1.1                          A bill for an act 
  1.2             relating to lake improvement districts; modifying 
  1.3             provisions relating to lake improvement districts; 
  1.4             amending Minnesota Statutes 1998, sections 103B.535, 
  1.5             103B.545, subdivision 1; 103B.551, subdivision 1; 
  1.6             103B.555, subdivision 1; and 103B.571, subdivision 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 103B.535, is 
  1.9   amended to read: 
  1.10     103B.535 [ORDER ESTABLISHING DISTRICT.] 
  1.11     An order by the county board or joint county authority 
  1.12  establishing a district must state the:  
  1.13     (1) name of the district; 
  1.14     (2) boundaries of the district, which are encouraged to be 
  1.15  as consistent as practical with natural hydrologic boundaries; 
  1.16     (3) water and related land resources management programs 
  1.17  and services to be undertaken; 
  1.18     (4) manner of financing programs and services; and 
  1.19     (5) number, qualifications, terms of office, and method of 
  1.20  election, removal, and filling of vacancies of the board of 
  1.21  directors, including a method for property owners not present at 
  1.22  the annual meeting to participate in the election of the 
  1.23  district board.  
  1.24     Sec. 2.  Minnesota Statutes 1998, section 103B.545, 
  1.25  subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [PETITION.] Twenty-six percent of the 
  2.1   property owners within the lake improvement district ~~established~~ 
  2.2   proposed by the board or a joint county authority on its own 
  2.3   initiative under section 103B.515, by petition under section 
  2.4   103B.521, or by the commissioner on their authority under 
  2.5   section 103B.531, may petition for a referendum on establishing 
  2.6   the district before the effective date of its establishment.  
  2.7   After receiving the petition, the county board or joint county 
  2.8   authority must issue an order staying the establishment until a 
  2.9   referendum vote is taken of all qualified voters and property 
  2.10  owners within the proposed lake improvement district.  
  2.11     Sec. 3.  Minnesota Statutes 1998, section 103B.551, 
  2.12  subdivision 1, is amended to read: 
  2.13     Subdivision 1.  [MEMBERSHIP.] After a lake improvement 
  2.14  district is established, the county board or joint county 
  2.15  authority shall appoint persons to serve as an initial board of 
  2.16  directors for the district.  Subsequent board members shall be 
  2.17  elected by persons owning property in the district at the annual 
  2.18  meeting of the district.  The number, qualifications, terms of 
  2.19  office, and method of election, removal, and filling of 
  2.20  vacancies of directors shall be as provided in the order 
  2.21  creating the board of directors.  The initial and all subsequent 
  2.22  boards of directors must include persons owning property within 
  2.23  the district, and a majority of the directors must be residents 
  2.24  of the district.  
  2.25     Sec. 4.  Minnesota Statutes 1998, section 103B.555, 
  2.26  subdivision 1, is amended to read: 
  2.27     Subdivision 1.  [REVENUE.] The county board or joint county 
  2.28  authority may undertake projects of improvement consistent with 
  2.29  purposes of the district after seeking other sources of 
  2.30  funding.  To finance projects and services of the district, the 
  2.31  county board or joint county authority may, only after seeking 
  2.32  other sources of funding:  
  2.33     (1) assess the costs of the projects upon benefited 
  2.34  property within the district in the manner provided under 
  2.35  chapter 429; 
  2.36     (2) impose service charges on the users of lake improvement 
  3.1   district services within the district; 
  3.2      (3) issue obligations as provided in section 429.091; 
  3.3      (4) levy an ad valorem tax solely on property within the 
  3.4   lake improvement district, to be appropriated and expended 
  3.5   solely on projects of special benefit to the district; or 
  3.6      (5) impose or issue any combination of service charges, 
  3.7   special assessments, obligations, and taxes. 
  3.8      Sec. 5.  Minnesota Statutes 1998, section 103B.571, 
  3.9   subdivision 3, is amended to read: 
  3.10     Subd. 3.  [AGENDA.] (a) At the annual meeting the district 
  3.11  property owners present shall: 
  3.12     (1) elect one or more directors to fill any midterm 
  3.13  vacancies in the board of directors; 
  3.14     (2) approve a budget for the fiscal year; 
  3.15     (3) approve or disapprove proposed projects by the district 
  3.16  having a cost to the district in excess of $5,000; and 
  3.17     (4) take up and consider other business that comes before 
  3.18  them.  
  3.19     (b) At the annual meeting all district property owners, 
  3.20  including absent members as provided in the order establishing 
  3.21  the district, shall elect one or more directors for board 
  3.22  positions with expiring terms.