1.1                          A bill for an act 
  1.2             relating to education finance; creating an alternative 
  1.3             method for allocating bonded indebtedness in the case 
  1.4             of detachment and annexation of land; amending 
  1.5             Minnesota Statutes 1998, section 123A.45, subdivisions 
  1.6             2 and 6. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 123A.45, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [PETITION.] The petition must contain: 
  1.11     (a) A correct description of the area proposed for 
  1.12  detachment and annexation, including supporting data regarding 
  1.13  location and title to land to establish that the land is 
  1.14  adjoining a district. 
  1.15     (b) The reasons for the proposed change with facts showing 
  1.16  that the granting of the petition will not reduce the size of 
  1.17  any district to less than four sections, unless the district is 
  1.18  not operating a school within the district. 
  1.19     (c) Consent to the petition, if, at the time of the filing 
  1.20  of the petition, any part of the area proposed for detachment is 
  1.21  part of a district which maintains and operates a secondary 
  1.22  school within the district.  Before the hearing, the consent of 
  1.23  the board of the district in which the area proposed for 
  1.24  detachment lies must be endorsed on the petition. 
  1.25     (d) An identification of the district to which annexation 
  1.26  is sought. 
  2.1      (e) Other information the petitioners may desire to affix. 
  2.2      (f) An acknowledgment by the petitioner. 
  2.3      (g) A description of whether bonded indebtedness will be 
  2.4   allocated according to subdivision 6, paragraph (b) or (c). 
  2.5      Sec. 2.  Minnesota Statutes 1998, section 123A.45, 
  2.6   subdivision 6, is amended to read: 
  2.7      Subd. 6.  [TAXABLE PROPERTY.] (a) Upon the effective date 
  2.8   of the order, the detachment and annexation is effected.  The 
  2.9   bonded indebtedness must be assigned to the detached and annexed 
  2.10  land under either paragraph (b) or (c). 
  2.11     (b) Unless specified separately under paragraph (c), all 
  2.12  taxable property in the area so detached and annexed remains 
  2.13  taxable for payment of any school purpose obligations already 
  2.14  authorized by or outstanding on the effective date of the order 
  2.15  against the district from which detached.  The order does not 
  2.16  relieve such property from the obligation of any bonded debt 
  2.17  already incurred to which it was subject prior to the order.  
  2.18  All taxable property in the area so detached and annexed is 
  2.19  taxable for payment of any district obligations authorized on or 
  2.20  subsequent to the effective date of the order by the district to 
  2.21  which annexation is made. 
  2.22     (c) Alternatively, if the school board of the district in 
  2.23  which the area is proposed for detachment and the school board 
  2.24  of the district in which the area is proposed for annexation 
  2.25  agree, all taxable property in the area detached and annexed 
  2.26  shall be taxable by the school district to which the property is 
  2.27  annexed.  Detached and annexed property is relieved from the 
  2.28  obligation of any bonded debt already incurred by the district 
  2.29  in which the area is detached and is obligated for any bonded 
  2.30  debt already incurred by the district to which the area is 
  2.31  annexed. 
  2.32     Sec. 3.  [PRIOR ATTACHMENT.] 
  2.33     Any agreement for detachment and annexation approved after 
  2.34  January 1, 1999, and prior to July 1, 2000, may be amended by 
  2.35  adoption of a resolution adopted according to Minnesota 
  2.36  Statutes, section 123A.45, subdivision 6, paragraph (c). 
  3.1      Sec. 4.  [EFFECTIVE DATE.] 
  3.2      Sections 1 to 3 are effective retroactive to January 1, 
  3.3   1999, for detachment and annexations requests approved by a 
  3.4   county board on or after that date.