1.1 	A bill for an act
1.2 	relating to waters; authorizing the Lower Minnesota River Watershed District 
1.3 	to acquire, maintain, operate, improve, and enlarge a site for the deposit of 
1.4 	dredge material, issue and sell general obligation bonds or revenue bonds for 
1.5 	the acquisition, maintenance, operation, improvement, and enlargement of the 
1.6 	dredge material site, and charge fees for permitting private customers to deposit 
1.7 	dredge material at the dredge material site.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1.LOWER MINNESOTA RIVER WATERSHED DISTRICT; 
1.10 	AUTHORITY TO ACQUIRE, MAINTAIN, OPERATE, IMPROVE, AND 
1.11 	ENLARGE DREDGE MATERIAL SITE.
 1.12 		Subdivision 1.Definitions. The definitions in this subdivision apply to this act: 
1.13 	(1) "district" means the Lower Minnesota River Watershed District, a district 
1.14 	established under Minnesota Statutes, chapter 103D; 
1.15 	(2) "governing body" means the managers of the district as defined in Minnesota 
1.16 	Statutes, section 103D.011, subdivision 15; and 
1.17 	(3) "dredge material site" means a site at which public agencies or private customers 
1.18 	may deposit material from dredging activities conducted on the Minnesota River.
1.19 		Subd. 2.Authorization; authority to own and operate. The district may own 
1.20 	and operate a dredge material site for its own needs, the needs of other public agencies, 
1.21 	the needs of private customers, or any combination of these. The district may acquire, 
1.22 	construct, and install all facilities needed for that purpose and may lease, purchase, or 
1.23 	acquire by exercise of the power of eminent domain any existing properties so needed. 
1.24 	The district may sell the dredge material to any person or entity. If the governing body 
1.25 	determines that the dredge material has no value, the district may convey the dredge 
2.1 	material for no consideration to any person or entity. The district may hire all personnel 
2.2 	the governing body deems necessary and may make all necessary rules and regulations for 
2.3 	the operation and maintenance of the dredge material site.
2.4 		Subd. 3.Financing. (a) To acquire property under subdivision 2, pay the cost of 
2.5 	maintaining, improving, or enlarging the dredge material site or any portion thereof, and 
2.6 	obtain and comply with permits required by law for the dredge material site, the district 
2.7 	may: 
2.8 	(1) issue and sell its general obligation bonds, which shall be made payable from net 
2.9 	revenues derived from the charges imposed on private customers as provided in section 
2.10 	2, real estate tax revenues, special assessment revenues to be levied, or two or more 
2.11 	of these sources; or
2.12 	(2) issue revenue bonds, payable solely from net revenues derived from the charges 
2.13 	imposed on private customers, specific tax revenues expressly pledged to payment of the 
2.14 	debt service on the revenue bonds, specific special assessment revenues expressly pledged 
2.15 	to payment of the debt service on the revenue bonds, or two or more of these sources.
2.16 	 (b) Real estate tax revenues and special assessment revenues shall be applied to the 
2.17 	payment of the debt service on general obligation bonds or revenue bonds only in the 
2.18 	event that net revenues derived from the charges imposed on private customers are not 
2.19 	sufficient to pay all principal of and interest on the bonds when due. 
2.20 	(c) All bonds shall be issued and sold according to Minnesota Statutes, chapter 
2.21 	475. If special assessments are pledged for the payment of the obligations, they shall be 
2.22 	authorized and issued according to Minnesota Statutes, chapter 103D.

2.23 	Sec. 2.AUTHORITY TO IMPOSE CHARGES.
 2.24 		Subdivision 1.Charges; net revenues. (a) To pay for the acquisition, maintenance, 
2.25 	operation, improvement, and enlargement of the dredge material site and to obtain and 
2.26 	comply with permits required by law for the dredge material site, the governing body may 
2.27 	impose charges for permitting private customers to deposit dredge material at the dredge 
2.28 	material site and make contracts for the charges as provided in this section.
2.29 	(b) The amount of the charges imposed shall be established at the discretion of the 
2.30 	governing body. In determining the amount of the charges to be imposed, the governing 
2.31 	body may give consideration to all costs of the operation and maintenance of the dredge 
2.32 	material site, the costs of depreciation and replacement of structures and equipment, the 
2.33 	costs of improvements and enlargements, the cost of reimbursing the district for special 
2.34 	assessment revenues expended for the benefit of persons or entities not subject to special 
2.35 	assessment levies by the district, the amount of the principal and interest to become due 
3.1 	on obligations issued or to be issued, the costs of obtaining and complying with permits 
3.2 	required by law, the price charged for similar services by other providers of dredge 
3.3 	material sites in similar markets, and all other factors the governing body deems relevant.
3.4 	(c) At its discretion, the governing body may impose a surcharge on private 
3.5 	customers using the dredge material site in addition to the charges allowed under 
3.6 	paragraph (a). The surcharge shall be for the purpose of paying for the removal of dredge 
3.7 	material from the dredging site if the governing body determines it necessary. If the 
3.8 	governing body later determines that there is no need to pay for the removal of the dredge 
3.9 	material from the dredge material site, the governing body shall rebate all surcharges 
3.10 	paid by private customers.
3.11 		Subd. 2.Covenants to secure debt payments. (a) In any resolution authorizing 
3.12 	the issuance of either general obligation bonds or revenue bonds and pledging revenues 
3.13 	and other security to the payment of the debt service on the bonds, the governing body 
3.14 	may make covenants for the protection and benefit of the holders of the bonds as it deems 
3.15 	necessary or appropriate including, but without limitation, a covenant that the district will 
3.16 	impose and collect charges of the nature authorized by this section at the times and in the 
3.17 	amounts required to produce, together with any tax revenues, special assessment revenues, 
3.18 	or other revenues pledged to payment of the obligations, net revenues adequate to pay all 
3.19 	principal and interest when due on the bonds and to create and maintain reserves securing 
3.20 	the payment of the principal and interest when due on the bonds.
3.21 	(b) The covenants made for the protection and benefit of the holders of the bonds 
3.22 	of the district shall be enforceable by appropriate action on the part of any holder of the 
3.23 	bonds or any taxpayer of the district in a court of competent jurisdiction.

3.24 	Sec. 3. EFFECTIVE DATE.
 3.25 	Sections 1 and 2 are effective the day following final enactment.