1.1 	A bill for an act
1.2 	relating to education; authorizing an election to form two separate school districts 
1.3 	from the area currently within Independent School District No. 728, Elk River.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. VOTER APPROVAL REQUIRED TO SPLIT THE ELK RIVER 
1.6 	SCHOOL DISTRICT.
 1.7 		Subdivision 1.Election required. An election must be held on the first Tuesday 
1.8 	after the first Monday in November 2006 proposing the division of Independent School 
1.9 	District No. 728, Elk River, into two component school districts, with the first component 
1.10 	district consisting of the district's territory currently within the boundaries of Sherburne, 
1.11 	Anoka, and Isanti Counties and the other component district consisting of the district's 
1.12 	territory currently within the boundaries of Hennepin and Wright Counties.
1.13 		Subd. 2.Notification. The board of Independent School District No. 728, Elk 
1.14 	River, must prepare and deliver by first class mail at least 15 days but no more than 30 
1.15 	days before the day of the referendum to approve the split of the Elk River school district 
1.16 	to each taxpayer a notice of the proposed new district boundaries.  The board need not 
1.17 	mail more than one notice to any taxpayer.  For the purpose of giving mailed notice under 
1.18 	this subdivision, owners must be those shown to be owners on the records of the county 
1.19 	auditor or, in any county where tax statements are mailed by the county treasurer, on the 
1.20 	records of the county treasurer.  Every property owner whose name does not appear on 
1.21 	the records of the county auditor or the county treasurer is deemed to have waived this 
1.22 	mailed notice unless the owner has requested in writing that the county auditor or county 
1.23 	treasurer, as the case may be, include the name on the records for this purpose.
2.1 		Subd. 3.Election question. The school board of Independent School District 
2.2 	No. 728, Elk River, must submit to the voters of the district a question proposing to 
2.3 	split the school district into two component districts.  The ballot may contain a textual 
2.4 	portion with information describing the proposed split of the district and a question stating 
2.5 	substantially the following:
2.6 	"Shall Independent School District No. 728, Elk River, be split into two school 
2.7 	districts with the territory in Hennepin and Wright Counties comprising one district and 
2.8 	the territory in Sherburne, Anoka, and Isanti Counties comprising another district? 

2.9	Yes .......
	
2.10	No ......."
	
2.11 	If a majority of all votes cast on the question at the election approve the split of the 
2.12 	school district, the district shall be split according to the provisions of sections 2 to 9.
2.13 		Subd. 4.Certification. The school board must certify the results of the election 
2.14 	under this section to the Department of Education and the county auditors of Hennepin, 
2.15 	Wright, Sherburne, Anoka, and Isanti Counties.

2.16 	EFFECTIVE DATE. This section is effective the day following final enactment. 

2.17 	Sec. 2. DISTRICT BOUNDARIES; ASSIGNMENT OF AREA.
 2.18 		Subdivision 1.Sherburne, Anoka, and Isanti counties. Upon successful passage 
2.19 	of the referendum in section 1, the commissioner of education shall issue an order 
2.20 	detaching and classifying all of the area of the current Independent School District No. 
2.21 	728, Elk River, that is located in Sherburne, Anoka, or Isanti County as a new independent 
2.22 	school district and assign the district an identification number as of July 1, 2008.
2.23 		Subd. 2.Hennepin and Wright counties. Upon successful passage of the 
2.24 	referendum in section 1, the commissioner of education shall issue an order detaching and 
2.25 	classifying all of the area of the current Independent School District No. 728, Elk River, 
2.26 	that is located in Hennepin or Wright County as a new independent school district and 
2.27 	assign the district an identification number as of July 1, 2008.
2.28 	
2.29 	
2.30 	
2.31 	
Subd. 3.Commissioner's records. Upon successful completion of the referendum authorized in section 1, the commissioner of education shall modify the records and any plats, petitions, and proceedings involving the former school district and the newly created school districts to conform to the conditions of this act.
2.32 	EFFECTIVE DATE. This section is effective July 1, 2006.

2.33 	Sec. 3. GOVERNANCE.
 3.1 		Subdivision 1.School board size. Each of the new school districts created by 
3.2 	section 1 initially shall be governed by a board of directors consisting of seven members.
3.3 		Subd. 2.School board elections and terms. The board of directors for each new 
3.4 	school district described in section 2 shall be elected according to Minnesota Statutes, 
3.5 	chapter 205A, at an election held for that purpose at the November 2007 general election. 
3.6 	Four of the initial board members must be elected for a term of four years and three of 
3.7 	the initial members shall be elected to a term of two years.
3.8 		Subd. 3.Start of term. The terms of the newly elected board members must begin 
3.9 	on the first Monday in January 2008, and continue until a successor qualifies.
3.10 		Subd. 4.Subsequent terms. After the initial election required under subdivision 2, 
3.11 	the terms of all members shall be governed under Minnesota Statutes, section 123B.09.
3.12 		Subd. 5.Serving on two boards. Notwithstanding any law to the contrary, an 
3.13 	individual may serve on both the school board of Independent School District No. 728, 
3.14 	Elk River, and on the board of one of the newly created school districts.
3.15 		Subd. 6.End of terms. Notwithstanding any law to the contrary, the terms of the 
3.16 	board members of Independent School District No. 728, Elk River, extend until July 1, 
3.17 	2008, at which point the terms end and the board is dissolved.

3.18 	EFFECTIVE DATE. This section is effective upon successful passage of the 
3.19 	referendum authorized in section 1.

3.20 	Sec. 4. TRANSITION ACTIVITIES.
 3.21 		Subdivision 1.Existing board. The care, management, and control of Independent 
3.22 	School District No. 728, Elk River, remains with its board until July 1, 2008. 
3.23 	Notwithstanding any law to the contrary, the board may enter into one-year contracts with 
3.24 	its employees for the 2007-2008 school year.
3.25 		Subd. 2.New board activities. The newly elected boards under section 3 may begin 
3.26 	meeting after the first Monday in January 2008.  The boards may plan for operation of their 
3.27 	districts and issue letters of intent to hire employees.  Upon specific written authority of 
3.28 	the board of Independent School District No. 728, Elk River, each board may separately 
3.29 	join with the board of Independent School District No. 728, Elk River, and jointly enter 
3.30 	into contracts for the operation of the newly formed school district prior to July 1, 2008.

3.31 	EFFECTIVE DATE. This section is effective upon successful passage of the 
3.32 	referendum authorized in section 1.

3.33 	Sec. 5. DISTRIBUTION OF ASSETS AND LIABILITIES.
 4.1 		Subdivision 1.Order of commissioner. Under the detachments authorized in 
4.2 	section 2, the commissioner of education shall issue an order for the distribution of all 
4.3 	assets and liabilities, real and personal, and the legally valid and enforceable claims and 
4.4 	contract obligations of the former Independent School District No. 728, Elk River, that are 
4.5 	necessary for the new school districts to operate.
4.6 		Subd. 2.Real property. The commissioner shall determine the value of all real 
4.7 	property.  The commissioner's order must transfer the interests in all real property to the 
4.8 	newly created school districts.  The real property must be assigned based upon the borders 
4.9 	of the newly created school districts.  If the commissioner determines that the value of 
4.10 	the real property substantially favors one district or the other, the commissioner may 
4.11 	include a dollar amount as a claim against the district receiving the property, and the claim 
4.12 	shall be paid and enforced in the manner provided by law for the payment of judgments 
4.13 	against a district.

4.14 	EFFECTIVE DATE. This section is effective upon successful passage of the 
4.15 	referendum authorized in section 1.

4.16 	Sec. 6. TAX LIABILITY FOR EXISTING BONDED DEBT.
 4.17 	All taxable property in the areas so detached remains taxable for payment of any 
4.18 	school purpose obligations already authorized by or outstanding on July 1, 2008.  The 
4.19 	commissioner's order does not relieve the taxable property from the obligation of any 
4.20 	bonded debt already incurred to which it was subject prior to the order.  All taxable 
4.21 	property in the areas included in the newly created districts is taxable for payment of any 
4.22 	district obligations of its new district authorized on or subsequent to July 1, 2008.

4.23 	EFFECTIVE DATE. This section is effective upon successful passage of the 
4.24 	referendum authorized in section 1.

4.25 	Sec. 7. EMPLOYEES.
 4.26 		Subdivision 1.Licensed employees. The obligations of the newly created school 
4.27 	districts created in section 2 to licensed employees are governed by Minnesota Statutes, 
4.28 	section 123A.75, except that the commissioner of education shall assign each teacher 
4.29 	employed by Independent School District No. 728, Elk River, to the newly created 
4.30 	districts based upon the location of the building where the teacher was employed during 
4.31 	the 2006-2007 school year.  Any licensed employee who was not assigned to a building 
4.32 	during the 2006-2007 school year must be assigned according to Minnesota Statutes, 
4.33 	section 123A.75.
5.1 		Subd. 2.Nonlicensed employees. All other employees not included in subdivision 
5.2 	1 may apply for employment to either of the newly created school boards by February 
5.3 	15, 2008.  Employees who have not received a letter of intent to hire from either of the 
5.4 	boards of the newly created districts by April 15, 2008, may place their names on a roster 
5.5 	maintained by the commissioner of education.  On June 15, 2008, the commissioner 
5.6 	shall assign all of the employees on the roster to unfilled positions in the newly created 
5.7 	school districts in order of seniority.  All of the rights and obligations of the nonlicensed 
5.8 	employees must continue in the same manner as before July 1, 2008.

5.9 	EFFECTIVE DATE. This section is effective upon the successful passage of the 
5.10 	referendum authorized in section 1.

5.11 	Sec. 8. ENROLLMENT OPTIONS.
 5.12 	Regardless of the new districts' borders, a student who is enrolled in Independent 
5.13 	School District No. 728, Elk River, during the 2006-2007 school year may continue to 
5.14 	attend the school in which that student was enrolled until the student completes the last 
5.15 	grade offered by that school.  Funding for a student under this section is governed by 
5.16 	Minnesota Statutes, section 124D.03.

5.17 	EFFECTIVE DATE. This section is effective upon the successful passage of the 
5.18 	referendum authorized in section 1.

5.19 	Sec. 9. SCHOOL FINANCES; OPERATING REFERENDUM.
 5.20 	The operating referendum amounts of Independent School District No. 728, Elk 
5.21 	River, continue in the amount and for the timelines approved by the voters in each of the 
5.22 	newly formed component school districts.

5.23 	EFFECTIVE DATE. This section is effective upon the successful passage of the 
5.24 	referendum authorized in section 1.