54-40 Joint Exercise of Governmental Powers
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<![CDATA[CHAPTER 54-40JOINT EXERCISE OF GOVERNMENTAL POWERS54-40-01. Agreement - Exercise of joint powers - Bonds.1.Two or more governmental units or municipal corporations having in common any<br>portion of their territory or boundary, by agreement entered into through action of<br>their governing bodies, may jointly or cooperatively exercise their respective<br>separate powers, or any power common to the contracting parties or any similar<br>powers, including those which are the same except for the territorial limits within<br>which they may be exercised for the purpose of acquiring, constructing, and<br>maintaining any building for their joint use. The term "governmental unit" as used in<br>this section includes every city, county, park district, school district, states and<br>United States governments and departments of each thereof, and all other political<br>subdivisions even though not specifically named or referred to herein.2.Two or more counties or cities, or any combination of counties or cities, whether or<br>not they have in common any portion of their territory or boundary, by agreement<br>entered into through action of their governing bodies, may jointly or cooperatively<br>exercise their respective separate powers, or any power common to the contracting<br>parties or any similar powers, for the purpose of acquiring equipment or constructing<br>roads, bridges, and road and bridge improvements.3.An agency, department, or institution of this state may enter an agreement with the<br>state of South Dakota to form a bistate authority to jointly exercise any function that<br>the entity is authorized by law to perform.Any agreement entered under thissubsection must be submitted to the legislative assembly or, if the legislative<br>assembly is not in session, to the legislative management for approval or rejection<br>and may not become effective until approved by the legislative assembly or the<br>legislative management.4.Counties or cities, or any combination of counties or cities, may jointly issue bonds in<br>the same manner and for the purposes provided for in chapter 21-03.54-40-02. Agreement to state purpose. Such agreement must state the purpose of theagreement or the power or powers to be exercised, and it must provide for the method by which<br>the purpose sought shall be accomplished or the manner in which the power or powers shall be<br>exercised.54-40-02.1. Building management commission for county and city building - Leaseauthority. Any agreement entered into between a county and a city under this chapter for the<br>acquisition, construction, and maintenance of a building for their joint use by bonds issued<br>pursuant to section 54-40-03 must provide for a building management commission composed of<br>elected officials of the county, elected officials of the city, and representatives of the public, with<br>the exact number of each to be specified in the agreement. The agreement must specify the<br>powers to be exercised by the building management commission with respect to the acquisition,<br>construction, and maintenance of the building, and with respect to any lease entered into by the<br>commission and any noncounty and noncity governmental entity for use of a portion of the<br>building. Notwithstanding section 48-08-07, a lease of a portion of any building used jointly by a<br>county and a city pursuant to this section may be for a term longer than two years.54-40-03.Disbursement of funds - Issuance of bonds.The parties to suchagreement may provide for disbursements from public funds, including funds already raised to<br>buy real estate for public buildings, proceeds of bonds issued pursuant to chapter 21-03, and<br>other proper funds or properties already on hand, to carry out the purposes of the agreement.<br>The total amount of bonds issued by a county and a city under this section must be in proportion<br>to the joint usage of the building by the county and the city and must also consider the tax base<br>of the county and the tax base of the city. When a county and a city wholly within the countyPage No. 1boundaries propose to issue bonds for the purpose of a building for their joint use, the governing<br>body of the county may submit to its qualified voters the proposition of issuing bonds in the total<br>amount required to be borrowed for the building, under an initial resolution and ballot stating the<br>maximum total principal amount of the bonds and the maximum principal amount thereof for<br>which the city shall be obligated. In this event the governing body of the city shall adopt an<br>ordinance or resolution stating the maximum amount of the obligation proposed to be incurred by<br>the city and the other matters of information required for an initial resolution for bonds under the<br>provisions of section 21-03-09, which ordinance or resolution shall be subject to referral to the<br>qualified electors of the city by petition of the percentage of the qualified electors referred to in<br>chapter 40-12 and upon the conditions and in the manner therein set forth. If the issuance of the<br>bonds is approved by the required majority of the qualified electors of the county voting thereon,<br>and if the city ordinance or resolution is not referred or is approved by a majority of the qualified<br>electors of the city voting thereon, the bonds may be issued by the county and the obligation<br>incurred by the city. The principal amount of the obligation incurred by the city to the county, as<br>provided in the agreement, must be a general obligation and indebtedness of the city as referred<br>to and limited by section 21-03-04 and by section 15 of article X of the Constitution of North<br>Dakota, and must be deducted from the principal amount of the bonds in determining the net<br>indebtedness incurred by the county in the issuance thereof. The city shall levy a direct, annual,<br>irrepealable tax for the payment of its obligation and the interest thereon as required for the<br>payment of general obligation bonds under the provisions of section 21-03-15, which tax must be<br>retained by the county auditor in the sinking and interest fund for the county bonds as provided in<br>section 21-03-41. Each payment of principal, interest, and premium, if any, due with respect to<br>the county bonds must be the obligation of the city in the proportion that the original principal<br>amount of the city's obligation bears to the original principal amount of the bonds, for the purpose<br>of ascertaining the amount of net indebtedness of the city and the county outstanding at any<br>time, of determining the amounts of taxes required to be assessed and collected annually by the<br>city and the county for the bond sinking and interest fund, and of determining the amounts of<br>income from the investment of the sinking and interest fund which are to be credited against the<br>obligations of the city and county, respectively, and for all other purposes whatsoever. Nothing<br>herein requires the city-county agreement to be executed before the authorization of the bonds<br>and the city's obligation thereon.The agreement when executed must fix the relativecontributions of the city and county to the capital cost of the building in a manner consistent with<br>the maximum net indebtedness authorized to be incurred by each of them, respectively. If so<br>provided in the agreement, the city may evidence its obligation by the issuance of general<br>obligation bonds of the city and appropriate the proceeds of its bonds for expenditure in<br>accordance with the terms of the agreement, and the amount of the county bonds may be<br>reduced by the amount issued by the city. Funds other than taxes for debt service may be paid<br>to and disbursed by such agency as may be agreed upon, but the method of disbursement must<br>agree as far as practicable with the method provided by law for the disbursement of funds by the<br>parties to the agreement.Strict accountability of all funds and report of all receipts anddisbursements must be provided for.54-40-04. Termination of agreement. Such agreement may be continued for a definiteterm or until rescinded or terminated in accordance with its terms.54-40-05.Agreement shall provide for disposition of property. Such agreementmust provide for the disposition of any property acquired as the result of such joint or cooperative<br>exercise of powers, and the return of any surplus moneys in proportion to contributions of the<br>several contracting parties after the purpose of the agreement has been completed.54-40-06. Residence requirement. Residence requirements for holding office in anygovernmental unit do not apply to any officer appointed to carry out any such agreement.54-40-07.Clarification of constitutional authority and effect of other statutes.Repealed by S.L. 1993, ch. 401, </p>
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