Bill Text: MN SF423 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Clean water fund expenditures authorization; pollution reporting requirements and petroleum tank release cleanup act modifications; obsolete rules repeal; sanitary district restructuring authorization

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2013-03-14 - Comm report: To pass and re-referred to Finance [SF423 Detail]

Download: Minnesota-2013-SF423-Engrossed.html

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A bill for an act

relating to environment; authorizing certain expenditures from clean water fund;
modifying reporting requirements; modifying Petroleum Tank Release Cleanup
Act; providing for wastewater laboratory certification; providing for sanitary
districts; repealing obsolete rules; appropriating money;amending Minnesota
Statutes 2012, sections 114D.50, subdivision 4; 115A.1320, subdivision 1;
115B.20, subdivision 6; 115B.28, subdivision 1; 115C.02, subdivision 4;
115C.08, subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision
6; 275.066; 473.846; proposing coding for new law in Minnesota Statutes,
chapter 115; proposing coding for new law as Minnesota Statutes, chapter 442A;
repealing Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7,
8, 9, 10; 115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27;
115.28; 115.29; 115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; 115.37;
Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030;
7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330;
9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ENVIRONMENTAL POLICY

    Section 1. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
clean water fund must meet or exceed the constitutional requirements to protect, enhance,
and restore water quality in lakes, rivers, and streams and to protect groundwater and
drinking water from degradation. Priority may be given to projects that meet more than
one of these requirements. A project receiving funding from the clean water fund shall
include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
measuring and evaluating the results. A project must be consistent with current science
and incorporate state-of-the-art technology.
(b) Money from the clean water fund shall be expended to balance the benefits
across all regions and residents of the state.
(c) A state agency or other recipient of a direct appropriation from the clean
water fund must compile and submit all information for proposed and funded projects
or programs, including the proposed measurable outcomes and all other items required
under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
Legislative Coordinating Commission must post submitted information on the Web site
required under section 3.303, subdivision 10, as soon as it becomes available. Information
classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
to be placed on the Web site.
(d) Grants funded by the clean water fund must be implemented according to section
16B.98 and must account for all expenditures. Proposals must specify a process for any
regranting envisioned. Priority for grant proposals must be given to proposals involving
grants that will be competitively awarded.
(e) Money from the clean water fund may only be spent on projects that benefit
Minnesota waters.
(f) When practicable, a direct recipient of an appropriation from the clean water fund
shall prominently display on the recipient's Web site home page the legacy logo required
under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
361, article 3, section 5, accompanied by the phrase "Click here for more information."
When a person clicks on the legacy logo image, the Web site must direct the person to
a Web page that includes both the contact information that a person may use to obtain
additional information, as well as a link to the Legislative Coordinating Commission Web
site required under section 3.303, subdivision 10.
(g) Future eligibility for money from the clean water fund is contingent upon a state
agency or other recipient satisfying all applicable requirements in this section, as well as
any additional requirements contained in applicable session law.
(h) Money from the clean water fund may be used to leverage federal funds through
execution of formal project partnership agreements with federal agencies consistent with
respective federal agency partnership agreement requirements.

    Sec. 2. [115.84] WASTEWATER LABORATORY CERTIFICATION.
    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
performing wastewater or water analytical laboratory work, the results of which are
reported to the agency to determine compliance with a national pollutant discharge
elimination system (NPDES) permit condition or other regulatory document, must be
certified according to this section.
(b) This section does not apply to:
(1) laboratories that are private and for-profit;
(2) laboratories that perform drinking water analyses; or
(3) laboratories that perform remediation program analyses, such as Superfund or
petroleum analytical work.
(c) Until adoption of rules under subdivision 2, laboratories required to be certified
under this section and submitting data to the agency must register by submitting
registration information required by the agency or be certified or approved by a recognized
certification authority, as required by agency programs.
    Subd 2. Rules. The agency may adopt rules to govern certification of laboratories
according to this section. Notwithstanding section 16A.1283, the agency may adopt
rules establishing fees.
    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
the agency shall collect fees in amounts necessary to cover the reasonable costs of
the certification program, including reviewing applications, issuing certifications, and
conducting audits and compliance assistance.
(b) Fees under this section must be based on the number, type, and complexity of
analytical methods that laboratories are certified to perform.
(c) Revenue from fees charged by the agency for certification shall be credited to
the environmental fund.
    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
wastewater laboratory certification for, but is not limited to, any of the following reasons:
fraud, failure to follow applicable requirements, failure to respond to documented
deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
certification fees, or other violations of federal or state law.
(b) This section and the rules adopted under it may be enforced by any means
provided in section 115.071.

    Sec. 3. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
115A.1310 to 115A.1330.
    (b) The agency shall establish procedures for:
    (1) receipt and maintenance of the registration statements and certifications filed
with the agency under section 115A.1312; and
    (2) making the statements and certifications easily available to manufacturers,
retailers, and members of the public.
    (c) The agency shall annually review the value of the following variables that are
part of the formula used to calculate a manufacturer's annual registration fee under section
115A.1314, subdivision 1 :
    (1) the proportion of sales of video display devices sold to households that
manufacturers are required to recycle;
    (2) the estimated per-pound price of recycling covered electronic devices sold to
households;
    (3) the base registration fee; and
    (4) the multiplier established for the weight of covered electronic devices collected
in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
these values must be changed in order to improve the efficiency or effectiveness of the
activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
recommended changes and the reasons for them to the chairs of the senate and house of
representatives committees with jurisdiction over solid waste policy.
    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
sales of video display devices sold to households by each manufacturer during the preceding
program year, based on national sales data, and forward the estimates to the department.
    (e) The agency shall provide a report to the governor and the legislature on the
implementation of sections 115A.1310 to 115A.1330. For each program year, the report
must discuss the total weight of covered electronic devices recycled and a summary
of information in the reports submitted by manufacturers and recyclers under section
115A.1316 . The report must also discuss the various collection programs used by
manufacturers to collect covered electronic devices; information regarding covered
electronic devices that are being collected by persons other than registered manufacturers,
collectors, and recyclers; and information about covered electronic devices, if any, being
disposed of in landfills in this state. The report must include a description of enforcement
actions under sections 115A.1310 to 115A.1330. The agency may include in its report
other information received by the agency regarding the implementation of sections
115A.1312 to 115A.1330. The report must be done in conjunction with the report required
under section 115D.10 115A.121.
    (f) The agency shall promote public participation in the activities regulated under
sections 115A.1312 to 115A.1330 through public education and outreach efforts.
    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
provisions enforced by the department, as provided in subdivision 2. The agency may
revoke a registration of a collector or recycler found to have violated sections 115A.1310
to 115A.1330.
    (h) The agency shall facilitate communication between counties, collection and
recycling centers, and manufacturers to ensure that manufacturers are aware of video
display devices available for recycling.
    (i) The agency shall develop a form retailers must use to report information to
manufacturers under section 115A.1318 and post it on the agency's Web site.
    (j) The agency shall post on its Web site the contact information provided by each
manufacturer under section 115A.1318, paragraph (e).

    Sec. 4. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
year, the commissioner of agriculture and the agency shall submit to the senate Finance
Committee, the house of representatives Ways and Means Committee, the Environment
and Natural Resources Committees of the senate and house of representatives, the Finance
Division of the senate Committee on Environment and Natural Resources, and the house
of representatives Committee on Environment and Natural Resources Finance, and the
Environmental Quality Board a report detailing the activities for which money has been
spent pursuant to this section during the previous fiscal year.
EFFECTIVE DATE.This section is effective July 1, 2013.

    Sec. 5. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
    Subdivision 1. Duties. In addition to performing duties specified in sections
115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
in section 115B.35, the agency shall:
(1) adopt rules, including rules governing practice and procedure before the agency,
the form and procedure for applications for compensation, and procedures for claims
investigations;
(2) publicize the availability of compensation and application procedures on a
statewide basis with special emphasis on geographical areas surrounding sites identified
by the agency as having releases from a facility where a harmful substance was placed or
came to be located prior to July 1, 1983;
(3) collect, analyze, and make available to the public, in consultation with the
Department of Health, the Pollution Control Agency, the University of Minnesota Medical
and Public Health Schools, and the medical community, data regarding injuries relating to
exposure to harmful substances; and
(4) prepare and transmit by December 31 of each year to the governor and the
legislature an annual legislative report required under section 115B.20, subdivision
6, to include (i) a summary of agency activity under clause (3); (ii) data determined
by the agency from actual cases, including but not limited to number of cases, actual
compensation received by each claimant, types of cases, and types of injuries compensated,
as they relate to types of harmful substances as well as length of exposure, but excluding
identification of the claimants; (iii) all administrative costs associated with the business of
the agency; and (iv) agency recommendations for legislative changes, further study, or any
other recommendation aimed at improving the system of compensation.

    Sec. 6. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
eliminate, or clean up a release to protect the public health and welfare or the environment.
Corrective action may include, environmental covenants pursuant to chapter 114E, an
affidavit required under section 116.48, subdivision 6, or similar notice of a release
recorded with real property records.

    Sec. 7. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
(1) to administer the petroleum tank release cleanup program established in this
chapter;
(2) for agency administrative costs under sections 116.46 to 116.50, sections
115C.03 to 115C.06, and costs of corrective action taken by the agency under section
115C.03 , including investigations;
(3) for costs of recovering expenses of corrective actions under section 115C.04;
(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
(5) for agency administrative costs of enforcing rules governing the construction,
installation, operation, and closure of aboveground and underground petroleum storage
tanks;
(6) for reimbursement of the environmental response, compensation, and compliance
account under subdivision 5 and section 115B.26, subdivision 4;
(7) for administrative and staff costs as set by the board to administer the petroleum
tank release program established in this chapter;
(8) for corrective action performance audits under section 115C.093;
(9) for contamination cleanup grants, as provided in paragraph (c);
(10) to assess and remove abandoned underground storage tanks under section
115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
services costs necessary to complete the tank removal project, including, but not limited
to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
an excavation report; and
(11) for property acquisition by the agency when the agency has determined that
purchasing a property where a release has occurred is the most appropriate corrective
action. The to acquire interests in real or personal property, including easements,
environmental covenants under chapter 114E, and leases, that the agency determines are
necessary for corrective actions or to ensure the protectiveness of corrective actions. A
donation of an interest in real property to the agency is not effective until the agency
executes a certificate of acceptance. The state is not liable under this chapter solely as a
result of acquiring an interest in real property under this clause. Agency approval of an
environmental covenant under chapter 114E is sufficient evidence of acceptance of an
interest in real property when the agency is expressly identified as a holder in the covenant.
Acquisition of all properties real property under this clause, except environmental
covenants under chapter 114E, is subject to approval by the board.
(b) Except as provided in paragraph (c), money in the fund is appropriated to the
board to make reimbursements or payments under this section.
(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
to the commissioner of employment and economic development for contamination cleanup
grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
$6,200,000 is annually appropriated from the fund to the commissioner of employment
and economic development for contamination cleanup grants under section 116J.554. Of
this amount, the commissioner may spend up to $225,000 annually for administration
of the contamination cleanup grant program. The appropriation does not cancel and is
available until expended. The appropriation shall not be withdrawn from the fund nor the
fund balance reduced until the funds are requested by the commissioner of employment
and economic development. The commissioner shall schedule requests for withdrawals
from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
Unless otherwise provided, the appropriation in this paragraph may be used for:
(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
to petroleum contamination or new and used tar and tar-like substances, including but not
limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
fractions, or residues from the processing of petroleum crude or petroleum products as
defined in section 296A.01; and
(2) the costs of performing contamination investigation if there is a reasonable basis
to suspect the contamination is attributable to petroleum or new and used tar and tar-like
substances, including but not limited to bitumen and asphalt, but excluding bituminous or
asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
in the earth or are distillates, fractions, or residues from the processing of petroleum crude
or petroleum products as defined in section 296A.01.

    Sec. 8. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
to read:
    Subd. 6. Disposition of property acquired for corrective action. (a) If the
commissioner determines that real or personal property acquired by the agency for a
corrective action is no longer needed for corrective action purposes, the commissioner may:
(1) request the commissioner of administration to dispose of the property according
to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
Control Agency determines necessary to protect the public health and welfare and the
environment or to comply with federal law;
(2) transfer the property to another state agency, a political subdivision, or a special
purpose district as provided in paragraph (b); or
(3) if required by federal law, take actions and dispose of the property according
to federal law.
(b) If the commissioner determines that real or personal property acquired by
the agency for a corrective action must be operated, maintained, or monitored after
completion of other phases of the corrective action, the commissioner may transfer
ownership of the property to another state agency, a political subdivision, or a special
purpose district that agrees to accept the property. A state agency, political subdivision,
or special purpose district may accept and implement terms and conditions of a transfer
under this paragraph. The commissioner may set terms and conditions for the transfer
that the commissioner considers reasonable and necessary to ensure proper operation,
maintenance, and monitoring of corrective actions; protect the public health and welfare
and the environment; and comply with applicable federal and state laws and regulations.
The state agency, political subdivision, or special purpose district to which the property is
transferred is not liable under this chapter solely as a result of acquiring the property or
acting in accordance with the terms and conditions of transfer.
(c) The proceeds of a sale or other transfer of property under this subdivision
by the commissioner or by the commissioner of administration shall be deposited in
the petroleum tank fund or other appropriate fund. Any share of the proceeds that the
agency is required by federal law or regulation to reimburse to the federal government is
appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1,
does not apply to real property that is sold by the commissioner of administration and that
was acquired under subdivision 4, clause (11).

    Sec. 9. Minnesota Statutes 2012, section 115D.10, is amended to read:
115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
The commissioner, in cooperation with the commission, shall report to
the Environment and Natural Resources Committees of the senate and house of
representatives, the Finance Division of the senate Committee on Environment and
Natural Resources, and the house of representatives Committee on Environment and
Natural Resources Finance on progress being made in achieving the objectives of sections
115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
year done in conjunction with the report required under section 115A.121.

    Sec. 10. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
knows contains an underground or aboveground storage tank or contained an underground
or aboveground storage tank that had a release for which no corrective action was taken or
if required by the agency as a condition of a corrective action under chapter 115C, the
owner shall record with the county recorder or registrar of titles of the county in which the
property is located an affidavit containing:
(1) a legal description of the property where the tank is located;
(2) a description of the tank, of the location of the tank, and of any known release
from the tank of a regulated substance to the full extent known or reasonably ascertainable;
(3) a description of any restrictions currently in force on the use of the property
resulting from any release; and
(4) the name of the owner.
(b) The county recorder shall record the affidavits in a manner that will insure
their disclosure in the ordinary course of a title search of the subject property. Before
transferring ownership of property that the owner knows contains an underground or
aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
and any additional information necessary to make the facts in the affidavit accurate as of
the date of transfer of ownership.
(c) Failure to record an affidavit as provided in this subdivision does not affect or
prevent any transfer of ownership of the property.

    Sec. 11. Minnesota Statutes 2012, section 473.846, is amended to read:
473.846 REPORTS REPORT TO LEGISLATURE.
The agency shall submit to the senate and house of representatives committees
having jurisdiction over environment and natural resources separate reports a report
describing the activities for which money for landfill abatement has been spent under
sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
included in the report required by section 115A.411, and shall include recommendations
on the future management and use of the metropolitan landfill abatement account. By
December 31 of each year, the commissioner shall submit the report for section 473.845
on contingency action trust fund activities.

    Sec. 12. REPEALER.
Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and 5; 7021.0020; 7021.0030;
7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330;
9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and 9220.0530, subpart 6, are
repealed.

ARTICLE 2

SANITARY DISTRICTS

    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
    For the purposes of property taxation and property tax state aids, the term "special
taxing districts" includes the following entities:
    (1) watershed districts under chapter 103D;
    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
    (4) regional public library districts under section 134.201;
    (5) park districts under chapter 398;
    (6) regional railroad authorities under chapter 398A;
    (7) hospital districts under sections 447.31 to 447.38;
    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
    (10) regional development commissions under sections 462.381 to 462.398;
    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
    (12) port authorities under sections 469.048 to 469.068;
    (13) economic development authorities under sections 469.090 to 469.1081;
    (14) Metropolitan Council under sections 473.123 to 473.549;
    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
    (17) Morrison County Rural Development Financing Authority under Laws 1982,
chapter 437, section 1;
    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
sections 1 to 6;
    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
5, section 39;
    (21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;
    (22) emergency medical services special taxing districts under section 144F.01;
    (23) a county levying under the authority of section 103B.241, 103B.245, or
103B.251 ;
    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;
    (25) an airport authority created under section 360.0426; and
    (26) any other political subdivision of the state of Minnesota, excluding counties,
school districts, cities, and towns, that has the power to adopt and certify a property tax
levy to the county auditor, as determined by the commissioner of revenue.

    Sec. 2. [442A.01] DEFINITIONS.
    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
in this section have the meanings given.
    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
the chief administrative law judge of the Office of Administrative Hearings or the delegate
of the chief administrative law judge under section 14.48.
    Subd. 3. District. "District" means a sanitary district created under this chapter or
under Minnesota Statutes 2012, sections 115.18 to 115.37.
    Subd. 4. Municipality. "Municipality" means a city, however organized.
    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
beneficial owner of land whose interest is primarily one of possession and enjoyment.
Property owner includes, but is not limited to, vendees under a contract for deed and
mortgagors. Any reference to a percentage of property owners means in number.
    Subd. 6. Related governing body. "Related governing body" means the governing
body of a related governmental subdivision and, in the case of an organized town, means
the town board.
    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
means a municipality or organized town wherein there is a territorial unit of a district or, in
the case of an unorganized area, the county.
    Subd. 8. Statutory city. "Statutory city" means a city organized as provided by
chapter 412, under the plan other than optional.
    Subd. 9. Territorial unit. "Territorial unit" means all that part of a district situated
within a single municipality, within a single organized town outside of a municipality, or,
in the case of an unorganized area, within a single county.

    Sec. 3. [442A.015] APPLICABILITY.
All new sanitary district formations proposed and all sanitary districts previously
formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
chapter, including annexations to, detachments from, and resolutions of sanitary districts
previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
    Subdivision 1. Duty of chief administrative law judge. The chief administrative
law judge shall conduct proceedings, make determinations, and issue orders for the
creation of a sanitary district formed under this chapter or the annexation, detachment,
or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
sections 115.18 to 115.37.
    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
order the consolidation of separate proceedings in the interest of economy and expedience.
    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
with regional, state, county, or local planning commissions and hire expert consultants to
provide specialized information and assistance.
    Subd. 4. Powers of conductor of proceedings. Any person conducting a
proceeding under this chapter may administer oaths and affirmations; receive testimony
of witnesses, and the production of papers, books, and documents; examine witnesses;
and receive and report evidence. Upon the written request of a presiding administrative
law judge or a party, the chief administrative law judge may issue a subpoena for the
attendance of a witness or the production of books, papers, records, or other documents
material to any proceeding under this chapter. The subpoena is enforceable through the
district court in the district in which the subpoena is issued.
    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
rules that are reasonably necessary to carry out the duties and powers imposed upon the
chief administrative law judge under this chapter. The chief administrative law judge may
initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
chief administrative law judge may adopt rules establishing fees.
    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
by rule a schedule of filing fees for any petitions filed under this chapter.
    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
administrative law judge to cause a transcript of the hearing to be made. Any party
requesting a copy of the transcript is responsible for its costs.
    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
the chief administrative law judge or conductor of the proceeding may at any time in the
process require representatives from any petitioner, property owner, or involved city, town,
county, political subdivision, or other governmental entity to meet together to discuss
resolution of issues raised by the petition or order that confers jurisdiction on the chief
administrative law judge and other issues of mutual concern. The chief administrative
law judge or conductor of the proceeding may determine which entities are required
to participate in these discussions. The chief administrative law judge or conductor of
the proceeding may require that the parties meet at least three times during a 60-day
period. The parties shall designate a person to report to the chief administrative law
judge or conductor of the proceeding on the results of the meetings immediately after the
last meeting. The parties may be granted additional time at the discretion of the chief
administrative law judge or conductor of the proceedings.
(b) Any proposed resolution or settlement of contested issues that results in a
sanitary district formation, annexation, detachment, or dissolution; places conditions on
any future sanitary district formation, annexation, detachment, or dissolution; or results in
the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
proceeding must be filed with the chief administrative law judge and is subject to the
applicable procedures and statutory criteria of this chapter.
    Subd. 9. Data from state agencies. The chief administrative law judge may
request boundary-related information that is otherwise classified as public data from any
state department or agency to assist in carrying out the chief administrative law judge's
duties under this chapter. The department or agency shall promptly furnish the requested
information.
    Subd. 10. Permanent official record. The chief administrative law judge shall
provide information about sanitary district creations, annexations, detachments, and
dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
Agency is responsible for maintaining the official record, including all documentation
related to the processes.
    Subd. 11. Shared program costs and fee revenue. The chief administrative
law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
transferred from the Minnesota Pollution Control Agency to the chief administrative law
judge to pay for administration of this chapter, including publication and notification costs.
Sanitary district fees collected by the chief administrative law judge shall be deposited in
the environmental fund.
EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
Any party initiating a sanitary district proceeding that includes platted land shall file
with the chief administrative law judge maps which are necessary to support and identify
the land description. The maps shall include copies of plats.

    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
under this chapter for any territory embracing an area or a group of two or more adjacent
areas, whether contiguous or separate, but not situated entirely within the limits of a
single municipality. The proposed sanitary district must promote the public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment
of these purposes; that these purposes can be effectively accomplished on an equitable
basis by a district if created; and that the creation and maintenance of a district will be
administratively feasible and in furtherance of the public health, safety, and welfare, the
chief administrative law judge shall make an order creating the sanitary district. A sanitary
district is administratively feasible under this section if the district has the financial and
managerial resources needed to deliver adequate and efficient sanitary sewer services
within the proposed district.
(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
boundary of any city of the first class without the approval of the governing body thereof
and the approval of the governing body of each and every municipality in the proposed
district by resolution filed with the chief administrative law judge.
(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need to create a sanitary district, they must determine whether not allowing
the sanitary district formation will have a detrimental effect on the environment. If it is
determined that the sanitary district formation will prevent environmental harm, the sanitary
district creation or connection to an existing wastewater treatment system must occur.
    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
of a district may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for creation of the proposed district;
(2) the name proposed for the district, to include the words "sanitary district";
(3) a legal description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the proposed district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(5) a statement showing the existence in the territory of the conditions requisite for
creation of a district as prescribed in subdivision 1;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed creation of the district. At the meeting, information must be provided, including
a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
charges and a description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territory of the proposed district or, if there is no qualified newspaper published
within the territory, in a qualified newspaper of general circulation in the territory, and
must be posted for two weeks in each territorial unit of the proposed district and on the
Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the proposed district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with a copy
of the resolution from the newspaper attached; and the affidavit of resolution posting
on the town or proposed district Web site.
(c) Every petition must be signed as follows:
(1) for each municipality wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the municipal governing body;
(2) for each organized town wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the town board;
(3) for each county wherein there is a territorial unit of the proposed district consisting
of an unorganized area, by an authorized officer pursuant to a resolution of the county
board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed district, equal in number to five percent of the number
of electors voting at the last preceding election of the governing body, requesting a
referendum on the resolution, in which case the resolution may not become effective until
approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may
be made to correct or remedy any error or defect in signature or otherwise except a
material error or defect in the description of the territory of the proposed district. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
and the record of the public meeting required under subdivision 2, the chief administrative
law judge shall publish a notice of intent to create the proposed sanitary district in the State
Register and mail or e-mail information of that publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district proposers are responsible for paying all
costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (a);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based on the factors in paragraph (a), the chief administrative law judge may
order the sanitary district creation on finding that:
(1) the proposed district is administratively feasible;
(2) the proposed district provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the proposed district were provided notice of the
proposed district and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district creation.
(c) The chief administrative law judge may alter the boundaries of the proposed
sanitary district by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed district so as to follow visible,
clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district creation if the area,
or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for the
creation of a district exist in the territory described in the petition. If the chief administrative
law judge finds that the conditions exist, the judge may make an order creating a district
for the territory described in that petition under the name proposed in the petition or such
other name, including the words "sanitary district," as the judge deems appropriate.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the creation of
a district in the territory described in the petition is not warranted, the judge shall make
an order denying the petition. The chief administrative law judge shall give notice of the
denial by mail or e-mail to each signer of the petition. No petition for the creation of a
district consisting of the same territory shall be entertained within a year after the date of
an order under this subdivision. Nothing in this subdivision precludes action on a petition
for the creation of a district embracing part of the territory with or without other territory.
    Subd. 8. Notice of order creating sanitary district. The chief administrative law
judge shall publish a notice in the State Register of the final order creating a sanitary
district, referring to the date of the order and describing the territory of the district, and
shall mail or e-mail information of the publication to each property owner in the affected
territory at the owner's address as given by the county auditor. The information must state
the date that the notice will appear in the State Register and give the Web site location
for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the creation of the district is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district is situated
and to the secretary of the district board when elected.

    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
this chapter for any area adjacent to an existing district upon a petition to the chief
administrative law judge stating the grounds therefor as provided in this section.
(b) The proposed annexation area must embrace an area or a group of two or more
adjacent areas, whether contiguous or separate, but not situated entirely within the limits
of a single municipality. The proposed annexation must promote public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment of
these purposes, that these purposes can be effectively accomplished on an equitable basis
by annexation to a district, and that the creation and maintenance of such annexation will
be administratively feasible and in furtherance of the public health, safety, and welfare,
the chief administrative law judge shall make an order for sanitary district annexation.
A sanitary district is administratively feasible under this section if the district has the
financial and managerial resources needed to deliver adequate and efficient sanitary sewer
services within the proposed district.
(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
within 25 miles of the boundary of any city of the first class without the approval
of the governing body thereof and the approval of the governing body of each and
every municipality in the proposed annexation area by resolution filed with the chief
administrative law judge.
(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need for a sanitary district annexation, they must determine whether not
allowing the sanitary district annexation will have a detrimental effect on the environment.
If it is determined that the sanitary district annexation will prevent environmental harm,
the sanitary district annexation or connection to an existing wastewater treatment system
must occur.
    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
annexation may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed annexation to a sanitary district;
(2) a legal description of the territory of the proposed annexation, including
justification for inclusion or exclusion for all parcels;
(3) addresses of every property owner within the existing sanitary district and
proposed annexation area boundaries as provided by the county auditor, with certification
from the county auditor; two sets of address labels for said owners; and a list of e-mail
addresses for said owners, if available;
(4) a statement showing the existence in such territory of the conditions requisite
for annexation to a district as prescribed in subdivision 1;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed annexation to a sanitary district. At the meeting, information must be provided,
including a description of the existing sanitary district's structure, bylaws, territory,
ordinances, budget, and charges; a description of the existing sanitary district's territory;
and a description of the territory of the proposed annexation area, including justification
for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
must be published for two successive weeks in a qualified newspaper, as defined under
chapter 331A, published within the territories of the existing sanitary district and proposed
annexation area or, if there is no qualified newspaper published within those territories, in
a qualified newspaper of general circulation in the territories, and must be posted for two
weeks in each territorial unit of the existing sanitary district and proposed annexation area
and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
billing addresses for all parcels included in the existing sanitary district and proposed
annexation area. The following must be submitted to the chief administrative law judge
with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of the public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed annexation
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
annexation area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed annexation area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed annexation area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed annexation area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
of a petition and the record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district annexation
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district annexation;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or annexation area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (b);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
annexation to the sanitary district on finding that:
(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
services to ratepayers and has provided quality service in a fair and cost-effective manner;
(2) the proposed annexation provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the existing sanitary district and proposed annexation
area were provided notice of the proposed district and opportunity to comment on the
petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district annexation.
(c) The chief administrative law judge may alter the boundaries of the proposed
annexation area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed annexation area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district annexation if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district annexation exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district annexation for the territory described in the petition.
(b) All taxable property within the annexed area shall be subject to taxation for
any existing bonded indebtedness or other indebtedness of the district for the cost of
acquisition, construction, or improvement of any disposal system or other works or
facilities beneficial to the annexed area to such extent as the chief administrative law judge
may determine to be just and equitable, to be specified in the order for annexation. The
proper officers shall levy further taxes on such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district annexation in the territory described in the petition is not warranted, the judge shall
make an order denying the petition. The chief administrative law judge shall give notice
of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
district annexation consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a sanitary district annexation embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary district
annexation, referring to the date of the order and describing the territory of the annexation
area, and shall mail or e-mail information of the publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for annexation to the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly annexed area, is situated and to the secretary of the district board.

    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
chapter for any area within an existing district upon a petition to the chief administrative
law judge stating the grounds therefor as provided in this section.
(b) The proposed detachment must not have any negative environmental impact
on the proposed detachment area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need for a sanitary district detachment, they must determine
whether not allowing the sanitary district detachment will have a detrimental effect on
the environment. If it is determined that the sanitary district detachment will cause
environmental harm, the sanitary district detachment is not allowed unless the detached
area is immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
detachment may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed detachment from a sanitary district;
(2) a statement that the requisite conditions for inclusion in a district no longer exist
in the proposed detachment area;
(3) a legal description of the territory of the proposed detachment, including
justification for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the sanitary district and proposed
detachment area boundaries as provided by the county auditor, with certification from the
county auditor; two sets of address labels for said owners; and a list of e-mail addresses
for said owners, if available;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of
the proposed detachment from a sanitary district. At the meeting, information must be
provided, including a description of the existing district's territory and a description of the
territory of the proposed detachment area, including justification for inclusion or exclusion
for all parcels for the detachment area. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territories of the existing sanitary district and proposed detachment area or, if
there is no qualified newspaper published within those territories, in a qualified newspaper
of general circulation in the territories, and must be posted for two weeks in each territorial
unit of the existing sanitary district and proposed detachment area and on the Web site
of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the sanitary district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed detachment
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
detachment area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed detachment area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said period
there shall be filed with the governing body a petition signed by qualified electors of a
territorial unit of the proposed detachment area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed detachment area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be detached from a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
of a petition and record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district detachment
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district detachment;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or detachment area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed detachment area;
(2) alternatives for managing the public health impacts for the proposed detachment
area;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
detachment from the sanitary district on finding that:
(1) the proposed detachment area has adequate alternatives for managing public
health impacts due to the detachment;
(2) the proposed detachment area is not necessary for the district to provide a
long-term, equitable solution to pollution problems affecting public health, safety, and
welfare;
(3) property owners within the existing sanitary district and proposed detachment
area were provided notice of the proposed detachment and opportunity to comment on
the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district detachment.
(c) The chief administrative law judge may alter the boundaries of the proposed
detachment area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed detachment area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district detachment if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district detachment exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district detachment for the territory described in the petition.
(b) All taxable property within the detached area shall remain subject to taxation
for any existing bonded indebtedness of the district to such extent as it would have been
subject thereto if not detached and shall also remain subject to taxation for any other
existing indebtedness of the district incurred for any purpose beneficial to such area to
such extent as the chief administrative law judge may determine to be just and equitable,
to be specified in the order for detachment. The proper officers shall levy further taxes on
such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district detachment in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for a
detachment from a district consisting of the same territory shall be entertained within a
year after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a detachment from a district embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district detachment. The chief
administrative law judge shall publish in the State Register a notice of the final order
for sanitary district detachment, referring to the date of the order and describing the
territory of the detached area and shall mail or e-mail information of the publication
to each property owner in the affected territory at the owner's address as given by the
county auditor. The information must state the date that the notice will appear in the State
Register and give the Web site location for the State Register. The notice must:
(1) describe the petition for detachment from the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary of
state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly detached area, is situated and to the secretary of the district board.

    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
this chapter upon a petition to the chief administrative law judge stating the grounds
therefor as provided in this section.
(b) The proposed dissolution must not have any negative environmental impact on
the existing sanitary district area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need to dissolve a sanitary district, they must determine whether
not dissolving the sanitary district will have a detrimental effect on the environment. If
it is determined that the sanitary district dissolution will cause environmental harm, the
sanitary district dissolution is not allowed unless the existing sanitary district area is
immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
dissolution may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed sanitary district dissolution;
(2) a statement that the requisite conditions for a sanitary district no longer exist
in the district area;
(3) a proposal for distribution of the remaining funds of the district, if any, among
the related governmental subdivisions;
(4) a legal description of the territory of the proposed dissolution;
(5) addresses of every property owner within the sanitary district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed dissolution of a sanitary district. At the meeting, information must be provided,
including a description of the existing district's territory. Notice of the meeting must be
published for two successive weeks in a qualified newspaper, as defined under chapter
331A, published within the territory of the sanitary district or, if there is no qualified
newspaper published within that territory, in a qualified newspaper of general circulation
in the territory and must be posted for two weeks in each territorial unit of the sanitary
district and on the Web site of the existing sanitary district, if one exists. Notice of the
meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
tax billing addresses for all parcels included in the sanitary district. The following must be
submitted to the chief administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the existing sanitary district
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing body
adopting it and becomes effective 40 days after publication, unless within said period there
shall be filed with the governing body a petition signed by qualified electors of a territorial
unit of the district, equal in number to five percent of the number of electors voting at the
last preceding election of the governing body, requesting a referendum on the resolution,
in which case the resolution may not become effective until approved by a majority of the
qualified electors voting at a regular election or special election that the governing body
may call. The notice of an election and the ballot to be used must contain the text of the
resolution followed by the question: "Shall the above resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed dissolution area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
of a petition and record of the public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent of sanitary district dissolution
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district dissolution;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district dissolution proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed dissolution;
(2) alternatives for managing the public health impacts for the proposed dissolution;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
dissolution of the sanitary district on finding that:
(1) the proposed dissolution area has adequate alternatives for managing public
health impacts due to the dissolution;
(2) the sanitary district is not necessary to provide a long-term, equitable solution to
pollution problems affecting public health, safety, and welfare;
(3) property owners within the sanitary district were provided notice of the proposed
dissolution and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district dissolution.
(c) The chief administrative law judge may alter the boundaries of the proposed
dissolution area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed dissolution area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district dissolution if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district dissolution exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district dissolution for the territory described in the petition.
(b) If the chief administrative law judge determines that the conditions requisite for
the creation of the district no longer exist therein, that all indebtedness of the district has
been paid, and that all property of the district except funds has been disposed of, the judge
may make an order dissolving the district and directing the distribution of its remaining
funds, if any, among the related governmental subdivisions on such basis as the chief
administrative law judge determines to be just and equitable, to be specified in the order.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district dissolution in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for the
dissolution of a district consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision.
    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary
district dissolution, referring to the date of the order and describing the territory of the
dissolved district and shall mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location of the State Register. The notice must:
(1) describe the petition for dissolution of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
the chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the dissolved district
is situated and to the secretary of the district board.
(b) The chief administrative law judge shall also transmit a certified copy of the order
to the treasurer of the district, who must thereupon distribute the remaining funds of the
district as directed by the order and who is responsible for the funds until so distributed.

    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
There must be a joint public informational meeting of the local governments of any
proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
informational meeting must be held after the final mediation meeting or the final meeting
held according to section 442A.02, subdivision 8, if any, and before the hearing on the
matter is held. If no mediation meetings are held, the joint public informational meeting
must be held after the initiating documents have been filed and before the hearing on the
matter. The time, date, and place of the public informational meeting must be determined
jointly by the local governments in the proposed creation, annexation, detachment, or
dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
if one exists, and the responsible official for one of the local governments represented at
the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
date, place, and purpose of the informational meeting must be posted by the sanitary
district, if one exists, and local governments in designated places for posting notices. The
sanitary district, if one exists, and represented local governments must also publish, at their
own expense, notice in their respective official newspapers. If the same official newspaper
is used by multiple local government representatives or the sanitary district, a joint notice
may be published and the costs evenly divided. All notice required by this section must
be provided at least ten days before the date for the public informational meeting. At the
public informational meeting, all persons appearing must have an opportunity to be heard,
but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
speaker. The sanitary district board, the local government representatives, and any resident
or affected property owner may be represented by counsel and may place into the record of
the informational meeting documents, expert opinions, or other materials supporting their
positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
if one exists, or a person appointed by the chair must record minutes of the proceedings of
the informational meeting and must make an audio recording of the informational meeting.
The sanitary district, if one exists, or a person appointed by the chair must provide the
chief administrative law judge and the represented local governments with a copy of the
printed minutes and must provide the chief administrative law judge and the represented
local governments with a copy of the audio recording. The record of the informational
meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
admissible in any proceeding under this chapter and shall be taken into consideration by
the chief administrative law judge or the chief administrative law judge's designee.

    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
AGENCY.
    Subdivision 1. Annexation by ordinance alternative. If a determination or order
by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
made that cooperation by contract is necessary and feasible between a sanitary district and
an unincorporated area located outside the existing corporate limits of the sanitary district,
the sanitary district required to provide or extend through a contract a governmental
service to an unincorporated area, during the statutory 90-day period provided in section
115.49 to formulate a contract, may in the alternative to formulating a service contract to
provide or extend the service, declare the unincorporated area described in the Minnesota
Pollution Control Agency's determination letter or order annexed to the sanitary district by
adopting an ordinance and submitting it to the chief administrative law judge.
    Subd. 2. Chief administrative law judge's role. The chief administrative law
judge may review and comment on the ordinance but shall approve the ordinance within
30 days of receipt. The ordinance is final and the annexation is effective on the date the
chief administrative law judge approves the ordinance.

    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
Expenses of the preparation and submission of petitions in the proceedings under
sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
16A.1283, the Office of Administrative Hearings may adopt rules according to section
14.386 to establish fees necessary to support the preparation and submission of petitions
in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
Administrative Hearings shall be deposited in the environmental fund.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
shall be issued within one year from the date of the first hearing thereon, provided that
the time may be extended for a fixed additional period upon consent of all parties of
record. Failure to so order shall be deemed to be an order denying the matter. An appeal
may be taken from such failure to so order in the same manner as an appeal from an
order as provided in subdivision 2.
    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
this chapter may appeal to the district court upon the following grounds:
(1) the order was issued without jurisdiction to act;
(2) the order exceeded the jurisdiction of the presiding administrative law judge;
(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
disregard of the best interests of the territory affected; or
(4) the order was based upon an erroneous theory of law.
(b) The appeal must be taken in the district court in the county in which the majority
of the area affected is located. The appeal does not stay the effect of the order. All notices
and other documents must be served on both the chief administrative law judge and the
attorney general's assistant assigned to the chief administrative law judge for purposes
of this chapter.
(c) If the court determines that the action involved is unlawful or unreasonable or is
not warranted by the evidence in case an issue of fact is involved, the court may vacate or
suspend the action involved, in whole or in part, as the case requires. The matter shall then
be remanded for further action in conformity with the decision of the court.
(d) To render a review of an order effectual, the aggrieved person shall file with the
court administrator of the district court of the county in which the majority of the area is
located, within 30 days of the order, an application for review together with the grounds
upon which the review is sought.
(e) An appeal lies from the district court as in other civil cases.

    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
FROM DISTRICT COURT.
An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
administrative law judge from a final order or judgment made or rendered by the district
court when the chief administrative law judge determines that the final order or judgment
adversely affects the public interest.

    Sec. 15. [442A.13] UNIFORM PROCEDURES.
    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
document or by the chief administrative law judge shall come on for hearing within 30 to
60 days from receipt of the document by the chief administrative law judge or from the
date of the chief administrative law judge's action and the person conducting the hearing
must submit an order no later than one year from the date of the first hearing.
(b) The place of the hearing shall be in the county where a majority of the affected
territory is situated, and shall be established for the convenience of the parties.
(c) The chief administrative law judge shall mail notice of the hearing to the
following parties: the sanitary district; any township or municipality presently governing
the affected territory; any township or municipality abutting the affected territory;
the county where the affected territory is situated; and each planning agency that has
jurisdiction over the affected area.
(d) The chief administrative law judge shall see that notice of the hearing is published
for two successive weeks in a legal newspaper of general circulation in the affected area.
(e) When the chief administrative law judge exercises authority to change the
boundaries of the affected area so as to increase the quantity of land, the hearing shall
be recessed and reconvened upon two weeks' published notice in a legal newspaper of
general circulation in the affected area.
    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
copies of the order are mailed to all parties entitled to mailed notice of hearing under
subdivision 1, individual property owners if initiated in that manner, and any other party
of record.

    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
    Subdivision 1. Composition. The governing body of each district shall be a board
of managers of five members, who shall be voters residing in the district and who may
but need not be officers, members of governing bodies, or employees of the related
governmental subdivisions, except that when there are more than five territorial units in
a district, there must be one board member for each unit.
    Subd. 2. Terms. The terms of the first board members elected after creation of a
district shall be so arranged and determined by the electing body as to expire on the first
business day in January as follows:
(1) the terms of two members in the second calendar year after the year in which
they were elected;
(2) the terms of two other members in the third calendar year after the year in which
they were elected; and
(3) the term of the remaining member in the fourth calendar year after the year in
which the member was elected. In case a board has more than five members, the additional
members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
far as practicable. Thereafter, board members shall be elected successively for regular
terms beginning upon expiration of the preceding terms and expiring on the first business
day in January of the third calendar year thereafter. Each board member serves until
a successor is elected and has qualified.
    Subd. 3. Election of board. In a district having only one territorial unit, all the
members of the board shall be elected by the related governing body. In a district having
more than one territorial unit, the members of the board shall be elected by the members
of the related governing bodies in joint session except as otherwise provided. The electing
bodies concerned shall meet and elect the first board members of a new district as soon
as practicable after creation of the district and shall meet and elect board members for
succeeding regular terms as soon as practicable after November 1 next preceding the
beginning of the terms to be filled, respectively.
    Subd. 4. Central related governing body. Upon the creation of a district
having more than one territorial unit, the chief administrative law judge, on the basis of
convenience for joint meeting purposes, shall designate one of the related governing
bodies as the central related governing body in the order creating the district or in a
subsequent special order, of which the chief administrative law judge shall notify the
clerks or recorders of all the related governing bodies. Upon receipt of the notification,
the clerk or recorder of the central related governing body shall immediately transmit the
notification to the presiding officer of the body. The officer shall thereupon call a joint
meeting of the members of all the related governing bodies to elect board members, to
be held at such time as the officer shall fix at the regular meeting place of the officer's
governing body or at such other place in the district as the officer shall determine. The
clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
the clerks or recorders of all the other related governing bodies, who shall immediately
transmit the notice to all the members of the related governing bodies, respectively.
Subsequent joint meetings to elect board members for regular terms must be called and
held in like manner. The presiding officer and the clerk or recorder of the central related
governing body shall act respectively as chair and secretary of the joint electing body at
any meeting thereof, but in case of the absence or disability of either of them, the body
may elect a temporary substitute. A majority of the members of each related governing
body is required for a quorum at any meeting of the joint electing body.
    Subd. 5. Nominations. Nominations for board members may be made by petitions,
each signed by ten or more voters residing and owning land in the district, filed with the
clerk, recorder, or secretary of the electing body before the election meeting. No person
shall sign more than one petition. The electing body shall give due consideration to all
nominations but is not limited thereto.
    Subd. 6. Election; single governing body. In the case of an electing body
consisting of a single related governing body, a majority vote of all members is required
for an election. In the case of a joint electing body, a majority vote of members present is
required for an election. In case of lack of a quorum or failure to elect, a meeting of an
electing body may be adjourned to a stated time and place without further notice.
    Subd. 7. Election; multiple governing bodies. In any district having more than
one territorial unit, the related governing bodies, instead of meeting in joint session, may
elect a board member by resolutions adopted by all of them separately, concurring in the
election of the same person. A majority vote of all members of each related governing
body is required for the adoption of any such resolution. The clerks or recorders of the
other related governing bodies shall transmit certified copies of the resolutions to the clerk
or recorder of the central related governing body. Upon receipt of concurring resolutions
from all the related governing bodies, the presiding officer and clerk or recorder of the
central related governing body shall certify the results and furnish certificates of election
as provided for a joint meeting.
    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
the unexpired term in like manner as provided for the regular election of board members.
    Subd. 9. Certification of election; temporary chair. The presiding and recording
officers of the electing body shall certify the results of each election to the county auditor
of each county wherein any part of the district is situated and to the clerk or recorder of
each related governing body and shall make and transmit to each board member elected
a certificate of the board member's election. Upon electing the first board members of a
district, the presiding officer of the electing body shall designate a member to serve as
temporary chair for purposes of initial organization of the board, and the recording
officer of the body shall include written notice thereof to all the board members with
their certificates of election.

    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
of the first board members of a district, the board shall meet at the call of the temporary
chair to elect officers and take other appropriate action for organization and administration
of the district. Each board shall hold a regular annual meeting at the call of the chair or
otherwise as the board prescribes on or as soon as practicable after the first business day in
January of each year and such other regular and special meetings as the board prescribes.
    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
who shall be members of the board, and a secretary and a treasurer, who may but need
not be members of the board. The board of a new district at its initial meeting or as soon
thereafter as practicable shall elect the officers to serve until the first business day in
January next following. Thereafter, the board shall elect the officers at each regular annual
meeting for terms expiring on the first business day in January next following. Each
officer serves until a successor is elected and has qualified.
    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
thereafter as practicable shall provide for suitable places for board meetings and for offices
of the district officers and may change the same thereafter as the board deems advisable.
The meeting place and offices may be the same as those of any related governing body,
with the approval of the body. The secretary of the board shall notify the secretary of state,
the county auditor of each county wherein any part of the district is situated, and the clerk
or recorder of each related governing body of the locations and post office addresses of the
meeting place and offices and any changes therein.
    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
become available, the district board may prepare a budget comprising an estimate of the
expenses of organizing and administering the district until the proceeds are available, with
a proposal for apportionment of the estimated amount among the related governmental
subdivisions, and may request the governing bodies thereof to advance funds according to
the proposal. The governing bodies may authorize advancement of the requested amounts,
or such part thereof as they respectively deem proper, from any funds available in their
respective treasuries. The board shall include in its first tax levy after receipt of any such
advancements a sufficient sum to cover the same and shall cause the same to be repaid,
without interest, from the proceeds of taxes as soon as received.

    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
    Subdivision 1. Status. Every district shall be a public corporation and a governmental
subdivision of the state and shall be deemed to be a municipality or municipal corporation
for the purpose of obtaining federal or state grants or loans or otherwise complying with
any provision of federal or state law or for any other purpose relating to the powers and
purposes of the district for which such status is now or hereafter required by law.
    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
prescribed by this chapter and such others as may now or hereafter be prescribed by law.
No express grant of power or enumeration of powers herein shall be deemed to limit the
generality or scope of any grant of power.
    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
duty vested in or imposed upon a district or any of its officers, agents, or employees shall
not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
imposed upon any other agency of the state or any governmental subdivision thereof, but
shall be supplementary thereto.
    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
board of managers except so far as approval of any action by popular vote or by any other
authority may be expressly required by law.
    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
any contract necessary or proper for the exercise of its powers or the accomplishment
of its purposes.
    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
condemnation or may lease or rent any real or personal property within or without the
district that may be necessary for the exercise of district powers or the accomplishment of
district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
otherwise dispose of any property not needed for such purposes.
    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
or loans of money or other property from the United States, the state, or any person,
corporation, or other entity for district purposes; may enter into any agreement required in
connection therewith; and may hold, use, and dispose of the money or property according
to the terms of the gift, grant, loan, or agreement relating thereto.

    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
    Subdivision 1. Pollution prevention. A district may construct, install, improve,
maintain, and operate any system, works, or facilities within or without the district
required to control and prevent pollution of any waters of the state within its territory.
    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
and operate any system, works, or facilities within or without the district required to
provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
originating within its territory. The district may require any person upon whose premises
there is any source of sewage, industrial waste, or other waste within the district to
connect the premises with the disposal system, works, or facilities of the district whenever
reasonable opportunity therefor is provided.
    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
maintain, and operate any system, works, or facilities within or without the district required
to provide for, regulate, and control the disposal of garbage or refuse originating within the
district. The district may require any person upon whose premises any garbage or refuse is
produced or accumulated to dispose of the garbage or refuse through the system, works, or
facilities of the district whenever reasonable opportunity therefor is provided.
    Subd. 4. Water supply. A district may procure supplies of water necessary for any
purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
operate any system, works, or facilities required therefor within or without the district.
    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
systems, works, or facilities, the district may maintain and repair a road by agreement with
the entity that was responsible for the performance of maintenance and repair immediately
prior to the agreement. Maintenance and repair includes but is not limited to providing
lighting, snow removal, and grass mowing.
(b) A district shall establish a taxing subdistrict of benefited property and shall levy
special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
cost of improvement or maintenance of a road under paragraph (a).
(c) For purposes of this subdivision, a district shall not be construed as a road
authority under chapter 160.
(d) The district and its officers and employees are exempt from liability for any tort
claim for injury to person or property arising from travel on a road maintained by the
district and related to the road's maintenance or condition.

    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
    Subdivision 1. Public property. For the purpose of constructing, improving,
maintaining, or operating any system, works, or facilities designed or used for any purpose
under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
occupy, excavate, and otherwise operate in, upon, under, through, or along any public
highway, including a state trunk highway, or any street, park, or other public grounds so
far as necessary for such work, with the approval of the governing body or other authority
in charge of the public property affected and on such terms as may be agreed upon with the
governing body or authority respecting interference with public use, restoration of previous
conditions, compensation for damages, and other pertinent matters. If an agreement cannot
be reached after reasonable opportunity therefor, the district may acquire the necessary
rights, easements, or other interests in the public property by condemnation, subject to all
applicable provisions of law as in case of taking private property, upon condition that the
court shall determine that there is paramount public necessity for the acquisition.
    Subd. 2. Use of other systems. A district may, upon such terms as may be
agreed upon with the respective governing bodies or authorities concerned, provide for
connecting with or using; lease; or acquire and take over any system, works, or facilities
for any purpose under section 442A.17 belonging to any other governmental subdivision
or other public agency.
    Subd. 3. Use by other governmental bodies. A district may, upon such terms
as may be agreed upon with the respective governing bodies or authorities concerned,
authorize the use by any other governmental subdivision or other public agency of any
system, works, or facilities of the district constructed for any purpose under section
442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
district may extend any such system, works, or facilities and permit the use thereof by
persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
the district, upon such terms as the board may prescribe.
    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
undertaking, or enterprise with one or more other governmental subdivisions or other
public agencies for any purpose under section 442A.17 upon such terms as may be
agreed upon between the governing bodies or authorities concerned. Without limiting the
effect of the foregoing provision or any other provision of this chapter, a district, with
respect to any of said purposes, may act under and be subject to section 471.59, or any
other appropriate law providing for joint or cooperative action between governmental
subdivisions or other public agencies.

    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
A district may regulate and control the construction, maintenance, and use of privies,
cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
of human or animal excreta or other domestic wastes within its territory so far as necessary
to prevent nuisances or pollution or to protect the public health, safety, and welfare
and may prohibit the use of any such facilities or devices not connected with a district
disposal system, works, or facilities whenever reasonable opportunity for such connection
is provided; provided, that the authority of a district under this section does not extend
or apply to the construction, maintenance, operation, or use by any person other than the
district of any disposal system or part thereof within the district under and in accordance
with a valid and existing permit issued by the Minnesota Pollution Control Agency.

    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
A district may develop general programs and particular projects within the scope of
its powers and purposes and may make all surveys, studies, and investigations necessary
for the programs and projects.

    Sec. 23. [442A.21] GENERAL AND STATUTORY CITY POWERS.
A district may do and perform all other acts and things necessary or proper for the
effectuation of its powers and the accomplishment of its purposes. Without limiting the
effect of the foregoing provision or any other provision of this chapter, a district, with
respect to each and all of said powers and purposes, shall have like powers as are vested in
statutory cities with respect to any similar purposes. The exercise of such powers by a
district and all matters pertaining thereto are governed by the law relating to the exercise
of similar powers by statutory cities and matters pertaining thereto, so far as applicable,
with like force and effect, except as otherwise provided.

    Sec. 24. [442A.22] ADVISORY COMMITTEE.
A district board of managers may appoint an advisory committee with membership
and duties as the board prescribes.

    Sec. 25. [442A.23] BOARD POWERS.
    Subdivision 1. Generally. The board of managers of every district shall have charge
and control of all the funds, property, and affairs of the district. With respect thereto, the
board has the same powers and duties as are provided by law for a statutory city council
with respect to similar statutory city matters, except as otherwise provided. Except as
otherwise provided, the chair, vice-chair, secretary, and treasurer of the district have the
same powers and duties, respectively, as the mayor, acting mayor, clerk, and treasurer
of a statutory city. Except as otherwise provided, the exercise of the powers and the
performance of the duties of the board and officers of the district and all other activities,
transactions, and procedures of the district or any of its officers, agents, or employees,
respectively, are governed by the law relating to similar matters in a statutory city, so far
as applicable, with like force and effect.
    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
regulations, adopt resolutions, and take other appropriate action relating to any matter
within the powers and purposes of the district and may do and perform all other acts and
things necessary or proper for the effectuation of said powers and the accomplishment
of said purposes. The board may provide that violation of a district ordinance is a penal
offense and may prescribe penalties for violations, not exceeding those prescribed by law
for violation of statutory city ordinances.
    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
make arrests for violations committed anywhere within the district in the same manner as
for violations of city ordinances or for statutory misdemeanors.
(b) All fines collected shall be deposited in the treasury of the district.

    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
property taxable within the district.
    Subd. 2. Particular area. In the case where a particular area within the district,
but not the entire district, is benefited by a system, works, or facilities of the district,
the board, after holding a public hearing as provided by law for levying assessments on
benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
designated by number, and shall levy special taxes on all the taxable property therein, to be
accounted for separately and used only for the purpose of paying the cost of construction,
improvement, acquisition, maintenance, or operation of such system, works, or facilities,
or paying the principal and interest on bonds issued to provide funds therefor and expenses
incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
assessments on benefited property within the proposed taxing subdistrict.
    Subd. 3. Benefited property. The board shall levy assessments on benefited property
to provide funds for payment of the cost of construction, improvement, or acquisition of
any system, works, or facilities designed or used for any district purpose or for payment of
the principal of and interest on any bonds issued therefor and expenses incident thereto.
    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
for persons or premises connecting with or making use of any system, works, or facilities
of the district; prescribe the method of payment and collection of the charges; and provide
for the collection thereof for the district by any related governmental subdivision or
other public agency on such terms as may be agreed upon with the governing body or
other authority thereof.

    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
    Subdivision 1. Borrowing power. The board may authorize the borrowing of
money for any district purpose and provide for the repayment thereof, subject to chapter
475. The taxes initially levied by any district according to section 475.61 for the payment
of district bonds, upon property within each municipality included in the district, shall be
included in computing the levy of the municipality.
    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
obligations of the district to provide funds for the construction, improvement, or
acquisition of any system, works, or facilities for any district purpose or for refunding
any prior bonds or obligations issued for any such purpose and may pledge the full faith
and credit of the district; the proceeds of tax levies or assessments; service, use, or
rental charges; or any combination thereof to the payment of such bonds or obligations
and interest thereon or expenses incident thereto. An election or vote of the people of
the district is required to authorize the issuance of any bonds or obligations. Except as
otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
and provisions for payment thereof must comply with chapter 475.

    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
The proceeds of all tax levies, assessments, service, use, or rental charges, and
other income of the district must be deposited in the district treasury and must be held
and disposed of as the board may direct for district purposes, subject to any pledges or
dedications made by the board for the use of particular funds for the payment of bonds,
interest thereon, or expenses incident thereto or for other specific purposes.

    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
In any case where an ordinance is enacted or a regulation adopted by a district
board relating to the same subject matter and applicable in the same area as an existing
ordinance or regulation of a related governmental subdivision for the district, the district
ordinance or regulation, to the extent of its application, supersedes the ordinance or
regulation of the related governmental subdivision. In any case where an area within a
district is served for any district purpose by a system, works, or facilities of the district,
no system, works, or facilities shall be constructed, maintained, or operated for the same
purpose in the same area by any related governmental subdivision or other public agency
except as approved by the district board.

    Sec. 30. [442A.28] APPLICATION.
This chapter does not abridge or supersede any authority of the Minnesota Pollution
Control Agency or the commissioner of health, but is subject and supplementary thereto.
Districts and members of district boards are subject to the authority of the Minnesota
Pollution Control Agency and have no power or authority to abate or control pollution that
is permitted by and in accord with any classification of waters, standards of water quality,
or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
the chief administrative law judge, upon consultation with affected parties and considering
the procedures and principles established in sections 442A.01 to 442A.28, may require
that disputes over proposed sanitary district creations, attachments, detachments, or
dissolutions be addressed in whole or in part by means of alternative dispute resolution
processes in place of, or in connection with, hearings that would otherwise be required
under sections 442A.01 to 442A.28, including those provided in chapter 14.
(b) In all proceedings, the chief administrative law judge has the authority and
responsibility to conduct hearings and issue final orders related to the hearings under
sections 442A.01 to 442A.28.
    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
dispute resolution under subdivision 1 must pay the costs of the alternative dispute
resolution process or hearing in the proportions that the parties agree to.
(b) Notwithstanding section 14.53 or other law, the Office of Administrative
Hearings is not liable for the costs.
(c) If the parties do not agree to a division of the costs before the commencement of
mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
the mediator, arbitrator, or chief administrative law judge.
(d) The chief administrative law judge may contract with the parties to a matter for
the purpose of providing administrative law judges and reporters for an administrative
proceeding or alternative dispute resolution.
(e) The chief administrative law judge shall assess the cost of services rendered by
the Office of Administrative Hearings as provided by section 14.53.
    Subd. 3. Parties. In this section, "party" means:
(1) a property owner, group of property owners, sanitary district, municipality, or
township that files an initiating document or timely objection under this chapter;
(2) the sanitary district, municipality, or township within which the subject area
is located;
(3) a municipality abutting the subject area; and
(4) any other person, group of persons, or governmental agency residing in, owning
property in, or exercising jurisdiction over the subject area that submits a timely request
and is determined by the presiding administrative law judge to have a direct legal interest
that will be affected by the outcome of the proceeding.
    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
as a result of an alternative dispute resolution process, or otherwise, may be incorporated
into one or more stipulations for purposes of further proceedings according to the
applicable procedures and statutory criteria of this chapter.
    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
permit a sanitary district, municipality, town, or other political subdivision to take, or
agree to take, an action that is not otherwise authorized by this chapter.

    Sec. 32. REPEALER.
Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

    Sec. 33. EFFECTIVE DATE.
Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.