1.1                          A bill for an act 
  1.2             relating to drainage; modifying the requirement for 
  1.3             approval of drainage activities; allowing transfer of 
  1.4             a public drainage system to a water management 
  1.5             authority; defining water management authority; 
  1.6             amending Minnesota Statutes 2000, sections 103E.005, 
  1.7             subdivision 16, by adding a subdivision; 103E.011, 
  1.8             subdivision 3; proposing coding for new law in 
  1.9             Minnesota Statutes, chapter 103E. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 103E.005, 
  1.12  subdivision 16, is amended to read: 
  1.13     Subd. 16.  [MUNICIPALITY.] "Municipality" means a statutory 
  1.14  or home rule charter city or a town having urban powers under 
  1.15  section 368.01, subdivision 1 or 1a.  For purposes of sections 
  1.16  103E.315, 103E.611, and 103E.615, municipality includes a water 
  1.17  management authority to which a portion of a drainage system is 
  1.18  transferred under section 103E.812. 
  1.19     Sec. 2.  Minnesota Statutes 2000, section 103E.005, is 
  1.20  amended by adding a subdivision to read: 
  1.21     Subd. 29.  [WATER MANAGEMENT AUTHORITY.] "Water management 
  1.22  authority" means a county or municipality, watershed district, 
  1.23  watershed management organization, storm water management 
  1.24  district, lake improvement district, subordinate service 
  1.25  district, joint powers organization or other special district 
  1.26  organized and formed according to law for the purpose of 
  1.27  managing storm, surface, and flood waters, or with the authority 
  2.1   to manage storm, surface, and flood waters. 
  2.2      Sec. 3.  Minnesota Statutes 2000, section 103E.011, 
  2.3   subdivision 3, is amended to read: 
  2.4      Subd. 3.  [PERMISSION OF COMMISSIONER FOR WORK IN PUBLIC 
  2.5   WATERS; APPLICATION.] (a) The drainage authority must receive 
  2.6   permission from the commissioner for a drainage project to:  
  2.7      (1) remove, construct, or alter a dam affecting public 
  2.8   waters; 
  2.9      (2) establish, raise, or lower the level of public waters; 
  2.10  or 
  2.11     (3) drain any portion of a public water.  
  2.12     (b) The petitioners for a proposed drainage project or the 
  2.13  drainage authority may apply to the commissioner for permission 
  2.14  to do work in public waters or for the determination of public 
  2.15  waters status of a water body or watercourse. 
  2.16     Sec. 4.  [103E.812] [TRANSFER OF ALL OR PART OF DRAINAGE 
  2.17  SYSTEM.] 
  2.18     Subdivision 1.  [DRAINAGE LIEN PAYMENT PERIOD MUST EXPIRE.] 
  2.19  After the period originally fixed or subsequently extended to 
  2.20  pay the assessment of the drainage lien expires, all or part of 
  2.21  a drainage system may be transferred from the jurisdiction of 
  2.22  the drainage authority to a water management authority as 
  2.23  provided in this section. 
  2.24     Subd. 2.  [PETITIONERS.] (a) For drainage systems outside 
  2.25  of the seven-county metropolitan area, and outside of the 
  2.26  municipal boundaries of a statutory or home rule charter city, a 
  2.27  petition must be signed by at least 51 percent of the owners of 
  2.28  property assessed for the construction of the drainage system, 
  2.29  or portion of the drainage system proposed to be transferred, or 
  2.30  by the owners of not less than 51 percent of the area of the 
  2.31  property assessed for the drainage system, or portion of the 
  2.32  drainage system sought to be transferred.  The water management 
  2.33  authority to which the drainage system is to be transferred must 
  2.34  join the petition. 
  2.35     (b) For drainage systems wholly or partially within the 
  2.36  municipal boundaries of a statutory or home rule charter city, 
  3.1   the city may petition for transfer if the drainage system or 
  3.2   portion of the drainage system proposed to be transferred lies 
  3.3   within the boundaries of the city.  The water management 
  3.4   authority to which the drainage system is to be transferred must 
  3.5   join the petition. 
  3.6      (c) For drainage systems within the seven-county 
  3.7   metropolitan area and within the jurisdictional boundaries of an 
  3.8   existing water management authority, the water management 
  3.9   authority may petition for transfer if the drainage system or 
  3.10  portion of the drainage system proposed to be transferred lies 
  3.11  within the boundaries of the water management authority. 
  3.12     (d) For the purpose of the petition, the county is the 
  3.13  resident owner of all tax-forfeited property held by the state, 
  3.14  under chapter 282, and assessed benefits for the drainage 
  3.15  system, and the board may execute the petition for the county as 
  3.16  an owner.  This paragraph does not apply to lands acquired by 
  3.17  the state under chapter 84A.  
  3.18     Subd. 3.  [PETITION.] (a) The petition must designate the 
  3.19  drainage system, or portion thereof, proposed to be transferred 
  3.20  and show that the transfer is necessary for the orderly 
  3.21  management of storm, surface, or flood waters, including 
  3.22  management for water quality purposes. 
  3.23     (b) The petition must indicate the impact, if any, that the 
  3.24  transfer will have on properties utilizing the drainage system 
  3.25  for an outlet or otherwise benefiting from the existence of the 
  3.26  drainage system. 
  3.27     (c) The petition must include an engineering report, 
  3.28  prepared by the transferee water management authority, 
  3.29  establishing, for the record, the nature and extent of the 
  3.30  drainage easement occupied by the drainage system, and the 
  3.31  as-constructed, or subsequently improved, depth, grade, and 
  3.32  hydraulic capacity of the drainage system. 
  3.33     Subd. 4.  [FILING PETITION; JURISDICTION.] (a) If the 
  3.34  drainage system is administered by a county or joint county 
  3.35  drainage authority and if all property assessed for benefits in 
  3.36  the drainage system is in one county, the petition must be filed 
  4.1   with the auditor unless the petition is signed by the board, in 
  4.2   which case the petition must be made to the district court of 
  4.3   the county where the drainage system is located and filed with 
  4.4   the court administrator.  If the board, acting as the drainage 
  4.5   authority, is also the petitioning water management authority, 
  4.6   the petition must be made to the district court of the county 
  4.7   where the drainage system is located and filed with the court 
  4.8   administrator.  If property assessed for benefits is in two or 
  4.9   more counties, the petition must be filed with the auditor or 
  4.10  court administrator of either (1) the county where the portion 
  4.11  of the drainage system sought to be transferred exists; (2) the 
  4.12  county not petitioning for the transfer; or (3) the county where 
  4.13  the majority of the drainage system sought to be transferred 
  4.14  exists. 
  4.15     (b) If the drainage system is administered by the board of 
  4.16  managers of a watershed district, the petition must be filed 
  4.17  with the secretary of the watershed district.  If the watershed 
  4.18  district is also the petitioning water management authority, the 
  4.19  petition must be filed with the court administrator consistent 
  4.20  with the criteria in paragraph (a), clauses (1) to (3). 
  4.21     (c) When the petition is filed, the drainage authority in 
  4.22  consultation with the auditor or secretary, or the court 
  4.23  administrator with the approval of the court, shall set a time 
  4.24  and location for a hearing on the petition.  The auditor, 
  4.25  secretary, or court administrator shall give notice by mail and 
  4.26  publication of the time and location of the transfer hearing to 
  4.27  all persons interested.  The notice shall include a description 
  4.28  of the property owner's right to object under subdivision 5.  
  4.29  The drainage authority or the district court where the petition 
  4.30  is properly filed has jurisdiction of the petition. 
  4.31     Subd. 5.  [TRANSFER HEARING.] (a) At the hearing, the 
  4.32  drainage authority or court shall examine the petition and 
  4.33  determine whether it is sufficient and shall hear all interested 
  4.34  parties.  
  4.35     (b) If a property owner assessed benefits for the drainage 
  4.36  system appears and makes a written objection to the transfer of 
  5.1   the drainage system, the drainage authority or court shall 
  5.2   appoint a technical panel to examine the drainage system, the 
  5.3   property, and the proposed transfer and report to the drainage 
  5.4   authority or court.  The hearing must be adjourned to make the 
  5.5   examination and report and a date must be set to reconvene.  The 
  5.6   technical panel shall consist, at a minimum, of a representative 
  5.7   of the drainage authority, a representative of the commissioner, 
  5.8   a representative of the soil and water conservation district, a 
  5.9   representative of the board of water and soil resources, and a 
  5.10  viewer.  The technical panel shall proceed to examine the 
  5.11  drainage system, the property, and the property owner's 
  5.12  objections to the proposed transfer of the system and report as 
  5.13  soon as possible to the drainage authority or court with the 
  5.14  merits of the objections.  The technical panel shall also 
  5.15  determine the extent to which the transfer of the drainage 
  5.16  system will damage or take property.  Nongovernment employee 
  5.17  members of the technical panel must be compensated in the same 
  5.18  manner as viewers under section 103E.645, subdivision 3.  
  5.19     (c) The board of water and soil resources and the 
  5.20  commissioner, if requested by the drainage authority or court, 
  5.21  shall provide any technical assistance, including engineering, 
  5.22  surveys, hydrologic analyses, or water quality studies as 
  5.23  requested by the drainage authority or court. 
  5.24     (d) When the hearing is reconvened, the drainage authority 
  5.25  or court shall consider the technical panel's report and all 
  5.26  evidence offered.  If the drainage authority or court determines 
  5.27  that storm, surface, or flood waters along the drainage system 
  5.28  or within the benefited area of the drainage system, could be 
  5.29  better managed by a water management authority, it shall 
  5.30  authorize the transfer of the drainage system. 
  5.31     Subd. 6.  [COSTS RELATED TO TRANSFER AND TRANSFER 
  5.32  PROCEEDINGS.] Costs, including engineering and attorney's fees, 
  5.33  related to the proceedings to transfer a drainage system must be 
  5.34  paid by the proposed transferee water management authority.  If 
  5.35  the drainage authority or court orders that the drainage 
  5.36  authority should not be transferred, the drainage authority 
  6.1   shall reimburse the water management authority from the drainage 
  6.2   system account for the reasonable value of engineering work 
  6.3   conducted as part of the transfer proceedings. 
  6.4      Subd. 7.  [GUARANTEE OF OUTLET; NO COMPROMISE OF EXISTING 
  6.5   RIGHTS.] (a) Any proceeding to transfer all or part of a 
  6.6   drainage system to a water management authority must guarantee 
  6.7   an outlet for property assessed for benefits on the transferred 
  6.8   drainage system of at least equal hydraulic efficiency as that 
  6.9   provided by the transferred drainage system in its 
  6.10  as-constructed, or subsequently improved, state. 
  6.11     (b) The transfer of a drainage system to a water management 
  6.12  authority is not a compromise of any property right held by an 
  6.13  owner of assessed property on the transferred drainage system. 
  6.14     (c) A water management authority shall compensate any owner 
  6.15  of property assessed for benefits on the transferred drainage 
  6.16  system for the loss or impairment of any property right 
  6.17  occurring after transfer of the drainage system. 
  6.18     Subd. 8.  [EFFECT OF TRANSFER.] (a) After transfer of a 
  6.19  drainage system, or any part thereof, to a water management 
  6.20  authority, the drainage system ceases to be subject to 
  6.21  regulation under this chapter except that if only a portion of a 
  6.22  drainage system is transferred, the water management authority 
  6.23  may be assessed for improvements under section 103E.215 or 
  6.24  repairs under sections 103E.701 to 103E.711 in the manner 
  6.25  provided under sections 103E.315 and 103E.601 to 103E.615.  The 
  6.26  water management authority may manage water within its 
  6.27  jurisdictional boundaries according to whatever law controls the 
  6.28  function of the water management authority.  The transferred 
  6.29  drainage system shall become a work and a responsibility of the 
  6.30  transferee water management authority.  All responsibility of 
  6.31  the drainage authority for the transferred drainage system ends. 
  6.32     (b) Notwithstanding any law to the contrary, transfer of a 
  6.33  drainage system under this section does not in any way diminish, 
  6.34  compromise, or reduce the availability of exemptions for wetland 
  6.35  replacement under sections 103G.2212 to 103G.2372 or exceptions 
  6.36  to the requirements for public waters work permits under 
  7.1   sections 103G.241 to 103G.251 for activities conducted in the 
  7.2   transferred drainage system.  Activities conducted in the 
  7.3   transferred drainage system must continue to be eligible for all 
  7.4   exemptions and exceptions available for activities conducted in 
  7.5   drainage systems under sections 103G.2241 and 103G.245. 
  7.6      Subd. 9.  [EFFECT ON OTHER LAW.] This section does not 
  7.7   amend, supersede, or repeal any existing law providing for the 
  7.8   transfer of a drainage system under this chapter, chapter 103D, 
  7.9   or other law, but is supplementary to those laws.