1.1 	A bill for an act
1.2 	relating to the Metropolitan Council; requiring the
1.3 	Metropolitan Council to carry out metropolitan area
1.4 	water supply planning activities; establishing an
1.5 	advisory committee to assist the council in carrying
1.6 	out the planning activities; abolishing the housing
1.7 	bond credit enhancement program; providing for
1.8 	continued debt reserve and levy authority for bonds
1.9 	issued under the program before its abolishment;
1.10 	providing for the use of available funds from the
1.11 	abolished housing bond credit enhancement program for
1.12 	the council's metropolitan area water supply planning
1.13 	activities; amending Minnesota Statutes 2004, section
1.14 	473.197, subdivision 4; proposing coding for new law
1.15 	in Minnesota Statutes, chapter 473; repealing
1.16 	Minnesota Statutes 2004, sections 473.156; 473.197,
1.17 	subdivisions 1, 2, 3, 5.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	Section 1. [473.1565] METROPOLITAN AREA WATER SUPPLY
1.20 	PLANNING ACTIVITIES; ADVISORY COMMITTEE.
1.21 		Subdivision 1.Planning activities. (a) The Metropolitan
1.22 	Council must carry out planning activities addressing the water
1.23 	supply needs of the metropolitan area as defined in section
1.24 	473.121, subdivision 2.  The planning activities must include,
1.25 	at a minimum:
1.26 	(1) development and maintenance of a base of technical
1.27 	information needed for sound water supply decisions including
1.28 	surface and groundwater availability analyses, water demand
1.29 	projections, water withdrawal and use impact analyses, modeling,
1.30 	and similar studies;
1.31 	(2) development and periodic update of a metropolitan area
2.1 	master water supply plan that:
2.2 	(i) provides guidance for local water supply systems and
2.3 	future regional investments;
2.4 	(ii) emphasizes conservation, interjurisdictional
2.5 	cooperation, and long-term sustainability; and 
2.6 	(iii) addresses the reliability, security, and
2.7 	cost-effectiveness of the metropolitan area water supply system
2.8 	and its local and subregional components;
2.9 	(3) recommendations for clarifying the appropriate roles
2.10 	and responsibilities of local, regional, and state government in
2.11 	metropolitan area water supply;
2.12 	(4) recommendations for streamlining and consolidating
2.13 	metropolitan area water supply decision-making and approval
2.14 	processes; and 
2.15 	(5) recommendations for the ongoing and long-term funding
2.16 	of metropolitan area water supply planning activities and
2.17 	capital investments.
2.18 	(b) The council must carry out the planning activities in
2.19 	this subdivision in consultation with the metropolitan area
2.20 	water supply advisory committee established in subdivision 2.
2.21 		Subd. 2.Advisory committee. (a) A metropolitan area
2.22 	water supply advisory committee is established to assist the
2.23 	council in its planning activities in subdivision 1.  The
2.24 	advisory committee has the following membership:
2.25 	(1) the commissioner of agriculture or the commissioner's
2.26 	designee;
2.27 	(2) the commissioner of health or the commissioner's
2.28 	designee;
2.29 	(3) the commissioner of natural resources or the
2.30 	commissioner's designee;
2.31 	(4) the commissioner of the pollution control agency or the
2.32 	commissioner's designee;
2.33 	(5) two officials of counties that are located in the
2.34 	metropolitan area, appointed by the governor;
2.35 	(6) five officials of noncounty local governmental units
2.36 	that are located in the metropolitan area, appointed by the
3.1 	governor; and 
3.2 	(7) the chair of the Metropolitan Council or the chair's
3.3 	designee, who is chair of the advisory committee.
3.4 	A local government unit in each of the seven counties in
3.5 	the metropolitan area must be represented in the seven
3.6 	appointments made under clauses (5) and (6).
3.7 	(b) Members of the advisory committee appointed by the
3.8 	governor serve at the pleasure of the governor.  Members of the
3.9 	advisory committee serve without compensation but may be
3.10 	reimbursed for their reasonable expenses as determined by the
3.11 	Metropolitan Council.  The advisory committee expires December
3.12 	31, 2007.
3.13 	(c) The council must consider the work and recommendations
3.14 	of the advisory committee when the council is preparing its
3.15 	regional development framework.
3.16 		Subd. 3.Reports to legislature. The council must submit
3.17 	reports to the legislature regarding its findings,
3.18 	recommendations, and continuing planning activities under
3.19 	subdivision 1.  The first report must be submitted to the
3.20 	legislature by the date the legislature convenes in 2007 and
3.21 	subsequent reports must be submitted by such date every five
3.22 	years thereafter.

3.23 	Sec. 2. Minnesota Statutes 2004, section 473.197,
3.24 	subdivision 4, is amended to read:
3.25 		Subd. 4.Debt reserve; levy.  To provide money to pay
3.26 	debt service on bonds issued under the credit enhancement
3.27 	program if pledged revenues are insufficient to pay debt service 
3.28 	in repealed subdivision 1 of Minnesota Statutes 2004, section
3.29 	473.197, the council must maintain a debt reserve fund in the
3.30 	manner and with the effect provided by section 118A.04 for
3.31 	public funds until such a reserve is no longer pledged or
3.32 	otherwise needed to pay debt service on such bonds. To provide
3.33 	funds for the debt reserve fund, the council may use up to
3.34 	$3,000,000 of the proceeds of solid waste bonds issued by the
3.35 	council under section 473.831 before its repeal.  To provide
3.36 	additional funds for the debt reserve fund, the council may levy
4.1 	a tax on all taxable property in the metropolitan area and must
4.2 	levy the tax If sums in the debt reserve fund are insufficient
4.3 	to cure any deficiency in the debt service fund established for
4.4 	the bonds, the council must levy a tax on all taxable property
4.5 	in the metropolitan area in the amount needed to cure the
4.6 	deficiency.  The tax authorized by this section does not affect
4.7 	the amount or rate of taxes that may be levied by the council
4.8 	for other purposes and is not subject to limit as to rate or
4.9 	amount.

4.10 	Sec. 3. CONTINUATION OF AGREEMENTS.
 4.11 	An agreement entered into between the Metropolitan Council
4.12 	and a participant in the credit enhancement program under
4.13 	Minnesota Statutes 2004, section 473.197, subdivision 5, with
4.14 	respect to bonds issued prior to the effective date of this act,
4.15 	shall continue in effect in accordance with its terms; provided
4.16 	that no provision in such agreement shall be construed to
4.17 	require or allow the council to pledge its full faith and credit
4.18 	and taxing powers to the payment of additional bonds issued
4.19 	after the effective date of this act.

4.20 	Sec. 4. USE OF CREDIT ENHANCEMENT PROGRAM FUNDS.
 4.21 	The Metropolitan Council must transfer any funds
4.22 	originating from the proceeds of solid waste bonds and available
4.23 	for the credit enhancement program under Minnesota Statutes
4.24 	2004, section 473.197, subdivision 4, to the council's general
4.25 	fund to the extent such funds are no longer pledged or otherwise
4.26 	needed by the council to maintain a debt reserve fund as
4.27 	provided for in ongoing Minnesota Statutes, section 473.197,
4.28 	subdivision 4.  The council must first use the transferred funds
4.29 	for carrying out the metropolitan area water supply planning
4.30 	activities required by section 1, for staff support of the
4.31 	advisory committee established under that section, and for
4.32 	related purposes.  If the council determines that the
4.33 	transferred funds are no longer needed for such purposes, the
4.34 	council may use any such funds for any general purposes of the
4.35 	council.

4.36 	Sec. 5. REPEALER.
 5.1 	Minnesota Statutes 2004, sections 473.156 and 473.197,
5.2 	subdivisions 1, 2, 3, and 5, are repealed.

5.3 	Sec. 6. APPLICATION.
 5.4 	This act applies in the counties of Anoka, Carver, Dakota,
5.5 	Hennepin, Ramsey, Scott, and Washington.

5.6 	Sec. 7. EFFECTIVE DATE.
 5.7 	This act is effective the day following final enactment.