1.1                          A bill for an act 
  1.2             relating to lake improvement districts; modifying 
  1.3             provisions relating to lake improvement districts; 
  1.4             amending Minnesota Statutes 1998, sections 103B.551, 
  1.5             subdivision 1; and 103B.555, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 103B.551, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [MEMBERSHIP.] After a lake improvement 
  1.10  district is established, the county board or joint county 
  1.11  authority shall appoint an election must be held for persons to 
  1.12  serve as an initial board of directors for the district.  The 
  1.13  number, qualifications, terms of office, removal, and filling of 
  1.14  vacancies of directors shall be as provided in the order 
  1.15  creating the board of directors.  Election of the board of 
  1.16  directors must follow the procedures in sections 103C.301 and 
  1.17  103C.305, except that the duties assigned to the board of water 
  1.18  and soil resources under sections 103C.301 and 103C.305 are 
  1.19  assigned to the commissioner of natural resources under this 
  1.20  section.  The initial and all subsequent boards of directors 
  1.21  must include persons owning property within the district, and a 
  1.22  majority of the directors must be residents of the district.  
  1.23     Sec. 2.  Minnesota Statutes 1998, section 103B.555, 
  1.24  subdivision 1, is amended to read: 
  1.25     Subdivision 1.  [REVENUE.] The county board or joint county 
  2.1   authority may undertake projects of improvement consistent with 
  2.2   purposes of the district.  The board must consider the 
  2.3   availability of nondistrict funding sources before assessing 
  2.4   property owners of the district for improvement projects.  To 
  2.5   finance projects and services of the district, the county board 
  2.6   or joint county authority may:  
  2.7      (1) assess the costs of the projects upon benefited 
  2.8   property within the district in the manner provided under 
  2.9   chapter 429; 
  2.10     (2) impose service charges on the users of lake improvement 
  2.11  district services within the district; 
  2.12     (3) issue obligations as provided in section 429.091; 
  2.13     (4) levy an ad valorem tax solely on property within the 
  2.14  lake improvement district, to be appropriated and expended 
  2.15  solely on projects of special benefit to the district; or 
  2.16     (5) impose or issue any combination of service charges, 
  2.17  special assessments, obligations, and taxes.