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HF 4998

Koochiching County board authorized to divide Independent School District, No. 363, South Koochiching.

2025-2026 Regular Session Introduced by Roger Skraba

Authorizes Koochiching County to divide Independent School District 363 (South Koochiching) into two separate districts, with timelines, governance, funding, and potential voter ap

Introduction and first reading, referred to Education Policy
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Bill Summary · HF 4998

Summary of HF 4998 (2025-2026) – Minnesota

Topic: Authorization for Koochiching County board to divide Independent School District No. 363 (South Koochiching)

Jurisdiction: Minnesota House of Representatives, Education Policy Committee

Date Introduced: 2026 (Authored by Rep. Skraba)

Status: First reading and referred to Committee on Education Policy

1) Purpose and Intent

  • The bill authorizes the Board of Koochiching County to initiate and oversee the division of Independent School District No. 363, known as South Koochiching.
  • It establishes a procedural framework for petitioning, hearings, orders of division, potential voter approval, and the subsequent creation and governance of two separate school districts resulting from the division.
  • The overarching goal is to enable a geographic realignment of educational administration and resources within the county, subject to approval processes and ministerial coordination with the Minnesota Department of Education.

2) Key Provisions and Changes

  • Subdivision 1: Initiating Proceedings

    • Division proceedings may be instituted by a petition executed by at least a specified percentage of eligible voters in the district proposed for division and addressed to the county board of Koochiching County.
    • Petition timing: must be filed with the county auditor before July 1, 2027.

  • Subdivision 2: Petition Requirements

    • Petition must state intent to institute division proceedings, identify the district, and provide reasons and advisory disposition recommendations (non-binding).
    • Petition circulators must attach an affidavit confirming eligibility to vote and signature in the circulator’s presence.
    • Auditor presents petition to county board, which must set a hearing date (between 20 and 60 days after the meeting).

  • Subdivision 3: Hearing and Notice

    • Auditor provides specified notices: 10 days’ posted notice in the proposed district, 1 week in the county, 10 days’ mailed notice to the district clerk and the commissioner of education.

  • Subdivision 4: Order Timeline

    • The county board may issue an order within 90 days of the hearing dates:
    • Dismiss the proceedings, or
    • Provide for the division of the district.
    • Failure to issue an order within the time frame results in dismissal.

  • Subdivision 5: Contents of Division Order

    • Must describe the division, include a description of the territory, outline outstanding debt and loans to be allocated, set an effective date (July 1 of an odd-numbered year, unless a signed written agreement with the teachers’ exclusive representative allows July 1 of an even-numbered year), and include other desired information.
    • Requires consultation with the Commissioner of Education; the order must be approved by the Commissioner.

  • Subdivision 6: School District Approval or Voter Approval

    • Existing district board has 60 days to approve or disapprove the order by resolution.
    • If approved, no voter referendum is required; if disapproved or no action, the question may go to a voter referendum under Subdivision 7.

  • Subdivision 7: Voter Approval Process

    • If voter approval is required, a district-wide special election is held within the division district.
    • A simple majority of votes cast is required to approve the order.
    • Election mechanics: timing, notices, candidate filing, ballots, and certification procedures are outlined.

  • Subdivision 8: Assets and Liabilities

    • The Commissioner of Education will determine the distribution of the preexisting district’s assets and liabilities (both real and personal) between the newly created districts.

  • Subdivision 9: Bonded Debt

    • Taxable property in the new district will be taxed for the payment of inherited bonded debt proportionate to the net tax capacity of the portion of the new district relative to the old district at the time of division.

  • Subdivision 10: School Board Elections and Duties

    • A special election will be held to elect a six-member board (terms: four years) for each divided district.
    • Initial term structure: three members with terms expiring after the first general election more than six months after the election of the first board, and three members expiring after the second such election.
    • The new boards assume duties upon qualification, including planning for the next school year, negotiations for personnel, and management of assets and contracts.

  • Subdivision 11-12: Negotiations for Staffing

    • The existing district and its exclusive representatives for teachers and nonlicensed employees may negotiate assignments of staff to the divided districts.

  • Subdivision 13: Commissioner Duties

    • Compensatory aid and other aid amounts for the divided districts may be recalculated using current-year data, as needed.

  • Section 2: Effective Date

    • The act becomes effective the day after final enactment.

3) Affected Parties and Impacts

  • Primary: Students, families, and staff within Independent School District No. 363 (South Koochiching) in Koochiching County.
  • County Government: Koochiching County Board empowered to initiate and manage the division process, issue orders, and coordinate with the Commissioner of Education.
  • Minnesota Department of Education: Must approve division orders and assist in asset/liability distribution and funding calculations.
  • Existing District Board: Oversees current operations during transition; may approve or trigger voter-approved division.
  • Future Districts: Two newly created independent school districts resulting from the division; will have separate school boards, governance, assets, liabilities, debt, and funding needs.

4) Procedural and Timeline Aspects

  • Petition window: Must be filed by July 1, 2027.
  • Hearing: Scheduled 20–60 days after the county board sets it.
  • Initial order: May be issued within 90 days of the hearing dates; otherwise dismissed.
  • Approval paths:
    • Board approval: No voter vote required.
    • Disapproval or lack of action: Voter referendum required.
  • Voter election: If held, requires a majority YES vote to approve the division.
  • Effective date: July 1 of an odd-numbered year (default) unless a written agreement with teachers’ exclusive representative sets July 1 of an even-numbered year.
  • Transition actions: Asset/liability distribution, debt apportionment, and establishment of six-seat school boards in the two new districts; staffing assignments to be negotiated.

This summary covers the bill’s core aims, major provisions, affected parties, and key procedural steps and dates. If you’d like, I can provide a side-by-side comparison with current Minnesota division statutes or a brief risk/impact assessment for local stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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