Recycling goals and distribution of state funding for solid waste purposes clarified, and provisions for establishing and operating solid waste management districts modified.

A bill for an act

relating to solid waste; clarifying recycling goals and the distribution of state

funding for solid waste purposes with respect to solid waste management districts;

modifying provisions for establishing and operating solid waste management

districts; amending Minnesota Statutes 2024, sections 115A.03, subdivision 32;

115A.551, by adding a subdivision; 115A.557, by adding a subdivision; 115A.63;

115A.65; 115A.68; 115A.69; 115A.70, subdivision 8; 115A.71; 115A.72; 115A.82;

473.8441, by adding a subdivision; proposing coding for new law in Minnesota

Statutes, chapter 115A; repealing Minnesota Statutes 2024, sections 115A.62;

115A.64, subdivisions 1, 2, 3, 5; 115A.66; 115A.67; 115A.715; Minnesota Statutes

2025 Supplement, section 115A.64, subdivisions 4, 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 115A.03, subdivision 32, is amended to read:

Subd. 32.

Solid waste management district or waste district.

"Solid waste management

district" or "waste district" means a geographic area extending into two or more counties

in which the management of solid waste is vested in a special district established
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pursuant

to sections
115A.62
to
115A.72
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under section 115A.641
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 2.

Minnesota Statutes 2024, section 115A.551, is amended by adding a subdivision

to read:

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Subd. 2b.

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Solid waste management district; recycling goal.

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The recycling goal of a

solid waste management district established under section 115A.641 is the same percentage

as the goals of the counties that compose the district, as established in subdivision 2a. If the

district is comprised of both metropolitan and nonmetropolitan counties, the districtwide

goal is the goal assigned to metropolitan counties in subdivision 2a.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 3.

Minnesota Statutes 2024, section 115A.557, is amended by adding a subdivision

to read:

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Subd. 1a.

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Solid waste management district.

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The commissioner must distribute funds

under this section to a solid waste management district established under section 115A.641

in an amount equal to the sum that would otherwise have been distributed to the individual

counties, or portions thereof, that compose the district.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 4.

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[115A.61] DEFINITIONS.

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Subdivision 1.

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Scope.

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For purposes of sections 115A.61 to 115A.73, the following terms

have the meanings given.

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Subd. 2.

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Board.

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"Board" means the board of directors governing a district.

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Subd. 3.

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District.

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"District" means a solid waste management district established under

section 115A.641.

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Subd. 4.

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Member county.

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"Member county" means a county that is wholly or partly

located within the jurisdiction of a district.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 5.

Minnesota Statutes 2024, section 115A.63, is amended to read:

115A.63 SOLID WASTE MANAGEMENT DISTRICTS.

Subdivision 1.

Legal status.

Solid waste management districts established
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pursuant to

sections
115A.62
to
115A.72
shall be
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under section 115A.641 are
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public corporations and

political subdivisions of the state.

Subd. 2.

Establishment.

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The commissioner
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Counties
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may establish
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waste
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districts as

public corporations and political subdivisions of the state,
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define the powers of such districts

in accordance with sections
115A.62
to
115A.72
,
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define and alter the boundaries of the

districts as provided in
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section
115A.64
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sections 115A.641 and 115A.643
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, and terminate

districts as provided in section
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115A.66
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115A.73
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.
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The commissioner shall promulgate rules

pursuant to chapter 14 governing the establishment, alteration, and termination of districts.
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The commissioner must assist counties in establishing districts.
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Subd. 3.

Restrictions.

No
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waste
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district
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shall
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may
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be established within the boundaries

of the Western Lake Superior Sanitary District established under chapter 458D
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. No waste

district shall be established
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or
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wholly within one county.
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The commissioner shall not establish

a waste district within or extending into the metropolitan area, nor define or alter the powers

or boundaries of a district, unless the articles of incorporation of the district require that the

district will have the same procedural and substantive responsibilities, duties, and relationship

to the metropolitan agencies as a metropolitan county. The commissioner shall require the

completion of a comprehensive solid waste management plan conforming to the requirements

of section
115A.46
, by petitioners seeking to establish a district.
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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 6.

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[115A.641] ESTABLISHING DISTRICT; PROCEDURE.

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Subdivision 1.

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Joint resolution of intent.

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A district may be proposed by a joint resolution

of intent adopted by the governing body of each proposed member county. The joint

resolution must, at a minimum:

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(1) name the proposed district;

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(2) name the proposed member counties to be included in the district and designate a

county to lead development of the joint resolution;

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(3) describe the benefits the proposed member counties hope to gain by establishing a

district;

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(4) direct the proposed member counties to jointly prepare a transition plan for the district

that satisfies the requirements of subdivision 2; and

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(5) describe the sources and amounts of funding that have been negotiated by the proposed

member counties for the cost of preparing the transition plan.

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Subd. 2.

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Transition plan contents.

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(a) Counties proposing to establish a district must

jointly prepare a draft transition plan that contains, at a minimum:

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(1) the name of the proposed district and the location of its registered office;

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(2) a description of the territory and counties wholly or partly within the boundaries of

the proposed district and a map showing the district boundaries;

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(3) resolutions of intent to establish the proposed district adopted by the governing body

of each proposed member county under subdivision 1;

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(4) evidence that each proposed member county is operating under a solid waste

management plan approved by the commissioner;

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(5) a statement describing how the proposed district will further the state's solid waste

management policies and purposes expressed in section 115A.02;

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(6) a discussion of the role county solid waste employees may play in staffing the

proposed district;

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(7) a list and description of solid waste management facilities and services operating in

the proposed district, identified as public, private, or county-owned;

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(8) for each proposed member county, a list of the following documents and a schedule

for their transfer to the district for implementation:

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(i) solid waste management plans;

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(ii) designation plans;

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(iii) solid waste management ordinances;

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(iv) state and local permits held by county-owned facilities; and

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(v) existing contracts with private parties for waste management services;

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(9) a description of how the district will ensure the continued operation of county-owned

solid waste facilities located in the proposed district and a schedule for transferring their

ownership to the district;

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(10) a list of proposed member county solid waste funding sources and finances,

remaining principal and debt service on outstanding county solid waste management bonds,

and other county financial obligations related to solid waste proposed for transfer to the

district;

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(11) a list and schedule of unified districtwide ordinances the district proposes to adopt;

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(12) draft articles of incorporation; and

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(13) any known items that remain to be agreed upon by the proposed member counties.

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(b) The commissioner must assist counties in preparing a transition plan.

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Subd. 3.

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Public hearing.

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(a) Each proposed member county must hold a public hearing

in its jurisdiction to receive public comments on the draft transition plan.

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(b) Each county must publish a notice of its public hearing in a newspaper of general

circulation in the county and must post the notice on the county's website at least 15 days

but no more than 45 days before the date of the public hearing. At the same time, the county

must mail the notice to the governing body of each city and town within the county.

new text end

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(c) In addition to comments a county receives at the public hearing, each proposed

member county must also accept comments in written or electronic form that are received

up to ten days after the date of the public hearing.

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(d) No later than 30 days after its public hearing, each member county must prepare a

final transition plan, revised as needed, and a copy of responses to comments received.

new text end

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Subd. 4.

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District establishment.

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(a) Each proposed member county must adopt a joint

resolution establishing the district, which must include:

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(1) approval of the proposed district's final transition plan;

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(2) approval of the proposed district's articles of incorporation; and

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(3) authorization to file the articles of incorporation with the secretary of state.

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(b) Each proposed member county must file a copy of the joint resolution of intent and

the articles of incorporation, certified by the county's recording officer, with the secretary

of state.

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(c) The secretary of state's issuance of a certificate of incorporation serves as conclusive

evidence of the legal organization and establishment of a district.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 7.

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[115A.642] TRANSITION.

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(a) Until the board has approved a solid waste management plan for a district, the district

must adopt and enforce the solid waste management plans and ordinances, including waste

designation plans and ordinances, operating in each member county at the time of the

district's establishment.

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new text begin

(b) By a date specified in its bylaws, a district must submit a solid waste management

plan that meets the requirements of section 115A.46 to the commissioner for approval. A

district is subject to the same provisions of sections 115A.42 to 115A.46 as are counties,

unless the district's boundaries are wholly contained within the metropolitan area, in which

case the district's solid waste management plan and its administration by the commissioner

are subject to section 473.149.

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(c) A district is responsible for administering the transfer of county solid waste plans,

ordinances, facilities, debt, and other county solid waste functions and authorities necessary

to the efficient operation of the district, including existing contracts with private vendors

that may need to be newly executed.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 8.

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[115A.643] ALTERING DISTRICT BOUNDARIES; PROCEDURE.

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(a) The board of commissioners of a county or counties proposing to alter a district's

boundaries must:

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(1) adopt a resolution stating the nature of the alteration and the expected benefits to be

realized by both the county or counties proposing the alteration and the district; and

new text end

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(2) submit to the district's board of directors a document containing all the elements

required under section 115A.641, subdivision 2, with respect to the county or counties

proposing the alteration.

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(b) After reviewing the documents submitted under paragraph (a), if the district board

approves of the alteration, it must adopt a resolution to that effect.

new text end

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(c) The district and each county proposing an alteration must hold a public hearing in

their respective jurisdictions to receive public comments on the resolution adopted under

paragraphs (a) and (b). At least 15 days but no more than 45 days before the hearing, each

existing and proposed member county must post a notice of the hearing on its website. The

board must publish notice in a newspaper of general circulation in each existing and proposed

member county and must mail notice to the governing body of each city and town within

the proposed altered district boundaries. In addition to comments received at the public

hearing, the district and each county must also accept comments in written or electronic

form that are received up to ten days after the public hearing. No later than 30 days after

the public hearing, each county must submit to the district a copy of responses to comments

received.

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(d) The district board may amend or withdraw its resolution approving the alteration

based on the public comments received by the district and from the counties.

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(e) If the district board confirms its approval of the alteration, it must amend the district's

articles of incorporation accordingly and submit both the resolution approving the alteration

and the revised articles of incorporation to the secretary of state.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 9.

Minnesota Statutes 2024, section 115A.65, is amended to read:

115A.65 PERPETUAL EXISTENCE.

A
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waste
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district
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created
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new text begin
established
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under
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the provisions of sections
115A.62
to
115A.72

shall have
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new text begin
section 115A.641 has
new text end
perpetual existence to the extent necessary to perform all

acts necessary and proper for carrying out and exercising the powers and duties expressly

given
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in
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it. A district
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shall not
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new text begin
may
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be terminated
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except pursuant to
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new text begin
only by following the

procedures of
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section
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115A.66
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new text begin
115A.73
new text end
.

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EFFECTIVE DATE.

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new text begin

This section is effective the day following final enactment.

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Sec. 10.

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[115A.661] ORGANIZATION OF DISTRICT.

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Subdivision 1.

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Board of directors.

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A district's board of directors must be comprised

entirely of elected county commissioners and have at least five members. The board of

county commissioners of each member county must appoint one or more of their members

as a board director. After each member county appoints one director, the appointment of

additional directors necessary to achieve the desired total number of directors must be made

by member counties based on their population.

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Subd. 2.

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Terms.

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The board must stagger the terms of the directors appointed initially

under subdivision 1 so that, so far as is practicable, one-third of the directors have a term

of one year, one-third have a term of two years, and one-third have a term of three years.

All directors subsequently appointed have a term of three years.

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Subd. 3.

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Vacancy.

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A board vacancy must be filled by appointment of a director by the

appropriate board of county commissioners to complete the remaining term of the director

creating the vacancy.

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Subd. 4.

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Bylaws.

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The board must approve bylaws by majority vote. The bylaws must

address, at a minimum:

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(1) the manner and time of calling regular board meetings;

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(2) the manner of removing a director;

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(3) the powers and duties of the board consistent with sections 115A.61 to 115A.73;

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(4) the definition of a quorum for board meetings, which must not be less than a majority

of directors;

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(5) compensation and reimbursement for expenses for directors, which may not exceed

that provided under section 15.0575, subdivision 3; and

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(6) other provisions regulating the affairs of the district that the board determines are

necessary.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 11.

Minnesota Statutes 2024, section 115A.68, is amended to read:

115A.68 REGISTERED OFFICE.

Every district
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shall
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must
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maintain an office
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in this state
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new text begin
located within the district
new text end
to be

known as its registered office.
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When
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A district
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desires to
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may
new text end
change the location of its

registered office
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, it shall file with the secretary of state and the commissioner of the agency,
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new text begin

by filing
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a certificate
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stating
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with the secretary of state and the commissioner specifying
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the new location
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by city, town, or other community
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and the effective date of change.
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When

the certificate has been duly filed, the board of directors may make the change without any

further action.
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new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 12.

Minnesota Statutes 2024, section 115A.69, is amended to read:

115A.69 POWERS.

Subdivision 1.

General.

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A district shall have all powers necessary or convenient to

perform its duties, including the powers provided in this section.

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new text begin

A district has all the

authority and responsibilities for solid waste management purposes that is given to counties

under this chapter and chapters 400 and 473, as applicable.

new text end

Subd. 2.

Actions.

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The
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new text begin
A
new text end
district may sue and be sued
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,
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and
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shall be
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new text begin
may exercise the

rights and authorities of
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a public body within the meaning of chapter 562.

Subd. 3.

Acquiring property.

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The
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new text begin
(a) A
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district may acquire by purchase, lease,
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condemnation,
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gift, or grant
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,
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any right, title, and interest in and to real or personal property

deemed necessary
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for the
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to
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exercise
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of
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its powers or
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the accomplishment of
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new text begin
to accomplish
new text end

its purposes, including positive and negative easements and water and air rights.

new text begin

(b)
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Any local government unit and the commissioners of transportation, natural resources,

and administration may convey to or permit the use of any property or facilities by the

district, subject to the rights of the holders of any bonds issued
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with respect thereto
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new text begin
for the

property or facilities
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, with or without compensation and without an election or approval by

any other government agency.
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The
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new text begin
A
new text end
district may hold the property
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for its purposes, and
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new text begin

or
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may lease or rent the property
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so far as not needed for its purposes,
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upon the terms and

in the manner
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as
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it deems advisable.

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The
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new text begin
(c) A district's
new text end
right to acquire lands and property rights by condemnation
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shall be

exercised in accordance with
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new text begin
is governed by
new text end
chapter 117. The district may take possession

of any property for which condemnation proceedings have been commenced at any time

after the issuance of a court order appointing commissioners for its condemnation.

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Subd. 4.

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Right of entry.

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Whenever the district deems it necessary to the accomplishment

of its purposes, the district or any member, employee, or agent thereof, when authorized by

it, may enter upon any property, public or private, for the purpose of obtaining information

or conducting surveys or investigations, provided that the entrance and activity is undertaken

after reasonable notice and during normal business hours and provided that compensation

is made for any damage to the property caused by the entrance and activity.

deleted text end

Subd. 5.

Gifts and grants.

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The
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new text begin
A
new text end
district may apply for and accept gifts, loans, or other

property from the United States, the state, or any person for any of its purposes
deleted text begin
,
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new text begin
;
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may enter

into any
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necessary related
new text end
agreement
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required in connection therewith,
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new text begin
;
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and may hold, use,

and dispose of the money or property in accordance with the terms of the gift, grant, loan
new text begin
,
new text end

or agreement.

Subd. 6.

Property exempt from taxation.

Any real or personal property owned, used,

or occupied by
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the
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new text begin
a
new text end
district for any authorized purpose is declared to be acquired, owned,

used
new text begin
,
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and occupied for public and governmental purposes
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,
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and
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shall be exempted
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new text begin
is exempt
new text end

from taxation by the state or any political subdivision of the state, except to the extent that

the property is subject to the sales and use tax under chapter 297A, provided that those

properties
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shall be
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new text begin
are
new text end
subject to special assessments levied by a political subdivision for a

local improvement in amounts proportionate to and not exceeding the special benefit received

by the properties from the improvement.
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No possible
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new text begin
Only
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use of the properties
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in any

manner different from their use
deleted text end
for solid waste management
new text begin
purposes
new text end
at the time
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shall be
deleted text end
new text begin

is
new text end
considered in determining the special benefit received by the properties.

Subd. 7.

Facilities and services.

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The
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new text begin
A
new text end
district may construct, equip, develop, enlarge,

improve, and operate solid waste facilities and services as it deems necessary and may

negotiate contracts for the use of public or private facilities and services.
deleted text begin
The
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new text begin
A
new text end
district
deleted text begin

shall
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new text begin
must
new text end
contract with private persons
deleted text begin
for the construction, maintenance, and operation

of
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new text begin
to construct, maintain, and operate
new text end
facilities and services
deleted text begin
where the facilities and services
deleted text end
new text begin

that
new text end
are adequate
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and
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new text begin
,
new text end
available for use
new text begin
,
new text end
and competitive with other means of providing the

same service.

Subd. 8.

Rates; charges.

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The
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new text begin
A
new text end
district may establish and collect rates and charges for

the facilities and services
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provided by the district
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new text begin
it provides
new text end
and may negotiate and collect

rates and charges for facilities and services
deleted text begin
contracted for by the district
deleted text end
new text begin
provided under

contract
new text end
.
deleted text begin
The board of directors of the district may agree with the holders of district

obligations which are secured by revenues of the district as to the maximum or minimum

amounts which the district shall charge and collect for services provided by the district.

Before establishing or raising any rates and charges, the board of directors shall hold a

public hearing regarding the proposed rates and charges. Notice of the hearing shall be

published at least once in a legal newspaper of general circulation throughout the area

affected by the rates and charges. Publication shall be no more than 45 days and no less

than 15 days prior to the date of the hearing.
deleted text end

Subd. 9.

Disposition of property.

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The
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new text begin
A
new text end
district may sell or otherwise dispose of any

real or personal property acquired by it which is no longer required
deleted text begin
for accomplishment of
deleted text end
new text begin

to accomplish
new text end
its purposes. The property
deleted text begin
shall
deleted text end
new text begin
must
new text end
be sold in the manner provided by

section
469.065
, insofar as practical. The district
deleted text begin
shall
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new text begin
must
new text end
give
new text begin
appropriate
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notice of sale
deleted text begin

which it deems appropriate
deleted text end
. When
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the
deleted text end
new text begin
a
new text end
district determines that
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any
deleted text end
property
deleted text begin
which has

been
deleted text end
acquired from a government unit without compensation is no longer required, the

district
deleted text begin
shall
deleted text end
new text begin
must
new text end
transfer it to the government unit.

Subd. 10.

Disposition of products and energy.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may use, sell, or otherwise

dispose of
deleted text begin
all of the
deleted text end
products and energy produced by its facilities. Section
471.345

deleted text begin
shall
deleted text end
new text begin

does
new text end
not apply to the sale of products and energy. The district
deleted text begin
shall
deleted text end
new text begin
must
new text end
give
deleted text begin
particular

consideration
deleted text end
new text begin
preference
new text end
to the needs of purchasers in this state
deleted text begin
and shall actively promote

sales to such purchasers so long as this can be done at
deleted text end
new text begin
, provided that such preference

conforms with
new text end
prices and
deleted text begin
under
deleted text end
conditions that meet constitutional requirements and
deleted text begin
that

are
deleted text end
new text begin
is
new text end
consistent with the district's object of being financially self supporting to the greatest

extent possible.

Subd. 11.

Contracts.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may enter into any contract necessary or proper
deleted text begin
for

the
deleted text end
new text begin
to
new text end
exercise
deleted text begin
of
deleted text end
its powers or
deleted text begin
the accomplishment of
deleted text end
new text begin
accomplish
new text end
its purposes
new text begin
, including

contracting with a county or counties for enforcement activities and contracting with private

entities to purchase goods or services
new text end
.

Subd. 12.

Joint powers.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may act under
deleted text begin
the provisions of
deleted text end
section
471.59
deleted text begin
,
deleted text end

or any other law providing for joint or cooperative action between government units.

Subd. 13.

Research.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may conduct research studies and programs
deleted text begin
,
deleted text end
new text begin
;
new text end
collect

and analyze data
deleted text begin
,
deleted text end
new text begin
;
new text end
prepare reports, maps, charts, and tables
deleted text begin
,
deleted text end
new text begin
;
new text end
and conduct all necessary

hearings and investigations in connection with its work and may advise and assist other

government units on planning matters within the scope of its powers, duties, and objectives.

Subd. 14.

Employees; contracts for services.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may employ persons or

firms and contract for services to perform engineering, legal, or other services necessary to

carry out its functions.
new text begin
A district may give preference to hiring employees employed by

member counties.
new text end

Subd. 15.

Insurance.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may require any employee to obtain and file with

it an individual bond or fidelity insurance policy. It may procure insurance in amounts it

deems necessary to insure against liability of the board of directors and employees or both,

for personal injury or death and property damage or destruction, with the force and effect

stated in chapter 466, and against risks of damage to or destruction of any of its facilities,

equipment, or other property
deleted text begin
as it deems necessary
deleted text end
.

Subd. 16.

Reviewing projects.

deleted text begin
The
deleted text end
new text begin
A
new text end
district may require that
deleted text begin
persons shall
deleted text end
new text begin
a person

may
new text end
not acquire, construct, alter, reconstruct, or operate a solid waste facility within the

district without
deleted text begin
prior consultation with and
deleted text end
new text begin
the district's
new text end
approval
deleted text begin
of the district
deleted text end
.

new text begin

Subd. 17.

new text end

new text begin

Technical advisory committee.

new text end

new text begin

A district may establish and appoint a solid

waste management technical advisory committee comprised of public and private sector

individuals with technical expertise in waste management to advise the district on matters

the district deems appropriate.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 13.

Minnesota Statutes 2024, section 115A.70, subdivision 8, is amended to read:

Subd. 8.

deleted text begin
Authority
deleted text end
new text begin
Designation
new text end
.

A
deleted text begin
waste management
deleted text end
district
deleted text begin
possessing designation

authority in its articles of incorporation may be authorized to
deleted text end
new text begin
may
new text end
designate a resource

recovery facility under sections
115A.80
to
115A.89
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 14.

Minnesota Statutes 2024, section 115A.71, is amended to read:

115A.71 BONDING POWERS.

deleted text begin

Subdivision 1.

deleted text end

deleted text begin

General.

deleted text end

deleted text begin

A district may exercise the bonding powers provided in this

section to the extent the powers are authorized by the order of the commissioner establishing

the district and by its articles of incorporation.

deleted text end

Subd. 2.

Debt.

deleted text begin
The
deleted text end
new text begin
A
new text end
district's bonds
deleted text begin
shall
deleted text end
new text begin
must
new text end
be sold, issued, and secured in the

manner provided in chapter 475 for revenue bonds
new text begin
,
new text end
and the district
deleted text begin
shall have
deleted text end
new text begin
has
new text end
the same

powers and duties as a municipality and its governing body in issuing revenue bonds under

that chapter. No election
deleted text begin
shall be
deleted text end
new text begin
is
new text end
required. The bonds may be sold at any price and at

public or private sale as determined by the district and
deleted text begin
shall
deleted text end
new text begin
are
new text end
not
deleted text begin
be
deleted text end
subject to any

limitation as to rate.

Subd. 3.

Revenue bonds.

(a) A district may borrow money and incur indebtedness by

issuing bonds and obligations
deleted text begin
which
deleted text end
new text begin
that
new text end
are payable solely
new text begin
from
new text end
:

(1)
deleted text begin
from
deleted text end
revenues, income, receipts, and profits derived by the district from its operation

and management of solid waste facilities;

(2)
deleted text begin
from
deleted text end
the proceeds of warrants, notes, revenue bonds, debentures, or other evidences

of indebtedness issued and sold by the district
deleted text begin
which
deleted text end
new text begin
that
new text end
are payable solely from such

revenues, income, receipts, and profits;
new text begin
and
new text end

(3)
deleted text begin
from
deleted text end
federal or state grants, gifts, or other
deleted text begin
moneys
deleted text end
new text begin
revenue
new text end
received by the district
deleted text begin

which are available therefor
deleted text end
.

(b) Every issue of revenue bonds by
deleted text begin
the
deleted text end
new text begin
a
new text end
district
deleted text begin
shall
deleted text end
new text begin
must
new text end
be payable out of any funds

or revenues from
deleted text begin
any
deleted text end
new text begin
a
new text end
facility of the district, subject only to agreements with the holders

of particular bonds or notes pledging particular revenues or funds. If
deleted text begin
any
deleted text end
new text begin
a
new text end
facility
deleted text begin
of the

district
deleted text end
is funded in whole or in part by Minnesota waste management bonds issued under

sections
115A.58
and
115A.59
, the state bonds
deleted text begin
shall
deleted text end
take priority.
deleted text begin
The
deleted text end
new text begin
A
new text end
district may provide

for priorities of liens in the revenues between the holders of district obligations issued at

different times or under different resolutions.
deleted text begin
The
deleted text end
new text begin
A
new text end
district may provide for the refunding

of any district obligation through the issuance of other district obligations entitled to rights

and priorities similar in all respects to those held by the obligations that are refunded.

new text begin

Subd. 4.

new text end

new text begin

General obligation bonds; tax levies.

new text end

new text begin

(a) The board may, by resolution,

authorize the issuance of general obligation bonds to:

new text end

new text begin

(1) acquire, construct, or improve solid waste disposal sites and facilities and to pay

interest during their construction and for a reasonable period thereafter; and

new text end

new text begin

(2) pay up to 50 percent of first-year operating costs for a newly constructed solid waste

disposal site or facility.

new text end

new text begin

(b) The board may establish a reserve for bond payments, working capital, refunding of

outstanding bonds, certificates of indebtedness, or judgments.

new text end

new text begin

(c) With respect to bonds issued under this section, the board:

new text end

new text begin

(1) must pledge its full faith and credit and taxing power for payment of the bonds,

including use of any revenues received from user charges;

new text end

new text begin

(2) must sell and provide security for the bonds in the manner provided in chapter 475;

and

new text end

new text begin

(3) has the same powers and duties as a municipality issuing bonds under chapter 475,

except that no election is required and the debt limitations of that chapter do not apply.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 15.

Minnesota Statutes 2024, section 115A.72, is amended to read:

115A.72 AUDIT.

The board
deleted text begin
of directors
deleted text end
, at the close of each year's business,
deleted text begin
shall cause
deleted text end
new text begin
must have
new text end
an

audit of the books, records, and financial affairs of the district
deleted text begin
to be made
deleted text end
new text begin
conducted
new text end
by
deleted text begin
a
deleted text end
new text begin

an independent,
new text end
certified public accountant or the state auditor. Copies of
deleted text begin
a written report

of
deleted text end
the audit, certified
deleted text begin
to
deleted text end
by the auditors,
deleted text begin
shall
deleted text end
new text begin
must
new text end
be
deleted text begin
placed and kept on file
deleted text end
new text begin
maintained
new text end

at the
deleted text begin
principal place of business of the district
deleted text end
new text begin
district's registered office
new text end
and
deleted text begin
shall be
deleted text end
filed

with the secretary of state
new text begin
, the state auditor,
new text end
and the commissioner.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 16.

new text begin

[115A.73] TERMINATION.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Resolution.

new text end

new text begin

A board may initiate proceedings to terminate the district

by proposing a resolution for termination stating the reasons why the existence of the district

is no longer in the public interest.

new text end

new text begin

Subd. 2.

new text end

new text begin

Public hearing.

new text end

new text begin

Before adopting a resolution for termination, the board must

hold a public hearing to receive comments on the proposed termination. At least 15 days

but no more than 45 days before the hearing, the board must post notice of the hearing on

each member county's website, publish notice of the hearing in a newspaper of general

circulation in each member county, and mail the notice to the governing body of each city

and town served by the district. In addition to comments the board receives at the public

hearing, the board must accept comments submitted to it in written or electronic form until

ten days after the hearing. The board must prepare a written summary of all comments

received and the board's responses to the comments. The board must file the adopted

resolution for termination and the summary of responses to public comments with the

recording officer of each member county.

new text end

new text begin

Subd. 3.

new text end

new text begin

Joint resolution of termination.

new text end

new text begin

After receiving the approved district resolution

for termination and summary of comments received, each member county must adopt a

joint resolution that confirms the district resolution for termination and states that the

existence of the district is no longer in the public interest. Each member county must publish

notice of the joint resolution in a newspaper of general circulation in the county and mail

the notice to the governing body of each city or town in the county that is served by the

district. If any member county adopts a resolution objecting to the termination, the

termination may not proceed.

new text end

new text begin

Subd. 4.

new text end

new text begin

Joint termination plan.

new text end

new text begin

Before the effective date of termination of the district,

the counties must prepare a joint termination plan and timeline that describes the process

of transferring all responsibilities, duties, facilities, and services from the district to the

member counties. The plan must describe the process that each county will undertake to

prepare required plans and ordinances, secure funding sufficient to carry out its solid waste

duties, and retain staff to conduct solid waste activities.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 17.

Minnesota Statutes 2024, section 115A.82, is amended to read:

115A.82 ELIGIBILITY.

Facilities may be designated under sections
115A.80
to
115A.89
by:

(1) a solid waste management district established
deleted text begin
pursuant to sections
115A.62
to
115A.72

and possessing designation authority in its articles of incorporation
deleted text end
new text begin
under section 115A.641
new text end
;

or

(2) a county, but only for waste generated outside of the boundaries of a district qualifying

under clause (1) or the Western Lake Superior Sanitary District established under chapter

458D.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 18.

Minnesota Statutes 2024, section 473.8441, is amended by adding a subdivision

to read:

new text begin

Subd. 6.

new text end

new text begin

Solid waste management district.

new text end

new text begin

The commissioner must distribute grants

under this section to a solid waste management district established under section 115A.641

in an amount equal to the sum that would otherwise have been distributed to the individual

metropolitan counties, or portions thereof, that compose the district. A solid waste

management district awarded grant funds under this section is subject to the provisions of

this section that apply to counties.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 19.
new text begin
REVISOR INSTRUCTION.
new text end

new text begin

The revisor must renumber Minnesota Statutes, section 115A.70, subdivision 8, as

Minnesota Statutes, section 115A.69, subdivision 18.

new text end

Sec. 20.
new text begin
REPEALER.
new text end

new text begin

(a)

new text end

new text begin

Minnesota Statutes 2024, sections 115A.62; 115A.64, subdivisions 1, 2, 3, and 5;

115A.66; 115A.67; and 115A.715,

new text end

new text begin

are repealed.

new text end

new text begin

(b)

new text end

new text begin

Minnesota Statutes 2025 Supplement, section 115A.64, subdivisions 4 and 6,

new text end

new text begin

are

repealed.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

APPENDIX

Repealed Minnesota Statutes: 26-06993

115A.62 PURPOSE; PUBLIC INTEREST; DECLARATION OF POLICY.

The legislature finds that the development of integrated and coordinated solid waste management systems is needed to manage properly the solid waste generated in the state, to conserve and protect the natural resources in the state and the health, safety, and welfare of its citizens, and to further the state policies and purposes expressed in section
115A.02
; that this need cannot always be met solely by the activities of individual political subdivisions or by agreements among subdivisions; and that therefore it is necessary to establish a procedure for the creation of solid waste management districts having the powers and performing the functions prescribed in sections
115A.62
to
115A.72
.

115A.64 PROCEDURE FOR ESTABLISHING AND ALTERING.

Subdivision 1.

Local petition.

Waste districts shall be established and their powers and boundaries defined or altered by the commissioner only after petition requesting the action jointly submitted by the governing bodies of petitioners comprising at least one-half of the counties partly or wholly within the district. A petition for alteration shall include a resolution by the board of directors of the district approving the alteration.

Subd. 2.

Petition contents.

(a) A petition requesting establishment or alteration of a waste district must contain the information the commissioner may require, including at least the following:

(1) the name of the proposed district;

(2) a description of the territory and political subdivisions within and the boundaries of the proposed district or alteration thereto, along with a map showing the district or alteration;

(3) resolutions of support for the district, as proposed to the commissioner, from the governing body of each of the petitioning counties;

(4) a statement of the reason, necessity, and purpose for the district, plus a general description of the solid waste management improvements and facilities contemplated for the district showing how its activities will accomplish the purpose of the district and the purposes for waste resource districts stated in sections
115A.62
to
115A.72
;

(5) articles of incorporation stating:

(i) the powers of the district consistent with sections
115A.62
to
115A.72
, including a statement of powers proposed pursuant to sections
115A.70
,
115A.71
, and
115A.715
; and

(ii) provisions for representation and election of the board of directors of the district.

(b) After the petition has been filed, no petitioner may withdraw from it except with the written consent of all other petitioners for the district.

Subd. 3.

Local review and comment.

At least 60 days before submitting the petition to the commissioner, the petitioners shall publish notice of the petition in newspapers of general circulation in the proposed district and shall cause a copy of the petition to be served upon the agency, the governing body of each political subdivision which is wholly or partly within the proposed district or is affected by the proposed alteration and each regional development commission affected by the proposed district or alteration. Each entity receiving service shall have 60 days within which to comment to the petitioners on the petition and the proposed district or alteration. Proof of service, along with any comments received, shall be attached to the petition when it is submitted to the commissioner.

Subd. 4.

Review procedures.

(a) Upon receipt of the petition, the commissioner shall determine whether the petition conforms in form and substance to the requirements of law and rule.

(b) If the petition does not conform to the requirements, the commissioner shall return it immediately to the petitioners with a statement describing the deficiencies and the amendments necessary to rectify them.

(c) If the petition does conform to the requirements, and if comments have been received objecting to the establishment or alteration of the district as proposed, the commissioner shall request the Office of Administrative Hearings to conduct a hearing on the petition. The hearing shall be conducted in the proposed district in the manner provided in chapter 14 for contested cases. If no comments have been received objecting to the establishment of the district as proposed, the commissioner may proceed to grant or deny the petition without the necessity of conducting a contested case hearing.

(d) If the petition conforms to the requirements of law and rule, the commissioner shall also immediately submit the petition to the solid waste and the technical advisory councils for review and recommendation and shall prepare a report containing recommendations on the disposition of the petition. The commissioner's report shall contain at least the commissioner's findings and conclusions on whether the proposed boundaries, purposes, powers, and management plans of the district or alteration thereto serve the purposes of waste resource districts, are appropriately related to the waste generation, collection, processing, and disposal patterns in the area, and are generally consistent with the purposes of the agency's regulatory program.

Subd. 5.

Corrections allowed.

No petition submitted by the requisite number of counties shall be void or dismissed on account of defects exposed in the hearing documents or report. The commissioner shall permit the petition to be amended in form and substance to conform to the facts by correcting any errors in the description of the territory or any other defects.

Subd. 6.

Order.

(a) After considering the reports of the administrative law judge, if a contested case hearing has been held, and the recommendations of the advisory councils, the commissioner shall make a final decision on the petition.

(b) If the commissioner finds and determines that the establishment or alteration of a district as proposed in the petition would not be in the public interest and would not serve the purposes of sections
115A.62
to
115A.72
, the commissioner shall give notice to the petitioners of intent to deny the petition. If a contested case hearing has not been held, the petitioners may request a hearing within 30 days of the notice of intent to deny the petition. The request shall be granted. Following the hearing and the report of the administrative law judge, the commissioner shall make a final decision on the petition and mail a copy of the decision to the governing body of each affected political subdivision.

(c) If the commissioner finds and determines that the establishment or alteration of a district as proposed in the petition would be in the public interest and would serve the purposes of sections
115A.62
to
115A.72
, the commissioner shall, by order, establish the district, define its boundaries, and give it a corporate name by which, in all proceedings, it shall thereafter be known. The order shall include articles of incorporation stating the powers of the district and the location of its registered office.

(d) Upon the filing of a certified copy of the order of the commissioner with the secretary of state, the district shall become a political subdivision of the state and a public corporation, with the authority, power, and duties prescribed in sections
115A.62
to
115A.72
and the order of the commissioner. At the time of filing, a copy of the order shall be mailed by the commissioner to the governing body of each political subdivision wholly or partly within the district or affected by the alteration of the district.

115A.66 TERMINATION.

Subdivision 1.

Petition.

Proceedings for the termination of a district shall be initiated by the filing of a petition with the commissioner. The petition shall be submitted by the governing bodies of not less than one-half of the counties which are wholly or partly in the district. The petition shall state that the existence of the district is no longer in the public interest. The petitioners shall publish notice of the petition in newspapers of general circulation in the district and shall cause to be served upon each political subdivision wholly or partly within the district a copy of the petition, and proof of service shall be attached to the petition filed with the commissioner.

Subd. 2.

Bond; payment of costs.

If the petition is dismissed or denied, the petitioners shall be required to pay all costs and expenses of the proceeding for termination. At the time of filing the petition, a bond shall be filed by the petitioners with the commissioner in such sum as the commissioner determines to be necessary to ensure payment of costs.

Subd. 3.

Hearing; decision.

If objection is made to the commissioner against the petition for termination, a contested case hearing on the petition shall be held in the waste district pursuant to chapter 14. If the commissioner determines that the termination of the district as proposed in the petition would not be in the public interest, the commissioner shall give notice to the petitioner of intent to deny the petition. If a contested case hearing has not been held, the petitioner may request a hearing within 30 days of the notice of intent to deny the petition. The request shall be granted. Following the hearing and the report of the administrative law judge, the commissioner shall make a final decision on the petition. If the petition is dismissed, all costs of the proceeding shall be assessed against the petitioner. If the commissioner determines that the existence of the district is no longer in the public interest, the commissioner shall by findings and order terminate the district. Upon the filing of a certified copy of the findings and order with the secretary of state, the district shall cease to be a public corporation and a political subdivision of the state.

Subd. 4.

Limitation.

The commissioner shall not entertain a petition for termination of a district within five years from the date of the formation of the district nor shall the commissioner entertain a petition for termination of the same district more often than once in five years.

115A.67 ORGANIZATION OF DISTRICT.

Subdivision 1.

Chair; board.

The chair shall be elected from outside the board of directors by majority vote of the board of directors. The first chair shall serve for a term of two years. Members of the board of directors shall be residents of the district.

Subd. 2.

First meeting.

The first meeting of the board of directors shall be held at the call of the chair, after notice, for the purpose of proposing the bylaws, electing officers and for any other business that comes before the meeting. The bylaws of the district, and amendments thereto, shall be adopted by a majority vote of the board of directors unless the certificate of incorporation requires a greater vote.

Subd. 3.

Bylaws.

The bylaws shall state:

(1) the manner and time of calling regular meetings of the representatives and the board of directors, not less than once annually;

(2) the title, manner of selection, and term of office of officers of the district;

(3) the term of office of members of the board of directors, the manner of their removal, and the manner of filling vacancies on the board of directors;

(4) the powers and duties of the board of directors consistent with the order and articles of incorporation establishing the district;

(5) the definition of a quorum for meetings of the board of directors, which shall be not less than a majority of the members;

(6) the compensation and reimbursement for expenses for members of the board of directors, which shall not exceed that provided for in section
15.0575, subdivision 3
; and

(7) such other provisions for regulating the affairs of the district as the board of directors shall determine to be necessary.

115A.715 SOLID WASTE AUTHORITY.

A district has all the authority of a county for solid waste management purposes that is given to counties under this chapter and chapters 400 and 473, except the authority to issue general obligation bonds or to levy property taxes. A district has the authority of a county to issue general obligation bonds and to levy property taxes only if and only to the extent that the governing body of each county that is a member of the district agrees to delegate the authority to the district. The delegation of the authority is irrevocable unless the governing body of each county that is a member of the district agrees to the revocation.