1.1                          A bill for an act 
  1.2             relating to public finance; providing for public 
  1.3             finance instrumentalities and instruments; 
  1.4             authorizing, validating, expanding, limiting, and 
  1.5             clarifying public financing and economic development 
  1.6             structures, instruments, and procedures for local 
  1.7             public entities; amending Minnesota Statutes 2002, 
  1.8             sections 373.45, subdivision 1; 373.47, subdivision 1; 
  1.9             376.009; 376.55, subdivision 3, by adding a 
  1.10            subdivision; 376.56, subdivision 3; 469.103, 
  1.11            subdivision 2; 469.1813, subdivision 8; 473.39, by 
  1.12            adding a subdivision; 473.898, subdivision 3; 
  1.13            474A.061, subdivision 1; 475.58, subdivision 3b; Laws 
  1.14            1967, chapter 558, section 1, subdivision 5, as 
  1.15            amended; Laws 1989, chapter 211, section 8, 
  1.16            subdivision 2, as amended; Laws 1989, chapter 211, 
  1.17            section 8, subdivision 4, as amended; proposing coding 
  1.18            for new law in Minnesota Statutes, chapter 469. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20                             ARTICLE 1
  1.21     Section 1.  Minnesota Statutes 2002, section 373.45, 
  1.22  subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
  1.24  the following terms have the meanings given. 
  1.25     (b) "Authority" means the Minnesota public facilities 
  1.26  authority. 
  1.27     (c) "Commissioner" means the commissioner of finance. 
  1.28     (d) "Debt obligation" means a general obligation bond 
  1.29  issued by a county, or a bond payable from a county lease 
  1.30  obligation under section 641.24, to provide funds for the 
  1.31  construction of: 
  1.32     (1) jails; 
  2.1      (2) correctional facilities; 
  2.2      (3) law enforcement facilities; 
  2.3      (4) social services and human services facilities; or 
  2.4      (5) solid waste facilities. 
  2.5      Sec. 2.  Minnesota Statutes 2002, section 373.47, 
  2.6   subdivision 1, is amended to read: 
  2.7      Subdivision 1.  [AUTHORITY TO INCUR DEBT.] (a) Subject to 
  2.8   prior approval by the public safety radio system planning 
  2.9   committee under section 473.907, the governing body of a county 
  2.10  may finance the cost of designing, constructing, and acquiring 
  2.11  public safety communication system infrastructure and equipment 
  2.12  for use on the statewide, shared public safety radio system by 
  2.13  issuing: 
  2.14     (1) capital improvement bonds under section 373.40, as if 
  2.15  the infrastructure and equipment qualified as a "capital 
  2.16  improvement" within the meaning of section 373.40, subdivision 
  2.17  1, paragraph (b); and 
  2.18     (2) capital notes under the provisions of section 373.01, 
  2.19  subdivision 3, as if the equipment qualified as "capital 
  2.20  equipment" within the meaning of section 373.01, subdivision 3. 
  2.21     (b) For purposes of this section, "county" means the 
  2.22  following counties:  Anoka, Benton, Carver, Chisago, Dakota, 
  2.23  Dodge, Fillmore, Freeborn, Goodhue, Hennepin, Houston, Isanti, 
  2.24  Mower, Olmsted, Ramsey, Rice, Scott, Sherburne, Steele, Wabasha, 
  2.25  Washington, Wright, and Winona. 
  2.26     (c) The authority to incur debt under this section is not 
  2.27  effective until July 1, 2003, for the following counties:  
  2.28  Benton, Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, 
  2.29  Olmsted, Rice, Sherburne, Steele, Wabasha, Wright, and Winona. 
  2.30     Sec. 3.  Minnesota Statutes 2002, section 376.009, is 
  2.31  amended to read: 
  2.32     376.009 [COUNTY HOSPITAL DEFINED; MAY HAVE MANY BUILDINGS, 
  2.33  SITES.] 
  2.34     For the purposes of sections 376.01 to 376.06, "county 
  2.35  hospital" means any hospital owned or operated by a county which 
  2.36  may consist of any number of buildings at one location or any 
  3.1   number of buildings at different locations within the 
  3.2   county.  The county board of any county that has not established 
  3.3   a county hospital may by resolution authorize a statutory or 
  3.4   home rule charter city and its city council to exercise the 
  3.5   powers of a county and the county board under sections 376.01 to 
  3.6   376.07, in which case references in sections 376.01 to 376.07 to 
  3.7   "county" and "county board" refer to the city so designated and 
  3.8   its governing body, respectively. 
  3.9      Sec. 4.  Minnesota Statutes 2002, section 376.55, 
  3.10  subdivision 3, is amended to read: 
  3.11     Subd. 3.  [FINANCING.] The county board may transfer 
  3.12  surplus funds from any fund except the road and bridge, sinking 
  3.13  or drainage ditch funds for the purpose of 
  3.14  establishing, acquiring, maintaining, enlarging, or adding to a 
  3.15  county nursing home.  When surplus funds are not available for 
  3.16  transfer, a county board may issue bonds to pay the cost of 
  3.17  establishing, acquiring, equipping, furnishing, enlarging, or 
  3.18  adding to a county nursing home, subject to section 376.56. 
  3.19     Sec. 5.  Minnesota Statutes 2002, section 376.55, is 
  3.20  amended by adding a subdivision to read: 
  3.21     Subd. 7.  [CITY POWERS.] The county board of any county 
  3.22  that has not established a nursing home may by resolution 
  3.23  authorize a statutory or home rule charter city to exercise the 
  3.24  powers of a county under sections 376.55 to 376.60.  A city so 
  3.25  designated may exercise within its boundaries all the powers of 
  3.26  a county under sections 376.55 to 376.60. 
  3.27     Sec. 6.  Minnesota Statutes 2002, section 376.56, 
  3.28  subdivision 3, is amended to read: 
  3.29     Subd. 3.  [CHAPTER 475 BONDS.] Bonds issued under section 
  3.30  376.55, subdivision 3, may be general obligations of the county 
  3.31  and may be issued and sold, and taxes levied for their payment 
  3.32  as provided under chapter 475.  No election shall be required to 
  3.33  authorize the bond issue for acquiring, improving, remodeling, 
  3.34  or replacing an existing nursing home without increasing the 
  3.35  total number of accommodations for residents in all nursing 
  3.36  homes in the county.  The revenues of the nursing home shall 
  4.1   also be pledged for the payment of the bonds and for any 
  4.2   interest and premium.  Part of the proceeds may be deposited in 
  4.3   the debt service fund for the issue, to capitalize interest and 
  4.4   create a reserve to reduce or eliminate the tax otherwise 
  4.5   required by section 475.61 to be levied before issuing the 
  4.6   bonds.  The remaining proceeds from the sale of the bonds and 
  4.7   any surplus funds transferred under section 376.55, subdivision 
  4.8   3 must be credited to and deposited in the county nursing home 
  4.9   building fund of the county in which the nursing home is located.
  4.10     Sec. 7.  [469.0772] [KOOCHICHING COUNTY; PORT AUTHORITY.] 
  4.11     Subdivision 1.  [AUTHORITY TO ESTABLISH.] The governing 
  4.12  body of the county of Koochiching may establish a port authority 
  4.13  that has the same powers as a port authority established under 
  4.14  section 469.049.  If the county establishes a port authority, 
  4.15  the governing body of the county shall exercise all powers 
  4.16  granted to a city by sections 469.048 to 469.068 or other law.  
  4.17  Any city in Koochiching county may participate in the activities 
  4.18  of the county port authority under terms jointly agreed to by 
  4.19  the city and county. 
  4.20     Subd. 2.  [FOREIGN TRADE ZONE.] Koochiching county or any 
  4.21  city, town, or other political subdivision located in 
  4.22  Koochiching county may apply to the board defined in United 
  4.23  States Code, title 19, section 81a, for the right to use the 
  4.24  powers provided in United States Code, title 19, sections 81a 
  4.25  and 81u.  If the right is granted the city, town, or other 
  4.26  political subdivision may use the powers within or outside of a 
  4.27  port district.  The county, a city, town, or other political 
  4.28  subdivision may apply jointly with any other city, town, or 
  4.29  political subdivision located in Koochiching county. 
  4.30     Sec. 8.  Minnesota Statutes 2002, section 469.103, 
  4.31  subdivision 2, is amended to read: 
  4.32     Subd. 2.  [FORM.] The bonds of each series issued by the 
  4.33  authority under this section shall bear interest at a rate or 
  4.34  rates, shall mature at the time or times within 20 30 years from 
  4.35  the date of issuance, and shall be in the form, whether payable 
  4.36  to bearer, registrable as to principal, or fully registrable, as 
  5.1   determined by the authority.  Section 469.102, subdivision 6, 
  5.2   applies to all bonds issued under this section, and the bonds 
  5.3   and their coupons, if any, when payable to bearer, shall be 
  5.4   negotiable instruments. 
  5.5      Sec. 9.  Minnesota Statutes 2002, section 469.1813, 
  5.6   subdivision 8, is amended to read: 
  5.7      Subd. 8.  [LIMITATION ON ABATEMENTS.] In any year, the 
  5.8   total amount of property taxes abated by a political subdivision 
  5.9   under this section may not exceed (1) five ten percent of the 
  5.10  current levy, or (2) $100,000 $200,000, whichever is greater. 
  5.11     Sec. 10.  Minnesota Statutes 2002, section 473.39, is 
  5.12  amended by adding a subdivision to read: 
  5.13     Subd. 1j.  [OBLIGATIONS.] After July 1, 2003, in addition 
  5.14  to the authority in subdivision 1a, 1b, 1c, 1d, 1e, 1g, 1h, and 
  5.15  1i, the council may issue certificates of indebtedness, bonds, 
  5.16  or other obligations under this section in an amount not 
  5.17  exceeding $45,000,000 for capital expenditures as prescribed in 
  5.18  the council's regional transit master plan and transit capital 
  5.19  improvement program and for related costs, including the costs 
  5.20  of issuance and sale of the obligations.  
  5.21     Sec. 11.  [APPLICATION.] 
  5.22     Section 10 applies to the counties of Anoka, Carver, 
  5.23  Dakota, Hennepin, Ramsey, Scott, and Washington. 
  5.24     Sec. 12.  Minnesota Statutes 2002, section 473.898, 
  5.25  subdivision 3, is amended to read: 
  5.26     Subd. 3.  [LIMITATIONS.] (a) The principal amount of the 
  5.27  bonds issued pursuant to subdivision 1, exclusive of any 
  5.28  original issue discount, shall not exceed the amount of 
  5.29  $10,000,000 plus the amount the council determines necessary to 
  5.30  pay the costs of issuance, fund reserves, debt service, and pay 
  5.31  for any bond insurance or other credit enhancement. 
  5.32     (b) In addition to the amount authorized under paragraph 
  5.33  (a), the council may issue bonds under subdivision 1 in a 
  5.34  principal amount of $3,306,300, plus the amount the council 
  5.35  determines necessary to pay the cost of issuance, fund reserves, 
  5.36  debt service, and any bond insurance or other credit 
  6.1   enhancement.  The proceeds of bonds issued under this paragraph 
  6.2   may not be used to finance portable or subscriber radio sets. 
  6.3      (c) In addition to the amount authorized under paragraphs 
  6.4   (a) and (b), the council may issue bonds under subdivision 1 in 
  6.5   a principal amount of $12,000,000, plus the amount the council 
  6.6   determines necessary to pay the costs of issuance, fund 
  6.7   reserves, debt service, and any bond insurance or other credit 
  6.8   enhancement.  The proceeds of bonds issued under this paragraph 
  6.9   must be used to pay up to 30 percent of the cost to a local 
  6.10  government unit of building a subsystem and may not be used to 
  6.11  finance portable or subscriber radio sets.  The bond proceeds 
  6.12  may be used to make improvements to an existing 800 MHz radio 
  6.13  system that will interoperate with the regionwide public safety 
  6.14  radio communication system, provided that the improvements 
  6.15  conform to the board's plan and technical standards.  The 
  6.16  council must time the sale and issuance of the bonds so that the 
  6.17  debt service on the bonds can be covered by the additional 
  6.18  revenue that will become available in the fiscal year ending 
  6.19  June 30, 2005, generated under section 403.11 and appropriated 
  6.20  under section 473.901. 
  6.21     Sec. 13.  Minnesota Statutes 2002, section 474A.061, 
  6.22  subdivision 1, is amended to read: 
  6.23     Subdivision 1.  [ALLOCATION APPLICATION.] (a) An issuer may 
  6.24  apply for an allocation under this section by submitting to the 
  6.25  department an application on forms provided by the department, 
  6.26  accompanied by (1) a preliminary resolution, (2) a statement of 
  6.27  bond counsel that the proposed issue of obligations requires an 
  6.28  allocation under this chapter and the Internal Revenue Code, (3) 
  6.29  the type of qualified bonds to be issued, (4) an application 
  6.30  deposit in the amount of one percent of the requested allocation 
  6.31  before the last Monday in July, or in the amount of two percent 
  6.32  of the requested allocation on or after the last Monday in July, 
  6.33  (5) a public purpose scoring worksheet for manufacturing project 
  6.34  and enterprise zone facility project applications, and (6) for 
  6.35  residential rental projects, a statement from the applicant or 
  6.36  bond counsel as to whether the project preserves existing 
  7.1   federally subsidized housing for residential rental project 
  7.2   applications and whether the project is restricted to persons 
  7.3   who are 55 years of age or older.  The issuer must pay the 
  7.4   application deposit by a check made payable to the department of 
  7.5   finance.  The Minnesota housing finance agency, the Minnesota 
  7.6   rural finance authority, and the Minnesota higher education 
  7.7   services office may apply for and receive an allocation under 
  7.8   this section without submitting an application deposit. 
  7.9      (b) An entitlement issuer may not apply for an allocation 
  7.10  from the housing pool or from the public facilities pool unless 
  7.11  it has either permanently issued bonds equal to the amount of 
  7.12  its entitlement allocation for the current year plus any amount 
  7.13  of bonding authority carried forward from previous years or 
  7.14  returned for reallocation all of its unused entitlement 
  7.15  allocation.  An entitlement issuer may not apply for an 
  7.16  allocation from the housing pool unless it either has 
  7.17  permanently issued bonds equal to any amount of bonding 
  7.18  authority carried forward from a previous year or has returned 
  7.19  for reallocation all of its unused entitlement allocation.  For 
  7.20  purposes of this subdivision, its entitlement allocation 
  7.21  includes an amount obtained under section 474A.04, subdivision 
  7.22  6.  This paragraph does not apply to an application from the 
  7.23  Minnesota housing finance agency for an allocation under 
  7.24  subdivision 2a for cities who choose to have the agency issue 
  7.25  bonds on their behalf.  
  7.26     (c) If an application is rejected under this section, the 
  7.27  commissioner must notify the applicant and return the 
  7.28  application deposit to the applicant within 30 days unless the 
  7.29  applicant requests in writing that the application be 
  7.30  resubmitted.  The granting of an allocation of bonding authority 
  7.31  under this section must be evidenced by a certificate of 
  7.32  allocation.  
  7.33     Sec. 14.  Minnesota Statutes 2002, section 475.58, 
  7.34  subdivision 3b, is amended to read: 
  7.35     Subd. 3b.  [STREET RECONSTRUCTION.] (a) A municipality may, 
  7.36  without regard to the election requirement under subdivision 1, 
  8.1   issue and sell obligations for street reconstruction, if the 
  8.2   following conditions are met: 
  8.3      (1) the streets are reconstructed under a street 
  8.4   reconstruction plan that describes the streets to be 
  8.5   reconstructed, the estimated costs, and any planned 
  8.6   reconstruction of other streets in the municipality over the 
  8.7   next five years, and the plan and issuance of the obligations 
  8.8   has been approved by a vote of all of the members of the 
  8.9   governing body following a public hearing for which notice has 
  8.10  been published in the official newspaper at least ten days but 
  8.11  not more than 28 days prior to the hearing; and 
  8.12     (2) if a petition requesting a vote on the issuance is 
  8.13  signed by voters equal to five percent of the votes cast in the 
  8.14  last municipal general election and is filed with the municipal 
  8.15  clerk within 30 days of the public hearing, the municipality may 
  8.16  issue the bonds only after obtaining the approval of a majority 
  8.17  of the voters voting on the question of the issuance of the 
  8.18  obligations. 
  8.19     (b) Obligations issued under this subdivision are subject 
  8.20  to the debt limit of the municipality and are not excluded from 
  8.21  net debt under section 475.51, subdivision 4. 
  8.22  For purposes of this subdivision, street reconstruction includes 
  8.23  utility replacement and relocation, public safety street 
  8.24  modifications, and other activities incidental to the street 
  8.25  reconstruction, but does not include the portion of project cost 
  8.26  allocable to adding curbs and gutters where none previously 
  8.27  existed. 
  8.28     Sec. 15.  [CORPORATE STATUS FOR CERTAIN FEDERAL TAX LAW.] 
  8.29     For purposes of section 1.103-1 of the federal income tax 
  8.30  regulations, Lewis and Clark Rural Water System, Inc. is hereby 
  8.31  recognized as a corporation authorized to act on behalf of its 
  8.32  members, including its Minnesota member governmental units, to 
  8.33  provide drinking water to their communities and to issue debt 
  8.34  obligations in its own name on behalf of some or all of its 
  8.35  members, provided that Minnesota member governmental units are 
  8.36  not liable for the payment of principal of or interest on such 
  9.1   obligations. 
  9.2      Sec. 16.  Laws 1967, chapter 558, section 1, subdivision 5, 
  9.3   as amended by Laws 1979, chapter 135, section 1, and Laws 1985, 
  9.4   chapter 98, section 2, is amended to read:  
  9.5      Subd. 5.  Promotion of tourist, agricultural and industrial 
  9.6   developments.  The amount to be spent annually for the purposes 
  9.7   of this subdivision shall not exceed one dollar five dollars per 
  9.8   capita of the county's population.  
  9.9      Sec. 17.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
  9.10     Section 16 is effective the day after the governing body of 
  9.11  Beltrami county and its chief clerical officer timely complete 
  9.12  their compliance with Minnesota Statutes, section 645.021, 
  9.13  subdivisions 2 and 3. 
  9.14     Sec. 18.  Laws 1989, chapter 211, section 8, subdivision 2, 
  9.15  as amended by Laws 2002, chapter 390, section 24, is amended to 
  9.16  read: 
  9.17     Subd. 2.  [OPERATION OF DISTRICT.] (a) A hospital district 
  9.18  created under this section shall be subject to Minnesota 
  9.19  Statutes, sections 447.32, except subdivision 1, to 447.41, and 
  9.20  except as provided otherwise in this act.  
  9.21     (b) A hospital district created under this section is a 
  9.22  municipal corporation and political subdivision of the state. 
  9.23     <b>[EFFECTIVE DATE.]</b> This section is effective upon compliance 
  9.24  with Minnesota Statutes, section 645.021, subdivision 3, by the 
  9.25  governing body of the Cook county hospital district. 
  9.26     Sec. 19.  Laws 1989, chapter 211, section 8, subdivision 4, 
  9.27  as amended by Laws 2002, chapter 390, section 24, is amended to 
  9.28  read: 
  9.29     Subd. 4.  [TAX LEVY.] The tax levied under Minnesota 
  9.30  Statutes, section 447.34, shall not exceed $300,000 in any year, 
  9.31  and its for taxes levied in 2002.  For taxes levied in 2003 and 
  9.32  subsequent years, the tax must not exceed the lesser of: 
  9.33     (1) the product of the hospital district's property tax 
  9.34  levy limitation for the previous year determined under this 
  9.35  subdivision, multiplied by 103 percent; or 
  9.36     (2) the product of the hospital district's property tax 
 10.1   levy limitation for the previous year determined under this 
 10.2   subdivision multiplied by the ratio of the most recent available 
 10.3   annual medical care expenditure category of the revised Consumer 
 10.4   Price Index, U.S. citywide average, for all urban consumers 
 10.5   prepared by the United States Department of Labor to the same 
 10.6   annual index for the previous year. 
 10.7      The proceeds of the tax may be used for all purposes of the 
 10.8   hospital district. 
 10.9      <b>[EFFECTIVE DATE.]</b> This section is effective upon compliance 
 10.10  with Minnesota Statutes, section 645.021, subdivision 3, by the 
 10.11  governing body of the Cook county hospital district. 
 10.12     Sec. 20.  [KANDIYOHI COUNTY AND CITY OF WILLMAR; POWERS.] 
 10.13     Notwithstanding Minnesota Statutes, sections 469.090 and 
 10.14  469.1082, Kandiyohi county may exercise the powers of a city 
 10.15  under Minnesota Statutes, sections 469.090 to 469.107.  
 10.16  Kandiyohi county and the city of Willmar may enter into a joint 
 10.17  powers agreement under Minnesota Statutes, section 471.59, to 
 10.18  jointly or cooperatively exercise any of the powers common to 
 10.19  both the county and the city under Minnesota Statutes, sections 
 10.20  469.090 to 469.107, in a manner to be determined by a majority 
 10.21  of the Kandiyohi county board and the Willmar city council.  
 10.22     Sec. 21.  [SPECIAL TAXING DISTRICT.] 
 10.23     A joint powers entity created under section 20 is a 
 10.24  political subdivision of the state and a special taxing district 
 10.25  as defined by Minnesota Statutes, section 275.066, clause (24), 
 10.26  with the power to adopt and certify a property tax levy to the 
 10.27  county auditor.  The maximum allowable levy limit for this 
 10.28  special taxing district is the same levy limit as provided under 
 10.29  section 469.107, subdivision 1, and, to the extent levied, shall 
 10.30  replace the levy authorized under section 20 for Kandiyohi 
 10.31  county and the city of Willmar.  
 10.32     Sec. 22.  [EFFECTIVE DATE; NO LOCAL APPROVAL REQUIRED.] 
 10.33     (a) Under Minnesota Statutes, section 645.023, subdivision 
 10.34  1, paragraph (a), no local approval of sections 20 and 21 is 
 10.35  required. 
 10.36     (b) Sections 20 and 21 are effective the day after their 
 11.1   final enactment. 
 11.2      Sec. 23.  [NURSING HOME BONDS AUTHORIZED.] 
 11.3      Itasca county may issue bonds under Minnesota Statutes, 
 11.4   sections 376.55 and 376.56, to finance the construction of a 
 11.5   35-bed nursing home facility to replace an existing 35-bed 
 11.6   private facility located in the county.  For the purposes of 
 11.7   Minnesota Statutes, section 376.56, subdivision 3, the 
 11.8   construction constitutes replacement of an existing nursing home 
 11.9   without increasing the number of accommodations for residents.  
 11.10  The bonds issued under this section must be payable solely from 
 11.11  revenues and may not be general obligations of the county. 
 11.12     Sec. 24.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 11.13     Section 23 is effective the day after the governing body of 
 11.14  Itasca county and its chief clerical officer timely complete 
 11.15  their compliance with Minnesota Statutes, section 645.021, 
 11.16  subdivisions 2 and 3. 
 11.17     Sec. 25.  [MINNEAPOLIS COMMUNITY PLANNING AND ECONOMIC 
 11.18  DEVELOPMENT DEPARTMENT.] 
 11.19     Subdivision 1.  Notwithstanding a contrary provision of 
 11.20  law, the charter of the city of Minneapolis, or its civil 
 11.21  service rules, the city council of the city of Minneapolis may, 
 11.22  by ordinance: 
 11.23     (1) establish a department of the city to be designated as 
 11.24  the community planning and economic development department, or 
 11.25  another name as the city designates by ordinance.  The term "the 
 11.26  department" as used in sections 25 to 27 means the community 
 11.27  planning and economic development department established under 
 11.28  this subdivision; 
 11.29     (2) transfer to the department the community development 
 11.30  and planning duties and functions of any other department or 
 11.31  office of the city of Minneapolis, including the employees 
 11.32  performing those duties and functions.  If the duties and 
 11.33  functions of the city planning department are transferred to the 
 11.34  department, the department must perform the administrative 
 11.35  duties that were formerly performed by the city's planning 
 11.36  department on behalf of or at the request of the city's planning 
 12.1   commission; 
 12.2      (3) transfer any positions of the Minneapolis community 
 12.3   development agency to the city of Minneapolis.  The ordinance 
 12.4   may provide the process for establishing, classifying, and 
 12.5   describing the duties for the transferred positions.  Employees 
 12.6   of the Minneapolis community development agency who are not in 
 12.7   the classified service of the city of Minneapolis may be 
 12.8   transferred to the city of Minneapolis, and the city council may 
 12.9   transfer the employees into the classified service of the city 
 12.10  of Minneapolis and into positions for which the employees are 
 12.11  qualified, as determined by the city council; 
 12.12     (4) establish the position of director of the department in 
 12.13  the unclassified service of the city, and establish other 
 12.14  unclassified positions as necessary.  Unclassified positions, 
 12.15  other than the director, must meet the following criteria: 
 12.16     (i) the person occupying the position must report to the 
 12.17  director or a deputy director; 
 12.18     (ii) the person occupying the position must be part of the 
 12.19  director's management team; 
 12.20     (iii) the duties of the position must involve significant 
 12.21  discretion and substantial involvement in the development, 
 12.22  interpretation, or implementation of city or department policy; 
 12.23     (iv) the duties of the position must not primarily require 
 12.24  technical expertise where continuity in the position would be 
 12.25  significant; and 
 12.26     (v) the person occupying the position must be accountable 
 12.27  to, loyal to, and compatible with the mayor, the city council, 
 12.28  and the director; and 
 12.29     (5) establish the terms and conditions of employment for 
 12.30  employees of the department. 
 12.31     Subd. 2.  The employees of the department are employees of 
 12.32  the city of Minneapolis for the purposes of membership in the 
 12.33  public employees retirement association.  An employee 
 12.34  transferred from the Minneapolis community development agency to 
 12.35  the city of Minneapolis must elect within six months of the 
 12.36  effective date of the transfer to either continue as a member of 
 13.1   the retirement program in which the employee participated on the 
 13.2   date of the employee's transfer to the city of Minneapolis or to 
 13.3   become a member of the public employees retirement association.  
 13.4   This election is irrevocable.  An employee who was a member of 
 13.5   the Minneapolis employees retirement fund on the date of the 
 13.6   employee's transfer to the city of Minneapolis may continue as a 
 13.7   member of that fund retaining all vested rights, constructive 
 13.8   time, and employee and employer contributions made on the 
 13.9   employee's behalf to that fund. The city of Minneapolis must 
 13.10  make the required employer contributions to the elected 
 13.11  retirement program.  An employee electing to become a member of 
 13.12  the public employees retirement association may enroll in the 
 13.13  association with vested rights based upon the employee's current 
 13.14  tenure as an employee of the Minneapolis community development 
 13.15  agency, but that tenure does not constitute allowable service 
 13.16  for purposes of determining benefits. 
 13.17     Subd. 3.  The terms of a collective bargaining agreement 
 13.18  that is in effect between the Minneapolis community development 
 13.19  agency and its employees, some or all of whom may be transferred 
 13.20  to the city of Minneapolis, are binding upon the city of 
 13.21  Minneapolis and the employees for the term of the contract. 
 13.22     Subd. 4.  An employee electing under subdivision 2 to 
 13.23  become a member of the public employees retirement association 
 13.24  may purchase allowable service credit from the association by 
 13.25  paying to the association an amount calculated under Minnesota 
 13.26  Statutes, section 356.55.  The service credit that is 
 13.27  purchasable is a period or periods of employment by the 
 13.28  Minneapolis community development agency that would have been 
 13.29  eligible service for coverage by the general employees 
 13.30  retirement plan of the public employees retirement association 
 13.31  if the service had been rendered after the effective date of 
 13.32  this article.  A person electing to purchase service credit 
 13.33  under this subdivision must provide any documentation of prior 
 13.34  service required by the executive director of the public 
 13.35  employees retirement association.  Notwithstanding any provision 
 13.36  of Minnesota Statutes, section 356.55, to the contrary, the 
 14.1   prior service credit purchase payment may be made in whole or in 
 14.2   part on an institution-to-institution basis from a plan 
 14.3   qualified under the federal Internal Revenue Code, section 
 14.4   401(a), 401(k), or 414(h), or from an annuity qualified under 
 14.5   the federal Internal Revenue Code, section 403, or from a 
 14.6   deferred compensation plan under the federal Internal Revenue 
 14.7   Code, section 457, to the extent permitted by federal law.  In 
 14.8   no event may a prior service credit purchase transfer be paid 
 14.9   directly to the person purchasing the service. 
 14.10     Sec. 26.  [AUTHORITY.] 
 14.11     Subdivision 1.  Notwithstanding a contrary law or provision 
 14.12  of the Minneapolis city charter, the city council may exercise 
 14.13  the powers granted by Minnesota Statutes, sections 469.001 to 
 14.14  469.134, and 469.152 to 469.1799, and any other powers granted 
 14.15  to a city of the first class, except for powers relating to 
 14.16  public housing.  In exercising the powers authorized by this 
 14.17  section, the city of Minneapolis shall be the authority, agency, 
 14.18  or redevelopment agency referred to in Minnesota Statutes, 
 14.19  sections 469.001 to 469.134, and 469.152 to 469.1799, and the 
 14.20  city council of the city of Minneapolis shall be the governing 
 14.21  body or board of commissioners of the authority, agency, or 
 14.22  redevelopment agency.  The city council may exercise the powers 
 14.23  authorized by this subdivision; by Laws 1980, chapter 595, as 
 14.24  amended; by Laws 1990, chapter 604, article 7, section 29, as 
 14.25  amended by Laws 1991, chapter 291, article 10, section 20; and 
 14.26  may exercise any other development or redevelopment powers 
 14.27  authorized by law, independently, or in conjunction with each 
 14.28  other, as though all of the authorized powers had been granted 
 14.29  to a single entity.  But a program, project, or district 
 14.30  authorized by the city under Minnesota Statutes, sections 
 14.31  469.001 to 469.134, and 469.152 to 469.l799, is subject to the 
 14.32  limitations of the program, project, or district imposed by 
 14.33  Minnesota Statutes, sections 469.001 to 469.134, and 469.152 to 
 14.34  469.1799. 
 14.35     Subd. 2.  The city council may delegate to the department 
 14.36  any of the powers granted to the city of Minneapolis under 
 15.1   subdivision 1, except the power to tax and the power to issue 
 15.2   bonds, notes, or other obligations of the city of Minneapolis. 
 15.3      Subd. 3.  Notwithstanding a contrary law or provision of 
 15.4   the Minneapolis city charter, money, investments, real property, 
 15.5   personal property, assets, programs, projects, districts, 
 15.6   developments, or obligations of the Minneapolis community 
 15.7   development agency may be transferred by resolution of the city 
 15.8   council to the city of Minneapolis and be made subject to the 
 15.9   control, authority, and operation of the department.  If a 
 15.10  transfer is made, the city of Minneapolis is bound by the 
 15.11  contractual obligations of the Minneapolis community development 
 15.12  agency with respect to the money, investments, real estate, 
 15.13  personal property, assets, programs, projects, districts, 
 15.14  developments, or obligations, including the obligations of any 
 15.15  bonds, notes, or other debt obligations of the Minneapolis 
 15.16  community development agency.  The pledge of the full faith and 
 15.17  credit of the Minneapolis community development agency to any 
 15.18  bonds, notes, or other debt obligations of the Minneapolis 
 15.19  community development agency that are transferred to the city of 
 15.20  Minneapolis shall not be secured by the full faith and credit of 
 15.21  the city of Minneapolis and shall not be secured by the taxing 
 15.22  powers of the city of Minneapolis but only by the assets pledged 
 15.23  by the Minneapolis community development agency to the payment 
 15.24  of the bonds, notes, or other debt obligations.  The city 
 15.25  council is granted the powers necessary to perform the 
 15.26  contractual obligations transferred to the city of Minneapolis. 
 15.27     Subd. 4.  The city council may pledge to the payment of 
 15.28  bonds, notes, or other obligations of the city of Minneapolis 
 15.29  revenues, assets, reserves, or other property transferred to the 
 15.30  city of Minneapolis under this section. 
 15.31     Subd. 5.  The city council may pledge to the payment of 
 15.32  bonds, notes, or other obligations of the city of Minneapolis 
 15.33  the full faith and credit of the city of Minneapolis, or the 
 15.34  taxing power of the city of Minneapolis, to finance programs, 
 15.35  projects, districts, developments, facilities, or activities 
 15.36  undertaken by the department. 
 16.1      Subd. 6.  Unless prohibited by other law or a contractual 
 16.2   obligation including a pledge to the owners of bonds, notes, or 
 16.3   other indebtedness, the money and investments of the Minneapolis 
 16.4   community development agency transferred to the city of 
 16.5   Minneapolis under this section may be deposited in any fund or 
 16.6   account of the city of Minneapolis. 
 16.7      Subd. 7.  If all money, investments, real property, 
 16.8   personal property, assets, programs, projects, districts, 
 16.9   developments, or obligations of the Minneapolis community 
 16.10  development agency are transferred to the city of Minneapolis, 
 16.11  the city council may, by resolution, dissolve the Minneapolis 
 16.12  community development agency.  Any rights, duties, claims, 
 16.13  awards, grants, or liabilities that may arise after the 
 16.14  dissolution of the Minneapolis community development agency 
 16.15  shall constitute rights, duties, claims, awards, grants, or 
 16.16  liabilities of the city of Minneapolis.  The pledge of the full 
 16.17  faith and credit of the Minneapolis community development agency 
 16.18  to any bonds, notes, or other debt obligations of the 
 16.19  Minneapolis community development agency that are transferred to 
 16.20  the city of Minneapolis shall not be secured by the full faith 
 16.21  and credit or the taxing powers of the city of Minneapolis but 
 16.22  shall be secured only by the assets pledged by the Minneapolis 
 16.23  community development agency to the payment of the bonds, notes, 
 16.24  or other debt obligations. 
 16.25     Subd. 8.  If the city of Minneapolis exercises its powers 
 16.26  for industrial development or establishes industrial development 
 16.27  districts under Minnesota Statutes, sections 469.048 to 469.068, 
 16.28  the term "industrial," when used in relation to industrial 
 16.29  development, includes economic and economic development and 
 16.30  housing and housing development. 
 16.31     Sec. 27.  [LIMITATIONS.] 
 16.32     Subdivision 1.  Bonds, notes, or other obligations issued 
 16.33  to finance or refinance a program, project, district, 
 16.34  development, facility, or activity of the department must be 
 16.35  issued by the city council, or, at the request of the city 
 16.36  council, by the board of estimate and taxation of the city of 
 17.1   Minneapolis.  The limitations of this section must not be 
 17.2   applied in a manner that impairs the security of bonds, notes, 
 17.3   or other obligations issued before the imposition of the 
 17.4   limitations. 
 17.5      Subd. 2.  Unless otherwise provided in sections 25 to 27, 
 17.6   all actions of the city council under sections 25 to 27 are 
 17.7   actions within chapter 3, section 1, of the charter of the city 
 17.8   of Minneapolis. 
 17.9      Sec. 28.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 17.10     Sections 25 to 27 are effective the day after the governing 
 17.11  body of the city of Minneapolis and its chief clerical officer 
 17.12  timely complete their compliance with Minnesota Statutes, 
 17.13  section 645.021, subdivisions 2 and 3. 
 17.14     Sec. 29.  [BONDS ISSUANCE VALIDATED.] 
 17.15     The provisions of Minnesota Statutes, sections 373.47, 
 17.16  subdivision 1, and 473.907, subdivision 3, requiring prior 
 17.17  review and approval by the public safety radio system planning 
 17.18  committee do not apply to the general obligation bonds issued by 
 17.19  Anoka county in a principal amount of $10,500,000 on November 
 17.20  20, 2002. 
 17.21     <b>[EFFECTIVE DATE.]</b> This section is effective upon compliance 
 17.22  by the governing body of Anoka county with the provisions of 
 17.23  Minnesota Statutes, section 645.021. 
 17.24     Sec. 30.  [VALIDATION OF APPROVAL.] 
 17.25     Notwithstanding Minnesota Statutes, section 645.021, 
 17.26  subdivision 3, Laws 1980, chapter 569, sections 2 through 8, 
 17.27  approved by the board of directors of local government 
 17.28  information systems by resolution adopted on July 30, 1980, are 
 17.29  effective as of July 1, 1980, and apply to obligations issued by 
 17.30  local government information systems after April 1, 2003. 
 17.31     Sec. 31.  [SOUTHERN ST. LOUIS COUNTY SPECIAL TAXING 
 17.32  DISTRICT; CHRIS JENSEN NURSING HOME.] 
 17.33     Subdivision 1.  [ESTABLISHED.] The Southern St. Louis 
 17.34  County Special Taxing District for purposes of the Chris Jensen 
 17.35  Nursing Home is established. 
 17.36     Subd. 2.  [AREA.] The district in subdivision 1 includes 
 18.1   all that part of St. Louis county comprising the cities of 
 18.2   Duluth, Proctor, Hermantown, Brookston, Floodwood, and 
 18.3   Meadowlands, and the townships of Alborn, Alden, Arrowhead, 
 18.4   Brevator, Canosia, Culver, Duluth, Elmer, Fine Lakes, Floodwood, 
 18.5   Fredenberg, Gensen, Grand Lake, Halden, Industrial, Lakewood, 
 18.6   Meadowlands, Midway, Ness, New Independence, Normanna, 
 18.7   Northland, North Star, Pequaywan, Prairie Lake, Rice Lake, 
 18.8   Solway, Stoney Brook, and Van Buren, and unorganized 
 18.9   congressional townships of 52-21, 50-19, 53-16, 53-15, and 53-14.
 18.10     Subd. 3.  [PURPOSE.] The district established in 
 18.11  subdivision 1 is established to operate, maintain, and improve 
 18.12  the Chris Jensen Nursing Home. 
 18.13     Subd. 4.  [LEVY AUTHORITY.] The district established under 
 18.14  subdivision 1 is a public corporation and political subdivision 
 18.15  of the state with all the powers, rights, privileges, 
 18.16  immunities, and duties that may be validly granted to or imposed 
 18.17  on a municipal corporation as provided in this section, and a 
 18.18  special taxing district as defined by Minnesota Statutes, 
 18.19  section 275.066, clause (24), with the power to adopt and 
 18.20  certify a property tax levy to the county auditor.  The maximum 
 18.21  allowable annual levy for this special taxing district is 
 18.22  $1,000,000 in the first levy and $750,000 each levy thereafter. 
 18.23     Subd. 5.  [MEMBERS AND SELECTION.] The nursing home board 
 18.24  shall be composed of nine members selected as follows: 
 18.25     (a) The mayor of the city of Duluth shall select three 
 18.26  members and shall designate the term of each such member in 
 18.27  accordance with subdivision 6, subject to approval of the Duluth 
 18.28  city council. 
 18.29     (b) The St. Louis county board shall select three members 
 18.30  and shall designate the term of each such member in accordance 
 18.31  with subdivision 6. 
 18.32     (c) The mayor of the city of Hermantown shall select one 
 18.33  member subject to approval of the Hermantown city council. 
 18.34     (d) The mayor of the city of Proctor shall select one 
 18.35  member subject to approval of the Proctor city council. 
 18.36     (e) The South St. Louis county township officers shall 
 19.1   select one member. 
 19.2      Subd. 6.  [TERMS OF OFFICE.] The terms of the first board 
 19.3   members shall expire on December 31 in the following calendar 
 19.4   years:  the three members selected by the city of Duluth shall 
 19.5   serve staggered terms with one term expiring on December 31, 
 19.6   2004, one expiring on December 31, 2005, and one expiring on 
 19.7   December 31, 2006, as determined by the appointing authority; 
 19.8   the three members selected by St. Louis county shall serve 
 19.9   staggered terms with one term expiring on December 31, 2004, one 
 19.10  expiring on December 31, 2005, and one expiring on December 31, 
 19.11  2006, as determined by the appointing authority; the member 
 19.12  selected by the township officers shall serve a one-year term 
 19.13  expiring on December 31, 2004; the member selected by the city 
 19.14  of Hermantown shall serve a two-year term expiring on December 
 19.15  31, 2005; and the member selected by the city of Proctor shall 
 19.16  serve a three-year term expiring on December 31, 2006.  
 19.17  Succeeding terms of all board members shall be three years, 
 19.18  except that each member shall serve until a successor has been 
 19.19  duly selected and qualified. 
 19.20     Subd. 7.  [PROPERTY.] All assets, liabilities, employees, 
 19.21  and property of the Chris Jensen Nursing Home shall be 
 19.22  transferred to the nursing home board from St. Louis county on 
 19.23  the first day of the year after the formation of the nursing 
 19.24  home board, but no later than January 1, 2005. 
 19.25     Subd. 8.  [ORGANIZATION AND OPERATION OF THE BOARD.] The 
 19.26  nursing home board shall elect officers and establish bylaws at 
 19.27  its first meeting. 
 19.28     Subd. 9.  [EFFECTIVE DATE; LOCAL APPROVAL.] This section is 
 19.29  effective the day after the governing body of St. Louis county 
 19.30  and its chief clerical officer timely complete their compliance 
 19.31  with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 
 19.32     If effective before September 1, 2003, the first levy is 
 19.33  the payable 2004 levy; if effective between September 1, 2003 
 19.34  and September 1, 2004, the first levy is the payable 2005 levy; 
 19.35  if effective after August 31, 2004, the first levy is the 
 19.36  payable 2006 levy. 
 20.1      Sec. 32.  [EFFECTIVE DATES.] 
 20.2      This article is effective the day following final 
 20.3   enactment, except as otherwise provided in this article. 
 20.4                              ARTICLE 2
 20.5      Section 1.  [LEGISLATIVE PURPOSE AND POLICY.] 
 20.6      The legislature determines that in the area in and around 
 20.7   the city of Alexandria, there are economic development issues 
 20.8   that can be more effectively dealt with by a single entity on a 
 20.9   coordinated basis rather than by multiple existing government 
 20.10  units.  The legislature, therefore, declares that for a 
 20.11  coordinated approach to economic development in the area, it is 
 20.12  necessary to establish for the area an economic development 
 20.13  authority with the responsibility of exercising the powers of an 
 20.14  economic development authority in order to advance the economic 
 20.15  vitality of the area. 
 20.16     Sec. 2.  [DEFINITIONS.] 
 20.17     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
 20.18  1 to 8, the terms defined in this section have the following 
 20.19  meanings. 
 20.20     Subd. 2.  [LAKES AREA ECONOMIC DEVELOPMENT 
 20.21  AUTHORITY.] "Lakes area economic development authority" or 
 20.22  "authority" means the lakes area economic authority established 
 20.23  as provided in section 3. 
 20.24     Subd. 3.  [PERSON.] "Person" means an individual, 
 20.25  partnership, corporation, cooperative, or other organization or 
 20.26  entity, public or private. 
 20.27     Subd. 4.  [MEMBER.] "Member" means the city of Alexandria 
 20.28  or Garfield or the township of Alexandria or La Grand, or any 
 20.29  other municipality, the geographic area of which is included 
 20.30  within the jurisdiction of the authority. 
 20.31     Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
 20.32  or home rule charter city or town located in Douglas county. 
 20.33     Sec. 3.  [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] 
 20.34     Subdivision 1.  [ESTABLISHMENT.] A lakes area economic 
 20.35  development authority with jurisdiction over the geographic area 
 20.36  of its members is established as a public corporation and 
 21.1   political subdivision of the state with perpetual succession and 
 21.2   all the rights, powers, privileges, immunities, and duties that 
 21.3   may be validly granted to or imposed upon a municipal 
 21.4   corporation, as provided in sections 1 to 8. 
 21.5      Subd. 2.  [BOARD OF COMMISSIONERS.] The authority is 
 21.6   governed by a board of commissioners to be selected as follows:  
 21.7   the mayor of each member city, and the chair of the town board 
 21.8   of each member town shall appoint one commissioner, subject to 
 21.9   the approval of the respective city council or town board.  The 
 21.10  terms of the commissioner are as provided in subdivision 5. 
 21.11     Subd. 3.  [TIME LIMITS FOR SELECTION, ALTERNATIVE 
 21.12  APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 
 21.13  commissioners must be made no later than 60 days after sections 
 21.14  1 to 8 become effective.  Subsequent appointments must be made 
 21.15  within 60 days before the expiration of a term in the same 
 21.16  manner as the predecessor was selected.  A vacancy on the board 
 21.17  must be filled within 60 days after it occurs.  If a selection 
 21.18  is not made within the prescribed time, the chief judge of the 
 21.19  seventh judicial district of the Minnesota district court on 
 21.20  application by an interested person shall appoint an eligible 
 21.21  person to the board. 
 21.22     Subd. 4.  [VACANCIES.] If a vacancy occurs in the office of 
 21.23  commissioner, the vacancy must be filled for the unexpired term 
 21.24  in a like manner as provided for selection of the commissioner 
 21.25  who vacated the office.  The office must be considered vacant 
 21.26  under the conditions specified in Minnesota Statutes, section 
 21.27  351.02. 
 21.28     Subd. 5.  [TERMS OF OFFICE.] The terms of the initial 
 21.29  appointees to the board of commissioners are for three, four, 
 21.30  five, and six years and must be established by lot among the 
 21.31  initial four commissioners.  The mayor or town board chair of 
 21.32  any new member added under section 6 shall designate the term, 
 21.33  not to exceed six years, of the first commissioner selected to 
 21.34  represent the member.  Succeeding terms of all commissioners are 
 21.35  six years, except that each commissioner serves until a 
 21.36  successor has been duly selected and qualified. 
 22.1      Subd. 6.  [REMOVAL.] A commissioner may be removed by the 
 22.2   unanimous vote of the appointing governing body, with or without 
 22.3   cause. 
 22.4      Subd. 7.  [QUALIFICATIONS.] A commissioner may, but need 
 22.5   not, be a resident of the territory of the member appointing 
 22.6   that commissioner. 
 22.7      Subd. 8.  [COMPENSATION.] A commissioner must be paid a per 
 22.8   diem compensation for attending a regular or special meeting in 
 22.9   an amount determined by the board.  A commissioner must be 
 22.10  reimbursed for all reasonable expenses incurred in the 
 22.11  performance of the commissioner's duties as determined by the 
 22.12  board. 
 22.13     Sec. 4.  [POWERS; APPLICATION OF EDA LAW.] 
 22.14     Subdivision 1.  [USE OF EDA POWERS.] Except as otherwise 
 22.15  provided in sections 1 to 8, the authority may exercise any of 
 22.16  the powers of an economic development authority (EDA) provided 
 22.17  by Minnesota Statutes, sections 469.090 to 469.1082, and for 
 22.18  this purpose the term "city" means a member.  Minnesota 
 22.19  Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 
 22.20  469.108 to 469.1081 apply to the authority, except that the 
 22.21  authority's fiscal year is the calendar year.  
 22.22     Subd. 2.  [LAW THAT IS NOT APPLICABLE.] The provisions in: 
 22.23     (1) Minnesota Statutes, section 469.091, subdivision 1, 
 22.24  expressly relating to: 
 22.25     (i) the adoption of an enabling resolution; 
 22.26     (ii) Minnesota Statutes, section 469.092; or 
 22.27     (iii) housing and redevelopment authorities; and 
 22.28     (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 
 22.29  and 469.107; 
 22.30  do not apply to the authority. 
 22.31     Sec. 5.  [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] 
 22.32     (a) A member shall, at the request of the authority, levy a 
 22.33  tax in any year for the benefit of the authority.  The tax is, 
 22.34  for each member, a pro rata portion of the total amount of tax 
 22.35  requested by the authority based on the taxable market value 
 22.36  within a member's jurisdiction, but in no event may the tax in 
 23.1   any year exceed 0.01813 percent of taxable market value.  For 
 23.2   purposes of this section, "taxable market value" has the meaning 
 23.3   as given in Minnesota Statutes, section 273.032. 
 23.4      (b) The treasurer of each member city or town shall, within 
 23.5   15 days after receiving the property tax settlements from the 
 23.6   county treasurer, pay to the treasurer of the authority the 
 23.7   amount collected for this purpose.  The money must be used by 
 23.8   the authority for the purposes provided by sections 1 to 8. 
 23.9      Sec. 6.  [ADDITION AND WITHDRAWAL OF MEMBERS.] 
 23.10     Subdivision 1.  [ADDITIONS.] A municipality upon a 
 23.11  resolution adopted by a four-fifths vote of all of its governing 
 23.12  body may petition the authority to be included within the 
 23.13  jurisdiction of the authority and, if approved by the authority, 
 23.14  the geographic area of the municipality must be included within 
 23.15  the jurisdiction of the authority and subject to the 
 23.16  jurisdiction of the authority under sections 1 to 8. 
 23.17     Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
 23.18  the authority by resolution of its governing body.  The 
 23.19  municipality must notify the board of commissioners of the 
 23.20  authority of the withdrawal by providing a copy of the 
 23.21  resolution at least two years in advance of the proposed 
 23.22  withdrawal.  Unless the authority and the withdrawing member 
 23.23  agree otherwise by action of their governing bodies, the taxable 
 23.24  property of the withdrawing member is subject to the property 
 23.25  tax levy under section 5 for two taxes payable years following 
 23.26  the notification of the withdrawal and the withdrawing member 
 23.27  retains any rights, obligations, and liabilities obtained or 
 23.28  incurred during its participation. 
 23.29     Sec. 7.  [CONTRACTS WITH NONPROFIT CORPORATIONS.] 
 23.30     The authority may enter into contracts with one or more 
 23.31  nonprofit corporations to make, from funds of and under 
 23.32  guidelines set by the authority, loans or grants for projects 
 23.33  the authority may undertake under sections 1 to 8.  Minnesota 
 23.34  Statutes, section 465.719, does not apply so long as the 
 23.35  nonprofit corporation is not described in Minnesota Statutes, 
 23.36  section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 
 24.1      Sec. 8.  [RELATION TO EXISTING LAWS.] 
 24.2      Sections 1 to 8 must be given full effect notwithstanding 
 24.3   any law or charter that is inconsistent with them. 
 24.4      Sec. 9.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
 24.5      Sections 1 to 8 are only effective as to all affected 
 24.6   governing bodies on the day after the last of the governing 
 24.7   bodies or town boards of the cities of Alexandria and Garfield 
 24.8   and the towns of Alexandria and La Grand in Douglas county and 
 24.9   the chief clerical officer of each of them timely complete their 
 24.10  compliance with Minnesota Statutes, section 645.021, 
 24.11  subdivisions 2 and 3. 
 24.12                             ARTICLE 3
 24.13     Section 1.  [DEFINITIONS.] 
 24.14     Subdivision 1.  [APPLICATION.] The terms defined in this 
 24.15  section shall have the meaning given them unless otherwise 
 24.16  provided or indicated by the context.  
 24.17     Subd. 2.  [ACQUISITION AND BETTERMENT.] "Acquisition" and 
 24.18  "betterment" shall have the meanings given them in Minnesota 
 24.19  Statutes, section 475.51.  
 24.20     Subd. 3.  [AGENCY.] "Agency" means the Minnesota pollution 
 24.21  control agency created and established by Minnesota Statutes, 
 24.22  chapter 116.  
 24.23     Subd. 4.  [AGRICULTURAL PROPERTY.] "Agricultural property" 
 24.24  means land as is classified agricultural land within the meaning 
 24.25  of Minnesota Statutes, section 273.13, subdivision 23.  
 24.26     Subd. 5.  [CURRENT COSTS OF ACQUISITION, BETTERMENT, AND 
 24.27  DEBT SERVICE.] "Current costs of acquisition, betterment, and 
 24.28  debt service" means interest and principal estimated to be due 
 24.29  during the budget year on bonds issued to finance the 
 24.30  acquisition and betterment and all other costs of acquisition 
 24.31  and betterment estimated to be paid during the budget year from 
 24.32  funds other than bond proceeds and federal or state grants. 
 24.33     Subd. 6.  [DISTRICT DISPOSAL SYSTEM.] "District disposal 
 24.34  system" means any and all of the interceptors or treatment works 
 24.35  owned, constructed, or operated by the board unless designated 
 24.36  by the board as local sanitary sewer facilities.  
 25.1      Subd. 7.  [CENTRAL LAKES REGION SANITARY DISTRICT AND 
 25.2   DISTRICT.] "Central Lakes Region Sanitary District" and 
 25.3   "district" mean the area over which the sanitary sewer board has 
 25.4   jurisdiction, including those parts of the Douglas county 
 25.5   townships of Carlos, Brandon, La Grand, Leaf Valley, Miltona, 
 25.6   and Moe, as more particularly described by metes and bounds in 
 25.7   the comprehensive plan adopted under section 4.  
 25.8      Subd. 8.  [INTERCEPTOR.] "Interceptor" means any sewer and 
 25.9   necessary appurtenances to it, including but not limited to, 
 25.10  mains, pumping stations, and sewage flow regulating and 
 25.11  measuring stations, that is designed for or used to conduct 
 25.12  sewage originating in more than one local government unit, or 
 25.13  that is designed or used to conduct all or substantially all the 
 25.14  sewage originating in a single local government unit from a 
 25.15  point of collection in that unit to an interceptor or treatment 
 25.16  works outside that unit, or that is determined by the board to 
 25.17  be a major collector of sewage used or designed to serve a 
 25.18  substantial area in the district.  
 25.19     Subd. 9.  [LOCAL GOVERNMENT UNIT OR GOVERNMENT 
 25.20  UNIT.] "Local government unit" or "government unit" means any 
 25.21  municipal or public corporation or governmental or political 
 25.22  subdivision or agency located in whole or in part in the 
 25.23  district, authorized by law to provide for the collection and 
 25.24  disposal of sewage. 
 25.25     Subd. 10.  [LOCAL SANITARY SEWER FACILITIES.] "Local 
 25.26  sanitary sewer facilities" means all or any part of any disposal 
 25.27  system in the district other than the district disposal system.  
 25.28     Subd. 11.  [MUNICIPALITY.] "Municipality" means any 
 25.29  statutory or home rule charter city or town located in whole or 
 25.30  in part in the district.  
 25.31     Subd. 12.  [PERSON.] "Person" means any individual, 
 25.32  partnership, corporation, limited liability company, 
 25.33  cooperative, or other organization or entity, public or private. 
 25.34     Subd. 13.  [POLLUTION AND SEWER SYSTEM.] "Pollution" and 
 25.35  "sewer system" have the meanings given them in Minnesota 
 25.36  Statutes, section 115.01.  
 26.1      Subd. 14.  [SANITARY SEWER BOARD OR BOARD.] "Sanitary sewer 
 26.2   board" or "board" means the sanitary sewer board established for 
 26.3   the Central Lakes Region Sanitary District as provided in 
 26.4   section 2.  
 26.5      Subd. 15.  [SEWAGE.] "Sewage" means all liquid or 
 26.6   water-carried waste products from whatever sources derived, 
 26.7   together with the groundwater infiltration and surface water 
 26.8   that may be present.  
 26.9      Subd. 16.  [TOTAL COSTS OF ACQUISITION AND BETTERMENT AND 
 26.10  COSTS OF ACQUISITION AND BETTERMENT.] "Total costs of 
 26.11  acquisition and betterment" and "costs of acquisition and 
 26.12  betterment" mean all acquisition and betterment expenses that 
 26.13  are permitted to be financed out of bond proceeds issued in 
 26.14  accordance with section 12, subdivision 4, whether or not the 
 26.15  expenses are in fact financed out of the bond proceeds.  
 26.16     Subd. 17.  [TREATMENT WORKS AND DISPOSAL 
 26.17  SYSTEM.] "Treatment works" and "disposal system" have the 
 26.18  meanings given them in Minnesota Statutes, section 115.01. 
 26.19     Sec. 2.  [SANITARY SEWER BOARD.] 
 26.20     Subdivision 1.  [ESTABLISHMENT.] A sanitary sewer board 
 26.21  with jurisdiction in the Central Lakes Region Sanitary District 
 26.22  is established as a public corporation and political subdivision 
 26.23  of the state with perpetual succession and all the rights, 
 26.24  powers, privileges, immunities, and duties that may be validly 
 26.25  granted to or imposed upon a municipal corporation, as provided 
 26.26  in this article.  
 26.27     Subd. 2.  [MEMBERS AND SELECTION.] The number of board 
 26.28  members and method by which they are selected is as follows:  
 26.29  The governing body of any municipality located in whole or part 
 26.30  within the district must each separately select one member.  
 26.31  Upon the board's ordering of a project to construct a sanitary 
 26.32  sewer, the governing body of any municipality must appoint one 
 26.33  additional member for each full 800 special assessments included 
 26.34  in the ordered project to be levied against property located in 
 26.35  the municipality.  The term of each member is subject to the 
 26.36  approval of the voting members of the city council or town board.
 27.1      Subd. 3.  [TIME LIMIT; ALTERNATIVE APPOINTMENT.] The 
 27.2   initial board members must be selected as provided in 
 27.3   subdivision 2 within 60 days after this article is effective.  A 
 27.4   successor must be selected at any time within 60 days before the 
 27.5   expiration of the predecessor's term in the same manner as the 
 27.6   predecessor was selected.  Any vacancy on the board must be 
 27.7   filled within 60 days after it occurs.  If a selection is not 
 27.8   made as provided within the time prescribed, the chief judge of 
 27.9   the seventh judicial district of the Minnesota district court, 
 27.10  on application by any interested person, shall appoint an 
 27.11  eligible person to the board. 
 27.12     Subd. 4.  [VACANCIES.] If the office of any board member 
 27.13  becomes vacant, the vacancy shall be filled for the unexpired 
 27.14  term in the manner as provided for selection of the member who 
 27.15  vacated the office.  The office shall be deemed vacant under the 
 27.16  conditions specified in Minnesota Statutes, section 351.02.  
 27.17     Subd. 5.  [TERMS OF OFFICE.] The terms of all board members 
 27.18  shall be for one, two, three, or four calendar years to be 
 27.19  determined in accordance with subdivision 2 by the governing 
 27.20  body selecting such member.  Terms shall expire on January 1 of 
 27.21  a calendar year, except that each member shall serve until a 
 27.22  successor has been duly selected and qualified.  
 27.23     Subd. 6.  [REMOVAL.] A board member may be removed by the 
 27.24  unanimous vote of the appointing governing body with or without 
 27.25  cause.  
 27.26     Subd. 7.  [QUALIFICATIONS.] Each board member may, but need 
 27.27  not be a resident of the district and may, but need not be an 
 27.28  elected public official.  
 27.29     Subd. 8.  [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 
 27.30  certificate of selection to a seat of every board member, 
 27.31  stating the seat's term, must be made by the respective 
 27.32  municipal clerk.  The certificate, with the approval attached by 
 27.33  other authority, if required, must be filled with the secretary 
 27.34  of state.  A copy must be furnished to the board member and the 
 27.35  secretary of the board.  Each member must qualify by taking and 
 27.36  subscribing to the oath of office prescribed by the Minnesota 
 28.1   Constitution, article V, section 6.  The oath, duly certified by 
 28.2   the official administering the same, must be filed with the 
 28.3   secretary of state and the secretary of the board. 
 28.4      Subd. 9.  [COMPENSATION OF BOARD MEMBERS.] Each board 
 28.5   member may be paid a per diem compensation to attend meetings 
 28.6   and for other services in an amount as may be specifically 
 28.7   authorized by the board from time to time.  Per diem 
 28.8   compensation must not exceed $4,000 for any member in any one 
 28.9   year.  All members of the board may be reimbursed for all 
 28.10  reasonable expenses incurred in the performance of their duties 
 28.11  as determined by the board.  
 28.12     Sec. 3.  [GENERAL PROVISION FOR ORGANIZATION AND OPERATION 
 28.13  OF BOARD.] 
 28.14     Subdivision 1.  [OFFICERS MEETINGS; SEAL.] A majority of 
 28.15  the members is a quorum at all meetings of the board, but a 
 28.16  lesser number may meet and adjourn from time to time and compel 
 28.17  the attendance of absent members.  The board must meet regularly 
 28.18  at the time and place as the board by resolution designates.  
 28.19  Special meetings may be held at any time upon call of the chair 
 28.20  or any two members, upon written notice sent by mail to each 
 28.21  member at least three days before the meeting, or upon the 
 28.22  notice as the board by resolution may provide, or without notice 
 28.23  if each member is present or files with the secretary a written 
 28.24  consent to the meeting either before or after the meeting.  
 28.25  Except as otherwise provided in this article, any action within 
 28.26  the authority of the board may be taken by the affirmative vote 
 28.27  of a majority of the board at a regular or adjourned regular 
 28.28  meeting or at a duly held special meeting, but in any case only 
 28.29  if a quorum is present.  All meetings of the board must be open 
 28.30  to the public as provided in Minnesota Statutes, chapter 13D.  
 28.31     Subd. 2.  [CHAIR.] The board must elect a chair from its 
 28.32  membership.  The term of the chair expires on January 1 of each 
 28.33  year.  The chair presides at all meetings of the board, if 
 28.34  present, and must perform all other duties and functions usually 
 28.35  incumbent upon the officer, and all administrative functions 
 28.36  assigned to the chair by the board.  The board must elect a 
 29.1   vice-chair from its membership to act for the chair during a 
 29.2   temporary absence or disability.  
 29.3      Subd. 3.  [SECRETARY AND TREASURER.] The board must select 
 29.4   one or more persons who may, but need not be a member of the 
 29.5   board, to act as its secretary and treasurer.  The secretary and 
 29.6   treasurer hold office at the pleasure of the board, subject to 
 29.7   the terms of any contract of employment that the board may enter 
 29.8   into with the secretary or treasurer.  The secretary must record 
 29.9   the minutes of all meetings of the board, and is custodian of 
 29.10  all books and records of the board except those the board 
 29.11  entrusts to the custody of a designated employee.  The board may 
 29.12  appoint a deputy to perform any and all functions of either the 
 29.13  secretary or the treasurer.  A secretary or treasurer or a 
 29.14  deputy of either who is not a member of the board shall not have 
 29.15  any right to vote.  
 29.16     Subd. 4.  [GENERAL MANAGER.] The board may appoint a 
 29.17  general manager who shall be selected solely upon the basis of 
 29.18  training, experience, and other qualifications.  The general 
 29.19  manager serves at the pleasure of the board and at a 
 29.20  compensation to be determined by the board.  The general manager 
 29.21  need not be a resident of the district and may also be selected 
 29.22  by the board to serve as either secretary or treasurer, or both, 
 29.23  of the board.  The general manager must attend all meetings of 
 29.24  the board but must not vote.  The general manager must:  
 29.25     (1) see that all resolutions, rules, regulations, or orders 
 29.26  of the board are enforced; 
 29.27     (2) appoint and remove, upon the basis of merit and 
 29.28  fitness, all subordinate officers and regular employees of the 
 29.29  board except the secretary and the treasurer and their deputies; 
 29.30     (3) present to the board plans, studies, and other reports 
 29.31  prepared for board purposes and recommend to the board for 
 29.32  adoption such measures as the general manager considers 
 29.33  necessary to enforce or carry out the powers and duties of the 
 29.34  board, or for the efficient administration of the affairs of the 
 29.35  board; 
 29.36     (4) keep the board fully advised as to its financial 
 30.1   condition, and prepare and submit to the board, and to the 
 30.2   governing bodies of the local government units, the board's 
 30.3   annual budget and other financial information the board 
 30.4   requests; 
 30.5      (5) recommend to the board for adoption rules recommended 
 30.6   as necessary for the efficient operation of a district disposal 
 30.7   system and all local sanitary sewer facilities over which the 
 30.8   board may assume responsibility as provided in section 17; and 
 30.9      (6) perform other duties as may be prescribed by the board. 
 30.10     Subd. 5.  [PUBLIC EMPLOYEES.] The general manager and all 
 30.11  persons employed by the general manager and public employees, 
 30.12  and have all the rights and duties conferred on public employees 
 30.13  under the Minnesota Public Employment Labor Relations Act.  The 
 30.14  compensation and conditions of employment of the employees is 
 30.15  not governed by any rule applicable to state employees in the 
 30.16  classified service or by Minnesota Statutes, chapter 15A, except 
 30.17  as specifically authorized by law. 
 30.18     Subd. 6.  [PROCEDURES.] The board must adopt resolutions or 
 30.19  bylaws establishing procedures for board action, personnel 
 30.20  administration, record keeping, investment policy, approving 
 30.21  claims, authorizing or making disbursements, safekeeping funds, 
 30.22  and audit of all financial operations of the board.  
 30.23     Subd. 7.  [SURETY BONDS AND INSURANCE.] The board may 
 30.24  procure surety bonds for its officers and employees in such 
 30.25  amounts as are considered necessary to assure proper performance 
 30.26  of their duties and proper accounting for funds in their custody.
 30.27  It may buy insurance against risks to property and liability of 
 30.28  the board and its officers, agents, and employees for personal 
 30.29  injuries or death and property damage and destruction in the 
 30.30  amounts as it considers necessary or desirable, with the force 
 30.31  and effect stated in Minnesota Statutes, chapter 466.  
 30.32     Sec. 4.  [COMPREHENSIVE PLAN.] 
 30.33     Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
 30.34  adopt a comprehensive plan for the collection, treatment, and 
 30.35  disposal of sewage in the district for designated periods that 
 30.36  the board considers proper and reasonable.  The board must 
 31.1   prepare and adopt subsequent comprehensive plans for the 
 31.2   collection, treatment, and disposal of sewage in the district 
 31.3   for each succeeding designated period as the board considers 
 31.4   proper and reasonable.  The plan must take into account the 
 31.5   preservation and best and most economic use of water and other 
 31.6   natural resources in the area; the preservation, use, and 
 31.7   potential for use of lands adjoining waters of the state to be 
 31.8   used for the disposal of sewage; and the impact such a disposal 
 31.9   system will have on present and future land use in the affected 
 31.10  area.  The plans shall include the following: 
 31.11     (1) the exact legal description of the boundaries of the 
 31.12  district; 
 31.13     (2) the general location of needed interceptors and 
 31.14  treatment works; 
 31.15     (3) a description of the area that is to be served by the 
 31.16  various interceptors and treatment works; 
 31.17     (4) a long-range capital improvements program; and 
 31.18     (5) such other details as the board deems appropriate. 
 31.19  In developing the plans, the board shall consult with persons 
 31.20  designated by the governing bodies of any municipal or public 
 31.21  corporation or governmental or political subdivision or agency 
 31.22  within or without the district to represent such entities and 
 31.23  shall consider the data, resources, and input offered to the 
 31.24  board by such entities and any planning agency acting on behalf 
 31.25  of one or more such entities.  Each plan, when adopted, must be 
 31.26  followed in the district and may be revised as often as the 
 31.27  board considers necessary.  
 31.28     Subd. 2.  [REPORT TO DOUGLAS COUNTY.] Upon adoption of any 
 31.29  comprehensive plan that establishes or reestablishes the 
 31.30  boundaries of the district, the board must supply the 
 31.31  appropriate Douglas county offices with the boundaries of the 
 31.32  district.  
 31.33     Subd. 3.  [COMPREHENSIVE PLANS; HEARING.] Before adopting 
 31.34  any later comprehensive plan, the board must hold a public 
 31.35  hearing on the proposed plan at the time and place in the 
 31.36  district it determines.  The hearing may be continued from time 
 32.1   to time.  Not less than 45 days before the hearing, the board 
 32.2   must publish notice of it in a newspaper or newspapers having 
 32.3   general circulation in the district stating the date, time, and 
 32.4   place of the hearing, and the place where the proposed plan may 
 32.5   be examined by any interested person.  At the hearing, all 
 32.6   interested persons must be permitted to present their views on 
 32.7   the plan.  
 32.8      Subd. 4.  [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITH 
 32.9   BOARD'S RESPONSIBILITIES.] Before undertaking the construction 
 32.10  of new sewers or other disposal facilities or the substantial 
 32.11  alteration or improvement of any existing sewers or other 
 32.12  disposal facilities, each local government unit may, and must if 
 32.13  the construction or alteration of any sewage disposal facilities 
 32.14  is contemplated by the government unit, adopt a comprehensive 
 32.15  plan and program for the collection, treatment, and disposal of 
 32.16  sewage for which the local government unit is responsible, 
 32.17  coordinated with the board's comprehensive plan, and may revise 
 32.18  the plan as often as deemed necessary.  Each local plan or 
 32.19  revision must be submitted to the board for review and is 
 32.20  subject to the approval of the board as to those features of the 
 32.21  plan affecting the board's responsibilities as determined by the 
 32.22  board.  Any features disapproved by the board must be modified 
 32.23  in accordance with the board's recommendations.  No construction 
 32.24  project involving those features may be undertaken by the local 
 32.25  government unit unless its governing body first finds the 
 32.26  project to be in accordance with the government unit's 
 32.27  comprehensive plan and program as approved by the board.  Before 
 32.28  approval by the board of the comprehensive plan and program of 
 32.29  any local government unit in the district, no construction 
 32.30  project may be undertaken by the government unit unless approval 
 32.31  of the project is first gotten from the board as to those 
 32.32  features of the project affecting the board's responsibilities 
 32.33  as determined by the board.  
 32.34     Sec. 5.  [SEWER SERVICE FUNCTION.] 
 32.35     Subdivision 1.  [DUTY OF BOARD; ACQUISITION OF EXISTING 
 32.36  FACILITIES; NEW FACILITIES.] At any time after the board has 
 33.1   become organized, it must assume ownership of all existing 
 33.2   interceptors and treatment works that are needed to implement 
 33.3   the board's comprehensive plan for the collection, treatment, 
 33.4   and disposal of sewage in the district, in the manner and 
 33.5   subject to the conditions prescribed in subdivision 2, and must 
 33.6   design, acquire, construct, better, equip, operate, and maintain 
 33.7   all additional interceptors and treatment works that will be 
 33.8   needed for this purpose.  The board must assume ownership of all 
 33.9   treatment works owned by a local government unit if any part of 
 33.10  those treatment works are so needed. 
 33.11     Subd. 2.  [METHOD OF ACQUISITION; EXISTING DEBT.] The board 
 33.12  may require any local government unit to transfer to the board 
 33.13  all of its right, title, and interest in any interceptors or 
 33.14  treatment works and all necessary appurtenances to them owned by 
 33.15  the local government unit that will be needed for the purpose 
 33.16  stated in subdivision 1.  Appropriate instruments of conveyance 
 33.17  for all the property must be executed and delivered to the board 
 33.18  by the proper officers of each local government unit concerned.  
 33.19  The board, upon assuming ownership of any of the interceptors or 
 33.20  treatment works, is obligated to pay to the local government 
 33.21  unit amounts sufficient to pay, when due, all remaining 
 33.22  principal of and interest on bonds issued by the local 
 33.23  government unit for the acquisition or betterment of the 
 33.24  interceptors or treatment works.  The board must also assume the 
 33.25  same obligation with respect to any other existing disposal 
 33.26  system owned by a local government unit that the board 
 33.27  determines to have been replaced or rendered useless by the 
 33.28  district disposal system.  The amounts to be paid under this 
 33.29  subdivision may be offset against any amount to be paid to the 
 33.30  board by the local government unit as provided in section 8.  
 33.31  The board is not obligated to pay the local government unit 
 33.32  anything in addition to the assumption of debt provided for in 
 33.33  this subdivision.  
 33.34     Subd. 3.  [EXISTING JOINT POWERS BOARD.] Effective December 
 33.35  31, 2004, or an earlier date as determined by the board, the 
 33.36  corporate existence of the joint powers board created by 
 34.1   agreement among local government units under Minnesota Statutes, 
 34.2   section 471.59, to provide the financing, acquisition, 
 34.3   construction, improvement, extension, operation, and maintenance 
 34.4   of facilities for the collection, treatment, and disposal of 
 34.5   sewage is terminated.  All persons regularly employed by the 
 34.6   joint powers board on that date become employees of the board, 
 34.7   and may at their option become members of the retirement system 
 34.8   applicable to persons employed directly by the board or may 
 34.9   continue as members of a public retirement association under any 
 34.10  other law, to which they belonged before that date, and retain 
 34.11  all pension rights that they may have the other law and all 
 34.12  other rights to which they are entitled by contract or law.  The 
 34.13  board must make the employer's contributions to pension funds of 
 34.14  its employees.  The employees must perform duties as may be 
 34.15  prescribed by the board.  On December 31, 2004, or the earlier 
 34.16  date, all funds of the joint powers board and all later 
 34.17  collections of taxes, special assessments, or service charges, 
 34.18  or any other sums due the joint powers board, or levied or 
 34.19  imposed by or for the joint powers board, must be transferred to 
 34.20  or made payable to the sanitary sewer board and the county 
 34.21  auditor must remit the sums to the board.  The local government 
 34.22  units otherwise entitled to the cash, taxes, assessments, or 
 34.23  service charges must be credited with the amounts, and the 
 34.24  credits must be offset against any amounts to be paid by them to 
 34.25  the board as provided in section 8.  On December 31, 2004, or 
 34.26  the earlier chosen date, the board shall succeed to and become 
 34.27  vested with all right, title, and interest in and to any 
 34.28  property, real or personal, owned or operated by the joint 
 34.29  powers board.  Before that date, the proper officers of the 
 34.30  joint powers board must execute and deliver to the sanitary 
 34.31  sewer board all deeds, conveyances, bills of sale, and other 
 34.32  documents or instruments required to vest in the board good and 
 34.33  marketable title to all the real or personal property, but this 
 34.34  article operates as the transfer and conveyance to the board of 
 34.35  the real or personal property, if not transferred, as may be 
 34.36  required under the law or under the circumstances.  On December 
 35.1   31, 2004, or the earlier chosen date, the board is obligated to 
 35.2   pay or assume all outstanding bonds or other debt and all 
 35.3   contracts or obligations incurred by the joint powers board, and 
 35.4   all bonds, obligations, or debts of the joint powers board 
 35.5   outstanding on the date this article is effective, are validated.
 35.6      Subd. 4.  [CONTRACTS BETWEEN LOCAL GOVERNMENT UNITS.] The 
 35.7   board may terminate, upon 60 days' mailed notice to the 
 35.8   contracting parties, any existing contract between or among 
 35.9   local government units requiring payments by a local government 
 35.10  unit to any other local government unit for the use of a 
 35.11  disposal system, or as reimbursement of capital costs of a 
 35.12  disposal system, all or part of which are needed to implement 
 35.13  the board's comprehensive plan.  All contracts between or among 
 35.14  local government units for use of a disposal system entered into 
 35.15  after the date on which this article becomes effective must be 
 35.16  submitted to the board for approval as to those features 
 35.17  affecting the board's responsibilities as determined by the 
 35.18  board and are not effective until the approval is given.  
 35.19     Sec. 6.  [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 
 35.20     Subdivision 1.  [POWERS.] In addition to all other powers 
 35.21  conferred upon the board in this article, the board has the 
 35.22  powers specified in this section. 
 35.23     Subd. 2.  [DISCHARGE OF TREATED SEWAGE.] The board may 
 35.24  discharge the effluent from any treatment works operated by it 
 35.25  into any waters of the state, subject to approval of the agency 
 35.26  if required and in accordance with any effluent or water quality 
 35.27  standards lawfully adopted by the agency, any interstate agency, 
 35.28  or any federal agency having jurisdiction.  
 35.29     Subd. 3.  [USE OF DISTRICT SYSTEM.] The board may require 
 35.30  any person or local government unit to provide for the discharge 
 35.31  of any sewage, directly or indirectly, into the district 
 35.32  disposal system, or to connect any disposal system or a part of 
 35.33  it with the district disposal system wherever reasonable 
 35.34  opportunity is provided; may regulate the manner in which the 
 35.35  connections are made; may require any person or local government 
 35.36  unit discharging sewage into the disposal system to provide 
 36.1   preliminary treatment for it; may prohibit the discharge into 
 36.2   the district disposal system of any substance it determines will 
 36.3   or may be harmful to the system or any persons operating it; may 
 36.4   prohibit any extraneous flow into the system; and may require 
 36.5   any local government unit to discontinue the acquisition, 
 36.6   betterment, or operation of any facility for the unit's disposal 
 36.7   system wherever and so far as adequate service is or will be 
 36.8   provided by the district disposal system.  
 36.9      Sec. 7.  [BUDGET.] 
 36.10     Except as otherwise specifically provided in this article, 
 36.11  the board is subject to Minnesota Statutes, section 275.065, the 
 36.12  Truth in Taxation Act.  The board shall prepare and adopt, on or 
 36.13  before September 15 of each year, a budget showing for the 
 36.14  following calendar year or other fiscal year determined by the 
 36.15  board, sometimes referred to in this article as the budget year, 
 36.16  estimated receipts of money from all sources, including but not 
 36.17  limited to, payments by each local government unit, federal or 
 36.18  state grants, taxes on property, and funds on hand at the 
 36.19  beginning of the year, and estimated expenditures for:  
 36.20     (1) costs of operation, administration, and maintenance of 
 36.21  the district disposal system; 
 36.22     (2) cost acquisition and betterment of the district 
 36.23  disposal system; and 
 36.24     (3) debt service, including principal and interest, on 
 36.25  general obligation bonds and certificates issued under section 
 36.26  12, obligations and debts assumed under section 5, subdivisions 
 36.27  2 and 3, and any money judgments entered by a court of competent 
 36.28  jurisdiction.  Expenditures within these general categories, and 
 36.29  others that the board may from time to time determine, must be 
 36.30  itemized in the detail the board prescribes.  The board and its 
 36.31  officers, agents, and employees must not spend money for any 
 36.32  purpose other than debt service without having set forth the 
 36.33  expense in the budget, nor may they spend in excess of the 
 36.34  amount in the budget, and an excess expenditure or one for an 
 36.35  unauthorized purpose is enforceable except as the obligation of 
 36.36  the person incurring it; but the board may amend the budget at 
 37.1   any time by transferring from one budgetary purpose to another 
 37.2   any sums, except money for debt service and bond proceeds, or by 
 37.3   increasing expenditures in any amount by which cash receipts 
 37.4   during the budget year actually exceed the total amounts 
 37.5   designated in the original budget.  The creation of any 
 37.6   obligation pursuant to section 12 or the receipts of any federal 
 37.7   or state grant is a sufficient budget designation of the 
 37.8   proceeds for the purpose for which it is authorized, and of the 
 37.9   tax or other revenue pledged to pay the obligation and interest 
 37.10  on it, whether or not specifically included in any annual budget.
 37.11     Sec. 8.  [ALLOCATION OF COSTS.] 
 37.12     Subdivision 1.  [DEFINITION OF CURRENT COSTS.] The 
 37.13  estimated cost of administration, operation, maintenance, and 
 37.14  debt service of the district disposal system to be paid by the 
 37.15  board in each fiscal year and the estimated costs of acquisition 
 37.16  and betterment of the system that are to be paid during the year 
 37.17  from funds other than state or federal grants and bond proceeds 
 37.18  and all other previously unallocated payments made by the board 
 37.19  under this article in the fiscal year are referred to as current 
 37.20  costs.  
 37.21     Subd. 2.  [COLLECTION OF CURRENT COSTS.] Current costs 
 37.22  shall be collected as described in paragraphs (a) and (b).  
 37.23     (a) Current costs may be allocated to local government 
 37.24  units in the district on an equitable basis as the board may 
 37.25  from time to time determine by resolution to be fair and 
 37.26  reasonable and in the best interests of the district.  In making 
 37.27  the allocation, the board may provide for the deferment of 
 37.28  payment of all or part of current costs, the reallocation of 
 37.29  deferred costs, and the reimbursement of reallocated deferred 
 37.30  costs on an equitable basis as the board may from time to time 
 37.31  determine by resolution to be fair and reasonable and in the 
 37.32  best interests of the district.  The adoption or revision of a 
 37.33  method of allocation, deferment, reallocation, or reimbursement 
 37.34  used by the board shall be made by the affirmative vote of at 
 37.35  least two-thirds of the members of the board.  
 37.36     (b) Upon approval of at least two-thirds of the members of 
 38.1   the board, the board may provide for direct collection of 
 38.2   current costs by monthly or other periodic billing of sewer 
 38.3   users.  
 38.4      Sec. 9.  [GOVERNMENT UNITS; PAYMENTS TO BOARD.] 
 38.5      Subdivision 1.  [OBLIGATIONS OF GOVERNMENT UNITS TO THE 
 38.6   BOARD.] Each government unit must pay to the board all sums 
 38.7   charged to it as provided in section 8, at the times and in the 
 38.8   manner determined by the board.  The governing body of each 
 38.9   government unit must take all action necessary to provide the 
 38.10  funds required for the payments and to make the payments when 
 38.11  due.  
 38.12     Subd. 2.  [AMOUNTS DUE BOARD; WHEN PAYABLE.] Charges 
 38.13  payable to the board by local government units may be made 
 38.14  payable at the times during each year as the board determines, 
 38.15  after it has taken into account the dates on which taxes, 
 38.16  assessments, revenue collections, and other funds become 
 38.17  available to the government unit required to pay such charges.  
 38.18     Subd. 3.  [GENERAL POWERS OF GOVERNMENT UNITS; LOCAL TAX 
 38.19  LEVIES.] To accomplish any duty imposed on it by the board, the 
 38.20  governing body of every government unit may, in addition to the 
 38.21  powers granted in this article and in any other law or charter, 
 38.22  exercise the powers granted any municipality by Minnesota 
 38.23  Statutes, chapters 117, 412, 429, and 475, and sections 115.46, 
 38.24  444.075, and 471.59, with respect to the area of the government 
 38.25  unit located in the district.  In addition, the governing body 
 38.26  of every government unit located in whole or in part within the 
 38.27  district may levy taxes upon all taxable property in that part 
 38.28  of the government unit located in this district for all or a 
 38.29  part of the amount payable to the board.  If the levy is for 
 38.30  only part of the amount payable to the board, the governing body 
 38.31  of the government unit may levy additional taxes on the entire 
 38.32  net tax capacity of all taxable property of the government unit 
 38.33  for all or a part of the balance remaining payable.  The taxes 
 38.34  levied under this subdivision must be assessed and extended as a 
 38.35  tax upon the taxable property by the county auditor for the next 
 38.36  calendar year, free from any limit of rate or amount imposed by 
 39.1   law or charter.  The tax must be collected and remitted in the 
 39.2   same manner as other general taxes of the government unit. 
 39.3      Subd. 4.  [ALTERNATE LEVY.] In place of levying taxes on 
 39.4   all taxable property under subdivision 3, the governing body of 
 39.5   the government unit may elect to levy taxes upon the net tax 
 39.6   capacity of all taxable property, except agricultural property, 
 39.7   and upon only 25 percent of the net tax capacity of all 
 39.8   agricultural property, in that part of the government unit 
 39.9   located in the district for all or a part of the amount payable 
 39.10  to the board.  If the levy is for only part of the amount 
 39.11  payable to the board, the governing body may levy additional 
 39.12  taxes on the entire net tax capacity of all the property, 
 39.13  including agricultural property, for all or a part of the 
 39.14  balance.  The taxes must be assessed and extended as a tax upon 
 39.15  the taxable property by the county auditor for the next calendar 
 39.16  year, free from any limit of rate or amount imposed by law or 
 39.17  charter, and must be collected and remitted in the same manner 
 39.18  as other general taxes of the government unit.  In computing the 
 39.19  tax capacity under this subdivision, the county auditor must 
 39.20  include only 25 percent of the net tax capacity of all taxable 
 39.21  agricultural property and 100 percent of the net tax capacity of 
 39.22  all other taxable property in that part of the government unit 
 39.23  located within the district and, in spreading the levy, the 
 39.24  auditor must apply the mill rate upon the same percentages of 
 39.25  agricultural and nonagricultural taxable property.  If the 
 39.26  government unit elects to levy taxes under this subdivision and 
 39.27  any of the taxable agricultural property is reclassified so as 
 39.28  to no longer qualify as agricultural property, it is subject to 
 39.29  additional taxes.  The additional taxes must be in an amount 
 39.30  which, together with any additional taxes previously levied and 
 39.31  the estimated collection of additional taxes subsequently levied 
 39.32  on any other reclassified property, is determined by the 
 39.33  governing body of the government unit to be at least sufficient 
 39.34  to reimburse each other government unit for any excess current 
 39.35  costs reallocated to it as a result of the board deferring any 
 39.36  current cost under section 8 on account of the difference 
 40.1   between the amount of the current costs initially allocated to 
 40.2   each government unit based on the total net tax capacity of all 
 40.3   taxable property in the district and the amount of the current 
 40.4   costs reallocated to each government unit based on 25 percent of 
 40.5   the net tax capacity of agricultural property and 100 percent of 
 40.6   the net tax capacity of all other taxable property in the 
 40.7   district.  Any reimbursement must be made on terms which the 
 40.8   board determines to be just and reasonable.  These additional 
 40.9   taxes may be levied in any greater amount as the governing body 
 40.10  of the government unit determines to be appropriate, but the 
 40.11  total amount of the additional taxes must not exceed the 
 40.12  difference between: 
 40.13     (1) the total amount of taxes that would have been levied 
 40.14  upon the reclassified property to help pay current costs charged 
 40.15  in each year to the government unit by the board if that part of 
 40.16  the costs, if any, initially allocated by the board solely on 
 40.17  the basis of 100 percent of the net tax capacity of all taxable 
 40.18  property in the district and then reallocated on the basis of 
 40.19  inclusion of only 25 percent of the net tax capacity of 
 40.20  agricultural property in the district was not reallocated and if 
 40.21  the amount of taxes levied by the government unit each year 
 40.22  under this subdivision to pay current costs had been based on 
 40.23  the initial allocation and had been imposed upon 100 percent of 
 40.24  the net tax capacity of all taxable property, including 
 40.25  agricultural property, in that part of the government unit 
 40.26  located in the district; and 
 40.27     (2) the amount of taxes levied each year under this 
 40.28  subdivision upon reclassified property, plus interest on the 
 40.29  cumulative amount of the difference accruing each year at the 
 40.30  approximate average annual rate borne by bonds issued by the 
 40.31  board and outstanding at the beginning of the year or, if no 
 40.32  bonds are then outstanding, at a rate of interest which may be 
 40.33  determined by the board, but not exceeding the maximum rate of 
 40.34  interest that may then be paid on bonds issued by the board.  
 40.35  The additional taxes are a lien upon the reclassified property 
 40.36  assessed in the same manner and for the same duration as all 
 41.1   other ad valorem taxes levied upon the property.  The additional 
 41.2   taxes must be extended against the reclassified property on the 
 41.3   tax list for the current year and must be collected and remitted 
 41.4   in the same manner as other general taxes of the government 
 41.5   unit.  No penalties or additional interest may be levied on the 
 41.6   additional taxes if timely paid. 
 41.7      Subd. 5.  [DEBT LIMIT.] Any ad valorem taxes levied under 
 41.8   subdivision 3, by the governing body of a government unit to pay 
 41.9   any sums charged to it by the board pursuant to this article are 
 41.10  not subject to, or counted toward, any limit imposed by law on 
 41.11  the levy of taxes upon taxable property within any governmental 
 41.12  unit. 
 41.13     Subd. 6.  [DEFICIENCY TAX LEVIES.] If the local government 
 41.14  unit fails to make a payment to the board when due, the board 
 41.15  may certify to the Douglas county auditor the amount required 
 41.16  for payment, with interest at not more than the maximum rate per 
 41.17  year authorized at that time on assessments under Minnesota 
 41.18  Statutes, section 429.061, subdivision 2.  The auditor must levy 
 41.19  and extend the amount as a tax upon all taxable property in that 
 41.20  part of the government unit located in the district, for the 
 41.21  next calendar year, free from any limits imposed by law or 
 41.22  charter.  The tax must be collected in the same manner as other 
 41.23  general taxes of the government unit, and the proceeds, when 
 41.24  collected, shall be paid by the county treasurer to the 
 41.25  treasurer of the board and credited to the government unit for 
 41.26  which the tax was levied. 
 41.27     Sec. 10.  [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 
 41.28     Subdivision 1.  [PUBLIC HEARING REQUIREMENT ON SPECIFIC 
 41.29  PROJECT.] Before the board orders any project involving the 
 41.30  acquisition or betterment of any interceptor or treatment works, 
 41.31  all or a part of the cost of which will be allocated to local 
 41.32  government units under section 8 as current costs, the board 
 41.33  must hold a public hearing on the proposed project following two 
 41.34  publications in a newspaper or newspapers having general 
 41.35  circulation in the district, stating the time and place of the 
 41.36  hearing, the general nature and location of the project, the 
 42.1   estimated total cost of acquisition and betterment, that portion 
 42.2   of costs estimated to be paid out of federal and state grants, 
 42.3   and that portion of costs estimated to be allocated to each 
 42.4   local government unit affected.  The two publications must be a 
 42.5   week apart and the hearing must be at least three days after the 
 42.6   last publication.  Not less than 45 days before the hearing, 
 42.7   notice must also be mailed to each clerk of all local government 
 42.8   units in the district, but failure to give mailed notice of any 
 42.9   defects in the notice does not invalidate the proceedings.  The 
 42.10  project may include all or part of one or more interceptors or 
 42.11  treatment works.  A hearing is not required with respect to a 
 42.12  project, no part of the costs of which are to be allocated to 
 42.13  local government units as the current cost of acquisition, 
 42.14  betterment, and debt service.  
 42.15     Subd. 2.  [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 
 42.16  governing body of a local government unit in the district 
 42.17  proposes to assess against benefited property within units, all 
 42.18  or any part of the allocable costs of the project as provided in 
 42.19  subdivision 5, the governing body must, not less than ten days 
 42.20  before the hearing provided for in subdivision 1 mail a notice 
 42.21  of the hearing to the owner of each parcel within the area 
 42.22  proposed to be specially assessed and must also give one week's 
 42.23  published notice of the hearing.  The notice of hearing must 
 42.24  contain the same information provided in the notice published by 
 42.25  the board under subdivision 1, and in addition, a description of 
 42.26  the area proposed to be assessed by the local government unit.  
 42.27  To give mailed notice, owners must be those shown to be on the 
 42.28  records of the county auditor or, in a county where tax 
 42.29  statements are mailed by the county treasurer, on the records of 
 42.30  the county treasurer; but other appropriate records may be used 
 42.31  for this purpose.  However, for properties that are tax exempt 
 42.32  or subject to taxation on a gross earnings basis and are not 
 42.33  listed on the records of the county auditor or the county 
 42.34  treasurer, the owners may be ascertained by any practicable 
 42.35  means and mailed notice must be given to them.  Failure to give 
 42.36  mailed notice or any defects in the notice does not invalidate 
 43.1   the proceedings of the board or the local governing body.  
 43.2      Subd. 3.  [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 
 43.3   adoption of the resolution calling for the hearing, the board 
 43.4   shall get from the district engineer, or other competent person 
 43.5   of the board's selection, a preliminary report advising whether 
 43.6   the proposed project is feasible, necessary, and cost-effective, 
 43.7   and whether it should best be made as proposed or in connection 
 43.8   with another project, and the estimated costs of the project as 
 43.9   recommended.  No error or omission in the report invalidates the 
 43.10  proceeding.  The board may also take steps before the hearing 
 43.11  that will, in its judgment, provide helpful information in 
 43.12  determining the desirability and feasibility of the project 
 43.13  including, but not limited to, preparation of plans and 
 43.14  specifications and advertisement for bids.  The hearing may be 
 43.15  adjourned from time to time and a resolution ordering the 
 43.16  project may be adopted at any time within six months after the 
 43.17  date of hearing.  In ordering the project, the board may reduce 
 43.18  but not increase the extent of the project as stated in the 
 43.19  notice of hearing, unless another hearing is held, and must find 
 43.20  that the project as ordered is in accordance with the 
 43.21  comprehensive plan and program adopted by the board under 
 43.22  section 4.  
 43.23     Subd. 4.  [EMERGENCY ACTION.] If the board by resolution 
 43.24  adopted by the affirmative vote of not less than two-thirds of 
 43.25  its members determines that an emergency exists requiring the 
 43.26  immediate purchase of materials or supplies or the making of 
 43.27  emergency repairs, it may order the purchase of the supplies and 
 43.28  materials and the making of the repairs before any hearing 
 43.29  required under this section.  But the board must set as early a 
 43.30  date as practicable for that hearing at the time it declares the 
 43.31  emergency.  All other provisions of this section must be 
 43.32  followed in giving notice of and conducting a hearing.  This 
 43.33  subdivision does not prevent the board or its agents from 
 43.34  purchasing maintenance supplies or incurring maintenance costs 
 43.35  without regard to the requirements of this section.  
 43.36     Subd. 5.  [POWER OF GOVERNMENT UNIT TO SPECIALLY ASSESS.] A 
 44.1   local government unit may specially assess all or part of the 
 44.2   costs of acquisition and betterment of any project ordered by 
 44.3   the board under this section.  A special assessment must be 
 44.4   levied in accordance with Minnesota Statutes, sections 429.051 
 44.5   to 429.081, except as otherwise provided in this subdivision.  
 44.6   No other provisions of Minnesota Statutes, chapter 429, apply.  
 44.7   For purposes of levying special assessments, the hearing on the 
 44.8   project required in subdivision 1 must serve as the hearing on 
 44.9   the making of the original improvement provided for by Minnesota 
 44.10  Statutes, section 429.051.  The area assessed may be less than 
 44.11  but must not exceed the area proposed to be assessed as stated 
 44.12  in the notice of hearing on the project provided for in 
 44.13  subdivision 2.  To determine the allocable cost of the project 
 44.14  to the local government units, the government unit may adopt one 
 44.15  of the procedures in paragraph (a) or (b).  
 44.16     (a) At any time after a contract is let for the project, 
 44.17  the local government unit may get from the board a current 
 44.18  written estimate, on the basis of historical and reasonably 
 44.19  projected data, of that part of the total cost of acquisition 
 44.20  and betterment of the project or of some part of the project 
 44.21  that will be allocated to the local government unit and the 
 44.22  number of years over which such costs will be allocated as 
 44.23  current costs of acquisition, betterment, and debt service under 
 44.24  section 8.  The board is not bound by this estimate for 
 44.25  allocating the costs of the project to local government units. 
 44.26     (b) The governing body may get from the board a written 
 44.27  statement showing, for the prior period that the governing body 
 44.28  designates, that part of the costs previously allocated to the 
 44.29  local government unit as current costs of acquisition, 
 44.30  betterment, and debt service only, of all or any part of the 
 44.31  project designated by the governing body.  In addition to the 
 44.32  allocable costs, the local government unit may include in the 
 44.33  total expense, as a basis for levying assessments, all other 
 44.34  expenses incurred directly by the local government unit in 
 44.35  connection with the project.  Special assessments levied by the 
 44.36  government unit with respect to previously allocated costs 
 45.1   ascertained under this paragraph are payable in equal annual 
 45.2   installments extending over a period not exceeding by more than 
 45.3   one year the number of years that the costs have been allocated 
 45.4   to the local government unit or the estimated useful life of the 
 45.5   project, or part of the project, whichever number of years is 
 45.6   the lesser.  No limit is placed on the number of times the 
 45.7   governing body of a local government unit may assess the 
 45.8   previously allocated costs not previously assessed by the 
 45.9   government unit.  The power to specially assess provided for in 
 45.10  this section is in addition and supplemental to all other powers 
 45.11  of local government units to levy special assessments. 
 45.12     Sec. 11.  [INITIAL COSTS.] 
 45.13     Subdivision 1.  [CONTRIBUTIONS OR ADVANCES FROM LOCAL 
 45.14  GOVERNMENT UNITS.] The board may, at the time it considers 
 45.15  necessary and proper, request from a local government unit 
 45.16  necessary money to defray the costs of any obligations assumed 
 45.17  under section 5 and the costs of administration, operation, and 
 45.18  maintenance.  Before making a request, the board must, by formal 
 45.19  resolution, determine the necessity for the money, setting forth 
 45.20  the purposes for which the money is needed and the estimated 
 45.21  amount for each purpose.  Upon receiving a request, the 
 45.22  governing body of each local government unit may provide for 
 45.23  payment of the amount requested as it considers fair and 
 45.24  reasonable.  The money may be paid out of general revenue funds 
 45.25  or any other available funds of any local government unit and 
 45.26  its governing body thereof may levy taxes to provide funds, free 
 45.27  from any existing limit imposed by law or charter.  Money may be 
 45.28  provided by government units with or without interest, but if 
 45.29  interest is charged it must not exceed five percent per year.  
 45.30  The board must credit the local government unit for the payments 
 45.31  in allocating current costs under section 8, on the terms and at 
 45.32  the times as are agreed to with the local government unit. 
 45.33     Subd. 2.  [LIMITED TAX LEVY.] The board may levy ad valorem 
 45.34  taxes on all taxable property in the district to defray any of 
 45.35  the costs described in subdivision 1, provided the costs have 
 45.36  not been defrayed by contribution under subdivision 1.  Before 
 46.1   certifying a levy to the county auditor, the board must 
 46.2   determine the need for the money to be derived from the levy by 
 46.3   formal resolution setting forth the purposes for which the tax 
 46.4   money will be used and the amount proposed to be used for each 
 46.5   purpose.  In allocating current costs under section 8, the board 
 46.6   must credit the government units for taxes collected under the 
 46.7   levy made under this subdivision on the terms and at the time 
 46.8   the board considers fair and reasonable and on terms consistent 
 46.9   with section 8, subdivision 2. 
 46.10     Sec. 12.  [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 
 46.11     Subdivision 1.  [BUDGET ANTICIPATION CERTIFICATES OF 
 46.12  INDEBTEDNESS.] (a) Before adopting its annual budget and in 
 46.13  anticipation of the collection of tax and other revenues 
 46.14  estimated and set forth by the board in the budget, the board 
 46.15  may by resolution, authorize the issuance, negotiation, and sale 
 46.16  in accordance with subdivision 5 in such form and manner and 
 46.17  upon such terms as it may determine of its negotiable general 
 46.18  obligation certificates of indebtedness in aggregate principal 
 46.19  amounts not exceeding 50 percent of the total amount of such tax 
 46.20  collections and other revenues and maturing not later than three 
 46.21  months after the close of the budget year in which issued.  
 46.22  Revenues listed in clauses (1) to (3) must not be anticipated 
 46.23  for this purpose: 
 46.24     (1) taxes already anticipated by the issuance of 
 46.25  certificates under subdivision 2; 
 46.26     (2) deficiency taxes levied pursuant to this subdivision; 
 46.27  and 
 46.28     (3) taxes levied for the payment of certificates issued 
 46.29  pursuant to subdivision 3. 
 46.30     (b) The proceeds of the sale of the certificates must be 
 46.31  used only for the purposes for which tax collections and other 
 46.32  revenues are to be expended under the budget. 
 46.33     (c) All tax collections and other revenues included in the 
 46.34  budget for the budget year, after the expenditures of tax 
 46.35  collections and other revenues in accordance with the budget, 
 46.36  must be irrevocably pledged and appropriated to a special fund 
 47.1   to pay the principal and interest on the certificates when due.  
 47.2      (d) If for any reason the tax collections and other 
 47.3   revenues are insufficient to pay the certificates and interest 
 47.4   when due, the board must levy a tax in the amount of the 
 47.5   deficiency on all taxable property in the district and must 
 47.6   appropriate this amount when received to the special fund.  
 47.7      Subd. 2.  [TAX LEVY ANTICIPATION CERTIFICATES OF 
 47.8   INDEBTEDNESS.] After a tax is levied by the board under section 
 47.9   11, subdivision 2, and certified to the county auditors in 
 47.10  anticipation of the collection of the tax, if the tax has not 
 47.11  been anticipated by the issuance of certificates under 
 47.12  subdivision 1, the board may, by resolution, authorize the 
 47.13  issuance, negotiation, and sale in accordance with subdivision 5 
 47.14  in the form and manner and on the terms and conditions as it 
 47.15  determines its negotiable general obligation tax levy 
 47.16  anticipation certificates of indebtedness in aggregate principal 
 47.17  amounts not exceeding 50 percent of the uncollected tax for 
 47.18  which no penalty for nonpayment or delinquency has been 
 47.19  attached.  The certificates must mature not later than April 1 
 47.20  in the year after the year in which the tax is collectible.  The 
 47.21  proceeds of the tax in anticipation of which the certificates 
 47.22  were issued and other funds that may become available must be 
 47.23  applied to the extent necessary to repay the certificates.  
 47.24     Subd. 3.  [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 
 47.25  any budget year the receipts of tax and other revenues for some 
 47.26  unforeseen cause become insufficient to pay the board's current 
 47.27  expenses, or if any calamity or other public emergency subjects 
 47.28  it to the necessity of making extraordinary expenditures, the 
 47.29  board may by resolution authorize the issuance, negotiation, and 
 47.30  sale in accordance with subdivision 5 in the form and manner and 
 47.31  on the terms and conditions as it may determine of its 
 47.32  negotiable general obligation certificates of indebtedness in an 
 47.33  amount sufficient to meet the deficiency, and the board must 
 47.34  levy on all taxable property in the district a tax sufficient to 
 47.35  pay the certificates and interest and shall appropriate all 
 47.36  collections of the tax to a special fund created for the payment 
 48.1   of the certificates and interest. 
 48.2      Subd. 4.  [GENERAL OBLIGATION BONDS.] The board may by 
 48.3   resolution authorize the issuance of general obligation bonds 
 48.4   maturing serially in one or more annual or semiannual 
 48.5   installments for the acquisition or betterment of any part of 
 48.6   the district disposal system, including but not limited to, the 
 48.7   payment of interest during construction and for a reasonable 
 48.8   period thereafter, or for the refunding of outstanding bonds, 
 48.9   certificates of indebtedness, or judgments.  The board must 
 48.10  pledge its full faith and credit and taxing power for the 
 48.11  payment of the bonds and shall provide for the issuance and sale 
 48.12  and for the security of the bonds in the manner provided in 
 48.13  Minnesota Statutes, chapter 475, and must have the same powers 
 48.14  and duties as a municipality issuing bonds under that law.  An 
 48.15  election is not required to authorize the issuance of bonds and 
 48.16  the debt limit of Minnesota Statutes, chapter 475, do not apply 
 48.17  to the bonds.  The board may also pledge for the payment of the 
 48.18  bonds and deduct from the amount of any tax levy required under 
 48.19  Minnesota Statutes, section 475.61, subdivision 1, any sums 
 48.20  receivable under section 9 or any state and federal grants 
 48.21  anticipated by the board and may covenant to refund the bonds if 
 48.22  and when and to the extent that for any reason the revenues, 
 48.23  together with other funds properly available and appropriated 
 48.24  for the purpose, are not sufficient to pay all principal and 
 48.25  interest due or about to become due; if the revenues have not 
 48.26  been anticipated by the issuance of certificates under 
 48.27  subdivision 1.  All bonds that have been or shall hereafter be 
 48.28  issued and sold in conformity with the provisions of this 
 48.29  subdivision, and otherwise in conformity with law, are hereby 
 48.30  authorized, legalized, and validated. 
 48.31     Subd. 5.  [MANNER OF SALE AND ISSUANCE OF 
 48.32  CERTIFICATES.] Certificates issued under subdivisions 1, 2, and 
 48.33  3 may be issued and sold by negotiation, without public sale, 
 48.34  and may be sold at a price equal to the percentage of their par 
 48.35  value, plus accrued interest, and bearing interest at the rate 
 48.36  or rates as may be determined by the board.  No election is 
 49.1   required to authorize the issuance of certificates.  
 49.2   Certificates must bear the same rate of interest after maturity 
 49.3   as before and the full faith and credit and taxing power of the 
 49.4   board must be pledged to the payment of the certificates.  
 49.5      Sec. 13.  [TAX LEVIES.] 
 49.6      The board may levy taxes to pay the bonds or other 
 49.7   obligations assumed by the district under section 5 and for debt 
 49.8   service of the district disposal system authorized in section 12 
 49.9   upon all taxable property within the district without limit of 
 49.10  rate or amount and without affecting the amount or rate of taxes 
 49.11  that may be levied by the board for other purposes or by any 
 49.12  local government unit in the district.  No other provision of 
 49.13  law relating to debt limit shall restrict or in any way limit 
 49.14  the power of the board to issue the bonds and certificates 
 49.15  authorized in section 12.  The board may also levy taxes as 
 49.16  provided in sections 9 and 11.  The county auditor must annually 
 49.17  assess and extend upon the tax rolls the part of the taxes 
 49.18  levied by the board in each year that is certified to the 
 49.19  auditor by the board.  The county treasurer must collect and 
 49.20  make settlement of the taxes with the treasurer of the board. 
 49.21     Sec. 14.  [DEPOSITORIES.] 
 49.22     The board must from time to time designate one or more 
 49.23  national or state banks or trust companies authorized to do a 
 49.24  banking business as official depositories for money of the 
 49.25  board, and must require the treasurer to deposit all or a part 
 49.26  of the money in those institutions.  The designation must be in 
 49.27  writing and must set forth all the terms and conditions on which 
 49.28  the deposits are made, and must be signed by the chair and 
 49.29  treasurer, and made a part of the minutes of the board.  A 
 49.30  designated bank or trust company must qualify as a depository by 
 49.31  furnishing a corporate surety bond or collateral in the amount 
 49.32  required by Minnesota Statutes, section 118A.03.  But, no bond 
 49.33  or collateral is required to secure any deposit insofar as it is 
 49.34  insured under federal law. 
 49.35     Sec. 15.  [MONEY; ACCOUNTS AND INVESTMENTS.] 
 49.36     Subdivision 1.  [RECEIPT AND APPLICATION.] All money 
 50.1   received by the board must be deposited or invested by the 
 50.2   treasurer and disposed of as the board directs in accordance 
 50.3   with its budget.  But any money that has been pledged or 
 50.4   dedicated by the board to the payment of obligations or interest 
 50.5   on them or expenses incident to them, or for any other specific 
 50.6   purpose authorized by law, must be paid by the treasurer into 
 50.7   the fund to which they have been pledged.  
 50.8      Subd. 2.  [FUNDS AND ACCOUNTS.] The board's treasurer must 
 50.9   establish funds and accounts as necessary or convenient to 
 50.10  handle the receipts and disbursements of the board in an orderly 
 50.11  fashion.  
 50.12     Subd. 3.  [DEPOSIT AND INVESTMENT.] The money on hand in 
 50.13  the board's funds and accounts may be deposited in the official 
 50.14  depositories of the board or invested as provided in this 
 50.15  subdivision.  The amount not currently needed or required by law 
 50.16  to be kept in cash on deposit may be invested in obligations 
 50.17  authorized by law for the investment of municipal sinking 
 50.18  funds.  The money may also be held under certificates of deposit 
 50.19  issued by any official depository of the board.  All investments 
 50.20  by the board must conform to an investment policy adopted by the 
 50.21  board as amended from time to time.  
 50.22     Subd. 4.  [BOND PROCEEDS.] The use of proceeds of all bonds 
 50.23  issued by the board for the acquisition and betterment of the 
 50.24  district disposal system, and the use, other than investment, of 
 50.25  all money on hand in any sinking fund or funds of the board must 
 50.26  be governed by Minnesota Statutes, chapter 475, this article, 
 50.27  and the resolutions authorizing the issuance of the bonds.  The 
 50.28  bond proceeds, when received, must be transferred to the 
 50.29  treasurer of the board for safekeeping, investment, and payment 
 50.30  of the costs for which they were issued.  
 50.31     Subd. 5.  [AUDIT.] The board must provide for and pay the 
 50.32  cost of an independent annual audit of its official books and 
 50.33  records by the state auditor or a certified public accountant.  
 50.34     Sec. 16.  [GENERAL POWERS OF BOARD.] 
 50.35     Subdivision 1.  [ALL NECESSARY OR CONVENIENT POWERS.] The 
 50.36  board has powers necessary or convenient to discharge the duties 
 51.1   imposed upon it by law.  The powers include those specified in 
 51.2   this article, but the express grant or enumeration of powers 
 51.3   does not limit the generality or scope of the grant of power in 
 51.4   this subdivision. 
 51.5      Subd. 2.  [LAWSUITS.] The board may sue or be sued.  
 51.6      Subd. 3.  [CONTRACTS.] The board may enter into any 
 51.7   contract necessary or proper for the exercise of its powers or 
 51.8   the accomplishment of its purposes.  
 51.9      Subd. 4.  [RULES.] The board may adopt rules relating to 
 51.10  the board's responsibilities and may provide penalties not 
 51.11  exceeding the maximum penalty specified for a misdemeanor, and 
 51.12  the cost of prosecution may be added to the penalties imposed.  
 51.13  Any rule prescribing a penalty for violation must be published 
 51.14  at least once in a newspaper having general circulation in the 
 51.15  district.  A violation may be prosecuted before any court in the 
 51.16  district having jurisdiction of misdemeanor, and every court has 
 51.17  jurisdiction of violations.  A peace officer of any municipality 
 51.18  in the district may make arrests for violations committed 
 51.19  anywhere in the district in the manner and with the effect as 
 51.20  for violations of municipal ordinances or for statutory 
 51.21  misdemeanors.  All fines collected must be deposited in the 
 51.22  treasury of the board, or may be allocated between the board and 
 51.23  the municipality in which the prosecution occurs on terms agreed 
 51.24  to by the board and the municipality.  
 51.25     Subd. 5.  [GIFTS; GRANTS.] The board may accept gifts, may 
 51.26  apply for and accept grants or loans of money or other property 
 51.27  from the United States, the state, or any person for any of its 
 51.28  purposes, may enter into any agreement required to get the gift, 
 51.29  grant, loan, or other property; and may hold, use, and dispose 
 51.30  of money or property in accordance with the terms of the gift, 
 51.31  grant, loan or agreement.  With respect to any loans or grants 
 51.32  of funds or real or personal property or other assistance from 
 51.33  any state or federal government or any agency or instrumentality 
 51.34  of the government, the board may contract to do and perform all 
 51.35  acts and things required as a condition or consideration under 
 51.36  state or federal law or rule or regulation, whether or not 
 52.1   included among the powers expressly granted to the board in this 
 52.2   article.  
 52.3      Subd. 6.  [JOINT POWERS.] The board may act under Minnesota 
 52.4   Statutes, section 471.59, or any other appropriate law providing 
 52.5   for joint or cooperative action between government units.  
 52.6      Subd. 7.  [RESEARCH; HEARINGS; INVESTIGATIONS; ADVISE.] The 
 52.7   board may conduct research studies and programs, collect and 
 52.8   analyze data, prepare reports, maps, charts, and tables, and 
 52.9   conduct all necessary hearings and investigations in connection 
 52.10  with the design, construction, and operation of the district 
 52.11  disposal system, and may advise and assist other government 
 52.12  units on system planning matters within the scope of its powers, 
 52.13  duties, and objectives, and may provide at the request of any 
 52.14  governmental unit other technical and administrative assistance 
 52.15  as the board considers appropriate for the government unit to 
 52.16  carry out the powers and duties vested in the government unit 
 52.17  under this article or imposed on or by the board.  
 52.18     Subd. 8.  [EMPLOYEES; CONTRACTORS; INSURANCE.] The board 
 52.19  may employ on the terms it considers advisable, persons or firms 
 52.20  performing engineering, legal, or other services of a 
 52.21  professional nature; require any employee to get and file with 
 52.22  it an individual bond or fidelity insurance policy; and procure 
 52.23  insurance in the amounts it considers necessary against 
 52.24  liability of the board or its officers or both, for personal 
 52.25  injury or death and property damage or destruction, with the 
 52.26  force and effect stated in Minnesota Statutes, chapter 466, and 
 52.27  against risks of damage to or destruction of any of its 
 52.28  facilities, equipment, or other property as it considers 
 52.29  necessary.  
 52.30     Subd. 9.  [PROPERTY.] The board may acquire by purchase, 
 52.31  lease, condemnation, gift, or grant, real or personal property 
 52.32  including positive and negative easements and water and air 
 52.33  rights, and it may construct, enlarge, improve, replace, repair, 
 52.34  maintain, and operate any interceptor, treatment works, or water 
 52.35  facility determined to be necessary or convenient for the 
 52.36  collection and disposal of sewage in the district.  Any local 
 53.1   government unit and the commissioners of transportation and 
 53.2   natural resources may convey to or permit the use of these 
 53.3   facilities owned or controlled by the board, subject to the 
 53.4   rights of the holders of any bonds issued with respect to them 
 53.5   with or without compensation and without an election or approval 
 53.6   by any other government unit or agency.  All powers conferred by 
 53.7   this subdivision may be exercised both within or outside the 
 53.8   district as may be necessary for the exercise by the board of 
 53.9   its powers or the accomplishment of its purposes.  The board may 
 53.10  hold, lease, convey, or otherwise dispose of such property for 
 53.11  its purposes, upon the terms and in the manner it deems 
 53.12  advisable.  Unless otherwise provided, the right to acquire 
 53.13  lands and property rights by condemnation must be exercised in 
 53.14  accordance with Minnesota Statutes, chapter 117, and must apply 
 53.15  to any property or interest in property owned by any local 
 53.16  government unit.  But property devoted to an actual public use 
 53.17  at the time, or held to be devoted to such use within a 
 53.18  reasonable time, must not be so acquired unless a court of 
 53.19  competent jurisdiction determines that the use proposed by the 
 53.20  board is paramount.  In case of property in actual public use, 
 53.21  the board may take possession of any property of which 
 53.22  condemnation proceedings have begun at any time after the 
 53.23  issuance of a court order appointing commissioners for its 
 53.24  condemnation.  
 53.25     Subd. 10.  [RIGHTS-OF-WAY.] The board may construct or 
 53.26  maintain its systems or facilities in, along, on, under, over, 
 53.27  or through public waters, streets, bridges, viaducts, and other 
 53.28  public right-of-way without first getting a franchise from any 
 53.29  county or local government unit having jurisdiction over them.  
 53.30  But the facilities must be constructed and maintained in 
 53.31  accordance with the ordinances and resolutions of the county or 
 53.32  government unit relating to construction, installation, and 
 53.33  maintenance of similar facilities on public properties and must 
 53.34  not unnecessarily obstruct the public use of the rights-of-way. 
 53.35     Subd. 11.  [DISPOSAL OF PROPERTY.] The board may sell, 
 53.36  lease, or otherwise dispose of any real or personal property 
 54.1   acquired by it that is no longer required to accomplish its 
 54.2   purposes.  The property may be sold in the manner provided by 
 54.3   Minnesota Statutes, section 469.065, insofar as practical.  The 
 54.4   board may give notice of sale it considers appropriate.  When 
 54.5   the board determines that any property or any part of the 
 54.6   district disposal system that has been acquired from a local 
 54.7   government unit without compensation is no longer required, but 
 54.8   is required as a local facility by the government unit from 
 54.9   which is was acquired, the board may by resolution transfer it 
 54.10  to the government unit.  
 54.11     Subd. 12.  [JOINT OPERATIONS.] The board may contract with 
 54.12  the United States or an agency of it, any state or agency of it, 
 54.13  or any regional public planning body in the state with 
 54.14  jurisdiction over any part of the district, or any other 
 54.15  municipal or public corporation, or governmental subdivision in 
 54.16  any state, for the joint use of any facility owned by the board 
 54.17  or the entity, for the operation by the entity of any system or 
 54.18  facility of the board, or for the performance on the board's 
 54.19  behalf of any service including, but not limited to, planning, 
 54.20  on the terms that may be agreed to by the contracting parties.  
 54.21  Unless designated by the board as a local sanitary sewer 
 54.22  facility, any treatment works or interceptor jointly used, or 
 54.23  operated on behalf of the board, as provided in this 
 54.24  subdivision, must be considered to be operated by the board to 
 54.25  include the facilities in the district disposal system.  
 54.26     Sec. 17.  [LOCAL FACILITIES.] 
 54.27     Subdivision 1.  [SANITARY SEWER FACILITIES.] Except as 
 54.28  otherwise provided in this article, local government units must 
 54.29  retain responsibility for the planning, design, acquisition, 
 54.30  betterment, operation, administration, and maintenance of all 
 54.31  local sanitary sewer facilities as provided by law.  
 54.32     Subd. 2.  [ASSUMPTION OF RESPONSIBILITY OVER LOCAL SANITARY 
 54.33  SEWER FACILITIES.] The board must upon request of any government 
 54.34  unit assume, either alone or jointly with the local government 
 54.35  unit, all or any part of the responsibility of the local 
 54.36  government unit described in subdivision 1.  Except as provided 
 55.1   in subdivision 4 and to exercise the responsibility, the board 
 55.2   has all the powers and duties elsewhere conferred in this 
 55.3   article with the same force and effect as if the local sanitary 
 55.4   sewer facilities were a part of the district disposal system.  
 55.5      Subd. 3.  [WATER AND STREET FACILITIES.] The board may, on 
 55.6   request of any governmental unit, enter into an agreement under 
 55.7   which the board may assume, either alone or jointly with such 
 55.8   unit, the responsibility to get and construct water and street 
 55.9   facilities in conjunction with any project for the acquisition 
 55.10  or betterment of the district disposal system or any project 
 55.11  undertaken by the board under subdivision 2.  Except as provided 
 55.12  in subdivision 4, and to exercise any responsibilities under 
 55.13  this subdivision, the board has all the powers and duties 
 55.14  elsewhere conferred in this article with the same force and 
 55.15  effect as if the water or street facilities were a part of the 
 55.16  district disposal system.  
 55.17     Subd. 4.  [ALLOCATION OF CURRENT COSTS.] All current costs 
 55.18  attributable to responsibilities assumed by the board over local 
 55.19  sanitary sewer facilities and water and street facilities as 
 55.20  provided in this section must be allocated solely to the local 
 55.21  unit for or with whom the responsibilities are assumed on the 
 55.22  terms and over a period as the board determines to be equitable 
 55.23  and in the best interest of the district.  But if two or more 
 55.24  government units form a region in accordance with this section 
 55.25  all or part of the current costs attributable to the region 
 55.26  must, at the request of its joint board, be allocated to the 
 55.27  region and provided in the agreement establishing the region.  
 55.28     Subd. 5.  [PART OF DISTRICT SYSTEM.] This section or any 
 55.29  other part of this article does not prevent the board from 
 55.30  including, where appropriate, treatment works or interceptors, 
 55.31  previously designated or treated as local sanitary sewer 
 55.32  facilities, as a part of the district disposal system. 
 55.33     Sec. 18.  [SERVICE CONTRACTS WITH GOVERNMENTS OUTSIDE 
 55.34  DISTRICT.] 
 55.35     The board may contract with the United States or any agency 
 55.36  of it, any state or any agency of it, or any municipal or public 
 56.1   corporation, governmental subdivision or agency, or political 
 56.2   subdivision in any state, outside the jurisdiction of the board, 
 56.3   for furnishing to the entities any services which the board may 
 56.4   furnish to local government units in the district under this 
 56.5   article including, but not limited to, planning for and the 
 56.6   acquisition, betterment, operation, administration, and 
 56.7   maintenance of any or all interceptors, treatment works, and 
 56.8   local sanitary sewer facilities; if the board may further 
 56.9   include as one of the terms of the contract that the entity also 
 56.10  pay to the board an amount as may be agreed upon as a reasonable 
 56.11  estimate of the proportionate share properly allocable to the 
 56.12  entity of costs of acquisition, betterment, and debt service 
 56.13  previously allocated to local government units in the district.  
 56.14  When the payments are made by the entities to the board, they 
 56.15  must be applied in reduction of the total amount of costs 
 56.16  allocated after that to each local government unit in the 
 56.17  district, on the equitable basis the board considers to be in 
 56.18  the best interest of the district.  Any municipality in the 
 56.19  state may enter into the contract and perform all acts and 
 56.20  things required as a condition or consideration for it 
 56.21  consistent with the purpose of this article, whether or not 
 56.22  included among the powers otherwise granted to the municipality 
 56.23  by law or charter, the powers to include those powers set out in 
 56.24  section 9, subdivisions 3, 4, and 5. 
 56.25     Sec. 19.  [CONSTRUCTION, MATERIALS, SUPPLIES, EQUIPMENT; 
 56.26  CONTRACTS.] 
 56.27     Subdivision 1.  [PLANS AND SPECIFICATIONS.] When the board 
 56.28  orders a project involving the acquisition or betterment of a 
 56.29  part of the district disposal system, it must cause plans and 
 56.30  specifications of this project to be made, or if previously 
 56.31  made, to be modified, if necessary, and to be approved by the 
 56.32  agency if required, and after any required approval by the 
 56.33  agency, one or more contracts for work and materials called for 
 56.34  by the plans and specification may be awarded as provided in 
 56.35  this section.  
 56.36     Subd. 2.  [UNIFORM MUNICIPAL CONTRACTING LAW.] All 
 57.1   contracts for work to be done or for purchases of materials, 
 57.2   supplies, or equipment must be done in accordance with Minnesota 
 57.3   Statutes, section 471.345.  
 57.4      Sec. 20.  [ANNEXATION, WITHDRAWAL OF TERRITORY.] 
 57.5      Subdivision 1.  [ANNEXATION.] Any municipality in Douglas 
 57.6   county, upon resolution adopted by a four-fifths vote of its 
 57.7   governing body, may petition the board for annexation to the 
 57.8   district of the area then comprising the municipality or any 
 57.9   part of it and, if accepted by the board, the area must be 
 57.10  considered annexed to the district and subject to the 
 57.11  jurisdiction of the board under the terms and provisions of this 
 57.12  article.  The territory so annexed is subject to taxation and 
 57.13  assessment under this article and is subject to taxation by the 
 57.14  board like other property in the district for the payment of 
 57.15  principal and interest thereafter becoming due on general 
 57.16  obligations of the board, whether authorized or issued before or 
 57.17  after the annexation.  The board may condition approval of the 
 57.18  annexation upon the contribution, by or on behalf of the 
 57.19  municipality petitioning for annexation, to the board of an 
 57.20  amount as may be agreed upon as being a reasonable estimate of 
 57.21  the proportionate share, properly allocable to the municipality, 
 57.22  of cost or acquisition, betterment, and debt service previously 
 57.23  allocated to local government units in the district, on the 
 57.24  terms as may be agreed upon and in place of or in addition to 
 57.25  further conditions as the board deems in the best interests of 
 57.26  the district.  Notwithstanding any other provisions of this 
 57.27  article to the contrary, the conditions established for 
 57.28  annexation may include the requirement that the annexed 
 57.29  municipality pay for, contract for, and oversee the construction 
 57.30  of local sanitary sewer facilities and interceptor sewers as 
 57.31  those terms are defined in section 1.  To pay the contribution 
 57.32  or satisfy any other condition established by the board, the 
 57.33  municipality petitioning annexation may exercise the powers 
 57.34  conferred in section 9.  When the contributions are made by the 
 57.35  municipality to the board, they must be applied to reduce the 
 57.36  total amount of costs thereafter allocated to each local 
 58.1   government unit in the district, on the equitable basis as the 
 58.2   board considers to be in the best interests of the district, 
 58.3   applying so far as practicable and appropriate the criteria set 
 58.4   forth in section 8, subdivision 2.  On annexation of the 
 58.5   territory, the secretary of the board must certify to the 
 58.6   auditor and treasurer of the county in which the municipality is 
 58.7   located the fact of the annexation and a legal description of 
 58.8   the territory annexed.  
 58.9      Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
 58.10  the district by resolution of its governing body.  The 
 58.11  municipality must notify the board of the district of the 
 58.12  withdrawal by providing a copy of the resolution at least two 
 58.13  years in advance of the proposed withdrawal.  Unless the 
 58.14  district and the withdrawing member agree otherwise by action of 
 58.15  their governing bodies, the taxable property of the withdrawing 
 58.16  member is subject to its required property tax levies under this 
 58.17  article for two taxes payable years following the notification 
 58.18  of the withdrawal and the withdrawing member retains any rights, 
 58.19  obligations, and liabilities obtained or incurred during its 
 58.20  participation. 
 58.21     Sec. 21.  [PROPERTY EXEMPT FROM TAXATION.] 
 58.22     Any properties, real or personal, owned, leased, 
 58.23  controlled, used, or occupied by the sanitary sewer board for 
 58.24  any purpose under this article are declared to be acquired, 
 58.25  owned, leased, controlled, used, and occupied for public, 
 58.26  governmental, and municipal purposes, and are exempt from 
 58.27  taxation by the state or any political subdivision of the state; 
 58.28  but the properties are subject to special assessments levied by 
 58.29  a political subdivision for a local improvement in amounts 
 58.30  proportionate to and not exceeding the special benefit received 
 58.31  by the properties from the improvement.  No possible use of any 
 58.32  of the properties in any manner different from their use as part 
 58.33  of the disposal system at the time may be considered in 
 58.34  determining the special benefit received by the properties.  All 
 58.35  of the assessments are subject to final approval by the board, 
 58.36  whose determination of the benefits is conclusive upon the 
 59.1   political subdivision levying the assessment.  
 59.2      Sec. 22.  [RELATION TO EXISTING LAWS.] 
 59.3      This article prevails over any law or charter inconsistent 
 59.4   with it.  The powers conferred on the board under this article 
 59.5   do not diminish or supersede the powers conferred on the agency 
 59.6   by Minnesota Statutes, chapters 115 and 116.  
 59.7      Sec. 23.  [APPLICATION; EFFECTIVE DATE; LOCAL APPROVAL; OPT 
 59.8   IN OR OUT.] 
 59.9      Subdivision 1.  [APPLICATION.] This article applies to the 
 59.10  townships of Brandon, Carlos, LaGrand, Leaf Valley, Miltona, and 
 59.11  Moe, all in Douglas county. 
 59.12     Subd. 2.  [EFFECTIVE DATE; LOCAL APPROVAL.] This article is 
 59.13  effective the day after a fourth township of the six listed in 
 59.14  subdivision 1 has timely completed compliance with Minnesota 
 59.15  Statutes, section 645.021, subdivisions 2 and 3.  For any other 
 59.16  township listed in subdivision 1, this article is effective the 
 59.17  day after timely completing compliance with Minnesota Statutes, 
 59.18  section 645.021, subdivisions 2 and 3.  A township listed in 
 59.19  subdivision 1 that fails to timely complete compliance with 
 59.20  Minnesota Statutes, section 645.021, subdivisions 2 and 3, may 
 59.21  petition for annexation to the district at a later time, as 
 59.22  provided in this article.