Bill
SF 5124
Authorizes splitting ISD 363 into two districts, allocating assets, debts, and governance, with separate boards and elections after state approval.
Purpose
- Authorizes the Board of Koochiching County to divide Independent School District (ISD) No. 363, South Koochiching, into two separate districts through a formal statutory process.
Who/What is affected
- Independent School District No. 363 (South Koochiching) would be divided into two newly created independent school districts.
- The division would determine how territory, assets, liabilities, real and personal property, bonded debt, and energy loans are allocated between the resulting districts.
- Election administration and board composition would shift to the newly created districts, with separate school boards and elections to fill six director seats.
- The existing ISD No. 363 board would continue to operate until the effective date of the division.
Key Provisions and Changes
- Initiation of Proceedings (Subdivision 1)
- Proceedings to divide may be initiated by a petition signed by at least a specified percentage of eligible voters of ISD No. 363 and addressed to the county board.
- Petition Requirements (Subdivision 2)
- Petition must be filed with the county auditor by July 1, 2027.
- Petition must include: intent to pursue division, identification of the district, proposed reasons or advisory recommendations for territory disposition, and affiant verification by eligible voters.
- County board will schedule a hearing within 20 to 60 days after petition presentation.
- Notice and Hearing (Subdivisions 3)
- Auditor must provide 10 days’ posted notice in the district, 1 week in the county, and 10 days’ mailed notice to the district clerk and the Commissioner of Education.
- County Board Order for Division (Subdivision 4-5)
- The county board may issue an order to dismiss or to provide for division within 90 days of the original hearing date.
- An order for division must describe the division, outstanding debt and obligations, an effective date (July 1 of an odd-numbered year unless agreed otherwise with the teachers’ bargaining unit), and other preferred terms.
- The order requires consultation with the Commissioner of Education and must be approved by the Commissioner.
- School District Approval or Voter Approval (Subdivision 6-7)
- The existing ISD board has 60 days to approve or disapprove the division order.
- If approved by the existing board, no voter election is required.
- If disapproved or if no action is taken, the question must go to voters in the district to be divided.
- A separate election is held in the proposed district to approve the division order; a majority of votes is required for approval.
- If approved, the order becomes final; if disapproved, proceedings are dismissed.
- Assets, Liabilities, and Bonded Debt (Sections 8-9)
- The Minnesota Department of Education (noted here as Commissioner of Education) issues an order within 30 days for distribution of assets and liabilities from the preexisting district to the new districts.
- Title to real and personal property located in the newly created district transfers to that district on the effective date.
- Taxable property in the newly created district remains liable for outstanding bonded debt of the preexisting district in proportion to net tax capacity.
- School Board Elections and Duties (Section 10)
- A special election to elect a six-member board (terms of four years) is scheduled within 30-60 days after the division’s effective date.
- A three-member/three-member staggered term arrangement is described for the first board terms.
- Procedures for candidacy filings, ballots, polling locations, and certification are outlined.
- The existing district continues operating until the division’s effective date.
- The new boards plan for ongoing maintenance, employment contracts, and other operational needs for the coming year.
- Labor and Commissioner Roles (Subdivisions 11-13)
- The existing district’s teachers and nonlicensed employees may negotiate reassignment plans with the respective new districts.
- The Commissioner of Education may adjust compensatory aid data and other aid amounts for the divided districts using the current fiscal year data.
Effective Date
- The act becomes effective the day after final enactment.
Timeline Highlights
- Petition deadline: July 1, 2027.
- Hearing: within 20-60 days after petition presentation.
- Division order and potential voter approvals: contingent on hearing outcomes and board actions, with finalization subject to Commissioner of Education approval.
- Special elections for new boards: to be scheduled within 30-60 days after division’s effective date.
Notes
- The bill introduces a structured, layered process combining board approvals and potential voter referenda.
- It ensures representation, debt responsibilities, and asset distribution are addressed as part of the division.
Compiled from official sources — confirm details with the bill’s official record.
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