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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1985 

                         CHAPTER 172-S.F.No. 45 
           An act relating to drainage; recodifying the drainage 
          law; amending Minnesota Statutes 1984, sections 
          40.072, subdivisions 3, 4, 5, 6, and 9; 40.073; 88.43, 
          subdivision 2; 97.484; 97.50, subdivision 1; 105.42, 
          subdivision 1; 105.471; 105.74; 105.81; 111.09, 
          subdivision 2; 111.11; 111.13; 111.30; 111.31; 111.36; 
          111.78; 112.431, subdivision 2; 112.48, subdivision 1; 
          112.50; 112.501, subdivision 1; 112.541; 112.59; 
          112.60, subdivisions 1, 2, and 3; 112.64, subdivisions 
          2 and 3; 112.65, subdivision 1; 161.28, subdivision 1; 
          163.17; 357.021, subdivision 2; 375.471; 471.345, 
          subdivision 3; 473.877, subdivision 1; and 473.878, 
          subdivision 4; proposing coding for new law as 
          Minnesota Statutes, chapter 106A; repealing Minnesota 
          Statutes 1984, chapter 106 and section 109.38.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                DRAINAGE 
    Section 1.  [106A.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  
    Subd. 2.  [AFFECTED.] "Affected" means benefited or damaged 
by a drainage system. 
    Subd. 3.  [AUDITOR.] "Auditor" means the auditor of the 
county where the petition for a drainage system was properly 
filed. 
    Subd. 4.  [BOARD.] "Board" means the board of commissioners 
of the county where the drainage system is located. 
    Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources. 
    Subd. 6.  [DIRECTOR.] "Director" means the director of the 
division of waters in the department of natural resources. 
    Subd. 7.  [DISMISSAL OF PROCEEDINGS.] "Dismissal of 
proceedings" means that the petition and proceedings related to 
the petition are dismissed.  
    Subd. 8.  [DITCH.] "Ditch" means an open channel to conduct 
the flow of water. 
    Subd. 9.  [DRAINAGE AUTHORITY.] "Drainage authority" means 
the board or joint county drainage authority having jurisdiction 
over a drainage system. 
    Subd. 10.  [DRAINAGE LIEN.] "Drainage lien" means a 
recorded lien against property for drainage proceedings and 
construction costs and interest on the lien as provided under 
this chapter.  
    Subd. 11.  [DRAINAGE SYSTEM.] "Drainage system" means a 
ditch and tile system to drain property, including laterals, 
improvements, and improvements of outlets, that is proposed to, 
established by, or constructed by a drainage authority. 
"Drainage system" includes the improvement of a natural waterway 
used in the construction of a drainage system, and any part of a 
flood control plan proposed by the United States or its agencies 
in the drainage system. 
    Subd. 12.  [ENGINEER.] "Engineer" means the county highway 
engineer of a county where affected property is located or a 
professional engineer registered under state law. 
    Subd. 13.  [ESTABLISHED.] "Established" means the drainage 
authority has made the final order to construct the drainage 
system. 
    Subd. 14.  [LATERAL.] "Lateral" means any drainage 
construction by branch or extension, or a system of branches and 
extensions, that connects property with an established drainage 
system. 
    Subd. 15.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city or a town having urban powers under 
section 368.01, subdivision 1 or 1a. 
    Subd. 16.  [NOTICE BY MAIL.] "Notice by mail" means a 
notice mailed and addressed to each person entitled to receive 
the notice, if the address is known to the auditor or can be 
determined by the county treasurer of the county where the 
affected property is located.  
    Subd. 17.  [PERSON.] "Person" means an individual, firm, 
partnership, association, or private corporation.  
    Subd. 18.  [POLITICAL SUBDIVISIONS.] "Political 
subdivisions" means statutory and home rule charter cities, 
counties, towns, school districts, and other political 
subdivisions.  
    Subd. 19.  [PROCEEDING.] "Proceeding" means a procedure 
under this chapter for or related to drainage that begins with 
filing a petition and ends by dismissal or establishment of a 
drainage system. 
    Subd. 20.  [PROPERTY.] "Property" means real property. 
    Subd. 21.  [PUBLICATION.] "Publication" means a notice 
published at least once a week for three successive weeks in a 
legal newspaper in general circulation in each county affected 
by the notice.  
    Subd. 22.  [PUBLIC HEALTH.] "Public health" includes an act 
or thing that tends to improve the general sanitary condition of 
the community by drainage, relieving low wetland or stagnant and 
unhealthful conditions, or preventing the overflow of any 
property that produces or tends to produce unhealthful 
conditions.  
    Subd. 23.  [PUBLIC WATERS.] "Public waters" has the meaning 
given in section 105.37, subdivision 14.  
    Subd. 24.  [PUBLIC WELFARE OR PUBLIC BENEFIT.] "Public 
welfare" or "public benefit" includes an act or thing that tends 
to improve or benefit the general public, either as a whole or 
as to any particular community or part, including works 
contemplated by this chapter, that drain or protect roads from 
overflow, protect property from overflow, or reclaim and render 
property suitable for cultivation that is normally wet and 
needing drainage or subject to overflow.  
    Subd. 25.  [RESIDENT OWNER.] "Resident owner" means an 
owner of property or buyer under a contract for deed who resides 
in the state.  
    Subd. 26.  [ROAD.] "Road" means any road used by the public 
for transportation purposes.  

                      GENERAL DRAINAGE PROVISIONS 
    Sec. 2.  [106A.011] [DRAINAGE AUTHORITY POWERS.] 
    Subdivision 1.  [GENERALLY.] The drainage authority may 
make orders to: 
    (1) construct and maintain drainage systems; 
    (2) deepen, widen, straighten, or change the channel or bed 
of a natural waterway that is part of the drainage system or is 
located at the outlet of a drainage system; 
    (3) extend a drainage system into or through a municipality 
for a suitable outlet; and 
    (4) construct necessary dikes, dams, and control structures 
and power appliances, pumps, and pumping machinery as provided 
by law. 
    Subd. 2.  [DRAINAGE OF WATERBASINS AND WATERCOURSES.] A 
drainage authority may not drain a water body or begin work or 
activity regulated by section 105.42 in a watercourse until the 
commissioner determines that the water body or watercourse is 
not public waters.  If a water body or watercourse is determined 
to be public waters, the drainage proceedings are subject to 
section 105.391, subdivision 3, relating to replacing public 
waters and the water bank program. 
    Subd. 3.  [PERMISSION OF COMMISSIONER FOR WORK IN PUBLIC 
WATERS; APPLICATION.] (a) The drainage authority must receive 
permission from the commissioner to:  
     (1) remove, construct, or alter a dam affecting public 
waters;  
    (2) establish, raise, or lower the level of public waters; 
or 
    (3) drain any portion of a public water.  
    (b) The petitioners for a proposed drainage system or the 
drainage authority may apply to the commissioner for permission 
to do work in public waters or for the determination of public 
waters status of a water body or watercourse. 
    Subd. 4.  [FLOOD CONTROL.] The drainage authority may 
construct necessary dams, structures, and improvements and 
maintain them to impound and release flood water to prevent 
damage.  The dams, structures, and improvements may be 
constructed with or without a drainage system.  For a water body 
or watercourse that is not public waters the drainage authority 
may: 
    (1) lower, or establish the height of water in the water 
body or watercourse to control flood waters; 
    (2) build structures and improvements to maintain a water 
body or watercourse for flood control or other public purposes; 
and 
    (3) construct dikes or dams in a water body to maintain 
water at the height designated by the drainage authority and to 
drain part of the water body.  
    Sec. 3.  [106A.015] [CONSIDERATIONS BEFORE DRAINAGE WORK IS 
DONE.] 
    Subdivision 1.  [ENVIRONMENTAL AND LAND USE CRITERIA.] 
Before establishing a drainage system the drainage authority 
must consider: 
    (1) private and public benefits and costs of the proposed 
drainage system; 
    (2) the present and anticipated agricultural land acreage 
availability and use in the drainage system; 
     (3) the present and anticipated land use within the 
drainage system; 
    (4) flooding characteristics of property in the drainage 
system;  
    (5) the waters to be drained and alternative measures to 
conserve, allocate, and develop the waters; 
    (6) the effect on water quality of constructing the 
proposed drainage system; 
    (7) fish and wildlife resources affected by the proposed 
drainage system; 
    (8) shallow groundwater availability, distribution, and use 
in the drainage system; and 
    (9) the overall environmental impact of all the above 
criteria.  
    Subd. 2.  [DETERMINING PUBLIC UTILITY, BENEFIT, OR 
WELFARE.] In any proceeding to establish a drainage system, or 
in the construction of or other work affecting a public drainage 
system under any law, the drainage authority or other authority 
having jurisdiction of the proceeding must give proper 
consideration to conservation of soil, water, forests, wild 
animals, and related natural resources, and to other public 
interests affected, together with other material matters as 
provided by law in determining whether the project will be of 
public utility, benefit, or welfare.  
    Sec. 4.  [106A.021] [DITCHES MUST BE PLANTED WITH PERMANENT 
GRASS.] 
    Subdivision 1.  [SPOIL BANKS MUST BE SPREAD AND GRASS 
PLANTED.] In any proceeding to establish, construct, improve, or 
do any work affecting a public drainage system under any law 
that appoints viewers to assess benefits and damages, the 
authority having jurisdiction of the proceeding shall order 
spoil banks to be spread consistent with the plan and function 
of the drainage system.  The authority shall order that 
permanent grass, other than a noxious weed, be planted on the 
banks and on a strip 16-1/2 feet in width or to the crown of the 
leveled spoil bank, whichever is the greater, on each side of 
the top edge of the channel of the ditch.  The acreage and 
additional property required for the planting must be acquired 
by the authority having jurisdiction.  
    Subd. 2.  [RESEEDING AND HARVESTING GRASS.] The authority 
having jurisdiction over the repair and maintenance of the 
drainage system shall supervise all necessary reseeding.  The 
permanent grass must be maintained in the same manner as other 
drainage system repairs.  Harvest of the grass from the grass 
strip in a manner not harmful to the grass or the drainage 
system is the privilege of the fee owner or assigns.  The county 
drainage inspector shall establish regulations for the fee owner 
and assigns to harvest the grass.  
    Subd. 3.  [AGRICULTURAL PRACTICES PROHIBITED.] Agricultural 
practices, other than those required for the maintenance of a 
permanent growth of grass, are not permitted on any portion of 
the property acquired for planting.  
    Sec. 5.  [106A.025] [PROCEDURE FOR DRAINAGE PROJECT THAT 
AFFECTS STATE LAND OR WATER AREA USED FOR CONSERVATION.] 
    Subdivision 1.  [AREAS SUBJECT TO THIS SECTION.] If a land 
or water area owned by the state and held or used to protect or 
propagate wild animals, provide hunting or fishing for the 
public, or for any other purpose relating to the conservation, 
development, or use of soil, water, forests, wild animals, or 
related natural resources will be affected by any public project 
or proceeding for drainage under any law, all procedures 
relating to the project or proceeding are subject to this 
section, if applicable. 
    Subd. 2.  [CONDITIONS TO TAKE OR DAMAGE STATE LAND AND 
WATER AREAS.] (a) Any part of the state land or water area may 
be taken or damaged for a public project after payment of just 
compensation as provided by law and under the provisions of this 
subdivision. 
    (b) The authority having jurisdiction of the drainage 
project or proceeding shall first find and determine that there 
is public necessity for the taking or damage that is greater 
than the public interest in the purposes for which the affected 
land and water areas are held or used by the state. 
    (c) In determining the compensation to be paid for the 
taking or damage, the authority must give proper consideration 
to the value of the land and water area for the purposes it is 
held or used by the state and other material elements of value. 
    (d) Public waters may not be taken, damaged, or impaired 
except as otherwise expressly authorized by law, and a provision 
of any other law for the protection or conservation of public 
waters may not be abridged or superseded by this subdivision. 
    Subd. 3.  [CONSIDERATIONS IN DETERMINING BENEFITS.] In 
determining benefits to the state land or water area in any 
proceeding to levy assessments or offset benefits against 
damages, proper consideration must be given to the value of the 
area for the purpose it is held or used by the state, with other 
material elements of value. 
    Subd. 4.  [AMOUNTS PAID TO STATE.] Any amounts paid to the 
state for taking or damaging the state land or water area in a 
proceeding must be credited to the proper account for 
acquisition, development, or maintenance of the areas, and the 
amount is appropriated to the commissioner for those purposes to 
remain available until expended. 
    Subd. 5.  [MONEY TO PAY ASSESSMENTS.] Assessments for 
benefits made against the state land or water area in a 
proceeding must be paid out of money appropriated and available 
to pay assessments as provided by law. 
    Sec. 6.  [106A.031] [CONNECTION WITH DRAINS IN ADJOINING 
STATES.] 
    Subdivision 1.  [PROCEDURE.] If it is necessary to 
construct a drainage system at or near the boundary between this 
state and another state or country and the work cannot be done 
in a proper manner without extending the drainage system into 
the adjoining state or country, the drainage authority may join 
with the board or tribunal of the adjoining state or country 
having jurisdiction to plan and construct public drainage 
systems.  The drainage authority in this state may enter into 
contracts or arrangements with the board or tribunal of the 
adjoining state or country to construct the drainage system.  
The proceeding and construction related to property in this 
state and, as applicable, the drainage authority in relation to 
the joint drainage work, are governed by this chapter.  
    Subd. 2.  [PAYMENT OF COSTS.] The adjoining county or 
district in another state or country must pay its proper share 
of the necessary costs of the construction of any drainage work 
including damages.  If the benefits to property in the adjoining 
state or country are not sufficient to pay all the costs of 
construction of the drainage system in that state or country, 
including damages, the drainage authority may authorize or 
direct the affected counties to contribute sufficient funds to 
complete the construction of the drainage system in the 
adjoining state or country, if the construction will be of 
sufficient benefit to the affected property in this state to 
warrant the contribution. 
    Sec. 7.  [106A.035] [DEFECTIVE NOTICE.] 
    If notice is required under this chapter and proper notice 
has been given to some parties but the notice is defective or 
not given to other parties, the drainage authority has 
jurisdiction of all parties that received proper notice.  The 
proceedings may be continued by order of the drainage authority 
for the time necessary to publish, post, or mail a new notice. 
The new notice needs only be given to those not properly 
notified by the first notice.  
    Sec. 8.  [106A.041] [PERSONAL SERVICE IN LIEU OF OTHER 
METHODS OF NOTICE.] 
    If notice is to be given under this chapter, personal 
service at least ten days before the date of hearing may be 
given in lieu of the manner provided.  The notice must be served 
in the manner provided for the service of summons in a civil 
action in district court.  
    Sec. 9.  [106A.045] [FAILURE OF DRAINAGE AUTHORITY TO 
ATTEND HEARINGS.] 
    If an order has been made and notice for a hearing given 
under this chapter, and the drainage authority does not appear 
at the time and place specified for any reason, the auditor 
shall continue the hearing to a date set by the auditor.  The 
auditor shall notify the drainage authority of the continuance 
and the date of hearing.  The jurisdiction is continued until 
the date set by the auditor. 
    Sec. 10.  [106A.051] [DEFECTIVE PROCEEDINGS.] 
    (a) A party may not take advantage of an error in a 
drainage proceeding or an informality, error, or defect 
appearing in the record of the proceeding or construction, 
unless the party complaining is directly affected.  The 
modification of the benefits or damages to any property, or the 
enjoining of collection of any assessment, does not affect any 
other property or the collection of any assessment on other 
property. 
    (b) If a drainage system has been established and a 
contract awarded in good faith, without collusion, and at a 
reasonable price:  
    (1) a defect or lack of notice in awarding, making, or 
executing the contract does not affect the enforcement of an 
assessment; and 
    (2) if the contract is performed in good faith in whole or 
in part, a defect does not invalidate the contract.  
    Sec. 11.  [106A.055] [REIMBURSEMENT OF COST OF FORMER 
SURVEYS WHEN USED LATER.] 
    If after a proceeding has begun a survey has been made and 
a proceeding to establish a drainage system has been dismissed 
or the drainage system has not been established, and all or a 
part of the former survey is used by the engineer for a drainage 
proceeding in the same area, the amount saved in the subsequent 
proceedings must be paid to the proper parties according to this 
section.  If the parties who paid the expense of the former 
survey make a petition, the drainage authority shall:  
    (1) determine the amount of benefit that was derived by the 
subsequent proceedings from the former survey; 
    (2) order the amount of the benefit to be paid to the 
proper parties; and 
    (3) charge the amount paid as a cost of the subsequent 
drainage proceeding.  
    Sec. 12.  [106A.061] [RIGHT OF ENTRY.] 
    In proceedings under this chapter, the engineer, the 
engineer's assistants, the viewers, and the viewers' assistants 
may enter any property to make a survey, locate a drain, examine 
the property, or estimate the benefits and damages.  
    Sec. 13.  [106A.065] [DRAINAGE INSPECTORS.] 
    In counties where constructed drainage systems have an 
aggregate cost of more than $50,000, the board shall appoint a 
competent person as county drainage inspector.  The inspector 
may be the county highway engineer.  The inspector shall examine 
the drainage systems designated by the board.  The board shall 
specify the appointment period and compensation. 
    Sec. 14.  [106A.071] [COUNTY ATTORNEY.] 
    The county attorney shall represent the county in all 
drainage proceedings and related matters without special 
compensation.  A county attorney, the county attorney's 
assistant, or any attorney associated with the county attorney 
in business, may not otherwise appear in any drainage proceeding 
for any interested person.  
    Sec. 15.  [106A.075] [OBSTRUCTION OF DRAINAGE SYSTEM.] 
    Subdivision 1.  [NOTIFICATION TO RESPONSIBLE PARTY.] If the 
board determines that a drainage system has been obstructed, 
including by the installation of bridges or culverts of 
insufficient hydraulic capacity, the board shall notify the 
person or public authority responsible for the obstruction as 
soon as possible and direct the responsible party to remove the 
obstruction or show the board why the obstruction should not be 
removed.  The board must set a time and location in the notice 
for the responsible person to appear before the board.  
    Subd. 2.  [OBSTRUCTION ON PRIVATE PROPERTY.] If the 
obstruction is on private property, the owner is responsible for 
the obstruction unless the owner proves otherwise.  The owner 
must be notified by certified mail at least ten days before the 
hearing. 
    Subd. 3.  [OBSTRUCTION HEARING.] The board shall hear all 
interested parties and if the board determines that the drainage 
system has been obstructed by a person or public authority, the 
board shall order the obstruction removed by the responsible 
party within a reasonable time set in the order.  If the 
obstruction is not removed by the prescribed time, the board 
shall have the obstruction removed and the auditor shall make a 
statement of the removal cost.  The statement must be filed in 
the county recorder's office as a lien on the property where the 
obstruction is located or against the responsible party.  The 
lien must be enforced and collected as liens for drainage 
repairs under this chapter, except that a lien may not be filed 
against private property if the board determines that the owner 
of the property is not responsible for the obstruction.  The 
lien may be enforced against the responsible party by civil 
action.  
    Sec. 16.  [106A.081] [CRIMES RELATED TO DRAINAGE SYSTEMS; 
PENALTIES.] 
    Subdivision 1.  [UNAUTHORIZED DRAIN OUTLETTING INTO 
DRAINAGE SYSTEM.] A person may not cause or construct a drain 
that outlets into a lawfully constructed drainage system except 
as provided in this chapter.  
    Subd. 2.  [OBSTRUCTION OR DAMAGE OF A DRAINAGE SYSTEM.] A 
person may not wilfully obstruct or damage a drainage system.  
    Subd. 3.  [ALTERING ENGINEER'S MARKING OR STAKES.] A person 
may not wilfully change the location or alter markings of stakes 
set by the engineer in a drainage system.  
    Subd. 4.  [PENALTY.] Violation of this section is a 
misdemeanor. 
    Sec. 17.  [106A.085] [ENFORCEMENT.] 
    Subdivision 1.  [WARRANTS AND ARRESTS.] The commissioner, 
director of the fish and game division, game refuge patrolmen, 
and conservation officers may execute and serve warrants, and 
arrest persons detected in actual violation of sections 1 to 92 
as provided in section 97.50, subdivision 1. 
    Subd. 2.  [PROSECUTION.] The county attorney shall 
prosecute all criminal actions arising under this chapter.  
    Sec. 18.  [106A.091] [APPEALS.] 
    Subdivision 1.  [GROUNDS FOR APPEAL.] A party may appeal to 
the district court from a recorded order of a drainage authority 
made in a drainage proceeding that determines: 
    (1) the amount of benefits; 
    (2) the amount of damages; 
    (3) fees or expenses allowed; or 
    (4) whether the environmental and land use requirements and 
criteria of section 3, subdivision 1, are met.  
    Subd. 2.  [PROCEDURE FOR APPEALS RELATED TO BENEFITS AND 
DAMAGES.] (a) A person who appeals the amount of benefits or 
damages may include benefits and damages affecting property not 
owned by the appellant.  Notice of the appeal must be served to 
the auditor and to the owner or occupant of property included in 
the appeal or to the attorney representing the property owner in 
the proceedings. 
    (b) The appellant must file a notice of appeal with the 
auditor within 30 days after the order to be appealed is filed.  
The notice must state the particular benefits or damages 
appealed and the basis for the appeal.  Within 30 days after the 
notice is filed, the auditor must file the original notice with 
the clerk of the district court. 
    Subd. 3.  [PROCEDURE FOR APPEAL RELATED TO ALLOWANCE OF 
FEES OR EXPENSES.] An appeal related to the allowance of fees or 
expenses may be to the district court of any county where the 
affected property is located.  The appeal must be made within 30 
days after the order allowing or disallowing the claim and is 
governed as applicable by the provisions of subdivision 4. 
    Subd. 4.  [APPEAL TRIAL.] (a) The issues in the appeal are 
entitled to a trial by a jury at the next term of the district 
court after the appeal is filed that is held within the county 
where the drainage proceeding was pending. 
    (b) If the appellant requests it, the trial must be held at 
the next term of the district court of the county where the 
affected property is located.  The clerk of the district court 
where the appeal is first filed shall make, certify, and file 
with the clerk of the district court of the county where the 
trial is transferred, a transcript of the papers and documents 
on file in the clerk's office in the proceedings related to the 
matters of the appeal.  After the final determination of the 
appeal, the clerk of the district court that tried the appeal 
shall certify and return the verdict to the district court of 
the county where the drainage proceedings were filed. 
    (c) The appeal shall take precedence over all other civil 
court matters.  If there is more than one appeal to be tried in 
one county, the court may, on its own motion or the motion of an 
interested party, consolidate two or more appeals and try them 
together, but the rights of the appellants must be determined 
separately.  If the appellant does not prevail, the cost of the 
trial must be paid by the appellant.  
    (d) The clerk of the district court where the appeal is 
filed shall file a certified copy of the final determination of 
the appeal with the auditor of the affected counties. 
    Subd. 5.  [EFFECT OF DETERMINATION.] For all appeals, the 
amount awarded by the jury as a determination of the issue 
appealed shall replace the amount that was appealed.  
    Sec. 19.  [106A.095] [APPEAL FROM ORDERS DISMISSING OR 
ESTABLISHING DRAINAGE SYSTEMS.] 
    Subdivision 1.  [NOTICE OF APPEAL.] A party may appeal an 
order made by the board that dismisses drainage proceedings or 
establishes or refuses to establish a drainage system to the 
district court of the county where the drainage proceedings are 
pending.  The appellant must serve notice of the appeal to the 
auditor within 30 days after the order is filed.  After notice 
of the appeal is served, the appeal may be brought to trial by 
the appellant or the drainage authority after notifying the 
other party at least ten days before the trial date. 
    Subd. 2.  [TRIAL.] The appeal must be tried by the court 
without a jury.  The court shall examine the entire drainage 
proceeding and related matters and receive evidence to determine 
whether the findings made by the board can be sustained.  At the 
trial the findings made by the board are prima facie evidence of 
the matters stated in the findings, and the board's order is 
prima facie reasonable.  If the court finds that the order 
appealed is lawful and reasonable, it shall be affirmed.  If the 
court finds that the order appealed is arbitrary, unlawful, or 
not supported by the evidence, it shall make an order, justified 
by the court record, to take the place of the appealed order, or 
remand the order to the board for further proceedings.  After 
the appeal has been determined by the court, the board shall 
proceed in conformity with the court order.  
    Subd. 3.  [DETERMINATION OF BENEFITS AND DAMAGES AFTER 
COURT ORDER.] If the order establishing a drainage system is 
appealed, the trial of appeals related to benefits or damages in 
the drainage proceeding must be stayed until the establishment 
appeal is determined.  If the order establishing the drainage 
system is affirmed, appeals related to benefits and damages must 
then be tried. 
    Subd. 4.  [PROCEDURE IF APPEAL ORDER ESTABLISHES DRAINAGE 
SYSTEM.] If an order refusing to establish a drainage system is 
appealed, and the court, by order, establishes the drainage 
system, the auditor shall give notice by publication of the 
filed order.  The notice is sufficient if it refers to the 
drainage system by number or other descriptive designation, 
states the meaning of the order, and states the date the court 
order was filed.  A person may appeal the establishment order to 
the district court as provided in this section.  
    Subd. 5.  [APPEAL OF APPELLATE ORDER.] A party aggrieved by 
a final order or judgment rendered on appeal to the district 
court may appeal as in other civil cases.  The appeal must be 
made and perfected within 30 days after the filing of the order 
or entry of judgment.  
    Sec. 20.  [106A.101] [DRAINAGE PROCEEDING AND CONSTRUCTION 
RECORDS.] 
    Subdivision 1.  [DOCUMENTS ARE PUBLIC RECORDS.] All maps, 
plats, charts, drawings, plans, specifications, and other 
documents that have been filed, received in evidence, or used in 
connection with a drainage proceeding or construction are 
subject to the provisions on public records in section 15.17.  
    Subd. 2.  [RECORD REQUIREMENTS.] All maps, plats, profiles, 
plans, and specifications prepared and used in relation to a 
proceeding must: 
    (1) be uniform; 
    (2) have each sheet bound and marked to identify the 
proceeding by the drainage system number; 
    (3) show the name of the person preparing the sheet; 
    (4) show the date the sheet was prepared; and 
    (5) conform to rules and standards prescribed by the 
director of the division of waters.  
    Subd. 3.  [INDEX OF PROCEEDINGS AND RECORDS.] The auditor 
shall keep all orders, exhibits, maps, charts, profiles, plats, 
plans, specifications, and records of the proceedings.  These 
records may not be removed except when the board makes a written 
order to remove them.  The auditor shall keep an accurate index 
of the proceedings and related documents in a bound book.  
    Subd. 4.  [ENGINEER'S DOCUMENTS.] All original plats, 
profiles, records, and field books made by the engineer during 
the proceedings or the construction of a drainage system are 
public records and the property of the drainage authority.  
These public records must be filed with the auditor under the 
direction of the drainage authority when construction is 
completed or when the engineer stops acting for the drainage 
system, whichever is earlier. 
    Subd. 5.  [FILING AND STORAGE FACILITIES.] County boards 
shall provide the auditor with necessary filing and storage 
facilities to protect the files and records of all proceedings. 
The county boards may provide for the copying and filing of the 
documents and records of proceedings by photographic devices as 
provided for public records under section 15.17.  In the event 
of loss of the originals, the photographic copies are originals 
after authentication by the auditor. 
    Subd. 6.  [RECORDS ARE PRIMA FACIE EVIDENCE.] The record of 
proceedings under this chapter and of orders made by the 
drainage authority or the district court in the proceedings, or 
a certified copy of a record or order, is prima facie evidence 
of the facts stated in the record or order and of the regularity 
of all proceedings prior to the making of the order.  

                PROCEDURE TO ESTABLISH DRAINAGE SYSTEMS 
    Sec. 21.  [106A.201] [NEW DRAINAGE SYSTEMS.] 
    Subdivision 1.  [PROCEDURE.] To establish a new drainage 
system under this chapter, the petitioners and drainage 
authority must proceed according to this section and the 
provisions applicable to establishment of drainage systems. 
    Subd. 2.  [FILING PETITION AND BOND.] A petition for a new 
drainage system and a bond must be filed with the auditor.  If a 
drainage system is within two or more counties, the petition 
must be filed with the auditor of the county with the greatest 
area of property that the proposed drainage system passes over.  
    Subd. 3.  [SIGNATURES ON PETITION.] The petition must be 
signed by a majority of the resident owners of the property that 
the proposed drainage system described in the petition passes 
over, or by the property owners of at least 60 percent of the 
area that the proposed drainage system passes over, excluding 
areas in and holders of easements for electric or telephone 
transmission and distribution lines.  The petition may be signed 
by the commissioner of transportation or by a political 
subdivision, when property affected by or assessed for the 
proposed drainage system is in their jurisdiction.  The 
signature of each entity counts as one signature on the petition.
    Subd. 4.  [PETITION REQUIREMENTS.] The petition must: 
    (1) describe the property where the proposed drainage 
system passes over; 
    (2) describe the starting point, the general course, and 
the terminus of the proposed drainage system; 
    (3) state why the proposed drainage system is necessary; 
    (4) state that the proposed drainage system will benefit 
and be useful to the public and will promote public health; and 
    (5) state that the petitioners will pay all costs of the 
proceedings, if the proceedings are dismissed or the contract 
for the construction of the proposed drainage system is not 
awarded. 
    Subd. 5.  [WITHDRAWAL OF A PETITIONER.] After a petition 
has been filed, a petitioner may not withdraw from the petition 
except with the written consent of all other petitioners on the 
filed petition.  
    Sec. 22.  [106A.205] [PETITIONERS' BOND.] 
    One or more petitioners must file a bond with the petition 
for at least $10,000 that is payable to the county where the 
petition is filed, or for a petition for a proposed joint county 
drainage system that is payable to all of the counties named in 
the petition.  The bond must have adequate surety and be 
approved by the auditor.  The bond must be conditioned to pay 
the costs incurred if the proceedings are dismissed or a 
contract is not awarded to construct the drainage system 
proposed in the petition.  
    Sec. 23.  [106A.211] [EXPENSES NOT TO EXCEED BOND.] 
    The costs incurred before the proposed drainage system is 
established may not exceed the amount of the petitioners' bond. 
A claim for expenses greater than the amount of the bond may not 
be paid unless an additional bond is filed.  If the drainage 
authority determines that the cost of the proceeding will be 
greater than the petitioners' bond before the proposed drainage 
system is established, the drainage authority must require an 
additional bond to cover all costs to be filed within a 
prescribed time.  The proceeding must be stopped until the 
additional bond prescribed by the drainage authority is filed. 
If the additional bond is not filed within the time prescribed, 
the proceeding may be dismissed.  
    Sec. 24.  [106A.215] [IMPROVEMENT OF DRAINAGE SYSTEM.] 
    Subdivision 1.  [PROCEDURE.] The procedure in this section 
must be used to improve an established and constructed drainage 
system. 
    Subd. 2.  [DEFINITION.] In this section "improvement" means 
the tiling, enlarging, extending, straightening, or deepening of 
an established and constructed drainage system including 
construction of ditches to reline or replace tile and 
construction of tile to replace a ditch.  
    Subd. 3.  [LIMIT OF EXTENSION.] An improvement may only 
extend a drainage system downstream to a more adequate outlet 
and the extension may not exceed one mile.  
    Subd. 4.  [PETITION.] (a) To start an improvement 
proceeding, a petition must be signed by: 
    (1) at least 26 percent of the resident owners of the 
property affected by the proposed improvement; 
    (2) at least 26 percent of the resident owners of property 
that the proposed improvement passes over; 
    (3) the owners of at least 26 percent of the property area 
affected by the proposed improvement; or 
    (4) the owners of at least 26 percent of the property area 
that the proposed improvement passes over. 
    (b) The petition must be filed with the auditor or, for a 
drainage system in more than one county, with the auditor of the 
county having the largest area of property the improvement is 
located on. 
    (c) The provisions of section 21, subdivision 3, regarding 
signatures of public officials apply to this subdivision. 
    (d) The petition must: 
    (1) designate the drainage system proposed to be improved 
by number or another description that identifies the drainage 
system; 
    (2) state that the drainage system has insufficient 
capacity or needs enlarging or extending to furnish sufficient 
capacity or a better outlet; 
    (3) describe the starting point, general course, and 
terminus of any extension; 
    (4) state that the proposed improvement will be of public 
utility and promote the public health; and 
    (5) contain an agreement by the petitioners that they will 
pay all costs and expenses that may be incurred if the 
improvement proceedings are dismissed. 
    Subd. 5.  [SUBSEQUENT PROCEEDINGS.] When a petition and the 
bond required by section 22 are filed, the auditor shall present 
the petition to the board at its next meeting or, for a joint 
county drainage system, to the joint county drainage authority 
within ten days after the petition is filed.  The drainage 
authority shall appoint an engineer to examine the drainage 
system and make an improvement report.  The improvement 
proceedings must proceed under this chapter as provided for the 
original proceedings for the establishment of a drainage 
system.  The benefits and damages determined must be as a result 
of the proposed improvement.  Assessments for the repair of the 
improvement must be based on the benefits determined for the 
improvement.  
    Subd. 6.  [PETITION FOR SEPARABLE PART OF THE DRAINAGE 
SYSTEM NEEDING REPAIR.] (a) If the existing drainage system 
needs repair and the petition for the improvement is for a 
separable part only of the existing drainage system, the 
engineer may include in the detailed survey report a statement 
showing the proportionate estimated cost of the proposed 
improvement required to repair the separable part of the 
existing system and the estimated proportionate cost of the 
added work required for the improvement.  The notice of hearing 
on the detailed survey report must be given by publication and 
mailing to all persons owning property affected by the existing 
drainage system.  The hearing may be held at the same time and 
location as the establishment hearing for the improvement.  
    (b) At the hearing, if the drainage authority determines 
that only a separable portion of the existing drainage system 
will be improved and that the portion needs repair, the drainage 
authority shall determine and assess, by order, the 
proportionate cost of the improvement that would be required to 
repair the separable portion of the drainage system to be 
improved.  The order must direct that: 
    (1) the repair portion is allocated as repairs and assessed 
against all property benefited by the entire drainage system, as 
provided by section 86; and 
    (2) the balance of the cost of the improvement is assessed 
in addition to the repair assessment against the property 
benefited by the improvement.  
    Sec. 25.  [106A.221] [IMPROVEMENT OF OUTLETS.] 
    Subdivision 1.  [CONDITIONS FOR IMPROVEMENT OF OUTLETS.] If 
a public or private, proposed or existing drainage system has 
waters draining into an existing drainage system, watercourse, 
or body of water, and the construction or proposed construction 
of the drainage system causes an overflow of the existing 
drainage system, watercourse, or body of water on adjoining 
property, an affected county or the owners of the overflowed 
property may start outlet improvement proceedings under this 
section.  
    Subd. 2.  [PETITION.] (a) A petition must be signed by the 
board of an affected county, by at least 26 percent of the 
resident owners of adjoining overflowed property, or by the 
owners of at least 26 percent of the area of the overflowed 
property.  The petition must: 
    (1) describe the property that has been or is likely to be 
overflowed; 
    (2) state in general terms by number or otherwise the 
drainage systems that have caused or are likely to cause the 
overflow; 
    (3) describe the location of the overflowed drainage 
system, watercourse, or body of water and the outlet; 
    (4) show the necessity of the improvement by enlarging the 
system or controlling the waters by off-take ditches, additional 
outlets, or otherwise;  
    (5) show that the outlet improvement will protect the 
adjoining property from overflow; 
    (6) state that the improvement will be of public benefit 
and utility and improve the public health; and 
    (7) state that the petitioners will pay all costs incurred 
if the proceedings are dismissed or a contract for the 
construction outlet improvement is not awarded.  
    (b) The petitioners, except for a petition made by the 
board, shall give the bond required by section 22. 
    Subd. 3.  [FILING OF PETITION.] The petition shall be filed 
with the county auditor.  If the board makes the petition, it 
must be addressed to the drainage authority and filed with the 
auditor.  If part of the improvement or the overflowed property 
is located in more than one county, the petition must be filed 
with the auditor.  
    Subd. 4.  [JURISDICTION OF BOARD AND DISTRICT COURT.] After 
the petition is filed, the board or joint county drainage 
authority where the petition is filed, has jurisdiction of the 
petition, the improvement, the affected property, and all 
proceedings for the establishment and construction of the outlet 
improvement and the assessment of property benefited by the 
outlet improvement, as provided for establishment and 
construction of a drainage system under this chapter.  
    Subd. 5.  [PRELIMINARY SURVEY REPORT REQUIREMENTS.] In the 
preliminary survey report, the engineer shall show the existing 
or proposed drainage systems that cause the overflow, the 
property drained or to be drained by the drainage system, and 
the names of affected property owners.  
    Subd. 6.  [BENEFITED PROPERTY TO BE DETERMINED BY VIEWERS.] 
If, after the preliminary survey report hearing, a detailed 
survey is ordered and viewers appointed, the viewers shall 
determine and report the benefits to all property from the 
outlet improvement including property drained or to be drained 
by the existing or proposed drainage system.  
    Sec. 26.  [106A.225] [LATERALS.] 
    Subdivision 1.  [PETITION.] (a) Persons that own property 
in the vicinity of an existing drainage system may petition for 
a lateral that connects their property with the drainage 
system.  The petition must be signed by at least 26 percent of 
the resident owners of the property or by the owners of at least 
26 percent of the area of the property traversed by the 
lateral.  The petition must be filed with the auditor, or for 
property in more than one county, the petition must be filed 
with the auditor of the county with the largest property area 
traversed by the lateral.  The petition must: 
    (1) describe in general terms the starting point, general 
course, and terminus of the proposed lateral; 
    (2) describe the property traversed by the lateral; 
    (3) state the necessity to construct the lateral; 
    (4) state that, if constructed, the lateral will be of 
public benefit and utility and promote the public health; 
    (5) request that the lateral be constructed and connected 
with the drainage system; and 
    (6) provide that the petitioners will pay all costs 
incurred if the proceedings are dismissed or if a contract for 
the construction of the lateral is not awarded.  
    (b) The petitioners shall give the bond required by section 
22. 
    Subd. 2.  [ESTABLISHMENT PROCEDURE.] After the petition is 
filed, the procedure to establish and construct the lateral is 
the same as that provided in this chapter to establish a new 
drainage system.  
    Subd. 3.  [AUTHORITY NECESSARY FOR PROPERTY NOT 
ASSESSED.] A lateral may not be constructed to drain property 
that is not assessed benefits for the existing public drainage 
system until express authority for the use of the existing 
system as an outlet for the lateral has been obtained under 
section 52.  
    Sec. 27.  [106A.231] [DISMISSAL OF PROCEEDINGS BY 
PETITIONERS.] 
    A proceeding under this chapter may be dismissed by a 
majority of the petitioners if they own at least 60 percent of 
the area owned by all of the petitioners as described in the 
petition.  The proceeding may be dismissed at any time before 
the proposed drainage system is established after payment of the 
cost of the proceeding.  The drainage authority shall determine 
the cost of the proceeding.  After the proceeding is dismissed 
any other action on the proposed drainage system must begin with 
a new petition.  
    Sec. 28.  [106A.235] [DRAINAGE SYSTEM IN TWO OR MORE 
COUNTIES.] 
    Subdivision 1.  [DESIGNATION.] A petition for a proposed 
drainage system in two or more counties must be designated as a 
joint county drainage system with a number assigned by the 
auditor of the county with the largest area of property in the 
drainage system. 
    Subd. 2.  [JOINT COUNTY DRAINAGE AUTHORITY.] The board 
where a petition for a proposed joint county drainage system is 
filed shall notify the board of each county where property is 
affected by the drainage system and request the boards to meet 
jointly and consider the petition.  The boards shall select five 
of their members at the meeting to be the drainage authority. At 
least one member must be from each board.  The drainage 
authority shall be known as the joint county drainage authority 
with a joint county drainage system number.  A vacancy in the 
membership of the joint county drainage authority must be filled 
by joint action of the boards.  
    Subd. 3.  [TRANSFER OF DRAINAGE SYSTEMS TO WATERSHED 
DISTRICTS NOT AFFECTED.] This section does not affect the 
transfer of a drainage system to the board of managers of a 
watershed district under section 112.65.  
    Sec. 29.  [106A.241] [ENGINEER.] 
    Subdivision 1.  [APPOINTMENT.] Within 30 days after filing 
the petition and bond, the drainage authority shall, by order, 
appoint an engineer to make a preliminary survey within a 
prescribed time.  The engineer is the engineer for the drainage 
system throughout the proceeding and construction unless 
otherwise ordered.  Each appointed engineer must file an oath 
and bond.  The engineer may be removed by the drainage authority 
at any time.  If the engineer position is vacant, the drainage 
authority shall appoint another engineer as soon as possible. 
    Subd. 2.  [OATH; BOND.] An appointed engineer must 
subscribe to an oath to faithfully perform the assigned duties 
in the best manner possible and file a bond with the auditor. 
Within ten days after being appointed, the drainage authority 
shall set an amount of at least $5,000 for the bond.  The bond 
must have adequate surety and be payable to the county where the 
petition is filed, or for a proposed joint county drainage 
system to all counties in the petition.  The bond must be 
conditioned to pay any person or the drainage authority for 
damages and injuries resulting from negligence of the engineer 
while the engineer is acting in the proceedings or construction, 
and provide that the engineer will diligently and honestly 
perform the engineer's duties.  The bond is subject to approval 
by the auditor.  The aggregate liability of the surety for all 
damages may not exceed the amount of the bond.  
    Subd. 3.  [ASSISTANTS; COMPENSATION.] The engineer may 
appoint assistant engineers and hire help necessary to complete 
the engineer's duties.  The engineer is responsible for the 
assistant engineers and may remove them.  The compensation of 
the engineer, assistant engineers, and other employees is 
provided by section 76.  
    Subd. 4.  [ENGINEER'S REPORTS.] The engineer shall make an 
expense report every two weeks after the beginning of the 
engineer's work until the construction contract is awarded.  The 
report must show costs incurred by the engineer and expenses 
incurred under the engineer's direction relating to the 
proceeding, and include the names of the engineer, engineer 
assistants, and employees and the time each was employed, and 
every item of expense incurred by the engineer.  The engineer 
must file this report with the auditor as soon as possible and 
may not incur expenses for the proceeding greater than the 
petitioners' bond.  
    Subd. 5.  [CONSULTING ENGINEER.] After the engineer is 
appointed and before construction of the drainage system is 
finished, the drainage authority may employ an engineer as a 
consulting engineer for the proceeding and construction.  A 
consulting engineer shall advise the engineer and drainage 
authority on engineering matters and problems that may arise 
related to the proceeding and construction of the drainage 
system.  The drainage authority shall determine the compensation 
for the consulting engineer.  
    Sec. 30.  [106A.245] [PRELIMINARY SURVEY AND PRELIMINARY 
SURVEY REPORT.] 
    Subdivision 1.  [SURVEY.] The engineer shall proceed 
promptly to: 
    (1) examine the petition and order; 
    (2) make a preliminary survey of the area likely to be 
affected by the proposed drainage system to enable the engineer 
to determine whether the proposed drainage system is necessary 
and feasible with reference to the environmental and land use 
criteria in section 3, subdivision 1;  
    (3) examine and gather information related to determining 
whether the proposed drainage system substantially affects areas 
that are public waters; and 
    (4) if the proposed drainage system requires construction 
of an open channel, examine the nature and capacity of the 
outlet and any necessary extension. 
    Subd. 2.  [LIMITATION OF SURVEY.] The engineer shall 
restrict the preliminary survey to the drainage area described 
in the petition, except that to secure an outlet the engineer 
may run levels necessary to determine the distance for the 
proper fall.  The preliminary survey must consider the impact of 
the proposed drainage system on the environmental and land use 
criteria in section 3, subdivision 1.  The drainage authority 
may have other areas surveyed after: 
    (1) giving notice by mail of a hearing to survey additional 
areas, to be held at least ten days after the notice is mailed, 
to the petitioners and persons liable on the petitioners' bond; 
    (2) holding the hearing; 
    (3) obtaining consent of the persons liable on the 
petitioners' bond; and 
    (4) ordering the additional area surveyed by the engineer.  
    Subd. 3.  [ADOPTION OF FEDERAL PROJECT.] The engineer may 
approve and include as a part of the report, a project of the 
United States relating to drainage or flood control that is 
within the proposed drainage system area, and may accept data, 
plats, plans, or information relating to the project furnished 
by United States engineers.  The engineer does not need to make 
the preliminary survey if the material furnished by the United 
States is sufficient for the engineer to make the preliminary 
survey report.  
    Subd. 4.  [PRELIMINARY SURVEY REPORT.] The engineer shall 
report the proposed drainage system plan or recommend a 
different practical plan.  The report must give sufficient 
information, in detail, to inform the drainage authority on 
issues related to feasibility, and show changes necessary to 
make the proposed plan practicable and feasible including 
extensions, laterals, and other work.  If the engineer finds the 
proposed drainage system in the petition is feasible and 
complies with the environmental and land use criteria in section 
3, subdivision 1, the engineer shall include in the preliminary 
survey report a preliminary plan of the proposed system showing 
the proposed ditches, tile, laterals, and other improvements, 
the outlet of the system, the watershed of the drainage system, 
and the property likely to be affected and its known owners. The 
plan must show:  
    (1) the elevation of the outlet and the controlling 
elevations of the property likely to be affected referenced to 
standard sea level datum, if practical; 
    (2) the probable size and character of the ditches and 
laterals necessary to make the plan practicable and feasible; 
    (3) the character of the outlet and whether it is 
sufficient; 
    (4) the probable cost of the drains and improvements shown 
on the plan; 
    (5) all other information and data necessary to disclose 
the practicablity, necessity, and feasibility of the proposed 
drainage system; 
    (6) consideration of the project under the environmental 
and land use criteria in section 3, subdivision 1, of the 
proposed drainage system; and 
    (7) other information as ordered by the drainage authority. 
    Sec. 31.  [106A.251] [FILING PRELIMINARY SURVEY REPORT.] 
    The engineer shall file the completed preliminary survey 
report in duplicate with the auditor.  The auditor shall send 
one copy of the report to the director.  If the proposed 
drainage system involves a joint county drainage system, a copy 
of the report must be filed with the auditor of each affected 
county.  
    Sec. 32.  [106A.255] [COMMISSIONER'S PRELIMINARY ADVISORY 
REPORT.] 
    The commissioner shall make a preliminary advisory report 
to the drainage authority with an opinion about the adequacy of 
the preliminary survey report.  The commissioner shall state any 
additional investigation and evaluation that should be done 
under the public waters determination in section 105.37, and the 
environmental and land use criteria in section 3, subdivision 1, 
and cite specific portions of the preliminary survey report that 
are inadequate.  The commissioner shall file an initial 
preliminary advisory report with the auditor before the date of 
the preliminary hearing. The commissioner may request additional 
time for review and evaluation of the preliminary survey report 
if additional time is necessary for proper evaluation.  A 
request for additional time for filing the commissioner's 
preliminary advisory report may not be made more than five days 
after the date of the notice by the auditor that a date is to be 
set for the preliminary hearing.  An extension of time may not 
exceed two weeks after the date of the request.  
    Sec. 33.  [106A.261] [PRELIMINARY HEARING.] 
    Subdivision 1.  [NOTICE.] When the preliminary survey 
report is filed, the auditor shall promptly notify the drainage 
authority.  The drainage authority in consultation with the 
auditor shall set a time, by order, not more than 30 days after 
the date of the order, for a hearing on the preliminary survey 
report.  At least ten days before the hearing, the drainage 
authority after consulting with the auditor shall give notice by 
mail of the time and location of the hearing to the petitioners, 
owners of property, and political subdivisions likely to be 
affected by the proposed drainage system in the preliminary 
survey report.  
    Subd. 2.  [HEARING.] The engineer shall attend the 
preliminary hearing and provide necessary information.  The 
petitioners and all other interested parties may appear and be 
heard.  The commissioner's advisory report on the preliminary 
plan must be publicly read and included in the record of 
proceedings.  
    Subd. 3.  [SUFFICIENCY OF PETITION.] (a) The drainage 
authority shall first examine the petition and determine if it 
meets the legal requirements. 
    (b) If the petition does not meet the legal requirements of 
this chapter, the hearing shall be adjourned and the petition 
referred back to the petitioners.  The petitioners, by unanimous 
action, may amend the petition.  The petitioners may obtain 
signatures of additional property owners as added petitioners. 
    (c) If at the adjourned hearing the petition does not meet 
the legal requirements, the proceedings must be dismissed. 
    Subd. 4.  [DISMISSAL.] (a) The drainage authority shall 
dismiss the proceedings if it determines that: 
    (1) the proposed drainage system is not feasible; 
    (2) the adverse environmental impact is greater than the 
public benefit and utility after considering the environmental 
and land use criteria in section 3, subdivision 1, and the 
engineer has not reported a plan to make the proposed drainage 
system feasible and acceptable; 
    (3) the proposed drainage system is not of public benefit 
or utility; or 
    (4) the outlet is not adequate.  
    (b) If the proceedings are dismissed, any other action on 
the proposed drainage system must begin with a new petition.  
    Subd. 5.  [FINDINGS AND ORDER.] (a) The drainage authority 
shall state, by order, its findings and any changes that must be 
made in the proposed drainage system from those outlined in the 
petition, including changes necessary to minimize or mitigate 
adverse impact on the environment, if it determines that: 
    (1) the proposed drainage system outlined in the petition, 
or modified and recommended by the engineer, is feasible; 
    (2) there is necessity for the proposed drainage system; 
    (3) the proposed drainage system will be of public benefit 
and promote the public health, after considering the 
environmental and land use criteria in section 3, subdivision 1; 
and 
    (4) the outlet is adequate. 
    (b) Changes may be stated by describing them in general 
terms or filing a map that outlines the changes in the proposed 
drainage system with the order.  The order and accompanying 
documents must be filed with the auditor.  
    Subd. 6.  [OUTLET IS EXISTING DRAINAGE SYSTEM.] If the 
outlet is an existing drainage system, the drainage authority 
may determine that the outlet is adequate and obtain permission 
to use the existing drainage system as an outlet.  The drainage 
authority shall assign a number to the proposed drainage system 
and proceed under section 52 to act in behalf of the proposed 
drainage system. 
    Subd. 7.  [EFFECT OF FINDINGS.] (a) For all further 
proceedings, the order modifies the petition and the order must 
be considered with the petition.  
    (b) The findings and order of the drainage authority at the 
preliminary hearing are conclusive only for the signatures and 
legal requirements of the petition, the nature and extent of the 
proposed plan, and the need for a detailed survey, and only for 
the persons or parties shown by the preliminary survey report as 
likely to be affected by the proposed drainage system.  All 
questions related to the practicability and necessity of the 
proposed drainage system are subject to additional investigation 
and consideration at the final hearing.  
    Sec. 34.  [106A.265] [ORDER FOR DETAILED SURVEY AND 
DETAILED SURVEY REPORT.] 
    Subdivision 1.  [ORDER.] When the preliminary hearing order 
is filed with the auditor, the drainage authority shall order 
the engineer to make a detailed survey with plans and 
specifications for the proposed drainage system and submit a 
detailed survey report to the drainage authority as soon as 
possible.  
    Subd. 2.  [WAIVER.] The drainage authority may waive the 
order for and the detailed survey if it determines that adequate 
data, plans, and specifications have been furnished by a United 
States engineer.  
    Sec. 35.  [106A.271] [DETAILED SURVEY.] 
    Subdivision 1.  [SURVEY AND EXAMINATION.] When an order for 
a detailed survey is filed, the engineer shall proceed to survey 
the lines of the proposed drainage system in the preliminary 
hearing order, and survey and examine affected property. 
    Subd. 2.  [SURVEY REQUIREMENTS.] All drainage lines must be 
surveyed in 100 foot stations and elevations must be based on 
standard sea level datum, if practical.  Bench marks must be 
established on permanent objects along the drainage line, not 
more than one mile apart.  Field notes made by the engineer must 
be entered in bound field books and preserved by the engineer 
until they are filed with the auditor. 
    Sec. 36.  [106A.275] [ENGINEER'S VARIANCE FROM DRAINAGE 
AUTHORITY ORDER.] 
    (a) In planning a proposed drainage system, the engineer 
may vary from the starting point and the line and plan described 
by the preliminary hearing order if necessary to drain the 
property likely to be assessed in the proposed drainage system. 
    (b) The engineer may:  
    (1) survey and recommend the location of additional 
necessary ditches; 
    (2) where better results will be accomplished and more 
desirable outlets secured, provide for the extension of the 
outlet; and 
    (3) provide for different parts of the drainage to flow in 
different directions with more than one outlet.  
    (c) The open ditches do not have to connect if they drain 
the area to be affected in the petition.  The variance must be 
reported with similar information in the detailed survey report. 
    Sec. 37.  [106A.281] [SOIL SURVEY.] 
    The engineer shall make a soil survey if:  (1) the drainage 
authority orders a soil survey; (2) the commissioner requests a 
soil survey; or (3) the engineer determines a soil survey is 
necessary.  The soil survey must show the nature and character 
of the soil in the proposed drainage area and include the 
engineer's findings from the soil survey.  The report on the 
soil survey must be included in the detailed survey report or 
reported and filed separately before the final hearing.  
    Sec. 38.  [106A.285] [DETAILED SURVEY REPORT.] 
    Subdivision 1.  [REPORT AND INFORMATION REQUIRED.] The 
engineer shall prepare a detailed survey report that includes 
the data and information in this section. 
    Subd. 2.  [MAP.] A complete map of the proposed drainage 
system must be drawn to scale, showing: 
    (1) the terminus and course of each drain and whether it is 
ditch or tile, and the location of other proposed drainage works;
    (2) the location and situation of the outlet; 
    (3) the watershed of the proposed drainage system and the 
sub-watershed of main branches, if any, with the location of 
existing highway bridges and culverts; 
    (4) all property affected, with the names of the known 
owners; 
    (5) public roads and railways affected; 
    (6) the outline of any lake basin, wetland, or public water 
body affected; and 
    (7) other physical characteristics of the watershed 
necessary to understand the proposed drainage system.  
    Subd. 3.  [PROFILE OF DRAINAGE LINES.] A profile of all 
proposed drainage lines must be presented showing, graphically, 
the elevation of the ground and gradient at each 100 foot 
station, and the station number at each section line and at each 
property line.  The profile must show information necessary to 
understand it, including, in the case of an open ditch, the 
bottom width and side slope and, in the case of a tiled ditch, 
the size of tile. 
    Subd. 4.  [BRIDGE AND CULVERT PLANS.] Plans for private 
bridges and culverts to be constructed by and as a part of the 
proposed drainage system and plans for other works to be 
constructed for the proposed drainage system must be presented. 
A list must be made that shows the required minimum hydraulic 
capacity of bridges and culverts at railways and highways that 
cross ditches, and at other prospective ditch crossings where 
bridges and culverts are not specified to be constructed as part 
of the proposed drainage system.  Plans and estimates of the 
cost of highway bridges and culverts must be prepared for the 
viewers to determine benefits and damages.  
    Subd. 5.  [TABULAR STATEMENT OF EXCAVATION, CONSTRUCTION, 
AND COST.] A tabular statement must be prepared showing:  
    (1) the number of cubic yards of excavation, linear feet of 
tile, and average depth on each tile line; 
    (2) the bridges, culverts, and works to be constructed 
under the plans for the system; and 
    (3) the estimated unit cost of each item, a summary of the 
total cost, and an estimate of the total cost of completing the 
proposed drainage system that includes supervision and other 
costs.  
    Subd. 6.  [RIGHT-OF-WAY ACREAGE.] The acreage must be shown 
that will be taken for ditch right-of-way on each government 
lot, 40 acre tract, or fraction of a lot or tract under separate 
ownership.  
    Subd. 7.  [DRAIN TILE SPECIFICATIONS.] Specifications for 
drain tile must be given that comply with the requirements of 
the American Society for Testing Materials standard 
specifications for drain tile, except where the engineer 
requires tile of a special, higher quality for certain tile 
depths or soil conditions.  
    Subd. 8.  [SOIL SURVEY REPORT.] If required under section 
37, the report on the soil survey must be included in the 
detailed survey report or reported and filed separately before 
the final hearing.  
    Subd. 9.  [RECOMMENDATION FOR DIVISION OF WORK.] If 
construction of the proposed drainage system would be more 
economical, the engineer may recommend:  (1) that the work be 
divided into sections and contracted separately; (2) that the 
ditch and tile work or tile and labor on the system be 
contracted separately, or (3) the time and manner for the work 
to be completed.  
    Subd. 10.  [OTHER INFORMATION ON PRACTICABILITY AND 
NECESSITY OF DRAINAGE SYSTEM.] Other data and information to 
inform the drainage authority of the practicability and 
necessity of the proposed drainage system must be made available 
including a comprehensive examination and the recommendation by 
the engineer regarding the environmental and land use criteria 
in section 3, subdivision 1. 
    Subd. 11.  [OUTLET IN ANOTHER STATE.] If an outlet is only 
practical in an adjoining state, the engineer shall describe the 
right-of-way needed and the cost of obtaining the right-of-way 
and constructing the outlet. 
    Subd. 12.  [COMPLETION.] The engineer shall prepare the 
detailed survey and complete the detailed survey report, in 
duplicate, as specified in this section.  
    Sec. 39.  [106A.291] [FILING DETAILED SURVEY REPORT.] 
    The engineer must file the detailed survey report with the 
auditor where the proceedings are pending and the auditor must 
deliver a copy of the detailed survey report to the 
commissioner.  The engineer must also file copies of the 
detailed survey report with the auditors of any affected 
counties. 
    Sec. 40.  [106A.295] [REVISION OF ENGINEER'S DETAILED 
SURVEY REPORT AFTER ACCEPTANCE.] 
    After the final acceptance of the proposed drainage system, 
the engineer shall revise the plan, profiles, and designs of 
structures to show the project as actually constructed on the 
original tracings.  The engineer shall file the revised detailed 
survey report with the auditor.  The auditor shall forward the 
original or a copy to the director as a permanent record. 
    Sec. 41.  [106A.301] [COMMISSIONER'S FINAL ADVISORY 
REPORT.] 
    (a) The commissioner shall examine the detailed survey 
report and within 30 days of receipt make a final advisory 
report to the drainage authority.  The final advisory report 
must state whether the commissioner:  
    (1) finds the detailed survey report is incomplete and not 
in accordance with the provisions of this chapter, specifying 
the incomplete or nonconforming provisions; 
    (2) approves the detailed survey report as an acceptable 
plan to drain the property affected; 
    (3) does not approve the plan and recommendations for 
changes; 
    (4) finds the proposed drainage system is not of public 
benefit or utility under the environmental and land use criteria 
in section 3, subdivision 1, specifying the facts and evidence 
supporting the findings; or 
    (5) finds a soil survey is needed, and, if it is, makes a 
request to the engineer to make a soil survey.  
    (b) The commissioner shall direct the final advisory report 
to the drainage authority and file it with the auditor.  
    Sec. 42.  [106A.305] [VIEWERS' APPOINTMENT AND 
QUALIFICATION.] 
    Subdivision 1.  [APPOINTMENT.] When the order for a 
detailed survey is made, the drainage authority shall, by order, 
appoint viewers consisting of three disinterested resident 
property owners of the counties affected by the proposed 
drainage system. 
    Subd. 2.  [AUDITOR'S ORDER FOR FIRST MEETING.] Within five 
days after the detailed survey report is filed, the auditor 
shall, by order, designate the time and location for the first 
meeting of the viewers, and issue a copy to the viewers of the 
auditor's order and a certified copy of the order appointing the 
viewers.  
    Subd. 3.  [FIRST MEETING.] At the first meeting and before 
beginning their duties, the viewers shall subscribe to an oath 
to faithfully perform their duties.  If an appointed viewer does 
not qualify for any reason, the auditor shall designate another 
qualified person to take the disqualified viewer's place.  
    Sec. 43.  [106A.311] [VIEWERS' DUTIES.] 
    The viewers, with or without the engineer, shall determine 
the benefits and damages to all property affected by the 
proposed drainage system and make a viewers' report.  
    Sec. 44.  [106A.315] [ASSESSMENT OF DRAINAGE BENEFITS AND 
DAMAGES.] 
    Subdivision 1.  [STATE LAND.] Property owned by the state 
must have benefits and damages reported in the same manner as 
taxable lands subject to the provisions relating to conservation 
areas in section 3, subdivision 2. 
    Subd. 2.  [GOVERNMENT PROPERTY.] The viewers shall report 
the benefits and damages to the state, counties, and 
municipalities from the proposed drainage system.  
    Subd. 3.  [PUBLIC ROADS.] If a public road or street is 
benefited or damaged, the state, county, or political 
subdivision that is the governmental unit with the legal duty of 
maintaining the road or street, must be assessed benefits or 
damages to the road or street, except that benefits and damages 
for bridges and culverts must be assessed to the governmental 
unit that has the legal duty to construct and maintain the 
bridge or culvert under section 60.  
    Subd. 4.  [RAILWAY AND OTHER UTILITIES.] The viewers shall 
report the benefits and damages to railways and other utilities, 
including benefits and damages to property used for railway or 
other utility purposes.  
    Subd. 5.  [EXTENT OF BENEFITS.] The viewers shall determine 
the amount of benefits to all property benefited, whether the 
property is benefited immediately by the construction of the 
proposed drainage system or the proposed drainage system can 
become an outlet for drainage, makes an outlet more accessible, 
or otherwise directly benefits the property.  
    Subd. 6.  [BENEFITS FOR PROPOSED DRAINAGE SYSTEM AS 
OUTLET.] (a) If the proposed drainage system furnishes an outlet 
to an existing drainage system and benefits the property drained 
by the existing system, the viewers shall equitably determine 
and assess:  
    (1) the benefits of the proposed drainage system to each 
tract or lot drained by the existing drainage system; 
    (2) a single amount as an outlet benefit to the existing 
drainage system; or 
    (3) benefits on a watershed acre basis.  
    (b) Assessments that conform with the provisions in this 
subdivision are valid.  If a single sum is assessed as an outlet 
benefit, the lien for the assessment must be pro-rated on all 
property benefited by the existing drainage system in proportion 
to the benefits determined in the existing drainage system 
proceeding.  
    Sec. 45.  [106A.321] [VIEWERS' REPORT.] 
    Subdivision 1.  [REQUIREMENTS.] The viewers' report must 
show, in tabular form, for each lot, 40 acre tract, and fraction 
of a lot or tract under separate ownership that is benefited or 
damaged: 
    (1) a description of the lot or tract, under separate 
ownership, that is benefited or damaged; 
    (2) the names of the owners as they appear on the current 
tax records of the county; 
    (3) the number of acres in each tract or lot; 
    (4) the number and value of acres added to a tract or lot 
by the proposed drainage of meandered lakes; 
    (5) the damage, if any, to riparian rights; and 
    (6) the amount that each tract or lot will be benefited or 
damaged. 
    Subd. 2.  [DISAGREEMENT OF VIEWERS.] If the viewers are 
unable to agree, each viewer shall separately state findings on 
the disagreed issue.  A majority of the viewers may perform the 
required duties under this chapter.  
    Subd. 3.  [FILING.] When the viewers complete their duties, 
they shall file the viewers' report with the auditor of each 
affected county.  A detailed statement must be filed with the 
viewers' report showing the actual time the viewers were engaged 
and the costs incurred.  The viewers shall perform their duties 
and complete the viewers' report as soon as possible after their 
first meeting. 
    Sec. 46.  [106A.325] [FINAL HEARING.] 
    Subdivision 1.  [TIME.] Promptly after the filing of the 
viewers' report and the commissioner's final advisory report, 
the drainage authority after consulting with the auditor shall 
set a time and location for the final hearing on the petition, 
the detailed survey report, and the viewers' report.  The 
hearing must be set 25 to 50 days after the date of the final 
hearing notice. 
    Subd. 2.  [NOTICE.] (a) The final hearing notice must state:
    (1) that the petition is pending; 
    (2) that the detailed survey report is filed; 
    (3) that the viewers' report is filed; 
    (4) the time and place set for the final hearing; 
    (5) a brief description of the proposed drainage system, 
giving in general terms the starting point, terminus, and 
general course of the main ditch and branches; 
    (6) a description of property benefited and damaged, and 
the names of the owners of the property; and 
    (7) the municipal and other corporations affected by the 
proposed drainage system as shown by the detailed survey report 
and viewers' report.  
    (b) Names may be listed in a narrative form and property 
affected may be separately listed in narrative form by 
governmental sections or otherwise.  
    (c) For a joint county proceeding, separate notice may be 
prepared for each county affected, showing the portion of the 
proposed drainage system and the names and descriptions of 
affected property in the county. 
    Subd. 3.  [METHOD OF NOTICE.] The auditor shall notify the 
drainage authority, auditors of affected counties, and all 
interested persons of the time and location of the final hearing 
by publication, posting, and mail.  A printed copy of the final 
hearing notice for each affected county must be posted at least 
three weeks before the date of the final hearing at the front 
door of the courthouse in each county.  Within one week after 
the first publication of the notice, the auditor shall give 
notice by mail of the time and location of the final hearing to 
the commissioner, all property owners, and others affected by 
the proposed drainage system and listed in the detailed survey 
report and the viewers' report.  
    Subd. 4.  [DEFECTIVE NOTICE.] If the final hearing notice 
is not given or is not legally given, the auditor shall properly 
publish, post, and mail the notice or provide the notice under 
the provisions to cure defective notice in section 7. 
    Sec. 47.  [106A.331] [JURISDICTION OF PROPERTY BY DRAINAGE 
AUTHORITY.] 
    After the final hearing notice is given, the drainage 
authority has jurisdiction of all property described in the 
detailed survey report and viewers' report, of the persons and 
municipalities named in the reports, and of persons having an 
interest in a mortgage, lien, or encumbrance against property 
described in the reports. 
    Sec. 48.  [106A.335] [PROCEEDINGS AT THE FINAL HEARING.] 
    Subdivision 1.  [CONSIDERATION OF PETITION AND REPORTS.] At 
the time and location for the final hearing specified in the 
notice, or after the hearing adjourns, the drainage authority 
shall consider the petition for the drainage system, with all 
matters pertaining to the detailed survey report, the viewers' 
report, and the commissioner's final advisory report.  The 
drainage authority shall hear and consider the testimony 
presented by all interested parties.  The engineer or the 
engineer's assistant and at least one viewer shall be present. 
The director may appear and be heard.  If the director does not 
appear personally, the final advisory report shall be read 
during the hearing.  The final hearing may be adjourned and 
reconvened as is necessary.  
    Subd. 2.  [CHANGES IN DRAINAGE PLAN.] If the drainage 
authority determines that the general plan reported by the 
engineer may be improved by changes, or that the viewers have 
made an inequitable assessment of benefits or damages to any 
property, the drainage authority may amend the detailed survey 
report or the viewers' report, and make necessary and proper 
findings in relation to the reports.  The drainage authority may 
resubmit matters to the engineer or to the viewers for immediate 
consideration.  The engineer or viewers shall proceed promptly 
to reconsider the resubmitted matters and shall make and file 
the amended findings and reports.  The amended reports are a 
part of the original reports.  
    Subd. 3.  [REEXAMINATION.] If the drainage authority 
determines that property not included in the notice should be 
included and assessed or that the engineer or viewers, or both, 
should reexamine the proposed drainage system or the property 
benefited or damaged by the system, the drainage authority may 
resubmit the reports to the engineer and viewers.  If a report 
is resubmitted the final hearing may be continued as is 
necessary to make the reexamination and reexamination report.  
If the reexamination report includes property not included in 
the original report, the drainage authority may, by order, 
adjourn the hearing and direct the auditor to serve or publish, 
post, and mail a final hearing notice with reference to all 
property not included in the previous notice.  The jurisdiction 
of the drainage authority continues in the property given proper 
notice, and new or additional notice is not required for that 
property. 
    Sec. 49.  [106A.341] [DRAINAGE AUTHORITY FINAL ORDER.] 
    Subdivision 1.  [DISMISSAL OF PROCEEDINGS.] The drainage 
authority must dismiss the proceedings and petition, by order, 
if it determines that:  
    (1) the benefits of the proposed drainage system are less 
than the total cost, including damages awarded; 
    (2) the proposed drainage system will not be of public 
benefit and utility; or 
    (3) the proposed drainage system is not practicable after 
considering the environmental and land use criteria in section 
3, subdivision 1.  
    Subd. 2.  [ESTABLISHMENT OF PROPOSED DRAINAGE SYSTEM.] (a) 
The drainage authority shall establish, by order, a proposed 
drainage system if it determines that:  
    (1) the detailed survey report and viewers' report have 
been made and other proceedings have been completed under this 
chapter; 
    (2) the reports made or amended are complete and correct; 
    (3) the damages and benefits have been properly determined; 
    (4) the estimated benefits are greater than the total 
estimated cost, including damages; 
    (5) the proposed drainage system will be of public utility 
and benefit, and will promote the public health; and 
    (6) the proposed drainage system is practicable.  
    (b) The order must contain the drainage authority's 
findings, adopt and confirm the viewers' report as made or 
amended, and establish the proposed drainage system as reported 
and amended.  
    Sec. 50.  [106A.345] [APPORTIONMENT OF COST FOR JOINT 
COUNTY DRAINAGE SYSTEMS.] 
    For joint county proceedings, the auditor where the 
petition is filed shall file a certified copy of the viewers' 
report with the auditor of each affected county within 20 days 
after the date of the final order establishing the system.  When 
the final order to establish the drainage system is made, the 
drainage authority shall determine and order the percentage of 
the cost of the drainage system to be paid by each affected 
county.  The cost shall be in proportion to the benefits 
received, unless there is a contrary reason.  An auditor of an 
affected county may petition the drainage authority after the 
final order is made to determine and order the percentage of 
costs to be paid by the affected counties.  The drainage 
authority shall hold a hearing five days after giving written 
notice to the auditor of each affected county.  After giving the 
notice to the auditors of the affected counties, the drainage 
authority may, at any time that it is necessary, modify an order 
or make an additional order to allocate the cost among the 
affected counties.  
    Sec. 51.  [106A.351] [REDETERMINATION OF BENEFITS.] 
    Subdivision 1.  [CONDITIONS TO REDETERMINE BENEFITS; 
APPOINTMENT OF VIEWERS.] If the drainage authority determines 
that the original benefits determined in a drainage proceeding 
do not reflect reasonable present day land values or that the 
benefited areas have changed, or if more than 50 percent of the 
property owners benefited by a drainage system petition for 
correction of an error that was made at the time of the 
proceedings that established the drainage system, the drainage 
authority may appoint three viewers to redetermine and report 
the benefits and the benefited areas.  
    Subd. 2.  [HEARING AND PROCEDURE.] The drainage authority 
shall hold a hearing on the report and confirm the benefits and 
benefited areas.  The redetermination of benefits shall proceed 
as provided for viewers and the viewers' report in sections 43 
to 45, and for the final hearing under sections 46, 48, and 49.  
    Subd. 3.  [REDETERMINED BENEFITS REPLACE ORIGINAL 
BENEFITS.] The redetermined benefits and benefited areas must be 
used in place of the original benefits and benefited areas in 
all subsequent proceedings relating to the drainage system.  
    Subd. 4.  [APPEAL.] A person aggrieved by the 
redetermination of benefits and benefited areas may appeal from 
the order confirming the benefits and benefited areas under 
section 18. 

                      OUTLETS FOR DRAINAGE SYSTEMS 
    Sec. 52.  [106A.401] [USE OF DRAINAGE SYSTEM AS AN OUTLET.] 
    Subdivision 1.  [COMMISSIONER MUST RECOGNIZE DRAINAGE 
OUTLET PROCEEDINGS WHEN PURCHASING WETLANDS.] If the 
commissioner purchases wetlands under section 97.481, the 
commissioner must recognize that when a majority of landowners 
or owners of a majority of the land in the watershed, petition 
for a drainage outlet, the state should not interfere with or 
unnecessarily delay the drainage proceedings if the proceedings 
are conducted according to this chapter.  
    Subd. 2.  [EXPRESS AUTHORITY NECESSARY.] After the 
construction of a drainage system, a public or private drainage 
system that drains property not assessed for benefits for the 
established drainage system may not be constructed to use the 
established drainage system as an outlet without obtaining 
express authority from the drainage authority of the drainage 
system proposed to be used as the outlet.  This section is 
applicable to the construction of a public or private drainage 
system that outlets water into an established drainage system 
regardless of the actual physical connection. 
    Subd. 3.  [PETITION.] A person seeking authority to use an 
established drainage system as an outlet must petition the 
drainage authority.  When the petition is filed, the drainage 
authority in consultation with the auditor shall set a time and 
location for a hearing on the petition and shall give notice by 
mail and notice by publication of the hearing.  The auditor must 
be paid a fee of $5 plus 30 cents for each notice mailed in 
excess of ten.  
    Subd. 4.  [HEARING.] At the hearing the drainage authority 
shall consider the capacity of the outlet drainage system.  If 
express authority is given to use the drainage system as an 
outlet, the drainage authority shall state, by order, the terms 
and conditions for use of the established drainage system as an 
outlet and shall set the amount to be paid as an outlet fee. The 
order must describe the property to be benefited by the drainage 
system and must state the amount of benefits to the property for 
the outlet.  The property benefited is liable for assessments 
levied after that time in the drainage system, on the basis of 
the benefits as if the benefits had been determined in the order 
establishing the drainage system. 
    Subd. 5.  [PRIVATE DRAINAGE SYSTEM MAY NOT BE CONSTRUCTED 
WITHOUT PAYMENT OF OUTLET FEE.] A private drainage system may 
not be constructed to use the established drainage system as an 
outlet until the outlet fee, set by order, is paid by the 
petitioner to the county treasurer where petitioner's property 
is located.  
    Subd. 6.  [PAYMENT OF OUTLET FEE.] The outlet fee for a 
proposed drainage system is a part of the cost of the proposed 
drainage system and is to be paid by assessment against the 
property benefited by the proposed drainage system, under 
section 67, and credited to the established drainage system 
account. 
    Sec. 53.  [106A.405] [OUTLETS IN ADJOINING STATES.] 
    In any drainage proceeding, at the hearing on the detailed 
survey report and viewers' report, if the drainage authority 
determines that a proper outlet for the drainage system does not 
exist, except through property in an adjoining state, the 
drainage authority may adjourn the hearing.  If the hearing is 
adjourned the drainage authority shall require the auditor or, 
for a joint county drainage system, the auditors of affected 
counties to procure an option to acquire the needed right-of-way 
at an expense not exceeding the estimated cost specified in the 
detailed survey report.  The order establishing the drainage 
system may not be made until the option is procured.  If the 
option is procured and the drainage system established, the 
option shall be exercised and the cost of the right-of-way shall 
be paid as a part of the cost of the drainage system.  
    Sec. 54.  [106A.411] [DRAINAGE SYSTEM AS OUTLET FOR 
MUNICIPALITY.] 
    Subdivision 1.  [PETITION.] A municipality may use a 
drainage system as an outlet for its municipal drainage system 
or the overflow from the system under the provisions of this 
section.  The municipality must petition to the drainage 
authority to use the drainage system.  The petition must: 
    (1) show the necessity for the use of the drainage system 
as an outlet; 
    (2) show that the use of the drainage will be of public 
benefit and utility and promote the public health; 
    (3) be accompanied by a plat showing the location of the 
drainage system and the location of the municipal drainage 
system; and 
    (4) be accompanied by specifications showing the plan of 
connection from the municipal drainage system to the drainage 
system.  
    Subd. 2.  [APPROVAL BY POLLUTION CONTROL AGENCY.] The plan 
for connecting the municipal drainage system to the drainage 
system must be approved by the pollution control agency. 
    Subd. 3.  [FILING; NOTICE.] (a) If proceedings to establish 
the drainage system to be used as an outlet are pending, the 
petition must be filed with the auditor.  The municipal drainage 
system petition must be presented to the drainage authority at 
the final hearing to consider the detailed survey report and 
viewers' report.  Notice of the municipal drainage system 
petition must be included in the final hearing notice. 
    (b) If the drainage system to be used as an outlet is 
established, the municipal drainage system petition must be 
filed with the auditor.  When the petition is filed, the 
drainage authority in consultation with the auditor shall, by 
order, set a time and place for hearing on the petition.  Notice 
of the hearing must be given by publication and by mailed notice 
to the auditor of each affected county. 
    Subd. 4.  [HEARING AND ORDER.] (a) At the hearing the 
drainage authority may receive all evidence of interested 
parties for or against the granting of the petition.  The 
drainage authority, by order, may authorize the municipality to 
use the drainage system as an outlet, subject to the conditions 
that are necessary and proper to protect the rights of the 
parties and safeguard the interests of the general public, if 
the drainage authority determines: 
    (1) that a necessity exists for the use of the drainage 
system as an outlet for the municipal drainage system or the 
overflow from the system; 
    (2) that use of the drainage system will be of public 
utility and promote the public health; and 
    (3) that the proposed connection conforms to the 
requirements of the pollution control agency and provides for 
the construction and use of proper disposal works.  
    (b) The drainage authority must, by order, make the 
municipality a party to the drainage proceedings and determine 
the benefits from using the drainage system as an outlet. 
    Subd. 5.  [BENEFITS AND ASSESSMENTS IF DRAINAGE SYSTEM IS 
ESTABLISHED.] If the drainage system is established, the 
drainage authority must determine the amount the municipality 
must pay for the privilege of using the drainage system as an 
outlet.  The amount must be paid to the affected counties and 
credited to the account of the drainage system used as an 
outlet.  The municipality is liable for all subsequent liens and 
assessments for the repair and maintenance of the drainage 
system in proportion to the benefits, as though the benefits 
were determined in the order establishing the drainage system. 

                    CONSTRUCTION OF DRAINAGE SYSTEM  
    Sec. 55.  [106A.501] [CONTRACT AND BOND.] 
    Subdivision 1.  [PREPARATION.] The county attorney, the 
engineer, and the attorney for the petitioners shall prepare the 
contract and bond.  The contract and bond must include the 
provisions required by this chapter and section 574.26 for bonds 
given by contractors for public works and must be conditioned as 
provided by section 574.26 for the better security of the 
contracting counties and parties performing labor and furnishing 
material in performance of the contract.  The prepared contract 
and bond must be attached and provided to the contractor for 
execution.  
    Subd. 2.  [CONTRACTOR'S BOND.] The contractor shall file a 
bond with the auditor for an amount not less than 75 percent of 
the contract price of the work.  The bond must have adequate 
surety and be approved by the auditor.  The bond must provide 
that the surety for the bond is liable for all damages resulting 
from a failure to perform work under the contract, whether the 
work is resold or not, and that any person or political 
subdivision showing damages from the failure to perform work 
under the contract may maintain an action against the bond in 
their own names.  Actions may be successive in favor of all 
persons injured, but the aggregate liability of the surety for 
all the damages may not exceed the amount of the bond.  The 
surety is liable for the tile work guaranteed by the 
contractor.  The contractor is considered a public officer and 
the bond an official bond within the meaning of section 574.24 
construing the official bonds of public officers as security to 
all persons and providing for actions on the bonds by a party 
that is damaged.  
    Subd. 3.  [CONTRACT.] The contract must contain a specific 
description of the work to be done, either expressly or by 
reference to the plans and specifications, and must provide that 
the work must be done and completed as provided in the plans and 
specifications and subject to the inspection and approval of the 
engineer.  The contract must provide that time is of the essence 
of the contract, and that if there is a failure to perform the 
work according to the terms of the contract within the time 
given in the original contract or as extended, the contractors 
shall forfeit and pay counties an amount stated in the contract 
as liquidated damages.  The amount must be fixed by the auditor 
for each day that the failure of performance continues.  
    Subd. 4.  [CONTRACT PROVISIONS FOR CHANGES DURING 
CONSTRUCTION.] The contract must give the engineer the right, 
with the consent of the drainage authority, to modify the 
detailed survey report, plans, and specifications as the work 
proceeds and as circumstances require.  The contract must 
provide that the increased cost resulting from the changes will 
be paid by the drainage authority to the contractor at a rate 
not greater than the amount for similar work in the contract.  A 
change may not be made that will substantially impair the 
usefulness of any part of the drainage system, substantially 
alter its original character, or increase its total cost by more 
than ten percent of the total original contract price.  A change 
may not be made that will cause the cost to exceed the total 
estimated benefits found by the drainage authority, or that will 
cause any detrimental effects to the public interest under 
section 3, subdivision 1.  
    Subd. 5.  [CONTRACT WITH FEDERAL UNIT.] If any portion of 
the work is to be done by the United States or an agency of the 
United States, a bond or contract is not necessary for that 
portion of the work, except that a contract must be made if the 
United States or its agencies require a contract with the local 
governmental units.  The contract must contain the terms, 
conditions, provisions, and guaranties required by the United 
States or its agencies to proceed with the work.  
    Subd. 6.  [GUARANTY OF TILE WORK.] If tile is used to 
construct any part of the drainage system, a majority of the 
persons affected may file a written request with the auditor to 
contract the tile work separately.  The request must be filed 
before advertising for the sale of the work has begun.  If the 
request is properly made, the tile work must be contracted 
separately.  The contractor must guarantee the tile work under 
the contract for three years after its completion against any 
fault or negligence on the part of the contractor.  The 
advertisement for bids must include this requirement.  
    Subd. 7.  [MODIFICATION OF CONTRACT BY AGREEMENT.] This 
chapter does not prevent the persons with property affected by 
the construction of a drainage system from uniting in a written 
agreement with the contractor and the surety of the contractor's 
bond to modify the contract as to the manner or time when any 
portion of the drainage system is constructed, if the 
modification is recommended, in writing, by the engineer and 
approved by the drainage authority.  
    Sec. 56.  [106A.505] [AWARDING THE CONSTRUCTION CONTRACT.] 
    Subdivision 1.  [AUDITORS AND DRAINAGE AUTHORITY TO 
PROCEED.] Thirty days after the order establishing a drainage 
system is filed, the auditor and the drainage authority or, for 
a joint county drainage system, a majority of the auditors of 
the affected counties shall proceed to award the contract to 
construct the drainage system.  
    Subd. 2.  [PENDING APPEAL OF BENEFITS AND DAMAGES.] If an 
appeal regarding the determination of benefits and damages is 
made within 30 days after the order establishing the drainage 
system has been filed, a contract may not be awarded until the 
appeal has been determined, unless the drainage authority orders 
the contract awarded.  The auditor of an affected county or an 
interested person may request the drainage authority to make the 
order.  If the request is not made by an affected auditor, the 
auditors of affected counties must be given notice five days 
before the hearing on the request.  
    Subd. 3.  [NOTICE OF CONTRACT AWARDING.] The auditor of an 
affected county shall give notice of the awarding of the 
contract by publication in a newspaper in the county.  The 
notice must state the time and location for awarding the 
contract.  For a joint county drainage system the auditors shall 
award the contract at the office of the auditor where the 
proceedings are pending.  If the estimated cost of construction 
is more than $3,000, the auditor must also place a notice in a 
drainage construction trade paper.  The trade paper notice must 
state: 
    (1) the time and location for awarding the contract; 
    (2) the approximate amount of work and its estimated cost; 
    (3) that bids may be for the work as one job, or in 
sections, or separately, for bridges, ditches and open work, 
tile, or tile construction work, if required or advisable; 
    (4) that each bid must be accompanied by a certified check 
or a bond furnished by an approved surety corporation payable to 
the auditors of affected counties for ten percent of the bid, as 
security that the bidder will enter into a contract and give a 
bond as required by section 55; and 
    (5) that the drainage authority reserves the right to 
reject any and all bids. 
    Subd. 4.  [ENGINEER SHALL ATTEND AWARDING OF CONTRACT.] The 
engineer shall attend the meeting to award the contract.  A bid 
may not be accepted without the engineer's approval of 
compliance with plans and specifications.  
    Subd. 5.  [HOW CONTRACT MAY BE AWARDED.] The contract may 
be awarded in one job, in sections, or separately for labor and 
material and must be let to the lowest responsible bidder. 
    Subd. 6.  [BIDS EXCEEDING 30 PERCENT OF ESTIMATED COST NOT 
ACCEPTED.] Bids that in the aggregate exceed the total estimated 
cost of construction by more than 30 percent may not be accepted.
    Subd. 7.  [AFFECTED COUNTIES CONTRACT THROUGH AUDITOR.] The 
chairman of the drainage authority and the auditor of each 
affected county shall contract, in the names of their respective 
counties, to construct the drainage system in the time and 
manner and according to the plans and specifications and the 
contract provisions in this chapter.  
    Subd. 8.  [WORK DONE BY FEDERAL GOVERNMENT.] If any of the 
drainage work is to be done by the United States or its 
agencies, a notice of awarding that contract does not need to be 
published and a contract for that construction is not 
necessary.  Affected municipalities may contract or arrange with 
the United States or its agencies for cooperation or assistance 
in constructing, maintaining, and operating the drainage system, 
for control of waters in the district, or for making a survey 
and investigation or reports on the drainage system.  The 
municipalities may provide required guaranty and protection to 
the United States or its agencies.  
    Sec. 57.  [106A.511] [PROCEDURE IF CONTRACT IS NOT AWARDED 
DUE TO BIDS OR COSTS.] 
    Subdivision 1.  [CONDITIONS TO USE PROCEDURE IN THIS 
SECTION.] The procedure in this section may be used if after a 
drainage system is established: 
    (1) the only bids received are for more than 30 percent in 
excess of the engineer's estimated cost, or in excess of the 
benefits, less damages and other costs; or 
    (2) a contract is awarded, but due to unavoidable delays 
not caused by the contractor, the contract cannot be completed 
for an amount equal to or less than the benefits, less damages 
and other costs.  
    Subd. 2.  [PETITION AFTER COST ESTIMATE ERROR OR CHANGE TO 
LOWER COST.] A person interested in the drainage system may 
petition the drainage authority if the person determines that 
the engineer made an error in the estimate of the drainage 
system cost or that the plans and specifications could be 
changed in a manner materially affecting the cost of the 
drainage system without interfering with the efficiency.  The 
petition must state the person's determinations and request that 
the detailed survey report and viewers' report be referred back 
to the engineer and to the viewers for additional consideration. 
    Subd. 3.  [PETITION AFTER EXCESSIVE COST DUE TO 
INFLATION.] (a) A person interested in the drainage system may 
petition the drainage authority for an order to reconsider the 
detailed survey report and viewers' report if the person 
determines:  
    (1) that bids were received only for a price more than 30 
percent in excess of the detailed survey report estimate because 
inflation increased the construction cost between the time of 
the detailed survey cost estimate and the time of awarding the 
contract; or 
    (2) that after the contract was awarded there was 
unavoidable delay not caused by the contractor, and between the 
time of awarding the contract and completion of construction 
inflation increased construction costs resulting in the contract 
not being completed for an amount equal to or less than the 
assessed benefits.  
    (b) The person may request in the petition that the 
drainage authority reconsider the original cost estimate in the 
detailed survey report and viewers' report and adjust the cost 
estimate consistent with the increased construction cost.  
    Subd. 4.  [HEARING ORDERED AFTER RECEIPT OF 
PETITION.] After receiving a petition, the drainage authority 
shall order a hearing.  The order must designate the time and 
place of the hearing and direct the auditor to give notice by 
publication.  
    Subd. 5.  [HEARING ON COST PETITION.] (a) At the hearing 
the drainage authority shall consider the petition and hear all 
interested parties. 
    (b) The drainage authority may, by order, authorize the 
engineer to amend the detailed survey report, if the drainage 
authority determines that: 
    (1) the detailed survey report cost estimate was erroneous 
and should be corrected;  
    (2) the plans and specifications could be changed in a 
manner materially affecting the cost of the drainage system 
without interfering with the efficiency; and 
    (3) with the correction or modification a contract could be 
awarded within the 30 percent limitation and equal to or less 
than benefits. 
    (c) If the drainage authority determines that the amended 
changes affect the amount of benefits or damages to any property 
or that the benefits should be reexamined because of inflated 
land values or inflated construction costs, it shall refer the 
viewers' report to the viewers to reexamine the benefits and 
damages. 
    (d) The drainage authority may, by order, direct the 
engineer and viewers to amend their detailed survey report and 
viewers' report to consider the inflationary cost increases if 
the drainage authority determines that: 
     (1) bids were not received; or 
     (2) because of inflationary construction cost increases, 
construction under the awarded contract cannot be completed for 
30 percent or less over the detailed survey cost estimate or in 
excess of the benefits, less damages and other costs. 
    (e) The drainage authority may continue the hearing to give 
the engineer or viewers additional time to amend the reports. 
The jurisdiction of the drainage authority continues at the 
adjourned hearing.  
    (f) The drainage authority has full authority to consider 
the amended reports and make findings and orders.  A party may 
appeal to the district court under section 18, subdivision 1.  
    Sec. 58.  [106A.515] [DAMAGES, PAYMENT.] 
    The board of each county where the damaged property is 
located must order the awarded damages to be paid, less any 
assessment against the property, before the property is entered 
for construction of the drainage system.  If a county or a 
municipality that is awarded damages requests it, the assessment 
may not be deducted.  If there is an appeal, the damages may not 
be paid until the final determination.  If it is not clear who 
is entitled to the damages, the board may pay the damages to the 
clerk of the district court of the county.  The court shall 
direct the clerk, by order, to pay the parties entitled to the 
damages.  
    Sec. 59.  [106A.521] [SUPERVISION OF CONSTRUCTION.] 
    The drainage authority shall require the engineer to 
supervise and inspect the construction under contract.  The 
drainage authority shall cause the contracts under this chapter 
to be performed properly.  
    Sec. 60.  [106A.525] [CONSTRUCTION AND MAINTENANCE OF 
BRIDGES AND CULVERTS.] 
    Subdivision 1.  [HYDRAULIC CAPACITY.] A public or private 
bridge or culvert may not be constructed or maintained across or 
in a drainage system with less hydraulic capacity than specified 
in the detailed survey report, except with the written approval 
of the director of the division of waters.  If the detailed 
survey report does not specify the hydraulic capacity, a public 
or private bridge or culvert in or across a drainage system 
ditch may not be constructed without the director's approval of 
the hydraulic capacity.  
    Subd. 2.  [ROAD AUTHORITY RESPONSIBLE FOR CONSTRUCTION.] 
Bridges and culverts on public roads required by the 
construction or improvement of a drainage system must be 
constructed and maintained by the road authority responsible for 
keeping the road in repair, except as provided in this section. 
    Subd. 3.  [NOTICE; CHANGING COST.] The auditor shall notify 
the state and each railroad company, corporation, or political 
subdivision that they are to construct a required bridge or 
culvert on a road or right-of-way under its jurisdiction, within 
a reasonable time in the notice.  If the work is not done within 
the prescribed time, the drainage authority may order the bridge 
or culvert constructed as part of the drainage system 
construction.  The cost must be deducted from the damages 
awarded to the corporation or collected from it as an assessment 
for benefits.  If the detailed survey report or viewers' report 
shows that the construction of the bridge or culvert is 
necessary, the drainage authority may, by order, retain an 
amount to secure the construction of the bridge or culvert from 
amounts to be paid to a railroad, corporation, or political 
subdivision.  
    Subd. 4.  [CONSTRUCTION ON LINE BETWEEN TWO CITIES PAID 
EQUALLY.] The costs of constructing a bridge or culvert that is 
required by construction of a drainage system on a public road 
that is not a state trunk highway on the line between two 
statutory or home rule charter cities, whether in the same 
county or not, must be paid jointly, in equal shares, by the 
cities.  The cities shall pay jointly, in equal shares, for the 
cost of maintaining the bridge or culvert. 
    Subd. 5.  [CONSTRUCTION ON TOWN AND COUNTY LINES.] The cost 
of constructing and maintaining bridges and culverts on a town 
or county road across a drainage system ditch constructed along 
the boundary line between towns or counties, with excavated 
material deposited on the boundary line or within 33 feet of the 
line, must be paid equally by the town or county where the 
bridge or culvert is located and the other town or county 
adjoining the boundary.  
    Sec. 61.  [106A.531] [INSPECTION OF DRAINAGE CONSTRUCTION 
AND PARTIAL PAYMENTS.] 
    Subdivision 1.  [INSPECTION AND REPORT.] The engineer shall 
inspect and require the work as it is being completed to be done 
in accordance with the plans, specifications, and contract for 
construction.  Each month during the work, the engineer shall 
report to the drainage authority, in writing, showing the work 
completed since the previous report and all materials furnished 
under the contract.  
    Subd. 2.  [PRELIMINARY CERTIFICATE.] The engineer shall 
issue with the monthly report a preliminary certificate for work 
done and approved or materials delivered.  The certificate must 
contain the station numbers of the work covered by the 
certificate and the total value of all work done and the 
materials furnished according to the contract.  For each ditch 
section, the certificate must show the actual volume, in cubic 
yards, of the excavation completed.  For joint county drainage 
systems the certificate must also show the percentage of the 
total value to be paid by each county in the proportion fixed by 
the drainage authority order.  Each certificate must show that a 
loss will not occur as a result of a partial payment.  A 
duplicate of the certificate must be delivered to the auditor of 
each affected county.  
    Subd. 3.  [PARTIAL PAYMENT.] The affected counties must pay 
the contractor, based on the certificate, 90 percent of the 
total value of work done and approved and 90 percent of the 
total value of material furnished and delivered.  The materials 
may only be delivered as required in the course of construction 
and authorized by the engineer.  
    Sec. 62.  [106A.535] [PARTIAL PAYMENT OF RETAINED CONTRACT 
AMOUNTS.] 
    Subdivision 1.  [PETITION FOR PARTIAL PAYMENT OF RETAINED 
VALUE.] If a single contract exceeds $50,000, and the contract, 
exclusive of materials furnished and not installed, is one-half 
or more complete and the contractor is not in default, the 
contractor may file a verified petition with the auditor stating 
these facts and requesting that an order be made to pay 40 
percent of the retained value of work and material.  
    Subd. 2.  [NOTICE OF HEARING.] When the petition is filed, 
the auditor shall set a time and location for a hearing on the 
petition before the drainage authority.  At least five days 
before the date of hearing, the auditor shall give notice by 
mail of the date and location of hearing to the engineer, the 
attorney for the petitioners, the surety of the contractor's 
bond, and auditors of the affected counties.  
    Subd. 3.  [HEARING.] At the hearing the drainage authority 
shall hear all parties interested.  If the drainage authority 
determines that the facts in the petition are correct, the work 
has been performed in a satisfactory manner, and a portion of 
the retained percentage may be released without endangering the 
interests of affected counties, the drainage authority shall 
state the findings and may order not more than 40 percent of the 
retained value of work and material to be paid.  
    Sec. 63.  [106A.541] [EXTENSION OF TIME ON CONTRACTS.] 
    The auditors of affected counties may extend the time for 
the performance of a contract as provided in this section.  The 
contractor may apply, in writing, for an extension of the 
contract.  Notice of the application must be given to:  (1) the 
engineer and the attorney for the petitioners; and (2) for a 
joint county drainage system, to the auditors of the affected 
counties.  The auditors may grant an extension if sufficient 
reasons are shown.  The extension does not affect a claim for 
liquidated damages that may arise after the original time 
expires and before an extension or a claim that may arise after 
the time for the extension expires.  
    Sec. 64.  [106A.545] [REDUCTION OF CONTRACTOR'S BOND.] 
    Subdivision 1.  [APPLICATION TO DRAINAGE AUTHORITY.] The 
contractor, at the end of each season's work and before the 
contract is completed, may make a verified application to the 
drainage authority to reduce the contractor's bond and file the 
application with the auditor.  The application must state:  
    (1) the work certified as completed by the engineer; 
    (2) the certified work's value; 
    (3) the amount of money received by the contractor and the 
amount retained; 
    (4) the amount unpaid by the contractor for labor or 
material furnished on the contract; and 
    (5) a request for an order to reduce the amount of the 
contractor's bond.  
    The application must be filed with the auditor.  
    Subd. 2.  [NOTICE FOR HEARING.] When an application is 
filed, the auditor, by order, shall set the time and location 
for a hearing on the application.  Ten days before the hearing, 
notice of the hearing must be published in each affected county 
and notice by mail given to the engineer, the attorney for the 
petitioners, and the auditor of each affected county.  The 
contractor must pay the cost of the hearing notice by 
publication.  
    Subd. 3.  [HEARING; REDUCTION OF BOND.] The drainage 
authority may, by order, reduce the contractor's bond if it 
determines that the contractor is not in default and that a loss 
will not result from reducing the bond.  The bond may be reduced 
to an amount sufficient to protect the affected counties from 
loss and damage, but the reduction: 
    (1) may not be more than 35 percent of the amount already 
paid to the contractor; 
    (2) may not affect the remaining amount of the bond; 
    (3) does not affect liability incurred on the bond before 
the reduction; and 
    (4) does not affect a provision for a three-year guaranty 
of tile work.  
    Sec. 65.  [106A.551] [CONTRACTOR'S DEFAULT.] 
    Subdivision 1.  [NOTICE.] If a contractor defaults in the 
performance of the contract, the auditor shall mail a notice of 
the default to the contractor, the surety of the contractor's 
bond, the engineer, and the auditors of the affected counties.  
The notice must specify the default and state that if the 
default is not promptly removed and the contract completed, the 
unfinished portion of the contract will be awarded to another 
contractor. 
    Subd. 2.  [COMPLETION OF CONTRACT BY SURETY.] If the surety 
of the contractor's bond promptly proceeds with the completion 
of the contract, the affected auditors may grant an extension of 
time.  If the contract is completed by the surety, the balance 
due on the contract must be paid to the surety, less damages 
incurred by the affected counties from the default.  
    Subd. 3.  [AWARDING OF CONTRACT; RECOVERY ON BOND.] If the 
surety of the contractor's bond does not undertake the 
completion of the contract or does not complete the contract 
within the time specified or extended, auditors of the affected 
counties shall advertise for bids to complete the contract in 
the manner provided in the original awarding of contracts.  The 
drainage authority may recover the increased amounts paid to a 
subsequent contractor after reselling the work, and damages 
incurred by affected counties, from the first contractor's bond. 
    Sec. 66.  [106A.555] [ACCEPTANCE OF CONTRACT.] 
    Subdivision 1.  [ENGINEER'S REPORT AND NOTICE.] When a 
contract is completed, the engineer shall make a report to the 
drainage authority showing the contract price, the amount paid 
on certificates, the unpaid balance, and the work that is 
completed under the contract.  When the report is filed, the 
auditor shall set a time and location for a hearing on the 
report.  The auditor shall give notice of the hearing by 
publication or notice by mail at least ten days before the 
hearing to the owners of affected property.  The notice must 
state that the report is filed, the time and location for the 
hearing, and that a party objecting to the acceptance of the 
contract may appear and be heard. 
    Subd. 2.  [HEARING.] At the hearing the drainage authority 
may, by order, direct payment of the balance due if it 
determines that the contract has been completed in accordance 
with the plans and specifications.  If good cause is shown, the 
drainage authority may waive any part of the liquidated damages 
accruing under the contract.  When the order is filed, the 
auditor shall draw a warrant on the treasurer of the county for 
the balance due on the contract.  For a joint county drainage 
system the auditor shall make an order to the auditors of the 
affected counties to pay for their proportionate shares of the 
balance due on the contract.  After receiving the order, the 
auditor of each affected county shall draw a warrant on the 
treasurer of the county for the amount specified in the order. 

        FUNDING, COLLECTION, AND PAYMENT OF DRAINAGE SYSTEM COSTS
    Sec. 67.  [106A.601] [DRAINAGE LIEN STATEMENT.] 
    Subdivision 1.  [DETERMINATION OF PROPERTY LIABILITY.] When 
the contract for the construction of a drainage system is 
awarded, the auditor of an affected county shall make a 
statement showing the total cost of the drainage system with the 
estimated cost of all items required to complete the work.  The 
cost must be prorated to each tract of property affected in 
direct proportion to the benefits.  The cost, less any damages, 
is the amount of liability for each tract for the drainage 
system.  The property liability must be shown in the tabular 
statement under subdivision 2, opposite the property owner's 
name and description of each tract of property.  The amount of 
liability on a tract of property for establishment and 
construction of a drainage system may not exceed the benefits 
determined in the proceedings that accrue to the tract.  
    Subd. 2.  [DRAINAGE LIEN STATEMENT.] The auditor of each 
affected county shall make a lien statement in tabular form 
showing: 
    (1) the names of the property owners, corporate entities, 
or political subdivisions of the county benefited or damaged by 
the construction of the drainage system in the viewers' report 
as approved by the final order for establishment; 
    (2) the description of the property in the viewers' report, 
and the total number of acres in each tract according to the 
county tax lists; 
    (3) the number of acres benefited or damaged in each tract 
shown in the viewers' report; 
    (4) the amount of benefits and damages to each tract of 
property as stated in the viewers' report and confirmed by the 
final order that established the drainage system unless the 
order is appealed and a different amount is set; and 
    (5) the amount each tract of property will be liable for 
and must pay into the county treasury for the establishment and 
construction of the drainage system.  
    Subd. 3.  [SUPPLEMENTAL DRAINAGE LIEN STATEMENT.] If any 
items of the cost of the drainage system have been omitted from 
the original drainage lien statement, a supplemental drainage 
lien statement with the omitted items must be made and recorded 
in the same manner provided for a drainage lien statement.  The 
total amount of the original drainage lien and any supplemental 
drainage liens may not exceed the benefits.  
    Subd. 4.  [RECORDING DRAINAGE LIEN STATEMENT.] The drainage 
lien statement and supplemental drainage lien statements must be 
certified by the auditor and recorded by the county recorder of 
the county where the tract is located.  The county recorder's 
fees for recording must be paid on allowance by the board.  The 
drainage lien statement and any supplemental drainage lien 
statements, after recording, must be returned and preserved by 
the auditor. 
    Sec. 68.  [106A.605] [EFFECT OF FILED DRAINAGE LIEN.] 
    The amount recorded on the drainage lien statement and 
supplemental drainage lien statement that each tract of property 
will be liable for, and the interest allowed on that amount, is 
a drainage lien on the property.  The drainage lien is a first 
and paramount lien until fully paid, and has priority over all 
mortgages, charges, encumbrances, and other liens unless the 
board subordinates the drainage lien to easements of record. The 
recording of the drainage lien statement or a supplemental 
drainage lien statement is notice to all parties of the 
existence of the drainage lien.  
    Sec. 69.  [106A.611] [PAYMENT OF DRAINAGE LIENS AND 
INTEREST.] 
    Subdivision 1.  [PAYMENT OF DRAINAGE LIEN PRINCIPAL.] (a) 
Drainage liens against property benefited under this chapter are 
payable to the treasurer of the county in 20 or less equal 
annual installments.  The first installment of the principal is 
due on or before November 1 after the drainage lien statement is 
recorded, and each subsequent installment is due on or before 
November 1 of each year afterwards until the principal is paid. 
    (b) The drainage authority may, by order, direct the 
drainage lien to be paid by 1/15 of the principal on or before 
five years from November 1 after the lien statement is recorded, 
and 1/15 on or before November 1 of each year afterwards until 
the principal is paid. 
    (c) The drainage authority may order that the drainage lien 
must be paid by one or two installments, notwithstanding 
paragraphs (a) and (b), if the principal amount of a lien 
against a lot or tract of property or against a county or 
municipality is less than $50. 
    Subd. 2.  [INTEREST.] (a) Interest is an additional 
drainage lien on all property until paid.  The interest rate on 
the drainage lien principal must be set by the board, but may 
not exceed seven percent per year from the date the drainage 
lien statement is recorded.  
    (b) Before the tax lists for the year are given to the 
county treasurer, the auditor shall compute the interest on the 
unpaid balance of the drainage lien at the rate set by the 
board.  The amount of interest must be computed on the entire 
unpaid principal from the date the drainage lien was recorded to 
August 15 of the next calendar year, and afterwards from August 
15 to August 15 of each year. 
    (c) Interest is due and payable after November 1 of each 
year the drainage lien principal or interest is due and unpaid.  
    Subd. 3.  [COLLECTION OF PAYMENTS.] Interest and any 
installment due must be entered on the tax lists for the year. 
The installment and interest must be collected in the same 
manner as real estate taxes for that year by collecting one-half 
of the total of the installment and interest with and as a part 
of the real estate taxes on or before May 15 and one-half on or 
before October 15 of the next year.  
    Subd. 4.  [PREPAYMENT OF INTEREST.] Interest may be paid at 
any time, computed to the date of payment, except that after the 
interest is entered on the tax lists for the year, it is due as 
entered, without a reduction for prepayment.  
    Subd. 5.  [PAYMENT OF DRAINAGE LIENS WITH BONDS.] The board 
may direct the county treasurer to accept any outstanding bond 
that is a legal obligation of the county under this chapter 
issued on account of a drainage lien in payment of drainage 
liens under the provisions of this chapter.  The bonds must be 
accepted at their par value plus accrued interest.  
    Subd. 6.  [DRAINAGE LIEN RECORD.] The auditor shall keep a 
drainage lien record for each drainage system showing the amount 
of the drainage lien remaining unpaid against each tract of 
property. 
    Subd. 7.  [COLLECTION AND ENFORCEMENT OF DRAINAGE 
LIENS.] The provisions of law that exist relating to the 
collection of real estate taxes are adopted to enforce payment 
of drainage liens.  If there is a default, a penalty may not be 
added to an installment of principal and interest, but each 
defaulted payment, principal, and interest draws interest from 
the date of default until paid at seven percent per year. 
    Sec. 70.  [106A.615] [ENFORCEMENT OF ASSESSMENTS.] 
    Subdivision 1.  [MUNICIPALITIES.] Assessments filed for 
benefits to a municipality are a liability of the municipality 
and are due and payable with interest in installments on 
November 1 of each year as provided in section 69.  If the 
installments and interest are not paid on or before November 1, 
the amount due with interest added as provided in section 69 
must be extended by the county auditor against all property in 
the municipality that is liable to taxation.  A levy must be 
made and the amount due must be paid and collected in the same 
manner and time as other taxes.  
    Subd. 2.  [COUNTY OR STATE-AID ROAD.] If a public road 
benefited is a county or state-aid road, the assessment filed is 
against the county and must be paid out of the road and bridge 
fund of the county.  
    Subd. 3.  [STATE TRUNK HIGHWAY.] An assessment against the 
state for benefits to trunk highways is chargeable to and 
payable out of the trunk highway fund.  The commissioner of 
transportation shall pay assessments from the trunk highway fund 
after receipt of a certified copy of the assessment against the 
state for benefits to a trunk highway.  
    Subd. 4.  [ASSESSMENT FOR VACATED TOWN ROADS.] If a town is 
assessed for benefits to a town road in a drainage system 
proceeding under this chapter and the town road is later vacated 
by the town board under section 164.07, the town board may 
petition the drainage authority to cancel the assessment.  The 
drainage authority may cancel the assessment if it finds that 
the town road for which benefits are assessed has been vacated 
under section 164.07.  
    Subd. 5.  [STATE PROPERTY.] State property, including rural 
credit property, is assessable for benefits received.  The 
assessment must be paid by the state from funds appropriated and 
available for drainage assessments after the state officer 
having jurisdiction over the assessed property certifies the 
assessment to the commissioner of finance.  
    Subd. 6.  [ASSESSMENTS ON WILDLIFE LANDS TO BE PAID FROM 
WILDLIFE ACQUISITION FUND.] An assessment against state land 
acquired for wildlife habitat shall be paid from the wildlife 
acquisition fund as provided in section 97.484.  
    Subd. 7.  [RAILROAD AND UTILITY PROPERTY.] Property owned 
by a railroad or other utility corporation benefited by a 
drainage system is liable for the assessments of benefits on the 
property as other taxable property.  From the date the drainage 
lien is recorded, the amount of the assessment with interest is 
a lien against all property of the corporation within the 
county.  Upon default the assessment may be collected by civil 
action or the drainage lien may be foreclosed by action in the 
same manner as provided by law for the foreclosure of mortgage 
liens.  The county where the drainage lien is filed has the 
right of action against the corporation to enforce and collect 
the assessment.  
    Sec. 71.  [106A.621] [SATISFACTION OF LIENS.] 
    When a drainage lien with the accumulated interest is fully 
paid, the auditor shall issue a certificate of payment with the 
auditor's official seal and record the certificate with the 
county recorder.  The recorded certificate releases and 
discharges the drainage lien.  The auditor may collect 25 cents 
for each description in the certificate.  The auditor's fee and 
the fee of the county recorder must be paid from the account for 
the drainage system. 
    Sec. 72.  [106A.625] [SUBDIVISION BY PLATTING MUST HAVE 
LIENS APPORTIONED.] 
    A tract of property with a drainage lien that is subdivided 
by platting is not complete and the plat may not be recorded 
until the drainage liens against the tracts are apportioned and 
the apportionment filed with the county recorder of the county 
where the tract is located.  
    Sec. 73.  [106A.631] [APPORTIONMENT OF LIENS.] 
    Subdivision 1.  [PETITION.] A person who has an interest in 
property that has a drainage lien attached to it may petition 
the drainage authority to apportion the lien among specified 
portions of the tract if the payments of principal and interest 
on the property are not in default. 
    Subd. 2.  [NOTICE.] When the petition is filed, the 
drainage authority shall, by order, set a time and location for 
a hearing on the petition.  The drainage authority shall give 
notice of the hearing by personal service to the auditor, the 
occupants of the tract, and on all parties having an interest in 
the tract as shown by the records in the county recorder's 
office.  The service must be made at least ten days before the 
hearing.  If personal service cannot be made to all interested 
persons, notice may be given by publication.  The petitioner 
shall pay the costs for service or publication. 
    Subd. 3.  [HEARING.] The drainage authority shall hear all 
related evidence and, by order, apportion the lien.  A certified 
copy of the order must be recorded in the county recorder's 
office and filed with the auditor.  
    Sec. 74.  [106A.635] [DRAINAGE BOND ISSUES.] 
    Subdivision 1.  [AUTHORITY.] After the contract for the 
construction of a drainage system is awarded, the board of an 
affected county may issue the bonds of the county in an amount 
necessary to pay the cost of establishing and constructing the 
drainage system.  
    Subd. 2.  [SINGLE ISSUE FOR TWO OR MORE DRAINAGE 
SYSTEMS.] The board may include two or more drainage systems in 
a single drainage bond issue.  The total amount of the drainage 
bond issue may not exceed the total cost, including expenses, to 
be assessed to pay for the drainage systems.  The total cost to 
be assessed must be determined or estimated by the board when 
the drainage bonds are issued. 
    Subd. 3.  [SECURITY AND SOURCE OF PAYMENT.] The drainage 
bonds must be issued in accordance with chapter 475 and must 
pledge the full faith, credit, and resources of the county for 
the prompt payment of the principal and interest of the drainage 
bonds.  The drainage bonds are primarily payable from the funds 
of the drainage systems financed by the bonds or from the common 
drainage bond redemption fund of the county.  The common 
drainage bond redemption fund may be created by resolution of 
the county board as a debt redemption fund for the payment of 
drainage bonds issued under this chapter.  
    Subd. 4.  [PAYMENT PERIOD AND INTEREST ON DRAINAGE 
BONDS.] (a) The board shall determine, by resolution:  
    (1) the time of payment for the drainage bonds not 
exceeding 23 years from their date; 
    (2) the rates of interest for the drainage bonds, with the 
net average rate of interest over the term of the bonds not to 
exceed seven percent per year; and 
    (3) whether the drainage bonds are payable annually or 
semi-annually.  
    (b) The board shall determine the years and amounts of 
principal maturities that are necessary by the anticipated 
collections of the drainage systems assessments, without regard 
to any limitations on the maturities imposed by section 475.54. 
    Subd. 5.  [TEMPORARY DRAINAGE BONDS MATURING IN TWO YEARS 
OR LESS.] The board may issue and sell temporary drainage bonds 
under this subdivision maturing not more than two years after 
their date of issue, instead of bonds under subdivision 4.  The 
county shall issue and sell definitive drainage bonds before the 
maturity of bonds issued under this subdivision and use the 
proceeds to pay for the temporary drainage bonds and interest to 
the extent that the temporary bonds are not paid for by 
assessments collected or other available funds.  The holders of 
temporary drainage bonds and the taxpayers of the county have 
and may enforce by mandamus or other appropriate proceedings: 
    (1) all rights respecting the levy and collection of 
assessments sufficient to pay the cost of drainage proceedings 
and construction financed by the temporary drainage bonds that 
are granted by law to holders of other drainage bonds, except 
the right to require levies to be collected before the temporary 
drainage bonds mature; and 
    (2) the right to require the offering of definitive 
drainage bonds for sale, or to require the issuance of 
definitive drainage bonds in exchange for the temporary drainage 
bonds, on a par for par basis, bearing interest at the rate of 
seven percent per year if the definitive drainage bonds have not 
been sold and delivered before the maturity of the temporary 
drainage bonds.  
    Subd. 6.  [DEFINITIVE DRAINAGE BONDS.] The definitive 
drainage bonds issued in exchange for an issue of temporary 
drainage bonds must be numbered and mature serially at times and 
in amounts to allow the principal and interest to be paid when 
due by the collection of assessments levied for the drainage 
systems financed by the temporary bond issue.  The definitive 
bonds are subject to redemption and prepayment on any interest 
payment date by the county notifying each definitive bondholder 
who has registered their name and address with the county 
treasurer.  The bondholders must be notified by mail 30 days 
before the interest payment date.  The definitive bonds must be 
delivered in order of their serial numbers, lowest numbers 
first, to the holders of the temporary drainage bonds in order 
of the serial numbers of the bonds held by them.  
    Subd. 7.  [SALE OF DEFINITIVE DRAINAGE BONDS.] The board 
must sell and negotiate the definitive drainage bonds for at 
least their par value.  The definitive bonds must be sold at 
public sale after advertised notice under chapter 475.  
    Subd. 8.  [COUNTY INVESTMENT, PURCHASE, AND SELLING OF 
TEMPORARY DRAINAGE BONDS.] (a) Funds of the issuing county may 
be invested in temporary drainage bonds under sections 471.56 
and 475.66, except that the temporary drainage bonds may be:  
    (1) purchased by the county when the temporary drainage 
bonds are initially issued; 
    (2) purchased only out of funds that the board determines 
will not be required for other purposes before the temporary 
drainage bonds mature; and 
    (3) resold before the temporary drainage bonds mature only 
if there is an unforeseen emergency.  
    (b) If a temporary drainage bond purchase is made from 
money held in a sinking fund for other bonds of the county, the 
holders of the other bonds may enforce the county's obligation 
to sell definitive bonds at or before the maturity of the 
temporary drainage bonds, or exchange the other bonds, in the 
same manner as holders of the temporary drainage bonds.  
    Subd. 9.  [DELIVERY OF BONDS AS DRAINAGE WORK PROCEEDS.] 
The board may provide in the contract for the sale of drainage 
bonds, temporary drainage bonds, and definitive drainage bonds, 
that the bonds are delivered as the drainage work proceeds and 
the money is needed, and that interest is paid only from the 
date of delivery.  
    Subd. 10.  [BOND RECITAL.] Each drainage bond, temporary 
drainage bond, and definitive drainage bond must contain a 
recital that it is issued by authority of and in strict 
accordance with this chapter.  The recital is conclusive in 
favor of the holders of the bonds as against the county, that 
the drainage system has been properly established, that property 
within the county is subject to assessment for benefits in an 
amount not less than the amount of the bonds, and that all 
proceedings and construction relative to the drainage systems 
financed by the bonds have been or will be made according to law.
    Subd. 11.  [HOW BONDS MAY BE PAID.] The board may pay 
drainage bonds, temporary drainage bonds, and definitive 
drainage bonds issued under this chapter from any available 
funds in the county treasury if the money in the common drainage 
bond redemption fund or in the drainage fund for the issued 
bonds is insufficient.  The county treasury funds that money is 
transferred from must be reimbursed, with interest at a rate of 
seven percent per year for the time the money is actually 
needed, from assessments on the drainage systems or from the 
sale of drainage funding bonds.  
    Sec. 75.  [106A.641] [DRAINAGE FUNDING BONDS.] 
    Subdivision 1.  [AUTHORITY.] The board may issue drainage 
funding bonds under the conditions and terms in this section.  
    Subd. 2.  [CONDITIONS FOR ISSUANCE.] Drainage funding bonds 
may be issued if: 
    (1) money in a drainage system account or in the common 
drainage bond redemption fund will not be sufficient to pay the 
principal and interest of the drainage bonds payable from the 
funds and becoming due within one year afterwards; or 
    (2) the county has paid any of the principal or interest on 
any of its drainage bonds from county funds other than the fund 
from which the bonds are payable, or by the issuance of county 
warrants issued and outstanding.  
    Subd. 3.  [AUDITOR'S CERTIFICATE.] (a) Before drainage 
funding bonds are authorized or issued under this section, the 
county auditor shall first sign and seal a certificate and 
present the certificate to the board.  The board shall enter the 
certificate in its records.  The certificate must state in 
detail, for each of the several drainage systems: 
    (1) the amount that will be required to pay an existing 
shortage under subdivision 2; and 
    (2) the probable amount that will be required to pay the 
principal and interest of the county's outstanding drainage 
bonds that become due within one year afterwards. 
    (b) The certificate is conclusive evidence that the county 
has authority to issue bonds under the provisions of this 
section in an amount that does not exceed the aggregate amount 
specified in the auditor's certificate.  
    Subd. 4.  [ISSUANCE OF BONDS.] When the auditor's 
certificate is entered in the board's records, the board may 
issue and sell, from time to time, county drainage funding bonds 
for the same drainage purposes as the funds listed in the 
certificate were used.  The bonds must be designated drainage 
funding bonds.  The board shall authorize issuance of the 
drainage funding bonds by resolution.  The drainage funding 
bonds must be sold, issued, bear interest, and obligate the 
county as provided in section 74 for drainage bonds.  The 
drainage funding bonds must mature serially in annual 
installments that are payable within 15 years.  
    Subd. 5.  [ APPLICATION OF BOND PROCEEDS.] The proceeds of 
drainage funding bonds that are paid into the treasury must be 
applied to the purpose for which they are issued.  
    Subd. 6.  [COUNTY BOND OBLIGATION.] Drainage funding bonds 
are general obligations of the county but are not included in 
determining the county's net indebtedness under any law.  
    Sec. 76.  [106A.645] [ALLOWANCE AND PAYMENT OF FEES AND 
EXPENSES.] 
    Subdivision 1.  [FEES AND EXPENSES.] The fees and expenses 
in this section are allowed and must be paid for services 
provided under this chapter.  
    Subd. 2.  [ENGINEER, ENGINEER'S ASSISTANTS, AND OTHER 
EMPLOYEES.] The compensation of the engineer, the engineer's 
assistants, and other employees is on a per diem basis and must 
be set by order of the drainage authority.  The order setting 
compensation must provide for payment of the actual and 
necessary expenses of the engineer, the engineer's assistants, 
and other employees, including the cost of the engineer's bond.  
    Subd. 3.  [VIEWERS.] Each viewer may be paid for every 
necessary day the viewer is engaged on a per diem basis and for 
the viewer's actual and necessary expenses.  The compensation 
must be set by the drainage authority.  
    Subd. 4.  [BOARD MEMBERS.] Each member of the board may be 
paid a per diem under section 375.055, subdivision 1, and actual 
and necessary expenses incurred while actually employed in 
drainage proceedings or construction, or in the inspection of 
any drainage system if the board member is appointed to a 
committee for that purpose. 
    Subd. 5.  [AUDITOR, ATTORNEY FOR THE PETITIONERS, AND OTHER 
COUNTY OFFICIALS.] The county auditor and the attorney for the 
petitioners must each be paid reasonable compensation for 
services actually provided as determined by the drainage 
authority.  The fees and compensation of all county officials in 
drainage proceedings and construction are in addition to other 
fees and compensation allowed by law.  
    Subd. 6.  [PETITIONERS' BOND.] The cost of the petitioners' 
bond must be allowed and paid.  
    Subd. 7.  [PAYMENT.] The fees and expenses provided for in 
this chapter for a drainage system in one county must be 
audited, allowed, and paid by order of the board or for a 
drainage system in more than one county must be audited, 
allowed, and paid by order of the drainage authority after ten 
days' written notice to each affected county.  The notice must 
be given by the auditor to the auditors of affected counties. 
The notice must state the time and location of the hearing and 
that all bills on file with the auditor at the date of the 
notice must be presented for hearing and allowance.  
    Sec. 77.  [106A.651] [DRAINAGE SYSTEM ACCOUNT.] 
    Subdivision 1.  [FUNDS FOR DRAINAGE SYSTEM COSTS.] The 
board shall provide funds to pay the costs of drainage systems. 
    Subd. 2.  [DRAINAGE SYSTEM ACCOUNT.] The auditor shall keep 
a separate account for each drainage system.  The account must 
be credited with all money from the sale of bonds and bond 
premiums and all money received from interest, liens, 
assessments, and other sources for the drainage system.  The 
account must be debited with every item of expense made for the 
drainage system.  
    Subd. 3.  [INVESTMENT OF SURPLUS FUNDS.] If a drainage 
system account or the common drainage bond redemption fund has a 
surplus over the amount required for payment of obligations 
presently due and payable from the account or fund, the board 
may invest any part of the surplus in bonds or certificates of 
indebtedness of the United States or of the state.  
    Subd. 4.  [DORMANT DRAINAGE SYSTEM ACCOUNT TRANSFERRED TO 
GENERAL REVENUE FUND.] If a surplus has existed in a drainage 
system account for a period of 20 years or more and there have 
not been any expenditures from the account during the period, 
the board, by a unanimous resolution, may transfer the surplus 
remaining in the drainage system account to the county general 
revenue fund of the county.  
    Sec. 78.  [106A.655] [PAYMENT OF DRAINAGE SYSTEM COSTS.] 
    Subdivision 1.  [PAYMENT MADE FROM DRAINAGE SYSTEM 
ACCOUNT.] The costs for a drainage system proceeding and 
construction must be paid from the drainage system account by 
drawing on the account. 
    Subd. 2.  [INSUFFICIENT FUNDS; TRANSFER FROM OTHER 
ACCOUNTS.] If money is not available in the drainage system 
account on which the warrant is drawn, the board may, by 
unanimous resolution, transfer funds from any other drainage 
system account under its jurisdiction or from the county general 
revenue fund to the drainage system account.  If the board 
transfers money from another account or fund to a drainage 
system account, the money plus interest must be reimbursed from 
the proceeds of the drainage system that received the transfer. 
The interest must be computed for the time the money is actually 
needed at the same rate per year charged on drainage liens and 
assessments.  
    Subd. 3.  [WARRANT ON ACCOUNT WITH INSUFFICIENT FUNDS; 
INTEREST ON WARRANT.] If a warrant is issued by the auditor 
under this chapter and there is not enough money in the drainage 
system account to pay the warrant when it is presented, the 
county treasurer shall endorse the warrant "Not paid for want of 
funds," with the date and sign the endorsement.  Interest on the 
warrant must be at the rate of six percent per year and paid 
annually from available funds until the warrant is called in and 
paid by the treasurer.  Interest may not be paid on a warrant 
after money is available to the treasurer to pay the warrants. 
The warrant is a general obligation of the county issuing the 
warrant.  
    Sec. 79.  [106A.661] [ESTABLISHMENT OF DRAINAGE SYSTEM 
ACCOUNTS BY STATE AUDITOR.] 
    Subdivision 1.  [STATE AUDITOR MUST ESTABLISH ACCOUNTS UPON 
APPLICATION.] A county may apply, by resolution, to the state 
auditor to examine the accounts and records of any or all 
drainage systems in the county.  The auditor must establish a 
system of accounts for each drainage system applied for in the 
county.  
    Subd. 2.  [PAYMENT OF EXPENSES.] The compensation and 
travel and hotel expenses of the examining accountant must be 
audited, allowed, and paid into the state treasury by the board. 
The money must be credited to the revolving fund of the state 
auditor.  The county auditor shall apportion the expenses among 
the drainage systems in the county.  

                  PROCEDURE TO REPAIR DRAINAGE SYSTEMS 
    Sec. 80.  [106A.701] [REPAIRS.] 
    Subdivision 1.  [DEFINITION.] The term "repair," as used in 
this section, means to restore all or a part of a drainage 
system as nearly as practicable to the same condition as when 
originally constructed or subsequently improved, including 
resloping of ditches and leveling of waste banks if necessary to 
prevent further deterioration, and routine operations that may 
be required to remove obstructions and maintain the efficiency 
of the drainage system.  
    Subd. 2.  [REPAIR OF TOWN DITCHES.] The town board has the 
power of a drainage authority to repair a town drainage system 
located within the town.  
    Subd. 3.  [BRIDGES AND CULVERTS.] (a) Highway bridges and 
culverts constructed on a drainage system established on or 
after March 25, 1947, must be maintained by the road authority 
charged with the duty of maintenance under section 60. 
    (b) Private bridges or culverts constructed as a part of a 
drainage system established by proceedings that began on or 
after March 25, 1947, must be maintained by the drainage 
authority as part of the drainage system.  Private bridges or 
culverts constructed as a part of a drainage system established 
by proceedings that began before March 25, 1947, may be 
maintained, repaired, or rebuilt and any portion paid for as 
part of the drainage system by the drainage authority.  
    (c) For a repair of a drainage system that has had 
redetermination of benefits under section 51, the drainage 
authority may repair or rebuild existing bridges or culverts on 
town and home rule charter and statutory city roads constructed 
as part of the drainage system and any portion of the cost may 
be paid by the drainage system. 
    Sec. 81.  [106A.705] [REPAIR PROCEDURE.] 
    Subdivision 1.  [INSPECTION.] After the construction of a 
drainage system has been completed, the drainage authority shall 
maintain the drainage system that is located in its jurisdiction 
and provide the repairs necessary to make the drainage system 
efficient.  The drainage authority shall have the drainage 
system inspected annually by an inspection committee of the 
drainage authority or a drainage inspector appointed by the 
drainage authority.  
    Subd. 2.  [DRAINAGE INSPECTOR REPORT.] For each drainage 
system that the board designates and requires the drainage 
inspector to examine, the drainage inspector shall make a 
drainage inspection report in writing to the board after 
examining a drainage system, designating portions that need 
repair and the location and nature of the repair.  The board 
shall consider the drainage inspection report at its next 
meeting and may repair all or any part of the drainage system as 
provided under this chapter.  
    Subd. 3.  [INSPECTION REPORT TO DRAINAGE AUTHORITY.] If the 
inspection committee or drainage inspector reports, in writing, 
to the drainage authority that repairs are necessary on a 
drainage system and the report is approved by the drainage 
authority, the repairs must be made under this section.  
    Subd. 4.  [REPAIRS LESS THAN $20,000.] If the drainage 
authority finds that the estimated cost of repairs and 
maintenance of one drainage system for one year will be less 
than $20,000, it may have the repair work done by hired labor 
and equipment without advertising for bids or entering into a 
contract for the repair work.  
    Subd. 5.  [ANNUAL REPAIR ASSESSMENT LEVY LIMITS.] The 
drainage authority may give notice of and hold a hearing on the 
repair levy before ordering the levy of an assessment for 
repairs.  In one calendar year the drainage authority may not 
levy an assessment for repairs or maintenance on one drainage 
system for more than 20 percent of the benefits of the drainage 
system or $20,000, whichever is greater, except for a repair 
made after a disaster under subdivision 6 or under the petition 
procedure.  
    Subd. 6.  [REPAIR AND CONSTRUCTION AFTER DISASTER.] The 
drainage authority may repair and reconstruct the drainage 
system without advertising for bids and without regard to the 
$20,000 limitation if: 
    (1) a drainage system is destroyed or impaired by floods, 
natural disaster, or unforeseen circumstances; 
    (2) the area where the drainage system is located has been 
declared a disaster area by the President of the United States 
and federal funds are available for repair or reconstruction; 
and 
    (3) the public interests would be damaged by repair or 
reconstruction being delayed.  
    Sec. 82.  [106A.711] [COST APPORTIONMENT FOR JOINT COUNTY 
DRAINAGE SYSTEMS.] 
    Subdivision 1.  [REPAIR COST STATEMENT.] For a joint county 
drainage system the auditor of a county that has made repairs 
may present a repair cost statement at the end of each year, or 
other convenient period after completion, to each affected 
county.  The repair cost statement must show the nature and cost 
of the repairs to the drainage systems and must be based on the 
original apportionment of cost following the establishment of 
the drainage system.  If a board approves the repair costs, the 
statement must be paid to the county submitting the statement. 
    Subd. 2.  [REPAIR COST STATEMENT NOT PAID.] (a) If a county 
does not pay the repair cost statement, the board of an affected 
county may petition the joint county drainage authority.  The 
petition must: 
    (1) show the nature and necessity of the repairs made to 
the drainage system in the county during the period; 
    (2) show the cost of the repairs; and 
    (3) request the drainage authority to apportion the costs, 
by order, among the affected counties.  
    (b) When the petition is filed, the drainage authority 
shall, by order, set a time and location for a hearing to 
apportion the costs, and direct the auditor to give notice of 
the hearing to each affected county by publication and notice by 
mail to its auditor.  At or before the hearing, the auditor of 
each affected county, except the petitioner, shall file with the 
drainage authority a statement showing: 
    (1) all repairs made to the drainage system in that county, 
not previously reimbursed; 
    (2) the nature and necessity of the repairs; and 
    (3) the cost of the repairs. 
    (c) The drainage authority has jurisdiction over the 
affected counties and shall hear all interested parties.  The 
drainage authority shall determine which repairs were necessary 
and reasonable and proper costs.  For the allowed repairs the 
drainage authority shall balance the accounts among the affected 
counties, by charging each county with its proportionate share 
of the cost of all repairs made and crediting each county with 
the amount paid for the repairs.  The drainage authority shall 
order a just reimbursement among the affected counties.  A 
certified copy of the order must be filed by the auditor with 
the auditors of affected counties, and the boards shall make the 
required reimbursement. 
    Sec. 83.  [106A.715] [PROCEDURE FOR REPAIR BY PETITION.] 
    Subdivision 1.  [REPAIR PETITION.] An individual or an 
entity interested in or affected by a drainage system may file a 
petition to repair the drainage system.  The petition must state 
that the drainage system needs repair.  The auditor shall 
present the petition to the board at its next meeting or, for a 
joint county drainage system, to the drainage authority within 
ten days after the petition is filed.  
    Subd. 2.  [ENGINEER AND REPAIR REPORT.] If the drainage 
authority determines that the drainage system needs repair, the 
drainage authority shall appoint an engineer to examine the 
drainage system and make a repair report.  The report must show 
the necessary repairs, the estimated cost of the repairs, and 
all details, plans, and specifications necessary to prepare and 
award a contract for the repairs.  The drainage authority may 
give notice and order a hearing on the petition before 
appointing the engineer.  
    Subd. 3.  [NOTICE OF HEARING.] When the repair report is 
filed, the auditor shall promptly notify the drainage authority. 
The drainage authority in consultation with the auditor shall 
set a time, by order, not more than 30 days after the date of 
the order for a hearing on the repair report.  At least ten days 
before the hearing, the auditor shall give notice by mail of the 
time and location of the hearing to the petitioners, owners of 
property, and political subdivisions likely to be affected by 
the repair in the repair report.  
    Subd. 4.  [HEARING ON REPAIR REPORT.] (a) The drainage 
authority shall make findings and order the repair to be made if:
    (1) the drainage authority determines from the repair 
report and the evidence presented that the repairs recommended 
are necessary for the best interests of the affected property 
owners; or 
    (2) the repair petition is signed by the owners of at least 
26 percent of the property area affected by and assessed for the 
original construction of the drainage system, and the drainage 
authority determines that the drainage system is in need of 
repair so that it no longer serves its original purpose and the 
cost of the repair will not exceed the total benefits determined 
in the original drainage system proceeding. 
    (b) The order must direct the auditor and the chairman of 
the board or, for a joint county drainage system, the auditors 
of the affected counties to proceed and prepare and award a 
contract for the repair of the drainage system.  The contract 
must be for the repair in the repair report and as determined 
necessary by the drainage authority, and be prepared in the 
manner provided in this chapter for the original drainage system 
construction.  
    Subd. 5.  [APPORTIONMENT OF REPAIR COST FOR JOINT COUNTY 
DRAINAGE SYSTEM.] For the repair of a joint county drainage 
system, the drainage authority shall, by order, apportion the 
repair cost among affected counties in the same manner required 
in the original construction of the drainage system.  
    Subd. 6.  [REPAIR BY RESLOPING DITCHES, LEVELING WASTE 
BANKS, AND REMOVING TREES.] (a) For a drainage system that is to 
be repaired by resloping ditches, leveling waste banks, or 
removing trees, before ordering the repair, the drainage 
authority must appoint viewers to assess and report on damages 
and benefits if it determines: 
    (1) that the resloping, leveling, and tree removal will 
require the taking of any property not contemplated and included 
in the original proceeding for the establishment of the drainage 
system; and 
    (2) that any waste bank leveling will directly benefit 
property where the bank leveling is specified.  
    (b) The viewers shall assess and report damages and 
benefits as provided by sections 44 and 45 and the drainage 
authority shall hear and determine the damages and benefits as 
provided in sections 46, 48, and 49.  Damages must be paid as 
provided by section 44 as a part of the cost of the repair, and 
benefits must be added to the benefits previously determined as 
the basis for the pro rata assessment for the repair of the 
drainage system for the repair proceeding only.  
    Sec. 84.  [106A.721] [REPLACEMENT AND HYDRAULIC CAPACITY OF 
BRIDGES AND CULVERTS.] 
    Subdivision 1.  [REPORT ON HYDRAULIC CAPACITY.] If the 
engineer determines in a drainage system repair proceeding that 
because of added property under section 88 or otherwise, a 
bridge constructed or replaced or culvert installed or replaced 
as a part of a drainage system provides inadequate hydraulic 
capacity for the efficient operation of the drainage system to 
serve its original purpose, the engineer shall make a hydraulic 
capacity report to the drainage authority.  The hydraulic 
capacity report must include plans and specifications for the 
recommended replacement bridges and culverts, the necessary 
details to make and award a contract, and the estimated cost.  
    Subd. 2.  [NOTICE.] When the hydraulic capacity report is 
filed, the auditor shall promptly notify the drainage authority. 
The drainage authority in consultation with the auditor shall, 
by order, set a time not more than 30 days after the date of the 
order, for a hearing on the report.  At least ten days before 
the hearing, the auditor shall give notice by mail of the time 
and location of the hearing to the petitioners, owners of 
property, and political subdivisions likely to be affected by 
the repair in the repair report.  The notice may be given in 
conjunction with and as a part of the repair report notice, but 
the notice must specifically state that increasing the hydraulic 
capacity will be considered by the drainage authority at the 
hearing. 
    Subd. 3.  [REPORT HEARING.] At the hearing on the hydraulic 
capacity report, the drainage authority shall hear all 
interested parties.  If the drainage authority finds that 
existing bridges and culverts provide insufficient hydraulic 
capacity for the efficient operation of the drainage system as 
originally constructed or subsequently improved, the drainage 
authority shall make findings accordingly, and may order that 
the hydraulic capacity be increased by constructing bridges or 
installing culverts of a sufficient capacity.  The drainage 
authority shall determine and include in the order the type and 
plans for the replacement bridges or culverts.  The order must 
direct the state, political subdivision, railroad company, or 
other entity to construct bridges or culverts required by the 
order for its road or right-of-way within a reasonable time 
stated in the order.  The auditor shall notify the state, 
political subdivision, railroad company, or other entity to 
construct the bridges and culverts in accordance with the order. 
    Subd. 4.  [CONSTRUCTION NOT COMPLETED WITHIN SPECIFIED 
TIME.] If the work is not done within the time specified, the 
drainage authority may order the bridges and culverts built and 
the cost collected as an assessment for benefits.  
    Subd. 5.  [REQUEST FOR CULVERT OR BRIDGE TO BE INSTALLED AS 
PART OF REPAIR.] If a political subdivision, railroad company, 
or other entity, at the hearing or when notified to construct a 
bridge or install a culvert, requests that the bridge or culvert 
be installed as part of the repair of the drainage system, the 
drainage authority may, by order, direct the cost of the 
construction and installation assessed and collected from the 
political subdivision, railroad company, or other entity in the 
manner provided by section 86.  
    Sec. 85.  [106A.725] [COST OF REPAIR.] 
    All fees and costs incurred for proceedings relating to the 
repair of a drainage system, including inspections, engineering, 
viewing, and publications, are costs of the repair and must be 
assessed against the property and entities benefited.  
    Sec. 86.  [106A.731] [ASSESSMENT; BONDS.] 
    Subdivision 1.  [APPORTIONMENT OF ASSESSMENTS.] If there is 
not enough money in the drainage system account to make a 
repair, the board shall apportion and assess the costs of the 
repairs pro rata on all property and entities that have been 
assessed benefits for the drainage system. 
    Subd. 2.  [NUMBER OF INSTALLMENTS.] The assessments may be 
paid in annual installments specified in the assessment order. 
If the assessments are not more than 50 percent of the original 
cost of the drainage system, the installments may not exceed 
ten.  If the assessments are greater than 50 percent of the 
original cost of the drainage system, the board may order the 
assessments to be paid in 15 or less installments.  
    Subd. 3.  [INTEREST ON ASSESSMENTS.] If the order provides 
for payment in installments, interest on unpaid assessments from 
the date of the order for assessments must be set by the board 
in the order.  The interest rate may not exceed seven percent 
per year and must be collected with each installment.  
    Subd. 4.  [COLLECTION OF ASSESSMENTS.] If the assessment is 
not payable in installments, a lien does not need to be filed, 
and the assessment, plus interest from the date of the order to 
August 15 of the next calendar year, must be entered on the tax 
lists for the year.  The assessment and interest are due and 
payable with and as a part of the real estate taxes for the 
year.  If an assessment is levied and payable in installments, 
the auditor shall file for the record in the county recorder's 
office an additional tabular statement in substance as provided 
in section 67, and all the provisions of sections 68, 69, and 70 
relating to collection and payment must apply to the 
assessment.  Upon the filing of the tabular statement, the 
installment and interest are due and payable and must be entered 
on the tax lists and collected in the same manner as the 
original lien. 
    Subd. 5.  [CONDITIONS TO SELL BONDS FOR REPAIR.] If a 
contract for drainage system repair has been entered into under 
this chapter or the repair has been ordered to be constructed by 
hired labor and equipment, and the board has ordered the 
assessments to be paid in installments, the board may issue and 
sell bonds, as provided by section 74.  
    Subd. 6.  [REPAIR OF STATE DRAINAGE SYSTEM WHEN NO BENEFITS 
WERE ASSESSED.] For the repair of a drainage system established 
by the state where benefits were not assessed to the property, 
the drainage authority shall proceed to appoint viewers to 
determine the benefits resulting from the repair and collect 
assessments for the repair as provided in this chapter.  
    Sec. 87.  [106A.735] [DRAINAGE SYSTEM REPAIR FUND.] 
    Subdivision 1.  [AUTHORITY AND LIMITS OF FUND.] To create a 
repair fund for a drainage system to be used only for repairs, 
the drainage authority may apportion and assess an amount 
against all property and entities assessed for benefits in 
proceedings for establishment of the drainage system, including 
property not originally assessed and subsequently found to be 
benefited according to law.  The fund may not exceed 20 percent 
of the assessed benefits of the drainage system or $40,000, 
whichever is greater.  If the account in a fund for a drainage 
system exceeds the larger of 20 percent of the assessed benefits 
of the drainage system or $40,000, assessments for the fund may 
not be made until the account is less than the larger of 20 
percent of the assessed benefits or $40,000.  Assessments must 
be made pro rata according to the determined benefits.  
Assessments may be made payable, by order, in equal annual 
installments.  The auditor shall file a tabular statement as 
provided in section 86, subdivision 4, with the county recorder. 
Assessments must be collected as provided in section 86.  
    Subd. 2.  [TRANSFER OF DRAINAGE SYSTEM.] If a drainage 
system within the county has been taken over by a watershed 
district under section 112.65, subdivision 1, or if 
responsibility for repair and maintenance of the drainage system 
has been assumed by any other governing body, the board may 
transfer any remaining surplus of the drainage system repair 
fund to the repair fund of the watershed district or to the 
appropriate fund of any existing governing body having 
responsibility for repair and maintenance of the drainage system.
    Sec. 88.  [106A.741] [INCLUSION OF PROPERTY THAT HAS NOT 
BEEN ASSESSED BENEFITS.] 
    Subdivision 1.  [CONSIDERATION BY ENGINEER.] In a 
proceeding to repair a drainage system, if the engineer 
determines or is made aware that property that was not assessed 
for benefits for construction of the drainage system has been 
drained into the drainage system or has otherwise benefited from 
the drainage system, the engineer shall submit a map with the 
repair report.  The map must show all public and private main 
ditches and drains that drain into the drainage system, all 
property affected or otherwise benefited by the drainage system, 
and the names of the property owners to the extent practicable. 
The property owners must be notified of the hearing on the 
repair report at least ten days before the hearing.  The auditor 
must give notice of the time and location of the hearing by mail.
    Subd. 2.  [APPOINTMENT OF VIEWERS.] At the hearing on the 
repair report, if the drainage authority determines that 
property not assessed for benefits for the construction of the 
drainage system has been benefited by the drainage system, the 
drainage authority shall appoint viewers as provided by section 
42 before the repair contract is awarded.  The viewers shall 
determine the benefits to all property and entities benefited by 
the original construction of the drainage system and not 
assessed for benefits arising from its construction.  The 
viewers shall make a viewers' repair report to the drainage 
authority as provided by section 44.  When the viewers' repair 
report is filed, the auditor shall give notice of a hearing as 
required by section 46 and the drainage authority has 
jurisdiction of each tract of property described in the viewers' 
report as provided in section 47.  
    Subd. 3.  [VIEWERS' REPAIR REPORT HEARING.] At the hearing 
on the viewers' repair report, the drainage authority shall hear 
all interested parties and determine the benefits to property 
and entities benefited by the original construction of the 
drainage system and not assessed for benefits.  
    Subd. 4.  [APPEAL OF ASSESSMENT ORDER.] A person may appeal 
from the order determining the assessments as provided by 
section 18.  
    Subd. 5.  [PROPERTY BENEFITED IN HEARING ORDER INCLUDED IN 
FUTURE PROCEEDINGS.] For the repair of the drainage system under 
this section that included the property that was not assessed 
and in all future proceedings relating to repairing, cleaning, 
improving, or altering the drainage system, the property 
benefited in the viewers' report hearing is part of the property 
benefited by the drainage system and must be assessed in the 
same manner provided for the assessment of the property 
originally assessed for and included in the drainage system. 
    Sec. 89.  [106A.745] [COST OF REPAIR EXCEEDING BENEFITS.] 
    If the cost of the repair of a drainage system exceeds the 
benefits determined in the original proceedings for the 
establishment of the drainage system, the requirements of 
section 24 for improvements of drainage systems apply if:  
    (1) the repair will result in the drainage of 100 or more 
acres of public waters in Anoka county;  
    (2) the public waters have existed for 15 or more years;  
    (3) the drainage system has not been substantially repaired 
for more than 25 years; and 
    (4) the physical repair was not started before July 1, 1980.

               CONSOLIDATION, DIVISION, AND ABANDONMENT OF

                            DRAINAGE SYSTEMS
    Sec. 90.  [106A.801] [CONSOLIDATION OR DIVISION OF DRAINAGE 
SYSTEMS.] 
    Subdivision 1.  [AUTHORITY TO CONSOLIDATE OR DIVIDE.] After 
the benefited area of a drainage system has been redetermined by 
the drainage authority under section 51 or in connection with 
drainage proceedings, the drainage authority may divide one 
system into two or more separate systems, consolidate two or 
more systems, transfer part of one system to another, or attach 
a part of a system that has been abandoned as provided in 
section 91 or 92 to another system to provide for the efficient 
administration of the system consistent with the redetermination 
of the benefited area.  
    Subd. 2.  [INITIATION OF ACTION.] The consolidation or 
division may be initiated by the drainage authority on its own 
motion or by any party interested in or affected by the drainage 
system filing a petition.  If the system is under the 
jurisdiction of a drainage authority, the petition must be filed 
with the auditor.  If the system is under the jurisdiction of a 
watershed board, the petition must be filed with the secretary 
of the board.  
    Subd. 3.  [HEARING.] (a) When a drainage authority or 
watershed board directs by resolution or a petition is filed, 
the drainage authority in consultation with the auditor or 
secretary shall set a time and location for a hearing.  The 
auditor or secretary shall give notice by publication to all 
persons interested in the drainage system. The drainage 
authority may consolidate or divide drainage systems, by order, 
if it determines that the division of one system into two or 
more separate systems, the consolidation of two or more systems, 
the transfer of part of one system to another, or the attachment 
of a previously abandoned part of a system to another system: 
    (1) is consistent with the redetermination of the benefited 
areas of the drainage system;  
    (2) would provide for the efficient administration of the 
drainage system; and 
    (3) would be fair and equitable. 
    (b) An order to consolidate or divide drainage systems does 
not release property from a drainage lien or assessment filed 
for costs incurred on account of a drainage system before the 
date of the order.  
    Sec. 91.  [106A.805] [REMOVAL OF PROPERTY FROM AND PARTIAL 
ABANDONMENT OF A DRAINAGE SYSTEM.] 
    Subdivision 1.  [PETITION.] After the construction of a 
drainage system, the owner of benefited property may petition 
the drainage authority to remove property from the drainage 
system or abandon any part of the drainage system that is not of 
public benefit and utility and does not serve a substantial 
useful purpose to property remaining in the system if: 
    (1) waters are diverted from property assessed for benefits 
so that the drainage from the property does not use or affect 
the drainage system; or 
    (2) a dam authorized by law is constructed in the drainage 
system so that the property above the dam cannot use or receive 
benefits from the drainage system.  
    Subd. 2.  [FILING.] If the drainage system is under the 
jurisdiction of a drainage authority, the petition must be filed 
with the auditor.  If the system is under the jurisdiction of a 
watershed district, the petition must be filed with the 
secretary of the district.  
    Subd. 3.  [HEARING.] (a) When the petition is filed, the 
drainage authority in consultation with the auditor or the 
secretary shall set a time and location for a hearing on the 
partial abandonment petition and shall give notice by 
publication of the hearing to all persons interested in the 
drainage system.  
    (b) At the hearing, the drainage authority shall make 
findings and shall direct, by order, that the petitioners' 
property is removed from the drainage system if the drainage 
authority determines: 
    (1) that the waters from the petitioners' property have 
been diverted from the drainage system, or that a dam has been 
lawfully constructed and the property cannot use the drainage 
system; 
    (2) that the property is not benefited by the drainage 
system and does not use or affect the drainage system; and 
    (3) that removing the property from the drainage system 
will not prejudice the property owners and property remaining in 
the system. 
    (c) The drainage authority shall make findings and direct, 
by order, that part of the drainage system be abandoned if the 
drainage authority determines that part of the drainage system 
does not serve a substantial useful purpose to any property 
remaining in the system and is not of a substantial public 
benefit and utility.  
    Subd. 4.  [EFFECT OF REMOVING PROPERTY FROM DRAINAGE 
SYSTEM.] The property that has been removed from the drainage 
system is not affected by the drainage system at any later 
proceeding for the repair or improvement of the drainage system 
and a drainage lien or assessment for repairs or improvements 
may not be made against the property that has been removed on or 
after the date of the order.  
    Subd. 5.  [LIENS AND ASSESSMENTS ON PROPERTY REMOVED OR 
ABANDONED.] An order under this section does not release the 
property from a drainage lien filed on account of the drainage 
system before the date of the order.  An order under this 
section does not release the property from any assessment or a 
drainage lien filed on or after the date of the order for costs 
incurred on account of the drainage system before the date of 
the order.  
    Sec. 92.  [106A.811] [ABANDONMENT OF DRAINAGE SYSTEM.] 
    Subdivision 1.  [DRAINAGE LIEN PAYMENT PERIOD MUST EXPIRE.] 
After the period originally fixed or subsequently extended to 
pay the assessment of the drainage liens expires, a drainage 
system may be abandoned as provided in this section.  
    Subd. 2.  [PETITIONERS.] A petition must be signed by at 
least 51 percent of the resident property owners assessed for 
the construction of the drainage system or by the owners of not 
less than 51 percent of the area of the property assessed for 
the drainage system.  For the purpose of the petition, the 
county is the resident owner of all tax forfeited property held 
by the state and assessed benefits for the drainage system, and 
the board may execute the petition for the county as a resident 
owner.  
    Subd. 3.  [PETITION.] The petition must designate the 
drainage system proposed to be abandoned and show that the 
drainage system is not of public benefit and utility because the 
agricultural property that used the drainage system has been 
generally abandoned or because the drainage system has ceased to 
function and its restoration is not practical.  
    Subd. 4.  [FILING PETITION; JURISDICTION.] If all property 
assessed for benefits in the drainage system is in one county, 
the petition must be filed with the auditor unless the petition 
is signed by the board, in which case the petition must be made 
to the district court of the county and filed with the clerk of 
court.  If property assessed for benefits is in two or more 
counties, the petition must be filed with the auditor.  When the 
petition is filed, the drainage authority in consultation with 
the auditor, or the clerk with the approval of the court, shall 
set a time and location for a hearing on the petition.  The 
auditor or clerk shall give notice by publication of the time 
and location of the abandonment hearing to all persons 
interested.  The drainage authority or the district court where 
the petition is properly filed has jurisdiction of the petition. 
    Subd. 5.  [ABANDONMENT HEARING.] (a) At the hearing, the 
drainage authority or court shall examine the petition and 
determine whether it is sufficient and shall hear all interested 
parties.  
    (b) If a property owner assessed benefits for the drainage 
system appears and makes a written objection to the abandonment 
of the drainage system, the drainage authority or court shall 
appoint three disinterested persons as viewers to examine the 
property and report to the drainage authority or court.  The 
hearing must be adjourned to make the examination and report. 
The viewers, if appointed, shall proceed to examine the property 
of the objecting owner and report as soon as possible to the 
drainage authority or court with the description and situation 
of the property and whether the drainage system drains or 
otherwise affects the property.  
    (c) At the adjourned hearing, the drainage authority or 
court shall consider the viewers' report and all evidence 
offered, and: 
    (1) if the drainage authority determines that the drainage 
system serves any useful purpose to any property or the general 
public, the petition for abandonment must be denied; or 
    (2) if the drainage authority determines that the drainage 
system does not serve any useful purpose to any affected 
property and is not of public benefit and utility, the drainage 
authority or court shall make findings and shall, by order, 
abandon the drainage system.  
    Subd. 6.  [EFFECT OF ABANDONMENT.] After abandonment of a 
drainage system, a repair petition for the drainage system may 
not be accepted and the responsibility of the drainage authority 
for the maintenance of the drainage system ends. 
    Sec. 93.  Minnesota Statutes 1984, section 40.072, 
subdivision 3, is amended to read: 
    Subd. 3.  [PRELIMINARY PROGRAM PLANS; APPLICATION FOR 
FEDERAL OR OTHER AID; COOPERATION WITH OTHER AGENCIES; REPORT 
AND RECOMMENDATIONS TO THE COUNTY BOARD; ADOPTION OF IMPROVEMENT 
WORK PLAN.] After adoption of the resolution recommending the 
improvement work unit and program as provided in subdivision 2, 
with amendments thereto, if any, the board or boards, when the 
board or boards of county commissioners by resolution so 
directs, may make or cause to be made such further surveys and 
studies as may be necessary and thereupon make or cause to be 
made a preliminary general plan for carrying out the program for 
the improvement work unit as set forth in the resolution or any 
part thereof, with cost estimates therefor.  The board or 
boards, at the direction of the county board or boards, may make 
application for federal aid, state aid, or aid available from 
any other source for the works embraced in the program or any 
part thereof under Public Law 566 or any act amendatory thereof 
or supplementary thereto or any other applicable federal or 
state law, and may take all steps necessary to determine whether 
such aid will be available and the amount thereof.  The board 
may consider how the cost of the works of improvement or any 
part thereof above prospective federal or other aid may be met 
from the funds of the district or from the proceeds of 
assessments on benefited property or otherwise, and make 
estimates therefor.  If the cooperation or joint action of any 
adjacent soil and water conservation district or any other 
public agency is desirable for any purpose under the program or 
in connection therewith, the board, at the direction of the 
county board or boards, may negotiate with the authorities 
concerned for such cooperation or joint action as authorized in 
this chapter, and acts amendatory thereof, or as otherwise 
provided by law.  Upon completion of the foregoing steps as far 
as necessary, the board or boards may make and file a report, 
summarizing its findings thereon and its recommendations for 
further action on the program or any part thereof.  The board or 
boards shall make the plan together with the preliminary general 
plan for the improvement work unit available to the county board 
or boards and to all other public agencies and persons 
concerned, and may give such publicity thereto as the district 
board deems advisable.  The report shall contain substantially 
the same engineering information required by section 112.49, 
subdivisions 1 and 2.  The board or boards shall transmit a copy 
of the report and preliminary plan to any regional development 
agency created by Minnesota law for the region in which each 
project is located, and in those cases where the plan involves a 
project for which a permit is required from the commissioner of 
natural resources under chapter 105, or for which proceedings 
will be instituted under chapter 106 sections 1 to 92, to the 
commissioner of natural resources and to the water resources 
board.  The water resources board shall review the report and 
plan and, if it concludes that the plan is inconsistent with 
systematic administration of state water policy, shall report 
its conclusion to the board or boards and the commissioner of 
natural resources within 60 days after receiving the report and 
plan.  Thereafter the board or boards may modify and retransmit 
the report and preliminary plan to the water resources board, or 
may request a hearing on the report and plan before the water 
resources board.  The water resources board shall hear the 
matter in the same manner, and follow the same procedures, as 
provided in sections 105.76 to 105.79, for the hearing of cases 
where it consents to intervention proceedings.  Except where the 
water resources board concludes that the report and plan are 
inconsistent with state water policy, the district board or 
boards, with the approval of the county board or boards, may 
adopt and sponsor the improvement work unit and a program of 
work for the unit. 
    Sec. 94.  Minnesota Statutes 1984, section 40.072, 
subdivision 4, is amended to read: 
    Subd. 4.  [ACTION ON WORK PROJECT PURSUANT TO REPORT; 
PETITION AND HEARING.] The county board or boards, acting 
jointly under section 471.59, may take action on a project 
within the improvement work unit for construction or 
installation of works of improvement or part thereof pursuant to 
the recommendations in the report only upon a petition for a 
project signed by at least 25 percent of the owners of the land 
over which the proposed improvement work passes or upon which it 
is located, or by the owners of at least 30 percent of the area 
of such land, describing such land and requesting the county 
board or joint county board to hold a hearing on the 
practicability and desirability of carrying out the project in 
accordance with the preliminary plan and the recommendations in 
the report of the district board or boards.  If the report 
specifies that any part of the cost of the project is to be paid 
from the proceeds of assessments on benefited property, one or 
more of the petitioners, upon the filing of the petition and 
before any action is taken thereon, shall file a bond to the 
county or counties acting jointly conditioned as provided by 
section 106.041 22 in the case of a county drainage system, to 
be approved by the chairman of the board.  The county board or 
joint county board shall set a time and place for the hearing on 
the petition, and cause notice thereof to be given as provided 
in section 106.101 33, subdivision 1.  If upon the hearing the 
county board or joint county board finds that the carrying out 
of the project as requested in the petition will be feasible, in 
accordance with the recommendations of the report, and in 
furtherance of the objectives and purposes therein set forth, 
and that the estimated cost will not exceed the funds which may 
reasonably be expected to be available for payment thereof, the 
county board or joint county board may adopt a resolution so 
determining and directing further action on the project as 
hereinafter provided.  By such resolution the county board or 
joint county board shall determine the amount to be paid from 
the respective sources of available or potentially available 
funds, including federal aid, district funds, assessments on 
benefited property, and other funds, if any.  The amount payable 
from district funds may be commensurate with but shall not 
exceed the value of the general public benefit of the project to 
the district as determined by the board or boards. 
    Sec. 95.  Minnesota Statutes 1984, section 40.072, 
subdivision 5, is amended to read: 
    Subd. 5.  [ACTION ON PROJECT WITHOUT ASSESSMENTS.] If no 
part of the project cost is to be paid from assessments on 
benefited property, the county board or joint county board may 
proceed with complete surveys and detailed plans and 
specifications and make its order establishing the project.  The 
order shall contain findings substantially conforming to those 
required by section 106.201 49, subdivision 2.  Notice 
summarizing the findings and order shall be served upon those 
persons entitled to receive notice of a county drainage project 
pursuant to section 106.171 46, in the manner therein provided 
unless such notice is waived in writing by each person entitled 
to receive such notice.  The waiver of notice shall be filed 
with the county auditor.  Unless an appeal is taken within 30 
days after the notice is given, the county board or joint county 
board may proceed to acquire necessary rights or property, 
procure materials, let contracts, and take any other steps 
appropriate to complete the project.  The county board or joint 
county board may delegate its duties and powers under this 
subdivision to the district board or joint district board 
provided that the district board or joint district board shall 
not exercise the power of eminent domain. 
    Sec. 96.  Minnesota Statutes 1984, section 40.072, 
subdivision 6, is amended to read: 
    Subd. 6.  [ACTION ON PROJECT WITH ASSESSMENTS.] If any part 
of the cost of the project is to be paid from the proceeds of 
assessments on benefited property, viewers shall be appointed as 
provided in section 106.141 42, and shall report as required by 
sections 106.151 and 106.161 43, 44, and 45.  The board or joint 
board of county commissioners shall direct the petitioners or, 
with its consent, the board or joint board of supervisors, to 
provide such engineering services as may be necessary to produce 
final plans adequate for the construction of the proposed 
improvement.  The county board or joint county board shall then 
give notice of and conduct a final hearing substantially in 
accordance with sections 106.171 46 to 106.191 49 inclusive, as 
in the case of a county drainage proceeding, so far as these 
sections are consistent with this chapter, and acts amendatory 
thereof.  If it is determined that the total benefits to 
property are not as much as the amount payable from the proceeds 
of assessments as specified in the report of the board or boards 
under subdivision 3, the petition shall be dismissed and further 
action on the project discontinued except as hereinafter 
provided, unless the county board or joint county board shall 
determine that the deficiency may be met by increasing the 
amount payable from district funds or other funds, subject to 
the limitations hereinbefore prescribed, in which case further 
action for completion of the project may be taken as herein 
provided.  If it is determined that the total benefits to 
property are as much as or more than the amount payable from the 
proceeds of assessments as specified in the report and that the 
other applicable requirements of law have been complied with, 
the county board or joint county board shall by order containing 
such findings establish the project as reported or amended and 
adopt and confirm the viewers' report as made or amended.  If 
the total amount of benefits to be assessed upon property 
pursuant to the viewers' report as so adopted and confirmed is 
greater than the amount specified as payable from such 
assessments in the report of the board or boards under 
subdivision 3, the county board or joint county board may reduce 
the amounts payable from other sources of funds accordingly in 
such proportions as it may determine. Further action shall be 
taken thereon as provided in chapter 106 sections 1 to 92, so 
far as appropriate, except that each tract of land affected 
shall be assessed for the full amount of benefits, less damages, 
if any, as shown by the viewers' report as adopted and 
confirmed, unless the total amount of such benefits, less 
damages, exceeds the total actual cost of the project to be paid 
from the proceeds of assessments, in which case such cost shall 
be prorated for assessment purposes as provided in 
section 106.341 67.  Upon filing of the viewers' report as 
provided in this section the county board of each county 
affected shall provide funds to meet its proportionate share of 
the total cost of the improvement, as shown by the report and 
order of the county board or joint county board, and for such 
purposes is authorized to issue bonds of the county in such 
amount as may be necessary in the manner provided in section 
106.411 74. 
    The provision of section 106.411 74 requiring the county 
board to let a contract for construction before issuing bonds 
shall not be applicable to bonds issued to provide the funds 
required to be furnished by this section. 
    The county board or joint county board, pursuant to 
agreement with the district board or boards, may by resolution 
direct the district to undertake, construct, install, maintain, 
and operate the work of improvement upon terms mutually agreed 
upon.  However, if it is necessary to acquire property by 
eminent domain, the county, or the counties acting jointly, 
shall exercise the power of eminent domain and shall convey the 
property to the district or districts pursuant to the agreement. 
    If, pursuant to an agreement, the responsibility for a work 
of improvement is vested in a district or districts, the 
respective county treasurers shall transmit the proceeds of all 
related assessments or bond issues, when collected, to the 
treasurer of the district, who shall credit the same to the 
proper funds under the direction of the district board. 
    Sec. 97.  Minnesota Statutes 1984, section 40.072, 
subdivision 9, is amended to read: 
    Subd. 9.  [REPAIR.] The term "repair" used in this section 
means restoring the project works of improvement or any part 
thereof as nearly as practicable to the same condition as when 
originally constructed or subsequently improved. 
    After the construction of a project has been completed and 
accepted by the board of the county or district having authority 
over the project, the board shall maintain the same or such part 
thereof as lies within its jurisdiction and provide the repairs 
required to render it efficient to answer its purpose.  This 
board shall have, exercise, and perform the powers and duties of 
the county board drainage authority under section 106.471 
sections 80 to 89, except as follows.  If this board is a board 
of a soil and water conservation district, the financing of 
repairs which require assessments and bond issues shall be the 
responsibility of the county board or joint county board in a 
manner similar to that provided for the financing of the cost of 
original construction of the project and as provided in section 
106.471 sections 80 to 89, so far as appropriate. 
    Sec. 98.  Minnesota Statutes 1984, section 40.073, is 
amended to read: 
    40.073 [APPEALS.] 
    Any person aggrieved by an order of the board or joint 
board of county commissioners in any proceedings undertaken 
pursuant to section 40.072, subdivisions 5 or 6, may appeal to 
the district court upon the grounds and in the manner provided 
by section 106.631 sections 18 and 19, for a county drainage 
proceeding.  Notices required by section 106.631 sections 18 and 
19, to be filed with the county auditor shall also be filed with 
the board or joint board of supervisors.  No appeal shall be 
permitted from an order of the board or joint board of county 
commissioners or the board or joint board of supervisors made 
pursuant to section 40.072, subdivisions 5 or 6 which dismisses 
a petition or refuses to establish a project.  
    Sec. 99.  Minnesota Statutes 1984, section 88.43, 
subdivision 2, is amended to read: 
    Subd. 2.  [BENEFITS; ASSESSMENT; LIEN.] If any clearing or 
other improvement of land made by any town or city benefits any 
person, or benefits some and damages others, then the amount of 
both such benefits and damages shall be ascertained in the same 
manner as provided by law with respect to damages in 
condemnation proceedings by right of eminent domain.  All 
provisions of law relating to the determination of the amount of 
damages in condemnation proceedings shall apply to the 
determination of the value of benefits under this section, as 
far as practicable.  Any benefits so found shall be assessed 
against, and be a lien upon, the real property so benefited and 
shall be noted upon the public records and collected upon the 
same terms and in substantially the same manner as now provided 
by law for the collection of ditch and drainage assessments 
pursuant to chapter 106 sections 1 to 92.  
    Sec. 100.  Minnesota Statutes 1984, section 97.484, is 
amended to read: 
    97.484 [ASSESSMENTS TO BE PAID FROM FUND.] 
    Any assessments against the State of Minnesota under the 
provisions of sections 106.381, or 106.671 and 106.672 3, 
subdivision 2; 5; 44, subdivision 1; or section 70, shall be 
paid from moneys in the Wildlife Acquisition Fund herein created 
on all such lands or properties heretofore or hereafter acquired 
for wildlife habitat. 
    Sec. 101.  Minnesota Statutes 1984, section 97.50, 
subdivision 1, is amended to read: 
    Subdivision 1.  [POWERS.] The commissioner, director, game 
refuge patrolmen, and conservation officers are authorized to:  
    (1) execute and serve all warrants and processes issued by 
any court having jurisdiction under any law relating to wild 
animals, wild rice, use of water, conservation, protection or 
control of public waters, state-owned dams or other works 
affecting public waters or water pollution, in the same manner 
as a constable or sheriff;  
    (2) arrest, without a warrant, any person detected in the 
actual violation of any provisions of chapters 84, 97 to 102, 
105 and 106 sections 1 to 92, and section 609.68; and 
    (3) take the person before any court in the county in which 
the offense was committed and make proper complaint. 
    When a person who is arrested for any violation of the 
provisions of law listed in clause (2), which is punishable as a 
misdemeanor, is not taken into custody and immediately taken 
before a court, the arresting officer shall prepare, in 
quadruplicate, written notice to appear before a court.  The 
notice shall be in the form and has the effect of a summons and 
complaint.  It shall contain the name and address of the person 
arrested, the offense charged, and the time and the place he is 
to appear before the court.  This place must be before a court 
which has jurisdiction within the county in which the offense is 
alleged to have been committed. 
     In order to secure release, without being taken into 
custody and immediately taken before the court, the arrested 
person must give his written promise to appear before the court 
by signing, in quadruplicate, the written notice prepared by the 
arresting officer.  The officer shall retain the original of the 
notice and deliver the copy marked "SUMMONS" to the person 
arrested.  The officer shall then release the person from 
custody. 
     On or before the return day, the officer shall return the 
notice or summons to the court before whom it is returnable.  If 
the person summoned fails to appear on the return day, the court 
shall issue a warrant for his arrest.  Upon his or her arrest, 
proceedings shall be had as in other cases. 
    Sec. 102.  Minnesota Statutes 1984, section 105.42, 
subdivision 1, is amended to read: 
    Subdivision 1.  It shall be unlawful for the state, any 
person, partnership, association, private or public corporation, 
county, municipality or other political subdivision of the 
state, to construct, reconstruct, remove, abandon, transfer 
ownership, or make any change in any reservoir, dam or waterway 
obstruction on any public water; or in any manner, to change or 
diminish the course, current or cross-section of any public 
waters, wholly or partly within the state, by any means, 
including but not limited to, filling, excavating, or placing of 
any materials in or on the beds of public waters, without a 
written permit from the commissioner previously obtained.  
Application for such permit shall be in writing to the 
commissioner on forms prescribed by him.  No permit shall be 
required for work in altered natural watercourses which are part 
of drainage systems established pursuant to chapters 106 
and sections 1 to 92 and chapter 112 when the work in the waters 
is undertaken pursuant to those chapters.  
    This section does not apply to any public drainage system 
lawfully established under the provisions of chapter 106 
sections 1 to 92 which does not substantially affect any public 
waters. 
    The commissioner, subject to the approval of the county 
board, shall have power to grant permits under such terms and 
conditions as he shall prescribe, to establish, construct, 
maintain and control wharfs, docks, piers, levees, breakwaters, 
basins, canals and hangars in or adjacent to public waters of 
the state except within the corporate limits of cities. 
    Sec. 103.  Minnesota Statutes 1984, section 105.471, is 
amended to read: 
    105.471 [VENUE OF ACTIONS AGAINST COMMISSIONER; DRAINAGE 
AND CLASSIFICATION OF PUBLIC WATERS.] 
    Notwithstanding any other law to the contrary, any action 
for declaratory judgment that is commenced under chapter 555 by 
or against the commissioner to determine the validity of the 
commissioner's final decision regarding the classification of 
any waters of the state as public waters pursuant to sections 
105.38 to 105.391, or the drainage of waterbasins or 
watercourses as provided in section 106.021 sections 2 and 3, 
subdivision 1, shall be venued in the county where the water, 
watercourse or waterbasin is located, if the water, watercourse 
or waterbasin is located in one county, or in the judicial 
district where the majority of the water, watercourse or 
waterbasin is located, if the water, watercourse or waterbasin 
is located in more than one county. 
    Sec. 104.  Minnesota Statutes 1984, section 105.74, is 
amended to read: 
    105.74 [ADDITIONAL DUTIES OF BOARD.] 
    In addition to duties elsewhere prescribed, the board has 
the function defined in sections 105.72 to 105.79 when the 
decision of the agency in a proceeding involves a question of 
water policy in one or more of the areas of water conservation, 
water pollution, preservation and management of wildlife, 
drainage, soil conservation, public recreation, forest 
management, and municipal planning under any of the following:  
Sections 84.57, 97.48, subdivision 13, 105.41, 105.42, 105.43, 
105.44, 105.64, 106.021, 106.671 2, 3, 115.04, 115.05, and 
chapter 110. 
    Sec. 105.  Minnesota Statutes 1984, section 105.81, is 
amended to read: 
    105.81 [PETITION; BOND; INVESTIGATION; REPORT; HEARING; 
ORDER.] 
    For the purpose of conserving and making more adequate use 
of our water resources, any person, public or municipal 
corporation, governmental subdivision, the state or any of its 
departments or agencies, the commissioner of natural resources 
and the United States or any of its agencies, may petition the 
county board in the case of a system lying wholly within one 
county or the district court in the case of a drainage system 
affecting two or more counties for the installation of dams or 
other control works in said ditches to impound or divert waters 
for any beneficial use.  Said petition shall contain the 
location of the installation, plans and specifications for the 
proposed structure, and a map of the areas likely to be affected 
by the impoundment or diversion.  The petitioner shall agree to 
be responsible for the cost of installation and construction of 
the structure.  Upon filing of the petition, the petitioners 
shall file a bond as provided in sections 106.041 and 106.051 22 
and 23.  No bond shall be required if the petition is filed by 
the state, any of its departments or agencies, the commissioner 
of natural resources, the United States or any of its agencies, 
and cities.  Said petition shall also be accompanied by a permit 
from the commissioner of natural resources as required in 
sections 105.41 and 105.42.  
    On receipt of the petition, bond, and permit, if required, 
the board or court shall appoint an engineer to investigate the 
effect of the proposed installation and file a report of his 
findings.  Upon filing of the engineer's report, notice shall be 
given and a public hearing held as provided in section 106.101 
33.  If at this hearing it appears from the engineer's report 
and other evidence presented that such installation will be of a 
public or private benefit and that it will not impair the 
utility of the ditch or deprive affected land owners of the 
benefit thereof, the board or court shall issue a permit 
authorizing its installation.  Before the petitioner shall 
install or construct any impoundment or diversion, he shall 
obtain such rights-of-way and flowage easements from all owners 
of land to be affected thereby.  
    The order of the court modifying the ditch system shall 
provide that all construction and subsequent maintenance and 
repairs of the ditch modification shall be done and performed by 
the petitioner without any cost to the owners of lands and 
properties previously within the drainage system.  
    Sec. 106.  Minnesota Statutes 1984, section 111.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [CHIEF ENGINEER, ATTORNEY.] The board may employ 
a chief engineer and an attorney, and such other engineers and 
attorneys or agents or assistants as are needful and necessary 
and shall provide for their compensation.  All such expenses 
shall be, as far as practicable, as a part of the costs of each 
improvement upon which such engineer and attorney perform 
services, and as far as applicable shall be governed by section 
106.431 76. 
    Sec. 107.  Minnesota Statutes 1984, section 111.11, is 
amended to read: 
     111.11 [ESTABLISHMENT OF DISTRICT; CLASSES.] 
     After the organization of the board of directors of any 
drainage and conservancy district organized under the provisions 
of sections 111.02 to 111.42 and upon filing with the clerk of 
the board a petition signed by not less than 25 freeholders of 
the district (but in no event shall more than 25 percent of the 
owners of the property affected be required), or by the board of 
county commissioners of any county, or the council of any city 
likely to be affected by the proposed improvement therein, 
asking for the construction within the limits of the conservancy 
district of any of the improvements authorized by the provisions 
of sections 111.02 to 111.42 relative to drainage, regulation, 
control, or conservation of the waters of any lake, pond, marsh, 
or body of water, river, stream, watercourse, ditch, or drain 
within the district which may cover the whole or any part of the 
improvement contemplated when the district was organized, 
therein describing the need of the proposed improvement, the 
extent thereof, and describing in general terms the bodies of 
water, streams, or watercourses proposed to be improved, or 
reservoirs or other improvements constructed; and, if the 
construction of a ditch or drain as a part of the proposed 
improvement contemplated, a description of the starting point, 
the general course and termination thereof shall be given 
therein, or if the contemplated improvements require that any 
ditch or drain established and constructed under any law of this 
state, or any portion thereof, be utilized for the protection of 
fires in areas subject to destruction or damage by fire or for 
irrigation, all as specified, a description of such ditch and 
drain, or the portions thereof so required, and a general 
description of such areas, protection whereof from fire is 
sought, or irrigation is sought, setting forth the reasons and 
necessity for such improvements and that the same, if 
constructed, will benefit public health and general welfare of 
the inhabitants in that vicinity, and the petition is to be 
accompanied by a bond signed by the petitioners, or any number 
of them, or other parties in their behalf, in such sum as the 
board of directors of such district may specify and such as it 
shall approve, conditioned for payment of all costs or expenses 
in connection with such improvements in the event the petition, 
as therein set forth or subsequently modified, is not granted; 
it shall be the duty of the board of directors of the district 
to cause to be made, at the earliest possible date, by its 
engineer, all necessary surveys, maps, plats, profiles, and 
plans covering the proposed improvements so as to fully inform 
the board as to the merits and practicability of proposed 
improvements, and, in making the surveys, plats, profiles, and 
report, the engineer shall, so far as practicable, conform to 
the requirements of General Statutes 1923, Section 6678, and the 
board shall have authority to correct, change, or modify the 
proposed improvements, as outlined in the petition, and if the 
report of the engineer is favorable to the construction of the 
improvements, and is approved by the board of directors, the 
board shall, with the least possible delay, appoint three 
disinterested citizens of the state to act as viewers, and the 
viewers so selected shall, after subscribing an oath to 
faithfully and impartially perform their duties, proceed to 
personally inspect and examine all lands, highways, and other 
property likely to be affected by the improvements, or that may 
be used or taken for the construction or maintenance thereof and 
shall, in the performance of their duties so far as practicable 
comply with the provisions of sections 106.141 and 106.151 42 to 
45 and make and file with the clerk of the board with such plans 
and specifications a detailed statement showing the actual 
benefits and damages that will result to individuals, property, 
or corporations from the construction of the improvements, and a 
list of lands and other property, including highways and 
corporations, that will be actually benefited or damaged, and 
the amount thereof, and include lands, roads, corporations, and 
other property receiving actual benefits by way of drainage or 
control of flood waters, or by regulation, conservation, and 
application of waters for fire protection and irrigation, as 
hereinbefore authorized, and lands or water powers further down 
the valley and include all lands to which a drainage outlet is 
supplied by such improvement by way of increased facilities for 
drainage or control of flood waters or protection from fire or 
for irrigation, and all such property and corporations shall be 
assessable for the cost of the proposed improvement in 
proportion to the actual benefits received, as finally 
determined by the court; provided, the board of directors of the 
district may elect to levy no assessment under this section upon 
water powers, but collect for such improvement as otherwise 
provided in sections 111.02 to 111.42. General Statutes 1923, 
Sections 6681 and 6682, so far as applicable, shall apply to and 
govern the work of the viewers under sections 111.02 to 111.42. 
In any case where fire protection is part of the relief prayed 
for in the petition and the utilization of any existing ditch or 
drain, or any portion thereof, is alleged to be necessary 
thereto, the petition for such improvements, before being 
presented to the board of directors, shall be signed by not less 
than 50 percent of the resident freeholders (but in no event 
shall more than 25 signers be required) whose lands are affected 
by the ditch or drain, or portion thereof, to be utilized, and 
approved by resolution of the board of county commissioners of 
each county wherein the same is located. 
    Sec. 108.  Minnesota Statutes 1984, section 111.13, is 
amended to read: 
     111.13 [MODIFICATIONS, APPROVAL OR REJECTION.] 
    At the time and place specified in the notice, the court 
shall hear all parties interested for and against the granting 
of the petition and confirming the reports, and may order and 
direct the modification of the plans and specifications and the 
assessments of benefits and damages and amend or change the list 
of property reported as assessable for the construction and 
maintenance thereof, or may recommit the same to the engineer or 
viewers, or both, for changes.  If upon full hearing the court 
shall find that the improvement will be conducive to the public 
health and promote the general welfare and cause the protection 
and reclamation of wet or overflowed lands or the control of 
flood waters in streams, channels, and reservoirs, or aid in the 
prevention of fires in the areas, or any purpose authorized by 
sections 111.02 to 111.42, in the drainage and conservancy 
district and that the benefits resulting therefrom will be 
greater than the costs of the construction and damages, and a 
sum equal to 15 percent of the cost of the construction, 
exclusive of damages, for maintenance, then the court shall make 
its findings accordingly and order and direct the construction 
of the improvement and confirm the report of the engineer and 
the findings and report of the board or the viewers with 
reference to benefits and damages and lands assessable, and may, 
by this order, authorize the board of the district to construct 
the whole or any part of the improvement petitioned for or to 
let contracts for the improvement ordered as a whole or for 
different parts thereof separately.  All persons, parties, or 
corporations affected by the order shall have the right to 
appeal on questions of benefits and damages in the manner now 
provided for appeals in the case of judicial ditches, pursuant 
to provisions of section 106.631 sections 18 and 19. 
    If any ditch or drain, or any portion thereof, mentioned in 
the petition and reports is proper to be utilized for any of the 
objects or purposes of sections 111.02 to 111.42, the court 
shall include in its findings all matters in respect thereto and 
in and by the order fix and limit the use and application of the 
same therefor, taking care not to destroy the ditch, or any part 
thereof, so used for the purposes for which it was established.  
Upon the entry of the order, the board of directors of the 
district shall have and exercise all the authority thereover 
theretofore vested in any public corporation or administrative 
body as to such ditch or drain, or portion thereof, and be 
charged with all the duties of any such public corporation or 
administrative body as to the upkeep, repair, and maintenance of 
any such ditch, or the part thereof taken under sections 111.02 
to 111.42.  
    Sec. 109.  Minnesota Statutes 1984, section 111.30, is 
amended to read: 
     111.30 [APPORTIONMENT OF COSTS.] 
    At the time set for hearing on the report and petition of 
the board of directors of any district and the report of the 
engineer asking for the establishment of any improvement under 
the provisions of sections 111.02 to 111.42, or at any time 
subsequent thereto, upon five days' notice, in writing, to the 
auditor of each county containing property affected by such 
improvement, the court shall apportion the amount of the total 
costs of the construction of the improvements among the counties 
affected in proportion to the benefits received and shall fix 
and determine the amount to be paid by each and, upon similar 
notice to the auditor, the judge of the district court may, at 
any time, modify his order as justice may require, or make 
additional orders covering additional expense.  The word 
"expense", as used in this section, shall be construed to mean 
every item of cost of the improvement from its inception to its 
completion and all fees and expenses paid or incurred, including 
all damages awarded; and, upon the filing of the order, or a 
certified copy thereof, with the auditor of each county 
affected, together with a list of all property in the county 
affected and a statement of all benefits and damages affecting 
the same, and such other information as the court, by order, may 
direct, it shall be the duty of the county board of each county 
to provide the necessary funds to meet the proportionate share 
of the cost of the improvement, as specified in the order, in 
the same manner as now provided in the case of judicial ditch 
proceedings, under section 106.411 74.  Immediately, or at the 
earliest date possible following the letting of contracts for 
the construction of the improvement by the board of directors of 
the district, it shall cause to be made and filed, with its 
clerk and with the auditor of each county affected, a statement 
showing the total cost of the improvement, including expenses as 
nearly as they can be ascertained, and the proportionate amount 
that the property within each county affected shall be required 
to pay on the basis fixed by the order of the court, together 
with a list of all property benefited within such county; and 
thereupon it shall become the duty of the auditor of each county 
to cause to be made and recorded the tabular statement and lien 
against the property benefited within the county the amount to 
be paid by the property in the county, in accordance with the 
provisions of sections 106.341, 106.351, and 106.361 67 and 68; 
and it shall be the duty of the county commissioners of each 
county to provide funds to meet the proportionate share of the 
total cost of the improvement, as shown by the report of the 
board of the drainage and conservancy district and the order of 
the court, and the county board is authorized to exercise all 
rights and authority in so doing now granted to the board of 
county commissioners under the provisions of sections 106.341 
and 106.411 67, subdivisions 1 and 2; and 74 and other 
provisions relating to county and judicial ditch proceedings.  
It shall be the duty of the respective county auditors and 
county treasurers to levy and collect the amount shown in the 
tabular statement and lien, as provided in sections 106.371 69 
and 106.381 70.  All moneys received by the treasurer of any 
county from the sale of bonds, assessments, or otherwise for the 
benefit of the district shall be by him accounted for and paid 
over to the treasurer of the district.  
    Sec. 110.  Minnesota Statutes 1984, section 111.31, is 
amended to read: 
    111.31 [ASSESSMENTS.] 
    Upon the filing by the board of directors of a drainage and 
conservancy district with the auditor of any county of a 
statement as provided in section 111.30, giving a list of the 
property and corporations benefited or damaged or otherwise 
affected by any proposed improvement, it shall be the duty of 
the auditor to assess the amount specified in such list against 
the lands and municipalities or other corporations as therein 
specified in accordance with the provisions of section 106.381 
70, he shall proceed to levy and collect the sums specified in 
the lists against the property and corporations in accordance 
with the provisions thereof and, in the event the sum so 
reported shall become a direct charge against the county, it may 
be paid by such county out of its road and bridge fund, or 
otherwise, as the county commissioners may direct, and may be 
paid in whole or in instalments as may be specified by the board 
of county commissioners of the county.  No assessment shall be 
levied against any property or corporation benefited under the 
provisions of sections 111.02 to 111.42 in excess of the amounts 
of benefits received as fixed by the order of the court 
directing the construction of the improvement or subsequently 
determined on appeal. 
    Sec. 111.  Minnesota Statutes 1984, section 111.36, is 
amended to read: 
    111.36 [NEGLECT OF AFFAIRS.] 
    The provisions of section 106.641 16 relating to the 
obstruction or injury of work shall apply to any and all 
improvements made or authorized under the provisions of sections 
111.02 to 111.42, and any other provision contained in the laws 
of this state relating to judicial or county ditches providing 
for punishment for damages committed to or interfering with such 
work shall apply to all improvements made under the provisions 
of sections 111.02 to 111.42. 
    Sec. 112.  Minnesota Statutes 1984, section 111.78, is 
amended to read: 
    111.78 [LIENS TO BEAR INTEREST.] 
    The amount that each tract of land, public or private, 
shall be liable for on account of the construction of works 
authorized in sections 111.65 to 111.80 shall bear interest from 
the date of the filing of the auditor's statement in the office 
of the county recorder at the legal rate until paid. 
    Such liens may be paid to the county treasurer at any time 
after the recording of the auditor's statement in the office of 
the county recorder. 
    When payment of the full amount of the liens with interest 
shall at any time be made the county auditor, upon presentation 
of a receipt from the county treasurer to that effect, shall 
issue under his hand a certificate of such payment and the same 
when recorded in the office of the county recorder shall release 
and discharge the lien of record. 
    On or before November 15 next following the filing by the 
auditor of such statement, he shall enter on the tax lists of 
the county the amount of the lien against each tract of land, 
all of which shall be payable as directed by the court on such 
tract, which shall be subject to and be collected with like 
penalties as all other taxes. 
    The auditor of the county wherein the proceedings are held 
is hereby authorized, upon order of the court, to issue warrants 
of the county to pay the official costs of such proceedings and 
when the costs are assessed against the lands in more than one 
county such costs are to be determined and apportioned between 
the counties affected in proportion to the benefits assessed 
against the lands and property in such county.  The issued 
warrants are to draw interest at the legal rate, subject to 
their payment as provided under section 106.451 78. 
    Sec. 113.  Minnesota Statutes 1984, section 112.431, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] (a) For the purpose of this 
section the terms defined in this subdivision have the meanings 
ascribed to them.  
    (b) "Drainage system" means a ditch as defined by section 
106.011, subdivision 17 1, subdivision 11.  
    (c) "Watershed district" means any watershed district 
established pursuant to the provisions of chapter 112, wholly or 
partially in a metropolitan county.  
    (d) "Metropolitan county" means any one of the following 
counties:  Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or 
Washington.  
    (e) "Metropolitan area" means the combined area of the 
metropolitan counties.  
    Sec. 114.  Minnesota Statutes 1984, section 112.48, 
subdivision 1, is amended to read: 
    Subdivision 1.  After the overall plan of the district has 
been prescribed by the board, as provided in section 112.46, a 
petition may be filed with the managers for any project within 
the district conforming in general with the plan.  The petition 
must be signed:  
     (1) By not less than 25 percent of the resident 
freeholders, or by the owners of more than 25 percent of the 
land within the limits of the area proposed to be improved 
unless the project consists of the establishment of a drainage 
system as defined in chapter 106 sections 1 to 92 or the 
improvement of an existing drainage system;  
    (2) By a majority of the resident owners of the land over 
which the proposed project passes or is located, or by the 
owners of at least 60 percent of the area of the land, if the 
project consists of the establishment of a drainage system as 
defined in chapter 106 sections 1 to 92;  
     (3) By not less than 26 percent of the resident owners of 
the property affected by the proposed project or over which the 
proposed project passes or by the owners of not less than 26 
percent of the area affected or over which the proposed project 
passes if the project consists of the improvement of an existing 
drainage system as defined in chapter 106 sections 1 to 92;  
     (4) By a county board of any county affected; or 
     (5) By the governing body of any city lying wholly or 
partly within the area proposed to be improved; provided that if 
the proposed project affects lands exclusively within a city, 
the petition shall originate from the governing body of the city.
     For the purpose of this subdivision, holders of easements 
for electric or telephone transmission or distribution lines are 
not considered freeholders or owners.  
          The petition shall contain the following: 
         (a) A description of the proposed project, and the purpose 
to be accomplished; 
         (b) A description of the lands over which the proposed 
project passes or is located; 
         (c) A general description of the part of the district which 
will be affected, if less than the entire district; 
         (d) The need and necessity for the proposed improvement; 
         (e) That the proposed project will be conducive to public 
health, convenience, and welfare; 
         (f) A statement that the petitioners will pay all costs and 
expenses which may be incurred in case the proceedings are 
dismissed or for any reason no construction contract is let for 
the project. 
    Sec. 115.  Minnesota Statutes 1984, section 112.50, is 
amended to read: 
    112.50 [APPRAISALS.] 
    Subdivision 1.  Upon the filing of the engineer's report 
the managers shall, with the least possible delay, appoint three 
disinterested resident freeholders of the state to act as 
appraisers.  These appraisers shall subscribe an oath to 
faithfully and impartially perform their duties, and with or 
without the engineer, shall determine the benefits or damages to 
all lands and properties affected by the proposed project or 
improvement, including lands owned by the state of Minnesota or 
any department thereof, highways, and other property likely to 
be affected by the proposed improvement or that may be used or 
taken for the construction or maintenance thereof. Benefits and 
damages to lands owned by the state of Minnesota or any 
department thereof held and used for the purposes described in 
section 106.672 sections 5 and 44, subdivision 1, shall be 
determined subject to the provisions thereof, so far as 
applicable. Each appraiser may be paid on a per diem basis for 
every day necessarily engaged in the performance of his duties 
and for his actual and necessary expenses.  The compensation 
shall be fixed by the managers, to be paid by the district and 
included in the cost of improvement.  The managers of the 
watershed districts may in their discretion use the following 
procedure for the purpose of determining benefits and damages.  
Upon the filing of the engineer's report the managers with the 
assistance of the engineer shall determine the benefits or 
damages to all lands and properties affected by the proposed 
project or improvement, including lands owned by the state of 
Minnesota or any department thereof, highways, and other 
property likely to be affected by the proposed improvement or 
that may be used or taken from the construction or maintenance 
thereof.  Benefits and damages to lands owned by the state of 
Minnesota or any department thereof held and used for the 
purposes described in section 106.672 sections 5 and 44, 
subdivision 1 shall be determined subject to the provisions 
thereof, so far as applicable.  The managers shall also 
determine the amount to be paid and generally assessed by the 
watershed district for the basic water management portion of the 
improvement projects. 
    Sec. 116.  Minnesota Statutes 1984, section 112.501, 
subdivision 1, is amended to read: 
    Subdivision 1.  Where the proposed improvement, includes or 
prays for the construction or improvement of any ditch, stream, 
river, or watercourse, or any structures for the control or 
alleviation of damages from flood waters, the appraisers shall 
be governed by section 106.151 sections 43 to 45. 
    Sec. 117.  Minnesota Statutes 1984, section 112.541, is 
amended to read: 
    112.541 [PROCEDURE WHEN CONTRACT IS NOT LET.] 
    If after the receipt of the bids, no bids are received 
except for a price more than 30 percent in excess of the 
engineers estimate as contained in his report, or for a price in 
excess of the benefits, less damages and other costs, the 
managers shall follow the procedure described in section 106.241 
57. 
    Sec. 118.  Minnesota Statutes 1984, section 112.59, is 
amended to read: 
     112.59 [CONTROL OF CONTRACTS.] 
    In all cases where contracts are let by the managers, they 
shall have full control of all matters pertaining thereto.  If a 
contractor fails to complete the improvement within the time or 
in the manner specified in the contract, the managers may extend 
the time for completion or may refuse an extension of time or 
may cancel the contract and readvertise and relet the contract.  
They may require the surety for the contractor to complete the 
improvement or proceed to have the contract otherwise completed 
at the expense of the contractor and his surety.  They may take 
such other action with reference thereto that the occasion may 
require in the interest of the district.  The provisions of 
chapter 106 sections 1 to 92, so far as pertinent, apply to and 
govern the relations between the engineer and the contractor, 
including the examination and report of the engineer and the 
amount and time of payment.  The managers shall keep an accurate 
account of all expenses incurred, which shall include the 
compensation of the engineer and his assistants, the 
compensation and expenses of the appraisers as provided in 
section 112.50, the compensation of petitioners' attorney, the 
cost of petitioners' bond, the fees of all county officials 
necessitated by the improvement which shall be in addition to 
all fees otherwise allowed by law, and the time and expenses of 
all employees of the district, including the expenses of the 
managers while engaged in any improvement. The fees and expenses 
provided for herein shall be audited, allowed and paid upon the 
order of the managers and shall be charged to and be treated as 
a part of the cost of the improvement.  
    Sec. 119.  Minnesota Statutes 1984, section 112.60, 
subdivision 1, is amended to read: 
    Subdivision 1.  Upon the filing by the managers with the 
auditor of any county of a statement listing the property and 
corporations benefited or damaged or otherwise affected by any 
improvement as found by the appraisers and approved by the 
managers, he shall assess the amount specified in such list 
against the lands and municipalities or other corporations as 
therein specified in accordance with the pertinent provisions of 
chapter 106 sections 1 to 92. 
    Sec. 120.  Minnesota Statutes 1984, section 112.60, 
subdivision 2, is amended to read: 
    Subd. 2.  Upon filing of the statement as provided in 
subdivision 1 the county board of each county affected shall 
provide funds to meet its proportionate share of the total cost 
of the improvements, as shown by the report and order of the 
managers of the district, and for such purposes is authorized to 
issue bonds of the county in such amount as may be necessary in 
the manner provided by section 106.411 74.  In the event an 
improvement is to be constructed under the provisions of section 
112.69, the provisions of section 106.411 74 requiring the 
county board to let a contract for construction before issuing 
bonds shall not be applicable to bonds issued to provide the 
funds required to be furnished by this section.  
    Sec. 121.  Minnesota Statutes 1984, section 112.60, 
subdivision 3, is amended to read: 
    Subd. 3.  The respective county auditors and county 
treasurers shall levy and collect the amount shown in the 
tabular statement and lien as provided in sections 106.341 67 to 
106.401 73.  All moneys received by the treasurer of any county 
from the sale of bonds, assessments, or otherwise, for the 
benefit of the district shall be by him accounted for and paid 
over to the treasurer of the district.  
    Sec. 122.  Minnesota Statutes 1984, section 112.64, 
subdivision 2, is amended to read: 
    Subd. 2.  For the purpose of creating a maintenance fund 
for normal and routine maintenance of a project, the board of 
managers is authorized to apportion and assess the amount of the 
fund against all the parcels of land and municipal corporations 
previously assessed for benefits in proceedings for the 
construction of the project.  The assessment shall be made pro 
rata according to benefits determined.  No assessment for the 
benefit of the maintenance fund shall be made when the fund 
exceeds 20 percent of the original cost of construction of the 
project.  Upon receiving the assessment order from the board of 
managers, the auditors of the counties affected shall file for 
record in the office of the county recorder for the county a 
tabular lien statement covering the assessment.  The assessment 
shall be collected as provided in the order in the same manner 
as provided in section 106.471 86.  Before ordering the levy of 
an assessment for the benefit of the maintenance fund, the board 
of managers, in its discretion, may give notice of a hearing on 
the matter. 
    Sec. 123.  Minnesota Statutes 1984, section 112.64, 
subdivision 3, is amended to read: 
    Subd. 3.  If the engineer certifies to the board of 
managers, in his annual report or otherwise, that an improvement 
of the district is in such a state of disrepair that it cannot 
be restored by normal and routine maintenance to the same 
condition as when originally constructed or subsequently 
improved, or that a ditch or channel must be widened or 
deepened, or that any improvement of the district must be 
altered or improved, in order to attain the level of operating 
efficiency contemplated at the time of the original 
construction, the board of managers, before ordering any repairs 
other than normal and routine maintenance, shall order the 
engineer to prepare and submit to the board of managers 
technical and cost specifications on the work necessary to 
restore, or improve the improvement to the desired level of 
operating efficiency.  Upon receiving the engineer's report, the 
board of managers shall set a date for hearing on the report and 
give notice of the hearing in the same manner as in the original 
proceeding on the construction of the improvement.  If upon 
hearing the board of managers finds that the repair or 
improvement is in compliance with the provisions, is necessary 
to accomplish the purposes of this chapter, and that the cost of 
the repair or improvement will not exceed its benefits, they may 
order the repair or improvement and assess the cost against the 
benefited properties.  The cost shall be apportioned and 
assessed pro rata upon all lands and property that were assessed 
for the construction of the improvement.  No single levy for 
repair shall exceed the amount of benefits originally 
determined.  The board of managers shall file a copy of the 
order for levy with the auditor of each county which contains 
affected properties.  The auditor shall extend the levy against 
affected properties as in proceedings for the levy, assessment 
and collection of taxes levied in drainage proceedings conducted 
under chapter 106 sections 1 to 92. 
    Sec. 124.  Minnesota Statutes 1984, section 112.65, 
subdivision 1, is amended to read: 
    Subdivision 1.  The managers of a district shall take over 
when directed by the district court or county board any judicial 
or county drainage system within the district, together with the 
right to repair and maintain the same.  Such transfer may be 
initiated by the district court or county board, or such 
transfer may be initiated by a petition from any person having 
an interest in the drainage system or by the managers.  No such 
transfer shall be made until the district court or county board 
has held a hearing thereon.  Due notice of the proposed transfer 
together with the time and place of hearing shall be given by 
two weeks published notice in a legal newspaper of general 
circulation in the area involved.  All interested persons may 
appear and be heard.  Following the hearing, the district court 
or county board shall make its order directing that the managers 
of a district take over the affected judicial or county drainage 
system, unless it appears that the take over would not be in the 
public welfare or public interest and would not serve the 
purpose of this chapter.  When the transfer is directed all 
proceedings for repair and maintenance shall thereafter conform 
to the provisions of chapter 106 sections 1 to 92.  
    Sec. 125.  Minnesota Statutes 1984, section 161.28, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PETITION.] Upon the filing of a petition 
by the commissioner with the appropriate county auditor setting 
forth that it would be advantageous or desirable in the 
construction or maintenance of a trunk highway to make a minor 
alteration or change in a public drainage system directly 
affecting a trunk highway and that the alteration or change will 
not affect the functioning or efficiency of the public drainage 
system, the auditor shall fix a time and place for hearing and 
give notice of the hearing by publication, as defined in section 
106.171 46.  Upon the filing of the petition the commissioner 
shall also file a plan showing in detail the alteration or 
change petitioned for.  If upon the hearing it appears to the 
county board or joint county ditch authority that the alteration 
or change in the public drainage system will not affect or 
impair the efficiency of the drainage system, the board or 
authority shall make its order allowing the commissioner to make 
the alteration or change petitioned for.  Upon the making of the 
order by the county board or the joint county ditch authority, 
the commissioner may proceed at the sole cost and expense of the 
state to make the alterations or changes as may be in the order 
allowed, damages, if any, for any additional lands necessary for 
the change or alteration being first duly paid or secured.  Upon 
completion of the alteration or change the commissioner shall 
file with the appropriate auditor a map drawn to scale showing 
the change or alteration made and shall also file a profile of 
all lines of the alteration or change in the ditch showing 
graphically the elevation of the ground and gradient, whether 
open or tiled, the size of tile, and the bottom width and side 
slope of open ditch sections, and such other information as may 
appear necessary for understanding.  Upon the completion of the 
alteration or change herein provided for, the ditch shall 
thereafter include such alteration or change as a part of it 
with the same force and effect as though it had been originally 
so constructed and established.  
    Sec. 126.  Minnesota Statutes 1984, section 163.17, is 
amended to read: 
    163.17 [DRAINAGE SYSTEMS AFFECTING HIGHWAYS; ALTERATIONS.] 
    Upon the filing of a resolution by the county board of any 
county with the county auditor, in the case of a public ditch 
system lying wholly within a county, or with the clerk of the 
district court having jurisdiction over said ditch in the case 
of a ditch system affecting two or more counties, therein 
setting forth that it would be advantageous or desirable in the 
construction or maintenance of a highway under the jurisdiction 
of the county to make a minor alteration or change in a public 
ditch system directly affecting the highway, and that the 
alteration or change will not affect the functioning or 
efficiency of the ditch system, it shall be the duty of the 
auditor, or the clerk with the approval of the judge, to fix a 
time and place for hearing thereon and to give notice of hearing 
by publication as defined by section 106.011 1, subdivision 2 
21.  Upon the filing of the resolution, the board shall also 
cause to be filed a plan showing in detail the alteration or 
change therein described.  If upon the hearing it shall appear 
to the county board or district court that the alteration or 
change in the public ditch system will not affect or impair the 
efficiency of the ditch system, the board or court shall make 
its order authorizing the county to cause the alteration or 
change to be made.  Upon the making of the order by the county 
board or the court, the county board may proceed at the sole 
cost and expense of the county to make the alterations or 
changes as may be in the order allowed; damages, if any, 
occasioned thereby being first duly paid or secured by the 
county.  Upon completion of the alteration or change, the county 
board shall cause to be filed with the auditor or clerk, a map 
and profile drawn to scale showing thereon the change or 
alteration made.  If the map and profile be filed with the 
clerk, duplicates thereof shall also be filed with the auditor 
of each county affected.  Upon the completion of the alteration 
or change herein provided for, the ditch shall thereafter 
include the alteration or change as part thereof with the same 
force and effect as though it had been originally so constructed 
and established.  
    Sec. 127.  Minnesota Statutes 1984, section 357.021, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
collected by the clerk of district court shall be as follows: 
     (1) In every civil action or proceeding in said court, the 
plaintiff, petitioner, or other moving party shall pay, when the 
first paper on his part is filed in said action, a fee of $20, 
except that in an action for marriage dissolution, the fee is 
$55. 
     The defendant or other adverse or intervening party, or any 
one or more of several defendants or other adverse or 
intervening parties appearing separately from the others, shall 
pay, when the first paper on his or their part is filed in said 
action, a fee of $15. 
     The party requesting a trial by jury shall pay $15. 
     The fees above stated shall be the full trial fee 
chargeable to said parties irrespective of whether trial be to 
the court alone, to the court and jury, or disposed of without 
trial, and shall include the entry of judgment in the action, 
but does not include copies or certified copies of any papers so 
filed or proceedings under chapter 106 sections 1 to 92, except 
the provisions therein as to appeals. 
     (2) Certified copy of any instrument from a civil or 
criminal proceeding $5 and $3.50 for an uncertified copy. 
      (3) Issuing a subpoena $1 for each name. 
      (4) Issuing an execution and filing the return thereof; 
issuing a writ of attachment, injunction, habeas corpus, 
mandamus, quo warranto, certiorari, or other writs not 
specifically mentioned, $5. 
      (5) Issuing a transcript of judgment, or for filing and 
docketing a transcript of judgment from another court, $5. 
      (6) Filing and entering a satisfaction of judgment, partial 
satisfaction or assignment of judgment, $5. 
      (7) Certificate as to existence or non-existence of 
judgments docketed, $1 for each name certified to and $1 for 
each judgment certified to. 
      (8) Filing and indexing trade name; or recording notary 
commission; or recording basic science certificate; or recording 
certificate of physicians, osteopaths, chiropractors, 
veterinarians or optometrists, $5. 
      (9) For the filing of each partial, final, or annual 
account in all trusteeships, $10. 
      (10) All other services required by law for which no fee is 
provided such fee as compares favorably with those herein 
provided, or such as may be fixed by rule or order of the court. 
    Sec. 128.  Minnesota Statutes 1984, section 375.471, is 
amended to read: 
    375.471 [LAND CONSERVATION AND UTILIZATION; FEDERAL AID.] 
    The county boards of the several counties which have been 
designated as a resource conservation and development project 
area under 7 USCA, Sec. 1011(e) and acts amendatory thereof, may 
enter into agreements as necessary with the secretary of 
agriculture of the United States and other agencies of the 
federal government for the program of land conservation and land 
utilization authorized by 7 USCA, Sec. 1010 and acts amendatory 
thereof, to accept assistance for the program under 7 USCA, Sec. 
1011 and acts amendatory thereof, to engage in works of 
improvement as necessary for the purpose of the acts and to 
cooperate with the secretary of agriculture and federal agencies 
so that residents of this state obtain the benefits and 
advantages available to them and intended by congress to be 
available by the acts.  The county boards shall comply with the 
requirements of federal law and any rules and regulations 
promulgated under it and with appropriate state laws to 
accomplish the purposes intended by this section.  If a 
proceeding is instituted by petition for an improvement under 
this section, it may be conducted by a board in the same manner 
provided for the establishment of a drainage system under 
chapter 106 sections 1 to 92.  A majority of the landowners as 
defined in section 106.031 21, subdivision 3, shall be required 
for a valid petition.  They may also proceed under authority 
provided by other law. 
    Sec. 129.  Minnesota Statutes 1984, section 471.345, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONTRACTS OVER $15,000.] If the amount of the 
contract is estimated to exceed $15,000, sealed bids shall be 
solicited by public notice in the manner and subject to the 
requirements of the law governing contracts by the particular 
municipality or class thereof provided that with regard to 
repairs and maintenance of ditches, bids shall not be required 
if the estimated amount of the contract does not exceed the 
amount specified in section 106.471, subdivision 2 81, 
subdivisions 4, 5, and 6. 
    Sec. 130.  Minnesota Statutes 1984, section 473.877, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] Any agreement under section 
471.59 to jointly or cooperatively manage or plan for the 
management of surface water in a watershed delineated pursuant 
to subdivision 2, as required by sections 473.875 to 473.883, 
may provide, in addition to other provisions authorized by 
section 471.59, for a joint board having:  
     (a) the authority to prepare, adopt, and implement a plan 
for the watershed meeting the requirements of section 473.878;  
     (b) the authority to review and approve local water 
management plans as provided in section 473.879;  
     (c) the authority of a watershed district under chapter 112 
to regulate the use and development of land in the watershed 
when one or more of the following conditions exists:  (1) the 
local government unit exercising planning and zoning authority 
over the land under sections 366.10 to 366.19, 394.21 to 394.37, 
or 462.351 to 462.364, does not have a local water management 
plan approved and adopted in accordance with the requirements of 
section 473.879 or has not adopted the implementation program 
described in the plan; (2) an application to the local 
government unit for a permit for the use and development of land 
requires an amendment to or variance from the adopted local 
water management plan or implementation program of the local 
unit; (3) the local government unit has authorized the 
organization to require permits for the use and development of 
land;  
     (d) the authority of a watershed district under section 
112.65 to accept the transfer of drainage systems in the 
watershed, to repair, improve, and maintain the transferred 
drainage systems, and to construct all new drainage systems and 
improvements of existing drainage systems in the watershed, 
provided that projects may be carried out under the powers 
granted in chapter 106, 112, or 473 and sections 1 to 92 and 
that proceedings of the board with respect to the systems must 
be in conformance with the watershed plan adopted under section 
473.878; and 
     (e) other powers necessary to exercise the authority under 
clauses (a) to (c), including the power to enter into contracts 
for the performance of functions with governmental units or 
persons.  
    Sec. 131.  Minnesota Statutes 1984, section 473.878, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONTENTS.] The plan shall:  
     (a) Describe the existing physical environment, land use, 
and development in the area and the environment, land use, and 
development proposed in existing local and metropolitan 
comprehensive plans;  
     (b) Present information on the hydrologic system and its 
components, including any drainage systems previously 
constructed under chapter 106 sections 1 to 92, and existing and 
potential problems related thereto;  
     (c) State objectives and policies, including management 
principles, alternatives and modifications, water quality, and 
protection of natural characteristics;  
     (d) Set forth a management plan, including the hydrologic 
and water quality conditions that will be sought and significant 
opportunities for improvement;  
     (e) Describe the effect of the plan on existing drainage 
systems;  
     (f) Describe conflicts between the watershed plan and 
existing plans of local government units;  
     (g) Set forth an implementation program consistent with the 
management plan, which includes a capital improvement program 
and standards and schedules for amending the comprehensive plans 
and official controls of local government units in the watershed 
to bring about conformance with the watershed plan; and 
    (h) Set out a procedure for amending the plan. 
    Sec. 132.  [EFFECT OF CHANGES IN THIS ACT.] 
    The legislature intends this act to be a clarification and 
reorganization of the drainage law.  The changes that have been 
made are not intended to alter the drainage law and shall not be 
construed by a court or other authority to alter the meaning of 
the law.  
    Sec. 133.  [REPEALER.] 
    Minnesota Statutes 1984, sections 106.011; 106.015; 106.021;
106.031; 106.041; 106.051; 106.061; 106.071; 106.081; 106.091; 
106.101; 106.111; 106.121; 106.131; 106.141; 106.151; 106.161; 
106.171; 106.181; 106.191; 106.201; 106.211; 106.221; 106.231; 
106.241; 106.251; 106.261; 106.271; 106.281; 106.291; 106.301; 
106.311; 106.321; 106.331; 106.341; 106.351; 106.361; 106.371; 
106.381; 106.383; 106.391; 106.401; 106.411; 106.421; 106.431; 
106.441; 106.451; 106.461; 106.465; 106.471; 106.481; 106.491; 
106.501; 106.511; 106.521; 106.531; 106.541; 106.551; 106.561; 
106.571; 106.581; 106.591; 106.601; 106.611; 106.621; 106.631; 
106.641; 106.651; 106.652; 106.661; 106.671; 106.672; 106.673; 
and 109.38 are repealed. 
    Approved May 21, 1985