SF3639 (Legislative Session 94 (2025-2026))

Counties authorization to require watershed districts to use sources other than watershed district tax levy to complete projects

AI Generated Summary

Purpose

  • This bill gives counties more control over how watershed districts fund their projects. It allows counties to prohibit watershed districts from levying taxes and to require the districts to use alternative funding sources. It also creates a process for counties to review and suggest changes to proposed project costs and funding.

Main Provisions

  • Section 1 (amendment to Minnesota Statutes 2024 section 103D.915 subdivision 2):
    • The county auditor adds the watershed district’s levy to the county’s tax levies and distributes it through the county treasurer in the same way as other taxes. The levy remains in addition to other county taxes, unless otherwise changed by this bill.
  • Section 2 (new funding alternatives in Minnesota Statutes 2024 section 103D.917):
    • Subdivision 1. A county may prohibit a watershed district from levying taxes authorized under this chapter and may require the watershed district to identify alternative funding sources to complete projects. If a watershed district spans more than one county, a prohibition by one county prevents all counties in that district from levying taxes under section 103D.915 subdivision 2.
    • Subdivision 2. A watershed district must comply with a county’s request to review proposed project costs and funding sources. A county may suggest modifications to the funding plan and cost-saving measures.

Significant Changes to Law

  • Introduces explicit county authority to prohibit watershed districts from levying taxes and to require alternative funding sources for projects.
  • Establishes that a prohibition by any one county in a multi-county watershed district effectively applies to all counties in that district.
  • Creates a formal process for counties to review and recommend changes to project funding and costs.

Implementation Implications

  • Funding for watershed district projects could shift away from tax levies toward alternative sources identified by counties.
  • Watershed districts may need to adjust project proposals to align with county feedback on costs and funding.
  • Tax collection mechanics may change only if counties exercise the new prohibition and funding-requirement options.

Relevant terms (to aid search and understanding) - watershed district - county - levy - tax levy - county auditor - county treasurer - settlement - funding alternatives - alternative funding sources - cost-saving measures - project funding - 103D.915 subdivision 2 - 103D.917 - multi-county watershed district - prohibition on levying taxes

Relevant Terms

  • watershed district
  • county
  • levy
  • tax levy
  • county auditor
  • county treasurer
  • settlement
  • funding alternatives
  • alternative funding sources
  • cost-saving measures
  • project funding
  • 103D.915 subdivision 2
  • 103D.917
  • multi-county watershed district
  • prohibition on levying taxes

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2026SenateActionIntroduction and first reading
February 19, 2026SenateActionReferred toEnvironment, Climate, and Legacy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 103D.915, subdivision 2 relating to the levy authority for watershed districts, clarifying that the levy amount is added to the county's other tax levies, and describing how taxes are collected and distributed.",
      "modified": [
        "Amends 103D.915, subdivision 2 so that the levy authorized by this section is in addition to other county taxes authorized by law; aligns levy collection and distribution with county tax processes."
      ]
    },
    "citation": "103D.915",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Adds 103D.917 FUNDING ALTERNATIVES with Subdivision 1: counties may require alternative funding sources and may prohibit watershed district taxes; cross-county effect in multi-county districts.",
        "Adds Subdivision 2: counties may review proposed costs and funding sources and may suggest modifications and cost-saving measures."
      ],
      "removed": [],
      "summary": "This bill adds a Funding Alternatives framework under Minnesota Statutes 103D.917, permitting counties to require alternative funding sources for watershed district projects, prohibiting tax levies under this chapter, and requiring county review of proposed costs and funding sources with potential modifications or cost-saving measures. It also notes that if a single county prohibits taxes, all counties in the watershed district are prohibited from levying taxes under 103D.915 subdivision 2.",
      "modified": []
    },
    "citation": "103D.917",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee
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