(1) A city of the primary class, city of the first class, city of the second class, or village may sell or transfer any waterworks, sewer system, or water system owned by such city or village to an Indian tribe if the following requirements are met:

(a) The waterworks, sewer system, or water system must be located or operating in its entirety within the tribal lands of such Indian tribe;

(b) The tribal headquarters of such Indian tribe must be located in such city or village; and

(c) The sale or transfer must be approved by the qualified electors of such city or village at a general or special election described in subsection (2) of this section.

(2) The governing body of the city or village seeking to sell or transfer any waterworks, sewer system, or water system under this section shall submit such question or proposition, in the usual manner, to the qualified electors of such city or village at any general city or village election or at any special city or village election and may submit the proposition in connection with any city or village special election called for any other purpose, and the votes cast thereon shall be canvassed and the result found and declared as in any other city or village election.

(3) For purposes of this section, Indian tribe means an Indian tribe or band which is recognized by federal law or formally acknowledged by the state as of January 1, 2026.