1.1 	A bill for an act
1.2 	relating to natural resources; authorizing establishment of basin boards; 
1.3 	authorizing taxing authority; appropriating money; requiring rulemaking;
1.4 	amending Minnesota Statutes 2010, sections 103B.101, subdivision 9; 103B.102, 
1.5 	subdivision 2; 103B.231, subdivision 4; 103B.245, subdivision 1; 103B.3369, 
1.6 	subdivisions 2, 5; 103D.205, subdivision 3; 103D.401, subdivision 1; 275.066; 
1.7 	proposing coding for new law in Minnesota Statutes, chapter 103B.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2010, section 103B.101, subdivision 9, is amended to 
1.10 	read:
1.11 		Subd. 9.Powers and duties. In addition to the powers and duties prescribed 
1.12 	elsewhere, the board shall:
1.13 	(1) coordinate the water and soil resources planning activities of counties, soil and 
1.14 	water conservation districts, watershed districts, watershed management organizations, 
1.15 	and any other local units of government through its various authorities for approval of 
1.16 	local plans, administration of state grants, and by other means as may be appropriate;
1.17 	(2) facilitate communication and coordination among state agencies in cooperation 
1.18 	with the Environmental Quality Board, and between state and local units of government, 
1.19 	in order to make the expertise and resources of state agencies involved in water and soil 
1.20 	resources management available to the local units of government to the greatest extent 
1.21 	possible;
1.22 	(3) coordinate state and local interests with respect to the study in southwestern 
1.23 	Minnesota under United States Code, title 16, section 1009;
2.1 	(4) develop information and education programs designed to increase awareness 
2.2 	of local water and soil resources problems and awareness of opportunities for local 
2.3 	government involvement in preventing or solving them;
2.4 	(5) provide a forum for the discussion of local issues and opportunities relating 
2.5 	to water and soil resources management;
2.6 	(6) adopt an annual budget and work program that integrate the various functions 
2.7 	and responsibilities assigned to it by law; and
2.8 	(7) report to the governor and the legislature by October 15 of each even-numbered 
2.9 	year with an assessment of board programs and recommendations for any program 
2.10 	changes and board membership changes necessary to improve state and local efforts in 
2.11 	water and soil resources management.; and
2.12 	(8) report to the legislature by January 15 of each even-numbered year on the 
2.13 	progress being made to further the basin watershed management policy established under 
2.14 	section 103A.212.
2.15 	The board may accept grants, gifts, donations, or contributions in money, services, 
2.16 	materials, or otherwise from the United States, a state agency, or other source to achieve 
2.17 	an authorized purpose. The board may enter into a contract or agreement necessary or 
2.18 	appropriate to accomplish the transfer. The board may receive and expend money to 
2.19 	acquire conservation easements, as defined in chapter 84C, on behalf of the state and 
2.20 	federal government consistent with the Camp Ripley's Army Compatible Use Buffer 
2.21 	Project.
2.22 	Any money received is hereby deposited in an account in a fund other than the 
2.23 	general fund and appropriated and dedicated for the purpose for which it is granted.

2.24 	Sec. 2. Minnesota Statutes 2010, section 103B.102, subdivision 2, is amended to read:
2.25 		Subd. 2.Definitions. For the purposes of this section, "local water management 
2.26 	entities" means basin boards, watershed districts, soil and water conservation districts, 
2.27 	metropolitan water management organizations, and counties operating separately or 
2.28 	jointly in their role as local water management authorities under chapter 103B, 103C, 
2.29 	103D, or 103G and chapter 114D.

2.30 	Sec. 3. [103B.176] DEFINITIONS.
2.31 	(a) For the purposes of sections 103B.176 to 103B.18, the following terms have 
2.32 	the meanings given.
2.33 	(b) "Basin board" means a basin board established under section 103B.178 or 
2.34 	103B.179.
3.1 	(c) "Local water management organizations" means watershed districts, soil 
3.2 	and water conservation districts, metropolitan water management organizations, lake 
3.3 	improvement districts, lake conservation districts, and counties under chapters 103B, 
3.4 	103C, 103D, and 114D.
3.5 	(d) "Watershed management entity" means: (1) a watershed district under chapter 
3.6 	103D; (2) a watershed management organization under section 103B.211; or (3) a formally 
3.7 	organized joint powers organization of counties, cities, soil and water conservation 
3.8 	districts, and watershed districts located outside the seven-county metropolitan area as 
3.9 	defined under section 473.121, subdivision 2, encompassing one or more of the state's 
3.10 	major watersheds as determined by the Board of Water and Soil Resources. A lake 
3.11 	improvement district is not a watershed management entity.

3.12 	Sec. 4. [103B.177] BASIN WATERSHED MANAGEMENT.
3.13 		Subdivision 1.Basin management purposes. The purposes of the basin watershed 
3.14 	management approach are to:
3.15 	(1) protect, preserve, and use natural surface water and groundwater storage and 
3.16 	retention systems;
3.17 	(2) maximize benefits of public capital expenditures needed to correct flooding and 
3.18 	water quality problems;
3.19 	(3) identify and plan for means to effectively protect and improve surface water 
3.20 	and groundwater quality;
3.21 	(4) establish more uniform policies, goals, and objectives for surface water and 
3.22 	groundwater management;
3.23 	(5) prevent erosion of soil and associated pollutants into surface water systems;
3.24 	(6) promote groundwater recharge;
3.25 	(7) protect and enhance fish and wildlife habitat;
3.26 	(8) secure other benefits associated with the sustainable use and management of 
3.27 	surface water and groundwater resources;
3.28 	(9) promote coordination and cooperation among local water management 
3.29 	organizations;
3.30 	(10) work with other public agencies and citizen volunteers collecting scientific data 
3.31 	used to identify and restore impaired waters; and
3.32 	(11) facilitate resolution of water resources conflicts.
3.33 		Subd. 2.Basin boards. (a) Basin boards may be established in each of the state's 
3.34 	major river basins. Basin boards shall be established by petition under section 103B.178 
3.35 	in the following major river basins:
4.1 	(1) Rainy River Basin;
4.2 	(2) Great Lakes Basin;
4.3 	(3) St. Croix River Basin;
4.4 	(4) Middle Mississippi River Basin;
4.5 	(5) Lower Mississippi-Cedar Rivers Basin;
4.6 	(6) Missouri-Des Moines Rivers Basin;
4.7 	(7) Upper Mississippi River Basin; and
4.8 	(8) Minnesota River Basin.
4.9 	(b) The basin board for the Red River of the North Basin shall be the Red River 
4.10 	Watershed Management Board established under Laws 1976, chapter 162. The Red River 
4.11 	Watershed Management Board may reorganize and establish itself under the petition for 
4.12 	amendment process under section 103B.179. Until the Red River Watershed Management 
4.13 	Board is established under section 103B.179, the board shall continue to operate under 
4.14 	Laws 1976, chapter 162.
4.15 		Subd. 3.Membership; organization. (a) Membership of the basin boards under 
4.16 	subdivision 2, paragraph (a), consists of one member from each of the existing watershed 
4.17 	management entities within the basin and one member from each of the major watershed 
4.18 	units where there is no watershed management entity. The governing body for each 
4.19 	watershed management entity shall appoint one member. If no watershed management 
4.20 	entity exists, the counties and soil and water conservation districts located wholly or 
4.21 	partially within, or any watershed district located partially within, each major watershed 
4.22 	unit shall jointly appoint one member that resides in the major watershed unit. A member 
4.23 	of a basin board must be a county commissioner, a soil and water conservation district 
4.24 	supervisor, a watershed district manager, or an elected city official.
4.25 	(b) Each basin board established by petition under section 103B.178 shall annually 
4.26 	elect from among its members a chair, vice-chair, and secretary-treasurer who shall serve 
4.27 	for concurrent three-year terms. The chair shall preside over all meetings of the basin 
4.28 	board and may call special meetings at reasonable times and with adequate notice, when 
4.29 	necessary. The vice-chair shall preside over the meetings of the basin board in the absence 
4.30 	of the chair. The secretary-treasurer or the designee of the secretary-treasurer shall keep a 
4.31 	record of all proceedings of the basin board. The secretary-treasurer shall provide for the 
4.32 	proper receipt and disbursement of funds.
4.33 		Subd. 4.Advisory committee. (a) A basin board must appoint an advisory 
4.34 	committee to advise and assist the basin board on all matters affecting the interests of the 
4.35 	basin and make recommendations to the basin board on all projects and improvements 
4.36 	proposed by the basin board.
5.1 	(b) The advisory committee consists of at least six members. The members of the 
5.2 	advisory committee shall be from the advisory committees of the watershed management 
5.3 	entities within the basin. If no watershed management entity exists, the advisory 
5.4 	committee member shall be appointed in the same manner as the basin membership under 
5.5 	subdivision 3. The members must be residents of the basin and shall serve two-year terms.
5.6 		Subd. 5.Basin management plans. Within 24 months of establishment under 
5.7 	section 103B.178 or 103B.179, a basin board shall adopt a basin management plan as 
5.8 	approved by the Board of Water and Soil Resources.
5.9 		Subd. 6.Watershed management entity plans. Within 120 days of establishment 
5.10 	of a basin board under section 103B.178 or 103B.179, all watershed management entity 
5.11 	plans and local water plans developed, according to or by entities created under sections 
5.12 	103B.231, 103B.235, 103B.255, 103B.311, 103B.501, 103B.601, 103B.651, 103C.331, 
5.13 	subdivision 11, and 103D.401, shall be submitted to the basin board for review and 
5.14 	comment on the consistency of the proposed plan with the basin management plan. A local 
5.15 	water management organization may use the watershed management entity plan to meet 
5.16 	the local water management plan requirements of chapters 103B, 103C, 103D, and 114D.
5.17 		Subd. 7.Taxing and other authority. (a) For taxes levied the year following 
5.18 	the establishment of a basin board and thereafter, a basin board with taxing authority 
5.19 	under paragraph (b) or a county with taxing authority under paragraph (c) may levy an ad 
5.20 	valorem tax not to exceed 0.048 percent of the taxable market value of all property within 
5.21 	the basin, or $1,000,000, whichever is less. A levy under this subdivision is in addition to 
5.22 	any other levy authorized by statute. The levy shall be allocated as follows:
5.23 	(1) one-half of the levy shall be credited to the general fund of the basin board and 
5.24 	shall be used: (i) to develop and implement the basin board's management plan; and (ii) 
5.25 	for water resource projects and programs of benefit to the basin. The basin board must 
5.26 	adopt criteria for application and allocation of these funds by the basin board; and
5.27 	(2) the remaining one-half of the levy shall be credited to the watershed management 
5.28 	fund of the watershed management entity for development, construction, maintenance, 
5.29 	implementation, and operation of projects and programs of benefit to the watershed and 
5.30 	basin for the restoration, enhancement, preservation, and protection of water and related 
5.31 	land resources. If no watershed management entity exists for a major watershed unit, 
5.32 	the levy under this clause shall be credited to the county and held by the county until a 
5.33 	watershed management entity is established, at which time the funds shall be transferred 
5.34 	for use by the watershed management entity.
5.35 	(b) A basin board may establish taxing authority under this section if the majority of 
5.36 	the members of the basin board are elected officials at the time the levy is established. 
6.1 	A basin board with taxing authority under this section is a special taxing district under 
6.2 	section 275.066.
6.3 	(c) A county may levy a tax under paragraph (a) on behalf of a basin board when a 
6.4 	basin board does not have taxing authority under paragraph (b). A county levying under 
6.5 	this section is a special taxing district under section 275.066.
6.6 	(d) A basin board may hire or contract for goods and services to carry out its 
6.7 	responsibilities under this section.
6.8 	(e) A basin board may participate in interstate and international basin organizations 
6.9 	that are geographically and hydrologically connected with the basin.
6.10 	(f) A basin board is eligible for funding from the clean water fund under section 
6.11 	114D.50, provided the basin board meets the requirements established under section 
6.12 	103B.18, subdivision 1.
6.13 	(g) A basin board may enter into joint powers agreements under section 471.59.

6.14 	Sec. 5. [103B.178] ESTABLISHMENT PETITION.
6.15 		Subdivision 1.Filing. To establish a basin board as permitted under section 
6.16 	103B.177, an establishment petition must be filed with the Board of Water and Soil 
6.17 	Resources.
6.18 		Subd. 2.Requirements. The establishment petition must state:
6.19 	(1) the name of the proposed basin board;
6.20 	(2) the major river basin under section 103B.177 to be represented by the board, 
6.21 	including a map and description of the property to be included;
6.22 	(3) the membership structure of the board meeting the requirements under section 
6.23 	103B.177, subdivision 3; and
6.24 	(4) whether the board intends to meet the elected official requirements for 
6.25 	establishing taxing authority under section 103B.177, subdivision 7.
6.26 		Subd. 3.Signatures. The establishment petition must be signed by one or more 
6.27 	of the following groups:
6.28 	(1) one-half or more of the counties, soil and water conservation districts, or 
6.29 	watershed districts located wholly or partially within the basin;
6.30 	(2) counties, soil and water conservation districts, or watershed districts collectively 
6.31 	having 50 percent or more of the area within the basin;
6.32 	(3) cities that represent the majority of city residents within the basin; or
6.33 	(4) 50 or more resident owners residing in a watershed from at least 25 percent of 
6.34 	the watersheds within the basin, excluding resident owners within the corporate limits of 
6.35 	a city if the city has signed the petition.
7.1 		Subd. 4.Filing establishment petitions. (a) The petitioners must file a copy of 
7.2 	the original establishment petition with a signed statement of delivery or receipt with the 
7.3 	auditors of affected counties and with the Board of Water and Soil Resources.
7.4 	(b) An auditor that receives a copy of an establishment petition must determine 
7.5 	whether the petitioners are resident owners from the tax records. The tax records are prima 
7.6 	facie evidence of ownership. The auditor must certify the number of petitioners that are 
7.7 	resident owners and file the certification with the Board of Water and Soil Resources.
7.8 	(c) After receiving a copy of the establishment petition, the Board of Water and Soil 
7.9 	Resources shall acknowledge that an establishment petition has been received and prepare 
7.10 	a preliminary river basin map and a preliminary report about the basin.
7.11 		Subd. 5.Similar and duplicate establishment petitions. Similar and duplicate 
7.12 	establishment petitions for the same proposed basin board may be filed and regarded as 
7.13 	one establishment petition. All establishment petitions filed before the establishment 
7.14 	hearing must be considered by the Board of Water and Soil Resources as part of the 
7.15 	original petition.
7.16 		Subd. 6.Defective establishment petition. An establishment petition that has the 
7.17 	requisite number of petitioner signatures may not be dismissed because of defects in the 
7.18 	establishment petition. The Board of Water and Soil Resources must allow petitioners to 
7.19 	amend a defective establishment petition at any time before the end of the establishment 
7.20 	hearing.
7.21 		Subd. 7.Withdrawal of petitioners. After an establishment petition has been filed, 
7.22 	a petitioner may not withdraw from the establishment petition unless the withdrawing 
7.23 	petitioner obtains the written consent of all other petitioners and files the written consent 
7.24 	with the Board of Water and Soil Resources.
7.25 		Subd. 8.Hearings; notice. (a) After receiving an establishment petition, the 
7.26 	Board of Water and Soil Resources must determine whether the establishment petition 
7.27 	has the requisite number of petitioner signatures. If the establishment petition does 
7.28 	not have the requisite number of petitioners, the board must dismiss the establishment 
7.29 	petition and return it to the petitioners with an explanation of why the petition was 
7.30 	dismissed. If the board determines that an establishment petition has the requisite number 
7.31 	of petitioner signatures, the board must, by order, set a time and location for hearings on 
7.32 	the establishment petition within 35 days after the board's determination. The hearings 
7.33 	must be held within the limits of the basin to be established unless the board determines 
7.34 	a suitable place is not located within the basin and selects a place within the limits of a 
7.35 	county that would be affected by the proposed basin board.
8.1 	(b) The Board of Water and Soil Resources must give notice of the establishment 
8.2 	hearings by publication in a legal newspaper that is published in counties affected by the 
8.3 	proposed basin board. The last publication must occur at least ten days before the last 
8.4 	establishment hearing. The board must give notice of the establishment hearings to the 
8.5 	commissioners of natural resources, agriculture, health, and the Pollution Control Agency 
8.6 	and to the auditors of counties and the chief executive officials of municipalities affected 
8.7 	by the proposed basin board. The notice must include:
8.8 	(1) a statement that an establishment petition has been filed with the board and 
8.9 	auditors of counties affected by the proposed basin board;
8.10 	(2) a general description of the need for the basin board;
8.11 	(3) a general description of the property to be included in the basin represented 
8.12 	by the proposed board;
8.13 	(4) the date, time, and location of the hearings; and
8.14 	(5) a statement that all persons affected or interested in the establishment of the basin 
8.15 	board may attend and give statements at the establishment hearings.
8.16 	(c) The Board of Water and Soil Resources must allow all persons interested in or 
8.17 	affected by the proposed basin board an opportunity to make oral and written statements at 
8.18 	the establishment hearings. The board may continue the establishment hearings.
8.19 		Subd. 9.Establishment order. (a) If the Board of Water and Soil Resources 
8.20 	determines after the establishment hearings that the establishment of the proposed basin 
8.21 	board would benefit the public welfare and public interest, the board must, by order, 
8.22 	establish the basin board. The order of the board establishing the basin board must include:
8.23 	(1) the findings of the board supporting its determination to establish the basin board;
8.24 	(2) the official name of the basin board;
8.25 	(3) the location of the principal place of business of the basin board;
8.26 	(4) the boundaries of the basin to be represented by the basin board; and
8.27 	(5) the membership of the basin board.
8.28 	(b) The Board of Water and Soil Resources must file a certified copy of the findings 
8.29 	and order establishing a basin board with the secretary of state and, at the same time:
8.30 	(1) mail a copy of the findings and order to the auditor of each county affected by the 
8.31 	basin board and to the commissioners of natural resources, agriculture, health, and the 
8.32 	Pollution Control Agency; and
8.33 	(2) have each basin board member personally served with a copy of the order.
8.34 	(c) A basin board established under this section exists from the time the order 
8.35 	establishing the basin board is filed with the secretary of state until the basin board is 
8.36 	terminated under section 103B.179.

9.1 	Sec. 6. [103B.179] AMENDMENTS AND TERMINATION.
9.2 		Subdivision 1.Amendment process. An establishment order for a basin board may 
9.3 	be amended as provided in this section. A proceeding to amend an establishment order 
9.4 	must be initiated by a petition to the Board of Water and Soil Resources requesting the 
9.5 	amendment. Amendments may include changes to the boundaries of the area represented 
9.6 	by the basin board, withdrawal of a portion of the area represented, additions to the area 
9.7 	represented, or consolidation of areas represented. The Red River Watershed Management 
9.8 	Board may reorganize and establish itself under this section as provided under section 
9.9 	103B.177.
9.10 		Subd. 2.Petition. (a) A petition for an amendment to an establishment order for a 
9.11 	basin board must include:
9.12 	(1) the name of the basin boards affected by any of the proposed changes;
9.13 	(2) a description, in general terms, of the property affected by the proposed changes;
9.14 	(3) reasons for the proposed changes;
9.15 	(4) by illustration in a map, the proposed changes; and
9.16 	(5) a request for the Board of Water and Soil Resources to establish the proposed 
9.17 	changes.
9.18 	(b) A petition for an amendment must be signed by:
9.19 	(1) one-half or more of the counties, soil and water conservation districts, or 
9.20 	watershed districts located wholly or partially within the basin;
9.21 	(2) counties, soil and water conservation districts, or watershed districts collectively 
9.22 	having 50 percent or more of the area within the basin;
9.23 	(3) cities that represent the majority of city residents within the basin;
9.24 	(4) 50 or more resident owners residing in a watershed from at least 25 percent of 
9.25 	the watersheds within the basin, excluding resident owners within the corporate limits of a 
9.26 	city if the city has signed the petition; or
9.27 	(5) the basin board by passage of a resolution authorizing the amendment.
9.28 		Subd. 3.Hearings. The Board of Water and Soil Resources must set a time and 
9.29 	location for hearings and give notice of the hearings in the same manner as establishment 
9.30 	hearings. If a petition for an amendment involves a common boundary of two or more 
9.31 	areas represented by established basin boards, the Board of Water and Soil Resources 
9.32 	must determine the basin where the hearings will be held.
9.33 		Subd. 4.Establishment of amendment. (a) After the hearings on the petition 
9.34 	for an amendment, the Board of Water and Soil Resources must establish the proposed 
9.35 	amendment, by order, if the board determines that establishment of the proposed 
10.1 	amendment would benefit the public welfare and public interest and the proposed 
10.2 	amendment would advance the purpose of this chapter.
10.3 	(b) In the order establishing the amendment, the board must include:
10.4 	(1) the findings of the board supporting its determination to establish the amendment; 
10.5 	and
10.6 	(2) the boundaries of the areas represented by the basin boards affected by the 
10.7 	amendment.
10.8 	(c) The board must file a certified copy of the findings and order establishing the 
10.9 	amendment with the secretary of state and, at the same time, mail a copy of the order to 
10.10 	the auditors of counties affected by the change, the commissioners of natural resources, 
10.11 	agriculture, health, and the Pollution Control Agency, and the members of basin boards 
10.12 	affected by the change. The amendment is effective the day the certified order establishing 
10.13 	the amendment is filed with the secretary of state.
10.14 		Subd. 5.Termination process. A basin board may be terminated under this 
10.15 	section. Proceedings for the termination of a basin board may only be initiated by 
10.16 	filing a termination petition with the Board of Water and Soil Resources. The board 
10.17 	may not accept a termination petition within five years from the date of a basin board's 
10.18 	establishment. The board may not make determinations or accept termination petitions for 
10.19 	basin boards more than once in five years.
10.20 		Subd. 6.Termination petition; certification. A termination petition must be signed 
10.21 	by a majority of the water management entities in the area represented by the basin board. 
10.22 	The termination petition must state that the existence of the basin board does not benefit 
10.23 	the public welfare and public interest and the basin board is not needed to accomplish 
10.24 	the purposes of this chapter. The petitioners must file a copy of the termination petition 
10.25 	with the auditors of the counties affected by the basin board. The original termination 
10.26 	petition with a statement signed for delivery or receipt of each of the termination petitions 
10.27 	submitted to the auditors of counties affected by the basin board must be filed with the 
10.28 	Board of Water and Soil Resources.
10.29 		Subd. 7.Termination hearing; notice. (a) When the Board of Water and Soil 
10.30 	Resources determines a termination petition has been filed that meets the requirements of 
10.31 	this section, the board must, by order, set a time within 35 days after its determination and 
10.32 	a location within the area represented by the basin board for a termination hearing.
10.33 	(b) The board must give notice of the termination hearing by publication in a legal 
10.34 	newspaper that is published in counties affected by the basin board. The last publication 
10.35 	must occur at least ten days before the termination hearing.
11.1 	(c) The board must give notice of the termination hearing by mail to the auditors of 
11.2 	counties and the chief executive officials of municipalities affected by the basin board.
11.3 	(d) The notice must include:
11.4 	(1) a statement that a termination petition has been filed with the board and auditors 
11.5 	of the counties affected by the basin board;
11.6 	(2) a general description of why the basin board is to be terminated;
11.7 	(3) a general description of the property within the area represented by the basin 
11.8 	board;
11.9 	(4) the date, time, and location of the hearing; and
11.10 	(5) a statement that all persons affected by or interested in the basin board may 
11.11 	attend and give statements at the termination hearing.
11.12 	(e) The Board of Water and Soil Resources must allow all persons affected by or 
11.13 	interested in the basin board to make oral and written statements at the termination 
11.14 	hearing. The board may continue the termination hearing.
11.15 		Subd. 8.Termination order. If, after the termination hearing, the Board of Water 
11.16 	and Soil Resources determines that the existence of the basin board does not benefit the 
11.17 	public welfare and public interest and the basin board is not needed to accomplish the 
11.18 	purpose of this chapter, the board must issue a termination order. The termination order 
11.19 	must include findings that support termination of the basin board and a statement that the 
11.20 	basin board is terminated. The board must file a certified copy of the termination order 
11.21 	with the secretary of state. A basin board ceases to be a political subdivision and ceases to 
11.22 	exist when a termination order for the basin board is filed with the secretary of state.

11.23 	Sec. 7. [103B.18] STANDARDS AND OVERSIGHT.
11.24 		Subdivision 1.Standards. A basin board may, in its basin management plan, adopt 
11.25 	additional performance and operational standards for its member watershed management 
11.26 	entities. A basin board, water management entity, or other local water management 
11.27 	organization is not eligible for funds from the clean water fund under section 114D.50 
11.28 	unless:
11.29 	(1) it is formally organized;
11.30 	(2) it has a water plan approved by the Board of Water and Soil Resources;
11.31 	(3) there is cooperation, coordination, and implementation on a watershed basin 
11.32 	basis; and
11.33 	(4) nonstate matching funds are available.
11.34 		Subd. 2.Corrective actions. (a) In addition to any other powers granted to the 
11.35 	Board of Water and Soil Resources, the Board of Water and Soil Resources may intervene 
12.1 	for the purpose of resolving disputes between a basin board and its member watershed 
12.2 	management entities and between watershed management entities.
12.3 	(b) A basin board may petition the Board of Water and Soil Resources to establish a 
12.4 	watershed district if deficiencies identified by the Board of Water and Soil Resources are 
12.5 	not corrected within two years. The Board of Water and Soil Resources may, after public 
12.6 	notice and hearing, declare a watershed management organization nonimplementing and 
12.7 	initiate proceedings for establishment of a watershed district.
12.8 		Subd. 3.Rules. (a) The Board of Water and Soil Resources shall adopt rules 
12.9 	establishing standards and criteria for making determinations of whether basin boards are 
12.10 	implementing basin management plans as required under section 103B.177, subdivision 5.
12.11 	(b) If the Board of Water and Soil Resources determines, according to the rules 
12.12 	established by the board under this subdivision, that a basin board has not developed a basin 
12.13 	management plan, or is not implementing the plan or has not delegated implementation 
12.14 	of the plan, the Board of Water and Soil Resources may, based on an evaluation of basin 
12.15 	management plan implementation, reduce, withhold, restrict, or redirect grants and other 
12.16 	funding if the basin board or its members have not corrected deficiencies as prescribed 
12.17 	in a notice from the board within one year from the date of the notice. The board may 
12.18 	defer a decision on a termination petition filed under section 103B.179 for up to one 
12.19 	year to conduct or update the evaluation or to communicate the results of the evaluation 
12.20 	to petitioners or to local and state government agencies. In addition, state agencies may 
12.21 	withhold from local governments delegation of state water resource regulatory authority 
12.22 	within the basin and may suspend issuance of water-related permits within the basin. This 
12.23 	paragraph applies until the Board of Water and Soil Resources determines that a plan is 
12.24 	being implemented according to rules adopted under this subdivision.

12.25 	Sec. 8. Minnesota Statutes 2010, section 103B.231, subdivision 4, is amended to read:
12.26 		Subd. 4.General standards. (a) The watershed management plan must specify the 
12.27 	period covered by the plan and must extend at least five years but no more than ten years 
12.28 	from the date the board approves the plan. Plans that contain revision dates inconsistent 
12.29 	with this section must comply with that date, provided it is not more than ten years beyond 
12.30 	the date of board approval.
12.31 	(b) The plan must be reviewed for consistency with an adopted county groundwater 
12.32 	plan, and revised to the degree necessary to become compliant with the groundwater plan 
12.33 	no later than two years after adoption by the county. A one-year extension may be granted 
12.34 	by the board. Upon the request of a watershed management organization, the county shall 
12.35 	provide a written statement that:
13.1 	(1) identifies any substantial inconsistencies between the watershed plan and the 
13.2 	groundwater plan and any substantial adverse effects of the watershed plan on the 
13.3 	groundwater plan; and
13.4 	(2) evaluates, estimates the cost of, and recommends alternatives for amending the 
13.5 	watershed plan to rectify any substantial inconsistencies and adverse effects.
13.6 	(c) The plan shall contain the elements required by subdivision 6. Each element shall 
13.7 	be set out in the degree of detail and prescription necessary to accomplish the purposes 
13.8 	of sections 103B.205 to 103B.255, considering the character of existing and anticipated 
13.9 	physical and hydrogeologic conditions, land use, and development and the severity of 
13.10 	existing and anticipated water management problems in the watershed. 
13.11 	(d) Existing plans of a watershed management organization shall remain in force and 
13.12 	effect until amended or superseded by plans adopted under sections 103B.205 to 103B.255. 
13.13 	(e) Watershed management organizations shall coordinate their planning activities 
13.14 	with basin boards, contiguous watershed management organizations and counties 
13.15 	conducting water planning and implementation under sections 103B.101 and 103B.301
13.16 	to 103B.355. 
13.17 	(f) The plan must be consistent with the basin watershed management policy 
13.18 	established in section 103A.212.

13.19 	Sec. 9. Minnesota Statutes 2010, section 103B.245, subdivision 1, is amended to read:
13.20 		Subdivision 1.Watershed management tax district. (a) Any local government unit 
13.21 	planning for water management under sections section 103B.177, 103B.178,103B.231
13.22 	and, or103B.235 may establish a watershed management tax district in the territory 
13.23 	within the watershed, for the purpose of paying the costs of the planning required under 
13.24 	sections section 103B.177,103B.231and, or103B.235. 
13.25 	(b) Any local government unit which has part of its territory within a watershed 
13.26 	for which a plan has been adopted in accordance with section 103B.177, 103B.178, or 
13.27 	103B.231 and which has a local water management plan adopted in accordance with 
13.28 	section 103B.177, 103B.178, or 103B.235 may establish a watershed management tax 
13.29 	district in the territory within the watershed or a subwatershed unit in the watershed, 
13.30 	for the purpose of paying capital costs of the water management facilities described in 
13.31 	the capital improvement program of the plans and for the purpose of paying for normal 
13.32 	and routine maintenance of the facilities. 
13.33 	(c) A county or counties required by section 103B.231, subdivision 3, to prepare, 
13.34 	adopt, and implement a watershed plan shall apportion the costs of planning, capital 
13.35 	improvements, and maintenance proportionate to benefits. The county may apportion the 
14.1 	costs among the subwatershed units in the watershed, or among the statutory and home 
14.2 	rule charter cities and towns having territory in the watershed, and for this purpose may 
14.3 	establish more than one watershed management tax district in the watershed. 
14.4 	(d) Notification of new watershed management tax districts established under this 
14.5 	subdivision must be made to the county auditor by July 1 in order to be effective for 
14.6 	taxes payable in the following year.

14.7 	Sec. 10. Minnesota Statutes 2010, section 103B.3369, subdivision 2, is amended to 
14.8 	read:
14.9 		Subd. 2.Establishment. A local water resources protection and management 
14.10 	program is established. The board may provide financial assistance to local units of 
14.11 	government or to basin boards as defined in section 103B.176, paragraph (b), for activities 
14.12 	that protect or manage water and related land quality. The activities include planning, 
14.13 	zoning, official controls, and other activities to implement local water management plans.

14.14 	Sec. 11. Minnesota Statutes 2010, section 103B.3369, subdivision 5, is amended to 
14.15 	read:
14.16 		Subd. 5.Financial assistance. (a) A base grant may be awarded to a county that 
14.17 	provides a match utilizing a water implementation tax or other local source. A water 
14.18 	implementation tax that a county intends to use as a match to the base grant must be levied 
14.19 	at a rate determined by the board. The minimum amount of the water implementation tax 
14.20 	shall be a tax rate times the adjusted net tax capacity of the county for the preceding year. 
14.21 	The rate shall be the rate, rounded to the nearest .001 of a percent, that, when applied to 
14.22 	the adjusted net tax capacity for all counties, raises the amount of $1,500,000. The base 
14.23 	grant will be in an amount equal to $37,500 less the amount raised by the local match. 
14.24 	If the amount necessary to implement the local water plan for the county is less than 
14.25 	$37,500, the amount of the base grant shall be the amount that, when added to the match 
14.26 	amount, equals the amount required to implement the plan. For counties where the tax 
14.27 	rate generates an amount equal to or greater than $18,750, the base grant shall be in an 
14.28 	amount equal to $18,750.
14.29 	(b) A base grant may be awarded to a basin board as defined in section 103B.176, 
14.30 	paragraph (b), for the development and implementation of a basin management plan under 
14.31 	section 103B.177, subdivision 5.

14.32 	Sec. 12. Minnesota Statutes 2010, section 103D.205, subdivision 3, is amended to read:
15.1 		Subd. 3.Signatures. The establishment petition must be signed by one or more 
15.2 	of the following groups:
15.3 	(1) one-half or more of the counties within the proposed watershed district;
15.4 	(2) counties having 50 percent or more of the area within the proposed watershed 
15.5 	district;
15.6 	(3) a majority of the cities within the proposed watershed district; or
15.7 	(4) 50 or more resident owners residing in the proposed watershed district, excluding 
15.8 	resident owners within the corporate limits of a city if the city has signed the petition; or
15.9 	(5) a basin board as defined under section 103B.176, paragraph (b).

15.10 	Sec. 13. Minnesota Statutes 2010, section 103D.401, subdivision 1, is amended to read:
15.11 		Subdivision 1.Contents. (a) The managers must adopt a watershed management 
15.12 	plan for any or all of the purposes for which a watershed district may be established. 
15.13 	The watershed management plan must give a narrative description of existing water and 
15.14 	water-related problems within the watershed district, possible solutions to the problems, 
15.15 	and the general objectives of the watershed district. The watershed management plan 
15.16 	must also conform closely with watershed management plan guidelines as adopted and 
15.17 	amended from time to time by the Board of Water and Soil Resources and be consistent 
15.18 	with the basin watershed management policy established in section 103A.212.
15.19 	(b) The watershed management plan may include a separate section on proposed 
15.20 	projects. If the watershed district is within the metropolitan area, the separate section of 
15.21 	proposed projects or petitions for projects to be undertaken according to the watershed 
15.22 	management plan is a comprehensive plan of the watershed district for purposes of review 
15.23 	by the Metropolitan Council under section 473.165. 

15.24 	Sec. 14. Minnesota Statutes 2010, section 275.066, is amended to read:
15.25 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
15.26 	For the purposes of property taxation and property tax state aids, the term "special 
15.27 	taxing districts" includes the following entities:
15.28 	(1) watershed districts under chapter 103D;
15.29 	(2) sanitary districts under sections 115.18 to 115.37;
15.30 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
15.31 	(4) regional public library districts under section 134.201;
15.32 	(5) park districts under chapter 398;
15.33 	(6) regional railroad authorities under chapter 398A;
15.34 	(7) hospital districts under sections 447.31 to 447.38;
16.1 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
16.2 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
16.3 	(10) regional development commissions under sections 462.381 to 462.398;
16.4 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
16.5 	(12) port authorities under sections 469.048 to 469.068;
16.6 	(13) economic development authorities under sections 469.090 to 469.1081;
16.7 	(14) Metropolitan Council under sections 473.123 to 473.549;
16.8 	(15) Metropolitan Airports Commission under sections 473.601 to 473.680;
16.9 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
16.10 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
16.11 	chapter 437, section 1;
16.12 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 
16.13 	6;
16.14 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
16.15 	sections 1 to 6;
16.16 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
16.17 	5, section 39;
16.18 	(21) Middle Mississippi River Watershed Management Organization under sections 
16.19 	103B.211 and 103B.241;
16.20 	(22) emergency medical services special taxing districts under section 144F.01;
16.21 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
16.22 	103B.251;
16.23 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
16.24 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
16.25 	(25) an airport authority created under section 360.0426; and
16.26 	(26) a basin board or county under section 103B.177; and
16.27 	(27) any other political subdivision of the state of Minnesota, excluding counties, 
16.28 	school districts, cities, and towns, that has the power to adopt and certify a property tax 
16.29 	levy to the county auditor, as determined by the commissioner of revenue.

16.30 	Sec. 15. APPROPRIATION.
 16.31 	$....... is appropriated from the clean water fund in fiscal years .... to .... as a onetime 
16.32 	appropriation to the Board of Water and Soil Resources for grants to basin boards to assist 
16.33 	in development of the basin plan goals, objectives, priorities, and outcomes.
17.1 	$....... in fiscal year .... and $....... in fiscal year .... are appropriated from the clean 
17.2 	water fund to the Board of Water and Soil Resources for increased staffing and capacity 
17.3 	to support the watershed management effort of this act.