1.1             CONFERENCE COMMITTEE REPORT ON S.F. NO. 3134 
  1.2                          A bill for an act 
  1.3             relating to environment; clarifying individual sewage 
  1.4             treatment classification; abolishing the waste tire 
  1.5             grant and loan program; requiring a water quality 
  1.6             permit progress report; establishing the central iron 
  1.7             range sanitary sewer district; amending Minnesota 
  1.8             Statutes 2000, section 115.55, by adding a 
  1.9             subdivision; Minnesota Statutes 2001 Supplement, 
  1.10            section 115A.912, subdivision 1; repealing Minnesota 
  1.11            Statutes 2000, section 115A.913; Minnesota Rules, 
  1.12            parts 9220.0130, subpart 2, item H; 9220.0170; 
  1.13            9220.0180; 9220.0800; 9220.0805; 9220.0810; 9220.0815; 
  1.14            9220.0820; 9220.0825; 9220.0830; 9220.0835; 9220.0900; 
  1.15            9220.0905; 9220.0910; 9220.0915; 9220.0920; 9220.0925; 
  1.16            9220.0930; 9220.0935. 
  1.17                                                 May 14, 2002
  1.18  The Honorable Don Samuelson 
  1.19  President of the Senate
  1.21  The Honorable Steve Sviggum 
  1.22  Speaker of the House of Representatives
  1.24     We, the undersigned conferees for S.F. No. 3134, report 
  1.25  that we have agreed upon the items in dispute and recommend as 
  1.26  follows: 
  1.27     
  1.28     That the House recede from its amendments and that S.F. No. 
  1.29  3134 be further amended as follows: 
  1.30     Delete everything after the enacting clause and insert: 
  1.31                             "ARTICLE 1
  1.32                      POLLUTION CONTROL AGENCY
  1.33     Section 1.  Minnesota Statutes 2000, section 115.55, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 9.  [SYSTEM CLASSIFICATION.] The agency is not 
  2.3   required to add, remove, or reclassify individual sewage 
  2.4   treatment system technologies, designs, or system components 
  2.5   through rulemaking or pursuant to existing rules until July 1, 
  2.6   2003.  The agency is not required to review, assess, advise, or 
  2.7   make regulatory determinations on an individual sewage treatment 
  2.8   system technology, design, or system component during this 
  2.9   period.  Chambered systems, as defined in Minnesota Rules, part 
  2.10  7080.0020, that are installed before July 1, 2003, with smaller 
  2.11  than standard soil sizing, but which otherwise conform with 
  2.12  Minnesota Rules, part 7080.0178, are not required to have flow 
  2.13  measuring devices installed and monitored unless required by 
  2.14  local ordinance. 
  2.15     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.16  115A.912, subdivision 1, is amended to read: 
  2.17     Subdivision 1.  [PURPOSE.] Money appropriated to the agency 
  2.18  for waste tire management may be spent for regulation of 
  2.19  permitted waste tire facilities, research and studies to 
  2.20  determine the technical and economic feasibility of uses for 
  2.21  tire derived products, and public education on waste tire 
  2.22  management, and grants and loans under section 115A.913. 
  2.23     Sec. 3.  Minnesota Statutes 2000, section 115A.9561, 
  2.24  subdivision 2, is amended to read: 
  2.25     Subd. 2.  [RECYCLING REQUIRED.] (a) Major appliances must 
  2.26  be recycled or reused.  Each county shall ensure that its 
  2.27  households have the opportunity to recycle used major 
  2.28  appliances.  For the purposes of this section, recycling 
  2.29  includes: 
  2.30     (1) the removal of capacitors that may contain PCBs; 
  2.31     (2) the removal of ballasts that may contain PCBs; 
  2.32     (3) the removal of chlorofluorocarbon refrigerant gas; and 
  2.33     (4) the recycling or reuse of the metals, including mercury.
  2.34     (b) To ensure that the materials removed from a major 
  2.35  appliance are not introduced into the environment, an activity 
  2.36  described in paragraph (a), clauses (1) to (3), must be 
  3.1   conducted in a closed facility if the activity is conducted 
  3.2   within 500 feet from the ordinary high water level of a 
  3.3   waterbasin that is a public water, as those terms are described 
  3.4   in section 103G.005, or of a watercourse identified by the 
  3.5   public waters inventory under section 103G.201. 
  3.6      Sec. 4.  Laws 2002, chapter 293, is amended by adding a 
  3.7   section to read: 
  3.8      Sec. 2.  [EFFECTIVE DATE.] 
  3.9      Section 1 is effective on the day following final enactment.
  3.10     Sec. 5.  [WATER QUALITY PERMIT PROGRESS REPORT.] 
  3.11     By January 15, 2003, the commissioner of the pollution 
  3.12  control agency must submit a report to the chairs of the 
  3.13  legislative committees with jurisdiction over environmental 
  3.14  policy and finance regarding the agency's water quality 
  3.15  permits.  The report must address: 
  3.16     (1) the status of the agency's permit backlog, including, 
  3.17  but not limited to, the number of facilities operating under 
  3.18  expired permits, the number of on-site inspections, and the 
  3.19  number of facilities in significant noncompliance; 
  3.20     (2) implementation of improvements in the permitting 
  3.21  process and any resulting effects on staff for nonpoint source 
  3.22  programs; and 
  3.23     (3) any legislative and administrative changes needed for 
  3.24  the phosphorus and mercury components of the permits. 
  3.25     Sec. 6.  [REPEALER.] 
  3.26     Minnesota Statutes 2000, section 115A.913; and Minnesota 
  3.27  Rules, parts 9220.0130, subpart 2, item H; 9220.0170; 9220.0180; 
  3.28  9220.0800; 9220.0805; 9220.0810; 9220.0815; 9220.0820; 
  3.29  9220.0825; 9220.0830; 9220.0835; 9220.0900; 9220.0905; 
  3.30  9220.0910; 9220.0915; 9220.0920; 9220.0925; 9220.0930; and 
  3.31  9220.0935, are repealed. 
  3.32     Sec. 7.  [EFFECTIVE DATE.] 
  3.33     Sections 1, 2, and 6 are effective the day following final 
  3.34  enactment.  Section 4 is effective retroactively on March 27, 
  3.35  2002. 
  3.36                             ARTICLE 2
  4.1              CENTRAL IRON RANGE SANITARY SEWER DISTRICT
  4.2      Section 1.  [CENTRAL IRON RANGE SANITARY SEWER DISTRICT; 
  4.3   DEFINITIONS.] 
  4.4      Subdivision 1.  [APPLICATION.] In sections 1 to 19, the 
  4.5   definitions in this section apply. 
  4.6      Subd. 2.  [DISTRICT.] "Central iron range sanitary sewer 
  4.7   district" and "district" mean the area over which the central 
  4.8   iron range sanitary sewer board has jurisdiction, which includes 
  4.9   the area within the cities of Hibbing, Chisholm, and Buhl; the 
  4.10  townships of Kinney, Balkan, and Great Scott; and the territory 
  4.11  occupied by Ironworld.  The district shall precisely describe 
  4.12  the area over which it has jurisdiction by a metes and bounds 
  4.13  description in the comprehensive plan adopted pursuant to 
  4.14  section 5. 
  4.15     Subd. 3.  [BOARD.] "Sanitary sewer board" or "board" means 
  4.16  the central iron range sanitary sewer board established for the 
  4.17  district as provided in subdivision 2. 
  4.18     Subd. 4.  [PERSON.] "Person" means an individual, 
  4.19  partnership, corporation, limited liability company, 
  4.20  cooperative, or other organization or entity, public or private. 
  4.21     Subd. 5.  [LOCAL GOVERNMENTAL UNITS.] "Local governmental 
  4.22  units" or "governmental units" means the iron range resources 
  4.23  and rehabilitation board, the cities of Hibbing, Chisholm, and 
  4.24  Buhl, and the townships of Kinney, Balkan, and Great Scott. 
  4.25     Subd. 6.  [ACQUISITION; BETTERMENT.] "Acquisition" and 
  4.26  "betterment" have the meanings given in Minnesota Statutes, 
  4.27  section 475.51. 
  4.28     Subd. 7.  [AGENCY.] "Agency" means the Minnesota pollution 
  4.29  control agency created in Minnesota Statutes, section 116.02. 
  4.30     Subd. 8.  [SEWAGE.] "Sewage" means all liquid or 
  4.31  water-carried waste products from whatever sources derived, 
  4.32  together with any groundwater infiltration and surface water as 
  4.33  may be present. 
  4.34     Subd. 9.  [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of 
  4.35  water" and "sewer system" have the meanings given in Minnesota 
  4.36  Statutes, section 115.01. 
  5.1      Subd. 10.  [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment 
  5.2   works" and "disposal system" have the meanings given in 
  5.3   Minnesota Statutes, section 115.01. 
  5.4      Subd. 11.  [INTERCEPTOR.] "Interceptor" means a sewer and 
  5.5   its necessary appurtenances, including but not limited to mains, 
  5.6   pumping stations, and sewage flow-regulating and flow-measuring 
  5.7   stations, that is: 
  5.8      (1) designed for or used to conduct sewage originating in 
  5.9   more than one local governmental unit; 
  5.10     (2) designed or used to conduct all or substantially all 
  5.11  the sewage originating in a single local governmental unit from 
  5.12  a point of collection in that unit to an interceptor or 
  5.13  treatment works outside that unit; or 
  5.14     (3) determined by the board to be a major collector of 
  5.15  sewage used or designed to serve a substantial area in the 
  5.16  district. 
  5.17     Subd. 12.  [DISTRICT DISPOSAL SYSTEM.] "District disposal 
  5.18  system" means any and all interceptors or treatment works owned, 
  5.19  constructed, or operated by the board unless designated by the 
  5.20  board as local water and sanitary sewer facilities. 
  5.21     Subd. 13.  [MUNICIPALITY.] "Municipality" means any town or 
  5.22  home rule charter or statutory city. 
  5.23     Subd. 14.  [TOTAL COSTS.] "Total costs of acquisition and 
  5.24  betterment" and "costs of acquisition and betterment" mean all 
  5.25  acquisition and betterment expenses permitted to be financed out 
  5.26  of stopped bond proceeds issued in accordance with section 13, 
  5.27  whether or not the expenses are in fact financed out of the bond 
  5.28  proceeds. 
  5.29     Subd. 15.  [CURRENT COSTS.] "Current costs of acquisition, 
  5.30  betterment, and debt service" means interest and principal 
  5.31  estimated to be due during the budget year on bonds issued to 
  5.32  finance costs of acquisition and betterment and all other costs 
  5.33  of acquisition and betterment estimated to be paid during the 
  5.34  year from funds other than bond proceeds and federal or state 
  5.35  grants. 
  5.36     Subd. 16.  [RESIDENT.] "Resident" means the owner of a 
  6.1   dwelling located in the district and receiving water or sewer 
  6.2   service. 
  6.3      Sec. 2.  [SANITARY SEWER BOARD.] 
  6.4      Subdivision 1.  [ESTABLISHMENT.] A sanitary sewer district 
  6.5   is established in the cities of Hibbing, Chisholm, and Buhl; the 
  6.6   townships of Kinney, Balkan, and Great Scott; and the territory 
  6.7   occupied by Ironworld, to be known as the central iron range 
  6.8   sanitary sewer district.  The sewer district is under the 
  6.9   control and management of the central iron range sanitary sewer 
  6.10  board.  The board is established as a public corporation and 
  6.11  political subdivision of the state with perpetual succession and 
  6.12  all the rights, powers, privileges, immunities, and duties 
  6.13  granted to or imposed upon a municipal corporation, as provided 
  6.14  in sections 1 to 19.  
  6.15     Subd. 2.  [MEMBERS AND SELECTION.] The board is composed of 
  6.16  13 members selected as provided in this subdivision.  Each of 
  6.17  the town boards of the townships shall meet to appoint one 
  6.18  resident to the sewer board.  Four members must be selected by 
  6.19  the governing body of the city of Hibbing.  Three members must 
  6.20  be selected by the governing body of the city of Chisholm.  Two 
  6.21  members must be selected by the governing body of the city of 
  6.22  Buhl.  One member must be selected by the iron range resources 
  6.23  and rehabilitation board on behalf of Ironworld.  Each member 
  6.24  has one vote.  The first terms are as follows:  four for one 
  6.25  year, four for two years, and five for three years, fixed by lot 
  6.26  at the district's first meeting.  Thereafter, all terms are for 
  6.27  three years. 
  6.28     Subd. 3.  [TIME LIMITS FOR SELECTION.] The board members 
  6.29  must be selected as provided in subdivision 2 within 60 days 
  6.30  after sections 1 to 19 are effective.  The successor to each 
  6.31  board member must be selected at any time within 60 days before 
  6.32  the expiration of the member's term in the same manner as the 
  6.33  predecessor was selected.  A vacancy on the board must be filled 
  6.34  within 60 days after it occurs. 
  6.35     Subd. 4.  [VACANCIES.] If the office of a board member 
  6.36  becomes vacant, the vacancy must be filled for the unexpired 
  7.1   term in the manner provided for selection of the member who 
  7.2   vacated the office.  The office is considered vacant under the 
  7.3   conditions specified in Minnesota Statutes, section 351.02. 
  7.4      Subd. 5.  [REMOVAL.] A board member may be removed by the 
  7.5   unanimous vote of the governing body appointing the member, with 
  7.6   or without cause, or for malfeasance or nonfeasance in the 
  7.7   performance of official duties as provided by Minnesota 
  7.8   Statutes, sections 351.14 to 351.23. 
  7.9      Subd. 6.  [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 
  7.10  certificate of selection of every board member selected under 
  7.11  subdivision 2 stating the term for which selected, must be made 
  7.12  by the respective town clerks.  The certificates, with the 
  7.13  approval appended by other authority, if required, must be filed 
  7.14  with the secretary of state.  Counterparts of the certificates 
  7.15  must be furnished to the board member and the secretary of the 
  7.16  board.  Each member shall qualify by taking and subscribing the 
  7.17  oath of office prescribed by the Minnesota Constitution, article 
  7.18  V, section 6.  The oath, duly certified by the official 
  7.19  administering the same, must be filed with the secretary of 
  7.20  state and the secretary of the board. 
  7.21     Subd. 7.  [BOARD MEMBERS' COMPENSATION.] Each board member, 
  7.22  except the chair, may be paid a per diem compensation in 
  7.23  accordance with the board's bylaws for meetings and for other 
  7.24  services as are specifically authorized by the board, not to 
  7.25  exceed the per diem amount under Minnesota Statutes, section 
  7.26  15.0575, subdivision 3, and not to exceed $1,000 in any one year.
  7.27  The chair may be paid a per diem compensation in accordance with 
  7.28  the board's bylaws for meetings and for other services 
  7.29  specifically authorized by the board, not to exceed the per diem 
  7.30  amount under Minnesota Statutes, section 15.0575, subdivision 3, 
  7.31  and not to exceed $1,500 in any one year.  All members of the 
  7.32  board must be reimbursed for all reasonable and necessary 
  7.33  expenses actually incurred in the performance of duties. 
  7.34     Sec. 3.  [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION 
  7.35  OF BOARD.] 
  7.36     Subdivision 1.  [ORGANIZATION; OFFICERS; MEETINGS; 
  8.1   SEAL.] After the selection and qualification of all board 
  8.2   members, the board must meet to organize the board at the call 
  8.3   of any two board members, upon seven days' notice by registered 
  8.4   mail to the remaining board members at a time and place within 
  8.5   the district specified in the notice.  A majority of the members 
  8.6   is a quorum at that meeting and all other meetings of the board, 
  8.7   but a lesser number may meet and adjourn from time to time and 
  8.8   compel the attendance of absent members.  At the first meeting 
  8.9   the board shall select its officers and conduct other 
  8.10  organizational business as may be necessary.  Thereafter the 
  8.11  board shall meet regularly at the time and place that the board 
  8.12  designates by resolution.  Special meetings may be held at any 
  8.13  time upon call of the chair or any two members, upon written 
  8.14  notice sent by mail to each member at least three days before 
  8.15  the meeting, or upon other notice as the board by resolution may 
  8.16  provide, or without notice if each member is present or files 
  8.17  with the secretary a written consent to the meeting either 
  8.18  before or after the meeting.  Except as otherwise provided in 
  8.19  sections 1 to 19, any action within the authority of the board 
  8.20  may be taken by the affirmative vote of a majority of the board 
  8.21  and may be taken by regular or adjourned regular meeting or at a 
  8.22  duly held special meeting, but in any case only if a quorum is 
  8.23  present.  Meetings of the board must be open to the public.  The 
  8.24  board may adopt a seal, which must be officially and judicially 
  8.25  noticed, to authenticate instruments executed by its authority, 
  8.26  but omission of the seal does not affect the validity of any 
  8.27  instrument. 
  8.28     Subd. 2.  [CHAIR.] The board shall elect a chair from its 
  8.29  membership.  The term of the first chair of the board expires on 
  8.30  January 1, 2004, and the terms of successor chairs expire on 
  8.31  January 1 of each succeeding year.  The chair shall preside at 
  8.32  all meetings of the board, if present, and shall perform all 
  8.33  other duties and functions usually incumbent upon such an 
  8.34  officer, and all administrative functions assigned to the chair 
  8.35  by the board.  The board shall elect a vice chair from its 
  8.36  membership to act for the chair during temporary absence or 
  9.1   disability. 
  9.2      Subd. 3.  [SECRETARY AND TREASURER.] The board shall select 
  9.3   persons who may, but need not be, members of the board, to act 
  9.4   as its secretary and treasurer.  The two offices may be combined.
  9.5   The secretary and treasurer shall hold office at the pleasure of 
  9.6   the board, subject to the terms of any contract of employment 
  9.7   that the board may enter into with the secretary or treasurer.  
  9.8   The secretary shall record the minutes of all meetings of the 
  9.9   board, and be the custodian of all books and records of the 
  9.10  board except those that the board entrusts to the custody of a 
  9.11  designated employee.  The treasurer is the custodian of all 
  9.12  money received by the board except as the board otherwise 
  9.13  entrusts to the custody of a designated employee.  The board may 
  9.14  appoint a deputy to perform any and all functions of either the 
  9.15  secretary or the treasurer.  A secretary or treasurer who is not 
  9.16  a member of the board or a deputy of either does not have the 
  9.17  right to vote. 
  9.18     Subd. 4.  [PUBLIC EMPLOYEES.] The executive director and 
  9.19  other persons employed by the district are public employees and 
  9.20  have all the rights and duties conferred on public employees 
  9.21  under Minnesota Statutes, sections 179A.01 to 179A.25.  The 
  9.22  board may elect to have employees become members of either the 
  9.23  public employees retirement association or the Minnesota state 
  9.24  retirement system.  The compensation and conditions of 
  9.25  employment of the employees must be governed by rules applicable 
  9.26  to state employees in the classified service and to the 
  9.27  provisions of Minnesota Statutes, chapter 15A. 
  9.28     Subd. 5.  [PROCEDURES.] The board shall adopt resolutions 
  9.29  or bylaws establishing procedures for board action, personnel 
  9.30  administration, keeping records, approving claims, authorizing 
  9.31  or making disbursements, safekeeping funds, and auditing all 
  9.32  financial operations of the board. 
  9.33     Subd. 6.  [SURETY BONDS AND INSURANCE.] The board may 
  9.34  procure surety bonds for its officers and employees, in amounts 
  9.35  deemed necessary to ensure proper performance of their duties 
  9.36  and proper accounting for funds in their custody.  It may 
 10.1   procure insurance against risks to property and liability of the 
 10.2   board and its officers, agents, and employees for personal 
 10.3   injuries or death and property damage and destruction, in 
 10.4   amounts deemed necessary or desirable, with the force and effect 
 10.5   stated in Minnesota Statutes, chapter 466. 
 10.6      Sec. 4.  [GENERAL POWERS OF BOARD.] 
 10.7      Subdivision 1.  [SCOPE.] The board has all powers necessary 
 10.8   or convenient to discharge the duties imposed upon it by law.  
 10.9   The powers include those specified in this section, but the 
 10.10  express grant or enumeration of powers does not limit the 
 10.11  generality or scope of the grant of powers contained in this 
 10.12  subdivision. 
 10.13     Subd. 2.  [SUIT.] The board may sue or be sued. 
 10.14     Subd. 3.  [CONTRACT.] The board may enter into any contract 
 10.15  necessary or proper for the exercise of its powers or the 
 10.16  accomplishment of its purposes. 
 10.17     Subd. 4.  [GIFTS, GRANTS, LOANS.] The board may accept 
 10.18  gifts, apply for and accept grants or loans of money or other 
 10.19  property from the United States, the state, or any person for 
 10.20  any of its purposes, enter into any agreement required in 
 10.21  connection with them, and hold, use, and dispose of the money or 
 10.22  property in accordance with the terms of the gift, grant, loan, 
 10.23  or agreement relating to it.  With respect to loans or grants of 
 10.24  funds or real or personal property or other assistance from any 
 10.25  state or federal government or its agency or instrumentality, 
 10.26  the board may contract to do and perform all acts and things 
 10.27  required as a condition or consideration for the gift, grant, or 
 10.28  loan pursuant to state or federal law or regulations, whether or 
 10.29  not included among the powers expressly granted to the board in 
 10.30  sections 1 to 19.  
 10.31     Subd. 5.  [COOPERATIVE ACTION.] The board may act under 
 10.32  Minnesota Statutes, section 471.59, or any other appropriate law 
 10.33  providing for joint or cooperative action between governmental 
 10.34  units. 
 10.35     Subd. 6.  [STUDIES AND INVESTIGATIONS.] The board may 
 10.36  conduct research studies and programs, collect and analyze data, 
 11.1   prepare reports, maps, charts, and tables, and conduct all 
 11.2   necessary hearings and investigations in connection with the 
 11.3   design, construction, and operation of the district disposal 
 11.4   system. 
 11.5      Subd. 7.  [EMPLOYEES, TERMS.] The board may employ on terms 
 11.6   it deems advisable, persons or firms performing engineering, 
 11.7   legal, or other services of a professional nature; require any 
 11.8   employee to obtain and file with it an individual bond or 
 11.9   fidelity insurance policy; and procure insurance in amounts it 
 11.10  deems necessary against liability of the board or its officers 
 11.11  or both, for personal injury or death and property damage or 
 11.12  destruction, with the force and effect stated in Minnesota 
 11.13  Statutes, chapter 466, and against risks of damage to or 
 11.14  destruction of any of its facilities, equipment, or other 
 11.15  property as it deems necessary. 
 11.16     Subd. 8.  [PROPERTY RIGHTS, POWERS.] The board may acquire 
 11.17  by purchase, lease, condemnation, gift, or grant, any real or 
 11.18  personal property including positive and negative easements and 
 11.19  water and air rights, and it may construct, enlarge, improve, 
 11.20  replace, repair, maintain, and operate any interceptor, 
 11.21  treatment works, or water facility determined to be necessary or 
 11.22  convenient for the collection and disposal of sewage in the 
 11.23  district.  Any local governmental unit and the commissioners of 
 11.24  transportation and natural resources are authorized to convey to 
 11.25  or permit the use of any of the above-mentioned facilities owned 
 11.26  or controlled by it, by the board, subject to the rights of the 
 11.27  holders of any bonds issued with respect to those facilities, 
 11.28  with or without compensation, without an election or approval by 
 11.29  any other governmental unit or agency.  All powers conferred by 
 11.30  this subdivision may be exercised both within or without the 
 11.31  district as may be necessary for the exercise by the board of 
 11.32  its powers or the accomplishment of its purposes.  The board may 
 11.33  hold, lease, convey, or otherwise dispose of the above-mentioned 
 11.34  property for its purposes upon the terms and in the manner it 
 11.35  deems advisable.  Unless otherwise provided, the right to 
 11.36  acquire lands and property rights by condemnation may be 
 12.1   exercised only in accordance with Minnesota Statutes, sections 
 12.2   117.011 to 117.232, and applies to any property or interest in 
 12.3   the property owned by any local governmental unit.  Property 
 12.4   devoted to an actual public use at the time, or held to be 
 12.5   devoted to such a use within a reasonable time, must not be so 
 12.6   acquired unless a court of competent jurisdiction determines 
 12.7   that the use proposed by the board is paramount to the existing 
 12.8   use.  Except in the case of property in actual public use, the 
 12.9   board may take possession of any property on which condemnation 
 12.10  proceedings have been commenced at any time after the issuance 
 12.11  of a court order appointing commissioners for its condemnation. 
 12.12     Subd. 9.  [RELATIONSHIP TO OTHER PROPERTIES.] The board may 
 12.13  construct or maintain its systems or facilities in, along, on, 
 12.14  under, over, or through public waters, streets, bridges, 
 12.15  viaducts, and other public rights-of-way without first obtaining 
 12.16  a franchise from a county or municipality having jurisdiction 
 12.17  over them.  However, the facilities must be constructed and 
 12.18  maintained in accordance with the ordinances and resolutions of 
 12.19  the county or municipality relating to constructing, installing, 
 12.20  and maintaining similar facilities on public properties and must 
 12.21  not unnecessarily obstruct the public use of those rights-of-way.
 12.22     Subd. 10.  [DISPOSAL OF PROPERTY.] The board may sell, 
 12.23  lease, or otherwise dispose of any real or personal property 
 12.24  acquired by it which is no longer required for accomplishment of 
 12.25  its purposes.  The property may be sold in the manner provided 
 12.26  by Minnesota Statutes, section 469.065, insofar as practical.  
 12.27  The board may give notice of sale as it deems appropriate.  When 
 12.28  the board determines that any property or any part of the 
 12.29  district disposal system acquired from a local governmental unit 
 12.30  without compensation is no longer required but is required as a 
 12.31  local facility by the governmental unit from which it was 
 12.32  acquired, the board may by resolution transfer it to that 
 12.33  governmental unit. 
 12.34     Subd. 11.  [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The 
 12.35  board may contract with the United States or any agency thereof, 
 12.36  any state or agency thereof, or any regional public planning 
 13.1   body in the state with jurisdiction over any part of the 
 13.2   district, or any other municipal or public corporation, or 
 13.3   governmental subdivision or agency or political subdivision in 
 13.4   any state, for the joint use of any facility owned by the board 
 13.5   or such entity, for the operation by that entity of any system 
 13.6   or facility of the board, or for the performance on the board's 
 13.7   behalf of any service, including but not limited to planning, on 
 13.8   terms as may be agreed upon by the contracting parties.  Unless 
 13.9   designated by the board as a local water and sanitary sewer 
 13.10  facility, any treatment works or interceptor jointly used, or 
 13.11  operated on behalf of the board, as provided in this 
 13.12  subdivision, is deemed to be operated by the board for purposes 
 13.13  of including those facilities in the district disposal system. 
 13.14     Sec. 5.  [COMPREHENSIVE PLAN.] 
 13.15     Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
 13.16  adopt a comprehensive plan for the collection, treatment, and 
 13.17  disposal of sewage in the district for a designated period the 
 13.18  board deems proper and reasonable.  The board shall prepare and 
 13.19  adopt subsequent comprehensive plans for the collection, 
 13.20  treatment, and disposal of sewage in the district for each 
 13.21  succeeding designated period as the board deems proper and 
 13.22  reasonable.  All comprehensive plans of the district shall be 
 13.23  subject to the planning and zoning authority of St. Louis county 
 13.24  and in conformance with all planning and zoning ordinances of 
 13.25  St. Louis county.  The first plan, as modified by the board, and 
 13.26  any subsequent plan shall take into account the preservation and 
 13.27  best and most economic use of water and other natural resources 
 13.28  in the area; the preservation, use, and potential for use of 
 13.29  lands adjoining waters of the state to be used for the disposal 
 13.30  of sewage; and the impact the disposal system will have on 
 13.31  present and future land use in the area affected.  In no case 
 13.32  shall the comprehensive plan provide for more than 325 
 13.33  connections to the disposal system.  All connections must be 
 13.34  charged a full assessment.  Connections made after the initial 
 13.35  assessment period ends must be charged an amount equal to the 
 13.36  initial assessment plus an adjustment for inflation and plus any 
 14.1   other charges determined to be reasonable and necessary by the 
 14.2   board.  Deferred assessments may be permitted, as provided for 
 14.3   in Minnesota Statutes, chapter 429.  The plans shall include the 
 14.4   general location of needed interceptors and treatment works, a 
 14.5   description of the area that is to be served by the various 
 14.6   interceptors and treatment works, a long-range capital 
 14.7   improvements program, and any other details as the board deems 
 14.8   appropriate.  In developing the plans, the board shall consult 
 14.9   with persons designated for the purpose by governing bodies of 
 14.10  any governmental unit within the district to represent the 
 14.11  entities and shall consider the data, resources, and input 
 14.12  offered to the board by the entities and any planning agency 
 14.13  acting on behalf of one or more of the entities.  Each plan, 
 14.14  when adopted, must be followed in the district and may be 
 14.15  revised as often as the board deems necessary. 
 14.16     Subd. 2.  [COMPREHENSIVE PLANS; HEARING.] Before adopting 
 14.17  any subsequent comprehensive plan, the board shall hold a public 
 14.18  hearing on the proposed plan at a time and place in the district 
 14.19  that it selects.  The hearing may be continued from time to 
 14.20  time.  Not less than 45 days before the hearing, the board shall 
 14.21  publish notice of the hearing in a newspaper having general 
 14.22  circulation in the district, stating the date, time, and place 
 14.23  of the hearing, and the place where the proposed plan may be 
 14.24  examined by any interested person.  At the hearing, all 
 14.25  interested persons must be permitted to present their views on 
 14.26  the plan. 
 14.27     Sec. 6.  [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL 
 14.28  ASSESSMENTS.] 
 14.29     The central iron range sanitary sewer board, in order to 
 14.30  implement the powers granted under sections 1 to 19 to 
 14.31  establish, maintain, and administer the central iron range 
 14.32  sanitary sewer district, may issue obligations and impose 
 14.33  special assessments against benefited property within the limits 
 14.34  of the district benefited by facilities constructed under 
 14.35  sections 1 to 19 in the manner provided for local governments by 
 14.36  Minnesota Statutes, chapter 429. 
 15.1      Sec. 7.  [SYSTEM EXPANSION; APPLICATION TO CITIES.] 
 15.2      The authority of the sanitary sewer board to establish a 
 15.3   sewer system under this section extends to areas within the 
 15.4   central iron range sanitary sewer district organized into cities 
 15.5   when requested by resolution of the governing body of the 
 15.6   affected city or when ordered by the Minnesota pollution control 
 15.7   agency after notice and hearing.  For the purpose of any 
 15.8   petition filed or special assessment levied with respect to any 
 15.9   system, the entire area to be served within a city must be 
 15.10  treated as if it were owned by a single person, and the 
 15.11  governing body shall exercise all the rights and be subject to 
 15.12  all the duties of an owner of the area, and shall have power to 
 15.13  provide for the payment of all special assessments and other 
 15.14  charges imposed upon the area with respect to the system by the 
 15.15  appropriation of money, the collection of service charges, or 
 15.16  the levy of taxes, which shall be subject to no limitation of 
 15.17  rate or amount. 
 15.18     Sec. 8.  [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 
 15.19     Subdivision 1.  [POWERS.] In addition to all other powers 
 15.20  conferred upon the board in sections 1 to 19, it has the powers 
 15.21  specified in this section. 
 15.22     Subd. 2.  [DISCHARGE OF TREATED SEWAGE.] The board may 
 15.23  discharge the effluent from any treatment works operated by it 
 15.24  into any waters of the state, subject to approval of the agency 
 15.25  if required and in accordance with any effluent or water quality 
 15.26  standards lawfully adopted by the agency, any interstate agency, 
 15.27  or any federal agency having jurisdiction. 
 15.28     Subd. 3.  [UTILIZATION OF DISTRICT SYSTEM.] The board may 
 15.29  require any person or local governmental unit to provide for the 
 15.30  discharge of any sewage, directly or indirectly, into the 
 15.31  district disposal system, or to connect any disposal system or a 
 15.32  part of it with the district disposal system wherever reasonable 
 15.33  opportunity for connection is provided; may regulate the manner 
 15.34  in which the connections are made; may require any person or 
 15.35  local governmental unit discharging sewage into the disposal 
 15.36  system to provide preliminary treatment for it; may prohibit the 
 16.1   discharge into the district disposal system of any substance 
 16.2   that it determines will or may be harmful to the system or any 
 16.3   persons operating it; and may require any local governmental 
 16.4   unit to discontinue the acquisition, betterment, or operation of 
 16.5   any facility for the unit's disposal system wherever and so far 
 16.6   as adequate service is or will be provided by the district 
 16.7   disposal system. 
 16.8      Subd. 4.  [SYSTEM OF COST RECOVERY TO COMPLY WITH 
 16.9   APPLICABLE REGULATIONS.] Any charges, connection fees, or other 
 16.10  cost-recovery techniques imposed on persons discharging sewage 
 16.11  directly or indirectly into the district disposal system must 
 16.12  comply with applicable state and federal law, including state 
 16.13  and federal regulations governing grant applications. 
 16.14     Sec. 9.  [BUDGET.] 
 16.15     (a) The board shall prepare and adopt, on or before October 
 16.16  1, 2002, and each year thereafter, a budget showing for the 
 16.17  following calendar year or other fiscal year determined by the 
 16.18  board, sometimes referred to in sections 1 to 19 as the budget 
 16.19  year, estimated receipts of money from all sources, including 
 16.20  but not limited to payments by each local governmental unit, 
 16.21  federal or state grants, taxes on property, and funds on hand at 
 16.22  the beginning of the year, and estimated expenditures for: 
 16.23     (1) costs of operation, administration, and maintenance of 
 16.24  the district disposal system; 
 16.25     (2) cost of acquisition and betterment of the district 
 16.26  disposal system; and 
 16.27     (3) debt service, including principal and interest, on 
 16.28  general obligation bonds and certificates issued pursuant to 
 16.29  section 13, and any money judgments entered by a court of 
 16.30  competent jurisdiction.  
 16.31     (b) Expenditures within these general categories, and any 
 16.32  other categories as the board may from time to time determine, 
 16.33  must be itemized in detail as the board prescribes.  The board 
 16.34  and its officers, agents, and employees must not spend money for 
 16.35  any purpose other than debt service without having set forth the 
 16.36  expense in the budget nor in excess of the amount set forth in 
 17.1   the budget for it.  No obligation to make an expenditure of the 
 17.2   above-mentioned type is enforceable except as the obligation of 
 17.3   the person or persons incurring it.  The board may amend the 
 17.4   budget at any time by transferring from one purpose to another 
 17.5   any sums except money for debt service and bond proceeds or by 
 17.6   increasing expenditures in any amount by which actual cash 
 17.7   receipts during the budget year exceed the total amounts 
 17.8   designated in the original budget.  The creation of any 
 17.9   obligation under section 13, or the receipt of any federal or 
 17.10  state grant is a sufficient budget designation of the proceeds 
 17.11  for the purpose for which it is authorized, and of the tax or 
 17.12  other revenue pledged to pay the obligation and interest on it, 
 17.13  whether or not specifically included in any annual budget. 
 17.14     Sec. 10.  [ALLOCATION OF COSTS.] 
 17.15     Subdivision 1.  [DEFINITION OF CURRENT COSTS.] The 
 17.16  estimated cost of administration, operation, maintenance, and 
 17.17  debt service of the district disposal system to be paid by the 
 17.18  board in each fiscal year and the estimated costs of acquisition 
 17.19  and betterment of the system that are to be paid during the year 
 17.20  from funds other than state or federal grants and bond proceeds 
 17.21  and all other previously unallocated payments made by the board 
 17.22  pursuant to sections 1 to 19 to be allocated in the fiscal year 
 17.23  are referred to as current costs and must be allocated by the 
 17.24  board as provided in subdivision 2 in the budget for that year. 
 17.25     Subd. 2.  [METHOD OF ALLOCATION OF CURRENT COSTS.] Current 
 17.26  costs must be allocated in the district on an equitable basis as 
 17.27  the board may determine by resolution to be in the best 
 17.28  interests of the district.  The adoption or revision of any 
 17.29  method of allocation used by the board must be by the 
 17.30  affirmative vote of at least two-thirds of the members of the 
 17.31  board. 
 17.32     Sec. 11.  [TAX LEVIES.] 
 17.33     To accomplish any duty imposed on it the board may, in 
 17.34  addition to the powers granted in sections 1 to 19 and in any 
 17.35  other law or charter, exercise the powers granted any 
 17.36  municipality by Minnesota Statutes, chapters 117, 412, 429, 475, 
 18.1   sections 115.46, 444.075, and 471.59, with respect to the area 
 18.2   in the district.  The board may levy taxes upon all taxable 
 18.3   property in the district for all or a part of the amount payable 
 18.4   to the board, pursuant to section 10, to be assessed and 
 18.5   extended as a tax upon that taxable property by the county 
 18.6   auditor for the next calendar year, free from any limit of rate 
 18.7   or amount imposed by law or charter.  The tax must be collected 
 18.8   and remitted in the same manner as other general taxes. 
 18.9      Sec. 12.  [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 
 18.10     Subdivision 1.  [PUBLIC HEARING REQUIREMENT ON SPECIFIC 
 18.11  PROJECT.] Before the board orders any project involving the 
 18.12  acquisition or betterment of any interceptor or treatment works, 
 18.13  all or a part of the cost of which will be allocated pursuant to 
 18.14  section 10 as current costs, the board must hold a public 
 18.15  hearing on the proposed project.  The hearing must be held 
 18.16  following two publications in a newspaper having general 
 18.17  circulation in the district, stating the time and place of the 
 18.18  hearing, the general nature and location of the project, the 
 18.19  estimated total cost of acquisition and betterment, that portion 
 18.20  of costs estimated to be paid out of federal and state grants, 
 18.21  and that portion of costs estimated to be allocated.  The 
 18.22  estimates must be the best available at the time of the meeting 
 18.23  and if costs exceed the estimate, the project cannot proceed 
 18.24  until an additional public hearing is held, with notice as 
 18.25  required at the initial meeting.  The two publications must be a 
 18.26  week apart and the hearing at least three days after the last 
 18.27  publication.  Not less than 45 days before the hearing, notice 
 18.28  of the hearing must also be mailed to each clerk of all local 
 18.29  governmental units in the district, but failure to give mailed 
 18.30  notice or any defects in the notice does not invalidate the 
 18.31  proceedings.  The project may include all or part of one or more 
 18.32  interceptors or treatment works.  A hearing must not be held on 
 18.33  a project unless the project is within the area covered by the 
 18.34  comprehensive plan adopted by the board under section 5, except 
 18.35  that the hearing may be held simultaneously with a hearing on a 
 18.36  comprehensive plan.  A hearing is not required with respect to a 
 19.1   project, no part of the costs of which are to be allocated as 
 19.2   the current costs of acquisition, betterment, and debt service. 
 19.3      Subd. 2.  [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 
 19.4   board proposes to assess against benefited property within the 
 19.5   district all or any part of the allocable costs of the project 
 19.6   as provided in subdivision 5, the board shall, not less than two 
 19.7   weeks before the hearing provided for in subdivision 1, cause 
 19.8   mailed notice of the hearing to be given to the owner of each 
 19.9   parcel within the area proposed to be specially assessed and 
 19.10  shall also give two weeks' published notice of the hearing.  The 
 19.11  notice of hearing must contain the same information provided in 
 19.12  the notice published by the board pursuant to subdivision 1, and 
 19.13  a description of the area proposed to be assessed.  For the 
 19.14  purpose of giving mailed notice, owners are those shown to be on 
 19.15  the records of the county auditor or, in any county where tax 
 19.16  statements are mailed by the county treasurer, on the records of 
 19.17  the county treasurer; but other appropriate records may be used 
 19.18  for this purpose.  For properties that are tax exempt or subject 
 19.19  to taxation on a gross earnings basis and not listed on the 
 19.20  records of the county auditor or the county treasurer, the 
 19.21  owners must be ascertained by any practicable means and mailed 
 19.22  notice given them as herein provided.  Failure to give mailed 
 19.23  notice or any defects in the notice does not invalidate the 
 19.24  proceedings of the board. 
 19.25     Subd. 3.  [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 
 19.26  adoption of the resolution calling for a hearing under this 
 19.27  section, the board shall secure from the district engineer or 
 19.28  some other competent person of the board's selection a report 
 19.29  advising it in a preliminary way as to whether the proposed 
 19.30  project is feasible and whether it should be made as proposed or 
 19.31  in connection with some other project and the estimated costs of 
 19.32  the project as recommended.  No error or omission in the report 
 19.33  invalidates the proceeding.  The board may also take other steps 
 19.34  before the hearing, as will in its judgment provide helpful 
 19.35  information in determining the desirability and feasibility of 
 19.36  the project, including but not limited to preparation of plans 
 20.1   and specifications and advertisement for bids on them.  The 
 20.2   hearing may be adjourned from time to time and a resolution 
 20.3   ordering the project may be adopted at any time within six 
 20.4   months after the date of hearing.  In ordering the project the 
 20.5   board may reduce but not increase the extent of the project as 
 20.6   stated in the notice of hearing and shall find that the project 
 20.7   as ordered is in accordance with the comprehensive plan and 
 20.8   program adopted by the board pursuant to section 5. 
 20.9      Subd. 4.  [EMERGENCY ACTION.] If the board by resolution 
 20.10  adopted by the affirmative vote of not less than two-thirds of 
 20.11  its members determines that an emergency exists requiring the 
 20.12  immediate purchase of materials or supplies or the making of 
 20.13  emergency repairs, it may order the purchase of those supplies 
 20.14  and materials and the making of the repairs before any hearing 
 20.15  required under this section.  The board must set as early a date 
 20.16  as practicable for the hearing at the time it declares the 
 20.17  emergency.  All other provisions of this section must be 
 20.18  followed in giving notice of and conducting the hearing.  
 20.19  Nothing in this subdivision prevents the board or its agents 
 20.20  from purchasing maintenance supplies or incurring maintenance 
 20.21  costs without regard to the requirements of this section. 
 20.22     Subd. 5.  [POWER OF THE BOARD TO SPECIALLY ASSESS.] The 
 20.23  board may specially assess all or any part of the costs of 
 20.24  acquisition and betterment as provided in this subdivision, of 
 20.25  any project ordered under this section.  The special assessments 
 20.26  must be levied in accordance with Minnesota Statutes, sections 
 20.27  429.051 to 429.081, except as otherwise provided in this 
 20.28  subdivision.  No other provisions of Minnesota Statutes, chapter 
 20.29  429, apply.  For purposes of levying the special assessments, 
 20.30  the hearing on the project required in subdivision 1 serves as 
 20.31  the hearing on the making of the original improvement provided 
 20.32  for by Minnesota Statutes, section 429.051.  The area assessed 
 20.33  may be less than but may not exceed the area proposed to be 
 20.34  assessed as stated in the notice of hearing on the project 
 20.35  provided for in subdivision 2. 
 20.36     Sec. 13.  [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 
 21.1      Subdivision 1.  [BUDGET ANTICIPATION CERTIFICATES OF 
 21.2   INDEBTEDNESS.] At any time after adoption of its annual budget 
 21.3   and in anticipation of the collection of tax and other revenues 
 21.4   estimated and set forth by the board in the budget, except in 
 21.5   the case of deficiency taxes levied under this subdivision and 
 21.6   taxes levied for the payment of certificates issued under 
 21.7   subdivision 2, the board may, by resolution, authorize the 
 21.8   issuance, negotiation, and sale, in accordance with subdivision 
 21.9   4 in the form and manner and upon terms it determines, of its 
 21.10  negotiable general obligation certificates of indebtedness in 
 21.11  aggregate principal amounts not exceeding 50 percent of the 
 21.12  total amount of tax collections and other revenues, and maturing 
 21.13  not later than three months after the close of the budget year 
 21.14  in which issued.  The proceeds of the sale of the certificates 
 21.15  must be used solely for the purposes for which the tax 
 21.16  collections and other revenues are to be expended under the 
 21.17  budget. 
 21.18     All the tax collections and other revenues included in the 
 21.19  budget for the budget year, after the expenditure of the tax 
 21.20  collections and other revenues in accordance with the budget, 
 21.21  must be irrevocably pledged and appropriated to a special fund 
 21.22  to pay the principal and interest on the certificates when due.  
 21.23  If for any reason the tax collections and other revenues are 
 21.24  insufficient to pay the certificates and interest when due, the 
 21.25  board shall levy a tax in the amount of the deficiency on all 
 21.26  taxable property in the district and shall appropriate this 
 21.27  amount when received to the special fund. 
 21.28     Subd. 2.  [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 
 21.29  any budget year the receipts of tax and other revenues should 
 21.30  for some unforeseen cause become insufficient to pay the board's 
 21.31  current expenses, or if any public emergency should subject it 
 21.32  to the necessity of making extraordinary expenditures, the board 
 21.33  may by resolution authorize the issuance, negotiation, and sale, 
 21.34  in accordance with subdivision 4 in the form and manner and upon 
 21.35  the terms and conditions it determines, of its negotiable 
 21.36  general obligation certificates of indebtedness in an amount 
 22.1   sufficient to meet the deficiency.  The board shall levy on all 
 22.2   taxable property in the district a tax sufficient to pay the 
 22.3   certificates and interest on the certificates and shall 
 22.4   appropriate all collections of the tax to a special fund created 
 22.5   for the payment of the certificates and the interest on them.  
 22.6   Certificates issued under this subdivision mature not later than 
 22.7   April 1 in the year following the year in which the tax is 
 22.8   collectible. 
 22.9      Subd. 3.  [GENERAL OBLIGATION BONDS.] The board may by 
 22.10  resolution authorize the issuance of general obligation bonds 
 22.11  for the acquisition or betterment of any part of the district 
 22.12  disposal system, including but without limitation the payment of 
 22.13  interest during construction and for a reasonable period 
 22.14  thereafter, or for the refunding of outstanding bonds, 
 22.15  certificates of indebtedness, or judgments.  The board shall 
 22.16  pledge its full faith and credit and taxing power for the 
 22.17  payment of the bonds and shall provide for the issuance and sale 
 22.18  and for the security of the bonds in the manner provided in 
 22.19  Minnesota Statutes, chapter 475.  The board has the same powers 
 22.20  and duties as a municipality issuing bonds under that law, 
 22.21  except that no election is required and the debt limitations of 
 22.22  Minnesota Statutes, chapter 475, do not apply to the bonds.  The 
 22.23  board may also pledge for the payment of the bonds and deduct 
 22.24  from the amount of any tax levy required under Minnesota 
 22.25  Statutes, section 475.61, subdivision 1, and any revenues 
 22.26  receivable under any state and federal grants anticipated by the 
 22.27  board and may covenant to refund the bonds if and when and to 
 22.28  the extent that for any reason the revenues, together with other 
 22.29  funds available and appropriated for that purpose, are not 
 22.30  sufficient to pay all principal and interest due or about to 
 22.31  become due, provided that the revenues have not been anticipated 
 22.32  by the issuance of certificates under subdivision 1. 
 22.33     Subd. 4.  [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.] 
 22.34  Certificates issued under subdivisions 1 and 2 may be issued and 
 22.35  sold by negotiation, without public sale, and may be sold at a 
 22.36  price equal to the percentage of the par value of the 
 23.1   certificates, plus accrued interest, and bearing interest at the 
 23.2   rate determined by the board.  An election is not required to 
 23.3   authorize the issuance of the certificates.  The certificates 
 23.4   must bear the same rate of interest after maturity as before and 
 23.5   the full faith and credit and taxing power of the board must be 
 23.6   pledged to the payment of the certificates. 
 23.7      Sec. 14.  [DEPOSITORIES.] 
 23.8      The board shall designate one or more national or state 
 23.9   banks, or trust companies authorized to do a banking business, 
 23.10  as official depositories for money of the board, and shall 
 23.11  require the treasurer to deposit all or a part of the money in 
 23.12  those institutions.  The designation must be in writing and set 
 23.13  forth all the terms and conditions upon which the deposits are 
 23.14  made, and must be signed by the chair and treasurer and made a 
 23.15  part of the minutes of the board. 
 23.16     Sec. 15.  [MONEY, ACCOUNTS, AND INVESTMENTS.] 
 23.17     Subdivision 1.  [RECEIPT AND APPLICATION.] Money received 
 23.18  by the board must be deposited or invested by the treasurer and 
 23.19  disposed of as the board may direct in accordance with its 
 23.20  budget; provided that any money that has been pledged or 
 23.21  dedicated by the board to the payment of obligations or interest 
 23.22  on the obligations or expenses incident thereto, or for any 
 23.23  other specific purpose authorized by law, must be paid by the 
 23.24  treasurer into the fund to which it has been pledged. 
 23.25     Subd. 2.  [FUNDS AND ACCOUNTS.] (a) The board's treasurer 
 23.26  shall establish funds and accounts as may be necessary or 
 23.27  convenient to handle the receipts and disbursements of the board 
 23.28  in an orderly fashion. 
 23.29     (b) The funds and accounts must be audited annually by a 
 23.30  certified public accountant at the expense of the district. 
 23.31     Subd. 3.  [DEPOSIT AND INVESTMENT.] The money on hand in 
 23.32  those funds and accounts may be deposited in the official 
 23.33  depositories of the board or invested as provided in this 
 23.34  subdivision.  Any amount not currently needed or required by law 
 23.35  to be kept in cash on deposit may be invested in obligations 
 23.36  authorized for the investment of municipal sinking funds by 
 24.1   Minnesota Statutes, chapter 118A.  The money may also be held 
 24.2   under certificates of deposit issued by any official depository 
 24.3   of the board. 
 24.4      Subd. 4.  [BOND PROCEEDS.] The use of proceeds of all bonds 
 24.5   issued by the board for the acquisition and betterment of the 
 24.6   district disposal system, and the use, other than investment, of 
 24.7   all money on hand in any sinking fund or funds of the board, is 
 24.8   governed by the provisions of Minnesota Statutes, chapter 475, 
 24.9   the provisions of sections 1 to 19, and the provisions of 
 24.10  resolutions authorizing the issuance of the bonds.  When 
 24.11  received, the bond proceeds must be transferred to the treasurer 
 24.12  of the board for safekeeping, investment, and payment of the 
 24.13  costs for which they were issued. 
 24.14     Subd. 5.  [AUDIT.] The board shall provide for and pay the 
 24.15  cost of an independent annual audit of its official books and 
 24.16  records by the state auditor or a public accountant authorized 
 24.17  to perform that function under Minnesota Statutes, chapter 6. 
 24.18     Sec. 16.  [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES 
 24.19  OUTSIDE THE JURISDICTION OF THE BOARD.] 
 24.20     (a) The board may contract with the United States or any 
 24.21  agency of the federal government, any state or its agency, or 
 24.22  any municipal or public corporation, governmental subdivision or 
 24.23  agency or political subdivision in any state, outside the 
 24.24  jurisdiction of the board, for furnishing services to those 
 24.25  entities, including but not limited to planning for and the 
 24.26  acquisition, betterment, operation, administration, and 
 24.27  maintenance of any or all interceptors, treatment works, and 
 24.28  local water and sanitary sewer facilities.  The board may 
 24.29  include as one of the terms of the contract that the entity must 
 24.30  pay to the board an amount agreed upon as a reasonable estimate 
 24.31  of the proportionate share properly allocable to the entity of 
 24.32  costs of acquisition, betterment, and debt service previously 
 24.33  allocated in the district.  When payments are made by entities 
 24.34  to the board, they must be applied in reduction of the total 
 24.35  amount of costs thereafter allocated in the district, on an 
 24.36  equitable basis as the board deems to be in the best interests 
 25.1   of the district, applying so far as practicable and appropriate 
 25.2   the criteria set forth in section 10, subdivision 2.  A 
 25.3   municipality in the state of Minnesota may enter into a contract 
 25.4   and perform all acts and things required as a condition or 
 25.5   consideration therefor consistent with the purposes of sections 
 25.6   1 to 19, whether or not included among the powers otherwise 
 25.7   granted to the municipality by law or charter. 
 25.8      (b) The board shall contract with a qualified entity to 
 25.9   make necessary inspections of the district facilities, and to 
 25.10  otherwise process or assist in processing any of the work of the 
 25.11  district. 
 25.12     Sec. 17.  [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES, 
 25.13  AND EQUIPMENT.] 
 25.14     When the board orders a project involving the acquisition 
 25.15  or betterment of a part of the district disposal system, it 
 25.16  shall cause plans and specifications of the project to be made, 
 25.17  or if previously made, to be modified, if necessary, and to be 
 25.18  approved by the agency if required, and after any required 
 25.19  approval by the agency, one or more contracts for work and 
 25.20  materials called for by the plans and specifications may be 
 25.21  awarded as provided in Minnesota Statutes, section 471.345. 
 25.22     Sec. 18.  [PROPERTY EXEMPT FROM TAXATION.] 
 25.23     Any properties, real or personal, owned, leased, 
 25.24  controlled, used, or occupied by the sanitary sewer board for 
 25.25  any purpose under sections 1 to 19 are declared to be acquired, 
 25.26  owned, leased, controlled, used, and occupied for public, 
 25.27  governmental, and municipal purposes, and are exempt from 
 25.28  taxation by the state or any political subdivision of the 
 25.29  state.  The properties are subject to special assessments levied 
 25.30  by a political subdivision for a local improvement in amounts 
 25.31  proportionate to and not exceeding the special benefit received 
 25.32  by the properties from the improvement. 
 25.33     Sec. 19.  [RELATION TO EXISTING LAWS.] 
 25.34     Sections 1 to 19 must be given full effect notwithstanding 
 25.35  the provisions of any law or charter inconsistent with sections 
 25.36  1 to 19.  The powers conferred on the board under sections 1 to 
 26.1   19 do not in any way diminish or supersede the powers conferred 
 26.2   on the agency by Minnesota Statutes, chapters 115 to 116. 
 26.3      Sec. 20.  [LOCAL APPROVAL.] 
 26.4      This article takes effect the day after each of the 
 26.5   governing bodies of each of the local governmental units has 
 26.6   complied with Minnesota Statutes, section 645.021, subdivision 
 26.7   3." 
 26.8      Delete the title and insert: 
 26.9                          "A bill for an act 
 26.10            relating to environment; clarifying individual sewage 
 26.11            treatment classification; regulating appliance 
 26.12            recycling activities; abolishing the waste tire grant 
 26.13            and loan program; requiring a water quality permit 
 26.14            progress report; establishing the central iron range 
 26.15            sanitary sewer district; amending Minnesota Statutes 
 26.16            2000, sections 115.55, by adding a subdivision; 
 26.17            115A.9561, subdivision 2; Minnesota Statutes 2001 
 26.18            Supplement, section 115A.912, subdivision 1; Laws 
 26.19            2002, chapter 293, by adding a section; repealing 
 26.20            Minnesota Statutes 2000, section 115A.913; Minnesota 
 26.21            Rules, parts 9220.0130, subpart 2, item H; 9220.0170; 
 26.22            9220.0180; 9220.0800; 9220.0805; 9220.0810; 9220.0815; 
 26.23            9220.0820; 9220.0825; 9220.0830; 9220.0835; 9220.0900; 
 26.24            9220.0905; 9220.0910; 9220.0915; 9220.0920; 9220.0925; 
 26.25            9220.0930; 9220.0935." 
 27.1      We request adoption of this report and repassage of the 
 27.2   bill. 
 27.5      Senate Conferees: 
 27.8   .........................     .........................
 27.9   Linda I. Higgins              David J. Tomassoni 
 27.12  .........................     
 27.13  Dennis R. Frederickson         
 27.18     House Conferees: 
 27.21  .........................     .........................
 27.22  Mark William Holsten          Harry Mares 
 27.25  .........................     
 27.26  Anthony Sertich