This bill authorizes the Koochiching County Board to initiate proceedings to divide Independent School District No. 363, South Koochiching. The process begins with a petition from at least a specified percentage of eligible voters in the district, which must be filed by July 1, 2027. The petition must include a statement of intent, identification of the district, and reasons for the division, along with an affidavit from the circulators. Following the petition, the county board is required to hold a hearing with proper notice, and within 90 days, it can either dismiss the proceedings or issue an order for division. The order must detail the division, outstanding debts, and an effective date, which is typically set for July 1 of an odd-numbered year unless otherwise agreed upon.

If the county board approves the order, the existing school district board has 60 days to approve or disapprove it. If disapproved, the matter goes to a vote among the district's residents. The bill also outlines the distribution of assets and liabilities, the taxation of property for bonded debts, and the election of a new school board for the divided districts. Additionally, it allows for negotiations regarding teacher and nonlicensed employee assignments and specifies that compensatory aid for the divided districts will be calculated based on current fiscal year data. The provisions of this bill will take effect the day after final enactment.