101–Legal Status of the Service Cooperative

POLICY 101

ADOPTED: September 2002

Revised:  July 2003

                                                                                                                     

101      LEGAL STATUS OF THE NORTHWEST SERVICE COOPERATIVE

I. PURPOSE

It is a primary principle of this nation that the public welfare demands an educated and informed citizenry.  The power to provide services for public entities is a state function vested in the state legislature and delegated to local Service Cooperatives as well as school districts and other agencies.  The purpose of this policy is to clarify the legal status of the Northwest Service Cooperative.

 

II. GENERAL STATEMENT OF POLICY

  1. The Northwest Service Cooperative is a public corporation subject to the control of the legislature, limited only by constitutional restrictions. The Service Cooperative has been created for educational and other governmental agency, training and service purposes.
  2. The legislature has authority to prescribe the Service Cooperative’s powers and privileges, its boundaries and territorial jurisdictions.
  3. The Service Cooperative has only the powers conferred on it by the legislature; however, the Service Cooperative’s authority to conduct the business of the Service Cooperative includes implied powers in addition to any specific powers granted by the legislature.

 

III. RELATIONSHIP TO OTHER ENTITIES

  1. The Northwest Service Cooperative is a separate legal entity.
  2. The NWSC is not subordinate to the county(ies) in which it is situated.
  3. The Service Cooperative district is not subservient to municipalities within its territory.
  4. School districts, cities, counties and other governmental agencies may be members of this unit.

 

IV.  POWERS AND AUTHORITY OF THE SERVICE COOPERATIVES

  • Funds
  1. The Service Cooperative, through its Board of Directors, has authority to raise funds for the operation and maintenance of its business and, has authority to manage and expend such funds, subject to applicable law.
  2. The Service Cooperative has wide discretion over the expenditure of funds under its control for public purposes, subject to the limitations provided by law.
  3. Service Cooperative officials occupy a fiduciary position in the management and expenditure of funds entrusted to them.
  • Raising Funds
  1. The Service Cooperative shall, within the limitations specified by law, authorize payment of indebtedness and all proper expenses.
  2. The Service Cooperative may issue bonds in accordance with the provisions of Minn. Stat. Ch. 475, or other applicable law.
  3. The Service Cooperative has authority to accept gifts and donations for business purposes, subject to applicable law.
  • Property
  1. The Service Cooperative may acquire property for business purposes. It may sell, exchange, or otherwise dispose of property which is no longer needed for Service Cooperative purposes, subject to applicable law.
  2. The Service Cooperative shall manage its property in a manner consistent with the educational and training functions of the Cooperative.
  3. The Service Cooperative may permit the use of its facilities for community purposes which are not inconsistent with, nor disruptive of, its service and training mission.
  • Contracts
  1. The Service Cooperative is empowered to enter into contracts in the manner provided by law.
  2. The Service Cooperative has authority to enter into installment purchases and leases with an option to purchase, pursuant to Minn. Stat. § 465.71 or other applicable law.
  3. The Service Cooperative has authority to make contracts with other governmental agencies and units for the purchase, lease or other acquisition of equipment, supplies, materials, or other property, including real property.

 

  • The Service Cooperative has authority to enter into employment contracts.

 

  • Actions and Suits
  1. The Service Cooperative has authority to sue and to be sued.

 

V.  JOINT POWERS ORGANIZATION

  • The Northwest Service Cooperative is organized under current statue MS 123.A.21.

 

  • Each local Service Cooperative will establish its own bylaws to specify governance and operations.

 

Legal References:      Minn. Const. art. 13, § 1

Minn. Stat. Ch. 123B. (Service Cooperatives, Powers and Duties)

Minn. Stat. Ch. 179A (Public Employment Labor Relations)

Minn. Stat. § 465.035 (Conveyance or Lease of Land)

Minn. Stat. §§ 465.71; 471.345; 471.6161; 471.64 (rights, powers, duties of political subdivisions)

Minnesota Association of Public Schools v. Hanson, 287 Minn. 415, 178 N.W.2d 846 (1970)

Independent Service Cooperative No. 581 v. Mattheis, 275 Minn. 383, 147 N.W.2d 374 (1966)

Village of Blaine v. Independent Service Cooperative No. 12, 272 Minn. 343, 138 N.W.2d 32 (1965)

Huffman v. School Board, 230 Minn. 289, 41 N.W.2d 455 (1950)

State v. Lakeside Land Co., 71 Minn. 283, 73 N.W.970 (1898)

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Northwest Service Cooperative Policy Manual and By-Laws Copyright © by Updated by the Northwest Service Cooperative. All Rights Reserved.

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