1.1 	A bill for an act
1.2 	relating to environment; establishing the Minnesota River Basin Commission 
1.3 	with taxing authority; appropriating money;amending Minnesota Statutes 
1.4 	2006, sections 103D.205, subdivision 3; 275.066; Minnesota Statutes 2007 
1.5 	Supplement, section 103B.102, subdivision 2; proposing coding for new law 
1.6 	in Minnesota Statutes, chapter 103B.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2007 Supplement, section 103B.102, subdivision 2, 
1.9 	is amended to read:
1.10 		Subd. 2.Definitions. For the purposes of this section, "local water management 
1.11 	entities" means watershed districts, soil and water conservation districts, metropolitan 
1.12 	water management organizations, the Minnesota River Basin Commission under section 
1.13 	103B.177, and counties operating separately or jointly in their role as local water 
1.14 	management authorities under chapter 103B, 103C, 103D, or 103G and chapter 114D.

1.15 	Sec. 2. [103B.176] DEFINITIONS.
1.16 	(a) For the purposes of sections 103B.176 to 103B.179, the following terms have 
1.17 	the meanings given.
1.18 	(b) "Basin" means the Minnesota River Basin.
1.19 	(c) "Board" means the Board of Water and Soil Resources.
1.20 	(d) "Commission" means the Minnesota River Basin Commission established in 
1.21 	section 103B.177, subdivision 2.
1.22 	(e) "Local water management entities" means watershed districts, soil and water 
1.23 	conservation districts, metropolitan water management organizations, lake improvement 
2.1 	districts, lake conservation districts, and counties under chapters 103B, 103C, 103D, 
2.2 	and 114. 
2.3 	(f) "Watershed management organization" means a watershed district under chapter 
2.4 	103D; a watershed management organization under section 103B.211; or a formally 
2.5 	organized joint powers organization of counties, cities, soil and water conservation 
2.6 	districts, and watershed districts located outside the seven-county metropolitan area 
2.7 	as defined under section 473.121, subdivision 4, encompassing one or more of the 
2.8 	state's major watersheds. Lake improvement districts are not watershed management 
2.9 	organizations.

2.10 	Sec. 3. [103B.177] MINNESOTA RIVER BASIN COMMISSION.
2.11 		Subdivision 1.Purpose. The purposes of the Minnesota River Basin Commission 
2.12 	are to provide the following for the Minnesota River Basin:
2.13 	(1) protect, preserve, and use natural surface and groundwater storage and retention 
2.14 	systems;
2.15 	(2) maximize benefits of public capital expenditures needed to correct flooding and 
2.16 	water quality problems;
2.17 	(3) identify and plan for means to effectively protect and improve surface and 
2.18 	groundwater quality;
2.19 	(4) establish more uniform policies, goals, and objectives for surface water and 
2.20 	groundwater management;
2.21 	(5) prevent erosion of soil and associated pollutants into surface water systems;
2.22 	(6) promote groundwater recharge;
2.23 	(7) protect and enhance fish and wildlife habitat;
2.24 	(8) secure other benefits associated with the sustainable use and management of 
2.25 	surface water and groundwater resources;
2.26 	(9) promote coordination and cooperation among basin water management 
2.27 	organizations;
2.28 	(10) work with other public agencies and citizen volunteers collecting scientific data 
2.29 	used to identify and restore impaired waters; and
2.30 	(11) facilitate resolution of water resources conflicts.
2.31 		Subd. 2.Minnesota River Basin Commission. (a) The Minnesota River Basin 
2.32 	Commission is established in the Minnesota River Basin. The commission's purpose 
2.33 	is to coordinate basin water management activities, implement projects and programs 
2.34 	of common benefit to the basin, and monitor performance of local water management 
2.35 	entities within the basin.
3.1 	(b) Membership of the commission consists of one member from each of the existing 
3.2 	13 subwatershed organizations within the basin and one member from each of the major 
3.3 	watershed units where there is no formally organized watershed management organization 
3.4 	within the basin. The governing body for each watershed management organization shall 
3.5 	appoint one member. If no watershed management organization exists, the counties 
3.6 	and soil and water conservation districts located wholly or partially within each major 
3.7 	watershed unit, or any watershed district located partially within, shall jointly appoint one 
3.8 	member that resides in the major watershed unit. A member of the commission must be 
3.9 	a county commissioner, a soil and water conservation district supervisor, a watershed 
3.10 	district manager, or an elected city official.
3.11 	(c) The commission shall annually elect from among its members a chair, vice-chair, 
3.12 	and secretary-treasurer who shall serve for concurrent three-year terms. The chair shall 
3.13 	preside over all meetings of the commission and may call special meetings at reasonable 
3.14 	times and with adequate notice, when necessary. The vice-chair shall preside over 
3.15 	the meetings of the commission in the absence of the chair. The secretary-treasurer 
3.16 	or the designee of the secretary-treasurer shall keep a record of all proceedings of the 
3.17 	commission. The secretary-treasurer shall provide for the proper receipt and disbursement 
3.18 	of funds.
3.19 	(d) On or before January 1, 2010, the commission shall submit to the board for 
3.20 	approval an organization plan that details the commission's membership, structure, and 
3.21 	operating authority in order to meet the requirements of sections 103B.176 to 103B.179, 
3.22 	including the incorporation of the existing Minnesota River Basin Joint Powers Board 
3.23 	into the commission.
3.24 		Subd. 3.Advisory committee. (a) The Minnesota River Basin Commission must 
3.25 	annually appoint an advisory committee to advise and assist the commission on all matters 
3.26 	affecting the interests of the basin and make recommendations to the commission on all 
3.27 	contemplated projects and improvements in the basin.
3.28 	(b) The advisory committee consists of at least six members. One-half of the 
3.29 	members of the advisory committee should be public officials from local units of 
3.30 	government. The remaining one-half should be landowners within the basin. The 
3.31 	members must be residents of the basin.
3.32 		Subd. 4.Basin management plans. On or before January 1, 2012, the commission 
3.33 	shall adopt a basin management plan and submit the plan to the board for approval that 
3.34 	builds on local water plans, establishes goals and measurable outcomes, and coordinates 
3.35 	actions addressing the water quality, flood protection, land conservation, and related 
3.36 	ecosystem needs of the basin. 
4.1 		Subd. 5.Watershed management organization plans. Effective January 1, 
4.2 	2010, all watershed management organization plans and local water plans within the 
4.3 	basin developed under sections 103B.231, 103B.235, 103B.255, 103B.311, 103B.501, 
4.4 	103B.601, 103B.651, 103C.331, subdivision 11, and 103D.401, shall be submitted to the 
4.5 	commission for review and comment on the consistency of the proposed plan with the 
4.6 	basin management plan. A county or soil and water conservation district may use this 
4.7 	plan to meet the local water management plan requirements of sections 103B.311 and 
4.8 	103C.331, subdivision 11.
4.9 		Subd. 6.Taxing and other authority. (a) For taxes levied in 2009, payable in 2010 
4.10 	and thereafter, the commission, following approval of its basin management plan under 
4.11 	subdivision 4, may levy an ad valorem tax not to exceed 0.048 percent of the taxable 
4.12 	market value of all property within the basin, or $......, whichever is less. The levy is in 
4.13 	addition to any other levy authorized by statute. One-half of the levy shall be credited 
4.14 	to the watershed management fund of the watershed management organization for 
4.15 	development, construction, maintenance, implementation, and operation of projects and 
4.16 	programs of benefit to the watershed for the restoration, enhancement, preservation, and 
4.17 	protection of water and related land resources. If no watershed management organization 
4.18 	exists for a major watershed unit, the one-half levy amount shall be credited to the county 
4.19 	and held by the county until a watershed management organization is established at which 
4.20 	time the funds will be transferred for use by the watershed management organization. The 
4.21 	remaining one-half of the levy shall be credited to the general fund of the commission 
4.22 	and shall be used for water resource projects and programs of benefit to the basin. The 
4.23 	commission must adopt criteria for application and allocation of these funds by the 
4.24 	commission.
4.25 	(b) For purposes of this section, the commission shall be considered a special taxing 
4.26 	district under section 275.066.
4.27 	(c) The commission may hire or contract for resources to carry out its responsibilities 
4.28 	under this section.
4.29 	(d) The commission has the authority to and must participate in interstate and 
4.30 	international river basin organizations that are geographically and hydrologically 
4.31 	connected with the river basin.

4.32 	Sec. 4. [103B.178] WATERSHED MANAGEMENT ORGANIZATIONS.
4.33 		Subdivision 1.Authority. (a) A party to a joint powers agreement under section 
4.34 	471.59 to jointly or cooperatively manage or plan for the management of surface water and 
4.35 	groundwater in a watershed within the Minnesota River Basin under this section has, in 
5.1 	addition to other authorities granted under section 471.59, the authority to prepare, adopt, 
5.2 	and implement a plan for the watershed meeting the requirements of section 103B.231.
5.3 	(b) Decisions by a joint powers board may not require more than a majority vote, 
5.4 	except a decision on a capital improvement project, which may require no more than a 
5.5 	two-thirds vote.
5.6 		Subd. 2.Review of watershed boundaries. Before commencing planning, a 
5.7 	watershed management organization established under this section and section 471.59 
5.8 	must submit a map delineating the boundaries of the watershed management organization 
5.9 	to the board for review and comment. The board has 60 days to comment.

5.10 	Sec. 5. [103B.179] ACCOUNTABILITY AND OVERSIGHT.
5.11 		Subdivision 1.Standards. The Minnesota River Basin Commission may in its basin 
5.12 	management plan adopt additional performance and operational standards for its member 
5.13 	watershed management organizations. Water management organizations or local water 
5.14 	management entities are not eligible for Clean Water Legacy restoration and protection 
5.15 	implementation grants or loans unless they are formally organized and have a water plan 
5.16 	approved by the board and there is cooperation, coordination, and implementation on 
5.17 	a watershed basis.
5.18 		Subd. 2.Corrective actions. (a) In addition to any other powers granted to 
5.19 	the board, the board may intervene for the purpose of resolving disputes between the 
5.20 	commission and its member watershed management organizations.
5.21 	(b) The commission may petition the board to establish a watershed management 
5.22 	district if deficiencies identified by the board are not corrected within two years. The 
5.23 	board may, after public notice and hearing, declare a watershed management organization 
5.24 	nonimplementing and initiate proceedings for establishment of a watershed district.

5.25 	Sec. 6. Minnesota Statutes 2006, section 103D.205, subdivision 3, is amended to read:
5.26 		Subd. 3.Signatures. The establishment petition must be signed by one or more 
5.27 	of the following groups:
5.28 	(1) one-half or more of the counties within the proposed watershed district;
5.29 	(2) counties having 50 percent or more of the area within the proposed watershed 
5.30 	district;
5.31 	(3) a majority of the cities within the proposed watershed district; or
5.32 	(4) 50 or more resident owners residing in the proposed watershed district, excluding 
5.33 	resident owners within the corporate limits of a city if the city has signed the petition.; or
5.34 	(5) the Minnesota River Basin Commission under section 103B.179, subdivision 2.

6.1 	Sec. 7. Minnesota Statutes 2006, section 275.066, is amended to read:
6.2 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
6.3 	For the purposes of property taxation and property tax state aids, the term "special 
6.4 	taxing districts" includes the following entities:
6.5 	(1) watershed districts under chapter 103D;
6.6 	(2) sanitary districts under sections 115.18 to 115.37; 
6.7 	(3) regional sanitary sewer districts under sections 115.61 to 115.67; 
6.8 	(4) regional public library districts under section 134.201; 
6.9 	(5) park districts under chapter 398;
6.10 	(6) regional railroad authorities under chapter 398A;
6.11 	(7) hospital districts under sections 447.31 to 447.38; 
6.12 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15; 
6.13 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37; 
6.14 	(10) regional development commissions under sections 462.381 to 462.398; 
6.15 	(11) housing and redevelopment authorities under sections 469.001 to 469.047; 
6.16 	(12) port authorities under sections 469.048 to 469.068; 
6.17 	(13) economic development authorities under sections 469.090 to 469.1081; 
6.18 	(14) Metropolitan Council under sections 473.123 to 473.549; 
6.19 	(15) Metropolitan Airports Commission under sections 473.601 to 473.680; 
6.20 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716; 
6.21 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
6.22 	chapter 437, section 1;
6.23 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 
6.24 	6;
6.25 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
6.26 	sections 1 to 6;
6.27 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
6.28 	5, section 39;
6.29 	(21) Middle Mississippi River Watershed Management Organization under sections 
6.30 	103B.211 and 103B.241; 
6.31 	(22) emergency medical services special taxing districts under section 144F.01; 
6.32 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
6.33 	103B.251; 
6.34 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
6.35 	under Laws 2003, First Special Session chapter 21, article 4, section 12; and
6.36 	(25) the Minnesota River Basin Commission under section 103B.177; and
7.1 	(26) any other political subdivision of the state of Minnesota, excluding counties, 
7.2 	school districts, cities, and towns, that has the power to adopt and certify a property tax 
7.3 	levy to the county auditor, as determined by the commissioner of revenue.

7.4 	Sec. 8. APPROPRIATION.
 7.5 	$....... is appropriated from ... in fiscal year .... to .... as a onetime appropriation 
7.6 	for grants to the Minnesota River Basin Commission to assist in development of the 
7.7 	basin plan goals, objectives, priorities, and outcomes under Minnesota Statutes, sections 
7.8 	103B.177 to 103B.179. This appropriation is available until expended.
7.9 	$....... is appropriated from ... in fiscal year .... and $....... is appropriated in fiscal 
7.10 	year .... to the Board of Water and Soil Resources for increased staffing and capacity to 
7.11 	support the watershed management effort of this act.