1.1                          A bill for an act 
  1.2             relating to waters; eliminating the position of board 
  1.3             of water and soil resources secretary; increasing 
  1.4             board members' compensation; duties of advisory 
  1.5             committees; rule approval procedure; guidelines for 
  1.6             management plans; exemptions from review; appeals from 
  1.7             rules, permit decisions, and orders; informal dispute 
  1.8             resolution; assessment basis; benefits or damages to 
  1.9             state-owned land; property acquisition procedures; 
  1.10            water resource studies and programs; eminent domain 
  1.11            procedure; amending Minnesota Statutes 1994, sections 
  1.12            103D.101, subdivision 4; 103D.205, subdivisions 1 and 
  1.13            4; 103D.221, subdivision 2; 103D.255, subdivision 1; 
  1.14            103D.261, subdivision 1; 103D.271, subdivisions 2 and 
  1.15            4; 103D.305, subdivision 1; 103D.311, subdivision 4; 
  1.16            103D.315, subdivisions 1, 8, and 11; 103D.321, 
  1.17            subdivision 2; 103D.331; 103D.335, subdivisions 5, 6, 
  1.18            11, 13, and by adding a subdivision; 103D.341, 
  1.19            subdivision 2; 103D.351; 103D.401, subdivisions 1 and 
  1.20            2; 103D.405, subdivision 1; 103D.515, subdivision 4; 
  1.21            103D.531; 103D.535, subdivisions 1, 4, and 5; 
  1.22            103D.537; 103D.611, subdivisions 1, 4, and 5; 
  1.23            103D.621, subdivision 4; 103D.625, subdivisions 3 and 
  1.24            4; 103D.631, subdivision 2; 103D.635, subdivisions 1 
  1.25            and 3; 103D.705, subdivision 1; 103D.711, subdivision 
  1.26            2; 103D.715, subdivisions 3 and 4; 103D.721, 
  1.27            subdivisions 2 and 3; 103D.741, subdivision 1; 
  1.28            103D.745, subdivisions 2 and 3; 103D.811, subdivisions 
  1.29            1 and 3; 103D.901, subdivisions 2, 4, and 5; 103D.905, 
  1.30            subdivisions 3 and 5; 103D.921, subdivisions 1 and 3; 
  1.31            103D.925; and 117.011; proposing coding for new law in 
  1.32            Minnesota Statutes, chapter 103D. 
  1.33  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.34     Section 1.  Minnesota Statutes 1994, section 103D.101, 
  1.35  subdivision 4, is amended to read: 
  1.36     Subd. 4.  [RECORDS.] The board must keep a record of all 
  1.37  proceedings before it and maintain the record on file the record 
  1.38  with the secretary of the board.  Copies of the record may be 
  1.39  obtained on terms and conditions prescribed by the board.  
  2.1      Sec. 2.  Minnesota Statutes 1994, section 103D.205, 
  2.2   subdivision 1, is amended to read: 
  2.3      Subdivision 1.  [FILING.] To establish a watershed 
  2.4   district, an establishment petition must be filed with the 
  2.5   secretary of the board.  
  2.6      Sec. 3.  Minnesota Statutes 1994, section 103D.205, 
  2.7   subdivision 4, is amended to read: 
  2.8      Subd. 4.  [FILING ESTABLISHMENT PETITIONS.] The petitioners 
  2.9   must file a copy of the establishment petition with the auditors 
  2.10  of the counties affected by the proposed watershed district, the 
  2.11  commissioner, and the director.  The original establishment 
  2.12  petition, with a signed statement of delivery or receipt for 
  2.13  each of the establishment petitions submitted to the auditors of 
  2.14  affected counties, the commissioners, and the directors, must be 
  2.15  filed with the secretary of the board.  
  2.16     Sec. 4.  Minnesota Statutes 1994, section 103D.221, 
  2.17  subdivision 2, is amended to read: 
  2.18     Subd. 2.  [NOTICE.] (a) The board must give notice of the 
  2.19  establishment hearing by publication in a legal newspaper that 
  2.20  is published in counties affected by the proposed watershed 
  2.21  district.  The last publication must occur at least ten days 
  2.22  before the establishment hearing. 
  2.23     (b) The board must give notice of the establishment hearing 
  2.24  by mail to the auditors of counties and to the chief executive 
  2.25  officials of municipalities affected by the proposed watershed 
  2.26  district.  
  2.27     (c) The notice must include: 
  2.28     (1) a statement that an establishment petition has been 
  2.29  filed with the board and auditors of counties affected by the 
  2.30  proposed watershed district; 
  2.31     (2) a general description of the need for the proposed 
  2.32  district, and the purpose of the proposed watershed district's 
  2.33  contemplated improvements, if any; 
  2.34     (3) a general description of the property to be included in 
  2.35  the proposed watershed district; 
  2.36     (4) the date, time, and location of hearing; and 
  3.1      (5) a statement that all persons affected or interested in 
  3.2   the establishment of the proposed watershed district may attend 
  3.3   and give statements at the establishment hearing.  
  3.4      Sec. 5.  Minnesota Statutes 1994, section 103D.255, 
  3.5   subdivision 1, is amended to read: 
  3.6      Subdivision 1.  [PETITION.] (a) Proceedings to withdraw 
  3.7   territory from an existing watershed district must be initiated 
  3.8   by a petition filed with the secretary of the board.  
  3.9      (b) The required signatures on a petition for withdrawal 
  3.10  are the same as prescribed for an establishment petition, but 
  3.11  the percentages must be calculated only with reference to the 
  3.12  territory that is proposed to be withdrawn from the watershed 
  3.13  district.  
  3.14     (c) The petition must state that: 
  3.15     (1) the territory described has not received or will not 
  3.16  receive any benefits from the operation of the watershed 
  3.17  districts; 
  3.18     (2) the watershed district can perform the functions for 
  3.19  which it was established without the inclusion of the territory; 
  3.20  and 
  3.21     (3) the territory is not, in fact, a part of the watershed. 
  3.22     (d) The petition must request the release of the described 
  3.23  territory from the watershed district. 
  3.24     (e) The petition must be served on the board and any 
  3.25  affected watershed district, and the board shall proceed as 
  3.26  prescribed for an establishment petition.  The requirements for 
  3.27  notices and public hearings are as prescribed for the 
  3.28  establishment petition.  
  3.29     Sec. 6.  Minnesota Statutes 1994, section 103D.261, 
  3.30  subdivision 1, is amended to read: 
  3.31     Subdivision 1.  [PETITION.] (a) Proceedings to enlarge an 
  3.32  existing watershed district must be initiated by a petition 
  3.33  filed with the secretary of the board.  The required signatures 
  3.34  on a petition to enlarge are the same as for an establishment 
  3.35  petition, but the percentages must be calculated only with 
  3.36  reference to the territory that is proposed to be added to the 
  4.1   watershed district.  The petition must: 
  4.2      (1) state that the area to be added is contiguous to the 
  4.3   existing watershed district; 
  4.4      (2) state that the area can be feasibly administered by the 
  4.5   managers of the existing watershed district; 
  4.6      (3) state reasons why adding the area to the existing 
  4.7   watershed district would be conducive to the public health and 
  4.8   welfare; 
  4.9      (4) include a map of the affected area; 
  4.10     (5) state the name of the proposed enlarged watershed 
  4.11  district, if other than that of the existing watershed district; 
  4.12  and 
  4.13     (6) state a request for the addition of the proposed 
  4.14  territory. 
  4.15     (b) The petition must be served on the board and affected 
  4.16  watershed districts, and the board must proceed as prescribed 
  4.17  for an establishment petition.  
  4.18     (c) The requirement of notice and public hearings is as 
  4.19  prescribed for the establishment petition.  
  4.20     Sec. 7.  Minnesota Statutes 1994, section 103D.271, 
  4.21  subdivision 2, is amended to read: 
  4.22     Subd. 2.  [INITIATION.] Proceedings for the termination of 
  4.23  a watershed district may only be initiated by filing a 
  4.24  termination petition with the secretary of the board.  
  4.25     Sec. 8.  Minnesota Statutes 1994, section 103D.271, 
  4.26  subdivision 4, is amended to read: 
  4.27     Subd. 4.  [TERMINATION PETITION.] (a) The termination 
  4.28  petition must be signed by at least 25 percent of the resident 
  4.29  owners residing in the watershed district.  The termination 
  4.30  petition must state that the existence of the watershed district 
  4.31  does not benefit the public welfare and public interest and the 
  4.32  watershed district is not needed to accomplish the purposes of 
  4.33  this chapter.  
  4.34     (b) The petitioners must file a copy of the termination 
  4.35  petition with the auditors of the counties affected by the 
  4.36  watershed district.  The original termination petition with a 
  5.1   statement signed for delivery or receipt of each of the 
  5.2   termination petitions submitted to the auditors of counties 
  5.3   affected by the watershed district must be filed with the 
  5.4   secretary of the board.  
  5.5      Sec. 9.  Minnesota Statutes 1994, section 103D.305, 
  5.6   subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [INITIATION.] A proceeding to increase the 
  5.8   number of managers of a watershed district must be initiated by 
  5.9   filing a petition with the secretary of the board.  
  5.10     Sec. 10.  Minnesota Statutes 1994, section 103D.311, 
  5.11  subdivision 4, is amended to read: 
  5.12     Subd. 4.  [RECORD OF APPOINTED MANAGERS.] A record of all 
  5.13  appointments made under this section must be filed with the 
  5.14  county auditor of each county affected by the watershed 
  5.15  district, the secretary of the board of managers, and the 
  5.16  secretary of the board of water and soil resources.  
  5.17     Sec. 11.  Minnesota Statutes 1994, section 103D.315, 
  5.18  subdivision 1, is amended to read: 
  5.19     Subdivision 1.  [OATH.] Each manager must take and sign the 
  5.20  oath defined in the Minnesota Constitution, article V, section 
  5.21  6.  The signed oath must be filed with the secretary of the 
  5.22  board.  
  5.23     Sec. 12.  Minnesota Statutes 1994, section 103D.315, 
  5.24  subdivision 8, is amended to read: 
  5.25     Subd. 8.  [COMPENSATION.] The compensation of managers for 
  5.26  meetings and for performance of other necessary duties may not 
  5.27  exceed $50 $55 a day.  Managers are entitled to reimbursement 
  5.28  for traveling and other necessary expenses incurred in the 
  5.29  performance of official duties.  
  5.30     Sec. 13.  Minnesota Statutes 1994, section 103D.315, 
  5.31  subdivision 11, is amended to read: 
  5.32     Subd. 11.  [ADMINISTRATION BYLAWS AND RULES.] The managers 
  5.33  shall adopt bylaws and rules for the administration of the 
  5.34  business and affairs of the watershed district.  Rules Bylaws 
  5.35  adopted under this subdivision are not subject to section 
  5.36  103D.341.  
  6.1      Sec. 14.  Minnesota Statutes 1994, section 103D.321, 
  6.2   subdivision 2, is amended to read: 
  6.3      Subd. 2.  [CHANGE OF PRINCIPAL PLACE OF BUSINESS.] (a) The 
  6.4   managers may initiate a change of the principal place of 
  6.5   business to a different location within the watershed district 
  6.6   by passing a resolution stating the proposed change of 
  6.7   location.  After passing the resolution, the managers must set a 
  6.8   time and location for a hearing on the change of the principal 
  6.9   place of business.  
  6.10     (b) The managers must give notice of the hearing by 
  6.11  publication in a legal newspaper, published in the counties 
  6.12  affected by the watershed district, with the last publication 
  6.13  occurring at least ten days before the hearing.  Notice of the 
  6.14  hearing must be mailed to the auditors of counties affected by 
  6.15  the watershed district ten days before the hearing.  After the 
  6.16  hearing, the managers may, by order, change the place of 
  6.17  business.  
  6.18     (c) The change of the principal place of business of the 
  6.19  watershed district is effective when a certified copy of the 
  6.20  managers' order is filed with the secretary of state and the 
  6.21  secretary of the board.  
  6.22     Sec. 15.  Minnesota Statutes 1994, section 103D.331, is 
  6.23  amended to read: 
  6.24     103D.331 [ADVISORY COMMITTEE.] 
  6.25     Subdivision 1.  [PURPOSE.] The managers must annually 
  6.26  appoint an advisory committee to advise and assist the managers 
  6.27  on all matters affecting the interests of the watershed district 
  6.28  and make recommendations to the managers on all contemplated 
  6.29  projects and improvements in the watershed district.  
  6.30     Subd. 1a.  [DUTIES.] For purposes of carrying out its 
  6.31  duties under this section the advisory committee shall:  
  6.32     (1) elect a chair from its membership; 
  6.33     (2) elect a recorder from its membership; 
  6.34     (3) establish a meeting schedule, which at a minimum meets 
  6.35  annually; 
  6.36     (4) consider issues pertinent to the functions and purposes 
  7.1   of the watershed district; 
  7.2      (5) review and comment on reports, minutes, activities, and 
  7.3   proposed projects of the managers; and 
  7.4      (6) report to the managers the general content of advisory 
  7.5   committee meetings and resulting recommendations.  
  7.6      Subd. 2.  [MEMBERS.] (a) The advisory committee consists of 
  7.7   at least five members.  If practicable, the advisory committee 
  7.8   members selected must should include a supervisor of 
  7.9   a representative from each soil and water conservation district, 
  7.10  a member of a representative of each county board, a member of a 
  7.11  sporting organization, and a member of a farm organization.  
  7.12  Other advisory committee members may be appointed at the 
  7.13  discretion of the managers.  The members must be residents of 
  7.14  the watershed district, except representatives from soil and 
  7.15  water conservation districts and counties, and serve at the 
  7.16  pleasure of the managers. 
  7.17     (b) In addition, the managers may appoint other interested 
  7.18  and technical persons who may or may not reside within the 
  7.19  watershed district to serve at the pleasure of the managers.  
  7.20     Subd. 3.  [EXPENSE REIMBURSEMENT.] The managers may 
  7.21  reimburse members of the advisory committee for actual traveling 
  7.22  and other necessary expenses incurred in the performance of 
  7.23  duties in the amount as provided for state employees.  
  7.24     Sec. 16.  Minnesota Statutes 1994, section 103D.335, 
  7.25  subdivision 5, is amended to read: 
  7.26     Subd. 5.  [DATA ACQUISITION.] The managers may: 
  7.27     (1) make necessary surveys or use other reliable surveys 
  7.28  and data and develop projects and programs to acquire data to 
  7.29  accomplish the purposes for which the watershed district is 
  7.30  organized; and 
  7.31     (2) establish and maintain devices for acquiring and 
  7.32  recording hydrological and water quality data.  
  7.33     Sec. 17.  Minnesota Statutes 1994, section 103D.335, 
  7.34  subdivision 6, is amended to read: 
  7.35     Subd. 6.  [PROJECTS NOT REQUIRING A PETITION.] The managers 
  7.36  may initiate, undertake, and construct implement projects not 
  8.1   required to be instituted by a petition under section 103D.701.  
  8.2      Sec. 18.  Minnesota Statutes 1994, section 103D.335, 
  8.3   subdivision 11, is amended to read: 
  8.4      Subd. 11.  [ACQUISITION OF PROPERTY.] The managers may 
  8.5   acquire by gift, purchase, taking under the procedures of this 
  8.6   chapter, or by the right of eminent domain, necessary real and 
  8.7   personal property.  The watershed district may acquire property 
  8.8   outside the watershed district where necessary for a water 
  8.9   supply system. 
  8.10     Sec. 19.  Minnesota Statutes 1994, section 103D.335, 
  8.11  subdivision 13, is amended to read: 
  8.12     Subd. 13.  [CONSTRUCTION OR IMPLEMENTATION CONTRACTS.] The 
  8.13  managers may enter into contracts of construction or 
  8.14  implementation authorized by this chapter. 
  8.15     Sec. 20.  Minnesota Statutes 1994, section 103D.335, is 
  8.16  amended by adding a subdivision to read: 
  8.17     Subd. 25.  [WATER RESOURCE MANAGEMENT ACTIVITIES.] The 
  8.18  managers may conduct studies and monitoring of water resources 
  8.19  within the watershed district and implement water resource 
  8.20  management programs. 
  8.21     Sec. 21.  Minnesota Statutes 1994, section 103D.341, 
  8.22  subdivision 2, is amended to read: 
  8.23     Subd. 2.  [PROCEDURE.] (a) Rules of the watershed district 
  8.24  must be adopted or amended by a majority vote of the managers, 
  8.25  after public notice and hearing.  Rules must be signed by the 
  8.26  secretary of the board of managers and recorded in the board of 
  8.27  managers' official minute book. 
  8.28     (b) Prior to adoption, the proposed rule or amendment to 
  8.29  the rule must be submitted to the board for review and comment.  
  8.30  The board's review shall be considered advisory.  The board 
  8.31  shall have 45 days from receipt of the proposed rule or 
  8.32  amendment to the rule to provide its comments in writing to the 
  8.33  watershed district.  
  8.34     (c) For each county affected by the watershed district, the 
  8.35  managers must publish a notice of hearings and adopted rules in 
  8.36  one or more legal newspapers published in the county and 
  9.1   generally circulated in the watershed district.  The managers 
  9.2   must file adopted rules with the county recorder of each county 
  9.3   affected by the watershed district and the board. 
  9.4      (c) (d) The managers must mail a copy of the rules to the 
  9.5   governing body of each municipality affected by the watershed 
  9.6   district.  
  9.7      Sec. 22.  Minnesota Statutes 1994, section 103D.351, is 
  9.8   amended to read: 
  9.9      103D.351 [ANNUAL REPORT.] 
  9.10     (a) The managers must prepare a yearly report of the 
  9.11  financial conditions of the watershed district, the status of 
  9.12  all projects, the business transacted by the watershed district, 
  9.13  other matters affecting the interests of the watershed district, 
  9.14  and a discussion of the managers' plans for the succeeding year. 
  9.15     (b) Copies of the report must be transmitted to the 
  9.16  secretary of the board of water and soil resources, the 
  9.17  commissioner, and the director within a reasonable time.  
  9.18     Sec. 23.  Minnesota Statutes 1994, section 103D.401, 
  9.19  subdivision 1, is amended to read: 
  9.20     Subdivision 1.  [CONTENTS.] (a) The managers must adopt a 
  9.21  watershed management plan for any or all of the purposes for 
  9.22  which a watershed district may be established.  The watershed 
  9.23  management plan must give a narrative description of existing 
  9.24  water and water-related problems within the watershed district, 
  9.25  possible solutions to the problems, and the general objectives 
  9.26  of the watershed district.  The watershed management plan must 
  9.27  also conform closely with watershed management plan guidelines 
  9.28  as adopted and amended from time to time by the board of water 
  9.29  and soil resources.  
  9.30     (b) The watershed management plan may include a separate 
  9.31  section on proposed projects.  If the watershed district is 
  9.32  within the metropolitan area, the separate section of proposed 
  9.33  projects or petitions for projects to be undertaken according to 
  9.34  the watershed management plan is a comprehensive plan of the 
  9.35  watershed district for purposes of review by the metropolitan 
  9.36  council under section 473.165.  
 10.1      Sec. 24.  Minnesota Statutes 1994, section 103D.401, 
 10.2   subdivision 2, is amended to read: 
 10.3      Subd. 2.  [REVIEW.] The managers must send a copy of the 
 10.4   proposed watershed management plan to the county auditor of each 
 10.5   county affected by the watershed district, the secretary of the 
 10.6   board, the commissioner, the director, the governing body of 
 10.7   each municipality affected by the watershed district, and soil 
 10.8   and water conservation districts affected by the watershed 
 10.9   district.  For a watershed district within the metropolitan 
 10.10  area, a copy of the proposed watershed management plan must also 
 10.11  be submitted to the metropolitan council.  
 10.12     Sec. 25.  Minnesota Statutes 1994, section 103D.405, 
 10.13  subdivision 1, is amended to read: 
 10.14     Subdivision 1.  [REQUIREMENTS.] (a) The managers and the 
 10.15  board must revise the watershed management plan for the 
 10.16  watershed district at least once every ten years after the 
 10.17  original watershed management plan is approved.  The revised 
 10.18  watershed management plan of the district must conform closely 
 10.19  with adopted watershed management plan guidelines of the board 
 10.20  of water and soil resources.  
 10.21     (b) The managers must consider inclusion of at least 
 10.22  include the following items in the revised watershed management 
 10.23  plan: 
 10.24     (1) updates and supplements of the existing hydrological 
 10.25  and other statistical data of the watershed district; 
 10.26     (2) specific projects and programs to be completed 
 10.27  considered for implementation; 
 10.28     (3) a statement of the extent that the purposes for which 
 10.29  the watershed district had been established have been 
 10.30  accomplished; 
 10.31     (4) a description of problems requiring future action by 
 10.32  the watershed district; 
 10.33     (5) a summary of completed studies on active or planned 
 10.34  projects, including financial data; and 
 10.35     (6) an analysis of the effectiveness of the watershed 
 10.36  district's rules and permits in achieving its water management 
 11.1   objectives in the watershed district.  
 11.2      (c) A revised watershed management plan must be 
 11.3   transmitted, reviewed, recommended, and approved as provided in 
 11.4   subdivisions 2 to 4 and 6.  
 11.5      Sec. 26.  Minnesota Statutes 1994, section 103D.515, 
 11.6   subdivision 4, is amended to read: 
 11.7      Subd. 4.  [APPROVAL OF RIGHTS TRANSFER.] Leases, 
 11.8   assignments, permits, or contracts for the use of water shall be 
 11.9   entered into only after the managers have reported to the board 
 11.10  the terms and conditions of the lease, permit, or contract 
 11.11  relative to the use of any watershed district property.  The 
 11.12  secretary of the board shall give notice of the contract to all 
 11.13  parties interested, by mail, and shall have notice of the 
 11.14  application published.  The notice must state the purpose of the 
 11.15  application and the time and place of hearing on it.  At the 
 11.16  time of hearing the board shall hear all interested persons for 
 11.17  or against the proposed contract and make an order accordingly 
 11.18  on conditions and restrictions necessary to protect the interest 
 11.19  of the watershed district and of the public.  
 11.20     Sec. 27.  Minnesota Statutes 1994, section 103D.531, is 
 11.21  amended to read: 
 11.22     103D.531 [CONTINUANCE OF HEARINGS.] 
 11.23     If an order has been made and notice given for a hearing in 
 11.24  a proceeding under this chapter, and the board, managers, or 
 11.25  court fail to appear at the time and place specified, the 
 11.26  secretary of the board or the managers, or the court 
 11.27  administrator of the district court shall continue the hearing 
 11.28  to another date as necessary and notify the board, managers, or 
 11.29  the court of the continuance and the date of hearing.  The 
 11.30  matter shall be continued to that date without affecting the 
 11.31  jurisdiction of the board, the managers, or the court.  
 11.32     Sec. 28.  Minnesota Statutes 1994, section 103D.535, 
 11.33  subdivision 1, is amended to read: 
 11.34     Subdivision 1.  [WHAT CAN BE APPEALED.] (a) Any party alone 
 11.35  or jointly may appeal to the district court or to the board an 
 11.36  order of the managers made in a proceeding relating to a project 
 12.1   and entered in the watershed district's record that determines: 
 12.2      (1) the amount of benefits determined; 
 12.3      (2) the amount of damages allowed; 
 12.4      (3) the allowance of fees or expenses in any proceedings; 
 12.5      (4) a matter in the proceeding that affects a substantial 
 12.6   right; or 
 12.7      (5) an order of the managers authorizing or refusing to 
 12.8   establish a project in whole or in part. 
 12.9      (b) Actions of the managers that do not relate to projects, 
 12.10  including actions related to permits and actions to enforce 
 12.11  watershed district rules, are not reviewable under this section. 
 12.12     (c) Projects initiated and financed by watershed districts, 
 12.13  wholly within the metropolitan area, under a state-approved and 
 12.14  locally adopted surface water management plan under section 
 12.15  103B.201 are not reviewable under this section.  
 12.16     Sec. 29.  Minnesota Statutes 1994, section 103D.535, 
 12.17  subdivision 4, is amended to read: 
 12.18     Subd. 4.  [APPEALS CAN INVOLVE PROPERTY OTHER THAN 
 12.19  APPELLANT'S OWN.] (a) A person or political subdivision 
 12.20  appealing the amount of benefits or damages may include and have 
 12.21  considered and determined benefits or damages affecting property 
 12.22  other than that person's or political subdivision's own property.
 12.23     (b) Notice of the appeal must be served on:  
 12.24     (1) the owner or occupant of the property not owned by the 
 12.25  appellant or on the attorney who represented the other owner in 
 12.26  the proceedings; 
 12.27     (2) the auditor of the county where the property is 
 12.28  located; and 
 12.29     (3) on the court administrator of the district court of the 
 12.30  county where the principal place of business of the watershed 
 12.31  district is located, or on the secretary of the board.  
 12.32     Sec. 30.  Minnesota Statutes 1994, section 103D.535, 
 12.33  subdivision 5, is amended to read: 
 12.34     Subd. 5.  [NOTICE OF APPEAL.] (a) Before the appeal is 
 12.35  heard by the court or board, the appellant must file a notice of 
 12.36  appeal with the court administrator of the district court or the 
 13.1   secretary of the board.  The appeal must:  
 13.2      (1) be filed within 30 days of the date of the final order; 
 13.3      (2) state the grounds upon which the appeal is taken; and 
 13.4      (3) be accompanied by an appeal bond of at least $250 to 
 13.5   the watershed district where the property is located.  
 13.6      (b) The bond must be approved by the court administrator of 
 13.7   the district court or the secretary of the board where the 
 13.8   appeal is filed.  The bond must be conditioned that the 
 13.9   appellant will: 
 13.10     (1) make the appeal; 
 13.11     (2) pay all costs and disbursements that may be adjudged 
 13.12  against the appellant; and 
 13.13     (3) comply with the order of the court or of the board 
 13.14  where the appeal is filed.  
 13.15     Sec. 31.  Minnesota Statutes 1994, section 103D.537, is 
 13.16  amended to read: 
 13.17     103D.537 [APPEALS OF RULES, PERMIT DECISIONS, AND ORDERS 
 13.18  NOT INVOLVING PROJECTS.] 
 13.19     (a) Except as provided in section 103D.535, an interested 
 13.20  party may appeal a rule, permit decision, or order made by the 
 13.21  managers by a declaratory judgment action brought under chapter 
 13.22  555 or by appeal to the board.  An interested party may appeal a 
 13.23  rule made by the managers by a declaratory judgment action 
 13.24  brought under chapter 555 or by appeal to the board.  The 
 13.25  decision on appeal must be based on the record made in the 
 13.26  proceeding before the managers.  An appeal of a permit 
 13.27  decision or order must be filed within 30 days of the managers' 
 13.28  decision. 
 13.29     (b) By January 1, 1993 1997, the board shall adopt rules 
 13.30  governing appeals to the board under paragraph (a).  A decision 
 13.31  of the board on appeal is subject to judicial review under 
 13.32  sections 14.63 to 14.69. 
 13.33     Sec. 32.  [103D.539] [INFORMAL RESOLUTION OF DISPUTES.] 
 13.34     An interested party may request a meeting with the dispute 
 13.35  resolution committee of the board of water and soil resources to 
 13.36  informally resolve a dispute before initiating a declaratory 
 14.1   judgment action or an appeal under sections 103D.535 and 
 14.2   103D.537.  
 14.3      Sec. 33.  Minnesota Statutes 1994, section 103D.611, 
 14.4   subdivision 1, is amended to read: 
 14.5      Subdivision 1.  [PROJECT PLAN TO DIRECTOR AND BOARD.] If a 
 14.6   project is to be constructed within the watershed district under 
 14.7   a contract between the watershed district and the state or the 
 14.8   federal government, and the cost of construction or 
 14.9   implementation is to be paid by the governmental agency but the 
 14.10  rights-of-way, legal, and general expenses of the improvement 
 14.11  are to be paid by the watershed district, the managers shall 
 14.12  forward a copy of the project plan to the board and the 
 14.13  director.  The director shall prepare a director's advisory 
 14.14  report and the board shall prepare a board's advisory report.  
 14.15     Sec. 34.  Minnesota Statutes 1994, section 103D.611, 
 14.16  subdivision 4, is amended to read: 
 14.17     Subd. 4.  [APPRAISAL.] (a) After authorizing the project, 
 14.18  the managers shall appoint three disinterested resident owners 
 14.19  of the state to act as appraisers.  
 14.20     (b) After the appraisers sign an oath to faithfully and 
 14.21  impartially perform their duties, they shall, with or without 
 14.22  the engineer, determine the benefits and damages to property 
 14.23  affected by the proposed project.  The appraisers shall make a 
 14.24  detailed statement and file the statement with the managers 
 14.25  showing:  
 14.26     (1) the actual damages that have resulted or will result to 
 14.27  individuals, property, or corporations from the construction or 
 14.28  implementation of the project; and 
 14.29     (2) a list of property, including highways and 
 14.30  corporations, receiving actual benefits by way of drainage, 
 14.31  control of flood waters, or other means authorized in this 
 14.32  chapter.  
 14.33     Sec. 35.  Minnesota Statutes 1994, section 103D.611, 
 14.34  subdivision 5, is amended to read: 
 14.35     Subd. 5.  [HEARING ON APPRAISERS' REPORT.] (a) After the 
 14.36  appraisers' report and the plans and engineering data prepared 
 15.1   by the governmental agency are filed with the managers, the 
 15.2   managers shall prepare a detailed statement of all costs, 
 15.3   including damages, to be incurred by the watershed district in 
 15.4   construction or implementation of the project.  
 15.5      (b) The managers shall order a time and place within the 
 15.6   watershed district for a hearing on the appraisers' report by 35 
 15.7   days after the detailed statement of costs is prepared.  The 
 15.8   managers shall give notice by publication and mailing as 
 15.9   provided in subdivision 1 for a hearing on a petition.  At the 
 15.10  time and place specified in the notice, the managers shall hear 
 15.11  all parties interested for and against confirming the 
 15.12  appraisers' report.  
 15.13     (c) The managers may order and direct the modification of 
 15.14  the assessment of benefits and damages, and amend or change the 
 15.15  list of properties reported as benefited or damaged.  If the 
 15.16  amended reports include property not included in the original 
 15.17  report, the managers shall adjourn and publish and mail in the 
 15.18  manner for the original notice, the proper notice concerning the 
 15.19  property not included in the previous notice.  
 15.20     (d) If upon full hearing the managers find that the 
 15.21  benefits resulting from the construction or implementation will 
 15.22  be greater than the assessments including damages they shall 
 15.23  confirm the appraisers' report.  
 15.24     (e) Persons or political subdivisions affected by the order 
 15.25  may appeal the order under this chapter.  
 15.26     Sec. 36.  Minnesota Statutes 1994, section 103D.621, 
 15.27  subdivision 4, is amended to read: 
 15.28     Subd. 4.  [ALTERNATIVE POWER.] With the concurrence of the 
 15.29  governing bodies of the cities and the town boards of the towns 
 15.30  where the drainage system is located, the managers may improve 
 15.31  and repair a drainage system under the power granted to them in 
 15.32  this chapter notwithstanding any provision of chapter 103E.  
 15.33     Sec. 37.  Minnesota Statutes 1994, section 103D.625, 
 15.34  subdivision 3, is amended to read: 
 15.35     Subd. 3.  [PROCEDURE FOR REPAIR OR IMPROVEMENT.] After the 
 15.36  transfer is ordered, all proceedings for repair and maintenance 
 16.1   must conform to chapter 103E, except for repairs and maintenance 
 16.2   done pursuant to section 103D.621, subdivision 4.  
 16.3      Sec. 38.  Minnesota Statutes 1994, section 103D.625, 
 16.4   subdivision 4, is amended to read: 
 16.5      Subd. 4.  [CONSTRUCTION OR IMPROVEMENT.] Construction of 
 16.6   new drainage systems or improvements of existing drainage 
 16.7   systems in the watershed district must be initiated by filing a 
 16.8   petition with the managers.  The proceedings for the 
 16.9   construction or improvement of drainage systems in the watershed 
 16.10  district must conform to chapter 103E, except for repairs and 
 16.11  maintenance done pursuant to section 103D.621, subdivision 4.  
 16.12     Sec. 39.  Minnesota Statutes 1994, section 103D.631, 
 16.13  subdivision 2, is amended to read: 
 16.14     Subd. 2.  [MAINTENANCE FUND.] (a) The cost of normal or 
 16.15  routine maintenance of the projects of the watershed district, 
 16.16  and the cost of removing obstructions and accumulations of 
 16.17  foreign substances from a drainage system, shall be paid from 
 16.18  the maintenance fund on the order of the managers.  
 16.19     (b) The managers may assess all the parcels of property and 
 16.20  municipal corporations previously assessed for benefits in 
 16.21  proceedings for the construction or implementation of the 
 16.22  project, to establish a maintenance fund for the project.  The 
 16.23  assessment must be made pro rata according to benefits 
 16.24  determined.  An assessment for the benefit of the maintenance 
 16.25  fund may not be made when the fund exceeds 20 percent of the 
 16.26  original cost of construction or implementation of the project.  
 16.27  The auditors of the affected counties shall file a tabular lien 
 16.28  statement covering the assessment in the office of the county 
 16.29  recorder for the county when the assessment order from the 
 16.30  managers is received.  
 16.31     (c) The assessment shall be collected as provided in the 
 16.32  order in the same manner as provided in section 103E.731.  
 16.33     (d) Before ordering the levy of an assessment for the 
 16.34  benefit of the maintenance fund, the managers may give notice of 
 16.35  a hearing on making the assessment and establishing the 
 16.36  maintenance fund.  
 17.1      Sec. 40.  Minnesota Statutes 1994, section 103D.635, 
 17.2   subdivision 1, is amended to read: 
 17.3      Subdivision 1.  [TECHNICAL AND COST SPECIFICATIONS.] The 
 17.4   managers shall order the engineer to prepare and submit to the 
 17.5   managers technical and cost specifications on the work necessary 
 17.6   to restore or improve the project to the desired level of 
 17.7   operating efficiency before ordering repairs other than normal 
 17.8   and routine maintenance if the engineer certifies to the 
 17.9   managers, in the annual report or otherwise, that: 
 17.10     (1) a project of the watershed district is in such a state 
 17.11  of disrepair that the project cannot be restored by normal and 
 17.12  routine maintenance to the same condition as when it was 
 17.13  originally constructed or subsequently improved; 
 17.14     (2) a ditch or channel must be widened or deepened; or 
 17.15     (3) a project of the watershed district must be altered or 
 17.16  improved to attain the level of operating efficiency 
 17.17  contemplated at the time of the original construction or 
 17.18  implementation.  
 17.19     Sec. 41.  Minnesota Statutes 1994, section 103D.635, 
 17.20  subdivision 3, is amended to read: 
 17.21     Subd. 3.  [ASSESSMENT.] (a) The managers may order the 
 17.22  repair or improvement and assess the cost against the benefited 
 17.23  properties if, after a hearing, the managers find that the 
 17.24  repair or improvement is in compliance with the plan, is 
 17.25  necessary to accomplish the purposes of this chapter, and that 
 17.26  the cost of the repair or improvement will not exceed its 
 17.27  benefits.  The cost of the repair or improvement shall be 
 17.28  apportioned and assessed pro rata upon all property that was 
 17.29  assessed for the construction or implementation of the project.  
 17.30     (b) A single levy for the repair or improvement may not 
 17.31  exceed the amount of benefits originally determined.  The 
 17.32  managers shall file a copy of the order for levy with the 
 17.33  auditor of each affected county.  The auditor shall extend the 
 17.34  levy against affected properties as in proceedings for the levy, 
 17.35  assessment, and collection of assessments in drainage 
 17.36  proceedings conducted under sections 103E.601 to 103E.631.  
 18.1      Sec. 42.  Minnesota Statutes 1994, section 103D.705, 
 18.2   subdivision 1, is amended to read: 
 18.3      Subdivision 1.  [REQUIREMENTS.] A project within the 
 18.4   watershed district that generally conforms with the watershed 
 18.5   management plan may be initiated by a project petition.  A 
 18.6   project petition must contain:  
 18.7      (1) a description of the proposed project and the purpose 
 18.8   to be accomplished; 
 18.9      (2) a description of the property where the proposed 
 18.10  project passes over or is located; 
 18.11     (3) a general description of the part of the watershed 
 18.12  district that will be affected, if less than the entire 
 18.13  watershed district; 
 18.14     (4) the necessity for the proposed project; 
 18.15     (5) a statement that the proposed project will be conducive 
 18.16  to public health, convenience, and welfare; and 
 18.17     (6) a statement that the petitioners will pay all costs and 
 18.18  expenses that may be incurred if the proceedings are dismissed 
 18.19  or a construction or implementation contract is not awarded for 
 18.20  the proposed project.  
 18.21     Sec. 43.  Minnesota Statutes 1994, section 103D.711, 
 18.22  subdivision 2, is amended to read: 
 18.23     Subd. 2.  [REQUIREMENTS.] (a) The engineer's report must 
 18.24  include findings and recommendations about the proposed 
 18.25  project.  If the engineer finds the improvement project 
 18.26  feasible, the engineer must provide a plan of the proposed 
 18.27  project as part of the report.  The plan must include: 
 18.28     (1) a map of the project area to be improved, drawn to 
 18.29  scale, showing the location of the proposed improvements, if 
 18.30  any; 
 18.31     (2) the estimated total cost of completing the project 
 18.32  including construction, operation, implementation, supervision, 
 18.33  and administrative costs; 
 18.34     (3) the acreage required as right-of-way listed by each lot 
 18.35  and 40-acre tract or fraction of the lot or tract under separate 
 18.36  ownership, if required to implement the project; and 
 19.1      (4) other details and information to inform the managers of 
 19.2   the practicability and necessity of the proposed project with 
 19.3   the engineer's recommendations on these matters.  
 19.4      (b) The map of the area must include: 
 19.5      (1) the location and adequacy of the outlet, if the project 
 19.6   is related to drainage; 
 19.7      (2) the watershed of the project area; 
 19.8      (3) the location of existing highways, bridges, and 
 19.9   culverts; 
 19.10     (4) the property, highways, and utilities affected by the 
 19.11  project with the names of the known property owners; 
 19.12     (5) the location of public land and water affected by the 
 19.13  project; and 
 19.14     (6) other physical characteristics of the watershed 
 19.15  necessary to understand the area.  
 19.16     Sec. 44.  Minnesota Statutes 1994, section 103D.715, 
 19.17  subdivision 3, is amended to read: 
 19.18     Subd. 3.  [DUTIES.] The appraisers shall with or without 
 19.19  the engineer determine the benefits and damages to property 
 19.20  affected by the proposed project, including property owned by 
 19.21  the state or a state agency, highways, and other property likely 
 19.22  to be affected by the proposed project or that may be used or 
 19.23  taken for construction, implementation, or maintenance.  
 19.24     Sec. 45.  Minnesota Statutes 1994, section 103D.715, 
 19.25  subdivision 4, is amended to read: 
 19.26     Subd. 4.  [BENEFITS AND DAMAGES TO STATE LAND.] For all 
 19.27  watershed district projects, benefits and damages to property 
 19.28  owned by the state or a state agency, held and used for the 
 19.29  purposes described in sections 103E.025 and 103E.315, 
 19.30  subdivision 1, must be determined as using the procedure 
 19.31  provided in sections 103E.025 and 103E.315, subdivision 1, as 
 19.32  they are applicable.  If a state permit is required from the 
 19.33  commissioner to construct the project, state land may not be 
 19.34  taken, damaged, or benefited until the permit is issued. 
 19.35     Sec. 46.  Minnesota Statutes 1994, section 103D.721, 
 19.36  subdivision 2, is amended to read: 
 20.1      Subd. 2.  [DETERMINATION.] After the engineer's report is 
 20.2   filed, the managers, with the assistance of the engineer, shall 
 20.3   determine the benefits or damages to the property affected by 
 20.4   the proposed project, including property owned by the state or a 
 20.5   state agency, highways, and other property likely to be affected 
 20.6   by the proposed improvement or that may be used or taken for 
 20.7   construction, implementation, or maintenance.  
 20.8      Sec. 47.  Minnesota Statutes 1994, section 103D.721, 
 20.9   subdivision 3, is amended to read: 
 20.10     Subd. 3.  [STATE PROPERTY.] For all watershed district 
 20.11  projects, benefits and damages to property owned by the state or 
 20.12  a state agency that is held and used for the purposes described 
 20.13  in sections 103E.025 and 103E.315, subdivision 1, shall be 
 20.14  determined as using the procedure provided in sections 103E.025 
 20.15  and 103E.315, subdivision 1, as they are applicable.  If a state 
 20.16  permit is required from the commissioner to construct the 
 20.17  project, state land may not be taken, damaged, or benefited 
 20.18  until the permit is issued. 
 20.19     Sec. 48.  Minnesota Statutes 1994, section 103D.741, 
 20.20  subdivision 1, is amended to read: 
 20.21     Subdivision 1.  [PUBLISHED FINAL HEARING NOTICE.] The 
 20.22  managers shall give notice by publication of the final hearing.  
 20.23  The final hearing notice must contain:  
 20.24     (1) a statement of the pendency of the petition or 
 20.25  resolution; 
 20.26     (2) the time and place for hearing; 
 20.27     (3) a statement that the engineer's report and appraisers' 
 20.28  report, including the plans, have been filed with the managers 
 20.29  and are subject to inspection; 
 20.30     (4) a brief description of the proposed project; 
 20.31     (5) a description of the properties benefited or damaged, 
 20.32  the names of the owners of the properties, the public and other 
 20.33  corporations affected by the project as shown by the engineer's 
 20.34  report and appraisers' report or may include a map of the 
 20.35  affected area in lieu of the names of the owners and of the 
 20.36  descriptions of the properties affected by the project; and 
 21.1      (6) a statement requiring all parties interested in the 
 21.2   proposed project to appear before the managers at the time and 
 21.3   place designated in the final hearing notice to present 
 21.4   objections, and to show why an order should not be made by the 
 21.5   managers granting the petition, confirming the reports of the 
 21.6   engineer and appraisers, and ordering the establishment and 
 21.7   construction or implementation of the project.  
 21.8      Sec. 49.  Minnesota Statutes 1994, section 103D.745, 
 21.9   subdivision 2, is amended to read: 
 21.10     Subd. 2.  [MODIFICATION OF REPORTS.] (a) The managers may 
 21.11  order and direct the modification of:  
 21.12     (1) the engineer's report within the scope of the watershed 
 21.13  management plan for the watershed district; 
 21.14     (2) the assessment of benefits and damages; and 
 21.15     (3) amendment or change of the list of property reported as 
 21.16  assessable for construction or implementation and maintenance.  
 21.17     (b) If the amended engineer's report and appraisers' report 
 21.18  includes property not included in the original reports, the 
 21.19  managers shall adjourn the hearing and have an amended notice 
 21.20  published and mailed with the proper reference to all property 
 21.21  as amended by the managers.  
 21.22     Sec. 50.  Minnesota Statutes 1994, section 103D.745, 
 21.23  subdivision 3, is amended to read: 
 21.24     Subd. 3.  [ESTABLISHMENT OF PROJECT.] (a) The managers 
 21.25  shall make findings, order and direct construction or 
 21.26  implementation of the project, and confirm the engineer's report 
 21.27  and the findings of the appraisers and the appraisers' report 
 21.28  if, at the end of the final hearing, the managers find that the 
 21.29  project will:  
 21.30     (1) be conducive to public health; 
 21.31     (2) promote the general welfare; 
 21.32     (3) be in compliance with this chapter; and 
 21.33     (4) result in benefits that will be greater than the cost 
 21.34  of the construction or implementation and damages.  
 21.35     (b) The order may authorize the construction or 
 21.36  implementation of the project as a whole or authorize different 
 22.1   parts of the project to be constructed separately.  
 22.2      (c) The managers shall order the engineer to proceed with 
 22.3   making the necessary surveys and preparing plans and 
 22.4   specifications that are needed to construct the project and 
 22.5   report the results of the surveys and plans to the managers.  
 22.6      Sec. 51.  Minnesota Statutes 1994, section 103D.811, 
 22.7   subdivision 1, is amended to read: 
 22.8      Subdivision 1.  [CALL FOR BIDS.] After an establishment 
 22.9   order has been made by the managers directing the establishment 
 22.10  of a project, the managers shall call for bids for the 
 22.11  construction or implementation of the work and give notice by 
 22.12  publication specifying the time and place when the bids will be 
 22.13  opened for awarding a contract for the construction or 
 22.14  implementation of the project.  The contract may be awarded in 
 22.15  sections or as a whole, as directed by the managers.  
 22.16     Sec. 52.  Minnesota Statutes 1994, section 103D.811, 
 22.17  subdivision 3, is amended to read: 
 22.18     Subd. 3.  [AWARDING OF CONTRACT.] (a) At a time and place 
 22.19  specified in the bid notice, the managers may accept or reject 
 22.20  any or all bids and may award the contract to the lowest 
 22.21  responsible bidder.  The bidder to whom the contract is to be 
 22.22  awarded must give a bond, with ample security, conditioned by 
 22.23  satisfactory completion of the contract.  
 22.24     (b) Bids must not be considered which in the aggregate 
 22.25  exceed by more than 30 percent the total estimated cost of 
 22.26  construction or implementation.  
 22.27     (c) The contract must be in writing and be accompanied by 
 22.28  or refer to the plans and specifications for the work to be done 
 22.29  as prepared by the engineer for the watershed district.  The 
 22.30  plans and specifications shall become a part of the contract.  
 22.31     (d) The contract shall be approved by the managers and 
 22.32  signed by the president, secretary, and contractor.  
 22.33     Sec. 53.  Minnesota Statutes 1994, section 103D.901, 
 22.34  subdivision 2, is amended to read: 
 22.35     Subd. 2.  [COUNTY FUNDING.] After the assessment statement 
 22.36  is filed with the auditor, the county board of each affected 
 23.1   county shall provide funds to meet its proportionate share of 
 23.2   the total cost of the project, as shown by the engineer's report 
 23.3   and order of the managers.  The county may issue bonds of the 
 23.4   county in the manner provided by section 103E.635.  If an 
 23.5   improvement is to be constructed under section 103D.611, the 
 23.6   provisions of section 103E.635 requiring the county board to 
 23.7   award a contract for construction or implementation before 
 23.8   issuing bonds is not applicable to bonds issued to provide the 
 23.9   funds required to be furnished by this section.  
 23.10     Sec. 54.  Minnesota Statutes 1994, section 103D.901, 
 23.11  subdivision 4, is amended to read: 
 23.12     Subd. 4.  [ASSESSMENT MAY NOT EXCEED BENEFITS.] (a) An 
 23.13  assessment may not be levied against property or corporations 
 23.14  benefited under this chapter in excess of the amount of benefits 
 23.15  received as set by the order of the managers authorizing the 
 23.16  construction or implementation of the project or subsequently 
 23.17  determined on appeal. 
 23.18     (b) If the damages for a project financed by special 
 23.19  assessment are awarded and confirmed, the managers must 
 23.20  determine that the project's benefits exceed the total costs, 
 23.21  including damages awarded.  
 23.22     (c) The managers shall amend the project's statement filed 
 23.23  with the county auditor to reflect the amount of damages awarded.
 23.24     Sec. 55.  Minnesota Statutes 1994, section 103D.901, 
 23.25  subdivision 5, is amended to read: 
 23.26     Subd. 5.  [DAMAGES PAID BEFORE ENTERING PROPERTY.] Before 
 23.27  entering property for which damages were awarded to begin 
 23.28  construction or implementation of the project, the managers 
 23.29  shall pay the amount of damages awarded less any assessment 
 23.30  against the property from the funds provided by the county board 
 23.31  under subdivision 3.  If the amount of damages is appealed, 
 23.32  damages may not be paid until the final determination of the 
 23.33  appeal.  
 23.34     Sec. 56.  Minnesota Statutes 1994, section 103D.905, 
 23.35  subdivision 3, is amended to read: 
 23.36     Subd. 3.  [ADMINISTRATIVE FUND.] An administrative fund, 
 24.1   consisting of an ad valorem tax levy, may not exceed 0.02418 
 24.2   percent of taxable market value, or $125,000, whichever is 
 24.3   less.  The money in the fund shall be used for general 
 24.4   administrative expenses and for the construction or 
 24.5   implementation and maintenance of projects of common benefit to 
 24.6   the watershed district.  The managers may make an annual levy 
 24.7   for the administrative fund as provided in section 103D.911.  In 
 24.8   addition to the annual administrative levy, the managers may 
 24.9   annually levy a tax not to exceed 0.00798 percent of taxable 
 24.10  market value for a period not to exceed 15 consecutive years to 
 24.11  pay the cost attributable to the basic water management features 
 24.12  of projects initiated by petition of a municipality of the 
 24.13  watershed district.  
 24.14     Sec. 57.  Minnesota Statutes 1994, section 103D.905, 
 24.15  subdivision 5, is amended to read: 
 24.16     Subd. 5.  [CONSTRUCTION OR IMPLEMENTATION FUND.] (a) A 
 24.17  construction or implementation fund consists of:  
 24.18     (1) the proceeds of the sale of county bonds; 
 24.19     (2) construction or implementation loans from any agency of 
 24.20  the federal government; and 
 24.21     (3) special assessments to be levied to supply funds for 
 24.22  the construction or implementation of the projects of the 
 24.23  watershed district, including reservoirs, ditches, dikes, 
 24.24  canals, channels, and other works, and the expenses incident to 
 24.25  and connected with the construction or implementation. 
 24.26     (b) Construction or implementation loans from an agency of 
 24.27  the federal government may be repaid from money collected by 
 24.28  special assessments on properties benefited by the project.  
 24.29     Sec. 58.  Minnesota Statutes 1994, section 103D.921, 
 24.30  subdivision 1, is amended to read: 
 24.31     Subdivision 1.  [PETITION.] (a) If a petition has been 
 24.32  filed with the managers for the construction or implementation 
 24.33  of a project within the watershed district, the managers may 
 24.34  file a petition with the district court in the county where the 
 24.35  watershed district has its principal place of business asking 
 24.36  that a preliminary expense fund be created for the watershed 
 25.1   district.  
 25.2      (b) The managers may subsequently amend or supplement the 
 25.3   petition if necessary.  At least ten days' notice of a petition 
 25.4   or amended or supplementary petition must be given to the 
 25.5   auditor of each county affected by the proposed project.  
 25.6      (c) The preliminary fund must be of a size that is 
 25.7   proportionate to the needs of the watershed district for 
 25.8   preliminary work on the proposed project.  
 25.9      Sec. 59.  Minnesota Statutes 1994, section 103D.921, 
 25.10  subdivision 3, is amended to read: 
 25.11     Subd. 3.  [USE OF FUND.] The preliminary fund must be used 
 25.12  by the managers for preliminary work.  If the managers incur 
 25.13  expenses for surveys or other preliminary work on a proposed 
 25.14  project, all expenses connected with the work shall be included 
 25.15  in the cost of construction or implementation of the proposed 
 25.16  project.  If construction or implementation of the project is 
 25.17  authorized by the managers, the money advanced from the 
 25.18  preliminary fund shall be repaid from assessments for the 
 25.19  project.  
 25.20     Sec. 60.  Minnesota Statutes 1994, section 103D.925, is 
 25.21  amended to read: 
 25.22     103D.925 [WARRANTS.] 
 25.23     The managers may issue warrants of the watershed district 
 25.24  to pay contracts for the construction or implementation of 
 25.25  projects, ordinary general expenses, and expenses incurred in 
 25.26  making repairs that have been approved by the managers, only if 
 25.27  there are sufficient funds available for payment in the 
 25.28  watershed district treasury. 
 25.29     Sec. 61.  Minnesota Statutes 1994, section 117.011, is 
 25.30  amended to read: 
 25.31     117.011 [RIGHT OF EMINENT DOMAIN.] 
 25.32     All bodies, public or private, who have the right of 
 25.33  eminent domain, when exercising the right, shall do so in the 
 25.34  manner prescribed by this chapter, even though a different 
 25.35  procedure may be provided by charter provisions, ordinance or 
 25.36  statute, but nothing herein shall apply to the taking of 
 26.1   property under laws relating to drainage or to town roads when 
 26.2   those laws themselves expressly provide for the taking and 
 26.3   specifically prescribe the procedure.  The taking of property 
 26.4   for a project undertaken by a watershed district under chapter 
 26.5   103D or for a project undertaken by a drainage authority under 
 26.6   chapter 103E may be carried out under the procedure provided by 
 26.7   those chapters.