1.1.................... moves to amend H.F. No. 1734 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [103A.212] BASIN WATERSHED MANAGEMENT POLICY.
1.4    The quality of life of every Minnesotan depends on water. Minnesota's rivers, lakes,
1.5streams, wetlands, and groundwater provide a foundation for the state's recreational,
1.6municipal, commercial, industrial, agricultural, environmental, aesthetic, and economic
1.7well-being. The legislature finds that it is in the public interest to manage water resources
1.8from the perspective of watersheds and river basins to achieve protection, preservation,
1.9enhancement, and restoration of the state's valuable water resources.

1.10    Sec. 2. Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:
1.11    Subd. 9. Powers and duties. In addition to the powers and duties prescribed
1.12elsewhere, the board shall:
1.13(1) coordinate the water and soil resources planning activities of counties, soil and
1.14water conservation districts, watershed districts, watershed management organizations,
1.15and any other local units of government through its various authorities for approval of
1.16local 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
1.18with the Environmental Quality Board, and between state and local units of government,
1.19in order to make the expertise and resources of state agencies involved in water and soil
1.20resources management available to the local units of government to the greatest extent
1.21possible;
1.22(3) coordinate state and local interests with respect to the study in southwestern
1.23Minnesota under United States Code, title 16, section 1009;
1.24(4) develop information and education programs designed to increase awareness
1.25of local water and soil resources problems and awareness of opportunities for local
1.26government involvement in preventing or solving them;
2.1(5) provide a forum for the discussion of local issues and opportunities relating
2.2to water and soil resources management;
2.3(6) adopt an annual budget and work program that integrate the various functions
2.4and responsibilities assigned to it by law; and
2.5(7) report to the governor and the legislature by October 15 of each even-numbered
2.6year with an assessment of board programs and recommendations for any program
2.7changes and board membership changes necessary to improve state and local efforts in
2.8water and soil resources management; and
2.9(8) report to the legislature by January 15 of each even-numbered year on the
2.10progress being made to further the basin watershed management policy established under
2.11section 103A.212.
2.12The board may accept grants, gifts, donations, or contributions in money, services,
2.13materials, or otherwise from the United States, a state agency, or other source to achieve
2.14an authorized purpose. The board may enter into a contract or agreement necessary or
2.15appropriate to accomplish the transfer. The board may receive and expend money to
2.16acquire conservation easements, as defined in chapter 84C, on behalf of the state and
2.17federal government consistent with the Camp Ripley's Army Compatible Use Buffer
2.18Project.
2.19Any money received is hereby appropriated and dedicated for the purpose for
2.20which it is granted.

2.21    Sec. 3. Minnesota Statutes 2008, section 103B.102, subdivision 2, is amended to read:
2.22    Subd. 2. Definitions. For the purposes of this section, "local water management
2.23entities" means basin boards, watershed districts, soil and water conservation districts,
2.24metropolitan water management organizations, and counties operating separately or
2.25jointly in their role as local water management authorities under chapter 103B, 103C,
2.26103D, or 103G and chapter 114D.

2.27    Sec. 4. [103B.176] DEFINITIONS.
2.28    (a) For the purposes of sections 103B.176 to 103B.18, the following terms have
2.29the meanings given.
2.30    (b) "Basin board" means a basin board established under section 103B.178 or
2.31103B.179.
2.32    (c) "Local water management organizations" means watershed districts, soil
2.33and water conservation districts, metropolitan water management organizations, lake
3.1improvement districts, lake conservation districts, and counties under chapters 103B,
3.2103C, 103D, and 114.
3.3    (d) "Watershed management entity" means: (1) a watershed district under chapter
3.4103D; (2) a watershed management organization under section 103B.211; or (3) a formally
3.5organized joint powers organization of counties, cities, soil and water conservation
3.6districts, and watershed districts located outside the seven-county metropolitan area as
3.7defined under section 473.121, subdivision 4, encompassing one or more of the state's
3.8major watersheds as determined by the Board of Water and Soil Resources. A lake
3.9improvement district is not a watershed management entity.

3.10    Sec. 5. [103B.177] BASIN WATERSHED MANAGEMENT.
3.11    Subdivision 1. Basin management purposes. The purposes of the basin watershed
3.12management approach are to:
3.13    (1) protect, preserve, and use natural surface water and groundwater storage and
3.14retention systems;
3.15    (2) maximize benefits of public capital expenditures needed to correct flooding and
3.16water quality problems;
3.17    (3) identify and plan for means to effectively protect and improve surface water
3.18and groundwater quality;
3.19    (4) establish more uniform policies, goals, and objectives for surface water and
3.20groundwater management;
3.21    (5) prevent erosion of soil and associated pollutants into surface water systems;
3.22    (6) promote groundwater recharge;
3.23    (7) protect and enhance fish and wildlife habitat;
3.24    (8) secure other benefits associated with the sustainable use and management of
3.25surface water and groundwater resources;
3.26    (9) promote coordination and cooperation among local water management
3.27organizations;
3.28    (10) work with other public agencies and citizen volunteers collecting scientific data
3.29used to identify and restore impaired waters; and
3.30    (11) facilitate resolution of water resources conflicts.
3.31    Subd. 2. Basin boards. (a) Basin boards may be established in each of the state's
3.32major river basins. Basin boards shall be established by petition under section 103B.178,
3.33in the following major river basins:
3.34    (1) Rainy River Basin;
3.35    (2) Great Lakes Basin;
4.1    (3) St. Croix River Basin;
4.2    (4) Middle Mississippi River Basin;
4.3    (5) Lower Mississippi-Cedar Rivers Basin;
4.4    (6) Missouri-Des Moines Rivers Basin;
4.5    (7) Upper Mississippi River Basin; and
4.6    (8) Minnesota River Basin.
4.7    (b) The board for the Red River of the North Basin shall be the Red River Watershed
4.8Management Board established under Laws 1976, chapter 162. The Red River Watershed
4.9Management Board may reorganize and establish itself under the petition for amendment
4.10process under section 103B.179. Until the Red River Watershed Management Board
4.11is established under section 103B.179, the board shall continue to operate under Laws
4.121976, chapter 162.
4.13    Subd. 3. Membership; organization. (a) Membership of the basin boards under
4.14subdivision 2, paragraph (a), consists of one member from each of the existing watershed
4.15management entities within the basin and one member from each of the major watershed
4.16units where there is no watershed management entity. The governing body for each
4.17watershed management entity shall appoint one member. If no watershed management
4.18entity exists, the counties and soil and water conservation districts located wholly or
4.19partially within, or any watershed district located partially within, each major watershed
4.20unit shall jointly appoint one member that resides in the major watershed unit. A member
4.21of a basin board must be a county commissioner, soil and water conservation district
4.22supervisor, a watershed district manager, or an elected city official.
4.23    (b) Each basin board established by petition under section 103B.178, shall annually
4.24elect from among its members a chair, vice-chair, and secretary-treasurer who shall serve
4.25for concurrent three-year terms. The chair shall preside over all meetings of the basin
4.26board and may call special meetings at reasonable times and with adequate notice, when
4.27necessary. The vice-chair shall preside over the meetings of the basin board in the absence
4.28of the chair. The secretary-treasurer or the designee of the secretary-treasurer shall keep a
4.29record of all proceedings of the basin board. The secretary-treasurer shall provide for the
4.30proper receipt and disbursement of funds.
4.31    Subd. 4. Advisory committee. (a) A basin board must appoint an advisory
4.32committee to advise and assist the basin board on all matters affecting the interests of the
4.33basin and make recommendations to the basin board on all projects and improvements
4.34proposed by the basin board.
4.35    (b) The advisory committee consists of at least six members. The members of the
4.36advisory committee shall be from the advisory committees of the watershed management
5.1entities within the basin. If no watershed management entity exists the advisory committee
5.2member shall be appointed in the same manner as the basin membership under subdivision
5.33. The members must be residents of the basin and shall serve two-year terms.
5.4    Subd. 5. Basin management plans. Within 24 months of establishment under
5.5section 103B.178 or 103B.179, a basin board shall adopt a basin management plan as
5.6approved by the Board of Water and Soil Resources.
5.7    Subd. 6. Watershed management entity plans. Within 120 days of basin board
5.8establishment under section 103B.178 or 103B.179, all watershed management entity
5.9plans and local water plans developed under sections 103B.231, 103B.235, 103B.255,
5.10103B.311, 103B.501, 103B.601, 103B.651, 103C.331, subdivision 11, and 103D.401,
5.11shall be submitted to the basin board for review and comment on the consistency
5.12of the proposed plan with the basin management plan. A county or soil and water
5.13conservation district may use the watershed management entity plan to meet the local
5.14water management plan requirements of sections 103B.311 and 103C.331, subdivision 11.
5.15    Subd. 7. Taxing and other authority. (a) For taxes levied the year following
5.16the establishment of the basin board and thereafter, a basin board with taxing authority
5.17under paragraph (b) or a county with taxing authority under paragraph (c) may levy an ad
5.18valorem tax not to exceed 0.048 percent of the taxable market value of all property within
5.19the basin, or $1,000,000, whichever is less. A levy under this subdivision is in addition to
5.20any other levy authorized by statute. The levy shall be allocated as follows:
5.21(1) one-half of the levy shall be credited to the general fund of the basin board and
5.22shall be used: (i) to develop and implement the basin board's management plan; and (ii)
5.23for water resource projects and programs of benefit to the basin. The basin board must
5.24adopt criteria for application and allocation of these funds by the basin board; and
5.25(2) the remaining one-half of the levy shall be credited to the watershed management
5.26fund of the watershed management entity for development, construction, maintenance,
5.27implementation, and operation of projects and programs of benefit to the watershed and
5.28basin for the restoration, enhancement, preservation, and protection of water and related
5.29land resources. If no watershed management entity exists for a major watershed unit,
5.30the levy under this clause shall be credited to the county and held by the county until a
5.31watershed management entity is established, at which time the funds shall be transferred
5.32for use by the watershed management entity.
5.33    (b) A basin board may establish taxing authority under this section if the majority of
5.34the members of the basin board are elected officials at the time the levy is established.
5.35A basin board with taxing authority under this section is a special taxing district under
5.36section 275.066.
6.1    (c) A county may levy a tax under paragraph (a) on behalf of a basin board when a
6.2basin board does not have taxing authority under paragraph (b). A county levying under
6.3this section is a special taxing district under section 275.066.
6.4    (d) A basin board may hire or contract for goods and services to carry out its
6.5responsibilities under this section.
6.6    (e) A basin board has the authority to participate in interstate and international basin
6.7organizations that are geographically and hydrologically connected with the basin.
6.8    (f) A basin board is eligible for funding from the clean water fund under section
6.9114D.50 provided the basin board meets the requirements established under section
6.10103B.18, subdivision 1.
6.11(g) A basin board may enter into joint powers agreements under section 471.59.

6.12    Sec. 6. [103B.178] ESTABLISHMENT PETITION.
6.13    Subdivision 1. Filing. To establish a basin board as permitted under section
6.14103B.177, an establishment petition must be filed with the Board of Water and Soil
6.15Resources.
6.16    Subd. 2. Requirements. The establishment petition must state:
6.17(1) the name of the proposed basin board;
6.18(2) the major river basin under section 103B.177 to be represented by the board,
6.19including a map and description of the property to be included;
6.20(3) the membership structure of the board meeting the requirements under section
6.21103B.177, subdivision 3; and
6.22(4) whether the board intends to meet the elected official requirements for
6.23establishing taxing authority under section 103B.177, subdivision 7.
6.24    Subd. 3. Signatures. The establishment petition must be signed by one or more
6.25of the following groups:
6.26(1) one-half or more of the counties, soil and water conservation districts, or
6.27watershed districts located wholly or partially within the basin;
6.28(2) counties, soil and water conservation districts, or watershed districts collectively
6.29having 50 percent or more of the area within the basin;
6.30(3) cities that represent the majority of city residents within the basin; or
6.31(4) 50 or more resident owners residing in a watershed from at least 25 percent of
6.32the watersheds within the basin, excluding resident owners within the corporate limits of
6.33a city if the city has signed the petition.
7.1    Subd. 4. Filing establishment petitions. (a) The petitioners must file a copy of
7.2the original establishment petition with a signed statement of delivery or receipt with the
7.3auditors 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 if
7.5the petitioners are resident owners from the tax records. The tax records are prima facie
7.6evidence of ownership. The auditor must certify the number of petitioners that are resident
7.7owners 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
7.9Resources shall acknowledge that an establishment petition has been received and prepare
7.10a preliminary river basin map and a preliminary report about the basin.
7.11    Subd. 5. Similar and duplicate establishment petitions. Similar and duplicate
7.12establishment petitions for the same proposed basin board may be filed and regarded as
7.13one establishment petition. All establishment petitions filed before the establishment
7.14hearing must be considered by the Board of Water and Soil Resources as part of the
7.15original petition.
7.16    Subd. 6. Defective establishment petition. An establishment petition that has the
7.17requisite number of petitioner signatures may not be dismissed because of defects in the
7.18establishment petition. The Board of Water and Soil Resources must allow petitioners to
7.19amend a defective establishment petition at any time before the end of the establishment
7.20hearing.
7.21    Subd. 7. Withdrawal of petitioners. After an establishment petition has been filed,
7.22a petitioner may not withdraw from the establishment petition unless the withdrawing
7.23petitioner obtains the written consent of all other petitioners and files the written consent
7.24with the Board of Water and Soil Resources.
7.25    Subd. 8. Hearings; notice. (a) After receiving an establishment petition, the
7.26Board of Water and Soil Resources must determine whether the establishment petition
7.27has the requisite number of petitioner signatures. If the establishment petition does
7.28not have the requisite number of petitioners, the board must dismiss the establishment
7.29petition and return it to the petitioners with an explanation of why the petition was
7.30dismissed. If the board determines that an establishment petition has the requisite number
7.31of petitioner signatures, the board must, by order, set a time and location for hearings on
7.32the establishment petition within 35 days after its determination. The hearings must be
7.33held within the limits of the basin to be established unless the board determines a suitable
7.34place is not located within the basin and selects a place within the limits of a county that
7.35would be affected by the proposed basin board.
8.1(b) The Board of Water and Soil Resources must give notice of the establishment
8.2hearings by publication in a legal newspaper that is published in counties affected by the
8.3proposed basin board. The last publication must occur at least ten days before the last
8.4establishment hearing. The board must give notice of the establishment hearings to the
8.5commissioners of natural resources, agriculture, health, and the Pollution Control Agency,
8.6the auditors of counties, and the chief executive officials of municipalities affected by the
8.7proposed basin board. The notice must include:
8.8(1) a statement that an establishment petition has been filed with the board and
8.9auditors 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
8.12by 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
8.15board 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
8.17affected by the proposed basin board an opportunity to make oral and written statements at
8.18the establishment hearings. The board may continue the establishment hearings.
8.19    Subd. 9. Establishment order. (a) If the Board of Water and Soil Resources
8.20determines after the establishment hearings that the establishment of the proposed basin
8.21board would benefit the public welfare and public interest, the board must, by order,
8.22establish 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
8.29and 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
8.31basin board and to the commissioners of natural resources, agriculture, health, and the
8.32Pollution 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
8.35establishing the basin board is filed with the secretary of state until the basin board is
8.36terminated under section 103B.179.

9.1    Sec. 7. [103B.179] AMENDMENTS AND TERMINATION.
9.2    Subdivision 1. Amendment process. An establishment order for a basin board may
9.3be amended as provided in this section. A proceeding to amend an establishment order
9.4must be initiated by a petition to the Board of Water and Soil Resources requesting the
9.5amendment. Amendments may include changes to the boundaries of the area represented
9.6by the basin board, withdrawal of a portion of the area represented, additions to the area
9.7represented, or consolidation of areas represented. The Red River Watershed Management
9.8Board may reorganize and establish itself under this section as provided under section
9.9103B.177.
9.10    Subd. 2. Petition. (a) A petition for an amendment to an establishment order for a
9.11basin 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
9.17changes.
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
9.20watershed districts located wholly or partially within the basin;
9.21(2) counties, soil and water conservation districts, or watershed districts collectively
9.22having 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
9.25the watersheds within the basin, excluding resident owners within the corporate limits of a
9.26city 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
9.29location for hearings and give notice of the hearings in the same manner as establishment
9.30hearings. If a petition for an amendment involves a common boundary of two or more
9.31areas represented by established basin boards, the Board of Water and Soil Resources
9.32must determine the basin where the hearings will be held.
9.33    Subd. 4. Establishment of amendment. (a) After the hearings on the petition
9.34for an amendment, the Board of Water and Soil Resources must establish the proposed
9.35amendment, by order, if the board determines that establishment of the proposed
10.1amendment would benefit the public welfare and public interest and the proposed
10.2amendment 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;
10.5and
10.6(2) the boundaries of the areas represented by the basin boards affected by the
10.7amendment.
10.8(c) The board must file a certified copy of the findings and order establishing the
10.9amendment with the secretary of state and, at the same time, mail a copy of the order to
10.10the auditors of counties affected by the change, the commissioners of natural resources,
10.11agriculture, health, and the Pollution Control Agency, and the members of basin boards
10.12affected by the change. The amendment is effective the day the certified order establishing
10.13the amendment is filed with the secretary of state.
10.14    Subd. 5. Termination process. A basin board may be terminated under this
10.15section. Proceedings for the termination of a basin board may only be initiated by
10.16filing a termination petition with the Board of Water and Soil Resources. The board
10.17may not accept a termination petition within five years from the date of a basin board's
10.18establishment. The board may not make determinations or accept termination petitions for
10.19basin boards more than once in five years.
10.20    Subd. 6. Termination petition; certification. (a) A termination petition must be
10.21signed by at least 25 percent of the resident owners from each of at least 50 percent of
10.22the watersheds in the area represented by the basin board. The termination petition must
10.23state that the existence of the basin board does not benefit the public welfare and public
10.24interest and the basin board is not needed to accomplish the purposes of this chapter. The
10.25petitioners must file a copy of the termination petition with the auditors of the counties
10.26affected by the basin board. The original termination petition with a statement signed for
10.27delivery or receipt of each of the termination petitions submitted to the auditors of counties
10.28affected by the basin board must be filed with the Board of Water and Soil Resources.
10.29(b) An auditor who receives a termination petition must determine from the tax
10.30records whether the petitioners are resident owners within the area represented by the
10.31basin board. The auditor must certify the number of petitioners that are resident owners
10.32and file the certification with the Board of Water and Soil Resources.
10.33    Subd. 7. Termination hearing; notice. (a) When the Board of Water and Soil
10.34Resources determines a termination petition has been filed that meets the requirements of
10.35this section, the board must, by order, set a time within 35 days after its determination and
10.36a location within the area represented by the basin board for a termination hearing.
11.1(b) The board must give notice of the termination hearing by publication in a legal
11.2newspaper that is published in counties affected by the basin board. The last publication
11.3must occur at least ten days before the termination hearing.
11.4(c) The board must give notice of the termination hearing by mail to the auditors of
11.5counties and to the chief executive officials of municipalities affected by the basin board.
11.6(d) The notice must include:
11.7(1) a statement that a termination petition has been filed with the board and auditors
11.8of the counties affected by the basin board;
11.9(2) a general description of why the basin board is to be terminated;
11.10(3) a general description of the property within the area represented by the basin
11.11board;
11.12(4) the date, time, and location of the hearing; and
11.13(5) a statement that all persons affected by or interested in the basin board may
11.14attend and give statements at the termination hearing.
11.15(e) The Board of Water and Soil Resources must allow all persons affected by or
11.16interested in the basin board to make oral and written statements at the termination
11.17hearing. The board may continue the termination hearing.
11.18    Subd. 8. Termination order. If, after the termination hearing, the Board of Water
11.19and Soil Resources determines that the existence of the basin board does not benefit the
11.20public welfare and public interest and the basin board is not needed to accomplish the
11.21purpose of this chapter, the board must issue a termination order. The termination order
11.22must include findings that support termination of the basin board and a statement that the
11.23basin board is terminated. The board must file a certified copy of the termination order
11.24with the secretary of state. A basin board ceases to be a political subdivision and ceases to
11.25exist when a termination order for the basin board is filed with the secretary of state.

11.26    Sec. 8. [103B.18] STANDARDS AND OVERSIGHT.
11.27    Subdivision 1. Standards. A basin board may, in its basin management plan, adopt
11.28additional performance and operational standards for its member watershed management
11.29entities. A basin board, water management entity, or other local water management
11.30organization is not eligible for funds from the clean water legacy account under section
11.31114D.45 or from the clean water fund under section 114D.50 unless:
11.32    (1) it is formally organized;
11.33    (2) has a water plan approved by the Board of Water and Soil Resources;
11.34    (3) there is cooperation, coordination, and implementation on a watershed basin
11.35basis; and
12.1    (4) nonstate matching funds are available.
12.2    Subd. 2. Corrective actions. (a) In addition to any other powers granted to the
12.3Board of Water and Soil Resources, the Board of Water and Soil Resources has the
12.4authority to intervene for the purpose of resolving disputes between a basin board and its
12.5member watershed management entities and between watershed management entities.
12.6    (b) A basin board may petition the Board of Water and Soil Resources to establish a
12.7watershed district if deficiencies identified by the Board of Water and Soil Resources are
12.8not corrected within two years. The Board of Water and Soil Resources may, after public
12.9notice and hearing, declare a watershed management organization non-implementing and
12.10initiate proceedings for establishment of a watershed district.

12.11    Sec. 9. Minnesota Statutes 2008, section 103B.231, subdivision 4, is amended to read:
12.12    Subd. 4. General standards. (a) The watershed management plan must specify the
12.13period covered by the plan and must extend at least five years but no more than ten years
12.14from the date the board approves the plan. Plans that contain revision dates inconsistent
12.15with this section must comply with that date, provided it is not more than ten years beyond
12.16the date of board approval.
12.17(b) The plan must be reviewed for consistency with an adopted county groundwater
12.18plan, and revised to the degree necessary to become compliant with the groundwater plan
12.19no later than two years after adoption by the county. A one-year extension may be granted
12.20by the board. Upon the request of a watershed management organization, the county shall
12.21provide a written statement that:
12.22(1) identifies any substantial inconsistencies between the watershed plan and the
12.23groundwater plan and any substantial adverse effects of the watershed plan on the
12.24groundwater plan; and
12.25(2) evaluates, estimates the cost of, and recommends alternatives for amending the
12.26watershed plan to rectify any substantial inconsistencies and adverse effects.
12.27(c) The plan shall contain the elements required by subdivision 6. Each element shall
12.28be set out in the degree of detail and prescription necessary to accomplish the purposes
12.29of sections 103B.205 to 103B.255, considering the character of existing and anticipated
12.30physical and hydrogeologic conditions, land use, and development and the severity of
12.31existing and anticipated water management problems in the watershed.
12.32(d) Existing plans of a watershed management organization shall remain in force and
12.33effect until amended or superseded by plans adopted under sections 103B.205 to 103B.255.
12.34(e) Watershed management organizations shall coordinate their planning activities
12.35with basin boards, contiguous watershed management organizations and counties
13.1conducting water planning and implementation under sections 103B.101 and 103B.301
13.2to 103B.355.
13.3(f) The plan must be consistent with the basin watershed management policy
13.4established in section 103A.212.

13.5    Sec. 10. Minnesota Statutes 2008, section 103B.245, subdivision 1, is amended to read:
13.6    Subdivision 1. Watershed management tax district. (a) Any local government
13.7unit planning for water management under sections 103B.177, 103B.178, 103B.231 and,
13.8or 103B.235 may establish a watershed management tax district in the territory within
13.9the watershed, for the purpose of paying the costs of the planning required under sections
13.10103B.177, 103B.231 and, or 103B.235.
13.11(b) Any local government unit which has part of its territory within a watershed
13.12for which a plan has been adopted in accordance with section 103B.177, 103B.178, or
13.13103B.231
and which has a local water management plan adopted in accordance with
13.14section 103B.177, 103B.178, or 103B.235 may establish a watershed management tax
13.15district in the territory within the watershed or a subwatershed unit in the watershed,
13.16for the purpose of paying capital costs of the water management facilities described in
13.17the capital improvement program of the plans and for the purpose of paying for normal
13.18and routine maintenance of the facilities.
13.19(c) A county or counties required by section 103B.231, subdivision 3, to prepare,
13.20adopt, and implement a watershed plan shall apportion the costs of planning, capital
13.21improvements, and maintenance proportionate to benefits. The county may apportion the
13.22costs among the subwatershed units in the watershed, or among the statutory and home
13.23rule charter cities and towns having territory in the watershed, and for this purpose may
13.24establish more than one watershed management tax district in the watershed.
13.25(d) Notification of new watershed management tax districts established under this
13.26subdivision must be made to the county auditor by July 1 in order to be effective for
13.27taxes payable in the following year.

13.28    Sec. 11. Minnesota Statutes 2008, section 103B.3369, subdivision 2, is amended to
13.29read:
13.30    Subd. 2. Establishment. A local water resources protection and management
13.31program is established. The board may provide financial assistance to local units of
13.32government or to basin boards as defined in section 103B.176, paragraph (b), for activities
13.33that protect or manage water and related land quality. The activities include planning,
13.34zoning, official controls, and other activities to implement local water management plans.

14.1    Sec. 12. Minnesota Statutes 2009 Supplement, section 103B.3369, subdivision 5,
14.2is amended to read:
14.3    Subd. 5. Financial assistance. (a) A base grant may be awarded to a county that
14.4provides a match utilizing a water implementation tax or other local source. A water
14.5implementation tax that a county intends to use as a match to the base grant must be levied
14.6at a rate determined by the board. The minimum amount of the water implementation tax
14.7shall be a tax rate times the adjusted net tax capacity of the county for the preceding year.
14.8The rate shall be the rate, rounded to the nearest .001 of a percent, that, when applied to
14.9the adjusted net tax capacity for all counties, raises the amount of $1,500,000. The base
14.10grant will be in an amount equal to $37,500 less the amount raised by the local match.
14.11If the amount necessary to implement the local water plan for the county is less than
14.12$37,500, the amount of the base grant shall be the amount that, when added to the match
14.13amount, equals the amount required to implement the plan. For counties where the tax
14.14rate generates an amount equal to or greater than $18,750, the base grant shall be in an
14.15amount equal to $18,750.
14.16(b) A base grant may be awarded to a basin board as defined in section 103B.176,
14.17paragraph (b), for the development and implementation of a basin management plan under
14.18section 103B.177, subdivision 5.

14.19    Sec. 13. Minnesota Statutes 2008, section 103D.205, subdivision 3, is amended to read:
14.20    Subd. 3. Signatures. The establishment petition must be signed by one or more
14.21of the following groups:
14.22(1) one-half or more of the counties within the proposed watershed district;
14.23(2) counties having 50 percent or more of the area within the proposed watershed
14.24district;
14.25(3) a majority of the cities within the proposed watershed district; or
14.26(4) 50 or more resident owners residing in the proposed watershed district, excluding
14.27resident owners within the corporate limits of a city if the city has signed the petition; or
14.28(5) a basin board as defined under section 103B.176, paragraph (b).

14.29    Sec. 14. Minnesota Statutes 2008, section 103D.401, subdivision 1, is amended to read:
14.30    Subdivision 1. Contents. (a) The managers must adopt a watershed management
14.31plan for any or all of the purposes for which a watershed district may be established.
14.32The watershed management plan must give a narrative description of existing water and
14.33water-related problems within the watershed district, possible solutions to the problems,
14.34and the general objectives of the watershed district. The watershed management plan
15.1must also conform closely with watershed management plan guidelines as adopted and
15.2amended from time to time by the Board of Water and Soil Resources and be consistent
15.3with the basin watershed management policy established in section 103A.212.
15.4(b) The watershed management plan may include a separate section on proposed
15.5projects. If the watershed district is within the metropolitan area, the separate section of
15.6proposed projects or petitions for projects to be undertaken according to the watershed
15.7management plan is a comprehensive plan of the watershed district for purposes of review
15.8by the Metropolitan Council under section 473.165.

15.9    Sec. 15. Minnesota Statutes 2009 Supplement, section 275.066, is amended to read:
15.10275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
15.11    For the purposes of property taxation and property tax state aids, the term "special
15.12taxing districts" includes the following entities:
15.13    (1) watershed districts under chapter 103D;
15.14    (2) sanitary districts under sections 115.18 to 115.37;
15.15    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
15.16    (4) regional public library districts under section 134.201;
15.17    (5) park districts under chapter 398;
15.18    (6) regional railroad authorities under chapter 398A;
15.19    (7) hospital districts under sections 447.31 to 447.38;
15.20    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
15.21    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
15.22    (10) regional development commissions under sections 462.381 to 462.398;
15.23    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
15.24    (12) port authorities under sections 469.048 to 469.068;
15.25    (13) economic development authorities under sections 469.090 to 469.1081;
15.26    (14) Metropolitan Council under sections 473.123 to 473.549;
15.27    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
15.28    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
15.29    (17) Morrison County Rural Development Financing Authority under Laws 1982,
15.30chapter 437, section 1;
15.31    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section
15.326;
15.33    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
15.34sections 1 to 6;
16.1    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
16.25, section 39;
16.3    (21) Middle Mississippi River Watershed Management Organization under sections
16.4103B.211 and 103B.241;
16.5    (22) emergency medical services special taxing districts under section 144F.01;
16.6    (23) a county levying under the authority of section 103B.241, 103B.245, or
16.7103B.251 ;
16.8    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
16.9under Laws 2003, First Special Session chapter 21, article 4, section 12;
16.10    (25) an airport authority created under section 360.0426; and
16.11    (26) a basin board or county under section 103B.177; and
16.12(27) any other political subdivision of the state of Minnesota, excluding counties,
16.13school districts, cities, and towns, that has the power to adopt and certify a property tax
16.14levy to the county auditor, as determined by the commissioner of revenue. "
16.15Delete the title and insert:
16.16"A bill for an act
16.17relating to environment; authorizing establishment of basin boards; authorizing
16.18taxing authority;amending Minnesota Statutes 2008, sections 103B.101,
16.19subdivision 9; 103B.102, subdivision 2; 103B.231, subdivision 4; 103B.245,
16.20subdivision 1; 103B.3369, subdivision 2; 103D.205, subdivision 3; 103D.401,
16.21subdivision 1; Minnesota Statutes 2009 Supplement, sections 103B.3369,
16.22subdivision 5; 275.066; proposing coding for new law in Minnesota Statutes,
16.23chapters 103A; 103B."