Bill Text: MN SF786 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Local government detachment from hospital districts alternative method and criteria

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-14 - Referred to Local Government and Elections [SF786 Detail]

Download: Minnesota-2011-SF786-Introduced.html

1.1A bill for an act
1.2relating to local government; providing an alternative method of detachment
1.3for hospital districts;amending Minnesota Statutes 2010, section 447.38,
1.4subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2010, section 447.38, subdivision 2, is amended to read:
1.7    Subd. 2. Detachment of city or town; same procedure; criteria. (a) A city or
1.8town included in the hospital district may be detached from it by the same procedure
1.9provided for dissolution of the district. following the procedures in this subdivision.
1.10The city or town seeking to be detached from the hospital district must submit a petition
1.11stating the grounds for detachment, signed by an authorized officer of the governing body
1.12of the city or town seeking detachment from the hospital district, and accompanied by a
1.13resolution in support of detachment adopted by the governing body of the city or town.
1.14(b) The petition must be submitted first to the hospital district board. The board must
1.15hold a hearing on the petition and evaluate it using the factors in paragraph (d) and issue
1.16an order granting or denying the petition.
1.17(c) If the hospital district board denies the petition, the city or town may file
1.18the petition, along with the board's order, with the Office of Administrative Hearings,
1.19providing a copy to the hospital district board. The Office of Administrative Hearings
1.20must hold a hearing and evaluate the petition using the factors in paragraph (d).
1.21(d) Factors for evaluating whether to grant or deny a petition for detachment are:
1.22(1) the benefit or harm to the city or town and its taxpayers if the petition is granted;
1.23(2) the benefit or harm to the hospital district if the petition is granted;
2.1(3) whether the city or town is unique in comparison to other governmental units
2.2in the district;
2.3(4) whether there has been a change in circumstances since formation of the district;
2.4and
2.5(5) whether the petitioning city or town and its taxpayers have been or are treated
2.6equitably in payment to the district in comparison to any benefit conferred.
2.7The hospital district or Office of Administrative Hearings must order detachment of the
2.8petitioning city or town if it finds that there has been a significant change in circumstances
2.9which makes it inequitable for the petitioning city or town to remain in the district under
2.10the current circumstances or if it determines that the taxes levied in the city or town are
2.11disproportionate to the benefits received.
2.12(e) On detachment, all taxable property within the detached area remains subject
2.13to taxation for any existing bonded indebtedness of the district to the same extent as it
2.14would have been if not detached. The property remains subject to taxation for any other
2.15existing indebtedness of the district incurred for any purpose beneficial to the area to the
2.16extent the hospital board or Office of Administrative Hearings finds just and equitable, to
2.17be specified in the order for detachment. The proper officers shall levy further taxes on
2.18the property accordingly.
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