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                         Laws of Minnesota 1985 

                          CHAPTER 2-H.F.No. 9 
           An act relating to water; providing for comprehensive 
          local water management; authorizing counties to 
          develop and implement county water and related land 
          resources plans; providing additional authorities to 
          counties; providing additional duties of the water 
          resources board; proposing coding for new law as 
          Minnesota Statutes, chapter 110B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [110B.01] [TITLE.] 
    Sections 1 to 12 may be cited as the "comprehensive local 
water management act."  
    Sec. 2.  [110B.02] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 1 to 12. 
    Subd. 2.  [BOARD.] "Board" means the water resources board. 
    Subd. 3.  [COMPREHENSIVE WATER PLAN.] "Comprehensive water 
plan" means the plan adopted by a county under sections 3 and 4. 
    Subd. 4.  [GROUNDWATER SYSTEMS.] "Groundwater systems" 
means the 14 principal aquifers of the state as defined by the 
United States Geological Survey in the Water-Resources 
Investigations 81-51, entitled "Designation of Principal Water 
Supply Aquifers in Minnesota" (August 1981), and its revisions. 
    Subd. 5.  [LOCAL UNITS OF GOVERNMENT.] "Local units of 
government" means municipalities, towns, counties, soil and 
water conservation districts, watershed districts, organizations 
formed for the joint exercise of powers under section 471.59, 
and other special purpose districts or authorities exercising 
authority in water and related land resources management at the 
local level. 
    Subd. 6.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city. 
    Subd. 7.  [OFFICIAL CONTROLS.] "Official controls" means 
ordinances and regulations that control the physical development 
of the whole or part of a local government unit or that 
implement the general objectives of the local government unit. 
    Subd. 8.  [RELATED LAND RESOURCES.] "Related land resources"
means land affected by present or projected management practices 
that have significant effects on the quantity and quality, or 
use of groundwater or surface water. 
     Subd. 9.  [WATERSHED MANAGEMENT ORGANIZATION.] "Watershed 
management organization" has the meaning given in section 
473.876, subdivision 9.  
    Subd. 10.  [WATERSHED UNITS.] "Watershed units" means each 
of the 81 major watershed units identified in the state 
watershed boundaries map prepared pursuant to the requirements 
of Laws 1977, chapter 455, section 33, subdivision 7, paragraph 
(a) and the accompanying data base, and the revisions of that 
data base. 
    Sec. 3.  [110B.04] [COUNTY WATER PLANNING AND MANAGEMENT.] 
    Subdivision 1.  [COUNTY DUTIES.] Each county is encouraged 
to develop and implement a comprehensive water plan.  Each 
county that develops and implements a plan has the duty and 
authority to: 
    (1) prepare and adopt a comprehensive water plan that meets 
the requirements of this section and section 4; 
    (2) review water and related land resources plans and 
official controls submitted by local units of government to 
assure consistency with the comprehensive water plan; and 
    (3) exercise any and all powers necessary to assure 
implementation of comprehensive water plans. 
    Subd. 2.  [DELEGATION.] The county is responsible for 
preparing, adopting, and assuring implementation of the 
comprehensive water plan, but may delegate all or part of the 
preparation of the plan to a local unit of government, a 
regional development commission, or a resource conservation and 
development committee.  The county may not delegate authority 
for the exercise of eminent domain, taxation, or assessment to a 
local unit of government that does not possess those powers. 
    Subd. 3.  [COORDINATION.] (a) To assure the coordination of 
efforts of all local units of government within a county during 
the preparation and implementation of a comprehensive water 
plan, each county intending to adopt a plan shall conduct 
meetings with other local units of government and may execute 
agreements with other local units of government establishing the 
responsibilities of each unit during the preparation and 
implementation of the comprehensive water plan. 
    (b) Each county intending to adopt a plan shall coordinate 
its planning program with contiguous counties.  Before meeting 
with local units of government, a county board shall notify the 
county boards of each county contiguous to it that the county is 
about to begin preparing its comprehensive water plan and is 
encouraged to request and hold a joint meeting with the 
contiguous county boards to consider the planning process. 
    Subd. 4.  [WATER PLAN REQUIREMENTS.] (a) A comprehensive 
water plan must: 
    (1) cover the entire area within a county; 
    (2) address water problems in the context of watershed 
units and groundwater systems; 
    (3) be based upon principles of sound hydrologic management 
of water, effective environmental protection, and efficient 
management; 
    (4) be consistent with comprehensive water plans prepared 
by counties and watershed management organizations wholly or 
partially within a single watershed unit or groundwater system; 
and 
    (5) apply to every year through the year 1995 or any later 
year that is evenly divisible by five, and be updated before the 
period covered expires.  
    (b) Existing water and related land resources plans, 
including plans related to agricultural land preservation 
programs developed pursuant to chapter 40A, must be fully 
utilized in preparing the comprehensive water plan.  Duplication 
of the existing plans is not required. 
    Subd. 5.  [WATERSHED DISTRICT AND INTERCOUNTY JOINT POWERS 
BOARD PLANS AND RULES.] A county must incorporate into its 
comprehensive water plan any existing plans and rules adopted by 
a watershed district or intercounty joint powers board having 
jurisdiction wholly or partly within the county.  A county may 
change the plans and rules it incorporates if the county 
demonstrates in its comprehensive water plan why the changes are 
necessary and if the changes are agreed to by each county that 
is:  (1) responsible for the appointment of a manager serving on 
the watershed board, or (2) represented on the joint powers 
board. 
    Subd. 6.  [SCOPE OF PLANS.] Comprehensive water plans must 
include: 
    (1) a description of the existing and expected changes to 
physical environment, land use, and development in the county;  
    (2) available information about the surface water, 
groundwater, and related land resources in the county, including 
existing and potential distribution, availability, quality, and 
use; 
    (3) objectives for future development, use, and 
conservation of water and related land resources, including 
objectives that concern water quality and quantity and related 
land use conditions, and a description of actions that will be 
taken in affected watersheds or groundwater systems to achieve 
the objectives; 
    (4) a description of potential changes in state programs, 
policies, and requirements considered important by the county to 
management of water resources in the county; 
    (5) a description of conflicts between the comprehensive 
water plan and existing plans of other local units of government;
    (6) a description of possible conflicts between the 
comprehensive water plan and existing or proposed comprehensive 
water plans of other counties in the affected watershed units or 
groundwater systems; 
    (7) a program for implementation of the plan that is 
consistent with the plan's management objectives and includes 
schedules for amending official controls and water and related 
land resources plans of local units of government to conform 
with the comprehensive water plan, and the schedule, components, 
and expected state and local costs of any projects to implement 
the comprehensive water plan that may be proposed, although this 
does not mean that projects are required by this section; and 
    (8) a procedure for amending the comprehensive water plan. 
    Subd. 7.  [DATA ACQUISITION.] The data collected under this 
section that has common value as determined by the state 
planning agency for natural resources planning must be provided 
and integrated into the Minnesota land management information 
systems geographic and summary data bases according to published 
data compatibility guidelines. 
    Sec. 4.  [110B.08] [COMPREHENSIVE WATER PLAN REVIEW AND 
ADOPTION.] 
    Subdivision 1.  [LOCAL REVIEW.] When the comprehensive 
water plan is completed, but before its final adoption by the 
county board, the county board shall submit the comprehensive 
water plan for review and comment to:  
    (1) all local units of government wholly or partly within 
the county; 
    (2) the applicable regional development commission, if any; 
    (3) each contiguous county and watershed management 
organization; and 
    (4) other counties or watershed management organizations 
within the same watershed unit and groundwater system that may 
be affected by proposals in the comprehensive water plan.  
    Subd. 2.  [COMMENTS TO COUNTY BOARD.] (a) A local unit of 
government must review the comprehensive water plan and existing 
water and related land resources plans or official controls and 
in its comments describe in a general way possible amendments to 
its existing plans or official controls, and an estimate of the 
fiscal or policy effects that would be associated with those 
amendments, to bring them into conformance with the 
comprehensive water plan.  
    (b) A county or watershed management organization within 
the same watershed unit or groundwater system must review 
comprehensive water plans received and describe in its comments 
possible conflicts with its existing or proposed comprehensive 
water plan and suggest measures to resolve the conflicts. 
    (c) The regional development commission shall review the 
plan under section 462.391, subdivision 1. 
    Subd. 3.  [LOCAL REVIEW PERIOD.] Comments under subdivision 
2 must be submitted to the county board within 60 days after 
receiving a comprehensive water plan for comment, unless the 
county board of the county that prepared the plan determines 
that good cause exists for an extension of this period and 
grants an extension. 
    Subd. 4.  [PUBLIC HEARING.] The county board shall conduct 
a public hearing on the comprehensive water plan pursuant to 
section 375.51 after the 60-day period for local review and 
comment is completed, but before submitting it to the state for 
review. 
    Subd. 5.  [STATE REVIEW.] (a) After conducting the public 
hearing but before final adoption, the county board must submit 
its comprehensive water plan, all written comments received on 
the plan, a record of the public hearing under subdivision 4, 
and a summary of changes incorporated as a result of the review 
process to the board for review.  The board shall complete the 
review within 90 days after receiving a comprehensive water plan 
and supporting documents.  The board shall consult with the 
departments of agriculture, health, and natural resources; the 
pollution control agency; the state planning agency; the 
environmental quality board; and other appropriate state 
agencies during the review. 
    (b) The board may disapprove a comprehensive water plan if 
the board determines the plan is not consistent with state law. 
If a plan is disapproved, the board shall provide a written 
statement of its reasons for disapproval.  A disapproved 
comprehensive water plan must be revised by the county board and 
resubmitted for approval by the board within 120 days after 
receiving notice of disapproval of the comprehensive water plan, 
unless the board extends the period for good cause.  The 
decision of the board to disapprove the plan may be appealed by 
the county to district court. 
    Subd. 6.  [ADOPTION AND IMPLEMENTATION.] A county board 
shall adopt and begin implementation of its comprehensive water 
plan within 120 days after receiving notice of approval of the 
plan from the board. 
    Subd. 7.  [AMENDMENTS.] Amendments to a comprehensive water 
plan must be submitted to local units of government and to the 
board in the same manner as a comprehensive water plan. 
    Sec. 5.  [110B.10] [DUTIES OF THE BOARD.] 
    Subdivision 1.  [GENERAL.] The board shall:  
    (1) develop guidelines for the contents of comprehensive 
water plans that provide for a flexible approach to meeting the 
different water and related land resources needs of counties and 
watersheds across the state; 
    (2) coordinate assistance of state agencies to counties and 
other local units of government involved in preparation of 
comprehensive water plans, including identification of pertinent 
data and studies available from the state and federal government;
    (3) conduct an active program of information and education 
concerning the requirements and purposes of sections 1 to 12 in 
conjunction with the association of Minnesota counties; 
    (4) determine contested cases under section 10; 
    (5) establish a process for review of comprehensive water 
plans that assures the plans are consistent with state law; and 
    (6) report to the legislative commission on Minnesota 
resources as required by section 11. 
    Subd. 2.  [RULEMAKING.] The board shall adopt rules to 
implement sections 1 to 12. 
    Subd. 3.  [LOCAL ADVISORY COMMITTEE.] The board shall use a 
committee, consisting of persons representing counties, soil and 
water conservation districts, municipalities, and townships and 
persons interested in water planning, to assist the board in the 
water planning process.  Members must be appointed, serve, and 
be paid their expenses but may not receive other compensation, 
pursuant to section 15.014. 
    Sec. 6.  [110B.12] [CONSISTENCY OF LOCAL PLANS AND CONTROLS 
WITH THE COMPREHENSIVE WATER PLAN.] 
    Subdivision 1.  [REQUIREMENT.] Local units of government 
shall amend existing water and related land resources plans and 
official controls as necessary to conform them to the 
applicable, approved comprehensive water plan following the 
procedures in this section. 
    Subd. 2.  [PROCEDURE.] Within 90 days after local units of 
government are notified by the county board of the adoption of a 
comprehensive water plan or of adoption of an amendment to a 
comprehensive water plan, the local units of government 
exercising water and related land resources planning and 
regulatory responsibility for areas within the county must 
submit existing water and related land resources plans and 
official controls to the county board for review.  The county 
board shall identify any inconsistency between the plans and 
controls and the comprehensive water plan and shall recommend 
the amendments necessary to bring local plans and official 
controls into conformance with the comprehensive water plan. 
    Subd. 3.  [REVISION AND IMPLEMENTATION.] Local units of 
government shall revise existing plans and official controls to 
conform them to the recommendations of the county board and 
shall initiate implementation of the revised plans and controls 
within 180 days after receiving the recommendations of the 
county board, or 180 days after resolution of an appeal, 
whichever is later. 
    Subd. 4.  [APPEALS.] A local unit of government may, within 
60 days after receiving the recommendations of the county board, 
appeal any recommendation to the water resources board for a 
hearing as provided in section 10. 
    Subd. 5.  [NEW PLANS AND CONTROLS.] New or amended water 
and related land resources plans and official controls proposed 
by local units of government for their adoption following 
adoption of the comprehensive water plan shall be submitted to 
the county board for review and recommendation as provided under 
this section.  
    Sec. 7.  [110B.15] [AUTHORITY UNDER APPROVED COMPREHENSIVE 
WATER PLANS.] 
    Subdivision 1.  [AUTHORITY.] When an approved comprehensive 
water plan is adopted the county has the authority specified in 
this section.  
    Subd. 2.  [REGULATION OF WATER AND LAND RESOURCES.] The 
county may regulate the use and development of water and related 
land resources within incorporated areas when one or more of the 
following conditions exists: 
    (1) the municipality does not have a local water and 
related land resources plan or official controls consistent with 
the comprehensive water plan; 
    (2) a municipal action granting a variance or conditional 
use would result in an action inconsistent with the 
comprehensive water plan; 
    (3) the municipality has authorized the county to require 
permits for the use and development of water and related land 
resources; or 
    (4) a state agency has delegated the administration of a 
state permit program to the county. 
    Subd. 3.  [ACQUISITION OF PROPERTY; ASSESSMENT OF COSTS.] A 
county may: 
    (1) acquire in the name of the county, by condemnation 
under chapter 117, real and personal property found by the 
county board to be necessary for the implementation of an 
approved comprehensive water plan; 
    (2) assess the costs of projects necessary to implement the 
comprehensive water plan undertaken under sections 1 to 12 upon 
the property benefited within the county in the manner provided 
for municipalities by chapter 429.  
    (3) charge users for services provided by the county 
necessary to implement the comprehensive water plan; and 
    (4) establish one or more special taxing districts within 
the county and issue bonds for the purpose of financing capital 
improvements under sections 1 to 12. 
    Subd. 4.  [SPECIAL TAXING DISTRICT.] (a) A tax district 
authorized under subdivision 3, clause (4), must be established 
by resolution adopted by the county board after a hearing.  
Notice of the time, place, and purpose of the hearing must be 
published for two successive weeks in the official newspaper of 
the county, ending at least seven days before the day of the 
hearing.  The resolution must describe with particularity the 
territory or area to be included in the tax district.  After 
adoption, the resolution must be filed with the county auditor 
and county recorder.  The district may be dissolved by following 
the procedures prescribed for the establishment of the district. 
    (b) After adoption of the resolution under paragraph (a), a 
county may annually levy a tax on all taxable property in the 
district for the purposes for which the tax district was 
established.  The proceeds of the tax must be paid into a fund 
reserved for these purposes.  Any proceeds remaining in the 
reserve fund at the time the tax is terminated or the district 
is dissolved must be transferred and irrevocably pledged to the 
debt service fund of the county to be used only to reduce tax 
levies for bonded indebtedness of taxable property in the 
district.  A tax levied in accordance with this subdivision for 
paying capital costs is a levy for the payment of principal and 
interest on bonded indebtedness within the meaning of section 
275.50, subdivision 5, clause (e).  
    (c) After adoption of the resolution under paragraph (a), 
and after a contract for the construction of all or part of an 
improvement has been entered into or the work has been ordered 
to be done by hired labor, the county may issue obligations in 
the amount determined by the county board to be necessary to pay 
in whole or in part the capital cost incurred and estimated to 
be incurred in making the improvement.  The obligations are 
payable out of the proceeds of the tax levied under this 
subdivision.  The county board may, by resolution adopted prior 
to the sale of obligations, pledge the full faith, credit, and 
taxing power of the county to assure payment of the principal 
and interest in the event the proceeds of the tax levy in the 
district are insufficient to pay principal and interest.  The 
amount of any taxes that are required to be levied outside of 
the territory of the tax district or taken from the general 
funds of the county to pay principal and interest on the 
obligations must be reimbursed to the county from taxes levied 
within the territory of the tax district.  Obligations must be 
issued in accordance with chapter 475, except that an election 
is not required and the amount of any obligations must not be 
included in determining the net indebtedness of the county under 
the provisions of any law or charter limiting indebtedness. 
    Sec. 8.  [110B.20] [EXEMPTION FROM LEVY LIMIT.] 
    The governing body of any county, municipality, or township 
may levy a tax in an amount required to implement sections 1 to 
12.  A levy to pay the cost of implementing sections 1 to 12 or 
to pay the cost of projects or programs identified in an adopted 
comprehensive water plan is in addition to other taxes 
authorized by law.  The amount of the levy up to .75 mill times 
the adjusted assessed valuation of the county, municipality, or 
town is exempt from any limitation on taxes imposed by chapter 
275. 
    Sec. 9.  [110B.22] [PUBLIC DRAINAGE.] 
    Projects necessary to implement the comprehensive water 
plan that are intended for the purpose of improving drainage 
must be established, repaired, and improved under Laws 1985, 
chapter 172, sections 1 to 92 and not sections 1 to 12. 
    Sec. 10.  [110B.25] [RESOLUTION OF DISPUTES.] 
    Subdivision 1.  [INFORMAL RESOLUTION.] The county or other 
local unit of government may request a meeting with the chair of 
the water resources board to informally resolve a dispute before 
initiating a contested case procedure under this section.  
    Subd. 2.  [PETITION FOR HEARING.] A county or other local 
unit of government may petition for a contested case hearing by 
the board under this section if: 
    (1) the interpretation and implementation of a 
comprehensive water plan is challenged by a local unit of 
government aggrieved by the plan; 
    (2) two or more counties disagree about the apportionment 
of the costs of a project implementing a comprehensive water 
plan; or 
    (3) a county and another local unit of government disagree 
about a change in a local water and related land resources plan 
or official control recommended by the county under section 6.  
    Subd. 3.  [TIME FOR PETITION.] The county or other local 
unit of government must file the petition by 60 days after: 
    (1) the date of the adoption or approval of the disputed 
ordinance or other decision required to be made to implement the 
comprehensive water plan; or 
    (2) the date a local unit of government receives a 
recommendation of the county board under section 6.  
    Subd. 4.  [HEARING.] If the aggrieved county or other local 
unit of government files a petition for a hearing, a hearing 
must be conducted by the state office of administrative hearings 
under the contested case procedure of chapter 14 within 60 days 
of the request.  The subject of the hearing may not extend to 
questions concerning the need for a comprehensive water plan.  
In the report of the administrative law judge, the fees of the 
office of administrative hearings and transcript fees must be 
equally apportioned among the parties to the proceeding.  Within 
60 days after receiving the report of the administrative law 
judge, the board shall, by resolution containing findings of 
fact and conclusions of law, make a final decision with respect 
to the issue before it.  
    Subd. 5.  [APPEAL.] Any local unit of government or state 
agency aggrieved by the final decision of the board may appeal 
the decision to the court of appeals in the manner provided by 
sections 14.63 to 14.69. 
    Sec. 11.  [110B.28] [COMMISSION OVERSIGHT; REPORT 
REQUIRED.] 
    The board shall, on or before January 15 of each year, 
submit to the legislative commission on Minnesota resources a 
written report on the board's functions and the implementation 
of the comprehensive local water management act since the 
previous report under this section was submitted.  The report to 
the commission must include the board's recommendations for 
changes to the comprehensive local water management act and any 
recommendations for funding.  The board shall also report to the 
commission at other times requested by the commission.  The 
commission may make recommendations to the legislature 
concerning the funding, implementation, and amendment of the act.
    Sec. 12.  [110B.30] [APPLICATION.] 
    Sections 1 to 11 do not apply in areas subject to the 
requirements of section 473.878, subdivision 1, and in areas 
covered by an agreement entered into by December 31, 1985, under 
section 473.878, subdivision 1a, except as otherwise provided in 
section 3, subdivision 4, clause (4); section 4, subdivision 1, 
clauses (3) and (4); and section 4, subdivision 2, clause (b). 
    Approved June 24, 1985

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