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CHAPTER 123A. SCHOOL DISTRICTS; FORMS FOR ORGANIZING

Table of Sections
SectionHeadnote
123A.001APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
123A.01DEFINITIONS.

AREA LEARNING CENTERS

123A.05AREA LEARNING CENTER ORGANIZATION.
123A.06CENTER PROGRAMS AND SERVICES.
123A.07RESOURCE CENTER FOR OTHER PROGRAMS.
123A.08CENTER FUNDING.
123A.09DESIGNATING AND APPROVING A CENTER.

ADMINISTRATIVE SERVICE AGREEMENTS

123A.12AGREEMENT REGARDING ADMINISTRATIVE SERVICES.

EDUCATION DISTRICTS

123A.15ESTABLISHING EDUCATION DISTRICTS.
123A.16EDUCATION DISTRICT BOARD.
123A.17POWERS AND DUTIES OF AN EDUCATION DISTRICT BOARD.
123A.18EDUCATION DISTRICT AGREEMENT.
123A.19TEACHING POSITIONS.

SERVICE COOPERATIVES; COOPERATIVE

CENTERS; INFORMATION CENTERS; COOPERATIVE UNITS

123A.21SERVICE COOPERATIVES.
123A.22COOPERATIVE CENTERS FOR VOCATIONAL EDUCATION.
123A.23REGIONAL MANAGEMENT INFORMATION CENTERS.
123A.24WITHDRAWING FROM COOPERATIVE UNIT; APPEALING DENIAL OF MEMBERSHIP.
123A.245COOPERATIVE UNITS; ELIGIBILITY FOR GRANTS.
123A.25COOPERATIVE UNIT; INSURANCE POOLS.
123A.26COOPERATIVE UNITS; PROHIBITED AID AND LEVIES.
123A.27RESERVED REVENUE FOR DISTRICT COOPERATION.

COOPERATION AND COMBINATION

123A.30AGREEMENTS FOR SECONDARY EDUCATION.
123A.32INTERDISTRICT COOPERATION.
123A.33EMPLOYEES OF COOPERATIVE DISTRICTS UPON DISSOLUTION OR WITHDRAWAL.
123A.35COOPERATION AND COMBINATION.
123A.36COOPERATION AND COMBINATION PLAN.
123A.37COMMISSIONER AND VOTER APPROVAL.
123A.38EFFECTIVE DATE OF COMBINATION.
123A.39EMPLOYEES OF COOPERATING AND COMBINING DISTRICTS.
123A.40COUNTY AUDITOR PLAT.
123A.41LEVIES FOR DISTRICTS AT THE TIME OF COMBINATION.
123A.43REPORTS TO DEPARTMENT OF EDUCATION.
123A.44123A.44 CITATION.
123A.441123A.441 POLICY AND PURPOSE.
123A.442APPROVAL AUTHORITY; APPLICATION FORMS.
123A.443GRANT APPLICATION PROCESS.
123A.444LEVY FOR SEVERANCE PAY.
123A.445TRANSPORTATION.
123A.446STATE BOND AUTHORIZATION.

REALIGNING DISTRICTS

123A.45DETACHMENT AND ANNEXATION OF LAND.
123A.455REALIGNING SPLIT RESIDENTIAL PARCELS.
123A.46DISSOLUTION AND ATTACHMENT.
123A.48CONSOLIDATION.
123A.485CONSOLIDATION TRANSITION REVENUE.
123A.488CONSOLIDATION; INSTRUCTION BY NONRESIDENTIAL DISTRICT.
123A.49APPEALS.
123A.50PLATS.

COMMON, INDEPENDENT, AND

SPECIAL DISTRICTS

123A.55CLASSES, NUMBER.
123A.56ASSIGNMENT OF IDENTIFICATION NUMBERS.
123A.58COMMON DISTRICT TO INDEPENDENT DISTRICT.
123A.60REMAINING DISTRICTS, ACTION OF COUNTY BOARD; ELECTION.
123A.61PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.
123A.62BORDER DISTRICTS; CONTINUED OPERATION; FRANCONIA.
123A.64DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.
123A.65PHASE OUT OF DISSOLVED DISTRICT.
123A.66PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.
123A.67ALLOCATION OF ASSETS AND LIABILITIES; LEVY.
123A.68OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.
123A.69SPECIAL SCHOOL DISTRICTS, APPLICATION; MINNEAPOLIS AND SOUTH ST. PAUL.
123A.70PRIVATE SCHOOLS; PRINSBURG.
123A.71APPEAL.
123A.72SEVERABILITY.
123A.73LEVY LIMITATIONS OF REORGANIZED DISTRICTS.
123A.74OBLIGATIONS UPON DISTRICT REORGANIZATION.
123A.75EMPLOYEES OF REORGANIZED DISTRICTS.
123A.76EXPENSES OF TRANSITION.
123A.77SURPLUS COUNTY SCHOOL TAX FUNDS; DISTRIBUTION.
123A.78JOINT POWERS AGREEMENTS FOR FACILITIES.
123A.79MEETINGS OF JOINT POWERS BOARD.
123A.001 APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
State agencies shall use the terminology changes specified in Laws 2005, chapter 56, section
1, when printed material and signage are replaced and new printed material and signage are
obtained. State agencies do not have to replace existing printed material and signage to comply
with Laws 2005, chapter 56, sections 1 and 2. Language changes made according to Laws 2005,
chapter 56, sections 1 and 2, shall not expand or exclude eligibility to services.
History: 2005 c 56 s 3
123A.01 DEFINITIONS.
    Subdivision 1. Definitions. For purposes of this chapter, the words defined in section
120A.05, have the same meaning.
    Subd. 2. Teacher. For purposes of this chapter, "teacher" means a teacher as defined in
section 122A.40, subdivision 1.
History: Ex1959 c 71 art 3 s 1; 1998 c 397 art 5 s 2; art 11 s 3

AREA LEARNING CENTERS

123A.05 AREA LEARNING CENTER ORGANIZATION.
    Subdivision 1. Governance. A district may establish an area learning center either by itself
or in cooperation with other districts, a service cooperative, an intermediate school district,
a local education and employment transitions partnership, public and private secondary and
postsecondary institutions, public agencies, businesses, and foundations. Except for a district
located in a city of the first class, a center must serve the geographic area of at least two districts.
    Subd. 2. Reserve revenue. Each district that is a member of an area learning center must
reserve revenue in an amount equal to the sum of (1) at least 90 percent of the district average
general education revenue per pupil unit minus an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times .0485, calculated without basic
skills revenue and transportation sparsity revenue, times the number of pupil units attending an
area learning center program under this section, plus (2) the amount of basic skills revenue
generated by pupils attending the area learning center. The amount of reserved revenue under this
subdivision may only be spent on program costs associated with the area learning center.
    Subd. 3. Access to services. A center shall have access to the district's regular education
programs, special education programs, technology facilities, and staff. It may contract with
individuals or postsecondary institutions. It shall seek the involvement of community education
programs, postsecondary institutions, interagency collaboratives, culturally based organizations,
mutual assistance associations, and other community resources, businesses, and other federal,
state, and local public agencies.
    Subd. 4. Nonresident pupils. A pupil who does not reside in the district may attend a center
without consent of the school board of the district of residence.
History: 1987 c 398 art 8 s 34; 1Sp1995 c 3 art 4 s 20; 1996 c 305 art 1 s 138; 1996 c 412
art 4 s 12; 1Sp1997 c 4 art 2 s 32; 1998 c 397 art 5 s 100,101,104; art 11 s 3; 1998 c 398 art 2 s
33; 1999 c 241 art 2 s 4,5; 1Sp2005 c 5 art 1 s 2
123A.06 CENTER PROGRAMS AND SERVICES.
    Subdivision 1. Program focus. (a) The programs and services of a center must focus
on academic and learning skills, applied learning opportunities, trade and vocational skills,
work-based learning opportunities, work experience, youth service to the community, transition
services, and English language and literacy programs for children whose primary language is a
language other than English. Applied learning, work-based learning, and service learning may
best be developed in collaboration with a local education and transitions partnership, culturally
based organizations, mutual assistance associations, or other community resources. In addition
to offering programs, the center shall coordinate the use of other available educational services,
special education services, social services, health services, and postsecondary institutions in
the community and services area.
(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school district may
provide an alternative education program for a student who is within the compulsory attendance
age under section 120A.20, and who is involved in severe or repeated disciplinary action.
    Subd. 2. People to be served. A center shall provide programs for secondary pupils and
adults. A center may also provide programs and services for elementary and secondary pupils
who are not attending the center to assist them in being successful in school. A center shall use
research-based best practices for serving limited English proficient students and their parents. An
individual education plan team may identify a center as an appropriate placement to the extent a
center can provide the student with the appropriate special education services described in the
student's plan. Pupils eligible to be served are those who qualify under the graduation incentives
program in section 124D.68, subdivision 2, those enrolled under section 124D.02, subdivision
2, or those pupils who are eligible to receive special education services under sections 125A.03
to 125A.24, and 125A.65.
    Subd. 3. Hours of instruction exemption. Notwithstanding any law to the contrary, the
center programs must be available throughout the entire year. A center may petition the state
board under Minnesota Rules, part 3500.1000, for exemption from other rules.
    Subd. 4. Granting a diploma. Upon successful completion of the center program, a pupil is
entitled to receive a high school diploma. The pupil may elect to receive a diploma from either the
district of residence or the district in which the center is located.
History: 1987 c 398 art 8 s 35; 1988 c 718 art 6 s 15; 1993 c 146 art 5 s 16; 1Sp1995 c 3 art
4 s 21; 1Sp1997 c 4 art 3 s 17; art 6 s 14; 1998 c 397 art 5 s 104; art 11 s 3; 1998 c 398 art 2 s
34,35; 1998 c 398 art 5 s 55; 1999 c 241 art 2 s 6,7; 1Sp2003 c 9 art 1 s 1; 2006 c 263 art 1 s 2
123A.07 RESOURCE CENTER FOR OTHER PROGRAMS.
An area learning center must serve as a resource for other districts, educational, community,
and business organizations. The center may charge a fee for these services. The following services
shall be provided for a region or the state:
(1) information and research for alternative programs;
(2) regional or state workshops on awareness, identification, programs, and support for
these pupils;
(3) recommendations for staff qualifications to ensure the most qualified staff can be selected
for the programs; and
(4) recommendations for successful learning programs for special education students placed
in an alternative setting.
History: 1987 c 398 art 8 s 36; 1998 c 397 art 5 s 104; 1998 c 398 art 2 s 36
123A.08 CENTER FUNDING.
    Subdivision 1. Outside sources for resources and services. A center may accept:
(1) resources and services from postsecondary institutions serving center pupils;
(2) resources from Job Training Partnership Act programs, including funding for jobs skills
training for various groups and the percentage reserved for education;
(3) resources from the Department of Human Services and county welfare funding;
(4) resources from a local education and employment transitions partnership; or
(5) private resources, foundation grants, gifts, corporate contributions, and other grants.
    Subd. 2. General education aid. Payment of general education aid for nonresident pupils
enrolled in the center must be made according to section 127A.47, subdivision 7.
    Subd. 3. Special education revenue. Payment of special education revenue for nonresident
pupils enrolled in the center must be made according to section 125A.15.
History: 1987 c 398 art 8 s 37; 1988 c 486 s 78; 1Sp1995 c 3 art 4 s 22; 1998 c 397 art 5 s
104; art 11 s 3; 1998 c 398 art 2 s 37
123A.09 DESIGNATING AND APPROVING A CENTER.
The commissioner shall establish a process for state designation and approval of area
learning centers that meet the provisions of sections 123A.05 to 123A.08. Any process for
designating and approving an area learning center must emphasize the importance of having the
area learning center serve students who have dropped out of school, are homeless, are eligible to
receive free or reduced priced lunch, have been suspended or expelled, have been declared truant
or are pregnant or parents.
History: 1988 c 718 art 7 s 52; 1991 c 130 s 25; 1994 c 647 art 4 s 27; 1Sp1995 c 3 art 16 s
13; 1998 c 397 art 5 s 102,104; art 11 s 3; 1998 c 398 art 5 s 55

ADMINISTRATIVE SERVICE AGREEMENTS

123A.12 AGREEMENT REGARDING ADMINISTRATIVE SERVICES.
    Subdivision 1. Agreement. (a) Two or more school districts may enter into an agreement
pursuant to section 471.59 to increase efficiency in the delivery of administrative services and to
reduce costs by the provision of an administrative service by a district or an entity created by
or specified in the agreement and the purchase of that service by one or more other districts
that are a party to that agreement.
(b) Administrative services include, but are not limited to:
(1) a superintendent, deputy superintendent, or assistant superintendent;
(2) a principal, assistant principal, or vice principal; or
(3) a director, manager, coordinator, supervisor, dean, or other administrative position
regardless of title.
(c) A person providing administrative services to another district pursuant to the agreement
shall remain an employee of the employing district or the entity created by or specified in the
agreement for all purposes.
    Subd. 2. Levy. If an administrative position is discontinued in a district as a result of the
purchase of administrative services under the agreement in subdivision 1, the district may
levy over a period of up to three years for costs approved by the commissioner for retirement
incentives or severance pay or other costs related to the discontinuance of that position.
History: 1Sp2005 c 5 art 2 s 49

EDUCATION DISTRICTS

123A.15 ESTABLISHING EDUCATION DISTRICTS.
    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 postsecondary institutions, and to replace other existing cooperative
structures.
    Subd. 2. Agreement to establish an education district; special provision. (a) 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.
(b) 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 districts to allow a
postsecondary institution or cities, counties, and other governmental units to become a member of
the education district.
    Subd. 3. Requirements for formation. (a) 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 123A.32 may belong to an education district only as a unit.
(b) A noncontiguous district may be a member of an education district if the commissioner
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. 4. Meeting with teacher representatives. Before entering into an agreement, the
board of each member district must meet and confer with the exclusive representatives of the
teachers of each district proposing to enter the education district.
    Subd. 5. Notice and public hearing on proposed agreement. Before entering into an
agreement, the board of each member district must publish a summary of the proposed agreement
and its effect upon the district at least once in a newspaper of general circulation in the district.
The board must 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. 6. Service cooperatives to assist in establishing education districts. If requested,
service cooperatives must 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.
History: 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; 1998 c 397 art 5 s 77-81,104; art 11 s 3; 1998 c 398 art 5 s 55; 2003 c 130 s 12
123A.16 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 chapter 13D in
each location where board members are present.
    Subd. 2. Postsecondary representation. The education district board may appoint, with the
approval of the member postsecondary institution, a representative from one or more member
postsecondary institutions as a member of the education district board. Each postsecondary
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 postsecondary representative may vote.
History: 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; 1998 c 397 art 5 s 104
123A.17 POWERS AND DUTIES OF AN EDUCATION DISTRICT 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 123A.21,
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 123B.143, subdivision 1, 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 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 commissioner of education about the activities of
the education district.
    Subd. 7. Discontinuing grades. The board of a 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.
History: 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; 1998 c 397 art 5 s 82,83,104; art 11 s 3; 1998 c 398 art 5 s 55; 2003 c 130 s 12
123A.18 EDUCATION DISTRICT AGREEMENT.
    Subdivision 1. Adoption; content; review. 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. 2. Extended year instruction. 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. 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. 3. 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 124D.03.
History: 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; 1998 c 397 art 5 s
104; art 11 s 3; 1998 c 398 art 5 s 55; 1Sp2003 c 9 art 1 s 2
123A.19 TEACHING POSITIONS.
    Subdivision 1. Teacher defined. For the purposes of this section, "teacher" does not include
a superintendent.
    Subd. 2. Negotiated plan for filling positions. The 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 districts and the exclusive bargaining representative
of each member district and unanimously agreed upon, in writing, the education district must
include the plan in the education district agreement. If a plan is not negotiated, the education
district is governed by subdivision 3.
    Subd. 3. Filling positions without a negotiated plan. (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 122A.54.
(b) If the position is not filled by a currently employed teacher, the board must 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 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
122A.40, subdivision 10 or 11, or was terminated according to section 122A.41, subdivision 14,
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
122A.40, subdivision 10 or 11, or was terminated according to section 122A.41, subdivision 14,
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
122A.40, subdivision 10 or 11, or is terminated according to section 122A.41, subdivision 14, 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 122A.40, subdivision 10 or 11, or 122A.41, subdivision 14.
    Subd. 4. Probation and termination. Notwithstanding section 122A.40, subdivision 5,
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 122A.40, subdivision 9 or 13, or 122A.41, subdivision 6, has no right
to any position under this section.
    Subd. 5. Determining whether unrequested leave or termination results from
implementing agreement. When a school board that intends to enter into an education district
agreement, and at the time a board that has entered into an education district agreement places a
teacher on unrequested leave of absence, according to section 122A.40, subdivision 10 or 11, or
terminates a teacher's services under section 122A.41, subdivision 14, the board must make a
determination whether the placement or termination is a result of implementing the education
district agreement. That determination must be included in the notice of proposed placement or
termination, may be reviewed at a hearing upon request of the teacher, and must 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.
History: 1987 c 398 art 8 s 6; 1989 c 329 art 6 s 31,32; 1994 c 647 art 6 s 42; 1998 c 397
art 5 s 84-87,104; art 11 s 3

SERVICE COOPERATIVES; COOPERATIVE

CENTERS; INFORMATION CENTERS; COOPERATIVE UNITS

123A.21 SERVICE COOPERATIVES.
    Subdivision 1. Establishment of service cooperatives. (a) Ten service cooperatives,
hereafter designated as SCs, are established. Geographical boundaries for each SC shall coincide
with those identified in governor's executive orders 8, dated September 1, 1971, and 59, dated
May 29, 1973, issued pursuant to the Regional Development Act of 1969, Minnesota Statutes,
sections 462.381 to 462.397, with the following exceptions:
(1) development regions one and two shall be combined to form a single SC;
(2) development regions six east and six west shall be combined to form a single SC; and
(3) development regions seven east and seven west shall be combined to form a single SC.
(b) The SC shall cooperate with the regional development commission for the region with
which its boundaries coincide but shall not be responsible to nor governed by that regional
development commission.
(c) Two or more identified SCs may, upon approval by a majority of the members in each
affected SC, be combined and administered as a single SC.
    Subd. 2. Purpose of SC. The primary purposes of designation as a SC shall be to perform
planning on a regional basis and to assist in meeting specific needs of clients in participating
governmental units which could be better provided by a SC than by the members themselves.
The SC must provide those programs and services which are determined, pursuant to subdivision
7, to be priority needs of the particular region and must assist in meeting special needs which
arise from fundamental constraints upon individual members.
    Subd. 3. Membership and participation. Full membership in a SC shall be limited to
public school districts, cities, counties, and other governmental units as defined in section 471.59,
but nonvoting memberships shall be available to nonpublic school administrative units and other
partnership agencies or organizations within the SC. A school district, city, county, or other
governmental unit or nonprofit organization may belong to one or more SCs. Participation in
programs and services provided by the SC shall be discretionary. No school district, city, county,
or other governmental unit shall be compelled to participate in these services under authority of
this section. Nonpublic school students and personnel are encouraged to participate in programs
and services to the extent allowed by law.
    Subd. 4. Governing board. (a) The care, management, and control of a SC shall be vested in
a board of directors composed of not less than six nor more than 15 members. A majority of the
members of the SC board of directors shall be current members of school boards of participating
public school districts. Election of the school board members to the SC board of directors shall be
by vote of all current school board members of participating public school districts with each
school board member having one vote. The remaining board members may be representatives
at large appointed by the board members or elected as representatives by other participating
agencies, such as cities, counties, or other governmental units.
(b) The election timeline shall be compatible with those for school board members and shall
be addressed within the bylaws of each SC.
(c) A vacancy on the SC board which results in an unexpired term may be filled by
appointment by the SC board of directors until such vacancy can be filled at the next board
election.
(d) At the organizational meeting, the SC board shall choose its officers and conduct any
other necessary organizational business. The SC board may, at its discretion, appoint up to three
members at large to the SC board as ex officio, nonvoting members of the board and shall
encourage the advisory participation of a cross-section of school and agency personnel within
the SC to the extent allowed by law.
(e) The officers of the SC board shall be a chair, vice-chair, clerk, and treasurer, no two of
whom when possible shall be from the same agency.
(f) A member of the SC board shall have the same liability applicable to a member of an
independent school board or other elected governmental officials.
    Subd. 5. Duties and powers of SC board of directors. The board of directors shall have
authority to maintain and operate a SC. Subject to the availability of necessary resources, the
powers and duties of this board shall include the following:
(a) The board of directors shall submit, by June 1 of each year to each participating member,
an annual plan which describes the objectives and procedures to be implemented in assisting in
resolution of the needs of the SC.
(b) The SC board of directors shall provide adequate office, service center, and administrative
facilities by lease, purchase, gift, or otherwise.
(c) The SC board of directors shall employ a central administrative staff and other personnel
as necessary to provide and support the agreed upon programs and services. The board may
discharge staff and personnel pursuant to applicable provisions of law. SC staff and personnel
may participate in retirement programs and any other programs available to public school staff
and personnel.
(d) The SC board of directors may appoint special advisory committees composed of
superintendents, central office personnel, building principals, teachers, parents, lay persons, and
representatives from cities, counties, and other governmental units.
(e) The SC board of directors may employ service area personnel pursuant to licensure and
certification standards developed by the appropriate state agency such as the commissioner and
the State Board of Teaching.
(f) The SC board of directors may enter into contracts with school boards of local districts
including school districts outside the SC area.
(g) The SC board of directors may enter into contracts with other public and private agencies
and institutions to provide administrative staff and other personnel as necessary to furnish and
support the agreed upon programs and services.
(h) The SC board of directors shall exercise all powers and carry out all duties delegated to it
by members under provisions of the SC bylaws. The SC board of directors shall be governed,
when not otherwise provided, by applicable laws of the state.
(i) The SC board of directors shall submit an annual evaluation report of the effectiveness of
programs and services to the members by September 1 of each year following the previous June
30 in which the programs and services were provided.
(j) The SC board is encouraged to establish cooperative, working relationships and
partnerships with postsecondary educational institutions, other public agencies, business, and
industry.
    Subd. 6. Appointment of an advisory council. There may be advisory councils selected
to give advice and counsel to the SC board of directors. The councils may be composed of
representatives from public and nonpublic schools, cities, counties, and other governmental units.
    Subd. 7. Educational programs and services. (a) The board of directors of each SC
shall submit annually a plan to the members. The plan shall identify the programs and services
which are suggested for implementation by the SC during the following year and shall contain
components of long-range planning determined by the SC. These programs and services may
include, but are not limited to, the following areas:
(1) administrative services;
(2) curriculum development;
(3) data processing;
(4) distance learning and other telecommunication services;
(5) evaluation and research;
(6) staff development;
(7) media and technology centers;
(8) publication and dissemination of materials;
(9) pupil personnel services;
(10) planning;
(11) secondary, postsecondary, community, adult, and adult vocational education;
(12) teaching and learning services, including services for students with special talents
and special needs;
(13) employee personnel services;
(14) vocational rehabilitation;
(15) health, diagnostic, and child development services and centers;
(16) leadership or direction in early childhood and family education;
(17) community services;
(18) shared time programs;
(19) fiscal services and risk management programs, including health insurance programs
providing reinsurance or stop loss coverage;
(20) technology planning, training, and support services;
(21) health and safety services;
(22) student academic challenges; and
(23) cooperative purchasing services.
An SC is subject to regulation and oversight by the commissioner of commerce under the
insurance laws of this state when operating a health reinsurance program pursuant to clause (19)
providing reinsurance or stop loss coverage.
(b) A group health, dental, or long-term disability coverage program provided by one or
more service cooperatives may provide coverage to nursing homes licensed under chapter
144A and to boarding care homes licensed under sections 144.50 to 144.56 and certified for
participation in the medical assistance program located in this state.
(c) A group health, dental, or long-term disability coverage program provided by one or
more service cooperatives:
(1) must rebid contracts for insurance and third-party administration at least every four years.
The contracts may be regional or statewide in the discretion of the SC; and
(2) may determine premiums for its health, dental, or long-term disability coverage
individually for specific employers or may determine them on a pooled or other basis established
by the SC.
    Subd. 8. Technical assistance. Service cooperatives shall, to the extent possible, make
technical assistance for long-range planning available to school districts upon request and shall
establish a common database for local and regional decision making.
    Subd. 9. Financial support for the service cooperatives. (a) Financial support for SC
programs and services shall be provided by participating members with private, state, and federal
financial support supplementing as available. The SC board of directors may, in each year, for the
purpose of paying any administrative, planning, operating, or capital expenses incurred or to be
incurred, assess and certify to each participating school district, nonpublic school administrative
unit, city, county, and other governmental unit its proportionate share of all expenses. This
share shall be based upon the extent of participation by each school district, nonpublic school
administrative unit, city, county, or other governmental unit and shall be in the form of a service
fee. Each participating school district, nonpublic school administrative unit, city, county, or other
governmental unit shall remit its assessment to the SC board as provided in the SC bylaws. The
assessments shall be paid within the maximum levy limitations of each participating member. No
participating member shall have any additional liability for the debts or obligations of the SC
except that assessment which has been certified as its proportionate share and any other liability
the member assumes under section 123A.24, subdivisions 1 and 2.
(b) Any property acquired by the SC board is public property to be used for essential public
and governmental purposes which shall be exempt from all taxes and special assessments levied
by a city, county, state, or political subdivision thereof. If the SC is dissolved, its property must be
distributed to the members at the time of the dissolution.
(c) A member may elect to withdraw participation in the SC by a majority vote of its full
board membership and upon compliance with the applicable withdrawal provisions of the SC
organizational agreement. The withdrawal shall be effective on the June 30 following receipt by
the board of directors of written notification of the withdrawal by February 1 of the same year.
Notwithstanding the withdrawal, the proportionate share of any expenses already certified to the
withdrawing member for the SC shall be paid to the SC board.
(d) The SC is a public corporation and agency and its board of directors may make
application for, accept, and expend private, state, and federal funds that are available for programs
of the members.
(e) The SC is a public corporation and agency and as such, no earnings or interests of the
SC may inure to the benefit of an individual or private entity.
    Subd. 10. Annual meeting. Each SC shall conduct a meeting at least annually for its
members.
    Subd. 11. Joint Powers Act. Nothing in this section shall restrict the authority granted to
school district boards of education by section 471.59.
    Subd. 12. Health Coverage Pool Comparison Shopping. (a) Service cooperatives must
permit school districts and other political subdivisions participating in a service cooperative health
coverage pool to solicit bids and other information from competing sources of health coverage at
any time other than within five months prior to the end of a master agreement.
(b) A service cooperative must not impose a fine or other penalty against an enrolled entity
for soliciting a bid or other information during the allowed period. The service cooperative may
prohibit the entity from participating in service cooperative coverage for a period of up to one
year, if the entity leaves the service cooperative pool and obtains other health coverage.
(c) A service cooperative must provide each enrolled entity with the entity's monthly claims
data. This paragraph applies notwithstanding section 13.203.
History: 1Sp1995 c 3 art 9 s 25; 1998 c 397 art 5 s 97,104; art 11 s 3; 1998 c 398 art
5 s 55; 2006 c 255 s 72,73
123A.22 COOPERATIVE CENTERS FOR VOCATIONAL EDUCATION.
    Subdivision 1. Establishment. Two or more independent school districts may enter into
an agreement to establish a cooperative center to provide for vocational education and other
educational services upon the vote of a majority of the full membership of each of the boards of
the districts entering into the agreement. The agreement may also provide for membership by
cities, counties, and other governmental units as defined in section 471.59. When a resolution
approving this action has been adopted by the board of a district, the resolution shall be published
once in a newspaper of general circulation in the district. If a petition for referendum on the
question of the district entering into the agreement, containing signatures of qualified voters of the
district equal to five percent of the number of voters at the last school district general election, is
filed with the clerk of the board within 60 days after publication of the resolution, the board must
not enter into the agreement until the question has been submitted to the voters of the district at a
special election. This election must be conducted and canvassed in the same manner as school
district general elections. If a majority of the total number of votes cast on the question within
the district is in favor of the proposition, the board may enter into an agreement to establish the
center for purposes described in this section.
    Subd. 2. Name. A public corporation so created shall be known as ....(insert name)....
Cooperative Center No. ..... and shall have an identification number assigned pursuant to section
123A.56.
    Subd. 3. Governing board. (a) The center must be operated by a center board of not less
than five members which shall consist of members from boards of each of the participating
districts within the center and member cities, counties, and other governmental units, appointed
by their respective boards. Each participating district must have at least one member on the center
board. The center board must choose an administrative officer to administer center board policy
and directives who shall serve as an ex officio member of the board but shall not have a vote.
(b) The terms of office of the first members of the center board must be determined by lot as
follows: one-third of the members for one year, one-third for two years, and the remainder for
three years, all terms to expire on June 30 of the appropriate year; provided that if the number of
members is not evenly divisible by three, the membership will be as evenly distributed as possible
among one, two and three year terms with the remaining members serving the three year term.
Thereafter the terms shall be for three years commencing on July 1 of each year. If a vacancy
occurs on the center board, it must be filled by the appropriate school board within 90 days. A
person appointed to the center board shall qualify as a center board member by filing with the
chair a written certificate of appointment from the appointing school board.
(c) The first meeting of a center board must be at a time mutually agreed upon by center
board members. At this meeting, the center board must choose its officers and conduct any other
necessary organizational business. Thereafter the center board must meet on July 1 of each year
or as soon thereafter as practicable pursuant to notice sent to all center board members by the
chief executive officer of the center.
(d) The officers of the center board shall be a chair, vice-chair, clerk and treasurer, no two of
whom when possible shall be from the same school district. The chair shall preside at all meetings
of the center board except in the chair's absence the vice-chair shall preside. The clerk shall keep a
complete record of the minutes of each meeting and the treasurer shall be the custodian of the
funds of the center. Insofar as applicable, sections 123B.09, 123B.14, 123B.143, and 123B.147,
shall apply to the board and officers of the center.
(e) Each participating district must have equal voting power with at least one vote. A
majority of the center board shall be a quorum. Any motion other than adjournment shall pass
only upon receiving a majority of the votes of the entire center board.
    Subd. 4. Center board powers and duties. (a) The center board shall have the general
charge of the business of the center and the ownership of facilities. Where applicable, sections
123B.51 and 123B.52, subdivision 4, shall apply. The center board may not issue bonds in
its behalf. Each participating district may issue its bonds for the purpose of acquisition and
betterment of center facilities in the amount certified by the center board to such participating
district in accordance with chapter 475.
(b) The center board (1) may furnish vocational offerings to any eligible person residing in
any participating district; (2) may provide special education for the disabled and disadvantaged;
and (3) may provide any other educational programs or services defined in section 123A.21,
subdivisions 7 and 8
, agreed upon by the participating members. Academic offerings shall be
provided only under the direction of properly licensed academic supervisory personnel.
(c) In accordance with subdivision 5, paragraph (b), the center board shall certify to each
participating district the amount of funds assessed to the district as its proportionate share
required for the conduct of the educational programs, payment of indebtedness, and all other
proper expenses of the center.
(d) The center board must employ and contract with necessary qualified teachers and
administrators and may discharge the same for cause pursuant to section 122A.40. The authority
for selection and employment of a director shall be vested in the center board. Notwithstanding
the provisions of section 122A.40, subdivision 10 or 11, no individual shall have a right to
employment as a director based on seniority or order of employment by the center. The center
board may employ and discharge other necessary employees and may contract for other services
deemed necessary.
(e) The center board may provide an educational program for secondary and adult vocational
phases of instruction. The high school phase of its educational program must be offered as a
component of the comprehensive curriculum offered by each of the participating school districts.
Graduation must be from the student's resident high school district. Insofar as applicable, sections
120A.22, subdivision 1a, 120B.14, 120B.35, 121A.21, 122A.44, 122A.69, 123A.22, 123A.24,
123B.02, subdivisions 1 to 15 and 17 to 20, 123B.49, 123B.51, 123B.52, 123B.88, 124D.02,
124D.09, and 124D.51, shall apply.
(f) The center board may prescribe rates of tuition for attendance in its programs by adults
and nonmember district secondary students.
    Subd. 5. Financing. (a) Any center board established pursuant to this section is a public
corporation and agency and may receive and disburse federal, state, and local funds made
available to it. A participating school district or member must not have any additional individual
liability for the debts or obligations of the center except that assessment which has been certified
as its proportionate share in accordance with paragraph (b) and subdivision 4, paragraphs (a) and
(c). A member of the center board shall have such liability as is applicable to a member of an
independent school district board. Any property, real or personal, acquired or owned by the center
board for its purposes shall be exempt from taxation by the state or any of its political subdivisions.
(b) The center board may, in each year, for the purpose of paying any administrative,
planning, operating, or capital expenses incurred or to be incurred, assess and certify to each
participating school district its proportionate share of any and all expenses. This share must be
based upon an equitable distribution formula agreed upon by the participating districts. Each
participating district shall remit its assessment to the center board within 30 days after receipt.
The assessments shall be paid within the maximum levy limitations of each participating district.
    Subd. 6. Commissioner approval. Before a center begins operation, the commissioner must
approve the agreement establishing the center entered into by participating districts.
    Subd. 7. Laws governing independent school districts apply. As of the effective date of
the creation of any center as contained in the agreement establishing the center, the organization,
operation, maintenance, and conduct of the affairs of the center shall be governed by the general
laws relating to independent school districts of the state unless provided otherwise in statute.
    Subd. 8. Addition and withdrawal of districts. Upon approval by majority vote of a board
and of the center board, an adjoining district may become a member in the center and be governed
by the provisions of this section and the agreement in effect.
Any participating district may withdraw from the center and from the agreement in effect by
a majority vote of the full board membership of the participating district desiring withdrawal and
upon compliance with provisions in the agreement establishing the center. Upon receipt of the
withdrawal resolution reciting the necessary facts, the center board must file a certified copy with
the county auditors of the counties affected. The withdrawal shall become effective at the end of
the next following school year but the withdrawal shall not affect the continued liability of the
withdrawing district for bonded indebtedness it incurred prior to the effective withdrawal date.
    Subd. 9. Dissolution. The boards of each participating district may agree to dissolve a
center effective at the end of any school year or at an earlier time as they may mutually agree. A
dissolution must be accomplished in accordance with any applicable provisions of the agreement
establishing the center. Upon receipt of the dissolution resolutions from the boards of the
participating districts, the center board shall file a certified copy with the county auditors of
the counties affected. The dissolution must not affect the continuing liability of the previously
participating districts for bonded indebtedness incurred prior to the dissolution, or for other
continuing obligations, including unemployment benefits.
    Subd. 10. Existing centers. Centers operating pursuant to section 471.59 which have
been approved by the State Board of Education prior to August 1, 1974, shall be subject to
its provisions except subdivision 1. Any changes in center agreements necessary to comply
with this section shall be completed within 12 months after August 1, 1974, and filed with the
commissioner by the administrator of each center. Centers operating pursuant to Laws 1967,
chapter 822, as amended, Laws 1969, chapter 775, as amended, and Laws 1969, chapter 1060, as
amended shall not be subject to the provisions of this section.
    Subd. 11.[Repealed, 2007 c 146 art 11 s 19]
History: 1974 c 252 s 1; 1977 c 447 art 5 s 1,2; 1982 c 548 art 5 s 2; 1983 c 314 art 7 s 19;
1986 c 444; 1987 c 266 art 2 s 10; 1988 c 718 art 6 s 4; 1991 c 265 art 6 s 23; 1992 c 499 art 6 s
39; 1993 c 224 art 13 s 18-20; 1994 c 488 s 8; 1994 c 647 art 6 s 14,42; 1Sp1995 c 3 art 9 s
21-24; 1996 c 412 art 13 s 12; 1998 c 397 art 5 s 91-96,104; art 11 s 3; 1999 c 107 s 66; 2000 c
254 s 4,5; 2000 c 343 s 4; 2000 c 489 art 10 s 21; 2005 c 56 s 1
123A.23 REGIONAL MANAGEMENT INFORMATION CENTERS.
    Subdivision 1. Creation. Any group of two or more independent, special or common school
districts may create a regional management information center pursuant to section 123A.21 or
471.59 to provide computer services to school districts.
    Subd. 2. Center for districts with alternative systems. Districts that operate alternative
systems approved by the commissioner according to section 125B.07, subdivision 4, may create
one regional management information center under section 471.59. The center shall have all of
the powers authorized under section 471.59.
The center board may purchase or lease equipment. It may not employ any staff but may
enter into a term contract for services. A person providing services according to a contract with
the center board is not a state employee.
The department shall provide the center all services that are provided to regional centers
formed under subdivision 1, including transferring software and providing accounting assistance.
    Subd. 3. Fees. Regional management information centers may charge fees to affiliated
districts for the cost of services provided to the district.
    Subd. 4. Financial management information services. Regional management information
centers may provide financial management information services to cities, counties, towns, or other
governmental units at mutually negotiated prices.
History: 1980 c 609 art 7 s 14; 1981 c 358 art 5 s 4,5; 1984 c 463 art 7 s 5,6; 1987 c 258 s
12; 1987 c 398 art 7 s 11; 1989 c 329 art 11 s 6; 1990 c 562 art 8 s 11-13; 1991 c 265 art 6 s 4,5;
art 9 s 23-26; 1992 c 499 art 6 s 3,4; art 8 s 3; 1993 c 224 art 13 s 10,11; art 14 s 16; 1994 c
465 art 2 s 1; 1994 c 647 art 6 s 2,42; 1Sp1995 c 3 art 9 s 12; art 13 s 3; 1996 c 412 art 13 s 8;
1997 c 397 art 5 s 104; art 11 s 3
123A.24 WITHDRAWING FROM COOPERATIVE UNIT; APPEALING DENIAL OF
MEMBERSHIP.
    Subdivision 1. Distribution of assets and liabilities. (a) If a district withdraws from a
cooperative unit defined in subdivision 2, the distribution of assets and assignment of liabilities to
the withdrawing district shall be determined according to this subdivision.
(b) The withdrawing district remains responsible for its share of debt incurred by the
cooperative unit according to section 123B.02, subdivision 3. The district and cooperative
unit may mutually agree, through a board resolution by each, to terms and conditions of the
distribution of assets and the assignment of liabilities.
(c) If the cooperative unit and the district cannot agree on the terms and conditions, the
commissioner shall resolve the dispute by determining the district's proportionate share of assets
and liabilities based on the district's enrollment, financial contribution, usage, or other factor or
combination of factors determined appropriate by the commissioner. The assets must be disbursed
to the withdrawing district in a manner that minimizes financial disruption to the cooperative unit.
(d) Assets related to an insurance pool shall not be disbursed to a member district under
paragraph (c).
    Subd. 2. Cooperative unit defined. For the purposes of this section, a cooperative unit is:
(1) an education district organized under sections 123A.15 to 123A.19;
(2) a cooperative vocational center organized under section 123A.22;
(3) an intermediate district organized under chapter 136D;
(4) a service cooperative organized under section 123A.21; or
(5) a regional management information center organized under section 123A.23 or as a joint
powers district according to section 471.59.
    Subd. 3. Appealing denial of membership to commissioner. If a cooperative unit as
defined in subdivision 2, denies membership in the unit to a district, the district may appeal
to the commissioner. The commissioner may require the cooperative unit to grant the district
membership.
History: Ex1959 c 71 art 4 s 17; 1961 c 225 s 1; 1967 c 173 s 2; 1969 c 21 s 1; 1969 c 104
s 1; 1973 c 491 s 1; 1975 c 359 s 23; 1978 c 616 s 5; 1979 c 334 art 6 s 9; 1980 c 609 art 6 s
16; 1981 c 194 s 1; 1981 c 358 art 7 s 22; 1982 c 548 art 6 s 4; 1986 c 444; 1987 c 309 s 24;
1987 c 398 art 7 s 20; 1988 c 626 s 1; 1988 c 668 s 2; 1988 c 718 art 7 s 21; 1991 c 265 art 6
s 22; art 9 s 36; 1992 c 499 art 12 s 8; 1993 c 224 art 12 s 16; art 13 s 17; 1994 c 647 art 6 s
11-13; 1Sp1995 c 3 art 9 s 20; art 16 s 13; 1996 c 412 art 3 s 10; art 6 s 1; 1Sp1997 c 4 art 6 s 7;
art 7 s 4; 1998 c 397 art 1 s 54; art 3 s 53; art 5 s 88-90,104; art 6 s 62-68; art 8 s 1,2; art 11
s 3; 1998 c 398 art 6 s 17
123A.245 COOPERATIVE UNITS; ELIGIBILITY FOR GRANTS.
A cooperative unit, through its governing board, may apply for all competitive grants
administered by agencies of the state and other government or nongovernment sources.
History: 1999 c 241 art 9 s 18
123A.25 COOPERATIVE UNIT; INSURANCE POOLS.
Any cooperative unit defined in section 123A.24, subdivision 2, 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.
History: 1994 c 647 art 6 s 10; 1998 c 397 art 5 s 104; art 11 s 3
123A.26 COOPERATIVE UNITS; PROHIBITED AID AND LEVIES.
    Subdivision 1. General prohibition. Unless specifically permitted in the provision
authorizing an aid or a levy, cooperative units of government defined in section 123A.24,
subdivision 2
, are prohibited from making a property tax levy or qualifying for or receiving any
form of state aid except as provided in subdivisions 2 and 3.
    Subd. 2. Grants. A cooperative unit may apply for and receive a grant on behalf of its
members.
    Subd. 3. Allocation from members. By July 15 of each year, a school district may, by
board resolution, request the department to make a payment to a third party. The total sum of
the payments for the year may not exceed the lesser of (a) the district's general education aid for
the fiscal year beginning July 1, according to sections 127A.47, subdivision 7, and 126C.13,
subdivision 4
, or (b) an amount equal to $100 times the adjusted pupil units for the fiscal year
beginning July 1. By July 30 of each year, the school district must report to the commissioner
the amount allocated. The amount shall be paid to the third party according to section 127A.45,
subdivision 16
. Amounts paid to third parties under this subdivision shall be recognized and
reported as revenues and expenditures on the school district's books of account under sections
123B.75 and 123B.76.
History: 1994 c 647 art 6 s 22; 1Sp1995 c 3 art 9 s 27; 1Sp1997 c 4 art 3 s 11; 1998 c
397 art 5 s 104; art 11 s 3
123A.27 RESERVED REVENUE FOR DISTRICT COOPERATION.
A district that was a member of an intermediate school district organized pursuant to chapter
136D on July 1, 1996, must place a portion of its general education revenue in a reserved account
for instructional services from entities formed for cooperative services for special education
programs and secondary vocational programs. The amount reserved is equal to the levy made
according to Minnesota Statutes 1993 Supplement, section 124.2727, subdivision 6, for taxes
payable in 1994 divided by the actual pupil units in the intermediate school district for fiscal year
1995 times the number of actual pupil units in the school district in 1995. The district must
use 5/11 of the revenue for special education and 6/11 of the revenue for secondary vocational
education. The district must demonstrate that the revenue is being used to provide the full range of
special education and secondary vocational programs and services available to each child served
by the intermediate. The secondary vocational programs and services must meet the requirements
established in an articulation agreement developed between the commissioner of education and
the Board of Trustees of the Minnesota State Colleges and Universities.
A district that was a member of an education district organized pursuant to section 123A.15
on July 1, 1999, must place a portion of its general education revenue in a reserve account
for instructional services from entities formed for cooperative services. Services may include
secondary vocational programs, special education programs, staff development, and gifted and
talented instruction. The amount reserved is equal to $50 per pupil unit times the actual number of
pupil units in the district.
History: 1998 c 397 art 11 s 3; 1998 c 398 art 1 s 32; art 5 s 55; 2000 c 254 s 6; 2003
c 130 s 12

COOPERATION AND COMBINATION

123A.30 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 board may enter into one or more agreements providing for
instruction of its secondary pupils in one or more districts. The agreement must be effective on
July 1 and shall be for a specified or indefinite number of years. The agreement must 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 123A.488, 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 122A.54, or placement on unrequested leave of absence of teachers whose positions
are discontinued as a result of the agreement.
    Subd. 3. Public hearing. Before entering into agreements permitted by subdivision 2, the
board must hold a public hearing. The board must 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 must submit the agreement to the commissioner for review
and comment.
    Subd. 5. Aid payments. A district entering into an agreement permitted in subdivision 2
must 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 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 must 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, but not a superintendent;
(2) has a continuing contract with the district according to section 122A.40, subdivision 7.
The amount of severance pay must 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 requiring a valid Minnesota teaching license include, but are not
limited to, the district that placed the teacher on unrequested leave of absence, another district in
Minnesota, an education district, an intermediate school district, a service cooperative, a board
formed under section 471.59, a state residential academy, the Perpich Center for Arts Education,
a vocational center, or a special education cooperative. These entities do not include a district
in another state, a Minnesota public postsecondary 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 must 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 must 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 122A.40, subdivision 10 or 11. 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 126C.43, for the severance pay.
History: 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; 1998 c 397 art 5 s 65-69,104; art 11 s 3; 1999 c 241 art 10 s 8
123A.32 INTERDISTRICT COOPERATION.
    Subdivision 1. District requirements. The boards of two or more districts may, after
consultation with the department, 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 must continue to operate a school with at least three grades. Before entering into a
final agreement, the boards must provide a copy of this agreement to the commissioner.
    Subd. 2. Aid; transportation. (a) Each district must 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 must provide for tuition payments between or among the districts.
(b) Each district must continue to provide transportation and collect transportation aid for
its resident pupils pursuant to sections 123B.88 and 123B.92. A district may provide some or
all transportation to its resident pupils by contracting with a cooperating district. For purposes
of section 123B.92, the commissioner may adjust the base cost per eligible pupil transported to
reflect changes in costs resulting from the agreement.
    Subd. 3. Negotiated plan for teachers whose positions are discontinued. The 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 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. 4. Combined teacher 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 122A.54. 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 district must be considered to have started
school each year on the same date.
    Subd. 5. Notice; informational meeting. Prior to entering into an agreement, the board shall
consult with the community at an informational meeting. The board must 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. 6. Meeting location. Notwithstanding any law to the contrary, boards that have an
agreement may hold a valid joint meeting at any location that would be permissible for one of
the boards participating in the meeting. A board that has an agreement may hold a meeting in
any district that is a party to the agreement. The board shall comply with chapter 13D and any
other law applicable to a meeting of a board.
History: 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; 1998 c 397 art 5 s 70-75,104; art 11 s 3
123A.33 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 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 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 123A.15 to 123A.19;
(2) a cooperative vocational center organized according to section 123A.22;
(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) districts participating in an agreement for the cooperative provision of special education
services to children with disabilities according to section 125A.11.
    Subd. 3. Agreements for cooperative special education. (a) Upon the termination of an
agreement according to section 125A.11, a teacher employed to provide special education services
by a district participating in the agreement will be afforded rights to employment by other districts
according to subdivisions 4, 5, and 6. 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 9.
(b) Upon a district's withdrawal from the cooperative provision of special education under
an agreement according to section 125A.11, a teacher employed to provide special education
services by a participating district will be afforded rights to employment by other districts
according to subdivisions 4, 7, and 8. 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 10.
    Subd. 4. Notification of teachers. In any year in which a cooperative dissolves or a member
withdraws from a cooperative, the governing board of a cooperative must 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. 5. 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 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 4 constitutes a waiver of the
teacher's rights under this subdivision.
The member district must 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 6.
    Subd. 6. 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 5, paragraph (b).
(b) By May 10 of the school year in which the cooperative provides the notice required by
subdivision 4, clause (1), the cooperative must provide to each teacher described in subdivision 5
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 district after
any reasonable realignments which may be necessary under the applicable provisions of section
122A.40, subdivision 10 or 11, 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 4, clause (1), any teacher wishing to do so must file with the board a
written notice of the teacher's intention to exercise the teacher's rights to an available teaching
position. Available teaching positions must 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 124D.03,
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 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 must 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. 7. 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 4 constitutes
a waiver of a teacher's rights under this subdivision.
The member district must 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. 8. 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 122A.40, subdivision 10 or 11, in the year in which the cooperative provides the
notice required by subdivision 4, 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 124D.03, 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 must 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 must 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. 9. 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 must 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 must 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 must 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. 10. 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 must 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 must 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 must 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. 11. Cooperatives that merge. (a) Notwithstanding subdivisions 1 to 10, paragraphs
(b) and (c) apply to cooperatives that merge.
(b) 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 must include the plans in their agreement.
(c) If compatible plans are not negotiated under paragraph (b) by the March 1 preceding
the effective date of the merger of the cooperatives, subdivisions 2 to 10 apply to teachers and
nonlicensed employees whose positions are terminated as a result of an agreement to merge
cooperatives.
History: 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; 1998 c 397 art 5 s 76,104; art 11 s 3
123A.35 COOPERATION AND COMBINATION.
    Subdivision 1. Scope. Sections 123A.35 to 123A.43 establish procedures for 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 must:
(1) implement a written agreement according to section 123A.32 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 service cooperative, 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 Minnesota Statutes 1996, 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 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 126C.10,
subdivision 7
, 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. 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.
History: 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; 1998 c 397 art 5 s 34,104; art 11 s 3
123A.36 COOPERATION AND COMBINATION PLAN.
    Subdivision 1. Adoption and commissioner review. Each 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 commissioner of education and the secretary of state for review and comment.
Significant modifications and specific resolutions of items must be submitted to the commissioner
for review and comment. In the official newspaper of each district proposed for combination, the
board must publish at least a summary of the adopted plans, each significant modification and
resolution of items, and each commissioner review and comment.
    Subd. 2. Rule exemptions. The plan must identify the rules of the commissioner 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 board or whether it would have one
elected board and one elected board for each elementary school exercising powers and duties
delegated to it by the board of the entire district;
(2) how many of the existing members of each district would become members of the 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 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 123B.143, subdivision 1; 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 123A.75;
(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 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 123B.63, and
referendum levies;
(4) whether the cooperating or combined district will levy for reorganization operating debt
according to section 123B.82, clause (1); and
(5) two- and five-year projections, prepared by the department 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.
History: 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; 1998 c 397 art 5 s 35-38,104; art 11 s 3; 1998
c 398 art 5 s 55; 2003 c 130 s 12
123A.37 COMMISSIONER AND VOTER APPROVAL.
    Subdivision 1. Commissioner approval. Before submitting the question of combining
districts to the voters at a referendum, the cooperating districts must submit the proposed
combination to the commissioner. 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 boards.
    Subd. 2. Voter approval. A referendum on the question of combination must be conducted
during the first or second year of cooperation for districts that cooperate according to section
123A.35, or no more than 18 months before the effective date of combination for districts that
do not cooperate. The referendum must be on a date called by the boards. The referendum must
be conducted by the 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 must 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 123A.39, subdivision 3, until the following
year. Referendums shall be conducted on the same date in all districts.
History: 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; 1998 c 397 art 5 s 39,104; art 11 s 3
123A.38 EFFECTIVE DATE OF COMBINATION.
The effective date for combination of districts shall be July 1.
History: 1989 c 329 art 6 s 8; 1998 c 397 art 5 s 104
123A.39 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
123A.32, subdivision 4, unless compatible plans are negotiated according to section 123A.32,
subdivision 3
. The districts shall comply with section 123A.75.
    Subd. 2. Nonlicensed employees termination. If compatible plans are not negotiated
according to section 123A.36, subdivision 5, the 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. Retirement and severance levy. A cooperating or combined district that levied
under Minnesota Statutes 1996, section 124.2725, subdivision 3, for taxes payable in 1995 may
levy for severance pay or early retirement incentives for licensed and nonlicensed employees
who retire early as a result of the cooperation or combination.
    Subd. 4. 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.
History: 1989 c 329 art 6 s 9,37; 1990 c 562 art 6 s 22-26; 1991 c 130 s 37; 1991 c 265 art
6 s 34-38; 1992 c 499 art 6 s 16,17; art 12 s 29; 1993 c 224 art 6 s 9-15; art 13 s 37,38; 1994
c 647 art 1 s 11; 1Sp1995 c 3 art 6 s 6-9; art 16 s 13; 1997 c 7 art 1 s 53; 1998 c 397 art 5 s
40,98,104; art 11 s 3
123A.40 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 must be submitted to the county auditor of the county that has
the greatest land area in the proposed district. The plat must 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 boards or the county auditor.
History: 1989 c 329 art 6 s 10; 1998 c 397 art 5 s 41,104
123A.41 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 123A.73, subdivision 4, 5, or 6,
and must be consistent with the plan adopted according to section 123A.36, 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 board consistent with the plan adopted according to section
123A.36, 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. 3. Capital loan. The combined board may levy for the obligations for a capital loan
outstanding at the time of combination, consistent with the plan adopted according to section
123A.36 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. 4. Transitional levy. The board of the combined district, or the boards of combining
districts that have received voter approval for the combination under section 123A.37, 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 education.
History: 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; 1998 c 397 art 5 s 42,43,104; art 11 s 3; 2003 c 130 s 12
123A.43 REPORTS TO DEPARTMENT OF EDUCATION.
Cooperating districts may submit joint reports and jointly provide information required by
the department. The joint reports must allow information to be attributed to each district. A
combined district must report and provide information as a single unit.
History: 1989 c 329 art 6 s 12; 1Sp1995 c 3 art 16 s 13; 1998 c 397 art 5 s 44,104
123A.44 CITATION.
    Sections 123A.441 to 123A.446 may be cited as the "Cooperative Facilities Grant Act."
History: 1987 c 400 s 33,59; 1989 c 300 art 2 s 13; 1991 c 199 art 2 s 1; 1998 c 397
art 7 s 164; art 11 s 3; 1999 c 241 art 4 s 29; 2000 c 464 art 3 s 9; 2000 c 489 art 5 s 19,27;
2007 c 146 art 4 s 1
123A.441 POLICY AND PURPOSE.
    Because of the rates of decline in school-aged population, population shifts and economic
changes that the state has experienced in recent years and anticipates in future years, and because
in some instances local districts have not, and will not be able to provide the required construction
funds through local property taxes, the purpose of the cooperative facilities grant program is
to provide an incentive to encourage cooperation in making available to all students those
educational programs, services and facilities that are most efficiently and effectively provided by a
cooperative effort of school districts. The policy and purpose of sections 123A.442 to 123A.446 is
to use the credit of the state, to a limited degree, to provide grants to cooperating groups of districts
to improve and expand the educational opportunities and facilities available to their students.
History: 1987 c 400 s 34,59; 1989 c 300 art 2 s 13; 1998 c 397 art 7 s 66,164; art 11 s 3;
1999 c 241 art 4 s 29; 2000 c 464 art 3 s 9; 2000 c 489 art 5 s 19,27; 2007 c 146 art 4 s 2
123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
    Subdivision 1. Approval by commissioner. To the extent money is available, the
commissioner may approve projects from applications submitted under section 123A.443. The
grant money must be used only to acquire, construct, remodel or improve the building or site of a
cooperative facility under contracts to be entered into within 15 months after the date on which
each grant is awarded.
    Subd. 2. Cooperation and consolidation. Districts that have not already consolidated
and receive a cooperative facilities grant shall:
    (1) submit a consolidation plan under section 123A.48 for approval by the Department of
Education; and
    (2) hold a referendum on the question of consolidation no later than four years after a grant is
awarded under subdivision 1.
    The districts are eligible for consolidation revenue under section 123A.485.
    Subd. 3. Consolidated districts. A school district that has consolidated with another school
district since July 1, 1980, is eligible for a cooperative facilities grant.
History: 1987 c 400 s 35,59; 1989 c 300 art 2 s 13; 1991 c 265 art 6 s 40; 1992 c 499 art 5 s
8,9; 1Sp1995 c 3 art 16 s 13; 1998 c 397 art 7 s 67,164; art 11 s 3; 1999 c 241 art 4 s 29; 2000 c
464 art 3 s 9; 2000 c 489 art 5 s 19,27; 2004 c 294 art 5 s 3; 2007 c 146 art 4 s 3
123A.443 GRANT APPLICATION PROCESS.
    Subdivision 1. Qualification. Any group of districts or a consolidated district that meets
the criteria required under subdivision 2 may apply for an incentive grant for construction of a
new facility or for remodeling and improving an existing facility. A grant for new construction
must not exceed the lesser of $20,000,000, or 75 percent of the approved construction costs of a
cooperative education facility. A grant for remodeling and improving an existing facility must not
exceed the lesser of $10,000,000, or 75 percent of the approved remodeling costs.
    Subd. 2. Review by commissioner. (a) A group of districts or a consolidated district that
submits an application for a grant must submit a proposal to the commissioner for review and
comment under section 123B.71. The commissioner shall prepare a review and comment on the
proposed facility by July 1 of an odd-numbered year, regardless of the amount of the capital
expenditure required to acquire, construct, remodel or improve the facility. The commissioner
shall not approve an application for an incentive grant for any facility unless the facility receives a
favorable review and comment under section 123B.71 and the following criteria are met:
    (1) the applicant is a consolidated district or a minimum of two or more districts that have
entered into a joint powers agreement;
    (2) for a group of districts, a joint powers board representing all participating districts is
established under section 471.59 to govern the cooperative facility;
    (3) for a group of districts, no more than one superintendent is employed by the joint powers
board as a result of the cooperative facility agreement;
     (4) a statement of need is submitted, that may include reasons why the current facilities are
inadequate, unsafe, or inaccessible to persons with disabilities;
     (5) an educational plan is prepared, that includes input from both community and
professional staff;
     (6) for a group of districts, a combined seniority list for all participating districts is developed
by the joint powers board;
     (7) for a group of districts, an education program is developed that provides for more
learning opportunities and course offerings, including the offering of advanced placement courses,
for students than is currently available in any single member district;
     (8) a plan is developed for providing instruction of any resident students in other districts
when distance to the education facility makes attendance at the facility unreasonably difficult or
impractical; and
     (9) for a secondary facility, the joint powers board established under clause (2) discusses
with technical colleges located in the area how vocational education space in the cooperative
facility could be jointly used for secondary and postsecondary purposes.
    (b) To the extent possible, the joint powers board is encouraged to provide for severance
pay or for early retirement incentives under section 122A.48, for any teacher or administrator, as
defined under section 122A.40, subdivision 1, who is placed on unrequested leave as a result of
the cooperative facility agreement.
    (c) For the purpose of paragraph (a), clause (6), each district must be considered to have
started school each year on the same date.
    (d) The districts may develop a plan that provides for the location of social service, health,
and other programs serving pupils and community residents within the cooperative facility. The
commissioner shall consider this plan when preparing a review and comment on the proposed
facility.
    (e) The districts must schedule and conduct a meeting on library services. The school districts,
in cooperation with the regional public library system and its appropriate member libraries, must
discuss the possibility of including jointly operated library services at the cooperative facility.
    (f) The board of a district that has reorganized under section 123A.37 or 123A.48 and that
is applying for a grant for remodeling or improving an existing facility may act in the place of
a joint powers board to meet the criteria of this subdivision.
    Subd. 3. Reorganizing districts. A district that is a member of a joint powers board
established under subdivision 2 and that is planning to reorganize under section 123A.45,
123A.46, or 123A.48 must notify the joint powers board one year in advance of the effective
date of the reorganization. Notwithstanding section 471.59 or any other law to the contrary, the
board of a district that reorganizes under section 123A.45, 123A.46, or 123A.48 may appoint
representatives to the joint powers board who will serve on the joint powers board for two years
after the effective date of the reorganization if authorized in the agreement establishing the joint
powers board to govern the cooperative facility. These representatives shall have the same powers
as representatives of any other school district under the joint powers agreement.
    Subd. 4. District procedures. A joint powers board of a district established under
subdivision 2 or a school board of a reorganized district that intends to apply for a grant must
adopt a resolution stating the proposed costs of the project, the purpose for which the costs are
to be incurred, and an estimate of the dates when the facilities for which the grant is requested
will be contracted for and completed. Applications for the state grants must be accompanied by
(a) a copy of the resolution, (b) a certificate by the clerk and treasurer of the joint powers board
showing the current outstanding indebtedness of each member district, and (c) a certificate by
the county auditor of each county in which a portion of the joint powers district lies showing the
information in the auditor's official records that is required to be used in computing the debt limit
of the district under section 475.53, subdivision 4. The clerk's and treasurer's certificate must
show, as to each outstanding bond issue of each member district, the amount originally issued, the
purpose for which issued, the date of issue, the amount remaining unpaid as of the date of the
resolution, and the interest rates and due dates and amounts of principal thereon. Applications
and necessary data must be in the form prescribed by the commissioner. Applications must be
received by the commissioner by September 1 of an odd-numbered year. When an application is
received, the commissioner shall obtain from the commissioner of revenue, and from the Public
Utilities Commission when required, the information in their official records that is required to be
used in computing the debt limit of the joint powers district under section 475.53, subdivision 4.
    Subd. 5. Award of grants. By November 1 of the odd-numbered year, the commissioner
shall examine and consider all applications for grants, and if any district is found not qualified, the
commissioner shall promptly notify that board.
    A grant award is subject to verification by the district as specified in subdivision 8. A grant
award for a new facility must not be made until the site of the facility has been determined. A
grant award to remodel or improve an existing facility must not be made until the districts have
reorganized. If the total amount of the approved applications exceeds the amount that is or can be
made available, the commissioner shall first award grants to districts that will close at least one
existing school building, and then, to the extent funds remain, allot the available amount equally
between any other approved applicant districts. The commissioner shall promptly certify to each
qualified district the amount, if any, of the grant awarded to it.
    Subd. 6. Collocation grant. A group of districts that receives a grant for a new facility
under subdivision 4 is also eligible to receive an additional grant in the amount of $1,000,000.
To receive the additional grant, the group of districts must develop a plan under subdivision 2,
paragraph (d), that provides for the location of a significant number of noneducational student and
community service programs within the cooperative facility.
    Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant for a new
facility under subdivision 5, the joint powers board must submit the question of authorizing the
borrowing of funds for the facility to the voters of the joint powers district at a special election,
which may be held in conjunction with the general election of the school board members of the
member districts. The question submitted must state the total amount of funding needed from all
sources. A majority of those voting in the affirmative on the question is sufficient to authorize
the joint powers board to accept the grant and to issue the bonds on public sale according to
chapter 475. The clerk of the joint powers board must certify the vote of the bond election to
the commissioner. If the question is approved by the voters, the commissioner shall notify the
approved applicant districts that the grant amount certified under subdivision 5 is available and
appropriated for payment under this subdivision. If a majority of those voting on the question do
not vote in the affirmative, the grant must be canceled.
    Subd. 8. Contract. Each grant must be evidenced by a contract between the board and
the state acting through the commissioner. The contract obligates the state to pay to the board
an amount computed according to subdivision 5, and according to a schedule, and terms and
conditions acceptable to the commissioner of finance.
    Subd. 9. Consolidation. A group of districts that operates a cooperative facility that was
acquired, constructed, remodeled, or improved under this section and implements consolidation
proceedings according to section 123A.48, may propose a temporary school board structure in the
petition or resolution required under section 123A.48, subdivision 2. The districts may propose
the number of existing school board members of each district to become members of the board
of the consolidated district and a method to gradually reduce the membership to six or seven.
The proposal must be approved, disapproved, or modified by the commissioner. The election
requirements of section 123A.48, subdivision 20, do not apply to a proposal approved by the
state board. Elections conducted after the effective date of the consolidation are subject to the
Minnesota Election Law.
History: 1987 c 400 s 36,59; 1988 c 718 art 8 s 13-15; 1989 c 300 art 2 s 2-4,13; 1989
c 329 art 6 s 38; 1990 c 562 art 6 s 27; 1992 c 409 s 2; 1992 c 499 art 5 s 10-12; 1993 c 224
art 5 s 18-20; 1994 c 643 s 55-61; 1Sp1995 c 2 art 1 s 32-34; 1Sp1995 c 3 art 16 s 13; 1998 c
397 art 7 s 68-73,164; art 11 s 3; 1999 c 241 art 4 s 29; 2000 c 464 art 3 s 9; 2000 c 489 art 5 s
19,27; 2004 c 294 art 5 s 4; 2005 c 56 s 1; 2007 c 146 art 4 s 4
123A.444 LEVY FOR SEVERANCE PAY.
A joint powers board established under section 123A.443 may make a levy to provide
severance pay and early retirement incentives under section 122A.48, for any teacher as defined
under section 122A.40, subdivision 1, who is placed on unrequested leave as a result of the
cooperative secondary facility agreement. A joint powers board making a levy must certify
to each participating district tax levies sufficient to raise the amount necessary to provide the
district's portion of severance pay and early retirement incentives. The tax levy certified to each
district must be expressed as a local tax rate, that, when applied to the adjusted net tax capacity
of all of the participating districts raises the amount necessary to provide severance pay and
early retirement incentives. Each participating school district must include the levy in the next
tax roll which it shall certify to the county auditor, and must remit the collections of the levy
to the joint powers board.
History: 1988 c 718 art 8 s 16; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1Sp1989
c 1 art 2 s 11; 1998 c 397 art 7 s 74,164; art 11 s 3; 1999 c 241 art 4 s 29; 2000 c 464 art 3 s
9; 2000 c 489 art 5 s 19,27
123A.445 TRANSPORTATION.
The joint powers board representing the districts that have entered into a joint powers
agreement under section 123A.443, subdivision 2, or the boards of the districts that are contiguous
to the districts that have entered into a joint powers agreement, may transport nonresident pupils
without charge between a school within the district and a point within a district that has entered
into a joint powers agreement chosen by the pupil on a route traveled by a bus from the district.
History: 1989 c 329 art 6 s 39; 1998 c 397 art 7 s 164; art 11 s 3; 1999 c 241 art 4 s 29;
2000 c 464 art 3 s 9; 2000 c 489 art 5 s 19,27
123A.446 STATE BOND AUTHORIZATION.
To provide money for the cooperative secondary facilities grant program, the commissioner
of finance, upon the request of the commissioner of education, shall issue and sell bonds of the
state up to the amount of $14,000,000 in the manner, upon the terms and with the effect prescribed
by sections 16A.631 to 16A.675 and the Minnesota Constitution, article XI, sections 4 to 7.
History: 1987 c 400 s 37; 1988 c 718 art 8 s 17; 1989 c 300 art 2 s 5; 1Sp1995 c 3 art
16 s 13; 1998 c 397 art 7 s 164; 1999 c 241 art 4 s 29; 2000 c 464 art 3 s 9; 2000 c 489 art
5 s 19,27; 2003 c 130 s 12

REALIGNING DISTRICTS

123A.45 DETACHMENT AND ANNEXATION OF LAND.
    Subdivision 1. Detachment and annexation. 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 paragraph (b),
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 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 paragraphs (a) and (b), any land proposed for detachment from and annexation to
the same district in another pending petition.
    Subd. 2. Petition. The petition must contain:
(a) A correct description of the area proposed for detachment and annexation, including
supporting data regarding location and title to land to establish that the land is adjoining a district.
(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, 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. Before the hearing, the consent of the board of the district in which the area
proposed for detachment lies must be endorsed on the petition.
(d) An identification of the district to which annexation is sought.
(e) Other information the petitioners may desire to affix.
(f) An acknowledgment by the petitioner.
(g) A description of whether bonded indebtedness will be allocated according to subdivision
6, paragraph (b) or (c).
    Subd. 3. Filing petition. The petition must be filed with the auditor who shall present it to
the county board at its next meeting. At the meeting, the county board must fix a time and place
for hearing the petition. The hearing shall be not more than 60 nor less than ten days from the
date of the meeting. The auditor shall 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 in which 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 must receive and hear
any evidence for or against the petition. The hearing may be adjourned from time to time.
    Subd. 4. Order. Within six months of the filing of the petition, the county board must issue
its order either granting or denying the petition. If any of the land area described in the petition is
included in a plat for consolidation or combination which has been approved by the commissioner,
then 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, paragraph (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 have a deferred effective date not later than July 1 immediately following its issuance.
If the petition is 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. Modification of records. Upon receipt of the order, the commissioner shall 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. Taxable property. (a) Upon the effective date of the order, the detachment and
annexation is effected. The bonded indebtedness must be assigned to the detached and annexed
land under either paragraph (b) or (c).
(b) Unless specified separately under paragraph (c), all taxable property in the area so
detached and annexed remains taxable for payment of any school purpose obligations already
authorized by or outstanding on the effective date of the order against the district from which
detached. The order does not relieve such property from the obligation of any bonded debt already
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 district obligations authorized on or subsequent to the
effective date of the order by the district to which annexation is made.
(c) Alternatively, if the school board of the district in which the area is proposed for
detachment and the school board of the district in which the area is proposed for annexation agree,
all taxable property in the area detached and annexed shall be taxable by the school district to
which the property is annexed. Detached and annexed property is relieved from the obligation of
any bonded debt already incurred by the district in which the area is detached and is obligated for
any bonded debt already incurred by the district to which the area is annexed.
History: 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; 1998 c 397 art 5 s 5,104;
1Sp2001 c 5 art 3 s 5,6
123A.455 REALIGNING SPLIT RESIDENTIAL PARCELS.
    Subdivision 1. Definitions. "Split residential property parcel" means a parcel of real estate
that is located within the boundaries of more than one school district and that is classified as
residential property under:
(1) section 273.13, subdivision 22, paragraph (a) or (b);
(2) section 273.13, subdivision 25, paragraph (b), clause (1); or
(3) section 273.13, subdivision 25, paragraph (c), clause (1).
    Subd. 2. Petition. The owner of a split residential property parcel may petition the auditor of
the county where the split parcel is located to transfer that part into the adjoining school district so
the entire property will be located in the same school district. The petition must contain:
(1) a correct description of the split parcel to be affected by the transfer including supporting
data on location and title to the land;
(2) a list of the school districts in which the split parcels currently lie;
(3) the school district into which the petitioner desires to have the whole split parcel
transferred; and
(4) the district of attendance of any students currently residing on the property.
    Subd. 3. Auditor's order. Within 60 days of receipt of the petition, the auditor of the county
in which the petition was filed under subdivision 2 shall issue an order to transfer the affected
parcel to the district determined by the county board. Orders issued on or before July 1 will be
effective for taxes payable in the following year. The auditor must notify the affected school
districts and the commissioner of the change in school district boundaries.
    Subd. 4. Commissioner. The commissioner shall modify the records of school district
boundaries to conform to the order.
    Subd. 5. Taxable property. Upon the effective date of the order, the whole split property
parcel is transferred into a single school district. Beginning in the next subsequent taxes payable
year, all taxable property in the whole split parcel is:
(1) relieved of all school district taxes from the district in which the parcel is no longer
located; and
(2) subject to all school district taxes in the district in which the whole split parcel is now
located.
History: 2003 c 127 art 2 s 1
123A.46 DISSOLUTION AND ATTACHMENT.
    Subdivision 1. Dissolution. Any district may be dissolved and the territory attached to other
districts by proceeding in accordance with this section.
    Subd. 2. Instituting proceedings. Proceedings under this section may be instituted by:
(1) 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 123A.60 to 123A.72;
(2) 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;
(3) 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. Resolution. A resolution adopted pursuant to subdivision 2, clause (1), 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. Petition. A petition executed pursuant to subdivision 2, clause (2), shall be filed
with the auditor. The petition must 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 must 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. Certification executed pursuant to subdivision 2, clause (3), must be
filed with the auditor. The certification must 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 must 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. Hearing. When a hearing is ordered under this section, the auditor shall give
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 any part of
the district proposed for dissolution or any adjoining district lies in another county, the auditor
shall mail notice of the hearing to the auditor of each county so situated upon establishment
of the hearing date.
    Subd. 7. When no order may be issued. 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 commissioner 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. 8. Information to county auditor. (a) Before the day of a hearing ordered pursuant
to this section, each district adjoining the district proposed for dissolution must 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. 9. When order may be issued. 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:
(1) dismissing the proceedings; or
(2) 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 (2) the order is a final order, unless an election on the
order is required pursuant to subdivision 11.
    Subd. 10. Order for dissolution. (a) An order issued under subdivision 9, clause (2), must
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; 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 any part of the district to be dissolved or any district to which the order attaches territory
lies, and upon the commissioner.
    Subd. 11. Voter approval required. If the proceedings were instituted by petition, under
subdivision 2, clause (2), or by election, under subdivision 2, clause (3), 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 12. 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. Election date. 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 for the election and serving a copy
of the order 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
post and publish notice of the election according to law. Upon receipt of the notice, the board
shall conduct the election.
    Subd. 13. Election results. The board must certify the results of the election 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. 14. Bonded debt. The bonded debt of a district dissolved under provisions of this
section must be paid according to levies made for that debt 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. 15. Current assets and liabilities. 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 must pass to the district to which it
is attached, except as provided in section 123A.75. 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 123A.75.
    Subd. 16. Levies. (a) In the year prior to the effective date of the dissolution of a district,
the board of a district to which all of the dissolving district is to be attached may adopt a
resolution directing the 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 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.
History: 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; 1998 c 397 art 5 s 6-16,104; art 11
s 3; 1998 c 398 art 5 s 55; 2003 c 130 s 12
123A.48 CONSOLIDATION.
    Subdivision 1. Proceeding to consolidate. 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. Resolution. (a) Upon a resolution of a 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 less, the county auditor of the
county which contains the greatest land area of the proposed new district shall prepare a plat. The
resolution or petition must 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 18;
(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 126C.17, subdivision 9, or its predecessor provision, be combined as provided in
section 123A.73, subdivision 4 or 5, 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
20, 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 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
123A.443 may also propose a temporary board structure as specified in section 123A.443,
subdivision 9
.
If a county auditor receives more than one request for a plat and the requests involve parts of
identical districts, the auditor shall 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 must 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. 3. Designated county auditor duties. 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. 4. Orderly reduction plan. As part of the resolution required by subdivision 2, the
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 may
shorten any or all terms of incumbent board members to achieve the orderly reduction. The plan
must be submitted to the secretary of state for review and comment.
    Subd. 5. Supporting statement. The county auditor shall prepare a supporting statement to
accompany the plat. The statement must 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 commissioner 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. 6. County auditor to submit plat. 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. 7. County auditor to notify county board; restriction on county board action.
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. 8. Commissioner duties. The commissioner shall, upon receipt of a plat, 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 public meeting 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. The public meeting 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 after a minimum of 20 days, but no more than 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. 9. Notice to district board. Upon receipt of an approved plat, the county auditor shall
notify the board of any district, all or part of whose land is included in the proposed new district.
    Subd. 10. District board adoption of proposed plat. 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, must, 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. If any school board is unable to obtain a majority of
its members' votes to accept or reject the plat and plan, a petition of residents of the district
unable to obtain a majority of votes equal to 20 percent of the votes cast in the last school district
general election in that district may be submitted to the county auditor requesting a public vote
to accept or reject the plat and plan. The vote shall be scheduled on the next available election
date. The county auditor shall notify the commissioner of the scheduled vote, conduct the election
in that district and certify the results of the election to the commissioner. Other affected school
boards that approve the plat and plan may choose to hold an election. If elections are conducted
in each affected school district, results shall be separate and a majority vote to approve the plat
and plan must be reached in each of the affected districts. If the plat and plan are rejected by the
voters, a new plat and plan cannot be submitted, except by school board resolution in a district
where the plat and plan were rejected, until January 1 of the year following the next school
district general election.
    Subd. 11. Multiple districts; approval. 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 publish notice of its action at least once in its official newspaper. If all of the 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 13, 14, and 15.
    Subd. 12. Approval by residents. 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 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. 13. Notice of election. Upon an election becoming callable under provisions of
subdivision 11 or 12, the board shall give ten days' posted notice of election in the area in which
the election is to be held and also if a newspaper is published in the area, one weeks' published
notice shall be given. The notice must specify the time, place and purpose of the election.
    Subd. 14. Election. The 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 board shall also provide official ballots which
must be used exclusively and shall be in the following form:
For consolidation ....
Against consolidation ....
The board must appoint election judges who shall act as clerks of election. The ballots and
results must be certified to the board who shall canvass and tabulate the total vote cast for and
against the proposal.
    Subd. 15. Effective date. 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 board must, 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 must be July 1 of the year determined by the 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 board must 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 district affected.
    Subd. 16. Identification number. Upon receipt of the order creating a new district, the
commissioner shall, 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. 17. Distribution of district assets and liabilities. 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 123A.75. 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. 18. Bonded debt. (a) As of the effective date of the consolidation, the bonded debt
of all component districts must be paid according to the plan for consolidation proposed in the
approved plat and according to this subdivision.
(b) If the plan for consolidation so provides, the bonded debt of all component districts must
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.
(c) 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.
(d) 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.
(e) The county auditor shall make the apportionment required under paragraphs (c) and (d)
and incorporate the apportionment 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. 19. Bonds; election. The board of the newly created district, when constituted as
provided in Minnesota Statutes 1990, section 122.23, 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
Minnesota Statutes 1990, section 122.23, subdivision 17, 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 123A.49, no bonds shall be delivered by the newly created district to purchasers unless:
(1) 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
(2) if an appeal is taken, the order is affirmed and the time for petitioning for further review
has expired. Notwithstanding the pendency of the appeal, 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, then 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, and the bonds must 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 must 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. 20. Board election; duties. (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 15 was issued, to hold 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 a newspaper is published in the proposed new district, one
weeks' published notice shall be given. The notice must 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 must 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 must 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 to a certificate 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
the schools 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 properly maintain 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) The newly elected board of the enlarged district has the immediate duty, after the
members 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. On the effective date of the consolidation, the newly elected
board must assume the full duties of the care, management and control of the new enlarged
district. The board of the new enlarged district must 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 123A.75. The obligations of the new board to nonlicensed employees employed by
component districts is governed by subdivision 21.
    Subd. 21. 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 must provide,
to transferred nonlicensed employees, open enrollment in all insurance plans with no limit on
preexisting conditions.
    Subd. 22. Attachment of land to consolidating districts. 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. 23. Retirement incentives. (a) For consolidations effective July 1, 1994, and
thereafter, a 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 122A.46;
(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 district or who enter into an extended leave of absence as a result of the consolidation. The
board may determine the staff to whom the incentives are offered. Unilateral implementation of
this section by a 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 must 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 board may offer these incentives beginning on the day that the consolidation is
approved under subdivision 14 or, if an election is not called under subdivision 11 or 12, 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.
History: 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; 1998 c 397 art 5 s 17-33,104; art 11 s 3; 1998 c 398 art 5 s 55; art 6 s
14,15; 1999 c 241 art 6 s 2; 2000 c 254 s 7; 2003 c 130 s 12
123A.485 CONSOLIDATION TRANSITION REVENUE.
    Subdivision 1. Eligibility and use. A district that has been reorganized after June 30, 1994,
under section 123A.48 is eligible for consolidation transition revenue. Revenue is equal to the
sum of aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
may only be used according to this section. Revenue must be used for the following purposes and
may be distributed among these purposes at the discretion of the district:
(1) to offer early retirement incentives as provided by section 123A.48, subdivision 23;
(2) to reduce operating debt as defined in section 123B.82;
(3) to enhance learning opportunities for students in the reorganized district; and
(4) for other costs incurred in the reorganization.
Revenue received and utilized under clause (3) or (4) may be expended for operating,
facilities, and/or equipment.
    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 times the number of resident
pupil units in the newly created district in the year of consolidation and $100 times the number of
resident pupil units in the first year following the year of consolidation. The number of pupil units
used to calculate aid in either year shall not exceed 1,000 for districts consolidating July 1, 1994,
and 1,500 for districts consolidating July 1, 1995, and thereafter.
(b) If the total appropriation for consolidation transition aid for any fiscal year, plus any
amount transferred under section 127A.41, subdivision 8, is insufficient to pay all districts the full
amount of aid earned, the department must first pay the districts in the first year following the year
of consolidation the full amount of aid earned and distribute any remaining funds to the newly
created districts in the first year of consolidation.
    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs of the
district under section 123A.48, subdivision 23, the district may levy the difference over a period
of time not to exceed three years.
    Subd. 4. New districts. If a district consolidates with another district that has received aid
under section 123A.39, subdivision 3, or 123A.485 for a combination or consolidation taking
effect within six years of the effective date of the new consolidation, only the pupil units in the
district or districts not previously reorganized must be counted for aid purposes under subdivision
2. If two or more districts consolidate and all districts received aid under subdivision 2 for a
consolidation taking effect within six years of the effective date of the new consolidation, only
one quarter of the pupil units in the newly created district must be used to determine aid under
subdivision 2.
History: 1994 c 647 art 6 s 23; 1Sp1995 c 3 art 6 s 10-12; art 16 s 13; 1998 c 397 art 7
s 39-41,164; art 11 s 3; 2000 c 254 s 8; 2000 c 489 art 5 s 1
123A.488 CONSOLIDATION; INSTRUCTION BY NONRESIDENTIAL DISTRICT.
    Subdivision 1. Aid payments in case of alteration of boundaries. Where two or more
districts hereafter unite the state aid shall continue to be paid for the remainder of the school year
in which the union was completed as the state aids were paid to the individual districts prior to
the union.
    Subd. 2. Tuition. Except as otherwise provided in law, every district that provides for the
instruction of a pupil without a disability in a nonresident district shall pay to the nonresident
district the actual cost of the instruction, excluding transportation costs. Tuition for a nonresident
pupil with a disability must be determined according to section 125A.11.
The resident district shall also pay to the nonresident district, for capital expenditures and
debt service, $10 per resident pupil unit in average daily membership for each nonresident pupil
unit. However, a nonresident district may include in its tuition, for capital expenditures and debt
service, an amount per resident pupil unit in average daily membership based on the amount that
the average expenditure for capital expenditures and debt service determined by dividing such
annual expenditure by the total number of pupil units in average daily membership in the district
exceeds $10 per resident pupil unit. If the nonresident district has no capital expenditures or debt
service, it may use the money for any purpose for which it is authorized to spend money.
    Subd. 3. Tuition as agreed. Notwithstanding subdivision 2, a resident district may pay a
nonresident district the amount for tuition that is agreed upon by the districts.
History: Ex1959 c 71 art 5 s 18; 1963 c 530 s 1; 1969 c 513 s 1; 1975 c 432 s 23; 1988 c
486 s 26,27; 1988 c 718 art 7 s 28; 1991 c 265 art 3 s 38; 1998 c 397 art 4 s 51; art 11 s 3
123A.49 APPEALS.
    Subdivision 1. Grounds for appeal from final order. Any district or any person aggrieved
by final order of the county board or final order of the county auditor, made pursuant to the
provisions of this code, may appeal from such final order to the district court upon the following
grounds:
(1) That the county board or the county auditor had no jurisdiction to act;
(2) That the county board or the county auditor exceeded its jurisdiction;
(3) That the action appealed from is arbitrary, fraudulent, capricious or oppressive or in
unreasonable disregard of the best interest of the territory affected;
(4) That the order of action appealed from is based upon an erroneous theory of law.
An appeal from a final order of a county board or the county auditor shall be taken by serving
a notice of appeal upon the county auditor. An appeal from a final order of a county board or a
county auditor shall be taken to the district court in the county of the board or auditor. Notice of
appeal must be served within 30 days of the issuance of the order appealed from and shall be
accompanied by a corporate surety bond in the amount of $250, conditioned for the payment of
all costs taxed against appellant on such appeal. The notice of appeal shall be filed with the court
administrator of the district court and noticed for hearing in the manner provided for the trial of
civil actions by Minnesota Rules of Civil Procedure.
In an appeal from an order of a county auditor effecting a consolidation the action of the
commissioner approving the plat is reviewable and the commissioner may be called by either
party as a witness in such appeal proceedings and may be examined under the Rules of Civil
Procedure relating to the cross-examination of adverse parties.
    Subd. 2. Affected school district or person may intervene. Any school district or any
person affected by final order of the county board or final order of the county auditor shall be
permitted to intervene in appeals under this section as a party respondent.
    Subd. 3. Appeal. An appeal lies from the district court in accordance with the Rules of
Civil Appellate Procedure.
    Subd. 4. Administrative remedies for aggrieved school district or person. Unless
otherwise provided by law, any school district or any person aggrieved by a final order of the
commissioner made pursuant to provisions of this code may proceed under the provisions
of sections 14.57 to 14.69.
History: Ex1959 c 71 art 8 s 25; 1975 c 162 s 37; 1976 c 239 s 36; 1978 c 764 s 90-92;
1982 c 424 s 130; 1983 c 247 s 59; 1Sp1986 c 3 art 1 s 82; 1987 c 384 art 2 s 1; 1998 c 397
art 5 s 104; 1998 c 398 art 5 s 55
123A.50 PLATS.
The auditor shall keep in the auditor's office books containing a correct plat and description
of each district, whether wholly or partly in the auditor's county. The auditor shall submit to the
state department a description and the revised plats showing changes made in district boundaries
within 60 days of such changes.
History: Ex1959 c 71 art 4 s 28; 1975 c 162 s 41; 1978 c 616 s 6; 1986 c 444; 1998 c
397 art 6 s 124

COMMON, INDEPENDENT, AND

SPECIAL DISTRICTS

123A.55 CLASSES, NUMBER.
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 assigned a number by the
commissioner so that its title will be .......... School District No. ......
History: Ex1959 c 71 art 3 s 2; 1974 c 406 s 11; 1998 c 397 art 5 s 3,104; 2004 c 294 art 5 s 5
123A.56 ASSIGNMENT OF IDENTIFICATION NUMBERS.
    Subdivision 1. Assignment. The commissioner shall, by order, assign an identification
number to each district. The assignment shall be made so that each classified district has an
exclusive identification number.
    Subd. 2. Notification. Upon making the assignment of an identification number, the
commissioner shall 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. Legal identification. The legal identification of the district shall become the
assigned identification number. All records, correspondence, reports and references to the district
must thereafter refer to the district by its proper title as assigned.
    Subd. 4. Use of numbers. A number assigned to a district under section 123A.55 or under
any prior law, must 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 shall assign
unused numbers as identification. When numbered districts are dissolved, the numbers assigned
to them will not be reassigned to any other district.
History: 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;
1998 c 397 art 5 s 4,104; art 11 s 3
123A.58 COMMON DISTRICT TO INDEPENDENT DISTRICT.
    Subdivision 1. Vote to change organization of district. 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. Board election. 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
the next May 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. Identification number. If the organization of the district is changed from common
to independent at the meeting, the clerk shall notify the auditor and the commissioner.
Upon receipt of such notification, the commissioner shall assign a new identification number
to the district and shall notify the auditor and the clerk of the district thereof.
    Subd. 4. Change in district classification. 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. Clerk to record district identification number. 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.
History: 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; 1998 c 397 art 5 s 45,46,104
123A.60 REMAINING DISTRICTS, ACTION OF COUNTY BOARD; ELECTION.
    Subdivision 1. Dissolution. Any organized 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, shall
hereby be dissolved as of the date the district ceases to maintain a classified school. Any such
district not maintaining a classified school must 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 123A.46 for the attachment of dissolved districts.
    Subd. 2. Special election. 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 must 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. Order; asset and liability transfer. The county auditor shall certify the results of
the election to the county board. Within 45 days after such election, the county board must issue
its order dissolving the district. The order must also attach the dissolved district to a proper district
as determined by the county board, and a copy of such order must be filed with the commissioner.
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.
History: 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; 1998 c 397 art 5 s 47,104; art 11 s 3
123A.61 PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.
Section 123A.60 shall not apply to any 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 120A.22.
History: 1963 c 547 s 4; 1978 c 706 s 10; 1989 c 209 art 2 s 1; 1998 c 397 art 5 s 48,104;
art 11 s 3
123A.62 BORDER DISTRICTS; CONTINUED OPERATION; FRANCONIA.
    Subdivision 1. Border districts. 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 districts in Wisconsin may continue to operate
as common school districts notwithstanding that any of such districts do not maintain classified
schools. Such districts are not subject to the terms and provisions of sections 123A.60 to 123A.72.
    Subd. 2. Continued operation. The provisions of subdivision 1 shall remain in effect as
long as the district does not discontinue the practice of education for their district as described in
subdivision 1.
History: 1965 c 739 s 1; 1969 c 541 s 1; 1975 c 162 s 15; 1976 c 2 s 57; 1998 c 397 art 5
s 49,104; art 11 s 3
123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.
Each district must maintain classified elementary and secondary schools, grades 1 through
12, unless the district is exempt according to section 123A.61 or 123A.62, has made an agreement
with another district or districts as provided in sections 123A.30, 123A.32, or sections 123A.35
to 123A.43, or 123A.17, subdivision 7, or has received a grant under sections 123A.441 to
123A.446. A district that has an agreement according to sections 123A.35 to 123A.43 or 123A.32
must operate a school with the number of grades required by those sections. A district that has
an agreement according to section 123A.30 or 123A.17, subdivision 7, or has received a grant
under sections 123A.441 to 123A.446 must operate a school for the grades not included in the
agreement, but not fewer than three grades.
History: 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; 1998 c 397 art 5 s 50,104; art 11 s 3
123A.65 PHASE OUT OF DISSOLVED DISTRICT.
The board of each district so dissolved shall continue to maintain schools 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 properly maintain schools for the period they may
be in session prior to the attachment.
History: 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; 1998 c 397 art 5 s 51,104
123A.66 PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.
Upon notice and hearing, as provided in section 123A.46 for the attachment of dissolved
districts, all territory of school districts dissolved by sections 123A.64 to 123A.72 and all area
of the state not in a district maintaining classified elementary and secondary schools must 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 123A.30 or 123A.32.
History: 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; 1998 c 397 art 5 s 52,104; art 11 s 3
123A.67 ALLOCATION OF ASSETS AND LIABILITIES; LEVY.
    Subdivision 1. Title to property. Title to all the property, real and personal, of any district
dissolved under the provisions of sections 123A.64 to 123A.72 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. Taxable property. 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 already
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. The county auditor shall make this
apportionment and incorporate the apportionment 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. Reimbursement; special levy. (a) Liabilities of a dissolved district existing at the
time of the attachment other than bonded debt within the purview of subdivision 2 must 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. 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 district.
History: 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; 1998 c 397 art 5 s 53,54,104; art 11 s 3
123A.68 OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.
The board of the district maintaining a secondary school to which district is attached
territory of districts discontinued by sections 123A.64 to 123A.72 must 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.
History: 1967 c 833 s 6; 1998 c 397 art 5 s 55,104; art 11 s 3
123A.69 SPECIAL SCHOOL DISTRICTS, APPLICATION; MINNEAPOLIS AND
SOUTH ST. PAUL.
When provisions of sections 123A.64 to 123A.72 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 123A.64 to 123A.72. 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 123A.64 to 123A.72 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 123A.64 to 123A.72.
History: 1967 c 833 s 7; 1998 c 397 art 5 s 56,104; art 11 s 3
123A.70 PRIVATE SCHOOLS; PRINSBURG.
Sections 123A.64 to 123A.68 shall not apply to any common school district in which is
located any existing private school maintaining elementary and secondary education for 50 percent
of the eligible pupils within the district and complying with the requirements of section 120A.22.
History: 1967 c 833 s 8; 1975 c 162 s 41; 1989 c 209 art 2 s 1; 1998 c 397 art 5 s 57,104;
art 11 s 3; 2005 c 8 s 1
123A.71 APPEAL.
The appeal provisions of section 123A.49 shall be applicable only after the county board
has issued its final order of attachment under section 123A.46.
History: 1967 c 833 s 11; 1975 c 162 s 20; 1998 c 397 art 5 s 104; art 11 s 3
123A.72 SEVERABILITY.
The provisions of sections 123A.64 to 123A.72 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 123A.64 to 123A.72.
History: 1967 c 833 s 12; 1998 c 397 art 5 s 104; art 11 s 3
123A.73 LEVY LIMITATIONS OF REORGANIZED DISTRICTS.
    Subdivision 1. Definitions. The terms defined in chapters 120B, 122A, 123A, 123B, 124D,
125A, 126C, and 127A, have the same meaning when they are used in this section, unless
otherwise clearly indicated.
    Subd. 2. 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 123A.60 or 123A.64 to 123A.72, the authorization for any referendum revenue
previously approved by the voters of the dissolved district in that district pursuant to section
126C.17, subdivision 9, 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. 3. 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 123A.46, the authorization for all referendum revenues previously approved by the
voters of all affected districts for those districts pursuant to section 126C.17, subdivision 9, 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:
The referendum revenue shall be the revenue per resident marginal cost pupil unit times the
number of resident marginal cost pupil units in the enlarged district. 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 126C.17, subdivision 9.
    Subd. 4. Consolidation; maximum authorized referendum revenues. As of the effective
date of a consolidation pursuant to section 123A.48, 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 126C.17, subdivision 9, or its predecessor provision shall be
recalculated as provided in this subdivision. The referendum revenue authorization for the newly
created district shall be the revenue per resident marginal cost 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, unless the referendum revenue
authorization of the newly created district is subsequently modified pursuant to section 126C.17,
subdivision 9
. 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.
    Subd. 5. Alternative method. As of the effective date of a consolidation pursuant to
section 123A.48, 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 126C.17, subdivision 9, 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 resident marginal cost pupil unit provided in the plan for consolidation, but may
not exceed the allowance per resident marginal cost 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. 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. The referendum revenue authorization for the newly created district
may be modified pursuant to section 126C.17, subdivision 9.
    Subd. 6. Discontinued referendum revenue. If the plan for consolidation provides for
discontinuance of referendum revenue previously approved by voters of the component districts
pursuant to section 126C.17, subdivision 9, or its predecessor provision, the newly created district
must not receive referendum revenue unless the voters of the newly created district authorize
referendum revenue pursuant to section 126C.17, subdivision 9.
    Subd. 7.[Repealed, 1Sp2003 c 9 art 1 s 54]
    Subd. 8. 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
123A, 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 123B.81.
    Subd. 9. Reorganization operating debt levies. (a) A district that receives revenue under
section 123A.39, subdivision 3, for cooperation or has combined according to sections 123A.35 to
123A.43 may levy to eliminate reorganization operating debt as defined in section 123B.82, 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 123A.35 to 123A.43, 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 123A.46 or 123A.48 may levy to
eliminate reorganization operating debt as defined in section 123B.82, 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. 10.[Repealed, 1Sp2003 c 9 art 1 s 54]
    Subd. 11.[Repealed, 1Sp2003 c 9 art 1 s 54]
    Subd. 12. Levy for severance pay or early retirement incentives. The board of a newly
created or enlarged district to which part or all of a dissolved district was attached according to
section 123A.46 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 approves the incentives and the amount to be levied. The amount may be
levied over a period of up to five years and must 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 board of the
newly created or enlarged district.
History: 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; 1998 c 397 art 5 s
58-60,104; art 11 s 3; 1Sp2003 c 9 art 1 s 3-5; 2007 c 146 art 11 s 2
123A.74 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 123A.46, 123A.48, or sections 123A.35 to 123A.43,
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 must be recalculated
annually by the department to be equal to the required debt service levy plus an additional amount.
The additional amount must 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 123A.46, 123A.48, or sections 123A.35 to 123A.43, 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.
History: 1991 c 265 art 6 s 17; 1Sp1995 c 3 art 16 s 13; 1998 c 397 art 5 s 61,104; art 11 s 3
123A.75 EMPLOYEES OF REORGANIZED DISTRICTS.
    Subdivision 1. 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 board and the exclusive representative of teachers in
each district involved in the consolidation or dissolution and attachment may negotiate a plan for
assigning teachers to each newly created or enlarged district.
    Subd. 2. 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
1 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 122A.40 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
122A.40, subdivision 11, on the basis of a combined seniority list of all teachers assigned to it.
    Subd. 3. Interim contractual agreements. (a) Until a successor contract is executed between
the new board and the exclusive representative of the teachers of the new district, the 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 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 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 board and the exclusive representative.
    Subd. 4. Contracts; termination; tenure. Except as provided in this section, the provisions
of section 122A.40 or 122A.41 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 2, clause
(c), and the provisions of section 122A.40, subdivision 11, each district must be considered to
have started school each year on the same date.
History: 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; 1998 c 397 art 5 s 62-64,104; art 11 s 3
123A.76 EXPENSES OF TRANSITION.
The board of a district to which a dissolved district is attached pursuant to section 123A.46,
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 124D.22, 126C.40 to 126C.45, and 126C.48, 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.
History: 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; 1998 c 397 art 5 s 104; art 11 s 3
123A.77 SURPLUS COUNTY SCHOOL TAX FUNDS; DISTRIBUTION.
When, by reason of reorganization of districts, there is a surplus in the county treasury to
the credit of the county school tax fund on account of an excessive tax levy already made, and
when there is no need for the surplus, the county treasurer shall pay the surplus to the reorganized
district upon the order of the county board.
History: 1973 c 157 s 1; 1998 c 397 art 5 s 99,104
123A.78 JOINT POWERS AGREEMENTS FOR FACILITIES.
    Subdivision 1. Instructional facilities. Any group of districts may form a joint powers
district under section 471.59 representing all participating districts to build or acquire a facility to
be used for instructional purposes. The joint powers board must submit the project for review and
comment under section 123B.71. The joint powers board must hold a hearing on the proposal.
The joint powers district must submit the question of authorizing the borrowing of funds for the
project to the voters of the joint powers district at a special election. The question submitted shall
state the total amount of funding needed from all sources. The joint powers board may issue the
bonds according to chapter 475 and certify the levy required by section 475.61 only if a majority
of those voting on the question vote in the affirmative and only after the school boards of each
member district have adopted a resolution pledging the full faith and credit of that district. The
resolution shall irrevocably commit that district to pay a proportionate share, based on pupil
units, of any debt levy shortages that, together with other funds available, would allow the joint
powers board to pay the principal and interest on the obligations. The district's payment of its
proportionate share of the shortfall shall be made from the district's capital expenditure fund. The
clerk of the joint powers board must certify the vote of the bond election to the commissioner.
    Subd. 2. Shared facilities. A group of governmental units may form a joint powers district
under section 471.59 representing all participating units to build or acquire a facility. The joint
powers board must submit the project for review and comment under section 123B.71. The joint
powers board must hold a hearing on the proposal. The joint powers district must submit the
question of authorizing the borrowing of funds for the project to the voters of the joint powers
district at a special election. The question submitted shall state the total amount of funding needed
from all sources. The joint powers board may issue the bonds according to chapter 475 and certify
the levy required by section 475.61 only if a majority of those voting on the question vote in the
affirmative and only after the boards of each member unit have adopted a resolution pledging
the full faith and credit of that unit. The resolution must irrevocably commit that unit to pay an
agreed upon share of any debt levy shortages that, together with other funds available, would
allow the joint powers board to pay the principal and interest on the obligations. The clerk of the
joint powers board must certify the vote of the bond election to the commissioner.
History: 1990 c 562 art 11 s 1; 1991 c 265 art 5 s 4; 1Sp1995 c 3 art 16 s 13; 1998 c
397 art 5 s 1,104; art 11 s 3
123A.79 MEETINGS OF JOINT POWERS BOARD.
(a) Notwithstanding any law to the contrary, a joint powers board established under section
123A.443 or 123A.78, 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 chapter 13D.
History: 1990 c 562 art 6 s 7; 1998 c 397 art 5 s 104; art 11 s 3