2007 Minnesota Statutes

CHAPTER 471. MUNICIPAL RIGHTS, POWERS, DUTIES

471.01 [Repealed, 1976 c 44 s 70]

471.02 [Repealed, 1976 c 44 s 70]

471.03 [Repealed, 1976 c 44 s 70]

471.04 [Repealed, 1976 c 44 s 70]

471.05 [Repealed, 1976 c 44 s 70]

471.06 [Repealed, 1976 c 44 s 70]

471.07 [Repealed, 1976 c 44 s 70]

471.08 [Repealed, 1976 c 44 s 70]

471.09 [Repealed, 1976 c 44 s 70]

471.10 [Repealed, 1976 c 44 s 70]

471.11 [Repealed, 1976 c 44 s 70]

471.12 [Repealed, 1976 c 44 s 70]

471.13 [Repealed, 1976 c 44 s 70]

471.14 [Repealed, 1976 c 44 s 70]

471.141 APPLICATION OF LAWS 2005, CHAPTER 56, TERMINOLOGY CHANGES.
State agencies shall use the terminology changes specified in Laws 2005, chapter 56, section
1, when printed material and signage are replaced and new printed material and signage are
obtained. State agencies do not have to replace existing printed material and signage to comply
with Laws 2005, chapter 56, sections 1 and 2. Language changes made according to Laws 2005,
chapter 56, sections 1 and 2, shall not expand or exclude eligibility to services.
History: 2005 c 56 s 3

471.15 RECREATIONAL FACILITIES BY MUNICIPALITY, VETERANS; BONDS.
(a) Any home rule charter or statutory city or any town, county, school district, or any board
thereof, or any incorporated post of the American Legion or any other incorporated veterans'
organization, may expend not to exceed $800 in any one year, for the purchase of awards and
trophies and may operate a program of public recreation and playgrounds; acquire, equip, and
maintain land, buildings, or other recreational facilities, including an outdoor or indoor swimming
pool; and expend funds for the operation of such program pursuant to the provisions of sections
471.15 to 471.19. The city, town, county or school district may issue bonds pursuant to chapter
475 for the purpose of carrying out the powers granted by this section. The city, town, county or
school district may operate the program and facilities directly or establish one or more recreation
boards to operate all or various parts of them.
(b) A home rule charter or statutory city, a county, or a town may expend funds for the
purpose of supporting student academic or extracurricular activities sponsored by the local
school district.
History: (1933-9a) 1937 c 233 s 1; 1945 c 396 s 1; 1957 c 117 s 1; 1957 c 372 s 1; 1973 c
123 art 5 s 7; 1981 c 47 s 1; 2000 c 489 art 6 s 38

471.16 MAY ACT INDEPENDENTLY OR COOPERATIVELY.
    Subdivision 1. Includes nonprofits; delegation. Any city, however organized, or any town,
county, school district, or any board thereof, or any incorporated post of the American Legion or
any other incorporated veterans' organization, may operate such a program independently, or they
may cooperate among themselves or with any nonprofit organization in its conduct and in any
manner in which they may mutually agree; or they may delegate the operation of the program to a
recreation board created by one or more of them, and appropriate money voted for this purpose to
such board which may in turn support or cooperate with a nonprofit organization.
    Subd. 2. Levy for senior recreation. Notwithstanding the provisions of section 471.15, any
county may levy a tax to provide funds for the establishment or operation of recreational facilities
or programs for senior citizens either by such county or by any municipality, governmental
subdivision, school district or other organization or entity referred to in subdivision 1.
History: (1933-9b) 1937 c 233 s 2; 1945 c 396 s 2; 1957 c 17 s 1; 1957 c 499; 1967 c 496 s
1; 1971 c 808 s 1; 1973 c 123 art 5 s 7; 1973 c 583 s 33; 1978 c 764 s 125; 1995 c 256 s 16

471.17 LOCATION OF ACTIVITIES.
Any corporation, board, or body hereinbefore designated given charge of the recreation
program is authorized to conduct its activities on:
(1) property under its custody and management;
(2) other public property under the custody of any other public corporation, body, or board,
with the consent of such corporations, bodies, or boards;
(3) private property, with the consent of its owners; and
(4) shall have authority to accept gifts and bequests for the benefit of the recreational service
and employ directors and instructors of recreational work.
History: (1933-9c) 1937 c 233 s 3

471.18 EDUCATION COMMISSIONER TO ESTABLISH QUALIFICATIONS.
In all cases where school funds or property are utilized, the commissioner of education shall:
(1) establish minimum qualifications of local recreational directors and instructors;
(2) prepare or cause to be prepared, published, and distributed adequate and appropriate
manuals and other materials as it may deem necessary or suitable to carry out the provisions of
sections 471.15 to 471.19.
History: (1933-9d) 1937 c 233 s 4; 1998 c 398 art 5 s 55; 2003 c 130 s 12

471.19 RECREATION PROGRAM TO BE FOR EDUCATION PURPOSES.
The facilities of any school district, operating a recreation program pursuant to the provisions
of sections 471.15 to 471.19 shall be used primarily for the purpose of conducting the regular
school curriculum and related activities and the use of school facilities for recreational purposes
authorized by those sections shall be secondary.
History: (1933-9e) 1937 c 233 s 5

471.191 ACQUISITION OF FACILITIES BY CITY, SCHOOL DISTRICT.
    Subdivision 1. Lease to nonprofit. Any city operating a program of public recreation and
playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease, equip, and maintain
land, buildings, and other recreational facilities, including, but without limitation, outdoor or
indoor swimming pools, skating rinks and arenas, athletic fields, golf courses, marinas, concert
halls, museums, and facilities for other kinds of athletic or cultural participation, contests, and
exhibitions, together with related automobile parking facilities as defined in section 459.14, and
may expend funds for the operation of such program and borrow and expend funds for capital
costs thereof pursuant to the provisions of this section. A school district operating a program of
public recreation and playgrounds has the rights provided in this section. Any facilities to be
operated by a nonprofit corporation, as contemplated in section 471.16, may be leased to the
corporation upon such rentals and for such term, not exceeding 30 years, and subject to such other
provisions as may be agreed; including but not limited to provisions (a) permitting the lessee,
subject to whatever conditions are stated, to provide for the construction and equipment of the
facilities by any means available to it and in the manner determined by it, without advertisement
for bids as required for other municipal facilities, and (b) granting the lessee the option to renew
the lease upon such conditions and rentals, or to purchase the facilities at such price, as may be
agreed; provided that (c) any such lease shall require the lessee to pay net rentals sufficient to
pay the principal, interest, redemption premiums, and other expenses when due with respect to
all city bonds issued for the acquisition or betterment of the facilities, less such amount of taxes
and special assessments, if any, as may become payable in any year of the term of the lease, on
the land, building, or other facilities leased, and (d) no option shall be granted to purchase the
facilities at any time at a price less than the amount required to pay all principal and interest to
become due on such bonds to the earliest date or dates on which they may be paid and redeemed,
and all redemption premiums and other expenses of such payment and redemption.
    Subd. 2. Bonds. Any such city may issue bonds pursuant to chapter 475, for the acquisition
and betterment of land, buildings, and facilities for the purpose of carrying out the powers granted
by this section. Such bonds, unless authorized as general obligations of the issuer pursuant to
approval of the electors or pursuant to another law or charter provision permitting such issuance
without an election, shall be payable solely from the income of land, buildings, and facilities used
or useful for the operation of the program, but may be secured by a pledge to the bondholders,
or to a trustee, of all income and revenues of whatsoever nature derived from any such land,
buildings, and facilities, as a first charge on the gross revenues thereof to the extent necessary
to pay the bonds and interest thereon when due and to accumulate and maintain an additional
reserve for that purpose in an amount equal to the total amount of payments to become due in any
fiscal year. In this event the governing body of the issuer may by resolution or trust indenture
define the land, buildings, or facilities, the revenues of which are pledged, and establish covenants
and agreements to be made by the issuer for the security of the bonds, including a covenant that
the issuer will establish, maintain, revise when necessary, and collect charges for all services,
products, use, and occupancy of the land, buildings, and facilities, in the amounts and at the times
required to produce the revenues pledged, and also sufficient, with any other funds appropriated
by the governing body from time to time, to provide adequately for the operation and maintenance
of the land, buildings, and facilities. After the issuance of any bonds for which revenues are so
pledged, the governing body of the issuer shall provide in its budget each year for any anticipated
deficiency in the revenues available for such operation and maintenance. For this purpose any
issuer may levy a tax on the taxable property within its boundaries, in excess of taxes which may
otherwise be levied within charter limitations. The authority to levy additional taxes granted
herein shall not apply to cities or towns in which the net tax capacity consists in part of iron ore
or lands containing taconite or semitaconite.
    Subd. 3. Leasing terms. Any such city may acquire land, buildings, and facilities for the
purpose of carrying out the powers granted by this section under a lease agreement for a term
not exceeding 30 years, vesting title in the lessee upon the payment of all amounts due and the
performance of all covenants thereunder, provided that the rentals under any such lease agreement
shall be payable solely from the revenues of the leased property. The terms and conditions of
the lease agreement shall be established by resolution of the governing body of the lessee, and
may include a pledge to the lessor of all income and revenues of whatsoever nature derived from
the leased property, as a first charge on the gross revenues thereof to the extent necessary to
pay the rentals when due, and a covenant that the lessee will establish, maintain, revise when
necessary, and collect charges for all service, products, use, and occupancy of the leased property
in the amounts and at the times required to produce the revenues pledged, and also sufficient, with
any other funds appropriated by the governing body from time to time, to provide adequately for
the operation and maintenance of the property. From and after the execution of any such lease
agreement, the governing body of the lessee shall provide for any deficiencies in the revenues
available for operation and maintenance, to the same extent and in the same manner as provided
in subdivision 2. If such lease agreement is entered into with a nonprofit corporation as owner and
lessor, organized and existing under chapter 317A for the sole purpose of providing and leasing
such land, buildings, and facilities for public use and of conveying the same to the lessee when
all sums borrowed therefor have been repaid, such corporation shall be deemed to be a public
corporation, agency, and instrumentality of the city, and obligations incurred by it for this purpose,
together with the interest on such obligations, shall be exempt from taxation to the same extent
as obligations of the city. Any mortgage or trust indenture executed by such corporation for the
security of its obligations may provide for the segregation and payment of rentals and revenues of
land, buildings, and facilities directly by the lessee to the mortgagee or trustee, whether or not
such mortgagee or trustee is in possession under foreclosure proceedings or otherwise, and the
mortgage or trust indenture may be enforced by foreclosure and sale and by any other remedy
at law or in equity which is available in the event of default in payment of amounts due and
performance of covenants under any mortgage of real or personal property; provided that no such
mortgage or trust indenture shall impair the continued right of the lessee to the use and enjoyment
of the land, buildings, and facilities so long as the lessee is not in default in the payment of rentals
due and in the performance of covenants under the lease agreement.
    Subd. 4. Public property, purpose; conditions. Any and all properties acquired and used,
whether under lease or otherwise, by a city for the purposes authorized and contemplated in this
section shall be deemed and are declared to be public property exclusively used for a public
purpose and as such exempt from taxation, so long as and to the extent that such property is
devoted to said purposes and is not subleased to any private individual, association, or corporation
in connection with a business conducted for profit, for a term of three or more years. An agreement
whereby a city, as owner or lessee, employs a private individual, association, or corporation
to operate facilities for use of the public, for the purposes herein contemplated and subject to
regulation by the public owner or lessee, is not a sublease for the purpose of this subdivision.
    Subd. 5. Obligations, rentals, and securities issued distinguished. All obligations issued by
any city pursuant to this section are issued for the acquisition or betterment of revenue producing
public conveniences and are payable wholly from the income thereof, within the meaning of all
provisions of chapter 475. The rentals payable under a lease and the securities issued by the lessor
pursuant to subdivision 3 are not obligations within the meaning of chapter 475.
History: 1967 c 725 s 1; 1973 c 123 art 5 s 7; 1973 c 321 s 1; 1973 c 773 s 1; 1988 c 719
art 5 s 84; 1989 c 277 art 4 s 68; 1989 c 304 s 137; 1989 c 329 art 13 s 20; 1994 c 505 art
3 s 13; 1994 c 643 s 75; 1995 c 256 s 17,18

471.1911 VALIDATION OF SCHOOL DISTRICT AGREEMENTS.
Agreements entered into by school districts pursuant to the provisions of sections 471.15 to
471.191 or Laws 1967, chapter 33, prior to May 15, 1978, without a referendum, are not void
and are hereby validated.
History: 1978 c 764 s 126

471.192 [Repealed, 1973 c 445 s 3]

471.1921 [Repealed, 1994 c 505 art 3 s 17]

471.193 MUNICIPAL HERITAGE PRESERVATION.
    Subdivision 1. Policy. The legislature finds that the historical, architectural, archaeological,
engineering, and cultural heritage of this state is among its most important assets. Therefore, the
purpose of this section is to authorize local governing bodies to engage in a comprehensive
program of historic preservation, and to promote the use and conservation of historic properties
for the education, inspiration, pleasure, and enrichment of the citizens of this state.
    Subd. 2. Heritage preservation commissions. The governing body of a statutory or home
rule charter city, county, or town may establish a heritage preservation commission to preserve
and promote its historic resources according to this section.
    Subd. 3. Powers. The powers and duties of any commission established pursuant to this
section may include any power possessed by the political subdivision creating the commission,
but shall be those delegated or assigned by the ordinance establishing the commission. These
powers may include:
(1) the survey and designation of districts, sites, buildings, structures, and objects that are of
historical, architectural, archaeological, engineering, or cultural significance;
(2) the enactment of rules governing construction, alteration, demolition, and use, including
the review of building permits, and the adoption of other measures appropriate for the
preservation, protection, and perpetuation of designated properties and areas;
(3) the acquisition by purchase, gift, or bequest, of a fee or lesser interest, including
preservation restrictions, in designated properties and adjacent or associated lands which are
important for the preservation and use of the designated properties;
(4) requests to the political subdivision to use its power of eminent domain to maintain or
preserve designated properties and adjacent or associated lands;
(5) the sale or lease of air rights;
(6) the granting of use variations to a zoning ordinance;
(7) participation in the conduct of land use, urban renewal, and other planning processes
undertaken by the political subdivision creating the commission; and
(8) the removal of blighting influences, including signs, unsightly structures, and debris,
incompatible with the physical well-being of designated properties or areas.
No power shall be exercised by a commission which is contrary to state law or denied a
political subdivision by its charter or by law. Powers of a commission shall be exercised only in
the manner prescribed by ordinance and no action of a commission shall contravene any provision
of a municipal zoning or planning ordinance unless expressly authorized by ordinance.
    Subd. 4. Exclusion. If a commission is established by the city of St. Paul, it shall for the
purpose of this section exclude any jurisdiction over the Capitol Area as defined in section
15B.03, subdivision 1.
    Subd. 5. Commission members. Commission members must be persons with demonstrated
interest and expertise in historic preservation and must reside within the political subdivision
regulated by the ordinance establishing the commission. Every commission shall include, if
available, a member of a county historical society of a county in which the municipality is located.
    Subd. 6. Communication with the state historic preservation officer. Proposed site
designations and design guidelines must be sent to the state historic preservation officer at
the Minnesota Historical Society, who shall review and comment on the proposal within 60
days. By October 31 of each year, each commission shall submit an annual report to the state
historic preservation officer. The report must summarize the commission's activities, including
designations, reviews, and other activities during the previous 12 months.
History: 1971 c 128 s 1; 1973 c 123 art 5 s 7; 1985 c 77 s 1; 1989 c 9 s 2; 2003 c 17 s 2

471.195 UNCLAIMED PROPERTY; DISPOSAL.
(1) Any city may by ordinance provide for the custody and disposal of property lawfully
coming into its possession in the course of municipal operations and remaining unclaimed by
the owner. Such ordinance may provide for the sale of such property to the highest bidder at
public auction or sale or by a private sale through a nonprofit organization that has a significant
mission of community service, after the property has been in the possession of the municipality
for a period of at least 60 days. If the sale is to be by public auction, the city shall give ten days'
published notice describing the property found or recovered and to be sold, and specifying the
time and place of the sale. The notice must be published at least once in a legal newspaper
published in the city or, if there is none in the city, published in the county. Consistent with other
applicable statutory or charter provision, the ordinance shall designate the fund into which the
proceeds of any such sale shall be placed, subject to the right of the former owner to payment
of the sale price from the fund upon application and satisfactory proof of ownership within six
months of the sale or such longer period as provided by ordinance.
(2) This section does not limit the power of any municipality under any other statutory
or charter authority.
History: 1957 c 382 s 1,2; 1967 c 295 s 2; 1971 c 923 s 1; 1973 c 123 art 5 s 7; 1995 c 79 s 1

471.196    Subdivision 1.[Repealed, 1971 c 734 s 12; 1976 c 2 s 162]
    Subd. 2.[Repealed, 1971 c 734 s 12]

471.20 [Repealed, 1953 c 420 s 1]

471.21 [Repealed, 1953 c 420 s 1]

471.22 [Repealed, 1953 c 420 s 1]

471.23 [Repealed, 1953 c 420 s 1]

471.24 TOWNS, STATUTORY CITIES MAY JOIN TO KEEP UP CEMETERY.
Where a statutory city or town owns and maintains an established cemetery or burial
ground, either within or without the municipal limits, the statutory city or town may, by mutual
agreement with contiguous statutory cities and towns, each having a market value of not less
than $2,000,000, join together in the maintenance of such public cemetery or burial ground for
the use of the inhabitants of each of such municipalities; and each such municipality is hereby
authorized, by action of its council or governing body, to levy a tax or make an appropriation for
the annual support and maintenance of such cemetery or burial ground; provided, the amount thus
appropriated by each municipality shall not exceed a total of $10,000 in any one year.
History: (1933-64) 1931 c 262 s 1; 1945 c 213 s 1; 1957 c 75 s 1; 1963 c 609 s 1; 1969
c 506 s 1; 1973 c 123 art 5 s 7; 1980 c 356 s 1; 1985 c 52 s 1; 1988 c 719 art 5 s 84; 1989 c
329 art 13 s 20; 1990 c 480 art 9 s 20; 1994 c 505 art 4 s 6

471.25 [Repealed, 1980 c 356 s 2]

471.26 [Repealed, 1965 c 670 s 14]

471.27 [Repealed, 1965 c 670 s 14]

471.28 [Repealed, 1965 c 670 s 14]

471.29 [Repealed, 1965 c 670 s 14]

471.30 [Repealed, 1965 c 670 s 14]

471.31 [Repealed, 1965 c 670 s 14]

471.32 [Repealed, 1965 c 670 s 14]

471.323 [Repealed, 1965 c 670 s 14]

471.33 [Repealed, 1965 c 670 s 14]

471.34 [Repealed, 1959 c 261 s 4]

471.342 INFLOW AND INFILTRATION PROGRAM.
    Subdivision 1. City. In this section, "city" means a home rule charter or statutory city.
    Subd. 2. Inflow and infiltration. In this section, "inflow and infiltration" means water other
than wastewater that enters a sanitary sewer system, including sewer service connections, from
the ground through defective pipes, pipe joints, connections, or manholes, or from sources such
as, but not limited to, roof borders, cellar drains, yard drains, area drains, drains from springs and
swampy areas, manhole covers, cross connections between storm sewers, catch basins, cooling
towers, storm waters, surface runoff, street wastewaters, or drainage.
    Subd. 3. Program authority. A city may establish an inflow and infiltration prevention
program and provide loans and grants to property owners to assist the owners in financing the cost
of abating inflow and infiltration on their property.
    Subd. 4. Program guidelines. The city shall establish guidelines to govern the program.
The guidelines shall establish criteria for program eligibility and standards for compliance with
the program. Prior to adoption of the program guidelines, the city council must conduct a public
hearing on the proposed guidelines after giving at least ten days' published notice of the hearing.
    Subd. 5. Program financing. The city may finance the program with federal, state, private,
or city funds. City funds include, but are not limited to, general fund appropriations, sanitary or
storm sewer utility funds, and fees or charges.
History: 1996 c 317 s 1

471.345 UNIFORM MUNICIPAL CONTRACTING LAW.
    Subdivision 1. Municipality defined. For purposes of this section, "municipality" means a
county, town, city, school district or other municipal corporation or political subdivision of the
state authorized by law to enter into contracts.
    Subd. 2. Contract defined. A "contract" means an agreement entered into by a municipality
for the sale or purchase of supplies, materials, equipment or the rental thereof, or the construction,
alteration, repair or maintenance of real or personal property.
    Subd. 3. Contracts over $50,000. If the amount of the contract is estimated to exceed
$50,000, sealed bids shall be solicited by public notice in the manner and subject to the
requirements of the law governing contracts by the particular municipality or class thereof
provided that with regard to repairs and maintenance of ditches, bids shall not be required if the
estimated amount of the contract does not exceed the amount specified in section 103E.705,
subdivisions 5, 6, and 7 .
    Subd. 3a. Contracts over $50,000; best value alternative. As an alternative to the
procurement method described in subdivision 3, municipalities may award a contract for
construction, alteration, repair, or maintenance work to the vendor or contractor offering the best
value under a request for proposals as described in section 16C.28, subdivision 1, paragraph
(a), clause (2), and paragraph (c).
    Subd. 4. Contracts from $10,000 to $50,000. If the amount of the contract is estimated to
exceed $10,000 but not to exceed $50,000, the contract may be made either upon sealed bids or by
direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and
without advertising for bids or otherwise complying with the requirements of competitive bidding.
All quotations obtained shall be kept on file for a period of at least one year after receipt thereof.
    Subd. 4a. Contracts from $10,000 to $50,000; best value alternative. As an alternative
to the procurement method described in subdivision 4, municipalities may award a contract for
construction, alteration, repair, or maintenance work to the vendor or contractor offering the best
value under a request for proposals as described in section 16C.28, subdivision 1, paragraph
(a), clause (2), and paragraph (c).
    Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated to be
$10,000 or less, the contract may be made either upon quotation or in the open market, in the
discretion of the governing body. If the contract is made upon quotation it shall be based, so far
as practicable, on at least two quotations which shall be kept on file for a period of at least one
year after their receipt. Alternatively, municipalities may award a contract for construction,
alteration, repair, or maintenance work to the vendor or contractor offering the best value under a
request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and
paragraph (c).
    Subd. 5a. County or town rental contracts. If the amount of a county or town contract for
the rental of equipment is estimated to be $60,000 or less, the contract may, in the discretion of
the county or town board, be made by direct negotiation by obtaining two or more quotations
for the rental when possible and without advertising for bids or otherwise complying with the
requirements of competitive bidding. All quotations shall be kept on file for a period of at least
one year after their receipt.
    Subd. 5b. Water tank service contracts. A municipality may, by direct negotiation or
through the solicitation of requests for proposals, enter into a multiyear professional service
contract for the engineering, repair, and maintenance of a water storage tank and appurtenant
facilities owned, controlled, or operated by the municipality, if the contract contains:
(1) a provision that the municipality is not required to make total payments in a single year
that exceed the water utility charges received by the municipality for that year;
(2) a provision requiring that the work performed be done under the review of a professional
engineer licensed in the state of Minnesota attesting that the work will be performed in compliance
with all applicable codes and engineering standards; and
(3) a provision that if, at the commencement of the contract, the water tank or appurtenant
facilities require engineering, repair, or service in order to bring the water tank or facilities into
compliance with federal, state, or local requirements, the party contracting with the municipality
is responsible for providing the engineering, repair, or service. The costs to bring the water tank or
facilities into compliance must be itemized separately and charged to the municipality in payments
spread over a period of not less than three years from the commencement of the contract.
    Subd. 6. Applicability of other laws. The purpose of this section is to establish for all
municipalities, uniform dollar limitations upon contracts which shall or may be entered into on
the basis of competitive bids, quotations or purchase or sale in the open market. To the extent
inconsistent with this purpose, all laws governing contracts by a particular municipality or class
thereof are superseded. In all other respects such laws shall continue applicable.
    Subd. 7. Minimum labor standards. Nothing in this section shall be construed to prohibit
any municipality from adopting rules, regulations, or ordinances which establish the prevailing
wage rate as defined in section 177.42, as a minimum standard for wages and which establish
the hours and working conditions prevailing for the largest number of workers engaged in the
same class of labor within the area as a minimum standard for a contractor's employees which
must be agreed to by any contractor before the contractor may be awarded any contract for the
furnishing of any labor, material, supplies, or service.
    Subd. 8. Procurement from economically disadvantaged persons. For purposes of this
subdivision, the following terms shall have the meanings herein ascribed to them:
(a) "Small targeted group business" means businesses designated under section 16C.16.
(b) "Business entity" means an entity organized for profit, including an individual,
partnership, corporation, joint venture, association, or cooperative.
Nothing in this section shall be construed to prohibit any municipality from adopting a
resolution, rule, regulation, or ordinance which on an annual basis designates and sets aside for
awarding to small targeted group businesses a percentage of the value of its anticipated total
procurement of goods and services, including construction, and which uses either a negotiated
price or bid contract procedure in the awarding of a procurement contract under a set-aside
program as allowed in this subdivision, provided that any award based on a negotiated price shall
not exceed by more than five percent the municipality's estimated price for the goods and services
if they were purchased on the open market and not under the set-aside program.
    Subd. 9.[Repealed, 1990 c 549 s 3]
    Subd. 10. Shared hospital or ambulance service purchasing. Supplies, materials, or
equipment to be used in the operation of a hospital licensed under sections 144.50 to 144.56 or an
ambulance service licensed under chapter 144E that are purchased or leased under a shared service
purchasing arrangement whereby more than one hospital or ambulance service purchases supplies,
materials, or equipment with one or more other hospitals or ambulance services either through
one of the hospitals or ambulance services or through another entity, may be purchased without
regard to the competitive bidding requirements of this section, if the following conditions are met:
(1) the hospital's or ambulance service's governing authority authorizes the arrangement;
(2) the shared services purchasing program purchases items available from more than one
source on the basis of competitive bids or competitive quotations of prices; and
(3) the arrangement authorizes the hospital's or ambulance service's governing authority or
its representatives to review the purchasing procedures to determine compliance with these
requirements.
The shared services purchasing program may award contracts to more than one bidder if
doing so does not decrease the service level or diminish the effects of competition.
    Subd. 11. Fuel contracts for generation of municipal power. Notwithstanding the amount
of the contract, any contract entered into by a municipality for the purchase of fuel required for
the generation of power from municipal power plants shall be governed by subdivision 4.
    Subd. 12. Procurement from rehabilitation facilities. Nothing in this section prohibits a
municipality from adopting a resolution, rule, regulation, or ordinance that on an annual basis
designates and sets aside for awarding to rehabilitation facilities as described in section 268A.06
a percentage of the value of its anticipated total procurement of goods and services, including
construction, and which uses either a negotiated price or bid contract procedure in the awarding of
a procurement contract under a set-aside program as allowed in this subdivision, provided that any
award based on a negotiated price shall not exceed by more than five percent the municipality's
estimated price for the goods and services if they were purchased on the open market and not
under the set-aside program.
    Subd. 13. Energy efficiency projects. The following definitions apply to this subdivision.
    (a) "Energy conservation measure" means a training program or facility alteration designed
to reduce energy consumption or operating costs and includes:
    (1) insulation of the building structure and systems within the building;
    (2) storm windows and doors, caulking or weatherstripping, multiglazed windows and
doors, heat absorbing or heat reflective glazed and coated window and door systems, additional
glazing, reductions in glass area, and other window and door system modifications that reduce
energy consumption;
    (3) automatic energy control systems;
    (4) heating, ventilating, or air conditioning system modifications or replacements;
    (5) replacement or modifications of lighting fixtures to increase the energy efficiency of the
lighting system without increasing the overall illumination of a facility, unless an increase in
illumination is necessary to conform to the applicable state or local building code for the lighting
system after the proposed modifications are made;
    (6) energy recovery systems;
    (7) cogeneration systems that produce steam or forms of energy such as heat, as well as
electricity, for use primarily within a building or complex of buildings;
    (8) energy conservation measures that provide long-term operating cost reductions.
    (b) "Guaranteed energy savings contract" means a contract for the evaluation and
recommendations of energy conservation measures, and for one or more energy conservation
measures. The contract must provide that all payments, except obligations on termination of the
contract before its expiration, are to be made over time, but not to exceed 15 years from the date
of final installation, and the savings are guaranteed to the extent necessary to make payments
for the systems.
    (c) "Qualified provider" means a person or business experienced in the design,
implementation, and installation of energy conservation measures. A qualified provider to whom
the contract is awarded shall give a sufficient bond to the municipality for its faithful performance.
    Notwithstanding any law to the contrary, a municipality may enter into a guaranteed energy
savings contract with a qualified provider to significantly reduce energy or operating costs.
    Before entering into a contract under this subdivision, the municipality shall provide
published notice of the meeting in which it proposes to award the contract, the names of the
parties to the proposed contract, and the contract's purpose.
    Before installation of equipment, modification, or remodeling, the qualified provider
shall first issue a report, summarizing estimates of all costs of installations, modifications, or
remodeling, including costs of design, engineering, installation, maintenance, repairs, or debt
service, and estimates of the amounts by which energy or operating costs will be reduced.
    A guaranteed energy savings contract that includes a written guarantee that savings will
meet or exceed the cost of energy conservation measures is not subject to competitive bidding
requirements of section 471.345 or other law or city charter. The contract is not subject to section
123B.52.
    A municipality may enter into a guaranteed energy savings contract with a qualified provider
if, after review of the report, it finds that the amount it would spend on the energy conservation
measures recommended in the report is not likely to exceed the amount to be saved in energy
and operation costs over 15 years from the date of installation if the recommendations in the
report were followed, and the qualified provider provides a written guarantee that the energy or
operating cost savings will meet or exceed the costs of the system. The guaranteed energy savings
contract may provide for payments over a period of time, not to exceed 15 years.
    A municipality may enter into an installment payment contract for the purchase and
installation of energy conservation measures. The contract must provide for payments of not
less than 1/15 of the price to be paid within two years from the date of the first operation, and
the remaining costs to be paid monthly, not to exceed a 15-year term from the date of the first
operation.
    A municipality entering into a guaranteed energy savings contract shall provide a copy of
the contract and the report from the qualified provider to the commissioner of commerce within
30 days of the effective date of the contract.
    Guaranteed energy savings contracts may extend beyond the fiscal year in which they
become effective. The municipality shall include in its annual appropriations measure for each
later fiscal year any amounts payable under guaranteed energy savings contracts during the
year. Failure of a municipality to make such an appropriation does not affect the validity of the
guaranteed energy savings contract or the municipality's obligations under the contracts.
    Subd. 14. Damage awards. In any action brought challenging the validity of a municipal
contract under this section, the court shall not award, as any part of its judgment, damages, or
attorney's fees, but may award an unsuccessful bidder the costs of preparing an unsuccessful bid.
    Subd. 15. Cooperative purchasing. A municipality may contract for the purchase of
supplies, materials, or equipment without regard to the competitive bidding requirements of
this section if the purchase is through a national municipal association's purchasing alliance or
cooperative created by a joint powers agreement that purchases items from more than one source
on the basis of competitive bids or competitive quotations.
    Subd. 16. Reverse auction. Notwithstanding any other procedural requirements of this
section, a municipality may contract to purchase supplies, materials, and equipment using an
electronic purchasing process in which vendors compete to provide the supplies, materials, or
equipment at the lowest selling price in an open and interactive environment. A municipality may
not use this process to contract for services, as defined by section 16C.02, subdivision 17, or a
service contract, as defined by section 16C.02, subdivision 16. Nothing in this subdivision must
be construed to prohibit a municipality from adopting a resolution, rule, regulation, or ordinance
relating to minimum labor standards under subdivision 7, or procurement from economically
disadvantaged persons under subdivision 8.
    Subd. 17. Electronic sale of surplus supplies, materials, and equipment. Notwithstanding
any other procedural requirements of this section, a municipality may contract to sell supplies,
materials, and equipment which is surplus, obsolete, or unused using an electronic selling process
in which purchasers compete to purchase the surplus supplies, materials, or equipment at the
highest purchase price in an open and interactive environment.
    Subd. 18. Electronic bidding. Notwithstanding any other procedural requirements of this
section, vendors may submit bids, quotations, and proposals electronically in a form and manner
required by the municipality. A municipality may allow bid, performance, or payment bonds, or
other security, to be furnished electronically.
    Subd. 19. Town road construction and maintenance. Notwithstanding any other
procedural requirements of this section, a town may contract for the construction or maintenance
of a town road by agreeing to the terms of an existing contract between a vendor and a county for
road construction or maintenance on an adjoining road if the existing county contract was made
in conformance with all applicable procedural requirements.
History: 1969 c 934 s 1; 1973 c 123 art 5 s 7; 1973 c 226 s 1,2; 1974 c 510 s 1; 1977 c
182 s 1-3; 1980 c 462 s 4; 1983 c 42 s 1-3; 1983 c 301 s 211; 1984 c 413 s 1; 1985 c 172 s 129;
1Sp1985 c 13 s 347; 1986 c 350 s 1,2; 1986 c 444; 1988 c 409 s 1; 1988 c 689 art 2 s 268; 1989 c
9 s 3; 1989 c 352 s 19,25; 1990 c 391 art 8 s 51; 1990 c 541 s 26,29; 1990 c 549 s 1; 1992 c
380 s 4-6; 1998 c 386 art 2 s 93; 1998 c 397 art 11 s 3; 1999 c 13 s 1; 2000 c 328 s 2-4; 2002
c 358 s 1; 1Sp2003 c 10 s 1; 2004 c 278 s 10-14; 2005 c 63 s 1; 2006 c 274 s 2; 2007 c 136
art 3 s 4; 2007 c 148 art 3 s 31-33

471.346 PUBLICLY OWNED AND LEASED VEHICLES IDENTIFIED.
All motor vehicles owned or leased by a statutory or home rule charter city, county,
town, school district, metropolitan or regional agency, or other political subdivision, except for
unmarked vehicles used in general police and fire work and arson investigations, shall have the
name of the political subdivision plainly displayed on both sides of the vehicle in letters not less
than 2-1/2 inches high and one-half inch wide. The identification must be in a color that contrasts
with the color of the part of the vehicle on which it is placed and must remain on and be clean and
visible throughout the period of which the vehicle is owned or leased by the political subdivision.
The identification must not be on a removable plate or placard except on leased vehicles but the
plate or placard must not be removed from a leased vehicle at any time during the term of the lease.
History: 1994 c 635 art 1 s 29

471.35 SPECIFICATIONS OF SUPPLIES OR EQUIPMENT.
When any county, city, town, or school district calls for bids for the purchase of supplies or
equipment, specifications shall not be so prepared as to exclude all but one type or kind but shall
include competitive supplies and equipment.
History: (1933-77) 1937 c 416 s 2; 1959 c 261 s 1; 1973 c 123 art 5 s 7; 1975 c 157 s 1

471.36 NONCOMPETITIVE SUPPLIES AND EQUIPMENT.
The provisions of sections 471.35 to 471.37 shall not apply to noncompetitive types and
kinds of supplies and equipment.
History: (1933-78) 1937 c 416 s 3; 1959 c 261 s 2

471.37 VIOLATIONS.
The violation of any of the provisions of sections 471.35 to 471.36 shall be a gross
misdemeanor.
History: (1933-79) 1937 c 416 s 4; 1959 c 261 s 3

471.371 CONTRACTS FOR CONSTRUCTION OF TREATMENT WORKS.
    Subdivision 1.[Repealed, 1991 c 212 s 4]
    Subd. 2. Authorization of design and construct contracts. Notwithstanding the provisions
of any law or charter to the contrary, any municipality authorized by law to enter into a contract
for the design and/or construction of water or wastewater treatment facilities may advertise
for sealed bids for the design and construction thereof under a single contract. Prior to such
advertisement the municipality shall prepare or cause to be prepared documents which shall serve
as a basis for the comparison of bids and any contract to be entered into. These documents shall
be prepared by a professional engineer in sufficient detail, including hydraulic flow and organic
loading calculations, design capacity, effluent limits, design life, and the treatment alternatives
for the wastewater treatment facility, for the bidder to describe the probable cost, scope of
work, equipment and materials of construction; and the documents shall include performance
standards for the construction and performance standards for the operation of the facility which
must be met for specified conditions and time periods, prior to final acceptance of the facility
by the municipality. The documents shall require the bidder to furnish estimates of the annual
operation and maintenance costs of the facility, conceptual plans and specifications and any other
information deemed relevant for contract award.
In awarding the contract, the municipality shall take into consideration the performance
guarantee, completion date, construction cost, capacity of the facility, design life estimated annual
operation and maintenance cost, and other relevant factors.
The provisions of any law which require the Minnesota Pollution Control Agency to approve
all plans and specifications on a municipal or regional water or wastewater treatment facility
prior to calling for construction bids shall not be applicable to contracts authorized by this
section. However, after bids have been received and evaluated by the governing body, the best
bid determined, and the contract awarded, a municipality shall not, by the terms of the awarded
contract, allow construction to commence until all legal requirements are met and the plans and
specifications for construction of a wastewater treatment facility have been approved by the
Minnesota Pollution Control Agency or, in the case of a water treatment facility, the plans and
specifications for construction have been approved by the Minnesota Department of Health.
Upon award of the contract the municipality shall require the successful bidder to furnish
detailed plans and specifications and shall provide for termination of the contract and may provide
for penalties if such plans and specifications are insufficient to permit the municipality to satisfy
the requirements of any federal or state permit.
    Subd. 3. Limitations. The provisions of subdivision 2 shall not in any way limit the
application and effect of laws governing the practice of architecture, professional engineering, or
land surveying in this state, including sections 326.02 to 326.15, and 541.051.
    Subd. 4. Definitions. As used in this section, "municipality" has the meaning given to it in
section 471.345; "contract" includes not only construction work but also all necessary design
services, including process and mechanical equipment, provisions for the start-up of the new
facility, performance guarantee, and the other necessary and related items to make an operable
plant; and "facility" or "facilities" shall, in addition to the treatment facility, include collection and
distribution systems.
    Subd. 5. Contract security and insurance. Each awarded contract:
(1) shall require a payment and performance bond for the construction portion of the contract;
(2) shall require the successful bidder to guarantee the performance of the facility to the level
required by a permit for the operation of the facility, for 12 months after the date operation
begins; and
(3) may allow construction progress payments by the municipality to the successful bidder.
    Subd. 6.[Repealed, 1991 c 212 s 4]
History: 1974 c 503 s 1,2; 1Sp1981 c 4 art 1 s 35; 1991 c 212 s 1-3

471.38 CLAIMS.
    Subdivision 1. Itemization; declaration. Except as provided in subdivision 2, where an
account, claim or demand against any county, local social services agency, county board of
education for unorganized territory, school district, town or home rule charter city of the second,
third or fourth class, or any park district, for any property or services can be itemized in the
ordinary course of business, the board or officer authorized by law to audit and allow claims shall
not audit or allow the claim until the person claiming payment, or the person's agent, reduces it
to writing or an electronic transaction record, in items and signs a declaration to the effect that
such account, claim, or demand is just and correct and that no part of it has been paid. The board
or officer may in its discretion allow a claim prepared by the clerk or secretary of such board
or officer prior to such declaration by the claimant if the declaration is made on the check or
order-check by which the claim is paid, as provided in section 471.391, subdivision 2.
    Subd. 2. Application. The provisions of this section do not apply to any claim or demand for
an annual salary or fees of jurors or witnesses, fixed by law, nor to the salary or wages of any
employee whose salary or wages have been fixed on an hourly, daily, weekly or monthly basis,
by the governing board of the municipality, and which is now authorized by law to be paid on
a payroll basis.
    Subd. 3. Electronic funds transfer. Electronic funds transfer is the process of value
exchange via mechanical means without the use of checks, drafts, or similar negotiable
instruments. A school district may make an electronic funds transfer for the following:
(1) for a claim for a payment from an imprest payroll bank account or investment of excess
money;
(2) for a payment of tax or aid anticipation certificates;
(3) for a payment of contributions to pension or retirement fund;
(4) for vendor payments; and
(5) for payment of bond principal, bond interest and a fiscal agent service charge from
the debt redemption fund.
    Subd. 3a. School district eligibility. The authorization in subdivision 3 extends only to a
school district that has enacted all of the following policy controls:
(a) the school board shall annually delegate the authority to make electronic funds transfers
to a designated business administrator;
(b) the disbursing bank shall keep on file a certified copy of the delegation of authority;
(c) the initiator of the electronic transfer shall be identified;
(d) the initiator shall document the request and obtain an approval from the designated
business administrator before initiating the transfer;
(e) a written confirmation of the transaction shall be made no later than one business day
after the transaction and shall be used in lieu of a check, order check or warrant required to
support the transaction;
(f) a list of all transactions made by electronic funds transfer shall be submitted to the school
board at its next regular meeting after the transaction.
History: (766) RL s 438; 1949 c 416 s 1; 1951 c 350 s 1; 1953 c 50 s 1; 1955 c 312 s 1;
1959 c 56 s 1; 1961 c 5 s 1; 1976 c 44 s 68; 1979 c 334 art 6 s 25; 1986 c 444; 1989 c 329 art 9 s
29; 1994 c 631 s 31; 2001 c 13 s 1

471.381 CITY, TOWN, AND COUNTY OBLIGATIONS AND PAYMENTS.
    Subdivision 1. Payment methods. Payments of claims and obligations of a statutory or
home rule charter city, town, or county may be made by warrant, check, or all forms of electronic
or wire funds transfer. If the city, town, or county may make investments, it may make electronic
or wire transfers of funds notwithstanding any other law to the contrary.
    Subd. 2. Authority to accept payment by credit card or other methods. A statutory or
home rule charter city, town, or a county may accept payment by use of a credit card, debit
card, or all forms of electronic or wire funds transfer. Subject to any other law to the contrary,
the city, town, or county may add to the amount due a service charge for the acceptance of a
payment method authorized in this subdivision. The city, town, or county shall adopt policies and
procedures regarding the payments. The payment of property taxes by credit card is subject to
section 276.02.
    Subd. 3. Electronic approval. "Electronic approval" means any electronic identifier intended
by the person making, executing, or adopting it to authenticate and validate a city, town, or county
administrative action. Notwithstanding any other general or special law to the contrary, a statutory
or home rule charter city, a town, or a county may use electronic approvals, which have the same
validity and consequences as an actual signature. The city, town, or county must establish policies
and procedures to ensure the validity of electronic approvals.
History: 2001 c 13 s 2; 2004 c 152 s 1

471.382 CREDIT CARDS.
A city council or town board may authorize the use of a credit card by any city or town
officer or employee otherwise authorized to make a purchase on behalf of the city or town. If a
city or town officer or employee makes or directs a purchase by credit card that is not approved by
the city council or town board, the officer or employee is personally liable for the amount of the
purchase. A purchase by credit card must otherwise comply with all statutes, rules, or city or town
policy applicable to city or town purchases.
History: 2001 c 13 s 3

471.39 [Repealed, 1949 c 416 s 3]

471.391 DECLARATION FORM.
    Subdivision 1. Sufficiency. The declaration provided for in section 471.38 is sufficient if in
the following form: "I declare under the penalties of law that this account, claim or demand is just
and correct and that no part of it has been paid.
.....................
Signature of Claimant"
    Subd. 2. Above check endorsement. The check or order-check by which the claim is paid
may have printed on its reverse side, above the space for endorsement thereof by the payee, the
following statement: "The undersigned payee, in endorsing this check (or order-check) declares
that the same is received in payment of a just and correct claim against the county (county board
of education for unorganized territory, school district, town or city), and that no part of it has
heretofore been paid." When endorsed by the payee named in the check or order-check, such
statement shall operate and shall be deemed sufficient as the required declaration of the claim.
History: 1949 c 416 s 2; 1951 c 350 s 2; 1959 c 56 s 2

471.392 PENALTY.
Any person who willfully and falsely makes the declaration provided for in sections 471.38
and 471.391 is guilty of a felony.
History: 1951 c 350 s 3

471.40 AUDITING CLAIMS.
When any account, claim, or demand against any municipality shall have been verified in
the manner prescribed in this chapter, the board or officer to whom it shall be presented may
receive and consider it, and allow or disallow the same, in whole or in part, as shall appear just or
lawful, saving to the claimant the right of appeal.
History: (768) RL s 440

471.41 AUDITING ACCOUNTS NOT ITEMIZED A GROSS MISDEMEANOR.
Every member of such board who shall audit and allow any claim required to be itemized,
without the same having been first duly itemized and verified, shall be guilty of a gross
misdemeanor.
History: (769) RL s 441

471.415 DUPLICATE WARRANTS OR ORDERS.
    Subdivision 1. Issuance. When any order or warrant of any county, city, town, or school
district in the state shall become lost or destroyed, a duplicate thereof may be issued by the
officers authorized by law to issue such orders or warrants under the regulations and restrictions
hereinafter prescribed. Such duplicate shall correspond in number, date, and amount with the
original order or warrant and shall have endorsed on its face by the officers issuing the same the
word "duplicate," together with the date of its issuance.
    Subd. 2. Affidavit filed before warrant issues. A duplicate for a lost or destroyed order or
warrant shall not issue until there shall have been filed with the proper officer an affidavit of the
owner thereof setting forth the ownership of the order or warrant, the description thereof, and the
manner of its loss or destruction, and until there shall have been executed and filed with the same
officer an indemnifying bond, with sureties to be approved by such officer, in a sum equal to the
amount of such order or warrant, conditioned that the parties thereto shall pay all damages which
the county, city, town, or school district may sustain if compelled to pay such lost or destroyed
order or warrant. The governing body of any county, city, town, or school district may in its
discretion dispense with the requirement of an indemnifying bond.
    Subd. 3. Record to be kept. Any officer issuing duplicates under this section shall keep a
record showing the number, dates, and amounts of such mutilated, lost, or destroyed orders or
warrants, together with the date of issuance of the duplicates therefor, and the names of the
persons to whom issued.
History: (1058, 1059, 1060, 1061) 1915 c 36 s 1-4; 1961 c 60 s 1; 1961 c 325 s 1; 1973 c
123 art 5 s 7; 2002 c 379 art 1 s 96

471.42 [Repealed, 1963 c 798 s 16]

471.425 PROMPT PAYMENT OF LOCAL GOVERNMENT BILLS.
    Subdivision 1. Definitions. For the purposes of this section, the following terms have the
meanings here given them.
(a) "Contract" means any written legal document or documents signed by both parties in
which the terms and conditions of any interest or other penalty for late payments are clearly stated.
(b) "Date of receipt" means the completed delivery of the goods or services or the satisfactory
installation, assembly or specified portion thereof, or the receipt of the invoice for the delivery
of the goods or services, whichever is later.
(c) "Governing board" means the elected or appointed board of the municipality and
includes, but is not limited to, city councils, town boards and county boards.
(d) "Municipality" means any home rule charter or statutory city, county, town, school
district, political subdivision or agency of local government. "Municipality" means the
Metropolitan Council or any board or agency created under chapter 473.
    Subd. 2. Payment required. A municipality must pay each vendor obligation according
to the terms of the contract or, if no contract terms apply, within the standard payment period
unless the municipality in good faith disputes the obligation. Standard payment period is defined
as follows:
(a) For municipalities who have governing boards which have regularly scheduled meetings
at least once a month, the standard payment period is defined as within 35 days of the date of
receipt.
(b) For municipalities whose governing boards do not regularly meet at least once a month,
the standard payment period is defined as 45 days after receipt of the goods or services or the
invoice for the goods or services, whichever is later.
(c) For joint powers organizations organized under section 471.59, the standard payment
period is within 45 days of the date of receipt.
    Subd. 3. Invoice errors. If an invoice is incorrect, defective or otherwise improper, the
municipality must notify the vendor within ten days of the date of receipt. Upon receiving a
corrected invoice from the vendor, the municipality must pay the obligation within the standard
payment period defined in subdivision 2.
    Subd. 4. Payment of interest on late payments required. (a) Except otherwise provided in
this section, a municipality shall calculate and pay interest to a vendor if the municipality has not
paid the obligation according to the terms of the contract or, if no contract terms apply, within
the standard payment period as defined in subdivision 2. The standard payment period for a
negotiated contract or agreement between a vendor and a municipality which requires an audit by
the municipality before acceptance and payment of the vendor's invoice shall not be begun until
the completion of the audit by the municipality.
(b) The rate of interest calculated and paid by the municipality on the outstanding balance
of the obligation not paid according to the terms of the contract or during the standard payment
period shall be 1-1/2 percent per month or part of a month.
(c) No interest penalties may accrue against a purchaser who delays payment of a vendor
obligation due to a good faith dispute with the vendor regarding the fitness of the product or
service, contract compliance, or any defect, error or omission related thereto. If such delay
undertaken by the municipality is not in good faith, the vendor may recover costs and attorney's
fees.
(d) The minimum monthly interest penalty payment that a municipality shall calculate and
pay a vendor for the unpaid balance for any one overdue bill of $100 or more is $10. For unpaid
balances of less than $100, the municipality shall calculate and pay the actual interest penalty
due the vendor.
    Subd. 4a. Prompt payment to subcontractors. Each contract of a municipality must require
the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt
of payment from the municipality for undisputed services provided by the subcontractor. The
contract must require the prime contractor to pay interest of 1-1/2 percent per month or any part
of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor.
The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10.
For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due
to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties
from a prime contractor must be awarded its costs and disbursements, including attorney's fees,
incurred in bringing the action.
    Subd. 5. Applicability. This section applies to all goods, leases and rents, and contracts for
services, construction, repair and remodeling. Purchases from or contracts for service with a
public utility as defined in section 216B.02 or a telephone company as defined in section 237.01
that has on file with the public utilities commission an approved practice regarding late fees are
not subject to this section.
History: 1985 c 136 s 5; 1995 c 31 s 1

471.426 DIRECT DEPOSIT.
Notwithstanding sections 177.23, subdivision 4, and 181.02, the governing body of a
municipality as defined in section 471.425, may require direct deposit for all its employees who
are being paid by its payroll system.
History: 2004 c 292 s 1

471.43 [Repealed, 1963 c 798 s 16]

471.44 MUNICIPALITY TO SUPPLY COUNSEL FOR POLICE, PEACE OFFICERS.
    Subdivision 1. Costs in defense of legal action. On and after the passage of Laws 1937,
chapter 442, every city, town, or county of this state employing sheriffs, police officers, or peace
officers shall be required to furnish legal counsel to defend any sheriff, deputy sheriff, police
officer, or peace officer employed by any such governmental subdivision in all actions brought
against such officer to recover damages for alleged false arrest or alleged injury to person,
property or character, when such alleged false arrest or alleged injury to person, property or
character was the result of an arrest made by such officer in good faith and in the performance of
official duties and pay the reasonable costs and expenses of defending such suit, including witness
fees and reasonable counsel fees, notwithstanding any contrary provisions in the laws of this state
or in the charter of any such governmental subdivision.
    Subd. 2. Costs in defense of civilian complaints. A home rule charter or statutory city,
town, or county that establishes a peace officer civilian review authority to review civilian
complaints about alleged peace officer misconduct shall pay the reasonable costs of legal counsel
and reasonable fees incurred by the officer in defending against a complaint after a finding that
the complaint is sustained by the authority, and if the complaint is subsequently not upheld. If a
complaint against a peace officer is sustained, no payment may be made under this subdivision.
History: (1933-81) 1937 c 442 s 1; 1947 c 390 s 1; 1973 c 123 art 5 s 7; 1986 c 444; 1993
c 220 s 1; 2004 c 200 s 1

471.45 COSTS AND DISBURSEMENTS TO BE ASSIGNED TO MUNICIPALITIES.
If, at the termination of such suit, judgment is rendered in favor of the defendant and against
the plaintiff, such judgment for costs and disbursements shall be assigned to such governmental
subdivision by such officer, and all moneys collected thereon shall be paid to such governmental
subdivision. If judgment be rendered in such action against such officer, such governmental
subdivision so employing such officer is hereby authorized to appropriate moneys from any funds
available to pay such judgment, if, in the discretion of the governing body of such governmental
subdivision, it seems fitting and proper to do so.
History: (1933-82) 1937 c 442 s 2

471.46 VACANCIES; PERSONS INELIGIBLE TO APPOINTMENT.
No county, city, town or school district officer shall be appointed to fill a vacancy in any
elective office if the officer has the power, either alone or as a member of a board, to make the
appointment; and the ineligibility shall not be affected by resignation before such appointment is
made. This section shall not prevent the appointment of a member of a city council to the office of
mayor or clerk, but in that case the member shall not vote in the appointment.
History: (254-49) 1939 c 249; 1943 c 346 s 1; 1959 c 422 s 1; 1973 c 123 art 5 s 7; 1986
c 444

ACCESS FOR PHYSICALLY DISABLED

471.464 RAMPS AT CROSSWALKS.
    Subdivision 1. At new installations. Every city shall install ramps at crosswalks, in both
business and residential areas, when making new installations of sidewalks and curbs or gutters,
or improving or replacing existing sidewalks and curbs or gutters, so as to make the transition
from street to sidewalk easily negotiable for disabled persons in wheelchairs and for other persons
who may have difficulty in making the required step up or down from curb level to street level.
    Subd. 2. Design specifications. All such ramps shall be constructed or installed in accordance
with design specifications therefor prepared by the Department of Transportation. The Department
of Transportation shall make available to such municipalities design standards for such ramps.
History: 1973 c 50 s 1; 1973 c 123 art 5 s 7; 1976 c 166 s 7; 2005 c 56 s 1

471.465 PERSONS WITH DISABILITIES; BUILDING REGULATIONS; DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 471.465 to 471.469, the terms defined in
this section have the meanings given them.
    Subd. 2. Buildings and facilities. "Buildings and facilities" means any and all buildings and
facilities and the grounds appurtenant thereto within any city, township or other governmental
subdivision of the state other than all farm dwellings and buildings and single and two family
dwellings. However, on the date on which rules promulgated by the commissioner of labor and
industry regarding building requirements for persons with disabilities shall become effective,
"buildings and facilities" shall mean only those structures which must provide facilities for
persons with disabilities pursuant to said rules.
    Subd. 3. Persons with disabilities. "Persons with disabilities" means and includes people
having sight disabilities, hearing disabilities, disabilities of incoordination, disabilities of
aging, and any other disability that significantly reduces mobility, flexibility, coordination, or
perceptiveness.
    Subd. 4. Remodeling. "Remodeling" means deliberate reconstruction of an existing building
or facility in whole or in part in order to bring it up to date to conform with present uses of
the structure and to conform with rules and regulations on the upgrading of health and safety
aspects of structures.
    Subd. 5. Local authority. "Local authority" means the local authority having jurisdiction
over local building construction.
History: 1971 c 466 s 1; Ex1971 c 48 s 36; 1974 c 360 s 1; 2005 c 56 s 1; 2007 c 140
art 12 s 16

471.466 ADMINISTRATION AND ENFORCEMENT.
    The duty and power to administer and enforce sections 471.465 to 471.469 is conferred upon
and vested in the commissioner of labor and industry and the local authority.
History: 1971 c 466 s 2; 1974 c 360 s 2; 2007 c 140 art 12 s 17

471.467 BUILDING REQUIREMENTS; CONFORMITY.
    Subdivision 1. Date applicable. On the date on which rules promulgated by the
commissioner of labor and industry regarding building requirements for persons with disabilities
shall become effective, said rules shall exclusively govern the provision of facilities.
    Subd. 2. No remodeling if solely for persons with disabilities. Nothing in sections 471.465
to 471.469 shall be construed to require the remodeling of buildings solely to provide accessibility
and usability to persons with disabilities when remodeling would not otherwise be undertaken.
    Subd. 3. Applies to remodeled part. When any building or facility covered by sections
471.465 to 471.469 undergoes remodeling either in whole or in part, that portion of the building
or facility remodeled shall conform to the requirements of sections 471.465 to 471.469.
History: 1971 c 466 s 3; 1974 c 360 s 3; 1985 c 248 s 70; 1987 c 384 art 2 s 99; 2005 c 56 s
1; 2007 c 140 art 12 s 18

471.468 BUILDING PLANS; APPROVAL; EXCEPTIONS.
On-site construction or remodeling shall not hereafter be commenced of any building or
facility until the plans and specifications of the building or facility have been reviewed and
approved by the local authority. The provisions of sections 471.465 to 471.469 are applicable
only to contracts awarded subsequent to May 22, 1971. The local authority shall certify in writing
that the review and approval under this section have occurred. The certification must be attached
to the permit of record.
History: 1971 c 466 s 4; 1974 c 360 s 4; 1991 c 345 art 1 s 94

471.469 ELEVATORS IN APARTMENT BUILDINGS.
Nothing herein shall be construed to require elevators in apartment buildings.
History: 1971 c 466 s 5

471.47 [Repealed, 1974 c 406 s 48]

471.471 ACCESS REVIEW BOARD.
    Subdivision 1. Membership. The Access Review Board consists of:
    (1) a representative of the Department of Labor and Industry, appointed by the commissioner
of labor and industry;
    (2) a representative of the state fire marshal's office, appointed by the commissioner of
public safety;
    (3) the commissioner of human rights or the commissioner's designee;
    (4) a representative of the elevator safety section, designated by the commissioner of labor
and industry; and
    (5) the chair of the Council on Disability or the chair's designee.
The board shall elect a chair from among its members. Terms of members coincide with the terms
of their appointing authorities or, in the case of ex officio members or their designees, with the
terms of the offices by virtue of which they are members of the board. Compensation of members
is governed by section 15.0575, subdivision 3.
    Subd. 2. Staff; administrative support. The commissioner of labor and industry shall
furnish staff, office space, and administrative support to the board. Staff assigned to the board
must be knowledgeable with respect to access codes, site surveys, plan design, and product use
and eligibility.
    Subd. 3. Duties. The board shall consider applications for waivers from the State Building
Code to permit the installation of stairway chair lifts to provide limited accessibility for persons
with disabilities to buildings in which the provision of access by means permitted under the State
Building Code is not architecturally or financially possible. In considering applications, the board
shall review other possible access options. The board may approve an application for installation
of a stairway chair when the board determines that the installation would be appropriate and no
other means of access is possible. In determining whether to approve an application, the board
shall consider:
    (1) the need for limited accessibility when a higher degree of accessibility is not required by
state or federal law or rule;
    (2) the architectural feasibility of providing a greater degree of accessibility than would be
provided by the proposed device or equipment;
    (3) the total cost of the proposed device or equipment over its projected usable life, including
installation, maintenance, and replacement costs;
    (4) the reliability of the proposed device or equipment;
    (5) the applicant's ability to comply with all recognized access and safety standards for
installation and maintenance; and
    (6) whether the proposed device or equipment can be operated and used without reducing
or compromising minimum safety standards.
The board shall consider the applicant's demonstrated inability to afford a greater degree of
accessibility, but may not give greater weight to this factor than to the factors listed in clauses
(1) to (6). The board may not approve an application unless the applicant guarantees that the
device or equipment will be installed and operated in accordance with nationally recognized
standards for such devices or equipment and agrees to obtain any permits needed from the agency
responsible for enforcing those standards.
    Subd. 4. Application process. A person seeking a waiver shall apply to the Department of
Labor and Industry on a form prescribed by the board and pay a $70 fee to the construction code
fund. The division shall review the application to determine whether it appears to be meritorious,
using the standards set out in subdivision 3. The division shall forward applications it considers
meritorious to the board, along with a list and summary of applications considered not to be
meritorious. The board may require the division to forward to it an application the division has
considered not to be meritorious. The board shall issue a decision on an application within 90
days of its receipt. A board decision to approve an application must be unanimous. An application
that contains false or misleading information must be rejected.
    Subd. 5. Liability. Board members are immune from liability for personal injury or death
resulting from the use or misuse of a device or equipment installed and operated under a waiver
granted by the board.
History: 1990 c 531 s 1; 2007 c 135 art 3 s 38; 2007 c 140 art 12 s 19

HOSPITAL, AMBULANCE SERVICES

471.475 IRON RANGE CITIES OR TOWNS MAY LEASE OUT HOSPITAL.
The governing body of any city or town, the valuation of which consists of more than 25
percent iron ore may lease, upon such terms as it deems to be in its best interests, whether for a
direct monetary consideration or otherwise, any community or municipal hospital, or any lands,
or buildings in connection therewith belonging to said city or town to any incorporated nonprofit
hospital association. However, such hospital must be made and kept available to all inhabitants
of such city or town on equal terms. Any such city or town may lease, sell, assign or donate to
such hospital association upon such terms as it determines to be in its best interests, whether for
monetary consideration or otherwise, any hospital supplies or equipment for use in such hospital,
and may reimburse such association for any expenditures made for such hospital supplies out of
the general or permanent improvement fund of the city or town or out of any special hospital fund
which may be created, or out of moneys obtained as gifts for hospital purposes from individuals,
corporations, foundations, or groups of any sort.
History: 1957 c 116 s 1; 1973 c 123 art 5 s 7

471.476 AMBULANCE SERVICES, EXCEPT BY HENNEPIN COUNTY.
    Subdivision 1. In or out of boundaries, also to nonresidents. Any county, except Hennepin
County, city, however organized, town or hospital district, either singly or jointly in accordance
with an agreement made pursuant to section 471.59, may provide general ambulance services.
In providing such service the political subdivision may purchase, rent or lease ambulances and
related equipment and supplies; may contract for such service with any person, firm, corporation
or other political subdivision upon such terms and conditions as may be agreed upon and may
employ and train personnel for such service. Ambulance service authorized by this section may be
provided both inside and outside the boundaries of the political subdivision and may be furnished
to nonresidents as well as residents.
    Subd. 2. Tax levy. Any such political subdivision providing a general ambulance service
pursuant to this section may levy an annual tax over and above any statutory or charter limitation
and may also impose reasonable charges for ambulance services in order to finance the cost of
such service. Any governing body may appropriate money as necessary from funds received for
the purposes of Laws 1969, chapter 333, or from any surplus in general revenue funds of the
political subdivision.
    Subd. 3. City bonds for equipment. Any city, however organized, may issue bonds for the
acquisition of ambulances and related equipment notwithstanding the provisions of any other
statute or charter.
    Subd. 4. Town tax; conditions. Any organized town may in the manner hereinafter provided
provide general ambulance service for a portion or portions of the territory within the town outside
the boundaries of any incorporated municipality, and may levy the tax authorized by this section
on the portion or portions so served. To establish such service, the town board shall adopt a
resolution describing with particularity the territory to be served and shall transmit a certified copy
of the resolution to the county auditor. The territory described in the resolution shall be compact
and contiguous in nature. The town board may thereafter annually levy such tax on the territory
described as may be necessary to provide the ambulance service. Upon the certification of such
tax by the town board to the county auditor, the auditor shall thereupon spread the tax upon the
property described in the resolution and the same shall be collected and distributed as other taxes
for use by the town board for ambulance service within the territory described in the resolution.
History: 1969 c 333 s 1,2; 1971 c 20 s 1; 1973 c 123 art 5 s 7; 1978 c 743 s 16

471.48 [Repealed, 1976 c 44 s 70]

RESETTLEMENT PROJECT AGREEMENTS

471.49 DEFINITIONS.
    Subdivision 1. Words, terms, and phrases. Unless the language or context clearly indicates
that a different meaning is intended, the following words, terms, and phrases, for the purposes of
this chapter, shall be given the meanings hereinafter subjoined to them.
    Subd. 2. Agreement. "Agreement" means "contract" and includes renewals and alterations
of a contract.
    Subd. 3. Political subdivision. "Political subdivision" means any agency or unit of this state
which now is, or hereafter shall be, authorized to levy taxes or empowered to cause taxes to
be levied.
    Subd. 4. Services. "Services" means such public and municipal functions as are performed
for property in and persons residing within a political subdivision.
    Subd. 5. United States. "United States" means the United States of America.
    Subd. 6. County board. "County board" means the county board of any county in this state.
    Subd. 7. Project. "Project" means any resettlement project or rural rehabilitation project for
resettlement purposes of the United States located within a political subdivision and includes the
persons inhabiting such a project.
    Subd. 8. Governing body. "Governing body" means the council, board, body, or persons in
which the powers of a subdivision as a body corporate, or otherwise, are vested.
    Subd. 9. Fund. "Fund" means, unless otherwise expressed, the "government project fund"
to be established pursuant to section 471.54.
    Subd. 10. Public accountant. "Public accountant" means a certified public accountant or a
certified public accounting firm licensed by the board of accountancy under chapter 326A.
History: 1941 c 480 s 1; 1992 c 592 s 9; 1995 c 186 s 119; 2001 c 109 art 2 s 8

471.50 COUNTY BOARD MAY MAKE AGREEMENTS IN REGARD TO TAXES.
The county board of any county in this state is hereby authorized and empowered to make
requests of the United States for and on behalf of the county and the political subdivisions whose
jurisdictional limits are within or coextensive with the limits of the county, for the payment of
such sums in lieu of taxes as the United States may agree to pay, and to enter into agreements
with the United States, in the name of the county, for the performance of services by the county
and such political subdivisions for the benefit of the project and for the payment by the United
States to the county, in one or more installments, of such sums in lieu of taxes; provided, that
at least ten days' notice, in writing, of the meeting of the county board at which such proposed
agreement will be considered and acted upon shall be given by the county auditor to the clerk of
each political subdivision affected.
History: 1941 c 480 s 2

471.51 AGREEMENT TO STATE YEARS PAYMENTS ARE MADE FOR.
Every such agreement shall state the year or years for which the payments are to be made in
lieu of the taxes that would have been levied upon the premises concerned for such year or years
if the same has been subject to taxation. All payments made by the United States under any such
agreement shall be received by the county treasurer and shall be distributed in the same manner
and in the same proportions as such taxes for each year or years would have been distributed.
History: 1941 c 480 s 3

471.52 APPORTIONMENT OF PAYMENTS.
Each agreement entered into pursuant to section 471.50 shall contain the names of the
political subdivisions with respect to which it is consummated, and a statement of the proportionate
share of the payment by the United States to which each subdivision shall be entitled.
History: 1941 c 480 s 4

471.53 WHO MAY MAKE REQUESTS.
If the United States declines to deal with a county board with respect to any political
subdivision whose jurisdictional limits are within or coextensive with the limits of the county,
or in the event the jurisdictional limits of a political subdivision lie in more than one county,
that subdivision is hereby authorized to make request of the United States for payment of such
sums in lieu of taxes as the United States may agree to pay, and is hereby empowered to enter
into agreements with the United States for the performance by the subdivision of services for
the benefit of a project and for the payment by the United States to the subdivision, in one or
more installments of such sums in lieu of taxes. The amount of such payment may be based
upon the cost of performing such services during the period of the agreement, after taking into
consideration the benefits to be derived by the subdivision from the project, but shall not be in
excess of the taxes which would result to the political subdivision during such period if the
real property of the project within the political subdivision were taxable. When any payment is
received by a subdivision under an agreement entered into pursuant to this section, the governing
body of such subdivision shall issue a receipt for such payment.
History: 1941 c 480 s 5

471.54 USE OF MONEY.
All money received by a political subdivision hereunder shall be used in like manner as the
proceeds of taxes upon the premises concerned.
History: 1941 c 480 s 6

471.55 CONSTRUCTION OF SECTIONS 471.49 TO 471.55.
No provision of sections 471.49 to 471.55 shall be construed to relieve any political
subdivision of this state, in the absence of an agreement for payment of sums in lieu of taxes by
the United States as provided therein, of the duty of furnishing, for the benefit of a project, all
services which the subdivision usually furnishes for property in and persons residing within the
subdivision without a payment of sums in lieu of taxes.
History: 1941 c 480 s 7

471.56 [Repealed, 1996 c 399 art 1 s 11]

471.561 [Repealed, 1976 c 324 s 27]

ECONOMIC DEVELOPMENT LOAN REPAYMENT

471.562 DEFINITIONS.
    Subdivision 1. Applicability. In sections 471.562 to 471.564, the terms defined in this
section have the meanings given in this section.
    Subd. 2. Economic development loan repayment. "Economic development loan
repayment" means any payment received or to be received by a municipality with respect to a
loan made by the municipality for economic development purposes from the proceeds of a federal
or state grant, from the proceeds of bonds issued pursuant to section 471.564 or from municipal
resources appropriated for that purpose.
    Subd. 3. Municipality. "Municipality" means a statutory city, a home rule charter city, a
housing and redevelopment authority created pursuant to, or exercising the powers of such an
authority contained in, chapter 469, a port authority created pursuant to, or exercising the powers
of such an authority contained in, chapter 469, or an economic development authority created
pursuant to or exercising the powers of such an authority contained in chapter 469.
    Subd. 4. Project. "Project" means an industrial development district as defined in section
469.058, subdivision 1; a project as defined in section 469.002, subdivision 12; a development
district as defined in sections 469.124 to 469.134 or any special law; or a project as defined
in section 469.153, subdivision 2.
    Subd. 5. Secondary market. A municipality may sell, at private or public sale, at the price
or prices determined by the municipality, a note, mortgage, lease, sublease, lease purchase, or
other instrument or obligation evidencing or securing a loan described in subdivision 2.
History: 1987 c 344 s 10; 1989 c 209 art 2 s 44; 1994 c 614 s 14,15

471.563 USES OF LOAN REPAYMENTS.
Subject to any restrictions imposed on their use by any related federal or state grant,
economic development loan repayments and the proceeds of any bonds issued pursuant to section
471.564 may be applied by a municipality to any of the following purposes:
(1) to finance or otherwise pay the costs of a project;
(2) to pay principal and interest on any bonds issued pursuant to section 469.178, with
respect to a project, certification of which is requested before August 1, 1987, or pursuant to
chapter 474, 458, 462, or section 471.564, to purchase insurance or other credit enhancement for
any of those obligations or to create or maintain reserves therefor; or
(3) for any other purpose authorized by law.
If economic development loan repayments are used to pay principal or interest on any such
obligations, the municipality may be reimbursed for the amount so applied with interest not
exceeding the rate of interest on the obligations from subsequent collections of taxes or other
revenues that had been designated as the primary source of payment of the obligations.
History: 1987 c 344 s 11; 1989 c 209 art 2 s 45

471.564 BONDS.
A municipality may by resolution authorize, issue, and sell revenue bonds payable from
all or any portion of a municipality's economic development loan repayments to finance any
expenditure the municipality is authorized to make under section 471.563. The bonds may be
issued in one or more series and sold at public or private sale and at the prices the municipality
may determine. The bonds may be secured, bear interest at the rate or rates, have the rank
or priority, be executed in the manner, mature and be subject to the defaults, redemptions,
repurchases, tender options, or other terms that the municipality determines. The municipality
may enter into and perform all contracts deemed necessary or desirable by it to issue the bonds
and apply the proceeds of the bonds, including an indenture of trust with a trustee within or
without the state, a loan agreement, lease or installment sale contract in connection with the
project to be financed, or a guaranty of the bonds or related instrument. The bonds may be further
secured by any pledge or mortgage securing the economic development loan repayments pledged
to the bonds. The bonds, and the bonds shall so state, shall not be payable from nor charged
upon any funds other than the economic development loan repayments and property pledged or
mortgaged to the payment thereof. The municipality shall not have the power to obligate itself to
pay the bonds from funds other than the economic development loan repayments and properties
pledged and mortgaged. No owner or owners of the bonds shall ever have the right to compel any
exercise of the taxing powers of the municipality to pay the principal of or interest on any such
bonds or to enforce payment thereof against any other property of the municipality. Bonds may
be issued under this section and their proceeds loaned to a nongovernmental person or entity,
only if the municipality estimates that the economic development loan repayments pledged to
the payment of principal and interest, exclusive of economic development loan repayments to
be made by the person or entity, if paid to the municipality in accordance with their terms, are
sufficient to pay principal and interest on the bonds when due.
History: 1987 c 344 s 12

MORE MISCELLANY

471.57 PUBLIC WORKS RESERVE FUND.
    Subdivision 1. Tax levy. The council of any city, however organized, may establish by
ordinance a public works reserve fund and may annually levy taxes within existing charter limits
for the support of such fund. It may, by the ordinance establishing the fund, designate a specific
capital improvement or a type of capital improvement for which the fund is to be used. The
proceeds of taxes levied for its support shall be paid into the public works reserve fund. There
may be paid into such fund any other revenue not required by statute or charter to be paid into
some other fund or used for purposes other than those provided in this section for the use of the
public works reserve fund.
    Subd. 2. Purposes. Except as provided in subdivision 3, the public works reserve fund shall
be used only for the specific capital improvement or type of capital improvement designated
by the ordinance establishing the fund. If not so designated, it shall be used only for capital
improvements of a type for which the municipality establishing the fund is authorized to issue
bonds. The term "capital improvement" does not include the construction or acquisition of any
steam heat, telephone, gas or electric plant or system. No expenditures shall be made from the
public works reserve fund before the first fiscal year following cessation of hostilities in the
present war as declared by proper federal authority.
    Subd. 3. May use fund for other purposes upon vote. The council of any municipality
which has established a public works reserve fund by an ordinance designating the specific
improvement or type of capital improvement for which the fund may be used may submit to the
voters of the municipality at any regular or special election the question of using the fund for
some other purpose. If a majority of the votes cast on the question are in favor of such diversion
from the original purpose of the fund, it may be used for any purpose so approved by the voters.
History: 1943 c 437; 1973 c 123 art 5 s 7; 1994 c 505 art 3 s 14

471.571 PERMANENT IMPROVEMENT FUND, CERTAIN CITIES.
    Subdivision 1. Application. This section applies to each city in which the net tax capacity of
real and personal property consists in part of iron ore or lands containing taconite or semitaconite
and in which the total taxable market value of real and personal property exceeds $2,500,000.
    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a permanent
improvement and replacement fund to be maintained by an annual tax levy. The governing body
may levy a tax in excess of any charter limitation for the support of the permanent improvement
and replacement fund, but not exceeding the following:
(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 per capita
or 0.08059 percent of taxable market value;
(b) in cities having a population of more than 500 and less than 2500, the greater of $12.50
per capita or $10,000 but not exceeding 0.08059 percent of taxable market value;
(c) in cities having a population of more than 2500 inhabitants, the greater of $10 per capita
or $31,500 but not exceeding 0.08059 percent of taxable market value.
    Subd. 3. Expenditure from fund, limitation. No expenditure for any one project in excess
of 60 percent of one year's levy or $25,000, whichever is greater, may be made from such
permanent improvement or replacement fund in any year without first obtaining the approval of
a majority of the voters voting at a general or special municipal election at which the question
of making such expenditure has been submitted. In submitting any proposal to the voters for
approval, the amount proposed to be spent and the purpose thereof shall be stated in the proposal
submitted. The proceeds of such levies may be pledged for the payment of any bonds issued
pursuant to law for any purposes authorized hereby and annual payments upon such bonds or
interest may be made without additional authorization.
    Subd. 4. Additional to charter fund. When any such city shall be created by charter
provision or otherwise any permanent improvement or replacement fund, the funds from the
collection of taxes provided for in subdivision 2 shall be in addition to and in excess of any
amount or limitations on the tax levies provided in any of its charter provisions.
    Subd. 5. Use of fund. Any such city may use such fund for any permanent improvement
authorized by law and for the betterment, including reconstruction, extension, major improvement
or rehabilitation, or remodeling, of any public building or municipal facility, but not including
ordinary current repairs thereto. Nothing herein shall restrict any powers which any city may have
under existing law. In the event the moneys in said fund exceed the amounts necessary for any of
the purposes for which such fund may be used, and the council shall adopt a resolution to that
effect, the excess may be used for other authorized municipal purposes.
History: 1955 c 638 s 1-5; 1957 c 614 s 1-4; 1965 c 145 s 1; 1973 c 123 art 5 s 7; 1973 c 773
s 1; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 70,71; 1989 c 329 art 13 s 20; 1992 c 511 art 5 s 14

471.572 INFRASTRUCTURE REPLACEMENT RESERVE FUND.
    Subdivision 1. Definitions. For purposes of this section, the following terms have the
meanings given:
"Reserve fund" means the infrastructure replacement reserve fund.
"City" means a statutory or home rule charter city.
    Subd. 2. Tax levy. The governing body of a city may establish, by a two-thirds vote of
all its members, by ordinance or resolution a reserve fund and may annually levy a property
tax for the support of the fund. The proceeds of taxes levied for its support must be paid into
the reserve fund. Any other revenue from a source not required by law to be paid into another
fund for purposes other than those provided for the use of the reserve fund may be paid into the
fund. Before a tax is levied under this section, the city must publish in the official newspaper of
the city an initial resolution authorizing the tax levy. If within ten days after the publication a
petition is filed with the city clerk requesting an election on the tax levy signed by a number of
qualified voters greater than ten percent of the number who voted in the city at the last general
election, the tax may not be levied until the levy has been approved by a majority of the votes cast
on it at a regular or special election.
    Subd. 3. Purposes. The reserve fund may be used only for the replacement of streets,
bridges, curbs, gutters, sidewalks, trees, and storm sewers.
    Subd. 4. Use of fund for a specific purpose. If the city has established a reserve fund, it may
submit to the voters at a regular or special election the question of whether use of the fund should
be restricted to a specific improvement or type of capital improvement. If a majority of the votes
cast on the question are in favor of the limitation on the use of the reserve fund, it may be used
only for the purpose approved by the voters.
    Subd. 5. Hearing; notice. A reserve fund may not be established until after a public hearing
is held on the question. Notice of the time, place, and purpose of the hearing must be published
for two successive weeks in the official newspaper of the city. The second publication must be not
later than seven days before the date of the hearing.
    Subd. 6. Termination of fund. The city may terminate a reserve fund at any time in
the same manner as the fund was established. Upon termination of the fund any balance is
irrevocably appropriated to the debt service fund of the city to be used solely to reduce tax levies
for or bonded indebtedness of the city or, if the city has no bonded indebtedness, for capital
improvements authorized by this section.
History: 1986 c 465 art 2 s 14; 1988 c 419 s 1; 1Sp1989 c 1 art 5 s 37

471.58 RANGE ASSOCIATION OF MUNICIPALITIES AND SCHOOLS; DUES.
For the purpose of providing an areawide approach to problems which demand coordinated
and cooperative actions and which are common to those areas of northeast Minnesota affected by
operations involved in mining iron ore and taconite and producing concentrate therefrom, and
for the purpose of promoting the general welfare and economic development of the cities, towns
and school districts within the iron ranges area of northeast Minnesota, any city, town or school
district in which the net tax capacity consists in part of iron ore, or lands containing taconite or
semitaconite or which is located in whole or part in the tax relief area defined by section 273.134,
paragraph (b) , may pay annual dues in the Range Association of Municipalities and Schools. The
association may sue, be sued, intervene and act in a civil action in which the outcome of the
action will have an effect upon the interest of any of its members.
History: 1943 c 517 s 1; 1965 c 309 s 1; 1973 c 123 art 5 s 7; 1978 c 575 s 1; 1979 c 124 s
1; 1983 c 64 s 1; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1Sp2001 c 5 art 6 s 37

471.59 JOINT EXERCISE OF POWERS.
    Subdivision 1. Agreement. Two or more governmental units, by agreement entered into
through action of their governing bodies, may jointly or cooperatively exercise any power
common to the contracting parties or any similar powers, including those which are the same
except for the territorial limits within which they may be exercised. The agreement may provide
for the exercise of such powers by one or more of the participating governmental units on
behalf of the other participating units. The term "governmental unit" as used in this section
includes every city, county, town, school district, independent nonprofit firefighting corporation,
other political subdivision of this or another state, another state, the University of Minnesota,
nonprofit hospitals licensed under sections 144.50 to 144.56, rehabilitation facilities and extended
employment providers that are certified by the commissioner of employment and economic
development, day training and habilitation services licensed under sections 245B.01 to 245B.08,
and any agency of the state of Minnesota or the United States, and includes any instrumentality of
a governmental unit. For the purpose of this section, an instrumentality of a governmental unit
means an instrumentality having independent policy making and appropriating authority.
    Subd. 1a. Liability. (a) A governmental unit participating in a joint venture or joint
enterprise, including participation in a cooperative activity undertaken pursuant to this section or
other law, is not liable for the acts or omissions of another governmental unit participating in the
joint venture or joint enterprise, unless the participating governmental unit has agreed in writing
to be responsible for the acts or omissions of another participating governmental unit.
(b) For purposes of determining total liability for damages, the participating governmental
units and the joint board, if one is established, are considered a single governmental unit and the
total liability for the participating governmental units and the joint board, if established, shall not
exceed the limits on governmental liability for a single governmental unit as specified in section
3.736 or 466.04, subdivision 1, or as waived or extended by the joint board or all participating
governmental units under section 3.736, subdivision 8; 466.06; or 471.981. This paragraph does
not protect a governmental unit from liability for its own independent acts or omissions not
directly related to the joint activity.
(c) If a participating governmental unit has procured or extended insurance coverage pursuant
to section 3.736, subdivision 8; 466.06; or 471.981 in excess of the limits on governmental
liability under section 3.736 or 466.04, subdivision 1, covering participation in the joint venture
or joint enterprise, the procurement of that insurance constitutes a waiver of the limits of
governmental liability for that governmental unit to the extent that valid and collectable insurance
or self-insurance, including, where applicable, proceeds from the Minnesota Guarantee Fund,
exceeds those limits and covers that governmental unit's liability for the claim, if any.
    Subd. 2. Agreement to state purpose. Such agreement shall state the purpose of the
agreement or the power to be exercised and it shall provide for the method by which the purpose
sought shall be accomplished or the manner in which the power shall be exercised. When the
agreement provides for use of a joint board, the board shall be representative of the parties to the
agreement. A joint board that is formed for educational purposes may conduct public meetings
via interactive television if the board complies with chapter 13D in each location where board
members are present. Irrespective of the number, composition, terms, or qualifications of its
members, such board is deemed to comply with statutory or charter provisions for a board for the
exercise by any one of the parties of the power which is the subject of the agreement.
    Subd. 3. Disbursement of funds. The parties to such agreement may provide for
disbursements from public funds to carry out the purposes of the agreement. Funds may be paid
to and disbursed by such agency as may be agreed upon, but the method of disbursement shall
agree as far as practicable with the method provided by law for the disbursement of funds by the
parties to the agreement. Contracts let and purchases made under the agreement shall conform
to the requirements applicable to contracts and purchases of any one of the parties, as specified
in the agreement. Strict accountability of all funds and report of all receipts and disbursements
shall be provided for.
    Subd. 4. Termination of agreement. Such agreement may be continued for a definite term
or until rescinded or terminated in accordance with its terms.
    Subd. 5. Shall provide for distribution of property. Such agreement shall provide for the
disposition of any property acquired as the result of such joint or cooperative exercise of powers,
and the return of any surplus moneys in proportion to contributions of the several contracting
parties after the purpose of the agreement has been completed.
    Subd. 6. Residence requirement. Residence requirements for holding office in any
governmental unit shall not apply to any officer appointed to carry out any such agreement.
    Subd. 7. Not to affect other acts. This section does not dispense with procedural
requirements of any other act providing for the joint or cooperative exercise of any governmental
power.
    Subd. 8. Services performed by county, commonality of powers. Notwithstanding the
provisions of subdivision 1 requiring commonality of powers between parties to any agreement
the board of county commissioners of any county may by resolution enter into agreements with
any other governmental unit as defined in subdivision 1 to perform on behalf of that unit any
service or function which that unit would be authorized to provide for itself.
    Subd. 9. Exercise of power. For the purposes of the development, coordination, presentation
and evaluation of training programs for local government officials, governmental units may
exercise their powers under this section in conjunction with organizations representing
governmental units and local government officials.
    Subd. 10. Services performed by governmental units; commonality of powers.
Notwithstanding the provisions of subdivision 1 requiring commonality of powers between
parties to any agreement, the governing body of any governmental unit as defined in subdivision 1
may enter into agreements with any other governmental unit to perform on behalf of that unit any
service or function which the governmental unit providing the service or function is authorized
to provide for itself.
    Subd. 11. Joint powers board. (a) Two or more governmental units, through action of their
governing bodies, by adoption of a joint powers agreement that complies with the provisions of
subdivisions 1 to 5, may establish a joint board to issue bonds or obligations under any law by
which any of the governmental units establishing the joint board may independently issue bonds
or obligations and may use the proceeds of the bonds or obligations to carry out the purposes
of the law under which the bonds or obligations are issued. A joint board established under this
section may issue obligations and other forms of indebtedness only in accordance with express
authority granted by the action of the governing bodies of the governmental units that established
the joint board. Except as provided in paragraphs (b) and (c), the joint board established under this
subdivision must be composed solely of members of the governing bodies of the governmental
unit that established the joint board. A joint board established under this subdivision may not
pledge the full faith and credit or taxing power of any of the governmental units that established
the joint board. The obligations or other forms of indebtedness must be obligations of the joint
board issued on behalf of the governmental units creating the joint board. The obligations or other
forms of indebtedness must be issued in the same manner and subject to the same conditions and
limitations that would apply if the obligations were issued or indebtedness incurred by one of the
governmental units that established the joint board, provided that any reference to a governmental
unit in the statute, law, or charter provision authorizing the issuance of the bonds or the incurring
of the indebtedness is considered a reference to the joint board.
(b) Notwithstanding paragraph (a), one school district, one county, and one public health
entity, through action of their governing bodies, may establish a joint board to establish and
govern a family services collaborative under section 124D.23. The school district, county, and
public health entity may include other governmental entities at their discretion. The membership
of a board established under this paragraph, in addition to members of the governing bodies
of the participating governmental units, must include the representation required by section
124D.23, subdivision 1, paragraph (a), selected in accordance with section 124D.23, subdivision
1 , paragraph (c).
(c) Notwithstanding paragraph (a), counties, school districts, and mental health entities,
through action of their governing bodies, may establish a joint board to establish and govern a
children's mental health collaborative under sections 245.491 to 245.495, or a collaborative
established by the merger of a children's mental health collaborative and a family services
collaborative under section 124D.23. The county, school district, and mental health entities
may include other entities at their discretion. The membership of a board established under this
paragraph, in addition to members of the governing bodies of the participating governmental
units, must include the representation provided by section 245.493, subdivision 1.
    Subd. 12. Joint exercise of police power. In the event that an agreement authorizes the
exercise of peace officer or police powers by an officer appointed by one of the governmental
units within the jurisdiction of the other governmental unit, an officer acting pursuant to that
agreement has the full and complete authority of a peace officer as though appointed by both
governmental units and licensed by the state of Minnesota, provided that:
(1) the peace officer has successfully completed professionally recognized peace officer
preemployment education which the Minnesota Board of Peace Officer Standards and Training
has found comparable to Minnesota peace officer preemployment education; and
(2) the officer is duly licensed or certified by the peace officer licensing or certification
authority of the state in which the officer's appointing authority is located.
    Subd. 13. Joint powers board for housing. (a) For purposes of implementing a federal
court order or decree, two or more housing and redevelopment authorities, or public entities
exercising the public housing powers of housing and redevelopment authorities, may by adoption
of a joint powers agreement that complies with the provisions of subdivisions 1 to 5, establish
a joint board for the purpose of acquiring an interest in, rehabilitating, constructing, owning,
or managing low-rent public housing located in the metropolitan area, as defined in section
473.121, subdivision 2, and financed, in whole or in part, with federal financial assistance under
Section 5 of the United States Housing Act of 1937. The joint board established pursuant to
this subdivision shall:
(1) be composed of members designated by the governing bodies of the governmental units
which established such joint board and possess such representative and voting power provided by
the joint powers agreement;
(2) constitute a public body, corporate, and politic; and
(3) notwithstanding the provisions of subdivision 1, requiring commonality of powers
between parties to a joint powers agreement, and solely for the purpose of acquiring an interest in,
rehabilitating, constructing, owning, or managing federally financed low-rent public housing,
shall possess all of the powers and duties contained in sections 469.001 to 469.047 and, if at least
one participant is an economic development authority, sections 469.090 to 469.1081, except (i)
as may be otherwise limited by the terms of the joint powers agreement; and (ii) a joint board
shall not have the power to tax pursuant to section 469.033, subdivision 6, or 469.107, nor shall
it exercise the power of eminent domain. Every joint powers agreement establishing a joint
board shall specifically provide which and under what circumstances the powers granted herein
may be exercised by that joint board.
(b) If a housing and redevelopment authority exists in a city which intends to participate in
the creation of a joint board pursuant to paragraph (a), such housing and redevelopment authority
shall be the governmental unit which enters into the joint powers agreement unless it determines
not to do so, in which event the governmental entity which enters into the joint powers agreement
may be any public entity of that city which exercises the low-rent public housing powers of a
housing and redevelopment authority.
(c) A joint board shall not make any contract with the federal government for low-rent
public housing, unless the governing body or bodies creating the participating authority in whose
jurisdiction the housing is located has, by resolution, approved the provision of that low-rent
public housing.
(d) This subdivision does not apply to any housing and redevelopment authority, or public
entity exercising the powers of a housing and redevelopment authority, within the jurisdiction of
a county housing and redevelopment authority which is actively carrying out a public housing
program under Section 5 of the United States Housing Act of 1937. For purposes of this
paragraph, a county housing and redevelopment authority is considered to be actively carrying out
a public housing program under Section 5 of the United States Housing Act of 1937, if it (1) owns
200 or more public housing units constructed under Section 5 of the United States Housing Act of
1937, and (2) has applied for public housing development funds under Section 5 of the United
States Housing Act of 1937, during the three years immediately preceding January 1, 1996.
(e) For purposes of sections 469.001 to 469.047, "city" means the city in which the housing
units with respect to which the joint board was created are located and "governing body" or
"governing body creating the authority" means the council of such city.
History: 1943 c 557; 1949 c 448 s 1-3; 1961 c 662 s 1,2; 1965 c 744 s 1-3; 1973 c 123 art 5
s 7; 1973 c 541 s 1; 1975 c 134 s 1,2; 1980 c 532 s 2; 1982 c 507 s 27; 1983 c 342 art 8 s 15; 1984
c 495 s 1; 1986 c 465 art 2 s 15; 1990 c 572 s 14; 1991 c 44 s 3; 1996 c 412 art 3 s 35; 1996 c 464
art 1 s 1; 1996 c 471 art 3 s 39; 1997 c 203 art 5 s 24; 1998 c 397 art 11 s 3; 1999 c 214 art 2 s
17; 2001 c 7 s 78; 1Sp2003 c 14 art 7 s 83; art 11 s 11; 2005 c 9 s 2; 2006 c 232 s 3; 2007 c 43 s 1

471.591 EXTENSION OF MUNICIPAL SERVICES.
    Subdivision 1. Early joint meeting. In the beginning stage of the planning process, and
before preparation of any detailed technical plans for the extension of municipal services into an
unincorporated area, a city shall meet at least once with the town board of the affected area and
the county planning commission, in joint session, to review the plans and consider the comments
of the town board and the county planning commission. The city may thereafter proceed to
undertake the proposed extension in accordance with applicable law. Any duly organized sewer
district or sanitary district created pursuant to special law or pursuant to chapter 115 or 116A,
sections 473.501 to 473.549, or section 103F.801 is not affected by this section.
    Subd. 2. Municipal service defined. For the purposes of this section, "municipal service"
means sewer, water, electrical, or other utility service.
History: 1974 c 530 s 1,2; 1980 c 509 s 170; 1990 c 391 art 8 s 52

471.60 [Renumbered 435.19]

471.61 GROUP BENEFITS FOR OFFICERS, EMPLOYEES, RETIREES.
    Subdivision 1. Officers, employees. A county, municipal corporation, town, school district,
county extension committee, other political subdivision or other body corporate and politic of this
state, other than the state or any department of the state, through its governing body, and any two
or more subdivisions acting jointly through their governing bodies, may insure or protect its or
their officers and employees, and their dependents, or any class or classes of officers, employees,
or dependents, under a policy or policies or contract or contracts of group insurance or benefits
covering life, health, and accident, in the case of employees, and medical and surgical benefits
and hospitalization insurance or benefits for both employees and dependents or dependents of an
employee whose death was due to causes arising out of and in the course of employment, or any
one or more of those forms of insurance or protection. A governmental unit, including county
extension committees and those paying their employees, may pay all or any part of the premiums
or charges on the insurance or protection. A payment is deemed to be additional compensation
paid to the officers or employees, but for purposes of determining contributions or benefits under
a public pension or retirement system it is not deemed to be additional compensation. One or
more governmental units may determine that a person is an officer or employee if the person
receives income from the governmental subdivisions without regard to the manner of election
or appointment, including but not limited to employees of county historical societies that
receive funding from the county and employees of the Minnesota Inter-county Association. The
appropriate officer of the governmental unit, or those disbursing county extension funds, shall
deduct from the salary or wages of each officer and employee who elects to become insured or so
protected, on the officer's or employee's written order, all or part of the officer's or employee's
share of premiums or charges and remit the share or portion to the insurer or company issuing
the policy or contract.
A governmental unit, other than a school district, that pays all or part of the premiums or
charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy for the
purpose of providing the necessary money for the payment of the premiums or charges, and the
sums levied and appropriated are not, in the event the sum exceeds the maximum sum allowed
by the charter of a municipal corporation, considered part of the cost of government of the
governmental unit as defined in any levy or expenditure limitation; provided at least 50 percent
of the cost of benefits on dependents must be contributed by the employee or be paid by levies
within existing charter tax limitations.
The word "dependents" as used in this subdivision means spouse and minor unmarried
children under the age of 18 years actually dependent upon the employee.
    Subd. 1a. Dependents. Notwithstanding the provisions of Minnesota Statutes 1969, section
471.61, as amended by Laws 1971, chapter 451, section 1, the word "dependents" as used therein
shall mean spouse and minor unmarried children under the age of 18 years and dependent students
under the age of 25 years actually dependent upon the employee.
    Subd. 1b.[Repealed, 1980 c 528 s 5; 1Sp1981 c 4 art 2 s 44]
    Subd. 2.[Repealed, 1953 c 696 s 4]
    Subd. 2a. Retired officers, employees. Any county, municipal corporation, town, school
district, county extension committee, other political subdivision or other body corporate and
politic of this state, including the state or any department thereof, through its governing body, and
any two or more subdivisions acting jointly through their governing bodies, may insure or protect
its or their retired officers and retired employees entitled to benefits under any public employees
retirement act and their dependents, or any class or classes thereof, under a policy or policies, or
contract or contracts of group insurance or benefits covering life, health, and accident, medical
and surgical benefits, or hospitalization insurance or benefits, for retired officers and retired
employees and their dependents, or any one or more of such forms of insurance or protection.
Any such governmental unit, including county extension committees, may pay all or any part
of the premiums or charges on such insurance or protection or may require the retired officer or
employee to pay all or part of the premiums or charges. Any one or more of such governmental
units may determine that a person is a retired officer or a retired employee if such officer or
employee, when employed, received income from such governmental subdivisions without regard
to the manner of election or appointment. The appropriate officer of such governmental unit, or
those disbursing county extension funds, shall collect from each such retired officer and retired
employee who elects to become insured or so protected, on such officer's or employee's written
order, all or part of the retired officer's or retired employee's share of such premiums or charges
and remit the same to the insurer or company issuing such policy or contract. An insurer, health
maintenance organization, or company issuing the policy or contract may not require a public
employer to contribute any portion of the retired officer's or employee's share as a condition
of eligibility for the insurance or protection. An insurer, health maintenance organization, or
company issuing the policy or contract may require a retired officer or a retired employee to pay
all or any part of the premiums or charges.
Any governmental unit, other than a school district, which pays all or any part of such
premiums or charges is authorized to levy and collect a tax, if necessary, in the next annual tax
levy for the purpose of providing the necessary funds for the payment of such premiums or
charges, and such sums so levied and appropriated shall not, in the event such sum exceeds the
maximum sum allowed by the charter of a municipal corporation, be considered part of the cost of
government of such governmental unit as defined in any tax or expenditure limitation; provided at
least 50 percent of the cost of benefits on dependents shall be contributed by the retired officer or
retired employee or be paid by levies within existing charter tax limitations.
The word "dependents" as used herein shall mean spouse and minor unmarried children
under the age of 18 years actually dependent upon the retired officer or retired employee.
    Subd. 2b. Insurance continuation. A unit of local government must allow a former
employee and the employee's dependents to continue to participate indefinitely in the
employer-sponsored hospital, medical, and dental insurance group that the employee participated
in immediately before retirement, under the following conditions:
(a) The continuation requirement of this subdivision applies only to a former employee who
is receiving a disability benefit or an annuity from a Minnesota public pension plan other than a
volunteer firefighter plan, or who has met age and service requirements necessary to receive an
annuity from such a plan.
(b) Until the former employee reaches age 65, the former employee and dependents must
be pooled in the same group as active employees for purposes of establishing premiums and
coverage for hospital, medical, and dental insurance.
(c) A former employee may receive dependent coverage only if the employee received
dependent coverage immediately before leaving employment. This subdivision does not require
dependent coverage to continue after the death of the former employee. For purposes of this
subdivision, "dependent" has the same meaning for former employees as it does for active
employees in the unit of local government.
(d) Coverage for a former employee and dependents may not discriminate on the basis of
evidence of insurability or preexisting conditions unless identical conditions are imposed on
active employees in the group that the employee left.
(e) The former employee must pay the entire premium for continuation coverage, except
as otherwise provided in a collective bargaining agreement or personnel policy. A unit of local
government may discontinue coverage if a former employee fails to pay the premium within the
deadline provided for payment of premiums under federal law governing insurance continuation.
(f) An employer must notify an employee before termination of employment of the options
available under this subdivision, and of the deadline for electing to continue to participate.
(g) A former employee must notify the employer of intent to participate within the deadline
provided for notice of insurance continuation under federal law. A former employee who does not
elect to continue participation does not have a right to reenter the employer's group insurance
program.
(h) A former employee who initially selects dependent coverage may later drop dependent
coverage while retaining individual coverage. A former employee may not drop individual
coverage and retain dependent coverage.
(i) This subdivision does not limit rights granted to former employees under other state or
federal law, or under collective bargaining agreements or personnel plans.
(j) Unless otherwise provided by a collective bargaining agreement, if retired employees
were not permitted to remain in the active employee group prior to August 1, 1992, a public
employer may assess active employees through payroll deduction for all or part of the additional
premium costs from the inclusion of retired employees in the active employee group. This
paragraph does not apply to employees covered by section 179A.03, subdivision 7.
(k) Notwithstanding section 179A.20, subdivision 2a, insurance continuation under this
subdivision may be provided for in a collective bargaining agreement or personnel policy.
    Subd. 3. Payroll deductions. A like payroll deduction and remittance shall be made upon the
written order of any such officer or employee who are, or become, subscribers under a contract
with a nonprofit hospital service plan corporation as defined by law.
    Subd. 4.[Repealed, 1965 c 780 s 9]
    Subd. 5. Provision of long-term care insurance. Any political subdivision, or any two or
more political subdivisions acting jointly, may contract with an insurance company licensed to do
business in this state for the voluntary purchase of long-term care insurance by the employees
and their dependents of the political subdivision or subdivisions. The coverage may be through a
group policy or through individual coverage.
History: 1943 c 615 s 1-4; 1955 c 193 s 1,2; 1957 c 321 s 1; 1959 c 611 s 1; Ex1959 c 76 s
1; 1965 c 296 s 1,2; 1971 c 451 s 1; Ex1971 c 31 art 20 s 13,14; Ex1971 c 48 s 16; 1973 c 385 s
1; 1973 c 725 s 68-70; 1978 c 764 s 127; 1979 c 334 art 6 s 26; 1982 c 602 s 1; 1984 c 463 art 7
s 22,23; 1986 c 321 s 1; 1986 c 444; 1988 c 709 art 2 s 2; 1992 c 488 s 3; 1994 c 505 art 3 s
15,16; 2000 c 273 s 1; 1Sp2005 c 4 art 5 s 16; 2007 c 6 s 3

471.611 RETIREES' HEALTH INSURANCE BENEFITS.
    Subdivision 1. Accounting. A unit of local government that agrees to make payments for
health insurance benefits for retired employees shall identify the amount required to pay the
cost of those benefits during the period in which the contract or personnel policy providing for
those benefits is in effect and shall record the amount as an expenditure, according to generally
accepted accounting principles, in the fiscal year or years during which the payments are to
be made. A school district is in compliance with this subdivision if it complies with section
123B.77, subdivision 6. Provision of these benefits under a personnel policy must be approved, as
a separate action, by the governing body of the employing governmental unit.
    Subd. 2. Coordination. A unit of local government that funds all or part of the cost of health
care benefits for a retired employee must provide for coverage to be coordinated with applicable
benefits provided through the federally sponsored Medicare program.
History: 1988 c 605 s 11; 1998 c 397 art 11 s 3

471.615 INDIVIDUAL ANNUITY FOR PUBLIC OFFICER, EMPLOYEE.
At the request of an officer or employee and as part of a compensation arrangement, the
governing body of any city, town, county, school district, public corporation, public authority,
special district or other political subdivision, or the commissioner of administration of the state of
Minnesota may negotiate and purchase an individual annuity contract from a company licensed to
do business in the state of Minnesota for an officer or employee for retirement or other purposes
and may make payroll allocations in accordance with such arrangement for the purpose of paying
the entire premium due or to become due under such contract. The allocation shall be made in a
manner which will qualify the annuity premiums, or a portion thereof, for the benefit afforded
under Section 403(b) of the current Federal Internal Revenue Code or any equivalent provisions
of subsequent federal income tax law. The officer or employee shall own such contract and
have rights thereunder that shall be nonforfeitable except for failure to pay premiums. This
section shall be applied in a nondiscriminatory manner to officers and employees of the political
subdivisions herein named.
History: 1971 c 266 s 1; 1973 c 123 art 5 s 7; 1986 c 444

471.6151 CONTRIBUTIONS FROM LAWFUL GAMBLING ORGANIZATIONS.
Contributions of receipts derived from lawful gambling to a statutory or home rule charter
city, county, or town made by an organization licensed to conduct lawful gambling under chapter
349 may not be used for the benefit of a pension or retirement fund.
History: 1993 c 244 art 5 s 2

471.616 [Repealed, 1989 c 90 s 3]

471.6161 GROUP INSURANCE; GOVERNMENTAL UNITS.
    Subdivision 1. Group insurance coverage. "Group insurance coverage" means benefit
coverage provided to a group through a carrier authorized under chapters 61A, 62A, 62C, and
62D to do business in the state.
    Subd. 2. Request for proposal. Every political subdivision authorized by law to purchase
group insurance for its employees and providing or intending to provide group insurance coverage
and benefits for 25 or more of its employees shall request proposals from and enter into contracts
with carriers that in the judgment of the political subdivision are best qualified to provide
coverage. The request for proposals shall be in writing and at a minimum shall include: coverage
to be provided, criteria for evaluation of carrier proposals, and the aggregate claims records for the
appropriate period. A political subdivision may exclude from consideration proposals requiring
self-insurance. Public notice of the request for proposals must be provided in a newspaper or trade
journal at least 21 days before the final date for submitting proposals.
    Subd. 3. Selection of carrier. The political subdivision shall make benefit and cost
comparisons and evaluate the proposals using the written criteria. The political subdivision may
negotiate with the carrier on benefits, premiums, and other contract terms. Carriers applying
must provide the political subdivision with aggregate claims records for the appropriate period.
The political subdivision must prepare a written rationale for its decision before entering into a
contract with a carrier.
    Subd. 4. Contract length; negotiation. Group insurance contracts may not exceed five years
in length, including all extensions. The political subdivision shall request proposals for coverage
at least once every 60 months. Employees may be added to an existing group pursuant to a
joint powers agreement under section 471.59.
    Subd. 5. Collective bargaining. The aggregate value of benefits provided by a group
insurance contract for employees covered by a collective agreement shall not be reduced, unless
the public employer and exclusive representative of the employees of an appropriate bargaining
unit, certified under section 179A.12, agree to a reduction in benefits.
    Subd. 6. Filing of contract. Every political subdivision contracting for and providing group
insurance coverage as provided in this section shall file with the clerk or other comparable
officer of the subdivision a copy of the group insurance contract and make the copy available
for public inspection.
    Subd. 7.[Repealed, 1996 c 305 art 1 s 102]
History: 1989 c 90 s 2

471.617 SELF-INSURANCE OF EMPLOYEE HEALTH BENEFITS.
    Subdivision 1. If more than 100 employees; conditions. A statutory or home rule charter
city, county, school district, or instrumentality thereof which has more than 100 employees, may
by ordinance or resolution self-insure for any employee health benefits including long-term
disability, but not for employee life benefits. Any self-insurance plan shall provide all benefits
which are required by law to be provided by group health insurance policies. Self-insurance plans
must be certified as provided by section 62E.05 and must be filed and certified by the Department
of Commerce before they are issued or delivered to any person in this state.
    Subd. 2. Jointly. Any two or more statutory or home rule charter cities, counties, school
districts, or instrumentalities thereof which together have more than 100 employees may jointly
self-insure for any employee health benefits including long-term disability, but not for employee
life benefits, subject to the same requirements as an individual self-insurer under subdivision 1.
Self-insurance pools under this section are subject to section 62L.045. A self-insurance pool
established and operated by one or more service cooperatives governed by section 123A.21 to
provide coverage described in this subdivision qualifies under this subdivision. The commissioner
of commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for the
operation and administration of self-insurance pools.
    Subd. 3. Stop-loss coverage. Any self-insurance plan covering fewer than 1,000 employees
shall include excess or stop-loss coverage provided by a licensed insurance company, an insurance
company approved pursuant to sections 60A.195 to 60A.209, or service plan corporation, but
excess or stop-loss coverage need not be obtained for long-term disability.
This excess or stop-loss coverage shall cover all eligible claims incurred during the term
of the policy or contract. In addition to excess or stop-loss coverage, the self-insurance plan
shall provide for reserving of an appropriate amount of funds to cover the estimated cost of
claims incurred, but unpaid, during the term of the policy or contract which shall be added to the
expected claim level. These funds shall be in addition to funds reserved to cover the claims paid
during the term of the policy or contract. The excess or stop-loss coverage shall be provided at
levels in excess of self-insured retention which is appropriate, taking into account the number of
covered persons in the group.
    Subd. 4. Exclusive representative. (a) No statutory or home rule charter city or county or
school district or instrumentality of any of them shall adopt a self insured health benefit plan
for any employees represented by an exclusive representative certified pursuant to section
179A.12 without prior notification and consultation on ten days' written notice to the exclusive
representative and agreement by the exclusive representative that represents the largest number of
employees to be included in the plan.
(b) Prior to a decision to dissolve any self-insurance, trust fund, or dedicated insurance fund
created by a single statutory or home rule charter city, county, school district, or instrumentality
of any of them, either by ordinance or resolution, the employer must provide 30 days' written
notice to each exclusive representative of employees and each individual currently receiving
health benefits, and also obtain approval for the proposed action by the exclusive representative
that represents the largest number of employees included in the plan. All assets from the trust
fund must be audited before closure, and remaining assets must be dedicated for use for health
insurance benefits for all individuals currently receiving health benefits. This paragraph does not
apply to joint self-insurance trusts or pools.
(c) The assets or liabilities of a joint self-insurance trust or pool that is dissolved must
be distributed to members of the joint trust or pool in accordance with the joint trust or pool
agreement, if any.
    Subd. 4a. May choose, pay for insurance. A statutory or home rule charter city, county,
school district, or instrumentality of any of these entities with a self-insurance health benefit plan,
may, upon request of the exclusive representative of its employees as certified pursuant to section
179A.12, allow the employees of the exclusive representative to enroll, at their own expense,
in the health insurance benefit plan.
    Subd. 5. Nondisclosure of claims; exception. No political subdivision or its employee or
agent shall disclose any information about individual claims or total claims of an individual
without the consent of the individual, except that the information may be disclosed to officers,
employees, or agents of the political subdivision to the extent necessary to enable them to perform
their duties in administering the health benefit program. This provision shall not prevent the
disclosure of aggregate claims for the group without identification of any individual.
A parent or legal guardian of a minor is authorized to act on behalf of the minor in the
disclosure of a record.
    Subd. 6. Pre-8/1/1980 plans. A statutory or home rule charter city or county or school
district, or instrumentality thereof having a self insured health benefit plan on August 1, 1980,
may continue to operate that plan notwithstanding that the plan does not meet the minimum
employee group size requirement of subdivision 1.
History: 1980 c 528 s 3; 1Sp1981 c 4 art 2 s 44,47; 1982 c 424 s 130; 1983 c 241 s 9-11;
1983 c 289 s 114 subd 1; 1984 c 462 s 27; 1984 c 655 art 1 s 92; 1987 c 384 art 2 s 1; 1993 c
13 art 1 s 41; 1993 c 215 s 1; 1995 c 233 art 2 s 56; 1996 c 446 art 3 s 2; 1997 c 117 s 1; 1998
c 397 art 11 s 3; 2001 c 215 s 40

471.62 STATUTES OR RULES MAY BE ADOPTED BY REFERENCE.
Any city or town, however organized, may incorporate in an ordinance by reference any
statute of Minnesota, any administrative rule of any department of the state of Minnesota affecting
the municipality, or any code. Any such municipality situated wholly or partly within 20 miles of
the limits of a city of the first class may similarly adopt by reference any ordinance of such first
class city or of any contiguous first class city regulating the construction, alteration, improvement,
repair, or maintenance of buildings or the installation of equipment therein. All requirements of
statutes and charters for the publication or posting of ordinances shall be satisfied in such case
if the ordinance incorporating the statute, rule, ordinance or code is published or posted in the
required manner and if, prior to such posting or publication, at least one copy of the ordinance
or code is marked as the official copy and filed for use and examination by the public in the
office of the municipal clerk or recorder. Provisions of the statute, rule, ordinance or code thus
incorporated in such ordinance by reference shall be as much a part of the ordinance as if they had
been set out in full therein. The clerk or recorder of the municipality shall furnish a copy of any
such ordinance thus incorporated by reference at cost to any person upon request. This section
does not authorize any municipality to adopt ordinances on any subject on which it does not have
power by statute or charter to legislate. The term "code" as used herein means any compilation of
regulations or standards or part thereof prepared by any governmental agency, including regional
and county planning agencies or any trade or professional association for general distribution in
printed form as a standard or model on the subject of building construction, plumbing, electric
wiring, inflammable liquids, sanitary provisions, planning, zoning, subdivision, housing, public
health, safety, or welfare.
History: 1945 c 200 s 1; 1957 c 220 s 1; 1967 c 489 s 1; 1969 c 850 s 5; 1971 c 25 s 82;
1973 c 123 art 5 s 7; 1985 c 248 s 70

471.63 PROMOTION OF SAFETY AND PRESERVATION OF HUMAN LIFE.
    Subdivision 1. Authorization. In each county in this state not containing a city of the first
class, and in any county having an excess of 5,000 square miles and a population in excess
of 150,000 containing a city of the first class, the county board or the governing body of any
municipality is hereby authorized and empowered to appropriate to set aside or to make a special
levy to be included in its general revenue fund for the purpose of defraying the cost of necessary
supplies, postage, materials, awards, expenses of safety workers, administration expenses, and
incidentals in the promotion of general safety and the preservation of human life in this state.
    Subd. 2.[Repealed, 1994 c 505 art 3 s 17]
    Subd. 3. Funds, payment to local safety council. Funds so appropriated or allocated may be
paid to any local safety council which is a recognized affiliate of the Minnesota Safety Council.
    Subd. 4. General fund of safety council; payment therefrom. Such funds so appropriated
shall be deposited in a state or national bank same as other public funds in the manner provided
by law by the treasurer of the said local safety council and credited to a fund to be established
and known as the general fund of the said safety council. Any moneys expended from such fund
shall be on verified claims allowed by the safety council, to which such moneys are allocated,
in meeting assembled and all checks signed by the chair and countersigned by the treasurer
or secretary of such safety council.
    Subd. 5. Funds audited; annual report. Such funds and records shall be subject to audit the
same as any other public funds, and the treasurer of the safety council shall, on the first Monday
in January of each year, submit a statement in detail of receipts, expenditures, and balances for the
preceding year to the county, or municipality making such appropriation.
    Subd. 6. Bond of treasurer. The treasurer of the safety council shall be required to give a
corporate surety bond in favor of the county, or municipality making such appropriation in the
amount so appropriated to the safety council by such governing body. The premium for such bond
when approved shall be charged against the general fund of the safety council. The bond shall be
approved by the legal advisor of the governing body as to form, legality, and surety.
    Subd. 7. Appropriation resolution filed with county auditor. A certified copy of the
resolution appropriating such funds by any municipal governing body shall be filed with
the county auditor in which county such appropriation is made, within 30 days after such
appropriation. The county auditor shall keep a record of the total appropriations so made.
History: 1945 c 6 s 1-7; 1949 c 486 s 2; 1969 c 150 s 1; 1973 c 583 s 34; 1986 c 444

471.631 REWARDS FOR INFORMATION ABOUT FELONS.
A home rule charter or statutory city may offer and pay a reward or fund the payment of a
reward offered by a nonprofit organization in an amount it deems appropriate for information
leading to the apprehension and charging or conviction of a person alleged to have committed a
felony within the city's limits.
History: 1993 c 63 s 1

471.633 FIREARMS.
The legislature preempts all authority of a home rule charter or statutory city including a city
of the first class, county, town, municipal corporation, or other governmental subdivision, or any
of their instrumentalities, to regulate firearms, ammunition, or their respective components to the
complete exclusion of any order, ordinance or regulation by them except that:
(a) a governmental subdivision may regulate the discharge of firearms; and
(b) a governmental subdivision may adopt regulations identical to state law.
Local regulation inconsistent with this section is void.
History: 1985 c 144 s 1

471.634 DEFINITION.
For purposes of section 471.633, the terms "municipal corporation" and "governmental
subdivision," or instrumentality thereof, do not include school districts and other entities
composed exclusively of school districts when school boards or school administrators are
regulating school grounds, school facilities, school transportation services, school programs, or
the conduct of students at any activities conducted under the direct or indirect supervision or
control of the school board or administration.
History: 1Sp1985 c 12 art 7 s 24

471.635 ZONING ORDINANCES.
Notwithstanding section 471.633, a governmental subdivision may regulate by reasonable,
nondiscriminatory, and nonarbitrary zoning ordinances, the location of businesses where firearms
are sold by a firearms dealer. For the purposes of this section, a firearms dealer is a person who
is federally licensed to sell firearms and a governmental subdivision is an entity described in
sections 471.633 and 471.634.
History: 1993 c 326 art 1 s 3; 1993 c 366 s 8

471.64 MAY GET, DISPOSE OF PROPERTY TO, FROM U.S., STATE AGENCIES.
    Subdivision 1. Ignore statutes, charter. Any county, city, town, school district, or other
political subdivision of the state may enter into any contract with the United States of America or
with any agency thereof, any state agency, or with any other political subdivision of the state for
the purchase, lease, sale, or other acquisition or disposition of equipment, supplies, materials,
or other property, including real property, without regard to statutory or charter provisions.
The acquisition or disposition of such property from or to the federal government shall be
in accordance with the rules and regulations which may be prescribed by the United States of
America or any agency thereof.
    Subd. 2. Designation, authorization. The governing body of any political subdivision of the
state may designate by appropriate resolution or order any officer or employee of its own to enter
a bid or bids in its behalf at any sale of equipment, supplies, material or other property, including
real property, owned by the United States of America or with any agency thereof, any state agency,
or with any other political subdivision of the state and may authorize the officer or employee to
make any down payment, or payment in full, required in connection with such bidding.
History: 1945 c 167 s 1,2; 1955 c 637 s 1; 1957 c 148 s 1; 1974 c 260 s 8; 1986 c 327 s
4; 1986 c 444

471.65 GRANT, ADVANCE, OR LOAN FROM U.S. OR STATE GOVERNMENT.
    Subdivision 1. Acceptance. Notwithstanding inconsistent provisions of any other statute or
home rule charter, any county, statutory or home rule charter city, town, school district or other
political subdivision of the state, however organized, may accept from the government of the
United States or the state of Minnesota grants, loans, or advances of money for:
(1) energy conservation investments made from funds received under section 216C.37, and
from money received from litigation or settlement of alleged violations of federal petroleum
pricing regulations; and
(2) the planning of public works projects, and may make agreements to repay any such loans
or advances without submitting the proposal to a vote of the people. Funds received by any
political subdivision under this subdivision shall not be used for the planning of public housing
projects or housing authority projects.
    Subd. 2. Charter limitation on expenditures not to apply. Expenditures of grants,
advances, or loans of money received by any city from the government of the United States
or the state of Minnesota for projects under subdivision 1 by such municipality shall not be
considered as part of the cost of government within the meaning of any statutory or charter
limitation on expenditures.
History: 1945 c 316 s 1,2; 1973 c 123 art 5 s 7; 1987 c 289 s 3; 1987 c 312 art 1 s 10 subd 1

471.653 DISTRIBUTION OF CERTAIN FEDERAL PAYMENTS.
Federal payment in lieu of taxes on entitlement lands made pursuant to United States Code,
title 31, sections 6901 to 6906 must be transferred by a county to the home rule or statutory city or
town where the entitlement land is located if the county board determines that the statutory or
home rule city or town is the principal provider of one or more governmental services affecting
the use of entitlement lands and if the total annual federal payment to the county is $5,000 or
more. The county board shall make its determination based on factors which must include: (1)
whether the city or town has at least 60 acres of land within the entitlement lands; (2) whether
city or town roads are the primary access to the entitlement lands; and (3) whether the city or
town provides one or more specific services to the entitlement lands such as fire protection, police
protection, search and rescue services, or land use planning and official controls.
The distribution of federal payment in lieu funds shall be made by the county board to a
qualifying city or town in the proportion that the acreage of entitlement land located in each bears
to the total acreage of entitlement land in the county. If more than 25 percent of entitlement acreage
in a county is located in qualifying cities or towns, there shall be a pro rata reduction in each
qualifying city or town's share, so that only 30 percent of the total county payment is distributed.
History: 1985 c 204 s 3; 1997 c 39 s 1

471.655 MUNICIPALITY'S ECONOMIC OPPORTUNITY PROGRAM POWERS.
With respect to programs funded in whole or in part under the Economic Opportunity Act of
1964, Public Law 88-452, as amended, any city, county, town, or other municipality, any school
district, any special purpose district, or any other public body of this state shall have power to:
(1) Plan, prepare for, and apply for any grant for which it may be eligible under the act, and
to receive and expend the same in accordance with its terms;
(2) Cooperate with any other unit of government or private agency, in connection with any
grant received by such other unit or agency under the act, and to receive and expend funds under
any subcontract with such other unit or agency in accordance with its terms;
(3) Expend such public moneys and gifts as may be or become available to it, to the extent
necessary to provide matching funds or services in connection with such grant or subcontract.
History: 1967 c 374 s 1

471.656 LIMITS ON BOND ISSUANCE FOR EXTRATERRITORIAL PROJECTS.
    Subdivision 1. General rule. Notwithstanding any law to the contrary, neither a municipality
nor an authority may issue obligations to finance the acquisition or improvement of real property
located outside of the corporate boundaries of the issuer.
    Subd. 2. Exemptions. Subdivision 1 does not apply if:
(1) the issuing governmental unit is the owner of the property to be financed; or
(2) for property or two or more properties constituting a single project located in a city, the
governing body of the city consents, by resolution, to issuance of the obligations; or
(3) for property or two or more properties constituting a single project located outside of a
city or in two or more cities or towns, the governing body of the county in which the property is
located consents, by resolution, to issuance of the obligations; or
(4) the obligations are issued under a joint powers agreement, whether issued by a joint
powers board or by one or more of the parties to the joint powers agreement, and the property is
located entirely within the boundaries of one or more of the parties to the joint powers agreement;
or
(5) the issuer is a municipality or municipalities acting under a joint powers agreement and
the financing is for the acquisition or improvement of property, facilities, or rights of use or access
thereto which are necessary or useful in the operation of municipal public utilities; or
(6) the issuer is a municipal power agency established under chapter 453 or a municipal
gas agency established under chapter 453A.
    Subd. 3. Definitions. (a) The definitions in section 475.51 apply to this section and the
following terms have the meanings given in this subdivision.
(b) "Authority" means, whether created under general or special law:
(1) a housing and redevelopment authority;
(2) an economic development authority;
(3) a port authority;
(4) a rural development financing authority; or
(5) other similar local government entities that are authorized by law to issue obligations.
(c) "Municipal public utilities" means the provision by a municipality of electricity, natural
gas, water, wastewater removal and treatment, telecommunications, district heating, or cable
television and related services.
(d) "Owner of the property" means the entity or entities that are the fee or equitable owners
and that are economically at risk with regard to the property.
(e) "Real property" includes an easement and improvements made to a leasehold of real
property.
History: 2002 c 390 s 14

471.66 VACATIONS.
    Subdivision 1. With or without pay. The governing body of each city and town in the state
of Minnesota, however organized, may by resolution or ordinance provide for the granting of
vacations, with or without pay, to all its regularly employed employees or officers, upon such
terms and under such conditions as said governing body may determine, and subject to such
requirements as to length of service with such municipality as said governing body may require.
    Subd. 2. No retroactivity. Nothing in subdivision 1 shall be construed as retroactive in its
purpose or intent so as to give the governing body of any such city or town the right to grant
vacations based on service of its employees or officers rendered prior to the enactment of such
ordinance or resolution.
    Subd. 3. Elected officials. No elected official of a statutory or home rule charter city,
county, town, school district, metropolitan or regional agency, or other political subdivision
of this state, may receive monetary compensation for unused vacation or sick leave accruals.
Nothing in this subdivision shall restrict an elected official from taking vacation or sick leave
time that may be provided for by resolution or ordinance of the governing body of a statutory or
home rule charter city, county, town, school district, metropolitan or regional agency, or other
political subdivision of this state.
History: 1945 c 504 s 1,2; 1973 c 123 art 5 s 7; 1992 c 592 s 10

471.661 OUT-OF-STATE TRAVEL.
By January 1, 2006, the governing body of each statutory or home rule charter city, county,
school district, regional agency, or other political subdivision, except a town, must develop a
policy that controls travel outside the state of Minnesota for the applicable elected officials of the
relevant unit of government. The policy must be approved by a recorded vote and specify:
(1) when travel outside the state is appropriate;
(2) applicable expense limits; and
(3) procedures for approval of the travel.
The policy must be made available for public inspection upon request and reviewed annually.
Subsequent changes to the policy must be approved by a recorded vote.
History: 2005 c 156 art 2 s 38

471.665 MILEAGE ALLOWANCES.
    Subdivision 1. Governing body sets. The maximum amount which shall be paid by any
county, home rule charter or statutory city, town, or school district, to any officer or employee
as compensation or reimbursement for the use by the officer or employee of the officer's or
employee's own automobile in the performance of duties shall be set by the town board or other
governing body of the unit in an amount to be determined by the governing body.
    Subd. 2. Base allowance, St. Paul, Hennepin County. Except as provided in subdivision 3,
the governing body of the city of St. Paul may determine to pay, and in counties having more than
550,000 inhabitants, the county board may determine that the county shall pay a base allowance
of $1.50 per day for each day the employee or officer's automobile is officially used. This base
allowance shall not be paid for more than 20 days in each month. The minimum base allowance
shall be $20 per month for each employee or officer required to have a personal automobile
available for official public business and using that automobile for such business periodically
throughout the month. If a base allowance is paid it shall be in addition to a mileage allowance
which shall not exceed 7-1/2 cents a mile for the first 500 miles in any one month and five cents a
mile thereafter.
    Subd. 3. Monthly or periodic allowance. In lieu of the mileage allowance provided in
subdivision 1, the governing body or town board of any city, county, town, or school district may
pay any officer or employee thereof as compensation or reimbursement for the use by the officer
or employee of a personal automobile in the performance of official duties a monthly or periodic
allowance; but no allowance in lieu of mileage shall be paid to the members of the governing
body or town board except as otherwise provided by special law or home rule charter.
History: (254-47,254-48) 1931 c 331 s 1,2; 1933 c 13 s 1; 1935 c 225 s 1; 1949 c 681 s 1;
1951 c 641 s 1; 1953 c 159 s 1; 1955 c 796 s 1; 1957 c 904 s 1; 1965 c 510 s 1; 1967 c 851 s 1;
Ex1971 c 3 s 76 subds 1,4; Ex1971 c 48 s 22; 1973 c 123 art 5 s 7; 1973 c 661 s 1,2; 1975 c 431 s
20; 1978 c 743 s 10; 1979 c 329 s 2; 1980 c 607 art 19 s 11,12; 1986 c 444

471.666 PERSONAL USE OF PUBLICLY OWNED AUTOMOBILES PROHIBITED.
    Subdivision 1. Definitions. For purposes of this section, the following definitions shall apply:
(a) "Local government vehicle" means a vehicle owned or leased by a political subdivision
of the state of Minnesota or loaned to a political subdivision.
(b) "Political subdivision" means a statutory or home rule charter city, county, town, school
district, metropolitan or regional agency, or other special purpose district of this state.
(c) "Local government employee" or "employee" means an individual who is appointed or
employed by a political subdivision, including all elected officials of political subdivisions.
    Subd. 2. Restricted uses. A local government vehicle may be used only for authorized local
government business, including personal use that is clearly incidental to the use of the vehicle for
local government business. A local government vehicle may not be used for transportation to or
from the residence of a local government employee, except as provided in subdivision 3.
    Subd. 3. Permitted uses. A local government vehicle may be used by a local government
employee to travel to or from the employee's residence:
(1) in connection with work-related activities during hours when the employee is not
working;
(2) if the employee has been assigned the use of a local government vehicle for authorized
local government business on an extended basis, and the employee's primary place of work is not
the local government work station to which the employee is permanently assigned; or
(3) if the employee has been assigned the use of a local government vehicle for authorized
local government business away from the work station to which the employee is permanently
assigned, and the number of miles traveled, or the time needed to conduct the business, will be
minimized if the employee uses a local government vehicle to travel to the employee's residence
before or after traveling to the place of local government business.
    Subd. 4. Exceptions. This section does not apply to public safety vehicles that are owned
or leased by a political subdivision.
History: 1993 c 315 s 16

471.67 AGREEMENT BETWEEN COMMISSIONER OF DNR AND MUNICIPALITY.
    Subdivision 1. Terms and conditions. The commissioner of natural resources and any city,
however organized, by its governing body or duly authorized park board or park commission,
may make an agreement under such terms and conditions as they deem advisable for the
management, maintenance and improvement by such municipality of any lands lying wholly
within its boundaries which were acquired by the state for park purposes by gift, purchase or
condemnation not inconsistent with the terms and conditions or restrictions under which such
lands were acquired.
    Subd. 2. Municipality to maintain. Such municipality may appropriate and expend moneys
from its general revenue or other fund available for the purposes authorized by this section.
History: 1947 c 555 s 1,2; 1969 c 1129 art 10 s 2; 1973 c 123 art 5 s 7

471.68 DISTRIBUTION OF PUBLICATIONS BY ANY COUNTY OR CITY.
    Subdivision 1. Annual or biennial reports. When any county or city, or any department,
agency, or official thereof issues for public distribution an annual or biennial report, copies thereof
shall upon request be delivered immediately as follows:
One copy to each public library serving such local area of government for which said report
is made; provided that in counties containing no county library, such report shall be delivered to
the public library serving the most populous city in the county;
One copy to the Minnesota Historical Society;
One copy to the general library of the University of Minnesota.
Additional copies may be delivered upon request.
    Subd. 2. Appearing in newspaper. The publications enumerated in subdivision 1 shall not
include publications appearing in newspapers.
    Subd. 3. [Repealed, 2005 c 156 art 2 s 52]
History: 1949 c 438 s 1,2; 1973 c 123 art 5 s 7; 1992 c 592 s 11

471.685 LIMIT ON POSTSECONDARY INSTITUTION FEES.
A statutory or home rule charter city, county, or town may not impose a fee, assessment, or
similar charge:
(1) on a person, based on the person's status as a student enrolled in a postsecondary
educational institution; or
(2) on a postsecondary educational institution, based on the number of students attending the
postsecondary institution.
History: 2006 c 185 s 1

471.69 LIMITATION OF TAX LEVIES; STATEMENT.
No school district, county, statutory city, or town shall contract any debt or issue any warrant
or order in any calendar year in anticipation of the collection of taxes levied or to be levied for
that year in excess of the average amount actually received in tax collections on the levy for the
three previous calendar years plus ten percent thereof, and an average of other income excluding
gifts received by the school district for the past three years. This section shall not apply to any
school district, county, statutory city, or town, wherein the mineral net tax capacity, exceeds 25
percent of the net tax capacity of real property in such taxing district. This section shall not apply
to any school district in a city of the first class which constitutes one single school district.
As soon as practicable after the beginning of each calendar year, the clerk or other recording
officer of any municipality described in this section shall present to the governing body of the
municipality a statement of tax collections and other income excluding gifts credited to each fund
of the municipality during each of the three previous fiscal years and the yearly average thereof.
The auditor of the county shall be required to furnish information as appears in the office records
to the clerk upon request.
History: (1938-21, 1938-22) 1931 c 159 s 1,2; 1937 c 180 s 1; 1949 c 457 s 1; 1973 c 123
art 5 s 7; 1976 c 44 s 69; 1986 c 444; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20

471.695 CITY DEFINED FOR SECTIONS 471.695 TO 471.699.
For the purposes of sections 471.695 to 471.699, "city" means a statutory city or home
rule charter city.
History: 1978 c 787 s 1

471.696 FISCAL YEAR; DESIGNATION.
Beginning in 1979, the fiscal year of a city and all of its funds shall be the calendar year,
except that a city may, by resolution, provide that the fiscal year for city-owned nursing homes be
the reporting year designated by the commissioner of human services. Beginning in 1994, the
fiscal year of a town and all of its funds shall be the calendar year.
History: 1978 c 787 s 2; 1984 c 528 s 7; 1984 c 654 art 5 s 58; 1992 c 592 s 12; 1Sp2003
c 1 art 2 s 111

471.6965 PUBLICATION OF SUMMARY BUDGET STATEMENT.
Annually, upon adoption of the city budget, the city council shall publish a summary budget
statement in either of the following:
(1) the official newspaper of the city, or if there is none, in a qualified newspaper of general
circulation in the city; or
(2) a city newsletter or other city mailing sent to all households in the city.
If the summary budget statement is published in a city newsletter, it must be the lead story. If
the summary budget statement is published through a city newsletter or other city mailing, a copy
of the newsletter or mailing shall be sent on request to any nonresident. If the summary budget
statement is published by a mailing to households other than a newsletter, the color of the paper
on which the summary budget statement is printed must be distinctively different than the paper
containing other printed material included in the mailing.
If the budget statement is mailed to households, the city may also include a notice notifying
taxpayers when the city will begin its budget process for the current year and encouraging
taxpayers to attend the hearings. A telephone number where taxpayers can check on the dates and
times of those future hearings should be included.
The statement shall contain information relating to anticipated revenues and expenditures, in
a form prescribed by the state auditor. The form prescribed shall be designed so that comparisons
can be made between the current year and the budget year. A note shall be included that the
complete budget is available for public inspection at a designated location within the city.
History: 1984 c 543 s 63; 1995 c 134 s 2; 1996 c 471 art 3 s 40

471.697 FINANCIAL REPORTS; FILING; CITIES, TOWNS OF 2,500.
    Subdivision 1. All operations except some hospitals, nursing homes. In any city with a
population of more than 2,500 according to the latest federal census, or town with a population of
more than 2,500 according to the latest federal census with an annual revenue of (1) $670,500 or
more in 2004, or (2) $670,500 adjusted for inflation using the annual implicit price deflator for
state and local expenditures as published by the United States Department of Commerce in 2005
and after, the city clerk, chief financial officer, town clerk, or town clerk-treasurer shall:
(a) Prepare a financial report covering the city's or town's operations including operations
of municipal hospitals and nursing homes, liquor stores, and public utility commissions during
the preceding fiscal year after the close of the fiscal year. Cities shall publish the report or a
summary of the report, in a form as prescribed by the state auditor, in a qualified newspaper
of general circulation in the city or, if there is none, post copies in three of the most public
places in the city, no later than 30 days after the report is due in the office of the state auditor.
The report shall contain financial statements and disclosures which present the city's or town's
financial position and the results of city or town operations in conformity with generally accepted
accounting principles. The report shall include such information and be in such form as may
be prescribed by the state auditor;
(b) File the financial report in the clerk's or financial officer's office for public inspection
and present it to the city council or town board after the close of the fiscal year. One copy of the
financial report shall be furnished to the state auditor after the close of the fiscal year; and
(c) Submit to the state auditor audited financial statements which have been attested to by a
certified public accountant, public accountant, or the state auditor within 180 days after the
close of the fiscal year, except that the state auditor may upon request of a city or town and a
showing of inability to conform, extend the deadline. The state auditor may accept this report
in lieu of the report required in clause (b). A copy of the audited financial statement along with
any management letter or other written findings or comments by the auditor must be provided to
each city council member and the mayor, or to each town board member, no later than 30 days
after the report is required to be submitted to the state auditor and presented at a scheduled
meeting of the city council or town board prior to October 31 of the year in which the report is
submitted to the state auditor.
A municipal hospital or nursing home established before June 6, 1979, whose fiscal year is
not a calendar year on August 1, 1980, is not subject to this subdivision but shall submit to the
state auditor a detailed statement of its financial affairs audited by a certified public accountant, a
public accountant or the state auditor no later than 120 days after the close of its fiscal year. It may
also submit a summary financial report for the calendar year.
    Subd. 2. First class city audits. The state auditor shall continue to audit cities of the first
class pursuant to section 6.49.
History: 1978 c 787 s 3; 1979 c 330 s 4; 1980 c 487 s 18; 1980 c 502 s 1; 1984 c 543 s 64;
1986 c 444; 1992 c 592 s 13; 1998 c 276 s 1; 2004 c 161 s 1

471.698 FINANCE REPORT, FILE, PUBLISH OR POST; CITIES UNDER 2,500.
    Subdivision 1. All operations except some hospitals, nursing homes. In any city with
a population of less than 2,500 according to the latest federal census, the city clerk or chief
financial officer shall:
(a) Prepare a detailed statement of the financial affairs of the city including operations of
municipal hospitals and nursing homes, liquor stores, and public utility commissions in the style
and form prescribed by the state auditor, for the preceding fiscal year showing all money received,
with the sources, and respective amounts thereof; all disbursements for which orders have been
drawn upon the treasurer; the amount of outstanding and unpaid orders; all accounts payable;
all indebtedness; contingent liabilities; all accounts receivable; the amount of money remaining
in the treasury; and all items necessary to show accurately the revenues and expenditures and
financial position of the city;
(b) File the statement in the clerk's or financial officer's office for the public inspection and
present it to the city council within 45 days after the close of the fiscal year;
(c)(1) Publish the statement, or a summary of the statement in a form as prescribed by the
state auditor, within 90 days after the close of the fiscal year in a qualified newspaper of general
circulation in the city; or
(2) If there is no qualified newspaper of general circulation in the city, the clerk shall,
at the direction of the city council, post copies in three of the most public places in the city.
It is not necessary to publish individual disbursements of less than $300, if disbursements
aggregating $1,000 or more to any person, firm, or other entity are set forth in a schedule of major
disbursements showing amounts paid out, to whom, and for what purpose, and are made a part of
and published with the financial statement; and
(d) Submit within 90 days after the close of the fiscal year a copy of the statement to the state
auditor in such summary form as the state auditor may prescribe.
A municipal hospital or nursing home established before June 6, 1979, whose fiscal year is
not a calendar year on August 1, 1980, is not subject to this subdivision but shall submit to the
state auditor a detailed statement of its financial affairs audited by a certified public accountant, a
public accountant or the state auditor no later than 120 days after the close of its fiscal year. It may
also submit a summary financial report for the calendar year.
    Subd. 2. May comply with section 471.697. Any city described in subdivision 1 may
comply with the provisions of section 471.697, in which case the provisions of subdivision 1
shall not apply to the city.
History: 1978 c 787 s 4; 1979 c 330 s 5; 1980 c 487 s 19; 1980 c 502 s 2; 1984 c 543
s 65; 1986 c 444; 2004 c 182 s 31

471.6985 MUNICIPAL LIQUOR STORE.
    Subdivision 1. Publish balance sheet, operations. Any city operating a municipal liquor
store shall publish a balance sheet using generally accepted accounting procedures and a statement
of operations of the liquor store within 90 days after the close of the fiscal year in the official
newspaper of the city. The statement shall be headlined, in a type size no smaller than 18-point:
"Analysis of ......(city)...... municipal liquor store operations for ......(year)...." and shall be written
in clear and easily understandable language. It shall contain the following information: total
sales, cost of sales, gross profit, profit as percent of sales, operating expenses, operating income,
contributions to and from other funds, capital outlay, interest paid and debt retired. The form and
style of the statement shall be prescribed by the state auditor. Nonoperating expenses may not be
extracted on the reporting form prior to determination of net profits for reporting purposes only.
Administrative expenses charged to the liquor store by the city must be actual operating expenses
and not used for any other public purpose prior to the determination of net profits. The publication
requirements of this section shall be in addition to any publication or posting requirements for
financial reports contained in sections 471.697 and 471.698. The statement may at the option of
the city council be incorporated into the reports published pursuant to sections 471.697 and
471.698, in accordance with a form and style prescribed by the state auditor.
    Subd. 2. If $350,000 sales, audited statement. Any city operating a municipal liquor store
with total annual sales in excess of $350,000 shall submit to the state auditor audited financial
statements for the liquor store that have been attested to by a certified public accountant, public
accountant, or the state auditor within 180 days after the close of the fiscal year, except that the
state auditor may extend the deadline upon request of a city and a showing of inability to conform.
The state auditor may accept this report in lieu of the report required by subdivision 1.
History: 1981 c 331 s 3; 1984 c 543 s 66; 1992 c 592 s 14

471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
Failure of a city to timely file a statement or report under section 471.697 or 471.698 shall,
in addition to any other penalties provided by law, authorize the state auditor to send full-time
personnel to the city or to contract with private persons, firms, or corporations pursuant to section
6.58, in order to complete and file the financial statement or report. The expenses related to the
completion and filing of the financial statement or report shall be charged to the city. Upon failure
by the city to pay the charge within 30 days of billing, the state auditor shall so certify to the
commissioner of finance who shall forward the amount certified to the general fund and deduct
the amount from any state funds due to the city under any shared taxes or aids. The state auditor's
annual report on cities shall include a listing of all cities failing to file a statement or report.
History: 1978 c 787 s 5; 1989 c 335 art 4 s 89

471.6995 EXTENDED TIME TO FILE FINANCIAL REPORT; DISASTER AREAS.
The time limit by which financial reports are required to be filed under section 471.697
or 471.698, is extended by 90 days for any city or town located in whole or in part within a
presidentially declared disaster area, if the time period for which the area is so designated includes
at least one of the 30 days immediately preceding the time limit.
History: 1Sp2001 c 5 art 20 s 17

471.70 ANNUAL REPORT OF OUTSTANDING OBLIGATIONS.
For the purposes of this section "municipality" means a city, however organized; a school
district, however organized; a town; or any other body corporate and politic created under
Minnesota law.
An "obligation" as used in this section means an obligation as defined in chapter 475.
On or before February first each year, it shall be the duty of the principal accounting officer
of each municipality to report to the auditor of each county in which such municipality is situate,
the total amount of outstanding obligations, and the purpose for which issued as of December
31 of the preceding year. Such report shall be kept by the auditor of each county in a suitable
record. On March first each year, it shall be the duty of the auditor of each county to make
report to the state auditor of such obligations as reported to the county auditor by the principal
accounting officer of the municipality, together with the amount and character of all outstanding
obligations issued by the county.
History: (1938-14, 1938-15) 1927 c 163 s 1,2; 1945 c 187 s 1; 1967 c 48 s 1; 1973 c 123 art
5 s 7; 1973 c 492 s 7; 1986 c 444

471.701 SALARY DATA.
A city or county with a population of more than 15,000 must annually notify its residents of
the positions and base salaries of its three highest-paid employees. This notice may be provided
on the home page of the primary Web site maintained by the political subdivision for a period of
not less than 90 consecutive days, in a publication of the political subdivision that is distributed
to all residents in the political subdivision, or as part of the annual notice of proposed property
taxes prepared under section 275.065.
History: 2005 c 156 art 2 s 39

471.705    Subdivision 1.[Renumbered 13D.01, subds 1,2,4,5; 13D.02]
    Subd. 1a.[Renumbered 13D.03]
    Subd. 1b.[Renumbered 13D.01, subd 6]
    Subd. 1c.[Renumbered 13D.04]
    Subd. 1d.[Renumbered 13D.05]
    Subd. 1e.[Renumbered 13D.01, subd 3]
    Subd. 2.[Renumbered 13D.06]
    Subd. 3.[Renumbered 13D.07]

471.707 LICENSE FEES; NOTICE.
A home rule charter or statutory city or a town may increase the fee for a license to own
or operate a vending machine or to dispense goods or services therefrom only after notice and
hearing on the matter. Mailed notice of the proposed change shall be sent to the persons already
licensed at least 30 days before the hearing. This section supersedes any inconsistent provision of
other law or charter.
History: 1984 c 393 s 1

471.71 DEFINITIONS.
    Subdivision 1. Terms. For the purposes of sections 471.71 to 471.83 the terms defined in this
section shall have the meanings ascribed to them unless the context otherwise requires.
    Subd. 2. Municipality. "Municipality" includes cities, towns, and school districts.
    Subd. 3. City, town, school district. "City," "town," or "school district" include only those
of the class made subject to sections 471.71 to 471.83 by sections 471.72 and 471.73.
    Subd. 4. Unfunded indebtedness. "Unfunded indebtedness" includes all general obligations
and indebtedness except bonds and except indebtedness which is payable from special
assessments against benefited property.
    Subd. 5. Year. "Year" means calendar year, except that it means "fiscal year" in the case of
any school district or city as to which both of the following conditions exist:
(1) in the case of a city, the charter or law under which it is organized provides for a fiscal
year differing from the calendar year; in the case of a school district, the books of account are kept
on the basis of a fiscal year differing from the calendar year;
(2) the governing body of such city or school district shall have adopted a resolution
determining that its operation under sections 471.71 to 471.83 shall be on the basis of such fiscal
year and giving the date of the beginning of that year.
History: 1943 c 526 s 1 subd (a); 1951 c 63 s 1; 1973 c 123 art 5 s 7

471.72 APPLICATION; PURPOSE.
Sections 471.71 to 471.83 apply to all cities, statutory cities, towns, and school districts in
which more than 50 percent of the net tax capacity of taxable real and personal property, excluding
money and credits, consists of unmined iron ore. Their purpose is to secure sound fiscal policies
in, and remedy the financial condition of, municipalities, a large proportion of the property of
which consists of a diminishing natural resource in which the state has a substantial interest.
History: 1943 c 526 s 1 subd (c); 1951 c 63 s 2; 1973 c 123 art 5 s 7; 1988 c 719 art 5 s
84; 1989 c 329 art 13 s 20

471.73 ACCEPTANCE OF PROVISIONS.
In the case of any city within the class specified in 471.72 having a market value, as defined
in section 471.72, in excess of $37,000,000; and in the case of any statutory city within such class
having a market value, as defined in section 471.72, of less than $5,000,000; and in the case of
any statutory city within such class which is governed by Laws 1933, chapter 211, or Laws
1937, chapter 356; and in the case of any statutory city within such class which is governed by
Laws 1929, chapter 208, and has a market value of less than $83,000,000; and in the case of any
school district within such class having a market value, as defined in section 471.72, of more than
$54,000,000; and in the case of all towns within said class; sections 471.71 to 471.83 apply only
if the governing body of the city or statutory city, the board of the school district, or the town
board of the town shall have adopted a resolution determining to issue bonds under the provisions
of sections 471.71 to 471.83 or to go upon a cash basis in accordance with the provisions thereof.
History: 1943 c 526 s 1 subd (b); 1951 c 63 s 3; 1973 c 123 art 5 s 7; 1988 c 719 art 5 s 84;
1989 c 329 art 13 s 20; 1990 c 480 art 9 s 21

471.74 [Repealed, 1996 c 310 s 1]

471.741 [Repealed, 1975 c 162 s 42]

471.75 ORDERS, SUFFICIENT FUNDS; CERTIFICATES OF INDEBTEDNESS.
    Subdivision 1. No NSF warrants. From and after January 1, 1944, (or in the case of
municipalities referred to in section 471.73, from and after January 1 of the year following the
adoption of the resolution referred to in section 471.73) no municipality subject to sections
471.71 to 471.83 shall draw or issue any order or warrant on any fund (except as authorized
by subdivision 6) until there is sufficient money in the fund to pay the same, together with all
warrants and orders previously issued against the fund.
    Subd. 2. Debt beyond limit is personal. Whenever, from and after the date provided
by subdivision 1, the expenses and obligations incurred chargeable to any particular fund of
a municipality subject to sections 471.71 to 471.83 in any year are sufficient to absorb such
available cash as may remain in the fund from prior years or may have been received from
other sources, plus (in the case of school districts) such amounts as have been certified by the
state Department of Education as due for state aids of any kind, or income tax distributions for
said district for such year, plus the percentage of the entire amount of the tax levy for such fund
payable in that year indicated in subdivision 3, neither the governing body nor any officer, board,
or employee of such taxing district shall have power, and no power shall exist, to create any
additional indebtedness (save as the remainder of such tax levy is collected or available money is
received from other sources) which shall be a charge against that particular fund or shall be in any
manner a valid claim against such municipality; but such additional indebtedness attempted to
be created shall be a personal claim against the officer or member of the governing body voting
for or attempting to create the same. Whenever the county auditor shall have certified to the
municipality the portion of the remainder of the tax levy which has been collected by the county
treasurer, such portion shall be deemed to have been collected within the meaning of this section.
    Subd. 3. Relation to delinquency percentage. The percentage of the entire amount of the
tax levy which may be expended or against which obligations may be incurred under subdivision
2 shall be 95 percent in the case of any municipality in which the average tax delinquency in
the three preceding years shall not exceed 5 percent, and shall be 90 percent in the case of any
municipality in which the average tax delinquency in the three preceding years shall exceed
five but shall not exceed ten percent, and shall be 85 percent in the case of any municipality
in which the average tax delinquency in the three preceding years shall exceed ten percent.
Taxes involved in litigation as to the amount thereof shall not be considered delinquent within
the meaning of this section.
    Subd. 4. Certificates of indebtedness. At any time after the first day of the year following
the making of an annual tax levy, the governing body of any municipality may, for the purpose
of meeting the obligations of the current year, by resolution, with or without advertisement for
bids, issue and sell as many certificates of indebtedness as may be needed in anticipation of the
collection of taxes so levied for any fund named in the tax levy, for the purpose of raising money
for such fund. All certificates of indebtedness issued under the provisions of sections 471.71 to
471.83 shall be negotiable and shall be payable to the order of the payee and shall have a definite
due date, but may be made payable on or before such date. No certificate shall be issued to
become due and payable later than the last day of the year of issuance. Such certificates shall
not be sold for less than par and accrued interest and shall not bear a greater rate of interest
than six percent per annum, which interest shall be payable at maturity or at such earlier times
as the governing body may determine. Each certificate shall state upon its face for which funds
the proceeds of the certificate shall be used, the total amount of the certificates so issued against
such fund, and the total amount embraced in said tax levy for that fund. They shall be numbered
consecutively and be in denominations of $25 or any multiple thereof and shall otherwise be in
such form and be made payable at such place as will best aid in their negotiation.
    Subd. 5. Percent limits. The total amount of certificates of indebtedness issued against any
fund for any year, with interest thereon to maturity, shall not exceed in any municipality that
percent of the tax levy for the fund for such year which is prescribed by subdivisions 2 and 3
as the maximum percentage of the tax levy against which obligations may be incurred in the
municipality, and the aggregate of outstanding certificates against any fund at no time shall
exceed the uncollected portion of such percentage of the tax levy for the fund, and prior to the
beginning of the seventh month of the year shall not exceed 50 percent of the uncollected portion
of such percentage of the levy. Any such municipality may renew any outstanding certificates
of indebtedness from any prior year or issue new certificates, notwithstanding the fact that prior
certificates may be unpaid, whenever inability to pay such outstanding prior certificates is due
solely to failure to collect sufficient moneys upon the tax levy against which they were issued
to discharge such certificates; in the event such certificates are renewed, the municipality may
pay accrued interest thereon at the time of renewal. Except as authorized in this subdivision, no
certificate for any year shall be issued until all certificates for prior years have been paid, nor shall
any certificate be extended.
    Subd. 6. Unsold certificates held by treasurer. If any such municipality is unable to sell
certificates of indebtedness in the manner prescribed hereby, it may issue such certificates, within
the limitations herein provided, to the treasurer of the municipality, or the treasurer's order, and
deposit the same with the treasurer. Certificates so issued shall be held by the treasurer until they
may be sold and shall bear interest at not to exceed six percent per annum. The municipality may
thereupon, as long as such certificates are on deposit with the treasurer, issue warrants on funds
against which such certificates were issued, the principal amount of such warrants not to exceed
the total principal amount of the certificates so held by the treasurer. Such warrants shall bear
interest at the rate specified by the governing body but not to exceed six percent per annum
from and after the day they are presented to the treasurer and stamped "Not paid for want of
funds, but protected by certificates of indebtedness now held by me." Such certificates may be
sold by the governing body of the municipality for not less than par and accrued interest, and
the proceeds of such sale shall be used to take up such warrants in the order of which they were
presented to the treasurer, registered by the treasurer, and stamped as aforesaid. Interest upon such
warrants shall stop upon the date they are called by the treasurer for payment. Such certificates of
indebtedness so held by the treasurer shall be paid at the same time and the same manner as if they
had been issued to a purchaser thereof. All warrants attempted to be issued and all obligations
of indebtedness attempted to be incurred under authority of this subdivision in excess of the
principal amount of the certificates of indebtedness so held by such treasurer shall be void.
    Subd. 7. Full, faith and credit. The proceeds of the taxes assessed as aforesaid on account
of said fund and the faith and credit of the municipality shall be irrevocably pledged for the
redemption of the certificates issued hereunder in the order of issuance against each respective
fund.
    Subd. 8. Cash basis. From and after the date specified in subdivision 1, any such
municipality shall be deemed for all purposes to be on a cash basis. All taxes shall be levied as
now provided by law, but shall be considered as tax revenues for the year in which such taxes are
payable. Any balance remaining in any fund at the end of any such year may be used in later years
in addition to the taxes levied for such year or years.
    Subd. 9. Department, fund spending limits. During the first month of each year the
governing body of each municipality subject to this section, on the basis of the tax levy made,
with allowance for probable delinquencies, if any, and on the basis of probable receipts from other
sources, shall determine the moneys which will be available for each fund and department during
each quarter of the ensuing year, and, by resolution, shall fix the maximum amount of money
which shall be expended by each department and from each fund in each quarter of said year.
When it appears that money budgeted for any fund is not needed therefor, the governing body, by
resolution, may transfer the excess to any other fund unless such transfer is prohibited by any
law governing such municipality. If under the law the governing body has no control over the
expenditures of a particular department or board, such resolution shall, as to such department or
board, set forth the amount of tax moneys or other funds, if any, which will be made available
for such department or board by action of the governing body.
History: 1943 c 526 s 3; 1951 c 63 s 5; 1986 c 444; 1Sp1995 c 3 art 16 s 13; 2003 c 130 s 12

471.76 EXPENDITURES, OBLIGATIONS; CLERK'S STATEMENT.
The clerk or recording officer of each municipality subject to sections 471.71 to 471.83 shall
prepare and present to the governing body, at its first meeting in each month, a statement showing
expenditures made and estimated obligations or indebtedness incurred for the preceding month
and for the preceding portion of the year; the amount allotted by the resolution referred to in
section 471.75, for such month and quarter and the preceding quarters of the year; the amount
allotted by such resolution and the probable expenditures for the remaining quarters of the year.
If at any time it appears from such statement or from other evidence that the municipality is
incurring obligations at a rate or upon a scale which would make it probable, if such rate or scale
of expenditures be continued, that the total attempted expenditures for that year would exceed
the available revenues, after allowance for probable tax delinquencies, the district court, in an
action by any taxpayer, may enjoin expenditures during the remainder of the year in excess of
probable available revenues.
History: 1943 c 526 s 4; 1951 c 63 s 6

471.77 INDEBTEDNESS CONTRACTED IN EXCESS OF REVENUE.
Whenever any department, board, or commission of such municipality has power under the
law to expend money, such department, board, or commission shall not contract any indebtedness
or incur any obligations which, when added to other indebtedness, obligations, or liabilities,
previously incurred during the year, would be in excess of the sum that may be allotted to the
department, board, or commission for that year by the governing body of the municipality, plus
available actual receipts from such other sources as are under its control.
History: 1943 c 526 s 5; 1951 c 63 s 7

471.78 INDEBTEDNESS IN EXCESS OF REVENUE, CONTRACTS VOID.
Each contract attempted to be entered into or indebtedness or pecuniary liability attempted to
be incurred in violation of the provisions of sections 471.71 to 471.83 shall be null and void in
regard to any obligation thereby sought to be imposed upon the municipality or any department
thereof, and no claim therefor shall be allowed by the governing body or any officer, board, or
commission; nor shall the clerk or any other officer issue or execute, nor shall the treasurer or other
disbursing officer thereof pay, any check, warrant, or certificate of indebtedness issued on account
thereof. Each member of the governing body, board, or commission, and each other officer of the
municipality participating in or authorizing any violation of sections 471.71 to 471.83 shall be
individually liable to the municipality for any damage that is caused thereby, and shall be liable to
any person furnishing any labor, services, or materials on any contract entered into or obligations
assumed in violation thereof. Each member of the governing body or of a board or commission
who is present at any meeting thereof when any action is taken with reference to paying money or
incurring indebtedness or entering into any contract in violation of the provisions of this section
shall be deemed to have participated in and to have authorized the same unless the member shall
have caused the member's dissent therefrom to be entered upon the minutes of the meeting.
History: 1943 c 526 s 6; 1951 c 63 s 8; 1986 c 444

471.79 ENFORCEMENT.
The district court may, at the suit of any taxpayer, enforce the performance by any governing
body, board, commission, officer, or agent of any municipality of any action which it is directed to
perform by sections 471.71 to 471.83, to the full extent necessary to carry out the purpose thereof.
History: 1943 c 526 s 7; 1951 c 63 s 9; 1986 c 444

471.80 APPLICATION.
Sections 471.71 to 471.83 shall supersede inconsistent home rule charter provisions, but
shall not supersede or repeal home rule charter provisions not inconsistent therewith which
impose other and additional restrictions on the incurring of obligations or expenditures of moneys.
History: 1943 c 526 s 8; 1951 c 63 s 10

471.81 CONSTRUCTION.
Nothing in sections 471.71 to 471.83 shall be construed as restricting the power of a
municipality to issue bonds for any purpose when authorized by any other law.
History: 1943 c 526 s 9; 1951 c 63 s 11

471.82 REPEALER, EXCEPTIONS.
Laws 1929, chapter 303; Laws 1931, chapter 342; Laws 1933, chapters 210, 275, and 415;
and Laws 1935, chapter 261, are hereby repealed, except that the provisions thereof regulating the
making and allocating of levies for the payment of bonds issued thereunder and interest thereon,
and any other provisions relating to tax levies, shall remain in force.
History: 1943 c 526 s 10; 1951 c 63 s 12

471.83 SEVERABLE, EFFECT.
The provisions of sections 471.71 to 471.83 are severable, and the unconstitutionality of
any provision or the unconstitutionality of these sections as applied to any municipality shall not
invalidate other provisions or prevent the application of these sections to other municipalities;
provided, that if for any reason these sections be held to be inapplicable to any municipality
which is now governed by any of the laws specifically repealed by section 471.82, such law
shall not be repealed as to such municipality.
History: 1943 c 526 s 11; 1951 c 63 s 13

471.831 MUNICIPALITY MAY FILE BANKRUPTCY PETITION.
    Subdivision 1. Any relief under bankruptcy code. A municipality, as defined in subdivision
2, may file a petition and seek any relief available to it under United States Code, title 11, as
amended through December 31, 1996.
    Subd. 2. Municipality defined. In this section, "municipality" means a municipality as
defined in United States Code, title 11, section 101, as amended through December 31, 1996, but
limited to a county, statutory or home rule charter city, or town; or a housing and redevelopment
authority, economic development authority, or rural development financing authority established
under chapter 469, a home rule charter, or special law.
History: 1997 c 148 s 1

471.84 CEMETERIES; APPROPRIATION BY CERTAIN SUBDIVISIONS.
The governing body of any city of the fourth class or statutory city or town may, in its
discretion, appropriate a sum not to exceed $2,500 per annum to any public or privately owned
cemetery located within or without its boundaries if the cemetery is used for the burial of the dead
of any city of the fourth class or statutory city or town without restriction.
History: 1951 c 121 s 1; 1953 c 281 s 1; 1957 c 452 s 1; 1973 c 123 art 5 s 7

471.85 PROPERTY TRANSFER; PUBLIC CORPORATIONS.
Any county, city, town, or school district may transfer its personal property for a nominal
or without consideration to another public corporation for public use when duly authorized by
its governing body.
History: 1951 c 176 s 1; 1973 c 123 art 5 s 7

471.86 PROTECTION FOR FIREFIGHTER DRIVER SUED FOR DAMAGES.
    Subdivision 1. Legal counsel, employment. Every city, township, or other governmental
subdivision of the state shall furnish legal counsel for any firefighter employed by it upon the
firefighter's written request in all actions brought against such firefighter to recover damages for
injury to person or property, or for wrongful death, when such action arose out of the operation of
a motor vehicle by such firefighter in the performance of official duties, and pay the expenses of
defending such suit, including witness and reasonable counsel fees, notwithstanding any contrary
provision in the law or in the charter of any such governmental subdivision.
    Subd. 2. Judgment, payment authorized. If judgment is rendered in favor of the firefighter,
costs and disbursements included therein shall be assigned to such governmental subdivision by
the firefighter, and all money collected thereon shall be paid to it. If judgment is rendered against
the firefighter, such governmental subdivision shall appropriate money from any funds available
to pay such judgment, or shall levy funds for the payment thereof pursuant to law.
    Subd. 3. Application. The obligation of this section shall not apply in any case where such
firefighter is fully indemnified against claims for such damages and for such expenses by contract
with another, and this section shall not be construed to waive any existing immunity accorded
by law to municipalities or governmental subdivisions from claims for damages sustained as
the result of the negligence of its officers, agents or servants in the exercise or performance of
governmental or public functions.
History: 1951 c 183 s 1-3; 1957 c 199 s 1; 1973 c 123 art 5 s 7; 1977 c 429 s 63; 1986 c 444

471.87 PUBLIC OFFICERS, INTEREST IN CONTRACT; PENALTY.
Except as authorized in section 471.88, a public officer who is authorized to take part
in any manner in making any sale, lease, or contract in official capacity shall not voluntarily
have a personal financial interest in that sale, lease, or contract or personally benefit financially
therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor.
History: 1951 c 379 s 1; 1955 c 41 s 1; 1986 c 444

471.88 MS 1957 [Repealed, 1961 c 651 s 2]
471.88 EXCEPTIONS.
    Subdivision 1. Coverage. The governing body of any port authority, seaway port authority,
economic development authority, watershed district, soil and water conservation district, town,
school district, hospital district, county, or city, by unanimous vote, may contract for goods or
services with an interested officer of the governmental unit in any of the following cases.
    Subd. 2. Bank or savings association. In the designation of a bank or savings association
in which the officer is interested as an authorized depository for public funds and as a source of
borrowing, no restriction shall apply to the deposit or borrowing of any funds or the designation of
a depository by such authority or governmental unit in any bank or savings association in which a
member of an authority or officer of a governmental unit shall have an interest if such deposited
funds are protected in accordance with chapter 118A; provided, however, that any member or
officer having such an interest shall disclose that the member is a director or employee of the
bank or savings association, which disclosure shall be entered upon the minutes of the authority
or governmental unit, such disclosure shall be made when such bank or savings association is
first designated as a depository or as a source of borrowing, or when such member or officer is
elected whichever is later, and such disclosure shall serve as notice of such interest and need
not be made with each successive transaction.
    Subd. 3. Official newspaper. The designation of an official newspaper, or publication of
official matters therein, in which the officer is interested when it is the only newspaper complying
with statutory or charter requirements relating to the designation or publication.
    Subd. 4. Cooperative association. A contract with a cooperative association of which the
officer is a shareholder or stockholder but not an officer or manager.
    Subd. 5. Contract with no bids required. A contract for which competitive bids are not
required by law.
    Subd. 6. Contract with volunteer fire department. A contract with a volunteer fire
department for the payment of compensation to its members or for the payment of retirement
benefits to these members.
    Subd. 6a. Contract with volunteer ambulance service. A contract with a volunteer
ambulance service for the payment of compensation to its members or for the payment of
retirement benefits to these members.
    Subd. 7. Contract with municipal band. A contract with a municipal band for the payment
of compensation to its members.
    Subd. 8.[Repealed, 1992 c 380 s 8]
    Subd. 9. Import, export, trade; port commissioner. When a port authority commissioner
or economic development authority commissioner is engaged in or employed by a firm engaged
in the business of importing or exporting or general trade, it shall be lawful for the authority to do
business with the commissioner or the commissioner's employer provided that in the fixing of any
rates affecting shippers or users of the terminal facility, said commissioner shall not vote thereon.
    Subd. 10. Import, export, trade; seaway port. When a seaway port authority commissioner
is engaged in or employed by a firm engaged in the business of importing or exporting or
general trade, it shall be lawful for the authority to do business with the commissioner or the
commissioner's employer provided that in the fixing of any rates affecting shippers or users
of the terminal facility, said commissioner shall not take part in the determination of, except
to testify, nor vote thereon.
    Subd. 11. Bank loans or trust services. When a commissioner of any public housing, port
authority, or economic development authority is employed by a bank engaged in making loans or
performing trust services involving real or personal property affected by any plan or such housing
or port authority, no restriction shall apply to any such loans made or trust services performed
by said bank if the commissioner shall disclose the nature of such loans or trust services of
which the commissioner has personal knowledge, which disclosure shall be entered upon the
minutes of such authority.
    Subd. 12. Population of 1,000 or less. An officer of a government unit may contract with the
unit to provide construction materials or services, or both, when the sealed bid process is used and
the unit has a population of 1,000 or less according to the last federal census. The officer may not
vote on the question of the contract when it comes before the governing body for consideration.
    Subd. 13. Rent. A public officer may rent space in a public facility at a rate commensurate
with that paid by other members of the public.
    Subd. 14. Local development organization. (a) For the purposes of this subdivision:
(1) "local development organization" means a housing and redevelopment authority,
economic development authority, community action program, port authority, or private
consultant; and
(2) "government unit" has the meaning given in section 471.59, subdivision 1.
(b) When a local development organization administers a loan or grant program for
individual property owners within the geographical boundaries of a government unit by an
agreement entered into by the government unit and the local development organization, an officer
of the government unit may apply for a loan or grant from the local development organization. If
an officer applies for a loan or grant, the officer must disclose as part of the official minutes of a
public meeting of the governmental unit that the officer has applied for a loan or grant.
    Subd. 15. Franchise agreement. When a home rule charter or statutory city and a utility
enter into a franchise agreement or a contract for the provision of utility services to the city, a city
council member who is an employee of the utility is not precluded from continuing to serve as a
city council member during the term of the franchise agreement or contract if the council member
abstains from voting on any official action relating to the franchise agreement or contract and
discloses the member's reason for the abstention in the official minutes of the council meeting.
    Subd. 16.[Renumbered 123B.195]
    Subd. 17. Federal or state grant programs. The governing body may apply for and accept a
state or federal grant for housing, community, or economic development in which a public officer
may benefit, if the public officer abstains from voting on measures related to the grant.
    Subd. 18. Small cities in St. Louis County; certain federal funding programs. If a city
with a population of 5,000 or less in St. Louis County administers a loan or grant program with
community development block grant funds or federal economic development administration
funds for property owners within the geographic boundaries of the city, the city may make a grant
or loan from these funds to a public officer of the city who applies, if the public officer first
discloses, as part of the official minutes of a meeting of the city, that the public officer has applied
for the funds and the public officer abstains from voting on the public officer's application.
    Subd. 19. Loan for HRA officer, if disclosed. If a city or county housing and redevelopment
authority, or an agency having the powers of a city or county housing and redevelopment authority,
administers a loan or grant program with state or federal funds, the authority may make a grant or
loan from these funds to a public officer of the authority who applies, if the public officer first
discloses, as part of the official minutes of a meeting of the authority, that the public officer has
applied for the funds and the public officer abstains from voting on the public officer's application.
    Subd. 20. Township supervisor is employee of contractor. A township may enter into
a contract governed by section 471.345, even if a township supervisor is an employee of the
contractor as long as the supervisor had no role in preparing the contractor's bid or negotiation
for the contract with the township. The supervisor is not precluded from continuing to serve
as a township official during the term of the contract if the township supervisor abstains from
voting on any official action relating to the contract and discloses the supervisor's reason for the
abstention in the official minutes of the township meeting.
History: 1961 c 651 s 1; 1965 c 806 s 1-4; 1969 c 26 s 1; 1973 c 123 art 5 s 7; 1977 c 55 s
1-3; 1978 c 651 s 1; 1979 c 20 s 1; 1986 c 399 art 2 s 38-40; 1986 c 400 s 38-40; 1986 c 444;
1Sp1986 c 3 art 2 s 41; 1991 c 65 s 1,2; 1992 c 380 s 7; 1992 c 522 s 42,43; 1993 c 224 art 9 s
43; 1996 c 471 art 7 s 18; 1998 c 269 s 1; 2001 c 7 s 90; 2001 c 132 s 1,2; 2002 c 356 s 1; 2003
c 119 s 1; 1Sp2003 c 23 s 27; 2004 c 139 s 1; 2005 c 80 s 1

471.881 EXCEPTIONS; APPLICATION.
The exceptions provided in section 471.88 shall apply notwithstanding the provisions of any
other statute or city charter.
History: 1967 c 18 s 1

471.89 CONTRACT, WHEN VOID.
    Subdivision 1. Procedure followed. A contract made pursuant to section 471.88, subdivision
5 , is void unless the procedure prescribed by subdivisions 2 and 3 is followed.
    Subd. 2. Resolution by governing body. Except in an emergency making such procedure
impracticable, the governing body of the governmental unit shall authorize the contract in
advance of its performance by adopting a resolution setting out the essential facts and determining
that the contract price is as low as or lower than the price at which the commodity or services
could be obtained elsewhere. In case of an emergency when the contract cannot be authorized in
advance, payment of the claims shall be authorized by a like resolution in which the facts of the
emergency are also stated.
    Subd. 3. Claims, affidavits filed. Before such a claim is paid, the interested officer shall
file with the clerk of the governing body an affidavit stating:
(a) The name of the officer and the office held by the officer;
(b) An itemization of the commodity or services furnished;
(c) The contract price;
(d) The reasonable value;
(e) The interest of the officer in the contract; and
(f) That to the best of the officer's knowledge and belief the contract price is as low as, or
lower than, the price at which the commodity or services could be obtained from other sources.
History: 1951 c 379 s 3; 1965 c 45 s 64-66; 1967 c 125 s 1,2; 1978 c 651 s 2,3; 1986 c 444

471.895 CERTAIN GIFTS BY INTERESTED PERSONS PROHIBITED.
    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
(b) "Gift" has the meaning given it in section 10A.071, subdivision 1.
(c) "Interested person" means a person or a representative of a person or association that has
a direct financial interest in a decision that a local official is authorized to make.
(d) "Local official" means an elected or appointed official of a county or city or of an agency,
authority, or instrumentality of a county or city.
    Subd. 2. Prohibition. An interested person may not give a gift or request another to give a
gift to a local official. A local official may not accept a gift from an interested person.
    Subd. 3. Exceptions. (a) The prohibitions in this section do not apply if the gift is:
(1) a contribution as defined in section 211A.01, subdivision 5;
(2) services to assist an official in the performance of official duties, including but not limited
to providing advice, consultation, information, and communication in connection with legislation,
and services to constituents;
(3) services of insignificant monetary value;
(4) a plaque or similar memento recognizing individual services in a field of specialty or
to a charitable cause;
(5) a trinket or memento costing $5 or less;
(6) informational material of unexceptional value; or
(7) food or a beverage given at a reception, meal, or meeting away from the recipient's
place of work by an organization before whom the recipient appears to make a speech or answer
questions as part of a program.
(b) The prohibitions in this section do not apply if the gift is given:
(1) because of the recipient's membership in a group, a majority of whose members are not
local officials, and an equivalent gift is given or offered to the other members of the group;
(2) by an interested person who is a member of the family of the recipient, unless the gift is
given on behalf of someone who is not a member of that family; or
(3) by a national or multistate organization of governmental organizations or public officials,
if a majority of the dues to the organization are paid from public funds, to attendees at a
conference sponsored by that organization, if the gift is food or a beverage given at a reception or
meal and an equivalent gift is given or offered to all other attendees.
History: 1994 c 377 s 6; 2001 c 93 s 1; 2005 c 156 art 6 s 66

471.90 STATUTORY CITIES, HOSPITAL; TRANSFER TO COUNTY.
    Subdivision 1. Authorization. When duly authorized by unanimous vote of its governing
body any statutory city owning real estate and a hospital building situated thereon and equipment
jointly with the county in which said statutory city is located, may, for a nominal consideration
or without consideration, transfer its title and interest in the real estate, hospital building, and
equipment to said county.
    Subd. 2. County may accept. Said county, when authorized by a majority vote of its
governing body, may accept such grant and conveyance.
    Subd. 3. Statutory city obligations not assumed by county. Such county does not assume
and shall not be liable for any part of the obligations incurred by said statutory city in the joint
enterprise of the statutory city and county in the construction or operation of said hospital.
History: 1951 c 497 s 1-3; 1973 c 123 art 5 s 7

471.91 AIR TRAVEL ACCOUNTS.
The governing body of any city of the first class or any county containing a city of the first
class is authorized to enter into a contract with any airline company regularly engaged in carrying
passengers on schedule flights in interstate commerce for the establishment of an air travel
account for any such city or county, subject to such terms and conditions as may be necessary and
proper to facilitate air travel by the officers and employees of the city or county, and to deposit
with the airline company a sum not exceeding $500 to the credit of such account.
History: 1951 c 630 s 1

471.92 DANGEROUS EXCAVATIONS.
    Subdivision 1. Wells, pools, cisterns, basins as nuisance. The governing body of any
county, city or town may regulate the maintenance or abandonment of open wells, cesspools,
cisterns, recharging basins, catch basins and may provide penalties for the violation thereof. The
use, maintenance or abandonment of any such installation so as to endanger the safety of any
considerable number of persons, may be defined as a public nuisance and abated pursuant to the
laws relating to public nuisances.
    Subd. 2. Abate by cover, fence. The abatement of any such nuisance may include suitably
covering such installation or surrounding the same with a suitable protective fence.
History: 1955 c 601 s 1,2; 1973 c 123 art 5 s 7

471.924 COUNTY REGULATION OF SECONDHAND AND JUNK DEALERS.
    Subdivision 1. Authority. For the purpose of promoting the health, safety, morals, and
general welfare of its residents, any county in the state may regulate the activities of secondhand
and junk dealers.
    Subd. 2. Implementation. The purposes and objectives of the authority granted by this
section shall be furthered by the adoption and passage of countywide regulations or ordinance
provisions.
History: 1985 c 289 s 9; 1996 c 404 s 15

471.925 DEFINITIONS.
For purposes of sections 471.924 to 471.929, "secondhand goods" or "junk dealer" means a
person engaged in the business of buying secondhand goods of any kind, including but not limited
to coins, gold, silver, jewelry, metals, guns, and wrecked or dismantled motor vehicles or motor
vehicles intended to be wrecked or dismantled, but not including used goods and merchandise
taken as part or full payment for new goods and merchandise.
History: 1985 c 289 s 10; 1996 c 404 s 16

471.926 RELATION TO OTHER COUNTY AUTHORITY.
Any ordinance adopted by a county pursuant to sections 471.924 to 471.929 shall
complement and be in addition to any other authority granted to a county pursuant to state
statute or rule.
History: 1985 c 289 s 11

471.927 COOPERATION WITH MUNICIPALITIES.
The governing body of any municipality may continue to exercise the authority to regulate
secondhand or junk dealers as provided by law, but may contract with the county board of
commissioners for administration and enforcement of countywide regulations or ordinance
provisions within the borders of the municipality.
History: 1985 c 289 s 12; 1996 c 404 s 17

471.928 RECORDING.
Any ordinance adopted pursuant to sections 471.924 to 471.929 must be recorded with the
county recorder. The county auditor shall file a certified copy of the ordinance.
History: 1985 c 289 s 13; 2005 c 4 s 115

471.929 ENFORCEMENT.
The duties of enforcing an ordinance adopted pursuant to this section shall be imposed by the
county board upon the county sheriff's department.
History: 1985 c 289 s 14

471.93 APPROPRIATIONS FOR HISTORICAL WORK BY MUNICIPALITIES.
In cities of the second, third or fourth class, and statutory cities at any regular or properly
called special meeting of the council, it may appropriate money for the purpose of collecting,
preserving, storing, housing, printing, publishing, distributing and exhibiting data and material
pertaining to the history of the city, for the purpose of commemorating the anniversary of any
important and outstanding event in such history, and to preserve such history data and material
for future generations.
History: 1957 c 358 s 1; 1973 c 123 art 5 s 7; 1977 c 86 s 1; 1999 c 155 s 1

471.935 APPROPRIATIONS FOR SENIOR, YOUTH CENTERS.
A statutory or home rule charter city, county, or town may appropriate money to support
the facilities, programs, and services of a public or private, not-for-profit senior citizen center
or youth center.
History: 1999 c 155 s 2

471.94 [Repealed, 1959 c 500 art 6 s 13]

471.941 APPROPRIATION FOR ARTISTIC ACTIVITIES.
For the purposes of this section, "artistic organization" means an association, corporation,
or other group of persons that provides an opportunity for persons to participate in the creation,
performance, or appreciation of artistic activities which include but are not limited to: music,
dance, drama, folk art, architecture and allied fields, painting, sculpture, photography, graphic and
craft arts, costume and fashion design, motion pictures, television, radio, tape and sound records,
activities related to the presentation, performance, execution, and exhibition of the art forms, and
the study of the arts and their application to the human environment.
A county, statutory or home rule charter city, or town may appropriate money to support
artistic organizations. The appropriation may be divided among organizations in the proportions
that the county board, city council, or town board determines.
History: 1989 c 39 s 1

471.95 PATIENTS IN PUBLIC HOSPITALS, EXTENSION OF CREDIT.
The body or bodies authorized by law to levy taxes for the maintenance and operation of
any county, city, or town hospital, sanitarium, or nursing home; hospital district; or of any such
facility operated jointly by any combination of county, city, or town, may authorize the furnishing
of care, treatment, and maintenance to the persons cared for in such hospital, sanitarium, or
nursing home without requiring that such services be paid for in advance.
Such body or bodies may authorize the employment of whatever legal and other services
which may be deemed necessary and appropriate to secure the collection of any accounts unpaid
and due the hospital, sanitarium, nursing home, or hospital district for services rendered to the
persons cared for therein, and may compromise and settle said accounts for such amounts as in
their discretion may be collectible.
History: 1961 c 58 s 1; 1973 c 123 art 5 s 7

471.96 MEMBERS OF CIVIC EDUCATIONAL ASSOCIATIONS.
    Subdivision 1. Dues, expenses. The governing bodies of cities, counties, and towns are
hereby authorized to appropriate necessary funds to provide membership of their respective
municipal corporations or political subdivisions respectively in county, regional, state, and
national associations of a civic, educational, or governmental nature which have as their purpose
the betterment and improvement of municipal governmental operations. Cities, counties, and
towns are also authorized to participate through duly designated representatives in the meetings
and activities of such associations, and the governing bodies of cities, counties, and towns
respectively are authorized to appropriate necessary funds to defray the actual and necessary
expenses of such representatives in connection therewith. For purposes of this section, the
governing body of a town is the town board.
    Subd. 2. Common law unaffected. This section does not affect any statutory, charter or
common law power of cities to provide for membership in and to participate through duly
designated representatives in the meetings and activities of state and national associations, nor the
power to appropriate money therefor.
History: 1961 c 714 s 1; 1963 c 529 s 1,2; 1967 c 329 s 1; 1973 c 123 art 5 s 7; 1975
c 288 s 1; 1987 c 90 s 10

471.97 AUTHORITY TO ADVANCE EXPENSE MONEY.
The governing bodies of cities and counties may advance to any authorized person the
estimated costs of traveling to and attending meetings both within and outside the state on official
business, including but not limited to attending meetings under the provisions of sections 465.58
and 471.96. Every person who receives advances under this section shall present a properly
verified itemized claim to the governing body promptly after the expenses are incurred. If the
actual and necessary expenses of the person were more than the amount of the advance, the
governing body shall reimburse the person for the difference between the advance and the actual
and necessary expenses. If the advance exceeded the actual and necessary expenses, the person
who received the advance shall promptly return the excess funds to the governing body, and the
governing body may deduct the amount of the excess funds from any moneys which may become
due to the person, including wages or salary.
History: 1975 c 288 s 2

471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, town,
or other political subdivision may pay to each eligible member of the National Guard or other
reserve component of the armed forces of the United States an amount equal to the difference
between the member's basic active duty military salary and the salary the member would be paid
as an active political subdivision employee, including any adjustments the member would have
received if not on leave of absence. This payment may be made only to a person whose basic
active duty military salary is less than the salary the person would be paid as an active political
subdivision employee. Back pay authorized by this section may be paid in a lump sum. Payment
under this section must not extend beyond four years from the date the employee reported for
active service, plus any additional time the employee may be legally required to serve.
(b) Subject to the limits under paragraph (g), each school district shall pay to each eligible
member of the National Guard or other reserve component of the armed forces of the United
States an amount equal to the difference between the member's basic active duty military salary
and the salary the member would be paid as an active school district employee, including any
adjustments the member would have received if not on leave of absence. The pay differential
must be based on a comparison between the member's daily rate of active duty pay, calculated
by dividing the member's military monthly salary by the number of paid days in the month, and
the member's daily rate of pay for the member's school district salary, calculated by dividing the
member's total school district salary by the number of contract days. The member's salary as a
school district employee must include the member's basic salary and any additional salary the
member earns from the school district for cocurricular activities. The differential payment under
this paragraph must be the difference between the daily rates of military pay times the number of
school district contract days the member misses because of military active duty. This payment
may be made only to a person whose basic active duty military salary is less than the salary
the person would be paid as an active school district employee. Payments may be made at the
intervals at which the member received pay as a school district employee. Payment under this
section must not extend beyond four years from the date the employee reported for active service,
plus any additional time the employee may be legally required to serve.
(c) An eligible member of the reserve components of the armed forces of the United States
is a reservist or National Guard member who was an employee of a political subdivision at
the time the member reported for active service on or after May 29, 2003, or who is on active
service on May 29, 2003.
(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a statutory or
home rule charter city, county, town, or other political subdivision has total discretion regarding
employee benefit continuation for a member who reports for active service and the terms and
conditions of any benefit.
(e) A school district must continue the employee's enrollment in health and dental coverage,
and the employer contribution toward that coverage, until the employee is covered by health and
dental coverage provided by the armed forces. If the employee had elected dependent coverage
for health or dental coverage as of the time that the employee reported for active service, a school
district must offer the employee the option to continue the dependent coverage at the employee's
own expense. A school district must permit the employee to continue participating in any pretax
account in which the employee participated when the employee reported for active service, to the
extent of employee pay available for that purpose.
(f) For purposes of this section, "active service" has the meaning given in section 190.05,
subdivision 5 , but excludes service performed exclusively for purposes of:
(1) basic combat training, advanced individual training, annual training, and periodic
inactive duty training;
(2) special training periodically made available to reserve members; and
(3) service performed in accordance with section 190.08, subdivision 3.
(g) A school district making payments under paragraph (b) shall place a sum equal to any
difference between the amount of salary that would have been paid to the employee who is
receiving the payments and the amount of salary being paid to substitutes for that employee
into a special fund that must be used to pay or partially pay the deployed employee's payments
under paragraph (b). A school district is required to pay only this amount to the deployed school
district employee.
History: 1991 c 345 art 1 s 95; 2003 c 123 s 2; 2004 c 256 art 1 s 6; 2005 c 156 art 4 s 9

471.98 SELF-INSURANCE; DEFINITIONS.
    Subdivision 1. Scope. Unless the context indicates otherwise, as used in sections 471.981
and 471.982 the terms defined in this section have the meanings given them.
    Subd. 2. Political subdivision. "Political subdivision" includes a statutory or home rule
charter city, a county, a school district, a town, a watershed management organization as defined
in section 103B.205, subdivision 13, or an instrumentality thereof, including but not limited
to instrumentalities incorporated under chapter 317A, having independent policy making and
appropriating authority. For the purposes of this section and section 471.981, the governing
body of a town is the town board.
    Subd. 3. Pool. "Pool" means any self-insurance fund or agreement for the reciprocal
assumption of risk established by or among two or more political subdivisions for coverage of their
respective risks including, but not limited to, the pools described in section 471.982, subdivision
3 . Except in connection with provisions in sections 471.981 and 471.982 that relate to bonding,
"pool" does not include a self-insurance pool for employee health benefits under section 471.617.
History: 1980 c 529 s 5; 1982 c 507 s 28; 1985 c 236 s 5; 1987 c 97 s 1; 1987 c 260 s 3;
1987 c 337 s 124; 1989 c 304 s 137; 1990 c 391 art 8 s 53; 1995 c 256 s 19; 1996 c 446 art 3 s 3

471.981 SELF-INSURANCE COVERAGE BY POLITICAL SUBDIVISION.
    Subdivision 1. Except employee health, life, accident, disability. A political subdivision
may by ordinance or resolution of its governing body self insure against liability of the political
subdivision and its officers, employees, agents and servants under chapter 466, sections 340A.801
and 340A.802 and other law, for damages resulting from its torts including torts for which the
political subdivision has immunity and those of its officers, employees, agents and servants. A
political subdivision may by ordinance or resolution of its governing body extend the coverage of
its self insurance to afford protection in excess of any limitations on liability established by law
but unless expressly provided in the ordinance or resolution extending the coverage, the statutory
limitations on liability shall not be deemed to have been waived. A political subdivision may by
ordinance or resolution of its governing body provide for self insurance against risk of damage to
any of its property, for any liability exposure, or against any other risk or hazard, not including
health, life, accident or disability of its employees, and may, through its self insurance program,
provide coverage for insuring any of its officers or employees against any risk or hazard, not
including health, life, accident or disability of its employees.
    Subd. 2. Revolving fund. A political subdivision may establish a self insurance revolving
fund. The initial amount of the fund shall be determined by the governing body. The governing
body may appropriate the amounts necessary to maintain the fund at the level specified in the
ordinance or resolution establishing it. Expenditures from the fund may be made for:
(a) payment of losses;
(b) costs of defense and investigation;
(c) premiums and deductible amounts when commercial insurance is purchased for a risk;
(d) debt service and debt service related expenses for bonds issued under this section;
(e) cost of loss control activities; and
(f) any other costs customarily borne by commercial insurers under conventional insurance
policies.
    Subd. 3. Joint pool. A pool may be established by agreement of any two or more political
subdivisions. The pool may cover the same risks and shall be subject to the same limitations as
those enumerated under subdivisions 1 and 2. The pool shall be operated under bylaws established
by the political subdivisions that participate in the pool. The bylaws and the agreement establishing
the pool may provide for bylaw amendment without unanimous consent of all pool members. The
political subdivisions participating in the fund may establish a joint board to manage the pool
with powers and duties as deemed appropriate. A political subdivision participating in the pool
shall pay to the pool all amounts assessed against it pursuant to the bylaws of the pool and may
withdraw only after it has reimbursed the pool for all amounts for which it is obligated under the
terms of the agreement. The establishment of a pool shall not increase the liability limits of any
member of the pool above the limits established by law for that governmental unit. Except as
otherwise provided in this section, pools shall be governed by section 471.59.
    Subd. 4. Mutual insurance company ties. A political subdivision or joint self-insurance
pool of counties established by the Minnesota Association of Counties Insurance Trust may create
or become a member of a mutual insurance company organized under chapter 66A, and may
exchange reciprocal or interinsurance contracts as authorized by chapter 71A. For purposes of
this subdivision and subdivisions 4a, 4b, and 4c, "county" includes a joint powers entity created
by counties for a special purpose. Membership in a mutual insurance company created by a
joint self-insurance pool of counties shall be limited to joint self-insurance pools of counties.
Notwithstanding section 66A.02, chapter 317A shall apply to a mutual insurance company created
pursuant to this subdivision. Notwithstanding section 66A.08, for a mutual insurance company
created under this subdivision, there shall be not less than 32 bona fide applications for policies of
insurance of each kind sought to be written, signed by at least 32 members, covering at least 32
separate risks, each risk, within the maximum net single risk described in this subdivision and
one year's premiums thereon paid in cash, and admitted assets of not less than $100,000, which
admitted assets shall not be less than five times the maximum net single risk, as defined in this
subdivision. The company shall have on deposit with the commissioner of insurance, as security
for all of its policyholders, stock or bonds of this state or of the United States or bonds of any of
the political subdivisions of this state, or personal obligations secured by first mortgages on real
estate within this state worth, exclusive of buildings, the amount of the lien, and bearing interest
of not less than three percent per annum, to an amount the actual market value of which, exclusive
of interest, shall never be less than $100,000. No such company shall expose itself to any loss
on any one risk or hazard, except as provided in this subdivision, in an amount exceeding ten
percent of its net assets, actual and contingent. In this subdivision, "contingent assets" means the
aggregate amount of the contingent liability of its members for the payment of loss and expenses
not provided for by its cash funds. "Contingent liability," in this subdivision, means an amount
not to exceed one annual premium as stated in the policy. No portion of any risk or hazard which
has been reinsured, as authorized by the laws of this state, shall be included in determining the
limitation of risk prescribed by this subdivision.
    Subd. 4a. Insurance installment purchase agreement. A political subdivision may, by
resolution of its governing body, and without advertisement for bids, enter into an insurance
installment purchase agreement with a self-insurance pool. Such a self-insurance pool may
purchase insurance on behalf of the participating political subdivisions and may use insurance
installment purchase agreements or other obligations of the participating political subdivisions to
provide the participating political subdivisions with coverage against all or any part of the risks
enumerated in subdivision 1 and against any risk which the political subdivision is authorized
to insure under section 176.181, subdivision 1. Notwithstanding any limitations set forth under
section 475.52, a political subdivision which has established a self-insurance revolving fund
under subdivision 2 or self-insurance pool may fund insurance claims and reserves and finance
insurance installment purchase agreements for the political subdivision, self-insurance pool, or a
mutual insurance company established pursuant to subdivision 4 and fund other costs set forth in
subdivision 2 by issuing revenue bonds, bonds which are general obligations of the self-insurance
pool or mutual insurance company, as applicable, or other obligations secured by payments
made or to be made by the political subdivisions or pool. An insurance installment purchase
agreement of a participating political subdivision may require that the political subdivision make
payments sufficient to produce revenue for the prompt payment of the bonds or other obligations,
including all interest and premiums, if any, accruing on them. The insurance installment purchase
agreements may provide for additional contributions or premiums if it is actuarially determined
that the assets of the insurance installment purchase agreements available to pay claims are
insufficient. The insurance installment purchase agreements may be multiyear contracts and shall
not be subject to any referendum, public bidding, or net debt limitation requirement of chapter 475.
    Subd. 4b. Pool may issue bonds. A self-insurance pool may issue bonds which are general
obligations of the self-insurance pool or revenue bonds secured by insurance installment purchase
agreements of the participating political subdivisions issued pursuant to subdivision 4a. The pool,
with the approval of the governing body of each participating political subdivision, shall fix the
total amount needed for the procurement of insurance and shall apportion to each participating
political subdivision the political subdivision's share of that amount and of the costs of operation,
or of annual debt service or payments required to pay such amount with interest. Notwithstanding
any limitations set forth under section 475.52, or any other general or special law or charter to the
contrary, a political subdivision may issue revenue bonds or other obligations to provide funds for
the purposes, including self-insurance, authorized by this section. Any other law notwithstanding,
bonds or other obligations issued under this subdivision may be sold at public or private sale
upon the terms and conditions the issuer determines. No election shall be required to authorize
the issuance of the obligations, and the obligations shall not be subject to any limitation on net
debt. Notwithstanding any limitation imposed by section 475.54, the obligations shall mature
in the years the issuer determines. In addition to permitted uses described above, proceeds of
obligations issued pursuant to this subdivision may be used to establish a debt service reserve for
the obligations, pay costs of issuing the bonds or to refund obligations previously issued pursuant
to this subdivision. An issuer of bonds authorized under this subdivision may designate a bank
or trust company authorized to exercise trust powers in this state as trustee for the holders of
obligations issued pursuant to this subdivision and may create funds and accounts necessary to
secure payment of the obligations. Sales proceeds of bonds issued under this subdivision, except
for sales proceeds used to pay costs of issuing the bonds shall be invested so that the average
life of the investments exceeds the average life of the bonds. The proceeds from bonds issued
under this subdivision must be held in trust and may only be paid to the self-insurer according
to the schedule of payments set forth in the trust instruments.
A qualified actuary shall certify that the amount of the scheduled payment does not exceed
the amount necessary to meet the obligation of the self-insurer at the time payment is scheduled to
be made.
Notwithstanding the investment limitations imposed in chapters 118A and 475, proceeds of
bonds issued pursuant to this subdivision, and debt service funds and reserves held in connection
with them shall be invested solely in governmental bonds, notes, bills, and other securities,
which are direct obligations or are guaranteed or insured issues of the United States, its agencies,
its instrumentalities, or organizations created by act of Congress, excluding mortgage-backed
securities.
If required by the resolution authorizing the issuance of obligations pursuant to this
subdivision, the governing body of each participating political subdivision shall annually levy a
tax sufficient to repay the costs of retirement of any bonds or to make payments under insurance
installment purchase agreements. Taxes may be levied pursuant to this subdivision without
limitation as to rate or amount.
    Subd. 4c. Installment purchase; interest rate. Participating political subdivisions may
delegate to a self-insurance pool of political subdivisions the power to determine the interest rate
on insurance installment purchase agreements provided that the rate is uniform and does not
exceed the net effective rate on revenue bonds or other obligations sold by or on behalf of the
pool by more than one-fourth of one percent.
    Subd. 4d. Political subdivision bonds for insurance procurement. (a) Notwithstanding
any limitations under section 475.52, or any other general or special law or charter to the contrary,
a political subdivision may issue bonds or other obligations to purchase insurance coverage for
employee health benefits, all or any part of the risks enumerated in subdivision 1, and any risk
which the political subdivision may insure under section 176.181, subdivision 1. The obligations
must be issued under chapter 475, except that no election is required. The obligations must mature
in the years and amounts determined by the governing body, not exceeding the lesser of three
years or the term of the insurance contract purchased with the proceeds of the obligations.
(b) In addition to the permitted uses described in paragraph (a), proceeds of obligations issued
under this subdivision may be used to establish a debt service reserve for the obligations, to pay
costs of issuing the obligations, or to refund obligations previously issued under this subdivision.
(c) An issuer of obligations authorized under this subdivision may designate a bank or
trust company authorized to exercise trust powers in this state as trustee for the holders of
obligations issued pursuant to this subdivision and may create funds and accounts necessary to
secure payment of the obligations.
(d) Notwithstanding any law to the contrary, a levy to pay obligations issued under this
subdivision is not a levy to pay bonded indebtedness or other debt levy that is exempt from levy
limitations and the levy is subject to any otherwise applicable levy limits.
    Subd. 5. Town revolving fund. A town may use a self-insurance revolving fund or pool to
discharge the bond requirements provided by chapter 367 for the town clerk and treasurer.
    Subd. 5a. City revolving fund. A home rule charter or statutory city may use a self-insurance
revolving fund or pool to discharge the bond requirements provided by state law for officers
and employees of the city.
    Subd. 6. Risk retention groups. A political subdivision or pool may purchase environmental
protection coverage from a risk retention group operating under United States Code, title 15,
sections 3901 to 3906, and may purchase nonassessable stock of the group if stock ownership
is a prerequisite for participation.
History: 1980 c 529 s 6; 1983 c 4 s 1; 1985 c 305 art 12 s 5; 1Sp1985 c 16 art 2 s 26; 1987
c 344 s 13-16; 1989 c 185 s 1; 1989 c 304 s 137; 1993 c 218 s 1; 1995 c 256 s 20-23; 1997 c
219 s 9; 2001 c 7 s 90

471.982 REVIEW OF JOINT SELF-INSURANCE POOL.
    Subdivision 1. Submission, review, report. Prior to the formation of a pool, there shall be
submitted for approval to the commissioner of commerce a complete written proposal of the
pool's operation, including, but not limited to, administration, claims adjusting, membership,
capitalization, and provision for payment of claims exceeding the pool's assets. The commissioner
shall review the proposal and approve or disapprove within 60 days after receipt to assure that
proper insurance techniques and procedures are included in the proposal. If the commissioner
does not disapprove within 60 days after receipt of the proposal, the proposal is deemed approved.
Each pool shall file with the commissioner of commerce on or before March 1 of each year a
written report in a form prescribed by the commissioner as to its condition. The report shall
include a detailed statement of assets and liabilities, the amount and character of the business
transacted, and the moneys reserved and expended during the previous year.
    Subd. 2. Rules; considerations. The commissioner of commerce is authorized to adopt
administrative rules pursuant to chapter 14. These rules may provide standards or guidelines
governing the formation, operation, administration, dissolution of self-insurance pools, and other
reasonable requirements to further the purpose of this section. In developing the rules under this
section, the commissioner shall consider the following:
(a) the requirements for self-insuring pools of political subdivisions shall be no more
restrictive and may be less restrictive than the requirements for self-insuring pools of private
employers;
(b) all participants in the pool are jointly and severally liable for all claims and expenses of
the pool;
(c) each pool shall contract with a service company licensed by the commissioner to provide
or contract for all administrative services required by the pool. No vendor of risk management
services or entity administering a self insurance plan under this section may transact such business
in this state unless it is licensed to do so by the commissioner pursuant to section 60A.23,
subdivision 8 ;
(d) the service company has sole responsibility for the settlement of all claims against the
pool or its members for which the pool may provide indemnification;
(e) a minimum premium volume for each pool shall be established. The minimum premium
volume may differ because of the kinds of coverage provided, and the limits of liability for the
coverage;
(f) all premiums or other assessments due to the pool from members shall be payable prior to
the period for which coverage is being provided, or at equal intervals throughout the period;
(g) premiums shall be neither excessive, inadequate, nor unfairly discriminatory;
(h) the commissioner may require each pool to purchase excess insurance above certain
limits and in a particular form. The limits or form of the excess insurance may differ based on
the kinds of coverage offered by a pool, the limits of liability of the coverage, and the revenues
available to pool members for the payment of premiums or assessments;
(i) each pool shall be audited annually by a certified public accountant;
(j) Whether limitations on the payment of dividends to pool members are necessary to assure
the solvency of the pool in view of the taxing and levying authority of political subdivisions;
(k) no participant may withdraw from a pool for a period of at least three years after its
initial entry into the pool;
(l) the amount of any liabilities in excess of assets shall be assessed to members of the pool
within 30 days after a deficiency is identified and shall be payable by the member within 90 days;
(m) the investment policies of the pool shall be governed by the laws governing investments
by cities pursuant to section 118A.04;
(n) pools shall be subject to the standards of unfair methods of competition and unfair or
deceptive acts or practices established in chapter 72A;
(o) other requirements that are necessary to protect the solvency of the pool, the rights
and privileges of claimants against the pool, and citizens of the members of the pool shall be
included in the rules.
    Subd. 3. Exemptions. Self-insurance pools established and open for enrollment on a
statewide basis by the Minnesota League of Cities Insurance Trust, the Minnesota School Boards
Association Insurance Trust, the Minnesota Association of Townships Insurance and Bond Trust,
or the Minnesota Association of Counties Insurance Trust and the political subdivisions that
belong to them are exempt from the requirements of this section and section 65B.48, subdivision
3 . In addition, the Minnesota Association of Townships Insurance and Bond Trust and the
townships that belong to it are exempt from the requirement to hold the certificate of surety
authorization issued by the commissioner of commerce as provided in section 574.15.
History: 1980 c 529 s 7; 1982 c 424 s 130; 1983 c 289 s 114 subd 1; 1983 c 290 s 169,170;
1983 c 328 s 10; 1984 c 655 art 1 s 92; 1986 c 455 s 78; 1987 c 102 s 1; 1987 c 384 art 2 s 1;
1995 c 233 art 2 s 56; 1996 c 399 art 2 s 12

471.985 COUNTY AND CITY ORDINANCES PROHIBITING TRESPASSING.
    Subdivision 1. Authority. The county board of any county or the city council of any home
rule charter or statutory city may enact ordinances to prohibit persons from entering uninvited
onto the land of another to consume alcohol or controlled substances.
The county board or city council may enact ordinances to prohibit a person from bringing a
motor vehicle onto the land of another without invitation to facilitate the consumption of alcohol
or controlled substances on that land.
    Subd. 2. Determination of purpose. To determine the purpose of an uninvited entry
of a person or motor vehicle, factors to be considered shall include, but are not limited to, the
following:
(a) time of day;
(b) presence of containers intended to contain or containing alcohol;
(c) presence of equipment used to dispense alcoholic beverages;
(d) presence of paraphernalia containing identifiable residues of a controlled substance;
(e) noise level;
(f) lighting;
(g) identified physiological responses; and
(h) conduct of persons in the presence of a peace officer.
    Subd. 3. Violations. A person who violates an ordinance enacted pursuant to subdivision 1
is guilty of a misdemeanor.
    Subd. 4. Defenses. Express consent, endorsement, or ratification by a landowner of an entry
onto land is an absolute defense to charges under an ordinance enacted pursuant to subdivision 1.
A landowner who expressly consents to, endorses, or ratifies an entry onto land shall not be
presumed to be in control of the persons gathered on land, nor is the landowner presumed to have
knowledge of an unlawful act merely because of the express consent, endorsement, or ratification.
History: 1984 c 620 s 1

471.99 NOTICE OF GOVERNMENT ACTION.
Except when other notice is required by law, the state, or any of its political subdivisions,
shall give any affected town, statutory or home rule charter city, and county 30 days prior written
notice of any action by the state or political subdivision that will directly affect the use of land in
the town, statutory or home rule charter city, or county relating to sanitary landfills, waste disposal
sites, construction of new buildings, roads, and related facilities where the cost exceeds $15,000,
and park establishments or boundary expansions. Master plans prepared pursuant to section
86A.09 shall be considered adequate notice as required by this section. Failure to give any notice
required by this section shall not be grounds for a civil or criminal action of any nature against
any party, for the imposition of a civil or criminal penalty against any party or for the challenge or
invalidation of any action taken by the state, a political subdivision or any other party.
History: 1983 c 218 s 1

471.991 DEFINITIONS.
    Subdivision 1. Terms. For the purposes of Laws 1984, chapter 651, the following terms have
the meanings given them.
    Subd. 2. Balanced class. "Balanced class" means any class in which no more than 80 percent
of the members are male and no more than 70 percent of the members are female.
    Subd. 3. Comparable work value. "Comparable work value" means the value of work
measured by the skill, effort, responsibility, and working conditions normally required in the
performance of the work.
    Subd. 4. Class. "Class" means one or more positions that have similar duties, responsibilities,
and general qualifications necessary to perform the duties, with comparable selection procedures
used to recruit employees, and use of the same compensation schedule.
    Subd. 5. Equitable compensation relationship. "Equitable compensation relationship"
means that the compensation for female-dominated classes is not consistently below the
compensation for male-dominated classes of comparable work value, as determined under section
471.994, within the political subdivision.
    Subd. 6. Female-dominated class. "Female-dominated class" means any class in which 70
percent or more of the members are female.
    Subd. 7. Male-dominated class. "Male-dominated class" means any class in which 80
percent or more of the members are male.
    Subd. 8. Position. "Position" means a group of current duties and responsibilities assigned
or delegated by a supervisor to an individual.
History: 1984 c 651 s 1; 1990 c 512 s 1

471.992 EQUITABLE COMPENSATION RELATIONSHIPS.
    Subdivision 1. Establishment. Subject to sections 179A.01 to 179A.25 and sections
177.41 to 177.44 but notwithstanding any other law to the contrary, every political subdivision
of this state shall establish equitable compensation relationships between female-dominated,
male-dominated, and balanced classes of employees in order to eliminate sex-based wage
disparities in public employment in this state. A primary consideration in negotiating, establishing,
recommending, and approving compensation is comparable work value in relationship to other
employee positions within the political subdivision. This law may not be construed to limit the
ability of the parties to collectively bargain in good faith.
    Subd. 2. Arbitration. In all interest arbitration involving a class other than a balanced class
held under sections 179A.01 to 179A.25, the arbitrator shall consider the equitable compensation
relationship standards established in this section and the standards established under section
471.993, together with other standards appropriate to interest arbitration. The arbitrator shall
consider both the results of a job evaluation study and any employee objections to the study. In
interest arbitration for a balanced class, the arbitrator may consider the standards established
under this section and the results of, and any employee objections to, a job evaluation study, but
shall also consider similar or like classifications in other political subdivisions.
    Subd. 3.[Repealed, 1990 c 512 s 13]
    Subd. 4. Collective bargaining. In collective bargaining for a balanced class, the parties
may consider the equitable compensation relationship standards established by this section and
the results of a job evaluation study, but shall also consider similar or like classifications in
other political subdivisions.
History: 1984 c 462 s 27; 1984 c 651 s 2; 1986 c 459 s 1; 1Sp1986 c 3 art 2 s 18; 1990 c
512 s 2-4

471.993 COMPENSATION RELATIONSHIPS OF POSITIONS.
    Subdivision 1. Assurance of reasonable relationship. In preparing management negotiation
positions for compensation established through collective bargaining under chapter 179A and
in establishing, recommending, and approving compensation plans for employees of political
subdivisions not represented by an exclusive representative under chapter 179A, the respective
political subdivision as the public employer, as defined in section 179A.03, subdivision 15, or,
where appropriate, the Minnesota Merit System, shall assure that:
(1) compensation for positions in the classified civil service, unclassified civil service, and
management bear reasonable relationship to one another;
(2) compensation for positions bear reasonable relationship to similar positions outside of
that particular political subdivision's employment; and
(3) compensation for positions within the employer's work force bear reasonable relationship
among related job classes and among various levels within the same occupational group.
    Subd. 2. Reasonable relationship defined. For purposes of subdivision 1, compensation
for positions bear "reasonable relationship" to one another if:
(1) the compensation for positions which require comparable skill, effort, responsibility,
working conditions, and other relevant work-related criteria is comparable; and
(2) the compensation for positions which require differing skill, effort, responsibility,
working conditions, and other relevant work-related criteria is proportional to the skill, effort,
responsibility, working conditions, and other relevant work-related criteria required.
History: 1984 c 651 s 3; 1987 c 384 art 1 s 42

471.994 JOB EVALUATION SYSTEM.
Every political subdivision shall use a job evaluation system in order to determine the
comparable work value of the work performed by each class of its employees. The system must
be maintained and updated to account for new employee classes and any changes in factors
affecting the comparable work value of existing classes. A political subdivision that substantially
modifies its job evaluation system or adopts a new system shall notify the commissioner. The
political subdivision may use the system of some other public employer in the state. Each political
subdivision shall meet and confer with the exclusive representatives of their employees on the
development or selection of a job evaluation system.
History: 1984 c 651 s 4; 1990 c 512 s 5

471.995 REPORT AVAILABILITY.
Notwithstanding section 13.37, every political subdivision shall submit a report containing
the results of the job evaluation system to the exclusive representatives of their employees to
be used by both parties in contract negotiations. At a minimum, the report to each exclusive
representative shall identify the female-dominated classes in the political subdivision for which
compensation inequity exists, based on the comparable work value, and all data not on individuals
used to support these findings.
History: 1984 c 651 s 5

471.996 [Repealed, 1990 c 512 s 13]

471.9965 [Repealed, 1986 c 459 s 3]

471.9966 EFFECT ON OTHER LAW.
Notwithstanding section 179A.13, subdivision 2, it is not an unfair labor practice for a
political subdivision to specify an amount of funds to be used solely to correct inequitable
compensation relationships. A political subdivision may specify an amount of funds to be used for
general salary increases. The provisions of sections 471.991 to 471.999 do not diminish a political
subdivision's duty to bargain in good faith under chapter 179A or sections 179.35 to 179.39.
History: 1986 c 459 s 2

471.997 HUMAN RIGHTS ACT, EVIDENCE.
The commissioner of human rights or any state court may use as evidence the results of any
job evaluation system established under section 471.994 and the reports compiled under section
471.995 in any proceeding or action alleging discrimination.
History: 1984 c 651 s 8; 1989 c 223 s 2

471.9975 [Repealed, 1996 c 310 s 1]

471.998 [Repealed, 1996 c 310 s 1]

471.9981 COUNTIES AND CITIES; PAY EQUITY COMPLIANCE.
    Subdivision 1. 1988 report. A home rule charter or statutory city or county, referred to in
this section as a "governmental subdivision," that employs ten or more people and that did not
submit a report according to repealed section 471.998, shall submit the report by October 1, 1988,
to the commissioner of employee relations.
The plan for implementing equitable compensation for the employees must provide for
complete implementation not later than December 31, 1991, unless a later date has been approved
by the commissioner. If a report was filed before October 1, 1987, and had an implementation
date after December 31, 1991, the date in the report shall be approved by the commissioner. The
plan need not contain a market study.
    Subd. 2.[Repealed, 1990 c 512 s 13]
    Subd. 3.[Repealed, 1990 c 512 s 13]
    Subd. 4.[Repealed, 1990 c 512 s 13]
    Subd. 5.[Repealed, 1990 c 512 s 13]
    Subd. 5a. Implementation report. By January 31, 1992, each political subdivision shall
submit to the commissioner an implementation report that includes the following information
as of December 31, 1991:
(1) a list of all job classes in the political subdivision;
(2) the number of employees in each class;
(3) the number of female employees in each class;
(4) an identification of each class as male-dominated, female-dominated, or balanced as
defined in section 471.991;
(5) the comparable work value of each class as determined by the job evaluation used by the
subdivision in accordance with section 471.994;
(6) the minimum and maximum salary for each class, if salary ranges have been established,
and the amount of time in employment required to qualify for the maximum;
(7) any additional cash compensation, such as bonuses or lump-sum payments, paid to
the members of a class; and
(8) any other information requested by the commissioner.
If a subdivision fails to submit a report, the commissioner shall find the subdivision not in
compliance with subdivision 6 and shall impose the penalty prescribed by that subdivision.
    Subd. 5b. Public data. The implementation report required by subdivision 5a is public
data governed by chapter 13.
    Subd. 6. Penalty for failure to implement plan. (a) The commissioner of employee
relations shall review the implementation report submitted by a governmental subdivision
to determine whether the subdivision has established equitable compensation relationships as
required by section 471.992, subdivision 1, by December 31, 1991, or the later date approved
by the commissioner. The commissioner shall notify a subdivision found to have achieved
compliance with section 471.992, subdivision 1.
(b) If the commissioner finds that the subdivision is not in compliance based on the
information contained in the implementation report required by section 471.9981, subdivision
5a , the commissioner shall notify the subdivision of the basis for the finding. The notice must
include a detailed description of the basis for the finding, specific recommended actions to
achieve compliance, and an estimated cost of compliance. If the subdivision disagrees with the
finding, it shall notify the commissioner, who shall provide a specified time period in which to
submit additional evidence in support of its claim that it is in compliance. The commissioner shall
consider at least the following additional information in reconsidering whether the subdivision is
in compliance:
(1) recruitment difficulties;
(2) retention difficulties;
(3) recent arbitration awards that are inconsistent with equitable compensation relationships;
and
(4) information that can demonstrate a good-faith effort to achieve compliance and continued
progress toward compliance, including any constraints the subdivision faces.
The subdivision shall also present a plan for achieving compliance and a date for additional
review by the commissioner.
(c) If the subdivision does not make the changes to achieve compliance within a reasonable
time set by the commissioner, the commissioner shall notify the subdivision and the commissioner
of revenue that the subdivision is subject to a five percent reduction in the aid that would otherwise
be payable to that governmental subdivision under section 126C.13, 273.1398, or sections
477A.011 to 477A.014, or to a fine of $100 a day, whichever is greatest. The commissioner of
revenue shall enforce the penalty beginning in calendar year 1992 or in the first calendar year
beginning after the date for implementation of the plan of a governmental subdivision for which
the commissioner of employee relations has approved an implementation date later than December
31, 1991. However, the commissioner of revenue may not enforce a penalty until after the end
of the first regular legislative session after a report listing the subdivision as not in compliance
has been submitted to the legislature under section 471.999. The penalty remains in effect until
the subdivision achieves compliance. The commissioner of employee relations may suspend the
penalty upon making a finding that the failure to implement was attributable to circumstances
beyond the control of the governmental subdivision or to severe hardship, or that noncompliance
results from factors unrelated to the sex of the members dominating the affected classes and that
the subdivision is taking substantial steps to achieve compliance to the extent possible.
    Subd. 7. Appeal. A governmental subdivision may appeal the imposition of a penalty under
subdivision 6 by filing a notice of appeal with the commissioner of employee relations within
30 days of the commissioner's notification to the subdivision of the penalty. An appeal must
be heard as a contested case under sections 14.57 to 14.62. No penalty may be imposed while
an appeal is pending.
History: 1988 c 702 s 15; 1990 c 512 s 7-10; 1997 c 7 art 1 s 147; 1998 c 397 art 11 s 3

471.999 REPORT TO LEGISLATURE.
The commissioner of employee relations shall report to the legislature by January 1 of
each year on the status of compliance with section 471.992, subdivision 1, by governmental
subdivisions.
The report must include a list of the political subdivisions in compliance with section
471.992, subdivision 1, and the estimated cost of compliance. The report must also include a
list of political subdivisions found by the commissioner to be not in compliance, the basis for
that finding, recommended changes to achieve compliance, estimated cost of compliance, and
recommended penalties, if any. The commissioner's report must include a list of subdivisions
that did not comply with the reporting requirements of this section. The commissioner may
request, and a subdivision shall provide, any additional information needed for the preparation
of a report under this subdivision.
Notwithstanding any rule to the contrary, beginning in 2005, a political subdivision must
report on its compliance with the requirements of sections 471.991 to 471.999 no more frequently
than once every three years. No report from a political subdivision is required for 2003 and 2004.
History: 1984 c 651 s 11; 1990 c 512 s 11; 1Sp2003 c 1 art 2 s 112; 1Sp2005 c 1 art 4 s 113

471.9995 RENTAL DWELLING NOTICE.
Any license or registration or certificate of occupancy or a similar document that is issued by
a home rule charter or statutory city or by a town and that is required to be posted in a building
containing multiple rental dwelling units shall contain a statement that tenants of the dwelling
units may contact the attorney general for information regarding the rights and obligations of
owners and tenants under state law. The statement shall include the telephone number and address
of the attorney general.
History: 1984 c 586 s 6

471.9996 RENT CONTROL PROHIBITED.
    Subdivision 1. In general. No statutory or home rule charter city, county, or town may adopt
or renew by ordinance or otherwise any law to control rents on private residential property except
as provided in subdivision 2. This section does not impair the right of any statutory or home
rule charter city, county, or town:
(1) to manage or control property in which it has a financial interest through a housing
authority or similar agency;
(2) to contract with a property owner;
(3) to act as required or authorized by laws or regulations of the United States government
or this state; or
(4) to mediate between property owners and tenants for the purpose of negotiating rents.
    Subd. 2. Exception. Subdivision 1 does not preclude a statutory or home rule charter city,
county, or town from controlling rents on private residential property to the extent that the city,
county, or town has the power to adopt an ordinance, charter amendment, or law to control these
rents if the ordinance, charter amendment, or law that controls rents is approved in a general
election. Subdivision 1 does not limit any power or authority of the voters of a statutory or home
rule charter city, county, or town to petition for an ordinance or charter amendment to control
rents on private residential property to the extent that the power or authority is otherwise provided
for by law, and if the ordinance or charter amendment is approved in a general election. This
subdivision does not grant any additional power or authority to the citizens of a statutory or home
rule charter city, county, or town to vote on any question beyond that contained in other law.
    Subdivision 1does not apply to any statutory city unless the citizens of the statutory city
have the authority to vote on the issue of rent control granted by other law.
History: 1984 c 551 s 1

471.9997 FEDERALLY ASSISTED RENTAL HOUSING; IMPACT STATEMENT.
At least 12 months before termination of participation in a federally assisted rental housing
program, including project-based Section 8 and Section 236 rental housing, the owner of the
federally assisted rental housing must submit a statement regarding the impact of termination on
the residents of the rental housing to the governing body of the local government unit in which the
housing is located. The impact statement must identify the number of units that will no longer
be subject to rent restrictions imposed by the federal program, the estimated rents that will be
charged as compared to rents charged under the federal program, and actions the owner will take
to assist displaced tenants in obtaining other housing. A copy of the impact statement must be
provided to each resident of the affected building, the Minnesota Housing Finance Agency, and,
if the property is located in the metropolitan area as defined in section 473.121, subdivision 2,
the Metropolitan Council.
History: 1998 c 389 art 14 s 6