1.1 	A bill for an act
1.2 	relating to environment; authorizing certain expenditures from clean water fund; 
1.3 	modifying reporting requirements; modifying Petroleum Tank Release Cleanup 
1.4 	Act; providing for wastewater laboratory certification; providing for sanitary 
1.5 	districts; repealing obsolete rules; appropriating money;amending Minnesota 
1.6 	Statutes 2012, sections 114D.50, subdivision 4; 115A.1320, subdivision 1; 
1.7 	115B.20, subdivision 6; 115B.28, subdivision 1; 115C.02, subdivision 4; 
1.8 	115C.08, subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 
1.9 	6; 275.066; 473.846; proposing coding for new law in Minnesota Statutes, 
1.10 	chapter 115; proposing coding for new law as Minnesota Statutes, chapter 442A; 
1.11 	repealing Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 
1.12 	8, 9, 10; 115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 
1.13 	115.28; 115.29; 115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; 115.37; 
1.14 	Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 
1.15 	7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 
1.16 	9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	ENVIRONMENTAL POLICY

1.20 	Section 1. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
1.21 		Subd. 4.Expenditures; accountability. (a) A project receiving funding from the 
1.22 	clean water fund must meet or exceed the constitutional requirements to protect, enhance, 
1.23 	and restore water quality in lakes, rivers, and streams and to protect groundwater and 
1.24 	drinking water from degradation. Priority may be given to projects that meet more than 
1.25 	one of these requirements. A project receiving funding from the clean water fund shall 
1.26 	include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for 
1.27 	measuring and evaluating the results. A project must be consistent with current science 
1.28 	and incorporate state-of-the-art technology.
2.1 	(b) Money from the clean water fund shall be expended to balance the benefits 
2.2 	across all regions and residents of the state.
2.3 	(c) A state agency or other recipient of a direct appropriation from the clean 
2.4 	water fund must compile and submit all information for proposed and funded projects 
2.5 	or programs, including the proposed measurable outcomes and all other items required 
2.6 	under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon 
2.7 	as practicable or by January 15 of the applicable fiscal year, whichever comes first. The 
2.8 	Legislative Coordinating Commission must post submitted information on the Web site 
2.9 	required under section 3.303, subdivision 10, as soon as it becomes available. Information 
2.10 	classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required 
2.11 	to be placed on the Web site.
2.12 	(d) Grants funded by the clean water fund must be implemented according to section 
2.13 	16B.98 and must account for all expenditures. Proposals must specify a process for any 
2.14 	regranting envisioned. Priority for grant proposals must be given to proposals involving 
2.15 	grants that will be competitively awarded.
2.16 	(e) Money from the clean water fund may only be spent on projects that benefit 
2.17 	Minnesota waters.
2.18 	(f) When practicable, a direct recipient of an appropriation from the clean water fund 
2.19 	shall prominently display on the recipient's Web site home page the legacy logo required 
2.20 	under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter 
2.21 	361, article 3, section 5, accompanied by the phrase "Click here for more information." 
2.22 	When a person clicks on the legacy logo image, the Web site must direct the person to 
2.23 	a Web page that includes both the contact information that a person may use to obtain 
2.24 	additional information, as well as a link to the Legislative Coordinating Commission Web 
2.25 	site required under section 3.303, subdivision 10.
2.26 	(g) Future eligibility for money from the clean water fund is contingent upon a state 
2.27 	agency or other recipient satisfying all applicable requirements in this section, as well as 
2.28 	any additional requirements contained in applicable session law.
2.29 	(h) Money from the clean water fund may be used to leverage federal funds through 
2.30 	execution of formal project partnership agreements with federal agencies consistent with 
2.31 	respective federal agency partnership agreement requirements.

2.32 	Sec. 2. [115.84] WASTEWATER LABORATORY CERTIFICATION.
2.33 		Subdivision 1.Wastewater laboratory certification required. (a) Laboratories 
2.34 	performing wastewater or water analytical laboratory work, the results of which are 
2.35 	reported to the agency to determine compliance with a national pollutant discharge 
3.1 	elimination system (NPDES) permit condition or other regulatory document, must be 
3.2 	certified according to this section.
3.3 	(b) This section does not apply to:
3.4 	(1) laboratories that are private and for-profit;
3.5 	(2) laboratories that perform drinking water analyses; or
3.6 	(3) laboratories that perform remediation program analyses, such as Superfund or 
3.7 	petroleum analytical work.
3.8 	(c) Until adoption of rules under subdivision 2, laboratories required to be certified 
3.9 	under this section and submitting data to the agency must register by submitting 
3.10 	registration information required by the agency or be certified or approved by a recognized 
3.11 	certification authority, as required by agency programs.
3.12 		Subd 2.Rules. The agency may adopt rules to govern certification of laboratories 
3.13 	according to this section. Notwithstanding section 16A.1283, the agency may adopt 
3.14 	rules establishing fees.
3.15 		Subd. 3.Fees. (a) Until the agency adopts a rule establishing fees for certification, 
3.16 	the agency shall collect fees in amounts necessary to cover the reasonable costs of 
3.17 	the certification program, including reviewing applications, issuing certifications, and 
3.18 	conducting audits and compliance assistance.
3.19 	(b) Fees under this section must be based on the number, type, and complexity of 
3.20 	analytical methods that laboratories are certified to perform.
3.21 	(c) Revenue from fees charged by the agency for certification shall be credited to 
3.22 	the environmental fund.
3.23 		Subd. 4.Enforcement. (a) The commissioner may deny, suspend, or revoke 
3.24 	wastewater laboratory certification for, but is not limited to, any of the following reasons: 
3.25 	fraud, failure to follow applicable requirements, failure to respond to documented 
3.26 	deficiencies or complete corrective actions necessary to address deficiencies, failure to pay 
3.27 	certification fees, or other violations of federal or state law.
3.28 	(b) This section and the rules adopted under it may be enforced by any means 
3.29 	provided in section 115.071.

3.30 	Sec. 3. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
3.31 		Subdivision 1.Duties of the agency. (a) The agency shall administer sections 
3.32 	115A.1310 to 115A.1330.
3.33 	(b) The agency shall establish procedures for:
3.34 	(1) receipt and maintenance of the registration statements and certifications filed 
3.35 	with the agency under section 115A.1312; and
4.1 	(2) making the statements and certifications easily available to manufacturers, 
4.2 	retailers, and members of the public.
4.3 	(c) The agency shall annually review the value of the following variables that are 
4.4 	part of the formula used to calculate a manufacturer's annual registration fee under section 
4.5 	115A.1314, subdivision 1:
4.6 	(1) the proportion of sales of video display devices sold to households that 
4.7 	manufacturers are required to recycle;
4.8 	(2) the estimated per-pound price of recycling covered electronic devices sold to 
4.9 	households;
4.10 	(3) the base registration fee; and
4.11 	(4) the multiplier established for the weight of covered electronic devices collected 
4.12 	in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of 
4.13 	these values must be changed in order to improve the efficiency or effectiveness of the 
4.14 	activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit 
4.15 	recommended changes and the reasons for them to the chairs of the senate and house of 
4.16 	representatives committees with jurisdiction over solid waste policy.
4.17 	(d) By January 15 each year, beginning in 2008, the agency shall calculate estimated 
4.18 	sales of video display devices sold to households by each manufacturer during the preceding 
4.19 	program year, based on national sales data, and forward the estimates to the department.
4.20 	(e) The agency shall provide a report to the governor and the legislature on the 
4.21 	implementation of sections 115A.1310 to 115A.1330. For each program year, the report 
4.22 	must discuss the total weight of covered electronic devices recycled and a summary 
4.23 	of information in the reports submitted by manufacturers and recyclers under section 
4.24 	115A.1316. The report must also discuss the various collection programs used by 
4.25 	manufacturers to collect covered electronic devices; information regarding covered 
4.26 	electronic devices that are being collected by persons other than registered manufacturers, 
4.27 	collectors, and recyclers; and information about covered electronic devices, if any, being 
4.28 	disposed of in landfills in this state. The report must include a description of enforcement 
4.29 	actions under sections 115A.1310 to 115A.1330. The agency may include in its report 
4.30 	other information received by the agency regarding the implementation of sections 
4.31 	115A.1312 to 115A.1330. The report must be done in conjunction with the report required 
4.32 	under section 115D.10 115A.121.
4.33 	(f) The agency shall promote public participation in the activities regulated under 
4.34 	sections 115A.1312 to 115A.1330 through public education and outreach efforts.
4.35 	(g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner 
4.36 	provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those 
5.1 	provisions enforced by the department, as provided in subdivision 2. The agency may 
5.2 	revoke a registration of a collector or recycler found to have violated sections 115A.1310 
5.3 	to 115A.1330.
5.4 	(h) The agency shall facilitate communication between counties, collection and 
5.5 	recycling centers, and manufacturers to ensure that manufacturers are aware of video 
5.6 	display devices available for recycling.
5.7 	(i) The agency shall develop a form retailers must use to report information to 
5.8 	manufacturers under section 115A.1318 and post it on the agency's Web site.
5.9 	(j) The agency shall post on its Web site the contact information provided by each 
5.10 	manufacturer under section 115A.1318, paragraph (e).

5.11 	Sec. 4. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
5.12 		Subd. 6.Report to legislature. Each year By January 31 of each odd-numbered 
5.13 	year, the commissioner of agriculture and the agency shall submit to the senate Finance 
5.14 	Committee, the house of representatives Ways and Means Committee, the Environment 
5.15 	and Natural Resources Committees of the senate and house of representatives, the Finance 
5.16 	Division of the senate Committee on Environment and Natural Resources, and the house 
5.17 	of representatives Committee on Environment and Natural Resources Finance, and the 
5.18 	Environmental Quality Board a report detailing the activities for which money has been 
5.19 	spent pursuant to this section during the previous fiscal year.

5.20 	EFFECTIVE DATE. This section is effective July 1, 2013.

5.21 	Sec. 5. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
5.22 		Subdivision 1.Duties. In addition to performing duties specified in sections 
5.23 	115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained 
5.24 	in section 115B.35, the agency shall:
5.25 	(1) adopt rules, including rules governing practice and procedure before the agency, 
5.26 	the form and procedure for applications for compensation, and procedures for claims 
5.27 	investigations;
5.28 	(2) publicize the availability of compensation and application procedures on a 
5.29 	statewide basis with special emphasis on geographical areas surrounding sites identified 
5.30 	by the agency as having releases from a facility where a harmful substance was placed or 
5.31 	came to be located prior to July 1, 1983;
5.32 	(3) collect, analyze, and make available to the public, in consultation with the 
5.33 	Department of Health, the Pollution Control Agency, the University of Minnesota Medical 
6.1 	and Public Health Schools, and the medical community, data regarding injuries relating to 
6.2 	exposure to harmful substances; and
6.3 	(4) prepare and transmit by December 31 of each year to the governor and the 
6.4 	legislature an annual legislative report required under section 115B.20, subdivision 
6.5 	6, to include (i) a summary of agency activity under clause (3); (ii) data determined 
6.6 	by the agency from actual cases, including but not limited to number of cases, actual 
6.7 	compensation received by each claimant, types of cases, and types of injuries compensated, 
6.8 	as they relate to types of harmful substances as well as length of exposure, but excluding 
6.9 	identification of the claimants; (iii) all administrative costs associated with the business of 
6.10 	the agency; and (iv) agency recommendations for legislative changes, further study, or any 
6.11 	other recommendation aimed at improving the system of compensation.

6.12 	Sec. 6. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
6.13 		Subd. 4.Corrective action. "Corrective action" means an action taken to minimize, 
6.14 	eliminate, or clean up a release to protect the public health and welfare or the environment.
6.15 	 Corrective action may include, environmental covenants pursuant to chapter 114E, an 
6.16 	affidavit required under section 116.48, subdivision 6, or similar notice of a release 
6.17 	recorded with real property records.

6.18 	Sec. 7. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
6.19 		Subd. 4.Expenditures. (a) Money in the fund may only be spent:
6.20 	(1) to administer the petroleum tank release cleanup program established in this 
6.21 	chapter;
6.22 	(2) for agency administrative costs under sections 116.46 to 116.50, sections 
6.23 	115C.03 to 115C.06, and costs of corrective action taken by the agency under section 
6.24 	115C.03, including investigations;
6.25 	(3) for costs of recovering expenses of corrective actions under section 115C.04;
6.26 	(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
6.27 	(5) for agency administrative costs of enforcing rules governing the construction, 
6.28 	installation, operation, and closure of aboveground and underground petroleum storage 
6.29 	tanks;
6.30 	(6) for reimbursement of the environmental response, compensation, and compliance 
6.31 	account under subdivision 5 and section 115B.26, subdivision 4;
6.32 	(7) for administrative and staff costs as set by the board to administer the petroleum 
6.33 	tank release program established in this chapter;
6.34 	(8) for corrective action performance audits under section 115C.093;
7.1 	(9) for contamination cleanup grants, as provided in paragraph (c);
7.2 	(10) to assess and remove abandoned underground storage tanks under section 
7.3 	115C.094 and, if a release is discovered, to pay for the specific consultant and contractor 
7.4 	services costs necessary to complete the tank removal project, including, but not limited 
7.5 	to, excavation soil sampling, groundwater sampling, soil disposal, and completion of 
7.6 	an excavation report; and
7.7 	(11) for property acquisition by the agency when the agency has determined that 
7.8 	purchasing a property where a release has occurred is the most appropriate corrective 
7.9 	action. The to acquire interests in real or personal property, including easements, 
7.10 	environmental covenants under chapter 114E, and leases, that the agency determines are 
7.11 	necessary for corrective actions or to ensure the protectiveness of corrective actions. A 
7.12 	donation of an interest in real property to the agency is not effective until the agency 
7.13 	executes a certificate of acceptance. The state is not liable under this chapter solely as a 
7.14 	result of acquiring an interest in real property under this clause. Agency approval of an 
7.15 	environmental covenant under chapter 114E is sufficient evidence of acceptance of an 
7.16 	interest in real property when the agency is expressly identified as a holder in the covenant.
7.17 	 Acquisition of all properties real property under this clause, except environmental 
7.18 	covenants under chapter 114E, is subject to approval by the board.
7.19 	(b) Except as provided in paragraph (c), money in the fund is appropriated to the 
7.20 	board to make reimbursements or payments under this section.
7.21 	(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund 
7.22 	to the commissioner of employment and economic development for contamination cleanup 
7.23 	grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter, 
7.24 	$6,200,000 is annually appropriated from the fund to the commissioner of employment 
7.25 	and economic development for contamination cleanup grants under section 116J.554. Of 
7.26 	this amount, the commissioner may spend up to $225,000 annually for administration 
7.27 	of the contamination cleanup grant program. The appropriation does not cancel and is 
7.28 	available until expended. The appropriation shall not be withdrawn from the fund nor the 
7.29 	fund balance reduced until the funds are requested by the commissioner of employment 
7.30 	and economic development. The commissioner shall schedule requests for withdrawals 
7.31 	from the fund to minimize the necessity to impose the fee authorized by subdivision 2. 
7.32 	Unless otherwise provided, the appropriation in this paragraph may be used for:
7.33 	(1) project costs at a qualifying site if a portion of the cleanup costs are attributable 
7.34 	to petroleum contamination or new and used tar and tar-like substances, including but not 
7.35 	limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist 
7.36 	primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, 
8.1 	fractions, or residues from the processing of petroleum crude or petroleum products as 
8.2 	defined in section 296A.01; and
8.3 	(2) the costs of performing contamination investigation if there is a reasonable basis 
8.4 	to suspect the contamination is attributable to petroleum or new and used tar and tar-like 
8.5 	substances, including but not limited to bitumen and asphalt, but excluding bituminous or 
8.6 	asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits 
8.7 	in the earth or are distillates, fractions, or residues from the processing of petroleum crude 
8.8 	or petroleum products as defined in section 296A.01.

8.9 	Sec. 8. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision 
8.10 	to read:
8.11 		Subd. 6.Disposition of property acquired for corrective action. (a) If the 
8.12 	commissioner determines that real or personal property acquired by the agency for a 
8.13 	corrective action is no longer needed for corrective action purposes, the commissioner may:
8.14 	(1) request the commissioner of administration to dispose of the property according 
8.15 	to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution 
8.16 	Control Agency determines necessary to protect the public health and welfare and the 
8.17 	environment or to comply with federal law;
8.18 	(2) transfer the property to another state agency, a political subdivision, or a special 
8.19 	purpose district as provided in paragraph (b); or
8.20 	(3) if required by federal law, take actions and dispose of the property according 
8.21 	to federal law.
8.22 	(b) If the commissioner determines that real or personal property acquired by 
8.23 	the agency for a corrective action must be operated, maintained, or monitored after 
8.24 	completion of other phases of the corrective action, the commissioner may transfer 
8.25 	ownership of the property to another state agency, a political subdivision, or a special 
8.26 	purpose district that agrees to accept the property. A state agency, political subdivision, 
8.27 	or special purpose district may accept and implement terms and conditions of a transfer 
8.28 	under this paragraph. The commissioner may set terms and conditions for the transfer 
8.29 	that the commissioner considers reasonable and necessary to ensure proper operation, 
8.30 	maintenance, and monitoring of corrective actions; protect the public health and welfare 
8.31 	and the environment; and comply with applicable federal and state laws and regulations. 
8.32 	The state agency, political subdivision, or special purpose district to which the property is 
8.33 	transferred is not liable under this chapter solely as a result of acquiring the property or 
8.34 	acting in accordance with the terms and conditions of transfer.
9.1 	(c) The proceeds of a sale or other transfer of property under this subdivision 
9.2 	by the commissioner or by the commissioner of administration shall be deposited in 
9.3 	the petroleum tank fund or other appropriate fund. Any share of the proceeds that the 
9.4 	agency is required by federal law or regulation to reimburse to the federal government is 
9.5 	appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1, 
9.6 	does not apply to real property that is sold by the commissioner of administration and that 
9.7 	was acquired under subdivision 4, clause (11).

9.8 	Sec. 9. Minnesota Statutes 2012, section 115D.10, is amended to read:
9.9 	115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
9.10 	The commissioner, in cooperation with the commission, shall report to 
9.11 	the Environment and Natural Resources Committees of the senate and house of 
9.12 	representatives, the Finance Division of the senate Committee on Environment and 
9.13 	Natural Resources, and the house of representatives Committee on Environment and 
9.14 	Natural Resources Finance on progress being made in achieving the objectives of sections 
9.15 	115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered 
9.16 	year done in conjunction with the report required under section 115A.121.

9.17 	Sec. 10. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
9.18 		Subd. 6.Affidavit. (a) Before transferring ownership of property that the owner 
9.19 	knows contains an underground or aboveground storage tank or contained an underground 
9.20 	or aboveground storage tank that had a release for which no corrective action was taken or 
9.21 	if required by the agency as a condition of a corrective action under chapter 115C, the 
9.22 	owner shall record with the county recorder or registrar of titles of the county in which the 
9.23 	property is located an affidavit containing:
9.24 	(1) a legal description of the property where the tank is located;
9.25 	(2) a description of the tank, of the location of the tank, and of any known release 
9.26 	from the tank of a regulated substance to the full extent known or reasonably ascertainable;
9.27 	(3) a description of any restrictions currently in force on the use of the property 
9.28 	resulting from any release; and
9.29 	(4) the name of the owner.
9.30 	(b) The county recorder shall record the affidavits in a manner that will insure 
9.31 	their disclosure in the ordinary course of a title search of the subject property. Before 
9.32 	transferring ownership of property that the owner knows contains an underground or 
9.33 	aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit 
10.1 	and any additional information necessary to make the facts in the affidavit accurate as of 
10.2 	the date of transfer of ownership.
10.3 	(c) Failure to record an affidavit as provided in this subdivision does not affect or 
10.4 	prevent any transfer of ownership of the property.

10.5 	Sec. 11. Minnesota Statutes 2012, section 473.846, is amended to read:
10.6 	473.846 REPORTS REPORT TO LEGISLATURE.
10.7 	The agency shall submit to the senate and house of representatives committees 
10.8 	having jurisdiction over environment and natural resources separate reports a report
10.9 	 describing the activities for which money for landfill abatement has been spent under 
10.10 	sections section473.844and 473.845. The report for section 473.844 expenditures shall be 
10.11 	included in the report required by section 115A.411, and shall include recommendations 
10.12 	on the future management and use of the metropolitan landfill abatement account. By 
10.13 	December 31 of each year, the commissioner shall submit the report for section 473.845
10.14 	 on contingency action trust fund activities.

10.15 	Sec. 12.  REPEALER.
 10.16 	Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and 5; 7021.0020; 7021.0030; 
10.17 	7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 
10.18 	9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and 9220.0530, subpart 6, are 
10.19 	repealed.

10.20 	ARTICLE 2
10.21 	SANITARY DISTRICTS

10.22 	Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
10.23 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
10.24 	For the purposes of property taxation and property tax state aids, the term "special 
10.25 	taxing districts" includes the following entities:
10.26 	(1) watershed districts under chapter 103D;
10.27 	(2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
10.28 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
10.29 	(4) regional public library districts under section 134.201;
10.30 	(5) park districts under chapter 398;
10.31 	(6) regional railroad authorities under chapter 398A;
10.32 	(7) hospital districts under sections 447.31 to 447.38;
11.1 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
11.2 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
11.3 	(10) regional development commissions under sections 462.381 to 462.398;
11.4 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
11.5 	(12) port authorities under sections 469.048 to 469.068;
11.6 	(13) economic development authorities under sections 469.090 to 469.1081;
11.7 	(14) Metropolitan Council under sections 473.123 to 473.549;
11.8 	(15) Metropolitan Airports Commission under sections 473.601 to 473.680;
11.9 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
11.10 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
11.11 	chapter 437, section 1;
11.12 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
11.13 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
11.14 	sections 1 to 6;
11.15 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
11.16 	5, section 39;
11.17 	(21) Middle Mississippi River Watershed Management Organization under sections 
11.18 	103B.211 and 103B.241;
11.19 	(22) emergency medical services special taxing districts under section 144F.01;
11.20 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
11.21 	103B.251;
11.22 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
11.23 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
11.24 	(25) an airport authority created under section 360.0426; and
11.25 	(26) any other political subdivision of the state of Minnesota, excluding counties, 
11.26 	school districts, cities, and towns, that has the power to adopt and certify a property tax 
11.27 	levy to the county auditor, as determined by the commissioner of revenue.

11.28 	Sec. 2. [442A.01] DEFINITIONS.
11.29 		Subdivision 1.Applicability. For the purposes of this chapter, the terms defined 
11.30 	in this section have the meanings given.
11.31 		Subd. 2.Chief administrative law judge. "Chief administrative law judge" means 
11.32 	the chief administrative law judge of the Office of Administrative Hearings or the delegate 
11.33 	of the chief administrative law judge under section 14.48.
11.34 		Subd. 3.District. "District" means a sanitary district created under this chapter or 
11.35 	under Minnesota Statutes 2012, sections 115.18 to 115.37.
12.1 		Subd. 4.Municipality. "Municipality" means a city, however organized.
12.2 		Subd. 5.Property owner. "Property owner" means the fee owner of land, or the 
12.3 	beneficial owner of land whose interest is primarily one of possession and enjoyment. 
12.4 	Property owner includes, but is not limited to, vendees under a contract for deed and 
12.5 	mortgagors. Any reference to a percentage of property owners means in number.
12.6 		Subd. 6.Related governing body. "Related governing body" means the governing 
12.7 	body of a related governmental subdivision and, in the case of an organized town, means 
12.8 	the town board.
12.9 		Subd. 7.Related governmental subdivision. "Related governmental subdivision" 
12.10 	means a municipality or organized town wherein there is a territorial unit of a district or, in 
12.11 	the case of an unorganized area, the county.
12.12 		Subd. 8.Statutory city.  "Statutory city" means a city organized as provided by 
12.13 	chapter 412, under the plan other than optional.
12.14 		Subd. 9.Territorial unit. "Territorial unit" means all that part of a district situated 
12.15 	within a single municipality, within a single organized town outside of a municipality, or, 
12.16 	in the case of an unorganized area, within a single county.

12.17 	Sec. 3. [442A.015] APPLICABILITY.
12.18 	All new sanitary district formations proposed and all sanitary districts previously 
12.19 	formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this 
12.20 	chapter, including annexations to, detachments from, and resolutions of sanitary districts 
12.21 	previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

12.22 	Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
12.23 		Subdivision 1.Duty of chief administrative law judge. The chief administrative 
12.24 	law judge shall conduct proceedings, make determinations, and issue orders for the 
12.25 	creation of a sanitary district formed under this chapter or the annexation, detachment, 
12.26 	or dissolution of a sanitary district previously formed under Minnesota Statutes 2012, 
12.27 	sections 115.18 to 115.37.
12.28 		Subd. 2.Consolidation of proceedings. The chief administrative law judge may 
12.29 	order the consolidation of separate proceedings in the interest of economy and expedience.
12.30 		Subd. 3.Contracts, consultants. The chief administrative law judge may contract 
12.31 	with regional, state, county, or local planning commissions and hire expert consultants to 
12.32 	provide specialized information and assistance.
12.33 		Subd. 4.Powers of conductor of proceedings. Any person conducting a 
12.34 	proceeding under this chapter may administer oaths and affirmations; receive testimony 
13.1 	of witnesses, and the production of papers, books, and documents; examine witnesses; 
13.2 	and receive and report evidence. Upon the written request of a presiding administrative 
13.3 	law judge or a party, the chief administrative law judge may issue a subpoena for the 
13.4 	attendance of a witness or the production of books, papers, records, or other documents 
13.5 	material to any proceeding under this chapter. The subpoena is enforceable through the 
13.6 	district court in the district in which the subpoena is issued.
13.7 		Subd. 5.Rulemaking authority. The chief administrative law judge may adopt 
13.8 	rules that are reasonably necessary to carry out the duties and powers imposed upon the 
13.9 	chief administrative law judge under this chapter. The chief administrative law judge may 
13.10 	initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the 
13.11 	chief administrative law judge may adopt rules establishing fees.
13.12 		Subd. 6.Schedule of filing fees. The chief administrative law judge may prescribe 
13.13 	by rule a schedule of filing fees for any petitions filed under this chapter.
13.14 		Subd. 7.Request for hearing transcripts; costs. Any party may request the chief 
13.15 	administrative law judge to cause a transcript of the hearing to be made. Any party 
13.16 	requesting a copy of the transcript is responsible for its costs.
13.17 		Subd. 8.Compelled meetings; report. (a) In any proceeding under this chapter, 
13.18 	the chief administrative law judge or conductor of the proceeding may at any time in the 
13.19 	process require representatives from any petitioner, property owner, or involved city, town, 
13.20 	county, political subdivision, or other governmental entity to meet together to discuss 
13.21 	resolution of issues raised by the petition or order that confers jurisdiction on the chief 
13.22 	administrative law judge and other issues of mutual concern. The chief administrative 
13.23 	law judge or conductor of the proceeding may determine which entities are required 
13.24 	to participate in these discussions. The chief administrative law judge or conductor of 
13.25 	the proceeding may require that the parties meet at least three times during a 60-day 
13.26 	period. The parties shall designate a person to report to the chief administrative law 
13.27 	judge or conductor of the proceeding on the results of the meetings immediately after the 
13.28 	last meeting. The parties may be granted additional time at the discretion of the chief 
13.29 	administrative law judge or conductor of the proceedings.
13.30 	(b) Any proposed resolution or settlement of contested issues that results in a 
13.31 	sanitary district formation, annexation, detachment, or dissolution; places conditions on 
13.32 	any future sanitary district formation, annexation, detachment, or dissolution; or results in 
13.33 	the withdrawal of an objection to a pending proceeding or the withdrawal of a pending 
13.34 	proceeding must be filed with the chief administrative law judge and is subject to the 
13.35 	applicable procedures and statutory criteria of this chapter.
14.1 		Subd. 9.Data from state agencies. The chief administrative law judge may 
14.2 	request boundary-related information that is otherwise classified as public data from any 
14.3 	state department or agency to assist in carrying out the chief administrative law judge's 
14.4 	duties under this chapter. The department or agency shall promptly furnish the requested 
14.5 	information.
14.6 		Subd. 10.Permanent official record. The chief administrative law judge shall 
14.7 	provide information about sanitary district creations, annexations, detachments, and 
14.8 	dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control 
14.9 	Agency is responsible for maintaining the official record, including all documentation 
14.10 	related to the processes.
14.11 		Subd. 11.Shared program costs and fee revenue. The chief administrative 
14.12 	law judge and the Minnesota Pollution Control Agency shall agree on an amount to be 
14.13 	transferred from the Minnesota Pollution Control Agency to the chief administrative law 
14.14 	judge to pay for administration of this chapter, including publication and notification costs. 
14.15 	Sanitary district fees collected by the chief administrative law judge shall be deposited in 
14.16 	the environmental fund.

14.17 	EFFECTIVE DATE. Subdivision 5 is effective the day following final enactment.

14.18 	Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
14.19 	Any party initiating a sanitary district proceeding that includes platted land shall file 
14.20 	with the chief administrative law judge maps which are necessary to support and identify 
14.21 	the land description. The maps shall include copies of plats.

14.22 	Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
14.23 		Subdivision 1.Sanitary district creation. (a) A sanitary district may be created 
14.24 	under this chapter for any territory embracing an area or a group of two or more adjacent 
14.25 	areas, whether contiguous or separate, but not situated entirely within the limits of a 
14.26 	single municipality. The proposed sanitary district must promote the public health and 
14.27 	welfare by providing an adequate and efficient system and means of collecting, conveying, 
14.28 	pumping, treating, and disposing of domestic sewage and garbage and industrial wastes 
14.29 	within the district. When the chief administrative law judge or the Minnesota Pollution 
14.30 	Control Agency finds that there is need throughout the territory for the accomplishment 
14.31 	of these purposes; that these purposes can be effectively accomplished on an equitable 
14.32 	basis by a district if created; and that the creation and maintenance of a district will be 
14.33 	administratively feasible and in furtherance of the public health, safety, and welfare, the 
14.34 	chief administrative law judge shall make an order creating the sanitary district. A sanitary 
15.1 	district is administratively feasible under this section if the district has the financial and 
15.2 	managerial resources needed to deliver adequate and efficient sanitary sewer services 
15.3 	within the proposed district.
15.4 	(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the 
15.5 	boundary of any city of the first class without the approval of the governing body thereof 
15.6 	and the approval of the governing body of each and every municipality in the proposed 
15.7 	district by resolution filed with the chief administrative law judge.
15.8 	(c) If the chief administrative law judge and the Minnesota Pollution Control Agency 
15.9 	disagree on the need to create a sanitary district, they must determine whether not allowing 
15.10 	the sanitary district formation will have a detrimental effect on the environment. If it is 
15.11 	determined that the sanitary district formation will prevent environmental harm, the sanitary 
15.12 	district creation or connection to an existing wastewater treatment system must occur.
15.13 		Subd. 2.Proceeding to create sanitary district. (a) A proceeding for the creation 
15.14 	of a district may be initiated by a petition to the chief administrative law judge containing 
15.15 	the following:
15.16 	(1) a request for creation of the proposed district;
15.17 	(2) the name proposed for the district, to include the words "sanitary district";
15.18 	(3) a legal description of the territory of the proposed district, including justification 
15.19 	for inclusion or exclusion for all parcels;
15.20 	(4) addresses of every property owner within the proposed district boundaries as 
15.21 	provided by the county auditor, with certification from the county auditor; two sets of 
15.22 	address labels for said owners; and a list of e-mail addresses for said owners, if available;
15.23 	(5) a statement showing the existence in the territory of the conditions requisite for 
15.24 	creation of a district as prescribed in subdivision 1;
15.25 	(6) a statement of the territorial units represented by and the qualifications of the 
15.26 	respective signers; and
15.27 	(7) the post office address of each signer, given under the signer's signature.
15.28 	A petition may consist of separate writings of like effect, each signed by one or more 
15.29 	qualified persons, and all such writings, when filed, shall be considered together as a 
15.30 	single petition.
15.31 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
15.32 	proposed creation of the district. At the meeting, information must be provided, including 
15.33 	a description of the district's proposed structure, bylaws, territory, ordinances, budget, and 
15.34 	charges and a description of the territory of the proposed district, including justification 
15.35 	for inclusion or exclusion for all parcels. Notice of the meeting must be published for two 
15.36 	successive weeks in a qualified newspaper, as defined under chapter 331A, published 
16.1 	within the territory of the proposed district or, if there is no qualified newspaper published 
16.2 	within the territory, in a qualified newspaper of general circulation in the territory, and 
16.3 	must be posted for two weeks in each territorial unit of the proposed district and on the 
16.4 	Web site of the proposed district, if one exists. Notice of the meeting must be mailed or 
16.5 	e-mailed at least three weeks prior to the meeting to all property tax billing addresses for 
16.6 	all parcels included in the proposed district. The following must be submitted to the chief 
16.7 	administrative law judge with the petition:
16.8 	(1) a record of the meeting, including copies of all information provided at the 
16.9 	meeting;
16.10 	(2)  a copy of the mailing list provided by the county auditor and used to notify 
16.11 	property owners of the meeting;
16.12 	(3) a copy of the e-mail list used to notify property owners of the meeting;
16.13 	(4) the printer's affidavit of publication of public meeting notice; 
16.14 	(5) an affidavit of posting the public meeting notice with information on dates and 
16.15 	locations of posting; and
16.16 	(6) the minutes or other record of the public meeting documenting that the following 
16.17 	topics were discussed: printer's affidavit of publication of each resolution, with a copy 
16.18 	of the resolution from the newspaper attached; and the affidavit of resolution posting 
16.19 	on the town or proposed district Web site.
16.20 	(c) Every petition must be signed as follows:
16.21 	(1) for each municipality wherein there is a territorial unit of the proposed district, 
16.22 	by an authorized officer pursuant to a resolution of the municipal governing body;
16.23 	(2) for each organized town wherein there is a territorial unit of the proposed district, 
16.24 	by an authorized officer pursuant to a resolution of the town board;
16.25 	(3) for each county wherein there is a territorial unit of the proposed district consisting 
16.26 	of an unorganized area, by an authorized officer pursuant to a resolution of the county 
16.27 	board or by at least 20 percent of the voters residing and owning land within the unit.
16.28 	(d) Each resolution must be published in the official newspaper of the governing 
16.29 	body adopting it and becomes effective 40 days after publication, unless within said 
16.30 	period there shall be filed with the governing body a petition signed by qualified electors 
16.31 	of a territorial unit of the proposed district, equal in number to five percent of the number 
16.32 	of electors voting at the last preceding election of the governing body, requesting a 
16.33 	referendum on the resolution, in which case the resolution may not become effective until 
16.34 	approved by a majority of the qualified electors voting at a regular election or special 
16.35 	election that the governing body may call. The notice of an election and the ballot to be 
17.1 	used must contain the text of the resolution followed by the question: "Shall the above 
17.2 	resolution be approved?"
17.3 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
17.4 	the signer's landowner status as shown by the county auditor's tax assessment records, 
17.5 	certified by the auditor, shall be attached to or endorsed upon the petition.
17.6 	(f) At any time before publication of the public notice required in subdivision 3, 
17.7 	additional signatures may be added to the petition or amendments of the petition may 
17.8 	be made to correct or remedy any error or defect in signature or otherwise except a 
17.9 	material error or defect in the description of the territory of the proposed district. If the 
17.10 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
17.11 	shall determine the challenge forthwith on the allegations of the petition, the county 
17.12 	auditor's certificate of land ownership, and such other evidence as may be received.
17.13 		Subd. 3.Notice of intent to create sanitary district. (a) Upon receipt of a petition 
17.14 	and the record of the public meeting required under subdivision 2, the chief administrative 
17.15 	law judge shall publish a notice of intent to create the proposed sanitary district in the State 
17.16 	Register and mail or e-mail information of that publication to each property owner in the 
17.17 	affected territory at the owner's address as given by the county auditor. The information 
17.18 	must state the date that the notice will appear in the State Register and give the Web site 
17.19 	location for the State Register. The notice must:
17.20 	(1) describe the petition for creation of the district;
17.21 	(2) describe the territory affected by the petition;
17.22 	(3) allow 30 days for submission of written comments on the petition;
17.23 	(4) state that a person who objects to the petition may submit a written request for 
17.24 	hearing to the chief administrative law judge within 30 days of the publication of the 
17.25 	notice in the State Register; and
17.26 	(5) state that if a timely request for hearing is not received, the chief administrative 
17.27 	law judge may make a decision on the petition.
17.28 	(b) If 50 or more individual timely requests for hearing are received, the chief 
17.29 	administrative law judge must hold a hearing on the petition according to the contested 
17.30 	case provisions of chapter 14. The sanitary district proposers are responsible for paying all 
17.31 	costs involved in publicizing and holding a hearing on the petition.
17.32 		Subd. 4.Hearing time, place. If a hearing is required pursuant to subdivision 3, the 
17.33 	chief administrative law judge shall designate a time and place for a hearing according 
17.34 	to section 442A.13.
17.35 		Subd. 5.Relevant factors. (a) In arriving at a decision, the chief administrative law 
17.36 	judge shall consider the following factors:
18.1 	(1) administrative feasibility under subdivision 1, paragraph (a);
18.2 	(2) public health, safety, and welfare impacts;
18.3 	(3) alternatives for managing the public health impacts;
18.4 	(4) equities of the petition proposal;
18.5 	(5) contours of the petition proposal; and
18.6 	(6) public notification of and interaction on the petition proposal.
18.7 	(b) Based on the factors in paragraph (a), the chief administrative law judge may 
18.8 	order the sanitary district creation on finding that:
18.9 	(1) the proposed district is administratively feasible;
18.10 	(2) the proposed district provides a long-term, equitable solution to pollution 
18.11 	problems affecting public health, safety, and welfare;
18.12 	(3) property owners within the proposed district were provided notice of the 
18.13 	proposed district and opportunity to comment on the petition proposal; and
18.14 	(4) the petition complied with the requirements of all applicable statutes and rules 
18.15 	pertaining to sanitary district creation.
18.16 	(c) The chief administrative law judge may alter the boundaries of the proposed 
18.17 	sanitary district by increasing or decreasing the area to be included or may exclude 
18.18 	property that may be better served by another unit of government. The chief administrative 
18.19 	law judge may also alter the boundaries of the proposed district so as to follow visible, 
18.20 	clearly recognizable physical features for municipal boundaries.
18.21 	(d) The chief administrative law judge may deny sanitary district creation if the area, 
18.22 	or a part thereof, would be better served by an alternative method.
18.23 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
18.24 	the basis for the decision.
18.25 		Subd. 6.Findings; order. After the public notice period or the public hearing, if 
18.26 	required under subdivision 3, and based on the petition, any public comments received, 
18.27 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
18.28 	make findings of fact and conclusions determining whether the conditions requisite for the 
18.29 	creation of a district exist in the territory described in the petition. If the chief administrative 
18.30 	law judge finds that the conditions exist, the judge may make an order creating a district 
18.31 	for the territory described in that petition under the name proposed in the petition or such 
18.32 	other name, including the words "sanitary district," as the judge deems appropriate.
18.33 		Subd. 7.Denial of petition. If the chief administrative law judge, after conclusion 
18.34 	of the public notice period or holding a hearing, if required, determines that the creation of 
18.35 	a district in the territory described in the petition is not warranted, the judge shall make 
18.36 	an order denying the petition. The chief administrative law judge shall give notice of the 
19.1 	denial by mail or e-mail to each signer of the petition. No petition for the creation of a 
19.2 	district consisting of the same territory shall be entertained within a year after the date of 
19.3 	an order under this subdivision. Nothing in this subdivision precludes action on a petition 
19.4 	for the creation of a district embracing part of the territory with or without other territory.
19.5 		Subd. 8.Notice of order creating sanitary district. The chief administrative law 
19.6 	judge shall publish a notice in the State Register of the final order creating a sanitary 
19.7 	district, referring to the date of the order and describing the territory of the district, and 
19.8 	shall mail or e-mail information of the publication to each property owner in the affected 
19.9 	territory at the owner's address as given by the county auditor. The information must state 
19.10 	the date that the notice will appear in the State Register and give the Web site location 
19.11 	for the State Register. The notice must:
19.12 	(1) describe the petition for creation of the district;
19.13 	(2) describe the territory affected by the petition; and
19.14 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
19.15 	for filing ten days after public notice of the order in the State Register.
19.16 		Subd. 9.Filing. Ten days after public notice of the order in the State Register, the 
19.17 	chief administrative law judge shall deliver a certified copy of the order to the secretary 
19.18 	of state for filing. Thereupon, the creation of the district is deemed complete, and it 
19.19 	shall be conclusively presumed that all requirements of law relating thereto have been 
19.20 	complied with. The chief administrative law judge shall also transmit a certified copy of 
19.21 	the order for filing to the county auditor of each county and the clerk or recorder of each 
19.22 	municipality and organized town wherein any part of the territory of the district is situated 
19.23 	and to the secretary of the district board when elected.

19.24 	Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
19.25 		Subdivision 1.Annexation. (a) A sanitary district annexation may occur under 
19.26 	this chapter for any area adjacent to an existing district upon a petition to the chief 
19.27 	administrative law judge stating the grounds therefor as provided in this section.
19.28 	(b) The proposed annexation area must embrace an area or a group of two or more 
19.29 	adjacent areas, whether contiguous or separate, but not situated entirely within the limits 
19.30 	of a single municipality. The proposed annexation must promote public health and 
19.31 	welfare by providing an adequate and efficient system and means of collecting, conveying, 
19.32 	pumping, treating, and disposing of domestic sewage and garbage and industrial wastes 
19.33 	within the district. When the chief administrative law judge or the Minnesota Pollution 
19.34 	Control Agency finds that there is need throughout the territory for the accomplishment of 
19.35 	these purposes, that these purposes can be effectively accomplished on an equitable basis 
20.1 	by annexation to a district, and that the creation and maintenance of such annexation will 
20.2 	be administratively feasible and in furtherance of the public health, safety, and welfare, 
20.3 	the chief administrative law judge shall make an order for sanitary district annexation. 
20.4 	A sanitary district is administratively feasible under this section if the district has the 
20.5 	financial and managerial resources needed to deliver adequate and efficient sanitary sewer 
20.6 	services within the proposed district.
20.7 	(c) Notwithstanding paragraph (b), no annexation to a district shall be approved 
20.8 	within 25 miles of the boundary of any city of the first class without the approval 
20.9 	of the governing body thereof and the approval of the governing body of each and 
20.10 	every municipality in the proposed annexation area by resolution filed with the chief 
20.11 	administrative law judge.
20.12 	(d) If the chief administrative law judge and the Minnesota Pollution Control Agency 
20.13 	disagree on the need for a sanitary district annexation, they must determine whether not 
20.14 	allowing the sanitary district annexation will have a detrimental effect on the environment. 
20.15 	If it is determined that the sanitary district annexation will prevent environmental harm, 
20.16 	the sanitary district annexation or connection to an existing wastewater treatment system 
20.17 	must occur.
20.18 		Subd. 2.Proceeding for annexation. (a) A proceeding for sanitary district 
20.19 	annexation may be initiated by a petition to the chief administrative law judge containing 
20.20 	the following:
20.21 	(1) a request for proposed annexation to a sanitary district;
20.22 	(2) a legal description of the territory of the proposed annexation, including 
20.23 	justification for inclusion or exclusion for all parcels;
20.24 	(3) addresses of every property owner within the existing sanitary district and 
20.25 	proposed annexation area boundaries as provided by the county auditor, with certification 
20.26 	from the county auditor; two sets of address labels for said owners; and a list of e-mail 
20.27 	addresses for said owners, if available;
20.28 	(4) a statement showing the existence in such territory of the conditions requisite 
20.29 	for annexation to a district as prescribed in subdivision 1;
20.30 	(5) a statement of the territorial units represented by and qualifications of the 
20.31 	respective signers; and
20.32 	(6) the post office address of each signer, given under the signer's signature.
20.33 	A petition may consist of separate writings of like effect, each signed by one or more 
20.34 	qualified persons, and all such writings, when filed, shall be considered together as a 
20.35 	single petition.
21.1 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
21.2 	proposed annexation to a sanitary district. At the meeting, information must be provided, 
21.3 	including a description of the existing sanitary district's structure, bylaws, territory, 
21.4 	ordinances, budget, and charges; a description of the existing sanitary district's territory; 
21.5 	and a description of the territory of the proposed annexation area, including justification 
21.6 	for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting 
21.7 	must be published for two successive weeks in a qualified newspaper, as defined under 
21.8 	chapter 331A, published within the territories of the existing sanitary district and proposed 
21.9 	annexation area or, if there is no qualified newspaper published within those territories, in 
21.10 	a qualified newspaper of general circulation in the territories, and must be posted for two 
21.11 	weeks in each territorial unit of the existing sanitary district and proposed annexation area 
21.12 	and on the Web site of the existing sanitary district, if one exists. Notice of the meeting 
21.13 	must be mailed or e-mailed at least three weeks prior to the meeting to all property tax 
21.14 	billing addresses for all parcels included in the existing sanitary district and proposed 
21.15 	annexation area. The following must be submitted to the chief administrative law judge 
21.16 	with the petition:
21.17 	(1) a record of the meeting, including copies of all information provided at the 
21.18 	meeting;
21.19 	(2) a copy of the mailing list provided by the county auditor and used to notify 
21.20 	property owners of the meeting;
21.21 	(3) a copy of the e-mail list used to notify property owners of the meeting;
21.22 	(4) the printer's affidavit of publication of the public meeting notice;
21.23 	(5) an affidavit of posting the public meeting notice with information on dates and 
21.24 	locations of posting; and
21.25 	(6) the minutes or other record of the public meeting documenting that the following 
21.26 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
21.27 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
21.28 	existing sanitary district Web site.
21.29 	(c) Every petition must be signed as follows:
21.30 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
21.31 	of the board;
21.32 	(2) for each municipality wherein there is a territorial unit of the proposed annexation 
21.33 	area, by an authorized officer pursuant to a resolution of the municipal governing body;
21.34 	(3) for each organized town wherein there is a territorial unit of the proposed 
21.35 	annexation area, by an authorized officer pursuant to a resolution of the town board; and
22.1 	(4) for each county wherein there is a territorial unit of the proposed annexation area 
22.2 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
22.3 	county board or by at least 20 percent of the voters residing and owning land within the unit.
22.4 	(d) Each resolution must be published in the official newspaper of the governing 
22.5 	body adopting it and becomes effective 40 days after publication, unless within said 
22.6 	period there shall be filed with the governing body a petition signed by qualified electors 
22.7 	of a territorial unit of the proposed annexation area, equal in number to five percent of the 
22.8 	number of electors voting at the last preceding election of the governing body, requesting 
22.9 	a referendum on the resolution, in which case the resolution may not become effective 
22.10 	until approved by a majority of the qualified electors voting at a regular election or special 
22.11 	election that the governing body may call. The notice of an election and the ballot to be 
22.12 	used must contain the text of the resolution followed by the question: "Shall the above 
22.13 	resolution be approved?"
22.14 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
22.15 	the signer's landowner status as shown by the county auditor's tax assessment records, 
22.16 	certified by the auditor, shall be attached to or endorsed upon the petition.
22.17 	(f) At any time before publication of the public notice required in subdivision 4, 
22.18 	additional signatures may be added to the petition or amendments of the petition may be 
22.19 	made to correct or remedy any error or defect in signature or otherwise except a material 
22.20 	error or defect in the description of the territory of the proposed annexation area. If the 
22.21 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
22.22 	shall determine the challenge forthwith on the allegations of the petition, the county 
22.23 	auditor's certificate of land ownership, and such other evidence as may be received.
22.24 		Subd. 3.Joint petition. Different areas may be annexed to a district in a single 
22.25 	proceeding upon a joint petition therefor and upon compliance with the provisions of 
22.26 	subdivisions 1 and 2 with respect to the area affected so far as applicable.
22.27 		Subd. 4.Notice of intent for sanitary district annexation. (a) Upon receipt 
22.28 	of a petition and the record of public meeting required under subdivision 2, the chief 
22.29 	administrative law judge shall publish a notice of intent for sanitary district annexation 
22.30 	in the State Register and mail or e-mail information of the publication to each property 
22.31 	owner in the affected territory at the owner's address as given by the county auditor. The 
22.32 	information must state the date that the notice will appear in the State Register and give 
22.33 	the Web site location for the State Register. The notice must:
22.34 	(1) describe the petition for sanitary district annexation;
22.35 	(2) describe the territory affected by the petition;
22.36 	(3) allow 30 days for submission of written comments on the petition;
23.1 	(4) state that a person who objects to the petition may submit a written request for 
23.2 	hearing to the chief administrative law judge within 30 days of the publication of the 
23.3 	notice in the State Register; and
23.4 	(5) state that if a timely request for hearing is not received, the chief administrative 
23.5 	law judge may make a decision on the petition.
23.6 	(b) If 50 or more individual timely requests for hearing are received, the chief 
23.7 	administrative law judge must hold a hearing on the petition according to the contested case 
23.8 	provisions of chapter 14. The sanitary district or annexation area proposers are responsible 
23.9 	for paying all costs involved in publicizing and holding a hearing on the petition.
23.10 		Subd. 5.Hearing time, place. If a hearing is required under subdivision 4, the 
23.11 	chief administrative law judge shall designate a time and place for a hearing according 
23.12 	to section 442A.13.
23.13 		Subd. 6.Relevant factors. (a) In arriving at a decision, the chief administrative law 
23.14 	judge shall consider the following factors:
23.15 	(1) administrative feasibility under subdivision 1, paragraph (b);
23.16 	(2) public health, safety, and welfare impacts;
23.17 	(3) alternatives for managing the public health impacts;
23.18 	(4) equities of the petition proposal;
23.19 	(5) contours of the petition proposal; and
23.20 	(6) public notification of and interaction on the petition proposal.
23.21 	(b) Based upon these factors, the chief administrative law judge may order the 
23.22 	annexation to the sanitary district on finding that:
23.23 	(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer 
23.24 	services to ratepayers and has provided quality service in a fair and cost-effective manner;
23.25 	(2) the proposed annexation provides a long-term, equitable solution to pollution 
23.26 	problems affecting public health, safety, and welfare;
23.27 	(3) property owners within the existing sanitary district and proposed annexation 
23.28 	area were provided notice of the proposed district and opportunity to comment on the 
23.29 	petition proposal; and
23.30 	(4) the petition complied with the requirements of all applicable statutes and rules 
23.31 	pertaining to sanitary district annexation.
23.32 	(c) The chief administrative law judge may alter the boundaries of the proposed 
23.33 	annexation area by increasing or decreasing the area to be included or may exclude 
23.34 	property that may be better served by another unit of government. The chief administrative 
23.35 	law judge may also alter the boundaries of the proposed annexation area so as to follow 
23.36 	visible, clearly recognizable physical features for municipal boundaries.
24.1 	(d) The chief administrative law judge may deny sanitary district annexation if the 
24.2 	area, or a part thereof, would be better served by an alternative method.
24.3 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
24.4 	the basis for the decision.
24.5 		Subd. 7.Findings; order. (a) After the public notice period or the public hearing, if 
24.6 	required under subdivision 4, and based on the petition, any public comments received, 
24.7 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
24.8 	make findings of fact and conclusions determining whether the conditions requisite for 
24.9 	the sanitary district annexation exist in the territory described in the petition. If the chief 
24.10 	administrative law judge finds that conditions exist, the judge may make an order for 
24.11 	sanitary district annexation for the territory described in the petition.
24.12 	(b) All taxable property within the annexed area shall be subject to taxation for 
24.13 	any existing bonded indebtedness or other indebtedness of the district for the cost of 
24.14 	acquisition, construction, or improvement of any disposal system or other works or 
24.15 	facilities beneficial to the annexed area to such extent as the chief administrative law judge 
24.16 	may determine to be just and equitable, to be specified in the order for annexation. The 
24.17 	proper officers shall levy further taxes on such property accordingly.
24.18 		Subd. 8.Denial of petition. If the chief administrative law judge, after conclusion 
24.19 	of the public notice period or holding a hearing, if required, determines that the sanitary 
24.20 	district annexation in the territory described in the petition is not warranted, the judge shall 
24.21 	make an order denying the petition. The chief administrative law judge shall give notice 
24.22 	of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary 
24.23 	district annexation consisting of the same territory shall be entertained within a year 
24.24 	after the date of an order under this subdivision. Nothing in this subdivision precludes 
24.25 	action on a petition for a sanitary district annexation embracing part of the territory with 
24.26 	or without other territory.
24.27 		Subd. 9.Notice of order for sanitary district annexation. The chief administrative 
24.28 	law judge shall publish in the State Register a notice of the final order for sanitary district 
24.29 	annexation, referring to the date of the order and describing the territory of the annexation 
24.30 	area, and shall mail or e-mail information of the publication to each property owner in the 
24.31 	affected territory at the owner's address as given by the county auditor. The information 
24.32 	must state the date that the notice will appear in the State Register and give the Web site 
24.33 	location for the State Register. The notice must:
24.34 	(1) describe the petition for annexation to the district;
24.35 	(2) describe the territory affected by the petition; and
25.1 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
25.2 	for filing ten days after public notice of the order in the State Register.
25.3 		Subd. 10.Filing. Ten days after public notice of the order in the State Register, the 
25.4 	chief administrative law judge shall deliver a certified copy of the order to the secretary 
25.5 	of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it 
25.6 	shall be conclusively presumed that all requirements of law relating thereto have been 
25.7 	complied with. The chief administrative law judge shall also transmit a certified copy of 
25.8 	the order for filing to the county auditor of each county and the clerk or recorder of each 
25.9 	municipality and organized town wherein any part of the territory of the district, including 
25.10 	the newly annexed area, is situated and to the secretary of the district board.

25.11 	Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
25.12 		Subdivision 1.Detachment. (a) A sanitary district detachment may occur under this 
25.13 	chapter for any area within an existing district upon a petition to the chief administrative 
25.14 	law judge stating the grounds therefor as provided in this section.
25.15 	(b) The proposed detachment must not have any negative environmental impact 
25.16 	on the proposed detachment area.
25.17 	(c) If the chief administrative law judge and the Minnesota Pollution Control 
25.18 	Agency disagree on the need for a sanitary district detachment, they must determine 
25.19 	whether not allowing the sanitary district detachment will have a detrimental effect on 
25.20 	the environment. If it is determined that the sanitary district detachment will cause 
25.21 	environmental harm, the sanitary district detachment is not allowed unless the detached 
25.22 	area is immediately connected to an existing wastewater treatment system.
25.23 		Subd. 2.Proceeding for detachment. (a) A proceeding for sanitary district 
25.24 	detachment may be initiated by a petition to the chief administrative law judge containing 
25.25 	the following:
25.26 	(1) a request for proposed detachment from a sanitary district;
25.27 	(2) a statement that the requisite conditions for inclusion in a district no longer exist 
25.28 	in the proposed detachment area;
25.29 	(3) a legal description of the territory of the proposed detachment, including 
25.30 	justification for inclusion or exclusion for all parcels;
25.31 	(4) addresses of every property owner within the sanitary district and proposed 
25.32 	detachment area boundaries as provided by the county auditor, with certification from the 
25.33 	county auditor; two sets of address labels for said owners; and a list of e-mail addresses 
25.34 	for said owners, if available;
26.1 	(5) a statement of the territorial units represented by and qualifications of the 
26.2 	respective signers; and
26.3 	(6) the post office address of each signer, given under the signer's signature.
26.4 	A petition may consist of separate writings of like effect, each signed by one or more 
26.5 	qualified persons, and all such writings, when filed, shall be considered together as a 
26.6 	single petition.
26.7 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of 
26.8 	the proposed detachment from a sanitary district. At the meeting, information must be 
26.9 	provided, including a description of the existing district's territory and a description of the 
26.10 	territory of the proposed detachment area, including justification for inclusion or exclusion 
26.11 	for all parcels for the detachment area. Notice of the meeting must be published for two 
26.12 	successive weeks in a qualified newspaper, as defined under chapter 331A, published 
26.13 	within the territories of the existing sanitary district and proposed detachment area or, if 
26.14 	there is no qualified newspaper published within those territories, in a qualified newspaper 
26.15 	of general circulation in the territories, and must be posted for two weeks in each territorial 
26.16 	unit of the existing sanitary district and proposed detachment area and on the Web site 
26.17 	of the existing sanitary district, if one exists. Notice of the meeting must be mailed or 
26.18 	e-mailed at least three weeks prior to the meeting to all property tax billing addresses for 
26.19 	all parcels included in the sanitary district. The following must be submitted to the chief 
26.20 	administrative law judge with the petition:
26.21 	(1) a record of the meeting, including copies of all information provided at the 
26.22 	meeting;
26.23 	(2) a copy of the mailing list provided by the county auditor and used to notify 
26.24 	property owners of the meeting;
26.25 	(3) a copy of the e-mail list used to notify property owners of the meeting;
26.26 	(4) the printer's affidavit of publication of public meeting notice;
26.27 	(5) an affidavit of posting the public meeting notice with information on dates and 
26.28 	locations of posting; and
26.29 	(6) minutes or other record of the public meeting documenting that the following 
26.30 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
26.31 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
26.32 	existing sanitary district Web site.
26.33 	(c) Every petition must be signed as follows:
26.34 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
26.35 	of the board;
27.1 	(2) for each municipality wherein there is a territorial unit of the proposed detachment 
27.2 	area, by an authorized officer pursuant to a resolution of the municipal governing body;
27.3 	(3) for each organized town wherein there is a territorial unit of the proposed 
27.4 	detachment area, by an authorized officer pursuant to a resolution of the town board; and
27.5 	(4) for each county wherein there is a territorial unit of the proposed detachment area 
27.6 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
27.7 	county board or by at least 20 percent of the voters residing and owning land within the unit.
27.8 	(d) Each resolution must be published in the official newspaper of the governing 
27.9 	body adopting it and becomes effective 40 days after publication, unless within said period 
27.10 	there shall be filed with the governing body a petition signed by qualified electors of a 
27.11 	territorial unit of the proposed detachment area, equal in number to five percent of the 
27.12 	number of electors voting at the last preceding election of the governing body, requesting 
27.13 	a referendum on the resolution, in which case the resolution may not become effective 
27.14 	until approved by a majority of the qualified electors voting at a regular election or special 
27.15 	election that the governing body may call. The notice of an election and the ballot to be 
27.16 	used must contain the text of the resolution followed by the question: "Shall the above 
27.17 	resolution be approved?"
27.18 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
27.19 	the signer's landowner status as shown by the county auditor's tax assessment records, 
27.20 	certified by the auditor, shall be attached to or endorsed upon the petition.
27.21 	(f) At any time before publication of the public notice required in subdivision 4, 
27.22 	additional signatures may be added to the petition or amendments of the petition may be 
27.23 	made to correct or remedy any error or defect in signature or otherwise except a material 
27.24 	error or defect in the description of the territory of the proposed detachment area. If the 
27.25 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
27.26 	shall determine the challenge forthwith on the allegations of the petition, the county 
27.27 	auditor's certificate of land ownership, and such other evidence as may be received.
27.28 		Subd. 3.Joint petition. Different areas may be detached from a district in a single 
27.29 	proceeding upon a joint petition therefor and upon compliance with the provisions of 
27.30 	subdivisions 1 and 2 with respect to the area affected so far as applicable.
27.31 		Subd. 4.Notice of intent for sanitary district detachment. (a) Upon receipt 
27.32 	of a petition and record of public meeting required under subdivision 2, the chief 
27.33 	administrative law judge shall publish a notice of intent for sanitary district detachment 
27.34 	in the State Register and mail or e-mail information of the publication to each property 
27.35 	owner in the affected territory at the owner's address as given by the county auditor. The 
28.1 	information must state the date that the notice will appear in the State Register and give 
28.2 	the Web site location for the State Register. The notice must:
28.3 	(1) describe the petition for sanitary district detachment;
28.4 	(2) describe the territory affected by the petition;
28.5 	(3) allow 30 days for submission of written comments on the petition;
28.6 	(4) state that a person who objects to the petition may submit a written request for 
28.7 	hearing to the chief administrative law judge within 30 days of the publication of the 
28.8 	notice in the State Register; and
28.9 	(5) state that if a timely request for hearing is not received, the chief administrative 
28.10 	law judge may make a decision on the petition.
28.11 	(b) If 50 or more individual timely requests for hearing are received, the chief 
28.12 	administrative law judge must hold a hearing on the petition according to the contested case 
28.13 	provisions of chapter 14. The sanitary district or detachment area proposers are responsible 
28.14 	for paying all costs involved in publicizing and holding a hearing on the petition.
28.15 		Subd. 5.Hearing time, place. If a hearing is required under subdivision 4, the 
28.16 	chief administrative law judge shall designate a time and place for a hearing according 
28.17 	to section 442A.13.
28.18 		Subd. 6.Relevant factors. (a) In arriving at a decision, the chief administrative law 
28.19 	judge shall consider the following factors:
28.20 	(1) public health, safety, and welfare impacts for the proposed detachment area;
28.21 	(2) alternatives for managing the public health impacts for the proposed detachment 
28.22 	area;
28.23 	(3) equities of the petition proposal;
28.24 	(4) contours of the petition proposal; and
28.25 	(5) public notification of and interaction on the petition proposal.
28.26 	(b) Based upon these factors, the chief administrative law judge may order the 
28.27 	detachment from the sanitary district on finding that:
28.28 	(1) the proposed detachment area has adequate alternatives for managing public 
28.29 	health impacts due to the detachment;
28.30 	(2) the proposed detachment area is not necessary for the district to provide a 
28.31 	long-term, equitable solution to pollution problems affecting public health, safety, and 
28.32 	welfare;
28.33 	(3) property owners within the existing sanitary district and proposed detachment 
28.34 	area were provided notice of the proposed detachment and opportunity to comment on 
28.35 	the petition proposal; and
29.1 	(4) the petition complied with the requirements of all applicable statutes and rules 
29.2 	pertaining to sanitary district detachment.
29.3 	(c) The chief administrative law judge may alter the boundaries of the proposed 
29.4 	detachment area by increasing or decreasing the area to be included or may exclude 
29.5 	property that may be better served by another unit of government. The chief administrative 
29.6 	law judge may also alter the boundaries of the proposed detachment area so as to follow 
29.7 	visible, clearly recognizable physical features for municipal boundaries.
29.8 	(d) The chief administrative law judge may deny sanitary district detachment if the 
29.9 	area, or a part thereof, would be better served by an alternative method.
29.10 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
29.11 	the basis for the decision.
29.12 		Subd. 7.Findings; order. (a) After the public notice period or the public hearing, if 
29.13 	required under subdivision 4, and based on the petition, any public comments received, 
29.14 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
29.15 	make findings of fact and conclusions determining whether the conditions requisite for 
29.16 	the sanitary district detachment exist in the territory described in the petition. If the chief 
29.17 	administrative law judge finds that conditions exist, the judge may make an order for 
29.18 	sanitary district detachment for the territory described in the petition.
29.19 	(b) All taxable property within the detached area shall remain subject to taxation 
29.20 	for any existing bonded indebtedness of the district to such extent as it would have been 
29.21 	subject thereto if not detached and shall also remain subject to taxation for any other 
29.22 	existing indebtedness of the district incurred for any purpose beneficial to such area to 
29.23 	such extent as the chief administrative law judge may determine to be just and equitable, 
29.24 	to be specified in the order for detachment. The proper officers shall levy further taxes on 
29.25 	such property accordingly.
29.26 		Subd. 8.Denial of petition. If the chief administrative law judge, after conclusion 
29.27 	of the public notice period or holding a hearing, if required, determines that the sanitary 
29.28 	district detachment in the territory described in the petition is not warranted, the judge 
29.29 	shall make an order denying the petition. The chief administrative law judge shall give 
29.30 	notice of the denial by mail or e-mail to each signer of the petition. No petition for a 
29.31 	detachment from a district consisting of the same territory shall be entertained within a 
29.32 	year after the date of an order under this subdivision. Nothing in this subdivision precludes 
29.33 	action on a petition for a detachment from a district embracing part of the territory with 
29.34 	or without other territory.
29.35 		Subd. 9.Notice of order for sanitary district detachment. The chief 
29.36 	administrative law judge shall publish in the State Register a notice of the final order 
30.1 	for sanitary district detachment, referring to the date of the order and describing the 
30.2 	territory of the detached area and shall mail or e-mail information of the publication 
30.3 	to each property owner in the affected territory at the owner's address as given by the 
30.4 	county auditor. The information must state the date that the notice will appear in the State 
30.5 	Register and give the Web site location for the State Register. The notice must:
30.6 	(1) describe the petition for detachment from the district;
30.7 	(2) describe the territory affected by the petition; and
30.8 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
30.9 	for filing ten days after public notice of the order in the State Register.
30.10 		Subd. 10.Filing. Ten days after public notice of the order in the State Register, the 
30.11 	chief administrative law judge shall deliver a certified copy of the order to the secretary of 
30.12 	state for filing. Thereupon, the sanitary district detachment is deemed complete, and it 
30.13 	shall be conclusively presumed that all requirements of law relating thereto have been 
30.14 	complied with. The chief administrative law judge shall also transmit a certified copy of 
30.15 	the order for filing to the county auditor of each county and the clerk or recorder of each 
30.16 	municipality and organized town wherein any part of the territory of the district, including 
30.17 	the newly detached area, is situated and to the secretary of the district board.

30.18 	Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
30.19 		Subdivision 1.Dissolution. (a) An existing sanitary district may be dissolved under 
30.20 	this chapter upon a petition to the chief administrative law judge stating the grounds 
30.21 	therefor as provided in this section.
30.22 	(b) The proposed dissolution must not have any negative environmental impact on 
30.23 	the existing sanitary district area.
30.24 	(c) If the chief administrative law judge and the Minnesota Pollution Control 
30.25 	Agency disagree on the need to dissolve a sanitary district, they must determine whether 
30.26 	not dissolving the sanitary district will have a detrimental effect on the environment. If 
30.27 	it is determined that the sanitary district dissolution will cause environmental harm, the 
30.28 	sanitary district dissolution is not allowed unless the existing sanitary district area is 
30.29 	immediately connected to an existing wastewater treatment system.
30.30 		Subd. 2.Proceeding for dissolution. (a) A proceeding for sanitary district 
30.31 	dissolution may be initiated by a petition to the chief administrative law judge containing 
30.32 	the following:
30.33 	(1) a request for proposed sanitary district dissolution;
30.34 	(2) a statement that the requisite conditions for a sanitary district no longer exist 
30.35 	in the district area;
31.1 	(3) a proposal for distribution of the remaining funds of the district, if any, among 
31.2 	the related governmental subdivisions;
31.3 	(4) a legal description of the territory of the proposed dissolution;
31.4 	(5) addresses of every property owner within the sanitary district boundaries as 
31.5 	provided by the county auditor, with certification from the county auditor; two sets of 
31.6 	address labels for said owners; and a list of e-mail addresses for said owners, if available;
31.7 	(6) a statement of the territorial units represented by and the qualifications of the 
31.8 	respective signers; and
31.9 	(7) the post office address of each signer, given under the signer's signature.
31.10 	A petition may consist of separate writings of like effect, each signed by one or more 
31.11 	qualified persons, and all such writings, when filed, shall be considered together as a 
31.12 	single petition.
31.13 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
31.14 	proposed dissolution of a sanitary district. At the meeting, information must be provided, 
31.15 	including a description of the existing district's territory. Notice of the meeting must be 
31.16 	published for two successive weeks in a qualified newspaper, as defined under chapter 
31.17 	331A, published within the territory of the sanitary district or, if there is no qualified 
31.18 	newspaper published within that territory, in a qualified newspaper of general circulation 
31.19 	in the territory and must be posted for two weeks in each territorial unit of the sanitary 
31.20 	district and on the Web site of the existing sanitary district, if one exists. Notice of the 
31.21 	meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property 
31.22 	tax billing addresses for all parcels included in the sanitary district. The following must be 
31.23 	submitted to the chief administrative law judge with the petition:
31.24 	(1) a record of the meeting, including copies of all information provided at the 
31.25 	meeting;
31.26 	(2) a copy of the mailing list provided by the county auditor and used to notify 
31.27 	property owners of the meeting;
31.28 	(3) a copy of the e-mail list used to notify property owners of the meeting;
31.29 	(4) the printer's affidavit of publication of public meeting notice;
31.30 	(5) an affidavit of posting the public meeting notice with information on dates and 
31.31 	locations of posting; and 
31.32 	(6) minutes or other record of the public meeting documenting that the following 
31.33 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
31.34 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
31.35 	existing sanitary district Web site.
31.36 	(c) Every petition must be signed as follows:
32.1 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
32.2 	of the board;
32.3 	(2) for each municipality wherein there is a territorial unit of the existing sanitary 
32.4 	district, by an authorized officer pursuant to a resolution of the municipal governing body;
32.5 	(3) for each organized town wherein there is a territorial unit of the existing sanitary 
32.6 	district, by an authorized officer pursuant to a resolution of the town board; and
32.7 	(4) for each county wherein there is a territorial unit of the existing sanitary district 
32.8 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
32.9 	county board or by at least 20 percent of the voters residing and owning land within the unit.
32.10 	(d) Each resolution must be published in the official newspaper of the governing body 
32.11 	adopting it and becomes effective 40 days after publication, unless within said period there 
32.12 	shall be filed with the governing body a petition signed by qualified electors of a territorial 
32.13 	unit of the district, equal in number to five percent of the number of electors voting at the 
32.14 	last preceding election of the governing body, requesting a referendum on the resolution, 
32.15 	in which case the resolution may not become effective until approved by a majority of the 
32.16 	qualified electors voting at a regular election or special election that the governing body 
32.17 	may call. The notice of an election and the ballot to be used must contain the text of the 
32.18 	resolution followed by the question: "Shall the above resolution be approved?"
32.19 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
32.20 	the signer's landowner status as shown by the county auditor's tax assessment records, 
32.21 	certified by the auditor, shall be attached to or endorsed upon the petition.
32.22 	(f) At any time before publication of the public notice required in subdivision 3, 
32.23 	additional signatures may be added to the petition or amendments of the petition may be 
32.24 	made to correct or remedy any error or defect in signature or otherwise except a material 
32.25 	error or defect in the description of the territory of the proposed dissolution area. If the 
32.26 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
32.27 	shall determine the challenge forthwith on the allegations of the petition, the county 
32.28 	auditor's certificate of land ownership, and such other evidence as may be received.
32.29 		Subd. 3.Notice of intent for sanitary district dissolution. (a) Upon receipt 
32.30 	of a petition and record of the public meeting required under subdivision 2, the chief 
32.31 	administrative law judge shall publish a notice of intent of sanitary district dissolution 
32.32 	in the State Register and mail or e-mail information of the publication to each property 
32.33 	owner in the affected territory at the owner's address as given by the county auditor. The 
32.34 	information must state the date that the notice will appear in the State Register and give 
32.35 	the Web site location for the State Register. The notice must:
32.36 	(1) describe the petition for sanitary district dissolution;
33.1 	(2) describe the territory affected by the petition;
33.2 	(3) allow 30 days for submission of written comments on the petition;
33.3 	(4) state that a person who objects to the petition may submit a written request for 
33.4 	hearing to the chief administrative law judge within 30 days of the publication of the 
33.5 	notice in the State Register; and
33.6 	(5) state that if a timely request for hearing is not received, the chief administrative 
33.7 	law judge may make a decision on the petition.
33.8 	(b) If 50 or more individual timely requests for hearing are received, the chief 
33.9 	administrative law judge must hold a hearing on the petition according to the contested 
33.10 	case provisions of chapter 14. The sanitary district dissolution proposers are responsible 
33.11 	for paying all costs involved in publicizing and holding a hearing on the petition.
33.12 		Subd. 4.Hearing time, place. If a hearing is required under subdivision 3, the 
33.13 	chief administrative law judge shall designate a time and place for a hearing according 
33.14 	to section 442A.13.
33.15 		Subd. 5.Relevant factors. (a) In arriving at a decision, the chief administrative law 
33.16 	judge shall consider the following factors:
33.17 	(1) public health, safety, and welfare impacts for the proposed dissolution;
33.18 	(2) alternatives for managing the public health impacts for the proposed dissolution;
33.19 	(3) equities of the petition proposal;
33.20 	(4) contours of the petition proposal; and
33.21 	(5) public notification of and interaction on the petition proposal.
33.22 	(b) Based upon these factors, the chief administrative law judge may order the 
33.23 	dissolution of the sanitary district on finding that:
33.24 	(1) the proposed dissolution area has adequate alternatives for managing public 
33.25 	health impacts due to the dissolution;
33.26 	(2) the sanitary district is not necessary to provide a long-term, equitable solution to 
33.27 	pollution problems affecting public health, safety, and welfare;
33.28 	(3) property owners within the sanitary district were provided notice of the proposed 
33.29 	dissolution and opportunity to comment on the petition proposal; and
33.30 	(4) the petition complied with the requirements of all applicable statutes and rules 
33.31 	pertaining to sanitary district dissolution.
33.32 	(c) The chief administrative law judge may alter the boundaries of the proposed 
33.33 	dissolution area by increasing or decreasing the area to be included or may exclude 
33.34 	property that may be better served by another unit of government. The chief administrative 
33.35 	law judge may also alter the boundaries of the proposed dissolution area so as to follow 
33.36 	visible, clearly recognizable physical features for municipal boundaries.
34.1 	(d) The chief administrative law judge may deny sanitary district dissolution if the 
34.2 	area, or a part thereof, would be better served by an alternative method.
34.3 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
34.4 	the basis for the decision.
34.5 		Subd. 6.Findings; order. (a) After the public notice period or the public hearing, if 
34.6 	required under subdivision 3, and based on the petition, any public comments received, 
34.7 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
34.8 	make findings of fact and conclusions determining whether the conditions requisite for 
34.9 	the sanitary district dissolution exist in the territory described in the petition. If the chief 
34.10 	administrative law judge finds that conditions exist, the judge may make an order for 
34.11 	sanitary district dissolution for the territory described in the petition.
34.12 	(b) If the chief administrative law judge determines that the conditions requisite for 
34.13 	the creation of the district no longer exist therein, that all indebtedness of the district has 
34.14 	been paid, and that all property of the district except funds has been disposed of, the judge 
34.15 	may make an order dissolving the district and directing the distribution of its remaining 
34.16 	funds, if any, among the related governmental subdivisions on such basis as the chief 
34.17 	administrative law judge determines to be just and equitable, to be specified in the order.
34.18 		Subd. 7.Denial of petition. If the chief administrative law judge, after conclusion 
34.19 	of the public notice period or holding a hearing, if required, determines that the sanitary 
34.20 	district dissolution in the territory described in the petition is not warranted, the judge 
34.21 	shall make an order denying the petition. The chief administrative law judge shall give 
34.22 	notice of the denial by mail or e-mail to each signer of the petition. No petition for the 
34.23 	dissolution of a district consisting of the same territory shall be entertained within a year 
34.24 	after the date of an order under this subdivision.
34.25 		Subd. 8.Notice of order for sanitary district dissolution. The chief administrative 
34.26 	law judge shall publish in the State Register a notice of the final order for sanitary 
34.27 	district dissolution, referring to the date of the order and describing the territory of the 
34.28 	dissolved district and shall mail or e-mail information of the publication to each property 
34.29 	owner in the affected territory at the owner's address as given by the county auditor. The 
34.30 	information must state the date that the notice will appear in the State Register and give 
34.31 	the Web site location of the State Register. The notice must:
34.32 	(1) describe the petition for dissolution of the district;
34.33 	(2) describe the territory affected by the petition; and
34.34 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
34.35 	for filing ten days after public notice of the order in the State Register.
35.1 		Subd. 9.Filing. (a) Ten days after public notice of the order in the State Register, 
35.2 	the chief administrative law judge shall deliver a certified copy of the order to the secretary 
35.3 	of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it 
35.4 	shall be conclusively presumed that all requirements of law relating thereto have been 
35.5 	complied with. The chief administrative law judge shall also transmit a certified copy of 
35.6 	the order for filing to the county auditor of each county and the clerk or recorder of each 
35.7 	municipality and organized town wherein any part of the territory of the dissolved district 
35.8 	is situated and to the secretary of the district board.
35.9 	(b) The chief administrative law judge shall also transmit a certified copy of the order 
35.10 	to the treasurer of the district, who must thereupon distribute the remaining funds of the 
35.11 	district as directed by the order and who is responsible for the funds until so distributed.

35.12 	Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
35.13 	There must be a joint public informational meeting of the local governments of any 
35.14 	proposed sanitary district creation, annexation, detachment, or dissolution. The joint public 
35.15 	informational meeting must be held after the final mediation meeting or the final meeting 
35.16 	held according to section 442A.02, subdivision 8, if any, and before the hearing on the 
35.17 	matter is held. If no mediation meetings are held, the joint public informational meeting 
35.18 	must be held after the initiating documents have been filed and before the hearing on the 
35.19 	matter. The time, date, and place of the public informational meeting must be determined 
35.20 	jointly by the local governments in the proposed creation, annexation, detachment, or 
35.21 	dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district, 
35.22 	if one exists, and the responsible official for one of the local governments represented at 
35.23 	the meeting must serve as the co-chairs for the informational meeting. Notice of the time, 
35.24 	date, place, and purpose of the informational meeting must be posted by the sanitary 
35.25 	district, if one exists, and local governments in designated places for posting notices. The 
35.26 	sanitary district, if one exists, and represented local governments must also publish, at their 
35.27 	own expense, notice in their respective official newspapers. If the same official newspaper 
35.28 	is used by multiple local government representatives or the sanitary district, a joint notice 
35.29 	may be published and the costs evenly divided. All notice required by this section must 
35.30 	be provided at least ten days before the date for the public informational meeting. At the 
35.31 	public informational meeting, all persons appearing must have an opportunity to be heard, 
35.32 	but the co-chairs may, by mutual agreement, establish the amount of time allowed for each 
35.33 	speaker. The sanitary district board, the local government representatives, and any resident 
35.34 	or affected property owner may be represented by counsel and may place into the record of 
35.35 	the informational meeting documents, expert opinions, or other materials supporting their 
36.1 	positions on issues raised by the proposed proceeding. The secretary of the sanitary district, 
36.2 	if one exists, or a person appointed by the chair must record minutes of the proceedings of 
36.3 	the informational meeting and must make an audio recording of the informational meeting. 
36.4 	The sanitary district, if one exists, or a person appointed by the chair must provide the 
36.5 	chief administrative law judge and the represented local governments with a copy of the 
36.6 	printed minutes and must provide the chief administrative law judge and the represented 
36.7 	local governments with a copy of the audio recording. The record of the informational 
36.8 	meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is 
36.9 	admissible in any proceeding under this chapter and shall be taken into consideration by 
36.10 	the chief administrative law judge or the chief administrative law judge's designee.

36.11 	Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL 
36.12 	AGENCY.
36.13 		Subdivision 1.Annexation by ordinance alternative.  If a determination or order 
36.14 	by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is 
36.15 	made that cooperation by contract is necessary and feasible between a sanitary district and 
36.16 	an unincorporated area located outside the existing corporate limits of the sanitary district, 
36.17 	the sanitary district required to provide or extend through a contract a governmental 
36.18 	service to an unincorporated area, during the statutory 90-day period provided in section 
36.19 	115.49 to formulate a contract, may in the alternative to formulating a service contract to 
36.20 	provide or extend the service, declare the unincorporated area described in the Minnesota 
36.21 	Pollution Control Agency's determination letter or order annexed to the sanitary district by 
36.22 	adopting an ordinance and submitting it to the chief administrative law judge.
36.23 		Subd. 2.Chief administrative law judge's role.  The chief administrative law 
36.24 	judge may review and comment on the ordinance but shall approve the ordinance within 
36.25 	30 days of receipt. The ordinance is final and the annexation is effective on the date the 
36.26 	chief administrative law judge approves the ordinance.

36.27 	Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
36.28 	Expenses of the preparation and submission of petitions in the proceedings under 
36.29 	sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section 
36.30 	16A.1283, the Office of Administrative Hearings may adopt rules according to section 
36.31 	14.386 to establish fees necessary to support the preparation and submission of petitions 
36.32 	in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of 
36.33 	Administrative Hearings shall be deposited in the environmental fund.

36.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.1 	Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
37.2 		Subdivision 1.Orders; time limit. All orders in proceedings under this chapter 
37.3 	shall be issued within one year from the date of the first hearing thereon, provided that 
37.4 	the time may be extended for a fixed additional period upon consent of all parties of 
37.5 	record. Failure to so order shall be deemed to be an order denying the matter. An appeal 
37.6 	may be taken from such failure to so order in the same manner as an appeal from an 
37.7 	order as provided in subdivision 2.
37.8 		Subd. 2.Grounds for appeal. (a) Any person aggrieved by an order issued under 
37.9 	this chapter may appeal to the district court upon the following grounds:
37.10 	(1) the order was issued without jurisdiction to act;
37.11 	(2) the order exceeded the jurisdiction of the presiding administrative law judge;
37.12 	(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable 
37.13 	disregard of the best interests of the territory affected; or
37.14 	(4) the order was based upon an erroneous theory of law.
37.15 	(b) The appeal must be taken in the district court in the county in which the majority 
37.16 	of the area affected is located. The appeal does not stay the effect of the order. All notices 
37.17 	and other documents must be served on both the chief administrative law judge and the 
37.18 	attorney general's assistant assigned to the chief administrative law judge for purposes 
37.19 	of this chapter.
37.20 	(c) If the court determines that the action involved is unlawful or unreasonable or is 
37.21 	not warranted by the evidence in case an issue of fact is involved, the court may vacate or 
37.22 	suspend the action involved, in whole or in part, as the case requires. The matter shall then 
37.23 	be remanded for further action in conformity with the decision of the court.
37.24 	(d) To render a review of an order effectual, the aggrieved person shall file with the 
37.25 	court administrator of the district court of the county in which the majority of the area is 
37.26 	located, within 30 days of the order, an application for review together with the grounds 
37.27 	upon which the review is sought.
37.28 	(e) An appeal lies from the district court as in other civil cases.

37.29 	Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL 
37.30 	FROM DISTRICT COURT.
37.31 	An appeal may be taken under the Rules of Civil Appellate Procedure by the chief 
37.32 	administrative law judge from a final order or judgment made or rendered by the district 
37.33 	court when the chief administrative law judge determines that the final order or judgment 
37.34 	adversely affects the public interest.

38.1 	Sec. 15. [442A.13] UNIFORM PROCEDURES.
38.2 		Subdivision 1.Hearings. (a) Proceedings initiated by the submission of an initiating 
38.3 	document or by the chief administrative law judge shall come on for hearing within 30 to 
38.4 	60 days from receipt of the document by the chief administrative law judge or from the 
38.5 	date of the chief administrative law judge's action and the person conducting the hearing 
38.6 	must submit an order no later than one year from the date of the first hearing.
38.7 	(b) The place of the hearing shall be in the county where a majority of the affected 
38.8 	territory is situated, and shall be established for the convenience of the parties.
38.9 	(c) The chief administrative law judge shall mail notice of the hearing to the 
38.10 	following parties: the sanitary district; any township or municipality presently governing 
38.11 	the affected territory; any township or municipality abutting the affected territory; 
38.12 	the county where the affected territory is situated; and each planning agency that has 
38.13 	jurisdiction over the affected area.
38.14 	(d) The chief administrative law judge shall see that notice of the hearing is published 
38.15 	for two successive weeks in a legal newspaper of general circulation in the affected area.
38.16 	(e) When the chief administrative law judge exercises authority to change the 
38.17 	boundaries of the affected area so as to increase the quantity of land, the hearing shall 
38.18 	be recessed and reconvened upon two weeks' published notice in a legal newspaper of 
38.19 	general circulation in the affected area.
38.20 		Subd. 2.Transmittal of order. The chief administrative law judge shall see that 
38.21 	copies of the order are mailed to all parties entitled to mailed notice of hearing under 
38.22 	subdivision 1, individual property owners if initiated in that manner, and any other party 
38.23 	of record.

38.24 	Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
38.25 		Subdivision 1.Composition. The governing body of each district shall be a board 
38.26 	of managers of five members, who shall be voters residing in the district and who may 
38.27 	but need not be officers, members of governing bodies, or employees of the related 
38.28 	governmental subdivisions, except that when there are more than five territorial units in 
38.29 	a district, there must be one board member for each unit.
38.30 		Subd. 2.Terms. The terms of the first board members elected after creation of a 
38.31 	district shall be so arranged and determined by the electing body as to expire on the first 
38.32 	business day in January as follows:
38.33 	(1) the terms of two members in the second calendar year after the year in which 
38.34 	they were elected;
39.1 	(2) the terms of two other members in the third calendar year after the year in which 
39.2 	they were elected; and
39.3 	(3) the term of the remaining member in the fourth calendar year after the year in 
39.4 	which the member was elected. In case a board has more than five members, the additional 
39.5 	members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as 
39.6 	far as practicable. Thereafter, board members shall be elected successively for regular 
39.7 	terms beginning upon expiration of the preceding terms and expiring on the first business 
39.8 	day in January of the third calendar year thereafter. Each board member serves until 
39.9 	a successor is elected and has qualified.
39.10 		Subd. 3.Election of board. In a district having only one territorial unit, all the 
39.11 	members of the board shall be elected by the related governing body. In a district having 
39.12 	more than one territorial unit, the members of the board shall be elected by the members 
39.13 	of the related governing bodies in joint session except as otherwise provided. The electing 
39.14 	bodies concerned shall meet and elect the first board members of a new district as soon 
39.15 	as practicable after creation of the district and shall meet and elect board members for 
39.16 	succeeding regular terms as soon as practicable after November 1 next preceding the 
39.17 	beginning of the terms to be filled, respectively.
39.18 		Subd. 4.Central related governing body. Upon the creation of a district 
39.19 	having more than one territorial unit, the chief administrative law judge, on the basis of 
39.20 	convenience for joint meeting purposes, shall designate one of the related governing 
39.21 	bodies as the central related governing body in the order creating the district or in a 
39.22 	subsequent special order, of which the chief administrative law judge shall notify the 
39.23 	clerks or recorders of all the related governing bodies. Upon receipt of the notification, 
39.24 	the clerk or recorder of the central related governing body shall immediately transmit the 
39.25 	notification to the presiding officer of the body. The officer shall thereupon call a joint 
39.26 	meeting of the members of all the related governing bodies to elect board members, to 
39.27 	be held at such time as the officer shall fix at the regular meeting place of the officer's 
39.28 	governing body or at such other place in the district as the officer shall determine. The 
39.29 	clerk or recorder of the body must give at least ten days' notice of the meeting by mail to 
39.30 	the clerks or recorders of all the other related governing bodies, who shall immediately 
39.31 	transmit the notice to all the members of the related governing bodies, respectively. 
39.32 	Subsequent joint meetings to elect board members for regular terms must be called and 
39.33 	held in like manner. The presiding officer and the clerk or recorder of the central related 
39.34 	governing body shall act respectively as chair and secretary of the joint electing body at 
39.35 	any meeting thereof, but in case of the absence or disability of either of them, the body 
40.1 	may elect a temporary substitute. A majority of the members of each related governing 
40.2 	body is required for a quorum at any meeting of the joint electing body.
40.3 		Subd. 5.Nominations. Nominations for board members may be made by petitions, 
40.4 	each signed by ten or more voters residing and owning land in the district, filed with the 
40.5 	clerk, recorder, or secretary of the electing body before the election meeting. No person 
40.6 	shall sign more than one petition. The electing body shall give due consideration to all 
40.7 	nominations but is not limited thereto.
40.8 		Subd. 6.Election; single governing body. In the case of an electing body 
40.9 	consisting of a single related governing body, a majority vote of all members is required 
40.10 	for an election. In the case of a joint electing body, a majority vote of members present is 
40.11 	required for an election. In case of lack of a quorum or failure to elect, a meeting of an 
40.12 	electing body may be adjourned to a stated time and place without further notice.
40.13 		Subd. 7.Election; multiple governing bodies. In any district having more than 
40.14 	one territorial unit, the related governing bodies, instead of meeting in joint session, may 
40.15 	elect a board member by resolutions adopted by all of them separately, concurring in the 
40.16 	election of the same person. A majority vote of all members of each related governing 
40.17 	body is required for the adoption of any such resolution. The clerks or recorders of the 
40.18 	other related governing bodies shall transmit certified copies of the resolutions to the clerk 
40.19 	or recorder of the central related governing body. Upon receipt of concurring resolutions 
40.20 	from all the related governing bodies, the presiding officer and clerk or recorder of the 
40.21 	central related governing body shall certify the results and furnish certificates of election 
40.22 	as provided for a joint meeting.
40.23 		Subd. 8.Vacancies. Any vacancy in the membership of a board must be filled for 
40.24 	the unexpired term in like manner as provided for the regular election of board members.
40.25 		Subd. 9.Certification of election; temporary chair. The presiding and recording 
40.26 	officers of the electing body shall certify the results of each election to the county auditor 
40.27 	of each county wherein any part of the district is situated and to the clerk or recorder of 
40.28 	each related governing body and shall make and transmit to each board member elected 
40.29 	a certificate of the board member's election. Upon electing the first board members of a 
40.30 	district, the presiding officer of the electing body shall designate a member to serve as 
40.31 	temporary chair for purposes of initial organization of the board, and the recording 
40.32 	officer of the body shall include written notice thereof to all the board members with 
40.33 	their certificates of election.

40.34 	Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
41.1 		Subdivision 1.Initial, annual meetings. As soon as practicable after the election 
41.2 	of the first board members of a district, the board shall meet at the call of the temporary 
41.3 	chair to elect officers and take other appropriate action for organization and administration 
41.4 	of the district. Each board shall hold a regular annual meeting at the call of the chair or 
41.5 	otherwise as the board prescribes on or as soon as practicable after the first business day in 
41.6 	January of each year and such other regular and special meetings as the board prescribes.
41.7 		Subd. 2.Officers. The officers of each district shall be a chair and a vice-chair, 
41.8 	who shall be members of the board, and a secretary and a treasurer, who may but need 
41.9 	not be members of the board. The board of a new district at its initial meeting or as soon 
41.10 	thereafter as practicable shall elect the officers to serve until the first business day in 
41.11 	January next following. Thereafter, the board shall elect the officers at each regular annual 
41.12 	meeting for terms expiring on the first business day in January next following. Each 
41.13 	officer serves until a successor is elected and has qualified.
41.14 		Subd. 3.Meeting place; offices. The board at its initial meeting or as soon 
41.15 	thereafter as practicable shall provide for suitable places for board meetings and for offices 
41.16 	of the district officers and may change the same thereafter as the board deems advisable. 
41.17 	The meeting place and offices may be the same as those of any related governing body, 
41.18 	with the approval of the body. The secretary of the board shall notify the secretary of state, 
41.19 	the county auditor of each county wherein any part of the district is situated, and the clerk 
41.20 	or recorder of each related governing body of the locations and post office addresses of the 
41.21 	meeting place and offices and any changes therein.
41.22 		Subd. 4.Budget. At any time before the proceeds of the first tax levy in a district 
41.23 	become available, the district board may prepare a budget comprising an estimate of the 
41.24 	expenses of organizing and administering the district until the proceeds are available, with 
41.25 	a proposal for apportionment of the estimated amount among the related governmental 
41.26 	subdivisions, and may request the governing bodies thereof to advance funds according to 
41.27 	the proposal. The governing bodies may authorize advancement of the requested amounts, 
41.28 	or such part thereof as they respectively deem proper, from any funds available in their 
41.29 	respective treasuries. The board shall include in its first tax levy after receipt of any such 
41.30 	advancements a sufficient sum to cover the same and shall cause the same to be repaid, 
41.31 	without interest, from the proceeds of taxes as soon as received.

41.32 	Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
41.33 		Subdivision 1.Status. Every district shall be a public corporation and a governmental 
41.34 	subdivision of the state and shall be deemed to be a municipality or municipal corporation 
41.35 	for the purpose of obtaining federal or state grants or loans or otherwise complying with 
42.1 	any provision of federal or state law or for any other purpose relating to the powers and 
42.2 	purposes of the district for which such status is now or hereafter required by law.
42.3 		Subd. 2.Powers and purpose. Every district shall have the powers and purposes 
42.4 	prescribed by this chapter and such others as may now or hereafter be prescribed by law. 
42.5 	No express grant of power or enumeration of powers herein shall be deemed to limit the 
42.6 	generality or scope of any grant of power.
42.7 		Subd. 3.Scope of powers and duties. Except as otherwise provided, a power or 
42.8 	duty vested in or imposed upon a district or any of its officers, agents, or employees shall 
42.9 	not be deemed exclusive and shall not supersede or abridge any power or duty vested in or 
42.10 	imposed upon any other agency of the state or any governmental subdivision thereof, but 
42.11 	shall be supplementary thereto.
42.12 		Subd. 4.Exercise of power. All the powers of a district shall be exercised by its 
42.13 	board of managers except so far as approval of any action by popular vote or by any other 
42.14 	authority may be expressly required by law.
42.15 		Subd. 5.Lawsuits; contracts. A district may sue and be sued and may enter into 
42.16 	any contract necessary or proper for the exercise of its powers or the accomplishment 
42.17 	of its purposes.
42.18 		Subd. 6.Property acquisition. A district may acquire by purchase, gift, or 
42.19 	condemnation or may lease or rent any real or personal property within or without the 
42.20 	district that may be necessary for the exercise of district powers or the accomplishment of 
42.21 	district purposes, may hold the property for such purposes, and may lease, rent out, sell, or 
42.22 	otherwise dispose of any property not needed for such purposes.
42.23 		Subd. 7.Acceptance of money or property. A district may accept gifts, grants, 
42.24 	or loans of money or other property from the United States, the state, or any person, 
42.25 	corporation, or other entity for district purposes; may enter into any agreement required in 
42.26 	connection therewith; and may hold, use, and dispose of the money or property according 
42.27 	to the terms of the gift, grant, loan, or agreement relating thereto.

42.28 	Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
42.29 		Subdivision 1.Pollution prevention. A district may construct, install, improve, 
42.30 	maintain, and operate any system, works, or facilities within or without the district 
42.31 	required to control and prevent pollution of any waters of the state within its territory.
42.32 		Subd. 2.Sewage disposal. A district may construct, install, improve, maintain, 
42.33 	and operate any system, works, or facilities within or without the district required to 
42.34 	provide for, regulate, and control the disposal of sewage, industrial waste, and other waste 
42.35 	originating within its territory. The district may require any person upon whose premises 
43.1 	there is any source of sewage, industrial waste, or other waste within the district to 
43.2 	connect the premises with the disposal system, works, or facilities of the district whenever 
43.3 	reasonable opportunity therefor is provided.
43.4 		Subd. 3.Garbage, refuse disposal. A district may construct, install, improve, 
43.5 	maintain, and operate any system, works, or facilities within or without the district required 
43.6 	to provide for, regulate, and control the disposal of garbage or refuse originating within the 
43.7 	district. The district may require any person upon whose premises any garbage or refuse is 
43.8 	produced or accumulated to dispose of the garbage or refuse through the system, works, or 
43.9 	facilities of the district whenever reasonable opportunity therefor is provided.
43.10 		Subd. 4.Water supply. A district may procure supplies of water necessary for any 
43.11 	purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and 
43.12 	operate any system, works, or facilities required therefor within or without the district.
43.13 		Subd. 5.Roads. (a) To maintain the integrity of and facilitate access to district 
43.14 	systems, works, or facilities, the district may maintain and repair a road by agreement with 
43.15 	the entity that was responsible for the performance of maintenance and repair immediately 
43.16 	prior to the agreement. Maintenance and repair includes but is not limited to providing 
43.17 	lighting, snow removal, and grass mowing.
43.18 	(b) A district shall establish a taxing subdistrict of benefited property and shall levy 
43.19 	special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the 
43.20 	cost of improvement or maintenance of a road under paragraph (a).
43.21 	(c) For purposes of this subdivision, a district shall not be construed as a road 
43.22 	authority under chapter 160.
43.23 	(d) The district and its officers and employees are exempt from liability for any tort 
43.24 	claim for injury to person or property arising from travel on a road maintained by the 
43.25 	district and related to the road's maintenance or condition.

43.26 	Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
43.27 		Subdivision 1.Public property. For the purpose of constructing, improving, 
43.28 	maintaining, or operating any system, works, or facilities designed or used for any purpose 
43.29 	under section 442A.17, a district, its officers, agents, employees, and contractors may enter, 
43.30 	occupy, excavate, and otherwise operate in, upon, under, through, or along any public 
43.31 	highway, including a state trunk highway, or any street, park, or other public grounds so 
43.32 	far as necessary for such work, with the approval of the governing body or other authority 
43.33 	in charge of the public property affected and on such terms as may be agreed upon with the 
43.34 	governing body or authority respecting interference with public use, restoration of previous 
43.35 	conditions, compensation for damages, and other pertinent matters. If an agreement cannot 
44.1 	be reached after reasonable opportunity therefor, the district may acquire the necessary 
44.2 	rights, easements, or other interests in the public property by condemnation, subject to all 
44.3 	applicable provisions of law as in case of taking private property, upon condition that the 
44.4 	court shall determine that there is paramount public necessity for the acquisition.
44.5 		Subd. 2.Use of other systems. A district may, upon such terms as may be 
44.6 	agreed upon with the respective governing bodies or authorities concerned, provide for 
44.7 	connecting with or using; lease; or acquire and take over any system, works, or facilities 
44.8 	for any purpose under section 442A.17 belonging to any other governmental subdivision 
44.9 	or other public agency.
44.10 		Subd. 3.Use by other governmental bodies. A district may, upon such terms 
44.11 	as may be agreed upon with the respective governing bodies or authorities concerned, 
44.12 	authorize the use by any other governmental subdivision or other public agency of any 
44.13 	system, works, or facilities of the district constructed for any purpose under section 
44.14 	442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A 
44.15 	district may extend any such system, works, or facilities and permit the use thereof by 
44.16 	persons outside the district, so far as the capacity thereof is sufficient beyond the needs of 
44.17 	the district, upon such terms as the board may prescribe.
44.18 		Subd. 4.Joint projects. A district may be a party to a joint cooperative project, 
44.19 	undertaking, or enterprise with one or more other governmental subdivisions or other 
44.20 	public agencies for any purpose under section 442A.17 upon such terms as may be 
44.21 	agreed upon between the governing bodies or authorities concerned. Without limiting the 
44.22 	effect of the foregoing provision or any other provision of this chapter, a district, with 
44.23 	respect to any of said purposes, may act under and be subject to section 471.59, or any 
44.24 	other appropriate law providing for joint or cooperative action between governmental 
44.25 	subdivisions or other public agencies.

44.26 	Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
44.27 	A district may regulate and control the construction, maintenance, and use of privies, 
44.28 	cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal 
44.29 	of human or animal excreta or other domestic wastes within its territory so far as necessary 
44.30 	to prevent nuisances or pollution or to protect the public health, safety, and welfare 
44.31 	and may prohibit the use of any such facilities or devices not connected with a district 
44.32 	disposal system, works, or facilities whenever reasonable opportunity for such connection 
44.33 	is provided; provided, that the authority of a district under this section does not extend 
44.34 	or apply to the construction, maintenance, operation, or use by any person other than the 
45.1 	district of any disposal system or part thereof within the district under and in accordance 
45.2 	with a valid and existing permit issued by the Minnesota Pollution Control Agency.

45.3 	Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
45.4 	A district may develop general programs and particular projects within the scope of 
45.5 	its powers and purposes and may make all surveys, studies, and investigations necessary 
45.6 	for the programs and projects.

45.7 	Sec. 23. [442A.21] GENERAL AND STATUTORY CITY POWERS.
45.8 	A district may do and perform all other acts and things necessary or proper for the 
45.9 	effectuation of its powers and the accomplishment of its purposes. Without limiting the 
45.10 	effect of the foregoing provision or any other provision of this chapter, a district, with 
45.11 	respect to each and all of said powers and purposes, shall have like powers as are vested in 
45.12 	statutory cities with respect to any similar purposes. The exercise of such powers by a 
45.13 	district and all matters pertaining thereto are governed by the law relating to the exercise 
45.14 	of similar powers by statutory cities and matters pertaining thereto, so far as applicable, 
45.15 	with like force and effect, except as otherwise provided.

45.16 	Sec. 24. [442A.22] ADVISORY COMMITTEE.
45.17 	A district board of managers may appoint an advisory committee with membership 
45.18 	and duties as the board prescribes.

45.19 	Sec. 25. [442A.23] BOARD POWERS.
45.20 		Subdivision 1.Generally. The board of managers of every district shall have charge 
45.21 	and control of all the funds, property, and affairs of the district. With respect thereto, the 
45.22 	board has the same powers and duties as are provided by law for a statutory city council 
45.23 	with respect to similar statutory city matters, except as otherwise provided. Except as 
45.24 	otherwise provided, the chair, vice-chair, secretary, and treasurer of the district have the 
45.25 	same powers and duties, respectively, as the mayor, acting mayor, clerk, and treasurer 
45.26 	of a statutory city. Except as otherwise provided, the exercise of the powers and the 
45.27 	performance of the duties of the board and officers of the district and all other activities, 
45.28 	transactions, and procedures of the district or any of its officers, agents, or employees, 
45.29 	respectively, are governed by the law relating to similar matters in a statutory city, so far 
45.30 	as applicable, with like force and effect.
45.31 		Subd. 2.Regulation of district. The board may enact ordinances, prescribe 
45.32 	regulations, adopt resolutions, and take other appropriate action relating to any matter 
46.1 	within the powers and purposes of the district and may do and perform all other acts and 
46.2 	things necessary or proper for the effectuation of said powers and the accomplishment 
46.3 	of said purposes. The board may provide that violation of a district ordinance is a penal 
46.4 	offense and may prescribe penalties for violations, not exceeding those prescribed by law 
46.5 	for violation of statutory city ordinances.
46.6 		Subd. 3.Arrest; prosecution. (a) Violations of district ordinances may be 
46.7 	prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may 
46.8 	make arrests for violations committed anywhere within the district in the same manner as 
46.9 	for violations of city ordinances or for statutory misdemeanors.
46.10 	(b) All fines collected shall be deposited in the treasury of the district.

46.11 	Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
46.12 		Subdivision 1.Tax levies. The board may levy taxes for any district purpose on all 
46.13 	property taxable within the district.
46.14 		Subd. 2.Particular area. In the case where a particular area within the district, 
46.15 	but not the entire district, is benefited by a system, works, or facilities of the district, 
46.16 	the board, after holding a public hearing as provided by law for levying assessments on 
46.17 	benefited property, shall by ordinance establish such area as a taxing subdistrict, to be 
46.18 	designated by number, and shall levy special taxes on all the taxable property therein, to be 
46.19 	accounted for separately and used only for the purpose of paying the cost of construction, 
46.20 	improvement, acquisition, maintenance, or operation of such system, works, or facilities, 
46.21 	or paying the principal and interest on bonds issued to provide funds therefor and expenses 
46.22 	incident thereto. The hearing may be held jointly with a hearing for the purpose of levying 
46.23 	assessments on benefited property within the proposed taxing subdistrict.
46.24 		Subd. 3.Benefited property. The board shall levy assessments on benefited property 
46.25 	to provide funds for payment of the cost of construction, improvement, or acquisition of 
46.26 	any system, works, or facilities designed or used for any district purpose or for payment of 
46.27 	the principal of and interest on any bonds issued therefor and expenses incident thereto.
46.28 		Subd. 4.Service charges. The board shall prescribe service, use, or rental charges 
46.29 	for persons or premises connecting with or making use of any system, works, or facilities 
46.30 	of the district; prescribe the method of payment and collection of the charges; and provide 
46.31 	for the collection thereof for the district by any related governmental subdivision or 
46.32 	other public agency on such terms as may be agreed upon with the governing body or 
46.33 	other authority thereof.

46.34 	Sec. 27. [442A.25] BORROWING POWERS; BONDS.
47.1 		Subdivision 1.Borrowing power. The board may authorize the borrowing of 
47.2 	money for any district purpose and provide for the repayment thereof, subject to chapter 
47.3 	475. The taxes initially levied by any district according to section 475.61 for the payment 
47.4 	of district bonds, upon property within each municipality included in the district, shall be 
47.5 	included in computing the levy of the municipality.
47.6 		Subd. 2.Bond issuance. The board may authorize the issuance of bonds or 
47.7 	obligations of the district to provide funds for the construction, improvement, or 
47.8 	acquisition of any system, works, or facilities for any district purpose or for refunding 
47.9 	any prior bonds or obligations issued for any such purpose and may pledge the full faith 
47.10 	and credit of the district; the proceeds of tax levies or assessments; service, use, or 
47.11 	rental charges; or any combination thereof to the payment of such bonds or obligations 
47.12 	and interest thereon or expenses incident thereto. An election or vote of the people of 
47.13 	the district is required to authorize the issuance of any bonds or obligations. Except as 
47.14 	otherwise provided in this chapter, the forms and procedures for issuing and selling bonds 
47.15 	and provisions for payment thereof must comply with chapter 475.

47.16 	Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
47.17 	The proceeds of all tax levies, assessments, service, use, or rental charges, and 
47.18 	other income of the district must be deposited in the district treasury and must be held 
47.19 	and disposed of as the board may direct for district purposes, subject to any pledges or 
47.20 	dedications made by the board for the use of particular funds for the payment of bonds, 
47.21 	interest thereon, or expenses incident thereto or for other specific purposes.

47.22 	Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
47.23 	In any case where an ordinance is enacted or a regulation adopted by a district 
47.24 	board relating to the same subject matter and applicable in the same area as an existing 
47.25 	ordinance or regulation of a related governmental subdivision for the district, the district 
47.26 	ordinance or regulation, to the extent of its application, supersedes the ordinance or 
47.27 	regulation of the related governmental subdivision. In any case where an area within a 
47.28 	district is served for any district purpose by a system, works, or facilities of the district, 
47.29 	no system, works, or facilities shall be constructed, maintained, or operated for the same 
47.30 	purpose in the same area by any related governmental subdivision or other public agency 
47.31 	except as approved by the district board.

47.32 	Sec. 30. [442A.28] APPLICATION.
48.1 	This chapter does not abridge or supersede any authority of the Minnesota Pollution 
48.2 	Control Agency or the commissioner of health, but is subject and supplementary thereto. 
48.3 	Districts and members of district boards are subject to the authority of the Minnesota 
48.4 	Pollution Control Agency and have no power or authority to abate or control pollution that 
48.5 	is permitted by and in accord with any classification of waters, standards of water quality, 
48.6 	or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

48.7 	Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
48.8 		Subdivision 1.Alternative dispute resolution. (a) Notwithstanding sections 
48.9 	442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing, 
48.10 	the chief administrative law judge, upon consultation with affected parties and considering 
48.11 	the procedures and principles established in sections 442A.01 to 442A.28, may require 
48.12 	that disputes over proposed sanitary district creations, attachments, detachments, or 
48.13 	dissolutions be addressed in whole or in part by means of alternative dispute resolution 
48.14 	processes in place of, or in connection with, hearings that would otherwise be required 
48.15 	under sections 442A.01 to 442A.28, including those provided in chapter 14.
48.16 	(b) In all proceedings, the chief administrative law judge has the authority and 
48.17 	responsibility to conduct hearings and issue final orders related to the hearings under 
48.18 	sections 442A.01 to 442A.28.
48.19 		Subd. 2.Cost of proceedings. (a) The parties to any matter directed to alternative 
48.20 	dispute resolution under subdivision 1 must pay the costs of the alternative dispute 
48.21 	resolution process or hearing in the proportions that the parties agree to.
48.22 	(b) Notwithstanding section 14.53 or other law, the Office of Administrative 
48.23 	Hearings is not liable for the costs.
48.24 	(c) If the parties do not agree to a division of the costs before the commencement of 
48.25 	mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by 
48.26 	the mediator, arbitrator, or chief administrative law judge.
48.27 	(d) The chief administrative law judge may contract with the parties to a matter for 
48.28 	the purpose of providing administrative law judges and reporters for an administrative 
48.29 	proceeding or alternative dispute resolution.
48.30 	(e) The chief administrative law judge shall assess the cost of services rendered by 
48.31 	the Office of Administrative Hearings as provided by section 14.53.
48.32 		Subd. 3.Parties. In this section, "party" means:
48.33 	(1) a property owner, group of property owners, sanitary district, municipality, or 
48.34 	township that files an initiating document or timely objection under this chapter;
49.1 	(2) the sanitary district, municipality, or township within which the subject area 
49.2 	is located;
49.3 	(3) a municipality abutting the subject area; and
49.4 	(4) any other person, group of persons, or governmental agency residing in, owning 
49.5 	property in, or exercising jurisdiction over the subject area that submits a timely request 
49.6 	and is determined by the presiding administrative law judge to have a direct legal interest 
49.7 	that will be affected by the outcome of the proceeding.
49.8 		Subd. 4.Effectuation of agreements. Matters resolved or agreed to by the parties 
49.9 	as a result of an alternative dispute resolution process, or otherwise, may be incorporated 
49.10 	into one or more stipulations for purposes of further proceedings according to the 
49.11 	applicable procedures and statutory criteria of this chapter.
49.12 		Subd. 5.Limitations on authority. Nothing in this section shall be construed to 
49.13 	permit a sanitary district, municipality, town, or other political subdivision to take, or 
49.14 	agree to take, an action that is not otherwise authorized by this chapter.

49.15 	Sec. 32.  REPEALER.
 49.16 	Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10; 
49.17 	115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 
49.18 	115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

49.19 	Sec. 33. EFFECTIVE DATE.
 49.20 	Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.