§ 463. Manner of authorizing interlocal agreements. An interlocal
agreement must be authorized and approved by the governing body of the
contracting public agency of this state, subject to the following
requirements:

1. If the same or substantially similar services, facilities,
personnel, equipment, other property or resources may be received,
obtained, provided or furnished, or the same or substantially similar
functions or activities engaged in or performed under the laws of this
state by a joint agreement or undertaking between or among public
agencies within this state, and if the statutes applicable to such joint
agreement or undertaking require the holding of a public hearing or make
it subject to a referendum, the governing board of the contracting
public agency of this state shall, before it approves the interlocal
agreement, hold a public hearing or provide the same type of referendum
in substantially the same manner and on substantially the same notice
provided in such statutes.

2. If the contracting public agency of this state has the authority to
receive, obtain, provide or furnish the same or substantially similar
services, facilities, personnel, equipment, other property or resources,
or to engage in or perform the same or substantially similar functions
or activities without an interlocal agreement only after a public
hearing or subject to a referendum, and if the provisions of subdivision
one of this section shall not apply, the governing board of the
contracting public agency of this state shall, before it approves the
interlocal agreement, hold a public hearing or provide the same type of
referendum in the same manner and on the same notice as though such
public agency were receiving, obtaining, providing or furnishing such
services, facilities, personnel, equipment, other property or resources,
or engaging in or performing such functions or activities without an
interlocal agreement.

3. An interlocal agreement not covered by subdivision one or
subdivision two of this section shall be approved only after the
governing board of the contracting public agency of this state has held
a public hearing on the interlocal agreement. Notice of such public
hearing shall be published at least twice in a newspaper having general
circulation in the territory of such contracting public agency not less
than ten days nor more than twenty days before the day designated
therein for the hearing. Such notice shall contain a brief description
in general terms of the interlocal agreement and specify the place where
and time when the governing board will meet to consider such interlocal
agreement and to hear all interested persons.