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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.