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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1991 

                        CHAPTER 117-S.F.No. 531 
           An act relating to waste; authorizing a water or sewer 
          commission to issue bonds; amending Minnesota Statutes 
          1990, section 116A.24, subdivisions 2 and 3. 
    Section 1.  Minnesota Statutes 1990, section 116A.24, 
subdivision 2, is amended to read: 
    Subd. 2.  Subject to the approval of the board or boards 
except to the extent that approval is waived by the board or 
boards in an order filed with and confirmed by order of the 
district court, the water or sewer or water and sewer commission 
or when a multicounty system is involved a county board may do 
all things necessary to establish, construct, operate and 
maintain a system including but not limited to the following: 
    (a) Employ on such terms as it deems advisable, persons or 
firms performing engineering, legal or other services of a 
professional nature; require any employee to obtain and file 
with it an individual bond or fidelity insurance policy; and 
procure insurance in such amounts as it deems necessary against 
liability of the board or its officers and employees or both, 
for personal injury or death and property damage or destruction, 
with the force and effect stated in chapter 466, and against 
risks of damage to or destruction of any of its facilities, 
equipment, or other property as it deems necessary. 
    (b) Construct or maintain its systems or facilities in, 
along, on, under, over, or through public streets, bridges, 
viaducts, and other public rights-of-way without first obtaining 
a franchise from any local government unit having jurisdiction 
over them; but such facilities shall be constructed and 
maintained in accordance with the ordinances and resolutions of 
any such government unit relating to construction, installation, 
and maintenance of similar facilities in such public properties 
and shall not obstruct the public use of such rights-of-way. 
     (c) Enter into any contract necessary or proper for the 
exercise of its powers or the accomplishment of its purposes. 
     (d) Have the power to adopt rules and regulations relating 
to the establishment of water or sewer rentals or user fees as 
may be deemed advisable and the operation of any system operated 
by it, and may provide penalties for the violation thereof not 
exceeding the maximum which may be specified for a misdemeanor.  
Any rule or regulation prescribing a penalty for violation shall 
be published at least once in a newspaper having general 
circulation in the area. 
     (e) Act under the provisions of section 471.59, or any 
other appropriate law providing for joint or cooperative action 
between government units. 
     (f) Acquire by purchase, lease, condemnation, gift, or 
grant, any real or personal property including positive and 
negative easements and water and air rights, and it may 
construct, enlarge, improve, replace, repair, maintain, and 
operate any system determined to be necessary or convenient for 
the collection and disposal of sewage or collection, treatment, 
and distribution of water in its jurisdiction.  Any local 
government unit and the commissioners of transportation and 
natural resources are authorized to convey to or permit the use 
of any such facilities owned or controlled by it by the board or 
commission, subject to the rights of the holders of any bonds 
issued with respect thereto, with or without compensation, 
without an election or approval by any other government agency.  
The board or commission may hold such property for its purposes, 
and may lease any such property so far as not needed for its 
purposes, upon such terms and in such manner as it shall deem 
advisable.  Unless otherwise provided, the right to acquire 
lands and property rights by condemnation shall be exercised in 
accordance with sections 117.011 to 117.232, and shall apply to 
any property or interest therein owned by any local government 
unit; provided, that no such property devoted to an actual 
public use at the time, or held to be devoted to such use within 
a reasonable time, shall be so acquired unless a court of 
competent jurisdiction shall determine that the use proposed by 
the commission is paramount to such use.  Except in case of 
property in actual public use, the board or commission may take 
possession of any property for which condemnation proceedings 
have been commenced at any time after the issuance of a court 
order appointing commissioners for its condemnation. 
    (g) Contract with the United States or any agency thereof, 
any state or agency thereof, or any local government unit or 
governmental agency or subdivision, for the joint use of any 
facility owned by the board or such entity, for the operation by 
such entity of any system or facility of the board, or for the 
performance on the board's behalf of any service, on such terms 
as may be agreed upon by the contracting parties. 
    (h) Exercise any other powers granted to the board or 
boards or court under section 116A.01, subdivision 2, relating 
to the establishment of a water or sewer or water and sewer 
system, except for the power to issue bonds that the issuance of 
bonds by a commission is subject to subdivision 3, paragraph (b).
    (i) Retain the services of a certified public accountant 
for the purposes of providing an annual audited operating 
statement and balance sheet and other financial reports.  The 
reports must be prepared in accordance with general accounting 
principles and must be filed within six months after the close 
of the fiscal year in the office of each county auditor within 
the district and with the office of the state auditor.  The 
reports may be prepared by the state auditor instead of by a 
certified public accountant if the commission so requests.  
    Sec. 2.  Minnesota Statutes 1990, section 116A.24, 
subdivision 3, is amended to read: 
    Subd. 3.  (a) The payment of the cost of construction of a 
multicounty system established by order pursuant to section 
116A.12, and of the subsequent improvement or extension of the 
system when ordered by the court, is the obligation of each of 
the counties containing property assessable for the system, in 
proportion to the area of such property situated within the 
county, or in any other proportion which the counties, by 
concurring resolutions, confirmed by order of the court, may 
determine is just and reasonable.  When bonds are sold and 
issued by the counties to pay such cost pursuant to section 
116A.20, the proceeds of the bonds, except such portion as the 
county shall retain to pay interest until the system is 
self-supporting, shall be remitted to the commission, and the 
commission shall receive and disburse all revenues of the 
system, and shall act as agent of the counties in supervising 
the construction, improvement, and extension thereof, and 
thereafter in operating and maintaining the system.  All 
collections of special assessments and any debt service ad 
valorem taxes levied for the system on property within each 
county shall be deposited as received in the sinking fund for 
bonds issued by that county to finance the system or extensions 
or improvements thereof, or in a single joint account 
administered by the commission on behalf of the counties for 
payment into the respective sinking fund accounts of the 
counties at such times and in such amounts as the county boards 
mutually determine is just and reasonable.  The commission shall 
remit to the counties the net revenues from time to time 
received in excess of the amounts needed to pay current 
operation and maintenance expenses of the system and to maintain 
a reasonable operating reserve.  The net revenues remitted each 
year shall be apportioned among the counties in proportion to 
the principal amount of bonds of each county then outstanding, 
which were issued for the establishment, improvement, or 
extension of the system or any other proportion which the 
counties mutually determine is just and reasonable; provided 
that with the consent of the county boards, the commission may 
retain any portion of the net revenues not needed for the 
payment of their bonds in a special fund to be expended for the 
improvement or extension of the system. 
     (b) The commission may incur debt by issuing obligations 
for any lawful purpose, including the construction, alteration, 
extension, or improvement of works or any part of works or of a 
building for the use of the commission, and for the purchase of 
materials, machinery, and equipment necessary for carrying out 
the commission's authority.  The debt, whether express or 
implied, must be payable solely: 
    (1) from revenues, income, receipts, and profits derived by 
the commission from the operation and management of its system; 
    (2) from the proceeds of other debt incurred by the 
commission under this paragraph; or 
    (3) from federal or state grants, gifts, or other available 
    (c) The commission may by resolution pledge any source of 
revenue referred to in paragraph (b) to pay obligations and 
interest on them.  The resolution may specify the particular 
revenues that are pledged, related terms and conditions, and the 
rights of holders.  The commission may provide for the refunding 
of obligations through the issuance of other obligations, with 
rights and priorities similar in all respects to those of the 
refunded obligations. 
    (d) All accounts authorized by this subdivision may be 
established within a single fund administered by the commission 
on behalf of the counties and held in a single bank mutually 
designated by the county boards to serve as a depository for all 
sums, including bond proceeds, special assessments, tax levies 
and revenues received on account of the system. 
    Presented to the governor May 16, 1991 
    Signed by the governor May 19, 1991, 7:21 p.m.