1.1A bill for an act1.2relating 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    Subd. 13.Drainage stakeholder coordination.The Board of Water and Soil 1.11Resources shall work with drainage stakeholders to foster mutual understanding 1.12and provide recommendations for drainage system management and related water 1.13management, including recommendations for updating the drainage law in chapter 103E 1.14and other related provisions. The board may convene informal working groups or work 1.15teams to develop information, education, and recommendations.1.16    Sec. 2. Minnesota Statutes 2008, section 103E.065, is amended to read:1.17103E.065 DRAINAGE INSPECTORS.1.18In counties where constructedor watershed districts having drainage systems have 1.19an aggregate cost of more than $50,000 constructed in accordance with this chapter, the 1.20boarddrainage authority 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 drainage authority. The board drainage authority1.23shall specify the appointment period and compensation.2.1    Sec. 3. Minnesota Statutes 2008, section 103E.227, is amended to read:2.2103E.227 IMPOUNDING, REROUTING, 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, reroute, or divert drainage system 2.9waters for beneficial use. The petition must be directed to the drainage authority where 2.10the drainage system is located.2.11(b) If the drainage system is under the jurisdiction of a county drainage authority, the 2.12petition must be filed with the auditor of the county. If the drainage system is under the 2.13jurisdiction of a joint county drainage authority, the petition must be filed with the county 2.14having the largest area of property in the drainage system, where the primary drainage 2.15system records are kept. If the system is under the jurisdiction of a watershed district, 2.16the petition must be filed with the secretary of the district.2.17(b)(c) The petition must contain the location of the installation, concept plans, and 2.18specifications for the proposed structure project,  and a map ofthat identifies the areas 2.19likely to be affected by the impoundment or diversion project.2.20(c)(d) The petitionerpetition shall agree to be responsible for the cost of installation 2.21and construction of the structure identify the sources of funds to be used to secure the 2.22necessary land rights and to construct the project and the amount and rationale for any 2.23drainage system funds requested.2.24(d)(e) The petitionpetitioner or drainage authority must also be accompanied by2.25acquire 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, a soil and water conservation district, a watershed district, or a municipality.2.32    Subd. 3. Procedure to establish project. (a) After receiving the petition,and 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 fromat the hearing it appears from the engineer's report and other evidence 3.2presented that the installationproject will be of a public or private benefit and that it 3.3will not impair the utility of the ditchdrainage system or deprive affected land owners 3.4of its benefit, the drainage authority shall make an order modifying the drainage system, 3.5to include the amount, if any, of drainage system funds approved for the project at the 3.6discretion of the drainage authority,  and issue a permitan order authorizing its installation3.7the project.3.8    Subd. 4. Permits and flowage easements required. Before installing or 3.9constructing an impoundment or diversion the project, the petitioner or drainage authority 3.10shall obtain all required permits and all necessary rights-of-way and flowage easements 3.11from owners of land to be affected by it.3.12    Subd. 5. Assessment ofConstruction, operation, maintenance, and repair 3.13costs responsibilities. The order of the drainage authority modifying the drainage 3.14system must provide that construction and lateridentify the parties responsible for 3.15construction, operation, and 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 the amount, if any, of drainage 3.18system funds for the project. If the part of the drainage system located within the project 3.19boundaries is in need of repairs, the petitioner's engineer shall estimate the cost at the time 3.20of petition of these separable repairs. The drainage authority shall consider the separable 3.21repair costs that will be avoided as a result of the petitioned project, as well as any other 3.22benefits of the project to the drainage system, when determining whether or how much to 3.23contribute to the petitioned project.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 the actual 3.30costs for the hearing notices by the petitioner.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 $3,0004.3$25,000, 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 $500.4.26    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 $100,000, 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 $100,000, 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 $100,000. 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 an 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; or5.17(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 county drainage 5.20authority, the petition must be filed with the auditor of the county. If the drainage system 5.21is under the jurisdiction of a joint county drainage authority, the petition must be filed with 5.22the county having the largest area of property in the drainage system, where the primary 5.23drainage system records are kept. 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 by mail to the owners of all property 5.29benefited by the drainage system, and either in a newspaper of general circulation within 5.30the affected drainage area or by publication on a Web site of the drainage authority.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 6.3significantly or regularly 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; and6.6(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 from a 6.18drainage system. 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. [103E.806] PARTIAL ABANDONMENT OF A DRAINAGE SYSTEM.6.24    Subdivision 1.Petition.After construction of a drainage system, an owner of 6.25benefited property may petition the drainage authority to abandon any part of the drainage 6.26system that is not of public benefit and utility and does not serve a substantial useful 6.27purpose to property remaining in the system.6.28    Subd. 2.Filing.If the drainage system is under the jurisdiction of a county drainage 6.29authority, the petition must be filed with the auditor of the county. If the drainage system 6.30is under the jurisdiction of a joint county drainage authority, the petition must be filed with 6.31the county having the largest area of property in the drainage system, where the primary 6.32drainage system records are kept. If the system is under the jurisdiction of a watershed 6.33district, the petition must be filed with the secretary of the district.6.34    Subd. 3.Hearing.(a) When the petition is filed, the drainage authority, in 6.35consultation with the auditor or the secretary, shall set a time and location for a hearing 7.1on the petition and shall give notice of the hearing by mail to the owners of all property 7.2benefited by the drainage system, and either in a newspaper of general circulation within 7.3the affected drainage area or by publication on a Web site of the drainage authority.7.4(b) At the hearing, the drainage authority shall make findings and direct, by order, 7.5that part of the drainage system be abandoned, if the drainage authority determines that 7.6part of the drainage system does not serve a substantial useful purpose as part of the 7.7drainage system to any property remaining in the system and is not of a substantial public 7.8benefit and utility.7.9    Subd. 4.Effect of partial abandonment.After partial abandonment of a drainage 7.10system, a repair petition may not be accepted for the abandoned part of the drainage system 7.11and the responsibility of the drainage authority for that part of the drainage system ends.7.12    Subd. 5.Liens and assessments on property involved in partial abandonment.7.13An order under this section does not release the property from a drainage lien filed on 7.14account of the drainage system before the date of the order. An order under this section 7.15does not release the property from any assessment or a drainage lien filed on or after the 7.16date of the order for costs incurred on account of the drainage system before the date of 7.17the order.