1.1                          A bill for an act 
  1.2             relating to natural resources; updating soil and water 
  1.3             conservation district law; changing requirements for 
  1.4             petitions and elections relating to soil and water 
  1.5             conservation districts; allowing counties the option 
  1.6             to authorize soil and water conservation district 
  1.7             levies; adding soil and water conservation districts 
  1.8             to the definition of special taxing district; 
  1.9             clarifying removal provisions for soil and water 
  1.10            conservation district supervisors; amending Minnesota 
  1.11            Statutes 2002, sections 103A.206; 103C.005; 103C.101, 
  1.12            subdivisions 6, 9, by adding a subdivision; 103C.201, 
  1.13            subdivisions 1, 2, 5, 6, 7, 8; 103C.205; 103C.211; 
  1.14            103C.225, subdivisions 1, 3, 4, 8; 103C.305, 
  1.15            subdivision 1; 103C.311, subdivisions 1, 2; 103C.315, 
  1.16            subdivisions 1, 2, 4, 5; 103C.331, subdivisions 11, 
  1.17            12, 16, 19, by adding a subdivision; 103C.401, 
  1.18            subdivisions 1, 2; 275.066; 351.14, subdivision 5; 
  1.19            proposing coding for new law in Minnesota Statutes, 
  1.20            chapter 103C; repealing Minnesota Statutes 2002, 
  1.21            section 103C.301. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 2002, section 103A.206, is 
  1.24  amended to read: 
  1.25     103A.206 [SOIL AND WATER CONSERVATION POLICY.] 
  1.26     Improper land use practices have caused serious wind and 
  1.27  water erosion of the land of this state, the runoff of polluting 
  1.28  materials, increased costs to maintain agricultural 
  1.29  productivity, increased energy costs and increased flood 
  1.30  damage Maintaining and enhancing the quality of soil and water 
  1.31  for the environmental and economic benefits they produce, 
  1.32  preventing degradation, and restoring degraded soil and water 
  1.33  resources of this state contribute greatly to the health, 
  2.1   safety, economic well-being, and general welfare of this state 
  2.2   and its citizens.  Land occupiers have the responsibility to 
  2.3   implement practices to correct these conditions and that 
  2.4   conserve the soil and water resources of the state.  It is Soil 
  2.5   and water conservation measures implemented on private lands in 
  2.6   this state provide benefits to the general public by reducing 
  2.7   erosion, sedimentation, siltation, water pollution, and damages 
  2.8   caused by floods.  The soil and water conservation policy of the 
  2.9   state is to encourage land occupiers to conserve soil and, water 
  2.10  , and the natural resources they support through the 
  2.11  implementation of practices that effectively reduce or: 
  2.12     (1) control or prevent erosion, sedimentation, siltation 
  2.13  and agriculturally related pollution in order to preserve 
  2.14  natural resources,; 
  2.15     (2) ensure continued soil productivity,; 
  2.16     (3) control floods, protect water quality; 
  2.17     (4) prevent impairment of dams and reservoirs,; 
  2.18     (5) assist in maintaining the navigability of rivers and 
  2.19  harbors, reduce damages caused by floods; 
  2.20     (6) preserve wildlife,; 
  2.21     (7) protect the tax base,; and 
  2.22     (8) protect public lands and waters. 
  2.23     Sec. 2.  Minnesota Statutes 2002, section 103C.005, is 
  2.24  amended to read: 
  2.25     103C.005 [SOIL AND WATER CONSERVATION POLICY.] 
  2.26     Improper land use practices have caused serious wind and 
  2.27  water erosion of the land of this state, the runoff of polluting 
  2.28  materials, increased costs to maintain agricultural 
  2.29  productivity, increased energy costs and increased flood 
  2.30  damage Maintaining and enhancing the quality of soil and water 
  2.31  for the environmental and economic benefits they produce, 
  2.32  preventing degradation, and restoring degraded soil and water 
  2.33  resources of this state contribute greatly to the health, 
  2.34  safety, economic well-being, and general welfare of this state 
  2.35  and its citizens.  Land occupiers have the responsibility to 
  2.36  implement practices to correct these conditions and that 
  3.1   conserve the soil and water resources of the state.  It is Soil 
  3.2   and water conservation measures implemented on private lands in 
  3.3   this state provide benefits to the general public by reducing 
  3.4   erosion, sedimentation, siltation, water pollution, and damages 
  3.5   caused by floods.  The soil and water conservation policy of the 
  3.6   state is to encourage land occupiers to conserve soil and, water 
  3.7   , and the natural resources they support through the 
  3.8   implementation of practices that effectively reduce or: 
  3.9      (1) control or prevent erosion, sedimentation, siltation 
  3.10  and agriculturally related pollution in order to preserve 
  3.11  natural resources,; 
  3.12     (2) ensure continued soil productivity,; 
  3.13     (3) control floods, protect water quality; 
  3.14     (4) prevent impairment of dams and reservoirs,; 
  3.15     (5) assist in maintaining the navigability of rivers and 
  3.16  harbors, reduce damages caused by floods; 
  3.17     (6) preserve wildlife,; 
  3.18     (7) protect the tax base,; and 
  3.19     (8) protect public lands and waters. 
  3.20     Sec. 3.  Minnesota Statutes 2002, section 103C.101, 
  3.21  subdivision 6, is amended to read: 
  3.22     Subd. 6.  [FEDERAL.] "Federal" means the United States, the 
  3.23  soil natural resources conservation service of the United States 
  3.24  Department of Agriculture, and agencies or instrumentalities, 
  3.25  corporate or otherwise, of the United States.  
  3.26     Sec. 4.  Minnesota Statutes 2002, section 103C.101, 
  3.27  subdivision 9, is amended to read: 
  3.28     Subd. 9.  [NOMINATING PETITION.] "Nominating petition" 
  3.29  means a petition filed under sections 103C.301, subdivision 1, 
  3.30  and section 103C.305, subdivision 2, to nominate candidates for 
  3.31  the office of supervisor.  
  3.32     Sec. 5.  Minnesota Statutes 2002, section 103C.101, is 
  3.33  amended by adding a subdivision to read: 
  3.34     Subd. 9a.  [RESIDENT OWNER.] "Resident owner" has the 
  3.35  meaning given in section 103D.011, subdivision 25. 
  3.36     Sec. 6.  Minnesota Statutes 2002, section 103C.201, 
  4.1   subdivision 1, is amended to read: 
  4.2      Subdivision 1.  [PETITION.] (a) Twenty-five land occupiers 
  4.3   in an area proposed to be organized into a district may file A 
  4.4   petition must be signed by at least 50 resident owners in an 
  4.5   area proposed to be organized into a district and filed with the 
  4.6   state board requesting that a soil and water conservation 
  4.7   district be organized to function in the area described in the 
  4.8   petition.  The petition must state: 
  4.9      (1) the proposed name of the district; 
  4.10     (2) that there is need, in the interest of the public 
  4.11  health, safety, and welfare, for a district in the described 
  4.12  area; 
  4.13     (3) a description of the area proposed to be organized as a 
  4.14  district, which need not be by metes and bounds or legal 
  4.15  subdivision, but may be by general description that identifies 
  4.16  the area; 
  4.17     (4) a request that the state board define the boundaries 
  4.18  for the district; 
  4.19     (5) a request for a referendum to be held in the defined 
  4.20  territory on the question of the creation of a district in the 
  4.21  territory; and 
  4.22     (6) a request by the state board to determine that a 
  4.23  district be established.  
  4.24     (b) If more than one petition is filed covering parts of 
  4.25  the same area, the state board may consolidate the petitions.  
  4.26     Sec. 7.  Minnesota Statutes 2002, section 103C.201, 
  4.27  subdivision 2, is amended to read: 
  4.28     Subd. 2.  [HEARINGS.] (a) By 30 days after a petition has 
  4.29  been filed with the state board, the state board may give due 
  4.30  notice of a proposed hearing, to be held by the state board or a 
  4.31  designated agent, on: 
  4.32     (1) the question of the desirability and necessity, in the 
  4.33  interest of the public health, safety, and welfare, for the 
  4.34  establishment of a district; 
  4.35     (2) the appropriate boundaries of the district; 
  4.36     (3) the propriety of the petition and other proceedings 
  5.1   taken under this section; and 
  5.2      (4) other questions relevant to clauses (1), (2), and (3).  
  5.3      (b) Land occupiers Residents in the area described in the 
  5.4   petition and in the area considered for addition to the 
  5.5   described area and other interested parties may attend the 
  5.6   hearing and be heard.  If after a hearing, the state board 
  5.7   determines it may be desirable to include in the proposed 
  5.8   district area outside the area where notice of the hearing was 
  5.9   given, the hearing must be adjourned and due notice of the 
  5.10  continued hearing must be given throughout the entire area 
  5.11  considered for inclusion in the district, and the continued 
  5.12  hearing held.  
  5.13     Sec. 8.  Minnesota Statutes 2002, section 103C.201, 
  5.14  subdivision 5, is amended to read: 
  5.15     Subd. 5.  [REFERENDUM FOR DISTRICT ESTABLISHMENT.] (a) 
  5.16  After the state board has made and recorded a determination that 
  5.17  there is a need for a district in a particular area and has 
  5.18  defined the boundaries, the state board shall consider whether 
  5.19  the operation of a district within the boundaries is 
  5.20  administratively feasible.  To assist the state board to 
  5.21  determine the feasibility, the state board shall, within a 
  5.22  reasonable time after entry of the finding that there is a need 
  5.23  for the proposed district, give notice of and hold a referendum 
  5.24  within the proposed district on the creation of the district 
  5.25  schedule the referendum at the next general election and shall 
  5.26  cooperate with county election officials to accomplish the 
  5.27  election in the most expedient manner.  
  5.28     (b) The question shall be submitted by ballots with: 
  5.29     (1) the words printed "For creation of a soil and water 
  5.30  conservation district of the lands described below in the county 
  5.31  (or counties) of ........... and .........." and "Against 
  5.32  establishment of a soil and water conservation district of the 
  5.33  lands described below in the county (or counties) of ........ 
  5.34  and ........"; 
  5.35     (2) a square before each proposition and a direction to 
  5.36  insert an X mark in the square before one proposition or the 
  6.1   other as the voter may favor or oppose establishment of the 
  6.2   district; and 
  6.3      (3) the boundaries of the proposed district.  
  6.4      (c) Only land occupiers in eligible voters residing within 
  6.5   the boundaries of the proposed district, as determined by the 
  6.6   state board, may vote in the referendum.  
  6.7      Sec. 9.  Minnesota Statutes 2002, section 103C.201, 
  6.8   subdivision 6, is amended to read: 
  6.9      Subd. 6.  [ADMINISTRATION OF HEARING AND REFERENDUM.] The 
  6.10  state board shall pay the expenses for the notices and the 
  6.11  conduct of the hearing and referendum, and supervise their 
  6.12  conduct.  The state board shall issue rules governing the 
  6.13  conduct of hearings and referenda, and providing for the 
  6.14  registration, before the date of the referendum, of all eligible 
  6.15  voters, or prescribing some other appropriate procedure to 
  6.16  determine eligible voters.  The state board shall schedule the 
  6.17  referendum at the next general election and shall cooperate with 
  6.18  county election officials to accomplish the election in the most 
  6.19  expedient manner.  Informalities in the conduct of a referendum 
  6.20  or in a matter related to it do not invalidate the referendum or 
  6.21  its result if notice of it has been given substantially as 
  6.22  provided by this section and the referendum has been fairly 
  6.23  conducted.  
  6.24     Sec. 10.  Minnesota Statutes 2002, section 103C.201, 
  6.25  subdivision 7, is amended to read: 
  6.26     Subd. 7.  [DETERMINATION AFTER REFERENDUM.] (a) The state 
  6.27  board shall publish the result of the referendum and then 
  6.28  determine whether the operation of a district in the defined 
  6.29  boundaries is administratively feasible.  In making the 
  6.30  determination, the state board must consider the policy in 
  6.31  section 103A.206, and: 
  6.32     (1) the attitudes of the land occupiers in the defined 
  6.33  boundaries; 
  6.34     (2) the number of land occupiers eligible to vote eligible 
  6.35  voters who voted in the referendum who have voted; 
  6.36     (3) the proportion of the votes cast in the referendum in 
  7.1   favor of establishing the district to the total number of votes 
  7.2   cast; 
  7.3      (4) the approximate wealth and income of the land occupiers 
  7.4   of the proposed district; 
  7.5      (5) the probable expense of carrying on erosion-control 
  7.6   operations and related water quality improvements within the 
  7.7   district; and 
  7.8      (6) other relevant economic and social factors.  The state 
  7.9   board may not determine that the operation of the proposed 
  7.10  district within the defined boundaries is administratively 
  7.11  feasible unless a majority of the votes cast in the referendum 
  7.12  on establishment of the district have been cast in favor of 
  7.13  establishing the district.  
  7.14     (b) If the state board determines that the operation of the 
  7.15  district is not administratively feasible, the state board shall 
  7.16  record the determination and deny the petition.  Six months 
  7.17  after the date of entry of a determination by the state board 
  7.18  that operation of a proposed district is not administratively 
  7.19  feasible, a new petition may be filed and a new proceeding 
  7.20  started.  
  7.21     (c) If the state board determines that the operation of the 
  7.22  district is administratively feasible, it shall record the 
  7.23  determination and proceed with the establishment and 
  7.24  organization of the district.  
  7.25     Sec. 11.  Minnesota Statutes 2002, section 103C.201, 
  7.26  subdivision 8, is amended to read: 
  7.27     Subd. 8.  [APPLICATION BY SUPERVISORS TO SECRETARY OF 
  7.28  STATE.] (a) The district shall be a governmental subdivision of 
  7.29  this state and a public body corporate and politic after the 
  7.30  actions in this subdivision are taken.  
  7.31     (b) If the state board determines that the operation of the 
  7.32  proposed district within the defined boundaries is 
  7.33  administratively feasible, the state board must appoint two 
  7.34  supervisors to act, with the three elected supervisors, as the 
  7.35  district board within 30 days after the district is 
  7.36  established.  A majority of the supervisors' terms must expire 
  8.1   after the next general election following their appointments and 
  8.2   the remaining supervisors' terms expire after the second general 
  8.3   election following their appointments. 
  8.4      (c) The two appointed supervisors shall sign and present an 
  8.5   application to the secretary of state with the following 
  8.6   recitals: 
  8.7      (1) a petition for the establishment of a district was 
  8.8   filed with the state board; 
  8.9      (2) the proper proceedings were taken relating to the 
  8.10  petition; 
  8.11     (3) the application is being filed to complete the 
  8.12  organization of the district as a governmental subdivision and a 
  8.13  public body, corporate or politic; 
  8.14     (4) the state board has appointed the signers as 
  8.15  supervisors; 
  8.16     (5) the name and official residence of each supervisor, 
  8.17  with a certified copy of the supervisor's appointment; 
  8.18     (6) the term of office of each supervisor; 
  8.19     (7) the name proposed for the district; and 
  8.20     (8) the location of the principal office of the district 
  8.21  board.  
  8.22     (d) The application shall be subscribed and sworn to by 
  8.23  each supervisor before an officer authorized by state law to 
  8.24  take oaths.  The officer shall certify upon the application that 
  8.25  the officer has personal knowledge of the supervisors, that they 
  8.26  are the supervisors named in the application, and that each 
  8.27  supervisor has signed the application in the officer's presence. 
  8.28     Sec. 12.  Minnesota Statutes 2002, section 103C.205, is 
  8.29  amended to read: 
  8.30     103C.205 [ANNEXING ADDITIONAL AREA.] 
  8.31     (a) Land occupiers Resident owners may file a petition to 
  8.32  include additional area within an existing district with the 
  8.33  state board.  The procedure for a petition to establish a 
  8.34  district shall be followed on a petition to include additional 
  8.35  area.  The state board shall prescribe the form for the 
  8.36  petition, which shall be as nearly as possible in the form for a 
  9.1   petition to organize a district.  
  9.2      (b) If the number of land occupiers in the petition for an 
  9.3   area proposed for inclusion is less than 25, the petition may be 
  9.4   filed when signed by a majority of the land occupiers resident 
  9.5   owners in the area and, a referendum need not be held.  
  9.6      (c) In a referendum to include additional area, all land 
  9.7   occupiers eligible voters within the proposed additional area 
  9.8   may vote.  
  9.9      (d) It is not necessary to obtain the consent of the fee 
  9.10  owners within the district before the additional area is annexed 
  9.11  to a district.  
  9.12     Sec. 13.  Minnesota Statutes 2002, section 103C.211, is 
  9.13  amended to read: 
  9.14     103C.211 [CONSOLIDATION AND DIVISION OF DISTRICTS.] 
  9.15     (a) A petition to consolidate two or more districts or to 
  9.16  separate a district into two or more districts may be filed with 
  9.17  the state board by 25 or more land occupiers within the affected 
  9.18  districts.  The petition must be signed by the majority of each 
  9.19  board of the affected districts or by at least 100 resident 
  9.20  owners within the affected districts.  It is not necessary to 
  9.21  obtain the consent of fee owners in an established district 
  9.22  before districts are consolidated or an existing district is 
  9.23  divided.  Proceedings provided for petitions to organize a 
  9.24  district shall be followed as far as they are applicable.  The 
  9.25  state board shall prescribe the form for a petition, which shall 
  9.26  be as nearly as possible in the form for petitions to organize a 
  9.27  district.  
  9.28     (b) The land occupiers eligible voters within the affected 
  9.29  districts may vote in the referendum.  The state board may not 
  9.30  determine the administrative feasibility of consolidating or 
  9.31  separating districts unless a majority of the votes cast in the 
  9.32  referendum within each separate district affected, or within 
  9.33  each separate area sought to be made a separate district, is in 
  9.34  favor of the consolidation or separation.  
  9.35     (c) When districts are consolidated or separated, the 
  9.36  corporate existence and terms of office of the officers of the 
 10.1   old districts expire upon the issuance and recording by the 
 10.2   secretary of state of a certificate of organization of the new 
 10.3   districts.  Upon consolidation, the rights and liabilities of 
 10.4   the consolidating districts shall be assumed by the consolidated 
 10.5   district.  Upon separation, the rights and liabilities of the 
 10.6   original district shall be vested in and assumed by the new 
 10.7   districts in an equitable proportion determined by the state 
 10.8   board.  A separation does not affect the term of office for 
 10.9   which a supervisor was elected or appointed.  The supervisor 
 10.10  shall continue to represent the district where the supervisor 
 10.11  resides for that full term.  
 10.12     Sec. 14.  Minnesota Statutes 2002, section 103C.225, 
 10.13  subdivision 1, is amended to read: 
 10.14     Subdivision 1.  [PETITION FOR TERMINATION.] (a) After Five 
 10.15  years after the organization of a district, 25 occupiers of land 
 10.16  in the district may file a district board may, by resolution 
 10.17  adopted by a majority of the board, or resident owners may, by a 
 10.18  petition filed with the state board asking, ask that the 
 10.19  operations and existence of the district be terminated.  The 
 10.20  resident owner petition must be signed by the lesser of: 
 10.21     (1) at least one percent of the resident owners within the 
 10.22  district; or 
 10.23     (2) 500 resident owners within the district. 
 10.24     (b) The state board may not receive a petition, conduct a 
 10.25  referendum, or make a determination on a petition to discontinue 
 10.26  a district more often than once in two years.  
 10.27     Sec. 15.  Minnesota Statutes 2002, section 103C.225, 
 10.28  subdivision 3, is amended to read: 
 10.29     Subd. 3.  [REFERENDUM.] (a) Within 60 days after the 
 10.30  petition is received by the state board, it shall give due 
 10.31  notice of the holding of a referendum, supervise the referendum, 
 10.32  and issue appropriate regulations governing the conduct of the 
 10.33  referendum schedule the referendum at the next general election, 
 10.34  and cooperate with county election officials to accomplish the 
 10.35  election in the most expedient manner.  Prior to the referendum 
 10.36  the state board shall facilitate the preparation of a plan to 
 11.1   continue the administration of the powers, duties, and 
 11.2   responsibilities of the district, including the functions of the 
 11.3   district board. 
 11.4      (b) The question shall be submitted by ballots, upon which 
 11.5   the words "For terminating the existence of the 
 11.6   .................. (name of the soil and water conservation 
 11.7   district to be here inserted)" and "Against terminating the 
 11.8   existence of the .................. (name of the soil and water 
 11.9   conservation district to be here inserted)" shall be printed, 
 11.10  with a square before each proposition and a direction to insert 
 11.11  an X mark in the square before one or the other.  
 11.12     (c) Only land occupiers eligible voters in the district may 
 11.13  vote in the referendum.  
 11.14     (d) Informalities in the conduct of the referendum or 
 11.15  matters relating to the referendum do not invalidate the 
 11.16  referendum, or result of the referendum, if due notice has been 
 11.17  given and the referendum has been fairly conducted.  
 11.18     (e) The state board shall publish the result of the 
 11.19  referendum.  
 11.20     Sec. 16.  Minnesota Statutes 2002, section 103C.225, 
 11.21  subdivision 4, is amended to read: 
 11.22     Subd. 4.  [DETERMINATION BY STATE BOARD.] (a) The state 
 11.23  board shall determine whether the continued operation of the 
 11.24  district board is administratively feasible and give 
 11.25  consideration to the public policy under section 103A.206, and:  
 11.26     (1) the attitudes of the land occupiers of lands lying 
 11.27  within the district; 
 11.28     (2) the number of land occupiers eligible to vote eligible 
 11.29  voters who voted in the referendum who have voted; 
 11.30     (3) the proportion of the votes cast in the referendum in 
 11.31  favor of the discontinuance of the district to the total number 
 11.32  of votes cast; 
 11.33     (4) the approximate wealth and income of the land occupiers 
 11.34  of the district; 
 11.35     (5) the probable expense of carrying on erosion-control 
 11.36  operations and related water quality improvements within the 
 12.1   district; and 
 12.2      (6) the plan to continue the powers, duties, and 
 12.3   responsibilities of the district board; and 
 12.4      (7) other economic and social factors relevant to the 
 12.5   determination.  
 12.6      (b) If the state board determines that the continued 
 12.7   operation of the district is administratively feasible, the 
 12.8   state shall record the determination and deny the petition.  
 12.9      (c) If the state board determines that the continued 
 12.10  operation of the district is not administratively feasible, the 
 12.11  state board shall record the determination and certify the 
 12.12  determination to the district board.  The state board may not 
 12.13  determine that the continued operation of the district is not 
 12.14  administratively feasible unless only when at least a majority 
 12.15  of the votes cast in the referendum have been cast in favor of 
 12.16  opposition to continuance and a satisfactory plan to continue 
 12.17  the powers, duties, and responsibilities of the district board 
 12.18  is completed.  
 12.19     Sec. 17.  Minnesota Statutes 2002, section 103C.225, 
 12.20  subdivision 8, is amended to read: 
 12.21     Subd. 8.  [EFFECT OF DISSOLUTION.] Upon issuance of the 
 12.22  certificate of dissolution, the ordinances and regulations in 
 12.23  force in the district are of no further force.  All contracts 
 12.24  entered into, to which the district or district board were 
 12.25  parties, shall remain in force and effect for the period 
 12.26  provided in the contracts.  The state board shall be substituted 
 12.27  for the district or district board as party to the contracts and 
 12.28  succeed to the district's rights and duties.  The state board 
 12.29  may delegate the district's rights and duties to a local 
 12.30  government unit, as identified in the plan developed under 
 12.31  subdivision 3. 
 12.32     Sec. 18.  Minnesota Statutes 2002, section 103C.305, 
 12.33  subdivision 1, is amended to read: 
 12.34     Subdivision 1.  [TIME FOR ELECTION.] Except for elections 
 12.35  under section 103C.301 held after the organization of the 
 12.36  district, Elections must be held at the state general election 
 13.1   specified in section 204D.03, subdivision 2.  A primary may not 
 13.2   be held.  
 13.3      Sec. 19.  Minnesota Statutes 2002, section 103C.311, 
 13.4   subdivision 1, is amended to read: 
 13.5      Subdivision 1.  [SUPERVISORS ELECTED AT LARGE.] (a) The 
 13.6   district board, after the initial election has been held, shall, 
 13.7   with the approval of the state board, divide a district into 
 13.8   five supervisor districts for purposes of nomination for 
 13.9   election.  At each election after the division, one or more 
 13.10  supervisors shall be nominated from each supervisor district.  A 
 13.11  supervisor must be a resident of the supervisor district to be 
 13.12  elected. 
 13.13     (b) If the boundary of a soil and water conservation 
 13.14  district has been substantially changed by a division of the 
 13.15  district, the district shall be divided into five supervisor 
 13.16  districts for nomination purposes.  
 13.17     (c) This subdivision does not disqualify a supervisor 
 13.18  during the term for which the supervisor was elected or 
 13.19  nominated for election.  Supervisors nominated from the 
 13.20  supervisor districts shall be included on the ballot for 
 13.21  election from the entire area included in the soil and water 
 13.22  conservation district.  
 13.23     (d) A certified copy of the minutes or the resolution of 
 13.24  the supervisors establishing supervisor districts must be 
 13.25  promptly filed by the chair of the district board with the 
 13.26  county auditor of the counties where the district is located and 
 13.27  with the state board. 
 13.28     Sec. 20.  Minnesota Statutes 2002, section 103C.311, 
 13.29  subdivision 2, is amended to read: 
 13.30     Subd. 2.  [SUPERVISORS ELECTED BY DISTRICTS.] (a) In the 
 13.31  counties of Ramsey and Washington, The district board, with the 
 13.32  approval of the state board, may by resolution provide that 
 13.33  supervisors will be elected by supervisor districts as provided 
 13.34  in this subdivision.  
 13.35     (b) The supervisor districts must be composed of precincts 
 13.36  established by county and municipal governing bodies under 
 14.1   section 204B.14.  The districts must be compact, include only 
 14.2   contiguous territory, and be substantially equal in population.  
 14.3   The districts must be numbered in a regular series.  The 
 14.4   districts must be drawn by the county board of the county 
 14.5   containing the largest area of the soil and water conservation 
 14.6   district, in consultation with the district board and with the 
 14.7   approval of the state board.  The boundaries of the districts 
 14.8   must be redrawn after each decennial federal census as provided 
 14.9   in section 204B.135.  A certified copy of the resolution 
 14.10  establishing supervisor districts must be filed by the chair of 
 14.11  the district board with the county auditor of the counties where 
 14.12  the soil and water conservation district is located, with the 
 14.13  state board, and with the secretary of state at least 30 days 
 14.14  before the first date candidates may file for the office of 
 14.15  supervisor. 
 14.16     (c) Each supervisor district is entitled to elect one 
 14.17  supervisor.  A supervisor must be a resident of the district 
 14.18  from which elected.  
 14.19     (d) The district board shall provide staggered terms for 
 14.20  supervisors elected by district.  After each redistricting, 
 14.21  there shall be a new election of supervisors in all the 
 14.22  districts at the next general election, except that if the 
 14.23  change made in the boundaries of a district is less than five 
 14.24  percent of the average population of all the districts, the 
 14.25  supervisor in office at the time of the redistricting shall 
 14.26  serve for the full term for which elected.  The district board 
 14.27  shall determine by lot the seats to be filled for a two-year 
 14.28  term, a four-year term, and a six-year term. 
 14.29     Sec. 21.  Minnesota Statutes 2002, section 103C.315, 
 14.30  subdivision 1, is amended to read: 
 14.31     Subdivision 1.  [MEMBERS.] (a) Except as provided in 
 14.32  paragraph (c), the district board shall consist of five 
 14.33  supervisors, elected or appointed as provided in sections 
 14.34  103C.201, subdivision 8, 103C.301, and 103C.305. 
 14.35     (b) Supervisors must be legal eligible voters residing in 
 14.36  the district.  
 15.1      (c) In counties where the county board consists of seven 
 15.2   members and districts have been divided into supervisor 
 15.3   districts, under section 103C.311, subdivision 2, the county 
 15.4   board may establish seven supervisor districts, elected or 
 15.5   appointed as provided in sections 103C.201, subdivision 8; 
 15.6   103C.305; and 103C.311, subdivision 2. 
 15.7      Sec. 22.  Minnesota Statutes 2002, section 103C.315, 
 15.8   subdivision 2, is amended to read: 
 15.9      Subd. 2.  [TERMS.] The two supervisors appointed by the 
 15.10  state board upon the establishment of a district serve terms 
 15.11  ending on the first Monday in January following the next general 
 15.12  election after their appointment as provided in section 
 15.13  103C.201, subdivision 8.  Their successors shall be elected for 
 15.14  terms of four years commencing on the first Monday in January 
 15.15  and until a successor is elected or appointed and has 
 15.16  qualified.  Vacancies in the office of supervisor appointed by 
 15.17  the state board shall be filled by the state board. 
 15.18     Sec. 23.  Minnesota Statutes 2002, section 103C.315, 
 15.19  subdivision 4, is amended to read: 
 15.20     Subd. 4.  [COMPENSATION.] A supervisor shall receive 
 15.21  compensation for services as the state board may determine up to 
 15.22  $75 per day, and may be reimbursed for expenses, including 
 15.23  traveling expenses, necessarily incurred in the discharge of 
 15.24  duties.  A supervisor may be reimbursed for the use of the 
 15.25  supervisor's own automobile in the performance of official 
 15.26  duties at a rate up to the maximum tax-deductible mileage rate 
 15.27  permitted under the federal Internal Revenue Code. 
 15.28     Sec. 24.  Minnesota Statutes 2002, section 103C.315, 
 15.29  subdivision 5, is amended to read: 
 15.30     Subd. 5.  [REMOVAL OF SUPERVISOR.] A supervisor may be 
 15.31  removed by the state board upon notice and hearing, for neglect 
 15.32  of duty or from office in accordance with the procedures under 
 15.33  sections 351.14 to 351.23 for malfeasance or nonfeasance in 
 15.34  office, but for no other reason.  
 15.35     Sec. 25.  Minnesota Statutes 2002, section 103C.331, 
 15.36  subdivision 11, is amended to read: 
 16.1      Subd. 11.  [COMPREHENSIVE PLAN.] (a) A district may develop 
 16.2   and revise a comprehensive plan, specifying practices to 
 16.3   implement the state policy specified in section 103A.206, 
 16.4   including: 
 16.5      (1) the construction, maintenance, and operation of 
 16.6   structural measures; 
 16.7      (2) methods of cultivation; 
 16.8      (3) the use of vegetation; 
 16.9      (4) cropping programs; 
 16.10     (5) mechanical practices; 
 16.11     (6) changes in use of land; 
 16.12     (7) water quality improvement practices; 
 16.13     (8) other land use, soil erosion reduction, and 
 16.14  agricultural practices; and 
 16.15     (8) (9) related technical standards and specifications.  
 16.16     (b) The plan shall include a classification of the soil 
 16.17  types within the district as determined by the Minnesota 
 16.18  cooperative soil survey.  
 16.19     (c) The plan must identify the areas within the district 
 16.20  where erosion, sedimentation, and related water quality problems 
 16.21  appear most in need of control methods.  
 16.22     (d) The plan shall be consistent with the statewide 
 16.23  framework water resources plan, the statewide water quality 
 16.24  management plan, and the state board's soil and water program 
 16.25  plan.  The plan shall be prepared as required by the rules of 
 16.26  the state board. 
 16.27     (e) By August 1 of each even-numbered year, each district 
 16.28  which applies for cost-sharing funds under section 103C.501 
 16.29  shall submit to the state board an amendment of its 
 16.30  comprehensive plan that identifies high priority erosion, 
 16.31  sedimentation and water quality problems within the district as 
 16.32  required by the rules of the state board.  
 16.33     (f) By August 1 of each year, Each district that applies 
 16.34  for cost-sharing funds under section 103C.501 shall submit to 
 16.35  the state board an annual work plan for the high priority 
 16.36  erosion, sedimentation, and water quality problems in the 
 17.1   district.  The work plan shall be prepared as required by the 
 17.2   rules of the state board.  In preparing the annual work plan, 
 17.3   the district shall actively identify and seek out land occupiers 
 17.4   with high priority erosion problems who have not participated in 
 17.5   cost-sharing contracts and encourage their participation in 
 17.6   programs to control their erosion problems.  
 17.7      Sec. 26.  Minnesota Statutes 2002, section 103C.331, 
 17.8   subdivision 12, is amended to read: 
 17.9      Subd. 12.  [ASSUMPTION OF CONSERVATION PROJECTS.] (a) A 
 17.10  district may take over by purchase, lease, or otherwise, and may 
 17.11  improve, maintain, operate, and administer a soil or water 
 17.12  conservation, erosion-control, erosion-prevention, water quality 
 17.13  improvement, watershed protection, flood prevention or flood 
 17.14  control project in its boundaries undertaken by the United 
 17.15  States or by a state agency. 
 17.16     (b) A district may accept donations, gifts, grants, or 
 17.17  contributions in money, services, materials, or otherwise from 
 17.18  the United States, a state agency or other source to accomplish 
 17.19  the authorization in this section.  A board may enter into a 
 17.20  contract or agreement necessary or appropriate to accomplish the 
 17.21  transfer.  A board may use or expend money, services, materials, 
 17.22  or other things to accomplish an authorized purpose.  
 17.23     Sec. 27.  Minnesota Statutes 2002, section 103C.331, 
 17.24  subdivision 16, is amended to read: 
 17.25     Subd. 16.  [BUDGET.] The district board shall annually 
 17.26  present a budget consisting of an itemized statement of district 
 17.27  expenses for the ensuing calendar year to the boards of county 
 17.28  commissioners of the counties in which the district is located.  
 17.29  The county boards may levy an annual tax on all taxable real 
 17.30  property in the district or annually authorize district levies, 
 17.31  as provided in section 103C.332, for the amount that the boards 
 17.32  determine is necessary to meet the requirements of the 
 17.33  district.  The amount levied shall be collected and distributed 
 17.34  to the district as prescribed by chapter 276.  The amount may be 
 17.35  spent by the district board for a district purpose authorized by 
 17.36  law.  
 18.1      Sec. 28.  Minnesota Statutes 2002, section 103C.331, 
 18.2   subdivision 19, is amended to read: 
 18.3      Subd. 19.  [ADMINISTRATION OF OFFICIAL CONTROLS.] A 
 18.4   district may, under a joint powers agreement under section 
 18.5   471.59, accept delegation from the state, a county, or a city of 
 18.6   authority to administer soil and water conservation-related 
 18.7   official controls, as defined in section 103B.305, subdivision 
 18.8   7, of the county or city as specified in the agreement.  The 
 18.9   Prior to the delegation, the district and the state, county, or 
 18.10  city agreement must include provisions requiring that: 
 18.11     (1) all costs incurred by the district in administering the 
 18.12  controls will be reimbursed by the county or city provide for 
 18.13  the source of funding for administering the official controls; 
 18.14     (2) the district will provide notice and hearing in the 
 18.15  same instances that the county or city would; and 
 18.16     (3) the county or city identify who will provide legal 
 18.17  advice and support when requested by the district for 
 18.18  administration and enforcement. 
 18.19     Sec. 29.  Minnesota Statutes 2002, section 103C.331, is 
 18.20  amended by adding a subdivision to read: 
 18.21     Subd. 20.  [COORDINATION AND COOPERATION.] In implementing 
 18.22  its authorities, a district shall cooperate as far as possible 
 18.23  with federal, state, and local agencies and with private 
 18.24  organizations in order to avoid duplication and to enhance 
 18.25  implementation of public and private conservation initiatives 
 18.26  within its jurisdiction. 
 18.27     Sec. 30.  [103C.332] [DISTRICT FUNDS AND LEVIES.] 
 18.28     Subdivision 1.  [GENERAL FUND.] (a) A district shall create 
 18.29  a general fund consisting of: 
 18.30     (1) an ad valorem tax levy, authorized by a county board 
 18.31  under section 103C.331, subdivision 16, that may not exceed 
 18.32  0.048 percent of taxable market value, or $750,000, whichever is 
 18.33  less; and 
 18.34     (2) revenue received from the county for administration of 
 18.35  the district under section 103C.331, subdivision 16. 
 18.36     (b) The money in the fund shall be used for general 
 19.1   administrative expenses.  The supervisors may make an annual 
 19.2   levy for the general fund as provided in subdivision 6. 
 19.3      Subd. 2.  [IMPLEMENTATION AND PROJECT MATCH FUND.] A 
 19.4   district shall create an implementation fund to supply funds for 
 19.5   the implementation of the projects of the district or to match 
 19.6   grants from outside sources consisting of: 
 19.7      (1) ad valorem tax levies or fees levied or to be levied 
 19.8   for the implementation of projects of the district or to match 
 19.9   grants, authorized by the county board under section 103C.331, 
 19.10  subdivision 16; and 
 19.11     (2) revenue received from the county under section 
 19.12  103C.331, subdivision 16, for the implementation of projects of 
 19.13  the district or to match grants. 
 19.14     Subd. 3.  [BUDGET HEARING.] (a) Before adopting a budget 
 19.15  when levies are authorized by the county board under section 
 19.16  103C.331, subdivision 16, the supervisors shall hold a public 
 19.17  hearing on the proposed budget. 
 19.18     (b) The supervisors shall publish a notice of the hearing 
 19.19  with a summary of the proposed budget in one or more newspapers 
 19.20  of general circulation in each county consisting of part of the 
 19.21  district.  The notice and summary shall be published once each 
 19.22  week for two successive weeks before the hearing.  The last 
 19.23  publication shall be at least two days before the hearing. 
 19.24     Subd. 4.  [BUDGET ADOPTION.] On or before September 15 of 
 19.25  each year, the supervisors shall adopt a budget for the next 
 19.26  year and decide on the total amount necessary to be raised from 
 19.27  ad valorem tax levies to meet the district's budget. 
 19.28     Subd. 5.  [CERTIFICATION TO AUDITOR.] After adoption of the 
 19.29  budget and no later than September 15, the district shall 
 19.30  certify to the auditor of each county within the district, the 
 19.31  county's share of an authorized tax, which shall be an amount 
 19.32  bearing the same proportion to the total levy as the net tax 
 19.33  capacity of the area of the county within the district bears to 
 19.34  the net tax capacity of the entire district.  The maximum amount 
 19.35  of a levy may not exceed the amount provided in subdivisions 1 
 19.36  and 2. 
 20.1      Subd. 6.  [LEVY.] The auditor of each county in the 
 20.2   district shall add the amount of an authorized levy made by the 
 20.3   supervisors to the other tax levies on the property of the 
 20.4   county within the district for collection by the county 
 20.5   treasurer with other taxes.  The county treasurer shall make 
 20.6   settlement of the taxes collected with the treasurer of the 
 20.7   district in the same manner as other taxes are distributed to 
 20.8   the other political subdivisions.  The levy authorized by this 
 20.9   section is in addition to other county taxes authorized by law. 
 20.10     Sec. 31.  Minnesota Statutes 2002, section 103C.401, 
 20.11  subdivision 1, is amended to read: 
 20.12     Subdivision 1.  [POWERS AND DUTIES.] In addition to the 
 20.13  powers and duties of the state board provided by other law, the 
 20.14  state board shall:  
 20.15     (1) offer to assist the district boards to implement their 
 20.16  programs; 
 20.17     (2) keep the district boards of the state informed of the 
 20.18  activities and experience of other districts and facilitate 
 20.19  cooperation and an interchange of advice and experience among 
 20.20  the districts; 
 20.21     (3) coordinate the programs and activities of the districts 
 20.22  with appropriate agencies by advice and consultation; 
 20.23     (4) approve or disapprove the plans or programs of 
 20.24  districts relating to the use of state funds administered by the 
 20.25  state board; 
 20.26     (5) secure the cooperation and assistance of agencies in 
 20.27  the work of the districts and develop a program to advise and 
 20.28  assist appropriate agencies in obtaining state and federal funds 
 20.29  for erosion, sedimentation, flooding, and agriculturally related 
 20.30  pollution control programs; 
 20.31     (6) develop and implement a public information program 
 20.32  concerning the districts' activities and programs, the problems 
 20.33  and preventive practices relating to erosion control, 
 20.34  sedimentation, agriculturally related pollution, flood 
 20.35  prevention, and the advantages of formation of districts in 
 20.36  areas where their organization is desirable; 
 21.1      (7) divide and consolidate districts without a hearing or a 
 21.2   referendum to confine districts within county limits, without 
 21.3   allowing a district, if feasible and practicable, to contain 
 21.4   less than four full or fractional congressional townships; 
 21.5      (8) assist the statewide program to inventory and classify 
 21.6   the types of soils in the state as determined by the Minnesota 
 21.7   cooperative soil survey; 
 21.8      (9) identify research needs and cooperate with other public 
 21.9   agencies in research concerning the nature and extent of 
 21.10  erosion, sedimentation, flooding and agriculturally related 
 21.11  pollution, the amounts and sources of sediment and pollutants 
 21.12  delivered to the waters of the state, and long-term soil 
 21.13  productivity; 
 21.14     (10) develop structural, land use management practice, and 
 21.15  other programs to reduce or prevent soil erosion, sedimentation, 
 21.16  flooding, and agriculturally related pollution; 
 21.17     (11) develop a system of priorities to identify the 
 21.18  erosion, flooding, sediment, and agriculturally related 
 21.19  pollution problem areas that most need control systems; and 
 21.20     (12) ensure compliance with statewide programs and policies 
 21.21  established by the state board by advice, consultation, and 
 21.22  approval of grant agreements with the districts; and 
 21.23     (13) service requests from districts to consolidate 
 21.24  districts across county boundaries and facilitate other 
 21.25  agreed-to reorganizations of districts with other districts or 
 21.26  other local units of government, including making grants, within 
 21.27  the limits of available funds, to offset the cost of 
 21.28  consolidation or reorganization. 
 21.29     Sec. 32.  Minnesota Statutes 2002, section 103C.401, 
 21.30  subdivision 2, is amended to read: 
 21.31     Subd. 2.  [USE OF FUNDS.] (a) Funds made available to a 
 21.32  district from the state for expenditures necessary for its 
 21.33  operations may be used only for purposes authorized by the state 
 21.34  board.  
 21.35     (b) A district may designate the board of county 
 21.36  commissioners to act as the agent of the district to receive and 
 22.1   expend the funds at the direction and with the approval of the 
 22.2   district board. 
 22.3      (c) At least annually The state board shall audit, in a 
 22.4   manner it prescribes, provide closeout reports to the districts 
 22.5   regarding the expenditure of the funds.  
 22.6      Sec. 33.  Minnesota Statutes 2002, section 275.066, is 
 22.7   amended to read: 
 22.8      275.066 [SPECIAL TAXING DISTRICTS; DEFINITION.] 
 22.9      For the purposes of property taxation and property tax 
 22.10  state aids, the term "special taxing districts" includes the 
 22.11  following entities: 
 22.12     (1) watershed districts under chapter 103D; 
 22.13     (2) sanitary districts under sections 115.18 to 115.37; 
 22.14     (3) regional sanitary sewer districts under sections 115.61 
 22.15  to 115.67; 
 22.16     (4) regional public library districts under section 
 22.17  134.201; 
 22.18     (5) park districts under chapter 398; 
 22.19     (6) regional railroad authorities under chapter 398A; 
 22.20     (7) hospital districts under sections 447.31 to 447.38; 
 22.21     (8) St. Cloud metropolitan transit commission under 
 22.22  sections 458A.01 to 458A.15; 
 22.23     (9) Duluth transit authority under sections 458A.21 to 
 22.24  458A.37; 
 22.25     (10) regional development commissions under sections 
 22.26  462.381 to 462.398; 
 22.27     (11) housing and redevelopment authorities under sections 
 22.28  469.001 to 469.047; 
 22.29     (12) port authorities under sections 469.048 to 469.068; 
 22.30     (13) economic development authorities under sections 
 22.31  469.090 to 469.1081; 
 22.32     (14) metropolitan council under sections 473.123 to 
 22.33  473.549; 
 22.34     (15) metropolitan airports commission under sections 
 22.35  473.601 to 473.680; 
 22.36     (16) metropolitan mosquito control commission under 
 23.1   sections 473.701 to 473.716; 
 23.2      (17) Morrison county rural development financing authority 
 23.3   under Laws 1982, chapter 437, section 1; 
 23.4      (18) Croft Historical Park District under Laws 1984, 
 23.5   chapter 502, article 13, section 6; 
 23.6      (19) East Lake county medical clinic district under Laws 
 23.7   1989, chapter 211, sections 1 to 6; 
 23.8      (20) Floodwood area ambulance district under Laws 1993, 
 23.9   chapter 375, article 5, section 39; 
 23.10     (21) Middle Mississippi river watershed management 
 23.11  organization under sections 103B.211 and 103B.241; 
 23.12     (22) emergency medical services special taxing districts 
 23.13  under section 144F.01; 
 23.14     (23) a county levying under the authority of section 
 23.15  103B.241, 103B.245, or 103B.251; and 
 23.16     (24) soil and water conservation districts under chapter 
 23.17  103C; and 
 23.18     (25) any other political subdivision of the state of 
 23.19  Minnesota, excluding counties, school districts, cities, and 
 23.20  towns, that has the power to adopt and certify a property tax 
 23.21  levy to the county auditor, as determined by the commissioner of 
 23.22  revenue. 
 23.23     Sec. 34.  Minnesota Statutes 2002, section 351.14, 
 23.24  subdivision 5, is amended to read: 
 23.25     Subd. 5.  [ELECTED COUNTY OFFICIAL.] "Elected county 
 23.26  official" means any public official who is elected to countywide 
 23.27  office or appointed to an elective countywide office, including 
 23.28  county attorney, county sheriff, county auditor, county 
 23.29  recorder, and county treasurer, and soil and water conservation 
 23.30  supervisor.  "Elected county official" also means a county 
 23.31  commissioner elected or appointed from a commissioner 
 23.32  district or a soil and water conservation district supervisor 
 23.33  elected or appointed from a supervisor district established 
 23.34  under section 103C.311, subdivision 2. 
 23.35     Sec. 35.  [REPEALER.] 
 23.36     Minnesota Statutes 2002, section 103C.301, is repealed.