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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 &quot;governmental unit&quot; 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,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of <!-- -->Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of <!-- -->Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of <!-- -->Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of <!-- -->Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of <!-- -->California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of <!-- 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t54/pdf/t54c40.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 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\u003cbr\u003eportion of their territory or boundary, by agreement entered into through action of\u003cbr\u003etheir governing bodies, may jointly or cooperatively exercise their respective\u003cbr\u003eseparate powers, or any power common to the contracting parties or any similar\u003cbr\u003epowers, including those which are the same except for the territorial limits within\u003cbr\u003ewhich they may be exercised for the purpose of acquiring, constructing, and\u003cbr\u003emaintaining any building for their joint use. The term \u0026quot;governmental unit\u0026quot; as used in\u003cbr\u003ethis section includes every city, county, park district, school district, states and\u003cbr\u003eUnited States governments and departments of each thereof, and all other political\u003cbr\u003esubdivisions 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\u003cbr\u003enot they have in common any portion of their territory or boundary, by agreement\u003cbr\u003eentered into through action of their governing bodies, may jointly or cooperatively\u003cbr\u003eexercise their respective separate powers, or any power common to the contracting\u003cbr\u003eparties or any similar powers, for the purpose of acquiring equipment or constructing\u003cbr\u003eroads, bridges, and road and bridge improvements.3.An agency, department, or institution of this state may enter an agreement with the\u003cbr\u003estate of South Dakota to form a bistate authority to jointly exercise any function that\u003cbr\u003ethe entity is authorized by law to perform.Any agreement entered under thissubsection must be submitted to the legislative assembly or, if the legislative\u003cbr\u003eassembly is not in session, to the legislative management for approval or rejection\u003cbr\u003eand may not become effective until approved by the legislative assembly or the\u003cbr\u003elegislative management.4.Counties or cities, or any combination of counties or cities, may jointly issue bonds in\u003cbr\u003ethe 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\u003cbr\u003ethe purpose sought shall be accomplished or the manner in which the power or powers shall be\u003cbr\u003eexercised.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\u003cbr\u003eacquisition, construction, and maintenance of a building for their joint use by bonds issued\u003cbr\u003epursuant to section 54-40-03 must provide for a building management commission composed of\u003cbr\u003eelected officials of the county, elected officials of the city, and representatives of the public, with\u003cbr\u003ethe exact number of each to be specified in the agreement. The agreement must specify the\u003cbr\u003epowers to be exercised by the building management commission with respect to the acquisition,\u003cbr\u003econstruction, and maintenance of the building, and with respect to any lease entered into by the\u003cbr\u003ecommission and any noncounty and noncity governmental entity for use of a portion of the\u003cbr\u003ebuilding. Notwithstanding section 48-08-07, a lease of a portion of any building used jointly by a\u003cbr\u003ecounty 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\u003cbr\u003ebuy real estate for public buildings, proceeds of bonds issued pursuant to chapter 21-03, and\u003cbr\u003eother proper funds or properties already on hand, to carry out the purposes of the agreement.\u003cbr\u003eThe total amount of bonds issued by a county and a city under this section must be in proportion\u003cbr\u003eto the joint usage of the building by the county and the city and must also consider the tax base\u003cbr\u003eof 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\u003cbr\u003ebody of the county may submit to its qualified voters the proposition of issuing bonds in the total\u003cbr\u003eamount required to be borrowed for the building, under an initial resolution and ballot stating the\u003cbr\u003emaximum total principal amount of the bonds and the maximum principal amount thereof for\u003cbr\u003ewhich the city shall be obligated. In this event the governing body of the city shall adopt an\u003cbr\u003eordinance or resolution stating the maximum amount of the obligation proposed to be incurred by\u003cbr\u003ethe city and the other matters of information required for an initial resolution for bonds under the\u003cbr\u003eprovisions of section 21-03-09, which ordinance or resolution shall be subject to referral to the\u003cbr\u003equalified electors of the city by petition of the percentage of the qualified electors referred to in\u003cbr\u003echapter 40-12 and upon the conditions and in the manner therein set forth. If the issuance of the\u003cbr\u003ebonds is approved by the required majority of the qualified electors of the county voting thereon,\u003cbr\u003eand if the city ordinance or resolution is not referred or is approved by a majority of the qualified\u003cbr\u003eelectors of the city voting thereon, the bonds may be issued by the county and the obligation\u003cbr\u003eincurred by the city. The principal amount of the obligation incurred by the city to the county, as\u003cbr\u003eprovided in the agreement, must be a general obligation and indebtedness of the city as referred\u003cbr\u003eto and limited by section 21-03-04 and by section 15 of article X of the Constitution of North\u003cbr\u003eDakota, and must be deducted from the principal amount of the bonds in determining the net\u003cbr\u003eindebtedness incurred by the county in the issuance thereof. The city shall levy a direct, annual,\u003cbr\u003eirrepealable tax for the payment of its obligation and the interest thereon as required for the\u003cbr\u003epayment of general obligation bonds under the provisions of section 21-03-15, which tax must be\u003cbr\u003eretained by the county auditor in the sinking and interest fund for the county bonds as provided in\u003cbr\u003esection 21-03-41. Each payment of principal, interest, and premium, if any, due with respect to\u003cbr\u003ethe county bonds must be the obligation of the city in the proportion that the original principal\u003cbr\u003eamount of the city's obligation bears to the original principal amount of the bonds, for the purpose\u003cbr\u003eof ascertaining the amount of net indebtedness of the city and the county outstanding at any\u003cbr\u003etime, of determining the amounts of taxes required to be assessed and collected annually by the\u003cbr\u003ecity and the county for the bond sinking and interest fund, and of determining the amounts of\u003cbr\u003eincome from the investment of the sinking and interest fund which are to be credited against the\u003cbr\u003eobligations of the city and county, respectively, and for all other purposes whatsoever. Nothing\u003cbr\u003eherein requires the city-county agreement to be executed before the authorization of the bonds\u003cbr\u003eand 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\u003cbr\u003ethe maximum net indebtedness authorized to be incurred by each of them, respectively. If so\u003cbr\u003eprovided in the agreement, the city may evidence its obligation by the issuance of general\u003cbr\u003eobligation bonds of the city and appropriate the proceeds of its bonds for expenditure in\u003cbr\u003eaccordance with the terms of the agreement, and the amount of the county bonds may be\u003cbr\u003ereduced by the amount issued by the city. Funds other than taxes for debt service may be paid\u003cbr\u003eto and disbursed by such agency as may be agreed upon, but the method of disbursement must\u003cbr\u003eagree as far as practicable with the method provided by law for the disbursement of funds by the\u003cbr\u003eparties 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\u003cbr\u003eexercise of powers, and the return of any surplus moneys in proportion to contributions of the\u003cbr\u003eseveral contracting parties after the purpose of the agreement has been completed.54-40-06. Residence requirement. 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