1989 c 329 art 6 s 11; 1991 c 265 art 6 s 14,15; 1992 c 
 499 art 12 s 5; 1993 c 224 art 13 s 16; 1Sp1995 c 3 art 16 s 13 

     122.248 Reports to department of children, families, and 
  learning. 

    Cooperating districts may submit joint reports and jointly 
 provide information required by the department of children, 
 families, and learning.  The joint reports must allow 
 information to be attributed to each district.  A combined 
 district must report and provide information as a single unit.  

    HIST: 1989 c 329 art 6 s 12; 1Sp1995 c 3 art 16 s 13 

   122.25 Common district to independent district. 

    Subdivision 1.  If six or more eligible voters of a common 
 district desire to change the organization of their district to 
 an independent district, they may call for a vote upon the 
 question at the next annual meeting by filing a petition 
 therefor with the clerk.  In the notice for the meeting, the 
 clerk shall include a statement that the question will be voted 
 upon at the meeting. 

    Subd. 2.  At the annual meeting, if a majority of the votes 
 cast on the question favors the conversion to an independent 
 district, a board of six members shall be elected.  Nominations 
 may be made from the floor of the meeting and election shall be 
 by secret ballot.  All board members elected at this meeting 
 shall serve for terms expiring on the third Tuesday in May next 
 following the election on which date a regular annual election 
 shall be held in the manner provided by law.  At this first 
 annual election for independent districts, six directors shall 
 be elected, two to hold office until July 1 following the next 
 annual election, two to hold office until the expiration of one 
 year from said July 1 and two to hold office until the 
 expiration of two years from said July 1; the time which each 
 director shall hold office being designated on the ballot.  

    Subd. 3.  If the organization of the district is changed 
 from common to independent at the meeting, the clerk shall 
 forthwith notify the auditor and the commissioner.  

    Upon receipt of such notification, the commissioner shall 
 forthwith assign a new identification number to the district and 
 shall notify the auditor and the clerk of the district thereof.  

    Subd. 4.  As of the date of election, if a majority of 
 votes cast on the question favor the conversion to an 
 independent district, the classification of the district is 
 changed from common to independent.  Title to all the property, 
 real and personal, of the common district passes to the 
 independent district and all current outstanding contractual 
 obligations, including the bonded indebtedness, if any, of the 
 common district, together with any legally valid and enforceable 
 claims against the common district are imposed on the 
 independent district.  

    Subd. 5.  Upon receipt of the identification number from 
 the commissioner, the clerk of the district shall record such 
 change of number with the county recorder in any county in which 
 the common district owns any real estate. 

    HIST: Ex1959 c 71 art 3 s 9; 1976 c 181 s 2; 1980 c 609 art 6 
 s 13; 1987 c 266 art 2 s 7 

   122.26 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.26 MS 1976 Repealed, 1978 c 706 s 69 

  122.27 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.28 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.29 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.30 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.31 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.31 MS 1974 Repealed, 1975 c 162 s 42 

   122.32 Remaining districts, action of county board; 
  election. 

    Subdivision 1.  If there be any organized school district 
 not maintaining a classified school within the district, except 
 those districts which have a contract with a state university or 
 with the board of regents of the University of Minnesota for the 
 education of all the children of the district, such district 
 shall hereby be dissolved as of the date the district ceases to 
 maintain a classified school.  Any such district not maintaining 
 a classified school shall forthwith be attached by order of the 
 county board to such district maintaining classified elementary 
 or secondary schools upon notice and hearing as provided in 
 section 122.22 for the attachment of dissolved districts. 

    Subd. 2.  Prior to the order of the county board, the board 
 may direct the county auditor to call a special election in the 
 manner and form in which district elections are held.  The 
 purpose of the election shall be to determine to which district 
 or districts the dissolved district shall be attached.  The 
 county board after hearing shall determine the form of question 
 as it should appear on the ballot.  The results of the election 
 shall be advisory in nature only. 

    Subd. 3.  The results of the election shall be certified by 
 the county auditor to the county board and within 45 days after 
 such election the county board shall issue its order dissolving 
 the district.  The order shall also attach the dissolved 
 district to a proper district as determined by the county board, 
 and a copy of such order shall be filed with the commissioner of 
 children, families, and learning.  Title to all the property, 
 real and personal, of the district dissolved passes to the 
 district to which such dissolved district is attached.  If a 
 district is divided by virtue of the proceedings the county 
 board shall issue its order providing for the division of the 
 current assets and liabilities according to such terms as it may 
 deem just and equitable.  If the order of the county board 
 attaches any land area to a district with bonded debt, the 
 taxable property in such area assumes its proportionate share of 
 the authorized and outstanding debt of the district to which it 
 is attached. 

    HIST: 1963 c 547 s 2; 1965 c 280 s 1; 1975 c 162 s 14; 1975 c 
 321 s 2; 1Sp1995 c 3 art 16 s 13; 1996 c 412 art 13 s 9 

  122.33 Repealed, 1975 c 162 s 42 

     122.34 Private schools in nonoperating districts. 

    Section 122.32 shall not apply to any school district in 
 which is located any existing private school maintaining 
 elementary and secondary education for 75 percent of eligible 
 pupils within the district and complying with the requirements 
 of section 120.101.  

    HIST: 1963 c 547 s 4; 1978 c 706 s 10; 1989 c 209 art 2 s 1 

  122.35 Repealed, 1975 c 162 s 42 

     122.355 Border districts; continued operation. 

    Subdivision 1.  The common school districts situated along 
 the border of the state of Minnesota and the state of Wisconsin 
 which have, for the preceding 25 years, prior to May 26, 1965 
 been educating pupils of their district in school districts in 
 Wisconsin may continue to operate as common school districts 
 notwithstanding that any of such school districts do not 
 maintain classified schools.  Such school districts are not 
 subject to the terms and provisions of sections 122.32 to 122.52.

    Subd. 2.  The provisions of subdivision 1 shall remain in 
 effect as long as the school district does not discontinue the 
 practice of education for their district as described in 
 subdivision 1. 

    HIST: 1965 c 739 s 1; 1969 c 541 s 1; 1975 c 162 s 15; 1976 c 
 2 s 57 

  122.40 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   122.41 Duty to maintain elementary and secondary schools.

    Each school district shall maintain classified elementary 
 and secondary schools, grades 1 through 12, unless the district 
 is exempt according to section 122.34 or 122.355, has made an 
 agreement with another district or districts as provided in 
 sections 122.535, 122.541, or sections 122.241 to 122.248, or 
 122.93, subdivision 8, or has received a grant under sections 
 124.492 to 124.495.  A district that has an agreement according 
 to sections 122.241 to 122.248 or 122.541 shall operate a school 
 with the number of grades required by those sections.  A 
 district that has an agreement according to section 122.535 or 
 122.93, subdivision 8, or has received a grant under sections 
 124.492 to 124.495 shall operate a school for the grades not 
 included in the agreement, but not fewer than three grades.  

    HIST: 1967 c 833 s 1; 1975 c 162 s 16; 1979 c 211 s 1; 1983 c 
 314 art 8 s 5; 1989 c 329 art 6 s 13; 1991 c 265 art 9 s 31 

   122.42 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.42 MS 1971 Temporary 

   122.43 Phase out of dissolved district.  

    Subdivision 1. Repealed, 1991 c 265 art 9 s 75 

    Subd. 2.  The board of each district so dissolved shall 
 continue to maintain school until all its territory has been 
 attached to a proper district not later than July 1.  Such 
 boards shall only make such contracts and do such things as are 
 necessary to maintain schools properly for the period they may 
 be in session prior to the attachment.  

    HIST: 1967 c 833 s 3; 1975 c 162 s 17; 1979 c 211 s 2; 1983 c 
 314 art 8 s 6; 1989 c 329 art 6 s 14 

   122.44 Procedure for attachment to organized districts. 

    Subdivision 1.  Upon notice and hearing, as provided in 
 section 122.22 for the attachment of dissolved districts, all 
 territory of school districts dissolved by sections 122.41 to 
 122.52 and all area of the state not in a district maintaining 
 classified elementary and secondary schools shall be attached by 
 order of the county board to organized districts maintaining 
 classified elementary and secondary schools, grades 1 through 
 12, unless a district has made an agreement with another 
 district or districts as provided in section 122.535 or 122.541. 

    Subd. 2.  Repealed, 1975 c 162 s 42 

    Subd. 3.  Repealed, 1975 c 162 s 42 

    Subd. 4.  Repealed, 1975 c 162 s 42 

    Subd. 5.  Repealed, 1975 c 162 s 42 

    HIST: 1967 c 833 s 4; 1969 c 364 s 7-9; 1975 c 162 s 18; 1979 
 c 211 s 3; 1983 c 314 art 8 s 7 

   122.45 Allocation of assets and liabilities; levy. 

    Subdivision 1.  Title to all the property, real and 
 personal, of any district dissolved under the provisions of 
 sections 122.41 to 122.52 and all legally valid and enforceable 
 claims and contract obligations, pass to the district to which 
 such dissolved district is attached.  If a district is divided 
 by virtue of the proceedings, the commissioner shall issue a 
 subsequent order providing for the division of the assets and 
 liabilities according to such terms as the commissioner may deem 
 just and equitable. 

    Subd. 2.  As of the effective date of the attachment, all 
 the taxable property in the newly enlarged district is taxable 
 for the payment of any bonded debt theretofore incurred by any 
 component district in the proportion which the net tax capacity 
 of that part of a preexisting district which is included in the 
 newly enlarged district bears to the net tax capacity of the 
 entire preexisting district as of the time of the attachment.  
 This apportionment shall be made by the county auditor and shall 
 be incorporated as an annex to the order of the commissioner 
 dividing the assets and liabilities of the component parts.  
 This subdivision shall not relieve any property from any tax 
 liability for payment of any bonded obligation but taxable 
 property in the newly enlarged district becomes primarily liable 
 for the payment of bonded debts to the extent of the proportion 
 stated. 

    Subd. 3.  Repealed, Ex1971 c 31 art 20 s 25 

    Subd. 3a.  (a) Liabilities of a dissolved district existing 
 at the time of the attachment other than bonded debt within the 
 purview of subdivision 2 shall be obligations of the 
 consolidated district after attachment (in the amount and kind 
 determined by the commissioner according to subdivision 1, where 
 a dissolved district is divided), for the payment of which the 
 consolidated district has a right to reimbursement by special 
 levy or levies.  The amount of reimbursement will be equal to 
 the liabilities of the dissolved district for which the 
 consolidated district is obligated less the aggregate of the 
 following which has been or will be received by the consolidated 
 district at or after the time of attachment from or as a result 
 of the dissolution and attachment of the dissolved district: 

    (1) all taxes inuring to the consolidating district upon 
 levies made by the dissolved district; 

    (2) all cash, bank accounts, investments, and other current 
 assets; 

    (3) earned state aids of the dissolved districts; 

    (4) returns from the sale of property of the dissolved 
 district. 

    (b) The amount of such special levy so computed shall be 
 certified to the county auditor with the other tax requirements 
 of the consolidated district but separately stated and 
 identified.  The auditor shall add the amount of special levy so 
 certified to the school rate for the territory in the 
 consolidated district which came from the dissolved district and 
 include it in the levy on the taxable property in that 
 territory; provided, the county auditor shall not spread more of 
 the amount certified for special levy in any year than will 
 amount to 20 percent of the school levy without the special 
 levy, leaving the remaining part of the certified amount for 
 levy in successive years without further certification.  Any 
 amount of reimbursement to which it is entitled omitted by the 
 consolidated district from its initial certification for special 
 levy may be certified in a subsequent year for levy in the same 
 manner as the levy upon initial certification. 

    The levy authorized by this subdivision shall be in 
 addition to those otherwise authorized for a school district. 

    HIST: 1967 c 833 s 5; Ex1971 c 31 art 20 s 20; 1975 c 162 s 
 19,41; 1976 c 271 s 36-38; 1983 c 314 art 1 s 22; 1986 c 444; 
 1988 c 486 s 12; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20 

   122.46 Officers and teachers, transitional provisions. 

    Subdivision 1.  The board of the district maintaining a 
 secondary school to which district is attached territory of 
 districts discontinued by sections 122.41 to 122.52 shall assume 
 the duties and responsibilities of the board of the district so 
 enlarged for the balance of the term to which the members were 
 elected.  At the next annual school election the successors to 
 the members whose terms then expire shall be elected by the 
 legally qualified voters of the newly enlarged district.  
 Thereafter board members shall be elected according to the 
 election procedure established for the election of board members 
 in independent districts. 

    Subd. 2.  Repealed, 1978 c 764 s 143 

    HIST: 1967 c 833 s 6 

   122.47 Special school districts, application.  

    When provisions of sections 122.41 to 122.52 are made to 
 apply to any special school district such district shall hereby 
 be converted to an independent school district on the effective 
 date specified in the orders issued under provisions of sections 
 122.41 to 122.52.  All applicable provisions of Minnesota 
 Statutes 1965, section 122.26, relating to such conversions 
 shall otherwise be in force.  To the extent that any law or 
 charter provision of any special district is inconsistent with 
 the status of an independent school district or the powers 
 common to independent school districts, such law or charter 
 provision is hereby repealed.  Provided, however, that nothing 
 in sections 122.41 to 122.52 shall in any way invalidate 
 remaining portions of such laws or home rule charters, or the 
 continuance of such special school districts to which no new 
 territory is attached under the provisions of sections 122.41 to 
 122.52.  

    HIST: 1967 c 833 s 7 

   122.48 Private schools. 

    Sections 122.41 to 122.46 shall not apply to any school 
 district in which is located any existing private school 
 maintaining elementary and secondary education for 75 percent of 
 the eligible pupils within the district and complying with the 
 requirements of section 120.101. 

    HIST: 1967 c 833 s 8; 1975 c 162 s 41; 1989 c 209 art 2 s 1 

   122.49 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.49 MS 1974 Repealed, 1975 c 162 s 42 

   122.50 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.50 MS 1969 Expired 

   122.51 Appeal.  

    The appeal provisions of section 127.25 shall be applicable 
 only after the county board has issued its final order of 
 attachment under section 122.22.  

    HIST: 1967 c 833 s 11; 1975 c 162 s 20 

   122.52 Severability.  

    The provisions of sections 122.41 to 122.52 shall be 
 construed to be severable.  In the event a particular provision 
 may be determined to be invalid, such determination shall not 
 affect any other provision of sections 122.41 to 122.52.  

    HIST: 1967 c 833 s 12 

   122.53 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.53 MS 1976 Repealed, 1978 c 764 s 143 

     122.531 Levy limitations of reorganized districts. 

    Subdivision 1.    Definitions.  The terms defined in 
 chapters 124 and 124A have the same meaning when they are used 
 in this section, unless otherwise clearly indicated.  

    Subd. 1a.    Involuntary dissolution referendum revenue. 
  As of the effective date of the involuntary dissolution of a 
 district and its attachment to one or more existing districts 
 pursuant to sections 122.32, or 122.41 to 122.52, the 
 authorization for any referendum revenue previously approved by 
 the voters of the dissolved district in that district pursuant 
 to section 124A.03, subdivision 2, or its predecessor or 
 successor provision, is canceled.  The authorization for any 
 referendum revenue previously approved by the voters of a 
 district to which all or part of the dissolved district is 
 attached shall not be affected by the attachment and shall apply 
 to the entire area of the district as enlarged by the attachment.

    Subd. 2.    Voluntary dissolution:  referendum revenue.  
 As of the effective date of the voluntary dissolution of a 
 district and its attachment to one or more existing districts 
 pursuant to section 122.22, the authorization for all referendum 
 revenues previously approved by the voters of all affected 
 districts for those districts pursuant to section 124A.03, 
 subdivision 2, or its predecessor provision, is canceled.  
 However, if all of the territory of any independent district is 
 included in the enlarged district, and if the adjusted net tax 
 capacity of taxable property in that territory comprises 90 
 percent or more of the adjusted net tax capacity of all taxable 
 property in an enlarged district, the enlarged district's 
 referendum revenue shall be determined as follows: 

    If the referendum revenue previously approved in the 
 preexisting district is authorized as a tax rate, the referendum 
 revenue in the enlarged district is the tax rate times the net 
 tax capacity of the enlarged district.  If referendum revenue 
 previously approved in the preexisting district is authorized as 
 revenue per actual pupil unit, the referendum revenue shall be 
 the revenue per actual pupil unit times the number of actual 
 pupil units in the enlarged district.  If referendum revenue in 
 the preexisting district is authorized both as a tax rate and as 
 revenue per actual pupil unit, the referendum revenue in the 
 enlarged district shall be the sum of both plus any referendum 
 revenue in the preexisting district authorized as a dollar 
 amount.  Any new referendum revenue shall be authorized only 
 after approval is granted by the voters of the entire enlarged 
 district in an election pursuant to section 124A.03, subdivision 
 2. 

    Subd. 2a.    Consolidation; maximum authorized referendum 
 revenues.  As of the effective date of a consolidation 
 pursuant to section 122.23, if the plan for consolidation so 
 provides, or if the plan for consolidation makes no provision 
 concerning referendum revenues, the authorization for all 
 referendum revenues previously approved by the voters of all 
 affected districts for those districts pursuant to section 
 124A.03, subdivision 2, or its predecessor provision shall be 
 recalculated as provided in this subdivision.  The referendum 
 revenue authorization for the newly created district shall be 
 the net tax capacity rate that would raise an amount equal to 
 the combined dollar amount of the referendum revenues authorized 
 by each of the component districts for the year preceding the 
 consolidation, unless the referendum revenue authorization of 
 the newly created district is subsequently modified pursuant to 
 section 124A.03, subdivision 2.  If the referendum revenue 
 authorizations for each of the component districts were limited 
 to a specified number of years, the referendum revenue 
 authorization for the newly created district shall continue for 
 a period of time equal to the longest period authorized for any 
 component district.  If the referendum revenue authorization of 
 any component district is not limited to a specified number of 
 years, the referendum revenue authorization for the newly 
 created district shall not be limited to a specified number of 
 years.  

    Subd. 2b.    Alternative method.  As of the effective 
 date of a consolidation pursuant to section 122.23, if the plan 
 for consolidation so provides, the authorization for all 
 referendum revenues previously approved by the voters of all 
 affected districts for those districts pursuant to section 
 124A.03, subdivision 2, or its predecessor provision shall be 
 combined as provided in this subdivision.  The referendum 
 revenue authorization for the newly created district may be any 
 allowance per actual pupil unit provided in the plan for 
 consolidation, but may not exceed the allowance per actual pupil 
 unit that would raise an amount equal to the combined dollar 
 amount of the referendum revenues authorized by each of the 
 component districts for the year preceding the consolidation.  
 If the referendum revenue authorizations for each of the 
 component districts were limited to a specified number of years, 
 the referendum revenue authorization for the newly created 
 district shall continue for a period of time equal to the 
 longest period authorized for any component district.  If the 
 referendum revenue authorization of any component district is 
 not limited to a specified number of years, the referendum 
 revenue authorization for the newly created district shall not 
 be limited to a specified number of years.  The referendum 
 revenue authorization for the newly created district may be 
 modified pursuant to section 124A.03, subdivision 2. 

    Subd. 2c.  If the plan for consolidation provides for 
 discontinuance of referendum revenue previously approved by 
 voters of the component districts pursuant to section 124A.03, 
 subdivision 2, or its predecessor provision, the newly created 
 district shall not receive referendum revenue unless the voters 
 of the newly created district authorize referendum revenue 
 pursuant to section 124A.03, subdivision 2. 

    Subd. 2d.    Consolidation; referendum levy computation. 
  The levy part of the referendum revenue authorized under 
 subdivision 2a or 2b may be levied against all taxable property 
 in the newly created district as provided in this subdivision.  
 If the entire amount of the referendum levy in each of the 
 component districts had been levied against the net tax capacity 
 of all taxable property in the district, the referendum levy for 
 the newly created district must be levied against the net tax 
 capacity of all taxable property in the newly created district.  
 If the entire amount of the referendum levy in each of the 
 component districts had been levied against the market value of 
 all taxable property in the district, the referendum levy for 
 the newly created district must be levied against the market 
 value of all taxable property in the newly created district.  If 
 a part of the referendum levy in one or more of the component 
 districts was levied against the net tax capacity of all taxable 
 property in the district and a part of the referendum levy in 
 one or more of the component districts had been levied against 
 the market value of all taxable property in the district, and 
 the plan for consolidation so provides, or the plan for 
 consolidation makes no provision concerning referendum levies, 
 the entire amount of the referendum levy for the newly created 
 district must be levied against the net tax capacity of all 
 taxable property in the newly created district.  Alternatively, 
 if a portion of the referendum levy in one or more of the 
 component districts had been levied against the net tax capacity 
 of all taxable property in the district and a portion of the 
 referendum levy in one or more of the component districts was 
 levied against the market value of all taxable property in the 
 district, and the plan for consolidation so provides, the entire 
 amount of the referendum levy for the newly created district 
 must be levied against the market value of all taxable property 
 in the newly created district. 

    Subd. 3. Repealed, 1980 c 609 art 1 s 14 

    Subd. 3a. Repealed, 1Sp1985 c 12 art 1 s 37 subd 1 

    Subd. 4.    Taxable property.  As of the effective date 
 of a consolidation of districts or the dissolution of a district 
 and its attachment to one or more existing districts pursuant to 
 chapter 122, and subject to the conditions of section 124.914, 
 subdivision 1, all the taxable property which is in the newly 
 created or enlarged district and which was previously taxable 
 for the payment of any statutory operating debt theretofore 
 incurred by any preexisting district of which the taxable 
 property was a part prior to the consolidation or dissolution 
 and attachment shall remain taxable for the payment of that debt 
 and shall not become taxable for the payment of any statutory 
 operating debt theretofore incurred by any preexisting district 
 of which the taxable property was not a part prior to the 
 consolidation or dissolution and attachment.  The amount of 
 statutory operating debt attributable to that taxable property 
 and to the newly created or enlarged district in which it is 
 located, and the amount of a preexisting district's reserved 
 fund balance reserve account for purposes of statutory operating 
 debt reduction attributable to the newly created or enlarged 
 district, shall be apportioned according to the proportion which 
 the adjusted net tax capacity of that part of the preexisting 
 district bears to the total adjusted net tax capacity of the 
 entire preexisting district at the time of the consolidation or 
 dissolution and attachment.  This apportionment shall be made by 
 the county auditor and shall be incorporated as an annex to the 
 order of the commissioner dividing the assets and liabilities of 
 the component districts.  As used in this section, "statutory 
 operating debt" shall have the meaning given it in section 
 121.914. 

    Subd. 4a.    Reorganization operating debt levies.  (a) 
 A district that receives revenue under section 124.2725 for 
 cooperation or has combined according to sections 122.241 to 
 122.248 may levy to eliminate reorganization operating debt as 
 defined in section 121.915, clause (1).  The amount of the debt 
 must be certified over a period of five years.  After the 
 effective date of combination according to sections 122.241 to 
 122.248, the levy may be certified and spread either 

    (1) only on the property in the combined district that 
 would have been taxable in the preexisting district that 
 incurred the debt, or 

    (2) on all of the taxable property in the combined district.

    (b) A district that has reorganized according to section 
 122.22 or 122.23 may levy to eliminate reorganization operating 
 debt as defined in section 121.915, clause (2).  The amount of 
 debt must be certified over a period not to exceed five years 
 and may be spread either 

    (1) only on the property in the newly created or enlarged 
 district which was taxable in the preexisting district that 
 incurred the debt, or 

    (2) on all of the taxable property in the newly created or 
 enlarged district. 

    Subd. 5. Repealed, 1991 c 265 art 1 s 33 

    Subd. 5a.    Supplemental revenue.  (a) For purposes of 
 computing the supplemental revenue and the minimum allowance 
 under section 124A.22, subdivision 9, paragraph (b), in the case 
 of a consolidation, the newly created district's 1991-1992 
 revenue and 1991-1992 actual pupil units are the sum of the 
 1991-1992 revenue and 1991-1992 pupil units, respectively, of 
 the former districts comprising the new district. 

    (b) For purposes of computing the supplemental revenue and 
 the minimum allowance under section 124A.22, subdivision 9, 
 paragraph (b), in the case of a dissolution and attachment, a 
 district's 1991-1992 revenue is the revenue of the existing 
 district plus the result of the following calculation: 

    (1) the 1991-1992 revenue of the dissolved district divided 
 by 

    (2) the dissolved district's 1991-1992 actual pupil units, 
 multiplied by 

    (3) the pupil units of the dissolved district in the most 
 recent year before the dissolution allocated to the newly 
 created or enlarged district. 

    (c) In the case of a dissolution and attachment, the 
 department of children, families, and learning shall allocate 
 the pupil units of the dissolved district to the newly enlarged 
 district based on the allocation of the property on which the 
 pupils generating the pupil units reside. 

    Subd. 6.    Aid deductions.  For purposes of determining 
 deductions from general education aid, if any, required by 
 section 124A.23, subdivision 4, for a district newly created 
 through consolidation or enlarged through the dissolution of a 
 district and its attachment to one or more other districts, in 
 the year when the consolidation or dissolution and attachment 
 becomes effective, there shall be used in lieu of the ratio of 
 the district's actual levy to its permitted levy in the 
 applicable year, the quotient obtained by dividing: 

    (a) the sum of the products derived for each component 
 district by multiplying the component district's actual levy in 
 the applicable year pursuant to the applicable subdivision, 
 times the ratio of the amount of the adjusted net tax capacity 
 of the property from the component district that is included in 
 the new district to the total amount of the adjusted net tax 
 capacity of the new district; by 

    (b) the sum of the products derived for each component 
 district by multiplying the component district's permitted levy 
 in the applicable year pursuant to the applicable subdivision, 
 times the ratio of the amount of the adjusted net tax capacity 
 of the property from the component district that is included in 
 the new district to the total amount of the adjusted net tax 
 capacity of the new district. 

    Subd. 7. Repealed, 1981 c 358 art 1 s 49 

    Subd. 8. Repealed, 1988 c 486 s 102 

    Subd. 9.    Levy for severance pay or early retirement 
 incentives.  The school board of a newly created or enlarged 
 district to which part or all of a dissolved district was 
 attached according to section 122.22 may levy for severance pay 
 or early retirement incentives for licensed and nonlicensed 
 employees who resign or retire early as a result of the 
 dissolution or consolidation, if the commissioner of children, 
 families, and learning approves the incentives and the amount to 
 be levied.  The amount may be levied over a period of up to five 
 years and shall be spread in whole or in part on the property of 
 a preexisting district or the newly created or enlarged 
 district, as determined by the school board of the newly created 
 or enlarged district. 

    HIST: 1978 c 764 s 26; 1979 c 50 s 12; 1980 c 509 s 31; 1980 c 
 609 art 1 s 1-4; 1981 c 358 art 1 s 3-7; 1983 c 314 art 1 s 22; 
 art 6 s 4; art 7 s 11-14; 1985 c 248 s 31, 32; 1Sp1985 c 12 art 
 1 s 1,2; 1987 c 398 art 7 s 42; 1988 c 486 s 13,14; 1988 c 719 
 art 5 s 84; 1989 c 329 art 13 s 20; 1991 c 130 s 37; 1991 c 265 
 art 1 s 3; art 6 s 16; 1992 c 499 art 1 s 3-5; art 6 s 11-13; 
 art 12 s 6,7,29; 1994 c 647 art 6 s 8; 1995 c 212 art 4 s 64; 
 1Sp1995 c 3 art 16 s 13 

     122.5311 Obligations upon district reorganization. 

    Subdivision 1.    Capital loan obligations.  If a 
 district has a capital loan outstanding at the time of 
 reorganization according to section 122.22, 122.23, or sections 
 122.241 to 122.248, and if the plan for reorganization provides 
 for payment of all or a portion of the capital loan obligation 
 by the newly created or enlarged district or makes no provision 
 for payment, all of the taxable property in the newly created or 
 enlarged district is taxable for the payment to the extent 
 stated in the plan.  Notwithstanding any contract to the 
 contrary, if all of the taxable property in the newly created or 
 enlarged district is taxable for the payment of the capital loan 
 and until the capital loan is retired or canceled, the maximum 
 effort debt service levy shall be recalculated annually by the 
 department of children, families, and learning to be equal to 
 the required debt service levy plus an additional amount.  The 
 additional amount shall be the greater of: 

    (i) zero, or 

    (ii) the maximum effort debt service levy of the 
 preexisting district minus the required debt service levy of the 
 preexisting district that received the capital loan. 

    For the purpose of the recalculation, additional bond 
 issues after the date of the reorganization shall not impact the 
 maximum effort debt service levy or the required debt service 
 levy. 

    Notwithstanding any contract to the contrary, the plan for 
 reorganization may specify that the obligation for a capital 
 loan remains solely with the preexisting district that incurred 
 the obligation.  This subdivision does not relieve any property 
 from any tax liability for payment of any capital loan 
 obligation. 

    Subd. 2.    Energy loan obligations.  If a district has 
 an energy loan outstanding at the time of reorganization 
 according to section 122.22, 122.23, or sections 122.241 to 
 122.248, and if the plan for reorganization provides for payment 
 of all or a portion of the energy loan obligation by the newly 
 created or enlarged district or makes no provision for payment, 
 all of the taxable property in the newly created or enlarged 
 district is taxable for the payment.  

    Notwithstanding any contract to the contrary, the plan for 
 reorganization may specify that the obligation for an energy 
 loan remains solely with the preexisting district that incurred 
 the obligation.  This subdivision does not relieve any property 
 from any tax liability for payment of any energy loan obligation.

    HIST: 1991 c 265 art 6 s 17; 1Sp1995 c 3 art 16 s 13 

     122.532 Employees of reorganized districts. 

    Subdivision 1.    Definition; teacher.  For purposes of 
 this section, the term "teacher" shall have the meaning 
 attributed to it in section 125.12, subdivision 1. 

    Subd. 2.    Teacher assignment.  (a) As of the effective 
 date of a consolidation in which a district is divided or the 
 dissolution of a district and its attachment to two or more 
 existing districts, each teacher employed by an affected 
 district shall be assigned to the newly created or enlarged 
 district on the basis of a ratio of the pupils assigned to each 
 district according to the new district boundaries.  The district 
 receiving the greatest number of pupils must be assigned the 
 teacher with the greatest seniority, and the remaining teachers 
 must be alternately assigned to each district until the district 
 receiving the fewest pupils has received its ratio of teachers 
 who will not be retiring before the effective date of the 
 consolidation or dissolution. 

    (b) Notwithstanding paragraph (a), the school board and the 
 exclusive representative of teachers in each school district 
 involved in the consolidation or dissolution and attachment may 
 negotiate a plan for assigning teachers to each newly created or 
 enlarged district. 

    Subd. 3.    Collective bargaining.  The organization 
 certified as the exclusive bargaining representative for the 
 teachers in the particular preexisting district which employed 
 the largest proportion of the teachers who are assigned to a new 
 employing district according to subdivision 2 shall be certified 
 as the exclusive bargaining representative for the teachers 
 assigned to that new employing district, until that organization 
 is decertified or another organization is certified in its place 
 pursuant to sections 179A.01 to 179A.25.  For purposes of 
 negotiation of a new contract with the board of the new 
 employing district and the certification of an exclusive 
 bargaining representative for purposes of that negotiation, the 
 teachers assigned to that district shall be considered an 
 appropriate unit of employees of that district as of the date 
 the county board orders its interlocutory order of dissolution 
 and attachment to be final and effective or as of the date the 
 commissioner assigns an identification number to a new district 
 created by consolidation.  During the school year before the 
 consolidation becomes effective, the newly elected board or the 
 board of the district to which a dissolved district is attached, 
 may place teachers assigned to it on unrequested leave of 
 absence as provided in section 125.12 according to:  (a) a plan 
 negotiated in a new master contract between it and the exclusive 
 bargaining representative of the teachers assigned to it, or (b) 
 if no such plan exists, an applicable plan negotiated in the 
 contract which according to this subdivision will temporarily 
 govern the terms and conditions of employment of teachers 
 assigned to it, or (c) if no plan exists pursuant to either (a) 
 or (b), the provisions of section 125.12, subdivision 6b, on the 
 basis of a combined seniority list of all teachers assigned to 
 it.  

    Subd. 3a.    Interim contractual agreements.  (a) Until 
 a successor contract is executed between the new school board 
 and the exclusive representative of the teachers of the new 
 district, the school boards of both districts and the exclusive 
 representatives of the teachers of both districts may agree: 

    (1) to comply with the contract of either district with 
 respect to all of the teachers assigned to the new district; or 

    (2) that each of the contracts shall apply to the teachers 
 previously subject to the respective contract.  

    (b) In the absence of an agreement according to paragraph 
 (a), the following shall apply: 

    (1) if the effective date is July 1 of an even-numbered 
 year, each of the contracts shall apply to the teachers 
 previously subject to the respective contract and shall be 
 binding on the new school board; or 

    (2) if the effective date is July 1 of an odd-numbered 
 year, the contract of the district that previously employed the 
 largest proportion of teachers assigned to the new district 
 applies to all of the teachers assigned to the new district and 
 shall be binding on the new school board.  The application of 
 this section shall not result in a reduction in a teacher's 
 basic salary, payments for cocurricular or extracurricular 
 assignments, district contributions toward insurance coverages 
 or tax-sheltered annuities, leaves of absence, or severance pay 
 until a successor contract is executed between the new school 
 board and the exclusive representative. 

    Subd. 4.    Contracts; termination; tenure.  Except as 
 provided in this section, the provisions of section 125.12 or 
 125.17 shall apply to the employment of each teacher by the new 
 employing district on the same basis as they would have applied 
 to the employment if the teacher had been employed by that new 
 district before the effective date of the consolidation or 
 dissolution and attachment.  For the purpose of applying the 
 provisions of subdivision 3, clause (c), and the provisions of 
 section 125.12, subdivision 6b, each school district must be 
 considered to have started school each year on the same date.  

    HIST: 1978 c 764 s 27; 1Sp1981 c 4 art 1 s 46; 1984 c 462 s 
 27; 1986 c 444; 1989 c 329 art 6 s 15-17; 1992 c 499 art 6 s 14; 
 1Sp1995 c 3 art 1 s 5 

     122.533 Expenses of transition. 

    The board of a district to which a dissolved district is 
 attached pursuant to section 122.22, may, for the purpose of 
 paying the expenses of negotiations and other administrative 
 expenses relating to the transition, enter into agreements with 
 banks or any person to take its orders at any rate of interest 
 not to exceed seven percent per annum.  These orders shall be 
 paid by the treasurer of the district from district funds after 
 the effective date of the dissolution and attachment.  
 Notwithstanding the provisions of sections 124.226, 124.2716, 
 124.91, 124.912, 124.914, 124.916, and 124.918, the district 
 may, in the year the dissolution and attachment becomes 
 effective, levy an amount equal to the amount of the orders 
 issued pursuant to this subdivision and the interest on these 
 orders.  No district shall issue orders for funds or make a levy 
 pursuant to this subdivision without the commissioner's approval 
 of the expenses to be paid with the funds from the orders and 
 levy. 

    HIST: 1978 c 764 s 28; 1991 c 130 s 37; 1992 c 499 art 12 s 
 29; 1994 c 647 art 6 s 9; 1995 c 212 art 4 s 64 

     122.535 Agreements for secondary education. 

    Subdivision 1.    Applicability.  The provisions of this 
 section shall apply to a district with fewer than 375 pupils 
 enrolled in grades 7 to 12.  

    Subd. 2.    Agreement.  The school board may enter into 
 one or more agreements providing for instruction of its 
 secondary pupils in one or more districts.  The agreement shall 
 be effective on July 1 and shall be for a specified or 
 indefinite number of years.  The agreement shall set forth the 
 obligations of transportation, the tuition to be paid to the 
 providing district, and all additional charges and fees to be 
 paid to the providing district.  The amount of tuition shall not 
 be subject to the provisions of section 124.18, subdivision 2.  
 The agreement may provide for negotiation of a plan for the 
 assignment or employment in a providing district as an exchange 
 teacher according to section 125.13, or placement on unrequested 
 leave of absence of teachers whose positions are discontinued as 
 a result of the agreement.  "Teacher" has the meaning given it 
 in section 125.12, subdivision 1.  

    Subd. 3.    Informational meeting.  Before entering into 
 agreements permitted by subdivision 2 of this section, the 
 school board shall hold a public hearing.  The board shall 
 publish notice of the hearing in the newspaper with the largest 
 circulation in the district.  If the board proposes to enter 
 into agreements with two or more districts, the board may 
 conduct separate or consolidated hearings.  

    Subd. 4.    Review and comment.  After the hearing 
 required by subdivision 3 and before entering into an agreement, 
 the board shall submit the agreement to the commissioner of 
 children, families, and learning for review and comment.  

    Subd. 5.    Aid payments.  A district entering into an 
 agreement permitted in subdivision 2 of this section shall 
 continue to count its resident pupils who are educated in other 
 districts as resident pupils in the calculation of pupil units 
 for the purposes of state aids, levy limitations, and any other 
 purpose.  A district may continue to provide transportation and 
 collect transportation aid for its resident pupils.  For 
 purposes of aid calculations, the commissioner of children, 
 families, and learning may adjust the cost per eligible pupil 
 transported to reflect changes in cost resulting from the 
 agreement, if any.  

    Subd. 6.    Severance pay.  A district shall pay 
 severance pay to a teacher who is placed on unrequested leave of 
 absence by the district as a result of the agreement.  A teacher 
 is eligible under this subdivision if the teacher: 

    (1) is a teacher, as defined in section 125.12, subdivision 
 1, but not a superintendent; 

    (2) has a continuing contract with the district according 
 to section 125.12, subdivision 4. 

    The amount of severance pay shall be equal to the teacher's 
 salary for the school year during which the teacher was placed 
 on unrequested leave of absence minus the gross amount the 
 teacher was paid during the 12 months following the teacher's 
 termination of salary, by an entity whose teachers by statute or 
 rule must possess a valid Minnesota teaching license, and minus 
 the amount a teacher receives as severance or other similar pay 
 according to a contract with the district or district policy.  
 These entities include, but are not limited to, the school 
 district that placed the teacher on unrequested leave of 
 absence, another school district in Minnesota, an education 
 district, an intermediate school district, a SC, a board formed 
 under section 471.59, a state residential academy, the Lola and 
 Rudy Perpich Minnesota center for arts education, a vocational 
 center, or a special education cooperative.  These entities do 
 not include a school district in another state, a Minnesota 
 public post-secondary institution, or a state agency.  Only 
 amounts earned by the teacher as a substitute teacher or in a 
 position requiring a valid Minnesota teaching license shall be 
 subtracted.  A teacher may decline any offer of employment as a 
 teacher without loss of rights to severance pay. 

    To determine the amount of severance pay that is due for 
 the first six months following termination of the teacher's 
 salary, the district may require the teacher to provide 
 documented evidence of the teacher's employers and gross 
 earnings during that period.  The district shall pay the teacher 
 the amount of severance pay it determines to be due from the 
 proceeds of the levy for this purpose.  To determine the amount 
 of severance pay that is due for the second six months of the 12 
 months following the termination of the teacher's salary, the 
 district may require the teacher to provide documented evidence 
 of the teacher's employers and gross earnings during that 
 period.  The district shall pay the teacher the amount of 
 severance pay it determines to be due from the proceeds of the 
 levy for this purpose.  

    A teacher who receives severance pay under this subdivision 
 waives all further reinstatement rights under section 125.12, 
 subdivision 6a or 6b.  If the teacher receives severance pay, 
 the teacher shall not receive credit for any years of service in 
 the district paying severance pay prior to the year in which the 
 teacher becomes eligible to receive severance pay. 

    The severance pay is subject to section 465.72.  The 
 district may levy annually according to section 124.912, 
 subdivision 1, for the severance pay.  

    HIST: 1983 c 314 art 8 s 8; 1990 c 562 art 6 s 6; 1991 c 130 s 
 37; 1991 c 265 art 6 s 18; 1992 c 499 art 12 s 29; 1Sp1995 c 3 
 art 16 s 13; 1996 c 305 art 1 s 138; 1996 c 412 art 9 s 19; art 
 13 s 10 

     122.539 Meetings. 

    (a) Notwithstanding any law to the contrary, a joint powers 
 board established under section 121.155 or 124.494, and the 
 board of each of its member districts may hold meetings at a 
 facility operated by the joint powers board. 

    (b) The joint powers board shall establish and maintain a 
 schedule of the time and place of its meetings and shall give 
 notice of regular and special meetings as required under section 
 471.705. 

    HIST: 1990 c 562 art 6 s 7 

   122.54 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.54 MS 1974 Repealed, 1976 c 271 s 98 subd 1 

     122.541 Interdistrict cooperation. 

    Subdivision 1.    District requirements.  The school 
 boards of two or more districts may, after consultation with the 
 department of children, families, and learning, enter into an 
 agreement providing for:  

    (1) discontinuance by all districts except one of at least 
 the 10th, 11th, and 12th grades; and 

    (2) instruction of the pupils in the discontinued grades in 
 one of the cooperating districts.  Each district shall continue 
 to operate a school with at least three grades.  Before entering 
 into a final agreement, the boards shall provide a copy of this 
 agreement to the commissioner of children, families, and 
 learning.  

    Subd. 2.    Aid; transportation.  (a) Each district 
 shall continue to count its resident pupils who are educated in 
 a cooperating district as resident pupils in the calculation of 
 pupil units for all purposes.  The agreement shall provide for 
 tuition payments between or among the districts.  

    (b) Each district shall continue to provide transportation 
 and collect transportation aid for its resident pupils pursuant 
 to sections 123.39, 124.223, and 124.225.  A district may 
 provide some or all transportation to its resident pupils by 
 contracting with a cooperating district.  For purposes of 
 section 124.225, the commissioner may adjust the base cost per 
 eligible pupil transported to reflect changes in costs resulting 
 from the agreement.  

    Subd. 3.    Teacher defined.  As used in this section, 
 the term "teacher" has the meaning given it in section 125.12, 
 subdivision 1. 

    Subd. 4.    Negotiated plan for discontinued teachers.  
 The school board and exclusive bargaining representative of the 
 teachers in each district discontinuing grades may negotiate a 
 plan to assign or employ in a cooperating district or to place 
 on unrequested leave of absence all teachers whose positions are 
 discontinued as a result of the agreement.  The school board and 
 exclusive bargaining representative of the teachers in each 
 district providing instruction to nonresident pupils may 
 negotiate a plan to employ teachers from a cooperating district 
 whose positions are discontinued as a result of the agreement.  
 If plans are negotiated and if the boards determine the plans 
 are compatible, the boards shall include the plans in their 
 agreement.  

    Subd. 5.    Combined seniority list.  If compatible 
 plans are not negotiated before the March 1 preceding any year 
 of the agreement, the cooperating districts shall be governed by 
 this subdivision.  Insofar as possible, teachers who have 
 acquired continuing contract rights and whose positions are 
 discontinued as a result of the agreement shall be employed by a 
 cooperating district or assigned to teach in a cooperating 
 district as exchange teachers pursuant to section 125.13.  If 
 necessary, teachers whose positions are discontinued as a result 
 of the agreement and who have acquired continuing contract 
 rights shall be placed on unrequested leave of absence in fields 
 in which they are licensed in the inverse order in which they 
 were employed by a cooperating district, according to a combined 
 seniority list of teachers in the cooperating districts.  For 
 the purpose of establishing a combined seniority list, each 
 school district must be considered to have started school each 
 year on the same date. 

    Subd. 6.    Notice and hearing.  Prior to entering into 
 an agreement, the school board shall consult with the community 
 at an informational meeting.  The board shall publish notice of 
 the meeting in the official newspaper of the district and may 
 send written notice of the meeting to parents of pupils who 
 would be affected.  

    Subd. 7.    Meeting location.  Notwithstanding any law 
 to the contrary, school boards that have an agreement may hold a 
 valid joint meeting at any location that would be permissible 
 for one of the school boards participating in the meeting.  A 
 school board that has an agreement may hold a meeting in any 
 district that is a party to the agreement.  The school board 
 shall comply with section 471.705 and any other law applicable 
 to a meeting of a school board. 

    HIST: 1979 c 211 s 4; 1980 c 609 art 6 s 14; 1Sp1985 c 12 art 
 7 s 12; 1987 c 384 art 2 s 27; 1987 c 398 art 7 s 19; 1989 c 329 
 art 6 s 18; 1991 c 265 art 9 s 32; 1Sp1995 c 3 art 16 s 13 

  122.542 MS 1982 Repealed, 1983 c 314 art 9 s 13 

  122.55 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.553 MS 1953 Repealed, 1955 c 858 s 13 

  122.56 MS 1949 Repealed, 1953 c 744 s 12 

  122.57 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  122.58 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.59 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.60 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.61 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.62 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.63 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.64 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.65 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.66 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.67 MS 1957 Repealed, Ex1959 c 71 art 8 s 26 

  122.71 MS 1957 Renumbered 123.81 

  122.72 MS 1957 Renumbered 123.82 

  122.73 MS 1957 Renumbered 123.83 

  122.74 MS 1957 Renumbered 123.84 

  122.75 MS 1957 Renumbered 123.85 

  122.76 MS 1957 Renumbered 123.86 

  122.77 MS 1957 Renumbered 123.87 

  122.78 MS 1957 Renumbered 123.88 

  122.79 MS 1957 Renumbered 123.89 

  122.80 MS 1957 Renumbered 123.90 

  122.81 MS 1957 Renumbered 123.91 

  122.82 MS 1957 Renumbered 123.92 

  122.83 MS 1957 Renumbered 123.93 

  122.84 Repealed, 1Sp1985 c 12 art 7 s 33 

    122.85 Subdivision 1.  MS 1984 Repealed, 1Sp1985 c 
 12 art 7 s 33 

    Subd. 2.  MS 1984 Repealed, 1Sp1985 c 12 art 7 s 
 33 

    Subd. 3.  MS 1984 Repealed, 1Sp1985 c 12 art 7 s 
 33 

    Subd. 4.  MS 1984 Repealed, 1Sp1985 c 12 art 7 s 
 33 

    Subd. 5.  MS 1984 Repealed, 1Sp1985 c 12 art 7 s 
 33 

    Subd. 6.  MS 1984 Repealed, 1Sp1985 c 12 art 7 s 
 33 

    Subd. 7.  MS 1984 Repealed, 1980 c 609 art 6 s 48; 
 1Sp1985 c 12 art 7 s 33 

  122.86 Repealed, 1989 c 329 art 9 s 34 

  122.87 Repealed, 1989 c 329 art 9 s 34 

  122.88 Repealed, 1989 c 329 art 9 s 34 

  122.89 Repealed, 1Sp1985 c 12 art 7 s 33 

     122.895 Employees of cooperative districts upon 
  dissolution or withdrawal. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the terms defined in this subdivision have the meanings 
 given them. 

    (a) "Teacher" means a teacher as defined in section 125.12, 
 subdivision 1, who is employed by a district or center listed in 
 subdivision 2, except that it does not include a superintendent. 

    (b) "Cooperative" means any district or center to which 
 this section applies. 

    (c) "Withdrawal" means a school district's removal of its 
 students from a program of instruction, counseling, or 
 evaluation provided by a cooperative in order to provide the 
 same educational services by other means. 

    (d) "Education support position" means a position not 
 requiring a teaching license in which an employee assists a 
 teacher by providing instructional, counseling, or evaluative 
 support services directly to students. 

    (e) "Education support employee" means an employee holding 
 an education support position. 

    Subd. 2.    Applicability.  This section applies to: 

    (1) an education district organized according to sections 
 122.91 to 122.95; 

    (2) a cooperative vocational center organized according to 
 section 123.351; 

    (3) a joint powers district or board organized according to 
 section 471.59 which employs teachers to provide instruction; 

    (4) an intermediate district organized according to chapter 
 136D; 

    (5) a service cooperative which employs teachers to provide 
 instruction; and 

    (6) school districts participating in an agreement for the 
 cooperative provision of special education services to children 
 with disabilities according to section 120.17, subdivision 4. 

    Subd. 2a.    Agreements for cooperative special education. 
  (a) Upon the termination of an agreement according to section 
 120.17, subdivision 4, a teacher employed to provide special 
 education services by a school district participating in the 
 agreement will be afforded rights to employment by other school 
 districts according to subdivisions 3, 4, and 5.  Nonlicensed 
 employees of a participating district employed to provide 
 special education services will, upon the agreement's 
 termination, be afforded rights to employment by other 
 participating districts according to subdivision 8. 

    (b) Upon a school district's withdrawal from the 
 cooperative provision of special education under an agreement 
 according to section 120.17, subdivision 4, a teacher employed 
 to provide special education services by a participating 
 district will be afforded rights to employment by other school 
 districts according to subdivisions 3, 6, and 7.  Nonlicensed 
 employees of a participating district employed to provide 
 special education services will be afforded rights to employment 
 by the withdrawing district according to subdivision 9. 

    Subd. 3.    Notification of teachers.  In any year in 
 which a cooperative dissolves or a member withdraws from a 
 cooperative, the governing board of a cooperative shall provide 
 all teachers employed by the cooperative written notification by 
 March 10 of: 

    (1) the dissolution of the cooperative and the effective 
 date of dissolution; or 

    (2) the withdrawal of a member of the cooperative and the 
 effective date of withdrawal. 

    Subd. 4.    Rights of a teacher with a continuing contract 
 in a member district upon dissolution.  (a) This subdivision 
 applies to a teacher previously employed in a member district 
 who: 

    (1) had a continuing contract with that member district; 

    (2) has been continuously employed immediately after 
 leaving that member district by one or more cooperatives that 
 provided instruction to pupils enrolled in that member district; 
 and 

    (3) is either a probationary teacher or has a continuing 
 contract with the cooperative that is dissolving. 

    (b) A teacher may elect to resume the teacher's continuing 
 contract with the member district by which the teacher was 
 previously employed by filing a written notice of the election 
 with the member school board on or before March 20.  Failure by 
 a teacher to file a written notice by March 20 of the year the 
 teacher receives a notice according to subdivision 3 constitutes 
 a waiver of the teacher's rights under this subdivision. 

    The member district shall make reasonable realignments of 
 positions to accommodate the seniority rights of a teacher 
 electing to resume continuing contract rights in the member 
 district according to this subdivision. 

    Upon returning the teacher shall receive credit for: 

    (1) all years of continuous service under contract with the 
 cooperative and the member district for all purposes relating to 
 seniority, compensation, and employment benefits; and 

    (2) the teacher's current educational attainment on the 
 member district's salary schedule.  

    (c) A teacher who does not elect to return to the member 
 district according to this subdivision may exercise rights under 
 subdivision 5. 

    Subd. 5.    Rights of other teachers.  (a) This 
 subdivision applies to a teacher who: 

    (1) has a continuing contract with the cooperative; and 

    (2) either did not have a continuing contract with any 
 member district or does not return to a member district 
 according to the procedures set forth in subdivision 4, 
 paragraph (b). 

    (b) By May 10 of the school year in which the cooperative 
 provides the notice required by subdivision 3, clause (1), the 
 cooperative shall provide to each teacher described in 
 subdivision 4 and this subdivision a written notice of available 
 teaching positions in any member district to which the 
 cooperative was providing services at the time of dissolution.  
 Available teaching positions are all teaching positions that, 
 during the school year following dissolution: 

    (1) are positions for which the teacher is licensed; and 

    (2) are not assigned to a continuing contract teacher 
 employed by a member school district after any reasonable 
 realignments which may be necessary under the applicable 
 provisions of section 125.12, subdivision 6a or 6b, to 
 accommodate the seniority rights of teachers employed by the 
 member district. 

    (c) On or before June 1 of the school year in which the 
 cooperative provides the notice required by subdivision 3, 
 clause (1), any teacher wishing to do so must file with the 
 school board a written notice of the teacher's intention to 
 exercise the teacher's rights to an available teaching 
 position.  Available teaching positions shall be offered to 
 teachers in order of their seniority within the dissolved 
 cooperative. 

    (d) Paragraph (e) applies to: 

    (1) a district that was a member of a dissolved 
 cooperative; or 

    (2) any other district that, except as a result of open 
 enrollment according to section 120.062, provides essentially 
 the same instruction provided by the dissolved cooperative to 
 pupils enrolled in a former member district. 

    (e) For five years following dissolution of a cooperative, 
 a district to which this paragraph applies may not appoint a new 
 teacher or assign a probationary or provisionally licensed 
 teacher to any position requiring licensure in a field in which 
 the dissolved cooperative provided instruction until the 
 following conditions are met: 

    (1) a district to which this paragraph applies has provided 
 each teacher formerly employed by the dissolved cooperative, who 
 holds the requisite license, written notice of the position; and 

    (2) no teacher holding the requisite license has filed a 
 written request to be appointed to the position with the school 
 board within 30 days of receiving the notice. 

    If no teacher files a request according to clause (2), the 
 district may fill the position as it sees fit.  During any part 
 of the school year in which dissolution occurs and the first 
 school year following dissolution, a teacher may file a request 
 for an appointment according to this paragraph regardless of 
 prior contractual commitments with other member districts.  
 Available teaching positions shall be offered to teachers in 
 order of their seniority on a combined seniority list of the 
 teachers employed by the cooperative and the appointing district.

    (f) A teacher appointed according to this subdivision is 
 not required to serve a probationary period.  The teacher shall 
 receive credit on the appointing district's salary schedule for 
 the teacher's years of continuous service under contract with 
 the cooperative and the member district and the teacher's 
 educational attainment at the time of appointment or shall 
 receive a comparable salary, whichever is less.  The teacher 
 shall receive credit for accumulations of sick leave and rights 
 to severance benefits as if the teacher had been employed by the 
 member district during the teacher's years of employment by the 
 cooperative.  

    Subd. 6.    Rights of a teacher with a continuing contract 
 in a member district upon withdrawal of the district.  (a) 
 This subdivision applies to a teacher previously employed by a 
 member district who: 

    (1) had a continuing contract with the member district 
 which withdraws from a cooperative; 

    (2) has been continuously employed immediately after 
 leaving that member district by one or more cooperatives that 
 provided instruction to pupils enrolled in that member district; 
 and 

    (3) is either a probationary teacher or has a continuing 
 contract with the cooperative from which the member district is 
 withdrawing. 

    (b) A teacher may elect to resume the teacher's continuing 
 contract with the withdrawing district by which the teacher was 
 previously employed by filing a written notice of the election 
 with the withdrawing school board on or before March 20.  
 Failure by a teacher to file written notice by March 20 of the 
 year the teacher receives a notice according to subdivision 3 
 constitutes a waiver of a teacher's rights under this 
 subdivision. 

    The member district shall make reasonable realignments of 
 positions to accommodate the seniority rights of a teacher 
 electing to resume continuing contract rights in the member 
 district according to this subdivision. 

    Upon returning, the teacher shall receive credit for: 

    (1) all years of continuous service under contract with the 
 cooperative and the member district for all purposes relating to 
 seniority, compensation, and employment benefits; and 

    (2) the teacher's current educational attainment on the 
 member district's salary schedule. 

    Subd. 7.    Rights of a teacher placed on unrequested 
 leave upon withdrawal.  (a) This subdivision applies to a 
 teacher who is placed on unrequested leave of absence, according 
 to section 125.12, subdivision 6a or 6b, in the year in which 
 the cooperative provides the notice required by subdivision 3, 
 clause (2), by a cooperative from which a member district is 
 withdrawing. 

    This subdivision applies to a district that, except as a 
 result of open enrollment according to section 120.062, provides 
 essentially the same instruction provided by the cooperative to 
 pupils enrolled in the withdrawing district. 

    (b) A teacher shall be appointed by a district to which 
 this subdivision applies to an available teaching position which:

    (1) is in a field of licensure in which pupils enrolled in 
 the withdrawing district received instruction from the 
 cooperative; and 

    (2) is within the teacher's field of licensure. 

    For the purpose of this paragraph, an available teaching 
 position means any position that is vacant or would otherwise be 
 occupied by a probationary or provisionally licensed teacher. 

    (c) A board may not appoint a new teacher to an available 
 teaching position unless no teacher holding the requisite 
 license on unrequested leave from the cooperative has filed a 
 written request for appointment.  The request shall be filed 
 with the board of the appointing district within 30 days of 
 receiving written notice from the appointing board that it has 
 an available teaching position.  If no teacher holding the 
 requisite license files a request according to this paragraph, 
 the district may fill the position as it sees fit.  Available 
 teaching positions shall be offered to teachers in order of 
 their seniority on a combined seniority list of the teachers 
 employed by the cooperative and the withdrawing member district. 

    (d) A teacher appointed according to this subdivision is 
 not required to serve a probationary period.  The teacher shall 
 receive credit on the appointing district's salary schedule for 
 the teacher's years of continuous service under contract with 
 the cooperative and the member district and the teacher's 
 educational attainment at the time of appointment or shall 
 receive a comparable salary, whichever is less.  The teacher 
 shall receive credit for accumulations of sick leave and rights 
 to severance benefits as if the teacher had been employed by the 
 member district during the teacher's years of employment by the 
 cooperative. 

    Subd. 8.    Nonlicensed employees upon dissolution.  (a) 
 A nonlicensed employee who is terminated by a cooperative that 
 dissolves shall be appointed by a district that is a member of 
 the dissolved cooperative to a position that is created within 
 36 months of the dissolution of the cooperative and is created 
 as a result of the dissolution of the cooperative.  A position 
 shall be offered to a nonlicensed employee, who fulfills the 
 qualifications for that position, in order of the employee's 
 seniority within the dissolved cooperative. 

    (b) When an education support employee is terminated by a 
 cooperative that dissolves, a district that is a member of the 
 dissolved cooperative shall appoint the employee to an education 
 support position if the position is created within 36 months of 
 the dissolution of the cooperative as a result of the 
 dissolution.  An education support position shall be offered to 
 an education support employee, who fulfills the qualifications 
 for that position, in order of the employee's seniority within 
 the dissolved cooperative. 

    (c) An employee appointed according to this subdivision 
 shall receive credit for the employee's: 

    (1) continuous years of service with the cooperative on the 
 appointing district's compensation schedule and seniority list; 
 and 

    (2) unused sick leave accumulated while employed by the 
 cooperative. 

    (d) Notwithstanding section 179A.12 or Minnesota Rules, 
 part 5510.0510, subparts 1 to 4, a representation petition 
 seeking the exclusive representation of a unit of education 
 support employees employed by a district formerly a member of a 
 dissolved cooperative may be considered by the commissioner of 
 the bureau of mediation services at any time within 11 months of 
 the dissolution of the cooperative. 

    Subd. 9.    Nonlicensed employees upon withdrawal.  (a) 
 A nonlicensed employee of a cooperative whose active employment 
 is discontinued or reduced as a result of the withdrawal of a 
 member district from the cooperative shall be appointed by the 
 withdrawing member district to a position that is created within 
 36 months of the withdrawal and is created as a result of the 
 withdrawal of the member district.  A position shall be offered 
 to a nonlicensed employee, who fulfills the qualifications for 
 that position, in order of the employee's seniority within the 
 cooperative from which a member district withdraws. 

    (b) When an education support employee of a cooperative has 
 active employment discontinued or reduced as a result of the 
 withdrawal of a member district from the cooperative, the 
 withdrawing member district shall appoint the employee to an 
 education support position if the position is created within 36 
 months of the withdrawal as a result of the withdrawal of the 
 member district.  An education support position shall be offered 
 to an education support employee, who meets the qualifications 
 for that position, in order of the employee's seniority within 
 the cooperative from which a member district withdraws. 

    (c) An employee appointed according to this subdivision 
 shall receive credit for the employee's: 

    (1) continuous years of service with the cooperative on the 
 appointing district's compensation schedule and seniority list; 
 and 

    (2) unused sick leave accumulated while employed by the 
 cooperative. 

    (d) Notwithstanding section 179A.12 or Minnesota Rules, 
 part 5510.0510, subparts 1 to 4, a representation petition 
 seeking the exclusive representation of a unit of education 
 support employees employed by a member district which has 
 withdrawn from a cooperative may be considered by the 
 commissioner of the bureau of mediation services at any time 
 within 11 months of the district's withdrawal from the 
 cooperative. 

    Subd. 10.    Cooperatives that merge.  Notwithstanding 
 subdivisions 1 to 9, the following paragraphs apply to 
 cooperatives that merge. 

    (a) If a cooperative enters into an agreement to merge with 
 another cooperative, the boards of the cooperatives and the 
 exclusive representatives of the teachers in the cooperatives 
 and the teachers in each member district may negotiate a plan to 
 assign or employ in a member district or to place on unrequested 
 leave of absence all teachers whose positions are discontinued 
 as a result of the agreement.  If plans are negotiated and if 
 the boards determine the plans are compatible, the boards shall 
 include the plans in their agreement. 

    (b) If compatible plans are not negotiated under paragraph 
 (a) by the March 1 preceding the effective date of the merger of 
 the cooperatives, subdivisions 2 to 9 apply to teachers and 
 nonlicensed employees whose positions are terminated as a result 
 of an agreement to merge cooperatives. 

    HIST: 1991 c 265 art 9 s 33; 1992 c 363 art 2 s 6; 1993 c 224 
 art 6 s 7; art 9 s 20,21; 1Sp1995 c 3 art 6 s 3-5; 1996 c 412 
 art 13 s 11 

  122.90 MS 1982 Repealed, 1983 c 314 art 7 s 52 

     122.91 Education district establishment. 

    Subdivision 1.    Purpose.  The purpose of an education 
 district is to increase educational opportunities for learners 
 by increasing cooperation and coordination among school 
 districts, other governmental units, and post-secondary 
 institutions, and to replace other existing cooperative 
 structures. 

    Subd. 2.    Agreement.  School boards meeting the 
 requirements of subdivision 3 may enter into a written agreement 
 to establish an education district.  Once established, cities, 
 counties, and other governmental units as defined in section 
 471.59, may become members of the education district.  The 
 agreement and subsequent amendments must be adopted by majority 
 vote of the full membership of each board.  

    Subd. 2a.    Agreement; special provisions.  The 
 education district agreement may contain a special provision 
 adopted by the vote of a majority of the full membership of each 
 of the boards of the member school districts to allow a 
 post-secondary institution or cities, counties, and other 
 governmental units to become a member of the education district. 

    Subd. 3.    Requirements for formation.  An education 
 district must have one of the following at the time of formation:

    (1) at least five districts; 

    (2) at least four districts with a total of at least 5,000 
 pupils in average daily membership; or 

    (3) at least four districts with a total of at least 2,000 
 square miles.  

    Members of an education district must be contiguous.  
 Districts with a cooperation agreement according to section 
 122.541 may belong to an education district only as a unit.  

    A noncontiguous district may be a member of an education 
 district if the state board of education determines that: 

    (1) a district between the education district and the 
 noncontiguous district has considered and is unwilling to become 
 a member; or 

    (2) a noncontiguous configuration of member districts has 
 sufficient technological or other resources to offer effective 
 levels of programs and services. 

    Subd. 3a.    Meeting with representatives.  Before 
 entering into an agreement, the school board of each member 
 district must meet and confer with the exclusive representatives 
 of the teachers of each school district proposing to enter the 
 education district. 

    Subd. 4.    Notice and hearing.  Before entering into an 
 agreement, the school board of each member district shall 
 publish at least once in a newspaper of general circulation in 
 the district a summary of the proposed agreement and its effect 
 upon the district.  The board shall conduct a public hearing on 
 the proposed agreement not more than ten days after the notice 
 and at least 30 days before entering into an agreement.  

    Subd. 5. Repealed, 1994 c 647 art 6 s 42 

    Subd. 6.    Service cooperatives.  If requested, service 
 cooperatives shall provide assistance to districts in 
 establishing education districts.  The assistance may include 
 determination of appropriate boundaries of the education 
 district and development of the agreement.  The service 
 cooperatives may provide any other services requested by the 
 education district. 

    Subd. 7. Repealed, 1991 c 265 art 6 s 67; 1992 c 499 art 
 6 s 31; 1994 c 647 art 6 s 42 

    HIST: 1987 c 398 art 8 s 2; 1988 c 718 art 6 s 3; 1989 c 329 
 art 6 s 19-23; 1990 c 562 art 6 s 8,9; 1991 c 265 art 6 s 19; 
 1994 c 647 art 6 s 42; art 13 s 2; 1Sp1995 c 3 art 9 s 13-15; 
 1996 c 305 art 1 s 138 

     122.92 Education district board. 

    Subdivision 1.    School district representation.  The 
 education district board shall be composed of at least one 
 representative appointed by the school board or governing board 
 of each member.  Each representative must be a member of the 
 appointing school or governing board.  Each representative shall 
 serve at the pleasure of the appointing board and may be 
 recalled by a majority vote of the appointing board.  Each 
 representative shall serve for the term that is specified in the 
 agreement.  The board shall select its officers from among its 
 members and shall determine the terms of the officers.  The 
 board shall adopt bylaws for the conduct of its business.  The 
 board may conduct public meetings via interactive television if 
 the board complies with section 471.705 in each location where 
 board members are present. 

    Subd. 2.    Post-secondary representation.  The 
 education district board may appoint, with the approval of the 
 member post-secondary institution, a representative from one or 
 more member post-secondary institutions as a member of the 
 education district board.  Each post-secondary representative 
 shall serve at the pleasure of the education district board and 
 may be recalled by a majority vote of the education district 
 board.  The education district agreement may specify issues on 
 which a post-secondary representative may vote.  

    HIST: 1987 c 398 art 8 s 3; 1989 c 329 art 6 s 24; 1991 c 44 s 
 1; 1994 c 647 art 6 s 42; 1Sp1995 c 3 art 9 s 16 

     122.93 Powers and duties of the board. 

    Subdivision 1.    Coordination.  An education district 
 board shall coordinate the programs and services of the 
 education district according to the terms of the written 
 agreement.  The board shall implement the agreement for 
 delivering educational services defined in section 123.582, 
 subdivisions 7 and 8, needed in the education district. 

    Subd. 2.    Personnel.  The board may employ personnel 
 as necessary to provide and support the programs and services of 
 the education district.  Education district staff shall 
 participate in retirement programs.  Notwithstanding section 
 123.34, subdivision 9, a member district of an education 
 district may contract with the education district to obtain the 
 services of a superintendent.  The person to provide the 
 services need not be employed by the education district or a 
 member district at the time the contract is entered into. 

    Subd. 3.    Contracts.  The board may enter into 
 contracts with school districts and other public and private 
 agencies to provide services needed in the education district. 

    Subd. 4.    General law.  The board shall be governed, 
 unless specifically provided otherwise, by laws applicable to 
 independent school districts. 

    Subd. 5.    Advisory council.  An advisory council, 
 consisting of representatives from the program areas covered by 
 the agreement, shall be appointed by the education district 
 board. 

    Subd. 6.    Report to members.  The board shall submit 
 at least an annual report to the member districts and an annual 
 report to the state board of education about the activities of 
 the education district.  

    Subd. 7. Repealed, 1994 c 647 art 6 s 42 

    Subd. 8.    Discontinuing grades.  The board of a school 
 district that is a member of an education district may 
 discontinue any of kindergarten through grade 12 or part of 
 those grades and provide instruction for those grades or parts 
 of grades within the education district. 

    HIST: 1987 c 398 art 8 s 4; 1989 c 329 art 6 s 25-27; 1994 c 
 647 art 6 s 42; 1Sp1995 c 3 art 9 s 17 

  122.937 Repealed, 1994 c 647 art 6 s 42 

     122.94 Education district agreement. 

    Subdivision 1.    Establishment.  An education district 
 board shall adopt a comprehensive agreement for continuous 
 learning.  The agreement must address methods to improve the 
 educational opportunities available in the education district.  
 The education district board shall review the agreement annually 
 and propose necessary amendments to the member districts. 

    Subd. 1a. Repealed, 1992 c 499 art 6 s 39 

    Subd. 2. Repealed, 1994 c 647 art 6 s 42 

    Subd. 3. Repealed, 1994 c 647 art 6 s 42 

    Subd. 4.    Extended year.  The agreement may provide 
 opportunities for pupils to receive instruction throughout the 
 entire year and for teachers to coordinate educational 
 opportunities and provide instruction throughout the entire 
 year.  Pupils may receive instruction for more than or less than 
 the daily number of hours required by the rules of the state 
 board of education.  However, the pupil must receive instruction 
 each year for at least the total number of instructional hours 
 required by statutes and rules.  A teacher who is employed for 
 the extended year may develop, in consultation with pupils and 
 parents, individual educational programs for not more than 125 
 pupils.  

    Subd. 5.    Attendance in other districts.  (a) The 
 agreement may provide for a pupil who is a resident of a member 
 district to enroll in programs or courses offered by another 
 member district or transfer to another member district.  A pupil 
 and parent shall consult with a career teacher, counselor, or 
 principal before transferring to another district.  The 
 agreement shall specify procedures for reimbursement among the 
 member districts.  The district of residence shall count all 
 resident pupils who enroll in programs or courses or transfer to 
 another district as its pupils for the purpose of state aid and 
 levy limitations.  The agreement shall determine whether 
 transportation is available for pupils enrolled in programs or 
 courses or transferring to another district. 

    (b) Paragraph (a) does not limit any rights or duties under 
 section 120.062. 

    Subd. 6. Repealed, 1994 c 647 art 6 s 42 

    HIST: 1987 c 398 art 8 s 5; 1989 c 329 art 6 s 28,29; 1990 c 
 562 art 6 s 11,12; 1991 c 265 art 3 s 38; art 6 s 20,21; 1994 c 
 647 art 6 s 42; 1Sp1995 c 3 art 9 s 18 

    122.945 Subdivision 1. MS 1992 Repealed, 1994 c 
 647 art 6 s 42 

    Subd. 2. MS 1992 Repealed, 1994 c 647 art 6 s 42 

    Subd. 3. MS 1992 Repealed, 1994 c 647 art 6 s 42 

    Subd. 4. MS 1990 Repealed, 1991 c 265 art 6 s 67; 
 1994 c 647 art 6 s 42 

    Subd. 5. MS 1992 Repealed, 1994 c 647 art 6 s 42 

     122.95 Teaching positions. 

    Subdivision 1.    Definition.  For the purposes of this 
 section, "teacher" has the meaning given it in section 125.12, 
 subdivision 1, except that it does not include a superintendent. 

    Subd. 1a.    Filling positions; negotiated agreements.  
 The school boards in all member districts and exclusive 
 bargaining representatives of the teachers in all member 
 districts may negotiate a plan for filling positions resulting 
 from implementation of the education district agreement.  If the 
 plan is negotiated among the member school districts and the 
 exclusive bargaining representative of each member school 
 district and unanimously agreed upon, in writing, the education 
 district shall include the plan in the education district 
 agreement.  If a plan is not negotiated, the education district 
 is governed by subdivision 2. 

    Subd. 2.    Filling positions.  (a) When an education 
 district board or a member board is filling a position resulting 
 from implementation of the agreement, the board may offer the 
 position to a teacher currently employed by a member district 
 according to the exchange teacher provisions of section 125.13. 

    (b) If the position is not filled by a currently employed 
 teacher, the board shall offer the position to an available 
 teacher in the order of seniority in fields of licensure on a 
 combined seniority list of all available teachers in the member 
 districts.  For the purpose of establishing a combined seniority 
 list, each school district must be considered to have started 
 school each year on the same date.  An available teacher is a 
 teacher in a member district who:  

    (1) was placed on unrequested leave of absence by a member 
 district, according to section 125.12, subdivision 6a or 6b, or 
 was terminated according to section 125.17, subdivision 11, not 
 more than one year before the initial formation of an education 
 district as a result of an intention to enter into an education 
 district agreement; 

    (2) was placed on unrequested leave of absence by a member 
 district, according to section 125.12, subdivision 6a or 6b, or 
 was terminated according to section 125.17, subdivision 11, as a 
 result of implementing the education district agreement, after 
 the formation of the education district; or 

    (3) is placed on unrequested leave of absence by a member 
 district, according to section 125.12, subdivision 6a or 6b, or 
 is terminated according to section 125.17, subdivision 11, as a 
 result of implementing the education district, in the same year 
 the position is filled. 

    (c) If no currently employed teacher or available teacher 
 accepts the position, the board may fill the position with any 
 other teacher.  

    (d) Any teacher who has been placed on unrequested leave of 
 absence or who has been terminated has a right to a position 
 only as long as the teacher has a right to reinstatement in a 
 member district under section 125.12, subdivision 6a or 6b, or 
 125.17, subdivision 11.  

    Subd. 3.    Probation and termination.  Notwithstanding 
 section 125.12, subdivision 3, a teacher who has acquired 
 continuing contract rights in a member district and who 
 transfers employment from a member district to the education 
 district or to another member district does not have to serve a 
 probationary period.  A teacher who is terminated or discharged 
 by a member district according to section 125.12, subdivision 6 
 or 8, or 125.17, subdivision 4, has no right to any position 
 under this section.  

    Subd. 4.    Determination of reason for leave.  When a 
 school board that intends to enter into an education district 
 agreement, and at the time a school board that has entered into 
 an education district agreement places a teacher on unrequested 
 leave of absence, according to section 125.12, subdivision 6a or 
 6b, or terminates a teacher's services under section 125.17, 
 subdivision 11, the board shall make a determination whether the 
 placement or termination is a result of implementing the 
 education district agreement.  That determination shall be 
 included in the notice of proposed placement or termination, may 
 be reviewed at a hearing upon request of the teacher, and shall 
 be included in the notice of final action of the board.  If the 
 determination is not disputed by the teacher before June 1 or 
 the final date required for action by the board, the teacher 
 shall be deemed to acquiesce in the board's determination.  

    HIST: 1987 c 398 art 8 s 6; 1989 c 329 art 6 s 31,32; 1994 c 
 647 art 6 s 42 

  122.96 Repealed, 1989 c 329 art 6 s 55 

     122.98 Cooperative unit insurance pools. 

    Any cooperative unit defined in section 123.35, subdivision 
 19b, that directly manages a health insurance pool or provides 
 health insurance coverage through an insurance pool as a service 
 to members must create a labor-management committee 
 representative of the groups covered by the pool to advise the 
 governmental unit on management matters of the coverage. 

    HIST: 1994 c 647 art 6 s 10