1.1                          A bill for an act 
  1.2             relating to waste management; establishing the Aitkin 
  1.3             area resource recovery authority; proposing coding for 
  1.4             new law as Minnesota Statutes, chapter 116T. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [116T.01] [PURPOSE.] 
  1.7      The legislature finds that it is in the public interest and 
  1.8   an objective of the state to promote the recovery of usable 
  1.9   products and by-products of industrial activity through the 
  1.10  establishment of a demonstration facility to be located in 
  1.11  Aitkin county that will serve as a model to demonstrate new and 
  1.12  nontraditional methods of waste elimination.  The legislature 
  1.13  recognizes that in many instances in producing a product, 
  1.14  separate and incompatible waste is developed at various stages 
  1.15  of production and blended in a common waste stream, thereby 
  1.16  making by-product development difficult or impossible.  The 
  1.17  legislature intends that the demonstration facility show that 
  1.18  by-product development can best occur by separating out discrete 
  1.19  waste streams during the production process.  The legislature 
  1.20  intends that the demonstration facility incorporate the concept 
  1.21  of separating discrete industrial waste streams at the point of 
  1.22  waste creation for reuse and recovery and to provide for the 
  1.23  manufacture of by-products of commercial value. 
  1.24     The legislature further determines that it is necessary and 
  1.25  desirable to establish a demonstration resource recovery 
  2.1   industrial park that will have as its objective the bringing 
  2.2   together of privately or publicly owned industries with 
  2.3   analogous or compatible solid waste and effluent waste streams 
  2.4   that are able to support the operation of the demonstration 
  2.5   facility. 
  2.6      The legislature further finds that the establishment of the 
  2.7   demonstration facility in Aitkin county will have the effect of 
  2.8   promoting economic development in a rural county while at the 
  2.9   same time developing a model environmental facility. 
  2.10     The legislature finds that the objectives of this act can 
  2.11  best be accomplished by forming a public corporation that will 
  2.12  function in the nature of a public utility and in cooperation 
  2.13  with private and public industry in carrying out the foregoing 
  2.14  objectives. 
  2.15     The legislature is aware that Aitkin County Growth, Inc., a 
  2.16  Minnesota nonprofit corporation, is actively engaged in the 
  2.17  development of a program and plan to meet the objectives of this 
  2.18  chapter and has the demonstrated interest and required 
  2.19  dedication to assist in the implementation of the objectives of 
  2.20  this chapter. 
  2.21     The legislature finds that the objectives of this chapter 
  2.22  can best be accomplished by forming a public corporation to be 
  2.23  known as the Aitkin area resource recovery authority and that 
  2.24  the Aitkin area resource recovery authority be given the powers, 
  2.25  rights, privileges, and immunities provided in this chapter, 
  2.26  including the power and authority to cooperate and contract with 
  2.27  Aitkin County Growth, Inc., in every way necessary to carry out 
  2.28  the purposes provided for in this chapter. 
  2.29     Sec. 2.  [116T.02] [ORGANIZATION.] 
  2.30     Subdivision 1.  [ESTABLISHMENT.] The Aitkin area resource 
  2.31  recovery authority is established as a public corporation.  The 
  2.32  business of the corporation must be conducted under the name 
  2.33  Aitkin area resource recovery authority. 
  2.34     Subd. 2.  [BOARD OF DIRECTORS.] The corporation is governed 
  2.35  by a board of five directors.  The term of a director, except as 
  2.36  otherwise provided below, is six years.  One of the five 
  3.1   directors must be the director of the office of environmental 
  3.2   assistance.  The other four members of the board must be 
  3.3   appointed by the governor from a pool of candidates forwarded to 
  3.4   the governor by the board of Aitkin County Growth, Inc.  All 
  3.5   candidates must have a demonstrated interest in accomplishing 
  3.6   economic development that is in harmony with the environment.  
  3.7   The board of Aitkin County Growth, Inc., shall put forth three 
  3.8   candidates for each board position.  Two members of the initial 
  3.9   board of directors must be appointed for terms of four years, 
  3.10  and two for terms of two years.  Vacancies on the board must be 
  3.11  filled in the same fashion as above.  Board members must not be 
  3.12  compensated for their service as board members other than to be 
  3.13  reimbursed for reasonable expenses incurred in connection with 
  3.14  their duties as board members.  This reimbursement must be 
  3.15  reviewed each year by the commissioner of finance. 
  3.16     Subd. 3.  [BYLAWS.] The board of directors shall adopt 
  3.17  bylaws necessary for the conduct of the business of the 
  3.18  corporation, consistent with this chapter.  The corporation 
  3.19  shall publish the bylaws and amendments to the bylaws in the 
  3.20  State Register. 
  3.21     Subd. 4.  [PLACE OF BUSINESS.] The board shall locate and 
  3.22  maintain the corporation's place of business within Aitkin 
  3.23  county. 
  3.24     Subd. 5.  [CHAIR.] The board shall annually elect from 
  3.25  among its members a chair and other officers necessary for the 
  3.26  performance of the duties of the board. 
  3.27     Subd. 6.  [MEETINGS.] The board shall meet at least twice 
  3.28  each year and may hold additional meetings upon giving notice in 
  3.29  accordance with the bylaws of the corporation.  Board meetings 
  3.30  are subject to section 471.705. 
  3.31     Subd. 7.  [CONFLICT OF INTEREST.] Except as otherwise 
  3.32  provided, a director, employee, or officer of the corporation 
  3.33  may not participate in or vote on a decision of the board 
  3.34  relating to an organization in which the director has either a 
  3.35  direct or indirect financial interest. 
  3.36     Subd. 8.  [ECONOMIC INTEREST STATEMENTS.] Directors and 
  4.1   officers of the corporation are public officials for the purpose 
  4.2   of section 10A.09, and must file statements of economic interest 
  4.3   with the state ethical practices board. 
  4.4      Sec. 3.  [116T.03] [POWERS.] 
  4.5      Subdivision 1.  [GENERAL CORPORATE POWERS.] (a) The 
  4.6   corporation has the powers granted to a business corporation by 
  4.7   section 302A.161, subdivisions 3; 4; 5; 7; 11; 12; 13, except 
  4.8   that the corporation may not act as a general partner in any 
  4.9   partnership; 14; 15; 16; 17; 18; and 22, and the powers 
  4.10  necessary or convenient to exercise the enumerated powers. 
  4.11     (b) The state is not liable for the obligations of the 
  4.12  corporation. 
  4.13     (c) Section 302A.041 applies to this chapter and the 
  4.14  corporation in the same manner that it applies to business 
  4.15  corporations established under chapter 302A. 
  4.16     Subd. 2.  [AUTHORITY TO CONTRACT FOR ADMINISTRATIVE AND 
  4.17  MANAGEMENT FUNCTIONS.] The corporation may enter into management 
  4.18  and other contracts with Aitkin County Growth, Inc., for the 
  4.19  purpose of carrying out the administrative and other management 
  4.20  functions of the board and to otherwise further the purposes of 
  4.21  this chapter.  Notwithstanding the provision of section 116T.02, 
  4.22  subdivision 7, relating to conflict of interest, a director or 
  4.23  officer of the corporation may also be a director or officer of 
  4.24  Aitkin County Growth, Inc., a Minnesota nonprofit corporation, 
  4.25  and may participate in and vote on the decision of the board as 
  4.26  to the terms and conditions of any contract made and entered 
  4.27  into between the corporation and Aitkin County Growth, Inc. 
  4.28     Subd. 3.  [INDUSTRIAL PARK DEVELOPMENT AND RESOURCE 
  4.29  RECOVERY FACILITY DEVELOPMENT.] The corporation may acquire, 
  4.30  develop, and operate an industrial park complex and resource 
  4.31  recovery facility independently or jointly with public or 
  4.32  private industry within Aitkin county, and has all other powers 
  4.33  reasonably necessary to carry out the purposes of this chapter. 
  4.34     Subd. 4.  [FUNDS.] The corporation may accept and use 
  4.35  gifts, grants, or contributions from any source.  Unless 
  4.36  otherwise restricted by the terms of a gift or bequest, the 
  5.1   board may sell, exchange, or otherwise dispose of, and invest or 
  5.2   reinvest the money, securities, or other property given or 
  5.3   bequeathed to it.  The principal of these funds, the income from 
  5.4   them, and all other revenue received by it from any nonstate 
  5.5   source must be placed in the depositories the board determines 
  5.6   and is subject to expenditure for the board's purposes.  
  5.7   Expenditures of $25,000 or more must be approved by the full 
  5.8   board.  The corporation may make grants and loans for the 
  5.9   purposes of promoting the development of the industrial park 
  5.10  described in subdivision 3. 
  5.11     Sec. 4.  [116T.04] [ECONOMIC DEVELOPMENT AUTHORITY.] 
  5.12     The corporation, within the territory of the industrial 
  5.13  park to be established by it, has all of the powers of an 
  5.14  economic development authority established and existing under 
  5.15  sections 469.090 to 469.1081. 
  5.16     Sec. 5.  [116T.05] [EMPLOYEES.] 
  5.17     Persons employed by contractors or lessees of the 
  5.18  corporation, including Aitkin County Growth, Inc., are not state 
  5.19  employees and may not participate in state retirement, deferred 
  5.20  compensation, insurance, or other plans that apply to state 
  5.21  employees generally and are not subject to regulation by the 
  5.22  state ethical practices board. 
  5.23     Sec. 6.  [116T.06] [ACCOUNTS; AUDITS.] 
  5.24     The corporation may establish funds and accounts that it 
  5.25  finds convenient.  The board shall provide for and pay the cost 
  5.26  of an independent annual audit of its official books and records 
  5.27  by the legislative auditor subject to sections 3.971 and 3.972.  
  5.28  A copy of this audit must be filed with the secretary of state. 
  5.29     Sec. 7.  [116T.07] [ANNUAL REPORT.] 
  5.30     The board shall submit a report to the legislature and the 
  5.31  governor on the activities of the corporation and its 
  5.32  contractors and lessees by February 1 of each year.  The report 
  5.33  must include at least the following: 
  5.34     (1) a description of each of the programs that the 
  5.35  corporation has provided or undertaken at some time during the 
  5.36  previous year; 
  6.1      (2) an identification of the sources of funding in the 
  6.2   previous year for the corporation and its programs including 
  6.3   federal, state, and local government; foundations; gifts; 
  6.4   donations; fees; and all other sources; 
  6.5      (3) a description of the administrative expenses of the 
  6.6   corporation during the previous year; 
  6.7      (4) a listing of the assets and liabilities of the 
  6.8   corporation at the end of the previous year; 
  6.9      (5) a description of any changes made to the operational 
  6.10  plan during the previous year; and 
  6.11     (6) a description of any newly adopted or significant 
  6.12  changes to bylaws, policies, rules, or programs created or 
  6.13  administered by the corporation during the previous year. 
  6.14     Reports must be made to the legislature as required by 
  6.15  section 3.195. 
  6.16     Sec. 8.  [116T.08] [PROPERTY TAX EXEMPTION.] 
  6.17     Property of the corporation is exempt from taxation on its 
  6.18  value in the same manner as property listed in section 272.02, 
  6.19  subdivision 1. 
  6.20     Sec. 9.  [116T.09] [DISSOLUTION.] 
  6.21     Upon dissolution of the corporation for any reason, its 
  6.22  wholly owned assets become state property.  Partially owned 
  6.23  assets become state property to the extent that the state money 
  6.24  was used to acquire them.