Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 443-H.F.No. 1782 
           An act relating to natural resources; enacting the 
          lake improvement district act; providing for the 
          creation, powers, and termination of lake improvement 
          districts; amending Minnesota Statutes 1984, sections 
          378.41; 378.42; 378.43; 378.44; 378.46; 378.47; 378.51;
          378.52; 378.54 378.55; 378.56; 378.57; and 459.20; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 378.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [378.401] [CITATION.] 
    Sections 2, 7, and 378.41 to 378.57 may be cited as the 
lake improvement district act. 
    Sec. 2.  [378.405] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 2, 7, and 378.41 to 378.57.  
    Subd. 2.  [BOARD.] "Board" means county board. 
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources. 
    Subd. 4.  [DISTRICT.] "District" means a lake improvement 
district. 
    Subd. 5.  [JOINT COUNTY AUTHORITY.] "Joint county authority"
means a joint county authority formed by county boards under 
section 378.44.  
    Subd. 6.  [PROPERTY OWNER.] "Property owner" means the 
owner of real property within the district or the buyer under 
contract for deed of property in the district.  
    Sec. 3.  Minnesota Statutes 1984, section 378.41, is 
amended to read: 
    378.41 [ESTABLISHMENT OF LAKE IMPROVEMENT DISTRICTS 
ADMINISTRATION BY COMMISSIONER.] 
    Subdivision 1.  [PURPOSE.] (a) In furtherance of the policy 
declared in section 378.31, the commissioner of natural 
resources shall coordinate and supervise a local-state program 
for the establishment of lake improvement districts by counties 
and cities for lakes located within their boundaries based on 
state guidelines and regulations and compatible with all state, 
regional, and local plans where such the plans exist. 
    (b) In administration of this program the commissioner of 
natural resources shall consult with and obtain advice from 
other state agencies on those aspects of the program for which 
the agencies have specific legislative authority including but 
not limited to the department of health and the pollution 
control agency. 
    Subd. 2.  [RULES.] The commissioner of natural resources, 
before April 1, 1979, shall promulgate adopt permanent and 
emergency rules pursuant to chapter 15 which to provide 
guidelines, criteria and standards for establishment of lake 
improvement districts by counties and cities. 
    Subd. 3.  In order to finance the development and 
implementation of programs for water and related land resources 
management pursuant to sections 378.31 to 378.32, the county 
board of any county may designate areas within the county, 
including bodies of water and related land areas, as lake 
improvement districts. 
    Sec. 4.  Minnesota Statutes 1984, section 378.42, is 
amended to read: 
    378.42 [CREATION INITIATION AND ESTABLISHMENT BY COUNTY 
BOARD.] 
    Subdivision 1.  [RESOLUTION OF INTENT.] The county board 
may establish initiate the establishment of a lake improvement 
district in a portion of the county by adoption of an 
appropriate resolution under this section.  The board must adopt 
a resolution declaring the intent of the board to establish a 
lake improvement district.  The resolution shall must: 
    (1) specify the territorial boundaries of the area 
district, which shall be encouraged to be as consistent as 
possible practical with natural hydrologic boundaries,; 
    (2) prescribe the type or types of water and related land 
resource management programs to be undertaken in the area, a 
statement of the means by which district; 
    (3) state how the programs will be financed, and a 
designation of; 
    (4) designate the county officer or agency who that will be 
responsible for supervising the programs; and 
    (5) set a date for a hearing on the resolution. 
    Subd. 1a.  [NOTICE TO TOWN BOARD.] The county board shall, 
at least 30 days before making an order establishing a lake 
improvement district, send the town board of a town wholly or 
partially within the boundaries of the proposed district a copy 
of the resolution to the town board and encourage the town board 
to respond to the proposed creation of the district.  
    Subd. 2.  [HEARING.] Before the adoption of such a 
resolution, The county board shall must hold a public hearing on 
the question of whether or not a lake improvement district shall 
should be established.  Before the date set for the hearing, any 
interested person may file his objections to the formation of 
such the district with the county auditor.  At the hearing, any 
interested person may offer objections, criticisms, or 
suggestions as to about the necessity of the proposed district 
as outlined and to the question of whether his how the person's 
property will be benefited or affected by the establishment of 
the district. 
    Subd. 3.  [ESTABLISHMENT.] Following the hearing, (a) The 
county board may establish a lake improvement district, by 
order, after making findings, if it appears to the board, after 
consideration of all testimony, determines that the: 
    (1) proposed district is necessary or that the public 
welfare will be promoted by the establishment of the district, 
that the; 
    (2) property to be included in the district will be 
benefited by the establishment thereof, and that the 
establishing the district; and 
    (3) formation of the proposed district will not cause or 
contribute to long range environmental pollution, the county 
board, by formal order, shall declare its findings, shall 
establish the boundaries of the district and shall declare the 
district organized and give it a corporate name by which it 
shall be known. 
    (b) The order establishing the district must state the 
board's findings and specify or prescribe those matters 
contained in subdivision 1, paragraphs (1) to (4). 
    Sec. 5.  Minnesota Statutes 1984, section 378.43, is 
amended to read: 
    378.43 [INITIATION BY PETITION FOR CREATION AND 
ESTABLISHMENT BY COUNTY BOARD.] 
    Subdivision 1.  [PETITION.] A petition signed by 51 percent 
of the resident owners as defined in section 112.35, subdivision 
21, within the proposed lake improvement district as specified 
in the petition shall be filed with the county clerk and 
addressed to the board requesting the establishment of a lake 
improvement district to develop and provide a program of water 
and related land resources management.  Governmental 
subdivisions, other than the state or federal governments, 
owning lands within the proposed district are eligible to sign 
the petition. 
    The petition shall set forth the following: 
    (1) The name of the proposed district; 
    (2) The necessity for the proposed district so that the 
public health or public welfare will be promoted by the 
establishment of the district and that the lands to be included 
therein will be benefited by the establishment or accomplish any 
of the purposes of a lake improvement district; 
    (3) The boundaries of the territory, which shall be as 
consistent as possible with natural hydrologic boundaries, to be 
included in the proposed district; 
    (4) A map of the proposed district; 
    (5) The number of managers proposed for the district. The 
managers shall not be less than three nor more than five and be 
selected from a list of ten nominees; and 
    (6) A request for the organization of the district as 
proposed. (a) A lake improvement district may be initiated by a 
petition to the county board.  The petition must state: 
    (1) the name of the proposed lake improvement district; 
    (2) the necessity of the proposed district to promote 
public health or public welfare; 
    (3) the benefits to property from the establishment of the 
lake improvement district; 
    (4) the boundaries of the proposed district which shall be 
encouraged to be as consistent as possible with natural 
hydrologic boundaries; 
    (5) a map of the proposed district; 
    (6) the number, from five to nine, of directors proposed 
for the district; and 
    (7) a request for establishing the district as proposed. 
    (b) A petition must be signed by 26 percent of the property 
owners within the proposed lake improvement district described 
in the petition.  Governmental subdivisions, other than the 
state or federal governments, owning lands within the proposed 
district are eligible to sign the petition. 
    (c) The petition must be filed with the county auditor and 
addressed to the board requesting the board to establish of a 
lake improvement district to develop and provide a program of 
water and related land resources management. 
    (d)  The county board shall, at least 30 days before it 
acts on a petition, send the town board of a town wholly or 
partially within the boundaries of a proposed district a copy of 
the petition submitted under subdivision 1 and encourage the 
town board to respond to the proposed creation of the district.  
    Subd. 2.  [HEARING.] Upon receipt of the petition, and 
verification of the signatures thereon by the county auditor, 
the county board shall, within 30 days following verification, 
hold a public hearing on the question of whether or not the 
requested lake improvement district shall be established.  After 
receiving the petition, the county auditor must verify the 
signatures and notify the county board.  Within 30 days after 
being notified of the petition, the county board must hold a 
public hearing on whether the requested lake improvement 
district should be established.  
    Subd. 3.  [ESTABLISHMENT.] Within 30 days following the 
holding of a public hearing the county board by resolution shall 
approve or disapprove the establishment of the requested lake 
improvement district and give it a corporate name by which it 
shall be known.  A resolution approving the creation of the lake 
improvement district may contain modifications of the area's 
boundaries, functions, financing, or organization from what was 
set forth in the petition.  Within 30 days after holding the 
public hearing, the county board shall, by order, establish or 
deny the establishment of the petitioned lake improvement 
district.  An order establishing a district must conform to 
section 7 and may modify the petition relating to the district's 
boundaries, functions, financing, or organization. 
    Sec. 6.  Minnesota Statutes 1984, section 378.44, is 
amended to read: 
    378.44 [JOINT ACTION ESTABLISHMENT OF A DISTRICT IN MORE 
THAN ONE COUNTY.] Where the natural hydrologic boundaries of an 
area a proposed district extend into more than one county, the 
county boards of the counties affected may form a joint county 
authority and establish and maintain a lake improvement district 
jointly or cooperatively as provided in section 471.59, either 
on their own motion or pursuant to petition.  The district may 
be initiated by the joint county authority in the same manner as 
a county board under section 378.42 or by petition to the 
affected county boards.  
    Sec. 7.  [378.455] [ORDER ESTABLISHING DISTRICT.] 
    An order by the county board or joint county authority 
establishing a district must state the:  
    (1) name of the district; 
    (2) boundaries of the district, which are encouraged to be 
as consistent as practical with natural hydrologic boundaries; 
    (3) water and related land resources management programs 
and services to be undertaken; 
    (4) manner of financing programs and services; and 
    (5) number, qualifications, terms of office, removal, and 
filling of vacancies of the board of directors.  
    Sec. 8.  Minnesota Statutes 1984, section 378.46, is 
amended to read: 
    378.46 [PUBLICATION AND EFFECTIVE DATE.] 
    Upon passage of a county board resolution authorizing the 
creation of a lake improvement district, the county board or 
boards shall cause the resolution to be published once in the 
official newspapers and filed with the secretary of state, the 
pollution control agency and the commissioner of natural 
resources.  The lake improvement district shall be deemed 
established 30 days after publication or at such later date as 
may be specified in the resolution.  
    Subdivision 1.  [PUBLICATION OF ESTABLISHMENT ORDER.] If a 
lake improvement district is established, the county board, or 
joint county authority issuing the order establishing the 
district, shall publish the order once in the official 
newspapers of counties where the district is located and file 
the order with the secretary of state, the pollution control 
agency, and the commissioner of natural resources. 
    Subd. 2.  [EFFECTIVE DATE.] Establishment of the lake 
improvement district is effective 30 days after publication or 
at a later date, if specified in the establishment order. 
    Sec. 9.  Minnesota Statutes 1984, section 378.47, is 
amended to read: 
    378.47 [REFERENDUM ON ESTABLISHMENT.] 
    Subdivision 1.  [PETITION.] Upon receipt of a petition 
signed by twenty-five percent of the resident owners within the 
territory of the lake improvement district specified in the 
resolution adopted pursuant to section 378.42 prior to the 
effective date of its creation as specified in section 378.46, 
the county board or boards shall hold the creation in abeyance 
pending referendum vote of all qualified voters and resident 
owners residing within the boundaries of the proposed lake 
improvement district.  Twenty-six percent of the property owners 
within the lake improvement district established by the board or 
a joint county authority on its own initiative under section 
378.42 may petition for a referendum on establishing the 
district before the effective date of its establishment.  After 
receiving the petition, the county board or joint county 
authority must issue an order staying the establishment until a 
referendum vote is taken of all qualified voters and property 
owners within the proposed lake improvement district.  
    Subd. 2.  [ELECTION.] The county board or boards joint 
county authority shall make arrangements for the holding 
of conduct a special election not less than 30 nor more than 90 
days in July or August after receipt of such receiving the 
referendum petition.  The special election must be held within 
the boundaries of the proposed lake improvement district 
specified in the resolution adopted pursuant to section 378.42.  
If a general election will be held within the time specified, 
the vote on creation may be held as part of the general election.
The county auditor shall administer the special election.  
    Subd. 3.  [QUESTION SUBMITTED TO VOTERS.] The question to 
be submitted and voted upon by the qualified voters and resident 
property owners within the territory of the proposed lake 
improvement district shall must be phrased stated substantially 
as follows: 
    "Shall Should a lake improvement district be established in 
order to provide (description of intended water and related land 
resources improvements) and financed by (description of revenue 
sources)?" 
    Subd. 4.  [CERTIFICATION OF VOTE AND ESTABLISHMENT.] Upon 
certification of the vote by The county auditor, must certify 
the vote on the question submitted.  If a majority of those 
voting on the question favor creation of establishing the 
proposed lake improvement district, the lake improvement stay on 
establishing the district shall be deemed created is lifted.  If 
a majority of those voting on the question do not favor 
establishing the proposed lake improvement district, the 
establishment is denied.  
    Sec. 10.  Minnesota Statutes 1984, section 378.51, is 
amended to read: 
    378.51 [BOARD OF DIRECTORS.] 
    Subdivision 1.  [MEMBERSHIP.] After creation of a lake 
improvement district is established, the county board or boards 
joint county authority shall appoint persons to serve as a an 
initial board of directors for the lake improvement district.  
The number, qualifications, terms of office, removal, and 
filling of vacancies of directors shall be as provided in 
the resolution order creating the board of directors. The 
initial board and all subsequent boards of directors shall must 
include persons owning property within the district, at least 
one of whom is a resident and a majority of the directors must 
be residents of the district. 
    Subd. 2.  [COMPENSATION.] The directors shall serve without 
with compensation but as determined by the property owners at 
the annual meeting and may be reimbursed for their actual 
expenses necessarily incurred in the performance of their duties 
in the manner provided for county employees. 
    Subd. 3.  [POWERS.] When directed by resolution of the 
county board or boards creating it, the board of directors shall 
have, exercise, and perform the powers and duties of the county 
board under section 378.31, except the power to acquire property 
by eminent domain County boards, joint county authorities, 
statutory and home rule cities, and towns may, by order, 
delegate the powers in this section to the board of directors of 
a district to be exercised within the district.  Programs and 
services undertaken must be consistent with the statewide water 
and related land resources plan prepared by the commissioner of 
natural resources, and with regional water and related resources 
plans.  A body of water may not be improved by using authority 
granted under this section unless the public has access to some 
portion of the shoreline.  County boards, joint county 
authorities, statutory and home rule cities, and towns may 
delegate their authority to a district board of directors to: 
     (1) acquire by gift or purchase an existing dam or control 
works that affects the level of waters in the district; 
     (2) construct and operate water control structures that are 
approved by the commissioner of natural resources under section 
105.42; 
     (3) undertake projects to change the course current or 
cross section of public waters that are approved by the 
commissioner of natural resources under section 105.42; 
     (4) acquire property, equipment, or other facilities, by 
gift or purchase to improve navigation; 
     (5) contract with a board of managers of a watershed 
district within the lake improvement district or the board of 
supervisors of a soil and water conservation district within the 
district for improvements under chapters 40 and 112; 
     (6) undertake research to determine the condition and 
development of the body of water and the water entering it and 
to transmit the studies to the pollution control agency and 
other interested authorities; 
    (7) develop and implement a comprehensive plan to eliminate 
water pollution; 
    (8) conduct a program of water improvement and conservation;
    (9) construct a water, sewer, or water and sewer system in 
the manner provided by section 444.075 or other applicable laws; 
    (10) receive financial assistance from and participate in 
projects or enter into contracts with federal and state agencies 
for the study and treatment of pollution problems and related 
demonstration programs; 
    (11) make cooperative agreements with the United States or 
state government or other county or city to effectuate water and 
related land resource programs; 
    (12) maintain public beaches, public docks, and other 
public facilities for access to the body of water;  
    (13) provide and finance a government service of the county 
or statutory or home rule city that is not provided throughout 
the county or, if the government service is provided, the 
service is at an increased level within the district; and 
     (14) regulate water surface use as provided in section 
378.32. 
    Sec. 11.  Minnesota Statutes 1984, section 378.52, is 
amended to read: 
    378.52 [FINANCING.] 
    Subdivision 1.  [REVENUE.] The county board or boards in 
order to accomplish the purposes specified in the resolution 
creating a lake improvement district joint county authority may 
undertake projects of improvement consistent with these purposes 
and of the district.  To finance projects and services of the 
district, the county board or joint county authority may:  
    (1) assess the costs of the projects upon benefited 
property within the district in the manner provided in under 
chapter 429, may; 
    (2) impose service charges on the users of lake improvement 
district services within the area, and may district; 
    (3) issue obligations as provided in section 429.091; 
     (4) levy an ad valorem tax solely on property situated 
within the lake improvement district, to be appropriated and 
expended solely on projects of special benefit to the 
area, district; or 
    (5) may impose or issue any combination of service charges, 
special assessments, obligations, and taxes. 
    Subd. 2.  [TAX EXCLUDED FROM OTHER LIMITATIONS.] The tax 
provided for by under subdivision 1 shall not be subject to 
any is excluded from statutory limitation as to limitations on 
the amount of taxes levied and shall does not affect the amount 
or rate of taxes that may be levied for other county 
purposes.  Such A tax under subdivision 1 may be in addition 
to any amounts levied upon on all taxable property in the county 
for the same or similar purposes. 
    Subd. 3.  [BUDGETING FOR OPERATIONS.] Upon adoption of its 
annual budget, The county board or county boards forming the 
joint county authority shall include appropriate provisions in 
its budget for the operation of the a lake improvement district. 
    Sec. 12.  Minnesota Statutes 1984, section 378.54, is 
amended to read: 
    378.54 [ENFORCEMENT OF ORDINANCES.] 
    Where a lake improvement district has been established by 
joint county action under section 378.44 or order of the 
commissioner of natural resources under section 378.45, 
ordinances and regulations adopted by joint action of the 
affected county boards may be enforced in any part of the lake 
improvement district by personnel of any of the affected 
counties.  
    Sec. 13.  Minnesota Statutes 1984, section 378.55, is 
amended to read: 
    378.55 [EXPANSION OF THE BOUNDARIES OF A LAKE IMPROVEMENT 
DISTRICT.] 
    A county board, on its own motion or pursuant to petition, 
may enlarge any existing lake improvement district pursuant to 
the procedures specified in The boundary of a district may be 
enlarged by complying with the procedures to establish a 
district under sections 378.41 to 378.46. 
    Sec. 14.  Minnesota Statutes 1984, section 378.56, is 
amended to read: 
     378.56 [TERMINATION.] 
    Subdivision 1.  [PETITION.] Upon receipt of a Termination 
of a district may be initiated by petition requesting the 
termination of the district.  The petition must be signed by 51 
26 percent of the resident property owners within the territory 
of the lake improvement district requesting the termination of 
the lake improvement district, in a district within 30 days 
after receiving a petition.  The county board or boards shall 
within 30 days after receipt of such a petition, by its order 
fix joint county authority must set a time and place, for a 
hearing thereon on terminating the district. 
    Subd. 1a.  [FINDINGS AND ORDER.] If the board or boards 
joint county authority determine that the existence of the 
district is no longer in the public welfare or public interest 
and it is not needed to accomplish the purpose of sections 
378.31 to 378.57 the board or boards joint county authority 
shall by its make the findings and order terminate the district 
by order.  Upon filing a certified copy of the findings and 
order with the secretary of state, pollution control agency, and 
commissioner of natural resources the district shall cease is 
terminated and ceases to be a political subdivision of the state.
    Subd. 2.  [TERMINATION OF FINANCING.] If a lake improvement 
district is terminated pursuant to under subdivision 1, no 
additional water and related land resource management 
programs shall may not be undertaken with money raised by a 
special tax within the district, and no additional special water 
and related land resource management taxes shall may not be 
levied within the district.  When If money raised by past 
special tax levies within the district has been exhausted, 
further operation and maintenance of existing programs may be 
financed by appropriations from the general revenue fund of the 
an affected county. 
    Sec. 15.  Minnesota Statutes 1984, section 378.57, is 
amended to read: 
    378.57 [ANNUAL MEETING OF DISTRICT.] 
    Subdivision 1.  [TIME.] Every lake improvement A district 
shall must have an annual meeting.  The first annual meeting 
shall be scheduled during the months of July or August, and 
shall be held annually thereafter in that period unless changed 
by vote of the previous annual meeting. 
    (1) Subd. 2.  [NOTICE.] The annual meeting shall be 
preceded by written notice mailed at least ten days in advance 
of the meeting to all resident property owners within the 
district and to the pollution control agency and commissioner of 
natural resources. 
    (2) Subd. 3.  [AGENDA.] At the annual meeting the district 
property owners present shall: 
    (a) (1) elect one or more directors to fill vacancies in 
the district board. of directors; 
    (b) (2) approve a budget for the coming fiscal year.; 
    (c) (3) approve or disapprove all proposed projects by the 
district having a cost to the district in excess of $5,000, by 
vote of the resident owners within the district.; and 
    (d) (4) take up and consider such other business as comes 
before it. 
     Sec. 16.  Minnesota Statutes 1984, section 459.20, is 
amended to read: 
     459.20 [AUTHORITY OVER PUBLIC WATERS.] 
    The governing body of any home rule charter or statutory 
city or town in the state has, with respect to any body of water 
situated wholly within its boundaries, all the powers to improve 
and regulate the use of such body of water as are conferred on 
county boards by sections 378.31 and 378.32, and to establish 
and administer lake improvement districts under sections 378.41 
378.401 to 378.57.  With respect to any body of water situated 
wholly within the contiguous boundaries of two or more home rule 
charter or statutory cities or towns or any combination thereof, 
the city councils and town boards may, under the provisions of 
section 471.59, jointly exercise such powers to improve and 
regulate the use of the body of water as are conferred on county 
boards by sections 378.31 and 378.32, and to establish and 
administer lake improvement districts as provided under sections 
378.41 378.401 to 378.57, provided that, no home rule charter or 
statutory city or town may establish and administer a lake 
improvement district or exercise any of the powers granted in 
this section if a lake improvement district covering the same 
territory has been created by a county board under sections 
378.41 378.401 to 378.57.  References in sections 378.31 to 
378.35 and 378.41 378.401 to 378.57 to the county board shall be 
construed to refer to the governing body of a home rule charter 
or statutory city or the board of supervisors of a town. 
    Sec. 17.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes shall renumber section 378.57 as 
378.545.  
    Sec. 18.  [EFFECTIVE DATE.] 
    Sections 1 to 17 are effective the day after final 
enactment. 
    Approved March 25, 1986