CHAPTER 40-01 General Provisions

40-01-01. Definitions.

In this title, unless the context or subject matter otherwise requires:

  1. “City” includes cities incorporated under the city council form and city commission system of government, unless the contrary shall appear.
  2. “Executive officer” means the mayor in council cities or the president of the board of city commissioners in commission cities.
  3. “Governing body” means the city council or the board of city commissioners, as the case may be, of a municipality concerned or affected.
  4. “Municipal corporation” or “municipality” includes all cities organized under the laws of this state, but shall not include any other political subdivision.
  5. “Warrant” means an order drawn by the proper official of the city on its treasury, the warrant or order to be so drawn that when signed by the auditor in an appropriate place it becomes a check on the depository of such city, and no warrant upon the treasury shall be delivered or mailed to the payee or the payee’s agent or representative until such warrant has been signed by the auditor and entered on the auditor’s books as a check drawn on a bank depository.

Source: S.L. 1907, ch. 45, § 63; 1911, ch. 77, § 63; C.L. 1913, § 3833; S.L. 1937, ch. 179, § 1; R.C. 1943, § 40-0101; S.L. 1955, ch. 98, § 8; 1957 Supp., § 40-0101; S.L. 1967, ch. 323, § 99; 1973, ch. 320, § 3.

Notes to Decisions

Application.

The definitions in this section apply to N.D.C.C. ch. 40-05.1, pertaining to home rule in cities. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

President of City Commission.

President of a city commission was included in the phrase “mayor, chief of police, deputy, sheriff, or other police officers”. State ex rel. Shaw v. Frazier, 39 N.D. 430, 167 N.W. 510, 1918 N.D. LEXIS 40 (N.D. 1918).

Law Reviews.

Summary of significant decisions rendered by North Dakota Supreme Court in 1988 relating to municipal corporations, 64 N.D. L. Rev. 260 (1988).

40-01-02. Municipalities are bodies corporate.

Municipalities shall be bodies politic and corporate under the name and style of “city of _____________________________________ ” and under such name may sue and be sued, contract and be contracted with, acquire and hold real and personal property for corporate purposes, and have an official seal which may be changed at pleasure.

Source: Pol. C. 1877, ch. 24, § 20; S.L. 1887, ch. 73, art. 1, § 5; R.C. 1895, §§ 2112, 2363; R.C. 1899, §§ 2112, 2363; S.L. 1905, ch. 62, § 9; R.C. 1905, §§ 2640, 2862; S.L. 1907, ch. 45, § 6; 1911, ch. 77, § 6; C.L. 1913, §§ 3561, 3776, 3859; R.C. 1943, § 40-0102; S.L. 1967, ch. 323, § 100; 1973, ch. 80, § 8.

Cross-References.

Authority to contract with federal government, see § 21-06-08.

Liability of political subdivisions, insurance, tax levy or bonds to pay judgment, see ch. 32-12.1.

Municipalities may accept devises, bequests, legacies, and gifts, see § 1-08-04.

Notes to Decisions

Governmental Immunity Abolished.

The doctrine of governmental immunity from tort liability is abolished and governmental bodies, other than state government, are subject to suits for damages by individuals injured by negligence or wrongful acts or omissions of their agents and employees, whether engaged in a proprietary or governmental function; no tort actions will lie against governmental units for those acts which are discretionary in character, including those traditionally deemed legislative or quasi-legislative, judicial or quasi-judicial. Kitto v. Minot Park Dist., 224 N.W.2d 795, 1974 N.D. LEXIS 133 (N.D. 1974).

Liability Under Implied Contract.

When a municipality receives benefits for which it has the power to contract, it may become liable on an implied contract for the reasonable value of those benefits. Grand Forks County v. Grand Forks, 123 N.W.2d 42, 1963 N.D. LEXIS 104 (N.D. 1963).

Power to Acquire and Hold Property.

Cities under the commission form of government have the power to acquire and hold real and personal property for corporate purposes. State ex rel. Herbrandson v. Vesperman, 52 N.D. 641, 204 N.W. 202, 1925 N.D. LEXIS 129 (N.D. 1925).

Collateral References.

Right of one governmental subdivision to sue another such subdivision for damages, 11 A.L.R.5th 630.

Right of one governmental subdivision to challenge annexation proceedings by another such subdivision, 17 A.L.R.5th 195.

Law Reviews.

Powers and Procedures of City and Village Governing Boards, 31 N.D. L. Rev. 137 (1955).

40-01-03. Judicial notice of existence and change of organization to be taken by courts.

Courts shall take judicial notice of the existence of a municipality by the name and style designated at the time of its incorporation, and of the change of the form of the organization of any municipality from its original form to any other type of organization provided by this title.

Source: Pol. C. 1877, ch. 24, § 9; S.L. 1887, ch. 73, art. 1, § 4; 1893, ch. 129, § 1; R.C. 1895, §§ 2111, 2352; R.C. 1899, §§ 2111, 2352; S.L. 1905, ch. 62, § 8; R.C. 1905, §§ 2639, 2851; S.L. 1907, ch. 45, § 5; 1911, ch. 77, § 5; C.L. 1913, §§ 3560, 3775, 3848; R.C. 1943, § 40-0103.

40-01-04. Vested rights.

All rights and property of every kind and description vested in any municipal corporation previous to any change in its form of organization shall be vested in the same municipal corporation upon its being incorporated under a different type of organization as provided by this title. No rights or liabilities in favor of or against such corporation existing at the time of a change in the form of its organization, and no action or prosecution of any kind shall be affected by such change, but the same shall stand and progress as if no change had been made. When by reason of a change in the form of organization, there is made available a different remedy which is applicable to any right existing before such change became effective, such remedy shall be additional to the remedies theretofore provided.

Source: S.L. 1887, ch. 73, art. 1, § 6; R.C. 1895, § 2113; R.C. 1899, § 2113; S.L. 1905, ch. 62, § 10; R.C. 1905, § 2641; S.L. 1907, ch. 45, § 7; 1911, ch. 77, § 7; C.L. 1913, §§ 3562, 3777; R.C. 1943, § 40-0104.

40-01-05. Ordinances and resolutions remain in force — Legal identity not changed.

A change in the form of organization of a municipality shall not change its legal identity as a municipal corporation. All ordinances and resolutions in force therein at the date of such change shall continue in full force and effect until repealed or amended.

Source: S.L. 1887, ch. 73, art. 1, § 8; R.C. 1895, § 2115; R.C. 1899, § 2115; S.L. 1905, ch. 62, § 12; R.C. 1905, § 2643; S.L. 1907, ch. 45, § 8; 1911, ch. 77, § 8; C.L. 1913, §§ 3564, 3778; R.C. 1943, § 40-0105; S.L. 1955, ch. 88, § 4; 1957 Supp., § 40-0105.

Cross-References.

Existing ordinances and regulations to remain in force after code takes effect, see § 1-02-32.

40-01-06. Bonds, contracts, and conveyances — How signed and countersigned.

All bonds, contracts, and conveyances of a municipality, except as otherwise provided, shall be signed by the executive officer and countersigned by the auditor or clerk, as the case may be.

Source: S.L. 1887, ch. 73, art. 15, § 41; R.C. 1895, § 2311; S.L. 1897, ch. 102, § 1; R.C. 1899, § 2311; S.L. 1905, ch. 62, § 188; R.C. 1905, § 2828; C.L. 1913, § 3757; R.C. 1943, § 40-0106; S.L. 1993, ch. 239, § 8.

Cross-References.

Bonds, provisions governing, see ch. 21-03.

Certificates of indebtedness, see ch. 21-02.

Notes to Decisions

Liability for Value when Contract Defective.

When a municipality has the power to contract but there is a defect in the manner of exercising that power, the municipality can be held liable for the reasonable value of benefits received and retained; where city was acting within its powers to enter into a labor agreement with firefighters but the city did not comply with the statutory procedural requirements necessary to form a contract with a municipality, city’s liability to firefighters was limited to the reasonable value of services rendered. Firefighters Local 642 v. Fargo, 321 N.W.2d 473, 1982 N.D. LEXIS 289 (N.D. 1982).

Liability Under Implied Contract.

A municipality may not escape liability for benefits received merely because the methods by which the services were obtained were procedurally defective. Grand Forks County v. Grand Forks, 123 N.W.2d 42, 1963 N.D. LEXIS 104 (N.D. 1963).

40-01-07. Property exempt from taxation and sale on execution.

Lands, houses, moneys, claims receivable, and property and assets of every kind and description belonging to a municipality shall be exempt from taxation and from sale on execution.

Source: S.L. 1887, ch. 73, art. 18, § 3; R.C. 1895, § 2335; R.C. 1899, § 2335; S.L. 1905, ch. 62, § 189; R.C. 1905, § 2829; C.L. 1913, § 3758; R.C. 1943, § 40-0107.

Collateral References.

Exemption from taxation of municipally owned or operated stadium, auditorium, and similar property, 16 A.L.R.2d 1376.

Land acquired by taxing unit by eminent domain as subject to taxation by another taxing unit, 45 A.L.R.2d 522.

Constitutional provision as to exemption from taxation of specified property, purposes, or uses as restricting legislative power to exempt public property, 61 A.L.R.2d 1031.

Municipal property as subject to mechanic’s lien, 51 A.L.R.3d 657.

40-01-08. Removal of building when taxes and special assessments or share of bonded indebtedness are due — Lien — Penalty.

No person may remove a building from any lot or tract of land in any municipality, unless it is assessed as personalty or exempt from taxation, until after the taxes and special assessments then due have been paid, nor until the owner shall have paid into the sinking fund for the retirement of any bonded indebtedness of the municipality an amount equal to the just share of the tax which would then be required against the property in the municipality to pay the principal outstanding, less amount in sinking funds, of the bonded indebtedness of the municipality. The phrase “taxes and special assessments then due” means all taxes and special assessments that have been levied plus a pro rata estimated tax for the current assessment year. For property classified as residential, “special assessments then due” means the sum of the installments of special assessments certified to the county auditor for extension on the tax list plus the pro rata installment of the special assessment to be certified in the current assessment year. If the building is removed without the payment of the taxes and special assessments and pro rata share of bonded indebtedness, the taxes, special assessments, and pro rata share of bonded indebtedness shall be a lien on the building notwithstanding its removal as well as upon the lot, lots, tract, or tracts of land from which the building was removed. This section does not apply where a building is removed to permit the erection or installation of improvements equal or greater in value than the building removed. Any person violating the provisions of this section is guilty of a class A misdemeanor.

Source: S.L. 1931, ch. 200, § 1; R.C. 1943, § 40-0108; S.L. 1953, ch. 254, § 1; 1957 Supp., § 40-01-08; S.L. 1975, ch. 106, § 452; 1987, ch. 487, § 1.

40-01-09. Official newspaper of municipality.

The official newspaper as chosen by the electors of the county shall be the official newspaper of the municipality in which it is published, and such official notices and legal publications as the municipality is required to publish by law shall be published therein. In municipalities where the official newspaper is not published, the governing body of the municipality, annually by resolution at its first meeting in May, or as soon thereafter as practicable, shall designate a newspaper published in the municipality, or if there is not one published, then it shall designate a newspaper which is circulated in the municipality, as the official newspaper of the municipality, including park districts therein, for the publication of notices and legal publications, including legal notices and official statements of the school districts embracing or encompassed by the municipality.

Source: S.L. 1905, ch. 62, § 46; R.C. 1905, § 2677; S.L. 1907, ch. 45, § 43; 1911, ch. 77, § 43; C.L. 1913, §§ 3598, 3813; S.L. 1919, ch. 187, § 5; I.M. November 2, 1920, § 1, S.L. 1921, p. 256; 1925 Supp., § 3176a5; R.C. 1943, § 40-0109; S.L. 1971, ch. 386, § 1.

Cross-References.

Publication fees, see § 46-05-03.

Publications required to be made in official newspaper, see § 46-06-09.

Selection of official newspaper and qualifications, see ch. 46-06.

Notes to Decisions

English-Language Newspaper.

In the absence of a statute to the contrary, the requirement of publication of legal notices in a newspaper means a newspaper published in the English language. Reuter v. Dickinson Bldg. & Loan Ass'n, 63 N.D. 673, 249 N.W. 778, 1933 N.D. LEXIS 223 (N.D. 1933).

Time of Designation.

The time direction contained in this statute is directory only, and designation of official city paper made in October, instead of May, is valid. Kerlin v. Devils Lake, 25 N.D. 207, 141 N.W. 756, 1913 N.D. LEXIS 119 (N.D. 1913).

40-01-09.1. Publication of city government proceedings — Electorate to decide.

Beginning with the 1996 biennial municipal elections, and every four years thereafter, all cities in North Dakota, regardless of their form of government, must put on the ballot the question of whether the minutes of its governing body shall be published in its official newspaper. If voters approve publication, the governing body shall, within seven days after each of its meetings, give its official newspaper, for publication, the complete minutes, or a complete summary showing the substantive actions taken at the meeting.

Roll call votes must be published, but may be indicated as “unanimous” when appropriate. A list of the individual checks written by the city and approved by the governing body, showing the payee and the amount of each check, must be published. However, employee salary checks need not be published if the governing body elects to publish an annual salary schedule for each employee. When applicable, these minutes may be labeled as being published subject to the governing body’s review and revision. The minutes shall continue to be published until disapproved at a succeeding quadrennial election.

Source: I.M. approved November 8, 1994, S.L. 1995, ch. 637, § 1.

Note.

This section was created by an initiated measure approved by the people at the general election on November 8, 1994.

40-01-10. Certificate of publication filed in auditor’s office — Conclusive evidence — When bill for publication audited.

After any ordinance, notice, resolution, or other proceeding has been published, a copy of the publication, together with the affidavit of publication stating the length of time it has been published, shall be filed with the city auditor. Such affidavit shall be conclusive evidence of the publication. The bill for the publication shall not be audited until such affidavit is filed.

Source: S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, § 2147; R.C. 1899, § 2147; S.L. 1905, ch. 62, § 44; R.C. 1905, § 2675; S.L. 1907, ch. 45, §§ 29, 44; 1911, ch. 77, §§ 29, 44; C.L. 1913, §§ 3596, 3799, 3814; S.L. 1917, ch. 74, § 1; 1925 Supp., § 3799; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-0110; S.L. 1967, ch. 323, § 101.

40-01-11. Publication by a city or park district in which no official newspaper is published.

Whenever any ordinance, notice, or other instrument is required by law to be published in a city or park district in which no official newspaper is published, such publication may be made or such notice given by publication of such ordinance, notice, or other instrument in the official newspaper designated pursuant to section 40-01-09. In a county in which no newspaper is published, any notice required by law to be published may be published in a newspaper printed in an adjoining county and having a general circulation in said county.

Source: Pol. C. 1877, ch. 24, § 22; S.L. 1887, ch. 106, § 1; R.C. 1895, § 2365, subs. 18; S.L. 1897, ch. 148, § 1, subs. 18; R.C. 1899, § 2365, subs. 18; S.L. 1905, ch. 62, § 45; 1905, ch. 186, § 1, subs. 18; R.C. 1905, §§ 2676, 2864, subs. 18; S.L. 1907, ch. 268, § 1, subs. 18; 1913, ch. 291, § 1, subs. 18; C.L. 1913, §§ 3597, 3861, subs. 18; R.C. 1943, § 40-0111; S.L. 1967, ch. 323, § 102; 1971, ch. 386, § 2.

Cross-References.

Park district publications required, see §§ 40-49-13, 40-49-14.

40-01-12. Claims and accounts against municipalities audited.

No account or claim against a municipality to be paid from any fund, including a municipal utilities fund, shall be allowed by the governing body thereof until a full itemized statement in writing has been filed with the governing body or unless otherwise authorized by the governing body pursuant to contract or other action. The governing body, in its discretion, may require the filing of any additional information which it may deem necessary to the proper understanding and audit of any claim or account and it may require the filing of a sworn statement in such form as it may prescribe. Every account or claim which is allowed by the governing body shall be shown in the minutes of the proceedings of the governing body except that wages and salaries of persons employed by the city may be consolidated and allowed in one order as provided by subsection 15 of section 40-16-03 and reference made in the proceedings of the governing body to the payroll record certified to the city auditor.

Source: Pol. C. 1877, ch. 24, § 25; R.C. 1895, § 2368; R.C. 1899, § 2368; R.C. 1905, § 2867; C.L. 1913, § 3866; R.C. 1943, § 40-0112; S.L. 1949, ch. 256, § 1; 1957 Supp., § 40-0112; S.L. 1959, ch. 300, § 1; 1969, ch. 365, § 1; 1981, ch. 91, § 29.

40-01-13. Payment of accounts by municipality.

No account or claim shall be paid by a municipality unless the same has been audited and allowed by the governing body thereof. Approval by the governing body shall be recorded in the record of its proceedings and this shall be sufficient to indicate approval without requiring a majority of the members of the governing body to sign or initial the voucher or order for payment. No moneys shall be drawn from the treasury of a municipality except upon a warrant from the auditor thereof signed by the executive officer of the municipality and attested by its auditor or clerk.

Source: Pol. C. 1877, ch. 24, § 26; R.C. 1895, § 2369; R.C. 1899, § 2369; R.C. 1905, § 2868; C.L. 1913, § 3867; R.C. 1943, § 40-0113; S.L. 1975, ch. 366, § 4.

40-01-14. Office of municipality located in more than one county — Form of official proceeding — Seal.

The officers of a municipality which consists of territory located in more than one county may maintain an office for the performance of their duties in any portion of the municipality. All official proceedings shall be headed with the name of the municipality and of each county of which a portion is embraced within such corporate limits and the name of the state. The official seal which may be used by such municipality shall contain all of such names.

Source: S.L. 1911, ch. 314, § 6; C.L. 1913, § 3937; R.C. 1943, § 40-0114; S.L. 1973, ch. 80, § 9.

40-01-15. Assessors where municipality is in more than one county — Powers and duties of assessors.

In any municipality which contains territory located in more than one county, an assessor shall be elected or appointed in accordance with the law applicable to such form of municipality for that portion of the municipality situated in each county. Such assessor must be a resident of the county in which the assessor is to act and shall have the same powers and duties as an assessor in a municipality situated within the limits of one county.

Source: S.L. 1907, ch. 266, § 3; 1911, ch. 314, § 7; C.L. 1913, §§ 3564c, 3938; R.C. 1943, § 40-0115.

40-01-16. Duty of auditor relating to assessments in municipality located in more than one county.

The auditor of a municipality embracing territory in more than one county shall transmit the appropriate assessment books, with a certified copy of the minutes showing the proceedings of the board of equalization, to the county auditor of each county in which the municipality is situated. The auditor shall apportion correctly the amount of any tax levy to be certified to each county in accordance with the valuations as determined finally by the equalization board.

Source: S.L. 1907, ch. 266, § 4; 1911, ch. 314, § 8; C.L. 1913, §§ 3564d, 3939; R.C. 1943, § 40-0116; S.L. 1967, ch. 323, § 103.

40-01-17. County treasurers’ duties relating to municipality located in more than one county.

If a municipality contains territory located in more than one county, the county treasurer of each county in which such municipality is located shall perform the same duties in relation to all property returned as assessed by the municipality in the county of which the treasurer is an officer as the treasurer performs with relation to property situated in a municipality wholly within such county.

Source: S.L. 1907, ch. 266, § 5; 1911, ch. 314, § 9; C.L. 1913, §§ 3564e, 3940; R.C. 1943, § 40-0117.

40-01-18. Other provisions applicable to municipalities situated in more than one county.

The holding of elections, organization of the board of elections, the election and term of office of the original officers, and the powers and duties of officers of a city embracing territory in more than one county shall be governed by the provisions of this title relating to cities under the council form of government, or to cities under the commission system of government, as the case may be.

Source: S.L. 1911, ch. 314, §§ 3, 5, 10; C.L. 1913, §§ 3934, 3936, 3941; R.C. 1943, § 40-0118; S.L. 1967, ch. 323, § 104.

40-01-19. Provisions of title shall apply to all cities.

All cities in North Dakota shall be governed by the provisions of this title.

Source: S.L. 1905, ch. 62, § 7; R.C. 1905, § 2638; C.L. 1913, § 3559; R.C. 1943, § 40-0119.

40-01-20. Daylight saving time prohibited.

No city or other political subdivision within the state shall adopt daylight saving time or any other seasonal standard of time which varies from the time in effect in such city or political subdivision during the greater portion of the year. All ordinances, resolutions, or other enactments, whether enacted prior to or subsequent to the effective date of this section, are hereby nullified.

Source: S.L. 1961, ch. 272, § 1; 1967, ch. 323, § 105.

40-01-21. Removal of city advisory or policy decisionmaking members.

The executive officer of a city and a sixty percent majority of the members-elect of a city’s governing body at a regular meeting of such body may remove any member of an appointive agency, board, or commission which has spending, borrowing, or eminent domain powers and acts in an advisory capacity or assists in policy decisionmaking.

Source: S.L. 1975, ch. 367, § 1.

40-01-22. Antitrust immunity of cities and city governing bodies.

All immunity of the state from the provisions of the Sherman Antitrust Act [Act July 2, 1890, c. 647; 26 Stat. 209; 15 U.S.C. 1 et seq.] is hereby extended to any city or city governing body acting within the scope of the grants of authority contained in sections 40-05-01, 40-05-02, and 40-05.1-06. When acting within the scope of the grants of authority contained in sections 40-05-01, 40-05-02, and 40-05.1-06, a city or city governing body shall be presumed to be acting in furtherance of state policy.

Source: S.L. 1983, ch. 454, § 1.

40-01-23. Authorization to organize and participate in an organization of city governments.

  1. Cities incorporated under the statutes of North Dakota are hereby authorized upon motion of the city governing body to organize and participate in an organization of city governments.
  2. The organization or organizations authorized hereunder must be organized pursuant to chapter 10-33.

Source: S.L. 1989, ch. 488, § 1; 1997, ch. 105, § 8.

40-01-24. Firefighters may solicit charitable contributions from motorists.

Notwithstanding section 39-10-34 or any other provision of law, a city, by resolution, may permit permanent, on-duty or off-duty, full-time firefighters employed by the city or volunteers serving the city to solicit charitable contributions from motorists under the following conditions:

  1. The solicitation is limited to one charitable organization annually which is qualified under section 501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)] and is registered under state law.
  2. The solicitation is limited to three days in the calendar year.
  3. The charitable organization provides the city proof of commercial general liability insurance against claims for bodily injury and property damage that may occur on the public streets, roads, or right of ways as a result of the actions of those soliciting.

Source: S.L. 2011, ch. 293, § 1.

CHAPTER 40-01.1 Local Governance Advisory Study

40-01.1-01. Advisory study of local governance options.

An advisory study committee may be established under this chapter to provide local citizens and leaders with the means for fully and adequately studying options available for positioning their local governments for effective, creative, and efficient service in the future, in a manner suited to the economic, social, geographic, demographic, and other circumstances influencing the needs and resources of local communities. An advisory study committee is encouraged to prepare a comprehensive program for the performance of local government functions and the furnishing of local government services within the jurisdiction of the governing body or cooperating governing bodies that established the committee. In its study, the committee may consider:

  1. The need for maintaining citizen access to, control of, and participation in local government;
  2. The existing land use within the area, including the location of highways and natural geographic barriers to, and routes for, transportation;
  3. The need for organized local government functions, services, and controls; the present cost and adequacy of local government functions, services, and controls; probable future needs for those functions, services, and controls; and the probable effect of alternative courses of action on the cost and adequacy of local government functions, services, and controls;
  4. The trends in population density and distribution, and the potential or likelihood for significant growth or decline;
  5. The tax base and other factors bearing on the capacity for local government to provide essential functions and services necessary to the general welfare of local citizens;
  6. The boundaries of existing units of local government;
  7. Data necessary for analyzing the strengths, weaknesses, challenges, and opportunities that are unique to the community; and
  8. Other factors that may affect the provision of local government functions, services, and controls.

Source: S.L. 1993, ch. 401, § 2.

40-01.1-02. Local advisory study committee.

  1. The governing body or electors of a county, city, city park district, township, school district, or any other political subdivision of this state may establish an advisory committee to study the existing form and powers of that political subdivision for comparison with other forms and powers available under the laws of this state. A local advisory study committee is established:
    1. By a majority vote of the governing body; or
    2. By a petition signed by ten percent or more of the total number of qualified electors of the political subdivision voting for governor at the most recent gubernatorial election and submitted to the governing body.
  2. The governing body shall appoint the members of the advisory study committee and set the duration of the committee. The members are not entitled to receive compensation, but may receive actual and necessary expenses incurred in the performance of official duties as determined by the governing body.
  3. The governing body may provide office and meeting space and legal, clerical, facilitation, training, and other assistance to the study committee, and may appropriate funds in its final budget, or expend any unexpended balances in its general fund otherwise designated for current expenditure, for the necessary expenses of the advisory study committee. The committee, with the approval of the governing body, may:
    1. Employ and fix the compensation and duties of necessary staff;
    2. Contract and cooperate with other individuals and public or private agencies considered necessary for assistance, including institutions of higher education;
    3. Establish advisory subcommittees that may include persons who are not members of the study committee;
    4. Hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion of the committee’s purpose, progress, conclusions, and recommendations;
    5. Cooperate with a like committee established pursuant to this section by another political subdivision in the conduct of the study. A cooperative study does not preclude a study committee from making separate recommendations to the governing body; and
    6. Do any other act consistent with and reasonably required to perform its advisory function.

Source: S.L. 1993, ch. 401, § 2; 2009, ch. 346, § 1.

40-01.1-03. Cooperative advisory study committee.

  1. The governing bodies of any two or more political subdivisions, including any combination of counties, cities, city park districts, townships, school districts, or other political subdivisions, may establish an advisory committee to study the potential for cooperative or combined efforts for providing local government functions and services. A cooperative advisory study committee is established:
    1. By execution of a joint powers agreement between participating political subdivisions or by joint resolution pursuant to separate majority votes of each participating governing body; or
    2. By petitions signed by ten percent or more of the total number of qualified electors of each affected political subdivision voting for governor at the most recent gubernatorial election and submitted to the governing bodies.
  2. The composition and duration of the advisory study committee is as prescribed in the joint powers agreement, resolutions of the governing bodies, or petitions. However, the governing bodies may agree, by joint resolution, to limit the duration or composition of the advisory study committee created by petition pursuant to subdivision b of  subsection 1. Any vacancy may be filled as prescribed in the agreement, resolution, or petitions or, if not prescribed, by the governing body that was represented by the person vacating the position.
  3. A governing body may agree to provide office and meeting space and legal, clerical, facilitation, training, and other assistance to the study committee, and may appropriate funds in its final budget, or expend any unexpended balances in its general fund otherwise designated for current expenditure, for the necessary expenses of the advisory study committee. The committee, with the approval of the governing body, may:
    1. Employ and fix the compensation and duties of necessary staff;
    2. Contract and cooperate with other individuals and public or private agencies considered necessary for assistance, including institutions of higher education;
    3. Establish advisory subcommittees that may include persons who are not members of the study committee;
    4. Hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion of the committee’s purpose, progress, conclusions, and recommendations; and
    5. Do any other act consistent with and reasonably required to perform its advisory function.

Source: S.L. 1993, ch. 401, § 2.

40-01.1-04. Advisory recommendations.

A local or cooperative advisory study committee established for one or more political subdivisions may recommend that a local governing body or the electors pursue any course of action permitted by law or home rule charter for that political subdivision. The committee may recommend:

  1. With respect to a county:
    1. Execution of a joint powers agreement between the county and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, or an agreement between the county and a tribal government pursuant to chapter 54-40.2.
    2. Exercise of the county’s general authority to contract pursuant to section 11-10-01 and any other law, including service agreements with public or private parties under the terms and conditions of the agreements.
    3. Combination or separation of any elective or appointive county office and corresponding functions, or redesignation of any county office as elective or appointive, pursuant to chapter 11-10.2.
    4. Change in the number of county commissioners pursuant to chapter 11-12.
    5. Establishment of a county home rule charter commission for initiating the adoption of a home rule charter or the amendment or repeal of a home rule charter pursuant to chapter 11-09.1, or the adoption, amendment, or repeal of ordinances for implementing a home rule charter. The recommendation may include a specific nonbinding proposal or draft for a home rule charter or amendment to a home rule charter.
    6. Adoption of the consolidated office form of county government pursuant to chapter 11-08.
    7. Adoption of the county manager form of county government pursuant to chapter 11-09.
    8. Use of other statutory tools relating to social and economic development, land use, transportation and roads, health, law enforcement, administrative and fiscal services, recording and registration services, educational services, environmental quality, water, sewer, solid waste, flood relief, parks and open spaces, hospitals, public buildings, or other county functions or services, including creation of cooperative county job development authorities pursuant to section 11-11.1-03, multicounty health units pursuant to chapter 23-35, regional planning and zoning commissions pursuant to section 11-35-01, boards of joint county park districts pursuant to chapter 11-28 or a combination of boards of park commissioners with a city pursuant to chapter 40-49.1, or human service zones pursuant to chapter 50-01.1.
    9. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    10. Sharing of elective or appointive county officers with other counties, cities, or other political subdivisions pursuant to chapter 11-10.3.
    11. Initiation of the multicounty home rule charter process or the amendment or repeal of a multicounty home rule charter pursuant to section 11-09.1-04.1, or the adoption, amendment, or repeal of ordinances to implement the charter. The recommendation may include a specific nonbinding proposal or draft for a multicounty home rule charter.
    12. Initiation of the county-city home rule process or the amendment or repeal of a county-city home rule charter pursuant to chapter 54-40.4, or the adoption, amendment, or repeal of ordinances to implement the charter. The recommendation may include a specific nonbinding proposal or draft for a county-city home rule charter.
    13. Transfer of a power or function of another political subdivision to the county pursuant to chapter 54-40.5.
    14. Creation of a county consolidation committee pursuant to chapter 11-05.1.
    15. That any other action be taken that is permitted by law.
    16. That no action be taken.
  2. With respect to a city:
    1. Execution of a joint powers agreement between the city and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, or an agreement between the city and a tribal government pursuant to chapter 54-40.2.
    2. Exercise of the city’s general authority to contract pursuant to section 40-05-01 and any other law, including service agreements with public or private parties under the terms and conditions of the agreements.
    3. Combination of city officers pursuant to section 40-14-04 or 40-15-05 or the sharing of officers with other cities, counties, or other political subdivisions pursuant to chapter 11-10.3.
    4. An increase or decrease in the number of members of the governing body of a city pursuant to section 40-06-09.
    5. Establishment of a city home rule charter commission for initiating the adoption of a home rule charter or the amendment or repeal of a home rule charter pursuant to chapter 40-05.1, or the adoption, amendment, or repeal of ordinances for implementing a home rule charter. The recommendation may include a specific nonbinding proposal or draft for a city home rule charter or amendment to a home rule charter.
    6. Adoption of the commission form of city government pursuant to chapter 40-04.
    7. Adoption of the modern council form of city government pursuant to chapter 40-04.1.
    8. Adoption of the city manager plan pursuant to chapter 40-10.
    9. Sharing an appointive city officer and function with another city, the county, or another political subdivision pursuant to chapter 11-10.3.
    10. Initiation of the multicity home rule process or the amendment or repeal of a multicity home rule charter pursuant to section 40-05.1-05.1, or the adoption, amendment, or repeal of ordinances to implement the charter. The recommendation may include a specific nonbinding proposal or draft for a multicity home rule charter.
    11. Initiation of the county-city home rule process or the amendment or repeal of a county-city home rule charter pursuant to chapter 54-40.4, or the adoption, amendment, or repeal of ordinances to implement the charter. The recommendation may include a specific nonbinding proposal or draft for a county-city home rule charter.
    12. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    13. Use of other statutory tools for social and economic development, land use, transportation, health, fire and police protection, street construction and maintenance, assessment, financing, accounting, legal, environmental quality, water, sewer, solid waste, flood relief, parks and open spaces, hospitals, public buildings, or other city functions or services, including the creation of cooperative city job development authorities pursuant to section 40-57.4-03.
    14. Transfer of a power or function of the city to the county pursuant to chapter 54-40.5.
    15. Consolidation of cities pursuant to chapter 40-53.2.
    16. Dissolution of a city pursuant to chapter 40-53.1.
    17. That any other action be taken that is permitted by law.
    18. That no action be taken.
  3. With respect to a township:
    1. Execution of a joint powers agreement between the township and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, or an agreement between the township and a tribal government pursuant to chapter 54-40.2.
    2. Exercise of the township’s general authority to contract pursuant to section 58-03-01 and any other law, including service agreements with public or private parties under the terms and conditions of the agreements.
    3. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    4. Combination of the offices of township clerk and treasurer pursuant to section 58-05-02 or the sharing of officers with other townships or other political subdivisions pursuant to chapter 11-10.3.
    5. An increase in the number of board of township supervisors from three to five pursuant to section 58-04-02.1.
    6. Contract with the county, another political subdivision, or any individual for assessor services pursuant to section 58-05-02.
    7. Consolidation of boards of township officers pursuant to chapter 58-05.1.
    8. Transfer of a power or function of the township to the county pursuant to chapter 54-40.5.
    9. Creation of an organized civil township pursuant to chapter 58-02.
    10. Division or annexation of a township pursuant to chapter 58-02.
    11. Dissolution of the township pursuant to chapter 58-02.
    12. That any other action be taken that is permitted by law.
    13. That no action be taken.
  4. With respect to a city park district:
    1. Execution of a joint powers agreement between the city park district and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, or an agreement between the city park district and a tribal government pursuant to chapter 54-40.2.
    2. Exercise of the city park district’s general authority to contract pursuant to section 40-49-04 and any other law, including service agreements with public or private parties under the terms and conditions of the agreements.
    3. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    4. An increase or decrease in the number of board members pursuant to sections 40-49-07.1 and 40-49-07.2.
    5. Transfer of a power or function of the city park district to the county pursuant to chapter 54-40.5.
    6. Combination of the city board of park commissioners with other city or county boards of park commissioners pursuant to chapter 40-49.1.
    7. Sharing of officers with other city park districts or other political subdivisions pursuant to chapter 11-10.3.
    8. Dissolution of the city park district pursuant to sections 40-49-07.1 and 40-49-07.2.
    9. That any other action be taken that is permitted by law.
    10. That no action be taken.
  5. With respect to a school district:
    1. Execution of a joint powers agreement between the school district and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, including the exercise of the general powers to make contract for joint educational endeavors, or an agreement between the school district and a tribal government pursuant to chapter 54-40.2.
    2. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    3. An increase or decrease in the number of school board members pursuant to section 15.1-09-01.
    4. Sharing of officers with other school districts or other political subdivisions pursuant to chapter 11-10.3.
    5. School district annexation or reorganization.
    6. Transfer of a power or function of the school district to the county pursuant to chapter 54-40.5.
    7. That any other action be taken that is permitted by law.
    8. That no action be taken.
  6. With respect to other political subdivisions, including rural ambulance service districts, rural fire protection districts, irrigation districts, hospital districts, soil conservation districts, and recreation service districts:
    1. Execution of a joint powers agreement between the political subdivision and one or more other political subdivisions or the state for the cooperative or joint administration of any service or function pursuant to chapter 54-40.3 or as otherwise specifically provided by law, or an agreement between the political subdivisions and a tribal government pursuant to chapter 54-40.2.
    2. Participation in a community or leadership development, assessment, education, planning, or training program offered by any public or private agency, institution, or organization.
    3. Sharing of officers with other political subdivisions pursuant to chapter 11-10.3.
    4. Transfer of a power or function of the political subdivision to the county pursuant to chapter 54-40.5.
    5. That any other action be taken that is permitted by law.
    6. That no action be taken.

Source: S.L. 1993, ch. 401, § 2; 1999, ch. 164, § 9; 1999, ch. 242, § 4; 1999, ch. 278, § 65; 2019, ch. 391, § 44, effective January 1, 2020.

CHAPTER 40-02 Incorporation of Municipalities in Unorganized Territory

40-02-01. Requisites for incorporation as city.

Any contiguous territory in this state, not exceeding four square miles [1036.00 hectares] in area, not already included within the corporate limits of any incorporated municipality, may become incorporated as a city whether such territory is located in one or more counties, under the following conditions:

  1. If the territory has residing therein a population of not more than five hundred inhabitants, it may become incorporated as a city under the council or modern council form of government. If the territory has residing therein a population of not less than five hundred inhabitants, it may become incorporated as a city under the council or modern council form of government, or as a city under the commission system of government.
  2. If the proposed municipal corporation has, in the view of the board of county commissioners of the county in which the proposed municipal corporation is located, all the qualities necessary to ensure continued viability as a functioning unit of municipal government.

Source: S.L. 1887, ch. 73, art. 1, § 1; R.C. 1895, § 2108; R.C. 1899, § 2108; S.L. 1905, ch. 62, §§ 1, 4; R.C. 1905, §§ 2632, 2635; S.L. 1907, ch. 45, § 1; 1907, ch. 266, § 1; 1911, ch. 77, § 1; 1911, ch. 314, § 1; 1913, ch. 72, § 1; C.L. 1913, §§ 3552, 3556, 3564a, 3771, 3932; S.L. 1915, ch. 66, § 1; 1921, ch. 31, § 1; 1925 Supp., §§ 3552, 3771; R.C. 1943, § 40-0201; S.L. 1967, ch. 323, § 106; 1981, ch. 405, § 1.

Notes to Decisions

Cities Are Creatures of Statute.

Cities are incorporated through general law of the legislature and are mere creatures of the statute. Waslien v. Hillsboro, 48 N.D. 1113, 188 N.W. 738, 1922 N.D. LEXIS 149 (N.D. 1922).

40-02-02. Census required.

Prior to the commencement of any proceedings to incorporate territory as a municipality, the persons intending to submit the petition for incorporation shall cause a census of the resident population of the territory to be taken not more than sixty days previous to the time when the petition is submitted to the board of county commissioners as provided in this chapter. The census shall show the name of every elector and of every head of a family residing within the territory on that day and the number of persons then belonging to that family, and the census shall be verified by the affidavit of the person taking it.

Source: Pol. C. 1877, ch. 24, § 2; R.C. 1895, § 2345; S.L. 1897, ch. 150, § 1; R.C. 1899, § 2345; R.C. 1905, § 2844; S.L. 1911, ch. 314, § 2; C.L. 1913, §§ 3841, 3933; R.C. 1943, § 40-0202; S.L. 1981, ch. 405, § 2.

40-02-03. Survey required.

The persons intending to make application for the incorporation of a municipality as provided in this chapter shall cause to be made an accurate survey and map of the territory intended to be embraced within the limits thereof. The survey shall be made by a practical surveyor and shall show the courses and distances of the boundaries and the quantity of land contained therein. The accuracy of such survey and map shall be verified by the affidavit of the surveyor written thereon or annexed thereto.

Source: Pol. C. 1877, ch. 24, § 1; R.C. 1895, § 2344; R.C. 1899, § 2344; R.C. 1905, § 2843; S.L. 1911, ch. 314, § 2; C.L. 1913, §§ 3840, 3933; R.C. 1943, § 40-0203.

40-02-04. Survey, map, and census subject to examination — Notice.

The survey, map, and census required under the provisions of this chapter, when completed and verified, shall be left for a period of not less than thirty days at some convenient place within the territory described therein for examination by those having any interest in the application for incorporation. There shall be attached to such survey, map, and census a notice which explains:

  1. The purpose of the map, survey, and census.
  2. That a petition for incorporation is to be circulated and will be submitted to the board of county commissioners at a time certain as specified in the notice.
  3. That upon receipt of the petition the board of county commissioners will designate a time and place to consider the petition.
  4. That a notice of the time and place for the hearing will be published once a week for two weeks prior to the hearing in the official county newspaper and in other newspapers as the board of county commissioners may deem appropriate.

Copies of such notice, together with a statement showing where the survey, map, and census may be examined, shall be posted for at least thirty days in three conspicuous and public places within the territory to be affected.

Source: Pol. C. 1877, ch. 24, § 3; R.C. 1895, § 2346; R.C. 1899, § 2346; R.C. 1905, § 2845; S.L. 1911, ch. 314, § 2; C.L. 1913, §§ 3842, 3933; R.C. 1943, § 40-0204; S.L. 1981, ch. 405, § 3.

Notes to Decisions

Failure to Give Notice.

Where notice is not given in conformance with this section the board acquires no jurisdiction in the matter. State ex rel. Brunette v. Sutton, 71 N.D. 530, 3 N.W.2d 106, 1942 N.D. LEXIS 87 (N.D. 1942).

Theory of Statute.

The theory of this statute is that every person interested shall have a right to know what is being attempted so he may be heard respecting anything that is done. State ex rel. Brunette v. Sutton, 71 N.D. 530, 3 N.W.2d 106, 1942 N.D. LEXIS 87 (N.D. 1942).

40-02-05. Petition for incorporation — Contents — Census and survey to accompany — Hearing — Notice.

A petition for the incorporation of a municipality under this chapter shall be addressed to the board of county commissioners of the county in which the proposed municipality is located and if such municipality is located in more than one county, to the board of county commissioners of the county wherein the greater part of the territory is situated, and shall be signed by not less than one-third of the qualified electors residing within the territory described in such petition, and by the owners of not less than fifty percent in assessed value of the property located within the territory described in such petition.

  1. The petition shall show:
    1. The boundaries of the proposed municipality, and the assessed valuation of all property located within such boundaries.
    2. The number of inhabitants residing within such boundaries.
    3. The name of the proposed municipality, which shall be different from that of every other municipality in this state.
    4. A request that the question of incorporating the territory described in the petition as a city under the council form of government or a city under the commission system of government, as the case may be, be submitted to the qualified electors residing within the territory.
  2. The petition, when submitted, shall be accompanied by:
    1. An incorporation plan showing how municipal services, including fire and police protection, street construction and maintenance, sewers, water, garbage disposal, planning, zoning, accounting, assessment, financing, and legal services, will be provided; and
    2. Any other information that may reasonably be required by the board of county commissioners to whom the petition is addressed including, but not limited to, population, population density, per capita assessed valuation, proximity to populated areas, likelihood of significant growth, need for services, present cost and adequacy of services, and effect of proposed action and alternative actions on adjacent areas.

The petition shall be filed in the office of the county auditor, accompanied by a verified copy of the census required under this chapter and by a duplicate map of the survey of the proposed municipality, and shall be submitted to the board of county commissioners at the time indicated in the notice described in section 40-02-04 or as soon thereafter as the board can receive and consider the same. The board of county commissioners to whom the petition is addressed shall designate a time and place for consideration of the petition and shall notify the petitioners of that time and place. The petitioners shall then cause a notice containing the substance of the petition, and the time and place it will be heard, to be published once a week for two consecutive weeks in the official county newspaper or newspapers of the county or counties and in other newspapers as deemed appropriate by the board of county commissioners of each county embracing the territory to be incorporated.

Source: Pol. C. 1877, ch. 24, §§ 4, 5; R.C. 1895, §§ 2347, 2348; R.C. 1899, §§ 2347, 2348; S.L. 1905, ch. 62, § 4; R.C. 1905, §§ 2635, 2846, 2847; S.L. 1911, ch. 314, § 3; C.L. 1913, §§ 3556, 3843, 3934; R.C. 1943, § 40-0205; S.L. 1967, ch. 323, § 107; 1981, ch. 405, § 4; 1985, ch. 235, § 62.

40-02-06. Board of county commissioners to consider petition.

Before hearing the petition, the board of county commissioners shall require proof, either by affidavit or by oral examination of witnesses before it, that notice as required by section 40-02-05 was given and that the survey, map, and census were subject to examination in the manner and for the period required by this chapter. All interested persons shall have the opportunity to comment at the hearing. The board shall have the authority to approve or disapprove, with or without amendment, the petition for incorporation. Before taking action on a petition, the board may consider such factors as the permanent nature of the community, the necessity for incorporation shown by the community, the ability of the community to assume municipal responsibilities, and the showing that the burdens and benefits of incorporation will be equal and just.

The board of county commissioners shall make a written record of its findings on each of the assertions contained in the petition and shall provide any interested person with a copy of those findings. If the board is satisfied that the petition should be approved, it shall make an order fixing the time and the places within the boundaries of the proposed municipality at which an election may be held to determine the question of incorporation as requested in the petition. If the territory described in the petition is located in more than one county, the board shall, after consultation with the board of the other county involved, designate a separate election place in each county in which any part of the territory described in the petition is situated. The board shall name the persons to act as judges of the election in each such election place.

Source: Pol. C. 1877, ch. 24, § 5; R.C. 1895, § 2348; R.C. 1899, § 2348; R.C. 1905, § 2847; S.L. 1911, ch. 314, § 3; C.L. 1913, §§ 3844, 3934; R.C. 1943, § 40-0206; S.L. 1981, ch. 405, § 5.

Notes to Decisions

Lack of Jurisdiction.

Where notice is not given in conformance with N.D.C.C. § 40-01-04, the board acquires no jurisdiction over the subject matter. State ex rel. Brunette v. Sutton, 71 N.D. 530, 3 N.W.2d 106, 1942 N.D. LEXIS 87 (N.D. 1942).

40-02-06.1. Appeal of board of county commissioners’ action — Scope of review.

Any final action taken by a board of county commissioners on a petition for incorporation may be appealed to the district court in accordance with the procedure provided in section 28-34-01. The review on appeal extends only to the determination of whether the board of county commissioners has pursued its authority regularly and has not exceeded its jurisdiction or abused its discretion under the provisions of this chapter.

Source: S.L. 1981, ch. 405, § 10; 1989, ch. 83, § 13.

40-02-07. Notice of election.

The board of county commissioners to which a petition is submitted under this chapter shall give notice of the election on the question whether or not the municipality described in the petition shall be organized. The notice shall be published in one issue of a newspaper or newspapers published within the territory described in the petition, and such publication shall be made at least ten days prior to the date set for the election. If no newspaper is published within the territory, the notice shall be published in the official county newspaper or newspapers and in other newspapers as deemed appropriate by the board of county commissioners of each county embracing the territory to be incorporated.

Source: Pol. C. 1877, ch. 24, § 6; R.C. 1895, § 2349; R.C. 1899, § 2349; R.C. 1905, § 2848; S.L. 1911, ch. 314, § 3; C.L. 1913, §§ 3845, 3934; R.C. 1943, § 40-0207; S.L. 1967, ch. 158, § 91; 1981, ch. 405, § 6.

40-02-08. Polling hours at election on question of incorporation.

At the election called to vote on the question of incorporation of a municipality under this chapter, the polls shall be opened at nine a.m. on the day specified in the notice and shall be kept open until seven p.m. At such election, the voters first shall proceed to the election of three inspectors, who, after being chosen and qualified and one of their number elected clerk, without delay shall proclaim that the polls are open.

Source: Pol. C. 1877, ch. 24, §§ 7, 8; R.C. 1895, §§ 2350, 2351; R.C. 1899, §§ 2350, 2351; R.C. 1905, §§ 2849, 2850; C.L. 1913, §§ 3846, 3847; S.L. 1937, ch. 181, § 1; R.C. 1943, § 40-0208.

Notes to Decisions

Late Opening of Polls.

Opening the polls at a later hour than fixed by statute is an irregularity that does not render the election void, in the absence of a showing of fraud or prejudice to qualified electors. Williams v. Sherwood, 51 N.D. 520, 200 N.W. 782, 1924 N.D. LEXIS 60 (N.D. 1924).

40-02-09. Form of ballot.

The ballots to be used at an election to pass upon the question of the organization of a municipality under the provisions of this chapter shall be in substantially the following form:

Shall (city under the council form of government, or city under the commission system of government, as the case may be) be organized out of the following described territory (describe territory involved)? Yes No

Click to view

Source: Pol. C. 1877, ch. 24, § 9; S.L. 1893, ch. 129, § 1; R.C. 1895, § 2352; R.C. 1899, § 2352; R.C. 1905, § 2851; C.L. 1913, § 3848; R.C. 1943, § 40-0209; S.L. 1967, ch. 323, § 108.

40-02-10. Election returns — To whom made — Duty of board of county commissioners.

The election officials acting in each place in which votes are cast in an election held under this chapter shall return to the board of county commissioners which ordered the election a verified statement of the results of the election showing the number of votes cast for and against incorporation at their polling place. The returns shall be verified by the affidavit of the election officials. The returns shall be canvassed by the board of county commissioners, and the results of the canvass and of the election shall be entered upon the minutes of the proceedings of such board. If a majority of the votes cast on the question at the election favored incorporation, the board shall make an order declaring that the territory described in the petition has been incorporated as a city under the council form of government or as a city under the commission system of government, as the case may be, by the name described in the petition, stating that name, and shall cause the order to be entered in the minutes of its proceedings. If the territory is located in more than one county, a certified copy of such order shall be submitted immediately to each of the other counties within which a portion of the territory described in the order is situated. The auditor of each county to which a certified copy of the order is submitted shall make a record of the order in the minutes of the board of county commissioners of such county.

Source: Pol. C. 1877, ch. 24, § 9; S.L. 1893, ch. 129, § 1; R.C. 1895, § 2352; R.C. 1899, § 2352; R.C. 1905, § 2851; S.L. 1911, ch. 314, § 4; C.L. 1913, §§ 3848, 3935; R.C. 1943, § 40-0210; S.L. 1967, ch. 323, § 109; 1981, ch. 405, § 7; 1997, ch. 108, § 18; 2017, ch. 154, § 13, effective August 1, 2017.

40-02-11. Division into wards.

If a majority of the votes cast on the question at the election provided for in this chapter favored incorporation as a city, the board of county commissioners that ordered the election shall, if the territory has been incorporated as a city under the council form of government, divide the city into wards. The city may not be divided into wards unless it has more than six hundred inhabitants. If the city has more than six hundred inhabitants, one ward must be formed for each two council members to which the city is entitled. In cities of more than fifteen thousand inhabitants, however, the number of wards is limited to seven originally, and that number may be increased thereafter as provided in this title. Each ward must be formed from contiguous territory, and all wards must be numbered consecutively and must have, as nearly as practicable, the same number of inhabitants. After the election of council members, the governing body of the city shall form or establish wards pursuant to law.

Source: Pol. C. 1877, ch. 24, § 10; R.C. 1895, § 2353; R.C. 1899, § 2353; R.C. 1905, § 2852; C.L. 1913, § 3849; R.C. 1943, § 40-0211; S.L. 1967, ch. 158, § 92; 1967, ch. 323, § 110; 1981, ch. 405, § 8; 1991, ch. 440, § 2; 1997, ch. 108, § 19.

40-02-12. Order of incorporation — Recording — Filing — As evidence.

An order of incorporation of a city under the council form of government, under the provisions of this chapter, as made by the board of county commissioners to which the petition for incorporation is addressed, shall be conclusive evidence of the incorporation of the territory described in the order in all suits by or against the municipality described therein. The board shall cause a certified copy of the order to be filed for record in the office of the recorder of each county affected and a certified copy shall also be filed in the office of the secretary of state.

Source: S.L. 1911, ch. 314, § 4; C.L. 1913, § 3935; R.C. 1943, § 40-0212; S.L. 1967, ch. 323, § 111; 1981, ch. 405, § 9; 2001, ch. 120, § 1.

DECISIONS UNDER PRIOR LAW

Description of Territory.

The incorporation of a village is not invalid because the order of the board of county commissioners declaring the result of the election misdescribed the territory. Billings Sch. Dist. v. Loma Special Sch. Dist., 56 N.D. 751, 219 N.W. 336, 1928 N.D. LEXIS 196 (N.D. 1928).

40-02-13. Procedure in the case of incorporation of city under the commission system of government.

If the municipality organized under the provisions of this chapter is a city under the commission system of government, the board of county commissioners shall make returns to the secretary of state, and a patent shall be issued by the governor in accordance with the applicable provisions of chapter 40-04, and with like effect.

Source: S.L. 1907, ch. 45, § 11; 1911, ch. 77, § 11; C.L. 1913, § 3781; R.C. 1943, § 40-0213.

40-02-14. Board of county commissioners to establish election precincts.

The territory embraced within the boundaries of a municipality organized under this chapter shall be divided by the board of county commissioners which made the order of incorporation into election precincts. If the municipality is situated in more than one county, there shall be at least as many election precincts as there are portions of counties embraced within such municipality.

Source: S.L. 1911, ch. 314, § 5; C.L. 1913, § 3936; R.C. 1943, § 40-0214.

40-02-15. Division of property and indebtedness between municipality and township.

If a municipality is organized under the provisions of this chapter from territory which has been a part of a civil township, any property owned, and any debts owed, by the township prior to the separation shall be divided between the municipality and the township in the proportion which the valuation of the property in the municipality bears to the valuation of the property in the township. The valuations used shall be the valuations as equalized by the board of county commissioners at the last equalization previous to the separation. Real estate which is owned jointly shall belong to the municipality if it is situated therein, and in such case, the municipality shall pay to the township its proportion of the value thereof and shall assume its just proportion of any indebtedness thereon.

Source: S.L. 1907, ch. 264, § 1; C.L. 1913, § 3902; R.C. 1943, § 40-0215.

Notes to Decisions

Purpose of Statute.

This section contemplates equalization of indebtedness and property in the event of division, annexation, or consolidation of a municipal corporation. North Fargo v. Fargo, 49 N.D. 597, 192 N.W. 977, 1923 N.D. LEXIS 70 (N.D. 1923).

40-02-16. Arbitration of differences between township and newly organized municipality upon division of property and indebtedness.

If the officers of a township and of a municipality which has been organized from territory situated therein cannot agree upon the valuation of any real estate, or of any indivisible property which is held jointly, or upon the just apportionment of the joint indebtedness, the officers of the township or municipality, upon five days’ notice of the time and place, may apply to the director of the office of administrative hearings for arbitration of such differences. Thereupon, the director shall appoint three residents of the county, not residents or taxpayers of the municipality or township involved, to act as arbitrators. After being duly sworn to perform the duties imposed upon them, the arbitrators shall view and appraise the property and fix the valuation thereof for the purpose of making the division. If the property to be divided is personal property and no satisfactory arrangement can be made otherwise, it must be sold at public auction to the highest bidder, and the municipality and township may bid at the sale. The township and municipality involved in the arbitration shall share equally in the costs and expenses of the arbitration. The director of the office of administrative hearings shall request payment from the township and municipality and the township and municipality shall pay to the office of administrative hearings both the costs and expenses of the arbitration proceedings and the cost of the services provided by the arbitrators and the director of the office of administrative hearings.

Source: S.L. 1907, ch. 264, § 1; C.L. 1913, § 3902; R.C. 1943, § 40-0216; S.L. 1991, ch. 326, § 152; 2013, ch. 92, § 7.

CHAPTER 40-03 Council Cities, Procedure for Incorporation [Repealed]

[Repealed by S.L. 1967, ch. 323, § 285]

CHAPTER 40-03.1 Change from Council System to Commission System

40-03.1-01. Change from council system of government — Petition required.

Any city which shall have operated for more than six years since the adoption of the city council system of government or since the last election at which the question of changing from the council system was rejected by a vote of the qualified electors, may change its organization thereunder and adopt the city commission form of government. The proceeding to change shall be initiated by a petition asking for such change signed by not less than forty percent of the qualified electors of the city, as determined by the total number of qualified electors voting at the preceding general election. The signatures to such petition need not be appended to a single paper, but one of the signers upon each paper shall make oath before an officer competent to administer oaths that each signature appearing upon such paper is the genuine signature of the person whose name it purports to be. Each petition, in addition to the names of the signers, shall contain the name, address, and age of each petitioner, and the length of the petitioner’s residence in the city. Any petitioner shall be permitted to withdraw that petitioner’s name from a petition within five days after the petition is filed.

Source: S.L. 1961, ch. 271, § 1; 1985, ch. 235, § 63.

DECISIONS UNDER PRIOR LAW

Powers of City Commissioners.

The board of city commissioners of a city having the commission system of government succeeds to the powers possessed by the mayor and the city council in a city having the council form of government. Waslien v. Hillsboro, 48 N.D. 1113, 188 N.W. 738, 1922 N.D. LEXIS 149 (N.D. 1922).

Law Reviews.

Powers and Procedures of City and Village Governing Boards, 31 N.D. L. Rev. 137 (1955).

40-03.1-02. City auditor to pass on sufficiency of petition.

Within thirty days after a petition to change from the council system of government is filed, the city auditor shall examine the petition and ascertain from the voters’ register whether or not the petition is signed by the required number of qualified electors. The city auditor shall attach to the petition the city auditor’s certificate showing the result of the city auditor’s examination, and if the city auditor finds the petition to be insufficient, the city auditor’s certificate shall show the reason for such determination. An insufficient petition may be amended within ten days after the city auditor’s certificate is made. Within thirty days after an amended petition is filed, the city auditor shall make an examination thereof, and if the city auditor’s certificate shows such amended petition to be insufficient, the petition shall be returned to the person filing the same without prejudice to the filing of a new petition. If the city auditor shall find the petition or the amended petition to be sufficient, the city auditor shall place the same with the city auditor’s certificate before the governing body of the municipality.

Source: S.L. 1961, ch. 271, § 2; 1985, ch. 235, § 64.

40-03.1-03. Procedure when petition to change from council system of government is filed — Special election — Ballot.

When a petition to change from the council system of government, together with the city auditor’s certificate of sufficiency, is filed with the governing body of a municipality, the governing body shall call a special election at which only the question of changing from the council system of government will be submitted. The date of such election shall not be less than thirty days nor more than ninety days after the date of the auditor’s certificate has been filed. The election shall be conducted, returns thereof made, and the result thereof declared in all respects as are other city elections. Notice of such election shall be given by the publication of the proposition to be voted upon, the places where the election will be held, and the date of the election, in each newspaper published in the city, not more than twenty days and not less than five days before the date of such election. The ballot to be used at the election provided for in this section shall be in substantially the following form:

Shall the city of change from its organization under the council system of government and become a city under the commission form of government? Yes No

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Source: S.L. 1961, ch. 271, § 3.

CHAPTER 40-03.2 Change from Council System to Modern Council System

40-03.2-01. Change from council system of government — Petition required.

Any city incorporated as a city under the council form of government may change its organization thereunder and adopt the modern council form of government. The proceeding to change shall be initiated by a petition asking for such change signed by not less than one-third of the qualified electors of the city. For the purpose of this section, the term “qualified electors of the city” means the total number of qualified electors voting at the preceding general election of the city. The signatures to such petition need not be contained in a single paper, but one of the signers upon each paper shall make oath before an officer competent to administer oaths that each signature appearing upon such paper is the genuine signature of the person whose name it purports to be. Each petition, in addition to the names of the signers, shall contain the address of each petitioner, and the length of the petitioner’s residence in the city. Any petitioner shall be permitted to withdraw that petitioner’s name from a petition within five days after the petition is filed.

Source: S.L. 1969, ch. 366, § 1; 1985, ch. 235, § 65.

40-03.2-02. City auditor to pass on sufficiency of petition.

Within thirty days after a petition to change from the council system of government is filed, the city auditor shall examine the petition and ascertain from the voters’ register whether or not the petition is signed by the required number of qualified electors. The city auditor shall attach to the petition the city auditor’s certificate showing the result of the city auditor’s examination, and if the city auditor finds the petition to be insufficient the city auditor’s certificate shall show the reason for such determination. An insufficient petition may be amended within ten days after the city auditor’s certificate is made. Within thirty days after an amended petition is filed, the auditor shall make an examination thereof, and if the city auditor’s certificate shows such amended petition to be insufficient, the petition shall be returned to the person filing the same without prejudice to the filing of a new petition. If the city auditor shall find the petition or the amended petition to be sufficient, the city auditor shall place the same with the city auditor’s certificate before the governing body of the municipality.

Source: S.L. 1969, ch. 366, § 2; 1985, ch. 235, § 66.

40-03.2-03. Procedure when petition to change from council system of government is filed — Special election — Ballot.

When a petition to change from the council system of government, together with the city auditor’s certificate of sufficiency, is filed with the governing body of a municipality, the governing body shall call a special election at which only the question of changing from the council system of government will be submitted. The date of such election may not be less than thirty days nor more than ninety days after the date the auditor’s certificate has been filed. The election must be conducted, returns thereof made, and the result thereof declared in all respects as are other city elections. Notice of such election must be given by the publication of the proposition to be voted upon, the places where the election will be held, and the date of the election, in each newspaper published in the city, not more than twenty days and not less than five days before the date of such election. The ballots to be used at the election provided for in this section must be in substantially the following form:

Shall the city of change from its organization under the council system of government and become a city under the modern council form of government with a five-member (or seven-member, nine-member, or eleven-member) council? Yes No

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Source: S.L. 1969, ch. 366, § 3; 1987, ch. 488, § 1.

CHAPTER 40-04 Commission Cities, Incorporation from Organized Territory and Change from Commission System to Council System

40-04-01. Incorporation as commission city.

Any city in this state having a population of not less than five hundred inhabitants may become incorporated as a city under the commission system of government as provided in this section. If one-tenth of the qualified electors of the municipality, based upon the votes cast for the office of governor at the last preceding general election, petition the governing body of the municipality to submit to a vote of the qualified electors the question of whether the city shall become incorporated as a city under the commission system of government, the governing body shall submit the question to the qualified electors, appoint a time when and place or places where the election shall be held, and designate the judges and clerks at the election. The question may not be submitted more than once in every four years.

Source: S.L. 1907, ch. 45, § 1; 1911, ch. 77, § 1; 1913, ch. 72, § 1; C.L. 1913, § 3771; S.L. 1915, ch. 66, § 1; 1925 Supp., § 3771; R.C. 1943, § 40-0401; S.L. 1967, ch. 323, § 112; 1985, ch. 235, § 67.

Collateral References.

Withdrawal of name from petition and time therefor, 27 A.L.R.2d 604.

40-04-02. Notice of election.

Notice of an election to be held under this chapter shall be given by the executive officer of the city by publication in the official newspaper of the city as provided in section 40-01-09 for at least twenty days.

Source: S.L. 1907, ch. 45, § 2; 1911, ch. 77, § 2; C.L. 1913, § 3772; R.C. 1943, § 40-0402; S.L. 1967, ch. 158, § 93; 1977, ch. 375, § 3.

40-04-03. Form of ballot.

The ballots to be used at such election shall be in substantially the following form:

Shall the city of (naming the city) become organized as a city under the commission system of government? Yes No

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Source: S.L. 1907, ch. 45, § 3; 1911, ch. 77, § 3; C.L. 1913, § 3773; R.C. 1943, § 40-0403; S.L. 1967, ch. 323, § 113.

40-04-04. Returns and canvass of election — Certificate to secretary of state — Officers to continue until election.

The officials of an election held under the provisions of this chapter shall make a return of such election to the governing body of the city and such governing body shall canvass such returns and cause the result of the canvass to be entered upon the records of the city. If a majority of the votes cast on the question at such election shall be for city organization under the commission system, the auditor shall certify the adoption of such form of government and a copy of the proceedings concerning the same to the secretary of state together with the result of any special census taken in such city. The city officers then in office shall exercise the powers conferred upon like officers of a city operating under the commission system of government until their successors are elected and qualified.

Source: S.L. 1907, ch. 45, §§ 3, 9, 10; 1911, ch. 77, §§ 3, 9, 10; C.L. 1913, §§ 3773, 3779, 3780; R.C. 1943, § 40-0404; S.L. 1967, ch. 323, § 114; 1973, ch. 80, § 10; 1997, ch. 108, § 20.

40-04-05. Patent issued to city by governor.

Upon the certification of the matters described in section 40-04-04, the government shall issue letters patent, under the great seal of the state, reciting the facts, defining the boundaries of the city, and constituting the city a body corporate and politic by the name of the city of _________ (specifying the name of the city), and declaring that it shall be governed by the provisions of this title applicable to cities under the commission system of government.

Source: S.L. 1907, ch. 45, §§ 3, 9, 10; 1911, ch. 77, §§ 3, 9, 10; C.L. 1913, §§ 3773, 3779, 3780; R.C. 1943, § 40-0405.

40-04-06. Patent to city to be recorded — Use as evidence.

A patent issued by the governor under the provisions of this chapter shall be recorded in the office of the secretary of state. Any patent so issued and recorded and the record thereof, or a certified copy thereof, shall be conclusive evidence in all courts and places of the due incorporation of the city mentioned therein and of all the facts therein recited.

Source: S.L. 1907, ch. 45, § 11; 1911, ch. 77, § 11; C.L. 1913, § 3781; R.C. 1943, § 40-0406; 2021, ch. 85, § 18, effective August 1, 2021.

40-04-07. Special election called to elect city commissioners.

Within twenty days after the issuance of a patent incorporating any city under the provisions of this chapter, the executive officer of the city voting such incorporation shall call a special election for the purpose of electing the first board of city commissioners. The election shall be held as provided in section 40-21-02.

Source: S.L. 1907, ch. 45, § 4; 1911, ch. 77, § 4; C.L. 1913, § 3774; R.C. 1943, § 40-0407; S.L. 1967, ch. 323, § 115.

40-04-08. Change from or to commission system of government — Petition required.

Any city that has operated for more than six years under or since changing from the city commission system of government may change its governmental organization and adopt the city council form of government or the modern council form of government or revert to the city commission form of government. The proceeding to change or revert shall be initiated either by a resolution by the governing body or by a petition asking for such change signed by not less than twenty-five percent of the qualified electors of the city. In no event, however, shall the petition contain less than thirty signatures. In any city having six or more municipal election precincts, not more than twenty percent of the petitioners may reside in any single precinct. For purposes of this section, the term “qualified electors of the city” means the total number of qualified electors voting for the office of the chief executive officer of the city at the preceding city election. The signatures to such petition need not be appended to a single paper, but one of the signers upon each paper shall make oath before an officer competent to administer oaths that each signature appearing upon such paper is the genuine signature of the person whose name it purports to be and that such person purports to be not less than eighteen years of age and a resident of the city. Each petition, in addition to the names of the signers, shall contain the name of the street upon and the number of the house in which each petitioner resides. Any petitioner shall be permitted to withdraw that petitioner’s name from a petition within five days after the petition is filed. If the proceeding to change from or revert to a commission system of government is initiated by petition, the question may not be placed on the ballot more often than every four years.

Source: S.L. 1911, ch. 67, § 5; 1913, ch. 79, § 5; C.L. 1913, § 3839; R.C. 1943, § 40-0408; S.L. 1957, ch. 275, § 1; 1957 Supp., § 40-0408; S.L. 1959, ch. 301, § 1; 1961, ch. 273, § 1; 1965, ch. 285, § 10; 1981, ch. 406, § 1; 1985, ch. 235, § 68.

DECISIONS UNDER PRIOR LAW

Signatures on Petition.

A petition for an election to vote upon the question of whether a city operating under the commission form of government should abandon its organization under the commission system and return to the aldermanic system of city government had to be signed by not less than forty percent of the electors of the city at the time the petition was presented. State ex rel. Alexander v. Evanson, 64 N.D. 603, 255 N.W. 98, 1934 N.D. LEXIS 240 (N.D. 1934).

40-04-09. City auditor to pass on sufficiency of petition to change from commission system of government.

Within thirty days after a petition to change from the commission system of government is filed, the city auditor shall examine the petition and ascertain whether or not the petition is signed by the required number of qualified electors. The city auditor shall attach to the petition the city auditor’s certificate showing the result of the city auditor’s examination, and if the city auditor finds the petition to be insufficient the city auditor’s certificate shall show the reason for such determination. An insufficient petition may be amended within ten days after the city auditor’s certificate is made. Within thirty days after an amended petition is filed, the city auditor shall make an examination thereof, and if the city auditor’s certificate shows such amended petition to be insufficient, it shall be returned to the person filing the same without prejudice to the filing of a new petition. If the city auditor shall find the petition or the amended petition to be sufficient, the city auditor shall place the same, with the city auditor’s certificate, before the governing body of the municipality.

Source: S.L. 1911, ch. 67, § 5; 1913, ch. 79, § 5; C.L. 1913, § 3839; R.C. 1943, § 40-0409; S.L. 1961, ch. 273, § 2; 1985, ch. 235, § 69.

40-04-10. Procedure upon filing of petition to change from or revert to commission system of government — Election — Ballot.

When a petition to change from or revert to the commission system of government, with the city auditor’s certificate of sufficiency, is filed with the governing body of a city, or when a resolution to change or revert has been adopted, the governing body shall call a special election at which only the question of changing from or reverting to the commission system of government will be submitted. The date of such election shall not be less than sixty days nor more than ninety days after the date of the auditor’s certificate that a sufficient petition has been filed. The ballot to be used at the election shall include the issue presented in the petition or resolution in substantially one of the following forms:

CHANGE FROM COMMISSION SYSTEM OF GOVERNMENT Shall the city of change from its organization under the commission system of government and become a city under the council form of government? Yes No Shall the city of change from its organization under the commission system of government and become a city under the modern council form of government with a five-man council? Yes No Shall the city of change from its organization under the commission system of government and become a city under the modern council form of government with a seven-man council? Yes No Shall the city of change from its organization under the commission system of government and become a city under the modern council form of government with an eleven-man council? Yes No REVERSION TO COMMISSION SYSTEM OF GOVERNMENT Shall the city of revert from the council form of government to the commission system of government? Yes No Shall the city of revert from the modern council form of government with a five-man council to the commission system of government? Yes No Shall the city of revert from the modern council form of government with a seven-man council to the commission system of government? Yes No Shall the city of revert from the modern council form of government with an eleven-man council to the commission system of government? Yes No

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Source: S.L. 1911, ch. 67, § 5; 1913, ch. 79, § 5; C.L. 1913, § 3839; R.C. 1943, § 40-0410; S.L. 1961, ch. 273, § 3; 1965, ch. 285, § 12; 1981, ch. 406, § 2.

40-04-11. Procedure when election favors changing from commission system of government.

If a majority of the votes cast on the question at the election provided for in section 40-04-10 favor the proposition submitted at such election, the officers elected at the next biennial election shall be those prescribed by the provisions of this title relating to cities organized under the city council form of government. Upon the qualification of such officers, the city shall become a city under the council form of government.

Source: S.L. 1911, ch. 67, § 5; 1913, ch. 79, § 5; C.L. 1913, § 3839; R.C. 1943, § 40-0411; S.L. 1997, ch. 108, § 21.

CHAPTER 40-04.1 Modern Council Form of Government

40-04.1-01. City council — Membership — Terms.

The governing body of a city operating under the modern council form of government is the city council, which is composed of not less than four members, one of whom is the mayor, all elected at large or by wards. Candidates for the council shall run for either mayor or council member but not both at the same time. The terms of members of the council shall be four years, or until their successors are elected and qualified. However, the council shall establish by ordinance a procedure whereby one-half of all council members, as nearly as is practicable, are elected biennially. The number of council members may be increased or decreased pursuant to section 40-06-09.

Source: S.L. 1965, ch. 285, § 1; 1987, ch. 488, § 2; 1993, ch. 401, § 29.

Law Reviews.

Towards Home Rule for North Dakota Cities, 42 N.D. L. Rev. 164 (1966).

40-04.1-02. Compensation of council members.

The members of the council are entitled to receive such compensation for their services as is fixed by ordinance.

Source: S.L. 1965, ch. 285, § 2; 1993, ch. 401, § 30; 2001, ch. 357, § 1.

40-04.1-03. Vacancies on city council — How filled.

If a vacancy occurs in the office of councilman by death, resignation, or otherwise, the city may call a special election to fill such vacancy for the unexpired term or may after fifteen days of the date of such vacancy appoint a person from the ward or city at large by which the councilman previously holding was elected or appointed to fill such vacancy until the next city election, at which election the unexpired term shall be filled.

Source: S.L. 1965, ch. 285, § 3.

40-04.1-04. Restrictions on council member.

A city council member is not eligible for any other office the salary of which is payable out of the city treasury and may not hold any other office under the city government.

Source: S.L. 1965, ch. 285, § 4.

40-04.1-05. Meetings — Regular, special, and for organization.

The city council shall hold its regular meetings at least once a month and may prescribe by ordinance the manner in which special meetings may be called. The city council shall establish by resolution or ordinance the date of its regular meetings. The first meeting for the organization of the city council must be held on the fourth Tuesday in June of each even-numbered year.

Source: S.L. 1965, ch. 285, § 5; 1991, ch. 441, § 1; 1991, ch. 442, § 3; 2003, ch. 339, § 1.

40-04.1-06. Mayor.

The mayor shall preside at meetings of the council, and be the recognized head of the city for all ceremonial purposes and by the governor for purposes of military law. The mayor continues to have all the rights and privileges as a member of the council. If a vacancy occurs in the office of mayor or if the incumbent is absent or disabled, a mayor pro tempore shall be selected by the council from among their number to act for the unexpired term or during continuance of the absence or disability.

Source: S.L. 1965, ch. 285, § 6.

40-04.1-07. Council — Duties and powers.

The council shall perform all duties prescribed by law or by city ordinances and shall see that the laws and ordinances are faithfully executed.

Source: S.L. 1965, ch. 285, § 7.

CHAPTER 40-05 Powers of Municipalities

40-05-01. Powers of all municipalities.

The governing body of a municipality shall have the power:

  1. Ordinances. To enact or adopt all such ordinances, resolutions, and regulations, not repugnant to the constitution and laws of this state, as may be proper and necessary to carry into effect the powers granted to such municipality or as the general welfare of the municipality may require, and to repeal, alter, or amend the same. The governing body of a municipality may adopt by ordinance the conditions, provisions, and terms of a building code, a fire prevention code, a plumbing code, an electrical code, a sanitary code, vehicle traffic code, or any other standard code which contains rules and regulations printed as a code in book or pamphlet form by reference to such code or portions thereof alone without setting forth in said ordinance the conditions, provisions, limitations, and terms of such code. When all or part of any such code has been incorporated by reference into any ordinance, it has the same force and effect as though it had been spread at large in such ordinance without further or additional posting or publication. A copy of such standard code or portion thereof shall be filed for use and examination by the public in the office of the city auditor of such municipality prior to adoption. The adoption of any such standard code by reference shall be construed to incorporate such amendments thereto as may be made therein from time to time, and such copy of such standard code so filed shall at all times be kept current in the office of the city auditor of such municipality. The adoption of any such code or codes heretofore by any municipality is hereby validated. Fines, penalties, and forfeitures for the violation thereof may be provided within the limits specified in this chapter notwithstanding that such offense may be punishable also as a public offense under the laws of this state.
  2. Finances and property. To control the finances, to make payment of its debts and expenses, to contract debts and borrow money, to establish charges for any city or other services, and to control the property of the corporation.
  3. Appropriation. To appropriate money for corporate purposes only, and to provide for the payment of debts and expenses of the corporation.
  4. Tax levy. To levy and collect taxes on real and personal property for general and special purposes.
  5. Borrowing money. To borrow money on the credit of the corporation for corporation purposes and to issue bonds therefor as limited and provided by title 21.
  6. Refunding obligations. To issue bonds in place of or to supply means to meet maturing bonds, or for the consolidation or funding of bonds or any floating indebtedness of the municipality in the manner provided in title 21.
  7. Certificates of indebtedness. To borrow money in anticipation of revenues to be derived from taxes already levied as provided and limited in title 21.
  8. Streets, sidewalks, and public grounds. To lay out, establish, open, alter, repair, clean, widen, vacate, grade, pave, park, or otherwise improve and regulate the use of streets, alleys, avenues, sidewalks, crossings, and public grounds, and to acquire, construct, maintain, and operate parking lots and facilities for motor vehicles; to regulate or prevent any practice having a tendency to annoy persons frequenting the same; and to prevent and regulate obstructions and encroachments upon the same.
  9. Powers relating to parks — Planting grass and trees — Powers respecting parks. To regulate the planting of trees and grass on boulevards, berms, parks, parkways, and public grounds, and to exercise the same powers as are granted to a board of park commissioners respecting the parks of the municipality, if any, until the municipality has been organized into a park district.
  10. Lighting of public places. To provide for the lighting of streets, alleys, avenues, parks, and public grounds.
  11. Lights to inhabitants of city. To provide for the furnishing of lights to the inhabitants of the city.
  12. Gas and water mains — Sewers — Electric light and gas plants. To regulate the laying of gas or water mains and pipes, and the building, laying, or repairing of sewers, tunnels, and drains, and the erecting of gas and electric light plants. Any company or association of persons organized for the purpose of manufacturing illuminating gas or electricity to supply municipalities and the inhabitants thereof shall have authority, subject to existing rights, with the consent of the governing body of the municipality, to erect gas or electric light works and lay down pipes and string wires or poles in streets or alleys subject to such regulations as the municipality may prescribe by ordinance.
  13. Structures under sidewalks — Snow and obstructions. To regulate the use of all structures under sidewalks and to require the owner or occupant of any premises to keep the sidewalks in front of or along such premises free from snow or other obstruction.
  14. Streets — Cleanliness of and injury to. To regulate and prevent the throwing or depositing of ashes, offal, dirt, garbage, or any offensive matter in, and to prevent injury to, any street, avenue, alley, or public ground.
  15. Curbs and gutters. To provide for and regulate curbs and gutters.
  16. Advertising and obstructions in public places. To regulate and prevent the use of streets, sidewalks, and public grounds for signs, signposts, awnings, telegraph and telephone poles, posting handbills and advertisements, the exhibition or carrying of banners, placards, advertisements, or handbills, and the flying of flags, banners, or signs across the streets or from houses.
  17. Traffic and sales in public places. To regulate traffic and sales upon the streets, sidewalks, and public places.
  18. Speed of vehicles and locomotives. To regulate the speed of vehicles and locomotives within the corporate limits of the corporation, except that the speed limit for vehicles on those streets designated as part of any state highway shall be determined by mutual agreement with the director of the department of transportation.
  19. Numbering lots. To regulate the numbering of houses and lots.
  20. Naming streets. To name and change the name of any street, avenue, alley, or other public place.
  21. Railroad companies — Ditches and rights of way. To require railroad companies to make, keep open, and repair ditches, drains, sewers, and culverts along and under their tracks so that filthy and stagnant pools of water cannot stand on their grounds or right of way and so that the natural or artificial drainage of adjacent property shall not be impeded. To require railroad companies to fence their respective railroads or any portion of the same and construct cattle guards and public roads and keep the same in repair within the limits of the corporation.
  22. Extending ways and pipes over railroad property. To extend by condemnation, subject to chapter 32-15, or otherwise any street, alley, or highway over, under, or across, or to construct or lay any sewer, water pipe, or main under or through, any railroad track, right of way, or land of any railroad company within the corporate limits.
  23. Culverts, drains, and cesspools. To construct and keep in repair culverts, drains, sewers, catch basins, manholes, cesspools, vaults, cisterns, areas, and pumps within the corporate limits.
  24. Licenses. To fix the amount, terms, and manner of issuing and revoking licenses.
  25. Plumbers and plumbing business. To adopt, by ordinance, if it has a system of waterworks or sewerage, rules and regulations governing plumbing, drainage, and ventilation of plumbing within the limits of the municipality. The standards provided for in such ordinance, however, shall not be lower than the minimum standards provided for in any state plumbing code adopted pursuant to chapter 43-18, but may be higher than such standards. It may prescribe rules and regulations for all materials, constructions, alteration and inspection of pipes, tanks, and fixtures by which water is supplied to the citizens of the municipality, or by which waste or sewage is carried, and may provide that such pipes, tanks, and fixtures shall not be placed in any building in the municipality except in accordance with plans which are approved under the provisions of said ordinance, and that no plumbing shall be done except by plumbers registered and licensed under state law and under the ordinance, except by a property owner on that person’s own premises which are occupied as that person’s home or place of residence. The ordinance may provide that all work done by an owner upon that person’s own premises must comply with the provisions of the state plumbing code or a local ordinance, whichever shall prescribe the highest standards. Before the municipality may require a plumber to be licensed by the municipality, it shall provide standards for plumbing in a municipality equal to or in excess of those provided by the state plumbing code. A municipality may adopt the state plumbing code as a whole as an ordinance of the municipality by reference without the necessity of publishing the text therefor.
  26. Transient business and amusements. To license, tax, regulate, remove, suppress, and prohibit fortune-tellers, astrologers, and all persons practicing palmistry, clairvoyancy, mesmerism, and spiritualism, hawkers, peddlers, pawnbrokers, theatricals and other exhibitions, shows and amusements, ticket scalpers, and employment agencies, and to revoke the license at pleasure, except that the provision in this subsection with reference to hawkers and peddlers shall not apply to persons selling or offering for sale the products raised or grown on land within this state.
  27. Draymen, taxi drivers, porters, and others pursuing like occupations. To license, tax, regulate, and prescribe the rates charged by draymen, parcel delivery men, busdrivers, taxi drivers, porters, expressmen, watermen, and others pursuing like occupations, and the operation of taxicabs. Provided, all motor vehicles used in ridesharing arrangements, as defined in section 8-02-07, are not taxicabs.
  28. Runners for stages and other things or persons. To license, regulate, tax, and restrain runners for stages, buses, cars, public houses, or other things or persons.
  29. Alcoholic beverages. To regulate the use and to regulate and license the sale of alcoholic beverages subject to the provisions contained in title 5.
  30. Bowling alleys, pool, billiards, theaters, and motion picture theaters. To license, regulate, and tax bowling alleys, theaters, motion picture theaters, and pool or billiard tables, or any other tables or implements kept or used for similar purposes in any public place.
  31. Markets, market houses, and slaughterhouses. To establish, purchase, erect, lease, rent, manage, maintain, regulate, and provide for the use of markets and market houses, municipal slaughterhouses, or abattoirs.
  32. Dairy, meat, and food products — Inspection and regulation of sale. To provide for the inspection of milk, cream, and butter sold within the limits of the municipality, and of any dairy or dairy herd kept for the production of such milk, cream, and butter. To prescribe the terms upon which sales of such milk, cream, and butter may be made and to fix penalties for violations. To prescribe regulations for the slaughtering of animals to be sold as meat. To prescribe generally sanitary and regulatory provisions as applied to food products sold within the limits of the municipality and to prohibit the sale of impure and diseased milk or other food products.
  33. Public peace in municipality. To provide for keeping and preserving the peace and quietude of the municipality, prevent disorderly conduct, prohibit public intoxication, and prevent and suppress riots, affrays, disturbances, and disorderly assemblies in any place.
  34. Fire limits. To prescribe fire limits within which wooden buildings shall not be erected, placed, or repaired without permission; provide that when a building within such limits has been damaged by fire, decay, or otherwise to the extent of fifty percent of its valuation, it shall be torn down and removed; prescribe the manner of ascertaining such damage; provide for the removal of any structure or building erected contrary to the prescribed rules; declare each day’s continuance of such building or structure a separate offense and to prescribe the penalties therefor; and define fireproof material.
  35. Fire hazards. To prevent and provide for remedying any dangerous construction or condition of any building, enclosure, or manufactory, or any equipment used therein; regulate and prevent the carrying on of manufactories creating a fire hazard; prevent a deposit or keeping of ashes or refuse in unsafe places; and require all buildings and places to be put and kept in a safe condition.
  36. Waterworks system. To purchase, acquire by eminent domain in accordance with chapter 32-15, erect, lease, rent, manage, and maintain any system of waterworks, well reservoirs, pipes, machinery, buildings, and all other property comprising a waterworks system, such as hydrants, supply of water, fire stations, fire signals, fire engines, or fire apparatus that may be of use in the prevention and extinguishment of fires, and to fix and regulate the rates, use, and sale of water.
  37. Fire equipment — Use beyond municipal limits. To use its fire department to attend to fires and render assistance to other municipalities within or without this state, or to private property, including farm buildings located outside the city limits, and the fire department, its members, and apparatus, when engaged outside the limits of the municipality, shall be deemed to be engaged in the performance of a public duty as fully as if serving within the limits of the municipality.
  38. Storage of combustible material — Use of fireworks and open flame lights. To regulate and prohibit the storage of combustible or explosive material, the use of open flame lights, the building of bonfires, and the use or sale of firecrackers and fireworks.
  39. Lumberyards. To regulate or prohibit the keeping of any lumberyard and the keeping or selling of any lumber or other combustible material within the fire limits.
  40. Steam boilers. To provide for the inspection of steam boilers.
  41. Jails. To establish, maintain, and regulate a jail and, with the consent of the board of county commissioners, to use the county jail for the confinement of persons charged with or convicted of the violation of any ordinance.
  42. Cruelty to animals. To prohibit and punish cruelty to animals.
  43. Vagrants and prostitutes. To restrain and punish vagrants, mendicants, and prostitutes.
  44. Nuisances. To declare what shall constitute a nuisance and to prevent, abate, and remove the same.
  45. Health regulations. To make regulations necessary or expedient for the promotion of health or for the suppression of disease.
  46. Cemeteries. To establish, maintain, and regulate cemeteries within or without the municipality, acquire land therefor by purchase or otherwise, and cause cemeteries to be removed, and to prohibit the establishment thereof within, or within one mile [1.61 kilometers] of, the corporate limits.
  47. Animals and poultry. To regulate or prohibit the running at large of animals and poultry, provide for the establishment and maintenance of public pounds for the impounding of any animals or poultry running at large or tethered in any street in violation of municipal ordinances, establish procedures for the impounding and discharging of animals and poultry impounded, make the expenses and fines imposed a lien upon such stock or poultry, and provide for the sale of the stock or poultry to satisfy such lien.
  48. Packinghouses and other offensive businesses. To control the location and regulate the management and construction of packinghouses, renderies, bone and soap factories, slaughterhouses, livery stables, and blacksmith shops, and to prohibit any offensive or unwholesome business within, or within one mile [1.61 kilometers] of, the corporate limits.
  49. Unwholesome or nauseous places. To compel the owner of any cellar, stable, pigsty, privy, sewer, or other unwholesome or nauseous thing or place to cleanse, abate, or remove the same, and to regulate the location thereof.
  50. Public buildings. To construct, operate, and maintain all public buildings necessary for the use of the municipality.
  51. Auctioneers, brokers, lumberyards, and public scales. To license, tax, and regulate auctioneers, brokers, lumberyards, and public scales.
  52. Supplies. To provide that supplies needed for the use of the municipality shall be furnished by contract let to the lowest responsible bidder.
  53. Secondhand and junk stores. To license, tax, and regulate secondhand and junk stores and to forbid and punish the purchase and receipt by them from minors of any articles without the written consent of their parents or guardians.
  54. Insure public property. To insure the public property of the municipality.
  55. Real and personal property. To acquire by lease, purchase, gift, condemnation, or other lawful means and to hold in its corporate name for use and control as provided by law, both real and personal property and easements and rights of way within or without the corporate limits or outside this state for all purposes authorized by law or necessary to the exercise of any power granted.
  56. Transfer property. To convey, sell, dispose of, or lease personal and real property of the municipality as provided by this title.
  57. Franchises. To grant franchises or privileges to persons, associations, corporations, or limited liability companies, any such franchise, except when given to a railroad company, to extend for a period of not to exceed twenty years, and to regulate the use of the same, franchises granted pursuant to the provisions of this title not to be exclusive or irrevocable but subject to the regulatory powers of the governing body.
  58. Airports. To acquire, establish, construct, expand, own, lease, control, equip, improve, maintain, operate, regulate, and police airports and landing fields within or without the geographic limits of the municipality as provided in title 2.
  59. Public works project. To accept aid from, cooperate and contract with, and to comply with and meet the requirements of any federal or state agency for the establishment, construction, and maintenance of public works, including dams and reservoirs for municipal water supply, for water conservation, flood control, prevention of stream pollution, or sewage disposal. In furtherance thereof to acquire by purchase, lease, gift, or condemnation the necessary lands, rights of way, and easements for such projects, and to transfer and convey to the state or federal government, or any agency thereof, such lands, rights of way, and easements in consideration of the establishment and construction of, and the public benefits which will be derived from any such project. To enter into an agreement with any such government, agency, or municipality within or without this state, to hold such government, agency, or municipality harmless from any and all liability or claim of liability arising from the establishment, construction, and maintenance of such works, and to indemnify such government, agency, or municipality for any such liability sustained by it and to pay all costs of defending against any such claim. In furtherance thereof to acquire by purchase, lease, gift, or, subject to chapter 32-15, condemnation, the necessary lands, rights of way, and easements for such projects, and to transfer and convey to such government, agency, or municipality, such lands, rights of way, and easements in consideration of the establishment and construction of, and the public benefits which will be derived from any such project, or to pay the cost of the acquisition of such lands, rights of way, and easements by such government, agency, or municipality. All actions herein authorized may be taken by resolution duly adopted by the governing body of the municipality. Any and all actions and proceedings heretofore taken by any municipality which are within the authority granted by this subsection are hereby legalized and validated.
  60. Special improvement assessments — Satisfaction. To make assessments as limited by the laws of this state for local improvements on property adjoining or benefited thereby, to collect the same in the manner provided by law, and to satisfy the tax lien on lands subject to special assessments.
  61. Public water supply. To prevent the pollution of or injury to any water supply belonging to the municipality or any public water supply within, or within one mile [1.61 kilometers] of, the limits of the municipality.
  62. Band. To levy a tax as provided in this title for the purpose of providing a fund for the maintenance or employment of a band for municipal purposes.
  63. Radio reception. To regulate the installation and operation of motors and other electrical or mechanical devices so as to prevent interference with radio reception.
  64. Municipal plants. To sell, convey, and dispose of the plant or equipment of any public utility owned by the municipality and to contract for the leasing or operation of such plant, equipment, or utility by others, and to grant to the lessee or operator under such a contract the right to purchase such plant, equipment, or utility upon such terms and conditions as may be expressed in the contract, after authorization as provided by this title.
  65. Public dances. To license, tax, and regulate public dances or public dancehalls.
  66. Light and power plants and gas transmission or distribution systems. To purchase, acquire by eminent domain in accordance with chapter 32-15, erect, lease, rent, manage, and maintain electric light and power plants, gasworks, steam heating plants and appurtenances for distribution, and to regulate and fix the rates to its patrons and to jointly, with other municipalities, acquire by eminent domain, erect, construct, lease, rent, manage, and maintain any artificial or natural gas transmission or distribution lines or plants.
  67. Flood control projects. To acquire, construct, maintain, operate, finance, and control flood control projects, both within and adjacent to such municipality, and for such purpose to acquire the necessary real property and easements therefor by purchase and eminent domain, in accordance with chapter 32-15, and to adopt such ordinances as may reasonably be required to regulate the same.
  68. Public restrooms. To acquire, construct, maintain, operate, finance, and control public restrooms and facilities within such municipality, and for such purpose to acquire the necessary real property therefor by purchase and eminent domain, in accordance with chapter 32-15, and to adopt such ordinances as may reasonably be required to regulate the same.
  69. Employee pension system. To adopt, by ordinance, a city employee pension system that may provide all rules and regulations governing its operation and discontinuance, provided other pension systems allowed by statute are not in effect, excepting firefighters relief associations and federal social security, or in order to consolidate existing pension plans. In addition to all other rules and regulations deemed necessary and proper by the governing body, it may provide as to matters pertaining to membership, tax levies in an amount not exceeding the total levies authorized by chapters 40-45 and 40-46, membership fees and assessments, management, investments, acceptance of money and property, retirement conditions and payment amount, continuance of system and discontinuance procedures, discontinuance payments, entrance into contracts with an insurance firm or firms for coverage of the employee pension system.
  70. Television towers. To construct and maintain relay and booster towers for the improved reception of educational and entertainment television programs.
  71. Contracts. To contract and be contracted with.
  72. Community development block grant program. To loan or grant money to and secure a mortgage from individuals, associations, corporations, or limited liability companies and to purchase ownership shares or membership interests in corporations, limited liability companies, or other business associations as provided through the procedures established by the state’s community development block grant program established pursuant to the Housing and Community Development Act of 1974 [Pub. L. 93-383; 88 Stat. 633; 42 U.S.C. 5301 et seq.]. This power applies to all community development block grant transactions of the governing body, including any transactions prior to July 1, 1987. A city is not lending its funds or extending its credit to any individual, association, or organization under this subsection and no general liability on the part of the city is incurred.
  73. Encouragement of arts. To, consistent with section 54-54-01, appropriate and disburse city moneys and to accept and disburse moneys received from federal, state, county, city, or private sources for the establishment, maintenance, or encouragement of arts within the city. The authority of a city under this subsection is supplemental to the authority provided in chapter 40-38.1.
  74. To expend city funds for the purpose of participating in an organization of city governments under section 40-01-23.
  75. To participate and enact or adopt ordinances necessary for participation in the nation’s historic preservation program as a certified local government, as provided for under 36 CFR 61.5.
  76. Lease of waterworks or sewage systems. To lease, for a term not to exceed ninety-nine years, the plant or equipment of any waterworks, mains, or water distribution system and any property related thereto pursuant to subsection 5 of section 40-33-01 or to lease, for a term not to exceed ninety-nine years, any sewage system and all related property for the collection, treatment, purification, and disposal in a sanitary manner of sewage pursuant to section 40-34-19.
  77. Appointed board budgets. To require that financial records, including all revenues, expenditures, fund balances, and complete budgets, be submitted to the governing body of the municipality at a time and in a format requested by that governing body by all boards, authorities, committees, and commissions with members appointed by the governing body before the governing body’s approval of the budget and tax levy.
  78. To expend city funds as a donation for a capital improvement project to a nonprofit health care facility within the city.

Source: Pol. C. 1877, ch. 24, § 22; S.L. 1887, ch. 73, art. 4, § 1; 1887, ch. 105, § 1; 1887, ch. 106, § 1; 1890, ch. 100, §§ 1, 2; R.C. 1895, §§ 2148, 2365, 2459; S.L. 1897, ch. 102, § 1; 1897, ch. 148, § 1; 1899, ch. 40, § 1; 1899, ch. 172, § 1; R.C. 1899, §§ 2148, 2365, 2459; S.L. 1905, ch. 62, § 47; 1905, ch. 95, § 16; 1905, ch. 186, § 1; R.C. 1905, §§ 2105, 2678, 2864, 2963; S.L. 1907, ch. 45, § 48; 1907, ch. 90, § 17; 1907, ch. 268, § 1; 1909, ch. 92, § 26; 1911, ch. 5; 1911, ch. 73, § 1; 1911, ch. 77, § 48; 1913, ch. 75, § 1; 1913, ch. 83, § 1; 1913, ch. 291, § 1; C.L. 1913, §§ 2860, 3599, 3818, 3861, 3863, 3990; S.L. 1917, ch. 75, § 1; 1921, ch. 34; 1923, ch. 222, § 20; 1923, ch. 326; 1925, ch. 104; 1925 Supp., §§ 2079b1 to 2079b13, 2889b20, 3599, 3818; S.L. 1927, ch. 270, § 1; 1929, ch. 86, § 1; 1931, ch. 92, §§ 1, 2; 1931, ch. 191, §§ 1, 2; 1931, ch. 202, § 1; 1933, ch. 175, §§ 1, 3; 1933, ch. 247; 1935, ch. 283, § 1; 1939, ch. 9, § 1; 1941, ch. 187, § 8; R.C. 1943, § 40-0501; S.L. 1947, ch. 281, § 1; 1947, ch. 284, § 1; 1949, ch. 257, § 1; 1949, ch. 258, § 1; 1949, ch. 259, § 1; 1955, ch. 254, § 2; 1955, ch. 259, § 6; 1957 Supp., § 40-0501; S.L. 1959, ch. 285, § 4; 1959, ch. 302, § 1; 1959, ch. 303, § 1; 1963, ch. 286, § 1; 1963, ch. 287, § 1; 1967, ch. 323, § 116; 1969, ch. 367, § 1; 1971, ch. 387, § 1; 1971, ch. 594, § 2; 1975, ch. 119, § 13; 1979, ch. 444, § 1; 1981, ch. 131, § 10; 1981, ch. 407, § 1; 1985, ch. 453, § 2; 1985, ch. 454, § 1; 1987, ch. 489, § 1; 1989, ch. 488, § 2; 1993, ch. 54, § 106; 1993, ch. 402, § 1; 1999, ch. 211, § 16; 1999, ch. 503, § 9; 2003, ch. 340, § 1; 2003, ch. 341, § 1; 2003, ch. 342, § 3; 2007, ch. 293, § 17.

Cross-References.

Advertising purposes, power of city to levy tax for, see § 57-15-10.1.

Airports and landing fields, see ch. 2-02.

Alcoholic beverages, retail licensing, see ch. 5-02.

Archaeological and paleontological materials reserved in land dispositions, see § 55-03-06.

Bonds, provisions governing, see ch. 21-03.

Borrow money and issue municipal obligations, power to, see § 21-03-04.

Carnival, permit required, see § 53-03-03.

Cemeteries, regulation, see § 23-06-21.

Contagious diseases, power of quarantine, see §§ 23-07-06, 40-06-01.

Dairy products, regulations, see ch. 4-30.

Dances, regulation, see ch. 53-02.

Drains for city water supply, joint use of under agreement with drain commissioners, see §§ 61-26-01 to 61-26-03.

Explosives, rules and regulations of state fire marshal, see § 18-01-33.

Federal-aid highway construction, participation of municipalities, see §§ 24-04-04 to 24-04-06.

Federal government, authority to contract with, see § 21-06-08.

Food, Drug, and Cosmetic Act, see ch. 19-02.1.

Highways, classification as to weight and load capacity, see § 39-12-01.

Highways, power of township supervisors to improve streets in cities, see § 58-06-01.

Historical society building space, furnished by municipality or political subdivision, see § 11-11-52.

Hospital, temporary establishment for contagious diseases, see § 23-07-13.

Housing authority, see ch. 23-11.

Indebtedness, certificates, see ch. 21-02.

Indebtedness, limitation, see § 21-03-04.

Insurance, municipality may carry on motor vehicles, see § 39-01-08.

Insurance on public buildings, see ch. 26.1-22.

Jails, see ch. 12-44.1.

Joint exercise of governmental powers, see ch. 54-40.

Joint ownership and use of public buildings and grounds, see § 48-04-01.

Land transfers or abandonment of property acquired under section 11-27-08, see § 40-49-23.

Leases, validation of oil and gas leases, see § 1-04-17.

Leasing land for oil and gas development, see §§ 38-09-02 to 38-09-04.

Liquor, retail licensing, see ch. 5-02.

Nuisance, abatement, see ch. 42-02.

“Nuisance” defined, see § 42-01-01.

Parking meters prohibited, see § 39-01-09.

Parking regulations, requirements for signs, see § 39-13-03.

Parks and park districts, see ch. 40-49.

Rendering plant, restrictions on rebuilding and locating, see § 36-07-13.

Revenue bond refinancing law, see ch. 40-36.

Special assessment warrants, refunding, see ch. 40-27.

Speed limitations, powers of local authorities, see § 39-09-03.

Streets, alleys, and public places, opening and vacating, see ch. 40-39.

Sunday business and labor prohibitions, see ch. 12.1-30.

Tax levies and limitations, see ch. 57-15.

Tax levies, excess levies in municipal government, see ch. 57-17.

Traffic accident reports, city may require, see §§ 39-08-09, 39-08-16.

Traffic-control devices and parking signs, erection, see §§ 39-10-04, 39-13-03.

Transient merchants, regulation by municipality, see § 51-04-09.

Weed control, see § 63-01.1-10.1.

Notes to Decisions

Appellate Review.

Supreme court will not overturn discretionary act by local commission for failure to publish notice and hold a public hearing in accordance with the published notice when that issue was never raised before the commission, which, therefore, was not given an opportunity to correct the error, if any, before rendering a final decision. An issue not raised in an initial proceeding ordinarily may not be raised on appeal. Lynch v. Williston City Comm'n, 460 N.W.2d 136, 1990 N.D. LEXIS 187 (N.D. 1990).

Subdivision 1.
—Codes Incorporated by Reference.

Because the challenged ordinance was self-contained and did not adopt an existing code by reference, the filing requirement of this section did not apply to that ordinance. Buchholz v. City of Oriska, 2000 ND 115, 611 N.W.2d 886, 2000 N.D. LEXIS 123 (N.D. 2000).

—Compliance with State Law.

City ordinance which admits of a measure of compliance that does not satisfy state law must be construed as silent where the statute speaks, so the statute will apply. Klingensmith v. Siegal, 57 N.D. 768, 224 N.W. 680, 1929 N.D. LEXIS 324 (N.D. 1929).

—Concurrent Jurisdiction.

If the municipality has concurrent jurisdiction with the state to punish an offense, an ordinance punishing the offense is valid, even though there may be a statute under which the offender may also be punished, and a conviction under the one jurisdiction is not a bar to a conviction under the other. City of Fargo v. Glaser, 62 N.D. 673, 244 N.W. 905, 1932 N.D. LEXIS 233 (N.D. 1932).

Where the act is, by its nature, one which constitutes two offenses, one against the state and one against the municipality, the latter may be constitutionally authorized to punish it, even though the act is also an offense under state law. City of Fargo v. Glaser, 62 N.D. 673, 244 N.W. 905, 1932 N.D. LEXIS 233 (N.D. 1932).

—Implied Powers.

When the power is conferred upon the city council to do and perform any act or thing, and the manner of exercising the same is not specifically pointed out, the city council may provide by ordinance the details necessary for the full exercise of the power. Engstad v. Dinnie, 8 N.D. 1, 76 N.W. 292, 1898 N.D. LEXIS 3 (N.D. 1898).

Where the act or matter covered by the ordinance, and by state law, is not essentially criminal in its nature, and is one the regulation of which is generally confined to local government of cities and towns, but is also of a nature to require general legislation, intention that municipality should have power to make more definite regulations will be inferred from language which would not be sufficient were the matter one not relating to corporate duties. City of Fargo v. Glaser, 62 N.D. 673, 244 N.W. 905, 1932 N.D. LEXIS 233 (N.D. 1932).

Cities are agencies of the state and have only the powers expressly conferred upon them by the legislative branch of the government or such as may be necessarily implied from the powers expressly granted. State ex rel. Dreyer v. Brekke, 75 N.D. 468, 28 N.W.2d 598, 1947 N.D. LEXIS 84 (N.D. 1947); Fradet v. Southwest Fargo, 79 N.D. 799, 59 N.W.2d 871, 1953 N.D. LEXIS 77 (N.D. 1953); Ujka v. Sturdevant, 65 N.W.2d 292, 1954 N.D. LEXIS 88 (N.D. 1954).

—Police Powers.

Ordinances, though penal in character, are not criminal laws. Village of Litchville v. Hanson, 19 N.D. 672, 124 N.W. 1119, 1910 N.D. LEXIS 17 (N.D. 1910).

Ordinances providing for the good order, peace, and morals of the city are police regulations separate and apart from the criminal jurisprudence of the state. State v. Simpson, 78 N.D. 360, 49 N.W.2d 777, 1951 N.D. LEXIS 95 (N.D. 1951), disapproved, Waller v. Florida, 397 U.S. 387, 90 S. Ct. 1184, 25 L. Ed. 2d 435, 1970 U.S. LEXIS 52 (U.S. 1970).

In passing upon the validity of city ordinances founded on police power granted by state to the municipality, the courts will not declare them invalid unless they are clearly arbitrary, unreasonable, and without relation to public health, safety, morals, or public welfare. SODERFELT v. CITY OF DRAYTON, 79 N.D. 742, 59 N.W.2d 502, 1953 N.D. LEXIS 75 (N.D. 1953); Tayloe v. Wahpeton, 62 N.W.2d 31, 1953 N.D. LEXIS 85 (N.D. 1953).

City shoplifting ordinance, which established a prima facie presumption regarding the concealment of merchandise was authorized under this section, did not attempt to supersede state law, and was not constitutionally repugnant; it did not define an offense differently from that in the state statute, and merely provided a non-mandatory presumption as an evidentiary device for proving the element of intent. City of Dickinson v. Gresz, 450 N.W.2d 216, 1989 N.D. LEXIS 252 (N.D. 1989).

—Resolution or Ordinance.

The object of this subsection is to prevent the council from exercising large grants of authority without specific regulations of the same first having been made by some enactment which has the force of law, and a mere resolution of the council does not suffice to meet this requirement. Engstad v. Dinnie, 8 N.D. 1, 76 N.W. 292, 1898 N.D. LEXIS 3 (N.D. 1898).

When the charter commits the decision of a matter to the council, and is silent as to the mode, neither expressly nor by necessary or clear implication requiring the action of the council to be in the form of an ordinance, the decision of the council may be evidenced by resolution and need not necessarily be by ordinance. Kerlin v. Devils Lake, 25 N.D. 207, 141 N.W. 756, 1913 N.D. LEXIS 119 (N.D. 1913).

—Scope of Statute.

This statute gives the governing body of the municipality the authority to pass ordinances regulating its own local affairs in all matters not prohibited by state law, even if such matters are covered generally by the state law. State v. Simpson, 78 N.D. 360, 49 N.W.2d 777, 1951 N.D. LEXIS 95 (N.D. 1951), disapproved, Waller v. Florida, 397 U.S. 387, 90 S. Ct. 1184, 25 L. Ed. 2d 435, 1970 U.S. LEXIS 52 (U.S. 1970).

Subdivision 2.
—Finances and Property.

City commission had the power to dispose of “for the use of the city” any lien on, or interest in, real property in which the city had acquired an interest by reason of the misconduct of its treasurer, and also had the power to convert it into money. City of Williston v. Ludowese, 53 N.D. 797, 208 N.W. 82, 1926 N.D. LEXIS 24 (N.D. 1926).

Public moneys are trust funds and payment under a mistake of law in the course of governmental activity may be recovered, but public moneys paid under a mistake of law in the course of an ordinary proprietary or quasi private capacity of the city cannot be thus recovered. Chrysler Light & Power Co. v. Belfield, 58 N.D. 33, 224 N.W. 871, 1929 N.D. LEXIS 178 (N.D. 1929).

Subdivision 4.
—Tax Levy.

The incidental and indirect benefits accruing to the inhabitants of a city from the development of its commercial interests will not sustain the power of taxation. Manning v. City of Devils Lake, 13 N.D. 47, 99 N.W. 51, 65 L.R.A. 187, 112 Am. St. Rep. 652 (1904), decided prior to the enactment of N.D.C.C § 40-60-01 .

Subdivision 5.
—Borrowing Money.

When the power to authorize the issuance of bonds is vested in the voters they cannot delegate such power to the city council. Stern v. City of Fargo, 18 N.D. 289, 122 N.W. 403, 26 L.R.A. (n.s.) 665 (1909), distinguished, Lang v. City of Cavalier, 59 N.D. 75, 228 N.W. 819 (1930) and Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953).

Proposition of issuing bonds must be submitted to the voters in such a way as not to involve two or more distinct and unrelated questions. Stern v. City of Fargo, 18 N.D. 289, 122 N.W. 403, 26 L.R.A. (n.s.) 665 (1909), distinguished, Lang v. City of Cavalier, 59 N.D. 75, 228 N.W. 819 (1930) and Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953); Logan v. Bismarck, 49 N.D. 1178, 194 N.W. 908, 1923 N.D. LEXIS 62 (N.D. 1923).

Statutes governing power of municipality to borrow money when necessary must be strictly construed. Green v. Beste, 76 N.W.2d 165, 1956 N.D. LEXIS 112 (N.D. 1956).

Subdivision (2) of this section generally authorizes a municipal governing body to control municipal finances, pay its debts and expenses, contract debts and borrow money, and to control municipal property; subdivision (5) specifically authorizes the borrowing of money by issuing bonds in accordance with title 21. Subdivision 5 does not provide the exclusive method of borrowing money, but specifies one method of exercising the borrowing authority granted in subdivision 2, particularly when general taxing powers are obligated. Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

Subdivision 7.
—Certificates of Indebtedness.

Agents and officers of a municipal corporation cannot bind the corporation by any act which transcends their lawful or legitimate powers, and this rule applies to the issue of negotiable as well as nonnegotiable evidences of debt. Treadway v. Schnauber, 46 N.W. 464, 1 Dakota 236, 1875 Dakota LEXIS 1 (Dakota 1875).

Certificates of indebtedness may be issued by the governing body of the municipality against taxes already levied without a vote of the electors. Tracy v. Barnes County, 69 N.D. 602, 289 N.W. 377, 1939 N.D. LEXIS 191 (N.D. 1939).

A certificate of indebtedness is an agreement on the part of the taxing district to pay a sum on a specified date with interest at a specified rate, payable out of funds derived from delinquent taxes levied for the current year and four previous years. MURRAY v. MUTSCHELKNAUS, 70 N.D. 1, 291 N.W. 118, 1940 N.D. LEXIS 142 (N.D. 1940). See also 71 N.D. 306, 300 N.W. 460.

Subdivision 8.
—Crosswalks.

It was clear that agreements made between city and department of transportation expressly reserved to the department the right to approve traffic signals, signs, markings and all control measures necessary to establish crosswalks; thus, the city could not establish a crosswalk unless the department approved, and the department, not the city, was vested with control over the establishment of a crosswalk. Yassin v. Schroeder, 469 N.W.2d 368, 1991 N.D. LEXIS 84 (N.D. 1991).

—Dumping Place.

A city is under no obligation to provide a dumping place, but when it does so, it is either as a governmental duty and function or as a pure accommodation to the dumpers and the public. Moulton v. Fargo, 39 N.D. 502, 167 N.W. 717, 1917 N.D. LEXIS 150 (N.D. 1917).

—Eminent Domain.

A city is authorized to lay out and open streets and in so doing to exercise the right of eminent domain. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

The city council may extend streets by eminent domain and its determination of the public necessity therefor is conclusive. City of Grafton v. St. Paul M. & M. Ry., 16 N.D. 313, 113 N.W. 598 (1907).

A determination by the governing body of the necessity for a street is sufficient as a basis to condemn property, whether by ordinance or resolution. Village of Reeder v. Hanson, 55 N.D. 331, 213 N.W. 492, 1927 N.D. LEXIS 41 (N.D. 1927).

City has authority to vacate streets, roads, and alleys within the area of a public housing project, as may be necessary in the development thereof, and to convey without charge the interest which it has in the vacated areas. Ferch v. Housing Auth., 79 N.D. 764, 59 N.W.2d 849, 1953 N.D. LEXIS 76 (N.D. 1953).

Easements for a public roadway and for utilities, water, sewer, and cable television were necessary for a valid public use, and thus the taking was proper. City of Medora v. Golberg, 1997 ND 190, 569 N.W.2d 257, 1997 N.D. LEXIS 228 (N.D. 1997).

—Financing Improvements.

Special assessment is not required to pay for the paving of streets contracted for by the city. Pine Tree Lumber Co. v. City of Fargo, 12 N.D. 360, 96 N.W. 357 (1903), decided prior to the enactment of Session Laws 1905, Chapter 62 (see now N.D.C.C. § 40-22-36).

City council may pay for street grading out of general tax funds without making special assessments. Merchants Nat'l Bank v. Devils Lake, 42 N.D. 445, 173 N.W. 748, 1919 N.D. LEXIS 159 (N.D. 1919).

—Liability for Negligent Management.

Where the duty to keep streets in repair is in terms enjoined upon the corporate authorities, and they are supplied with the means to perform it, the corporation is liable for the results of its negligence in the care and management of its streets without the necessity of an express statute declaring the liability. Larson v. Grand Forks, 19 N.W. 414, 3 Dakota 307, 1884 Dakota LEXIS 5 (Dakota 1884); Ludlow v. Fargo, 3 N.D. 485, 57 N.W. 506, 1893 N.D. LEXIS 44 (N.D. 1893).

—Motor Vehicle Laws.

The powers given to the city by this statute are not limited by later enactments concerning motor vehicles and motor vehicular traffic. State ex rel. Dreyer v. Brekke, 75 N.D. 468, 28 N.W.2d 598, 1947 N.D. LEXIS 84 (N.D. 1947).

—Obstructions.

Where the owner of the fee adjoining a sidewalk seeks to appropriate a part of the sidewalk and to erect a permanent obstruction thereon, the city has both the power to require a permit and to refuse the appropriation of the street and the limiting of the surface over which the public may travel. Kennedy v. Fargo, 40 N.D. 475, 169 N.W. 424, 1918 N.D. LEXIS 112 (N.D. 1918).

A city may remove a house that has been built so as to encroach upon a street. City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

A city may remove island in street and trees growing therein under determination by the governing body that safety and convenience of the public will be served thereby. Dacotah Hotel Co. v. Grand Forks, 111 N.W.2d 513, 1961 N.D. LEXIS 100 (N.D. 1961).

—Parking Meters.

This statute, which gives cities the power to regulate the use of streets, also gives them power to pass an ordinance for parking meters. (Decision prior to enactment of N.D.C.C. § 39-01-09.) State ex rel. Dreyer v. Brekke, 75 N.D. 468, 28 N.W.2d 598, 1947 N.D. LEXIS 84 (N.D. 1947).

—Railroad Right-of-Way.

Governing body is authorized to pass an ordinance extending a street across a railroad right-of-way. Ashley v. Minneapolis, St. Paul, & Sault Ste. Marie Ry., 37 N.D. 147, 163 N.W. 727, 1917 N.D. LEXIS 84 (N.D. 1917).

—Straightening Creek Bed.

Where creek flowed in a zigzag direction through a city, it was within the control and subject to the municipal power of the city, and a contract to straighten the creek bed and divert its flow was not ultra vires since it was executed to drain, improve, and repair the streets and alleys which the creek intersected. McGuire v. Rapid City, 43 N.W. 706, 6 Dakota 346, 1888 Dakota LEXIS 43 (Dakota 1889).

—Strict Construction.

The statute granting the city the power to pave and otherwise improve the streets must be strictly construed. Green v. Beste, 76 N.W.2d 165, 1956 N.D. LEXIS 112 (N.D. 1956); Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

—Territorial Extent of Powers.

The lawful exercise of city’s corporate powers, for governmental and political purposes, is limited to the boundaries of the city, but in the exercise of other corporate functions the city can expend corporate funds for parks, drains, sewers, and other activities outside the city which affect the health, safety, and convenience of its inhabitants. Manning v. City of Devils Lake, 13 N.D. 47, 99 N.W. 51, 65 L.R.A. 187, 112 Am. St. Rep. 652 (1904), decided prior to the enactment of N.D.C.C § 40-60-01 .

—Title to Street.

The fee in the street to the center thereof belongs to the abutting owner, except as conveyed to the public for street purposes. State v. Ehr, 52 N.D. 946, 204 N.W. 867, 1925 N.D. LEXIS 158 (N.D. 1925).

A municipality cannot be divested of the title to its streets held in trust for the use of the public by adverse possession. City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

—Traffic Signals.

A city can control a traffic signal light or establish a pedestrian crosswalk on a state highway only when the director of the department of transportation has delegated, by agreement with the city, his authority over the urban connecting street. Yassin v. Schroeder, 469 N.W.2d 368, 1991 N.D. LEXIS 84 (N.D. 1991).

—Use of Streets.

The city council has authority to regulate the use of bicycles on the sidewalks. Gagnier v. City of Fargo, 11 N.D. 73, 88 N.W. 1030, 95 Am. St. Rep. 705 (1902), decided prior to the adoption of Art. 1, § 16 of the N.D. Const.

The city council has the power to regulate or prevent the use of the streets for telegraph and telephone poles. Donovan v. Allert, 11 N.D. 289, 91 N.W. 441, 58 L.R.A. 775, 95 Am. St. Rep. 720 (1902), decided prior to the adoption of Art. 1, § 16 of the N.D. Const.

Since the use of a street for the moving of houses is extraordinary in nature, although the city permits such use it does not license the house mover to destroy the use of the street for travel or necessary public purposes nor as against the vested rights of telephone company. Northwestern Tel. Exch. Co. v. Anderson, 12 N.D. 585, 98 N.W. 706, 1904 N.D. LEXIS 10 (N.D. 1904).

A city has the power to use and control the use of the entire area of a street for the benefit of the public in accordance with the powers vested in the city by statute. Dacotah Hotel Co. v. Grand Forks, 111 N.W.2d 513, 1961 N.D. LEXIS 100 (N.D. 1961).

Subdivision 10.
—Lighting of Public Places.

A city has the power to provide for lighting of the city, but it cannot exercise such power by contract with another party to erect such a public utility unless and until an ordinance has been passed and approval of the project has been given by the voters. Engstad v. Dinnie, 8 N.D. 1, 76 N.W. 292, 1898 N.D. LEXIS 3 (N.D. 1898).

A city council may contract with an electric company to furnish current to light the city streets and public grounds. Chrysler Light & Power Co. v. Belfield, 58 N.D. 33, 224 N.W. 871, 1929 N.D. LEXIS 178 (N.D. 1929).

Subdivision 12.
—Electric Light Plants.

The legislative assembly may not grant the right to construct and operate an electric plant within any city without requiring its consent. Western Elec. Co. v. Jamestown, 47 N.D. 157, 181 N.W. 363, 1921 N.D. LEXIS 89 (N.D. 1921); Chrysler Light & Power Co. v. Belfield, 58 N.D. 33, 224 N.W. 871, 1929 N.D. LEXIS 178 (N.D. 1929).

Subdivision 13.
—Civil Liability of Property Owner.

At common law, neither the owner nor the occupant of premises, abutting on the sidewalk, was liable for injuries caused by the natural accumulation of snow or ice thereon. Clark v. Stoudt, 73 N.D. 165, 12 N.W.2d 708, 1944 N.D. LEXIS 51 (N.D. 1944).

If the abutting owner discharges water or snow upon the sidewalk or permits it to drip from his roof onto the sidewalk, the owner may be liable in damages to a person who is injured thereby. Clark v. Stoudt, 73 N.D. 165, 12 N.W.2d 708, 1944 N.D. LEXIS 51 (N.D. 1944).

Owners and occupants of property are not liable to a pedestrian for injuries resulting from a fall caused by slipping on snow and ice which, due to natural weather conditions, accumulated on the sidewalk in front of the property, notwithstanding an ordinance penalizing failure to remove such snow and ice. Clark v. Stoudt, 73 N.D. 165, 12 N.W.2d 708, 1944 N.D. LEXIS 51 (N.D. 1944).

—Failure to Comply with Ordinance.

A city ordinance requiring an occupant of property abutting on a street to keep the sidewalk in front of his place free from ice and snow, and providing a penalty for failure to comply with the ordinance, is merely to compel the occupant to assist the city in performing its municipal duty. Clark v. Stoudt, 73 N.D. 165, 12 N.W.2d 708, 1944 N.D. LEXIS 51 (N.D. 1944).

Subdivision 14.
—Rubbish, Disposal of.

The prevention of the scattering of loose papers upon the streets and the burning of them in public places within a city, or even the burning of papers and refuse in the furnaces of buildings, which may result in dense smoke and flying sparks is a matter essentially public in nature and will justify the maintaining of a public dump. Moulton v. Fargo, 39 N.D. 502, 167 N.W. 717, 1917 N.D. LEXIS 150 (N.D. 1917).

Subdivision 16.
—Obstruction of Street.

A permit to move houses on public streets cannot be used to destroy the vested rights of telephone company to erect and maintain poles and wires in such streets. Northwestern Tel. Exch. Co. v. Anderson, 12 N.D. 585, 98 N.W. 706, 1904 N.D. LEXIS 10 (N.D. 1904).

Subdivision 17.
—Sales in Public Places.

A sale of intoxicating liquor upon any public street is bootlegging. State v. Ehr, 52 N.D. 946, 204 N.W. 867, 1925 N.D. LEXIS 158 (N.D. 1925).

Subdivision 18.
—Speed.

The effect of an ordinance under prior law, regulating the speed of railroad trains, cars, and engines within a city’s corporate limits, was to make the streets safer and more convenient to the public. Edwards v. Great N. Ry., 42 N.D. 154, 171 N.W. 873, 1919 N.D. LEXIS 118 (N.D. 1919).

Subdivision 21.
—Railroad Crossings.

Cities having a commission form of government have authority to require railroad companies to keep flagmen at railroad crossings of streets. Edwards v. Great N. Ry., 42 N.D. 154, 171 N.W. 873, 1919 N.D. LEXIS 118 (N.D. 1919).

Subdivision 22.
—Extending Ways over Railroad Property.

The municipality is authorized to pass an ordinance extending a street across a railroad right-of-way. City of Grafton v. St. Paul M. & M. Ry., 16 N.D. 313, 113 N.W. 598 (1907); Ashley v. Minneapolis, St. Paul, & Sault Ste. Marie Ry., 37 N.D. 147, 163 N.W. 727, 1917 N.D. LEXIS 84 (N.D. 1917).

City need not allege or prove the public necessity for street across railroad and the only question to be determined by the court is the necessity for taking of the specific property for such public use. City of Grafton v. St. Paul M. & M. Ry., 16 N.D. 313, 113 N.W. 598 (1907).

Municipalities may proceed to extend streets across railroads under a general power of appropriation. Ashley v. Minneapolis, St. Paul, & Sault Ste. Marie Ry., 37 N.D. 147, 163 N.W. 727, 1917 N.D. LEXIS 84 (N.D. 1917).

Subdivision 23.
—Extending Sewer Service.

Where city is given express authority to furnish water outside of city under certain circumstances, it has, by implication, power to furnish sewer service to such areas outside of city; since furnishing of sewer service within city grants only license to users, power to furnish such service to users outside city is no greater. Where license to out-of-city users was granted in interest of national defense any action of city revoking such license after defense project had been completed would not be arbitrary or unreasonable. Satrom v. Grand Forks, 163 N.W.2d 522, 1968 N.D. LEXIS 87 (N.D. 1968).

Subdivision 25.
—Plumbing Regulations.

A city ordinance licensing plumbers is not unconstitutional because it requires a licensee to furnish a surety bond. State ex rel. Bismarck v. District Court, 64 N.D. 399, 253 N.W. 744, 1934 N.D. LEXIS 213 (N.D. 1934).

A state, through a city as the state’s agency, has the right to regulate the licensing of plumbers and the business of plumbing in the interests of public health. State ex rel. Bismarck v. District Court, 64 N.D. 399, 253 N.W. 744, 1934 N.D. LEXIS 213 (N.D. 1934).

Installation and servicing of water softeners by persons not holding plumbing license was in violation of municipal ordinance requiring plumbers to be licensed, since under this section “plumbing” includes installation and service of water softeners. Bob Rosen Water Conditioning Co. v. Bismarck, 181 N.W.2d 722, 1970 N.D. LEXIS 151 (N.D. 1970).

Subdivision 26.
—Licensing of Amusements.

City had authority to enact ordinance requiring the licensing of motion picture booths used for viewing sexually explicit films and to establish a licensing fee designed to defray the costs of issuing the license and the reasonable cost of policing the licensed activity. City of Minot v. Central Ave. News, 308 N.W.2d 851, 1981 N.D. LEXIS 340 (N.D. 1981).

Subdivision 27.
—Abuse of Discretion.

Commissioners’ determination that taxicab license should not be granted will not be disturbed by the court unless they acted arbitrarily or unreasonably in so doing. Bryan v. Olson, 68 N.D. 605, 282 N.W. 405, 1938 N.D. LEXIS 150 (N.D. 1938).

—Constitutionality of Ordinance.

A city ordinance licensing and regulating automobiles and taxicabs, if the license fees are not per se excessive, is a regulatory and not a tax measure and does not deny equal protection or due process. Ex parte Bryan, 66 N.D. 241, 264 N.W. 539, 1936 N.D. LEXIS 167 (N.D. 1936).

—Delegation of Authority.

A city may by appropriate ordinance delegate to designated city officials the authority to license taxicabs operating upon city streets under standards which promote public safety and convenience. Ex parte Bryan, 66 N.D. 241, 264 N.W. 539, 1936 N.D. LEXIS 167 (N.D. 1936).

—Liability Insurance.

A municipality, under its police powers to regulate the operation of public service motor vehicles within the city limits, may require a bond, policy of liability insurance, or other security as a condition to the operation of such motor vehicles for hire upon the streets of the municipality. James v. Young, 77 N.D. 451, 43 N.W.2d 692, 1950 N.D. LEXIS 142 (N.D. 1950).

—Private Use of Wagon.

A city has no power to exact a license for the general use of streets from an individual driving a wagon which hauls his own property. CITY OF CASSELTON v. LEE, 54 N.D. 1, 208 N.W. 400, 1926 N.D. LEXIS 104 (N.D. 1926).

Subdivision 29.
—Alcoholic Beverages.

City ordinance requiring applicant for a liquor license to be a resident of the city was valid and not preempted by, nor in conflict with, state liquor licensing laws. In re Retail Liquor License No. 15, 283 N.W.2d 170, 1979 N.D. LEXIS 286 (N.D. 1979).

A liquor license has the qualities of an intangible property right as to third parties, and thus an agreement between mortgagors and mortgagees providing for transfer of liquor license to the party designated by mortgagee upon default was not invalid. Federal Sav. & Loan Ins. Corp. v. Morque, 372 N.W.2d 872, 1985 N.D. LEXIS 369 (N.D. 1985).

Where city ordinance specified that city commission should consider several factors when deciding whether to permit transfer of alcohol license, failure to make findings on several factors listed in ordinance was not error. Fargo Beverage Co. v. Fargo, 459 N.W.2d 770, 1990 N.D. LEXIS 156 (N.D. 1990).

A liquor license confers no vested rights which a licensing authority may not revoke or terminate and is subject to changing regulations or even to legislative cancellation. Fargo Beverage Co. v. Fargo, 459 N.W.2d 770, 1990 N.D. LEXIS 156 (N.D. 1990).

In reviewing a municipality’s issuance or denial of a liquor license, supreme court adheres to traditional virtues of judicial restraint and does not act as a super board of review. Lynch v. Williston City Comm'n, 460 N.W.2d 136, 1990 N.D. LEXIS 187 (N.D. 1990).

Judicial review of local commission’s transfer of liquor licenses upon a writ of certiorari is limited to the question of whether the commission exceeded its jurisdiction. Lynch v. Williston City Comm'n, 460 N.W.2d 136, 1990 N.D. LEXIS 187 (N.D. 1990).

Subdivision 34.
—Discretion of Municipality.

What the limits of a fire district shall be is largely a matter of discretion within the municipality. Village of Ashley v. Ashley Lumber Co., 40 N.D. 515, 169 N.W. 87, 1918 N.D. LEXIS 104 (N.D. 1918).

The city building inspector is not required to issue a building permit for construction of bulk oil station within the fireproof building limits of the city. Midland Produce Co. v. Minot, 70 N.D. 256, 294 N.W. 192, 1940 N.D. LEXIS 168 (N.D. 1940).

Injunction against city council will be denied where evidence was conflicting as to whether the building in question had deteriorated to such an extent that it could not be repaired, in the absence of a showing by property owner that the council’s action was an abuse of discretion. SODERFELT v. CITY OF DRAYTON, 79 N.D. 742, 59 N.W.2d 502, 1953 N.D. LEXIS 75 (N.D. 1953).

—New Building.

Repairing or remodeling a wooden building is not the construction of a “new building” as that expression is commonly used, so does not violate city ordinance making it unlawful to construct any wooden building within the fire limits. City of Mayville v. Rosing, 19 N.D. 98, 123 N.W. 393, 1909 N.D. LEXIS 91 (N.D. 1909).

—Strict Construction of Statute.

Statutory provisions giving municipal corporations power to prescribe fire limits and direct the removal of buildings therein, which may be damaged to a certain extent, should receive a strict construction in favor of the owners of such buildings. Russell v. Fargo, 28 N.D. 300, 148 N.W. 610, 1914 N.D. LEXIS 108 (N.D. 1914).

—Vested Rights.

Where fire limits have been established after a building has been erected, the owner has acquired a vested right of which he cannot be deprived without some lawful reasons. Russell v. Fargo, 28 N.D. 300, 148 N.W. 610, 1914 N.D. LEXIS 108 (N.D. 1914).

Subdivision 35.
—Fire Hazards.

This subdivision clearly authorizes a city ordinance placing collection of refuse and waste matter exclusively in the hands of a licensed garbage collector. Tayloe v. Wahpeton, 62 N.W.2d 31, 1953 N.D. LEXIS 85 (N.D. 1953).

Subdivision 36.
—Approval of Voters.

The question of acquiring waterworks by purchase, lease, or original construction does not have to be submitted to the voters at any general or special election. Logan v. Bismarck, 49 N.D. 1178, 194 N.W. 908, 1923 N.D. LEXIS 62 (N.D. 1923).

—Competitive Bidding.

A municipal contract for the erection of filtration plants and similar buildings need not be let upon competitive bids. Price v. Fargo, 24 N.D. 440, 139 N.W. 1054, 1913 N.D. LEXIS 13 (N.D. 1913).

—Fire Apparatus.

The power to purchase apparatus for extinguishing fires is clearly within the legislative grant of powers to municipal corporations. W. S. Nott Co. v. Sawyer, 35 N.D. 587, 161 N.W. 202, 1917 N.D. LEXIS 4 (N.D. 1917).

—Repair Expense.

A city may sever the connection of a lateral service pipe in a street with the water mains where the abutting owner refuses to pay the expense of repairing a break therein. Jackson v. Ellendale, 4 N.D. 478, 61 N.W. 1030, 1894 N.D. LEXIS 51 (N.D. 1894).

—Waterwork Systems.

Applying the rule of strict construction, subdivision 36 of this section clearly grants to municipal corporations the general authority to maintain a public water system and to fix and regulate the rates, use and sale of water. A city’s determination of which persons or entities will be held liable for water furnished to a particular geographic location is a matter encompassing a manner and means of exercising that general authority. Meyer v. Dickinson, 451 N.W.2d 113, 1990 N.D. LEXIS 27 (N.D. 1990).

City’s determination that a lien for delinquent water bills may be placed upon property receiving water service was a matter encompassing a manner and means of exercising its general authority to set rates and conditions for the sale of water. Meyer v. Dickinson, 451 N.W.2d 113, 1990 N.D. LEXIS 27 (N.D. 1990).

Subdivision 38.
—Storage of Combustible Material.

Building commissioner does not have to issue permit to build bulk oil station within fireproof building limits of city. Midland Produce Co. v. Minot, 70 N.D. 256, 294 N.W. 192, 1940 N.D. LEXIS 168 (N.D. 1940).

Subdivision 41.
—Jails.

This subdivision gives the city the power to establish and maintain a jail, but does not place upon the city the duty to do so. Trinty Hosp. Ass'n v. Minot, 76 N.W.2d 916, 1956 N.D. LEXIS 125 (N.D. 1956).

Where prisoners convicted of violations of city ordinances are accepted by the county jail for a number of years, the use of the jail by the city will be deemed to have been consented to by the county commissioners and the city is deemed to have impliedly contracted to pay for the maintenance of the prisoners. Grand Forks County v. Grand Forks, 123 N.W.2d 42, 1963 N.D. LEXIS 104 (N.D. 1963).

Subdivision 44.
—Nuisances.

The power to have building condemned as a fire hazard is inoperative and void unless the building is, in fact, a nuisance. Russell v. Fargo, 28 N.D. 300, 148 N.W. 610, 1914 N.D. LEXIS 108 (N.D. 1914).

An ordinance which provides that no undertaking establishment shall be established or maintained within those parts of the city occupied mainly for residences is indefinite and uncertain, and, therefore, invalid. Wasem v. Fargo, 49 N.D. 168, 190 N.W. 546, 1922 N.D. LEXIS 34 (N.D. 1922).

Under this subdivision, a city has the power to remove a house built partly in a street in opposition to a city ordinance. City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

Subdivision 45.
—Health Regulations.

Municipal ordinances intending to protect the public health, safety, and welfare are founded upon the police power inherent in the state and granted by it to the municipality. Tayloe v. Wahpeton, 62 N.W.2d 31, 1953 N.D. LEXIS 85 (N.D. 1953).

Subdivision 46.
—Cemeteries.

The municipality may maintain and regulate cemeteries outside its corporate boundaries because such power affects the health of its inhabitants. Manning v. City of Devils Lake, 13 N.D. 47, 99 N.W. 51, 65 L.R.A. 187, 112 Am. St. Rep. 652 (1904), decided prior to the enactment of N.D.C.C § 40-60-01.

Subdivision 47.
—Dog Tax.

Municipal corporations may levy a tax on the privilege of keeping dogs, such tax being regarded as a specific assessment or license. Village of Litchville v. Hanson, 19 N.D. 672, 124 N.W. 1119, 1910 N.D. LEXIS 17 (N.D. 1910); City of Dickinson v. Thress, 69 N.D. 748, 290 N.W. 653, 1940 N.D. LEXIS 204 (N.D. 1940).

Subdivision 50.
—Rent of Public Buildings.

Duty to rent public auditorium to all applicants therefor is not mandatory, and it rests in the discretion of the municipality to determine to whom they will rent such building. State ex rel. Herbrandson v. Vesperman, 52 N.D. 641, 204 N.W. 202, 1925 N.D. LEXIS 129 (N.D. 1925).

—Sale-Leaseback-Purchase Transaction.

A three-step sale-leaseback-purchase transaction employed by the city to fund the construction of improvements to its civic center, library and a watermain, with a nonappropriation mechanism to make clear that its general taxing powers were not obligated, was a reasonable exercise of the general powers granted in subdivision (2) of this section and the specific powers granted in subdivisions (50), (Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

Subdivision 52.
—Supply Contracts.

This subdivision does not require that all public contracts be let by competition. Price v. Fargo, 24 N.D. 440, 139 N.W. 1054, 1913 N.D. LEXIS 13 (N.D. 1913).

Subdivision 55.
—Conflict with Township Zoning Ordinance.

City-acquired property located outside the city limits is not automatically exempt from township zoning ordinances; there must be a balancing of the public interests to determine if such exemption should be allowed, with the city having the burden of proof that the balance of interests is on its side. Fargo v. Harwood Township, 256 N.W.2d 694, 1977 N.D. LEXIS 148 (N.D. 1977).

Subdivision 56.
—Option to Purchase Realty.

A city has power to grant an option on the purchase of real property. Dahl v. Grafton, 286 N.W.2d 774, 1979 N.D. LEXIS 322 (N.D. 1979).

—Transfer of Property.

The city commission has the power to dispose of “for the use of the city” any lien, or interest in, real property which the city acquired by reason of the misconduct of its treasurer, and to convert it into money. City of Williston v. Ludowese, 53 N.D. 797, 208 N.W. 82, 1926 N.D. LEXIS 24 (N.D. 1926).

Subdivision 57.
—Franchises.

Where plaintiff claimed it was unconstitutionally deprived of a protected property interest in an exclusive cable franchise, the United States district court found that this subdivision did not permit an exclusive franchise, and if one had been granted, it would probably have violated the other applicants’ free speech rights under the First Amendment of the United States Constitution.International Broadcasting Corp. v. Bismarck, 697 F. Supp. 1094, 1987 U.S. Dist. LEXIS 14220 (D.N.D. 1987).

—Franchise Time Limit.

City’s agreement to share in cost of construction and use of water main was limited by this subsection; where twenty-year period had expired, pipeline company outside city limits had no right to continue to receive water service; subsection uses word “franchise” and “privilege” interchangeably. Williams Bros. Pipe Line Co. v. Grand Forks, 163 N.W.2d 517, 1968 N.D. LEXIS 90 (N.D. 1968).

Subdivision 59.
—Public Works.

A city can enter into a cooperative agreement with a housing authority on matters which are within the general powers granted the city. Ferch v. Housing Auth., 79 N.D. 764, 59 N.W.2d 849, 1953 N.D. LEXIS 76 (N.D. 1953).

The power vested in municipalities to own and operate electric light and power plants does not derogate the state’s sovereign powers to manage, maintain, and operate its charitable institutions, including powers to purchase light and power, regardless of whether they are located within or without the limits of a municipality. City of Grafton v. Otter Tail Power Co., 86 N.W.2d 197, 1957 N.D. LEXIS 167 (N.D. 1957).

Subdivision 69.
—Employee Pensions.

City’s power to provide compensation for its employees was not governed by N.D.C.C. § 40-05-01(69) because the city was a home rule city and had availed itself of the power to regulate employee compensation and supersede state law under N.D.C.C. § 40-05.1-06 by implementing its home rule charter compensation provision by ordinance; section 40-05-01(69) provided that a municipality had the power to consolidate existing pension plans, which the city did when it repealed the prior ordinances providing separate pension plans and enacted a new ordinance for a combined employee pension plan. Klug v. City of Minot, 2011 ND 67, 795 N.W.2d 906, 2011 N.D. LEXIS 68 (N.D. 2011).

Collateral References.

Contributory negligence as defense in action by municipality, 1 A.L.R.2d 827.

Off-street parking facilities, 8 A.L.R.2d 373.

Validity of conditions imposed by municipality to approval of subdivision map or plat, 11 A.L.R.2d 524, 532.

Constitutional rights of owner as against destruction of building by public authorities, 14 A.L.R.2d 73.

Milk to be sold in city, validity of municipal ordinance imposing requirements on outside producers of, 14 A.L.R.2d 103.

Police power of municipal corporation, extension of, beyond territorial limits, 14 A.L.R.2d 103.

Compromise of claim, power of city or its officials as to, 15 A.L.R.2d 1359.

Tourist or trailer camps, motor courts or motels, maintenance and regulation by public authorities, 22 A.L.R.2d 774, 793.

Labor union organization and activities of public employees, 31 A.L.R.2d 1142.

Capacity of municipality as trustee for maintenance or care of private cemetery, burial lot, tomb, or monument, or erection of tomb or monument, 47 A.L.R.2d 596, 622.

Right to compel municipality to extend its water system beyond its territorial limits, 48 A.L.R.2d 1222.

Airport, liability of municipality for torts in connection with, 66 A.L.R.2d 634.

Conflict of laws: right of state or its political subdivision to maintain action in another state for support and maintenance of defendant’s child, parent, or dependent in plaintiff’s institution, 67 A.L.R.2d 771.

Insurance: liability or indemnity insurance carried by governmental unit as affecting immunity from tort liability, 68 A.L.R.2d 1437.

Loop-o-plane, etc.: liability of municipal corporation for injury or death on or near loop-o-plane, ferris wheel, miniature car, or similar ride, 86 A.L.R.2d 350.

Municipal liability for personal injuries resulting from police officer’s use of excessive force in performance of duty, 88 A.L.R.2d 1330.

Personal liability of public officer for killing or injuring animal while carrying out statutory duties with respect to it, 2 A.L.R.3d 822.

Prohibiting or regulating removal or exploitation of oil and gas, minerals, soil, or other natural products within municipal limits, 10 A.L.R.3d 1226.

Validity of vagrancy statutes and ordinances, 25 A.L.R.3d 792.

Power of eminent domain as between state and subdivision or agency thereof, or as between different subdivisions or agencies themselves, 35 A.L.R.3d 1293.

Labor law: Right of public employees to strike or engage in work stoppage, 37 A.L.R.3d 1147.

Validity and construction of municipal ordinances regulating community antenna television service (CATV), 41 A.L.R.3d 384.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility, 42 A.L.R.3d 426.

Validity and construction of statute or ordinance providing for repair or destruction of residential building by public authorities at owner’s expense, 43 A.L.R.3d 916.

Power of municipal corporation to limit exclusive use of designated lanes or streets to buses and taxicabs, 43 A.L.R.3d 1394.

Estoppel of municipality as to encroachments upon public streets, 44 A.L.R.3d 257.

Power of municipal corporation to lease or sublet property owned or leased by it, 47 A.L.R.3d 19.

Validity of regulation providing for reserved parking spaces or parking priority on publicly owned property for members of a designated group, 70 A.L.R.3d 1323.

Validity and construction of statute or ordinance proscribing solicitation for purposes of prostitution, lewdness, or assignation — modern cases, 77 A.L.R.3d 519.

Doctrine of apparent authority as applied to agent of municipality, 77 A.L.R.3d 925.

Validity of statutes, ordinances, and regulation requiring the installation or maintenance of various bathroom facilities in dwelling units, 79 A.L.R.3d 716.

Regulation of astrology, clairvoyancy, fortunetelling, and the like, 91 A.L.R.3d 766.

Union security arrangements in state public employment, 95 A.L.R.3d 1102.

Liability for wrongful autopsy, 18 A.L.R.4th 858.

Legal aspects of speed bumps, 60 A.L.R.4th 1249.

Products liability: building and construction lumber, 61 A.L.R.4th 121.

Zoning regulation of intoxicating liquor as pre-empted by state law, 65 A.L.R.4th 555.

Municipal liability for negligent performance of building inspector’s duties, 24 A.L.R.5th 200.

Liability of electric company to one other than employee for injury or death arising from commencement or resumption of service, 46 A.L.R.5th 423.

Validity, construction, and application of loitering statutes and ordinances, 72 A.L.R.5th 1.

Construction and Application of “Municipal Cost Recovery Rule,” or “Free Public Services Doctrine”, 32 A.L.R.6th 261.

Law Reviews.

Municipal Corporation — Legislative Control of Municipal Acts, Rights and Liabilities — Home Rule Cities Lack Authority to Create Random Forms of Government, 57 N.D. L. Rev. 655 (1981).

North Dakota Supreme Court Review (Capital Elec. Coop. v. Bismarck, 2007 ND 128, 736 N.W.2d 788 (2007)), see 84 N.D. L. Rev. 567 (2008).

40-05-01.1. Assessment of costs of work done necessary for the general welfare.

Whenever it becomes necessary for the general welfare, public health, fire protection, or public safety to order an owner or occupant of property to do certain work provided for by ordinance, and such owner or occupant refuses to conduct or comply with such order, the work may be done by the municipality and the owner or occupant of such property billed for the same by the municipality, or whenever a municipality for the general welfare, public health, fire protection, or public safety establishes by ordinance and maintains and operates a garbage and rubbish collection and removal system, the cost of such service may be charged to the owner or occupant of the property served. If such bill is not paid when due, the amount thereof may be assessed against the premises on which such work is done, or for which the service is rendered, and collected and returned in the same manner as other municipal taxes are assessed, certified, collected, and returned. This section shall not be construed to limit or affect in any manner any methods which now or in the future may be used for the collection of costs incurred by the municipality for the purposes set forth in this section, but the remedies provided for herein shall be in addition to such methods.

Source: S.L. 1949, ch. 270, §§ 1, 2; 1951, ch. 261, § 1; R.C. 1943, 1957 Supp., §§ 40-05011, 40-05012.

Notes to Decisions

Fees Charged to Nonuser.

Since an owner’s property is “served” by a municipality’s garbage collection service through receipt of tangible benefits of a uniform system of collection to protect the public health, fees charged a property owner who did not use a city’s collection service were not in excess of the city’s authority and did not violate the property owner’s substantive due process rights. Ennis v. City of Ray, 1999 ND 104, 595 N.W.2d 305, 1999 N.D. LEXIS 104 (N.D. 1999).

40-05-01.2. Remedies additional and not restrictive. [Repealed]

Repealed by omission from this code.

40-05-01.3. City traffic ordinances to apply to streets within mobile home parks.

Every city ordinance regulating the operation or equipment of motor vehicles or regulating traffic shall apply to the private ways, streets, lanes, and alleys of mobile home parks, trailer parks, and campgrounds containing five or more lots for occupancy by mobile homes, travel trailers, or tents.

Source: S.L. 1977, ch. 376, § 2.

40-05-02. Additional powers of city council and board of city commissioners.

The city council in a city operating under the council form of government and the board of city commissioners in a city operating under the commission system of government, in addition to the powers possessed by all municipalities, shall have power:

  1. Street railway and railway tracks. To permit, regulate, or prohibit the locating, constructing, or laying of railway or street railway tracks in any street, alley, or public place, and any permission given to a street railway may not be for a longer period than fifty years.
  2. Sale of milk. To license the sale of milk.
  3. Lumber, wood, coal, hay, and merchandise — Municipal scales. To regulate the inspecting, weighing, and measuring of lumber, firewood, coal, hay, and other articles of merchandise; establish or purchase one or more city scales and to require dealers in hay, coal, firewood, or any other commodity, which, in the judgment of the governing body, should be weighed upon the city scales, to use such scales in the sale of such commodity; and charge a reasonable fee for the use of such scales.
  4. Fences and party walls. To regulate partition fences and party walls.
  5. Jail, house of correction, workhouse. To establish, maintain, and regulate a city jail, house of correction, and workhouse for the confinement and reformation of disorderly persons convicted of violating any city ordinance and to appoint necessary jailers and keepers.
  6. Building permits. To provide by ordinance and to fix the fees for the issuance of building permits.
  7. Building construction — Fire escapes. To prescribe the manner of constructing buildings, structures, and the walls thereof, require and regulate the construction of fire escapes on buildings, and provide for the inspection of all buildings within the limits of the municipality and for the appointment of a building inspector.
  8. Bridges, viaducts, tunnels, and overhead pedestrian bridges. To construct, keep in repair, and regulate the use of bridges, viaducts, overhead pedestrian bridges, and tunnels.
  9. Police. To regulate the police of the municipality and to pass and enforce all necessary police ordinances.
  10. Hospitals and medical dispensaries. To establish, control, and regulate hospitals and medical dispensaries.
  11. Census. To provide for the taking of a census of the city, but no city census may be taken more often than once in every three years.
  12. Redistricting city. To redistrict the city into wards and to prescribe the boundaries thereof.
  13. Zoning. To adopt a zoning ordinance as provided in this title; regulate the location of junk shops, coalyards, garages, machine shops, power laundries, hospitals, and undertaking establishments; and establish building lines fixing the distance from the property line at which buildings may be erected.
  14. Traffic regulation. To regulate, control, or restrict within designated zones, or congested traffic districts, except that the speed limit for vehicles on those streets designated as part of any state highway must be as determined by mutual agreement with the director of the department of transportation, the use of streets, alleys, or other public ways by various classes of traffic.
  15. Driving while intoxicated. To prohibit by ordinance the operation of any motor vehicle or other conveyance upon the streets, alleys, or other public or private areas to which the public has a right of access for vehicular use within the city by any person under the influence of intoxicating liquor or a controlled substance.
  16. Tourist camps. To license, regulate, and fix the location of any public or private tourist camp within the city.
  17. Water supply. To withdraw from any stream, watercourse, or body of water within or without a city, or within or without, or bordering upon, this state, a supply of water reasonably sufficient for the needs of the inhabitants of the city, and to supply the facilities for the storage of water for all other necessary municipal purposes.
  18. Dams for municipal water purposes. To erect dams upon or across streams, watercourses, or bodies of water within or without, or bordering upon, the boundaries of this state, and to improve, alter, or protect the bed, banks, or course thereof.
  19. Water supply — Acquire necessary property. To acquire by gift, grant, lease, easement, purchase, or, subject to chapter 32-15, by eminent domain, and to own, operate, maintain, and improve, all lands, structures, power plants, public works, and personal property, whether within or without this state, necessary for the maintenance and conservation of its water supply.
  20. Abandoned or unclaimed personal property. To provide by ordinance for the taking, storage, and disposal of any personal property abandoned or left unclaimed upon the streets, alleys, or other public ways of the city for a period exceeding ten days, and, after holding such property for a period of not less than sixty days, to sell the same at public sale after a notice published or posted at least ten days before the sale, and at such place, and in such manner as may be provided by ordinance. Upon the sale of the property, the city shall convey to the purchaser a merchantable title by a bill of sale. At any time within six months after the sale, the owner of the property, upon written application, is entitled to receive the proceeds of the sale from the city, less the necessary expense of taking, storing, and selling the property. The owner of the property may reclaim it at any time prior to the sale upon payment of the necessary expense of taking and storing.
  21. Auditoriums and public buildings. To take charge of a fully completed auditorium or other property originally purchased or acquired for public use by public subscription, donation, sale of stock, or otherwise, if such auditorium or other property has been abandoned or lost by the original owner or owners, their successors or assigns, and to operate, maintain, repair, and keep such property for public use. In the ownership, management, use, or operation thereof, the city must be deemed to be exercising a governmental function.
  22. Dogs. To license dogs, and to regulate the keeping of dogs, including authorization for their disposition or destruction in order to protect the health, safety, and general welfare of the public provided, however, that license fees are waived in the case of an assistance dog.
  23. Substandard buildings or structures. The governing body of any city shall have the authority to provide by ordinance for the demolition, repair, or removal of any building or structure located within the limits of such city or other territory under its jurisdiction, which creates a fire hazard, is dangerous to the safety of the occupants or persons frequenting such premises, or is permitted by the owner to remain in a dilapidated condition. Any such ordinance must provide for written notice to the owner of a hearing by the governing body before final action is taken by such body. It must also provide a reasonable time within which an appeal may be taken by the owner from any final order entered by such governing body to a court of competent jurisdiction. The amount of the cost of any demolition, repair, or removal of a building or structure constitutes a lien against the real property from which the cost was incurred and the lien may be foreclosed in judicial proceedings in the manner provided by law for loans secured by liens on real property. If this amount is not adequate to cover the cost of demolition, repair, or removal, the city has a lien for the amount of the additional costs on all real property owned, or later acquired, by the owner in the city. If the city provides the amount of the lien and the name of the owner, the county auditor shall enter on the tax list the amount of the additional cost as a tax lien. The tax lien is enforceable by the city in the same manner as a tax lien by a county. This subsection in no way limits or restricts any authority which is now or may hereafter be vested in the state fire marshal for the regulation or control of such buildings or structures.
  24. Assault and battery. To prohibit by ordinance and prescribe the punishment for the commission of assault and battery within the jurisdiction of the city.
  25. Theft. To prohibit by ordinance and prescribe the punishment for the commission of theft, as defined by chapter 12.1-23, within the jurisdiction of the city.
  26. Peace bonds. To provide by ordinance for the issuance of peace bonds by the municipal judge in accordance with the procedure in chapter 29-02.
  27. Public transportation. To provide by ordinance for the purchase, acquisition, or establishment, and operation of a public transportation system. In the alternative, to provide for payments under a contract, approved by the governing body of the city, with a private contractor, for the provision and operation of a public transportation system within the city.
  28. Traffic violation hearings. To enact an ordinance equivalent to section 39-06.1-04; provided, that the penalty assessed may not exceed that authorized by section 40-05-06.
  29. Marijuana possession. To prohibit by ordinance any person, except a person operating a motor vehicle, from possessing not more than one ounce [28.35 grams] of marijuana, as defined by section 19-03.1-01, within the jurisdiction of a city, and to prescribe the punishment, provided the penalty assessed is subject to subsection 9 of section 19-03.1-23.
  30. Establishment of administrative boards. To establish administrative boards or committees for the limited purpose of adjudicating a violation of a noncriminal city ordinance or noncriminal city code. An administrative board or committee may impose fines or other noncriminal penalties, including issuing orders of suspension and revocation of a permit or license. A decision by an administrative board or committee is subject to appeal to the governing body of the municipality.

Source: Pol. C. 1877, ch. 24, § 22; S.L. 1887, ch. 73, art. 4, § 1; 1887, ch. 106, § 1; 1890, ch. 100, §§ 1, 2; R.C. 1895, §§ 2148, 2365; S.L. 1897, ch. 102, § 1; 1897, ch. 148, § 1; 1899, ch. 40, § 1; R.C. 1899, §§ 2148, 2365; S.L. 1905, ch. 62, § 47; 1905, ch. 186, § 1; R.C. 1905, §§ 2678, 2864; S.L. 1907, ch. 45, § 48; 1907, ch. 268, § 1; 1911, ch. 77, § 48; 1911, ch. 79, § 1; 1913, ch. 81, § 1; 1913, ch. 291, § 1; C.L. 1913, §§ 3599, 3818, 3861; S.L. 1933, ch. 175, § 1; R.C. 1943, § 40-0502; S.L. 1945, ch. 252, §§ 1, 2; 1957 Supp., § 40-0502; S.L. 1959, ch. 285, § 5; 1967, ch. 324, § 1; 1969, ch. 368, § 1; 1971, ch. 388, § 1; 1975, ch. 106, § 453; 1975, ch. 339, §§ 20, 21; 1981, ch. 408, § 1; 1983, ch. 455, § 1; 1987, ch. 73, § 25; 1987, ch. 490, § 1; 2001, ch. 258, § 7; 2007, ch. 293, § 18; 2009, ch. 347, § 1; 2015, ch. 278, § 1, effective August 1, 2015; 2017, ch. 164, § 12, effective August 1, 2017; 2019, ch. 187, § 8, effective August 1, 2019.

Cross-References.

Bridges, construction by board of county commissioners, see § 24-08-01.

Bridges, issuance of bonds to meet construction expenses of, see § 24-08-07.

Building permits, inspection of construction requiring, see § 54-21.2-04.

Highways, classification as to weight and load capacities, see § 39-12-01.

Hospital, permission to establish in residence block of city, see § 23-12-04.

Jails, see ch. 12-44.1.

Parking meters prohibited, see § 39-01-09.

Speed limitations, powers of local authorities, see § 39-09-03.

Traffic-control devices and parking signs, erection, see §§ 39-10-04, 39-13-03.

Notes to Decisions

Subdivision 5.
—Jail.

This subdivision does not place upon the city the duty to establish and maintain a jail, but merely gives it the power to do so. Trinty Hosp. Ass'n v. Minot, 76 N.W.2d 916, 1956 N.D. LEXIS 125 (N.D. 1956).

Subdivision 6.
—Building Permits.

The construction of an areaway to permit direct access from the sidewalk to a basement is an alteration of the building within the meaning of an ordinance requiring a permit therefor. Kennedy v. Fargo, 40 N.D. 475, 169 N.W. 424, 1918 N.D. LEXIS 112 (N.D. 1918).

Mandamus will not lie to compel members of city council to issue a building permit. Midland Produce Co. v. Minot, 70 N.D. 256, 294 N.W. 192, 1940 N.D. LEXIS 168 (N.D. 1940).

Subdivision 7.
—Fire Escapes.

City ordinances dealing with fire escapes must be consistent with state law. Klingensmith v. Siegal, 57 N.D. 768, 224 N.W. 680, 1929 N.D. LEXIS 324 (N.D. 1929).

Subdivision 8.
—Bridges.

Bridges may not be built by a municipality outside the corporate limits where the direct purpose of the expenditure is for the benefit of only those who will travel the road, and the businessmen who will profit by their trade. Manning v. City of Devils Lake, 13 N.D. 47, 99 N.W. 51, 65 L.R.A. 187, 112 Am. St. Rep. 652 (1904), decided prior to the enactment of N.D.C.C § 40-60-01.

Subdivision 10.
—Hospitals.

A person affected with smallpox who is removed to a county pesthouse by official order may be held liable for medicine and medical attendance furnished by a physician employed by the county if he accepts such services without objection and receives the benefit thereof. Ostland v. Porter, 25 N.W. 731, 4 Dakota 98, 1885 Dakota LEXIS 13 (Dakota 1885).

Subdivision 13.
—Zoning.

An ordinance which provides that no undertaking establishment shall be established or maintained within those parts of the city occupied mainly for residences is indefinite and uncertain, and, therefore, invalid. Wasem v. Fargo, 49 N.D. 168, 190 N.W. 546, 1922 N.D. LEXIS 34 (N.D. 1922).

The power of a city to establish building lines fixing the distance from the property line at which buildings may be erected carries with it the power to prescribe reasonable regulations concerning side yards. Ujka v. Sturdevant, 65 N.W.2d 292, 1954 N.D. LEXIS 88 (N.D. 1954).

Subdivision 14.
—Crosswalks.

It was clear that agreements made between city and department of transportation expressly reserved to the department the right to approve traffic signals, signs, markings and all control measures necessary to establish crosswalks; thus, the city could not establish a crosswalk unless the department approved, and the department, not the city, was vested with control over the establishment of a crosswalk. Yassin v. Schroeder, 469 N.W.2d 368, 1991 N.D. LEXIS 84 (N.D. 1991).

—Parking Meters.

Municipalities have the right to establish and maintain parking meters in the exercise of their power to regulate the use of the streets. (Decision prior to enactment of section 39-01-09.) State ex rel. Dreyer v. Brekke, 75 N.D. 468, 28 N.W.2d 598, 1947 N.D. LEXIS 84 (N.D. 1947).

—State Highways in Cities.

Read in conjunction with N.D.C.C. § 24-01-02, which gives the director of the department of transportation complete authority to designate what roads compose the state highway, and N.D.C.C. § 24-01-03, which makes the director responsible for constructing the state highway system, subdivision (14) of this section authorizes cities to regulate by classes of traffic the use of public ways within cities, including those city streets designated as state highways. Ebach v. Ralston, 469 N.W.2d 801, 1991 N.D. LEXIS 81 (N.D. 1991).

Subdivision (14) of this section authorizes a city to regulate the use of state highways by people, animals and vehicles within cities, except that the setting of speed limits requires the consent of the director of the department of transportation. A city’s power does not, however, reach the design or the alteration of the roadway or the use of a traffic signal controlling the state highway, which are within the sole authority of the director. Ebach v. Ralston, 469 N.W.2d 801, 1991 N.D. LEXIS 81 (N.D. 1991).

—Traffic Signals.

A city can control a traffic signal light or establish a pedestrian crosswalk on a state highway only when the director of the department of transportation has delegated, by agreement with the city, his authority over the urban connecting street. Yassin v. Schroeder, 469 N.W.2d 368, 1991 N.D. LEXIS 84 (N.D. 1991).

Subdivision 15.
—Driving While Intoxicated.

A city did not, under prior law, have the power to regulate the operation of motor vehicles on its streets by persons who were intoxicated, such regulation being a matter of state-wide importance. City of Fargo v. Glaser, 62 N.D. 673, 244 N.W. 905 (1932), decided prior to the amendment to this section by Session Laws 1933, ch. 175, distinguished, Espeland v. Police Magistrate's Court, 78 N.D. 349, 49 N.W.2d 394, 1951 N.D. LEXIS 94 (N.D. 1951).

The legislative action in authorizing cities to enact ordinances prohibiting drunken driving on their streets did not repeal S.L. 1927, ch. 162, § 62 (N.D.C.C. § 39-08-01) but simply created an extra hazard for the drunken driver. State v. Colohan, 69 N.D. 316, 286 N.W. 888, 1939 N.D. LEXIS 154 (N.D. 1939).

Subdivision 21.
—City Auditorium.

The board of city commissioners is vested with discretion as to the leasing of a city auditorium. State ex rel. Herbrandson v. Vesperman, 52 N.D. 641, 204 N.W. 202, 1925 N.D. LEXIS 129 (N.D. 1925).

Subdivision 22.
—Dog Tax.

The board of city commissioners has power to provide for the licensing and registration of all dogs kept in a city as well as the authority to prohibit the running at large of dogs. City of Dickinson v. Thress, 69 N.D. 748, 290 N.W. 653, 1940 N.D. LEXIS 204 (N.D. 1940).

Subdivision 23.
—Substandard Buildings.

For case, upholding orders by city that owner demolish separate rental properties because they were substandard, see Pic v. Grafton, 460 N.W.2d 706, 1990 N.D. LEXIS 191 (N.D. 1990).

—Removal of Substandard Structure.

An ordinance which provides for demolition, repair, or removal of buildings which are fire hazards, dangerous to the occupants’ safety, or in a dilapidated condition is valid exercise of police power. SODERFELT v. CITY OF DRAYTON, 79 N.D. 742, 59 N.W.2d 502, 1953 N.D. LEXIS 75 (N.D. 1953); Fradet v. Southwest Fargo, 79 N.D. 799, 59 N.W.2d 871, 1953 N.D. LEXIS 77 (N.D. 1953).

City has the power to order demolition of private buildings if it enacts an appropriate ordinance pursuant to this section. Bergquist v. Eichelberger, 262 N.W.2d 19, 1978 N.D. LEXIS 202 (N.D. 1978).

City council’s order for the removal of buildings because they were considered substandard was arbitrary, oppressive, and unreasonable where there was no evidence upon which to conclude that the buildings were not repairable and the ordinance regarding substandard buildings did not set forth any standards whatsoever whereby the council was to determine whether a structure was to be repaired, demolished, or removed. Pic v. Grafton, 339 N.W.2d 763, 1983 N.D. LEXIS 399 (N.D. 1983).

Collateral References.

Who “harbors” or “keeps” dog under animal liability statute, 64 A.L.R.4th 963.

Construction and effect of statute requiring that zoning application be treated as approved if not acted on within specified period of time, 66 A.L.R.4th 1012.

Horseback riding or operation of horse-drawn vehicle as within drunk driving statute, 71 A.L.R.4th 1129.

Validity and construction of statute, ordinance, or regulation applying to specific dog breeds, such as “pit bulls” or “bull terriers,” 80 A.L.R.4th 70.

Right of one governmental subdivision to sue another such subdivision for damages, 11 A.L.R.5th 630.

40-05-02.1. Parking privileges for handicapped. [Repealed]

Repealed by S.L. 1967, ch. 293, § 5.

40-05-02.2. City may levy excise tax on nonprofit liquor dealers by ordinance.

  1. Any city, through the enactment of an ordinance to such effect, may levy a local excise tax, not in excess of fifty percent, upon the proceeds from gross sales of liquor, as defined by subsection 6 of section 5-01-01, by any nonprofit corporation licensed by the city to sell such liquor; provided, however, that no city may levy the tax herein provided for unless such nonprofit corporation is the only person, firm, association, corporation, or limited liability company within the corporate limits of such city licensed to sell such liquor.
  2. The city in levying the excise tax provided for in subsection 1 shall provide within the levying enactment a method of computation, collection, and disposition of such tax revenue, and a procedure whereby any person aggrieved by such procedure may appeal to the governing body of the city. The right of appeal from a decision of the governing body of such city to the district court of the district wherein such city is located may not be restricted. An appeal taken under this section must be in accordance with the procedure provided in section 28-34-01.

Source: S.L. 1963, ch. 289, § 1; 1967, ch. 323, § 117; 1989, ch. 83, § 14; 1993, ch. 54, § 106.

40-05-03. Cities having population of fifteen thousand may provide for regulation and inspection of food markets.

The governing body of any city having a population of fifteen thousand or more may enact ordinances providing for the regulation and inspection of food markets, stores, and other places where food intended for human consumption is sold at retail.

Source: S.L. 1941, ch. 201, § 1; R.C. 1943, § 40-0503; S.L. 1967, ch. 107, § 8.

Cross-References.

General regulation of food, see ch. 19-02.1.

40-05-04. Powers of village. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-05-05. Cities may contract for electrical energy or gas.

The governing body of any city may enter into a contract with any person, partnership, association, corporation, limited liability company, or the United States or any department or agency thereof to provide for:

  1. The furnishing of electrical energy or gas to the inhabitants of the city and to the city for all purposes; or
  2. The sale to and the purchase by the city for a term of not to exceed ten years, of electrical energy or gas required for city purposes.

The making and execution of any such contract must be authorized by a resolution of the governing body adopted by a majority of the members thereof at a regularly assembled meeting of such body. Nothing contained in this section shall deprive the public service commission of any of its regulatory powers with reference to contract rates.

Source: S.L. 1929, ch. 173, §§ 2, 3; R.C. 1943, § 40-0505; S.L. 1951, ch. 260, § 1; 1957 Supp., § 40-0505; S.L. 1967, ch. 323, § 118; 1993, ch. 54, § 106.

Cross-References.

Municipal power agencies, see ch. 40-33.2.

Municipal utilities, see ch. 40-33.

Notes to Decisions

Implied Power to Make Feasibility Study.

General power conferred upon city by this section necessarily includes implied power to engage preliminary engineering services and legal services to explore ultimate feasibility of undertaking including, in particular, legal duty of pubic utility to provide transmission service to city as a common carrier or to furnish electrical energy at wholesale cost to municipality; authorizing expenditures in question from general funds of city were proper exercises of that contractual power. Anderson v. Hankinson, 157 N.W.2d 833, 1968 N.D. LEXIS 105 (N.D. 1968).

40-05-06. City fines and penalties limited.

  1. Except as provided in subsections 2 and 3, the fine or penalty for the violation of any ordinance, resolution, or regulation of a city may not exceed one thousand five hundred dollars, and the imprisonment may not exceed thirty days for one offense.
  2. For every violation of a city ordinance that regulates the operation or equipment of a motor vehicle or which regulates traffic, except those ordinances listed in section 39-06.1-05, a fee may be established, by ordinance, which may exceed, by up to one hundred percent, the limit, for an equivalent category of violation, set forth in section 39-06.1-06.
  3. For every violation of a city ordinance enforcing the requirements of title 40, Code of Federal Regulations, section 403 relating to publicly owned treatment works, or prohibiting shoplifting, vandalism, criminal mischief, or malicious mischief, the penalty may not exceed a fine of one thousand five hundred dollars, imprisonment for thirty days, or both such fine and imprisonment.
  4. This section does not prohibit the use of the sentencing alternatives, other than a fine or imprisonment, provided by section 12.1-32-02 for the violation of a city ordinance, nor does this section limit the use of deferred or suspended sentences under subsections 3 and 4 of section 12.1-32-02.

Source: S.L. 1877, ch. 73, art. 4, § 1; 1890, ch. 100, §§ 1, 2; R.C. 1895, § 2148, subs. 77; S.L. 1897, ch. 102, § 1, subs. 76; 1899, ch. 40, § 1, subs. 77; R.C. 1899, § 2148, subs. 77; S.L. 1905, ch. 62, § 47, subs. 78; R.C. 1905, § 2678, subs. 78; S.L. 1907, ch. 45, § 48, subs. 73; 1911, ch. 77, § 48, subs. 73; C.L. 1913, §§ 3599 subs. 78, 3818 subs. 73; R.C. 1943, § 40-0506; S.L. 1969, ch. 369, § 1; 1973, ch. 301, § 33; 1975, ch. 368, § 1; 1981, ch. 409, § 1; 1989, ch. 158, § 15; 1991, ch. 443, § 1; 1997, ch. 132, § 3; 2013, ch. 301, § 22; 2019, ch. 335, § 1, effective August 1, 2019; 2019, ch. 516, § 2, effective August 1, 2019.

Notes to Decisions

Alcohol.

The regulation of the use and sale of alcohol by a municipality is limited to imposing a penalty equal to a class B misdemeanor. City of Fargo v. Little Brown Jug, 468 N.W.2d 392, 1991 N.D. LEXIS 72 (N.D. 1991).

In order to harmonize the statutes granting and limiting the power of a municipality with N.D.C.C. § 12.1-01-05, and to avoid an implicit repeal of that power to regulate the use and sale of alcoholic beverages, the prohibition in N.D.C.C. § 12.1-01-05 against a municipal ordinance superseding state law, does not prevent a municipality from enacting an ordinance with a penalty which differs from the penalty which could be imposed under similar state law when the city has enacted an ordinance authorizing imposition of up to the maximum penalty the city may impose under state law, and the enactment is in an area of law in which the city is authorized to engage in regulation through the enactment of an ordinance. City of Fargo v. Little Brown Jug, 468 N.W.2d 392, 1991 N.D. LEXIS 72 (N.D. 1991).

Defining an Offense and Penalty.

A city may enact an ordinance which defines an offense in language similar to state law but provides for a lesser penalty than the state law. City of Fargo v. Little Brown Jug, 468 N.W.2d 392, 1991 N.D. LEXIS 72 (N.D. 1991).

Driving Under the Influence.

A provision of the Fargo Municipal Code that regulated the same offense as N.D.C.C. § 5-02-06, but provided that a violation constituted a class B misdemeanor carrying a penalty of a fine not to exceed $500, or imprisonment not to exceed 30 days, or both, did not supersede the state statute in violation of N.D.C.C. § 12.1-01-05, although it provided a lesser penalty than that mandated by the state statute. N.D.C.C. § 40-05-01(29) granted municipalities the power to regulate the use and licensure of alcoholic beverages while N.D.C.C. § 40-05-06 limited their ability to impose a penalty greater than a class B misdemeanor; the penalty of a municipal ordinance could differ from the penalty imposed by the state law in those situations in which the municipality authorized imposition of up to the maximum allowable municipal penalty that was lesser than the state law penalty for an equivalent statute. City of Fargo v. Little Brown Jug, 468 N.W.2d 392, 1991 N.D. LEXIS 72 (N.D. 1991).

Violation of municipal ordinance governing driving under the influence was a petty offense, and thus the right to a jury trial guaranteed by the federal constitution was not applicable. City of Bismarck v. Fettig, 1999 ND 193, 601 N.W.2d 247, 1999 N.D. LEXIS 210 (N.D. 1999).

Suspension of Driver's License.

City had no power to suspend driver’s license of person convicted by municipal authorities of driving a car while under the influence of alcohol. City of Fargo v. Glaser, 62 N.D. 673, 244 N.W. 905 (1932), decided prior to the amendment to NDRC 1943, § 40-0502, by Session Laws 1933, ch. 175.

40-05-07. Village fines and penalties limited — Remission. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-05-08. Municipal licenses for sale of agricultural products limited — Exception.

No municipality shall impose any license fee or charge against the producer or grower of any agricultural product grown or produced upon lands located in this state nor in any manner limit or restrict the free sale thereof by such grower or producer. This provision, however, shall not restrict the right of any municipality to utilize any power given to it to regulate, as reasonable health measures, the inspection and sale of products intended for human consumption.

Source: S.L. 1933, ch. 175, § 2; R.C. 1943, § 40-0508.

40-05-09. Purchase of firefighting equipment — How paid — Limitations.

Upon a declaration by resolution duly passed that an emergency exists and that it is desirable and necessary that firefighting apparatus and equipment be acquired for municipal purposes, the governing body of any municipality may enter into a contract or contracts for the purchase of such property. The purchase price of such property may be payable in annual installments, but all moneys paid annually under any such contract shall be available and shall be paid from the authorized tax levy of the municipality. Under this section, contracts may not be entered into which will create aggregate future obligations of the municipality in an amount in excess of one percent of the value of all taxable property within the municipality and such contracts shall not be in excess of ten thousand dollars.

Source: S.L. 1931, ch. 193, § 1; R.C. 1943, § 40-0509.

40-05-09.1. Tax levy for fire department stations. [Repealed]

Source: S.L. 1963, ch. 290, § 1; 1967, ch. 323, § 119; 1967, ch. 325, § 1; 1983, ch. 593, § 20; 1983, ch. 606, § 39; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

40-05-09.2. Contracting for fire protection service.

Any city may contract with a nonprofit corporation for the provision of fire protection and firefighting services if the nonprofit corporation has been in existence and has provided fire protection and firefighting services to the contracting city for a period of not less than twenty years.

The governing body of the city may provide funding from revenues derived from its general fund levy authority for contracted fire protection services and may also expend moneys otherwise available for the provision of such service.

Source: S.L. 1973, ch. 321, § 1; 1983, ch. 593, § 21; 1983, ch. 606, § 40; 2015, ch. 439, § 36, eff for taxable years beginning after December 31, 2014.

40-05-10. Municipalities to have powers of townships.

In addition to the powers conferred by this title, each incorporated municipality shall have and shall exercise, within its limits and in the manner prescribed by law, the same powers as are conferred upon townships by the laws of this state.

Source: S.L. 1883, ch. 112, § 121, subs. 1; R.C. 1895, § 2676; R.C. 1899, § 2676; R.C. 1905, § 3216; C.L. 1913, § 4272; R.C. 1943, § 40-0510.

Cross-References.

Powers of townships, see ch. 58-03.

40-05-11. Foreign city — Power to acquire by right of eminent domain, purchase, lease, own, and hold real estate in this state — Liability.

Any city of another state situated within five miles [8.05 kilometers] of the boundary line of this state may purchase, lease, own, and hold real estate in this state for waterworks or sewerage purposes and may improve the land for municipal purposes in the same manner as a city situated in this state, and may lease, let, or convey the land. Any city so situated may acquire, by purchase, gift, devise, or, subject to chapter 32-15, condemnation, any property, corporeal or incorporeal within this state, as may be necessary or convenient for the construction and maintenance of an electric power transmission line, which electric power transmission line has the function of connecting a municipal power plant, owned and operated by that city, with distribution facilities owned by the government of the United States for distributing electric power generated at Garrison Dam. Such foreign city is liable for all damages growing out of or incident to the ownership, use, or occupation of any such real estate in this state as if it were a municipality of this state.

Source: S.L. 1917, ch. 77, § 1; 1925 Supp., § 3770a1; R.C. 1943, § 40-0511; S.L. 1955, ch. 260, § 1; 1957 Supp., § 40-0511; 2007, ch. 293, § 19.

40-05-12. Foreign city — Power to sue and defend in courts of this state.

Any city of another state authorized by section 40-05-11 to own, lease, occupy, or hold real estate in this state shall have the same right as a city of this state to sue by its corporate authorities and in its corporate name in the courts of this state for the protection of any rights acquired in real estate in this state and to defend actions in its corporate name relating to the ownership, use, or occupation of real estate acquired.

Source: S.L. 1917, ch. 77, § 2; 1925 Supp., § 3770a2; R.C. 1943, § 40-0512.

40-05-13. Foreign city — Power to convey realty — Regulations governing.

Any real estate in this state owned by a city situated in another state may be conveyed by a warranty or quitclaim deed executed by and on behalf of such city in its corporate name by its executive officer and city auditor. The deed, when so executed and when acknowledged by the executive officer and city auditor for and on behalf of the city, before an officer competent to take acknowledgments, shall be entitled to record.

Source: S.L. 1917, ch. 77, § 3; 1925 Supp., § 3770a3; R.C. 1943, § 40-0513; S.L. 1973, ch. 80, § 11.

40-05-14. Agreements for construction and maintenance of streets between municipalities and counties.

The governing body of any municipality of ten thousand population or less and the boards of county commissioners of the several counties may enter into agreements for the construction and maintenance of streets within such municipalities by the boards of county commissioners. Said municipalities shall pay, on a reimbursable basis, such sums as are agreed upon.

Source: S.L. 1953, ch. 253, § 1; R.C. 1943, 1957 Supp., § 40-0514.

40-05-15. Unclaimed motor vehicles — When sale permitted — Bill of sale evidence of title. [Repealed]

Repealed by S.L. 1973, ch. 319, § 15.

40-05-16. Programs and activities for senior citizens — Expenditure of funds.

The governing body of any city is authorized to establish or maintain programs and activities for senior citizens, including the expansion of existing senior citizen centers which will provide recreational and other leisure-time activities, informational, health, welfare, counseling, and referral services for senior citizens, and assist such persons in providing volunteer community or civic services. The governing body is authorized to expend funds received from state, federal, or private sources for the public purposes provided for in this section. No expenditure authorized by this section shall be made to defray any expenses of any organization or agency until such organization or agency is incorporated under the laws of this state as a nonprofit corporation and has contracted with the governing body in regard to the manner in which such funds will be expended and the services to be provided. An organization or agency and its program which receives such funds shall be reviewed or approved annually by the governing body to determine its eligibility to receive funds under the provisions of this section.

Source: S.L. 1975, ch. 96, § 2.

Cross-References.

State matching funds for senior citizens’ programs, see § 57-15-56.

40-05-17. City restriction of adult establishments — Definitions.

  1. As used in this section, unless the context otherwise requires:
    1. “Adult bookstore” means a bookstore having as a preponderance of its publications, books, magazines, and other periodicals which are distinguished or characterized by their emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas as defined in this subsection.
    2. “Adult establishment” means either an adult bookstore, an adult motion picture theater, an adult mini-motion picture theater, or a massage business, all as defined in this subsection.
    3. “Adult mini-motion picture theater” means an enclosed building with a capacity for less than fifty persons used for presenting motion pictures, a preponderance of which are distinguished or characterized by an emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas as defined in this subsection, for observation by patrons of the theater.
    4. “Adult motion picture theater” means an enclosed building with a capacity of fifty or more persons used for presenting motion pictures, a preponderance of which are distinguished or characterized by an emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas as defined in this subsection, for observation by patrons of the theater.
    5. “Massage” means the manipulation of body muscle or tissue by rubbing, stroking, kneading, or tapping, by hand or mechanical device.
    6. “Massage business” means any establishment or business wherein massage is practiced, including establishments commonly known as health clubs, physical culture studios, massage studios, or massage parlors.
    7. “Sexually oriented devices” means without limitation any artificial or simulated specified anatomical area or any other device or paraphernalia that is designed in whole or in part for specified sexual activities.
    8. “Specified anatomical areas” means:
      1. Less than completely and opaquely covered human genitals and pubic regions, buttocks, or female breasts below a point immediately above the top of the areola.
      2. Human male genitals in a discernibly turgid state, even if completely and opaquely covered.
    9. “Specified sexual activities” means:
      1. Human genitals in a state of sexual stimulation or arousal;
      2. Acts of human masturbation, sexual intercourse, or sodomy; or
      3. Fondling or other erotic touchings of human genitals and pubic regions, buttocks, or female breasts.
  2. A determination of preponderance need not be based on whether or not a numerical majority or plurality of the materials are distinguished or characterized by their emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas. When making a determination as to whether an establishment displays, sells, distributes, or exhibits a preponderance of materials which are so distinguished or characterized, the governing body or factfinder shall consider the totality of the circumstances and may consider, among other factors deemed relevant, any of the following:
    1. Dominant theme of the establishment.
    2. Total impression of the emphasis placed on such materials by the establishment.
    3. Externalities of the establishment including, the manner of packaging or display and advertising which demonstrates the dominant theme or emphasis being placed on such materials by the establishment.
    4. Obtrusive characteristics of the materials which tend to distract from and dominate the other classes of materials.
    5. Manner of display of the materials.
    6. Advertising emphasis.
    7. Whether the establishment prohibits minors from entering the premises or any portion thereof.
  3. The governing body of any city may, by ordinance, provide that:
    1. No building, premises, structure, or other facility that contains any adult establishment, as defined in subsection 1, shall contain any other kind of adult establishment.
    2. No building, premises, structure, or other facility in which sexually oriented devices, as defined in subsection 1, are sold, distributed, exhibited, or contained shall contain any adult establishment, as defined in subsection 1.

Source: S.L. 1981, ch. 143, §§ 1, 3; 1983, ch. 456, § 1.

Cross-References.

Obscenity control, see ch. 12.1-27.1.

Notes to Decisions

Permissive, Not Mandatory Statute.

With the exception of “the totality of the circumstances”, which the governing body or factfinder shall consider, this statute is permissive, not mandatory, in nature. The statute provides that “the governing body or factfinder … may consider” any of the eight factors listed. Thus, consideration of the eight listed factors is discretionary. City of Mandan v. Mi-Jon News, 381 N.W.2d 540, 1986 N.D. LEXIS 251 (N.D. 1986).

Retroactivity.

The North Dakota legislature did not expressly declare this section to be retroactive. City of Mandan v. Mi-Jon News, 381 N.W.2d 540, 1986 N.D. LEXIS 251 (N.D. 1986).

Collateral References.

Validity and construction of statute or ordinances forbidding treatment in health clubs or massage salons by persons of the opposite sex, 51 A.L.R.3d 936.

Massage parlor as nuisance, 80 A.L.R.3d 1020.

Validity of statutes or ordinances requiring sex-oriented businesses to obtain operating licenses, 8 A.L.R.4th 130.

Validity of ordinances restricting location of “adult entertainment” or sex-oriented businesses, 10 A.L.R.5th 538.

40-05-18. Garbage removal — Number of contractors allowed.

In any city with a population of not less than five thousand persons, the governing body shall, if permitted by ordinance or by law to allow more than one person or firm to contract with commercial enterprises for the private collection or removal of garbage, allow all persons or firms wishing to do so to enter into private garbage removal contracts with commercial enterprises.

Source: S.L. 1981, ch. 410, § 1.

40-05-19. City funding for animal shelters — Sterilization of animals.

The governing body of the city may provide funding from revenues derived from its general fund levy authority for the construction, operation, or maintenance of animal shelters. Voter-approved levy authority authorized by electors of a city under this section before January 1, 2015, remains in effect through taxable year 2024 or for the time period authorized by the electors, whichever expires first.

The levy authorized by this section may be used to defray expenses of any organization or agency incorporated under the laws of this state as a nonprofit corporation that has contracted with the governing body of the city in regard to the manner in which the funds will be expended and the services will be provided. No unclaimed dog or cat may be released for adoption by an animal shelter that receives funds from the levy under this section without being first sterilized, or without a written agreement and deposit from the adopter guaranteeing that the animal will be sterilized.

Source: S.L. 1985, ch. 616, §§ 2, 3; 2015, ch. 439, § 37, eff for taxable years beginning after December 31, 2014.

Collateral References.

Cat as object of larceny, 55 A.L.R.4th 1080.

40-05-20. Programs and activities for handicapped persons — Expenditure of funds.

The governing body of any city or park district may establish or maintain programs and activities for handicapped persons, including recreational and other leisure-time activities and informational, health, welfare, transportation, counseling, and referral services. The governing body may provide funding from revenues derived from its general fund levy authority and may expend funds received from state, federal, or private sources for the public purposes provided for in this section. No expenditure may be made to defray any expenses of any organization or agency until the organization or agency is incorporated under the laws of this state as a nonprofit corporation and has contracted with the governing body in regard to the manner in which the funds will be expended and the services will be provided. An organization or agency that receives the funds must be reviewed or approved annually by the governing body to determine its eligibility to receive funds under this section.

Source: S.L. 1987, ch. 149, § 2; 2015, ch. 439, § 38, eff for taxable years beginning after December 31, 2014.

40-05-21. Centennial coordinating committee. [Repealed]

Repealed by S.L. 2011, ch. 54, § 15.

40-05-22. Golf carts on city streets.

The governing body of a city may allow by an ordinance the operation of golf carts on the city streets. The ordinance may not allow a golf cart on federal, state, or county highways in the city, except for the perpendicular crossing of these highways. The ordinance may not allow the operation of a golf cart on city streets except for daytime travel between the owner’s place of residence and a golf course. Golf carts that are allowed to operate on the city streets as the result of an ordinance are exempt from the title, registration, and equipment provisions of title 39.

Source: S.L. 2007, ch. 349, § 1.

40-05-23. Limitation on authority — Seed.

Notwithstanding any other law, a city may not impose any requirements or restrictions pertaining to the registration, labeling, distribution, sale, handling, use, application, transportation, or disposal of seed. This section does not apply to city zoning ordinances.

Source: S.L. 2011, ch. 69, § 7.

Effective Date.

This section became effective July 1, 2011.

40-05-24. Duties of cities granting property tax incentives.

  1. Notwithstanding any other provision of law, before granting a property tax incentive on any parcel of property that is anticipated to receive a property tax incentive for more than five years, the governing body of a city shall send the chairman of each county commission and the president of each school district affected by the property tax incentive a letter, by certified mail, which provides notice of the terms of the proposed property tax incentive.
  2. Within thirty days from receipt of the letter, each affected county and school district shall notify the city, in writing, whether the county or school district elects to participate in granting the tax incentive on the county or school district portion of tax levied on the property. The notification from a county or school district electing not to participate must include a letter explaining any reason for which the entity elected not to participate and whether the county or school district is willing to negotiate the terms of the property tax incentive with the city.
  3. If the city does not receive a response from an affected county or school district within thirty days of delivery of the letter, the county and school district must be treated as participating in the property tax incentive.
  4. The term “negotiation” as used in this section means the governing body of an affected county or school district may negotiate the terms of participating in the tax incentive, including the duration of the tax incentive and the taxable value selected for the base year for purposes of computing tax increments.
  5. If an agreement is reached through negotiation under this section, the property tax incentive must be applied in accordance with the agreement.
  6. Property subject to a development agreement entered pursuant to section 40-58-20.1 before August 1, 2017, and all amendments to the development agreement, is not subject to the requirements under this section.

Source: S.L. 2017, ch. 277, § 1, effective August 1, 2017; S.L. 2017, ch. 14, § 22, eff for property tax incentives approved after July 31, 2017.

CHAPTER 40-05.1 Home Rule in Cities

40-05.1-00.1. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “City officers” means the elected and appointed officers of the city and includes the governing body of the city and its members.
  2. “Executive officer” means the chief officer in whom resides the power to execute the laws of the city.
  3. “Governing body” means the body which performs the legislative functions of the city.

Source: S.L. 1985, ch. 455, § 1.

40-05.1-01. Enabling clause.

Any city may frame, adopt, amend, or repeal home rule charters as provided in this chapter.

Source: S.L. 1969, ch. 371, § 1; 1993, ch. 401, § 32.

Notes to Decisions

Definitions.

The definitions in N.D.C.C. § 40-01-01 apply to this chapter. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

City Powers.

While a home rule city can have broad powers over its property and to control its finances and fiscal affairs, if those powers are included in the charter and implemented through ordinances, the powers of a city which has not done so are those bestowed by the legislature on all municipalities. Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

Law Reviews.

The Legislative/Administrative Dichotomy and the Use of the Initiative and Referendum in a North Dakota Home Rule City, 51 N.D. L. Rev. 855 (1975).

40-05.1-02. Methods of proposing home rule charter.

The governing body of any city may on its own motion cause a home rule charter to be framed and submitted for adoption to the qualified electors of the city in the manner provided in this chapter, or such proposal may be made in a petition filed with the governing body and signed by not less than fifteen percent of the qualified electors of the city voting in the last city election.

Source: S.L. 1969, ch. 371, § 2; 1985, ch. 235, § 70.

40-05.1-03. Charter commission — Membership — Preparation and submission of charter — Compensation and expenses — Publication or distribution.

Within sixty days after proceedings have been initiated for a home rule charter, the governing body of the city shall appoint a charter commission, composed of at least five members, to frame the charter, unless a petition proposing a charter pursuant to section 40-05.1-02 prescribes the composition of the commission or the manner by which the composition of the commission is to be determined. The chairman of the charter commission shall be designated by the governing body and shall be a charter commission member. Compensation and expenses of commission members shall be as determined by the governing body. The governing body may furnish the charter commission with office space, clerical help, legal and other assistance, and supplies, and may appropriate and pay for same out of its general funds. The charter commission shall hold at least one public hearing on the proposed charter, and may use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion of the proposed charter. The commission shall prepare and submit the charter within one year after appointment, unless the governing body allows additional time for submission of the charter. The proposed charter shall then be published once in the city’s official newspaper as provided in section 40-01-09. However, cities with a population of one thousand or less may, in lieu of publishing the charter in a newspaper, distribute copies of the charter door-to-door and have them posted and available at prominent locations in the city. In the event a city does not publish the charter in a newspaper, it must still publish a notice of the election.

Source: S.L. 1969, ch. 371, § 3; 1973, ch. 322, § 1; 1977, ch. 375, § 4; 1993, ch. 401, § 33.

40-05.1-04. Submission of charter to electors.

At least sixty days, but no more than two years, after submission of the charter to the governing body of the city, the proposed charter must be submitted to a vote of the qualified electors of the city at a regular or special city election, or at any statewide election that is held within that time, or at a special city election held concurrently with any statewide election. If the proposed charter has been submitted to a vote of the qualified electors of the city, the governing body of the city may call a special election to resubmit the proposed charter to a vote of the qualified electors of the city, and the special election must take place at least sixty days after the call for the special election. The governing body may amend the proposed charter prior to its resubmission to the electors.

Source: S.L. 1969, ch. 371, § 4; 1973, ch. 322, § 2; 1991, ch. 442, § 4; 1993, ch. 401, §§ 34, 35.

40-05.1-05. Ratification by majority vote — Supersession of existing charter and state laws in conflict therewith — Filing of copies of new charter.

If a majority of the qualified voters voting on the charter at the election vote in favor of the home rule charter, the charter is ratified and is the organic law of the city, and extends to all its local and city matters. The charter and the ordinances made pursuant to the charter in such matters supersede within the territorial limits and other jurisdiction of the city any law of the state in conflict with the charter and ordinances and must be liberally construed for such purposes. One copy of the charter ratified and approved must be filed with the secretary of state and one with the auditor of the city to remain as a part of its permanent records. Thereupon the courts shall take judicial notice of the new charter.

Source: S.L. 1969, ch. 371, § 5; 1999, ch. 278, § 66; 1999, ch. 363, § 1; 2001, ch. 120, § 1; 2001, ch. 358, § 1.

Notes to Decisions

Criminal or Noncriminal Offenses.

N.D.C.C. § 12.1-01-05 precluded the City of Fargo, North Dakota, a home rule city, from imposing fees for noncriminal traffic offenses that exceeded the limits set forth for equivalent violations in N.D.C.C. § 39-06.1-06, because N.D.C.C. § 12.1-01-05 clearly and unambiguously precludes a home rule city from superseding criminal or noncriminal offenses defined by State law, when a penalty that exceeds the limits delineated by equivalent State law supersedes State law; the word “offense” rather than the word “crimes” is used in the text of N.D.C.C. § 12.1-01-05, and an “offense” under N.D.C.C. § 12.1-01-05 includes noncriminal, as well as criminal offenses. Sauby v. City of Fargo, 2008 ND 60, 747 N.W.2d 65, 2008 N.D. LEXIS 60 (N.D. 2008).

Powers of Municipalities.

Imposition of a fine for violation of municipal ordinances was reversed and remanded for entry of an order vacating the decision because the Fargo Administrative Enforcement Board had no statutory authority to adjudicate the owner’s alleged violations of the municipal ordinances and its decision was void, when there was no authority for the creation of an administrative system for adjudication of alleged violations of ordinances or regulations enacted by the municipality as an alternative to municipal court and the responsibilities granted to the Board conflicted with N.D.C.C. § 40-18-01(1). City of Fargo v. Malme, 2007 ND 137, 737 N.W.2d 390, 2007 N.D. LEXIS 141 (N.D. 2007).

Because Minot Code of Ordinances § 2-71 and N.D.C.C. § 40-20-02 did not conflict and the language for supersession in N.D.C.C. § 40-05.1-05 did not apply, the city retained the power applicable to all municipalities under N.D.C.C. § 40-20-02 to appoint assistant city attorneys and the city had the statutory authority and power to contract with a county under N.D.C.C. §§ 54-40.3-01 and 40-18-15.1 for municipal prosecution services. City of Minot v. Rudolph, 2008 ND 231, 758 N.W.2d 731, 2008 N.D. LEXIS 201 (N.D. 2008).

Superseding Legislation.

Home rule city’s ordinance authorizing creation of pedestrian mall superseded contradictions in state legislation. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Supersession Provision.

The supersession provision in this section has limited and qualified application and does not provide that any and every ordinance a city may pass supersedes any state law in conflict therewith; supersession provision applies only to those powers set out in N.D.C.C. § 40-05.1-06, provided they are also included in the charter and implemented by ordinance. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

To permit a conclusion that an ordinance supersedes a state law, providing the charter and implementing ordinance requirements have been met, it is not only essential that the power given to the city by the legislature is clearly expressed or necessarily implied from the grant but also that it conflicts with the laws generally applicable to cities. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

40-05.1-05.1. Multicity home rule.

  1. Two or more cities may draft and submit for adoption a multicity home rule charter to the electors of each city pursuant to this section. The other provisions of this chapter apply to a multicity home rule charter, except as otherwise provided by this section.
  2. The process for drafting and submitting a multicity home rule charter may be initiated by:
    1. Separate motions by the governing bodies of the participating cities;
    2. The execution of a joint powers agreement between participating cities; or
    3. A petition filed with each governing body of two or more cities and signed by ten percent or more of the total number of qualified electors of each city voting for governor at the most recent gubernatorial election.
  3. Within sixty days after proceedings are initiated for a multicity home rule charter, the boards of governing bodies shall enter into a joint powers agreement specifying the procedure for framing the charter, which may include the establishment of a single cooperative charter commission with membership representing each city. As an alternative, the governing bodies in each affected city may establish a separate charter commission pursuant to section 40-05.1-03 to frame the charter in cooperative study with the charter commission of any other affected city. The charter commissions must submit a single joint report and proposed charter.
  4. The charter commission, during its deliberation, may hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion on the subject of the proposed multicity home rule charter, and may report periodically to the affected governing bodies on their progress. In preparing the charter, the charter commission may:
    1. Include any of the available powers enumerated in section 40-05.1-06;
    2. Provide for adjustment of existing bonded indebtedness and other obligations in a manner which will provide for a fair and equitable burden of taxation for debt service;
    3. Provide for the transfer or other disposition of property and other rights, claims, assets, and franchises of the cities;
    4. Provide for the reorganization, abolition, or adjustment of boundaries of any existing boards, commissions, agencies, and special districts of the city governments, including city park districts;
    5. Include provisions for transition in implementing the charter, including elements that consider the reasonable expectations of current officeholders or personnel such as delayed effective dates for implementation at the end of a current term or a future term, upon the occurrence of a vacancy, or on a date certain;
    6. Include provision for the limited application or temporary implementation of the charter, including provisions that permit implementation on an experimental or pilot basis such as the expiration of the charter on a date certain in the future, required reapproval of the charter by the electors at a future date, or a phased-in implementation of various aspects of the charter; and
    7. Include other provisions that the charter commission elects to include and which are consistent with state law.
  5. The proposed charter or accurate summary of the charter must be published in the official newspaper of each affected city, at the expense of each city, at least once during two different weeks within the thirty-day period immediately preceding the date of election. However, a city with a population of one thousand or less may, instead of publishing the charter in a newspaper, distribute copies of the charter door-to-door and have them posted and available at prominent locations in the city.
  6. If a majority of the qualified electors voting in each city on the charter vote in favor of the multicity home rule charter, it is ratified and becomes the organic law of the cities on the first day of January following the election or other effective date specified in the charter.
  7. The amendment or repeal of a multicity home rule charter may proceed pursuant to the amendment and repeal provisions of section 40-05.1-07 on a multicity basis. A majority vote of the qualified electors voting in each city in the election is required to adopt any amendment of a multicity charter. A majority vote of the qualified electors of only one or more participating cities is required to repeal a multicity charter.

Source: S.L. 1993, ch. 401, § 31.

40-05.1-06. Powers.

From and after the filing with the secretary of state of a charter framed and approved in reasonable conformity with the provisions of this chapter, such city, and the citizens thereof, shall, if included in the charter and implemented through ordinances, have the following powers set out in this chapter:

  1. To acquire, hold, operate, and dispose of property within or without the corporate limits, and, subject to chapter 32-15, exercise the right of eminent domain for such purposes.
  2. To control its finances and fiscal affairs; to appropriate money for its purposes, and make payment of its debts and expenses; to contract debts, borrow money, issue bonds, warrants, and other evidences of indebtedness; to establish charges for any city or other services; and to establish debt limitations.
  3. To levy and collect property taxes and special assessments for benefits conferred, for its public and proprietary functions, activities, operations, undertakings, and improvements, and establish mill levy limitations. Notwithstanding any authority granted under this chapter, all property must be assessed in a uniform manner as prescribed by the state board of equalization and the state supervisor of assessments and all taxable property must be taxed by the city at the same rate unless otherwise provided by law.
  4. To levy and collect an infrastructure fee. The fee must replace a general special assessment on all property for payment of infrastructure maintenance costs through a utility bill issued by a municipality. The money collected under this subsection may not be used for any purpose other than infrastructure maintenance costs. If a home rule city levies an infrastructure fee, the home rule city also may levy and collect green field special assessments. As used in this subsection:
    1. “General special assessments” means special assessments levied for the purpose of maintaining existing roads and infrastructure and special assessments levied for the construction or repair of arterial roads and infrastructure that provide a benefit to the entire community.
    2. “Green field special assessments” means special assessments levied for infrastructure costs associated with the development of agricultural or undeveloped property.
  5. To levy and collect excises, fees, charges, franchise and license taxes, sales and use taxes, farm machinery gross receipts taxes, alcoholic beverage gross receipts taxes, a city lodging tax, and a city restaurant tax. For purposes of this section, any taxes imposed under this section on farm machinery, farm irrigation equipment, and farm machinery repair parts used exclusively for agricultural purposes, or on alcoholic beverages, which were in effect on December 31, 2005, become gross receipts taxes after December 31, 2005. After December 31, 2005, any portion of a charter or any portion of an ordinance passed pursuant to a charter which does not conform to the requirements of this section is invalid to the extent it does not conform. The invalidity of a portion of a charter or ordinance because it does not conform with this subsection does not affect the validity of any other portion of the charter or ordinance of the eligibility for a refund under section 57-01-02.1. Ordinances enacted after August 1, 2017, may not allow for the collection and levy of any tax not otherwise specified under this section. Sales and use taxes and gross receipts taxes levied under this section:
    1. Must conform in all respects with regard to the taxable or exempt status of items under chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2 and may not be imposed at multiple rates with the exception of sales of manufactured homes or mobile homes.
    2. May not be newly imposed or changed except to be effective on the first day of a calendar quarterly period after a minimum of ninety days’ notice to the tax commissioner or, for purchases from printed catalogs, on the first day of a calendar quarter after a minimum of one hundred twenty days’ notice to the seller.
    3. May not be limited to apply to less than the full value of the transaction or item as determined for state sales and use tax purposes, except for farm machinery gross receipts tax.
    4. Must be subject to collection by the tax commissioner under an agreement under section 57-01-02.1, with the exception of a city lodging or city restaurant tax, and must be administered by the tax commissioner in accordance with the relevant provisions of chapter 57-39.2, including reporting and paying requirements, correction of errors, payment of refunds, and application of penalty and interest.
  6. To fix the fees, number, terms, conditions, duration, and manner of issuing and revoking licenses in the exercise of its governmental police powers.
  7. To provide for city officers, agencies, and employees, their selection, terms, powers, duties, qualifications, and compensation. To provide for change, selection, or creation of its form and structure of government, including its governing body, executive officer, and city officers.
  8. To provide for city courts, their jurisdiction and powers over ordinance violations, duties, administration, and the selection, qualifications, and compensation of their officers; however, the right of appeal from judgment of such courts shall not be in any way affected.
  9. To provide for all matters pertaining to city elections, except as to qualifications of electors.
  10. To provide for the adoption, amendment, and repeal of ordinances, resolutions, and regulations to carry out its governmental and proprietary powers and to provide for public health, safety, morals, and welfare, and penalties for a violation thereof.
  11. To lay out or vacate streets, alleys, and public grounds, and to provide for the use, operation, and regulation thereof.
  12. To define offenses against private persons and property and the public health, safety, morals, and welfare, and provide penalties for violations thereof.
  13. To engage in any utility, business, or enterprise permitted by the constitution or not prohibited by statute or to grant and regulate franchises therefor to a private person, firm, corporation, or limited liability company.
  14. To provide for zoning, planning, and subdivision of public or private property within the city limits. To provide for such zoning, planning, and subdivision of public or private property outside the city limits as may be permitted by state law.
  15. To exercise in the conduct of its affairs all powers usually exercised by a corporation.
  16. To fix the boundary limits of said city and the annexation and deannexation of territory adjacent to said city except that such power shall be subject to, and shall conform with the state law made and provided.
  17. To contract with and receive grants from any other governmental entity or agency, with respect to any local, state, or federal program, project, or works.

It is the intention of this chapter to grant and confirm to the people of all cities coming within its provisions the full right of self-government in both local and city matters within the powers enumerated herein. The statutes of the state of North Dakota, so far as applicable, shall continue to apply to home rule cities, except insofar as superseded by the charters of such cities or by ordinance passed pursuant to such charters.

Source: S.L. 1969, ch. 371, § 6; 1983, ch. 428, § 2; 1985, ch. 455, § 2; 1993, ch. 54, § 106; 1999, ch. 364, § 1; 2003, ch. 539, § 2; 2005, ch. 580, § 2; 2005, ch. 582, § 2; 2007, ch. 528, § 2; 2007, ch. 293, § 20; 2009, ch. 111, § 2; 2011, ch. 473, § 2; 2017, ch. 86, § 2, effective August 1, 2017; 2021, ch. 303, § 3, effective July 1, 2021.

Cross-References.

Crimes defined by state law not to be superseded by home rule city’s charter or ordinance, see § 12.1-01-05.

Notes to Decisions

Adjudication of Ordinance Violations.

Imposition of a fine for violation of municipal ordinances was reversed and remanded for entry of an order vacating the decision because the Fargo Administrative Enforcement Board had no statutory authority to adjudicate the owner’s alleged violations of the municipal ordinances and its decision was void, when there was no authority for the creation of an administrative system for adjudication of alleged violations of ordinances or regulations enacted by the municipality as an alternative to municipal court and the responsibilities granted to the Board conflicted with N.D.C.C. § 40-18-01(1). City of Fargo v. Malme, 2007 ND 137, 737 N.W.2d 390, 2007 N.D. LEXIS 141 (N.D. 2007).

Changing Form of Government.

The legislature did not intend, and the statutory provisions do not give, home rule cities the authority to select any form of government they may desire; in the matter of changing the form of government, the legislature intended home rule cities to be governed by those laws applying to cities generally. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

Implementing Powers.

District court did not err in granting the city summary judgment on the rental house owner's claim that it did not have authority to charge a re-inspection fee where the International Property Maintenance Code (IPMC) provided for fees to carry out inspection responsibilities, the city had adopted the IPMC by reference, N.D.C.C. § 40-05.1-06(2) and Fargo, N.D., Municipal Code § 31.0102 authorized such fees, and the owner had not shown that the city's use of an inspector and need to be reimbursed the costs related to re-inspections was unreasonable. City of Fargo v. Rakowski, 2016 ND 79, 877 N.W.2d 814, 2016 N.D. LEXIS 78 (N.D. 2016).

“City Officers”.

Term “city officers” in subdivision 4 is not the executive or governing body but is intended to refer only to individual officers, either elected or appointed. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

Contracts.

Where city was acting within its powers to enter into a labor agreement with firefighters but did not comply with the statutory procedural requirements necessary to form a contract, city’s liability to firefighters was limited to the reasonable value of services rendered. Firefighters Local 642 v. Fargo, 321 N.W.2d 473, 1982 N.D. LEXIS 289 (N.D. 1982).

Criminal and Noncriminal Offenses.

N.D.C.C. § 12.1-01-05 precluded the City of Fargo, North Dakota, a home rule city, from imposing fees for noncriminal traffic offenses that exceeded the limits set forth for equivalent violations in N.D.C.C. § 39-06.1-06, because N.D.C.C. § 12.1-01-05 clearly and unambiguously precludes a home rule city from superseding criminal or noncriminal offenses defined by State law, when a penalty that exceeds the limits delineated by equivalent State law supersedes State law; the word “offense” rather than the word “crimes” is used in the text of N.D.C.C. § 12.1-01-05, and an “offense” under N.D.C.C. § 12.1-01-05 includes noncriminal, as well as criminal offenses. Sauby v. City of Fargo, 2008 ND 60, 747 N.W.2d 65, 2008 N.D. LEXIS 60 (N.D. 2008).

Employee Pensions.

City’s power to provide compensation for its employees was not governed by N.D.C.C. § 40-05-01(69) because the city was a home rule city and had availed itself of the power to regulate employee compensation and supersede state law under N.D.C.C. § 40-05.1-06 by implementing its home rule charter compensation provision by ordinance; section 40-05-01(69) provided that a municipality had the power to consolidate existing pension plans, which the city did when it repealed the prior ordinances providing separate pension plans and enacted a new ordinance for a combined employee pension plan. Klug v. City of Minot, 2011 ND 67, 795 N.W.2d 906, 2011 N.D. LEXIS 68 (N.D. 2011).

N.D.C.C. § 40-05.1-06 authorized home rule cities to provide compensation for their employees, pension plans were compensation, and the city’s home rule charter and implementing ordinance met the requirements; the city had the authority to combine the police and city employee pension plans under its home rule charter, and the city’s ordinances relating to the pension plan superseded conflicting state law. Klug v. City of Minot, 2011 ND 67, 795 N.W.2d 906, 2011 N.D. LEXIS 68 (N.D. 2011).

Implementing Powers.

If the powers enumerated in this section are not stated in the charter, or if they are stated in the charter but are not implemented by ordinance, the home rule city may not avail itself of such powers, but will be governed by the statutes applicable generally to all cities. Litten v. Fargo, 294 N.W.2d 628, 1980 N.D. LEXIS 249 (N.D. 1980).

Ordinance Coupling Zoning and Eminent Domain Powers.

Municipality has authority to enact land-use regulation ordinance coupling zoning power with eminent domain power to provide that, should the retroactive application of the zoning ordinance result in the type of taking of vested property rights in a manner requiring that the divested owner be compensated, then the city council may commence eminent domain proceedings or authorize a confession of judgment to compensate the divested owner in order to permit the retroactive application of the ordinance. City of Minot v. Central Ave. News, 308 N.W.2d 851, 1981 N.D. LEXIS 340 (N.D. 1981).

Property Located Outside City Limits.
—Conflict with Township.

City-acquired property located outside the city limits is not automatically exempt from township zoning ordinances; there must be a balancing of the public interests to determine if such exemption should be allowed, with the city having the burden of proof that the balance of interests is on its side. Fargo v. Harwood Township, 256 N.W.2d 694, 1977 N.D. LEXIS 148 (N.D. 1977).

Law Reviews.

Municipal Corporations — Legislative Control of Municipal Acts, Rights and Liabilities — Home Rule Cities Lack Authority to Create Random Forms of Government, 57 N.D. L. Rev. 655 (1981).

40-05.1-06.1. Sales tax revenue transfer to school districts prohibited.

Notwithstanding the provisions of chapters 54-40 and 54-40.3 or any other provision of law, revenue from sales, use, or other excise taxes levied under this chapter may not be transferred to or for the primary benefit of a school district except for payment of bonded indebtedness incurred before April 19, 2007, or for capital construction and associated costs approved by the electors of the city before April 19, 2007.

Source: S.L. 2007, ch. 103, § 2.

40-05.1-07. Amendment or repeal.

The home rule charter adopted by any city may be amended or repealed by proposals submitted to and ratified by the qualified electors of the city in the same general manner provided in section 40-05.1-02 and section 40-05.1-04 for the adoption of the charter. Amendments may be proposed by the governing body of the city or by petition of the number of electors provided in section 40-05.1-02 and submitted to the voters at the same election. The voters may at their option accept or reject any or all of the amendments by a majority vote of qualified electors voting on the question at the election. A proposal to repeal a home rule charter that has been adopted must likewise be submitted to the electors of the city as set forth in this section. One copy of a ratified amendment or a repeal of a home rule charter must be filed with the secretary of state and one with the city auditor. Upon proper filing of the amendment or repeal, the courts shall take judicial notice of the amendment or repeal.

Source: S.L. 1969, ch. 371, § 7; 1997, ch. 108, § 22; 1999, ch. 363, § 2.

40-05.1-08. Commission — Terms of office — Vacancies.

The terms of office of the members of the charter commission shall be four years. Any vacancy on said commission shall be filled by the governing body of the city.

Source: S.L. 1969, ch. 371, § 8.

40-05.1-09. Restriction on proposals to amend or repeal. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

40-05.1-10. Manner of calling and holding elections.

The elections provided for in this chapter shall be called and held in the same manner as is provided for the calling and holding of city elections except that all qualified voters of the city shall be eligible to vote at such elections. The form of ballot shall be prescribed by the charter commission so that the voter may signify whether the voter is for or against the proposed home rule charter or the amendment or repeal, as the case may be.

Source: S.L. 1969, ch. 371, § 10.

40-05.1-11. Effect of amendment or repeal on salary or term of office.

Repeal of a home rule charter shall cause the city affected by such repeal to revert to the form of government of such city immediately preceding adoption of the home rule charter and when positions to which officials were elected under the home rule charter are substantially the same as positions under the form of government to which the city reverts upon repeal, such elected officials shall continue to exercise the authority of such position for the salary prescribed by the home rule charter until expiration of their terms of office as prescribed by the home rule charter. No amendment of a home rule charter shall shorten the term for which any official was elected or reduce the salary of the official’s office for that term.

Source: S.L. 1969, ch. 371, § 11.

40-05.1-12. Former powers preserved.

All powers heretofore granted any city by general law are hereby preserved to each home rule city, respectively, and the powers so conferred upon said cities by general law, are hereby granted to home rule cities.

Source: S.L. 1969, ch. 371, § 12.

40-05.1-13. Vested property — Claims for relief — Actions saved.

The adoption of any charter hereunder or any amendment thereof shall never be construed to destroy any property, action, claims for relief, claims, and demands of any nature or kind whatever vested in the city under and by virtue of any charter theretofore existing or otherwise accruing to the city, but all such claims for relief, claims, or demands vest in and inure to the city and to any persons asserting any such claims against the city as fully and completely as though the said charter or amendment had not been adopted hereunder. The adoption of any charter or amendment hereunder shall never be construed to affect the right of the city to collect by special assessment any special assessment theretofore levied under any law or charter for the purpose of public improvements, nor affect any right of any contract or obligation existing between the city and any person, firm, corporation, or limited liability company for the making of any such improvements and for the purpose of collecting any such special assessments and carrying out of any such contract.

Source: S.L. 1969, ch. 371, § 13; 1985, ch. 82, § 103; 1993, ch. 54, § 106.

CHAPTER 40-06 Governing Body in Municipalities, General Provisions

40-06-01. Jurisdiction of governing body.

Except as otherwise provided by law, a governing body of a municipality has jurisdiction:

  1. Over any commons or public grounds belonging to such municipality and with the consent of the majority of the owners thereof shall have power to regulate the banks, shores, and wharves of that portion of any navigable stream within the corporate limits; and
  2. In and over all places within one-half mile [804.67 meters] of the municipal limits for the purpose of enforcing health ordinances and regulations, and police regulations and ordinances adopted to promote the peace, order, safety, and general welfare of the municipality.

Source: Pol. C. 1877, ch. 24, § 23; S.L. 1887, ch. 73, art. 3, § 15; R.C. 1895, §§ 2146, 2366; R.C. 1899, §§ 2146, 2366; S.L. 1905, ch. 62, § 43; R.C. 1905, §§ 2674, 2865; C.L. 1913, §§ 3595, 3864; R.C. 1943, § 40-0601; S.L. 1989, ch. 302, § 6; 2003, ch. 210, § 17.

Cross-References.

Police officer authority outside city limits, see § 40-20-05.

Collateral References.

Compromise of claim, power of city officials as to, 15 A.L.R.2d 1359.

Law Reviews.

Powers and Procedures of City and Village Governing Boards, 31 N.D. L. Rev. 137 (1955).

40-06-02. Meetings to be public — Journal of proceedings to be kept.

All meetings of the governing body shall be open to the public, and a journal of its proceedings shall be kept.

Source: S.L. 1887, ch. 73, art. 3, § 11; R.C. 1895, § 2142; R.C. 1899, § 2142; S.L. 1905, ch. 62, § 39; R.C. 1905, § 2670; S.L. 1907, ch. 45, §§ 25, 46; 1911, ch. 77, §§ 25, 46; C.L. 1913, §§ 3591, 3795, 3816; S.L. 1927, ch. 192, § 1; R.C. 1943, § 40-0602.

Cross-References.

Open governmental meeting requirements, see §§ 44-04-19 to 44-04-21.

Notes to Decisions

Adjournment to Indefinite Date.

The purpose of having open meetings is to enable the public to attend those meetings and to keep in touch with the proceedings of the council or other governing body; therefore, the council may not adjourn to an indefinite date in the future. Green v. Beste, 76 N.W.2d 165, 1956 N.D. LEXIS 112 (N.D. 1956).

Law Reviews.

Government in the Sunshine: The Status of Open Meetings and Open Records Laws in North Dakota, Daniel S. Guy and Jack McDonald, 72 N.D. L. Rev. 745 (1996).

40-06-03. Quorum.

A majority of the members of the governing body of a municipality shall constitute a quorum to do business but a smaller number may adjourn from time to time. The governing body may compel the attendance of absentees under such penalties as may be prescribed by ordinance, and may employ the police of the municipality for that purpose.

Source: S.L. 1887, ch. 73, art. 3, § 8; R.C. 1895, § 2139; R.C. 1899, § 2139; S.L. 1905, ch. 62, § 36; R.C. 1905, § 2667; S.L. 1907, ch. 45, § 46; 1911, ch. 77, § 46; C.L. 1913, §§ 3588, 3816; R.C. 1943, § 40-0603.

Collateral References.

What constitutes requisite majority of members of municipal council voting on issue, 43 A.L.R.2d 698.

Abstention from voting of member of municipal council present at session as affecting requisite voting majority, 63 A.L.R.3d 1072.

40-06-04. Reconsidering or rescinding vote at special meeting.

No vote of the governing body of a municipality shall be reconsidered or rescinded at a special meeting unless there is present at such special meeting as large a number of members as were present when such vote was taken.

Source: S.L. 1887, ch. 73, art. 3, § 13; R.C. 1895, § 2144; R.C. 1899, § 2144; S.L. 1905, ch. 62, § 41; R.C. 1905, § 2672; C.L. 1913, § 3593; R.C. 1943, § 40-0604.

40-06-05. Rules of procedure — Expelling members.

The governing body of a municipality shall determine its rules of procedure, punish its members or persons present for disorderly conduct by fine, and with the concurrence of two-thirds of its members may expel a member from a session but may not expel the member a second time for the same offense. The governing body may fine or expel any member for neglect of duty or for unnecessary absence from its sessions.

Source: S.L. 1887, ch. 73, art. 3, § 7; R.C. 1895, § 2138; R.C. 1899, § 2138; S.L. 1905, ch. 62, § 35; R.C. 1905, § 2666; S.L. 1907, ch. 45, § 46; 1911, ch. 77, § 46; C.L. 1913, §§ 3587, 3816; R.C. 1943, § 40-0605.

40-06-06. Conviction of bribery — Office deemed vacant.

Any member of a city governing body convicted of bribery shall be deemed to have vacated that member’s office.

Source: S.L. 1887, ch. 73, art. 3, § 7; R.C. 1895, § 2138; R.C. 1899, § 2138; S.L. 1905, ch. 62, § 35; R.C. 1905, § 2666; C.L. 1913, § 3587; R.C. 1943, § 40-0606.

Cross-References.

Bribery, see ch. 12.1-12.

40-06-07. Exercise of power through ordinance when method of procedure not set out.

The governing body of a municipality may provide by ordinance the details necessary for the full exercise of any power conferred upon it by any law of this state when the manner of exercising such power is not specified otherwise.

Source: S.L. 1905, ch. 62, § 48; R.C. 1905, § 2679; S.L. 1907, ch. 45, § 49; 1911, ch. 77, § 49; C.L. 1913, §§ 3600, 3819; R.C. 1943, § 40-0607.

Notes to Decisions

Municipal Discretion.

Once the existence and extent of a municipal corporation’s powers have been determined and measured, the rule of strict construction no longer applies and the means of exercising those powers, where not prescribed by the legislature, are left to the discretion of the municipal authorities. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-06-08. Action on committee reports deferred upon request.

Upon the request of any two members present, any report of a committee of the governing body shall be deferred for final action to the next regular meeting after the report is made.

Source: S.L. 1887, ch. 73, art. 3, § 14; R.C. 1895, § 2145; R.C. 1899, § 2145; S.L. 1905, ch. 62, § 42; R.C. 1905, § 2673; C.L. 1913, § 3594; R.C. 1943, § 40-0608.

40-06-09. Change in number of members of city governing body — Election.

  1. The process for increasing or decreasing the number of members of a city governing body pursuant to sections 40-04.1-01, 40-08-03, and 40-09-01 may be initiated:
    1. By resolution approved by a majority vote of the governing body of the city; or
    2. By a petition signed by ten percent or more of the total number of qualified electors of the city voting for governor at the most recent gubernatorial election and submitted to the governing body of the city.
  2. The governing body of the city shall submit the question of increasing or decreasing the number of members of the city governing body to the electors of the city at any regular city election or primary or general election as specified in the resolution or petition submitted pursuant to subsection 1. The question requires an affirmative vote of those voting on the question for passage.
  3. If an increase in the number of members of the city governing body is approved by the electors, the additional members must be elected at the next regular city election or as specified in the resolution or petition pursuant to subsection 1. The additional members shall hold office for terms of four years and until a successor is elected and qualified, unless different terms are specified in the resolution or petition pursuant to subsection 1. The terms of office must be arranged on a staggered basis as otherwise provided by law.
  4. If a decrease in the number of members of the city governing body is approved by the electors, the offices identified for abolition shall continue until the time when the terms of those offices expire. A different procedure for abolition of the offices may be specified in the resolution or petition pursuant to subsection 1.
  5. All statutory provisions relating specifically to a ten-member council or eleven-member council, whether repealed or amended by chapter 401 of the 1993 Session Laws House Bill No. 1347, including sections 40-08-03.1, 40-08-03.2, 40-08-04, 40-08-04.1, 40-08-06.1, and 40-12-01, continue to apply to those councils existing on August 1, 1993, until such time as an increase or decrease occurs in the number of members of those councils pursuant to this section.

Source: S.L. 1993, ch. 401, § 36.

CHAPTER 40-07 Villages, Governing Body and Other Officers [Repealed]

[Repealed by S.L. 1967, ch. 323, § 285]

CHAPTER 40-08 Governing Body and Executive Officer in Council Cities

40-08-01. City council — Who constitutes.

The governing body of a city operating under the council form of government is the city council, which is composed of the mayor and council members.

Source: S.L. 1887, ch. 73, art. 3, § 1; R.C. 1895, § 2132; R.C. 1899, § 2132; S.L. 1905, ch. 62, § 29; R.C. 1905, § 2660; C.L. 1913, § 3581; R.C. 1943, § 40-0801; S.L. 1991, ch. 440, § 3.

Notes to Decisions

Mayor Not Member of Council, Exception.

The chief duties of a mayor are as executive officer of the city, though he is a member of the city council only in a limited sense, with the right to preside and to cast the deciding vote in case of a tie. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

40-08-02. Governing body is judge of election and qualifications of members.

The city council shall be judge of the election and qualifications of its own members.

Source: S.L. 1887, ch. 73, art. 3, § 6; R.C. 1895, § 2137; R.C. 1899, § 2137; S.L. 1905, ch. 62, § 34; R.C. 1905, § 2665; C.L. 1913, § 3586; R.C. 1943, § 40-0802.

Notes to Decisions

Contest for Mayor’s Office.

The city council is without jurisdiction to try and determine a contest for the office of mayor. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

Jurisdiction of Court.

This statute does not divest the court of jurisdiction to determine the right to the office of councilman on an information in the nature of quo warranto. State ex rel. Sathre v. Quickstad, 66 N.D. 689, 268 N.W. 683, 1936 N.D. LEXIS 215 (N.D. 1936).

40-08-03. Number of council members.

The number of council members is not less than three. The number of council members may be increased or decreased pursuant to section 40-06-09.

Source: S.L. 1887, ch. 73, art. 3, § 2; R.C. 1895, § 2133; S.L. 1897, ch. 40, § 1; R.C. 1899, § 2133; S.L. 1905, ch. 62, § 30; R.C. 1905, § 2661; C.L. 1913, § 3582; S.L. 1929, ch. 168, § 1; 1933, ch. 166, § 1; R.C. 1943, § 40-0803; S.L. 1957, ch. 275, § 2; 1957 Supp., § 40-0803; S.L. 1969, ch. 372, § 1; 1973, ch. 323, § 1; 1985, ch. 235, § 71; 1991, ch. 440, § 4; 1991, ch. 444, § 1; 1993, ch. 401, § 37.

Notes to Decisions

When Question Litigated.

The effect of the council’s failure to redistrict the city cannot be litigated in an action to prevent the city from contracting to employ assistants to the city attorney. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

40-08-03.1. Change to ten council members and mayor — Petition required. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

40-08-03.2. City auditor to pass on sufficiency of petition requesting change to ten council members and mayor. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

40-08-04. Election of council members.

In cities containing six hundred inhabitants or less, the council members must be elected at large. Except as provided in section 40-08-04.2, in all other cities operating under the council form of government, the council members must be elected by wards.

Source: S.L. 1887, ch. 73, art. 3, § 2; R.C. 1895, § 2133; S.L. 1897, ch. 40, § 1; R.C. 1899, § 2133; S.L. 1905, ch. 62, § 30; R.C. 1905, § 2661; C.L. 1913, § 3582; S.L. 1929, ch. 168, § 1; 1933, ch. 166, § 1; R.C. 1943, § 40-0804; S.L. 1969, ch. 372, § 6; 1991, ch. 440, § 7; 1993, ch. 401, § 38; 1997, ch. 350, § 1.

40-08-04.1. Procedure when petition to change to ten council members and mayor is filed — Special election — Ballot. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

40-08-04.2. Election at large of council members from wards — Option.

Notwithstanding any other provision of law, the governing body of a city having a population not exceeding five thousand and which is operating under the council form of government may provide by ordinance for the election of all council members at large. If the council members are elected at large pursuant to this section, the governing body of the city may establish wards in accordance with section 40-08-04 and require that the council members elected from each ward must be residents of the ward.

Source: S.L. 1991, ch. 445, § 2.

40-08-05. Qualifications of council members.

An individual is not eligible to the office of council member if the individual is not a qualified elector of and resident within the ward for which the individual was elected, except that in cities where council members are elected at large and not required to be a resident of the ward for which the individual is elected pursuant to section 40-08-04.2, the individual must be a qualified elector of and a resident within the city.

Source: S.L. 1887, ch. 73, art. 3, § 5; R.C. 1895, § 2136; S.L. 1897, ch. 40, § 2; R.C. 1899, § 2136; S.L. 1905, ch. 62, § 33; R.C. 1905, § 2664; C.L. 1913, § 3585; S.L. 1937, ch. 170, § 1; R.C. 1943, § 40-0805; S.L. 1957, ch. 277, § 1; 1957 Supp., § 40-0805; S.L. 1991, ch. 440, § 9; 1991, ch. 445, § 1; 2013, ch. 312, § 1.

Cross-References.

Change of ward boundaries causing council member to reside outside ward, effect, see § 40-52-08.

Notes to Decisions

Residency Requirement.

Although councilman of Medora purchased a home, received mail, banked, and had a telephone in Dickinson, he satisfied the residency requirement of this section to be a councilman of Medora where there was other evidence to establish that he maintained an actual and legal residence in Medora. Dietz v. Medora, 333 N.W.2d 702, 1983 N.D. LEXIS 266 (N.D. 1983).

Collateral References.

Validity of requirement that candidate or public officer have been resident of governmental unit for specified period, 65 A.L.R.3d 1048.

Construction and Application of Statutes and Ordinances Concerning Establishment of Residency, as Condition for Running for Municipal Office. 74 A.L.R.6th 209.

40-08-06. Term of office of council members — Staggered terms provided for in cities where other than ten council members elected.

Council members shall hold office for four years and until their successors are elected and qualified. Terms of council members must be arranged so that one-half of the council members in any city, as nearly as practicable, are elected in any one election. When a city first adopts the council form of government or changes the number of council members, or when a city that has adopted the commission system of government returns to the city council form of government as provided by section 40-04-08, the alternation of the terms of the council members must be perfected as follows: of the council members elected in each ward, the one receiving the greater number of votes shall serve until the fourth Tuesday in June following the second succeeding biennial election and the one receiving the lesser number of votes shall serve until the fourth Tuesday in June following the biennial election succeeding the council member’s election; if the city is not divided into wards, the one-half of the council members elected in the entire city receiving the greater number of votes shall serve until the fourth Tuesday in June following the second succeeding biennial election and the one-half of the council members elected in the entire city receiving the lesser number of votes shall serve until the fourth Tuesday in June following the biennial election succeeding their election. Whenever, for any reason, vacancies exist on the council which require an unexpired term to be filled by election, the unexpired term must be designated on the ballot separate from any other regular term or terms that may also appear on the ballot. Candidates seeking nomination to an unexpired term are required to indicate whether or not they are seeking a regular term of office or an unexpired term of office on their nominating petitions as set forth in section 40-21-07.

Source: S.L. 1887, ch. 73, art. 3, § 3; R.C. 1895, § 2134; R.C. 1899, § 2134; S.L. 1905, ch. 62, § 31; R.C. 1905, § 2662; C.L. 1913, § 3583; S.L. 1933, ch. 167, § 2; 1935, ch. 190, § 1; 1941, ch. 198, § 1; R.C. 1943, § 40-0806; S.L. 1969, ch. 372, § 7; 1991, ch. 440, § 10; 1991, ch. 442, § 5; 1999, ch. 208, § 4; 1999, ch. 289, § 3.

40-08-06.1. Terms of office under ten council members — Staggered terms provided for — Nominating petition requirements. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

40-08-07. Compensation of council members.

Each council member is entitled to receive compensation for services as established by ordinance.

Source: S.L. 1887, ch. 73, art. 5, § 11; R.C. 1895, § 2165; R.C. 1899, § 2165; S.L. 1905, ch. 62, § 66; R.C. 1905, § 2697; C.L. 1913, § 3621; S.L. 1921, ch. 30; 1925 Supp., § 3621; R.C. 1943, § 40-0807; S.L. 1957, ch. 278, § 1; 1957 Supp., § 40-0807; S.L. 1971, ch. 389, § 1; 1975, ch. 369, § 1; 1981, ch. 411, § 1; 1985, ch. 456, § 1; 1991, ch. 440, § 12; 2001, ch. 357, § 2.

Collateral References.

Validity of statutory classifications based on population — Governmental employee salary or pension statutes, 96 A.L.R.3d 538.

40-08-08. Vacancies on council — How filled.

If a vacancy occurs in a city council office by death, resignation, or otherwise, the city council may call a special city election to fill the vacancy for the unexpired term, or may, after fifteen days of the date of the vacancy appoint a person from the ward in which the council member previously holding was elected or appointed to fill the vacancy until the next city election, at which election the unexpired term must be filled. Upon petition of five percent of the qualified electors of the ward, as determined by the total number of votes cast in that ward in the last city general election, the council shall call a special election to fill a vacancy occurring more than six months before the next city election, if the petition has been submitted within fifteen days and before four p.m. of the fifteenth day of the date of the vacancy or of the vacancy being filled by appointment. If the petition is mailed, it must be in the possession of the council or its representative before four p.m. on the fifteenth day after the vacancy occurs or after the vacancy was filled by appointment.

Source: S.L. 1887, ch. 73, art. 3, § 4; R.C. 1895, § 2135; R.C. 1899, § 2135; S.L. 1905, ch. 62, § 32; R.C. 1905, § 2663; C.L. 1913, § 3584; R.C. 1943, § 40-0808; S.L. 1955, ch. 263, § 1; 1957 Supp., § 40-0808; S.L. 1967, ch. 158, § 94; 1985, ch. 235, § 74; 1987, ch. 491, § 1; 1991, ch. 440, § 13; 2011, ch. 294, § 1.

40-08-09. Restrictions on members of council.

  1. Except as provided in this section, no member of the city council shall:
    1. Be eligible to any other office the salary of which is payable out of the city treasury;
    2. Hold any other office under the city government; or
    3. Hold a position of remuneration in the employment of the city.
  2. A member of the city council may serve as an ambulance crew member employed by the city or under a contract with the city and be remunerated for those services or as a volunteer firefighter or ambulance crew member for the city and be compensated for attending training or responding to emergency calls or may be reimbursed for expenses incurred in attending training or in responding to emergency calls.
  3. A member of the city council in a city having a population of five hundred or fewer may hold a position of remuneration in the employment of the city if no other qualified individual is available to hold the position of remuneration at an equal cost to the city. The decision to employ the member of the city council must receive the unanimous approval of the other members of the council, and the approval must be documented in the official minutes of the council. This subsection does not apply to appointed officer positions under section 40-14-04.

Source: S.L. 1887, ch. 73, art. 3, § 5; R.C. 1895, § 2136; S.L. 1897, ch. 40, § 2; R.C. 1899, § 2136; S.L. 1905, ch. 62, § 33; R.C. 1905, § 2664; C.L. 1913, § 3585; S.L. 1937, ch. 170, § 1; R.C. 1943, § 40-0809; S.L. 1957, ch. 277, § 2; 1957 Supp., § 40-0809; S.L. 1967, ch. 158, § 95; 1987, ch. 491, § 2; 2013, ch. 313, § 1; 2017, ch. 278, § 1, effective March 22, 2017.

Cross-References.

Interest in contracts or work of municipality prohibited, see § 40-13-05.

40-08-10. Meetings of council — Regular, special, and for organization.

The city council shall hold its regular meetings at least once a month on a date certain established by resolution or ordinance of the council, and may prescribe by ordinance the manner in which special meetings may be called as well as the establishment of any additional regular meetings desired. If a regular meeting falls upon a holiday, the meeting must be held upon the next business day with the same effect as if conducted upon the day appointed. All regular and special meetings must be held at a time and place designated by the city council. The first meeting for the organization of the city council must be held on the fourth Tuesday in June of each even-numbered year.

Source: S.L. 1887, ch. 73, art. 3, § 9; 1895, ch. 29, § 1; R.C. 1895, § 2140; R.C. 1899, § 2140; S.L. 1905, ch. 62, § 37; R.C. 1905, § 2668; C.L. 1913, § 3589; R.C. 1943, § 40-0810; S.L. 1973, ch. 324, § 1; 1975, ch. 370, § 1; 1991, ch. 442, § 7; 2003, ch. 339, § 2.

Notes to Decisions

Prevention of Secret Meetings.

The public is entitled to have the city council meet at the times specified by the statute or by legal ordinance so as to prevent the council from doing business in any secret meetings. Green v. Beste, 76 N.W.2d 165, 1956 N.D. LEXIS 112 (N.D. 1956).

40-08-11. When president and vice president of council elected.

At the organization meeting in each even-numbered year, the members of the city council shall proceed to elect from their number a president and a vice president who shall hold their respective offices until their successors are elected at the organization meeting following the next biennial election.

Source: S.L. 1887, ch. 73, art. 3, § 10; 1889, ch. 33, § 1; R.C. 1895, § 2141; R.C. 1899, § 2141; S.L. 1905, ch. 62, § 38; R.C. 1905, § 2669; C.L. 1913, § 3590; R.C. 1943, § 40-0811.

40-08-12. Publication of proceedings. [Repealed]

Repealed by I.M. approved November 8, 1994, S.L. 1995, ch. 637, § 2.

40-08-13. Presiding officer of council in absence or disability of mayor — President of council.

The president of the city council shall be the presiding officer of the council in the absence or temporary disability of the mayor. In the absence or disability of the mayor and president of the city council, the vice president shall be the presiding officer.

Source: S.L. 1887, ch. 73, art. 3, § 10; 1889, ch. 33, § 1; R.C. 1895, § 2141; R.C. 1899, § 2141; S.L. 1905, ch. 62, § 38; R.C. 1905, § 2669; C.L. 1913, § 3590; R.C. 1943, § 40-0813.

40-08-14. Mayor — Qualifications — Term.

The chief executive officer of the city is the mayor. The mayor shall be a qualified elector within the city and shall hold office for four years and until a successor is elected and qualified.

Source: S.L. 1887, ch. 73, art. 2, § 1; R.C. 1895, § 2116; R.C. 1899, § 2116; S.L. 1905, ch. 62, § 13; R.C. 1905, § 2644; C.L. 1913, § 3565; S.L. 1933, ch. 167, § 1; R.C. 1943, § 40-0814.

40-08-15. Compensation of mayor.

The mayor shall receive such compensation as the city council may direct by ordinance.

Source: S.L. 1887, ch. 73, art. 5, § 10; R.C. 1895, § 2164; R.C. 1899, § 2164; S.L. 1905, ch. 62, § 65; R.C. 1905, § 2696; C.L. 1913, § 3620; R.C. 1943, § 40-0815; S.L. 2003, ch. 343, § 1.

40-08-16. Vacancy in office of mayor — Filled by election or by council — President of council to be acting mayor.

If a vacancy occurs in the office of mayor, the city council may call a special city election to fill such vacancy for the unexpired term or may, after fifteen days from the date of such vacancy, elect one of its members to act as mayor. The member so elected shall possess all the rights and powers of the mayor until the next election and until a mayor is elected and qualified. Upon petition of five percent of the qualified electors, as determined by the total number of votes cast in the city in the last city general election, the council shall call a special election to fill a vacancy occurring more than six months prior to the next city election, provided such petition is submitted within fifteen days of the date of such vacancy. During the interim between the date when a vacancy occurs in the office of mayor and election and qualification of a successor, the president of the city council shall be the acting mayor.

Source: S.L. 1887, ch. 73, art. 2, §§ 2, 3; R.C. 1895, §§ 2117, 2118; R.C. 1899, §§ 2117, 2118; S.L. 1905, ch. 62, §§ 14, 15; R.C. 1905, §§ 2645, 2646; C.L. 1913, §§ 3566, 3567; R.C. 1943, § 40-0816; S.L. 1955, ch. 263, § 2; 1957 Supp., § 40-0816; S.L. 1985, ch. 235, § 75; 2011, ch. 294, § 2.

DECISIONS UNDER PRIOR LAW

Filling of Vacancy.

A vacancy in the office of mayor, if for more than a year, is filled by election, and if less than that period, by the city council. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

40-08-17. Absence or disability of mayor — Acting mayor.

During the absence of the mayor from the city or during the mayor’s temporary disability, the president of the city council shall be the acting mayor and shall possess all the powers of the mayor. In the absence or disability of the mayor and president of the city council, the vice president of the city council shall be the acting mayor.

Source: S.L. 1887, ch. 73, art. 3, § 10; 1889, ch. 33, § 1; R.C. 1895, § 2141; R.C. 1899, § 2141; S.L. 1905, ch. 62, § 38; R.C. 1905, § 2669; C.L. 1913, § 3590; R.C. 1943, § 40-0817.

40-08-18. Mayor to preside at council meetings — Voting power of mayor.

The mayor shall preside at all meetings of the city council, but shall not vote except in case of a tie, when the mayor shall cast the deciding vote.

Source: S.L. 1887, ch. 73, art. 2, § 6; R.C. 1895, § 2120; R.C. 1899, § 2120; S.L. 1905, ch. 62, § 17; R.C. 1905, § 2648; C.L. 1913, § 3569; R.C. 1943, § 40-0818.

40-08-19. Mayor may remove appointive officers — Reasons for removal to be given.

The mayor may remove any officer appointed by the mayor whenever the mayor is of the opinion that the interests of the city demand such removal, but the mayor shall report the reasons for such removal to the council at its next regular meeting.

Source: S.L. 1887, ch. 73, art. 2, § 7; R.C. 1895, § 2121; R.C. 1899, § 2121; S.L. 1905, ch. 62, § 18; R.C. 1905, § 2649; C.L. 1913, § 3570; R.C. 1943, § 40-0819.

Notes to Decisions

City Council.

This section, requiring the mayor to report his reasons for removal to the city council, was not enacted for the benefit of the officer removed; rather, it is for the benefit of the city council, so that the members thereof might be apprised of the events occurring in city government. Lee v. Walstad, 368 N.W.2d 542, 1985 N.D. LEXIS 324 (N.D. 1985).

This section does not appear to contemplate any action by the city council following the report by the mayor. Lee v. Walstad, 368 N.W.2d 542, 1985 N.D. LEXIS 324 (N.D. 1985).

City Maintenance Person.

A city maintenance person did not meet the criteria to be classified as an officer; therefore, the mayor was without lawful authority to terminate the city maintenance person’s employment without council approval because such authority was not expressly or impliedly conferred upon the mayor by this section, which grants power to remove officers, but not employees of the city. Hennum v. Medina, 402 N.W.2d 327, 1987 N.D. LEXIS 263 (N.D. 1987).

Property Interest in Employment.

Section does not confer a property interest in employment as chief of police. Lee v. Walstad, 368 N.W.2d 542, 1985 N.D. LEXIS 324 (N.D. 1985).

Reinstatement.

Any factual issue as to whether or not mayor reported his reasons for removing chief of police from his position would not be material insofar as that individual’s request for writ of mandamus seeking reinstatement was concerned. Lee v. Walstad, 368 N.W.2d 542, 1985 N.D. LEXIS 324 (N.D. 1985).

40-08-20. Mayor may suppress disorder and keep peace.

The mayor may exercise within the city limits the powers conferred upon a sheriff to suppress disorder and keep the peace.

Source: S.L. 1887, ch. 73, art. 2, § 8; R.C. 1895, § 2122; R.C. 1899, § 2122; S.L. 1905, ch. 62, § 19; R.C. 1905, § 2650; C.L. 1913, § 3571; R.C. 1943, § 40-0820.

Cross-References.

Mayor to order police to attend public meetings, see § 29-02-23.

Notes to Decisions

President of Commission.

The president of a city commission has the same powers as conferred upon the mayor by this statute. State ex rel. Shaw v. Frazier, 39 N.D. 430, 167 N.W. 510, 1918 N.D. LEXIS 40 (N.D. 1918).

40-08-21. Release of prisoners by mayor — Report to council. [Repealed]

Repealed by S.L. 1987, ch. 375, § 16.

40-08-22. Mayor to perform duties prescribed by law — Enforce laws and ordinances.

The mayor shall perform all duties prescribed by law or by the city ordinances and shall see that the laws and ordinances are faithfully executed.

Source: S.L. 1887, ch. 73, art. 2, § 10; R.C. 1895, § 2124; R.C. 1899, § 2124; S.L. 1905, ch. 62, § 21; R.C. 1905, § 2652; C.L. 1913, § 3573; R.C. 1943, § 40-0822.

40-08-23. Inspection of books, records, and papers of city by mayor.

The mayor, at any time, may examine and inspect the books, records, and papers of any agent, employee, or officer of the city.

Source: S.L. 1887, ch. 73, art. 2, § 11; R.C. 1895, § 2125; R.C. 1899, § 2125; S.L. 1905, ch. 62, § 22; R.C. 1905, § 2653; C.L. 1913, § 3574; R.C. 1943, § 40-0823.

40-08-24. Ordinance or resolution signed or vetoed by mayor.

The mayor shall sign or veto each ordinance or resolution passed by the council. Any action vetoed by the mayor may be overridden by the city council as provided under section 40-11-05.

Source: S.L. 1887, ch. 73, art. 2, § 16; R.C. 1895, § 2130; R.C. 1899, § 2130; S.L. 1905, ch. 62, § 27; R.C. 1905, § 2658; C.L. 1913, § 3579; R.C. 1943, § 40-0824; 2015, ch. 279, § 1, effective August 1, 2015.

Notes to Decisions

Paving of Streets.

A resolution for the repaving of certain streets is subject to veto by the mayor. State ex rel. Kettle River Quarries Co. v. Duis, 17 N.D. 319, 116 N.W. 751, 1908 N.D. LEXIS 62 (N.D. 1908).

40-08-25. Messages to council.

The mayor annually and from time to time shall give the council information relative to the affairs of the city and shall recommend for its consideration such measures as the mayor may deem expedient.

Source: S.L. 1887, ch. 73, art. 2, § 12; R.C. 1895, § 2126; R.C. 1899, § 2126; S.L. 1905, ch. 62, § 23; R.C. 1905, § 2654; C.L. 1913, § 3575; R.C. 1943, § 40-0825.

40-08-26. Mayor may call on residents to aid in enforcing ordinances.

When necessary, the mayor may call on each resident of the city over the age of eighteen years to aid in enforcing the laws and ordinances of the city.

Source: S.L. 1887, ch. 73, art. 2, § 13; R.C. 1895, § 2127; R.C. 1899, § 2127; S.L. 1905, ch. 62, § 24; R.C. 1905, § 2655; C.L. 1913, § 3576; S.L. 1941, ch. 205, § 1; R.C. 1943, § 40-0826; 2015, ch. 279, § 2, effective August 1, 2015.

40-08-27. Police chief and police officers appointed by mayor.

The mayor may appoint any number of police officers the mayor and the city council deem necessary to preserve the peace of the city and the mayor shall appoint one of the number as chief of police. Such appointment shall be subject to the approval of the council.

Source: S.L. 1887, ch. 73, art. 2, § 17; R.C. 1895, § 2131; R.C. 1899, § 2131; S.L. 1905, ch. 62, § 28; R.C. 1905, § 2659; C.L. 1913, § 3580; R.C. 1943, § 40-0827.

40-08-28. Mayor may administer oaths.

The mayor of each city may administer oaths and affirmations.

Source: S.L. 1887, ch. 73, art. 5, § 13; R.C. 1895, § 2167; R.C. 1899, § 2167; S.L. 1905, ch. 62, § 68; R.C. 1905, § 2699; C.L. 1913, § 3623; R.C. 1943, § 40-0828.

CHAPTER 40-09 Governing Body and Executive Officer in Commission Cities

40-09-01. Board of city commissioners — Composition.

The governing body of a city operating under the commission system of government is the board of city commissioners which is composed of the president of the board of city commissioners and not less than three city commissioners. The number of city commissioners may be increased or decreased pursuant to section 40-06-09.

Source: S.L. 1907, ch. 45, § 15; 1911, ch. 77, § 15; C.L. 1913, § 3785; R.C. 1943, § 40-0901; S.L. 1993, ch. 401, § 39.

40-09-02. Governing body is judge of election and qualifications of members.

The board of city commissioners shall be the judge of the election and qualifications of its own members.

Source: S.L. 1907, ch. 45, § 46; 1911, ch. 77, § 46; C.L. 1913, § 3816; R.C. 1943, § 40-0902.

40-09-03. Regulations governing election of commissioners.

The members of the board of city commissioners must be elected at large and not by wards. Each voter may vote for one of the candidates for the office of president of the board of city commissioners and for as many candidates for the office of city commissioner as there are commissioners to be elected. Candidates for the city commission may run for either the office of city commissioner or the office of president of the board of city commissioners but not both in the same election. A candidate may run for only one office in a city at any given election.

Source: S.L. 1907, ch. 45, § 15; 1911, ch. 77, § 15; C.L. 1913, § 3785; R.C. 1943, § 40-0903; 2007, ch. 350, § 1; 2009, ch. 180, § 26.

DECISIONS UNDER PRIOR LAW

Cumulative Voting not Authorized.

Cumulative voting in the election of city commissioners is not authorized. State ex rel. Shaw v. Thompson, 21 N.D. 426, 131 N.W. 231, 1911 N.D. LEXIS 102 (N.D. 1911).

40-09-04. Commissioners — Terms — Resignations.

Each commissioner and the president of the board of city commissioners shall hold office for four years commencing on the fourth Tuesday in June of the year in which the officer was elected and until a successor has been duly elected and qualified. The commission shall establish by ordinance a procedure whereby one-half of all commissioners, as nearly as practicable, are elected biennially. The president or any other member of the board may resign from office by filing a written resignation with the city auditor, who shall submit the resignation to the board of city commissioners at its next regular meeting or at a special meeting called for consideration of the resignation. The resignation is effective upon its acceptance by the board.

Source: S.L. 1907, ch. 45, § 16; 1911, ch. 77, § 16; 1913, ch. 78, § 1; C.L. 1913, § 3786; S.L. 1931, ch. 203, § 1; R.C. 1943, § 40-0904; S.L. 1991, ch. 442, § 8; 1993, ch. 401, §§ 40, 41; 2001, ch. 179, § 5.

40-09-05. President and board of commissioners succeed to powers and duties of mayor and council.

If the city previously was organized under the council form of government, the first president and the other members of the first board of city commissioners elected after a city has incorporated under the city commission system of government are the successors of the mayor and council members of the city. Upon the qualification of the president and other members of the board, all the powers, rights, and duties of the mayor and council of the city cease. Whenever the city previously, under the decree or judgment of any court or under any law, ordinance, or resolution, has been entitled to representation through the mayor of the city and one or more of the council members of the city, on the board of directors of any incorporated company in which the city may own stock or be interested, it must be represented on the board of directors by the president of the board of city commissioners and by two other members of the board to be selected by the board.

Source: S.L. 1907, ch. 45, § 19; 1911, ch. 77, § 19; C.L. 1913, § 3789; R.C. 1943, § 40-0905; S.L. 1991, ch. 440, § 14.

40-09-06. Style of board — Oath and salary of commissioners.

The commissioners and the president of the board constitute the board of city commissioners and shall take an oath faithfully to perform the duties of their respective offices. The monthly salary of each city commissioner must be fixed by ordinance. The president of a commission may receive a salary of up to fifty percent more than the level set for each commissioner upon resolution by the board of city commissioners.

Source: S.L. 1907, ch. 45, §§ 20, 32; 1911, ch. 77, §§ 20, 32; 1913, ch. 80, § 1; C.L. 1913, §§ 3790, 3802; S.L. 1943, ch. 182, §§ 1, 2; R.C. 1943, § 40-0906; S.L. 1957, ch. 278, § 2; 1957 Supp., § 40-0906; S.L. 1967, ch. 326, § 1; 1971, ch. 390, § 1; 1975, ch. 369, § 2; 1985, ch. 456, § 2; 2001, ch. 357, § 3.

Collateral References.

Validity of statutory classifications based on population — Governmental employee salary or pension statutes, 96 A.L.R.3d 538.

40-09-07. Bond and oath of commissioner. [Repealed]

Repealed by S.L. 2011, ch. 294, § 5.

40-09-08. President of board as executive officer — Duties — No veto power.

The president of the board of city commissioners shall be the executive officer of the city and shall see that all the laws of the city are enforced. The president shall have the right to vote as a member of the board but shall have no veto power.

Source: S.L. 1907, ch. 45, §§ 22, 25; 1911, ch. 77, §§ 22, 25; C.L. 1913, §§ 3792, 3795; S.L. 1927, ch. 192, § 1; R.C. 1943, § 40-0908.

40-09-09. Vice president and acting president of board — Powers to act.

At the first meeting of the board after each biennial election, one of its own members shall be elected vice president. The vice president shall perform all the duties of the office of president in the absence or disability of the president to act. In the absence or disability to act of both the president and the vice president, the board shall elect one of its members as acting president, who shall have all the powers and perform all the duties of the president during the absence or disability.

Source: S.L. 1907, ch. 45, § 27; 1911, ch. 77, § 27; C.L. 1913, § 3797; R.C. 1943, § 40-0909.

40-09-10. Filling vacancies in board.

If a vacancy occurs in the office of a city commissioner or president of the board of city commissioners, the board may call a special city election to fill such vacancy for the unexpired term, or may, after fifteen days from the date of such vacancy appoint a person to fill such vacancy until the next city election, at which election the unexpired term shall be filled. Upon petition of five percent of the qualified electors, as determined by the total number of votes cast in the city in the last city general election, the commission shall call a special city election to fill a vacancy occurring more than six months prior to the next city election, provided such petition has been submitted within fifteen days of the date of such vacancy.

Source: S.L. 1907, ch. 45, § 33; 1911, ch. 77, § 33; C.L. 1913, § 3803; S.L. 1935, ch. 193, § 1; R.C. 1943, § 40-0910; S.L. 1955, ch. 263, § 3; 1957 Supp., § 40-0910; S.L. 1985, ch. 235, § 76; 2011, ch. 294, § 3.

40-09-11. Meetings of board — Regular and special — Action on departmental matters.

The board of city commissioners shall meet in regular meeting at least once a month and at such additional times as the board, by ordinance, may establish. All regular meetings shall be held at a time and place to be designated by the board. No action of the board shall be effective unless upon a vote of a majority of a quorum of the members of such board. No final action shall be taken in any matter concerning the special department of any absent commissioner unless such business has been made a special order of the day or such action is taken at a regular meeting of the board. Special meetings may be called at any time by the president or any two members of the board to consider matters mentioned in the call of such meeting. Written notice of any special meeting shall be given to each member of the board.

Source: S.L. 1907, ch. 45, § 28; 1911, ch. 77, § 28; C.L. 1913, § 3798; R.C. 1943, § 40-0911; S.L. 1955, ch. 264, § 1; 1957 Supp., § 40-0911; S.L. 2003, ch. 339, § 3.

Notes to Decisions

Contracts.

This section requires a majority vote of the commissioners to ratify any contract. Firefighters Local 642 v. Fargo, 321 N.W.2d 473, 1982 N.D. LEXIS 289 (N.D. 1982).

Where city was acting within its powers to enter into a labor agreement with firefighters but the city did not comply with the statutory procedural requirements necessary to form a contract with a municipality, city’s liability to firefighters was limited to the reasonable value of services rendered. Firefighters Local 642 v. Fargo, 321 N.W.2d 473, 1982 N.D. LEXIS 289 (N.D. 1982).

Collateral References.

Abstention from voting of member of municipal council present at session as affecting requisite voting majority, 63 A.L.R.3d 1072.

40-09-12. Departments of administration of city divided among commissioners — Duties.

The board of city commissioners, by a majority vote of all the members thereof, shall designate from among its members:

  1. A police and fire commissioner who shall have under that commissioner’s special charge the enforcement of all police regulations of the city and the general supervision of the fire department of the city.
  2. A commissioner of streets and improvements who shall have under that commissioner’s special charge the supervision of the streets and alleys of the city and who shall be charged with responsibility for the lighting, cleaning, and sanitary condition of the streets and alleys and with the enforcement of all rules and regulations relating thereto, and with the preservation of the health of the inhabitants of the city. That commissioner shall have under that commissioner’s special charge the supervision of all public improvements and shall see that all contracts for such improvements and the conditions of all grants of franchises or privileges are complied with faithfully and performed.
  3. A waterworks and sewerage commissioner who shall have under that commissioner’s special charge the waterworks and sewerage department of the city and who shall see to the enforcement of all regulations with respect to those departments and all revenue pertaining to those departments.
  4. A commissioner of finance and revenue who shall have under that commissioner’s special charge the enforcement of all laws for the assessment and collection of taxes of every kind and the collection of all revenues belonging to the city, from whatever source the same may be derived, and who shall examine into and keep informed as to the finances of the city.

The duties assigned to the various members of the board by this section may be otherwise distributed by a majority vote of the board’s members.

Source: S.L. 1907, ch. 45, § 24; 1911, ch. 77, § 24; C.L. 1913, § 3794; R.C. 1943, § 40-0912.

40-09-13. Accounts — Audited by respective commissioners — Approved by board.

The commissioner who is the head of each department shall audit all accounts against it, but before payment the accounts shall be acted upon and approved by at least three members of the board of city commissioners. Approval by at least three members of the board of city commissioners shall be recorded in the record of the board and this shall be sufficient to indicate approval without requiring the approving members to sign or initial the voucher or order for payment of the account.

Source: S.L. 1907, ch. 45, § 25; 1911, ch. 77, § 25; C.L. 1913, § 3795; S.L. 1927, ch. 192, § 1; R.C. 1943, § 40-0913; S.L. 1975, ch. 366, § 5.

40-09-14. Rules and regulations governing departments and agencies of city made by board.

The board of city commissioners shall have the sole authority to pass and adopt rules and regulations concerning the organization, management, and operation of all the departments of the city and the other agencies created by it for the administration of the city’s affairs.

Source: S.L. 1907, ch. 45, § 23; 1911, ch. 77, § 23; C.L. 1913, § 3793; R.C. 1943, § 40-0914.

40-09-15. Special police — President of board may call — Powers. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

40-09-16. Board may summon and compel attendance of witnesses and books — Punish for contempt — Process.

Whenever it is necessary for the more effective discharge of its duties, the board of city commissioners may summon and compel the attendance of witnesses and the production of books and papers before it. The board may punish for contempt of the board with the same fines and penalties as a district judge may inflict for contempt of the district court. All process necessary to enforce the powers conferred by this section must be signed by the president of the board, attested by the city auditor, and served by any member of the police force of the city.

Source: S.L. 1907, ch. 45, § 22; 1911, ch. 77, § 22; C.L. 1913, § 3792; R.C. 1943, § 40-0916; S.L. 1991, ch. 326, § 153.

40-09-17. Restrictions on members of board.

  1. Except as provided in this section, a member of the board of city commissioners may not:
    1. Be eligible to any other office the salary of which is payable out of the city treasury;
    2. Hold any other office under the city government; and
    3. Hold a position of remuneration in the employment of the city.
  2. A member of a board of city commissioners may serve as an ambulance crew member employed by the city or under a contract with the city and be remunerated for those services or as a volunteer firefighter or ambulance crew member for the city and be compensated for attending training or responding to emergency calls or may be reimbursed for expenses incurred in attending training or in responding to emergency calls.
  3. A member of the board of city commissioners in a city having a population of five hundred or fewer may hold a position of remuneration in the employment of the city if no other qualified individual is available to hold the position of remuneration at an equal cost to the city. The decision to employ the member of the city commission must receive the unanimous approval of the other members of the commission, and the approval must be documented in the official minutes of the commission. This subsection does not apply to appointed officer positions under section 40-15-05.

Source: S.L. 1967, ch. 158, § 96; 2013, ch. 313, § 2; 2017, ch. 278, § 2, effective March 22, 2017.

Cross-References.

Interest in contracts or work of municipality prohibited, see § 40-13-05.

CHAPTER 40-10 City Manager Plan

40-10-01. Petition for city manager — Contents — Notice of election — Election.

Twenty-five percent or more of the qualified electors of a city, as shown by the number of votes cast for the executive officer of the city at the preceding city election, may petition for the city manager plan of government. Within thirty days after such petition is filed with the city auditor, the governing body of the city shall provide for the submission of such proposal to the qualified electors of the city at an election to be held within ninety days after such filing. The city auditor shall give thirty days’ notice of the date of the election and of the purposes thereof. The notice of election shall state briefly the powers of the city manager if the plan should be adopted. The election shall be held, the votes canvassed, and the results declared in the same manner as in the case of city elections.

Source: S.L. 1919, ch. 80, § 1; 1925 Supp., § 3770b1; S.L. 1933, ch. 172, § 2; R.C. 1943, § 40-1001; S.L. 1985, ch. 235, § 77.

Collateral References.

Withdrawal of name from petition and time therefor, 27 A.L.R.2d 604.

40-10-02. Vote required to adopt plan — Effective date.

If a majority of the votes cast on the question at the election favors the adoption of the city manager plan, the governing body shall declare the plan adopted and shall fix the date when the plan becomes effective. The date must be after the first regular meeting of the governing body in the month of July following the election.

Source: S.L. 1919, ch. 80, § 2; 1925 Supp., § 3770b2; S.L. 1933, ch. 172, § 3; R.C. 1943, § 40-1002; S.L. 1991, ch. 442, § 9; 1993, ch. 401, §§ 42, 43; 1997, ch. 108, § 23.

40-10-03. City manager — How selected — Qualifications — Compensation — Term.

The city manager shall be the chief administrative officer of the city and shall be chosen by the governing body solely on the basis of the person’s qualifications. The choice shall not be limited to the inhabitants of the city or state and a majority vote of the members of the governing body shall be necessary to make the choice. The city manager shall receive a compensation of not less than one thousand dollars a year and shall be chosen for an indefinite term.

Source: S.L. 1919, ch. 80, § 3; 1925 Supp., § 3770b3; S.L. 1933, ch. 172, § 4; R.C. 1943, § 40-1003.

40-10-04. Removal of city manager — Summary proceedings — Charges brought — Suspension — Absence or disability of city manager.

The city manager may be removed from office summarily by the governing body at any time within six months after appointment. After that period, the city manager may be removed only pursuant to written charges made and filed with the city auditor by the executive officer or by some member of the governing body. Upon the filing of the charges if the city manager desires a hearing thereon, the city manager shall file a written demand for such hearing within three days after the notice of the filing of such charges has been served upon the city manager. In the absence of such demand, the city manager shall be deemed to have waived a hearing, but shall not be removed finally until a hearing is had or waived. Pending such hearing or the waiver thereof, the city manager may be suspended by the governing body. During the absence or disability of the city manager, the governing body shall designate some properly qualified person to perform the duties of the city manager’s office. The decision of the governing body on the selection or removal of a city manager or of a person to perform the duties of such office shall be final.

Source: S.L. 1919, ch. 80, § 3; 1925 Supp., § 3770b3; S.L. 1933, ch. 172, § 4; R.C. 1943, § 40-1004.

40-10-05. Powers of governing body.

The governing body shall have in addition to other powers granted by law the following powers:

  1. It may inquire into the conduct of any office, department, or agency of the city.
  2. It may by ordinance establish, change, and abolish offices, departments, and agencies, other than those required by law, and may add to or take away from the duties of the various offices, departments, and agencies.

Source: S.L. 1919, ch. 80, § 4; 1925 Supp., § 3770b4; S.L. 1933, ch. 172, § 5; R.C. 1943, § 40-1005; S.L. 1951, ch. 262, § 1; 1957 Supp., § 40-1005.

40-10-06. Duties of city manager.

The city manager shall:

  1. Be responsible to the governing body of the municipality for the proper administration of all of the affairs of the city.
  2. Prepare and submit to the governing body an annual preliminary budget as provided for under chapter 40-40, and shall be responsible for the administration of the final budget, subject to the control of the governing body as to changes in the same.
  3. Be responsible for law enforcement.
  4. Appoint and remove, subject to civil service regulations if in effect, all heads of administrative departments and employees of the city however, the city manager shall neither appoint nor remove the head of any department without first consulting with the governing body.
  5. Keep the governing body advised of the financial condition of the city and make such recommendations as may seem desirable.
  6. Be responsible for the purchase of all supplies, materials, and equipment for the operations of the city provided, that for any purchase the cost of which exceeds one thousand dollars, the governing body shall establish the procedure for purchasing the same.

Source: S.L. 1919, ch. 80, § 4; 1925 Supp., § 3770b4; S.L. 1933, ch. 172, § 5; R.C. 1943, § 40-1006; S.L. 1951, ch. 262, § 2; 1957 Supp., § 40-1006; S.L. 1971, ch. 391, § 1.

40-10-07. Conflict of powers and duties of city manager and other officers — Who to govern.

If the powers granted to a city manager by this chapter shall conflict with or shall be opposed to the powers or duties imposed upon or granted by law to the executive officer or governing body, the powers or duties imposed or granted by law to the executive officer or the governing body shall be deemed to be suspended for and during the period in which the city manager plan is in force in the city and during the employment of a city manager thereunder.

Source: S.L. 1919, ch. 80, § 4; 1925 Supp., § 3770b4; S.L. 1933, ch. 172, § 5; R.C. 1943, § 40-1007.

40-10-08. Election to determine question of retention of city manager plan — Procedure thereafter.

At any time after the city manager plan has been in force in any city for a period of five years or more, the governing body of the city may submit at any regular election the question of whether or not such plan shall be retained. If a petition signed by forty percent or more of the qualified electors of the city, as shown by the votes cast for the executive officer at the preceding city election, requesting the submission of such question is filed with the city auditor, the governing body shall submit such proposal to the qualified electors of the city at an election to be held within ninety days after the filing of such petition. The signatures to such petition need not be appended to a single paper, but each single paper so used shall clearly state the purpose of the petition at the top of the paper, and each signature shall have been placed thereon not more than ninety days prior to the date on which the petition is filed in the office of the city auditor. Upon each paper one of the qualified electors signing such petition shall, under oath before an officer competent to administer oaths, swear that that person witnessed the signing of each signature appearing on such paper and that each signature appearing upon such paper is the genuine signature of the person whose name it purports to be. Each petition, in addition to the names of the signers, shall contain the name of the street and the number of the house in which each petitioner resides, the length of the petitioner’s residence in the state of North Dakota and in the city, and the date on which the petitioner signed the petition. Any petitioner shall be permitted to withdraw the petitioner’s name from a petition at any time prior to action by the governing body calling the election as provided herein. Such question shall not be submitted more than once in every five years. If a majority of the votes cast on the question at the election shall be against retaining the city manager plan, the city shall revert to the plan in force previous to the adoption of the city manager plan, and the provisions of this chapter shall not be applicable to such city except after another compliance with its terms. The governing body shall fix the date, not less than three months nor more than six months after an election at which the majority vote on the question is against the retention of the city manager plan, when such plan shall cease to be operative in the municipality.

Source: S.L. 1919, ch. 80, § 5; 1925 Supp., § 3770b5; S.L. 1933, ch. 172, § 6; R.C. 1943, § 40-1008; S.L. 1959, ch. 304, § 1; 1985, ch. 235, § 78; 1997, ch. 108, § 24.

CHAPTER 40-11 Ordinances

40-11-01. Enacting clause for ordinances.

The enacting clause of every ordinance adopted by a municipal corporation shall be: “Be it ordained by the _____________________________________________________________________ (governing body) of the city of _____________________________________________________________________ .” Such caption, however, may be omitted when the ordinances are published in book form or are revised and digested.

Source: S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, § 2147; R.C. 1899, § 2147; S.L. 1905, ch. 62, § 44; R.C. 1905, § 2675; S.L. 1907, ch. 45, § 30; 1911, ch. 77, § 30; C.L. 1913, §§ 3596, 3800; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1101; S.L. 1967, ch. 323, § 120.

Collateral References.

Conclusiveness of declaration in ordinance of an emergency, 35 A.L.R.2d 586.

Municipal regulation of junk dealers as affected by method of enactment, 45 A.L.R.2d 1391, 1397.

Law Reviews.

Powers and Procedures of City and Village Governing Boards, 31 N.D. L. Rev. 137 (1955).

40-11-02. Procedure in passing ordinances.

All ordinances shall be read twice and the second reading and final passage shall not be had in less than one week after the first reading. After the first reading and before final passage, an ordinance may be amended. Except as otherwise specifically provided, a majority of all of the members of the governing body must concur in the passage of an ordinance and in the creation of any liability against the city and in expending or appropriating money.

Source: S.L. 1887, ch. 73, art. 3, §§ 12, 16; R.C. 1895, §§ 2143, 2147; R.C. 1899, §§ 2143, 2147; S.L. 1905, ch. 62, §§ 40, 44; R.C. 1905, §§ 2671, 2675; C.L. 1913, §§ 3592, 3596; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1102.

Notes to Decisions

Concurrence of a Majority.

The requirement of concurrence of a majority of all members applies only to the second reading and final passage. Northwestern Bell Tel. Co. v. Board of Comm'rs, 211 N.W.2d 399, 1973 N.D. LEXIS 125 (N.D. 1973).

Passed Vote.

Since N.D.C.C. § 40-11-03 makes no provision for a passed vote, it is presumed that all members have the obligation of voting either for or against a proposed ordinance; and a passed vote is to be considered as a vote with the remaining majority, if a quorum is present. Northwestern Bell Tel. Co. v. Board of Comm'rs, 211 N.W.2d 399, 1973 N.D. LEXIS 125 (N.D. 1973).

Collateral References.

Abstention from voting of member of municipal council present at session as affecting requisite voting majority, 63 A.L.R.3d 1072.

40-11-03. Yea and nay vote on passage — When required.

The yeas and nays shall be taken and entered on the journal of the governing body’s proceedings upon the passage of all ordinances and upon all propositions creating any liability against the city or providing for the expenditure or appropriation of money, and in all other cases at the request of any member.

Source: S.L. 1887, ch. 73, art. 3, § 12; R.C. 1895, § 2143; R.C. 1899, § 2143; S.L. 1905, ch. 62, § 40; R.C. 1905, § 2671; S.L. 1907, ch. 45, § 46; 1911, ch. 77, § 46; C.L. 1913, §§ 3592, 3816; R.C. 1943, § 40-1103.

Notes to Decisions

Abstentions.

Each member of the board, if present, is obligated to vote on a measure presented to the board; this section makes no provision for recording abstentions. Northwestern Bell Tel. Co. v. Board of Comm'rs, 211 N.W.2d 399, 1973 N.D. LEXIS 125 (N.D. 1973).

Amendment to Ordinance.

An ordinance which is adopted with amendments by a yea and nay vote is not invalid, even though the amendments may have been adopted by a viva voce vote merely. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

Applicable Only to Cities.

This section is a part of the city charter, and is applicable only to cities. Ashley v. Minneapolis, St. Paul, & Sault Ste. Marie Ry., 37 N.D. 147, 163 N.W. 727, 1917 N.D. LEXIS 84 (N.D. 1917).

First and Second Reading.

The requirement of concurrence of a majority of all members applies only to the second reading and final passage. Northwestern Bell Tel. Co. v. Board of Comm'rs, 211 N.W.2d 399, 1973 N.D. LEXIS 125 (N.D. 1973).

Liability of City.

The employment of an attorney by a city should have been authorized or ratified by a yea and nay vote of the council to make the city liable for his compensation. Bosard v. Grand Forks, 13 N.D. 587, 102 N.W. 164, 1904 N.D. LEXIS 83 (N.D. 1904).

A police officer of a city has no power to make a binding contract for or create a contractual liability against the city. Trinty Hosp. Ass'n v. Minot, 76 N.W.2d 916, 1956 N.D. LEXIS 125 (N.D. 1956).

Where, for a number of years, prisoners convicted of violations of city ordinances were accepted by the county jail, the use of the jail by the city was deemed to have been consented to by the county commissioners and the city was deemed to have impliedly contracted to pay for the maintenance of the prisoners. Grand Forks County v. Grand Forks, 123 N.W.2d 42, 1963 N.D. LEXIS 104 (N.D. 1963).

Mandatory Requirement.

This provision is mandatory and not discretionary, and the journal must show the vote of each member of the city council on the passage of an ordinance. Pickton v. Fargo, 10 N.D. 469, 88 N.W. 90, 1901 N.D. LEXIS 63 (N.D. 1901), City of Grafton v. S. Paul, M. & M. Ry., 16 N.D. 313, 113 N.W. 598, 1907 N.D. LEXIS 59 (N.D. 1907), and Mitchell v. Parshall, 108 N.W.2d 12, 1961 N.D. LEXIS 65 (N.D. 1961).

Passed Vote.

Since N.D.C.C. § 40-11-03 makes no provision for a passed vote, it is presumed that all members have the obligation of voting either for or against a proposed ordinance; and a passed vote is to be considered as a vote with the remaining majority, if a quorum is present. Northwestern Bell Tel. Co. v. Board of Comm'rs, 211 N.W.2d 399, 1973 N.D. LEXIS 125 (N.D. 1973).

Resolutions.

The yeas and nays need not be taken upon the passage of a resolution levying a general city tax. Shattuck v. Smith, 6 N.D. 56, 69 N.W. 5 (N.D. 1896).

The provision of this section requiring the yeas and nays to be taken and entered in the journal of the governing body of a city upon the passage of all ordinances does not apply to the passage of a resolution, in the absence of a request for such entry by a member of the governing body, where the resolution does not create a liability against the city or provide for the expenditure or appropriation of money. Mitchell v. Parshall, 108 N.W.2d 12, 1961 N.D. LEXIS 65 (N.D. 1961).

40-11-04. Ordinance required for the transfer of property.

Every municipality shall enact an ordinance providing for the conveyance, sale, lease, or disposal of personal and real property of the municipality. When the property to be disposed of is estimated by the governing body of the municipality to be of a value of less than two thousand five hundred dollars, the property may be sold at private sale upon the proper resolution of the governing body. In all other cases, the property may be sold only at public sale or as provided under section 40-11-04.2. This section and sections 40-11-04.1 and 40-11-04.2 do not apply to a lease by a municipality to the state, or any agency or institution of the state, of any waterworks, mains, and water distribution system and any equipment or appliances connected therewith and any real property related thereto pursuant to subsection 5 of section 40-33-01 or of any sewage system and all related property for the collection, treatment, purification, and disposal in a sanitary manner of sewage pursuant to section 40-34-01.2.

Source: S.L. 1887, ch. 73, art. 3, § 12; R.C. 1895, § 2143; R.C. 1899, § 2143; S.L. 1905, ch. 62, § 40; R.C. 1905, § 2671; C.L. 1913, § 3592; R.C. 1943, § 40-1104; S.L. 1967, ch. 323, § 121; 1975, ch. 371, § 3; 1987, ch. 156, § 3; 2003, ch. 342, § 4.

Notes to Decisions

Low-Cost Housing.

Even though city failed to comply with requirements of this section in transferring property for use as low-cost housing, it exercised its powers in compliance with N.D.C.C. §§ 23-11-33 and 54-40-08 and therefore was not required to comply with this section. Dahl v. Grafton, 286 N.W.2d 774, 1979 N.D. LEXIS 322 (N.D. 1979).

40-11-04.1. Real property transfer requirements.

Upon resolution by the governing body of a city authorizing the public sale of real property, a notice containing a description of the property to be sold and designating the place where and the day and hour when the sale will be held shall be published in the city’s official newspaper as provided in section 40-01-09 once each week for two consecutive weeks with the last publication being at least ten days in advance of the date set for the sale. The notice shall specify whether the bids are to be received at auction or as sealed bids as determined by the governing body of the city. The property advertised shall be sold to the highest bidder if that person’s bid is deemed sufficient by a majority of the members of the governing body.

Source: S.L. 1975, ch. 371, § 1; 1977, ch. 375, § 5.

Notes to Decisions

Disposal of Property.

Where the city did enact an ordinance pursuant to N.D.C.C. § 40-11-04, this section and N.D.C.C. § 40-11-04.2 and followed the procedures in that ordinance in selling the existing facilities, there was no error in the trial court’s determination that the city did dispose of the property pursuant to N.D.C.C. ch. 40-11, and in full compliance with that chapter’s requirements of notice, bidding, and all other requirements. Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

40-11-04.2. Transfer of real property by nonexclusive listing agreements.

As an alternative to the procedure established under section 40-11-04.1, the governing body of a city may by resolution describe the real property of the city which is to be sold; provide a maximum rate of fee, compensation, or commission; and provide that the city reserves the right to reject any and all offers determined to be insufficient. After adoption of the resolution, the governing body of a city may engage licensed real estate brokers to attempt to sell the described property by way of nonexclusive listing agreements.

Source: S.L. 1987, ch. 156, § 4.

Notes to Decisions

Disposal of Property.

Where the city did enact an ordinance pursuant to N.D.C.C. §§ 40-11-04, 40-11-04.1 and this section and followed the procedures in that ordinance in selling the existing facilities, there was no error in the trial court’s determination that the city did dispose of the property pursuant to N.D.C.C. ch. 40-11, and in full compliance with that chapter’s requirements of notice, bidding, and all other requirements. Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

40-11-05. Ordinances and resolutions adopted in council cities — Mayor’s veto power — Reconsideration after veto.

An ordinance or resolution adopted by the city council of a city operating under the council form of government is not enacted until the ordinance or resolution is approved by the mayor or passed over the mayor’s veto. An ordinance or resolution passed by the governing body of a city operating under the council form of government must be deposited in the office of the city auditor for the approval of the mayor. If the mayor approves the ordinance or resolution, the mayor shall sign the ordinance or resolution. An ordinance or resolution not approved by the mayor must be returned by the mayor with the mayor’s objections in writing to the next regular or special meeting of the council occurring not less than five days after the passage of the ordinance or resolution. The veto may extend to an entire ordinance or resolution or to any one or more items or appropriations contained in any ordinance or resolution making an appropriation. If a veto extends to only a part of an ordinance or resolution, the residue takes effect. If the mayor fails to return any ordinance or resolution with the mayor’s objections within the time specified in this section, the mayor is deemed to have approved the ordinance or resolution. Any veto of an ordinance or resolution may be overridden by the city council, if two-thirds of its members pass a motion to override the veto. Upon such action, the ordinance or resolution is effective notwithstanding the veto. The vote to pass an ordinance or resolution over the mayor’s veto must be taken by yeas and nays and entered in the journal.

Source: S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, § 2147; R.C. 1899, § 2147; S.L. 1905, ch. 62, § 44; R.C. 1905, § 2675; C.L. 1913, § 3596; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1105; 2015, ch. 279, § 3, effective August 1, 2015.

40-11-06. Publication of ordinances.

The title and penalty clause of every ordinance imposing any penalty, fine, imprisonment, or forfeiture for a violation of its provisions, after the final adoption of the ordinance, shall be published in one issue of the official newspaper of the city.

Source: S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, § 2147; R.C. 1899, § 2147; S.L. 1905, ch. 62, § 44; R.C. 1905, § 2675; S.L. 1907, ch. 45, § 29; 1911, ch. 77, § 29; C.L. 1913, §§ 3596, 3799; S.L. 1917, ch. 74, § 1; 1925 Supp., § 3799; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1106; S.L. 1983, ch. 82, § 77.

Cross-References.

Official newspaper of municipality, see § 40-01-09.

40-11-07. Effective date of ordinances.

Ordinances finally approved by the governing body of a municipality and which require publication shall take effect and be in force from and after the publication thereof unless otherwise expressly provided in the ordinance. Ordinances which do not require publication shall take effect and be in force from and after the final approval thereof unless otherwise expressly provided therein.

Source: S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, § 2147; R.C. 1899, § 2147; S.L. 1905, ch. 62, § 44; R.C. 1905, § 2675; S.L. 1907, ch. 45, § 29; 1911, ch. 77, § 29; C.L. 1913, §§ 3596, 3799; S.L. 1917, ch. 74, § 1; 1925 Supp., § 3799; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1107.

40-11-08. Ordinance book required — Ordinance book and certified copies of ordinances as evidence.

Each municipality shall keep an ordinance book. The city auditor shall record in such book all ordinances finally passed and approved, and when any ordinance has been published, the city auditor shall record therein the affidavit of publication or of posting. The ordinance book, or copies of ordinances as recorded therein, certified by the city auditor, shall be received as evidence without further proof. If the ordinances of a municipality have been printed in book or pamphlet form by authority of the governing body of the municipality, such book or pamphlet shall be received as evidence of the existence of the ordinances therein contained.

Source: Pol. C. 1877, ch. 24, § 57; S.L. 1887, ch. 73, art. 3, § 16; R.C. 1895, §§ 2147, 2417; R.C. 1899, §§ 2147, 2417; S.L. 1905, ch. 62, § 44; R.C. 1905, §§ 2675, 2925; C.L. 1913, §§ 3596, 3931; S.L. 1935, ch. 192, § 1; R.C. 1943, § 40-1108; S.L. 1967, ch. 323, § 122.

Notes to Decisions

Proof of Passage.

An ordinance may be proved as to its contents as well as to its passage by the introduction in evidence of the original record of such ordinance properly identified as such. City of Grafton v. St. Paul M. & M. Ry., 16 N.D. 313, 113 N.W. 598 (1907).

40-11-09. Enactment and revision of ordinances.

The executive officer of a municipality may appoint, by and with the advice and consent of the governing body of the municipality, one or more competent persons to prepare and submit to the governing body, for its adoption or rejection, an ordinance for the revision or amendment of existing ordinances or for the enactment of new and additional ordinances for such municipality. The attorney for the municipality, if it has an attorney, shall be appointed as one of the persons to prepare and submit such ordinance. The compensation of the revisor or revisors, including that of the attorney, shall be determined by the governing body and shall be paid out of the municipal treasury. Such revision, including any additional ordinances and amendments to existing ordinances contained therein, may be passed as a single ordinance and may be published in pamphlet or book form, by and under the authority of the governing body of the municipality, and shall be valid and effective without publication in a newspaper or posting.

Source: S.L. 1887, ch. 73, art. 2, § 15; R.C. 1895, § 2129; R.C. 1899, § 2129; S.L. 1905, ch. 62, § 26; R.C. 1905, § 2657; S.L. 1913, ch. 77, § 1; C.L. 1913, § 3578; R.C. 1943, § 40-1109.

Notes to Decisions

Amendments to Ordinances.

This section requires that amendments to ordinances be accomplished by means of another ordinance rather than by resolution; where the requirements of N.D.C.C. §§ 40-11-01 and 40-11-02 were not met, resolution was ineffective as an amendment to city’s existing liquor licensing ordinances. Mini Mart v. City of Minot, 347 N.W.2d 131, 1984 N.D. LEXIS 274 (N.D. 1984).

40-11-09.1. Presumption of regular adoption, enactment, or amendment of resolution or ordinance.

Three years after the adoption or amendment of a resolution or the enactment or amendment of an ordinance by the governing body of a city it is conclusively presumed that the resolution or ordinance was adopted, enacted, or amended and published as required by law.

Source: S.L. 1993, ch. 95, § 2.

40-11-10. Action for violation of ordinance in corporate name — Previous prosecution, recovery, or acquittal no defense.

Any action brought to recover any fine, to enforce any penalty, or to punish any violation of an ordinance of any municipality shall be brought in the corporate name of the municipality as plaintiff. A prosecution, recovery, or acquittal for the violation of any such ordinance may not constitute a defense to any other prosecution of the same person for any other violation of any such ordinance, notwithstanding that the different claims for relief existed at the time of the previous prosecution and if united, would not have exceeded the jurisdiction of the court.

Source: S.L. 1887, ch. 73, art. 4, § 2; R.C. 1895, § 2149; R.C. 1899, § 2149; S.L. 1905, ch. 62, § 50; R.C. 1905, § 2681; C.L. 1913, § 3602; R.C. 1943, § 40-1110; S.L. 1985, ch. 82, § 104.

40-11-11. Summons to issue on violation of ordinance — When warrant of arrest to issue.

In all actions for the violation of an ordinance, the first process shall be a summons, but a warrant for the arrest of the offender shall be issued upon the sworn complaint of any person that an ordinance has been violated and that the person making the complaint has reasonable grounds to believe the person charged is guilty of such violation. Any person arrested under a warrant shall be taken without unnecessary delay before the proper officer to be tried for the alleged offense.

Source: S.L. 1887, ch. 73, art. 4, § 4; R.C. 1895, § 2151; R.C. 1899, § 2151; S.L. 1905, ch. 62, § 52; R.C. 1905, § 2683; C.L. 1913, § 3604; R.C. 1943, § 40-1111.

Notes to Decisions

Special Statute.

This section provides for alternative methods of commencing actions and, being a special statute, it prevails over the general statutes. Kist v. Butts, 71 N.D. 436, 1 N.W.2d 612, 1942 N.D. LEXIS 76 (N.D. 1942).

40-11-12. Commitment of guilty person for nonpayment of fines or costs.

Any person upon whom any fine or costs, or both, has been imposed for violation of a municipal ordinance may, after hearing, be committed upon order of the court to jail or other place provided by the municipality for the incarceration of offenders until the fine or costs, or both, are fully paid or discharged by labor as provided in section 40-18-12. The court may not commit a person under this section when the sole reason for the person’s nonpayment of fines or costs, or both, is the person’s indigency. An order of commitment under this section shall not be for a period in excess of thirty days. As used in this section, “fine” does not include a fee established pursuant to subsection 2 of section 40-05-06.

Source: S.L. 1887, ch. 73, art. 4, § 4; R.C. 1895, § 2151; R.C. 1899, § 2151; S.L. 1905, ch. 62, § 52; R.C. 1905, § 2683; C.L. 1913, § 3604; R.C. 1943, § 40-1112; S.L. 1967, ch. 323, § 123; 1975, ch. 106, § 454.

Cross-References.

Limitations on city fines and penalties, see § 40-05-06.

Notes to Decisions

Commitment Order.

Where a commitment order pursuant to this section constituted revocation of a sentence which had been suspended conditioned upon payment of a fine, the order was appealable under the provisions of N.D.C.C. § 29-28-06. City of Kenmare v. Murray, 404 N.W.2d 513, 1987 N.D. LEXIS 309 (N.D. 1987).

A county court’s review of an order issued under this section would include questions involving a defendant’s failure to meet the conditions of his suspended sentence, issues concerning the possibility that the defendant is indigent, and consideration of any information in mitigation of punishment the defendant may present to the county court. City of Kenmare v. Murray, 404 N.W.2d 513, 1987 N.D. LEXIS 309 (N.D. 1987).

Liability of City.

Where for a number of years, prisoners convicted of violations of city ordinances were accepted by the county jail, the use of the jail by the city was deemed to have been consented to by the county commissioners and the city was deemed to have impliedly contracted to pay for the maintenance of the prisoners. Grand Forks County v. Grand Forks, 123 N.W.2d 42, 1963 N.D. LEXIS 104 (N.D. 1963).

Collateral References.

Right of one governmental subdivision to sue another such subdivision for damages, 11 A.L.R.5th 630.

40-11-13. Fines and forfeitures for violation of ordinances paid into treasury.

All fines, penalties, and forfeitures collected for offenses against the ordinances of a city, including those fines, penalties, and forfeitures collected as a result of a judgment of a district court rendered pursuant to section 40-18-19, must be paid into the city’s treasury at such time and in such manner as may be prescribed by ordinance.

Source: S.L. 1887, ch. 73, art. 4, § 3, art. 10, § 1, art. 18, § 4; 1889, ch. 33, § 5; R.C. 1895, §§ 2150, 2193, 2336; R.C. 1899, §§ 2150, 2193, 2336; S.L. 1905, ch. 62, §§ 51, 90, 190; R.C. 1905, §§ 2682, 2723, 2830; C.L. 1913, §§ 3603, 3647, 3759; R.C. 1943, § 40-1113; S.L. 1981, ch. 412, § 1; 1983, ch. 82, § 78; 1987, ch. 375, § 3; 1993, ch. 326, § 154.

CHAPTER 40-12 Initiative and Referendum

40-12-01. Initiative and referendum apply only in commission and modern council cities.

The provisions of this chapter relative to the initiating and referring of municipal ordinances shall apply only in cities operating under the commission and modern council system of government.

Source: S.L. 1911, ch. 67, §§ 2, 3; 1913, ch. 79, §§ 2, 3; C.L. 1913, §§ 3836, 3837; R.C. 1943, § 40-1201; S.L. 1965, ch. 285, § 11; 1993, ch. 401, § 44.

Notes to Decisions

In General.

Section 40-12-01 et seq. expressly grants the power to city voters to initiate municipal ordinances. The breadth of that power is limited only by procedural requirements that the petition and petitioners must meet. Christianson v. Bismarck, 476 N.W.2d 688, 1991 N.D. LEXIS 175 (N.D. 1991).

Collateral References.

Power of legislative body to amend, repeal, or abrogate initiative or referendum measure, or to enact measure defeated on referendum, 33 A.L.R.2d 1118.

Conclusiveness of declaration in ordinance of an emergency, 35 A.L.R.2d 586.

Adoption of zoning ordinance or amendment thereto through initiative process, 72 A.L.R.3d 991.

Adoption of zoning ordinance or amendment thereto as subject of referendum, 72 A.L.R.3d 1030.

40-12-02. Submission of proposed ordinance by petition — Filed with city auditor — Request in petition.

Any proposed ordinance may be submitted to the governing body of the municipality by a petition signed by qualified electors thereof equal in number to fifteen percent of the votes cast for all candidates for the executive officer at the preceding regular municipal election. The petition must be filed in the city auditor’s office and must contain a request that the ordinance set out in the petition be submitted to a vote of the qualified electors of the city if it is not passed by the governing body of the municipality.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1202; S.L. 1985, ch. 235, § 79.

Notes to Decisions

Construction.

On its face, this section, authorizes “any” ordinance to be submitted to the governing body of the municipality, subject to certain procedural requirements. Christianson v. Bismarck, 476 N.W.2d 688, 1991 N.D. LEXIS 175 (N.D. 1991).

40-12-03. Requirements of petitions for initiative and referendum.

Only qualified electors of the city may sign petitions provided for in this chapter. Each petition, in addition to the names of the petitioners, must contain the name of the street upon, and the number of the house in, which each petitioner resides. It must also be accompanied by the affidavit of one or more qualified electors of the city stating that the signers were qualified electors of the city at the time of signing and the number of signers upon the petition at the time when the affidavit was made.

Source: S.L. 1911, ch. 67, § 4; 1913, ch. 79, § 4; C.L. 1913, § 3838; R.C. 1943, § 40-1203; S.L. 1985, ch. 457, § 1.

Notes to Decisions

Nonconforming Petition.

A petition for recall of a city commissioner was not rendered invalid because the signers failed to add to their signatures their ages and length of residence in the city. State ex rel. Gran v. Bratsberg, 54 N.D. 380, 210 N.W. 4, 1926 N.D. LEXIS 158 (N.D. 1926).

40-12-04. Signatures to petition — Requirements — Oath — Withdrawal.

The signatures to a petition to initiate or refer an ordinance need not all be appended to one paper. One of the signers of each paper shall make an oath before an officer competent to administer oaths that the person believes the statements in the paper to be true and that each signature to the paper is the genuine signature of the person whose name it purports to be. Any petitioner may withdraw that petitioner’s name from a petition within five days after the date of the filing of the petition with the city auditor.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1204.

40-12-05. City auditor to determine sufficiency of initiative petition — Certificate attached to petition.

Within ten days after the filing of a petition to initiate an ordinance, the city auditor shall examine the petition and ascertain from the voters’ register whether or not the petition is signed by the requisite number of qualified electors. The governing body of the municipality shall allow such extra help for the examination of the petition as it deems necessary. The city auditor shall attach to the petition the city auditor’s certificate showing the result of the examination and if the petition is insufficient, the city auditor shall state in the city auditor’s certificate the reasons therefor. If the city auditor’s certificate shows the petition to be insufficient, it may be amended within ten days from the date of the certificate. Within ten days after any such amendment, the city auditor shall make an examination of the amended petition, and if the city auditor’s certificate attached thereto shall show the amended petition to be insufficient, it shall be returned to the person filing the same without prejudice to the filing of a new petition to the same effect. If the petition is sufficient, the city auditor shall submit it to the governing body of the municipality without delay.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1205; S.L. 1985, ch. 235, § 80.

40-12-06. Duty of governing body after receiving petition for proposed ordinance.

After receiving the petition for the initiation of a proposed ordinance, the governing body of the municipality shall:

  1. Pass the ordinance without alteration within twenty days after the attachment of the auditor’s certificate to the accompanying petition;
  2. Call a special election, unless a general city election is fixed within ninety days thereafter, and submit to the vote of the qualified electors of the municipality the initiated ordinance without alteration; or
  3. If the petition is signed by not less than twenty-five percent of the qualified electors as defined in section 40-12-02, pass the ordinance without change within twenty days after the filing of the petition or submit the initiated ordinance at the next general municipal election, if the election occurs not more than thirty days after the city auditor’s certificate of sufficiency is attached to the petition, and if no general municipal election is to be held within thirty days after the city auditor’s certificate of sufficiency is attached to the petition, it shall call a special election.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1206; S.L. 1985, ch. 235, § 81.

Notes to Decisions

City’s Options Limited.

This section limits the options of the city, when it receives a proposed ordinance, to either pass the ordinance or submit it to a vote of the electorate. Christianson v. Bismarck, 476 N.W.2d 688, 1991 N.D. LEXIS 175 (N.D. 1991).

Review Power of Governing Body.

Board of city commissioners has no power to review the determination of city auditor that a petition is signed by a sufficient number of qualified electors. State ex rel. Gran v. Bratsberg, 54 N.D. 380, 210 N.W. 4, 1926 N.D. LEXIS 158 (N.D. 1926).

Time of Vote.

Under subsection (2) of this section, the city is authorized to place the proposed ordinance on the ballot of the next general election if that election occurs within 90 days of the receipt of the city auditor’s certification unless according to section 40-21-02, the next general election is not scheduled until after the 90-day limitation intended by the legislature. Christianson v. Bismarck, 476 N.W.2d 688, 1991 N.D. LEXIS 175 (N.D. 1991).

40-12-07. Adoption of proposed ordinance — Effect — Repeal or amendment of initiated ordinance.

If a majority of the qualified electors voting on an initiated ordinance vote in favor thereof, it shall become a valid and binding ordinance of the municipality. Any ordinance proposed by a petition and adopted by a vote of the people cannot be repealed or amended except by a vote of the people so long as the municipality remains under the commission system of government.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1207.

40-12-08. Petition to refer ordinance — Suspension of ordinance — Requirements of petition.

An ordinance which has been adopted by the governing body of a municipality may be referred to the qualified electors of the municipality by a petition protesting against such ordinance. Such petition shall be signed by qualified electors of the municipality equal to at least ten percent of the entire vote cast for all candidates for executive officer of the municipality at the preceding regular municipal election and shall be presented to the governing body of the municipality within ten days and before four p.m. on the tenth day after the ordinance described in the petition became effective. If a petition is mailed to the governing body of the municipality, it shall be in the possession of such body before four p.m. on the tenth day after the ordinance became effective. Unless the ordinance protested against was passed by a four-fifths vote of the members of the governing body of the municipality for the immediate preservation of the public peace, health, and safety and contains a statement of its urgency, it shall be suspended upon the filing of the petition. The petition provided for in this section shall be in all respects in accordance with the provisions of sections 40-12-02, 40-12-03, and 40-12-04, except as to the number of signers required, and shall be examined and certified by the city auditor in all respects as provided in section 40-12-05.

Source: S.L. 1911, ch. 67, § 3; 1913, ch. 79, § 3; C.L. 1913, § 3837; R.C. 1943, § 40-1208; S.L. 1967, ch. 158, § 97; 1985, ch. 235, § 82.

40-12-09. Referred measure — Submission — Result of election.

When a referendum petition is filed, the governing body of the municipality shall reconsider the ordinance described therein, and if it is not entirely repealed, the governing body shall submit it to the vote of the qualified electors of the municipality at the next regular municipal election or at a special election to be called for that purpose as provided in section 40-12-06. The ordinance shall not go into effect or become operative unless a majority of the qualified electors voting on the same shall vote in favor thereof. If the referred ordinance was not suspended by the filing of the referendum petition, it no longer shall be effective if it is disapproved by a majority vote of the qualified electors voting on the same.

Source: S.L. 1911, ch. 67, § 3; 1913, ch. 79, § 3; C.L. 1913, § 3837; R.C. 1943, § 40-1209; S.L. 1985, ch. 235, § 83.

40-12-10. No limitation on number of ordinances that may be voted on at one election — Limitation on special elections.

Any number of proposed or referred ordinances may be voted on at the same election in accordance with the provisions of this chapter. There shall be not more than one special election in any period of six months for such purposes.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1210.

40-12-11. Publication of proposed or referred ordinance or proposition before election.

The city auditor shall cause any ordinance or proposition to be submitted to the electors under this chapter to be published once in each newspaper published in the municipality. The publication shall be made not more than twenty days nor less than five days before the submission of the ordinance or proposition to a vote.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1211.

40-12-12. Form of ballots to be used in voting on initiated or referred ordinance.

The ballot to be used in voting upon an initiated ordinance shall be in substantially the following form:

Shall an initiated ordinance relating to (stating the nature of the proposed ordinance) be adopted? Yes No

Click to view

The ballot to be used in voting upon a referred ordinance shall be in substantially the following form:

Shall ordinance no. relating to (stating the nature of the proposed ordinance) approved by the board of city commissioners be approved? Yes No

Click to view

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1212.

40-12-13. Propositions submitted for repeal or amendment to initiated or referred ordinance — Election — Vote required.

The governing body of the municipality may submit a proposition for the repeal of or an amendment to an ordinance adopted under the provisions of this chapter. The proposition shall be voted upon at any succeeding regular municipal election. If the proposition submitted receives a majority of the votes cast thereon at such election, the ordinance shall be repealed or amended, as the case may be.

Source: S.L. 1911, ch. 67, § 2; 1913, ch. 79, § 2; C.L. 1913, § 3836; R.C. 1943, § 40-1213.

CHAPTER 40-13 General Provisions Governing Officers in Municipalities

40-13-01. Qualifications of elective and appointive officers.

A person is not eligible to hold an elective municipal office unless that person is a qualified elector of the municipality and has been a resident of the municipality for at least nine months preceding the election. A person is not eligible to hold an appointive office unless that person is a citizen of the United States. A person in default to the municipality is not eligible to any office.

Source: S.L. 1887, ch. 73, art. 5, § 7; R.C. 1895, § 2161; R.C. 1899, § 2161; S.L. 1905, ch. 62, § 62; R.C. 1905, § 2693; S.L. 1907, ch. 45, § 17; 1911, ch. 77, § 17; 1913, ch. 76, § 1; C.L. 1913, §§ 3617, 3787; R.C. 1943, § 40-1301.

Cross-References.

Blanks and records, officer to provide for office, see § 44-04-16.

Commission form cities, see ch. 40-15.

Council form cities, see ch. 40-14.

Defense and indemnity of claim against employee by political subdivision, see § 32-12.1-04.

Deputies, authority, see § 1-01-11.

Examination of records of officers, see § 44-04-15.

Fire chief or executive officers report fire to fire marshal, compensation, see §§ 18-01-06, 18-01-08.

Manager plan cities, see ch. 40-10.

Workers compensation, application to officers and employees, volunteer firemen and civil defense trainees, see §§ 65-01-02, 65-06-02.

Notes to Decisions

Residency Requirement.

Although mayor of Medora had purchased a home in Bismarck, his children attended Bismarck schools, and he was absent from Medora much of the time, he satisfied the residency requirement of this section to be mayor of Medora where there was other evidence to establish that he maintained an actual and legal residence in Medora. Dietz v. Medora, 333 N.W.2d 702, 1983 N.D. LEXIS 266 (N.D. 1983).

Collateral References.

Taxpayer’s capacity to maintain suit to enjoin submission of initiative, referendum, or recall measure to voters, 6 A.L.R.2d 557.

Injunctive relief against submission of constitutional amendment, statute, municipal charter, or municipal ordinance, on ground that proposed action would be unconstitutional, 19 A.L.R.2d 519.

Validity of requirement that candidate or public officer have been resident of governmental unit for specified period, 65 A.L.R.3d 1048.

Construction and Application of Statutes and Ordinances Concerning Establishment of Residency, as Condition for Running for Municipal Office. 74 A.L.R.6th 209.

40-13-02. Bonds of city officials — Requirements — Approvals — Additional bonds.

The auditor, municipal judge, assessor, and the city manager of any city, and such other officers as the governing body may direct, before entering upon the discharge of the duties of their respective offices, shall execute and deliver to the city their separate bonds payable to the city, conditioned for the honest and faithful performance of their official duties. The bond must be in an amount fixed by the governing body of the city. The bond of the auditor must be set by resolution of the governing body of the city at a regular meeting in June of each year in an amount at least equal to twenty-five percent of the average amount of money that has been subject to the auditor’s control during the preceding fiscal year, as determined by the total of the daily balances of the auditor for the calendar year divided by the figure three hundred or the sum of two hundred fifty thousand dollars whichever is least. All official bonds must be approved by the executive officer of the city and filed in the office of the city auditor. The bonds must conform to the law applicable to the bonds of state officers and employees except that no personal surety may be accepted on any bond. A city may not pay the premium on any bond except a bond written in the state bonding fund or a bond procured to replace a bond canceled by the state bonding fund. The governing body at any time may require new and additional bonds of any officer.

Source: Pol. C. 1877, ch. 24, § 28; S.L. 1887, ch. 73, art. 5, §§ 5, 12; 1893, ch. 35, § 1; R.C. 1895, §§ 2159, 2166, 2371; R.C. 1899, §§ 2159, 2166, 2371; S.L. 1901, ch. 42, §§ 1, 2; 1905, ch. 62, §§ 60, 67; R.C. 1905, §§ 2691, 2698, 2715, 2716, 2870; S.L. 1907, ch. 45, § 37; 1911, ch. 77, § 37; C.L. 1913, §§ 3615, 3622, 3639, 3640, 3807, 3869; S.L. 1915, ch. 72, § 1; 1925 Supp., § 3807; S.L. 1933, ch. 171, §§ 1 to 3; R.C. 1943, § 40-1302; S.L. 1945, ch. 254, § 1; 1957, ch. 279, § 1; 1957 Supp., § 40-1302; S.L. 1967, ch. 323, § 124; 1981, ch. 320, § 95; 1991, ch. 442, § 10.

Cross-References.

Official bonds, see §§ 44-01-11, 44-01-12, and ch. 26.1-21.

Collateral References.

Public officer’s bond as subject to forfeiture for malfeasance in office, 4 A.L.R.2d 1348.

Personal liability on bond of policeman, sheriff, or other peace officer, for negligently causing personal injury or death, 60 A.L.R.2d 873.

40-13-03. Oaths of municipal officers.

Every person elected or appointed to any municipal office, before the person enters upon the discharge of the duties thereof, shall take and subscribe the oath of office prescribed for civil officers, and, except in the case of the auditor, shall file the same with the city auditor within ten days after notice of the election or appointment has been given. The oath of the city auditor shall be filed in the office of the auditor of the county in which the municipality is located. Refusal to take the oath of office, as required by this section, shall also be deemed a refusal to serve and, therefore, a failure to qualify for the office pursuant to section 44-02-01.

Source: Pol. C. 1877, ch. 24, § 19; S.L. 1887, ch. 73, art. 5, § 5; R.C. 1895, §§ 2159, 2362; R.C. 1899, §§ 2159, 2362; S.L. 1905, ch. 62, § 60; R.C. 1905, §§ 2691, 2861; S.L. 1907, ch. 45, § 36; 1911, ch. 77, § 36; C.L. 1913, §§ 3615, 3806, 3858; S.L. 1933, ch. 171, § 2; R.C. 1943, § 40-1303; S.L. 1967, ch. 323, § 125; 1999, ch. 208, § 5.

Cross-References.

Oath of civil officers, see § 44-01-05.

40-13-04. Salaries of officers and employees fixed by ordinance — Diminution of officers’ salaries during term prohibited.

Except when otherwise provided by law, any officer or employee of a city is entitled to receive the salary, fees, or other compensation fixed by ordinance or resolution. After having been once fixed, the salary of an officer may not be diminished to take effect during the term for which the officer was elected or appointed.

Source: Pol. C. 1877, ch. 24, § 44; S.L. 1887, ch. 73, art. 5, § 12; 1893, ch. 35, § 1; R.C. 1895, §§ 2166, 2391; R.C. 1899, §§ 2166, 2391; S.L. 1905, ch. 62, § 67; R.C. 1905, §§ 2698, 2890; S.L. 1907, ch. 45, § 32; 1911, ch. 77, § 32; C.L. 1913, §§ 3622, 3802, 3895; S.L. 1943, ch. 182, § 2; R.C. 1943, § 40-1304; S.L. 1995, ch. 387, § 1.

DECISIONS UNDER PRIOR LAW

Acceptance of Lower Salary.

The acceptance by a marshal of less than his legal salary on bills rendered by him amounts to an adjudication of his claim. O'Hara v. Park River, 1 N.D. 279, 47 N.W. 380, 1890 N.D. LEXIS 36 (N.D. 1890).

40-13-05. Officers not to be interested in contracts or work of municipality — Exception.

Except as otherwise provided by law, no municipal officer, in a municipality having a population of ten thousand or more according to the last federal decennial census, shall be directly or indirectly interested in:

  1. Any contract, work, or business of the municipality;
  2. The sale of any article the expense, price, or consideration of which is paid from the municipal treasury or by any assessment levied by any act or ordinance; or
  3. The purchase of any real estate or other property belonging to the municipality or which shall be sold for taxes or assessments or by virtue of any process issued in any suit brought by the municipality.

Provided, however, that the foregoing shall not be applicable if unanimously approved by the other members of the governing body of the political subdivision by a finding unanimously adopted by such other members and entered in the official minutes of the governing body, to be necessary for the reason that the services or property obtained are not otherwise available at equal cost.

Source: S.L. 1887, ch. 73, art. 5, § 8; R.C. 1895, § 2162; R.C. 1899, § 2162; S.L. 1905, ch. 62, § 63; R.C. 1905, § 2694; C.L. 1913, § 3618; R.C. 1943, § 40-1305; S.L. 1957, ch. 277, § 3; 1957 Supp., § 40-1305; S.L. 1959, ch. 323, § 3; 1973, ch. 325, § 1.

Cross-References.

Interest of public officer in public contract prohibited, see § 48-02-12.

Preference given to North Dakota bidders and sellers, see N.D.C.C. § 44-08-01.

DECISIONS UNDER PRIOR LAW

Effect of Violation.

A violation of a statute providing that no member of the city council should be interested in a city contract would not defeat a tax levied for the purpose of making payments under contract with city. Roberts v. First Nat'l Bank, 8 N.D. 504, 79 N.W. 1049, 1899 N.D. LEXIS 40 (N.D. 1899).

A contract for the purchase of land which the purchaser was induced to enter into by the promise of the vendor, who was mayor of the city in which the land was situated, that the city would buy gravel thereon for use for city improvements, was void. Emanuel v. Engst, 54 N.D. 141, 208 N.W. 840, 1925 N.D. LEXIS 162 (N.D. 1925).

40-13-05.1. Municipal officers — Contracts — Disclosure required — Penalty.

A municipal officer may not refuse or fail to disclose to the governing board of which that person is a member any personal interest, direct or indirect, in any contract requiring the expenditure of municipal funds. Any person who violates this section is guilty of an infraction and is, in addition, subject to removal from office.

Source: S.L. 1977, ch. 377, §§ 1, 2.

40-13-06. Penalty for illegal interest in contract of municipality — Contract void. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

40-13-07. Office deemed vacant on removal from municipality or failure to qualify.

When any officer removes from a municipality or refuses or neglects for ten days after official notification of that person’s appointment to qualify and enter upon the discharge of the duties of the office, the office shall be deemed vacant.

Source: S.L. 1887, ch. 73, art. 2, § 5, art. 13, § 11; R.C. 1895, §§ 2119, 2260; R.C. 1899, §§ 2119, 2260; S.L. 1905, ch. 62, §§ 16, 118; R.C. 1905, §§ 2647, 2751; S.L. 1907, ch. 45, §§ 33, 36; 1911, ch. 77, §§ 33, 36; C.L. 1913, §§ 3568, 3675, 3803, 3806; S.L. 1935, ch. 193, § 1; R.C. 1943, § 40-1307.

40-13-08. Vacancy existing in appointive office — How filled.

Whenever a vacancy occurs in an appointive office, the same proceedings shall be had to fill such vacancy as are provided for in case of an appointment in the first instance.

Source: S.L. 1907, ch. 45, § 33; 1911, ch. 77, § 33; C.L. 1913, § 3803; S.L. 1935, ch. 193, § 1; R.C. 1943, § 40-1308.

40-13-09. Vacancies to be filled for unexpired term.

Unless otherwise specifically provided in this title, every person elected or appointed to fill a vacancy in a municipal office shall hold the office and discharge the duties thereof for the unexpired term.

Source: S.L. 1907, ch. 45, § 35; 1911, ch. 77, § 35; C.L. 1913, § 3805; R.C. 1943, § 40-1309.

40-13-10. Delivery of property, books, and other effects to successor in office.

Within five days after notification and request, any officer of a municipality whose term has expired shall deliver to the person’s successor in office all property, books, and effects of every description in the person’s possession belonging to the municipality or pertaining to the person’s office. Upon the person’s refusal to deliver such property, books, and other effects, the person shall be liable for all damages caused thereby and subject to a penalty prescribed by ordinance.

Source: Pol. C. 1877, ch. 24, § 29; S.L. 1887, ch. 73, art. 5, § 6; R.C. 1895, §§ 2160, 2372; R.C. 1899, §§ 2160, 2372; S.L. 1905, ch. 62, § 61; R.C. 1905, §§ 2692, 2871; C.L. 1913, §§ 3616, 3870; R.C. 1943, § 40-1310.

40-13-11. Additional duties, powers, and privileges of officers may be defined by ordinance.

The duties, powers, and privileges of all officers of every character in any way connected with a municipal government, not defined in this title, shall be defined by the governing body. The definition by this title of the duties of municipal officers shall not preclude the governing body from defining by ordinance further and additional duties to be performed by any such officer.

Source: S.L. 1905, ch. 62, § 49; R.C. 1905, § 2680; S.L. 1907, ch. 45, § 45; 1911, ch. 77, § 45; C.L. 1913, §§ 3601, 3815; R.C. 1943, § 40-1311.

40-13-12. Municipal officers liable to criminal prosecution — Fine — Removal from office. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

40-13-13. Nepotism by city officials restricted.

The head of an executive or administrative department of a city may not appoint that individual’s spouse, son, daughter, brother, or sister to any position under the control or direction of that individual, unless the appointment has previously been approved by the governing body of the city.

Source: S.L. 2005, ch. 347, § 1.

CHAPTER 40-14 Officers in Council Cities, General

40-14-01. Officers to be elected in council cities.

The following officers must be elected in each city operating under the council form of government:

  1. A mayor.
  2. The council members required under sections 40-08-03 and 40-08-04.

Each city operating under the council form of government may choose to have a municipal judge who is elected.

Source: S.L. 1887, ch. 73, art. 5, § 1; 1889, ch. 33, § 3; R.C. 1895, § 2154; S.L. 1897, ch. 40, § 3; R.C. 1899, § 2154; S.L. 1905, ch. 62, § 55; R.C. 1905, § 2686; C.L. 1913, § 3610; S.L. 1943, ch. 183, § 1; R.C. 1943, § 40-1401; S.L. 1959, ch. 268, § 13; 1965, ch. 286, § 20; 1973, ch. 320, § 4; 1981, ch. 413, § 1; 1991, ch. 440, § 15.

Cross-References.

City board of equalization, see ch. 57-11.

Municipal judges, see ch. 40-18.

40-14-02. Terms of elective officers.

The terms of office of the mayor and council members are provided in chapter 40-08. All other elective officers in a city operating under the council form of government shall hold their respective offices for four years and until their successors are elected and qualified.

Source: S.L. 1887, ch. 73, art. 5, § 2; R.C. 1895, § 2155; R.C. 1899, § 2155; S.L. 1905, ch. 62, § 56; R.C. 1905, § 2687; C.L. 1913, § 3611; S.L. 1931, ch. 203, § 1; R.C. 1943, § 40-1402; S.L. 1969, ch. 373, § 1; 1991, ch. 440, § 16.

40-14-03. When term of elective officer begins.

Under the city council form of government, the term of each elective officer commences on the fourth Tuesday of June of the year in which the officer is elected.

Source: S.L. 1887, ch. 73, art. 13, § 10; R.C. 1895, § 2259; R.C. 1899, § 2259; S.L. 1905, ch. 62, § 117; R.C. 1905, § 2750; C.L. 1913, § 3674; R.C. 1943, § 40-1403; S.L. 1991, ch. 442, § 11.

40-14-04. Appointive officers in council cities — Appointment of more than one assessor.

  1. The mayor, with the approval of the city council, shall appoint the following officers:
    1. A city auditor;
    2. A city assessor;
    3. A city attorney;
    4. A city engineer; and
    5. Such other officers as the city council deems necessary and expedient.
  2. The city assessor shall be appointed at the first meeting of the city council in September of each odd-numbered year. If the city council of a city containing five thousand or more inhabitants shall declare, by resolution, that it is necessary to appoint more than one assessor, the mayor, with the approval of the council, may appoint one or two additional city assessors.
  3. The city council, including a city council under the modern council form of government, by a majority vote may dispense with any appointive office and provide that the duties of that office be performed by other officers.

Source: S.L. 1887, ch. 73, art. 5, § 3, art. 9, § 2; 1889, ch. 28, § 1; 1893, ch. 33, § 1; R.C. 1895, §§ 2156, 2157, 2185; R.C. 1899, §§ 2156, 2157, 2185; S.L. 1905, ch. 62, §§ 57, 58, 85; R.C. 1905, §§ 2688, 2689, 2718; C.L. 1913, §§ 3612, 3613, 3642; R.C. 1943, § 40-1404; S.L. 1993, ch. 401, § 45.

Notes to Decisions

Appointment of Assistant Attorneys.

The mayor and council may appoint attorneys to assist the city attorney, and are not required to select assistants from among resident lawyers. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

40-14-05. Term of appointive officers.

The term of all appointive officers of a city operating under the council form of government commences on the first day of July succeeding their appointment unless otherwise provided by ordinance, and the officers shall hold their respective offices for two years, and until their successors are appointed and qualified.

Source: S.L. 1887, ch. 73, art. 5, § 4; R.C. 1895, § 2158; R.C. 1899, § 2158; S.L. 1905, ch. 62, § 59; R.C. 1905, § 2690; C.L. 1913, § 3614; R.C. 1943, § 40-1405; S.L. 1991, ch. 442, § 12.

Notes to Decisions

Right to Payment of Salary.

A city assessor, in the absence of waiver or estoppel, could recover salary from the city from the period of his wrongful dismissal, although the salary for such period had been paid to a de facto officer. Ness v. Fargo, 64 N.D. 231, 251 N.W. 843, 1933 N.D. LEXIS 269 (N.D. 1933).

40-14-06. Officers commissioned by warrant — City auditor to receive certificate of appointment.

All officers elected or appointed, except the city auditor, council members, and mayor, must be commissioned by warrant signed by the auditor and the mayor or president of the city council. The mayor shall issue a certificate of appointment to the auditor.

Source: S.L. 1887, ch. 73, art. 5, § 6; R.C. 1895, § 2160; R.C. 1899, § 2160; S.L. 1905, ch. 62, § 61; R.C. 1905, § 2692; C.L. 1913, § 3616; R.C. 1943, § 40-1406; S.L. 1973, ch. 80, § 12; 1991, ch. 440, § 17.

40-14-07. Holding of other offices by city auditor prohibited. [Repealed]

Repealed by S.L. 1975, ch. 372, § 1.

CHAPTER 40-15 Officers in Commission Cities, General

40-15-01. Officers to be elected in commission cities.

The following officers shall be elected in each city operating under the commission system of government:

  1. A president of the board of city commissioners.
  2. Four city commissioners.

Each city operating under the commission system of government may choose to have a municipal judge who shall be elected.

Source: S.L. 1907, ch. 45, § 13; 1911, ch. 77, § 13; C.L. 1913, § 3783; R.C. 1943, § 40-1501; S.L. 1959, ch. 268, § 12; 1965, ch. 286, § 19; 1981, ch. 413, § 2.

Cross-References.

City board of equalization, see ch. 57-11.

Municipal judges, see ch. 40-18.

40-15-02. Terms of elective officers.

The terms of office of the president of the board of city commissioners and of each commissioner shall be as provided in chapter 40-09. The municipal judge shall hold office for four years and until the judge’s successor is elected and qualified.

Source: S.L. 1887, ch. 73, art. 5, § 2; R.C. 1895, § 2155; R.C. 1899, § 2155; S.L. 1905, ch. 62, § 56; R.C. 1905, § 2687; S.L. 1907, ch. 45, § 18; 1911, ch. 77, § 18; C.L. 1913, §§ 3611, 3788; S.L. 1931, ch. 203, § 1; R.C. 1943, § 40-1502; S.L. 1965, ch. 286, § 18.

40-15-03. When term of elective officers begins.

The term of each elective officer in a city operating under the commission system of government commences on the fourth Tuesday in June of the year in which the officer is elected.

Source: S.L. 1907, ch. 45, § 18; 1911, ch. 77, § 18; C.L. 1913, § 3788; R.C. 1943, § 40-1503; S.L. 1991, ch. 442, § 13.

40-15-04. Extension of terms of officers in commission cities elected to terms expiring in 1943 and 1945. [Repealed]

Repealed by omission from this code.

40-15-05. Appointive officers in commission cities — Right to dispense with offices.

At the first meeting after the qualification of its members, or as soon thereafter as possible, the board of city commissioners shall appoint the following officers:

  1. A treasurer;
  2. An auditor;
  3. An attorney;
  4. One or more assessors;
  5. A city health officer who shall be a physician;
  6. A street commissioner;
  7. A chief of the fire department;
  8. A chief of police;
  9. One or more police officers;
  10. A city engineer;
  11. A board of public works; and
  12. Such other officers or boards as the board of city commissioners may deem necessary.

The board of city commissioners by a majority vote may dispense with any appointive office and provide that the duties thereof shall be performed by other officers or boards, by the board of city commissioners, or by a committee or committees thereof.

Source: S.L. 1907, ch. 45, §§ 13, 31; 1911, ch. 77, §§ 13, 31; C.L. 1913, §§ 3783, 3801; R.C. 1943, § 40-1505.

40-15-06. Term of appointive officers.

The terms of all appointive officers of a city operating under the commission system of government commences on the first day of July succeeding their appointment unless otherwise provided by ordinance, and the officers shall hold their respective offices for the term provided by ordinance, and until their respective successors are qualified.

Source: S.L. 1907, ch. 45, § 18; 1911, ch. 77, § 18; C.L. 1913, § 3788; R.C. 1943, § 40-1506; S.L. 1991, ch. 442, § 14.

40-15-07. Appointive officers — Removal upon hearing — Suspension — Appointment and removal of temporary officer.

Any person appointed to any office of a city operating under the commission system of government and any employee of the city may be removed by a majority vote of all the members of the board of city commissioners, but no officer or employee shall be removed except for cause and unless charges are preferred against the person and the person is accorded an opportunity to be heard in the person’s own defense. Within ten days after charges are filed against any such person in the office of the city auditor, the board shall proceed to hear and determine the case upon its merits. The president of the board of city commissioners, or the board, by a majority vote of its members, may suspend any officer or employee against whom charges have been preferred until the disposition of the charges. The president may appoint a person to fill any vacancy temporarily until charges against the incumbent of such office have been disposed of. Any person appointed by the president without confirmation may be removed by the president when the president deems it is for the best interests of the city.

Source: S.L. 1907, ch. 45, §§ 21, 23, 38; 1911, ch. 77, §§ 21, 23, 38; 1913, ch. 80, § 2; C.L. 1913, §§ 3791, 3793, 3808; R.C. 1943, § 40-1507.

Notes to Decisions

Abandonment of Office.

Where, after removal, a policeman, in effect, abandons his office he is not entitled to a writ of mandamus to compel reinstatement and the payment of compensation. Dawes v. Grand Forks, 62 N.D. 67, 243 N.W. 802, 1931 N.D. LEXIS 234 (N.D. 1931).

Appeal.

The institution of second proceedings by a board of city commissioners to remove a city assessor after the district court declared the first proceedings null and void on certiorari does not deprive the commissioners of the right to have the validity of the first removal proceedings determined on appeal to the supreme court. State ex rel. Ness v. Board of City Comm'rs, 63 N.D. 33, 245 N.W. 887, 1932 N.D. LEXIS 134 (N.D. 1932).

Where a city official has been removed by the board of city commissioners, the only question that can be considered on certiorari is the question of the board’s jurisdiction. State ex rel. Ness v. Board of Comm'rs, 63 N.D. 85, 246 N.W. 243, 1932 N.D. LEXIS 139 (N.D. 1932).

Due Process.

In a hearing for dismissal of a city superintendent and building inspector, there was no evidence to support allegations that the city commissioner who signed the statement of charges, and another commissioner who had recommended dismissal some years earlier, were so prejudiced against the superintendent as to violate due process, where there was no showing of pecuniary benefit or personal animosity. Mattheis v. Hazen, 421 N.W.2d 476, 1988 N.D. LEXIS 84 (N.D. 1988).

Oath of Commissioners.

The commissioners may act at the hearing without taking an oath to try the case fairly since they have a duty to act in such hearings and their oath of office is sufficient. State ex rel. Ness v. Board of Comm'rs, 63 N.D. 85, 246 N.W. 243, 1932 N.D. LEXIS 139 (N.D. 1932).

Procedures.

Where a city superintendent was served with a notice of hearing which incorporated a statement of charges, and a hearing was held upon the merits of the case within ten days after charges were filed, and the city commission gave him an opportunity to be heard in his own defense, and he was removed from his duties for cause by a majority vote of all the members of the city commission, the removal procedures of this section were followed by the city commission. Mattheis v. Hazen, 421 N.W.2d 476, 1988 N.D. LEXIS 84 (N.D. 1988).

Removal Proceedings Are Quasi-Judicial.

Proceedings before the board of city commissioners for the removal of a city official are quasi-judicial and require every essential element of a fair trial. State ex rel. Ness v. Board of City Comm'rs, 63 N.D. 33, 245 N.W. 887, 1932 N.D. LEXIS 134 (N.D. 1932).

CHAPTER 40-16 City Auditor

40-16-01. Office of city auditor — Location — Salary.

Each city auditor of each city shall keep the city auditor’s office at the meeting place of the governing body or at such place as designated by the governing body. The city auditor’s salary shall be fixed by the city governing body and the city auditor shall receive no fees or per diem in addition thereto.

Source: S.L. 1887, ch. 73, art. 6, § 1; R.C. 1895, § 2168; R.C. 1899, § 2168; S.L. 1905, ch. 62, § 69; R.C. 1905, § 2700; C.L. 1913, § 3624; R.C. 1943, § 40-1601; S.L. 1973, ch. 320, § 6.

40-16-02. Deputy auditor — Appointment — Duties — Liability.

The city auditor, with the consent and approval of the governing body of the city, may appoint a deputy and file such appointment in the city auditor’s office. The deputy, if one is appointed, shall aid in the performance of the duties of the office under the auditor’s direction and in the absence or disability of the auditor, or if there is a vacancy in the office of the auditor, the deputy shall perform the duties of the auditor. The auditor and the surety on the auditor’s official bond shall be liable for the acts of the deputy.

Source: S.L. 1907, ch. 45, § 39; 1911, ch. 77, § 39; C.L. 1913, § 3809; R.C. 1943, § 40-1602.

40-16-03. Duties of city auditor in general.

It shall be the duty of each city auditor:

  1. Meetings. To attend all meetings of the governing body and keep a complete record of its proceedings. The official proceedings are to be signed by the auditor when they are prepared and by the executive officer upon board approval at a subsequent meeting.
  2. Records. To keep all papers and records of the city.
  3. Records. To maintain a complete record of all financial transactions of the city which includes receipts, disbursements, fund balances, and other assets, liabilities, and equity.
  4. Bonds and evidences of indebtedness. To examine and countersign all bonds, orders, or other evidences of indebtedness of the city before the same become valid.
  5. Books of account. To keep regular books of account in which the city auditor shall enter all indebtedness of the city and which at all times shall show the financial condition of the city, the amount of bonds, orders, certificates, or other evidences of indebtedness issued by the governing body, the amount of all bonds, orders, certificates, or other evidences of indebtedness which have been redeemed, and the amount of each outstanding.
  6. List of bonds, orders, and other evidences of indebtedness. To make and keep a list of outstanding city bonds, orders, certificates, or other evidences of indebtedness showing to whom and for what purpose the same were issued, when and where each is payable, the rate of interest each bears, and to recommend such action to the governing body as will secure the punctual payment of the principal and interest of such bonds or other indebtedness.
  7. Countersign contracts. To countersign all contracts made in behalf of the city if the necessary funds have been provided to pay the liability incurred thereunder, to countersign certificates of work authorized by any committee of the governing body, or by any city officer. Each contract made in behalf of a city or to which a city is a party shall be void unless countersigned by the auditor.
  8. Present communications. To present to the governing body for its consideration at its next meeting all communications, claims, and other matters filed in the city auditor’s office.
  9. Ordinances and official bonds. To record all ordinances adopted and licenses granted by the city and all official bonds of city officers in books kept for that purpose which shall be open to public inspection at reasonable times.
  10. Work certificates. To keep a list of all certificates issued by the city for work or any other purpose.
  11. Accounts with officers. To keep accounts with all receiving and disbursing officers of the city showing the amount they have received from the different sources of revenue, and the amount which they have disbursed under the direction of the governing body.
  12. Record of official acts. To keep a record of the city auditor’s official acts and doings and to enter all contracts in an indexed book which shall be open to the inspection of the public.
  13. Special assessment lists. To make a list of all certificates for the payment of which special taxes are to be levied in each year in time for the same to be inserted in the tax roll in the form of a schedule of special taxes and to certify to the correctness thereof. The certified schedule shall be prima facie evidence of the legality and regularity of the taxes levied in pursuance thereof, but no irregularity in the making of such lists shall invalidate any such special tax.
  14. Receipts. To issue prenumbered duplicate receipts for all moneys paid into the city treasury from whatever source received specifying the date and amount of such payment and upon what account such money is paid. Such receipts shall be recorded numerically in the record of receipts.
  15. Disbursements. Submit all claims against the city to the governing body for approval. Upon approval, the auditor shall draw and countersign, along with the executive officer, a warrant in payment of the claim. No warrant shall be delivered or mailed until such warrant has been recorded in the disbursement record. Approval of all claims shall be recorded in the official proceedings of the governing body showing the warrant number, payee, and amount, except that salaries and wages may be consolidated in one order, and this shall be sufficient to indicate approval without requiring a majority of the members of the governing body to sign or initial the voucher or order for payment.
  16. Monthly reconcilement. To reconcile monthly the bank statements listing all deposits in transit and outstanding checks.
  17. Additional duties. To perform, from time to time, such duties not required specifically by the provisions of this chapter as the governing body may direct.
  18. Training. For an individual who is appointed to the position of city auditor, to complete, within one year of assuming office, training based on a curriculum specific to that office and approved by a statewide association representing cities.

Source: S.L. 1887, ch. 73, art. 6, §§ 1, 2, 3; R.C. 1895, §§ 2168 to 2170; R.C. 1899, §§ 2168 to 2170; S.L. 1905, ch. 62, §§ 69 to 71; R.C. 1905, §§ 2700 to 2702; S.L. 1907, ch. 45, §§ 39, 42; 1911, ch. 77, §§ 39, 42; C.L. 1913, §§ 3624 to 3626, 3809, 3812; S.L. 1927, ch. 181, §§ 1, 2; 1927, ch. 191, § 1; R.C. 1943, § 40-1603; S.L. 1973, ch. 80, § 13; 1973, ch. 320, § 7; 1975, ch. 366, § 6; 2001, ch. 122, § 5; 2017, ch. 279, § 1, effective January 1, 2018.

Cross-References.

Assessment list changes necessitated by changes in wards, duty to make, see § 40-52-06.

Cash book and register to be footed daily and closed annually, see § 21-01-09.

Depositories of public funds, see ch. 21-04.

Duties as clerk of city board of equalization, see § 57-11-02.

Duties as park district treasurer, see § 40-49-08.

Gravel assessment book, duty to keep, see § 40-54-07.

Issuance of registered warrants, see ch. 21-01.

Notes to Decisions

Claims Against City.

The city auditor is the official representative of the city council for the purpose of receiving claims against the city, including claims for personal injuries. Pyke v. Jamestown, 15 N.D. 157, 107 N.W. 359 (1906), decided prior to the amendment of N.D.C.C. § 40-42-04. City of Grand Forks v. Allman, 153 F. 532, 1907 U.S. App. LEXIS 4428 (8th Cir. N.D. 1907).

Election Duties.

It is the duty of the city auditor to furnish ballots and election supplies for the conduct of an election of city commissioners. State ex rel. Shaw v. Thompson, 21 N.D. 426, 131 N.W. 231, 1911 N.D. LEXIS 102 (N.D. 1911).

40-16-04. Reports of city auditor.

The city auditor of each city shall prepare and submit to the governing body of the city reports as follows:

  1. Monthly financial statement. A monthly financial statement shall be prepared showing the revenues, expenditures, transfers, and fund balances.
  2. Annual financial statement. An annual financial statement shall be prepared, on or before March first, showing the revenues, expenditures, transfers, and fund balances of the city for the year ended December thirty-first. This financial statement shall be retained in the office of the city auditor as a permanent public record.

Source: S.L. 1887, ch. 73, art. 6, § 2; R.C. 1895, § 2169; R.C. 1899, § 2169; S.L. 1905, ch. 62, § 70; R.C. 1905, § 2701; S.L. 1907, ch. 45, §§ 25, 42; 1911, ch. 77, §§ 25, 42; C.L. 1913, §§ 3625, 3795, 3812; S.L. 1927, ch. 181, § 1; 1927, ch. 191, § 1; 1927, ch. 192, § 1; R.C. 1943, § 40-1604; S.L. 1983, ch. 457, § 1; 2003, ch. 344, § 1.

40-16-05. Auditor to publish statement.

Within sixty days after the close of each fiscal year, the auditor of each city shall make and cause to be published in the official city newspaper a financial statement of the city showing the receipts and disbursements on account of each fund during the last preceding year.

Source: S.L. 1907, ch. 45, § 39; 1911, ch. 77, § 39; C.L. 1913, § 3809; R.C. 1943, § 40-1605; S.L. 2003, ch. 344, § 2.

Cross-References.

Official newspaper of municipality, see § 40-01-09.

40-16-06. Claims and demands against city filed with auditor — Duty of auditor.

All claims and demands against a city, whether founded on contract or otherwise, and to be paid from any fund, including a municipal utilities fund, shall be filed with the city auditor. The city auditor shall examine each claim filed and determine whether or not it is properly itemized and certified in the form prescribed in section 54-14-04. If a claim is filed on a contract, the city auditor shall determine whether or not the items charged are correct and were incurred by proper authority. The auditor shall endorse the auditor’s approval upon any claim that the auditor finds to be correct. If the city auditor disapproves any claim in whole or in part, the auditor shall report the auditor’s reasons therefor to the governing body. The city auditor shall report all evidence taken by the auditor in connection with any claim. No claim shall be considered by the governing body until it shall have been examined and reported upon by the auditor and audited and adjusted by the proper committee or member of the governing body.

Source: S.L. 1887, ch. 73, art. 6, § 3; R.C. 1895, § 2170; R.C. 1899, § 2170; S.L. 1905, ch. 62, § 71; R.C. 1905, § 2702; S.L. 1907, ch. 45, § 42; 1911, ch. 77, § 42; C.L. 1913, §§ 3626, 3812; S.L. 1927, ch. 181, § 2; 1927, ch. 191, § 1; R.C. 1943, § 40-1606; S.L. 1949, ch. 256, § 2; 1957 Supp., § 40-1606.

40-16-07. Auditor may take testimony.

A city auditor may administer oaths and affirmations to witness and take testimony in connection with any of the duties imposed upon the city auditor by the laws of this state.

Source: S.L. 1907, ch. 45, § 39; 1911, ch. 77, § 39; C.L. 1913, § 3809; R.C. 1943, § 40-1607.

40-16-08. Auditor a member of board of public works in commission city.

The city auditor in a city operating under the commission system of government shall be ex officio secretary of the board of public works and shall perform the duties of a member of such board.

Source: S.L. 1907, ch. 45, §§ 39, 42; 1911, ch. 77, §§ 39, 42; C.L. 1913, §§ 3809, 3812; S.L. 1927, ch. 191, § 1; R.C. 1943, § 40-1608.

40-16-09. Copies of books, records, and transcripts of records of city auditor as evidence.

Copies of any and all books, papers, documents, or instruments duly filed and kept in the office of a city auditor and transcripts from the records of the proceedings of the governing body of a city certified by the city auditor shall be evidence in all courts and places in like manner and with the same force and effect as if the originals were produced.

Source: S.L. 1887, ch. 73, art. 6, § 1; R.C. 1895, § 2168; R.C. 1899, § 2168; S.L. 1905, ch. 62, § 69; R.C. 1905, § 2700; S.L. 1907, ch. 45, § 39; 1911, ch. 77, § 39; C.L. 1913, §§ 3624, 3809; R.C. 1943, § 40-1609; S.L. 1973, ch. 80, § 14.

Cross-References.

Changes in records necessitated by changes in wards, see § 40-52-05.

40-16-10. Destruction of city records. [Repealed]

Repealed by S.L. 1981, ch. 276, § 3.

40-16-11. Funds — Controlled by governing body — Exceptions — Disbursement on order.

All funds in the city treasury, except school funds, funds created and set apart for the payment of interest and principal of the debt of the city, and funds collected on special assessments, shall be under the control of the governing body of the city and shall be drawn out when authorized by a vote of the governing body, upon the order of the executive officer countersigned by the city auditor.

Source: S.L. 1973, ch. 320, § 9.

40-16-12. Special funds not to be paid out for any other purpose.

The city auditor shall pay out funds appropriated for special purposes only for the purposes for which they were appropriated even though the governing body directs to the contrary.

Source: S.L. 1973, ch. 320, § 10.

40-16-13. Warrants — Cancellation — Destruction — Description in minutes.

The governing body, at a regular meeting, may cancel and destroy all warrants drawn on any fund of the city which have remained on file for a period of one year or more next preceding the regular meeting at which the cancellation takes place. The governing body may cancel and destroy all warrants and checks which have been subject to payment and which have not been presented for payment for a period of one year or more next preceding such regular meeting. The governing body, before canceling and destroying any such warrants or checks, shall cause to be entered in the minutes of its proceedings a brief description of the warrant or check, containing the name of the payee, and the number, date, and amount of each warrant or check to be canceled and destroyed. If the party entitled to any such warrant or check, or to payment thereon, shall appear thereafter and give good and sufficient reason for that party’s delay in calling for such warrant or check or in presenting the same for payment, the governing body may issue to that person a new warrant or check in the amount to which that person is entitled, except for the statute of limitations.

Source: S.L. 1973, ch. 320, § 11.

40-16-14. Auditor not to commingle city’s money — Violation forfeits office.

The city auditor shall keep the city’s money separate from other moneys, and shall not, either directly or indirectly, use the city’s money, warrants, or other obligations in the auditor’s custody and keep it for the auditor’s own use and benefit or for that of any other person or persons. If the auditor is convicted of a violation of this section, the city auditor’s office shall be forfeited and shall become vacant.

Source: S.L. 1973, ch. 320, § 12.

40-16-15. Assume the duties of the city treasurer.

The city auditor shall assume all functions and duties of the city treasurer when indicated in other chapters of the code.

Source: S.L. 1973, ch. 320, § 13.

Cross-References.

Warrant register, by whom kept, form, see § 21-01-07.

DECISIONS UNDER PRIOR LAW

Corporation.

A foreign corporation may not act as city treasurer, nor as a depository, nor may a city lend credit to a corporation. State ex rel. Kistler v. Hankinson, 53 N.D. 346, 205 N.W. 995, 1925 N.D. LEXIS 87 (N.D. 1925).

40-16-16. Delegation of powers and duties.

The city council or city commission may delegate any functions and duties of the city auditor to an officer appointed under section 40-14-04 or 40-15-05.

Source: S.L. 1973, ch. 320, § 14.

CHAPTER 40-17 City Treasurer [Repealed]

[Repealed by S.L. 1973, ch. 320, § 19]

CHAPTER 40-18 Municipal Judges

40-18-01. Jurisdiction and qualifications of municipal judge.

  1. The municipal judge within a city having a population of five thousand or more must be licensed to practice law in this state, unless no person so licensed is available in the city. In a city with a population of less than five thousand, the municipal judge need not be licensed to practice law in this state, nor may the judge be required to be a resident of the city. The municipal judge has jurisdiction to hear, try, and determine offenses against the ordinances of the city.
  2. In a city with a population of less than five thousand, the city may, by resolution or ordinance, require that municipal judges of the city be licensed to practice law in this state.
  3. Notwithstanding any other provision of law, the municipal court has no jurisdiction to hear, try, and determine an offense which would be a violation of section 39-08-01 or equivalent ordinance, if the individual charged with the offense has twice previously been convicted of a violation of section 39-08-01 or equivalent ordinance within the seven years preceding the commission of the offense charged or if the individual charged with the offense has three times previously been convicted of a violation of section 39-08-01 or equivalent ordinance within the fifteen years preceding the commission of the offense charged. If such an offense is charged in the municipal court and the municipal judge has notice of a violation of section 39-08-01 or equivalent ordinance twice within the seven years, or three times within the fifteen years, preceding the commission of the offense charged, the municipal judge shall dismiss the charge, without prejudice, and direct that the charge be filed against the individual in district court.
  4. Notwithstanding any other provision of law, a municipal court in which the judge is not a person licensed to practice law in this state has no jurisdiction to hear, try, and determine an offense that would be a violation of section 39-08-01 or equivalent ordinance.

Source: S.L. 1881, ch. 134, § 1; 1887, ch. 73, art. 4, § 5, art. 10, § 1; 1889, ch. 33, § 5; R.C. 1895, §§ 2152, 2193, 2403; R.C. 1899, §§ 2152, 2193, 2403, S.L. 1905, ch. 62, §§ 53, 90; R.C. 1905, §§ 2684, 2723, 2911; C.L. 1913, §§ 3605, 3647, 3917; R.C. 1943, § 40-1801; S.L. 1959, ch. 268, § 4; 1963, ch. 292, § 2; 1965, ch. 286, § 1; 1967, ch. 323, § 126; 1973, ch. 326, § 1; 1981, ch. 320, § 96; 1983, ch. 415, § 36; 1987, ch. 375, § 4; 1991, ch. 446, § 1; 1991, ch. 326, § 155; 2019, ch. 335, § 2, effective August 1, 2019.

Cross-References.

Election of municipal judges, see §§ 40-14-01, 40-15-01.

Minors transferred to juvenile court, see § 27-20-09.

Term of office of municipal judges, see §§ 40-14-02, 40-15-02.

Notes to Decisions

Authority to Adjudicate.

Imposition of a fine for violation of municipal ordinances was reversed and remanded for entry of an order vacating the decision because the Fargo Administrative Enforcement Board had no statutory authority to adjudicate the owner’s alleged violations of the municipal ordinances and its decision was void, when there was no authority for the creation of an administrative system for adjudication of alleged violations of ordinances or regulations enacted by the municipality as an alternative to municipal court and the responsibilities granted to the Board conflicted with N.D.C.C. § 40-18-01(1). City of Fargo v. Malme, 2007 ND 137, 737 N.W.2d 390, 2007 N.D. LEXIS 141 (N.D. 2007).

Limited Jurisdiction.

Supreme Court of North Dakota held that post-conviction relief under N.D.C.C. ch. 29-32.1 was not available in municipal courts in North Dakota, because municipal courts are courts of limited jurisdiction under N.D.C.C. § 40-18-01(1); whereas, the district courts have general jurisdiction under N.D.C.C. § 27-05-06. Jurisdiction to adjudicate applications for post-conviction relief was designed to be vested in courts of general jurisdiction. Holbach v. City of Minot, 2012 ND 117, 817 N.W.2d 340, 2012 N.D. LEXIS 109 (N.D. 2012).

Collateral References.

Criminal jurisdiction of municipal or other local court, 102 A.L.R.5th 525.

Law Reviews.

Survey of the Trial Courts of the North Dakota Judicial System, 26 Bar Briefs, State Bar Ass’n of N.D. 345 (1950).

40-18-02. City justice of the peace — Jurisdiction and procedure. [Repealed]

Repealed by S.L. 1959, ch. 268, § 34.

40-18-03. Vacancy in office of municipal judge — Temporary absence of municipal judge.

If a vacancy exists in the office of municipal judge by death, resignation, or otherwise, it must be filled by appointment by the executive officer, subject to confirmation by the governing body of the city. An appointee shall qualify and hold office until the next city election and until a successor is elected and qualified. The governing body may appoint an alternate municipal judge to serve when the municipal judge is unable to serve due to temporary absence, interest, disqualification, or disability. The alternate judge must be compensated at a rate set by the governing body and shall possess the qualifications of a municipal judge.

Source: S.L. 1889, ch. 33, § 7; R.C. 1895, § 2204; R.C. 1899, § 2204; S.L. 1905, ch. 62, § 101; R.C. 1905, § 2734; C.L. 1913, § 3658; R.C. 1943, § 40-1803; S.L. 1955, ch. 265, § 1; 1957 Supp., § 40-1803; S.L. 1959, ch. 268, § 15; 1963, ch. 292, § 1; 1965, ch. 286, § 2; 1967, ch. 327, § 3; 1981, ch. 320, § 97; 1987, ch. 375, § 5.

Cross-References.

Rule relating to district judge and municipal judge self-disqualification procedure, see N.D. Sup. Ct. Admin. R. 17, North Dakota Century Code Court Rules Annotated.

40-18-04. Office hours of municipal judge. [Repealed]

Superseded by N.D.R.Crim.P. 56.

40-18-05. Municipal judge is conservator of the peace — Powers on Sunday restricted.

The municipal judge within the judge’s city shall be a conservator of the peace and shall have power to bring persons before the municipal judge forthwith for trial. The municipal judge’s court shall be open every day except Sunday to hear and determine cases cognizable before the municipal judge. The municipal judge shall perform no official act on Sunday but may receive complaints, issue process, take bail, and receive verdicts.

Source: Pol. C. 1877, ch. 24, § 68; S.L. 1887, ch. 73, art. 10, § 8; R.C. 1895, §§ 2200, 2410; R.C. 1899, §§ 2200, 2410; S.L. 1905, ch. 62, § 97; R.C. 1905, §§ 2730, 2918; C.L. 1913, §§ 3654, 3924; R.C. 1943, § 40-1805; S.L. 1959, ch. 268, § 16; 1965, ch. 286, § 4; 1967, ch. 323, § 127.

40-18-06. Salary of municipal judge — Payment of funds to treasury.

The municipal judge must be paid a salary by the city and may not be paid in relation to fees or fines collected by the municipal court. The municipal judge’s salary may not be reduced during the municipal judge’s term of office.

At the end of each month, the municipal judge shall make and file with the city auditor a written report under oath showing an account of all fees, fines, costs, forfeitures, and any other monetary consideration collected by the court during the preceding month and showing the actions in which the fees were collected. The municipal court shall pay the amount of fees, fines, costs, forfeitures, and any other monetary consideration collected to the city treasury at the end of each month. The judge’s salary may not be paid until the judge has complied with this section.

Source: S.L. 1877, ch. 73, art. 5, § 12; 1893, ch. 35, § 1; R.C. 1895, § 2166; R.C. 1899, § 2166; S.L. 1905, ch. 62, § 67; R.C. 1905, § 2698; C.L. 1913, § 3622; R.C. 1943, § 40-1806; S.L. 1959, ch. 268, § 32; 1965, ch. 286, § 5; 1975, ch. 373, § 1; 1983, ch. 82, § 79; 1987, ch. 375, § 6.

40-18-06.1. Municipal court clerk — Appointment — Salary — Authority.

The governing body of a city, with the consent of its municipal judge, may appoint any qualified person to serve as municipal court clerk or deputy clerk for municipal ordinance violations. A municipal court clerk or deputy clerk is entitled to receive a salary as fixed by the governing body. The municipal judge is responsible for the supervision of the municipal court clerk or deputy clerk when the clerk or deputy clerk is performing judicial or administrative functions on behalf of the municipal court. The municipal judge may assign responsibilities to the municipal court clerk or deputy clerk, including the administration of the office of the municipal court and the supervision of other personnel of that office. The supreme court may adopt rules for the qualifications of municipal court clerks and deputy clerks, the extent and assignment of authority by municipal judges, and the conduct of the office, including rules for training sessions and for continuing education.

Source: S.L. 1987, ch. 375, § 7; 1997, ch. 351, § 1.

40-18-06.2. Transfer of municipal ordinance cases to district court — Abolition of office of municipal judge.

With the agreement of the governing body of the county, the presiding judge of the judicial district in which the city is located, and the state court administrator, the governing body of a city may, by ordinance, transfer some or all of the cases of the municipal court to the district court serving the county in which the city is located. These cases are deemed district court cases for purposes of appeal. The governing body of a city with a population of less than five thousand, upon transferring all municipal court cases to the district court, may abolish by resolution the office of municipal judge. The term of office of the municipal judge elected to serve that city terminates upon the last day of the month in which all municipal cases have been transferred to district court or the expiration of the judge’s term, whichever occurs first.

Source: S.L. 1987, ch. 375, § 8; 1991, ch. 326, §§ 156, 157; 2019, ch. 336, § 1, effective March 21, 2019.

40-18-07. Warrants of arrest issued by municipal judge — Service of warrant. [Repealed]

Superseded by N.D.R.Crim.P., Rule 4.

40-18-08. Warrants issued by municipal judge to run to whom. [Repealed]

Superseded by N.D.R.Crim.P., Rule 4.

40-18-09. Subpoena of witnesses — Continuance of trial — Verbal notice to witnesses to attend. [Repealed]

Superseded by N.D.R.Crim.P., Rule 17.

40-18-10. Trials for misdemeanors before municipal judge governed by justice court procedure. [Repealed]

Repealed by S.L. 1967, ch. 327, § 4.

40-18-11. How proceedings in criminal cases not provided for in this chapter to be governed. [Repealed]

Superseded by N.D.R.Crim.P., Rules 1, 54.

40-18-12. Commitment for violation of city ordinance — Limitation — Labor in lieu of fine — Diagnosis and treatment of persons convicted while driving under the influence.

If the defendant is found guilty of the violation of a municipal ordinance and is committed as provided in section 40-11-12, the governing body may provide by ordinance that the defendant work for the city at such labor as the defendant’s strength and health permit, not exceeding eight hours in each working day. For that work, the person so imprisoned must be allowed for each day, exclusive of board, ten dollars on account of the fines and costs assessed. If a person is convicted under an ordinance prohibiting driving or being in physical control of a vehicle while under the influence of an intoxicating liquor or a narcotic drug, the court shall order the person to an appropriate licensed addiction treatment program for addiction evaluation.

Source: Pol. C. 1877, ch. 24, §§ 67, 70; S.L. 1887, ch. 73, art. 4, § 4, art. 10, § 7; R.C. 1895, §§ 2151, 2199, 2409, 2412; R.C. 1899, §§ 2151, 2199, 2409, 2412; S.L. 1905, ch. 62, §§ 52, 96; R.C. 1905, §§ 2683, 2729, 2917, 2920; C.L. 1913, §§ 3604, 3653, 3923, 3926; R.C. 1943, § 40-1812; S.L. 1967, ch. 113, § 2; 1967, ch. 323, § 129; 1973, ch. 302, § 2; 1975, ch. 106, § 455; 1983, ch. 415, § 37; 1985, ch. 429, § 22.

Cross-References.

Driving under the influence, requiring participation in addiction treatment program, see § 39-06.1-10.

Limitations on city fines and penalties, see § 40-05-06.

Motor vehicle convictions reported to licensing authority, see § 39-07-11.

Collateral References.

Operation of bicycle as within drunk driving statute, 73 A.L.R.4th 1139.

40-18-13. Sentencing alternatives — Suspension of sentence or imposition of sentence.

Subject to section 40-05-06, a municipal judge may use the sentencing alternatives provided by section 12.1-32-02 and may suspend any sentence the judge imposes or defer the imposition of any sentence during the good behavior of any person adjudged to have committed an offense, or for other reasonable cause, under subsection 3 or 4 of section 12.1-32-02, except that a municipal judge may not suspend a sentence or the imposition of sentence for driving a motor vehicle in violation of an operator’s license suspension, revocation, or restriction or for a violation of section 39-08-01 or equivalent ordinance if that suspension of sentence or suspension of the imposition of sentence is prohibited under section 39-06-17 or 39-06-42 or chapter 39-08.

Source: S.L. 1887, ch. 73, art. 10, § 10; R.C. 1895, § 2202; R.C. 1899, § 2202; S.L. 1905, ch. 62, § 99; R.C. 1905, § 2732; C.L. 1913, § 3656; R.C. 1943, § 40-1813; S.L. 1959, ch. 268, § 21; 1965, ch. 286, § 11; 1981, ch. 409, § 2; 1983, ch. 415, § 38; 1989, ch. 158, § 16.

40-18-14. Municipal judge may enforce orders and judgments and punish for contempt.

A municipal judge may enforce due obedience to the court’s orders and judgments. The judge may fine or imprison for contempt committed in the judge’s presence while holding court, as well as for contempt of process issued, and of orders made by the judge. When an act or omission constituting a contempt in a municipal court is not committed in the presence of the municipal judge, an affidavit alleging the facts may be filed and a warrant of arrest thereupon may issue on which the person accused may be arrested and brought before the municipal judge immediately. The person must be given a reasonable opportunity to employ counsel and defend against the alleged contempt. After hearing the allegations and proofs, the municipal judge may discharge the person or adjudge the person guilty and may punish by fine or imprisonment or both. The fine in any case may not be more than one thousand five hundred dollars and the imprisonment may not be more than thirty days.

Source: Pol. C. 1877, ch. 24, § 71; S.L. 1887, ch. 73, art. 10, § 13; 1889, ch. 33, § 5; R.C. 1895, §§ 2206, 2413; R.C. 1899, §§ 2206, 2413; S.L. 1905, ch. 62, § 103; R.C. 1905, §§ 2736, 2921; C.L. 1913, §§ 3660, 3927; R.C. 1943, § 40-1814; S.L. 1959, ch. 268, § 22; 1965, ch. 286, § 12; 1981, ch. 320, § 98; 1987, ch. 375, § 9; 1997, ch. 132, § 4; 2019, ch. 335, § 3, effective August 1, 2019.

Notes to Decisions

Limited Jurisdiction.

Supreme Court of North Dakota held that post-conviction relief under N.D.C.C. ch. 29-32.1 was not available in municipal courts in North Dakota, because municipal courts are courts of limited jurisdiction under N.D.C.C. § 40-18-14; whereas, the district courts have general jurisdiction under N.D.C.C. § 27-05-06. Jurisdiction to adjudicate applications for post-conviction relief was designed to be vested in courts of general jurisdiction. Holbach v. City of Minot, 2012 ND 117, 817 N.W.2d 340, 2012 N.D. LEXIS 109 (N.D. 2012).

40-18-14.1. Judgment for fine or costs.

If the judgment provided for in section 40-18-14 imposes a fine or assesses a cost, the municipal judge may order an authenticated copy of the judgment be filed in the office of the clerk of any district court of any county in the state. The clerk of district court shall treat the municipal court judgment in the same manner as a civil judgment of any district court of any county of the state.

Source: S.L. 2021, ch. 304, § 1, effective July 1, 2021.

40-18-14.2. Notice of filing.

  1. At the time of filing a judgment under section 40-18-14, the municipal court judge shall order an affidavit providing the name and last-known mailing address of the defendant and otherwise complying with section 28-20-15 be filed.
  2. Upon the filing of the judgment and affidavit as provided in section 40-18-14, the clerk of municipal court shall mail notice of the filing of the municipal judgment to the defendant at the defendant’s last-known address and file proof of mailing with the district court. The notice must include the name and mailing address of the municipal court.
  3. An execution of other process for enforcement of a municipal court judgment filed under this section may not be issued until ten days after the date the judgment is filed.

Source: S.L. 2021, ch. 304, § 2, effective July 1, 2021.

40-18-14.3. Stay.

If the defendant shows the district court of any county that an appeal from the judgment provided in section 40-18-14 is pending or will be taken, the court shall stay enforcement of the municipal court judgment until the appeal is concluded or the time of appeal expires.

Source: S.L. 2021, ch. 304, § 3, effective July 1, 2021.

40-18-14.4. Fees.

The municipal judge shall order a filing fee of ten dollars to be paid to the clerk of the district court.

Source: S.L. 2021, ch. 304, § 4, effective July 1, 2021.

40-18-14.5. Effect of filing.

Upon filing of a judgment under section 40-18-14 with the district court in accordance with this chapter, the judgment is enforceable only in the same manner as provided for a judgment for money in a civil action.

Source: S.L. 2021, ch. 304, § 5, effective July 1, 2021.

40-18-15. Trials in nonjury cases arising under the ordinances of a city.

An action for the violation of a city ordinance for which the right to a jury trial does not otherwise exist or in which the defendant has timely and appropriately waived a right to a jury trial in writing pursuant to rules of the supreme court may be tried and determined by the municipal judge without the intervention of a jury. In the event of an adverse verdict in a municipal court trial, a defendant may appeal as provided in section 40-18-19, but a waiver of jury trial in the municipal court proceeding also constitutes a waiver of jury trial in the district court.

Source: Pol. C. 1877, ch. 24, § 71; S.L. 1887, ch. 73, art. 10, § 13; 1889, ch. 33, § 5; R.C. 1895, §§ 2206, 2413; R.C. 1899, §§ 2206, 2413; S.L. 1905, ch. 62, § 103; R.C. 1905, §§ 2736, 2921; C.L. 1913, §§ 3660, 3927; R.C. 1943, § 40-1815; S.L. 1965, ch. 286, § 13; 1967, ch. 323, § 130; 1973, ch. 327, § 1; 1987, ch. 375, § 10; 1991, ch. 326, § 158.

Notes to Decisions

Construction.

This section’s guarantee of a jury trial on appeal from municipal court if the defendant has not waived his right to jury trial is superseded by N.D.C.C. § 40-18-15.1, which requires the defendant to demand a jury trial within 28 days of arraignment. City of Bismarck v. Fettig, 1999 ND 193, 601 N.W.2d 247, 1999 N.D. LEXIS 210 (N.D. 1999).

Jury Trial.

While a defendant does not have a right to a jury trial in municipal court, he does have a statutory right under this section to a trial by jury upon appeal from determination of a municipal judge. City of Bismarck v. Altevogt, 353 N.W.2d 760, 1984 N.D. LEXIS 340 (N.D. 1984).

Waiver of Jury Trial.

Where defendant did not show up for trial on driving under influence charge and the municipal court granted the city prosecutor’s motion to forfeit his bond, defendant prevented the occurrence of the jurisdictional predicate (a municipal court trial and a determination by the municipal judge) giving rise to his right to secure a jury trial upon appeal (decided prior to 1987 amendments to section 40-18-15 and enactment of section 40-18-15.1). City of Minot v. Mattern, 449 N.W.2d 560, 1989 N.D. LEXIS 248 (N.D. 1989).

40-18-15.1. Transfer to district court — Expenses of prosecution — Division of funds and expenses between city, county, and state.

A matter may be transferred to district court for trial if within twenty-eight days after arraignment the defendant has requested in writing to transfer the case to district court and to exercise the defendant’s right to a jury trial. After a transfer to district court, if the defendant waives a jury trial, the matter must be remanded to the municipal court for disposition if the defendant and prosecuting attorney agree to the remand. Unless remanded to the municipal court by agreement of the parties, the district court shall retain jurisdiction for sentencing. The city shall provide a prosecuting attorney and, in the case of any indigent defendant, a defense attorney. The city may contract with the county, state, or any individual or entity for prosecution or defense services. In the contract, the city, county, and state may agree to a division of all fees, fines, costs, forfeitures, and any other monetary consideration collected from cases transferred under this section, which must be paid to the city and county treasury and state general fund at least once each quarter. At the time of payment, the clerk of district court shall account under oath to the city auditor, county, and state treasurer for all money collected. In the contract the city, county, and state may also agree to a division of expenses, including jury and witness expenses, related to cases transferred under this section. In the absence of a contract all fees, fines, costs, forfeitures, and any other monetary consideration collected from transferred cases must be deposited in the state general fund.

Source: S.L. 1987, ch. 375, § 11; 1989, ch. 489, § 1; 1989, ch. 490, § 1; 1991, ch. 326, § 159; 1995, ch. 388, § 1; 1995, ch. 389, § 1; 2011, ch. 295, § 1; 2017, ch. 280, § 1, effective August 1, 2017.

Notes to Decisions

In General.

Under this section, a municipal court prosecution is automatically transferred to county court for trial if the defendant does not waive in writing the right to a jury trial within twenty-eight days after arraignment. City of Fargo v. Dawson, 466 N.W.2d 584, 1991 N.D. LEXIS 17 (N.D. 1991).

A municipal court defendant must request a jury trial and a transfer to the district court within 28 days of arraignment or the right to jury trial is waived. City of Bismarck v. Fettig, 1999 ND 193, 601 N.W.2d 247, 1999 N.D. LEXIS 210 (N.D. 1999).

Because a driver failed to make a timely request under N.D.C.C. § 40-18-15.1 to transfer the matter involving his violation of a municipal ordinance by speeding to district court for trial after arraignment, his right to a jury trial was lost. City of Grand Forks v. Riemers, 2008 ND 153, 755 N.W.2d 99, 2008 N.D. LEXIS 153 (N.D. 2008).

Because Minot Code of Ordinances § 2-71 and N.D.C.C. § 40-20-02 did not conflict and the language for supersession in N.D.C.C. § 40-05.1-05 did not apply, the city retained the power applicable to all municipalities under N.D.C.C. § 40-20-02 to appoint assistant city attorneys and the city had the statutory authority and power to contract with a county under N.D.C.C. §§ 54-40.3-01 and 40-18-15.1 for municipal prosecution services. City of Minot v. Rudolph, 2008 ND 231, 758 N.W.2d 731, 2008 N.D. LEXIS 201 (N.D. 2008).

District court erred in holding that it was prohibited from taking judicial notice of the city ordinance by a prior case and N.D.C.C. §§ 40-18-15.1 and 40-18-19. City of Bismarck v. McCormick, 2012 ND 53, 813 N.W.2d 599, 2012 N.D. LEXIS 55 (N.D. 2012).

Constitutionality.

This section’s requirement that a municipal court defendant charged with violation of a city ordinance demand a jury trial within 28 days of arraignment does not violate N.D. Const. art. I, § 13. City of Bismarck v. Fettig, 1999 ND 193, 601 N.W.2d 247, 1999 N.D. LEXIS 210 (N.D. 1999).

Construction.

This section implicitly supersedes N.D.C.C. § 40-18-15 to the extent that the latter section guarantees defendants the right to jury trial on appeal from municipal court if the defendant has not waived his right to jury trial. City of Bismarck v. Fettig, 1999 ND 193, 601 N.W.2d 247, 1999 N.D. LEXIS 210 (N.D. 1999).

This section does not provide a municipal court or the clerk of court the authority to extend the 28-day time period in which to request a jury trial. City of Grand Forks v. Thong, 2002 ND 48, 640 N.W.2d 721, 2002 N.D. LEXIS 43 (N.D. 2002).

During defendant’s trial for driving under suspension, the district court did not abuse its discretion in denying defendant’s request for court-appointed counsel on the basis that defendant had to apply in municipal court because the district court was not authorized to grant such a request in light of the statute. City of Grand Forks v. Corman, 2009 ND 125, 767 N.W.2d 847, 2009 N.D. LEXIS 138 (N.D. 2009).

No Transfer.

Criminal judgment entered after a district court held a trial anew was reviewed on appeal because it was appropriately designated an appeal, rather than a transfer. A municipal judge erroneously treated defendant's notice of appeal as a request for “transfer.” City of Napoleon v. Kuhn, 2015 ND 75, 860 N.W.2d 460, 2015 N.D. LEXIS 54 (N.D. 2015).

Postconviction Proceedings.

Supreme Court of North Dakota lacked jurisdiction over a municipal court judgment denying petitioner’s application for post-conviction relief, because the appeal was not authorized by statute. An appeal from a final judgment in a matter that has been transferred from municipal court under N.D.C.C. § 40-18-15.1 to district court for trial can be brought to the Supreme Court; however, this appeal was not such a case. Holbach v. City of Minot, 2012 ND 117, 817 N.W.2d 340, 2012 N.D. LEXIS 109 (N.D. 2012).

Law Reviews.

Article: The Law Of Unintended Consequences: The North Dakota Supreme Court Recognizes the Right to a Jury Trial for Noncriminal Traffic Offenses in Riemers v. Eslinger, see 86 N.D. L. Rev. 505.

North Dakota Supreme Court Review, 76 N.D. L. Rev. 451 (2000).

40-18-16. Procedure when jury demanded in court of municipal judge. [Repealed]

Repealed by S.L. 1973, ch. 327, § 2.

40-18-17. Challenges for cause to jurors in court of municipal judge. [Repealed]

Repealed by S.L. 1973, ch. 327, § 3.

40-18-18. Fee of juror in court of municipal judge. [Repealed]

Repealed by S.L. 1973, ch. 327, § 4.

40-18-19. Appeals from determinations of municipal judge.

An appeal may be taken to the district court from a judgment of conviction or order deferring imposition of sentence in a municipal court in accordance with the North Dakota Rules of Criminal Procedure. An appeal is perfected by notice of appeal. A perfected appeal to the district court transfers the action to such district court for trial anew. On all appeals from a determination in a municipal court, the district court shall take judicial notice of all of the ordinances of the city. No filing fee may be required in district court for the filing of an appeal from a judgment of conviction for the violation of a municipal ordinance. Expenses necessary for the adequate defense of a needy person in an appeal to district court from a judgment of conviction for the violation of a municipal ordinance, as approved by the presiding district judge, must be paid by the city wherein the alleged offense took place.

Source: Pol. C. 1877, ch. 24, §§ 69, 71; S.L. 1887, ch. 73, art. 10, §§ 9, 13; 1889, ch. 33, § 5; R.C. 1895, §§ 2201, 2206, 2411, 2413; R.C. 1899, §§ 2201, 2206, 2411, 2413; S.L. 1905, ch. 62, §§ 98, 103; R.C. 1905, §§ 2731, 2736, 2919, 2921; C.L. 1913, §§ 3655, 3660, 3925, 3927; R.C. 1943, § 40-1819; S.L. 1955, ch. 266, § 1; 1957 Supp., § 40-1819; S.L. 1959, ch. 268, § 27; 1965, ch. 286, § 17; 1967, ch. 323, § 133; 1969, ch. 283, § 2; 1981, ch. 91, § 30; 1981, ch. 320, § 99; 1981, ch. 414, § 1; 1987, ch. 375, § 12; 1987, ch. 393, § 4; 1991, ch. 326, § 160.

Cross-References.

Appeals from determinations of municipal court to be filed and heard in district court of that county, see N.D. Sup. Ct. Admin. R. 16, North Dakota Century Code Court Rules Annotated.

Disposition of fines, penalties and forfeitures, see § 40-11-13.

Notes to Decisions

Appellate Jurisdiction.

N.D.C.C. § 40-18-19 and N.D. R. Crim. P. 37 limit a defendant's time for appealing from a municipal court's judgment of conviction and post-judgment orders. City of Williston v. Werkmeister, 2015 ND 172, 865 N.W.2d 429, 2015 N.D. LEXIS 185 (N.D. 2015).

Defendant's appeal of a district court order denying his appeal from a municipal court's order was dismissed for lack of jurisdiction where defendant did not have a right to appeal to the district court from the municipal court's post-judgment orders under N.D.C.C. § 40-18-19, and his appeal from the judgment of conviction was not timely and did not comply with N.D. R. Crim. P. 37. City of Williston v. Werkmeister, 2015 ND 172, 865 N.W.2d 429, 2015 N.D. LEXIS 185 (N.D. 2015).

Criminal Ordinance.

A prosecution, under an ordinance prohibiting an offense likewise prohibited by state law as against public welfare and where the penalty may be imprisonment, is criminal in nature and criminal procedure applies; in such a case the city has no right to move for a new trial after the defendant has been acquitted. City of Minot v. Whitfield, 71 N.W.2d 766, 1955 N.D. LEXIS 132 (N.D. 1955).

Judicial Notice.

A copy of a foreign statute need not be in evidence before it is judicially noticed. City of Mandan v. Mertz, 399 N.W.2d 298, 1987 N.D. LEXIS 236 (N.D. 1987).

Where judicial notice of a municipal ordinance is required under this section, it is not necessary that a copy of the ordinance be placed in evidence, although it is essential that the trial court be supplied with the necessary information. City of Mandan v. Mertz, 399 N.W.2d 298, 1987 N.D. LEXIS 236 (N.D. 1987).

District court erred in holding that it was prohibited from taking judicial notice of the city ordinance by a prior case and N.D.C.C. §§ 40-18-15.1 and 40-18-19. City of Bismarck v. McCormick, 2012 ND 53, 813 N.W.2d 599, 2012 N.D. LEXIS 55 (N.D. 2012).

Postconviction Proceedings.

Supreme Court of North Dakota lacked jurisdiction over a municipal court judgment denying petitioner’s application for post-conviction relief, because the appeal was not authorized by statute. N.D.C.C. § 40-18-19 provides for an appeal to “the district court,” not directly to the Supreme Court; and provides for the appeal of a judgment of conviction or order deferring imposition of sentence. Holbach v. City of Minot, 2012 ND 117, 817 N.W.2d 340, 2012 N.D. LEXIS 109 (N.D. 2012).

Presence of Defendant.

N.D.R.Crim.P. 43 applies to appeals from municipal courts, as well as to criminal actions initiated in district court; therefore, although defendant’s right to be present under the Sixth Amendment and N.D. Const. art. I, § 12 was not violated when counsel was given the choice to proceed in his absence or face a dismissal of an appeal from municipal court because he had already appeared in the first trial of the case, an error was committed since his presence was required under N.D.R.Crim.P. 43(a). City of Fargo v. Komad, 2006 ND 177, 720 N.W.2d 619, 2006 N.D. LEXIS 184 (N.D. 2006).

Right to Counsel.

Defendant charged with driving violation is entitled to court appointed counsel in appeal to county court from his municipal court conviction if defendant is indigent and unless he waives such right or no actual incarceration is imposed upon conviction. City of Bismarck v. Saavedra, 397 N.W.2d 455, 1986 N.D. LEXIS 449 (N.D. 1986).

Trial Anew in County Court.

Because municipal courts are not courts of record, appeals from municipal court to county court require trial anew; although this procedure is cumbersome and duplicative, there was no constitutional deficiency in permitting the city to appeal from the pretrial suppression of evidence and dismissal of a DUI complaint against defendant, nor in permitting the city to present different evidence regarding the suppression motion at county court than that which was offered in municipal court. City of Bismarck v. Uhden, 513 N.W.2d 373, 1994 N.D. LEXIS 68 (N.D. 1994).

Trial Anew in District Court.

On appeal from a judgment of a police magistrate’s court, trial anew in the district court is not the exercise of original jurisdiction by the district court and does not violate the constitutional provision vesting exclusive jurisdiction over city ordinance violations in the police magistrate’s court. City of Minot v. Davis, 84 N.W.2d 891, 1957 N.D. LEXIS 143 (N.D. 1957).

Criminal judgment entered after a district court held a trial anew was reviewed on appeal because it was appropriately designated an appeal, rather than a transfer. A municipal judge erroneously treated defendant's notice of appeal as a request for “transfer.” City of Napoleon v. Kuhn, 2015 ND 75, 860 N.W.2d 460, 2015 N.D. LEXIS 54 (N.D. 2015).

DECISIONS UNDER PRIOR LAW

Appeal by Cities.

In this state there is no statutory regulation authorizing appeal by cities from judgments of police magistrates of acquittal of violations of municipal ordinances. Minot v. Kitzman, 71 N.W.2d 633, 1955 N.D. LEXIS 125 (N.D. 1955).

Law Reviews.

“A Comparison of Drinking and Driving Law in Norway and North Dakota: More Than a Difference in Penalties,” 76 N.D. L. Rev. 33 (2000).

North Dakota Supreme Court Review (City of Fargo v. Komad), 83 N.D. L. Rev. 1085 (2007).

40-18-20. Demand for change of judge.

Any party to a proceeding pending in any municipal court may obtain a change of judge pursuant to section 29-15-21, except that either a district judge or a municipal judge may be appointed to act in place of the disqualified judge. The alternate municipal judge, if any, is automatically appointed to preside in the case.

Source: S.L. 1967, ch. 327, § 1; 1987, ch. 375, § 13; 1991, ch. 326, § 161.

Cross-References.

Temporary disqualification of municipal judge, see § 40-18-03.

40-18-21. Change of venue in municipal court. [Repealed]

Superseded by N.D.R.Crim.P., Rule 21.

40-18-21.1. Change of venue — Reliable electronic means.

  1. A municipal judge may change the venue of a proceeding under this chapter upon consideration of the following factors:
    1. Convenience to the parties and witnesses;
    2. Judicial efficiency;
    3. Available facilities; and
    4. Administration of justice.
  2. A municipal judge may not change the venue of a proceeding if any party to the proceeding objects to the change.
  3. A municipal judge may use contemporaneous audio or audiovisual transmission by reliable electronic means in accordance with rule 52 of the North Dakota Supreme Court Administrative Rules. A municipal judge who presides over a proceeding through contemporaneous audio or audiovisual transmission by reliable electronic means is equivalent to a municipal judge who is physically present at the proceeding.

Source: S.L. 2019, ch. 337, § 1, effective August 1, 2019.

40-18-22. Continuing education of municipal judge and alternate judge required.

Each municipal judge and alternate judge shall comply with continuing judicial education requirements established by supreme court rule. The city shall reimburse the judge for necessary expenses of travel and subsistence as other city officials are so reimbursed.

If any judge fails to fulfill the requirements of this section, without being excused by the supreme court, the state court administrator shall report the judge’s failure to the judicial conduct commission for appropriate action.

Source: S.L. 1975, ch. 272, § 4; 1985, ch. 339, § 4; 1987, ch. 375, § 14; 1999, ch. 365, § 1.

CHAPTER 40-19 Assessors

40-19-01. Duties of city assessor.

The city assessor within the city shall perform all the duties necessary in assessing the property within the city for the purpose of levying the municipal, county, school, and state taxes. Such assessors shall be governed by and shall make assessments and returns as is provided in title 57 and in this chapter.

Source: Pol. C. 1877, ch. 24, § 31; S.L. 1887, ch. 73, art. 9, §§ 1, 2; 1893, ch. 33, § 1; R.C. 1895, §§ 2184, 2185, 2374; R.C. 1899, §§ 2184, 2185, 2374; S.L. 1905, ch. 62, §§ 84, 85; R.C. 1905, §§ 2717, 2718, 2873; S.L. 1911, ch. 294, § 1; C.L. 1913, §§ 3641, 3642, 3871; S.L. 1929, ch. 248, § 2; R.C. 1943, § 40-1901; S.L. 1967, ch. 323, § 134.

Cross-References.

Appointment of assessors in commission cities, see § 40-15-05.

Appointment of assessors in council cities, see § 40-14-04.

Salaries of assessors in municipalities, see § 40-13-04.

40-19-02. City assessor may list property prior to April first — Duty of county auditor. [Repealed]

Repealed by S.L. 1983, ch. 598, § 25.

40-19-03. Return of assessment roll by city assessor.

When the assessment is completed, and on or before the first day of April in each year, the city assessor shall return the assessment roll to the city auditor. The assessment roll shall be open to the inspection of the public until the meeting of the board of equalization of the municipality. The city auditor shall deliver the assessment roll to the board of equalization of the municipality at its regular meeting.

Source: Pol. C. 1877, ch. 24, § 31; S.L. 1887, ch. 73, art. 9, §§ 1, 2; 1893, ch. 33, § 1; R.C. 1895, §§ 2184, 2185, 2374; R.C. 1899, §§ 2184, 2185, 2374; S.L. 1905, ch. 62, §§ 84, 85; R.C. 1905, §§ 2717, 2718, 2873; S.L. 1911, ch. 294, § 1; C.L. 1913, §§ 3641, 3642, 3871; S.L. 1929, ch. 248, § 2; R.C. 1943, § 40-1903; S.L. 1967, ch. 323, § 135; 1975, ch. 374, § 1.

Cross-References.

Changes in assessment lists necessitated by changes in wards, see § 40-52-06.

DECISIONS UNDER PRIOR LAW

Affidavit.

The failure to attach the assessor’s affidavit to an assessment roll is illegal and renders the assessment void in an action at law; but in an equitable action to cancel a sale made, or certificate issued, or tax levied under such assessment, the omission will not invalidate the assessment if there is no allegation that it was unjust, unfair, or fraudulent. Douglas v. Fargo, 13 N.D. 467, 101 N.W. 919, 1904 N.D. LEXIS 80 (N.D. 1904).

40-19-04. Compensation of village assessor. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

CHAPTER 40-20 City Attorney, Engineer, Chief of Police, and Police Officers

40-20-01. City attorney — Duties — Docket.

The city attorney shall:

  1. Conduct all law business in which the city or any of its departments is interested.
  2. Furnish written opinions, when requested, upon all questions submitted to the city attorney by the governing body or any of the departments of the city.
  3. Draft all ordinances, bonds, contracts, leases, conveyances, and other instruments that may be required by the officers of the city.
  4. Examine tax and assessment rolls and all proceedings in reference to the levying and collecting of city taxes.
  5. Keep a docket of all cases to which the city may be a party in any court of record in which must be entered briefly all steps taken in each such case and such docket must be open to public inspection at all reasonable hours.
  6. Perform all other duties that may be prescribed by the governing body or by the ordinances of the city or the statutes of the state.

Source: S.L. 1887, ch. 73, art. 7, § 1; R.C. 1895, § 2175; R.C. 1899, § 2175; S.L. 1905, ch. 62, § 75; R.C. 1905, § 2706; S.L. 1907, ch. 45, § 40; 1911, ch. 77, § 40; C.L. 1913, §§ 3630, 3810; R.C. 1943, § 40-2001.

Cross-References.

Record changes necessitated by changes in wards, duty to make, see § 40-52-05.

Notes to Decisions

Appeals.

This section empowers a city attorney to take an appeal in the absence of specific authorization to appeal granted by city commissioners at an open meeting; however, this does not mean that a city attorney’s decision to appeal may not be reviewed and set aside by the governing body of the city or may not be restricted by an ordinance duly enacted. State Bank v. Bismarck, 316 N.W.2d 85, 1982 N.D. LEXIS 232 (N.D. 1982).

40-20-02. Assistant city attorneys — Appointment — Special counsel authorized.

With the consent and approval of the governing body of the city, the city attorney may appoint assistants to do any or all of the acts which the city attorney is required to do under this chapter, but the city attorney shall be responsible to the city for the acts of such assistants. The governing body of the city, however, may employ and pay special counsel when it deems such counsel to be necessary for the best interests of the city.

Source: S.L. 1907, ch. 45, § 40; 1911, ch. 77, § 40; C.L. 1913, § 3810; R.C. 1943, § 40-2002; S.L. 1949, ch. 262, § 1; 1957 Supp., § 40-2002.

Notes to Decisions

Appointment of Assistants.

The mayor and council may appoint attorneys to assist the city attorney, and are not required to select assistants from among resident lawyers. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

Because Minot Code of Ordinances § 2-71 and N.D.C.C. § 40-20-02 did not conflict and the language for supersession in N.D.C.C. § 40-05.1-05 did not apply, the city retained the power applicable to all municipalities under N.D.C.C. § 40-20-02 to appoint assistant city attorneys and the city had the statutory authority and power to contract with a county under N.D.C.C. §§ 54-40.3-01 and 40-18-15.1 for municipal prosecution services. City of Minot v. Rudolph, 2008 ND 231, 758 N.W.2d 731, 2008 N.D. LEXIS 201 (N.D. 2008).

Special Counsel for Electric Project.

City which was planning to erect and operate electrical distribution system had express authority, under this section, to employ special counsel to explore legal duty of public utility to provide transmission service to city as a common carrier or to furnish electrical energy at wholesale cost to city; appointment of special counsel was not an abuse of discretion under circumstances. Anderson v. Hankinson, 157 N.W.2d 833, 1968 N.D. LEXIS 105 (N.D. 1968).

40-20-03. City engineer — Qualifications — Duties — Compensation — Plans or surveys — Preservation and transfer to successor.

The city engineer must be a practical surveyor and engineer. The city engineer shall keep an office in some convenient place in the city and the governing body, by ordinance, shall prescribe the city engineer’s duties and compensation for services performed for the city. All surveys, profiles, plans, or estimates made by the city engineer for the city are the property of the city and must be carefully preserved in the office of the engineer and must be open to the inspection of all interested persons. The surveys, profiles, plans, estimates, and all books and papers pertaining to the city engineer’s office shall be delivered by the engineer at the expiration of the city engineer’s term of office to the successor city engineer or to the governing body of the city.

Source: S.L. 1887, ch. 73, art. 11, § 1; R.C. 1895, § 2248; R.C. 1899, § 2248; S.L. 1905, ch. 62, § 106; R.C. 1905, § 2739; C.L. 1913, § 3663; R.C. 1943, § 40-2003.

Cross-References.

Park district, serving as engineer and surveyor for, see § 40-49-16.

40-20-04. When city engineer or chief of police to be street commissioner.

In cities having no street commissioner, the city engineer shall perform the duties and have the authority of street commissioner, and in cities having no street commissioner or city engineer, the chief of police shall perform the duties and have the authority of street commissioner.

Source: S.L. 1933, ch. 169, §§ 1, 2; R.C. 1943, § 40-2004.

40-20-05. Chief of police and police officers — Powers and duties — Hot pursuit.

  1. The chief of police shall perform duties prescribed by the governing body for the preservation of the peace. The chief of police may administer oaths to police officers under the chief’s supervision. Within the city limits, and for a distance of one and one-half miles [2.41 kilometers] in all directions outside the city limits, the police officers of the city shall perform the duties and exercise the powers of peace officers as defined and prescribed by the laws of this state.
  2. A police officer in “hot pursuit” may continue beyond the one and one-half mile [2.41 kilometers] limit to make an arrest, in obedience to a warrant or without a warrant under the conditions of section 29-06-15, if obtaining the aid of peace officers having jurisdiction beyond that limit would cause a delay permitting escape. As used in this subsection, “hot pursuit” means the immediate pursuit of an individual endeavoring to avoid arrest. The jurisdiction limits in subsection 1 do not apply to a police officer acting pursuant to a joint powers agreement with another jurisdiction.
  3. Police officers shall serve and execute any warrant, writ, process, order, or notice issued by a municipal judge within the city in any civil or criminal action or proceeding for or on account of a violation of any city ordinance or in any action or proceeding in which the city is a party or is interested beneficially. The police, within the limits prescribed in this section, may serve and execute all writs and process issued by justices in civil actions. In addition to the duties set out in this section, the police shall perform such other duties as may be prescribed by ordinance or statute.

Source: S.L. 1887, ch. 73, art. 12, § 1; R.C. 1895, § 2249; R.C. 1899, § 2249; S.L. 1905, ch. 62, § 107; R.C. 1905, § 2740; S.L. 1907, ch. 46, § 1; C.L. 1913, § 3664; R.C. 1943, § 40-2005; S.L. 1971, ch. 393, § 1; 1977, ch. 378, § 1; 2017, ch. 87, § 3, effective April 5, 2017.

Cross-References.

Appointment of chief of police by mayor, see § 40-08-27.

Hospitalization and nursing for police department, see § 40-45-24.

Hours of duty of policemen in cities over ten thousand population, see § 40-45-25.

Jurisdiction of city governing body, see § 40-06-01.

Police pensions in cities, see ch. 40-45.

Notes to Decisions

Failure to Stop.

Evidence of a failure to stop in the presence of police vehicle emergency lights and siren supports by a preponderance of the evidence the finding that the failure to stop was an endeavor to avoid arrest for purposes of N.D.C.C. 40-20-05(2). Maher v. North Dakota Dep't of Transp., 510 N.W.2d 601, 1994 N.D. LEXIS 11 (N.D. 1994).

Jurisdiction for Police Stop.

Although the observation and stop of defendant’s vehicle occurred outside his geographical jurisdiction as the Casselton Chief of Police, the chief was vested with jurisdiction under section 44-08-20(3) by a highway patrolman’s request for assistance in stopping the suspect’s vehicle. State v. Graven, 530 N.W.2d 328, 1995 N.D. LEXIS 64 (N.D. 1995).

In a prosecution of defendant for driving under the influence, the district court erred in denying defendant’s suppression motion, where the record lacked sufficient competent evidence to establish a police officer stopped defendant’s vehicle within the officer’s geographical jurisdiction. There was no evidence that the officer was in hot pursuit of the vehicle driven by defendant as that term was defined by N.D.C.C. § 40-20-05(2), nor was there evidence that the officer was assisting other law enforcement officers at the time he stopped the vehicle. State v. Demars, 2007 ND 145, 738 N.W.2d 486, 2007 N.D. LEXIS 145 (N.D. 2007).

Sufficient competent evidence supported the district court's finding that hot pursuit permitted a University of North Dakota police officer to extend his capacity and authority to stop and arrest defendant. State v. Wilkie, 2017 ND 142, 895 N.W.2d 742, 2017 N.D. LEXIS 138 (N.D. 2017).

Collateral References.

Liability of municipality or other governmental unit for failure to provide police protection, 46 A.L.R.3d 1084.

Law Reviews.

“A Comparison of Drinking and Driving Law in Norway and North Dakota: More Than a Difference in Penalties,” 76 N.D. L. Rev. 33 (2000).

40-20-06. Arrest by chief of police or policeman outside of city — Fees.

No chief of police or policeman shall receive any fee for going outside of the city to make an arrest for violation of a state law unless the board of county commissioners is satisfied that a delay in obtaining the sheriff or a sheriff’s deputy to make the arrest would have permitted an escape.

Source: S.L. 1887, ch. 73, art. 12, § 2; R.C. 1895, § 2250; R.C. 1899, § 2250; S.L. 1905, ch. 62, § 108; R.C. 1905, § 2741; C.L. 1913, § 3665; R.C. 1943, § 40-2006; S.L. 1985, ch. 151, § 28.

40-20-07. Municipalities to furnish blue uniforms to police officers.

Any municipality of this state which employs full-time police officers shall furnish each such police officer with a summer-weight and a winter-weight uniform. The uniforms must be blue in color.

Source: S.L. 1967, ch. 328, § 1.

CHAPTER 40-21 Municipal Elections

40-21-01. Qualified electors in municipal election — Restrictions.

Every resident of a municipality who is qualified to vote therein at general elections may vote at all municipal elections held therein. When elections are held by wards or precincts, a person may not vote in any place other than the ward or precinct of which the person is a resident.

Source: S.L. 1887, ch. 73, art. 13, § 3; N.D. Const., § 121; R.C. 1895, § 2253; R.C. 1899, § 2253; S.L. 1905, ch. 62, § 111; R.C. 1905, § 2744; S.L. 1911, ch. 66; C.L. 1913, § 3668; R.C. 1943, § 40-2101.

Cross-References.

Elector moving from one precinct to another, voting place, see § 16.1-01-05.

Qualifications of electors, age and citizenship requirement, see N.D. Const., art. II, § 1, and § 16.1-01-04.

Notes to Decisions

Delegation of Powers.

The whole subject of creating election districts and locating the polling places where the residents of the district may vote is with the legislature, and it may lawfully delegate this power to local authorities. Kerlin v. Devils Lake, 25 N.D. 207, 141 N.W. 756, 1913 N.D. LEXIS 119 (N.D. 1913).

Residence.

—Generally. The good-faith intent of a voter to make a place his home for all purposes is an essential element entering into the determination of the question of residence. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

The place of one’s residence for the purpose of voting is where he has his established home, the place where he is habitually present and to which he intends to return when he departs. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

––Change of.

The shortest absence coincident with an intention to change the residence defeats the right to vote at the former domicile. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

––Continuation.

A domicile once gained does not continue until a new one is acquired for voting purposes, nor does a right to vote at a particular poll or district continue until the right to vote elsewhere is shown. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

––Proof of.

Notwithstanding one may testify that his intention was to make his home in a certain place, if his acts are of a character to negative his declaration or inconsistent with it, the court will not be governed by his testimony concerning his intention. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

40-21-02. City elections — When held — Notice — Polls — Agreements with counties — Judges and inspectors.

Biennial municipal elections must be held on the second Tuesday in June in each even-numbered year.

  1. Thirty days before the filing deadline for candidate names to be printed on the ballot, an official notice of this deadline along with a list of the offices to appear on the ballot must be published in the official newspaper of the city as provided by section 40-01-09.
  2. Ten days’ notice of the time and place of the election and of the offices to be filled at the election must be given by the city auditor by publication in the official newspaper of the city as provided by section 40-01-09.
  3. The governing body of a city shall enter into an agreement with the governing body of the county or counties in which the city lies concerning the use of a single canvassing board, the sharing of election personnel, the printing of election materials, the publishing of legal notices, and the apportioning of election expenses.
  4. For city elections that are not held under an agreement with any county, the governing body of the city shall appoint one inspector and two judges of election for each polling place in the city at least ten days before the election is held and the polls must be opened and closed as provided for the opening and closing of polls at statewide elections. In voting precincts in which over three hundred votes are cast in any previous election, the governing body may appoint two election clerks for each polling place. For a city election that is not held under an agreement with any county in a precinct in which seventy-five or fewer votes were cast in the last city election, the governing body of the city may appoint one inspector and one judge for each polling place.
  5. When a city enters into an agreement with the county to hold the city election in conjunction with the county election, the deadline for giving notice of the city election along with the offices to be filled at the election may be adjusted in order to meet the publishing requirements of the county. Each city governing body that enters into an agreement with the county must notify the county auditor, in writing, immediately after the candidate filing deadline on the sixty-fourth day before the election of the offices to be filled at the election and any measures to appear on the ballot.

Source: S.L. 1907, ch. 45, § 14; 1911, ch. 77, § 14; C.L. 1913, § 3784; S.L. 1919, ch. 120, § 1; 1923, ch. 171, § 1; 1925 Supp., § 3784; S.L. 1941, ch. 149, § 1; R.C. 1943, § 40-2102; S.L. 1957, ch. 152, § 3; 1957 Supp., § 40-2102; S.L. 1965, ch. 287, § 1; 1967, ch. 158, § 98; 1971, ch. 394, § 1; 1977, ch. 375, § 6; 1983, ch. 458, § 1; 1991, ch. 442, § 15; 1995, ch. 390, § 1; 1997, ch. 162, § 3; 1999, ch. 208, § 6; 2001, ch. 179, § 6; 2005, ch. 185, § 15; 2009, ch. 180, § 27; 2013, ch. 169, § 8; 2013, ch. 176, § 21.

Cross-References.

Designation of polling places, see § 40-21-03.1.

Election officers generally, see ch. 16.1-05.

Opening and closing of polls, see § 16.1-01-03.

Notes to Decisions

Selection of Inspectors.

The power to appoint the election inspectors is vested in the city commission, and not in any one member thereof selected by lot. McCurdy v. Lucas, 34 N.D. 613, 159 N.W. 22, 1916 N.D. LEXIS 56 (N.D. 1916).

40-21-03. Elections in council cities — Polling places — Polls open — Notice — Judges, clerks, and inspectors — Agreements with counties. [Repealed]

Repealed by S.L. 1995, ch. 390, § 3.

40-21-03.1. Designation of polling places for municipal elections.

The governing body of any city at the time of calling any general or special municipal election, or prior to the time of registration for said election, if such registration is required by law, when officers of said city are not to be elected by wards or districts, may by resolution designate such voting precincts and polling places for said election as it may deem necessary for the conduct of the same and shall in giving notice of said election designate such voting precincts and polling places.

Source: S.L. 1977, ch. 379, § 1.

Cross-References.

Designation of polling places after change of wards, see § 40-52-07.

Designation of voting places under general election law, see § 16.1-04-02.

40-21-04. Annual election held in villages — Board of trustees to be inspectors. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-21-05. Compensation of inspectors, judges, and clerks at municipal elections.

Each inspector, judge, or clerk of any regular or special municipal election shall receive compensation as determined for election officials in section 16.1-05-05. The amounts determined to be due election officials at municipal elections shall be paid from the funds of the municipality holding the election. In the event a special municipal election is held on the same date as a statewide, districtwide, or countywide election, and if the same election officials perform services for both elections, the city shall not be required to pay the election officials, except for any extra officials necessary for such special municipal election.

Source: S.L. 1929, ch. 124, § 1; 1933, ch. 109, § 1; R.C. 1943, § 40-2105; S.L. 1949, ch. 264, § 1; 1957, ch. 157, § 2; 1957 Supp., § 40-2105; S.L. 1971, ch. 396, § 1; 1973, ch. 328, § 1; 1979, ch. 226, § 2.

40-21-06. Reference to party ballot or affiliation in petition of candidate for municipal office prohibited.

No reference may be made to a party ballot nor to the party affiliation of a candidate in a petition to be filed by or in behalf of a candidate for nomination to a public office in any incorporated city in this state.

Source: S.L. 1913, ch. 73, § 1; C.L. 1913, § 902; R.C. 1943, § 40-2106; S.L. 1967, ch. 323, § 136; 1995, ch. 391, § 1.

40-21-07. Petition for nomination of elective official in cities — Signatures required — Withdrawal of petition — Contents.

A candidate for any public office in an incorporated city may be nominated by filing with the city auditor, before four p.m. on the sixty-fourth day before the holding of the election, a petition signed by not less than ten percent of the number of qualified electors who voted for that office in the last city election. A candidate shall also file a statement of interests as required by section 16.1-09-02. If multiple candidates were elected to the office at the preceding city election at which the office was voted upon, the number of signatures must equal at least ten percent of the total votes cast for all candidates divided by the number of candidates that were to be elected to that office at that election. Qualified electors who sign a petition must reside within the ward or precinct in and for which that officer is to be elected, if the election is by wards, or within the corporate limits of the city, if the officer is elected at large. In cities operating under the commission system of government the required petition may be signed by the qualified electors at large residing within the city. If a petition is mailed, it must be in the possession of the city auditor before four p.m. on the sixty-fourth day before the holding of the election. However, no more than three hundred signatures may be required and the signatures may be on separate sheets of paper. Petitions must meet the specifications of nominating petitions pursuant to section 16.1-11-16. If a city election is not combined with a state or county election according to section 40-21-02, a candidate may be nominated by filing the required petition with the city auditor before four p.m. on the sixty-fourth day before the holding of the election. A candidate may withdraw the candidate’s nominating petition at any time before the applicable deadlines for filing nominating petitions provided for in this section. Nominating petitions required by this section may not be circulated or signed prior to January first preceding the election. Any signatures to a nominating petition obtained before that date may not be counted. A nominating petition for a special election may not be circulated or signed more than thirty days before the time when a petition for a special election must be filed. A candidate for city council may run for either the office of mayor or council member but not both in the same election. A candidate for the city commission may run for either the office of city commissioner or the office of president of the board of city commissioners but not both in the same election. A candidate may run for only one office in a city at any given election.

Source: S.L. 1913, ch. 73, § 2; C.L. 1913, § 903; R.C. 1943, § 40-2107; S.L. 1967, ch. 158, § 99; 1967, ch. 323, § 137; 1971, ch. 397, § 1; 1971, ch. 398, § 1; 1985, ch. 235, § 84; 1991, ch. 215, § 2; 1993, ch. 185, § 2; 1995, ch. 390, § 2; 1999, ch. 208, § 7; 2001, ch. 179, § 7; 2005, ch. 189, § 3; 2007, ch. 350, § 2; 2009, ch. 180, § 28; 2013, ch. 176, § 22.

Notes to Decisions

Computing the Filing Period.

For purposes of computing the number of days for filing of a petition prior to election, election day should be included and the day on which the petition was filed excluded. Phillips v. Johnson, 50 N.D. 781, 197 N.W. 879, 1924 N.D. LEXIS 31 (N.D. 1924).

40-21-08. Ballots in municipalities — Arrangement.

The auditor of the city shall place only the names of the persons nominated upon the ballot. The auditor shall arrange the offices upon the ballot in the order in which they are named in the statutes. The auditor shall determine the arrangement of the names of the candidates upon the ballot by conducting a drawing immediately after the candidate filing deadline on the sixty-fourth day before the election. The city auditor shall set the date, time, and location for conducting the drawing and shall give advance notice of the drawing to the candidates involved.

Source: S.L. 1913, ch. 73, § 2; C.L. 1913, § 903; R.C. 1943, § 40-2108; S.L. 1967, ch. 323, § 138; 1995, ch. 391, § 2; 1997, ch. 352, § 1; 2013, ch. 176, § 23.

40-21-09. Election districts in council cities — Division and consolidation by ordinance — Ballots to be kept separate by wards.

Each city operating under the council form of government in which council members are elected at large constitutes an election district or voting precinct, and in all other cities each ward constitutes an election district or voting precinct. Whenever the number of electors in any two or more contiguous wards does not exceed one hundred as determined by the number of votes cast at the last city election, the council, by ordinance, may consolidate those two or more wards into one precinct for voting purposes. In any city containing less than four hundred electors as determined by the number of votes cast at the last city election, the council, by ordinance, may consolidate all the wards of the city into one precinct for voting purposes. An ordinance dividing or consolidating wards must be passed and takes effect before the time of giving notice of the election. Wards and precincts established under this section constitute election districts for all state, county, and city elections. In city elections, separate ballot boxes and pollbooks must be provided and kept for each precinct. The terms “wards”, “precincts”, and “election districts” have the same meaning except where two or more wards are consolidated into one precinct for voting purposes or where one ward is divided into more than one precinct for voting purposes. This section does not prohibit the use of one building as the election polling place for more than one ward or the installation of electronic voting systems from separate wards in one building.

Source: S.L. 1887, ch. 73, art. 13, § 2; R.C. 1895, § 2252; S.L. 1897, ch. 40, § 5; R.C. 1899, § 2252; S.L. 1905, ch. 62, § 110; R.C. 1905, § 2743; S.L. 1911, ch. 65; C.L. 1913, § 3667; R.C. 1943, § 40-2109; S.L. 1967, ch. 158, § 100; 1971, ch. 399, § 1; 1979, ch. 445, § 1; 1991, ch. 440, § 19; 2003, ch. 171, § 32.

Cross-References.

Dividing cities into precincts, see § 16.1-04-01.

DECISIONS UNDER PRIOR LAW

Polling Place.

Under R.C. 1905, § 2743, it was the duty of the city authorities to provide for and operate a polling place at some place within each ward. Kerlin v. Devils Lake, 25 N.D. 207, 141 N.W. 756, 1913 N.D. LEXIS 119 (N.D. 1913).

40-21-10. Registration of voters.

The governing body of any city may require the registration of voters in any election held or conducted within the municipality at such time and place or places as the governing body may designate.

Source: S.L. 1887, ch. 73, art. 13, § 3; N.D. Const., § 121; R.C. 1895, § 2253; R.C. 1899, § 2253; S.L. 1905, ch. 62, § 111; R.C. 1905, § 2744; S.L. 1911, ch. 66; C.L. 1913, § 3668; R.C. 1943, § 40-2110; S.L. 1947, ch. 292, § 1; 1951, ch. 264, § 1; 1953, ch. 255, § 1; 1957 Supp., § 40-2110; S.L. 1967, ch. 323, § 139.

Collateral References.

Validity of college or university regulation of political or voter registration activity in student housing facilities, 39 A.L.R.4th 1137.

40-21-11. Clerks appointed to fill vacancies — Oath, powers, and duties of judges and clerks of municipal elections.

When necessary, the judges of election at a municipal election shall appoint clerks to fill vacancies. The judges and clerks of a municipal election shall take the same oath and have the same powers and authority as judges and clerks of general state elections.

Source: S.L. 1887, ch. 73, art. 13, § 5; R.C. 1895, § 2255; R.C. 1899, § 2255; S.L. 1905, ch. 62, § 113; R.C. 1905, § 2746; C.L. 1913, § 3670; R.C. 1943, § 40-2111.

Cross-References.

Election officers generally, see ch. 16.1-05.

40-21-12. Counting ballots — Returns — Canvass of returns by governing body of municipality. [Repealed]

Repealed by S.L. 2005, ch. 185, § 18.

40-21-13. Municipal elections to be governed by rules applicable to county elections — Absent voting.

The manner of conducting, voting at, keeping poll lists, and canvassing votes at municipal elections, recounts, and contests of the results of the elections is governed, as nearly as possible and except as otherwise provided in this chapter, by the laws of this state applicable to elections and contests in the case of county officers. Absent voters’ ballots must be available in municipal elections in accordance with chapter 16.1-07.

Source: S.L. 1887, ch. 73, art. 13, § 5; R.C. 1895, § 2255; R.C. 1899, § 2255; S.L. 1905, ch. 62, § 113; R.C. 1905, § 2746; C.L. 1913, § 3670; R.C. 1943, § 40-2113; S.L. 1965, ch. 160, § 17; 1983, ch. 82, § 80; 1991, ch. 212, § 5; 1997, ch. 201, § 3.

Cross-References.

Contest of elections, see ch. 16.1-16.

Notes to Decisions

Determining Mayoral Contest.

The district court has jurisdiction to hear and determine a contest over the election of the mayor of a city. Nelson v. Gass, 27 N.D. 357, 146 N.W. 537, 1914 N.D. LEXIS 46 (N.D. 1914).

40-21-14. City auditor to notify of election or appointments.

The city auditor, within five days after the result of an election is declared or the appointment of an officer is made within the municipality, shall notify each person elected or appointed to municipal office of that person’s election or appointment. Within the same period of time, the city auditor shall also notify the state supreme court of the election or the appointment of any municipal judge or alternate judge.

Source: S.L. 1887, ch. 73, art. 13, § 8; R.C. 1895, § 2257; R.C. 1899, § 2257; S.L. 1905, ch. 62, § 115; R.C. 1905, § 2748; C.L. 1913, § 3672; R.C. 1943, § 40-2114; S.L. 1967, ch. 323, § 141; 1987, ch. 375, § 15.

40-21-15. New election upon failure to elect.

If there is a failure to elect an officer required to be elected, the governing body of the municipality may order a new election.

Source: S.L. 1887, ch. 73, art. 13, § 9; R.C. 1895, § 2258; R.C. 1899, § 2258; S.L. 1905, ch. 62, § 116; R.C. 1905, § 2749; C.L. 1913, § 3673; R.C. 1943, § 40-2115.

40-21-16. Special elections conducted in same manner as general elections.

Special municipal elections to fill vacancies or for any other purpose must be held and conducted by the inspectors and judges of election of the several polling places in the same manner and the returns must be made in the same form and manner as at regular municipal elections.

Source: S.L. 1907, ch. 45, § 34; 1911, ch. 77, § 34; C.L. 1913, § 3804; R.C. 1943, § 40-2116; 2013, ch. 169, § 9.

40-21-16.1. City canvassing board — Composition.

For any city election not held in conjunction with a county election, the city canvassing board must be composed of the city auditor, city attorney, mayor or commission president, and two members of the city commission or council, or appointed replacements for any of these officials. An individual who served on an election board during the election may not serve as a representative on the canvassing board for that same election. The city canvassing board must be comprised of at least five members.

Source: S.L. 2011, ch. 294, § 4.

40-21-17. Highest number of votes elects in municipal election — Procedure on tie vote.

The person having the highest number of votes for any municipal office shall be declared elected to such office. In case of a tie vote in the election of any municipal officer, a recount must be conducted pursuant to section 16.1-16-01. If a recount results in a tie vote, the choice must be determined by a drawing of names in the presence of the governing body of the municipality and in a manner it directs. A candidate involved in a tie vote may withdraw the candidate’s name from consideration if the candidate is willing to sign a statement to that effect in the presence of and witnessed by the filing officer of the election. If no candidates remain, the office is to be filled according to the rules for filling an office when a vacancy exists.

Source: Pol. C. 1877, ch. 24, § 16; S.L. 1887, ch. 73, art. 13, § 7; R.C. 1895, §§ 2256, 2359; R.C. 1899, §§ 2256, 2359; S.L. 1905, ch. 62, § 114; R.C. 1905, §§ 2747, 2858; C.L. 1913, §§ 3671, 3855; S.L. 1915, ch. 268, § 1; 1925 Supp., § 3855; R.C. 1943, § 40-2117; S.L. 1983, ch. 239, § 6; 1997, ch. 201, § 4; 2005, ch. 191, § 26.

CHAPTER 40-22 Improvements by Special Assessment Method

40-22-01. Power of municipalities to defray expense of improvements by special assessments.

Any municipality, upon complying with the provisions of this chapter, may defray the expense of any or all of the following types of improvements by special assessments:

  1. The construction of a water supply system, or a sewerage system, or both, or any part thereof, or any improvement thereto or extension or replacement thereof, including the construction and erection of wells, intakes, pumping stations, settling basins, filtration plants, standpipes, water towers, reservoirs, water mains, sanitary and storm sewer mains and outlets, facilities for the treatment and disposal of sewage and other municipal, industrial, and domestic wastes, and all other appurtenances, contrivances, and structures used or useful for a complete water supply and sewerage system.
  2. The improvement of the municipal street system and any part thereof, including any one or more of the processes of acquisition, opening, widening, grading, graveling, paving, repaving, surfacing with tar, asphalt, bituminous, or other appropriate material, resurfacing, resealing, and repairing of any street, highway, avenue, alley, or public place within the municipality, and the construction and reconstruction of overhead pedestrian bridges, pedestrian tunnels, storm sewers, curbs and gutters, sidewalks, and service connections for water and other utilities, and the installation, operation, and maintenance of streetlights and all types of decorative streetlighting, including but not restricted to Christmas streetlighting decorations.
  3. The improvement of boulevards and other public places by the planting of trees, the construction of grass plots and the sowing of grass seed therein, and the maintenance and preservation of such improvements by the watering of such trees and grass, the cutting of such grass, and the trimming of such trees, or otherwise in any manner which may appear necessary and proper to the governing body of the municipality.
  4. The acquiring of the necessary land and easements and the construction of the necessary works, within and without the municipality, for flood protection of properties within the municipality.
  5. The acquiring or leasing of the necessary property and easements and the construction of parking lots, ramps, garages, and other facilities for motor vehicles.

In planning an improvement project of a type specified in any one of the foregoing subsections, the governing body may include in such plans any and all items of work and materials which in its judgment are necessary or reasonably incidental to the completion of an improvement project of such type.

Source: S.L. 1897, ch. 41, § 4; 1899, ch. 41, § 6; 1899, ch. 42, § 1; R.C. 1899, §§ 2326f, 2326u, 2326x; S.L. 1905, ch. 62, §§ 137, 141; R.C. 1905, §§ 2772, 2776; S.L. 1911, ch. 70, §§ 1, 3; 1913, ch. 74, §§ 1, 3; C.L. 1913, §§ 3698, 3702; R.C. 1943, § 40-2201; S.L. 1947, ch. 286, § 1; 1949, ch. 267, § 1; 1957 Supp., § 40-2201; S.L. 1959, ch. 306, § 1; 1963, ch. 293, § 1; 1967, ch. 329, § 1; 1971, ch. 400, § 1.

Cross-References.

Gravel surfacing streets by special assessment, see ch. 40-54.

Park commissioners, powers relating to improvements, see §§ 40-49-12, 40-49-18.

Parking facilities, special assessments for, see §§ 40-60-02, 40-61-03.1.

Residential paving projects, see ch. 40-56.

Notes to Decisions

Constitutionality.

It is within the power of the assembly of a state to create special taxing districts, and to charge the cost of a local improvement to the property in such districts, either according to valuation or to superficial area or frontage. Webster v. Fargo, 181 U.S. 394, 21 S. Ct. 623, 45 L. Ed. 912, 1901 U.S. LEXIS 1371 (U.S. 1901).

This chapter is constitutional. Fisher v. Minot, 188 N.W.2d 745, 1971 N.D. LEXIS 193 (N.D. 1971).

Basis of Assessment.

The fact that an assessment was spread uniformly over a large area is not conclusive that it was arbitrarily made or that there was no attempt to distribute the burden in proportion to the benefits. Minneapolis, St. Paul & Sault Ste. Marie Ry. v. City of Minot, 51 N.D. 313, 199 N.W. 875, 1924 N.D. LEXIS 180 (N.D. 1924).

The mere fact that the burden of the cost of a public improvement is divided between various properties in proportion to the front footage is not in itself proof of an arbitrary assessment or one made regardless of benefits. Minneapolis, St. Paul & Sault Ste. Marie Ry. v. City of Minot, 51 N.D. 313, 199 N.W. 875, 1924 N.D. LEXIS 180 (N.D. 1924).

Improvements may benefit property although the full fruition of such benefit is postponed or the present use of the property is of such character as not to be materially affected by such improvements. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

It was error to conclude N.D.C.C. § 40-22-15 gave a property owner no right to protest a city's creation of an improvement district because (1) the district included street repairs, utilities and other items not included in the description of a water or sewer improvement under N.D.C.C. § 40-22-01(1), and (2) it was unknown if the other repairs were incidental to water and sewer repairs, so it could not be concluded with certainty that the property owner's complaint did not state a claim upon which relief could be granted. Nandan, LLP v. City of Fargo, 2015 ND 37, 858 N.W.2d 892, 2015 N.D. LEXIS 42 (N.D. 2015).

Debt Limit.

The issuance of bonds by a city only for the purpose of funding special assessments does not create a debt within the meaning of the constitutional provision requiring a vote of electors to increase the debt limit, where the bonds are to be paid by funds to be collected by special assessment. Schieber v. Mohall, 66 N.D. 593, 268 N.W. 445, 1936 N.D. LEXIS 206 (N.D. 1936).

Deficiencies in Collection.

Permitting or requiring the city to assume certain deficiencies that may arise in the collection of assessments against private property does not invade the constitutional rights of general taxpayers of the city. Marks v. Mandan, 70 N.D. 474, 296 N.W. 39, 1941 N.D. LEXIS 191 (N.D. 1941).

Delegation of Powers.

The legislature, in the exercise of its general powers, may direct that the cost of local improvements be assessed upon property benefited, and may delegate this power to municipalities. Ellison v. La Moure, 30 N.D. 43, 151 N.W. 988, 1915 N.D. LEXIS 99 (N.D. 1915), writ of error dismissed, 245 U.S. 628, 38 S. Ct. 62, 62 L. Ed. 519, 1917 U.S. LEXIS 1703 (U.S. 1917); Boynton v. Board of City Comm'rs, 54 N.D. 795, 211 N.W. 441, 1926 N.D. LEXIS 87 (N.D. 1926).

Legislative Authority.

The legislature, in the exercise of its general powers, may direct, subject to constitutional restrictions, that the cost of local improvements be assessed upon property benefited, and this power may be delegated to municipalities. Fisher v. Minot, 188 N.W.2d 745, 1971 N.D. LEXIS 193 (N.D. 1971).

Park Commission Jurisdiction.

Where power to pave and levy special assessments for improvement of street alongside park is conferred on park commission, governing body of city is without authority to levy special assessment or authorize paving. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Parking Space.

The provision of parking space in the vicinity of a congested mercantile area is a special benefit to the businesses in that area and is sufficient to justify a special assessment. Northern Pac. Ry. v. Grand Forks, 73 N.W.2d 348, 1955 N.D. LEXIS 153 (N.D. 1955).

Railroad Property.

Railroad right-of-way property may be assessed for any special benefits accruing to it by reason of the laying of water mains or the construction of sewers. Minneapolis, St. Paul & Sault Ste. Marie Ry. v. City of Minot, 51 N.D. 313, 199 N.W. 875, 1924 N.D. LEXIS 180 (N.D. 1924).

Railroad property can properly be assessed for special improvements. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

Street Improvements.

The statutes granting cities the power to widen, pave, and otherwise improve streets and avenues are mandatory and not merely directory. The provisions prescribe the method of procedure to be followed and must be strictly observed. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

DECISIONS UNDER PRIOR LAW

Payment for Improvements.

A city was authorized to make improvements and to reimburse itself through special assessments but was not restricted so as to require it to contract for payment of such special improvements only out of the particular fund realized from special assessments. Pine Tree Lumber Co. v. City of Fargo, 12 N.D. 360, 96 N.W. 357 (1903), decided prior to the enactment of Session Laws 1905, Chapter 62 (see now N.D.C.C. § 40-22-36).

Collateral References.

Cotenancy as factor in determining representation of property owners in petition for public improvement, 3 A.L.R.2d 127.

Law Reviews.

Powers and Procedures of City and Village Governing Boards, 31 N.D. L. Rev. 137 (1955).

40-22-01.1. Restoration of property damaged in flood control or during a declared disaster or emergency — Special assessments for costs.

When any city has constructed any temporary emergency flood control protection devices or works to protect property located within a portion of a city from flood damage or expended funds for the protection of the city from flood or other peril under chapter 37-17.1 or otherwise, the city may maintain and remove material used in the construction of the temporary emergency flood control protection devices or works and the repair damages to land, buildings, or personal property caused by the operation of its equipment upon the property while in the process of installing or removing the temporary emergency flood protection systems. The city may create by resolution of its governing board a special assessment district encompassing the protected area. Special assessments against the property within the district must be imposed to cover the costs incurred by the city in constructing and maintaining the emergency flood protection devices or works and in removing the material used and in repairing the damages caused by the operation of equipment while installing or removing the temporary emergency flood protection systems. The amount to be assessed must be established by a resolution adopted by the governing board. Special assessments against any property in the district must be determined and made in the same manner as is provided for improvements by special assessments to the extent consistent herewith, and the certification and collection, including lien provisions, applicable to other special assessments are applicable hereto. Provided, however, that the provisions of sections 40-22-15, 40-22-17, and 40-22-18, relating to a resolution of necessity and protests against special assessments, sections 40-22-10, 40-22-11, and 40-22-29, relating to engineers’ reports, plans, and estimates, and section 40-22-19, relating to contract proposals, do not apply to special assessment districts created under this section.

Source: S.L. 1971, ch. 401, § 1; 2013, ch. 270, § 4.

40-22-01.2. Municipal policy providing special assessment determination methods for allocation of assessments among and within classes of property.

Within five months of this section becoming applicable to a city, the governing body of each city with a population exceeding ten thousand shall adopt written policies, after a public hearing for consideration of the policies, which will be applied for cost allocation among properties benefited by a special assessment project. Policies established under this section must provide separately the policy that will be applied for cost allocation for each kind of special assessment and the cost allocation method for residential, commercial, and agricultural property and for any property subject to separate or special assessment factors or assessment rates.

History. S.L. 2015, ch. 281, § 1, effective August 1, 2015.

Notes to Decisions

In General.

Special assessment commission determined that the improvements benefited the owner’s properties in the amount assessed to them under the city’s policy, and the assessments did not exceed the benefits; the city did not act arbitrarily, capriciously, or unreasonably in determining the benefits and assessments to the owner’s properties. Despite the city’s difficulty in explaining the determination of benefits, the assessments satisfied the statute. Holter v. City of Mandan, 2020 ND 152, 946 N.W.2d 524, 2020 N.D. LEXIS 169 (N.D. 2020), cert. denied, — U.S. —, 141 S. Ct. 1515, 209 L. Ed. 2d 254, 2021 U.S. LEXIS 1334 (U.S. 2021).

40-22-01.3. Power of municipality to defray expense of improvements — Infrastructure fee.

  1. Notwithstanding section 40-22-01, a municipality may levy and collect an infrastructure fee. The fee must replace a general special assessment on all property for payment of infrastructure maintenance costs through a utility bill issued by a municipality. The money collected under this subsection may not be used for any purpose other than infrastructure maintenance costs. If a municipality levies an infrastructure fee, the municipality also may levy and collect green field special assessments.
  2. As used in this section:
    1. “General special assessments” means special assessments levied for the purpose of maintaining existing roads and infrastructure and special assessments levied for the construction or repair of arterial roads and infrastructure that provide a benefit to the entire community.
    2. “Green field special assessments” means special assessments levied for infrastructure costs associated with the development of agricultural or undeveloped property.

Source: S.L. 2021, ch. 303, § 4, effective July 1, 2021.

40-22-02. Sewerage system — Establishment, maintenance, and alteration — Vote required.

The governing body of any municipality may establish, maintain, and alter a general system of sewerage for the municipality in such manner and under such regulations as it shall deem expedient and proper. No action shall be taken for the establishment of a sewerage system except upon the affirmative vote of two-thirds of the members of the governing body. When a sewerage system is established, all measures necessary for the construction of sewers as a part of that system may be taken by a vote of the majority of the governing body.

Source: S.L. 1887, ch. 73, art. 16, § 1; 1893, ch. 36, § 1; R.C. 1895, § 2315; S.L. 1899, ch. 41, § 1; R.C. 1899, §§ 2315, 2326a; S.L. 1905, ch. 62, § 136; R.C. 1905, § 2771; S.L. 1907, ch. 229, § 1; C.L. 1913, § 3697; R.C. 1943, § 40-2202.

Notes to Decisions

Liability of City for Damages.

In constructing a sewer system, a city acts in its governmental capacity and the taking or damaging of private property occasioned thereby is a taking or damaging for public use and, where the right to take is acquired by contract, the right of the property owner to damages is satisfied by the contract and a later purchaser of the property has no right to damages arising from overflow of the sewer. Hamilton v. Bismarck, 71 N.D. 321, 300 N.W. 631, 1941 N.D. LEXIS 173 (N.D. 1941).

By casting its sewage into a river without proper and sufficient treatment over a long period of time, a city violates its duty and cannot rely on its immunity to protect it from responding in damages. Messer v. Dickinson, 71 N.D. 568, 3 N.W.2d 241, 1942 N.D. LEXIS 92 (N.D. 1942); Kinnischtzke v. City of Glen Ullin, 79 N.D. 495, 57 N.W.2d 588, 1953 N.D. LEXIS 57 (N.D. 1953).

Although a city has the legislative authority to empty its sewage into a river, that authority is limited by the duty resting upon the city to exercise its authority in a reasonable manner and to take all reasonable precautions against damaging private property. Messer v. Dickinson, 71 N.D. 568, 3 N.W.2d 241, 1942 N.D. LEXIS 92 (N.D. 1942); Conlon v. City of Dickinson, 72 N.D. 190, 5 N.W.2d 411, 1942 N.D. LEXIS 130 (N.D. 1942).

Liberal Construction.

The power to construct and maintain sewers should receive a liberal construction in favor of the municipality. Marks v. Mandan, 70 N.D. 474, 296 N.W. 39, 1941 N.D. LEXIS 191 (N.D. 1941).

Necessity of Sewers, Determination.

Generally, the city councils are the sole judges of the necessity of sewers and of the efficiency, durability, and adaptability of those already in existence. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

Prerequisites to Special Assessment.

The findings and the declaration of a council, which are based upon and which refer to plans, specifications, and estimates, are a prerequisite to the levying of a special assessment for the erection of a standpipe. Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

40-22-03. Acquiring property for sewers, water mains, and water supply beyond corporate limits.

When it is necessary to conduct the sewage of a municipality beyond the municipal limits or to acquire a supply of water beyond such limits and to construct mains or aqueducts to conduct such water to the municipal limits, the governing body, by grant, purchase, or condemnation proceedings, may acquire private property over which to construct the sewer, or upon and over which to establish facilities for obtaining and storing such water supply and aqueducts or mains for conducting the same to the corporate limits. Public property may likewise be acquired for such purposes by grant or purchase from the government or public corporation owning the same. The cost of acquiring such property and of building such sewer or other facilities upon or over the property may be included in the cost of construction or acquisition of a municipal waterworks or sewerage system and in the special assessments levied therefor, or the entirety of such a project may be completed as an improvement to an existing waterworks or sewage system and special assessments may be levied therefor in accordance with the provisions of this title.

Source: S.L. 1887, ch. 73, art. 16, § 1; 1893, ch. 36, § 1; R.C. 1895, § 2315; S.L. 1899, ch. 41, § 1; R.C. 1899, §§ 2315, 2326a; S.L. 1905, ch. 62, § 136; R.C. 1905, § 2771; S.L. 1907, ch. 229, § 1; C.L. 1913, § 3697; R.C. 1943, § 40-2203; S.L. 1951, ch. 263, § 1; 1957 Supp., § 40-2203.

Notes to Decisions

Nuisance.

This statute does not authorize the creation and maintenance of a nuisance by the municipality. Kinnischtzke v. City of Glen Ullin, 79 N.D. 495, 57 N.W.2d 588, 1953 N.D. LEXIS 57 (N.D. 1953).

Collateral References.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility, 42 A.L.R.3d 426.

40-22-04. Discharge of sewage — Regulations governing. [Repealed]

Repealed by S.L. 1975, ch. 575, § 2.

40-22-05. Condemnation of land and rights of way for special improvements — Taking of possession — Trial — Appeal — Vacation of judgment.

Whenever property required to make any improvement authorized by this chapter is to be taken by condemnation proceedings, the court, upon request by resolution of the governing body of the municipality making such improvement, shall call a special term of court for the trial of the proceedings and may summon a jury for the trial whenever necessary. The proceedings shall be instituted and prosecuted in accordance with the provisions of chapter 32-15, except that when the interest sought to be acquired is a right of way for the opening, laying out, widening, or enlargement of any street, highway, avenue, boulevard, or alley in the municipality, or for the laying of any main, pipe, ditch, canal, aqueduct, or flume for conducting water, storm water, or sewage, whether within or without the municipality, the municipality may make an offer to purchase the right of way and may deposit the amount of the offer with the clerk of the district court of the county wherein the right of way is located, and may thereupon take possession of the right of way forthwith. The offer shall be made by resolution of the governing body of the municipality, a copy of which shall be attached to the complaint filed with said clerk of court in accordance with section 32-15-18. The clerk shall immediately notify the owner or owners of the land wherein the right of way is located of the deposit, by causing a notice to be appended to the summons when served and published in said proceedings as provided in the North Dakota Rules of Civil Procedure, stating the amount deposited or agreed in the resolution to be deposited. The owner may thereupon appeal to the court by filing an answer to the complaint in the manner provided in the North Dakota Rules of Civil Procedure, and may have a jury trial, unless a jury be waived, to determine the damages. However, upon due proof of the service of said notice and summons and upon deposit of the aggregate sum agreed in said resolution, the court may without further notice make and enter an order determining the municipality to be entitled to take immediate possession of the right of way. If under laws of the United States proceedings for the acquisition of any right of way are required to be instituted in or removed to a federal court, the proceedings may be taken in that court in the same manner and with the same effect as provided in this section and the clerk of the district court of the county in which the right of way is located shall perform any and all of the duties set forth in this section, if directed to do so by the federal court. The proceedings shall be determined as speedily as practicable. An appeal from a judgment in the condemnation proceedings shall be taken within sixty days after the entry of the judgment, and the appeal shall be given preference by the supreme court over all other civil cases except election contests. No final judgment in the condemnation proceedings awarding damages to property used by a municipality for street, sewer, or other purposes shall be vacated or set aside if the municipality shall pay to the defendant, or shall pay into court for the defendant, in cash, the amount so awarded. The municipality may levy special assessments to pay all or any part of the judgment and at the time of the next annual tax levy may levy a general tax for the payment of the part of the judgment as is not to be paid by special assessment. For the purpose of providing funds for the payment of the judgment, or for the deposit of the amount offered for purchase of a right of way as provided above, the municipality may issue warrants on the fund of the improvement district as provided in section 40-24-19, in anticipation of the levy and collection of special assessments and of any taxes or revenues to be appropriated to the fund in accordance with the provisions of this title. The warrants may be issued upon the commencement of the condemnation proceedings or at any time thereafter. Upon the failure of the municipality to make payment in accordance with this section, the judgment in the condemnation proceedings may be vacated.

Source: S.L. 1905, ch. 62, § 174; R.C. 1905, § 2812; C.L. 1913, § 3737; R.C. 1943, § 40-2205; S.L. 1961, ch. 274, § 1; 1981, ch. 91, § 31.

Notes to Decisions

Manner of Payment.

Fact that the city did make and levy a special assessment within the time required and did issue city warrants therefor did not grant to it any authority to evade the mandatory constitutional provision that payment in eminent domain proceedings must be made in money, either in court or to the owner. City of Minot v. Olson, 42 N.D. 246, 173 N.W. 458, 1919 N.D. LEXIS 156 (N.D. 1919).

Pedestrian Malls.

City exercising authority to create pedestrian malls pursuant to N.D.C.C. § 40-62-01 must initiate eminent domain proceedings to compensate abutting property owners since those owners are presumed to hold the fee ownership in the street. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Collateral References.

Off-street public parking facilities, 8 A.L.R.2d 373.

Power to condemn abutting owner’s right of access to limited access highway or street, 43 A.L.R.2d 1072.

Validity, construction, and effect, of statutes authorizing eminent domain for urban redevelopment by private enterprise, 44 A.L.R.2d 1414, 1439.

Abutting owner’s right to damages for limitation of access caused by conversion of conventional road into limited-access highway, 43 A.L.R.2d 1072; 42 A.L.R.3d 13; 42 A.L.R.3d 148.

Measure and elements of damage for limitation of access caused by conversion of conventional road into limited-access highway, 42 A.L.R.3d 148.

Industrial park or similar development as public use justifying condemnation of private property, 62 A.L.R.4th 1183.

Notes to Decisions

Quick take provision.

Unpublished decision: District court did not err in holding that the city was authorized to use quick-take eminent domain procedures under N.D.C.C. § 40-22-05 for its sewage improvement project because the phrase “right of way,” as used in N.D. Const. art. I, § 16, and § 40-22-05 was not restricted or limited only to highway purposes and incidental uses. City of W. Fargo v. McAllister, 2022 ND 94, 2022 N.D. LEXIS 90 (N.D. 2022).

40-22-06. Agreement with state agency, county, water resource district, or federal agency for certain improvements.

Any municipality in this state, through its governing body, may enter into an agreement with any state agency, the board of county commissioners, or water resource board of the county in which the municipality is located, or a joint water resource board which jurisdiction includes the municipality, or any federal agency, or any combination thereof, for the improvement of streets, sewers, water mains, flood control projects, or of any of such facilities, under the terms of which the contract for such work is to be let by the state agency, the board of county commissioners, water resource board, joint water resource board, the federal agency, or any combination thereof, and for this purpose may create a special improvement district or districts. No such agreement may be entered into until and unless the governing body certifies that it has obtained authority in accordance with this section to issue improvement warrants to finance the amount that the municipality will be obligated to pay thereunder, over and above the amount of any bonds which have been voted and any other funds which are on hand and properly available for such purpose. If any portion of the cost is to be paid by the levy of special assessments, the governing body shall by resolution declare the necessity of the improvement, setting forth its general nature, the approximate amount or fraction of the cost which the municipality will be obligated to pay under the agreement, and the fact that this amount, or such lesser amount as the governing body may specify, is proposed to be paid by the levy of special assessments upon property determined to be benefited by the improvement. Any portion of the cost for which the municipality is obligated and which is not assessed upon benefited property or paid from other funds may be agreed to be paid by general taxation of all the taxable property in the municipality, if approval for the incurring of such debt is obtained and provision for the payment thereof is made in accordance with section 40-24-10. The resolution of necessity must be published once each week for two consecutive weeks in the official newspaper of the municipality and protests may be filed and their sufficiency to bar the improvement must be determined in accordance with sections 40-22-16 through 40-22-18. However, if under the terms of the resolution of necessity the portion of the cost of the project to be assessed upon benefited property does not exceed twenty-five percent of the total cost to be paid by the state agency, county, water resource board, joint water resource board, federal agency, and municipality, written protests by the owners of seventy-five percent of the property liable to be assessed for the improvement shall be required to bar further proceedings with reference thereto. At any time after the period for filing protests has expired and the protests filed, if any, have been heard and determined to be insufficient, the governing body may issue warrants on the fund of the improvement in the total amount for which the municipality is obligated under the agreement, and may cause to be certified to the special assessment commission that portion of the cost to be borne by the property owners within the district, and the assessment of such amount may be made and such warrants may be issued as in other cases provided for in chapters 40-23 and 40-24.

Source: S.L. 1941, ch. 203, § 1; R.C. 1943, § 40-2206; S.L. 1963, ch. 294, § 1; 1967, ch. 330, § 1; 1987, ch. 492, § 1; 1995, ch. 443, § 5.

Notes to Decisions

Constitutionality.

Exclusion of property in urban renewal area from special assessment district created to provide funds for highway overpass does not violate article X, section 5 of the North Dakota Constitution, since that section does not relate to local assessments but only to general taxation. Chernick v. Grand Forks, 210 N.W.2d 73, 1973 N.D. LEXIS 107 (N.D. 1973).

Authorized.

Frontage roads, drain improvements, and land for a drain were authorized improvements under the adopted resolution of necessity and the city did not fail to correctly interpret the law, nor did it abuse its discretion by including the costs of these improvements in the total cost of the project. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

Improvement of Streets.

Construction of an overpass was an “improvement of streets” as used in this section and therefore city council did not exceed its jurisdiction in creating special assessment district for its financing. Parker Hotel Co. v. Grand Forks, 177 N.W.2d 764, 1970 N.D. LEXIS 103 (N.D. 1970).

Right to Protest.

Property owner could not protest a project under an agreement between a city and a water district, under N.D.C.C. § 40-22-06, because, under the agreement, the city had to bid out the project and enter into a construction contract, so the city did not have to adopt a resolution of necessity. Nandan, LLP v. City of Fargo, 2015 ND 37, 858 N.W.2d 892, 2015 N.D. LEXIS 42 (N.D. 2015).

40-22-06.1. Cities with population of over ten thousand may enter into agreement with highway department or county for certain improvements. [Repealed]

Repealed by S.L. 1963, ch. 294, § 2.

40-22-07. Dispensing with preliminary requirements in making improvements in conjunction with highway department or county. [Repealed]

Repealed by S.L. 1963, ch. 294, § 2.

40-22-08. Improvement districts to be created.

For the purpose of making an improvement project of one of the types specified in section 40-22-01 and defraying the cost thereof by special assessments, a municipality may create water districts, sewer districts, water and sewer districts, street improvement districts, boulevard improvement districts, flood protection districts, and parking districts, and may extend any such district when necessary. The appropriate special improvement district may be created by ordinance or resolution. The district shall be designated by a name appropriate to the type of improvement for the making of which it is created, and by a number distinguishing it from other improvement districts. Nothing herein, however, shall prevent a municipality from making and financing any improvement and levying special assessments therefor under any alternate procedure set forth in this title.

Source: S.L. 1897, ch. 41, §§ 1, 4, 8; 1899, ch. 42, §§ 1, 4; R.C. 1899, §§ 2326f, 2326u, 2326x; S.L. 1905, ch. 62, §§ 137, 141; R.C. 1905, §§ 2772, 2776; S.L. 1911, ch. 70, §§ 1, 3; 1913, ch. 74, §§ 1, 3; C.L. 1913, §§ 3698, 3702; R.C. 1943, § 40-2208; S.L. 1949, ch. 267, § 2; 1957 Supp., § 40-2208; S.L. 1959, ch. 306, § 2.

Cross-References.

Validation of proceedings taken prior to March 7, 1955 by cities over ten thousand for creation of improvement districts, notwithstanding certain defects, see § 1-06-06.

Notes to Decisions

Constitutionality.

In creation of special assessment district to provide funds for highway overpass, inclusion of property which was to be “specially benefited” from overpass did not create an arbitrary classification and neither unreasonably nor invidiously discriminated against those property owners included in the district; exclusion of property in urban renewal area adjacent to proposed overpass did not invalidate special assessment district. Chernick v. Grand Forks, 210 N.W.2d 73, 1973 N.D. LEXIS 107 (N.D. 1973).

Exclusion of property in urban renewal area from special assessment district created to provide funds for highway overpass does not violate article X, section 5 of the North Dakota Constitution, since that section does not relate to local assessments but only to general taxation. Chernick v. Grand Forks, 210 N.W.2d 73, 1973 N.D. LEXIS 107 (N.D. 1973).

Amount of Benefits.

The amount of benefits resulting from the improvement is a question of fact, and, assuming that there has been a hearing thereon, the decision of the special assessment board is final. Ellison v. La Moure, 30 N.D. 43, 151 N.W. 988, 1915 N.D. LEXIS 99 (N.D. 1915), writ of error dismissed, 245 U.S. 628, 38 S. Ct. 62, 62 L. Ed. 519, 1917 U.S. LEXIS 1703 (U.S. 1917).

Discretion of City Commissioners.

The size and the form of a special assessment district is a matter to be decided entirely by the city council, after consultation with the city engineer. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

The city council or commission is authorized to determine upon the necessity for the construction or alteration of sewers in the city. McKenzie v. Mandan, 35 N.D. 107, 160 N.W. 852, 1916 N.D. LEXIS 175 (N.D. 1916).

The city authorities have a wide discretion in determining the area of a proposed improvement district, but it is contemplated that they should exercise judgment and discretion in so doing. Merchants Nat'l Bank v. Devils Lake, 42 N.D. 445, 173 N.W. 748, 1919 N.D. LEXIS 159 (N.D. 1919).

The discretion of the board of city commissioners as to the paving of streets is not subject to restraint by a court of equity. Hufford v. Flynn, 48 N.D. 33, 182 N.W. 941, 1921 N.D. LEXIS 3 (N.D. 1921).

Extension of District.

Where special improvement warrant had been issued, bonds had been sold, and improvement project substantially completed prior to annexation of other property into the district, there was no jurisdiction over the newly included property, and any special assessment against such property was void. Dakota Land Co. v. Fargo, 224 N.W.2d 810, 1974 N.D. LEXIS 141 (N.D. 1974).

Jurisdiction.

Property outside the limits of an improvement district is not subject to special assessment. Dakota Land Co. v. Fargo, 224 N.W.2d 810, 1974 N.D. LEXIS 141 (N.D. 1974).

Jurisdictional Prerequisite.

Before a public improvement which is to be paid for by special assessments may be undertaken, an improvement district must be created as a jurisdictional prerequisite. Merchants Nat'l Bank v. Devils Lake, 42 N.D. 445, 173 N.W. 748, 1919 N.D. LEXIS 159 (N.D. 1919); Boynton v. Board of City Comm'rs, 54 N.D. 795, 211 N.W. 441, 1926 N.D. LEXIS 87 (N.D. 1926).

If a special assessment district is not created before the making of a public improvement, special assessments levied for the payment of the improvement are invalid. Minneapolis, St. Paul & Sault Ste. Marie Ry. v. City of Minot, 51 N.D. 313, 199 N.W. 875, 1924 N.D. LEXIS 180 (N.D. 1924).

The statutes granting cities the power to widen, pave, and otherwise improve streets and avenues are mandatory and not merely directory. The provisions prescribe the method of procedure to be followed and must be strictly observed. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Purposes of District.

Where the improvement is made for two or more of the purposes specified, such purposes must be common to all the areas embraced in the district in order to maintain its singleness and unity. Rybnicek v. Mandan, 93 N.W.2d 650, 1958 N.D. LEXIS 104, 1958 N.D. LEXIS 105 (N.D. 1958).

Where an improvement district embraces two or more of the purposes specified in this statute, the term “improvement” as used therein and in N.D.C.C. §§ 40-22-17 and 40-22-18, is not limited to one purpose, but includes all of the purposes for which the improvement district is created. Rybnicek v. Mandan, 93 N.W.2d 650, 1958 N.D. LEXIS 104, 1958 N.D. LEXIS 105 (N.D. 1958).

Street Adjacent to Park.

Governing body has no authority to levy special assessments or to authorize the paving of streets bordering upon and adjacent to a city park where power to pave and levy special assessments is conferred on park commission. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Sufficient Resolution.

The statute requires a resolution that refers intelligently to the plans and specifications, and a resolution that merely directs the city engineer to prepare plans and specifications is insufficient to comply with the statute. Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

Types of Districts.

This statute authorizes the cities to create paving districts. Will v. Bismarck, 36 N.D. 570, 163 N.W. 550, 1917 N.D. LEXIS 213 (N.D. 1917).

The city council or board of city commissioners has authority to create sewer, water main, and waterworks districts. Hufford v. Flynn, 48 N.D. 33, 182 N.W. 941, 1921 N.D. LEXIS 3 (N.D. 1921).

40-22-09. Size and form of improvement districts — Regulations governing.

Any improvement district created by a municipality may embrace two or more separate property areas. Each improvement district shall be of such size and form as to include all properties which in the judgment of the governing body, after consultation with the engineer planning the improvement, will be benefited by the construction of the improvement project which is proposed to be made in or for such district, or by any portion or portions of such project. A single district may be created for an improvement of the type specified in any one of the subsections of section 40-22-01, notwithstanding any lack of uniformity among the types, items, or quantities of work and materials to be used at particular locations throughout the district. The jurisdiction of a municipality to make, finance, and assess the cost of any improvement project shall not be impaired by any lack of commonness, unity, or singleness of the location, purpose, or character of the improvement, or by the fact that any one or more of the properties included in the district is subsequently determined not to be benefited by the improvement, or by a particular portion thereof, and is not assessed therefor. There may be omitted from a water or sewer district, in the discretion of the governing body, properties within the corporate limits which are benefited by the improvement therein but do not abut upon a water or sewer main, without prejudice to the right and power of the municipality subsequently to assess such properties to the extent and in the manner permitted by law. The governing body may by resolution enlarge an improvement district in which an improvement is proposed or under construction upon receipt of a petition therefor signed by the owners of three-fourths of the area to be added to the district.

Source: S.L. 1897, ch. 41, § 5; 1899, ch. 41, § 7; R.C. 1899, §§ 2326g, 2326y; S.L. 1905, ch. 62, §§ 138 to 140; R.C. 1905, §§ 2773 to 2775; S.L. 1911, ch. 70, § 2; 1913, ch. 74, § 2; C.L. 1913, §§ 3699 to 3701; R.C. 1943, § 40-2209; S.L. 1949, ch. 267, § 3; 1957 Supp., § 40-2209; S.L. 1959, ch. 306, § 3; 1971, ch. 402, § 1.

Notes to Decisions

Constitutionality.

In creation of special assessment district to provide funds for highway overpass, inclusion of property which was to be “specially benefited” from overpass did not create an arbitrary classification and neither unreasonably nor invidiously discriminated against those property owners included in the district; exclusion of property in urban renewal area adjacent to proposed overpass did not invalidate special assessment district. Chernick v. Grand Forks, 210 N.W.2d 73, 1973 N.D. LEXIS 107 (N.D. 1973).

Exclusion of property in urban renewal area from special assessment district created to provide funds for highway overpass does not violate article X, section 5 of the North Dakota Constitution since that section does not relate to local assessments but only to general taxation. Chernick v. Grand Forks, 210 N.W.2d 73, 1973 N.D. LEXIS 107 (N.D. 1973).

Discretion of Municipal Authorities.

The size and the form of a special assessment district is a matter to be decided entirely by the city council, after consultation with the city engineer. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

The city council or board of city commissioners should exercise judgment and discretion in determining the area of a proposed improvement district. Merchants Nat'l Bank v. Devils Lake, 42 N.D. 445, 173 N.W. 748, 1919 N.D. LEXIS 159 (N.D. 1919).

Error in Determination.

The fact that there may have been an error on the part of the special assessment commission as to the amount of any benefit or assessment is no ground for invalidating the entire proceeding. Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

Finality of Determination.

A court of equity will not interfere with the governing board’s determination of the size and form of an improvement district, in the absence of fraud, bad faith, arbitrary action, or abuse of discretion. Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

This section has expressly conferred upon the governing body of every city the legislative power and discretion to determine the size, form, and boundaries of an improvement district, and the judiciary will not interfere with the governing board’s legislative determination of the size, form, and boundaries of an improvement district in the absence of jurisdictional defects, fraud, or arbitrary action. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Method of Assessment.

Special assessment against property in parking districts conformed to statute where multilevel parking ramp constituted special benefit to each parcel of land within the district by providing off-street parking and developing and improving the economic base of the area; where the assessment was based upon a formula which took into account the proportionate needs of each parcel, the existing parking provided by that parcel and the nature and size of the business being conducted thereon, and where the assessment against each parcel was not in excess of the benefit derived from the improvement as properly determined by an impartial administrative agency. Patterson v. Bismarck, 212 N.W.2d 374, 1973 N.D. LEXIS 131 (N.D. 1973).

Protests.

A special-assessment (street-improvement) district which included only property lying within a single, continuous, closed boundary, with streets and avenues that formed a contiguous and interconnecting network, was one single area and written protests by less than a majority of the property owners did not meet the requirements of N.D.C.C. § 40-22-18 and would not bar improvements. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Separate Property Area.

The term “separate property area” as used in this section and N.D.C.C. § 40-22-18 means “a geographically separate or noncontiguous area”. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

40-22-10. Engineer’s report required — Contents.

  1. After a special improvement district has been created, the governing body of a municipality, if the governing body deems it necessary to make any of the improvements set out in section 40-22-01 in the manner provided in this chapter, shall direct the engineer for the municipality, or some other competent engineer if the municipality does not have a competent municipal engineer, to prepare a report as to the general nature, purpose, and feasibility of the proposed improvement and an estimate of the probable cost of the improvement, including:
    1. A separate statement of the estimated cost of the work for which proposals must be advertised under section 40-22-19; and
    2. A separate statement of all other items of estimated cost not included under subsection 1 which are anticipated to be included in the cost of the improvement under sections 40-23-05 and 40-23.1-04.
  2. An engineer’s report under this section also must include information describing how the special assessment district was created including any considerations as to which properties are determined to receive a benefit from the proposed improvement.

Source: S.L. 1887, ch. 73, art. 16, § 2; 1893, ch. 36, § 1; R.C. 1895, § 2316; S.L. 1899, ch. 41, § 2; R.C. 1899, §§ 2316, 2326b; S.L. 1905, ch. 62, § 142; R.C. 1905, § 2777; S.L. 1911, ch. 70, § 4; 1913, ch. 74, § 4; C.L. 1913, § 3703; R.C. 1943, § 40-2210; S.L. 1971, ch. 402, § 2; 2003, ch. 345, § 1; 2021, ch. 305, § 1, effective August 1, 2021.

Notes to Decisions

Authorized.

Frontage roads, drain improvements, and land for a drain were authorized improvements under the adopted resolution of necessity and the city did not fail to correctly interpret the law, nor did it abuse its discretion by including the costs of these improvements in the total cost of the project. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-22-11. Approval of plans, specifications, and estimates — Approval establishes grade of street.

At any time after receiving the engineer’s report required by section 40-22-10, the governing body may direct the engineer to prepare detailed plans and specifications for construction of the improvement. The plans and specifications shall be approved by a resolution of the governing body of the municipality. If the plans and specifications include the establishment of the grade of a street and such grade has not been established previously by ordinance, the resolution approving the plans, specifications, and estimates shall constitute an establishment of the grade.

Source: S.L. 1887, ch. 73, art. 16, § 2; 1893, ch. 36, § 1; R.C. 1895, § 2316; S.L. 1899, ch. 41, § 2; R.C. 1899, §§ 2316, 2326b; S.L. 1905, ch. 62, § 142; R.C. 1905, § 2777; S.L. 1911, ch. 70, § 4; 1913, ch. 74, § 4; C.L. 1913, § 3703; R.C. 1943, § 40-2211; S.L. 1971, ch. 402, § 3.

40-22-12. Requirements of plans, specifications, and estimates when improvement is paving or beautification of streets.

If an improvement to be financed by special assessments consists in paving or repaving any street, alley, or public place, the governing body of the municipality may require the plans, specifications, and estimates for the improvement to be made for one kind of pavement or several different kinds of pavement as it may deem advisable. If the contemplated improvement consists of planting trees, constructing grass plots, sowing grass seed thereon, or otherwise parking or beautifying any of the streets, highways, avenues, alleys, lanes, or other public grounds within the municipal limits, the governing body may require the plans, specifications, and estimates to show the probable costs of making, constructing, or maintaining such improvements or any of them.

Source: S.L. 1887, ch. 73, art. 16, § 2; 1893, ch. 36, § 1; R.C. 1895, § 2316; S.L. 1899, ch. 41, § 2; R.C. 1899, §§ 2316, 2326b; S.L. 1905, ch. 62, § 142; R.C. 1905, § 2777; S.L. 1911, ch. 70, § 4; 1913, ch. 74, § 4; C.L. 1913, § 3703; R.C. 1943, § 40-2212; S.L. 1949, ch. 268, § 1; 1957 Supp., § 40-2212.

40-22-13. Municipal engineer to retain copy of plans, specifications, and estimates — Sale of copies.

The engineer acting for the municipality shall retain a copy of the plans, specifications, and estimates which have been prepared for any improvement on file in the engineer’s office. The engineer shall furnish to any person applying therefor copies of the same, and, if the engineer is an officer of the municipality, the engineer may charge one dollar an hour for the time necessarily employed in making such copies.

Source: S.L. 1887, ch. 73, art. 16, § 2; 1893, ch. 36, § 1; R.C. 1895, § 2316; S.L. 1899, ch. 41, § 2; R.C. 1899, §§ 2316, 2326b; S.L. 1905, ch. 62, § 142; R.C. 1905, § 2777; S.L. 1911, ch. 70, § 4; 1913, ch. 74, § 4; C.L. 1913, § 3703; R.C. 1943, § 40-2213.

40-22-14. Plans, specifications, and estimates filed in office of city auditor.

The plans, specifications, and estimates shall be the property of the municipality and shall be filed in the office of the city auditor and shall remain on file in the city auditor’s office subject to inspection by any interested person.

Source: S.L. 1887, ch. 73, art. 16, § 2; 1893, ch. 36, § 1; R.C. 1895, § 2316; S.L. 1899, ch. 41, § 2; R.C. 1899, §§ 2316, 2326b; S.L. 1905, ch. 62, § 142; R.C. 1905, § 2777; S.L. 1911, ch. 70, § 4; 1913, ch. 74, § 4; C.L. 1913, § 3703; R.C. 1943, § 40-2214; S.L. 1967, ch. 323, § 142.

40-22-15. Resolution declaring improvements necessary — Exception for sewer and water improvements — Contents of resolution — Publication of resolution.

After the engineer’s report required by section 40-22-10 has been filed and approved, the governing body of the municipality, by resolution, shall declare that it is necessary to make the improvements described therein. However, a resolution is not required if the improvement constitutes a water or sewer improvement as described in subsection 1 of section 40-22-01, nor if the governing body determines by resolution that a written petition for the improvement, signed by the owners of a majority of the area of the property included within the district, has been received. The resolution must refer intelligibly to the engineer’s report and include a map of the municipality showing the proposed improvement districts. The resolution must then be published once each week for two consecutive weeks in the official newspaper of the municipality.

Source: S.L. 1905, ch. 62, § 143; R.C. 1905, § 2778; S.L. 1907, ch. 46, § 3; C.L. 1913, § 3704; S.L. 1925, ch. 212, § 1; 1925 Supp., § 3704; S.L. 1927, ch. 182, § 1; R.C. 1943, § 40-2215; S.L. 1949, ch. 268, § 2; 1957 Supp., § 40-2215; S.L. 1971, ch. 402, § 4; 1975, ch. 375, § 1; 1981, ch. 415, § 1; 1985, ch. 458, § 1.

Notes to Decisions

Mandatory Requirement.

The provision of this section requiring the passage of a resolution of necessity by the governing body of a city is mandatory and an indispensable prerequisite to further proceedings in connection with the creation of a public improvement to be paid for in whole or in part by special assessments. Mitchell v. Parshall, 108 N.W.2d 12, 1961 N.D. LEXIS 65 (N.D. 1961).

Notice.

Notice by publication of resolution of necessity for establishment of parking improvement district did not deprive property owners of constitutional rights. Fisher v. Minot, 188 N.W.2d 745, 1971 N.D. LEXIS 193 (N.D. 1971).

Publication of resolution declaring necessity for formation of special assessment district for parking improvement, was sufficient under due process clause; personal service on property owners within district was not necessary since all property affected was within two blocks of the improvement and owners had actual knowledge of the proposed improvement. Patterson v. Bismarck, 212 N.W.2d 374, 1973 N.D. LEXIS 131 (N.D. 1973).

City’s inadvertent failure to include a complete map of proposed street improvement project when publishing its second notice of resolution of necessity did not violate property owners’ due process rights. Serenko v. City of Wilton, 1999 ND 88, 593 N.W.2d 368, 1999 N.D. LEXIS 122 (N.D. 1999).

Because the landowners did not commence their action to invalidate assessments on the grounds that the city had not complied with the notice requirements of N.D.C.C. § 40-22-15 when creating an improvement district within 30 days of the adoption of the resolution awarding the sale of warrants, N.D.C.C. § 40-22-43 barred the action unless the proceedings violated a constitutional limitation or restriction. Paving Dist. 476 Grp., SPCM, LLC v. City of Minot, 2017 ND 176, 898 N.W.2d 418, 2017 N.D. LEXIS 167 (N.D. 2017).

Power to Lay a Special Assessment.

The foundation of the power to lay a special assessment for a local improvement of any character, including the improvement of a city street, is the benefit which the object of the assessment confers on the owner of the abutting property, or the owners of property in the assessment district, which is different from the general benefit which the owners enjoy in common with other inhabitants or citizens of the municipal corporation. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

It was error to conclude N.D.C.C. § 40-22-15 gave a property owner no right to protest a city's creation of an improvement district because (1) the district included street repairs, utilities and other items not included in the description of a water or sewer improvement under N.D.C.C. § 40-22-01(1), and (2) it was unknown if the other repairs were incidental to water and sewer repairs, so it could not be concluded with certainty that the property owner's complaint did not state a claim upon which relief could be granted. Nandan, LLP v. City of Fargo, 2015 ND 37, 858 N.W.2d 892, 2015 N.D. LEXIS 42 (N.D. 2015).

Sewer.

“Sewer” as used in this section refers to both storm sewers and sanitary sewers and improvement or construction of such sewers is proper without a resolution of necessity as provided under this section, and the landowners cannot bar the project by filing protests. Kirkham, Michael & Assocs. v. Minot, 122 N.W.2d 862, 1963 N.D. LEXIS 100 (N.D. 1963).

Sufficiency of Resolution.

The statutes authorizing improvements to be paid for by special assessments must be strictly pursued, and the resolution of necessity must specifically designate the work to be done. McLauren v. Grand Forks, 43 N.W. 710, 6 Dakota 397, 1889 Dakota LEXIS 27 (Dakota 1889).

A resolution requiring the city engineer to prepare plans and specifications was insufficient to comply with this statute. Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

Frontage roads, drain improvements, and land for a drain were authorized improvements under the adopted resolution of necessity and the city did not fail to correctly interpret the law, nor did it abuse its discretion by including the costs of these improvements in the total cost of the project. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

When Statute Applies.

This statute applies only where a street improvement is to be paid for by the levy of special assessments. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

When proceedings were had for the construction of curbing under S.L. 1917, ch. 72 (N.D.C.C. §§ 40-31-01 to 40-31-06), the requirements of resolution of necessity and publication were not applicable. Deuchscher v. Jamestown, 61 N.D. 314, 237 N.W. 814, 1931 N.D. LEXIS 277 (N.D. 1931).

40-22-16. Sewer or water improvements and parking lots in municipalities may be paid for by service charges.

A municipality constructing a sewer or water improvement or a parking lot under the special assessment method may resolve in the resolution or ordinance required by section 40-22-08 in the case of a sewer or water improvement, or in the resolution required by section 40-22-15 in the case of a parking lot, that a portion of the cost of the improvement shall be raised by service charges for the use of the improvement, and of the utility or parking system of which it forms a part. If the municipality so resolves, it may determine, in its resolutions, ordinances, and other proceedings relating to the levying of special assessments and the issuing of warrants to pay the cost of such improvement, that a specified portion or all of such cost shall be assessed specially against any property specially benefited and may cause to be assessed only the portion so determined. In such event the entire remainder of such cost, including interest as well as principal of any warrants issued, over and above the amount of special assessments actually collected and received from time to time in the fund of the improvement district, plus any general taxes pledged in accordance with section 40-24-10 and similarly collected and received, shall be paid from the net revenues derived from said service charges; provided, that nothing herein shall affect the power and duty of the governing body to levy a tax for the payment of a deficiency in the improvement district fund at the times and under the conditions set forth in section 40-26-08. All of the applicable provisions of this title relating to special assessments shall be applicable to such improvements except as to the portion of the cost thereof resolved or ordained to be paid by service charges. The governing body of the municipality shall provide for the establishment, imposition, and collection of service charges for the services furnished by such improvement and the utility or parking system of which it forms a part, and in connection therewith it shall have all the rights and powers respecting such service charges as it would have with respect to like matters if such improvement were made in accordance with chapter 40-35. The net revenues derived from the imposition and collection of such service charges, or such portion thereof as shall be determined by the governing body in said resolutions and ordinances, shall be paid into the appropriate improvement district funds created pursuant to section 40-24-18. Such revenues when collected shall be used and applied in the same manner as moneys paid into such funds from the collection of special assessments. In its resolutions and ordinances, the governing body of any municipality issuing warrants to finance any such improvement may establish an assessment reserve in the fund of the improvement district, to which it may appropriate net revenues of the utility or system from time to time received in excess of amounts required, with special assessments and taxes then on hand, to meet the principal and interest next due on such warrants. Prior to November first of any year, the governing body may by resolution determine the proportion which the amount then on hand in said assessment reserve, and irrevocably appropriated to the payment of said warrant, bears to the aggregate amount of the installment of the special assessments and taxes levied for the improvement which is payable in the following year, including interest thereon, and the governing body may direct the county auditor to reduce, by not more than a proportionate amount, the total of such installment and interest which would otherwise be placed upon the tax list of the municipality for the current year, against each lot and tract of land assessed or taxed for the improvement. If such installment of the special assessment on any property has been prepaid, the governing body may direct the city auditor to refund, out of the assessment reserve, to the owner of the property at the time of such refund as indicated in the records of the recorder of the county, a sum not exceeding a similar proportion of the principal amount of such installment, excluding interest.

Source: S.L. 1941, ch. 202, § 1; R.C. 1943, § 40-2216; S.L. 1951, ch. 266, § 1; 1957, ch. 281, § 1; 1957 Supp., § 40-2216; S.L. 1985, ch. 458, § 2; 2001, ch. 120, § 1.

Collateral References.

Validity and construction of regulation by municipal corporation fixing sewer-use rates, 61 A.L.R.3d 1236.

40-22-17. Protest against resolution of necessity — Meeting to hear protest.

If, within thirty days after the first publication of the resolution declaring the necessity of an improvement project of the type specified in any one of the subsections of section 40-22-01, the owners of any property within the improvement district file written protests describing the property which is the subject of the protest with the city auditor protesting against the adoption of said resolution, the governing body of the municipality, at its next meeting after the expiration of the time for filing such protests, shall hear and determine the sufficiency thereof.

Source: S.L. 1905, ch. 62, § 143; R.C. 1905, § 2778; S.L. 1907, ch. 46, § 3; C.L. 1913, § 3704; S.L. 1925, ch. 212, § 1; 1925 Supp., § 3704; S.L. 1927, ch. 182, § 1; R.C. 1943, § 40-2217; S.L. 1959, ch. 306, § 4; 1967, ch. 323, § 143; 1983, ch. 459, § 1.

Notes to Decisions

Effect of Failure to Protest.

Where property owners failed to file written protests to action of city board of commissioners in creating an improvement district, they were bound thereby and the board’s action creating such district was conclusive. Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

When plaintiff companies failed to protest the creation of a special improvement district, they were unable to challenge the failure to include other nearby properties in the district; the companies’ action was properly dismissed against the city after the city’s assessment of funds against the companies for a street improvement project. Crane Johnson Lumber Co. v. City of Fargo, 2003 ND 181, 671 N.W.2d 814, 2003 N.D. LEXIS 201 (N.D. 2003).

Strict Construction.

The statutes authorizing improvements to be paid for by special assessments must be strictly pursued, and the resolution of necessity must specifically designate the work to be done. McLauren v. Grand Forks, 43 N.W. 710, 6 Dakota 397, 1889 Dakota LEXIS 27 (Dakota 1889).

When Statute Applies.

The provisions of this statute apply only in a case where a street improvement is to be paid for by special assessment. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

This statute was not applicable to order by city council to construct curbing under Laws 1917, ch. 72 (N.D.C.C. §§ 40-31-01 to 40-31-06). Deuchscher v. Jamestown, 61 N.D. 314, 237 N.W. 814, 1931 N.D. LEXIS 277 (N.D. 1931).

It was error to conclude N.D.C.C. § 40-22-15 gave a property owner no right to protest a city's creation of an improvement district because (1) the district included street repairs, utilities and other items not included in the description of a water or sewer improvement under N.D.C.C. § 40-22-01(1), and (2) it was unknown if the other repairs were incidental to water and sewer repairs, so it could not be concluded with certainty that the property owner's complaint did not state a claim upon which relief could be granted. Nandan, LLP v. City of Fargo, 2015 ND 37, 858 N.W.2d 892, 2015 N.D. LEXIS 42 (N.D. 2015).

Withdrawal of Protest.

Since property owners have the right to protest the establishment of an improvement district, they also have the right to withdraw from the protest petitions if withdrawal comes before final action is taken thereon. Gallaher v. Fargo, 64 N.W.2d 444, 1954 N.D. LEXIS 77 (N.D. 1954).

Collateral References.

Cotenancy as factor in determining representation of property owners in remonstrance against public improvements, 3 A.L.R.2d 127.

Withdrawal of name from remonstrance or revocation of withdrawal, and time therefor, 27 A.L.R.2d 604.

40-22-18. Protest bar to proceeding — Invalid or insufficient protests — Payment of costs — Tax levy.

If the governing body finds the protests to contain the names of the owners of a majority of the area of the property included within the improvement district, the protests shall be a bar against proceeding with any special assessment for the improvement project. However, the protests do not bar proceeding with the improvement project described in the plans and specifications if the governing body funds the project with funds other than special assessments. If the governing body finds the protests to contain the names of the owners of a majority of any separate property area included within the district, the protests shall be a bar against proceeding with special assessments to be assessed in whole or in part upon property within the area, but shall not bar against proceeding with the improvement project or assessing the cost thereof against other areas within the district, unless the protests represent a majority of the area of the entire district. If the protests represent a majority of the area of the entire district, the protests bar any special assessment for the improvement project. Property owned by a political subdivision is not included when determining whether the protests contain the names of the owners of a majority of the area included within the improvement district or a separate property area unless the political subdivision filed a protest.

The termination of proceedings, by reason of protest or otherwise, shall not relieve the municipality of responsibility for payment of costs theretofore incurred and for payment of the costs a municipality may, if funds on hand and available for the purpose are insufficient, issue its certificates of indebtedness or warrants, or levy a tax which shall be considered a tax for a portion of the cost of a special improvement project by general taxation within the meaning of section 57-15-10. If the protests are found to be insufficient or invalid, the governing body may cause the improvement to be made and may contract or otherwise provide in accordance with this title for the construction thereof and the acquisition of property required in connection therewith and may levy and collect assessments therefor.

Source: S.L. 1897, ch. 41, § 2; R.C. 1899, § 2326v; S.L. 1905, ch. 62, § 143; R.C. 1905, § 2778; S.L. 1907, ch. 46, § 3; C.L. 1913, § 3704; S.L. 1925, ch. 212, § 1; 1925 Supp., § 3704; S.L. 1927, ch. 182, § 1; R.C. 1943, § 40-2218; S.L. 1959, ch. 306, § 5; 1971, ch. 402, § 5; 2015, ch. 280, § 1, effective August 1, 2015; 2019, ch. 338, § 1, effective August 1, 2019.

Notes to Decisions

Constitutionality.

Protesters against parking lot improvement district failed to establish that this section violated the one-man, one-vote principle enunciated by the United States supreme court because number of property owners protesting was fewer than a majority of owners and the protestants represented less than half of the area within district. Fisher v. Minot, 188 N.W.2d 745, 1971 N.D. LEXIS 193 (N.D. 1971).

Application.

The provisions of this statute apply only in a case where the improvement is to be paid for by special assessment. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

Burden of Proof.

The burden of proof that a sufficient protest was filed is placed upon the taxpayer challenging the action of the city’s governing body. Jones v. Hankinson, 48 N.D. 618, 186 N.W. 276, 1921 N.D. LEXIS 137 (N.D. 1921).

Majority of Property.

A majority of the property liable to be specially assessed meant a majority of the area of such property. Gallaher v. Fargo, 64 N.W.2d 444, 1954 N.D. LEXIS 77 (N.D. 1954) (Decided prior to the 1959 amendment which specified a majority of the area).

Owners.

Protesting holders of leasehold interests were not owners within this section, notwithstanding that lease holders directly paid the cost of special assessments. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Separate Property Area.

The term “separate property area” as used in this section and N.D.C.C. § 40-22-09 means “a geographically separate or noncontiguous area”. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Street Improvements.

A special-assessment (street-improvement) district which included only property lying within a single, continuous, closed boundary, with streets and avenues that formed a contiguous and interconnecting network, was one single area and written protests by less than a majority of the property owners did not meet the requirements of this section and would not bar improvements. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

40-22-19. Contract proposals.

Proposals for the work of making improvements provided for in this chapter must be advertised for by the governing body in the official newspaper of the municipality once each week for two consecutive weeks. All other provisions for proposals under this chapter are governed by chapter 48-01.2.

Source: S.L. 1887, ch. 73, art. 16, § 3; 1893, ch. 36, § 1; R.C. 1895, § 2317; S.L. 1897, ch. 41, § 3; 1899, ch. 41, § 4; R.C. 1899, §§ 2317, 2326d; S.L. 1905, ch. 62, §§ 143, 145; R.C. 1905, §§ 2778, 2780; S.L. 1907, ch. 46, §§ 3, 5; C.L. 1913, §§ 3704, 3705; S.L. 1925, ch. 212, § 1; 1925 Supp., § 3704; S.L. 1927, ch. 182, § 1; 1927, ch. 186, § 1; R.C. 1943, § 40-2219; S.L. 1949, ch. 268, § 3; 1957 Supp., § 40-2219; S.L. 1967, ch. 323, § 144; 1971, ch. 402, § 6; 1995, ch. 443, § 6; 2007, ch. 403, § 5.

Notes to Decisions

Competitive Bids.

In the absence of charter or statutory requirements to the contrary, a municipal contract need not be let upon competitive bids. Price v. Fargo, 24 N.D. 440, 139 N.W. 1054, 1913 N.D. LEXIS 13 (N.D. 1913).

Defect in Advertising.

Failure of an advertisement for bids to require cash basis and statement of interest rate may be cured by bids on cash basis and stating interest rate, but not if other bids are prevented by such failure. McKenzie v. Mandan, 27 N.D. 546, 147 N.W. 808, 1914 N.D. LEXIS 86 (N.D. 1914).

Interest Rate.

Where payment by warrant is contemplated, statement of interest rate is mandatory. McKenzie v. Mandan, 27 N.D. 546, 147 N.W. 808, 1914 N.D. LEXIS 86 (N.D. 1914).

Time of Publication.

The statute does not require the publication of proposals for work to be delayed until the publication of the resolution of necessity has been completed. Will v. Bismarck, 36 N.D. 570, 163 N.W. 550, 1917 N.D. LEXIS 213 (N.D. 1917).

Collateral References.

Difference in character or quality of materials, articles or work as affecting acceptance of bid for public contract, 27 A.L.R.2d 917.

Determination of amount involved in contract within statutory provision requiring public contracts involving sums exceeding specified amount to be let to lowest bidder, 53 A.L.R.2d 498.

Right of municipal corporation to recover back from contractor payments made under contract violating competitive bidding statute, 33 A.L.R.3d 397.

Liability of municipality on quasi contract for value of property or work furnished without compliance with bidding requirements, 33 A.L.R.3d 1164.

Public contracts: duty of public authority to disclose to contractor information, allegedly in its possession, affecting cost or feasibility of project, 86 A.L.R.3d 182.

Right of bidder for state or municipal contract to rescind bid on ground that bid was based upon his own mistake or that of his employee, 2 A.L.R.4th 991.

Public contracts: authority of state or its subdivision to reject all bids, 52 A.L.R.4th 186.

40-22-20. Bid to be accompanied by a bond — Bond retained upon failure of bidder to contract — Amount of bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-21. Bidder’s bond — Required — Amount. [Repealed]

Repealed by S.L. 1971, ch. 403, § 2.

40-22-22. Execution of bidder’s bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-23. Conditions of bidder’s bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-24. Bids — Filing — Sealing — Endorsing — Opening — Considering. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-25. Opening of bids — Bids to be entered on minutes — Final action on bids to be deferred. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-26. Petition by property owners to have paving of certain material — Contents.

If the governing body has called for bids on more than one kind of pavement, after the opening of the bids in connection with an improvement consisting of paving or repaving and before the meeting of the governing body to consider the same, the owners of a majority of the property liable to be specially assessed for such paving or repaving may file a written petition with the city auditor indicating that the petitioners have a preference for a certain type of paving or paving material for which bids have been invited. Upon receiving such petition, it shall be obligatory upon the governing body to cause the paving or repaving to be constructed of a kind of paving material indicated in the petition. The petition may consist of a single petition or several separate petitions signed by the owners of a majority of the property liable to be specially assessed for such improvement or by their authorized agents.

Source: S.L. 1905, ch. 62, § 143; R.C. 1905, § 2778; S.L. 1907, ch. 46, § 3; C.L. 1913, § 3704; S.L. 1925, ch. 212, § 1; 1925 Supp., § 3704; S.L. 1927, ch. 182, § 1; R.C. 1943, § 40-2226; S.L. 1949, ch. 268, § 5; 1957 Supp., § 40-2226; S.L. 1967, ch. 323, § 147.

Notes to Decisions

When Statute Applies.

The provisions of this statute apply only in a case where an improvement is to be paid for by special assessment. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

40-22-27. Rejection of bids — Readvertising for bids or construction by municipality without contract — Reevaluation of project. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-28. Determination of kind of paving after bids are considered.

If the contemplated improvement consists of paving or repaving, the governing body, after it has opened and considered the bids, shall determine by resolution the kind or kinds of pavement to be laid, and thereafter may proceed to award the necessary contract or contracts.

Source: S.L. 1887, ch. 73, art. 16, § 4; 1893, ch. 36, § 1; R.C. 1895, § 2318; S.L. 1899, ch. 41, § 4; R.C. 1899, §§ 2318, 2326d; S.L. 1905, ch. 62, § 148; R.C. 1905, § 2783; S.L. 1907, ch. 46, § 7; 1913, ch. 70, § 1; C.L. 1913, § 3708; R.C. 1943, § 40-2228.

40-22-29. Engineer’s statement of estimated cost required — Governing body to enter into contracts.

Before adopting or rejecting any bid filed under the provisions of this chapter, the governing body shall require the engineer for the municipality to make a careful and detailed statement of the estimated cost of the work for which proposals were advertised under section 40-22-19. The governing body may not award the contract to any bidder if the engineer’s estimate prepared pursuant to this section exceeds the engineer’s estimate of the cost of the work prepared pursuant to subsection 1 of section 40-22-10 by forty percent or more.

Source: S.L. 1887, ch. 73, art. 16, § 4; 1893, ch. 36, § 1; R.C. 1895, § 2318; S.L. 1899, ch. 41, § 4; R.C. 1899, §§ 2318, 2326d; S.L. 1905, ch. 62, § 148; R.C. 1905, § 2783; S.L. 1907, ch. 46, § 7; 1913, ch. 70, § 1; C.L. 1913, § 3708; R.C. 1943, § 40-2229; S.L. 1985, ch. 459, § 1; 1995, ch. 443, § 7; 2003, ch. 345, § 2.

Notes to Decisions

Compliance.

Plain language evidenced a legislative intent that the engineer’s report and resolution of necessity contained an estimate of the cost of the project and that the final cost and amount to be assessed could exceed the amounts listed in the resolution of necessity and engineer’s report; the landowner did not claim the city failed to comply with N.D.C.C. §§ 40-22-29 or 40-23-24, and the total amount of the special assessments did not improperly exceed the amounts estimated in the resolution of necessity and engineer’s report. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-22-30. Contractor’s bond — Execution. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-31. Conditions of contractor’s bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-32. Approval of bonds — Return of bidder’s bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-33. Failure to execute contractor’s bond. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-34. Insufficiency of bonds — New bonds required — Failure to furnish. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-22-35. Execution and filing of contract.

All contracts entered into for any work provided for in this chapter shall be entered into in the name of the municipality and shall be executed on the part of the municipality by the executive officer and countersigned by the auditor. After the contract is signed by the contractor, it shall be filed in the office of the city auditor.

Source: S.L. 1887, ch. 73, art. 16, § 4; 1893, ch. 36, § 1; R.C. 1895, § 2318; S.L. 1899, ch. 41, § 4; R.C. 1899, §§ 2318, 2326d; S.L. 1905, ch. 62, § 149; R.C. 1905, § 2784; C.L. 1913, § 3709; R.C. 1943, § 40-2235; S.L. 1967, ch. 323, § 150; 1973, ch. 80, § 15.

Collateral References.

Revocation, prior to execution of formal written contract, of vote or decision of public body awarding contract to bidder, 3 A.L.R.3d 864.

40-22-36. Contracts — Conditions and terms.

A contract let under the provisions of this chapter shall require the work to be done pursuant to the plans and specifications on file in the office of the city auditor, subject to the approval of the engineer acting for the municipality, and shall provide further:

  1. That the governing body shall have the right to suspend the work at any time for improper construction and to relet the contract therefor or to order a reconstruction of the work as to any part thereof improperly done.
  2. The time within which the work shall be completed.
  3. The period of time for which the work shall be guaranteed as to workmanship and materials.
  4. The fund from which the contract price is to be paid by the municipality.
  5. That the consideration expressed in the contract is payable only in warrants drawn on the fund described in the contract.
  6. That the municipality assumes and incurs no general liability under such contract.
  7. That failure of the engineer to reject work and materials which are not up to specifications and acceptance of the job by the engineer shall not release the contractor from liability for any failure on the contractor’s part to perform work or furnish materials in accordance with the plans and specifications.

The engineer acting for the municipality shall supervise and inspect the work during its progress. In addition to any rights which a municipality may have under its contract for construction of part or all of an improvement after a contract has been awarded and before work thereunder has been completed a municipality may, with the consent of the contractor and without advertising for bids, order additional work done by that contractor of the same character as that which was contracted for, whether within or without the improvement district for which the original contract was made, and upon the same terms and conditions specified in the original contract except as to time of performance, and at the same prices for the additional work provided that the total price payable to the contractor for such additional work shall not exceed twenty percent of the amount estimated by the engineer for the municipality to be payable for that character of work under the original contract.

Source: S.L. 1887, ch. 73, art. 16, § 4; 1893, ch. 36, § 1; R.C. 1895, § 2318; S.L. 1899, ch. 41, § 4; R.C. 1899, §§ 2318, 2326d; S.L. 1905, ch. 62, § 149; R.C. 1905, § 2784; C.L. 1913, § 3709; R.C. 1943, § 40-2236; S.L. 1967, ch. 323, § 151; 1971, ch. 402, § 7.

Notes to Decisions

Assuming General Liability.

This statute prohibits a municipality from assuming or incurring a general liability upon an implied contract as well as an express contract for improvements made pursuant to the provisions of N.D.C.C. ch. 40-22. Megarry Bros. v. City of St. Thomas, 66 N.W.2d 704 (N.D. 1954).

Certificate of Engineer.

The certificate of the city engineer that work has been completed is essential before the city can levy assessments against individual property for the payment of the cost of the improvement. Baker v. Lamoure, 21 N.D. 140, 129 N.W. 464, 1910 N.D. LEXIS 159 (N.D. 1910).

Where contract for municipal improvements specifically provided that the project engineer would supervise the work and would see that such work was done according to the contract provisions, the certificate of the engineer approving the work and the manner of performance and the action of the city in accepting such certificate of approval were conclusive on the parties in the absence of fraud, collusion, or such gross mistake as would imply bad faith on the part of the engineer. Granville v. Kovash, Inc., 118 N.W.2d 354, 1962 N.D. LEXIS 101, 1962 N.D. LEXIS 102 (N.D. 1962).

Collateral References.

Waiver of, or estoppel to rely upon, contractual limitation of time for bringing action against a municipality or other political subdivision, 81 A.L.R.2d 1039.

40-22-37. Contractor shall be paid during progress of work — Retainage — Failure to pay — Rate of interest — Investment of retainage.

If the contractor to whom a contract is let properly performs the work therein designated, the governing body, at least once in each calendar month during the continuance of such contract work, shall meet, receive, and consider estimates furnished by the agent, engineer, or architect acting for the municipality or if not so furnished, then by the contractor, and shall allow such estimates in an amount of the estimated value of the labor and material furnished upon such contract, and of the material then upon the ground for use in such contract, subject to retentions equal to ten percent of each estimate presented until such time as the project is fifty percent completed, with no further retainage on estimates during the continuance of the contract. The governing body may, however, upon completion of ninety-five percent of the contract according to the estimates, pay to the contractor ninety-five percent of the amount retained from previous estimates. Any amount retained after ninety-five percent completion of the contract shall be paid to the contractor in such amounts and at such times as are approved by the municipality, upon estimates by its agent, engineer, or architect or the contractor, with final payment of all moneys due to the contractor to be made immediately following completion and acceptance of the project. The governing body, immediately after considering and allowing any such estimate, shall certify and forward the same to the city auditor or other official having the power to draw warrants, who forthwith shall draw a warrant upon the proper fund and transmit the same promptly to the contractor entitled thereto. In case the governing body shall fail or neglect to receive and allow such estimate or certify any estimate or final payment upon completion and acceptance or the proper officer required to issue such warrant shall fail or neglect to issue a warrant as provided herein, for a period of more than thirty days from the date of such estimate or completion date, then said estimate or final payment, together with any retainage properly payable, shall draw interest from its date at the rate per annum of two percentage points below the Bank of North Dakota prime interest rate as set thirty days from the date of such estimate or completion date until the issuance of a proper warrant therefor. Such interest shall be computed and added to the face of said estimate, final payment, or retainage by the officer required to issue such warrant, shall be included in the warrant when drawn, and shall be charged to the fund from which payment for the improvement is to be made. On the amounts of estimates retained, as provided herein, the governing board, authorized committee, or public body in charge of such work may invest or deposit the retained amounts in any financial association or institution in North Dakota earning interest or dividends for the benefit of the contractor. Any amounts so invested or deposited shall remain in the name of the governing board, authorized committee, or public body in charge of such work until final payment of all money due to the contractor is to be made. Further, no contractor shall use such account in any manner whatsoever until released and received by the contractor upon completion of the contract.

Source: S.L. 1887, ch. 73, art. 16, § 5; 1893, ch. 36, § 1; R.C. 1895, § 2319; S.L. 1899, ch. 41, § 5; R.C. 1899, §§ 2319, 2326e; S.L. 1905, ch. 62, § 150; R.C. 1905, § 2785; C.L. 1913, § 3710; R.C. 1943, § 40-2237; S.L. 1963, ch. 295, § 1; 1971, ch. 405, § 1; 1975, ch. 376, § 1; 1981, ch. 467, § 1.

Notes to Decisions

Defenses Against Transferee of Warrants.

A transferee of the improvement warrants of a municipal corporation, after approval by city council, is not subject to defenses subsequently arising. Dakota Trust Co. v. Hankinson, 53 N.D. 356, 205 N.W. 990, 1925 N.D. LEXIS 86 (N.D. 1925).

Partial Awards.

Partial awards during the progress of work are limited to eighty-five percent of the amount of the estimates shown to have been earned. State ex rel. Kistler v. Hankinson, 53 N.D. 346, 205 N.W. 995, 1925 N.D. LEXIS 87 (N.D. 1925). (Decided prior to 1963 amendment which changed percentages).

40-22-38. Application of chapter to waterworks and water mains — Acquisition of waterworks, sewage treatment and disposal plants, and sewer systems.

The provisions of this chapter relating to water mains and waterworks apply only to municipalities that own or contemplate owning a system of waterworks and water mains. In case of the purchase of a waterworks system or of a sewage treatment or disposal plant or of a system of sewers, either by eminent domain proceedings subject to chapter 32-15, or otherwise, a municipality may create improvement districts, direct the preparation of plans and specifications, adopt a resolution declaring the purchase of such facilities necessary, and take all other proceedings prescribed by this chapter which would be taken in case of the construction of such facilities by the municipality itself for the purpose of defraying the cost thereof by special assessment of the property benefited thereby. The property benefited may be specially assessed for the purchase of such facilities, either separately or as a part of a new system, the same as if said facilities were constructed entirely anew.

Source: S.L. 1905, ch. 62, § 179; R.C. 1905, § 2817; C.L. 1913, § 3742; S.L. 1921, ch. 36, § 1; 1925 Supp., § 3742; R.C. 1943, § 40-2238; S.L. 1951, ch. 267, § 1; 1957 Supp., § 40-2238; 2007, ch. 293, § 21.

Cross-References.

Community water facility loans, see ch. 6-09.5.

40-22-39. Abbreviations, letters, or figures may be used in proceedings for levy and collection of special assessments.

In all proceedings for the levy and collection of special assessments, abbreviations, letters, and figures may be used to denote additions, lots, lands, blocks, sections, townships, ranges, and parts thereof, years, days of the month, and amounts of money.

Source: S.L. 1897, ch. 41, § 16; 1899, ch. 41, § 17; R.C. 1899, §§ 2326q, 2327i; S.L. 1905, ch. 62, § 176; R.C. 1905, § 2814; C.L. 1913, § 3739; R.C. 1943, § 40-2239.

40-22-40. City auditor to keep complete record of improvements — Record as evidence.

The city auditor shall keep in the city auditor’s office a complete record of all the proceedings taken in the matter of making any improvements under this chapter. Such record shall include all reports and the confirmations thereof, all petitions, orders, appointments of commissioners, notices and proofs of publications, and resolutions of the governing body. Such record, a certified transcript thereof, or the original papers, proofs of publications, orders, or resolutions on file in such office shall be admitted in evidence in any court or place in this state without further proof as evidence of the facts therein contained.

Source: S.L. 1905, ch. 62, § 175; R.C. 1905, § 2813; C.L. 1913, § 3738; R.C. 1943, § 40-2240; S.L. 1967, ch. 323, § 152.

40-22-41. Validation. [Repealed]

Repealed by omission from this code.

40-22-42. Confirmation of certain proceedings for city and village improvements. [Repealed]

Repealed by omission from this code.

40-22-43. Defects and irregularities in improvement proceedings are not fatal.

Defects and irregularities in any proceedings had or to be had under this chapter relating to municipal improvements by the special assessment method, when the proceedings are for a lawful purpose and are unaffected by fraud and do not violate any constitutional limitation or restriction, shall not invalidate such proceedings, and no action shall be commenced or maintained and no defense or counterclaim in any action shall be recognized in the courts of this state founded on any such defects or irregularities in such proceedings, unless commenced within thirty days of the adoption of the resolution of the governing board awarding the sale of warrants to finance the improvement.

Source: S.L. 1959, ch. 305, § 1; 1977, ch. 216, § 2.

Notes to Decisions

Action Untimely.

City’s inadvertent failure to include a complete map of proposed street improvement project when publishing its second notice of resolution of necessity did not violate property owner’s due process rights and the action by landowners to invalidate the assessments which was filed more than thirty days after the City’s adoption of the resolution was barred by the statute of limitations. Serenko v. City of Wilton, 1999 ND 88, 593 N.W.2d 368, 1999 N.D. LEXIS 122 (N.D. 1999).

40-22-44. Discontinuance of municipal parking lots.

The governing body of a municipality may, if it deems it in the best interests of the municipality, discontinue the operation of a municipal parking lot when there exists a higher and better use for the property. If any portion of the cost of such parking lot has been paid for by special assessment, the governing body shall, prior to making any determination to discontinue, hold a public hearing concerning the continuance or discontinuance of such parking lot. The governing body shall cause to be published once each week for two consecutive weeks in the official newspaper of the municipality a notice of the time when and the place where the governing body will meet to conduct the hearing required by this section. If the governing body, after public hearing, determines that the parking lot may be put to a higher and better use, the governing body is hereby authorized to take the necessary steps to effectuate that use. For this purpose, the governing body is authorized to, but not limited to, enter into and complete negotiations for the sale of the parking lot in question.

Source: S.L. 1967, ch. 331, § 1.

40-22-45. Equalization of original assessment.

Whenever any portion of the cost of a parking lot which is to be discontinued has been paid for by special assessment, the useful life of the parking lot shall be determined by the governing body. If the period of time determined to be the useful life of the parking lot has not completely elapsed, the governing body of the municipality shall direct the cancellation of uncollected installments of special assessments previously levied for the same improvement, and the refund of installments paid, plus interest calculated at four and one-half percent per annum on the refunded prepaid installments, from the general fund of the municipality to the extent determined by it to be necessary to make the original assessments and the subsequent assessments bear as nearly as possible the same relation to the total benefits derived from the improvement by the respective properties assessed.

Source: S.L. 1967, ch. 331, § 2.

40-22-46. Payment of outstanding warrants — Deposits of surplus in general fund — General fund liable for any outstanding warrants.

Upon the discontinuance of any municipal parking lot under the authority of sections 40-22-44 and 40-22-45, the governing body shall apply the proceeds from the sale of such property, if such property is sold, to the special assessment fund created to bear the cost of creating the parking lot. If there is any surplus after all of the outstanding special assessment warrants or bonds are redeemed, the surplus shall be transferred to the general fund of the municipality. If the proceeds from the sale of such property, if such property is sold, are insufficient to cover the cost of redeeming the outstanding special assessment warrants or bonds, the governing body shall provide for the payment of said warrants or bonds out of the general fund of the municipality.

Source: S.L. 1967, ch. 331, § 3.

CHAPTER 40-22.1 Special Assessments for Promotion of Business Activity

40-22.1-01. Improvements by special assessments for business promotion.

A municipality may defray the expense of improvements by special assessments for the promotion of business activity and new business development through any means not inconsistent with the purposes of this chapter, including advertising, public information, marketing, maintenance and decoration of public places, promotion of public events, furnishing of music in any public place, providing professional management, planning, and promotion, and the general promotion of trade activities. The governing body of the municipality may make and execute necessary or convenient agreements to exercise the powers and functions under this chapter, including contracts with any entity. In planning an improvement project under this chapter the governing body may include any work and materials which are deemed necessary or reasonably incidental to the project. A municipality may not issue warrants, bonds, or any other form of indebtedness in anticipation of the levy and collection of assessments under this chapter.

Source: S.L. 1987, ch. 494, § 1; 2011, ch. 296, § 1.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 296, S.L. 2011 became effective August 1, 2011.

40-22.1-02. Improvement districts to be created.

For an improvement project under section 40-22.1-01 and defraying the costs of the project by special assessments, a municipality may create and alter a business improvement district by ordinance or resolution. The governing body of the municipality shall designate the district by an appropriate name and by a number distinguishing it from other improvement districts. A municipality may make and finance any improvement and levy special assessments for the improvement under any alternate procedure in this title. If the proposal for creation of an improvement project under this chapter is made by any person, group, or entity that is not an officer, board, or agency of the municipality, the person, group, or entity shall file a bond or other sufficient security, payable to the municipality, to defray all costs incurred if the improvement project is later barred under section 40-22.1-08. The bond or other sufficient security must be filed with the city auditor prior to the initiation of any further proceedings under this chapter. The governing body of the municipality shall determine the amount and form of the bond or other sufficient security.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-03. Size and form of improvement district — Regulations governing.

Any business improvement district created by a municipality may embrace two or more separate property areas. A business improvement district must include all properties which in the judgment of the governing body, after consultation with the city auditor or city auditor’s designee planning the improvement, will be benefited by the creation of all or a portion of the business improvement project. A district may be created without uniformity among the types, items, or quantities of work and materials to be used at particular locations throughout the district. The jurisdiction of a municipality to make, finance, and assess the cost of any improvement project may not be impaired by any lack of commonness, unity, or singleness of the location, purpose, or character of the improvement, or by the fact that any one or more of the properties included in the district is subsequently determined not to be benefited by the improvement, or by a particular portion of the improvement. Upon receipt of a petition signed by the owners of three-fourths of the area to be added to a business improvement district in which an improvement is proposed or created, the governing body may enlarge the district. Any district created under this chapter shall include only property devoted, in whole or in part, to commercial or business use.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-04. Auditor’s report required — Contents.

After a business improvement district has been created, the governing body of a municipality, to make any of the improvements set out in section 40-22.1-01 in the manner provided in this chapter, shall direct the city auditor for the municipality or some other person, group, or entity to prepare a report as to the general nature, purpose, and feasibility of the proposed improvement and an estimate of the probable cost of the work.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-05. Approval of plans, specifications, and estimates.

At any time after receiving the report required by section 40-22.1-04, the governing body may direct the city auditor or other person, group, or other entity preparing the report to prepare detailed plans and specifications concerning the improvement. The plans and specifications must be approved by a resolution of the governing body of the municipality. The plans, specifications, and estimates are the property of the municipality and must be filed in the office of the city auditor and shall remain on file in that office subject to inspection by the public.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-06. Resolution declaring improvements necessary — Contents of resolution — Publication of resolution.

After the report required by section 40-22.1-04 has been filed and approved, the governing body of the municipality shall declare by resolution that it is necessary to make the improvements. A resolution is not required if the governing body determines by resolution that a written petition for the improvement, signed by the owners of a majority of the area of the property included within a district, has been received. The resolution must refer intelligibly to the report and must include a map of the municipality showing the proposed business improvement district. The resolution must be published once each week for two consecutive weeks in the official newspaper of the municipality.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-07. Protest against resolution of necessity — Meeting to hear protest.

If, within thirty days after the first publication of the resolution declaring the necessity of a business improvement project, the owners of any property within the improvement district file written protest with the city auditor against the adoption of the resolution and describing the property which is the subject of the protest, the governing body of the municipality, at its next meeting after the expiration of the time for filing protests, shall hear and determine the sufficiency of the protests.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-08. Protest bar to proceeding — Invalid or insufficient protest — Payment of costs — Tax levy.

If the governing body finds the protest to contain the names of the owners of one-third or more of the area of the property included within the business improvement district, the protest bars proceeding further with the improvement project described in the plans and specifications. If the governing body finds the protest to contain the names of the owners of one-third or more of any separate property area included within the district, the protest bars proceeding with the applicable portion of the improvement project, but does not bar proceeding with the remainder of the improvement project or assessing the cost of the improvement project against other areas within the district, unless the protest represents one-third or more of the area of the entire district. Termination of proceedings does not relieve the municipality of responsibility for payment of costs incurred. The municipality is not responsible for payment of costs incurred if the improvement project is proposed by any person, group, or entity that is not an officer, board, or agency of the municipality. Payment of the costs incurred for such a barred improvement project must be as provided in section 40-22.1-02. For payment of costs incurred for a barred improvement project proposed by a municipality, the municipality may, if available funds are insufficient, issue its certificates of indebtedness or warrants, or levy a tax which shall be considered a tax for a portion of the costs of a special improvement project by general taxation within the meaning of section 57-15-10. If the protests are found to be insufficient or invalid, the governing body may cause the improvement to be made, levy and collect necessary assessments, and contract for the improvement and acquisition of necessary property or services.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-09. Execution and filing of contracts.

All contracts under this chapter must be entered into in the name of the municipality and must be executed for the municipality by the executive officer and countersigned by the auditor. After the contract is signed by the other party, it must be filed in the office of the city auditor.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-10. Contracts — Conditions and terms.

A contract executed under this chapter must require the work to be done pursuant to the plans and specifications on file in the office of the city auditor, subject to the approval of the city auditor acting for the municipality, and must provide:

  1. The governing body may suspend the work at any time for improper performance and relet the contract or order reperformance of all or any of the work improperly done.
  2. The time within which the work is to be completed.
  3. The period of time for which the work must be guaranteed or warranted.
  4. The fund from which the contract price is to be paid by the municipality.
  5. That the consideration expressed in the contract is payable only in warrants drawn on the fund described in the contract.
  6. That the municipality assumes and incurs no general liability under the contract.
  7. That the failure of the city auditor to reject work and materials which are not up to specifications and acceptance of the job by the city auditor does not release the party from liability for any failure to perform work or furnish materials in accordance with the plans and specifications.

The city auditor acting for the municipality shall supervise and inspect the work during its progress. In addition to any rights which a municipality may have under its contract for establishment and operation of part or all of a business improvement after a contract has been awarded and before contract work has been completed, a municipality may, with the consent of the other party and without advertising for bids, order additional work done by that party of the same character as that which was contracted for, whether within or without the improvement district for which the original contract was made, and upon the same terms and conditions specified in the original contract except as to time of performance, and at the same prices for the additional work; provided, that the total price payable to said party for such additional work may not exceed twenty percent of the amount estimated by the city auditor for the municipality to be payable for that character of work under the original contract.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-11. Abbreviations, letters, and figures may be used in proceedings for levy and collection of special assessments.

In all proceedings for the levy and collection of special assessments abbreviations, letters, and figures may be used to denote full or partial additions, lots, blocks, sections, townships, and ranges or years, days of the month, and amounts of money.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-12. City auditor to keep complete record of improvements — Record as evidence.

The city auditor shall keep a complete record of all the proceedings in the matter of making any improvements under this chapter. The records must include all reports and confirmations, all petitions, orders, appointments of commissioners, notices and proofs of publication, and resolutions of the governing body. The records, a certified transcript of the records, or the original papers, proofs, publications, orders, or resolutions on file in the auditor’s office may be admitted in evidence in any court or place in this state without further proof as evidence of the facts they contain.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-13. Defects and irregularities in improvement proceedings are not fatal.

If the proceedings are for a lawful purpose, unaffected by fraud, and do not violate any constitutional limitation or restriction, defects or irregularities in proceedings under this chapter do not invalidate the proceedings. No action may be commenced or maintained and no defense or counterclaim in any action may be recognized in the courts of this state founded on any defects or irregularities in proceedings under this chapter, unless commenced within thirty days of the adoption of the resolution of the governing body awarding the sale of warrants to finance the improvement.

Source: S.L. 1987, ch. 494, § 1.

40-22.1-14. City auditor’s statement of estimated cost required — Governing body to enter into contracts.

Before adopting or rejecting any contract proposed under this chapter, the governing body shall require the city auditor for the municipality to make a careful and detailed statement of the estimated cost of the work. The governing body may not award the contract if the city auditor’s estimate prepared under this section exceeds the estimate prepared under section 40-22.1-04. If all proposals are not rejected, the governing body shall award the contract to that person, firm, corporation, limited liability company, or other entity best able to perform the work, upon the basis of cash payment for the work.

Source: S.L. 1987, ch. 494, § 1; 1993, ch. 54, § 106.

CHAPTER 40-23 Assessment of Benefits

40-23-01. Special assessment commission — Appointment of members — Terms of office.

The executive officer of each municipality, when it shall be found necessary, shall appoint three reputable residents and freeholders of the municipality as members of a commission which shall be known as the special assessment commission. The members appointed to the first special assessment commission in a municipality shall hold office, respectively, for terms designated by the executive officer when the appointments are made, as follows:

  1. One member shall hold office until the first meeting of the governing body in April in the first odd-numbered year following that member’s appointment.
  2. One member shall hold office until the first meeting of the governing body in April in the second odd-numbered year following that member’s appointment.
  3. One member shall hold office until the first meeting of the governing body in April in the third odd-numbered year following that member’s appointment.

At the first meeting of the governing body in April of each odd-numbered year, or as soon thereafter as practicable, the executive officer shall appoint a member of such commission. After the members of the first special assessment commission have been appointed as provided in this section, each appointment shall be made for a term of six years.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 8; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326h, 2327; S.L. 1905, ch. 62, § 164; R.C. 1905, § 2799; C.L. 1913, § 3724; R.C. 1943, § 40-2301.

Cross-References.

Gravel surfacing streets by special assessment, see ch. 40-54.

Residential paving projects, see ch. 40-56.

Notes to Decisions

In General.

A special assessment commission is in essence a legislative tribunal created by legislative authority for the purpose of (1) determining the benefits accruing to the several tracts of land in an improvement district by reason of the construction of an improvement and (2) assessing the costs and expenses thereof against each tract in proportion to the benefit received. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

Power to Lay Special Assessment.

The foundation of the power to lay a special assessment for a local improvement of any character, including the improvement of a city street, is the benefit which the object of the assessment confers on the owner of the abutting property, or the owners of property in the assessment district, which is different from the general benefit which the owners enjoy in common with other inhabitants or citizens of the municipal corporation. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Right to Appeal.

Even though railroad did not appear or file objection either before or at hearing by special assessment commission, the railroad was not estopped to appeal from determination of commission; the right of appeal is not conditioned upon appearance before the commission. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

Collateral References.

Parking facilities, municipal establishment or operation of, 8 A.L.R.2d 373.

Tax sale as freeing property from possibility of further assessments for benefits to land, 11 A.L.R.2d 1133.

Power to remit, release, or compromise assessments for public improvements, 28 A.L.R.2d 1425.

Power of municipality or other governmental unit to make contract or covenant exempting or releasing property from special assessment, 47 A.L.R.2d 1185.

Power to include in special assessment, interest accruing during the construction of the public improvement and running until special assessment therefor becomes due, 58 A.L.R.2d 1343.

40-23-02. Commissioners — Appointments subject to confirmation — Qualifications — Chairman — Compensation.

All appointments made to the special assessment commission shall be subject to the confirmation of the governing body. Upon appointment and confirmation, each commissioner shall file with the city auditor a written acceptance of the appointment and shall take and subscribe the oath required of other municipal officers, which shall be filed with the city auditor. The member of the commission having the shortest term to serve shall act as chairman. No member of the commission shall hold any other municipal office while serving as such member. The appointing authority shall establish the rate of compensation for commissioners and actual expenses incurred by commissioners may be reimbursed at the official reimbursement rates of the appointing authority.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 8; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326h, 2327; S.L. 1905, ch. 62, § 164; R.C. 1905, § 2799; C.L. 1913, § 3724; R.C. 1943, § 40-2302; S.L. 1967, ch. 323, § 153; 1973, ch. 329, § 1; 2013, ch. 93, § 12.

Effective Date.

The 2013 amendment of this section by section 12 of chapter 93, S.L. 2013 became effective August 1, 2013.

40-23-03. Removal of commissioners — Filling vacancies.

Any member of the commission may be removed by the executive officer, with the consent of a majority of the members of the governing body, for neglect or refusal to perform the duties of the office or for misconduct in office. A vacancy occurring in the commission by removal, resignation, or death shall be filled by appointment by the executive officer as soon as practicable after the vacancy occurs.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 8; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326h, 2327; S.L. 1905, ch. 62, § 164; R.C. 1905, § 2799; C.L. 1913, § 3724; R.C. 1943, § 40-2303.

40-23-04. Municipal officers and employees to advise commission.

Each officer and employee of the municipality shall give to the special assessment commission such information, advice, and assistance as it may request.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 8; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326h, 2327; S.L. 1905, ch. 62, § 164; R.C. 1905, § 2799; C.L. 1913, § 3724; R.C. 1943, § 40-2304.

40-23-05. Notice to special assessment commission.

At any time after the contract and bond for any work for which a special assessment is required have been executed and approved by the governing body of the municipality and the total cost of such work shall have been estimated as nearly as practicable, the governing body may direct assessments to be levied for the payment of all or any part of such cost, and the city auditor shall notify the chairman of the special assessment commission and shall certify to the chairman the items of the total cost thereof so far as the same have been ascertained. The chairman immediately shall call a meeting of the commission, which shall proceed as expeditiously as possible to make and return the special assessment as provided in this chapter. The total cost of the improvement which may be certified to the assessment commission shall include the estimated construction cost under the terms of the contract, a reasonable allowance as determined by the governing body for cost of extra work which may be authorized under the plans and specifications, engineering, fiscal agent’s and attorney’s fees for any services in connection with the authorization and financing of the improvement, cost of publication of required notices and printing of improvement warrants, and all expenses incurred in the making of the improvement and levy of assessments therefor. If any error is made in estimating the cost, the governing body may direct a supplemental assessment to be made as provided in section 40-26-02.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 165; R.C. 1905, § 2800; C.L. 1913, § 3725; S.L. 1939, ch. 172, § 1; R.C. 1943, § 40-2305; S.L. 1949, ch. 269, § 1; 1957 Supp., § 40-2305; S.L. 1967, ch. 323, § 154.

Notes to Decisions

Construction Interest.

“Construction interest” is a proper part of the expense of improvement within the terms of the statute. It is that sum estimated for the payment of interest on special assessment warrants sold to defray the cost of an improvement from the time of sale until special assessments become due and payable and begin to draw interest. Hoffman v. Minot, 77 N.W.2d 850, 1956 N.D. LEXIS 132 (N.D. 1956).

Expenses.

N.D.C.C. § 40-23-05 permitted the city to assess all of its expenses incurred in making the improvements and assessments; the city did not fail to correctly interpret the law, nor did it abuse its discretion by including these amounts in the total cost of the project. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

Power of Commission.

Pursuant to the express provisions of this section and N.D.C.C. §§ 40-23-07 and 40-23-15, the special-assessment commission is vested with the power and the authority to fix and determine not only the benefits, but the amount of the assessment each property owner should be required to pay, subject to the statutory review by the governing body provided for by N.D.C.C. § 40-23-15. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Where special assessment commission has been appointed by municipality pursuant to N.D.C.C. § 40-23-01, such commission, under this section, has power to make assessments in accordance with law at any time after contract and bond for work for which special assessment is required has been executed and approved by governing body. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

DECISIONS UNDER PRIOR LAW

Certificate.

The certificate of the city engineer that an improvement had been completed was essential under R.C. 1905, §§ 2787 and 2800 before the city could levy special assessments against individual property to pay the cost of the improvement. Baker v. Lamoure, 21 N.D. 140, 129 N.W. 464, 1910 N.D. LEXIS 159 (N.D. 1910).

40-23-06. Assessments in improvement districts before work completed.

If the work consists of improvements on or additions to sewers or water mains already installed or paving already laid, and all bids for such work were rejected and the work done by the municipality, and if, in the opinion of the engineer acting for the municipality, the work can be done in separate sections or work units, it shall not be necessary that all of the work be completed before the special assessments are made. The governing body, by resolution adopted at any time before or after the work has been commenced, may specify what part of the improvements shall constitute a separate section or work unit, and upon completion of the work in one or more of such separate sections or work units, the special assessments may be made in the same manner and with the same force and effect as if all of the work in the entire improvement district had been completed. Failure for any reason to complete the work in any remaining separate section or work unit included within such improvement district shall not affect the validity of the special assessments made or the special assessment warrants issued for the work completed.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 165; R.C. 1905, § 2800; C.L. 1913, § 3725; S.L. 1939, ch. 172, § 1; R.C. 1943, § 40-2306.

40-23-07. Determination of special assessments by commission — Political subdivisions not exempt.

Whenever the commission makes any special assessment, the commission shall determine the particular lots and parcels of land which, in the opinion of the commission, will be especially benefited by the construction of the work for which the assessment is to be made. The commission shall determine the amount in which each of the lots and parcels of land will be especially benefited by the construction of the work for which such special assessment is to be made, and shall assess against each of such lots and parcels of land such sum, not exceeding the benefits, as is necessary to pay its just proportion of the total cost of such work, or of the part thereof which is to be paid by special assessment, including all expenses incurred in making such assessment and publishing necessary notices with reference thereto and the per diem of the commission. However, as an alternative to the procedure provided in this section, the special assessment commission may, in its discretion, determine and allocate the cost of special assessments in accordance with the method provided for in chapter 40-23.1. Property owned by a nonprofit entity and used exclusively as a cemetery is exempt from collection of special assessments for benefits conferred under this title and the city in which such property is located shall provide for the payment of special assessments, installments, and interest against such property by the levy of taxes according to law or by payment from other funds available to the city which are derived from sources other than special assessments. Benefited property belonging to counties, cities, school districts, park districts, and townships is not exempt from such assessment, and such public corporations whose property is so assessed shall provide for the payment of such assessments, installments thereof and interest thereon, by the levy of taxes according to law. Nothing in this section may be deemed to amend other provisions of law with reference to the levy of assessments on property sold for delinquent taxes.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, §§ 6, 7; 1899, ch. 41, § 9; 1899, ch. 42, §§ 2, 3; R.C. 1899, §§ 2320, 2326i, 2326z, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2801; S.L. 1913, ch. 85, § 1; C.L. 1913, § 3726; R.C. 1943, § 40-2307; S.L. 1947, ch. 285, § 1; 1957, ch. 282, § 1; 1957 Supp., § 40-2307; S.L. 1967, ch. 323, § 155; 1967, ch. 332, § 2; 1999, ch. 366, § 1; 2009, ch. 348, § 1.

Effective Date.

The 2009 amendment of this section by section 1 of chapter 348, S.L. 2009 became effective April 29, 2009, pursuant to an emergency clause in section 4 of 348, S.L. 2009.

Note.

Section 2 of ch. 348, S.L. 2009 provides:

“LEGISLATIVE INTENT. It is the intent of the sixty-first legislative assembly by enactment of this Act to provide for payment of special assessments against nonprofit cemetery property, including outstanding unpaid obligations, through levy of general property taxes within the city in recognition of the public benefit provided by operation of nonprofit cemeteries.”

Section 3 of ch. 348, S.L. 2009 provides:

“EFFECTIVE DATE. This Act is effective for collection of special assessments regardless of the date of the assessment.”

Notes to Decisions

In General.

It is the total work product used, rather than the exact method used, in determining the final assessment that is important. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

While assessments levied against each lot must be limited to a “just proportion,” the process of quantifying benefits accruing to each lot inevitably rests on the judgment and discretion of the special assessment commission, and there is no precise formula for quantifying benefits. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

Special Assessment Commission did not abuse its discretion in choosing the method of assessment, the Special Assessment Commission determined the benefit to each property from the improvements and the method used for determining the special assessments was not arbitrary, capricious, or unreasonable. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

Special assessment commission determined that the improvements benefited the owner’s properties in the amount assessed to them under the city’s policy, and the assessments did not exceed the benefits; the city did not act arbitrarily, capriciously, or unreasonably in determining the benefits and assessments to the owner’s properties. Despite the city’s difficulty in explaining the determination of benefits, the assessments satisfied the statute. Holter v. City of Mandan, 2020 ND 152, 946 N.W.2d 524, 2020 N.D. LEXIS 169 (N.D. 2020), cert. denied, — U.S. —, 141 S. Ct. 1515, 209 L. Ed. 2d 254, 2021 U.S. LEXIS 1334 (U.S. 2021).

District court properly dismissed an owner’s appeal of a board of city commissioners’ decision to specially assess her property for street improvements because the assessments to the owner’s properties satisfied the statutory requirements since the city assessed properties benefited by the street improvements on the basis of linear feet, and, while the findings by the special assessment commission on the amount of the benefit might be somewhat conclusory, the amount of the benefit was determined to be less than the total cost and was determined to be a just proportion of the total cost based on the city’s formula. 2020 ND 202, 2020 N.D. LEXIS 203.

Assessment for Flood Improvement.

When a special assessment commission made an assessment against a property for a special flood-improvement district, the commission did not act arbitrarily, capriciously, or unreasonably because, even though the property’s owner could plan to continue farming the property, the property would benefit from the improvement district, and the special benefit received would not be exceeded by the assessment. Bateman v. City of Grand Forks, 2008 ND 72, 747 N.W.2d 117, 2008 N.D. LEXIS 69 (N.D. 2008).

Assessment for Improvements to Sewer System.

The commission properly exercised its authority and discretion in choosing to employ a “water use” method of assessment for improvements to the sewer system and the “water use” method was a fair, just, and equitable method of determining benefits, where there was a direct relationship between water use and the size of the improvement facilities. Although it may have been a somewhat novel method of assessing benefits, it appeared undeniable that water use did have a direct relationship to the size and capacity of sewerage facilities needed. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

Assessment for Paving Streets.

Front-footage method may be used for assessing the costs of paving streets, particularly when the method is modified as necessary to maintain a fair proportion among the properties benefited by the project. Farmers Union Cent. Exch. v. Grand Forks County, 443 N.W.2d 907, 1989 N.D. LEXIS 149 (N.D. 1989).

Assessment for Water Improvement.

Although evidence that the landowners had in fact received the benefits attributed to them was not overwhelming, where the water improvement enhanced fire protection and facilitated moderate commercial and residential growth, the city had received requests to develop some of the landowners’ property, and the old water system retarded city growth, these facts, combined with the presumption that assessments are valid, supported assessments on undeveloped property at approximately 43 percent of the rate of developed property, and the taxing authorities did not act arbitrarily, oppressively or unreasonably. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

Assessment of City Property.

The assessment by the city of city property for special assessment improvements is not contrary to the provisions of article X, section 5 of the constitution of the state. Gallaher v. Fargo, 64 N.W.2d 444, 1954 N.D. LEXIS 77 (N.D. 1954).

Assessment of Railroad Right-of-Way.

The right-of-way of a railroad company may be specially assessed for public improvements, including water mains and sanitary sewers, but the benefits must not be speculative nor conjectural. Minneapolis, St. Paul & Sault Ste. Marie Ry. v. City of Minot, 51 N.D. 313, 199 N.W. 875, 1924 N.D. LEXIS 180 (N.D. 1924).

Assessment of Urban Renewal Property.

Urban renewal property is subject to the payment of special assessments, it not being specifically exempted therefrom by this section. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

Assessment Upon Foot Frontage Basis.

Special Assessment Commission did not use an inappropriate method to calculate the benefits appellants’ property located in the improvement district under N.D.C.C. § 40-23-07 by using a formula based on front footage or square footage, because the Commission was not required to separately determine the benefits to each individual property within the improvement district. D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

Assessments Limited to Benefit.

When special assessments are levied against property especially benefited by a special improvement, the amounts assessed against specific tracts are limited to and may not exceed the benefits from such improvement accruing to such tracts. Gunderson v. Maides, 71 N.D. 561, 3 N.W.2d 236, 1942 N.D. LEXIS 91 (N.D. 1942).

Assessment upon Foot Frontage Basis.

The foot frontage method of apportioning assessments can be used only in cases where the benefits conferred upon the assessed property are equal and uniform. Northern Pac. Ry. v. Grand Forks, 73 N.W.2d 348, 1955 N.D. LEXIS 153 (N.D. 1955).

Performance of Duties.

A special assessment commission, appointed under statutory authority and acting regularly in the discharge of its duties, is exercising functions quasi-judicial in character. Ellison v. La Moure, 30 N.D. 43, 151 N.W. 988, 1915 N.D. LEXIS 99 (N.D. 1915), writ of error dismissed, 245 U.S. 628, 38 S. Ct. 62, 62 L. Ed. 519, 1917 U.S. LEXIS 1703 (U.S. 1917).

Power of Commission.

Pursuant to the express provisions of this section and N.D.C.C. §§ 40-23-05 and 40-23-15, the special-assessment commission is vested with the power and the authority to fix and determine not only the benefits but the amount of the assessment each property owner should be required to pay, subject to the statutory review by the governing body provided for by N.D.C.C. § 40-23-15. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Special assessment commission may elect whether to determine special benefits and make special assessments under this section or under N.D.C.C. ch. 40-23.1; N.D.C.C. ch. 40-23.1 does not prohibit use of square feet as a factor in determining benefits under N.D.C.C. ch. 40-23. Buehler v. Mandan, 239 N.W.2d 522, 1976 N.D. LEXIS 186 (N.D. 1976).

Plaintiff companies’ action against the city after the city’s assessment of funds against the companies for street improvement was properly dismissed; the Special Assessment Commission’s failure to assess other properties outside the improvement district was not arbitrary, capricious or unreasonable under this section because the Commission lacked the authority for such an assessment. Crane Johnson Lumber Co. v. City of Fargo, 2003 ND 181, 671 N.W.2d 814, 2003 N.D. LEXIS 201 (N.D. 2003).

Statutory Requirements to Be Met.

An assessment for a street improvement upon abutting property is invalid unless it is authorized by law. Pickton v. Fargo, 10 N.D. 469, 88 N.W. 90, 1901 N.D. LEXIS 63 (N.D. 1901).

If the special assessment commission fails to comply with the statutory requirements, the assessment made is void. McKenzie v. Mandan, 27 N.D. 546, 147 N.W. 808, 1914 N.D. LEXIS 86 (N.D. 1914).

The inspection personally by members of the special assessment commission, determination of the benefits to each parcel, and a complete list of the property benefited, and the amount assessed, are prerequisites to the levying of the assessment. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012); Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

If the special assessment commission fails to comply with the statutes prescribing the procedure to be followed in making the assessment, equitable relief may be invoked. Hale v. Minot, 52 N.D. 39, 201 N.W. 848, 1924 N.D. LEXIS 108 (N.D. 1924); Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

The three requirements that must be met for a special assessment to conform to this section are: (1) the special benefit accruing to each lot or parcel of land from the improvement must be determined; (2) the special assessment levied against each lot must be limited to its just proportion of the total cost of the improvement, and; (3) the assessment against any lot or parcel of land must not exceed the benefit which has been determined to have accrued thereto. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

Collateral References.

Agricultural fair society or association, exemption of property of, 89 A.L.R.2d 1104.

Exemption of public school property from assessments for local improvements, 15 A.L.R.3d 847.

40-23-07.1. Validation of prior assessments. [Repealed]

Repealed by omission from this code.

40-23-07.2. Assessment of common area in townhouse development.

If a townhouse development includes a right in the townhouse owners to use any lot or tract as a common area in connection with the townhouse development, the common area shall not be separately assessed for benefits but each lot or tract whose owner has a right to use the common area shall be assessed for the benefit to the common area in the proportion that each owner’s right in the common area bears to all of the owners’ rights in the common area.

Source: S.L. 1979, ch. 446, § 1.

40-23-08. Assessments collected by suit from beneficial user of exempt property.

Whenever any real property is exempt from special assessments, or cannot be assessed, as provided in this title, for any improvement for any reason, and such real property otherwise would be assessable for such improvement, an assessment may be levied against the occupant or beneficial user of the property and collected by suit from the occupant or person enjoying the beneficial use thereof.

Source: S.L. 1905, ch. 62, § 161; R.C. 1905, § 2796; C.L. 1913, § 3721; R.C. 1943, § 40-2308; S.L. 1957, ch. 282, § 2; 1957 Supp., § 40-2308.

40-23-09. Assessment list to be prepared — Contents — Certificate attached to assessment list.

The commission shall make or cause to be made a complete list of the benefits and assessments setting forth, by legal description or street address or both, each lot or tract of land assessed, the amount each lot or tract is benefited by the improvement, and the amount assessed against each. There must be attached to the list of assessments a certificate signed by a majority of the members of the commission certifying that the same is a true and correct assessment of the property therein described to the best of their judgment and stating the several items of expense included in the assessment.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2801; S.L. 1913, ch. 85, § 1; C.L. 1913, § 3726; R.C. 1943, § 40-2309; S.L. 1989, ch. 491, § 1.

Notes to Decisions

Notice.

Special Assessment Commission complied with the statutory notice requirements; although the landowner claimed he was unable to locate the assessment list in the city auditor’s office, evidence established the list was located in the Special Assessment Office, which was part of the city auditor’s office. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-23-10. Notice of assessments and notice of hearing of objections.

  1. Unless otherwise provided under this section, the commission shall cause the assessment list, which list may not include the amount each lot or tract is benefited by the improvement, to be published once each week for two consecutive weeks in the official newspaper of the municipality.
  2. If the assessment list includes more than five thousand lots or tracts, the commission may cause it to be filed and made available for public inspection at all times after the first publication of the notice, during reasonable business hours, at such place as must be designated in the published notice.
  3. As an alternative to the notice procedures provided in subsections 1 and 2, the commission shall send a letter to all property owners of record on the assessment list stating their assessments. The letter may be sent by certified mail or by regular mail attested by an affidavit of mailing signed by the city auditor. When notice is provided under this subsection, the commission shall cause publication of a map outlining the assessment district with a notification stating that if an individual has not yet received a letter regarding that individual’s assessment, the individual should furnish the city auditor’s office with the individual’s present address and the auditor will then mail a copy of the individual’s assessments.
  4. The date set for such hearing must be not less than fifteen days after the first publication of the notice.
  5. A copy of the notice must be mailed to each public utility having property on the assessment list at least ten days before the hearing to its address shown on the tax rolls.
  6. Any notice under this section must include the time and place of a commission meeting to hear objections to assessments from an interested party or an interested party’s agent or attorney.
  7. Any notice under this section must be published on the city’s website.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2801; S.L. 1913, ch. 85, § 1; C.L. 1913, § 3726; R.C. 1943, § 40-2310; S.L. 1965, ch. 288, § 1; 1971, ch. 406, § 1; 1989, ch. 491, § 2; 2021, ch. 305, § 2, effective August 1, 2021.

Notes to Decisions

Notice.

Special Assessment Commission complied with the statutory notice requirements; although the landowner claimed he was unable to locate the assessment list in the city auditor’s office, evidence established the list was located in the Special Assessment Office, which was part of the city auditor’s office. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

DECISIONS UNDER PRIOR LAW

Mandatory Publication.

In proceedings for special assessment for grading of street, publication of the statutory notice was mandatory under city charter. McLauren v. Grand Forks, 43 N.W. 710, 6 Dakota 397, 1889 Dakota LEXIS 27 (Dakota 1889).

40-23-11. Alteration of assessments at hearing — Limitations.

At the hearing, the commission may make such alterations in the assessments as in its opinion may be just or necessary to correct any error in the assessment list. The commission may increase or diminish any assessment as may be just and necessary to make the aggregate of all assessments equal to the total amount required to pay the entire cost of the work for which such assessments are made or the part of such cost to be paid by special assessment. No assessment shall exceed the benefits as determined by the commission to the parcel of land assessed.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2801; S.L. 1913, ch. 85, § 1; C.L. 1913, § 3726; R.C. 1943, § 40-2311.

Notes to Decisions

Certified Assessment List.

Even if there were an error on the part of the assessment commission or its secretary to have certified the assessment list to the county auditor prior to the hearing before the city council, this error did not appear to have prejudiced the landowners, inasmuch as they did receive notice of the public hearing before the city council at which they had an opportunity to be heard, the hearing was apparently held, and the assessments were ultimately confirmed and certified. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

40-23-12. Confirmation of assessment list after hearing — Filing list.

The special assessment commission, after the hearing, shall confirm the list and attach thereto its further certificate certifying that the list is correct as confirmed by it. The commission thereafter shall file the assessment list in the office of the city auditor.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2801; S.L. 1913, ch. 85, § 1; C.L. 1913, § 3726; R.C. 1943, § 40-2312; S.L. 1967, ch. 323, § 156.

Notes to Decisions

Certified Assessment List.

Even if there were an error on the part of the assessment commission or its secretary to have certified the assessment list to the county auditor prior to the hearing before the city council, this error did not appear to have prejudiced the landowners, inasmuch as they did receive notice of the public hearing before the city council at which they had an opportunity to be heard, the hearing was apparently held, and the assessments were ultimately confirmed and certified. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

Notice.

Special Assessment Commission complied with the statutory notice requirements; although the landowner claimed he was unable to locate the assessment list in the city auditor’s office, evidence established the list was located in the Special Assessment Office, which was part of the city auditor’s office. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

Time for Judicial Review.

A judicial review of the question of benefit or detriment to the abutting property owners is premature until after the special-assessment commission has caused to be made a complete list of the benefits and assessments and has confirmed the list for certification to the office of the city auditor or the village clerk, as the case may be. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

40-23-13. Publication of notice of confirmation of assessment list and meeting for action upon assessments.

The city auditor shall publish at least once in the official newspaper of the municipality a notice stating that the assessment list has been confirmed by the special assessment commission and filed in the city auditor’s office and is open to public inspection. The notice also shall state the time when and the place where the governing body will act upon such assessment list. The assessment list shall be acted upon by the governing body at a regular or special meeting occurring more than fifteen days after the publication of such notice.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2802; S.L. 1909, ch. 53, § 1; C.L. 1913, § 3727; R.C. 1943, § 40-2313; S.L. 1961, ch. 276, § 1; 1967, ch. 323, § 157.

Notes to Decisions

Notice.

Special Assessment Commission complied with the statutory notice requirements; although the landowner claimed he was unable to locate the assessment list in the city auditor’s office, evidence established the list was located in the Special Assessment Office, which was part of the city auditor’s office. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-23-14. Aggrieved person may file notice of appeal.

Prior to the meeting at which the governing body will act upon the assessment, any aggrieved person may appeal from the action of the special assessment commission by filing with the city auditor a written notice of the appeal, stating therein the grounds upon which the appeal is based.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 166; R.C. 1905, § 2802; S.L. 1909, ch. 53, § 1; C.L. 1913, § 3727; R.C. 1943, § 40-2314; S.L. 1967, ch. 323, § 158.

Notes to Decisions

Certified Assessment List.

Even if there were an error on the part of the assessment commission or its secretary to have certified the assessment list to the county auditor prior to the hearing before the city council, this error did not appear to have prejudiced the landowners, inasmuch as they did receive notice of the public hearing before the city council at which they had an opportunity to be heard, the hearing was apparently held, and the assessments were ultimately confirmed and certified. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

Failure to Appeal.

If no appeal is taken from the finding of a special assessment commission as to the property benefited and the amount of the benefit to each parcel, and if the finding of such commission is confirmed by the city council or board of city commissioners, the determination as to such benefits is final, and will not be disturbed by a court of equity in the absence of fraud or other ground for equitable relief. Hale v. Minot, 52 N.D. 39, 201 N.W. 848, 1924 N.D. LEXIS 108 (N.D. 1924); Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

Premature Appeal.

Question of whether property of abutting property owners would be benefited and the extent of such benefits was premature, where special-assessment commission had not yet confirmed list of benefits and assessments, as well as review of special assessments to be levied upon property of abutting property owners. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Right to Appeal.

Even though railroad did not appear or file objection either before or at hearing by special assessment commission, the railroad was not estopped to appeal from determination of commission; the right of appeal is not conditioned upon appearance before the commission. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

Landowner was given an opportunity to appear and speak at the October 19, 2009 City Commission hearing and he also submitted written objections to the City Commission; the landowner had an opportunity to be heard and present evidence, and the City Commission considered his objections, such that the City Commission complied with the statutory requirements for review of the assessments by the Special Assessment Commission. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-23-15. Governing body to hear and determine appeals and objections to assessments — Altering assessments — Limitations.

At the regular or special meeting of the governing body at which the assessment list is to be acted upon, any person aggrieved by the determination of the special assessment commission in regard to any assessment who has appealed therefrom as provided in section 40-23-14 may appear before the governing body and present the person’s reasons why the action of the commission should not be confirmed. The governing body shall hear and determine the appeals and objections and may increase or diminish any of such assessments as it may deem just, except that the aggregate amount of all the assessments returned by the commission shall not be changed and no assessments as adjusted shall exceed the benefits to the parcel of land on which it is assessed as determined by the assessment commission.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, §§ 9, 10; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326j, 2327; S.L. 1905, ch. 62, § 167; R.C. 1905, § 2803; C.L. 1913, § 3728; R.C. 1943, § 40-2315; S.L. 1985, ch. 460, § 1.

Notes to Decisions

Certified Assessment List.

Even if there were an error on the part of the assessment commission or its secretary to have certified the assessment list to the county auditor prior to the hearing before the city council, this error did not appear to have prejudiced the landowners, inasmuch as they did receive notice of the public hearing before the city council at which they had an opportunity to be heard, the hearing was apparently held, and the assessments were ultimately confirmed and certified. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

Determination of Benefits and Amount of Assessment.

Pursuant to the express provisions of this section and N.D.C.C. §§ 40-23-05 and 40-23-07, the special-assessment commission is vested with the power and the authority to fix and determine not only the benefits but the amount of the assessment each property owner should be required to pay, subject to statutory review by the governing body provided for by this section. Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961).

Limit on Review Powers.

Upon the hearing by the board of city commissioners or the city council, such body has the power to review and correct errors of the special assessment commission in judgment and in computation merely. Robertson Lumber Co. v. Grand Forks, 27 N.D. 556, 147 N.W. 249, 1914 N.D. LEXIS 69 (N.D. 1914), overruled in part, D&P Terminal, Inc. v. City of Fargo, 2012 ND 149, 819 N.W.2d 491, 2012 N.D. LEXIS 152 (N.D. 2012).

Review Function Is Quasi-Judicial.

A city council or board of city commissioners, in reviewing the action of a special assessment commission in assessing benefits, exercises functions quasi-judicial in character. Ellison v. La Moure, 30 N.D. 43, 151 N.W. 988, 1915 N.D. LEXIS 99 (N.D. 1915), writ of error dismissed, 245 U.S. 628, 38 S. Ct. 62, 62 L. Ed. 519, 1917 U.S. LEXIS 1703 (U.S. 1917).

Right to Appeal.

Even though railroad did not appear or file objection either before or at hearing by special assessment commission, the railroad was not estopped to appeal from determination of commission; the right of appeal is not conditioned upon appearance before the commission. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

Landowner was given an opportunity to appear and speak at the October 19, 2009 City Commission hearing and he also submitted written objections to the City Commission; the landowner had an opportunity to be heard and present evidence, and the City Commission considered his objections, such that the City Commission complied with the statutory requirements for review of the assessments by the Special Assessment Commission. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-23-16. Confirmation of assessment list by governing body — Certifying and filing list.

The governing body shall confirm the assessment list. The city auditor shall attach to the list the city auditor’s certificate that the list is correct as confirmed by the governing body and then shall file the list in the city auditor’s office.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 167; R.C. 1905, § 2803; C.L. 1913, § 3728; R.C. 1943, § 40-2316; S.L. 1967, ch. 323, § 159.

Notes to Decisions

Certified Assessment List.

Even if there were an error on the part of the assessment commission or its secretary to have certified the assessment list to the county auditor prior to the hearing before the city council, this error did not appear to have prejudiced the landowners, inasmuch as they did receive notice of the public hearing before the city council at which they had an opportunity to be heard, the hearing was apparently held, and the assessments were ultimately confirmed and certified. Haman v. Surrey, 418 N.W.2d 605, 1988 N.D. LEXIS 30 (N.D. 1988).

40-23-17. Authority to levy assessments on property not originally assessed.

Any municipality that pays or provides for the payment of part or all of the cost of an improvement may subsequently levy special assessments for the cost of the improvement upon properties benefited by the improvement in the cases and in accordance with the procedure and subject to the conditions set forth in sections 40-23-17 through 40-23-21.

Source: S.L. 1959, ch. 379, § 1; 1993, ch. 404, § 1.

40-23-18. Assessments on property within the corporate limits.

A subsequent assessment may not be levied for any improvement on any property that was within the corporate limits of the municipality on the date of the execution of the first contract for any part of the improvement, unless a special improvement district was originally created for the improvement, and the property on which the subsequent assessment is to be levied was not originally assessed for the improvement but is subsequently included within another improvement district created to finance an improvement that will be connected directly or indirectly with the original improvement. Assessments under this section may be included in a separate column in the special assessment list prepared for the improvement district and levied upon the properties included in the district at the same time and upon the same notices and hearings as provided by law for the other assessments. A resolution determining the necessity of the improvement must have been adopted in the manner prescribed by law, referring to the designation of the district created for the original improvement and stating that a portion of the cost of the improvement is proposed to be assessed upon property within the improvement district.

Source: S.L. 1959, ch. 379, § 2; 1993, ch. 404, § 2.

40-23-19. Assessments on annexed property for previous benefits.

Any property that was outside the corporate limits of the municipality at the time of contracting for an improvement, which is benefited by the improvement and is subsequently annexed to the municipality, may be assessed for the improvement subject to the same conditions and by the same procedure as provided in section 40-23-18. The property that is benefited may also be assessed for any improvement, within or outside the corporate limits, which is determined by the governing body and the special assessment commission to benefit property that was outside the corporate limits at the time of contracting for the improvement, whether or not an improvement district was previously created for the improvement. For this purpose, the governing body may create one or more improvement districts comprising all or part of the annexed territory. The governing body may provide for the levy of special assessments upon such property in the manner provided in this title, but may dispense with the requirements of this title as to the adoption of a resolution of necessity and the advertisement and award of a contract for the improvement. Assessment proceedings under this section are valid notwithstanding any failure of the previous proceedings to comply with the provisions of law regarding improvements to be financed by special assessments. The governing body may use a reasonable depreciation schedule for the improvement in determining the amount of any special assessment subsequently levied under this section.

Source: S.L. 1959, ch. 379, § 3; 1993, ch. 404, § 3; 1995, ch. 392, § 1.

Notes to Decisions

Statutory Authorization.

Trial court properly upheld special assessments imposed on a taxpayer’s un-platted properties because the creation of a special improvement district that included the taxpayer’s land located outside the city limits was authorized by statute. Hector v. City of Fargo, 2010 ND 168, 788 N.W.2d 354, 2010 N.D. LEXIS 173 (N.D. 2010).

40-23-20. Equalization of original assessments.

In any assessment proceedings under sections 40-23-17 through 40-23-21 the governing body of the municipality shall have power to direct the cancellation of uncollected installments of special assessments previously levied for the same improvement, and the refund of installments prepaid, to the extent determined by it to be necessary to make the original assessments and the subsequent assessments bear as nearly as possible the same relation to the total benefits derived from the improvement by the respective properties assessed.

Source: S.L. 1959, ch. 379, § 4.

40-23-21. Use of collections of subsequent assessments.

  1. All collections of special assessments levied pursuant to sections 40-23-17 through 40-23-21 shall be credited as received to the special fund maintained by the municipality for the payment of any outstanding special improvement warrants, refunding improvement bonds, general obligation bonds, or revenue bonds which were issued to finance the improvement for which the assessments were levied, or, if no such obligations are outstanding, to such fund as the governing body may direct.
  2. If a governing body of a municipality levied and collected an infrastructure fee under section 40-22-01.3, the funds generated by the fee must be used for the payment of any outstanding special improvement warrants, refunding improvement bonds, general obligation bonds, or revenue bonds issued to finance the improvement. The governing body of a municipality may not use funds generated by an infrastructure fee imposed after July 1, 2021, for the payment of any outstanding special improvement warrants, refunding improvement bonds, general obligation bonds, or revenue bonds, issued before July 1, 2021, for the purpose of financing green field special assessments, as defined in section 40-05.1-06.

Source: S.L. 1959, ch. 379, § 5; 2021, ch. 303, § 5, effective July 1, 2021.

40-23-22. State property subject to special assessments.

Real estate within municipalities of this state owned by the state of North Dakota, other than for highway right-of-way purposes, may be subjected to special assessments for special improvements when benefited by such improvement and the state agency or department having control thereof is hereby authorized to expend public funds in payment of such special assessments.

Source: S.L. 1959, ch. 380, § 1.

Notes to Decisions

In General.

This section is an authorization to levy special assessments on state-owned property and expend public funds to pay for special assessments, but it is not an appropriation of funds for payment of special assessments. City of Fargo v. State, 260 N.W.2d 333, 1977 N.D. LEXIS 195 (N.D. 1977).

40-23-22.1. City flood control special assessment exemption for state property — Limitations.

  1. Notwithstanding any other provision of law, property of the state in a city subject to this section is exempt from special assessments levied for flood control purposes. Upon request by the governing body of the city, the exemption under this section may be completely or partially waived by the legislative assembly or the budget section if the legislative assembly is not in session. Any request considered by the budget section must comply with section 54-35-02.9. A city is subject to the exemption under this section in recognition of state financial assistance for flood control provided to the city pursuant to section 61-02.1-01 or other appropriation or commitment of state funds.
  2. The exemption under this section does not apply to any privately owned structure, fixture, or improvement located on state-owned land if the structure, fixture, or improvement is used for commercial purposes unless the structure, fixture, or improvement is primarily used for athletic or educational purposes at a state institution of higher education. An assessment allowed under this subsection must be based on the square footage or front footage of the land occupied by the structure, fixture, or improvement and made against the structure, fixture, or improvement and not against the land on which it is located.

Source: S.L. 2001, ch. 15, § 17; 2003, ch. 346, § 1; 2009, ch. 482, § 98; 2019, ch. 438, § 7, effective August 1, 2019.

Effective Date.

The 2009 amendment of this section by section 98 of chapter 482, S.L. 2009 became effective August 1, 2009.

40-23-23. Assessments for parking improvements.

For any improvement consisting of acquiring or leasing of property and easements and construction of parking lots, ramps, garages, and other facilities for motor vehicles, whether constructed pursuant to chapter 40-22, 40-60, or 40-61 or other law authorizing a municipality to acquire facilities used and usable in connection with the parking and storing of motor vehicles, the governing body of the municipality, on or before October first in any year, may cancel all installments of special assessments theretofore levied for such facilities which are due and payable in the following year and all subsequent years, and may levy a new assessment for such facility in accordance with the law authorizing the initial levy of special assessments therefor, except that the amount to be newly assessed shall not exceed the total principal amount of the installments of assessments so canceled. The new assessment shall follow the same district lines as the original assessment district, and the same method of assessment shall be used as was used in the original assessment. If the new assessment causes any prepaid payment to be refunded, the refund plus four and one-half percent interest per annum on the refunded prepaid payment shall be paid to the person, corporation, or limited liability company who prepaid the original assessment. In determining the special benefit and levying the new assessment against any lot or parcel, the previous determination of special benefit in any previous proceeding shall not be binding upon the assessment commission or governing body, but the new assessment levied on any lot or parcel, together with the principal amount of the installments of special assessments previously paid or to be paid in the current year for that lot or parcel with respect to that facility to be assessed, if any, shall not exceed the total special benefit to the lot or parcel from the facility for which the assessment is levied. In levying new assessments pursuant to this authority, an assessment commission and governing body of a municipality may take into account any changes in conditions affecting the benefits derived and to be derived from the improvement for which the assessments were initially levied against the respective properties assessed. Provided, however, that in canceling any special assessments previously levied and in levying new special assessments, a municipality cannot violate any covenants or agreements which it has made with holders of any obligations issued by the municipality to finance the acquisition of that improvement.

Source: S.L. 1971, ch. 407, § 1; 1993, ch. 54, § 106.

40-23-24. Audit of certain special assessment improvements.

If the costs of an improvement determined and assessed under section 40-23-07 or 40-23.1-04 exceed the costs of the work as contained in the engineer’s estimate under section 40-22-10 by seventy percent or more, the governing body of the city shall secure an audit of all costs included in the assessment for the project, prepared in accordance with generally accepted auditing standards. The audit report must include a separate statement of the engineer’s estimate of the cost of the work, the actual cost of the work, the cost of extra work, engineering fees, fiscal agent’s fees, attorney’s fees, publication costs, warrant printing costs, interest costs, and each separate item of expense incurred in making the improvement and levying the assessment for the improvement. The city shall make a copy of the audit report available without charge to any person who requests a copy. The audit report is not required if the costs of an improvement exceed the costs of the work as contained in the engineer’s estimate by seventy percent or more because of a petition to enlarge the district under section 40-22-09 or a request for additional work within the district by the owners of a majority of the area of the property in the district. Audit and copying expenses under this section must be paid by the city and may not be paid from special assessment funds.

Source: S.L. 2003, ch. 347, § 1.

Notes to Decisions

Compliance.

Plain language evidenced a legislative intent that the engineer’s report and resolution of necessity contained an estimate of the cost of the project and that the final cost and amount to be assessed could exceed the amounts listed in the resolution of necessity and engineer’s report; the landowner did not claim the city failed to comply with N.D.C.C. §§ 40-22-29 or 40-23-24, and the total amount of the special assessments did not improperly exceed the amounts estimated in the resolution of necessity and engineer’s report. Hector v. City of Fargo, 2012 ND 80, 815 N.W.2d 240, 2012 N.D. LEXIS 72 (N.D. 2012).

40-23-25. Future assessments on annexed property.

The special assessment commission shall prepare and file with the city auditor a list of estimated future assessments on property located outside the corporate limits of the city at the time of contracting for an improvement but which the special assessment commission determines is potentially benefited by the improvement and likely to be annexed to the city.

Source: S.L. 2003, ch. 347, § 2.

CHAPTER 40-23.1 An Alternative Method of Determining and Allocating Special Assessments

40-23.1-01. Improvement district — All property to be assessed — Basis.

All property included within the limits of a local improvement district shall be considered to be the property specially benefited by the local improvement and shall be the property to be assessed to pay the cost and expense thereof or such part thereof as may be chargeable against the property specially benefited. The cost and expense shall be assessed upon all the property in accordance with the special benefits conferred thereon in proportion to area and distance back from the marginal line of the public way or area improved.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-02. Improvement district — Zones.

For the purpose of ascertaining the amount to be assessed against each separate lot, tract, parcel of land, or other property therein, the local improvement district shall be divided into subdivisions or zones paralleling the margin of the street, avenue, lane, alley, boulevard, park drive, parkway, public place, or public square to be improved, numbered respectively first, second, third, fourth, and fifth.

The first subdivision shall include all lands within the district lying between the street margins and lines drawn parallel therewith and thirty feet [9.14 meters] therefrom.

The second subdivision shall include all lands within the district lying between lines drawn parallel with and thirty and sixty feet [9.14 and 18.29 meters] respectively from the street margins.

The third subdivision shall include all lands within the district lying between lines drawn parallel with and sixty and ninety feet [18.29 and 27.43 meters] respectively from the street margins.

The fourth subdivision shall include all lands, if any, within the district lying between lines drawn parallel with and ninety and one hundred twenty feet [27.43 and 36.58 meters] respectively from the street margins.

The fifth subdivision shall include all lands, if any, within the district lying between a line drawn parallel with and one hundred twenty feet [36.58 meters] from the street margin and the outer limit of the improvement district.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-03. Assessment rate per square foot.

  1. The rate of assessment per square foot [0.09 square meter] in each subdivision of an improvement district shall be fixed on the basis that the special benefits conferred on a square foot [0.09 square meter] of land in subdivisions first, second, third, fourth, and fifth, respectively, are related to each other as are the numbers forty-five, twenty-five, twenty, ten, and five, respectively, and shall be ascertained in the following manner:
    1. The products of the number of square feet [0.09 square meter] in subdivisions first, second, third, fourth, and fifth, respectively, and the numbers forty-five, twenty-five, twenty, ten, and five, respectively, shall be ascertained;
    2. The aggregate sum thereof shall be divided into the total cost and expense of the improvement; and
    3. The resultant quotient multiplied by forty-five, twenty-five, twenty, ten, and five, respectively, shall be the respective rate of assessment per square foot [0.09 square meter] for subdivisions first, second, third, fourth, and fifth.
  2. Provided, that in lieu of the above formula the rate of assessment per square foot [0.09 square meter] in each subdivision of an improvement district may be fixed on the basis that the special benefits conferred on a square foot [0.09 square meter] of land in subdivisions first, second, third, fourth, and fifth, respectively, are related to each other as the numbers 0.015000, 0.008333, 0.006666, 0.003333, and 0.001666, respectively, and the method of determining the assessment on each lot, tract, or parcel of land in the improvement district may be ascertained in the following manner:
    1. The products of the number of square feet [0.09 square meter] in subdivisions first, second, third, fourth, and fifth, respectively, for each lot, tract, or parcel of land in the improvement district and the numbers 0.015000, 0.008333, 0.006666, 0.003333, and 0.001666, respectively, shall be ascertained. The sum of all such products for each such lot, tract, or parcel of land shall be the number of “assessable units of frontage” therein;
    2. The rate for each assessable unit of frontage shall be determined by dividing that portion of the total cost of the improvement representing special benefits by the aggregate sum of all assessable units of frontage; and
    3. The assessment for each lot, tract, or parcel of land in the improvement district shall be the product of the assessable units of frontage therefor, multiplied by the rate per assessable unit of frontage.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-04. Levy of assessments — Items included in cost of improvement.

At any time after the contract and bond for any work for which a special assessment is required have been executed and approved by the governing body of the municipality and the total cost of such work shall have been estimated as nearly as practicable, the governing body may direct assessments to be levied for the payment of all or any part of such cost, and the city auditor shall ascertain and return, as provided in this chapter, the total assessment against each separate lot, tract, or parcel of land in the improvement district. The total cost of the improvement shall include the estimated construction cost under the terms of the contract; a reasonable allowance as determined by the governing body for cost of extra work which may be authorized under the plans and specifications; engineering, fiscal agent’s, and attorney’s fees for any services in connection with the authorization and financing of the improvement; cost of publication of required notices and printing of improvement warrants; and all expenses incurred in the making of the improvement and levy of assessment therefor. In the event that any error is made in estimating the cost, the governing body may direct a supplemental assessment to be made as provided in section 40-26-02.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-05. Parking lots — Ascertaining assessments.

Notwithstanding any section of chapter 40-23, the city auditor shall determine, on the basis that the special benefit conferred upon a lot, tract, or parcel of land in the improvement district, by the establishment of a parking lot, is proportionate to the need that the business conducted thereon has for a parking lot, the amount which each lot, tract, or parcel of land will be especially benefited by the construction of the work for which such special assessment is to be made, and shall assess against each lot, tract, or parcel of land such sum, not exceeding the benefits, as shall be necessary to pay its just proportion of the total cost of such work, or of the part thereof which is to be paid by special assessment, including all expenses incurred in making such assessment and publishing necessary notices with reference thereto. Such action shall be subject to the final approval of the governing body which may increase or diminish any of such assessments as it may deem just.

Source: S.L. 1967, ch. 332, § 1.

Cross-References.

Discontinuance of municipal parking lots, procedure, see §§ 40-22-44 to 40-22-46.

Parking facilities in municipalities, see chs. 40-60 and 40-61.

40-23.1-06. Political subdivisions not exempt from special assessments.

Benefited property belonging to counties, cities, school districts, park districts, and townships shall not be exempt from assessment and such public corporations whose property is assessed shall provide for the payment of such assessments, installments thereof, and interest thereon by the levy of taxes according to law. Nothing in this section shall be deemed to amend other provisions of law with reference to the levy of assessments on property sold for delinquent taxes.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-07. Assessment list to be prepared — Contents — Certificate attached to assessment list.

The city auditor shall make or cause to be made a complete list of the benefits and assessments setting forth, by legal description or street address or both, each lot, tract, or parcel benefited by the improvement, and the amount assessed against each. There must be attached to the list of assessments a certificate signed by the city auditor certifying that the same is a true and correct assessment of the property therein described to the best of just judgment and stating the several items of expense included in the assessment.

Source: S.L. 1967, ch. 332, § 1; 1989, ch. 491, § 3.

40-23.1-08. Publication of assessment list and notice of hearing of objections to list.

The city auditor shall cause the assessment list, which may not include the amount each lot, tract, or parcel is benefited by the improvement, to be published on the municipality’s website and once each week for two consecutive weeks in the official newspaper of the municipality, together with a notice of the time when and the place where the city auditor will meet to hear objections made to any assessment by any interested party or interested party’s agent or attorney. In lieu of publication of an assessment list, if it includes more than five thousand lots, tracts, or parcels, the city auditor may cause it to be filed and made available for public inspection at all times after the first publication of the notice, during reasonable business hours, at such place as shall be designated in the published notice. The date set for such hearing shall be not less than fifteen days after the first publication of the notice.

Source: S.L. 1967, ch. 332, § 1; 2021, ch. 305, § 3, effective August 1, 2021.

40-23.1-09. Alteration of assessments at hearing — Limitations.

At the hearing, the city auditor may make such alterations in the assessments as in the city auditor’s opinion may be just or necessary to correct any error in the assessment list. The city auditor may increase or diminish any assessment as may be just and necessary to make the aggregate of all assessments equal to the total amount required to pay the entire cost of the work for which such assessments are made or the part of such cost to be paid by special assessment. No assessment shall exceed the benefits to the parcel of land assessed.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-10. Confirmation of assessment list after hearing — Filing list.

The city auditor, after the hearing, shall confirm the list and attach thereto its further certificate certifying that the list is correct as confirmed. The city auditor thereafter shall file the assessment list in the city auditor’s office.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-11. Publication of notice of confirmation of assessment list and meeting for action upon assessments.

The city auditor shall publish at least once in the official newspaper of the municipality a notice stating that the assessment list has been confirmed by the city auditor and filed in the city auditor’s office and is open to public inspection. The notice also shall state the time when and the place where the governing body will act upon such assessment list. The assessment list shall be acted upon by the governing body at a regular or special meeting occurring more than fifteen days after the publication of such notice.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-12. Aggrieved person may file notice of appeal.

Prior to the meeting at which the governing body will act upon the assessment, any aggrieved person may appeal from the action of the city auditor by filing with the city auditor a written notice of the appeal, stating therein the grounds upon which the appeal is based.

Source: S.L. 1967, ch. 332, § 1.

40-23.1-13. Governing body to hear and determine appeals and objections to assessments — Altering assessments — Limitations.

At the regular meeting of the governing body at which the assessment list is to be acted upon, any person aggrieved by the determination of the city auditor in regard to any assessment, who has appealed therefrom as provided in section 40-23.1-12, may appear before the governing body and present that person’s reasons why the action of the city auditor should not be confirmed. The governing body shall hear and determine the appeals and objections and may increase or diminish any of such assessments as the governing body may deem just, in the event that the formula provided for in sections 40-23.1-02 and 40-23.1-03 proves to be inapplicable. The governing body may increase or diminish any assessment as may be just and necessary to make the aggregate of all assessments equal to the total amount required to pay the entire cost of the work for which such assessments are made or the part of such cost to be paid by special assessment. No assessment may exceed the benefits as determined, in accordance with this chapter by the city auditor, to the parcel of land assessed.

Source: S.L. 1967, ch. 332, § 1; 1989, ch. 69, § 47.

CHAPTER 40-24 Special Assessment Funds and Disbursements Thereof

40-24-01. Lien of special assessment — Attaches on approval of assessment list — Subject only to general tax lien.

A special assessment, together with all interest and penalties which accrue thereon, shall be and remain a lien upon the property upon which the assessment is levied from the time the assessment list is approved by the governing body until the assessment is paid fully. Such lien shall have precedence over all other liens except general tax liens and shall not be divested by any judicial sale. No mistake in the description of the property covered by the special assessment lien or in the name of the owner of such property shall defeat the lien if the assessed property can be identified by the description in the assessment list.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 7; 1899, ch. 41, § 9; 1899, ch. 42, § 3; R.C. 1899, §§ 2320, 2326i, 2327; S.L. 1905, ch. 62, § 167; R.C. 1905, § 2803; C.L. 1913, § 3728; R.C. 1943, § 40-2401.

Cross-References.

Gravel surfacing streets by special assessment, see ch. 40-54.

Residential paving projects, see ch. 40-56.

Notes to Decisions

Condemnation of Land.

An assessment lien perfected before the United States commenced eminent domain proceedings against the land attached to the compensation paid into court by the United States and no longer attached to the land itself. United States v. Nine Parcels of Land, 215 F. Supp. 771, 1963 U.S. Dist. LEXIS 9559 (D.N.D. 1963).

Urban Renewal Property Subject to Lien.

Unpaid special assessments that arose out of certain improvements made by the city and became due and payable some four years prior to an urban renewal condemnation action were liens upon the various parcels of land and payable by the urban renewal agency. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

DECISIONS UNDER PRIOR LAW

Additional Lien.

The owner of tax sale certificates may pay the subsequent delinquent general taxes without paying subsequent delinquent special assessments and the receipts for such taxes constitute an additional lien. State ex rel. Moore v. Furstenau, 20 N.D. 540, 129 N.W. 81, 1910 N.D. LEXIS 125 (N.D. 1910).

Collateral References.

Superiority of special or local assessment lien over earlier private lien or mortgage, where statute creating such special lien is silent as to superiority, 75 A.L.R.2d 1121.

40-24-02. Payment of special assessments — Interest.

All special assessments levied under this title may be paid without interest within ten days after they have been approved by the governing body and thereafter shall bear interest at an annual rate not exceeding one and one-half percentage points above the average net annual interest rate on any warrants or bonds for the payment of which they are pledged on the total amount thereof remaining unpaid.

Source: S.L. 1897, ch. 41, § 12; R.C. 1899, § 2327e; S.L. 1905, ch. 62, § 162; R.C. 1905, § 2797; C.L. 1913, § 3722; R.C. 1943, § 40-2402; S.L. 1965, ch. 289, § 1; 1971, ch. 249, § 13; 1981, ch. 269, § 11; 1981, ch. 416, § 1.

Notes to Decisions

Payment at Any Time.

Special assessments against land may be paid in full at any time with interest thereon to the date of payment. State ex rel. Bithulitic & Contracting v. Murphy, 20 N.D. 427, 128 N.W. 303, 1910 N.D. LEXIS 115 (N.D. 1910).

Urban Renewal Agency Liable for Assessments.

Unpaid special assessments that became due and payable some four years prior to urban renewal condemnation proceedings were payable by the urban renewal agency. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

40-24-03. Lien between vendor and vendee of special assessments.

As between a vendor and vendee of real property, unless the purchase contract otherwise provides, the installments of all special assessments for local improvements which are required to be certified and returned to the county auditor in each year shall be and become a lien upon the real property upon which the same are assessed from and after the first day of December in such year.

Source: S.L. 1905, ch. 62, § 180; R.C. 1905, § 2818; C.L. 1913, § 3743; R.C. 1943, § 40-2403; S.L. 1965, ch. 289, § 2.

Notes to Decisions

Applies to Property Outside City Limits.

This section is applicable to drainage assessments upon property outside city limits, as well as to property benefited by local improvements within the limits of incorporated cities. Murray Bros. & Ward Land Co. v. Buttles, 32 N.D. 565, 156 N.W. 207, 1916 N.D. LEXIS 130 (N.D. 1916).

Condemnation.

An urban renewal condemnation proceeding is a compulsory sale wherein the landowner is the involuntary vendor and the condemning agency is the vendee; hence, this section applies to such a proceeding so that the urban renewal agency is liable for unpaid special assessments on the condemned property. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

The commencement of eminent domain proceedings by the United States did not create a vendor-vendee relationship between the United States and the landowner within the meaning of this section. United States v. Nine Parcels of Land, 215 F. Supp. 771, 1963 U.S. Dist. LEXIS 9559 (D.N.D. 1963).

Uncertified Assessments Not Encumbrances.

Uncertified special assessments do not constitute liens or encumbrances such as are covered by a general warranty in a deed against encumbrances. Murray Bros. & Ward Land Co. v. Buttles, 32 N.D. 565, 156 N.W. 207, 1916 N.D. LEXIS 130 (N.D. 1916); Halverson v. Boehm, 76 N.W.2d 178, 1956 N.D. LEXIS 114 (N.D. 1956).

40-24-04. Sewer special assessments extended over a period of not more than thirty years.

Special assessments for the payment of the cost of constructing any sewer shall be payable in equal annual amounts, or in such annual amounts as will permit the annual increase in payment of principal to approximate the annual decrease in the interest on amounts remaining unpaid, extending over a period of not exceeding thirty years as the governing body may fix by ordinance or resolution.

Source: S.L. 1899, ch. 41, § 12; R.C. 1899, § 2326L; S.L. 1905, ch. 62, § 157; R.C. 1905, § 2792; S.L. 1913, ch. 84, § 1; C.L. 1913, § 3717; S.L. 1929, ch. 179, § 1; R.C. 1943, § 40-2404; S.L. 1967, ch. 333, § 1; 1983, ch. 460, § 1.

40-24-05. Water main and waterworks special assessments extended over a period of not more than thirty years.

Special assessments for the payment of the cost of constructing or laying any water mains or constructing any waterworks shall be payable in equal annual amounts, or in such annual amounts as will permit the annual increase in payment of principal to approximate the annual decrease in the interest on amounts remaining unpaid, extending over a period of not more than thirty years as the governing body may fix by ordinance or resolution.

Source: S.L. 1905, ch. 62, § 158; R.C. 1905, § 2793; S.L. 1913, ch. 84, § 2; C.L. 1913, § 3718; S.L. 1923, ch. 288, § 1; 1925 Supp., § 3718; R.C. 1943, § 40-2405; S.L. 1967, ch. 333, § 2; 1983, ch. 460, § 2.

40-24-06. Paving and repaving special assessments extended over a period of not more than thirty years.

Special assessments for the payment of the cost of paving or repaving shall be payable in equal annual amounts, or in such annual amounts as will permit the annual increase in payment of principal to approximate the annual decrease in the interest on amounts remaining unpaid, extending over a period of not more than thirty years.

Source: S.L. 1897, ch. 41, § 10; R.C. 1899, § 2327c; S.L. 1905, ch. 62, § 159; R.C. 1905, § 2794; C.L. 1913, § 3719; R.C. 1943, § 40-2406; S.L. 1983, ch. 460, § 3.

Notes to Decisions

Warrants.

A city may stipulate in special assessment warrants payable in installments that the city may pay the warrants before maturity and thus stop interest. State ex rel. Bithulitic & Contracting v. Murphy, 20 N.D. 427, 128 N.W. 303, 1910 N.D. LEXIS 115 (N.D. 1910).

40-24-07. Street improvement assessments extended over a period of not more than thirty years.

Special assessments for the expense of opening, widening, grading, graveling, or extending streets shall be payable in equal annual amounts, or in such annual amounts as will permit the annual increase in payment of principal to approximate the annual decrease in the interest on amounts remaining unpaid, extending over a period of not more than thirty years.

Source: S.L. 1905, ch. 62, § 160; R.C. 1905, § 2795; S.L. 1909, ch. 57, § 1; C.L. 1913, § 3720; R.C. 1943, § 40-2407; S.L. 1981, ch. 415, § 2; 1983, ch. 460, § 4.

40-24-08. Assessments for street beautification extended over a period of not more than ten years.

Special assessments for maintaining grass plots or trees or for parking or other improvements for the beautification of the streets of the municipality shall be payable in equal annual installments or in such annual amounts as will permit the annual increase in payment of principal to approximate the annual decrease in the interest on amounts remaining unpaid, extending over a period of not more than ten years as the governing body may fix by ordinance or resolution.

Source: S.L. 1897, ch. 41, § 13; 1899, ch. 41, § 14; R.C. 1899, §§ 2326n, 2327f; S.L. 1905, ch. 62, § 151; R.C. 1905, § 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, § 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2408; S.L. 1977, ch. 381, § 1; 1983, ch. 460, § 5.

40-24-09. Payments in full of assessments — Payments to county treasurer or city auditor — Receipts.

The owner of any property against which an assessment shall have been made under this title for the cost of any improvement may pay in full or in part the amount remaining unpaid and the unpaid interest accumulated thereon. The payment in full shall discharge the lien of the assessment upon the owner’s property. The payment may be made to the county treasurer upon all installments of the assessments which have been certified to the county auditor and may be made to the city auditor upon all portions of the assessment which have not been certified. Any person desiring to pay any portion of the assessment to the city auditor shall obtain from the city auditor a certificate of the amount due upon the assessment which has not been certified to the county auditor and shall present such certificate to the city auditor. The city auditor shall receive and collect such amount and issue a receipt to the person paying the assessment. The city auditor shall note upon the city auditor’s records the payment of the assessment.

Source: S.L. 1897, ch. 41, § 15; 1899, ch. 41, § 16; R.C. 1899, §§ 2326p, 2327h; S.L. 1905, ch. 62, § 170; R.C. 1905, § 2806; C.L. 1913, § 3731; R.C. 1943, § 40-2409; S.L. 1967, ch. 323, § 160; 1983, ch. 82, § 81.

Notes to Decisions

Payments at Any Time.

Special assessments against land may be paid in full at any time with interest thereon to the date of payment. State ex rel. Bithulitic & Contracting v. Murphy, 20 N.D. 427, 128 N.W. 303, 1910 N.D. LEXIS 115 (N.D. 1910).

40-24-10. One-fifth of cost of improvement may be paid by general assessment within constitutional debt limit.

Any municipality, at the option of its governing body, may provide for the payment by general taxation of all the taxable property in the municipality of not more than one-fifth of the cost of any improvement financed by the levying of special assessments other than the opening and widening of streets or the laying of sewer or water connections from the main to the curb line. Any amount which the municipality shall determine to pay by general assessment shall be considered as a part of the debt of the municipality and shall not be valid unless such amount is within the constitutional debt limit of such municipality. Any incorporated city, by a two-thirds vote of the qualified voters thereof voting upon the question at a general or special election, may increase its limit of indebtedness three percent on the assessed valuation of taxable property in such city beyond five percent of the valuation thereof, and by a majority vote, in like manner, may increase its limit of indebtedness four percent of such valuation without regard to the existing indebtedness of such city for the purpose of constructing or purchasing waterworks for furnishing a supply of water to the inhabitants of such city, or for the purpose of constructing sewers; provided, that such increase or increases must be duly voted before the levy of any general taxes exceeding the existing debt limit may be made to pay part of the cost of any such improvement. In making any contract with reference to any special improvement, the governing body may take into consideration such portion of the cost of the improvement as will be paid by general assessment and may make appropriations and levy taxes and assessments therefor in annual installments extending over the same period of time as is provided in the special assessments for such improvement. The appropriation may be made at such time as occasion may require and shall be included in the municipality’s first annual tax levy thereafter. The appropriation and levy, whether it is made as a part of the regular annual appropriation ordinance or otherwise, shall state the specific improvement for which the assessment is made and the tax levied, the amount thereof, and the district in which the improvement is made. The amount of such assessment and the moneys collected thereon shall become a part of the district fund upon which the warrants issued in payment for the improvement are to be drawn.

Source: S.L. 1905, ch. 62, § 163; R.C. 1905, § 2798; S.L. 1907, ch. 46, § 9; C.L. 1913, § 3723; R.C. 1943, § 40-2410; S.L. 1949, ch. 271, § 1; 1957 Supp., § 40-2410; S.L. 1973, ch. 330, § 1; 1983, ch. 461, § 1.

Cross-References.

Payment of costs of residential paving projects, see § 40-56-03.

40-24-11. Certification of assessments to county auditor.

Annually, the city auditor shall certify to the county auditor all uncertified installments of assessments which are to be extended upon the tax lists of the municipality for the current year in the manner provided in section 40-24-12. The annual certification shall continue until the amount of moneys on deposit in the fund established pursuant to section 40-24-18 is sufficient to cover outstanding principal of and interest on any obligations issued to fund such projects, and in addition thereto, to repay the city for any payments made by the city to fund deficiencies in the fund established pursuant to section 40-24-18.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2411; S.L. 1965, ch. 289, § 3; 1967, ch. 323, § 161; 1967, ch. 334, § 1; 1985, ch. 461, § 1.

40-24-12. City auditor to insert amount of improvements in county real estate book or other forms — Regulations governing.

The city auditor shall notify the county auditor not later than August twentieth in each year of any special assessments which were made in the municipality in addition to those reported in the previous year. The county auditor shall make and deliver to the city auditor on or before September twentieth each year a copy of the real estate assessment book or other forms for the current year covering all additions in which any special assessments have existed and where any will appear for the current year as advised by the city auditor. The city auditor shall insert in the proper columns under the appropriate headings the amount of each of the installments of the assessments on the lots or subdivisions of lots or tracts of land which are to be extended upon the tax lists of the municipality for the current year. The city auditor shall show the total amount of special assessments certified to the county auditor for the current year. When a division of property has been made since the original assessment, the city auditor shall make or cause to be made, with the assistance and advice of the special assessment commission, the proper division of the special assessments on the lots or tracts of land as the same are divided and assessed for the general taxes as furnished by the county auditor. The city auditor shall certify the special assessments to the county auditor by November first of each year.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2412; S.L. 1965, ch. 289, § 4; 1967, ch. 323, § 162; 1967, ch. 334, § 2.

40-24-13. Governing body to provide compensation for special assessment commission in making divisions of special assessments.

The governing body shall provide suitable compensation to the members of the municipal special assessment commission for services rendered in making the divisions of special assessments on property which was divided subsequent to the original assessment.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2413.

40-24-14. Extension of special assessments on tax lists — Collection — Payment over to municipality.

The county auditor shall extend the special assessments upon the tax lists of the municipality for the current year, and such assessments with interest and penalties shall be collected as general taxes are collected and paid over to the city auditor and shall be placed by the city auditor in the respective funds for which they were collected.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2414.

40-24-15. Special assessment record book kept by county auditor — Assessments certified for more than one year.

The county auditor shall keep in the county auditor’s office a special assessment record. When any municipality causes the installments of special assessments for a period of more than one year to be certified, the county auditor shall cause the special assessments so certified to be recorded in such book for the respective years and in the amounts shown in the certificate of the city auditor. In such event the certificate of the city auditor shall include a list of all lots and tracts of land upon which such assessments are levied, designating the purpose of the assessment, the fund to which it belongs, and the installment of such assessment for each year against each lot or tract, including interest thereon.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2415; S.L. 1965, ch. 289, § 5; 1967, ch. 323, § 163.

40-24-16. County treasurer to certify and receipt for amount of special assessments collected — Contents of certificate — Procedure for abatement.

Special assessments of any kind certified to the county auditor by the city auditor shall be paid to the county treasurer and included in the statement required by section 57-20-07.1 and the receipt required by section 57-20-08. If the county treasurer receives less than the full amount of taxes and special assessments due at any time on any lot or tract of real estate, the county treasurer shall allocate the amount received between taxes and special assessments in proportion to the respective amounts of taxes and special assessments due. When prorating any tax payment received prior to October fifteenth, the term “due”, as it pertains to real estate taxes, shall include only the first installment of real estate taxes. Special assessments shall not be subject to abatement or refund by proceedings under chapter 57-23, but shall be reviewed and corrected only in the manner and upon the conditions provided in chapter 40-26. The county treasurer, at the time set by law for the payment to the city auditor of all the taxes and special assessments collected during the preceding month, shall certify the amounts of special assessments collected. The certificate shall state specifically the lot or known subdivision thereof as it appears on the tax books of the county treasurer, and the block, addition, amount collected, and the amount credited to each lot or known subdivision thereof, and the year for which the sum was collected. The certificate shall be furnished to the city auditor.

Source: S.L. 1887, ch. 73, art. 16, § 6; 1893, ch. 36, § 1; R.C. 1895, § 2320; S.L. 1897, ch. 41, § 11; 1899, ch. 41, § 13; R.C. 1899, §§ 2320, 2326m, 2327d; S.L. 1905, ch. 62, § 168; R.C. 1905, § 2804; S.L. 1913, ch. 84, § 3; C.L. 1913, § 3729; S.L. 1915, ch. 75, § 1; 1925 Supp., § 3729; R.C. 1943, § 40-2416; S.L. 1965, ch. 289, § 6; 1967, ch. 323, § 164; 1967, ch. 335, § 1; 1983, ch. 82, § 82; 1999, ch. 502, § 1.

40-24-17. Interest and penalties added to special assessments — County treasurer to collect and pay over.

The county treasurer shall add to all special assessments the same interest and penalties that are added in the case of general taxes and at the same time. The county treasurer shall collect the interest and penalties with the special assessments and shall pay all such interest and penalties collected over to the city auditor.

Source: S.L. 1905, ch. 62, § 171; R.C. 1905, § 2807; C.L. 1913, § 3732; R.C. 1943, § 40-2417.

40-24-18. Special improvement moneys to be kept separate — Designation and numbering of funds — Diversion of moneys prohibited.

All special assessments and taxes levied and other revenues pledged under the provisions of this title to pay the cost of an improvement shall constitute a fund for the payment of such cost, including all principal of and interest on warrants and other obligations issued by the municipality to finance the improvement, and shall be diverted to no other purpose. The city auditor shall hold all moneys received for any such fund as a special fund to be applied to payment for the improvement. Each such fund shall be designated by the name and number of the improvement district in or for which said special assessments, taxes, and revenues are collected. When all principal and interest on warrants and other obligations of the fund have been fully paid, all moneys remaining in a fund may be transferred into the general fund of the municipality.

Source: S.L. 1887, ch. 73, art. 8, § 8; R.C. 1895, § 2183; S.L. 1897, ch. 41, § 13; 1899, ch. 41, § 14; R.C. 1899, §§ 2183, 2326n, 2327f; S.L. 1905, ch. 62, §§ 83, 151; R.C. 1905, §§ 2714, 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, §§ 3638, 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2418; S.L. 1961, ch. 277, § 1; 1975, ch. 377, § 1.

Notes to Decisions

Liability of City.

Money received by a city from special assessments is a trust fund in its custody to be applied to the redemption of warrants drawn upon such fund in the order in which the warrants were presented for payment and the city is liable to any warrant holder whose rights have been infringed by a misapplication of such funds. Red River Valley Nat'l Bank v. Fargo, 14 N.D. 88, 103 N.W. 390, 1905 N.D. LEXIS 13 (N.D. 1905).

Payment to City from Fund.

A city may reimburse itself out of a special improvement fund if it advances money for the improvement. Pine Tree Lumber Co. v. City of Fargo, 12 N.D. 360, 96 N.W. 357 (1903), decided prior to the enactment of Session Laws 1905, Chapter 62 (see now N.D.C.C. § 40-22-36).

40-24-19. Warrants and improvement bonds — Issuance — When payable — Amounts — Temporary warrants and temporary improvement bonds — Interest — Interest coupons — Negotiability — Eligibility as investments.

The municipality, at any time after making a contract for the construction of any improvement to be financed in whole or in part by assessments, under authority of any chapter of this title, or prior thereto but after the period for filing protests against the making of such improvement has expired and the protests filed, if any, have been heard and determined to be insufficient, and in anticipation of the levy and collection of such assessments and of any taxes or revenues derived from service charges pledged to pay for such improvement, may issue warrants or improvement bonds on the fund created for such improvement. The municipality is responsible to the holders of the warrants or improvement bonds for the proper advertisement and award of a contract or contracts or provision by other means for the completion of the improvement; for the acquisition of all land, easements, licenses, and permits required for such completion; and for the valid and final levy of special assessments upon all properties within the improvement district to be benefited by the improvement, in an aggregate principal amount equal to the total cost of the improvement as finally ascertained, less the portions thereof, if any, determined to be paid from taxes, service charges, and any other source. The issuance of the warrants or improvement bonds constitutes a representation and covenant binding upon the municipality that the aggregate benefits to be derived from the making of the improvement by the properties to be assessed therefor are not less than the aggregate amount of the special assessments so required to be levied. The warrants or improvement bonds shall be issued and shall mature in such amounts as in the judgment of the governing body will be provided for, at or before the maturity dates specified, by the taxes and assessments to be levied and spread and the revenues pledged therefor. In lieu of issuing definitive warrants or improvement bonds on any such fund, the governing body may by resolution authorize the issuance and sale of temporary warrants or temporary improvement bonds maturing in not to exceed three years from the date of issue of the first such warrant or temporary improvement bonds, to be repaid with interest from the proceeds of definitive warrants or improvement bonds maturing as hereinabove required, which the governing body shall issue and sell at or before the maturing date of said temporary warrants or temporary improvement bonds, in the amount required, with moneys theretofore received in such fund, to pay the total cost of the improvement and all temporary warrants or temporary improvement bonds theretofore issued on the fund, with interest then accrued thereon. The warrants or temporary improvement bonds must bear interest at a rate or rates and must be sold at a price, not less than ninety-eight percent of par, resulting in an average net interest cost not to exceed twelve percent per annum payable annually or semiannually, except that there is no interest rate ceiling on an issue sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. The definitive warrants or improvement bonds may bear interest at a rate or rates higher or lower than those borne by the temporary warrants or temporary improvement bonds, as determined by the governing body in effecting the sale thereof. In the sale of temporary warrants or temporary improvement bonds, the municipality may by resolution of the governing body agree to issue to the holder or holders thereof definitive warrants or improvement bonds upon specified terms as to interest, maturity, redemption provisions, and all other pertinent details, in the event that the municipality is unable to sell definitive warrants or improvement bonds to others upon more favorable terms. Coupons representing the interest for each year or lesser period may be attached to the warrants, whether definitive or temporary, or improvement bonds or temporary improvement bonds. All such warrants or bonds shall be negotiable within the meaning of and for all the purposes specified in title 41, and, to the same extent as general obligation bonds of the issuing municipality, are valid investments of the funds of any guardian, trustee, and other fiduciary of any kind or nature, any bank or other financial institution, any charitable, educational, or eleemosynary institution, and any public corporation or official, municipality, school district, or other political subdivision, including bond sinking funds, special improvement funds, municipal utility funds, and funds of the state of North Dakota and its instrumentalities and agencies.

Source: S.L. 1897, ch. 41, §§ 13, 14; 1899, ch. 41, §§ 14, 15; R.C. 1899, §§ 2326n, 2326o, 2327f, 2327g; S.L. 1905, ch. 62, § 151; R.C. 1905, § 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, § 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2419; S.L. 1957, ch. 283, § 1; 1957 Supp., § 40-2419; S.L. 1961, ch. 277, § 2; 1971, ch. 249, § 14; 1981, ch. 269, § 12; 1983, ch. 319, § 26; 1983, ch. 460, § 6; 1995, ch. 443, § 8.

Notes to Decisions

Interest.

The failure of the holder of warrants on special assessment funds, and of interest coupons attached thereto, to present them for payment at maturity did not prevent the subsequent accrual of interest thereon, if the holder did not know that money was available for their payment and was entitled to believe that none was available. Drexel State Bank v. La Moure, 207 F. 702, 1913 U.S. Dist. LEXIS 1346 (D.N.D. 1913).

Warrants and interest coupons payable out of a special assessment fund draw interest from maturity at the statutory rate where no rate is specified in the instrument. Drexel State Bank v. La Moure, 207 F. 702, 1913 U.S. Dist. LEXIS 1346 (D.N.D. 1913).

40-24-20. Contents of warrants.

Improvement warrants shall state upon their face for what purpose they were issued and the fund from which they are payable and shall be signed by the executive officer and countersigned by the city auditor under the seal of the municipality.

Source: S.L. 1897, ch. 41, § 13; 1899, ch. 41, § 14; R.C. 1899, §§ 2326n, 2327f; S.L. 1905, ch. 62, § 151; R.C. 1905, § 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, § 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2420; S.L. 1957, ch. 283, § 2; 1957 Supp., § 40-2420; S.L. 1967, ch. 323, § 165.

40-24-21. Warrants may be used as payment to contractor.

Special improvement warrants may be used in making payments on contracts for the improvements for which the special improvement fund was created at not less than the par value thereof.

Source: S.L. 1897, ch. 41, § 13; 1899, ch. 41, § 14; R.C. 1899, §§ 2326n, 2327f; S.L. 1905, ch. 62, § 151; R.C. 1905, § 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, § 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2421; S.L. 1961, ch. 277, § 3; 1983, ch. 460, § 7.

Notes to Decisions

Credit Sale Forbidden.

A sale for cash cannot be consummated until the cash remittance is made to the officer charged with the disbursement of the funds and the entry of a credit upon the books of a foreign corporation does not complete a sale of warrants. State ex rel. Kistler v. Hankinson, 53 N.D. 346, 205 N.W. 995, 1925 N.D. LEXIS 87 (N.D. 1925).

Liability of City.

The failure of a city to make a proper assessment upon property in a special assessment district to meet obligations under its warrants will subject the city to a general liability, although its credit be not pledged to meet the costs and expenses incident to the special improvement. Pine Tree Lumber Co. v. City of Fargo, 12 N.D. 360, 96 N.W. 357 (1903), decided prior to the enactment of Session Laws 1905, Chapter 62 (see now N.D.C.C. § 40-22-36); Dakota Trust Co. v. Hankinson, 53 N.D. 356, 205 N.W. 990, 1925 N.D. LEXIS 86 (N.D. 1925).

40-24-22. Payment and cancellation of warrants by city auditor.

The city auditor shall pay special improvement warrants and the interest coupons appurtenant thereto as they mature and are presented for payment out of the district funds on which they are drawn respectively and shall cancel the warrants when paid, except that definitive improvement warrants, when refunded pursuant to the provisions of sections 40-27-06 to 40-27-12, shall not be canceled but shall be retained by the municipality, in trust for the holders of the refunding improvement warrants or bonds issued thereunder, as therein provided. Definitive warrants shall be issued in lieu of temporary warrants at or before the time when any such warrants are to be so refunded.

Source: S.L. 1897, ch. 41, § 13; 1899, ch. 41, § 14; R.C. 1899, §§ 2326n, 2327f; S.L. 1905, ch. 62, § 151; R.C. 1905, § 2786; S.L. 1911, ch. 70, § 5; 1913, ch. 74, § 5; C.L. 1913, § 3711; S.L. 1923, ch. 287, § 1; 1925 Supp., § 3711; S.L. 1927, ch. 183, § 1; R.C. 1943, § 40-2422; S.L. 1961, ch. 277, § 4.

Notes to Decisions

Payment Mandatory.

Warrants must be paid in the order of their maturity and presentation, funds permitting, whether or not it appears that there is, or will be, enough in the fund to pay warrants subsequently maturing. First Nat'l Bank v. Ford, 70 N.D. 284, 293 N.W. 789, 1940 N.D. LEXIS 172 (N.D. 1940).

40-24-23. Matured improvement warrants or interest coupons may be used to pay special assessments.

Any matured special improvement warrant or interest coupon may be used in the payment of special assessments levied for the payment of the improvement for which the warrant or interest coupons were issued. The warrants or coupons so used shall be canceled and retired by the city auditor.

Source: S.L. 1905, ch. 62, § 169; R.C. 1905, § 2805; C.L. 1913, § 3730; R.C. 1943, § 40-2423; S.L. 1961, ch. 277, § 5.

40-24-24. Validation. [Repealed]

Repealed by S.L. 1981, ch. 277, § 2.

CHAPTER 40-25 Collection of Special Assessments — Obligations of Issuing Municipality

40-25-01. Sale of real property to enforce collections of delinquent special assessments.

Real property shall be sold to enforce the collection of special assessments or installments of special assessments which have become delinquent at the same time and in the same manner as is provided in title 57 for the sale of real property for delinquent general taxes. The sale shall be made by the same officer and upon like notice and subject to the same provision in relation to redemption, and the same record thereof shall be kept by the officer making the sale as in the case of the sale of real property for delinquent general taxes.

Source: S.L. 1905, ch. 62, § 172; R.C. 1905, § 2808; C.L. 1913, § 3733; S.L. 1925, ch. 199, § 7; 1925 Supp., § 3733; S.L. 1937, ch. 238, § 1; R.C. 1943, § 40-2501; S.L. 1955, ch. 88, § 5; 1957 Supp., § 40-2501.

Cross-References.

Gravel surfacing streets by special assessment, see ch. 40-54.

Residential paving projects, see ch. 40-56.

Collateral References.

Effect of certificate, statement (or refusal thereof), or error by tax collector or other public officer regarding unpaid assessments against specific property, 21 A.L.R.2d 1273.

Election of remedies: exclusiveness of method prescribed by statute or ordinance for enforcement of special assessment for public improvement or service, 88 A.L.R.2d 1250.

40-25-02. Sale of property if both general and special assessment taxes are delinquent — Absence of private bid.

If any real property is subject to sale at the same time for delinquent general taxes and also for delinquent special assessments or installments thereof, the delinquent general taxes and the delinquent special assessments or installments thereof shall be advertised and sold together in one sum and one certificate shall be issued therefor. If the real estate is sold for both delinquent general taxes and delinquent special assessments or installment of special assessments and there shall be no bidder therefor, the county auditor shall strike off the parcel of land to the county and one certificate of sale shall cover both general taxes and special assessments which are delinquent.

Source: S.L. 1905, ch. 62, § 172; R.C. 1905, § 2808; C.L. 1913, § 3733; S.L. 1925, ch. 199, § 7; 1925 Supp., § 3733; S.L. 1937, ch. 238, § 1; R.C. 1943, § 40-2502.

DECISIONS UNDER PRIOR LAW

Additional Lien.

The owner of a tax sale certificate may pay subsequent delinquent general taxes without paying subsequent special assessments, and a receipt for such taxes constitutes an additional lien. State ex rel. Moore v. Furstenau, 20 N.D. 540, 129 N.W. 81, 1910 N.D. LEXIS 125 (N.D. 1910).

40-25-03. Foreclosure of property if only special assessment is delinquent.

If there is no delinquent general tax against any parcel of real estate and it is foreclosed for special assessments alone, the notice of foreclosure of tax lien must contain a statement to the effect that the foreclosure is for special assessments. If the foreclosure is made only for special assessments assessed by a municipality or by a taxing district other than the county, the county auditor shall issue a tax deed to the municipality or taxing district which assessed such special assessments in the usual course of procedure.

Source: S.L. 1905, ch. 62, § 172; R.C. 1905, § 2808; C.L. 1913, § 3733; S.L. 1925, ch. 199, § 7; 1925 Supp., § 3733; S.L. 1937, ch. 238, § 1; R.C. 1943, § 40-2503; S.L. 1999, ch. 503, § 10.

40-25-04. Owners of tax sale certificates issued prior to March 17, 1937, not affected. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

40-25-05. Failure to have general taxes and special assessments sold separately not negligence of municipality. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

40-25-06. Negligence must be proved as fact.

In order to obligate such municipality or other taxing district on any issue of special assessment warrants, on the ground of negligence, the negligence of such municipality or other taxing district must be established and proved as a matter of fact, and in determining such question, the county auditor making the sale shall not be held to be the agent of the municipality or other taxing district which spread the special assessment so as to charge such municipality or taxing district with responsibility for any failure of such county auditor to perform the county auditor’s statutory duties in connection with such sale.

Source: S.L. 1937, ch. 238, § 2; R.C. 1943, § 40-2506.

40-25-07. Measure of damages when negligence of taxing district shown.

If it is shown that any municipality or other taxing district has been guilty of negligence which will amount to a breach of its duty to holders of special assessment warrants, such municipality or taxing district shall be liable in damages to the holders of the special assessment warrants. Such damages, however, shall be limited to the actual damages sustained by the warrant holder or holders as the direct and proximate result of such negligence. If the damage for negligence is predicated upon any act of the municipality or other taxing district which resulted in the loss of any special assessment lien upon real property, the measure of damages shall be limited to the value at the time of trial of the property upon which the lien was lost over and above the amount of the general taxes delinquent against such property at the time that the county acquired title thereto. The face amount of the warrants involved in any action shall be considered only as a limitation of the amount which may be recovered in such action on said special assessment warrants.

Source: S.L. 1937, ch. 238, § 3; R.C. 1943, § 40-2507.

40-25-08. Retroactive effect of sections 40-25-05, 40-25-06, and 40-25-07. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

40-25-09. Purchase of tax sale certificate by municipality from county — Assignment and redemption. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

40-25-10. Tax deed to municipality holding tax sale certificate for general taxes. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

CHAPTER 40-26 Correction, Reassessments, and Fund Deficiencies

40-26-01. Courts to review levy and apportionment of special assessments — De novo review for agricultural property assessments.

The courts shall review the levy and apportionment of the special assessments in all actions and proceedings involving the validity or apportionment of any special assessment for local or special improvements. If an action challenges the determination of benefits and special assessments imposed for agricultural property, the decision of the special assessment commission regarding agricultural property is not entitled to deference by the court and the court shall consider the determination of benefits and special assessments imposed for agricultural property de novo. An appeal taken under this section must be in accordance with the procedure provided in section 28-34-01.

Source: S.L. 1919, ch. 230, § 1; 1925 Supp., § 4053a1; R.C. 1943, § 40-2601; S.L. 1989, ch. 83, § 15; 2011, ch. 297, § 1.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 297, S.L. 2011 became effective August 1, 2011.

Note.

Section 4 of chapter 297, S.L. 2011 provides: “ EFFECTIVE DATE. This Act is effective for special assessments levied after July 31, 2011.”

Cross-References.

Gravel surfacing streets by special assessment, see ch. 40-54.

Residential paving projects, see ch. 40-56.

Notes to Decisions

Administrative Remedies.

Even though this section contemplates a review by the courts, it does so only when plaintiff has exhausted his administrative remedies. Hale v. Minot, 52 N.D. 39, 201 N.W. 848, 1924 N.D. LEXIS 108 (N.D. 1924).

Equitable Relief May Be Granted.

Where a special assessment commission in levying assessments fails to comply with statutory requirements or acts fraudulently or arbitrarily, equitable relief may be granted by the courts although the remedy of appeal has not been exhausted. Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

Legislative Intent.

The statutes provide for a procedure calculated to require property specially benefited by a public improvement to pay its share of the benefits received. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Presumption of Validity.

Generally, all presumptions are in favor of the validity of assessments for local improvements and the burden is on persons attacking the validity of assessments to show that they are invalid. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

Scope of Judicial Review.

Although prior to adoption of this section in 1919, owners of property affected by special assessment were precluded on question of benefits by action of special assessment commission as reviewed by city council or commission and were entitled to no relief from that determination unless there existed one of usual grounds of equitable interference; adoption of this chapter broadens scope of review so that when action is timely brought to set aside determination of special benefits of special assessment commission, court is now required to review determination to see if it is true and just, and if it is not, to make true and just determination, providing determination of special assessment commission has been appealed to governing body and has been acted upon by it. Foss Methodist Church v. Wahpeton, 157 N.W.2d 347, 1968 N.D. LEXIS 120 (N.D. 1968).

Even though a trial de novo was demanded on appeal from determination of special assessment commission, court’s review was limited to determination whether the commission was within its jurisdiction, was not mistaken as to applicable law, and did not act arbitrarily, oppressively, or unreasonably, and to determination whether there was substantial evidence to support or justify the determination. Soo Line R.R. v. City of Wilton, 172 N.W.2d 74, 1969 N.D. LEXIS 74 (N.D. 1969).

District court erred in substituting its judgment for that of special assessment commission where commission did not act arbitrarily, oppressively, or unreasonably and where there was substantial evidence to support and justify its determination. United Pub. Sch. Dist. v. Burlington, 196 N.W.2d 65, 1972 N.D. LEXIS 163 (N.D. 1972).

It is not the province of the court to substitute its judgment for that of the commission making the assessment, but merely to determine whether the commission was within its jurisdiction, was not mistaken as to the applicable law, and did not act arbitrarily, oppressively, or unreasonably, and to determine whether there is substantial evidence to support or justify the determination. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

When presented with review of special assessments, it is not the function of the supreme court to try the case anew. Cloverdale Foods Co. v. Mandan, 364 N.W.2d 56, 1985 N.D. LEXIS 260 (N.D. 1985).

40-26-02. Correcting errors, mistakes, and deficiencies in special assessments.

If errors or mistakes occur in making an assessment in respect to the total cost of the improvement or otherwise, or if there was a deficiency in any assessment, the governing body shall cause additional assessments to be made in the manner provided in section 40-26-03 to supply such deficiencies or correct such errors or mistakes. The total of all special assessments for an improvement shall not exceed the benefits to the property derived from such improvement. An additional assessment shall be a lien upon the lots and lands on which it is levied, shall be payable in the same manner and in the same installments, shall draw interest at the same rate, and shall be enforced through the same procedure as the original assessment.

Source: S.L. 1897, ch. 41, § 9; 1899, ch. 41, § 11; 1899, ch. 42, § 4; R.C. 1899, §§ 2326k, 2327a; S.L. 1905, ch. 62, § 152; R.C. 1905, § 2787; C.L. 1913, § 3712; R.C. 1943, § 40-2602.

40-26-03. Reassessment — Regulations governing — Enforcement and collection.

When a special assessment, or any part thereof, as to any lot, lots, or parcels of land assessed under any of the provisions of the laws of this state shall be set aside or declared void by any court for any cause, the governing body, without unnecessary delay, shall cause a reassessment or new assessment to be made to defray the expense of such improvement. Such reassessment or new assessment shall comply as closely as possible with the making of the assessment in the first instance and may bear interest from the date of the approval of the assessment so set aside. When the reassessment or new assessment shall have been made and confirmed by the governing body, it shall be enforced and collected in the same manner that other special assessments are enforced and collected.

Source: S.L. 1897, ch. 41, § 9; 1899, ch. 41, § 19; 1899, ch. 42, § 5; R.C. 1899, §§ 2326s, 2327b; S.L. 1905, ch. 62, § 153; R.C. 1905, § 2788; C.L. 1913, § 3713; R.C. 1943, § 40-2603.

Notes to Decisions

Authority of Municipality in General.

A municipality may pick up the thread of its proceedings where broken off and proceed to the ultimate end of the collection of the assessment, and this although the improvement may already have been completed. Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

40-26-04. Reassessment made upon refusal of judgment for collection of special assessments or assessment declared void.

When judgment for the collection or enforcement of any special assessment shall be refused or denied by any court, or when any court shall set aside any special assessment upon any lot or parcel of land or declare the same to be void for any cause, such lot or parcel of land may be reassessed or newly assessed from time to time until each separate lot, piece, or parcel of land has paid its proportionate part of the costs and expenses of such improvement.

Source: S.L. 1897, ch. 41, § 9; S.L. 1899, ch. 41, § 19; 1899, ch. 42, § 5; R.C. 1899, §§ 2326s, 2327b; S.L. 1905, ch. 62, § 153; R.C. 1905, § 2788; C.L. 1913, § 3713; R.C. 1943, § 40-2604.

40-26-05. Supreme court setting aside judgment — Effect — Reassessment.

When any special assessment shall be declared void or shall be set aside by the judgment of the supreme court for a cause affecting other like assessments, all assessments affected may be vacated by a resolution of the governing body of the municipality in which any such assessment was spread. A reassessment of the property affected thereby shall be made and may bear interest as is provided in section 40-26-03.

Source: S.L. 1897, ch. 41, § 9; 1899, ch. 41, § 19; 1899, ch. 42, § 5; R.C. 1899, §§ 2326s, 2327b; S.L. 1905, ch. 62, § 153; R.C. 1905, § 2788; C.L. 1913, § 3713; R.C. 1943, § 40-2605.

40-26-06. Error or omission does not vitiate assessment — Assessment altered if substantial injury has been done.

No error or omission which may be made in the proceedings of the governing body, or of any officer of a municipality in referring, reporting upon, ordering, or otherwise acting upon any local improvement to be financed by special assessments or in making or certifying any such assessment shall vitiate or in any way affect the assessment. If it shall appear that by reason of any such error or omission substantial injury has been done to any party or parties claiming to be aggrieved thereby, the court shall alter such assessment as may be just, and the same then shall be enforced.

Source: S.L. 1897, ch. 41, § 17; 1899, ch. 41, § 18; R.C. 1899, §§ 2326r, 2327j; S.L. 1905, ch. 62, § 154; R.C. 1905, § 2789; C.L. 1913, § 3714; R.C. 1943, § 40-2606.

Notes to Decisions

Validity of Assessment Presumed.

Generally, all presumptions are in favor of the validity of assessments for local improvements and the burden is on persons attacking the validity of the assessments to show that they are invalid. Reed v. Langdon, 78 N.D. 991, 54 N.W.2d 148, 1952 N.D. LEXIS 91 (N.D. 1952).

40-26-07. Actions to restrain collection of special assessments, avoid tax judgments — Duty of court.

The court shall determine the true and just amount which any property attempted to be specially assessed for a special improvement should pay to make the same uniform with other special assessments for the same purpose, whenever any action or proceeding shall be commenced and maintained before the court to prevent or restrain the collection of any special assessment or part thereof made or levied by the officers of any municipality for any purpose authorized by law, if such assessment shall be held to be void by reason of noncompliance with any provision of the laws of this state. Unless the action challenges the determination of benefits and special assessments imposed for agricultural property, the amount of the assessment as the same appears on the assessment list shall be prima facie evidence of the true and just amount, and judgment must be rendered and given therefor against the party liable for such special assessment without regard to the proceedings had for the levy thereof. The judgment shall be a lien upon the property upon which a special assessment shall have been levied, of the same force and effect as the lien of a special assessment, and the lien of such special judgment shall be enforced by the court in such action. No action for said purposes shall be maintained unless it is commenced within six months after the special assessment is approved.

Source: S.L. 1905, ch. 62, § 155; R.C. 1905, § 2790; C.L. 1913, § 3715; R.C. 1943, § 40-2607; 2011, ch. 297, § 2.

Effective Date.

The 2011 amendment of this section by section 2 of chapter 297, S.L. 2011 became effective August 1, 2011.

Note.

Section 4 of chapter 297, S.L. 2011 provides: “ EFFECTIVE DATE. This Act is effective for special assessments levied after July 31, 2011.”

Notes to Decisions

Application of Time Limitation.

No action can be maintained to set aside a special assessment after the expiration of six months from the date of confirmation by the city council. McKone v. City of Fargo, 24 N.D. 53, 138 N.W. 967 (1912).

An equitable action to assail a special assessment must be brought within six months after the approval of the assessment by the city council. Ellison v. La Moure, 30 N.D. 43, 151 N.W. 988, 1915 N.D. LEXIS 99 (N.D. 1915), writ of error dismissed, 245 U.S. 628, 38 S. Ct. 62, 62 L. Ed. 519, 1917 U.S. LEXIS 1703 (U.S. 1917).

Determining Amount to Be Paid.

Where a local improvement was completed but the commissioners failed to advertise for bids and an action was brought to set aside the assessment, it was the duty of the court to make reassessment insofar as the objector was concerned and to base the amount to be paid on the reasonable cost of such improvement but not exceeding the amount of the contract. McKenzie v. Mandan, 35 N.D. 107, 160 N.W. 852, 1916 N.D. LEXIS 175 (N.D. 1916).

Grounds for Review.

In the absence of some ground for equitable relief or some defect in the proceedings rendering the special assessment invalid, the court may not review the assessment of benefits made by the special assessment commission and confirmed by the city commission. Bismarck Home Builders Co. v. Bismarck, 50 N.D. 973, 198 N.W. 553, 1924 N.D. LEXIS 48 (N.D. 1924) (This decision concerned an assessment made prior to the enactment of N.D.C.C. § 40-26-01 and did not mention that section).

Limitations on Authority.

Where a contract for the erection of a standpipe was let and special assessments were levied without first creating a waterworks district, and without determining the necessity of the improvement, the supreme court has no power under the provisions of this section or N.D.C.C. § 40-26-06 alone to remand the case to the trial court for a reassessment. Kvello v. Lisbon, 38 N.D. 71, 164 N.W. 305, 1917 N.D. LEXIS 15 (N.D. 1917).

40-26-08. Municipality liable generally for deficiencies in special improvement fund.

Whenever all special assessments and all utility revenues and taxes, if any, appropriated and theretofore collected for a special improvement, made under authority of any law authorizing the payment of the cost thereof in whole or in part from special assessments, are insufficient to pay principal or interest then due on the special improvement warrants issued against such improvement, the governing body shall levy a tax upon all of the taxable property in the municipality for the payment of such deficiency. If at any time a deficiency is likely to occur within one year in such special improvement fund for the payment of principal and interest due on such warrants, the governing body, in its discretion, may levy a general tax upon all the taxable property in the municipality for the payment of such deficiency. This section applies to any deficiency in a special improvement fund, including a sewer and water connections assessment fund under chapter 40-28, sidewalk special fund under chapter 40-29, curbing special fund under chapter 40-31, and boulevard special fund under chapter 40-32. In case a balance remains unexpended in a special improvement fund after the payment of all warrants drawn thereon with interest, it shall be paid over or transferred to the general fund of the municipality.

Source: S.L. 1905, ch. 62, § 156; R.C. 1905, § 2791; C.L. 1913, § 3716; S.L. 1923, ch. 174, § 1; 1925 Supp., § 3716; S.L. 1929, ch. 171, § 1; 1931, ch. 197, § 1; R.C. 1943, § 40-2608; S.L. 1947, ch. 288, § 1; 1955, ch. 268, § 1; 1957 Supp., § 40-2608; S.L. 1961, ch. 278, § 1; 2015, ch. 439, § 39, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 39 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Notes to Decisions

Constitutionality.

Statutory provisions obligating a city to levy a general tax to pay a deficiency in the city’s special improvement fund do not impinge upon constitutional inhibitions against levying a tax for a private purpose, double taxation, nor the requirements of article IV, section 33, article X, section 1, or article X, section 18 of the constitution of the state. Marks v. Mandan, 70 N.D. 474, 296 N.W. 39, 1941 N.D. LEXIS 191 (N.D. 1941).

Contingent Liability.

Where a city organized a water district and a sewer district with authority to construct improvements, levy assessments, and issue warrants, the city had a contingent liability for any deficiency that could arise in the special assessment funds created for the payment of such warrants. Gunderson v. Maides, 71 N.D. 561, 3 N.W.2d 236, 1942 N.D. LEXIS 91 (N.D. 1942).

DECISIONS UNDER PRIOR LAW

Liability for Deficiencies.

In the absence of negligence a city was not liable on warrants issued prior to July 1, 1923, for deficiencies in special assessment funds arising from the failure of owners of property to pay legally assessed special assessments. Bankers' Trust & Sav. Bank v. Anamoose, 51 N.D. 596, 200 N.W. 103, 1924 N.D. LEXIS 54 (N.D. 1924); Schieber v. Mohall, 66 N.D. 593, 268 N.W. 445, 1936 N.D. LEXIS 206 (N.D. 1936); Marks v. Mandan, 70 N.D. 434, 296 N.W. 34, 1940 N.D. LEXIS 191 (N.D. 1940).

CHAPTER 40-27 Funding and Refunding Special Assessment Warrants

40-27-01. Municipality may issue bonds to purchase special assessment warrants.

A municipality may issue bonds for the purchase of outstanding special assessment warrants of the municipality before or after their maturity, at the best price obtainable, but not exceeding sixty percent of the par value thereof and the interest accrued to the date of purchase. The rate of interest on the bonds shall not exceed the rate of interest on the special assessment warrants for the purchase of which the bonds are issued, and such bonds shall not be sold for less than the par value thereof plus the interest accrued thereon.

Source: S.L. 1935, ch. 206, § 1; R.C. 1943, § 40-2701.

Cross-References.

Residential paving projects, see ch. 40-56.

Notes to Decisions

Constitutional Debt Limit Applies.

The issuance of bonds under chapter 206, S.L. 1935 (N.D.C.C. §§ 40-27-01 to 40-27-05) created a debt within the meaning of that term as used in article X, section 15, of the constitution of the state, and where the debt limit of a city had been reached, the purchase of special improvement warrants and issuance of bonds which were to become the general obligations of the city would not be permitted. Schieber v. Mohall, 66 N.D. 593, 268 N.W. 445, 1936 N.D. LEXIS 206 (N.D. 1936).

40-27-02. Issuance of funding bonds — Question need not be submitted to electors nor to board of budget review.

The bonds provided for in section 40-27-01 may be issued pursuant to a resolution or ordinance of the governing body of the municipality without submitting the question to the electors of the municipality. The question of the issuance of such bonds need not be submitted to the board of budget review in the manner provided for other bond issues.

Source: S.L. 1935, ch. 206, § 2; R.C. 1943, § 40-2702.

40-27-03. Funding bonds to mature serially — When installments fall due.

Bonds issued for the purchase of special assessment warrants shall mature serially. The first installment shall fall due not more than three years from the date of issuance of the bonds, and the last installment shall fall due not more than twenty years from the date of the bonds.

Source: S.L. 1935, ch. 206, § 2; R.C. 1943, § 40-2703.

40-27-04. Bonds to be general obligations of municipality.

Bonds issued pursuant to section 40-27-01 shall be the general obligations of the issuing municipality, and the full faith and credit and the unlimited taxing power of such municipality shall be pledged to their payment.

Source: S.L. 1935, ch. 206, § 3; R.C. 1943, § 40-2704.

40-27-05. Special fund for payment of bonds issued for purchase of special assessment warrants — Tax levy.

The governing body of a municipality which issues bonds for the purchase of special assessment warrants shall create a special fund for the payment of the principal and interest of such bonds as they become due and shall credit to such fund all special assessments collected for the payment of the special assessment warrants purchased. The governing body shall make a general tax levy annually on all the property in the municipality which, together with the special assessments collected, shall be sufficient to pay the principal and interest of the bonds when they become due. The levy imposed shall not be subject to any of the tax levy limitations imposed by section 57-15-08 or acts amendatory thereof. If any money remains in the special fund after the payment of the principal of all the bonds and the interest thereon, such balance may be transferred to the general fund.

Source: S.L. 1935, ch. 206, § 4; R.C. 1943, § 40-2705; S.L. 1967, ch. 323, § 166.

40-27-06. Refunding special assessment warrants or bonds — Purpose for which issuable.

Any municipality having valid outstanding special assessment warrants or bonds issued pursuant to this title which are due, or to become due within one year, in whole or in part as to principal or interest or both or which are redeemable either at the option of the municipality or with the consent of the warrant holders or bondholders may issue refunding special assessment warrants or bonds if there is not sufficient money in the special improvement fund against which such warrants or bonds are drawn to pay the principal or interest or both or if a deficiency is likely to occur in the fund within one year for payment of principal or interest thereon. Such refunding special assessment warrants or bonds may be issued for any of the following purposes:

  1. To extend the maturities of the special assessment warrants or bonds.
  2. To reduce the rate of interest on the special assessment warrants or bonds.
  3. To equalize the general tax which the municipality may be, or may become, obligated to levy to discharge deficiencies in the fund against which the special assessment warrants or bonds are drawn.
  4. To consolidate two or more outstanding issues of warrants or bonds.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 1; 1941, ch. 209, § 1; 1943, ch. 187, § 1; R.C. 1943, § 40-2706; S.L. 1983, ch. 460, § 8; 1985, ch. 462, § 1.

Notes to Decisions

Constitutional Debt Limit Applies.

Where the debt limit of a city had been reached, the city could not make refunding warrants, issued under chapter 207, S.L. 1935 (N.D.C.C. §§ 40-27-06 to 40-27-09, 40-27-11, and 40-27-12), general obligations of the city and where the city council threatened to do so, it would be restrained. Schieber v. Mohall, 66 N.D. 593, 268 N.W. 445, 1936 N.D. LEXIS 206 (N.D. 1936).

40-27-07. Refunding warrants or bonds authorized by resolution — Contents of resolution.

The issuance of refunding warrants or bonds may be authorized by the governing body of the municipality by resolution. Such resolution shall describe the warrants or bonds to be refunded and the amount, maturity, and other details of the refunding warrants or bonds.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 2; R.C. 1943, § 40-2707; S.L. 1983, ch. 460, § 9.

40-27-08. Contents of refunding warrants and bonds — Redemption — Negotiability — Eligibility as investments.

The refunding warrants or bonds shall bear such date, be in such denominations, and mature at such time or times, not exceeding thirty years from date of issue, as the governing body shall determine. Such warrants or bonds may be made subject to redemption at any specified time or times if it is so provided in the initial resolution. Refunding warrants or bonds issued pursuant to this chapter may be designated as “refunding improvement warrants” or “refunding improvement bonds” as the governing body shall determine; provided, that nothing herein shall be deemed to subject such warrants or bonds to chapter 21-03 with reference to general obligation bonds of the municipality. All such warrants or bonds shall be negotiable within the meaning of and for all the purposes specified in title 41 and shall be valid investments for fiduciary, corporate, and public funds to the same extent as improvement warrants or bonds.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 2; R.C. 1943, § 40-2708; S.L. 1953, ch. 257, § 1; 1957, ch. 283, § 3; 1957 Supp., § 40-2708; S.L. 1983, ch. 460, § 10.

Cross-References.

Uniform Commercial Code, commercial paper and investment securities, see chs. 41-03 and 41-08.

40-27-09. Sale or exchange of refunding warrants or bonds — Issuance — Agreement by governing body to exchange.

Refunding warrants or bonds may be sold for cash in such manner as the governing body may direct, and the proceeds used to pay the warrants or bonds described in the initial resolution, or may be exchanged for such warrants or bonds, but no exchange shall be made at less than par plus accrued interest, and no sale shall be made at less than ninety-eight percent of par plus accrued interest on the refunding warrants or bonds. Refunding warrants or bonds may be issued from time to time as the original warrants or bonds mature or are called for payment and redemption or may be sold to pay, or, by agreement with the holders thereof, may be exchanged for, warrants or bonds which are not due. The governing body may enter into an agreement with the holders of outstanding warrants or bonds relating to an exchange of such warrants or bonds for refunding warrants or bonds and may provide, in its discretion, that the agreement shall be effective only when the holders of not less than seventy-five percent of the warrants or bonds shall have entered into the agreement.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 3; 1941, ch. 209, § 2; R.C. 1943, § 40-2709; S.L. 1969, ch. 376, § 3; 1983, ch. 460, § 11.

40-27-10. Expense of issuing refunding special assessment warrants or bonds chargeable to special improvement fund.

Any municipality that issues refunding special assessment warrants or bonds may incur and pay the reasonable incidental expenses, including the cost of printing and legal fees. All such expenses shall be payable solely out of moneys in the special improvement fund or funds from which the refunded warrants or bonds are payable or out of money derived from the sale of warrants or bonds drawn on the fund from which the refunding warrants or bonds are payable.

Source: S.L. 1941, ch. 209, § 2; R.C. 1943, § 40-2710; S.L. 1983, ch. 460, § 12.

40-27-11. Special fund created for payment of refunding special assessment warrants or bonds — Procedure on paying refunded warrants or bonds.

A special fund or special funds shall be created in accordance with this section for the payment of refunding special assessment warrants or bonds. Such special fund may be created as a single consolidated fund for warrants or bonds issued to refund special assessment warrants or bonds of more than one district, or a separate special fund may be created for warrants or bonds issued to refund special assessment warrants or bonds of each district. In either case, the refunded warrants or bonds shall not be canceled but shall be retained by the municipality as an asset of the fund from which the refunding warrants or bonds are payable. The special fund or funds from which the refunded warrants or bonds are payable shall be continued, and payments therefrom shall be made on the warrants or bonds drawn thereon, in the same manner as though none of such warrants or bonds had been refunded. All payments made on the principal and on the interest of refunded warrants or bonds shall be credited to the fund from which the appropriate refunding warrants or bonds are payable and shall be applied in payment of the principal and on the interest on the refunding warrants or bonds in the manner prescribed by the resolution authorizing the issuance of such refunding warrants or bonds. To the extent refunding warrants or bonds are issued to refund the principal or interest, or both, of warrants or bonds, due or to become due within one year, for which a deficiency exists or is likely to exist in the fund or funds against which such outstanding warrants or bonds are drawn due to nonpayment or anticipated nonpayment of special assessments, any payments of such delinquent special assessments and such amounts of accrued interest and penalty thereon as necessary shall be set aside for the payment or redemption of the refunding warrants or bonds issued to fund such delinquencies.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 4; 1941, ch. 209, § 3; R.C. 1943, § 40-2711; S.L. 1983, ch. 460, § 13; 1985, ch. 462, § 2.

40-27-12. Rights of warrant holders or bondholders to be preserved — Tax levy for deficiency — When levied.

A municipality issuing refunding special assessment warrants or bonds shall preserve and enforce, for the security of the refunding warrants or bonds, all of the rights and duties which constituted security for the refunded warrants or bonds. At the date of the maturity of the last maturing warrant or bond of the original issue, the governing body shall levy a tax for the payment of any deficiency in the special improvement fund against which the refunded special assessment warrants or bonds were drawn. Such tax may be made payable in the years and in the amounts required to pay the principal of and interest on the refunding warrants or bonds as the same becomes due.

Source: S.L. 1927, ch. 195, § 1; 1929, ch. 178, § 1; 1935, ch. 207, § 4; 1941, ch. 209, § 3; R.C. 1943, § 40-2712; S.L. 1983, ch. 460, § 14.

40-27-13. Refunding callable funding bonds or refunding warrants — Terms and conditions.

Any municipality may refund, according to the procedure set forth in this chapter, any funding bonds issued under this chapter which are callable prior to maturity or which shall be surrendered voluntarily for refunding, by the issuance of bonds upon the same terms and conditions except as to interest, whenever by so doing a saving in interest can be effected. Any municipality having valid outstanding refunding special improvement warrants or bonds issued pursuant to this chapter, which are due, or to become due within one year, in whole or in part as to principal or interest or both or which are redeemable either at the option of the municipality or with the consent of the warrantholders or bondholders, may issue new refunding special improvement bonds to refund such outstanding warrants or bonds, if there is not sufficient money in the fund or funds against which such outstanding refunding warrants or bonds are drawn to pay the principal or interest or both or if a deficiency is likely to occur in the fund or funds within one year for payment of principal or interest thereon. Such new bonds may be issued for the purpose of extending the maturities of the outstanding refunding warrants or bonds, or reducing the debt service thereon, or equalizing the general tax which the municipality may be, or may become, obligated to levy to discharge deficiencies in the fund or funds against which they are drawn. Such new bonds shall be issued according to the procedure set forth in this chapter for the issuance of the original refunding special improvement warrants or bonds. If refunding improvement bonds are issued and sold six months or more before the earliest date on which all outstanding refunding improvement warrants or bonds of the issue to be refunded thereby mature or are prepayable in accordance with their terms, the proceeds of the new bonds, including any premium and accrued interest, shall be deposited in escrow with a suitable bank or trust company, having its principal place of business within or without the state, and shall be invested in such amount and in securities maturing on such dates and bearing interest at such rates as shall be required to provide funds sufficient to pay when due the interest to accrue on each warrant or bond refunded to its maturity or, if it is prepayable and called for redemption, to an earlier prior date upon which it may be called for redemption, and to pay and redeem the principal amount of each such warrant or bond at maturity or, if prepayable and called for redemption, at the earlier redemption date, and any premium required for redemption on such date, or in the case of a crossover refunding, must be invested in securities irrevocably appropriated to the payment of principal and interest on the refunding improvement bonds until the date the proceeds are applied to the payment or redemption of the bonds or warrants to be refunded. The governing body’s resolution authorizing the new bonds shall irrevocably appropriate for these purposes the escrow fund and all investments thereof, which shall be held in safekeeping by the escrow agent, and all income therefrom, and may provide for the call for redemption of all prepayable bonds in accordance with their terms. The securities to be purchased with the escrow fund shall be limited to general obligations of the United States, securities whose principal and interest payments are guaranteed by the United States, and securities issued by the following United States government agencies: banks for cooperatives, federal home loan banks, federal intermediate credit banks, federal land banks, and the federal national mortgage association. Such securities shall be purchased simultaneously with the delivery of the new bonds. Moneys on hand in the refunding improvement bond fund maintained for the payment of the outstanding bonds, and not immediately needed for the payment of interest or principal due, or other legally available funds of the municipality may likewise be deposited in the escrow fund and invested in the same manner as the proceeds of the new bonds, to the extent consistent with the provisions of resolutions authorizing the outstanding bonds.

Source: S.L. 1947, ch. 287, § 1; 1951, ch. 269, § 1; R.C. 1943, 1957 Supp., § 40-2713; S.L. 1963, ch. 296, § 1; 1977, ch. 382, § 1; 1981, ch. 273, § 2; 1985, ch. 462, § 3; 1987, ch. 236, § 3.

CHAPTER 40-28 Service Connections

40-28-01. Connections with sewers and other mains — Service connections.

The governing body of a municipality, when it shall deem it necessary, by resolution, may require the owners of all property abutting on any street, avenue, or alley to construct or cause to be constructed, at the expense of and as a charge against the property fronting on such street, avenue, or alley, the connections from any sewer, water main, gas main, steam or other pipe, wire cable, conduit, or other service connection pipe or wire under the surface of such street, avenue, or alley to a point inside of the curb line on either or both sides of such street, avenue, or alley at such intervals along the whole length thereof as may be necessary to supply and serve each lot, part of lot, or parcel of land in accordance with the municipal ordinance governing the laying and construction of such connections. A resolution may be adopted pursuant to this section requiring the service connection to be made at the time of the laying and construction of the sewer, main, pipe, cable, conduit, or wire, as a part of the contract for laying and constructing the same, or at any subsequent time.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2801.

Cross-References.

Residential paving projects, see ch. 40-56.

40-28-02. Notice to owner or occupant to construct service connection pipes or wires.

Upon the adoption of the resolution as provided in section 40-28-01, the city auditor shall publish in the official municipal newspaper once each week for two successive weeks a notice to the owners or occupants of the property involved stating what work is to be done and the time within which it is to be completed. The notice may be general as to the owners but shall be specific as to the descriptions of the lots or parcels of land in front, along the side, or in the rear of which the improvement is to be made and which the improvement affects.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2802; S.L. 1967, ch. 323, § 167.

40-28-03. Municipality may contract work when property owner fails to make service connections as required.

If the connection with the sewer, main, wire, or conduit is not made by the owner of the property within the time specified in the notice given by the city auditor, the governing body shall order such work done by such person as it may contract with therefor at the expense of the lot or parcel of land adjoining each improvement or service connection. Such work shall be administered and observed under the supervision of the engineer acting for the municipality. The expense of making such connection, including the expense of giving all notices relating thereto, of making the assessments therefor, and of any other nature, shall be assessed by the engineer against the lot or parcel of land properly chargeable therewith, and the assessment list shall be filed in the office of the city auditor. The city auditor shall cause such list, together with a notice of the time when and place where the governing body will meet to consider the approval thereof, to be published in one issue of the official newspaper of the municipality at least ten days prior to the meeting of the governing body at which the approval of the assessment will be considered.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2803; S.L. 1967, ch. 323, § 168; 1997, ch. 353, § 2.

40-28-04. Assessments extended over period of from one year to five years — Certification of assessments.

Assessments for improvements made under the provisions of this chapter shall be paid in equal payments extending over a period of not less than one year nor more than five years, as the governing body of the municipality may determine. Such assessments as may be approved by the governing body shall be certified by the city auditor to the county treasurer for collection, and such assessments shall be collected in the same manner as special assessments are collected.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; S.L. 1927, ch. 185, § 1; R.C. 1943, § 40-2804; S.L. 1967, ch. 323, § 169.

40-28-05. Sewer and water connections assessment fund — Warrants — Payment.

All money collected from assessments for laying and constructing sewer, water, and other service connections provided for in this chapter shall be kept in a fund called “sewer and water connections assessment fund”, and warrants shall be drawn on such fund for the payment of the cost of such connections. All sewer and water connections assessment warrants shall be payable as specified and in such amount as in the judgment of the governing body will be provided by the taxes and assessments. Such warrants shall bear interest at a rate of not more than seven percent per annum and interest shall be payable annually. They may have coupons attached representing each year’s interest. The warrants shall state on their face the purpose for which they were issued and from what fund they are payable, and shall be signed by the executive officer, countersigned by the city auditor under the seal of the municipality, and shall be in denominations of not to exceed one thousand dollars each. The warrants may be used to make payment on contracts for making the connections or may be sold for cash at not less than par value thereof and the proceeds credited to the special fund and used to pay for such connections. Except as otherwise provided in section 40-26-08, a municipality shall not be liable generally on any contracts for the making of such connections and shall not be required to pay funds raised by general taxation upon any such contract.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; S.L. 1927, ch. 185, § 1; R.C. 1943, § 40-2805; S.L. 1955, ch. 269, § 1; 1957 Supp., § 40-2805; S.L. 1967, ch. 323, § 170; 2015, ch. 439, § 40, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 40 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-28-06. Plans and specifications ordered for service connections.

After the adoption of the resolution declaring the necessity of making the service connections as provided in section 40-28-01, the governing body, by resolution, shall direct the engineer acting for the municipality to prepare plans and specifications for the work and file them with the city auditor.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2806; S.L. 1967, ch. 323, § 171.

40-28-07. Bids for service connections.

The governing body shall direct the city auditor to advertise for bids in accordance with chapter 48-01.2 for the laying and construction of service connections in accordance with the plans and specifications therefor.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2807; S.L. 1967, ch. 323, § 172; 1979, ch. 91, § 6; 1981, ch. 142, § 3; 1995, ch. 443, § 9; 2007, ch. 403, § 6.

Effective Date.

The 2007 amendment of this section by section 6 of chapter 403, S.L. 2007 became effective August 1, 2007.

40-28-08. Bond required of successful bidder for making service connections — Amount — Conditions — Approval. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-28-09. Contracts for making service connections — Execution — Contents.

A contract let under the provisions of this chapter shall require the work to be done pursuant to the plans and specifications on file in the office of the city auditor, subject to the approval of the engineer acting for the municipality, and shall provide further:

  1. That the governing body shall have the right to suspend the work at any time for improper construction and to relet the contract therefor or to order a reconstruction of the work as to any part thereof improperly done;
  2. The time within which the work shall be completed;
  3. The period of time for which the work shall be guaranteed as to workmanship and materials;
  4. The fund from which the contract price is to be paid by the municipality;
  5. That the consideration expressed in the contract is payable only in warrants drawn on the fund described in the contract;
  6. That the municipality assumes and incurs no general liability under such contract; and
  7. That failure of the engineer to reject work and materials which are not up to specifications and acceptance of the job by the engineer shall not release the contractor from liability for any failure on the contractor’s part to perform work or furnish materials in accordance with the plans and specifications.

Such contract shall be entered into in the name of the municipality and executed on its behalf by its executive officer and countersigned by its auditor, and the seal of the municipality affixed thereto. When the contract has been signed by the contractor, it shall be filed in the office of the city auditor. The engineer acting for the municipality shall supervise and inspect the work during its progress.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2809; S.L. 1967, ch. 323, § 174.

40-28-10. Contractor may be paid from time to time on estimates.

If the contractor shall perform the work designated in the contract properly, the governing body, from time to time as the work progresses and in its discretion, may pay such contractor between ninety and ninety-five percent of the amount earned under the contract to the time of payment as determined by estimates made by the engineer acting for the municipality. Any payments made under this section shall be by warrants drawn on the sewer and water connections assessment fund.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2810; S.L. 1963, ch. 295, § 2.

40-28-11. Duties of street commissioner in certain cities.

In cities which have no city engineer, the street commissioner shall perform the duties enjoined upon the city engineer under the provisions of this chapter, if no engineer is employed by the governing body of the municipality for such purposes.

Source: S.L. 1905, ch. 62, § 177; R.C. 1905, § 2815; S.L. 1907, ch. 46, § 10; C.L. 1913, § 3740; S.L. 1917, ch. 71, § 1; 1925 Supp., § 3740; R.C. 1943, § 40-2811.

Cross-References.

City engineer or police chief serving as street commissioner, see § 40-20-04.

CHAPTER 40-29 Sidewalks

40-29-01. Width, materials, and manner of construction of sidewalks prescribed by ordinance.

The governing body, by ordinance, shall prescribe the width of sidewalks and may establish different widths in different locations. The governing body shall determine and prescribe the kind and quality of material of which and the manner in which sidewalks shall be constructed, taking into consideration the business and the amount of travel in the vicinity of each sidewalk. The ordinance shall be specific, and all contracts for the construction of sidewalks shall be let with reference thereto.

Source: S.L. 1877, ch. 73, art. 15, § 19; R.C. 1895, § 2290; R.C. 1899, § 2290; S.L. 1905, ch. 62, § 130; 1905, ch. 184, § 1; R.C. 1905, §§ 2764, 2899; C.L. 1913, §§ 3689, 3905; S.L. 1921, ch. 136, § 1; 1925 Supp., § 3905; R.C. 1943, § 40-2901.

Cross-References.

Grade of sidewalk, governing body may prescribe, see § 40-39-03.

Unincorporated townsite, construction of sidewalks, see ch. 58-16.

Collateral References.

Liability as between municipality and owner or occupant for conditions of covering over opening or vault in sidewalk, 31 A.L.R.2d 1334, 1354.

Degree of inequality in sidewalk which makes question for jury or for court as to municipality’s liability, 37 A.L.R.2d 1187.

40-29-02. Duty of property owners to maintain sidewalks.

The owner of any lot or parcel of land adjoining any street, lane, or alley in any incorporated municipality shall construct, reconstruct, and maintain in good repair such sidewalks along the street, lane, or alley adjacent to the owner’s lot or parcel of land as have been constructed by the municipality or as have been ordered constructed by ordinance. Such sidewalks shall be of the material and width and upon the place and grade specified in the ordinance.

Source: S.L. 1905, ch. 184, § 1; R.C. 1905, § 2899; C.L. 1913, § 3905; S.L. 1921, ch. 136, § 1; 1925 Supp., § 3905; R.C. 1943, § 40-2902.

40-29-03. Notice to construct, rebuild, or repair sidewalks.

Except as otherwise provided in this chapter, if the governing body deems it necessary to construct, rebuild, or repair any sidewalk in the municipality, it shall notify each owner of record at the last address shown in the recorder or the county treasurer or occupant of any lot or parcel of land that would be benefited by the sidewalk to construct, rebuild, or repair the same at the owner’s own expense and subject to the approval of the street commissioner or city engineer, within the time designated in the notice. The notice must be directed in the manner hereinbefore provided to the owner of record or occupant and must set forth what work is to be done, the character of the same as specified in the ordinance, and the time within which the owner is required to do the work. The work must be done to the satisfaction of the street commissioner or city engineer. The notice may be general as to the owner of record or occupant but must be specific as to the description of the lot or parcel of ground to be benefited by the sidewalk that is to be built or repaired. The street commissioner or city engineer shall serve such notice by certified mail or delivering a copy thereof to the occupant or owner of record of each lot or parcel of occupied land described in the notice, or as to the occupant by leaving a copy thereof at the dwelling house upon such lot or parcel of land with some person over the age of fourteen years residing therein. If any lot or parcel of land is not occupied and service by mail is deemed impractical, the commissioner or city engineer may serve the notice by posting a copy thereof in a conspicuous place therein or immediately in front thereof. If such sidewalk is not repaired within the time fixed in such notice, the street commissioner or city engineer, as soon as practicable, shall repair the same and certify the cost thereof, with the person’s return of service of the notice, to the city auditor, and the cost of such repairs must be paid out of the sidewalk special fund.

Source: S.L. 1887, ch. 73, art. 15, § 20; R.C. 1895, § 2291; R.C. 1899, § 2291; S.L. 1905, ch. 62, § 1301/2; 1905, ch. 184, § 1; R.C. 1905, §§ 2765, 2899; C.L. 1913, §§ 3690, 3905; S.L. 1921, ch. 136, § 1; 1925 Supp., § 3905; R.C. 1943, § 40-2903; S.L. 1969, ch. 374, § 1; 1971, ch. 408, § 1; 1989, ch. 492, § 1; 2001, ch. 120, § 1.

40-29-04. Power of municipality upon failure of property owner to comply with notice.

If the sidewalk is not constructed, repaired, or rebuilt in the manner and within the time prescribed in the notice, the governing body shall order the work done by such person as it may have contracted with therefor, under the supervision of the city engineer or of the street commissioner in a city having no city engineer, at the expense of the lots or parcels of land benefiting from the sidewalk. The expense of constructing, repairing, or rebuilding the sidewalk shall include the expense of giving all notices required by the provisions of this chapter, of making assessments, and of any other nature incurred in doing such work.

Source: S.L. 1887, ch. 73, art. 15, § 21; R.C. 1895, § 2292; S.L. 1897, ch. 102, § 1; R.C. 1899, § 2292; S.L. 1905, ch. 62, § 131; 1905, ch. 184, § 1; R.C. 1905, §§ 2766, 2899; C.L. 1913, §§ 3691, 3905; S.L. 1921, ch. 136, § 1; 1925 Supp., § 3905; R.C. 1943, § 40-2904; S.L. 1967, ch. 323, § 175; 1983, ch. 462, § 1.

40-29-05. Assessment of expense.

The expense of constructing, repairing, or rebuilding sidewalks must be assessed against the lots or parcels of land benefited by the sidewalk by the city engineer, or by the street commissioner in cities having no city engineer, who shall return the assessment and file it in the office of the city auditor. The city auditor shall cause such assessment, together with a notice of the time when and place where the governing body will meet to consider the approval thereof, to be published in one issue of the official newspaper of the city at least ten days prior to the meeting of the governing body at which the approval of the assessment will be considered.

Source: S.L. 1887, ch. 73, art. 15, § 21; R.C. 1895, § 2292; S.L. 1897, ch. 102, § 1; R.C. 1899, § 2292; S.L. 1905, ch. 62, § 131; R.C. 1905, § 2766; C.L. 1913, § 3691; R.C. 1943, § 40-2905; S.L. 1967, ch. 323, § 176; 1989, ch. 492, § 2.

40-29-06. Assessment of expense in villages. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-29-07. Bids for sidewalks.

Bids for the construction of sidewalks in a city must be made in accordance with chapter 48-01.2.

Source: S.L. 1905, ch. 62, § 132; R.C. 1905, § 2767; S.L. 1911, ch. 68; C.L. 1913, § 3692; R.C. 1943, § 40-2907; S.L. 1955, ch. 270, § 1; 1957 Supp., § 40-2907; S.L. 1967, ch. 323, § 177; 1979, ch. 91, § 7; 1981, ch. 142, § 4; 1995, ch. 443, § 10; 2007, ch. 403, § 7.

Effective Date.

The 2007 amendment of this section by section 7 of chapter 403, S.L. 2007 became effective August 1, 2007.

40-29-08. Awarding contract for sidewalks. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-29-09. City auditor to deliver assessment rolls to county auditor — Extension — Collection.

The city auditor shall deliver to the county auditor a duplicate of all assessment rolls containing assessments made under the provisions of this chapter, and the county auditor shall extend the assessments in the proper column against the property assessed. Each assessment shall be collected and the payment thereof enforced as county and state taxes are collected and enforced. When collected, the assessment shall be paid over by the county treasurer to the city auditor in the same manner as other taxes.

Source: S.L. 1905, ch. 184, § 2; R.C. 1905, § 2900; C.L. 1913, § 3906; R.C. 1943, § 40-2909; S.L. 1955, ch. 270, § 3; 1957 Supp., § 40-2909; S.L. 1967, ch. 323, § 178.

40-29-10. Review of assessments — Assessment book.

The city auditor shall keep in the city auditor’s office a book called “sidewalk assessment book” and shall enter therein the cost certified by the street commissioner or the governing body as an assessment against the lots or parcels of land benefited by a sidewalk constructed, repaired, or rebuilt under the provisions of this chapter, and the name of the owners of such lots or parcels of land, if the same are known to the city auditor. The governing body shall review all assessments and hear all complaints against the same and approve the same as finally adjusted.

Source: S.L. 1905, ch. 62, § 134; R.C. 1905, § 2769; S.L. 1907, ch. 46, § 8; C.L. 1913, § 3694; R.C. 1943, § 40-2910; S.L. 1967, ch. 323, § 179; 1989, ch. 492, § 3.

40-29-11. Payment of assessments — Interest.

All assessments for sidewalks must be payable in equal annual amounts extending over a period not exceeding twenty years and must bear interest at an annual rate of not more than two percentage points above the average net annual interest rate on warrants for the total amount of the assessments remaining unpaid. Anyone may pay the sidewalk assessment in one single payment, and anyone who has paid one or more installments may pay the balance in one payment.

Source: S.L. 1905, ch. 62, § 160; R.C. 1905, § 2795; S.L. 1909, ch. 57, § 1; C.L. 1913, § 3720; R.C. 1943, § 40-2911; S.L. 1981, ch. 416, § 2; 2017, ch. 281, § 1, effective August 1, 2017.

40-29-12. Procedure for making limited repairs to sidewalks. [Repealed]

Repealed by S.L. 1969, ch. 374, § 2.

40-29-13. Sidewalks repaired or constructed in municipalities not to be paid for by general taxation — Exception.

Except as otherwise provided in this chapter, a municipality shall not be liable generally on any contract for the construction, rebuilding, or repairing of sidewalks and shall not be required to pay funds raised by general taxation upon any such contract.

Source: S.L. 1905, ch. 62, § 135; 1905, ch. 184, § 1; R.C. 1905, §§ 2770, 2899; S.L. 1913, ch. 82, § 1; C.L. 1913, §§ 3695, 3905; S.L. 1917, ch. 78, § 1; 1921, ch. 136, § 1; 1925 Supp., §§ 3695, 3905; R.C. 1943, § 40-2913; S.L. 1955, ch. 271, § 1; 1957 Supp., § 40-2913.

40-29-14. Sidewalk special fund — Warrants drawn upon — Levy.

All moneys received by a municipality from assessments for the construction, rebuilding, or repairing of sidewalks shall be kept in a separate fund designated as “sidewalk special fund”. Warrants shall be drawn on such fund for the payment of the cost of constructing, rebuilding, and repairing sidewalks. Except as otherwise provided in section 40-26-08, a municipality is not liable generally on any contracts for the cost of constructing, rebuilding, and repairing sidewalks and may not be required to pay funds raised by general taxation upon any such contract.

Source: S.L. 1905, ch. 62, § 135; R.C. 1905, § 2770; S.L. 1913, ch. 82, § 1; C.L. 1913, § 3695; S.L. 1917, ch. 78, § 1; 1925 Supp., § 3695; R.C. 1943, § 40-2914; S.L. 1955, ch. 271, § 2; 1957 Supp., § 40-2914; 2015, ch. 439, § 41, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 41 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-29-15. Warrants — Payable — Interest — Contents — Signed — Uses.

All sidewalk assessment warrants shall be payable as specified and in such amounts as in the judgment of the governing body will be provided by the taxes and assessments. The warrants shall bear interest at a rate or rates and be sold at a price resulting in an average net interest cost not to exceed twelve percent per annum if sold at private sale. There is no interest rate ceiling on warrants sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. The warrants must state on their face the purpose for which they were issued and from what fund they are payable and must be signed by the executive officer and countersigned by the city auditor under the seal of the municipality. The warrants may be used in making payment on contracts for making the improvements or may be sold for cash at not less than ninety-eight percent of the par value thereof and the proceeds credited to the special fund and used to pay for such improvements.

Source: S.L. 1905, ch. 62, § 135; R.C. 1905, § 2770; S.L. 1913, ch. 82, § 1; C.L. 1913, § 3695; S.L. 1917, ch. 78, § 1; 1925 Supp., § 3695; R.C. 1943, § 40-2915; S.L. 1967, ch. 323, § 181; 1971, ch. 249, § 15; 1973, ch. 331, § 1; 1981, ch. 269, § 13.

40-29-16. City auditor to pay warrants from special fund.

The city auditor shall pay sidewalk assessment warrants and interest thereon at the time or times and in the manner designated by the governing body out of the sidewalk special fund.

Source: S.L. 1905, ch. 62, § 135; R.C. 1905, § 2770; S.L. 1913, ch. 82, § 1; C.L. 1913, § 3695; S.L. 1917, ch. 78, § 1; 1925 Supp., § 3695; R.C. 1943, § 40-2916; S.L. 1985, ch. 463, § 1.

40-29-17. Property owners petition for drainage and construction or repair of streets and sidewalks — Requirements.

If two-thirds of the resident owners in number or in value of the real estate bounding both sides of any street, not less than one block in area, shall petition the governing body of a municipality to have such street ditched for the purpose of draining the same or any property abutting thereon, or for the construction or repairing of a sidewalk thereon, or if two-thirds of the owners of real estate in number or in value on one side of such street shall desire a sidewalk on that side, the governing body shall levy and cause to be collected by tax upon the real estate on such street or part of street, such sum of money as is necessary for the improvement of the street or sidewalk or the building of the sidewalk in front of each of the several lots or at the side of any corner lot or lots or real estate. No real estate shall be taxed as provided in this section for sidewalks built at a greater distance from the front of the real estate than one-half of the distance to the opposite side of the street.

Source: S.L. 1883, ch. 107, § 1; R.C. 1895, § 2392; R.C. 1899, § 2392; R.C. 1905, § 2891; C.L. 1913, § 3896; S.L. 1919, ch. 208, § 1; 1925 Supp., § 3896; R.C. 1943, § 40-2917; S.L. 1967, ch. 323, § 182.

40-29-18. Snow and ice removal from sidewalks — Assessment — Street commissioner to make and file assessment list.

If snow and ice are not removed from sidewalks within the time and in the manner provided by the ordinances of the municipality, the snow and ice may be removed by or under the direction of the street commissioner and the necessary expense thereof shall be chargeable against the abutting property. Annually, on or before May first, the street commissioner shall make and file in the office of the city auditor a list showing separately the amount chargeable and assessed against each lot and tract and stating the name of the owner of each such lot or tract so far as known to the street commissioner.

Source: S.L. 1907, ch. 46, § 2; 1913, ch. 82, § 2; C.L. 1913, § 3696; 1925 Supp., § 3696; R.C. 1943, § 40-2918; S.L. 1967, ch. 323, § 183.

Cross-References.

Liability of municipality limited, see § 40-42-05.

Powers of municipality, see § 40-05-01.

Notes to Decisions

Duty of Municipality.

It is the primary duty of a municipality to keep the sidewalks free of ice and snow and where the municipality has adopted an ordinance imposing this duty upon the lot owners and making failure to do so an offense, it is not repudiating its responsibility, but is recognizing it. Jackson v. Grand Forks, 24 N.D. 601, 140 N.W. 718, 1913 N.D. LEXIS 28 (N.D. 1913); Clark v. Stoudt, 73 N.D. 165, 12 N.W.2d 708, 1944 N.D. LEXIS 51 (N.D. 1944).

Tort Liability of Property Owner to Pedestrian.

This section does not impose upon a property owner a statutory duty owed to a pedestrian to remove the natural accumulation of snow and ice from the sidewalk abutting his property, and does not impose liability for injuries suffered by pedestrians from falls due to such natural accumulations. Lahren v. United States, 438 F. Supp. 919, 1977 U.S. Dist. LEXIS 13295 (D.N.D. 1977).

40-29-19. Notice of meeting of governing body to confirm snow and ice removal report and assessment.

The city auditor shall give notice of the hearing and confirmation of the report of snow and ice removal and of the assessment therefor at the regular June meeting of the governing body. Such notice shall notify all persons objecting to the report and assessment to appear and present their objections. The notice shall be published once each week for two consecutive weeks in the official municipal newspaper and the last publication shall not be less than eight days before the date set for the hearing.

Source: S.L. 1907, ch. 46, § 2; 1913, ch. 82, § 2; C.L. 1913, § 3696; 1925 Supp., § 3696; R.C. 1943, § 40-2919; S.L. 1967, ch. 323, § 184.

Cross-References.

Official newspaper of municipality, see § 40-01-09.

40-29-20. Hearing on snow and ice removal assessment — Confirmation — Certificate attached to assessment list.

At the meeting of the governing body in June or at such later meeting as the hearing and confirmation of such assessment may be adjourned to, the governing body shall consider and hear any objection to the snow and ice removal assessment, or to any part thereof, and after revising or correcting the assessment, if revision or correction is necessary, it shall approve and confirm the same. The city auditor shall attach to the assessment list the city auditor’s certificate that the list is correct as confirmed by the governing body and shall file the same in the city auditor’s office, and shall certify the assessment in the manner provided in section 40-24-11.

Source: S.L. 1907, ch. 46, § 2; 1913, ch. 82, § 2; C.L. 1913, § 3696; 1925 Supp., § 3696; R.C. 1943, § 40-2920; S.L. 1967, ch. 323, § 185.

40-29-21. Priority.

From the time any assessment list provided for in this chapter is approved by the governing body, the assessment, with interest and penalties thereon, shall be and remain a permanent lien upon the property upon which the assessment is levied until the assessment is paid in full, and it shall have precedence over all other liens except general taxes. Such lien shall not be divested by any judicial sale, and no mistake in the description of the property assessed nor in the name of the owner thereof shall defeat such lien if the property assessed can be identified by the description in the assessment list.

Source: S.L. 1907, ch. 46, § 2; 1913, ch. 82, § 2; C.L. 1913, § 3696; 1925 Supp., § 3696; R.C. 1943, § 40-2921.

CHAPTER 40-30 Special Streetlighting in Cities

40-30-01. Special streetlighting system authorized.

Any city may install upon any of its streets any special system or systems of streetlighting and defray the expenses and cost thereof as provided in this chapter.

Source: S.L. 1909, ch. 56, § 1; C.L. 1913, § 3744; R.C. 1943, § 40-3001.

Cross-References.

Municipally owned electric light and power systems, see ch. 40-33.

Notes to Decisions

Unity of System.

Where a lighting system is planned and prepared as a single project, the fact that certain items or parts used in its construction may be of different material does not destroy the singleness and unity of the system. Rybnicek v. Mandan, 93 N.W.2d 650, 1958 N.D. LEXIS 104, 1958 N.D. LEXIS 105 (N.D. 1958).

40-30-02. Procedure to install special streetlighting system.

Whenever the governing body of any city shall deem it necessary to install, construct, alter, or extend, upon any of the streets of the city, a special system or special systems of streetlighting, such governing body may direct the city engineer or such other person as shall be designated, by motion or resolution, to prepare plans and specifications for such work and to make an estimate of the probable cost. Such plans, specifications, and estimates shall be approved by resolution of the governing body and filed in the office of the city auditor. The city auditor thereupon shall publish in the official newspaper of the city once each week for three successive weeks a notice stating that such plans, specifications, and estimates have been approved and filed in the city auditor’s office and are open to public inspection. If the owners of a majority of the property abutting on any street or streets where such lighting system is to be installed shall not protest against the lighting system or improvement within ten days after the last publication of such notice, the majority of such owners shall be deemed to have consented thereto, and the city may proceed to provide for the construction of the improvement and to assess the cost thereof, or such part thereof as the governing body shall deem proper, against the abutting property in the manner and with the notice and according to the forms and procedure provided in this title for the construction and assessment of street paving.

Source: S.L. 1909, ch. 56, § 2; C.L. 1913, § 3745; S.L. 1915, ch. 69, § 1; 1925 Supp., § 3745; R.C. 1943, § 40-3002.

Cross-References.

Improvements by special assessment, see ch. 40-22 et seq.

Notes to Decisions

Property Subject to Assessment.

The amount of property included and liable to special assessment is the square footage computed on the width and depth of the lots and parcels abutting on the lighting system. Rybnicek v. Mandan, 93 N.W.2d 650, 1958 N.D. LEXIS 104, 1958 N.D. LEXIS 105 (N.D. 1958).

Protest by Property Owners.

Protest by owners of a majority of the property embraced in the system liable to assessment is necessary to bar installation and protest by owners of a majority of the property abutting one street could not bar installation of an entire system. Rybnicek v. Mandan, 93 N.W.2d 650, 1958 N.D. LEXIS 104, 1958 N.D. LEXIS 105 (N.D. 1958).

Publication of Notices Part of Expense.

The cost of publication of notices in connection with the establishment of a special street lighting system or of special assessments therein to be levied should be considered a part of the cost of construction. Mandan News v. Henke, 48 N.D. 402, 184 N.W. 991, 1921 N.D. LEXIS 55 (N.D. 1921).

40-30-03. Assessment for cost of streetlighting.

In conducting proceedings under this chapter, it shall not be necessary to establish any separate lighting or improvement districts, and in assessing the benefits, no assessment shall be made against any property other than that immediately contiguous to the streets or avenues where such improvement is made.

Source: S.L. 1909, ch. 56, § 3; C.L. 1913, § 3746; R.C. 1943, § 40-3003.

CHAPTER 40-31 Construction and Repair of Curbing and Gutters in Cities

40-31-01. Governing body to prescribe plans and specifications for curbing by ordinance or resolution.

The governing body of a city, by resolution or ordinance may:

  1. Prescribe the plans and specifications for the curbing to be used in the city;
  2. Establish the widths between the same in different locations; and
  3. Determine and prescribe the kind and quality of material of which and the manner in which the curbing shall be constructed, taking into consideration the business and the amount of travel in the vicinity of each curb.

The resolution or ordinance shall be specific, and all contracts for the construction of curbing shall be let with reference thereto.

Source: S.L. 1917, ch. 72, § 1; 1925 Supp., § 3696b1; R.C. 1943, § 40-3101.

Notes to Decisions

Gutter Improvement.

An ordinance which specifies curbing known as the curbing and gutter type is not invalid by reason of the fact that the type of curbing contemplated includes an improvement affecting the gutters. Deuchscher v. Jamestown, 61 N.D. 314, 237 N.W. 814, 1931 N.D. LEXIS 277 (N.D. 1931).

40-31-01.1. Ramped curbing for wheelchairs. [Repealed]

Repealed by S.L. 1993, ch. 261, § 6.

40-31-02. City to build curbing — Assessment of expense — Notice of assessment — Approval by governing body.

The curbing in the city shall be built, repaired, or rebuilt in the manner and within the time prescribed by the governing body, which shall order the work to be done by such person as it may have contracted with therefor, under the direction of the city engineer, or street commissioner, if the city has no city engineer, at the expense of the lots or parcels of land benefiting from the curbing. Such expense, including the expense of all notices in connection with such work, the assessment therefor, and any other expense incurred for such work, shall be assessed by the city engineer, or by the street commissioner if the city has no city engineer, against the lot or parcel of land properly chargeable therewith. Such assessment shall be returned by the engineer or commissioner and filed in the office of the city auditor, and the city auditor shall cause the assessment, together with a notice of the time when and place where the governing body will meet to consider the approval of the same, to be published once in the official newspaper of the city at least ten days prior to the meeting of the governing body to consider the approval of the assessment.

Source: S.L. 1917, ch. 72, § 2; 1925 Supp., § 3696b2; R.C. 1943, § 40-3102; S.L. 1983, ch. 462, § 2.

Cross-References.

Official newspaper of city, see § 40-01-09.

40-31-03. Requirements as to certified or cashier’s check and bidder’s bond accompanying bids. [Repealed]

Repealed by S.L. 1995, ch. 443, § 29.

40-31-04. Letting contracts for curbing.

At least once every year that the city plans to construct or repair curbing or gutters, the city auditor shall solicit bids in accordance with chapter 48-01.2.

Source: S.L. 1917, ch. 72, § 3; 1925 Supp., § 3696b3; R.C. 1943, § 40-3104; S.L. 1957, ch. 284, § 1; 1957 Supp., § 40-3104; S.L. 1995, ch. 443, § 11; 2007, ch. 403, § 8.

Effective Date.

The 2007 amendment of this section by section 8 of chapter 403, S.L. 2007 became effective August 1, 2007.

40-31-05. Procedure for making limited repairs to curbing.

Whenever in the judgment of the street commissioner the necessary repairs on curbing will not exceed in cost the sum of ten dollars for each twenty-five feet [7.62 meters] in front of land belonging to the same owner, the commissioner shall notify the city auditor thereof, and the city auditor forthwith shall prepare a written notice, which may be general as to the owners of the lots or parcels of land but which shall describe specifically the lots or parcels of land adjacent to which the curbing is ordered repaired, requiring such owners to repair such curbing to the satisfaction of the street commissioner within a time to be fixed in such notice. The street commissioner shall serve such notice by delivering a copy thereof to the occupant or owner of each parcel of occupied land or by leaving a copy thereof at the dwelling house upon such lot or parcel with some person over the age of fourteen years residing therein. If any lot or parcel of land is not occupied, the commissioner shall serve the notice by posting a copy thereof in a conspicuous place thereon or immediately in front thereof. If such curbing is not repaired within the time fixed in the notice, the street commissioner, as soon as practicable, shall repair the same and certify the cost thereof, with the street commissioner’s return of service of the notice, to the city auditor, and the cost of such repairs shall be paid out of the curbing special fund.

Source: S.L. 1917, ch. 72, § 4; 1925 Supp., § 3696b4; R.C. 1943, § 40-3105.

40-31-06. Assessment book for curbing repairs — Review of assessments — Extension — Collection.

The city auditor shall keep in the city auditor’s office a curbing repair assessment book and shall enter therein curbing costs certified by the street commissioner as an assessment against the lots or parcels of land fronting on or adjoining such curbing, and the name of the owner of such lots or parcels of land if known to the city auditor. At a regular meeting, the governing body shall review all assessments and hear all complaints against the same and approve the same as finally adjusted. The city auditor shall deliver to the county auditor a duplicate of all assessment rolls containing assessments made under the provisions of this chapter, and the county auditor shall extend the assessments in the proper column against the property assessed. Each assessment shall be collected and the payment thereof enforced as county and state taxes are collected and enforced. When collected, the assessment shall be paid over by the county treasurer to the city auditor in the same manner as other taxes.

Source: S.L. 1917, ch. 72, § 5; 1925 Supp., § 3696b5; R.C. 1943, § 40-3106; S.L. 1957, ch. 284, § 2; 1957 Supp., § 40-3106.

40-31-07. Curbing not to be paid for by general taxation — Exception.

Except as otherwise provided in this chapter, a city shall not be liable generally on any contract for the building or repairing of curbing and shall not be required to pay funds raised by general taxation upon any such contract.

Source: S.L. 1917, ch. 72, § 6; 1925 Supp., § 3696b6; R.C. 1943, § 40-3107; S.L. 1955, ch. 272, § 1; 1957 Supp., § 40-3107.

40-31-08. Curbing special fund — Warrants drawn upon — Levy.

All moneys received by a city from assessments for building or repairing curbing shall be kept in a separate fund designated as the curbing special fund. Warrants shall be drawn upon such fund for the payment of the cost of building and repairing curbing in the municipality. Except as otherwise provided in section 40-26-08, a municipality is not liable generally on any contracts for the cost of building and repairing sidewalks and may not be required to pay funds raised by general taxation upon any such contract.

Source: S.L. 1917, ch. 72, § 6; 1925 Supp., § 3696b6; R.C. 1943, § 40-3108; S.L. 1955, ch. 272, § 2; 1957 Supp., § 40-3108; 2015, ch. 439, § 42, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 42 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-31-09. Warrants — Payable — Interest coupons — Contents — Uses.

All curbing assessment warrants shall be payable as specified and in such amounts as in the judgment of the governing body will be provided by the taxes and assessments. The warrants shall bear interest at a rate or rates and be sold at a price resulting in an average net interest cost of not more than twelve percent per annum on those issues sold at private sale. However, there is no interest rate ceiling on warrant issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. The warrants may have coupons attached representing each year’s interest. The warrants shall state upon their face the purpose for which they were issued and the fund from which they are payable and shall be signed by the executive officer of the city and countersigned by the city auditor under the seal of the city. The warrants may be used in making payments on contracts for making the improvements or may be sold for cash at not less than ninety-eight percent of the par value thereof and the proceeds credited to the special fund and used to pay for such improvements.

Source: S.L. 1917, ch. 72, § 6; 1925 Supp., § 3696b6; R.C. 1943, § 40-3109; S.L. 1971, ch. 249, § 16; 1973, ch. 332, § 1; 1981, ch. 269, § 14.

40-31-10. City auditor to pay warrants from special fund.

The city auditor shall pay curbing assessment warrants and interest thereon at the time or times and in the manner designated by the governing body out of the curbing special fund.

Source: S.L. 1917, ch. 72, § 6; 1925 Supp., § 3696b6; R.C. 1943, § 40-3110; S.L. 1985, ch. 463, § 2.

CHAPTER 40-32 Boulevards in Cities and Park Districts

40-32-01. Construction and maintenance of boulevards — Notice to owner — Contents of notice.

The governing body of any city, whenever it shall deem it necessary to construct boulevards, or to plant trees or sow grass seed thereon, or to trim trees or cut grass growing thereon, or to water or otherwise maintain or preserve any such improvement, shall give written notice to each owner and occupant of any lot or parcel of land adjoining the improvement deemed necessary requiring the person to make the improvement designated at the person’s own expense and subject to the approval of the street commissioner. The notice may be general as to the owners of the lots or parcels of land, but it shall be specific as to the description of the lands. The notice shall specify the improvement required to be made and the time within which the same shall be commenced or completed.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3201.

40-32-02. Service of notice to construct or repair.

The street commissioner shall serve the notice provided in section 40-32-01 or cause the same to be served by leaving a copy thereof at the dwelling house on such lot or parcel of land with some person over the age of fourteen years residing therein, or, if the lot or parcel of land is unoccupied, by posting a copy of the notice in a conspicuous place on the land or immediately in front thereof.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3202.

40-32-03. Objections to improvements — Considering validity.

Within ten days after the service of the notice, any property owner may file written objections to the making of the improvement described therein. At the next meeting following the filing of the objections, the governing body shall consider the validity of the objections and if a majority shall deem the objections not well taken, the improvements shall be made.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3203.

40-32-04. Improvement — When made — Expenses.

If the improvement is not objected to or is not completed or commenced, as the case may be, within the time prescribed in the notice, or if the improvement specified in the notice consists of the maintenance of a boulevard or some improvement thereon, the city, in the event that the owner does not inform the city auditor in writing, within ten days after the service of the notice, that the improvement will be made, shall make the improvement or shall order the same to be made by such person as the city may have contracted with, under the direction of the street commissioner, at the expense of the lot or parcel of land adjoining the improvement. The expense of the improvement shall include the expense of giving all notices in connection with the work, of making assessments, and of any other nature incurred in doing such work.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3204.

40-32-05. Limitation on making improvement.

An improvement provided for in this chapter may be made or maintained only in a block of the city in which the same improvement has been or is being made or maintained by the owners of two-thirds of the entire frontage in the block on the boulevard affected.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3205.

40-32-06. Assessment of cost of improvement.

The expense of the improvement shall be assessed by the street commissioner against the lots or parcels of land properly chargeable therewith, and such assessment shall be returned by the street commissioner and filed in the city auditor’s office. The city auditor shall cause such assessment, together with a notice of the time when and place where the governing body will meet to consider the approval thereof, to be published in one issue of the official newspaper of the city at least ten days prior to the meeting of the governing body at which the approval of the assessment will be considered.

Source: S.L. 1931, ch. 192, § 1; R.C. 1943, § 40-3206.

40-32-07. Letting contracts for improvements — Special or general contracts — Regulations governing.

The governing body may let a contract for the making of any or all improvements to be made within the city under this chapter in each year, or, if it is deemed advisable, it may let a contract for the making of each specific improvement as the same may be determined upon. Whether the contract to be let is general or special, it shall be let in the manner prescribed in chapter 40-29 for the letting of contracts for sidewalks in cities insofar as the provisions of such chapter are applicable.

Source: S.L. 1931, ch. 192, § 2; R.C. 1943, § 40-3207.

40-32-08. Boulevard assessment book — Entries — Review of assessments.

The city auditor shall keep in the city auditor’s office a book called “boulevard assessment book” and shall enter therein any assessment certified by the street commissioner as an assessment against the lots or parcels of land adjoining the improvement made under the provisions of this chapter and the names of the owners of such lots or parcels of land if the same are known to the city auditor. At a regular meeting in October of each year, the governing body shall review all assessments and hear all complaints against the same and approve the assessments as finally adjusted.

Source: S.L. 1931, ch. 192, § 3; R.C. 1943, § 40-3208.

40-32-09. Boulevard assessment fund — Warrants drawn — Regulations governing.

All moneys collected from assessments for making any of the improvements described in this chapter shall be kept in a fund called “boulevard assessment fund”. Warrants shall be drawn on such fund for the payment of the cost of making any such improvement or of maintaining the same. The city shall not be liable on any contracts for the making of any such improvements in any sum whatsoever to be paid by moneys raised by general taxation. The provisions of the law relating to the form of warrants, the use thereof, the rate of interest thereon, and the payment thereof, prescribed for warrants drawn on the sidewalk special fund shall be applicable to the warrants authorized in this section.

Source: S.L. 1931, ch. 192, § 4; R.C. 1943, § 40-3209.

Cross-References.

Sidewalk special fund, see § 40-29-14.

40-32-10. Park commissioners may exercise same powers as governing body.

The board of park commissioners of any city organized as a park district may exercise the powers defined in this chapter for the making or maintenance of any improvement upon any boulevards coming within its jurisdiction.

Source: S.L. 1931, ch. 192, § 5; R.C. 1943, § 40-3210.

Cross-References.

Park districts, see ch. 40-49.

40-32-11. Provisions not exclusive.

The provisions of this chapter are supplementary to the provisions of the laws of this state authorizing municipalities to make the improvements enumerated in this chapter by the creation of special improvement districts.

Source: S.L. 1931, ch. 192, § 6; R.C. 1943, § 40-3211.

CHAPTER 40-33 Municipal Utilities

40-33-01. Electric light, telephone, natural and artificial gas plants, pipelines and distribution systems, and power plants — Municipalities may purchase, erect, construct, maintain, sell, or lease.

Any municipality may purchase, erect, construct, operate, maintain, enlarge, improve and extend, or lease from any person or sell or lease to any person:

  1. Any electric light and power plant, site, buildings, and equipment thereof.
  2. Any electric distribution system and equipment thereof.
  3. Any electric transmission line and equipment thereof.
  4. Any telephone plant, equipment, and distribution system thereof.
  5. Any waterworks, mains, and water distribution system and any equipment or appliances connected therewith and any property related thereto, notwithstanding any other provision of law.
  6. Any heating system, gas or otherwise, and the buildings and equipment necessary to furnish heat to the public buildings of the municipality and to the inhabitants of the municipality.
  7. Any natural or artificial gas pipeline transmission or distribution system or plants.

For purposes of subsection 5, the term “lease” includes any lease, sublease, purchase agreement, lease-purchase agreement, installment purchase agreement, leaseback agreement, or other contract, agreement, instrument, or arrangement pursuant to which any rights, interests, or other property are transferred to, by, or from any party to, by, or from one or more parties, and any related documents entered or to be entered, including any operating agreement, service agreement, indemnity agreement, participation agreement, loan agreement, or payment undertaking agreement. A lease obligation of a municipality under subsection 5 may not exceed a term of ninety-nine years. A lease obligation of a municipality under subsection 5 does not constitute an indebtedness of the municipality or a pledge of the full faith and credit or unlimited taxing resources of the municipality. Notwithstanding any other provision of law, a municipality may solicit and accept one or more proposals for a lease transaction, including the arrangement thereof, under subsection 5. The municipality, by resolution of its governing body upon a majority vote of the members of the governing body, may accept a proposal that it determines to be in the public interest. A lease under subsection 5, and any related documents entered or to be entered, may be authorized by resolution of the governing body of the municipality.

Source: S.L. 1923, ch. 255, § 1; C.L. 1913, 1925 Supp., § 3992b1; S.L. 1927, ch. 197, § 1; 1929, ch. 172, § 1; 1935, ch. 200, § 1; R.C. 1943, § 40-3301; S.L. 1955, ch. 259, § 1; 1957 Supp., § 40-3301; S.L. 1993, ch. 54, § 106; 2003, ch. 342, § 5.

Cross-References.

Bond issues upon revenue-producing utilities, authority, see N.D. Const., Art. X, § 15.

Validation of acts of municipal officers in purchasing, erecting, operating, maintaining electric plant, system, or line, see § 1-07-08.

Collateral References.

Granting or taking of lease of property by municipality as within authorization of purchase or acquisition thereof, 11 A.L.R.2d 168.

Right to compel municipality to extend its water system, 48 A.L.R.2d 1222.

Power of municipality to sell, lease, or mortgage public utility plant or interest therein, 61 A.L.R.2d 595.

Liability of water supplier for damages resulting from furnishing impure water, 54 A.L.R.3d 936.

40-33-02. Acquiring, erecting, or improving plant, system, or line without election prohibited — Exceptions.

No municipal officers may purchase, erect, substantially enlarge, improve, or extend an existing plant, or lease from others any plant, system, or line provided for in section 40-33-01, unless the proposition has been submitted by a resolution of the governing body to the qualified electors of the city at a biennial or special election called, held, and conducted upon the notice and in the manner specified by this title for the election of the governing body of the city, and has been approved by a majority of the electors voting thereon. If the cost of any enlargement, improvement, or extension will be paid out of the earnings of the plant and the cost does not exceed the sum of five thousand dollars, or if eighty percent or more of the cost of any waterworks, mains, water system, and equipment or appliances therefor is to be paid by special assessments or by the earnings of the plant or by both, the governing body is not required to submit the proposition to the electors of the city. If the improvement and facilities are to provide for a greater and more adequate water supply to meet the needs of the city for domestic use, fire protection, or for sanitation and sewage disposal, regardless of cost the governing body thereof may by resolution provide for the needed improvement and facilities in cooperation with the state or federal government, or any agency thereof, without an election if funds for such cooperation or for defraying the entire cost thereof are available in the municipal utilities fund as defined by section 40-33-10. If the lease by the city of any plant, system, or line provided for in subsection 5 of section 40-33-01 is from the state, or any agency or institution of the state, the governing body is not required to submit the proposition to the electors of the city.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 2; 1929, ch. 172, § 2; R.C. 1943, § 40-3302; S.L. 1947, ch. 280, § 1; 1957 Supp., § 40-3302; S.L. 1991, ch. 442, § 17; 2003, ch. 342, § 6.

Notes to Decisions

Submission of Question on Purchase of Utility to Voters.

Submission to the electors of a proposition whether the city should “purchase or erect” a public utility submits a single question. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930); Thomas v. McHugh, 65 N.D. 149, 256 N.W. 763, 1934 N.D. LEXIS 182 (N.D. 1934).

Taxpayer’s Right to Bring Action.

A citizen and taxpayer of a city has a right to bring an action to restrain city from carrying out contract for the installation of a utility. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-33-03. Sale or lease of plant, system, or line — Offer or written proposition — Election — Proceeds.

No municipality shall sell any municipal plant, system, or line, nor lease the same, or any substantial part thereof, or interest therein, to any person, firm, corporation, or limited liability company unless the person, firm, corporation, or limited liability company shall have filed in the office of the auditor of the municipality a complete written offer or proposition, nor unless a majority of the qualified electors of the municipality shall have voted in favor of accepting the offer or proposition at an election called, held, and conducted as specified in section 40-33-02. A copy of the offer or proposition shall be published with the notice of the election. The proceeds of any sale or lease made according to this section shall be applied toward the payment of the existing indebtedness of the municipality incurred for the purpose of purchasing, erecting, operating, or enlarging, improving, or extending such plant, system, or line. The purchaser or lessee, however, shall not be required to see that the consideration of the purchase or lease is applied correctly as provided in this section, but the purchaser or lessee shall be protected fully in making the payment or payments by the receipt of the city auditor. Nothing contained in this section shall prevent the governing body from selling or disposing of any machinery, material, or other property belonging to any such utility which may have been inadequate or insufficient for the purposes for which it was intended to be used. This section does not apply to a lease by a municipality of any plant, system, or line to the state or any agency or institution of the state pursuant to subsection 5 of section 40-33-01.

Source: S.L. 1893, ch. 134, § 1; R.C. 1895, § 2461; R.C. 1899, § 2461; R.C. 1905, § 2965; C.L. 1913, § 3992; S.L. 1923, ch. 255, § 2; 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 3; 1929, ch. 172, § 3; R.C. 1943, § 40-3303; S.L. 1967, ch. 323, § 186; 1993, ch. 54, § 106; 2003, ch. 342, § 7.

Notes to Decisions

Appraisal Not Required.

Procedure for the sale of an electric utility by a city does not require any appraisal of the utility. Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953).

Contract Requirement.

A contract for the sale of electric utility was not unreasonable or void for uncertainty where the purchaser conceded that possible uncertainty could be resolved in favor of the city and where the provisions assured performance by the purchaser and protection of the city. Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953).

Resolution of Acceptance of Contract.

Where an offer to purchase an electric utility was submitted to the electors and approved, a further resolution by the governing body accepting the proposal was mere surplusage and the mayor’s veto of the resolution was ineffective. Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953).

Submission of Question of Sale.

The number and diversity of the commitments to be performed by the respective parties in order to execute the contract for sale of electric utility did not have the effect of converting such a proposal into a double or multiple proposition as long as the commitments were interdependent; the complete offer could be accepted or rejected in its entirety and submission of separate questions was not required. Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953).

40-33-04. Manner of payment of purchase, erection, improvement, or leasing of plant, system, or line.

Any municipality may pay the cost of purchasing, erecting, enlarging, improving, extending, or leasing any municipal plant, system, line, or any part thereof:

  1. Out of the earnings of the plant, system, or line;
  2. By issuing special assessment warrants as provided in section 40-33-05;
  3. By issuing bonds of the municipality as provided in section 40-33-07;
  4. Partly by such special assessment warrants and partly by such bonds; or
  5. Partly out of the earnings of the plant, system, or line, and partly by such special assessments or bonds or special assessments and bonds.

A municipality may pay the cost of leasing any municipal plant, system, line, or any part thereof from the state, or any agency or institution of the state under subsection 5 of section 40-33-01 solely from revenues to be derived by the municipality from the ownership, sale, lease, disposition, and operation of the waterworks, mains, and water distribution system; the funds or any other amounts invested by the municipality pursuant to section 21-06-07, or invested on the municipality’s behalf by the state, or any agency or institution of the state, in conformity with policies of the industrial commission, including investment in a guaranteed investment contract and any earnings thereon, to the extent pledged therefor; and funds, if any, appropriated annually by the governing body of the municipality or received from federal or state sources.

When such cost, or any part thereof, is to be paid out of the earnings, the cost or the part thereof payable out of the earnings shall not become a general obligation of the municipality payable out of the money raised through taxation but shall be a special obligation payable solely and exclusively out of the earnings derived from the operation of the plant, system, or line.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 4; 1929, ch. 172, § 4; R.C. 1943, § 40-3304; S.L. 2003, ch. 342, § 8.

Notes to Decisions

Authority of City to Provide for Payment of Costs.

The state constitutional provision (article X, section 15) authorizing cities to issue bonds upon revenue-producing utilities for purchasing or acquiring the same and the statutory provisions enumerating means of payment for acquisition of utilities do not limit the power of cities to purchase utilities to the means prescribed and do not deny cities the right to purchase or erect utilities where this can be done without incurring any debt or obligation and a city does not create an indebtedness where the contract to purchase a utility provided that the obligation was not a general obligation of the city, but a special obligation, payable only from the net revenues of the city’s plant. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

Submission of Bond Issue Question to Voters.

Question in notice of election and in ballots as follows: “Shall the city . . . issue its bonds in the amount not to exceed $16,000 . . .” conformed to the requirements of the statute and was sufficient. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

Submission of Purchase of Utility Question to Voters.

Submission to the electors of a proposition whether the city should “purchase or erect” a public utility submits a single question. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930); Thomas v. McHugh, 65 N.D. 149, 256 N.W. 763, 1934 N.D. LEXIS 182 (N.D. 1934).

40-33-05. Payment of cost of plant, system, or line by special assessment warrants — Payment of assessments — Interest.

If the governing body of the municipality deems it advisable to pay the whole or any part of the cost of a municipal utility by special assessment warrants, it shall create a special assessment district by ordinance. The district shall include, as nearly as may be determined, all of the property in the municipality which will be benefited by the improvement, and may include the entire municipality or a portion thereof. The governing body thereafter shall adopt a resolution of necessity and hold a hearing thereon, estimate the amount of the cost of the improvement, let a contract or contracts therefor, create a fund for the district, issue and sell the warrants of the municipality drawn on the fund, complete the work of the improvement, and assess the property benefited thereby upon notice and in the form and manner specified by the provisions of chapters 40-22 through 40-26 insofar as such provisions are applicable to an improvement being made under this chapter. The special assessments levied shall be payable in equal annual installments extending over a period of not more than twenty years and shall bear interest at an annual rate of not more than one and one-half percentage points above the average net annual interest rate on any warrants for the payment of which they are pledged on the total amount of the assessments remaining unpaid.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 5; 1929, ch. 172, § 5; R.C. 1943, § 40-3305; S.L. 1981, ch. 269, § 15; 1981, ch. 416, § 3.

40-33-06. Payment of cost of improvement by general taxation.

Within the debt limit provision of the Constitution of North Dakota, the municipality may pay, at the option of the governing body, any portion of the cost of the improvement by general taxation upon all the taxable property in the municipality. The tax shall be levied at the time of making the improvement and shall be spread over such years and in such amounts as will meet the municipality’s share of the cost represented by the principal of the warrants issued against the fund and the interest thereon. The tax, when collected, shall be paid into the fund of the district and shall be used solely for the payment of the principal and interest of the warrants issued against the district. The ordinance levying the tax shall be irrepealable so long as any warrants are outstanding against the fund.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 5; 1929, ch. 172, § 5; R.C. 1943, § 40-3306.

40-33-07. Issuance of bonds — Election required.

No municipality shall issue its bonds as authorized by section 40-33-04 until the question of issuing the bonds shall have been approved by a majority of the electors of the municipality voting upon such question at an election called, held, and conducted as specified in section 40-33-02. The notice of the election shall specify the maximum amount, maximum interest rate, purpose, and maturity of the bonds. The bonds shall be sold in the manner provided by chapter 21-03. At or before the issuance of the bonds, the municipality, by ordinance, shall levy a direct, annual, and irrepealable tax upon all the taxable property in the municipality in the years and in amounts sufficient to pay the principal and interest of the bonds when due.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 6; 1929, ch. 172, § 6; R.C. 1943, § 40-3307.

Notes to Decisions

Authority of City to Provide for Payment of Costs.

The state constitutional provision (article X, section 15) authorizing cities to issue bonds upon revenue-producing utilities for purchasing or acquiring the same and the statutory provision enumerating means of payment for acquisition of utilities do not limit the power of cities to purchase utilities to the means prescribed and do not deny cities the right to purchase or erect utilities where this can be done without incurring any debt or obligation and a city does not create an indebtedness where the contract to purchase a utility provided that the obligation was not a general obligation of the city, but a special obligation, payable only from the net revenues of the city’s plant. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

Submission of Bond Issue Question to Voters.

Question in notice of election and in ballots as follows: “Shall the city . . . issue its bonds in the amount not to exceed $16,000 . . .” conformed to the requirements of the statute and was sufficient. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

Taxpayer’s Right to Bring Action.

A citizen and taxpayer of a city has a right to bring an action to restrain city from carrying out contract for the installation of a utility. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-33-08. Questions and propositions may be voted upon at same election and may be contained on one ballot.

Any or all of the propositions and questions to be voted upon as specified in sections 40-33-02 and 40-33-07 may be submitted at one and the same election and upon one ballot, but the ballot shall state each of the propositions separately.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 7; 1929, ch. 172, § 7; R.C. 1943, § 40-3308.

Notes to Decisions

Bond Issue.

Question in notice of election and in ballots as follows: “Shall the city … issue its bonds in the amount not to exceed $16,000 …” conformed to the requirements of the statute and was sufficient. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

Purchase of Utility.

Submission to the electors of a proposition whether the city should “purchase or erect” a public utility submits a single question. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930); Thomas v. McHugh, 65 N.D. 149, 256 N.W. 763, 1934 N.D. LEXIS 182 (N.D. 1934).

40-33-09. Extension of municipal lighting, heating, or power system, or gas works by special assessment method.

An extension to an existing municipal lighting, heating, or power system or gas works shall be considered an improvement within the provisions of this chapter.

Source: S.L. 1909, ch. 56, § 2; C.L. 1913, § 3745; S.L. 1915, ch. 69, § 1; 1919, ch. 82, § 1; 1923, ch. 256, § 1; 1925 Supp., §§ 3745, 3992a1; R.C. 1943, § 40-3309.

40-33-10. Municipal utilities fund — Contents — Kept separate from other funds — Use and disbursement.

All money received by a municipality for the service of any utility owned and operated by the municipality, and all money, receipts, and returns received from any investments of the earnings of such utilities, shall be paid into the treasury of the municipality and kept in a fund known as the municipal utilities fund. All of the moneys, earnings, and receipts deposited in such fund shall be kept separate and distinct from all other funds of the municipality until used. The fund shall be used only for the purposes and disbursed only in the manner provided by this chapter.

Source: S.L. 1933, ch. 181, § 1; R.C. 1943, § 40-3310.

40-33-11. Payments out of municipal utilities fund — Limitations.

Upon proper orders or warrants issued upon the authority of the governing body of the municipality, there shall be paid out of the municipal utilities fund all sums necessary for the operation, maintenance, enlargement, repair, alteration, improvement, and extension of the plant or plants of which the earnings go into the fund, but no municipality shall pay out of nor divert from the fund any sum for any other purpose except as provided in section 40-33-12.

Source: S.L. 1933, ch. 181, § 2; R.C. 1943, § 40-3311.

Notes to Decisions

Contract and Budget Limitations.

The contract and budget limitations applicable to expenditure of moneys raised by taxation do not apply to disbursements pursuant to this section out of the municipal utilities fund for the repair of utilities. Merchants Nat'l Bank & Trust Co. v. Grand Forks, 130 N.W.2d 212, 1964 N.D. LEXIS 130 (N.D. 1964).

Cost Payable from Net Earnings.

Where a city was authorized to purchase and procure an electric plant, the cost being payable from net earnings only, and covenanted and pledged the earnings to that effect, it did not violate this section. Thomas v. McHugh, 65 N.D. 149, 256 N.W. 763, 1934 N.D. LEXIS 182 (N.D. 1934).

40-33-12. Surplus in municipal utilities fund — How expended.

When the governing body of the municipality determines that there is a cash surplus in the municipal utilities fund over and above any amount necessary to provide adequately for the operation, maintenance, repair, enlargement, alteration, improvement, and extension of the plant or plants, it may invest the surplus or transfer it or a portion thereof as follows:

  1. All or any part of the surplus may be invested by the governing body in interest-bearing bonds of the United States government, the state of North Dakota, or any bonds or special improvement district warrants of the municipality in which the municipal plant is located, and all the principal and interest on the warrants and bonds, when repaid, shall be placed back in the municipal utilities fund; or
  2. The governing body may transfer from the surplus in the fund to the general fund of the municipality or to any other fund of the municipality a total sum of not more than twenty percent of the gross receipts of the municipal utilities for the fiscal year of the municipality during which the transfer or transfers are made. In addition the governing body, upon adoption of a resolution declaring it necessary and upon approval of a majority of the votes cast on the question at a regular city election, may transfer to the general fund of the municipality or to any other fund of the municipality from the surplus in the municipal utilities fund at the end of any fiscal year. The resolution and ballot shall state the specific amount or percentage to be transferred as hereinbefore provided.

Source: S.L. 1933, ch. 181, § 3; R.C. 1943, § 40-3312; S.L. 1947, ch. 289, § 1; 1951, ch. 270, § 1; 1957 Supp., § 40-3312; S.L. 1969, ch. 375, § 1; 1997, ch. 108, § 25.

40-33-13. Municipality may sell surplus electricity or water outside of municipal limits.

Whenever the governing body shall deem it advisable, a municipality owning and operating its own electric lighting system or waterworks may enter into contracts with persons, corporations, or limited liability companies maintaining manufacturing plants, residences, or other buildings outside of the municipal limits, to furnish such plants or buildings with electricity or water if it can be furnished from the surplus remaining after supplying the needs of the municipality and its inhabitants.

Source: S.L. 1917, ch. 73, § 1; C.L. 1913, 1925 Supp., § 3992a2; R.C. 1943, § 40-3313; S.L. 1993, ch. 54, § 106.

Notes to Decisions

Failure to Comply with Statutory Procedure.

No contract to furnish water to out-of-town property owner existed where no effort was made to comply with statutory requirement that contract be executed by executive officer and city auditor; municipal officers could not ignore such requirements and create an implied contract by their conduct, their acquiescence in extending such service giving, at best, the water users a license which city could not arbitrarily terminate, but which could be terminated for good cause. Satrom v. Grand Forks, 163 N.W.2d 522, 1968 N.D. LEXIS 87 (N.D. 1968).

40-33-14. Contract to supply surplus water or electricity outside of municipal limits.

If the governing body decides to furnish electricity or water outside the municipal limits, it shall be done by a contract authorized by the governing body and executed on its part by the executive officer and the city auditor and by the customer or customers to be supplied. No such contract shall be authorized or entered into at any rate or price for electricity or water which shall discriminate against the inhabitants of the municipality, or which shall impose any direct tax burden upon the taxable property in the municipality, or in such amount as will interfere with the ability of the municipality to provide adequate electricity or water for its own use and the use of the inhabitants thereof.

Source: S.L. 1917, ch. 73, § 2; C.L. 1913, 1925 Supp., § 3992a3; R.C. 1943, § 40-3314; S.L. 1967, ch. 323, § 187.

Notes to Decisions

Failure to Comply with Statutory Procedure.

No contract to furnish water to out-of-town property owner existed where no effort was made to comply with statutory requirement that contract be executed by executive officer and city auditor; municipal officers could not ignore such requirements and create an implied contract by their conduct, their acquiescence in extending such service giving, at best, the water users a license which city could not arbitrarily terminate, but which could be terminated for good cause. Satrom v. Grand Forks, 163 N.W.2d 522, 1968 N.D. LEXIS 87 (N.D. 1968).

40-33-15. Proceedings instituted under existing law — How completed.

Any proceedings instituted under the law as it was at the time of the purchase, erection, operation, maintenance, enlargement, improvement, or extension of a municipal utility or the lease thereof from any person, firm, corporation, or limited liability company or the sale or lease of any such plant, system, or line to any person, firm, corporation, or limited liability company may be completed under the law as it existed at the time such proceedings were taken.

Source: S.L. 1923, ch. 255, § 2; C.L. 1913, 1925 Supp., § 3992b2; S.L. 1927, ch. 197, § 1, subs. 8; 1929, ch. 172, § 8; R.C. 1943, § 40-3315; S.L. 1993, ch. 54, § 106.

40-33-16. Municipality may purchase water for distribution.

  1. Any city owning a system for the distribution of water for fire protection and other public purposes and for selling water to its inhabitants and industries, but for which the water supply is unsuitable or inadequate, may contract to purchase water at wholesale for those purposes from any person, firm, public or private corporation, or limited liability company able and willing to furnish the same, upon the terms and during the period, not exceeding forty years, as the city governing body deems appropriate. The contract must be authorized by an ordinance submitted to the voters for approval by a majority of those voting on the proposition before it takes effect. Pursuant to the ordinance and contract, the city may bind itself:
    1. To establish and maintain rates and charges for supplying water by it to its inhabitants and industries, either according to a prescribed schedule agreed upon or sufficient to produce net stated amounts for specified periods during the life of the contract, or both, and to appropriate and use the same for payments to become due under the contract, and, if the contract so provides, the city is obligated to pay for the water solely out of the net revenues;
    2. To pay, at an agreed rate or rates, for all water taken by the city under the contract and not resold by it; and
    3. To do and perform any other acts or things the governing body deems reasonable and appropriate for the procurement of the water on the most efficient and economical basis.
  2. Notwithstanding subsection 1, contracts to purchase water from the water supply system created by the Red River valley water supply project may have a term exceeding forty years and, if executed in relation to the initial construction of the system, need not be submitted to the voters for approval.
  3. If any payments under any contract are to be made solely out of net revenues, the contract may fix and prescribe the method or basis on which net revenues are to be computed.

Source: S.L. 1943, ch. 184, § 1; R.C. 1943, § 40-3316; S.L. 1967, ch. 323, § 188; 1993, ch. 54, § 106; 2019, ch. 512, § 1, effective August 1, 2019.

Notes to Decisions

Contract with United States.

A municipality is authorized to contract with the United States for a water supply. Harding v. Dickinson, 76 N.D. 71, 33 N.W.2d 626, 1948 N.D. LEXIS 60 (N.D. 1948).

Method of Payment.

Municipality has authority to purchase water and to bind itself to raise the money to pay for the same in such a manner as would secure for it the most efficient and economical contract. Harding v. Dickinson, 76 N.D. 71, 33 N.W.2d 626, 1948 N.D. LEXIS 60 (N.D. 1948).

City may bind itself to make payments out of net water revenues combined with a general obligation on the city to pay any deficiency. Harding v. Dickinson, 76 N.D. 71, 33 N.W.2d 626, 1948 N.D. LEXIS 60 (N.D. 1948).

If the contract provides that the payments stipulated shall be made solely out of the net water revenues, then there is or will be no obligation on the part of the city either implied or contingent to make payment otherwise than such as may be made from the net revenues. Harding v. Dickinson, 76 N.D. 71, 33 N.W.2d 626, 1948 N.D. LEXIS 60 (N.D. 1948).

Collateral References.

Propriety of injunctive relief against diversion of water by municipal corporation or public utility, 42 A.L.R.3d 426.

40-33-17. City may contract for water treatment plant.

Any city owning and operating a system of waterworks supplying water for municipal purposes and to its inhabitants and industries may enter into a contract in the manner hereinafter set forth, with any person, firm, public or private corporation, or limited liability company able and willing to perform such contract, for the purchase and installation of a plant for the treatment of such water supply by the removal of minerals, gases, and other impurities therefrom, including, but without limiting the generality hereof, the construction of reservoirs or settling basins and furnishing of machinery and equipment for such purpose, the construction of buildings necessary to house the same, and any modifications, improvements, and additional mains necessary to connect such plant with the existing water supply system.

Source: S.L. 1949, ch. 272, § 1; R.C. 1943, 1957 Supp., § 40-3317; S.L. 1993, ch. 54, § 106.

40-33-18. Resolution authorizing contract — Payment solely through net revenue — Issuance of revenue bonds or of certificates evidencing indebtedness under contract.

Any such contract shall be authorized by resolution or resolutions duly adopted by the governing body of the city. Such resolutions and contract shall provide that the cost of the plant shall be paid solely out of the net revenue thereof, to be derived from special rates and charges imposed and collected for the service thereof to users of the municipal waterworks system, after payment of the reasonable and current expenses of operation and maintenance of such plant. The governing body may provide for the payment of such cost by the issuance of revenue bonds in accordance with the provisions of chapter 40-35, which bonds may be sold as provided in said chapter or may be delivered to the contractor in payment of the contract price, or it may be provided in said resolutions and contract that such price shall be payable in stated installments over a period not exceeding ten years, with interest at a rate not exceeding eight percent per annum, payable annually or semiannually. Said payments may be evidenced by certificates executed by the executive and recording officers, and such certificates may have interest coupons attached.

Source: S.L. 1949, ch. 272, § 2; R.C. 1943, 1957 Supp., § 40-3318; S.L. 1971, ch. 249, § 17; 1973, ch. 80, § 16.

40-33-19. Agreements authorized — Special rates and charges.

In and by such resolutions and contract the city may bind itself to establish and maintain special rates and charges for the service of said plant, over and above its regular water rates, sufficient to produce net revenues adequate to make all payments of principal and interest on said revenue bonds or certificates when such payments become due, or to establish and maintain a prescribed schedule of such rates and charges, to pay, at an agreed rate or rates, for treatment of all water used by the city and not resold, and to do and perform any other acts or things which, in the discretion of the governing body, are deemed reasonable and appropriate for the construction, operation, and financing of said plant on the most efficient and economical basis, and the city may make covenants and agreements with respect to any and all of the matters stated in section 40-35-13.

Source: S.L. 1949, ch. 272, § 3; R.C. 1943, 1957 Supp., § 40-3319.

40-33-20. Indebtedness not general obligation of municipality — Conditional sales authorized.

No indebtedness on the general credit of the municipality shall be deemed to be incurred by reason of any covenant or agreement contained in said contract or in the resolutions of the city with reference thereto. No revenues received from taxes or any other source, other than the revenues derived from said plant as hereinabove provided, shall be pledged for the payment of any contract executed or revenue bonds or certificates issued under the provisions of sections 40-33-17 through 40-33-21. Such contract, bonds, or certificates shall not constitute a lien or charge on any property of the city, except that if the contract price is not paid by the issuance of revenue bonds, title to the plant or any specified portion thereof may be retained by the contractor as security for the purchase price, with right of repossession in the manner provided for property sold under a conditional sales contract, until full payment of the purchase price.

Source: S.L. 1949, ch. 272, § 4; R.C. 1943, 1957 Supp., § 40-3320.

40-33-21. Powers conferred are supplementary.

The powers conferred by sections 40-33-17 through 40-33-21 shall be in addition and supplemental to, and not in substitution for, and the limitations imposed by sections 40-33-17 through 40-33-21 shall not affect the powers conferred by any other law, and no other law shall be deemed repealed hereby. So far as the provisions of sections 40-33-17 through 40-33-21 are inconsistent with any other laws of this state, the provisions of sections 40-33-17 through 40-33-21 shall be controlling with reference to the making of contracts and the issuance of revenue bonds or certificates of the types and for the purposes herein mentioned.

Source: S.L. 1949, ch. 272, § 5; R.C. 1943, 1957 Supp., § 40-3321.

40-33-22. Joint construction and operation of gas transmission or distribution systems or plants.

In accordance with the provisions of this chapter, any municipality within this state may join with other municipalities for the purpose of jointly constructing, acquiring, or operating natural or artificial gas transmission lines, distribution systems, and plants upon such contractual basis as may be desirable and mutually agreeable to the governing bodies of the municipalities concerned. Such lines, systems, or plants shall be jointly operated by a board consisting of such representatives of each municipality as may be agreed by the governing bodies thereof, except that each such municipality shall have at least one member on such board, as selected by the governing body thereof. The governing board of such jointly operated utilities shall have all of the powers of any utility owned or operated by a single municipality. Before any such jointly operated utility shall begin operation, it shall first secure a certificate of convenience and necessity from the public service commission, which shall issue or refuse the issuance of such certificate upon like procedure and grounds as is required for such action upon the certificates of privately owned utilities. Such jointly operated utilities shall be subject to all rules, regulations, and orders of the public service commission in the same manner as privately owned utilities.

Source: S.L. 1955, ch. 259, § 2; R.C. 1943, 1957 Supp., § 40-3322.

40-33-23. Sale of gas outside municipalities.

Any jointly operated utility as provided in section 40-33-22 shall be authorized to sell and dispose of gas outside the limits of incorporated municipalities in such manner and upon such terms and conditions as may be prescribed by the public service commission.

Source: S.L. 1955, ch. 259, § 3; R.C. 1943, 1957 Supp., § 40-3323.

40-33-24. Funds of jointly operated utilities.

All funds of any jointly operated utility as provided in section 40-33-22 shall not be subject to the provisions of sections 40-33-10 and 40-33-11, but shall be kept separate and apart from all other funds of any participating municipality and shall be disbursed in the manner provided by the governing board thereof.

Source: S.L. 1955, ch. 259, § 4; R.C. 1943, 1957 Supp., § 40-3324; S.L. 1979, ch. 187, § 82; 2001, ch. 122, § 6.

40-33-25. Surplus funds of jointly operated utility.

Any surplus funds of any jointly operated utility, as provided for in section 40-33-22, shall be distributed to the participating municipalities ratably in proportion to their interest or ownership therein. Such surplus funds received by any municipality shall be disposed of by the governing body of the municipality in accordance with the provisions of section 40-33-12.

Source: S.L. 1955, ch. 259, § 5; R.C. 1943, 1957 Supp., § 40-3325.

40-33-26. Municipal transportation system — Resolution.

Whenever the governing body of any municipality shall determine that the public convenience and necessity of the municipality require the purchase, acquisition, or establishment of a public transportation system, it may, by resolution adopted by the affirmative vote of a majority of its members, determine that the anticipated net revenues of such public transportation system would be insufficient to assure the sale of revenue bonds for the total cost thereof, and that a specific amount, in dollars, of the cost thereof should be paid for through the issuance and sale of general obligation bonds and the remainder of the cost should be paid for through the issuance and sale of revenue bonds.

Source: S.L. 1955, ch. 273, § 1; R.C. 1943, 1957 Supp., § 40-3326.

40-33-27. Municipal transportation system — Bonds.

Upon the passage of a resolution as set forth in section 40-33-26, the municipality shall proceed in the manner set forth in chapter 21-03 for the issuance of the amount of general obligation bonds provided in said resolution, and if and when the issuance of general obligation bonds is authorized by the vote of the electors of the municipality as in said chapter provided, it shall proceed as provided in chapter 40-35, for the issuance of the amount of revenue bonds provided in said resolution. In all resolutions and notices of election in connection with the issuance of general obligation bonds, reference shall be made to the amount of revenue bonds which the municipality proposes to issue for the purpose in addition to the general obligation bonds.

Source: S.L. 1955, ch. 273, § 2; R.C. 1943, 1957 Supp., § 40-3327.

40-33-28. Municipal transportation system — Bond limitations.

All general obligation bonds issued pursuant to sections 40-33-26 through 40-33-29 shall be subject to all the restrictions, qualifications, and limitations of chapter 21-03, as well as all constitutional limitations upon indebtedness, and all revenue bonds issued pursuant to sections 40-33-26 through 40-33-29, together with all revenues of the transportation system, shall be subject to all the limitations, qualifications, and restrictions of chapter 40-35.

Source: S.L. 1955, ch. 273, § 3; R.C. 1943, 1957 Supp., § 40-3328.

40-33-29. Municipal transportation system — Application — Intent.

The provisions of sections 40-33-26 through 40-33-29 shall not apply to any case in which a municipality determines that the acquisition of a public transportation system should be financed through general obligation bonds only, or through revenue bonds only, it being the intention of the legislative assembly that sections 40-33-26 through 40-33-29 shall apply only in cases in which such financing is to be accomplished through a combination of revenue bonds and general obligation bonds.

Source: S.L. 1955, ch. 273, § 4; R.C. 1943, 1957 Supp., § 40-3329.

40-33-30. Right of municipal electric utilities and municipal power agencies to construct, own, and maintain electric transmission lines.

  1. For purposes of this section, the terms electric transmission provider, electric transmission line, and electric public utility, have the same meanings as in section 49-03-01.5. Municipal power agency has the meaning provided in section 40-33.2-02 and also includes a municipal power agency of which any municipality in this state is a member.
  2. Except as provided in subsection 3, an electric transmission provider or designee may not construct an electric transmission line interconnecting with an existing electric transmission line owned, leased, or operated by a municipal utility or municipal power agency, unless the electric transmission provider or designee has provided written notice to the municipal utility or municipal power agency of its intention to do so. If the municipal utility or municipal power agency provides written notification to the electric transmission provider or designee within one hundred eighty days from receipt of the written notice under this subsection, that the municipal utility or municipal power agency is willing and able to construct and operate a similar electric transmission line, the municipal utility or municipal power agency shall have the right to construct said line.
  3. If an electric transmission line would interconnect facilities owned, leased, or operated by a municipal utility or municipal power agency and facilities owned, leased, or operated by a rural electric cooperative or an electric public utility doing business in this state the following conditions apply:
    1. The municipal utility or municipal power agency and the rural electric cooperative or the electric public utility shall attempt to agree on all terms and conditions, including design, construction, ownership, and operation of the electric transmission line.
    2. If parties are unable to agree, this subsection does not compel a party to participate in the project or be construed as a waiver by any party of its right to establish and enforce any requirements for interconnection of transmission facilities to its transmission system.

History. S.L. 2015, ch. 85, § 2, effective August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

Effective Date.

Section 3 of chapter 85, S.L. 2013 provides: “APPLICATION. This Act applies to any electric transmission line that is scheduled to begin being constructed after December 31, 2015.”

CHAPTER 40-33.1 Municipal Steam Heating Authorities

40-33.1-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Authority” means any corporation created under the authority of this chapter.
  2. “Board” means the members of the authority.
  3. “City” means any city with a municipal steam heating authority.
  4. “Project” means any area or place operated or to be operated by an authority for the making or producing of steam, and includes, without being limited to, all real and personal property, boilers, furnaces, storage vessels, meters, mechanical equipment, and all appurtenances and facilities either on, above, or under the ground which are used in connection with the making or transporting of steam.
  5. “Projects” means more than one project.
  6. “Property owner” means either a real estate owner or the beneficial owner of a leasehold on a building constructed on railroad property.
  7. “Real property” means lands, structures, franchises, and interest in lands, and any and all things usually included within the said term, and includes not only fees simple absolute but also any and all lesser interests, such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest, or right, legal or equitable, including terms of years.

Source: S.L. 1975, ch. 378, § 1.

40-33.1-02. Municipal steam heating authorities.

Any city may create a board to be known as a “municipal steam heating authority”. Such board shall be a body corporate, constituting a public benefit corporation, and its existence shall commence upon the appointment of the members as herein provided. It shall consist of a chairman and four other members, who shall be appointed by the governing body of the city. Three members of the board shall be property owners within the benefited areas and two members shall be appointed at large. Of the members first appointed, one shall be appointed for a period of one year, one for a period of two years, one for a period of three years, one for a period of four years, and one for a period of five years. At the expiration of such terms, the terms of office of their successors shall be five years. Each member shall continue to serve until the appointment and qualification of the member’s successor. Vacancies in such board occurring otherwise than by the expiration of a term shall be filled for the unexpired term. The members of the board shall choose from their number a chairman and a vice chairman. The governing body of the city may remove any member of the board for inefficiency, neglect of duty, or misconduct in office, giving that member a copy of the charges against that member and an opportunity of being heard in person, or by counsel, in that member’s defense upon not less than ten days’ notice. The members of the board shall be entitled to no compensation for their services but shall be entitled to reimbursement for their actual and necessary expenses incurred in the performance of their official duties. The powers of the authority shall be vested in and exercised by a majority of the members of the board then in office. Such board may delegate to one or more of its members or to its officers, agents, and employees such powers and duties as it may deem proper. Such board and the corporate existence of the authority shall continue until all its liabilities have been met and until the existence of the authority is terminated by official action of the governing body of the city. Upon its ceasing to exist, all its rights and properties shall pass to the city.

Source: S.L. 1975, ch. 378, § 2.

40-33.1-03. Purpose and powers of an authority.

The purpose of an authority shall be to construct, operate, acquire, or maintain one or more projects in the city and to promote and acquire municipal steam heating facilities in accordance with the provisions of this chapter. To carry out such purpose, an authority shall have power:

  1. To sue and be sued.
  2. To acquire, hold, and dispose of personal property for its corporate purposes.
  3. To acquire necessary real property in the name of the city by purchase.
  4. To make bylaws for the management and regulation of its affairs for the regulation of the project.
  5. To appoint officers, agents, and employees, to prescribe their qualifications, and to fix their compensation; provided, however, the officers, agents, and employees shall not be subject to the civil service laws or ordinances.
  6. To appoint an attorney to represent the board, who may be the city attorney, and to fix that person’s compensation.
  7. To make contracts and leases and to execute all instruments necessary or convenient.
  8. To construct such buildings, structures, and facilities as may be necessary.
  9. To reconstruct, improve, maintain, and operate the projects.
  10. To accept grants, loans, or contributions from the United States, the state of North Dakota, or any agency or instrumentality of either of them, or the city, or an individual, by bequest or otherwise, and to expend the proceeds for any purposes of the authority.
  11. To fix and collect user fees, and other charges for the use and sale of steam.
  12. To construct, operate, or maintain in the projects all facilities necessary or convenient in connection therewith and to contract for the construction, operation, or maintenance of any parts thereof or for services to be performed.
  13. To borrow money on such terms as it may deem most convenient, and to sign notes and pledge any portion of revenues derived from user fees and charges, in connection with such borrowing.
  14. To mortgage all or any part of its real or personal property then owned or thereafter acquired.

Source: S.L. 1975, ch. 378, § 3.

40-33.1-04. Financing projects and facilities.

An authority may provide funds for its purposes by using the following methods or any combination thereof:

  1. Charging a fee for the sale or use of steam produced by the authority.
  2. Issuing notes of an authority as authorized by this chapter.
  3. In cooperation with cities whereby cities may agree to assist in financing projects and facilities through the issuance of municipal bonds or other obligations, budgeting of current funds, the levy of taxes or special assessments, or by any combination of these means pursuant to or in accordance with the provisions of chapters 21-03, 40-22 to 40-27, 40-35, 40-40, and 40-57, and all other applicable laws now in force or hereafter enacted.
  4. Making a special assessment against any property directly benefited by the steam produced by the authority, as provided in section 40-33.1-15.

Source: S.L. 1975, ch. 378, § 4; 1981, ch. 91, § 32.

40-33.1-05. Officers and employees.

Municipal steam heating authorities shall not be subject to civil service or merit system laws, veterans preference laws, or other laws, ordinances, and regulations pertaining to the status of municipal employees. Employees of an authority shall have the same position as employees of a private corporation and the board of directors of an authority shall manage their employee relationships in the same manner as private corporations.

Source: S.L. 1975, ch. 378, § 5.

40-33.1-06. Conveyance of property by a city to an authority — Acquisition of property by a city or by an authority.

  1. A city may, by resolution or resolutions of the governing body or by instruments authorized by such resolutions, convey, with or without consideration, to an authority real and personal property owned by the city for use by an authority as a project or projects or a part thereof.
  2. A city may acquire in the name of the city by purchase or condemnation real property in the city for any of the projects.
  3. Contracts may be entered into between a city and an authority providing for the property to be conveyed by a city to an authority, the additional property to be acquired by a city and so conveyed, and the amounts, terms, and conditions of payment to be made by an authority. Any such contracts between a city and an authority and any real property belonging to an authority may be pledged by the authority to secure its notes and may not be modified thereafter except as provided by the terms of the pledge. The governing body of a city may authorize such contracts between a city and an authority and no other authorization on the part of a city for such contracts shall be necessary.
  4. An authority may itself acquire real property for a project in the name of the city at the cost and expense of the authority by purchase. An authority shall have the use and occupancy of such real property so long as its corporate existence shall continue.
  5. In case an authority shall have the use and occupancy of any real property which it shall determine is no longer required for a project, then, if such real property was acquired at the cost and expense of the city, the authority shall have power to surrender its use and occupancy thereof to the city, or, if such real property was acquired at the cost and expense of an authority, then the authority shall have power to sell, lease, or otherwise dispose of said real property at public or private sale, and shall retain and have the power to use the proceeds of sales, rentals, or other moneys derived from the disposition thereof for its purposes.

Source: S.L. 1975, ch. 378, § 6.

40-33.1-07. Construction contracts.

An authority shall let contracts for construction in the same manner, so far as practicable, as is provided by law for contracts of cities except that if the estimated expense of a contract does not exceed five hundred dollars, such contract may be entered into without public letting. Nothing in this section shall be construed to limit the power of an authority to do any construction directly by the officers, agents, and employees of the authority.

Source: S.L. 1975, ch. 378, § 7.

40-33.1-08. Moneys of the authority.

All moneys of an authority shall be paid to the city auditor as agent of the authority, who shall not commingle such moneys with any other moneys. Such moneys shall be deposited in a separate bank account or accounts. The moneys in such accounts shall be paid out by the auditor on requisition of the chairman of the authority or of such other person or persons as the authority may authorize to make such requisitions after audit by the auditor. All deposits of such moneys shall, if required by the auditor or the authority, be secured by obligations of the United States or of the state of North Dakota of a market value equal at all times to the amount of the deposit, and all banks and trust companies are authorized to give such security for such deposits. The auditor and the auditor’s legally authorized representatives are authorized and empowered from time to time to examine the accounts and books of the authority, including its receipts, disbursements, contracts, leases, sinking funds, investments, and any other records and papers relating to its financial standing. An authority shall have power, notwithstanding the provisions of this section, to contract with the holders of any of its notes as to the custody, collection, securing, investment, and payment of any moneys of the authority, or any moneys held in trust or otherwise for the payment of notes or in any way to secure notes, and to carry out any such contract notwithstanding that such contract may be inconsistent with the previous provisions of this section. Moneys held in trust or otherwise for the payment of notes or in any way to secure notes and deposits of such moneys may be acquired in the same manner as moneys of the authority, and all banks and trust companies are authorized to give such security for such deposits.

Source: S.L. 1975, ch. 378, § 8; 2001, ch. 122, § 7.

40-33.1-09. Notes of an authority.

  1. An authority shall have power from time to time to issue notes and from time to time to issue renewal notes, herein referred to as notes, maturing not later than five years from their respective original dates for any purpose mentioned in section 40-33.1-03, including the acquisition, construction, reconstruction, and repair of personal and real property of all kinds deemed by the board to be necessary or desirable to carry out such purpose, as well as to pay such expenses as may be deemed by the board necessary or desirable to the financing thereof and placing the project or projects in operation, whenever an authority shall determine the payment thereof can be made in full from any moneys or revenues which an authority expects to receive from any source. Such notes may, among other things, be issued to provide funds to pay preliminary costs of surveys, plans, or other matters relating to any proposed or existing project.
  2. An authority may pledge such moneys or revenues, subject to any other pledge thereof, for the payment of the notes and may in addition secure the notes by the guarantee of two or more property owners. It is the intention hereof that any pledge of revenues or other moneys made by an authority shall be valid and binding from the time when the pledge is made; that the revenues or other moneys so pledged and thereafter received by an authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against an authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
  3. Except as may otherwise be expressly provided by an authority, the notes shall be payable out of any moneys or revenues of an authority, subject only to any agreements with the holders of particular notes pledging any particular moneys or revenues. Notwithstanding the fact that the notes may be payable from a special fund, if they are otherwise of such form and character as to be negotiable instruments under article eight of the Uniform Commercial Code, the notes shall be and are hereby made negotiable instruments within the meaning of and for all the purposes of article eight of the Uniform Commercial Code.
  4. An authority shall have power out of any funds available therefor to purchase its own notes. An authority may hold, cancel, or resell such notes, subject to and in accordance with agreements with noteholders.
  5. In the discretion of an authority, the notes may be secured by a trust indenture by and between an authority and a corporate trustee, which may be any trust company or bank within or without the state of North Dakota. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the noteholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of an authority in relation to the construction, maintenance, operation, repair, and insurance of the project or projects and the custody, safeguarding, and application of all moneys, and may provide that the project or projects shall be constructed and paid for under the supervision and approval of consulting engineers. Notwithstanding the provisions of section 40-33.1-08, an authority may provide by such trust indenture for the payment of the proceeds of the notes and the revenues of the project or projects to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation, and repairs of the project or projects. If the notes shall be secured by a trust indenture, the noteholders shall have no authority to appoint a separate trustee to represent them, and the trustee under such trust indenture shall have and possess all of the powers which are conferred by section 40-33.1-13 upon a trustee appointed by noteholders.

Source: S.L. 1975, ch. 378, § 9.

40-33.1-10. Agreement of a city.

  1. Cities may pledge to and agree with the holders of the notes that the city will not limit or alter the rights hereby vested in the authority to acquire, construct, maintain, reconstruct, and operate the project or projects, to establish and collect rentals, fees, and other charges, and to fulfill the terms of any agreements made with the holders of the notes, or in any way impair the rights and remedies of the noteholders, until the notes, together with interest thereon, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the noteholders, are fully met and discharged.
  2. Authorities are hereby authorized, in their discretion, for and on behalf of themselves and the city which authorized them, to covenant and agree with the holders of the notes, with such exceptions and limitations as it may deem in the public interest, that no public steam heating facilities except those acquired and operated by the authority will be constructed or operated in the city by the city, or by any public benefit or other corporation, the members or some of which are elected or are appointed by city officials, until either the notes, together with interest thereon, interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the noteholders are fully met and discharged, or principal or interest of any of the notes shall be overdue and unpaid for a period of three years or more.

Source: S.L. 1975, ch. 378, § 10.

40-33.1-11. State and city not liable on notes — Exceptions as to cities.

The obligations of an authority shall not be a debt of the state of North Dakota and the state shall not be liable thereon. The obligations of an authority shall not be a debt of a city and a city shall not be liable thereon unless a city agrees to assist in financing projects and facilities through the issuance of municipal bonds or other obligations which are considered to be a part of the debt of the city as provided in section 40-33.1-04.

Source: S.L. 1975, ch. 378, § 11.

40-33.1-12. Tax exemptions.

  1. It is hereby determined that the creation of an authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the city which has authorized it and its environs, and is a public purpose, and an authority shall be regarded as performing a governmental function in the exercise of the powers conferred upon it by this chapter and shall be required to pay no ad valorem taxes upon any of the property acquired by it or under its jurisdiction or control or supervision or upon its activities.
  2. Any bonds or notes issued pursuant to this chapter, together with the income therefrom, as well as the property of an authority and income from any other source, shall be exempt from taxation, except for transfer and estate taxes.

Source: S.L. 1975, ch. 378, § 12.

40-33.1-13. Tax contract by the state.

The state of North Dakota covenants with the purchasers and with all subsequent holders and transferees of notes issued by an authority pursuant to this chapter, in consideration of the acceptance of and payment for the notes, that the notes of an authority issued pursuant to this chapter and the income therefrom, and all moneys, funds, and revenues pledged to pay or secure the payment of such notes shall at all times be free from taxation except for estate taxes and taxes on transfers by or in contemplation of death.

Source: S.L. 1975, ch. 378, § 13.

40-33.1-14. Remedies of noteholders.

  1. In the event that an authority shall default in the payment of principal of or interest on any issue of the notes after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or in the event that an authority shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of any issue of the notes, the holders of twenty-five percent in aggregate principal amount of the notes of such issue then outstanding, by instrument or instruments filed in the office of the recorder of the county in which the authority is located, unless the board of county commissioners designates a different official, and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such notes for the purposes herein provided.
  2. Such trustee may, and upon written request of the holders of twenty-five percent in principal amount of such notes then outstanding shall, in the trustee’s own name:
    1. By action or special proceeding enforce all rights of the noteholders, including the right to require an authority to collect revenues adequate to carry out by any agreement as to, or pledge of, such revenues, and to require an authority to carry out any other agreements with the holders of such notes and to perform its duties under this chapter.
    2. Bring suit upon such notes.
    3. By action or suit in equity, require an authority to account as if it were the trustee of an express trust for the holders of such notes.
    4. By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes.
    5. Declare all such notes due and payable, and if all defaults shall be made good then with the consent of the holders of twenty-five percent of the principal amount of such notes then outstanding, to annul such declaration and its consequences.
  3. The district court shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of noteholders. The venue of any such suit, action, or proceeding shall be laid in the county in which the authority is located.
  4. Before declaring the principal of all such notes due and payable, a trustee shall first give thirty days’ notice in writing to an authority.
  5. Any such trustee, whether or not the issue of notes represented by such trustee has been declared due and payable, shall be entitled as of right to the appointment of a receiver of any part or parts of the project, the revenues of which are pledged for the security of the notes of such issue, and such receiver may enter and take possession of such part or parts of the project and, subject to any pledge or agreement with noteholders, shall take possession of all moneys and other property derived from or applicable to the acquisition, construction, operation, maintenance, and reconstruction of such part or parts of the project and proceed with the acquisition of any necessary real property in connection with the project that an authority has covenanted to construct and with any construction which an authority is under obligation to do and to operate, maintain, and reconstruct such part or parts of the project and collect and receive all revenues thereafter arising therefrom subject to any pledge thereof or agreement with noteholders relating thereto and perform the public duties and carry out the agreements and obligations of an authority under the direction of the court. In any suit, action, or proceeding by the trustee, the fee, counsel fees, and expenses of the trustee and of the receiver, if any, shall constitute taxable disbursements and all costs and disbursements allowed by the court shall be a first charge on any revenues derived from such project.
  6. Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of noteholders on the enforcement and protection of their rights.

Source: S.L. 1975, ch. 378, § 14; 1999, ch. 278, § 67; 2001, ch. 120, § 1.

40-33.1-15. Authority may levy assessments against property to be benefited by project — Manner in which assessments to be made.

After making any contract to construct, reconstruct, repair, or purchase any real or personal property to be used in the production of steam, the authority may assess the cost of such contract, or any part thereof, against those property owners who are both purchasing or going to purchase steam from the authority and who will benefit from the completion of the contract. The determination, levy, manner of protest to, amendment of, and collection of the assessment shall be made by the authority, as near as is practicable, in the manner provided for water main and waterworks special assessments by municipalities.

Source: S.L. 1975, ch. 378, § 15.

40-33.1-16. Actions against an authority.

In every action against an authority for damages, for injuries to real or personal property, or for the destruction thereof, or for personal injuries or death, the complaint shall contain an allegation that at least thirty days have elapsed since the demand, claim, or claims upon which such action is founded were presented to a member of the authority, or to its secretary, or to its chief executive officer and that the authority has neglected or refused to make an adjustment or payment thereof for thirty days after such presentment.

Source: S.L. 1975, ch. 378, § 16.

CHAPTER 40-33.2 Municipal Power Agencies

40-33.2-01. Findings and purpose.

The purpose of this chapter is to provide a means for North Dakota cities which operate a utility under law for the local distribution of electric energy to secure, by individual or joint action among themselves or by contract with other public or private entities within or outside the state, an adequate, economical, and reliable supply of energy. To accomplish this purpose it is necessary for cities to have the authority, by agreement between two or more of their number, to create a separate municipal corporation with the power and authority to finance and acquire facilities for the generation or transmission of electric energy or interests in those facilities or rights to part or all of the capacity thereof. It is determined that an adequate, economical, and reliable supply of electric energy is essential to the orderly growth and prosperity of communities, and a shortage of electrical energy is inimical to the safety, health, welfare, and prosperity of residents of the state and to the sound growth and development of its communities. Such a shortage exists and is expected to continue and increase because of the difficulty in the operation of municipal generating plants, of achieving economies of size, limiting environmental impacts, and providing for peak loads. Accordingly, it is determined that the exercise of the authority granted herein will benefit the people of the state and serve a valid public purpose in improving and otherwise promoting their health, welfare, and prosperity.

Source: S.L. 1977, ch. 384, § 1; 1987, ch. 495, § 1.

40-33.2-02. Definitions.

In this chapter unless the context or subject matter otherwise requires:

  1. “Agency agreement” means a written agreement between two or more cities establishing a municipal power agency.
  2. “City” means a city organized under the laws of this state and authorized to engage in the local distribution and sale of electric energy, either individually or as a member of a municipal power agency.
  3. “City council” means the city council or the board of city commissioners, as the case may be, of the city concerned or affected.
  4. “Distribution” means the conveyance of electric energy to retail consumers from a transmission system or from a generation facility situated within or in the immediate vicinity of a city.
  5. “Generation” means the production of electricity by any means and the acquisition of fuel of any kind for that purpose, and includes the acquisition of fuel deposits and the acquisition or construction and operation of facilities for extracting fuel from natural deposits, for converting it for use in another form, for burning it in place, and for transportation and storage.
  6. “Governing body”, with respect to a city, means the city council or, if another board, commission, or body is empowered by law or its charter or by resolution of the city council to establish and regulate rates and charges for the distribution of electric energy within the city, the board, commission, or body shall be deemed to be the “governing body”. When the levy of a tax or the incurring of an obligation payable from taxes or any other action of the board, commission, or body requires the concurrence, approval, or independent action of the city council or another body under the city’s charter or any other law, the action shall not be taken until concurrence or approval is received or independent action is taken and, if required under the city’s charter or any other law, approved by not less than sixty percent of the qualified electors voting on the question at any regular or special election. The concurrence of the city council or other elected body charged with the general management of a city shall be required, prior to the adoption by the city of any resolution approving an agency agreement.
  7. “Municipal power agency” means a separate political subdivision and municipal corporation created by agreement between two or more cities, and approved by not less than sixty percent of the qualified electors voting on the question at any regular or special election in each of those cities, pursuant to section 40-33.2-03 to exercise any of the powers of acquisition, construction, reconstruction, operation, repair, extension, or improvement of electric generation or transmission facilities or the acquisition of any interest therein or any right to part or all of the capacity thereof.
  8. “Person” means an individual, public agency, or a private corporation, limited liability company, firm, partnership, cooperative association, or business trust of any nature whatsoever, organized and existing under the laws of any state or the United States or under the laws of the Dominion of Canada or any province or political subdivision thereof.
  9. “Project” means any plant, works, system, facilities, and property of any nature whatsoever, together with all parts thereof and appurtenances thereto, used or useful in the generation, production, transmission, purchase, sale, exchange, or interchange of electric energy or any interest therein or capacity thereof.
  10. “Public agency” means any city or other municipal corporation, political subdivision, governmental unit, or public corporation created by or pursuant to the laws of this state or of another state or of the United States or any municipal corporation, political subdivision, governmental unit, or public corporation created by or pursuant to the laws of the Dominion of Canada or any province thereof, or other body declared by the laws of any state or the United States or the Dominion of Canada, or any province thereof to be a department, agency, or instrumentality thereof.
  11. “Real property” means lands, structures, franchises, and interests in land, including lands under water, riparian rights, fees simple absolute, lesser interests such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments, legal and equitable estates, interests, and rights, terms of years, liens on real property by way of judgments, mortgages, or otherwise, and claims for damages to real property.
  12. “Transmission” means the transfer of electric energy from a generating facility to or between one or more cities or municipal power agencies or other persons with whom they may contract, and includes conversion of current and voltage and transfer of energy from another source in exchange for energy supplied by such contracting parties, but does not include distribution.

Source: S.L. 1977, ch. 384, § 1; 1979, ch. 447, § 2; 1987, ch. 495, § 2; 1993, ch. 54, § 106.

Collateral References.

Industrial park or similar development as public use justifying condemnation of private property, 62 A.L.R.4th 1183.

40-33.2-03. Municipal power agencies — Incorporation.

  1. Any two or more cities may form a municipal power agency by executing an agency agreement authorized by a resolution of the governing body of each city and approved by not less than sixty percent of the qualified electors voting on the question at any regular or special election in each of those cities. The agency agreement when completed shall state:
    1. That the municipal power agency is created and incorporated under this chapter as a municipal corporation and a political subdivision of the state.
    2. The name of the agency, which shall include the words “municipal power agency”.
    3. The names of the cities which have approved the agency agreement and are the initial members of the municipal power agency.
    4. The names and addresses of the persons initially appointed by the resolutions approving the agreement to act as the representatives of the cities, respectively, in the exercise of their powers as members.
    5. Any limitations upon the terms of representatives of the respective member cities; provided, that such representatives shall always be selected and vacancies in their offices declared and filled by resolutions of the governing bodies of the respective cities.
    6. The names of the initial board of directors of the municipal power agency, who shall be not less than three persons who are representatives of the respective member cities, selected by such representatives. The agreement shall provide that each member city shall be represented on the board of directors.
    7. The location of the initial registered office of the municipal power agency.
    8. That the cities which are members of the municipal power agency are not liable for its obligations.
    9. Any other provision for regulating the business of the municipal power agency or the conduct of its affairs which may be agreed by the member cities, consistent with this chapter.
  2. The agency agreement and a certified copy of the resolution of the governing body of each city shall be filed for record with the secretary of state. If the agency agreement conforms to the requirements of this section, the secretary of state shall record it and issue and record a certificate of incorporation. The certificate shall state the name of the municipal power agency and the fact and date of incorporation. Upon the issuance of the certificate of incorporation, the municipal power agency shall exist as a municipal corporation and a political subdivision of the state. The certificate of incorporation shall be conclusive evidence of the fact of incorporation.
  3. The initial board of directors of the municipal power agency, unless otherwise provided by the agency agreement, shall be elected prior to the filing of the agreement by a majority vote of the persons acting as representatives of the member cities, from among their members. After commencement of existence, the first meeting of the board of directors shall be held at the call of the directors, after notice, for the purpose of adopting the initial bylaws, electing officers, and for any other business that comes before the meeting.
  4. Unless otherwise provided by the agency agreement, the bylaws of the municipal power agency, and any amendments thereto, shall be proposed by the board of directors and shall be adopted by a majority vote of the representatives of the member cities, at a meeting held after notice. The initial agency agreement or the initial bylaws shall not take effect until approved by not less than sixty percent of the qualified electors voting on the question at any regular or special election in each of the member cities. The agency agreement or the bylaws shall state:
    1. The qualifications of member cities, and any limitations upon their number.
    2. Any conditions of membership.
    3. Manner and time of calling regular meetings of representatives of member cities.
    4. Manner and conditions of terminating membership.
    5. Such other provisions for regulating the affairs of the municipal power agency as the representatives of the member cities shall determine to be necessary.
  5. Every municipal power agency shall maintain an office in the state to be known as its registered office. When a municipal power agency desires to change the location of its registered office, it shall file with the secretary of state a certificate of change of location of registered office, stating the new location and the effective date of change. When the certificate of change of location has been duly filed, the municipal power agency may make the change without any further action.
  6. Each of the directors shall hold office for the term selected and until a successor has been selected and has qualified. Directors shall discharge their duties in good faith and with diligence and care. The agency agreement or the bylaws may prescribe the number, term of office, powers, authority, and duties of directors, the time and place of their meetings, and other regulations concerning directors. Except when the agency agreement or bylaws prescribe otherwise, the term of office of a director shall be for one year. Except when the agency agreement or bylaws prescribe otherwise, a meeting of the board of directors may be held at any place, within or without the state, designated by the board, after notice, and an act of the majority of the directors present at a meeting at which a quorum is present is the act of the municipal power agency. Any vacancy occurring on the board shall be filled in the same manner and by a representative of the same city as on the initial board.
  7. Except when the agency agreement or bylaws prescribe otherwise, the board of directors shall appoint a president from its membership, and a secretary and treasurer, and any other officers or agents deemed to be necessary, who need not be directors or representatives of the member cities. Except when the agency agreement or bylaws prescribe otherwise, an officer may be removed without cause by the board of directors. Officers of the municipal power agency shall have the authority and duties in the management of the business of the municipal power agency that the agency agreement or bylaws prescribe, or in the absence of such prescription, as the board of directors determines.
  8. Except as otherwise provided in the agency agreement or the bylaws, the duly authorized representatives of each member city shall act as, and vote on behalf of, such city. Except when the agency agreement or bylaws provide otherwise, representatives of the member cities shall hold at least one meeting each year for the election of directors and for the transaction of any other business. Except when the agency agreement or bylaws prescribe otherwise, special meetings of the representatives may be called for any purpose upon written request by any representative to the president or secretary to call the meeting. Such officer shall give notice of the meeting to be held within the time period prescribed by the agency agreement or the bylaws. Unless the agency agreement or bylaws provide for a different percentage, a quorum for a meeting of the representatives of the member cities is a majority of the total representatives of the member cities and a quorum for meetings of the board of directors is a majority of the membership of such board.
  9. The agency agreement may be amended as proposed at any meeting of the representatives of the member cities for which notice, stating the purpose, shall be given to each representative and unless the agency agreement or bylaws provide otherwise, shall become effective when ratified by resolutions of the governing bodies of a majority of the member cities and approved by not less than sixty percent of the qualified electors voting on the question at any regular or special election in each of those member cities constituting the majority. Each amendment and the resolutions of the governing bodies approving it shall be filed for record with the secretary of state.
  10. Each member city shall have full power and authority, within budgetary limits applicable to it, to appropriate money for the payment of expenses of the formation of the municipal power agency and of its representative or representatives in exercising its functions as a member of the municipal power agency.

Source: S.L. 1977, ch. 384, § 1; 1979, ch. 447, §§ 3 to 5.

40-33.2-04. Municipal power agencies — Powers.

A municipal power agency shall be a municipal corporation and a political subdivision of the state and shall have all of the powers enumerated in this section, in furtherance of the purpose stated in section 40-33.2-01, and in the exercise thereof shall be deemed to be performing an essential governmental function. All powers of the municipal power agency shall be exercised by its board of directors, unless otherwise provided by the agency agreement or bylaws. A municipal power agency:

  1. May plan, acquire, construct, reconstruct, operate, maintain, repair, extend, or improve one or more projects within or outside the state or acquire any interest in or any right to capacity of a project and may act as agent, or designate one or more of the other persons participating in a project to act as its agent, in connection with the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension, or improvement of the project.
  2. May investigate the desirability of and necessity for additional sources and supplies of electric energy and make studies, surveys, and estimates as may be necessary to determine the feasibility and cost thereof.
  3. May cooperate with other persons in the development of sources and supplies of electric energy.
  4. May apply to any public agency for consents, authorizations, or approvals required for any project within its powers and take all actions necessary to comply with the conditions thereof.
  5. May perform any act authorized by this chapter through or by means of its officers, agents, or employees or by contract with any person.
  6. May acquire, hold, use, and dispose of income, revenues, funds, and money.
  7. May acquire, own, hire, use, operate, lease as lessor or lessee, and dispose of personal property or real property, and interests in real property, and make improvements on real property.
  8. May grant the use by franchise, lease, or otherwise and make charges for the use of any property or facility owned or controlled by it.
  9. May borrow money and issue negotiable bonds, notes, or other debt instruments secured or unsecured, in accordance with section 40-33.2-05.
  10. Subject to any agreement with bondholders or noteholders, may invest money of the municipal power agency not required for immediate use, including proceeds from the sale of any bonds or notes, in such obligations, securities, and other investments as the municipal power agency shall deem prudent, notwithstanding the provisions of any other law relating to the investment of public funds.
  11. May determine the location and character of, and all other matters in connection with, any and all projects it is authorized to acquire, hold, establish, effectuate, operate, or control.
  12. May contract with any person, within or outside the state and within or outside the United States, for the construction of any project or for the sale or transmission of electric energy generated by any project, or for any interest therein or any right to capacity thereof, on such terms and for such period of time as the municipal power agency determines.
  13. May purchase, sell, exchange, or transmit electric energy within and outside the state and within or outside the United States, in such amounts as it shall determine to be necessary and appropriate to make the most effective use of its powers and to meet its responsibilities, and may enter into agreements with any person with respect to that purchase, sale, exchange, or transmission, on such terms and for such period of time as its board of directors determines.
  14. May procure insurance against any losses in connection with its property, operations, or assets in such amounts and from such insurers as it deems desirable.
  15. May contract for and accept any gifts or grants or loans of funds or property or financial or other aid in any form from any person and may comply, subject to this chapter, with the terms and conditions thereof.
  16. May mortgage, pledge, and grant a security interest in any or all of its property to secure the payment of its bonds, notes, or other obligations or contracts.
  17. Shall pay to each taxing authority within whose taxing jurisdiction its property is situated, in lieu of taxes on its property, the amounts of the taxes which would be payable if its property were owned by a private person. For this purpose, the property of a municipal power agency shall be valued in the same manner and by the same procedure as the property of private utility companies.
  18. May sue and be sued, complain, and defend in its agency name.
  19. May exercise all other powers not inconsistent with the Constitution of North Dakota or the Constitution of the United States, which powers may be reasonably necessary or appropriate for or incidental to the effectuation of its authorized purposes or to the exercise of any of the powers enumerated in this chapter, and generally may exercise in connection with its properties and affairs, and in connection with property within its control, any and all powers which might be exercised by an individual or a private corporation in connection with similar property and affairs.

Source: S.L. 1977, ch. 384, § 1.

40-33.2-05. Bonds and notes.

  1. A municipal power agency may from time to time issue its bonds or notes in such principal amounts as the municipal power agency shall deem necessary to provide sufficient funds to carry out any of its corporate purposes and powers, including the acquisition or construction of any project to be owned or leased, as lessor or lessee, by the municipal power agency, or the acquisition of any interest therein or any right to capacity thereof, the funding or refunding of the principal of, or interest or redemption premiums on, any bonds or notes issued by it whether or not such bonds or notes or interest to be funded or refunded have or have not become due, the establishment or increase of reserves to secure or to pay such bonds or notes or interest thereon, and the payment of all other costs or expenses of the municipal power agency incident to and necessary or convenient to carry out its corporate purposes and powers.
  2. Except as may be otherwise expressly provided by this chapter or by resolution of the municipal power agency, every issue of bonds or notes of the agency shall be payable out of any revenues or funds of the agency, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or funds. A municipal power agency may issue any types of bonds or notes as it may determine, including bonds or notes as to which the principal and interest are payable exclusively from the revenues from one or more projects, or from an interest therein or a right to capacity thereof, or from one or more revenue-producing contracts made by the municipal power agency with any person, or from its revenues generally. Any bonds or notes may be additionally secured by a pledge of any grant, subsidy, or contribution from any person or a pledge of any income or revenues, funds, or moneys of the municipal power agency from any source. Any pledge of revenues or other funds made by a municipal power agency pursuant to this chapter shall be valid and binding from the date the pledge is made. The revenues and other funds pledged and held or thereafter received by the agency or any fiduciary shall immediately be subject to the lien of the pledge without physical delivery or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the agency without regard to whether the parties have notice. Neither the resolution, trust agreement, or security agreement by which a pledge is created nor any financing statement, continuation statement, or other instrument relating to the pledge need be filed or recorded in any manner. Subsection 10 shall not apply to any pledge of or grant of a security interest in any revenues or funds of a municipal power agency to secure any bonds or notes issued by a municipal power agency.
  3. All bonds and notes of a municipal power agency shall be negotiable within the meaning and for all the purposes of title 41, subject only to any registration requirement.
  4. Except when the agency agreement or bylaws prescribe otherwise, bonds or notes of a municipal power agency shall be authorized by resolution of its board of directors and approved by not less than sixty percent of the qualified electors in each of the member cities voting on the question at any regular or special election and may be issued under such resolution or under a trust indenture or other security agreement, in one or more series, and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such conversion, registration, and exchange privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment at such place or places within or outside the state or within or outside the United States, be subject to such terms of redemption with or without premiums, and contain or be subject to such other terms as the resolution, trust indenture, or other security agreement may provide, and shall not be restricted by the provisions of any other law limiting the amounts, maturities, interest rates, or other terms of obligations of cities, public agencies, or private persons.
  5. Any bonds or notes may be issued and delivered, notwithstanding that one or more of the officers executing them shall have ceased to hold office at the time when the bonds or notes are actually delivered.
  6. Pending preparation of definitive bonds, a municipal power agency may issue temporary bonds which shall be exchanged for the definitive bonds.
  7. Bonds or notes of a municipal power agency may be sold at public or private sale for such price or prices and in such manner as the agency determines.
  8. Bonds or notes of a municipal power agency may be issued under the provisions of this chapter, and rents, rates, and charges may be established pursuant to section 40-33.2-07 and pledged for the security of bonds or notes and interest and redemption premiums thereon, without obtaining the consent of any department, division, commission, board, bureau, or agency of this state and without any other proceeding or the happening of any other condition or occurrence except as specifically required by this chapter.
  9. The resolution, trust indenture, or other security agreement under which any bonds or notes are issued shall constitute a contract with the holders of the bonds or notes, and may contain provisions, among others, prescribing:
    1. The terms and provisions of the bonds or notes.
    2. The mortgage or pledge of and the grant of a security interest in any property and all or any part of the revenue from any project or any revenue-producing contract made by the municipal power agency with any person to secure the payment of bonds or notes, subject to any agreements with the holders of bonds or notes which might then exist.
    3. The custody, collection, securing, investment, and payment of any revenues, assets, money, funds, or property with respect to which the municipal power agency may have any rights or interest.
    4. The rates or charges for electric energy sold by, or services rendered by, the municipal power agency, the amount to be raised by the rates or charges, and the use and disposition of any or all revenue.
    5. The creation of reserves or sinking funds and the regulation and disposition thereof.
    6. The purposes to which the proceeds from the sale of any bonds or notes then or thereafter to be issued may be applied, and the pledge of the proceeds to secure the payment of the bonds or notes.
    7. Limitations on the issuance of any additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured, and the refunding of outstanding bonds or notes.
    8. The rank or priority of any bonds or notes with respect to any lien or security.
    9. The creation of special funds or moneys to be held in trust or otherwise for operating expenses, payment, or redemption of bonds or notes, reserves, or other purposes, and the use and disposition of moneys held in these funds.
    10. The procedure by which the terms of any contract with or for the benefit of the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which consent may be given.
    11. The definition of the acts or omissions to act which shall constitute a default in the duties of the municipal power agency to holders of its bonds or notes and the rights and remedies of the holders in the event of default, including, if the municipal power agency so determines, the right to accelerate the due date of the bonds or notes or the right to appoint a receiver or receivers of the property or revenues thereof subject to the lien of the resolution, trust indenture, or other security agreement.
    12. Any other or additional agreements with or for the benefit of the holders of bonds or notes or any covenants or restrictions necessary or desirable to safeguard the interests of the holders.
    13. The custody of any of its properties or investments, the safekeeping thereof, the insurance to be carried thereon, and the use and disposition of insurance proceeds.
    14. The vesting in a trustee or trustees, within or outside the state, of such properties, rights, powers, and duties in trust as the municipal power agency may determine or the limiting or abrogating of the rights of the holders of any bonds or notes to appoint a trustee, or the limiting of the rights, powers, and duties of such trustee.
    15. The appointment of and the establishment of the duties and obligations of any paying agent or other fiduciary within or outside the state.
  10. For the security of bonds or notes issued or to be issued by a municipal power agency, the municipal power agency may, subject to approval by not less than sixty percent of the qualified electors in each of the member cities voting on the question at any regular or special election, mortgage or execute deeds of trust of the whole or any part of its property and franchises. Such mortgages or deeds of trust may by their terms include after-acquired property and shall be valid and effectual for that purpose as if such after-acquired property were owned by, and in possession of, the municipal power agency giving such mortgage or deed of trust at the time of the execution thereof. Any mortgage, or deed of trust covering the whole or any part of easements or other interests in real estate less than fee simple used in the generation or transmission of electric power, and covering fixtures annexed to the real estate in which the municipal power agency has an easement or other less than fee simple interest, may be filed in the office of the secretary of state with or as part of the financing statement covering the fixtures. Such filing of the mortgage or deed of trust shall have the same effect, and shall be notice of the rights and interest of the mortgagee or trustee in such easements and other less than fee simple interests in real estate and in such fixtures to the same extent as if such mortgage or deed of trust were duly recorded in the office of the recorder of the county or counties in which the real estate subject to such easements or less than fee simple interests is situated. Any such mortgage or deed of trust so filed shall be deemed to contain a sufficient description to give notice of the rights and interests of the mortgagee or trustee in the easements and other less than fee simple interests in the real estate used in the generation or transmission of electric power if such mortgage or deed of trust states that the securing includes rights of way of or generation or transmission systems of or lines of the municipal power agency, or all property owned by the municipal power agency. This subsection shall not apply to any real estate owned by the municipal power agency in fee simple. All filings required under title 41 to perfect a security interest against the personal property or fixtures of a municipal power agency shall be made and maintained in the office of the secretary of state.
  11. Neither the officials, the directors, nor the members of a municipal power agency nor any person executing bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof. A municipal power agency shall have power to indemnify and to purchase and maintain insurance on behalf of any director, officer, employee, or agent of the municipal power agency in connection with any action or proceeding, other than an action by or in the right of the municipal power agency, by reason of the fact that the person’s status as a director, officer, employee, or agent of the municipal power agency, or as a director, officer, employee, or agent of another entity at the municipal power agency’s request, against expenses, including attorney’s fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by the person in connection with such action or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in the best interests of the municipal power agency, and with respect to any criminal action or proceeding, had no reason to believe the conduct was unlawful. No indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of duty to the municipal power agency unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. The termination of any action or proceeding in any manner shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in the best interests of the municipal power agency, and with respect to any criminal actions or proceedings, had reasonable cause to believe that the conduct was unlawful.
  12. A municipal power agency shall have power to purchase, out of any funds available therefor, its bonds or notes, and to hold, pledge, cancel, or resell the bonds or notes, subject to and in accordance with any agreements with the holders.
  13. The principal of and interest upon any bonds or notes issued by a municipal power agency shall be payable solely from the revenues or funds pledged or available for their payment as authorized in this chapter. Each bond and note shall contain a statement that the principal and interest is payable solely from revenues or funds of the municipal power agency and that neither the state nor any political subdivision thereof, other than the municipal power agency, nor any city which is a member of the municipal power agency is obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof or of any such city is pledged to the payment of the principal or interest on the bonds or notes. This subsection does not preclude the use of tax or other revenue by a city for payment of amounts due and performance of covenants under any contract of the city as provided in subsection 3 of section 40-33.2-08.
  14. Bonds and notes of a municipal power agency issued under the provisions of this chapter and the income therefrom shall be exempt from all taxation by the state or any political subdivision thereof, excepting inheritance, estate, or transfer taxes.
  15. Any holder of bonds or notes issued by a municipal power agency under the provisions of this chapter, and the trustee under any resolution, trust indenture, or other security agreement under which any bonds or notes are issued, except to the extent that the rights herein granted may be restricted by the resolution, trust indenture, or security agreement, may bring suit upon the bonds or notes and may, either at law or in equity, by suit, action, mandamus, or other proceedings, which may include the appointment of a receiver to take control of the business and properties of the municipal power agency, protect and enforce any or all of its rights granted hereunder or under the resolution, trust indenture, or security agreement, and may enforce and compel the performance of any or all duties and obligations under this chapter and any or all covenants or obligations under the resolution, trust indenture, or security agreement to be performed by the municipal power agency or by any officer thereof, including the fixing, charging, and collecting of rents, rates, fees, and charges.

Source: S.L. 1977, ch. 384, § 1; 1979, ch. 447, §§ 6, 7; 2001, ch. 120, § 1.

40-33.2-06. Eminent domain.

Except as otherwise provided by this section, a municipal power agency may acquire all property that it deems necessary for carrying out the purposes of this chapter, whether in fee simple absolute or a lesser interest, by condemnation and the exercise of the power of eminent domain in accordance with chapter 32-15. A municipal power agency shall have no power of eminent domain with respect to any property owned by any person as part of a system, whether existing, under construction, or being planned, of facilities for the generation, transmission, or distribution of electric power.

Source: S.L. 1977, ch. 384, § 1.

40-33.2-07. Rules and rates.

A municipal power agency may make and enforce bylaws or rules which it deems necessary or desirable, and may establish, levy, and collect or may authorize, by contract, franchise, lease, or otherwise, the establishment, levying, and collection of rents, rates, and other charges for the services afforded by the municipal power agency. Rents, rates, and other charges shall be at least sufficient to meet the expenses thereof, including reasonable reserves, interest, and principal payments, including payments into one or more sinking funds for the retirement of principal. A municipal power agency may pledge its rates, rents, and other revenues, or any part thereof, as security for the repayment, with interest and redemption premiums, if any, of any moneys borrowed by it or advanced to it for any of its authorized purposes and as security for the payment of amounts due and owing by it under any contract.

Source: S.L. 1977, ch. 384, § 1.

40-33.2-08. City powers.

  1. A city may by resolution of its governing body exercise any of the powers granted in this chapter to a municipal power agency, upon fulfillment of the conditions provided in this chapter for the exercise of the power, but without complying with the terms of section 40-33.2-03 relating to incorporation, and notwithstanding any provision of any city charter or any other law denying, limiting, or placing conditions upon the exercise of the power. Nothing in this section shall be construed to repeal any charter provision or law requiring an election or other condition precedent to the establishment after January 1, 1977, of a city electric energy distribution system.
  2. Every resolution adopted in accordance with subsection 1 shall be published in the official newspaper of the city. No action may be brought and no defense may be interposed in an action brought more than thirty days after publication of the resolution, placing at issue the validity of any provision of the resolution or the power of the city to make any contract or to issue any bond, note, or other obligation authorized thereby.
  3. Nothing in this chapter authorizes any city to issue general obligation bonds for any purposes specified in this chapter without approval of its electors or performance of other procedural conditions as may be required by its charter or the laws of this state. Notwithstanding any limitation contained in section 40-05-05, a city may, by resolution of its governing body and without approval of the electors or performance of other conditions provided in any charter or other law, enter into contracts with a municipal power agency or any other person for the purchase, sale, exchange, or transmission of electric energy and other services, on the terms and for the period of time as the resolution may provide. A city may appropriate and use tax and other revenues received to make payments due or to comply with covenants to be performed under any contract made by the city pursuant to this section or when acting as a municipal power agency, or any contract made by the city with a municipal power agency, as contemplated by this chapter, subject to the provisions of its charter and the laws of this state regarding budget and payment procedures and annual tax levy limitations.
  4. Any contract made by a city pursuant to this section or when acting as a municipal power agency, or any contract made by a city with a municipal power agency, as contemplated by this chapter, may provide for the purchase of all or a portion of the capacity or output of one or more designated projects and may provide that the city contracting shall be obligated to make the payments required by the contract whether or not a project is completed, operable, or operating, and notwithstanding the suspension, interruption, interference, reduction, or curtailment of the output of a project or the power and energy contracted for. The contract may also provide that payments under the contract shall not be subject to any reduction, whether by offset or otherwise. The contract need not be conditioned upon the performance or nonperformance by any other party to the contract, or to any similar contract for the same project, under the contract or under any other instrument. The contract may also provide, in the event of default by any party to the contract or to any similar contract for the same project in the performance of its obligations thereunder, for other parties to the contract or any similar contract for the project to succeed to the rights and interests and assume the obligations of the defaulting party, pro rata or otherwise, as may be agreed upon in the contract.
  5. Any contract made by a city pursuant to this section or when acting as a municipal power agency, or any contract made by a city with a municipal power agency, as contemplated by this chapter, may provide that payments by a city under the contract shall be made solely from, and shall be secured by a pledge of and lien upon, the revenues derived by the city from the ownership and operation of the electric system of the city, and that payments shall be made as an operating expense of the electric system. The contract may provide that no obligation under the contract shall constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the city or upon any of its income, receipts, or revenues, except the revenues of its electric system, and that neither the faith and credit nor the taxing power of the city are, or shall be, pledged for the payment of any obligation under the contract. The contract may provide that the city shall be obligated to fix, charge, and collect rents, rates, fees, and charges for the commodities or services sold, furnished, or supplied through its electric system sufficient to provide revenues adequate to meet its obligations under the contract and to pay any and all other amounts payable from or constituting a charge and lien upon revenues, including amounts sufficient to pay the principal of and interest on bonds of the city heretofore or hereafter issued for purposes related to its electric system. The municipal power agency may, either at law or in equity, by suit, action, mandamus, or other proceedings, enforce and compel the performance of any or all covenants or obligations of the city under the contract to be performed by the city or any officer thereof, including the fixing, charging, and collecting of rents, rates, fees, and other charges. Any pledge of revenues made by a city pursuant to this subsection shall be valid and binding from the date the pledge is made. The revenues pledged shall immediately be subject to the lien of the pledge without physical delivery or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the city without regard to whether the parties have notice. Neither the contract, pledge agreement, or trust agreement by which a pledge is created nor any financing statement, continuation statement, or other instrument relating thereto need be filed or recorded in any manner.

Source: S.L. 1977, ch. 384, § 1; 1979, ch. 447, § 8.

40-33.2-09. Construction contracts.

A city or municipal power agency may contract for the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension, and improvement of generation and transmission facilities outside of its corporate limits or those of its members, or may contract with other public or private owners of these facilities to perform these functions, without advertising for bids, preparing final plans and specifications in advance of construction, or securing performance and payment bonds. If a payment bond is secured as provided in chapter 48-01.2, it is enforceable as therein provided, and no lien may be filed under chapter 35-27.

Source: S.L. 1977, ch. 384, § 1; 1995, ch. 443, § 12; 2007, ch. 403, § 9.

Effective Date.

The 2007 amendment of this section by section 9 of chapter 403, S.L. 2007 became effective August 1, 2007.

40-33.2-10. Authorized investments — Security for public deposits.

Notwithstanding any other law to the contrary, the state of North Dakota and all its public officers, governmental units, agencies, and instrumentalities, all banks, trust companies, savings and loan associations, investment companies, credit unions, and other persons carrying on a banking business, and all executors, administrators, guardians, trustees, and other fiduciaries, and the Bank of North Dakota, may legally invest any sinking funds, money, or other funds belonging to them or within their control in any bonds or notes issued pursuant to this chapter.

Source: S.L. 1977, ch. 384, § 1; 1983, ch. 319, § 27.

40-33.2-11. Joint exercise of powers.

Any power or powers exercised or capable of exercise by a city with respect to its electric utility system, or any project, or by a municipal power agency, may be exercised jointly with any other public agency having such power or powers. In furtherance of joint exercise of powers, a city or municipal power agency may enter into an agreement with one or more public agencies for joint or cooperative action pursuant to this section, including the creation of a separate entity to carry out the purpose of the agreement. Appropriate action, by resolution or otherwise pursuant to law of the governing bodies of the cities, municipal power agencies, or other public agencies involved in authorizing or approving the agreement, shall be necessary before any agreement may become effective. Any agreement shall specify its duration, the precise organization, composition, and nature of any separate legal or administrative entity created, together with the powers delegated, its purpose or purposes, the manner of financing the joint or cooperative undertaking, the permissible method or methods to be employed in accomplishing the termination of the agreement and for disposing of property upon termination, and any other matters deemed necessary or appropriate. In addition, the agreement may provide for the joint or cooperative undertaking through the use of a separate legal entity already in existence. No agreement pursuant to this section shall relieve any city or municipal power agency of any obligation or responsibility imposed upon it by law except to the extent of actual and timely performance of the agreement by another party to the agreement or by a legal or administrative entity created by the agreement, which performance may be offered in satisfaction of the obligation or responsibility. Agreements pursuant to this section shall not be subject to any of the provisions, limitations, or restrictions contained in chapter 54-40.

Source: S.L. 1979, ch. 447, § 1.

CHAPTER 40-33.3 Municipal Pipeline Authorities

40-33.3-01. Creation of authority — Membership.

Any two or more cities each of which is over forty thousand population may form a municipal pipeline authority by executing an agreement authorized by a resolution of the governing body of each city and approved by not less than a majority of the qualified electors voting on the question at any regular or special election in each of those cities. Any city may become a member of an existing municipal pipeline authority, without regard to population, upon executing an agreement with the authority.

Source: S.L. 1981, ch. 417, § 5.

40-33.3-02. Agreement requirements.

The agreement to form a municipal pipeline authority shall state:

  1. That the authority is created and incorporated under this chapter as a municipal corporation and a political subdivision of the state.
  2. The name of the authority, which is to include the words “municipal pipeline authority”.
  3. The names of the cities which have approved the agreement.
  4. The qualifications of member cities, any limitations upon their number, and any conditions of membership.
  5. The location of the registered office of the authority.
  6. Any other provision for regulating the business of the municipal pipeline authority or the conduct of its affairs which may be agreed upon by the member cities, consistent with this chapter.

Source: S.L. 1981, ch. 417, § 5.

40-33.3-03. Agreement filed with secretary of state — Certificate of incorporation.

The agreement and a certified copy of the resolution of the governing body of each city shall be filed for record with the secretary of state. If the agreement conforms to the requirements of section 40-33.3-02, the secretary of state shall record it and issue and record a certificate of incorporation. The certificate shall state the name of the municipal pipeline authority and the fact and date of incorporation. Upon the issuance of the certificate of incorporation, the authority shall exist as a municipal corporation and a political subdivision of the state. The certificate of incorporation is conclusive evidence of incorporation.

Source: S.L. 1981, ch. 417, § 5.

40-33.3-04. Amendment of agreement.

The agreement may be amended at any meeting of the representatives of the member cities for which notice, stating the purpose, is given to each representative of each member city and unless the agreement provides otherwise, is effective when ratified by resolutions of the governing bodies of a majority of the member cities and approved by a majority of the qualified electors voting on the question at any regular or special election in each of those member cities constituting the majority. Each amendment and the resolutions of the governing bodies approving it shall be filed for record with the secretary of state.

Source: S.L. 1981, ch. 417, § 5.

40-33.3-05. Payment of expenses of city representatives.

Each member city may appropriate money for the payment of expenses of the formation of the municipal pipeline authority and of its representatives in exercising functions as members of the authority.

Source: S.L. 1981, ch. 417, § 5.

40-33.3-06. Powers of authority.

A municipal pipeline authority is a municipal corporation and a political subdivision of the state and has all of the powers provided by this section. The representatives of the member cities, as the board of directors of the authority, shall exercise the powers of the authority unless otherwise provided by the agreement. An authority:

  1. May plan, acquire, construct, reconstruct, operate, maintain, repair, extend, or improve one or more facilities for the transmission or distribution of liquids or of natural or synthetic gas or may acquire any interest in or any right to capacity of a project and may act as agent or designate one or more of the other persons participating in a project to act as its agent, in connection with the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension, or improvement of the project.
  2. May cooperate with other persons in the development of sources and supplies of liquids or of natural or synthetic gas.
  3. May apply to any public agency for consents, authorizations, or approvals required for any project within its powers and take all actions necessary to comply with the conditions thereof.
  4. May acquire, own, hire, use, operate, lease as lessor or lessee, and dispose of property and interests in property, and make improvements to property.
  5. May acquire all property that it deems necessary for carrying out the purposes of this chapter, whether in fee simple absolute or a lesser interest, by condemnation and the exercise of the power of eminent domain in accordance with chapter 32-15. A municipal pipeline authority may not exercise the power of eminent domain with respect to any property owned by any person as part of a system, whether existing, under construction, or being planned, of facilities for the transmission or distribution of liquids or of natural or synthetic gas.
  6. May establish, levy, and collect or may authorize, by contract, franchise, lease, or otherwise, the establishment, levying, or collection of, rents, rates, and other charges for the services afforded by the authority and the use of any property or facility owned or controlled by the authority.
  7. May contract with any person for the construction of any project or for the sale, transmission, or distribution of liquids or of natural or synthetic gas by any project, or for any interest therein or any right to capacity thereof, upon such terms as the authority determines. If a payment bond is secured as provided in chapter 48-01.2, no lien may be filed under chapter 35-27.
  8. May purchase, sell, exchange, or transmit liquids or natural or synthetic gas within and outside the state and within or outside the United States, in such amounts as it determines to be necessary and appropriate to make the most effective use of its powers and to meet its responsibilities, and may enter into agreements with any person with respect to that purchase, sale, exchange, or transmission, on such terms and for such period of time as the board of directors determines.
  9. May mortgage, pledge, and grant a security interest in any or all of its property or revenues to secure the repayment of moneys loaned to it or advanced to it by the public finance authority as the result of a bond issue under chapter 6-09.4.
  10. May procure insurance against any losses in connection with its property, operations, or assets in such amounts and from such insurers as it deems desirable.
  11. May acquire, hold, use, and dispose of income, revenues, funds, and money.
  12. Subject to any agreement, may invest money not required for immediate use, including proceeds from the sale of any bonds, in such obligations, securities, and other investments as the authority deems prudent, notwithstanding the provisions of any other law relating to the investment of public funds.
  13. May contract for and accept any gifts or grants or loans of funds or property or financial or other aid in any form from any person, and may comply, subject to this chapter, with the terms and conditions thereof.
  14. Shall pay to each taxing authority within whose taxing jurisdiction its property is situated, in lieu of taxes on its property, the amount of the taxes which would be payable if its property were owned by a private person. For this purpose, the property of a municipal pipeline authority is to be valued in the same manner and by the same procedure as the property of private utility companies.
  15. May sue and be sued, complain, and defend in its name.
  16. May perform any act authorized by this chapter through or by means of its officers, agents, or employees or by contract with any person.
  17. May issue revenue bonds, in anticipation of the collection of revenues from a facility authorized by this chapter, to finance the planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension, or improvement of a facility. Such bonds shall be payable in not more than thirty years from the date of issuance. The authority shall determine the denomination, date, time, and manner of payment of the bonds.

Source: S.L. 1981, ch. 417, § 5; 1995, ch. 443, § 13; 2005, ch. 89, § 30; 2007, ch. 403, § 10.

Effective Date.

The 2007 amendment of this section by section 10 of chapter 403, S.L. 2007 became effective August 1, 2007.

The 2005 amendment of this section by section 30 of chapter 89, S.L. 2005 became effective August 1, 2005.

CHAPTER 40-34 Sewage and Garbage Disposal

40-34-01. Disposal of garbage or sewage in municipalities — Acquiring land.

Any municipality in this state, either individually or jointly by agreement, may own, acquire, construct, equip, extend, and improve, operate, and maintain, either within or without the corporate limits of the municipality, intercepting sewers, including pumping stations, a plant or plants for the treatment, purification, and disposal in a sanitary manner of the liquid and solid wastes, sewage, and night soil of the municipality, or a plant or system for the disposal of the garbage thereof, and may issue bonds therefor as herein prescribed. Any municipality may acquire by gift, grant, purchase, or condemnation necessary lands therefor, either within or without the corporate limits of the municipality and within or without the state of North Dakota. Subject to chapter 32-15, municipalities may invoke and shall have all the rights and privileges granted to public corporations under existing laws with reference to eminent domain for the purpose of acquiring land for the uses mentioned in this section. Any municipality which has outstanding bonds issued pursuant to this chapter may issue additional bonds by the procedure herein prescribed for the purpose of refunding all or any part of such outstanding bonds, whether at or prior to maturity, or for the purpose of providing moneys to be deposited in escrow for the purchase or redemption of such bonds at or prior to maturity. Bonds issued for any of the purposes referred to herein may be combined in a single issue.

Source: S.L. 1933, ch. 179, § 1; R.C. 1943, § 40-3401; S.L. 1957, ch. 285, § 1; 1957 Supp., § 40-3401; 2007, ch. 293, § 22.

Effective Date.

The 2007 amendment of this section by section 22 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

Notes to Decisions

Sewer Service Outside Municipality.

Where city is given express authority to furnish water outside of city under certain circumstances, it has, by implication, power to furnish sewer service to such areas outside of city; since furnishing of sewer service within city grants only license to users, power to furnish such service to users outside city is no greater; where license to out-of-city users was granted in interest of national defense, any action of city revoking such license after defense project had been completed would not be arbitrary or unreasonable. Satrom v. Grand Forks, 163 N.W.2d 522, 1968 N.D. LEXIS 87 (N.D. 1968).

Collateral References.

Applicability of zoning regulations to waste disposal facilities of state or local governmental entities, 59 A.L.R.3d 1244.

Law Reviews.

Solid Waste Management in North Dakota, Dean T. Massey, 49 N.D. L. Rev. 499 (1973).

40-34-01.1. Municipalities to maintain sanitary conditions on certain roads — Exception.

It shall be the duty of any incorporated city to maintain in a sanitary condition the road or highway leading to the grounds maintained by said municipality for the disposal of garbage collected in said municipality. Such road shall be kept free from refuse or garbage resulting from the transportation of the same by the municipality maintaining said grounds. Nothing in this section shall be construed to limit the right of a municipality to provide penalties applying to any persons found guilty of depositing refuse or garbage on said road or roads leading to such grounds maintained by the municipality for the disposal of refuse and garbage.

Source: S.L. 1949, ch. 273, §§ 1, 2; R.C. 1943, 1957 Supp., § 40-34011.

Note.

Villages eliminated as form of municipal government, S.L. 1967, ch. 323.

40-34-02. Methods of defraying cost of sewage or garbage disposal improvements or lease.

The total cost of a sewage or garbage disposal system, or any portion thereof, may be defrayed by the following alternative methods:

  1. Out of the general current tax revenues on hand and appropriated for that purpose.
  2. Out of the proceeds of the sale of general liability bonds issued in accordance with the procedure and subject to the conditions and limitations prescribed by chapter 21-03, as far as the same are applicable.
  3. Partly out of general current tax revenues on hand and appropriated for that purpose and the residue out of the proceeds of the sale of general liability bonds as provided in subsection 2, as the governing body of the municipality shall determine by a majority vote.
  4. Partly from moneys secured by the issuance of mortgage bonds secured by the net revenues of the improvement or system and by a mortgage or deed of trust upon the improvement or system issued by the municipality. Bonds issued under this subsection shall not exceed sixty percent of the cost of the improvement, and the remaining forty percent of such cost shall be defrayed as provided in subsection 1, 2, or 3.
  5. From moneys secured by the issuance and sale of first mortgage bonds secured by the assets and property of the improvement or system in like manner as provided in subsection 4, except that such bonds may be issued for the total cost of the improvement upon compliance with this subsection. Bonds issued under this subsection shall be secured by a pledge of the net revenues of the improvement or system to be set apart as an interest and sinking fund to pay the principal and interest of such first mortgage bonds as they mature. If the method provided in this subsection is utilized by any municipality to defray the cost of a sewage disposal system, it, by a resolution of its governing body, shall create the district, provide for and approve the plans and specifications and estimates of the cost, and adopt and publish the resolution declaring the work necessary to be done in accordance with the requirements of chapter 40-22 as far as the same may be applicable. If the owners of property liable to be imposed with the sewage disposal service charges as provided in this subsection shall file with the city auditor, within thirty days after the first publication of the resolution, a written protest against the improvement, the governing body at its next meeting after the expiration of the time for filing protests against the improvement shall hear and determine the sufficiency of the protests. After the hearing has been had, the governing body, if it finds the protests to contain the signatures of the owners of a majority of the property liable to be charged, shall not proceed further with the improvement. If the protests are found insufficient or invalid, the governing body of the municipality may cause the improvement to be made, contract therefor, and defray the cost thereof in the manner provided in this subsection.

A municipality may pay the cost of leasing any sewage systems and all related real and personal property for the collection, treatment, purification, and disposal in a sanitary manner of sewage from the state, or any agency or institution of the state under section 40-34-01.2, solely from revenues to be derived by the municipality from the ownership, sale, lease, disposition, and operation of the sewage systems; the funds or any other amounts invested by the municipality pursuant to section 21-06-07, or invested on the municipality’s behalf by the state, or any agency of the state, in conformity with policies of the industrial commission, including investment in a guaranteed investment contract and any earnings thereon, to the extent pledged therefor; and funds, if any, appropriated annually by the governing body of the municipality or received from federal or state sources.

Source: S.L. 1933, ch. 179, § 2; 1935, ch. 202, § 1; R.C. 1943, § 40-3402; S.L. 1967, ch. 323, § 189; 2003, ch. 342, § 10.

Collateral References.

Validity and construction of regulation by municipal corporation fixing sewer-use rates, 61 A.L.R.3d 1236.

40-34-03. Mortgages and mortgage bonds — Issuance over debt limit — Not general obligations — Vote required to issue — Conditions.

Municipalities may issue mortgage bonds beyond the general limits of the bonded indebtedness prescribed by law for the purpose of defraying the cost, or a part thereof, of a sewage disposal plant and system or of a garbage disposal plant in accordance with the provisions of section 40-34-02. The bonds shall not impose any general liability upon the issuing municipality but shall be paid only out of the revenues received from the service charges as provided in this chapter or from the sale of the property under foreclosure of the mortgage or deed of trust. The bonds shall be sold for not less than ninety-eight percent of par and shall bear interest at a rate or rates resulting in an average annual net interest cost of not more than twelve percent per annum on those issues which are sold at private sale. There is no interest rate ceiling on those issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. No bonds shall be issued, however, except upon the affirmative vote of three-fifths or more of the members of the governing body of the issuing municipality, and the form, recitals, maturities, rate of interest, and whether the bonds shall be payable annually or semiannually, shall be determined by the same vote. A municipality is authorized to execute and deliver any mortgage or deed of trust contemplated under this chapter.

Source: S.L. 1933, ch. 179, § 2, subss. 2, 4; 1935, ch. 202, § 1; R.C. 1943, § 40-3403; S.L. 1969, ch. 376, § 4; 1971, ch. 249, § 18; 1981, ch. 269, § 16.

Notes to Decisions

“General Liability” Defined.

Municipal bonds issued for construction of a sewage disposal plant and payable from rental for use of a sewer system were not a “general liability” of the municipality, requiring a vote of electors, though the deficiency in the rental fund, to meet the last maturing bonds, was to be made up by a tax levy. Anderson v. Fargo, 64 N.D. 178, 250 N.W. 794, 1933 N.D. LEXIS 264 (N.D. 1933).

40-34-04. Bonds may be issued by municipality — Term of bonds — Determining conditions.

Any municipality through its governing body, or any municipalities jointly through their governing bodies, may issue and sell the necessary bonds for the construction and installation of any improvement described in this chapter, including the disposal plant and such intercepting and other sewers as may be necessary to permit the effective operation of such system, and for the purchase of such real and personal property as may be necessary for use in connection with such system. Such bonds shall be payable in not more than thirty years from the date of issuance. The governing body or the respective governing bodies shall determine the denomination, the date, time, and manner of payment of such bonds.

Source: S.L. 1933, ch. 179, § 5; 1935, ch. 202, § 2; R.C. 1943, § 40-3404.

40-34-05. Supervision and control of plant — Rules and regulations governing — Charges for use of plant — Failure to pay — Collection.

The governing body of any municipality, or the respective governing bodies of municipalities which may have agreed to own and operate intercepting sewers or sewage disposal plants or garbage disposal plants jointly, may designate certain officials of the municipality or municipalities to have the supervision and control of the sewage disposal plant or plants and of the garbage disposal plant or plants, or either of such plants. The governing body or the respective governing bodies of such municipalities may make all necessary rules and regulations governing the use, operation, and control thereof, and may establish just and equitable rates and charges to be paid for the use of such disposal plant or system and such garbage disposal plant or system, or either thereof, by a person, firm, corporation, or limited liability company whose premises are served thereby. If the established service charge is not paid when due, such sum may be recovered by the municipality or by the municipalities jointly in an action at law, or such sum may be assessed against the premises served and collected and returned in the same manner as other county and municipal taxes are assessed, certified, collected, and returned.

Source: S.L. 1933, ch. 179, § 3; R.C. 1943, § 40-3405; S.L. 1993, ch. 54, § 106.

Notes to Decisions

Fees Charged to Nonuser.

Since an owner’s property is “served” by a municipality’s garbage collection service through receipt of tangible benefits of a uniform system of collection to protect the public health, fees charged a property owner who did not use a city’s collection service were not in excess of the city’s authority and did not violate the property owner’s substantive due process rights. Ennis v. City of Ray, 1999 ND 104, 595 N.W.2d 305, 1999 N.D. LEXIS 104 (N.D. 1999).

40-34-06. Sinking fund for payment of interest and principal.

If a service rate is charged to the users of an improvement made under this chapter, a sufficient portion of the moneys collected for such service shall be set aside as a sinking fund for the payment of the interest on the bonds and the principal thereof at maturity, and shall constitute a special fund which shall be used for no other purpose.

Source: S.L. 1933, ch. 179, § 4; R.C. 1943, § 40-3406.

40-34-07. First mortgage bonds are negotiable.

All first mortgage bonds issued under the provisions of this chapter may be negotiated in the same manner and with the same legal effect as negotiable instruments under title 41.

Source: S.L. 1935, ch. 202, § 2; R.C. 1943, § 40-3407; S.L. 1981, ch. 91, § 33.

Cross-References.

Uniform Commercial Code, commercial paper and investment securities, see chs. 41-03 and 41-08.

40-34-08. Tax levy to pay deficiency when bonds become due.

If the last maturing bonds secured by a first mortgage or deed of trust on an improvement, as provided in this chapter, are not paid when they become due, and if a deficiency remains, the governing body of the municipality, or the respective governing bodies of the municipalities, shall levy a tax upon all of the taxable property within the limits of the municipality or municipalities for the payment of such deficiency.

Source: S.L. 1933, ch. 179, § 6; R.C. 1943, § 40-3408.

Notes to Decisions

Deficiency.

Municipal bonds issued for construction of a sewage disposal plant and payable from rental for use of a sewer system were not a “general liability” of the municipality, requiring a vote of electors, though the deficiency in the rental fund, to meet the last maturing bonds, was to be made up by a tax levy. Anderson v. Fargo, 64 N.D. 178, 250 N.W. 794, 1933 N.D. LEXIS 264 (N.D. 1933).

40-34-09. Action maintained on failure to pay principal or interest of bonds — Court receiver — Sale of property — Redemption — Sheriff’s deed.

If a default occurs in the payment of the principal or interest of any bonds secured by a mortgage or deed of trust on the improvement and such default continues for a period of not less than six months, an action may be commenced in the district court of the county in which such improvement or some part thereof is located, by the holder or holders of not less than one-half of the outstanding past-due bonds or by the legal holder of the deed of trust, when authorized by a like number of bondholders, for the purpose of foreclosing the mortgage or deed of trust securing such bonds. In such action, the court may enter a decree providing for the management and operation of such improvement by a court receiver and for the sale of the property secured by such mortgage or trust deed and for the application of the net revenues arising from the operation of such plant upon the secured debt during the period of redemption, which shall be one year from and after the date of the sale thereof. If there is no redemption from such sale within the time herein provided, a sheriff’s deed shall issue to the holder of the certificate of sale. The procedure subsequent to the entry of a foreclosure decree shall be, as far as applicable, that provided in title 32 for the sale of real property under special execution.

Source: S.L. 1933, ch. 179, § 4; R.C. 1943, § 40-3409.

40-34-10. Franchise granted to holder of sheriff’s deed to operate property — Contents of franchise.

If after the issuance of a sheriff’s deed as provided in section 40-34-09, it shall be made to appear to the public service commission that it is in the public interest that such utility and improvement be continued in operation, such commission may grant a franchise to the owners of such utility and improvement to engage in such business and to operate such improvement and utility. Such franchise may:

  1. Authorize such owner or owners to charge each person, firm, corporation, or limited liability company owning property from which sewage or garbage is received such fee therefor as may be determined to be reasonable by such commission upon proper application and after notice to the municipality affected and a hearing upon such application;
  2. Grant to such owner or owners, under such reasonable rules, regulations, and supervision as may be established by such commission, the right and privilege to lay all intercepting and other sewers and connecting pipes in the public streets and alleys of the municipality or municipalities as may be necessary to receive and conduct the sewage to the disposal plant; and
  3. Provide for an accounting from time to time of the gross revenues of the utility or improvement and the application of the net revenues as determined by such commission upon the original secured indebtedness to the end that the holder of such franchise will use the net revenues as determined by such commission to discharge the original secured debt, together with all interest, costs, and other charges which the commission shall determine shall be paid.

Source: S.L. 1933, ch. 179, § 4; R.C. 1943, § 40-3410; S.L. 1993, ch. 54, § 106.

40-34-11. Revesting title and ownership of improvement or utility in municipality.

When, after notice to the interested parties and due hearing thereon, the public service commission shall determine that the owner or owners of the utility or improvement have been paid in full out of the net revenues arising from the operation thereof, the commission shall issue a certificate of ownership revesting the title and ownership of such utility and improvement in the municipality or municipalities.

Source: S.L. 1933, ch. 179, § 4; R.C. 1943, § 40-3411.

40-34-12. Appeal from decision of public service commission in revesting title — Conditions.

Any party in interest feeling aggrieved by the determination of the public service commission revesting the title to and ownership of the utility or improvement in the municipality or municipalities may appeal, within sixty days after the date of the issuance of such certificate of ownership or other decision by such commission, to the district court of the county in which such utility or improvement, or some part thereof, is located, for a review and trial de novo of the determination of the public service commission therein. The court, in such a case, may permit the party in possession to continue the operation of such utility and improvement upon the giving of a suitable bond, with such surety and upon such conditions as the court may fix.

Source: S.L. 1933, ch. 179, § 4; R.C. 1943, § 40-3412.

40-34-13. Residue of money remaining after payment of bonds — Disposal.

After the principal and interest on the bonds secured by a first mortgage or deed of trust on an improvement as provided in this chapter have been fully paid, the revenues of such utility and improvement set apart for the payment of such bonds may be:

  1. Used for the repair, improvement, or extension of such utility or improvement;
  2. Credited to the interest and sinking fund established for the retirement and payment of the general liability bonds; or
  3. Transferred to the general fund,

as the governing body of the municipality or the respective governing bodies of the municipalities may direct by resolution.

Source: S.L. 1933, ch. 179, § 6; R.C. 1943, § 40-3413.

40-34-14. Payment of bonds by taxation — Limitations.

Municipalities issuing bonds under this chapter, the principal or interest of which are not to be paid out of funds created from service charges as provided in this chapter, may raise such sum annually by taxation as the governing body or the respective governing bodies may deem necessary to pay the interest on such bonds and to create a sinking fund to pay the principal thereof as it falls due, but the amounts so raised shall not exceed in amount the limitations provided in chapter 21-03.

Source: S.L. 1933, ch. 179, § 5; 1935, ch. 202, § 2; R.C. 1943, § 40-3414.

40-34-15. Agreements between municipalities within and without state — Acquiring property — Erecting dams — Use of waters — Eminent domain.

If it is deemed expedient for the safety and health of the people, municipalities of this state may enter into agreements with each other, or jointly or severally with governmental agencies or municipalities outside the state, to erect and maintain intercepting sewers and sewage treatment plants, or may enter into contracts with governmental agencies or municipalities outside the state to furnish to such extraterritorial agencies or municipalities sewage disposal for such compensation and upon such terms and conditions as the parties under such agreement may stipulate. Whenever it shall be convenient or necessary as determined by a majority vote of the governing body or the respective governing bodies of such governmental agencies or municipalities, they may acquire, purchase, own, or maintain lands and personal property within or without this state and may improve the same and erect structures thereon, including dams and damsites. If the governing body of a municipality or the respective governing bodies of municipalities shall determine to do so by a resolution adopted by a majority vote thereof, such municipalities may erect dams upon streams, watercourses, or other bodies of water located within or without this state, or constituting in whole or in part the boundary waters of this state, and may alter or improve the bed, banks, or courses of such streams, watercourses, or bodies of water. In the enjoyment of such power, municipalities may purchase and hold property within and without this state and, subject to chapter 32-15, may exercise the right of eminent domain as provided by the laws of this state, and may enter into contracts and engagements with persons, firms, corporations, limited liability companies, or with municipalities or governmental agencies located without this state for like purposes.

Source: S.L. 1933, ch. 179, § 8; R.C. 1943, § 40-3415; S.L. 1993, ch. 54, § 106; 2007, ch. 293, § 23.

Effective Date.

The 2007 amendment of this section by section 23 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

40-34-16. Contractual relationship between municipalities — Approval — Operating as an independent enterprise.

Whenever governmental agencies or municipalities desire to act under the provisions of this chapter, the relationship established between them shall be fixed by contract. Such contracts may be made by governmental agencies and municipalities under the provisions of this chapter in the manner and to the extent that natural persons may make contracts for like purposes, subject only to the limitations provided by this chapter. Such contracts, before becoming operative, shall be approved by a vote of the majority of the members of each of the respective governing bodies of the municipalities or governmental agencies operating under the provisions of this chapter. If any municipality desires to act under the provisions of this chapter without establishing a relationship with another municipality or agency, it may proceed as a separate and independent enterprise.

Source: S.L. 1933, ch. 179, § 9; R.C. 1943, § 40-3416.

40-34-17. Municipality which authorized bond issue prior to March 3, 1933, may finance under this chapter.

Any municipality, which has obtained authority prior to March 3, 1933, to issue and sell bonds for the construction and installation of any of the improvements mentioned in this chapter may defray the cost of such improvements entirely out of the proceeds of the sale of such bonds, or it may defray the cost of such improvement in part out of the proceeds of the sale of such general liability bonds and in part out of the proceeds of the sale of mortgage bonds as provided in this chapter, except that the mortgage indebtedness upon such improvement, when the same is created originally, shall not exceed three-fifths of the total cost of such improvement. Bonds issued under this section which are a general liability of the municipality shall not be issued except upon a vote of the people as provided in chapter 21-03.

Source: S.L. 1933, ch. 179, § 5; 1935, ch. 202, § 2; R.C. 1943, § 40-3417.

40-34-18. Power granted by chapter considered an addition.

The power given to municipalities in this chapter shall be in addition to and not in derogation of any power existing in any municipality under any provision of the laws of this state.

Source: S.L. 1933, ch. 179, § 7; R.C. 1943, § 40-3418.

40-34-19. Agreements between municipalities and with the state or private parties — Leasing property.

Notwithstanding any other law, any municipality of the state, either individually or jointly by agreement, may enter agreements to lease to the state, or any agency or institution of the state, or to any person for such compensation and upon such terms and conditions as the parties under such agreement may stipulate, all or part of, or an undivided or other interest in, its sewage system and all related real and personal property for the collection, treatment, purification, and disposal in a sanitary manner of sewage. In addition, any municipality of the state, either individually or jointly by agreement, may enter agreements to lease from the state, or any agency or institution of the state, or from any person all or part of, or an undivided or other interest in, its sewage system and all related real and personal property for the collection, treatment, purification, and disposal in a sanitary manner of sewage for such compensation and upon such terms and conditions as the parties under such agreement may stipulate. Such agreements must be authorized by resolution of the governing body of a municipality upon a majority vote of the members of the governing body. For the purposes of this section, such agreements include any lease, sublease, purchase agreement, lease-purchase agreement, installment purchase agreement, leaseback agreement, or other contract, agreement, instrument, or arrangement pursuant to which any rights, interests, or other property are transferred to, by, or from any party to, by, or from one or more parties, and any related documents entered or to be entered, including any operating agreement, service agreement, indemnity agreement, participation agreement, loan agreement, or payment undertaking agreement. A lease obligation under this section may not exceed a term of ninety-nine years. A lease obligation under this section does not constitute an indebtedness of the municipality or a pledge of the full faith and credit or unlimited taxing resources of the municipality. Notwithstanding any other law, a municipality may solicit and accept one or more proposals for a lease transaction, including the arrangement thereof, under this section. The municipality may, by resolution of the governing body upon a majority vote of the members of the governing body, accept a proposal that it determines to be in the public interest.

Source: S.L. 2003, ch. 342, § 9.

CHAPTER 40-35 Revenue Bond Law

40-35-01. Short title.

This chapter may be cited as the revenue bond law.

Source: S.L. 1937, ch. 104, § 1; R.C. 1943, § 40-3501.

Collateral References.

Power of governmental unit to issue bonds as implying power to refund them, 1 A.L.R.2d 134.

Inclusion of several structures or units as affecting validity of submission of proposition to voters at bond election, 4 A.L.R.2d 617.

Off-street public parking facilities, 8 A.L.R.2d 373.

Validity of municipal bond issue as against owners of property annexation of which to municipality became effective after date of election at which issue was approved by voters, 10 A.L.R.2d 559.

Granting or taking of lease by municipality as within authorization of purchase or acquisition thereof, 11 A.L.R.2d 168.

Maintenance by municipal corporations of tourist or trailer camps, motor courts or motels, 22 A.L.R.2d 774, 793.

40-35-02. Undertaking defined.

The term “undertaking”, as used in this chapter, unless a different meaning clearly appears from the context, means systems, plants, works, instrumentalities, and properties used in revenue-producing undertakings, or any combination of two or more of such undertakings, which are used or useful in connection with:

  1. The obtaining of a water supply and the conservation, treatment, distribution, and disposal of water for public and private uses;
  2. The collection, treatment, and disposal of sewage, waste, and storm water;
  3. The generation, production, transmission, and distribution of natural, artificial, or mixed gas, or electric energy, for lighting, heating, and power for public and private uses;
  4. The operation of parking lots, trailer courts, and facilities for motor vehicles and house trailers;
  5. The purchase, acquisition, or establishment, maintenance, and operation of a public transportation system;
  6. The purchase, acquisition, construction, establishment, maintenance, and operation of an airport and the facilities and services in connection therewith; and
  7. The purchase, acquisition, construction, maintenance, and operation of a hospital;

together with all parts of any such undertaking and all appurtenances thereto, including lands, easements, rights in land, water rights, contract rights, franchises, approaches, dams, reservoirs, generating stations, sewage disposal plants, intercepting sewers, trunk connections, other sewer and water mains, filtration works, pumping stations, and equipment, and facilities in and upon such buildings and lands.

Source: S.L. 1937, ch. 104, § 2; R.C. 1943, § 40-3502; S.L. 1949, ch. 274, § 1; 1955, ch. 274, § 1; 1957 Supp., § 40-3502; S.L. 1961, ch. 279, § 1; 1965, ch. 290, § 1; 1971, ch. 409, § 1.

Cross-References.

Airport property, bond issue for purchase of, see § 2-02-03.

Bond issues of municipalities, see ch. 21-03.

Industrial development, provisions governing revenue bonds, see § 40-57-09.

Judgments against cities, negotiable bearer bonds authorized, see § 40-43-03.

Municipal industrial development projects, restrictions on undertakings as, see § 40-57-02.

Municipal pipeline authorities, see § 40-33.3-06.

Municipal power agencies, bond issues, see § 40-33.2-05.

Municipal steam heating authorities, city bond issues to assist in financing, see § 40-33.1-04.

Park commissioners, power to issue bonds, see § 40-49-12.

Parking authority, bond issues, see §§ 40-61-03.1, 40-61-08.

Parking facilities, issuance of bonds authorized, see § 40-60-02.

Pedestrian malls, issuance of bonds authorized, see § 40-62-01.

Power of municipalities to issue bonds, generally, see § 40-05-01.

Recreation system, bond issues authorized, see § 40-55-05.

Sewage or garbage disposal improvements, bond issues, see §§ 40-34-02 to 40-34-04.

Special assessment warrants, funding and refunding, see ch. 40-27.

Transportation system, revenue bonds, see §§ 40-33-26 to 40-33-29.

Urban renewal, issuance of bonds, see § 40-58-10.

Utilities, issuance of bonds, see §§ 40-33-04, 40-33-07.

Water treatment plants, issuance of revenue bonds, see §§ 40-33-17 to 40-33-21.

40-35-03. Powers of municipality.

Any municipality, in addition to the powers prescribed elsewhere by the laws of this state, shall have the power to:

  1. Acquire by gift, purchase, or, subject to chapter 32-15, the exercise of the right of eminent domain, property required to construct, reconstruct, improve, better, or extend any undertaking, whether wholly within or wholly without the municipality, or partially within and partially without the municipality, and easements, rights in lands, and water rights in connection therewith.
  2. Operate and maintain any undertaking for its own use and for the use of public and private consumers and users within and without the territorial boundaries of the municipality.
  3. Prescribe, revise, and collect rates, fees, tolls, or charges for the services, facilities, or commodities furnished by such undertaking, and in anticipation of the collection of the revenues of such undertaking, issue revenue bonds to finance in whole or in part the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of any undertaking.
  4. Pledge to the punctual payment of said bonds and the interest thereon all or any part of the revenues of such undertaking, including the revenues of improvements, betterments, or extensions thereof which may be constructed or acquired subsequent to the issuance of such bonds as well as the revenues of existing systems, plants, works, instrumentalities, and properties of the undertaking so improved, bettered, or extended, or of any part of such undertaking.
  5. Make all contracts, execute all instruments, and do all things necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties or in order to secure the payment of its bonds, but no encumbrance, mortgage, or other pledge of property of the municipality shall be created by any such contract or instrument.
  6. Enter into and perform contracts, whether long-term or short-term, with any industrial establishment for the provision and operation by the municipality of sewerage facilities, when the governing body of the municipality determines such action to be in the public interest and necessary for the protection of the public health, in order to abate or reduce the pollution of waters caused by discharges of industrial wastes by the industrial establishment, and for the payment periodically by the industrial establishment to the municipality of amounts at least sufficient, in the determination of such governing body, to compensate the municipality for the cost of providing, including payment of principal and interest charges, if any, and of operating and maintaining the sewerage facilities serving such industrial establishment.
  7. Enter into and perform such contracts and agreement with other municipalities, political subdivisions, and state institutions, as the respective governing bodies of the same may deem proper and feasible for or concerning the planning, construction, lease, or other acquisition and the financing of sewerage facilities and the maintenance and operation thereof. Any such municipalities so contracting with each other may also provide in any contract or agreement for a board, commission, or such other body as their governing bodies may deem proper for the supervision and general management of the sewerage facilities and for the operation thereof, and may prescribe its powers and duties and fix the compensation of the members thereof.
  8. Accept from any authorized agency of the federal government loans or grants for the planning, construction, acquisition, lease, or other provision of any undertaking, and to enter into agreements with such agency respecting such loan or grants.

No property of the municipality shall be liable to be forfeited or taken in payment of any bonds issued under this chapter, and no debt on the general credit of the municipality shall be incurred in any manner for any purpose under any provision of this chapter.

Source: S.L. 1937, ch. 104, § 3; R.C. 1943, § 40-3503; S.L. 1949, ch. 275, § 1; 1957 Supp., § 40-3503; 2007, ch. 293, § 24.

Effective Date.

The 2007 amendment of this section by section 24 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

40-35-04. Resolution authorizing undertaking and the issuance of revenue bonds.

The acquisition, construction, reconstruction, improvement, betterment, or extension of any undertaking, and the issuance of bonds in anticipation of the collection of the revenues of such undertaking to provide funds to pay the cost thereof, may be authorized by an ordinance or resolution of the governing body adopted at any meeting thereof, after appropriate notice, by the affirmative vote of a majority of its members. The amount of such bonds so authorized, however, shall not exceed the amount authorized by the electors of the municipality as provided in this chapter. Unless otherwise provided in the ordinance or resolution, such ordinance or resolution shall take effect immediately and need not be laid over, published, or posted.

Source: S.L. 1937, ch. 104, § 4; R.C. 1943, § 40-3504; S.L. 1977, ch. 216, § 3.

Notes to Decisions

Constitutional Debt Limitation.

A city’s contract to purchase a public utility payable only from the utility’s net revenues does not create an “indebtedness” within the constitutional limitation. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-35-05. Cost of undertaking — How determined.

In determining the cost of an undertaking, the governing body may include all cost and estimated cost of the issuance of the revenue bonds, all engineering, inspection, fiscal, and legal expenses, any bond reserves, and the interest which it is estimated will accrue during the construction period and for six months thereafter on money borrowed or which it is estimated will be borrowed pursuant to this chapter.

Source: S.L. 1937, ch. 104, § 4; R.C. 1943, § 40-3505; S.L. 1977, ch. 216, § 4.

Notes to Decisions

Electrical Distribution System.

Where city’s undertaking was limited to erection and operation of electrical distribution system in municipality and did not involve generation, production or transmission of electrical energy, expenditures related thereto were not part of cost of undertaking within purview of this section; N.D.C.C. § 40-05-05 governed such expenditures. Anderson v. Hankinson, 157 N.W.2d 833, 1968 N.D. LEXIS 105 (N.D. 1968).

40-35-06. Issuance of bonds for electric light and power plant — When approval of electors required.

No bonds shall be issued by any municipality for the purpose of financing the construction of a new electric light and power plant or distribution system, for the purchase or acquisition of an existing electric light and power plant or distribution system, or for the construction of extensions to any electric light and power plant or distribution system in excess of twenty percent of the book value thereof as shown by its books, unless the question of issuing such bonds has been submitted to a vote of the qualified electors of the municipality as provided in section 40-35-07 and has been approved by a majority of such electors voting on such question.

Source: S.L. 1937, ch. 104, § 4; R.C. 1943, § 40-3506.

Collateral References.

Rescission of vote authorizing school district or other municipal bond issue, expenditure, or tax, 68 A.L.R.2d 1041.

Absentee voters’ laws as applied to municipal bond elections, 97 A.L.R.2d 257.

40-35-07. Form of ballot — When question submitted.

The question provided for in section 40-35-06 shall be submitted to the electors on a ballot separate from all other ballots and in substantially the following form:

Shall the (name of municipality) issue revenue bonds in the amount of not to exceed $ (maximum amount of bonds) for the purpose of (purpose of issue)? Yes No

Click to view

Such question may be submitted to the qualified electors at any general or municipal election or at any special election called, held, and conducted upon the notice and in the manner specified by law for the election of the governing body of the municipality.

Source: S.L. 1937, ch. 104, § 4; R.C. 1943, § 40-3507.

Collateral References.

Notice: inclusion or exclusion of first and last days in computing time for giving notice of bond issue election, which must be given a certain number of days before a known future date, 98 A.L.R.2d 1331.

40-35-08. Provisions governing revenue bonds.

The resolution or ordinance authorizing the issuance of revenue bonds under this chapter, or ordinances or resolutions adopted subsequent to the adoption of the original resolution or ordinance, shall prescribe:

  1. The rate or rates of interest, payable semiannually.
  2. Whether the bonds shall be in one or more series.
  3. The date or dates which such bonds shall bear.
  4. The time or times, not exceeding forty years from their respective dates, when such bonds shall mature.
  5. The medium in which such bonds shall be payable.
  6. The place or places where such bonds shall be payable.
  7. Whether or not such bonds shall carry registration privileges, and what such privileges, if any, shall be.
  8. The terms of redemption, if any, to which such bonds shall be subject.
  9. The manner in which such bonds shall be executed.
  10. The terms, covenants, and conditions which such bonds shall contain.
  11. The form, either coupon or registered, in which such bonds shall be issued.

Source: S.L. 1937, ch. 104, § 5; R.C. 1943, § 40-3508; S.L. 1969, ch. 376, § 5; 1971, ch. 249, § 19; 1981, ch. 269, § 17.

Cross-References.

Validation of municipal securities, see ch. 1-07.

40-35-09. Sale of revenue bonds — When private sale authorized — Public sale and notice thereof.

Revenue bonds shall be sold at not less than ninety-eight percent of par. The bonds may be sold at private sale without notice or at public sale after notice of the sale has been published once at least five days prior to the sale in a newspaper circulating in the municipality. Bonds sold at private sale shall bear interest at a rate or rates and be sold at a price resulting in an average net interest cost not exceeding twelve percent per annum. There is no interest rate ceiling on issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. As to any series or issue of bonds for which a notice of sale was published but for which no bids were received or all bids received were rejected, the governing body may, without readvertising the bonds for sale, negotiate the sale of all of the bonds to any person upon terms complying with those specified in the notice of sale theretofore published and, if bids were rejected, more favorable to the municipality than those specified in the rejected bid.

Source: S.L. 1937, ch. 104, § 5; R.C. 1943, § 40-3509; S.L. 1969, ch. 376, § 6; 1971, ch. 249, § 20; 1971, ch. 409, § 2; 1981, ch. 269, § 18.

40-35-10. Bonds and receipts or certificates issued pending preparation of bonds — Negotiability.

Pending the preparation of the definitive bonds, interim receipts or certificates, in the form and with the provisions the governing body may determine, may be issued to the purchaser or purchasers of bonds sold pursuant to this chapter. Said bonds and interim receipts or certificates shall be negotiable within the meaning of and for all the purposes specified in title 41.

Source: S.L. 1937, ch. 104, § 5; R.C. 1943, § 40-3510; S.L. 1981, ch. 91, § 34.

Cross-References.

Uniform Commercial Code, investment securities, see ch. 41-08.

40-35-11. Validity of bonds.

Revenue bonds bearing the signatures of the appropriate officers who are in office on the date of the signing thereof shall be valid and binding obligations notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon shall have ceased to be officers of the municipality issuing the same. The validity of said bonds shall not be dependent on nor be affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the undertaking for which said bonds are issued. The ordinance or resolution authorizing said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, and such recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Source: S.L. 1937, ch. 104, § 6; R.C. 1943, § 40-3511.

40-35-12. Bonds exempt from taxation — Exception.

Bonds issued under the provisions of this chapter and the income therefrom shall be exempt from any taxes, except inheritance, estate, and transfer taxes.

Source: S.L. 1937, ch. 104, § 7; R.C. 1943, § 40-3512.

40-35-13. Covenants that may be inserted in ordinance or resolution authorizing bonds.

Any ordinance or resolution authorizing the issuance of bonds under this chapter to finance, in whole or in part, the acquisition, construction, reconstruction, improvement, betterment, or extension of an undertaking may contain covenants, notwithstanding that such covenants may limit the exercise of powers conferred by this chapter, as to:

  1. The rates, fees, tolls, or charges to be charged for the services, facilities, and commodities of said undertaking.
  2. The use and disposition of the revenues of said undertaking.
  3. The creation and maintenance of reserves or sinking funds and the regulation, use, and disposition thereof.
  4. The purpose or purposes to which the proceeds of the sale of said bonds may be applied and the use and disposition of such proceeds.
  5. The events of default and the rights and liabilities arising thereon and the terms and conditions upon which the holders of bonds issued under this chapter may bring any suit or action on said bonds or on the coupons thereof.
  6. The payment by the municipality to the account of said undertaking of a fair and reasonable amount for the services, facilities, or commodities furnished said municipality or any of its departments by said undertaking.
  7. The issuance of other or additional bonds or instruments payable from or constituting a charge against the revenue of such undertaking.
  8. The insurance to be carried upon the undertaking and the use and disposition of insurance moneys.
  9. The keeping of books of account and the inspection and audit thereof.
  10. The terms and conditions upon which any or all of the bonds shall become or may be declared due before maturity and the terms and conditions upon which such declaration and its consequences may be waived.
  11. The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations.
  12. The vesting in a trustee or trustees of the right to enforce any covenants made to secure, to pay, or in relation to, the bonds, the powers and duties of such trustee or trustees, and the limitation of liabilities thereof.
  13. The terms and conditions upon which the holders of the bonds, or the holders of any proportion or percentage of them, may enforce any covenants made under this chapter or any duties imposed thereby.
  14. A procedure by which the terms of any ordinance or resolution authorizing bonds or of any other contract with bondholders, including, but not limited to, an indenture of trust or similar instrument, may be amended or abrogated, and the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given.
  15. The subordination of the security of any bonds issued hereunder and the payment of principal and interest thereon, to the extent deemed feasible and desirable by the governing body, to other bonds or obligations of the municipality issued to finance the undertaking or that may be outstanding when the bonds thus subordinated are issued and delivered.

Nothing in this section or in any other section of this chapter, however, shall authorize any municipality to do anything in any manner or for any purpose which would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument, which would constitute a bond or debt within the meaning of any provision, limitation, or restriction of the Constitution of North Dakota relating to the creation or incurring of a debt or indebtedness or the issuance of an instrument constituting a bond or a debt.

Source: S.L. 1937, ch. 104, § 8; R.C. 1943, § 40-3513; S.L. 1949, ch. 275, § 2; 1957 Supp., § 40-3513.

Notes to Decisions

Terms of Bonds.

The provisions of the revenue bond law pursuant to which bonds are to be issued are to be considered terms of the bonds as much as though such provisions were stated on the face thereof. Stark v. Jamestown, 76 N.D. 422, 37 N.W.2d 516, 1949 N.D. LEXIS 65 (N.D. 1949).

40-35-14. Liability of municipality for bonds — Taxing power prohibited — Bond not a lien.

Revenue bonds issued under this chapter shall not be payable from nor charged upon any funds other than the revenue pledged to the payment thereof, nor shall the municipality issuing the same be subject to any pecuniary liability thereon. No holder or holders of any such bonds shall ever have the right to compel any exercise of the taxing power of the municipality to pay any such bonds or the interest thereon, nor to enforce payment thereof against any property of the municipality. Such bonds shall not constitute a charge, lien, nor encumbrance, legal or equitable, upon any property of the municipality. Each bond issued under this chapter shall recite in substance that the bond, including interest thereon, is payable solely from the revenue pledged to the payment thereof, and that the bond does not constitute a debt of the municipality within the meaning of any constitutional or statutory limitation.

Source: S.L. 1937, ch. 104, § 9; R.C. 1943, § 40-3514.

Notes to Decisions

Constitutional Debt Limitation.

A city which owns and operates a utility does not create an indebtedness within the meaning of the constitutional debt limitation by pledging in payment of revenue bonds issued and sold to finance an extension or improvement of such utility plant, the revenue derived from the entire plant, and not merely from the addition or improvement. Stark v. Jamestown, 76 N.D. 422, 37 N.W.2d 516, 1949 N.D. LEXIS 65 (N.D. 1949).

40-35-15. Remedies of bondholders in general.

Subject to any contractual limitations binding upon the holders of any issue of revenue bonds, or a trustee therefor, including the restriction of the exercise of any remedy to a specified proportion or percentage of such holders, any holder of bonds, or any trustee therefor, for the equal benefit and protection of all bondholders similarly situated, may:

  1. By mandamus or other suit, action, or proceeding at law or in equity, enforce such person’s rights against the municipality and its governing body and any of its officers, agents, and employees and may require and compel such municipality or such governing body or any such officers, agents, or employees to perform and carry out its and their duties and obligations under this chapter and its and their covenants and agreements with bondholders.
  2. By action or suit in equity, require the municipality and the governing body thereof to account as if they were the trustees of an express trust.
  3. By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders.
  4. Bring suit upon the bonds.

No right or remedy conferred by this chapter upon any bondholder, or upon any trustee therefor, is intended to be exclusive of any other right or remedy, but each such right or remedy is cumulative and in addition to every other right or remedy and may be exercised without exhausting and without regard to any other remedy conferred by this chapter or by any other law of this state.

Source: S.L. 1937, ch. 104, § 11; R.C. 1943, § 40-3515.

40-35-16. Receiver of undertaking — When appointed.

If the municipality shall default in the payment of the principal or interest on any of the revenue bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or if the municipality or the governing body, or officers, agents, or employees of the municipality shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of the bonds, any bondholder or bondholders, or the trustee therefor, may apply to the district court of the county in which the undertaking is located for the appointment of a receiver of the undertaking whether or not all of the bonds have been declared due and payable and whether or not such holder, or such trustee therefor, is seeking or has sought to enforce any other right or to exercise any other remedy in connection with such bonds. Upon such application, the court may appoint a receiver of the undertaking. If the application is made by the holders of twenty-five percent in principal amount of such bonds then outstanding, or by any trustee for holders of such bonds in such principal amount, the court shall appoint a receiver of the undertaking.

Source: S.L. 1937, ch. 104, § 10, subs. 1; R.C. 1943, § 40-3516.

40-35-17. Powers and duties of receiver of undertaking.

A receiver appointed under the provisions of section 40-35-16, directly or by the receiver’s agents and attorneys, shall enter into and upon and take possession of the undertaking and each and every part thereof immediately and may exclude therefrom the municipality, its governing body, officers, agents, and employees, and all persons claiming under them. The receiver shall have, hold, use, operate, manage, and control the undertaking, and each and every part thereof, in the name of the municipality or otherwise as the receiver may deem best. The receiver shall exercise all the rights and powers of the municipality with respect to the undertaking as the municipality itself might do. The receiver shall maintain the undertaking and restore and insure it and keep the same insured, and from time to time, the receiver shall make all repairs which the receiver deems necessary, proper, or expedient. The receiver shall establish, levy, maintain, and collect such fees, tolls, rentals, and other charges in connection with the undertaking as the receiver may deem necessary, proper, and reasonable, and the receiver shall collect and receive all revenues and shall deposit the same in a separate account and apply such revenues in such manner as the court shall direct.

Source: S.L. 1937, ch. 104, § 10, subs. 2; R.C. 1943, § 40-3517.

40-35-18. Court may direct receiver to surrender possession of undertaking.

After all that is due upon the revenue bonds, including the interest thereon, and upon any other notes, bonds, or other obligations, including the interest thereon, which are a charge, lien, or encumbrance on the revenues of the undertaking under any of the terms of any covenants or agreements with bondholders, shall have been paid or deposited as provided therein, and all defaults shall have been cured and made good, the court, in its discretion and after such notice and hearing as it deems reasonable and proper, may direct the receiver to surrender the possession of the undertaking to the municipality. The holders of the bonds shall have the same right to secure the appointment of a receiver upon any subsequent default as is provided in this chapter in the case of an original default.

Source: S.L. 1937, ch. 104, § 10, subs. 3; R.C. 1943, § 40-3518.

40-35-19. Receiver subject to jurisdiction of court — Jurisdiction of court.

In the exercise of the powers conferred upon a receiver by this chapter, a receiver shall act under the direction and supervision of the court by which the receiver was appointed and shall be subject at all times to the orders and decrees of such court and may be removed by it. Nothing contained in this chapter shall limit or restrict the jurisdiction of such court to enter such other and further orders and decrees as it may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth in this chapter.

Source: S.L. 1937, ch. 104, § 10, subs. 4; R.C. 1943, § 40-3519.

40-35-20. Construction.

The powers conferred by this chapter shall be in addition and supplemental to and not in substitution for, and the limitations imposed by this chapter shall not affect the powers conferred by, any other law. Revenue bonds may be issued under this chapter without regard to any other provisions of the laws of this state. The undertaking may be acquired, purchased, constructed, reconstructed, improved, bettered, and extended, and bonds may be issued under this chapter for said purposes, notwithstanding that any other law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment, and extension of a like undertaking or for the issuance of bonds for like purposes, and without regard to the requirements, restrictions, debt, or other limitations or other provisions contained in any other law, including, but not limited to, any requirement for any restriction or limitation on the incurring of indebtedness or the issuance of bonds. Insofar as the provisions of this chapter are inconsistent with any other law of this state, the provisions of this chapter shall be controlling with reference to the issuance of revenue bonds.

Source: S.L. 1937, ch. 104, § 12; R.C. 1943, § 40-3520.

CHAPTER 40-36 Revenue Bond Refinancing Law

40-36-01. Short title.

This chapter may be cited as the revenue bond refinancing law.

Source: S.L. 1937, ch. 105, § 1; R.C. 1943, § 40-3601.

40-36-02. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Enterprise” means any work, undertaking, or project which the municipality is authorized to construct and from which the municipality has derived or may derive revenues and for the refinancing of which refunding bonds are issued under this chapter. “Enterprise” includes all improvements, betterments, extensions, and replacements of such work, undertaking, or project, and all appurtenances, facilities, lands, rights in land, water rights, franchises, and structures in connection therewith or incidental thereto.
  2. “Federal agency” includes the United States, the president of the United States, or any agency, instrumentality, or corporation of the United States which has been or may be designated or created by or pursuant to any act or acts or joint resolutions of the Congress of the United States or which may be owned or controlled, directly or indirectly, by the United States.
  3. “Holder of bonds” or “bondholder” or any similar term means any person who shall be the bearer of any outstanding refunding bond or refunding bonds registered to bearer or not registered, or the registered owner of any such outstanding bond or bonds which at the time shall be registered other than to bearer.
  4. “Law” means any general statute of this state.
  5. “Refinancing” means funding, refunding, paying, or discharging, by means of refunding bonds or the proceeds from the sale thereof, all or any part of any notes, bonds, or other obligations issued to finance or to aid in financing the acquisition, construction, or improvement of an enterprise and payable solely from all or any part of the revenue thereof and including interest thereon in arrears or about to become due whether or not such interest is represented by coupons or interest certificates.
  6. “Refunding bonds” means notes, bonds, certificates, or other obligations of a municipality issued pursuant to this chapter, or pursuant to any other law as supplemented by, or in conjunction with, this chapter.
  7. “Revenues” means all fees, tolls, rates, rentals, and charges levied and collected in connection with, and all other income and receipts of whatever kind or character derived by the municipality from, the operation of any enterprise or arising from any enterprise.
  8. Words importing the singular number shall include the plural number and vice versa in each case, and words importing persons shall include firms, corporations, and limited liability companies.

Source: S.L. 1937, ch. 105, § 2; R.C. 1943, § 40-3602; S.L. 1993, ch. 54, § 106.

40-36-03. Municipalities may refinance enterprise — Borrow money — Issue refunding bonds.

Any municipality may refinance any enterprise, and for such purpose it may borrow money and issue refunding bonds from time to time.

Source: S.L. 1937, ch. 105, § 3; R.C. 1943, § 40-3603.

40-36-04. Refunding bonds authorized by resolution — Adoption — Taking effect.

Refunding bonds shall be authorized by resolution of the governing body of a municipality. Such resolution may be adopted at a regular or special meeting, and at the same meeting at which it is introduced, by the affirmative vote of a majority of all of the members of the governing body, and shall take effect immediately upon the adoption thereof. No other proceedings or procedure of any character whatever shall be required for the issuance of refunding bonds by the municipality.

Source: S.L. 1937, ch. 105, § 4; R.C. 1943, § 40-3604.

40-36-05. Provisions governing issuance of refunding bonds.

The resolution of the governing body authorizing the issuance of refunding bonds may provide:

  1. Whether the bonds shall be in one or more series;
  2. The date or dates which such bonds shall bear;
  3. The time or times, not exceeding the period of usefulness of the enterprise as determined by the governing body in its discretion but not exceeding in any event forty years from their respective dates, when such bonds shall mature;
  4. The rate or rates of interest which such bonds shall bear;
  5. The denomination or denominations in which such bonds shall be issued;
  6. The form, either coupon or registered, in which such bonds shall be issued;
  7. Whether or not such bonds shall carry registration or conversion privileges, and what such privileges, if any, shall be;
  8. The manner in which such bonds shall be executed;
  9. The medium in which such bonds shall be payable;
  10. The place or places where such bonds shall be payable;
  11. The terms of redemption, if any, to which such bonds shall be subject, and the premium, if any, which will be paid in case of a redemption;
  12. That such bonds may be declared or may become due before the maturity date thereof;
  13. For the replacement of mutilated, destroyed, stolen, or lost bonds;
  14. For the authentication of such bonds and the conditions, if any, to be complied with before authentication thereof; and
  15. Such other terms and covenants, if any, which such bonds shall contain.

Notwithstanding the form or tenor of such bonds, and in the absence of an express recital on the face thereof that the bond is non-negotiable, all refunding bonds shall be treated as negotiable instruments for all purposes.

Source: S.L. 1937, ch. 105, § 5; R.C. 1943, § 40-3605; S.L. 1977, ch. 382, § 2.

40-36-06. Validity of refunding bonds.

Refunding bonds bearing the signatures of officers of the municipality in office on the date of the signing thereof shall be valid and binding obligations of the municipality for all purposes, notwithstanding that before the delivery of the bonds any or all of the persons whose signatures appear thereon shall have ceased to be officers of the municipality, the same as if such persons had continued to be officers of the municipality until after the delivery of the bonds. A resolution authorizing the issuance of refunding bonds may provide that any such bonds may contain a recital that such bonds are issued pursuant to this chapter, and any refunding bonds containing such recital under authority of any such resolution shall be deemed conclusively to be valid and to have been issued in conformity with the provisions of this chapter.

Source: S.L. 1937, ch. 105, § 6; R.C. 1943, § 40-3606.

40-36-07. Refunding bonds exempt from taxation — Exception.

Refunding bonds issued under the provisions of this chapter and the income therefrom shall be exempt from any taxes, except inheritance, estate, and transfer taxes.

Source: S.L. 1937, ch. 105, § 10; R.C. 1943, § 40-3607.

40-36-08. Provisions that may be inserted in resolution authorizing issuance of refunding bonds.

The governing body of any municipality, in addition to the other powers conferred by this chapter, may insert in any resolution authorizing the issuance of refunding bonds, such resolution to be a part of the contract with the holders of the refunding bonds, provisions relating to:

  1. Limitations on the purpose to which the proceeds of the sale of any notes, bonds, or other obligations thereafter to be issued to finance the improving of the enterprise may be applied;
  2. Limitations on the issuance and on the lien of other notes, bonds, or other obligations thereafter to be issued and secured by or made payable from the revenues of such enterprise to finance the improving of the enterprise;
  3. Limitations on the right of the municipality or its governing body to restrict and regulate the use of the enterprise;
  4. The amount and kind of insurance to be maintained on the enterprise and the use and disposition of insurance moneys;
  5. The pledging all or any part of the revenues of the enterprise to which its right then exists or the right to which thereafter may come into existence;
  6. The covenanting against pledging all or any part of the revenues of the enterprise to which its right then exists or the right to which thereafter may come into existence;
  7. Events of default and the terms and conditions upon which any or all of the refunding bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;
  8. The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations;
  9. The vesting in a trustee or trustees of the right to enforce any covenants made to secure, to pay, or in relation to the refunding bonds, the powers and duties of such trustee or trustees, and the limitation of liabilities thereof;
  10. The terms and conditions upon which the holders of the refunding bonds, or of any proportion or percentage of them, may enforce any covenants made under this chapter or any duties imposed thereby;
  11. A procedure by which the terms of any resolution authorizing refunding bonds or of any other contract with bondholders, including an indenture of trust or similar instrument, may be amended or abrogated and the amount of refunding bonds the holders of which must consent thereto, and the manner in which such consent may be given;
  12. The execution of all instruments necessary or convenient in the exercise of the powers granted by this chapter or in the performance of the duties of the municipality and of the officers, agents, and employees thereof;
  13. The refraining from pledging or in any manner whatever claiming or taking the benefit or advantage of any stay or extension law, whenever enacted and whenever the same may be in force, which may affect the duties or covenants of the municipality in relation to the refunding bonds, the performance of such covenants or duties, or the lien of such refunding bonds;
  14. The purchase out of any funds available therefor, including the proceeds of the sale of refunding bonds, of any outstanding notes, bonds, or obligations, including refunding bonds, and the price or prices at which and the manner in which such purchases may be made; and
  15. Such other acts and things as may be necessary or convenient or desirable to secure the refunding bonds or which may tend to make such bonds more marketable.

Nothing in this section shall authorize any municipality to make any covenant, to perform any act, or to do anything which shall require the expenditure by the municipality in any manner or for any purpose of any funds other than revenues received or receivable from the enterprise.

Source: S.L. 1937, ch. 105, § 13; R.C. 1943, § 40-3608.

DECISIONS UNDER PRIOR LAW

Defense of Illegal Issuance.

Recital in bonds that their issue was authorized by act of the Legislative Assembly did not estop school district from raising defense that such bonds were illegally issued, even as against an innocent purchaser. State v. School Dist., 18 N.D. 616, 120 N.W. 555, 1909 N.D. LEXIS 17 (N.D. 1909).

40-36-09. Refunding bonds secured by a lien upon revenues of enterprise — Pledging fixed amount as security.

Refunding bonds shall be special obligations of the issuing municipality and shall be payable from, and secured by a lien upon, the revenues of the enterprise as shall be described more fully in the resolution of the governing body authorizing the issuance of the refunding bonds. Having due regard to the cost of operation and maintenance of the enterprise and the amount or proportion, if any, of the revenues of the enterprise previously pledged, a municipality, by a resolution of its governing body, may pledge for the security of the refunding bonds a fixed amount without regard to any fixed proportion of the gross revenues of the enterprise.

Source: S.L. 1937, ch. 105, § 8, subs. 1; R.C. 1943, § 40-3609.

40-36-10. Additional security for refunding bonds — Contents of bonds with additional security.

As additional security for any issue of refunding bonds, or any part thereof, issued under this chapter, any municipality, by a resolution of its governing body, may confer upon the holders of the refunding bonds all rights, powers, and remedies which said holders would be entitled to if they were the owners and had possession of the notes, bonds, or other obligations for the refinancing of which such refunding bonds shall have been issued, including the preservation of the lien of such notes, bonds, or other obligations without extinguishment, impairment, or diminution thereof. If any municipality exercises the power conferred by this section, each refunding bond shall contain a recital to the effect that the holder thereof has been granted the additional security provided by this section, and each note, bond, certificate, or other obligation of the municipality to be refinanced by such refunding bonds shall be kept intact and shall not be canceled or destroyed until the refunding bonds and the interest thereon finally have been paid and discharged, but each such instrument shall be stamped to show that such note, bond, certificate, or other obligation has been refunded pursuant to this chapter.

Source: S.L. 1937, ch. 105, § 8, subs. 2; R.C. 1943, § 40-3610.

40-36-11. No priority in refunding bonds of same issue.

All refunding bonds of the same issue shall be secured equally and ratably, without priority by reason of number, date of bonds, date of sale, date of execution, or date of delivery, by a lien upon the revenues of the enterprise in accordance with the provisions of this chapter and the resolution authorizing the issuance of such refunding bonds.

Source: S.L. 1937, ch. 105, § 8, subs. 3; R.C. 1943, § 40-3611.

40-36-12. Refunding bonds not a debt of municipality — Refunding bond to recite fund from which payable.

Refunding bonds and the interest thereon shall not be a debt of the municipality nor a charge, lien, or encumbrance, legal or equitable, upon any property of the municipality or upon any income, receipts, or revenues of the municipality other than such of the revenues of the enterprise as shall have been pledged to the payment thereof. Every refunding bond shall recite in substance that the bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof and that the municipality is under no obligation to pay the same except from said revenues.

Source: S.L. 1937, ch. 105, § 9, subs. 2; R.C. 1943, § 40-3612.

40-36-13. Exchange or sale of refunding bonds.

Refunding bonds may be sold or exchanged in installments at different times, or an entire issue or series may be sold or exchanged at one time. Any issue or series of refunding bonds may be exchanged in part or sold in part in installments at different times or at one time, and such bonds may be sold or exchanged at any time on, before, or after the maturity of any of the outstanding notes, bonds, certificates, or other obligations to be refinanced thereby. If the governing body shall determine to:

  1. Exchange any refunding bonds, such bonds may be exchanged privately for, and in payment and discharge of, any of the outstanding notes, bonds, or other obligations of the municipality issued to finance or to aid in financing the acquisition, construction, improvement, or refinancing of an enterprise. The refunding bonds may be exchanged for a like or a greater principal amount of such notes, bonds, or other obligations of the municipality. The principal amount of the refunding bonds, however, may exceed the principal amount of outstanding notes, bonds, or other obligations for which they are exchanged only to the extent necessary or advisable, in the discretion of the governing body, to fund interest in arrears or about to become due. The holder or holders of such outstanding notes, bonds, or other obligations need not pay accrued interest on the refunding bonds to be delivered in exchange therefor if, and to the same extent that, interest is due or accrued and unpaid on such outstanding notes, bonds, or other obligations to be surrendered.
  2. Sell any refunding bonds, such bonds shall be sold at not less than ninety-eight percent of par at public or private sale in such manner and upon such terms as the governing body shall deem for the best interests of the municipality.
  3. Exchange or sell any refunding bonds more than six months in advance of the date on which the bonds being refunded mature or are redeemable in accordance with their terms to reduce the debt service costs, extend or adjust maturities in relation to the revenues pledged for payment of the bonds, permit the more advantageous sale of additional bonds, or any other purpose deemed necessary or desirable by the governing body, then the proceeds of the refunding bonds, including any premium and accrued interest, shall be deposited in escrow with a suitable bank or trust company, having its principal place of business within or without the state, and shall be invested in such amount and in securities maturing on such dates and bearing interest at such rates as shall be required to provide funds sufficient to pay when due the interest to accrue on each bond refunded to its maturity or, if it is prepayable and called for redemption, to an earlier prior date upon which it may be called for redemption, and to pay and redeem the principal amount of each such bond at maturity or, if prepayable and called for redemption, at the earlier redemption date, and any premium required for redemption on such date, or in the case of a crossover refunding, must be invested in securities irrevocably appropriated to the payment of principal and interest on the refunding bonds until the date the proceeds are applied to the payment or redemption of the bonds to be refunded. The governing body’s resolution authorizing the refunding bonds shall irrevocably appropriate for these purposes the escrow fund and all investments thereof, which shall be held in safekeeping by the escrow agent, and all income therefrom, and may provide for the call for redemption of all prepayable bonds in accordance with their terms. The securities to be purchased with the escrow fund shall be limited to general obligations of the United States, securities whose principal and interest payments are guaranteed by the United States, and securities issued by the following United States government agencies: banks for cooperatives, federal home loan banks, federal intermediate credit banks, federal land banks, and the federal national mortgage association. Such securities shall be purchased simultaneously with the delivery of the refunding bonds. Moneys on hand in the sinking fund maintained for the payment of the outstanding bonds, and not immediately needed for the payment of interest or principal due, or other legally available funds of the municipality may likewise be deposited in the escrow fund and invested in the same manner as the proceeds of the new bonds, to the extent consistent with the provisions of resolutions authorizing the outstanding bonds.

Source: S.L. 1937, ch. 105, § 7; R.C. 1943, § 40-3613; S.L. 1969, ch. 376, § 7; 1971, ch. 409, § 3; 1977, ch. 382, § 3; 1981, ch. 273, § 3; 1987, ch. 236, § 4.

40-36-14. Recourse to general fund to pay refunding bonds prohibited — Credit or taxing power not pledged to payment.

No recourse shall be had to the general fund of any municipality for the payment of refunding bonds or interest thereon, or any part thereof. The credit or taxing power of any municipality shall not be deemed to be pledged to the payment of refunding bonds.

Source: S.L. 1937, ch. 105, § 9, subs. 1; R.C. 1943, § 40-3614.

40-36-15. Municipalities may appoint fiscal agent — Make rules and regulations governing.

Any municipality, in connection with the issuance of refunding bonds, may appoint a fiscal agent, provide for the fiscal agent’s powers, duties, functions, and compensation, limit the fiscal agent’s liabilities, prescribe a method for the fiscal agent’s resignation, removal, merger, or consolidation, and provide for the appointment of a successor and the transfer of rights and properties to such successor fiscal agent.

Source: S.L. 1937, ch. 105, § 11; R.C. 1943, § 40-3615.

40-36-16. Duties of municipality and officers.

In order that the payment of refunding bonds and interest thereon shall be secured adequately, any municipality issuing refunding bonds pursuant to this chapter, and the proper officers, agents, and employees thereof, shall:

  1. Pay or cause to be paid punctually the principal of every refunding bond and the interest thereon on the date or dates, at the place or places, in the manner, and out of the funds, mentioned in such refunding bond and in the coupons thereto appertaining and in accordance with the resolution authorizing its issuance.
  2. Operate the enterprise in an efficient and economical manner and establish, levy, maintain, and collect such fees, tolls, rentals, rates, and other charges in connection therewith as may be necessary or proper. Such fees, tolls, rates, rentals, and other charges shall be sufficient, after making due and reasonable allowances for contingencies and for a margin of error in the estimates, at least:
    1. To pay all current expenses of operation and maintenance of such enterprise;
    2. To pay the interest on and principal of the refunding bonds as the same shall become due and payable;
    3. To comply in all respects with the terms of the resolution authorizing the issuance of refunding bonds or any other contract or agreement with the holders of the refunding bonds; and
    4. To meet any other obligations of the municipality which are charges, liens, or encumbrances upon the revenues of such enterprise.
  3. Operate, maintain, preserve, and keep the enterprise and every part or parcel thereof, or cause the same to be operated, maintained, preserved, and kept in good repair, working order, and condition.
  4. Preserve and protect the security of the refunding bonds and the rights of the holders thereof, and warrant and defend such rights against all claims and demands of all persons whomsoever.
  5. Pay and discharge, or cause to be paid or discharged, any and all lawful claims for labor, materials, and supplies, which, if unpaid, might become by law a lien or charge upon the revenues, or any part thereof, superior to the lien of the refunding bonds or which might impair the security of the refunding bonds, all to the end that the priority and security of the refunding bonds shall be fully preserved and protected.
  6. Hold in trust the revenues pledged to the payment of the refunding bonds for the benefit of the holders of such bonds, and apply such revenues only as provided by the resolution authorizing the issuance of the refunding bonds, or, if such resolution thereafter shall be modified in the manner provided therein or in this chapter, as provided in such resolution as modified.
  7. Keep proper books of record and accounts of the enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the enterprise or any part thereof, and which, together with all other books and papers of the municipality, shall be subject at all times to the inspection of the holder or holders of not less than ten percent of the refunding bonds then outstanding or of the holder’s or holders’ representatives duly authorized in writing.

None of the duties contained in this section shall require the expenditure in any manner or for any purpose by the municipality of any funds other than revenue received or receivable from the enterprise. The performance of the duties enumerated in this section shall be of the essence of the contract of the municipality with the bondholders at all times.

Source: S.L. 1937, ch. 105, § 12; R.C. 1943, § 40-3616.

40-36-17. General remedies of holders of refunding bonds — Receiver of enterprise.

The holders of bonds issued under this chapter, or a trustee for such holders, may exercise any or all of the general remedies provided in section 40-35-15, subject, however, to the restrictions and limitations contained in that section. A receiver for an enterprise may be appointed for the reasons and in the manner prescribed in section 40-35-16 for the appointment of a receiver for an undertaking. Any receiver appointed for an enterprise shall have the powers and shall perform the duties prescribed in section 40-35-16 for the receiver of an undertaking. The termination of a receivership for an enterprise shall be governed by the provisions of section 40-35-18, and after the enterprise is surrendered to the municipality, the holder of refunding bonds, upon any subsequent default, may secure the appointment of a receiver as in the case of the original default. The receiver for an enterprise shall be subject to the continuing jurisdiction of the court and may be removed by the court as specified in section 40-35-19.

Source: S.L. 1937, ch. 105, § 14, subss. 1 to 4, 15; R.C. 1943, § 40-3617.

40-36-18. Waiver of default or breach of duty or contract not to extend to subsequent default or breach of duty or contract.

No waiver of any default or breach of duty or contract, whether such waiver is by a holder of refunding bonds or by a trustee therefor, shall extend to or affect any subsequent default or breach of duty or contract, nor shall any such waiver impair any rights or remedies on the bonds. No delay or omission of any bondholder, or any trustee therefor, to exercise any right or power accruing upon any default shall impair any such right or power or constitute a waiver of any such default or an acquiescence therein. Every substantive right and remedy conferred upon the holders of refunding bonds may be enforced and exercised from time to time and as often as may be deemed expedient. In case any suit, action, or proceeding to enforce any right or to exercise any remedy shall be brought or taken and then discontinued or abandoned or shall be determined adversely to the holder of the refunding bonds or to any trustee therefor, then and in every such case, the municipality and such holder or such trustee shall be restored to their former positions, rights, and remedies as if no such suit, action, or proceeding had been brought or taken.

Source: S.L. 1937, ch. 105, § 15; R.C. 1943, § 40-3618.

40-36-19. Limitations on authorizations contained in chapter — Effect of chapter on bonds issued prior to March 12, 1937.

Nothing in this chapter shall be deemed in any way to:

  1. Alter the terms of any agreements made with the holders of any outstanding notes, bonds, or other obligations of the municipality, prior to March 12, 1937;
  2. Authorize the municipality to alter the terms of any such agreements, or to impair, or to authorize the municipality to impair, the rights and remedies of any creditors of the municipality; or
  3. To authorize any municipality to do anything in any manner or for any purpose which would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument which would constitute a bond or debt within the meaning of any provision, limitation, or restriction of the Constitution of North Dakota relating to the creation or incurring of a debt or indebtedness or the issuance of an instrument constituting a bond or a debt.

Source: S.L. 1937, ch. 105, § 8, subss. 4, 5; R.C. 1943, § 40-3619.

40-36-20. Construction — Procedure in issuance of refunding bonds.

This chapter shall constitute full and complete authority for the issuance of refunding bonds. No procedure or proceedings, publications, notices, consents, approvals, orders, acts, or things by any governing body of any municipality, or of any board, officer, commission, department, agency, or instrumentality of the state or of any municipality shall be required to issue any refunding bonds or to do any act or perform anything under this chapter, except as may be prescribed herein. The powers conferred by this chapter shall be in addition and supplemental to, and the limitations imposed by this chapter shall not affect the powers conferred by, any other law of this state.

Source: S.L. 1937, ch. 105, § 16; R.C. 1943, § 40-3620.

CHAPTER 40-37 Levy for Municipal Band

40-37-01. Municipality may provide tax levy for municipal band purposes.

A municipality, when authorized as provided in this chapter, may levy a tax annually for the purpose of providing a fund for the maintenance or employment of a band for municipal purposes.

Source: S.L. 1927, ch. 270, § 1; R.C. 1943, § 40-3701.

40-37-02. Authority for levy initiated by petition — Signatures — Filing — Question submitted to electors.

The authority for making a tax levy for municipal band purposes shall be initiated by a petition signed by at least ten percent of the qualified electors of the municipality as determined by the number of votes cast at the last regular municipal election. The petition shall be filed with the governing body and shall request that the following question be submitted to the qualified electors:

Shall a tax of not exceeding mills (specifying the rate) be levied each year for the purpose of furnishing a band fund?

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When such petition is filed, the governing body shall cause the question to be submitted to the qualified electors at the first following general municipal election.

Source: S.L. 1927, ch. 270, §§ 2, 3; R.C. 1943, § 40-3702; S.L. 1985, ch. 235, § 85.

40-37-03. City band funding.

The governing body of the municipality may provide funding from revenues derived from its general fund levy authority for the maintenance or employment of a band for municipal purposes and may cover the appropriation in its annual general fund tax levy. The amount appropriated for the maintenance or employment of a band for municipal purposes shall not exceed the amount which will be raised by a levy of one mill on the taxable valuation of the taxable property in the municipality.

Source: S.L. 1927, ch. 270, § 4; 1929, ch. 238, § 1; R.C. 1943, § 40-3703; S.L. 1955, ch. 275, § 1; 1957 Supp., § 40-3703; S.L. 1983, ch. 593, § 22; 2015, ch. 439, § 43, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 43 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-37-04. Funds derived from levy expended only for maintenance and employment of municipal band.

All funds derived from a levy made under the provisions of this chapter shall be expended by the governing body only for the maintenance or employment of a municipal band.

Source: S.L. 1927, ch. 270, § 6; R.C. 1943, § 40-3704.

40-37-05. Petition and election for cancellation of tax levy for municipal band.

A petition similar to that prescribed in section 40-37-02 may be presented to the governing body at any time asking that the following proposition be submitted to the qualified electors:

Shall the power to levy a tax for the maintenance or employment of a band be canceled?

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The question shall be submitted at the first general or municipal election following the presentation of such petition. If a majority of the votes cast on such question are in favor of the proposition, no further levy for a municipal band shall be made until at such time as the question again may be voted upon favorably.

Source: S.L. 1927, ch. 270, § 5; R.C. 1943, § 40-3705.

CHAPTER 40-38 Public Libraries

40-38-01. Public library and reading room — Establishment — Election.

The governing body of any city or county upon petition of not less than fifty-one percent of the qualified electors of the city or county as determined by the total number of votes cast at the last general election or upon a majority vote of the qualified electors thereof voting on the question shall establish and maintain public library service within its geographic limits by means of a public library and reading room or other public library service, either singly or in cooperation with the state library, or with one or more cities or counties, or by participation in an approved state plan for rendering public library service under the Library Services and Construction Act [20 U.S.C. 351-358], and acts amendatory thereof. Such question shall be submitted to the qualified electors upon resolution of the governing body or upon the petition of not less than twenty-five percent of that number of qualified electors of the city or county that voted at the last general election, filed with the governing body not less than ninety days before the next regular election. Library service may be discontinued within any city or county by any of the methods by which library services may be established, except that once established, such service shall not be discontinued until after it has been in operation for at least five years from the date of establishment.

Source: S.L. 1887, ch. 56, § 1; R.C. 1895, § 2467; R.C. 1899, § 2467; S.L. 1901, ch. 97, § 1; R.C. 1905, § 2972; S.L. 1909, ch. 155, § 1; 1911, ch. 179, § 1; C.L. 1913, § 4007; R.C. 1943, § 40-3801; S.L. 1945, ch. 260, § 1; 1957, ch. 352, § 1; 1957 Supp., § 40-3801; S.L. 1965, ch. 352, § 4; 1971, ch. 410, § 1; 1979, ch. 550, § 1; 1985, ch. 235, § 86; 1997, ch. 108, § 26; 2011, ch. 152, § 44.

Effective Date.

The 2011 amendment of this section by section 44 of chapter 152, S.L. 2011 became effective August 1, 2011.

Note.

The Library Services and Construction Act is now compiled as 20 USCS, §§ 351-364.

Cross-References.

Historical society, municipality may furnish rooms in public library for, see § 11-11-52.

State aid to libraries, see ch. 54-24.2.

40-38-02. Library fund — Financial report — Levy — Kept separate — Exemption for city levying tax — Increasing levy.

  1. For the purpose of establishing and maintaining public library service, the governing body of a municipality or county authorizing the same shall establish a library fund. The library fund shall consist of annually levying and causing to be collected as other taxes are collected a municipal or county tax not exceeding the limitations in subsection 6 of section 57-15-06.7 and subsection 4 of section 57-15-10 and any other moneys received for library purposes from federal, state, county, municipal, or private sources. In the year for which the levy is sought, a library board seeking approval of a property tax levy under this chapter must file with the auditor of each participating municipality or county, at a time and in a format prescribed by the auditors, a financial report for the preceding calendar year showing the ending balances of each fund held for the library board during that year.
  2. The city auditor or county treasurer shall establish and maintain the fund to account for library revenues and shall make payments from the fund for invoices that have been submitted and approved by the governing body of the library. In the case of a contract with another library for service delivery, the city auditor or county treasurer shall promptly transmit all funds received to the established library fund of the agency delivering service. On request of the city auditor or county treasurer and during an audit, the governing board of the library shall supply its records. The records must be provided on a timely basis. The fund may not revert to the governing body of the city or county at the end of any fiscal year. The fund must be used exclusively for the establishment and maintenance of public library service.
  3. The governing board of the library may request annually from the governing body of a city or county a tax not exceeding the limitation in subsection 15 of section 57-15-06.7 and subsection 5 of section 57-15-10. Such tax may be levied by the governing body of a city or county.
  4. If a county levies for county library service and a city levies a tax for public library service under this section, the county tax levy within that city must be reduced so the total levy in that city does not exceed four mills. If the city has been totally exempted from county library service levy under this section, the phrase “not less than fifty-one percent of the qualified electors of the city or county as determined by the total number of votes cast at the last general election” as stated in section 40-38-01 shall mean fifty-one percent of the total number of votes cast at the last general election in the county less the total number of votes cast at the last general election in the city. If an election on the question is held, the qualified electors of any city so exempted from the county library tax shall not be entitled to vote on the establishment or discontinuance of the county library service.
  5. Upon motion of the governing body or upon petition of not less than twenty-five percent of the qualified electors in the last general election of any city, school district, township, or county, filed not less than sixty days before the next election, the governing body shall submit to the qualified electors at the next election the question of whether the governing body shall increase the mill levy a specified amount for public library service above the mill levy limitation set out in this section. The governing body may call a special election at any time for the purpose of voting on the question, and the election shall be called, conducted, and certified as are other elections in that political subdivision. Upon approval by sixty percent of the qualified electors voting in the election, the governing body shall increase the levy for public library service in the amount approved by the qualified electors.

Source: S.L. 1887, ch. 56, § 1; R.C. 1895, § 2467; R.C. 1899, § 2467; S.L. 1901, ch. 97, § 1; R.C. 1905, § 2972; S.L. 1909, ch. 155, § 1; 1911, ch. 179, § 1; C.L. 1913, § 4007; R.C. 1943, § 40-3802; S.L. 1945, ch. 260, § 2; 1955, ch. 276, § 1; 1957, ch. 352, § 2; 1957 Supp., § 40-3802; S.L. 1965, ch. 352, § 5; 1971, ch. 410, § 2; 1973, ch. 333, § 1; 1981, ch. 418, § 1; 1983, ch. 463, § 1; 1983, ch. 593, § 23; 1983, ch. 606, § 41; 1985, ch. 235, § 87; 1987, ch. 78, § 3; 2015, ch. 439, § 44, eff for taxable years beginning after December 31, 2014; 2015, ch. 88, § 18, eff for taxable years beginning after December 31, 2015; 2015, ch. 92, § 17, eff for taxable years beginning after December 31, 2015.

Effective Date.

The 2015 amendment of this section by section 18 of chapter 88, S.L. 2015 is effective for taxable years beginning after December 31, 2015.

The 2015 amendment of this section by section 17 of chapter 92, S.L. 2015 is effective for taxable years beginning after December 31, 2015.

The 2015 amendment of this section by section 44 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Notes.

Section 40-38-02 was amended 3 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 17 of Chapter 92, Session Laws 2015, Senate Bill 2217; Section 18 of Chapter 88, Session Laws 2015, Senate Bill 2056;. and Section 44 of Chapter 439, Session Laws 2015, Senate Bill 2144.

Cross-References.

Tax levy limitations, see § 57-15-08.

Notes to Decisions

Inclusion in General Tax.

General tax referred to and authorized by C.L. 1913, § 3680 (N.D.C.C. § 40-40-09) did not include the tax authorized by this statute for library purposes. State ex rel. Arnot v. Flaherty, 45 N.D. 549, 178 N.W. 790, 1920 N.D. LEXIS 160 (N.D. 1920).

40-38-03. Board of directors — Appointment — Term of office — Compensation — Filling vacancies — Organization.

  1. The governing body of a municipality that has established a public library and reading room, or the board of county commissioners for a county library, shall appoint a board of five directors who must be residents of the municipality or county, as the case may be, to govern the library and reading room. One member of the governing body of the municipality or designated representative must be a member of the board of directors of a municipal library, and must be a resident of the municipality that establishes and maintains the municipal library; and one member of the board of county commissioners or designated representative must be a member of the county board of directors.
  2. The terms of office of the members of the first board of directors must be established so one member holds office for one year, two members hold office for two years, and two members hold office for three years. The members, at their first meeting, shall determine the length of their respective terms by lot. Thereafter, the number of directors required to fill expired terms must be appointed each year, and each director may hold office for a term of three years from the first day of July in the year of appointment and until a successor has been appointed. No member of the board may serve for more than two consecutive terms, after which an interval of one year must elapse before the same member may be reappointed. All vacancies on the board of directors must be reported by the board to the governing body of the municipality or the board of county commissioners, as the case may be, and must be filled thereby. An appointment to fill an unexpired term may be for the residue of the term only.
  3. The appointing authority shall establish the rate of compensation for directors and actual expenses incurred by directors may be reimbursed at the official reimbursement rates of the appointing authority.
  4. Immediately after the appointment of its members, the board of directors shall meet and organize by electing a president. The governing board of a municipality or county establishing public library service may, in lieu of appointing a library board, contract directly with a library board established by another governing body of a municipality or county for the purpose of extending public library service.

Source: S.L. 1887, ch. 56, §§ 2, 3; R.C. 1895, §§ 2468, 2469; R.C. 1899, §§ 2468, 2469; R.C. 1905, §§ 2973, 2974; S.L. 1909, ch. 155, § 1; C.L. 1913, §§ 4008, 4009; R.C. 1943, § 40-3803; S.L. 1945, ch. 260, § 3; 1957 Supp., § 40-3803; S.L. 1961, ch. 158, § 82; 1965, ch. 352, § 6; 1967, ch. 323, § 190; 1969, ch. 377, § 1; 1971, ch. 410, § 3; 1973, ch. 333, § 2; 1975, ch. 379, § 1; 2011, ch. 298, § 1; 2013, ch. 93, § 13.

Effective Date.

The 2013 amendment of this section by section 13 of chapter 93, S.L. 2013 became effective August 1, 2013.

The 2011 amendment of this section by section 1 of chapter 298, S.L. 2011 became effective March 28, 2011, pursuant to an emergency clause in section 2 of chapter 298, S.L. 2011.

40-38-04. General powers and duties of board of directors.

The board of directors shall have the following powers and duties:

  1. To make and adopt such bylaws, rules, and regulations relating to the duties of the officers of the board as may be expedient and not inconsistent with the provisions of this chapter.
  2. To make and adopt such bylaws, rules, and regulations for the management of the library and reading room as are expedient and not inconsistent with the provisions of this chapter.
  3. To control, exclusively, the expenditures of all moneys collected for or contributed to the library fund.
  4. To have the supervision, care, and custody of the library property, and of the rooms or buildings constructed, leased, or set apart for use of library purposes.
  5. To contract to furnish library service and to receive library service from other counties, school districts, and cities of the state of North Dakota and adjoining states, and the state library.
  6. To employ qualified personnel to administer the public library and dispense library services.

Source: S.L. 1887, ch. 56, § 3; R.C. 1895, § 2469; R.C. 1899, § 2469; R.C. 1905, § 2974; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4009; R.C. 1943, § 40-3804; S.L. 1945, ch. 260, § 4; 1957 Supp., § 40-3804; S.L. 1973, ch. 333, § 3; 1975, ch. 379, § 2; 1975, ch. 380, § 1; 1979, ch. 550, § 2.

40-38-05. Board of directors may purchase, build, or lease building for library — Library building fund — Public hearing required.

The board of directors, with the approval of the city or county governing body, may build, lease, lease-purchase, or purchase an appropriate building for a library and purchase a site therefor. Such lease, purchase, or contract shall not be valid without the approval of the governing body of the city or county. Prior to any actions on such proposals, the governing body shall hold a public hearing on the proposals. Notice of the hearing shall be published at least once, not less than six days prior to the hearing, in a newspaper of general circulation within the city or county. The governing body shall seek the advice and comment of the state library and the general public at the hearing. After such hearing, the governing body of a city or county may establish by resolution a library building fund for the purpose of construction, enlargement, or alteration of a building or for the purchase of an existing building to be used as a public library. The city auditor or county treasurer shall place in the library building fund all moneys for such purposes as may be appropriated by the governing body or received for such purposes from federal, state, county, city, or private sources. The library building fund shall not revert to the library general fund or the general fund of the city or county without authorization by formal resolution from both the library’s board of directors and the governing body of the city or county.

Source: S.L. 1887, ch. 56, § 3; R.C. 1895, § 2469; R.C. 1899, § 2469; R.C. 1905, § 2974; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4009; R.C. 1943, § 40-3805; S.L. 1945, ch. 260, § 5; 1957 Supp., § 40-3805; S.L. 1961, ch. 158, § 83; 1973, ch. 333, § 4; 1979, ch. 550, § 3.

40-38-06. Vouchers — How drawn.

The duly bonded secretary or treasurer of the board of directors may draw money from the library fund upon vouchers of the board of directors without any other audit.

Source: S.L. 1887, ch. 56, § 3; R.C. 1895, § 2469; R.C. 1899, § 2469; R.C. 1905, § 2974; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4009; R.C. 1943, § 40-3806; S.L. 1981, ch. 418, § 2.

40-38-07. Library free to inhabitants of political subdivision — Subject to rules published by board of directors.

Every library and reading room established under this chapter shall be free for the use of inhabitants of the political subdivision where it is located subject to such reasonable rules and regulations as the board of directors may deem necessary to adopt and publish to render the use of the library and reading room of the greatest benefit. The board may exclude from the use of the library and reading room any and all persons who willfully shall violate such rules.

Source: S.L. 1887, ch. 56, § 4; R.C. 1895, § 2470; R.C. 1899, § 2470; R.C. 1905, § 2975; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4010; R.C. 1943, § 40-3807.

40-38-08. Donations — How accepted — Board of directors as trustee.

All persons desirous of making donations of money, books, personal property, or real estate for the benefit of the library may vest the same in the board of directors. The board shall hold and control all property accepted for the use of the library and reading room as a special trustee.

Source: S.L. 1887, ch. 56, § 6; R.C. 1895, § 2472; R.C. 1899, § 2472; R.C. 1905, § 2977; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4012; R.C. 1943, § 40-3808; S.L. 1949, ch. 276, § 1; 1957 Supp., § 40-3808; S.L. 1981, ch. 418, § 3.

40-38-09. Annual report of board of directors — Contents — To whom made.

The board of directors shall make a report on July first of each year to the governing body of the city or board of county commissioners, as the case may be, stating:

  1. The condition of the library and property.
  2. The various sums of money received from all sources.
  3. How much money has been expended and for what purpose.
  4. The number of books and periodicals on hand.
  5. The number of books and periodicals added by purchase or gift during the year and the number thereof lost or loaned out.
  6. The character and kind of books contained in the library.
  7. Such other statistics, information, and suggestions as the board may deem of general interest or as may be required by the state library.

Copies of the report shall be filed with the governing body of the political subdivision and with the state library.

Source: S.L. 1887, ch. 56, § 5; R.C. 1895, § 2471; R.C. 1899, § 2471; R.C. 1905, § 2976; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4011; R.C. 1943, § 40-3809; S.L. 1945, ch. 260, § 6; 1957 Supp., § 40-3809; S.L. 1973, ch. 333, § 5; 1979, ch. 550, § 4.

40-38-10. Contributions by political subdivision to establishment of library without election authorized.

To aid and facilitate the organization of library service, the governing body of any city where the population is less than two thousand five hundred may appropriate annually from its general fund, or from any other moneys received for library purposes from federal, state, and private sources, a sum not to exceed five dollars per capita for the purchase of books and periodicals to remain the property of the city and to be loaned to any local library for free public use. The governing body shall appoint a book committee of three which shall select the books and periodicals from standard and recommended lists furnished by the state library. The selection so made by such committee shall be submitted to the governing body for approval and purchase by such governing body; provided, that the amount so expended for such books and periodicals shall be within the amount appropriated therefor. Books and periodicals purchased with this fund shall be properly stamped as belonging to the city. Such appropriation shall be made and books and periodicals purchased without submitting the same to vote as provided in section 40-38-02. As an alternative, the governing body may contract with a library operated by a city, county, school district, or the state library for the provision of public library service for the city.

Source: S.L. 1887, ch. 56, § 7; R.C. 1895, § 2473; R.C. 1899, § 2473; R.C. 1905, § 2978; S.L. 1909, ch. 155, § 1; C.L. 1913, § 4013; R.C. 1943, § 40-3810; S.L. 1945, ch. 260, § 7; 1957 Supp., § 40-3810; S.L. 1967, ch. 323, § 191; 1973, ch. 333, § 6; 1979, ch. 550, § 5.

40-38-11. Joint public library services by cities and counties.

  1. Upon compliance with section 40-38-01 for the establishment of public library services, public library services may be jointly provided through a written agreement between the governing bodies of any city or county or both to establish and maintain joint library services with one or more cities or counties or both.
  2. A party shall be bound to an agreement entered into under subsection 1 for an initial five-year term and subsequent five-year terms unless it provides other parties to the agreement with notice of intent to withdraw from the agreement at least two years before the proposed date of withdrawal.
  3. The parties to the agreement shall appoint a single joint library board to govern public library services covered by the agreement. The method of representation on the joint library board and the establishment of the initial board with staggered terms shall be determined in the agreement. Provided, the joint library board shall consist of an equal number of appointees from each party to the agreement and, in any case, shall consist of not less than five members nor more than eleven members. No member of the board shall serve for more than two consecutive three-year terms, after which an interval of one year must elapse before the same member may be reappointed.
  4. The joint library board shall have all power and duties provided in sections 40-38-04 through 40-38-09.
  5. A joint library fund shall be established for the public library services covered by the agreement. Each city or county represented in the agreement shall provide its pro rata share of funds for the services, as specified in the agreement, from the funds received under section 40-38-02. Taxes within the service area covered by the written agreement under subsection 1 which is outside city limits may be levied within the limitations and according to the procedures provided by law for a county library fund levy and taxes within the service area that is within city limits may be levied within the limitations and according to the procedures provided by law for a city library fund levy.
  6. The joint library board shall appoint, and may remove, a treasurer to administer the joint library fund. The treasurer may be a treasurer of one of the parties to the agreement or a member of the board or both. The city auditor and county treasurer of each city or county represented in the agreement and the state librarian shall promptly transmit all funds authorized under subsection 5 and chapter 54-24.2, respectively, directly to the treasurer of the joint library board. The treasurer shall pay out moneys belonging to the joint library board only upon properly drawn vouchers, pursuant to order of the joint library board. The funds received by the treasurer shall not revert to or be considered funds on hand by any governmental unit furnishing the same, at the end of any biennium or fiscal year. The treasurer shall be bonded in such amount as may be specified by resolution adopted by the joint library board.
  7. The agreement shall include provisions for the dissolution of the joint library board and distribution of assets in the event the agreement is terminated.
  8. Joint libraries established and operated under this section are eligible to receive financial aid under chapter 54-24.2 to the extent that each city and county represented in the agreement would be eligible for the aid.
  9. Agreements for public library services between cities or counties or both may be provided under this section or other provisions of this chapter and may not be provided under chapter 54-40 or other provisions of law.
  10. After July 1, 1981, the establishment of joint library services pursuant to this section shall not be permitted unless approved by the electors of each individual city or county considering the question.

Source: S.L. 1965, ch. 352, § 2; 1971, ch. 411, § 1; 1979, ch. 550, § 6; 1981, ch. 418, § 4; 2005, ch. 348, § 1.

Effective Date.

The 2005 amendment of this section by section 1 of chapter 348, S.L. 2005 is effective for taxable years beginning after December 31, 2004, pursuant to section 2 of chapter 348, S.L. 2005.

40-38-12. Library records — Open records exception.

Any record maintained or received by a library receiving public funds, which provides a library patron’s name or information sufficient to identify a patron together with the subject about which the patron requested information, is considered private and is excepted from the public records disclosure requirements of section 44-04-18. These records may be released when required pursuant to a court order or a subpoena.

Source: S.L. 1985, ch. 464, § 1.

CHAPTER 40-38.1 Municipal Arts Council

40-38.1-01. Municipal arts council — Establishment — Election.

The question of establishing a municipal arts council shall be submitted to the electors upon resolution of the governing body or upon the petition of not less than twenty-five percent of that number of electors of the city who voted at the last general election, filed with the governing body not less than sixty days before the next regular election. The municipal arts council may be discontinued within any city by any of the methods by which it may be established, except that once established, such council shall not be discontinued until after it has been in operation for at least five years from the date of establishment.

Source: S.L. 1981, ch. 419, § 1.

40-38.1-02. Municipal arts fund — Levy — Collection — Kept separate.

For the purpose of establishing and maintaining the municipal arts council, the governing body of a city authorizing the same shall establish a municipal arts fund. The fund shall consist of revenues from any city property tax authorized by this section, which levy may be made by the city at the direction of the municipal arts council in any amount, but not exceeding the limitation in subsection 6 of section 57-15-10 and any other moneys received from federal, state, county, city, or private sources. The city auditor shall keep the municipal arts fund separate and apart from the other money of the city, and it shall not revert to or be considered funds on hand by the governing body at the end of any fiscal year. The municipal arts fund shall be used exclusively for the establishment and maintenance of the municipal arts council and for grants by the council to appropriate arts organizations in the city. Upon motion of the governing body or upon petition of not less than twenty-five percent of the qualified electors voting in the last general election of the city, filed not less than sixty days before the next regular election, the governing body shall submit to the qualified electors at the next regular election the question of whether such governing body shall annually levy a specified amount not to exceed five mills for the municipal arts council.

Source: S.L. 1981, ch. 419, § 2; 1983, ch. 593, § 24; 1983, ch. 606, § 42; 1985, ch. 235, § 88; 2015, ch. 439, § 45, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 45 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-38.1-03. Board of directors — Appointment — Term of office — No compensation — Filling vacancies — Organization.

The governing body of a city which has established a municipal arts council shall appoint a board of not less than five nor more than nine directors who must be residents of the city as members of the council. The terms of office of the members of the first council appointed under this section shall be staggered so that, as near as possible, an equal number of terms will expire in each of the first three years. The members, at their first meeting, shall determine the length of their respective terms by lot. Thereafter, the number of members required to fill expired terms shall be appointed each year, and thereafter each member shall hold office for a term of three years from the first day of July in the year of the appointment and until a successor has been appointed. No member of the council shall serve for more than two consecutive terms, after which an interval of one year must elapse before the same member may be reappointed. All vacancies on the municipal arts council shall be reported by the council to the governing body of the city and shall be filled by the governing body. Appointments made to fill unexpired terms shall be for the remainder of the term only. No compensation shall be paid or allowed to a council member. Immediately after the appointment of its members, a municipal arts council shall meet and organize by electing a president and a secretary.

Source: S.L. 1981, ch. 419, § 3.

40-38.1-04. General powers and duties of a municipal arts council.

A municipal arts council shall have the following powers and duties:

  1. To make and adopt such bylaws and rules relating to the duties of the officers and members of the council as may be expedient and not inconsistent with the provisions of this chapter.
  2. To control, exclusively, the expenditures of all moneys collected for or contributed to the municipal arts fund.
  3. To employ qualified personnel to administer the provisions of this chapter.

Source: S.L. 1981, ch. 419, § 4.

40-38.1-05. Board of directors may purchase, build, or lease building for offices — Municipal arts council office fund — Public hearing required.

The municipal arts council, with the approval of the city governing body, may build, lease, lease-purchase, or purchase office space for the municipal arts council and purchase a site therefor. Such lease, purchase, or contract shall not be valid without the approval of the governing body of the city. Prior to any actions on such proposals, the governing body shall hold a public hearing on the proposals. Notice of the hearing shall be published at least once, not less than six days prior to the hearing, in a newspaper of general circulation within the city. The governing body shall seek the advice and comment of the general public at the hearing. After such hearing, the governing body of a city may establish by resolution a municipal arts council building fund for the purpose of construction, enlargement, or alteration of a building or for the purchase of an existing building to be used for offices for the municipal arts council. The city auditor shall place in the building fund all moneys for such purposes as may be appropriated by the governing body or received for such purposes from federal, state, county, city, or private sources. The building fund shall not revert to the general fund of the city without authorization by formal resolution from both the municipal arts council and the governing body of the city.

Source: S.L. 1981, ch. 419, § 5.

40-38.1-06. Vouchers — How drawn.

The secretary of the council may draw money from the municipal arts fund upon vouchers of the board of directors without any other audit. However, no vouchers may be drawn payable to the fund created under section 40-38.1-05.

Source: S.L. 1981, ch. 419, § 6.

40-38.1-07. Donations — How accepted — Council as trustee.

All persons desirous of making donations of money, personal property, or real estate for the municipal arts fund may vest the same in the municipal arts council. The council shall hold and control all property accepted as a special trustee. The city auditor shall be ex officio treasurer of the council as such special trustee, and shall, under the direction of the council, keep, invest, and disburse all funds and securities so vested in said board. The treasurer shall be deemed a public employee and as such bonded through the state bonding fund in the amount fixed by the council and at the expense of the council, as are other public employees under chapter 26.1-21.

Source: S.L. 1981, ch. 419, § 7; 1983, ch. 319, § 28.

40-38.1-08. Annual report of municipal arts council — Contents — To whom made.

A municipal arts council shall make a report on July first of each year to the governing body of the city, stating:

  1. The condition of the property donated to the fund.
  2. The various sums of money received from all sources.
  3. How much money has been expended and for what purpose.
  4. Such other statistics, information, and suggestions as the council may deem of general interest.

Copies of the report shall be filed with the governing body of the city.

Source: S.L. 1981, ch. 419, § 8.

40-38.1-09. Contributions by political subdivision to establishment of municipal arts council without election authorized.

To aid and facilitate the organization of the municipal arts council, the governing body of any city where the population is less than two thousand five hundred may appropriate annually from its general fund, or from any other moneys received for similar purposes from federal, state, and private sources, a sum not to exceed five dollars per capita. Such appropriation shall be made without submitting the same to vote as provided in section 40-38.1-02.

Source: S.L. 1981, ch. 419, § 9; 1983, ch. 82, § 83.

CHAPTER 40-39 Opening and Vacating Streets, Alleys, and Public Places

40-39-01. Survey, plat, and estimate made by city engineer.

Whenever the governing body of a municipality shall deem it necessary to open, lay out, widen, or enlarge any street, alley, or public place within the municipality, it shall cause an accurate survey and plat to be made by the city engineer, county surveyor, or other competent civil engineer, with an estimate of the probable cost of the improvement. Such engineer or surveyor shall file the survey, plat, and estimate in the office of the city auditor and shall retain an office copy.

Source: S.L. 1887, ch. 73, art. 15, § 12; R.C. 1895, § 2276; R.C. 1899, § 2276; S.L. 1905, ch. 62, § 126; R.C. 1905, § 2760; S.L. 1907, ch. 262, § 1; C.L. 1913, §§ 3685, 3986; R.C. 1943, § 40-3901; S.L. 1967, ch. 323, § 192.

Cross-References.

Agreements with state or county for street improvement or maintenance, see §§ 40-05-14, 40-22-06.

Boulevards, see ch. 40-32.

Curbs and gutters, see ch. 40-31.

Gravel surfacing of city streets, see ch. 40-54.

Lighting of streets, see ch. 40-30.

Maps of municipal arterial street systems maintained by state highway department, see § 24-01-07.

Master plan to include streets, see ch. 40-48.

Ownership of fee, presumption, see § 47-01-16.

Powers of governing body over streets, see § 40-05-01.

Residential paving projects, see ch. 40-56.

Sidewalks, see ch. 40-29.

Special assessments for street improvements, see § 40-22-01.

Special law vacating streets prohibited, see Const., art. IV, § 43.

Street railway, telephone or telegraph, approval of governing body required for use of streets, see Const., art. X, § 10.

Township roads in surveyed areas contiguous to municipality, see § 24-06-10.

Unincorporated townsites, sidewalks and street lights, see ch. 58-16.

Collateral References.

Effect of regulations as to subdivision maps or plats upon vacation of streets and highways, 11 A.L.R.2d 524, 532.

Private improvement of land dedicated but not used as street as estopping public rights, 36 A.L.R.4th 625.

40-39-02. Taking private property by purchase or eminent domain — Special assessments levied — Limitation on general tax.

If it is necessary to take private property in order to open, lay out, widen, or enlarge any street or alley in any incorporated municipality, it shall be done by purchase or, subject to chapter 32-15, by the exercise of the right of eminent domain. When property is purchased or a judgment for damages is entered for property taken for any such improvement, the governing body shall certify the purchase or judgment to the special assessment commission, which shall levy special assessments upon the property benefited to pay such judgment or the purchase price. Not more than three-fourths of the purchase price or judgment may be paid by the levy of a general tax upon all the taxable property in a city.

Source: S.L. 1905, ch. 62, § 127; R.C. 1905, § 2761; S.L. 1907, ch. 262, § 2; C.L. 1913, §§ 3686, 3987; S.L. 1915, ch. 73, § 1; 1917, ch. 76, § 1; 1925 Supp., § 3686; R.C. 1943, § 40-3902; S.L. 1967, ch. 323, § 193; 2007, ch. 293, § 25.

Effective Date.

The 2007 amendment of this section by section 25 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

Notes to Decisions

Assessment of Damages.

In assessing damages for the taking of land for the widening of a street it is proper to assess the damages according to frontage, irrespective of whether the property is improved or not. City of Bismarck v. Casey, 77 N.D. 295, 43 N.W.2d 372, 1950 N.D. LEXIS 130 (N.D. 1950).

The determination of value is not a matter of formulas or artificial rules, but of sound judgment and discretion based upon a consideration of all of the relevant facts in a particular case. City of Bismarck v. Casey, 77 N.D. 295, 43 N.W.2d 372, 1950 N.D. LEXIS 130 (N.D. 1950).

Future speculative value on the theory that adjoining landowners would be forced or compelled to buy a right-of-way for ingress and egress to their property is an improper element to be taken into consideration in fixing the reasonable market value of land in a condemnation proceeding. City of Bismarck v. Casey, 77 N.D. 295, 43 N.W.2d 372, 1950 N.D. LEXIS 130 (N.D. 1950).

Collateral References.

Eminent domain: use or improvement of highway as establishing grade necessary to entitle abutting owner to compensation on subsequent change, 2 A.L.R.3d 985.

40-39-03. Grades of streets, alleys, and sidewalks — Established — Record — Changing — Liability.

The governing body, by ordinance, may establish the grade of all streets, alleys, and sidewalks in the municipality as the convenience of its inhabitants may require. A record of the grades, together with a profile thereof, shall be kept in the office of the city engineer, or of the city auditor, if the city has no engineer. If the municipality changes the grade of any street after it has been established, it shall be liable to the abutting property owners for any damage they may sustain by reason of any permanent improvements made by them to conform to the grade as first established.

Source: S.L. 1905, ch. 62, § 128; R.C. 1905, § 2762; S.L. 1907, ch. 262, § 3; C.L. 1913, §§ 3687, 3988; R.C. 1943, § 40-3903; S.L. 1967, ch. 323, § 194.

Notes to Decisions

Establishment of Grade.

The grade of a street is not established by usage or by establishment of the grade of the sidewalk, and until a grade has been adopted by the city, there can be no liability for change of the grade. Kenner v. Minot, 98 N.W.2d 901, 1959 N.D. LEXIS 111 (N.D. 1959).

Ordinance Required.

A city may change the grade of a street only by ordinance, and an order issued by the officers of the city to change the grade of the street without the adoption of an ordinance is an ultra vires act. Johnson v. Granville, 36 N.D. 91, 161 N.W. 721, 1917 N.D. LEXIS 168 (N.D. 1917).

40-39-04. Vacation of streets and alleys where sewers, water mains, pipes, and lines located — Conditions.

No public grounds, streets, alleys, or parts thereof over, under, or through which have been constructed, lengthwise, any sewers, water mains, gas, or other pipes, or telephone, electric, or cable television lines, of the municipality or the municipality’s grantees of the right of way therefor, may be vacated unless the sewers, mains, pipes, or lines have been abandoned and are not in use, or unless the grantee consents thereto, or unless perpetual easements for the maintenance of the sewers, water mains, gas, or other pipes, or telephone, electric, or cable television lines have been given. Any vacation of areas within which are located electric facilities, whether underground or aboveground, is subject to the continued right of location of such electric facilities in the vacated areas.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3904; S.L. 1949, ch. 277, § 1; 1957 Supp., § 40-3904; S.L. 1987, ch. 496, § 1.

40-39-05. Petition for vacation of streets, alleys, or public grounds — Contents — Verification.

No public grounds, streets, alleys, or parts thereof within a municipality shall be vacated or discontinued by the governing body except on a petition signed by all of the owners of the property adjoining the plat to be vacated. Such petition shall set forth the facts and reasons for such vacation, shall be accompanied by a plat of such public grounds, streets, or alleys proposed to be vacated, and shall be verified by the oath of at least one petitioner.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3905.

Notes to Decisions

Signature Requirements.

This section requires signatures on a petition to vacate a part of an alley only of those owners of property which adjoins that part of the alley which is sought to be vacated, and not those owners who may own property literally adjoining the plat to be vacated. State Bank v. Bismarck, 316 N.W.2d 85, 1982 N.D. LEXIS 232 (N.D. 1982).

Collateral References.

Private improvement of land dedicated but not used as street as estopping public rights, 36 A.L.R.4th 625.

40-39-06. Petition filed with city auditor — Notice published — Contents of notice.

If the governing body finds that the petition for vacation is in proper form and contains the requisite signatures, and if it deems it expedient to consider such petition, it shall order the petition to be filed with the city auditor who shall give notice by publication in the official newspaper of the municipality at least once each week for four weeks. The notice shall state that a petition has been filed and the object thereof, and that it will be heard and considered by the governing body or a committee thereof on a certain specified day which shall be not less than thirty days after the first publication of the notice.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3906; S.L. 1967, ch. 323, § 195.

Notes to Decisions

Defective Petition and Publication.

Where a petition for the vacation of a public alley was defective in its description of the exact location of the alley in question, and where the resolution published by the commissioners, as required by N.D.C.C. § 40-39-08, and the related affidavit of publication contained the same defective description, action taken by the governing body vacating the alley after a hearing had no legal effect since the rights of the public had not been sufficiently protected in the proceedings. Smith v. Anderson, 144 N.W.2d 530, 1966 N.D. LEXIS 107 (N.D. 1966).

40-39-07. Hearing on petition — Passage of resolution declaring vacation by governing body.

The governing body, or such committee as may be appointed by it, shall investigate and consider the matter set forth in the petition specified in section 40-39-05 and, at the time and place specified in the notice, shall hear the testimony and evidence of persons interested. After hearing the testimony and evidence or upon the report of the committee favoring the granting of the petition, the governing body, by a resolution passed by a two-thirds vote of all its members, may declare the public grounds, streets, alleys, or highways described in the petition vacated upon such terms and conditions as it shall deem just and reasonable.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3907.

Notes to Decisions

Exclusive Jurisdiction.

The power to vacate a public way, located within the limits of an incorporated city, is vested exclusively in the governing body of the city. Casey v. Corwin, 71 N.W.2d 553, 1955 N.D. LEXIS 122 (N.D. 1955).

40-39-08. Resolution to be published, filed, and recorded — Effect.

Before the resolution declaring the vacation of a public ground, street, or alley shall go into effect, it shall be published as in the case of ordinances. A transcript of the resolution, duly certified by the city auditor, shall be filed for record and duly recorded in the office of the recorder of the county in which the municipality is situated, and such resolution thereafter shall have the effect of conveying to the abutting property owners all of the right, title, and interest of the municipality to the property vacated.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3908; S.L. 1967, ch. 323, § 196; 2001, ch. 120, § 1.

Notes to Decisions

Defective Petition and Publication.

Where a petition for the vacation of a public alley was defective in its description of the exact location of the alley in question, and where the resolution published by the commissioners, as required by this section, and the related affidavit of publication contained the same defective description, action taken by the governing body vacating the alley after a hearing had no legal effect since the rights of the public had not been sufficiently protected in the proceedings. Smith v. Anderson, 144 N.W.2d 530, 1966 N.D. LEXIS 107 (N.D. 1966).

Effect of Filing.

The resolution of the city commissioners declaring the vacation of a street, when filed, is, in legal effect, an amendment of the plat of the addition and all who buy thereafter take with notice of the vacation. Welsh v. Monson, 79 N.W.2d 155, 1956 N.D. LEXIS 153 (N.D. 1956).

Necessity of Publication.

Publication of the resolution is not jurisdictional to the right of the city to institute condemnation proceedings. City of Lidgerwood v. Michalek, 12 N.D. 348, 97 N.W. 541, 1903 N.D. LEXIS 50 (N.D. 1903).

Where a city was threatening to block a street giving access to a park, the park district was not required to wait until its rights were actually invaded but it could bring an action for declaratory judgment that the resolution vacating the street was void for want of publication. Park Dist. v. Fargo, 129 N.W.2d 828, 1964 N.D. LEXIS 121 (N.D. 1964).

40-39-09. Expenses for vacating streets, alleys, and public ways — Deposit required.

All expenses incurred in vacating any public grounds, street, or alley shall be paid by the petitioners, who shall deposit with the city auditor such sum as may be necessary before any such expense is incurred. The amount to be deposited shall be determined by the governing body, and any part thereof not used for such expenses shall be returned.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3909.

40-39-10. Aggrieved person may appeal to district court.

Any person aggrieved by the decision of the governing body granting the vacation of any public grounds, street, or alley, within fifteen days after the publication of the resolution, may appeal to the district court of the county in accordance with the procedure provided in section 28-34-01. The judgment of the court therein is final.

Source: S.L. 1887, ch. 73, art. 15, § 13; R.C. 1895, § 2277; R.C. 1899, § 2277; S.L. 1905, ch. 62, § 129; R.C. 1905, § 2763; S.L. 1907, ch. 262, § 4; 1911, ch. 78, § 1; C.L. 1913, §§ 3688, 3989; S.L. 1927, ch. 190, § 1; R.C. 1943, § 40-3910; S.L. 1989, ch. 83, § 16.

CHAPTER 40-40 Municipal Budget Law

40-40-01. Short title.

This chapter shall be known and cited as the municipal budget law.

Source: S.L. 1925, ch. 169, § 1; C.L. 1913, 1925 Supp., § 3684a1; R.C. 1943, § 40-4001.

Notes to Decisions

Public Utility Financing.

Statutes pertaining to city budgets and appropriations are inapplicable to payments for the purchase of a public utility exclusively out of its net earnings. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-40-02. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Governing body” means the city council, board of city commissioners, park commissioners, or city manager.
  2. “Municipality” means any city or park district in this state.

Source: S.L. 1925, ch. 169, § 2; C.L. 1913, 1925 Supp., § 3684a2; S.L. 1927, ch. 187, § 1; R.C. 1943, § 40-4002; S.L. 1967, ch. 323, § 197.

40-40-03. Fiscal year of municipality.

The fiscal year of each municipality shall commence on the first day of January of each year and shall terminate on the thirty-first day of December of that same year.

Source: S.L. 1887, ch. 73, art. 14, § 1; R.C. 1895, § 2261; R.C. 1899, § 2261; S.L. 1905, ch. 62, § 119; R.C. 1905, § 2752; C.L. 1913, § 3676; S.L. 1925, ch. 169, § 4; 1925 Supp., § 3684a4; S.L. 1927, ch. 188, § 1; R.C. 1943, § 40-4003; S.L. 1981, ch. 420, § 1.

40-40-04. Municipality to prepare preliminary budget statement.

The governing body of each municipality, annually on or before August tenth, shall make an itemized statement known as the preliminary budget statement showing the amounts of money which, in the opinion of the governing body, will be required for the proper maintenance, expansion, or improvement of the municipality during the year.

Source: C.L. 1913, 1925 Supp., § 3684a3; S.L. 1925, ch. 169, § 3; S.L. 1939, ch. 175, § 1; 1941, ch. 200, § 1; R.C. 1943, § 40-4004; S.L. 1971, ch. 391, § 2; 1977, ch. 105, § 2; 1981, ch. 420, § 2; 1993, ch. 108, § 2; 2001, ch. 122, § 8; 2017, ch. 411, § 2, eff for taxable years beginning after December 31, 2017.

40-40-05. Contents of preliminary budget statement.

The preliminary budget must include a detailed breakdown of the estimated revenues and appropriations requested for the ensuing year for the general fund, each special revenue fund, and each debt service fund of the municipality. The revenue and expenditure items for the preceding year and estimates of the revenue and expenditures for the current year must be included for each fund to assist in determining the estimated revenues and appropriation requested for the ensuing year. The budget must also include any transfers in or out and the beginning and ending fund balance for each of the funds. The budget must be prepared on the same basis of accounting used by the municipality for its annual financial reports.

The amount paid for salaries may be shown as a single line item expenditure in each fund. There must be on file with the governing body and open to public inspection a detailed statement showing the names of all persons receiving salaries, the annual amount paid to each person, and the fund charged.

While preparing the budget, municipal officials may include an expenditure item for equipment replacement, the amount of which may not exceed the total of the anticipated reasonable costs of depreciation for the ensuing year, based on current costs, of all equipment owned by the municipality. The expenditure for equipment replacement must be placed in a separate special revenue fund. No expenditure may be paid from the equipment replacement fund except for equipment purchases to replace equipment that is worn out, damaged, or obsolete. The term “equipment” does not include structures or building fixtures.

While preparing the budget, municipal officials may include an expenditure item for a building reserve fund, the amount of which may not exceed the total of the anticipated reasonable costs of depreciation for the ensuing year, based on the original costs of all buildings and structures owned by the city. The expenditure for building reserve must be placed in a separate capital projects fund. No expenditures may be paid from the building reserve fund except for the purchase, construction, or remodeling of buildings or structures that are obsolete, substandard, or generally unfit for public use.

Source: S.L. 1925, ch. 169, § 5; C.L. 1913, 1925 Supp., § 3684a5; S.L. 1931, ch. 199, § 1; R.C. 1943, § 40-4005; S.L. 1949, ch. 278, § 1; 1957, ch. 287, § 1; 1957 Supp., § 40-4005; S.L. 1967, ch. 323, § 198; 1983, ch. 464, § 1; 1985, ch. 465, § 1; 1987, ch. 497, § 1; 1993, ch. 108, § 3.

Notes to Decisions

City Sales Tax Revenue.

The contemplated use of city sales tax revenue to make annual lease payments on city facilities under a sale-leaseback-purchase transaction, which provided funds for improvements to the facilities, did not violate this section, which deals with the preparation of preliminary municipal budget statements. Haugland v. Bismarck, 429 N.W.2d 449, 1988 N.D. LEXIS 258 (N.D. 1988).

DECISIONS UNDER PRIOR LAW

Group A Contingent Expenses.

Appropriations for contingent expenses, not otherwise provided for, include payments to an attorney hired by city council to assist city attorney in pending litigation affecting the interests of the city. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

Contingent expenses are includable in group A of subsection 2, and include all anticipated future events which are not certain to occur. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

40-40-06. Notice of preliminary budget statement — Contents — How given.

  1. On or before August tenth of each year, after the governing body has prepared the preliminary budget statement, the auditor of the municipality shall:
    1. Provide the county auditor with a copy of the preliminary budget statement.
    2. Set a public budget hearing date no earlier than September seventh and no later than October seventh for the purpose of adopting the final budget and making the annual tax levy.
    3. Provide notice of the public budget hearing date to the county auditor.
  2. For municipalities anticipating levying less than one hundred thousand dollars in the current year, notice must:
    1. Contain a statement of the total proposed expenditures for each fund in the preliminary budget, but need not contain any detailed statement of the proposed expenditures;
    2. Be published at least once, not less than six days prior to the budget hearing, in a newspaper published in the municipality, if there is one, and if no newspaper is published in the municipality, the notice must be published not less than six days prior to the meeting in the official city newspaper as provided by section 40-01-09; and
    3. Provide that any taxpayer may appear and discuss with the governing body any item of proposed expenditures or may object to any item or amount.

Source: C.L. 1913, 1925 Supp., § 3684a6; S.L. 1925, ch. 169, § 6; S.L. 1927, ch. 189, § 1; R.C. 1943, § 40-4006; S.L. 1967, ch. 323, § 199; 1971, ch. 391, § 3; 1975, ch. 381, §§ 1, 2; 1977, ch. 375, § 7; 1981, ch. 420, § 3; 1993, ch. 108, § 4; 2005, ch. 349, § 1; 2017, ch. 411, § 3, eff for taxable years beginning after December 31, 2017.

Effective Date.

The 2005 amendment of this section by section 1 of chapter 349, S.L. 2005 became effective August 1, 2005.

40-40-07. Copy of preliminary budget sent to county auditor — Open to inspection. [Repealed]

Repealed by S.L. 1965, ch. 291, § 1.

40-40-08. Hearing of protests and objections — Changes in preliminary budget — Preparation of final budget — Contents.

The governing body shall meet at the time and place set pursuant to section 40-40-06 and shall hear any and all protests or objections to the items or amounts set forth in the preliminary budget statement. At the hearing, the governing body shall make any changes in the items or amounts shown on the preliminary budget statement as it may deem advisable except as limited in this chapter, and shall prepare the final budget, which must consist of the preliminary budget with the addition of columns showing:

  1. The final appropriations for the various expenditure items specified in the preliminary budget statement. The final appropriation of any fund total may not exceed the total amount requested in the preliminary budget.
  2. The estimated amount of unencumbered cash on hand at the end of the current year may not include cash or investments of the equipment replacement fund as provided in section 40-40-05.
  3. The levy amount determined by subtracting the total resources from the total appropriations and cash reserve for each fund. The governing body may increase the levy an additional five percent for delinquent tax collections.
  4. The certificate of levy which includes a summary of the amount levied for each fund and the total amount levied.

Source: C.L. 1913, 1925 Supp., § 3684a7; S.L. 1925, ch. 169, § 7; S.L. 1927, ch. 189, § 2; R.C. 1943, § 40-4008; S.L. 1949, ch. 278, § 2; 1957 Supp., § 40-4008; S.L. 1983, ch. 464, § 2; 1993, ch. 108, § 5; 2017, ch. 411, § 4, eff for taxable years beginning after December 31, 2017.

DECISIONS UNDER PRIOR LAW

Journal.

The yeas and nays were required to be entered at large in the journal, when voting upon all propositions for the appropriation or expenditure of the money of the city. Shattuck v. Smith, 6 N.D. 56, 69 N.W. 5 (N.D. 1896).

40-40-09. Determination of amount to be levied — Adoption of levy — Limitations.

After completing the final budget on or before October seventh, the governing body shall proceed to make the annual tax levy in an amount sufficient to meet the expenses for the ensuing year as determined at the budget meeting. In determining the amount required to be levied, the governing body first shall ascertain its net current resources by adding the estimated revenue for the ensuing year other than property taxes, any transfers in, and the estimated fund balance at the end of the current year. Then the governing body shall ascertain its appropriation and reserve by adding the final appropriation for the ensuing year, any transfers out, and the cash reserve. The net current resources must be deducted from the appropriation and reserve and the balance shall be considered the amount that is required to be raised by taxation during the ensuing year. The determination of the amount of the levy that can be collected within the ensuing year must be made by the governing body based upon the past experience of the district. The levy as finally adopted must be approved by a majority vote of the members of the governing body and noted in the proceedings of the governing body. The amount levied is subject to the limitations as prescribed by the laws of this state and is subject to the further limitation that the amount may not exceed the levy requested by the municipality. The levy adopted must appropriate in specific amounts the money necessary to meet the expenses and liabilities of the municipality.

Source: S.L. 1887, ch. 73, art. 9, § 7, art. 14, § 2; 1893, ch. 33, § 3; R.C. 1895, §§ 2190, 2262; R.C. 1899, §§ 2190, 2262; S.L. 1905, ch. 62, §§ 120, 123; R.C. 1905, §§ 2753, 2756; C.L. 1913, §§ 3677, 3680; S.L. 1925, ch. 169, § 8; 1925 Supp., § 3684a8; S.L. 1927, ch. 188, §§ 2, 3; 1927, ch. 189, § 3; R.C. 1943, § 40-4009; S.L. 1983, ch. 464, § 3; 1993, ch. 108, § 6; 2005, ch. 349, § 2.

Effective Date.

The 2005 amendment to this section by section 2 of chapter 349, S.L. 2005, became effective August 1, 2005.

Cross-References.

Judgment against municipality, additional tax, see § 40-43-01.

Tax levy limitations in cities, see §§ 57-15-07, 57-15-08, 57-15-10.

Notes to Decisions

Appropriation Bill.

The annual appropriation bill should be adopted either prior to or at the time of the annual tax levy, such levy being based upon the annual appropriation bill for the year in which it is made. Engstad v. Dinnie, 8 N.D. 1, 76 N.W. 292, 1898 N.D. LEXIS 3 (N.D. 1898).

Invalid Levy.

Where city charter gave mayor a veto power as to resolutions and ordinances passed by city council, failure of mayor to approve tax levy resulted in its invalidity. O'Neil v. Tyler, 3 N.D. 47, 53 N.W. 434, 1892 N.D. LEXIS 9 (N.D. 1892).

City levies must be based upon the annual appropriation bill, and failure of the record to show the individual vote of councilmen does not render the levy void in its entirety. Douglas v. Fargo, 13 N.D. 467, 101 N.W. 919, 1904 N.D. LEXIS 80 (N.D. 1904).

Levy by Ordinance.

Taxes must be levied by ordinance. Engstad v. Dinnie, 8 N.D. 1, 76 N.W. 292, 1898 N.D. LEXIS 3 (N.D. 1898).

Library Purposes.

Tax authorized herein did not include tax for libraries authorized by N.D.C.C. § 40-38-02. State ex rel. Arnot v. Flaherty, 45 N.D. 549, 178 N.W. 790, 1920 N.D. LEXIS 160 (N.D. 1920).

Presumption of Validity.

The presumption is that a tax is valid, and this presumption extends to every act upon which the tax in any measure depends. Farrington v. New Eng. Inv. Co., 1 N.D. 102, 45 N.W. 191, 1890 N.D. LEXIS 13 (N.D. 1890), limited, O'Neil v. Tyler, 3 N.D. 47, 53 N.W. 434, 1892 N.D. LEXIS 9 (N.D. 1892).

Tax to Pay Judgment.

Where the statute made it the duty of a city council to levy a tax to pay a final judgment against the city, the federal district court can issue a writ of mandamus to compel the city to levy a tax for the payment of general judgments against the city, whether or not the judgments should have been general judgments. City of Mohall v. First Nat'l Bank, 105 F.2d 315, 1939 U.S. App. LEXIS 3318 (8th Cir. Mo.), cert. denied, 308 U.S. 587, 60 S. Ct. 110, 84 L. Ed. 491, 1939 U.S. LEXIS 421 (U.S. 1939).

Under the statute making it the duty of a city council to levy a tax to pay a final judgment recovered against a city, the city cannot go behind the judgment and determine whether or not it should have been entered. City of Mohall v. First Nat'l Bank, 105 F.2d 315, 1939 U.S. App. LEXIS 3318 (8th Cir. Mo.), cert. denied, 308 U.S. 587, 60 S. Ct. 110, 84 L. Ed. 491, 1939 U.S. LEXIS 421 (U.S. 1939).

When Statute Not Applicable.

This statute does not apply to the expense incurred for improvements under special assessment statutes. Pine Tree Lumber Co. v. City of Fargo, 12 N.D. 360, 96 N.W. 357 (1903), decided prior to the enactment of Session Laws 1905, Chapter 62 (see now N.D.C.C. § 40-22-36).

Statutes pertaining to city budgets and appropriations are inapplicable to payments for the purchase of a public utility exclusively out of its net earnings. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

DECISIONS UNDER PRIOR LAW

Estimates.

Under C.L. 1887, § 922, estimates did not have to be in writing nor entered in the minutes of the council; nor preserved in the auditor’s office. Fisher v. Betts, 12 N.D. 197, 96 N.W. 132, 1903 N.D. LEXIS 20 (N.D. 1903).

Tax Resolution.

A resolution levying a general city tax was not a proposition to create any liability against the city, or for the appropriation or expenditure of its money, requiring the taking of yeas and nays. Shattuck v. Smith, 6 N.D. 56, 69 N.W. 5 (N.D. 1896).

Tax to Pay Judgment.

Under C.L. 1913, § 3680 (section 40-40-09), it was the duty of a city to impose a sufficient tax to pay any final judgment recovered against it. Appeal of Cunningham, 63 N.D. 62, 245 N.W. 896, 1932 N.D. LEXIS 136 (N.D. 1932).

40-40-10. Certified copies of levy and final budget sent to county auditor.

Immediately after the completion of the final budget and the adoption of the annual tax levy by the governing body of a municipality in accordance with the provisions of this chapter, and in no case later than October tenth, the auditor of the municipality shall send to the county auditor a certified copy of the levy as adopted and a certified copy of the final budget.

Source: Pol. C. 1877, ch. 24, § 30; R.C. 1895, § 2373; R.C. 1899, § 2373; R.C. 1905, § 2872; S.L. 1911, ch. 294, § 4; C.L. 1913, § 3874; S.L. 1925, ch. 169, § 8; 1925 Supp., § 3684a9; S.L. 1927, ch. 189, § 3; 1927, ch. 268, § 1; 1939, ch. 175, § 2; 1941, ch. 200, § 2; R.C. 1943, § 40-4010; S.L. 1961, ch. 280, § 1; 1967, ch. 323, § 200; 1977, ch. 105, § 3; 1981, ch. 420, § 4; 2009, ch. 349, § 1.

Effective Date.

The 2009 amendment of this section by section 1 of chapter 349, S.L. 2009 became effective August 1, 2009.

40-40-11. County auditor to calculate and reduce tax rates — Extending tax levy.

After the county auditor has available the data showing the total taxable valuation of a municipality, the auditor shall calculate the necessary tax rates to produce the sums called for in the final budget. If the auditor finds that any amount or amounts called for in the levy cannot be produced by a tax rate within the limitation prescribed by the laws of this state, the auditor shall reduce the amount so that it can be produced by a tax rate within legal limitations. The auditor shall extend the levy, including the levy for judgments against the municipality, upon the tax lists of the county for the current year against each description of real property and all personal property within the municipality in the same manner and with the same effect as other taxes are extended. The county auditor shall notify the governing body of the municipality at once of any reductions made in the levy.

Source: S.L. 1887, ch. 73, art. 9, § 7; 1887, ch. 142, § 3; 1893, ch. 33, § 3; R.C. 1895, §§ 2190, 2495; R.C. 1899, §§ 2190, 2495; S.L. 1905, ch. 62, § 123; R.C. 1905, §§ 2756, 3008; S.L. 1911, ch. 294, § 5; C.L. 1913, §§ 3680, 3875, 4046; S.L. 1925, ch. 169, § 8; 1925 Supp., § 3684a8; S.L. 1927, ch. 188, § 3; 1927, ch. 189, § 3; 1927, ch. 268, § 2; 1939, ch. 175, § 2; 1941, ch. 200, § 2; R.C. 1943, § 40-4011; S.L. 1983, ch. 593, § 25.

Cross-References.

Judgment against municipality, additional tax, see § 40-43-01.

40-40-12. County auditor to transmit annual tax levy and final budget to state auditor. [Repealed]

Repealed by S.L. 2001, ch. 122, § 11.

40-40-13. County treasurer to collect municipal taxes.

The county treasurer shall collect all municipal taxes, together with the interest and penalties thereon, if any, in the same manner as the general taxes are collected, and shall pay over to the city auditor, on or before the tenth working day of each calendar month, all taxes so collected during the preceding month, with interest and penalties collected thereon.

Source: S.L. 1887, ch. 73, art. 9, § 8; 1887, ch. 142, § 4; 1889, ch. 29, § 1; 1890, ch. 100, § 3; 1893, ch. 116, § 1; R.C. 1895, §§ 2191, 2496; S.L. 1897, ch. 102, § 1; R.C. 1899, §§ 2191, 2496; S.L. 1901, ch. 149, § 1; 1905, ch. 62, § 124; R.C. 1905, §§ 2757, 3009; S.L. 1911, ch. 294, § 6; C.L. 1913, §§ 3682, 3876, 4047; R.C. 1943, § 40-4013; S.L. 1967, ch. 323, § 201; 1975, ch. 97, § 3.

40-40-14. Municipal taxes collected to be credited to appropriate funds.

The city auditor shall apportion the amounts received for taxes from the county treasurer and shall credit each fund with its proportion or share according to the levy made by the governing body of the municipality. The county treasurer, at the time of paying over such funds, shall furnish the city auditor with a statement of the amount collected for each year separately, and such amount shall be credited to the proper funds for the year for which it was collected.

Source: S.L. 1887, ch. 73, art. 9, § 9; R.C. 1895, § 2192; R.C. 1899, § 2192; S.L. 1905, ch. 62, § 125; R.C. 1905, § 2758; C.L. 1913, § 3683; R.C. 1943, § 40-4014; S.L. 1967, ch. 323, § 202.

40-40-15. Expenditures made or liabilities incurred beyond appropriation — Joint and several liability of members of governing body.

Except as otherwise provided in section 40-40-18, no municipal expenditure may be made nor liability incurred, and no bill may be paid for any purpose in excess of the appropriation made therefor in the final budget. Expenditures made, liabilities incurred, or warrants issued in excess of the appropriations are a joint and several liability of the members of the governing body who authorized the making, incurring, or issuing thereof or who were present when they were authorized and did not vote against authorizing the same.

Source: S.L. 1925, ch. 169, § 9; C.L. 1913, 1925 Supp., § 3684a9; R.C. 1943, § 40-4015; S.L. 1989, ch. 69, § 48.

Notes to Decisions

Loan from County.

Where county commissioners paid out portion of paving expense for the city upon the agreement that one-fourth of it would be returned from the large portion of the expense donated by the state and federal government, it is neither immoral, unjust, nor inequitable for the county to have its money returned. Stark County v. Dickinson, 56 N.D. 317, 56 N.D. 371, 217 N.W. 525, 1928 N.D. LEXIS 222 (N.D. 1928).

Mandatory Statute.

The provisions of this statute are mandatory and prohibitive and no contract requiring a disbursement of city funds can be made by the city council and no expense can be incurred by any city officer or officers unless a previous appropriation has been made covering the expense involved. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-40-16. State’s attorney to sue for excessive expenditures.

Upon good and sufficient information presented to the state’s attorney by any taxpayer in the municipality or obtained from any other source, the state’s attorney of the county in which the municipality lies shall bring suit to recover from the members of the governing body, jointly and severally, the amount of expenditures, payments, or warrants in excess of the amount shown in any group of the final budget.

Source: S.L. 1925, ch. 169, § 9; C.L. 1913, 1925 Supp., § 3684a9; R.C. 1943, § 40-4016.

40-40-17. Transfer from other items of appropriation when appropriation insufficient. [Repealed]

Repealed by S.L. 1987, ch. 497, § 3.

40-40-18. Amounts taken from various funds and borrowings to meet emergency — Vote required — Contents of resolution.

Upon the happening of any emergency caused by the destruction or impairment of any municipal property necessary for the conduct of the affairs of the municipality, or by epidemic or threatened epidemic, or by the entry by a court of competent jurisdiction of a judgment for damages against the municipality, the governing body may meet any such emergency in the manner provided in this section. If there is a sufficient unexpended balance in any fund or funds except funds established for debt retirement to provide for the emergency, the governing body, by a resolution adopted by the vote of two-thirds of the members present at any meeting, or, if the governing body consists of less than three members, by a unanimous vote of all the members thereof, may take the amount necessary to meet the emergency from any such fund or funds. If the municipality has not reached its debt limit, the governing body, by the vote required to take moneys from a designated fund, may order its executive officer and financial committee to borrow an amount sufficient to meet the emergency. Any amount so borrowed must be for a time not to extend beyond the close of the fiscal year, and such amount and the interest thereon must be a part of the next budget. The resolution authorizing any emergency expenditure must recite the facts showing the existence of an emergency of the kind specified in this section.

Source: S.L. 1887, ch. 73, art. 14, § 3; R.C. 1895, § 2263; R.C. 1899, § 2263; S.L. 1905, ch. 62, § 121; R.C. 1905, § 2754; C.L. 1913, § 3678; S.L. 1925, ch. 169, § 11; 1925 Supp., § 3684a11; R.C. 1943, § 40-4018; S.L. 1987, ch. 497, § 2.

Cross-References.

Judgment against municipality, additional tax, see § 40-43-01.

Tax levy for emergency purposes, see § 57-15-48.

Notes to Decisions

Employment of Special Attorney.

Contract for employment of special assistant to the city attorney does not come within the emergencies enumerated in this statute. Scott v. Jamestown, 56 N.D. 454, 217 N.W. 668, 1928 N.D. LEXIS 231 (N.D. 1928).

40-40-19. Liabilities may be incurred after July first and before a new appropriation is made — Exception. [Repealed]

Repealed by S.L. 1983, ch. 464, § 5.

40-40-20. Contracts made prior to appropriation prohibited — Contracts for water for fire protection excepted.

Except as otherwise provided in this chapter or in section 40-05-05, no contract shall be made by the governing body of a municipality and no expense shall be incurred by any officers or departments of the corporation unless there shall have been a previous appropriation providing for such expense. The governing body may enter into contracts with persons, associations, corporations, or limited liability companies for the furnishing of water for fire protection to the municipality, and in case such contract extends over a term of years, it shall be unnecessary that a previous appropriation shall have been made except to cover the amounts payable under the contract for the first year thereof. Such a contract shall not be made for a longer period than twenty years.

Source: S.L. 1887, ch. 73, art. 14, § 4; R.C. 1895, § 2264; R.C. 1899, § 2264; S.L. 1905, ch. 62, § 122; 1905, ch. 63, § 1; R.C. 1905, § 2755; C.L. 1913, § 3679; R.C. 1943, § 40-4020; S.L. 1993, ch. 54, § 106.

Notes to Decisions

Mandatory Statute.

This provision is mandatory and prohibitive and no contract can be made and no expense incurred unless previous appropriation has been made therefor. Roberts v. Fargo, 10 N.D. 230, 86 N.W. 726, 1901 N.D. LEXIS 29 (N.D. 1901).

Premature Objection.

Objection of taxpayer to contract with United States to furnish supply of water based on theory that no appropriation has yet been made for payments thereunder, is premature when the contract has not yet been entered into. Harding v. Dickinson, 76 N.D. 71, 33 N.W.2d 626, 1948 N.D. LEXIS 60 (N.D. 1948).

Utility Purchase.

This statute is inapplicable to payments for the purchase of a public utility exclusively out of its net earnings. Lang v. Cavalier, 59 N.D. 75, 228 N.W. 819, 1930 N.D. LEXIS 126 (N.D. 1930).

40-40-21. Balance at end of fiscal year to become part of unappropriated balance — When special appropriation to lapse.

At the end of the fiscal year, the balance to the credit of each annual appropriation becomes a part of the general unappropriated balance in the municipal treasury, except that the unused balance to the credit of the equipment replacement fund provided for in section 40-40-05 does not become a part of the general unappropriated balance in the municipal treasury, but no special appropriation lapses until the work for which it was made has been completed, the bills paid, and the accounts closed. The governing body of a city may elect, at the end of the fiscal year, to carry over the unencumbered cash balance in the general fund or other budgeted funds and designate the balances for subsequent years.

Source: S.L. 1925, ch. 169, § 13; C.L. 1913, 1925 Supp., § 3684a13; S.L. 1943, ch. 192, § 1; R.C. 1943, § 40-4021; S.L. 1949, ch. 278, § 3; 1957 Supp., § 40-4021; S.L. 1983, ch. 464, § 4; 1993, ch. 405, § 1.

CHAPTER 40-41 Board of Budget Review [Repealed]

[Repealed by S.L. 1973, ch. 330, § 3]

CHAPTER 40-42 Claims for Injuries on Streets

40-42-01. Claim against municipality for damages arising from defective streets, sidewalks, or bridges must be filed. [Repealed]

Repealed by S.L. 1977, ch. 303, § 18.

Note.

Section 16 of S.L. 1977, ch. 303 provided:

“If a claim against a municipality was filed in the office of the city auditor in accordance with section 40-42-01 after April 8, 1975, and prior to July 1, 1977, and the cause of action against the municipality was dismissed on the basis of failure to file the claim with the county auditor in accordance with section 4 of chapter 295 of the 1975 Session Laws of North Dakota, such claim is preserved and may be filed in the office of the city auditor within ninety days after the effective date of this Act. Notwithstanding sections 40-42-02 and 40-42-03, the time limits for rejecting a claim and for bringing an action shall be determined on the basis of the date a claim was filed as authorized by this section”.

For present provisions, see ch. 32-12.1.

Collateral References.

Comment Note: Governmental Liability for Failure to Reduce Vegetation Obscuring View at Railroad Crossing or at Street or Highway Intersection. 50 A.L.R.6th 95.

40-42-02. Filing of claim and rejection thereof conditions precedent to bringing action against municipality. [Repealed]

Repealed by S.L. 1977, ch. 303, § 18.

Note.

For present provisions, see ch. 32-12.1.

40-42-03. Time limitation on bringing of action. [Repealed]

Repealed by S.L. 1977, ch. 303, § 18.

Note.

For present provisions, see ch. 32-12.1.

40-42-04. Proof on trial to conform to claim filed with municipality.

Upon the trial of an action for the recovery of damages by reason of an injury from the defective, unsafe, dangerous, or obstructed condition of any street, crosswalk, sidewalk, culvert, or bridge, the claimant shall not be permitted to prove any time, place, cause, manner, or extent of the injury complained of differing from that specified in the claim filed with the municipality, nor to recover damages in excess of the amount demanded in such claim.

Source: S.L. 1893, ch. 31, § 2; R.C. 1895, § 2172; R.C. 1899, § 2172; S.L. 1905, ch. 62, § 72; R.C. 1905, § 2703; C.L. 1913, § 3627; R.C. 1943, § 40-4204; S.L. 1981, ch. 91, § 35.

Notes to Decisions

Damages Recoverable.

Where plaintiff brought negligence action under former N.D.C.C. § 40-42-01 against city for injury received in a sidewalk fall, which section required verified claim to be filed with city within ninety days of the injury, amount of damages recoverable by plaintiff was not limited to exact dollar amount stated in verified claim filed with the city, but included those damages resulting from the alleged negligence of the city which were reasonably certain to occur even though the exact amount could not be precisely ascertained within the time the verified claim was required to be filed with the city; however, to be recoverable, the damages were required to be stated with sufficient precision, without stating the exact dollar amount, in the claim according to information reasonably available at the time to put the city on adequate notice of future damages. Skoog v. Grand Forks, 301 N.W.2d 404, 1981 N.D. LEXIS 250 (N.D. 1981).

Variance.

No variance between pleading and proof of exact place of injury and place designated in notice under former section 40-42-01 was allowed. Trost v. Casselton, 8 N.D. 534, 79 N.W. 1071, 1899 N.D. LEXIS 43 (N.D. 1899).

Collateral References.

Variance between notice of claim against municipality and proof as regards cause, manner, or locality of accident, 52 A.L.R.2d 966.

Sufficiency of notice of claim against municipality with respect to nature of defect and cause of accident, 62 A.L.R.2d 397.

Sufficiency of notice of claim against municipality as regards identity and name of claimant, 63 A.L.R.2d 911.

Amount of damages stated in notice of claim against municipality or county as limiting amount of recovery, 24 A.L.R.3d 965.

Liability of highway authorities arising out of motor vehicle accident allegedly caused by failure to erect or properly maintain traffic control device at intersection, 34 A.L.R.3d 1008.

Liability of governmental entity or public officer for personal injury or damages arising out of vehicular accident due to negligent or defective design of a highway, 45 A.L.R.3d 875.

Liability, in motor vehicle related cases, of governmental entity for injury or death resulting from failure to repair pothole in surface of highway or street, 98 A.L.R.3d 101.

Liability, in motor vehicle related cases, of governmental entity for injury or death resulting from defect or obstruction on roadside parkway or parking strip, 98 A.L.R.3d 439.

Liability of governmental unit or private owner or occupant of land abutting highway for injuries or damage sustained when motorist strikes tree or stump on abutting land, 100 A.L.R.3d 510.

Liability, in motor vehicle-related cases, of governmental entity for injury or death resulting from design, construction, or failure to warn of narrow bridge, 2 A.L.R.4th 635.

Government tort liability as to highway median barriers, 58 A.L.R.4th 559.

Insufficiency of notice of claim against municipality as regards statement of place where accident occurred, 69 A.L.R.4th 484.

Sufficiency of notice of claim against local political entity as regards time when accident occurred, 57 A.L.R.5th 689.

40-42-05. Nonliability of municipality for damages caused by snow and ice on sidewalks — Exception — Actual knowledge required.

All municipalities in this state shall be exempt from all liability to any person for damages for injuries suffered or sustained by reason of the accumulation of snow and ice upon the sidewalks within the municipality unless actual knowledge of the defective, unsafe, or dangerous condition of the sidewalk or crosswalk shall have been possessed by the executive officer, governing body, police officer, or marshal of the municipality at least forty-eight hours previous to the damage or injury. Actual knowledge shall not be presumed from the fact of the existence of the condition, but it shall be proved as an independent fact. No municipality in this state shall be liable in damages for any injury occasioned through the mere slippery condition of the sidewalk or crosswalk due to the presence of frost or loose snow thereon.

Source: S.L. 1915, ch. 70, § 1; C.L. 1913, 1925 Supp., § 3696a; R.C. 1943, § 40-4205.

Notes to Decisions

Burden of Proof.

Plaintiff seeking recovery under this section was not required to prove that city had knowledge of accumulation of ice and snow in the exact form in which it existed at moment of plaintiff’s injury; to require that the “very same” compacted ice and snow be present on sidewalk at time of injury as existed twenty-one days prior thereto when city police officer observed the accumulation was an overly restrictive view of the statute. Haugen v. Grand Forks, 187 N.W.2d 68, 1971 N.D. LEXIS 188 (N.D. 1971).

Governmental Immunity Abolished.

The doctrine of governmental immunity from tort liability committed in the execution of the activity is abolished, and governmental bodies, other than the state government, are subject to suits for damages by individuals injured by negligent or wrongful acts or omissions of their agents and employees, whether engaged in a proprietary or governmental function. Kitto v. Minot Park Dist., 224 N.W.2d 795, 1974 N.D. LEXIS 133 (N.D. 1974).

Police Officer’s Knowledge.

Where there was no evidence that police officer knew of icy condition on sidewalk, even though he lived in the vicinity, there was no notice to the municipality. Malherek v. Fargo, 49 N.D. 522, 191 N.W. 951, 1922 N.D. LEXIS 83 (N.D. 1922).

Steps Adjoining Sidewalk.

The city is not liable for injuries to person who falls on steps leading from a public sidewalk to a private building. Ellingson v. Leeds, 40 N.D. 415, 169 N.W. 85, 1918 N.D. LEXIS 103 (N.D. 1918).

DECISIONS UNDER PRIOR LAW

Notice.

Notice of the unsafe condition of a sidewalk not caused by snow and ice could be actual or constructive. Anderson v. Jamestown, 50 N.D. 531, 196 N.W. 753, 1923 N.D. LEXIS 2 (N.D. 1923).

Collateral References.

Deliberate act: liability of municipal corporation to person injured in fall because of slippery substance such as paint or oil deliberately placed upon surface of street or sidewalk, 81 A.L.R.2d 1194.

Bicycle, tricycle, or similar vehicle, liability of municipality for injury or death from defects or obstructions in sidewalk to one riding thereon, 88 A.L.R.2d 1423.

Snow removal operations as within doctrine of governmental immunity from tort liability, 92 A.L.R.2d 796.

Liability, in motor vehicle related cases, of governmental entity for injury or death resulting from ice and snow on surface of highway or street, 97 A.L.R.3d 11.

Liability for injury or damage caused by snowplowing or snow removal operations and equipment, 83 A.L.R.4th 5.

Sufficiency of notice of claim against local political entity as regards time when accident occurred, 57 A.L.R.5th 689.

CHAPTER 40-43 Payment and Compromise of Judgments

40-43-01. Judgment or a settlement of a claim against municipality — Additional tax levied.

If a final judgment is obtained or a settlement is made of a claim against any municipality in this state, the governing body of the municipality, by resolution, may provide for the levy and collection of an annual tax upon all the taxable property within the municipality for the payment of such judgment or a settlement of a claim. The amount levied under this section for the payment of a judgment or a settlement of a claim against a municipality shall not exceed the limitation in section 57-15-28.1.

Source: S.L. 1911, ch. 69, § 1; C.L. 1913, § 3681; S.L. 1931, ch. 297, § 1; R.C. 1943, § 40-4301; S.L. 1983, ch. 606, § 43; 2015, ch. 439, § 46, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 46 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Liability of political subdivisions, insurance, tax levy or bonds to pay judgment, see ch. 32-12.1.

Notes to Decisions

Remedy of Obligee.

Where the law makes it the duty of a municipal corporation to levy a tax to pay an obligation, mandamus on the petition of the owner of the obligation is an appropriate remedy. City of Mohall v. First Nat'l Bank, 105 F.2d 315, 1939 U.S. App. LEXIS 3318 (8th Cir. Mo.), cert. denied, 308 U.S. 587, 60 S. Ct. 110, 84 L. Ed. 491, 1939 U.S. LEXIS 421 (U.S. 1939).

DECISIONS UNDER PRIOR LAW

Duty of Council.

It was the duty of the city council against which a judgment had been obtained to levy a tax, not exceeding ten mills annually, to pay the judgment. City of Mohall v. First Nat'l Bank, 105 F.2d 315, 1939 U.S. App. LEXIS 3318 (8th Cir. Mo.), cert. denied, 308 U.S. 587, 60 S. Ct. 110, 84 L. Ed. 491, 1939 U.S. LEXIS 421 (U.S. 1939).

Maximum Levy.

The maximum levy that may be made upon the property within a city for the purpose of the payment of judgments against it is ten mills on the assessed valuation thereof, regardless of the number or amounts of such judgments. Appeal of Cunningham, 63 N.D. 62, 245 N.W. 896, 1932 N.D. LEXIS 136 (N.D. 1932).

Collateral References.

Mandamus, liability of municipal corporation for damages to successful plaintiff or relator in, 73 A.L.R.2d 903.

Allowance of attorneys’ fees in mandamus proceedings, 34 A.L.R.4th 457.

Insufficiency of notice of claim against municipality as regards statement of place where accident occurred, 69 A.L.R.4th 484.

Municipal liability for negligent fire inspection and subsequent enforcement, 69 A.L.R.4th 739.

40-43-02. Compromise of judgments against municipalities — Tax levy to pay reduced judgment — Tax limitations not applicable. [Repealed]

Source: S.L. 1935, ch. 196, § 1; R.C. 1943, § 40-4302; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-43-03. Negotiable bearer bonds may be issued to pay compromised amount. [Repealed]

Source: S.L. 1935, ch. 196, § 2; R.C. 1943, § 40-4303; S.L. 1967, ch. 323, § 210; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-43-04. Levy of tax to pay principal and interest of bonds — Duty of county auditor. [Repealed]

Source: S.L. 1935, ch. 196, § 3; R.C. 1943, § 40-4304; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-43-05. Funding compromised judgment for negligence based on special assessment warrants — Subrogation rights of municipality.

When warrants payable from special assessments made to pay the cost of a local improvement have been or shall be issued by a municipality and the holder or holders of all or any portion of the issue of such warrants shall procure a final judgment against the municipality in damages based on the municipality’s negligence or breach of duty in the levy or collection of the special assessments and such judgment shall be compromised and funded by the issuance of bonds as provided in this chapter, the municipality shall succeed and be subrogated to the rights of the holder or holders of the warrants in and to all remaining uncollected special assessments and to the fund created thereby, and the municipality shall receive payment and distribution from the uncollected special assessments as if it owned and held the warrants affected by the judgment. Moneys acquired in such manner by or for the municipality shall be held apart from its general funds and shall be applied first to the payment of the bonds issued in compromise of the judgment. After payment of all bonds issued in compromise of the judgment, the levy of an annual tax for the payment of the same shall be discontinued, and the municipality shall cover into its general fund any surplus then or thereafter acquired from its interest in the fund created by the special assessments.

Source: S.L. 1935, ch. 196, § 4; R.C. 1943, § 40-4305.

Notes to Decisions

Breach of Duty or Negligence.

Section 40-43-02 authorizes the issuance of bonds to pay judgments obtained on special improvement warrants only in cases where there was a breach of duty or negligence. Schieber v. Mohall, 66 N.D. 593, 268 N.W. 445, 1936 N.D. LEXIS 206 (N.D. 1936); G. W. Jones Lumber Co. v. Marmarth, 67 N.D. 309, 272 N.W. 190, 1937 N.D. LEXIS 84 (N.D. 1937).

40-43-06. Purpose of judgment funding provisions.

This chapter creates additional powers and optional and alternative methods for the single and specific purpose of enabling municipalities to pay and to compromise judgments, to issue bonds to fund and satisfy the same, to levy taxes in amounts necessary for such purposes without respect to limitations otherwise existing, and to scale down such judgments and compromise and fund the same over a period of years.

Source: S.L. 1935, ch. 196, § 5; R.C. 1943, § 40-4306.

40-43-07. Political subdivisions authorized to carry liability insurance — Waiver of immunity to extent only of insurance purchased. [Repealed]

Repealed by S.L. 1977, ch. 303, § 18.

Note.

For present provisions, see ch. 32-12.1.

CHAPTER 40-44 Civil Service in Cities

40-44-01. Cities of certain population may adopt civil service system.

The governing body of any city having a population of more than four thousand inhabitants according to the latest official federal or state census may adopt, by ordinance, a civil service system for the selection, employment, classification, advancement, suspension, retirement, or discharge of appointive officials or employees of the city.

Source: S.L. 1937, ch. 173, § 1; R.C. 1943, § 40-4401.

Cross-References.

Park districts may adopt civil service system, see § 40-49-20.

Notes to Decisions

Challenge to Termination.

Proceedings challenging the termination of municipal employees may be made by mandamus seeking reinstatement or as independent actions. Rudnick v. Jamestown, 463 N.W.2d 632, 1990 N.D. LEXIS 238 (N.D. 1990).

Disciplinary Procedures.

Whether or not the city’s disciplinary procedures complied with due process is fully reviewable; however, the substantive merits of the disciplinary action are subject to limited review with deference to the disciplinary authority. Rudnick v. Jamestown, 463 N.W.2d 632, 1990 N.D. LEXIS 238 (N.D. 1990).

Collateral References.

Power of civil service body on own motion and without notice or hearing to reconsider, modify, vacate or set aside order relating to dismissal of employee, 16 A.L.R.2d 1126.

Pre-employment conduct as ground for discharge of civil service employee having permanent status, 4 A.L.R.3d 488.

Determination as to good faith in abolition of public office or employment subject to civil service or merit system, 87 A.L.R.3d 1165.

Validity, construction, and application of enactments relating to requirement of residency within or near specified governmental unit as condition of continued employment for policemen or firemen, 4 A.L.R.4th 380.

Sexual misconduct or irregularity as amounting to “conduct unbecoming an officer”, justifying officer’s demotion or removal or suspension from duty, 9 A.L.R.4th 614.

Validity, construction, and effect of state statutes restricting political activities of public officers or employees, 51 A.L.R.4th 702.

Validity, construction, and application of regulations regarding outside employment of governmental employees or officers, 62 A.L.R.5th 671.

40-44-02. Failure or refusal of city to adopt civil service — Petition — Election held.

If the governing body of any city which is subject to the provisions of this chapter shall fail or refuse to adopt the provisions of this chapter, twenty percent of the qualified electors of the city may file a written petition with the city auditor demanding that the provisions be adopted or that the question be submitted to the qualified electors of the city, and unless the civil service system is adopted by the governing body, the question shall be submitted to the qualified electors of the city at the next regular municipal election.

Source: S.L. 1937, ch. 173, § 5; R.C. 1943, § 40-4402; S.L. 1985, ch. 235, § 89.

40-44-03. Form of ballot to be used in voting upon adoption of civil service system — Vote required to adopt.

At any election held to determine whether a city shall adopt a civil service system under the provisions of this chapter, the question shall be submitted to the electors in substantially the following form:

Shall the city adopt the civil service system? Yes No

Click to view

If sixty percent of the votes cast upon the question favor the adoption of a civil service system, the governing body of the city, within sixty days after the election, shall pass the necessary ordinance and adopt a civil service system as is provided in this chapter.

Source: S.L. 1937, ch. 173, § 5; R.C. 1943, § 40-4403.

40-44-04. Civil service commission or commissioner — Delegation of powers to — When rules and regulations effective.

The governing body may provide and create a civil service commission consisting of three members, or it may appoint a civil service commissioner. It may delegate to the commission or commissioner, as the case may be, such powers and duties relating to the making and enforcing of civil service rules and regulations as it may deem advisable. The rules and regulations, however, shall have no force nor effect until duly adopted by ordinance.

Source: S.L. 1937, ch. 173, § 1; R.C. 1943, § 40-4404.

40-44-05. Terms of members of commission or of commissioner — Clerk — Vacancies.

If a commission is created, the terms of office of the three commissioners first appointed shall be one, three, and five years, respectively. Thereafter, original appointments shall be for a five-year term. If a commissioner is appointed, the first appointment and any subsequent original appointment shall be for a three-year term. In case of a vacancy in the office of a member of the commission or in the office of the commissioner, the governing body shall fill the vacancy by appointment for the balance of the term. The city auditor shall be ex officio clerk of the commission or commissioner.

Source: S.L. 1937, ch. 173, § 1; R.C. 1943, § 40-4405.

40-44-06. Compensations and expenses of members of commission or of commissioner.

The compensation of the commissioner or of a member of the commission shall be determined by the governing body of the city for the time actually devoted to the performance of duties of the office, plus the person’s actual expenses.

Source: S.L. 1937, ch. 173, § 1; R.C. 1943, § 40-4406; S.L. 1973, ch. 334, § 1.

40-44-07. Purpose and intent of chapter — Types of systems that may be set up.

This chapter shall enable, authorize, and empower the governing body of any city having the requisite number of inhabitants to adopt a civil service system adapted to the size and requirements of the city. Such system, if deemed advisable by such body, may consist merely in the setting up of minimum employment qualifications for full-time members of the city’s paid fire and police departments and the heads thereof with provisions prohibiting their suspension, removal, or discharge, or the suspension, removal, or discharge of any other appointive employee or official except upon adequate reason and cause shown upon hearing and thereon after reasonable notice to the person or persons sought to be suspended, removed, or discharged. If deemed advisable by the governing body, the civil service system may consist of a comprehensive system covering all paid fire and police department full-time employees and the heads of these two departments and other appointive full-time employees and officials, other than common laborers and employees who have not been in the continuous employment of the city for a period of more than one year, as in the discretion of the governing body of the city may be for the best interests of the public, such employees, and the service to be rendered to the city.

Source: S.L. 1937, ch. 173, § 2; R.C. 1943, § 40-4407.

40-44-08. Ordinance creating civil service system — What to be included — Departments automatically included.

In any ordinance creating a civil service system, the governing body shall designate the departments, classes of employees, and the appointive officials of the city who shall come under the system, and it subsequently may add thereto. All full-time paid employees of the fire and police departments, with the chiefs thereof, shall be placed under any civil service system adopted whether they are designated in the ordinance or not.

Source: S.L. 1937, ch. 173, § 2; R.C. 1943, § 40-4408.

40-44-09. Ordinance providing for civil service shall prohibit political activities of persons under system. [Repealed]

Repealed by S.L. 1977, ch. 420, § 3.

40-44-10. Contracting with other municipalities and state departments for conduct of competitive examinations.

The governing body of any municipality, subject to the provisions of this chapter, may contract with the governing body of any other municipality in this state or with any state department for the holding of competitive examinations to ascertain the fitness of applicants for positions and employment in the city service and for the performance of any other service in connection with personnel selection and administration.

Source: S.L. 1937, ch. 173, § 3; R.C. 1943, § 40-4410.

40-44-11. Change of form of government in city which has adopted a civil service system — Effect.

If any city in this state which has established a civil service system in compliance with the requirements of this chapter shall change its form of municipal government, such civil service provisions as previously have been established shall continue under the new form of municipal government except as to those provisions which the governing body of the city may see fit to change within the limitations described in this chapter. The governing body of the city, after the change in its form of government, shall designate, as described in section 40-44-08, the departments, classes of employees, and appointive officials of the city who shall come under the civil service, and it subsequently may add thereto except as restricted by the provisions of this chapter.

Source: S.L. 1939, ch. 174, § 1; R.C. 1943, § 40-4411.

40-44-12. Abandonment of civil service system — Election — Form of ballot — Removal of department or employee from civil service.

After a civil service system has been adopted, the governing body shall not abolish it nor remove any department or employee thereof, or any employee or appointive official, from under the civil service and the provisions of this chapter unless and until civil service has been abandoned by the city after the question shall have been submitted to the qualified electors of the city at a regular or special municipal election. At any election held to determine whether the city shall abandon the civil service system, the question shall be submitted to the electors in substantially the following form:

Shall the city abandon the civil service system? Yes No

Click to view

If two-thirds of the votes cast upon the question favor the abandonment of civil service, the governing body shall provide for the abandonment of the system. Any office or employment, however, may be abolished by the governing body of the city by resolution declaring there no longer is need therefor after a hearing has been given to the officials and employees to be affected and after a determination to such effect.

Source: S.L. 1937, ch. 173, §§ 2, 5; R.C. 1943, § 40-4412.

40-44-13. Penalty for violation of chapter.

Any willful violation of the provisions of this chapter, or any violation of such provisions through culpable negligence, shall be grounds for removal from office of a city official or for summary discharge of a city employee.

Source: S.L. 1937, ch. 173, § 6; R.C. 1943, § 40-4413.

CHAPTER 40-45 Police Pensions in Cities

40-45-01. Funding for police pension fund.

Any city having a population in excess of five thousand inhabitants according to the last official federal census and having an organized and paid police department may provide funding for the purpose of creating and maintaining a police pension fund from revenues derived from its general fund levy authority.

Any city having established by law a police retirement system based upon actuarial tables may provide funding for the police pension fund from revenues derived from its general fund levy authority.

Source: S.L. 1937, ch. 174, § 1; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4501; S.L. 1953, ch. 258, § 1; 1957 Supp., § 40-4501; S.L. 1961, ch. 281, § 1; 1983, ch. 606, § 44; 2015, ch. 439, § 47, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 47 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Chief of police and police officers, powers and duties, see § 40-20-05.

Firemen’s relief association and pension fund, see ch. 18-05.

Public employees under federal social security, see ch. 52-10.

Tax levy for city having provided its employees with the federal social security plan, see § 40-46-26.

Collateral References.

Disciplinary suspension of public employee as affecting computation of length of service for retirement or pension purposes, 6 A.L.R.2d 506.

What constitutes “salary”, “wages”, “pay”, or the like, within pension law basing benefits thereon, 14 A.L.R.2d 634.

Causal connection between policeman’s performance of official duties and his disability, for purpose of recovering disability benefits, 27 A.L.R.2d 974.

Relationship between policeman’s performance of official duties and his death, for purpose of recovery of benefits by survivors, 27 A.L.R.2d 1004.

Validity of legislation providing for additional retirement or disability allowances for policeman previously retired or disabled, 27 A.L.R.2d 1442.

Validity of repeal or modification of pension statute provisions, 52 A.L.R.2d 437.

Misconduct as affecting right to pension or retention of position in retirement system, 76 A.L.R.2d 566.

Validity of statutory classifications based on population — Governmental employee salary or pension statutes, 96 A.L.R.3d 538.

40-45-02. Tax levy for pension fund if retirement system based upon actuarial tables is maintained. [Repealed]

Source: S.L. 1937, ch. 174, § 1; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4502; S.L. 1953, ch. 258, § 2; 1957 Supp., § 40-4502; S.L. 1961, ch. 281, § 2; 1971, ch. 412, § 1; 1973, ch. 335, § 1; 1983, ch. 606, § 45; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-45-03. Composition and membership.

The governing body of the city may adopt ordinances relating to the composition of and membership in police pension systems subject to the provisions of this chapter.

Source: S.L. 1937, ch. 174, § 2; R.C. 1943, § 40-4503; S.L. 1961, ch. 282, § 1; 1973, ch. 320, § 15; 1977, ch. 385, § 1.

40-45-04. Acceptance of money, property, and rewards by the board — Limitations.

The board of trustees may take by gift, grant, devise, or bequest any money or real or personal property or other thing of value for the benefit of the police pension fund. All rewards in moneys, fees, gifts, or emoluments of every kind or nature that may be paid or given to any police department or to any member thereof, except when allowed to be retained or given to endow a medal or other permanent or competitive reward on account of extraordinary services rendered by the department or any member thereof, and all fines and penalties imposed upon members, shall be paid into and shall become a part of the pension fund.

Source: S.L. 1937, ch. 174, § 4; R.C. 1943, § 40-4504.

40-45-05. Police pension fund — How established.

All moneys derived from taxes levied to create a police pension fund, all moneys received as membership fees and dues, and all moneys received from grants, donations, legacies, and devises for the benefit of such fund shall constitute a fund to be known and designated as the police pension fund.

Source: S.L. 1937, ch. 174, § 1; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4505.

40-45-06. Investment of surplus funds — Limitations.

At the end of the fiscal year, the board of trustees may invest any surplus left in the police pension fund, but no part of the moneys realized from any tax levy shall be used for any purpose other than the payment of pensions. Such surplus funds may be invested in interest-bearing bonds of the United States or the state of North Dakota, or bonds or warrants of any county, township, or municipal corporation of this state which constitute the general obligations or contingent general obligations of the issuing tax authority, or investments with any federally insured bank or savings and loan association. All securities shall be deposited with the treasurer of the board for safekeeping. The board may also invest all or part of such surplus funds in other investments by selecting a funding agent or agents and establish an investment agreement contract regarding such surplus funds. The contract shall authorize the funding agent or agents to hold and invest such funds for the board and such funds shall be placed for investment only with a firm or firms whose primary endeavor is money management, and only after a trust agreement or contract has been executed. The board of trustees may pay the fees and charges of said funding agent or agents from any surplus remaining in the police pension fund in excess of the moneys realized from any tax levy. The board of trustees may use a portion of the surplus left in the police pension fund in excess of moneys realized from any tax levy to pay the cost of actuarial studies of said pension system.

Source: S.L. 1937, ch. 174, § 3; R.C. 1943, § 40-4506; S.L. 1955, ch. 277, § 1; 1957, ch. 288, § 1; 1957 Supp., § 40-4506; S.L. 1967, ch. 198, § 3; 1971, ch. 413, § 1.

40-45-07. Tax levy may be discontinued when fund sufficient.

Whenever a city which has established a police pension fund under the provisions of this chapter has a sufficient balance in such fund to meet any proper and legitimate charges that may be made against it, such city shall not be required to levy further taxes for the fund.

Source: S.L. 1937, ch. 174, § 1; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4507.

40-45-08. Membership fees and assessments.

Every member of the police department shall pay to the treasurer of the pension fund a membership fee to be fixed by the board of trustees in an amount not exceeding twenty-five dollars. Each member shall be assessed and required to pay annually an amount not less than three percent or more than five percent per annum as determined by the governing body of the municipality upon the amount of the annual salary paid to the member. Such assessment shall be deducted and retained in equal monthly installments out of such salary. Assessments shall be made of all members for a minimum period of fifteen years for partial retirement and for twenty years and for such additional years as may be determined by the governing body for full retirement, as provided by section 40-45-09.

Source: S.L. 1937, ch. 174, § 5; R.C. 1943, § 40-4508; S.L. 1953, ch. 258, § 3; 1957, ch. 289, § 1; 1957 Supp., § 40-4508; S.L. 1961, ch. 281, § 3; 1967, ch. 336, § 1; 1975, ch. 382, § 1.

40-45-09. Who may be retired on pension — Amount paid to retiring member — Retiring member not paid.

Any member of the police department, including officers and police matrons, who shall have served twenty years or more in the department and shall have reached the age of sixty years, or who, while a member of such department shall suffer permanent mental or physical disability so that the person is unable to discharge the person’s duties, shall be entitled to be retired. Upon retirement, the person may be paid out of the pension fund of the department a monthly pension equal to sixty percent of the average monthly salary received during the highest paid consecutive thirty-six month period of the person’s employment in the department. If any member shall have served twenty years in the department but shall not have reached the age of sixty years, the person shall be entitled to retirement, but no pension shall be paid while the person lives until the person reaches the age of sixty years, except as provided in section 40-45-11. Any member who has served one hundred eighty months but less than two hundred forty months, has contributed voluntarily to the police pension fund, and who voluntarily and while in good standing as a member has left employment of such city, shall be entitled to elect retirement instead of refund at a pension equal to the proportion of a full pension which the total number of months employed by the city bears to two hundred forty months, but no pension shall be paid while the person lives until the person reaches the age of sixty years. Notwithstanding the provisions of this section, upon the approval of the governing body of the municipality, and at the discretion of the board of trustees if it shall find that the actuarial soundness of the fund would not be materially impaired, any member otherwise qualifying in accordance with the provisions of this section may retire if the person has reached the age of fifty-five years.

Source: S.L. 1937, ch. 174, § 6; R.C. 1943, § 40-4509; S.L. 1961, ch. 281, § 4; 1965, ch. 292, § 1; 1969, ch. 378, § 1; 1971, ch. 414, § 1; 1975, ch. 382, § 2.

Collateral References.

What constitutes “salary,” “wages,” “pay,” or the like, within pension law basing benefits thereon, 91 A.L.R.5th 225.

40-45-10. Period of service spent in armed forces to be included as service in department.

Any member of a police department who has resigned therefrom or who shall resign therefrom, or who has been granted or shall be granted a leave of absence to serve in the armed forces of the United States or armed forces reserve thereof, or who shall have been selected for training under the selective service provisions of the laws of the United States and has returned with an honorable discharge from, or other document showing honorable service in, such service to the police department, shall have the period of such service included as part of the person’s period of service in the department.

Source: S.L. 1937, ch. 174, § 7; 1941, ch. 207, § 7; R.C. 1943, § 40-4510; S.L. 1949, ch. 281, § 1; 1957 Supp., § 40-4510.

Notes to Decisions

“Honorably Discharged” Defined.

The term “honorably discharged” means honorably relieved, released, transferred, or retired from active duty status by military or naval authorities. Quam v. City of Fargo, 77 N.D. 333, 43 N.W.2d 292 (1950).

Liberal Construction.

Pension statute which has as its main purpose the encouragement of enlistment in the armed services of the United States should be liberally construed to carry out its beneficial policy. Quam v. City of Fargo, 77 N.D. 333, 43 N.W.2d 292 (1950).

Reinstatement in Service.

A member who, because of disability incurred in military service, is incapacitated for further duty with the police department on his release from military service, is not required to undergo the useless formality of reinstatement in the police department in order to have his military service counted toward the period required for retirement. Quam v. City of Fargo, 77 N.D. 333, 43 N.W.2d 292 (1950).

Service-Incurred Disability.

The police pension fund is for the protection of members of the police department based on service in the department, and it should not be burdened with compensation for physical disability incurred in the army. Quam v. City of Fargo, 77 N.D. 333, 43 N.W.2d 292 (1950).

40-45-10.1. Purchase of legislative service credit.

A member of a police pension fund under this chapter may, prior to retirement, purchase for inclusion in the period of service in the department the time during each legislative session spent serving as a member of the legislative assembly while a member of the pension fund. The member shall pay for this service an amount equal to the required member assessments and employer contributions plus interest as established by the board of trustees. Service credit for legislative sessions prior to July 1, 1985, must be purchased before January 1, 1986. Service credit for each later legislative session must be purchased within one year after the adjournment of that legislative session.

Source: S.L. 1985, ch. 587, § 4; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740.

Note.

The 1989 repeal of this section by S.L. 1989, ch. 223, section 8 was disapproved by R.M. December 5, 1989.

The section is set out above as it read prior to such repeal.

40-45-11. Eligibility for retirement because of disability.

No member of the police department who shall become unable mentally or physically to perform the person’s duties, nor the person’s dependents, shall be entitled to receive benefits under this chapter because of such disability unless such member shall have been on active duty with the department for a period of at least ten years prior to such disability unless such mental or physical impairment was received in the line of duty and permanently disabled such member. Provided, however, that any member of the department who shall have served twenty-two years, retired, and subsequently suffered a permanent disability prior to attaining age sixty, may, in the discretion of the pension board and providing that the same is actuarially sound, be eligible for disability retirement. The question of disability shall be determined by the board of trustees upon the concurring report of at least two out of three physicians designated by the board of trustees to make a complete physical examination of the member.

Source: S.L. 1937, ch. 174, §§ 1, 8; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4511; S.L. 1969, ch. 378, § 2.

Collateral References.

Determination whether peace officer’s disability is service-connected for disability pension purposes, 12 A.L.R.4th 1158.

40-45-12. Assignment of retired members to light duties in police department.

The chief of the police department of the city may assign any member of the department, retired or drawing a pension under the provisions of this chapter, to the performance of light duties in such department.

Source: S.L. 1937, ch. 174, § 9; R.C. 1943, § 40-4512.

40-45-13. Payments to surviving spouse, children, and surviving parents upon death of active or retired member.

Upon the death of any active or retired member of the police department of a city maintaining a police pension fund under this chapter, leaving a surviving spouse or minor children or dependent father or mother surviving the deceased member, there shall be paid out of the fund subject to the restrictions contained in section 40-45-14, as follows:

  1. To the surviving spouse, as long as the surviving spouse remains unmarried, a sum not less than fifty dollars per month and not more than sixty percent of the deceased spouse’s police retirement benefits.
  2. If there is no surviving spouse, or upon the death or remarriage of the surviving spouse, then to the deceased member’s dependent father or mother, if both survive, or to either dependent parent if one survives, the sum of forty dollars per month.
  3. To the guardian of each surviving child under eighteen years of age, a sum not less than twenty-five dollars per month and not more than fifty dollars per month.

The aggregate of all such payments shall not exceed sixty percent of the average monthly salary received during the highest paid consecutive thirty-six month period of the deceased member’s employment prior to the time of the deceased member’s death or retirement.

Source: S.L. 1937, ch. 174, § 10; R.C. 1943, § 40-4513; S.L. 1953, ch. 258, § 4; 1957 Supp., § 40-4513; S.L. 1961, ch. 281, § 5; 1971, ch. 415, § 1.

40-45-14. Definitions for benefit purposes.

The benefits provided for in section 40-45-13 shall be subject to the following definitions:

  1. “Child” or “children” means only the surviving issue of a deceased active or retired member, or the child or children legally adopted by a deceased member prior to the deceased member’s retirement from active service or by a retired member prior to July 1, 1937.
  2. “Surviving spouse” means only the surviving spouse of a marriage contracted prior to retirement of a deceased member from active service or of a marriage of a retired member contracted prior to July 1, 1937.

Source: S.L. 1937, ch. 174, § 10; R.C. 1943, § 40-4514.

40-45-15. Right to retirement once acquired cannot be lost.

After any member of a police department shall have become entitled to be retired under the provisions of this chapter, such right shall not be lost or forfeited by discharge or for any other reason.

Source: S.L. 1937, ch. 174, § 8; R.C. 1943, § 40-4515; S.L. 1977, ch. 386, § 1.

Notes to Decisions

Vested Right.

The right to retirement of a member of the police department, once acquired, can be lost only by conviction of a felony and is in no manner affected by the subsequent deletion of his name from the civil service rolls of the city. Holcomb v. Hamm, 77 N.D. 154, 42 N.W.2d 70, 1950 N.D. LEXIS 115 (N.D. 1950). (Decided prior to 1977 amendment).

40-45-16. Increase of assessments by city having police retirement system based upon actuarial tables.

If the mill levy provided for in section 40-45-01, together with contributions from beneficiaries and funds received from other sources as provided in this chapter, is inadequate or insufficient to establish a retirement system based upon actuarial tables, the governing body, in order to establish such system upon an actuarial basis, may increase the amount of the contributions from beneficiaries.

Source: S.L. 1937, ch. 174, § 1; 1939, ch. 177, § 1; 1941, ch. 208, § 1; R.C. 1943, § 40-4516; S.L. 1953, ch. 258, § 5; 1957 Supp., § 40-4516; S.L. 1961, ch. 281, § 6; 1983, ch. 82, § 84.

Notes to Decisions

Power of Board.

Board of city commissioners has the right to make a reduction in benefits provided that it is found necessary to do that in order to establish the retirement system upon a sound actuarial basis. Quam v. City of Fargo, 77 N.D. 333, 43 N.W.2d 292 (1950).

40-45-17. Reduction of retirement benefits by amount received from workmen’s compensation fund. [Repealed]

Repealed by S.L. 1979, ch. 448, § 1.

40-45-18. Qualification under Social Security Act authorized — Reduction of retirement benefits.

In the event that the federal Social Security Act shall be extended by the Congress of the United States to municipal employees, the governing body of any municipality may take all steps necessary to qualify its employees, subject to the terms of this chapter, for benefits under the retirement provisions of the said Social Security Act. In such event, the benefits received under and by virtue of any retirement plan established under the provisions of this chapter shall be reduced by the benefits received under the federal Social Security Act.

Source: S.L. 1941, ch. 208, § 1; R.C. 1943, § 40-4518.

Cross-References.

Public employees under federal social security, see ch. 52-10.

Tax levy for city having provided its employees with the federal social security plan, see § 40-46-26.

40-45-19. Reexamination of retired member physically or mentally disabled — Notice — Witnesses.

The board of trustees, at any time, may cause any member of the department retired by reason of physical or mental disability to be brought before it and again examined by three competent physicians appointed by the board to discover whether such disability continues, whether it can be improved, and whether such retired member should be continued on the pension roll, and the board may examine witnesses for such purposes. The question of continued disability or ability to perform regular or light duty in the police department shall be determined by the concurring report of at least two of the three examining physicians. Such member shall have reasonable notice that the examination will be made and that the member shall be present at the time of the taking of any testimony. The member may examine the witnesses brought before the board and introduce evidence in the member’s own behalf. All witnesses shall be examined under oath, which may be administered by any member of the board.

Source: S.L. 1937, ch. 174, § 12; R.C. 1943, § 40-4519.

40-45-20. Decision on reexamination is final — Exception.

The decision of the board of trustees upon the re-examination provided for in section 40-45-19 shall be final and conclusive in the absence of fraud, and no appeal shall be allowed therefrom. The disabled member shall remain upon the pension roll unless and until reinstated in the department by reason of the re-examination.

Source: S.L. 1937, ch. 174, § 13; R.C. 1943, § 40-4520.

40-45-21. Police department employees entitled to refund from fund upon termination of employment with city.

Any employee of a police department who shall have contributed to the police pension fund, and who voluntarily and while in good standing as a member of such police force leaves the employment of the city, shall be entitled upon application at the time of such termination to a refund of all contributions made by that person.

Source: S.L. 1953, ch. 258, § 6; R.C. 1943, 1957 Supp., § 40-4521; S.L. 1965, ch. 293, § 1.

40-45-22. Warrants on pension fund — Treasurer’s report — Contents.

All pensions paid and all moneys drawn from the pension fund under the provisions of this chapter shall be upon warrants signed by the board of trustees. Such warrants shall designate the person to whom and the purpose for which payment is made. The treasurer’s annual report shall show the receipts and expenditures of the fund for the preceding fiscal year, the money on hand, and how the same is invested.

Source: S.L. 1937, ch. 174, § 14; R.C. 1943, § 40-4522.

40-45-23. Pensions not subject to debts, execution, or other process. [Repealed]

Repealed by S.L. 1987, ch. 386, § 2.

40-45-24. Cities may provide hospitalization and nursing for police department — How cost paid — Exception.

Cities may provide hospital, nursing, and medical attention for the members of the police department when injured while in the performance of their duties as members of such department. The cost of such hospitalization, nursing, and medical attention shall be paid out of the appropriation for the department. Any amounts received by the injured person under the provisions of title 65 or from any other source for such specific purposes shall be deducted from the amount paid by the city under the provisions of this section.

Source: S.L. 1937, ch. 174, § 15; R.C. 1943, § 40-4524.

40-45-25. Hours of duty of police officers in cities over ten thousand population — Limitations — Exceptions.

A police officer employed in the police department of a city having a population of ten thousand or more inhabitants shall not be required to remain on duty for periods of time which will aggregate in each month more than an average of eight hours per day. No single period of time or shift shall exceed twenty-four hours in length except that in case of serious emergency, the police officer may be required to remain on duty until the emergency has passed, if the officer is ordered to do so by the chief of the department or the person acting in the chief’s place. The provisions of this section shall not apply to the chief or other persons in command of a police department or to police officers who are employed subject to call only.

Source: S.L. 1937, ch. 174, §§ 16, 17; R.C. 1943, § 40-4525.

40-45-26. Question of continuance of police pension plan.

The governing body of a city having a police pension plan may discontinue such plan upon receipt of a petition requesting such discontinuance signed by sixty percent of the police employees and pensioners of the city as of the date of the filing of such petition and upon the subsequent adoption by the governing body of a resolution by two-thirds vote of the members present stating that the plan is not desirable or workable.

Source: S.L. 1959, ch. 308, § 1.

Notes to Decisions

City’s Authority.

Language of N.D.C.C. §§ 40-45-26 and 40-45-27 did not indicate that the legislature intended to limit a city or county’s authority to provide for this type of compensation or that a city or county ordinance could not supersede these provisions; N.D.C.C. ch. 40-45 did not require cities to provide pension plans for police officers but provided a way for all cities to adopt pension plans and contained the type of provisions a city could use as a guide in implementing a pension plan as compensation. Klug v. City of Minot, 2011 ND 67, 795 N.W.2d 906, 2011 N.D. LEXIS 68 (N.D. 2011).

40-45-27. Procedure upon discontinuance of police pension plan.

If the governing body of the city shall determine by a two-thirds vote as provided in section 40-45-26 that the police pension plan shall be discontinued, the plan shall be discontinued as provided in section 40-46-25.

Source: S.L. 1959, ch. 308, § 2; 2015, ch. 439, § 48, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 48 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Notes to Decisions

City’s Authority.

Language of N.D.C.C. §§ 40-45-26 and 40-45-27 did not indicate that the legislature intended to limit a city or county’s authority to provide for this type of compensation or that a city or county ordinance could not supersede these provisions; N.D.C.C. ch. 40-45 did not require cities to provide pension plans for police officers but provided a way for all cities to adopt pension plans and contained the type of provisions a city could use as a guide in implementing a pension plan as compensation. Klug v. City of Minot, 2011 ND 67, 795 N.W.2d 906, 2011 N.D. LEXIS 68 (N.D. 2011).

40-45-28. Pension cost of living increase.

In July of each year, the police pension board may add, if found actuarially sound, a cost of living increase to the monthly amounts paid beneficiaries from the pension fund. The total monthly pension payment under this section shall not exceed sixty percent of the monthly salary average during the preceding thirty-six months for the same or comparable position in the police department as held by the retiree in the retiree’s last month before retirement.

Source: S.L. 1975, ch. 383, § 1.

40-45-29. Pension cost of living decrease.

The pensions provided in this chapter may be decreased by the police pension board if the cost of living goes down.

Source: S.L. 1975, ch. 383, § 2.

CHAPTER 40-46 Employees’ Pensions in Cities

40-46-01. Adoption of employees’ pension plan — Exclusion of police and members of firefighters relief associations.

The provisions of this chapter become operative in any city qualified to adopt the same by:

  1. The adoption by the governing body of the city of a plan substantially setting forth the provisions of this chapter; and
  2. The concurrence in the plan by the employees of the city by a majority vote thereof.

Thereafter, all employees of the city are bound by the provisions of the plan without further action by the governing body or by the employees of the city. For purposes of this chapter, members of the police force of the city are not considered employees of the city and members of a firefighters relief association are not considered employees of the city, if by a majority vote of the members thereof, they exclude themselves.

Source: S.L. 1941, ch. 207, §§ 6, 15; R.C. 1943, § 40-4601; S.L. 1949, ch. 282, § 1; 1957 Supp., § 40-4601; S.L. 1999, ch. 211, § 17.

Cross-References.

Firemen’s relief association, see ch. 18-05.

Park districts may provide for employees’ pensions, see § 40-49-21.

Police pensions in cities, see ch. 40-45.

Collateral References.

Provision referring to “employees” as including public officers, 5 A.L.R.2d 415, 418.

Disciplinary suspension of public employee as affecting computation of length of service for retirement or pension purposes, 6 A.L.R.2d 506.

Constitutionality, construction, and application of statute or ordinance providing for reduction of pension or retirement benefit of public officer or employee because of independent income, 7 A.L.R.2d 692.

What constitutes “salary”, “wages”, “pay”, or the like, within pension law basing benefits thereon, 14 A.L.R.2d 634.

Validity of legislation providing for additional retirement or disability allowances for public employees previously retired or disabled, 27 A.L.R.2d 1442.

Validity of repeal or modification of pension statute provisions, 52 A.L.R.2d 437.

Misconduct as affecting right to pension or retention of position in retirement system, 76 A.L.R.2d 566.

40-46-02. Tax levy for city employees’ pension fund authorized — Limitations.

Any city may provide funding from revenues derived from its general fund levy authority for the purpose of creating and maintaining a city employees’ pension fund. A city may make payment to any pension plan or retirement program for city employees that is approved by the internal revenue service. Any pension system must be based on actuarial tables and actuarial valuation must be performed at intervals of not more than five years.

Source: S.L. 1941, ch. 207, § 1; R.C. 1943, § 40-4602; S.L. 1947, ch. 277, § 1; 1953, ch. 259, § 1; 1957 Supp., § 40-4602; S.L. 1959, ch. 310, § 1; 1963, ch. 297, § 1; 1969, ch. 456, § 3; 1971, ch. 416, § 1; 1983, ch. 465, § 1; 1983, ch. 606, § 46; 2015, ch. 439, § 49, effective January 1, 2015.

Effective Date.

The 2015 amendment of this section by section 49 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Park district levy for pensions, see § 40-49-22.

Public employees under federal social security, see ch. 52-10.

Tax levy for city having provided its employees with the federal social security plan, see § 40-46-26.

40-46-02.1. Tax levy for city employees’ pension plan authorized — Limitations. [Repealed]

Repealed by S.L. 1983, ch. 465, § 2.

40-46-03. Tax levy may be discontinued when fund sufficient.

Whenever a city which has established a city employees’ pension fund under the provisions of this chapter has a sufficient balance in such fund to meet any proper and legitimate charges that may be made against it, such city shall not be required to levy further taxes for the fund.

Source: S.L. 1941, ch. 207, § 1; R.C. 1943, § 40-4603.

40-46-04. Membership fees and assessments.

Every full-time city employee who qualifies for membership in the city employees’ pension fund shall, at the time of employment, pay to the treasurer of the pension fund a membership fee to be fixed by the board of trustees in an amount not exceeding twenty-five dollars. Each member shall be assessed and required to pay annually an amount not more than seven percent, to be determined by the board of trustees, upon the amount of annual salary paid to the member, and such assessment shall be deducted and retained out of such salary in equal monthly installments. No assessment shall be made after retirement.

Source: S.L. 1941, ch. 207, § 5; R.C. 1943, § 40-4604; S.L. 1953, ch. 259, § 2; 1957 Supp., § 40-4604; S.L. 1959, ch. 310, § 2; 1963, ch. 297, § 2; 1977, ch. 388, § 1.

40-46-05. City employees’ pension fund — How established.

All moneys derived from taxes levied to create and maintain a city employees’ pension fund, all moneys received as membership fees and dues, and all moneys received from grants, donations, legacies, and devises for the benefit of such fund, shall constitute a fund to be known and designated as the city employees’ pension fund.

Source: S.L. 1941, ch. 207, § 1; R.C. 1943, § 40-4605.

40-46-06. Board of trustees — Management of pension fund — What constitutes — Officers — Bond of auditor — Compensation.

The executive officer, the city auditor, the city attorney, and two persons elected by and from the members of the city employees’ pension plan, which persons are currently being assessed, shall constitute the board of trustees for the management of the city employees’ pension fund. No member shall be eligible for election until the member has eight years of service as a city employee. The election shall be held on the second Tuesday in June of each year. Each elected member shall serve for a term of two years, except that at the first election one trustee shall be elected for a term of one year and the other for a term of two years. The terms of elected members shall commence on July first of each year. The executive officer shall be the president and the city auditor shall be the treasurer of the board. The faithful performance of the duties of the treasurer shall be secured by that person’s official bond as the city auditor. Such trustees shall receive no compensation for their services as members of the board.

Source: S.L. 1941, ch. 207, § 2; R.C. 1943, § 40-4606; S.L. 1973, ch. 320, § 16; 1977, ch. 388, § 2.

40-46-07. Acceptance of money and property by the board.

The board of trustees may take by gift, grant, devise, or bequest any money or real or personal property or other thing of value for the benefit of the city employees’ pension fund, and when received, such property shall become a part of such fund.

Source: S.L. 1941, ch. 207, § 4; R.C. 1943, § 40-4607.

40-46-08. Investment of surplus in fund — Limitations.

At the end of each fiscal year, the board of trustees may invest any surplus left in the city employees’ pension fund, but no part of the moneys realized from any tax levy shall be used for any purpose other than the payment of pensions. Such surplus funds may be invested in interest-bearing bonds of the United States or the state of North Dakota, or bonds or warrants of any county, township, or municipal corporation of this state which constitute the general obligations or contingent general obligations of the issuing tax authority, or investments with any federally insured bank or savings and loan association. All securities in which moneys belonging to the fund are invested shall be deposited with the treasurer of the board for safekeeping. The board may also invest all or part of such surplus funds in other investments by selecting a funding agent or agents and establish an investment agreement contract regarding such surplus funds. The contract shall authorize the funding agent or agents to hold and invest such funds for the board and such funds shall be placed for investment only with a firm or firms whose primary endeavor is money management, and only after a trust agreement or contract has been executed.

Source: S.L. 1941, ch. 207, § 3; R.C. 1943, § 40-4608; S.L. 1955, ch. 278, § 1; 1957, ch. 288, § 2; 1957 Supp., § 40-4608; S.L. 1967, ch. 198, § 4.

40-46-09. Who may be retired on pension — Amount paid to retiring employee.

Any appointed full-time employee, who shall be a member of a city employees’ pension fund, including librarians and other employees of a public library, and full-time employees of a city recreation commission, of a city having an employees’ pension fund who shall have served two hundred forty months or more, whether or not consecutive, as an employee and shall have reached the age of sixty years, or who, while employed by such city, shall suffer permanent mental or physical disability so that the person is unable to discharge the person’s duties, shall be entitled to be retired. Upon retirement, the person shall be paid out of the pension fund of such city a monthly pension of not to exceed sixty percent of one-twelfth of the person’s highest three-year average annual earnings as provided for in the plan adopted by the governing body of the city. If any member shall have served two hundred forty months in such city employment but shall not have reached the age of sixty years, the person shall be entitled to retirement, but no pension shall be paid while the person lives until the person reaches the age of sixty years.

Source: S.L. 1941, ch. 207, § 6; R.C. 1943, § 40-4609; S.L. 1953, ch. 259, § 3; 1957 Supp., § 40-4609; S.L. 1959, ch. 310, § 3; 1963, ch. 297, § 3; 1965, ch. 352, § 7; 1969, ch. 379, § 1; 1977, ch. 388, § 3.

Collateral References.

What constitutes “salary,” “wages,” “pay,” or the like, within pension law basing benefits thereon, 91 A.L.R.5th 225.

40-46-09.1. Credit for service as employee of recreation commission.

Any full-time employee of a city recreation commission who is eligible for receipt of a pension pursuant to this chapter may, with the approval of, and under terms and conditions set by, the board of trustees, have that person’s previous full-time employment with the city recreation commission of that city counted as a portion of the two hundred forty months of service required by section 40-46-09. The credit given for previous service with the city recreation commission pursuant to this section shall not exceed one hundred twenty months in total. Board of trustee terms shall include payment of pension fund contributions by the employee for the months of service credited.

Source: S.L. 1975, ch. 384, § 1.

40-46-09.2. Purchase of legislative service credit.

An employee of a city having a pension fund under this chapter may, prior to retirement, purchase service for inclusion in the period of service required under this chapter for eligibility for retirement the time during each legislative session spent serving as a member of the legislative assembly while a member of the pension fund. The employee shall pay for this service an amount equal to the required member assessments and employer contributions plus interest as established by the board of trustees. Service credit for legislative sessions prior to July 1, 1985, must be purchased before January 1, 1986. Service credit for each later legislative session must be purchased within one year after the adjournment of that legislative session.

Source: S.L. 1985, ch. 587, § 5; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740.

Note.

The 1989 repeal of this section by S.L. 1989, ch. 223, section 8 was disapproved by R.M. December 5, 1989.

The section is set out above as it read prior to such repeal.

40-46-10. Eligibility for retirement because of disability.

No employee of the city who shall become disabled mentally or physically, nor the employee’s dependents, shall be eligible for a pension because of such disability unless such employee shall have been on active duty with the city for a period of at least ten years, regardless of the employee’s age, unless the retirement of such employee shall be caused by mental or physical impairment sustained by the employee in the line of duty which totally and permanently disabled the employee. The question of total and permanent disability shall be determined by the board of trustees upon the concurring report of at least two out of three physicians designated by the board to make a complete physical examination of the employee.

Source: S.L. 1941, ch. 207, §§ 6, 8; R.C. 1943, § 40-4610.

40-46-11. Period of service spent in armed forces included as service to city.

Any employee of a city having an employees’ pension fund who resigns therefrom or who has been granted or shall be granted a leave of absence to serve in the armed forces of the United States or armed forces reserve thereof, or who shall have been selected for training under the selective service provisions of the laws of the United States, and who has returned to the employ of the city with an honorable discharge from, or other documents showing honorable service in, such service, shall have the period of such service included as part of the employee’s period of service to such city.

Source: S.L. 1941, ch. 207, § 7; R.C. 1943, § 40-4611; S.L. 1949, ch. 283, § 1; 1957 Supp., § 40-4611.

40-46-12. Assignment of retired employees to light duties in work of city.

The chief executive of the city may assign any employee of such city, retired or drawing a pension under the provisions of this chapter, to the performance of light duties in the work of such city.

Source: S.L. 1941, ch. 207, § 9; R.C. 1943, § 40-4612.

40-46-13. Payments to spouse, children, and surviving parents upon death of active or retired member.

Upon the death of any active or retired employee of a city maintaining a city employees’ pension fund under this chapter, leaving a surviving spouse or minor child, or surviving dependent father or mother, there shall be paid out of the fund as follows:

  1. To the surviving spouse as long as the surviving spouse remains unmarried, a sum equal to two-thirds of the pension to which the employee would have been entitled, but not less than forty dollars per month.
  2. If there is no surviving spouse, or if such spouse shall die or remarry, then to the dependent father and mother, if both survive, or to either dependent parent if one survives, the sum of forty dollars per month.
  3. To the father or mother of each surviving child, if such parent survives, for the benefit of such surviving child, until the surviving child shall arrive at the age of eighteen years, a sum not to exceed twenty-five dollars per month, and in case no parent of any such surviving child survives, then to the guardian of each surviving child a sum not to exceed twenty-five dollars per month until the surviving child shall arrive at the age of eighteen years.

The aggregate of all such payments shall not exceed the amount provided for in the plan and in no event more than sixty percent of the highest three-year average earnings of such employee during the most recent two hundred forty months of the employee’s employment, if the employee was employed that long, and if not, during the total period of the employee’s employment, or the maximum amount fixed by the governing body by ordinance.

Source: S.L. 1941, ch. 207, § 10; R.C. 1943, § 40-4613; S.L. 1953, ch. 259, § 4; 1957 Supp., § 40-4613; S.L. 1963, ch. 297, § 4; 1969, ch. 379, § 2; 1977, ch. 388, § 4.

Collateral References.

Rights in survival benefits under public pension or retirement plan as between designated beneficiary and heirs, legatees, or personal representative of deceased employee, 5 A.L.R.3d 644.

40-46-14. Definitions for benefit purposes.

The benefits provided for in section 40-46-13 shall be subject to the following definitions:

  1. “Child” or “children” means only the surviving issue of a deceased active or retired employee, or the child or children legally adopted by a deceased employee prior to the employee’s retirement from active service, or by a retired employee prior to February 21, 1941.
  2. “Widow” or “husband” means only the surviving spouse of a marriage contracted prior to the retirement of a deceased employee from active service, or of a marriage of a retired employee contracted prior to February 21, 1941.

Source: S.L. 1941, ch. 207, § 10; R.C. 1943, § 40-4614.

40-46-15. Employees of city retire upon request of executive officer.

Any employee of the city who has reached the retirement age or who is unfit, physically or mentally, to continue in the service of the city, upon the request of the executive officer of the city, shall retire from active service, and, if he shall have been employed by the city for periods totaling one hundred twenty months or longer, the board of trustees shall make provision for the payment of a pension, such pension to be in a sum equal to the proportion of a full pension as herein provided which the total number of months employed by the city bears to two hundred forty months.

Source: S.L. 1941, ch. 207, § 12; R.C. 1943, § 40-4615; S.L. 1953, ch. 259, § 5; 1957 Supp., § 40-4615.

40-46-16. Right of retirement once acquired cannot be lost.

After any employee of the city shall become entitled to be retired, such right shall not be lost nor forfeited by discharge or for any other reason.

Source: S.L. 1941, ch. 207, § 8; R.C. 1943, § 40-4616; S.L. 1977, ch. 386, § 2.

40-46-17. Insufficiency of pension fund to meet withdrawals — Apportioning contents of fund to pensioned persons.

Whenever the sums of money in the employees’ pension fund shall be insufficient to meet the demands of the withdrawals due to retirements, the board of trustees, in its judgment, shall apportion among the employees entitled to a pension such amount as is available in the pension fund.

Source: S.L. 1941, ch. 207, § 6; R.C. 1943, § 40-4617.

40-46-18. Reexamination of retired member physically or mentally disabled — Notice — Witnesses.

The board of trustees, at any time, may cause any employee of the city who has been retired by reason of physical or mental disability to be brought before it and again examined by three competent physicians appointed by the board to discover whether such disability continues, whether it can be improved, and whether such retired employee should be continued on the pension roll, and the board may examine witnesses for such purposes. The question of continued disability or ability to perform regular or light duty shall be determined by the concurring report of at least two of the three examining physicians. Such employee shall have reasonable notice that the examination will be made and that the employee shall be present at the time of the taking of any testimony. The employee may examine the witnesses brought before the board and introduce evidence in the employee’s own behalf. All witnesses shall be examined under oath, which may be administered by any member of the board.

Source: S.L. 1941, ch. 207, § 12; R.C. 1943, § 40-4618.

40-46-19. Decision on reexamination is final — Exception.

The decision of the board of trustees upon the re-examination provided for in section 40-46-18 shall be final and conclusive in the absence of fraud, and no appeal shall be allowed therefrom. The disabled employee shall remain upon the pension roll unless and until reinstated in service by reason of the re-examination.

Source: S.L. 1941, ch. 207, § 13; R.C. 1943, § 40-4619.

40-46-20. Employee entitled to refund from fund or partial retirement upon termination of employment with city.

Any employee who shall have contributed to the city employees’ pension fund, and who voluntarily and while in good standing as an employee of said city shall have left the employment of such city, shall be entitled, upon application at the time of such retirement, to a refund of all contributions made by the employee without interest and exclusive of the membership fee, payable in a lump sum. If a participant dies and no dependent benefits are payable, the participant’s named beneficiary or estate shall receive the participant’s contributions without interest, less any benefit payments theretofore received. Any employee who shall have served one hundred eighty months or more, but less than two hundred forty months, and who shall have contributed to the city employees’ pension fund, and who voluntarily and while in good standing as an employee of said city shall have left the employment of such city, shall be entitled to elect retirement instead of refund, but at a pension equal to the proportion of a full pension as herein provided which the total number of months employed under the plan bears to two hundred forty months, but no pension shall be paid while the employee lives until the employee reaches the age of sixty years.

Source: S.L. 1941, ch. 207, § 6; R.C. 1943, § 40-4620; S.L. 1953, ch. 259, § 6; 1957 Supp., § 40-4620; S.L. 1959, ch. 310, § 4; 1963, ch. 297, § 5; 1967, ch. 337, § 1; 1977, ch. 388, § 5.

40-46-21. Warrants on pension fund — Treasurer’s report — Contents.

All pensions paid and all moneys drawn from the pension fund under the provisions of this chapter shall be upon warrants signed by the board of trustees and issued by the treasurer of such board. Such warrants shall designate the person to whom and the purpose for which payment is made. The treasurer’s annual report shall show the receipts and expenditures of the fund for the preceding fiscal year, the money on hand, and how the same is invested. Such report shall be made to the board of trustees and shall be filed with the city auditor.

Source: S.L. 1941, ch. 207, § 14; R.C. 1943, § 40-4621.

40-46-22. Pensions not subject to assignment, debts, execution, or other process. [Repealed]

Repealed by S.L. 1987, ch. 386, § 2.

40-46-23. Question of continuance of employees’ pension plan.

The governing body of a city having an employees’ pension plan may discontinue such plan upon receipt of a petition requesting such discontinuance signed by sixty percent of the employees and pensioners of the city under such plan as of the date of the filing of such petition and upon the subsequent adoption by the governing body of a resolution by two-thirds vote of the members present, stating that the plan is not desirable or workable.

Source: S.L. 1941, ch. 207, § 15; R.C. 1943, § 40-4623; S.L. 1959, ch. 311, § 1.

40-46-24. Form of ballot to be used at election. [Repealed]

Repealed by S.L. 1959, ch. 311, § 3.

40-46-25. Procedure upon discontinuance of employees’ pension or police pension plan.

If the governing body of the city shall determine by a two-thirds vote as provided in section 40-46-23 that the employees’ pension or police pension plan be discontinued, the plan shall be discontinued in such city and the governing body shall proceed to liquidate the pension fund created under such plan. Liquidation shall be accomplished by returning to each employee still in the employ of the city ten days after the date of the adoption of the resolution, provided for in section 40-46-23, the entire amount which has been deducted from the employee’s salary as an assessment or membership fee and then by payment of pension claims theretofore allowed in the same amounts as are then in effect until the death or disqualification of the pension claimant, and thereafter continuing such payments as would have accrued to survivors of such pension claimant under the local pension provisions if the plan had been continued. If the fund is insufficient to return the amount to which each employee is entitled as provided herein and to pay such claims in full, the governing body shall make an annual tax levy, which shall be in addition to any other tax levies authorized by law, in an amount sufficient to assure the payment in full of the pension claims theretofore allowed. If the fund exceeds the amount required to satisfy such returns and such claims, such excess shall be placed in the general fund of the city.

Source: S.L. 1941, ch. 207, § 15; R.C. 1943, § 40-4625; S.L. 1959, ch. 311, § 2; 2015, ch. 439, § 50, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 50 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-46-26. City provision of employee federal social security plan.

From revenues derived from its general fund levy authority, a city may provide its employees with the federal social security plan and pay such city’s share as employer of the cost of providing its employees with the federal social security plan.

Source: S.L. 1959, ch. 309, § 1; 1971, ch. 416, § 2; 2015, ch. 439, § 51, effective for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 51 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Public employees under federal social security, see ch. 52-10.

40-46-27. Pension cost of living increase.

In July of each year, the city employees’ pension board may add, if found actuarially sound, a cost of living increase to the monthly amounts paid beneficiaries. The total monthly payment under this section shall not exceed sixty percent of the monthly salary average during the preceding thirty-six months for the same or comparable position in the city’s employment service as held by the retiree in the last month of the retiree’s employment.

Source: S.L. 1975, ch. 383, § 3; 1977, ch. 388, § 6.

40-46-28. Pension cost of living decrease.

The pensions provided in this chapter may be decreased by the city employee’s pension board if the cost of living goes down.

Source: S.L. 1975, ch. 383, § 4.

CHAPTER 40-47 City Zoning

40-47-01. Cities may zone — Application of regulations.

For the purpose of promoting health, safety, morals, or the general welfare of the community, the governing body of any city may, subject to the provisions of chapter 54-21.3, regulate and restrict the height, number of stories, and the size of buildings and other structures, the percentage of lot that may be occupied, the size of yards, courts, and other open spaces, the density of population, and the location and use of buildings, structures, and land for trade, industry, residence, or other purposes. The regulations may provide that a board of adjustment may determine and vary the application of the regulations in harmony with the regulations’ general purpose and intent and in accordance with general or specific rules contained in the regulations. The governing body of a city may establish institutional controls that address environmental concerns with the department of environmental quality as provided in section 23.1-10-16.

Source: S.L. 1923, ch. 175, § 1; C.L. 1913, 1925 Supp., § 3756a1; S.L. 1929, ch. 181, § 1; R.C. 1943, § 40-4701; S.L. 1963, ch. 298, § 1; 1967, ch. 323, § 211; 1979, ch. 548, § 8; 2005, ch. 242, § 3; 2017, ch. 199, § 41, effective April 29, 2019; 2021, ch. 212, § 17, effective July 1, 2021.

Effective Date.

The 2005 amendment of this section by section 3 of chapter 242, S.L. 2005 became effective March 31, 2005 pursuant to an emergency measure in section 5 of chapter 242, S.L. 2005.

Note.

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

Section 20 of chapter 212, S.L. 2021, provides: “ RETROACTIVE APPLICATION. This Act is retroactive in application.”

Cross-References.

Airport zoning, see ch. 2-04.

Group homes for developmentally disabled persons, zoning, see § 25-16-14.

Hospital, permission to establish in residence block of city required, see § 23-12-04.

Municipal zoning not affected by county zoning except by resolution of governing body, see § 11-33-20.

Regional planning and zoning commissions, see ch. 11-35.

Notes to Decisions

Constitutionality.

Statutory provision granting to cities the power to regulate the height and size of buildings did not deprive the owner of property without due process of law. City of Bismarck v. Hughes, 53 N.D. 838, 208 N.W. 711, 1926 N.D. LEXIS 40 (N.D. 1926).

Amendment of Ordinance.

This statute does not authorize the building inspector or the board of adjustment to amend the ordinance, so as to authorize the erection of a building which is forbidden by the ordinance. Livingston v. Peterson, 59 N.D. 104, 228 N.W. 816, 1930 N.D. LEXIS 128 (N.D. 1930).

Compliance with Regulations.

Public notice of meeting to consider rezoning portions of city industrial park was adequate under city ordinance for amending zoning plan, and provided fair notice to plaintiffs. Bigwood v. City of Wahpeton, 1997 ND 124, 565 N.W.2d 498, 1997 N.D. LEXIS 127 (N.D. 1997).

Enforcement.

It is within the prerogative of the local authorities to determine the means and methods for enforcing city zoning ordinances, and a municipal government may confer standing upon its citizens or property owners to aid in zoning enforcement. Miller v. Rugby Planning & Zoning Comm'n, 421 N.W.2d 480, 1988 N.D. LEXIS 83 (N.D. 1988).

District court properly enjoined landowners from parking heavy construction equipment on the premises pursuant to former Minot, N.D. Zoning Ordinance No. 2223 as the City could validly consider aesthetics under its authority to zone for the purpose of promoting the general welfare of the community under N.D.C.C. § 40-47-01; the zoning ordinance gave adequate warning of the proscribed conduct, and the district court’s finding that the landowners did not have a permissible “home occupation” under the zoning ordinance was not clearly erroneous. City of Minot v. Boger, 2008 ND 7, 744 N.W.2d 277, 2008 N.D. LEXIS 10 (N.D. 2008).

Facing of Buildings.

This statute does not give the city authority to require the owners of lots to face buildings in any direction or upon any street. Williams v. Fargo, 63 N.D. 183, 247 N.W. 46, 1933 N.D. LEXIS 169 (N.D. 1933).

Improper Alteration of Permit.

Where city gave property owner a conditional-use permit after a review process initiated by owner and during which owner disclosed his intent to use and rent automatic weapons in his commercial firing range, owner made substantial expenditures which he would not have made but for the city’s approval of the conditional-use permit, and city subsequently altered the permit by amending the ordinance regulating commercial firing ranges, and did not support that alteration by making a record of changed circumstances or the existence of a public hazard unknown and not considered during the original permit process, the record supported the trial court’s conclusion that the city was estopped from denying damages to owner in these unique circumstances. Buegel v. Grand Forks, 475 N.W.2d 133, 1991 N.D. LEXIS 176 (N.D. 1991).

Collateral References.

Constitutionality of zoning based on size of commercial or industrial enterprises or units, 7 A.L.R.2d 1007.

Change in ownership of nonconforming business or use as affecting right to continuance thereof, 9 A.L.R.2d 1039.

Validity of zoning ordinance or similar public regulation requiring consent of neighboring property owners to permit or sanction specified uses or construction of buildings, 21 A.L.R.2d 551.

Zoning regulations applicable to tourists or trailer camps, motor courts or motels, 22 A.L.R.2d 774, 793.

Violation of zoning ordinance or regulation as affecting or creating liability for injuries or death, 31 A.L.R.2d 1469.

Validity of zoning regulation prohibiting residential use in industrial district, 38 A.L.R.2d 1141.

Validity of zoning regulations with respect to uncertainty and indefiniteness of district boundary lines, 39 A.L.R.2d 766.

Permissible activities under zoning laws permitting greenhouses and nurseries, 40 A.L.R.2d 1459.

What zoning regulations are applicable to territory annexed to a municipality, 41 A.L.R.2d 1463.

What is a “club” or “clubhouse” within provisions of zoning regulations, 52 A.L.R.2d 1098.

Attack on validity of zoning statute, ordinance, or regulation on ground of improper delegation of authority to board or officer, 58 A.L.R.2d 1083.

Applicability of zoning regulations to governmental projects or activities, 61 A.L.R.2d 970.

Variance or exception with respect to access to industrial, commercial, or business premises over premises differently zoned, 63 A.L.R.2d 1446, 1450.

What is a lodginghouse or boardinghouse within provisions of zoning ordinance or regulation, 64 A.L.R.2d 1167.

Zoning regulations as to gasoline filling stations, 75 A.L.R.2d 168.

Zoning regulations as to shopping centers, 76 A.L.R.2d 1172.

Validity and construction of statutory notice requirements prerequisite to adoption or amendment of zoning ordinance or regulation, 96 A.L.R.2d 449.

Application of zoning regulations to automatic vending machines, 11 A.L.R.3d 1004.

Aesthetic objectives or considerations as affecting validity of zoning ordinance, 21 A.L.R.3d 1222.

Construction and effect of zoning provision permitting accessory use for “professional office”, 24 A.L.R.3d 1128.

Application of zoning regulations to college fraternities or sororities, 25 A.L.R.3d 921.

Validity and construction of zoning ordinance regulating architectural style or design of structure, 41 A.L.R.3d 1397.

Buffer provision in zoning ordinance as applicable to abutting land in adjoining municipality, 48 A.L.R.3d 1303.

Standing of municipal corporation or other governmental body to attack zoning of land lying outside its borders, 49 A.L.R.3d 1126.

Validity of ordinance zoning entire municipality for residential use, 54 A.L.R.3d 1282.

Zoning: right to resume nonconforming use of premises after involuntary break in the continuity of nonconforming use caused by difficulties unrelated to governmental activity, 56 A.L.R.3d 14.

Zoning: right to resume nonconforming use of premises after involuntary break in the continuity of nonconforming use caused by governmental activity, 56 A.L.R.3d 138.

Validity of regulations restricting height of free standing advertising signs, 56 A.L.R.3d 1207.

Zoning: right to resume nonconforming use of premises after voluntary or unexplained, break in the continuity of nonconforming use, 57 A.L.R.3d 279.

Zoning: right to repair or reconstruct building operating as nonconforming use, after damage or destruction by fire or other casualty, 57 A.L.R.3d 419.

Validity and construction of zoning regulation respecting permissible use as affected by division of lot or parcel by zone boundary line, 58 A.L.R.3d 1241.

Applicability of zoning regulations to waste disposal facilities of state or local governmental entities, 59 A.L.R.3d 1244.

What constitutes “church”, “religious use”, or the like within zoning ordinance, 62 A.L.R.3d 197.

Validity and construction zoning ordinance requiring developer to devote specified part of development to low- and moderate-income housing, 62 A.L.R.3d 880.

What constitutes “school”, “educational use”, or the like within zoning ordinance, 64 A.L.R.3d 1087.

Zoning regulations as applied to colleges, universities, or similar institutions for higher education, 64 A.L.R.3d 1138.

Validity, construction, and effect of agreement to rezone, or amendment to zoning ordinance, creating special restrictions or conditions not applicable to other property similarly zoned, 70 A.L.R.3d 125.

Adoption of zoning ordinance or amendment thereto through initiative process, 72 A.L.R.3d 991.

Adoption of zoning ordinance or amendment thereto as subject of referendum, 72 A.L.R.3d 1030.

Zoning regulations as applied to private and parochial schools below the college level, 74 A.L.R.3d 14.

Zoning regulations as applied to public elementary and high schools, 74 A.L.R.3d 136.

Validity and construction of ordinance prohibiting roof signs, 76 A.L.R.3d 1162.

Zoning: regulations creating and placing “floating zones”, 80 A.L.R.3d 95.

Applicability of zoning regulation to nongovernmental lessee of government-owned property, 84 A.L.R.3d 1187.

Applicability of zoning regulations to projects of nongovernmental public utility as affected utilities having power of eminent domain, 87 A.L.R.3d 1265.

Zoning: building in course of construction as establishing valid nonconforming use or vested right to complete construction for intended use, 89 A.L.R.3d 1051.

Validity of zoning ordinances prohibiting or regulating outside storage of house trailers, motor homes, campers, vans, and the like, in residential neighborhoods, 95 A.L.R.3d 378.

Zoning regulations prohibiting or limiting fences, hedges, or walls, 1 A.L.R.4th 373.

Enforcement of zoning regulations affected by other violations, 4 A.L.R.4th 462.

Construction of new building or structure on premises devoted to nonconforming use as violation of zoning ordinance, 10 A.L.R.4th 1122.

What constitutes accessory or incidental use of religious or educational property within zoning ordinance, 11 A.L.R.4th 1084.

Validity, construction, and effect of statute requiring consultation with, or approval of, local governmental unit prior to locating group home, halfway house, or similar community residence for the mentally ill, 51 A.L.R.4th 1096.

Change in area or location of nonconforming use as violation of zoning ordinance, 56 A.L.R.4th 769.

What constitutes “incidental” or “accessory” use of property zoned, and primarily used, for business or commercial purposes, 60 A.L.R.4th 907.

Addition of another activity to existing nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 724.

Change in volume, intensity, or means of performing nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 806.

Change in type of activity of nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 902.

Alteration, extension, reconstruction, or repair of nonconforming structure or structure devoted to nonconforming use as violation of zoning ordinance, 63 A.L.R.4th 275.

Validity of zoning laws setting minimum lot size requirements, 1 A.L.R.5th 622.

Construction and application of zoning laws setting minimum lot size requirements, 2 A.L.R.5th 553.

Validity of provisions for amortization of nonconforming uses, 8 A.L.R.5th 391.

Construction and application of terms “agricultural,” “farm,” “farming,” or the like, in zoning regulations, 38 A.L.R.5th 357.

Activities in preparation for building as establishing valid nonconforming use or vested right to engage in construction for intended use, 38 A.L.R.5th 737.

Determination whether zoning or rezoning of particular parcel constitutes illegal spot zoning, 73 A.L.R.5th 223.

Validity, Construction, and Application of Exclusion or Inclusion of Religious Uses/Places of Worship in Single-Family Residential Zoning Districts, 31 A.L.R.6th 395.

Propriety of Federal Court’s Abstention, Under Younger v. Harris, 401 U.S. 37, 91 S. Ct. 756, 27 L. Ed. 2d 669 (1971), to Avoid Interference in Ongoing State Proceedings Involving Land Use and Zoning. 55 A.L.R. Fed 2d 261.

Law Reviews.

Exclusionary Zoning, William P. Zuger, 50 N.D. L. Rev. 45 (1973).

North Dakota’s Historic Preservation Law, Robert E. Beck, 53 N.D. L. Rev. 177 (1976).

Powers and Procedures of City and Village Governing Board, 31 N.D. L. Rev. 137 (1955).

Zoning and the Amortization of Nonconforming Uses, 54 N.D. L. Rev. 231 (1977).

Zoning Law and Extractive Industry — The Michigan Experience, Clan Crawford, Jr., 51 N.D. L. Rev. 341 (1975).

40-47-01.1. Extraterritorial zoning — Mediation — Determination by administrative law judge — Definition.

    1. A city may, by ordinance, extend the application of a city’s zoning regulations to any quarter quarter section of unincorporated territory if a majority of the quarter quarter section is located within the following distance of the corporate limits of the city:
      1. One mile [1.61 kilometers] if the city has a population of fewer than five thousand. A city that has exercised its authority under this subdivision has joint zoning and subdivision regulation jurisdiction from one-half mile [.80 kilometer] to one mile [1.61 kilometers] with the other political subdivision.
      2. Two miles [3.22 kilometers] if the city has a population of five thousand or more, but fewer than twenty-five thousand. A city that has exercised its authority under this subdivision has joint zoning and subdivision regulation jurisdiction from one mile [1.61 kilometers] to two miles [3.22 kilometers] with the other political subdivision.
      3. Four miles [6.44 kilometers] if the city has a population of twenty-five thousand or more. A city that has exercised its authority under this subdivision has joint zoning and subdivision regulation jurisdiction from two miles [3.22 kilometers] to four miles [6.44 kilometers] with the other political subdivision.
    2. Any section or portion of a section of unincorporated territory within the area of joint zoning and subdivision regulation jurisdiction in which a plat or site plan has been presented before May 1, 2009, remains subject to the zoning designations and the regulations in place on May 1, 2009, unless changed as allowed under this section.
    3. The extraterritorial zoning jurisdiction and authority to receive applications and issue permits under this section may be changed by written agreement between the city and the other political subdivision.
  1. Joint jurisdiction is jurisdiction in which the other political subdivision has jurisdiction to receive applications and issue permits and impose administrative fees for applications and permits. In addition, under this jurisdiction the other political subdivision may adopt, modify, and enforce any zoning designation or regulation and approve any subdivision plat or regulation. For a decision to be final, the other political subdivision shall give written notice to the city. The city may request negotiation as to any decision made by the other political subdivision under the other political subdivision’s jurisdiction within thirty days of notice. If negotiation is not requested, the decision of the other political subdivision is final. If the governing body of the other political subdivision and the city do not come to an agreement as to the disputed zone or subdivision regulation within thirty days of request for negotiation, the dispute must be submitted to a committee for mediation. The committee must be comprised of one member appointed by the governor and two members of the governing body of the other political subdivision and two members of the governing body of the city. The governor’s appointee shall arrange and preside over the meeting and act as mediator at the meeting. A meeting may be continued until the dispute has been resolved or until the mediator determines that continued mediation is no longer worthwhile. If the mediation committee is unable to resolve the dispute to the satisfaction of the governing bodies, the dispute must be resolved by the board of county commissioners.
  2. Notwithstanding subsection 2, in any section or portion of a section of unincorporated territory in which there would otherwise be joint jurisdiction and in which a plat or site plan has been presented before May 1, 2009, the city has jurisdiction to receive applications and issue permits and impose administrative fees for applications and permits relating to zoning and subdivision regulation. In addition, under this jurisdiction the city may adopt, modify, and enforce any zoning designation or regulation and approve any subdivision plat or regulation. For a decision of the city made after May 1, 2009, to be final, the city shall give written notice of the decision of the governing body of the political subdivision that would otherwise have jurisdiction. The governing body may request negotiation as to any decision made by the city under the city’s jurisdiction within thirty days of notice. If negotiation is not requested, the decision of the city is final. If the city and governing body of the political subdivision that would otherwise have jurisdiction do not come to an agreement as to the disputed zoning or subdivision regulation within thirty days of the request for negotiation, the dispute must be submitted to a committee for mediation. The committee must be comprised of one member appointed by the governor and two members of the governing body of the other political subdivision and two members of the governing body of the city. The governor’s appointee shall arrange and preside over the meeting and act as mediator at the meeting. A meeting may be continued until the dispute has been resolved or until the mediator determines that continued mediation is no longer worthwhile. If the mediation committee is unable to resolve the dispute to the satisfaction of the governing bodies, the dispute must be resolved by the board of county commissioners.
  3. If a quarter quarter section line divides a platted lot and the majority of that platted lot lies within the quarter quarter section, a city may apply its extraterritorial zoning authority to the remainder of that platted lot. If the majority of the platted lot lies outside the quarter quarter section, the city may not apply its extraterritorial zoning authority to any of that platted lot.
  4. A city exercising its extraterritorial zoning authority shall hold a zoning transition meeting if the territory to be extraterritorially zoned is currently zoned. The city’s zoning or planning commission shall provide at least fourteen days’ notice of the meeting to the zoning board or boards of all political subdivisions losing their partial zoning authority. The purpose of the zoning transition meeting is to review existing zoning rules, regulations, and restrictions currently in place in the territory to be extraterritorially zoned and to plan for an orderly transition. The zoning transition meeting must take place before the city’s adoption of an ordinance exercising extraterritorial zoning.
  5. If two or more cities have boundaries at a distance where there is an overlap of extraterritorial zoning authority under this section, the governing bodies of the cities may enter into an agreement regarding the extraterritorial zoning authority of each city. The agreement must be for a specific term and is binding upon the cities unless the governing bodies of the cities agree to amend or rescind the agreement or unless determined otherwise by an administrative law judge in accordance with this chapter. If a dispute arises concerning the extraterritorial zoning authority of a city and the governing bodies of the cities involved fail to resolve the dispute, the dispute must be submitted to a committee for mediation. The committee must be comprised of one member appointed by the governor, one member of the governing body of each city, and one member of the planning commission of each city who resides outside the corporate city limits. The governor’s appointee shall arrange and preside over the meeting and act as mediator at the meeting. A meeting may be continued until the dispute has been resolved or until the mediator determines that continued mediation is no longer worthwhile.
  6. If the mediation committee is unable to resolve the dispute to the satisfaction of the governing bodies of all the cities involved, the governing body of any of the cities may petition the office of administrative hearings to appoint an administrative law judge to determine the extraterritorial zoning authority of the cities in the disputed area. A hearing may not be held until after at least two weeks’ written notice has been given to the governing bodies of the cities involved in the dispute. At the hearing, the governor’s appointee who mediated the meetings under subsection 6 shall provide information to the administrative law judge on the dispute between the cities involved and any proposed resolutions or recommendations made by a majority of the committee members. Any resident of, or person owning property in, a city involved in the dispute or the unincorporated territory that is the subject of the proposed extraterritorial zoning, a representative of such a resident or property owner, and any representative of a city involved, may appear at the hearing and present evidence on any matter to be determined by the administrative law judge. A decision by the administrative law judge is binding upon all the cities involved in the dispute and remains effective until the governing bodies of the cities agree to a change in the zoning authority of the cities. The governing body of a city may request a review of a decision of an administrative law judge due to changed circumstances at any time ten years after the decision has become final. An administrative law judge shall consider the following factors in making a decision under this subsection:
    1. The proportional extraterritorial zoning authority of the cities involved in the dispute;
    2. The proximity of the land in dispute to the corporate limits of each city involved;
    3. The proximity of the land in dispute to developed property in the cities involved;
    4. Whether any of the cities has exercised extraterritorial zoning authority over the disputed land;
    5. Whether natural boundaries such as rivers, lakes, highways, or other physical characteristics affecting the land are present;
    6. The growth pattern of the cities involved in the dispute; and
    7. Any other factor determined to be relevant by the administrative law judge.
  7. For purposes of this section, the population of a city must be determined by the last official regular or special federal census. If a city has incorporated after a census, the population of the city must be determined by a census taken in accordance with chapter 40-22.
  8. When a portion of the city is attached to the bulk of the city by a strip of land less than one hundred feet [30.48 meters] wide, that portion and strip of land must be disregarded when determining the extraterritorial zoning limits of the city. This subsection does not affect the ability of a city to zone land within its city limits.
  9. For the purposes of this section, a section or a quarter quarter section is as determined in the manner provided by 2 Stat. 313 [43 U.S.C. 752]. When appropriate, the phrase “quarter quarter section” refers to the equivalent government lot.
  10. As used in this section, “other political subdivision” means a political subdivision, not including another city, which would otherwise have zoning or subdivision regulation jurisdiction.

Source: S.L. 1975, ch. 385, § 2; 1981, ch. 421, § 1; 1997, ch. 354, § 1; 1999, ch. 367, § 1; 2001, ch. 55, § 11; 2007, ch. 351, § 1; 2009, ch. 350, § 1.

Effective Date.

The 2009 amendment of this section by section 1 of chapter 350, S.L. 2009 became effective May 5, 2009, pursuant to an emergency clause in section 3 of chapter 350, S.L. 2009.

The 2007 amendment of this section by section 1 of chapter 351, S.L. 2007 is effective through July 31, 2009, and after that date is ineffective, pursuant to section 6 of chapter 351, S.L. 2007.

Note.

S.L. 2009, ch. 350, § 2 provides:

“LEGISLATIVE INTENT. It is the intent of the sixty-first legislative assembly that land use regulations under consideration by local governments be readily available to the public. Local governments are encouraged to jointly discuss their land use regulations and consider the cumulative impact of local regulations.”

S.L. 2007, ch. 351, § 5 provides:

“APPLICATION. Any extraterritorial zoning regulation in effect before May 1, 2007, which extends beyond the extraterritorial zoning authority provided by this Act is not affected by the reduction in the extraterritorial zoning limits in section 1 of this Act” [which amended this section].

Cross-References.

Zoning of territory adjacent to city, see §§ 11-35-02, 40-48-18.

Notes to Decisions

Conflict with Township Zoning.

This section is controlling over the zoning authority of townships provided in N.D.C.C. §§ 58-03-11 to 58-03-14; therefore, a city having a population of more than twenty-five thousand has exclusive zoning control over all territory located within two miles of its city limits despite fact that an organized township has already exercised zoning jurisdiction within the two-mile limit. Apple Creek Township v. Bismarck, 271 N.W.2d 583, 1978 N.D. LEXIS 181 (N.D. 1978).

“Unincorporated Territory”.

“Unincorporated territory” is any territory not located within the boundaries of another incorporated city. Apple Creek Township v. Bismarck, 271 N.W.2d 583, 1978 N.D. LEXIS 181 (N.D. 1978).

Collateral References.

Population: validity of statutory classifications based on population — zoning, building, and land use statutes, 98 A.L.R.3d 679.

40-47-01.2. Agreements to not oppose annexation void.

The zoning commission or governing body may not require as a condition of approval of a request to amend or modify a zoning regulation the execution of an agreement by the owner of the property requesting the amendment or modification stating that the owner will not oppose the annexation of the property by the municipality. This section does not apply to property located within one quarter mile [.40 kilometer] of the municipality’s corporate limits or to an agreement that contains a provision whereby the municipality agrees to provide a municipal service or services before the annexation. Any agreement entered in violation of this section is void.

Source: S.L. 1997, ch. 355, § 1.

Note

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

40-47-01.3 Extraterritorial zoning — Limitation.

Notwithstanding any other provision of law, a city that exercises extraterritorial jurisdiction under this chapter may not impose building permit fees on any section of unincorporated territory which are higher than the building permit fees within the city exercising the jurisdiction.

Source: S.L. 2019, ch. 339, § 1, effective August 1, 2019.

40-47-02. Division of city into districts to carry out regulations.

The governing body may divide the city into districts of such number, shape, and area as may be deemed best suited to carry out the purposes of this chapter, and may regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of buildings, structures, or land within such districts. All regulations shall be uniform for each class or kind of buildings throughout each district, but the regulations in one district may differ from those in other districts.

Source: S.L. 1923, ch. 175, § 2; C.L. 1913, 1925 Supp., § 3756a2; R.C. 1943, § 40-4702.

40-47-03. Regulation for zoning made for what purposes.

The regulations provided for in this chapter shall be made in accordance with a comprehensive plan and shall be designed to:

  1. Lessen congestion in the streets;
  2. Provide for emergency management. “Emergency management” means a comprehensive integrated system at all levels of government and in the private sector which provides for the development and maintenance of an effective capability to mitigate, prepare for, respond to, and recover from known and unforeseen hazards or situations, caused by an act of nature or man, which may threaten, injure, damage, or destroy lives, property, or our environment;
  3. Promote health and the general welfare;
  4. Provide adequate light and air;
  5. Prevent the overcrowding of land;
  6. Avoid undue concentration of population; and
  7. Facilitate adequate provisions for transportation, water, sewage, schools, parks, and other public requirements.

The regulations shall be made with reasonable consideration as to the character of each district and its peculiar suitability for particular uses with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout the city. The comprehensive plan shall be a statement in documented text setting forth explicit goals, objectives, policies, and standards of the jurisdiction to guide public and private development within its control.

Source: S.L. 1923, ch. 175, § 3; C.L. 1913, 1925 Supp., § 3756a3; R.C. 1943, § 40-4703; S.L. 1981, ch. 148, § 2; 1999, ch. 542, § 3.

Notes to Decisions

Comprehensive Plan.

City did not err in denying property owners’ request for amendments to an area growth plan and zoning map to have significant portions of their property rezoned as “general commercial” because the decision to deny the owners’ request was based on a planning department report, which formed a reasoned and rational analysis of the issues underlying the amendments; the city had a comprehensive plan for zoning, as required by statute, and did not engage in illegal contract zoning with the owners. Hector v. City of Fargo, 2009 ND 14, 760 N.W.2d 108, 2009 N.D. LEXIS 20 (N.D. 2009).

Reasonable Ordinance.

An ordinance which operates equally and alike upon all residents of each district is not unreasonable or arbitrary and is clearly within the power granted to the city by the legislature. City of Bismarck v. Hughes, 53 N.D. 838, 208 N.W. 711, 1926 N.D. LEXIS 40 (N.D. 1926).

Law Reviews.

Various Aspects of Flood Plain Zoning, 55 N.D. L. Rev. 429 (1979).

40-47-04. Determining and enforcing regulations — Public hearing and notice thereof — Publication of regulations, restrictions, and boundaries.

  1. The governing body of a city which uses zoning regulations shall provide for the manner in which the regulations and restrictions must be established, enforced, or supplemented, and for the manner in which the boundaries of the districts must be established and from time to time changed. A copy of each proposed regulation, restriction, or boundary must be filed with the city auditor. No regulation, restriction, or boundary may become effective until after a public hearing at which parties in interest and citizens shall have an opportunity to be heard. Notice of the hearing must be published once a week for two successive weeks before the time set for the hearing in the official newspaper of the city. The notice must contain the following items:
    1. The time and place of the hearing.
    2. A description of any property involved in any zoning change, by street address if streets have been platted or designated in the area affected.
    3. A description of the nature, scope, and purpose of the proposed regulation, restriction, or boundary.
    4. A statement of the times at which it will be available to the public for inspection and copying at the office of the city auditor.
  2. Upon establishment of any regulation, restriction, or boundary hereunder, the governing body of a city shall file a certified copy thereof with the city auditor and shall cause notice of the same to be published in the official newspaper of the city. The notice must describe the nature, scope, and purpose of the regulation, restriction, or boundary and must state the times at which it will be available to the public for inspection and copying at the office of the city auditor.
  3. The governing body of a city, a city zoning commission, and a board of adjustment shall state the grounds upon which any request for a zoning amendment or variance is approved or disapproved, and written findings upon which the decision is based must be included within the records of the governing body, commission, or board.

Source: S.L. 1923, ch. 175, § 4; C.L. 1913, 1925 Supp., § 3756a4; R.C. 1943, § 40-4704; S.L. 1971, ch. 417, § 1; 1977, ch. 110, § 3; 2007, ch. 107, § 3.

Effective Date.

The 2007 amendment of this section by section 3 of chapter 107, S.L. 2007 became effective August 1, 2007.

Notes to Decisions

Comprehensive Plan.

City did not err in denying property owners’ request for amendments to an area growth plan and zoning map to have significant portions of their property rezoned as “general commercial” because the decision to deny the owners’ request was based on a planning department report, which formed a reasoned and rational analysis of the issues underlying the amendments; the city had a comprehensive plan for zoning, as required by statute, and did not engage in illegal contract zoning with the owners. Hector v. City of Fargo, 2009 ND 14, 760 N.W.2d 108, 2009 N.D. LEXIS 20 (N.D. 2009).

Findings Not Arbitrary, Capricious, or Unreasonable.

Property owner had not shown that the findings denying his request for a variance were arbitrary, capricious, or unreasonable where even though the written findings were made at a later time, they summarized the hearings and the cited ordinances related to the issues involved at the hearings. Johnson v. City of Burlington, 2020 ND 81, 942 N.W.2d 816, 2020 N.D. LEXIS 81 (N.D. 2020).

Standing to Seek Enforcement of Zoning Ordinances.

City had authority to enact ordinance which conferred standing upon any “affected citizen or property owner” to seek the enforcement of the city’s zoning ordinances. Munch v. Mott, 311 N.W.2d 17, 1981 N.D. LEXIS 381 (N.D. 1981).

Collateral References.

Construction and application of statute or ordinance requiring notice as prerequisite to granting variance or exception to zoning requirement, 38 A.L.R.3d 167.

40-47-05. Amendments to or repeals of zoning regulations — Protest — Required vote for passage.

Regulations, restrictions, and boundaries may be amended, supplemented, changed, modified, or repealed from time to time. If a protest against a change, supplement, modification, amendment, or repeal is signed by the owners of twenty percent or more:

  1. Of the area of the lots included in such proposed change; or
  2. Of the area adjacent, extending one hundred fifty feet [45.72 meters] from the area to be changed, excluding the width of streets,

the amendment shall not become effective except by the favorable vote of three-fourths of all the members of the governing body of the city. The provisions of section 40-47-04 relating to public hearings, official notice, and publication of regulations, restrictions, and boundaries shall apply equally to all changes or amendments provided in this section; provided, that protests in writing must be filed with the city auditor prior to the time set for the hearing.

Source: S.L. 1923, ch. 175, § 5; C.L. 1913, 1925 Supp., § 3756a5; R.C. 1943, § 40-4705; S.L. 1953, ch. 260, § 1; 1957, ch. 290, § 1; 1957 Supp., § 40-4705; S.L. 1977, ch. 110, § 4.

Notes to Decisions

Applicability.

This section applies to the establishment of an original zoning plan. Bigwood v. City of Wahpeton, 1997 ND 124, 565 N.W.2d 498, 1997 N.D. LEXIS 127 (N.D. 1997).

40-47-06. Zoning commission — Appointment — Duties — Preliminary and final report.

The governing body of a city desiring to avail itself of the powers conferred by this chapter shall appoint a commission, to be known as the zoning commission, to recommend the boundaries of the various original districts and appropriate regulations to be enforced therein. In addition to the members appointed by the city, the zoning commission shall include at least one person residing outside of the corporate limits of a city having a population of less than five thousand, two persons residing outside the corporate limits of a city having a population of five thousand or more, but less than twenty-five thousand, or three persons residing outside the corporate limits of a city having a population of twenty-five thousand or more if zoning authority is exercised pursuant to section 40-47-01.1. Such persons shall be appointed by the board or boards of county commissioners of the county or counties within which such zoning authority is to be exercised and shall reside within the territorial limits of the zoning regulation authority exercised by the city, if such persons are available and will serve on the zoning commission. Of the members of the commission appointed by a board or boards of county commissioners pursuant to this section, the first member appointed shall hold office for five years, the second member appointed shall hold office for three years, and the third member appointed shall hold office for one year. Thereafter, the members shall be appointed for terms of five years. Such commission shall make a preliminary report and hold public hearings thereon before submitting its final report. The governing body shall not hold its public hearings or take action until it has received the final report of the zoning commission. If a city has a planning commission, it may be appointed as the zoning commission.

Source: S.L. 1923, ch. 175, § 6; C.L. 1913, 1925 Supp., § 3756a6; R.C. 1943, § 40-4706; S.L. 1975, ch. 385, § 3; 2007, ch. 351, § 2.

Effective Date.

The 2007 amendment of this section by section 2 of chapter 351, S.L. 2007 is effective through July 31, 2009, and after that date is ineffective, pursuant to section 6 of chapter 351, S.L. 2007.

40-47-07. Board of adjustment — Members — Term — Hear and decide appeals and review orders.

The governing body may provide for the appointment of a board of adjustment consisting of five members, each member to be appointed for a term of three years. The board of adjustment shall hear and decide appeals from and shall review any order, requirement, decision, or determination made by an administrative official charged with the enforcement of any ordinance adopted pursuant to this chapter. It shall hear and decide all matters referred to it or upon which it is required to pass under any such ordinance. The concurring vote of four members of the board shall be necessary to reverse any order, requirement, decision, or determination of any such administrative official or to decide in favor of the applicant any matter upon which it is required to pass under any such ordinance, or to effect any variation in such ordinance. Upon request of the board, the governing body shall have the right to appoint an alternate member of said board of adjustment, who shall sit as an active member when and if a member of said board is unable to serve at any hearing.

Source: S.L. 1923, ch. 175, § 7; C.L. 1913, 1925 Supp., § 3756a7; R.C. 1943, § 40-4707; S.L. 1971, ch. 418, § 1.

Notes to Decisions

Appeals.

This section authorizes appeals from a decision of an administrative official, not a legislative body; ordinance enacted pursuant to this section which provided for an appeal from the city commission, a legislative body, to board of adjustment was invalid as an unlawful delegation of legislative powers. Cowan v. Stroup, 284 N.W.2d 447, 1979 N.D. LEXIS 311 (N.D. 1979).

Collateral References.

Remedies to compel municipal officials to enforce zoning regulations, 35 A.L.R.2d 1135, 1136.

Standing of lot owner to challenge validity or regularity of zoning changes dealing with neighboring property, 37 A.L.R.2d 1143.

Right to intervene in court review of zoning proceeding, 46 A.L.R.2d 1059.

Disqualification for bias or interest of administrative officer sitting in zoning proceeding, 10 A.L.R.3d 694.

Cross-examination: right to cross-examination of witnesses in hearings before administrative zoning authorities, 27 A.L.R.3d 1304.

New application: zoning board’s grant of new application for zoning change, variance, or special exception after denial of previous application covering same property or part thereof, 52 A.L.R.3d 494.

Zoning: right to repair or reconstruct building operating as nonconforming use, after damage or destruction by fire or other casualty, 57 A.L.R.3d 419.

Standing of owner of property adjacent to zoned property, but not within territory of zoning authority, to attack zoning, 69 A.L.R.3d 805.

Zoning: validity and construction of provisions of zoning statute or ordinance regarding protest by neighboring property owners, 7 A.L.R.4th 732.

Construction of new building or structure on premises devoted to nonconforming use as violation of zoning ordinance, 10 A.L.R.4th 1122.

Standing of zoning board of appeals or similar body to appeal reversal of its decision, 13 A.L.R.4th 1130.

Change in area or location of nonconforming use as violation of zoning ordinance, 56 A.L.R.4th 769.

Addition of another activity to existing nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 724.

Change in volume, intensity, or means of performing nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 806.

Change in type of activity of nonconforming use as violation of zoning ordinance, 61 A.L.R.4th 902.

Alteration, extension, reconstruction, or repair of nonconforming structure or structure devoted to nonconforming use as violation of zoning ordinance, 63 A.L.R.4th 275.

40-47-08. Appeal to board of adjustment — Taking — Filing — Time — Transmitting record.

An appeal to the board of adjustment may be taken by any person aggrieved or by any officer, department, board, or bureau of the city. The appeal shall be taken within the time prescribed by rule of the board by filing with the officer from whom the appeal is taken and with the board of adjustment a notice of appeal, specifying the grounds thereof. The officer from whom the appeal is taken forthwith shall transmit to the board of adjustment all the papers constituting the record upon which the action appealed from was taken.

Source: S.L. 1923, ch. 175, § 7; C.L. 1913, 1925 Supp., § 3756a7; R.C. 1943, § 40-4708.

40-47-09. Hearing of appeal by board of adjustment — Notice — Authority of board — Items taken into consideration by board.

The board of adjustment shall fix a reasonable time for the hearing of the appeal and shall give due notice thereof to the parties. It shall decide the appeal within a reasonable time. Upon the hearing, any party may appear in person or by agent or by attorney. The board may reverse or affirm, in whole or in part, or may modify, the order, requirement, decision, or determination appealed from, and shall make such order, requirement, decision, or determination as in its opinion ought to be made in the premises, and to that end, the board shall have all the powers of the officer from whom the appeal is taken. If there is practical difficulty or unnecessary hardship in the way of carrying out the strict letter of the ordinance, the board, in passing upon an appeal, may vary or modify any of the regulations or provisions of the ordinance relating to the use, construction, or alteration of buildings or structures or the uses of land so that the spirit of the ordinance shall be observed, public safety and welfare secured, and substantial justice done.

Source: S.L. 1923, ch. 175, § 7; C.L. 1913, 1925 Supp., § 3756a7; R.C. 1943, § 40-4709.

Notes to Decisions

Applicability.

N.D.C.C. § 40-47-09 did not apply where the city had not created a board of adjustment and no appeal to a board of adjustment was utilized in the property owner’s request for a variance. Johnson v. City of Burlington, 2020 ND 81, 942 N.W.2d 816, 2020 N.D. LEXIS 81 (N.D. 2020).

40-47-10. Effect of appeal to board of adjustment — Restraining order.

An appeal to the board of adjustment stays all proceedings in furtherance of the action appealed from unless the officer from whom the appeal is taken certifies to the board of adjustment after the notice of appeal shall have been filed with the officer that by reason of facts stated in the certificate a stay, in the officer’s opinion, would cause imminent peril to life or property. In such a case, proceedings shall not be stayed except by a restraining order which may be granted by the board of adjustment or by a court of record on application and on due cause shown after notice to the officer from whom the appeal is taken.

Source: S.L. 1923, ch. 175, § 7; C.L. 1913, 1925 Supp., § 3756a7; R.C. 1943, § 40-4710.

40-47-11. Determination of board of adjustment reviewable.

Every decision of the board of adjustment is subject to review in the following manner:

  1. A decision of the board of adjustment may be appealed to the governing body of the city by either the aggrieved applicant or by any officer, department, board, or bureau of the city. The appeal must be filed with the city auditor within fifteen days after notice of the decision of the board of adjustment. The governing body of the city shall fix a time, within thirty days, for the hearing of the appeal and shall give due notice of the hearing to the parties. The governing body of the city shall decide the appeal within a reasonable time. Any party may appear in person or by agent or by attorney at the hearing of the governing body on the appeal. The governing body of the city may reverse or affirm the decision of the board of adjustment, in whole or in part, or may modify the order, decision, or determination appealed.
  2. A decision of the governing body of the city on an appeal from a decision of the board of adjustment may be appealed to the district court in the manner provided in section 28-34-01.

Source: S.L. 1923, ch. 175, § 7; C.L. 1913, 1925 Supp., § 3756a7; R.C. 1943, § 40-4711; S.L. 1985, ch. 466, § 1; 1995, ch. 315, § 2.

Notes to Decisions

Arbitrary, Capricious, or Unreasonable Decision.

District court did not err in dismissing city’s request for affirmative injunctive relief requiring removal of uncovered, wooden deck, where city’s decision that deck was in violation of its zoning ordinance was based on incorrect interpretation of ordinance, and thus arbitrary, capricious, or unreasonable. City of Fargo v. Ness, 551 N.W.2d 790, 1996 N.D. LEXIS 186 (N.D. 1996).

Proper Appellants.

Dismissal of the residents' appeal of a city decision granting a bank zoning variances was affirmed where, in the context of decisions about variances, the term applicant was construed to mean the entity applying for a variance, the residents had not applied for the variance, and as a result, they were not aggrieved applicants under N.D.C.C. § 40-47-11. Schmidt v. City of Minot, 2016 ND 175, 883 N.W.2d 909, 2016 N.D. LEXIS 175 (N.D. 2016).

Scope of Review.

In reviewing a decision of the city’s governing body, the trial court must be guided by the separation of power principles; judicial review of a nonjudicial governing body is limited to determining whether that body’s decision is arbitrary, capricious, or unreasonable. City of Fargo v. Ness, 529 N.W.2d 572, 1995 N.D. LEXIS 41 (N.D. 1995).

Subsection (2) affords an expanded review by certiorari, beyond the question of jurisdiction, to include a determination of whether there is evidence to support the decision of the city’s governing body; the district court committed reversible error by limiting its review in city zoning ordinance violation case to a determination of whether the city acted within its jurisdiction. The court was obligated to conduct a broader scope of review. City of Fargo v. Ness, 529 N.W.2d 572, 1995 N.D. LEXIS 41 (N.D. 1995).

When Writ Does Not Lie.

Certiorari does not lie to review the discretion of the board of adjustment in refusing an apartment house permit in a residence district. Livingston v. Peterson, 59 N.D. 104, 228 N.W. 816, 1930 N.D. LEXIS 128 (N.D. 1930).

40-47-12. Instituting action to restrain, correct, or abate violations.

If any building or structure is erected, constructed, reconstructed, altered, repaired, converted, or maintained, or if any building, structure, or land is used in violation of this chapter or of any ordinance or other regulation made under the authority conferred by this chapter, the proper local authorities of the city, in addition to other remedies, may institute any appropriate action or proceeding:

  1. To prevent such unlawful erection, construction, reconstruction, alteration, repair, conversion, maintenance, or use;
  2. To restrain, correct, or abate such violation;
  3. To prevent the occupancy of the building, structure, or land; or
  4. To prevent any illegal act, conduct, business, or use in or about such premises.

Source: S.L. 1923, ch. 175, § 8; C.L. 1913, 1925 Supp., § 3756a8; R.C. 1943, § 40-4712.

Notes to Decisions

Applicability.

District court erred in dismissing the residents' appeal of a city decision granting a bank's application for zoning variances under N.D.C.C. § 40-47-12 where the residents were not proper local authorities of the city and did not bring an action to correct a zoning violation, and thus, § 40-47-12 did not apply to the appeal. Schmidt v. City of Minot, 2016 ND 175, 883 N.W.2d 909, 2016 N.D. LEXIS 175 (N.D. 2016).

Availability of Alternative Remedies.

A city can choose to restrain, correct, or abate zoning violations by seeking injunctive relief, without demonstrating the unavailability of alternative remedies. City of Fargo v. Ness, 529 N.W.2d 572, 1995 N.D. LEXIS 41 (N.D. 1995).

Standing to Seek Enforcement of Zoning Ordinances.

City had authority to enact ordinance which conferred standing upon any “affected citizen or property owner” to seek the enforcement of the city’s zoning ordinances. Munch v. Mott, 311 N.W.2d 17, 1981 N.D. LEXIS 381 (N.D. 1981).

Collateral References.

Alteration, extension, reconstruction, or repair of nonconforming structure or structure devoted to nonconforming use as violation of zoning ordinance, 63 A.L.R.4th 275.

Laches as defense in suit by governmental entity to enjoin zoning violation, 73 A.L.R.4th 870.

40-47-13. Conflict between regulations adopted under this chapter and other laws, ordinances, or regulations.

If the regulations made under the authority of this chapter require a greater width or size of yards or courts, or require a lower height of building or a lesser number of stories, or require a greater percentage of lot to be left unoccupied, or impose other higher standards than are required in any other statute or local ordinance or regulation, the provisions of the regulations made under the authority of this chapter shall govern. If the provisions of any other statute or local ordinance or regulation require a greater width or size of yards or courts, or require a lower height of building or a lesser number of stories, or require a greater percentage of lot to be left unoccupied, or impose other higher standards than are required by the regulations made under the authority of this chapter, the provisions of such statute or local ordinance shall govern.

Source: S.L. 1923, ch. 175, § 9; C.L. 1913, 1925 Supp., § 3756a9; R.C. 1943, § 40-4713.

Notes to Decisions

Previously Granted Powers.

The enactment of this statute did not restrict powers previously granted to cities to adopt reasonable ordinances with respect to lot usage. Ujka v. Sturdevant, 65 N.W.2d 292, 1954 N.D. LEXIS 88 (N.D. 1954).

Collateral References.

Zoning regulation of intoxicating liquor as pre-empted by state law, 65 A.L.R.4th 555.

CHAPTER 40-48 Municipal Master Plans and Planning Commissions

40-48-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Street” includes streets, highways, avenues, boulevards, parkways, roads, lanes, walks, alleys, viaducts, subways, tunnels, bridges, public easements and rights of way, and other ways.
  2. “Subdivision” means the division of a tract or parcel of land into lots for the purpose, whether immediate or future, of sale or of building development, and any plat or plan which includes the creation of any part of one or more streets, public easements, or other rights of way, whether public or private, for access to or from such lots, and the creation of new or enlarged parks, playgrounds, plazas, or open spaces.

Source: S.L. 1929, ch. 177, § 12; R.C. 1943, § 40-4801.

Cross-References.

Industrial planning surveys, see ch. 40-57.2.

Collateral References.

Zoning: residential off-street parking requirements, 71 A.L.R.4th 529.

Law Reviews.

Zoning and the Amortization of Nonconforming Uses, 54 N.D. L. Rev. 231 (1977).

40-48-02. Official master plan may be established — Filing — Effect — Purpose.

Any municipality, by an ordinance of its governing body, may establish an official master plan of the municipality. Such ordinance shall make it the duty of some appropriate official or employee of the municipality to file for record immediately, with the recorder of the county in which the area covered by the plan is situated, a certificate showing that the municipality has established an official master plan. Such plan shall be final and conclusive with respect to the location and width of streets, ways, plazas, open spaces, and public easements, and the location of parks and playgrounds, and the establishment of public rights in lands shown thereon. The official master plan is declared to be established to conserve and promote the public health, safety, and general welfare of the municipality.

Source: S.L. 1929, ch. 177, § 1; R.C. 1943, § 40-4802; S.L. 2001, ch. 120, § 1.

40-48-03. Planning commission — Creation — Members — Ex officio members.

The governing body of any city may create, by ordinance, a planning commission to consist of not more than ten members to be appointed by the executive officer of the city with the approval of its governing body. In addition to the members appointed by the city, the planning commission shall include at least one person residing outside of the corporate limits of a city having a population of less than five thousand, two persons residing outside the corporate limits of a city having a population of five thousand or more, but less than twenty-five thousand, or three persons residing outside the corporate limits of a city having a population of twenty-five thousand or more if zoning authority is exercised pursuant to section 40-47-01.1. Such persons shall be appointed by the board or boards of county commissioners of the county or counties within which such subdivision authority is to be exercised and shall reside within the territorial limits of the subdivision regulation authority exercised by the city, if such persons are available and will serve on the planning commission. Of the members of the commission appointed by a board or boards of county commissioners pursuant to this section, the first member appointed shall hold office for five years, the second member appointed shall hold office for three years, and the third member appointed shall hold office for one year. Thereafter, the members shall be appointed for terms of five years. The executive officer, the engineer, and the attorney of the city shall be ex officio members of the commission.

Source: S.L. 1929, ch. 177, § 2; R.C. 1943, § 40-4803; S.L. 1969, ch. 380, § 1; 1975, ch. 385, § 4; 2007, ch. 351, § 3.

Effective Date.

The 2007 amendment of this section by section 3 of chapter 351, S.L. 2007 is effective through July 31, 2009, and after that date is ineffective, pursuant to section 6 of chapter 351, S.L. 2007.

40-48-04. Terms of members of commission — Vacancies.

The present members of the commission shall hold office for the balance of their tenure. Of the members of the commission newly appointed, pursuant to this chapter, the first member appointed, if one be appointed, shall hold office for the term of one year, if a second member is appointed that member shall hold office for the term of two years, if a third member is appointed that member shall hold office for the term of three years, if a fourth member is appointed that member shall hold office for the term of four years, and if a fifth member is appointed that member shall hold office for the term of five years from and after that member’s appointment. Thereafter, the members shall be appointed for terms of five years. The terms of the ex officio members of the commission shall correspond to their respective official tenures. If a vacancy occurs otherwise than by expiration of a term, it shall be filled by appointment for the unexpired portion of the term.

Source: S.L. 1929, ch. 177, § 2; R.C. 1943, § 40-4804; S.L. 1969, ch. 380, § 2.

40-48-05. Traveling expenses.

When duly authorized by the commission, members thereof may attend planning conferences or meetings of planning institutes or hearings upon pending legislation, and the commission may pay the reasonable traveling expenses incident to such attendance pursuant to a resolution spread upon its minutes.

Source: S.L. 1929, ch. 177, § 2; R.C. 1943, § 40-4805; S.L. 1979, ch. 449, § 1.

40-48-06. President of commission — Meetings — Record to be kept — Appointment officers and employees — Power to contract.

The planning commission shall elect its president for a term of one year from among the appointed members. The commission shall hold at least one regular meeting in each month. It shall adopt rules for the transaction of business and shall keep a record of its resolutions, transactions, findings, and determinations, and such record shall be a public record. The commission may appoint such officers and employees as it may deem necessary for its work, and the appointment, promotion, demotion, and removal of such officers and employees shall be subject to the same provisions of law as govern other corresponding civil employees. The commission may contract with architects, city planners, engineers, and other consultants for such services as it may require.

Source: S.L. 1929, ch. 177, § 3; R.C. 1943, § 40-4806.

40-48-07. Limitations on expenditures of commission — Tax levy authorized.

The expenditures of the planning commission, exclusive of gifts, must be within the funding provided from revenues derived from the general fund levy authority of the governing body of the municipality. The governing body shall provide the funds, equipment, and accommodations it deems necessary for the commission’s work.

Source: S.L. 1929, ch. 177, § 3; R.C. 1943, § 40-4807; S.L. 1959, ch. 312, § 1; 1983, ch. 593, § 26; 1983, ch. 606, § 48; 2015, ch. 439, § 52, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 52 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-48-08. Master plan — Adoption — Contents — Part of plan may be published — Amending.

The planning commission shall make and adopt a master plan for the physical development of the municipality and of any land outside its boundaries which, in the commission’s judgment, bears a relation to the planning of the municipality. Such plan, with the accompanying maps, plats, charts, and descriptive matter, shall show the commission’s recommendations for the development of the territory, including:

  1. The general locations, character, and extent of streets, waterways, waterfronts, playgrounds, plazas, squares, and open spaces, parks, aviation fields, and other public ways and grounds;
  2. The general location of public buildings and other public property;
  3. The general location and extent of public utilities and terminals whether publicly or privately owned or operated;
  4. The removal, relocation, widening, narrowing, vacation, abandonment, change of use, or extension of any of the foregoing ways, grounds, open spaces, buildings, property, terminals, or utilities; and
  5. Other matters authorized by law.

The commission, from time to time, may adopt and publish a part of the plan covering one or more major sections or divisions of the territory under its jurisdiction or one or more of the subjects set out in this section or other subjects. The commission, from time to time, may amend, extend, or add to the master plan.

Source: S.L. 1929, ch. 177, § 4; R.C. 1943, § 40-4808.

Effective Date.

The repeal of this section by section 46 of chapter 2214, S.L. 2007, became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 2214, S.L. 2007.

40-48-09. Surveys and studies made before making plan — Purpose of plan.

In the preparation of the master plan, the planning commission shall make careful and comprehensive surveys and studies of present conditions and future growth of the municipality with due regard to its relation to neighboring territory. The plan shall be made with the general purpose of guiding and accomplishing a coordinated, adjusted, and harmonious development of the municipality and its environs, which, in accordance with present and future needs, best will promote the amenities of life, health, safety, morals, order, convenience, prosperity, and general welfare as well as efficiency and economy in the process of development, including adequate provision for light and air, distribution of population, good civic design and arrangement, wise and efficient expenditure of public funds, the adequate provision of public utilities and other public requirements, the improvement and control of architecture, and the general embellishment of the area under its jurisdiction.

Source: S.L. 1929, ch. 177, § 5; R.C. 1943, § 40-4809.

40-48-10. Hearing on plan before adoption by commission — Resolution to adopt — Action recorded on plan and maps — Governing body to receive copy of plan.

Before adopting the master plan or any part of it or any substantial amendment thereof, the planning commission shall hold at least one public hearing thereon. Notice of the time of such hearing shall be given by one publication in the official municipal newspaper. The adoption of the plan, or of a part thereof or amendment thereto, shall be by a resolution of the commission carried by the affirmative votes of not less than two-thirds of the members thereof. The resolution shall refer expressly to the maps and descriptive matter intended by the commission to form the whole or part of the plan or amendment. The action taken by the commission shall be recorded on the map, plan, and descriptive matter by the identifying signature of the secretary of the commission. An attested copy of the master plan shall be certified to the governing body of the municipality.

Source: S.L. 1929, ch. 177, § 6; R.C. 1943, § 40-4810; S.L. 1969, ch. 380, § 3.

Cross-References.

Official newspaper of municipality, see § 40-01-09.

40-48-11. Hearing on plan by governing body — Notice — Changes in plan — Notice to planning commission — Disapproval of changes.

Upon receipt of an attested copy of the master plan or of any part thereof after the adoption thereof by the planning commission, the governing body shall hold a public hearing thereon. At least ten days’ notice of such hearing shall be published in the official municipal newspaper. No change or addition to the master plan or any part of it as adopted by the planning commission shall be made by the governing body until the proposed change or addition shall have been referred to the planning commission for report thereon and an attested copy of the commission’s report is filed with the governing body. The failure of the planning commission to report within thirty days after the date of the request for the report by the governing body shall be deemed to be an approval by the commission of the additions or changes. If the additions or changes are disapproved by the commission, a two-thirds vote of the entire governing body shall be necessary to pass any ordinance overruling such disapproval.

Source: S.L. 1929, ch. 177, § 7; R.C. 1943, § 40-4811.

40-48-12. Permission to construct when plan adopted — Disapproval of permission — Overruling — Failure to act on permission.

When the governing body shall have adopted the master plan of the municipality or any major section or district thereof, no street, square, park, or other public way, ground, or open space, or public building or structure shall be constructed or authorized in the area shown on the master plan until the location, character, and extent thereof shall have been submitted to and approved by the planning commission. In case of disapproval thereof, the commission shall communicate its reasons to the governing body, which may overrule such disapproval by a recorded vote of not less than two-thirds of its entire membership. If the public way, ground, space, building, or structure is one the construction, financing, or authorization of which does not fall within the province of the governing body, the submission to the planning commission shall be by the board, commission, or body having such jurisdiction, and the planning commission’s disapproval may be overruled by said board, commission, or body by a vote of not less than two-thirds of its membership. The failure of the commission to act upon such submission within sixty days from and after the date of the official submission to the commission shall be deemed to be an approval.

Source: S.L. 1929, ch. 177, § 8; R.C. 1943, § 40-4812.

40-48-13. Miscellaneous duties of planning commission.

The planning commission shall:

  1. Recommend to the appropriate public officials, from time to time, programs for specific improvements and for the financing thereof.
  2. Consult and advise with public officials and agencies, public utility companies, civic, educational, professional, and other organizations, and with citizens relative to the carrying out of the plan.

Source: S.L. 1929, ch. 177, § 9; R.C. 1943, § 40-4813.

40-48-14. Miscellaneous powers of planning commission.

The planning commission may:

  1. Promote public interest in and understanding of the master plan, and for that purpose, it may publish and distribute copies of the plan or of any part thereof or of any report, and may employ such other means of publicity and education as it may determine.
  2. Accept and use gifts for the exercise of its functions.
  3. By its members, officers, and employees in the performance of their functions, enter upon any land and make examinations and surveys thereof and place and maintain necessary monuments or marks thereon.
  4. Exercise such other powers as may be necessary to enable it to fulfill its functions and carry out the provisions of this chapter.

Source: S.L. 1929, ch. 177, § 9; R.C. 1943, § 40-4814.

40-48-15. Public officials to cooperate with planning commission.

All public officials, upon request, shall furnish to the planning commission, within a reasonable time after such request, such information as the commission may require in connection with its work.

Source: S.L. 1929, ch. 177, § 9; R.C. 1943, § 40-4815.

40-48-16. Governing body may add to or change master plan — Notice.

Whenever the governing body of the municipality may deem it for the public interest, it may change or add to the official master plan by laying out new streets, improvements, or conveniences mentioned in this chapter or by widening, enlarging, closing, or abandoning existing streets, improvements, or conveniences. At least ten days’ notice of a public hearing on any proposed action with reference to such change in the official master plan shall be published in the official newspaper of the municipality. Before any such addition or change is made, the matter shall be referred to the planning commission for report thereon as provided in section 40-48-11. Such additions and changes, when adopted by an ordinance of the governing body, shall become a part of the official master plan of the municipality and shall be deemed to be final and conclusive with respect to all matters shown thereon. The layout, widening, enlarging, closing, or abandoning of streets, plazas, open spaces, and parks or playgrounds by the municipality under provisions of the laws of this state other than those contained in this chapter shall be deemed to be a change or addition to the official master plan and shall be subject to all the provisions of this chapter.

Source: S.L. 1929, ch. 177, § 10; R.C. 1943, § 40-4816.

40-48-17. Submission of matters to planning commission before governing body takes action thereon.

The governing body creating the planning commission, by a general or special rule, may provide for the reference of any other matter or class of matters to the commission before final action is taken thereon by the governing body, or by the municipal officer having the final authority thereon, with the provision that final action shall not be taken thereon until the planning commission has submitted its report or has had a reasonable time, as fixed in said rule, to do so. The planning commission may make such investigations, maps, reports, and recommendations in connection therewith relating to the planning and development of the municipality as to it seems desirable, but the total expenditures of the board in such matters shall not exceed the funds available therefor.

Source: S.L. 1929, ch. 177, § 11; R.C. 1943, § 40-4817.

40-48-18. Extraterritorial subdivision regulation — Mediation — Determination by administrative law judge.

  1. A city may, by ordinance, extend its regulation of subdivisions beyond its corporate limits to the same extent as a city is authorized to extend its zoning authority under section 40-47-01.1.
  2. If two or more cities have boundaries at a distance where there is an overlap of extraterritorial subdivision regulation authority under this section, the governing bodies of the cities may enter into an agreement regarding the extraterritorial subdivision regulation authority of each city. The agreement must be for a specific term and is binding upon the cities unless the governing bodies of the cities agree to amend or rescind the agreement or unless determined otherwise by an administrative law judge in accordance with this chapter. If a dispute arises concerning the extraterritorial subdivision regulation authority of a city, and the governing bodies of the cities involved fail to resolve the dispute, the dispute must be submitted to a committee for mediation. The committee must be comprised of one member appointed by the governor, one member of the governing body of each city, and one member of the planning commission of each city who resides outside the corporate city limits. The governor’s appointee shall arrange and preside over the meeting and act as mediator at the meeting. The meeting may be continued until the dispute has been resolved or until the mediator determines that continued mediation is no longer worthwhile.
  3. If the mediation committee is unable to resolve the dispute to the satisfaction of the governing bodies of all the cities involved, the governing body of any of the cities may petition the office of administrative hearings to appoint an administrative law judge to determine the extraterritorial subdivision regulation authority of the cities in the disputed area. A hearing may not be held until after at least two weeks’ written notice has been given to the governing bodies of the cities involved in the dispute. At the hearing, the governor’s appointee who mediated the meetings under subsection 2 shall provide information to the administrative law judge on the dispute between the cities involved and any proposed resolutions or recommendations made by a majority of the committee members. Any resident of, or person owning property in, a city involved in the dispute or the unincorporated territory that is the subject of the proposed subdivision regulation, a representative of such a resident or property owner, and any representative of a city involved, may appear at the hearing and present evidence on any matter to be determined by the administrative law judge. A decision by the administrative law judge is binding upon all the cities involved in the dispute and remains effective until the governing bodies of the cities agree to a change in the subdivision regulation authority of the cities. The governing body of a city may request a review of a decision of an administrative law judge due to changed circumstances at any time ten years after the decision has become final. An administrative law judge shall consider the following factors in making a decision under this subsection:
    1. The proportional extraterritorial subdivision regulation authority of the cities involved in the dispute;
    2. The proximity of the land in dispute to the corporate limits of each city involved;
    3. The proximity of the land in dispute to developed property in the cities involved;
    4. Whether any of the cities has exercised extraterritorial subdivision regulation authority over the disputed land;
    5. Whether natural boundaries such as rivers, lakes, highways, or other physical characteristics affecting the land are present;
    6. The growth pattern of the cities involved in the dispute; and
    7. Any other factor determined to be relevant by the administrative law judge.

Source: S.L. 1929, ch. 177, § 13; R.C. 1943, § 40-4818; S.L. 1975, ch. 385, § 5; 1997, ch. 354, § 2.

Cross-References.

Zoning of territory adjacent to cities, see §§ 11-35-02, 40-47-01.1.

Collateral References.

Validity of statutory classification based on population — zoning, building, and land use statutes, 98 A.L.R.3d 679.

40-48-18.1. Agreements to not oppose annexation void.

The planning commission or governing body may not require as a condition of approval of a request for approval of a plat the execution of an agreement by the owner of the property requesting the approval stating that the owner will not oppose the annexation of the property by the municipality. This section does not apply to property located within one quarter mile [.40 kilometer] of the municipality’s corporate limits or to an agreement that contains a provision whereby the municipality agrees to provide a municipal service or services before the annexation. Any agreement entered in violation of this section is void.

Source: S.L. 1997, ch. 355, § 2.

40-48-19. Major street plan adopted by commission — Filing and approval of plat.

Whenever a planning commission shall have adopted a major street plan of the territory within its subdivision jurisdiction, or of a part thereof, and shall have filed a certified copy of such plan in the office of the recorder of the county in which such territory or part is located, no plat of a subdivision of land within such territory or part thereof shall be filed or recorded until it shall have been approved by such planning commission and such approval shall have been entered in writing on the plat by the chairman or secretary of the commission.

Source: S.L. 1929, ch. 177, § 14; R.C. 1943, § 40-4819; S.L. 2001, ch. 120, § 1.

40-48-20. Regulations governing subdivision of land — Contents — Hearing — Publication — Filing regulations.

Before exercising the powers referred to in this chapter, the planning commission shall adopt general regulations governing the subdivision of land within its jurisdiction to provide:

  1. For the proper arrangement of streets in relation to other existing and planned streets and to the master plan; and
  2. For adequate and convenient open spaces for traffic, utilities, access of firefighting apparatus, recreation, light, and air, for the avoidance of congestion of population, and for easements for building setback lines or for public utility lines.

Such regulations may include requirements as to the minimum width and area of building lots, the extent to which streets and other public ways shall be graded and improved, and to which water and sewer and other utility mains or other facilities shall be installed as a condition precedent to the approval of the plat. Before the adoption of such regulations, a public hearing shall be held thereon. All such regulations shall be published as provided by law, and a copy thereof shall be certified by the governing body of the municipality and filed for record by the commission with the recorders of the counties in which the commission and territory are located.

Source: S.L. 1929, ch. 177, § 15; R.C. 1943, § 40-4820; S.L. 2001, ch. 120, § 1.

40-48-21. Approval of plats by commission — Hearings — Notice — Effect.

Within thirty days after the submission of a plat, the planning commission shall approve or disapprove the plat. If the plat is not approved or disapproved within that time, the plat is deemed to have been approved, and a certificate to that effect must be issued by the commission on demand. The applicant, however, may waive the requirement that the commission act within thirty days and may consent to an extension of the period. The commission shall state the grounds upon which any plat is approved or disapproved, and written findings upon which the decision is based must be included within the records of the commission. Any plat submitted to the commission must contain the name and address of an individual to whom notice of a hearing must be sent. No action may be taken by the commission upon any plat until the commission has afforded a hearing thereon. At least five days before the date fixed for the hearing, a notice of the time and place of the hearing must be sent by registered mail to the address shown on the plat. Public notice of all hearings also must be given. Every plat approved by the commission may be adopted by the commission as an amendment of or addition to the master plan without further hearing.

Source: S.L. 1929, ch. 177, § 16; R.C. 1943, § 40-4821; 2007, ch. 107, § 4.

Effective Date.

The 2007 amendment of this section by section 4 of chapter 107, S.L. 2007 became effective August 1, 2007.

Notes to Decisions

Submission of Plat.

Where proposed plat, which did not contain name and address of person to whom notice of hearing could be sent, was filed with city auditor, who had no connection with the planning commission, it did not constitute submission of plat to commission for approval as required by this section although the governing body of the city had discussed the plat and referred it to the commission for its study and return. Schonberg v. Fargo Planning Comm'n, 110 N.W.2d 830, 1961 N.D. LEXIS 94 (N.D. 1961).

40-48-22. Items considered in approving plat — Notations made on plat — Deed delivered to municipality or county.

Before the approval of a plat, the planning commission and the governing body shall take into consideration the prospective character of the development of the area included in the plat and of the surrounding territory. The owner of the land or the owner’s agent who files the plat may add as a part of the plat a notation to the effect that no offer or dedication of the streets, parks, or playgrounds shown thereon, or of any of them, is made to the public. The owner or the owner’s agent may show by a dotted line on the plat the dedication of an easement for building setback lines or for use in establishing public utility lines. At the time of the filing of the plat, the planning commission or the governing body may require that a deed to the fee for streets or other areas offered for dedication to the public on said plat be delivered to the municipality or county, as the case may be, where the same are located.

Source: S.L. 1929, ch. 177, § 17; R.C. 1943, § 40-4822.

40-48-23. Penalty for transfer of lots in unapproved subdivision — Injunction — Civil action.

Any owner, or the agent of any owner, of land located within the territory of a subdivision that is subject to the approval of a planning commission or governing body of a municipality who transfers, sells, agrees to sell, or negotiates to sell any land by reference to or exhibition of a plat of a subdivision, or by any other use thereof, before such plat has been approved by the planning commission and governing body and recorded as approved in the office of the appropriate recorder, shall forfeit and pay a penalty of one hundred dollars for each lot or parcel transferred or sold or agreed or negotiated to be sold. The description of such lot or parcel by metes and bounds in the instrument of transfer or other document used in the process of selling or transferring shall not exempt the transaction from such penalties or from the remedies provided in this section. The municipality may enjoin such transfer, sale, or agreement by an action for injunction, or it may recover the penalty by a civil action.

Source: S.L. 1929, ch. 177, § 18; R.C. 1943, § 40-4823; S.L. 2001, ch. 120, § 1.

40-48-24. Improvements in unapproved streets.

The municipality shall not accept, lay out, open, improve, grade, pave, or curb any street, or lay or authorize the laying of sewers or connections in any street or right of way within any portion of territory for which the planning commission shall have adopted a major traffic street plan unless such street:

  1. Shall have been accepted or opened as, or otherwise shall have received the legal status of, a public street prior to the adoption of such plan; or
  2. Corresponds with a street shown on the official master plan or with a street on a subdivision plat approved by the planning commission or with a street on a street map made and officially adopted by the commission.

The governing body, however, may accept any street not shown or not corresponding with a street on the official master plan or on an approved subdivision plat or an approved street map if the ordinance or other measure accepting such street first is submitted to the planning commission for its approval, and, if approved by the commission, it is enacted or passed by not less than a majority of the entire membership of the governing body, or, if disapproved by the commission, it is enacted or passed by not less than two-thirds of the entire membership of the governing body. A street approved by the planning commission upon submission by the governing body or a street accepted by a two-thirds vote of the governing body after disapproval by the planning commission shall have the status of an approved street as fully as though it originally had been shown on the official master plan or on a subdivision plat approved by the planning commission or originally had been mapped by the commission.

Source: S.L. 1929, ch. 177, § 20; R.C. 1943, § 40-4824.

40-48-25. Erection of buildings on unapproved streets.

After the planning commission shall have adopted a major street plan of the territory within its subdivision jurisdiction, or of any part thereof, no building shall be erected on any lot within such territory or part, nor shall a building permit be issued therefor, unless the street giving access to the lot upon which it is proposed to place such building shall have been accepted or opened as is provided in section 40-48-24. Any building erected in violation of this section shall be deemed an unlawful structure, and the building inspector or other appropriate official may cause it to be vacated and to be removed.

Source: S.L. 1929, ch. 177, § 21; R.C. 1943, § 40-4825.

40-48-26. Exclusive jurisdiction of planning commission — Exception.

After the adoption of a major traffic street plan by any planning commission, the jurisdiction of the planning commission over plats shall be exclusive within the territory under its jurisdiction, except as otherwise provided in section 40-48-18.

Source: S.L. 1929, ch. 177, § 22; R.C. 1943, § 40-4826.

40-48-27. Interpretation of harmonious and conflicting statutes.

All statutory control over plats or subdivisions of land granted by other statutes, insofar as such control is in harmony with the provisions of this chapter, shall be deemed transferred to the planning commission, and insofar as such control is inconsistent with the provisions of this chapter, the provisions of this chapter shall govern in a municipality which has established a planning commission.

Source: S.L. 1929, ch. 177, § 22; R.C. 1943, § 40-4827.

40-48-28. Maps showing reservations and future acquisitions for streets — Hearing — Notice — Approval by governing body — Modifications — Filing.

After it has adopted any part of a master plan for any part of the territory within its planning jurisdiction, the planning commission may make or cause to be made, from time to time, surveys for the exact location of the lines of a street or streets shown in any portion of such master plan and may make a map of the land thus surveyed showing precisely the land which it recommends to be reserved for future acquisition for public streets. Before adopting any such map, the planning commission shall hold a public hearing thereon. A notice of the time and place of the hearing, with a general description of the district or area covered by the map, shall be given not less than ten days previous to the time fixed for the hearing by one publication in the official newspaper of the municipality if the district or area affected is within the municipality, and in a newspaper of general circulation in the county if the district or area affected is outside of the municipality. After such hearing, the commission may transmit the map as originally made, or as modified by it, to the governing body together with the commission’s estimate of the time or times within which the lands shown on the map as street locations should be acquired by the municipality. The governing body, by resolution, may approve and adopt or may reject such map, or it may modify the map with the approval of the planning commission, or in the event of the planning commission’s disapproval, the governing body by a favorable vote of not less than two-thirds of its entire membership, may modify such map and adopt the modified map. In the resolution adopting the map, the governing body shall fix the period of time for which the street locations shown upon the map shall be deemed reserved for future taking or acquisition. The city auditor shall file for record an attested copy of the map with the recorder of each county in which the mapped land is located and shall retain one copy for examination by the public.

Source: S.L. 1929, ch. 177, § 23; R.C. 1943, § 40-4828; S.L. 1967, ch. 323, § 212; 2001, ch. 120, § 1.

40-48-29. Effect of approval and adoption of map.

The approval and adoption of a map as provided in section 40-48-28 shall not be deemed the opening or establishment of any street or the taking of any land for street purposes or for public use or as a public improvement, but shall operate solely as a reservation of the street location shown on the map for the period specified in the resolution for future taking or acquisition for public use.

Source: S.L. 1929, ch. 177, § 23; R.C. 1943, § 40-4829.

40-48-30. Commission may secure releases of claims for damages or compensation — Effect.

The commission, at any time, may negotiate for or secure from the owner or owners of any lands described in any map releases of claims for damages or compensation for the reservations shown in the resolution adopting such map or agreements indemnifying the municipality or county from such claims by others. Such releases or agreements shall be binding upon the owner or owners executing the same and upon their successors in title. The commission, however, shall not make awards or fix compensation.

Source: S.L. 1929, ch. 177, § 23; R.C. 1943, § 40-4830.

40-48-31. Modification of street lines — When allowed — Agreement — Approval of new map — Filing map — Abandoning reservation.

At any time after the filing of a map of the kind described in section 40-48-28 for record with the recorder and during the period specified for the reservation, the planning commission and the owner of any land containing a reserved street location may agree upon a modification of the location of the lines of the proposed street. Such agreement shall include a release by the owner of any claim for compensation or damages by reason of such modification. Thereupon, the commission may make a map corresponding to the modification and transmit the map to the governing body. If the modified map is approved by the governing body, the city auditor shall file for record an attested copy thereof with the recorder, and the modified map shall take the place of the original map. The governing body, by resolution, may abandon any reservation at any time. Any such abandonment shall be filed for record with the recorder.

Source: S.L. 1929, ch. 177, § 23; R.C. 1943, § 40-4831; S.L. 1967, ch. 323, § 213; 2001, ch. 120, § 1.

40-48-32. Resolution adopting street map — When effective — Notice — Contents — Protest.

The resolution of the governing body adopting any street map provided for in section 40-48-28 shall provide that it shall not become effective for forty days, and shall provide further that it shall not become effective until a notice of the adoption of such resolution has been published once each week for four successive weeks in the official newspaper of the city as provided by section 40-01-09. The resolution and the notice shall state a time within which the owners of property lying within or immediately adjoining the lines of the proposed future street opening or widening, or between any future street line and the street nearest the public highway may protest in writing against the adoption of the future street lines.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4832; S.L. 1977, ch. 375, § 8.

40-48-33. Examination of protests by engineer and attorney — Hearing — Notice.

Upon the receipt of any protests within the time fixed by the resolution and the notice, the governing body may cause the same to be examined by its engineer and by its attorney and shall set a time for the hearing of the same. Notice of the hearing shall be given to each protestant at that person’s address, which shall be stated in the protest.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4833.

40-48-34. Granting or denying protests — When resolution effective.

Upon the hearing of any protest, the governing body may grant or deny the same except that it shall not deny the written protests of the owners of a majority of the area of property lying within any proposed street to be opened or of a majority of the owners of the frontage of a street to be widened and upon which a future street line is established except by a four-fifths vote of such governing body. The governing body may grant or sustain protests as to the entire proposed future street line or lines or only as to a portion thereof. The governing body may deny the protest or protests as to any portion of such proposed future street line or lines concerning which a protest is not granted or sustained. Upon the denial of any such protest, the resolution shall become effective immediately. If no protests are filed, such resolution shall take final effect at midnight of the last day for filing protests.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4834.

40-48-35. Resolution and map recorded upon adoption.

Whenever any resolution adopting a street map shall have become final, the city auditor shall record in the office of the recorder of the appropriate county a notice referring to the resolution by number and other appropriate description, including the date of its adoption, and setting forth a description of the property contained within the proposed opening and widening lines or between the future street lines and the nearest public highway, together with a copy of the map showing any such line or lines.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4835; S.L. 1967, ch. 323, § 214; 2001, ch. 120, § 1.

40-48-36. Protest against resolution as a taking of property.

If any owner of property lying within any lines for the proposed opening and widening, or the opening and widening of any street, or between any future street line and the nearest public highway, shall claim that the adoption of any resolution or ordinance or the refusal to issue a building permit to the owner or the prohibition of building or construction by the owner shall constitute a taking of the owner’s property by the municipality, said owner, within three months after the recording in the office of the appropriate recorder of the notice provided in section 40-48-35, may file with the governing body a protest against the alleged taking of the owner’s property and a demand that the municipality adopting such resolution either vacate the same as to the property of such owner, or compensate the owner therefor, or commence the condemnation thereof within three months after the filing of the owner’s written protest and claim. If the municipality shall fail to vacate such resolution as to the property of the protesting owner, or to compensate the owner for the right to construct any building, fence, or other structure, or to commence proceedings for the condemnation thereof within three months after the receipt of such written protest and demand, such resolution shall be vacated automatically and annulled as to the property of such protesting owner.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4836; S.L. 2001, ch. 120, § 1.

40-48-37. Failure to file claim is waiver.

Any owner of property lying within any of the lines set forth or described as future street lines in any resolution adopted as provided for in this chapter who shall fail, within the time specified, to file a protest and claim shall be deemed conclusively to have waived any such claim, but that person shall not be deemed to have waived any title to the property within any such future street line or lines or any interest therein other than the right to erect or construct thereon any building, fence, or other structure.

Source: S.L. 1929, ch. 177, § 24; R.C. 1943, § 40-4837.

40-48-38. Penalty for violations.

A person who violates any of the provisions of this chapter shall be guilty of a class A misdemeanor.

Source: S.L. 1929, ch. 177, § 27; R.C. 1943, § 40-4838; S.L. 1975, ch. 106, § 456.

Cross-References.

Penalties for class A misdemeanor, see § 12.1-32-01.

CHAPTER 40-49 Parks and Park Districts

40-49-01. Municipalities may acquire real estate for parks or public grounds by gift, devise, or conveyance — Extension of police power.

A municipality may receive by gift, devise, or conveyance real estate within its corporate limits, or within five miles [8.05 kilometers] thereof, for use as parks or public grounds. Such real estate shall be vested in the municipality upon the conditions imposed by the donors or conveyor, and upon the acceptance of the gift, devise, or conveyance by the executive officer and governing body of the municipality, the jurisdiction of the governing body shall be extended over such real estate. The governing body may enact bylaws, rules, and ordinances for the protection and preservation of any real estate acquired as provided in this section and may provide suitable penalties for the violation of any such bylaws, rules, or ordinances. The police powers of the municipality shall be extended at once over any real estate acquired in the manner provided in this section.

Source: S.L. 1890, ch. 99, § 1; R.C. 1895, § 2503; R.C. 1899, § 2503; R.C. 1905, § 3016; C.L. 1913, § 4054; R.C. 1943, § 40-4901; 2019, ch. 97, § 2, effective March 20, 2019.

Cross-References.

County parks and recreational areas, see ch. 11-28.

Notes to Decisions

Dedication.

An intention to dedicate property to a public use must be clearly established but may be shown by deed, words, or acts. Cole v. Minnesota Loan & Trust Co., 17 N.D. 409, 117 N.W. 354, 1908 N.D. LEXIS 68 (N.D. 1908).

Statutes prescribing methods of dedicating real property to public uses are not exclusive of the common-law method of dedication nor of implied dedication by estoppel in pais. Cole v. Minnesota Loan & Trust Co., 17 N.D. 409, 117 N.W. 354, 1908 N.D. LEXIS 68 (N.D. 1908).

Collateral References.

Power of municipal corporation to exchange its real property used for a park or public square, 60 A.L.R.2d 220, 239.

Relative rights as between municipality and abutting landowners to minerals, oil, and gas underlying parks, 62 A.L.R.2d 1311.

Prohibiting or regulating removal or exploitation of oil and gas, minerals, soil, or other natural products within municipal limits, 10 A.L.R.3d 1226.

Authorization, prohibition, or regulation by municipality of the sale of merchandise on streets or highways, or their use for such purpose, 14 A.L.R.3d 896.

Construction of highway through park as violation of use to which park property may be devoted, 60 A.L.R.3d 581.

Baseball player’s right to recover for baseball-related personal injury from nonplayer, 55 A.L.R.4th 664.

State’s liability for personal injuries from criminal attack in state park, 59 A.L.R.4th 1236.

40-49-02. Cities may take advantage of chapter — Vote required — How taken.

Any incorporated city by a two-thirds vote of its governing body, at a regular meeting of such governing body, may take advantage of the provisions of this chapter. The vote of the governing body on such question shall be taken by yeas and nays.

Source: S.L. 1905, ch. 143, § 1; R.C. 1905, § 3017; S.L. 1907, ch. 179, § 1; 1913, ch. 290, § 1; C.L. 1913, §§ 4055, 4064; R.C. 1943, § 40-4902; S.L. 1967, ch. 323, § 215.

Notes to Decisions

Constitutionality.

The provision empowering a city council to determine by a vote whether the city will avail itself of the provisions of the law is not unconstitutional as a delegation to the council of legislative power. Vallelly v. Board of Park Comm'rs, 16 N.D. 25, 111 N.W. 615, 1907 N.D. LEXIS 16 (N.D. 1907).

40-49-03. Ordinance required to create park districts — Territory embraced to be park district.

Any municipality desiring to take advantage of this chapter shall do so by an ordinance regularly adopted expressing such intent or desire. The territory embraced in the municipality or within any park which may be acquired under the provisions of this chapter shall be a park district of the state of North Dakota.

Source: S.L. 1905, ch. 143, § 2; R.C. 1905, § 3018; S.L. 1907, ch. 179, § 2; 1913, ch. 290, § 2; C.L. 1913, §§ 4056, 4065; R.C. 1943, § 40-4903.

40-49-04. Designation of park district — General powers — Park defined.

A park district shall be known as “park district of the city of _____________________________________________________________________ ” The park district shall have a seal and perpetual succession, and may:

  1. Sue and be sued.
  2. Contract and be contracted with.
  3. Acquire by purchase, gift, devise, or otherwise, and hold, own, possess, and maintain real and personal property in trust for use as parks, boulevards, and ways.
  4. Exercise all the powers designated in this chapter.

“Park”, as used in this chapter, and in other statutes relating to park districts, unless from the context a contrary intent plainly appears, includes public grounds used or acquired for use as airfields, parade grounds, public recreation areas, playgrounds and athletic fields, memorial or cemetery grounds, and sites or areas devoted to use and accommodation of the public as distinguished from use for purposes of municipal administration.

Source: S.L. 1905, ch. 143, § 3; R.C. 1905, § 3019; S.L. 1907, ch. 179, § 3; 1913, ch. 290, § 3; C.L. 1913, §§ 4057, 4066; R.C. 1943, § 40-4904; S.L. 1957, ch. 291, § 1; 1957 Supp., § 40-4904; S.L. 1967, ch. 323, § 216.

Notes to Decisions

Authority of Commissioners.

The board of park commissioners has the sole and exclusive authority to pave streets bordering upon and adjacent to a park, and to levy special assessments for the resultant benefit. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Governmental Immunity Abolished.

The doctrine of governmental immunity from tort liability committed in the execution of activities is abolished, and governmental bodies, other than the state government, are subject to suit for damages by individuals injured by negligent or wrongful acts or omissions of their agents and employees, whether engaged in a proprietary or governmental function. Kitto v. Minot Park Dist., 224 N.W.2d 795, 1974 N.D. LEXIS 133 (N.D. 1974).

Protection of Park Property.

Where city sought to close a street and create a special tax assessment district, which would curtail the use of park property and place a harmful burden on remaining access streets, the park district had the power to seek a declaratory judgment that the resolution vacating the street was void for want of publication. Park Dist. v. Fargo, 129 N.W.2d 828, 1964 N.D. LEXIS 121 (N.D. 1964).

Purpose of Statute.

This statute contemplates redistribution of governmental authority between the park district and the municipality affected. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

40-49-05. Board of park commissioners in city — Terms.

  1. The powers of a park district in a city must be exercised by a board of park commissioners consisting of five or three members, as determined by the governing body of the city in creating the park district or pursuant to sections 40-49-07.1 and 40-49-07.2. Except as provided in subsection 2, each commissioner shall hold office for a term of four years and until a successor is elected and qualified. The term of office of a commissioner begins two weeks after the regular biennial city election at which the commissioner is elected.
  2. Members of a newly created five-member board shall hold office as follows:
    1. Three members until two weeks after the next regular biennial city election.
    2. Two members until two years from the time mentioned in subdivision a.
  3. Members of boards of park commissioners which existed before July 1, 1987, shall hold office on the staggered basis in effect on June 30, 1986.
  4. Members of a newly created three-member board shall hold office as follows:
    1. Two members until two weeks after the next regular biennial city election.
    2. One member until two years after the next regular biennial city election.

Source: S.L. 1905, ch. 143, § 4; R.C. 1905, § 3020; S.L. 1907, ch. 179, § 4; C.L. 1913, § 4058; S.L. 1929, ch. 180, § 1; 1935, ch. 204, § 1; R.C. 1943, § 40-4905; S.L. 1977, ch. 389, § 1; 1987, ch. 498, § 1; 1993, ch. 401, § 46.

40-49-06. Board of park commissioners in villages — Term — Term on first board. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-49-07. Election and qualification of members of board of park commissioners.

The members of the board of park commissioners shall possess the qualifications of electors of the city and must be elected by the qualified electors of the park district. The members of the first board may be elected at any regular city election or at a special election called for that purpose by the governing body of the city. Thereafter, members of the board must be elected at the regular city elections. Such members shall qualify within two weeks after their election by taking and filing with the city auditor the oath prescribed for civil officers. The board of park commissioners may enter into an agreement with the governing body of the city concerning sharing of election personnel, printing of election materials, and apportioning of election expenses.

Source: S.L. 1905, ch. 143, § 4; R.C. 1905, § 3020; S.L. 1907, ch. 179, § 4; 1913, ch. 290, § 4; C.L. 1913, §§ 4058, 4067; S.L. 1929, ch. 180, § 1; 1935, ch. 204, § 1; R.C. 1943, § 40-4907; S.L. 1967, ch. 323, § 217; 1987, ch. 498, § 2.

Cross-References.

Oath of civil officers, see § 44-01-05.

40-49-07.1. Change in number of park commissioners — Election.

  1. The number of park commissioners may be increased from three to five, or decreased from five to three, pursuant to this section.
  2. The process for increasing or decreasing the number of park commissioners may be initiated:
    1. By resolution approved by a majority vote of the board of park commissioners and submitted to the governing body of the city; or
    2. By a petition signed by ten percent or more of the total number of qualified electors of the city park district voting for governor at the most recent gubernatorial election and submitted to the governing body of the city.
  3. The governing body of the city shall submit the question of increasing or decreasing the number of park commissioners to the electors of the park district at any regular city election or primary or general election as specified in the resolution or petition submitted pursuant to subsection 2. The question requires an affirmative vote of a majority of those voting on the question for passage.
  4. If an increase in the number of park commissioners is approved by the electors, the two additional park commissioners must be elected at the next regular city election or as specified in the resolution or petition pursuant to subsection 2. One of the additional commissioners shall hold office for a term of four years, and the other commissioner for a term of two years and until a successor is elected and qualified, unless other terms are specified in the resolution or petition pursuant to subsection 2.
  5. If a decrease in the number of park commissioners is approved by the electors, the existing board members shall continue in office until the time when the terms of office of two members of the board expire simultaneously. At that time, those two offices are abolished. A different procedure for abolition of the two offices may be specified in the resolution or petition pursuant to subsection 2.

Source: S.L. 1993, ch. 401, § 47.

40-49-07.2. Dissolution of city park district — Election.

  1. A city park district may be dissolved pursuant to a plan adopted pursuant to this section. A proposal for dissolving a city park district may be initiated:
    1. By resolution incorporating a dissolution plan, approved by a majority vote of the board of park commissioners and submitted to the governing body of the city; or
    2. By a petition incorporating a dissolution plan, signed by twenty-five percent or more of the total number of qualified electors of the city park district voting at the last regular city election and submitted to the governing body of the city.
  2. The governing body of the city shall submit the question of dissolution to the electors of the park district at any regular city election or primary or general election as specified in the resolution or petition submitted pursuant to subsection 1. The plan incorporated in the resolution or petition is effective and becomes operative according to its terms if a majority of the qualified electors voting on the question approves the plan.
  3. A plan for dissolving a city park district may specify:
    1. The disposition and maintenance of land and other property acquired by the board of park commissioners of the dissolved park district;
    2. The manner for payment of any current indebtedness, evidences of indebtedness in anticipation of user fee revenues, bonded indebtedness, and other obligations of the dissolved park district;
    3. The disposition of any outstanding special assessments or other anticipated revenues;
    4. The transition in implementing the plan, including elements that consider the reasonable expectations of current officeholders and personnel such as delayed effective dates for implementation; and
    5. Other considerations and provisions that are consistent with state law.
  4. The governing body of the city shall cause the complete text, or a fair and accurate summary, of the plan to be published in the official newspaper of the city, not less than two weeks nor more than thirty days, before the date of the election. The governing body may, prior to the election, hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion of the purpose and provisions of the plan.

Source: S.L. 1993, ch. 401, § 47; 1997, ch. 108, § 27.

40-49-08. Organization of board of park commissioners — City auditor to act as treasurer of board or board to appoint clerk.

Two weeks after their election, the members of the board of park commissioners shall organize the board by selecting a president and a vice president. The city auditor shall be ex officio treasurer of the park district or the board may appoint a clerk and such other employees as shall be deemed needed for the efficient conduct of the district’s business and shall fix their compensation. The clerk shall take the oath prescribed for civil officers and shall obtain such bond as may be required by the board.

Source: S.L. 1905, ch. 143, § 4; R.C. 1905, § 3020; S.L. 1907, ch. 179, § 4; 1913, ch. 290, § 4; C.L. 1913, §§ 4058, 4067; S.L. 1929, ch. 180, § 1; 1935, ch. 204, § 1; R.C. 1943, § 40-4908; S.L. 1967, ch. 323, § 218; 1973, ch. 320, § 17; 1981, ch. 422, § 1; 1987, ch. 498, § 3.

Cross-References.

Bond of civil officers, see §§ 44-01-11 and 44-01-12.

Oath of civil officers, see § 44-01-05.

40-49-09. Vacancies — How filled — Removal of residence creates vacancy.

Vacancies on the board of park commissioners shall be filled by the board until the next regular election of members thereof at which time such vacancies shall be filled by election for the unexpired term. The removal of the person’s residence from the park district by a member of the board shall create a vacancy thereon.

Source: S.L. 1905, ch. 143, § 4; R.C. 1905, § 3020; S.L. 1907, ch. 179, § 4; 1913, ch. 290, § 4; C.L. 1913, §§ 4058, 4067; S.L. 1929, ch. 180, § 1; 1935, ch. 204, § 1; R.C. 1943, § 40-4909.

40-49-10. Members of board of park commissioners may receive compensation — Interest in contracts restricted.

The members of the board of park commissioners are entitled to receive compensation for their services in the amount approved by the board in the park district annual budget. A park board member may not be directly or indirectly interested in any contract requiring the expenditure of park district funds unless the contract has been approved by two-thirds of the park board. Before the contract is approved, a motion must be made and approved that the service or property is not readily available elsewhere at equal cost. Regardless of this section, any park board, by resolution duly adopted, may contract with park board members for minor supplies or incidental expenses.

Source: S.L. 1905, ch. 143, § 4; R.C. 1905, § 3020; S.L. 1907, ch. 179, § 4; 1913, ch. 290, § 4; C.L. 1913, §§ 4058, 4067; S.L. 1929, ch. 180, § 1; 1935, ch. 204, § 1; R.C. 1943, § 40-4910; S.L. 1955, ch. 279, § 1; 1957 Supp., § 40-4910; S.L. 1989, ch. 493, § 1; 2003, ch. 348, § 1.

40-49-11. Regular and special meetings of the board of park commissioners — Procedure.

The board of park commissioners shall hold a regular meeting at least once each month at a time and place to be designated by ordinance and such special meetings as it may deem necessary. A special meeting may be called at any time by the president or any two members of the board to consider matters specified in the call of such meeting. Written notice of any special meeting shall be given to each member of the board prior to such meeting. The board may adopt such rules of procedure as it deems necessary.

Source: S.L. 1905, ch. 143, § 6; R.C. 1905, § 3022; S.L. 1907, ch. 179, § 6; 1913, ch. 290, § 6; C.L. 1913, §§ 4060, 4069; R.C. 1943, § 40-4911; S.L. 1959, ch. 313, § 1.

40-49-12. Powers of the board of park commissioners.

A board of park commissioners may:

  1. Acquire by purchase, gift, devise, condemnation subject to chapter 32-15, conveyance pursuant to Public Law No. 115-306, or otherwise, land anywhere within this state, or outside this state if located adjacent to a boundary of this state and of the park district, for parks, boulevards, and ways. The board has the sole and exclusive authority to maintain, govern, and improve the land, and to provide for the erection of structures thereon. Such parks, boulevards, and ways are considered for purposes of taxation and for all other purposes as being within the territorial limits of the municipality. If the board has acquired the legal title in fee to such lands, the board may sell and convey the same. A conveyance must be executed by the president and clerk of the board upon a resolution approved by not less than two-thirds of the members thereof.
  2. Lay out, open, grade, curb, pave, and otherwise improve any path, way, or street, in, through, or around the parks, and construct, erect, build, maintain, manage, and govern any and all buildings, pavilions, play and pleasure grounds or fields, and such other improvements of a like character as may be deemed necessary.
  3. Pass all ordinances necessary and requisite to carry into effect the powers granted to a board of park commissioners, with such penalties as the board may deem proper. No such penalty, however, shall exceed five hundred dollars.
  4. Levy special assessments on all property especially benefited by the purchase, opening, establishment, and improvement of such parks or boulevards and of ways or streets about the same.
  5. Employ such engineers, surveyors, clerks, and other employees, including a police force, as may be necessary, define and prescribe their respective duties, and fix and pay their compensation.
  6. Issue negotiable bonds of the park district as provided in title 21.
  7. Levy taxes upon all the property within the district for the purpose of maintaining and improving parks, boulevards, and ways, and to defray the expenses of the district. The proceeds of the taxes shall be available also for use in payment for any land purchased during the year or previously, or for improvements previously made for park purposes.
  8. Establish building lines for all property fronting on any park, boulevard, or way under the direction and control of the board, and control the subdivision and platting of property within four hundred feet [121.92 meters] thereof.
  9. Borrow money to defray the expenses of the year, subject to the limitations contained in title 21, in anticipation of taxes already levied, and issue therefor the warrants or other obligations of the district.
  10. Connect any park or parks owned or controlled by it with any other park or parks, and for that purpose, it may select and take charge of any connecting street or streets or parts thereof; and the board shall have the sole and exclusive charge and control of any street or streets taken for such purpose.
  11. Plant, set out, maintain, protect, and care for shade trees in any of the public streets or highways of the park district. The board may specify and regulate the kinds of trees that shall be planted in any such street or highway, the size and location of such trees, and the methods to be used in the planting and cultivation thereof and may pass such ordinances as may be necessary for the protection and control of such trees.
  12. Plat and lay out such portions of park property as are not needed for the accommodation of the general public, and lease and demise lots or portions thereof for residential or concession purposes. The board may prescribe by ordinances the use that may be made of such leaseholds and the character of structures that may be placed thereon and may regulate generally the use and enjoyment thereof by the lessees or their successors.
  13. Levy taxes upon all the property within the district, within the general fund levy authority of section 57-15-12, for the purpose of funding a comprehensive health care program for district employees.

Source: S.L. 1905, ch. 143, § 5; R.C. 1905, § 3021; S.L. 1907, ch. 179, § 5; 1909, ch. 176, §§ 1, 5; 1911, ch. 75, § 1; 1913, ch. 290, § 5; C.L. 1913, §§ 4059, 4068; S.L. 1915, ch. 71, § 1; 1917, ch. 178, § 1; 1921, ch. 96, § 1; 1925 Supp., § 4059; S.L. 1927, ch. 194, § 1; 1929, ch. 180, § 2; 1931, ch. 198, § 1; R.C. 1943, § 40-4912; S.L. 1967, ch. 323, § 219; 1973, ch. 336, § 1; 1975, ch. 106, § 457; 1979, ch. 450, § 1; 1989, ch. 494, § 1; 2001, ch. 510, § 3; 2007, ch. 293, § 26; 2019, ch. 97, § 3, effective March 20, 2019.

Effective Date.

The 2007 amendment of this section by section 26 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

Cross-References.

Boulevards, power of park commissioners with reference to, see § 40-32-10.

County tax deed lands, transfer to municipality for park purposes, see § 11-27-08.

Motor vehicle insurance, park district may carry, see § 39-01-08.

Recreation centers and facilities, establishment, see ch. 40-55.

Sale or transfer of lands acquired under section 11-27-08, authority for, see § 40-49-23.

Sale or transfer of lands acquired under section 11-27-08, validation of sales prior to March 3, 1955, see § 1-06-05.

Tax levies and tax levy limitations, see §§ 57-15-11, 57-15-12.

Notes to Decisions

Subdivision 2.

Where the board of park commissioners has not taken affirmative action to improve a street, there is no conflict of jurisdiction between the board and the municipal authorities. Bischke v. Minot, 55 N.D. 531, 215 N.W. 81, 1927 N.D. LEXIS 137 (N.D. 1927).

Subdivision 4.

Where power to pave and levy special assessments for improvement of street alongside park is conferred on park commission, governing body of city is without authority to levy special assessment or authorize paving. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Subdivision 8.

The purpose of this subsection is to grant the park commission the power to supervise property immediately beyond and adjoining the park so that both public and private property have uniformity of building lines, parking, boulevarding and pleasing symmetry of contour. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

Subdivision 10.

The authority of the park commission is not limited as to streets immediately surrounding the park, nor is it sole and exclusive as to connecting streets with other parks which are miles away. City of Fargo v. Gearey, 33 N.D. 64, 156 N.W. 552, 1916 N.D. LEXIS 70 (N.D. 1916).

DECISIONS UNDER PRIOR LAW

Park.

Where a village had availed itself of the privilege of organizing a park district, the board of trustees of the village had no power to maintain an action to condemn property for park purposes. Village of Reeder v. Hanson, 55 N.D. 331, 213 N.W. 492, 1927 N.D. LEXIS 41 (N.D. 1927).

40-49-13. Ordinances — Powers exercised by — Readings — Adopting — Approving — Publication — Enacting clause.

The powers of the board of park commissioners shall be exercised by ordinance unless otherwise provided in this chapter. All ordinances shall be read twice, and at least eight days shall intervene between the readings. Ordinances shall be adopted by a yea and nay vote, shall be approved by the president, shall be published once in the official newspaper of the municipality, and shall go into effect within three days after the publication thereof. The enacting clause of all ordinances shall be: “Be it enacted by the board of park commissioners of the park district of the city of _________ ”.

Source: S.L. 1905, ch. 143, § 6; R.C. 1905, § 3022; S.L. 1907, ch. 179, § 6; 1913, ch. 290, § 6; C.L. 1913, §§ 4060, 4069; R.C. 1943, § 40-4913; S.L. 1967, ch. 323, § 220.

Cross-References.

Publication where no newspaper published in district, see § 40-01-11.

40-49-14. When yea and nay vote taken — Awarding contracts — Debt limit — Bills, claims, and demands against board.

  1. Yea and nay votes must be taken on all propositions involving the expenditure of money, levying of taxes, or the issuance of bonds or certificates of indebtedness. Approval of an expenditure of money must be recorded in the record of the board’s proceedings and is sufficient to indicate approval without requiring the members to sign or initial the voucher or order for payment. Except as provided in chapter 48-01.2, in an emergency situation, or for cooperative purchases with the office of management and budget as provided in chapter 54-44.4, all contracts exceeding fifty thousand dollars must be awarded to the lowest responsible bidder after advertisement in the official newspaper of the municipality once each week for two successive weeks. The board may reject any or all bids. All contracts must be in writing and must be signed by the president of the board or a designated representative and unless so executed, they shall be void. The debt of a park district may not exceed one percent of the taxable property within the district according to the last preceding assessment. No bill, claim, account, or demand against the district may be audited, allowed, or paid until a full, written, itemized statement has been filed with the governing body or unless otherwise authorized by the governing body pursuant to contract or other action. The governing body may require the filing of any additional information which it may deem necessary to the proper understanding and audit of any claim or account and it may require the filing of a sworn statement in such form as it may prescribe or as noted below:
  2. As used in this section, “emergency situation” means a sudden or unexpected occurrence that requires immediate action to protect public health, safety, or property.

CERTIFICATE I do hereby certify that the within bill, claim, account, or demand is just and true; that the money therein charged was actually paid for the purposes therein stated; that the services therein charged were actually rendered and of the value therein charged; and that no part of such bill, claim, account, or demand has been paid; and that the goods therein charged were actually delivered and were of the value charged. Sign here If signed for a firm or company, show authority on this line.

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Source: S.L. 1905, ch. 143, § 6; R.C. 1905, § 3022; S.L. 1907, ch. 179, § 6; 1913, ch. 290, § 6; C.L. 1913, §§ 4060, 4069; R.C. 1943, § 40-4914; S.L. 1947, ch. 282, § 1; 1957 Supp., § 40-4914; S.L. 1975, ch. 366, § 7; 1983, ch. 283, § 5; 1987, ch. 499, § 1; 1995, ch. 443, § 14; 2007, ch. 403, § 11; 2009, ch. 351, § 1; 2019, ch. 340, § 1.

Effective Date.

The 2009 amendment of this section by section 1 of chapter 351, S.L. 2009 became effective April 29, 2009, pursuant to an emergency clause in section 2 of chapter 351, S.L. 2009.

The 2007 amendment of this section by section 11 of chapter 403, S.L. 2007 became effective August 1, 2007.

Cross-References.

Publication where no newspaper published in district, see § 40-01-11.

40-49-15. Purchase of land by city park district on installment contract — Conditions and limitations.

After declaring by resolution duly passed that an emergency exists in that it is desirable and necessary that additional lands, as described in the resolution, be acquired for park purposes, the board of park commissioners of any city may enter into a contract or contracts for the purchase of such additional land for park purposes and for the payment of the purchase price therefor in annual installments. The power to enter into such contract shall be subject to the following limitations and conditions:

  1. All moneys to be paid annually under any such contract shall be available and paid only from revenues to be derived from the authorized tax levy of the park district.
  2. Contracts which at any time shall create aggregate future obligations of the park district in an amount in excess of one-fifth of one percent of the value of all taxable property within the park district may not be entered into under the provisions of this section.
  3. The total amount contracted to become payable within any year by any park board shall not exceed twenty percent of the authorized tax revenue of the park district for the year in which any such contract is made.

Source: S.L. 1927, ch. 193, § 1; R.C. 1943, § 40-4915.

40-49-16. City engineer is ex officio engineer and surveyor for board of park commissioners.

The city engineer of any city included within a park district shall be ex officio engineer and surveyor for the board of park commissioners and shall render to the board such services as it may require.

Source: S.L. 1905, ch. 143, § 5, subs. 5; R.C. 1905, § 3021, subs. 5; S.L. 1907, ch. 179, § 5, subs. 5; 1909, ch. 176, § 1, subs. 5; 1911, ch. 75, § 1, subs. 5; C.L. 1913, § 4059, subs. 5; S.L. 1917, ch. 178, § 1, subs. 5; 1921, ch. 96, § 1, subs. 5; 1925 Supp., § 4059, subs. 5; S.L. 1929, ch. 180, § 2, subs. 5; R.C. 1943, § 40-4916.

Cross-References.

City engineer, see § 40-20-03.

40-49-17. Jurisdiction to determine actions involving violations of ordinances of board of park commissioners.

Full and exclusive jurisdiction to try and determine all claims for relief involving violations of rules or ordinances enacted by the board of park commissioners is vested in the municipal judge. The procedure, including the right of appeal, is the same as in actions involving offenses against city ordinances.

Source: S.L. 1905, ch. 143, § 7; R.C. 1905, § 3023; S.L. 1907, ch. 179, § 7; 1913, ch. 290, § 7; C.L. 1913, §§ 4061, 4070; R.C. 1943, § 40-4917; S.L. 1967, ch. 323, § 221; 1985, ch. 82, § 105.

40-49-18. General code provisions to govern park districts.

Except as otherwise provided in this chapter, the board of park commissioners and its officers and the park district shall be governed, in the issuing of warrants and certificates of indebtedness and in the levying of any tax or special assessment, or in carrying out, enforcing, or making effective any of the powers granted in this chapter, by the provisions of the laws of this state applicable to municipalities of the kind in which the park district is established.

Source: S.L. 1905, ch. 143, § 8; R.C. 1905, § 3024; S.L. 1907, ch. 179, § 8; 1913, ch. 290, § 8; C.L. 1913, §§ 4062, 4071; R.C. 1943, § 40-4918.

Notes to Decisions

Election for Excess Levy.

The act of the voters in authorizing an increase in taxing authority is not the act of levying the tax, and thus the form of the ballot in park district election for excess levy was proper, even though the municipal ballot form was not followed. Great N. Ry. v. Flaten, 225 N.W.2d 75, 1974 N.D. LEXIS 150 (N.D. 1974).

40-49-19. Dissolution of village park district — Petition for election — Notice of election — Order of dissolution. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

40-49-20. Park districts may adopt civil service systems.

The board of park commissioners of a park district in any city which has adopted a civil service system pursuant to the provisions of chapter 40-44, may, with the consent of the governing body of such city, provide that the employees of such park district shall be subject to the provisions of said chapter 40-44; provided, that appointments to positions of employment within such park district shall be made by the board of park commissioners of the district.

Source: S.L. 1949, ch. 280, § 1; R.C. 1943, 1957 Supp., § 40-4920.

40-49-21. Park districts may provide for employees’ pensions.

A board of park commissioners may provide for employees’ pensions pursuant to an authorized city pension plan with the consent of the city governing body and the consent of not less than a majority of the city employees covered by the city pension plan. In addition, a board of park commissioners may provide for employer pensions pursuant to chapter 54-52 or under a program approved by the internal revenue service. Payments made by employees or taxes levied by the park district must be paid into the employees’ pension fund. If a board of park commissioners wishes to leave an existing city pension plan, the board, upon the request of the pension fund governing body, shall fund an actuarial study of the financial impacts to the pension fund. Any losses or costs to the fund by the park district leaving the pension plan are the responsibility of the park district. A park district may not leave the city’s pension plan without the approval of the pension fund governing body.

Source: S.L. 1949, ch. 284, § 1; R.C. 1943, 1957 Supp., § 40-4921; S.L. 1997, ch. 356, § 1.

40-49-22. Tax levy for park district employees’ pension fund.

A park district adopting the provisions of section 40-49-21 provide funding from revenues derived from its general fund levy authority for the benefit of its employees’ pension fund.

Source: S.L. 1949, ch. 284, § 2; R.C. 1943, 1957 Supp., § 40-4922; S.L. 1983, ch. 606, § 49; 1997, ch. 356, § 2; 2015, ch. 439, § 53, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 53 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-49-23. Land transfers or abandonment.

Any municipality or park district may abandon and discontinue as a park or recreational area any land acquired by any municipality or park district for park and recreational purposes under the provisions of section 11-27-08 or property conveyed pursuant to Public Law No. 115-306 and any municipality or park district may sell, convey, or transfer any such lands free from any restrictions as to their use for park and recreational purposes, except as otherwise provided in Public Law No. 115-306.

Source: S.L. 1955, ch. 86, § 2; R.C. 1943, 1957 Supp., § 40-4923; 2019, ch. 97, § 4, effective March 20, 2019.

Cross-References.

Validation of sales prior to March 3, 1955, see § 1-06-05.

40-49-24. Park district authorized to collect user fees and issue evidences of indebtedness in anticipation of user fee revenues.

  1. A board of park commissioners may prescribe and collect user fees for facilities or activities furnished by the park district and in anticipation of the collection of such revenues may issue evidences of indebtedness for the purpose of acquiring, constructing, improving, and equipping parks and park and recreational buildings and facilities, and for the purpose of acquiring land for those purposes.
  2. Evidences of indebtedness issued under this section are payable, as to principal and interest, solely from all or part of the revenues referred to in this section and pledged for such payment.
  3. Notwithstanding any other provision of law, evidences of indebtedness issued under this section are fully negotiable, do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and together with interest thereon and income therefrom, are not subject to taxation by the state of North Dakota or any political subdivision of the state.
  4. Evidences of indebtedness issued under this section must be authorized by resolution of the board of park commissioners and, notwithstanding any other provision of law, may be issued and sold in such manner and amounts, at such times, in such form, and upon such terms, bearing interest at such rate or rates, as may be determined in the resolution.

Source: S.L. 1987, ch. 500, § 1.

40-49-25. Medal of honor monument.

Upon completion of the medal of honor monument in Roosevelt park in Minot, ownership and responsibility for the monument’s maintenance belongs to the Minot park board or its successor.

Source: S.L. 2007, ch. 352, § 1.

Effective Date.

This section became effective July 1, 2007.

CHAPTER 40-49.1 Boards of Park Commissioners Combination

40-49.1-01. Combination of boards of park commissioners — Plan.

The membership and functions of a board of city park commissioners may be combined with one or more boards of city park commissioners or with one or more boards of county park commissioners pursuant to a plan adopted pursuant to this chapter. This chapter does not supersede the procedure and requirements of chapter 11-28 with respect to the creation of a joint county park district. A proposal for combining boards of park commissioners may be initiated:

  1. By execution of a joint powers agreement between participating city or county boards of park commissioners incorporating a plan for combining boards of park commissioners; or
  2. By a petition, signed by ten percent or more of the total number of qualified electors of each affected city park district or county voting for governor at the most recent gubernatorial election and submitted to the city park district or county, incorporating a plan for combining boards of park commissioners.

Source: S.L. 1993, ch. 401, § 48.

40-49.1-02. Election on combination plan.

If a plan for combining boards of park commissioners is proposed by agreement or petition, the participating or affected boards shall immediately submit the proposed plan to the governing bodies of the affected cities and, if applicable, to the board of county commissioners of any affected county. Those boards shall jointly submit the question of combination to the qualified electors of the affected cities and counties at a primary or general election as specified in the agreement or petition within two years of the initial submission of the agreement or petition, and shall cause the complete text, or a fair and accurate summary, of the plan to be published in the official newspapers of the affected cities and counties, not less than two weeks nor more than thirty days, before the date of the election. The boards of park commissioners may, prior to the election, hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion of the purpose and provisions of the plan. The plan incorporated in the agreement or petition is effective and becomes operative according to its terms if a majority of the qualified electors voting on the question in each affected city or county approves the plan.

Source: S.L. 1993, ch. 401, § 48; 1997, ch. 108, § 28.

40-49.1-03. Contents of plan — Effect of plan — Limitations — Revision or termination.

  1. Notwithstanding any other law regarding the structure of a board of park commissioners, a plan for combining a board of city park commissioners with another board of city park commissioners or a board of county park commissioners may specify:
    1. The number, selection, functions, qualifications and training, and terms of the members of the proposed combined board;
    2. The manner of apportionment of the costs of operating the combined board;
    3. Procedures for the selection, transfer, reassignment, or termination of personnel associated with the combined board and previous boards;
    4. Procedures for the transfer of powers, records, documents, and property, for the equalization of the property, funds on hand, and debts, and for the adjustment of existing bonded indebtedness and other obligations in a manner which will provide for a fair and equitable burden of taxation for debt service;
    5. The transition in implementing the plan, including elements that consider the reasonable expectations of current officeholders or personnel such as delayed effective dates for implementation;
    6. A limited application or temporary implementation of the plan, including provisions that permit implementation on a trial or experimental basis such as the expiration of the plan on a date certain in the future, required reapproval of the plan by the electors at a future date, or a phased-in implementation of various components of the plan; and
    7. Other provisions which are consistent with the powers and functions of a board of park commissioners and with state law.
  2. As a political subdivision of the state, the combined board of park commissioners has the status of a board of city park commissioners, or the status of both a board of city park commissioners and a board of county park commissioners if both are combined. If applicable, all laws relating to the functions and powers of a board of city park commissioners and, if city and county boards are combined, laws relating to the functions and powers of a board of county park commissioners apply to a combined board of park commissioners.
  3. A plan for combining boards of park commissioners may not repeal or diminish any general law of the state directing or requiring a board of park commissioners to carry out any function or provide any service. A combined board of park commissioners, resulting from a combination of boards of city and county park commissioners, may levy taxes within the portion of the combined district outside city limits within the limitations provided by law for a board of county park commissioners and may levy taxes within the portion of the combined park district that is within city limits within the limitations provided by law for city park districts. The plan must be approved by the electorate in each affected city and county.
  4. A plan adopted pursuant to this chapter may be revised or terminated through the procedures set forth in this chapter for adopting a plan.

Source: S.L. 1993, ch. 401, § 48; 2005, ch. 350, § 1.

Effective Date.

The 2005 amendment of this section by section 1 of chapter 350, S.L. 2005 becomes effective for taxable years beginning after December 31, 2005, pursuant to section 2 of chapter 350, S.L. 2005.

CHAPTER 40-50 Platting Townsites and Correction and Vacation of Plats [Repealed]

[Repealed by S.L. 1987, ch. 501, § 20]

CHAPTER 40-50.1 Platting of Townsites

40-50.1-01. Laying out townsites, additions, and subdivisions — Survey and plat required — Contents of plat.

Any person desiring to lay out a townsite, an addition to a townsite, or a subdivision of land shall cause the land to be surveyed and a plat made of the land. The written plat must comply with the following:

  1. The plat must describe particularly and set forth all the streets, alleys, and public grounds, and all outlots or fractional lots within or adjoining the townsite or jurisdiction, together with the names, widths, courses, boundaries, and extent of all such streets, alleys, and public grounds, and giving the dimensions of all lots, streets, alleys, and public grounds.
  2. All lots and blocks, however designated, must be numbered in progressive numbers and their precise length, width, and area be stated on the map or plat. The streets, alleys, or roads which divide or border the lots must be shown on the map or plat.
  3. The plat must indicate that all outside boundary monuments have been set and indicate those interior monuments that have been set. There must be shown on the plat all survey and mathematical information, including bearings and distances, and data necessary to locate all monuments and to locate and retrace all interior and exterior boundary lines appearing on the plat. All interior lot lines and exterior boundary lines of the plat must be correctly designated on the plat and show bearings on all straight lines, or angles at all angle points, and central angle, radius, and arc length for all curves. All distances must be shown between all monuments as measured to the hundredth of a foot [0.3048 centimeter]. All lot distances must be shown on the plat to the nearest hundredth of a foot [0.3048 centimeter] and all curved lines within the plat must show central angles, radii, and arc distances. A north arrow and the scale of the plat must be shown on the plat. The scale must be of a dimension that the plat may be easily interpreted. If a curved line constitutes the line of more than one lot in any block of a plat, the central angle for that part of each lot on the curved line must be shown.
  4. Ditto marks may not be used on the plat for any purposes.
  5. If a river, stream, creek, or lake constitutes a boundary line within or of the plat, a survey line must be shown with bearings or angles and distances between all angle points and their relation to a waterline, and all distances measured on the survey line between lot lines must be shown, and the survey line shown as a dashed line.
  6. The unadjusted outside boundary survey and the plat survey data must close by latitude and departure with an error that does not exceed one part in ten thousand parts.
  7. All rivers, streams, creeks, lakes, and all public highways, streets, and alleys of record must be correctly located and plainly shown and designated on the plat.
  8. The names and adjacent boundary lines of any adjoining platted lands must be dotted on the plat.
  9. The scale must be shown graphically and the basis of bearings must be shown. The plat must be dated as to the completion of the survey and preparation of the plat.
  10. The purpose of any easement shown on the plat must be clearly stated. Building setbacks may not be shown on the plat.
  11. Any plat which includes lands abutting upon any lake, river, or stream must show a contour line denoting the present shoreline, water elevation, and the date of survey. If any part of a plat lies within the one hundred year floodplain of a lake, river, or stream as designated by the department of water resources or a federal agency, the mean sea level elevation of that one hundred year flood must be denoted on the plat by numerals. Topographic contours at a two-foot [60.96-centimeter] contour interval referenced to mean sea level must be shown for the portion of the plat lying within the floodplain. All elevations must be referenced to a durable benchmark described on the plat with its location and elevation to the nearest hundredth of a foot [0.3048 centimeter], which must be given in mean sea level datum.

Source: S.L. 1987, ch. 501, § 1; 1999, ch. 542, § 4; 2021, ch. 488, § 21, effective August 1, 2021.

Notes to Decisions

Dedication to Public Use.

Under N.D.C.C. § 40-50.1-05, a developer’s dedication of the subdivision roads and public rights of way divested the developer of ownership in the roads where the plat for the subdivision declared that the developer donated and dedicated to the public any rights of way as hereon shown, for public use forever, each plat contained a full and accurate legal description of the property, a surveyor’s certificate, and the signature of the county commission chairperson approving the plat, nothing on the face of the plats indicated the county approved them on the condition it would not be responsible for maintenance of the roads, and the plats were recorded as required by N.D.C.C. § 40-50.1-04. Thus, an HOA’s motion for summary judgment on the developer’s trespass and negligence claims arising from the placement of water lines under the roads was properly granted. Aftem Lake Devs., Inc. v. Riverview Homeowners Ass'n, 2020 ND 26, 938 N.W.2d 159, 2020 N.D. LEXIS 26 (N.D. 2020).

DECISIONS UNDER PRIOR LAW

County Auditor’s Plat.

Platting of municipalities was governed by former chapter; county auditor’s plat made under former section 57-02-39 was for taxation purposes only and was not platting pursuant to the chapter. Frandsen v. Mayer, 155 N.W.2d 294, 1967 N.D. LEXIS 122 (N.D. 1967).

40-50.1-02. Monuments required for survey — Destruction — Penalty.

Durable ferromagnetic monuments must be set at all angle and curve points on the outside boundary lines of the plat. The monuments must be at least eighteen inches [45.72 centimeters] in length and at least one-half inch [1.72 centimeters] in sectional dimension. Any monument of the survey must bear the registration number of the land surveyor making the survey. Any person who disturbs, removes, or destroys any survey or reference monument or landmark evidencing a property line or cornerpost is guilty of a class B misdemeanor.

Source: S.L. 1987, ch. 501, § 2.

40-50.1-03. Instruments of dedication — Certifying and recording plat.

The plat must contain a written instrument of dedication, which is signed and acknowledged by the owner of the land. When there is divided ownership, there must be indicated under each signature the lot or parts of lots in which each party claims an interest. All signatures on the plat must be written with black ink, not ballpoint ink. The instrument of dedication must contain a full and accurate description of the land platted. The registered land surveyor shall certify on the plat that the plat is a correct representation of the survey, that all distances are correct and monuments are placed in the ground as shown, and that the outside boundary lines are correctly designated on the plat. The dedication and certificate must be sworn to before an officer authorized to administer an oath. The plat must be presented for approval to the governing body affected by the plat, together with a copy of a title insurance policy or an attorney’s opinion of title, running to the benefit of the governing body affected by the plat, stating the name of the owner of record.

Source: S.L. 1987, ch. 501, § 3; 2005, ch. 351, § 1.

Effective Date.

The 2005 amendment of this section by section 1 of chapter 351, S.L. 2005 became effective August 1, 2005.

Notes to Decisions

Dedication Effective.

Under N.D.C.C. § 40-50.1-05, a developer’s dedication of the subdivision roads and public rights of way divested the developer of ownership in the roads where the plat for the subdivision declared that the developer donated and dedicated to the public any rights of way as hereon shown, for public use forever, each plat contained a full and accurate legal description of the property, a surveyor’s certificate, and the signature of the county commission chairperson approving the plat, nothing on the face of the plats indicated the county approved them on the condition it would not be responsible for maintenance of the roads, and the plats were recorded as required by N.D.C.C. § 40-50.1-04. Thus, an HOA’s motion for summary judgment on the developer’s trespass and negligence claims arising from the placement of water lines under the roads was properly granted. Aftem Lake Devs., Inc. v. Riverview Homeowners Ass'n, 2020 ND 26, 938 N.W.2d 159, 2020 N.D. LEXIS 26 (N.D. 2020).

Statutory Dedication Not Effective.

Under former N.D.C.C. § 40-50-04 (repealed 1987), fee simple title to a parcel 1 did not vest in the city where the dedication in the plat did not mention the parcel, city dike access, or any description of the parcel. Winnie Dev. LLLP v. Reveling, 2018 ND 47, 907 N.W.2d 413, 2018 N.D. LEXIS 57 (N.D. 2018).

40-50.1-04. Recording plat.

Upon final approval of a plat under section 11-33.2-11 or 40-48-21, the subdivider shall record the plat in the office of the recorder of the county where the plat is located. Whenever plat approval is required by a jurisdiction, the recorder may not accept any plat for recording unless the plat officially notes the final approval of the governing body of the jurisdiction and acknowledgment of the planning and zoning commission.

Source: S.L. 1987, ch. 501, § 4; 2001, ch. 120, § 1.

Notes to Decisions

Dedication Effective.

Under N.D.C.C. § 40-50.1-05, a developer’s dedication of the subdivision roads and public rights of way divested the developer of ownership in the roads where the plat for the subdivision declared that the developer donated and dedicated to the public any rights of way as hereon shown, for public use forever, each plat contained a full and accurate legal description of the property, a surveyor’s certificate, and the signature of the county commission chairperson approving the plat, nothing on the face of the plats indicated the county approved them on the condition it would not be responsible for maintenance of the roads, and the plats were recorded as required by N.D.C.C. § 40-50.1-04. Thus, an HOA’s motion for summary judgment on the developer’s trespass and negligence claims arising from the placement of water lines under the roads was properly granted. Aftem Lake Devs., Inc. v. Riverview Homeowners Ass'n, 2020 ND 26, 938 N.W.2d 159, 2020 N.D. LEXIS 26 (N.D. 2020).

40-50.1-05. Conveyance of land by noting or marking map or plat — Status as general warranty — Land for public use.

When the plat has been made out and certified, acknowledged, and recorded as required by sections 40-50.1-01, 40-50.1-03, and 40-50.1-04, every donation or grant to the public, or to any individual, religious society, corporation, or limited liability company, marked or noted as such on the plat or map is a sufficient conveyance to vest the fee simple title in the parcel of land as designated on the plat. The mark or note made on a plat or map is for all intents and purposes a general warranty against the donors, their heirs and representatives, to the donees or grantees for the expressed and intended uses and purposes named in the plat and for no other use or purpose. The land intended to be used for the streets, alleys, ways, or other public uses in any jurisdiction or addition thereto must be held in the corporate name of the jurisdiction in trust for the uses and purposes set forth and expressed and intended.

Source: S.L. 1987, ch. 501, § 5; 1993, ch. 54, § 106.

Notes to Decisions

Dedication to Public Use.

District court did not err in concluding as a matter of law that the original dedication of the streets was a statutory rather than a common law dedication. The streets were dedicated by way of a plat which was signed and acknowledged by the original owners of the land. Becker v. Burleigh Cty., 2019 ND 68, 924 N.W.2d 393, 2019 N.D. LEXIS 78 (N.D. 2019).

Under N.D.C.C. § 40-50.1-05, a developer’s dedication of the subdivision roads and public rights of way divested the developer of ownership in the roads where the plat for the subdivision declared that the developer donated and dedicated to the public any rights of way as hereon shown, for public use forever, each plat contained a full and accurate legal description of the property, a surveyor’s certificate, and the signature of the county commission chairperson approving the plat, nothing on the face of the plats indicated the county approved them on the condition it would not be responsible for maintenance of the roads, and the plats were recorded as required by N.D.C.C. § 40-50.1-04. Thus, an HOA’s motion for summary judgment on the developer’s trespass and negligence claims arising from the placement of water lines under the roads was properly granted. Aftem Lake Devs., Inc. v. Riverview Homeowners Ass'n, 2020 ND 26, 938 N.W.2d 159, 2020 N.D. LEXIS 26 (N.D. 2020).

DECISIONS UNDER PRIOR LAW

Analysis

Acceptance of Dedication.

A statutory dedication is in the nature of a grant and does not become effective until accepted by the grantee. Ramstad v. Carr, 31 N.D. 504, 154 N.W. 195, 1915 N.D. LEXIS 157 (N.D. 1915).

The question of whether there has been an acceptance depends primarily upon whether there has been an intent to accept the offer to dedicate and acceptance may be express or implied and need not be by any formal act unless provided by statute. Ramstad v. Carr, 31 N.D. 504, 154 N.W. 195, 1915 N.D. LEXIS 157 (N.D. 1915); City of Grand Forks v. Flom, 79 N.D. 289, 56 N.W.2d 324, 1952 N.D. LEXIS 122 (N.D. 1952).

A plat owner’s dedication of streets and alleys is not complete until the public accepts the dedication and where the plat has not been incorporated within a municipality and there has been no use or improvement of the streets and alleys, the public has not accepted. Hille v. Nill, 58 N.D. 536, 226 N.W. 635, 1929 N.D. LEXIS 248 (N.D. 1929).

Dedication to Public Use.

By the platting, dedication and acceptance of a street, a city acquired the right to use the land so dedicated for street purposes; the fee to the center of the street remains in the abutting owner or owners. Donovan v. Allert, 11 N.D. 289, 91 N.W. 441, 58 L.R.A. 775, 95 Am. St. Rep. 720 (1902), decided prior to the adoption of Art. 1, § 16 of the N.D. Const.Gram Constr. Co. v. Minneapolis, S. P. & S. S. M. Ry., 36 N.D. 164, 161 N.W. 732, 1916 N.D. LEXIS 184 (N.D. 1916); Casey v. Corwin, 71 N.W.2d 553, 1955 N.D. LEXIS 122 (N.D. 1955); Murphy v. Bismarck, 109 N.W.2d 635, 1961 N.D. LEXIS 75 (N.D. 1961); Dacotah Hotel Co. v. Grand Forks, 111 N.W.2d 513, 1961 N.D. LEXIS 100 (N.D. 1961).

The statutes prescribing the method of dedicating real property to public uses are not exclusive of the common-law method of dedication, and do not abrogate the well-settled rule of implied dedication by estoppel in pais. Cole v. Minnesota Loan & Trust Co., 17 N.D. 409, 117 N.W. 354, 1908 N.D. LEXIS 68 (N.D. 1908).

A city has the power to use, and control the use of, the entire area of a street for the benefit of the public in accordance with the powers vested in the city by statute. Kennedy v. Fargo, 40 N.D. 475, 169 N.W. 424, 1918 N.D. LEXIS 112 (N.D. 1918); City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959); Dacotah Hotel Co. v. Grand Forks, 111 N.W.2d 513, 1961 N.D. LEXIS 100 (N.D. 1961).

The title to streets and alleys is held by the municipality in trust for the public, not in a proprietary capacity, and a municipality is without power to alienate the same, regardless of whether the corporation owns the fee or has merely an easement and it holds as trustee for the public. City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

Withdrawal of Dedication.

Where there is a dedication made by the statutory method of filing a plat, and a sale of lots by the owner with reference thereto, it can be withdrawn only by a vacation of the plat under the statute. Ramstad v. Carr, 31 N.D. 504, 154 N.W. 195, 1915 N.D. LEXIS 157 (N.D. 1915); City of Grand Forks v. Flom, 79 N.D. 289, 56 N.W.2d 324, 1952 N.D. LEXIS 122 (N.D. 1952); City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

The purchaser of a lot within the regularly platted portion of an incorporated city accepted its status as city property and could not change its classification by his usage except by vacation of that portion of the city plat where his property was located. EISENZIMMER v. BELL, 75 N.D. 733, 32 N.W.2d 891, 1948 N.D. LEXIS 99 (N.D. 1948).

40-50.1-06. Correction of plats — Declaration of necessity by resolution — Publication.

If any part of any platted addition, outlot, or parcel of ground, in any jurisdiction, is found to be inadequately or erroneously described in the plat, or if the plat is in error or is deficient as to marked or scaled distances, angles, or descriptions, or has other defects which make it incorrect or deficient, the governing body of the jurisdiction, by resolution, may declare it necessary to correct the plat or plats or to replat the property. In that case, the resolution must be published in the official newspaper of the jurisdiction at least ten days before the meeting of the governing body to consider objections to the procedure.

Source: S.L. 1987, ch. 501, § 6.

40-50.1-07. Resolution declaring necessity for correcting plat — Contents.

The resolution mentioned in section 40-50.1-06 must set forth:

  1. The description of the property affected.
  2. The nature of the errors or defects.
  3. An outline of the proposed corrections.
  4. An estimate of the probable cost of having the corrections made.
  5. Notice that any interested owner may file objections to the proposed work or to its cost and that the objections will be heard and considered at a meeting designated for that purpose.
  6. The time the governing body of the jurisdiction will meet to consider all the objections.

Source: S.L. 1987, ch. 501, § 7.

40-50.1-08. Governing body to order work done after hearing objections.

After all the objections filed before the meeting have been heard and considered, the governing body of the jurisdiction, if it deems the work advisable and if the owners of the majority of the property affected have not filed a protest, shall order a land surveyor registered in this state to do the work in accordance with the resolution. If no interested owner has demanded the resurvey, the jurisdiction shall pay for the resurvey.

Source: S.L. 1987, ch. 501, § 8.

40-50.1-09. Requirements governing land surveyor in correcting plat or in replatting — Affidavit and certification.

The land surveyor designated to make the correction or to do the replatting shall follow the original hubs, stakes, monuments, and lines, and, by actual survey and measurements on the ground, shall make the plat conform to the divisions, subdivisions, blocks, lots, outlots, pieces, and parcels of land as originally laid out. All lost or disputed points, lines, and angles must be determined by actual survey and made to conform with the original survey and must be marked on the ground in a manner customary and as is provided in sections 40-50.1-01 through 40-50.1-17. All numbers, letterings, and names of references to blocks, lots, outlots, additions, streets, avenues, and alleys must be the same as on the original plat and the revised and corrected plat must be a true plat of the survey as made originally. The registered land surveyor shall make an affidavit and certificate that the plat has been made to the best of the land surveyor’s ability. The registered land surveyor shall affix that affidavit and certificate to the plat.

Source: S.L. 1987, ch. 501, § 9.

40-50.1-10. Filing completed plat — Publication of notice of completed plat.

The completed plat must be filed with the chief administrative officer of the jurisdiction, who shall publish a notice of the filing. The notice must stipulate that all interested parties may view the plat. The notice must set the date the governing body of the jurisdiction will meet to hear and consider objections to the survey as made and must be published at least ten days before the hearing.

Source: S.L. 1987, ch. 501, § 10.

40-50.1-11. Resurveys to determine merits of objections.

After hearing objections to the corrected plat, the governing body may order surveys and resurveys to determine the merit of any claim or objection. The governing body may adjourn the hearing until the necessary information is available.

Source: S.L. 1987, ch. 501, § 11.

40-50.1-12. Acceptance or rejection of corrected plat — Recording — Effect of corrected plat.

After completing the hearing, the governing body shall affirm or reject the corrected plat by resolution. If the plat is affirmed by a majority vote of the governing body, the plat must be recorded in the office of the recorder within sixty days and a blueprint of the plat must be filed in the office of the chief administrative officer. The plat so recorded and filed is the true and correct plat of the property described and supersedes all previous plats.

Source: S.L. 1987, ch. 501, § 12; 2001, ch. 120, § 1.

40-50.1-13. Assessment of costs of new plat — Publication of assessments — Approval of assessments.

The chief administrative officer shall assess the cost of making the plat against the properties benefited proportionally to the benefits received. The assessments are subject to the approval of the governing body of the jurisdiction after due consideration and hearing of all objections at a meeting designated for that purpose. At least ten days before the hearing, the assessments must be published in full by the chief administrative officer of the jurisdiction in the official newspaper of the jurisdiction. The chief administrative officer shall certify the assessments, when approved by the governing body.

Source: S.L. 1987, ch. 501, § 13.

40-50.1-14. Notice of errors on recorded plat — Certificate by original surveyor.

Notwithstanding section 40-50.1-06, if a plat, or what purports to be a plat, has been signed and filed in the office of the recorder of the county where the land is situated, and the plat fails to identify or correctly describe the land to be so platted or subdivided, or to show correctly on its face the tract of land intended or purported to be platted or subdivided, or is defective because the plat or subdivision and the description of land purported to be so platted or subdivided is inconsistent or incorrect, the registered land surveyor who prepared the plat may sign a certificate stating the nature of the error, omission, or defect and stating the information that surveyor believes corrects the error, supplies the omission, or cures the defect, referring, by correct book and page or document number, to the plat or subdivision and designating its name, if it has a name. The registered land surveyor shall date and sign the certificate.

Source: S.L. 1987, ch. 501, § 14; 1999, ch. 108, § 11; 2001, ch. 120, § 1.

40-50.1-15. Filing and recording of surveyor’s certificate.

The recorder of the county in which the land platted or subdivided is located shall accept each certificate for filing and recording upon payment of a fee commensurate with the length of the certificate. Neither witnesses nor an acknowledgment is required on any such certificate, but it must be signed by the registered land surveyor and must include a statement that the signing surveyor holds valid registration in this state. The recorder shall make suitable notations on the record of the plat or subdivision to which the certificate refers to direct the attention of anyone examining the plat or subdivision to the record of that certificate. No such certificate has the effect of destroying or changing vested rights acquired based on an existing plat or subdivision despite errors, defects, or omissions.

Source: S.L. 1987, ch. 501, § 15; 2001, ch. 120, § 1.

40-50.1-16. Vacation of plat — Before and after sale of lots — Effect.

  1. Before the sale of lots, a plat, any part of a plat, a subdivision of land, or a townsite may be vacated by the proprietors by a written instrument declaring the plat to be vacated. The instrument must be signed, acknowledged or approved, and recorded in the office in which is recorded the instrument to be vacated. The signing and recording of that instrument destroys the force and effect of the recording of the plat which is so vacated and divests all public rights in the streets, alleys, easements, and public grounds laid out as described in the plat.
  2. If lots have been sold, a plat or any part of a plat may be vacated by all owners of the lots in the plat joining in the signing of the instrument declaring the vacation. Vacation of streets and public rights is not effective without endorsement by the governing body that has the power to approve the plat. The endorsement must indicate the public rights to be vacated.

Source: S.L. 1987, ch. 501, § 16.

DECISIONS UNDER PRIOR LAW

Analysis

Compliance with Statute Mandatory.

Where there is a dedication made by the statutory method of filing a plat, and a sale of lots by the owner with reference thereto, it can be withdrawn only by a vacation of the plat under the statute. Ramstad v. Carr, 31 N.D. 504, 154 N.W. 195, 1915 N.D. LEXIS 157 (N.D. 1915); City of Grand Forks v. Flom, 79 N.D. 289, 56 N.W.2d 324, 1952 N.D. LEXIS 122 (N.D. 1952); City of Jamestown v. Miemietz, 95 N.W.2d 897, 1959 N.D. LEXIS 78 (N.D. 1959).

Duty of Other Lot Owners.

Where the proprietor of a portion of a plat vacates it, the owner of other lots must act to vindicate the rights abridged or destroyed thereby within the prescriptive period. Hille v. Nill, 58 N.D. 536, 226 N.W. 635, 1929 N.D. LEXIS 248 (N.D. 1929).

Error in Declaration of Vacation.

An erroneous statement in a proprietor’s declaration of vacation of a plat that he owns all of the plat does not invalidate the vacation as to the part which he in fact owns. Hille v. Nill, 58 N.D. 536, 226 N.W. 635, 1929 N.D. LEXIS 248 (N.D. 1929).

Rights of City.

Where a city has improved streets and alleys and has done other acts of a public nature within part of a plat attempted to be vacated, the city has acquired rights of which it cannot be deprived, at least without its consent. La Moure v. Lasell, 26 N.D. 638, 145 N.W. 577, 1914 N.D. LEXIS 156 (N.D. 1914).

40-50.1-17. Action by recorder.

The recorder shall write in plain, legible letters, in black ink that is not ballpoint ink, across that part of a plat which has been vacated the word “vacated” and shall make a reference on the plat to the volume and page or document number in which the instrument of vacation is recorded.

Source: S.L. 1987, ch. 501, § 17; 1999, ch. 108, § 12; 2001, ch. 120, § 1.

CHAPTER 40-51 Inclusion of Territory in and Exclusion of Territory from Municipalities [Repealed]

[Repealed by S.L. 1967, ch. 323, § 285; 1967, ch. 338, § 18; 1969, ch. 381, § 21]

CHAPTER 40-51.1 Annexation and Exclusion of Territory [Repealed]

[Repealed by S.L. 1969, ch. 381, § 21]

Note.

Chapter 40-51.1 was held unconstitutional in City of Carrington v. Foster County, 166 N.W.2d 377 (1969).

For present provisions, see ch. 40-51.2.

CHAPTER 40-51.2 Annexation and Exclusion of Territory

40-51.2-01. Short title.

This chapter may be cited as the Municipal Annexation Act of 1969.

Source: S.L. 1969, ch. 381, § 1.

Collateral References.

Validity of municipal bond issue as against owners of property annexation of which to municipality became effective after date of election at which issue was approved by voters, 10 A.L.R.2d 559.

Construction of regulations as to subdivision maps, or plats with respect to question of effect on corporate limits of filing or vacation of plat, 11 A.L.R.2d 524, 532.

Capacity to attack the fixing or extension of municipal limits or boundary, 13 A.L.R.2d 1279; 17 A.L.R.5th 195.

Proper remedy or procedure for attacking legality of proceedings annexing territory to municipal corporation, 18 A.L.R.2d 1255.

What land is contiguous or adjacent to municipality so as to be subject to annexation, 49 A.L.R.3d 589.

Right of one governmental subdivision to challenge annexation proceedings by another such subdivision, 17 A.L.R.5th 195.

40-51.2-02. Declaration of purpose.

It is hereby declared that the policies and procedures contained in this chapter are necessary and desirable for the orderly growth of urban communities in the state of North Dakota. It is the purpose of this chapter:

  1. To encourage natural and well-ordered development of municipalities of the state;
  2. To extend municipal government to areas which form a part of the whole community;
  3. To simplify government structure in urban areas; and
  4. To recognize the inter-relationship and interdependence between a municipal corporation and areas contiguous or adjacent thereto,

and to these ends this chapter shall be liberally construed. For the purposes of this chapter, contiguity will not be affected by the existence of a platted street or alley, a public or private right of way, or a public or private transportation right of way or area, or a lake, reservoir, stream, or other natural or artificial waterway between the annexing municipality and the land to be annexed.

Source: S.L. 1969, ch. 381, § 2.

Notes to Decisions

Double Annexation.

As a general rule, that body which first secures jurisdiction by commencing proceedings for annexation has priority over any other body subsequently commencing similar proceedings for the same territory, provided that the two sets of proceedings are “equivalent”. West Fargo v. Fargo, 251 N.W.2d 918, 1977 N.D. LEXIS 241 (N.D. 1977).

Where two municipalities attempted to annex the same property, the first commencing proceedings under N.D.C.C. § 40-51.2-07 and the second acting under N.D.C.C. § 40-51.2-03 a short while later, the rule of “first in time, first in right” applied, and the first municipality had jurisdiction to proceed, rendering the purported annexation by the second invalid. West Fargo v. Fargo, 251 N.W.2d 918, 1977 N.D. LEXIS 241 (N.D. 1977).

40-51.2-02.1. Annexation agreements.

The governing body of a city may enter a written annexation agreement with the governing body of another city regarding the annexation of property located within the extraterritorial zoning or subdivision regulation authority of the cities under chapter 40-47 or 40-48. An agreement is binding on the governing bodies of the cities for the term of the agreement unless the governing bodies agree otherwise or unless determined otherwise by an administrative law judge in accordance with this chapter. An agreement may not have a term greater than twenty years.

Source: S.L. 1997, ch. 357, § 1.

40-51.2-02.2. Annexation of land in the extraterritorial zoning or subdivision regulation authority of another city.

A city may not annex land located within the extraterritorial zoning or subdivision regulation authority of another city by ordinance or resolution unless:

  1. Written consent is received from the governing body of the other city; or
  2. The annexation is ordered by an administrative law judge in accordance with this chapter.

Source: S.L. 1997, ch. 357, § 2.

40-51.2-03. Annexation by petition of owners and electors.

Upon a written petition signed by not less than three-fourths of the qualified electors or by the owners of not less than three-fourths in assessed value of the property in any territory contiguous or adjacent to any incorporated municipality and not embraced within the limits thereof, the governing body of the municipality, by ordinance, may annex such territory to the municipality.

Source: S.L. 1969, ch. 381, § 3.

Notes to Decisions

In General.

Nothing in this chapter precludes a municipality from defeating its annexation resolution without submitting the matter to an annexation review commission and then, if petitioned by the landowners, adopting an ordinance to annex the same land. Frey v. City of Jamestown, 548 N.W.2d 784, 1996 N.D. LEXIS 157 (N.D. 1996).

Construction with Other Laws.

The two methods of annexation provided by this section and N.D.C.C. § 40-51.2-07 are separate and distinct; the first in time has priority until it is terminated. Frey v. City of Jamestown, 548 N.W.2d 784, 1996 N.D. LEXIS 157 (N.D. 1996).

40-51.2-04. Exclusion by petition of owners and electors.

Upon a petition signed by not less than three-fourths of the qualified electors and by the owners of not less than three-fourths in assessed value of the property in any territory within the limits of an incorporated municipality and contiguous or adjacent to such limits, the governing body of the municipality, by ordinance, may in its discretion, disconnect and exclude such territory from the municipality. This section, however, applies only to lands that have not been platted under either sections 40-50.1-01 through 40-50.1-17 or section 57-02-39, and where no municipal improvements have been made or constructed therein or adjacent thereto. Further, in the event any property for which exclusion is petitioned has been within the limits of an incorporated municipality for more than ten years prior thereto and, as of the time of filing the petition, is not platted and has no municipal improvements thereon, the governing body of the municipality may disconnect and exclude such territory by ordinance from the municipality.

Source: S.L. 1969, ch. 381, § 4; 1971, ch. 419, § 1; 1987, ch. 501, § 19.

DECISIONS UNDER PRIOR LAW

Analysis

Constitutionality.

Former section 40-51-02 did not delegate any legislative power to any city council or to the court, nor to any person who petitions a city to have his land disconnected, and, being a general law of uniform application, it was not unconstitutional. Enderson v. Hildenbrand, 52 N.D. 533, 204 N.W. 356, 1925 N.D. LEXIS 134 (N.D. 1925).

Discretion of Governing Body.

Where there were no improvements, within the meaning of that term as used in former section 40-51-04, upon the land, a board or council had no discretion but was required to grant the petition. Enderson v. Hildenbrand, 52 N.D. 533, 204 N.W. 356, 1925 N.D. LEXIS 134 (N.D. 1925); Sitte v. Paulson, 56 N.D. 146, 216 N.W. 344, 1927 N.D. LEXIS 84 (N.D. 1927).

Estoppel.

A city might have been estopped by its long acquiescence from questioning the validity of the method adopted by the council in attempting to segregate certain territory from its corporate limits. State ex rel. Minot v. Willis, 18 N.D. 76, 118 N.W. 820, 1908 N.D. LEXIS 106 (N.D. 1908).

Exclusion on Petition.

Where a tract of land was fully bounded on three sides, and partially on the fourth side, by lands wholly within the city limits, it was not within former section 40-51-04 providing for exclusion from municipality on petition. Lincoln Addition Improvement Co. v. Lenhart, 50 N.D. 25, 195 N.W. 14, 1922 N.D. LEXIS 88 (N.D. 1922).

Improvements.

Where no improvements had been made on unplatted farm lands except that the section line highway on the outer side of the lands and bounding the village had been graded and the village had paid one-fourth of the expense of the grading, there were no “improvements” within the meaning of that term as used in former section 40-51-04. Sitte v. Paulson, 56 N.D. 146, 216 N.W. 344, 1927 N.D. LEXIS 84 (N.D. 1927).

Judicial Review.

Under former chapter 40-51, prior to amendment, local governing bodies were clothed with exclusive power to determine questions concerning the detachment of property and no provision was made for judicial review of their determinations. Baker v. Lenhart, 50 N.D. 30, 195 N.W. 16, 1922 N.D. LEXIS 89 (N.D. 1922); State ex rel. Claver v. Broute, 50 N.D. 753, 197 N.W. 871, 1923 N.D. LEXIS 5 (N.D. 1923); State ex rel. Sitte v. Borman, 51 N.D. 38, 199 N.W. 38, 1924 N.D. LEXIS 141 (N.D. 1924).

Mandamus.

Where the findings of the city council established the conditions set forth in former section 40-51-04, and notwithstanding such findings of fact the council refused to perform its consequent duty to exclude the territory in question from the municipality, a writ of mandamus was the proper remedy for the petitioner. Great Lakes Pipe Line Co. v. Grand Forks, 142 N.W.2d 126, 1966 N.D. LEXIS 176 (N.D. 1966).

Sewer and Water Services.

Where the sewer and water services received by property were through private service lines, and such lines were constructed by the owners of the property pursuant to a contract for out-of-town connections with the city sewer system before such property was included within the city limits, such private service lines were not within the definition of municipal sewers, water mains or improvements contemplated by former section 40-51-04, even though there was a municipal water meter and water meter pit on the property. Great Lakes Pipe Line Co. v. Grand Forks, 142 N.W.2d 126, 1966 N.D. LEXIS 176 (N.D. 1966).

Vested Rights.

A creditor of a public corporation had no vested right to have the territorial limits remain unchanged as long as the corporation continued with part of the territory unimpaired. Sitte v. Paulson, 56 N.D. 146, 216 N.W. 344, 1927 N.D. LEXIS 84 (N.D. 1927).

40-51.2-05. Notice — Petition of owners and electors — Mediation.

  1. The governing body may not take final action on a petition presented by owners and qualified electors until the petitioners have given notice of presentation of the petition by one publication in the official newspaper of the city as provided by section 40-01-09 and the governing body has mailed at least fifteen days before the presentation, by certified mail, a notice of the time and place of consideration of the petition to the owner of each parcel of real property within the area described in the petition at the person’s last-known mailing address. The notice is not required to be sent to any owner of real property who signed a petition pursuant to section 40-51.2-03 or 40-51.2-04. At the same time, the governing body of the city also shall mail, by certified mail, the notice of the time and place of consideration of the petition to the governing body of each city, county, or township directly affected by the land area petitioned to be annexed.
  2. If the land area petitioned to be annexed to the city lies within the extraterritorial zoning or subdivision regulation authority of another city and written consent to annex the land area is not received from the governing body of the other city, the annexing city may either stop its pursuit of the annexation or submit the matter to a committee for mediation as provided in section 40-51.2-07.1. If mediation does not resolve the matter, the office of administrative hearings may be petitioned to hear the matter in accordance with sections 40-51.2-08, 40-51.2-09, 40-51.2-11, 40-51.2-12, 40-51.2-13, 40-51.2-14, 40-51.2-15, 40-51.2-16, and 40-51.2-17.

Source: S.L. 1969, ch. 381, § 5; 1977, ch. 375, § 9; 1985, ch. 235, § 90; 1987, ch. 502, § 1; 1997, ch. 357, § 3; 1999, ch. 50, § 58; 2011, ch. 299, § 1; 2021, ch. 306, § 1, effective August 1, 2021.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 299, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

In General.

This section is directory, not mandatory, and where the municipality, rather than the petitioners, published the required notice, this insignificant deviation from the statutory procedure did not void the annexation petition. Frey v. City of Jamestown, 548 N.W.2d 784, 1996 N.D. LEXIS 157 (N.D. 1996).

DECISIONS UNDER PRIOR LAW

Insufficient Notice.

Notice of petition to detach lands from a village was insufficient when it was published in a newspaper two miles farther from the village than the nearest publication. Sitte v. Tonne, 54 N.D. 158, 209 N.W. 658, 1926 N.D. LEXIS 127 (N.D. 1926).

40-51.2-06. Petition of owners and electors — Annexation or exclusion — Classification of annexed agricultural lands for tax purposes.

If the governing body annexes the area, it shall do so by ordinance. When a copy of the ordinance and an accurate map of the annexed area, certified by the executive officer of the city, are filed and recorded with the county recorder, the annexation becomes effective. An annexation is effective for the purpose of general taxation on and after the first day of the next January. However, the city shall continue to classify as agricultural lands for tax purposes all lands in the annexed area which were classified as agricultural lands immediately before the annexation proceedings until those lands are put to another use. If the governing body determines to exclude the area petitioned for, it may do so by ordinance adopted and recorded as in the case of annexation.

Source: S.L. 1969, ch. 381, § 6; 1971, ch. 420, § 1; 1973, ch. 337, § 1; 1975, ch. 386, § 1; 1997, ch. 357, § 4; 2001, ch. 120, § 1; 2017, ch. 411, § 5, eff for taxable years beginning after December 31, 2017.

40-51.2-07. Annexation by resolution of city.

  1. The governing body of any city may adopt a resolution to annex contiguous or adjacent territory as follows:
    1. The governing body of the city shall adopt a resolution describing the property to be annexed. Within seven days of the adoption of a resolution under this subdivision, the governing body shall mail, by certified mail, a copy of the resolution to the owner of each parcel of real property within the area to be annexed at the person’s last-known mailing address.
    2. The governing body of the city shall publish the resolution and a notice of the time and place the governing body will meet to hear and determine the sufficiency of any written protests against the proposed annexation in the official newspaper once each week for two consecutive weeks. At least fifteen days before the meeting, the governing body of the city shall mail, by certified mail, a notice to the owner of each parcel of real property within the area to be annexed at the person’s last-known mailing address. The notice must inform landowners of the resolution, the time and place of hearing, and the requirement that protests must be filed in writing. The owners of any real property within the territory proposed to be annexed may file written protests with the city auditor protesting against the proposed annexation within thirty days of the first publication of the resolution. The governing body of the city also shall mail at least seven days before the meeting, by certified mail, the notice of the time and place of the hearing to the governing body of each city, county, or township directly affected by the land area proposed to be annexed. No state-owned property may be annexed without the written consent of the state agency or department having control of the property. The governing body of the city, at its next meeting after the expiration of the time for filing the protests, shall hear and determine the sufficiency of the protests.
    3. In the absence of protests filed by the owners of more than one-fourth of the territory proposed to be annexed as of the date of the adoption of the resolution, the territory described in the resolution becomes a part of the city. When a copy of the resolution and an accurate map of the annexed area, certified by the executive officer of the city, are filed and recorded with the county recorder, the annexation becomes effective. Annexation is effective for the purpose of general taxation on and after the first day of the next January. However, the city shall continue to classify as agricultural lands for tax purposes all lands in the annexed area which were classified as agricultural lands immediately before the annexation proceedings until those lands are put to another use.
  2. If the owners of one-fourth or more of the territory proposed to be annexed protest, or if a city that has extraterritorial zoning or subdivision regulation authority over the area petitioned to be annexed protests, the city may either stop its pursuit of the annexation or submit the matter to a committee for mediation as provided in section 40-51.2-07.1.

Source: S.L. 1969, ch. 381, § 7; 1971, ch. 420, § 2; 1971, ch. 421, § 1; 1973, ch. 337, § 2; 1975, ch. 386, § 2; 1987, ch. 502, § 2; 1997, ch. 357, § 5; 2001, ch. 120, § 1; 2011, ch. 299, § 2; 2017, ch. 411, § 6, eff for taxable years beginning after December 31, 2017; 2021, ch. 306, § 2, effective August 1, 2021.

Effective Date.

The 2011 amendment of this section by section 2 of chapter 299, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

Construction with Other Laws.

The two methods of annexation provided by N.D.C.C. § 40-51.2-03 and this section are separate and distinct; the first in time has priority until it is terminated. Frey v. City of Jamestown, 548 N.W.2d 784, 1996 N.D. LEXIS 157 (N.D. 1996).

Resolution Defeated.

Nothing in this chapter precludes a municipality from defeating its annexation resolution without submitting the matter to an annexation review commission and then, if petitioned by the landowners, adopting an ordinance to annex the same land. Frey v. City of Jamestown, 548 N.W.2d 784, 1996 N.D. LEXIS 157 (N.D. 1996).

Effect of Protest.

A petition to the attorney general for the establishment of an annexation review committee as provided for in N.D.C.C. § 40-51.2-09 et seq. following protest by more than 25% of the property owners of the area sought to be annexed does not serve to terminate the original annexation proceeding and begin a new one, but rather constitutes a further step in the same set of proceedings. West Fargo v. Fargo, 251 N.W.2d 918, 1977 N.D. LEXIS 241 (N.D. 1977).

DECISIONS UNDER PRIOR LAW

Constitutionality.

The statute authorizing the annexation of territory adjacent to a city is not objectionable on the ground that it is not uniform in operation, or that it is special legislation, and the statute does not deprive the people of the annexed territory of the right of local self-government, and does not delegate legislative power. Waslien v. Hillsboro, 48 N.D. 1113, 188 N.W. 738, 1922 N.D. LEXIS 149 (N.D. 1922).

Invalid Annexation.

Where an original resolution was amended, after protest, so as to include less territory, and the territory included in the amended resolution was declared annexed without the publication of notice of the amendment or the proposed annexation, the annexation was rendered invalid. Red River Valley Brick Co. v. City of Grand Forks, 27 N.D. 8, 145 N.W. 725, 1914 N.D. LEXIS 31 (N.D. 1914).

Notice.

The purpose of giving notice so that whosoever may be affected by the proposed action may object, was satisfied by a resolution referring to the block, addition, township, county and state, the property having been previously platted and the plat duly filed and recorded. Satrom v. Grand Forks, 150 N.W.2d 700, 1967 N.D. LEXIS 131 (N.D. 1967).

Number of Protesters.

Where it was shown that on whatever theory of ownership the “property owners” were counted, those who protested were still less than three-fourths when the same theory was used in counting both owners and those protesting, then the requirements of the statute were met. Cornelius v. Fargo, 74 N.W.2d 91, 1955 N.D. LEXIS 162 (N.D. 1955).

The manner of computing the number of signers of the protesting petition is not a jurisdictional question, hence it is not the subject of review by the supreme court in a case where notice was given and a hearing was held by the annexation review commission. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

Strict Compliance.

The power of annexation conferred on cities is arbitrary and extraordinary and when such power is exercised the statute must be strictly complied with. Stern v. City of Fargo, 18 N.D. 289, 122 N.W. 403, 26 L.R.A. (n.s.) 665 (1909), distinguished, Lang v. City of Cavalier, 59 N.D. 75, 228 N.W. 819 (1930) and Schatz v. City Council, 61 N.W.2d 423, 1953 N.D. LEXIS 89 (N.D. 1953); Red River Valley Brick Co. v. City of Grand Forks, 27 N.D. 8, 145 N.W. 725, 1914 N.D. LEXIS 31 (N.D. 1914); Weeks v. Hetland, 52 N.D. 351, 202 N.W. 807, 1925 N.D. LEXIS 26 (N.D. 1925).

40-51.2-07.1. Mediation.

The mediation committee must be comprised of a person appointed by the governor, representatives of the petitioners under section 40-51.2-03 or the protesters under section 40-51.2-07, the involved cities, counties, and townships, and any other parties having an interest in the proposed annexation. The governor’s appointee shall arrange and preside over the meeting and act as mediator at the meeting. The meeting may be continued until a resolution agreeable to all parties is reached or the mediator determines that continued mediation is no longer worthwhile.

Source: S.L. 1997, ch. 357, § 6.

40-51.2-08. Petition to office of administrative hearings.

If the governing body of a city involved in the dispute is not satisfied with the result of the mediation, the governing body may petition the director of the office of administrative hearings to hear the matter. If the annexation was initiated under section 40-51.2-07, the petition must include an accurate map of the area sought to be annexed, a description of the area, and the reasons for the annexation.

Source: S.L. 1969, ch. 381, § 8; 1997, ch. 357, § 7.

40-51.2-09. Administrative law judge to be appointed — Hearing set.

Upon receipt of a petition, the director of the office of administrative hearings shall appoint an administrative law judge to hear the petition. If the annexation was initiated under section 40-51.2-07, the administrative law judge shall determine whether the annexing city has substantially complied with all of the procedural requirements in the annexation process. If substantial compliance has been met, or if the annexation was initiated under section 40-51.2-03, the administrative law judge shall designate a time and place at which the petition will be heard. The time of the hearing may not be less than thirty days after receipt of the petition.

Source: S.L. 1969, ch. 381, § 9; 1997, ch. 357, § 8.

40-51.2-10. Annexation review commission — Composition. [Repealed]

Repealed by S.L. 1997, ch. 357, § 16.

40-51.2-11. Notice required.

At the time the administrative law judge sets the time and place of hearing, the administrative law judge shall direct the governing body of the annexing city to:

  1. Publish a notice of the hearing and a copy of the petition, if the annexation was initiated under section 40-51.2-07, at least once a week for two successive weeks in the official newspaper of the city;
  2. Mail a notice of the hearing and a copy of the petition, if the annexation was initiated under section 40-51.2-07, to the owner of each parcel of real property in the area to be annexed at the person’s last-known mailing address;
  3. Serve a copy of the notice and petition upon the chairman of the governing body of the county and township, if organized, in which the territory to be annexed lies; and
  4. Serve a copy of the notice and petition upon the head of the governing body of any other city in whose extraterritorial zoning or subdivision regulation authority the land area petitioned to be annexed is located.

The hearing must be held not less than thirty days after the first publication of the notice. Proof of publication and service of the notice and petition must be filed with the administrative law judge before the time of the hearing.

Source: S.L. 1969, ch. 381, § 11; 1987, ch. 502, § 3; 1997, ch. 357, § 9.

Cross-References.

Official newspaper of city, see § 40-01-09.

DECISIONS UNDER PRIOR LAW

Scope of Notice.

A city council had no power either to enlarge or limit the notice required by former statute. State ex rel. Johnson v. Clark, 21 N.D. 517, 131 N.W. 715, 1911 N.D. LEXIS 125 (N.D. 1911).

40-51.2-12. Administrative law judge — Hearing.

At the time of the hearing, the administrative law judge shall hear all evidence with respect to the annexation and shall consider all studies, surveys, maps, data, reports, and other material prepared by any state or local governmental subdivision or planning or zoning commission. At the hearing, the governor’s appointee who mediated the meetings under section 40-51.2-07.1 shall provide information to the administrative law judge on the proposed annexation and any proposed resolutions or recommendations made by a majority of the representatives of the interested parties. Any resident of or person owning property or having any interest in the area proposed to be annexed and any elector of the annexing city, or a representative of any such person, may appear at the hearing and present evidence upon any matter to be determined by the administrative law judge. All proceedings at the hearing must be recorded but need not be transcribed unless proceedings for judicial review are initiated as provided in section 40-51.2-15.

Source: S.L. 1969, ch. 381, § 12; 1997, ch. 357, § 10.

40-51.2-13. Decision.

  1. In arriving at a decision, the administrative law judge shall consider the following factors:
    1. The present uses and planned future uses or development of the area sought to be annexed;
    2. Whether the area sought to be annexed is a part of the community of the annexing city;
    3. The educational, recreational, civic, social, religious, industrial, commercial, or city facilities and services made available by or in the annexing city to any resident, business, industry, or employee of the business or industry located in the area sought to be annexed;
    4. Whether any governmental services or facilities of the annexing city are or can be made available to the area sought to be annexed;
    5. The economic, physical, and social relationship of the inhabitants, businesses, or industries of the area sought to be annexed to the annexing city, and to the school districts and other political subdivisions affected;
    6. The economic impact of the proposed annexation on the property owners in the area of the proposed annexation, and the economic impact on the annexing city of a decision to deny the annexation;
    7. Whether the area proposed to be annexed is in the extraterritorial zoning or subdivision regulation authority of another city; and
    8. Any other factor determined to be relevant by the administrative law judge.
    1. Based upon those factors, the administrative law judge may order the annexation if the administrative law judge finds that:
      1. The area proposed to be annexed is now, or is about to become, urban in character;
      2. City government in the area proposed to be annexed is required to protect the public health, safety, and welfare; or
      3. The annexation would be in the best interest of the area proposed to be annexed.
    2. The administrative law judge may deny the annexation if it appears that annexation of all or a part of the property to a different city would better serve the interests of the residents of the property.
  2. If the administrative law judge is satisfied that the annexation should be granted, the administrative law judge shall determine the terms and conditions of the annexation and enter an order granting the petition. In all cases, the administrative law judge shall set forth in writing a decision, including findings of fact, conclusions of law, and an order. The decision must include the factors upon which the decision is based. The administrative law judge shall direct the governing body of the annexing city to mail a copy of the decision to all parties to the annexation proceedings.
  3. An order granting the petition must include in detail all the terms and conditions upon which the petition is granted and the effective date of the petition. The annexing city shall file and record the order and an accurate map of the annexed area, certified by the executive officer of the city, in the office of the recorder of the county in which the annexed territory is situated.

Source: S.L. 1969, ch. 381, § 13; 1997, ch. 357, § 11; 2001, ch. 120, § 1.

DECISIONS UNDER PRIOR LAW

Guidelines.

The guidelines for the deliberations of the annexation review commission were to be found from a construction of the former statute. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

The same guidelines that governed the action of the governing body of the city also governed the action of the annexation review commission insofar as applicable to the proceedings by the commission. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

40-51.2-14. Powers of the administrative law judge — Decision — Terms.

The administrative law judge shall enter an order setting forth what the administrative law judge deems to be fair and reasonable terms and conditions and shall direct the annexation in conformity with those terms and conditions. The administrative law judge may:

  1. Approve or disapprove, with or without amendment, wholly, partially, or conditionally the petition for annexation.
  2. Determine the metes and bounds of the territory to be annexed and may include the same area or a smaller area than that described in the petition.
  3. Require payment by the city of a sum determined by the administrative law judge payable to compensate for the value of public improvements acquired by the annexation proceedings and to require the assumption by the city of a pro rata share of any existing bonded indebtedness of any township from which territory is annexed.
  4. Require payment by the city of a sum determined by the administrative law judge payable to compensate a water district for losses resulting from the annexation in accordance with section 61-35-26.

Source: S.L. 1969, ch. 381, § 14; 1997, ch. 357, § 12.

DECISIONS UNDER PRIOR LAW

Power of Commission.

Once the annexation review commission acquired jurisdiction it had the power and authority to hear the evidence for and against the annexation and to render its decision accordingly. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

40-51.2-15. Review of determination of administrative law judge by certiorari.

Within thirty days after receipt of the administrative law judge’s order, any interested party dissatisfied with the decision may apply to the district court for a writ of certiorari. The review upon the writ may extend only to the determination of whether the administrative law judge has acted regularly and has not exceeded the administrative law judge’s jurisdiction or abused the administrative law judge’s discretion under this chapter.

Source: S.L. 1969, ch. 381, § 15; 1997, ch. 357, § 13.

DECISIONS UNDER PRIOR LAW

Analysis

Election of Remedies.

Beginning an injunction proceeding in the district court to enjoin the city from proceeding with an annexation did not constitute an election of remedies by the protesting parties whereby the protestants waived their right under law to appeal to the annexation review commission. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

Judicial Review.

No matter how erroneous the decision of the annexation review commission, even on the face of the record, including errors of law or of fact in the exercise of its authority, the reviewing court had no power to change, annul or reverse it in a civil proceeding in certiorari. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

Special Appearance by City.

A city could make a special appearance before the annexation review commission in order to object to the constitutionality of the jurisdiction of the commission, which question it was entitled to raise on appeal. City of Fargo v. Annexation Review Comm'n, 148 N.W.2d 338, 1966 N.D. LEXIS 149 (N.D. 1966).

40-51.2-16. Effective date of annexation by administrative law judge — Classification of annexed agricultural lands for tax purposes.

Territory annexed to a city pursuant to petition to the director of the office of administrative hearings is annexed as of the date of the order of the administrative law judge, except for tax purposes, and a copy of the resolution with an accurate map of the annexed area, certified by the executive officer of the city, must be filed and recorded with the county recorder. Annexation is effective for the purpose of general taxation on and after the first day of the next January. However, the city shall continue to classify as agricultural lands for tax purposes all lands in the annexed area which were classified as agricultural lands immediately before the annexation proceedings until those lands are put to another use.

Source: S.L. 1969, ch. 381, § 16; 1971, ch. 420, § 3; 1973, ch. 337, § 3; 1975, ch. 386, § 3; 1997, ch. 357, § 14; 2001, ch. 120, § 1; 2017, ch. 411, § 7, eff for taxable years beginning after December 31, 2017.

DECISIONS UNDER PRIOR LAW

Injunction.

Where a city was enjoined from exercising jurisdiction over territory annexed from a township pending appeal of the annexation, the city was not entitled to any portion of the taxes collected by the township during the pendency of the appeal even though the city may have rendered services in violation of the injunction. Barnes Township v. Fargo, 121 N.W.2d 697, 1963 N.D. LEXIS 83 (N.D. 1963).

40-51.2-17. Cost of annexation.

The costs of the annexation proceedings, and the costs for services rendered by an administrative law judge, must be paid to the office of administrative hearings by the annexing city. The costs of the annexation proceedings are the same as those allowed in any civil action.

Source: S.L. 1969, ch. 381, § 17; 1997, ch. 357, § 15.

40-51.2-18. Relation of this chapter to other laws.

The powers conferred and the limitations imposed by this chapter shall be in addition and supplemental to, and not in substitution for, powers conferred by any other law.

Source: S.L. 1969, ch. 381, § 19.

40-51.2-19. Savings clause. [Repealed]

Repealed by S.L. 1983, ch. 82, § 154.

CHAPTER 40-52 Changes in Wards

40-52-01. Petition for change in name, number, or boundaries of wards — Signatures required — Notice of meeting to hear. [Repealed]

Repealed by omission from this code.

40-52-02. Governing body may order change in wards. [Repealed]

Repealed by S.L. 1957, ch. 292, § 2.

40-52-03. Governing body of council city may change boundaries of wards — Wards not to be diminished or increased. [Repealed]

Repealed by S.L. 1957, ch. 292, § 2.

40-52-04. Changing number and boundaries of wards and precincts.

The number and boundaries of the wards and precincts in a city may be changed by an ordinance adopted by a majority vote of the members of the governing body. Such ordinance shall be introduced at a regular meeting of the board, and before final action is taken on the proposed ordinance, it shall be published in the official newspaper of the city once each week for four successive weeks. When the boundaries of wards are fixed by ordinance, the number of such wards and the boundaries thereof shall not be changed for a period of two years, except by adding thereto territory which is added to the city limits. The territory in a ward shall be contiguous and compact, and no ward having a population of less than one hundred residents shall be created. The terms “wards”and “precincts” shall have the meaning provided for in section 40-21-09.

Source: S.L. 1907, ch. 45, § 12; 1911, ch. 77, § 12; C.L. 1913, § 3782; R.C. 1943, § 40-5204; S.L. 1957, ch. 292, § 1; 1957 Supp., § 40-5204; S.L. 1967, ch. 158, § 102.

Cross-References.

Change of name of municipality, see ch. 32-28.

40-52-05. Changes to be made in papers, plats, and records of municipality.

Whenever a change in the number or boundaries of wards is made, the governing body of the municipality shall direct the municipal attorney to cause to be made all needful changes in papers, plats, and matters of record.

Source: S.L. 1887, ch. 110, § 3; R.C. 1895, § 2451; R.C. 1899, § 2451; R.C. 1905, § 2959; C.L. 1913, § 3982; R.C. 1943, § 40-5205.

40-52-06. City auditor to make changes in assessment list.

The city auditor shall make any changes in assessment lists necessitated by any change in the names, numbers, or boundaries of the wards in the municipality.

Source: S.L. 1887, ch. 110, § 4; R.C. 1895, § 2452; R.C. 1899, § 2452; R.C. 1905, § 2960; C.L. 1913, § 3983; R.C. 1943, § 40-5206.

40-52-07. Holding elections in new ward or wards.

Ten days before the regular municipal election following any change in the wards in the municipality, the governing body shall designate the proper polling place or places for the new ward or wards, appoint judges and clerks therefor, make all necessary provisions for holding the election, and designate the several officers to be chosen therefrom.

Source: S.L. 1887, ch. 110, § 5; R.C. 1895, § 2453; R.C. 1899, § 2453; R.C. 1905, § 2961; C.L. 1913, § 3984; R.C. 1943, § 40-5207.

40-52-08. Council member changing wards can continue in office.

A council member who was duly elected, but because of the change in boundaries of the ward no longer resides within the ward from which the member was elected, but is still residing within the city limits, can continue in office for the term for which the member was elected and until a successor is duly elected and qualified for the ward.

Source: S.L. 1961, ch. 283, § 1; 1991, ch. 440, § 20.

CHAPTER 40-53 Changing Names and Dissolution of Villages [Repealed]

[Repealed by S.L. 1967, ch. 323, § 285]

CHAPTER 40-53.1 Dissolution of Cities

40-53.1-01. Dissolution — Petition — Notice of election.

  1. If qualified electors of a city equal in number to one-fourth of the number of qualified electors voting at the last regular city election petition the board of county commissioners of the county wherein the city is situated to dissolve the city, the board of county commissioners shall order a special election to be held within the city on the question of dissolving the city.
  2. Notice of the election shall be published once each week for four consecutive weeks and shall state that the question of dissolving the city will be submitted to the qualified electors of the city on the designated day.

Source: S.L. 1969, ch. 382, § 1; 1985, ch. 382, § 1.

40-53.1-02. Dissolution — Ballots.

The form of the ballot shall be:

For the dissolution of (insert name of city) . Against the dissolution of (insert name of city) .

Click to view

Source: S.L. 1969, ch. 382, § 2.

40-53.1-03. Dissolution — Conduct of election.

The election shall be conducted in the same manner as a regular city election except that all election officials shall be appointed by the board of county commissioners. The election returns shall be made to the board of county commissioners and canvassed in the same manner as are general election returns.

Source: S.L. 1969, ch. 382, § 3.

Cross-References.

City elections, see ch. 40-21.

40-53.1-04. Dissolution — Vote required — Effect on debts and contracts.

If a majority of the votes cast on the question are in favor of dissolution, the county commissioners shall, by motion and proclamation, set a date upon which dissolution will become effective and the city shall be dissolved, provided provision has been made for payment of its current indebtedness, contracts, and obligations, and for levying the requisite tax to do so. The current indebtedness, contracts, and obligations do not include funded or bonded indebtedness nor any contract whose termination date is more than one year beyond the date the election was held.

Source: S.L. 1969, ch. 382, § 4; 1997, ch. 108, § 29.

40-53.1-05. Disposition of records after dissolution — Pending business.

All public records of the dissolved city shall be deposited with the county auditor.

Source: S.L. 1969, ch. 382, § 5; 1973, ch. 80, § 17.

40-53.1-06. Notice of dissolution — Publication.

Whenever a city is dissolved, the county auditor shall publish a notice once a week for four consecutive weeks that the city is dissolved. A certified copy of the notice shall be sent to the secretary of state.

Source: S.L. 1969, ch. 382, § 6.

40-53.1-07. Dissolution — Care of property — Manager — Disposition of funds.

If a city is dissolved, the board of county commissioners shall assume control of all property belonging to the dissolved city and shall employ a qualified person to manage and operate the property and to collect all charges due from the operation of such property or dispose of the property in accordance with chapter 11-27. The person employed shall execute a bond to the county in an amount determined by the board of county commissioners, conditioned that that person will faithfully perform that person’s duties and will promptly pay all money that person receives to the county treasurer monthly on the first day of each month. The bond shall be executed by the person employed and a surety company authorized to do business in the state. The premium on the bond shall be paid by the board of county commissioners from city funds, if any, and if none, from county funds.

Source: S.L. 1969, ch. 382, § 7; 2015, ch. 281, § 2, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 281, S.L. 2015 will become effective August 1, 2015.

40-53.1-08. Income from property of a dissolved municipality.

Money received from the operation of property of a dissolved city shall be used in the following priority:

  1. To pay employees engaged in the operation, maintenance, and protection of the property.
  2. To pay the interest on the bonded indebtedness of the municipality.
  3. To purchase or redeem bonded indebtedness of the municipality.
  4. After all bonded indebtedness has been paid, to the general fund of the county.

Source: S.L. 1969, ch. 382, § 8.

40-53.1-09. Dissolution — Insufficient income to pay obligations — Levy of tax — Duty vested in board of county commissioners.

If insufficient money is received from the operation of the property of the dissolved city to pay the obligations in the order designated, the board of county commissioners shall levy a tax on all taxable property within the boundary of the city at the time of its dissolution. This tax shall be sufficient to pay the obligations incurred in the operation of the property of the city and to comply with the terms and conditions of the evidences of the bonded indebtedness. The board of county commissioners shall, without charge, perform the duties of the governing body of the dissolved city to satisfy the terms of the bonds, obligations, or contracts of the dissolved city.

Source: S.L. 1969, ch. 382, § 9.

40-53.1-10. Dissolution by district court — Application.

Any city not subject to dissolution under existing laws may be dissolved by the district court upon presentation of an application by the state’s attorney of the county. The application shall contain:

  1. The name of the city.
  2. The date of incorporation.
  3. Boundaries.
  4. Original plat and additions thereto.
  5. Names of the officers.
  6. Assets.
  7. Debts.
  8. A general statement of the reasons for dissolution.

Source: S.L. 1969, ch. 382, § 10.

40-53.1-11. Filing application — Order.

If the court is satisfied the petition contains the required information, it shall order the petition be filed, and the clerk of the district court shall give notice thereof by publication once each week for four consecutive weeks.

Source: S.L. 1969, ch. 382, § 11.

40-53.1-12. Objections.

Any time during the period of publication and within a period of thirty days after the last publication, any person may file objections to the application.

Source: S.L. 1969, ch. 382, § 12.

40-53.1-13. Hearing on application — Order of dissolution.

After the period of publication, but not less than thirty days thereafter, the court, upon five days’ notice to any person who has filed objections to the application, or without further notice if no objections have been filed, shall hear and determine the application. If the court finds the city should be dissolved, it shall dissolve the same upon such terms or conditions as justice may require, vacate the boundaries, order the sale of assets and the payment of debts, and order any surplus paid into the general fund of the county treasury.

Source: S.L. 1969, ch. 382, § 13.

40-53.1-14. Judgment roll — Right of appeal.

The petition, notice and proof of service thereof, objections, orders of the court, and the judgment shall constitute the judgment roll, and an appeal may be taken from the judgment in the same manner as in a civil action.

Source: S.L. 1969, ch. 382, § 14.

CHAPTER 40-53.2 Consolidation of Cities

40-53.2-01. Legislative intent on city consolidation.

The legislative assembly recognizes that a viable government capable of providing essential services is necessary to the general welfare of the citizens of every city in this state. The legislative assembly further recognizes that some cities have become and will continue to become incapable of providing adequate services to their citizens and that a process is necessary to allow these dysfunctional cities to consolidate with other nearby cities in order to better serve the people of this state.

Source: S.L. 1981, ch. 424, § 1.

40-53.2-02. Consolidation — Resolution or petition — Election.

The governing body of any city may, by resolution, or shall, upon petition by ten percent of the number of qualified electors of the city who voted for governor at the last general election at which a governor was elected, place on the ballot at the next general election to be held in that city the following question:

Shall the city governing body appoint a committee from its membership to meet with members of the governing board of the city of , as a municipal consolidation review commission, to draft a proposal for consolidating the city of with the city of ?

Click to view

Source: S.L. 1981, ch. 424, § 2; 1985, ch. 235, § 92.

40-53.2-03. Municipal consolidation review commission.

Upon passage by a simple majority of the votes cast on the question in each of the cities seeking consolidation in the manner provided by section 40-53.2-02, the governing body of each of the cities seeking consolidation shall appoint an equal number of the members of each governing body who shall convene as the municipal consolidation review commission to make a finding as to whether or not there is sufficient reason to further consider consolidation of the cities seeking consolidation. If the commission finds insufficient reason, no further consideration shall be given to the matter of consolidation of the cities. If the commission finds sufficient reason for consolidation, it shall develop a recommended plan of consolidation, holding such hearings on the plan as it deems appropriate. The commission shall submit its recommended plan to the voters of both cities. Upon receiving a majority affirmative vote of the electors of each city, voting on the question at a special election or any regular election, the review commission’s recommended plan shall become effective on July first of the next year.

Source: S.L. 1981, ch. 424, § 3; 1997, ch. 108, § 30.

CHAPTER 40-54 Gravel Surfacing City Streets

40-54-01. Bids — Advertising — Requirements.

On or before the fifteenth day of March in each year, the city auditor of each city within the state may at the discretion of the governing board advertise in the official newspaper once each week for two consecutive weeks for bids for the furnishing of gravel in place for gravel surfacing of highways within the city, upon a cubic yard [0.76 cubic meter] basis. The bids must be made in accordance with such specifications as to type, grade, and quality of material as specified by the city engineer and approved by the governing board and must provide for the delivery of such gravel along such streets of the city as may thereafter be designated, in such manner as may be designated in the specifications. The notice must specify that payment for such gravel will be in cash or by special assessment warrants issued against the graveling special assessment fund created by this chapter and each bid must specify the lowest rate of interest that the bidder will accept upon such warrants and that payment for such gravel will be accepted by the bidder in the manner herein provided. Each bid must be accompanied by a separate envelope containing a certified or cashier’s check in such amount as may be fixed by the governing board and the award of the contract shall be made only to such person who shall furnish good and sufficient bond for the performance thereof, in such amount as shall be fixed by the governing board at the time of calling for bids.

Source: S.L. 1945, ch. 258, § 1; 1953, ch. 262, § 1; R.C. 1943, 1957 Supp., § 40-5401; S.L. 1979, ch. 91, § 9; 1981, ch. 142, § 6.

Cross-References.

Official newspaper of city, see § 40-01-09.

Residential paving projects, see ch. 40-56.

40-54-02. Awarding contract — Failure to advertise for bids.

If bids have been called for at the first regular meeting of the governing body in the month of April in each year, the bids shall be opened and the contract for the furnishing of gravel shall be awarded to the lowest responsible bidder who has complied with the requirements of this chapter. If the city auditor shall have failed to advertise for bids before the fifteenth day of March or if the governing body shall have failed to award the contract at a meeting in April, such advertisement for bids and such award may be made subsequently upon the same basis as if made at the time provided in this chapter.

Source: S.L. 1945, ch. 258, § 2; R.C. 1943, 1957 Supp., § 40-5402.

40-54-03. Hearing upon petition — Notice — Decision.

Upon petition of the owners of not less than fifty percent of the property, measured by front feet, on both sides of any street or portion thereof, not less than one block in length, for gravel surfacing of such street or portion thereof, the governing board may give notice of such petition and of a time and place for hearing thereon, by publication once in each week for two successive weeks prior to such hearing, the first publication to be not less than ten days before such hearing. At the time and place of such hearing, the governing board shall consider and determine the desirability and necessity of the graveling of such street or portion thereof, the ownership and use of the property adjoining said street, the probability or lack of probability of special assessments for such graveling being paid, and the necessity, from the standpoint of the municipality, of such graveling being undertaken, and shall thereupon determine whether or not such project shall be undertaken, and its decision thereon shall be final.

Source: S.L. 1945, ch. 258, § 3; R.C. 1943, 1957 Supp., § 40-5403.

40-54-04. Notification of award of contract — Contractor’s duty — Project number.

If the governing board shall determine that such graveling project should be undertaken, it shall direct its street department to prepare the surface of such street or portion thereof for such gravel surfacing, and the city engineer shall notify and direct the holder of the contract for the furnishing of gravel for such year to deliver in place sufficient gravel to accomplish the gravel surfacing of said street, specifying the number of yards [0.76 cubic meter], including intersections if so determined by the governing board, within a reasonable time to be specified in such notice. The holder of such contract shall within such time deliver said gravel in accordance with such instructions and the street department shall spread said gravel and complete the necessary work for the gravel surfacing of said street or portion thereof. Each such project shall be designated as a particular graveling district by number.

Source: S.L. 1945, ch. 258, § 4; R.C. 1943, 1957 Supp., § 40-5404.

40-54-05. Assessments.

The entire cost of furnishing gravel, together with the cost of the legal notices and engineering services involved, and including the cost of gravel used at street intersections, shall thereupon be assessed against the property adjoining such street upon a front foot basis by the city engineer. The city engineer shall return the assessments of such cost and file the same in the office of the city auditor, who shall cause such assessment, together with a notice of the time and place when and where the governing body will meet to consider the approval thereof, to be published in one issue of the official newspaper at least ten days prior to the meeting of the governing body at which the approval of such assessment will be considered. Upon such hearing, the decision of the board shall be final.

Source: S.L. 1945, ch. 258, § 5; R.C. 1943, 1957 Supp., § 40-5405.

40-54-06. City auditor to deliver duplicate assessment rolls — Collection of assessments.

On or before the first day of September of each year, the city auditor shall deliver to the county auditor a duplicate of all assessment rolls containing assessments made under the provisions of this chapter, and the county auditor shall extend the assessments in the proper column against the property assessed. Such assessments shall be collected and the payment thereof enforced as county and state taxes are collected and enforced and such assessments shall constitute a lien against the property designated in the same manner and to the same extent as other special assessments. When collected, the assessments shall be paid over by the county treasurer to the city auditor in the same manner as other taxes.

Source: S.L. 1945, ch. 258, § 6; R.C. 1943, 1957 Supp., § 40-5406.

40-54-07. City auditor to keep gravel assessment book.

The city auditor shall keep in the city auditor’s office a book called “gravel assessment book” and shall enter therein the costs certified by the city engineer and governing body as an assessment against the lots or parcels of land adjoining any such graveling project constructed under the provisions of this chapter and the names of the owners of such lots or parcels of land, if the same are known to the city auditor.

Source: S.L. 1945, ch. 258, § 7; R.C. 1943, 1957 Supp., § 40-5407.

40-54-08. Payment of assessments — Interest.

All assessments for gravel projects shall be payable in equal annual amounts extending over such period as may be determined by the governing body, not exceeding three years, and shall bear interest at an annual rate of not more than two percentage points above the average net annual interest rate on any warrants for the total amount of the assessments remaining unpaid. Anyone may pay such assessments in one single payment, and anyone who has paid any one or more installments may pay the balance in one payment. When the assessment against any lot or tract has been paid, the lien against the lot or tract shall be canceled and annulled.

Source: S.L. 1945, ch. 258, § 8; R.C. 1943, 1957 Supp., § 40-5408; S.L. 1981, ch. 416, § 4.

40-54-09. Separate fund for project — Warrants.

All moneys received by a municipality from assessments for any graveling project shall be kept in a separate fund designated as “graveling district number _______________________________________ ”. Warrants shall be drawn on such fund for the payment of the cost of such gravel project.

Source: S.L. 1945, ch. 258, § 9; R.C. 1943, 1957 Supp., § 40-5409.

40-54-10. Gravel assessment warrants — How paid — Interest — Contents.

All gravel assessment warrants shall be payable as specified and in such amounts as in the judgment of the governing body will be provided by such special assessments. The warrants shall bear interest at a rate or rates and be sold at a price resulting in average net interest cost not exceeding twelve percent per annum if sold privately. There is no interest rate ceiling on warrants sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. The warrants may have coupons attached representing each interest payment. The warrants shall state on their face the purpose for which they were issued, and from what fund they are payable, and shall be signed by the executive officer and countersigned by the city auditor under the seal of the municipality. The warrants shall be used in making payment on the contract for the furnishing of gravel, or may be sold for cash at not less than ninety-eight percent of the par value thereof, and proceeds credited to the special fund and used to pay for the gravel project.

Source: S.L. 1945, ch. 258, § 10; 1953, ch. 262, § 2; R.C. 1943, 1957 Supp., § 40-5410; S.L. 1971, ch. 249, § 21; 1973, ch. 338, § 1; 1981, ch. 269, § 19.

40-54-11. Warrants payable from special graveling fund.

The city auditor shall pay such special gravel assessment warrants and interest coupons as they mature and are presented for payment out of the graveling special fund, and shall cancel the same when paid, and the provisions of section 40-26-08 shall apply in the case of deficiencies in such fund.

Source: S.L. 1945, ch. 258, § 11; 1953, ch. 262, § 3; R.C. 1943, 1957 Supp., § 40-5411.

40-54-12. Optional method of graveling streets.

It is the intent of this chapter to provide an optional and discretionary method of graveling streets and levying special assessments therefor in addition to those provided by existing statutes, and in all matters not specifically provided for in this chapter, the provisions of chapters 40-23, 40-24, and 40-25 shall govern.

Source: S.L. 1945, ch. 258, § 12; R.C. 1943, 1957 Supp., § 40-5412.

CHAPTER 40-55 Public Recreation System

40-55-01. Definitions.

  1. “Governing body” as used in this chapter means city council, board of trustees or commissioners of any city or township, the board of county commissioners on behalf of any unorganized township, the trustees of any school district, and the commissioners of any park district in North Dakota.
  2. “Municipality” as used in this chapter refers to and means any city or organized or unorganized township in North Dakota.

Source: S.L. 1947, ch. 283, § 1; R.C. 1943, 1957 Supp., § 40-5501; S.L. 1967, ch. 323, § 225; 1993, ch. 406, § 1.

40-55-02. Municipality, school, and park district recreation centers — Appropriation.

The governing body of any municipality, park district, or school district may dedicate and set apart for use as playgrounds, recreation centers, and other recreation or character-building purposes and community centers, lands or buildings, or both, owned or leased by such municipality, school district, or park district, and not dedicated or devoted to another, inconsistent public use. A municipality, school district, or park district, in such manner as may now or hereafter be authorized or provided by law for the acquisition of lands or buildings for public purposes by such municipality, school district, or park district, may acquire or lease lands or buildings, or both, within or beyond the corporate limits of such municipality, school district, or park district, for community centers, playgrounds, recreation centers, or other recreation and character-building purposes. When the governing body of such municipality, school district, or park district, so dedicates, sets apart, acquires, or leases lands or buildings for such purposes, on its own initiative, it may provide for their conduct, equipment, and maintenance according to the provisions of this chapter by making an appropriation from the general municipal, school district, or park district funds.

Source: S.L. 1947, ch. 283, § 2; R.C. 1943, 1957 Supp., § 40-5502.

40-55-03. Providing and maintaining recreational facilities — May be vested in an existing body — Powers of body.

The governing body of any municipality, school district, or park district may establish a system of public recreation and it may vest the power to provide, maintain, and conduct playgrounds, community centers, recreation centers, and other recreation and character-building areas, structures, facilities, and activities in any existing municipal body, in the school district, in the park district, or in a recreation board or commission, as the governing body may determine. Any board, commission, or other body so designated shall have the authority to maintain and conduct community centers, playgrounds, recreation centers, and other recreation and character-building areas, structures, facilities, and activities. For the purpose of carrying out the provisions of this chapter, it may employ play leaders, playground and recreation center directors, supervisors, recreation superintendents, and such other employees as it deems proper.

Source: S.L. 1947, ch. 283, § 3; R.C. 1943, 1957 Supp., § 40-5503.

40-55-04. Municipalities, school, or park districts may provide and establish joint recreation centers and facilities.

Any two or more municipalities, school districts, or park districts, jointly, may provide, establish, maintain, and conduct a public recreation system, and acquire property therefor, and establish and maintain community centers, playgrounds, recreation centers, and other recreational and character building areas, structures, facilities, and activities.

Source: S.L. 1947, ch. 283, § 4; R.C. 1943, 1957 Supp., § 40-5504.

40-55-05. Bonds may be issued providing for such facilities.

The governing body of any municipality, school district, or park district, pursuant to law, may provide that the bonds of such municipality, school district, or park district may be issued in the manner provided by law for the issuance of bonds for other purposes, for the purpose of acquiring lands or buildings for community centers, playgrounds, recreation centers, and other recreational and character building purposes and for the equipment thereof.

Source: S.L. 1947, ch. 283, § 5; R.C. 1943, 1957 Supp., § 40-5505.

40-55-06. Establishing recreation board or commission — Members — Terms — Vacancy — Compensation.

If the governing body of any municipality, school district, or park district determines that a public recreation system shall be established, the governing body shall by resolution or ordinance establish in such municipality, school district, or park district a recreation board or commission that shall possess all the powers and be subject to all the responsibilities of the local authorities under this chapter. The members of the recreation board or commission shall be appointed by the mayor or presiding officer of the municipality, park district, or school district that establishes the recreation system. The recreation board or commission when established shall consist of at least five but not more than nine persons, as the governing body may determine, to be appointed by the mayor or presiding officer of the municipality, park district, or school district, with the consent of the governing body. One member of the recreation board or commission must be chosen from the legal membership of the park district board, or board of park commissioners of the area involved, one member must be chosen from the membership of the governing body of the municipality, and one member must be chosen from the legal membership of the school district board or boards involved. The remaining members must be chosen at large from the largest geographic area represented by the municipality, park district, or school district involved. The term of office of all members of such recreation board or commission shall be for three years except that the members of such recreation board or commission first appointed shall be for staggered terms so that the terms of at least one but not more than three members expire annually. If a vacancy occurs during the term of office of any member, the mayor or presiding officer of the municipality, school district, or park district involved, with the consent of the governing body, shall appoint a successor to serve for the unexpired term. Membership on the recreation board or commission shall be without compensation or remuneration.

Source: S.L. 1947, ch. 283, § 6; R.C. 1943, 1957 Supp., § 40-5506; S.L. 1979, ch. 452, § 1.

Cross-References.

City employees’ pensions, credit for service as employee of recreation commission, see § 40-46-09.1.

40-55-07. Governing body, board, or commission may accept grants of real estate and money — Conditions.

The governing body of a municipality, school district, or park district, recreation board or commission, or other authority in which is vested the power to provide, establish, maintain, and conduct such supervised recreation system may accept any grant or devise of real estate or any gift or bequest of money or other personal property or any donation to be applied, principal or income, for either temporary or permanent use for playgrounds or recreation purposes, but if the acceptance thereof for such purposes will subject such municipality, school district, or park district, to additional expense for improvement, maintenance, or removal, the acceptance of any grant or devise of real estate shall always be subject to the approval of the governing body of such municipality, school district, or park district. Money received for such purpose, unless otherwise provided by the terms of the gift or bequest shall be deposited with the treasurer of the governing body to the account of the recreation board or commission or other body having charge of such work, and the same may be withdrawn and paid out by such body in the same manner as money appropriated for recreation purposes.

Source: S.L. 1947, ch. 283, § 7; R.C. 1943, 1957 Supp., § 40-5507; S.L. 1979, ch. 452, § 2.

40-55-08. Election to establish recreation system — Funding.

  1. The governing body of any city, school district, or park district to which this chapter is applicable, may and upon receipt of a petition signed by at least ten qualified electors but not less than five percent of those qualified electors who voted at the last general election of the city, school district, or park district, shall submit to the qualified electors the question of the establishment, maintenance, and conduct of a public recreation system, at the next general election or special municipal election if the question to be placed on the ballot is filed thirty days prior to the date of the election.
  2. If the electors of the city have approved a public recreation system, the governing body of the city may provide funding for the recreation system from revenues derived from its general fund levy authority in an amount not exceeding the revenue derived from a levy of two and five-tenths mills per dollar of taxable valuation of property within the city.
  3. A school district or park district may provide funding from revenues derived from its general fund levy authority for the establishment, maintenance, and conduct of a public recreation system.

Source: S.L. 1947, ch. 283, § 8; R.C. 1943, 1957 Supp., § 40-5508; S.L. 1983, ch. 593, § 27; 1983, ch. 608, § 12; 1985, ch. 235, § 93; 1987, ch. 232, § 3; 2013, ch. 13, § 45; 2015, ch. 137, § 18, effective July 1, 2015; 2015, ch. 439, § 54, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 18 of chapter 137, S.L. 2015 became effective July 1, 2015.

The 2015 amendment of this section by section 54 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

The 2013 amendment of this section by section 45 of chapter 13, S.L. 2013 became effective January 1, 2013.

Note.

The 2015 amendment to this section by section 18, of chapter 137, S.L. 2015, was to remove the expiration date of the section.

Section 40-55-08 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 18 of Chapter 137, Session Laws 2015, Senate Bill 2031; and Section 54 of Chapter 439, Session Laws 2015, Senate Bill 2144.

Section 67 of chapter 13, S.L. 2013 provides, in part: “EFFECTIVE DATE — EXPIRATION DATE. Sections 21, 27, 28, 42, 45 through 50, 52, and 53 of this Act are effective for the first two taxable years beginning after December 31, 2012, and are thereafter ineffective.”

40-55-09. Voter-approved levy authority for city public recreation system.

  1. The governing body of a city may, and upon receipt of a petition signed by at least ten qualified electors but not less than five percent of those qualified electors who voted at the last general election of the city shall, submit to the qualified electors the question of approval or disapproval of voter-approved levy authority for establishment, maintenance, and conduct of a public recreation system at the next general election or special municipal election if the question to be placed on the ballot is filed thirty days prior to the date of the election. The ballot measure question to approve a levy under this section must be stated to ask if the elector approves a voter-approved tax by the city for a public recreation system in a stated number of mills, not exceeding six mills. If approved by a majority of city electors voting on the question, the city may levy an additional tax within the limitation of subsection 13 of section 57-15-10. After January 1, 2015, approval or reauthorization by electors of voter-approved levy authority under this section may not be effective for more than ten taxable years. Any voter-approved levy under this section or section 40-55-08 approved by the electors of a city before January 1, 2015, remains effective for ten taxable years or the period of time for which it was approved by the electors after it was approved, whichever is less, under the provisions of law in effect at the time it was approved. The governing body of the city shall discontinue the levy for public recreation purposes if the qualified voters, at a regular or special election, by a majority vote on the proposition, decide to discontinue the levy. A vote of the qualified electors is not required to discontinue the levy under this section if the levy authority is no longer required as a result of a merger between a park district and a city public recreation system.
  2. A vote that occurred pursuant to subsection 1 before a city public recreation system and a park district merged pursuant to subsection 2 of section 57-15-12 is no longer valid to authorize levying mills for a city public recreation system.

Source: S.L. 1947, ch. 283, § 9; R.C. 1943, 1957 Supp., § 40-5509; S.L. 1967, ch. 339, § 1; 1981, ch. 425, § 1; 1983, ch. 593, § 28; 1983, ch. 608, § 13; 1987, ch. 232, § 4; 2001, ch. 510, § 4; 2013, ch. 13, § 46; 2015, ch. 137, § 19, effective July 1, 2015; 2015, ch. 439, § 55, effective January 1, 2015; 2019, ch. 480, § 1, eff for taxable years beginning after December 31, 2018.

Effective Date.

The 2015 amendment of this section by section 19 of chapter 137, S.L. 2015 became effective July 1, 2015.

The 2015 amendment of this section by section 55 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

The 2013 amendment of this section by section 46 of chapter 13, S.L. 2013 became effective January 1, 2013.

Note.

Section 40-55-09 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 55 of Chapter 439, Session Laws 2015, Senate Bill 2144; and Section 19 of Chapter 137, Session Laws 2015, Senate Bill 2031.

Section 67 of chapter 13, S.L. 2013 provides, in part: “EFFECTIVE DATE — EXPIRATION DATE. Sections 21, 27, 28, 42, 45 through 50, 52, and 53 of this Act are effective for the first two taxable years beginning after December 31, 2012, and are thereafter ineffective.”

40-55-10. Public recreation under this chapter deemed governmental subdivision function.

The provision, conduct, operation, and maintenance of a system of public recreation under the provisions of this chapter shall be a governmental function of municipalities, school districts, or park districts.

Source: S.L. 1947, ch. 283, § 10; R.C. 1943, 1957 Supp., § 40-5510.

40-55-11. Recreation centers or systems may be established as memorials.

The community centers, playgrounds, recreational centers and systems, or any recreational or character-building facility provided for herein may be erected or established as memorials in commemoration of the men and women of the locality who lost their lives in the service of their country during World War II and in gratitude to all who served in the armed forces. In such cases, the names of those so remembered shall be preserved in some manner in connection with the memorial.

Source: S.L. 1947, ch. 283, § 11; R.C. 1943, 1957 Supp., § 40-5511.

CHAPTER 40-56 Residential Paving Projects

40-56-01. Definitions.

As used in this chapter, unless the context or subject matter otherwise requires:

  1. “Block of pavement” means the length of any street between two intersecting streets.
  2. “Residential block” means any block in which sixty percent or more of the property abutting the street shall be residential property, such percentage to be computed by dividing the total front feet of residential property on both sides of the street by the total front feet of both sides of the street in said block.
  3. “Residential paving project” means any paving project involving the pavement of any street or streets when seventy-five percent or more of the block of paving therein shall be residential block.
  4. “Residential property” means and includes property actually used for residential purposes, all schools, churches, apartments, and the yards appurtenant thereto, vacant or unoccupied lots, and all other lots not actually used for or occupied by business or commercial structures or businesses.

Source: S.L. 1949, ch. 265, § 1; R.C. 1943, 1957 Supp., § 40-5601.

Cross-References.

Gravel surfacing of city streets, see ch. 40-54.

Collateral References.

What property “abuts” on improvements so as to be subject to assessment, 97 A.L.R.2d 1079.

40-56-02. Establishment of standards of paving.

The governing body of any city may, by ordinance, establish standards of paving for residential areas which standards shall be uniform throughout the entire city, and said ordinance may be amended or repealed in the same manner as other ordinances of the city.

Source: S.L. 1949, ch. 265, § 2; 1953, ch. 263, § 1; R.C. 1943, 1957 Supp., § 40-5602.

40-56-03. City may pay portion of cost.

When any city has, by ordinance, established standards of paving for residential areas, the city as a whole, by action of its governing body, may pay not to exceed twenty percent of the cost of the paving, and if because of heavy traffic upon such street or for other valid reason, the governing board determines that the established standards should be exceeded in any portion of a residential paving project such percentage of the excess cost of paving as may be determined by action of the governing body shall be borne by the city as a whole.

Source: S.L. 1949, ch. 265, § 3; 1953, ch. 263, § 2; R.C. 1943, 1957 Supp., § 40-5603.

40-56-04. Protests to bar improvements.

If the city’s total share of the costs equals or exceeds fifty percent of the entire cost of the project, the governing body may initiate, carry out, and construct the project, and special assessments may be levied against the benefited property in the manner provided by law, unless within thirty days after the first publication of the resolution declaring the work to be necessary, the owners of seventy-five percent or more, by area, of the property liable to be specially assessed for the improvement, shall file written protest against said improvement with the city auditor.

Source: S.L. 1949, ch. 265, § 4; R.C. 1943, 1957 Supp., § 40-5604.

40-56-05. Special assessment procedure to be followed.

The procedure set forth by chapters 40-22, 40-23, 40-24, 40-25, 40-26, 40-27, and 40-28 shall be followed in all proceedings for the initiating, advertising, and contracting for paving improvements under the provisions of this chapter, for levying special assessments against benefited property, and for paying the city’s share of such special assessments.

Source: S.L. 1949, ch. 265, § 5; R.C. 1943, 1957 Supp., § 40-5605.

CHAPTER 40-57 Municipal Industrial Development Act

40-57-01. Short title.

This chapter may be cited as the Municipal Industrial Development Act of 1955.

Source: S.L. 1955, ch. 280, § 1; R.C. 1943, 1957 Supp., § 40-5701.

Cross-References.

Parking facilities, funding under this chapter, see 40-60-02.

40-57-02. Definitions.

As used in this chapter, unless a different meaning clearly appears from the context:

  1. “Municipality” means counties as well as municipalities of the types listed in subsection 4 of section 40-01-01 and, in the case of parking projects, municipal parking authorities created pursuant to section 40-61-02 and the public finance authority or any successor in interest to the public finance authority for the purpose of issuing revenue bonds under this chapter. In acting as a municipality under this chapter, the public finance authority or its successor in interest shall follow the provisions of this chapter to the extent applicable or practicable but it need not comply with the notice and hearing provisions contained in sections 40-57-04 and 40-57-04.1 or the provisions of section 40-57-10. In the event of a conflict between the provisions of this chapter and chapter 6-09.4, the provisions of chapter 6-09.4 govern.
  2. “Project” means any real property, buildings, and improvements on real property, including water and sewer lines and other underground infrastructure, and the buildings on the real property, and any equipment located on the real property or in the buildings, or elsewhere, or personal property, including working capital, which is used or useful in connection with a revenue-producing enterprise, or any combination of two or more revenue-producing enterprises, engaged or to be engaged in:
    1. Assembling, fabricating, manufacturing, mixing, or processing of any agricultural, mineral, or manufactured products, or any combination thereof.
    2. Storing, warehousing, distributing, or selling any products of agriculture, mining, or manufacture.
    3. Providing child care facilities or hospital, nursing home, or other health care facilities and service.
    4. Improvements or equipment used or to be used for the abatement or control of environmental pollution in connection with any new or existing revenue-producing enterprise.
    5. Public career and technical education.
    6. Any other industry or business not prohibited by the constitution or laws of the state of North Dakota.
  3. “Revenue agreement” means a written agreement between a municipality and a contracting party with respect to a project, whereby the contracting party agrees to pay to the municipality or its order amounts sufficient at all times to pay when due the principal of, premium, if any, and interest on all bonds issued by the municipality with respect to that project. A revenue agreement may be in the form of a lease, mortgage, direct or installment sale contract, loan agreement, take-or-pay or similar agreement, and be secured in a manner the parties agree to or be unsecured.

In no event, however, does the term “project” include those undertakings defined in chapter 40-35, with the exception of projects referred to in this subsection.

Source: S.L. 1955, ch. 280, § 2; R.C. 1943, 1957 Supp., § 40-5702; S.L. 1961, ch. 284, § 1; 1965, ch. 294, § 1; 1969, ch. 383, § 1; 1973, ch. 339, § 1; 1973, ch. 340, § 1; 1975, ch. 387, § 2; 1977, ch. 390, § 1; 2003, ch. 138, § 82; 2003, ch. 349, § 1; 2005, ch. 90, § 7; 2009, ch. 352, § 1; 2013, ch. 314, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 314, S.L. 2013 became effective August 1, 2013.

The 2009 amendment of this section by section 1 of chapter 352, S.L. 2009 became effective August 1, 2009.

The 2005 amendment of this section by section 7 of chapter 90, S.L. 2005 became effective August 1, 2005.

DECISIONS UNDER PRIOR LAW

Sugar Beet Plant.

Where a city sought to build and lease a sugar beet processing plant, “project” as used in this section included the land, buildings, major items of equipment, and items having a fixed foundation, but did not include movable equipment even though necessary to and used exclusively for the processing of sugar beets. Gripentrog v. Wahpeton, 126 N.W.2d 230, 1964 N.D. LEXIS 83 (N.D. 1964).

40-57-03. Powers of municipality.

Any municipality, in addition to the powers prescribed elsewhere by the laws of this state, shall have the power to:

  1. Acquire whether by purchase, lease, or gift, from any source whatsoever, any real property, buildings, improvements on real property or buildings, including easements, profits, rights in land and water rights deemed necessary in connection therewith, and to construct, reconstruct, improve, better, or extend to real property, buildings, and improvements on real property and buildings of any project which shall be located within this state; provided, that the property acquired for the project shall be located wholly within the boundaries of the municipality acquiring it unless a contract or agreement between that municipality and any other municipality in which part or all of the property is located is entered into as authorized by subsection 8.
  2. Issue revenue bonds, in anticipation of the collection of revenues of the project, to finance, in whole or in part, the cost of the project, whether then in existence or not.
  3. Lease projects to any industrial or commercial enterprise or nonprofit corporation or to any school district for career and technical education purposes, in such manner that rents to be charged for the use of such projects shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of interest upon all bonds issued hereunder, to create a sinking fund to pay the principal of such bonds when due, and to provide for the operation, maintenance, insurance on, and depreciation of such projects, and any taxes thereon.
  4. With respect to any project, enter into revenue agreements providing for the municipality to loan the proceeds derived from the issuance of bonds pursuant to this chapter to the contracting party to be used to pay costs of the project and providing for the repayment of the loan by the contracting party, and which may provide for such loans or bonds to be secured by a mortgage on and security in the project or such other security as may be determined by the municipality, whether delivered or granted to the municipality, the holder or holders of said bonds, a trustee therefor or otherwise.
  5. Pledge to the punctual payment of said bonds and the interest thereof, all or any part of the revenues of such project, including the revenues of projects which shall be acquired or constructed subsequent to the issuance of such bonds, as well as revenues of projects existing when such bonds were issued.
  6. Mortgage or otherwise encumber said projects in favor of the holder, or holders, of said revenue bonds, or a trustee therefor; provided, that in creating any such mortgages or encumbrances, a municipality shall not have the power to obligate itself except with respect to the project.
  7. Make all contracts, execute all instruments, and do all things necessary or convenient in the exercise of the powers herein granted, or in the performance of its covenants or duties, or in order to secure the payments of its bonds.
  8. Enter into and perform such contracts and agreements with other municipalities, political subdivisions, and state agencies, authorities, and institutions as the respective governing bodies of the same may deem proper and feasible for or concerning the planning, construction, lease, or other acquisition, and the financing of such facilities, and the maintenance thereof. Any such municipalities so contracting with each other may also provide in their contract or agreement for a board, commission, or such other body as their governing bodies may deem proper for the supervision and general management of the facilities of the project.
  9. Accept from any authorized agency of the federal government loans or grants for the planning, construction, acquisition, leasing, or other provision of any project, and to enter into agreements with such agency respecting such loans or grants.
  10. Sell and convey all properties acquired in connection with such projects, including without limitation the sale and conveyance thereof subject to such mortgage as herein provided, and the sale and conveyance thereof to the lessee under an option granted in the lease of the project, for such price and at such time as the governing body of the municipality may determine; provided, however, that no sale or conveyance of such properties shall ever be made in such manner as to impair the rights or interests of the holder, or holders, of any bonds issued under the authority of this chapter.
  11. Issue revenue bonds to refund, in whole or in part, bonds previously issued under this chapter.
  12. If the project financed by the municipality consists of the construction, reconstruction, improvement, or betterment of real property, buildings and improvements on real property, and buildings, the provisions of chapter 48-01.2 and other applicable statutes shall apply; except that the municipality, in the revenue agreement and resolution or mortgage defining the terms and conditions upon which the project is to be constructed and financed, or in a preliminary agreement establishing the general terms of the revenue agreement and financing of the project when constructed, may permit a contracting party which is not a governmental entity or a public institution, subject to such terms and conditions as the municipality shall find necessary or desirable and proper, to provide for the construction, acquisition, and installation of the buildings, improvements, and equipment to be included in the project by any means available to the contracting party, whether or not the procedure followed by the contracting party is in conformity with said chapter 48-01.2.

No municipality may operate any project referred to in this chapter as a business or in any manner whatsoever, except as the lessor, contract vendor, secured party, or lender thereof. No debt on the general credit of the municipality may be incurred in any manner for any purpose under this chapter. No municipality may pay out of its general fund for, or otherwise contribute to the cost of, construction of a project.

Source: S.L. 1955, ch. 280, § 3; R.C. 1943, 1957 Supp., § 40-5703; S.L. 1961, ch. 284, § 2; 1965, ch. 294, §§ 2, 3; 1975, ch. 387, § 3; 1977, ch. 390, § 2; 1977, ch. 391, § 1; 1977, ch. 392, § 1; 1979, ch. 453, § 1; 1981, ch. 426, § 1; 2003, ch. 138, § 83; 2003, ch. 349, § 2; 2007, ch. 403, § 12; 2009, ch. 352, § 2.

Effective Date.

The 2009 amendment of this section by section 2 of chapter 352, S.L. 2009 became effective August 1, 2009.

The 2007 amendment of this section by section 12 of chapter 403, S.L. 2007 became effective August 1, 2007.

Notes to Decisions

Reformation of Deed.

Trial court did not err in reforming quit claim deed after finding city executed it under mistaken belief about scope of transaction, where city believed it was transferring only its interest in MIDA financed project and not fee interest. City of Fargo v. D.T.L. Props., 1997 ND 109, 564 N.W.2d 274, 1997 N.D. LEXIS 103 (N.D. 1997).

Revenue Bonds.

Bond issued pursuant to subdivision 2 of this section was municipal security even though not general obligation of municipality. Security State Bank v. State, 181 N.W.2d 225, 1970 N.D. LEXIS 146 (N.D. 1970).

Subletting or Assignment of Lease.

Nothing in this section limits the right of the lessee to sublet or assign his rights in the project. Gripentrog v. Wahpeton, 126 N.W.2d 230, 1964 N.D. LEXIS 83 (N.D. 1964).

Terms of Lease.

Subdivision 3 of this section empowers the municipality to require the lessee to operate and maintain the enterprise, including the providing of insurance and payment of taxes and depreciation. Gripentrog v. Wahpeton, 126 N.W.2d 230, 1964 N.D. LEXIS 83 (N.D. 1964).

40-57-04. Resolution authorizing project and the issuance of revenue bonds — Public notice and hearing — No election required.

The acquisition, construction, reconstruction, improvement, betterment, extension, or financing of any project, and the issue of bonds in anticipation of the collection of the revenues of the project to provide funds to pay for the cost of the project, may be authorized by an ordinance or resolution of the governing body adopted at a regular or special meeting of the governing body by the affirmative vote of a majority of its members. Before the issuance of revenue bonds under this chapter, the governing body shall give notice and hold a public hearing on the proposed bond issue. Notice of the hearing must be published in the official newspaper of the municipality once a week for two successive weeks before the time set for the hearing. The notice must specify the time and place of the hearing, and the amount and purpose of the proposed bond issue. The governing body may not approve the bond issue unless it appears, after the public hearing, that approval is in the public interest of the municipality. No election is required to authorize the use of any of the powers conferred by this chapter. No public hearing is required before the issuance of refunding bonds issued under section 40-57-19.1.

Source: S.L. 1955, ch. 280, § 4; R.C. 1943, 1957 Supp., § 40-5704; S.L. 1977, ch. 392, § 2; 1979, ch. 454, § 1; 2003, ch. 349, § 3; 2009, ch. 352, § 3.

Effective Date.

The 2009 amendment of this section by section 3 of chapter 352, S.L. 2009 became effective August 1, 2009.

40-57-04.1. Notice to competitors — Authority to issue bonds limited if project would compete with existing enterprises.

Prior to approval of the issuance of any bonds under authority of this chapter, except refunding bonds issued pursuant to section 40-57-19.1, the governing body of the municipality shall, when a competitive project is involved, include notice of the competitive nature of the proposed project in the public notice required to be published prior to the public hearing required under section 40-57-04. The governing body shall not approve the bond issue unless it appears that the impact and effect of the issue upon existing industry and business will not result in an unfair advantage for the proposed project to the substantial detriment of existing enterprises.

Source: S.L. 1979, ch. 455, § 1; 2003, ch. 349, § 4.

Notes to Decisions

Validity of Bond Issuance.

Under N.D.C.C. § 40-57-12, the recital that bonds were issued pursuant to the Municipal Industrial Development Act is conclusive evidence of the validity and regularity of issuance of the bonds. Thus, a challenge to bonds based upon city council’s alleged failure to comply with the requirements of this section was precluded by such recital. Allen v. Minot, 363 N.W.2d 553, 1985 N.D. LEXIS 269 (N.D. 1985).

40-57-05. Approval of public officer not required.

The consent of any governmental body or public officer of the state is not required to authorize the issuance or sale of bonds or the making of any mortgage in connection therewith.

Source: S.L. 1955, ch. 280, § 5; R.C. 1943, 1957 Supp., § 40-5705; S.L. 1979, ch. 456, § 1; 2003, ch. 349, § 5; 2009, ch. 352, § 4.

Effective Date.

The 2009 amendment of this section by section 4 of chapter 352, S.L. 2009 became effective August 1, 2009.

40-57-06. Certificate of convenience or necessity not required.

It shall not be necessary for any municipality proceeding under this chapter to obtain any certificate of convenience or necessity, franchise, license, permit, or other authorization from any bureau, board, commission, or other instrumentality of the state in order to acquire, construct, reconstruct, improve, better, or extend any project or for the issuance of bonds in connection therewith.

Source: S.L. 1955, ch. 280, § 6; R.C. 1943, 1957 Supp., § 40-5706.

40-57-07. Cost of project — How determined.

In determining the cost of a project, the governing body may include all costs and estimated costs of the issuance of the revenue bonds; all engineering, inspection, fiscal, and legal expenses; any bond reserves and the interest that it is estimated will accrue during the construction period and for six months thereafter on money borrowed or which it is estimated will be borrowed under this chapter; and the cost of retiring any existing indebtedness that the governing body of the municipality determines to be necessary or desirable and in furtherance of the public health or welfare, regardless of whether the existing indebtedness constitutes all or a portion of the cost being financed by the issuance of the bonds.

Source: S.L. 1955, ch. 280, § 7; R.C. 1943, 1957 Supp., § 40-5707; S.L. 1977, ch. 216, § 5; 1977, ch. 392, § 3; 2009, ch. 352, § 5.

Effective Date.

The 2009 amendment of this section by section 5 of chapter 352, S.L. 2009 became effective August 1, 2009.

40-57-08. Excess revenues not to revert to general fund of municipality — Exception.

Any revenues of any and all projects in excess of the amount required to pay interest upon all bonds issued hereunder, to create a sinking fund to pay the principal of such bonds, when due, to provide for the operation, maintenance, insurance, taxes, and depreciation of such project, shall not revert to the general fund of the municipality. However, at such time as there shall be outstanding no revenue bonds issued by the municipality, any excess of revenues may be transferred to the general fund of the municipality in such amounts and at such times as the governing body of the municipality may deem proper and feasible.

Source: S.L. 1955, ch. 280, § 8; R.C. 1943, 1957 Supp., § 40-5708.

40-57-09. Provisions governing revenue bonds.

The resolution or ordinance authorizing the issuance of revenue bonds under this chapter, or ordinance or resolution adopted subsequent to the adoption of the original resolution or ordinance, shall prescribe:

  1. The rate or rates of interest which such bonds shall bear;
  2. Whether the bonds shall be in one or more series;
  3. The date or dates which such bonds shall bear;
  4. The time or times, not exceeding forty years from their respective dates, when such bonds shall mature;
  5. The medium in which such bonds shall be payable;
  6. The place or places where such bonds shall be payable;
  7. Whether or not such bonds shall carry registration privileges, and what such privileges, if any, shall be;
  8. The terms of redemption, if any, to which such bonds shall be subject;
  9. The manner in which such bonds shall be executed;
  10. The terms, covenants, and conditions which such bonds shall contain; and
  11. The form, either coupon or registered, in which such bonds shall be issued.

Source: S.L. 1955, ch. 280, § 9; R.C. 1943, 1957 Supp., § 40-5709; S.L. 1967, ch. 340, § 1; 1983, ch. 466, § 1.

40-57-09.1. Industrial development revenue bond guarantee program — Bond issuance fee — Appropriation. [Repealed]

Repealed by S.L. 1985, ch. 467, § 1.

40-57-10. Sale of revenue bonds.

Revenue bonds shall be sold at not less than ninety-five percent of par plus any accrued interest. Such bonds may be sold at private sale, or such bonds may be sold at public sale after notice of such sale has been published once at least five days prior to such sale in a newspaper circulating in the municipality. State or national banks may purchase bonds from each issue of revenue bonds issued under the provisions of this chapter in an amount not to exceed at any time twenty-five percent of the unimpaired capital and surplus of the bank.

Source: S.L. 1955, ch. 280, § 10; R.C. 1943, 1957 Supp., § 40-5710; S.L. 1961, ch. 284, § 3; 1965, ch. 294, § 4; 1967, ch. 340, § 2; 1971, ch. 422, § 1; 1977, ch. 393, § 1; 1983, ch. 466, § 2.

Notes to Decisions

Excess Purchase.

Where state bank purchased revenue bonds in excess of amount prescribed under this section, fact that neither seller of securities nor bank was aware of purchase limitation did not permit rescission of purchase contract since seller had not contributed to or induced the mistake. Security State Bank v. State, 181 N.W.2d 225, 1970 N.D. LEXIS 146 (N.D. 1970).

40-57-11. Bonds and receipts or certificates issued pending preparation of bonds — Negotiability.

Pending the preparation of the definitive bonds, interim certificates or receipts, in the form and with the provisions the governing body may determine, may be issued pursuant to this chapter. The bonds and interim receipts or certificates shall be negotiable within the meaning of and for all purposes specified in title 41.

Source: S.L. 1955, ch. 280, § 11; R.C. 1943, 1957 Supp., § 40-5711; S.L. 1981, ch. 91, § 36; 1983, ch. 466, § 3.

Cross-References.

Uniform Commercial Code, investment securities, see ch. 41-08.

40-57-12. Validity of bonds.

Revenue bonds bearing the signatures of the appropriate officers who are in office on the date of the signing thereof shall be valid and binding obligations notwithstanding that before the delivery thereof and payment therefor, any or all of the persons whose signatures appear thereon shall have ceased to be officers of the municipality issuing the same. The validity of said bonds shall not be dependent on nor be affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the project for which said bonds are issued. The ordinance or resolution authorizing said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, and such recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Source: S.L. 1955, ch. 280, § 12; R.C. 1943, 1957 Supp., § 40-5712.

Notes to Decisions

In General.

Under this section, the recital that bonds were issued pursuant to the Municipal Industrial Development Act is conclusive evidence of the validity and regularity of issuance of the bonds. Thus, a challenge to bonds based upon city council’s alleged failure to comply with the requirements of N.D.C.C. § 40-57-04.1 was precluded by such recital. Allen v. Minot, 363 N.W.2d 553, 1985 N.D. LEXIS 269 (N.D. 1985).

Invalidation of Bonds by Court.

A competitor who has opposed the issuance of Municipal Industrial Development Act bonds may not have the bonds invalidated by a court. Allen v. Minot, 363 N.W.2d 553, 1985 N.D. LEXIS 269 (N.D. 1985).

Purpose.

The intended purpose of this section is to prohibit any legal challenge to the validity of the bonds. Allen v. Minot, 363 N.W.2d 553, 1985 N.D. LEXIS 269 (N.D. 1985).

Collateral References.

Adverse impact upon existing business as factor affecting validity and substantive requisites of issuance, by state or local governmental agencies, of economic development bonds in support of private business enterprise, 39 A.L.R.4th 1096.

40-57-13. Bonds exempt from taxation — Exception.

Bonds issued under the provisions of this chapter, and the income therefrom, shall be exempt from any taxes, except inheritance, estate, and transfer taxes.

Source: S.L. 1955, ch. 280, § 13; R.C. 1943, 1957 Supp., § 40-5713.

40-57-14. Covenants that may be inserted in ordinance or resolution authorizing bonds.

  1. Any ordinance or resolution authorizing the issuance of bonds under this chapter to finance, in whole or in part, the cost of any project may contain covenants, notwithstanding that the covenants may limit the exercise of powers conferred by this chapter, as to:
    1. The rents or payments to be charged with respect to the project.
    2. The use and disposition of the revenues of the projects.
    3. The creation and maintenance of sinking funds and the regulation, use, and disposition thereof.
    4. The creation and maintenance of funds to provide for maintaining the project and replacement of those properties that are subject to depreciation.
    5. The purpose, or purposes, to which the proceeds of this sale of bonds may be applied and the use and disposition of the proceeds.
    6. The nature of mortgages or other encumbrances on the project made in favor of the holder of the bonds, or a trustee therefor.
    7. The events of default and the rights and liabilities arising thereon and the terms and conditions upon which the holders of bonds issued under this chapter may bring any suit or action on the bonds or on any coupons thereof.
    8. The issuance of other or additional bonds or instruments payable from or constituting a charge against the revenue of the project.
    9. The insurance to be carried upon the project and the use and disposition of insurance moneys.
    10. The keeping of books of account and the inspection and audit thereof.
    11. The terms and conditions upon which the bonds become or may be declared due before maturity and the terms and conditions upon which the declaration and its consequences may be waived.
    12. The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations.
    13. The vesting in a trustee of the rights to enforce any covenants made to secure, to pay, or in relation to, the bonds and the powers and duties of the trustee and the limitation of liabilities thereof.
    14. The terms and conditions upon which the holder of the bonds, or the holders of any proportion or percentage of them, may enforce any covenants made under this chapter or any duties imposed thereby.
    15. A procedure by which the terms of any ordinance or resolution authorizing bonds or of any other contract with bondholders, including an indenture of trust or similar instrument, may be amended or abrogated, and the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given.
    16. The subordination of the security of any bonds issued and the payment of principal and interest thereof, to the extent deemed feasible and desirable by the governing body, to other bonds or obligations of a municipality issued to finance the project or that may be outstanding when the bonds thus subordinated are issued and delivered.
  2. Nothing in this chapter authorizes any municipality to do anything or for any purpose that would result in the creation or incurring of a debt or indebtedness or the issuance of any instrument that would constitute a bond or debt within the meaning of any provisions, limitation, or restriction of the Constitution of North Dakota relating to the creation or incurring of a debt or indebtedness or the issuance of an instrument constituting a bond or debt.

Source: S.L. 1955, ch. 280, § 14; R.C. 1943, 1957 Supp., § 40-5714; S.L. 1961, ch. 284, § 4; 1977, ch. 392, § 4; 2009, ch. 352, § 6.

Effective Date.

The 2009 amendment of this section by section 6 of chapter 352, S.L. 2009 became effective August 1, 2009.

40-57-15. Liability of municipality for bonds — Taxing power prohibited — Bond not a lien.

Revenue bonds issued under this chapter shall not be payable from nor charged upon any funds other than the revenue pledged to the payment thereof, nor shall the municipality issuing the same be subject to any liability thereon. No holder or holders of any such bonds shall ever have the right to compel any exercise of the taxing power of the municipality to pay any such bonds or the interest thereon, nor to enforce payment thereon against any property of the municipality except those projects, or portions thereof, mortgaged or otherwise encumbered under the provisions and for the purpose of this chapter. Such bonds shall not constitute a charge, lien, nor encumbrance, legal or equitable, upon any property of the municipality, except those projects, or portions thereof, mortgaged or otherwise encumbered under the provisions and for the purposes of this chapter.

Each bond under this chapter shall recite in substance that the bond, including interest thereon, is payable solely from the revenue pledged to the payment thereof, except that such bond may be secured by a mortgage or other encumbrance on the project, or portion thereof, as authorized in this chapter, and that the bond does not constitute a debt of the municipality within the meaning of any constitutional or statutory limitation.

Source: S.L. 1955, ch. 280, § 15; R.C. 1943, 1957 Supp., § 40-5715.

40-57-16. Remedies of bondholders in general.

Subject to any contractual limitations binding upon the holders of any issue of revenue bonds, or a trustee therefor, including the restriction of the exercise of any remedy to a specified proportion or percentage of such holders, any holder of bonds, or any trustee therefor, for the equal benefit and protection of all bondholders similarly situated may:

  1. By mandamus or other suit, action, or proceeding at law or in equity, enforce its rights against the municipality and its governing body and any of its officers, agents, and employees and may require and compel such municipality or such governing body or any such officers, agents, or employees to perform and carry out its and their duties and obligations under this chapter and its and their covenants and agreements with bondholders.
  2. By action or suit in equity, require the municipality and the governing body thereof to account as if they were the trustees of an express trust.
  3. By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders.
  4. Bring suit upon the bonds.
  5. Foreclose any mortgage or lien given under the authority of this chapter, and cause the property standing as security to be sold under any proceedings permitted by law.

No right or remedy conferred by this chapter upon any bondholder, or upon any trustee therefor, is intended to be exclusive of any other right or remedy, but each such right or remedy is cumulative and in addition to every other right or remedy and may be exercised without exhausting and without regard to any other remedy conferred by this chapter, or by any other law in this state.

Source: S.L. 1955, ch. 280, § 16; R.C. 1943, 1957 Supp., § 40-5716.

40-57-17. Exemptions from taxation. [Repealed]

Repealed by S.L. 1975, ch. 387, § 6.

Note.

Section 7 of ch. 387, S.L. 1975 provided:

“The repeal of section 40-57-17 shall not affect the validity of tax exemptions granted pursuant to that section prior to the effective date of this Act; provided, however, that the tax exemptions granted under that section shall be subject to the provisions of section 40-57.1-06 if there is a change in project operator or the use of the property”.

40-57-18. Construction.

The powers conferred by this chapter shall be in addition and supplemental to and not in substitution for, and the limitations imposed by this chapter shall not affect the powers conferred by, any other law. Revenue bonds may be issued under this chapter without regard to any other provisions of the laws of this state. The project may be financed or acquired, purchased, constructed, reconstructed, improved, bettered, and extended, and bonds may be issued under this chapter for said purposes, notwithstanding that any other law may provide for the financing, acquisition, purchase, construction, reconstruction, improvement, betterment, and extension of a like project or for the issuance of bonds for like purposes, and without regard to the requirements, restrictions, debt, or other limitations or other provisions contained in any other law, including any requirement for any restriction or limitation on the incurring of indebtedness or the issuance of bonds. Insofar as the provisions of this chapter are inconsistent with any other law of this state, the provisions of this chapter shall be controlling with reference to the issuance of revenue bonds and the security therefor.

Source: S.L. 1955, ch. 280, § 18; R.C. 1943, 1957 Supp., § 40-5718; S.L. 1977, ch. 392, § 5.

40-57-19. General obligation bonds — Issuance — Levy. [Repealed]

Source: S.L. 1961, ch. 284, § 5; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-57-19.1. Refunding bonds. [Repealed]

Source: S.L. 1977, ch. 394, § 1; 2009, ch. 352, § 7; 2015, ch. 439, § 104, eff for taxable years beginning after December 31, 2014.

Effective Date.

The repeal of this section by section 104 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-57-19.2. Refunding bonds.

  1. Any municipality may provide for the issuance of refunding bonds to refund, in whole or in part, bonds previously issued by the municipality under the authority of this chapter for any of the following purposes:
    1. To extend the maturities of the outstanding bonds.
    2. To consolidate or restructure or reduce the debt service of the outstanding bonds.
    3. To remove covenants made with respect to the issuance of the outstanding bonds.
  2. The principal amount of the refunding bonds may include:
    1. The principal amount of the outstanding bonds to be refunded.
    2. Any interest accrued or to accrue to the earliest or subsequent date of redemption, or maturity of the outstanding bonds to be refunded.
    3. Any redemption premium required to be paid on the outstanding bonds to be refunded.
    4. Any expenses related to the issuance of the refunding bonds.
    5. Any interest on the refunding bonds to be paid with the proceeds of the refunding bonds.
  3. When the refunding bonds are issued and sold by more than six months in advance of the date or dates determined by the issuer for the redemption or retirement of all of the outstanding bonds to be refunded, the proceeds of the refunding bonds, including any premium or accrued interest, must be deposited in escrow with a suitable bank or trust company. The escrowed proceeds must be invested and reinvested in direct obligations of the United States or any agency or instrumentality of the United States, in any obligations of which the principal and interest are unconditionally guaranteed by the United States, in certificates of deposit or time deposits secured by direct obligations of the United States, or by obligations of which the principal and interest are unconditionally guaranteed by the United States. Funds other than proceeds of the refunding bonds, including moneys on hand in a bond fund or sinking fund maintained for the payment of the outstanding bonds to be refunded and not immediately needed for the payment of interest or principal due, also may be deposited in the escrow fund and invested in the same manner as the proceeds of the refunding bonds. The principal of and earnings on the obligations or securities in the escrow fund may be used to retire or redeem the outstanding bonds, pay any principal of or interest on the refunding bonds, or pay any expenses relating to the retirement or redemption of the outstanding bonds or the issuance of the refunding bonds. Any proceeds of the refunding bonds or money in the escrow fund not expended as set forth in this section may be returned to the industrial or commercial enterprise as an overpayment of rentals or purchase price installments.

Source: S.L. 2017, ch. 282, § 1, effective August 1, 2017.

40-57-20. Declaration and finding of public purpose.

The legislative assembly declares and finds that it is and has been the purpose of this chapter to sanction, authorize, and encourage activities in the public interest and for the welfare of the state, its municipal subdivisions, and people by assisting establishment of additional industrial plants and activities within the state and increasing production of wealth and adding to the volume of employment, particularly during those seasons when employment in farming and ranching is slack, thus alleviating unemployment among the people of the state.

Source: S.L. 1961, ch. 284, § 6.

CHAPTER 40-57.1 Tax Exemptions for New and Expanding Businesses

40-57.1-01. Declaration and finding of public purpose.

The legislative assembly declares and finds that it is and has been its purpose in preparing and adopting the provisions of this chapter to sanction, authorize, and encourage activities in the public interest and for the welfare of the state, its subdivisions, and people by assisting in the establishment of additional industrial plants, the expansion and retention of existing business, and promotion of economic activities within the state and thereby increasing production of wealth and adding to the volume of employment, particularly during those seasons when employment in farming and ranching is slack, thus alleviating unemployment among the people of the state.

It is the intent of the legislative assembly that political subdivisions and the state board of equalization in their determination of whether the tax exemptions authorized by this chapter shall be granted shall give due weight to their impact and effect upon existing industry and business to the end that an unfair advantage shall not be given to new or expanded enterprises which is to the substantial detriment of existing enterprises.

Source: S.L. 1969, ch. 385, § 1; 1991, ch. 447, § 1.

Notes to Decisions

Constitutionality.

This chapter is constitutional as there is no denial of equal protection; no unconstitutional grant of privileges and immunities available to some and not to others of the same class; no arbitrary classification to offend due process; and no unconstitutional delegation of legislative authority. Southern Valley Grain Dealers Ass'n v. Board of County Comm'rs, 257 N.W.2d 425, 1977 N.D. LEXIS 164 (N.D. 1977).

New Industry.

This section does not require the project operator to be a new business entity or the project to be an industry new to the state of North Dakota in order to qualify for the exemption. Southern Valley Grain Dealers Ass'n v. Board of County Comm'rs, 257 N.W.2d 425, 1977 N.D. LEXIS 164 (N.D. 1977).

40-57.1-02. Definitions.

As used in this chapter, unless a different meaning clearly appears from the context:

  1. “Local development organization”, as used in section 40-57.1-04.3, means a profit or nonprofit corporation incorporated under the laws of this state or a limited liability company organized under the laws of this state, formed for the purpose of furthering the economic development of its community and environs, with authority to promote and assist the growth and development of business concerns in the areas covered by its operations. The operations of the corporation or limited liability company must be limited to a specified area in this state. The controlling interest in the corporation or limited liability company must be held by at least twenty-five persons residing or doing business in the community or its environs. These persons must control not less than seventy-five percent of the voting control of the corporation or limited liability company. No shareholder or member of the corporation or limited liability company may own in excess of twenty-five percent of the voting control in the corporation or limited liability company if that shareholder or member has a direct pecuniary interest in any project or business concern which will occupy the property of the corporation or limited liability company. The primary objective of the corporation or limited liability company must be to benefit the community through increased employment, payroll, business volume, and corresponding factors rather than monetary profits to its shareholders or members. Any monetary profits or other benefits going to the shareholders or members must be merely incidental to the primary objective of the corporation or limited liability company.
  2. “Municipality” means counties as well as municipalities of the types listed in subsection 4 of section 40-01-01.
  3. “Primary sector business” has the meaning provided in section 1-01-49.
  4. “Project” means any revenue-producing enterprise, or any combination of two or more of these enterprises. For the purpose of the income tax exemption, “project” means both “primary sector business” and “tourism” as defined by this section and includes the establishment of a new qualifying business or the expansion of a qualifying existing business.
  5. “Tourism” means all tourism-related businesses and activities, including recreation, historical and cultural events, guide services, and unique lodging and food services which serve as destination attractions.

Source: S.L. 1969, ch. 385, 2; 1973, ch. 341, 2; 1977, ch. 391, § 2; 1973, ch. 341, § 2; 1977, ch. 391, § 2; 1987, ch. 503, § 1; 1991, ch. 447, § 2; 1993, ch. 54, § 106; 1993, ch. 92, § 9; 1993, ch. 407, § 1; 2017, ch. 56, § 5, eff for taxable years beginning after December 31, 2016.

Notes to Decisions

Project.

This section does not require the project operator to be a new business entity or the project to be an industry new to the state of North Dakota in order to qualify for the exemption. Southern Valley Grain Dealers Ass'n v. Board of County Comm'rs, 257 N.W.2d 425, 1977 N.D. LEXIS 164 (N.D. 1977).

40-57.1-03. Municipality’s authority to grant or revoke tax exemption or payments in lieu of taxes — Notice to competitors — Limitations.

  1. After negotiation with a potential project operator, a municipality may grant a partial or complete exemption from ad valorem taxation on all buildings, structures, fixtures, and improvements used in or necessary to the operation of a project for a period not exceeding five years from the date of commencement of project operations. A municipality may also grant a partial or complete exemption from ad valorem taxation on buildings, structures, fixtures, and improvements used in or necessary to the operation of a project that produces or manufactures a product from agricultural commodities for all or part of the sixth year through the tenth year from the date of commencement of project operations. Before a municipality may grant a partial or complete exemption from ad valorem taxation under this section:
    1. The governing body of the municipality must have received the certification of the department of commerce division of economic development and finance that the project is a primary sector business, as defined in subsection 3 of section 40-57.1-02; or
    2. The city council or commission, if the project is proposed to be located within the boundaries of a city of fewer than forty thousand population, or the board of county commissioners, of a county of fewer than forty thousand population and if the project is proposed to be located in the county but outside the corporate limits of any city, may grant a partial or complete exemption from ad valorem taxation for a project operating in the retail sector if that governing body has obtained the approval of exemption of property under this subdivision from a majority of the qualified electors of the city or county voting on the question at a city or county election held in conjunction with a statewide general election and if that governing body has established by resolution or ordinance the criteria that will be applied by the governing body to determine whether it is appropriate to grant a partial or complete exemption from ad valorem taxation under this section for a project operating in the retail sector. The ballot for elector approval of exemption of property under this subdivision must present the question at the election for a yes or no vote on the question:
      1. Evaluation of the potential positive or adverse consequences for existing retail sector businesses in the municipality from granting the exemption;
      2. Evaluation of the short-term and long-term effects for other property taxpayers in the municipality from granting the exemption;
      3. A written agreement with the project operator, including performance requirements for which the exemption may be terminated by the governing body of the municipality if those requirements are not met; and
      4. Evaluation of whether the project operator would locate the project within the municipality without the exemption.
  2. In addition to, or in lieu of, a property tax exemption granted under this section, a municipality may establish an amount due as payments in lieu of ad valorem taxes on buildings, structures, fixtures, and improvements used in the operation of a project. The governing body of the municipality shall designate the amount of the payments for each year and the beginning year and the concluding year for payments in lieu of taxes, but the option to make payments in lieu of taxes under this section may not extend beyond the twentieth year from the date of commencement of project operations. To establish the amount of payments in lieu of taxes, the governing body of the municipality may use actual or estimated levels of assessment and taxation or may establish payment amounts based on other factors. The governing body of the municipality may designate different amounts of payments in lieu of taxes in different years to recognize future project expansion plans or other considerations.
  3. Before a governing body may grant a partial or complete exemption from ad valorem taxation or the option to make payments in lieu of ad valorem taxes under this chapter, the governing body shall consult with the department of commerce. If the department of commerce determines that the total project costs are estimated to exceed one billion dollars, the department of commerce shall conduct a public hearing and notice of that hearing must be provided to each affected taxing district and any existing business within the municipality for which the potential project would be a competitor.
  4. By November first of each year, the municipality that granted the option to make payments in lieu of taxes shall certify to the county auditor the amount of payments in lieu of taxes due under this section in the following year. After receiving the statement from the municipality, the county auditor shall certify the payments in lieu of taxes to the county treasurer for collection at the time when, and in the manner in which, ad valorem taxes must be certified. Upon receipt by the county treasurer of the amount of payments in lieu of taxes under this section, the county treasurer shall apportion and distribute that amount to taxing districts on the basis on which the general real estate tax levy is apportioned and distributed. The municipality may enter into a written agreement with the local school district and any other local taxing districts that wish to enter the agreement for an alternate method of apportionment and distribution. If such an agreement is entered into, the county treasurer shall apportion and distribute the money according to the written agreement. All provisions of law relating to enforcement, administration, collection, penalties, and delinquency proceedings for ad valorem taxes apply to payments in lieu of taxes under this section. However, the discount for early payment of taxes under section 57-20-09 does not apply to payments in lieu of taxes under this section. The buildings, structures, fixtures, and improvements comprising a project for which payments in lieu of taxes are allowed under this section must be excluded from the valuation of property in the taxing district for purposes of determining the mill rate for the taxing district.
  5. Negotiations with potential project operators for tax exemption or payments in lieu of taxes must be carried on by the city council or commission if the project is proposed to be located within the boundaries of a city, and by the board of county commissioners if the project is proposed to be located outside the corporate limits of any city. A partial exemption must be stated as a percentage of the total ad valorem taxes assessed against the property. Unless the governing body of the municipality determines that there is no existing business within the municipality for which the potential project would be a competitor, the potential project operator shall publish two notices to competitors, the form of which must be prescribed by the tax commissioner, of the application for tax exemption or payments in lieu of taxes in the official newspaper of the municipality at least one week apart. The publications must be completed not less than fifteen nor more than thirty days before the governing body of the municipality is to consider the application. The municipality shall determine whether the granting of the exemption or payments in lieu of taxes, or both, is in the best interest of the municipality, and if it so determines, shall give its approval.
  6. By motion approved by the governing body of the municipality before the beginning of a taxable year for which a property tax exemption or the option to make payments in lieu of taxes under this section previously has been approved by the governing body, a property tax exemption may be revoked or reduced and payments in lieu of taxes may be revoked or increased for that taxable year for reasons specified in a negotiated agreement or if the governing body finds that:
    1. Information provided by the project operator during the negotiation and deliberation of a property tax exemption or the option to make payments in lieu of taxes has proven to be inaccurate or untrue;
    2. Use of the property by the project operator does not comply with the reasonable expectations of the governing body at the time the property tax exemption or the option to make payments in lieu of taxes was approved;
    3. The property has been improved to a substantially greater extent than the governing body reasonably anticipated at the time the property tax exemption or the option to make payments in lieu of taxes was approved; or
    4. There has been a change of ownership of the property since the property tax exemption or the option to make payments in lieu of taxes was approved.
  7. During the negotiation and deliberation of a property tax exemption or the option to make payments in lieu of taxes under this chapter, a municipality shall include, as nonvoting ex officio members of its governing body, a representative appointed by the school board of each school district affected by the proposed action and a representative appointed by the board of township supervisors of each township affected by the proposed action. Before granting a property tax incentive on any parcel of property that is anticipated to receive a property tax incentive for more than five years, the governing body of a city must comply with the requirements in section 40-05-24.
  8. A city or county may not supersede or expand the provisions of this section under home rule authority.

Shall the governing body of [name of county or city] be empowered to grant property tax exemptions upon application of new or expanding retail sector businesses?

Only a governing body of a city or county that meets the requirements of this subdivision may grant a partial or complete exemption from ad valorem taxation under this section for a project operating in the retail sector. Criteria established by the governing body under this subdivision, at a minimum, must be intended to require:

Source: S.L. 1969, ch. 385, § 3; 1971, ch. 424, § 1; 1971, ch. 425, § 1; 1975, ch. 387, § 4; 1983, ch. 593, § 29; 1989, ch. 495, § 1; 1991, ch. 447, § 3; 1994 Sp., ch. 784, § 1; 1995, ch. 393, § 1; 1995, ch. 394, § 1; 1999, ch. 368, § 1; 1999, ch. 497, § 1; 2013, ch. 315, § 1; 2013, ch. 316, § 1; 2015, ch. 457, § 1, eff for taxable years beginning after December 31, 2014; 2017, ch. 277, § 2, effective August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 457, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

The 2013 amendment of this section by section 1 of chapter 316, S.L. 2013 is effective for property tax exemptions granted by a municipality to initially become effective for taxable years beginning after December 31, 2014.

The 2013 amendment of this section by section 1 of chapter 315, S.L. 2013 is effective for taxable years beginning after December 31, 2013, regardless of the date a property tax exemption or the option to make payments in lieu of taxes was approved.

Note.

Section 8 of chapter 277, S.L. 2017 provides, “ EFFECTIVE DATE. Sections 1 through 4 of this Act are effective for property tax incentives approved after July 31, 2017.”

Section 40-57.1-03 was amended 2 times by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 315, Session Laws 2013, House Bill 1046; and section 1 of chapter 316, Session Laws 2013, Senate Bill 2314.

Notes to Decisions

Notice to Competitors.

Personal notice to competitors is not required, and the notice by publication provided in this section is sufficient to meet due process requirements. Southern Valley Grain Dealers Ass'n v. Board of County Comm'rs, 257 N.W.2d 425, 1977 N.D. LEXIS 164 (N.D. 1977).

40-57.1-04. Exemption from income tax — Notice to competitors — Limitations.

Upon application by a project operator to the state board of equalization, the net income of a project may be exempt from state income tax for a period not exceeding five years from commencement of project operations. The application for the exemption must be reviewed as to the eligibility of the project by the department of commerce division of economic development and finance and its recommendations forwarded to the state board of equalization. The project operator shall provide notice to competitors in the manner prescribed by the state board of equalization. The board shall determine whether the granting of the exemption is in the best interest of the people of North Dakota and, if it so determines, approve the exemption. The board shall, after making its determination, certify the findings back to the applicant and to the tax commissioner. Nothing contained herein shall have the effect of exempting the project from filing an annual income tax return.

Source: S.L. 1969, ch. 385, § 4; 1991 ch. 447, § 4; 2001, ch. 488, § 19.

40-57.1-04.1. Ad valorem tax exemption for existing structures — Requirements.

Notwithstanding any other provision of this chapter, a project operator who otherwise qualifies under this chapter may, upon application consistent with the provisions of this chapter, receive a partial or complete exemption from ad valorem taxation on any existing structure used in or necessary to the operation of the project for a period not exceeding five years from the date of commencement of project operations in the structure. For taxable years beginning after December 31, 1988, the governing body of a municipality may grant additional exemptions of property under this section during a period not exceeding ten years from the date of commencement of project operations in the structure if the structure is owned by the United States, the state, or a political subdivision of the state and leased to the project operator. The project operator shall apply to the governing body of the municipality annually for the exemption and the governing body of the municipality may grant the exemption for only one year at a time.

Source: S.L. 1981, ch. 427, § 1; 1987, ch. 503, § 2; 1989, ch. 495, § 2; 1989, ch. 496, § 1; 1989, ch. 497, § 1; 1991, ch. 447, § 5.

40-57.1-04.2. “Local development corporation” defined — Requirements — Purpose. [Repealed]

Repealed by S.L. 1991, ch. 447, § 10.

Cross-References.

As to present provisions regarding the definition of a local development corporation, see § 40-57.1-02.

40-57.1-04.3. Property tax exemption on speculative industrial buildings and properties owned by a local development organization.

A municipality may, in its discretion, grant partial or complete exemption from ad valorem taxation on buildings, structures, and improvements constructed and owned by a local development organization for the express purpose of attracting new industry to this state. This exemption from ad valorem taxation is only available on new buildings, structures, and improvements while they remain unoccupied. Once the building, structure, or improvement is occupied, the exemption continues until the next annual assessment date following the first occupancy. This section does not affect the eligibility for property tax exemption of a business available under other provisions of this chapter, provided application for the tax exemption is granted prior to occupancy. A written request for the exemption is to be filed by the local development organization with the municipality. The request will be reviewed at an official meeting of the governing body and will be placed on the agenda for final action at the next official meeting. The governing body of the municipality shall notify the county director of tax equalization with respect to any exemption granted under this section.

Source: S.L. 1981, ch. 428, § 2; 1991, ch. 447, § 6; 1993, ch. 92, § 10; 1993, ch. 408, § 1.

40-57.1-04.4. Clearance of tax obligations and tax liens of record.

  1. A project operator is not eligible for the income tax exemption under section 40-57.1-04 until a showing is made that the project operator has satisfied all state or local tax obligations and tax liens of record for delinquent property, income, income withholding, sales, or use taxes owed to the state or a political subdivision.
  2. A certificate from the tax commissioner to the state board of equalization satisfies the requirement of subsection 1.
  3. If the project operator is a corporation or a passthrough entity defined in section 57-38-01, any of its officers, governors, or managers charged with the responsibility for making either property, income, income withholding, sales, or use tax returns and payments are subject to the provisions of subsections 1 and 2 with respect to all state or local tax obligations and tax liens of record for delinquent property, income, income withholding, sales, or use taxes for which the individual is personally liable. If the project operator is a partnership, each general partner is subject to the provisions of subsections 1 and 2 with respect to all state or local tax obligations or tax liens of record for delinquent property, income, income withholding, sales, or use taxes for which the individual is personally liable.

Source: S.L. 1993, ch. 407, § 2; 1995, ch. 103, § 75; 2015, ch. 432, § 2, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 432, S.L. 2015 became effective July 1, 2015.

Note

Section 12 of chapter 432, S.L. 2013 provides, in part: “EFFECTIVE DATE. Section 2 of this Act is effective for applications filed after June 30, 2015.”

40-57.1-05. Reapplication for tax exemption — Discretion of board of equalization.

The municipality or the state board of equalization, upon the presentation of additional facts and circumstances which were not presented or discovered at the time of the original application for tax exemption under the provisions of this chapter, may accept reapplications from project operators at any time if the project operators first publish notice of application for tax exemption as required by this chapter.

Source: S.L. 1971, ch. 426, § 1; 1989, ch. 495, § 3; 1991, ch. 447, § 7; 1999, ch. 50, § 59.

40-57.1-06. Change in investment, new location, or change in project operator or use requiring reapplication for tax exemption or payments in lieu of taxes.

If the capital investment in the buildings, structures, fixtures, and improvements comprising the project exceeds the original investment or total investment after an approved reapplication under this section because expansion of the project has increased the investment in the project by more than twenty percent, the project operator must reapply to receive an exemption or to make payments in lieu of taxes on the added value of the property. If the project operator does not reapply, or if the reapplication is disapproved, the increased capital value of the buildings, structures, fixtures, and improvements comprising the project is subject to ad valorem taxation. If at any time a project operator who is exempt from taxation or subject to payments in lieu of taxes under this chapter moves the business to a new location, the project operator must reapply to retain the remaining balance of the property tax exemption or the option to make payments in lieu of taxes or elect to make application as a new business. A business relocation has no effect on the income tax exemption of the project operator if it is shown by the project operator to the satisfaction of the state board of equalization that the nature of the business has not been changed by the move and that the effect of the business upon competitors has not been changed by the move. In addition, a property tax exemption or option to make payments in lieu of taxes provided by this chapter applies only to the project operator to whom it is granted and is valid only while the property is used for the purposes stated in the application. If there is a change in use of the property or if a new project operator takes possession of the property, the property tax exemption or option to make payments in lieu of taxes terminates and the project operator must file a new application with the municipality for a tax exemption or option to make payments in lieu of taxes for the remainder of the exemption or payments in lieu of taxes period provided under section 40-57.1-03.

Source: S.L. 1971, ch. 427, § 1; 1975, ch. 387, § 5; 1991, ch. 447, § 8; 1994 Sp., ch. 784, § 2.

40-57.1-07. Exemptions — Time for making application.

  1. No property tax exemption shall be granted under this chapter unless the application for it is granted as provided in this chapter prior to the commencement of construction of the project as that term is defined in section 40-57.1-02 or prior to occupancy by the project operator if the project is an existing building.
  2. Application for an income tax exemption as provided in this chapter must be made by the project operator no later than one year after the commencement of project operations.

Source: S.L. 1973, ch. 341, § 1; 1991, ch. 447, § 9.

40-57.1-08. Large industrial projects — Exclusion from provisions of chapter. [Repealed]

Repealed by S.L. 1994 Sp., ch. 784, § 7.

CHAPTER 40-57.2 Industrial Planning Surveys and Vocational Training

40-57.2-01. Cities and counties may enter into agreements for surveys for industrial development and career and technical education and on-the-job training.

The governing body of any city or county of this state is authorized in accordance with the provisions of this chapter to enter into contracts with any person, firm, association, corporation, or limited liability company for the purpose of obtaining site surveys and site development plans, structural and mechanical plans and surveys, market surveys, and similar plans and surveys relating to industrial development and plant location, design, construction, equipment, and operation. Similar contracts may be entered into by such political subdivisions in accordance with the provisions of this chapter for the providing of career and technical education and on-the-job training for residents of this state in industries located within this state. Such agreements shall be entered into only with a financially and educationally reliable person, firm, association, corporation, or limited liability company that has been approved for such agreement by a local development organization located in such city or county and organized to encourage industrial and commercial development and growth.

Source: S.L. 1969, ch. 386, § 1; 1993, ch. 92, § 11; 2003, ch. 138, § 84.

40-57.2-02. Content of surveys.

The surveys permitted by this chapter shall consist of a detailed plan which may include, among such items required by the city or county, the following:

  1. An evaluation of proposed sites, the various methods of utilization, and the suitability of the sites for industrial development for specific types of industry.
  2. An evaluation of consumer demand for the various types of products that could be processed, assembled, fabricated, or manufactured by an industry or the different types of industry that could utilize the site, and the benefits to the city to be realized from each in terms of economic growth.
  3. The available labor supply, skilled and unskilled, and what effect various types of industries would have on the supply.
  4. Any other matters relating to planning, designing, and costs pertaining to plant buildings and plant equipment for specific plant location sites.

Source: S.L. 1969, ch. 386, § 2.

40-57.2-03. Declaration of legislative intent.

It is hereby declared to be the intent of the legislative assembly to promote the growth and development of small industry and to assist in the creation and expansion of local skills and talents in North Dakota.

Source: S.L. 1969, ch. 386, § 3.

40-57.2-04. City or county may provide funding.

Any city or county may provide funding from revenues derived from its general fund levy authority for career and technical education and on-the-job training services and surveys and otherwise implementing this chapter.

Source: S.L. 1969, ch. 386, § 4; 1983, ch. 593, § 30; 1983, ch. 606, § 50; 2003, ch. 138, § 85; 2015, ch. 439, § 56, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 56 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

CHAPTER 40-57.3 City Lodging Tax

40-57.3-01. City lodging tax — Imposition — Amount — Disposition.

The governing body of any city, by ordinance, may impose a city tax, not to exceed two percent, upon the gross receipts of retailers on the leasing or renting of hotel, motel, or other accommodations within the city for periods of fewer than thirty consecutive calendar days or one month. The tax imposed by this section must be in addition to the state sales tax on rental accommodations provided in chapter 57-39.2 and any city that imposes the tax upon gross receipts described in this section shall deposit all proceeds in the city visitors’ promotion fund. Moneys deposited in the city visitors’ promotion fund must be spent only as provided in this chapter. This chapter applies to all cities and does not limit the authority of a home rule city to levy any taxes authorized by other provisions of law.

Source: S.L. 1981, ch. 429, § 1; 1987, ch. 504, § 1; 2019, ch. 341, § 1, effective July 1, 2019.

Collateral References.

Hotel-motel room occupancy tax, 58 A.L.R.4th 274.

Obligation of Online Travel Companies to Collect and Remit Hotel Occupancy Taxes. 61 A.L.R.6th 387.

40-57.3-01.1. City lodging and restaurant tax — Imposition — Amount — Disposition — Referral.

In addition to the tax under section 40-57.3-01, the governing body of any city, by ordinance, may impose a city tax, at a rate not to exceed one percent, upon the gross receipts of retailers on the leasing or renting of hotel, motel, or other accommodations within the city for periods of fewer than thirty consecutive calendar days or one month and upon the gross receipts of a restaurant from any sales of prepared food or beverages, not including alcoholic beverages for consumption off the premises where purchased, which are subject to state sales taxes. For purposes of this section, “restaurant” means any place where food is prepared and intended for individual portion service for consumption on or off the premises and “prepared” includes heating prepackaged food. Accommodations, food, and beverages may all, each, or in any combination be subject to the tax under this section, if all items in any category which are taxable under state law are taxable, except as otherwise provided in this section. The tax imposed under this section is in addition to state sales taxes on rental accommodations and restaurant sales and any city that imposes the tax under this section shall deposit all proceeds in the city visitors’ promotion capital construction fund. Moneys deposited in the city visitors’ promotion capital construction fund must be spent only as provided in this chapter. An ordinance adopted under this section may not become effective sooner than sixty days after it is adopted by the governing body of the city. The provisions of chapter 40-12 with regard to referral of ordinances apply to an ordinance adopted under this section except that a petition to refer an ordinance adopted under this section must be presented to the governing body of the municipality before four p.m. on the sixty-fourth day after the ordinance described in the petition was adopted by the governing body of the municipality. Revenues from a tax imposed under this section may not be pledged under section 40-57.3-03 to payment of bonds or evidences of indebtedness until after the time has passed for filing a referral petition against an ordinance under this section or, if a referral petition is filed, until after the referral petition has been submitted to the vote of the electors of the municipality.

Source: S.L. 1987, ch. 504, § 2; 2013, ch. 176, § 24; 2019, ch. 341, § 2, effective July 1, 2019.

Effective Date.

The 2013 amendment of this section by section 24 of chapter 176, S.L. 2013 became effective August 1, 2013.

Collateral References.

Obligation of Online Travel Companies to Collect and Remit Hotel Occupancy Taxes. 61 A.L.R.6th 387.

40-57.3-01.2. City motor vehicle rental tax — Imposition — Amount — Disposition — Definitions.

The governing body of any city may impose, by ordinance, a city tax at a rate not to exceed one percent upon the gross receipts of a retailer on the rental of any motor vehicle for fewer than thirty days if that motor vehicle is either delivered to a renter at an airport or delivered to a renter who was picked up by the retailer at an airport. The tax imposed under this section is in addition to state sales taxes on the rental of motor vehicles for fewer than thirty days. Any city that imposes the tax under this section shall deposit all proceeds in the city visitors’ promotion fund. For purposes of this section, “motor vehicle” means a motorized passenger vehicle designed to be operated on highways and “retailer” means a company for which the primary business is the renting of motor vehicles for periods of fewer than thirty days.

Source: S.L. 2005, ch. 352, § 1.

Effective Date.

This section became effective August 1, 2005.

40-57.3-02. City visitors’ promotion fund — City visitors’ promotion capital construction fund — Visitors’ committee — Establishment — Purpose.

The governing body of any city that imposes a city tax pursuant to section 40-57.3-01, 40-57.3-01.1, or 40-57.3-01.2 , as appropriate, shall establish a city visitors’ promotion fund and a city visitors’ promotion capital construction fund. The local destination marketing organization or visitors’ committee shall serve as an advisory committee to the city governing body in administering the proceeds from the taxes available to the city under this chapter. The moneys in the visitors’ promotion fund must be used generally to promote, encourage, and attract visitors to come to the city and use the travel and tourism facilities within the city. The moneys in the visitors’ promotion capital construction fund must be used generally for tourism or the purchase, equipping, improving, construction, maintenance, repair, and acquisition of buildings or property consistent with visitor attraction or promotion. The advisory committee consists of the local destination marketing organization or the visitors’ committee.

Source: S.L. 1981, ch. 429, § 2; 1987, ch. 504, § 3; 1997, ch. 428, § 2; 2005, ch. 352, § 2; 2019, ch. 341, § 3, effective July 1, 2019.

Effective Date.

The 2005 amendment of this section by section 2 of chapter 352, S.L. 2005 became effective August 1, 2005.

40-57.3-03. Budget — Contracts — Bonds — Capital construction.

The governing body of the city shall annually set the budget, if any, under which the committee shall operate. The governing body of the city may contract with any person, firm, association, corporation, or limited liability company to carry out the purposes of the city visitors’ promotion fund or the city visitors’ promotion capital construction fund created under section 40-57.3-02. The governing body of the city may irrevocably dedicate any portion of revenues from the tax authorized under section 40-57.3-01.1 and may authorize and issue bonds or other evidences of indebtedness in the manner prescribed by section 40-35-08 to be paid by those revenues for any purpose that moneys in the city visitors’ promotion capital construction fund may be used. Such tax upon being pledged to payment of bonds or evidences of indebtedness issued pursuant to this section may not be reduced or repealed by the governing body or by the electors of the municipality by any initiated amendment to or referendum of the ordinance referred to in section 40-57.3-01.1, so long as any of such bonds or evidences of indebtedness remain outstanding. The proceeds from the tax imposed under section 40-57.3-01 may not be used for any type of capital construction or purchase of real property. The proceeds from the tax imposed under section 40-57.3-01.1 may be used only for payment of bonds issued, and the costs of issuance related thereto, under this section or for tourism or capital construction, maintenance, and repair or acquisition of property consistent with the purposes of this chapter.

Source: S.L. 1981, ch. 429, § 3; 1987, ch. 504, § 4; 1993, ch. 92, § 12; 2005, ch. 54, § 6.

Effective Date.

The 2005 amendment of this section by section 6 of chapter 54, S.L. 2005 became effective August 1, 2005.

40-57.3-04. Payment of tax — Collection by tax commissioner — Administrative expenses allowed — Rules.

The taxes imposed under this chapter are due and payable at the same time the taxpayer is required to file a return under chapter 57-39.2 and must be collected and administered by the tax commissioner in accordance with the relevant provisions of chapter 57-39.2. The taxpayer shall add the taxes imposed under this chapter to the sales, lease, or rental price and shall collect the tax from the consumer. A retailer may not advertise or hold out or state to the public, or to any consumer, directly or indirectly, that the taxes or any part of the taxes imposed under this chapter shall be assumed, absorbed, or refunded by the taxpayer. The amount the tax commissioner remits monthly to each city as taxes collected for that city’s visitors’ promotion fund and visitors’ promotion capital construction fund must be reduced by three percent as an administrative fee necessary to defray the cost of collecting the taxes and the expenses incident to collection. The administrative fee must be deposited in the general fund in the state treasury. The tax commissioner shall adopt rules necessary for the administration of this chapter. The penalties and liabilities provided in sections 57-39.2-18 and 57-39.2-18.1 specifically apply to the filing of returns and administration of the taxes imposed under this chapter. The taxes imposed under this chapter are not taxes subject to chapter 57-39.4. The tax commissioner may offset future distributions of a tax imposed and collected under this chapter if there was a previous overpayment of the tax distributed to the city. The tax commissioner, after consulting the appropriate local political subdivision, may determine the offset amount and time period for recovery of the overpayment of the tax distribution.

Source: S.L. 1981, ch. 429, § 4; 1985, ch. 468, § 1; 1987, ch. 504, § 5; 1989, ch. 498, § 1; 2013, ch. 465, § 1; 2015, ch. 432, § 3, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 432, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 1 of chapter 465, S.L. 2013 became effective August 1, 2013.

Collateral References.

Obligation of Online Travel Companies to Collect and Remit Hotel Occupancy Taxes. 61 A.L.R.6th 387.

CHAPTER 40-57.4 City Job Development Authorities

40-57.4-01. City job development authority — Board of directors member qualifications.

The governing body of a city, by resolution, may create a job development authority for the city, or may discontinue a job development authority which has been created for the city. Before a resolution is adopted to create a city job development authority, the governing body of the city shall hold a public hearing to provide interested persons an opportunity to be heard. Notice of the time, place, and purpose of the hearing must be published not less than thirty days prior to the hearing in the official newspaper of the city. If the authority is created, the question of discontinuing the authority may be placed on the ballot at the next regular election by petition signed by electors of the city equal in number to ten percent of the votes cast in the city for the office of governor in the last general election. The petition must be presented to the governing body of the city not later than thirty days after the adoption of the resolution creating the city job development authority. The question of discontinuing the authority requires a majority of the electors voting on the question for passage. If the authority is created, the governing body of the city shall appoint a board of directors. The members must be appointed without regard to political affiliation and upon their fitness to serve as members by reason of character, experience, and training.

Source: S.L. 1987, ch. 677, § 1.

Notes to Decisions

Constitutionality.

Economic development statutes contained in N.D.C.C. chs. 11-11.1, 15-69, 40-57.4, 54-34.3, 54-60, 54-60.1 constitute an enterprise; thus, a local economic development agency’s activities did not violate the prohibition in N.D. Const. art. X, § 18 against gifts of public funds. Moreover, the public purpose component of N.D. Const. art. X, § 18 and due process under the Fourteenth Amendment were satisfied because economic development programs promote the prosperity and general welfare of the people within a governmental entity. Hale v. State, 2012 ND 148, 818 N.W.2d 684, 2012 N.D. LEXIS 135 (N.D. 2012), cert. denied, 568 U.S. 1087, 133 S. Ct. 847, 184 L. Ed. 2d 655, 2013 U.S. LEXIS 566 (U.S. 2013).

40-57.4-02. Members of the city job development authority board of directors — Term of office — Oath — Expenses.

The members of the city job development authority board of directors shall serve for a term of three years or until their successors are duly qualified. Terms of office shall begin on January first and must be arranged so that the terms of office of approximately one-third of the members expire on December thirty-first each year. Each member of the board shall qualify by taking the oath provided for civil officers. The oath must be filed with the city auditor.

The board of directors shall annually elect members to serve as chairman, vice chairman, secretary, and treasurer. They shall also select an executive committee with such powers and duties as may be delegated by the board of directors. Members may be reimbursed from funds available to the authority for mileage and expenses at the rates provided for state employees in sections 44-08-04 and 54-06-09 but members may receive no compensation for service.

Source: S.L. 1987, ch. 677, § 2.

40-57.4-03. Powers and duties of city job development authorities.

The city job development authority shall use its financial and other resources to encourage and assist in the development of employment within the city. In fulfilling this objective, the job development authority may exercise the following powers:

  1. To sue and be sued.
  2. To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority.
  3. To hire professional personnel skilled in seeking and promoting new or expanded opportunities within the city.
  4. To make, amend, and repeal resolutions consistent with the provisions of this chapter as necessary to carry into effect the powers and purposes of the authority.
  5. To acquire by gift, trade, or purchase, and to hold, improve, and dispose of real or personal property.
  6. To request a tax levy as provided in section 40-57.4-04 and to expend moneys raised by the tax for the purposes provided in this chapter.
  7. To insure or provide for insurance of any real or personal property in which the authority has an insurable interest.
  8. To invest any funds held by the authority.
  9. To cooperate with political subdivisions in exercising any of the powers granted by this section.
  10. To loan, grant, or convey any funds or other real or personal property held by the authority for any purpose necessary or convenient to carry into effect the objective of the authority established by this chapter.
  11. To use existing, uncommitted funds held by the authority to guarantee loans or make other financial commitments to enhance economic development.
  12. To take an equity position in, provide a loan to, or use any other innovative financing mechanism to provide capital for a new or expanding business in this state or for a business relocating to this state.
  13. To exercise any other powers necessary to carry out the purposes and provisions of this chapter.

Source: S.L. 1987, ch. 677, § 3; 1991, ch. 108, § 4; 1993, ch. 42, § 15; 2007, ch. 105, § 2; 2015, ch. 88, § 19, eff for taxable years beginning after December 31, 2015.

Effective Date.

The 2015 amendment of this section by section 19 of chapter 88, S.L. 2015 is effective for taxable years beginning after December 31, 2015.

The 2007 amendment of this section by section 2 of chapter 105, S.L. 2007 became effective August 1, 2007.

40-57.4-04. Tax levy for city job development authorities or industrial development organizations — Financial report.

The governing body of a city which has a city job development authority shall establish a city job development authority fund and may levy a tax not exceeding the limitation in subsection 12 of section 57-15-10. In the year for which the levy is sought, a job development authority or industrial development organization seeking approval of a property tax levy under this chapter must file with the city auditor, at a time and in a format prescribed by the city auditor, a financial report for the preceding calendar year showing the ending balances of each fund held by the job development authority or industrial development organization during that year. The city auditor shall keep the job development authority fund separate from other money of the city and transmit all funds received under this section within thirty days to the board of directors of the city job development authority. The funds when paid to the city job development authority must be deposited in a special account in which other revenues of the city job development authority are deposited and may be expended by the city job development authority as provided in sections 40-57.4-02 and 40-57.4-03.

In lieu of establishing a job development authority, the governing body of a city where an active industrial development organization exists may levy a tax not exceeding the limitation in subsection 12 of section 57-15-10 and use those funds to enter into a contract with the industrial development organization for performance of the functions of a city job development authority.

Source: S.L. 1987, ch. 677, § 4; 2015, ch. 439, § 57, effective January 1, 2015; 2015, ch. 88, § 20, effective January 1, 2016; 2015, ch. 92, § 18, effective January 1, 2016.

Effective Date.

The 2015 amendment of this section by section 20 of chapter 88, S.L. 2015 is effective for taxable years beginning after December 31, 2015.

The 2015 amendment of this section by section 18 of chapter 92, S.L. 2015 2015 is effective for taxable years beginning after December 31, 2015.

The 2015 amendment of this section by section 57 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Note.

Section 40-57.4-04 was amended 3 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 20 of Chapter 88, Session Laws 2015, Senate Bill 2056; Section 18 of Chapter 92, Session Laws 2015, Senate Bill 2217; and Section 57 of Chapter 439, Session Laws 2015, Senate Bill 2144.

40-57.4-05. Dedication of tax revenues.

The governing body of a city may dedicate any portion of revenues from the tax authorized under this chapter to payment of any loan entered or grant awarded for any purpose necessary or convenient to carry into effect the objective of the authority established by this chapter.

Source: S.L. 1991, ch. 108, § 5.

40-57.4-06. Joint job development authority.

The governing bodies of a city and one or more other political subdivisions, by resolution, may create a joint job development authority. If the authority is created, the governing bodies of the political subdivisions shall appoint a board of directors in the size and manner established in the resolution. The resolution must include provision for discontinuing the authority by the governing bodies. If the authority is created, the question of discontinuing the authority may be placed on the ballot at the next regular election by a petition signed by qualified electors of a political subdivision within the authority equal in number to ten percent of the votes cast in that political subdivision for the office of governor at the last general election. The question to discontinue the authority requires a majority of the electors voting on the question in that political subdivision for passage. If a majority of the electors voting on the question vote to discontinue the authority in a political subdivision creating the authority, the authority is discontinued. A joint job development authority in which a city is participating may exercise any of the functions and powers of a city job development authority under this chapter.

Source: S.L. 1995, ch. 395, § 1.

CHAPTER 40-58 Urban Renewal Law

40-58-01. Short title. [Repealed]

Repealed by S.L. 1989, ch. 499, § 19.

40-58-01.1. Definitions.

In this chapter, unless the context otherwise requires:

  1. “Area of operation” means the area within the corporate limits of the municipality and the area within five miles [8.05 kilometers] of those limits, except that the term does not include any area that lies within the territorial boundaries of another incorporated city unless a resolution is adopted by the governing body of the other city declaring a need for the inclusion.
  2. “Blighted area” means an area other than a slum area which by reason of the presence of a substantial number of slums, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors, substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use. “Blighted area” does not include any land that has been assessed as agricultural property within the last ten years unless it was located within the interior boundaries of a city for at least ten years.
  3. “Board” or “commission” means a board, commission, department, division, office, body, or other unit of the municipality.
  4. “Bonds” means any bonds, including refunding bonds, notes, interim certificates, certificates of indebtedness, debentures, or other obligations.
  5. “Clerk” means the clerk or other official of a municipality who is the custodian of the official records of the municipality.
  6. “Development” includes the construction of new buildings, structures, or improvements; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, or improvements; the acquisition of equipment; and the clearing and grading of land on industrial or commercial property in a development or renewal area. However, for the purpose of determining amounts to be reimbursed by tax increments under section 40-58-20, only those eligible public costs of development enumerated under section 40-58-20.1 are reimbursable for that purpose.
  7. “Development or renewal area” means industrial or commercial property, a slum or blighted area, or a combination of these properties or areas that the local governing body designates as appropriate for a development or renewal project.
  8. “Development or renewal plan” means a plan for a development or renewal project which:
    1. Conforms to the general plan for the municipality as a whole; and
    2. Is sufficiently complete to indicate any land acquisition, development, demolition and removal of structures, redevelopment, improvements, or rehabilitation as may be proposed to be carried out in the development or renewal area, zoning and planning changes, if any, land uses, maximum densities, building requirements, and the plan’s relationship to definite local objectives relating to appropriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities, and other public improvements.
  9. “Development or renewal project” may include authorized undertakings or activities of a municipality in a development or renewal area for the development of commercial or industrial property or for the elimination and prevention of the development or spread of slums and blight.
  10. “Dwelling” means any building, or structure, or part of a building or structure used and occupied for human habitation or intended to be so used, and includes any appurtenances to the building or structure.
  11. “Federal government” means the United States or any agency or instrumentality, corporate or otherwise, of the United States.
  12. “Governing body” means the city council, the board of city commissioners, or the board of township supervisors.
  13. “Housing authority” means a housing authority created by and established pursuant to the housing authorities law.
  14. “Industrial or commercial property” means unused or underutilized real property that is zoned or used as an industrial or commercial site.
  15. “Mayor” means the mayor of a municipality or other officer or body having the duties customarily imposed upon the executive head of a municipality.
  16. “Municipality” means any incorporated city in the state.
  17. “Obligee” includes any bondholder, agents or trustees for any bondholder, or lessor demising to the municipality property used in connection with a development or renewal project, or any assignee or assignees of the lessor’s interest or any part thereof, and the federal government when it is a party to any contract with the municipality.
  18. “Person” means any individual, firm, partnership, corporation, limited liability company, company, association, joint-stock association, or body politic and includes any trustee, receiver, assignee, or other person acting in a similar representative capacity.
  19. “Public body” means the state or any municipality, township, board, commission, authority, district, or any other political subdivision or public body of the state.
  20. “Public officer” means any officer who is in charge of any department or branch of the government of the municipality relating to health, fire, building regulations, or to other activities concerning dwellings in the municipality.
  21. “Real property” includes all lands, including improvements and fixtures on the land, and property of any nature appurtenant to the land, or used in connection with the land, and every estate, interest, right and use, legal or equitable, in the land, including terms for years and liens by way of judgment, mortgage, or otherwise.
  22. “Rehabilitation” or “conservation” includes the restoration and renewal of all or a part of a slum or blighted area, in accordance with a development or renewal plan, by:
    1. Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements.
    2. Acquisition of real property and demolition or removal of buildings and improvements on the real property if necessary to eliminate unhealthful, unsanitary, or unsafe conditions, lessen density, reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or to otherwise remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities.
    3. Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the purposes of this chapter.
    4. The disposition of any property acquired in the development or renewal area, including sale, initial leasing, or retention by the municipality at its fair value for uses in accordance with the development or renewal plan.
  23. “Slum area” means an area in which there is a predominance of buildings or improvements, whether residential or nonresidential, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals, or welfare.
  24. “Slum clearance and redevelopment” may include:
    1. Acquisition of all or part of a slum area or a blighted area.
    2. Demolition and removal of buildings and improvements.
    3. Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the development or renewal plan.
    4. Making the land available for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality at its fair value for uses in accordance with the development or renewal plan.
  25. “Urban renewal agency” means a public agency created pursuant to section 40-58-16.

Source: S.L. 1989, ch. 499, § 2; 1993, ch. 54, § 106; 2011, ch. 300, § 1.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 300, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

Constitutionality.

North Dakota’s Urban Renewal Law, N.D.C.C. § 40-58-01.1 et seq., was declared to be constitutional because the Act did not violate the gift clause provisions of N.D. Const. art. X, § 18, the requirements for imposing taxes in N.D. Const. art. X, §§ 3 and 5, and the equal protection provisions of the North Dakota Constitution. Haugland v. City of Bismarck, 2012 ND 123, 818 N.W.2d 660, 2012 N.D. LEXIS 125 (N.D. 2012).

Collateral References.

What constitutes “blighted area” within urban renewal and redevelopment statutes, 45 A.L.R.3d 1096.

Liability of urban redevelopment authority or other state or municipal agency or entity for injuries occurring in vacant or abandoned property owned by governmental entity, 7 A.L.R.4th 1129.

Law Reviews.

Urban Redevelopment to Further Aesthetic Considerations: The Changing Constitutional Concepts of Police Power and Eminent Domain, 41 N.D. L. Rev. 316 (1965).

40-58-02. Findings and declarations of necessity.

  1. It is hereby found and declared that there exist in municipalities of the state slum and blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state; that the existence of these areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, aggravates traffic problems, and substantially impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of state policy and state concern in order that the state and its municipalities do not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and, while contributing little to the tax income of the state and its municipalities, consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities. It is further found and declared that certain slum or blighted areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this chapter, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation; that other areas or portions thereof may, through the means provided in this chapter, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils described in this section may be eliminated, remedied, or prevented; and that to the extent feasible salvable slum and blighted areas should be conserved and rehabilitated through voluntary action and the regulatory process.
  2. It is further found and declared that there exist in municipalities of the state conditions of unemployment, underemployment, and joblessness detrimental to the economic growth of the state economy; that it is appropriate to implement economic development programs both desirable and necessary to eliminate the causes of unemployment, underemployment, and joblessness for the benefit of the state economy; and that tax increment financing is an economic development program designed to facilitate projects that create economic growth and development.

Source: S.L. 1955, ch. 281, § 2; R.C. 1943, 1957 Supp., § 40-5802; S.L. 1989, ch. 499, § 3; 2007, ch. 293, § 27.

Effective Date.

The 2007 amendment of this section by section 27 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

Notes to Decisions

Constitutionality.

The stimulation of commercial growth and removal of economic stagnation sought by this chapter are objectives that satisfy the public use and purpose requirement of N.D. Const. Art. I, § 16 and U.S. Const. Amend. V. City of Jamestown v. Leevers Supermarkets, 552 N.W.2d 365, 1996 N.D. LEXIS 191 (N.D. 1996).

Public Use.

Where the trial court made no finding whether the primary object of development project was for the economic welfare of city’s downtown and its residents, rather than for the benefit of private interests, the case was remanded for the trial court to address the question. City of Jamestown v. Leevers Supermarkets, 552 N.W.2d 365, 1996 N.D. LEXIS 191 (N.D. 1996).

40-58-03. Encouragement of private enterprise.

A municipality, to the greatest extent it determines to be feasible in carrying out this chapter, shall afford maximum opportunity, consistent with the sound needs of the municipality as a whole, to the development, rehabilitation, or redevelopment of the development or renewal area by private enterprise. A municipality shall give consideration to this objective in exercising its powers under this chapter, including the formulation of a workable program, the approval of development or renewal plans consistent with the general plan for the municipality, the adoption and enforcement of ordinances as provided for in section 40-58-18, the exercise of its zoning powers, the enforcement of other laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, the disposition of any property acquired, and the provision of necessary public improvements.

Source: S.L. 1955, ch. 281, § 3; R.C. 1943, 1957 Supp., § 40-5803; S.L. 1989, ch. 499, § 4.

40-58-04. Workable program.

A municipality for the purposes of this chapter may formulate a workable program for utilizing appropriate private and public resources, including those specified in section 40-58-18, to facilitate the development of industrial or commercial properties, eliminate and prevent the development or spread of slums and urban blight, encourage needed urban rehabilitation, provide for the redevelopment of slum and blighted areas, or undertake these activities or other feasible municipal activities as may be suitably employed to achieve the objectives of the workable program. The workable program may include provision for:

  1. The development of industrial or commercial properties;
  2. The prevention of the spread of blight into areas of the municipality which are free from blight through diligent enforcement of housing, zoning, and occupancy controls and standards;
  3. The rehabilitation or conservation of slum and blighted areas or portions of those areas by replanning, removing congestion, providing parks, playgrounds, and other public improvements, by encouraging voluntary rehabilitation and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and
  4. The clearance and redevelopment of slum areas or portions of those areas.

Source: S.L. 1955, ch. 281, § 4; R.C. 1943, 1957 Supp., § 40-5804; S.L. 1989, ch. 499, § 5.

40-58-05. Finding of necessity by governing body.

A municipality may not exercise any of the powers conferred upon municipalities by this chapter until its governing body adopts a resolution finding that:

  1. One or more slum or blighted areas or industrial or commercial properties exist in the municipality; and
  2. The development, rehabilitation, conservation, or redevelopment, or a combination thereof, of the area or properties is necessary in the interest of the public economy, health, safety, morals, or welfare of the residents of the municipality.

Source: S.L. 1955, ch. 281, § 5; R.C. 1943, 1957 Supp., § 40-5805; S.L. 1989, ch. 499, § 6.

Notes to Decisions

Judicial Review.

The trial court could review evidence presented at trial in addition to the evidence presented to the city council at the public hearing, in deciding whether the city council abused its discretion in finding taking was necessary. City of Jamestown v. Leevers Supermarkets, 552 N.W.2d 365, 1996 N.D. LEXIS 191 (N.D. 1996).

Public Use.

Where the trial court made no finding whether the primary object of development project was for the economic welfare of city’s downtown and its residents, rather than for the benefit of private interests, the case was remanded for the trial court to address the question. City of Jamestown v. Leevers Supermarkets, 552 N.W.2d 365, 1996 N.D. LEXIS 191 (N.D. 1996).

Resolutions.

Resolution was not legally invalid because the city council said development plan was consistent with the sound “needs” of the municipality rather than the plan was “necessary” for the welfare of the municipality. City of Jamestown v. Leevers Supermarkets, 552 N.W.2d 365, 1996 N.D. LEXIS 191 (N.D. 1996).

40-58-06. Preparation, adoption, and revision of development or renewal plans.

  1. A municipality may not approve a development or renewal plan for a development or renewal area unless the governing body by resolution determines that the area is a slum or blighted area or consists of industrial or commercial property, or a combination of those areas or properties, and designates the area or properties as appropriate for a development or renewal project. The local governing body may not approve a development or renewal plan until a general plan for the municipality is prepared. For this purpose and other municipal purposes, a municipality may prepare, adopt, and revise a general plan for the physical development of the municipality as a whole giving due regard to the environs and metropolitan surroundings, establish and maintain a planning commission for this purpose and related municipal planning activities, and make available and appropriate necessary funds for these purposes. A municipality may not acquire real property for a development or renewal project unless the governing body approves the development or renewal plan in accordance with subsection 4.
  2. The municipality may prepare or cause to be prepared a development or renewal plan, or any person or agency, public or private, may submit a development or renewal plan to a municipality. Prior to its approval of a development or renewal plan, the governing body shall submit the plan to the planning commission of the municipality, if any, for review and recommendations as to its conformity with the general plan for the development of the municipality as a whole. However, if the development or renewal plan relates only to proposed development of industrial or commercial property, the governing body is not required to submit the plan to the planning commission unless the proposed development is not consistent with the comprehensive city plan. The planning commission shall submit its written recommendations with respect to the proposed development or renewal plan to the governing body within thirty days after receipt of the plan for review. Upon receipt of the recommendations of the planning commission, or if no recommendations are received within the thirty-day period, the governing body may proceed with the hearing on the proposed development or renewal plan prescribed by subsection 3.
  3. The governing body shall hold a public hearing on a development or renewal plan or substantial modification of an approved plan, after public notice of the hearing is provided by publication in a newspaper having a general circulation in the area of operation of the municipality. The notice must describe the time, date, place, and purpose of the hearing, generally identify the development or renewal area covered by the plan, and outline the general scope of the development or renewal project under consideration.
  4. Following the hearing, the governing body may approve a development or renewal plan if it finds that:
    1. A feasible method exists for the location of families who will be displaced from the development or renewal area in decent, safe, and sanitary dwelling accommodations within their means and without undue hardship to those families;
    2. The development or renewal plan conforms to the general plan of the municipality as a whole; and
    3. The development or renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development, rehabilitation, or redevelopment of the development or renewal area by private enterprise.
  5. A development or renewal plan may be modified at any time; provided, that if modified after the lease or sale by the municipality of real property in the development or renewal project area, the modification is subject to the rights at law or in equity as a lessee or purchaser, or the lessee’s or purchaser’s successor or successors in interest, is entitled to assert. Any proposed modification which will substantially change the development or renewal plan as previously approved by the governing body is subject to the requirements of this section, including the requirement of a public hearing, before it may be approved.
  6. Upon the approval of a development or renewal plan by the municipality, the provisions of the plan governing the future use and building requirements applicable to the property covered by the plan control the future use of and building on the property.

Source: S.L. 1955, ch. 281, § 6; R.C. 1943, 1957 Supp., § 40-5806; S.L. 1965 Sp., ch. 6, § 1; 1989, ch. 499, § 7.

Notes to Decisions

Compliance.

Because the record did not reflect that a city passed an appropriate resolution for a substantial change either at the original city commission meeting or at a continued meeting, remand was necessary to resolve whether there was an appropriate resolution to add additional city blocks to a renewal area. If there was not an appropriate resolution, then the city was precluded from diverting tax increment funds for those additional blocks for the period from the original modification to the subsequent modification. Haugland v. City of Bismarck, 2012 ND 123, 818 N.W.2d 660, 2012 N.D. LEXIS 125 (N.D. 2012).

40-58-07. Powers.

A municipality has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the power:

  1. To authorize or undertake and carry out development or renewal projects within its area of operation; to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under this chapter; and to disseminate industrial or commercial development, slum clearance, and urban renewal information.
  2. To provide, arrange, or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities, or other facilities for or in connection with a development or renewal project; to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of a development or renewal project, and to include in any contract let in connection with the project, provisions to fulfill those conditions as it may deem reasonable and appropriate.
  3. Within its area of operation, to enter upon any building or property in any development or renewal area in order to make surveys, appraisals, soundings, or test borings, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire by purchase, lease, option, gift, grant, bequest, devise, or otherwise, any real property or personal property for its administrative purposes together with any property improvements; to hold, improve, clear, or prepare for development or redevelopment any such property; to mortgage, pledge, hypothecate, or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums for the insurance; and to enter into any contracts necessary to effectuate the purposes of this chapter; provided, however, that no statutory provision with respect to the acquisition, clearance, or disposition of property by public bodies restricts a municipality or other public body exercising powers under this subsection, in the exercise of those functions with respect to a development or renewal project, unless the legislative assembly shall specifically so state.
  4. To invest development or renewal project funds held in reserves or sinking funds, or any of those funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control; to redeem bonds issued pursuant to section 40-58-10 at the established redemption price or to purchase bonds at less than redemption price, all bonds so redeemed or purchased to be canceled.
  5. To borrow money and to apply for and accept advances, loans, grants, contributions, and any other form of financial assistance from the federal government, the state, county, or other public body, or from any sources, public or private, for the purposes of this chapter, and to give such security as may be required and to enter into and carry out contracts in connection therewith. A municipality may include in any contract for financial assistance with the federal government for a development or renewal project any conditions imposed pursuant to federal law as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of this chapter.
  6. Within its area of operation, to make or cause to have made all plans necessary to the carrying out of the purposes of this chapter and to contract with any person, public or private, in making and carrying out those plans and to adopt or approve, modify, and amend those plans. The plans may include:
    1. A general plan for the locality as a whole.
    2. Development or renewal plans.
    3. Plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements.
    4. Plans for the enforcement of state and local laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements.
    5. Appraisals, title searches, surveys, studies, and other preliminary plans and work necessary to prepare for the undertaking of development or renewal projects. The municipality may develop, test, and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of slums and urban blight, and to apply for, accept, and utilize grants of funds from the federal government for such purposes.
  7. To prepare plans and provide reasonable assistance for the relocation of families displaced from a development or renewal area.
  8. To appropriate funds and make expenditures that are necessary to carry out the purposes of this chapter, and to levy taxes within the limitations of the capital improvements fund under section 57-15-38 and to levy assessments for those purposes; to close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places; to plan or replan or zone or rezone any part of the municipality or make exceptions from building regulations; and to enter into agreements with a housing authority or an urban renewal agency vested with urban renewal project powers under section 40-58-15, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by the municipality pursuant to any of the powers granted by this chapter.
  9. Within its area of operation, to organize, coordinate, and direct the administration of this chapter as those provisions apply to the municipality in order that the objectives of remedying slum and blighted areas and preventing the causes of those areas and facilitating the development of industrial or commercial properties within the municipality may be most effectively promoted and achieved, and to establish new offices of the municipality or to reorganize existing offices in order to carry out that purpose most effectively.
  10. To exercise all or any part or combination of the powers granted by this section.

Source: S.L. 1955, ch. 281, § 7; R.C. 1943, 1957 Supp., § 40-5807; S.L. 1989, ch. 499, § 8; 2007, ch. 293, § 28; 2015, ch. 439, § 58, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 58 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

The 2007 amendment of this section by section 28 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

Notes to Decisions

Subdivision 8.

—Payment of Special Assessments.

By giving an urban renewal agency the power to levy and collect taxes the legislature impliedly authorized the payment of special assessments due thereon by the agency. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

Collateral References.

Validity and construction of statute or ordinance providing for repair or destruction of residential building by public authorities at owner’s expense, 43 A.L.R.3d 916.

40-58-08. Eminent domain. [Repealed]

Repealed by S.L. 2007, ch. 293, § 46.

Effective Date.

The repeal of this section by section 46 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

40-58-09. Disposal of property in development or renewal area.

  1. A municipality may sell, lease, or otherwise transfer real property or any interest in real property acquired by it, and may enter into contracts with respect to the real property, in a development or renewal area for residential, recreational, commercial, industrial, or other uses or for public use, or may retain the property or interest for public use, in accordance with the development or renewal plan, subject to such covenants, conditions, and restrictions, including covenants running with the land, as it may deem to be necessary or desirable to assist in preventing the development or spread of future slums or blighted areas, to facilitate the development of industrial or commercial properties, or to otherwise carry out the purposes of this chapter; provided, that the sale, lease, other transfer, or retention, and any agreement relating thereto, may be made only after the approval of the development or renewal plan by the governing body. The purchasers or lessees and their successors and assigns must be obligated to devote the real property only to the uses specified in the development or renewal plan, and may be obligated to comply with any other requirements that the municipality determines are in the public interest, including the obligation to begin within a reasonable time any improvements on the real property required by the development or renewal plan. The real property or interest must be sold, leased, otherwise transferred, or retained at not less than its fair value for uses in accordance with the development or renewal plan. In determining the fair value of real property for uses in accordance with the development or renewal plan, a municipality shall take into account and give consideration to the uses provided in the plan; the restrictions upon, and the covenants, conditions, and obligations assumed by the purchaser or lessee or by the municipality retaining the property; and the objectives of the plan for the development of industrial or commercial properties and the prevention of the recurrence of slum or blighted areas. The municipality in any instrument of conveyance to a private purchaser or lessee may provide that the purchaser or lessee may not sell, lease, or otherwise transfer the real property without the prior written consent of the municipality until the purchaser or lessee has completed the construction of any and all improvements which the purchaser or lessee is obligated to construct on the real property. Real property acquired by a municipality which, in accordance with the provisions of the development or renewal plan, is to be transferred, must be transferred as rapidly as feasible in the public interest consistent with the carrying out of the provisions of the development or renewal plan. The inclusion in any contract or conveyance to a purchaser or lessee of any such covenants, restrictions, or conditions, including the incorporation by reference of the provisions of a development or renewal plan or any part of the plan, does not prevent the filing of the contract or conveyance in the land records of the recorder in a manner that affords actual or constructive notice of the contract or conveyance.
  2. A municipality may dispose of real property in a development or renewal area to private persons in a manner that appropriately carries out the purposes and provisions of this chapter. Thereafter, the municipality may execute the contract in accordance with the provisions of subsection 1 and deliver deeds, leases, and other instruments and take all steps necessary to effectuate the contract.
  3. A municipality may temporarily operate and maintain real property acquired in a development or renewal area pending the disposition of the property for development or redevelopment, without regard to the provisions of subsection 1, for any uses and purposes as may be deemed desirable even though not in conformity with the development or renewal plan.

Source: S.L. 1955, ch. 281, § 9; R.C. 1943, 1957 Supp., § 40-5809; S.L. 1989, ch. 499, § 10; 2001, ch. 120, § 1.

40-58-10. Issuance of bonds.

  1. A municipality may issue bonds from time to time in its discretion to finance the undertaking of any development or renewal project, including the payment of principal and interest upon any advances for surveys and plans for development or renewal projects, and may issue refunding bonds for the payment or retirement of bonds previously issued by it. The bonds must be made payable, as to both principal and interest, solely from the income, proceeds, revenues, and funds of the municipality derived from or held in connection with its undertaking and carrying out of development or renewal projects; provided, however, that the payment of bonds, both as to principal and interest, may be further secured by a pledge of any loan, grant, or contribution from the federal government or other source, in aid of any development or renewal projects of the municipality, and by a mortgage of all or any part of a development or renewal project, title to which is in the municipality.
  2. Bonds issued under this section do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and are not subject to any other law or charter relating to the authorization, issuance, or sale of bonds. Bonds issued under this chapter are declared to be issued for an essential public and governmental purpose and, together with interest and income, are exempt from all taxation.
  3. Bonds issued under this section must be authorized by resolution or ordinance of the governing body and may be issued in one or more series and must bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, resulting in an average annual net interest cost not exceeding twelve per centum per annum on those issues which are sold at private sale. The bonds must be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such places, and be subject to such terms of redemption with or without premium, be secured in such manner, and have such other characteristics, as may be provided by the resolution or trust indenture or mortgage issued pursuant to the resolution.
  4. The bonds may be sold at not less than par at public sales held after notice published prior to the sale in a newspaper having a general circulation in the area of operation and in any other medium of publication as the municipality may determine or may be exchanged for other bonds on the basis of par; provided, that the bonds may be sold to the federal government at private sale at not less than par, and, in the event less than all of the authorized principal amount of the bonds is sold to the federal government, the balance may be sold at private sale at not less than par at an interest cost to the municipality of not to exceed the interest cost to the municipality of the portion of the bonds sold to the federal government. The bonds may also be sold at private sale if the obligations do not exceed the total sum of one hundred thousand dollars. There is no interest rate ceiling on issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities.
  5. If a public official of the municipality whose signature appears on any bonds or coupons issued under this chapter ceases to be a public official before the delivery of the bonds, the signature is, nevertheless, valid and sufficient for all purposes, as if the official had remained in office until the delivery. Any law to the contrary notwithstanding, any bonds issued pursuant to this chapter are fully negotiable.
  6. In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security for the bond, any bond reciting in substance that it has been issued by the municipality in connection with a development or renewal project is conclusively deemed to have been issued for that purpose and the project is conclusively deemed to have been planned, located, and carried out in accordance with this chapter.

Source: S.L. 1955, ch. 281, § 10; R.C. 1943, 1957 Supp., § 40-5810; S.L. 1971, ch. 249, § 22; 1981, ch. 269, § 20; 1989, ch. 499, § 11.

40-58-11. Bonds as legal investments.

All banks, trust companies, bankers, savings banks and institutions, savings and loan associations, investment companies, and other persons carrying on a banking or investment business and all executors, administrators, curators, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds or other obligations issued by a municipality pursuant to this chapter or by any urban renewal agency or housing authority vested with urban renewal project powers under section 40-58-15. However, the bonds and other obligations must be secured by an agreement between the issuer and the federal government in which the issuer agrees to borrow from the federal government and the federal government agrees to lend to the issuer, prior to the maturity of the bonds or other obligations, moneys in an amount which together with any other moneys irrevocably committed to the payment of interest on the bonds or other obligations will suffice to pay the principal of such bonds or other obligations with interest to maturity thereon, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal of and the interest on the bonds or other obligations at their maturity. The bonds and other obligations are authorized security for all public deposits. This section does not relieve any person of any duty of exercising reasonable care in selecting securities.

Source: S.L. 1955, ch. 281, § 11; R.C. 1943, 1957 Supp., § 40-5811; S.L. 1983, ch. 319, § 29.

40-58-12. Property exempt from taxes and from levy and sale by virtue of an execution.

  1. All property of a municipality, including funds, owned or held by it for the purposes of this chapter is exempt from levy and sale by virtue of an execution, and no execution or other judicial process may issue against the same nor may judgment against a municipality be a charge or lien upon the property; provided, however, that the provisions of this section do not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this chapter by a municipality on its rents, fees, grants, or revenues from development or renewal projects.
  2. The property of a municipality, acquired or held for the purposes of this chapter, is declared to be public property used for essential public and governmental purposes and the property is exempt from all taxes of the municipality, the county, the state, or any political subdivision of the state; provided, that this tax exemption terminates when the municipality sells, leases, or otherwise disposes of the property in a development or renewal area to a purchaser or lessee which is not a public body entitled to tax exemption with respect to the property.

Source: S.L. 1955, ch. 281, § 12; R.C. 1943, 1957 Supp., § 40-5812; S.L. 1989, ch. 499, § 12.

Notes to Decisions

Payment of Special Assessments.

This section does not exempt an urban renewal agency from the paying of special assessments due and payable on lands which are the subject of urban renewal condemnation actions. Southwest Fargo Urban Renewal Agency v. Lenthe, 149 N.W.2d 373, 1967 N.D. LEXIS 139 (N.D. 1967).

40-58-13. Cooperation by public bodies.

  1. For the purpose of aiding in the planning, undertaking, or carrying out of a development or renewal project located within the area in which it is authorized to act, any public body may, upon any terms, with or without consideration, as it may determine:
    1. Dedicate, sell, convey, or lease any of its interest in any property or grant easements, licenses, or other rights or privileges therein to a municipality;
    2. Incur the entire expense of any public improvements made by the public body in exercising the powers granted in this section;
    3. Do any and all things necessary to aid or cooperate in the planning or carrying out of a development or renewal plan;
    4. Lend, grant, or contribute funds to a municipality;
    5. Enter into agreements which may extend over any period, notwithstanding any law to the contrary with a municipality or other public body relating to action to be taken pursuant to any of the powers granted by this chapter, including the furnishing of funds or other assistance in connection with a development or renewal project; and
    6. Cause public buildings and public facilities, including parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake to be furnished; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets, roads, sidewalks, ways, or other places; plan or replan or zone or rezone any part of the public body or make exceptions from building regulations; and cause administrative and other services to be furnished to the municipality. If at any time title to or possession of any development or renewal project is held by any public body or governmental agency, other than the municipality, which is authorized by law to engage in the undertaking, carrying out, or administration of development or renewal projects, including the federal government, the provisions of the agreements referred to in this section inure to the benefit of and may be enforced by the public body or governmental agency. As used in this subsection, the term “municipality” shall also include an urban renewal agency or a housing authority vested with authority pursuant to section 40-58-15.
  2. Any sale, conveyance, lease, or agreement provided for in this section may be made by a public body without appraisal, public notice, advertisement, or public bidding.
  3. For the purpose of aiding in the planning, undertaking, or carrying out of the authority of an urban renewal agency or a housing authority, a municipality may in addition to its other powers and upon any terms, with or without consideration, as it may determine do and perform any or all of the actions or things which, by the provisions of subsection 1, a public body is authorized to do or perform, including the furnishing of financial and other assistance.
  4. For the purposes of this section, or for the purpose of aiding in the planning, undertaking, or carrying out of a development or renewal project of a municipality, the municipality may in addition to any authority to issue bonds pursuant to section 40-58-10 issue and sell its general obligation bonds. Any bonds issued by a municipality pursuant to this section must be issued in the manner and within the limitations prescribed by the laws of this state for the issuance and authorization of bonds by the municipality for public purposes generally.

Source: S.L. 1955, ch. 281, § 13; R.C. 1943, 1957 Supp., § 40-5813; S.L. 1989, ch. 499, § 13.

40-58-14. Title of purchaser.

Any instrument executed by a municipality and purporting to convey any right, title, or interest in any property under this chapter shall be conclusively presumed to have been executed in compliance with the provisions of this chapter insofar as title or other interest of any bona fide purchasers, lessees, or transferees of such property is concerned.

Source: S.L. 1955, ch. 281, § 14; R.C. 1943, 1957 Supp., § 40-5814.

40-58-15. Exercise of urban renewal project powers.

  1. A municipality may itself exercise its urban renewal project powers, as defined by this section, or may, if the governing body by resolution determines the action to be in the public interest, elect to have those powers exercised by the urban renewal agency created by section 40-58-16 or by the housing authority, if one exists or is subsequently established in the community. In the event the governing body makes that determination, the urban renewal agency or the housing authority, as the case may be, is vested with all of the urban renewal project powers in the same manner as though those powers were conferred on the agency or authority instead of the municipality. However, an urban renewal agency or housing authority may not exercise any rights, powers, functions, and duties of a municipality under this chapter which relate to the development of industrial or commercial property under section 40-58-20.1. If the governing body does not elect to make a determination under this subsection, the municipality may exercise its urban renewal project powers through a board or commissioner or through any officers of the municipality as the governing body may by resolution determine.
  2. As used in this section, the term “urban renewal project powers” includes the rights, powers, functions, and duties of a municipality under this chapter, except the following:
    1. The power to determine an area to be industrial or commercial property or a slum or blighted area or combination thereof and to designate the property or area as appropriate for a development or renewal project;
    2. The power to approve and amend development or renewal plans and to hold any public hearings required with respect to those plans;
    3. The power to establish a general plan for the locality as a whole;
    4. The power to formulate a workable program under section 40-58-04;
    5. The powers, duties, and functions referred to in section 40-58-18;
    6. The power to make the determinations and findings provided for in sections 40-58-03 and 40-58-05 and subsection 4 of section 40-58-06 40-58-06;
    7. The power to issue general obligation bonds; and
    8. The power to appropriate funds, to levy taxes within the limitations of the capital improvements fund under section 57-15-38 and to levy assessments, and to exercise other powers provided for in subsection 8 of section 40-58-07.

Source: S.L. 1955, ch. 281, § 15; R.C. 1943, 1957 Supp., § 40-5815; S.L. 1989, ch. 499, § 14; 2015, ch. 439, § 59, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 59 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-58-16. Urban renewal agency.

  1. There is created in each municipality a public body corporate and politic to be known as the “urban renewal agency” of the municipality; provided, that the agency may not transact any business or exercise its powers under this chapter until or unless the local governing body has made the finding prescribed in section 40-58-05 and has elected to have the urban renewal project powers exercised by an urban renewal agency as provided in section 40-58-15.
  2. If the urban renewal agency is authorized to transact business and exercise powers under this chapter, the mayor, by and with the advice and consent of the local governing body, shall appoint a board of commissioners of the urban renewal agency which must consist of five commissioners. The term of office of each commissioner is one year.
  3. A commissioner may not receive compensation for services but is entitled to the necessary expenses, including traveling expenses, incurred in the discharge of the commissioner’s duties. Each commissioner shall hold office until a successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner must be filed with the clerk of the municipality and the certificate is conclusive evidence of the due and proper appointment of the commissioner.
  4. The powers of an urban renewal agency must be exercised by the commissioners of the agency. A majority of the commissioners constitutes a quorum for the purpose of conducting business and exercising the powers of the agency and for all other purposes. Action may be taken by the agency upon a vote of a majority of the commissioners present, unless in any case the bylaws require a larger number. Approval of the payment of an account or claim must be recorded in the record of the agency’s proceedings and this is sufficient to indicate approval without requiring a majority of the commissioners to sign or initial the voucher or order for payment.
  5. Any persons may be appointed as commissioners if they reside within the area of operation of the agency which shall be coterminous with the area of operation of the municipality and are otherwise eligible for appointments under this chapter. The mayor shall designate a chairman and vice chairman from among the commissioners. An agency may employ an executive director, technical experts, and such other agents and employees, permanent and temporary, as it may require, and determine their qualifications, duties, and compensation. For legal services it may require, an agency may employ or retain its own counsel and legal staff. An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March thirty-first of each year a report of its activities for the preceding calendar year, which report must include a complete financial statement setting forth its assets, liabilities, income, and operating expense as of the end of the calendar year. At the time of filing the report, the agency shall publish in a newspaper of general circulation in the community a notice to the effect that the report has been filed with the municipality and that the report is available for inspection during business hours in the office of the auditor and in the office of the agency.
  6. For inefficiency or neglect of duty or misconduct in office, a commissioner may be removed only after a hearing and after the commissioner has been given a copy of the charges at least ten days prior to the hearing and has had an opportunity to be heard in person or by counsel.

Source: S.L. 1955, ch. 281, § 16; R.C. 1943, 1957 Supp., § 40-5816; S.L. 1975, ch. 366, § 8; 1989, ch. 499, § 15.

40-58-17. Interested public officials, commissioners, or employees.

No public official or employee of a municipality or board or commission thereof, and no commissioner or employee of a housing authority or urban renewal agency which has been vested by a municipality with urban renewal project powers under section 40-58-15 shall voluntarily acquire any interest, direct or indirect, in any development or renewal project, or in any property included or planned to be included in any development or renewal project of the municipality or in any contract or proposed contract in connection with the development or renewal project. If the acquisition is not voluntary, the interest acquired must be immediately disclosed in writing to the governing body and the disclosure must be entered upon the minutes of the governing body. If an official, commissioner, or employee presently owns or controls, or owned or controlled within the preceding two years, any interest, direct or indirect, in any property which that official, commissioner, or employee knows is included or planned to be included in a development or renewal project, that official, commissioner, or employee shall immediately disclose this act in writing to the governing body, and the disclosure must be entered upon the minutes of the governing body, and any such official, commissioner, or employee may not participate in any action by the municipality or board or commission thereof, housing authority, or urban renewal agency affecting the property. Any disclosure required to be made by this section to the governing body must be concurrently made to a housing authority or urban renewal agency which has been vested with urban renewal project powers by the municipality pursuant to the provisions of section 40-58-15. A commissioner or other officer of any housing authority, urban renewal agency, board, or commission exercising powers pursuant to this chapter may not hold any other public office under the municipality other than the commissionership or office with respect to the housing authority, urban renewal agency, board, or commission. Any violation of the provisions of this section constitutes misconduct in office.

Source: S.L. 1955, ch. 281, § 17; R.C. 1943, 1957 Supp., § 40-5817; S.L. 1989, ch. 499, § 16.

40-58-18. Ordinances relating to repair, closing, and demolition of dwellings unfit for human habitation.

  1. If a municipality finds that there exist in the municipality dwellings which are unfit for human habitation due to dilapidation, defects increasing the hazards of fire, accidents or other calamities, lack of ventilation, light or sanitary facilities, or due to other conditions, including those set forth in subsection 3, rendering those dwellings unsafe or unsanitary, or dangerous or detrimental to the health, safety, or morals, or otherwise inimical to the welfare of the residents of the municipality, the municipality may require or cause the repair, closing, or demolition or removal of those dwellings in the manner provided by this section.
  2. Upon the adoption of an ordinance finding that dwelling conditions of the character described in subsection 1 exist within a municipality, the governing body of the municipality may adopt ordinances relating to the dwellings within the municipality. The ordinances must include the following provisions:
    1. That a public officer be designated or appointed to exercise the powers prescribed by the ordinances.
    2. If a petition is filed with the public officer or by at least five residents of the municipality charging that any dwelling is unfit for human habitation or whenever it appears to the public officer on the public officer’s own motion that any dwelling is unfit for human habitation, the public officer shall, if the public officer’s preliminary investigation discloses a basis for those charges, issue and cause to be served upon the owner, every mortgagee of record and all parties in interest in the dwelling, including persons in possession, a complaint stating the charges in that respect. The complaint must contain a notice that a hearing will be held before the public officer or the public officer’s designated agent at a place designated in the complaint not less than ten days nor more than thirty days after the serving of the complaint; that the owner, mortgagee, and parties in interest must be given the right to file an answer to the complaint and to appear in person, or otherwise, and give testimony at the place and time designated in the complaint; and that the rules of evidence are not controlling in hearings before the public officer.
    3. If, after the notice and hearing, the public officer determines that the dwelling under consideration is unfit for human habitation, the public officer shall state in writing the findings of fact in support of the determination and shall issue and cause to be served upon the owner of the dwelling an order which:
      1. If the repair, alteration, or improvement of the dwelling can be made at a reasonable cost in relation to the value of the dwelling, the ordinance of the municipality shall fix a certain percentage of the cost as being reasonable for that purpose, requires the owner, within the time specified in the order, to repair, alter, or improve the dwelling to render it fit for human habitation or to vacate and close the dwelling as a human habitation; or
      2. If the repair, alteration, or improvement of the dwelling cannot be made at a reasonable cost in relation to the value of the dwelling, the ordinance of the municipality shall fix a certain percentage of the cost as being reasonable for that purpose, requires the owner, within the time specified in the order, to remove or demolish the dwelling.
    4. If the owner fails to comply with an order to repair, alter, or improve or to vacate and close the dwelling, the public officer may cause the dwelling to be repaired, altered, or improved, or to be vacated and closed.
    5. If the owner fails to comply with an order to remove or demolish the dwelling, the public officer may cause the dwelling to be removed or demolished.
    6. The amount of the cost of any repairs, alterations, or improvements, or vacating and closing, or removal or demolition by the public officer constitutes a lien against the real property upon which the cost was incurred and the lien, including an allowance of the public officer’s costs and necessary attorney’s fees, may be foreclosed in judicial proceedings in the manner provided by law for loans secured by liens on real property. If the dwelling is removed or demolished by the public officer, the public officer shall sell the materials of the dwelling and credit the proceeds of the sale against the cost of the removal or demolition. Any balance remaining must be paid to the parties entitled to it as determined by proper judicial proceedings instituted by the public officer after deducting the costs of the judicial proceedings, including necessary attorney’s fees incurred in those proceedings by the public officer, as determined by the court.
  3. An ordinance adopted by a municipality pursuant to this section must provide that the public officer may determine that a dwelling is unfit for human habitation if the public officer finds that conditions exist in the dwelling which are dangerous or injurious to the health, safety, or morals of the occupants of the dwelling, the occupants of neighboring dwellings, or other residents of the municipality, or which have a blighting influence on properties in the area. Those conditions may include defects in the dwelling increasing the hazards of fire, accident, or other calamities; lack of adequate ventilation, light, or sanitary facilities; dilapidation; disrepair; structural defects; uncleanliness; overcrowding; inadequate ingress and egress; inadequate drainage; or any violation of health, fire, building, or zoning regulations, or any other laws or regulations relating to the use of land and the use and occupancy of building and improvements. The ordinance may provide additional standards to guide the public officer or the public officer’s agents or employees in determining the fitness of a dwelling for human habitation.
  4. Complaints or orders issued by a public officer pursuant to an ordinance adopted under this section must be served upon persons either personally or by registered or certified mail, but if the location of those persons is unknown and cannot be ascertained by the public officer in the exercise of reasonable diligence, and the public officer shall make an affidavit to that effect, then the serving of the complaint or order upon those persons may be made by publishing the complaint or order once each week for two consecutive weeks in a newspaper printed and published in the municipality, or, in the absence of such newspaper, in one printed and published in the county and circulating in the municipality in which the dwellings are located. A copy of the complaint or order must be posted in a conspicuous place on the premises affected by the complaint or order. A copy of the complaint or order must also be filed with the clerk of the county in which the dwelling is located and the filing of the complaint or order has the same force and effect as other lis pendens notices provided by law.
  5. Any person affected by an order issued by the public officer may petition the district court, in accordance with the procedure provided in section 28-34-01, for an injunction restraining the public officer from carrying out the provisions of the order, and the court may, upon that petition, issue a temporary injunction restraining the public officer pending the final disposition of the cause. Hearings must be held by the court on the petitions within twenty days, or as soon thereafter as possible, and must be given preference over other matters on the court’s calendar. The court shall hear and determine the issues raised and enter a final order or decree in the proceeding. In the proceeding, the findings of the public officer as to facts, if supported by evidence, are conclusive. The court may assess costs. The remedies provided under this section are exclusive remedies and a person affected by an order of the public officer may not recover any damages for action taken pursuant to any order of the public officer, or because of compliance by that person with any order of the public officer.
  6. An ordinance adopted by the governing body of the municipality may authorize the public officer to exercise those powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to other authority granted under this section:
    1. To investigate the dwelling conditions in the municipality in order to determine which dwellings are unfit for human habitation;
    2. To administer oaths and affirmations, examine witnesses, and receive evidence;
    3. To enter any premises for the purpose of making examinations, provided that entry must be made in a manner that causes the least possible inconvenience to the persons in possession, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted;
    4. To appoint and fix the duties of such officers, agents, and employees as the public officer deems necessary to carry out the purposes of the ordinance; and
    5. To delegate any of the public officer’s functions and powers under the ordinance to such officers, agents, and employees as the public officer may designate.
  7. The governing body of any municipality adopting an ordinance under this section shall as soon as possible prepare an estimate of the annual expenses or costs to provide the equipment, personnel, and supplies necessary for periodic examinations and investigations of the dwellings in the municipality for the purpose of determining the fitness of the dwellings for human habitation, and for the enforcement and administration of its ordinance or ordinances adopted under this section.
  8. This section may not be construed to abrogate or impair the powers of the courts or of any department of any municipality to enforce any provisions of its charter or its ordinances or regulations, nor to prevent or punish violations thereof; and the powers conferred by this section are in addition and supplemental to the powers conferred by any other law.
  9. This section may not be construed to impair or limit in any way the power of the municipality to define and declare nuisances and to cause their removal or abatement, by summary proceedings or otherwise.
  10. The governing body of a city may adopt ordinances prescribing minimum standards for the use and occupancy of dwellings throughout the city and to prevent the use or occupancy of any dwelling which is injurious to the public health, safety, morals, or welfare.

Source: S.L. 1955, ch. 281, § 18; R.C. 1943, 1957 Supp., § 40-5818; S.L. 1983, ch. 82, § 85; 1989, ch. 83, § 17; 1989, ch. 499, § 17.

40-58-19. Definitions. [Repealed]

Repealed by S.L. 1989, ch. 499, § 19.

40-58-20. Tax increment financing.

  1. At any time after the governing body of a municipality has approved a development or renewal plan for any development or renewal area and has filed that plan with the department of commerce division of community services, it may request the county auditor and treasurer to compute, certify, and remit tax increments resulting from the development or renewal of the area in accordance with the plan and any modifications thereof, and the county auditor and treasurer shall do so in accordance with this section.
    1. For a tax increment district established before July 1, 2011, the base year for tax increments computed for a development or renewal area under this section or section 40-58-20.1 may not be used for more than twenty-five taxable years without the governing body of the municipality establishing a new base year using taxable values, established as of February first of the following year, which are not more than fifteen years old. Regardless of length of the initial district, the new base year may be used to compute tax increments for up to an additional fifteen years after which time the tax increment district must be closed, except that the original base year for tax increments pledged for an indebtedness incurred before July 1, 2011, may continue until the indebtedness is paid.
    2. For a tax increment district established after July 1, 2011, the base year for tax increments computed for a development or renewal area under this section or section 40-58-20.1 may not be used for more than twenty-five taxable years without the governing body of the municipality establishing a new base year using taxable values, established as of February first of the following year, which are not more than fifteen years old. The new base year may be used to compute tax increments for up to an additional five years after which time the tax increment district must be closed.
  2. The auditor shall compute and certify the original taxable value of each lot and parcel of real estate in the area, as last assessed and equalized before the date of the request, including the taxable value of any lot or parcel previously acquired by the municipality or its urban renewal agency, as last assessed and equalized before it was acquired. However, any real property acquired by the city or the city’s urban renewal agency prior to July 1, 1973, or more than five years prior to the approval of a development or renewal plan for any development or renewal area, whichever is later, is deemed to have an original taxable value of zero and the county auditor shall so certify.
  3. In each subsequent year, the auditor shall compute and certify the net amount by which the original taxable value of all lots and parcels of real estate in the area, as then assessed and equalized, including real estate then held by the municipality or urban renewal agency valued at zero, has increased or decreased in comparison with the original taxable value of all such real estate. The net amount of the increase or decrease is referred to in this section as the incremental value or the lost value for that year, as the case may be.
  4. In any year when there is an incremental value, the auditor shall exclude it from the taxable value upon which the auditor computes the mill rates of taxes levied in that year by the state, the county, the municipality, the school district, and every other political subdivision having power to tax the development or renewal area, until the cost of development or renewal of the area has been reimbursed in accordance with this section. However, the auditor shall extend the aggregate mill rate of those taxes against the incremental value as well as the original taxable value, and the amount of taxes received from that extension against the incremental value is referred to in this section as the tax increment for that year.
  5. In any year when there is a lost value, the auditor shall compute and certify the amounts of taxes which would have resulted from the extension against the lost value of the mill rate of taxes levied that year by the state and each political subdivision having power to tax the development or renewal area. The amounts so computed are referred to in this section as the tax losses for that year.
  6. The county auditor shall segregate all tax increments from the development or renewal area in a special fund, crediting to the fund, in each year when there is an incremental value, that proportion of each collection of taxes on real estate within the area which the incremental value bears to the total taxable value in that year.
  7. Upon receipt of any tax increments in the fund, the county treasurer, at the times when the county treasurer distributes collected taxes to the state and to each political subdivision for which a tax loss has previously been recorded, shall also remit to each of them from the tax increment fund an amount proportionate to the amount of that tax loss, until all those tax losses have been reimbursed. Thereafter, at the time of each distribution, the county treasurer shall remit the entire balance then on hand in the fund to the municipality, until the cost of development or renewal of the area has been reimbursed to the municipality as provided in this section.
  8. The cost of development or renewal subject to reimbursement from the tax increment fund for each development or renewal area must include all expenditures incident to carrying out the development or renewal plan for the area and any modifications thereof, not otherwise reimbursed in one of the ways referred to below, including all expenses of the clearance, development, redevelopment, rehabilitation, and conservation of the area, and all interest and redemption premiums paid on bonds, notes, or other obligations issued by the municipality or urban renewal agency to provide funds for payment of those expenses, subject to section 40-58-20.1 for the purpose of determining eligible cost of development of industrial or commercial property. From the total cost to be reimbursed there must be deducted, except as provided below, all amounts received from the federal government or others, and all special assessments, revenues, and other receipts except property taxes, which are actually collected and applied to the payment of the cost or the bonds, notes, or other obligations, at the times when those payments are due. However, if the proceeds of tax increments or of bonds, notes, or other obligations are loaned to finance part or all of the cost of a project comprising the restoration, reconstruction, and improvement of a privately owned state historical site situated within the development or renewal area or any buildings or structures thereon, as contemplated in section 55-10-08, or of a property listed in the national register of historic places, as contemplated in section 55-10-11, in consideration of the grant to the city of a historic easement with respect thereto, repayments of the loan may not be deducted from the cost of development or renewal subject to reimbursement.
  9. The tax increments from any development or renewal area may be appropriated by the governing body of the municipality for the payment of any general obligation bonds, special improvement warrants, or refunding improvement bonds issued by the municipality to provide funds for payment of the cost of development or renewal, together with interest and redemption premiums thereon, other than that portion, if any, of such principal, interest, and redemption premiums which can be paid when due from collections of special assessments, revenues, or other funds, excluding property taxes, which are pledged for the payment thereof. When special improvement warrants or refunding improvement bonds are issued to pay the cost of public improvements of special benefit to properties within the development or renewal area, the governing body may cause those special benefits to be computed, together with the cost properly assessable against those properties, and may appropriate the tax increments from the area to the payment of that cost, in lieu of levying special assessments upon the property. In this event, the amount so appropriated, divided into the same number of installments as the special assessments and with interest at the same rate on the declining balance thereof, is deemed a part of the special assessments appropriated for payment of the cost, within the meaning of section 40-26-08.
  10. When the cost of development or renewal of any development or renewal area has been fully paid and all bonds, notes, or other obligations issued by the municipality to pay that cost have been retired, or funds sufficient for the retirement thereof have been received by the municipality, the governing body shall cause this to be reported to the county auditor, who shall thereafter compute the mill rates of all taxes upon the total taxable value of the development or renewal area. Any balance then on hand in the tax increment fund must be distributed by the county treasurer to the state and all political subdivisions having power to tax property in the area, in amounts proportionate to the amounts of the tax losses previously reimbursed to them.
  11. As an alternative to the sale of bonds to be amortized with tax increments as provided in this section, the governing body of a municipality may, in its discretion, grant a total or partial tax exemption for the project in order to provide assistance to a project developer in a development or renewal area, pursuant to agreement with the municipality. However, if a developer of a development or renewal project receives a tax exemption for that project pursuant to this subsection, that project developer may not receive a tax exemption for that project under section 40-57.1-03, 40-57.1-04, 40-57.1-04.1, or 40-57.1-04.3. The amount of annual tax exemption under this subsection is limited to the tax increment as defined in this section as it applies to the development or renewal project and may extend for a period not to exceed fifteen years. In determining the total amount of the tax exemption to be authorized, the municipality shall give due consideration to the same elements as are involved in the sale of bonds to be amortized by tax increments. The amount to be reimbursed, by tax exemption, to the project developer must be all or a portion of eligible public costs which have been paid by the project developer, plus interest on those costs at a rate not to exceed ten percent per annum. The amount of tax exemption must be an amount sufficient to reimburse the project operator for those eligible costs, amortized pursuant to the agreement between the project developer and the municipality.
  12. The governing body of a municipality with an active tax increment financing district may at any time identify funds on hand that are in excess of the costs it determines necessary to complete the activities included in the last approved urban renewal plan for that district. The governing body shall cause the identified surplus to be transferred to the county treasurer to be distributed to the state and all political subdivisions having power to tax property in the area, in amounts proportionate to the most recent five-year average of the property tax levy within the district.

Source: S.L. 1973, ch. 342, § 1; 1981, ch. 430, § 1; 1983, ch. 589, § 1; 1985, ch. 469, § 1; 1989, ch. 499, § 18; 2011, ch. 300, § 2, 3.

Effective Date.

The 2011 amendment of this section by sections 2 and 3 of chapter 300, S.L. 2011 became effective August 1, 2011.

Note.

Section 40-58-20 was amended 2 times by the 2011 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in sections 2 and 3 of chapter 300, Session Laws 2011, Senate Bill 2050.

Section 2 of S.L. 1981, ch. 430, provided: “The 1981 amendment to subsection 2 of section 40-58-20 is expressly declared to be retroactive to July 1, 1973, and applies to all urban renewal plans for any urban renewal areas established after June 30, 1973”. The 1981 amendment added the last sentence to subsection 2.

Notes to Decisions

Compliance.

Remand was necessary to resolve whether there were any authorized renewal projects in a renewal area when the district court approved a city’s renewal plan, and, if appropriate, for allocation of diverted tax increment funds to the proper recipients in accordance with N.D.C.C. § 40-58-20(10). Haugland v. City of Bismarck, 2012 ND 123, 818 N.W.2d 660, 2012 N.D. LEXIS 125 (N.D. 2012).

Notice.

Although taxpayer may not have had actual notice of the exact rate tax increment financing exemption was being depleted, where the parties’ agreement explicitly stated the entire exemption would be amortized over a period no longer than fifteen years, taxpayer could not successfully claim lack of notice about the rate of depletion of the tax exemption. Trollwood Village Ltd. Ptnr. v. Cass County Bd. of County Comm'rs, 557 N.W.2d 732, 1996 N.D. LEXIS 272 (N.D. 1996).

40-58-20.1. Use of tax increment financing for the development of certain industrial or commercial property — Public hearing — Eligible costs of development.

  1. The governing body of a municipality may use the tax increment financing method authorized by section 40-58-20 to assist a project developer in the development of industrial or commercial property, as limited by this section, pursuant to an agreement between the municipality and the project developer.
  2. Prior to entering into an agreement with a project developer under subsection 1, the governing body of the municipality shall consider the agreement at a public hearing, which may be held in conjunction with the public hearing required by subsection 3 of section 40-58-06, after providing written notice of the hearing at least fifteen days prior to the hearing to potential competitors of the prospective industrial or commercial enterprise, and may enter into the agreement only if it determines that the agreement will not result in unfair competition and that the agreement is in the best interests of the municipality as a whole.
  3. For the purpose of determining costs of development of industrial or commercial property to be reimbursed by tax increments under section 40-58-20, only the following public costs necessarily incurred, by either the municipality or the project developer, for the purpose of preparing the property for private development by the project developer may be included in the agreement as reimbursable public costs of development:
    1. The cost of acquiring, or the market value, of all or a part of the industrial or commercial property;
    2. Costs of demolition, removal, or alteration of buildings and improvements on the industrial or commercial property, including the cost of clearing and grading land;
    3. Costs of installation, construction, or reconstruction of streets, utilities, parks, and other public works or improvements necessary for carrying out the development or renewal plan; and
    4. All interest and redemption premiums paid on bonds, notes, or other obligations issued by the municipality to provide funds for the payment of eligible public costs of development.

Source: S.L. 1989, ch. 499, § 1.

40-58-20.2. Tax increment financing proposal — Public hearing — Invitation to representatives of affected taxing districts.

  1. Before approval of a development or renewal plan for any development or renewal area under section 40-58-20, the governing body of the municipality shall conduct a public hearing on the proposal. The governing body shall provide invitations to participate in the public hearing to the governing body of each county, school district, and park district within the development or renewal area. At a minimum, the governing body of the municipality shall provide the following information at the public hearing:
    1. The anticipated costs of development of property to be reimbursed by tax incentives.
    2. The anticipated annual revenue from tax increments which will be received to complete the development or renewal plan.
    3. The anticipated date when the plan will be completed, the costs will be fully paid, and the tax increments will be released.
    4. The estimate of the dollars annually attributable to the levies from each taxing entity which will be credited to the tax increment fund.
  2. Before granting a property tax incentive on any parcel of property that is anticipated to receive a property tax incentive for more than five years, the governing body of the municipality must comply with the requirements in section 40-05-24.

Source: S.L. 2011, ch. 300, § 4; 2017, ch. 277, § 3, effective August 1, 2017.

Effective Date.

This section became effective August 1, 2011.

Note.

Section 8 of chapter 277, S.L. 2017 provides, “ EFFECTIVE DATE. Sections 1 through 4 of this Act are effective for property tax incentives approved after July 31, 2017.”

40-58-20.3. Tax increment financing reports.

For each development or renewal plan for any development or renewal area under section 40-58-20 in existence at the end of a calendar year, the governing body of the municipality shall file an annual report with the department of commerce, by the following July thirty-first, which is in a format prescribed by the department. The report must include:

  1. The total of outstanding indebtedness.
  2. The balance of funds on hand.
  3. The name of the tax increment financing district.

Source: S.L. 2011, ch. 300, § 5.

Effective Date.

This section became effective August 1, 2011.

CHAPTER 40-59 Municipal Memorial Levy

40-59-01. Armory or memorial funding.

The governing body of any municipality maintaining an armory annually may provide funding from revenues derived from its general fund levy authority for armory or memorial hall maintenance, repair, alteration, and reconstruction.

Source: S.L. 1957, ch. 286, § 1; R.C. 1943, 1957 Supp., § 40-5901; S.L. 1983, ch. 593, § 31; 1983, ch. 606, § 51; 2015, ch. 439, § 60, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 60 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Recreation centers and facilities as memorials, see § 40-55-11.

40-59-02. Resolution and notice of election.

The resolution and order of the governing body of the municipality calling an election pursuant to the provisions of this chapter shall contain a general description of the precise purpose for which a tax is to be levied and collected, the maximum mills per annum to be levied not to exceed two mills per annum, and the time when such election shall be held. Notice of the adoption of such resolution and of the election to be held in pursuance thereof shall be published by the auditor thirty days prior to the day of election.

Source: S.L. 1957, ch. 286, § 2; R.C. 1943, 1957 Supp., § 40-5902; S.L. 1967, ch. 323, § 227.

40-59-03. Form of ballot.

The form of the ballot at an election authorized by this chapter shall be prepared by the auditor and shall be substantially as follows:

Shall a levy of not to exceed two mills be made for the purpose of ? Yes No

Click to view

There shall be inserted in the blank space in such question appropriate words describing the purpose and nature of the improvement to be undertaken.

Source: S.L. 1957, ch. 286, § 3; R.C. 1943, 1957 Supp., § 40-5903; S.L. 1967, ch. 323, § 228.

40-59-04. Conduct of election.

A special election upon the question of levying taxes for such purpose shall be held at a time to be set by the governing body of the municipality. The votes cast upon the question of the proposed tax levy shall be returned and canvassed as other votes cast at elections are returned and canvassed, and the result of such election shall be certified and spread upon the minutes of the proceedings of the governing body of the municipality at the next regular or special meeting thereafter.

Source: S.L. 1957, ch. 286, § 4; R.C. 1943, 1957 Supp., § 40-5904.

CHAPTER 40-60 Promotion and Acquisition of Municipal Parking Facilities

40-60-01. Reservation of areas for parking.

To alleviate traffic congestion in municipalities, prevent the development of blight, and implement orderly plans for urban development and urban renewal, it is necessary that adequate and suitable space be reserved, particularly in central business areas, for parking facilities; which phrase is defined to include, but without limitation, all offstreet lots, sites, parking meters and other control devices, garages, ramps, and other structures and accessories, both aboveground and belowground, which are used or useful for the parking, delivery, fueling and servicing of automobiles and other motor vehicles, the collection of charges therefor, and the convenience of the patrons of the facilities. The withdrawal of a disproportionate amount of land for this purpose from use for commercial development and from the tax base of municipalities is undesirable and can be avoided, when the growth of business areas makes it economically feasible, by the construction of multilevel parking ramps and garages, and by making the space above, below, or adjacent thereto available for commercial development and use. It is the policy and purpose of the state to authorize and encourage municipal action, and cooperation of municipalities with public and private persons, firms, corporations, and limited liability companies in the acquisition, construction, improvement, development, extension, financing, operation, maintenance, and leasing of parking facilities, and of commercially usable space therein and adjacent thereto for the purposes and by the methods described in section 40-60-02.

Source: S.L. 1967, ch. 341, § 1; 1993, ch. 54, § 106.

Notes to Decisions

Lending Credit to Individuals.

Financing by special assessment the construction of a multilevel parking ramp with rentable commercial space is not unlawful and does not constitute lending the credit and borrowing power of the city to individuals, associations or corporations. Patterson v. Bismarck, 212 N.W.2d 374, 1973 N.D. LEXIS 131 (N.D. 1973).

Collateral References.

Parking facility proprietor’s liability for criminal attack on patron, 49 A.L.R.4th 1257.

40-60-02. Powers of municipalities pertaining to parking areas.

Any municipality is authorized:

  1. To acquire, construct, improve, develop, and extend parking facilities.
  2. To provide funds for this purpose by the budgeting of current funds from revenues derived from its general fund levy authority, the levy of special assessments, or the issuance of bonds or other obligations, or by any combination of these means, pursuant to and in accordance with the provisions of chapters 21-03, 40-22 to 40-27, 40-35, 40-40, and 40-57, and of all other applicable laws now in force or hereafter enacted.
  3. To devote to this purpose any land, buildings, structures, and equipment which may be owned by the municipality, and are determined by its governing body to be useful therefor and not required for another municipal purpose, and whose use for this purpose is not restricted by the terms of any conveyance or judgment by which such properties were acquired.
  4. To operate and maintain parking facilities and establish and collect rates, charges, and rentals for the use thereof by all public and private persons, firms, corporations, and limited liability companies.
  5. To lease parking facilities, and any part thereof, to any public or private person, firm, corporation, or limited liability company upon such terms as the governing body may determine; provided, that:
    1. No lease may be executed for a longer term, or shall be subject to extension at the option of the lessee for an additional term or terms, exceeding the maximum period prescribed by section 47-16-02.
    2. Every lease shall provide that title to all real property, buildings, and improvements on real property or in buildings subject to the lease, whether or not previously owned or acquired, constructed or financed by the municipality, and title to all other real and personal property subject to the lease which was previously owned or is acquired, constructed or financed by the municipality, shall be and remain in the municipality.
    3. If the entire site of any parking facilities and all improvements constructed thereon are leased, the lease shall specify the amount of space to be operated and maintained exclusively for public parking of motor vehicles, and the area of such space shall be not less than two times the area of the space, if any, to be made available within the facilities for commercial use.
    4. Any lease may permit the sublease of part or all of the facilities, but the minimum parking space specified in accordance with subdivision c shall be used or subleased solely for public parking, and all other space in the facilities shall be used or subleased solely for commercial or industrial use furthering the policies and purposes declared in chapter 40-57, and may be so used notwithstanding any provisions of that chapter precluding the use of previously owned municipal property or of municipally operated property for the projects therein authorized.
    5. If under the terms of the lease the lessee is to construct and finance part or all of the parking facilities to be provided at the leased site, the lease may permit the lessee’s interest therein to be mortgaged to secure the repayment of money borrowed by the lessee for this purpose, upon reasonable terms approved by the governing body of the lessor, and may allow the mortgagee a reasonable time to cure any default in the payment of rentals and the performance of covenants under the lease, prior to the termination thereof by the lessor.
    6. Every lease or part or all of the facilities at a particular site shall provide for the payment by the lessee of all costs of the operation and maintenance of the leased property, including all taxes and special assessments validly levied on the premises or leasehold, adequate insurance against loss of or damage to the leased property and loss or damage to other persons or property from any and all operations conducted thereon, and for payment by the lessee of net annual rentals at least sufficient to pay all principal and interest becoming due during the lease term on any amount of bonds issued by the municipality to pay capital costs of the leased property, and at least sufficient to reimburse the municipality for any other expenditure made by it to pay such capital costs, in annual amounts such that, if continued uniformly over the useful life of the facilities, the total amount of such investment would be repaid in full with interest at five percent per annum on the balance thereof from time to time remaining unpaid.
    7. The leasehold created by any such lease is classified as personal property, and any such portion of such premises not used solely for public parking of motor vehicles shall be subject to taxation.

Source: S.L. 1967, ch. 341, § 2; 1981, ch. 91, § 37; 1993, ch. 54, § 106; 2015, ch. 439, § 61, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 61 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Cancellation of assessment installments not yet due and levy of new assessments for parking improvements, see § 40-23-23.

Notes to Decisions

Taxing and Making Special Assessments.

Subdivision 5f of this section provides the formula under which leases for a parking facility may be offered by a municipality, but does not pertain to the power of financing the facility; therefore, a municipality that has leased out the facilities and has issued bonds is not prohibited from levying taxes or assessing special assessments as a primary source of revenue for the payment of any warrants or bonds which a municipality may have issued in connection with the construction of such a facility. Patterson v. Bismarck, 188 N.W.2d 734, 1971 N.D. LEXIS 194 (N.D. 1971).

CHAPTER 40-61 Municipal Parking Authority Act

40-61-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Authority” means any corporation created under the authority of this chapter.
  2. “Board” means the members of the authority.
  3. “Bonds” means the bonds authorized in this chapter.
  4. “City” means any city with a municipal parking authority.
  5. “Project” means any area or place operated or to be operated by an authority for the parking or storing of motor and other vehicles and includes all real and personal property, driveways, roads, approaches, structures, terminals of all kinds, garages, meters, mechanical equipment, and all appurtenances and facilities either on, above, or under the ground which are used and usable in connection with such parking or storing of such vehicles in the area of the city.
  6. “Projects” means more than one project.
  7. “Property owner” means either a real estate owner, the beneficial owner of a leasehold on a building constructed on railroad property, or the owner of a retail or wholesale personal property inventory subject to an annual tax in excess of one thousand dollars.
  8. “Real property” means lands, structures, franchises, and interest in lands, and any and all things usually included within the said term, and includes not only fees simple absolute but also any and all lesser interests, such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest, or right, legal or equitable, including terms of years.

Source: S.L. 1967, ch. 342, § 2; 1969, ch. 387, § 2.

Note.

Section 1 of chapter 342, S.L. 1967 provided:

“This act shall be known as the ‘Municipal Parking Authority Act’”.

40-61-02. Municipal parking authorities.

Any city may create a board to be known as a municipal parking authority. Such board shall be a body corporate, constituting a public benefit corporation, and its existence shall commence upon the appointment of the members as herein provided. It shall consist of a chairman and four other members, who shall be appointed by the governing body of the city. Three members of the board shall be property owners within the benefited areas and two members of the board shall be guarantors of the bonds of the authority if any have been issued and guaranteed by property owners. If the authority has not issued bonds or if property owners have not guaranteed said bonds as hereinafter provided, then two members may be appointed at large. Of the members first appointed, one shall be appointed for a period of one year, one for a period of two years, one for a period of three years, one for a period of four years, and one for a period of five years. At the expiration of such terms, the terms of office of their successors shall be five years. Each member shall continue to serve until the appointment and qualification of the member’s successor. Vacancies in such board occurring otherwise than by the expiration of term shall be filled for the unexpired term. The members of the board shall choose from their number a vice chairman. The governing body of the city may remove any member of the board for inefficiency, neglect of duty, or misconduct in office, giving that member a copy of the charges against that member and an opportunity of being heard in person, or by counsel, in that member’s defense upon not less than ten days’ notice. The members of the board shall be entitled to no compensation for their services but shall be entitled to reimbursement for their actual and necessary expenses incurred in the performance of their official duties. The powers of the authority shall be vested in and exercised by a majority of the members of the board then in office. Such board may delegate to one or more of its members or to its officers, agents, and employees such powers and duties as it may deem proper. Such board and the corporate existence of the authority shall continue until all its liabilities have been met and its bonds have been paid in full or such liabilities or bonds have otherwise been discharged and until the existence of the authority is terminated by official action of the governing body of the city. Upon its ceasing to exist, all its rights and properties shall pass to the city.

Source: S.L. 1967, ch. 342, § 3; 1969, ch. 387, § 3.

Cross-References.

Parking authority as municipality under Municipal Industrial Development Act, see § 40-57-02.

40-61-03. Purpose and powers of an authority.

The purpose of an authority shall be to construct, operate, and maintain one or more projects in the city and to promote and acquire municipal parking facilities in accordance with the provisions of this chapter and to promote municipal development by making space above, below, or adjacent to parking facilities available for commercial development and use in order to further purposes outlined in this chapter and in chapter 40-60. To carry out said purpose, an authority shall have power:

  1. To sue and be sued.
  2. To acquire, hold, and dispose of personal property for its corporate purposes, including the power to purchase prospective or tentative awards in connection with the condemnation of real property.
  3. To acquire in the name of the city by purchase or condemnation, and use necessary real property. All real property acquired by the authority by condemnation must be acquired in the manner provided in the condemnation law or in the manner provided by chapter 32-15 for the condemnation of land by a city.
  4. To make bylaws for the management and regulation of its affairs and, subject to agreements with bondholders, for the regulation of the project.
  5. To appoint officers, agents, and employees, to prescribe their qualifications, and to fix their compensation. However, the officers, agents, and employees shall not be subject to the civil service law.
  6. To appoint an attorney, who may be the city attorney, and to fix that person’s compensation.
  7. To make contracts and leases and to execute all instruments necessary or convenient.
  8. To construct such buildings, structures, and facilities as may be necessary.
  9. To reconstruct, improve, maintain, and operate the projects.
  10. To accept grants, loans, or contributions from the United States, the state of North Dakota, or any agency or instrumentality of either of them, or the city, or an individual, by bequest or otherwise, and to expend the proceeds for any purposes of the authority.
  11. To fix and collect rentals, fees, and other charges for the use of the projects or any of them, subject to and in accordance with such agreements with bondholders as may be made as hereinafter provided.
  12. To construct, operate, or maintain in the projects all facilities necessary or convenient in connection therewith. To contract for the construction, operation, or maintenance of any parts thereof or for services to be performed. To rent parts thereof, and grant concessions, all on such terms and conditions as it may determine. However, the authority, the city, or any agency of an authority or city, or any other person, firm, corporation, or limited liability company may not, within or on any property comprising a part of any project authorized by this chapter, sell, dispense, or otherwise handle any product used in or for the servicing of any motor vehicle using any project or facility authorized by this chapter and the location of sites of the projects shall be subject to the prior approval of the governing body of the city.
  13. To encourage commercial development and use of space above, below, or adjacent to parking facilities by exercising the powers granted municipalities under subsection 5 of section 40-60-02. However, subdivision c of subsection 5 of section 40-60-02 is not applicable to leases entered into by the authority.

Source: S.L. 1967, ch. 342, § 4; 1969, ch. 387, § 4; 1973, ch. 80, § 21; 1993, ch. 54, § 106; 2007, ch. 293, § 29.

Effective Date.

The 2007 amendment of this section by section 29 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

40-61-03.1. Financing projects and facilities.

An authority may provide funds for its purposes by using the following methods or any combination thereof:

  1. Issuing bonds of an authority as authorized by section 40-61-08.
  2. Issuing notes of an authority as authorized by section 40-61-09.
  3. In cooperation with cities whereby cities may agree to assist in financing projects and facilities through the issuance of municipal bonds or other obligations, budgeting of current funds from revenues derived from its general fund levy authority, the levy of special assessments, or by any combination of these means pursuant to or in accordance with the provisions of chapters 21-03, 40-22 to 40-27, 40-35, 40-40, and 40-57 and all other applicable laws now in force or hereafter enacted.

Source: S.L. 1969, ch. 387, § 1; 1981, ch. 91, § 38; 2015, ch. 439, § 62, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 62 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

Cross-References.

Cancellation of assessment installments not yet due and levy of new assessments for parking improvements, see § 40-23-23.

40-61-04. Officers and employees.

Municipal parking authorities shall not be subject to civil service or merit system laws, veterans preference laws, or other laws, ordinances, and regulations pertaining to the status of municipal employees. Employees of a municipal parking authority shall have the same position as employees of a private corporation and the board of directors of a municipal parking authority shall manage their employee relationships in the same manner as private corporations.

Source: S.L. 1967, ch. 342, § 5.

40-61-05. Conveyance of property by a city to an authority — Acquisition of property by a city or by an authority.

  1. A city may, by resolution or resolutions of the governing body or by instruments authorized by such resolutions, convey, with or without consideration, to an authority real and personal property owned by the city for use by an authority as a project or projects or a part thereof. In case of real property so conveyed, the title thereto shall remain in the city but the authority shall have the use and occupancy thereof for so long as its corporate existence shall continue. In the case of personal property so conveyed, the title shall pass to the authority.
  2. A city may acquire in the name of the city by purchase or condemnation real property in the city for any of the projects.
  3. Contracts may be entered into between a city and an authority providing for the property to be conveyed by a city to an authority, the additional property to be acquired by a city and so conveyed, and the amounts, terms, and conditions of payment to be made by an authority. Any such contracts between a city and an authority may be pledged by the authority to secure its bonds and may not be modified thereafter except as provided by the terms of the pledge. The governing body of a city may authorize such contracts between a city and an authority and no other authorization on the part of a city for such contracts shall be necessary.
  4. An authority may itself acquire real property for a project in the name of the city at the cost and expense of the authority by purchase or condemnation pursuant to chapter 32-15 and to the laws relating to the condemnation of land by cities. An authority shall have the use and occupancy of such real property so long as its corporate existence shall continue.
  5. In case an authority shall have the use and occupancy of any real property which it shall determine is no longer required for a project, then, if such real property was acquired at the cost and expense of the city, the authority shall have power to surrender its use and occupancy thereof to the city, or, if such real property was acquired at the cost and expense of an authority, then the authority shall have power to sell, lease, or otherwise dispose of said real property at public or private sale, and shall retain and have the power to use the proceeds of sales, rentals, or other moneys derived from the disposition thereof for its purposes.

Source: S.L. 1967, ch. 342, § 6; 2007, ch. 293, § 30.

Effective Date.

The 2007 amendment of this section by section 30 of chapter 293, S.L. 2007 became effective April 5, 2007, pursuant to an emergency clause in section 47 of chapter 293, S.L. 2007.

40-61-06. Construction contracts.

An authority shall let contracts for construction in the same manner, so far as practicable, as is provided by law for contracts of cities except that if the estimated expense of a contract does not exceed five hundred dollars, such contract may be entered into without public letting. Nothing in this section shall be construed to limit the power of an authority to do any construction directly by the officers, agents, and employees of the authority.

Source: S.L. 1967, ch. 342, § 7.

40-61-07. Moneys of the authority.

All moneys of an authority shall be paid to the city auditor as agent of the authority, who shall not commingle such moneys with any other moneys. Such moneys shall be deposited in a separate bank account or accounts. The moneys in such accounts shall be paid out by the auditor on requisition of the chairman of the authority or of such other person or persons as the authority may authorize to make such requisitions after audit by the auditor. Approval of the payment of an account or claim shall be recorded in the record of the proceedings of the authority and this shall be sufficient to indicate approval without requiring the approving members to sign or initial the voucher or order for payment. All deposits of such moneys shall, if required by the auditor or the authority, be secured by obligations of the United States or of the state of North Dakota of a market value equal at all times to the amount of the deposit, and all banks and trust companies are authorized to give such security for such deposits. The auditor and the auditor’s legally authorized representatives are authorized and empowered from time to time to examine the accounts and books of the authority, including its receipts, disbursements, contracts, leases, sinking funds, investments, and any other records and papers relating to its financial standing. An authority shall have power, notwithstanding the provisions of this section, to contract with the holders of any of its bonds as to the custody, collection, securing, investment, and payment of any moneys of the authority, or any moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds, and to carry out any such contract notwithstanding that such contract may be inconsistent with the previous provisions of this section. Moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of such moneys may be acquired in the same manner as moneys of the authority, and all banks and trust companies are authorized to give such security for such deposits.

Source: S.L. 1967, ch. 342, § 8; 1975, ch. 366, § 9; 2001, ch. 122, § 9.

40-61-08. Bonds of an authority.

  1. An authority may from time to time issue its negotiable bonds for any purpose mentioned in section 40-61-03, including the acquisition, construction, reconstruction, and repair of personal and real property of all kinds deemed by the board to be necessary or desirable to carry out such purpose, as well as to pay such expenses as may be deemed by the board necessary or desirable to the financing and placing the project or projects in operation. An authority may from time to time and whenever it deems refunding expedient, refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and may issue bonds partly to refund bonds then outstanding and partly for any other purpose hereinabove described. The refunding bonds may be exchanged for the bonds to be refunded, with such cash adjustments as may be agreed, or may be sold and the proceeds applied to the purchase or payment of the bonds to be refunded. In computing the total amount of bonds of an authority which may at any time be outstanding, the amount of the outstanding bonds to be refunded from the proceeds of the sale of new bonds or by exchange for new bonds shall be excluded. Except as may otherwise be expressly provided by an authority, the bonds of every issue shall be payable out of any moneys or revenues of an authority, subject only to any agreements with the holders of particular bonds pledging any particular moneys or revenues. Notwithstanding the fact that the bonds may be payable from a special fund, if they are otherwise of such form and character as to be negotiable instruments under chapter 41-08, the bonds shall be and are hereby made negotiable instruments within the meaning of and for all the purposes of chapter 41-08, subject only to the provisions of the bonds for registration.
  2. The bonds shall be authorized by resolution of the board and shall bear such date or dates, mature at such time or times, not exceeding thirty years from their respective dates, bear interest at such rate or rates, resulting in an average annual net interest cost not exceeding twelve percent per annum payable annually or semiannually on those issues which are sold at private sale, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. The bonds may be sold at public or private sale for such price or prices as the authority shall determine. There is no interest rate ceiling on those issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities.
  3. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which shall be part of the contract with the holders of the bonds thereby authorized, as to:
    1. Pledging all or any part of the revenues of a project or projects to secure the payment of the bonds, subject to such agreements with bondholders as may then exist.
    2. The rentals, fees, and other charges to be charged, and the amounts to be raised in each year thereby, and the use and disposition of the revenues.
    3. The setting aside of reserves or sinking funds, and the regulation and disposition thereof.
    4. Limitations on the right of an authority to restrict and regulate the use of a project.
    5. Limitations on the purpose to which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the bonds or of any issue of the bonds.
    6. Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds.
    7. The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given.
    8. Limitations on the amount of moneys derived from a project to be expended for operation, administration, or other expenses of an authority.
    9. Vesting in a trustee or trustees of such property, rights, powers, and duties in trust as an authority may determine which may include any or all of the rights, powers, and duties of the trustee appointed by the bondholders pursuant to section 40-61-15, and limiting or abrogating the right of the bondholders to appoint a trustee under said section or limiting the rights, duties, and powers of such trustee.
    10. Any other matters, of like or different character, which in any way affect the security or protection of the bonds.
  4. It is the intention hereof that any pledge of revenues or other moneys made by an authority shall be valid and binding from the time when the pledge is made, that the revenues or other moneys so pledged and thereafter received by an authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against an authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
  5. Neither the members of an authority nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
  6. An authority shall have power out of any funds available therefor to purchase bonds. An authority may hold, cancel, or resell such bonds, subject to and in accordance with agreements with bondholders.
  7. In the discretion of an authority, the bonds may be secured by a trust indenture by and between an authority and a corporate trustee, which may be any trust company or bank within or without the state of North Dakota. Such trust indenture may contain such provisions for protecting, and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of an authority in relation to the construction, maintenance, operation, repair, and insurance of the project or projects and the custody, safeguarding, and application of all moneys, and may provide that the project or projects shall be constructed and paid for under the supervision and approval of consulting engineers. Notwithstanding the provisions of section 40-61-07, an authority may provide by such trust indenture for the payment of the proceeds of the bonds and the revenues of the project or projects to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation, and repairs of the project or projects. If the bonds shall be secured by a trust indenture, the bondholders shall have no authority to appoint a separate trustee to represent them, and the trustee under such trust indenture shall have and possess all of the powers which are conferred by section 40-61-15 upon a trustee appointed by bondholders.
  8. An authority shall also have power and is hereby authorized from time to time to issue revenue bonds in accordance with the provisions of chapter 40-57, but only for the purpose of financing a parking project in support of those projects referred to in subsection 3 of section 40-57-02. In the issuance of such bonds, the authority shall have all of the powers granted to a municipality in chapter 40-57, and shall be controlled in the exercise of such powers only by the provisions of chapter 40-57, and not by any of the provisions of this chapter with reference to other bonds and notes of the authority.

Source: S.L. 1967, ch. 342, § 9; 1971, ch. 249, § 23; 1977, ch. 390, § 3; 1981, ch. 269, § 21.

40-61-09. Notes of an authority.

An authority shall have power from time to time to issue notes and from time to time to issue renewal notes, herein referred to as notes, maturing not later than five years from their respective original dates for any purpose or purposes for which bonds may be issued, whenever an authority shall determine the payment thereof can be made in full from any moneys or revenues which an authority expects to receive from any source. Such notes may, among other things, be issued to provide funds to pay preliminary costs of surveys, plans, or other matters relating to any proposed or existing project. An authority may pledge such moneys or revenues, subject to any other pledge thereof, for the payment of the notes and may in addition secure the notes in the same manner and with the same effect as herein provided for bonds and may also secure the notes by the guarantee of two or more property owners. The notes shall be issued in the same manner as bonds. An authority shall have power to make contracts for the future sale from time to time of the notes, by which the purchasers shall be committed to purchase the notes from time to time on terms and conditions stated in such contracts, and an authority shall have power to pay such consideration as it shall deem proper for such commitments. In case of default on its notes, or violation of any of the obligations of an authority to the noteholders, the noteholders shall have all the remedies provided herein for bondholders.

Source: S.L. 1967, ch. 342, § 10; 1969, ch. 387, § 5.

40-61-10. Debt guarantee.

Prior to the issuance of any bonds authorized by this chapter, except revenue bonds authorized in subsection 8 of section 40-61-08, the authority shall require that the payment of not less than ten percent of the principal and interest of the bonds issued for any project be guaranteed through the use of one or more of the following methods:

  1. A contract of personal guarantee entered into between the authority, the bondholders, and at least three benefited property owners.
  2. The guarantee of said payments by the municipality through the issuance of municipal bonds or other obligations, budgeting of current funds from revenues derived from its general fund levy authority, the levy of special assessments or by any combination of these pursuant to and in accordance with the provisions of chapters 21-03, 40-22 to 40-27, 40-35, 40-40, and 40-57 and of all other applicable laws now in force or hereinafter enacted.

Source: S.L. 1967, ch. 342, § 11; 1969, ch. 387, § 6; 1973, ch. 330, § 2; 1977, ch. 390, § 4; 2015, ch. 439, § 63, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 63 of chapter 439, S.L. 2015 is effective for taxable years beginning after December 31, 2014.

40-61-11. Agreement of a city.

  1. Cities may pledge to and agree with the holders of the bonds that the city will not limit or alter the rights hereby vested in the authority to acquire, construct, maintain, reconstruct, and operate the project or projects, to establish and collect rentals, fees, and other charges and to fulfill the terms of any agreements made with the holders of the bonds, or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest thereon, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the bondholders are fully met and discharged.
  2. Authorities are hereby authorized, in their discretion, for and on behalf of themselves and the city which authorized them, to covenant and agree with the holders of the bonds, with such exceptions and limitations as it may deem in the public interest, that no public parking areas except those acquired and operated by the authority will be constructed or operated in the city by the city, or by any public benefit or other corporation the members or some of which are elected or are appointed by city officials, until either the bonds, together with interest thereon, interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the bondholders are fully met and discharged, or principal or interest of any of the bonds shall be overdue and unpaid for a period of three years or more.

Source: S.L. 1967, ch. 342, § 12.

40-61-12. State and city not liable on bonds — Exceptions as to cities.

The bonds and other obligations of an authority shall not be a debt of the state of North Dakota and the state shall not be liable thereon. The bonds and other obligations of an authority shall not be a debt of a city and a city shall not be liable thereon unless a city agrees to assist in financing projects and facilities through the issuance of municipal bonds or other obligations which are considered to be a part of the debt of the city as provided in section 40-61-03.1.

Source: S.L. 1967, ch. 342, § 13; 1969, ch. 387, § 7.

40-61-13. Bonds legal investments for public officers.

Except as otherwise provided in the Constitution of North Dakota, the bonds are hereby made securities in which all public officers and bodies of this state and all municipalities and municipal subdivisions, all banks, bankers, trust companies, savings banks, savings associations, including savings and loan associations, investment companies, and other persons carrying on a banking business, and all other persons whatsoever except as hereinafter provided, who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds, including capital in their control or belonging to them. However, notwithstanding the provisions of any other general or special law to the contrary, the bonds are not eligible for the investment of funds, including capital, of trusts, estates, or guardianships under the control of individual administrators, guardians, executors, trustees, and other individual fiduciaries. The bonds are authorized securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and municipal subdivisions for any purpose for which the deposit of bonds or other obligations of this state is now or may hereafter be authorized.

Source: S.L. 1967, ch. 342, § 14; 1983, ch. 319, § 30.

40-61-14. Tax exemptions.

  1. It is hereby determined that the creation of an authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the city which has authorized it and its environs, and is a public purpose, and an authority shall be regarded as performing a governmental function in the exercise of the powers conferred upon it by this chapter and shall be required to pay no ad valorem taxes upon any of the property acquired by it or under its jurisdiction or control or supervision or upon its activities. If property acquired by an authority is leased to any person and is used exclusively for automobile parking for general public patronage, the leasehold interest of the lessee shall not be subject to ad valorem taxation if exempt from such taxation by the governing board of the city in which such authority is located.
  2. Any bonds or notes issued pursuant to this chapter, together with the income therefrom, as well as the property of an authority, shall be exempt from taxation, except for transfer and estate taxes.

Source: S.L. 1967, ch. 342, § 15; 1969, ch. 387, § 8; 1975, ch. 389, § 1.

40-61-15. Tax contract by the state.

The state of North Dakota covenants with the purchasers and with all subsequent holders and transferees of bonds or notes issued by an authority pursuant to this chapter, in consideration of the acceptance of and payment for the bonds or notes, that the bonds and notes of an authority issued pursuant to this chapter and the income therefrom, and all moneys, funds, and revenues pledged to pay or secure the payment of such bonds or notes shall at all times be free from taxation, except for estate taxes and taxes on transfers by or in contemplation of death.

Source: S.L. 1967, ch. 342, § 16.

40-61-16. Remedies of bondholders.

  1. In the event that an authority shall default in the payment of principal of or interest on any issue of the bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or in the event that an authority shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of any issue of the bonds, the holders of twenty-five percent in aggregate principal amount of the bonds of such issue then outstanding, by instrument or instruments filed in the office of the recorder of the county in which the authority is located, unless the board of county commissioners designates a different official, and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such bonds for the purposes herein provided.
  2. Such trustee may, and upon written request of the holders of twenty-five percent in principal amount of such bonds then outstanding shall, in the trustee’s own name:
    1. By action or special proceeding enforce all rights of the bondholders, including the right to require an authority to collect revenues adequate to carry out by any agreement as to, or pledge of, such revenues, and to require an authority to carry out any other agreements with the holders of such bonds and to perform its duties under this chapter.
    2. Bring suit upon such bonds.
    3. By action or suit in equity, require an authority to account as if it were the trustee of an express trust for the holders of such bonds.
    4. By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds.
    5. Declare all such bonds due and payable, and if all defaults shall be made good then with the consent of the holders of twenty-five percent of the principal amount of such bonds then outstanding, to annul such declaration and its consequences.
  3. The district court shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders. The venue of any such suit, action, or proceeding shall be laid in the county in which the authority is located.
  4. Before declaring the principal of all such bonds due and payable, a trustee shall first give thirty days’ notice in writing to an authority.
  5. Any such trustee, whether or not the issue of bonds represented by such trustee has been declared due and payable, shall be entitled as of right to the appointment of a receiver of any part or parts of the project the revenues of which are pledged for the security of the bonds of such issue, and such receiver may enter and take possession of such part or parts of the project and, subject to any pledge or agreement with bondholders, shall take possession of all moneys and other property derived from or applicable to the acquisition, construction, operation, maintenance, and reconstruction of such part or parts of the project and proceed with the acquisition of any necessary real property in connection with the project that an authority has covenanted to construct and with any construction which an authority is under obligation to do and to operate, maintain, and reconstruct such part or parts of the project and collect and receive all revenues thereafter arising therefrom subject to any pledge thereof or agreement with bondholders relating thereto and perform the public duties and carry out the agreements and obligations of an authority under the direction of the court. In any suit, action, or proceeding by the trustee, the fee, counsel fees, and expenses of the trustee and of the receiver, if any, shall constitute taxable disbursements and all costs and disbursements allowed by the court shall be a first charge on any revenues derived from such project.
  6. Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders on the enforcement and protection of their rights.

Source: S.L. 1967, ch. 342, § 17; 1999, ch. 278, § 68; 2001, ch. 120, § 1.

40-61-17. Actions against an authority.

In every action against an authority for damages, for injuries to real or personal property, or for the destruction thereof, or for personal injuries or death, the complaint shall contain an allegation that at least thirty days have elapsed since the demand, claim, or claims upon which such action is founded were presented to a member of the authority, or to its secretary, or to its chief executive officer and that the authority has neglected or refused to make an adjustment or payment thereof for thirty days after such presentment.

Source: S.L. 1967, ch. 342, § 18.

40-61-18. Termination of an authority. [Repealed]

Repealed by S.L. 1969, ch. 387, § 9.

40-61-18.1. Termination of an authority by governing body.

A majority vote of the governing body of any city shall terminate an existing authority, and all rights, titles, and interest, and all obligations and liabilities thereof shall be vested in or possessed by the city which created the authority.

Source: S.L. 1975, ch. 390, § 1.

40-61-19. Inconsistent provisions in other acts superseded.

Insofar as the provisions of this chapter are inconsistent with the provisions of any other act, general or special, or of any local law of a city, the provisions of this title shall be controlling.

Source: S.L. 1967, ch. 342, § 20.

CHAPTER 40-62 City Pedestrian Mall Improvements

40-62-01. Authority for pedestrian mall and skyway improvements — Definitions.

  1. The governing body of any city may by resolutions create a special improvement district, order and approve plans and specifications, determine the necessity, advertise and enter contracts, issue special improvement warrants and bonds, and levy special assessments for the improvement of one or more streets within its central business district to be regulated and maintained as a mall for primarily pedestrian use, or for the construction of skyways within its central business district, in the manner and upon the terms and conditions set forth in chapters 40-22 to 40-27, except as otherwise provided in this chapter.
  2. For the purposes of this chapter:
    1. “Pedestrian mall” means a street within a city designated by the governing body and improved to encourage a high concentration of pedestrian use.
    2. “Skyway” means an overhead walkway, whether open or enclosed, allowing pedestrian traffic between buildings separated by a street, and includes all corridors, passageways, methods of ingress and egress, and other appurtenances necessary for an integrated and connected system.

Source: S.L. 1967, ch. 343, § 1; 1987, ch. 505, § 1; 2005, ch. 353, § 1.

Effective Date.

The 2005 amendment of this section by section 1 of chapter 353, S.L. 2005 became effective August 1, 2005.

Notes to Decisions

Constitutionality.

The provisions of this section do not violate the provision of the state constitution which prohibits the taking or damaging of private property without just compensation. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Condemnation.

This section adopts N.D.C.C. § 40-22-05 which authorizes condemnation of private property for special improvement projects. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Eminent domain proceedings are necessary to compensate abutting property owners for taking of light, air, access and view when city appropriates property for pedestrian mall. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

Superseding City Ordinance.

Home rule city’s ordinance authorizing creation of pedestrian mall superseded contradictions in this act. City of Fargo v. Fahrlander, 199 N.W.2d 30, 1972 N.D. LEXIS 155 (N.D. 1972).

40-62-02. Determination of necessity.

The resolution determining the necessity of the improvement shall designate the portions of streets to be included within the mall or crossed by skyways and shall state the reason or reasons why such designation is deemed necessary. It is recognized by state policy that such necessity may exist in a city of substantial size for one or more of the following reasons:

  1. Increases in population and in automobile usage and parking may create conditions of traffic congestion in the central business district during part or all of normal business hours which may be alleviated by a pedestrian mall or skyways.
  2. Continued unlimited use of the designated street or streets may constitute a hazard to the safety of pedestrians and may impede necessary movement of police and fire equipment, ambulances, and other emergency vehicles.
  3. Certain streets may be improved to their maximum width for sidewalk and roadway purposes, and may be incapable of further widening without taking buildings and improvements or substantially impeding the movements of pedestrians using the facilities of the central business district.
  4. Orderly plans for urban renewal, rehabilitation, and redevelopment may require or may be facilitated by such an improvement.
  5. Pedestrian use may be the highest and best use of the designated streets, and the limitation of the use thereof by vehicles may be in the best interest of the city and of the optimum benefit to the properties in the improvement district, if:
    1. Reasonably convenient alternate routes exist for vehicles going through the central business district to other parts of the city and the state;
    2. The designated streets are not federal, state, or county highways, or, if they are, the making of the improvement is conditioned upon the relocation of such highways in the manner provided by law; and
    3. Properties abutting on the designated streets can reasonably and adequately receive and deliver merchandise and materials either from other streets or alleys, or by providing for limited use of the designated streets for this purpose.
  6. Construction of skyways may alleviate the conflict between pedestrian and motor vehicle traffic.

Source: S.L. 1967, ch. 343, § 2; 1987, ch. 505, § 2.

40-62-03. Plans and specifications.

The plans and specifications must provide for improvement of the designated streets or construction of skyways in a manner designed for the free movement, safety, convenience, and enjoyment of pedestrians, whether or not part of the mall is made available for emergency or other permitted vehicles. A mall improvement may provide for and include space for seating, cafe tables, shelters, trees, flower plantings, sculptures, newsstands, telephone booths, traffic signs, kiosks, fire hydrants, streetlighting, ornamental lights, trash receptacles, display cases, marquees, awnings, canopies, overhead and underground radiant heating devices, walls, barriers, and all other fixtures, equipment, facilities, and appurtenances as will in the governing body’s judgment enhance the free movement, safety, convenience, and enjoyment of pedestrians and benefit the adjoining properties and the central business district and the city. Sidewalks may be constructed of concrete, bricks, asphalt tiles, blocks, granite sets, or other materials or combinations of materials as the governing body may approve. The governing body may alter any roadway to be kept and maintained in the mall, may cause any street vaults to be reconstructed or removed, may construct crosswalks at any point within or at the ends of blocks, and may cause any roadway to curve and meander within the limits of the street, if determined desirable to enhance the usefulness or appearance of the mall, regardless of any nonuniformity of street width or any curve or absence of curve in the centerline of the street. A skyway may be heated or unheated and may include any fixtures, equipment, facilities, and appurtenances the governing body determines will enhance the free movement, safety, convenience, and enjoyment of pedestrians and benefit the adjoining properties and the central business district and the city.

Source: S.L. 1967, ch. 343, § 3; 1987, ch. 505, § 3; 2005, ch. 353, § 2.

Effective Date.

The 2005 amendment of this section by section 2 of chapter 353, S.L. 2005 became effective August 1, 2005.

40-62-04. Jurisdiction to improve and regulate.

Upon hearing of any protests made by the owners of property within the improvement district in the time and in the manner provided by law, if the governing body shall determine the protests to be insufficient, it may proceed with the improvement as in the case of other special improvements; provided, that before so proceeding a certified transcript of the resolution of necessity must be recorded in the office of the recorder, and any person aggrieved thereby may appeal to the district court of the county in accordance with the procedure provided in section 28-34-01, but only on the ground that the establishment of the mall or construction of the skyway in accordance with the resolution will unreasonably and arbitrarily obstruct the public use of and interest in the designated street or streets, or that such resolution has been adopted in a manner contrary to law. Notwithstanding the establishment of a mall or skyway, or the improvement of any street or any portion thereof as a part of such mall or skyway, or any limitation of the use thereof by vehicles, the city and the governing body shall retain at all times their police powers and other powers and rights pertaining thereto, and no such action shall constitute a vacation, in whole or in part, of any portion of a city street.

Source: S.L. 1967, ch. 343, § 4; 1987, ch. 505, § 4; 1989, ch. 83, § 18; 2001, ch. 120, § 1.

40-62-05. Use of mall or skyways.

The jurisdiction of the city to make a pedestrian mall improvement or to construct skyways, when established in the manner provided by law, shall include jurisdiction to establish by ordinance and from time to time amend reasonable regulations for the use of the mall or skyways, conforming to the following provisions:

  1. Vehicles may be permitted within the pedestrian mall in designated driving and parking lanes as determined by the governing body.
  2. The owners and occupants of all properties abutting upon the mall which have access to no other street or alley for delivery or receipt of merchandise and materials shall be permitted to use the mall during such days and hours, which need not be ordinary business days or hours, and in such manner and over such distance, as the governing body shall find to be reasonably adequate for this purpose and to be possible without interfering with use by pedestrians and by emergency and other vehicles for which use is permitted.
  3. The regulations may permit use for any purpose or activity which will enhance the freedom of movement, safety, convenience, or enjoyment of pedestrians, including but not limited to, seating, sidewalk cafes, displays of merchandise, exhibits, advertising, telephones, transit, transit stops and shelters, newsstands, plantings, ornaments, protection from the elements, emergency vehicles, and police and fire equipment.
  4. The governing body may adopt a use plan prepared by city officers or consultants, providing for the location and distribution within the mall of furniture, sculpture, pedestrian traffic control devices, trees, flowers, lighting or heating facilities, and any other equipment or properties placed or installed in the mall, whether owned by the city or others, and may license and regulate the operation and maintenance thereof.
  5. Any furniture, structure, facility, or use located or permitted pursuant to such a plan shall not, by reason of such location or use, be deemed a nuisance or unlawful obstruction or condition, and neither the city nor any user acting under permit shall be liable for any injury to person or property therefor unless directly caused by its own negligence or that of its employees in the construction, maintenance, or operation of such furniture, structure, facility, or use.
  6. The regulations for skyways may establish reasonable hours for use, permit closure during hours of nonuse, prohibit use of the skyway for nonpublic purposes, and provide methods necessary to prevent vandalism and other unauthorized use of the skyway.

Source: S.L. 1967, ch. 343, § 5; 1987, ch. 505, § 5; 2005, ch. 353, § 3.

Effective Date.

The 2005 amendment of this section by section 3 of chapter 353, S.L. 2005 became effective August 1, 2005.

40-62-06. Maintenance and improvement.

A pedestrian mall or skyway established pursuant to this chapter may be maintained and the cost of such maintenance may be paid by all means permitted by law for streets. The governing body may also annually cause an estimate to be made of the probable cost of the maintenance during the current fiscal year, in excess of the cost of maintenance of streets of similar length, width, and location not used as a mall, and may assess the excess cost of maintenance on properties within the improvement district; provided, that the assessments may not exceed the special benefits determined to be received by the properties from the maintenance. The assessment list approved by the governing body must be filed in the office of the city auditor, who must mail to the street address of each lot and parcel proposed to be assessed, and to any other address as may be requested in writing by the owner or occupant of a lot or parcel, a notice stating the amount proposed to be assessed upon the lot or parcel, and that any objection thereto may be made in writing filed with the city auditor on or before a specified date, not less than twenty days after the mailing, on which date, at a time and place specified in the notice, the governing body will consider all objections. At this meeting, or any adjournment thereof, the governing body shall review all assessments and hear all persons desiring to be heard, and may amend the assessments in such manner as it determines to be just and reasonable, and may confirm the same and direct the assessment list to be filed with the county auditor, and the assessments made therein to be extended upon the tax lists of the city for the current year and collected with interest and penalties as general taxes are collected and paid over to the city auditor and placed by the auditor in a special fund to be used only for the purpose of current, reasonable and necessary expenses of the operation and maintenance of the mall or skyway.

Source: S.L. 1967, ch. 343, § 6; 1987, ch. 505, § 6.

40-62-07. Additional improvements and extensions.

An established pedestrian mall or skyway may be subsequently improved or extended by proceedings taken in the same manner as for its establishment, and the improvements or extensions may thereafter be regulated and maintained as provided in this chapter.

Source: S.L. 1967, ch. 343, § 7; 1987, ch. 505, § 7.

CHAPTER 40-63 Renaissance Zones

40-63-01. Definitions.

As used in this chapter:

  1. “Boundary” means the boundary established by vote of the city governing body and approved by the department of commerce division of community services.
  2. “Development plan” means a written plan that addresses the criteria in subsection 1 of section 40-63-03 and includes the following:
    1. A map of the proposed renaissance zone which indicates the geographic boundaries and blocks, a description of the properties and structures on each block, identification of those properties and structures to be targeted for potential zone projects, and a description of the present use and conditions of the targeted properties and structures.
    2. A description of the existing physical assets, in particular natural or historical assets, of the zone and a plan for the incorporation and enhancement of the assets within the proposed development.
    3. An outline of goals and objectives and proposed outcomes, including major milestones or benchmarks, by which to gauge success resulting from the designation of the zone.
    4. A description of the types of projects the city would encourage in the city’s targeted properties.
    5. A description of the promotion, development, and management strategies to maximize investment in the zone.
    6. A plan for the development, promotion, and use of a renaissance fund organization, if one is desired to be established. If a city is not ready to commit to establishing a renaissance fund organization, the city may indicate in the renaissance zone application the city’s desire to submit a plan for approval at a later date.
    7. Evidence of community support and commitment from residential and business interests. Evidence of community support must include letters of support from the governing bodies of each county and school district that contain property located within the boundaries of the proposed renaissance zone.
  3. “Investor” means the individual, partnership, limited partnership, limited liability company, trust, or corporation making an investment in a renaissance fund organization.
  4. “Lease” means the lease of space in a building in a designated renaissance zone by a new business moving into the zone or by an existing zone business expanding in the zone, and the continuation of a lease of an existing zone tenant in a building rehabilitated as an approved zone project. For existing zone tenants expanding in the zone, the term does not include existing leased space.
  5. “Local zone authority” means the city or the entity designated by the city to promote, develop, and manage the zone and may include any nonprofit incorporated entity such as an economic development corporation, community development corporation, main street organization, or chamber of commerce.
  6. “Original principal amount” means the funds invested in a renaissance fund organization after designation of the renaissance zone and before the sunset of that zone.
  7. “Rehabilitation”, as used in sections 40-63-04 and 40-63-05, means the repair or remodeling of a building or public utility infrastructure at a cost that is equal to or exceeds fifty percent of the current true and full value for commercial buildings or public utility infrastructure and twenty percent for single-family homes.
  8. “Taxpayer” means an individual, corporation, or trust subject to the taxes imposed by chapter 57-38 and includes a partnership, subchapter S corporation, limited partnership, limited liability company, or any other passthrough entity.
  9. “Zone” means a renaissance zone proposed by a city and designated by the department of commerce division of community services.
  10. “Zone project” means the purchase, lease, rehabilitation, or historical preservation or renovation of a building or space in a building approved for zone incentives by a majority vote of the city governing body or zone authority.

Source: S.L. 1999, ch. 369, § 1; 2001, ch. 55, § 12; 2001, ch. 359, § 1; 2009, ch. 353, § 1; 2013, ch. 449, § 2; 2017, ch. 277, § 4, effective August 1, 2017.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 449, S.L. 2013 is effective for taxable events occurring after December 31, 2012.

The 2009 amendment of this section by section 1 of chapter 353, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

Note.

Section 8 of chapter 277, S.L. 2017 provides, “ EFFECTIVE DATE. Sections 1 through 4 of this Act are effective for property tax incentives approved after July 31, 2017.”

40-63-02. Eligibility — Local zone authority designation.

Any incorporated city may apply to the department of commerce division of community services to designate a portion of the city as a renaissance zone. Any individual, partnership, limited partnership, limited liability company, trust, or corporation may apply for a tax credit or exemption under sections 40-63-04 through 40-63-07. The governing body of a city may designate a local zone authority to implement a development plan on behalf of the city.

Source: S.L. 1999, ch. 369, § 2; 2001, ch. 55, § 13; 2001, ch. 359, § 2.

Effective Date.

The 2001 amendment of this section by section 13 of chapter 55, S.L. 2001 became effective August 1, 2001.

The 2001 amendment of this section by section 2 of chapter 359, S.L. 2001 became effective August 1, 2001.

Note.

Section 40-63-02 was amended twice by the 2001 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 13 of chapter 55, S.L. 2001, and section 2 of chapter 359, S.L. 2001.

40-63-03. Renaissance zones.

  1. A city may apply to the department of commerce division of community services to designate a portion of that city as a renaissance zone if the following criteria are met:
    1. The geographic area proposed for the renaissance zone is located wholly within the boundaries of the city submitting the application.
    2. The application includes a development plan.
    3. The proposed renaissance zone is not more than thirty-four square blocks, except in a city with a population of greater than five thousand the renaissance zone may exceed thirty-four square blocks at the rate of one additional block for each additional five thousand population to a maximum size of forty-nine blocks. Population is based upon the most recent federal decennial census or federal census estimate.
    4. Except as provided under subdivision g, the proposed renaissance zone has a continuous boundary and all blocks are contiguous.
    5. The proposed land usage includes both commercial and residential property.
    6. The application includes the proposed duration of renaissance zone status, not to exceed fifteen years. Upon application by the city, the department of commerce division of community services may extend the duration of renaissance zone status in increments of up to five years.
    7. The proposed renaissance zone may have a single exception to the continuous boundary and contiguous block requirements under subdivision d if the area of the excepted noncontiguous blocks does not exceed three square blocks.
  2. The department of commerce division of community services shall:
    1. Review all applications for renaissance zone designation against the criteria established in this section and designate zones.
    2. Approve or reject the duration of renaissance zone status as submitted in an application.
    3. Approve or reject the geographic boundaries and total area of the renaissance zone as submitted in an application.
    4. Promote the renaissance zone program.
    5. Monitor the progress of the designated renaissance zones against submitted plans in an annual plan review.
    6. Report on renaissance zone progress to the governor and the legislative management on an annual basis until all designated zones expire.
  3. The department of commerce division of community services shall consider the following criteria in designating a renaissance zone:
    1. The viability of the development plan.
    2. The incorporation and enhancement of unique natural and historic features into the development plan.
    3. Whether the development plan is creative and innovative in comparison to other applications.
    4. Public and private commitment to and other resources available for the proposed renaissance zone, including the provisions for a renaissance fund organization.
    5. How renaissance zone designation would relate to a broader plan for the community as a whole.
    6. How the local regulatory burden, in particular that burden associated with the renovation of historic properties and that burden associated with mixed use development, will be eased for developers and investors in the renaissance zone.
    7. The strategies for the promotion, development, and management of the zone, including the use of a local zone authority if designated.
    8. Any other information required by the office.
  4. The department of commerce division of community services may not designate a portion of a city as a renaissance zone unless, as a part of the application, the city provides a resolution from the governing body of the city that states if the renaissance zone designation is granted, persons and property within the renaissance zone are exempt from taxes as provided in sections 40-63-04 through 40-63-07.
  5. A city may not propose or be part of more than one renaissance zone.
  6. A parcel of property may be exempted from property taxes under section 40-63-05 only once, but during the five taxable years of eligibility for that exemption, the property tax exemption transfers with the transfer of the property to a qualifying user. The ownership or lease of, or investment in, a parcel of property may qualify for exemption or credit under section 40-63-04 only once, but during the five taxable years of eligibility for that exemption or credit, the exemption or credit under section 40-63-04 transfers with the transfer of the property to a qualified user and with respect to the year in which the transfer is made must be prorated for use of the property during that year.
  7. A city may apply to the department of commerce division of community services at any time during the duration of a zone to expand a previously approved renaissance zone that is less than the maximum size allowed under subdivision c of subsection 1. If the expansion is approved by the department of commerce division of community services, the blocks in the expansion are eligible for up to fifteen years of renaissance zone status.
  8. The use of grant funds as the sole source of investment in the purchase of a building or space in a building does not qualify a taxpayer for any tax exemption or credit available under the chapter, and grant funds may not be counted in determining if the cost of rehabilitation meets or exceeds the current true and full value of the building.
  9. If a portion of an approved renaissance zone is not progressing, the city may request the department of commerce division of community services to permit deleting that portion and to make an adjustment of the boundaries to add another equal, contiguous area to the original zone.
  10. If within a renaissance zone there is property that is included in a tax increment financing district, the city in which the property is located shall provide the department of commerce an annual report regarding any such property at the time requested by the department of commerce. The report required under this subsection must identify the property, provide the expected duration of inclusion of the property in the tax increment financing district and the renaissance zone, and identify any property and income tax benefits of the property and the expected duration of those benefits. The department of commerce shall deliver an annual report compiling the information required under this subsection to the legislative management interim committee on taxation issues or upon request of any other interim committee of the legislative management.

If a city finds that renaissance zone projects have satisfactorily completed one or more blocks within the renaissance zone, the city may apply for and the department of commerce division of community services may approve withdrawal of those blocks from the renaissance zone and replacement of those blocks with other blocks that otherwise meet the requirements of this chapter.

Source: S.L. 1999, ch. 369, § 3; 2001, ch. 55, § 14; 2001, ch. 359, § 3; 2003, ch. 350, §§ 1, 2; 2007, ch. 353, § 1; 2009, ch. 353, § 2; 2009, ch. 354, § 1; 2009, ch. 482, § 30; 2011, ch. 301, § 1; 2015, ch. 282, § 1, effective January 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 142, S.L. 2015 became effective July 1, 2015.

The 2011 amendment of this section by section 1 of chapter 301, S.L. 2011 became effective August 1, 2011.

The 2009 amendment of this section by section 2 of chapter 353, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

The 2009 amendment of this section by section 1 of chapter 354, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

The 2009 amendment of this section by section 30 of chapter 482, S.L. 2009 became effective August 1, 2009.

The 2007 amendment of this section by section 1 of chapter 353, S.L. 2007 became effective July 1, 2007.

Note.

Section 40-63-03 was amended 3 times by the 2009 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 354, Session Laws 2009, House Bill 1428; section 2 of chapter 353, Session Laws 2009, Senate Bill 2060; and section 30 of chapter 482, Session Laws 2009, House Bill 1436.

40-63-04. Income tax exemptions.

  1. An individual taxpayer who purchases or rehabilitates single-family residential property for the individual’s primary place of residence as a zone project is exempt from up to ten thousand dollars of personal income tax liability as determined under section 57-38-30.3 for five taxable years beginning with the date of occupancy or completion of rehabilitation.
  2. A taxpayer that purchases, leases, rehabilitates, or makes leasehold improvements to residential, public utility infrastructure, or commercial property for any business or investment purpose as a zone project is exempt from tax on income derived from the business or investment locations within the zone for five taxable years, beginning with the date of purchase, lease, or completion of rehabilitation.
    1. The maximum amount of income that a taxpayer may exempt from tax under this subsection for any taxable year is five hundred thousand dollars. The limitation in this subdivision applies to the sum of the exempt income derived from the taxpayer’s business and investment interests in all zone projects.
    2. If a zone project consists of a physical expansion of an existing building owned and used by the taxpayer for business or investment purposes, the amount of income exempt from tax under this subsection is limited to an amount equal to the income derived from the business, or from the investment use of the building, during the taxable year multiplied by a ratio equal to the square footage added by the expansion divided by the total square footage of the building after expansion.
  3. If the cost of a new business purchase, leasehold improvement, or expansion of an existing business, approved as a zone project, exceeds seventy-five thousand dollars, and the business is located in a city with a population of not more than two thousand five hundred, an individual taxpayer may, in lieu of the exemption provided in subsection 2, elect to take an income tax exemption of up to two thousand dollars of individual income tax liability as determined under section 57-38-30.3. The election must be made on the taxpayer’s return as originally and timely filed. The election is irrevocable and binding for the duration of the exemptions provided in subsection 2 or this subsection. If an election is not made on the original return, the taxpayer is only eligible for the exemption provided in subsection 2.
  4. If a property owner not participating in a renaissance zone project is required to make changes in utility services or in a building structure because of changes made to property that is part of a zone project, the owner of the nonparticipating property is entitled to state income tax credits equal to the total amount of the investment necessary to complete the required changes. The credit must be approved by the local renaissance zone authority. The credit must be claimed in the taxable year in which the related project was completed. The credit may not exceed the taxpayer’s tax liability, and an unused credit may be carried forward up to five taxable years.
  5. The exemptions provided by this section do not eliminate any duty to file a return or to report income as required under chapter 57-38.

Source: S.L. 1999, ch. 369, § 4; 2001, ch. 359, § 4; 2009, ch. 353, § 3; 2009, ch. 545, § 6; 2011, ch. 302, § 1; 2013, ch. 317, § 1; 2013, ch. 449, § 3.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 317, S.L. 2013 is effective for zone projects approved after July 31, 2013.

The 2013 amendment of this section by section 3 of chapter 449, S.L. 2013 is effective for taxable years beginning after December 31, 2012.

This 2011 amendment of this section by section 1 of chapter 302, S.L. 2011 is effective for zone projects approved after December 31, 2010.

The 2009 amendment of this section by section 3 of chapter 353, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

The 2009 amendment of this section by section 6 of chapter 545, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

Note.

Section 40-63-04 was amended 2 times by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 3 of chapter 449, Session Laws 2013, Senate Bill 2325; and section 1 of chapter 317, Session Laws 2013, House Bill 1166.

Section 40-63-04 was amended 2 times by the 2009 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 3 of chapter 353, Session Laws 2009, Senate Bill 2060; and section 6 of chapter 545, Session Laws 2009, House Bill 1324.

40-63-05. Property tax exemptions.

  1. A municipality may grant a partial or complete exemption from ad valorem taxation on single-family residential property, exclusive of the land on which it is situated, if the property was purchased or rehabilitated by an individual for the individual’s primary place of residence as a zone project. An exemption granted under this subsection may not extend beyond five taxable years following the date of acquisition or completion of rehabilitation.
  2. A municipality may grant a partial or complete exemption from ad valorem taxation on buildings, structures, fixtures, and improvements purchased or rehabilitated as a zone project for any business or investment purpose. The state board of equalization may grant a partial or complete exemption from ad valorem taxation on public utility infrastructure rehabilitated as a zone project. An exemption under this subsection may not extend beyond five taxable years following the date of purchase or completion of rehabilitation.

Source: S.L. 1999, ch. 369, § 5; 2001, ch. 359, § 5; 2005, ch. 545, § 3; 2009, ch. 353, § 4.

Effective Date.

The 2009 amendment of this section by section 4 of chapter 353, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

The 2005 amendment of this section by section 3 of chapter 545, S.L. 2005 applies to taxable years beginning after December 31, 2004, pursuant to section 11 of chapter 545, S.L. 2005.

40-63-06. Historic preservation and renovation tax credit.

A credit against state tax liability as determined under sections 57-38-30 and 57-38-30.3 is allowed for investments in the historic preservation or renovation of property within the renaissance zone. The amount of the credit is twenty-five percent of the amount invested, up to a maximum of two hundred fifty thousand dollars. The credit may be claimed in the year in which the preservation or renovation is completed. Any excess credit may be carried forward for a period of up to five taxable years.

Source: S.L. 1999, ch. 369, § 6; 2001, ch. 359, § 6; 2009, ch. 545, § 7; 2013, ch. 449, § 4.

Effective Date.

The 2013 amendment of this section by section 4 of chapter 449, S.L. 2013 is effective for taxable years beginning after December 31, 2012.

The 2009 amendment of this section by section 7 of chapter 545, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

40-63-07. Renaissance fund organization — Exemption from taxation.

  1. Each city with a designated renaissance zone may establish a renaissance fund organization, if the detailed plan for such an organization is clearly established in the development plan and approved with the plan, or is submitted at a later date to the department of commerce division of community services for approval after the designation of a renaissance zone.
  2. The purpose of a renaissance fund organization is solely to raise funds to be used to finance zone projects and other projects located in designated renaissance zones. A renaissance fund organization may provide financing to projects undertaken by individuals, partnerships, limited partnerships, limited liability companies, trusts, corporations, nonprofit organizations, and public entities. The financing may include any combination of equity investments, loans, guarantees, and commitments for financing. The amount of financing is not limited by this chapter.
  3. A renaissance fund organization is exempt from any tax imposed by chapter 57-38. An exemption under this section may be passed through to any shareholder, partner, and owner if the renaissance fund organization is a passthrough entity for tax purposes. A corporation entitled to the exemption provided by this subsection shall file required returns and report income to the tax commissioner as required by the provisions of chapter 57-38 as if the exemption did not exist. If an employer, this subsection does not exempt a renaissance fund organization from complying with the income tax withholding laws.
  4. A credit against state tax liability as determined under section 57-38-30 or 57-38-30.3 is allowed for investments in a renaissance fund organization. The amount of the credit is fifty percent of the amount invested in the renaissance fund organization during the taxable year. Any amount of credit which exceeds a taxpayer’s tax liability for the taxable year may be carried forward for up to five taxable years after the taxable year in which the investment was made.
  5. The total amount of credits allowed under this section may not exceed, in the aggregate, ten million five hundred thousand dollars for investments in renaissance fund organizations. A renaissance fund organization that has received investments that qualify for the credits under this subsection shall use those investments to finance projects within a renaissance zone.
  6. Income to a renaissance fund organization derived from the sale or refinancing of zone properties financed wholly or in part by the organization may be disbursed as annual dividends equal to the income, minus ten percent, derived from all sources and proportional to the investment. In the event of a loss to the fund resulting in a temporary diminishment of the fund below the original principal amount, no annual dividend may be paid until the fund is restored.
  7. Income to a renaissance fund organization derived from interest or the temporary investment of its funds in certificates of deposit, bonds, treasury bills, or securities may be used for administration.
  8. If an investment in a renaissance fund organization which is the basis for a credit under this section is redeemed by the investor within ten years of the date it is purchased, the credit provided by this section for the investment must be disallowed, and any credit previously claimed and allowed with respect to the investment must be paid to the tax commissioner with the appropriate return of the taxpayer covering the period in which the redemption occurred. When payments are made to the tax commissioner under this section, the amount collected must be handled in the same manner as if no credit had been allowed.
  9. A renaissance fund organization shall secure an annual audit of its financial records, prepared by an independent certified public accounting firm in accordance with generally accepted auditing standards. The audit report must include a statement of the percentage of annual investments received by the organization which have been invested by the organization in investments permitted under this chapter, including the use of investments, distinguishing between organization investments made in renaissance zones and outside renaissance zones. A renaissance fund organization shall file a copy of each audit of its financial records under this subsection with the governing body of the city in which it was established, the department of commerce division of community services, and the tax commissioner. The department of commerce division of community services shall provide an annual report to the budget section of the legislative management showing the conclusions of audit reports filed under this subsection.
  10. Renaissance fund organization officers and employees may be actively involved in the enterprises in which the renaissance fund organization invests but the renaissance fund organization may not invest in any enterprise if any one renaissance fund organization officer or employee owns more than forty-nine percent of the ownership interest in the enterprise. A renaissance fund organization may not invest in an enterprise if renaissance fund organization officers and employees collectively own more than forty-nine percent of the ownership interests, either through direct ownership or through ownership of interest in a passthrough entity.

Source: S.L. 1999, ch. 369, § 7; 2001, ch. 359, § 7; 2001, ch. 360, § 1; 2003, ch. 48, § 30; 2003, ch. 351, § 1; 2009, ch. 354, § 2; 2009, ch. 482, § 98; 2009, ch. 545, § 8; 2011, ch. 303, §§ 1–3; 2013, ch. 449, § 5; 2015, ch. 282, § 2, eff for taxable years beginning after December 31, 2014.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 282, S.L. 2015 is effective for taxable events occurring after December 31, 2014.

The 2013 amendment of this section by section 5 of chapter 449, S.L. 2013 is effective for taxable years beginning after December 31, 2012.

The 2009 amendment of this section by section 2 of chapter 354, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

The 2009 amendment of this section by section 98 of chapter 482, S.L. 2009 became effective August 1, 2009.

The 2009 amendment of this section by section 8 of chapter 545, S.L. 2009 is effective for taxable years beginning after December 31, 2008.

Note.

Section 4 of chapter 303, S.L. 2011 provides: “ EFFECTIVE DATE. The changes in sections 1 and 2 of this Act requiring a renaissance fund organization to limit its financing to projects located in a renaissance zone are effective for new financing initiated after December 31, 2011. Section 3 of this Act is effective for investments made in or by a renaissance fund organization after December 31, 2011.”

Section 40-63-07 was amended 3 times by the 2009 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 2 of chapter 354, Session Laws 2009, House Bill 1428; section 8 of chapter 545, Session Laws 2009, House Bill 1324; and section 98 of chapter 482, Session Laws 2009, House Bill 1436.

40-63-08. Contributions — Use. [Repealed]

Repealed by S.L. 2001, ch. 359, § 11.

40-63-09. Rules and administration — Income tax secrecy exception.

The tax commissioner shall administer this chapter with respect to an income tax exemption or credit and has the same powers as provided under section 57-38-56 for purposes of this chapter. The secrecy provisions of section 57-38-57 do not apply to exemptions or credits received by taxpayers under sections 40-63-04, 40-63-06, and 40-63-07, but only when a local zone authority inquires of the tax commissioner about exemptions or credits claimed under sections 40-63-04, 40-63-06, and 40-63-07 with regard to that local zone authority or to the extent necessary for the tax commissioner to administer the tax exemptions or credits.

Source: S.L. 1999, ch. 369, § 9; 2001, ch. 55, § 15; 2001, ch. 359, § 8.

40-63-10. Passthrough of tax exemption or credit.

A partnership, subchapter S corporation, limited partnership, limited liability company, or any other passthrough entity that purchases or leases property in a renaissance zone for any business purpose, invests in a historic preservation or renovation of property within a renaissance zone, or invests in a renaissance fund organization must be considered to be the taxpayer for purposes of any investment limitations in sections 40-63-04, 40-63-06, and 40-63-07, and the amount of the exemption or credit allowed with respect to the entity’s investments must be determined at the passthrough entity level. The amount of the total exemption or credit determined at the entity level must be passed through to the partners, shareholders, or members in proportion to their respective interests in the passthrough entity.

Source: S.L. 1999, ch. 369, § 10; 2001, ch. 359, § 9.

40-63-11. Tax benefits not available to delinquent taxpayer.

A taxpayer may not be delinquent in payment of any state and local tax liability to be eligible for a tax benefit under this chapter.

Source: S.L. 2001, ch. 359, § 10.