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    Subdivision 1. Employees, Social Security. A port authority may employ or contract for the
engineering, legal, technical, clerical, stenographic, accounting, and other assistance it considers
advisable. An employee of a port authority under this chapter is an "employee" under section
355.01, subdivision 4, and by appropriate action of the port authority is entitled to benefits under
that section.
    Subd. 2. Contracts. A port authority may contract to erect, repair, maintain or operate
docks, warehouses, terminals, elevators, or other structures on or in connection with property it
owns or controls. The authority may contract or arrange with the federal government, or any of
its departments, with persons, public corporations, the state, or any of its political subdivisions,
commissions, or agencies, for separate or joint action, on any matter related to using the authority's
powers or doing its duties. The authority may contract to purchase and sell real and personal
property. An obligation or expense must not be incurred unless existing appropriations together
with the reasonably expected revenue of the port authority from other sources are sufficient to
discharge the obligation or pay the expense when due. The state and its municipal subdivisions
are not liable on the obligations. Notwithstanding section 16A.695, for leases or management
contracts entered into with respect to property acquired or bettered with the proceeds of state
general obligation bonds: (1) a seaway port authority may meet its obligations and expenses of
operating and reinvest in capital improvements by retaining revenues received under the leases
or management contracts and is not required to pay lease or management contract revenues to
the commissioner of finance; and (2) the lease or management contract entered into by a seaway
port authority must not be canceled or terminated as a result of changes or termination by the
state in the governmental program of the seaway port authority unless compensation is paid
as provided by law.
    Subd. 3. Duluth; audits. A seaway port authority may employ a certified public accountant
to annually examine and audit its books. The report of the exam and audit must be sent to the
state auditor. The state auditor shall review the report and may accept it or in the public interest
examine the books further.
    Subd. 4. Compliance examinations. At the request of the city or upon the auditor's initiative,
the state auditor may make a legal compliance examination of the authority for that city. Each
authority examined must pay the total cost of the examination, including the salaries paid to the
examiners while actually engaged in making the examination. The state auditor may bill monthly
or at the completion of the audit. All collections received must be deposited in the general fund.
    Subd. 5. Audits. The financial statements of the authority must be prepared, audited, filed,
and published or posted in the manner required for the financial statements of the city that
established the authority. The financial statements must permit comparison and reconciliation
with the city's accounts and financial reports. The report must be filed with the state auditor by
June 30 of each year. The auditor shall review the report and may accept it or, in the public
interest, audit the books of the authority.
History: 1987 c 291 s 57; 1989 c 335 art 4 s 87; 1996 c 452 s 35

Official Publication of the State of Minnesota
Revisor of Statutes