1.1    .................... moves to amend H. F. No. 2536 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 2007 Supplement, section 103B.102, subdivision 2, is
1.11amended to read:
1.12    Subd. 2. Definitions. For the purposes of this section, "local water management
1.13entities" means basin boards, watershed districts, soil and water conservation districts,
1.14metropolitan water management organizations, and counties operating separately or
1.15jointly in their role as local water management authorities under chapter 103B, 103C,
1.16103D, or 103G and chapter 114D.

1.17    Sec. 3. [103B.176] DEFINITIONS.
1.18    (a) For the purposes of sections 103B.175 to 103B.179, the following terms have
1.19the meanings given.
1.20    (b) "Basin board" means a formally organized joint powers organization representing
1.21the watershed management organizations defined in paragraph (d) established along
1.22boundaries of the nine major river basins listed in section 103B.177, subdivision 2.
1.23    (c) "Local water management entities" means watershed districts, soil and water
1.24conservation districts, metropolitan water management organizations, lake improvement
2.1districts, lake conservation districts, and counties under chapters 103B, 103C, 103D,
2.2and 114.
2.3    (d) "Watershed management organization" means a watershed district under chapter
2.4103D; a watershed management organization under section 103B.211; or a formally
2.5organized joint powers organization of counties, cities, soil and water conservation
2.6districts, and watershed districts located outside the seven-county metropolitan area
2.7as defined under section 473.121, subdivision 4, encompassing one or more of the
2.8state's major watersheds. Lake improvement districts are not watershed management
2.9organizations.

2.10    Sec. 4. [103B.177] BASIN WATERSHED MANAGEMENT.
2.11    Subdivision 1. Basin management purpose. The purposes of basin watershed
2.12management are to:
2.13    (1) protect, preserve, and use natural surface and groundwater storage and retention
2.14systems;
2.15    (2) maximize benefits of public capital expenditures needed to correct flooding and
2.16water quality problems;
2.17    (3) identify and plan for means to effectively protect and improve surface and
2.18groundwater quality;
2.19    (4) establish more uniform policies, goals, and objectives for surface and
2.20groundwater 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
2.25surface and groundwater resources;
2.26    (9) promote coordination and cooperation among basin water management
2.27organizations;
2.28    (10) work with other public agencies and citizen volunteers collecting scientific data
2.29used to identify and restore impaired waters; and
2.30    (11) facilitate resolution of water resources conflicts.
2.31    Subd. 2. Basin boards. A basin board is established in each of the state's
2.32major river basins. A basin board's purpose is to coordinate basin water management
2.33activities, implement projects and programs of common benefit to the basin, and monitor
2.34performance of local water management entities. The major river basins are:
2.35    (1) Rainy River Basin;
3.1    (2) Great Lakes Basin;
3.2    (3) St. Croix River Basin;
3.3    (4) Middle Mississippi River Basin;
3.4    (5) Lower Mississippi-Cedar Rivers Basin;
3.5    (6) Missouri-Des Moines Rivers Basin;
3.6    (7) Upper Mississippi River Basin;
3.7    (8) Minnesota River Basin; and
3.8    (9) Red River of the North Basin.
3.9    Subd. 3. Membership; organization. Membership of the basin boards in
3.10subdivision 2, clauses (1) to (9), consists of one member from each of the existing
3.11watershed management organizations or from each of the major watershed units where
3.12there is no formally organized watershed management organization within the basin.
3.13The governing body for each watershed management organization shall appoint one
3.14member. If no watershed management organization exists, the counties and soil and water
3.15conservation districts located wholly or partially within each major watershed unit, or any
3.16watershed district located partially within, shall jointly appoint one member that resides in
3.17the major watershed unit. A member of a basin board must be a county commissioner,
3.18soil and water conservation district supervisor, a watershed district manager, or an elected
3.19city official.
3.20    (b) Each basin board shall annually elect from among its members a chair, vice-chair,
3.21and secretary-treasurer who shall serve for concurrent three-year terms. The chair shall
3.22preside over all meetings of the basin board and may call special meetings at reasonable
3.23times and with adequate notice, when necessary. The vice-chair shall preside over the
3.24meetings of the basin board in the absence of the chair. The secretary-treasurer or the
3.25designee of the secretary-treasurer shall keep a record of all proceedings of the basin board.
3.26The secretary-treasurer shall provide for the proper receipt and disbursement of funds.
3.27    (c) On or before January 1, 2010, each basin board shall submit to the Board of
3.28Water and Soil Resources for approval a basin board organization plan that details
3.29the basin board's membership, structure, and operating authority in order to meet the
3.30requirements of sections 103B.175 to 103B.179.
3.31    Subd. 4. Advisory committee. (a) A basin board must annually appoint an advisory
3.32committee to advise and assist the basin board on all matters affecting the interests of
3.33the basin and make recommendations to the basin board on all contemplated projects
3.34and improvements in the basin.
4.1    (b) The advisory committee consists of at least six members. Half of the members
4.2of the advisory committee members should be public officials from local units of
4.3government, the other half should be landowners within the basin. The members must
4.4be residents of the basin.
4.5    Subd. 5. Basin management plans. On or before January 1, 2012, each basin board
4.6shall adopt a basin management plan and submit the plan to the Board of Water and Soil
4.7Resources for approval that builds on local water plans, establishes goals and measurable
4.8outcomes, and coordinates actions addressing the water quality, flood protection, land
4.9conservation, and related ecosystem needs of the basin.
4.10    Subd. 6. Watershed management organization plans. Effective January 1, 2010,
4.11all watershed management organization plans and local water plans developed under
4.12sections 103B.231, 103B.235, 103B.255, 103B.311, 103B.501, 103B.601, 103B.651,
4.13103C.331, subdivision 11, and 103D.401, shall be submitted to the appropriate basin
4.14board for review and comment on the consistency of the proposed plan with the basin
4.15management plan. A county or soil and water conservation district may use this plan to
4.16meet the local water management plan requirements of sections 103B.311 and 103C.331,
4.17subdivision 11.
4.18    Subd. 7. Taxing and other authority. (a) For taxes levied in 2009, payable in
4.192010 and thereafter, an established basin board with an approved basin management plan
4.20may levy an ad valorem tax not to exceed 0.048 percent of the taxable market value of
4.21all property within the basin, or $1,000,000, whichever is less. The levy is in addition
4.22to any other levy authorized by statute. One-half of the levy shall be credited to the
4.23watershed management fund of the watershed management organization for development,
4.24construction, maintenance, implementation, and operation of projects and programs of
4.25benefit to the watershed for the restoration, enhancement, preservation, and protection of
4.26water and related land resources. If no watershed management organization exists for a
4.27major watershed unit, that one-half levy amount shall be credited to the county and held
4.28by the county until a watershed management organization is established at which time
4.29the funds will be transferred for use by the watershed management organization. The
4.30remaining one-half of the levy shall be credited to the general fund of the basin board and
4.31shall be used for water resource projects and programs of benefit to the basin. The basin
4.32board must adopt criteria for application and allocation of these funds by the basin board.
4.33    (b) For purposes of this section, a basin board shall be considered a special taxing
4.34district under section 275.066.
5.1    (c) A basin board may hire or contract for resources to carry out its responsibilities
5.2under this section.
5.3    (d) A basin board has the authority to and must participate in interstate and
5.4international river basin organizations that are geographically and hydrologically
5.5connected with the river basin.

5.6    Sec. 5. [103B.178] WATERSHED MANAGEMENT ORGANIZATIONS.
5.7    Subdivision 1. Authority. (a) A party to a joint powers agreement under section
5.8471.59 to jointly or cooperatively manage or plan for the management of surface water
5.9and groundwater in a watershed under this section has, in addition to other authorities
5.10granted under section 471.59, the authority to prepare, adopt, and implement a plan for the
5.11watershed meeting the requirements of section 103B.231.
5.12    (b) Decisions by a joint powers board may not require more than a majority vote,
5.13except a decision on a capital improvement project, which may require no more than a
5.14two-thirds vote.
5.15    Subd. 2. Review of watershed boundaries. Before commencing planning, a
5.16watershed management organization established under this section and section 471.59,
5.17must submit a map delineating the boundaries of the watershed management organization
5.18to the Board of Water and Soil Resources for review and comment. The Board of Water
5.19and Soil Resources has 60 days to comment.

5.20    Sec. 6. [103B.179] ACCOUNTABILITY AND OVERSIGHT.
5.21    Subdivision 1. Standards. A basin board may in its basin management plan adopt
5.22additional performance and operational standards for its member watershed management
5.23organizations. Water management organizations or local water management entities are
5.24not eligible for Clean Water Legacy restoration and protection implementation grants or
5.25loans unless they are formally organized, have a water plan approved by the Board of
5.26Water and Soil Resources, and there is cooperation, coordination, and implementation on
5.27a watershed basis.
5.28    Subd. 2. Corrective actions. (a) In addition to any other powers granted to the
5.29Board of Water and Soil Resources, the Board of Water and Soil Resources has the
5.30authority to intervene for the purpose of resolving disputes between a basin board and its
5.31member watershed management organizations.
5.32    (b) A basin board may petition the Board of Water and Soil Resources to establish a
5.33watershed management district if deficiencies identified by the Board of Water and Soil
5.34Resources are not corrected within two years. The Board of Water and Soil Resources
6.1may, after public notice and hearing, declare a watershed management organization
6.2nonimplementing and initiate proceedings for establishment of a watershed district.

6.3    Sec. 7. Minnesota Statutes 2006, section 103D.205, subdivision 3, is amended to read:
6.4    Subd. 3. Signatures. The establishment petition must be signed by one or more
6.5of the following groups:
6.6    (1) one-half or more of the counties within the proposed watershed district;
6.7    (2) counties having 50 percent or more of the area within the proposed watershed
6.8district;
6.9    (3) a majority of the cities within the proposed watershed district; or
6.10    (4) 50 or more resident owners residing in the proposed watershed district, excluding
6.11resident owners within the corporate limits of a city if the city has signed the petition.; or
6.12    (5) a basin board under section 103B.179, subdivision 2.

6.13    Sec. 8. Minnesota Statutes 2006, section 275.066, is amended to read:
6.14275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
6.15    For the purposes of property taxation and property tax state aids, the term "special
6.16taxing districts" includes the following entities:
6.17    (1) watershed districts under chapter 103D;
6.18    (2) sanitary districts under sections 115.18 to 115.37;
6.19    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
6.20    (4) regional public library districts under section 134.201;
6.21    (5) park districts under chapter 398;
6.22    (6) regional railroad authorities under chapter 398A;
6.23    (7) hospital districts under sections 447.31 to 447.38;
6.24    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
6.25    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
6.26    (10) regional development commissions under sections 462.381 to 462.398;
6.27    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
6.28    (12) port authorities under sections 469.048 to 469.068;
6.29    (13) economic development authorities under sections 469.090 to 469.1081;
6.30    (14) Metropolitan Council under sections 473.123 to 473.549;
6.31    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
6.32    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
6.33    (17) Morrison County Rural Development Financing Authority under Laws 1982,
6.34chapter 437, section 1;
7.1    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section
7.26;
7.3    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
7.4sections 1 to 6;
7.5    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
7.65, section 39;
7.7    (21) Middle Mississippi River Watershed Management Organization under sections
7.8103B.211 and 103B.241;
7.9    (22) emergency medical services special taxing districts under section 144F.01;
7.10    (23) a county levying under the authority of section 103B.241, 103B.245, or
7.11103B.251 ;
7.12    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
7.13under Laws 2003, First Special Session chapter 21, article 4, section 12; and
7.14    (25) basin boards under section 103B.177; and
7.15    (26) any other political subdivision of the state of Minnesota, excluding counties,
7.16school districts, cities, and towns, that has the power to adopt and certify a property tax
7.17levy to the county auditor, as determined by the commissioner of revenue.

7.18    Sec. 9. APPROPRIATION.
7.19    $....... is appropriated from ... in fiscal year .... to .... as a onetime appropriation for
7.20grants to the basin boards to assist in development of the basin plan goals, objectives,
7.21priorities, and outcomes.
7.22    $....... is appropriated from ... in fiscal year .... and $....... is appropriated in fiscal
7.23year .... to the Board of Water and Soil Resources for increased staffing and capacity to
7.24support the watershed management effort of this act."
7.25Delete the title and insert:
7.27relating to the environment; authorizing establishment of basin boards;
7.28authorizing taxing authority; appropriating money;amending Minnesota Statutes
7.292006, sections 103D.205, subdivision 3; 275.066; Minnesota Statutes 2007
7.30Supplement, section 103B.102, subdivision 2; proposing coding for new law in
7.31Minnesota Statutes, chapters 103A; 103B."