1.1 	A bill for an act
1.2 	relating to natural resources; requiring certain soil and water conservation district 
1.3 	supervisors to be elected by supervisor districts; modifying authority of soil and 
1.4 	water conservation districts; granting levy authority; providing for creation of 
1.5 	soil and water management areas;amending Minnesota Statutes 2012, section 
1.6 	103C.331, subdivision 16, by adding a subdivision; Minnesota Statutes 2013 
1.7 	Supplement, sections 103C.311, subdivision 2; 275.066; proposing coding for 
1.8 	new law in Minnesota Statutes, chapter 103C.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2013 Supplement, section 103C.311, subdivision 2, 
1.11 	is amended to read:
1.12 		Subd. 2.Supervisors elected by districts. (a) The A district board, with the 
1.13 	approval of the state board, may shall by resolution provide that supervisors will be 
1.14 	elected by supervisor districts as provided in this subdivision.
1.15 	(b) A district board exercising its levy authority as provided under section 103C.332 
1.16 	shall by resolution provide that the district's supervisors will be elected by supervisor 
1.17 	districts.
1.18 	(b) (c) The supervisor districts must be composed of precincts established by 
1.19 	county and municipal governing bodies under section 204B.14. The districts must be 
1.20 	compact, include only contiguous territory, and be substantially equal in population. 
1.21 	The districts must be numbered in a regular series. The districts must be drawn by the 
1.22 	county board of the county containing the largest area of the soil and water conservation 
1.23 	district, in consultation with the district board and with the approval of the state board. 
1.24 	The boundaries of the districts must be redrawn after each decennial federal census as 
1.25 	provided in section 204B.135. A certified copy of the resolution establishing supervisor 
1.26 	districts must be filed by the chair of the district board with the county auditor of the 
2.1 	counties where the soil and water conservation district is located, with the state board, and 
2.2 	with the secretary of state, and the filings must occur within 80 days of the time when the 
2.3 	legislature has been redistricted or at least 15 weeks before the state primary election in a 
2.4 	year ending in two, whichever comes first.
2.5 	(c) (d) Each supervisor district is entitled to elect one supervisor. A supervisor must 
2.6 	be a resident of the district from which elected.
2.7 	(d) (e) The district board shall provide staggered terms for supervisors elected by 
2.8 	district. After each redistricting, there shall be a new election of supervisors in all the 
2.9 	districts at the next general election, except that if the change made in the boundaries of a 
2.10 	district is less than five percent of the average population of all the districts, the supervisor 
2.11 	in office at the time of the redistricting shall serve for the full term for which elected. The 
2.12 	district board shall determine by lot the seats to be filled for a two-year term, a four-year 
2.13 	term, and a six-year term.

2.14 	Sec. 2. Minnesota Statutes 2012, section 103C.331, subdivision 16, is amended to read:
2.15 		Subd. 16.Budget. The district board shall annually present a budget consisting of 
2.16 	an itemized statement of district expensesa work plan, projected outcomes and budget 
2.17 	for the ensuing calendar year to the boards of county commissioners of the counties in 
2.18 	which the district is located. The county boards may levy an annual tax on all taxable real 
2.19 	property in the district for the amount that the boards determine is necessary to meet the 
2.20 	requirements of the district. The amount levied shall be collected and distributed to the 
2.21 	district as prescribed by chapter 276 or the district may adopt and certify a levy according 
2.22 	to section 103C.332. The amount may be spent by the district board for a district purpose 
2.23 	authorized by law.

2.24 	Sec. 3. Minnesota Statutes 2012, section 103C.331, is amended by adding a 
2.25 	subdivision to read:
2.26 		Subd. 21.Water resource management activities. The supervisors may conduct 
2.27 	studies of and monitor soil and water resources within the district, implement soil and 
2.28 	water resource management programs, and evaluate the effectiveness of the programs.

2.29 	Sec. 4. [103C.332] BUDGET; DISTRICT FUNDS, LEVIES, AND CHARGES.
2.30 		Subdivision 1.District operations fund. (a) A district shall create an operations 
2.31 	fund consisting of:
2.32 	(1) revenue received from the county for operation of the district under section 
2.33 	103C.331, subdivision 16; and
3.1 	(2) revenue collected from charges associated with the establishment of a soil and 
3.2 	water management area under section 103C.333.
3.3 	(b) The money in the fund shall be used for administrative costs, technical 
3.4 	assistance, projects, and programs that are of common benefit to the soil and water 
3.5 	resources in the district.
3.6 		Subd. 2.Soil and water management fund. A district may create a soil and water 
3.7 	management fund or funds for implementation of special projects and programs or to 
3.8 	match grants from outside sources consisting of:
3.9 	(1) charges levied or to be levied against real property in one or more soil and water 
3.10 	management areas, established under section 103C.333, for the implementation of special 
3.11 	projects and programs of the district or to match grants authorized by the district board; and 
3.12 	(2) revenue received from a county, state, or federal agency for implementation of 
3.13 	special projects and programs of the district or to match grants.
3.14 		Subd. 3.Clean water matching fund. (a) A district shall create a clean water 
3.15 	matching fund consisting of an ad valorem tax levy, which may not exceed 0.048 percent 
3.16 	of taxable market value or $1,000,000, whichever is less.
3.17 	(b) The money in the fund shall be used to match other funding for projects and 
3.18 	programs within the district.
3.19 		Subd. 4.Budget adoption. On or before September 15 of each year, the district 
3.20 	board shall adopt a budget for the next year and decide on the total amount necessary to be 
3.21 	raised from ad valorem tax levies, soil and water management charges, or other sources to 
3.22 	meet the district's budget.
3.23 		Subd. 5.Budget hearing. (a) Before adopting a budget, the district board shall hold 
3.24 	a public hearing on the proposed budget.
3.25 	(b) The district board shall publish a notice of the hearing with a summary of 
3.26 	the proposed budget in one or more newspapers of general circulation in each county 
3.27 	comprising part of the district. The notice and summary shall be published once each 
3.28 	week for two successive weeks before the hearing. The last publication shall be at least 
3.29 	two days before the hearing.
3.30 		Subd. 6.Certification of levy to auditor. After adoption of the budget and no 
3.31 	later than September 15, the district shall certify to the auditor of each county within the 
3.32 	district the county's share of an authorized tax, which shall be an amount bearing the same 
3.33 	proportion to the total tax levy as the net tax capacity of the area of the county within the 
3.34 	district bears to the net tax capacity of the entire district. The maximum amount of a levy 
3.35 	may not exceed the amount provided in subdivision 2.
4.1 		Subd. 7.Levy. Section 275.067 applies to levies authorized by this section. The 
4.2 	auditor of each county in the district shall add the amount of an authorized levy made by 
4.3 	the district board to the other tax levies on the property of the county within the district 
4.4 	for collection by the county treasurer with other taxes. The county treasurer shall make 
4.5 	settlement of the taxes collected with the treasurer of the district in the same manner as 
4.6 	other taxes are distributed to the other political subdivisions.
4.7 		Subd. 8.Election of supervisors. All district supervisors within a district must be 
4.8 	elected by supervisor districts as required under section 103C.311, subdivision 2, prior 
4.9 	to the district exercising levy authority under this section.

4.10 	Sec. 5. [103C.333] SOIL AND WATER MANAGEMENT AREA.
4.11 		Subdivision 1.Soil and water management area. (a) Except as provided in 
4.12 	paragraph (b), a district may establish, consistent with the district's comprehensive plan, 
4.13 	a soil and water management area or areas within the district's territory, for collecting 
4.14 	revenues and paying the costs of programs and projects that are consistent with the 
4.15 	district's comprehensive plan and authorized under sections 103B.301 to 103B.355, 
4.16 	103C.331, 103C.501, and 103C.601.
4.17 	(b) A district may not establish a soil and water management area that includes an 
4.18 	area that is within an area delineated under section 103B.211, by a watershed management 
4.19 	organization, or within a watershed district.
4.20 		Subd. 2.Procedure. A district may establish a soil and water management area 
4.21 	only by district board order after public notice and hearings. The proposed order shall 
4.22 	describe with particularity the territory to be included in the soil and water management 
4.23 	area, the purpose of the soil and water management area, the budgeting process including 
4.24 	public notice and hearing that will be used to set the amount of the necessary charges each 
4.25 	year, the methods used to determine charges, and the length of time the soil and water 
4.26 	management area will remain in force. After adoption, the order shall be filed with the 
4.27 	county auditor and county recorder. The soil and water management area may be dissolved 
4.28 	by the procedure prescribed for the establishment of the soil and water management area.
4.29 		Subd. 3.Notification. The district board shall, ten days prior to a hearing 
4.30 	regarding the programs and projects implemented under this section, provide notice to the 
4.31 	cities and counties within the soil and water management area. The cities and counties 
4.32 	receiving notice shall submit to the district board requests and concerns relating to the 
4.33 	implementation of the programs or projects. The district board shall consider the concerns 
4.34 	of the cities and counties in its decision.

5.1 	Sec. 6. Minnesota Statutes 2013 Supplement, section 275.066, is amended to read:
5.2 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
5.3 	For the purposes of property taxation and property tax state aids, the term "special 
5.4 	taxing districts" includes the following entities:
5.5 	(1) watershed districts under chapter 103D;
5.6 	(2) sanitary districts under sections 442A.01 to 442A.29;
5.7 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
5.8 	(4) regional public library districts under section 134.201;
5.9 	(5) park districts under chapter 398;
5.10 	(6) regional railroad authorities under chapter 398A;
5.11 	(7) hospital districts under sections 447.31 to 447.38;
5.12 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
5.13 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
5.14 	(10) regional development commissions under sections 462.381 to 462.398;
5.15 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
5.16 	(12) port authorities under sections 469.048 to 469.068;
5.17 	(13) economic development authorities under sections 469.090 to 469.1081;
5.18 	(14) Metropolitan Council under sections 473.123 to 473.549;
5.19 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
5.20 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
5.21 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
5.22 	chapter 437, section 1;
5.23 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
5.24 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
5.25 	sections 1 to 6;
5.26 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
5.27 	5, section 39;
5.28 	(21) Middle Mississippi River Watershed Management Organization under sections 
5.29 	103B.211 and 103B.241;
5.30 	(22) emergency medical services special taxing districts under section 144F.01;
5.31 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
5.32 	103B.251;
5.33 	(24) soil and water conservation districts under chapter 103C;
5.34 	(25) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
5.35 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
5.36 	(25) (26) an airport authority created under section 360.0426; and
6.1 	(26) (27) any other political subdivision of the state of Minnesota, excluding 
6.2 	counties, school districts, cities, and towns, that has the power to adopt and certify a 
6.3 	property tax levy to the county auditor, as determined by the commissioner of revenue.