HF 625

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to sanitary sewer districts; establishing and 
  1.3             providing for the Central Lakes Region Sanitary 
  1.4             District.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [DEFINITIONS.] 
  1.7      Subdivision 1.  [APPLICATION.] The terms defined in this 
  1.8   section shall have the meaning given them unless otherwise 
  1.9   provided or indicated by the context.  
  1.10     Subd. 2.  [ACQUISITION AND BETTERMENT.] "Acquisition" and 
  1.11  "betterment" shall have the meanings given them in Minnesota 
  1.12  Statutes, section 475.51.  
  1.13     Subd. 3.  [AGENCY.] "Agency" means the Minnesota pollution 
  1.14  control agency created and established by Minnesota Statutes, 
  1.15  chapter 116.  
  1.16     Subd. 4.  [AGRICULTURAL PROPERTY.] "Agricultural property" 
  1.17  means land as is classified agricultural land within the meaning 
  1.18  of Minnesota Statutes, section 273.13, subdivision 23.  
  1.19     Subd. 5.  [CURRENT COSTS OF ACQUISITION, BETTERMENT, AND 
  1.20  DEBT SERVICE.] "Current costs of acquisition, betterment, and 
  1.21  debt service" means interest and principal estimated to be due 
  1.22  during the budget year on bonds issued to finance the 
  1.23  acquisition and betterment and all other costs of acquisition 
  1.24  and betterment estimated to be paid during the budget year from 
  1.25  funds other than bond proceeds and federal or state grants. 
  2.1      Subd. 6.  [DISTRICT DISPOSAL SYSTEM.] "District disposal 
  2.2   system" means any and all of the interceptors or treatment works 
  2.3   owned, constructed, or operated by the board unless designated 
  2.4   by the board as local sanitary sewer facilities.  
  2.5      Subd. 7.  [CENTRAL LAKES REGION SANITARY DISTRICT AND 
  2.6   DISTRICT.] "Central Lakes Region Sanitary District" and 
  2.7   "district" mean the area over which the sanitary sewer board has 
  2.8   jurisdiction, including those parts of the Douglas county 
  2.9   townships of Carlos, Brandon, La Grand, Leaf Valley, Miltona, 
  2.10  and Moe, as more particularly described by metes and bounds in 
  2.11  the comprehensive plan adopted under section 4.  
  2.12     Subd. 8.  [INTERCEPTOR.] "Interceptor" means any sewer and 
  2.13  necessary appurtenances to it, including but not limited to, 
  2.14  mains, pumping stations, and sewage flow regulating and 
  2.15  measuring stations, that is designed for or used to conduct 
  2.16  sewage originating in more than one local government unit, or 
  2.17  that is designed or used to conduct all or substantially all the 
  2.18  sewage originating in a single local government unit from a 
  2.19  point of collection in that unit to an interceptor or treatment 
  2.20  works outside that unit, or that is determined by the board to 
  2.21  be a major collector of sewage used or designed to serve a 
  2.22  substantial area in the district.  
  2.23     Subd. 9.  [LOCAL GOVERNMENT UNIT OR GOVERNMENT 
  2.24  UNIT.] "Local government unit" or "government unit" means any 
  2.25  municipal or public corporation or governmental or political 
  2.26  subdivision or agency located in whole or in part in the 
  2.27  district, authorized by law to provide for the collection and 
  2.28  disposal of sewage. 
  2.29     Subd. 10.  [LOCAL SANITARY SEWER FACILITIES.] "Local 
  2.30  sanitary sewer facilities" means all or any part of any disposal 
  2.31  system in the district other than the district disposal system.  
  2.32     Subd. 11.  [MUNICIPALITY.] "Municipality" means any 
  2.33  statutory or home rule charter city or town located in whole or 
  2.34  in part in the district.  
  2.35     Subd. 12.  [PERSON.] "Person" means any individual, 
  2.36  partnership, corporation, limited liability company, 
  3.1   cooperative, or other organization or entity, public or private. 
  3.2      Subd. 13.  [POLLUTION AND SEWER SYSTEM.] "Pollution" and 
  3.3   "sewer system" have the meanings given them in Minnesota 
  3.4   Statutes, section 115.01.  
  3.5      Subd. 14.  [SANITARY SEWER BOARD OR BOARD.] "Sanitary sewer 
  3.6   board" or "board" means the sanitary sewer board established for 
  3.7   the Central Lakes Region Sanitary District as provided in 
  3.8   section 2.  
  3.9      Subd. 15.  [SEWAGE.] "Sewage" means all liquid or 
  3.10  water-carried waste products from whatever sources derived, 
  3.11  together with the groundwater infiltration and surface water 
  3.12  that may be present.  
  3.13     Subd. 16.  [TOTAL COSTS OF ACQUISITION AND BETTERMENT AND 
  3.14  COSTS OF ACQUISITION AND BETTERMENT.] "Total costs of 
  3.15  acquisition and betterment" and "costs of acquisition and 
  3.16  betterment" mean all acquisition and betterment expenses that 
  3.17  are permitted to be financed out of bond proceeds issued in 
  3.18  accordance with section 12, subdivision 4, whether or not the 
  3.19  expenses are in fact financed out of the bond proceeds.  
  3.20     Subd. 17.  [TREATMENT WORKS AND DISPOSAL 
  3.21  SYSTEM.] "Treatment works" and "disposal system" have the 
  3.22  meanings given them in Minnesota Statutes, section 115.01. 
  3.23     Sec. 2.  [SANITARY SEWER BOARD.] 
  3.24     Subdivision 1.  [ESTABLISHMENT.] A sanitary sewer board 
  3.25  with jurisdiction in the Central Lakes Region Sanitary District 
  3.26  is established as a public corporation and political subdivision 
  3.27  of the state with perpetual succession and all the rights, 
  3.28  powers, privileges, immunities, and duties that may be validly 
  3.29  granted to or imposed upon a municipal corporation, as provided 
  3.30  in this act.  
  3.31     Subd. 2.  [MEMBERS AND SELECTION.] The number of board 
  3.32  members and method by which they are selected is as follows:  
  3.33  The governing body of any municipality located in whole or part 
  3.34  within the district must each separately select one member.  
  3.35  Upon the board's ordering of a project to construct a sanitary 
  3.36  sewer, the governing body of any municipality must appoint one 
  4.1   additional member for each full 800 special assessments included 
  4.2   in the ordered project to be levied against property located in 
  4.3   the municipality.  The term of each member is subject to the 
  4.4   approval of the voting members of the city council or town board.
  4.5      Subd. 3.  [TIME LIMIT; ALTERNATIVE APPOINTMENT.] The 
  4.6   initial board members must be selected as provided in 
  4.7   subdivision 2 within 60 days after this act is effective.  A 
  4.8   successor must be selected at any time within 60 days before the 
  4.9   expiration of the predecessor's term in the same manner as the 
  4.10  predecessor was selected.  Any vacancy on the board must be 
  4.11  filled within 60 days after it occurs.  If a selection is not 
  4.12  made as provided within the time prescribed, the chief judge of 
  4.13  the seventh judicial district of the Minnesota district court, 
  4.14  on application by any interested person, shall appoint an 
  4.15  eligible person to the board. 
  4.16     Subd. 4.  [VACANCIES.] If the office of any board member 
  4.17  becomes vacant, the vacancy shall be filled for the unexpired 
  4.18  term in the manner as provided for selection of the member who 
  4.19  vacated the office.  The office shall be deemed vacant under the 
  4.20  conditions specified in Minnesota Statutes, section 351.02.  
  4.21     Subd. 5.  [TERMS OF OFFICE.] The terms of all board members 
  4.22  shall be for one, two, three, or four calendar years to be 
  4.23  determined in accordance with subdivision 2 by the governing 
  4.24  body selecting such member.  Terms shall expire on January 1 of 
  4.25  a calendar year, except that each member shall serve until a 
  4.26  successor has been duly selected and qualified.  
  4.27     Subd. 6.  [REMOVAL.] A board member may be removed by the 
  4.28  unanimous vote of the appointing governing body with or without 
  4.29  cause.  
  4.30     Subd. 7.  [QUALIFICATIONS.] Each board member may, but need 
  4.31  not be a resident of the district and may, but need not be an 
  4.32  elected public official.  
  4.33     Subd. 8.  [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 
  4.34  certificate of selection to a seat of every board member, 
  4.35  stating the seat's term, must be made by the respective 
  4.36  municipal clerk.  The certificate, with the approval attached by 
  5.1   other authority, if required, must be filled with the secretary 
  5.2   of state.  A copy must be furnished to the board member and the 
  5.3   secretary of the board.  Each member must qualify by taking and 
  5.4   subscribing to the oath of office prescribed by the Minnesota 
  5.5   Constitution, article V, section 6.  The oath, duly certified by 
  5.6   the official administering the same, must be filed with the 
  5.7   secretary of state and the secretary of the board. 
  5.8      Subd. 9.  [COMPENSATION OF BOARD MEMBERS.] Each board 
  5.9   member may be paid a per diem compensation to attend meetings 
  5.10  and for other services in an amount as may be specifically 
  5.11  authorized by the board from time to time.  Per diem 
  5.12  compensation must not exceed $4,000 for any member in any one 
  5.13  year.  All members of the board may be reimbursed for all 
  5.14  reasonable expenses incurred in the performance of their duties 
  5.15  as determined by the board.  
  5.16     Sec. 3.  [GENERAL PROVISION FOR ORGANIZATION AND OPERATION 
  5.17  OF BOARD.] 
  5.18     Subdivision 1.  [OFFICERS MEETINGS; SEAL.] A majority of 
  5.19  the members is a quorum at all meetings of the board, but a 
  5.20  lesser number may meet and adjourn from time to time and compel 
  5.21  the attendance of absent members.  The board must meet regularly 
  5.22  at the time and place as the board by resolution designates.  
  5.23  Special meetings may be held at any time upon call of the chair 
  5.24  or any two members, upon written notice sent by mail to each 
  5.25  member at least three days before the meeting, or upon the 
  5.26  notice as the board by resolution may provide, or without notice 
  5.27  if each member is present or files with the secretary a written 
  5.28  consent to the meeting either before or after the meeting.  
  5.29  Except as otherwise provided in this act, any action within the 
  5.30  authority of the board may be taken by the affirmative vote of a 
  5.31  majority of the board at a regular or adjourned regular meeting 
  5.32  or at a duly held special meeting, but in any case only if a 
  5.33  quorum is present.  All meetings of the board must be open to 
  5.34  the public as provided in Minnesota Statutes, chapter 13D.  
  5.35     Subd. 2.  [CHAIR.] The board must elect a chair from its 
  5.36  membership.  The term of the chair expires on January 1 of each 
  6.1   year.  The chair presides at all meetings of the board, if 
  6.2   present, and must perform all other duties and functions usually 
  6.3   incumbent upon the officer, and all administrative functions 
  6.4   assigned to the chair by the board.  The board must elect a 
  6.5   vice-chair from its membership to act for the chair during a 
  6.6   temporary absence or disability.  
  6.7      Subd. 3.  [SECRETARY AND TREASURER.] The board must select 
  6.8   one or more persons who may, but need not be a member of the 
  6.9   board, to act as its secretary and treasurer.  The secretary and 
  6.10  treasurer hold office at the pleasure of the board, subject to 
  6.11  the terms of any contract of employment that the board may enter 
  6.12  into with the secretary or treasurer.  The secretary must record 
  6.13  the minutes of all meetings of the board, and is custodian of 
  6.14  all books and records of the board except those the board 
  6.15  entrusts to the custody of a designated employee.  The board may 
  6.16  appoint a deputy to perform any and all functions of either the 
  6.17  secretary or the treasurer.  A secretary or treasurer or a 
  6.18  deputy of either who is not a member of the board shall not have 
  6.19  any right to vote.  
  6.20     Subd. 4.  [GENERAL MANAGER.] The board may appoint a 
  6.21  general manager who shall be selected solely upon the basis of 
  6.22  training, experience, and other qualifications.  The general 
  6.23  manager serves at the pleasure of the board and at a 
  6.24  compensation to be determined by the board.  The general manager 
  6.25  need not be a resident of the district and may also be selected 
  6.26  by the board to serve as either secretary or treasurer, or both, 
  6.27  of the board.  The general manager must attend all meetings of 
  6.28  the board but must not vote.  The general manager must:  
  6.29     (1) see that all resolutions, rules, regulations, or orders 
  6.30  of the board are enforced; 
  6.31     (2) appoint and remove, upon the basis of merit and 
  6.32  fitness, all subordinate officers and regular employees of the 
  6.33  board except the secretary and the treasurer and their deputies; 
  6.34     (3) present to the board plans, studies, and other reports 
  6.35  prepared for board purposes and recommend to the board for 
  6.36  adoption such measures as the general manager considers 
  7.1   necessary to enforce or carry out the powers and duties of the 
  7.2   board, or for the efficient administration of the affairs of the 
  7.3   board; 
  7.4      (4) keep the board fully advised as to its financial 
  7.5   condition, and prepare and submit to the board, and to the 
  7.6   governing bodies of the local government units, the board's 
  7.7   annual budget and other financial information the board 
  7.8   requests; 
  7.9      (5) recommend to the board for adoption rules recommended 
  7.10  as necessary for the efficient operation of a district disposal 
  7.11  system and all local sanitary sewer facilities over which the 
  7.12  board may assume responsibility as provided in section 17; and 
  7.13     (6) perform other duties as may be prescribed by the board. 
  7.14     Subd. 5.  [PUBLIC EMPLOYEES.] The general manager and all 
  7.15  persons employed by the general manager and public employees, 
  7.16  and have all the rights and duties conferred on public employees 
  7.17  under the Minnesota Public Employment Labor Relations Act.  The 
  7.18  compensation and conditions of employment of the employees is 
  7.19  not governed by any rule applicable to state employees in the 
  7.20  classified service or by Minnesota Statutes, chapter 15A, except 
  7.21  as specifically authorized by law. 
  7.22     Subd. 6.  [PROCEDURES.] The board must adopt resolutions or 
  7.23  bylaws establishing procedures for board action, personnel 
  7.24  administration, record keeping, investment policy, approving 
  7.25  claims, authorizing or making disbursements, safekeeping funds, 
  7.26  and audit of all financial operations of the board.  
  7.27     Subd. 7.  [SURETY BONDS AND INSURANCE.] The board may 
  7.28  procure surety bonds for its officers and employees in such 
  7.29  amounts as are considered necessary to assure proper performance 
  7.30  of their duties and proper accounting for funds in their custody.
  7.31  It may buy insurance against risks to property and liability of 
  7.32  the board and its officers, agents, and employees for personal 
  7.33  injuries or death and property damage and destruction in the 
  7.34  amounts as it considers necessary or desirable, with the force 
  7.35  and effect stated in Minnesota Statutes, chapter 466.  
  7.36     Sec. 4.  [COMPREHENSIVE PLAN.] 
  8.1      Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
  8.2   adopt a comprehensive plan for the collection, treatment, and 
  8.3   disposal of sewage in the district for designated periods that 
  8.4   the board considers proper and reasonable.  The board must 
  8.5   prepare and adopt subsequent comprehensive plans for the 
  8.6   collection, treatment, and disposal of sewage in the district 
  8.7   for each succeeding designated period as the board considers 
  8.8   proper and reasonable.  The plan must take into account the 
  8.9   preservation and best and most economic use of water and other 
  8.10  natural resources in the area; the preservation, use, and 
  8.11  potential for use of lands adjoining waters of the state to be 
  8.12  used for the disposal of sewage; and the impact such a disposal 
  8.13  system will have on present and future land use in the affected 
  8.14  area.  The plans shall include the following: 
  8.15     (1) the exact legal description of the boundaries of the 
  8.16  district; 
  8.17     (2) the general location of needed interceptors and 
  8.18  treatment works; 
  8.19     (3) a description of the area that is to be served by the 
  8.20  various interceptors and treatment works; 
  8.21     (4) a long-range capital improvements program; and 
  8.22     (5) such other details as the board deems appropriate. 
  8.23  In developing the plans, the board shall consult with persons 
  8.24  designated by the governing bodies of any municipal or public 
  8.25  corporation or governmental or political subdivision or agency 
  8.26  within or without the district to represent such entities and 
  8.27  shall consider the data, resources, and input offered to the 
  8.28  board by such entities and any planning agency acting on behalf 
  8.29  of one or more such entities.  Each plan, when adopted, must be 
  8.30  followed in the district and may be revised as often as the 
  8.31  board considers necessary.  
  8.32     Subd. 2.  [REPORT TO DOUGLAS COUNTY.] Upon adoption of any 
  8.33  comprehensive plan that establishes or reestablishes the 
  8.34  boundaries of the district, the board must supply the 
  8.35  appropriate Douglas county offices with the boundaries of the 
  8.36  district.  
  9.1      Subd. 3.  [COMPREHENSIVE PLANS; HEARING.] Before adopting 
  9.2   any later comprehensive plan, the board must hold a public 
  9.3   hearing on the proposed plan at the time and place in the 
  9.4   district it determines.  The hearing may be continued from time 
  9.5   to time.  Not less than 45 days before the hearing, the board 
  9.6   must publish notice of it in a newspaper or newspapers having 
  9.7   general circulation in the district stating the date, time, and 
  9.8   place of the hearing, and the place where the proposed plan may 
  9.9   be examined by any interested person.  At the hearing, all 
  9.10  interested persons must be permitted to present their views on 
  9.11  the plan.  
  9.12     Subd. 4.  [MUNICIPAL PLANS AND PROGRAMS; COORDINATION WITH 
  9.13  BOARD'S RESPONSIBILITIES.] Before undertaking the construction 
  9.14  of new sewers or other disposal facilities or the substantial 
  9.15  alteration or improvement of any existing sewers or other 
  9.16  disposal facilities, each local government unit may, and must if 
  9.17  the construction or alteration of any sewage disposal facilities 
  9.18  is contemplated by the government unit, adopt a comprehensive 
  9.19  plan and program for the collection, treatment, and disposal of 
  9.20  sewage for which the local government unit is responsible, 
  9.21  coordinated with the board's comprehensive plan, and may revise 
  9.22  the plan as often as deemed necessary.  Each local plan or 
  9.23  revision must be submitted to the board for review and is 
  9.24  subject to the approval of the board as to those features of the 
  9.25  plan affecting the board's responsibilities as determined by the 
  9.26  board.  Any features disapproved by the board must be modified 
  9.27  in accordance with the board's recommendations.  No construction 
  9.28  project involving those features may be undertaken by the local 
  9.29  government unit unless its governing body first finds the 
  9.30  project to be in accordance with the government unit's 
  9.31  comprehensive plan and program as approved by the board.  Before 
  9.32  approval by the board of the comprehensive plan and program of 
  9.33  any local government unit in the district, no construction 
  9.34  project may be undertaken by the government unit unless approval 
  9.35  of the project is first gotten from the board as to those 
  9.36  features of the project affecting the board's responsibilities 
 10.1   as determined by the board.  
 10.2      Sec. 5.  [SEWER SERVICE FUNCTION.] 
 10.3      Subdivision 1.  [DUTY OF BOARD; ACQUISITION OF EXISTING 
 10.4   FACILITIES; NEW FACILITIES.] At any time after the board has 
 10.5   become organized, it must assume ownership of all existing 
 10.6   interceptors and treatment works that are needed to implement 
 10.7   the board's comprehensive plan for the collection, treatment, 
 10.8   and disposal of sewage in the district, in the manner and 
 10.9   subject to the conditions prescribed in subdivision 2, and must 
 10.10  design, acquire, construct, better, equip, operate, and maintain 
 10.11  all additional interceptors and treatment works that will be 
 10.12  needed for this purpose.  The board must assume ownership of all 
 10.13  treatment works owned by a local government unit if any part of 
 10.14  those treatment works are so needed. 
 10.15     Subd. 2.  [METHOD OF ACQUISITION; EXISTING DEBT.] The board 
 10.16  may require any local government unit to transfer to the board 
 10.17  all of its right, title, and interest in any interceptors or 
 10.18  treatment works and all necessary appurtenances to them owned by 
 10.19  the local government unit that will be needed for the purpose 
 10.20  stated in subdivision 1.  Appropriate instruments of conveyance 
 10.21  for all the property must be executed and delivered to the board 
 10.22  by the proper officers of each local government unit concerned.  
 10.23  The board, upon assuming ownership of any of the interceptors or 
 10.24  treatment works, is obligated to pay to the local government 
 10.25  unit amounts sufficient to pay, when due, all remaining 
 10.26  principal of and interest on bonds issued by the local 
 10.27  government unit for the acquisition or betterment of the 
 10.28  interceptors or treatment works.  The board must also assume the 
 10.29  same obligation with respect to any other existing disposal 
 10.30  system owned by a local government unit that the board 
 10.31  determines to have been replaced or rendered useless by the 
 10.32  district disposal system.  The amounts to be paid under this 
 10.33  subdivision may be offset against any amount to be paid to the 
 10.34  board by the local government unit as provided in section 8.  
 10.35  The board is not obligated to pay the local government unit 
 10.36  anything in addition to the assumption of debt provided for in 
 11.1   this subdivision.  
 11.2      Subd. 3.  [EXISTING JOINT POWERS BOARD.] Effective December 
 11.3   31, 2004, or an earlier date as determined by the board, the 
 11.4   corporate existence of the joint powers board created by 
 11.5   agreement among local government units under Minnesota Statutes, 
 11.6   section 471.59, to provide the financing, acquisition, 
 11.7   construction, improvement, extension, operation, and maintenance 
 11.8   of facilities for the collection, treatment, and disposal of 
 11.9   sewage is terminated.  All persons regularly employed by the 
 11.10  joint powers board on that date become employees of the board, 
 11.11  and may at their option become members of the retirement system 
 11.12  applicable to persons employed directly by the board or may 
 11.13  continue as members of a public retirement association under any 
 11.14  other law, to which they belonged before that date, and retain 
 11.15  all pension rights that they may have the other law and all 
 11.16  other rights to which they are entitled by contract or law.  The 
 11.17  board must make the employer's contributions to pension funds of 
 11.18  its employees.  The employees must perform duties as may be 
 11.19  prescribed by the board.  On December 31, 2004, or the earlier 
 11.20  date, all funds of the joint powers board and all later 
 11.21  collections of taxes, special assessments, or service charges, 
 11.22  or any other sums due the joint powers board, or levied or 
 11.23  imposed by or for the joint powers board, must be transferred to 
 11.24  or made payable to the sanitary sewer board and the county 
 11.25  auditor must remit the sums to the board.  The local government 
 11.26  units otherwise entitled to the cash, taxes, assessments, or 
 11.27  service charges must be credited with the amounts, and the 
 11.28  credits must be offset against any amounts to be paid by them to 
 11.29  the board as provided in section 8.  On December 31, 2004, or 
 11.30  the earlier chosen date, the board shall succeed to and become 
 11.31  vested with all right, title, and interest in and to any 
 11.32  property, real or personal, owned or operated by the joint 
 11.33  powers board.  Before that date, the proper officers of the 
 11.34  joint powers board must execute and deliver to the sanitary 
 11.35  sewer board all deeds, conveyances, bills of sale, and other 
 11.36  documents or instruments required to vest in the board good and 
 12.1   marketable title to all the real or personal property, but this 
 12.2   act operates as the transfer and conveyance to the board of the 
 12.3   real or personal property, if not transferred, as may be 
 12.4   required under the law or under the circumstances.  On December 
 12.5   31, 2004, or the earlier chosen date, the board is obligated to 
 12.6   pay or assume all outstanding bonds or other debt and all 
 12.7   contracts or obligations incurred by the joint powers board, and 
 12.8   all bonds, obligations, or debts of the joint powers board 
 12.9   outstanding on the date this act is effective, are validated.  
 12.10     Subd. 4.  [CONTRACTS BETWEEN LOCAL GOVERNMENT UNITS.] The 
 12.11  board may terminate, upon 60 days' mailed notice to the 
 12.12  contracting parties, any existing contract between or among 
 12.13  local government units requiring payments by a local government 
 12.14  unit to any other local government unit for the use of a 
 12.15  disposal system, or as reimbursement of capital costs of a 
 12.16  disposal system, all or part of which are needed to implement 
 12.17  the board's comprehensive plan.  All contracts between or among 
 12.18  local government units for use of a disposal system entered into 
 12.19  after the date on which this act becomes effective must be 
 12.20  submitted to the board for approval as to those features 
 12.21  affecting the board's responsibilities as determined by the 
 12.22  board and are not effective until the approval is given.  
 12.23     Sec. 6.  [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 
 12.24     Subdivision 1.  [POWERS.] In addition to all other powers 
 12.25  conferred upon the board in this act, the board has the powers 
 12.26  specified in this section. 
 12.27     Subd. 2.  [DISCHARGE OF TREATED SEWAGE.] The board may 
 12.28  discharge the effluent from any treatment works operated by it 
 12.29  into any waters of the state, subject to approval of the agency 
 12.30  if required and in accordance with any effluent or water quality 
 12.31  standards lawfully adopted by the agency, any interstate agency, 
 12.32  or any federal agency having jurisdiction.  
 12.33     Subd. 3.  [USE OF DISTRICT SYSTEM.] The board may require 
 12.34  any person or local government unit to provide for the discharge 
 12.35  of any sewage, directly or indirectly, into the district 
 12.36  disposal system, or to connect any disposal system or a part of 
 13.1   it with the district disposal system wherever reasonable 
 13.2   opportunity is provided; may regulate the manner in which the 
 13.3   connections are made; may require any person or local government 
 13.4   unit discharging sewage into the disposal system to provide 
 13.5   preliminary treatment for it; may prohibit the discharge into 
 13.6   the district disposal system of any substance it determines will 
 13.7   or may be harmful to the system or any persons operating it; may 
 13.8   prohibit any extraneous flow into the system; and may require 
 13.9   any local government unit to discontinue the acquisition, 
 13.10  betterment, or operation of any facility for the unit's disposal 
 13.11  system wherever and so far as adequate service is or will be 
 13.12  provided by the district disposal system.  
 13.13     Sec. 7.  [BUDGET.] 
 13.14     Except as otherwise specifically provided in this act, the 
 13.15  board is subject to Minnesota Statutes, section 275.065, the 
 13.16  Truth in Taxation Act.  The board shall prepare and adopt, on or 
 13.17  before September 15 of each year, a budget showing for the 
 13.18  following calendar year or other fiscal year determined by the 
 13.19  board, sometimes referred to in this act as the budget year, 
 13.20  estimated receipts of money from all sources, including but not 
 13.21  limited to, payments by each local government unit, federal or 
 13.22  state grants, taxes on property, and funds on hand at the 
 13.23  beginning of the year, and estimated expenditures for:  
 13.24     (1) costs of operation, administration, and maintenance of 
 13.25  the district disposal system; 
 13.26     (2) cost acquisition and betterment of the district 
 13.27  disposal system; and 
 13.28     (3) debt service, including principal and interest, on 
 13.29  general obligation bonds and certificates issued under section 
 13.30  12, obligations and debts assumed under section 5, subdivisions 
 13.31  2 and 3, and any money judgments entered by a court of competent 
 13.32  jurisdiction.  Expenditures within these general categories, and 
 13.33  others that the board may from time to time determine, must be 
 13.34  itemized in the detail the board prescribes.  The board and its 
 13.35  officers, agents, and employees must not spend money for any 
 13.36  purpose other than debt service without having set forth the 
 14.1   expense in the budget, nor may they spend in excess of the 
 14.2   amount in the budget, and an excess expenditure or one for an 
 14.3   unauthorized purpose is enforceable except as the obligation of 
 14.4   the person incurring it; but the board may amend the budget at 
 14.5   any time by transferring from one budgetary purpose to another 
 14.6   any sums, except money for debt service and bond proceeds, or by 
 14.7   increasing expenditures in any amount by which cash receipts 
 14.8   during the budget year actually exceed the total amounts 
 14.9   designated in the original budget.  The creation of any 
 14.10  obligation pursuant to section 12 or the receipts of any federal 
 14.11  or state grant is a sufficient budget designation of the 
 14.12  proceeds for the purpose for which it is authorized, and of the 
 14.13  tax or other revenue pledged to pay the obligation and interest 
 14.14  on it, whether or not specifically included in any annual budget.
 14.15     Sec. 8.  [ALLOCATION OF COSTS.] 
 14.16     Subdivision 1.  [DEFINITION OF CURRENT COSTS.] The 
 14.17  estimated cost of administration, operation, maintenance, and 
 14.18  debt service of the district disposal system to be paid by the 
 14.19  board in each fiscal year and the estimated costs of acquisition 
 14.20  and betterment of the system that are to be paid during the year 
 14.21  from funds other than state or federal grants and bond proceeds 
 14.22  and all other previously unallocated payments made by the board 
 14.23  under this act in the fiscal year are referred to as current 
 14.24  costs.  
 14.25     Subd. 2.  [COLLECTION OF CURRENT COSTS.] Current costs 
 14.26  shall be collected as described in paragraphs (a) and (b).  
 14.27     (a) Current costs may be allocated to local government 
 14.28  units in the district on an equitable basis as the board may 
 14.29  from time to time determine by resolution to be fair and 
 14.30  reasonable and in the best interests of the district.  In making 
 14.31  the allocation, the board may provide for the deferment of 
 14.32  payment of all or part of current costs, the reallocation of 
 14.33  deferred costs, and the reimbursement of reallocated deferred 
 14.34  costs on an equitable basis as the board may from time to time 
 14.35  determine by resolution to be fair and reasonable and in the 
 14.36  best interests of the district.  The adoption or revision of a 
 15.1   method of allocation, deferment, reallocation, or reimbursement 
 15.2   used by the board shall be made by the affirmative vote of at 
 15.3   least two-thirds of the members of the board.  
 15.4      (b) Upon approval of at least two-thirds of the members of 
 15.5   the board, the board may provide for direct collection of 
 15.6   current costs by monthly or other periodic billing of sewer 
 15.7   users.  
 15.8      Sec. 9.  [GOVERNMENT UNITS; PAYMENTS TO BOARD.] 
 15.9      Subdivision 1.  [OBLIGATIONS OF GOVERNMENT UNITS TO THE 
 15.10  BOARD.] Each government unit must pay to the board all sums 
 15.11  charged to it as provided in section 8, at the times and in the 
 15.12  manner determined by the board.  The governing body of each 
 15.13  government unit must take all action necessary to provide the 
 15.14  funds required for the payments and to make the payments when 
 15.15  due.  
 15.16     Subd. 2.  [AMOUNTS DUE BOARD; WHEN PAYABLE.] Charges 
 15.17  payable to the board by local government units may be made 
 15.18  payable at the times during each year as the board determines, 
 15.19  after it has taken into account the dates on which taxes, 
 15.20  assessments, revenue collections, and other funds become 
 15.21  available to the government unit required to pay such charges.  
 15.22     Subd. 3.  [GENERAL POWERS OF GOVERNMENT UNITS; LOCAL TAX 
 15.23  LEVIES.] To accomplish any duty imposed on it by the board, the 
 15.24  governing body of every government unit may, in addition to the 
 15.25  powers granted in this act and in any other law or charter, 
 15.26  exercise the powers granted any municipality by Minnesota 
 15.27  Statutes, chapters 117, 412, 429, and 475, and sections 115.46, 
 15.28  444.075, and 471.59, with respect to the area of the government 
 15.29  unit located in the district.  In addition, the governing body 
 15.30  of every government unit located in whole or in part within the 
 15.31  district may levy taxes upon all taxable property in that part 
 15.32  of the government unit located in this district for all or a 
 15.33  part of the amount payable to the board.  If the levy is for 
 15.34  only part of the amount payable to the board, the governing body 
 15.35  of the government unit may levy additional taxes on the entire 
 15.36  net tax capacity of all taxable property of the government unit 
 16.1   for all or a part of the balance remaining payable.  The taxes 
 16.2   levied under this subdivision must be assessed and extended as a 
 16.3   tax upon the taxable property by the county auditor for the next 
 16.4   calendar year, free from any limit of rate or amount imposed by 
 16.5   law or charter.  The tax must be collected and remitted in the 
 16.6   same manner as other general taxes of the government unit. 
 16.7      Subd. 4.  [ALTERNATE LEVY.] In place of levying taxes on 
 16.8   all taxable property under subdivision 3, the governing body of 
 16.9   the government unit may elect to levy taxes upon the net tax 
 16.10  capacity of all taxable property, except agricultural property, 
 16.11  and upon only 25 percent of the net tax capacity of all 
 16.12  agricultural property, in that part of the government unit 
 16.13  located in the district for all or a part of the amount payable 
 16.14  to the board.  If the levy is for only part of the amount 
 16.15  payable to the board, the governing body may levy additional 
 16.16  taxes on the entire net tax capacity of all the property, 
 16.17  including agricultural property, for all or a part of the 
 16.18  balance.  The taxes must be assessed and extended as a tax upon 
 16.19  the taxable property by the county auditor for the next calendar 
 16.20  year, free from any limit of rate or amount imposed by law or 
 16.21  charter, and must be collected and remitted in the same manner 
 16.22  as other general taxes of the government unit.  In computing the 
 16.23  tax capacity under this subdivision, the county auditor must 
 16.24  include only 25 percent of the net tax capacity of all taxable 
 16.25  agricultural property and 100 percent of the net tax capacity of 
 16.26  all other taxable property in that part of the government unit 
 16.27  located within the district and, in spreading the levy, the 
 16.28  auditor must apply the mill rate upon the same percentages of 
 16.29  agricultural and nonagricultural taxable property.  If the 
 16.30  government unit elects to levy taxes under this subdivision and 
 16.31  any of the taxable agricultural property is reclassified so as 
 16.32  to no longer qualify as agricultural property, it is subject to 
 16.33  additional taxes.  The additional taxes must be in an amount 
 16.34  which, together with any additional taxes previously levied and 
 16.35  the estimated collection of additional taxes subsequently levied 
 16.36  on any other reclassified property, is determined by the 
 17.1   governing body of the government unit to be at least sufficient 
 17.2   to reimburse each other government unit for any excess current 
 17.3   costs reallocated to it as a result of the board deferring any 
 17.4   current cost under section 8 on account of the difference 
 17.5   between the amount of the current costs initially allocated to 
 17.6   each government unit based on the total net tax capacity of all 
 17.7   taxable property in the district and the amount of the current 
 17.8   costs reallocated to each government unit based on 25 percent of 
 17.9   the net tax capacity of agricultural property and 100 percent of 
 17.10  the net tax capacity of all other taxable property in the 
 17.11  district.  Any reimbursement must be made on terms which the 
 17.12  board determines to be just and reasonable.  These additional 
 17.13  taxes may be levied in any greater amount as the governing body 
 17.14  of the government unit determines to be appropriate, but the 
 17.15  total amount of the additional taxes must not exceed the 
 17.16  difference between: 
 17.17     (1) the total amount of taxes that would have been levied 
 17.18  upon the reclassified property to help pay current costs charged 
 17.19  in each year to the government unit by the board if that part of 
 17.20  the costs, if any, initially allocated by the board solely on 
 17.21  the basis of 100 percent of the net tax capacity of all taxable 
 17.22  property in the district and then reallocated on the basis of 
 17.23  inclusion of only 25 percent of the net tax capacity of 
 17.24  agricultural property in the district was not reallocated and if 
 17.25  the amount of taxes levied by the government unit each year 
 17.26  under this subdivision to pay current costs had been based on 
 17.27  the initial allocation and had been imposed upon 100 percent of 
 17.28  the net tax capacity of all taxable property, including 
 17.29  agricultural property, in that part of the government unit 
 17.30  located in the district; and 
 17.31     (2) the amount of taxes levied each year under this 
 17.32  subdivision upon reclassified property, plus interest on the 
 17.33  cumulative amount of the difference accruing each year at the 
 17.34  approximate average annual rate borne by bonds issued by the 
 17.35  board and outstanding at the beginning of the year or, if no 
 17.36  bonds are then outstanding, at a rate of interest which may be 
 18.1   determined by the board, but not exceeding the maximum rate of 
 18.2   interest that may then be paid on bonds issued by the board.  
 18.3   The additional taxes are a lien upon the reclassified property 
 18.4   assessed in the same manner and for the same duration as all 
 18.5   other ad valorem taxes levied upon the property.  The additional 
 18.6   taxes must be extended against the reclassified property on the 
 18.7   tax list for the current year and must be collected and remitted 
 18.8   in the same manner as other general taxes of the government 
 18.9   unit.  No penalties or additional interest may be levied on the 
 18.10  additional taxes if timely paid. 
 18.11     Subd. 5.  [DEBT LIMIT.] Any ad valorem taxes levied under 
 18.12  subdivision 3, by the governing body of a government unit to pay 
 18.13  any sums charged to it by the board pursuant to this act are not 
 18.14  subject to, or counted toward, any limit imposed by law on the 
 18.15  levy of taxes upon taxable property within any governmental unit.
 18.16     Subd. 6.  [DEFICIENCY TAX LEVIES.] If the local government 
 18.17  unit fails to make a payment to the board when due, the board 
 18.18  may certify to the Douglas county auditor the amount required 
 18.19  for payment, with interest at not more than the maximum rate per 
 18.20  year authorized at that time on assessments under Minnesota 
 18.21  Statutes, section 429.061, subdivision 2.  The auditor must levy 
 18.22  and extend the amount as a tax upon all taxable property in that 
 18.23  part of the government unit located in the district, for the 
 18.24  next calendar year, free from any limits imposed by law or 
 18.25  charter.  The tax must be collected in the same manner as other 
 18.26  general taxes of the government unit, and the proceeds, when 
 18.27  collected, shall be paid by the county treasurer to the 
 18.28  treasurer of the board and credited to the government unit for 
 18.29  which the tax was levied. 
 18.30     Sec. 10.  [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 
 18.31     Subdivision 1.  [PUBLIC HEARING REQUIREMENT ON SPECIFIC 
 18.32  PROJECT.] Before the board orders any project involving the 
 18.33  acquisition or betterment of any interceptor or treatment works, 
 18.34  all or a part of the cost of which will be allocated to local 
 18.35  government units under section 8 as current costs, the board 
 18.36  must hold a public hearing on the proposed project following two 
 19.1   publications in a newspaper or newspapers having general 
 19.2   circulation in the district, stating the time and place of the 
 19.3   hearing, the general nature and location of the project, the 
 19.4   estimated total cost of acquisition and betterment, that portion 
 19.5   of costs estimated to be paid out of federal and state grants, 
 19.6   and that portion of costs estimated to be allocated to each 
 19.7   local government unit affected.  The two publications must be a 
 19.8   week apart and the hearing must be at least three days after the 
 19.9   last publication.  Not less than 45 days before the hearing, 
 19.10  notice must also be mailed to each clerk of all local government 
 19.11  units in the district, but failure to give mailed notice of any 
 19.12  defects in the notice does not invalidate the proceedings.  The 
 19.13  project may include all or part of one or more interceptors or 
 19.14  treatment works.  A hearing is not required with respect to a 
 19.15  project, no part of the costs of which are to be allocated to 
 19.16  local government units as the current cost of acquisition, 
 19.17  betterment, and debt service.  
 19.18     Subd. 2.  [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 
 19.19  governing body of a local government unit in the district 
 19.20  proposes to assess against benefited property within units, all 
 19.21  or any part of the allocable costs of the project as provided in 
 19.22  subdivision 5, the governing body must, not less than ten days 
 19.23  before the hearing provided for in subdivision 1 mail a notice 
 19.24  of the hearing to the owner of each parcel within the area 
 19.25  proposed to be specially assessed and must also give one week's 
 19.26  published notice of the hearing.  The notice of hearing must 
 19.27  contain the same information provided in the notice published by 
 19.28  the board under subdivision 1, and in addition, a description of 
 19.29  the area proposed to be assessed by the local government unit.  
 19.30  To give mailed notice, owners must be those shown to be on the 
 19.31  records of the county auditor or, in a county where tax 
 19.32  statements are mailed by the county treasurer, on the records of 
 19.33  the county treasurer; but other appropriate records may be used 
 19.34  for this purpose.  However, for properties that are tax exempt 
 19.35  or subject to taxation on a gross earnings basis and are not 
 19.36  listed on the records of the county auditor or the county 
 20.1   treasurer, the owners may be ascertained by any practicable 
 20.2   means and mailed notice must be given to them.  Failure to give 
 20.3   mailed notice or any defects in the notice does not invalidate 
 20.4   the proceedings of the board or the local governing body.  
 20.5      Subd. 3.  [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 
 20.6   adoption of the resolution calling for the hearing, the board 
 20.7   shall get from the district engineer, or other competent person 
 20.8   of the board's selection, a preliminary report advising whether 
 20.9   the proposed project is feasible, necessary, and cost-effective, 
 20.10  and whether it should best be made as proposed or in connection 
 20.11  with another project, and the estimated costs of the project as 
 20.12  recommended.  No error or omission in the report invalidates the 
 20.13  proceeding.  The board may also take steps before the hearing 
 20.14  that will, in its judgment, provide helpful information in 
 20.15  determining the desirability and feasibility of the project 
 20.16  including, but not limited to, preparation of plans and 
 20.17  specifications and advertisement for bids.  The hearing may be 
 20.18  adjourned from time to time and a resolution ordering the 
 20.19  project may be adopted at any time within six months after the 
 20.20  date of hearing.  In ordering the project, the board may reduce 
 20.21  but not increase the extent of the project as stated in the 
 20.22  notice of hearing, unless another hearing is held, and must find 
 20.23  that the project as ordered is in accordance with the 
 20.24  comprehensive plan and program adopted by the board under 
 20.25  section 4.  
 20.26     Subd. 4.  [EMERGENCY ACTION.] If the board by resolution 
 20.27  adopted by the affirmative vote of not less than two-thirds of 
 20.28  its members determines that an emergency exists requiring the 
 20.29  immediate purchase of materials or supplies or the making of 
 20.30  emergency repairs, it may order the purchase of the supplies and 
 20.31  materials and the making of the repairs before any hearing 
 20.32  required under this section.  But the board must set as early a 
 20.33  date as practicable for that hearing at the time it declares the 
 20.34  emergency.  All other provisions of this section must be 
 20.35  followed in giving notice of and conducting a hearing.  This 
 20.36  subdivision does not prevent the board or its agents from 
 21.1   purchasing maintenance supplies or incurring maintenance costs 
 21.2   without regard to the requirements of this section.  
 21.3      Subd. 5.  [POWER OF GOVERNMENT UNIT TO SPECIALLY ASSESS.] A 
 21.4   local government unit may specially assess all or part of the 
 21.5   costs of acquisition and betterment of any project ordered by 
 21.6   the board under this section.  A special assessment must be 
 21.7   levied in accordance with Minnesota Statutes, sections 429.051 
 21.8   to 429.081, except as otherwise provided in this subdivision.  
 21.9   No other provisions of Minnesota Statutes, chapter 429, apply.  
 21.10  For purposes of levying special assessments, the hearing on the 
 21.11  project required in subdivision 1 must serve as the hearing on 
 21.12  the making of the original improvement provided for by Minnesota 
 21.13  Statutes, section 429.051.  The area assessed may be less than 
 21.14  but must not exceed the area proposed to be assessed as stated 
 21.15  in the notice of hearing on the project provided for in 
 21.16  subdivision 2.  To determine the allocable cost of the project 
 21.17  to the local government units, the government unit may adopt one 
 21.18  of the procedures in paragraph (a) or (b).  
 21.19     (a) At any time after a contract is let for the project, 
 21.20  the local government unit may get from the board a current 
 21.21  written estimate, on the basis of historical and reasonably 
 21.22  projected data, of that part of the total cost of acquisition 
 21.23  and betterment of the project or of some part of the project 
 21.24  that will be allocated to the local government unit and the 
 21.25  number of years over which such costs will be allocated as 
 21.26  current costs of acquisition, betterment, and debt service under 
 21.27  section 8.  The board is not bound by this estimate for 
 21.28  allocating the costs of the project to local government units. 
 21.29     (b) The governing body may get from the board a written 
 21.30  statement showing, for the prior period that the governing body 
 21.31  designates, that part of the costs previously allocated to the 
 21.32  local government unit as current costs of acquisition, 
 21.33  betterment, and debt service only, of all or any part of the 
 21.34  project designated by the governing body.  In addition to the 
 21.35  allocable costs, the local government unit may include in the 
 21.36  total expense, as a basis for levying assessments, all other 
 22.1   expenses incurred directly by the local government unit in 
 22.2   connection with the project.  Special assessments levied by the 
 22.3   government unit with respect to previously allocated costs 
 22.4   ascertained under this paragraph are payable in equal annual 
 22.5   installments extending over a period not exceeding by more than 
 22.6   one year the number of years that the costs have been allocated 
 22.7   to the local government unit or the estimated useful life of the 
 22.8   project, or part of the project, whichever number of years is 
 22.9   the lesser.  No limit is placed on the number of times the 
 22.10  governing body of a local government unit may assess the 
 22.11  previously allocated costs not previously assessed by the 
 22.12  government unit.  The power to specially assess provided for in 
 22.13  this section is in addition and supplemental to all other powers 
 22.14  of local government units to levy special assessments. 
 22.15     Sec. 11.  [INITIAL COSTS.] 
 22.16     Subdivision 1.  [CONTRIBUTIONS OR ADVANCES FROM LOCAL 
 22.17  GOVERNMENT UNITS.] The board may, at the time it considers 
 22.18  necessary and proper, request from a local government unit 
 22.19  necessary money to defray the costs of any obligations assumed 
 22.20  under section 5 and the costs of administration, operation, and 
 22.21  maintenance.  Before making a request, the board must, by formal 
 22.22  resolution, determine the necessity for the money, setting forth 
 22.23  the purposes for which the money is needed and the estimated 
 22.24  amount for each purpose.  Upon receiving a request, the 
 22.25  governing body of each local government unit may provide for 
 22.26  payment of the amount requested as it considers fair and 
 22.27  reasonable.  The money may be paid out of general revenue funds 
 22.28  or any other available funds of any local government unit and 
 22.29  its governing body thereof may levy taxes to provide funds, free 
 22.30  from any existing limit imposed by law or charter.  Money may be 
 22.31  provided by government units with or without interest, but if 
 22.32  interest is charged it must not exceed five percent per year.  
 22.33  The board must credit the local government unit for the payments 
 22.34  in allocating current costs under section 8, on the terms and at 
 22.35  the times as are agreed to with the local government unit. 
 22.36     Subd. 2.  [LIMITED TAX LEVY.] The board may levy ad valorem 
 23.1   taxes on all taxable property in the district to defray any of 
 23.2   the costs described in subdivision 1, provided the costs have 
 23.3   not been defrayed by contribution under subdivision 1.  Before 
 23.4   certifying a levy to the county auditor, the board must 
 23.5   determine the need for the money to be derived from the levy by 
 23.6   formal resolution setting forth the purposes for which the tax 
 23.7   money will be used and the amount proposed to be used for each 
 23.8   purpose.  In allocating current costs under section 8, the board 
 23.9   must credit the government units for taxes collected under the 
 23.10  levy made under this subdivision on the terms and at the time 
 23.11  the board considers fair and reasonable and on terms consistent 
 23.12  with section 8, subdivision 2. 
 23.13     Sec. 12.  [BONDS CERTIFICATES AND OTHER OBLIGATIONS.] 
 23.14     Subdivision 1.  [BUDGET ANTICIPATION CERTIFICATES OF 
 23.15  INDEBTEDNESS.] (a) Before adopting its annual budget and in 
 23.16  anticipation of the collection of tax and other revenues 
 23.17  estimated and set forth by the board in the budget, the board 
 23.18  may by resolution, authorize the issuance, negotiation, and sale 
 23.19  in accordance with subdivision 5 in such form and manner and 
 23.20  upon such terms as it may determine of its negotiable general 
 23.21  obligation certificates of indebtedness in aggregate principal 
 23.22  amounts not exceeding 50 percent of the total amount of such tax 
 23.23  collections and other revenues and maturing not later than three 
 23.24  months after the close of the budget year in which issued.  
 23.25  Revenues listed in clauses (1) to (3) must not be anticipated 
 23.26  for this purpose: 
 23.27     (1) taxes already anticipated by the issuance of 
 23.28  certificates under subdivision 2; 
 23.29     (2) deficiency taxes levied pursuant to this subdivision; 
 23.30  and 
 23.31     (3) taxes levied for the payment of certificates issued 
 23.32  pursuant to subdivision 3. 
 23.33     (b) The proceeds of the sale of the certificates must be 
 23.34  used only for the purposes for which tax collections and other 
 23.35  revenues are to be expended under the budget. 
 23.36     (c) All tax collections and other revenues included in the 
 24.1   budget for the budget year, after the expenditures of tax 
 24.2   collections and other revenues in accordance with the budget, 
 24.3   must be irrevocably pledged and appropriated to a special fund 
 24.4   to pay the principal and interest on the certificates when due.  
 24.5      (d) If for any reason the tax collections and other 
 24.6   revenues are insufficient to pay the certificates and interest 
 24.7   when due, the board must levy a tax in the amount of the 
 24.8   deficiency on all taxable property in the district and must 
 24.9   appropriate this amount when received to the special fund.  
 24.10     Subd. 2.  [TAX LEVY ANTICIPATION CERTIFICATES OF 
 24.11  INDEBTEDNESS.] After a tax is levied by the board under section 
 24.12  11, subdivision 2, and certified to the county auditors in 
 24.13  anticipation of the collection of the tax, if the tax has not 
 24.14  been anticipated by the issuance of certificates under 
 24.15  subdivision 1, the board may, by resolution, authorize the 
 24.16  issuance, negotiation, and sale in accordance with subdivision 5 
 24.17  in the form and manner and on the terms and conditions as it 
 24.18  determines its negotiable general obligation tax levy 
 24.19  anticipation certificates of indebtedness in aggregate principal 
 24.20  amounts not exceeding 50 percent of the uncollected tax for 
 24.21  which no penalty for nonpayment or delinquency has been 
 24.22  attached.  The certificates must mature not later than April 1 
 24.23  in the year after the year in which the tax is collectible.  The 
 24.24  proceeds of the tax in anticipation of which the certificates 
 24.25  were issued and other funds that may become available must be 
 24.26  applied to the extent necessary to repay the certificates.  
 24.27     Subd. 3.  [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 
 24.28  any budget year the receipts of tax and other revenues for some 
 24.29  unforeseen cause become insufficient to pay the board's current 
 24.30  expenses, or if any calamity or other public emergency subjects 
 24.31  it to the necessity of making extraordinary expenditures, the 
 24.32  board may by resolution authorize the issuance, negotiation, and 
 24.33  sale in accordance with subdivision 5 in the form and manner and 
 24.34  on the terms and conditions as it may determine of its 
 24.35  negotiable general obligation certificates of indebtedness in an 
 24.36  amount sufficient to meet the deficiency, and the board must 
 25.1   levy on all taxable property in the district a tax sufficient to 
 25.2   pay the certificates and interest and shall appropriate all 
 25.3   collections of the tax to a special fund created for the payment 
 25.4   of the certificates and interest. 
 25.5      Subd. 4.  [GENERAL OBLIGATION BONDS.] The board may by 
 25.6   resolution authorize the issuance of general obligation bonds 
 25.7   maturing serially in one or more annual or semiannual 
 25.8   installments for the acquisition or betterment of any part of 
 25.9   the district disposal system, including but not limited to, the 
 25.10  payment of interest during construction and for a reasonable 
 25.11  period thereafter, or for the refunding of outstanding bonds, 
 25.12  certificates of indebtedness, or judgments.  The board must 
 25.13  pledge its full faith and credit and taxing power for the 
 25.14  payment of the bonds and shall provide for the issuance and sale 
 25.15  and for the security of the bonds in the manner provided in 
 25.16  Minnesota Statutes, chapter 475, and must have the same powers 
 25.17  and duties as a municipality issuing bonds under that law.  An 
 25.18  election is not required to authorize the issuance of bonds and 
 25.19  the debt limit of Minnesota Statutes, chapter 475, do not apply 
 25.20  to the bonds.  The board may also pledge for the payment of the 
 25.21  bonds and deduct from the amount of any tax levy required under 
 25.22  Minnesota Statutes, section 475.61, subdivision 1, any sums 
 25.23  receivable under section 9 or any state and federal grants 
 25.24  anticipated by the board and may covenant to refund the bonds if 
 25.25  and when and to the extent that for any reason the revenues, 
 25.26  together with other funds properly available and appropriated 
 25.27  for the purpose, are not sufficient to pay all principal and 
 25.28  interest due or about to become due; if the revenues have not 
 25.29  been anticipated by the issuance of certificates under 
 25.30  subdivision 1.  All bonds that have been or shall hereafter be 
 25.31  issued and sold in conformity with the provisions of this 
 25.32  subdivision, and otherwise in conformity with law, are hereby 
 25.33  authorized, legalized, and validated. 
 25.34     Subd. 5.  [MANNER OF SALE AND ISSUANCE OF 
 25.35  CERTIFICATES.] Certificates issued under subdivisions 1, 2, and 
 25.36  3 may be issued and sold by negotiation, without public sale, 
 26.1   and may be sold at a price equal to the percentage of their par 
 26.2   value, plus accrued interest, and bearing interest at the rate 
 26.3   or rates as may be determined by the board.  No election is 
 26.4   required to authorize the issuance of certificates.  
 26.5   Certificates must bear the same rate of interest after maturity 
 26.6   as before and the full faith and credit and taxing power of the 
 26.7   board must be pledged to the payment of the certificates.  
 26.8      Sec. 13.  [TAX LEVIES.] 
 26.9      The board may levy taxes to pay the bonds or other 
 26.10  obligations assumed by the district under section 5 and for debt 
 26.11  service of the district disposal system authorized in section 12 
 26.12  upon all taxable property within the district without limit of 
 26.13  rate or amount and without affecting the amount or rate of taxes 
 26.14  that may be levied by the board for other purposes or by any 
 26.15  local government unit in the district.  No other provision of 
 26.16  law relating to debt limit shall restrict or in any way limit 
 26.17  the power of the board to issue the bonds and certificates 
 26.18  authorized in section 12.  The board may also levy taxes as 
 26.19  provided in sections 9 and 11.  The county auditor must annually 
 26.20  assess and extend upon the tax rolls the part of the taxes 
 26.21  levied by the board in each year that is certified to the 
 26.22  auditor by the board.  The county treasurer must collect and 
 26.23  make settlement of the taxes with the treasurer of the board. 
 26.24     Sec. 14.  [DEPOSITORIES.] 
 26.25     The board must from time to time designate one or more 
 26.26  national or state banks or trust companies authorized to do a 
 26.27  banking business as official depositories for money of the 
 26.28  board, and must require the treasurer to deposit all or a part 
 26.29  of the money in those institutions.  The designation must be in 
 26.30  writing and must set forth all the terms and conditions on which 
 26.31  the deposits are made, and must be signed by the chair and 
 26.32  treasurer, and made a part of the minutes of the board.  A 
 26.33  designated bank or trust company must qualify as a depository by 
 26.34  furnishing a corporate surety bond or collateral in the amount 
 26.35  required by Minnesota Statutes, section 118A.03.  But, no bond 
 26.36  or collateral is required to secure any deposit insofar as it is 
 27.1   insured under federal law. 
 27.2      Sec. 15.  [MONEY; ACCOUNTS AND INVESTMENTS.] 
 27.3      Subdivision 1.  [RECEIPT AND APPLICATION.] All money 
 27.4   received by the board must be deposited or invested by the 
 27.5   treasurer and disposed of as the board directs in accordance 
 27.6   with its budget.  But any money that has been pledged or 
 27.7   dedicated by the board to the payment of obligations or interest 
 27.8   on them or expenses incident to them, or for any other specific 
 27.9   purpose authorized by law, must be paid by the treasurer into 
 27.10  the fund to which they have been pledged.  
 27.11     Subd. 2.  [FUNDS AND ACCOUNTS.] The board's treasurer must 
 27.12  establish funds and accounts as necessary or convenient to 
 27.13  handle the receipts and disbursements of the board in an orderly 
 27.14  fashion.  
 27.15     Subd. 3.  [DEPOSIT AND INVESTMENT.] The money on hand in 
 27.16  the board's funds and accounts may be deposited in the official 
 27.17  depositories of the board or invested as provided in this 
 27.18  subdivision.  The amount not currently needed or required by law 
 27.19  to be kept in cash on deposit may be invested in obligations 
 27.20  authorized by law for the investment of municipal sinking 
 27.21  funds.  The money may also be held under certificates of deposit 
 27.22  issued by any official depository of the board.  All investments 
 27.23  by the board must conform to an investment policy adopted by the 
 27.24  board as amended from time to time.  
 27.25     Subd. 4.  [BOND PROCEEDS.] The use of proceeds of all bonds 
 27.26  issued by the board for the acquisition and betterment of the 
 27.27  district disposal system, and the use, other than investment, of 
 27.28  all money on hand in any sinking fund or funds of the board must 
 27.29  be governed by Minnesota Statutes, chapter 475, this act, and 
 27.30  the resolutions authorizing the issuance of the bonds.  The bond 
 27.31  proceeds, when received, must be transferred to the treasurer of 
 27.32  the board for safekeeping, investment, and payment of the costs 
 27.33  for which they were issued.  
 27.34     Subd. 5.  [AUDIT.] The board must provide for and pay the 
 27.35  cost of an independent annual audit of its official books and 
 27.36  records by the state auditor or a certified public accountant.  
 28.1      Sec. 16.  [GENERAL POWERS OF BOARD.] 
 28.2      Subdivision 1.  [ALL NECESSARY OR CONVENIENT POWERS.] The 
 28.3   board has powers necessary or convenient to discharge the duties 
 28.4   imposed upon it by law.  The powers include those specified in 
 28.5   this act, but the express grant or enumeration of powers does 
 28.6   not limit the generality or scope of the grant of power in this 
 28.7   subdivision. 
 28.8      Subd. 2.  [LAWSUITS.] The board may sue or be sued.  
 28.9      Subd. 3.  [CONTRACTS.] The board may enter into any 
 28.10  contract necessary or proper for the exercise of its powers or 
 28.11  the accomplishment of its purposes.  
 28.12     Subd. 4.  [RULES.] The board may adopt rules relating to 
 28.13  the board's responsibilities and may provide penalties not 
 28.14  exceeding the maximum penalty specified for a misdemeanor, and 
 28.15  the cost of prosecution may be added to the penalties imposed.  
 28.16  Any rule prescribing a penalty for violation must be published 
 28.17  at least once in a newspaper having general circulation in the 
 28.18  district.  A violation may be prosecuted before any court in the 
 28.19  district having jurisdiction of misdemeanor, and every court has 
 28.20  jurisdiction of violations.  A peace officer of any municipality 
 28.21  in the district may make arrests for violations committed 
 28.22  anywhere in the district in the manner and with the effect as 
 28.23  for violations of municipal ordinances or for statutory 
 28.24  misdemeanors.  All fines collected must be deposited in the 
 28.25  treasury of the board, or may be allocated between the board and 
 28.26  the municipality in which the prosecution occurs on terms agreed 
 28.27  to by the board and the municipality.  
 28.28     Subd. 5.  [GIFTS; GRANTS.] The board may accept gifts, may 
 28.29  apply for and accept grants or loans of money or other property 
 28.30  from the United States, the state, or any person for any of its 
 28.31  purposes, may enter into any agreement required to get the gift, 
 28.32  grant, loan, or other property; and may hold, use, and dispose 
 28.33  of money or property in accordance with the terms of the gift, 
 28.34  grant, loan or agreement.  With respect to any loans or grants 
 28.35  of funds or real or personal property or other assistance from 
 28.36  any state or federal government or any agency or instrumentality 
 29.1   of the government, the board may contract to do and perform all 
 29.2   acts and things required as a condition or consideration under 
 29.3   state or federal law or rule or regulation, whether or not 
 29.4   included among the powers expressly granted to the board in this 
 29.5   act.  
 29.6      Subd. 6.  [JOINT POWERS.] The board may act under Minnesota 
 29.7   Statutes, section 471.59, or any other appropriate law providing 
 29.8   for joint or cooperative action between government units.  
 29.9      Subd. 7.  [RESEARCH; HEARINGS; INVESTIGATIONS; ADVISE.] The 
 29.10  board may conduct research studies and programs, collect and 
 29.11  analyze data, prepare reports, maps, charts, and tables, and 
 29.12  conduct all necessary hearings and investigations in connection 
 29.13  with the design, construction, and operation of the district 
 29.14  disposal system, and may advise and assist other government 
 29.15  units on system planning matters within the scope of its powers, 
 29.16  duties, and objectives, and may provide at the request of any 
 29.17  governmental unit other technical and administrative assistance 
 29.18  as the board considers appropriate for the government unit to 
 29.19  carry out the powers and duties vested in the government unit 
 29.20  under this act or imposed on or by the board.  
 29.21     Subd. 8.  [EMPLOYEES; CONTRACTORS; INSURANCE.] The board 
 29.22  may employ on the terms it considers advisable, persons or firms 
 29.23  performing engineering, legal, or other services of a 
 29.24  professional nature; require any employee to get and file with 
 29.25  it an individual bond or fidelity insurance policy; and procure 
 29.26  insurance in the amounts it considers necessary against 
 29.27  liability of the board or its officers or both, for personal 
 29.28  injury or death and property damage or destruction, with the 
 29.29  force and effect stated in Minnesota Statutes, chapter 466, and 
 29.30  against risks of damage to or destruction of any of its 
 29.31  facilities, equipment, or other property as it considers 
 29.32  necessary.  
 29.33     Subd. 9.  [PROPERTY.] The board may acquire by purchase, 
 29.34  lease, condemnation, gift, or grant, real or personal property 
 29.35  including positive and negative easements and water and air 
 29.36  rights, and it may construct, enlarge, improve, replace, repair, 
 30.1   maintain, and operate any interceptor, treatment works, or water 
 30.2   facility determined to be necessary or convenient for the 
 30.3   collection and disposal of sewage in the district.  Any local 
 30.4   government unit and the commissioners of transportation and 
 30.5   natural resources may convey to or permit the use of these 
 30.6   facilities owned or controlled by the board, subject to the 
 30.7   rights of the holders of any bonds issued with respect to them 
 30.8   with or without compensation and without an election or approval 
 30.9   by any other government unit or agency.  All powers conferred by 
 30.10  this subdivision may be exercised both within or outside the 
 30.11  district as may be necessary for the exercise by the board of 
 30.12  its powers or the accomplishment of its purposes.  The board may 
 30.13  hold, lease, convey, or otherwise dispose of such property for 
 30.14  its purposes, upon the terms and in the manner it deems 
 30.15  advisable.  Unless otherwise provided, the right to acquire 
 30.16  lands and property rights by condemnation must be exercised in 
 30.17  accordance with Minnesota Statutes, chapter 117, and must apply 
 30.18  to any property or interest in property owned by any local 
 30.19  government unit.  But property devoted to an actual public use 
 30.20  at the time, or held to be devoted to such use within a 
 30.21  reasonable time, must not be so acquired unless a court of 
 30.22  competent jurisdiction determines that the use proposed by the 
 30.23  board is paramount.  In case of property in actual public use, 
 30.24  the board may take possession of any property of which 
 30.25  condemnation proceedings have begun at any time after the 
 30.26  issuance of a court order appointing commissioners for its 
 30.27  condemnation.  
 30.28     Subd. 10.  [RIGHTS-OF-WAY.] The board may construct or 
 30.29  maintain its systems or facilities in, along, on, under, over, 
 30.30  or through public waters, streets, bridges, viaducts, and other 
 30.31  public right-of-way without first getting a franchise from any 
 30.32  county or local government unit having jurisdiction over them.  
 30.33  But the facilities must be constructed and maintained in 
 30.34  accordance with the ordinances and resolutions of the county or 
 30.35  government unit relating to construction, installation, and 
 30.36  maintenance of similar facilities on public properties and must 
 31.1   not unnecessarily obstruct the public use of the rights-of-way. 
 31.2      Subd. 11.  [DISPOSAL OF PROPERTY.] The board may sell, 
 31.3   lease, or otherwise dispose of any real or personal property 
 31.4   acquired by it that is no longer required to accomplish its 
 31.5   purposes.  The property may be sold in the manner provided by 
 31.6   Minnesota Statutes, section 469.065, insofar as practical.  The 
 31.7   board may give notice of sale it considers appropriate.  When 
 31.8   the board determines that any property or any part of the 
 31.9   district disposal system that has been acquired from a local 
 31.10  government unit without compensation is no longer required, but 
 31.11  is required as a local facility by the government unit from 
 31.12  which is was acquired, the board may by resolution transfer it 
 31.13  to the government unit.  
 31.14     Subd. 12.  [JOINT OPERATIONS.] The board may contract with 
 31.15  the United States or an agency of it, any state or agency of it, 
 31.16  or any regional public planning body in the state with 
 31.17  jurisdiction over any part of the district, or any other 
 31.18  municipal or public corporation, or governmental subdivision in 
 31.19  any state, for the joint use of any facility owned by the board 
 31.20  or the entity, for the operation by the entity of any system or 
 31.21  facility of the board, or for the performance on the board's 
 31.22  behalf of any service including, but not limited to, planning, 
 31.23  on the terms that may be agreed to by the contracting parties.  
 31.24  Unless designated by the board as a local sanitary sewer 
 31.25  facility, any treatment works or interceptor jointly used, or 
 31.26  operated on behalf of the board, as provided in this 
 31.27  subdivision, must be considered to be operated by the board to 
 31.28  include the facilities in the district disposal system.  
 31.29     Sec. 17.  [LOCAL FACILITIES.] 
 31.30     Subdivision 1.  [SANITARY SEWER FACILITIES.] Except as 
 31.31  otherwise provided in this act, local government units must 
 31.32  retain responsibility for the planning, design, acquisition, 
 31.33  betterment, operation, administration, and maintenance of all 
 31.34  local sanitary sewer facilities as provided by law.  
 31.35     Subd. 2.  [ASSUMPTION OF RESPONSIBILITY OVER LOCAL SANITARY 
 31.36  SEWER FACILITIES.] The board must upon request of any government 
 32.1   unit assume, either alone or jointly with the local government 
 32.2   unit, all or any part of the responsibility of the local 
 32.3   government unit described in subdivision 1.  Except as provided 
 32.4   in subdivision 4 and to exercise the responsibility, the board 
 32.5   has all the powers and duties elsewhere conferred in this act 
 32.6   with the same force and effect as if the local sanitary sewer 
 32.7   facilities were a part of the district disposal system.  
 32.8      Subd. 3.  [WATER AND STREET FACILITIES.] The board may, on 
 32.9   request of any governmental unit, enter into an agreement under 
 32.10  which the board may assume, either alone or jointly with such 
 32.11  unit, the responsibility to get and construct water and street 
 32.12  facilities in conjunction with any project for the acquisition 
 32.13  or betterment of the district disposal system or any project 
 32.14  undertaken by the board under subdivision 2.  Except as provided 
 32.15  in subdivision 4, and to exercise any responsibilities under 
 32.16  this subdivision, the board has all the powers and duties 
 32.17  elsewhere conferred in this act with the same force and effect 
 32.18  as if the water or street facilities were a part of the district 
 32.19  disposal system.  
 32.20     Subd. 4.  [ALLOCATION OF CURRENT COSTS.] All current costs 
 32.21  attributable to responsibilities assumed by the board over local 
 32.22  sanitary sewer facilities and water and street facilities as 
 32.23  provided in this section must be allocated solely to the local 
 32.24  unit for or with whom the responsibilities are assumed on the 
 32.25  terms and over a period as the board determines to be equitable 
 32.26  and in the best interest of the district.  But if two or more 
 32.27  government units form a region in accordance with this section 
 32.28  all or part of the current costs attributable to the region 
 32.29  must, at the request of its joint board, be allocated to the 
 32.30  region and provided in the agreement establishing the region.  
 32.31     Subd. 5.  [PART OF DISTRICT SYSTEM.] This section or any 
 32.32  other part of this act does not prevent the board from 
 32.33  including, where appropriate, treatment works or interceptors, 
 32.34  previously designated or treated as local sanitary sewer 
 32.35  facilities, as a part of the district disposal system. 
 32.36     Sec. 18.  [SERVICE CONTRACTS WITH GOVERNMENTS OUTSIDE 
 33.1   DISTRICT.] 
 33.2      The board may contract with the United States or any agency 
 33.3   of it, any state or any agency of it, or any municipal or public 
 33.4   corporation, governmental subdivision or agency, or political 
 33.5   subdivision in any state, outside the jurisdiction of the board, 
 33.6   for furnishing to the entities any services which the board may 
 33.7   furnish to local government units in the district under this act 
 33.8   including, but not limited to, planning for and the acquisition, 
 33.9   betterment, operation, administration, and maintenance of any or 
 33.10  all interceptors, treatment works, and local sanitary sewer 
 33.11  facilities; if the board may further include as one of the terms 
 33.12  of the contract that the entity also pay to the board an amount 
 33.13  as may be agreed upon as a reasonable estimate of the 
 33.14  proportionate share properly allocable to the entity of costs of 
 33.15  acquisition, betterment, and debt service previously allocated 
 33.16  to local government units in the district.  When the payments 
 33.17  are made by the entities to the board, they must be applied in 
 33.18  reduction of the total amount of costs allocated after that to 
 33.19  each local government unit in the district, on the equitable 
 33.20  basis the board considers to be in the best interest of the 
 33.21  district.  Any municipality in the state may enter into the 
 33.22  contract and perform all acts and things required as a condition 
 33.23  or consideration for it consistent with the purpose of this act, 
 33.24  whether or not included among the powers otherwise granted to 
 33.25  the municipality by law or charter, the powers to include those 
 33.26  powers set out in section 9, subdivisions 3, 3a, and 4. 
 33.27     Sec. 19.  [CONSTRUCTION, MATERIALS, SUPPLIES, EQUIPMENT; 
 33.28  CONTRACTS.] 
 33.29     Subdivision 1.  [PLANS AND SPECIFICATIONS.] When the board 
 33.30  orders a project involving the acquisition or betterment of a 
 33.31  part of the district disposal system, it must cause plans and 
 33.32  specifications of this project to be made, or if previously 
 33.33  made, to be modified, if necessary, and to be approved by the 
 33.34  agency if required, and after any required approval by the 
 33.35  agency, one or more contracts for work and materials called for 
 33.36  by the plans and specification may be awarded as provided in 
 34.1   this section.  
 34.2      Subd. 2.  [UNIFORM MUNICIPAL CONTRACTING LAW.] All 
 34.3   contracts for work to be done or for purchases of materials, 
 34.4   supplies, or equipment must be done in accordance with Minnesota 
 34.5   Statutes, section 471.345.  
 34.6      Sec. 20.  [ANNEXATION, WITHDRAWAL OF TERRITORY.] 
 34.7      Subdivision 1.  [ANNEXATION.] Any municipality in Douglas 
 34.8   county, upon resolution adopted by a four-fifths vote of its 
 34.9   governing body, may petition the board for annexation to the 
 34.10  district of the area then comprising the municipality or any 
 34.11  part of it and, if accepted by the board, the area must be 
 34.12  considered annexed to the district and subject to the 
 34.13  jurisdiction of the board under the terms and provisions of this 
 34.14  act.  The territory so annexed is subject to taxation and 
 34.15  assessment under this act and is subject to taxation by the 
 34.16  board like other property in the district for the payment of 
 34.17  principal and interest thereafter becoming due on general 
 34.18  obligations of the board, whether authorized or issued before or 
 34.19  after the annexation.  The board may condition approval of the 
 34.20  annexation upon the contribution, by or on behalf of the 
 34.21  municipality petitioning for annexation, to the board of an 
 34.22  amount as may be agreed upon as being a reasonable estimate of 
 34.23  the proportionate share, properly allocable to the municipality, 
 34.24  of cost or acquisition, betterment, and debt service previously 
 34.25  allocated to local government units in the district, on the 
 34.26  terms as may be agreed upon and in place of or in addition to 
 34.27  further conditions as the board deems in the best interests of 
 34.28  the district.  Notwithstanding any other provisions of this act 
 34.29  to the contrary, the conditions established for annexation may 
 34.30  include the requirement that the annexed municipality pay for, 
 34.31  contract for, and oversee the construction of local sanitary 
 34.32  sewer facilities and interceptor sewers as those terms are 
 34.33  defined in section 1.  To pay the contribution or satisfy any 
 34.34  other condition established by the board, the municipality 
 34.35  petitioning annexation may exercise the powers conferred in 
 34.36  section 9.  When the contributions are made by the municipality 
 35.1   to the board, they must be applied to reduce the total amount of 
 35.2   costs thereafter allocated to each local government unit in the 
 35.3   district, on the equitable basis as the board considers to be in 
 35.4   the best interests of the district, applying so far as 
 35.5   practicable and appropriate the criteria set forth in section 8, 
 35.6   subdivision 2.  On annexation of the territory, the secretary of 
 35.7   the board must certify to the auditor and treasurer of the 
 35.8   county in which the municipality is located the fact of the 
 35.9   annexation and a legal description of the territory annexed.  
 35.10     Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
 35.11  the district by resolution of its governing body.  The 
 35.12  municipality must notify the board of the district of the 
 35.13  withdrawal by providing a copy of the resolution at least two 
 35.14  years in advance of the proposed withdrawal.  Unless the 
 35.15  district and the withdrawing member agree otherwise by action of 
 35.16  their governing bodies, the taxable property of the withdrawing 
 35.17  member is subject to its required property tax levies under this 
 35.18  act for two taxes payable years following the notification of 
 35.19  the withdrawal and the withdrawing member retains any rights, 
 35.20  obligations, and liabilities obtained or incurred during its 
 35.21  participation. 
 35.22     Sec. 21.  [PROPERTY EXEMPT FROM TAXATION.] 
 35.23     Any properties, real or personal, owned, leased, 
 35.24  controlled, used, or occupied by the sanitary sewer board for 
 35.25  any purpose under this act are declared to be acquired, owned, 
 35.26  leased, controlled, used, and occupied for public, governmental, 
 35.27  and municipal purposes, and are exempt from taxation by the 
 35.28  state or any political subdivision of the state; but the 
 35.29  properties are subject to special assessments levied by a 
 35.30  political subdivision for a local improvement in amounts 
 35.31  proportionate to and not exceeding the special benefit received 
 35.32  by the properties from the improvement.  No possible use of any 
 35.33  of the properties in any manner different from their use as part 
 35.34  of the disposal system at the time may be considered in 
 35.35  determining the special benefit received by the properties.  All 
 35.36  of the assessments are subject to final approval by the board, 
 36.1   whose determination of the benefits is conclusive upon the 
 36.2   political subdivision levying the assessment.  All bonds, 
 36.3   certificates of indebtedness, or other obligations of the board, 
 36.4   and the interest on them, are exempt from taxation by the state 
 36.5   or any political subdivision of the state.  
 36.6      Sec. 22.  [RELATION TO EXISTING LAWS.] 
 36.7      This act prevails over any law or charter inconsistent with 
 36.8   it.  The powers conferred on the board under this act do not 
 36.9   diminish or supersede the powers conferred on the agency by 
 36.10  Minnesota Statutes, chapters 115 and 116.  
 36.11     Sec. 23.  [APPLICATION; EFFECTIVE DATE; LOCAL APPROVAL; OPT 
 36.12  IN OR OUT.] 
 36.13     Subdivision 1.  [APPLICATION.] This act applies to the 
 36.14  townships of Brandon, Carlos, LaGrand, Leaf Valley, Miltona, and 
 36.15  Moe, all in Douglas county. 
 36.16     Subd. 2.  [EFFECTIVE DATE; LOCAL APPROVAL.] (a) This act is 
 36.17  effective only if at least four of the townships listed in 
 36.18  subdivision 1 and their chief clerical officers pass and file a 
 36.19  resolution of approval of the act and otherwise comply with 
 36.20  paragraph (b). 
 36.21     (b) If the threshold in paragraph (a) is met, this act is 
 36.22  effective January 1, 2004, as to as many of the six townships 
 36.23  listed in subdivision 1 that have approved resolutions and whose 
 36.24  chief clerical officers have completed compliance with Minnesota 
 36.25  Statutes, section 645.021, subdivisions 2 and 3, by that date, 
 36.26  unless all six of the townships listed in subdivision 1 and 
 36.27  their chief clerical officers have timely completed their 
 36.28  compliance with Minnesota Statutes, section 645.021, 
 36.29  subdivisions 2 and 3, in which case Minnesota Statutes, section 
 36.30  645.02, applies. 
 36.31     (c) A township listed in subdivision 1 that fails to adopt 
 36.32  a resolution of approval as prescribed in paragraph (a) may opt 
 36.33  back in to the district at a later time by annexation as 
 36.34  provided in this act.