ND League of Cities Sept. 17, 2016 HOME RULE POWERS ND League of Cities Sept. 17, 2016

Why “home rule”? Why? Because you get “extra powers” The more obvious examples: City sales tax Eminent domain powers Mill levy caps [N.D.C.C, §57-15-01.1(2015)] To do anything that is not addressed in state law If authorized by home rule charter e.g. a city ordinance

How to become home rule city Step 1: Proposal for home rule charter Petition (15% of electors from last city election) or City Council approval

How to become home rule city Step 2: Charter commission established Appointed by City Council (or by petition) At least 5 members The charter commission drafts the home rule charter (or use ND League of Cities model HRC!!!) Must finish drafting within one year Must hold a public hearing Must publish HRC charter in official newspaper If pop 1000 or less—may distribute door-to-door and post in prominent locations Publish notice of election See N.D.C.C. §40-05.1-03

How to become home rule city Step 3. City-wide vote on charter Vote at least 60 days but no more than 2 yrs from delivery to governing body Charter ratified by majority vote Step 4. File copies of ratified charter with Sec of State and with City Auditor. Step 5. You’re done—relax and enjoy. Remember: The powers established by HRC must be implemented with an ordinance. N.D. Cent. Code, § 40-05.1-06

Where’s the “law” re Home Rule? N.D. Constitution. Article VII (Political Subdivisions). Section 6 [Home rule] The legislature “shall provide by law for the establishment and exercise of home rule in counties and cities.”

Where’s the “law” re Home Rule? NDCC Chapter 40-05.1 Home rule powers for cities County home rule in NDCC Title 11 Contains process for approval Contains powers

Examples of home rule powers Eminent domain. NDCC §40-50.1-06. Powers. 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. [emphasis added]

Examples of home rule powers Sales taxes. 16. To impose registration fees on motor vehicles, farm machinery gross receipts taxes, alcoholic beverage gross receipts taxes, or sales and use taxes in addition to any other taxes imposed by law…. [NDCC §40-50.1-06 subs. 16] Note: To enact sales tax, will need to include sales tax in your home rule charter (or amend existing home rule charter) by city-wide vote.

Examples of home rule powers Power to engage in various enterprises: 10. 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. [NDCC §40-50.1-06 subs. 10] Compare with non-home-rule powers that :Only powers for enumerated utilities (i.e. draw and treat water, street lights, gas plants, sewer)

Examples of home rule powers Power to enact “optional levies” in addition to mill levy caps. See: N.D. Cent. Code, §57-15-01.1 (2015)

How powerful are they? “It is the intention of [the HRC chapter] to grant and confirm to the people of all [HRC cities] 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.” N.D. Cent. Code, § 40-05.1-06

How powerful are they? Some specific state legislation – restricts HRC powers: No [state-defined] offense shall be superseded by any city or county ordinance, or city or county home rule charter….N.D. Cent. Code, § 12.1-01-05. See also: Sauby v. City of Fargo, 2008 ND 60 (2008)(the “traffic fines” case) a sign placed on private property which displays a political message may not be restricted by a political subdivision, including a home rule city or county, unless the political subdivision demonstrates a burden to the public safety. N.D. Cent. Code, § 16.1-10-06 sub. 3 (enacted in 2013)

GENERAL REFERENCES: ND LEAGUE OF CITIES MODEL Home Rule Charter

GENERAL REFERENCES: ND Century Code http://www.legis.nd.gov/general- information/north-dakota-century-code Chapter 40-05 (Powers in Cities) Chapter 40-05.1 (Home Rule in Cities) ND Constitution Article VII, Section 6 ND Attorney General opinions Go to AG website: http://www.ag.nd.gov/ Click on “Legal Opinions” – look for “Cumulative Index to Opinions” and see opinions regarding home rule

Home Rule Cities QUESTIONS?