1.1                          A bill for an act
  1.2             relating to education; authorizing school districts to 
  1.3             enter into agreements for building needs for up to 
  1.4             five years at a time; amending Minnesota Statutes 
  1.5             1994, section 123.35, subdivision 19a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 123.35, 
  1.8   subdivision 19a, is amended to read: 
  1.9      Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
  1.10  SUPPORT.] (a) No school district shall be required by any type 
  1.11  of formal or informal agreement except an agreement to provide 
  1.12  building space according to paragraph (f), including a joint 
  1.13  powers agreement, or membership in any cooperative unit defined 
  1.14  in subdivision 19b, paragraph (d), to participate in or provide 
  1.15  financial support for the purposes of the agreement for a time 
  1.16  period in excess of one fiscal year, or the time period set 
  1.17  forth in this subdivision.  Any agreement, part of an agreement, 
  1.18  or other type of requirement to the contrary is void. 
  1.19     (b) This subdivision shall not affect the continued 
  1.20  liability of a school district for its share of bonded 
  1.21  indebtedness or other debt incurred as a result of any agreement 
  1.22  before July 1, 1993.  The school district is liable only until 
  1.23  the obligation or debt is discharged and only according to the 
  1.24  payment schedule in effect on July 1, 1993, except that the 
  1.25  payment schedule may be altered for the purpose of restructuring 
  2.1   debt or refunding bonds outstanding on July 1, 1993, if the 
  2.2   annual payments of the school district are not increased and if 
  2.3   the total obligation of the school district for its share of 
  2.4   outstanding bonds or other debt is not increased. 
  2.5      (c) To cease participating in or providing financial 
  2.6   support for any of the services or activities relating to the 
  2.7   agreement or to terminate participation in the agreement, the 
  2.8   school board shall adopt a resolution and notify other parties 
  2.9   to the agreement of its decision on or before February 1 of any 
  2.10  year.  The cessation or withdrawal shall be effective June 30 of 
  2.11  the same year except that for a member of an education district 
  2.12  organized under sections 122.91 to 122.95 or an intermediate 
  2.13  district organized under chapter 136D, cessation or withdrawal 
  2.14  shall be effective June 30 of the following fiscal year.  At the 
  2.15  option of the school board, cessation or withdrawal may be 
  2.16  effective June 30 of the following fiscal year for a district 
  2.17  participating in any type of agreement.  
  2.18     (d) Before issuing bonds or incurring other debt, the 
  2.19  governing body responsible for implementing the agreement shall 
  2.20  adopt a resolution proposing to issue bonds or incur other debt 
  2.21  and the proposed financial effect of the bonds or other debt 
  2.22  upon each participating district.  The resolution shall be 
  2.23  adopted within a time sufficient to allow the school board to 
  2.24  adopt a resolution within the time permitted by this paragraph 
  2.25  and to comply with the statutory deadlines set forth in sections 
  2.26  122.895, 125.12, and 125.17.  The governing body responsible for 
  2.27  implementing the agreement shall notify each participating 
  2.28  school board of the contents of the resolution.  Within 120 days 
  2.29  of receiving the resolution of the governing body, the school 
  2.30  board of the participating district shall adopt a resolution 
  2.31  stating: 
  2.32     (1) its concurrence with issuing bonds or incurring other 
  2.33  debt; 
  2.34     (2) its intention to cease participating in or providing 
  2.35  financial support for the service or activity related to the 
  2.36  bonds or other debt; or 
  3.1      (3) its intention to terminate participation in the 
  3.2   agreement. 
  3.3      A school board adopting a resolution according to clause 
  3.4   (1) is liable for its share of bonded indebtedness or other debt 
  3.5   as proposed by the governing body implementing the agreement.  A 
  3.6   school board adopting a resolution according to clause (2) is 
  3.7   not liable for the bonded indebtedness or other debt, as 
  3.8   proposed by the governing body, related to the services or 
  3.9   activities in which the district ceases participating or 
  3.10  providing financial support.  A school board adopting a 
  3.11  resolution according to clause (3) is not liable for the bonded 
  3.12  indebtedness or other debt proposed by the governing body 
  3.13  implementing the agreement. 
  3.14     (e) After July 1, 1993, a district is liable according to 
  3.15  paragraph (d) for its share of bonded indebtedness or other debt 
  3.16  incurred by the governing body implementing the agreement to the 
  3.17  extent that the bonds or other debt are directly related to the 
  3.18  services or activities in which the district participates or for 
  3.19  which the district provides financial support.  The district has 
  3.20  continued liability only until the obligation or debt is 
  3.21  discharged and only according to the payment schedule in effect 
  3.22  at the time the governing body implementing the agreement 
  3.23  provides notice to the school board, except that the payment 
  3.24  schedule may be altered for the purpose of refunding the 
  3.25  outstanding bonds or restructuring other debt if the annual 
  3.26  payments of the district are not increased and if the total 
  3.27  obligation of the district for the outstanding bonds or other 
  3.28  debt is not increased. 
  3.29     (f) A school district that is a member of a cooperative 
  3.30  unit as defined in subdivision 19b, paragraph (d), may obligate 
  3.31  itself to participate in and provide financial support for an 
  3.32  agreement to provide school building space for a term not to 
  3.33  exceed five years with a cooperative unit. 
  3.34     Sec. 2.  [EFFECTIVE DATE.] 
  3.35     Section 1 is effective July 1, 1996.