1.1                          A bill for an act 
  1.2             relating to watershed districts; authorizing an ad 
  1.3             valorem tax levy to pay the costs of projects and to 
  1.4             secure bonds and notes issued by watershed districts 
  1.5             in connection with state loan programs; amending 
  1.6             Minnesota Statutes 1996, section 103D.905, 
  1.7             subdivisions 4, 5, and by adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 103D.905, 
  1.10  subdivision 4, is amended to read: 
  1.11     Subd. 4.  [BOND FUND.] A bond fund consists of the proceeds 
  1.12  of special assessments, storm water charges, loan repayments, 
  1.13  and ad valorem tax levies pledged by the watershed district for 
  1.14  the payment of bonds or notes issued by the watershed district 
  1.15  ~~secured by the property of the watershed district that is~~ 
  1.16  ~~producing or is likely to produce a regular income~~.  The bond 
  1.17  fund is to be used for the payment of the ~~purchase price of the~~ 
  1.18  ~~property or the value of the property as determined by the court~~ 
  1.19  ~~in proper proceedings and for the improvement and development of~~ 
  1.20  ~~the property~~ principal of, premium or administrative surcharge, 
  1.21  if any, and interest on the bonds and notes issued by the 
  1.22  watershed district and for payments required to be made to the 
  1.23  federal government under section 148(f) of the Internal Revenue 
  1.24  Code of 1986, as amended.  
  1.25     Sec. 2.  Minnesota Statutes 1996, section 103D.905, 
  1.26  subdivision 5, is amended to read: 
  2.1      Subd. 5.  [CONSTRUCTION OR IMPLEMENTATION FUND.] (a) A 
  2.2   construction or implementation fund consists of:  
  2.3      (1) the proceeds of watershed district bonds or notes or of 
  2.4   the sale of county bonds; 
  2.5      (2) construction or implementation loans from the pollution 
  2.6   control agency under sections 103F.701 to 103F.761, or from any 
  2.7   agency of the federal government; and 
  2.8      (3) special assessments, storm water charges, loan 
  2.9   repayments, and ad valorem tax levies levied or to be levied to 
  2.10  supply funds for the construction or implementation of the 
  2.11  projects of the watershed district, including reservoirs, 
  2.12  ditches, dikes, canals, channels, storm water facilities, sewage 
  2.13  treatment facilities, wells, and other works, and the expenses 
  2.14  incident to and connected with the construction or 
  2.15  implementation. 
  2.16     (b) Construction or implementation loans from the pollution 
  2.17  control agency under sections 103F.701 to 103F.761, or from an 
  2.18  agency of the federal government may be repaid from ~~money~~ 
  2.19  ~~collected by~~ the proceeds of watershed district bonds or notes 
  2.20  or from the collections of storm water charges, loan repayments, 
  2.21  ad valorem tax levies, or special assessments on properties 
  2.22  benefited by the project.  
  2.23     Sec. 3.  Minnesota Statutes 1996, section 103D.905, is 
  2.24  amended by adding a subdivision to read: 
  2.25     Subd. 9.  [PROJECT TAX LEVY.] In addition to other tax 
  2.26  levies provided in this section or in any other law, a watershed 
  2.27  district may levy a tax: 
  2.28     (1) to pay the costs of projects undertaken by the 
  2.29  watershed district which are to be funded, in whole or in part, 
  2.30  with the proceeds of grants or construction or implementation 
  2.31  loans from the pollution control agency under sections 103F.701 
  2.32  to 103F.761, or from any agency of the federal government; 
  2.33     (2) to pay the principal of, premium or administrative 
  2.34  surcharge, if any, and interest on the bonds and notes issued by 
  2.35  the watershed district; or 
  2.36     (3) to repay the construction or implementation loans.  
  3.1      Taxes levied with respect to payment of bonds and notes 
  3.2   shall comply with section 475.61.