5.0 EDSR 01-12-2009ITEM ~ 5.
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MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: January 12, 2009
SUBJECT: Annual Meeting Election of Officers
Attachment
• "Conflict of Interest Rules far Local EDAs", LMC 2008 Law Summaries.
As a point of information, the attached excerpt from the League of MN Cities 2008 Law
Summaries cites recent statutory changes to the conflict of interest rules for local EDAs.
The City Council has recently appointed Councilmember Matt Westgaxd to the EDA for a
4-year term.
The EDA bylaws indicate the following offices are to be filled through the election process
at the annual meeting of the Authority.
• President
• Vice President
• Secretary
• Treasurer
• Assistant Treasurer
The 2008 officers were as follows:
• President -Pat Dwyer
• Vice President -Dan Tveite
• Secretary -Paul Motin
• Treasurer -Dan Tveite
• Assistant Treasurer -Nick Zerwas
Township expenditures authorized
Chapter 166 (HF 2636*/SF 2807) authorizes certain
expenditures by townships. Section 1 amends Minn. Stat.
C 365.10, subd. 8 by removing a requirement that the
amount of money spent by a township board to purchase
park land must be approved by referendum. Language
that restricts a township board from purchasing park land
without explicit voter approval is preserved. Section 2
amends Minn. Stat. C 365.10, subd. 12 by allowing voters
in a township to approve expenditures to recognize vol-
unteers, service efforts, and retiring town officers, or to
host or support a community celebration. Effective
Aug. 1, 2008. (AF)
~*,;;Conflict of interest rules for local economic devel-
r;
opment authorities
Chapter 197 (HF 3295/SF 2806*) clarifies conflict of
interest rules for local economic development authorities
by amending Minn. Stat. ~ 469.098. It requires a com-
missioner or employee to submit a statement to the other
commissioners of the economic development author-
ity prior to taking action or making a decision that would
substantially affect the financial interest of the commis-
, sinner, an employee, or an associated organization.The new
law provides that a person who fails to submit a state-
ment, omits required information, or knowingly submits
a statement with false information is guilty of a misde-
meanor.The employee's superior is tasked with reassigning
the employee's duty when there is a potential conflict of
interest, and the law states that any individual who know-
ingly violates the subdivision is guilty of a misdemeanor.
The new law prohibits a commissioner or employee
from appearing before a court or government agency as
an agent for anyone other than the economic develop-
ment authority in connection with specified instances in
which the authority is substantially interested for one year
after termination of employment. Additionally, a commis-
sioner or employee is prohibited from receiving financial
assistance or financing for real property other than rental
assistance programs more than once.The county attor-
ney is authorized to seek an injunction in district court
to enforce the provisions of the section. Effective April 18,
2008, except for the criminal penalties, which are effective June 1,
2008. (JO)
Definitions of "political subdivision" and "spe-
cial district" provided; special district reporting
required
Chapter 200 (HF 1309/SF 1436*) makes changes to stat-
utes pertaining to the state auditor.The chapter defines
"political subdivision" and "special district" for purposes of
the laws governing the state auditor. Other sections make
conforming changes related to the new general definition
of political subdivision.The chapter also contains some
new requirements that apply to special districts. The provi-
sions that may be relevant to city operations include the
following:
• Definitions of "political subdivision" and "spe-
cial district" provided. Section 1 creates Minn. Stat.
~ 6.465, which contains definitions for "political subdivi-
sion" and "special district: '
^ "Political subdivision" means a county, home rule
charter, or statutory city, town, school district, met-
ropolitan or regional agency, public corporation,
political subdivision, or special district. "Political
subdivision" does not include a metropolitan or
regional agency or a public corporation audited by
the legislative auditor.
^ "Special district" means a public entity with a spe-
cial or limited purpose, financed by property tax
revenues or other public funds, that is not included
in a city, county, or town financial report as a com-
ponent of that local government; that is created
or authorized by law; and that is governed by (1)
persons directly elected to the governing board of
the district, (2) persons appointed to the govern-
ing board of the district by local elected officials,
(3) local elected officials who serve on the board
by virtue of their elected office, or (4) a combina-
tion of these methods of selection. Special district
includes special taxing districts listed in Minn. Stat.
275.066.
• Special district reporting required. Section 19
creates Minn. Stat. ~ 6.756, which requires special dis-
tricts to file information with the state auditor.
The section requires each special district to file with
the state auditor, within 60 days of adoption, any
document relating to the governance of the district,
including articles of incorporation, bylaws, or agree-
ments, and any amendment to these documents.
• Special district audits required. Section 19
requires a special district with total annual revenue
greater than the threshold amount for cities under
Minn. Stat. ~ 412.591, subd. 3, paragraph (b), to pro-
vide for an annual audit of the district's financial
affairs by the state auditor or a public accountant in
accordance with minimum auditing procedures pre-
scribed by the state auditor.
A special district with total annual revenue that
is equal to or less than the threshold amount for cit-
ies under ~ 412.591, subd. 3, paragraph (b), must
provide for an audit of the district's financial affairs
by the state auditor or a public accountant in accor-
dance with minimum audit procedures prescribed by
the state auditor at least once every five years. The
audit must be for aone-year period to be deter-
2008 Law Summaries
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