Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 382-S.F.No. 3134
An act relating to environment; clarifying individual
sewage treatment classification; regulating appliance
recycling activities; abolishing the waste tire grant
and loan program; requiring a water quality permit
progress report; establishing the central iron range
sanitary sewer district; amending Minnesota Statutes
2000, sections 115.55, by adding a subdivision;
115A.9561, subdivision 2; Minnesota Statutes 2001
Supplement, section 115A.912, subdivision 1; Laws
2002, chapter 293, by adding a section; repealing
Minnesota Statutes 2000, section 115A.913; Minnesota
Rules, parts 9220.0130, subpart 2, item H; 9220.0170;
9220.0180; 9220.0800; 9220.0805; 9220.0810; 9220.0815;
9220.0820; 9220.0825; 9220.0830; 9220.0835; 9220.0900;
9220.0905; 9220.0910; 9220.0915; 9220.0920; 9220.0925;
9220.0930; 9220.0935.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
POLLUTION CONTROL AGENCY
Section 1. Minnesota Statutes 2000, section 115.55, is
amended by adding a subdivision to read:
Subd. 10. [SYSTEM CLASSIFICATION.] The agency is not
required to add, remove, or reclassify individual sewage
treatment system technologies, designs, or system components
through rulemaking or pursuant to existing rules until July 1,
2003. The agency is not required to review, assess, advise, or
make regulatory determinations on an individual sewage treatment
system technology, design, or system component during this
period. Chambered systems, as defined in Minnesota Rules, part
7080.0020, that are installed before July 1, 2003, with smaller
than standard soil sizing, but which otherwise conform with
Minnesota Rules, part 7080.0178, are not required to have flow
measuring devices installed and monitored unless required by
local ordinance.
Sec. 2. Minnesota Statutes 2001 Supplement, section
115A.912, subdivision 1, is amended to read:
Subdivision 1. [PURPOSE.] Money appropriated to the agency
for waste tire management may be spent for regulation of
permitted waste tire facilities, research and studies to
determine the technical and economic feasibility of uses for
tire derived products, and public education on waste tire
management, and grants and loans under section 115A.913.
Sec. 3. Minnesota Statutes 2000, section 115A.9561,
subdivision 2, is amended to read:
Subd. 2. [RECYCLING REQUIRED.] (a) Major appliances must
be recycled or reused. Each county shall ensure that its
households have the opportunity to recycle used major
appliances. For the purposes of this section, recycling
includes:
(1) the removal of capacitors that may contain PCBs;
(2) the removal of ballasts that may contain PCBs;
(3) the removal of chlorofluorocarbon refrigerant gas; and
(4) the recycling or reuse of the metals, including mercury.
(b) To ensure that the materials removed from a major
appliance are not introduced into the environment, an activity
described in paragraph (a), clauses (1) to (3), must be
conducted in a closed facility if the activity is conducted
within 500 feet from the ordinary high water level of a
waterbasin that is a public water, as those terms are described
in section 103G.005, or of a watercourse identified by the
public waters inventory under section 103G.201.
Sec. 4. Laws 2002, chapter 293, is amended by adding a
section to read:
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
Sec. 5. [WATER QUALITY PERMIT PROGRESS REPORT.]
By January 15, 2003, the commissioner of the pollution
control agency must submit a report to the chairs of the
legislative committees with jurisdiction over environmental
policy and finance regarding the agency's water quality
permits. The report must address:
(1) the status of the agency's permit backlog, including,
but not limited to, the number of facilities operating under
expired permits, the number of on-site inspections, and the
number of facilities in significant noncompliance;
(2) implementation of improvements in the permitting
process and any resulting effects on staff for nonpoint source
programs; and
(3) any legislative and administrative changes needed for
the phosphorus and mercury components of the permits.
Sec. 6. [REPEALER.]
Minnesota Statutes 2000, section 115A.913; and Minnesota
Rules, parts 9220.0130, subpart 2, item H; 9220.0170; 9220.0180;
9220.0800; 9220.0805; 9220.0810; 9220.0815; 9220.0820;
9220.0825; 9220.0830; 9220.0835; 9220.0900; 9220.0905;
9220.0910; 9220.0915; 9220.0920; 9220.0925; 9220.0930; and
9220.0935, are repealed.
Sec. 7. [EFFECTIVE DATE.]
Sections 1, 2, and 6 are effective the day following final
enactment. Section 4 is effective retroactively on March 27,
2002.
ARTICLE 2
CENTRAL IRON RANGE SANITARY SEWER DISTRICT
Section 1. [CENTRAL IRON RANGE SANITARY SEWER DISTRICT;
DEFINITIONS.]
Subdivision 1. [APPLICATION.] In sections 1 to 19, the
definitions in this section apply.
Subd. 2. [DISTRICT.] "Central iron range sanitary sewer
district" and "district" mean the area over which the central
iron range sanitary sewer board has jurisdiction, which includes
the area within the cities of Hibbing, Chisholm, and Buhl; the
townships of Kinney, Balkan, and Great Scott; and the territory
occupied by Ironworld. The district shall precisely describe
the area over which it has jurisdiction by a metes and bounds
description in the comprehensive plan adopted pursuant to
section 5.
Subd. 3. [BOARD.] "Sanitary sewer board" or "board" means
the central iron range sanitary sewer board established for the
district as provided in subdivision 2.
Subd. 4. [PERSON.] "Person" means an individual,
partnership, corporation, limited liability company,
cooperative, or other organization or entity, public or private.
Subd. 5. [LOCAL GOVERNMENTAL UNITS.] "Local governmental
units" or "governmental units" means the iron range resources
and rehabilitation board, the cities of Hibbing, Chisholm, and
Buhl, and the townships of Kinney, Balkan, and Great Scott.
Subd. 6. [ACQUISITION; BETTERMENT.] "Acquisition" and
"betterment" have the meanings given in Minnesota Statutes,
section 475.51.
Subd. 7. [AGENCY.] "Agency" means the Minnesota pollution
control agency created in Minnesota Statutes, section 116.02.
Subd. 8. [SEWAGE.] "Sewage" means all liquid or
water-carried waste products from whatever sources derived,
together with any groundwater infiltration and surface water as
may be present.
Subd. 9. [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of
water" and "sewer system" have the meanings given in Minnesota
Statutes, section 115.01.
Subd. 10. [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment
works" and "disposal system" have the meanings given in
Minnesota Statutes, section 115.01.
Subd. 11. [INTERCEPTOR.] "Interceptor" means a sewer and
its necessary appurtenances, including but not limited to mains,
pumping stations, and sewage flow-regulating and flow-measuring
stations, that is:
(1) designed for or used to conduct sewage originating in
more than one local governmental unit;
(2) designed or used to conduct all or substantially all
the sewage originating in a single local governmental unit from
a point of collection in that unit to an interceptor or
treatment works outside that unit; or
(3) determined by the board to be a major collector of
sewage used or designed to serve a substantial area in the
district.
Subd. 12. [DISTRICT DISPOSAL SYSTEM.] "District disposal
system" means any and all interceptors or treatment works owned,
constructed, or operated by the board unless designated by the
board as local water and sanitary sewer facilities.
Subd. 13. [MUNICIPALITY.] "Municipality" means any town or
home rule charter or statutory city.
Subd. 14. [TOTAL COSTS.] "Total costs of acquisition and
betterment" and "costs of acquisition and betterment" mean all
acquisition and betterment expenses permitted to be financed out
of stopped bond proceeds issued in accordance with section 13,
whether or not the expenses are in fact financed out of the bond
proceeds.
Subd. 15. [CURRENT COSTS.] "Current costs of acquisition,
betterment, and debt service" means interest and principal
estimated to be due during the budget year on bonds issued to
finance costs of acquisition and betterment and all other costs
of acquisition and betterment estimated to be paid during the
year from funds other than bond proceeds and federal or state
grants.
Subd. 16. [RESIDENT.] "Resident" means the owner of a
dwelling located in the district and receiving water or sewer
service.
Sec. 2. [SANITARY SEWER BOARD.]
Subdivision 1. [ESTABLISHMENT.] A sanitary sewer district
is established in the cities of Hibbing, Chisholm, and Buhl; the
townships of Kinney, Balkan, and Great Scott; and the territory
occupied by Ironworld, to be known as the central iron range
sanitary sewer district. The sewer district is under the
control and management of the central iron range sanitary sewer
board. The board is established as a public corporation and
political subdivision of the state with perpetual succession and
all the rights, powers, privileges, immunities, and duties
granted to or imposed upon a municipal corporation, as provided
in sections 1 to 19.
Subd. 2. [MEMBERS AND SELECTION.] The board is composed of
13 members selected as provided in this subdivision. Each of
the town boards of the townships shall meet to appoint one
resident to the sewer board. Four members must be selected by
the governing body of the city of Hibbing. Three members must
be selected by the governing body of the city of Chisholm. Two
members must be selected by the governing body of the city of
Buhl. One member must be selected by the iron range resources
and rehabilitation board on behalf of Ironworld. Each member
has one vote. The first terms are as follows: four for one
year, four for two years, and five for three years, fixed by lot
at the district's first meeting. Thereafter, all terms are for
three years.
Subd. 3. [TIME LIMITS FOR SELECTION.] The board members
must be selected as provided in subdivision 2 within 60 days
after sections 1 to 19 are effective. The successor to each
board member must be selected at any time within 60 days before
the expiration of the member's term in the same manner as the
predecessor was selected. A vacancy on the board must be filled
within 60 days after it occurs.
Subd. 4. [VACANCIES.] If the office of a board member
becomes vacant, the vacancy must be filled for the unexpired
term in the manner provided for selection of the member who
vacated the office. The office is considered vacant under the
conditions specified in Minnesota Statutes, section 351.02.
Subd. 5. [REMOVAL.] A board member may be removed by the
unanimous vote of the governing body appointing the member, with
or without cause, or for malfeasance or nonfeasance in the
performance of official duties as provided by Minnesota
Statutes, sections 351.14 to 351.23.
Subd. 6. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A
certificate of selection of every board member selected under
subdivision 2 stating the term for which selected, must be made
by the respective town clerks. The certificates, with the
approval appended by other authority, if required, must be filed
with the secretary of state. Counterparts of the certificates
must be furnished to the board member and the secretary of the
board. Each member shall qualify by taking and subscribing the
oath of office prescribed by the Minnesota Constitution, article
V, section 6. The oath, duly certified by the official
administering the same, must be filed with the secretary of
state and the secretary of the board.
Subd. 7. [BOARD MEMBERS' COMPENSATION.] Each board member,
except the chair, may be paid a per diem compensation in
accordance with the board's bylaws for meetings and for other
services as are specifically authorized by the board, not to
exceed the per diem amount under Minnesota Statutes, section
15.0575, subdivision 3, and not to exceed $1,000 in any one year.
The chair may be paid a per diem compensation in accordance with
the board's bylaws for meetings and for other services
specifically authorized by the board, not to exceed the per diem
amount under Minnesota Statutes, section 15.0575, subdivision 3,
and not to exceed $1,500 in any one year. All members of the
board must be reimbursed for all reasonable and necessary
expenses actually incurred in the performance of duties.
Sec. 3. [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION
OF BOARD.]
Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS;
SEAL.] After the selection and qualification of all board
members, the board must meet to organize the board at the call
of any two board members, upon seven days' notice by registered
mail to the remaining board members at a time and place within
the district specified in the notice. A majority of the members
is a quorum at that meeting and all other meetings of the board,
but a lesser number may meet and adjourn from time to time and
compel the attendance of absent members. At the first meeting
the board shall select its officers and conduct other
organizational business as may be necessary. Thereafter the
board shall meet regularly at the time and place that the board
designates by resolution. Special meetings may be held at any
time upon call of the chair or any two members, upon written
notice sent by mail to each member at least three days before
the meeting, or upon other notice as the board by resolution may
provide, or without notice if each member is present or files
with the secretary a written consent to the meeting either
before or after the meeting. Except as otherwise provided in
sections 1 to 19, any action within the authority of the board
may be taken by the affirmative vote of a majority of the board
and may be taken by regular or adjourned regular meeting or at a
duly held special meeting, but in any case only if a quorum is
present. Meetings of the board must be open to the public. The
board may adopt a seal, which must be officially and judicially
noticed, to authenticate instruments executed by its authority,
but omission of the seal does not affect the validity of any
instrument.
Subd. 2. [CHAIR.] The board shall elect a chair from its
membership. The term of the first chair of the board expires on
January 1, 2004, and the terms of successor chairs expire on
January 1 of each succeeding year. The chair shall preside at
all meetings of the board, if present, and shall perform all
other duties and functions usually incumbent upon such an
officer, and all administrative functions assigned to the chair
by the board. The board shall elect a vice chair from its
membership to act for the chair during temporary absence or
disability.
Subd. 3. [SECRETARY AND TREASURER.] The board shall select
persons who may, but need not be, members of the board, to act
as its secretary and treasurer. The two offices may be combined.
The secretary and treasurer shall hold office at the pleasure of
the board, subject to the terms of any contract of employment
that the board may enter into with the secretary or treasurer.
The secretary shall record the minutes of all meetings of the
board, and be the custodian of all books and records of the
board except those that the board entrusts to the custody of a
designated employee. The treasurer is the custodian of all
money received by the board except as the board otherwise
entrusts to the custody of a designated employee. The board may
appoint a deputy to perform any and all functions of either the
secretary or the treasurer. A secretary or treasurer who is not
a member of the board or a deputy of either does not have the
right to vote.
Subd. 4. [PUBLIC EMPLOYEES.] The executive director and
other persons employed by the district are public employees and
have all the rights and duties conferred on public employees
under Minnesota Statutes, sections 179A.01 to 179A.25. The
board may elect to have employees become members of either the
public employees retirement association or the Minnesota state
retirement system. The compensation and conditions of
employment of the employees must be governed by rules applicable
to state employees in the classified service and to the
provisions of Minnesota Statutes, chapter 15A.
Subd. 5. [PROCEDURES.] The board shall adopt resolutions
or bylaws establishing procedures for board action, personnel
administration, keeping records, approving claims, authorizing
or making disbursements, safekeeping funds, and auditing all
financial operations of the board.
Subd. 6. [SURETY BONDS AND INSURANCE.] The board may
procure surety bonds for its officers and employees, in amounts
deemed necessary to ensure proper performance of their duties
and proper accounting for funds in their custody. It may
procure insurance against risks to property and liability of the
board and its officers, agents, and employees for personal
injuries or death and property damage and destruction, in
amounts deemed necessary or desirable, with the force and effect
stated in Minnesota Statutes, chapter 466.
Sec. 4. [GENERAL POWERS OF BOARD.]
Subdivision 1. [SCOPE.] The board has all powers necessary
or convenient to discharge the duties imposed upon it by law.
The powers include those specified in this section, but the
express grant or enumeration of powers does not limit the
generality or scope of the grant of powers contained in this
subdivision.
Subd. 2. [SUIT.] The board may sue or be sued.
Subd. 3. [CONTRACT.] The board may enter into any contract
necessary or proper for the exercise of its powers or the
accomplishment of its purposes.
Subd. 4. [GIFTS, GRANTS, LOANS.] The board may accept
gifts, apply for and accept grants or loans of money or other
property from the United States, the state, or any person for
any of its purposes, enter into any agreement required in
connection with them, and hold, use, and dispose of the money or
property in accordance with the terms of the gift, grant, loan,
or agreement relating to it. With respect to loans or grants of
funds or real or personal property or other assistance from any
state or federal government or its agency or instrumentality,
the board may contract to do and perform all acts and things
required as a condition or consideration for the gift, grant, or
loan pursuant to state or federal law or regulations, whether or
not included among the powers expressly granted to the board in
sections 1 to 19.
Subd. 5. [COOPERATIVE ACTION.] The board may act under
Minnesota Statutes, section 471.59, or any other appropriate law
providing for joint or cooperative action between governmental
units.
Subd. 6. [STUDIES AND INVESTIGATIONS.] The board may
conduct research studies and programs, collect and analyze data,
prepare reports, maps, charts, and tables, and conduct all
necessary hearings and investigations in connection with the
design, construction, and operation of the district disposal
system.
Subd. 7. [EMPLOYEES, TERMS.] The board may employ on terms
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 amounts it
deems necessary against liability of the board or its officers
or both, for personal injury or death and property damage or
destruction, with the force and effect stated in Minnesota
Statutes, chapter 466, and against risks of damage to or
destruction of any of its facilities, equipment, or other
property as it deems necessary.
Subd. 8. [PROPERTY RIGHTS, POWERS.] The board may 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 interceptor,
treatment works, or water facility determined to be necessary or
convenient for the collection and disposal of sewage in the
district. Any local governmental unit and the commissioners of
transportation and natural resources are authorized to convey to
or permit the use of any of the above-mentioned facilities owned
or controlled by it, by the board, subject to the rights of the
holders of any bonds issued with respect to those facilities,
with or without compensation, without an election or approval by
any other governmental unit or agency. All powers conferred by
this subdivision may be exercised both within or without the
district as may be necessary for the exercise by the board of
its powers or the accomplishment of its purposes. The board may
hold, lease, convey, or otherwise dispose of the above-mentioned
property for its purposes upon the terms and in the manner it
deems advisable. Unless otherwise provided, the right to
acquire lands and property rights by condemnation may be
exercised only in accordance with Minnesota Statutes, sections
117.011 to 117.232, and applies to any property or interest in
the property owned by any local governmental unit. Property
devoted to an actual public use at the time, or held to be
devoted to such a use within a reasonable time, must not be so
acquired unless a court of competent jurisdiction determines
that the use proposed by the board is paramount to the existing
use. Except in the case of property in actual public use, the
board may take possession of any property on which condemnation
proceedings have been commenced at any time after the issuance
of a court order appointing commissioners for its condemnation.
Subd. 9. [RELATIONSHIP TO OTHER PROPERTIES.] The board may
construct or maintain its systems or facilities in, along, on,
under, over, or through public waters, streets, bridges,
viaducts, and other public rights-of-way without first obtaining
a franchise from a county or municipality having jurisdiction
over them. However, the facilities must be constructed and
maintained in accordance with the ordinances and resolutions of
the county or municipality relating to constructing, installing,
and maintaining similar facilities on public properties and must
not unnecessarily obstruct the public use of those rights-of-way.
Subd. 10. [DISPOSAL OF PROPERTY.] The board may sell,
lease, or otherwise dispose of any real or personal property
acquired by it which is no longer required for accomplishment of
its purposes. The property may be sold in the manner provided
by Minnesota Statutes, section 469.065, insofar as practical.
The board may give notice of sale as it deems appropriate. When
the board determines that any property or any part of the
district disposal system acquired from a local governmental unit
without compensation is no longer required but is required as a
local facility by the governmental unit from which it was
acquired, the board may by resolution transfer it to that
governmental unit.
Subd. 11. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The
board may contract with the United States or any agency thereof,
any state or agency thereof, or any regional public planning
body in the state with jurisdiction over any part of the
district, or any other municipal or public corporation, or
governmental subdivision or agency or political subdivision in
any state, for the joint use of any facility owned by the board
or such entity, for the operation by that entity of any system
or facility of the board, or for the performance on the board's
behalf of any service, including but not limited to planning, on
terms as may be agreed upon by the contracting parties. Unless
designated by the board as a local water and sanitary sewer
facility, any treatment works or interceptor jointly used, or
operated on behalf of the board, as provided in this
subdivision, is deemed to be operated by the board for purposes
of including those facilities in the district disposal system.
Sec. 5. [COMPREHENSIVE PLAN.]
Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall
adopt a comprehensive plan for the collection, treatment, and
disposal of sewage in the district for a designated period the
board deems proper and reasonable. The board shall prepare and
adopt subsequent comprehensive plans for the collection,
treatment, and disposal of sewage in the district for each
succeeding designated period as the board deems proper and
reasonable. All comprehensive plans of the district shall be
subject to the planning and zoning authority of St. Louis county
and in conformance with all planning and zoning ordinances of
St. Louis county. The first plan, as modified by the board, and
any subsequent plan shall take into account the preservation and
best and most economic use of water and other natural resources
in the area; the preservation, use, and potential for use of
lands adjoining waters of the state to be used for the disposal
of sewage; and the impact the disposal system will have on
present and future land use in the area affected. In no case
shall the comprehensive plan provide for more than 325
connections to the disposal system. All connections must be
charged a full assessment. Connections made after the initial
assessment period ends must be charged an amount equal to the
initial assessment plus an adjustment for inflation and plus any
other charges determined to be reasonable and necessary by the
board. Deferred assessments may be permitted, as provided for
in Minnesota Statutes, chapter 429. The plans shall include the
general location of needed interceptors and treatment works, a
description of the area that is to be served by the various
interceptors and treatment works, a long-range capital
improvements program, and any other details as the board deems
appropriate. In developing the plans, the board shall consult
with persons designated for the purpose by governing bodies of
any governmental unit within the district to represent the
entities and shall consider the data, resources, and input
offered to the board by the entities and any planning agency
acting on behalf of one or more of the entities. Each plan,
when adopted, must be followed in the district and may be
revised as often as the board deems necessary.
Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting
any subsequent comprehensive plan, the board shall hold a public
hearing on the proposed plan at a time and place in the district
that it selects. The hearing may be continued from time to
time. Not less than 45 days before the hearing, the board shall
publish notice of the hearing in a newspaper having general
circulation in the district, stating the date, time, and place
of the hearing, and the place where the proposed plan may be
examined by any interested person. At the hearing, all
interested persons must be permitted to present their views on
the plan.
Sec. 6. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL
ASSESSMENTS.]
The central iron range sanitary sewer board, in order to
implement the powers granted under sections 1 to 19 to
establish, maintain, and administer the central iron range
sanitary sewer district, may issue obligations and impose
special assessments against benefited property within the limits
of the district benefited by facilities constructed under
sections 1 to 19 in the manner provided for local governments by
Minnesota Statutes, chapter 429.
Sec. 7. [SYSTEM EXPANSION; APPLICATION TO CITIES.]
The authority of the sanitary sewer board to establish a
sewer system under this section extends to areas within the
central iron range sanitary sewer district organized into cities
when requested by resolution of the governing body of the
affected city or when ordered by the Minnesota pollution control
agency after notice and hearing. For the purpose of any
petition filed or special assessment levied with respect to any
system, the entire area to be served within a city must be
treated as if it were owned by a single person, and the
governing body shall exercise all the rights and be subject to
all the duties of an owner of the area, and shall have power to
provide for the payment of all special assessments and other
charges imposed upon the area with respect to the system by the
appropriation of money, the collection of service charges, or
the levy of taxes, which shall be subject to no limitation of
rate or amount.
Sec. 8. [SEWAGE COLLECTION AND DISPOSAL; POWERS.]
Subdivision 1. [POWERS.] In addition to all other powers
conferred upon the board in sections 1 to 19, it has the powers
specified in this section.
Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may
discharge the effluent from any treatment works operated by it
into any waters of the state, subject to approval of the agency
if required and in accordance with any effluent or water quality
standards lawfully adopted by the agency, any interstate agency,
or any federal agency having jurisdiction.
Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] The board may
require any person or local governmental unit to provide for the
discharge of any sewage, directly or indirectly, into the
district disposal system, or to connect any disposal system or a
part of it with the district disposal system wherever reasonable
opportunity for connection is provided; may regulate the manner
in which the connections are made; may require any person or
local governmental unit discharging sewage into the disposal
system to provide preliminary treatment for it; may prohibit the
discharge into the district disposal system of any substance
that it determines will or may be harmful to the system or any
persons operating it; and may require any local governmental
unit to discontinue the acquisition, betterment, or operation of
any facility for the unit's disposal system wherever and so far
as adequate service is or will be provided by the district
disposal system.
Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH
APPLICABLE REGULATIONS.] Any charges, connection fees, or other
cost-recovery techniques imposed on persons discharging sewage
directly or indirectly into the district disposal system must
comply with applicable state and federal law, including state
and federal regulations governing grant applications.
Sec. 9. [BUDGET.]
(a) The board shall prepare and adopt, on or before October
1, 2002, and each year thereafter, a budget showing for the
following calendar year or other fiscal year determined by the
board, sometimes referred to in sections 1 to 19 as the budget
year, estimated receipts of money from all sources, including
but not limited to payments by each local governmental unit,
federal or state grants, taxes on property, and funds on hand at
the beginning of the year, and estimated expenditures for:
(1) costs of operation, administration, and maintenance of
the district disposal system;
(2) cost of acquisition and betterment of the district
disposal system; and
(3) debt service, including principal and interest, on
general obligation bonds and certificates issued pursuant to
section 13, and any money judgments entered by a court of
competent jurisdiction.
(b) Expenditures within these general categories, and any
other categories as the board may from time to time determine,
must be itemized in detail as the board prescribes. The board
and its officers, agents, and employees must not spend money for
any purpose other than debt service without having set forth the
expense in the budget nor in excess of the amount set forth in
the budget for it. No obligation to make an expenditure of the
above-mentioned type is enforceable except as the obligation of
the person or persons incurring it. The board may amend the
budget at any time by transferring from one purpose to another
any sums except money for debt service and bond proceeds or by
increasing expenditures in any amount by which actual cash
receipts during the budget year exceed the total amounts
designated in the original budget. The creation of any
obligation under section 13, or the receipt of any federal or
state grant is a sufficient budget designation of the proceeds
for the purpose for which it is authorized, and of the tax or
other revenue pledged to pay the obligation and interest on it,
whether or not specifically included in any annual budget.
Sec. 10. [ALLOCATION OF COSTS.]
Subdivision 1. [DEFINITION OF CURRENT COSTS.] The
estimated cost of administration, operation, maintenance, and
debt service of the district disposal system to be paid by the
board in each fiscal year and the estimated costs of acquisition
and betterment of the system that are to be paid during the year
from funds other than state or federal grants and bond proceeds
and all other previously unallocated payments made by the board
pursuant to sections 1 to 19 to be allocated in the fiscal year
are referred to as current costs and must be allocated by the
board as provided in subdivision 2 in the budget for that year.
Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current
costs must be allocated in the district on an equitable basis as
the board may determine by resolution to be in the best
interests of the district. The adoption or revision of any
method of allocation used by the board must be by the
affirmative vote of at least two-thirds of the members of the
board.
Sec. 11. [TAX LEVIES.]
To accomplish any duty imposed on it the board may, in
addition to the powers granted in sections 1 to 19 and in any
other law or charter, exercise the powers granted any
municipality by Minnesota Statutes, chapters 117, 412, 429, 475,
sections 115.46, 444.075, and 471.59, with respect to the area
in the district. The board may levy taxes upon all taxable
property in the district for all or a part of the amount payable
to the board, pursuant to section 10, to be assessed and
extended as a tax upon that taxable property by the county
auditor for the next calendar year, free from any limit of rate
or amount imposed by law or charter. The tax must be collected
and remitted in the same manner as other general taxes.
Sec. 12. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.]
Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC
PROJECT.] Before the board orders any project involving the
acquisition or betterment of any interceptor or treatment works,
all or a part of the cost of which will be allocated pursuant to
section 10 as current costs, the board must hold a public
hearing on the proposed project. The hearing must be held
following two publications in a newspaper having general
circulation in the district, stating the time and place of the
hearing, the general nature and location of the project, the
estimated total cost of acquisition and betterment, that portion
of costs estimated to be paid out of federal and state grants,
and that portion of costs estimated to be allocated. The
estimates must be the best available at the time of the meeting
and if costs exceed the estimate, the project cannot proceed
until an additional public hearing is held, with notice as
required at the initial meeting. The two publications must be a
week apart and the hearing at least three days after the last
publication. Not less than 45 days before the hearing, notice
of the hearing must also be mailed to each clerk of all local
governmental units in the district, but failure to give mailed
notice or any defects in the notice does not invalidate the
proceedings. The project may include all or part of one or more
interceptors or treatment works. A hearing must not be held on
a project unless the project is within the area covered by the
comprehensive plan adopted by the board under section 5, except
that the hearing may be held simultaneously with a hearing on a
comprehensive plan. A hearing is not required with respect to a
project, no part of the costs of which are to be allocated as
the current costs of acquisition, betterment, and debt service.
Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the
board proposes to assess against benefited property within the
district all or any part of the allocable costs of the project
as provided in subdivision 5, the board shall, not less than two
weeks before the hearing provided for in subdivision 1, cause
mailed notice of the hearing to be given to the owner of each
parcel within the area proposed to be specially assessed and
shall also give two weeks' published notice of the hearing. The
notice of hearing must contain the same information provided in
the notice published by the board pursuant to subdivision 1, and
a description of the area proposed to be assessed. For the
purpose of giving mailed notice, owners are those shown to be on
the records of the county auditor or, in any county where tax
statements are mailed by the county treasurer, on the records of
the county treasurer; but other appropriate records may be used
for this purpose. For properties that are tax exempt or subject
to taxation on a gross earnings basis and not listed on the
records of the county auditor or the county treasurer, the
owners must be ascertained by any practicable means and mailed
notice given them as herein provided. Failure to give mailed
notice or any defects in the notice does not invalidate the
proceedings of the board.
Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before
adoption of the resolution calling for a hearing under this
section, the board shall secure from the district engineer or
some other competent person of the board's selection a report
advising it in a preliminary way as to whether the proposed
project is feasible and whether it should be made as proposed or
in connection with some other project and the estimated costs of
the project as recommended. No error or omission in the report
invalidates the proceeding. The board may also take other steps
before the hearing, as will in its judgment provide helpful
information in determining the desirability and feasibility of
the project, including but not limited to preparation of plans
and specifications and advertisement for bids on them. The
hearing may be adjourned from time to time and a resolution
ordering the project may be adopted at any time within six
months after the date of hearing. In ordering the project the
board may reduce but not increase the extent of the project as
stated in the notice of hearing and shall find that the project
as ordered is in accordance with the comprehensive plan and
program adopted by the board pursuant to section 5.
Subd. 4. [EMERGENCY ACTION.] If the board by resolution
adopted by the affirmative vote of not less than two-thirds of
its members determines that an emergency exists requiring the
immediate purchase of materials or supplies or the making of
emergency repairs, it may order the purchase of those supplies
and materials and the making of the repairs before any hearing
required under this section. The board must set as early a date
as practicable for the hearing at the time it declares the
emergency. All other provisions of this section must be
followed in giving notice of and conducting the hearing.
Nothing in this subdivision prevents the board or its agents
from purchasing maintenance supplies or incurring maintenance
costs without regard to the requirements of this section.
Subd. 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The
board may specially assess all or any part of the costs of
acquisition and betterment as provided in this subdivision, of
any project ordered under this section. The special assessments
must be levied in accordance with Minnesota Statutes, sections
429.051 to 429.081, except as otherwise provided in this
subdivision. No other provisions of Minnesota Statutes, chapter
429, apply. For purposes of levying the special assessments,
the hearing on the project required in subdivision 1 serves as
the hearing on the making of the original improvement provided
for by Minnesota Statutes, section 429.051. The area assessed
may be less than but may not exceed the area proposed to be
assessed as stated in the notice of hearing on the project
provided for in subdivision 2.
Sec. 13. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.]
Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF
INDEBTEDNESS.] At any time after adoption of its annual budget
and in anticipation of the collection of tax and other revenues
estimated and set forth by the board in the budget, except in
the case of deficiency taxes levied under this subdivision and
taxes levied for the payment of certificates issued under
subdivision 2, the board may, by resolution, authorize the
issuance, negotiation, and sale, in accordance with subdivision
4 in the form and manner and upon terms it determines, of its
negotiable general obligation certificates of indebtedness in
aggregate principal amounts not exceeding 50 percent of the
total amount of tax collections and other revenues, and maturing
not later than three months after the close of the budget year
in which issued. The proceeds of the sale of the certificates
must be used solely for the purposes for which the tax
collections and other revenues are to be expended under the
budget.
All the tax collections and other revenues included in the
budget for the budget year, after the expenditure of the tax
collections and other revenues in accordance with the budget,
must be irrevocably pledged and appropriated to a special fund
to pay the principal and interest on the certificates when due.
If for any reason the tax collections and other revenues are
insufficient to pay the certificates and interest when due, the
board shall levy a tax in the amount of the deficiency on all
taxable property in the district and shall appropriate this
amount when received to the special fund.
Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in
any budget year the receipts of tax and other revenues should
for some unforeseen cause become insufficient to pay the board's
current expenses, or if any public emergency should subject it
to the necessity of making extraordinary expenditures, the board
may by resolution authorize the issuance, negotiation, and sale,
in accordance with subdivision 4 in the form and manner and upon
the terms and conditions it determines, of its negotiable
general obligation certificates of indebtedness in an amount
sufficient to meet the deficiency. The board shall levy on all
taxable property in the district a tax sufficient to pay the
certificates and interest on the certificates and shall
appropriate all collections of the tax to a special fund created
for the payment of the certificates and the interest on them.
Certificates issued under this subdivision mature not later than
April 1 in the year following the year in which the tax is
collectible.
Subd. 3. [GENERAL OBLIGATION BONDS.] The board may by
resolution authorize the issuance of general obligation bonds
for the acquisition or betterment of any part of the district
disposal system, including but without limitation the payment of
interest during construction and for a reasonable period
thereafter, or for the refunding of outstanding bonds,
certificates of indebtedness, or judgments. The board shall
pledge its full faith and credit and taxing power for the
payment of the bonds and shall provide for the issuance and sale
and for the security of the bonds in the manner provided in
Minnesota Statutes, chapter 475. The board has the same powers
and duties as a municipality issuing bonds under that law,
except that no election is required and the debt limitations of
Minnesota Statutes, chapter 475, do not apply to the bonds. The
board may also pledge for the payment of the bonds and deduct
from the amount of any tax levy required under Minnesota
Statutes, section 475.61, subdivision 1, and any revenues
receivable under any state and federal grants anticipated by the
board and may covenant to refund the bonds if and when and to
the extent that for any reason the revenues, together with other
funds available and appropriated for that purpose, are not
sufficient to pay all principal and interest due or about to
become due, provided that the revenues have not been anticipated
by the issuance of certificates under subdivision 1.
Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.]
Certificates issued under subdivisions 1 and 2 may be issued and
sold by negotiation, without public sale, and may be sold at a
price equal to the percentage of the par value of the
certificates, plus accrued interest, and bearing interest at the
rate determined by the board. An election is not required to
authorize the issuance of the certificates. The certificates
must bear the same rate of interest after maturity as before and
the full faith and credit and taxing power of the board must be
pledged to the payment of the certificates.
Sec. 14. [DEPOSITORIES.]
The board shall designate one or more national or state
banks, or trust companies authorized to do a banking business,
as official depositories for money of the board, and shall
require the treasurer to deposit all or a part of the money in
those institutions. The designation must be in writing and set
forth all the terms and conditions upon which the deposits are
made, and must be signed by the chair and treasurer and made a
part of the minutes of the board.
Sec. 15. [MONEY, ACCOUNTS, AND INVESTMENTS.]
Subdivision 1. [RECEIPT AND APPLICATION.] Money received
by the board must be deposited or invested by the treasurer and
disposed of as the board may direct in accordance with its
budget; provided that any money that has been pledged or
dedicated by the board to the payment of obligations or interest
on the obligations or expenses incident thereto, or for any
other specific purpose authorized by law, must be paid by the
treasurer into the fund to which it has been pledged.
Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer
shall establish funds and accounts as may be necessary or
convenient to handle the receipts and disbursements of the board
in an orderly fashion.
(b) The funds and accounts must be audited annually by a
certified public accountant at the expense of the district.
Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in
those funds and accounts may be deposited in the official
depositories of the board or invested as provided in this
subdivision. Any amount not currently needed or required by law
to be kept in cash on deposit may be invested in obligations
authorized for the investment of municipal sinking funds by
Minnesota Statutes, chapter 118A. The money may also be held
under certificates of deposit issued by any official depository
of the board.
Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds
issued by the board for the acquisition and betterment of the
district disposal system, and the use, other than investment, of
all money on hand in any sinking fund or funds of the board, is
governed by the provisions of Minnesota Statutes, chapter 475,
the provisions of sections 1 to 19, and the provisions of
resolutions authorizing the issuance of the bonds. When
received, the bond proceeds must be transferred to the treasurer
of the board for safekeeping, investment, and payment of the
costs for which they were issued.
Subd. 5. [AUDIT.] The board shall provide for and pay the
cost of an independent annual audit of its official books and
records by the state auditor or a public accountant authorized
to perform that function under Minnesota Statutes, chapter 6.
Sec. 16. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES
OUTSIDE THE JURISDICTION OF THE BOARD.]
(a) The board may contract with the United States or any
agency of the federal government, any state or its agency, or
any municipal or public corporation, governmental subdivision or
agency or political subdivision in any state, outside the
jurisdiction of the board, for furnishing services to those
entities, including but not limited to planning for and the
acquisition, betterment, operation, administration, and
maintenance of any or all interceptors, treatment works, and
local water and sanitary sewer facilities. The board may
include as one of the terms of the contract that the entity must
pay to the board an amount agreed upon as a reasonable estimate
of the proportionate share properly allocable to the entity of
costs of acquisition, betterment, and debt service previously
allocated in the district. When payments are made by entities
to the board, they must be applied in reduction of the total
amount of costs thereafter allocated in the district, on an
equitable basis as the board deems to be in the best interests
of the district, applying so far as practicable and appropriate
the criteria set forth in section 10, subdivision 2. A
municipality in the state of Minnesota may enter into a contract
and perform all acts and things required as a condition or
consideration therefor consistent with the purposes of sections
1 to 19, whether or not included among the powers otherwise
granted to the municipality by law or charter.
(b) The board shall contract with a qualified entity to
make necessary inspections of the district facilities, and to
otherwise process or assist in processing any of the work of the
district.
Sec. 17. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES,
AND EQUIPMENT.]
When the board orders a project involving the acquisition
or betterment of a part of the district disposal system, it
shall cause plans and specifications of the project to be made,
or if previously made, to be modified, if necessary, and to be
approved by the agency if required, and after any required
approval by the agency, one or more contracts for work and
materials called for by the plans and specifications may be
awarded as provided in Minnesota Statutes, section 471.345.
Sec. 18. [PROPERTY EXEMPT FROM TAXATION.]
Any properties, real or personal, owned, leased,
controlled, used, or occupied by the sanitary sewer board for
any purpose under sections 1 to 19 are declared to be acquired,
owned, leased, controlled, used, and occupied for public,
governmental, and municipal purposes, and are exempt from
taxation by the state or any political subdivision of the
state. The properties are subject to special assessments levied
by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received
by the properties from the improvement.
Sec. 19. [RELATION TO EXISTING LAWS.]
Sections 1 to 19 must be given full effect notwithstanding
the provisions of any law or charter inconsistent with sections
1 to 19. The powers conferred on the board under sections 1 to
19 do not in any way diminish or supersede the powers conferred
on the agency by Minnesota Statutes, chapters 115 to 116.
Sec. 20. [LOCAL APPROVAL.]
This article takes effect the day after each of the
governing bodies of each of the local governmental units has
complied with Minnesota Statutes, section 645.021, subdivision 3.
Presented to the governor May 17, 2002
Signed by the governor May 20, 2002, 10:15 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes