HF 162

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:28 p.m.

1.1A bill for an act 1.2relating to waters; modifying drainage system provisions; amending Minnesota 1.3Statutes 2008, sections 103B.101, by adding a subdivision; 103E.065; 103E.227; 1.4103E.401, subdivision 3; 103E.505, subdivision 3; 103E.611, subdivision 1; 1.5103E.735, subdivision 1; 103E.805; proposing coding for new law in Minnesota 1.6Statutes, chapter 103E. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. Minnesota Statutes 2008, section 103B.101, is amended by adding a 1.9subdivision to read: 1.10     new text begin Subd. 13. new text end new text begin Drainage stakeholder coordination. new text end new text begin The Board of Water and Soil new text end 1.11 new text begin Resources shall work with drainage stakeholders to foster mutual understanding new text end 1.12 new text begin and provide recommendations for drainage system management and related water new text end 1.13 new text begin management, including recommendations for updating the drainage law in chapter 103E new text end 1.14 new text begin and other related provisions. The board may convene informal working groups or work new text end 1.15 new text begin teams to develop information, education, and recommendations. new text end 1.16    Sec. 2. Minnesota Statutes 2008, section 103E.065, is amended to read: 1.17103E.065 DRAINAGE INSPECTORS. 1.18In counties where constructed new text begin or watershed districts having new text end drainage systems have 1.19an aggregate cost of more than $50,000 new text begin constructed in accordance with this chapter new text end , the 1.20board new text begin drainage authority new text end shall appoint a competent person as county drainage inspector. 1.21The inspector may be the county highway engineer. The inspector shall examine the 1.22drainage systems designated by the board new text begin drainage authority new text end . The board new text begin drainage authority new text end 1.23shall specify the appointment period and compensation. 2.1    Sec. 3. Minnesota Statutes 2008, section 103E.227, is amended to read: 2.2103E.227 IMPOUNDING new text begin , REROUTING, new text end AND DIVERSION OF DRAINAGE 2.3SYSTEM WATERS. 2.4    Subdivision 1. Petition. (a) To conserve and make more adequate use of our water 2.5resources, a person, public or municipal corporation, governmental subdivision, the state 2.6or a department or agency of the state, the commissioner of natural resources, and the 2.7United States or any of its agencies, may petition for the installation of dams or other 2.8control works in drainage ditch systems to impound new text begin , reroute, new text end or divert new text begin drainage system new text end 2.9waters for beneficial use. The petition must be directed to the drainage authority where 2.10the drainage system is located. 2.11 new text begin (b) If the drainage system is under the jurisdiction of a county drainage authority, the new text end 2.12 new text begin petition must be filed with the auditor of the county. If the drainage system is under the new text end 2.13 new text begin jurisdiction of a joint county drainage authority, the petition must be filed with the county new text end 2.14 new text begin having the largest area of property in the drainage system, where the primary drainage new text end 2.15 new text begin system records are kept. If the system is under the jurisdiction of a watershed district, new text end 2.16 new text begin the petition must be filed with the secretary of the district. new text end 2.17(b) new text begin (c) new text end The petition must contain the location of the installation, new text begin concept new text end plans, and 2.18specifications for the proposed structure new text begin project, new text end and a map of new text begin that identifies new text end the areas 2.19likely to be affected by the impoundment or diversion new text begin project new text end . 2.20(c) new text begin (d) new text end The petitioner new text begin petition new text end shall agree to be responsible for the cost of installation 2.21and construction of the structure new text begin identify the sources of funds to be used to secure the new text end 2.22 new text begin necessary land rights and to construct the project and the amount and rationale for any new text end 2.23 new text begin drainage system funds requested new text end . 2.24(d) new text begin (e) new text end The petition new text begin petitioner or drainage authority new text end must also be accompanied by 2.25 new text begin acquire new text end a public waters work permit or a water use permit from the commissioner of 2.26natural resources if required under chapter 103G. 2.27    Subd. 2. Bond. (a) Upon filing the petition, the petitioners shall file a bond as 2.28provided in section 103E.202. 2.29(b) A bond is not required if the petition is filed by the state, a state agency 2.30or department, the commissioner of natural resources, the United States or any of its 2.31agencies, new text begin a soil and water conservation district, a watershed district, new text end or a municipality. 2.32    Subd. 3. Procedure to establish project. (a) After receiving the petition, new text begin and new text end bond, 2.33and permit, if required, the drainage authority must appoint an engineer to investigate the 2.34effect of the proposed installation and file a report of findings. 2.35(b) After filing of the engineer's report, notice must be given and a public hearing 2.36held as provided in section 103E.261. 3.1(c) If from new text begin at new text end the hearing it appears from the engineer's report and other evidence 3.2presented that the installation new text begin project new text end will be of a public or private benefit and that it 3.3will not impair the utility of the ditch new text begin drainage system new text end or deprive affected land owners 3.4of its benefit, the drainage authority shall make an order modifying the drainage system new text begin , new text end 3.5 new text begin to include the amount, if any, of drainage system funds approved for the project at the new text end 3.6 new text begin discretion of the drainage authority, new text end and issue a permit new text begin an order new text end authorizing its installation new text begin new text end 3.7 new text begin the project new text end . 3.8    Subd. 4. new text begin Permits and new text end flowage easements required. Before installing or 3.9constructing an impoundment or diversion new text begin the project new text end , the petitioner new text begin or drainage authority new text end 3.10shall obtain new text begin all required permits and all necessary new text end rights-of-way and flowage easements 3.11from owners of land to be affected by it. 3.12    Subd. 5. Assessment of new text begin Construction, operation, new text end maintenance new text begin , new text end and repair 3.13costs new text begin responsibilities new text end . The order of the drainage authority modifying the drainage 3.14system must provide that construction and later new text begin identify the parties responsible for new text end 3.15 new text begin construction, operation, and new text end maintenance and repairs of the drainage system modification 3.16and installation must be done by the petitioner without assessment of the cost to the 3.17property owners previously within the drainage system new text begin the amount, if any, of drainage new text end 3.18 new text begin system funds for the project new text end . new text begin If the part of the drainage system located within the project new text end 3.19 new text begin boundaries is in need of repairs, the petitioner's engineer shall estimate the cost at the time new text end 3.20 new text begin of petition of these separable repairs. The drainage authority shall consider the separable new text end 3.21 new text begin repair costs that will be avoided as a result of the petitioned project, as well as any other new text end 3.22 new text begin benefits of the project to the drainage system, when determining whether or how much to new text end 3.23 new text begin contribute to the petitioned project. new text end 3.24    Sec. 4. Minnesota Statutes 2008, section 103E.401, subdivision 3, is amended to read: 3.25    Subd. 3. Petition. A person seeking authority to use an established drainage system 3.26as an outlet must petition the drainage authority. When the petition is filed, the drainage 3.27authority in consultation with the auditor shall set a time and location for a hearing on the 3.28petition and shall give notice by mail and notice by publication of the hearing. The auditor 3.29must be paid a fee of $5 plus 30 cents for each notice mailed in excess of ten new text begin the actual new text end 3.30 new text begin costs for the hearing notices by the petitioner new text end . 3.31    Sec. 5. Minnesota Statutes 2008, section 103E.505, subdivision 3, is amended to read: 3.32    Subd. 3. Notice of contract awarding. The auditor of an affected county shall give 3.33notice of the awarding of the contract by publication in a newspaper in the county. The 3.34notice must state the time and location for awarding the contract. For a joint county 4.1drainage project the auditors shall award the contract at the office of the auditor where 4.2the proceedings are pending. If the estimated cost of construction is more than $3,000 new text begin new text end 4.3 new text begin $25,000 new text end , the auditor must also place a notice in a drainage construction trade newspaper. 4.4The trade newspaper notice must state: 4.5(1) the time and location for awarding the contract; 4.6(2) the approximate amount of work and its estimated cost; 4.7(3) that bids may be for the work as one job, or in sections, or separately, for bridges, 4.8ditches and open work, tile, or tile construction work, if required or advisable; 4.9(4) that each bid must be accompanied by a certified check or a bond furnished by an 4.10approved surety corporation payable to the auditors of affected counties for ten percent of 4.11the bid, as security that the bidder will enter into a contract and give a bond as required 4.12by section 103E.501; and 4.13(5) that the drainage authority reserves the right to reject any and all bids. 4.14    Sec. 6. Minnesota Statutes 2008, section 103E.611, subdivision 1, is amended to read: 4.15    Subdivision 1. Payment of drainage lien principal. (a) Drainage liens against 4.16property benefited under this chapter are payable to the treasurer of the county in 20 or 4.17less equal annual installments. The first installment of the principal is due on or before 4.18November 1 after the drainage lien statement is recorded, and each subsequent installment 4.19is due on or before November 1 of each year afterwards until the principal is paid. 4.20(b) The drainage authority may, by order, direct the drainage lien to be paid by 1/15 of 4.21the principal on or before five years from November 1 after the lien statement is recorded, 4.22and 1/15 on or before November 1 of each year afterwards until the principal is paid. 4.23(c) The drainage authority may order that the drainage lien must be paid by one or 4.24two installments, notwithstanding paragraphs (a) and (b), if the principal amount of a lien 4.25against a lot or tract of property or against a county or municipality is less than $50 new text begin $500 new text end . 4.26    Sec. 7. Minnesota Statutes 2008, section 103E.735, subdivision 1, is amended to read: 4.27    Subdivision 1. Authority and limits of fund. To create a repair fund for a 4.28drainage system to be used only for repairs, the drainage authority may apportion and 4.29assess an amount against all property and entities assessed for benefits in proceedings 4.30for establishment of the drainage system, including property not originally assessed 4.31and subsequently found to be benefited according to law. The fund may not exceed 20 4.32percent of the assessed benefits of the drainage system or $40,000 new text begin $100,000 new text end , whichever is 4.33greater. If the account in a fund for a drainage system exceeds the larger of 20 percent 4.34of the assessed benefits of the drainage system or $40,000 new text begin $100,000 new text end , assessments for 5.1the fund may not be made until the account is less than the larger of 20 percent of the 5.2assessed benefits or $40,000 new text begin $100,000 new text end . Assessments must be made pro rata according to 5.3the determined benefits. Assessments may be made payable, by order, in equal annual 5.4installments. The auditor shall file a tabular statement as provided in section 103E.731, 5.5subdivision 4 , with the county recorder. Assessments must be collected as provided in 5.6section 103E.731. 5.7    Sec. 8. Minnesota Statutes 2008, section 103E.805, is amended to read: 5.8103E.805 REMOVAL OF PROPERTY FROM AND PARTIAL 5.9ABANDONMENT OF A DRAINAGE SYSTEM. 5.10    Subdivision 1. Petition. After the construction of a drainage system, the new text begin an new text end owner 5.11of benefited property may petition the drainage authority to remove property from the 5.12drainage system or abandon any part of the drainage system that is not of public benefit 5.13and utility and does not serve a substantial useful purpose to property remaining in the 5.14system if: 5.15(1) waters are diverted from property assessed for benefits so that the drainage from 5.16the property does not use or affect the drainage system; or 5.17(2) a dam authorized by law is constructed in the drainage system so that the 5.18property above the dam cannot use or receive benefits from the drainage system. 5.19    Subd. 2. Filing. If the drainage system is under the jurisdiction of a new text begin county new text end drainage 5.20authority, the petition must be filed with the auditor new text begin of the county new text end . new text begin If the drainage system new text end 5.21 new text begin is under the jurisdiction of a joint county drainage authority, the petition must be filed with new text end 5.22 new text begin the county having the largest area of property in the drainage system, where the primary new text end 5.23 new text begin drainage system records are kept. new text end If the system is under the jurisdiction of a watershed 5.24district, the petition must be filed with the secretary of the district. 5.25    Subd. 3. Hearing. (a) When the petition is filed, the drainage authority in 5.26consultation with the auditor or the secretary shall set a time and location for a hearing 5.27on the partial abandonment petition and shall give notice by publication of the hearing 5.28to all persons interested in the drainage system new text begin by mail to the owners of all property new text end 5.29 new text begin benefited by the drainage system, and either in a newspaper of general circulation within new text end 5.30 new text begin the affected drainage area or by publication on a Web site of the drainage authority new text end . 5.31(b) At the hearing, the drainage authority shall make findings and shall direct, by 5.32order, that the petitioners' property be removed from the drainage system if the drainage 5.33authority determines: 6.1(1) that the waters from the petitioners' property have been diverted from the 6.2drainage system, or that a dam has been lawfully constructed and the property cannot 6.3 new text begin significantly or regularly new text end use the drainage system; 6.4(2) that the property is not benefited by the drainage system and does not use or 6.5affect the drainage system; and 6.6(3) that removing the property from the drainage system will not prejudice the 6.7property owners and property remaining in the system. 6.8(c) The drainage authority shall make findings and direct, by order, that part of 6.9the drainage system be abandoned if the drainage authority determines that part of the 6.10drainage system does not serve a substantial useful purpose to any property remaining in 6.11the system and is not of a substantial public benefit and utility. 6.12    Subd. 4. Effect of removing property from drainage system. The property that 6.13has been removed from the drainage system is not affected by the drainage system at any 6.14later proceeding for the repair or improvement of the drainage system and a drainage lien 6.15or assessment for repairs or improvements may not be made against the property that has 6.16been removed on or after the date of the order. 6.17    Subd. 5. Liens and assessments on property removed or abandoned new text begin from a new text end 6.18 new text begin drainage system new text end . An order under this section does not release the property from a 6.19drainage lien filed on account of the drainage system before the date of the order. An 6.20order under this section does not release the property from any assessment or a drainage 6.21lien filed on or after the date of the order for costs incurred on account of the drainage 6.22system before the date of the order. 6.23    Sec. 9. new text begin [103E.806] PARTIAL ABANDONMENT OF A DRAINAGE SYSTEM. new text end 6.24     new text begin Subdivision 1. new text end new text begin Petition. new text end new text begin After construction of a drainage system, an owner of new text end 6.25 new text begin benefited property may petition the drainage authority to abandon any part of the drainage new text end 6.26 new text begin system that is not of public benefit and utility and does not serve a substantial useful new text end 6.27 new text begin purpose to property remaining in the system. new text end 6.28     new text begin Subd. 2. new text end new text begin Filing. new text end new text begin If the drainage system is under the jurisdiction of a county drainage new text end 6.29 new text begin authority, the petition must be filed with the auditor of the county. If the drainage system new text end 6.30 new text begin is under the jurisdiction of a joint county drainage authority, the petition must be filed with new text end 6.31 new text begin the county having the largest area of property in the drainage system, where the primary new text end 6.32 new text begin drainage system records are kept. If the system is under the jurisdiction of a watershed new text end 6.33 new text begin district, the petition must be filed with the secretary of the district. new text end 6.34     new text begin Subd. 3. new text end new text begin Hearing. new text end new text begin (a) When the petition is filed, the drainage authority, in new text end 6.35 new text begin consultation with the auditor or the secretary, shall set a time and location for a hearing new text end 7.1 new text begin on the petition and shall give notice of the hearing by mail to the owners of all property new text end 7.2 new text begin benefited by the drainage system, and either in a newspaper of general circulation within new text end 7.3 new text begin the affected drainage area or by publication on a Web site of the drainage authority. new text end 7.4 new text begin (b) At the hearing, the drainage authority shall make findings and direct, by order, new text end 7.5 new text begin that part of the drainage system be abandoned, if the drainage authority determines that new text end 7.6 new text begin part of the drainage system does not serve a substantial useful purpose as part of the new text end 7.7 new text begin drainage system to any property remaining in the system and is not of a substantial public new text end 7.8 new text begin benefit and utility. new text end 7.9     new text begin Subd. 4. new text end new text begin Effect of partial abandonment. new text end new text begin After partial abandonment of a drainage new text end 7.10 new text begin system, a repair petition may not be accepted for the abandoned part of the drainage system new text end 7.11 new text begin and the responsibility of the drainage authority for that part of the drainage system ends. new text end 7.12     new text begin Subd. 5. new text end new text begin Liens and assessments on property involved in partial abandonment. new text end 7.13 new text begin An order under this section does not release the property from a drainage lien filed on new text end 7.14 new text begin account of the drainage system before the date of the order. An order under this section new text end 7.15 new text begin does not release the property from any assessment or a drainage lien filed on or after the new text end 7.16 new text begin date of the order for costs incurred on account of the drainage system before the date of new text end 7.17 new text begin the order. new text end