HF 3836

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/26/2018 04:33pm

A bill for an act
relating to natural resources; modifying conditions for agricultural best management
practice loans to include environmental service providers; modifying drainage law
to accelerate ditch buffer strip implementation; providing a runoff and sediment
delivery option for repair charges; amending Minnesota Statutes 2016, sections
17.117, subdivisions 1, 4, 11; 103E.005, by adding subdivisions; 103E.021,
subdivision 6; 103E.071; 103E.095; 103E.215, subdivision 5; 103E.351, subdivision
1; 103E.401, subdivision 4; 103E.411, subdivision 5; 103E.615, subdivisions 1,
2, 3, 5, 7; 103E.711, subdivision 1; 103E.715, subdivisions 4, 5; 103E.725;
103E.728, subdivisions 1, 2, by adding a subdivision; 103E.731, subdivisions 1,
2, 6; 103E.735, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ACCELERATED BUFFER STRIP IMPLEMENTATION

Section 1.

Minnesota Statutes 2016, section 17.117, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

The purpose of the agriculture best management practices loan
program is to provide low or no interest financing to farmers, agriculture supply businesses,
deleted text begin rural deleted text end landowners, and deleted text begin water-quality cooperatives deleted text end new text begin approved environmental service providers new text end
for the implementation of agriculture and other best management practices that reduce
environmental pollution.

Sec. 2.

Minnesota Statutes 2016, section 17.117, subdivision 4, is amended to read:

Subd. 4.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the program.

(c) "Agriculture supply business" means a person, partnership, joint venture, corporation,
limited liability company, association, firm, public service company, or cooperative that
provides materials, equipment, or services to farmers or agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this program
that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711, subdivision
3, and 103H.151, subdivision 2. Best management practices also means other practices,
techniques, and measures that have been demonstrated to the satisfaction of the
commissioner: (1) to prevent or reduce adverse environmental impacts by using the most
effective and practicable means of achieving environmental goals; or (2) to achieve drinking
water quality standards under chapter 103H or under Code of Federal Regulations, title 40,
parts 141 and 143, as amended.

(g) "Borrower" means a farmer, an agriculture supply business, deleted text begin or a rural deleted text end new text begin a new text end landowner new text begin ,
or an approved environmental service provider new text end applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee
of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at a
future date deleted text begin :
deleted text end

deleted text begin (1) deleted text end that has been approved and certified by the local government unit deleted text begin ; and
deleted text end

deleted text begin (2) for which a local lender has obligated itself to offer a loan deleted text end .

(j) "Comprehensive water management plan" means a state-approved and locally adopted
plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or
103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or materials
already provided as a result of implementing an approved eligible project.

new text begin (l) "Environmental service providers" means public or private organizations and
businesses approved by the commissioner that provide services or materials for
implementation of eligible best management practices for, or on behalf of, eligible individuals
or multiple individuals, including but not limited to drainage authorities, watershed districts,
municipalities, counties, water-quality cooperatives, or private businesses providing
environment-related services or materials, except as expressly limited in this section.
new text end

deleted text begin (l) deleted text end new text begin (m) new text end "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly participates
in physical labor or operations management of farming and files a Schedule F as part of
filing United States Internal Revenue Service Form 1040 or indicates farming as the primary
business activity under Schedule C, K, or S, or any other applicable report to the United
States Internal Revenue Service.

new text begin (n) "Landowner" means the owner of record of Minnesota real estate on which the project
is located.
new text end

deleted text begin (m) deleted text end new text begin (o) new text end "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

deleted text begin (n) deleted text end new text begin (p) new text end "Local government unit" means a county, soil and water conservation district, or
an organization formed for the joint exercise of powers under section 471.59 with the
authority to participate in the program.

deleted text begin (o) deleted text end new text begin (q) new text end "Local lender" means a local government unit as defined in paragraph deleted text begin (n) deleted text end new text begin (p) new text end , new text begin a
local municipality or county with taxing or special assessment authority, a watershed district,
a drainage authority, a township, new text end a state or federally chartered bank, a savings association,
a state or federal credit union, Agribank and its affiliated organizations, or a nonprofit
economic development organization or other financial lending institution approved by the
commissioner.

deleted text begin (p) deleted text end new text begin (r) new text end "Local revolving loan account" means the account held by a local government
unit and a local lender into which principal repayments from borrowers are deposited and
new loans are issued in accordance with the requirements of the program and lender
agreements.

deleted text begin (q) deleted text end new text begin (s) new text end "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

deleted text begin (r) deleted text end new text begin (t) new text end "Program" means the agriculture best management practices loan program in this
section.

deleted text begin (s) deleted text end new text begin (u) new text end "Project" means one or more components or activities located within Minnesota
that are required by the local government unit to be implemented for satisfactory completion
of an eligible best management practice.

deleted text begin (t) deleted text end deleted text begin "Rural landowner" means the owner of record of Minnesota real estate located in deleted text end deleted text begin an
area determined by the local government unit to be rural after consideration of local land
deleted text end deleted text begin use patterns, zoning regulations, jurisdictional boundaries, local community definitions,
deleted text end deleted text begin historical uses, and other pertinent local factors.
deleted text end

deleted text begin (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d),
except as expressly limited in this section.
deleted text end

Sec. 3.

Minnesota Statutes 2016, section 17.117, subdivision 11, is amended to read:

Subd. 11.

Loans issued to borrower.

(a) Local lenders may issue loans only for projects
that are approved and certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other local planning documents,
are in compliance with accepted practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or other applicable guidelines.

(b) The local lender may use any additional criteria considered necessary to determine
the eligibility of borrowers for loans.

(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:

(1) no loan to a borrower may exceed $200,000;

(2) no loan for a project may exceed $200,000; and

(3) no borrower shall, at any time, have multiple loans from this program with a total
outstanding loan balance of more than $200,000.

(d) The maximum term length for projects in this paragraph is ten years.

(e) Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of the local lender;

(2) be in accordance with published fee schedules issued by the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of loans offered by the local
lender.

(f) The interest rate assessed to an outstanding loan balance by the local lender must not
exceed three percent per year.

new text begin (g) Environmental service providers may request loans to finance projects implemented
on behalf of multiple eligible individuals in excess of the limits in paragraph (c), not to
exceed the total of the number of represented landowners multiplied by the limit in paragraph
(c), clause (1).
new text end

Sec. 4.

Minnesota Statutes 2016, section 103E.021, subdivision 6, is amended to read:

Subd. 6.

Incremental deleted text begin implementation deleted text end new text begin establishment new text end of vegetated ditch buffer strips
and side inlet controls.

(a) Notwithstanding other provisions of this chapter requiring
appointment of viewers and redetermination of benefits and damages, a drainage authority
may deleted text begin implement deleted text end new text begin make findings and order the establishment of new text end permanent buffer strips of
perennial vegetation deleted text begin approved by the drainage authority deleted text end or side inlet controls, or both,
adjacent to a public drainage ditch, where necessary to control erosion and sedimentation,
improve water quality, or maintain the efficiency of the drainage system. new text begin The drainage
authority's finding that the establishment of permanent buffer strips of perennial vegetation
or side inlet controls is necessary to control erosion and sedimentation, improve water
quality, or maintain the efficiency of the drainage system is sufficient to confer jurisdiction
under this subdivision. new text end Preference should be given to planting native species of a local
ecotype. The approved perennial vegetation shall not impede future maintenance of the
ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width measured
outward from the top edge of the existing constructed channel. Drainage system rights-of-way
for the acreage and additional property required for the permanent strips must be acquired
by the authority having jurisdiction.

(b) A project under this subdivision shall be implemented as a repair according to section
103E.705, except that the drainage authority may appoint an engineer to examine the drainage
system and prepare an engineer's repair report for the project.

(c) Damages shall be determined by the drainage authority, or viewers, appointed by
the drainage authority, according to section 103E.315, subdivision 8. A damages statement
shall be prepared, including an explanation of how the damages were determined for each
property affected by the project, and filed with the auditor or watershed district. Within 30
days after the damages statement is filed, the auditor or watershed district shall prepare
property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), (6),
(7), and (8), and mail a copy of the property owner's report and damages statement to each
owner of property affected by the proposed project.

(d) After a damages statement is filed, the drainage authority shall set a time, by order,
not more than 30 days after the date of the order, for a hearing on the project. At least ten
days before the hearing, the auditor or watershed district shall give notice by mail of the
time and location of the hearing to the owners of property and political subdivisions likely
to be affected by the project.

(e) The drainage authority shall make findings and order the repairs to be made if the
drainage authority determines from the evidence presented at the hearing and by the viewers
and engineer, if appointed, that the repairs are necessary for the drainage system and the
costs of the repairs are within the limitations of section 103E.705.

Sec. 5.

Minnesota Statutes 2016, section 103E.071, is amended to read:

103E.071 COUNTY ATTORNEY.

The county attorney shall represent the county in all drainage proceedings and related
matters without special compensation new text begin , except as provided in section 388.09, subdivision 1 new text end .
A county attorney, the county attorney's assistant, or any attorney associated with the county
attorney in business, may not otherwise appear in any drainage proceeding for any interested
person.

Sec. 6.

Minnesota Statutes 2016, section 103E.351, subdivision 1, is amended to read:

Subdivision 1.

Conditions to redetermine benefits and damages; appointment of
viewers.

If the drainage authority determines that the deleted text begin original deleted text end benefits or damages new text begin of record
new text end determined in a drainage proceeding do not reflect reasonable present day land values or
that the benefited or damaged areas have changed, or if more than deleted text begin 50 deleted text end new text begin 26 new text end percent of the
owners of property new text begin , or owners of 26 percent of the property, new text end benefited or damaged by a
drainage system petition for deleted text begin correction of an error that was made at the time of the
proceedings that established the drainage system deleted text end new text begin a redetermination of benefits and damages new text end ,
the drainage authority may appoint three viewers to redetermine and report the benefits and
damages and the benefited and damaged areas.

Sec. 7. new text begin PUBLIC DRAINAGE DITCH BUFFER STRIP; PLANTING AND
MAINTENANCE.
new text end

new text begin With the consent of the property owner where the drainage ditch buffer will be located,
a drainage authority, as defined in Minnesota Statutes, section 103E.005, subdivision 9,
may plant and maintain 16-1/2-foot ditch buffer strips that meet the width and vegetation
requirements of Minnesota Statutes, section 103E.021, before acquiring and compensating
for the buffer strip land rights according to Minnesota Statutes, chapter 103E. Planting and
maintenance costs may be paid in accordance with Minnesota Statutes, chapter 103E. This
section expires June 30, 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

ACCELERATED RUNOFF AND SEDIMENT DELIVERY OPTION

Section 1.

Minnesota Statutes 2016, section 103E.005, is amended by adding a subdivision
to read:

new text begin Subd. 27a. new text end

new text begin Relative runoff. new text end

new text begin "Relative runoff" includes the surface and subsurface runoff
potential from a specific property compared on an equitable basis to all other properties
contributing runoff to the drainage system.
new text end

Sec. 2.

Minnesota Statutes 2016, section 103E.005, is amended by adding a subdivision
to read:

new text begin Subd. 27b. new text end

new text begin Relative sediment delivery. new text end

new text begin "Relative sediment delivery" means the sediment
delivery potential from a specific property compared on an equitable basis to all other
properties contributing runoff to the drainage system.
new text end

Sec. 3.

Minnesota Statutes 2016, section 103E.095, is amended to read:

103E.095 APPEAL deleted text begin FROM ORDERS deleted text end new text begin OF AN ORDER new text end DISMISSING OR
ESTABLISHING new text begin A new text end DRAINAGE deleted text begin SYSTEMS deleted text end new text begin PROJECT, OR OF A REPAIR COST
APPORTIONMENT REPORT new text end .

Subdivision 1.

Notice of appeal.

A party may appeal an order made by the board that
dismisses drainage new text begin project new text end proceedings deleted text begin or deleted text end new text begin , new text end establishes deleted text begin or refuses to establish deleted text end a drainage
project new text begin , or approves a repair cost apportionment report new text end to the district court of the county
where the drainage proceedings new text begin or drainage system repair new text end are pending. The appellant must
serve notice of the appeal to the auditor new text begin or secretary new text end within 30 days after the order is filed.
deleted text begin After notice of the appeal is served, the appeal may be brought to trial by the appellant or
the drainage authority after notifying the other party at least ten days before the trial date.
deleted text end

Subd. 2.

Trial.

The appeal must be tried by the court without a jury. The court shall
examine the entire drainage proceeding and related matters and receive evidence to determine
whether the findings made by the board can be sustained. At the trial the findings made by
the board are prima facie evidence of the matters stated in the findings, and the board's order
is prima facie reasonable. If the court finds that the order appealed is lawful and reasonable,
it shall be affirmed. If the court finds that the order appealed is arbitrary, unlawful, or not
supported by the evidence, it shall make an order, justified by the court record, to take the
place of the appealed order new text begin or repair cost apportionment report new text end , or remand the order new text begin or report
new text end to the board for further proceedings. After the appeal has been determined by the court, the
board shall proceed in conformity with the court order.

Subd. 3.

Determination of benefits and damages after court order.

If the order
establishing a drainage project is appealed, the trial of appeals related to benefits or damages
in the drainage proceeding must be stayed until the establishment appeal is determined. If
the order establishing the drainage project is affirmed, appeals related to benefits and damages
must then be tried.

Subd. 4.

Procedure if appeal order establishes drainage project.

If an order refusing
to establish a drainage project is appealed, and the court, by order, establishes the drainage
project, the auditor shall give notice by publication of the filed order. The notice is sufficient
if it refers to the drainage project or system by number or other descriptive designation,
states the meaning of the order, and states the date the court order was filed. A person may
appeal the establishment order to the district court as provided in this section.

Subd. 5.

Appeal of appellate order.

A party aggrieved by a final order or judgment
rendered on appeal to the district court may appeal as in other civil cases. The appeal must
be made and perfected within 30 days after the filing of the order or entry of judgment.

Sec. 4.

Minnesota Statutes 2016, section 103E.215, subdivision 5, is amended to read:

Subd. 5.

Subsequent proceedings.

When a petition and the bond required by section
103E.202 are filed, the auditor shall present the petition to the board at its next meeting or,
for a joint county drainage system, to the joint county drainage authority within ten days
after the petition is filed. The drainage authority shall appoint an engineer to examine the
drainage system and make an improvement report. The improvement proceedings must be
conducted under this chapter as provided for the original proceedings for the establishment
of a drainage project. The benefits and damages determined must be as a result of the
proposed improvement. deleted text begin Assessments for the repair of the improvement must be based on
the benefits determined for the improvement.
deleted text end

Sec. 5.

Minnesota Statutes 2016, section 103E.401, subdivision 4, is amended to read:

Subd. 4.

Hearing.

At the hearing the drainage authority shall consider the capacity of
the outlet drainage system. If express authority is given to use the drainage system as an
outlet, the drainage authority shall state, by order, the terms and conditions for use of the
established drainage system as an outlet and shall set the amount to be paid as an outlet fee.
The order must describe the property to be benefited by the drainage system and must state
the amount of benefits to the property for the outlet. The property benefited is liable for
new text begin repair new text end assessments levied after that time in the drainage system, deleted text begin on the basis of the benefits
as if the benefits had been determined in the order establishing the drainage system deleted text end new text begin in
accordance with section 103E.728 new text end .

Sec. 6.

Minnesota Statutes 2016, section 103E.411, subdivision 5, is amended to read:

Subd. 5.

Benefits and assessments if drainage system established.

If the drainage
system is established, the drainage authority must determine the amount the municipality
must pay for the privilege of using the drainage system as an outlet. The amount must be
paid to the deleted text begin affected counties deleted text end new text begin drainage authority new text end and credited to the account of the drainage
system used as an outlet. The municipality is liable for all subsequent liens and assessments
for the repair and maintenance of the drainage system in deleted text begin proportion to the benefits, as though
the benefits were determined in the order establishing the drainage system deleted text end new text begin accordance with
section 103E.728 new text end .

Sec. 7.

Minnesota Statutes 2016, section 103E.615, subdivision 1, is amended to read:

Subdivision 1.

Municipalities.

Assessments filed deleted text begin for benefits deleted text end to a municipality are a
liability of the municipality and are due and payable with interest in installments on
November 1 of each year as provided in section 103E.611. If the installments and interest
are not paid on or before November 1, the amount due with interest added as provided in
section 103E.611 must be extended by the county auditor against all property in the
municipality that is liable to taxation. A levy must be made and the amount due must be
paid and collected in the same manner and time as other taxes.

Sec. 8.

Minnesota Statutes 2016, section 103E.615, subdivision 2, is amended to read:

Subd. 2.

County or state-aid road.

If a public road deleted text begin benefited deleted text end new text begin assessed new text end is a county or
state-aid road, the assessment filed is against the county and must be paid out of the road
and bridge fund of the county.

Sec. 9.

Minnesota Statutes 2016, section 103E.615, subdivision 3, is amended to read:

Subd. 3.

State trunk highway.

An assessment against the state deleted text begin for benefits deleted text end to trunk
highways is chargeable to and payable out of the trunk highway fund. The commissioner
of transportation shall pay assessments from the trunk highway fund after receipt of a
certified copy of the assessment against the state deleted text begin for benefits deleted text end to a trunk highway.

Sec. 10.

Minnesota Statutes 2016, section 103E.615, subdivision 5, is amended to read:

Subd. 5.

State property.

State property, including rural credit property, is assessable
for benefits received new text begin , or repair costs in accordance with section 103E.728 new text end . The assessment
must be paid by the state from funds appropriated and available for drainage assessments
after the state officer having jurisdiction over the assessed property certifies the assessment
to the commissioner of management and budget.

Sec. 11.

Minnesota Statutes 2016, section 103E.615, subdivision 7, is amended to read:

Subd. 7.

Railroad and utility property.

Property owned by a railroad or other utility
corporation benefited by a drainage project is liable for the assessments deleted text begin of deleted text end new text begin for new text end benefits on
the property new text begin , and for repair costs apportioned in accordance with section 103E.728, new text end as other
taxable property. From the date the drainage lien is recorded, the amount of the assessment
with interest is a lien against all property of the corporation within the county. Upon default
the assessment may be collected by civil action or the drainage lien may be foreclosed by
action in the same manner as provided by law for the foreclosure of mortgage liens. The
county where the drainage lien is filed has the right of action against the corporation to
enforce and collect the assessment.

Sec. 12.

Minnesota Statutes 2016, section 103E.711, subdivision 1, is amended to read:

Subdivision 1.

Repair cost statement.

For a joint county drainage system the auditor
of a county that has made repairs may present a repair cost statement at the end of each
year, or other convenient period after completion, to each affected county. The repair cost
statement must show the nature and cost of the repairs to the drainage system and must be
deleted text begin based on the original apportionment of cost following the establishment of the drainage
system deleted text end new text begin apportioned in accordance with section 103E.728 new text end . If a board approves the repair
costs, the amount of the statement must be paid to the county submitting the statement.

Sec. 13.

Minnesota Statutes 2016, section 103E.715, subdivision 4, is amended to read:

Subd. 4.

Hearing on repair report.

(a) The drainage authority shall make findings and
order the repair to be made if:

(1) the drainage authority determines from the repair report and the evidence presented
that the repairs recommended are necessary for the best interests of the affected property
owners; or

(2) the repair petition is signed by the owners of at least 26 percent of the property area
affected by and assessed for deleted text begin the original construction deleted text end new text begin benefits new text end of the drainage system, and
the drainage authority determines that the drainage system is in need of repair so that it no
longer serves its deleted text begin original deleted text end purpose and the cost of the repair will not exceed the total benefits
deleted text begin determined in the original drainage system proceeding deleted text end new text begin of record for the drainage system new text end .

(b) The order must direct the auditor and the chair of the board or, for a joint county
drainage system, the auditors of the affected counties to proceed and prepare and award a
contract for the repair of the drainage system. The contract must be for the repair described
in the repair report and as determined necessary by the drainage authority, and be prepared
in the manner provided in this chapter deleted text begin for the original drainage system construction deleted text end .

Sec. 14.

Minnesota Statutes 2016, section 103E.715, subdivision 5, is amended to read:

Subd. 5.

Apportionment of repair cost for joint county drainage system.

For the
repair of a joint county drainage system, the drainage authority shall, by order, apportion
the repair cost among affected counties in deleted text begin the same manner required in the original
construction of the drainage system deleted text end new text begin accordance with section 103E.728 new text end .

Sec. 15.

Minnesota Statutes 2016, section 103E.725, is amended to read:

103E.725 COST OF REPAIR.

All fees and costs incurred for proceedings relating to the repair of a drainage system,
including inspections, engineering, viewing, new text begin determination and administration of repair cost
apportionment, hearings, new text end and publications, new text begin as applicable, new text end are costs of the repair deleted text begin and must
be assessed against the property and entities benefited deleted text end .

Sec. 16.

Minnesota Statutes 2016, section 103E.728, subdivision 1, is amended to read:

Subdivision 1.

Generally.

new text begin Except as otherwise provided in this section, new text end the cost of
repairing a drainage system shall be apportioned new text begin :
new text end

new text begin (1) new text end pro rata on all property and entities that have been assessed benefits for the drainage
system deleted text begin except as provided in this section deleted text end new text begin based on an applicable confirmed viewer's report
of benefits and damages; or
new text end

new text begin (2) on all property contributing runoff to the drainage system, based on relative runoff
and relative sediment delivery in an approved repair cost apportionment report, in accordance
with subdivision 1a new text end .

new text begin Repair costs apportioned using the method in clause (2) are charges for property contributing
runoff to the drainage system that shall be considered repair cost assessments in this chapter.
new text end

Sec. 17.

Minnesota Statutes 2016, section 103E.728, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Relative runoff and relative sediment delivery method for repair cost
apportionment. new text end

new text begin (a) When the drainage authority has determined that a drainage system
repair is necessary, the drainage authority may apportion costs for the repair of a drainage
system based on relative runoff and relative sediment delivery from any property, public
road, street, railway, or other utility contributing runoff to the drainage system as provided
in this subdivision. If this cost apportionment method is used, costs must be determined
prior to ordering the repair of all or any part of a drainage system as provided in section
103E.705, subdivision 3, or 103E.715, subdivision 4, or prior to levying a repair fund
assessment as provided in section 103E.735, subdivision 1.
new text end

new text begin (b) The drainage authority shall appoint one or more persons qualified to use geographic
information system technology and applicable digital information, including but not limited
to conditioned topographic data, soils and land use data, and property, road, and utility
corridor identification data, together with appropriate on-site verification, to equitably
apportion repair costs.
new text end

new text begin (c) The person or persons conducting the cost apportionment shall file a repair cost
apportionment report with the drainage authority explaining in nontechnical language the
method, data, and interpretations used, and the cost apportionment results. The report shall
present data and results in a format so that individual property owners, political subdivisions,
and utilities can clearly examine the information applicable to their property, public road,
street, railway, or other utility, including for each parcel having a separate property
identification number.
new text end

new text begin (d) When a repair cost apportionment report is filed, the drainage authority, in consultation
with the auditor or secretary, shall set a time, by order, for a hearing on the report not more
than 30 days after the date of the order. At least 20 days before the hearing, the auditor or
secretary shall give notice by mail of the time and location of the hearing to the owners of
property, political subdivisions, and utilities proposed to be assessed in the report. The
notice of hearing must include a copy of the portion of the report explaining in nontechnical
language the method, data, and interpretations used, the cost apportionment results applicable
to the property owner, political subdivision, or utility receiving notice, and a statement of
the location where the entire repair cost apportionment report has been filed for public
inspection.
new text end

new text begin (e) At the hearing, the drainage authority shall hear and consider the testimony presented
by all interested parties. At least one person responsible for preparing the repair cost
apportionment report shall be present at the initial hearing.
new text end

new text begin (f) If the drainage authority determines that the apportionment of costs is not equitable,
the drainage authority may amend the repair cost apportionment report and shall make
necessary and proper findings and an order in relation to the report, or resubmit matters to
the preparer of the repair cost apportionment report for further consideration. If matters are
resubmitted, the hearing may be continued as necessary to make and hear an amended report.
The report preparer shall proceed promptly to reconsider resubmitted matters and shall make
and file an amended report. The drainage authority may replace the original report with the
amended report for apportionment of repair costs and make necessary and proper findings
and an order to approve the amended report. The jurisdiction of the drainage authority
continues in the property given proper notice, and new or additional notice is not required
for that property.
new text end

new text begin (g) After consideration of the repair cost apportionment report, any amended report, and
all evidence presented, the drainage authority shall make findings, approve the report, and
apportion repair costs consistent with the values in the repair cost apportionment report if
it finds that the cost apportionment is equitable based on:
new text end

new text begin (1) the weighting of relative runoff and relative sediment delivery is appropriate for the
type of repair;
new text end

new text begin (2) the data inputs are reliable; and
new text end

new text begin (3) the computation method is reliable.
new text end

new text begin (h) The drainage authority may continue to apportion repair costs consistent with the
values in the repair cost apportionment report of record. After a repair cost apportionment
report has been approved under this subdivision, an owner of property, a political subdivision,
or a utility assessed in the repair cost apportionment report of record may request in writing
that the drainage authority update the report based on changed land use. The request shall
be filed with the auditor of the county where the property is located or the secretary. Prior
to the next approval by the drainage authority of a repair cost assessment for the drainage
system, the drainage authority shall determine if the repair cost apportionment report of
record reasonably reflects current land use, relative runoff, and relative sediment delivery.
If it does not, the drainage authority shall make findings and shall appoint one or more
persons to prepare and file an updated repair cost apportionment report for the drainage
system in accordance with paragraphs (c), (d), (e), (f), and (g).
new text end

new text begin (i) Proper consideration must be given to property that is used for conservation that
prohibits development or land use change by ownership, deed restriction, or conservation
easement, or is enrolled in a program that prohibits agricultural crop production.
new text end

new text begin (j) The owner of any property subject to cost apportionment listed in the adopted repair
cost apportionment report may appeal findings of the drainage authority under paragraph
(g) as provided in section 103E.095.
new text end

Sec. 18.

Minnesota Statutes 2016, section 103E.728, subdivision 2, is amended to read:

Subd. 2.

Additional assessment for agricultural practices on permanent strip of
perennial vegetation.

(a) The drainage authority may, after notice and hearing, charge an
additional assessment on property that has agricultural practices on or otherwise violates
provisions related to the permanent strip of perennial vegetation acquired under section
103E.021.

(b) The drainage authority may determine the cost of the repair per mile of open ditch
on the ditch system. Property that is in violation of the deleted text begin grass deleted text end new text begin section 103E.021 perennial
buffer strip new text end requirement shall be assessed deleted text begin a deleted text end new text begin an additional new text end cost of 20 percent of the repair
cost per open ditch mile multiplied by the length of open ditch in miles on the property in
violation.

(c) After the amount of the additional assessment is determined and applied to the repair
cost, the balance of the repair cost may be apportioned deleted text begin pro rata deleted text end as provided in subdivision
1.

Sec. 19.

Minnesota Statutes 2016, section 103E.731, subdivision 1, is amended to read:

Subdivision 1.

Repair cost deleted text begin of deleted text end assessments.

If there is not enough money in the drainage
system account to make a repair, the board shall assess the costs of the repairs deleted text begin on all property
and entities that have been assessed benefits for the drainage system deleted text end new text begin in accordance with
section 103E.728 new text end .

Sec. 20.

Minnesota Statutes 2016, section 103E.731, subdivision 2, is amended to read:

Subd. 2.

Number of installments.

The assessments may be paid in new text begin up to 15 new text end annual
installments specified in the assessment order. deleted text begin If the assessments are not more than 50
percent of the original cost of the drainage system, the installments may not exceed ten. If
the assessments are greater than 50 percent of the original cost of the drainage system, the
board may order the assessments to be paid in 15 or less installments.
deleted text end

Sec. 21.

Minnesota Statutes 2016, section 103E.731, subdivision 6, is amended to read:

Subd. 6.

Repair of state drainage system when no benefits assessed.

For the repair
of a drainage system established by the state where benefits were not assessed to the property,
the drainage authority shall deleted text begin proceed to appoint viewers to determine the benefits resulting
from the repair deleted text end new text begin apportion repair costs in accordance with section 103E.728, new text end and collect
assessments for the repair as provided in this chapter.

Sec. 22.

Minnesota Statutes 2016, section 103E.735, subdivision 1, is amended to read:

Subdivision 1.

Authority and limits of fund.

To create new text begin or maintain new text end a repair fund for a
drainage system to be used only for repairs, the drainage authority may apportion and assess
an amount deleted text begin against all property and entities assessed for benefits in proceedings for
establishment of the drainage system, including property not originally assessed and
subsequently found to be benefited according to law deleted text end new text begin in accordance with section 103E.728 new text end .
The fund may not exceed 20 percent of the assessed benefits of the drainage system or
$100,000, whichever is greater. If the account in a fund for a drainage system exceeds the
larger of 20 percent of the assessed benefits of the drainage system or $100,000, assessments
for the fund may not be made until the account is less than the larger of 20 percent of the
assessed benefits or $100,000. deleted text begin Assessments must be made pro rata according to the
determined benefits. deleted text end Assessments may be made payable, by order, in equal annual
installments. The auditor shall file a tabular statement as provided in section 103E.731,
subdivision 4, with the county recorder. Assessments must be collected as provided in
section 103E.731.