2006 Minnesota Statutes

447.31 CREATION AND REORGANIZATION OF HOSPITAL DISTRICTS.
    Subdivision 1. Resolutions. Any two or more cities and towns, however organized, except
cities of the first class, may create a hospital district. They must do so by resolutions adopted by
their respective governing bodies or electors. A hospital district may be reorganized according to
sections 447.31 to 447.37. Reorganization must be by resolutions adopted by the district's hospital
board and the governing body or voters of each city and town in the district.
    Subd. 2. Territory. No city or town shall be included in a hospital district created or
reorganized under this section unless its entire territory is included in the district and the territory
is contiguous at one or more points to the territory of one or more of the other cities or towns
included.
    Subd. 3. Contents of resolution. A resolution under subdivision 1 must state that a hospital
district is authorized to be created under sections 447.31 to 447.37, or that an existing hospital
district is authorized to be reorganized under sections 447.31 to 447.37, in order to acquire,
improve, and run hospital and nursing home facilities that the hospital board decides are necessary
and expedient in accordance with sections 447.31 to 447.37. The resolution must name the two
or more cities or towns included in the district. The resolution must be adopted by a two-thirds
majority of the members-elect of the governing body or board acting on it, or by the voters of
the city or town as provided in this section.
Each resolution adopted by the governing body of a city or town must be published in its
official newspaper and takes effect 40 days after publication, unless a petition for referendum
on the resolution is filed with the governing body within 40 days. A petition for referendum
must be signed by at least five percent of the number of voters voting at the last election of
officers. If a petition is filed, the resolution does not take effect until approved by a majority of
voters voting on it at a regular municipal election or a special election which the governing body
may call for that purpose.
The resolution may also be initiated by petition filed with the governing body of the city or
town, signed by at least ten percent of the number of voters voting at the last general election.
A petition must present the text of the proposed resolution and request an election on it. If the
petition is filed, the governing body shall call a special election for the purpose, to be held within
30 days after the filing of the petition, or may submit the resolution to a vote at a regular municipal
election that is to be held within the 30-day period. The resolution takes effect if approved by
a majority of voters voting on it at the election. Only one election shall be held within any
given 12-month period upon resolutions initiated by petition. The notice of the election and the
ballot used must contain the text of the resolution, followed by the question: "Shall the above
resolution be approved?"
    Subd. 4. Filing resolutions. The hospital district is created or reorganized on the effective
date of the last resolution required to authorize it. However, certified copies of each resolution
must be sent by the clerk or other recording officer of the governing body or board adopting it to
the county auditor of each county containing territory in the hospital district. On receiving the
required resolutions, each county auditor shall record certified copies of them as a public record
with the county recorder of the auditor's county. The county auditor of the county containing most
of the population of the district shall send a certified copy of each resolution to the secretary of
state to be filed as a public record.
    Subd. 5. Special election for new board. As soon as may be after the reorganization or
creation of a hospital district, a special election for a new board must be called. The hospital
board or, in the case of a new district, the governing body of the most populous city or town in
the district, shall call the election. The election must be noticed, held, and canvassed like other
hospital district elections. The members of the board qualify immediately on election and assume
the powers and duties in this section.
    Subd. 6. Corporate powers of district. A hospital district created or reorganized under
sections 447.31 to 447.37 is a municipal corporation and political subdivision of the state and has
perpetual succession. It may contract and be contracted with and sue and be sued. It may use a
corporate seal. It may acquire real and personal property as needed. It may hold, manage, control,
sell, convey, or otherwise dispose of the property as its interests require.
Upon reorganization of a district, real and personal assets of the preexisting district pass to
the new reorganized district. "Assets" includes all property in which the county has held legal
title for the use and benefit of the preexisting district. All legally valid and enforceable claims
and contract obligations of the preexisting district must be assumed by the new reorganized
district. Taxable property in the district is taxable to pay any bonded debt incurred by or on behalf
of the preexisting district. Real, personal, or mixed properties that are acquired, owned, leased,
controlled, used, or occupied by a district for the purposes of sections 447.31 to 447.37 are
exempt from taxation by the state or its political subdivisions.
History: 1959 c 570 s 1; 1961 c 152 s 1-3; 1973 c 123 art 5 s 7; 1976 c 181 s 2; 1986 c 444;
1987 c 229 art 10 s 1; 1992 c 549 art 5 s 15,16; 2005 c 4 s 108