Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 211-S.F.No. 1252 
           An act relating to local government; the towns of 
          Crystal Bay, Beaver Bay, and Stony River, the cities 
          of Beaver Bay and Silver Bay, and Unorganized 
          Territory No. 1; permitting the establishment of a 
          medical clinic district; permitting a hospital 
          appropriation by the Cook county board; authorizing 
          the establishment of a Cook county hospital district; 
          adding and removing certain unorganized territory from 
          a St. Louis county hospital district; validating 
          hospital referenda; providing for certain bonded 
          indebtedness of the city of Cook; amending Laws 1988, 
          chapter 645, sections 1, subdivision 1, and by adding 
          a subdivision; and 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [CREATION OF MEDICAL CLINIC DISTRICT.] 
    Subdivision 1.  [RESOLUTIONS.] Any one or more of the towns 
of Crystal Bay, Beaver Bay, and Stony River, the cities of 
Beaver Bay and Silver Bay, and Unorganized Territory No. 1 may 
create a medical clinic district by resolutions adopted by their 
governing bodies. 
    No city, town, or unorganized territory shall be included 
in a medical clinic district created under this section unless 
its entire territory is included in the district.  
    Subd. 2.  [CONTENTS OF RESOLUTION.] A resolution under 
subdivision 1 must state that a medical clinic district is 
authorized to be created under this act to acquire, improve, and 
run medical clinic facilities that the medical clinic board 
decides are necessary and expedient in accordance with this 
act.  The resolution must name the cities, towns, or unorganized 
territories included in the district.  The resolution must be 
adopted by a two-thirds majority of the governing body acting on 
it.  For the purposes of this act, the Lake county board of 
commissioners is the governing body of Unorganized Territory No. 
1 and the governing body of a town is its town board. 
    Each resolution adopted by the governing body of a city, 
town, or unorganized territory must be published in its official 
newspaper and takes effect 40 days after publication, unless a 
petition for a referendum on the resolution is filed with the 
governing body within 40 days.  A petition for a referendum must 
be signed by at least five percent of the number of voters 
voting at the last general election.  If a petition is filed, 
the resolution does not take effect until approved by a majority 
of voters voting on it at a regular municipal election or a 
special election which the governing body may call for that 
purpose.  
    Subd. 3.  [FILING RESOLUTIONS.] The medical clinic district 
is created or reorganized on the effective date of the last 
resolution required to authorize it.  Certified copies of each 
resolution must be sent by the clerk or other recording officer 
of the governing body adopting it to the Lake county auditor.  
The county auditor shall file certified copies of the 
resolutions with the county recorder and the secretary of state 
to be filed as a public record.  
    Subd. 4.  [CORPORATE POWERS OF DISTRICT.] A medical clinic 
district created under this act is a municipal corporation and 
political subdivision of the state and has perpetual existence.  
It may contract and be contracted with and sue and be sued.  It 
may use a corporate seal.  It may acquire real and personal 
property as needed.  It may hold, manage, control, sell, convey, 
or otherwise dispose of the property as its interests require. 
    Real or personal property that is acquired, owned, leased, 
controlled, used, or occupied by a district for the purposes of 
this act is exempt from taxation by the state or its political 
subdivisions. 
    Sec. 2.  [OFFICERS.] 
    Subdivision 1.  [TERMS OF OFFICE.] The medical clinic 
district shall be governed by a medical clinic board.  The 
governing body of each city, town, or unorganized territory in 
the district shall appoint one member to the board.  A member's 
term of office is four years and until a successor is 
appointed.  At the first appointment, however, members must be 
appointed so that half the terms, as nearly as may be, expire on 
December 31 of the next even-numbered year and the remaining 
terms expire two years from that date.  After that, before a 
member's term expires, a new member shall be appointed for a 
term of four years from the expiration date.  
    If a member dies, resigns, fails to qualify, or moves from 
the medical clinic district, a successor shall be appointed to 
complete the term by the governing body of the city, town, or 
unorganized territory in which the member lived. 
    Subd. 2.  [BOARD MEETINGS.] Regular meetings of the board 
must be held at least once a year, at a time and place the board 
sets by resolution.  Special meetings may be held: 
    (1) at any time upon the call of the chair or any two 
members; 
    (2) upon written notice mailed to each member three days 
before the meeting; 
    (3) upon other notice as the board by resolution may 
provide; or 
    (4) without notice if each member is present or files with 
the clerk a written consent to holding the meeting.  The consent 
may be filed before or after the meeting.  Any action within the 
authority of the board may be taken by the vote of a majority of 
the members present at a regular or adjourned regular meeting or 
at a duly called special meeting, if a quorum is present.  A 
majority of all the members of the board is a quorum, but a 
lesser number may meet and adjourn from time to time. 
    Subd. 3.  [OFFICERS' ELECTION.] At its first regular 
meeting each year, the board shall elect one of their number as 
chair.  They shall also select a clerk and treasurer who may be 
members of the board or others.  The chair, clerk, and treasurer 
shall hold office at the pleasure of the board. 
    Subd. 4.  [OFFICERS' DUTIES.] The chair shall preside at 
all meetings of the board, sign orders upon the treasurer for 
claims allowed by the board, and perform all duties usually 
incumbent upon a presiding officer.  The clerk shall record the 
minutes of all meetings of the board, countersign all orders 
upon the treasurer, and be the custodian of district books and 
records.  The treasurer shall be the custodian of all money 
received by the district, and pay out money only on orders 
signed by the chair and clerk.  Each order must state the nature 
of the claim for which it is issued, the name of the payee, and 
the fund on which it is drawn.  It may be drawn so that when 
signed by the treasurer in an appropriate place it becomes a 
check on the depository of funds of the medical clinic 
district.  In case of absence, inability, or refusal of the 
chair, clerk, or treasurer to execute and disburse orders in 
payment of a claim allowed by the board, the board may declare 
any of their offices vacant and fill them by appointment.  The 
board may also appoint a deputy to perform the functions of the 
officers, subject to the officers' supervision and control. 
    Subd. 5.  [COMPENSATION.] The members of the board shall 
receive no compensation for performing their board duties, and 
no reimbursement for mileage or other expenses. 
    Subd. 6.  [LIABILITY FOR DAMAGES.] Except as otherwise 
provided in this subdivision, no person who serves as a member 
of the board shall be civilly liable for an act or omission by 
that person if the act or omission was in good faith, was within 
the scope of the person's responsibilities as a member of the 
board, and did not constitute willful or reckless misconduct.  
This subdivision does not apply to: 
    (1) an action or proceeding brought by the attorney general 
for a breach of a fiduciary duty as a director; 
    (2) a cause of action to the extent it is based on federal 
law; or 
    (3) a cause of action based on the board member's express 
contractual obligation. 
    Nothing in this subdivision shall be construed to limit the 
liability of a member of the board for physical injury to the 
person of another or for wrongful death which is personally and 
directly caused by the board member. 
    Sec. 3.  [POWERS.] 
    Subdivision 1.  [BROAD POWERS OF DISTRICT.] The medical 
clinic district has the powers necessary and convenient to 
acquire, improve, and run the medical clinic facilities as the 
medical clinic board finds expedient.  It may take any lawful 
action necessary or convenient to further the purpose for which 
the district exists.  
    Subd. 2.  [SPECIFIC POWERS.] The district, acting through 
its medical clinic board, may: 
    (1) employ personnel necessary to maintain the clinic 
district property; 
    (2) lease, purchase, or construct, equip, furnish, and 
maintain necessary buildings and grounds; 
    (3) accept gifts; 
    (4) adopt rules for the operation and administration of the 
medical clinic facilities under its control; 
    (5) impose by resolution, and collect, charges for services 
and facilities provided and made available by it; 
    (6) levy taxes as provided in section 4; 
    (7) buy liability insurance for the district or its 
officers and employees or both, for torts committed within the 
scope of their official duties, whether governmental or 
proprietary, and against damage to or destruction of any of its 
facilities, equipment, or other property; 
    (8) sell or lease its facilities or equipment as it finds 
expedient; and 
    (9) have its accounts, books, vouchers, and funds audited 
by competent public accountants.  
    Sec. 4.  [PAYMENT OF EXPENSES; TAXATION.] 
    Subdivision 1.  [EXPENSES PAID FROM REVENUE, TAXES, AND 
APPROPRIATIONS; TAX LIMITS.] Expenses of acquiring, improving, 
and running medical clinic facilities operated by the medical 
clinic district, and expenses of organization and administration 
of the district and of planning and financing the facilities, 
must be paid from the revenues derived from them, and to the 
extent necessary, from property taxes levied by the medical 
clinic board on all taxable property within the district.  Taxes 
levied by the board in any year may not exceed $30,000. 
    Subd. 2.  [DETERMINING AND CERTIFYING TAX AMOUNT.] On or 
before October 10 of each year, the medical clinic board shall 
determine the amount necessary to be raised from property tax 
levies to meet its expenses.  No later than October 10, the 
secretary of the board shall certify that amount to the Lake 
county auditor. 
    Subd. 3.  [TAX COLLECTION AND SETTLEMENT.] The county 
auditor shall add the amount of any levy so determined to the 
other tax levies on property located in the medical clinic 
district, for collection by the county treasurer with other 
taxes.  When collected, the county treasurer shall settle the 
taxes with the treasurer of the medical clinic district in the 
same way as other taxes. 
     Sec. 5.  [COORDINATION WITH LEVY LIMITS.] 
    Notwithstanding any other law to the contrary, the amount 
of tax extended pursuant to section 4, subdivision 3, in any 
city or township subject to levy limits pursuant to Minnesota 
Statutes, section 275.51, shall be deducted from each city's or 
township's levy limit pursuant to section 275.51.  The 
department of revenue is authorized to estimate the deduction 
when determining each city's or township's levy limit.  The 
department of revenue will adjust the city's or township's levy 
limit in the subsequent year for any difference between the 
estimate and the actual tax extended pursuant to section 4, 
subdivision 3. 
    Sec. 6.  [DISSOLUTION:  DETACHMENT OF TERRITORY.] 
    Subdivision 1.  [DISSOLUTION; PETITION; BOARD'S ORDER.] The 
medical clinic district may be dissolved upon a petition to the 
medical clinic district board.  The petition must state the 
grounds for dissolution, be signed by an authorized officer of 
the governing body of any city, town, or unorganized territory 
included in the medical clinic district pursuant to a resolution 
of the governing body, and contain a proposal for distribution 
of the remaining funds of the district, if any, among the 
related governmental subdivisions.  Except as otherwise 
provided, a proceeding for dissolution is governed by the 
provisions relating to proceedings for the organization of a 
district, so far as applicable.  If the board determines that 
the conditions for the creation of the district no longer exist, 
and that all property of the district except money has been 
disposed of, it may make an order dissolving the district and 
directing the distribution of any money among the governmental 
subdivisions on a basis the board determines to be just and 
equitable, to be specified in the order.  Certified copies of 
the order for dissolution must be transmitted and filed as 
provided for an order creating a district.  The clerk of the 
board shall also transmit a certified copy of the order to the 
treasurer of the district.  The treasurer shall then distribute 
the money as directed by the order, and is responsible for it 
until distributed.  
    Subd. 2.  [DETACHMENT OF CITY, TOWN, OR UNORGANIZED 
TERRITORY; SAME PROCEDURE.] A city, town, or unorganized 
territory included in the medical clinic district may withdraw 
from it by, as far as practical, the procedure provided for 
dissolution of the district.  The consent of the other members 
is not required. 
     Sec. 7.  [COOK COUNTY; HOSPITAL APPROPRIATION.] 
    Notwithstanding the limitations of Minnesota Statutes, 
section 376.08, the board of commissioners of Cook county may 
appropriate up to $240,000 from the proceeds of the 1988 general 
county levy for taxes payable in 1989 for the cost of acquiring, 
constructing, improving, altering, equipping, maintaining, and 
operating hospitals within the county. 
    Sec. 8.  [COOK COUNTY; HOSPITAL DISTRICT.] 
    Subdivision 1.  [CREATION; REFERENDUM.] The board of 
commissioners of Cook county may by resolution create a Cook 
county hospital district.  The resolution providing for creation 
of the district must be published in the official newspaper of 
the county.  If within ten days after the publication a petition 
is filed with the county board that is signed by qualified 
voters of the county at least equal in number to ten percent of 
the number of voters voting at the most recent election of 
county commissioners, requesting a referendum on the resolution, 
it shall not be effective until it is approved by a majority of 
qualified voters voting on the question at a special or general 
election.  
    Subd. 2.  [OPERATION OF DISTRICT.] A hospital district 
created under this section shall be subject to Minnesota 
Statutes, sections 397.06 to 397.102, except as provided 
otherwise in this act.  
    Subd. 3.  [BOARD.] Notwithstanding Minnesota Statutes, 
section 397.06, the board of the district shall be comprised of 
one member from each county commissioner district elected by the 
voters at the first general election in the county after the 
resolution has become effective.  After the 1992 general 
election, the term of each board member shall be four years or 
until a successor has been elected and qualified.  Terms shall 
begin on the first day of January following the election.  If 
members are elected in 1990, their terms shall be two years.  
    When the district is first created, the county commissioner 
from each district shall appoint a member of the board to serve 
until the commencement of the term of a successor.  Thereafter 
when a vacancy occurs, the county commissioner from the district 
affected shall appoint a member to serve until January 1 
following the next general election in the county, when a 
successor shall be elected for a regular term or the unexpired 
remainder of the regular term.  
     Subd. 4.  [TAX LEVY.] The tax levied under Minnesota 
Statutes, section 397.09, shall not exceed $300,000 in any year, 
and its proceeds may be used for all purposes of the hospital 
district.  
    Sec. 9.  Laws 1988, chapter 645, section 1, subdivision 1, 
is amended to read: 
    Subdivision 1.  [ST. LOUIS COUNTY.] The St. Louis county 
board may, acting for the unorganized townships listed in this 
subdivision, request the annexation of those townships to a 
hospital district to be organized under Minnesota Statutes, 
sections 447.31 to 447.37, that includes the city of Cook and 
the city of Orr as well as other townships in Koochiching county 
and St. Louis county.  The unorganized townships are:  61 North, 
Range 17 West; 62 North, Range 21 West; 63 North, Range 21 West; 
63 North, Range 19 West; 64 North, Range 21 West; 64 North, 
Range 18 West; 65 North, Range 21 West; 66 North, Range 21 West; 
66 North, Range 20 West; 66 North, Range 19 West; 67 North, 
Range 21 West; 67 North, Range 20 West; 67 North, Range 19 West; 
67 North, Range 18 West; 67 North, Range 17 West; 68 North, 
Range 21 West; 68 North, Range 20 West; 68 North, Range 19 West; 
68 North, Range 18 West; 68 North, Range 17 West; 69 North, 
Range 21 West; 69 North, Range 20 West; 69 North, Range 19 West; 
69 North, Range 18 West; 69 North, Range 17 West; 70 North, 
Range 21 West; 70 North, Range 20 West; 70 North, Range 19 West; 
70 North, Range 18 West; 71 North, Range 21 West; and 71 North, 
Range 20 West; 62 North, Range 17 West; 63 North, Range 17 West; 
64 North, Range 17 West; 64 North, Range 16 West; 65 North, 
Range 16 West; 66 North, Range 16 West; and 67 North, Range 16 
West. 
    Sec. 10.  Laws 1988, chapter 645, section 1, is amended by 
adding a subdivision to read: 
    Subd. 5.  [PRIOR REFERENDUM.] A referendum held under 
Minnesota Statutes, section 447.31, subdivision 3, is valid 
notwithstanding a subsequent amendment to Laws 1988, chapter 645.
     Sec. 11.  Laws 1988, chapter 645, section 4, is amended to 
read: 
     Sec. 4.  [TRANSFER OF FACILITIES OF CITY OF COOK.] 
    The city of Cook may transfer title and interest in its 
hospital and nursing home, including the real estate, building, 
and equipment, to the hospital district created under this act 
for no consideration.  All bonded obligations incurred prior to 
the transfer in connection with the construction or operation of 
the hospital and nursing home shall remain as the exclusive 
obligation of the city of Cook. 
     Sec. 12.  [EFFECTIVE DATE.] 
    Pursuant to Minnesota Statutes, section 645.023, 
subdivision 1, clause (a), this act takes effect the day after 
final enactment. 
    Presented to the governor May 19, 1989 
    Signed by the governor May 19, 1989, 11:25 p.m.