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Minnesota Legislature

Office of the Revisor of Statutes

SF 1489

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:21am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to the Central Lakes Region Sanitary District; exempting certain bonds
from elector approval; authorizing special charges; authorizing dissolution of
the district; amending Laws 2003, chapter 127, article 9, section 9, by adding
subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2003, chapter 127, article 9, section 9, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Clarification, no election required for local bonds for district disposal
system.
new text end

new text begin Notwithstanding Minnesota Statutes, section 475.58, or any other law to the
contrary, approval by the electors is not required for either the Central Lakes Region
Sanitary District, or its local government units located in whole or in part in the district, to
issue obligations to fund any costs associated with the district disposal system, including
but not limited to the planning, administration, operation, maintenance, acquisition,
betterment, and debt service of the system.
new text end

Sec. 2.

Laws 2003, chapter 127, article 9, section 9, is amended by adding a
subdivision to read:


new text begin Subd. 8. new text end

new text begin Special charges authorized. new text end

new text begin In order to pay, finance, and enforce
collection of costs allocated to it by the district for the planning, administration, operation,
maintenance, acquisition, betterment, and debt service of the district disposal system, the
governing body of a local government unit may fix special charges with respect to the area
of the government unit located in the district or on the entire net tax capacity of all taxable
property of the government unit, or some combination of the two:
new text end

new text begin (1) by reference to the zoning classification of property being charged;
new text end

new text begin (2) by reference to the quantity, pollution qualities, and difficulty of disposal of
sewage produced;
new text end

new text begin (3) based on the cost of providing planning, administration, operation, maintenance,
acquisition, betterment, and debt service on a per parcel basis; or
new text end

new text begin (4) on any other equitable basis.
new text end

new text begin The authority in this subdivision is in addition to that in other provisions of this
article and the governing body of a local government unit may by resolution adopted
by a majority vote of the governing body employ any combination of tax levy, special
assessment, or charges to pay its allocated costs. The amounts levied or fixed to be
collected by any authorized means must be designed to approximate the actual allocated
costs, and may not greatly exceed the actual allocated costs, together with costs of
financing and collection. Any unpaid special charge may be certified to the Douglas
County auditor by the township clerk, specifying the amount of the unpaid special charge,
the parcel number of the property being charged, the interest rate, and the number of equal
installments. The amount so certified shall be spread upon the tax rolls against each
listed parcel in the same manner as other taxes, and collected by the county auditor and
paid to the government unit along with other taxes or as a special assessment against the
property, as provided in Minnesota Statutes, section 429.101. Nothing in this law shall be
construed in any way to interfere with the authority of the governing body of the local
governmental unit to employ the special charges.
new text end

Sec. 3.

Laws 2003, chapter 127, article 9, section 9, is amended by adding a
subdivision to read:


new text begin Subd. 9. new text end

new text begin Town board may levy. new text end

new text begin For the purposes of section 9, "governing body"
for a town means the town board of supervisors.
new text end

Sec. 4. new text beginCENTRAL LAKES REGION SANITARY DISTRICT; DISSOLUTION.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section and section 5 apply to the Central Lakes
Region Sanitary District established under Laws 2003, chapter 127, article 9, as amended.
The definitions contained in Laws 2003, chapter 127, article 9, as amended, apply to
this section and section 5.
new text end

new text begin Subd. 2. new text end

new text begin Resolution of intent to dissolve; publication; cessation of business. new text end

new text begin In
order to begin the process of dissolution, the board must adopt a resolution of intent to
dissolve the district by a vote of two-thirds of the board. At a minimum, the resolution
must provide a statement of facts and circumstances justifying the dissolution and a plan
for concluding the district's affairs. The board must publish the resolution of intent
to dissolve in at least one newspaper of general circulation within the district once per
week for two successive weeks after adoption of the resolution. The board must provide
a copy of the resolution of intent to dissolve to each property owner in the district. The
publication and mailing must be evidenced by affidavits. After adoption of the resolution,
publication, and mailing of notices, the district must cease business except as necessary
to conclude the district's affairs.
new text end

Sec. 5. new text beginCENTRAL LAKES REGION SANITARY SEWER BOARD;
RESOLUTION OF DISSOLUTION; DISPOSITION OF ASSETS AND CLAIMS.
new text end

new text begin Subdivision 1. new text end

new text begin Winding up of district. new text end

new text begin After a resolution of intent to dissolve has
been adopted and notice provided as required under section 4, the board shall proceed as
soon as possible with the actions required in this section.
new text end

new text begin Subd. 2. new text end

new text begin Collection, payment. new text end

new text begin The board shall proceed as soon as possible to:
new text end

new text begin (1) collect or make provision for the collection of all known debts, including
unallocated costs due or owing to the district;
new text end

new text begin (2) pay or make provision for the payment of all known debts, obligations, and
liabilities of the district according to their priorities; and
new text end

new text begin (3) give notice to creditors and claimants of the district's intent to dissolve as
provided in subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Valuation, disposition of assets. new text end

new text begin The board (1) shall identify all assets
and property of the district whether tangible or intangible, real or personal, and establish,
where possible, a value of the assets and property, and (2) may sell, lease, transfer, or
otherwise dispose of all or substantially all of the property and assets of the district.
Disposition of assets may be made either to pay all or portions of debts or obligations or to
preserve the interest of a local unit of government in the asset.
new text end

new text begin Subd. 4. new text end

new text begin Distribution. new text end

new text begin All tangible or intangible property, including money,
remaining after the discharge of, or after making adequate provision for the discharge of,
the debts, obligations, and liabilities of the district must be distributed to the townships on
an equitable basis established by the board.
new text end

new text begin Subd. 5. new text end

new text begin Notice to creditors and claimants. new text end

new text begin The district shall give notice of
the resolution to each creditor of and claimant against the district known or unknown,
present or future, and contingent or noncontingent. Notice to creditors and claimants
must be given by publishing the notice once each week for four successive weeks in a
legal newspaper of Douglas County and by giving written notice to known creditors
and claimants. The notice must contain:
new text end

new text begin (1) a statement that the district is in the process of dissolving;
new text end

new text begin (2) a statement that the district has properly adopted and noticed a resolution of
intent to dissolve;
new text end

new text begin (3) a statement identifying the location at which a copy of the executed resolution of
intent to dissolve may be inspected;
new text end

new text begin (4) the address of the office to which written claims against the district must be
presented; and
new text end

new text begin (5) the date by which all the claims must be received, which is the later of 60 days
after published notice or, with respect to a particular known creditor or claimant, 60 days
after the date on which written notice was given to that creditor or claimant. Published
notice is deemed given on the date of first publication for the purpose of determining
this date.
new text end

new text begin Subd. 6. new text end

new text begin Claims. new text end

new text begin (a) The district has 40 days from the receipt of each claim to
accept or reject the claim by giving written notice to the person submitting it. A claim
not expressly rejected in this manner is deemed accepted. Claims must contain sufficient
detail for the district to determine the nature, amount, and validity of the claim. The
district may, within the 40 days from receipt of each claim, request additional information
from the claimant regarding the claim. A request for additional information shall restart
the timeline for submission, acceptance, or rejection.
new text end

new text begin (b) A creditor or claimant whose claim is rejected by the district has 60 days from
the date of rejection to pursue any other remedies with respect to the claim.
new text end

new text begin (c) A creditor or claimant who fails to file a claim on or before the date set forth in
the notice is barred from suing on that claim or otherwise realizing upon or enforcing it
against the district or any participating township.
new text end

new text begin (d) A creditor or claimant whose claim is rejected by the district under paragraph
(b) is barred from suing on that claim or otherwise realizing upon or enforcing it against
the district or any participating township, if the creditor or claimant does not initiate
legal, administrative, or arbitration proceedings with respect to the claim within the time
provided in paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin Resolution of dissolution; when filed; contents; effective date. new text end

new text begin (a) The
resolution of dissolution must be adopted by a vote of at least two-thirds of the members
of the board. The resolution must be filed with the secretary of state after: (1) the 60-day
period for submission of claims after notice has expired and the payment of claims of all
creditors and claimants filing a claim within that period has been made or provided for; or
(2) the period for bringing action on rejected claims has expired and there are no pending
judicial, administrative, or arbitration proceedings by or against the district commenced
within the time provided.
new text end

new text begin (b) The resolution of dissolution must state, at a minimum:
new text end

new text begin (1) the last date on which the notice was given and:
new text end

new text begin (i) that the payment of all creditors and claimants filing a claim within the 60-day
period has been made or provided for; or
new text end

new text begin (ii) the period for bringing action on rejected claims has expired;
new text end

new text begin (2) that the remaining property, assets, and claims of the district have been distributed
to the townships, pro rata, based upon the tax capacity of each township's territory within
the district, or that adequate provision has been made for that distribution; and
new text end

new text begin (3) that there are no pending legal, administrative, or arbitration proceedings by or
against the district commenced within the time provided or that adequate provision has
been made for the satisfaction of any judgment, order, or decree that may be entered
against it in a pending proceeding.
new text end

new text begin (c) When the resolution of dissolution has been filed with the secretary of state,
the district is dissolved.
new text end

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin This act applies to the townships of Brandon, Carlos, LaGrand, Leaf Valley, Miltona,
and Moe, all in Douglas County. This act is effective the day after all of the townships
listed have completed local approval as provided in Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end