Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1990 

                         CHAPTER 391-S.F.No. 60 
           An act relating to water; recodifying, clarifying, and 
          relocating provisions relating to water law; amending 
          Minnesota Statutes 1988, sections 9.071; 16B.62, 
          subdivision 1; 18.191; 40A.13, subdivision 1; 41.65, 
          subdivision 3; 84.083, by adding subdivisions; 84.91, 
          subdivision 4; 84.911, subdivisions 5 and 6; 85.33, 
          subdivision 3; 86A.05, subdivision 10; 88.43, 
          subdivision 2; 93.335, subdivision 1; 94.343, 
          subdivision 4; 97A.015, subdivision 41; 97A.071, 
          subdivision 4; 97A.101, subdivision 2; 97A.211, 
          subdivisions 1 and 2; 116D.04, subdivision 1a; 
          116J.70, subdivision 2a; 144.95, subdivision 4; 
          161.28, subdivision 1; 163.17; 272.02, subdivision 6; 
          273.19, subdivision 5; 295.44, subdivision 1; 355.11, 
          subdivisions 4 and 5; 375.471; 383A.602, subdivisions 
          3 and 5; 383A.604, subdivision 1; 394.25, subdivision 
          2; 459.20; 465.20; 469.141, subdivision 4; 469.174, 
          subdivision 19; 471.345, subdivision 3; 471.591, 
          subdivision 1; 471.98, subdivision 2; 473.191, 
          subdivision 2; 500.24, subdivision 3b; 609.68; and 
          645.44, by adding a subdivision; Minnesota Statutes 
          1989 Supplement, sections 18B.07, subdivision 6; 
          84.95, subdivision 2; 357.021, subdivision 2; and 
          462.357, subdivision 1; Minnesota Statutes Second 1989 
          Supplement, sections 272.02, subdivision 1; and 
          444.075, subdivision 1a; Laws 1987, chapter 404, 
          section 22, subdivision 7; proposing coding for new 
          law in Minnesota Statutes, chapters 83A; 97C; and 
          383B; proposing coding for new law as Minnesota 
          Statutes, chapters 86B; 103A; 103B; 103C; 103D; 103E; 
          103F; and 103G; repealing Minnesota Statutes 1988, 
          sections 84.031; 84.032; 84.092; 84.158; 115.091 to 
          115.103; 116C.40; 465.18; 473.875; 473.876; 473.877, 
          as amended; 473.8771; 473.878; 473.8785; 473.879; 
          473.881; 473.882, as amended; and 473.883, as amended; 
          chapters 40, as amended; 104; 105, as amended; 106A; 
          110, as amended; 110B, as amended; 112, as amended; 
          114; 114B; 361, as amended; and 378; Minnesota 
          Statutes 1989 Supplement, section 84.0921; Laws 1967, 
          chapter 907; Laws 1969, chapter 272; Laws 1971, 
          chapter 355; Laws 1974, chapter 111; Laws 1977, 
          chapter 322; and Laws 1982, chapter 627. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 

                              CHAPTER 103A 

                      WATER POLICY AND INFORMATION 

                           GENERAL PROVISIONS 
    Section 1.  [103A.001] [EFFECT OF CHAPTER 103A ON WATER 
LAW.] 
    Chapters 103A, 103B, 103C, 103D, 103E, 103F, and 103G 
constitute the water law of this state and may be cited as the 
water law.  

                              WATER POLICY 
    Sec. 2.  [103A.201] [REGULATORY POLICY.] 
    To conserve and use water resources of the state in the 
best interests of its people, and to promote the public health, 
safety, and welfare, it is the policy of the state that:  
    (1) subject to existing rights, public waters are subject 
to the control of the state; 
    (2) the state, to the extent provided by law, shall control 
the appropriation and use of waters of the state; and 
    (3) the state shall control and supervise activity that 
changes or will change the course, current, or cross section of 
public waters, including the construction, reconstruction, 
repair, removal, abandonment, alteration, or the transfer of 
ownership of dams, reservoirs, control structures, and waterway 
obstructions in public waters.  [105.38] 
    Sec. 3.  [103A.202] [WETLAND POLICY.] 
    The legislature finds that it is in the public interest to 
preserve the wetlands of the state to conserve surface waters, 
maintain and improve water quality, preserve wildlife habitat, 
reduce runoff, provide for floodwater retention, reduce stream 
sedimentation, contribute to improved subsurface moisture, 
enhance the natural beauty of the landscape, and promote 
comprehensive and total water management planning.  [105.392 s. 
1] 
    Sec. 4.  [103A.203] [HYDROPOWER POLICY.] 
    The legislature finds that: 
    (1) the public health, safety, and welfare of the state are 
also promoted by the use of state waters to produce 
hydroelectric or hydromechanical power in a manner consistent 
with laws relating to dam construction, reconstruction, repair, 
and maintenance; and 
    (2) the leasing of existing dams and potential dam sites 
primarily for power generation is a valid public purpose.  
[105.482 s. 8] 
    Sec. 5.  [103A.205] [CONSERVATION POLICY FOR RAINWATER.] 
    It is the policy of the state to promote the retention and 
conservation of all water precipitated from the atmosphere in 
the areas where it falls, as far as practicable.  Except as 
otherwise expressly provided, all officers, departments, and 
other agencies of the state or political subdivisions having any 
authority or means for constructing, maintaining, or operating 
dams or other works or engaging in other projects or operations 
affecting precipitated water shall use the authority, as far as 
practicable, to effectuate the policy in this section.  [110.72] 
    Sec. 6.  [103A.206] [SOIL AND WATER CONSERVATION POLICY.] 
    Improper land use practices have caused serious wind and 
water erosion of the land of this state, the runoff of polluting 
materials, increased costs to maintain agricultural 
productivity, increased energy costs and increased flood 
damage.  Land occupiers have the responsibility to implement 
practices to correct these conditions and conserve the soil and 
water resources of the state.  It is the policy of the state to 
encourage land occupiers to conserve soil and water resources 
through the implementation of practices that effectively reduce 
or prevent erosion, sedimentation, siltation and agriculturally 
related pollution in order to preserve natural resources, insure 
continued soil productivity, control floods, prevent impairment 
of dams and reservoirs, assist in maintaining the navigability 
of rivers and harbors, preserve wildlife, protect the tax base, 
and protect public lands.  [40.02] 
    Sec. 7.  [103A.207] [FLOODPLAIN MANAGEMENT POLICY.] 
    (a) It is the policy of this state to reduce flood damages 
through floodplain management, stressing nonstructural measures 
such as floodplain zoning and flood proofing, and flood warning 
practices.  
    (b) It is the policy of this state: 
    (1) not to prohibit but to guide development of the 
floodplains consistent with legislative findings; 
    (2) to provide state coordination and assistance to local 
governmental units in floodplain management; 
    (3) to encourage local governmental units to adopt, 
enforce, and administer sound floodplain management ordinances; 
and 
    (4) to provide the commissioner of natural resources with 
authority necessary to carry out a floodplain management program 
for the state and to coordinate federal, state, and local 
floodplain management activities in this state.  [104.01 s. 3] 
    Sec. 8.  [103A.208] [SCENIC RIVER PROTECTION POLICY.] 
    The legislature finds that certain of Minnesota's rivers 
and their adjacent lands possess outstanding scenic, 
recreational, natural, historical, scientific and similar 
values.  It is in the interest of present and future generations 
to retain these values, and a policy of the state, and an 
authorized public purpose to preserve and protect these rivers.  
[104.32] 
    Sec. 9.  [103A.209] [MARGINAL, ERODIBLE LAND RETIREMENT 
POLICY.] 
    It is state policy to encourage the retirement of marginal, 
highly erodible land, particularly land adjacent to public 
waters and drainage systems, from crop production and to 
reestablish a cover of perennial vegetation.  [40.41] 
    Sec. 10.  [103A.211] [WATER LAW POLICY.] 
    The water law of this state is contained in many statutes 
that must be considered as a whole to systematically administer 
water policy for the public welfare.  Water law that seems 
contradictory as applied to a specific proceeding creates a need 
for a forum where the public interest conflicts involved can be 
presented and, by consideration of the whole body of water law, 
the controlling policy can be determined and apparent 
inconsistencies resolved.  [105.72] 

                 DETERMINATION OF WATER LAW AND POLICY 
    Sec. 11.  [103A.301] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 11 to 19.  [105.73 s. 1] 
     Subd. 2.  [AGENCY.] "Agency" means a state officer, board, 
commission, bureau, division, or agency, other than a court, 
exercising duty or authority under laws listed in section 12.  
[105.73 s. 4] 
    Subd.  3.  [BOARD.] "Board" means the board of water and 
soil resources.  [105.73 s. 2] 
    Subd.  4.  [COURT.] "Court" means the district court or a 
judge of the district court before whom the proceeding is 
pending.  [105.73 s. 5] 
    Subd. 5.  [PROCEEDING.] "Proceeding" means a procedure 
under any of the laws listed in section 12 that involves 
administrative discretion or duty.  [105.73 s. 3] 
    Subd. 6.  [QUESTION OF WATER POLICY.] "Question of water 
policy" means a question of water law and policy in which use, 
disposal, pollution, or conservation of water is a factor in a 
proceeding, including: 
    (1) determination of the governing policy of state law in 
the proceeding and resolution of apparent inconsistencies 
between different statutes; or 
    (2) the proper application of the policy of state law to 
facts in the proceeding if application is a matter of 
administrative discretion.  [105.73 s. 6] 
    Sec. 12.  [103A.305] [JURISDICTION.] 
    Sections 11 to 19 apply if the decision of an 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 
section 22; article 5, sections 2 and 3; article 7, sections 22; 
25; 27; 28; 29; 32, subdivisions 1 and 2; 33 to 36; 37, 
subdivisions 1, 10, 11, and 12; 38; 39; sections 84.57; 97A.135; 
115.04; or 115.05.  [105.74] 
    Sec. 13.  [103A.311] [PETITION FOR INTERVENTION.] 
    Subdivision 1.  [AUTHORITY.] The board may intervene in a 
proceeding if a petition is filed with the board for referral of 
a question of water policy involved in the proceeding.  [105.75 
s. 1] 
    Subd. 2.  [PETITION FOR INTERVENTION.] A petition for 
intervention must identify the proceeding in which it is made 
and state the grounds for referral in a general manner with 
sufficient detail to inform interested parties of the nature of 
the questions proposed to be presented to the board and the 
public importance of the questions.  [105.75 s. 1] 
    Subd. 3.  [PETITIONERS AND SIGNATURES.] (a) A petition for 
intervention may be made by: 
    (1) the applicant in the proceeding; 
    (2) a party to the proceeding; 
    (3) the governor; 
    (4) the agency; 
    (5) the commissioner or director of a division in the 
department of natural resources; 
    (6) the head of another state department or agency; 
    (7) a bureau or division of the federal government with a 
concern in the proceeding; 
    (8) an organization or group of persons with appropriate 
purpose related to the proceedings; or 
    (9) a person the board considers representative of a 
substantial segment of the state or peculiarly able to present 
evidence bearing on the public interest. 
    (b) The petition must be: 
    (1) signed and verified by the petitioner or an officer of 
the petitioner; or 
    (2) signed by the petitioner's attorney.  [105.75 s. 2] 
    Subd. 4.  [FILING PETITION.] The petition must be filed in 
duplicate, one copy with the board, the other with the agency.  
[105.75 s. 2] 
    Subd. 5.  [PERIOD FOR INTERVENTION BY BOARD.] The petition 
shall allow intervention in a proceeding by the board if the 
petition is filed after the proceeding is initiated and before 
the agency's order is made.  [105.75 s. 3] 
    Sec. 14.  [103A.315] [COURT REFERRALS.] 
    The court may refer a proceeding under its jurisdiction 
involving a law listed in section 12 to the board by a petition 
of the court directed to the board.  The referral may be made in 
original and appellate proceedings.  A party to a proceeding may 
ask the court to refer a matter to the board.  On receiving a 
petition for referral the board shall proceed under sections 11 
to 19.  [105.751] 
    Sec. 15.  [103A.321] [PETITION ABATES PROCEEDING UNTIL 
BOARD ACTS.] 
    A petition for intervention filed with the board abates a 
proceeding until there is a recommendation by the board or until 
60 days have passed after conclusion of hearing before the 
board, whichever is earlier, unless the agency makes a written 
finding stating reasons that the public interest requires the 
board to act immediately.  [105.76] 
    Sec. 16.  [103A.325] [BOARD DECISION TO INTERVENE.] 
    After receiving a petition, the board must decide whether 
the petition and the record made before the agency show an 
important question of water policy according to rules adopted by 
the board.  If the board decides that there is not an important 
question of water policy, the board may not intervene and the 
proceeding continues in the agency as though the petition had 
not been made.  If the board decides there is an important 
question of water policy and intervention in the public interest 
is justified, the board must issue a brief statement to the 
petitioner and the agency describing in general terms the 
questions of water policy it will consider.  [105.76] 
    Sec. 17.  [103A.331] [HEARING, DETERMINATION.] 
    Subdivision 1.  [HEARING.] After a petition is filed the 
board must proceed expeditiously to hear, determine, and make 
its recommendations on the questions it has consented to 
consider.  The hearings must be conducted to fully inform the 
board about all aspects of the public interest in the questions 
of water policy to be determined to make an impartial, 
scientific, and fully considered judgment. 
    Subd.  2.  [DETERMINATION.] (a) The recommendation of the 
board is the board's decision on the question of water policy 
considered by it. 
    (b) The ultimate question to which the board's 
recommendation is directed is the proper course of action to be 
followed by the agency in the proceeding in relation to 
questions of water policy considered by the board. 
    (c) The decision of the board must be in the form of a 
written recommendation to the agency.  The decision must state 
the controlling facts in sufficient detail to inform the 
parties, the agency, and a reviewing court of the basis and 
reason for the decision.  [105.77] 
    Subd. 3.  [RECOMMENDATION AS EVIDENCE.] In the proceeding 
and upon judicial review, the recommendation of the board is 
evidence.  A certified copy is competent evidence of the 
recommendation of the board.  [105.77] 
    Sec. 18.  [103A.335] [CONSENT, NOTICE AND PROCEDURE.] 
    Subdivision 1.  [NOTICE.] A consent, notice, or 
recommendation made by the board must be filed with the agency.  
The filing is notice of the board's action.  The board's rules 
may provide for a notice, in addition to filing by mail, 
posting, publication, or otherwise, to inform parties and 
interested persons of the board's actions.  [105.78] 
    Subd. 2.  [SUBPOENA.] (a) To implement sections 11 to 19, 
the chair of the board or a board member may subpoena witnesses, 
administer oaths, and compel the production of books, records, 
and other evidence. 
    (b) Disobedience of a subpoena, refusal to be sworn, or 
refusal to answer as a witness, is punishable as a contempt of 
the district court.  The board or a board member must file a 
complaint of the disobedience with the district court of the 
county where the disobedience occurred.  
    (c) Witnesses receive the same fees and mileage as in civil 
actions. 
    (d) Persons must be sworn before testifying and the right 
to examine or cross-examine is the same as in civil actions.  
[105.78] 
    Subd. 3.  [HEARINGS.] Hearings must be public, conducted by 
the board or an authorized board member, and affected persons 
have the opportunity to be heard.  The board must provide a 
stenographer to take the testimony, and proceedings at the 
hearings must be recorded and preserved.  Hearings must be 
conducted as much as practicable in the same way as civil 
actions.  [105.78] 
    Subd. 4.  [POSITION OF STATE AGENCIES.] State agencies may 
adopt opposite positions on the matter before the board when 
full advocacy will assist in disclosing the public interest. 
[105.78] 
    Sec. 19.  [103A.341] [FINDINGS BY BOARD.] 
    Within 60 days of the close of a hearing the board must 
make findings and recommendations based solely on the evidence 
presented at the public hearing.  [105.79] 

                            WATER INFORMATION
    Sec. 20.  [103A.401] [STATEWIDE WATER INFORMATION SYSTEM.] 
    The commissioner of natural resources, in cooperation with 
other state agencies including the Minnesota geologic survey, 
shall establish and maintain a statewide water information 
system to gather, process, and distribute information on the 
availability, distribution, quality, and use of waters of the 
state.  Local, regional, and state governmental units and their 
officers and employees shall cooperate with the commissioner to 
implement and maintain the statewide water information system.  
[105.39 s. 6] 
    Sec. 21.  [103A.405] [DIRECTOR'S APPROVAL FOR FEDERAL WATER 
DATA AGREEMENTS.] 
    A contract or agreement may not be made by a department or 
agency of the state or a municipality, with the United States or 
an agency or department of the United States, for the collection 
of basic data pertaining to surface water or groundwater of the 
state without obtaining written approval of the director.  
[105.40 s. 10] 
    Sec. 22.  [103A.411] [PUMPING TEST AND DATA ACQUISITION 
TRAINING PROGRAMS.] 
    The commissioner shall set up a statewide training program 
to provide training in the conduct of pumping tests and data 
acquisition programs.  [105.41 s. 1] 

                               ARTICLE 2 

                              CHAPTER 103B 

               WATER PLANNING AND PROJECT IMPLEMENTATION 
    Section 1.  [103B.001] [EFFECT OF CHAPTER 103B ON WATER 
LAW.] 
    Chapters 103A, 103B, 103C, 103D, 103E, 103F, and 103G 
constitute the water law of this state and may be cited as the 
water law.  

                   BOARD OF WATER AND SOIL RESOURCES 
    Sec. 2.  [103B.101] [BOARD OF WATER AND SOIL RESOURCES.] 
    Subdivision 1.  [MEMBERSHIP.] The board of water and soil 
resources is composed of 12 voting members knowledgeable of 
water and soil problems and conditions within the state and four 
ex officio nonvoting members.  [110B.35 s. 1] 
    Subd. 2.  [VOTING MEMBERS.] (a) The voting members are: 
    (1) three county commissioners; 
    (2) three soil and water conservation district supervisors; 
    (3) three watershed district or watershed management 
organization representatives; and 
    (4) three citizens who are not employed by, or the 
appointed or elected officials of, a governmental office, board, 
or agency. 
    (b) Voting members must be distributed across the state 
with at least three members but not more than five members from 
the metropolitan area, as defined by section 473.121, 
subdivision 2; and one from each of the current soil and water 
conservation administrative regions.  
    (c) Voting members are appointed by the governor.  In 
making the appointments, the governor may consider persons 
recommended by the association of Minnesota counties, the 
Minnesota association of soil and water conservation districts, 
and the Minnesota association of watershed districts.  The list 
submitted by an association must contain at least three nominees 
for each position to be filled. 
    (d) The membership terms, compensation, removal of members 
and filling of vacancies on the board for voting members are as 
provided in section 15.0575.  [110B.35 s. 2] 
    Subd. 3.  [EX OFFICIO NONVOTING MEMBERS.] The following 
shall each provide one nonvoting member to the board: 
    (1) department of agriculture; 
    (2) department of health; 
    (3) department of natural resources; 
    (4) pollution control agency; and 
    (5) University of Minnesota.  [110B.35 s. 3] 
    Subd. 4.  [EMPLOYEES.] The board may employ an executive 
director in the unclassified service and other permanent and 
temporary employees in accordance with chapter 43A.  The board 
may prescribe the powers and duties of its officers and 
employees and may authorize its employees and members of the 
board to act on behalf of the board.  [110B.35 s. 4] 
    Subd. 5.  [OFFICERS.] The governor shall appoint a chair 
from among the voting members of the board with the advice and 
consent of the senate.  The board shall elect a vice-chair and 
any other officers that it considers necessary from its 
membership.  [110B.35. s. 5] 
    Subd. 6.  [QUORUM.] A majority of the board is a quorum.  
[110B.35 s. 5] 
    Subd. 7.  [HEARINGS AND RULEMAKING.] The board may hold 
public hearings and adopt rules necessary to execute its 
duties.  [110B.35 s. 5] 
    Subd. 8.  [ADMINISTRATIVE SERVICES.] The commissioner of 
administration shall provide and make available within the 
department of agriculture suitable and adequate office 
facilities and space for the board.  The commissioner of 
agriculture shall provide and make available administrative 
services required by the board in the administration of its 
functions.  [110B.35 s. 6] 
    Subd. 9.  [DUTIES.] In addition to the powers and duties 
prescribed elsewhere, the board shall: 
    (1) coordinate the water and soil resources planning 
activities of counties, soil and water conservation districts, 
watershed districts, watershed management organizations, and any 
other local units of government through its various authorities 
for approval of local plans, administration of state grants, and 
by other means as may be appropriate; 
    (2) facilitate communication and coordination among state 
agencies in cooperation with the environmental quality board, 
and between state and local units of government, in order to 
make the expertise and resources of state agencies involved in 
water and soil resources management available to the local units 
of government to the greatest extent possible; 
    (3) coordinate state and local interests with respect to 
the study in southwestern Minnesota under United States Code, 
title 16, section 1009; 
    (4) develop information and education programs designed to 
increase awareness of local water and soil resources problems 
and awareness of opportunities for local government involvement 
in preventing or solving them; 
    (5) provide a forum for the discussion of local issues and 
opportunities relating to water and soil resources management; 
    (6) adopt an annual budget and work program that integrate 
the various functions and responsibilities assigned to it by 
law; and 
    (7) report to the governor and the legislature by October 
15 of each even-numbered year with an assessment of board 
programs and recommendations for any program changes and board 
membership changes necessary to improve state and local efforts 
in water and soil resources management.  [110B.35 s. 7] 
    Subd. 10.  [COMMITTEE FOR DISPUTE RESOLUTION.] A committee 
of the board is established to hear and resolve disputes, 
appeals, and interventions under sections 11, subdivision 9, and 
26; article 1, sections 11 to 19; and article 4, section 40.  
The committee consists of the three citizen members specified in 
subdivision 2, paragraph (a), clause (4), and two additional 
members appointed by the board chair.  [110B.35 s. 8] 
    Subd. 11.  [ENGINEERING WORK AND APPEARANCES AT HEARINGS BY 
DIRECTOR.] The director of the division of waters of the 
department of natural resources shall perform engineering work 
requested by the board of water and soil resources and shall 
appear in all hearings and proceedings before the board of water 
and soil resources affecting waters within the state.  [105.40 
s. 7] 

                   STATEWIDE WATER RESOURCE PLANNING 
    Sec. 3.  [103B.151] [COORDINATION OF WATER RESOURCE 
PLANNING.] 
    Subdivision 1.  [WATER PLANNING.] The environmental quality 
board shall:  
    (1) coordinate public water resource management and 
regulation activities among the state agencies having 
jurisdiction in the area; 
    (2) initiate, coordinate, and continue to develop 
comprehensive long-range water resources planning in furtherance 
of the plan adopted by the water planning board entitled "A 
Framework for a Water and Related Land Resources Strategy for 
Minnesota, 1979" including a new plan and strategy by November 
15, 1990, and each five-year interval afterwards; 
    (3) coordinate water planning activities of local, 
regional, and federal bodies with state water planning and 
integrate these plans with state strategies; 
    (4) coordinate development of state water policy 
recommendations and priorities, and a recommended program for 
funding identified needs, including priorities for implementing 
the state water resources monitoring plan; 
    (5) in cooperation with state agencies participating in the 
monitoring of water resources, develop a plan for monitoring the 
state's water resources; 
    (6) administer federal water resources planning with 
multiagency interests; 
    (7) ensure that groundwater quality monitoring and related 
data is provided and integrated into the Minnesota land 
management information system according to published data 
compatibility guidelines.  Costs of integrating the data in 
accordance with data compatibility standards must be borne by 
the agency generating the data; 
    (8) identify water resources information and education 
needs, priorities, and goals and prepare an implementation plan 
to guide state activities relating to water resources 
information and education; 
    (9) coordinate the development and evaluation of water 
information and education materials and resources; and 
    (10) coordinate the dissemination of water information and 
education through existing delivery systems.  [116C.41 s. 1] 
    Subd. 2.  [GOVERNOR'S REPRESENTATIVE.] The environmental 
quality board chair shall represent the governor on interstate 
water resources organizations.  [116C.41 s. 3] 
    Subd. 3.  [CONSISTENCY OF STATE INFORMATION ACTIVITIES.] 
State agency information and education activities must be 
consistent with the implementation plan required under 
subdivision 1, clause (8). 
    Sec. 4.  [103B.155] [STATE WATER AND RELATED LAND RESOURCE 
PLAN.] 
    The commissioner of natural resources, in cooperation with 
other state and federal agencies, regional development 
commissions, the metropolitan council, local governmental units, 
and citizens, shall prepare a statewide framework and assessment 
water and related land resources plan for presentation to the 
legislature by November 15, 1975, for its review and approval or 
disapproval.  This plan must relate each of the programs of the 
department of natural resources for specific aspects of water 
management to the others.  The statewide plan must include: 
    (1) regulation of improvements and land development by 
abutting landowners of the beds, banks, and shores of lakes, 
streams, watercourses, and marshes by permit or otherwise to 
preserve them for beneficial use; 
    (2) regulation of construction of improvements on and 
prevention of encroachments in the flood plains of the rivers, 
streams, lakes, and marshes of the state; 
    (3) reclamation or filling of wet and overflowed lands; 
    (4) repair, improvement, relocation, modification or 
consolidation in whole or in part of previously established 
public drainage systems within the state; 
    (5) preservation of wetland areas; 
    (6) management of game and fish resources as related to 
water resources; 
    (7) control of water weeds; 
    (8) control or alleviation of damages by flood waters; 
    (9) alteration of stream channels for conveyance of surface 
waters, navigation, and any other public purposes; 
    (10) diversion or changing of watercourses in whole or in 
part; 
    (11) regulation of the flow of streams and conservation of 
their waters; 
    (12) regulation of lake water levels; 
    (13) maintenance of water supply for municipal, domestic, 
industrial, recreational, agricultural, aesthetic, wildlife, 
fishery, or other public use; 
    (14) sanitation and public health and regulation of uses of 
streams, ditches, or watercourses to dispose of waste and 
maintain water quality; 
    (15) preventive or remedial measures to control or 
alleviate land and soil erosion and siltation of affected 
watercourses or bodies of water; and 
    (16) regulation of uses of water surfaces.  [105.403] 

                 METROPOLITAN SURFACE WATER MANAGEMENT 
    Sec. 5.  [103B.201] [METROPOLITAN WATER MANAGEMENT PROGRAM 
PURPOSE.] 
    The purpose of the water management programs required by 
sections 6 to 16 is to protect, preserve and use natural surface 
and ground water storage and retention systems in order to: 
    (1) reduce to the greatest practical extent the public 
capital expenditures necessary to control excessive volumes and 
rates of runoff; 
    (2) protect and improve surface and ground water quality; 
    (3) prevent flooding and erosion from surface flows; 
    (4) promote groundwater recharge; 
    (5) protect and enhance fish and wildlife habitat and water 
recreational facilities; and 
    (6) secure the other benefits associated with the proper 
management of surface and ground water.  [473.875] 
    Sec. 6.  [103B.205] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 7 to 16.  [473.876 s. 1] 
    Subd. 2.  [BOARD.] "Board" means the board of water and 
soil resources unless the context indicates otherwise.  [473.876 
s. 1a] 
    Subd. 3.  [CAPITAL IMPROVEMENT PROGRAM.] "Capital 
improvement program" means an itemized program for at least a 
five year prospective period, and any amendments to it, subject 
to at least biennial review, setting forth the schedule, timing, 
and details of specific contemplated capital improvements by 
year, together with their estimated cost, the need for each 
improvement, financial sources, and the financial effect that 
the improvements will have on the local government unit or 
watershed management organization.  [473.876 s. 2] 
    Subd. 4.  [GROUNDWATER PLAN.] "Groundwater plan" means a 
county plan adopted under section 16.  [473.876 s. 2a] 
    Subd. 5.  [GROUNDWATER SYSTEM.] "Groundwater system" means 
one of the 14 principal aquifers of the state as defined by the 
United States Geological Survey in the Water-Resources 
Investigations 81-51, entitled "Designation of Principal Water 
Supply Aquifers in Minnesota" (August 1981), and its revisions.  
[473.876 s. 2b] 
    Subd. 6.  [LOCAL COMPREHENSIVE PLAN.] "Local comprehensive 
plan" has the meaning given it in section 473.852, subdivision 
5.  [473.876 s. 3] 
    Subd. 7.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
or "local unit" has the meaning given it in section 473.852.  
[473.876 s. 4] 
     Subd. 8.  [METROPOLITAN AREA.] "Metropolitan area" has the 
meaning given in section 473.121, subdivision 2. 
    Subd. 9.  [MINOR WATERSHED UNITS.] "Minor watershed units" 
means the drainage areas identified and delineated as such 
pursuant to Laws 1977, chapter 455, section 33, subdivision 
7(a). [473.876 s. 5] 
    Subd. 10.  [OFFICIAL CONTROLS.] "Official controls" has the 
meaning given it in section 473.852.  [473.876 s. 6] 
    Subd. 11.  [WATERSHED.] "Watershed" means a drainage area 
having boundaries which are substantially coterminous with those 
of an aggregation of contiguous minor watershed units possessing 
similar drainage patterns and which cross the borders of two or 
more local government units.  [473.876 s. 7] 
    Subd. 12.  [WATERSHED DISTRICT.] "Watershed district" means 
a district established under chapter 103D.  [473.876 s. 8] 
    Subd. 13.  [WATERSHED MANAGEMENT ORGANIZATION.] "Watershed 
management organization" or "organization" means a watershed 
district wholly within the metropolitan area or a joint powers 
entity established wholly or partly within the metropolitan area 
by special law or by agreement that performs some or all of the 
functions of a watershed district for a watershed and that has 
the characteristics and the authority specified under section 
7.  Lake improvement or conservation districts are not watershed 
management organizations.  [473.876 s. 9] 
    Sec. 7.  [103B.211] [JOINT POWERS WATERSHED MANAGEMENT 
ORGANIZATION.] 
    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 6 to 16, may provide, 
in addition to other provisions authorized by section 471.59, 
for a joint board having:  
    (1) the authority to prepare, adopt, and implement a plan 
for the watershed meeting the requirements of section 11; 
    (2) the authority to review and approve local water 
management plans as provided in section 12; 
    (3) the authority of a watershed district under chapter 
103D to regulate the use and development of land in the 
watershed when one or more of the following conditions exists:  
     (i) 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 12 or has not adopted the 
implementation program described in the plan; 
    (ii) 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; or 
    (iii) the local government unit has authorized the 
organization to require permits for the use and development of 
land; 
    (4) the authority of a watershed district under article 4, 
section 49, 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 chapters 103D, 103E, or sections 6 to 16, and that 
proceedings of the board with respect to the systems must be in 
conformance with the watershed plan adopted under section 11; 
and 
    (5) other powers necessary to exercise the authority under 
clauses (1) to (3), including the power to enter into contracts 
for the performance of functions with governmental units or 
persons.  [473.877 s. 1] 
    Subd. 2.  [REVIEW OF WATERSHED BOUNDARIES.] Before 
commencing planning under section 11, a watershed management 
organization established pursuant to section 471.59 and this 
section shall submit a map delineating the boundaries of the 
watershed to the board of water and soil resources for review 
and comment on the conformance of the boundaries with the 
requirements of sections 6 to 16.  The board shall have 60 days 
to comment.  [473.877 s. 2] 
    Subd. 3.  [JURISDICTION OVER NONMEMBERS.] (a) A watershed 
management organization established by agreement pursuant to 
subdivision 1 may exercise the authority provided in the 
agreement throughout the watershed delineated, including 
territory in statutory and home rule charter cities and towns 
that are not members of the organization, if the cities and 
towns that are not members consent to the exercise of authority 
within their jurisdictions and if the membership of the 
organization includes:  
    (1) the county or counties having jurisdiction over all of 
the territory of the watershed that is within the cities and 
towns that are not members of the organization; and 
    (2) either cities and towns having jurisdiction over at 
least 50 percent of the land area of the watershed and 
comprising at least three-quarters of all of the cities and 
towns having territory in the watershed, or cities and towns 
having jurisdiction over at least 75 percent of the land area of 
the watershed.  
    (b) The county or counties identified in paragraph (a), 
clause (1), are responsible for watershed management activities 
and may exercise authority under sections 6 to 16 in and for 
consenting cities and towns that are not members of the 
organization.  [473.877 s. 3] 
     Subd. 4.  [APPROPRIATIONS FROM SMALL WATERCOURSES.] (a) 
This subdivision applies in Hennepin and Ramsey counties to the 
following public waters:  
    (1) a public water basin or wetland wholly within the 
county that is less than 500 acres; or 
    (2) a protected watercourse that has a drainage area of 
less than 50 square miles.  
    (b) An appropriation of water that is below the minimum 
established in article 7, section 27, subdivision 4, for a 
nonessential use, as defined under article 7, section 31, is 
prohibited unless a permit is obtained from the watershed 
district or watershed management organization having 
jurisdiction over the public water basin, wetland, or 
watercourse.  The watershed district or watershed management 
organization may impose a fee to cover the cost of issuing the 
permit.  This subdivision must be enforced by the home rule 
charter or statutory city where the appropriation occurs.  
Violation of this subdivision is a petty misdemeanor, except 
that a second violation within a year is a misdemeanor.  
Affected cities shall mail notice of this law to affected 
riparian landowners.  [473.877 s. 4] 
    Subd. 5.  [APPROPRIATIONS FROM SMALL WATERCOURSES.] This 
subdivision applies in Hennepin and Ramsey counties to the 
following public waters:  
    (1) a public water basin or wetland wholly within the 
county that is less than 500 acres; or 
    (2) a protected watercourse that has a drainage area of 
less than 50 square miles.  
    An appropriation of water that is below the minimum 
established in article 7, section 27, subdivision 4, for a 
nonessential use, as defined in article 7, section 31, is 
prohibited unless a permit is obtained from the watershed 
district or watershed management organization having 
jurisdiction over the public water basin, wetland, or 
watercourse.  The watershed district or watershed management 
organization may impose a fee to cover the cost of issuing the 
permit.  This subdivision must be enforced by the home rule 
charter or statutory city where the appropriation occurs.  
Violation of this subdivision is a petty misdemeanor, except 
that a second violation within a year is a misdemeanor.  
Affected cities shall mail notice of this law to adjoining 
landowners.  [473.877 s. 5] 
    Sec. 8.  [103B.215] [BOUNDARY CHANGE OF WATERSHED 
DISTRICTS.] 
    Subdivision 1.  [PROCEDURE.] The boundaries of a watershed 
district wholly within the metropolitan area may be changed 
pursuant to this section or chapter 103D.  [473.8771 s. 1] 
     Subd. 2.  [PETITION.] (a) The governing board of a 
watershed management organization may petition the board of 
water and soil resources for an order changing the boundaries of 
a watershed district wholly within the metropolitan area, by 
adding new territory to the district or by transferring 
territory that is within the district to the jurisdiction of 
another watershed management organization.  
     (b) The petition must:  
    (1) describe with particularity the change in boundary 
requested, the territory affected, and the reasons for the 
change; 
    (2) show that the change is consistent with the purposes 
and requirements of sections 6 to 16; and 
    (3) identify property subject to section 10.  
    (c) The petition must be accompanied by a written statement 
of concurrence in the petition from the governing body of each 
statutory or home rule charter city and town and each watershed 
management organization having jurisdiction over the territory 
proposed to be added or transferred.  [473.8771 s. 1] 
     Subd. 3.  [NOTICE.] (a) Upon the filing of a sufficient 
petition, the board shall give notice of the filing of the 
petition by publication once each week for two successive weeks 
in a legal newspaper in each county affected and by mail to the 
county auditor of each county affected and to the chief official 
of each statutory or home rule charter city and township 
affected.  
     (b) The notice must describe the action proposed by the 
petition and invite written comments on the petition for 
consideration by the board.  The notice must announce that any 
person who objects to the action proposed in the petition may 
submit a written request for hearing to the board within 20 days 
of the last publication of the notice of the filing of the 
petition, and that if no timely request for hearing is received 
the board will make a decision on the petition pursuant to this 
subdivision without conducting the public hearing required under 
chapter 103D.  [473.8771 s. 1] 
    Subd. 4.  [DECISION ON PETITION.] (a) If a timely request 
for hearing is not received, the board shall make a decision on 
the petition without a hearing within 30 days after the last 
publication of the notice.  
    (b) If one or more timely requests for hearing are received 
the board shall hold a hearing on the petition and shall follow 
the procedures in chapter 103D regarding notice and conduct of 
hearings.  
     (c) After completing the procedures required by this 
subdivision, the board shall, by its findings and order, make 
the boundary change requested if the board determines that:  
    (1) the governing body of each statutory or home rule 
charter city and town and each watershed management organization 
having jurisdiction over the territory proposed to be added or 
transferred concurs in the petition; 
    (2) the change is consistent with the purposes and 
requirements of sections 6 to 16; and 
    (3) the change can be accomplished in conformance with 
section 10. 
    (d) The board shall file a certified copy of the findings 
and order with the secretary of state.  The order making the 
change must conform to section 10.  The order making the change 
may amend the order prescribing the distribution of managers of 
the district.  [473.8771 s. 1] 
    Sec. 9.  [103B.221] [TERMINATION OF WATERSHED DISTRICT.] 
     Subdivision 1.  [PROCEDURE.] A watershed district wholly 
within the metropolitan area may be terminated pursuant to this 
section or chapter 103D.  [473.8771 s. 2] 
    Subd. 2.  [PETITION.] Proceedings for termination under 
this subdivision must be initiated by a petition to the board of 
water and soil resources filed jointly by the governing bodies 
of all statutory and home rule charter cities and towns having 
jurisdiction over territory within the watershed.  [473.8771 s. 
2] 
    Subd. 3.  [HEARING.] Upon the filing of a sufficient 
petition, the board shall hold a hearing in accordance with the 
procedures prescribed in chapter 103D, to take testimony on the 
determinations required to be made by the board.  [473.8771 s. 
2] 
     Subd. 4.  [DETERMINATION AND ORDER.] (a) Following the 
hearing, the board shall, by its findings and order, terminate 
the district as requested if the board determines:  
    (1) that the local units of government having jurisdiction 
over territory within the watershed have formed a joint powers 
organization for the watershed pursuant to section 7; 
    (2) that upon termination of the district the members of 
the joint powers organization, jointly or severally, are willing 
and able to assume ownership of the district's assets and the 
responsibility for managing and maintaining the district's 
projects as necessary to accomplish the purposes of sections 6 
to 16 and to implement the watershed plan of the joint powers 
organization to be developed pursuant to section 11; and 
    (3) that the termination can be accomplished in conformance 
with section 10. 
    (b) The board shall file a certified copy of the findings 
and order with the secretary of state.  The order terminating 
the district must transfer the assets of the district to the 
joint powers organization or its members.  The order must 
conform to section 10.  [473.8771 s. 2] 
    Sec. 10.  [103B.225] [BOUNDARY CHANGE AND TERMINATION 
EFFECT ON BENEFITS AND DAMAGES.] 
    (a) The addition or transfer of property or termination of 
a district under sections 8 and 9 must not affect the benefits 
or damages for any improvement previously constructed by the 
district having jurisdiction over the property before the 
board's order takes effect.  The property affected is and 
remains liable for its proper share of any outstanding 
indebtedness of the watershed district applying to the property 
before the board's order, and levies and assessments for the 
indebtedness continue in force until the debt is fully paid.  
     (b) In order to satisfy the requirements of this section, 
the board may prescribe conditions on the boundary change or 
termination or may prescribe a later effective date for the 
termination of specified powers of a watershed district.  
[473.8771 s. 3] 
    Sec. 11.  [103B.231] [WATERSHED PLANS.] 
    Subdivision 1.  [REQUIREMENT.] A watershed management plan 
is required for watersheds comprising all minor watershed units 
within the metropolitan area.  For the purposes of this section 
a minor watershed unit is considered within the metropolitan 
area if more than 90 percent of its area is within the 
metropolitan area.  The watershed management plan must be 
prepared, adopted, and implemented in accordance with the 
requirements of sections 6 to 16.  [473.878 s. 1] 
    Subd. 2.  [OPTIONAL PARTICIPATION.] Local government units, 
within or outside of the metropolitan area, having territory 
that is not subject to the requirements of this section but that 
is within a watershed part of which is subject to the 
requirements of this section, may enter into an agreement under 
section 7.  A local government unit that enters into an 
agreement under this subdivision has the duties imposed and the 
authority granted in sections 6 to 16.  [473.878 s. 1a] 
    Subd. 3.  [RESPONSIBLE UNITS.] (a) Where a watershed 
management organization exists, the plan for the watershed must 
be prepared and adopted by the organization.  
     (b) If a watershed management organization is not 
established by July 1, 1985, for any minor watershed unit 
located wholly outside of Hennepin and Ramsey counties, the 
county or counties containing the watershed unit shall prepare, 
adopt and implement the watershed plan and for this purpose the 
county or counties have the planning, review, permitting, and 
financing authority of a watershed management organization 
specified in sections 7 to 16.  
     (c) If a watershed management organization is not 
established by July 1, 1985, for any minor watershed unit within 
the metropolitan area and wholly or partly within Hennepin or 
Ramsey counties, the county or counties containing the watershed 
unit shall petition for the establishment of a watershed 
district under chapter 103D provided, however, that a district 
established pursuant to a petition:  
     (1) may not cross a primary river or a river forming the 
boundary between a metropolitan county and a county outside the 
metropolitan area; 
     (2) must have boundaries that are based upon negotiations 
among all local government units that may have territory within 
the district and adjacent watersheds; and 
     (3) may not cross county boundaries to include territory 
whose distinguishing characteristic is multiple drainage points 
into a primary river.  
     (d) A watershed management organization may request a 
county to prepare all or part of a plan.  
     (e) A county may delegate the preparation of all or part of 
a plan to the county soil and water conservation district.  
     (f) Upon request of a statutory or home rule charter city 
or town, a county may delegate the preparation of all or part of 
a plan to the city or town.  [473.878 s. 2] 
    Subd. 4.  [GENERAL STANDARDS.] (a) The watershed management 
plan must extend through the year 1990 or any later year that is 
evenly divisible by five. 
    (b) The plan must be updated before the expiration of the 
period covered by the plan.  The plan must be reviewed for 
consistency with an adopted county groundwater plan, and revised 
as necessary, whenever the watershed plan undergoes substantial 
revision or updating.  In counties that adopt or amend 
groundwater plans within five years following August 1, 1987, 
watershed plans must be reviewed for consistency with the county 
groundwater plan, and revised as necessary, not later than six 
years following August 1, 1987.  In counties that adopt or amend 
groundwater plans after five years following August 1, 1987, 
watershed plans must be reviewed for consistency with the county 
groundwater plan, and revised as necessary, not later than one 
year following the adoption or amendment of the groundwater 
plan.  Upon the request of a watershed management organization, 
the county shall provide a written statement that: 
     (1) identifies any substantial inconsistencies between the 
watershed plan and the groundwater plan and any substantial 
adverse effects of the watershed plan on the groundwater plan; 
and 
    (2) evaluates, estimates the cost of, and recommends 
alternatives for amending the watershed plan to rectify any 
substantial inconsistencies and adverse effects.  
    (c) The plan shall contain the elements required by 
subdivision 6.  Each element shall be set out in the degree of 
detail and prescription necessary to accomplish the purposes of 
sections 6 to 16, considering the character of existing and 
anticipated physical and hydrogeologic conditions, land use, and 
development and the severity of existing and anticipated water 
management problems in the watershed. 
    (d) The plan shall be prepared and submitted for review 
under subdivision 7 not later than December 31, 1986. 
    (e) Existing plans of a watershed management organization 
shall remain in force and effect until amended or superseded by 
plans adopted under sections 6 to 16.  Existing or amended plans 
of a watershed management organization which meet the 
requirements of sections 6 to 16 may be submitted for review 
under subdivision 7.  [473.878 s. 3] 
    Subd. 5.  [ADDITIONAL ORGANIZATIONS.] (a) Any portion of 
the metropolitan area that is not in a watershed management 
organization by July 1, 1985, as required by subdivision 3, has 
until July 1, 1986, to form an organization.  
     (b) Notwithstanding the requirements of subdivision 4, a 
watershed management organization formed under this subdivision 
has until December 31, 1987, to prepare and submit a plan for 
review.  [473.878 s. 3a] 
    Subd. 6.  [CONTENTS.] The plan shall:  
    (1) 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; 
    (2) present information on the hydrologic system and its 
components, including drainage systems previously constructed 
under chapter 103E, and existing and potential problems related 
thereto; 
    (3) state objectives and policies, including management 
principles, alternatives and modifications, water quality, and 
protection of natural characteristics; 
    (4) set forth a management plan, including the hydrologic 
and water quality conditions that will be sought and significant 
opportunities for improvement; 
    (5) describe the effect of the plan on existing drainage 
systems; 
    (6) describe conflicts between the watershed plan and 
existing plans of local government units; 
    (7) 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 
    (8) set out a procedure for amending the plan.  [473.878 s. 
4] 
    Subd. 7.  [LOCAL REVIEW.] (a) Upon completion of the plan 
but before final adoption by the organization, the organization 
must submit the plan for review and comment to all counties, 
soil and water conservation districts, towns, and statutory and 
home rule charter cities having territory within the watershed.  
A local government unit that expects that substantial amendment 
of its local comprehensive plan will be necessary to bring local 
water management into conformance with the watershed plan must 
describe as specifically as possible, within its comments, the 
amendments to the local plan that it expects will be necessary.  
If the county has a groundwater plan, the county must review and 
comment on the consistency of the watershed plan with the county 
groundwater plan.  Differences among local governmental agencies 
regarding the plan must be mediated.  
    (b) Sixty days after the submission to local government 
units for comment, the organization shall submit the plan, any 
comments received, and any appropriate amendments to the plan, 
to the board of the county or counties having territory within 
the watershed.  The county shall approve or disapprove projects 
in the capital improvement program which may require the 
provision of county funds pursuant to section 15 or article 4, 
section 68, subdivision 2.  The county has 60 days to complete 
its review of the capital improvement program.  If the county 
fails to complete its review within the prescribed period, 
unless an extension is agreed to by the organization the program 
shall be deemed approved.  If the watershed extends into more 
than one county and one or more counties disapprove of all or 
part of a capital improvement program while the other county or 
counties approve, the program shall be submitted to the board of 
water and soil resources for review pursuant to subdivision 9.  
[473.878 s. 5] 
    Subd. 8.  [REVIEW BY METROPOLITAN COUNCIL.] After 
completion of the review under subdivision 7, the plan and all 
comments received shall be submitted to the metropolitan council 
for review.  Notwithstanding any provision to the contrary in 
article 4, sections 30 and 31, and section 473.165, the council 
shall review the plan in the same manner and with the same 
authority and effect as provided for the council's review of the 
comprehensive plans of local government units under section 
473.175.  The council shall comment on the apparent conformity 
with metropolitan system plans of any anticipated amendments to 
local comprehensive plans.  The council may mediate and attempt 
to resolve differences among local governmental agencies 
regarding the plan. [473.878 s. 6] 
    Subd. 9.  [REVIEW BY STATE AGENCIES.] After completion of 
the review under subdivision 8, the plan and all comments 
received shall be submitted to the commissioners of natural 
resources, health, and the pollution control agency for review 
and comment on the consistency of the plan with state laws and 
rules relating to water and related land resources, and to the 
board of water and soil resources for review under article 4, 
sections 30 and 31.  Except as otherwise provided in this 
subdivision, the board of water and soil resources shall review 
the plan as provided in article 4, sections 30 and 31.  The 
board shall review the plan for conformance with the 
requirements of chapter 103D and sections 6 to 16.  The board 
shall not prescribe a plan, but may disapprove all or parts of a 
plan which it determines is not in conformance with the 
requirements of chapter 103D and sections 6 to 16.  If the 
capital improvement program is the subject of a dispute between 
counties, the board of water and soil resources shall make a 
final decision on the issue.  The decision shall be binding on 
the organization and the counties involved.  [473.878 s. 7] 
    Subd. 10.  [ADOPTION AND IMPLEMENTATION.] The organization 
shall adopt and implement its plan within 120 days after 
compliance with the provisions of subdivision 9 and approval of 
the plan by the board of water and soil resources.  A watershed 
district may implement its approved plan and approved capital 
improvement program by resolution of the majority of the board 
of managers and without respect to the provisions of chapter 
103D requiring the managers to wait upon petitions for projects, 
to submit projects for review by the board of water and soil 
resources, and to limit the cost and purposes of projects.  
[473.878 s. 8] 
    Subd. 11.  [AMENDMENTS.] To the extent and in the manner 
required by the adopted plan, all amendments to the adopted plan 
shall be submitted to the towns, cities, county, and other 
agencies for review in accordance with the provisions of 
subdivisions 7, 8, and 9.  Amendments necessary to revise the 
plan to be consistent with the county groundwater plan, as 
required by subdivision 4, must be submitted for review in 
accordance with subdivisions 7, 8, and 9.  [473.878 s. 9] 
    Sec. 12.  [103B.235] [LOCAL WATER MANAGEMENT PLANS.] 
    Subdivision 1.  [REQUIREMENT.] (a) After the watershed plan 
is approved and adopted, or amended, pursuant to section 11, the 
local government units having land use planning and regulatory 
responsibility for territory within the watershed shall prepare 
or cause to be prepared a local water management plan, capital 
improvement program, and official controls as necessary to bring 
local water management into conformance with the watershed plan 
within the time period prescribed in the implementation program 
of the watershed plan and, as necessary, shall prepare or cause 
to be prepared amendments to the local comprehensive plan.  
     (b) Each town within the counties of Anoka, Carver, Dakota, 
Scott, and Washington authorized by general or special law to 
plan and regulate the use of land under sections 462.351 to 
462.364 shall by resolution determine whether to prepare the 
local water management plan itself or to delegate all or part of 
the preparation of the plan to the county.  
     (c) Towns within counties that have adopted comprehensive 
plans applicable to the town must use county preparation of 
their plan to the maximum extent possible.  [473.879 s. 1] 
    Subd. 2.  [CONTENTS.] Each local plan, in the degree of 
detail required in the watershed plan, shall:  
    (1) describe existing and proposed physical environment and 
land use; 
    (2) define drainage areas and the volumes, rates, and paths 
of stormwater runoff; 
    (3) identify areas and elevations for stormwater storage 
adequate to meet performance standards established in the 
watershed plan; 
    (4) define water quality and water quality protection 
methods adequate to meet performance standards established in 
the watershed plan; 
    (5) identify regulated areas; and 
    (6) set forth an implementation program, including a 
description of official controls and, as appropriate, a capital 
improvement program.  [473.879 s. 2] 
    Subd. 3.  [REVIEW.] After consideration but before adoption 
by the governing body, each local unit shall submit its water 
management plan to the watershed management organization for 
review for consistency with the watershed plan adopted pursuant 
to section 11.  The organization shall approve or disapprove the 
local plan or parts of the plan.  The organization shall have 60 
days to complete its review.  If the organization fails to 
complete its review within the prescribed period, the local plan 
shall be deemed approved unless an extension is agreed to by the 
local unit.  [473.879 s. 3] 
    Subd. 4.  [ADOPTION AND IMPLEMENTATION.] After approval of 
the local plan by the organization, the local government unit 
shall adopt and implement its plan within 120 days and shall 
amend its official controls accordingly within 180 days.  
[473.879 s. 4] 
    Subd. 5.  [AMENDMENTS.] To the extent and in the manner 
required by the organization, all amendments to local water 
management plans shall be submitted to the organization for 
review and approval in accordance with the provisions of 
subdivision 3 for the review of plans.  [473.879 s. 5] 
    Sec. 13.  [103B.241] [LEVY.] 
    A levy to pay the increased costs to a local government 
unit or watershed management organization of implementing 
sections 11 and 12 or to pay costs of improvements and 
maintenance of improvements identified in an approved and 
adopted plan shall be in addition to any other taxes authorized 
by law and shall be disregarded in the calculation of per capita 
limits on taxes imposed by section 275.11, except levies 
pursuant to section 15, subdivision 9.  Notwithstanding any 
provision to the contrary in chapter 103D, a watershed district 
may levy a tax sufficient to pay the increased costs to the 
district of implementing sections 11 and 12.  The proceeds of 
any tax levied under this section shall be deposited in a 
separate fund and expended only for the purposes authorized by 
this section.  [473.881] 
    Sec. 14.  [103B.245] [SPECIAL TAX DISTRICT.] 
    Subdivision 1.  [WATERSHED MANAGEMENT TAX DISTRICT.] Any 
local government unit planning for water management under 
sections 11 and 12 may establish a watershed management tax 
district in the territory within the watershed, for the purpose 
of paying the costs of the planning required under sections 11 
and 12.  Any local government unit which has part of its 
territory within a watershed for which a plan has been adopted 
in accordance with section 11 and which has a local water 
management plan adopted in accordance with section 12 may 
establish a watershed management tax district in the territory 
within the watershed or a minor watershed unit in the watershed, 
for the purpose of paying capital costs of the water management 
facilities described in the capital improvement program of the 
plans and for the purpose of paying for normal and routine 
maintenance of the facilities.  A county or counties required by 
section 11, subdivision 3, to prepare, adopt, and implement a 
watershed plan shall apportion the costs of planning, capital 
improvements, and maintenance proportionate to benefits.  The 
county may apportion the costs among the minor watershed units 
in the watershed, or among the statutory and home rule charter 
cities and towns having territory in the watershed, and for this 
purpose may establish more than one watershed management tax 
district in the watershed.  [473.882 s. 1] 
    Subd. 2.  [PROCEDURE.] The district shall be established by 
ordinance adopted after a hearing.  Notice of the time, place, 
and purpose of the hearing shall be published for two successive 
weeks in the official newspaper of the local government unit, 
ending at least seven days before the day of the hearing.  The 
ordinance shall describe with particularity the territory or 
area to be included in the district.  After adoption, the 
ordinance shall be filed with the county auditor and county 
recorder.  The district may be dissolved by following the 
procedures prescribed for the establishment of the district.  
[473.882 s. 2] 
    Subd. 3.  [TAX.] After adoption of the ordinance under 
subdivision 2, a local government unit may annually levy a tax 
on all taxable property in the district for the purposes for 
which the tax district is established.  The tax may not exceed 
0.02418 percent of market value on taxable property located in 
rural towns other than urban towns, unless allowed by resolution 
of the town electors.  The proceeds of the tax shall be paid 
into a fund reserved for these purposes.  Any proceeds remaining 
in the reserve fund at the time the tax is terminated or the 
district is dissolved shall be transferred and irrevocably 
pledged to the debt service fund of the local unit to be used 
solely to reduce tax levies for bonded indebtedness of taxable 
property in the district.  [473.882 s. 3] 
    Subd. 4.  [BONDS.] After adoption of the ordinance under 
subdivision 2, and after a contract for the construction of all 
or part of an improvement has been entered into or the work has 
been ordered done by day labor, the local government unit may 
issue obligations in the amount it deems necessary to pay in 
whole or in part the capital cost incurred and estimated to be 
incurred in making the improvement.  The obligations shall be 
payable out of the proceeds of the tax levied pursuant to 
subdivision 3.  The local unit may by resolution of its 
governing body adopted prior to the sale of obligations pledge 
the full faith, credit and taxing power of the local unit to 
assure payment of the principal and interest in the event the 
proceeds of the tax levy in the district are insufficient to pay 
principal and interest.  The amount of any taxes which are 
required to be levied outside of the territory of the tax 
district or taken from the general funds of the local unit to 
pay principal and interest on the obligations shall be 
reimbursed to the local unit from taxes levied within the 
territory of the tax district.  Obligations shall be issued in 
accordance with chapter 475, except that an election is not 
required and the amount of any obligations shall not be included 
in determining the net indebtedness of the local unit under the 
provisions of any law or charter limiting indebtedness.  
[473.882 s. 4] 
    Sec. 15.  [103B.251] [CAPITAL IMPROVEMENTS BY WATERSHED 
MANAGEMENT ORGANIZATIONS.] 
    Subdivision 1.  [GENERAL AUTHORITY.] The authority provided 
to watershed districts in this section is in addition to the 
authority provided in chapter 103D.  A watershed management 
organization which has adopted a watershed plan in accordance 
with section 11 may certify for payment by the county as 
provided in this section all or any part of the cost of a 
capital improvement contained in the capital improvement program 
of the plan.  [473.883 s. 1] 
    Subd. 2.  [COUNTY BOARD TO RECEIVE PLAN FOR IMPROVEMENT.] A 
copy of the plan for the improvement shall be forwarded to the 
county board.  [473.883 s. 2] 
     Subd. 3.  [IMPROVEMENT HEARING NOTICE.] (a) The 
organization shall then hold a public hearing on the proposed 
improvement, following publication once each week for two 
successive weeks before the date of the hearing in a legal 
newspaper published in the county or counties in which a part or 
all of the affected waters and lands are located.  The last 
publication shall occur not more than 30 days nor less than ten 
days before the hearing.  
     (b) The notice shall state the time and place of hearing, 
the general nature of the proposed improvement, the estimated 
cost, and the method by which the cost of the improvement is to 
be paid, including the cost to be allocated to each county or 
minor watershed unit under subdivision 5.  The cost must be 
apportioned according to the benefits received by property in 
the county.  
    (c) At least ten days before the hearing, notice by mail 
shall be given to the counties and to each home rule charter or 
statutory city or town located wholly or partly within the 
territory of the watershed management organization.  
     (d) Failure to give mailed notice or defects in the notice 
shall not invalidate the proceedings.  [473.883 s. 2] 
    Subd. 4.  [IMPROVEMENT HEARING.] At the time and place 
specified in the notice the organization shall hear all parties 
interested in the proposed improvement.  If upon full hearing 
the organization finds that the improvement will be conducive to 
public health and promote the general welfare, and is in 
compliance with sections 6 to 16 and the plan adopted pursuant 
to section 11, it shall make findings accordingly, determine the 
cost of the improvement, and certify the cost before October 1 
to the county or counties for payment.  [473.883 s. 2] 
    Subd. 5.  [APPORTIONMENT OF COSTS.] If the territory of the 
watershed management organization extends into more than one 
county, the cost of the improvement shall be certified to the 
respective county boards in the proportions prescribed in the 
capital improvement program of the organization.  The 
certification of the watershed management organization may 
apportion the cost among some or all of the minor watershed 
units in the watershed and for this purpose may require the 
establishment of more than one tax district in the watershed.  
[473.883 s. 3] 
    Subd. 6.  [COUNTY PAYMENT.] Each county receiving 
certifications for payment from watershed management 
organizations under this section shall promptly after September 
30 of each year provide funds to meet its proportionate share of 
the cost of the improvements as shown in the certifications by 
organizations received during the prior 12 months.  In an 
emergency and after receipt of certification the county shall 
provide funds at other times.  When an organization anticipates 
an emergency it shall promptly inform the county and provide it 
with appropriate information.  [473.883 s. 4] 
    Subd. 7.  [BONDS.] In order to make the payment required by 
subdivision 6, the county board of each county may issue general 
obligation bonds of the county in the amount necessary to pay 
all or part of the cost of improvements certified to the county 
board or to refund general obligation bonds issued for this 
purpose.  The bonds shall be sold, issued, and secured in 
accordance with the provisions of chapter 475 for general 
obligation bonds, except as otherwise provided in this 
subdivision.  No election shall be required.  [473.883 s. 5] 
    Subd. 8.  [TAX.] (a) For the payment of principal and 
interest on the bonds issued under subdivision 7 and the payment 
required under subdivision 6, the county shall irrevocably 
pledge and appropriate the proceeds of a tax levied on all 
taxable property located within the territory of the watershed 
management organization or minor watershed unit for which the 
bonds are issued.  Each year until the reserve for payment of 
the bonds is sufficient to retire the bonds, the county shall 
levy on all taxable property in the territory of the 
organization or unit, without respect to any statutory or other 
limitation on taxes, an amount of taxes sufficient to pay 
principal and interest on the bonds and to restore any 
deficiencies in reserves required to be maintained for payment 
of the bonds.  
     (b) The tax levied on rural towns other than urban towns 
may not exceed 0.02418 percent of taxable market value, unless 
approved by resolution of the town electors. 
     (c) If at any time the amounts available from the levy on 
property in the territory of the organization are insufficient 
to pay principal and interest on the bonds when due, the county 
shall make payment from any available funds in the county 
treasury.  
     (d) The amount of any taxes which are required to be levied 
outside of the territory of the watershed management 
organization or unit or taken from the general funds of the 
county to pay principal or interest on the bonds shall be 
reimbursed to the county from taxes levied within the territory 
of the watershed management organization or unit.  [473.883 s. 
6] 
    Subd. 9.  [MAINTENANCE LEVY.] For the purpose of creating a 
maintenance fund to be used for normal and routine maintenance 
of a work of improvement constructed in whole or part with money 
provided by the county pursuant to subdivision 6, the board of 
managers of a watershed district, with the approval of the 
county, may impose an ad valorem levy on all property located 
within the territory of the watershed district or minor 
watershed unit.  The levy shall be certified, levied, collected, 
and distributed as provided in article 4, sections 71 and 72, 
and shall be in addition to any other money levied and 
distributed to the district.  The proceeds of the levy shall be 
deposited in a separate maintenance and repair account to be 
used only for the purpose for which the levy was made.  [473.883 
s. 7] 

                  METROPOLITAN GROUNDWATER MANAGEMENT 
    Sec. 16.  [103B.255] [GROUNDWATER PLANS.] 
    Subdivision 1.  [AUTHORITY.] A metropolitan county may 
prepare and adopt groundwater plans in accordance with this 
section.  [473.8785 s. 1] 
    Subd. 2.  [RESPONSIBLE UNITS.] The county may prepare and 
adopt the plan or, upon request of a soil and water conservation 
district, the county may delegate to the soil and water 
conservation district the preparation and adoption of all or 
part of a plan and the performance of other county 
responsibilities regarding the plan under this section and 
section 11.  [473.8785 s. 2] 
    Subd. 3.  [LOCAL COORDINATION.] To assure the coordination 
of efforts of all units of government during the preparation and 
implementation of watershed and groundwater plans, the county 
shall conduct meetings with local units of government and 
watershed management organizations, and may enter into 
agreements with local units of government and watershed 
management organizations establishing the responsibilities 
during the preparation and implementation of the water plans.  
[473.8785 s. 3] 
    Subd. 4.  [ASSISTANCE.] The county may contract with the 
Minnesota geological survey, the United States Geological 
Survey, a soil and water conservation district, or other public 
or private agencies or persons for services in performing the 
county's responsibilities regarding the plan under this section 
and section 11.  Counties may enter into agreements with other 
counties or local units of government under section 471.59 for 
the performance of these responsibilities.  To assist in the 
development of the groundwater plan, the county shall seek the 
advice of the advisory committee, the Minnesota geological 
survey, the departments of health and natural resources, the 
pollution control agency, and other appropriate local, state, 
and federal agencies.  [473.8785 s. 4] 
     Subd. 5.  [ADVISORY COMMITTEES.] (a) The county shall name 
an advisory committee of 15 members.  The committee must include 
representatives of various interests, including construction, 
agriculture, hydrogeology, and well drilling.  At least four 
members of the committee must be from the public at large with 
no direct pecuniary interest in any project involving 
groundwater protection.  At least seven members must be 
appointed from watershed management organizations, statutory and 
home rule charter cities, and towns, and these local government 
representatives must be geographically distributed so that at 
least one is appointed from each county commissioner district.  
     (b) The county shall consult the advisory committee on the 
development, content, and implementation of the plan, including 
the relationship of the groundwater plan and existing watershed 
and local water management plans, the effect of the groundwater 
plan on the other plans, and the allocation of costs and 
governmental authority and responsibilities during 
implementation.  [473.8785 s. 4] 
    Subd. 6.  [GENERAL STANDARDS.] (a) The groundwater plan 
must extend through the year 1995 or any later year that is 
evenly divisible by five.  The plan must contain the elements 
required by subdivision 7.  Each element must be set out in the 
degree of detail and prescription necessary to accomplish the 
purposes of sections 6 to 16, considering the character of 
existing and anticipated physical and hydrogeologic conditions, 
land use, and development and the severity of existing and 
anticipated groundwater management problems in the county.  
     (b) To the fullest extent possible in a manner consistent 
with groundwater protection, a county shall make maximum use of 
existing and available data and studies in preparing the 
groundwater plan and incorporate into its groundwater plan 
relevant data from existing plans and studies and the relevant 
provisions of existing plans adopted by watershed management 
organizations having jurisdiction wholly or partly within the 
county.  [473.8785 s. 5] 
    Subd. 7.  [CONTENTS.] A groundwater plan must: 
    (1) cover the entire area within the county; 
    (2) describe existing and expected changes to the physical 
environment, land use, and development in the county; 
    (3) summarize available information about the groundwater 
and related resources in the county, including existing and 
potential distribution, availability, quality, and use; 
    (4) state the goals, objectives, scope, and priorities of 
groundwater protection in the county; 
    (5) contain standards, criteria, and guidelines for the 
protection of groundwater from pollution and for various types 
of land uses in environmentally sensitive areas, critical areas, 
or previously contaminated areas; 
    (6) describe relationships and possible conflicts between 
the groundwater plan and the plans of other counties, local 
government units, and watershed management organizations in the 
affected groundwater system; 
    (7) set forth standards and guidelines for implementation 
of the plan by watershed management organizations and local 
units of government; and 
    (8) include a procedure for amending the groundwater plan. 
[473.8785 s. 6] 
    Subd. 8.  [LOCAL REVIEW AND COMMENT.] Upon completion of 
the groundwater plan but before final adoption by the county, 
the county shall submit the plan for review and comment to each 
soil and water conservation district, town, statutory and home 
rule charter city, and watershed management organization having 
territory within the county.  The county also shall submit the 
plan to any other county or watershed management organization or 
district in the affected groundwater system that could affect or 
be affected by implementation of the plan.  Any political 
subdivision or watershed management organization that expects 
that substantial amendment of its plans would be necessary in 
order to bring them into conformance with the county groundwater 
plan shall describe as specifically as possible, within its 
comments, the amendments that it expects would be necessary and 
the cost of amendment and implementation.  Reviewing entities 
have 60 days to review and comment.  Differences among local 
governmental agencies regarding the plan must be mediated.  
[473.8785 s. 7] 
    Subd. 9.  [REVIEW BY METROPOLITAN COUNCIL.] After 
completion of the review under subdivision 8, the plan and all 
comments received must be submitted to the metropolitan council 
for review.  Notwithstanding any provision to the contrary in 
article 4, sections 30 and 31, and section 473.165, the council 
shall review the plan in the same manner and with the same 
authority and effect as provided for the council's review of the 
comprehensive plans of local government units under section 
473.175.  The council shall comment on the apparent conformity 
with metropolitan system plans of any anticipated amendments to 
watershed plans and local comprehensive plans.  The council 
shall summarize and evaluate the cost of rectifying 
inconsistencies between the groundwater plan and watershed 
plans.  If the council finds that significant funding problems, 
needs, or inequities will result from the groundwater plan, the 
council shall report to the legislature on the matter and on 
appropriate means of allocating and paying costs.  The council 
may mediate and attempt to resolve differences among local 
governmental agencies regarding the plan. [473.8785 s. 8] 
    Subd. 10.  [REVIEW BY STATE AGENCIES.] (a) After completion 
of the review under subdivision 9, the plan and all comments 
received must be submitted to the commissioners of natural 
resources, health, and the pollution control agency for review 
and comment on the consistency of the plan with state laws and 
rules relating to water and related land resources, and to the 
board of water and soil resources for review under article 4, 
sections 30 and 31.  
    (b) Except as otherwise provided in this subdivision, the 
board of water and soil resources shall review the plan as 
provided in article 4, section 30.  The board shall review the 
plan for conformance with the requirements of chapter 103D and 
sections 6 to 16.  The board may not prescribe a plan but may 
disapprove all or parts of a plan which it determines is not in 
conformance with the requirements of chapter 103D and sections 6 
to 16.  [473.8785 s. 9] 
    Subd. 11.  [ADOPTION AND IMPLEMENTATION.] The county shall 
adopt and implement its groundwater plan within 120 days after 
approval of the plan by the board of water and soil resources.  
[473.8785 s. 10] 
    Subd. 12.  [AMENDMENTS.] To the extent and in the manner 
required by the adopted plan, all amendments to the adopted plan 
must be submitted to the towns, cities, counties, and other 
agencies for review in accordance with the provisions of 
subdivisions 8 to 10.  [473.8785 s. 11] 

                          LOCAL WATER PLANNING 
    Sec. 17.  [103B.301] [TITLE.] 
    Sections 17 to 28 may be cited as the "comprehensive local 
water management act."  [110B.01] 
    Sec. 18.  [103B.305] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 17 to 28.  [110B.02 s. 1] 
    Subd. 2.  [BOARD.] "Board" means the board of water and 
soil resources.  [110B.02 s. 2] 
    Subd. 3.  [COMPREHENSIVE WATER PLAN.] "Comprehensive water 
plan" means the plan adopted by a county under sections 19 and 
20.  [110B.02 s. 3] 
    Subd. 4.  [GROUNDWATER SYSTEMS.] "Groundwater systems" 
means the 14 principal aquifers of the state as defined by the 
United States Geological Survey in the Water-Resources 
Investigations 81-51, entitled "Designation of Principal Water 
Supply Aquifers in Minnesota" (August 1981), and its revisions.  
[110B.02 s. 4] 
    Subd. 5.  [LOCAL UNITS OF GOVERNMENT.] "Local units of 
government" means municipalities, towns, counties, soil and 
water conservation districts, watershed districts, organizations 
formed for the joint exercise of powers under section 471.59, 
and other special purpose districts or authorities exercising 
authority in water and related land resources management at the 
local level.  [110B.02 s. 5] 
    Subd. 6.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city.  [110B.02 s. 6] 
    Subd. 7.  [OFFICIAL CONTROLS.] "Official controls" means 
ordinances and regulations that control the physical development 
of the whole or part of a local government unit or that 
implement the general objectives of the local government unit.  
[110B.02 s. 7] 
    Subd. 8.  [RELATED LAND RESOURCES.] "Related land 
resources" means land affected by present or projected 
management practices that have significant effects on the 
quantity and quality, or use of groundwater or surface water.  
[110B.02 s. 8] 
    Subd. 9.  [WATERSHED MANAGEMENT ORGANIZATION.] "Watershed 
management organization" has the meaning given in section 6, 
subdivision 13.  [110B.02 s. 9] 
    Subd. 10.  [WATERSHED UNITS.] "Watershed units" means each 
of the 81 major watershed units identified in the state 
watershed boundaries map prepared pursuant to the requirements 
of Laws 1977, chapter 455, section 33, subdivision 7, paragraph 
(a) and the accompanying data base, and the revisions of that 
data base.  [110B.02 s. 10] 
    Sec. 19.  [103B.311] [COUNTY WATER PLANNING AND 
MANAGEMENT.] 
    Subdivision 1.  [COUNTY DUTIES.] Each county is encouraged 
to develop and implement a comprehensive water plan.  Each 
county that develops and implements a plan has the duty and 
authority to: 
    (1) prepare and adopt a comprehensive water plan that meets 
the requirements of this section and section 20; 
    (2) review water and related land resources plans and 
official controls submitted by local units of government to 
assure consistency with the comprehensive water plan; and 
    (3) exercise any and all powers necessary to assure 
implementation of comprehensive water plans.  [110B.04 s. 1] 
    Subd. 2.  [DELEGATION.] The county is responsible for 
preparing, adopting, and assuring implementation of the 
comprehensive water plan, but may delegate all or part of the 
preparation of the plan to a local unit of government, a 
regional development commission, or a resource conservation and 
development committee.  The county may not delegate authority 
for the exercise of eminent domain, taxation, or assessment to a 
local unit of government that does not possess those powers.  
[110B.04 s. 2] 
    Subd. 3.  [COORDINATION.] (a) To assure the coordination of 
efforts of all local units of government within a county during 
the preparation and implementation of a comprehensive water 
plan, each county intending to adopt a plan shall conduct 
meetings with other local units of government and may execute 
agreements with other local units of government establishing the 
responsibilities of each unit during the preparation and 
implementation of the comprehensive water plan. 
    (b) Each county intending to adopt a plan shall coordinate 
its planning program with contiguous counties.  Before meeting 
with local units of government, a county board shall notify the 
county boards of each county contiguous to it that the county is 
about to begin preparing its comprehensive water plan and is 
encouraged to request and hold a joint meeting with the 
contiguous county boards to consider the planning process.  
[110B.04 s. 3] 
    Subd. 4.  [WATER PLAN REQUIREMENTS.] (a) A comprehensive 
water plan must: 
    (1) cover the entire area within a county; 
    (2) address water problems in the context of watershed 
units and groundwater systems; 
    (3) be based upon principles of sound hydrologic management 
of water, effective environmental protection, and efficient 
management; 
    (4) be consistent with comprehensive water plans prepared 
by counties and watershed management organizations wholly or 
partially within a single watershed unit or groundwater system; 
and 
    (5) apply to every year through the year 1995 or any later 
year that is evenly divisible by five, and be updated before the 
period covered expires.  
    (b) Existing water and related land resources plans, 
including plans related to agricultural land preservation 
programs developed pursuant to chapter 40A, must be fully 
utilized in preparing the comprehensive water plan.  Duplication 
of the existing plans is not required.  [110B.04 s. 4] 
    Subd. 5.  [WATERSHED DISTRICT AND INTERCOUNTY JOINT POWERS 
BOARD PLANS AND RULES.] A county must incorporate into its 
comprehensive water plan any existing plans and rules adopted by 
a watershed district or intercounty joint powers board having 
jurisdiction wholly or partly within the county.  A county may 
change the plans and rules it incorporates if the county 
demonstrates in its comprehensive water plan why the changes are 
necessary and if the changes are agreed to by each county that 
is:  
     (1) responsible for the appointment of a manager serving on 
the watershed board; or 
     (2) represented on the joint powers board.  [110B.04 s. 5] 
    Subd. 6.  [SCOPE OF PLANS.] Comprehensive water plans must 
include: 
    (1) a description of the existing and expected changes to 
physical environment, land use, and development in the county; 
    (2) available information about the surface water, 
groundwater, and related land resources in the county, including 
existing and potential distribution, availability, quality, and 
use; 
    (3) objectives for future development, use, and 
conservation of water and related land resources, including 
objectives that concern water quality and quantity, and 
sensitive areas, wellhead protection areas, and related land use 
conditions, and a description of actions that will be taken in 
affected watersheds or groundwater systems to achieve the 
objectives; 
    (4) a description of potential changes in state programs, 
policies, and requirements considered important by the county to 
management of water resources in the county; 
    (5) a description of conflicts between the comprehensive 
water plan and existing plans of other local units of 
government; 
    (6) a description of possible conflicts between the 
comprehensive water plan and existing or proposed comprehensive 
water plans of other counties in the affected watershed units or 
groundwater systems; 
    (7) a program for implementation of the plan that is 
consistent with the plan's management objectives and includes 
schedules for amending official controls and water and related 
land resources plans of local units of government to conform 
with the comprehensive water plan, and the schedule, components, 
and expected state and local costs of any projects to implement 
the comprehensive water plan that may be proposed, although this 
does not mean that projects are required by this section; and 
    (8) a procedure for amending the comprehensive water plan.  
[110B.04 s. 6] 
    Subd. 7.  [DATA ACQUISITION.] The data collected under this 
section that has common value as determined by the state 
planning agency for natural resources planning must be provided 
and integrated into the Minnesota land management information 
systems geographic and summary data bases according to published 
data compatibility guidelines.  [110B.04 s. 7] 
    Sec. 20.  [103B.315] [COMPREHENSIVE WATER PLAN REVIEW AND 
ADOPTION.] 
    Subdivision 1.  [LOCAL REVIEW.] When the comprehensive 
water plan is completed, but before its final adoption by the 
county board, the county board shall submit the comprehensive 
water plan for review and comment to:  
    (1) all local units of government wholly or partly within 
the county; 
    (2) the applicable regional development commission, if any; 
    (3) each contiguous county and watershed management 
organization; and 
    (4) other counties or watershed management organizations 
within the same watershed unit and groundwater system that may 
be affected by proposals in the comprehensive water plan.  
[110B.08 s. 1] 
    Subd. 2.  [COMMENTS TO COUNTY BOARD.] (a) A local unit of 
government must review the comprehensive water plan and existing 
water and related land resources plans or official controls and 
in its comments describe in a general way possible amendments to 
its existing plans or official controls, and an estimate of the 
fiscal or policy effects that would be associated with those 
amendments, to bring them into conformance with the 
comprehensive water plan.  
    (b) A county or watershed management organization within 
the same watershed unit or groundwater system must review 
comprehensive water plans received and describe in its comments 
possible conflicts with its existing or proposed comprehensive 
water plan and suggest measures to resolve the conflicts. 
    (c) The regional development commission shall review the 
plan under section 462.391, subdivision 1.  [110B.08 s. 2] 
    Subd. 3.  [LOCAL REVIEW PERIOD.] Comments under subdivision 
2 must be submitted to the county board within 60 days after 
receiving a comprehensive water plan for comment, unless the 
county board of the county that prepared the plan determines 
that good cause exists for an extension of this period and 
grants an extension.  [110B.08 s. 3] 
    Subd. 4.  [PUBLIC HEARING.] The county board shall conduct 
a public hearing on the comprehensive water plan pursuant to 
section 375.51 after the 60-day period for local review and 
comment is completed, but before submitting it to the state for 
review.  [110B.08 s. 4] 
    Subd. 5.  [STATE REVIEW.] (a) After conducting the public 
hearing but before final adoption, the county board must submit 
its comprehensive water plan, all written comments received on 
the plan, a record of the public hearing under subdivision 4, 
and a summary of changes incorporated as a result of the review 
process to the board for review.  The board shall complete the 
review within 90 days after receiving a comprehensive water plan 
and supporting documents.  The board shall consult with the 
departments of agriculture, health, and natural resources; the 
pollution control agency; the state planning agency; the 
environmental quality board; and other appropriate state 
agencies during the review. 
    (b) The board may disapprove a comprehensive water plan if 
the board determines the plan is not consistent with state law. 
If a plan is disapproved, the board shall provide a written 
statement of its reasons for disapproval.  A disapproved 
comprehensive water plan must be revised by the county board and 
resubmitted for approval by the board within 120 days after 
receiving notice of disapproval of the comprehensive water plan, 
unless the board extends the period for good cause.  The 
decision of the board to disapprove the plan may be appealed by 
the county to district court.  [110B.08 s. 5] 
    Subd. 6.  [ADOPTION AND IMPLEMENTATION.] A county board 
shall adopt and begin implementation of its comprehensive water 
plan within 120 days after receiving notice of approval of the 
plan from the board.  [110B.08 s. 6] 
    Subd. 7.  [AMENDMENTS.] Amendments to a comprehensive water 
plan must be submitted to local units of government and to the 
board in the same manner as a comprehensive water plan.  
[110B.08 s. 7] 
    Sec. 21.  [103B.321] [DUTIES OF THE BOARD.] 
    Subdivision 1.  [GENERAL.] The board shall:  
    (1) develop guidelines for the contents of comprehensive 
water plans that provide for a flexible approach to meeting the 
different water and related land resources needs of counties and 
watersheds across the state; 
    (2) coordinate assistance of state agencies to counties and 
other local units of government involved in preparation of 
comprehensive water plans, including identification of pertinent 
data and studies available from the state and federal 
government; 
    (3) conduct an active program of information and education 
concerning the requirements and purposes of sections 17 to 28 in 
conjunction with the association of Minnesota counties; 
    (4) determine contested cases under section 26; 
    (5) establish a process for review of comprehensive water 
plans that assures the plans are consistent with state law; and 
    (6) report to the legislative commission on Minnesota 
resources as required by section 27.  [110B.10 s. 1] 
    Subd. 2.  [RULEMAKING.] The board shall adopt rules to 
implement sections 17 to 28.  [110B.10 s. 2] 
    Subd. 3.  [LOCAL ADVISORY COMMITTEE.] The board shall use a 
committee, consisting of persons representing counties, soil and 
water conservation districts, municipalities, and townships and 
persons interested in water planning, to assist the board in the 
water planning process.  Members must be appointed, serve, and 
be paid their expenses but may not receive other compensation, 
pursuant to section 15.014.  [110B.10 s. 3] 
    Sec. 22.  [103B.325] [CONSISTENCY OF LOCAL PLANS AND 
CONTROLS WITH THE COMPREHENSIVE WATER PLAN.] 
    Subdivision 1.  [REQUIREMENT.] Local units of government 
shall amend existing water and related land resources plans and 
official controls as necessary to conform them to the 
applicable, approved comprehensive water plan following the 
procedures in this section.  [110B.12 s. 1] 
    Subd. 2.  [PROCEDURE.] Within 90 days after local units of 
government are notified by the county board of the adoption of a 
comprehensive water plan or of adoption of an amendment to a 
comprehensive water plan, the local units of government 
exercising water and related land resources planning and 
regulatory responsibility for areas within the county must 
submit existing water and related land resources plans and 
official controls to the county board for review.  The county 
board shall identify any inconsistency between the plans and 
controls and the comprehensive water plan and shall recommend 
the amendments necessary to bring local plans and official 
controls into conformance with the comprehensive water plan.  
[110B.12 s. 2] 
    Subd. 3.  [REVISION AND IMPLEMENTATION.] Local units of 
government shall revise existing plans and official controls to 
conform them to the recommendations of the county board and 
shall initiate implementation of the revised plans and controls 
within 180 days after receiving the recommendations of the 
county board, or 180 days after resolution of an appeal, 
whichever is later.  [110B.12 s. 3] 
    Subd. 4.  [APPEALS.] A local unit of government may, within 
60 days after receiving the recommendations of the county board, 
appeal any recommendation to the board of water and soil 
resources for a hearing as provided in section 26.  [110B.12 s. 
4] 
    Subd. 5.  [NEW PLANS AND CONTROLS.] New or amended water 
and related land resources plans and official controls proposed 
by local units of government for their adoption following 
adoption of the comprehensive water plan shall be submitted to 
the county board for review and recommendation as provided under 
this section.  [110B.12 s. 5] 
    Sec. 23.  [103B.331] [AUTHORITY UNDER APPROVED 
COMPREHENSIVE WATER PLANS.] 
    Subdivision 1.  [AUTHORITY.] When an approved comprehensive 
water plan is adopted the county has the authority specified in 
this section.  [110B.15 s. 1] 
    Subd. 2.  [REGULATION OF WATER AND LAND RESOURCES.] The 
county may regulate the use and development of water and related 
land resources within incorporated areas when one or more of the 
following conditions exists: 
    (1) the municipality does not have a local water and 
related land resources plan or official controls consistent with 
the comprehensive water plan; 
    (2) a municipal action granting a variance or conditional 
use would result in an action inconsistent with the 
comprehensive water plan; 
    (3) the municipality has authorized the county to require 
permits for the use and development of water and related land 
resources; or 
    (4) a state agency has delegated the administration of a 
state permit program to the county.  [110B.15 s. 2] 
    Subd. 3.  [ACQUISITION OF PROPERTY; ASSESSMENT OF COSTS.] A 
county may: 
    (1) acquire in the name of the county, by condemnation 
under chapter 117, real and personal property found by the 
county board to be necessary for the implementation of an 
approved comprehensive water plan; 
    (2) assess the costs of projects necessary to implement the 
comprehensive water plan undertaken under sections 17 to 28 upon 
the property benefited within the county in the manner provided 
for municipalities by chapter 429; 
    (3) charge users for services provided by the county 
necessary to implement the comprehensive water plan; and 
    (4) establish one or more special taxing districts within 
the county and issue bonds for the purpose of financing capital 
improvements under sections 17 to 28. [110B.15 s. 3] 
    Subd. 4.  [SPECIAL TAXING DISTRICT.] (a) A tax district 
authorized under subdivision 3, clause (4), must be established 
by resolution adopted by the county board after a hearing.  
Notice of the time, place, and purpose of the hearing must be 
published for two successive weeks in the official newspaper of 
the county, ending at least seven days before the day of the 
hearing.  The resolution must describe with particularity the 
territory or area to be included in the tax district.  After 
adoption, the resolution must be filed with the county auditor 
and county recorder.  The district may be dissolved by following 
the procedures prescribed for the establishment of the district. 
    (b) After adoption of the resolution under paragraph (a), a 
county may annually levy a tax on all taxable property in the 
district for the purposes for which the tax district was 
established.  The proceeds of the tax must be paid into a fund 
reserved for these purposes.  Any proceeds remaining in the 
reserve fund at the time the tax is terminated or the district 
is dissolved must be transferred and irrevocably pledged to the 
debt service fund of the county to be used only to reduce tax 
levies for bonded indebtedness of taxable property in the 
district. 
    (c) After adoption of the resolution under paragraph (a), 
and after a contract for the construction of all or part of an 
improvement has been entered into or the work has been ordered 
to be done by hired labor, the county may issue obligations in 
the amount determined by the county board to be necessary to pay 
in whole or in part the capital cost incurred and estimated to 
be incurred in making the improvement.  The obligations are 
payable out of the proceeds of the tax levied under this 
subdivision.  The county board may, by resolution adopted prior 
to the sale of obligations, pledge the full faith, credit, and 
taxing power of the county to assure payment of the principal 
and interest in the event the proceeds of the tax levy in the 
district are insufficient to pay principal and interest.  The 
amount of any taxes that are required to be levied outside of 
the territory of the tax district or taken from the general 
funds of the county to pay principal and interest on the 
obligations must be reimbursed to the county from taxes levied 
within the territory of the tax district.  Obligations must be 
issued in accordance with chapter 475, except that an election 
is not required and the amount of any obligations must not be 
included in determining the net indebtedness of the county under 
the provisions of any law or charter limiting indebtedness.  
[110B.15 s. 4] 
    Sec. 24.  [103B.335] [TAX; EXEMPTION FROM PER CAPITA LEVY 
LIMIT.] 
    The governing body of any county, municipality, or township 
may levy a tax in an amount required to implement sections 17 to 
28.  The amount of the levy up to 0.01813 percent of taxable 
market value is exempt from the per capita levy limit under 
section 275.11.  [110B.20] 
    Sec. 25.  [103B.341] [PUBLIC DRAINAGE.] 
    Projects necessary to implement the comprehensive water 
plan that are intended for the purpose of improving drainage 
must be established, repaired, and improved under chapter 103E 
and not sections 17 to 28.  [110B.22] 
    Sec. 26.  [103B.345] [RESOLUTION OF DISPUTES.] 
    Subdivision 1.  [INFORMAL RESOLUTION.] The county or other 
local unit of government may request a meeting with the chair of 
the board of water and soil resources to informally resolve a 
dispute before initiating a contested case procedure under this 
section.  [110B.25 s. 1] 
    Subd. 2.  [PETITION FOR HEARING.] A county or other local 
unit of government may petition for a contested case hearing by 
the board under this section if: 
    (1) the interpretation and implementation of a 
comprehensive water plan is challenged by a local unit of 
government aggrieved by the plan; 
    (2) two or more counties disagree about the apportionment 
of the costs of a project implementing a comprehensive water 
plan; or 
    (3) a county and another local unit of government disagree 
about a change in a local water and related land resources plan 
or official control recommended by the county under section 22.  
[110B.25 s. 2] 
    Subd. 3.  [TIME FOR PETITION.] The county or other local 
unit of government must file the petition by 60 days after: 
    (1) the date of the adoption or approval of the disputed 
ordinance or other decision required to be made to implement the 
comprehensive water plan; or 
    (2) the date a local unit of government receives a 
recommendation of the county board under section 22.  [110B.25 
s. 3] 
    Subd. 4.  [HEARING.] If the aggrieved county or other local 
unit of government files a petition for a hearing, a hearing 
must be conducted by the state office of administrative hearings 
under the contested case procedure of chapter 14 within 60 days 
of the request.  The subject of the hearing may not extend to 
questions concerning the need for a comprehensive water plan.  
In the report of the administrative law judge, the fees of the 
office of administrative hearings and transcript fees must be 
equally apportioned among the parties to the proceeding.  Within 
60 days after receiving the report of the administrative law 
judge, the board shall, by resolution containing findings of 
fact and conclusions of law, make a final decision with respect 
to the issue before it.  [110B.25 s. 4] 
    Subd. 5.  [APPEAL.] Any local unit of government or state 
agency aggrieved by the final decision of the board may appeal 
the decision to the court of appeals in the manner provided by 
sections 14.63 to 14.69.  [110B.25 s. 5] 
    Sec. 27.  [103B.351] [COMMISSION OVERSIGHT; REPORT 
REQUIRED.] 
    The board shall, on or before January 15 of each year, 
submit to the legislative commission on Minnesota resources a 
written report on the board's functions and the implementation 
of sections 17 to 28 since the previous report under this 
section was submitted.  The report to the commission must 
include the board's recommendations for changes to sections 17 
to 28 and any recommendations for funding.  The board shall also 
report to the commission at other times requested by the 
commission.  The commission may make recommendations to the 
legislature concerning the funding, implementation, and 
amendment of the act. [110B.28] 
    Sec. 28.  [103B.355] [APPLICATION.] 
    Sections 17 to 28 do not apply in areas subject to the 
requirements of section 11, subdivision 1, and in areas covered 
by an agreement entered into by December 31, 1985, under section 
11, subdivision 2, except as otherwise provided in sections 19, 
subdivision 4, clause (4); and 20, subdivision 1, clauses (3) 
and (4), and subdivision 2, clause (b).  [110B.30] 

           SOUTH DAKOTA - MINNESOTA BOUNDARY WATERS COMMISSION
    Sec. 29.  [103B.451] [SOUTH DAKOTA-MINNESOTA BOUNDARY 
WATERS COMMISSION.] 
    Subdivision 1.  [ESTABLISHMENT.] An interstate commission 
known as the South Dakota-Minnesota boundary waters commission 
is established.  The members of the commission shall be the 
secretaries of the department of water and natural resources and 
the department of game, fish and parks of South Dakota and the 
commissioners of natural resources and the pollution control 
agency of Minnesota.  The fifth member shall be a qualified 
engineer appointed for a four year term by the mutual consent of 
the governors of Minnesota and South Dakota.  [114.13 s. 1] 
    Subd. 2.  [AUTHORITY.] (a) The commission shall have power 
and authority: 
    (1) to investigate and determine the most desirable and 
beneficial levels of boundary waters artificially controlled and 
to prescribe a plan for controlling and regulating water levels; 
    (2) to hold hearings and take evidence as may be presented, 
either after complaint or upon its own initiative, as to the 
desirability of any water level and plan of regulation, and to 
issue orders concerning the same which in its opinion are for 
the best interests of the public; 
    (3) to plan, propose, coordinate and hold hearings on lake 
protection and rehabilitation projects for boundary waters; and 
    (4) to accept and distribute grants from any source for the 
purposes set forth in this section.  [114.13 s. 1] 
    (b) The commission shall seek the advice of local units of 
government and encourage them to implement projects voluntarily 
and to enter into agreements with one another for that purpose.  
The commission itself has no authority to implement lake 
protection or rehabilitation projects.  [114.13 s. 2] 
    Subd. 3.  [ADVISORY COMMITTEE.] The commission shall 
establish one local advisory committee for all commission 
activities.  A majority of the members of the committee shall be 
elected officials of local governmental units, including tribal 
governments, within the boundary waters watershed with an equal 
number of representatives from each state.  The advisory 
committee shall be consulted prior to any activity conducted by 
the commission.  [114.13 s. 2a] 
    Subd. 4.  [HEARINGS.] (a) Hearings must be held at a time 
and place designated by the commission in counties affected by 
the subject matter.  
    (b) At least two weeks' published notice of the hearings 
must be given by publication of the notice in a legal newspaper 
in each county bordering on the boundary waters that may be 
affected by the subject matter of the hearing.  
    (c) All final orders of the commission must be published 
once each week for two consecutive weeks in a legal newspaper in 
each county bordering on the boundary waters that may be 
affected.  The printer's affidavit of publication of all notices 
and orders must be filed with the commission.  Hearings held 
pursuant to this section shall not be subject to the 
requirements of chapter 14.  [114.13 s. 2] 
    Subd. 5.  [APPEALS.] Any party aggrieved by any order or 
any determination of the commission under this section may 
appeal to the district court or to the circuit court, as the 
case may be, of a county in either state where the subject 
matter of the order or the determination is wholly or partially 
located, or to the district court of the county in either state 
where its capitol is located.  Notice of appeal must be served 
upon the commission within 30 days from the last date of 
publication of the order appealed from.  Appeals may likewise be 
taken from the judgments of the district court or the circuit 
court, as the case may be, to the appellate courts of their 
respective states as in other civil cases.  [114.13 s. 4] 

                       LAKE IMPROVEMENT DISTRICTS 
    Sec. 30.  [103B.501] [LAKE IMPROVEMENT DISTRICTS.] 
    Sections 30 to 46 may be cited as the lake improvement 
district law.  [378.401] 
    Sec. 31.  [103B.505] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 31 to 46.  [378.405 s. 1] 
    Subd. 2.  [BOARD.] "Board" means county board.  [378.405 s. 
2] 
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  [378.405 s. 3] 
    Subd. 4.  [DISTRICT.] "District" means a lake improvement 
district.  [378.405 s. 4] 
    Subd. 5.  [JOINT COUNTY AUTHORITY.] "Joint county 
authority" means a joint county authority formed by county 
boards under section 35.  [378.405 s. 5] 
    Subd. 6.  [PROPERTY OWNER.] "Property owner" means the 
owner of real property within the district or the buyer under 
contract for deed of property in the district.  [378.405 s. 6] 
    Sec. 32.  [103B.511] [ADMINISTRATION BY COMMISSIONER.] 
    Subdivision 1.  [PURPOSE.] (a) To preserve and protect the 
lakes of the state and to increase and enhance the use and 
enjoyment of the lakes it is in the public interest that a 
statewide lake improvement program is established to:  preserve 
the natural character of lakes and their shoreland environment 
where feasible and practical; improve the quality of water in 
lakes; provide for reasonable assurance of water quantity in 
lakes, where feasible and practicable; and to assure protection 
of the lakes from the detrimental effects of human activities 
and certain natural processes.  The commissioner shall 
coordinate and supervise a local-state program for the 
establishment of lake improvement districts by counties for 
lakes located within their boundaries, based on state guidelines 
and rules and compatible with all state, regional, and local 
plans where the plans exist.  [378.31 s. 1; 378.41 s. 1] 
    (b) In administration of this program the commissioner of 
natural resources shall consult with and obtain advice from 
other state agencies on the aspects of the program over which 
the agencies have specific legislative authority, including the 
department of health and the pollution control agency.  [378.41 
s. 1] 
    Subd. 2.  [RULES.] The commissioner shall adopt permanent 
and emergency rules to provide guidelines, criteria and 
standards for the establishment of lake improvement districts by 
counties.  [378.41 s. 2] 
    Sec. 33.  [103B.515] [INITIATION AND ESTABLISHMENT BY 
COUNTY BOARD.] 
    Subdivision 1.  [RESOLUTION OF INTENT.] The county board 
may initiate the establishment of a lake improvement district in 
a portion of the county under this section.  The board must 
adopt a resolution declaring the intent of the board to 
establish a lake improvement district.  The resolution must: 
    (1) specify the boundaries of the district, which shall be 
encouraged to be as consistent as practical with natural 
hydrologic boundaries; 
    (2) prescribe the water and related land resource 
management programs to be undertaken in the district; 
    (3) state how the programs will be financed; 
    (4) designate the county officer or agency that will be 
responsible for supervising the programs; and 
    (5) set a date for a hearing on the resolution.  [378.42 s. 
1] 
    Subd. 2.  [NOTICE TO TOWN BOARD.] The county board shall, 
at least 30 days before making an order establishing a lake 
improvement district, send the town board of a town wholly or 
partially within the boundaries of the proposed district a copy 
of the resolution and encourage the town board to respond to the 
proposed creation of the district.  [378.42 s. 1a] 
    Subd. 3.  [HEARING.] The county board must hold a public 
hearing on whether a lake improvement district should be 
established.  Before the date set for the hearing, any 
interested person may file objections to the formation of the 
district with the county auditor.  At the hearing, any 
interested person may offer objections, criticisms, or 
suggestions about the necessity of the proposed district and how 
the person's property will be benefited or affected by the 
establishment of the district.  [378.42 s. 2] 
    Subd. 4.  [ESTABLISHMENT.] (a) The county board may 
establish a lake improvement district, by order, after making 
findings, if the board determines that the: 
    (1) proposed district is necessary or that the public 
welfare will be promoted by the establishment of the district; 
    (2) property to be included in the district will be 
benefited by establishing the district; and 
    (3) formation of the district will not cause or contribute 
to long-range environmental pollution. 
    (b) The order establishing the district must state the 
board's findings and specify or prescribe the items contained in 
subdivision 1, clauses (1) to (4).  [378.42 s. 3] 
    Sec. 34.  [103B.521] [INITIATION BY PETITION AND 
ESTABLISHMENT BY COUNTY BOARD.] 
    Subdivision 1.  [PETITION.] (a) A lake improvement district 
may be initiated by a petition to the county board.  The 
petition must state: 
    (1) the name of the proposed lake improvement district; 
    (2) the necessity of the proposed district to promote 
public health or public welfare; 
    (3) the benefits to property from the establishment of the 
lake improvement district; 
    (4) the boundaries of the proposed district which shall be 
encouraged to be as consistent as possible with natural 
hydrologic boundaries; 
    (5) a map of the proposed district; 
    (6) the number, from five to nine, of directors proposed 
for the district; and 
    (7) a request for establishing the district as proposed. 
    (b) A petition must be signed by 26 percent of the property 
owners within the proposed lake improvement district described 
in the petition.  Governmental subdivisions, other than the 
state or federal governments, owning lands within the proposed 
district are eligible to sign the petition. 
    (c) The petition must be filed with the county auditor and 
addressed to the board, requesting the board to establish a lake 
improvement district to develop and provide a program of water 
and related land resources management. 
    (d) The county board shall, at least 30 days before it acts 
on a petition, send the town board of a town wholly or partially 
within the boundaries of a proposed district a copy of the 
petition submitted under this subdivision and encourage the town 
board to respond to the proposed creation of the district.  
[378.43 s. 1] 
    Subd. 2.  [HEARING.] After receiving the petition, the 
county auditor must verify the signatures and notify the county 
board.  Within 30 days after being notified of the petition, the 
county board must hold a public hearing on whether the requested 
lake improvement district should be established.  [378.43 s. 2] 
    Subd. 3.  [ESTABLISHMENT.] Within 30 days after holding the 
public hearing, the county board shall, by order, establish or 
deny the establishment of the petitioned lake improvement 
district.  An order establishing a district must conform to 
section 37 and may modify the petition relating to the 
district's boundaries, functions, financing, or organization.  
[378.43 s. 3] 
    Sec. 35.  [103B.525] [ESTABLISHMENT OF A DISTRICT IN MORE 
THAN ONE COUNTY.] 
    Where the natural hydrologic boundaries of a proposed 
district extend into more than one county, the county boards of 
the counties affected may form a joint county authority and 
establish and maintain a lake improvement district jointly or 
cooperatively as provided in section 471.59.  The district may 
be initiated by the joint county authority in the same manner as 
by a county board under section 33 by petition to the affected 
county boards.  [378.44] 
    Sec. 36.  [103B.531] [CREATION BY COMMISSIONER OF NATURAL 
RESOURCES.] 
    Subdivision 1.  [PETITION TO COMMISSIONER.] If the county 
board of one or more of the counties affected has disapproved a 
petition for creation of a lake improvement district for an 
area, a petition for creation of a lake improvement district 
containing information required by section 34, subdivision 1, 
may be submitted to the commissioner of natural resources.  
[378.45 s. 1] 
    Subd. 2.  [DETERMINATION TO HOLD HEARING.] Upon receipt of 
the petition by the commissioner and verification of the 
signatures on the petition by the county, the commissioner may, 
within 30 days following verification, hold a public hearing at 
the expense of the county board on the question of whether the 
requested lake improvement district shall be established.  The 
commissioner, in determining whether to hold a public hearing, 
shall examine all facts relating to the petition, including the 
reasons why the petition was disapproved by the county.  [378.45 
s. 2] 
    Subd. 3.  [APPROVAL OR DENIAL OF PETITION.] (a) If a 
hearing is not to be held, within 30 days following the receipt 
of verification by the county, or within 30 days following the 
holding of a hearing, the commissioner shall, by order, approve 
or disapprove the establishment of the requested lake 
improvement district.  
     (b) If the commissioner determines that the establishment 
of the lake improvement district as requested in the petition 
would be for the public welfare and public interest, and that 
the purposes of section 32, subdivision 1, would be served by 
the establishment of a lake improvement district, the 
commissioner shall by order approve the establishment of the 
lake improvement district.  If the commissioner does not approve 
the establishment of the district, the commissioner shall by 
order disapprove the establishment.  
    (c) An order approving creation may contain modifications 
of the area's boundaries, functions, financing, or organization 
from what was stated in the petition.  [378.45 s. 3] 
    Sec. 37.  [103B.535] [ORDER ESTABLISHING DISTRICT.] 
    An order by the county board or joint county authority 
establishing a district must state the:  
    (1) name of the district; 
    (2) boundaries of the district, which are encouraged to be 
as consistent as practical with natural hydrologic boundaries; 
    (3) water and related land resources management programs 
and services to be undertaken; 
    (4) manner of financing programs and services; and 
    (5) number, qualifications, terms of office, removal, and 
filling of vacancies of the board of directors.  [378.455] 
    Sec. 38.  [103B.541] [PUBLICATION AND EFFECTIVE DATE.] 
    Subdivision 1.  [PUBLICATION OF ESTABLISHMENT ORDER.] If a 
lake improvement district is established, the county board, or 
joint county authority issuing the order establishing the 
district, shall publish the order once in the official 
newspapers of counties where the district is located and file 
the order with the secretary of state, the pollution control 
agency, and the commissioner of natural resources.  [378.46 s. 
1] 
    Subd. 2.  [EFFECTIVE DATE.] Establishment of the lake 
improvement district is effective 30 days after publication or 
at a later date, if specified in the establishment order.  
[378.46 s. 2] 
    Sec. 39.  [103B.545] [REFERENDUM ON ESTABLISHMENT.] 
    Subdivision 1.  [PETITION.] Twenty-six percent of the 
property owners within the lake improvement district established 
by the board or a joint county authority on its own initiative 
under section 33 may petition for a referendum on establishing 
the district before the effective date of its establishment.  
After receiving the petition, the county board or joint county 
authority must issue an order staying the establishment until a 
referendum vote is taken of all qualified voters and property 
owners within the proposed lake improvement district.  [378.47 
s. 1] 
    Subd. 2.  [ELECTION.] The county board or joint county 
authority shall conduct a special election in July or August 
after receiving the referendum petition.  The special election 
must be held within the proposed lake improvement district.  The 
county auditor shall administer the special election.  [378.47 
s. 2] 
    Subd. 3.  [QUESTION SUBMITTED TO VOTERS.] The question to 
be submitted and voted upon by the qualified voters and property 
owners within the proposed lake improvement district must be 
stated substantially as follows: 
    "Should a lake improvement district be established to 
provide (description of intended water and related land 
resources improvements) and financed by (description of revenue 
sources)?"  [378.47 s. 3] 
    Subd. 4.  [CERTIFICATION OF VOTE AND ESTABLISHMENT.] The 
county auditor must certify the vote on the question submitted.  
If a majority of those voting on the question favor establishing 
the proposed lake improvement district, the stay on establishing 
the district is lifted.  If a majority of those voting on the 
question do not favor establishing the proposed lake improvement 
district, the establishment is denied.  [378.47 s. 4] 
    Sec. 40.  [103B.551] [BOARD OF DIRECTORS.] 
    Subdivision 1.  [MEMBERSHIP.] After a lake improvement 
district is established, the county board or joint county 
authority shall appoint persons to serve as an initial board of 
directors for the district.  The number, qualifications, terms 
of office, removal, and filling of vacancies of directors shall 
be as provided in the order creating the board of directors.  
The initial and all subsequent boards of directors must include 
persons owning property within the district, and a majority of 
the directors must be residents of the district.  [378.51 s. 1] 
    Subd. 2.  [COMPENSATION.] The directors shall serve with 
compensation as determined by the property owners at the annual 
meeting and may be reimbursed for their actual expenses 
necessarily incurred in the performance of their duties in the 
manner provided for county employees.  [378.51 s. 2] 
    Subd. 3.  [POWERS.] County boards, joint county 
authorities, statutory and home rule cities, and towns may, by 
order, delegate the powers in this section to the board of 
directors of a district to be exercised within the district.  
Programs and services undertaken must be consistent with the 
statewide water and related land resources plan prepared by the 
commissioner of natural resources, and with regional water and 
related land resources plans.  A body of water may not be 
improved by using authority granted under this section unless 
the public has access to some portion of the shoreline.  County 
boards, joint county authorities, statutory and home rule 
cities, and towns may delegate their authority to a district 
board of directors to: 
    (1) acquire by gift or purchase an existing dam or control 
works that affects the level of waters in the district; 
    (2) construct and operate water control structures that are 
approved by the commissioner of natural resources under article 
7, section 22; 
    (3) undertake projects to change the course current or 
cross section of public waters that are approved by the 
commissioner of natural resources under article 7, section 22; 
    (4) acquire property, equipment, or other facilities, by 
gift or purchase to improve navigation; 
    (5) contract with a board of managers of a watershed 
district within the lake improvement district or the board of 
supervisors of a soil and water conservation district within the 
district for improvements under chapters 103C and 103D; 
    (6) undertake research to determine the condition and 
development of the body of water and the water entering it and 
to transmit the results of the studies to the pollution control 
agency and other interested authorities; 
    (7) develop and implement a comprehensive plan to eliminate 
water pollution; 
    (8) conduct a program of water improvement and 
conservation; 
    (9) construct a water, sewer, or water and sewer system in 
the manner provided by section 444.075 or other applicable laws; 
    (10) receive financial assistance from and participate in 
projects or enter into contracts with federal and state agencies 
for the study and treatment of pollution problems and related 
demonstration programs; 
    (11) make cooperative agreements with the United States or 
state government or other counties or cities to effectuate water 
and related land resource programs; 
    (12) maintain public beaches, public docks, and other 
public facilities for access to the body of water; 
    (13) provide and finance a government service of the county 
or statutory or home rule city that is not provided throughout 
the county or, if the government service is provided, the 
service is at an increased level within the district; and 
    (14) regulate water surface use as provided in article 7, 
sections 60 and 63, and article 9, section 10.  [378.51 s. 3] 
    Sec. 41.  [103B.555] [FINANCING.] 
    Subdivision 1.  [REVENUE.] The county board or joint county 
authority may undertake projects of improvement consistent with 
purposes of the district.  To finance projects and services of 
the district, the county board or joint county authority may:  
    (1) assess the costs of the projects upon benefited 
property within the district in the manner provided under 
chapter 429; 
    (2) impose service charges on the users of lake improvement 
district services within the district; 
    (3) issue obligations as provided in section 429.091; 
    (4) levy an ad valorem tax solely on property within the 
lake improvement district, to be appropriated and expended 
solely on projects of special benefit to the district; or 
    (5) impose or issue any combination of service charges, 
special assessments, obligations, and taxes.  [378.52 s. 1] 
    Subd. 2.  [TAX ADDITIONAL TO OTHER LEVIES.] A tax under 
subdivision 1 may be in addition to amounts levied on all 
taxable property in the county for the same or similar 
purposes.  [378.52 s. 2] 
    Subd. 3.  [BUDGETING FOR OPERATIONS.] The county board or 
county boards forming the joint county authority shall include 
appropriate provisions in their budget for the operation of a 
lake improvement district.  [378.52 s. 3] 
    Sec. 42.  [103B.561] [VOTING BY JOINT COUNTY BOARDS.] 
    If a lake improvement district has been established by 
order of the commissioner of natural resources under section 36, 
voting by county boards on joint actions of the lake improvement 
district shall be based on proportional representation for each 
county according to the proportion of the population of the lake 
improvement district residing within each county, and not on the 
basis of one vote per county or one vote per county board member 
unless each county or each board member represents substantially 
the same number of persons residing within the lake improvement 
district.  [378.53] 
    Sec. 43.  [103B.565] [ENFORCEMENT OF ORDINANCES.] 
    If a lake improvement district has been established by 
joint county action under section 35 or order of the 
commissioner of natural resources under section 36, ordinances 
and regulations adopted by joint action of the affected county 
boards may be enforced in any part of the lake improvement 
district by personnel of any of the affected counties.  [378.54] 
    Sec. 44.  [103B.571] [ANNUAL MEETING OF DISTRICT.] 
    Subdivision 1.  [TIME.] A district must have an annual 
meeting.  The first annual meeting shall be scheduled during the 
month of July or August, and be held annually in that period 
unless changed by vote of the previous annual meeting.  [378.545 
s. 1] 
    Subd. 2.  [NOTICE.] The annual meeting shall be preceded by 
two weeks' published notice and written notice mailed at least 
ten days in advance of the meeting to the county board or joint 
county authority, town boards and statutory and home rule 
charter cities wholly or partially within the district, the 
pollution control agency, commissioner of natural resources, and 
if there is a proposed project by the district having a cost in 
excess of $5,000, all property owners within the assessment area.
[378.545 s. 2] 
    Subd. 3.  [AGENDA.] At the annual meeting the district 
property owners present shall: 
    (1) elect one or more directors to fill vacancies in the 
board of directors; 
    (2) approve a budget for the fiscal year; 
    (3) approve or disapprove proposed projects by the district 
having a cost to the district in excess of $5,000; and 
    (4) take up and consider other business that comes before 
them.  [378.545 s. 3] 
    Subd. 4.  [ANNUAL REPORT.] Each year the board of directors 
shall prepare and file a report of the financial conditions of 
the district, the status of all projects in the district, the 
business transacted by the district, other matters affecting the 
interests of the district, and a discussion of the directors' 
intentions for the succeeding years.  Copies of the report shall 
be transmitted to the county board or joint county authority, 
town boards and city councils of statutory and home rule charter 
cities wholly or partially within the district, the commissioner 
of natural resources, and the pollution control agency by four 
months after the annual meeting.  [378.57] 
    Sec. 45.  [103B.575] [EXPANSION OF THE BOUNDARIES OF A LAKE 
IMPROVEMENT DISTRICT.] 
    The boundary of a district may be enlarged by complying 
with the procedures to establish a district under sections 32 to 
38.  [378.55] 
    Sec. 46.  [103B.581] [TERMINATION.] 
    Subdivision 1.  [PETITION.] Termination of a district may 
be initiated by petition requesting the termination of the 
district.  The petition must be signed by 26 percent of the 
property owners in a district within 30 days after receiving a 
petition.  The county board or joint county authority must set a 
time and place for a hearing on terminating the district.  
[378.56 s. 1] 
    Subd. 2.  [FINDINGS AND ORDER.] If the board or joint 
county authority determines that the existence of the district 
is no longer in the public welfare or public interest and it is 
not needed to accomplish the purpose of the lake improvement 
district act, the board or joint county authority shall make the 
findings and terminate the district by order.  On filing a 
certified copy of the findings and order with the secretary of 
state, pollution control agency, and commissioner of natural 
resources the district is terminated and ceases to be a 
political subdivision of the state.  [378.56 s. 1a] 
    Subd. 3.  [TERMINATION OF FINANCING.] If a district is 
terminated under subdivision 2, additional water and related 
land resource management programs may not be undertaken with 
money raised by a special tax within the district, and 
additional special water and related land resource management 
taxes may not be levied within the district.  If money raised by 
past special tax levies within the district has been exhausted, 
further operation and maintenance of existing programs may be 
financed by appropriations from the general revenue fund of an 
affected county.  [378.56 s. 2] 

                 LAKE MINNETONKA CONSERVATION DISTRICT 
    Sec. 47.  [103B.601] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 47 to 56.  
    Subd. 2.  [BOARD.] "Board" means the governing board of the 
directors of the district.  
    Subd. 3.  [DISTRICT.] "District" means the Lake Minnetonka 
conservation district.  
    Subd. 4.  [MUNICIPALITY.] "Municipality" means the home 
rule charter or statutory city of Minnetrista, Mound, Spring 
Park, Orono, Minnetonka Beach, Wayzata, Minnetonka, Woodland, 
Deephaven, Shorewood, Greenwood, Excelsior, Tonka Bay, or 
Victoria.  [MN L 1967, c 907, sec 1, 12] 
    Sec. 48.  [103B.605] [DISTRICT.] 
     Subdivision 1.  [ESTABLISHMENT.] The Lake Minnetonka 
conservation district established under Laws 1967, chapter 907, 
and Laws 1969, chapter 272, is a corporate and political body 
and a political subdivision of this state, and may sue and be 
sued, enter into contracts, and hold real and personal property 
for its purposes.  [MN L 1967, c 907, sec 6; MN L 1969, c 272, 
sec 5] 
    Subd. 2.  [DISTRICT IS AN EMPLOYER.] The district is an 
employer within the definition of section 176.011, subdivision 
10, and is included in the provisions of chapter 176.  [MN L 
1967, c 907, sec 9] 
    Subd. 3.  [DISTRICT IS PUBLIC CORPORATION.] The district is 
a public corporation within the definition of section 466.01 and 
is included in the provisions of chapter 466.  [MN L 1967, c 
907, sec 10] 
    Subd. 4.  [DISSOLUTION.] The district may be dissolved by 
the decision of the governing bodies of three-quarters of the 
municipalities in the district.  The decision of a town shall be 
made by the board of supervisors of the town.  [MN L 1967, c 
907, sec 11] 
    Sec. 49.  [103B.611] [BOARD.] 
    Subdivision 1.  [COMPOSITION.] The district is governed by 
a board composed of members elected by the governing bodies of 
the municipalities included in the district.  Each municipality 
shall elect one member.  [MN L 1967, c 907, sec 2, subd 2; MN L 
1969, c 272, sec 1] 
    Subd. 2.  [TERM.] The term of office of each board member 
is three years.  [MN L 1967, c 907, sec 2, subd 2] 
    Subd. 3.  [POWERS.] Subject to the provisions of chapters 
97A, 103D, 103E, 103G, and 115, and the rules and regulations of 
the respective agencies and governing bodies vested with 
jurisdiction and authority under those chapters, the district 
has the following powers:  
    (1) to regulate the types of boats permitted to use the 
lake and set service fees; 
    (2) to regulate, maintain, and police public beaches, 
public docks, and other public facilities for access to the lake 
within the territory of the municipalities, provided that a 
municipality may supersede the district's action under this 
clause by adopting an ordinance specifically referring to the 
district's action by one year after the district's action; 
    (3) to limit by rule the use of the lake at various times 
and the use of various parts of the lake; 
    (4) to regulate the speed of boats on the lake and the 
conduct of other activities on the lake to secure the safety of 
the public and the most general public use; 
     (5) to contract with other law enforcement agencies to 
police the lake and its shore; 
    (6) to regulate the construction, installation, and 
maintenance of permanent and temporary docks and moorings 
consistent with federal and state law; 
    (7) to regulate the construction and use of mechanical and 
chemical means of deicing the lake and to regulate mechanical 
and chemical means of removal of weeds and algae from the lake; 
     (8) to regulate the construction, configuration, size, 
location, and maintenance of commercial marinas and their 
related facilities including parking areas and sanitary 
facilities.  The regulation shall be consistent with the 
applicable municipal building codes and zoning ordinances where 
the marinas are located; 
    (9) to contract with other governmental bodies to perform 
any of the functions of the district; 
    (10) to undertake research to determine the condition and 
development of the lake and the water entering it and to 
transmit their studies to the pollution control agency and other 
interested authorities, and to develop a comprehensive program 
to eliminate pollution; 
    (11) to receive financial assistance from and join in 
projects or enter into contracts with federal and state agencies 
for the study and treatment of pollution problems and 
demonstration programs related to them; and 
    (12) to petition the board of managers of a watershed 
district in which the lake conservation district is located for 
improvements under article 4, section 54; a bond is not required 
of the lake conservation district.  [MN L 1967, c 907, sec 3; MN 
L 1969, c 272, sec 2] 
    Subd. 4.  [BYLAWS AND BOARD PROCEDURES.] The board shall 
adopt a seal, bylaws for the regulation of the affairs of the 
district, and rules of procedure to govern the board's actions 
that are consistent with law.  [MN L 1967, c 907, sec 7] 
    Sec. 50.  [103B.615] [DISTRICT OFFICERS.] 
    Subdivision 1.  [ELECTION AND TERMS.] (a) The board shall 
elect from its membership a chairperson to serve for a period of 
one year and shall also elect a secretary and a treasurer.  
    (b) The officers hold office at the pleasure of the board.  
[MN L 1967, c 907, sec 8, subd 1] 
    Subd. 2.  [COMPENSATION.] The board shall fix the 
compensation of the officers.  [MN L 1967, c 907, sec 8, subd 1] 
    Subd. 3.  [OTHER OFFICERS AND EMPLOYEES.] The board may 
appoint other officers, agents, and employees who shall perform 
duties and receive compensation as the board determines and are 
removable at the pleasure of the board.  [MN L 1967, c 907, sec 
8, subd 4] 
    Sec. 51.  [103B.621] [TREASURER.] 
    Subdivision 1.  [BOND.] Before taking office, the treasurer 
shall give bond to the district in an amount to be determined by 
the board.  [MN L 1967, c 907, sec 8, subd 2] 
    Subd. 2.  [DUTIES.] (a) The treasurer shall receive and is 
responsible for all money of the district.  The money of the 
district shall be considered public funds.  
    (b) The treasurer shall disburse the funds of the district 
in accordance with rules of the board.  [MN L 1967, c 907, sec 
8, subd 2] 
    Subd. 3.  [INVESTMENTS.] (a) If there are funds not 
currently needed, the treasurer may invest the funds in treasury 
bonds, certificates of indebtedness, bonds or notes of the 
United States of America, or bonds, notes or certificates of 
indebtedness of the state of Minnesota.  The bonds, 
certificates, or notes must mature by three years from the date 
of purchase.  If the board determines that invested funds are 
needed for current purposes before the maturity dates of the 
bonds, certificates, or notes, the board shall notify the 
treasurer and the treasurer shall order the sale or convert the 
bonds, certificates, or notes into cash in the amount determined 
by the board.  
    (b) The interest and profit on investments shall be 
credited to and constitute a part of the funds of the district.  
[MN L 1967, c 907, sec 8, subd 2] 
    Subd. 4.  [FINANCIAL STATEMENT.] The treasurer shall keep 
an account of the funds received and disbursed.  At least once a 
year at times designated by the board, the treasurer must file a 
financial statement with the municipalities forming the district 
showing in appropriate and identifiable groupings: 
    (1) the receipts and disbursements since the last approved 
financial statement; 
    (2) the money on hand; 
    (3) the purposes for which the money of the district is 
appropriated; 
    (4) an account of all bonds, certificates, or notes 
purchased and the funds from which they were purchased; and 
    (5) the interest and profit that has accrued from 
investments.  [MN L 1967, c 907, sec 8, subd 2] 
    Subd. 5.  [COMPENSATION FOR CLERKS.] The district may pay 
to the treasurer compensation to cover hiring clerks to carry 
out the treasurer's duties.  [MN L 1967, c 907, sec 8, subd 2] 
    Sec. 52.  [103B.625] [EXECUTIVE DIRECTOR.] 
    Subdivision 1.  [APPOINTMENT.] The board may appoint an 
executive director for the district.  The executive director 
shall serve at the pleasure of the board and shall receive 
compensation as determined by the board.  [MN L 1967, c 907, sec 
8, subd 3] 
    Subd. 2.  [DUTIES AND POWERS.] Under the supervision of the 
board, the executive director: 
    (1) is the executive and operating officer of the district; 
    (2) is responsible for the operation, management, and 
promotion of all activities with which the district is charged 
and other duties prescribed by the board; and 
    (3) has the powers necessarily incident to the performance 
of the duties of the executive director and other powers granted 
by the board, but without authority to incur liability or make 
expenditures on behalf of the district without general or 
specific directions by the board, as shown by the bylaws or 
minutes of its meetings.  [MN L 1967, c 907, sec 8, subd 3] 
    Sec. 53.  [103B.631] [PERFORMANCE OF DUTIES AND EXPENSES.] 
    Subdivision 1.  [DUTIES MAY BE PERFORMED BY MUNICIPAL 
EMPLOYEES.] The duties of the district may be executed by 
employees of the municipalities.  [MN L 1967, c 907, sec 4] 
    Subd. 2.  [EXPENSES.] The expenses of the district shall be 
borne by the municipalities.  The portion of the expenses of the 
district borne by each municipality must be in proportion to its 
net tax capacity provided that the portion of any one 
municipality may not be more than 20 percent of the total 
expense or less than $200.  [MN L 1967, c 907, sec 4; MN L 1969, 
c 272, sec 3] 
    Sec. 54.  [103B.635] [FUNDING OF DISTRICT.] 
    Subdivision 1.  [BUDGET.] The board must, on or before July 
1 each year, prepare and submit a detailed budget of the 
district's needs for the next calendar year to the governing 
body of each municipality in the district with a statement of 
the proportion of the budget to be provided by each 
municipality.  The governing body of each municipality in the 
district shall review the budget and the board, upon notice from 
a municipality, must hear objections to the budget.  After the 
hearing, the board may modify or amend the budget.  Notice must 
be given to the municipalities of modifications or amendments.  
[MN L 1967, c 907, sec 5] 
    Subd. 2.  [MUNICIPAL FUNDING OF DISTRICT.] (a) The 
governing body or board of supervisors of each municipality in 
the district must provide the funds necessary to meet its 
proportion of the total cost determined by the board.  
    (b) A municipality may raise the funds by any means that 
the municipality has to raise funds.  The municipalities may 
each levy a tax not to exceed .00242 percent of taxable market 
value on the taxable property located in the district for 
funding the district.  The levy must be within all other 
limitations provided by law.  
    (c) The funds must be deposited in the treasury of the 
district in amounts and at times as the treasurer of the 
district requires.  [MN L 1967, c 907, sec 5; MN L 1969, c 272, 
sec 4] 
      Sec. 55.  [103B.641] [REGULATIONS OF DISTRICT.] 
    Subdivision 1.  [AUTHORITY AND EFFECT.] (a) The district 
may adopt rules and regulations to effectuate the purpose of its 
establishment and the powers granted to the district.  
     (b) The rules and regulations have the effect of an 
ordinance if declared by the board of directors of the district 
and stated in the rule or regulation.  
     (c) The rules and regulations of the district may be 
enforced by the district by injunction in addition to penalties 
under this section.  [MN L 1969, c 272, sec 6] 
    Subd. 2.  [ADOPTION PROCEDURE.] (a) A rule or regulation 
must be suitably titled.  
    (b) A rule or regulation must be adopted by a majority vote 
of all of the members of the board of directors.  The adopted 
rule or regulation must be signed by the chair, attested by the 
secretary of the board, and published once in an official 
newspaper.  
    (c) Proof of publication must be attached to and filed with 
the rule or regulation.  Each rule and regulation must be 
recorded in the rule and regulation book by 20 days after its 
publication.  
    Subd. 3.  [PENALTY.] A person who violates a rule or 
regulation that has the force and effect of an ordinance is 
guilty of a misdemeanor and subject to a sentence of not more 
than 90 days plus costs or a fine of not more than $100 plus 
costs.  [MN L 1969, c 272, sec 6] 
    Sec. 56.  [103B.645] [PROSECUTION OF VIOLATIONS.] 
    Subdivision 1.  [COMPLAINT FOR VIOLATION.] A prosecution 
for a violation of a rule or regulation shall be brought in the 
name of the district upon complaint and warrant as in other 
criminal cases.  If the accused is arrested without a warrant, a 
written complaint shall be made, to which the accused shall be 
required to plead, and a warrant shall issue on the complaint.  
The warrant and all other process in such cases shall be 
directed for service to a police officer, court officer, 
marshal, constable, or sheriff of any of the municipalities in 
the district.  [MN L 1969, c 272, sec 7] 
    Subd. 2.  [COMPLAINT.] It is a sufficient pleading of the 
rules and regulations of the district to refer to them by 
section and number or chapter, or any other way that clearly 
reflects the rules and regulations that are the subject of the 
pleading.  The rules and regulations shall have the effect of 
general laws within the district and need not be given in 
evidence upon the trial of an action.  
    Subd. 3.  [APPEAL TO DISTRICT COURT.] Appeals may be taken 
from the district court in the same manner as from judgments in 
civil actions.  [MN L 1969, c 272, sec 7] 

                 WHITE BEAR LAKE CONSERVATION DISTRICT 
    Sec. 57.  [103B.651] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 55 to 63. 
    Subd. 2.  [BOARD.] "Board" means the governing board of the 
district.  
    Subd. 3.  [DISTRICT.] "District" means the White Bear Lake 
conservation district.  
    Subd. 4.  [MUNICIPALITY.] "Municipality" means the city of 
White Bear Lake, the town of White Bear, the city of Birchwood, 
the city of Mahtomedi, or the city of Dellwood.  [MN L 1971, c 
355, sec 1] 
    Sec. 58.  [103B.655] [DISTRICT.] 
    Subdivision 1.  [ESTABLISHMENT.] The White Bear Lake 
conservation district established under Laws 1971, chapter 355, 
as amended by Laws 1974, chapter 111, and Laws 1977, chapter 
322, is a corporate and political body, and may sue and be sued, 
enter into contracts, and hold real and personal property for 
its purposes.  [MN L 1971, c 355, sec 6] 
    Subd. 2.  [DISTRICT IS EMPLOYER.] The district is an 
employer within the definition of section 176.011, subdivision 
10, and is included in the provisions of chapter 176.  [MN L 
1971, c 355, sec 9] 
    Subd. 3.  [DISTRICT IS POLITICAL AND CORPORATE BODY.] The 
district is a public corporation and a political subdivision of 
the state.  The district is also within the definition of 
section 466.01, and is included in the provisions of chapter 
466.  [MN L 1971, c 355, sec 10] 
    Subd. 4.  [DISSOLUTION.] The district may be dissolved by 
the decision of the governing bodies of four of the 
municipalities in the district.  The decision of a town shall be 
made by the board of supervisors of the town.  [MN L 1971, c 
355, sec 11] 
    Sec. 59.  [103B.661] [BOARD.] 
    Subdivision 1.  [MEMBERSHIP.] (a) The district shall be 
governed by the board composed of members elected by the 
governing bodies of the municipalities included in the 
district.  Each municipality shall elect two members.  
     (b) The term of office of each member shall be three 
years.  [MN L 1971, c 355, sec 2, subd 2; MN L 1977, c 322, sec 
2] 
    Subd. 2.  [POWERS.] Subject to the provisions of chapters 
97A, 103D, 103E, 103G, and 115, and the rules and regulations of 
the respective agencies and governing bodies vested with 
jurisdiction and authority under those chapters, the district 
has the following powers to: 
    (1) regulate the types of boats permitted to use the lake; 
    (2) limit the use of motors, including their types and 
horsepower, on the lake; 
    (3) regulate, maintain, and police public beaches, public 
docks, and other public facilities for access to the lake within 
the territory of the municipalities; 
    (4) limit by rule the use of the lake at various times and 
the use of various parts of the lake; 
    (5) regulate the speed of boats on the lake and the conduct 
of other activities on the lake to secure the safety of the 
public and the most general public use; 
    (6) contract with other law enforcement agencies to police 
the lake and its shores; 
    (7) regulate the construction, installation, and 
maintenance of permanent and temporary docks and moorings 
consistent with federal and state law; 
    (8) regulate the construction and use of mechanical and 
chemical means of deicing the lake and to regulate the 
mechanical and chemical means of removal of weeds and algae from 
the lake; 
    (9) regulate the construction, configuration, size, 
location, and maintenance of commercial marinas and their 
related facilities including parking areas and sanitary 
facilities.  The regulation shall be consistent with the 
applicable municipal building codes and zoning ordinances where 
said marinas are situated; 
    (10) contract with other governmental bodies to perform any 
of the functions of the district; 
    (11) undertake research to determine the condition and 
development of the lake and the water entering it and to 
transmit their studies to the pollution control agency and other 
interested authorities; and to develop a comprehensive program 
to eliminate pollution; 
    (12) receive financial assistance from and join in projects 
or enter into contracts with federal and state agencies for the 
study and treatment of pollution problems and demonstration 
programs related to them; 
    (13) petition the board of managers of a watershed district 
where the White Bear Lake conservation district is located for 
improvements under article 4, section 54, for which a bond may 
not be required of the district; and 
    (14) to require the submission of all plans pertaining to 
or affecting construction or other lakeshore use on any lot or 
parcel of land abutting the shoreline including:  length of 
setback from the shoreline, adjoining property, or any street or 
highway; problems of population density; possible water, air or 
visual pollution; or height of construction.  The board shall 
have 60 days after submission of plans or any part thereof for 
review.  If, within 60 days of submission the board finds the 
plan or any part is inconsistent with its plans or ordinances, 
it may recommend that the plan or any part be revised and 
resubmitted.  [MN L 1971, c 355, sec 3; MN L 1974, c 111, sec 1] 
    Subd. 3.  [BYLAWS AND BOARD PROCEDURES.] The board shall 
adopt a seal, bylaws for the regulation of the affairs of the 
district, and rules of procedure to govern the board's actions 
that are consistent with law.  [MN L 1971, c 355, sec 7] 
    Sec. 60.  [103B.665] [DISTRICT OFFICERS AND EMPLOYEES.] 
    Subdivision 1.  [ELECTION AND TERMS.] (a) The board shall 
elect from its membership the following officers to serve for a 
period of one year:  chair, vice-chair, secretary, and 
treasurer.  The offices of secretary and treasurer shall be 
combined unless a resolution is adopted to the contrary by the 
board prior to the election.  
    (b) The officers shall hold office at the pleasure of the 
board.  [MN L 1971, c 355, sec 8, subd 1; MN L 1977, c 322, sec 
3] 
    Subd. 2.  [COMPENSATION.] The board shall set the 
compensation of the officers.  [MN L 1971, c 355, sec 8, subd 1] 
    Subd. 3.  [EMPLOYEES.] The board may appoint other 
officers, agents, and employees who shall perform duties and 
receive compensation as the board determines and are removable 
at the pleasure of the board.  [MN L 1971, c 355, sec 8, subd 4] 
    Sec. 61.  [103B.671] [TREASURER.] 
    Subdivision 1.  [BOND.] Before taking office, the treasurer 
shall give bond to the district in an amount to be determined by 
the board.  [MN L 1971, c 355, sec 8, subd 2] 
    Subd. 2.  [DUTIES.] (a) The treasurer shall receive and is 
responsible for the money of the district.  The money of the 
district shall be considered public funds.  
    (b) The treasurer shall disburse the funds of the district 
in accordance with rules of the board.  [MN L 1971, c 355, sec 
8, subd 2] 
    Subd. 3.  [INVESTMENTS.] (a) If funds are not currently 
needed, the treasurer may invest the funds in treasury bonds, 
certificates of indebtedness, bonds or notes of the United 
States of America, or bonds, notes, or certificates of 
indebtedness of the state of Minnesota.  The bonds, notes, or 
certificates must mature by three years from the date of 
purchase.  
    (b) If the board determines that invested funds are needed 
for current purposes before the maturity dates of the securities 
held, the board shall certify to the treasurer and the treasurer 
shall order the sale or conversion of the bonds, notes, or 
certificates needed into cash.  
    (c) The interest and profit on investments shall be 
credited to and constitute a part of the funds of the district.  
[MN L 1971, c 355, sec 8, subd 2] 
    Subd. 4.  [ACCOUNTING AND RECORDS.] The treasurer shall 
keep an account of the funds received and disbursed.  At least 
once a year, at times designated by the board, the treasurer 
must file with the municipalities forming the district a 
financial statement of the district showing in appropriate and 
identifiable groupings:  
    (1) the receipts and disbursements since the last approved 
statements; 
    (2) the money on hand and the purposes for which the money 
is appropriated; and 
    (3) an account of bonds, notes, and certificates purchased, 
the funds from which they were purchased, and the interest and 
profit accrued on the investment.  [MN L 1971, c 355, sec 8, 
subd 2] 
    Subd. 5.  [COMPENSATION FOR CLERKS.] The district may pay 
to the treasurer compensation to cover hiring clerks and to 
carry out the treasurer's duties.  [MN L 1971, c 355, sec 8, 
subd 2] 
    Sec. 62.  [103B.675] [EXECUTIVE DIRECTOR.] 
    Subdivision 1.  [APPOINTMENT.] (a) The board may appoint an 
executive director.  
    (b) The executive director is the executive and operating 
officer of the district, shall serve at the pleasure of the 
board, and shall receive compensation set by the board.  [MN L 
1971, c 355, sec 8, subd 3] 
    Subd. 2.  [DUTIES AND POWERS.] (a) Under the supervision of 
the board, the executive director is responsible for the 
operation, management, and promotion of all activities of the 
district and other duties prescribed by the governing board.  
    (b) The executive director has the powers necessarily 
incident to the performance of the executive director's duties 
and other powers granted by the board, except the director does 
not have authority to incur liability or make expenditures on 
behalf of the district without general or specific directions by 
the board as shown by the bylaws or minutes of the board's 
meetings.  [MN L 1971, c 355, sec 8, subd 3] 
    Sec. 63.  [103B.681] [RULES.] 
    Subdivision 1.  [AUTHORITY.] The district may adopt rules 
to effectuate the purposes of its establishment and the powers 
granted to the district.  All rules must be suitably entitled. 
[MN L 1971, c 355, sec 12, subd 1] 
    Subd. 2.  [EFFECT OF RULES.] The rules have the force and 
effect of an ordinance if declared by the board and stated in 
the rules.  [MN L 1971, c 355, sec 12, subd 1] 
    Subd. 3.  [PROCEDURE.] (a) A rule must be enacted by a 
majority vote of all the members of the board.  The rule must be 
signed by the chairperson and attested by the secretary.  
    (b) The rule must be published once in official newspapers 
of Washington and Ramsey counties.  Proof of publication shall 
be attached to and filed with the rule.  
    (c) A rule must be recorded in the rule book within 20 days 
after its publication.  [MN L 1971, c 355, sec 12, subd 2] 
    Subd. 4.  [CRIMINAL PENALTY.] (a) A violation of rule is a 
misdemeanor and punishable by a sentence of not more than 90 
days plus costs or a fine of not more than $300 plus costs.  [MN 
L 1971, c 355, sec 12, subd 2] 
    (b) All prosecutions for violations of rules shall be 
brought in the name of the district upon complaint and warrant 
as in other criminal cases.  [MN L 1971, c 355, sec 13, subd 1] 
    Subd. 5.  [INJUNCTION.] The rules may be enforced by the 
district by injunction in addition to other penalties provided.  
[MN L 1971, c 355, sec 12, subd 1] 
     Sec. 64.  [103B.683] [PROSECUTION OF VIOLATIONS.] 
    Subdivision 1.  [COMPLAINT FOR VIOLATION.] A prosecution 
for a violation of a rule or regulation shall be brought in the 
name of the district upon complaint and warrant as in other 
criminal cases.  If the accused is arrested without a warrant, a 
written complaint shall be made, to which the accused shall be 
required to plead, and a warrant shall issue on the complaint.  
The warrant and all other process in such cases shall be 
directed for service to a police officer, court officer, 
marshal, constable, or sheriff of any of the municipalities in 
the district.  [MN L 1971, c 355, sec 13] 
    Subd. 2.  [COMPLAINT.] It is a sufficient pleading of the 
rules and regulations of the district to refer to them by 
section and number or chapter, or any other way that clearly 
reflects the rules and regulations that are the subject of the 
pleading.  The rules and regulations shall have the effect of 
general laws within the district and need not be given in 
evidence upon the trial of an action.  
    Subd. 3.  [APPEAL TO DISTRICT COURT.] Appeals may be taken 
from the district court in the same manner as from judgments in 
civil actions.  [MN L 1971, c 355, sec 13] 
    Sec. 65.  [103B.685] [PERFORMANCE OF DUTIES AND EXPENSES.] 
    Subdivision 1.  [DUTIES.] The duties of the district may be 
executed by employees of the municipalities.  [MN L 1971, c 355, 
sec 4] 
    Subd. 2.  [EXPENSES.] The expenses of the district shall be 
borne by the municipalities.  The portion of the expenses of the 
district borne by each municipality must be in proportion to its 
net tax capacity, except a municipality's portion may not be 
less than $200 per year.  [MN L 1971, c 355, sec 4; MN L 1974, c 
111, sec 2] 
    Sec. 66.  [103B.691] [FUNDING OF DISTRICT.] 
    Subdivision 1.  [BUDGET.] The board must, on or before July 
1 each year, prepare and submit a detailed budget of the 
district's needs for the next calendar year to the governing 
body of each municipality in the district with a statement of 
the proportion of the budget to be provided by each 
municipality.  The governing body of each municipality in the 
district shall review the budget and the board upon notice from 
a municipality must hear objections to the budget.  After the 
hearing, the board may modify or amend the budget.  Notice must 
be given to the municipalities of modifications or amendments.  
    Subd. 2.  [MUNICIPAL FUNDING OF DISTRICT.] (a) The 
governing body or board of supervisors of each municipality in 
the district shall provide the funds necessary to meet its 
proportion of the total cost to be borne by the municipalities 
as finally certified by the board.  
    (b) The municipality's funds may be raised by any means 
within the authority of the municipality.  The municipalities 
may each levy a tax not to exceed .02418 percent of taxable 
market value on the taxable property located in the district to 
provide the funds.  The levy shall be within all other 
limitations provided by law.  
    (c) The funds must be deposited into the treasury of the 
district in amounts and at times as the treasurer of the 
district requires.  [MN L 1971, c 355, sec 5] 

                               ARTICLE 3 

                              CHAPTER 103C 

                 SOIL AND WATER CONSERVATION DISTRICTS 
    Section 1.  [103C.001] [EFFECT OF CHAPTER 103C ON WATER 
LAW.] 
    Chapters 103A, 103B, 103C, 103D, 103E, 103F, and 103G 
constitute the water law of this state and may be cited as the 
water law.  
     Sec. 2.  [103C.005] [SOIL AND WATER CONSERVATION POLICY.] 
    Improper land use practices have caused serious wind and 
water erosion of the land of this state, the runoff of polluting 
materials, increased costs to maintain agricultural 
productivity, increased energy costs and increased flood 
damage.  Land occupiers have the responsibility to implement 
practices to correct these conditions and conserve the soil and 
water resources of the state.  It is the policy of the state to 
encourage land occupiers to conserve soil and water resources 
through the implementation of practices that effectively reduce 
or prevent erosion, sedimentation, siltation and agriculturally 
related pollution in order to preserve natural resources, ensure 
continued soil productivity, control floods, prevent impairment 
of dams and reservoirs, assist in maintaining the navigability 
of rivers and harbors, preserve wildlife, protect the tax base, 
and protect public lands.  [40.02] 
    Sec. 3.  [103C.009] [CITATION.] 
    This chapter may be cited as the soil and water 
conservation district law.  [40.15] 
    Sec. 4.  [103C.101] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  [40.01 s. 1] 
    Subd. 2.  [APPROPRIATE AGENCIES.] "Appropriate agencies" 
means local, state, or federal agencies that possess expertise, 
involvement, or authority concerning the use and development of 
land and water resources, but does not include districts or the 
state board.  [40.01 s. 15] 
    Subd. 3.  [DISTRICT.] "District" means a soil and water 
conservation district.  [40.01 s. 2] 
    Subd. 4.  [DISTRICT BOARD.] "District board" means the 
board of supervisors of a soil and water conservation district.  
[40.01 s. 3] 
    Subd. 5.  [DUE NOTICE.] "Due notice" means notice published 
at least twice, with an interval of at least seven days between 
the two publication dates, in a legal newspaper, and by posting 
at three conspicuous places within an appropriate area.  Posting 
must include, if possible, posting at public places where it is 
customary to post notices concerning county or municipal 
affairs.  A hearing held pursuant to a notice at the time and 
place designated in the notice may be adjourned, from time to 
time, without renewing the notice for the adjourned dates.  
[40.01 s. 12] 
    Subd. 6.  [FEDERAL.] "Federal" means the United States, the 
soil conservation service of the United States Department of 
Agriculture, and agencies or instrumentalities, corporate or 
otherwise, of the United States.  [40.01 s. 9] 
    Subd. 7.  [GOVERNMENT.] "Government" means the state or the 
United States, or an agency or instrumentality of the state or 
the United States.  [40.01 s. 10] 
    Subd. 8.  [LAND OCCUPIER.] "Land occupier" means a person, 
corporation, or legal entity that holds title to or is in 
possession of land within a district as an owner, lessee, 
tenant, or otherwise.  [40.01 s. 11] 
    Subd. 9.  [NOMINATING PETITION.] "Nominating petition" 
means a petition filed under sections 13, subdivision 1, and 14, 
subdivision 2, to nominate candidates for the office of 
supervisor.  [40.01 s. 6] 
    Subd. 10.  [SOIL AND WATER CONSERVATION DISTRICT.] "Soil 
and water conservation district" means a governmental 
subdivision organized under this chapter.  [40.01 s. 2] 
    Subd. 11.  [STATE AGENCY.] "State agency" means a political 
subdivision, agency, or instrumentality, corporate or otherwise, 
of the state.  [40.01 s. 8] 
    Subd. 12.  [STATE BOARD.] "State board" means the board of 
water and soil resources.  [40.01 s. 4] 
    Subd. 13.  [SUPERVISOR.] "Supervisor" means a member of a 
district board.  [40.01 s. 3] 
    Subd. 14.  [WATERSHED PROJECT.] "Watershed project" means a 
project that is approved and authorized to be carried out by the 
district in a watershed area in accordance with a watershed work 
plan.  [40.01 s. 14] 
    Subd. 15.  [WATERSHED WORK PLAN.] "Watershed work plan" 
means a plan for constructing works of improvement in a 
watershed area, including structural and land treatment measures 
for flood prevention or the conservation, development, 
utilization, and disposal of water that is developed by the 
district, with or without federal assistance.  [40.01 s. 13] 

                 SOIL AND WATER CONSERVATION DISTRICTS 
    Sec. 5.  [103C.201] [FORMATION OF SOIL AND WATER 
CONSERVATION DISTRICTS.] 
    Subdivision 1.  [PETITION.] (a) Twenty-five land occupiers 
in an area proposed to be organized into a district may file a 
petition with the state board requesting that a soil and water 
conservation district be organized to function in the area 
described in the petition.  The petition must state: 
    (1) the proposed name of the district; 
    (2) that there is need, in the interest of the public 
health, safety, and welfare, for a district in the described 
area; 
    (3) a description of the area proposed to be organized as a 
district, which need not be by metes and bounds or legal 
subdivision, but may be by general description that identifies 
the area; 
    (4) a request that the state board define the boundaries 
for the district; 
    (5) a request for a referendum to be held in the defined 
territory on the question of the creation of a district in the 
territory; and 
    (6) a request by the state board to determine that a 
district be established.  
    (b) If more than one petition is filed covering parts of 
the same area, the state board may consolidate the petitions.  
[40.04 s. 1] 
    Subd. 2.  [HEARINGS.] (a) By 30 days after a petition has 
been filed with the state board, the state board may give due 
notice of a proposed hearing, to be held by the state board or a 
designated agent, on: 
    (1) the question of the desirability and necessity, in the 
interest of the public health, safety, and welfare, for the 
establishment of a district; 
    (2) the appropriate boundaries of the district; 
    (3) the propriety of the petition and other proceedings 
taken under this section; and 
    (4) other questions relevant to clauses (1), (2), and (3).  
    (b) Land occupiers in the area described in the petition 
and in the area considered for addition to the described area 
and other interested parties may attend the hearing and be 
heard.  If after a hearing, the state board determines it may be 
desirable to include in the proposed district area outside the 
area where notice of the hearing was given, the hearing must be 
adjourned and due notice of the continued hearing must be given 
throughout the entire area considered for inclusion in the 
district, and the continued hearing held.  [40.04 s. 2] 
    Subd. 3.  [CONSIDERATIONS FOR DISTRICT ESTABLISHMENT.] (a) 
After the hearing is complete, if the state board determines, on 
the information presented at the hearing and other relevant 
information, that there is a need, in the interest of the public 
health, safety, and welfare, for a district to function in the 
area considered at the hearing, the state board shall make and 
record the determination and define the district boundaries by 
metes and bounds or by legal subdivisions.  In making the 
determination and in defining the boundaries, the state board 
shall consider the public policy in article 1, section 6, and: 
    (1) the topography of the area considered and of the state; 
    (2) the composition of its soils; 
    (3) the distribution of erosion; 
    (4) the prevailing land use practices; 
    (5) the desirability and necessity of including within the 
boundaries the particular lands under consideration; 
    (6) the benefits the lands may receive from being included; 
    (7) the relation of the proposed area to existing 
watersheds and agricultural regions and other soil and water 
conservation districts organized or proposed for organization; 
and 
    (8) other relevant physical, geographical, and economic 
factors.  
    (b) The area included in a district need not be contiguous. 
[40.04 s. 2] 
    Subd. 4.  [DENIAL OF PETITION.] (a) If the state board 
determines, after the hearing and consideration of the 
information, that there is not a need for a district to function 
in the area, the state board must make and record the 
determination and deny the petition.  
    (b) Subsequent petitions to establish a district in 
substantially the same area may not be filed until six months 
after the date of the denial of a petition.  [40.04 s. 2] 
     Subd. 5.  [REFERENDUM FOR DISTRICT ESTABLISHMENT.] (a) 
After the state board has made and recorded a determination that 
there is a need for a district in a particular area and has 
defined the boundaries, the state board shall consider whether 
the operation of a district within the boundaries is 
administratively feasible.  To assist the state board to 
determine the feasibility, the state board shall, within a 
reasonable time after entry of the finding that there is a need 
for the proposed district, give notice of and hold a referendum 
within the proposed district on the creation of the district.  
     (b) The question shall be submitted by ballots with: 
    (1) the words printed "For creation of a soil and water 
conservation district of the lands described below in the county 
(or counties) of ........... and .........." and "Against 
establishment of a soil and water conservation district of the 
lands described below in the county (or counties) of ........ 
and ........"; 
    (2) a square before each proposition and a direction to 
insert an X mark in the square before one proposition or the 
other as the voter may favor or oppose establishment of the 
district; and 
    (3) the boundaries of the proposed district.  
     (c) Only land occupiers in the boundaries of the proposed 
district, as determined by the state board, may vote in the 
referendum.  [40.04 s. 3] 
    Subd. 6.  [ADMINISTRATION OF REFERENDUM.] The state board 
shall pay the expenses for the notices and the conduct of the 
hearing and referendum, and supervise their conduct.  The state 
board shall issue rules governing the conduct of hearings and 
referenda, and providing for the registration, before the date 
of the referendum, of all eligible voters, or prescribing some 
other appropriate procedure to determine eligible voters.  
Informalities in the conduct of a referendum or in a matter 
related to it do not invalidate the referendum or its result if 
notice of it has been given substantially as provided by this 
section and the referendum has been fairly conducted.  [40.04 s. 
4] 
    Subd. 7.  [DETERMINATION AFTER REFERENDUM.] (a) The state 
board shall publish the result of the referendum and then 
determine whether the operation of a district in the defined 
boundaries is administratively feasible.  In making the 
determination the state board must consider the policy in 
article 1, section 6, and: 
    (1) the attitudes of the land occupiers in the defined 
boundaries; 
    (2) the number of land occupiers eligible to vote in the 
referendum who have voted; 
    (3) the proportion of the votes cast in the referendum in 
favor of establishing the district to the total number of votes 
cast; 
    (4) the approximate wealth and income of the land occupiers 
of the proposed district; 
    (5) the probable expense of carrying on erosion-control 
operations within the district; and 
    (6) other relevant economic and social factors.  The state 
board may not determine that the operation of the proposed 
district within the defined boundaries is administratively 
feasible unless a majority of the votes cast in the referendum 
on establishment of the district have been cast in favor of 
establishing the district.  
    (b) If the state board determines that the operation of the 
district is not administratively feasible, the state board shall 
record the determination and deny the petition. [40.04 s. 5] Six 
months after the date of entry of a determination by the state 
board that operation of a proposed district is not 
administratively feasible, a new petition may be filed and a new 
proceeding started.  [40.04 s. 7] 
    (c) If the state board determines that the operation of the 
district is administratively feasible, it shall record the 
determination and proceed with the establishment and 
organization of the district.  [40.04 s. 5] 
    Subd. 8.  [APPLICATION BY SUPERVISORS TO SECRETARY OF 
STATE.] (a) The district shall be a governmental subdivision of 
this state and a public body corporate and politic after the 
actions in this subdivision are taken.  
     (b) If the state board determines that the operation of the 
proposed district within the defined boundaries is 
administratively feasible, the state board must appoint two 
supervisors to act, with the three elected supervisors, as the 
district board.  
     (c) The two appointed supervisors shall sign and present an 
application to the secretary of state with the following 
recitals: 
     (1) a petition for the establishment of a district was 
filed with the state board; 
    (2) the proper proceedings were taken relating to the 
petition; 
    (3) the application is being filed to complete the 
organization of the district as a governmental subdivision and a 
public body, corporate or politic; 
     (4) the state board has appointed the signers as 
supervisors; 
     (5) the name and official residence of each supervisor, 
with a certified copy of the supervisor's appointment; 
     (6) the term of office of each supervisor; 
     (7) the name proposed for the district; and 
     (8) the location of the principal office of the district 
board.  
    (d) The application shall be subscribed and sworn to by 
each supervisor before an officer authorized by state law to 
take oaths.  The officer shall certify upon the application that 
the officer has personal knowledge of the supervisors, that they 
are the supervisors named in the application, and that each 
supervisor has signed the application in the officer's 
presence.  [40.04 s. 6] 
    Subd. 9.  [CERTIFIED STATEMENT OF STATE BOARD.] (a) The 
application shall be accompanied by a certified statement of 
recitals by the state board, that: 
     (1) a petition was filed, notice issued, and hearing held; 
     (2) the state board determined that there is need, in the 
interest of the public health, safety, and welfare, for a 
district to function in the proposed area; 
     (3) the state board defined the district's boundaries; 
     (4) notice was given and a referendum held on the question 
of establishing a district; 
     (5) a majority of the votes cast in the referendum were in 
favor of establishing a district; and 
     (6) after the referendum the state board determined that 
the operation of the proposed district is administratively 
feasible.  
    (b) The certified statement shall prescribe the boundaries 
of the district as defined by the state board.  [40.04 s. 6] 
    Subd. 10.  [SECRETARY OF STATE'S CERTIFICATE.] (a) The 
secretary of state shall examine the application of the 
supervisors and certified statement of the state board and, on 
finding that the name proposed for the district is not identical 
to the name of another district in the state, and is not so 
similar as to lead to confusion or uncertainty, the secretary of 
state shall receive, file, and record the application and 
statement.  
    (b) If the secretary of state finds that the name proposed 
for the district is identical with the name of another district, 
or so similar as to lead to confusion and uncertainty, the 
secretary of state shall certify the fact to the state board.  
The state board shall submit to the secretary of state a new 
name for the district that does not have the defect.  Upon 
receipt of a new name, free of defect, the secretary of state 
shall record the application and statement, with the new name.  
    (c) After the application and statement have been made, 
filed, and recorded, the district is a governmental subdivision 
of the state.  
    (d) The secretary of state shall issue to the supervisors a 
certificate, under the seal of the state, of the organization of 
the district and record the certificate with the application and 
statement.  
    (e) The boundaries of the district consist of the area 
determined by the state board, but may not include area in 
another district.  The area of a home rule charter or statutory 
city within the boundaries of a district is included in the 
district.  If there is a question of whether an area is within 
or outside of a district, the state board shall determine 
whether the area of a city is included.  [40.04 s. 6] 
    Subd. 11.  [CERTIFICATE OF ORGANIZATION AS EVIDENCE.] In a 
suit, action, or proceeding involving the validity of, 
enforcement of, or relating to, a contract, proceeding, or 
action of a district, the district is considered to have been 
established in accordance with this section upon proof of the 
issuance of the certificate by the secretary of state.  A copy 
of the certificate, certified by the secretary of state, is 
admissible in evidence in the suit, action, or proceeding and is 
proof of its filing and contents.  [40.04 s. 9] 
    Sec. 6.  [103C.205] [ANNEXING ADDITIONAL AREA.] 
    (a) Land occupiers may file a petition to include 
additional area within an existing district with the state 
board.  The procedure for a petition to establish a district 
shall be followed on a petition to include additional area.  The 
state board shall prescribe the form for the petition, which 
shall be as nearly as possible in the form for a petition to 
organize a district.  
    (b) If the number of land occupiers in the area proposed 
for inclusion is less than 25, the petition may be filed when 
signed by a majority of the land occupiers in the area and a 
referendum need not be held.  
    (c) In a referendum to include additional area, all land 
occupiers within the proposed additional area may vote.  
    (d) It is not necessary to obtain the consent of the owners 
within the district before the additional area is annexed to a 
district.  [40.04 s. 8] 
    Sec. 7.  [103C.211] [CONSOLIDATION AND DIVISION OF 
DISTRICTS.] 
     (a) A petition to consolidate two or more districts or to 
separate a district into two or more districts may be filed with 
the state board by 25 or more land occupiers within the affected 
districts.  It is not necessary to obtain the consent of fee 
owners in an established district before districts are 
consolidated or an existing district is divided.  Proceedings 
provided for petitions to organize a district shall be followed 
as far as they are applicable.  The state board shall prescribe 
the form for a petition, which shall be as nearly as possible in 
the form for petitions to organize a district.  
    (b) The land occupiers within the affected districts may 
vote in the referendum.  The state board may not determine the 
administrative feasibility of consolidating or separating 
districts unless a majority of the votes cast in the referendum 
within each separate district affected, or within each separate 
area sought to be made a separate district, is in favor of the 
consolidation or separation.  
    (c) When districts are consolidated or separated, the 
corporate existence and terms of office of the officers of the 
old districts expire upon the issuance and recording by the 
secretary of state of a certificate of organization of the new 
districts.  Upon consolidation, the rights and liabilities of 
the consolidating districts shall be assumed by the consolidated 
district.  Upon separation, the rights and liabilities of the 
original district shall be vested in and assumed by the new 
districts in an equitable proportion determined by the state 
board.  A separation does not affect the term of office for 
which a supervisor was elected or appointed.  The supervisor 
shall continue to represent the district where the supervisor 
resides for that full term.  [40.04 s. 8] 
    Sec. 8.  [103C.215] [CHANGE OF NAME.] 
     The name of a district may be changed with the approval of 
the state board, after the adoption of a resolution by a 
majority of the supervisors stating the new name, by filing a 
certified copy of the resolution with the secretary of state.  
[40.04 s. 10] 
    Sec. 9.  [103C.221] [CHANGE OF LOCATION OF PRINCIPAL 
OFFICE.] 
    The location of the principal office of the district board 
may be changed with the approval of the state board after the 
adoption of a resolution by a majority of the district board 
stating the new location, and by filing a certified copy of the 
resolution with the secretary of state.  [40.04 s. 11] 
    Sec. 10.  [103C.225] [DISCONTINUANCE OF DISTRICTS.] 
    Subdivision 1.  [PETITION FOR TERMINATION.] (a) After five 
years after the organization of a district, 25 occupiers of land 
in the district may file a petition with the state board asking 
that the operations and existence of the district be terminated. 
    (b) The state board may not receive a petition, conduct a 
referendum, or make a determination on a petition to discontinue 
a district more often than once in two years.  [40.14] 
    Subd. 2.  [HEARINGS.] The state board may conduct public 
meetings and public hearings upon the petition as necessary to 
assist in consideration of the petition.  [40.14] 
    Subd. 3.  [REFERENDUM.] (a) Within 60 days after the 
petition is received by the state board, it shall give due 
notice of the holding of a referendum, supervise the referendum, 
and issue appropriate regulations governing the conduct of the 
referendum. 
    (b) The question shall be submitted by ballots, upon which 
the words "For terminating the existence of the 
.................. (name of the soil and water conservation 
district to be here inserted)" and "Against terminating the 
existence of the .................. (name of the soil and water 
conservation district to be here inserted)" shall be printed, 
with a square before each proposition and a direction to insert 
an X mark in the square before one or the other.  
    (c) Only land occupiers in the district may vote in the 
referendum.  
    (d) Informalities in the conduct of the referendum or 
matters relating to the referendum do not invalidate the 
referendum, or result of the referendum, if due notice has been 
given and the referendum has been fairly conducted.  
    (e) The state board shall publish the result of the 
referendum.  [40.14] 
    Subd. 4.  [DETERMINATION BY STATE BOARD.] (a) The state 
board shall determine whether the continued operation of the 
district board is administratively feasible and give 
consideration to the public policy under article 1, section 6, 
and:  
    (1) the attitudes of the occupiers of lands lying within 
the district; 
    (2) the number of land occupiers eligible to vote in the 
referendum who have voted; 
    (3) the proportion of the votes cast in the referendum in 
favor of the discontinuance of the district to the total number 
of votes cast; 
    (4) the approximate wealth and income of the land occupiers 
of the district; 
    (5) the probable expense of carrying on erosion-control 
operations within the district; and 
    (6) other economic and social factors relevant to the 
determination.  
    (b) If the state board determines that the continued 
operation of the district is administratively feasible, the 
state shall record the determination and deny the petition.  
    (c) If the state board determines that the continued 
operation of the district is not administratively feasible, the 
state board shall record the determination and certify the 
determination to the district board.  The state board may not 
determine that the continued operation of the district is 
administratively feasible unless at least a majority of the 
votes cast in the referendum have been cast in favor of 
continuance.  [40.14] 
    Subd. 5.  [TERMINATION OF DISTRICT AFFAIRS.] Upon receipt 
from the state board of a certification that the state board has 
determined that the continued operation of the district is not 
administratively feasible, the district board shall promptly 
terminate the affairs of the district.  The district board shall 
dispose of all property belonging to the district at public 
auction and pay the proceeds into the state treasury.  [40.14] 
    Subd. 6.  [APPLICATION TO SECRETARY OF STATE.] The district 
board shall then file a verified application with the secretary 
of state to discontinue the district with the certificate of the 
state board setting forth its determination that the continued 
operation of the district is not administratively feasible.  The 
application shall recite that the property of the district has 
been disposed of and the proceeds paid as provided in this 
section, and set forth a full accounting of the property and 
proceeds.  [40.14] 
    Subd. 7.  [CERTIFICATE OF DISSOLUTION.] The secretary of 
state shall issue to the district board a certificate of 
dissolution and record the certificate in the secretary of 
state's office.  [40.14] 
    Subd. 8.  [EFFECT OF DISSOLUTION.] Upon issuance of the 
certificate of dissolution, the ordinances and regulations in 
force in the district are of no further force.  All contracts 
entered into, to which the district or district board were 
parties, shall remain in force and effect for the period 
provided in the contracts.  The state board shall be substituted 
for the district or district board as party to the contracts and 
succeed to the district's rights and duties.  [40.14] 
    Sec. 11.  [103C.231] [COOPERATION BETWEEN DISTRICTS AND 
OTHER PUBLIC AGENCIES.] 
    Subdivision 1.  [COOPERATION WITH OTHER AGENCIES.] (a) The 
district boards of two or more districts may cooperate with one 
another or with appropriate agencies to exercise powers 
conferred in this chapter or article 6, sections 57 to 68.  
[40.12] 
    (b) The district board may make contracts or other 
arrangements with: 
    (1) the federal government; 
    (2) persons or public or private corporations; and 
    (3) the government of this state or other states.  
    (c) A soil and water conservation district may join or 
cooperate by agreement as provided in section 471.59 with 
another soil and water conservation district or a watershed 
district, or a governmental unit defined in section 471.59, or 
with a combination of them in an operation or project in which 
the soil and water conservation district and the other party 
have a common interest.  For the purposes of this section, soil 
and water conservation districts and watershed districts are 
governmental units under section 471.59.  [40.12] 
    Subd. 2.  [COOPERATION AMONG DISTRICTS.] (a) If the 
improvement work unit covers two districts, a joint board made 
up of three supervisors from each of the district boards shall 
preside.  If the improvement work unit covers three or more 
districts, a joint board made up of two supervisors from each 
district board shall preside.  The individual boards shall 
appoint the supervisors to represent them on the joint board.  
    (b) The joint board shall accept and approve initial 
requests for improvement work units, direct the preparation of 
preliminary surveys and studies, establish improvement work 
units, and, at the direction of the county boards, adopt 
programs and reports, award contracts, supervise construction, 
and accept completed construction work.  [40.12] 
    Sec. 12.  [103C.235] [STATE AGENCIES TO COOPERATE.] 
    State agencies which have jurisdiction over or administer 
state-owned lands, and agencies of a county, or other 
governmental subdivision, that have jurisdiction over or 
administer county-owned or other publicly owned lands that are 
in a district, shall cooperate with the district boards to 
implement programs and operations undertaken by the district 
board under this chapter and article 6, sections 57 to 68.  The 
district board shall have free access to enter and perform work 
on the affected lands.  [40.13] 

                            DISTRICT BOARDS 
    Sec. 13.  [103C.301] [INITIAL ELECTION OF SUPERVISORS.] 
    Subdivision 1.  [NOMINATING PETITIONS.] Within 30 days 
after the date that the secretary of state issues a certificate 
of organization of a district, or during additional time as the 
state board may allow, nominating petitions may be filed with 
the state board nominating legal voters as candidates for 
election as supervisors.  Two supervisors shall be elected for 
terms to expire on December 31 following the second general 
election after their initial election, and one for a term to 
expire on December 31 following the third general election after 
their initial election.  Each petition must be signed by one or 
more legal voters of the district.  If a person signs petitions 
nominating more than three candidates, the signature may not be 
counted on any petition.  [40.05 s. 1] 
    Subd. 2.  [NOTICE OF ELECTION.] The state board shall give 
due notice of the time and place where the election will be held 
in the district, and specify in the notice the names of all 
candidates and the terms for which they are nominated.  [40.05 
s. 1] 
    Subd. 3.  [BALLOTS.] The state board shall prepare ballots 
for the election with the surnames of the candidates printed in 
alphabetical order for each term, a square before each name, and 
a direction to insert an X mark in the square before three names 
with different terms to indicate the voter's choice.  [40.05 s. 
1] 
    Subd. 4.  [VOTING.] All legal voters shall be eligible to 
vote at the election.  [40.05 s. 1] 
    Subd. 5.  [ELECTION.] The three candidates who receive the 
highest numbers respectively of the votes cast for each of three 
positions at the election shall be the elected supervisors.  In 
case of a tie, the election shall be determined by lot, under 
the direction of the state board.  The state board shall 
supervise the election, pay expenses of the election, prescribe 
rules for the election, determine the eligibility of voters, and 
publish the results.  [40.05 s. 1] 
    Subd. 6.  [ELECTED SUPERVISOR TERM.] Except to fill a 
vacancy, supervisors shall be elected for six-year terms.  
[40.05 s. 2] 
    Sec. 14.  [103C.305] [GENERAL ELECTION OF SUPERVISORS.] 
    Subdivision 1.  [TIME FOR ELECTION.] Except for elections 
under section 13 held after the organization of the district, 
elections must be held at the state general election specified 
in section 204D.03, subdivision 2.  A primary may not be held.  
[40.05 s. 3] 
    Subd. 2.  [NOMINATING PETITION.] (a) The district secretary 
shall immediately submit the names of the candidates and the 
terms for which each candidate is nominated to the county 
auditor.  
    (b) Nominating petitions conforming to section 13, 
subdivision 1, shall be filed with the secretary of the district 
at least 60 days before the general election.  [40.05 s. 3] 
    Subd. 3.  [BALLOTS.] Ballots shall be prepared by the 
county auditor.  The names of candidates shall be placed on the 
"canary ballot" described in section 204D.11, subdivision 3.  
[40.05 s. 3] 
    Subd. 4.  [ELECTION.] Laws relating to elections for county 
office shall govern to the extent that they are consistent with 
this section and section 15.  The county auditor shall certify 
the result to the state board.  If the district includes land in 
more than one county, the county auditor shall immediately 
certify to the state board the vote, as shown by the report of 
the county canvassing board, for candidates voted for in more 
than one county.  In the latter case, the state board shall 
certify and publish the result.  [40.05 s. 3] 
    Subd. 5.  [ELECTION WITHIN AREAS GOVERNED BY INDIAN 
TRIBES.] In a district where a supervisor nomination district is 
entirely within lands of an American Indian tribe or band to 
which county election laws do not apply, a supervisor to 
represent the district shall be elected or appointed as provided 
by the governing body of the tribe or band.  [40.05 s. 3a] 
    Subd. 6.  [VACANCY.] (a) If a vacancy occurs in the office 
of an elected supervisor, more than 60 days before the next 
general election, the district board shall fill the vacancy by 
appointment.  The supervisor appointed shall hold office until 
December 31 following the next general election.  A successor 
shall be elected at the general election following the 
appointment and hold office for the remainder of the term or for 
the next regular term, whichever is appropriate.  
     (b) If a vacancy occurs less than 60 days before the next 
general election, the district board shall fill the vacancy by 
appointment.  The appointed supervisor shall hold office until 
the expiration of the term or until December 31 following the 
second succeeding general election, whichever is shorter.  A 
successor shall be elected at the general election preceding 
expiration of the appointed term and hold office for the 
remainder of the term or for the next regular term, whichever is 
appropriate.  [40.05 s. 4] 
    Sec. 15.  [103C.311] [FORMATION OF SUPERVISOR DISTRICTS.] 
     (a) The district board, after two successive annual 
elections have been held, shall, with the approval of the state 
board, divide a district into five supervisor districts for 
purposes of nomination for election.  At each election after the 
division, one or more supervisors shall be nominated from each 
supervisor district.  
    (b) If the boundary of a soil and water conservation 
district has been substantially changed by a division of the 
district, the district shall be divided into five supervisor 
districts for nomination purposes.  
    (c) This subdivision does not disqualify a supervisor 
during the term for which the supervisor was elected or 
nominated for election.  Supervisors nominated from the 
supervisor districts shall be included on the ballot for 
election from the entire area included in the soil and water 
conservation district.  
    (d) A certified copy of the minutes or the resolution of 
the supervisors establishing supervisor districts must be 
promptly filed by the chair of the district board with the 
county auditor of the counties where the district is located and 
with the state board.  [40.04 s. 12] 
    Sec. 16.  [103C.315] [SUPERVISORS.] 
    Subdivision 1.  [MEMBERS.] (a) The district board shall 
consist of five supervisors, elected or appointed as provided in 
section 5, subdivision 8, and sections 13 and 14. 
    (b) Supervisors must be legal voters residing in the 
district.  [40.06 s. 1] 
    Subd. 2.  [TERMS.] The two supervisors appointed by the 
state board upon the establishment of a district shall serve 
terms ending on December 31 following the next general election 
after their appointment.  Their successors shall be elected for 
terms of six years.  [40.06 s. 1] 
    A supervisor shall hold office until a successor is elected 
or appointed and has qualified.  Vacancies in the office of 
supervisor appointed by the state board shall be filled by the 
state board.  [40.06 s. 2] 
    Subd. 3.  [QUORUM.] A majority of the supervisors is a 
quorum and the concurrence of a majority in any matter is 
required for its determination except as otherwise expressly 
provided.  [40.06 s. 2] 
    Subd. 4.  [COMPENSATION.] A supervisor shall receive 
compensation for services as the state board may determine, and 
may be reimbursed for expenses, including traveling expenses, 
necessarily incurred in the discharge of duties.  A supervisor 
shall be reimbursed for the use of the supervisor's own 
automobile in the performance of duties at the rate per mile 
prescribed for state officers and employees.  [40.06 s. 2] 
    Subd. 5.  [REMOVAL OF SUPERVISOR.] A supervisor may be 
removed by the state board upon notice and hearing, for neglect 
of duty or malfeasance in office, but for no other reason.  
[40.06 s. 4] 
    Sec. 17.  [103C.321] [OFFICERS AND EMPLOYEES.] 
    Subdivision 1.  [OFFICERS.] (a) The supervisors shall elect 
or appoint officers for the district and the district board.  
    (b) A chair of the district board shall be elected from its 
own members.  
    (c) A secretary and a treasurer shall be appointed who need 
not be members of the board.  
    (d) Officers serve at the pleasure of the supervisors.  
Officers shall have the powers and duties incident to their 
respective offices, and other powers and duties expressly 
prescribed by law or directed by the district board.  [40.06 s. 
3] 
    Subd. 2.  [EMPLOYEES.] The district board may employ 
technical experts and other officers, agents, and employees, 
permanent and temporary, as they may require.  The supervisors 
shall determine their qualifications, duties, and compensation.  
[40.06 s. 3] 
    Subd. 3.  [EMPLOYEE AND OFFICER BONDS.] The district board 
shall provide for the execution of surety bonds for all 
employees and officers who are entrusted with funds or 
property.  [40.06 s. 4] 
    Subd. 4.  [ATTORNEY.] The county attorney of the county 
where the major portion of the district is located or one 
otherwise employed by the board shall be the attorney for the 
district and its supervisors.  The district board may call upon 
the county attorney for necessary legal counsel and advice and 
service.  [40.06 s. 3] 
    Subd. 5.  [DELEGATION OF DUTIES.] The district board may 
delegate to its chair or other officer, to one or more 
supervisors, or to one or more agents or employees the powers 
and duties they deem proper.  [40.06 s. 3] 
    Sec. 18.  [103C.325] [RECORDS, AUDIT, INFORMATION TO STATE 
BOARD.] 
     Subdivision 1.  [RECORDS.] The district board shall keep a 
full and accurate record of all proceedings and resolutions, 
regulations, and orders issued or adopted.  [40.06 s. 4] 
    Subd. 2.  [AUDIT.] The state auditor shall annually audit 
the books of the district and its supervisors, or, at the 
request of the district board, the state auditor may contract 
for an annual audit by a certified public accountant.  The state 
auditor may determine that an annual audit of a district is not 
necessary, in which case an audit shall be made at least every 
four years.  [40.06 s. 4] 
    Subd. 3.  [INFORMATION TO STATE BOARD.] The supervisors 
shall furnish to the state board, upon request, copies of the 
ordinances, rules, regulations, orders, contracts, forms, and 
other documents that they adopt or use, and other information 
concerning their activities as the state board requires in the 
performance of its duties under this chapter.  [40.06 s. 3] 
    Sec. 19.  [103C.331] [POWERS OF DISTRICT BOARDS.] 
    Subdivision 1.  [GENERAL AUTHORITY.] A soil and water 
conservation district is a governmental and political 
subdivision of this state, and a public body, corporate and 
politic, and has the following powers in addition to any others 
prescribed by law.  [40.07 s. 1] 
    Subd. 2.  [ADVISORY ASSISTANCE.] The supervisors may invite 
the legislative body of a municipality or county in the district 
to designate a representative to advise and consult with the 
supervisors of the district on questions of program and policy 
that may affect the property, water supply, or other interests 
of the municipality or county.  [40.06 s. 5] 
    Subd. 3.  [SURVEYS, INVESTIGATIONS, AND RESEARCH.] A 
district may conduct surveys, investigations, and research to 
identify the problems and preventive practices specified in 
article 1, section 6.  To avoid duplication of research 
activities, no district shall initiate any research program 
except in cooperation with a state agency or an agency of the 
United States.  [40.07 s. 2] 
    Subd. 4.  [PUBLICATION OF INFORMATION.] A district may 
publish its comprehensive plan and the results of its surveys, 
investigations, and research and may disseminate information to 
the public concerning any of its activities.  [40.07 s. 2] 
    Subd. 5.  [DEMONSTRATION PROJECTS.] A district may conduct 
demonstration projects within the district on lands owned or 
administered by a state agency, with the cooperation of the 
administering agency, and on other lands with the consent of the 
land occupier, to demonstrate practices which implement the 
state policy specified in article 1, section 6.  [40.07 s. 3] 
    Subd. 6.  [IMPLEMENTATION OF PRACTICES.] A district may 
implement any necessary practices within the district, including 
structural measures and works of improvement for any purpose 
specified in article 1, section 6, methods of cultivation, the 
use of vegetation, and changes in use of land, on:  
    (1) lands acquired by the district; 
    (2) lands owned or administered by a state agency, with the 
cooperation of the administering agency; and 
    (3) other lands, with the consent of the land occupier.  
[40.07 s. 4] 
    Subd. 7.  [IMPLEMENTATION OF SOIL AND WATER CONSERVATION 
POLICY.] A district may cooperate or enter into agreements with 
and furnish financial or other aid to a land occupier or 
appropriate agency, to implement the policy specified in article 
1, section 6, within the district, subject to conditions the 
district board determines is necessary.  [40.07 s. 5] 
    Subd. 8.  [ACQUISITION AND MAINTENANCE OF PROPERTY.] A 
district may acquire any rights or interests in real or personal 
property by option, purchase, exchange, lease, gift, grant, 
bequest, devise, or otherwise.  It may maintain, operate, 
administer, and improve any properties acquired.  It may receive 
income from the properties and expend the income to implement 
this chapter and article 6, sections 57 to 68.  It may sell, 
lease, or otherwise dispose of any of its property or 
interests.  [40.07 s. 6] 
    Subd. 9.  [USE OF MACHINERY AND SUPPLIES.] A district may 
make available, on terms it shall prescribe, to land occupiers 
within the district, agricultural and engineering machinery and 
equipment, fertilizer, seeds, and seedlings, and other material 
or equipment which will assist land occupiers to implement 
practices on their land specified in section 2.  [40.07 s. 7] 
    Subd. 10.  [CONSTRUCTION OF IMPROVEMENTS.] A district may 
construct, install, improve, maintain, and operate structures 
and works necessary or convenient to perform an operation 
authorized under this chapter and article 6, sections 57 to 68.  
[40.07 s. 8] 
    Subd. 11.  [COMPREHENSIVE PLAN.] (a) A district may develop 
and revise a comprehensive plan, specifying practices to 
implement the state policy specified in article 1, section 6, 
including: 
    (1) the construction, maintenance, and operation of 
structural measures; 
    (2) methods of cultivation; 
    (3) the use of vegetation; 
    (4) cropping programs; 
    (5) mechanical practices; 
    (6) changes in use of land; 
    (7) other land use, soil erosion reduction, and 
agricultural practices; and 
    (8) related technical standards and specifications.  
    (b) The plan shall include a classification of the soil 
types within the district as determined by the Minnesota 
cooperative soil survey.  
    (c) The plan must identify the areas within the district 
where erosion, sedimentation and related water quality problems 
appear most in need of control methods.  
    (d) The plan shall be consistent with the statewide 
framework water resources plan, the statewide water quality 
management plan, and the state board's soil and water program 
plan.  The plan shall be prepared as required by the rules of 
the state board. 
    (e) By August 1 of each even-numbered year, each district 
which applies for cost-sharing funds under section 23 shall 
submit to the state board an amendment of its comprehensive plan 
that identifies high priority erosion, sedimentation and water 
quality problems within the district as required by the rules of 
the state board.  
    (f) By August 1 of each year, each district that applies 
for cost-sharing funds under section 23 shall submit to the 
state board an annual work plan for the high priority erosion, 
sedimentation and water quality problems in the district.  The 
work plan shall be prepared as required by the rules of the 
state board.  In preparing the annual work plan, the district 
shall actively identify and seek out land occupiers with high 
priority erosion problems who have not participated in 
cost-sharing contracts and encourage their participation in 
programs to control their erosion problems.  [40.07 s. 9] 
    Subd. 12.  [ASSUMPTION OF CONSERVATION PROJECTS.] (a) A 
district may take over by purchase, lease, or otherwise, and may 
improve, maintain, operate, and administer a soil or water 
conservation, erosion-control, erosion-prevention, watershed 
protection, flood prevention or flood control project in its 
boundaries undertaken by the United States or by a state agency. 
    (b) A district may accept donations, gifts, grants, or 
contributions in money, services, materials, or otherwise from 
the United States, a state agency or other source to accomplish 
the authorization in this section.  A board may enter into a 
contract or agreement necessary or appropriate to accomplish the 
transfer.  A board may use or expend money, services, materials, 
or other things to accomplish an authorized purpose.  [40.07 s. 
10] 
    Subd. 13.  [AUTHORITY FOR SUIT AND CONTRACTS.] A district 
may sue and be sued in its name, have perpetual succession 
unless terminated as provided in section 10, make and execute 
contracts and other instruments necessary or convenient to the 
exercise of its powers, and make, amend, or repeal rules and 
regulations consistent with this chapter and article 6, sections 
57 to 68.  [40.07 s. 11] 
    Subd. 14.  [COMPENSATION FOR WORK OR PROJECTS.] As a 
condition for extending benefits for the performance of work 
upon lands not owned or administered by a state agency or the 
district, the supervisors may require compensation or 
contributions in money, services, materials, or otherwise, 
commensurate with the cost or reasonable value of the operations 
or work conferring the benefits.  [40.07 s. 12] 
    Subd. 15.  [AGREEMENTS FOR FEDERAL ASSISTANCE.] (a) A 
district may submit an application and enter into an agreement 
or contract with the secretary of agriculture or other 
designated authority to obtain or use federal assistance under 
any law providing for federal assistance for an authorized 
purpose of the district.  
    (b) A district may: 
    (1) acquire without cost to the federal government any 
land, easements, or rights-of-way needed in connection with 
works of improvement installed with federal assistance; 
    (2) assume the proportionate share of the cost of 
installing works of improvement involving federal assistance 
determined by the secretary or other designated authority to be 
equitable in consideration of anticipated benefits from the 
improvements; 
    (3) make arrangements satisfactory to the secretary or 
other authority to defray costs of operating and maintaining 
works of improvement in accordance with prescribed regulations; 
    (4) acquire or provide assurance that land occupiers have 
acquired the water rights and other rights, pursuant to state 
law, needed to install, maintain, and operate the works of 
improvement; and 
    (5) obtain agreements to carry out recommended soil and 
water conservation measures and prepare farm plans for owners of 
not less than 50 percent or other required percentage of the 
lands situated in a drainage area above a retention reservoir 
installed with federal assistance, as prescribed by applicable 
federal law, and may do any other acts necessary to secure and 
use federal aid.  [40.07 s. 14] 
    Subd. 16.  [BUDGET.] The district board shall annually 
present a budget consisting of an itemized statement of district 
expenses for the ensuing calendar year to the boards of county 
commissioners of the counties in which the district is located.  
The county boards may levy an annual tax on all taxable real 
property in the district for the amount that the boards 
determine is necessary to meet the requirements of the 
district.  The amount levied shall be collected and distributed 
to the district as prescribed by chapter 276.  The amount may be 
spent by the district board for a district purpose authorized by 
law.  [40.07 s. 15] 
    Subd. 17.  [FUNDS FOR STATE AND NATIONAL ASSOCIATIONS.] A 
district may appropriate funds to provide membership in state 
and national associations that have as their purpose the 
betterment and improvement of soil and water conservation 
district operations.  A district may participate through 
designated representatives in the meetings and activities of the 
associations.  A district may appropriate funds to defray the 
actual and necessary expenses of its representatives in 
connection with the associations' membership.  The expenses may 
be paid only upon the presentation of a verified itemized 
claim.  [40.07 s. 16] 
    Subd. 18.  [LIABILITY INSURANCE.] A district may procure 
liability insurance as provided in section 466.06, automobile 
insurance on personal cars while used on official business, 
insurance on the contents of district offices, and workers' 
compensation insurance, or may require the counties in which the 
district is located to include the district in the counties' 
insurance coverage for these purposes.  [40.071] 
    Sec. 20.  [103C.335] [TECHNICAL AND ADMINISTRATIVE 
ASSISTANCE TO DISTRICTS.] 
    At the request of local districts, the agricultural 
extension service of the University of Minnesota, county 
extension committees, and county extension agents shall:  
    (1) advise the districts in developing their comprehensive 
plan amendments and annual work plans; 
    (2) in cooperation with the districts and the soil 
conservation service of the United States Department of 
Agriculture, provide technical assistance and education to land 
occupiers about conservation tillage practices and other soil 
conservation practices; and 
    (3) participate in training district officials and 
employees in cooperation with the state board.  [40.038] 

                       DUTIES OF THE STATE BOARD 
    Sec. 21.  [103C.401] [BOARD OF WATER AND SOIL RESOURCES.] 
    Subdivision 1.  [POWERS AND DUTIES.] In addition to the 
powers and duties of the state board provided by other law, the 
state board shall:  
    (1) receive and disburse any grants made available to the 
state by the United States Department of Agriculture under the 
preferred program developed under United States Code, title 16, 
sections 2001 to 2009; 
    (2) offer to assist the district boards to implement their 
programs; 
    (3) keep the district boards of the state informed of the 
activities and experience of other districts and facilitate 
cooperation and an interchange of advice and experience among 
the districts; 
    (4) coordinate the programs and activities of the districts 
with appropriate agencies by advice and consultation; 
    (5) approve or disapprove the plans or programs of 
districts relating to the use of state funds administered by the 
state board; 
    (6) secure the cooperation and assistance of agencies in 
the work of the districts and develop a program to advise and 
assist appropriate agencies in obtaining state and federal funds 
for erosion, sedimentation, flooding, and agriculturally related 
pollution control programs; 
    (7) develop and implement a public information program 
concerning the districts' activities and programs, the problems 
and preventive practices relating to erosion control, 
sedimentation, agriculturally related pollution, flood 
prevention, and the advantages of formation of districts in 
areas where their organization is desirable; 
    (8) divide and consolidate districts without a hearing or a 
referendum to confine districts within county limits, without 
allowing a district, if feasible and practicable, to contain 
less than four full or fractional congressional townships; 
    (9) assist the statewide program to inventory and classify 
the types of soils in the state as determined by the Minnesota 
cooperative soil survey; 
    (10) identify research needs and cooperate with other 
public agencies in research concerning the nature and extent of 
erosion, sedimentation, flooding and agriculturally related 
pollution, the amounts and sources of sediment and pollutants 
delivered to the waters of the state, and long-term soil 
productivity; 
    (11) develop structural, land use management practice, and 
other programs to reduce or prevent soil erosion, sedimentation, 
flooding, and agriculturally related pollution; 
    (12) develop a system of priorities to identify the 
erosion, flooding, sediment, and agriculturally related 
pollution problem areas that most need control systems; and 
    (13) ensure compliance with statewide programs and policies 
established by the state board by advice, consultation, and 
approval of grant agreements with the districts.  [40.03 s. 4] 
    Subd. 2.  [USE OF FUNDS.] (a) Funds made available to a 
district from the state for expenditures necessary for its 
operations may be used only for purposes authorized by the state 
board.  
    (b) A district may designate the board of county 
commissioners to act as the agent of the district to receive and 
expend the funds at the direction and with the approval of the 
district board. 
    (c) At least annually the state board shall audit, in a 
manner it prescribes, the expenditure of the funds.  [40.03 s. 
4] 
    Sec. 22.  [103C.405] [PROGRAM PLAN.] 
    Subdivision 1.  [CONTENTS.] The state board shall prepare, 
in consultation with the districts and appropriate agencies, a 
program plan to accomplish its duties.  The state board shall 
use the program plan in decisions to allocate funds to 
districts.  The state board shall emphasize the determination of 
priority areas where erosion, sedimentation, and related water 
quality problems appear most in need of control and the 
development of the comprehensive public information program.  
[40.035 s. 1] 
    Subd. 2.  [INFORMATIONAL HEARING ON PLAN.] To develop the 
program plan, the state board may request existing pertinent 
information from state agencies and may conduct hearings.  
[40.035 s. 2] 
    Subd. 3.  [COORDINATION WITH STATE RESOURCE PLANS.] The 
program plan shall be coordinated as closely as possible with 
the statewide framework water resources plan, the statewide 
water quality management plan, and other statewide resource 
plans.  [40.035 s. 3] 
    Subd. 4.  [REVIEW AND REVISION.] The state board shall 
review and revise the program plan at intervals it deems 
appropriate.  [40.035 s. 4] 

                         COST-SHARING CONTRACTS 
    Sec. 23.  [103C.501] [COST-SHARING CONTRACTS FOR EROSION 
CONTROL AND WATER MANAGEMENT.] 
    Subdivision 1.  [COST SHARE AUTHORIZATION.] The state board 
may allocate available funds to districts to share the cost of 
systems or practices for erosion or sedimentation control or 
water quality improvement that are designed to protect and 
improve soil and water resources.  [40.036 s. 1] 
    Subd. 2.  [REQUEST BY DISTRICT BOARD.] (a) A district board 
requesting funds of the state board must submit an application 
in a form prescribed by the board containing:  
    (1) a comprehensive plan; 
    (2) an annual work plan; and 
    (3) an application for cost-sharing funds.  
    (b) The comprehensive and annual work plans must be 
completed as provided in section 19, subdivision 11.  After 
review of the district's comprehensive plan, the state board 
must approve the comprehensive plan with necessary amendments or 
reject the plan.  [40.036 s. 1] 
    Subd. 3.  [APPROVAL OF APPLICATION.] If the state board 
approves the comprehensive plan, including the plan's most 
recent amendment, the annual work plan, and the application of 
the district, the state board shall determine the specific 
amount of funds to allocate to the district for cost-sharing 
contracts.  [40.036 s. 1] 
    Subd. 4.  [COST-SHARING FUNDS.] (a) The state board shall 
allocate at least 70 percent of cost-sharing funds to areas with 
high priority erosion, sedimentation, or water quality 
problems.  The areas must be selected based on the statewide 
priorities established by the state board.  The allocated funds 
must be used for conservation practices for high priority 
problems identified in the comprehensive and annual work plans 
of the districts.  
    (b) The remaining cost-sharing funds may be allocated to 
districts as follows:  
    (1) for technical and administrative assistance, not more 
than 20 percent of the funds; and 
    (2) for conservation practices for lower priority erosion, 
sedimentation, or water quality problems.  [40.036 s. 1] 
    Subd. 5.  [CONTRACTS BY DISTRICTS.] (a) A district board 
may contract on a cost-share basis to furnish financial aid to a 
land occupier or to a state agency for permanent systems for 
erosion or sedimentation control or water quality improvement 
that are consistent with the district's comprehensive and annual 
work plans.  [40.036 s. 2] 
    (b) The duration of the contract may be the time required 
to complete the planned systems.  A contract must specify that 
the land occupier is liable for monetary damages, not to exceed 
the amount of financial assistance received from the district, 
for failure to complete the systems or practices in a timely 
manner or maintain the systems or practices as specified in the 
contract.  [40.036 s. 2] 
    (c) A contract may provide for cooperation or funding with 
federal agencies.  A land occupier or state agency may provide 
the cost-sharing portion of the contract through services in 
kind.  [40.036 s. 2] 
    (d) The state board or the district board may not furnish 
any financial aid for practices designed only to increase land 
productivity.  [40.036 s. 1] 
     Subd. 6.  [RULES.] The state board shall adopt rules 
prescribing:  
     (1) procedures and criteria for allocating funds for 
cost-sharing contracts; 
     (2) standards and guidelines for cost-sharing contracts; 
     (3) the scope and content of district comprehensive plans, 
plan amendments, and annual work plans; 
     (4) standards and methods necessary to plan and implement a 
priority cost-sharing program, including guidelines to identify 
high priority erosion, sedimentation, and water quality 
problems; 
    (5) the share of the cost of conservation practices to be 
paid from cost-sharing funds; and 
     (6) requirements for districts to document their efforts to 
identify and contact land occupiers with high priority erosion 
problems.  [40.036 s. 3] 

                          WORKS OF IMPROVEMENT 
    Sec. 24.  [103C.601] [WORKS OF IMPROVEMENT.] 
    Subdivision 1.  [AUTHORITY.] (a) The district board may, if 
directed by resolution of the boards of commissioners from the 
counties where the district is located undertake, construct, 
install, maintain, and operate works of improvement for a 
district purpose.  The district board may: 
    (1) use the proceeds of tax levies, assessments, and other 
available funds for the works of improvement; 
    (2) acquire necessary real or personal property by purchase 
or gift for the works of improvement; 
    (3) contract, survey, plan, construct, install, maintain, 
and operate the works of improvement; and 
    (4) exercise other authorized powers. 
    (b) Two or more district boards may jointly exercise the 
powers granted by this section.  [40.072 s. 1] 
    Subd. 2.  [REQUEST FOR PROJECT.] A program for works of 
improvement in any area within one or more districts may be 
initiated upon written request for a project submitted to the 
district board by one or more of the owners of land in the 
affected area.  The request must include: 
    (1) a general description of the area proposed for 
inclusion in an improvement work unit, with a proposed name or 
number for the project; 
    (2) a description of the affected land owned by the 
signers; and 
     (3) a statement of the objectives of the proposed works in 
furtherance of the authorized purposes, the grounds upon which 
the project will be of public benefit and utility and promote 
the public health, safety, and welfare, and special benefits to 
property that will result from the project.  [40.072 s. 2] 
    Subd. 3.  [DETERMINATION BY DISTRICT BOARD.] As soon as 
practicable after receipt of the request the district board 
shall have necessary preliminary surveys and studies conducted.  
[40.072 s. 2] 
     Subd. 4.  [RESOLUTION OF ESTABLISHMENT.] (a) The district 
board may, by resolution, recommend the establishment of an 
improvement work unit and a program for works of improvement in 
the work unit to the boards of county commissioners of the 
counties where the affected land is located if the district 
board determines the proposed works of improvement: 
     (1) are feasible; 
     (2) will be of public utility and benefit; 
     (3) will promote the public health, safety, and welfare; 
and 
     (4) will further the authorized purposes and best interests 
of the district. 
     (b) The district board shall by resolution give the 
improvement work unit an appropriate name or number, which may 
be different from the one proposed in the initial project 
request. 
     (c) The resolution shall recommend definite boundaries for 
the improvement work unit, which may be those proposed in the 
request or modified as the district board deems advisable. 
    (d) In the resolution the district board may also enlarge, 
reduce, or otherwise modify the proposed objectives of the 
program, but not make a substantial change in its main purposes 
as stated in the initial project request unless consented to in 
writing by the signers of the request. 
     (e) At any time before further action is taken on the 
project as provided in section 25 the district board may amend 
the resolution, subject to the foregoing limitations.  [40.072 
s. 2] 
    Subd. 5.  [PRELIMINARY GENERAL PLAN.] (a) After adoption of 
the resolution recommending the improvement work unit and 
program under subdivision 4, the district board after being 
directed by resolution of the affected boards of county 
commissioners may have further surveys and studies made as 
necessary.  
    (b) The district board may then have a preliminary general 
plan with cost estimates made to implement the program for the 
improvement work unit or part of the work unit.  [40.072 s. 3] 
    Subd. 6.  [FINANCIAL AID.] (a) The district board, at the 
direction of the affected county boards, may apply for federal 
aid, state aid, or aid available from other sources for the 
works of improvement in the program or part of the works of 
improvement under federal or state law. 
    (b) The district board may take the steps necessary to 
determine whether aid will be available and the amount of the 
aid.  The district board may consider how the cost of the works 
not expected to be paid by federal or other aid may be met from 
funds of the district or from the proceeds of assessments on 
benefited property or otherwise, and the district board may make 
estimates of the amounts and sources.  [40.072 s. 3] 
    Subd. 7.  [NECESSARY COOPERATION OR JOINT ACTION.] If the 
cooperation or joint action of an adjacent district or other 
public agency is desirable for the program, the district board, 
at the direction of the affected county boards, may negotiate 
with the authorities concerned for cooperation or joint action.  
[40.072 s. 3] 
    Subd. 8.  [RECOMMENDATION REPORT.] (a) After completion of 
the requirements in subdivisions 1 to 7, the district board may 
make and file a recommendation report, summarizing findings and 
recommendations for further action on all or part of the program 
and containing substantially the engineering information 
required by article 4, section 55, subdivisions 1 to 3. 
     (b) The district board shall make the recommendation report 
and the preliminary general plan for the improvement work unit 
available to the affected county boards and to all other public 
agencies and concerned persons, and may provide other publicity 
that it deems advisable.  The district board shall transmit a 
copy of the recommendation report and preliminary general plan 
to regional development agencies where the project is located.  
If the preliminary general plan involves a project for which a 
water use permit or public waters works permit is required from 
the commissioner of natural resources under chapter 103G, or for 
which proceedings will be instituted under chapter 103E, the 
district board shall transmit the recommendation report and plan 
to the commissioner of natural resources and to the state 
board.  [40.072 s. 3] 
     Subd. 9.  [STATE BOARD REVIEW.] (a) The state board shall 
review the recommendation report and preliminary general plan 
and, if the state board concludes that the plan is inconsistent 
with systematic administration of state water policy, the state 
board shall report the conclusion to the district board and the 
commissioner of natural resources within 60 days after receiving 
the recommendation report and preliminary general plan. 
    (b) The district board may modify and retransmit the 
recommendation report and preliminary general plan to the state 
board, or request a hearing on the recommendation report and 
preliminary general plan.  The state board shall hear the matter 
in the manner and following the procedures provided in article 
1, sections 15 to 19, for the hearing of cases when the state 
board consents to intervention proceedings. 
     (c) Unless the state board concludes that the report and 
plan are inconsistent with state water policy, the district 
board, with the approval of the county boards, may adopt and 
sponsor the improvement work unit and a program of work for the 
unit.  [40.072 s. 3] 
    Sec. 25.  [103C.605] [COUNTY DETERMINATION OF PROJECT.] 
     Subdivision 1.  [PETITION.] (a) The county board or joint 
county board, acting jointly under section 471.59, may take 
action on a project within the improvement work unit to 
construct or install works of improvement or part of the works 
of improvement pursuant to the recommendation report after 
receiving a petition. 
     (b) The petition must be for a project signed by: 
     (1) at least 25 percent of the owners of the land over 
which the proposed improvement work passes; 
    (2) at least 25 percent of the owners of land where the 
proposed improvement is located; 
     (3) the owners of at least 30 percent of the land area over 
which the proposed improvement work passes; or 
     (4) the owners of at least 30 percent of the land area 
where the proposed project is located. 
     (c) The petition must describe the land and request the 
county board or joint county board to hold a hearing on the 
practicability and desirability of implementing the project in 
accordance with the preliminary general plan and the 
recommendation report of the district board. 
    (d) If the recommendation report specifies that 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 filing the petition and before action is taken 
on the petition, must file a bond to the county or counties 
conditioned as provided by article 5, section 27, for a county 
drainage system, to be approved by the chair of the board.  
[40.072 s. 4] 
    Subd. 2.  [HEARING.] The county board or joint county board 
shall set a time and place for the hearing on the petition, and 
give notice of the hearing as provided in article 5, section 40, 
subdivision 1.  [40.072 s. 4] 
     Subd. 3.  [RESOLUTION FOR FURTHER ACTION.] (a) After the 
hearing the county board or joint county board may adopt a 
resolution directing further action on the project if it makes 
and states findings that implementation of the project as 
requested in the petition will be: 
     (1) feasible; 
     (2) in accordance with the recommendation report; 
    (3) in furtherance of the objectives and purposes of the 
recommendation report; and 
    (4) within the estimated cost for which funds may 
reasonably be expected to be available. 
     (b) By the resolution the county board or joint county 
board shall determine the amount to be paid from the various 
sources of available or potentially available funds, including 
federal aid, district funds, assessments on benefited property, 
and other funds.  The amount payable from district funds may not 
exceed the value of the general public benefit of the project to 
the district as determined by the district board.  [40.072 s. 4] 
    Sec. 26.  [103C.611] [PROJECT WITHOUT ASSESSMENTS.] 
    Subdivision 1.  [ORDER ESTABLISHING PROJECT.] (a) If a 
portion of the project cost is not 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 an order establishing the project.  The 
order shall contain findings substantially conforming to those 
required by article 5, section 57, subdivision 2. 
    (b) Notice summarizing the findings and order shall be 
served upon the persons entitled to notice of a county drainage 
project in article 5, section 54, unless the notice is waived in 
writing by each person entitled to the notice.  Waiver of notice 
must be filed with the county auditor.  [40.072 s. 5] 
    Subd. 2.  [ACQUISITION OF PROPERTY AND MATERIALS.] 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 other steps appropriate to complete the project.  
[40.072 s. 5] 
    Subd. 3.  [DELEGATION OF DUTIES TO DISTRICT.] The county 
board or joint county board may delegate its duties and powers 
under this section to the district board or joint district board 
but the district board or joint district board may not exercise 
the power of eminent domain.  [40.072 s. 5] 
    Sec. 27.  [103C.615] [ACTION ON PROJECT WITH ASSESSMENTS.] 
    Subdivision 1.  [VIEWERS.] If part of the cost of the 
project is to be paid from the proceeds of assessments on 
benefited property, viewers must be appointed as provided in 
article 5, section 49, and report as required by article 5, 
sections 50, 51, and 52.  [40.072 s. 6] 
    Subd. 2.  [ENGINEERING SERVICES.] The board or joint board 
of county commissioners shall direct the petitioners or, with 
its consent, the district board or joint district board, to 
provide engineering services as necessary to produce final plans 
adequate for construction of the proposed improvement.  [40.072 
s. 6] 
    Subd. 3.  [HEARING.] The county board or joint county board 
shall then give notice of and conduct a final hearing 
substantially in accordance with article 5, sections 54 to 57, 
as for a drainage proceeding, so far as the procedure is 
consistent with sections 24 to 31.  [40.072 s. 6] 
    Subd. 4.  [ASSESSMENTS GREATER THAN BENEFITS.] If the 
county board or joint county board determines that the total 
benefits to property are not as much as the amount payable from 
the proceeds of assessments as specified in the recommendation 
report of the district board, the petition shall be dismissed 
and further action on the project discontinued unless the county 
board or joint county board determines that the deficiency may 
be met by increasing the amount payable from other funds.  
[40.072 s. 6] 
    Subd. 5.  [ESTABLISHMENT OF PROJECT.] (a) If it determines 
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 requirements of law have been 
complied with, the county board or joint county board shall by 
an order containing the findings establish the project as 
reported or amended and adopt and confirm the viewers' report as 
made or amended.  
    (b) If the total amount of benefits to be assessed upon 
property pursuant to the viewers' report as confirmed is greater 
than the amount specified as payable from assessments in the 
report of the district board, the county board or joint county 
board may reduce the amounts payable from other sources in 
proportions it may determine.  
    (c) Further action shall be taken as provided in chapter 
103E, so far as is 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 confirmed, 
unless the total amount of benefits, less damages, exceeds the 
total actual cost of the project to be paid from the 
assessments, in which case the cost shall be prorated as 
provided in article 5, section 77.  [40.072 s. 6] 
    Subd. 6.  [COUNTY FUNDING SHARE OF PROJECT.] (a) 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.  The county may issue bonds for the purpose in the 
amount necessary in the manner provided in article 5, section 84.
    (b) The provision of article 5, section 84, requiring the 
county board to let a contract for construction before issuing 
bonds does not apply to bonds issued to provide funds required 
to be furnished by this section.  [40.072 s. 6] 
    Subd. 7.  [DELEGATION OF DUTIES TO DISTRICT.] (a) The 
county board or joint county board, pursuant to agreement with 
the district board, may by resolution direct the district to 
undertake, construct, install, maintain, and operate the 
improvement upon mutually agreed terms.  If it is necessary to 
acquire property by eminent domain, the county, or the counties 
acting jointly, shall do so and convey the property to the 
district pursuant to the agreement.  [40.072 s. 6] 
    (b) If, pursuant to an agreement, the responsibility for an 
improvement is vested in a district, the county treasurers shall 
transmit the proceeds of assessments or bond issues, when 
collected, to the treasurer of the district.  The district 
treasurer shall credit the proceeds to the proper funds under 
the direction of the district board.  [40.072 s. 6] 
    Sec. 28.  [103C.621] [PROJECT BONDS.] 
    The county board may pledge the proceeds of assessments on 
property made for the purposes of a project, any revenues 
derived from the project, and the proceeds of tax levies or 
funds from other sources to pay bonds issued for the project.  
[40.072 s. 7] 
    Sec. 29.  [103C.625] [STATUS OF DISCONTINUED PROJECT.] 
    If a project is discontinued after action on it has begun 
under section 25, the project shall have the same status as if 
the action had not begun.  The recommendation report of the 
district board on the project shall continue to be subject to 
amendment, a new petition for further action may be made at any 
time as provided in section 25, and further proceedings 
conducted.  [40.072 s. 8] 
    Sec. 30.  [103C.631] [REPAIR.] 
    Subdivision 1.  [DEFINITION OF REPAIR.] The term "repair" 
used in this section means to restore a work of improvement or 
part of it as nearly as practicable to the same condition as 
when originally constructed or subsequently improved.  [40.072 
s. 9] 
    Subd. 2.  [MAINTENANCE OF PROJECTS REQUIRED.] After the 
construction of a project is completed and accepted by the board 
of the county or district board having authority over the 
project, the county board or district board shall maintain the 
project or the part of the project that is in its jurisdiction 
and provide the repairs required to keep the project efficient.  
[40.072 s. 9] 
    Subd. 3.  [REPAIR AUTHORITY.] The county board or district 
board shall have the powers and duties of the drainage authority 
under article 5, sections 90 to 100, except as provided in 
subdivision 4.  [40.072 s. 9] 
    Subd. 4.  [FINANCING REPAIRS.] If the board is a district 
board, the financing of repairs which require assessments and 
bond issues shall be the responsibility of the county board or 
joint county board.  The county board or joint county board 
shall finance repairs in the same way as original construction 
of the project and as provided in article 5, sections 90 to 100, 
so far as appropriate.  [40.072 s. 9] 
    Sec. 31.  [103C.635] [APPEALS.] 
    (a) A person aggrieved by an order of a county board or 
joint county board in a proceeding under sections 24 to 30 may 
appeal to the district court upon the grounds and in the manner 
provided by article 5, sections 19 and 20, for a county drainage 
proceeding. 
    (b) Notices required by article 5, sections 19 and 20, to 
be filed with the county auditor shall also be filed with the 
district board or joint district board.  
    (c) An appeal may not be taken from an order made under 
section 26 or 27 by the board, joint board of county 
commissioners, district board, or joint district board if the 
order dismisses a petition or refuses to establish a project.  
[40.073] 

                               ARTICLE 4 

                              CHAPTER 103D

                           WATERSHED DISTRICTS
    Section 1.  [103D.001] [CITATION.] 
    This chapter may be cited as "the watershed law."  [112.34 
s. 2] 
    Sec. 2.  [103D.011] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  [112.35 s. 1] 
    Subd. 2.  [AFFECTED.] "Affected" means the jurisdiction or 
property of an entity that receives benefits, is assessed costs, 
or is part of a watershed district.  
    Subd. 3.  [APPRAISERS.] "Appraisers" means the persons 
appointed by the managers to determine and report benefits and 
damages arising from a proposed project.  [112.35 s. 12] 
    Subd. 4.  [AUDITOR.] "Auditor" means the county auditor of 
a county affected by a watershed district.  [112.35 s. 9] 
    Subd. 5.  [BOARD.] "Board" means the board of water and 
soil resources.  [112.35 s. 4] 
    Subd. 6.  [CITY.] "City" means a statutory or home rule 
charter city.  
    Subd. 7.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  [112.35 s. 14] 
    Subd. 8.  [COURT ADMINISTRATOR.] "Court administrator" 
means the court administrator of the district court of the 
county where a judicial proceeding concerning a watershed 
district is pending.  [112.35 s. 10] 
    Subd. 9.  [DIRECTOR.] "Director" means the director of the 
division of waters of the department of natural resources.  
[112.35 s. 13] 
    Subd. 10.  [ENGINEER.] "Engineer" means the engineer 
designated by the managers to act as engineer.  [112.35 s. 11] 
    Subd. 11.  [ESTABLISHMENT PETITION.] "Establishment 
petition" means a petition to establish a watershed district, 
and may consist of one or more separate petitions.  [112.35 s. 
16] 
    Subd. 12.  [HEARING.] "Hearing" means a hearing conducted 
by the managers or the board of water and soil resources.  
[112.35 s. 17] 
    Subd. 13.  [INTERESTED PARTY.] "Interested party" means a 
person or political subdivision with an interest in the pending 
subject matter.  Interested party includes the director or any 
agency of government.  [112.35 s. 18] 
    Subd. 14.  [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 court 
administrator, or can be obtained at the office of the county 
treasurer of the affected county.  [112.35 s. 20] 
    Subd. 15.  [MANAGERS.] "Managers" means the board of 
managers of a watershed district.  [112.35 s. 5] 
    Subd. 16.  [METROPOLITAN AREA.] "Metropolitan area" has the 
meaning given in section 473.121, subdivision 2.  [112.35 s. 22] 
    Subd. 17.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city.  
    Subd. 18.  [PERSON.] "Person" means an individual, firm, 
partnership, association, or corporation, but does not include a 
political subdivision.  [112.35 s. 2] 
    Subd. 19.  [PETITION.] "Petition" means a petition to begin 
a project and may consist of one or more separate petitions.  
[112.35 s. 15] 
    Subd. 20.  [POLITICAL SUBDIVISION.] "Political subdivision" 
means a county, town, school district, or a political division 
or subdivision of the state.  Political subdivision does not 
mean a watershed district unless the context clearly indicates 
watershed districts are to be included.  [112.35 s. 3] 
    Subd. 21.  [PROJECT.] "Project" means planning and 
development, construction, maintenance, repair, or improvement 
of a watershed district for a purpose for which the watershed 
district is established.  [112.35 s. 19] 
    Subd. 22.  [PUBLICATION.] "Publication" means publication 
once a week for two successive weeks as provided in section 
645.11.  [112.35 s. 6] 
    Subd. 23.  [PUBLIC HEALTH.] "Public health" means an act or 
thing that tends to improve the general sanitary conditions of 
the watershed district.  [112.35 s. 7] 
    Subd. 24.  [PUBLIC WELFARE, GENERAL WELFARE, PUBLIC 
BENEFIT.] "Public welfare," "general welfare," and "public 
benefit" mean an act or thing that tends to improve, benefit, or 
contribute to the safety or well-being of the general public, or 
benefit the inhabitants of the watershed district.  [112.35 s. 
8] 
    Subd. 25.  [RESIDENT OWNER.] "Resident owner" means a 
resident of the state who is the owner of property or the 
purchaser of property under a contract for deed.  [112.35 s. 21] 

                   BOARD OF WATER AND SOIL RESOURCES 
    Sec. 3.  [103D.101] [BOARD OF WATER AND SOIL RESOURCES.] 
    Subdivision 1.  [DISTRICT ESTABLISHMENT AUTHORITY.] The 
board has the authority after the filing of an establishment 
petition to: 
    (1) establish a watershed district; 
    (2) define the boundaries of the watershed district; and 
    (3) appoint the first board of managers of a watershed 
district.  [112.36 s. 1] 
    Subd. 2.  [INVESTIGATIONS.] To implement this chapter and 
to hold hearings, the chair and members of the board may 
subpoena witnesses, administer oaths, and compel the production 
of books, records, and other evidence.  [112.39 s. 2] 
    Subd. 3.  [EXAMINATION OF WITNESSES.] (a) The right to 
examine and cross-examine witnesses in board hearings is in the 
same manner as in civil actions.  
    (b) All persons must be sworn in before testifying.  
     (c) Witnesses must receive the same fees and mileage as in 
civil actions.  [112.39 s. 2] 
    Subd. 4.  [RECORDS.] The board must keep a record of all 
proceedings before it and file the record with the secretary of 
the board.  Copies of the record may be obtained on terms and 
conditions prescribed by the board.  [112.39 s. 2] 
    Subd. 5.  [RULES OF PRACTICE.] The board may adopt rules of 
practice for its proceedings and hearings that are consistent 
with this chapter and other provisions of law.  [112.40] 
    Sec. 4.  [103D.105] [BOARD HEARINGS.] 
    Subdivision 1.  [PROCEDURE.] (a) A rulemaking hearing must 
be conducted under chapter 14.  
    (b) A hearing must be conducted as a contested case under 
chapter 14 if the hearing is:  
    (1) in a proceeding to establish or terminate a watershed 
district; or 
    (2) of an appeal under section 40.  
    (c) Notwithstanding chapter 14, other hearings under this 
chapter, except hearings under paragraphs (a) and (b), shall be 
conducted by the board under this section.  The board may refer 
the hearing to one or more members of the board or an 
administrative law judge to hear evidence and make findings of 
fact and report them to the board.  [112.401 s. 1] 
    Subd. 2.  [PROCEDURE FOR NONCONTROVERSIAL PLANS OR 
PETITIONS.] (a) If the board finds that a watershed management 
plan or petition that would be given a hearing under subdivision 
1, paragraph (c), is noncontroversial, the board may proceed 
under this subdivision.  
    (b) The board must give notice that the watershed 
management plan or petition has been filed.  The notice must be 
made:  
    (1) by publication in a legal newspaper in each county 
affected by the watershed district; 
    (2) by mail to the auditor of each county affected by the 
watershed management plan or petition; and 
    (3) by mail to the chief executive officer of each city 
affected.  
    (c) The notice must: 
    (1) describe the actions proposed by the plan or petition; 
    (2) invite written comments on the plan or petition for 
consideration by the board; 
    (3) state that a person who objects to the actions proposed 
in the plan or petition may submit a written request for hearing 
to the board within 30 days of the last publication of the 
notice of filing of the plan or petition; and 
    (4) state that if a timely request for hearing is not 
received, the board may make a decision on the plan or petition 
at a future meeting of the board. 
    (d) If one or more timely requests for hearing are 
received, the board must hold a hearing on the plan or petition. 
[112.401 s. 2] 
    Sec. 5.  [103D.111] [APPEAL OF BOARD ORDERS.] 
    A party that is aggrieved by the decision made by the order 
of the board may appeal the order to the district court.  
[112.401 s. 3] 

                       ESTABLISHMENT OF DISTRICTS 
    Sec. 6.  [103D.201] [WATERSHED DISTRICT PURPOSES.] 
     Subdivision 1.  [GENERAL PURPOSES.] To conserve the natural 
resources of the state by land use planning, flood control, and 
other conservation projects by using sound scientific principles 
for the protection of the public health and welfare and the 
provident use of the natural resources, the establishment of 
watershed districts is authorized under this chapter.  [112.34 
s. 1] 
    Subd. 2.  [SPECIFIC PURPOSES.] A watershed district may be 
established for any of the following purposes: 
    (1) to control or alleviate damage from flood waters; 
    (2) to improve stream channels for drainage, navigation, 
and any other public purpose; 
    (3) to reclaim or fill wet and overflowed land; 
    (4) to provide a water supply for irrigation; 
    (5) to regulate the flow of streams and conserve the 
streams' water; 
    (6) to divert or change all or part of watercourses; 
    (7) to provide or conserve water supply for domestic, 
industrial, recreational, agricultural, or other public use; 
    (8) to provide for sanitation and public health, and 
regulate the use of streams, ditches, or watercourses to dispose 
of waste; 
    (9) to repair, improve, relocate, modify, consolidate, and 
abandon all or part of drainage systems within a watershed 
district; 
    (10) to control or alleviate soil erosion and siltation of 
watercourses or water basins; 
    (11) to regulate improvements by riparian property owners 
of the beds, banks, and shores of lakes, streams, and wetlands 
for preservation and beneficial public use; 
    (12) to provide for hydroelectric power generation; 
    (13) to protect or enhance the water quality in 
watercourses or water basins; and 
    (14) to provide for the protection of groundwater and 
regulate its use to preserve it for beneficial purposes.  
[112.36 s. 2] 
    Sec. 7.  [103D.205] [ESTABLISHMENT PETITION.] 
    Subdivision 1.  [FILING.] To establish a watershed 
district, an establishment petition must be filed with the 
secretary of the board.  [112.37 s. 1] 
    Subd. 2.  [REQUIREMENTS.] (a) The establishment petition 
must state: 
    (1) the name of the proposed watershed district; 
    (2) in general terms, a description of the property to be 
included in the watershed district; 
    (3) the necessity for the watershed district and the 
contemplated improvements within the watershed district; 
    (4) the reasons why the watershed district and the 
contemplated improvements would be conducive to public health 
and public welfare, or would accomplish any of the purposes in 
section 6; 
    (5) by illustration in a map, the proposed watershed 
district; 
    (6) the number of managers proposed for the watershed 
district; and 
    (7) a list of the nominees for manager positions containing 
at least twice the proposed number of managers. 
    (b) The number of managers proposed for a watershed 
district may not be less than three nor more than nine.  A 
manager must not be a public officer of the county, state, or 
federal government, except that a soil and water conservation 
supervisor may be a manager.  [112.37 s. 1a] 
    Subd. 3.  [SIGNATURES.] The establishment petition must be 
signed by one or more of the following groups: 
    (1) one-half or more of the counties within the proposed 
watershed district; 
    (2) counties having 50 percent or more of the area within 
the proposed watershed district; 
    (3) a majority of the cities within the proposed watershed 
district; or 
    (4) 50 or more resident owners residing in the proposed 
watershed district, excluding resident owners within the 
corporate limits of a city if the city has signed the petition.  
[112.37 s. 1] 
    Subd. 4.  [FILING ESTABLISHMENT PETITIONS.] The petitioners 
must file a copy of the establishment petition with the auditors 
of the counties affected by the proposed watershed district, the 
commissioner, and the director.  The original establishment 
petition, with a signed statement of delivery or receipt for 
each of the establishment petitions submitted to the auditors of 
affected counties, the commissioners, and the directors, must be 
filed with the secretary of the board.  [112.37 s. 1b] 
    Subd. 5.  [SIMILAR AND DUPLICATE ESTABLISHMENT 
PETITIONS.] Similar and duplicate establishment petitions for 
the same proposed watershed district may be filed and regarded 
as one establishment petition.  All establishment petitions 
filed before the establishment hearing must be considered by the 
board as part of the original petition.  [112.37 s. 5] 
    Subd. 6.  [DEFECTIVE ESTABLISHMENT PETITION.] An 
establishment petition that has the requisite number of 
petitioner signatures may not be dismissed because of defects in 
the establishment petition.  The board must allow petitioners to 
amend a defective establishment petition at any time before the 
end of the establishment hearing.  [112.37 s. 5] 
    Subd. 7.  [WITHDRAWAL OF PETITIONERS.] After an 
establishment petition has been filed, a petitioner may not 
withdraw from the establishment petition unless the withdrawing 
petitioner obtains the written consent of all other petitioners 
and files the written consent with the board.  [112.37 s. 5] 
    Sec. 8.  [103D.211] [AUDITOR'S CERTIFICATION OF 
PETITIONERS.] 
    An auditor that receives a copy of an establishment 
petition must determine if the petitioners are resident owners 
from the tax records.  The tax records are prima facie evidence 
of ownership.  The auditor must certify the number of 
petitioners that are resident owners and file the certification 
with the board.  [112.37 s. 2] 
    Sec. 9.  [103D.215] [DIRECTOR'S REPORT.] 
    (a) After receiving a copy of the establishment petition, 
the director must notify the board that an establishment 
petition has been received and prepare a preliminary watershed 
map of and a preliminary report about the watershed district. 
    (b) The preliminary watershed map must show the natural 
watershed boundaries within the proposed watershed district. 
    (c) The preliminary report must be based on the 
establishment petition and other available data and must 
recommend whether the watershed district should be established. 
    (d) The director must submit the preliminary report and the 
preliminary watershed map to the board within 30 days after the 
date the establishment petition was received by the director, 
unless the time is extended by the board.  [112.37 s. 3] 
    Sec. 10.  [103D.221] [ESTABLISHMENT HEARING NOTICE.] 
    Subdivision 1.  [ORDER FOR HEARING.] (a) After receiving an 
establishment petition, the board must determine whether the 
establishment petition has the requisite number of petitioner 
signatures.  
     (b) If the establishment petition does not have the 
requisite number of petitioners, the board must dismiss the 
establishment petition and return it to the petitioners with an 
explanation of why the petition was dismissed.  
     (c) If the board determines that an establishment petition 
has the requisite number of petitioner signatures, the board 
must, by order, set a time and location for a hearing on the 
establishment petition within 35 days after its determination.  
The hearing must be held within the limits of the proposed 
watershed district for an establishment hearing unless the board 
determines a suitable place is not located within the proposed 
watershed district and selects a place within the limits of a 
county affected by the proposed watershed district.  [112.38] 
    Subd. 2.  [NOTICE.] (a) The board must give notice of the 
establishment hearing by publication in a legal newspaper that 
is published in counties affected by the proposed watershed 
district.  The last publication must occur at least ten days 
before the establishment hearing. 
    (b) The board must give notice of the establishment hearing 
by mail to the auditors of counties and to the chief executive 
officials of municipalities affected by the proposed watershed 
district.  
    (c) The notice must include: 
    (1) a statement that an establishment petition has been 
filed with the board and auditors of counties affected by the 
proposed watershed district; 
    (2) a general description of the purpose of the proposed 
watershed district's contemplated improvements; 
    (3) a general description of the property to be included in 
the proposed watershed district; 
    (4) the date, time, and location of hearing; and 
    (5) a statement that all persons affected or interested in 
the establishment of the proposed watershed district may attend 
and give statements at the establishment hearing.  [112.38] 
    Sec. 11.  [103D.225] [ESTABLISHMENT HEARING.] 
    Subdivision 1.  [TESTIMONY AND CONTINUANCE.] (a) The board 
must allow all persons interested in or affected by the proposed 
watershed district to be given an opportunity to make oral and 
written statements at the establishment hearing. 
    (b) The board may continue the establishment hearing.  
[112.39 s. 1] 
    Subd. 2.  [ESTABLISHMENT DETERMINATION.] If the board 
determines after the establishment hearing that the 
establishment of the proposed watershed district would benefit 
the public welfare and public interest, and would advance the 
purpose of this chapter, the board must, by order, establish the 
watershed district.  [112.39 s. 3] 
    Subd. 3.  [ESTABLISHMENT ORDER REQUIREMENTS.] The order of 
the board establishing a watershed district must include:  
    (1) the findings of the board supporting its determination 
to establish the watershed district; 
    (2) the official name of the watershed district; 
    (3) the location of the principal place of business of the 
watershed district; 
    (4) the boundaries of the watershed district; and 
    (5) the names of the managers for the first board of 
managers selected under subdivision 4.  [112.39 s. 3, 4] 
    Subd. 4.  [SELECTION OF FIRST BOARD OF MANAGERS.] (a) The 
board shall select the first board of managers of a proposed 
watershed district from the list of nominees in the 
establishment petition except as provided in paragraph (b).  The 
number of managers may not be less than three nor more than 
nine, except that a proposed watershed district entirely within 
the metropolitan area may not have fewer than five managers.  A 
manager may not be a public officer of the county, state, or 
federal government, except that a soil and water conservation 
supervisor may be a manager.  The term of the first board of 
managers is for one year and until their successors can be 
appointed and qualified.  [112.37 s. 1a, 7; 112.39 s. 4] 
     (b) For a proposed watershed district entirely within the 
metropolitan area, the board must select managers from a list of 
persons nominated by one or more of the cities and towns 
affected by the proposed watershed district.  The list must 
contain at least three nominees for each manager position.  The 
board must select managers to fairly represent the various 
hydrologic areas within the proposed watershed district 
according to their residence within an area.  If the cities or 
towns fail to nominate managers under this paragraph, the board 
shall select managers under paragraph (a).  [112.37 s. 7] 
     (c) In the order establishing a watershed district, the 
board must prescribe the terms of office for the first board of 
managers appointed by the county boards as provided in 
paragraphs (d) to (f).  
     (d) If the first board of managers has three members, the 
term of office for the managers is one for a term of one year, 
one for a term of two years, and one for a term of three years. 
    (e) If the first board of managers has five members, the 
term of office for the managers is one for a term of one year, 
two for a term of two years, and two for a term of three years. 
    (f) If the first board of managers does not have three or 
five members, the managers must be appointed so that as nearly 
as possible one-third serve terms of one year, one-third serve 
terms of two years, and one-third serve terms of three years.  
[112.42 s. 3] 
    Subd. 5.  [FILING ESTABLISHMENT ORDER.] The board must file 
a certified copy of the findings and order establishing a 
watershed district with the secretary of state and, at the same 
time:  
    (1) mail a copy of the findings and order to the auditor of 
each county affected by the watershed district, the 
commissioner, and the director; and 
    (2) have each manager personally served with a copy of the 
order.  [112.42 s. 1, 5] 
    Subd. 6.  [EFFECT OF ESTABLISHMENT.] After the 
establishment order is filed with the secretary of state, the 
watershed district is a political subdivision of the state with 
the power, authority, and duties prescribed in this chapter.  
[112.34 s. 1; 112.39 s. 3] 
    Subd. 7.  [EXISTENCE OF WATERSHED DISTRICT.] A watershed 
district established under this chapter exists from the time the 
order establishing the watershed district is filed with the 
secretary of state until the watershed district is terminated.  
[112.39 s. 3; 112.41] 
    Sec. 12.  [103D.231] [DISMISSAL OF ESTABLISHMENT 
PROCEEDINGS.] 
    If the board determines that establishment of a proposed 
watershed district in an establishment petition would not 
benefit the public welfare and public interest, or would not 
serve the purpose of this chapter, the board must, by order, 
dismiss the establishment proceedings.  A copy of the order 
dismissing the establishment proceeding must be mailed 
immediately to the auditors of counties affected by the proposed 
watershed district, the commissioner, and the director.  [112.39 
s. 6] 

                   CONSOLIDATION AND BOUNDARY CHANGES 
    Sec. 13.  [103D.251] [WATERSHED DISTRICT BOUNDARY CHANGES.] 
    Subdivision 1.  [BOUNDARY REQUIREMENT.] The boundaries of a 
watershed district as established or changed must define 
contiguous areas.  The boundaries may include all or part of one 
or more watersheds or counties.  [112.36 s. 1] 
    Subd. 2.  [PROCEDURE.] The boundaries of a watershed 
district may be changed as provided in this section, and for a 
watershed district entirely within the metropolitan area the 
boundary may also be changed as provided in article 2, sections 
8 and 10.  [473.8771 s. 1, 3] 
    Subd. 3.  [INITIATION.] A proceeding to change the boundary 
of a watershed district must be initiated by a petition to the 
board requesting the boundary change.  [112.37 s. 1] 
    Subd. 4.  [PETITION.] A petition for a watershed district 
boundary change must state: 
    (1) the names of watershed districts affected by the 
proposed boundary changes; 
    (2) a description, in general terms, of the property 
affected by the proposed boundary change; 
    (3) reasons why the proposed boundary change would benefit 
the affected watershed districts; 
    (4) by illustration in a map, the proposed boundary change, 
including watershed districts affected by the proposed boundary 
change; and 
    (5) a request for the board to establish the proposed 
boundary change.  [112.37 s. 1; 112.39 s. 4] 
    Subd. 5.  [PETITION SIGNATURES.] (a) A petition for a 
watershed boundary change must be signed by: 
    (1) at least one-half of the counties within the proposed 
watershed district if the boundary change were adopted; 
    (2) counties having at least 50 percent of the area within 
the proposed watershed district if the boundary change were 
adopted; 
    (3) a majority of the cities within the proposed watershed 
district if the boundary change were adopted; 
    (4) at least 50 resident owners in the proposed watershed 
district if the boundary change were adopted, excluding resident 
owners within the corporate limits of a city, if the city has 
signed the petition; or 
    (5) the managers of a watershed district affected by the 
proposed boundary change. 
    (b) The managers must pass a resolution authorizing the 
boundary change before the managers sign a petition for a 
boundary change.  [112.37 s. 1; 112.39 s. 4] 
    Subd. 6.  [HEARING.] The board must set a time and location 
for a hearing and give notice of the hearing in the same manner 
as an establishment hearing.  If a petition for a boundary 
change involves a common boundary of two or more watershed 
districts, the board must determine the watershed district where 
the hearing will be held.  [112.39 s. 4] 
    Subd. 7.  [ESTABLISHMENT OF BOUNDARY CHANGE.] (a) After the 
hearing on the petition for a boundary change, the board must 
establish the proposed boundary change, by order, if the board 
determines that establishment of the proposed boundary change 
would benefit the public welfare and public interest and the 
proposed boundary change would advance the purpose of this 
chapter. 
    (b) In the order establishing the boundary change, the 
board must include: 
    (1) the findings of the board supporting its determination 
to establish the boundary change; and 
    (2) the boundaries of watershed districts affected by the 
boundary change. 
    (c) The board must file a certified copy of the findings 
and order establishing the boundary change with the secretary of 
state and, at the same time, mail a copy of the order to the 
auditors of counties affected by the change, the commissioner, 
the director, and the managers of watershed districts affected 
by the change. 
    (d) The boundary change is effective the day the certified 
order establishing the boundary change is filed with the 
secretary of state.  [112.39 s. 3, 4, 5] 
    Subd. 8.  [DISMISSAL OF PROCEEDINGS.] If the board 
determines that a watershed district boundary change would not 
benefit the public welfare and public interest or would not 
serve the purposes of this chapter, the board must, by order, 
dismiss proceedings to change a watershed district boundary.  A 
copy of the order dismissing the boundary change proceedings 
must be mailed to auditors of counties affected by the proposed 
boundary change, the commissioner, the director, and the boards 
of managers of watershed districts affected by the proposed 
boundary change.  [112.39 s. 4, 6] 
    Sec. 14.  [103D.255] [WITHDRAWAL OF TERRITORY.] 
    Subdivision 1.  [PETITION.] (a) Proceedings to withdraw 
territory from an existing watershed district must be initiated 
by a petition filed with the secretary of the board.  
    (b) The required signatures on a petition for withdrawal 
are the same as prescribed for an establishment petition, but 
the percentages must be calculated only with reference to the 
territory that is proposed to be withdrawn from the watershed 
district.  
    (c) The petition must state that: 
    (1) the territory described has not received or will not 
receive any benefits from the operation of the watershed 
districts; 
    (2) the watershed district can perform the functions for 
which it was established without the inclusion of the territory; 
and 
    (3) the territory is not, in fact, a part of the watershed. 
    (d) The petition must request the release of the described 
territory from the watershed district. 
    (e) The petition must be served on the board and any 
affected watershed district, and the board shall proceed as 
prescribed for an establishment petition.  The requirements for 
notices and public hearings are as prescribed for the 
establishment petition.  [112.85 s. 1] 
    Subd. 2.  [BOARD'S ORDER OF WITHDRAWAL.] (a) After the 
hearing the board may issue an order releasing the territory, or 
a part of the territory, as described in the petition, if the 
board determines that:  
    (1) the territory described in the petition has not 
received and will not receive any benefit from the operation of 
the watershed district; 
    (2) the watershed district can perform the functions for 
which it was established without the inclusion of the territory; 
and 
    (3) the territory is not, in fact, a part of the watershed. 
    (b) Property may not be released that has been determined 
subject to benefits or damages for a project previously 
constructed.  
    (c) Property released remains liable for the proportionate 
share of any indebtedness existing at the time of the order.  
Levies on the property released continue in force until fully 
paid.  
    (d) If the board determines that the order prescribing the 
distribution of managers should be amended following the 
withdrawal of any territory, the board may direct redistribution 
of managers in the order authorizing the withdrawal.  [112.85 s. 
2] 
    Sec. 15.  [103D.261] [PROCEEDINGS TO ENLARGE A WATERSHED 
DISTRICT.] 
    Subdivision 1.  [PETITION.] (a) Proceedings to enlarge an 
existing watershed district must be initiated by a petition 
filed with the secretary of the board.  The required signatures 
on a petition to enlarge are the same as for an establishment 
petition, but the percentages must be calculated only with 
reference to the territory that is proposed to be added to the 
watershed district.  The petition must: 
    (1) state that the area to be added is contiguous to the 
existing watershed district; 
    (2) state that the area can be feasibly administered by the 
managers of the existing watershed district; 
    (3) state reasons why adding the area to the existing 
watershed district would be conducive to the public health and 
welfare; 
    (4) include a map of the affected area; 
    (5) state the name of the proposed enlarged watershed 
district, if other than that of the existing watershed district; 
and 
    (6) state a request for the addition of the proposed 
territory. 
    (b) The petition must be served on the board and affected 
watershed districts, and the board must proceed as prescribed 
for an establishment petition.  
    (c) The requirement of notice and public hearings is as 
prescribed for the establishment petition.  [112.761 s. 1] 
    Subd. 2.  [BOARD ORDER.] (a) After the hearing, if the 
board determines that the enlargement of the watershed district 
as asked for in the petition would be for the public welfare and 
public interest and the purpose of this chapter would be served, 
the board shall, by making findings and an order, enlarge the 
watershed district and file a certified copy of the findings and 
order with the secretary of state.  
    (b) The name of the watershed district may be changed by 
order of the board if requested in the petition to enlarge the 
watershed district.  [112.761 s. 2] 
    Subd. 3.  [DISTRIBUTION OF MANAGERS IN ENLARGED WATERSHED 
DISTRICT.] If the enlarged watershed district affects more than 
one county, the distribution of the managers among the counties 
affected shall be as directed by the board in the order 
enlarging the watershed district.  [112.761 s. 3] 
    Sec. 16.  [103D.265] [CONSOLIDATION OF DISTRICTS.] 
    Subdivision 1.  [PETITION.] (a) Proceedings for the 
consolidation of two or more watershed districts must be 
initiated by a petition filed with the board.  
     (b) The petition must be signed by each watershed district 
affected and state: 
    (1) the names of the watershed districts to be 
consolidated; 
    (2) that the watershed districts are adjoining; 
    (3) that the consolidated watershed districts can be 
feasibly administered as one watershed district; 
    (4) the proposed name of the consolidated watershed 
district; 
    (5) the reasons why it would be conducive to the public 
health, convenience and welfare to consolidate the watershed 
districts; and 
    (6) a request for the consolidation.  
    (c) The petition must be served and the board shall proceed 
as prescribed for an establishment petition.  The requirement of 
notice and public hearings are as prescribed for the 
establishment petition.  [112.86 s. 1] 
    Subd. 2.  [BOARD'S ORDER AND FINDINGS.] (a) After the 
hearing, if the board determines that consolidation of the 
watershed districts as asked in the petition would serve the 
public welfare, public interest, and the purpose of this 
chapter, the board shall, by its findings and order, consolidate 
the watershed districts.  
    (b) The board shall file a certified copy of the findings 
and order with the secretary of state.  
    (c) The name of the watershed district may be changed by 
order of the board.  [112.86 s. 2] 
    Subd. 3.  [NEW MANAGERS.] (a) The term of office of the 
managers of the consolidated watershed districts ends on the 
date of the order of consolidation.  Distribution of the 
managers of the consolidated watershed district shall be as 
directed by the board in the order of consolidation.  
    (b) Five managers of the consolidated watershed district 
must be appointed from the managers of the consolidated 
watershed districts.  Their first term shall be for one year.  
After the first year, the managers must be appointed as provided 
in this chapter.  [112.86 s. 3] 
    Subd. 4.  [WATERSHED DISTRICT ASSETS AND LIABILITIES.] (a) 
The real and personal property assets of the watershed districts 
involved and all legally valid and enforceable claims and 
contract obligations of the watershed districts pass to the new 
watershed district.  
    (b) Levies on the property of the watershed districts 
consolidated continue in force until fully paid.  
    (c) Property in the watershed districts remains liable for 
its proportionate share of indebtedness existing at the time of 
the order.  [112.86 s. 4] 
    Subd. 5.  [NEW PLAN.] The watershed management plans of the 
watershed districts that were consolidated become the watershed 
management plan of the consolidated watershed district.  [112.86 
s. 5] 

                              TERMINATION 
    Sec. 17.  [103D.271] [PROCEDURE FOR TERMINATION OF 
WATERSHED DISTRICT.] 
    Subdivision 1.  [PROCEDURE.] A watershed district may be 
terminated under this section and a watershed district entirely 
within the metropolitan area may also be terminated under 
article 2, sections 9 and 10.  [473.8771 s. 2, 3] 
    Subd. 2.  [INITIATION.] Proceedings for the termination of 
a watershed district may only be initiated by filing a 
termination petition with the secretary of the board.  [112.411 
s. 1] 
    Subd. 3.  [FREQUENCY OF TERMINATION PETITION.] The board 
may not accept a termination petition within five years from the 
date of a watershed district's establishment.  The board may not 
make determinations or accept termination petitions for 
watershed districts more than once in five years.  [112.411 s. 
5] 
    Subd. 4.  [TERMINATION PETITION.] (a) The termination 
petition must be signed by at least 25 percent of the resident 
owners residing in the watershed district.  The termination 
petition must state that the existence of the watershed district 
does not benefit the public welfare and public interest and the 
watershed district is not needed to accomplish the purposes of 
this chapter.  
    (b) The petitioners must file a copy of the termination 
petition with the auditors of the counties affected by the 
watershed district.  The original termination petition with a 
statement signed for delivery or receipt of each of the 
termination petitions submitted to the auditors of counties 
affected by the watershed district must be filed with the 
secretary of the board.  [112.411 s. 1] 
    Subd. 5.  [AUDITOR'S DETERMINATION OF RESIDENT OWNERS.] An 
auditor who receives a termination petition must determine from 
the tax records whether the petitioners are resident owners 
within the watershed district.  The auditor must certify the 
number of petitioners that are resident owners and file the 
certification with the board.  [112.411 s. 2] 
    Subd. 6.  [PETITIONERS' BOND.] Before the board gives 
notice of a termination hearing, the petitioners must file a 
bond with the board.  The bond must be in an amount determined 
by the board and is subject to the board's approval.  The bond 
must state that the petitioners will pay all costs and expenses 
of the termination proceedings if the termination petition 
proceedings are dismissed or denied.  [112.411 s. 3] 
    Subd. 7.  [TERMINATION HEARING ORDER.] When the board 
determines a termination petition has been filed that meets the 
requirements of subdivisions 4 and 5 and the petitioners' bond 
has been filed, the board must, by order, set a time by 35 days 
after its determination and a location within the watershed 
district for a termination hearing.  [112.411 s. 4] 
    Subd. 8.  [HEARING NOTICE.] (a) The board must give notice 
of the termination hearing by publication in a legal newspaper 
that is published in counties affected by the watershed 
district.  The last publication must occur at least ten days 
before the termination hearing.  
    (b) The board must give notice of the termination hearing 
by mail to the auditors of counties and to the chief executive 
officials of municipalities affected by the watershed district. 
    (c) The notice must include: 
    (1) a statement that a termination petition has been filed 
with the board and auditors of the counties affected by the 
watershed district; 
    (2) a general description of why the watershed district is 
to be terminated; 
    (3) a general description of the property within the 
watershed district; 
    (4) the date, time, and location of the hearing; and 
    (5) a statement that all persons affected by or interested 
in the watershed district may attend and give statements at the 
termination hearing.  [112.38; 112.411 s. 4] 
    Subd. 9.  [TERMINATION HEARING.] The board must allow all 
persons affected by or interested in the watershed district to 
make oral and written statements at the termination hearing.  
The board may continue the termination hearing.  [112.39 s. 1; 
112.411 s. 4] 
    Subd. 10.  [TERMINATION ORDER.] (a) If, after the 
termination hearing, the board determines that the existence of 
the watershed district does not benefit the public welfare and 
public interest and the watershed district is not needed to 
accomplish the purpose of this chapter, the board must issue a 
termination order.  
    (b) The termination order must include findings that 
support termination of the watershed district and a statement 
that the watershed district is terminated.  
    (c) The board must file a certified copy of the termination 
order with the secretary of state.  
    (d) A watershed district ceases to be a political 
subdivision and ceases to exist when a termination order for the 
watershed district is filed with the secretary of state.  
[112.411 s. 4] 

                                MANAGERS 
    Sec. 18.  [103D.301] [DISTRIBUTION OF MANAGER POSITIONS.] 
    Subdivision 1.  [MORE THAN ONE AFFECTED COUNTY.] If more 
than one county is affected by a watershed district, the board 
must provide that managers are distributed by residence among 
the counties affected by the watershed district.  [112.42 s. 3] 
    Subd. 2.  [MORE THAN FIVE AFFECTED COUNTIES.] If more than 
five counties are affected by a watershed district, the board 
may provide for the orderly distribution of the managers by 
identifying the manager areas within the watershed district and 
selecting the county board of commissioners for each manager's 
area to appoint a manager.  [112.42 s. 3] 
    Subd. 3.  [REDISTRIBUTION.] (a) After ten years from the 
establishment of the watershed district, the county board of 
commissioners of a county affected by the watershed district may 
petition the board to redistribute the managers.  After holding 
a public hearing on redistributing the managers, the board may 
redistribute the managers among the counties affected by the 
watershed district if the redistribution is in accordance with 
the policy and purposes of this chapter. 
    (b) A petition for the redistribution of managers may not 
be filed with the board more often than once in ten years.  
[112.42 s. 3] 
    (c) If more than one county is affected by a watershed 
district, the board must distribute the one-, two-, and 
three-year terms among counties affected by the watershed 
district.  [112.42 s. 3] 
    Sec. 19.  [103D.305] [INCREASING NUMBER OF MANAGERS.] 
    Subdivision 1.  [INITIATION.] A proceeding to increase the 
number of managers of a watershed district must be initiated by 
filing a petition with the secretary of the board. [112.421 s. 
1] 
    Subd. 2.  [PETITION SIGNATURES.] The petition to increase 
the number of managers must request the increase and be signed 
by one or more of the following groups: 
    (1) one-half or more of the counties within the watershed 
district; 
    (2) counties with 50 percent or more of the area within the 
watershed district; 
    (3) a majority or greater number of the cities within the 
watershed district; 
    (4) 50 or more resident owners residing in the watershed 
district, excluding resident owners within the corporate limits 
of a city if the city has signed the petition; or 
    (5) the managers of the watershed district.  [112.37 s. 1; 
112.421 s. 1] 
    Subd. 3.  [HEARING ORDER.] When the board receives a 
petition to increase the number of managers of a watershed 
district, the board must order a hearing on the petition.  
[112.421 s. 1] 
    Subd. 4.  [HEARING NOTICE.] (a) The board must give notice 
of the hearing to increase the number of managers by publication 
in a legal newspaper published in counties affected by the 
watershed district.  The last publication must occur at least 
ten days before the hearing. 
    (b) The board must give notice of the hearing by mail to 
the auditors of counties and to the chief executive officials of 
municipalities affected by the watershed district.  
    (c) The notice must include: 
    (1) a statement that a petition to increase the number of 
managers of the watershed district has been filed with the 
board; 
    (2) a general description of the purpose of the watershed 
district; 
    (3) a general description of the property in the watershed 
district; 
    (4) the date, time, and location of the hearing; and 
    (5) a statement that all persons affected or interested in 
the watershed district may attend and give statements at the 
hearing.  [112.38; 112.421 s. 1] 
    Subd. 5.  [HEARING.] (a) If the board determines at the 
hearing that an increase in the number of managers would benefit 
the public welfare, public interest, and the purpose of this 
chapter, the board must increase the number of managers. 
    (b) If the watershed district affects more than one county, 
the board, by order, must direct the distribution of the 
managers among the affected counties.  [112.421 s. 2] 
    Sec. 20.  [103D.311] [APPOINTMENT OF MANAGERS.] 
    Subdivision 1.  [MANAGER QUALIFICATIONS.] A person may not 
be appointed as a manager who: 
    (1) is not a voting resident of the watershed district; and 
    (2) is a public officer of the county, state, or federal 
government, except that a soil and water conservation supervisor 
may be a manager.  [112.42 s. 3] 
    Subd. 2.  [APPOINTMENT.] (a) At least 30 days before the 
terms of office of the first managers named by the board expire, 
the county commissioners of each county affected by the 
watershed district must meet and appoint successors.  
    (b) The county commissioners must meet at least 30 days 
before the term of office of any manager expires and appoint a 
successor.  
    (c) A vacancy occurring in an office of a manager must be 
filled by the appointing county board.  [112.42 s. 3] 
    Subd. 3.  [NOMINEES FOR CITY INITIATED AND METROPOLITAN 
WATERSHED DISTRICTS.] (a) If the establishment petition that 
initiated the watershed district originated from a majority of 
the cities within the watershed district, or if the watershed 
district is located entirely within the metropolitan area, the 
county commissioners must appoint the managers from a list of 
persons nominated by one or more of the townships and 
municipalities located within the watershed district.  The list 
must contain at least three nominees for each manager's position 
to be filled.  The list must be submitted to the county boards 
affected by the watershed district at least 60 days before the 
manager's term of office expires. 
    (b) If the list is not submitted 60 days before the 
managers' terms of office expire, the county commissioners must 
appoint the managers from eligible persons residing in the 
watershed district. 
    (c) Managers of a watershed district entirely within the 
metropolitan area must be appointed to fairly represent the 
various hydrologic areas within the watershed district by 
residence of the manager appointed.  [112.42 s. 3] 
    Subd. 4.  [RECORD OF APPOINTED MANAGERS.] A record of all 
appointments made under this section must be filed with the 
county auditor of each county affected by the watershed 
district, the secretary of the board of managers, and the 
secretary of the board of water and soil resources.  [112.42 s. 
3] 
    Sec. 21.  [103D.315] [MANAGERS.] 
    Subdivision 1.  [OATH.] Each manager must take and sign the 
oath defined in the Minnesota Constitution, article V, section 
6.  The signed oath must be filed with the secretary of the 
board.  [112.42 s. 1] 
    Subd. 2.  [BOND.] (a) Each manager must file a bond with 
the board before assuming the manager's duties.  The bond may be:
    (1) a personal bond for each manager; 
    (2) a schedule or position bond or undertaking by the 
managers of the watershed district; or 
    (3) a single corporate surety fidelity, schedule or 
position bond or undertaking covering all managers and employees 
of the watershed district, including officers and employees 
required by law to furnish an individual bond or undertaking. 
    (b) The amount of the bond for managers is $1,000, unless 
increased by the board.  The amount of the bond for officers and 
employees of the watershed district is the amount set by law or 
by the person or board authorized to set the amounts. 
    (c) The bond must be conditioned substantially as provided 
in section 574.13. 
    (d) The premium for the bond must be paid by the watershed 
district.  [112.42 s. 1a] 
    Subd. 3.  [OFFICERS.] After filing the bond, the managers 
must elect different managers as president, secretary, and 
treasurer.  The managers must fill vacancies occurring in the 
officers' positions.  The managers must provide the necessary 
books, records, furniture, and equipment for the officers to 
perform their official duties.  [112.42 s. 1a] 
    Subd. 4.  [SEAL.] The managers must adopt a seal for the 
watershed district.  [112.42 s. 2] 
    Subd. 5.  [RECORDS.] The managers must keep efficient 
records of all proceedings, minutes, certificates, contracts, 
bonds of the board's employees, and all other business 
transacted or action taken by the managers.  The records must be 
open to inspection by the property owners within the watershed 
district and all other interested parties at all reasonable 
times.  [112.42 s. 2] 
    Subd. 6.  [TERMS OF OFFICE.] The term of office for a 
manager is three years except for the first board of managers 
appointed by the state board and the first board appointed by 
the county board.  A manager's term continues until a successor 
is appointed and qualified.  [112.42 s. 3] 
    Subd. 7.  [VACANCIES.] The provisions of section 351.02 
regarding vacancies apply to members of the board of managers. 
[112.42 s. 4] 
    Subd. 8.  [COMPENSATION.] The compensation of managers for 
meetings and for performance of other necessary duties may not 
exceed $50 a day.  Managers are entitled to reimbursement for 
traveling and other necessary expenses incurred in the 
performance of official duties.  [112.42 s. 5] 
    Subd. 9.  [FIRST MEETING OF MANAGERS.] (a) Within ten days 
after the first board of managers has received notice by 
personal service of their selection, the managers must meet at 
the watershed district's principal place of business.  
     (b) At the first meeting, the managers must take the oath 
under subdivision 1, provide a bond under subdivision 2, elect 
officers under subdivision 3, and appoint an advisory committee 
under section 24.  [112.42 s. 1; 112.44] 
    Subd. 10.  [MEETINGS.] The managers shall meet annually and 
at other necessary times to transact the business of the 
watershed district.  A meeting may be called at any time at the 
request of any manager.  When a manager requests a meeting, the 
secretary of the watershed district must mail a notice of the 
meeting to each member at least eight days before the meeting.  
[112.42 s. 7] 
    Subd. 11.  [ADMINISTRATION BYLAWS AND RULES.] The managers 
shall adopt bylaws and rules for the administration of the 
business and affairs of the watershed district.  Rules adopted 
under this subdivision are not subject to section 26.  [112.42 
s. 6] 
    Sec. 22.  [103D.321] [PRINCIPAL PLACE OF BUSINESS] 
    Subdivision 1.  [UNAVAILABLE PUBLIC FACILITIES.] If public 
facilities are not available for a watershed district's 
principal place of business within the watershed district, the 
board shall determine and designate the nearest suitable public 
facility as the watershed district's principal place of business.
[112.42 s. 7] 
    Subd. 2.  [CHANGE OF PRINCIPAL PLACE OF BUSINESS.] (a) The 
managers may initiate a change of the principal place of 
business to a different location within the watershed district 
by passing a resolution stating the proposed change of 
location.  After passing the resolution, the managers must set a 
time and location for a hearing on the change of the principal 
place of business.  
    (b) The managers must give notice of the hearing by 
publication in a legal newspaper, published in the counties 
affected by the watershed district, with the last publication 
occurring at least ten days before the hearing.  Notice of the 
hearing must be mailed to the auditors of counties affected by 
the watershed district ten days before the hearing.  After the 
hearing, the managers may, by order, change the place of 
business.  
    (c) The change of the principal place of business of the 
watershed district is effective when a certified copy of the 
managers' order is filed with the secretary of state and the 
secretary of the board.  [112.39 s. 4] 
    Sec. 23.  [103D.325] [EMPLOYEES.] 
    Subdivision 1.  [EMPLOYMENT AUTHORITY.] The managers may 
employ a chief engineer, professional assistants, and other 
employees, and provide for their qualifications, duties, and 
compensation.  [112.45] 
    Subd. 2.  [BOND.] The managers may require an officer or 
employee of the watershed district to give a bond for the 
faithful performance of duties in an amount prescribed by the 
manager.  The cost of the bond must be paid from the funds of 
the watershed district.  [112.45] 
    Subd. 3.  [CHIEF ENGINEER.] The chief engineer is 
superintendent of all the works and improvements undertaken by 
the district.  The chief engineer must make a full engineer's 
report to the managers each year, and more often if necessary.  
A copy of the engineer's report and all recommendations by the 
chief engineer must be transmitted to the managers and the 
director.  [112.45] 
    Sec. 24.  [103D.331] [ADVISORY COMMITTEE.] 
    Subdivision 1.  [PURPOSE.] The managers must appoint an 
advisory committee to advise and assist the managers on all 
matters affecting the interests of the watershed district and 
make recommendations to the managers on all contemplated 
projects and improvements in the watershed district.  [112.44] 
    Subd. 2.  [MEMBERS.] (a) The advisory committee consists of 
at least five members.  If practicable, the advisory committee 
members selected must include a supervisor of a soil and water 
conservation district, a member of a county board, a member of a 
sporting organization, and a member of a farm organization.  
Other advisory committee members may be appointed at the 
discretion of the managers.  The members must be residents of 
the watershed district and serve at the pleasure of the managers.
    (b) In addition, the managers may appoint other interested 
and technical persons who may or may not reside within the 
watershed district to serve at the pleasure of the managers.  
[112.44] 
    Subd. 3.  [EXPENSE REIMBURSEMENT.] The managers may 
reimburse members of the advisory committee for actual traveling 
and other necessary expenses incurred in the performance of 
duties in the amount as provided for state employees.  [112.44] 
    Sec. 25.  [103D.335] [DISTRICT AND MANAGERS' POWERS.] 
    Subdivision 1.  [GENERAL POWERS OF WATERSHED DISTRICT.] A 
watershed district has the power, to the extent necessary for 
lawful conservation purposes:  
    (1) to sue and be sued; 
    (2) to incur debts, liabilities, and obligations; 
    (3) to exercise the power of eminent domain; 
    (4) to provide for assessments and to issue certificates, 
warrants, and bonds; and 
    (5) to perform all acts expressly authorized, and all other 
acts necessary and proper for the watershed district to carry 
out and exercise the powers expressly vested in it.  [112.41] 
    Subd. 2.  [JOINT POWERS.] Section 471.59 relating to joint 
power authority applies to watershed districts organized under 
this chapter.  [112.68] 
    Subd. 3.  [ACQUISITION AND DISPOSITION OF PROPERTY FROM 
STATE AND FEDERAL AGENCIES.] Section 471.64 relating to 
acquisition and disposition of property from the United States 
and state agencies applies to watershed districts organized 
under this chapter.  [112.68] 
    Subd. 4.  [GENERAL MANAGERS' POWERS.] (a) The managers may 
use the powers in subdivisions 5 to 23 to implement this chapter.
[112.43 s. 1] 
     (b) The exercise of the managers' powers is subject to 
review by the board as provided in this chapter.  [112.43 s. 4] 
    Subd. 5.  [DATA ACQUISITION.] The managers may: 
    (1) make necessary surveys or use other reliable surveys 
and data and develop projects to accomplish the purposes for 
which the watershed district is organized; and 
    (2) establish and maintain devices for acquiring and 
recording hydrological data.  [112.43 s. 1] 
    Subd. 6.  [PROJECTS NOT REQUIRING A PETITION.] The managers 
may initiate, undertake, and construct projects not required to 
be instituted by a petition under section 53.  [112.43 s. 1] 
    Subd. 7.  [COOPERATE WITH OTHER ENTITIES.] The managers may 
cooperate or contract with any state or subdivision of a state 
or federal agency, private corporation, political subdivision, 
or cooperative association.  [112.43 s. 1] 
    Subd. 8.  [DITCH AND WATERCOURSE WORK.] The managers may 
construct, clean, repair, alter, abandon, consolidate, reclaim, 
or change the course or terminus of any public ditch, drain, 
sewer, river, watercourse, natural or artificial, within the 
watershed district.  [112.43 s. 1] 
    Subd. 9.  [WATER CONTROL WORKS.] The managers may acquire, 
operate, construct, and maintain dams, dikes, reservoirs, water 
supply systems, and appurtenant works.  [112.43 s. 1] 
    Subd. 10.  [WATER USE AND CONSERVATION.] The managers may 
regulate, conserve, and control the use of water within the 
watershed district.  [112.43 s. 1] 
    Subd. 11.  [ACQUISITION OF PROPERTY.] The managers may 
acquire by gift, purchase, or the right of eminent domain 
necessary real and personal property.  The watershed district 
may acquire property outside the watershed district where 
necessary for a water supply system.  [112.43 s. 1] 
    Subd. 12.  [ACQUISITION OF INSURANCE.] The managers may 
contract for or purchase insurance the managers find necessary 
for the protection of the watershed district.  [112.43 s. 1] 
    Subd. 13.  [CONSTRUCTION CONTRACTS.] The managers may enter 
into contracts of construction authorized by this chapter.  
[112.43 s. 1] 
    Subd. 14.  [ENTRY ON LANDS.] The managers may enter lands 
inside or outside the watershed district to make surveys and 
investigations to accomplish the purposes of the watershed 
district.  The watershed district is liable for actual damages 
resulting from entry.  [112.43 s. 1] 
    Subd. 15.  [TAKE OVER DRAINAGE SYSTEM.] The managers may 
take over when directed by a drainage authority all joint county 
or county drainage systems within the watershed district, 
together with the right to repair, maintain, and improve them.  
[112.43 s. 1] 
    Subd. 16.  [SANITATION AND POLLUTION PREVENTION.] The 
managers may provide for sanitation and public health and 
regulate the use of streams, ditches, or watercourses to dispose 
of waste and prevent pollution.  [112.43 s. 1] 
    Subd. 17.  [BORROWING FUNDS.] The managers may borrow funds 
from an agency of the federal government, a state agency, a 
county where the watershed district is located in whole or in 
part, or a financial institution authorized under chapter 47 to 
do business in this state.  A county board may lend the amount 
requested by a watershed district.  A watershed district may not 
have more than a total of $200,000 in loans from counties and 
financial institutions under this subdivision outstanding at any 
time.  [112.43 s. 1] 
    Subd. 18.  [FLOODPLAIN MAPS.] The managers may prepare a 
floodplain map of the lands of the watershed district that are 
in the floodplain of lakes and watercourses.  The map must be 
made available to the counties and local municipalities for 
inclusion in floodplain ordinances.  It must conform to rules of 
the commissioner setting standards for designation of floodplain 
areas.  [112.43 s. 1] 
    Subd. 19.  [OPEN SPACE AND GREENBELTS.] The managers may 
prepare an open space and greenbelt map of the lands of the 
watershed district that should be preserved and included in the 
open space and greenbelt land areas of the watershed district.  
The map must be made available to the counties and local 
municipalities for inclusion in floodplain and shoreland 
ordinances.  The managers may control the use and development of 
land in the floodplain and the greenbelt and open space areas of 
the watershed district.  The managers may adopt, amend, or 
repeal rules to control encroachments, the changing of land 
contours, the placement of fill and structures, and the 
placement of encumbrances or obstructions, and may require a 
landowner to remove fill, structures, encumbrances, or other 
obstructions and restore the previously existing land contours 
and vegetation.  The managers may by rule provide a procedure 
for the watershed district to do the work required and assess 
its cost against the affected property as a special assessment.  
The rules apply only in the absence of county or municipal 
ordinances regulating the items set forth in this subdivision.  
The rules must be adopted in accordance with section 26.  
[112.43 s. 1] 
    Subd. 20.  [STATE ASSOCIATION MEMBERSHIP.] The managers may 
appropriate necessary funds to provide for membership in a state 
association of watershed districts whose purpose is to improve 
watershed governmental operations.  [112.43 s. 1] 
    Subd. 21.  [CONTRACTS.] The managers may make contracts or 
other arrangements with the federal government, persons, 
railroads or other corporations, political subdivisions, and the 
state or other states, with drainage authorities, flood control, 
soil conservation, or other improvement districts in this state 
or other states, for cooperation or assistance in constructing, 
maintaining, and operating the projects of the watershed 
district, or for the control of its waters, or for making 
surveys and investigations or reports on them.  [112.67] 
    Subd. 22.  [PROJECTS IN OTHER STATES.] The managers may 
purchase, lease, or acquire land or other property in adjoining 
states to secure outlets, to construct and maintain dikes or 
dams or other structures for the purposes of this chapter.  
[112.67] 
    Subd. 23.  [METROPOLITAN WATERSHED DISTRICTS.] (a) A 
watershed district located wholly within the metropolitan area 
has the duties and powers in article 2, section 7.  
    (b) Notwithstanding any contrary provision of this section, 
a watershed district located entirely within the metropolitan 
area may regulate the use and development of land only under the 
conditions specified in article 2, section 7, subdivision 1.  
[112.43 s. 1b] 
    Sec. 26.  [103D.341] [RULES.] 
    Subdivision 1.  [REQUIREMENT.] The managers must adopt 
rules to accomplish the purposes of this chapter and to 
implement the powers of the managers.  [112.43 s. 1c] 
    Subd. 2.  [PROCEDURE.] (a) Rules of the watershed district 
must be adopted or amended by a majority vote of the managers, 
after public notice and hearing.  Rules must be signed by the 
secretary of the board of managers and recorded in the board of 
managers' official minute book. 
    (b) For each county affected by the watershed district, the 
managers must publish a notice of hearings and adopted rules in 
one or more legal newspapers published in the county and 
generally circulated in the watershed district.  The managers 
must file adopted rules with the county recorder of each county 
affected by the watershed district. 
    (c) The managers must mail a copy of the rules to the 
governing body of each municipality affected by the watershed 
district.  [112.43 s. 1c] 
    Subd. 3.  [NOTIFICATION FOR RULE THAT AFFECTS CITY.] A rule 
or resolution that affects land or water within the boundaries 
of a city is not effective within the city's boundaries until 
the governing body of the city is notified.  [112.43 s. 1a] 
    Sec. 27.  [103D.345] [PERMITS.] 
    Subdivision 1.  [APPLICATION FEE.] A person applying for a 
permit required by the managers under a rule controlling the use 
and development of land in the floodplain, greenbelt, and open 
space areas of the watershed district must accompany the 
application with a permit application fee to defray the cost of 
recording and processing the application.  The managers may set 
the fee not to exceed $10.  [112.88. s. 1] 
    Subd. 2.  [FIELD INSPECTION FEE.] The managers may charge, 
in addition, a field inspection fee of at least $35.  The 
inspection fee must be used to cover actual costs related to a 
field inspection.  Inspection costs include investigation of the 
area affected by the proposed activity, analysis of the proposed 
activity, services of a consultant, and any required subsequent 
monitoring of the proposed activity.  Costs of monitoring an 
activity authorized by permit may be charged and collected as 
necessary after issuance of the permit.  [112.88 s. 2] 
    Subd. 3.  [GOVERNMENT AGENCIES EXEMPT.] The fees in 
subdivisions 1 and 2 may not be charged to the federal 
government, the state, or a political subdivision.  [112.88 s. 
3] 
    Subd. 4.  [BOND.] The managers may require an applicant for 
a permit to file a bond with the managers in an amount set by 
the managers and conditioned on performance by the applicant of 
authorized activities in conformance with the terms of the 
permit.  [112.88 s. 4] 
    Sec. 28.  [103D.351] [ANNUAL REPORT.] 
    (a) The managers must prepare a yearly report of the 
financial conditions of the watershed district, the status of 
all projects, the business transacted by the watershed district, 
other matters affecting the interests of the watershed district, 
and a discussion of the managers' plans for the succeeding year. 
    (b) Copies of the report must be transmitted to the 
secretary of the board of water and soil resources, the 
commissioner, and the director within a reasonable time.  
[112.43 s. 3] 
    Sec. 29.  [103D.355] [ANNUAL AUDIT.] 
    Subdivision 1.  [REQUIREMENT.] The managers must have an 
annual audit completed of the books and accounts of the 
watershed district.  The annual audit may be made by a public 
accountant or by the state auditor.  [112.73] 
    Subd. 2.  [AUDIT BY STATE AUDITOR.] (a) If the annual audit 
is to be made by the state auditor, the audit must be initiated 
by a petition of the resident owners of the watershed district 
or resolution of the managers of the watershed district.  The 
petition must request an annual audit pursuant to the authority 
granted municipalities under sections 6.54 and 6.55. 
    (b) If the audit is made by the state auditor, the 
watershed district receiving the examination must pay the state 
the total cost and expenses of the examination, including the 
salaries paid to the examiners while actually engaged in making 
the examination.  The general fund must be credited with all 
collections made for examinations under this subdivision.  
[112.73] 
    Subd. 3.  [REPORTS FOR STATE AUDITOR.] The managers must 
make and submit reports demanded by the state auditor.  [112.73] 

                       WATERSHED MANAGEMENT PLAN 
    Sec. 30.  [103D.401] [WATERSHED MANAGEMENT PLAN.] 
    Subdivision 1.  [CONTENTS.] (a) The managers must adopt a 
watershed management plan for any or all of the purposes for 
which a watershed district may be established.  The watershed 
management plan must give a narrative description of existing 
water and water-related problems within the watershed district, 
possible solutions to the problems, and the general objectives 
of the watershed district. 
    (b) The watershed management plan may include a separate 
section on proposed projects.  If the watershed district is 
within the metropolitan area, the separate section of proposed 
projects or petitions for projects to be undertaken according to 
the watershed management plan is a comprehensive plan of the 
watershed district for purposes of review by the metropolitan 
council under section 473.165.  [112.46 s. 1] 
    Subd. 2.  [REVIEW.] The managers must send a copy of the 
proposed watershed management plan to the county auditor of each 
county affected by the watershed district, the secretary of the 
board, the commissioner, the director, the governing body of 
each municipality affected by the watershed district, and soil 
and water conservation districts affected by the watershed 
district.  For a watershed district within the metropolitan 
area, a copy of the proposed watershed management plan must also 
be submitted to the metropolitan council.  [112.46 s. 2] 
    Subd. 3.  [DIRECTOR'S AND METROPOLITAN COUNCIL'S 
RECOMMENDATIONS.] After receiving the watershed management plan, 
the director and the metropolitan council must review and make 
recommendations on the watershed management plan.  By 60 days 
after receiving the plan, the director and the metropolitan 
council must send their recommendations on the watershed 
management plan to the board and a copy to the managers of the 
watershed district, the county auditor of each county affected 
by the watershed district, the governing bodies of all 
municipalities affected by the watershed district, and soil and 
water conservation districts affected by the watershed 
district.  The board may extend the period for review and 
transmittal of the recommendations.  [112.46 s. 2] 
    Subd. 4.  [HEARING NOTICE.] (a) The board must give notice 
and hold a watershed management plan hearing on the proposed 
watershed management plan by 45 days after receiving the 
director's and metropolitan council's recommendations.  
    (b) The board must give notice of the watershed management 
plan hearing by publication in a legal newspaper that is 
published in counties affected by the watershed district.  The 
last publication must occur at least ten days before the 
watershed management plan hearing. 
    (c) The board must give notice of the watershed management 
plan hearing by mail to the auditors of counties and to the 
chief executive officials of municipalities affected by the 
watershed district.  
    (d) The notice must include: 
    (1) a statement that a copy of the proposed watershed 
management plan has been filed with the board, the metropolitan 
council, where applicable, the auditors of counties affected by 
the proposed watershed district, the commissioner, the director, 
the governing body of each municipality affected by the 
watershed district, and the soil and water conservation 
districts affected by the watershed district; 
    (2) a general description of the purpose of the watershed 
district; 
    (3) a general description of the property included in the 
watershed district; 
    (4) a general description of the proposed watershed 
management plan; 
    (5) the date, time, and location of the hearing; and 
    (6) a statement that all persons affected or interested in 
the watershed district may attend and give statements at the 
watershed management plan hearing.  [112.38; 112.46 s. 2] 
    Subd. 5.  [BOARD APPROVAL.] After the watershed management 
plan hearing, the board must, by order, prescribe and approve a 
watershed management plan for the watershed district.  The board 
must send a copy of the order and approved watershed management 
plan to the managers, the county board of each county affected 
by the watershed district, the commissioner, the director, the 
metropolitan council, where applicable, the governing body of 
each municipality affected by the watershed district, and soil 
and water conservation districts affected by the watershed 
district.  The watershed management plan approved by the board 
is the watershed management plan for the watershed district.  
[112.46 s. 2] 
    Sec. 31.  [103D.405] [REVISED WATERSHED MANAGEMENT PLAN.] 
    Subdivision 1.  [REQUIREMENTS.] (a) The managers and the 
board must revise the watershed management plan for the 
watershed district at least once every ten years after the 
original watershed management plan is approved. 
    (b) The managers must consider inclusion of at least the 
following items in the revised watershed management plan: 
    (1) updates and supplements of the existing hydrological 
and other statistical data of the watershed district; 
    (2) specific projects to be completed; 
    (3) a statement of the extent that the purposes for which 
the watershed district had been established have been 
accomplished; 
    (4) a description of problems requiring future action by 
the watershed district; 
    (5) a summary of completed studies on active or planned 
projects, including financial data; and 
    (6) an analysis of the effectiveness of the watershed 
district's rules and permits in achieving its water management 
objectives in the watershed district.  
    (c) A revised watershed management plan must be 
transmitted, reviewed, recommended, and approved as provided in 
subdivisions 2 to 4 and 6.  [112.46 s. 3, 4, 5] 
    Subd. 2.  [REQUIRED TEN-YEAR REVISION.] (a) After ten years 
and six months from the date that the board approved a watershed 
management plan or the last revised watershed management plan, 
the managers must consider the requirements under subdivision 1 
and adopt a revised watershed management plan outline and send a 
copy of the outline to the board.  
    (b) By 60 days after receiving a revised watershed 
management plan outline, the board must review it, adopt 
recommendations regarding the revised watershed management plan 
outline, and send the recommendations to the managers.  
    (c) By 120 days after receiving the board's recommendations 
regarding the revised watershed management plan outline, the 
managers must complete the revised watershed management plan.  
[112.46 s. 4, 5] 
    Subd. 3.  [REVIEW.] The managers must send a copy of the 
revised watershed management plan to the board, the county board 
and county auditor of each county affected by the watershed 
district, the director, the governing body of each municipality 
affected by the watershed district, soil and water conservation 
districts affected by the watershed district, and the 
metropolitan council, if the watershed district is within the 
metropolitan area.  [112.46 s. 5] 
    Subd. 4.  [DIRECTOR'S AND METROPOLITAN COUNCIL'S 
RECOMMENDATIONS.] The director and the metropolitan council, if 
applicable, must review and make recommendations on the revised 
watershed management plan.  By 60 days after receiving the 
revised watershed management plan unless the time is extended by 
the board, the director and the council must send the 
recommendations on the revised watershed management plan to the 
board, and a copy of the recommendations to the managers, the 
county auditor of each county affected by the watershed 
district, the governing body of each municipality affected by 
the watershed district, and soil and water conservation 
districts affected by the watershed district.  [112.46 s. 5] 
    Subd. 5.  [NOTICE.] (a) The board must give notice and hold 
a revised watershed management plan hearing on the proposed 
revised watershed management plan by 45 days after receiving the 
director's and metropolitan council's recommendation.  
    (b) The board must give notice of the revised watershed 
management plan hearing by publication in a legal newspaper 
published in counties affected by the watershed district.  The 
last publication must occur at least ten days before the revised 
watershed management plan hearing. 
    (c) The board must give notice of the revised watershed 
management plan hearing by mail to the auditors of counties and 
to the chief executive officials of municipalities affected by 
the watershed district.  
    (d) The notice must include: 
    (1) a statement that a copy of the proposed revised 
watershed management plan has been filed with the board, the 
metropolitan council, where applicable, the auditors of counties 
affected by the proposed watershed district, the commissioner, 
the director, the governing body of each municipality affected 
by the watershed district, and the soil and water conservation 
districts affected by the watershed district; 
    (2) a general description of the purpose of the watershed 
district; 
    (3) a general description of the property included in the 
watershed district; 
    (4) a general description of the proposed revised watershed 
management plan; 
    (5) the date, time, and location of the hearing; and 
    (6) a statement that all persons affected or interested in 
the watershed district may attend and give statements at the 
revised watershed management plan hearing.  [112.38; 112.46 s. 
2, 5] 
    Subd. 6.  [BOARD ORDER.] After the revised watershed 
management plan hearing, the board must prescribe a revised 
watershed management plan for the watershed district.  The board 
must send a copy of the order and approved revised watershed 
management plan to the managers, the county board of each county 
affected by the watershed district, the commissioner, the 
director, the metropolitan council, where applicable, and soil 
and water conservation districts affected by the watershed 
district.  The revised watershed management plan approved by the 
board is the revised watershed management plan for the watershed 
district.  [112.46 s. 2, 5] 
    Sec. 32.  [103D.411] [AMENDMENT OF WATERSHED MANAGEMENT 
PLAN AND REVISED WATERSHED MANAGEMENT PLAN.] 
    The managers may initiate an amendment of a watershed 
management plan or revised watershed management plan by 
submitting a petition with the proposed amendment to the board.  
The board must give notice and hold a hearing on the amendment 
in the same manner as for the watershed management plan.  After 
the hearing, the board may, by order, approve or prescribe 
changes in the amendment.  The amendment becomes part of the 
watershed management plan after approval by the board.  The 
board must send the order and approved amendment to the entities 
that receive an approved watershed management plan under section 
30, subdivision 5.  [112.46 s. 2] 

                           GENERAL PROVISIONS 
    Sec. 33.  [103D.501] [CONSTRUCTION AND ADMINISTRATION.] 
    This chapter shall be construed and administered so as to 
make effective the purposes of section 6, subdivision 1.  
[112.34 s. 1] 
    Sec. 34.  [103D.505] [REFERENCE TO OTHER DRAINAGE LAWS.] 
    If this chapter refers to particular sections of the 
drainage laws of this state, the sections and provisions shall, 
if consistent with this chapter, be treated and construed as 
having the same effect, so far as the provisions of this chapter 
are concerned, as though set forth in this chapter.  Amendments 
of those laws passed after the effective date of this chapter 
are applicable to this chapter.  [112.72] 
    Sec. 35.  [103D.511] [CERTAIN CONDEMNATION PROVISIONS DO 
NOT APPLY.] 
    Section 117.155 relating to payment of damages in a 
condemnation proceeding does not apply to a project financed by 
special assessment.  [112.87] 
    Sec. 36.  [103D.515] [PREEXISTING AND IMPROVED WATER 
RIGHTS.] 
    Subdivision 1.  [PREEXISTING WATER RIGHTS RECOGNIZED.] The 
rights of private or corporate landowners to use the waters of 
the watershed district for any purpose continue as the rights 
existed at the time of the organization of the watershed 
district.  [112.71] 
    Subd. 2.  [WATERSHED DISTRICT POSSESSES IMPROVED 
RIGHTS.] All preexisting rights must be recognized by the 
managers, but if projects constructed by the watershed district 
make possible a greater, better, or more convenient use of or 
benefit from the waters of the watershed district for any 
purpose, the right to the greater use or benefit is the property 
of the watershed district.  [112.71] 
    Subd. 3.  [COMPENSATION FOR IMPROVED RIGHTS.] The watershed 
district may lease or assign the rights in return for reasonable 
compensation, as provided in this section.  [112.71] 
    Subd. 4.  [APPROVAL OF RIGHTS TRANSFER.] Leases, 
assignments, permits, or contracts for the use of water shall be 
entered into only after the managers have reported to the board 
the terms and conditions of the lease, permit, or contract 
relative to the use of any watershed district property.  The 
secretary of the board shall give notice of the contract to all 
parties interested, by mail, and shall have notice of the 
application published.  The notice must state the purpose of the 
application and the time and place of hearing on it.  At the 
time of hearing the board shall hear all interested persons for 
or against the proposed contract and make an order accordingly 
on conditions and restrictions necessary to protect the interest 
of the watershed district and of the public.  [112.71] 
    Sec. 37.  [103D.521] [RIGHTS ASSURED DUE PROCESS OF LAW.] 
    A person may not be deprived or divested under this chapter 
of a previously established beneficial use or right without due 
process of law.  [112.84] 
    Sec. 38.  [103D.525] [PROCEEDINGS AFTER FAULTY NOTICES ARE 
GIVEN.] 
    Subdivision 1.  [JURISDICTION RETAINED.] If a notice is 
required for a hearing or proceeding before the board, managers, 
or district court, and the board, managers, or court find that 
proper notice was not given, the board, managers, or court do 
not lose jurisdiction and the proceedings are not invalid.  
[112.78] 
    Subd. 2.  [PROPER NOTICE TO BE GIVEN.] If the notice was 
defective, the board, managers, or court shall order proper 
notice to be given.  The board, managers, or court shall 
continue the hearing until notice is properly given and then 
proceed as though notice had been properly given in the first 
instance.  [112.78] 
    Subd. 3.  [DEFECTIVE PUBLISHED NOTICE.] If the original 
notice was faulty only with reference to publication as to 
certain tracts, only the persons interested in those particular 
tracts need be notified by a later notice.  If the publication 
of a notice in a county was defective or not made in time, 
notice need be given only within the county where notice was 
defective.  [112.78] 
    Sec. 39.  [103D.531] [CONTINUANCE OF HEARINGS.] 
    If an order has been made and notice given for a hearing in 
a proceeding under this chapter, and the board, managers, or 
court fail to appear at the time and place specified, the 
secretary of the board or the managers, or the court 
administrator of the district court shall continue the hearing 
to another date as necessary and notify the board, managers, or 
the court of the continuance and the date of hearing.  The 
matter shall be continued to that date without affecting the 
jurisdiction of the board, the managers, or the court.  [112.79] 
    Sec. 40.  [103D.535] [APPELLATE PROCEDURES AND REVIEW.] 
    Subdivision 1.  [WHAT CAN BE APPEALED.] Any party alone or 
jointly may appeal to the district court or to the board an 
order of the managers made in a proceeding and entered in the 
watershed district's record that determines: 
    (1) the amount of benefits determined; 
    (2) the amount of damages allowed; 
    (3) the allowance of fees or expenses in any proceedings; 
    (4) a matter that affects a substantial right; or 
    (5) an order of the managers authorizing or refusing to 
establish a project in whole or in part.  [112.801 s. 1] 
    Subd. 2.  [AMOUNTS AWARDED ON APPEAL ARE SUBSTITUTED.] On 
appeal, the amount awarded by the jury or the board as finally 
determined shall stand for and in the place of the amount from 
which the appeal was taken.  [112.801 s. 2] 
    Subd. 3.  [APPEALS FROM MANAGERS' ORDERS.] (a) If an appeal 
is taken from an order authorizing a project, a trial of an 
appeal of benefits or damages from the proceedings must be 
stayed until the appeal is decided.  If the order authorizing 
the project is affirmed, a trial of an appeal of benefits or 
damages may commence. 
    (b) If the appeal is from an order refusing to authorize a 
project and the court or the board later orders the project, the 
secretary of the watershed district shall give notice by 
publication of the filing of the order.  The notice is 
sufficient if it refers to the proposed project by general 
description and recites the substance of the order and the date 
of filing in the court.  [112.801 s. 3] 
    Subd. 4.  [APPEALS CAN INVOLVE PROPERTY OTHER THAN 
APPELLANT'S OWN.] (a) A person or political subdivision 
appealing the amount of benefits or damages may include and have 
considered and determined benefits or damages affecting property 
other than that person's or political subdivision's own property.
    (b) Notice of the appeal must be served on:  
    (1) the owner or occupant of the property not owned by the 
appellant or on the attorney who represented the other owner in 
the proceedings; 
    (2) the auditor of the county where the property is 
located; and 
    (3) on the court administrator of the district court of the 
county where the principal place of business of the watershed 
district is located, or on the secretary of the board.  [112.801 
s. 4] 
    Subd. 5.  [NOTICE OF APPEAL.] (a) Before the appeal is 
heard by the court or board, the appellant must file a notice of 
appeal with the court administrator of the district court or the 
secretary of the board.  The appeal must:  
    (1) be filed within 30 days of the date of the final order; 
    (2) state the grounds upon which the appeal is taken; and 
    (3) be accompanied by an appeal bond of at least $250 to 
the watershed district where the property is located.  
    (b) The bond must be approved by the court administrator of 
the district court or the secretary of the board where the 
appeal is filed.  The bond must be conditioned that the 
appellant will: 
    (1) make the appeal; 
    (2) pay all costs and disbursements that may be adjudged 
against the appellant; and 
    (3) comply with the order of the court or of the board 
where the appeal is filed.  [112.801 s. 5] 
    Subd. 6.  [TIME AND PLACE OF TRIAL.] (a) The appeal must be 
tried by a jury, or by the board at a time and place set by the 
court or board.  If the appeal is tried by a jury, the appeal 
must be tried and determined at the next term of the district 
court held within the county where the notice of appeal was 
filed, or in other counties where the appeal is heard, beginning 
after the filing of the appeal.  
    (b) An appeal takes precedence over all other civil matters.
    (c) If there is more than one appeal to the board involving 
the same project, or if there is more than one appeal triable in 
one county, the court or the board may consolidate the appeals 
and try them together, but the rights of the appellants must be 
determined separately.  Consolidation of the appeals may be made 
on the court's or board's own motion or on the motion of a party 
in interest.  [112.801 s. 6] 
    Subd. 7.  [BENEFITS OUTSIDE COUNTY OF DISTRICT'S 
OFFICE.] If there is an appeal relating to damages or benefits 
to property in a county other than the county where the 
principal place of business of the watershed district is 
located, on request of the appellant, the trial must be held at 
the next term of the district court of the county where the 
benefited or damaged property is located.  The court 
administrator of the district court where the appeal is filed 
shall make a transcript of the papers and documents on file in 
the court administrator's office in the proceeding as they 
pertain to the matter for which the appeal is taken.  The court 
administrator shall certify the transcript and file it in the 
office of the court administrator of the district court in the 
county where the appeal will be tried.  After the final 
determination of the appeal, the court administrator of the 
district court where the action is tried shall certify and 
return the verdict to the district court of the county where the 
proceedings were initiated.  [112.801 s. 6] 
    Subd. 8.  [APPEAL TO BOARD.] If the appeal is to the board, 
the board shall file its decision with the board's secretary.  
If the appeal is taken to the board from the order of the 
managers, the decision of the board may be reviewed by 
certiorari proceedings in the district court of a county where 
the proposed project lies in whole or in part.  [112.801 s. 6] 
    Subd. 9.  [COURT REFERRAL OF QUESTIONS TO BOARD.] If an 
appeal is from the order of the managers and made to the 
district court, and the court determines that there are involved 
facts, circumstances, or matters especially within the 
knowledge, functions, or duties of the board, the court may 
refer to the board as referee questions of fact within the scope 
of the board's knowledge, functions, and duties.  The board 
shall make its findings of fact upon the questions and report 
them back to the court.  [112.801 s. 6] 
    Subd. 10.  [TRIAL RECORD.] The board shall make a record of 
all matters tried by the board on appeal or referred to it by 
the district court for findings of fact under this section.  The 
record must meet the requirements of a record of the trial of a 
matter in district court.  [112.801 s. 7] 
    Subd. 11.  [BOARD MUST FOLLOW ADMINISTRATIVE 
PROCEDURE.] Proceedings before the board must conform to 
sections 14.57 to 14.62.  [112.801 s. 8] 
    Sec. 41.  [103D.541] [APPEAL OF COURT ORDER.] 
    Subdivision 1.  [APPEAL AUTHORIZED.] A party may appeal a 
court order as in other civil cases if aggrieved by a final 
order or judgment given on appeal to the district court, or by 
the original order of the court made in proceedings heard and 
tried before the court.  [112.82 s. 1] 
    Subd. 2.  [APPEAL OF PROCEEDING BEFORE MANAGERS.] In a 
proceeding before the managers for the repair, improvement, 
maintenance, consolidation, or abandonment of a project of the 
watershed district, the right of appeal is the same as in other 
civil cases.  [112.82 s. 2] 
    Sec. 42.  [103D.545] [ENFORCEMENT.] 
    Subdivision 1.  [MISDEMEANOR.] A violation of a provision 
of this chapter, a rule, order, or stipulation agreement made or 
a permit issued by the managers under this chapter is a 
misdemeanor.  [112.89 s. 1] 
    Subd. 2.  [METHODS OF ENFORCEMENT.] A provision of this 
chapter, a rule, order, or stipulation agreement made or a 
permit issued by the managers under this chapter may be enforced 
by criminal prosecution, injunction, action to compel 
performance, restoration, abatement, and other appropriate 
action.  [112.89 s. 2] 
    Sec. 43.  [103D.551] [ENFORCEMENT OF RULES AND ORDERS.] 
    The district court may enforce the provisions of this 
chapter, and a rule adopted or order issued by the managers 
under this chapter by injunction or other appropriate order.  
[112.43 s. 2] 

           PROCEDURE FOR MANAGERS' ESTABLISHMENT OF PROJECTS 
    Sec. 44.  [103D.601] [ESTABLISHMENT OF PROJECT BY MAJORITY 
OF MANAGERS.] 
    Subdivision 1.  [REQUIREMENTS.] (a) The managers may 
initiate a project by resolution of at least a majority of the 
managers if: 
    (1) the project is financed by grants totaling at least 50 
percent of the estimated project cost; and 
    (2) the engineer's estimate of costs to parties affected by 
the watershed district, including assessments against benefited 
properties but excluding state, federal, or other grants, is not 
more than $750,000 for the project.  
    (b) A resolution under this subdivision may not be used to 
establish a project that has drainage as its essential nature 
and purpose.  [112.48 s. 4] 
    Subd. 2.  [PRELIMINARY RESOLUTION HEARING NOTICE.] (a) The 
managers must set the time and location for a preliminary 
resolution hearing on the proposed resolution for the project.  
    (b) The managers must give notice of the preliminary 
resolution hearing by publication in a legal newspaper published 
in the counties affected by the watershed district.  The last 
publication must occur at least ten days before the preliminary 
resolution hearing.  
    (c) The preliminary resolution hearing notice must contain: 
    (1) the date, time, and place of hearing; 
    (2) the substance of the proposed project resolution; 
    (3) the means of financing the project; and 
    (4) a statement that all persons who might be affected by 
the proposed project or who may be interested in the proposed 
project may appear and be heard.  
    (d) Defects in the notice do not invalidate the proceedings.
[112.48 s. 4] 
    Subd. 3.  [PRELIMINARY REPORT AND INFORMATION.] (a) The 
managers must have the watershed district engineer or another 
competent person prepare a preliminary report advising the 
managers whether the proposed project is feasible and estimating 
the cost of the project.  An error or omission in the 
preliminary report does not invalidate the proceeding.  
    (b) The managers may have other helpful information 
prepared that will aid in determining the desirability and 
feasibility of the project.  [112.48 s. 4] 
    Subd. 4.  [UNFAVORABLE PRELIMINARY REPORT.] If the 
preliminary report is unfavorable, the managers must set a time 
and location for a hearing in the manner provided for the 
preliminary resolution.  After the hearing, the project may be 
referred back to the watershed district engineer or another 
competent person for further study and report, or the managers 
may dismiss the proceeding.  [112.48 s. 4] 
    Subd. 5.  [FINAL RESOLUTION.] If, after the hearing, the 
managers determine that the proposed project promotes the public 
interest and welfare and is practicable and in conformity with 
the watershed management plan of the watershed district, the 
managers must adopt a final resolution approving the project and 
identify the proceeding by name and number.  [112.48 s. 4] 
    Subd. 6.  [FURTHER PROCEDURE.] (a) When a final resolution 
is adopted, the proceeding must continue as provided for a 
project initiated by a petition.  
    (b) After the managers file a statement listing the 
property benefited, damaged, or otherwise affected by a project 
with the auditors of counties affected by the project, the 
proceedings for the project must continue under section 68.  
[112.48 s. 4] 

             PROCEDURE FOR BASIC WATER MANAGEMENT PROJECTS 

                        AND GOVERNMENT PROJECTS 
    Sec. 45.  [103D.605] [PROJECT CONSTRUCTED WITH GOVERNMENT 
AID OR AS PART OF PLAN.] 
    Subdivision 1.  [PROCEDURE REQUIREMENT.] The procedure in 
this section must be followed if:  
     (1) a project is to be constructed within the watershed 
district under an agreement between the managers and the state 
or federal government and the cost of the project is to be paid 
for in whole or in part by the state or federal government, but 
the rights-of-way and the cost of the project are assumed by the 
watershed district; or 
    (2) the managers are undertaking all or a portion of the 
basic water management project as identified in the watershed 
management plan.  [112.48 s. 3] 
    Subd. 2.  [BOARD'S AND DIRECTOR'S REPORTS.] A copy of the 
project plan must be transmitted to the board and the director.  
The board and the director must review the project plan and 
prepare reports on the project.  The reports must be transmitted 
to the managers.  [112.48 s. 3] 
    Subd. 3.  [PROJECT HEARING NOTICE.] (a) After receiving the 
board's and the director's reports, the managers must set a time 
and location for a hearing on the proposed project.  
    (b) The project hearing notice must state: 
    (1) the time and location of the project hearing; 
    (2) the general nature of the proposed project; 
    (3) the estimated cost of the proposed project; and 
    (4) the method by which the cost of the proposed project is 
to be paid, including the cost to be allocated to each affected 
municipality or the state government.  
    (c) The managers must give notice by publication before the 
date of the hearing in a legal newspaper, published in the 
counties where property is to be improved by the proposed 
project.  The last publication must occur between 30 days and 
ten days before the project hearing.  
    (d) At least ten days before the project hearing, notice by 
mail must be given to the director and the municipalities 
entirely or partly within the project area.  
    (e) Failure to give mailed notice or defects in the notice 
do not invalidate the proceedings.  [112.48 s. 3] 
    Subd. 4.  [PROJECT HEARING.] At the project hearing, the 
managers must hear all parties interested in the proposed 
project.  [112.48 s. 3] 
    Subd. 5.  [PROJECT ESTABLISHMENT.] After the project 
hearing, if the managers find that the project will be conducive 
to public health, promote the general welfare, and is in 
compliance with the watershed management plan and the provisions 
of this chapter, the board must, by order, establish the 
project.  The establishment order must include the findings of 
the managers.  [112.48 s. 3] 
    Sec. 46.  [103D.611] [CONSTRUCTION BY GOVERNMENT AGENCIES.] 
    Subdivision 1.  [PROJECT PLAN TO DIRECTOR AND BOARD.] If a 
project is to be constructed within the watershed district under 
a contract between the watershed district and the state or the 
federal government, and the cost of construction is to be paid 
by the governmental agency but the rights-of-way, legal, and 
general expenses of the improvement are to be paid by the 
watershed district, the managers shall forward a copy of the 
project plan to the board and the director.  The director shall 
prepare a director's advisory report and the board shall prepare 
a board's advisory report.  [112.69 s. 1] 
    Subd. 2.  [HEARING NOTICE.] (a) The managers shall hold a 
public hearing on the proposed contract following publication of 
the hearing notice.  
     (b) The hearing notice must be published once each week for 
two successive weeks before the date of the hearing in a legal 
newspaper published in the counties where a part or all of the 
affected waters and lands are located.  The last publication 
must occur at least ten days before the hearing.  The notice 
must state the time and place of hearing, the general nature of 
the proposed improvement, its estimated cost, and the area 
proposed to be assessed.  
     (c) At least ten days before the hearing, notice must be 
mailed to each resident owner, as shown on the county auditor's 
most recent records maintained for taxation purposes, within the 
area proposed to be assessed, and to the director, and to each 
public body within the area to be assessed and likely to be 
affected.  Failure to give mailed notice or defects in the 
notice do not invalidate the proceedings.  [112.69 s. 1] 
    Subd. 3.  [HEARING.] At the time and place specified in the 
notice the managers shall hear all interested parties for and 
against the proposed project.  All questions relative to the 
project must be determined on evidence presented at the 
hearing.  If the managers find that the project will be 
conducive to public health and will promote the general welfare, 
and that it complies with this chapter, the managers shall make 
findings accordingly, authorize the project, and make the 
proposed contract or other arrangement.  [112.69 s. 1] 
    Subd. 4.  [APPRAISAL.] (a) After authorizing the project, 
the managers shall appoint three disinterested resident owners 
of the state to act as appraisers.  
    (b) After the appraisers sign an oath to faithfully and 
impartially perform their duties, they shall, with or without 
the engineer, determine the benefits and damages to property 
affected by the proposed project.  The appraisers shall make a 
detailed statement and file the statement with the managers 
showing:  
    (1) the actual damages that have resulted or will result to 
individuals, property, or corporations from the construction of 
the project; and 
    (2) a list of property, including highways and 
corporations, receiving actual benefits by way of drainage, 
control of flood waters, or other means authorized in this 
chapter.  [112.69 s. 1] 
    Subd. 5.  [HEARING ON APPRAISERS' REPORT.] (a) After the 
appraisers' report and the plans and engineering data prepared 
by the governmental agency are filed with the managers, the 
managers shall prepare a detailed statement of all costs, 
including damages, to be incurred by the watershed district in 
construction of the project.  
    (b) The managers shall order a time and place within the 
watershed district for a hearing on the appraisers' report by 35 
days after the detailed statement of costs is prepared.  The 
managers shall give notice by publication and mailing as 
provided in subdivision 1 for a hearing on a petition.  At the 
time and place specified in the notice, the managers shall hear 
all parties interested for and against confirming the 
appraisers' report.  
    (c) The managers may order and direct the modification of 
the assessment of benefits and damages, and amend or change the 
list of properties reported as benefited or damaged.  If the 
amended reports include property not included in the original 
report, the managers shall adjourn and publish and mail in the 
manner for the original notice, the proper notice concerning the 
property not included in the previous notice.  
    (d) If upon full hearing the managers find that the 
benefits resulting from the construction will be greater than 
the assessments including damages they shall confirm the 
appraisers' report.  
    (e) Persons or political subdivisions affected by the order 
may appeal the order under this chapter.  [112.69 s. 2] 
    Subd. 6.  [ASSESSMENTS AND LEVIES.] Proceedings for 
assessments and levies may be brought under section 68 after the 
managers file a statement with the auditor of a county that 
lists the property and corporations benefited or damaged or 
otherwise affected by a project as found by the appraisers and 
approved by the managers.  [112.69 s. 2] 
    Subd. 7.  [NORMAL PROJECT INITIATION DOES NOT 
APPLY.] Section 53 relating to project initiation does not apply 
to projects of the watershed district constructed under contract 
as provided in this section.  [112.69 s. 2] 
    Subd. 8.  [ACQUISITION OF PROPERTY.] (a) If the watershed 
district is required to acquire an interest in real property 
under this section or convey an interest in real property to the 
federal government, the managers shall, before the filing of the 
appraisers' report, record a notice of the pendency of a 
proceeding initiated by the managers to acquire the lands to be 
conveyed to the federal government.  The notice of pendency must 
be recorded in the office of the county recorder of the affected 
county.  The notice must state the purpose for which the lands 
are to be taken.  
    (b) By 20 days before the hearing on the appraisers' 
report, in addition to the notice required by subdivision 2, the 
notice of the hearing must be served on the owners of the 
property to be acquired, in the same manner as the summons in a 
civil action.  The notice must:  
    (1) describe the property; 
    (2) state by whom and for what purpose the property is to 
be taken; 
    (3) give the names of all persons appearing of record or 
known to the managers to be the owners; 
    (4) state that appraisers have been appointed as provided 
by subdivision 4, to determine the benefits and damages; and 
    (5) state that a hearing will be held by the managers on 
the appraisers' report at the time and place specified in the 
notice. 
    (c) After the managers have confirmed the appraisers' 
report listing the property to be benefited or damaged as 
provided in subdivision 5, the managers have all rights of 
possession and entry conferred in other cases of condemnation by 
chapter 117.  
    (d) After confirmation of the appraisers' report, the 
attorney for the managers shall make a certificate describing 
the property taken and the purpose for the taking, and reciting 
the fact of payment of all awards determined by the appraisers 
appointed by the managers or judgments in relation to the land.  
When approved by the managers, the certificate establishes the 
right of the watershed district in the property taken.  The 
certificate must be filed for record with the county recorder of 
the county where the property is located.  The filing 
constitutes notice to all parties of the title of the watershed 
district to the property described in the certificate.  
    (e) After the certificate is filed, the managers may convey 
the property and interests in the property acquired to the 
federal government, if necessary.  [112.69 s. 3] 

                           EMERGENCY PROJECTS 
    Sec. 47.  [103D.615] [EMERGENCY PROJECTS.] 
    Subdivision 1.  [DECLARATION OF EMERGENCY.] If the managers 
find that conditions exist that present a clear and imminent 
danger to the health or welfare of the people of the watershed 
district, and that to delay action would prejudice the interests 
of the people of the watershed district or would be likely to 
cause irreparable harm, the managers may declare the existence 
of an emergency and designate the location, nature, and extent 
of the emergency.  [112.58] 
    Subd. 2.  [PROJECT ORDER.] If an emergency has been 
declared to the extent necessary to protect the interests of the 
watershed district, the managers may order that work be done 
under the direction of the managers and the engineer, without a 
contract.  [112.58] 
    Subd. 3.  [ASSESSMENT.] The cost of work undertaken without 
a contract may be assessed against benefited properties or, if 
the cost is not more than 25 percent of the most recent 
administrative ad valorem levy of the watershed district and the 
work is found to be of common benefit to the watershed district, 
funding may be raised by an ad valorem tax levy upon all taxable 
property within the watershed district, or both.  [112.58] 

                     DRAINAGE SYSTEMS AND PROJECTS 
    Sec. 48.  [103D.621] [DRAINAGE IMPROVEMENTS.] 
    Subdivision 1.  [FINDINGS.] The legislature finds that 
because of urban growth and development in the metropolitan area 
problems arise for the improvement and repair of drainage 
systems which were originally established for the benefit of 
land used for agriculture.  The procedure for improvement and 
repair of drainage systems now in the metropolitan area should 
be simplified to more adequately and economically improve and 
repair drainage systems.  [112.431 s. 1] 
    Subd. 2.  [DEFINITIONS.] (a) The terms in this section have 
the meanings given them in this subdivision.  
    (b) "Drainage system" has the meaning given in article 5, 
section 1, subdivision 12.  
    (c) "Watershed district" means any watershed district 
established under this chapter, 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.  [112.431 s. 2] 
    Subd. 3.  [DRAINAGE IMPROVEMENTS.] With the concurrence of 
the governing bodies of the cities and the town boards of the 
towns where the drainage system is located, the managers of a 
watershed district where there is a drainage system may improve 
and repair any drainage system transferred to the watershed 
district under section 49 by conforming to sections 429.031; 
429.041, subdivisions 1 and 2; 429.051; 429.061; and 429.071.  
[112.431 s. 3] 
    Subd. 4.  [ALTERNATIVE POWER.] With the concurrence of the 
governing bodies of the cities and the town boards of the towns 
where the drainage system is located, the managers may improve 
and repair a drainage system under the power granted to them in 
this chapter.  [112.431 s. 4] 
    Subd. 5.  [APPEAL.] A person aggrieved by an order for 
improvement or repair by the managers or by an assessment may 
appeal as provided in sections 40 and 41.  [112.431 s. 5] 
    Sec. 49.  [103D.625] [DRAINAGE SYSTEMS WITHIN WATERSHED 
DISTRICT.] 
    Subdivision 1.  [WATERSHED DISTRICT ASSUMPTION OF DRAINAGE 
SYSTEM.] (a) The managers shall take over a joint county or 
county drainage system within the watershed district and the 
right to repair and maintain the drainage system if directed by 
a joint county drainage authority or a county board.  The 
transfer may be initiated by:  
    (1) the joint county drainage authority or county board; 
    (2) a petition from a person interested in the drainage 
system; or 
    (3) the managers.  
    (b) The transfer may not be made until the joint county 
drainage authority or county board has held a hearing on the 
transfer.  Notice of the proposed transfer with the time and 
place of hearing must be given by two weeks' published notice in 
a legal newspaper of general circulation in the area where the 
transfer is to occur.  All interested persons may appear and be 
heard.  
    (c) After the hearing, the joint county drainage authority 
or county board shall order the watershed district to take over 
the joint county or county drainage system, unless it appears 
that the takeover would not serve the purpose of this chapter 
and would not be for the public welfare or be in the public 
interest.  [112.65 s. 1] 
    Subd. 2.  [DRAINAGE SYSTEMS ARE WORKS OF WATERSHED 
DISTRICT.] A joint county or county drainage system that is 
taken over in whole or in part is part of the works of the 
watershed district to the extent taken over.  [112.43 s. 1] 
    Subd. 3.  [PROCEDURE FOR REPAIR OR IMPROVEMENT.] After the 
transfer is ordered, all proceedings for repair and maintenance 
must conform to chapter 103E.  [112.65 s. 1] 
    Subd. 4.  [CONSTRUCTION OR IMPROVEMENT.] Construction of 
new drainage systems or improvements of existing drainage 
systems in the watershed district must be initiated by filing a 
petition with the managers.  The proceedings for the 
construction or improvement of drainage systems in the watershed 
district must conform to chapter 103E.  [112.65 s. 2] 

                    PROJECT REPAIRS AND IMPROVEMENTS 
    Sec. 50.  [103D.631] [MAINTENANCE OF PROJECTS.] 
    Subdivision 1.  [MAINTENANCE REQUIRED.] The managers are 
responsible for maintaining the projects of the watershed 
district in a condition so that they will accomplish the 
purposes for which they were constructed.  [112.64 s. 1] 
     Subd. 2.  [MAINTENANCE FUND.] (a) The cost of normal or 
routine maintenance of the projects of the watershed district, 
and the cost of removing obstructions and accumulations of 
foreign substances from a drainage system, shall be paid from 
the maintenance fund on the order of the managers.  [112.64 s. 
1] 
    (b) The managers may assess all the parcels of property and 
municipal corporations previously assessed for benefits in 
proceedings for the construction of the project, to establish a 
maintenance fund for the project.  The assessment must be made 
pro rata according to benefits determined.  An assessment for 
the benefit of the maintenance fund may not be made when the 
fund exceeds 20 percent of the original cost of construction of 
the project.  The auditors of the affected counties shall file a 
tabular lien statement covering the assessment in the office of 
the county recorder for the county when the assessment order 
from the managers is received.  
    (c) The assessment shall be collected as provided in the 
order in the same manner as provided in article 5, section 97.  
    (d) Before ordering the levy of an assessment for the 
benefit of the maintenance fund, the managers may give notice of 
a hearing on making the assessment and establishing the 
maintenance fund.  [112.64 s. 2] 
    Sec. 51.  [103D.635] [REPAIRS AND IMPROVEMENTS EXCEEDING 
NORMAL MAINTENANCE.] 
    Subdivision 1.  [TECHNICAL AND COST SPECIFICATIONS.] The 
managers shall order the engineer to prepare and submit to the 
managers technical and cost specifications on the work necessary 
to restore or improve the project to the desired level of 
operating efficiency before ordering repairs other than normal 
and routine maintenance if the engineer certifies to the 
managers, in the annual report or otherwise, that: 
    (1) a project of the watershed district is in such a state 
of disrepair that the project cannot be restored by normal and 
routine maintenance to the same condition as when it was 
originally constructed or subsequently improved; 
    (2) a ditch or channel must be widened or deepened; or 
    (3) a project of the watershed district must be altered or 
improved to attain the level of operating efficiency 
contemplated at the time of the original construction.  [112.64 
s. 3] 
    Subd. 2.  [HEARING.] The managers shall set a date for a 
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 after receiving the engineer's report.  [112.64 s. 
3] 
    Subd. 3.  [ASSESSMENT.] (a) The managers may order the 
repair or improvement and assess the cost against the benefited 
properties if, after a hearing, the managers find that the 
repair or improvement is in compliance with the plan, is 
necessary to accomplish the purposes of this chapter, and that 
the cost of the repair or improvement will not exceed its 
benefits.  The cost of the repair or improvement shall be 
apportioned and assessed pro rata upon all property that was 
assessed for the construction of the project.  
    (b) A single levy for the repair or improvement may not 
exceed the amount of benefits originally determined.  The 
managers shall file a copy of the order for levy with the 
auditor of each affected county.  The auditor shall extend the 
levy against affected properties as in proceedings for the levy, 
assessment, and collection of assessments in drainage 
proceedings conducted under article 5, sections 77 to 83.  
[112.64 s. 3] 
    Sec. 52.  [103D.641] [WORK WITHOUT BID.] 
     If the managers find that the estimated cost of repair, 
including all fees and costs incurred for proceedings relating 
to it, is less than $20,000, it may have the work done by 
contract without advertising for bids.  [112.64 s. 4] 

                GENERAL PROCEDURE TO ESTABLISH PROJECTS 
    Sec. 53.  [103D.701] [PROJECT INITIATION.] 
    Projects may not be initiated until the board approves a 
watershed management plan for the watershed district.  The 
projects of the watershed district that are to be paid for by 
assessment of the benefited properties must be initiated: 
    (1) by a project petition filed with the managers; 
    (2) by unanimous resolution of the managers; or 
    (3) as otherwise prescribed by this chapter.  [112.47; 
112.48 s. 1] 
    Sec. 54.  [103D.705] [PROJECT PETITION.] 
    Subdivision 1.  [REQUIREMENTS.] A project within the 
watershed district that generally conforms with the watershed 
management plan may be initiated by a project petition.  A 
project petition must contain:  
    (1) a description of the proposed project and the purpose 
to be accomplished; 
    (2) a description of the property where the proposed 
project passes over or is located; 
    (3) a general description of the part of the watershed 
district that will be affected, if less than the entire 
watershed district; 
    (4) the necessity for the proposed project; 
    (5) a statement that the proposed project will be conducive 
to public health, convenience, and welfare; and 
    (6) a statement that the petitioners will pay all costs and 
expenses that may be incurred if the proceedings are dismissed 
or a construction contract is not awarded for the proposed 
project.  [112.48 s. 1, 1a] 
    Subd. 2.  [SIGNATURES.] (a) The project petition must be 
signed by: 
    (1) at least 25 percent of the property owners or the 
owners of more than 25 percent of the property within the limits 
of the area proposed to be improved, unless the project consists 
of the establishment of a new drainage system as defined in 
article 5, section 1, subdivision 12, or the improvement of an 
existing drainage system; 
    (2) if the project consists of the establishment of a new 
drainage system as defined in article 5, section 1, subdivision 
12, a majority of the owners of the property that the proposed 
project passes over or is located on, or the owners of at least 
60 percent of the area of the property that the proposed project 
passes over or is located on; 
    (3) if the project consists of the improvement of an 
existing drainage system as defined in article 5, section 29, 
subdivision 2, at least 26 percent of the owners of the property 
proposed to be improved by the project or that the proposed 
project passes over, or the owners of at least 26 percent of the 
area proposed to be improved by the project or that the proposed 
project passes over; 
    (4) a county board of a county affected by the watershed 
district; or 
    (5) the governing body of a city entirely or partly within 
the area proposed to be improved. 
    (b) If a proposed project improves property entirely within 
a city, a petition must originate from the governing body of the 
city. 
    (c) For a signature on a project petition, holders of 
easements for electric or telephone transmission or distribution 
lines are not considered owners.  [112.48 s. 1] 
    Subd. 3.  [PETITIONERS' DEPOSIT OR BOND.] (a) When a 
project petition is filed and before the managers take action on 
the project petition, one or more of the petitioners must 
deposit at least $2,000 with the managers.  The deposit must be 
conditioned to pay all costs and expenses incurred if the 
project petitioned for is not constructed.  
    (b) Alternatively, with the approval of the managers, one 
or more of the petitioners may make and file a bond payable to 
the watershed district named in the petition.  The bond must be 
for at least $2,000 with adequate sureties, subject to the 
approval of the managers of the watershed district where the 
bond is filed.  The bond must be conditioned to pay all costs 
and expenses incurred if the proceedings are dismissed or a 
contract is not entered into to construct the project petitioned 
for. 
    (c) If, before a project is established, the petitioner's 
deposit or bond is insufficient to protect the watershed 
district from loss from the costs or expenses incurred or to be 
incurred, the watershed district must require an additional 
deposit or bond.  Further proceedings must be stopped until an 
adequate deposit or bond is furnished.  If the additional 
deposit or bond is not furnished within a time set by the 
managers, the proceedings may be dismissed.  
    (d) In proceedings to establish a project, the expenses 
incurred before the project is established may not exceed the 
deposit or the bond furnished by the petitioners.  A claim in 
excess of the amount of the petitioners' deposit or bond may not 
be audited or paid by the watershed district unless the 
petitioners file an additional deposit or bond within a time and 
in an amount directed by the managers.  
    (e) If a project petition is signed by a county board or 
governing body of a city, a bond is not required.  [112.48 s. 2] 
    Subd. 4.  [PETITIONERS MAY DISMISS PETITION.] The 
petitioners may dismiss the petition upon payment of costs and 
expenses.  [112.49 s. 4] 
    Sec. 55.  [103D.711] [ENGINEER'S REPORT.] 
    Subdivision 1.  [DETERMINATION.] If the managers determine 
that a proper project petition has been filed, the proposed 
project promotes the public interest and welfare, is practicable 
and conforms with the watershed management plan of the watershed 
district, the managers must:  
    (1) identify the project proceeding by name and number; and 
    (2) designate an engineer to make surveys, maps, and a 
report on the proposed project.  [112.49 s. 1] 
    Subd. 2.  [REQUIREMENTS.] (a) The engineer's report must 
include findings and recommendations about the proposed 
project.  If the engineer finds the improvement feasible, the 
engineer must provide a plan of the proposed project as part of 
the report.  The plan must include: 
    (1) a map of the area to be improved, drawn to scale, 
showing the location of the proposed improvements; 
    (2) the estimated total cost of completing the project 
including construction, supervision, and administrative costs; 
    (3) the acreage required as right-of-way listed by each lot 
and 40-acre tract or fraction of the lot or tract under separate 
ownership; and 
    (4) other details and information to inform the managers of 
the practicability and necessity of the proposed project with 
the engineer's recommendations on these matters.  
    (b) The map of the area must include: 
     (1) the location and adequacy of the outlet; 
    (2) the watershed of the project area; 
    (3) the location of existing highways, bridges, and 
culverts; 
    (4) the property, highways, and utilities affected by the 
project with the names of the known property owners; 
    (5) the location of public land and water affected by the 
project; and 
    (6) other physical characteristics of the watershed 
necessary to understand the area.  [112.49 s. 1] 
    Subd. 3.  [STATE AND FEDERAL PROJECTS MAY BE INCLUDED.] The 
engineer may adopt, approve, and include as a part of the 
engineer's report a project of the state or federal government 
that is pertinent to the project and may accept data, plats, 
plans, details, or information pertaining to the state or 
federal project given to the engineer by the state or federal 
agency.  The engineer shall omit the items required in 
subdivision 2 from the engineer's report if the data given by 
the state or federal government is sufficient to meet the 
requirements of subdivision 2.  [112.49 s. 2] 
    Subd. 4.  [HEARING AFTER UNFAVORABLE ENGINEER'S 
REPORT.] (a) If the engineer's report is unfavorable, the 
managers shall, by order, within 35 days set a time and place 
within the watershed district for a hearing for the petitioners 
to demonstrate why the managers should not refer the petition 
back to the petitioners for further proceedings or dismiss the 
petition.  
    (b) The hearing notice must state:  
    (1) that the engineer's report is unfavorable; 
    (2) that the engineer's report is on file with the managers 
and may be reviewed; and 
    (3) the time and place for the hearing.  
    (c) The managers shall mail a copy of the notice to each of 
the petitioners at least 14 days before the hearing.  [112.49 s. 
3] 
    Subd. 5.  [ADVISORY REPORTS.] (a) When the engineer's 
report is filed with the managers, the managers shall send a 
complete copy to the director and to the board.  
    (b) The director and the board shall examine the engineer's 
report and by 30 days after receiving the report, the director 
shall make a director's advisory report and the board shall make 
a board's advisory report which must include:  
    (1) a statement on whether the engineer's report is 
incomplete and not in accordance with this chapter; 
    (2) a statement of whether the engineer's report is 
approved as being a practical plan; 
    (3) if the project as planned does not meet approval, 
recommendations for changes considered advisable must be stated 
or an opinion that the proposed project or improvement is not 
practical; and 
    (4) a recommendation as to whether a soil survey appears 
advisable.  
    (c) The director's advisory report and the board's advisory 
report shall be directed to and filed with the managers. 
    (d) The director's advisory report and the board's advisory 
report shall be considered advisory only.  [112.49 s. 6] 
    Subd. 6.  [ADVISORY REPORTS MUST BE FILED BEFORE NOTICE.] A 
notice may not be issued for the final hearing until the board's 
advisory report and the director's advisory report are filed or 
the time for filing the reports with the managers has expired.  
[112.49 s. 6] 
    Subd. 7.  [FORM.] The findings, recommendations, and 
content of the engineering report shall conform as nearly as 
practicable to the requirements of this section.  [112.49 s. 7] 
    Subd. 8.  [SOIL SURVEY.] If a soil survey is recommended to 
be made in the director's advisory report or the board's 
advisory report, the engineer shall make the soil survey and a 
soil survey report.  The soil survey report must be submitted to 
the managers before the final hearing.  [112.49 s. 6] 
    Sec. 56.  [103D.715] [APPRAISERS.] 
    Subdivision 1.  [APPOINTMENT.] After the engineer's report 
is filed, the managers shall, with the least possible delay, 
appoint three disinterested resident owners of the state as 
appraisers.  [112.50 s. 1] 
    Subd. 2.  [OATH.] An appraiser must subscribe to an oath to 
faithfully and impartially perform the appraiser's duties.  
[112.50 s. 1] 
    Subd. 3.  [DUTIES.] The appraisers shall with or without 
the engineer determine the benefits and damages to property 
affected by the proposed project, including property owned by 
the state or a state agency, highways, and other property likely 
to be affected by the proposed project or that may be used or 
taken for construction or maintenance.  [112.50 s. 1] 
    Subd. 4.  [BENEFITS AND DAMAGES TO STATE LAND.] Benefits 
and damages to property owned by the state or a state agency, 
held and used for the purposes described in article 5, sections 
5 and 51, subdivision 1, must be determined as provided in 
article 5, sections 5 and 51, subdivision 1, as they are 
applicable.  [112.50 s. 1] 
    Subd. 5.  [COMPENSATION.] An appraiser may be paid on a per 
diem basis for each day the appraiser is necessarily engaged in 
the performance of duties and for actual and necessary 
expenses.  The compensation shall be set by the managers, paid 
by the watershed district, and included in the cost of the 
project.  [112.50 s. 1] 
    Sec. 57.  [103D.721] [DETERMINATION OF BENEFITS AND DAMAGES 
BY MANAGERS.] 
    Subdivision 1.  [AUTHORITY.] The managers may, in their 
discretion, use the procedure in this section to determine 
benefits and damages.  [112.50 s. 1] 
    Subd. 2.  [DETERMINATION.] After the engineer's report is 
filed, the managers, with the assistance of the engineer, shall 
determine the benefits or damages to the property affected by 
the proposed project, including property owned by the state or a 
state agency, highways, and other property likely to be affected 
by the proposed improvement or that may be used or taken for 
construction or maintenance.  [112.50 s. 1] 
    Subd. 3.  [STATE PROPERTY.] Benefits and damages to 
property owned by the state or a state agency that is held and 
used for the purposes described in article 5, sections 5 and 51, 
subdivision 1, shall be determined as provided in article 5, 
sections 5 and 51, subdivision 1, as they are applicable.  
[112.50 s. 1] 
    Subd. 4.  [WATER MANAGEMENT ASSESSMENT PORTION.] The 
managers must determine the amount to be paid and generally 
assessed by the watershed district for the basic water 
management portion of the improvement projects.  [112.50 s. 1] 
    Sec. 58.  [103D.725] [BENEFITED PROPERTY, DETERMINATION.] 
    Subdivision 1.  [APPRAISERS' STANDARDS.] If the proposed 
project includes the construction or improvement of a ditch, 
stream, river, or watercourse, or structures for the control or 
alleviation of damages from flood waters, the appraisers shall 
be governed by article 5, sections 50 to 52.  [112.501 s. 1] 
    Subd. 2.  [DETERMINATION OF BENEFITS.] In proceedings under 
this chapter, assessments for benefits shall be made based on 
the benefits to the property because of the project affecting 
the property.  Benefited property must include: 
    (1) all property, including property owned by the state or 
a political subdivision receiving direct benefits, including 
assessments for drainage, recreation, commercial navigation, 
disposal of sewage or waste material, bank stabilization, flood 
control, land reclamation, prevention of siltation, control of 
erosion, and maintenance of lake levels; 
    (2) all property that is contributing water or is furnished 
an improved drainage outlet and all property that contributes 
waters that are stored, handled, or controlled by the proposed 
project; 
    (3) all property that is not receiving but needs drainage 
and that is furnishing waters handled or controlled by the 
proposed project; 
    (4) benefits to the state by reason of the improvement of 
lakes, streams, or other bodies of water as a place for 
propagation, protection, and preservation of fish and other 
forms of wildlife, that are assessable against the state to the 
extent and in the manner provided in section 84A.55, subdivision 
9, and within the available appropriation; 
    (5) benefits to municipal corporations that occur to the 
property in the municipality generally and that may be in 
addition to special benefits to specific property within the 
municipality; and 
    (6) benefits that will result to property used for railway 
or other utility purposes.  [112.501 s. 2] 
    Sec. 59.  [103D.731] [APPRAISERS' REPORT, EXAMINATION.] 
    (a) The appraisers shall prepare an appraisers' report of 
the benefits and damages determined and file the report with the 
managers.  
    (b) After the appraisers' report is filed, the managers 
shall examine the report and determine whether:  
    (1) the report was made in conformity with the requirements 
of this chapter; and 
    (2) the total benefits are greater than the total estimated 
costs and damages.  
    (c) If the managers determine the appraisers' report is 
inadequate in any manner, the managers may return the report to 
the appraisers for further study and report.  [112.51] 
    Sec. 60.  [103D.735] [HEARING ON PETITION AND REPORTS.] 
    (a) The managers shall order a final hearing by 35 days 
after: 
    (1) the engineer's report is filed; 
    (2) the appraisers' report is filed; and 
    (3) the director's advisory report and the board's advisory 
report are filed or the time for that filing has expired.  
    (b) The order for a final hearing must set a time and place 
within the watershed district for a hearing upon the petition or 
resolution and reports.  [112.52] 
    Sec. 61.  [103D.741] [HEARING NOTICE.] 
    Subdivision 1.  [PUBLISHED FINAL HEARING NOTICE.] The 
managers shall give notice by publication of the final hearing.  
The final hearing notice must contain:  
    (1) a statement of the pendency of the petition or 
resolution; 
    (2) the time and place for hearing; 
    (3) a statement that the engineer's report and appraisers' 
report, including the plans, have been filed with the managers 
and are subject to inspection; 
    (4) a brief description of the proposed project; 
    (5) a description of the properties benefited or damaged, 
the names of the owners of the properties, the public and other 
corporations affected by the project as shown by the engineer's 
report and appraisers' report or may include a map of the 
affected area in lieu of the names of the owners and of the 
descriptions of the properties affected by the project; and 
    (6) a statement requiring all parties interested in the 
proposed project to appear before the managers at the time and 
place designated in the final hearing notice to present 
objections, and to show why an order should not be made by the 
managers granting the petition, confirming the reports of the 
engineer and appraisers, and ordering the establishment and 
construction of the project.  [112.53 s. 1] 
    Subd. 2.  [MAILED FINAL HEARING NOTICE.] (a) The managers 
shall give the final hearing notice by mail, within one week 
after the beginning of publication, to the director and to each 
person, corporation, and public body that owns property 
benefited or damaged by the proposed project as shown by the 
engineer's and appraisers' report.  
    (b) The mailed final hearing notice must contain: 
     (1) a brief description of the proposed project; 
     (2) a statement that the engineer's report and appraisers' 
report are on file with the managers and available for public 
inspection; 
     (3) the time and place of hearing; and 
    (4) a statement that the addressee's name appears as an 
affected party.  [112.53 s. 2] 
    Subd. 3.  [NOTICE OF PROPERTY ACQUISITION BY WATERSHED 
DISTRICT.] (a) If the watershed district must acquire the 
ownership of real property, the managers must record a notice of 
pendency of the watershed district's proceeding to acquire 
property in the office of county recorder of the county where 
the property is located before the appraisers' report is filed.  
The pendency notice must state the purpose for which the 
property is to be acquired.  
    (b) By 20 days before the final hearing, the final hearing 
notice, in addition to being given in the manner required in 
subdivisions 1 and 2, must be served on the owners of the 
property to be acquired, in the same manner as a summons in a 
civil action.  In addition to the other requirements of the 
final hearing notice, the notice to property owners must: 
    (1) describe the property to be acquired; 
    (2) state by whom and for what purpose it is to be taken; 
     (3) give the names of all persons appearing of record or 
known to the managers to be the owners; 
    (4) state that benefits and damages have been determined; 
and 
    (5) state that the final hearing will be held by the 
managers at the time and place specified in the notice.  [112.53 
s. 3] 
    Subd. 4.  [FINAL HEARING NOTICE IN MORE THAN ONE 
COUNTY.] If a project affects the property in more than one 
county, separate final hearing notices must be prepared and 
published in each county affected showing only the general 
description of the proposed project and the names and 
descriptions of the property affected in the county or, instead 
of the names and descriptions, a map of the area affected in the 
county.  [112.53 s. 4] 
    Sec. 62.  [103D.745] [FINAL HEARING.] 
    Subdivision 1.  [HEARING.] (a) At the time and place 
specified in the final hearing notice, the managers must hear 
all parties interested for and against the establishment of the 
proposed project and confirm the engineer's report and the 
appraisers' report.  
    (b) Questions about the proposed project including 
jurisdiction, sufficiency of the petition or resolution, 
practicability, and necessity shall be determined by evidence 
presented at the hearing.  Findings made by the managers before 
the final hearing are not conclusive but are subject to further 
investigation, consideration, and determination at the final 
hearing.  [112.54] 
    Subd. 2.  [MODIFICATION OF REPORTS.] (a) The managers may 
order and direct the modification of:  
    (1) the engineer's report within the scope of the watershed 
management plan for the watershed district; 
    (2) the assessment of benefits and damages; and 
    (3) amendment or change of the list of property reported as 
assessable for construction and maintenance.  
    (b) If the amended engineer's report and appraisers' report 
includes property not included in the original reports, the 
managers shall adjourn the hearing and have an amended notice 
published and mailed with the proper reference to all property 
as amended by the managers.  [112.54] 
    Subd. 3.  [ESTABLISHMENT OF PROJECT.] (a) The managers 
shall make findings, order and direct construction of the 
project, and confirm the engineer's report and the findings of 
the appraisers and the appraisers' report if, at the end of the 
final hearing, the managers find that the project will:  
    (1) be conducive to public health; 
    (2) promote the general welfare; 
    (3) be in compliance with this chapter; and 
    (4) result in benefits that will be greater than the cost 
of the construction and damages.  
    (b) The order may authorize the construction of the project 
as a whole or authorize different parts of the project to be 
constructed separately.  
    (c) The managers shall order the engineer to proceed with 
making the necessary surveys and preparing plans and 
specifications that are needed to construct the project and 
report the results of the surveys and plans to the managers.  
[112.54] 
    Subd. 4.  [RECESS UNTIL AWARDING CONTRACT.] The final 
hearing shall be recessed until the engineer's report and the 
bids are received.  The hearing may be recessed to allow 
compliance with section 63 if it becomes applicable.  [112.54] 

                        CONSTRUCTION OF PROJECTS 
    Sec. 63.  [103D.801] [PROCEDURE WHEN CONTRACT IS NOT LET.] 
    If all of the bids received are for a price more than 30 
percent greater than the engineer's estimate in the engineer's 
report, or for a price in excess of the benefits less damages 
and other costs, the managers shall follow the procedure 
described in article 5, section 65.  [112.541] 
    Sec. 64.  [103D.805] [FILING ORDER OF MANAGERS ESTABLISHING 
PROJECT.] 
    An order of the managers establishing the project and 
authorizing construction must immediately be filed with the 
secretary of the watershed district, and a certified copy of the 
order must be filed with the auditor of each county affected, 
the board, the commissioner, the director, the pollution control 
agency, and the commissioner of health.  [112.55] 
    Sec. 65.  [103D.811] [BIDS FOR CONSTRUCTION.] 
    Subdivision 1.  [CALL FOR BIDS.] After an establishment 
order has been made by the managers directing the establishment 
of a project, the managers shall call for bids for the 
construction of the work and give notice by publication 
specifying the time and place when the bids will be opened for 
awarding a contract for the construction of the project.  The 
contract may be awarded in sections or as a whole, as directed 
by the managers.  [112.57] 
    Subd. 2.  [BID NOTICE.] A bid notice shall be published in 
at least one of the newspapers in the state where notices are 
usually published.  [112.57] 
    Subd. 3.  [AWARDING OF CONTRACT.] (a) At a time and place 
specified in the bid notice, the managers may accept or reject 
any or all bids and may award the contract to the lowest 
responsible bidder.  The bidder to whom the contract is to be 
awarded must give a bond, with ample security, conditioned by 
satisfactory completion of the contract.  
    (b) Bids must not be considered which in the aggregate 
exceed by more than 30 percent the total estimated cost of 
construction.  
    (c) The contract must be in writing and be accompanied by 
or refer to the plans and specifications for the work to be done 
as prepared by the engineer for the watershed district.  The 
plans and specifications shall become a part of the contract.  
    (d) The contract shall be approved by the managers and 
signed by the president, secretary, and contractor.  [112.57] 
    Sec. 66.  [103D.815] [CONTROL OF CONTRACTS.] 
    Subdivision 1.  [MANAGERS' CONTROL OF CONTRACTS.] The 
managers have full control of contracts of the watershed 
district and matters pertaining to the contracts.  [112.50] 
    Subd. 2.  [EXTENSION OF CONTRACTS.] If a contractor fails 
to complete a project within the time or in the manner specified 
in the contract, the managers may:  
    (1) extend the time for completion; 
    (2) refuse an extension of time; 
    (3) cancel the contract, readvertise, and award a new 
contract; 
    (4) require surety for the contractor to complete the 
project; 
     (5) proceed to have the contract otherwise completed at the 
expense of the contractor and the surety; or 
    (6) take other action with reference to the contract in the 
interest of the watershed district.  [112.59] 
    Subd. 3.  [ENGINEER'S AUTHORITY OVER 
CONTRACTOR.] Applicable provisions of chapter 103E govern the 
relations between the engineer and the contractor, including the 
examination and report of the engineer and the amount and time 
of payment.  [112.59] 
     Subd. 4.  [EXPENSE RECORD.] (a) The managers shall keep an 
accurate account of all expenses incurred, including:  
     (1) the compensation of the engineer and the engineer's 
assistants; 
     (2) the compensation and expenses of the appraisers as 
provided in section 56, subdivision 5; 
    (3) the compensation of the petitioners' attorney; 
     (4) the cost of petitioners' bond; 
     (5) the fees of all county officials necessitated by the 
project, which are in addition to all fees otherwise allowed by 
law; and 
    (6) the time and expenses of all employees of the watershed 
district, including the expenses of the managers, while engaged 
in an authorized project. 
    (b) Fees and expenses 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 project.  [112.59] 
    Sec. 67.  [103D.821] [DAMAGE TO HIGHWAY OR BRIDGE BY 
PASSAGE OF EQUIPMENT.] 
    Subdivision 1.  [NOTICE.] If it is necessary to pass a 
dredge or other equipment through a bridge or grade of a highway 
or railroad owned by a corporation, county, town, or 
municipality, the managers shall give notice to the owner of the 
bridge or grade by 20 days before the removal so the bridge or 
grade may be removed temporarily to allow the passage of the 
equipment, or an agreement may be immediately entered into to 
allow the passage.  [112.66] 
    Subd. 2.  [COST PAID BY WATERSHED DISTRICT.] The owner of 
the bridge or grade shall keep an itemized account of the cost 
of removal and if necessary, of replacing of the bridge or 
grade.  The actual cost must be paid by the watershed district.  
[112.66] 
    Subd. 3.  [MANAGERS MAY REMOVE BRIDGE OR GRADE.] If the 
owner of the bridge or grade refuses to provide for the passage 
of the equipment, the managers may remove the bridge or grade at 
the expense of the watershed district, interrupting traffic in 
the least degree consistent with good work and without delay or 
unnecessary damage.  [112.66] 
    Subd. 4.  [OWNERS LIABLE FOR DELAY.] If the managers are 
prevented from moving the equipment, the owner of the bridge or 
grade is liable for the damages resulting from the delay.  
[112.66] 

               FUNDING OF WATERSHED DISTRICT AND PROJECTS 
    Sec. 68.  [103D.901] [ASSESSMENTS, LEVIES.] 
    Subdivision 1.  [ASSESSMENT.] (a) After the managers file 
an approved assessment statement listing the property and 
corporations benefited or damaged or otherwise affected by a 
project with the auditor of an affected county, the auditor 
shall assess the amount specified in the assessment statement 
against the property, municipalities, or other corporations as 
specified in the pertinent provisions of chapter 103E.  [112.60 
s. 1] 
    (b) For a watershed district entirely within the 
metropolitan area, the auditor must mail an assessment notice to 
property owners and corporations benefited and damaged before 
the assessment is made under paragraph (a).  The assessment 
notice must include:  
    (1) the amount to be specially assessed against the 
property; 
    (2) the right of the property owner to prepay the entire 
assessment and to whom prepayment must be made; 
    (3) whether partial prepayment of the assessment is 
authorized; 
    (4) the time within which prepayment may be made without 
interest being charged; and 
    (5) the rate of interest to be charged if the assessment is 
not prepaid within the required time period.  [112.60 s. 1a] 
    Subd. 2.  [COUNTY FUNDING.] After the assessment statement 
is filed with the auditor, the county board of each affected 
county shall provide funds to meet its proportionate share of 
the total cost of the project, as shown by the engineer's report 
and order of the managers.  The county may issue bonds of the 
county in the manner provided by article 5, section 84.  If an 
improvement is to be constructed under section 46, the 
provisions of article 5, section 84, requiring the county board 
to award a contract for construction before issuing bonds is not 
applicable to bonds issued to provide the funds required to be 
furnished by this section.  [112.60 s. 2] 
    Subd. 3.  [LEVY AND COLLECTION.] (a) The respective county 
auditors and county treasurers shall levy and collect the amount 
shown in the tabular statement and lien as provided in article 
5, sections 77 to 83.  [112.60 s. 3] 
    (b) For a watershed district entirely within the 
metropolitan area, the auditor must mail an assessment notice to 
the owners of affected property as provided in subdivision 1, 
paragraph (b), before the assessment is levied.  The assessment 
may be prepaid as provided in paragraphs (c) and (d).  [112.64 
s. 3a] 
    (c) For a watershed district entirely within the 
metropolitan area, a property owner or corporation may prepay 
the entire assessment at any time before the first installment 
of the assessment is entered on the tax lists for the year with 
the interest that has accrued to the date of payment, except 
that interest may not be charged on an assessment that is 
prepaid within 30 days after the assessment notice is mailed.  
[112.60 s. 5] 
    (d) After the first installment of an assessment is entered 
on the tax list, a property owner or corporation may prepay the 
entire assessment remaining due before November 15 with interest 
accrued to December 31 of the year in which the prepayment is 
made.  [112.60 s. 5] 
    (e) The money received by the treasurer of a county from 
the sale of bonds, assessments, or otherwise, for the benefit of 
the watershed district shall be accounted for by the auditor and 
paid to the treasurer of the watershed district.  [112.60 s. 3] 
    Subd. 4.  [ASSESSMENT MAY NOT EXCEED BENEFITS.] (a) An 
assessment may not be levied against property or corporations 
benefited under this chapter in excess of the amount of benefits 
received as set by the order of the managers authorizing the 
construction of the project or subsequently determined on 
appeal.  [112.60 s. 4] 
    (b) If the damages for a project financed by special 
assessment are awarded and confirmed, the managers must 
determine that the project's benefits exceed the total costs, 
including damages awarded.  
    (c) The managers shall amend the project's statement filed 
with the county auditor to reflect the amount of damages 
awarded.  [112.87] 
    Subd. 5.  [DAMAGES PAID BEFORE ENTERING PROPERTY.] Before 
entering property for which damages were awarded to begin 
construction of the project, the managers shall pay the amount 
of damages awarded less any assessment against the property from 
the funds provided by the county board under subdivision 3.  If 
the amount of damages is appealed, damages may not be paid until 
the final determination of the appeal.  [112.87] 
    Sec. 69.  [103D.905] [FUNDS OF WATERSHED DISTRICT.] 
    Subdivision 1.  [GENERALLY.] The money of a watershed 
district consists of the funds established in this section.  
[112.61 s. 1] 
    Subd. 2.  [ORGANIZATIONAL EXPENSE FUND.] (a) An 
organizational expense fund, consisting of an ad valorem tax 
levy, shall not exceed 0.01596 percent of taxable market value, 
or $60,000, whichever is less.  The money in the fund shall be 
used for organizational expenses and preparation of the 
watershed management plan for projects.  
    (b) The managers may borrow from the affected counties up 
to 75 percent of the anticipated funds to be collected from the 
organizational expense fund levy and the counties affected may 
make the advancements.  
    (c) The advancement of anticipated funds shall be 
apportioned among affected counties in the same ratio as the net 
tax capacity of the area of the counties within the watershed 
district bears to the net tax capacity of the entire watershed 
district.  If a watershed district is enlarged, an 
organizational expense fund may be levied against the area added 
to the watershed district in the same manner as provided in this 
subdivision.  
    (d) Unexpended funds collected for the organizational 
expense may be transferred to the administrative fund and used 
for the purposes of the administrative fund.  [112.61 s. 2] 
    Subd. 3.  [ADMINISTRATIVE FUND.] An administrative fund, 
consisting of an ad valorem tax levy, may not exceed 0.02418 
percent of taxable market value, or $125,000, whichever is 
less.  The money in the fund shall be used for general 
administrative expenses and for the construction and maintenance 
of projects of common benefit to the watershed district.  The 
managers may make an annual levy for the administrative fund as 
provided in section 70.  In addition to the annual 
administrative levy, the managers may annually levy a tax not to 
exceed 0.00798 percent of taxable market value for a period not 
to exceed 15 consecutive years to pay the cost attributable to 
the basic water management features of projects initiated by 
petition of a municipality of the watershed district.  [112.61 
s. 3] 
    Subd. 4.  [BOND FUND.] A bond fund consists of the proceeds 
of bonds issued by the watershed district secured by the 
property of the watershed district that is producing or is 
likely to produce a regular income.  The bond fund is to be used 
for the payment of the purchase price of the property or the 
value of the property as determined by the court in proper 
proceedings, and for the improvement and development of the 
property.  [112.61 s. 4] 
    Subd. 5.  [CONSTRUCTION FUND.] (a) A construction fund 
consists of:  
     (1) the proceeds of the sale of county bonds; 
     (2) construction loans from any agency of the federal 
government; and 
     (3) special assessments to be levied to supply funds for 
the construction of the projects of the watershed district, 
including reservoirs, ditches, dikes, canals, channels, and 
other works, and the expenses incident to and connected with the 
construction. 
     (b) Construction loans from an agency of the federal 
government may be repaid from money collected by special 
assessments on properties benefited by the project.  [112.61 s. 
5] 
    Subd. 6.  [PRELIMINARY FUND.] A preliminary fund consists 
of funds authorized to be provided.  The preliminary fund is to 
be used for preliminary work on proposed works of the watershed 
district.  [112.61 s. 6] 
    Subd. 7.  [REPAIR AND MAINTENANCE FUNDS.] Repair and 
maintenance funds are established under section 50, subdivision 
2.  [112.61 s. 7] 
    Subd. 8.  [SURVEY AND DATA ACQUISITION FUND.] (a) A survey 
and data acquisition fund is established and used only if other 
funds are not available to the watershed district to pay for 
making necessary surveys and acquiring data.  
    (b) The survey and data acquisition fund consists of the 
proceeds of a property tax that can be levied only once every 
five years.  The levy may not exceed 0.02418 percent of taxable 
market value.  
    (c) The balance of the survey and data acquisition fund may 
not exceed $50,000.  
    (d) In a subsequent proceeding for a project where a survey 
has been made, the attributable cost of the survey as determined 
by the managers shall be included as a part of the cost of the 
work and the sum shall be repaid to the survey and data 
acquisition fund.  [112.61 s. 8] 
    Sec. 70.  [103D.911] [BUDGET.] 
    Subdivision 1.  [HEARING.] (a) Before adopting a budget, 
the managers shall hold a public hearing on the proposed budget. 
    (b) The managers shall publish a notice of the hearing with 
a summary of the proposed budget in one or more newspapers of 
general circulation in each county consisting of part of the 
watershed district.  The notice and summary shall be published 
once each week for two successive weeks before the hearing.  The 
last publication shall be at least two days before the hearing.  
[112.611 s. 1] 
    Subd. 2.  [ADOPTION.] On or before October 1 of each year, 
the managers shall adopt a budget for the next year and decide 
on the total amount necessary to be raised from ad valorem tax 
levies to meet the watershed district's budget.  [112.611 s. 1] 
    Sec. 71.  [103D.915] [TAX LEVY.] 
    Subdivision 1.  [CERTIFICATION TO AUDITOR.] After adoption 
of the budget and no later than October 1, the secretary of the 
watershed district shall certify to the auditor of each county 
within the watershed district the county's share of the tax, 
which shall be an amount bearing the same proportion to the 
total levy as the net tax capacity of the area of the county 
within the watershed bears to the net tax capacity of the entire 
watershed district.  The maximum amount of a levy may not exceed 
the amount provided in section 69.  [112.611 s. 1] 
    Subd. 2.  [LEVY.] The auditor of each county in the 
watershed district shall add the amount of a levy made by the 
managers to the other tax levies on the property of the county 
within the watershed district for collection by the county 
treasurer with other taxes.  The county treasurer shall make 
settlement of the taxes collected with the treasurer of the 
watershed district in the same manner as other taxes are 
distributed to the other political subdivisions.  The levy 
authorized by this section is in addition to other county taxes 
authorized by law.  [112.611 s. 2] 
    Sec. 72.  [103D.921] [DISTRICT COURT TO CREATE PRELIMINARY 
FUND.] 
    Subdivision 1.  [PETITION.] (a) If a petition has been 
filed with the managers for the construction of a project within 
the watershed district, the managers may file a petition with 
the district court in the county where the watershed district 
has its principal place of business asking that a preliminary 
expense fund be created for the watershed district.  
     (b) The managers may subsequently amend or supplement the 
petition if necessary.  At least ten days' notice of a petition 
or amended or supplementary petition must be given to the 
auditor of each county affected by the proposed project.  
     (c) The preliminary fund must be of a size that is 
proportionate to the needs of the watershed district for 
preliminary work on the proposed project.  [112.62 s. 1] 
    Subd. 2.  [COURT ORDER OF AMOUNT.] The district court after 
the hearing may designate the amount of the fund and set the 
proportionate amount that each county affected by the 
improvement shall pay, in proportion to the area in the county 
affected by the proposed project.  The court shall order the 
auditor of each county to draw a warrant on the treasurer of the 
county for the payment of the amount specified in the order, 
payable to the treasurer of the watershed district.  The sum 
advanced by the county shall be charged to the watershed 
district, and must be repaid with interest as soon as the 
watershed district has funds for that purpose. [112.62 s. 2] 
     Subd. 3.  [USE OF FUND.] The preliminary fund must be used 
by the managers for preliminary work.  If the managers incur 
expenses for surveys or other preliminary work on a proposed 
project, all expenses connected with the work shall be included 
in the cost of construction of the proposed project.  If 
construction of the project is authorized by the managers, the 
money advanced from the preliminary fund shall be repaid from 
assessments for the project.  [112.62 s. 2] 
    Subd. 4.  [APPROPRIATIONS FROM GOVERNMENTAL BODIES.] The 
state, state agencies, and political subdivisions may 
appropriate money necessary to pay their proportionate share of 
the preliminary expenses, determined by the managers according 
to the benefits that will probably accrue from the proposed 
project.  [112.62 s. 4] 
    Subd. 5.  [PRELIMINARY FUND.] The district court may order 
a preliminary fund for all works of the watershed district 
instituted under section 53.  [112.62 s. 5] 
    Sec. 73.  [103D.925] [WARRANTS.] 
    The managers may issue warrants of the watershed district 
to pay contracts for the construction of projects, ordinary 
general expenses, and expenses incurred in making repairs that 
have been approved by the managers, only if there are sufficient 
funds available for payment in the watershed district treasury.  
[112.63] 

                               ARTICLE 5 

                              CHAPTER 103E 

                           DRAINAGE OF WATERS 
    Section 1.  [103E.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  [106A.005 s. 1] 
    Subd. 2.  [AFFECTED.] "Affected" means benefited or damaged 
by a drainage system or project.  [106A.005 s. 2] 
    Subd. 3.  [AUDITOR.] "Auditor" means the auditor of the 
county where the petition for a drainage project was properly 
filed.  [106A.005 s. 3] 
    Subd. 4.  [BOARD.] "Board" means the board of commissioners 
of the county where the drainage system or project is located.  
[106A.005 s. 4] 
    Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  [106A.005 s. 5] 
    Subd. 6.  [DIRECTOR.] "Director" means the director of the 
division of waters in the department of natural resources.  
[106A.005 s. 6] 
    Subd. 7.  [DISMISSAL OF PROCEEDINGS.] "Dismissal of 
proceedings" means that the petition and proceedings related to 
the petition are dismissed.  [106A.005 s. 7] 
    Subd. 8.  [DITCH.] "Ditch" means an open channel to conduct 
the flow of water.  [106A.005 s. 8] 
    Subd. 9.  [DRAINAGE AUTHORITY.] "Drainage authority" means 
the board or joint county drainage authority having jurisdiction 
over a drainage system or project.  [106A.005 s. 9] 
    Subd. 10.  [DRAINAGE LIEN.] "Drainage lien" means a lien 
recorded on property for the costs of drainage proceedings and 
construction and interest on the lien, as provided under this 
chapter.  [106A.005 s. 10] 
    Subd. 11.  [DRAINAGE PROJECT.] "Drainage project" means a 
new drainage system, an improvement of a drainage system, an 
improvement of an outlet, or a lateral.  [106A.005 s. 10a] 
    Subd. 12.  [DRAINAGE SYSTEM.] "Drainage system" means a 
system of ditch or tile, or both, to drain property, including 
laterals, improvements, and improvements of outlets, established 
and 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.  [106A.005 s. 11] 
    Subd. 13.  [ENGINEER.] "Engineer" means the engineer for a 
drainage project appointed by the drainage authority under 
section 36, subdivision 1.  [106A.005 s. 12] 
    Subd. 14.  [ESTABLISHED.] "Established" means the drainage 
authority has made the order to construct the drainage project.  
[106A.005 s. 13] 
    Subd. 15.  [LATERAL.] "Lateral" means any drainage 
construction by branch or extension, or a system of branches and 
extensions, or a drain that connects or provides an outlet to 
property with an established drainage system.  [106A.005 s. 14] 
    Subd. 16.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city or a town having urban powers under 
section 368.01, subdivision 1 or 1a.  [106A.005 s. 16] 
    Subd. 17.  [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.  [106A.005 s. 16] 
    Subd. 18.  [OWNER.] "Owner" means an owner of property or a 
buyer of property under a contract for deed.  [106A.005 s. 16a] 
    Subd. 19.  [PASSES OVER.] "Passes over" means in reference 
to property that has a drainage project or system, the 40-acre 
tracts or government lots or property that is bordered by, 
touched by, or underneath the path of the proposed drainage 
project.  [106A.005 s. 16b] 
    Subd. 20.  [PERSON.] "Person" means an individual, firm, 
partnership, association, or private corporation.  [106A.005 s. 
17] 
    Subd. 21.  [POLITICAL SUBDIVISIONS.] "Political 
subdivisions" means statutory and home rule charter cities, 
counties, towns, school districts, and other political 
subdivisions.  [106A.005 s. 18] 
    Subd. 22.  [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 project.  [106A.005 s. 19] 
    Subd. 23.  [PROPERTY.] "Property" means real property.  
[106A.005 s. 20] 
    Subd. 24.  [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.  [106A.005 s. 21] 
    Subd. 25.  [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.  [106A.005 s. 25] 
    Subd. 26.  [PUBLIC WATERS.] "Public waters" has the meaning 
given in article 7, section 2, subdivision 15.  [106A.005 s. 23] 
    Subd. 27.  [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.  [106A.005 s. 24] 
    Subd. 28.  [ROAD.] "Road" means any road used by the public 
for transportation purposes.  [106A.005 s. 26] 

                            GENERAL PROVISIONS
    Sec. 2.  [103E.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 the public waters work permit requirement 
under article 7, section 22, 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 
article 7, section 16, 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 project 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 project.  For a water 
body or watercourse that is not public waters the drainage 
authority may: 
    (1) lower or establish the level 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 level designated by the drainage authority and to 
drain part of the water body.  [106A.011] 
    Sec. 3.  [103E.015] [CONSIDERATIONS BEFORE DRAINAGE WORK IS 
DONE.] 
    Subdivision 1.  [ENVIRONMENTAL AND LAND USE CRITERIA.] 
Before establishing a drainage project the drainage authority 
must consider: 
    (1) private and public benefits and costs of the proposed 
drainage project; 
    (2) the present and anticipated agricultural land acreage 
availability and use in the drainage project or system; 
    (3) the present and anticipated land use within the 
drainage project or system; 
    (4) flooding characteristics of property in the drainage 
project or system and downstream for 5-, 10-, 25-, and 50-year 
flood events; 
    (5) the waters to be drained and alternative measures to 
conserve, allocate, and use the waters including storage and 
retention of drainage waters; 
    (6) the effect on water quality of constructing the 
proposed drainage project; 
    (7) fish and wildlife resources affected by the proposed 
drainage project; 
    (8) shallow groundwater availability, distribution, and use 
in the drainage project or 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 project, or 
in the construction of or other work affecting a public drainage 
system under any law, the drainage authority or other authority 
having jurisdiction over 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.  [106A.015] 
    Sec. 4.  [103E.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 over 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 rules 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.  
    Subd. 4.  [COMPLIANCE WORK BY DRAINAGE AUTHORITY.] If a 
property owner does not bring an area into compliance with this 
section as provided in the compliance notice, the inspection 
committee or drainage inspector must notify the drainage 
authority.  If a property owner does not bring an area into 
compliance after being notified under section 91, subdivision 2, 
the drainage authority must issue an order to have the work 
performed to bring the property into compliance.  After the work 
is completed, the drainage authority must send a statement of 
the expenses incurred to bring the property into compliance to 
the auditor of the county where the property is located and to 
the property owner.  
    Subd. 5.  [COLLECTION OF COMPLIANCE EXPENSES.] (a) The 
amount of the expenses to bring an area into compliance with 
this section is a lien in favor of the drainage authority 
against the property where the expenses were incurred.  The 
auditor must certify the expenses and enter the amount in the 
same manner as other drainage liens on the tax list for the 
following year.  The amount must be collected in the same manner 
as real estate taxes for the property.  The provisions of law 
relating to the collection of real estate taxes shall be used to 
enforce payment of amounts due under this section.  The auditor 
must include a notice of collection of compliance expenses with 
the tax statement.  
    (b) The amounts collected under this subdivision must be 
deposited in the drainage system account.  [106A.021] 
    Sec. 5.  [103E.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.  [106A.025] 
    Sec. 6.  [103E.031] [CONNECTION WITH DRAINS IN ADJOINING 
STATES.] 
    Subdivision 1.  [PROCEDURE.] If it is necessary to 
construct a drainage project 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 project 
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 
project.  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 project 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 project 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.  [106A.031] 
    Sec. 7.  [103E.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.  [106A.035] 
    Sec. 8.  [103E.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.  [106A.041] 
    Sec. 9.  [103E.043] [INFORMAL MEETINGS.] 
    A drainage authority may hold informal meetings in addition 
to the meetings and hearings required in this chapter to inform 
persons affected by the drainage system about the drainage 
proceedings and provide a forum for informal discussions.  
[106A.043] 
    Sec. 10.  [103E.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.  [106A.045] 
    Sec. 11.  [103E.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 project 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.  [106A.051] 
    Sec. 12.  [103E.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 project has been dismissed 
or the drainage project has not been established, and if 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.  [106A.055] 
    Sec. 13.  [103E.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.  [106A.061] 
    Sec. 14.  [103E.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.  [106A.065] 
    Sec. 15.  [103E.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.  [106A.071] 
    Sec. 16.  [103E.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.  [106A.075] 
    Sec. 17.  [103E.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 willfully obstruct or damage a drainage project 
or system.  
    Subd. 3.  [ALTERING ENGINEER'S MARKING OF STAKES.] A person 
may not willfully change the location or alter markings of 
stakes set by the engineer in a drainage project or system.  
    Subd. 4.  [PENALTY.] Violation of this section is a 
misdemeanor.  [106A.081] 
    Sec. 18.  [103E.085] [ENFORCEMENT.] 
    Subdivision 1.  [WARRANTS AND ARRESTS.] An enforcement 
officer, as defined in section 97A.015, subdivision 18, may 
execute and serve warrants, and arrest persons detected in 
actual violation of sections 1 to 103 as provided in sections 
97A.205 and 97A.211. 
    Subd. 2.  [PROSECUTION.] The county attorney shall 
prosecute all criminal actions arising under this chapter.  
[106A.085] 
    Sec. 19.  [103E.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 court administrator 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 in the district court of the 
county where the drainage proceeding was pending. 
    (b) At the request of the appellant, the trial must be held 
at the district court of the county where the affected property 
is located.  The court administrator of the district court where 
the appeal is first filed shall make, certify, and file with the 
court administrator of the district court of the county where 
the trial is transferred, a transcript of the papers and 
documents on file in the court administrator's office in the 
proceedings related to the matters of the appeal.  After the 
final determination of the appeal, the court administrator 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 court administrator 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.  [106A.091] 
    Sec. 20.  [103E.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 project 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 project 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 
project is affirmed, appeals related to benefits and damages 
must then be tried. 
    Subd. 4.  [PROCEDURE IF APPEAL ORDER ESTABLISHES DRAINAGE 
PROJECT.] If an order refusing to establish a drainage project 
is appealed, and the court, by order, establishes the drainage 
project, the auditor shall give notice by publication of the 
filed order.  The notice is sufficient if it refers to the 
drainage project or 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.  [106A.095] 
    Sec. 21.  [103E.097] [PAYMENT OF ATTORNEY FEES ON APPEAL.] 
    If the commissioner of natural resources is a party making 
an appeal under section 19 or 20 and the commissioner does not 
prevail on the issues appealed, the court may award attorney 
fees to the party prevailing on the appeal.  If more than one 
issue is appealed and the commissioner prevails on some issues 
and does not prevail on others, the court shall determine the 
amount of the attorney fee to be awarded.  [106A.097] 
    Sec. 22.  [103E.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 project and 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 project 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 
project, 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.  [106A.101] 
    Sec. 23.  [103E.105] [ADVICE ABOUT DRAINAGE QUESTIONS.] 
    The director shall provide advice to a drainage authority 
or engineer, upon request, about engineering questions or 
problems in connection with a drainage project or drainage 
system.  [105.40 s. 3] 
    Sec. 24.  [103E.111] [FIELD SURVEYS AND INVESTIGATIONS BY 
DIRECTOR.] 
    Subdivision 1.  [AUTHORIZATION.] If a field survey or 
investigation of a drainage project or drainage system is 
determined to be necessary by the director or is requested in 
writing by the drainage authority, the director may conduct the 
survey or investigation.  [105.40 s. 4] 
    Subd. 2.  [COSTS IF REQUESTED BY DRAINAGE AUTHORITY.] If 
the field survey or investigation is made at the request of a 
drainage authority, the cost must be reported to the drainage 
authority and paid by the drainage authority as a drainage 
project or drainage system expense.  [105.40 s. 4] 
    Sec. 25.  [103E.115] [HYDROLOGICAL AND DRAINAGE 
INFORMATION.] 
    (a) The director may prepare and publish:  (1) runoff data; 
(2) information about the capacity of drain tile and ditches; (3)
specifications for drain tile, ditches, and ditch construction; 
and (4) standard procedural forms for public ditch proceedings.  
    (b) The director may furnish the information to engineers 
and drainage authorities for their advice and information.  
[105.40 s. 2, 5] 
    Sec. 26.  [103E.121] [DRAIN TILE MANUFACTURING STUDIES.] 
    Subdivision 1.  [DRAIN TILE INVESTIGATIONS.] The director 
may: 
    (1) investigate the methods used in the manufacture of 
drain tile; 
    (2) determine the causes of drain tile failure; and 
    (3) conduct research and experimentation to improve the 
quality of drain tile.  [105.40 s. 6] 
    Subd. 2.  [MANUFACTURING INVESTIGATIONS AND TESTS.] The 
director may make inspections and tests of manufacturing 
processes and materials used and the resultant product of a 
manufacturing plant in the state where drain tile is made and 
sold to drainage authorities or the general public.  The 
director, or an authorized agent of the director, must have free 
access to manufacturing plants of drain tile sold in this state 
for inspections and tests.  [105.40 s. 6] 
    Subd. 3.  [DISTRIBUTION OF INFORMATION.] The results of 
inspections and tests must be made public for drainage 
authorities, engineers, tile manufacturers, and others 
interested in the use of drain tile.  [105.40 s. 6] 

                     PETITIONS FOR DRAINAGE PROJECTS
    Sec. 27.  [103E.202] [PETITIONS.] 
    Subdivision 1.  [APPLICABILITY.] This section applies to a 
petition for a drainage project and a petition for repair.  
    Subd. 2.  [SIGNATURES ON PETITION.] (a) A petition must be 
signed by a requisite number of owners of 40-acre tracts or 
government lots and property that the drainage project described 
in the petition passes over, or by the property owners of the 
required percentage of the property area determined by the total 
and percentage of area of 40-acre tracts or government lots that 
the proposed drainage project passes over, excluding areas in 
and holders of easements for utilities and roads.  A petition 
may be signed by the commissioner of transportation or by a 
political subdivision if the property is in their jurisdiction 
and is passed over by the proposed drainage project. 
    (b) Each separate parcel of property counts as one 
signature but the petition must be signed by all owners of the 
parcel to count as a signature.  The signature of each entity 
regardless of the number of parcels of property owned counts as 
one signature on the petition. 
    (c) Paragraph (a) does not apply to a petition for an 
improvement of an outlet. 
    Subd. 3.  [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.  
    Subd. 4.  [FILING PETITION AND BOND.] A petition for a 
drainage project 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 project passes over. 
    Subd. 5.  [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 or a 
petition for a drainage project affecting a joint county 
drainage system, the bond must be payable to all of the counties 
named in the petition.  The bond must have adequate surety and 
be approved by the county attorney where the petition is filed.  
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.  
    Subd. 6.  [EXPENSES NOT TO EXCEED BOND.] The costs incurred 
before the proposed drainage project 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 project 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 must be dismissed.  [106A.202] 
    Sec. 28.  [103E.212] [NEW DRAINAGE SYSTEM PROJECTS.] 
    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 projects. 
    Subd. 2.  [SIGNATURES ON PETITION.] The petition for a new 
drainage system must be signed by a majority of the 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 new drainage system passes 
over.  
    Subd. 3.  [PETITION REQUIREMENTS.] The petition must: 
    (1) describe the 40-acre tracts or government lots and 
property where the proposed new drainage system passes over, 
including names and addresses of the property owners from 
records in the county assessor's office; 
    (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. 
[106A.212] 
    Sec. 29.  [103E.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) A petition must be signed by: 
    (1) at least 26 percent of the owners of the property 
affected by the proposed improvement; 
    (2) at least 26 percent of the 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 would 
be located on. 
    (c) 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) describe the improvement, including the names and 
addresses of owners of the 40-acre tracts or government lots and 
property that the improvement passes over; 
    (5) state that the proposed improvement will be of public 
utility and promote the public health; and 
    (6) 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 27 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 be conducted under this chapter as provided for 
the original proceedings for the establishment of a drainage 
project.  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 97; 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.  [106A.215] 
    Sec. 30.  [103E.221] [IMPROVEMENT OF OUTLETS.] 
    Subdivision 1.  [CONDITIONS FOR IMPROVEMENT OF OUTLETS.] If 
a public or private proposed drainage project 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 project 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 
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 including the names and addresses of the property 
owners from records in the county assessor's office; 
    (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 construction 
of the outlet improvement is not awarded.  
    (b) The petitioners, except for a petition made by the 
board, shall give the required bond. 
    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 of the county with the greatest affected area.  
    Subd. 4.  [JURISDICTION OF DRAINAGE AUTHORITY.] 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 
project under this chapter.  
    Subd. 5.  [PRELIMINARY SURVEY REPORT REQUIREMENTS.] In the 
preliminary survey report, the engineer shall show the existing 
or proposed drainage projects or systems that cause the 
overflow, the property drained or to be drained by the drainage 
project, 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 are 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 drainage system and proposed drainage project.  
[106A.221] 
    Sec. 31.  [103E.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 owners of the property or by the owners of at least 26 
percent of the area of the property that the lateral passes 
over.  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 to 
be passed over 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 
including the names and addresses of the property owners from 
records in the county assessor's office; 
    (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 
27, subdivision 5. 
    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 
drainage project.  
    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 drainage system until express 
authority for the use of the existing drainage system as an 
outlet for the lateral has been obtained under section 60.  
[106A.225] 
     Sec. 32.  [103E.227] [IMPOUNDING AND DIVERSION OF DRAINAGE 
SYSTEM WATERS.] 
    Subdivision 1.  [PETITION.] (a) To conserve and make more 
adequate use of our water resources, a person, public or 
municipal corporation, governmental subdivision, the state or a 
department or agency of the state, the commissioner of natural 
resources, and the United States or any of its agencies, may 
petition for the installation of dams or other control works in 
drainage ditch systems to impound or divert waters for 
beneficial use.  The petition must be directed to the drainage 
authority where the drainage system is located. 
    (b) The petition must 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. 
    (c) The petitioner shall agree to be responsible for the 
cost of installation and construction of the structure. [105.81] 
    (d) The petition must also be accompanied by a public 
waters work permit or a water use permit from the commissioner 
of natural resources if required under chapter 103G.  [105.81] 
    Subd. 2.  [BOND.] (a) Upon filing the petition, the 
petitioners shall file a bond as provided in section 27.  
    (b) A bond is not required if the petition is filed by the 
state, a state agency or department, the commissioner of natural 
resources, the United States or any of its agencies, or a 
municipality.  [105.81] 
    Subd. 3.  [PROCEDURE TO ESTABLISH PROJECT.] (a) After 
receiving the petition, bond, and permit, if required, the 
drainage authority must appoint an engineer to investigate the 
effect of the proposed installation and file a report of 
findings.  
    (b) After filing of the engineer's report, notice must be 
given and a public hearing held as provided in section 40. 
    (c) If from the hearing it appears from the engineer's 
report and other evidence presented that the 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 its 
benefit, the drainage authority shall make an order modifying 
the drainage system and issue a permit authorizing its 
installation.  [105.81] 
    Subd. 4.  [FLOWAGE EASEMENTS REQUIRED.] Before installing 
or constructing an impoundment or diversion, the petitioner 
shall obtain rights-of-way and flowage easements from owners of 
land to be affected by it.  [105.81] 
    Subd. 5.  [ASSESSMENT OF MAINTENANCE AND REPAIR COSTS.] The 
order of the drainage authority modifying the drainage system 
must provide that construction and later maintenance and repairs 
of the drainage system modification and installation must be 
done by the petitioner without assessment of the cost to the 
property owners previously within the drainage system.  [105.81] 
    Sec. 33.  [103E.231] [DISMISSAL OR DELAY OF PROCEEDINGS BY 
PETITIONERS.] 
    Subdivision 1.  [DISMISSAL.] (a) 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.  
    (b) The proceeding may be dismissed at any time before the 
proposed drainage project is established after payment of the 
cost of the proceeding.  If the costs cannot be collected, each 
and all petitioners are liable for unpaid assessments.  The 
drainage authority shall determine and assess the cost of the 
proceeding against the persons liable.  After the proceeding is 
dismissed any other action on the proposed drainage project must 
begin with a new petition.  
    Subd. 2.  [DELAY.] The drainage authority may delay 
drainage proceedings and drainage project construction under 
this chapter if a majority of the petitioners petition for a 
delay and the drainage authority holds a hearing on the 
petition.  The delay may be for a period determined by the 
drainage authority.  The drainage authority shall determine the 
cost of the proceedings up to the time the proceedings are 
delayed and when the costs are to be paid.  The costs may 
include interest on the costs due.  [106A.231] 
    Sec. 34.  [103E.235] [DRAINAGE SYSTEM IN TWO OR MORE 
COUNTIES.] 
    Subdivision 1.  [DESIGNATION.] A petition for a proposed 
drainage project 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 project 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 project or 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 chapter 103D.  [106A.235] 
    Sec. 35.  [103E.238] [COUNTY ATTORNEY REVIEW OF PETITION 
AND BOND.] 
    The county attorney must review each petition and bond 
filed with the county to determine if it meets the requirement 
of the proceedings for which it is intended.  The county 
attorney must review the petition and bond within 30 days after 
it is filed.  The county attorney must: 
    (1) refer the petition and bond back to the petitioners if 
it does not meet the requirements, with the county attorney's 
opinion describing the deficiencies of the petition; or 
    (2) refer the petition to the drainage authority.  
[106A.238] 

                      PRELIMINARY SURVEY AND HEARING
    Sec. 36.  [103E.241] [ENGINEER.] 
    Subdivision 1.  [APPOINTMENT.] Within 30 days after 
receiving a petition and bond from the county attorney, the 
drainage authority shall, by order, appoint an engineer to make 
a preliminary survey within a prescribed time.  The engineer 
must be the county highway engineer of a county where the 
affected property is located or a professional engineer 
registered under state law.  The engineer is the engineer for 
the drainage project 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 
project 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 86. 
    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 project 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 
project.  The drainage authority shall determine the 
compensation for the consulting engineer.  [106A.241] 
    Sec. 37.  [103E.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 project to enable the engineer 
to determine whether the proposed drainage project 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 project substantially affects 
areas that are public waters; and 
    (4) if the proposed drainage project 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 of the water.  The preliminary survey must consider 
the impact of the proposed drainage project 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 project 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 project 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 project 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 drainage project showing 
the proposed ditches, tile, laterals, and other improvements, 
the outlet of the project, the watershed of the drainage project 
or 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 practicability, necessity, and feasibility of the proposed 
drainage project; 
    (6) consideration of the drainage project under the 
environmental and land use criteria in section 3, subdivision 1; 
and 
    (7) other information as ordered by the drainage authority. 
[106A.245] 
    Sec. 38.  [103E.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 project involves a joint county drainage project or 
system, a copy of the report must be filed with the auditor of 
each affected county.  [106A.251] 
    Sec. 39.  [103E.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 
relating to public waters that may be affected and environmental 
and land use criteria in section 3, subdivision 1, and cite 
specific portions of the preliminary survey report that are 
determined 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.  
[106A.255] 
    Sec. 40.  [103E.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 project 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 until a specified 
date by which the petitioners must resubmit the petition.  The 
petition must be referred back to the petitioners who, by 
unanimous action, may amend the petition.  The petitioners may 
obtain signatures of additional property owners as added 
petitioners. 
    (c) When the hearing is reconvened, if the petition is not 
resubmitted or 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 project 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 
project feasible and acceptable; 
    (3) the proposed drainage project 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 project 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 project 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 project outlined in the petition, 
or modified and recommended by the engineer, is feasible; 
    (2) there is necessity for the proposed drainage project; 
    (3) the proposed drainage project 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 project 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 project 
and proceed under section 60 to act in behalf of the proposed 
drainage project. 
    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 project.  All 
questions related to the practicability and necessity of the 
proposed drainage project are subject to additional 
investigation and consideration at the final hearing.  
[106A.261] 

                       DETAILED SURVEY AND VIEWING
    Sec. 41.  [103E.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 project and submit a 
detailed survey report to the drainage authority as soon as 
possible.  
    Subd. 2.  [WAIVER.] The drainage authority may waive the 
detailed survey order and the detailed survey if it determines 
that adequate data, plans, and specifications have been 
furnished by a United States engineer.  [106A.265] 
    Sec. 42.  [103E.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 project 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.  [106A.271] 
    Sec. 43.  [103E.275] [ENGINEER'S VARIANCE FROM DRAINAGE 
AUTHORITY ORDER.] 
    (a) In planning a proposed drainage project, 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 project. 
    (b) The engineer may:  
    (1) survey and recommend the location of additional 
necessary ditches and tile; 
    (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. 
[106A.275] 
    Sec. 44.  [103E.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 project 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.  
[106A.281] 
    Sec. 45.  [103E.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 
project and 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 project and the 
subwatershed 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; 
    (7) other physical characteristics of the watershed 
necessary to understand the proposed drainage project and the 
affected drainage system; and 
    (8) the area to be acquired to maintain a grass strip under 
section 4. 
    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 project and plans for other works to be 
constructed for the proposed drainage project 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 project.  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 drainage project; 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 project 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.  The ditch right-of-way must include the area to be 
taken to maintain a grass strip under section 4.  
    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 
44, the report on the soil survey must be included in the 
detailed survey report or submitted and filed separately before 
the final hearing.  
    Subd. 9.  [RECOMMENDATION FOR DIVISION OF WORK.] If 
construction of the proposed drainage project 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 
project 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 PROJECT.] Other data and information to 
inform the drainage authority of the practicability and 
necessity of the proposed drainage project 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.  [106A.285] 
    Sec. 46.  [103E.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.  [106A.291] 
    Sec. 47.  [103E.295] [REVISION OF ENGINEER'S DETAILED 
SURVEY REPORT AFTER ACCEPTANCE.] 
    After the final acceptance of the proposed drainage 
project, the engineer shall revise the plan, profiles, and 
designs of structures to show the drainage 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.  [106A.295] 
    Sec. 48.  [103E.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 project 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.  
[106A.301] 
    Sec. 49.  [103E.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 residents of 
the state qualified to assess benefits and damages.  The 
drainage authority may establish qualifications for viewers. 
    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.  
[106A.305] 
    Sec. 50.  [103E.311] [VIEWERS' DUTIES.] 
    The viewers, with or without the engineer, shall determine 
the benefits and damages to all property affected by the 
proposed drainage project and make a viewers' report.  
[106A.311] 
    Sec. 51.  [103E.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 5. 
    Subd. 2.  [GOVERNMENT PROPERTY.] The viewers shall report 
the benefits and damages to the state, counties, and 
municipalities from the proposed drainage project.  The property 
within the jurisdiction of a municipality, whether owned by the 
municipality or by private parties, may be assessed as benefits 
and damages to the municipality.  
    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 68.  
    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 AND BASIS OF BENEFITS.] (a) The viewers 
shall determine the amount of benefits to all property within 
the watershed, whether the property is benefited immediately by 
the construction of the proposed drainage project or the 
proposed drainage project can become an outlet for drainage, 
makes an outlet more accessible, or otherwise directly benefits 
the property.  The benefits may be based on:  
    (1) an increase in the current market value of property as 
a result of constructing the project; 
    (2) an increase in the potential for agricultural 
production as a result of constructing the project; or 
    (3) an increased value of the property as a result of a 
potential different land use. 
    (b) Benefits and damages may be assessed only against the 
property benefited or damaged or an easement interest in 
property for the exclusive use of the surface of the property. 
    Subd. 6.  [BENEFITS FOR PROPOSED DRAINAGE PROJECT AS 
OUTLET.] (a) If the proposed drainage project 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 project 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 prorated on all 
property benefited by the existing drainage system in proportion 
to the benefits determined for the existing drainage system.  
    (c) Within the watershed that drains to the area where a 
project is located, the viewers may assess outlet benefits on: 
    (1) property that is responsible for increased 
sedimentation in downstream areas of the watershed; and 
    (2) property that is responsible for increased drainage 
system maintenance or increased drainage system capacity because 
the natural drainage on the property has been altered or 
modified to accelerate the drainage of water from the property.  
    Subd. 7.  [BENEFITS FOR PROJECT THAT INCREASES DRAINAGE 
CAPACITY.] If part of a drainage project increases drainage 
capacity and the increased capacity is necessary due to 
increased drainage in the project watershed rather than 
increased drainage in a specific area, the viewers may assess 
benefits on property in the project watershed on a pro rata 
basis.  
    Subd. 8.  [EXTENT OF DAMAGES.] Damages to be paid may 
include: 
    (1) the fair market value of the property required for the 
channel of an open ditch and the permanent grass strip under 
section 4; 
    (2) the diminished value of a farm due to severing a field 
by an open ditch; 
    (3) loss of crop production during drainage project 
construction; and 
    (4) the diminished productivity or land value from 
increased overflow.  [106A.315] 
    Sec. 52.  [103E.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 and their addresses; 
    (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 public waters; 
    (5) the damage, if any, to riparian rights; 
    (6) the damages paid for the permanent grass strip under 
section 4; 
    (7) the total number and value of acres added to a tract or 
lot by the proposed drainage of public waters, wetlands, and 
other areas not currently being cultivated; 
    (8) the number of acres and amount of benefits being 
assessed for drainage of areas which before the drainage 
benefits could be realized would require a public waters work 
permit to work in public waters under article 7, section 22, to 
excavate or fill a navigable water body under United States 
Code, title 33, section 403, or a permit to discharge into 
waters of the United States under United States Code, title 33, 
section 1344; 
    (9) the number of acres and amount of benefits being 
assessed for drainage of areas that would be considered 
conversion of a wetland under United States Code, title 16, 
section 3821, if the area was placed in agricultural production; 
    (10) the amount of right-of-way acreage required; and 
    (11) the amount that each tract or lot will be benefited or 
damaged.  [106A.321 s. 1] 
    Subd. 2.  [BENEFITS AND DAMAGES STATEMENT.] (a) The 
viewers' report must include a benefits and damages statement 
that shows for each property owner how the benefits or damages 
for similar tracts or lots were determined.  For similar tracts 
or lots the report must describe: 
    (1) the existing land use, property value, and economic 
productivity; 
    (2) the potential land use, property value, and economic 
productivity after the drainage project is constructed; and 
    (3) the benefits or damages from the proposed drainage 
project.  
    (b) The soil and water conservation districts and county 
assessors shall cooperate with viewers to provide information 
required under paragraph (a).  [106A.321 s. 1a] 
    Subd. 3.  [DISAGREEMENT OF VIEWERS.] If the viewers are 
unable to agree, each viewer shall separately state findings on 
the disputed issue.  A majority of the viewers may perform the 
required duties under this chapter.  [106A.321 s. 2] 
    Subd. 4.  [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.  [106A.321 s. 3] 
    Sec. 53.  [103E.323] [PROPERTY OWNERS' REPORT.] 
    Subdivision 1.  [REPORT.] Within 30 days after the viewers' 
report is filed, the auditor must make a property owners' report 
from the information in the viewers' report showing for each 
property owner benefited or damaged by the proposed drainage 
project: 
    (1) the name and address of the property owner; 
    (2) each lot or tract and its area that is benefited or 
damaged; 
    (3) the total number and value of acres added to a tract or 
lot by the proposed drainage of public waters, wetlands, and 
other areas not currently being cultivated; 
    (4) the number of acres and amount of benefits being 
assessed for drainage of areas which before the drainage 
benefits could be realized would require a public waters work 
permit to work in public waters under article 7, section 22, to 
excavate or fill a navigable water body under United States 
Code, title 33, section 403, or a permit to discharge into 
waters of the United States under United States Code, title 33, 
section 1344; 
    (5) the number of acres and amount of benefits being 
assessed for drainage of areas that would be considered 
conversion of a wetland under United States Code, title 16, 
section 3821, if the area was placed in agricultural production; 
    (6) the damage, if any, to riparian rights; 
    (7) the amount of right-of-way acreage required; 
    (8) the amount that each tract or lot will be benefited or 
damaged; 
    (9) the net damages or benefits to each property owner; 
    (10) the estimated cost to be assessed to the property 
owner based on the cost of the drainage project in the 
engineer's detailed survey report; and 
    (11) a copy of the benefits and damages statement under 
section 52, subdivision 2, paragraph (a), relating to the 
property owner. 
    Subd. 2.  [MAILING.] The auditor must mail a copy of the 
property owners' report to each owner of property affected by 
the proposed drainage project, and may prepare and file an 
affidavit of mailing.  [106A.323] 

                              FINAL HEARING
    Sec. 54.  [103E.325] [FINAL HEARING NOTICE.] 
    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 project 
and affected 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 project 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 project 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 project 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.  
[106A.325] 
    Sec. 55.  [103E.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.  [106A.331] 
    Sec. 56.  [103E.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 project, 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 project 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.  [106A.335] 
    Sec. 57.  [103E.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 project are less 
than the total cost, including damages awarded; 
    (2) the proposed drainage project will not be of public 
benefit and utility; or 
    (3) the proposed drainage project is not practicable after 
considering the environmental and land use criteria in section 
3, subdivision 1.  
    Subd. 2.  [ESTABLISHMENT OF PROPOSED DRAINAGE PROJECT.] (a) 
The drainage authority shall establish, by order, a proposed 
drainage project 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 project will be of public utility 
and benefit, and will promote the public health; and 
    (6) the proposed drainage project 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 project as reported 
and amended.  [106A.341] 
    Sec. 58.  [103E.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 project is made, the 
drainage authority shall determine and order the percentage of 
the cost of the drainage project 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.  [106A.345] 

                       REDETERMINATION OF BENEFITS
    Sec. 59.  [103E.351] [REDETERMINATION OF BENEFITS AND 
DAMAGES.] 
    Subdivision 1.  [CONDITIONS TO REDETERMINE BENEFITS AND 
DAMAGES; APPOINTMENT OF VIEWERS.] If the drainage authority 
determines that the original benefits or damages determined in a 
drainage proceeding do not reflect reasonable present day land 
values or that the benefited or damaged areas have changed, or 
if more than 50 percent of the owners of property benefited or 
damaged 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 damages and 
the benefited and damaged areas.  
    Subd. 2.  [HEARING AND PROCEDURE.] (a) The redetermination 
of benefits and damages shall proceed as provided for viewers 
and the viewers' report in sections 50 to 52.  
    (b) The auditor must prepare a property owners' report from 
the viewers' report.  A copy of the property owners' report must 
be mailed to each owner of property affected by the drainage 
system.  
    (c) The drainage authority shall hold a final hearing on 
the report and confirm the benefits and damages and benefited 
and damaged areas.  The final hearing shall proceed as provided 
under sections 54, 56, and 57, except that the hearing shall be 
held within 30 days after the property owners' report is mailed. 
    Subd. 3.  [REDETERMINED BENEFITS AND DAMAGES REPLACE 
ORIGINAL BENEFITS AND DAMAGES.] The redetermined benefits and 
damages and benefited and damaged areas must be used in place of 
the original benefits and damages and benefited and damaged 
areas in all subsequent proceedings relating to the drainage 
system.  
    Subd. 4.  [APPEAL.] A person aggrieved by the 
redetermination of benefits and damages and benefited and 
damaged areas may appeal from the order confirming the benefits 
and damages and benefited and damaged areas under section 19.  
[106A.351] 

                       OUTLETS FOR DRAINAGE SYSTEMS
    Sec. 60.  [103E.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 97A.145, 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 project, 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 having 
jurisdiction over 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 the petitioner's 
property is located.  
    Subd. 6.  [PAYMENT OF OUTLET FEE.] The outlet fee for a 
proposed drainage project is a part of the cost of the proposed 
drainage project and is to be paid by assessment against the 
property benefited by the proposed drainage project, under 
section 77, and credited to the established drainage system 
account. 
    Subd. 7.  [UNAUTHORIZED OUTLET INTO DRAINAGE SYSTEM.] (a) 
The drainage authority must notify an owner of property where an 
unauthorized outlet into a drainage system is located and direct 
the property owner to block the outlet or otherwise make the 
outlet ineffective by a specified time.  The outlet must be 
blocked and remain ineffective until: 
    (1) an outlet fee is paid, which is determined by the 
drainage authority based on the benefits received by the 
property for the period the unauthorized outlet was operational; 
and 
    (2) the drainage authority approves a petition for the 
outlet and establishes the outlet fee.  
    (b) If a property owner does not block or make the outlet 
ineffective after being notified, the drainage authority must 
issue an order to have the work performed to bring the outlet 
into compliance.  After the work is completed, the drainage 
authority must send a statement to the auditor of the county 
where the property is located and to the property owner where 
the unauthorized outlet is located, containing the expenses 
incurred to bring the outlet into compliance and the outlet fee 
based on the benefits received by the property during the period 
the unauthorized outlet was operational.  
    Subd. 8.  [COLLECTION OF UNAUTHORIZED OUTLET COMPLIANCE 
EXPENSES.] (a) The amount of the expenses and outlet fee is a 
lien in favor of the drainage authority against the property 
where the unauthorized outlet is located.  The auditor must 
certify the expenses and outlet fee and enter the amount in the 
same manner as other drainage liens on the tax list for the 
following year.  The amount must be collected in the same manner 
as real estate taxes for the property.  The provisions of law 
relating to the collection of real estate taxes shall be used to 
enforce payment of amounts due under this section.  The auditor 
must include a notice of collection of unauthorized outlet 
compliance expenses with the tax statement.  
    (b) The amounts collected under this subdivision must be 
deposited in the drainage system account.  [106A.401] 
    Sec. 61.  [103E.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 
project may not be made until the option is procured.  If the 
option is procured and the drainage project 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 project.  
[106A.405] 
    Sec. 62.  [103E.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 system 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 project 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 project or 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.  
[106A.411] 

                     CONSTRUCTION OF DRAINAGE PROJECT
    Sec. 63.  [103E.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 the affected 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 project or 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 project, 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 project 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 project is constructed, if the 
modification is recommended, in writing, by the engineer and 
approved by the drainage authority.  [106A.501] 
    Sec. 64.  [103E.505] [AWARDING THE CONSTRUCTION CONTRACT.] 
    Subdivision 1.  [AUDITORS AND DRAINAGE AUTHORITY TO 
PROCEED.] Thirty days after the order establishing a drainage 
project is filed, the auditor and the drainage authority or, for 
a joint county drainage project, a majority of the auditors of 
the affected counties shall proceed to award the contract to 
construct the drainage project.  
    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 
project 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 project 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 newspaper.  The trade newspaper 
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 63; 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 the 
bidder's 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 130 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 
chair of the drainage authority and the auditor of each affected 
county shall contract, in the names of their respective 
counties, to construct the drainage project 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 project 
and system, for control of waters in the district, or for making 
a survey and investigation or reports on the drainage project or 
system.  The municipalities may provide required guaranty and 
protection to the United States or its agencies.  [106A.505] 
    Sec. 65.  [103E.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 project may 
petition the drainage authority if the person determines that 
the engineer made an error in the estimate of the drainage 
project cost or that the plans and specifications could be 
changed in a manner materially affecting the cost of the 
drainage system without interfering with 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 project 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 project 
without interfering with 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 19, subdivision 1.  
[106A.511] 
    Sec. 66.  [103E.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 project.  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 
court administrator of the district court of the county.  The 
court shall direct the court administrator, by order, to pay the 
parties entitled to the damages.  [106A.515] 
    Sec. 67.  [103E.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.  [106A.521] 
    Sec. 68.  [103E.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 project or 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; CHARGING 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 their jurisdiction, 
within a reasonable time as stated 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 project 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 project 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.  [106A.525] 
    Sec. 69.  [103E.526] [CONSTRUCTION OF ROAD INSTEAD OF 
BRIDGE OR CULVERT.] 
    If the drainage authority finds that constructing a private 
road would be more cost effective or practical than constructing 
a bridge or culvert, the drainage authority may order that a 
private road be constructed.  The private road must be 
constructed and maintained in the same manner as a bridge or 
culvert.  The private road must be constructed in a manner 
suitable for farm vehicles, but may not have a right-of-way 
wider than 33 feet.  The drainage authority has jurisdiction 
over the land required for the private road and the road is part 
of the drainage system.  [106A.526] 
    Sec. 70.  [103E.53] [RULES TO STANDARDIZE FORMS.] 
    The director may adopt rules to standardize the forms and 
sizes of maps, plats, drawings, and specifications in drainage 
proceedings.  The director must require the permanent grass 
strips acquired under section 4 to be shown on the maps and 
maintain an inventory of all permanent grass strips acquired by 
drainage authorities.  [105.40 s. 11] 
    Sec. 71.  [103E.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.  [106A.531] 
    Sec. 72.  [103E.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.  [106A.535] 
    Sec. 73.  [103E.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 project, 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.  [106A.541] 
    Sec. 74.  [103E.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 value of the certified work; 
    (3) the amount of money received by the contractor and the 
amount retained by the drainage authority; 
    (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 OF 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 publishing the hearing notice.  
    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.  [106A.545] 
    Sec. 75.  [103E.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. 
[106A.551] 
    Sec. 76.  [103E.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 
project or 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.  [106A.555] 

        FUNDING, COLLECTION, AND PAYMENT OF DRAINAGE SYSTEM COSTS
    Sec. 77.  [103E.601] [DRAINAGE LIEN STATEMENT.] 
    Subdivision 1.  [DETERMINATION OF PROPERTY LIABILITY.] When 
the contract for the construction of a drainage project is 
awarded, the auditor of an affected county shall make a 
statement showing the total cost of the drainage project 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 
project.  The property liability must be shown in the tabular 
statement as provided in 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 project 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 project 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 project 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 to the county for the establishment and 
construction of the drainage project.  
    Subd. 3.  [SUPPLEMENTAL DRAINAGE LIEN STATEMENT.] If any 
items of the cost of the drainage project 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 lien 
against property in the drainage lien statement and supplemental 
drainage lien statements must be certified by the auditor and 
recorded on each tract by the county recorder of the county 
where the tract is located.  The county recorder's fees for 
recording must be paid if allowed by the board.  The drainage 
lien statement and any supplemental drainage lien statements, 
after recording, must be returned and preserved by the auditor.  
[106A.601] 
    Sec. 78.  [103E.605] [EFFECT OF FILED DRAINAGE LIEN.] 
    The amount recorded from 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 liens of record.  The 
recording of the drainage lien, drainage lien statement, or a 
supplemental drainage lien statement is notice to all parties of 
the existence of the drainage lien.  [106A.605] 
    Sec. 79.  [103E.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 from the date the drainage lien 
statement is recorded must be set by the board, but may not 
exceed the rate determined by the state court administrator for 
judgments under section 549.09.  
    (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.  
    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 project and 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 the rate determined by the state court 
administrator for judgments under section 549.09.  [106A.611] 
    Sec. 80.  [103E.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 79.  If the 
installments and interest are not paid on or before November 1, 
the amount due with interest added as provided in section 79 
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 project 
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 game and 
fish fund as provided in section 97A.071, subdivision 4.  
    Subd. 7.  [RAILROAD AND UTILITY PROPERTY.] Property owned 
by a railroad or other utility corporation benefited by a 
drainage project 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.  [106A.615] 
    Sec. 81.  [103E.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.  [106A.621] 
    Sec. 82.  [103E.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 is filed with the county recorder of the 
county where the tract is located.  [106A.625] 
    Sec. 83.  [103E.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 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.  [106A.631] 
    Sec. 84.  [103E.635] [DRAINAGE BOND ISSUES.] 
    Subdivision 1.  [AUTHORITY.] After the contract for the 
construction of a drainage project 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 project.  
    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 to 
exceed 23 years from their date of issue; 
    (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 the rate established under section 475.55; and 
    (3) whether the drainage bonds are payable annually or 
semiannually.  
    (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 as provided 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 
established under section 475.55 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 when the county notifies the definitive bondholders 
who have registered their names and addresses 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 in 
accordance with section 475.60. 
    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 project 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.  [106A.635] 
    Sec. 85.  [103E.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 84 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.  
[106A.641] 
    Sec. 86.  [103E.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 project or system in one county must 
be audited, allowed, and paid by order of the board or for a 
drainage project or 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.  
[106A.645] 
    Sec. 87.  [103E.651] [DRAINAGE SYSTEM ACCOUNT.] 
    Subdivision 1.  [FUNDS FOR DRAINAGE SYSTEM COSTS.] The 
board shall provide funds to pay the costs of drainage projects 
and 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 general revenue 
fund of the county.  [106A.651] 
    Sec. 88.  [103E.655] [PAYMENT OF DRAINAGE SYSTEM COSTS.] 
    Subdivision 1.  [PAYMENT MADE FROM DRAINAGE SYSTEM 
ACCOUNT.] The costs for a drainage project 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 treasurer's signature.  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.  [106A.655] 
    Sec. 89.  [103E.661] [EXAMINATION AND ESTABLISHMENT OF 
DRAINAGE SYSTEM ACCOUNTS BY STATE AUDITOR.] 
    Subdivision 1.  [STATE AUDITOR MUST EXAMINE 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.  
     Subd. 2.  [ESTABLISHMENT OF ACCOUNTS.] The auditor must 
establish a system of accounts for each drainage system applied 
for in the county.  
    Subd. 3.  [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 general fund.  The county 
auditor shall apportion the expenses among the drainage systems 
in the county.  [106A.661] 

                   PROCEDURE TO REPAIR DRAINAGE SYSTEMS
    Sec. 90.  [103E.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 
originally constructed and subsequently improved, including 
resloping of ditches and leveling of waste banks if necessary to 
prevent further deterioration, realignment to original 
construction if necessary to restore the effectiveness of the 
drainage system, and routine operations that may be required to 
remove obstructions and maintain the efficiency of the drainage 
system.  [106A.701 s. 1] 
    Subd. 2.  [REPAIRS AFFECTING PUBLIC WATERS.] Before a 
repair is ordered, the drainage authority must notify the 
commissioner if the repair may affect public waters.  If the 
commissioner disagrees with the repair depth, the engineer, a 
representative appointed by the director, and a soil and water 
conservation district technician must jointly determine the 
repair depth using soil borings, field surveys, and other 
available data or appropriate methods.  Costs for determining 
the repair depth beyond the initial meeting must be shared 
equally by the drainage system and the commissioner.  The 
determined repair depth must be recommended to the drainage 
authority.  The drainage authority may accept the joint 
recommendation and proceed with the repair.  [106A.701 s. 1a] 
    Subd. 3.  [REPAIR OF TOWN DITCHES.] The town board has the 
power of a drainage authority to repair a town drainage system 
located within the town.  [106A.701 s. 2] 
    Subd. 4.  [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 68. 
    (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 59, 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.  [106A.701 s. 3] 
    Subd. 5.  [CONSTRUCTION OF ROAD INSTEAD OF BRIDGE OR 
CULVERT.] In a repair proceeding under sections 90 to 100, if 
the drainage authority finds that constructing a private road is 
more cost-effective or practical than constructing a bridge or 
culvert, a drainage authority may order a private road to be 
constructed under section 69, instead of a bridge or culvert.  
[106A.701 s. 4] 
    Sec. 91.  [103E.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 
including grass strips under section 4 and provide the repairs 
necessary to make the drainage system efficient.  The drainage 
authority shall have the drainage system inspected on a regular 
basis by an inspection committee of the drainage authority or a 
drainage inspector appointed by the drainage authority.  
[106A.705 s. 1] 
    Subd. 2.  [GRASS STRIP INSPECTION AND COMPLIANCE NOTICE.] 
(a) The drainage authority having jurisdiction over a drainage 
system must inspect the drainage system for violations of 
section 4.  If an inspection committee of the drainage authority 
or a drainage inspector determines that permanent grass strips 
are not being maintained in compliance with section 4, a 
compliance notice must be sent to the property owner. 
    (b) The notice must state:  
    (1) the date the ditch was inspected; 
    (2) the persons making the inspection; 
    (3) that spoil banks are to be spread in a manner 
consistent with the plan and function of the drainage system and 
the drainage system has acquired a grass strip 16-1/2 feet in 
width or to the crown of the spoil bank, whichever is greater; 
    (4) the violations of section 4; 
    (5) the measures that must be taken by the property owner 
to comply with section 4 and the date when the property must be 
in compliance; and 
    (6) that if the property owner does not comply by the date 
specified, the drainage authority will perform the work 
necessary to bring the area into compliance with section 4 and 
charge the cost of the work to the property owner.  
    (c) If a property owner does not bring an area into 
compliance with section 4 as provided in the compliance notice, 
the inspection committee or drainage inspector must notify the 
drainage authority.  
    (d) This subdivision applies to property acquired under 
section 4.  [106A.705 s. 1a] 
    Subd. 3.  [DRAINAGE INSPECTION 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 or maintenance of grass strips and the location and 
nature of the repair or maintenance.  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.  The grass strips must be maintained in compliance 
with section 4.  [106A.705 s. 2] 
    Subd. 4.  [INSPECTION REPORT TO DRAINAGE AUTHORITY.] If the 
inspection committee or drainage inspector reports, in writing, 
to the drainage authority that maintenance of grass strips or 
repairs are necessary on a drainage system and the report is 
approved by the drainage authority, the maintenance or repairs 
must be made under this section.  [106A.705 s. 3] 
    Subd. 5.  [REPAIRS LESS THAN $50,000.] If the drainage 
authority finds that the estimated cost of repairs and 
maintenance of one drainage system for one year will be less 
than the greater of $50,000 or $1,000 per mile of open ditch in 
the ditch system, 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.  [106A.705 s. 4] 
    Subd. 6.  [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, $1,000 per mile of open ditch in the ditch system, or 
$50,000, whichever is greater, except for a repair made after a 
disaster as provided under subdivision 7 or under the petition 
procedure.  [106A.705 s. 5] 
    Subd. 7.  [REPAIR AND CONSTRUCTION AFTER DISASTER.] The 
drainage authority may repair and reconstruct the drainage 
system without advertising for bids and without regard to the 
$1,000 per mile of open ditch or $50,000 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.  [106A.705 s. 6] 
    Sec. 92.  [103E.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 system 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 
amount of 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 amount of 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.  [106A.711] 
    Sec. 93.  [103E.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'S 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 chair 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 described 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, INSTALLING EROSION CONTROL AND REMOVING TREES.] (a) For a 
drainage system that is to be repaired by resloping ditches, 
leveling waste banks, installing erosion control measures, or 
removing trees, before ordering the repair, the drainage 
authority must appoint viewers to assess and report on damages 
and benefits if it determines that: 
    (1) the resloping, leveling, installing erosion control 
measures or tree removal will require the taking of any property 
not contemplated and included in the original proceeding for the 
establishment of the drainage system; 
    (2) any waste bank leveling will directly benefit property 
where the bank leveling is specified; and 
    (3) the installation of erosion control measures will aid 
the long-term efficiency of the drainage system.  
    (b) The viewers shall assess and report damages and 
benefits as provided by sections 51 and 52.  The drainage 
authority shall hear and determine the damages and benefits as 
provided in sections 54, 56, and 57.  The hearing shall be held 
within 30 days after the property owners' report is mailed.  
Damages must be paid as provided by section 51 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.  [106A.715] 
    Sec. 94.  [103E.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 99 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 of 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 proposed 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 be assessed and collected from the 
political subdivision, railroad company, or other entity in the 
manner provided by section 97.  [106A.721] 
    Sec. 95.  [103E.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.  
[106A.725] 
    Sec. 96.  [103E.728] [APPORTIONMENT OF REPAIR COSTS.] 
    Subdivision 1.  [GENERALLY.] The cost of repairing a 
drainage system shall be apportioned pro rata on all property 
and entities that have been assessed benefits for the drainage 
system except as provided in this section. 
    Subd. 2.  [ADDITIONAL ASSESSMENT FOR AGRICULTURAL PRACTICES 
ON GRASS STRIP.] (a) The drainage authority may, after notice 
and hearing, charge an additional assessment on property that 
has agricultural practices on or otherwise violates provisions 
related to the permanent grass strip acquired under section 4.  
    (b) The drainage authority may determine the cost of the 
repair per mile of open ditch on the ditch system.  Property 
that is in violation of the grass requirement shall be assessed 
a cost of 20 percent of the repair cost per open ditch mile 
multiplied by the length of open ditch in miles on the property 
in violation. 
    (c) After the amount of the additional assessment is 
determined and applied to the repair cost, the balance of the 
repair cost may be apportioned pro rata as provided in 
subdivision 1. 
    Subd. 3.  [SOIL LOSS VIOLATIONS.] The drainage authority 
after notice and hearing may make special assessments on 
property that is in violation of a county soil loss ordinance.  
[106A.728] 
    Sec. 97.  [103E.731] [ASSESSMENT; BONDS.] 
    Subdivision 1.  [REPAIR COST OF ASSESSMENTS.] If there is 
not enough money in the drainage system account to make a 
repair, the board shall assess the costs of the repairs 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 77, and all the provisions of sections 78, 79, and 80 
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 84.  
    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.  
[106A.731] 
    Sec. 98.  [103E.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 97, subdivision 4, with the county 
recorder.  Assessments must be collected as provided in section 
97.  
    Subd. 2.  [TRANSFER OF DRAINAGE SYSTEM.] If a drainage 
system within the county has been taken over by a watershed 
district, 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.
[106A.735] 
    Sec. 99.  [103E.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 
49 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 51.  When the viewers' repair 
report is filed, the auditor shall give notice of a hearing as 
required by section 54 and the drainage authority has 
jurisdiction of each tract of property described in the viewers' 
report as provided in section 55.  
    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 19. 
    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.  
[106A.741] 
    Sec. 100.  [103E.745] [COST OF REPAIR EXCEEDING BENEFITS IN 
ANOKA COUNTY.] 
    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 29 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.
[106A.745] 

               CONSOLIDATION, DIVISION, AND ABANDONMENT OF 

                            DRAINAGE SYSTEMS
    Sec. 101.  [103E.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 59 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 102 or 103 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.  [106A.801] 
    Sec. 102.  [103E.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 be 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.  [106A.805] 
    Sec. 103.  [103E.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 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 an 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 court 
administrator.  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 court administrator with 
the approval of the court, shall set a time and location for a 
hearing on the petition.  The auditor or court administrator 
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 and 
a date must be set to reconvene.  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) When the hearing is reconvened, 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.  [106A.811] 

                               ARTICLE 6 

                              CHAPTER 103F 

                     PROTECTION OF WATER RESOURCES 

                           GENERAL PROVISIONS 
    Section 1.  [103F.001] [EFFECT OF CHAPTER 103F ON WATER 
LAW.] 
    Chapters 103A, 103B, 103C, 103D, 103E, 103F, and 103G 
constitute the water law of this state and may be cited as the 
water law.  

                         FLOODPLAIN MANAGEMENT 
    Sec. 2.  [103F.101] [CITATION.] 
    Sections 2 to 13 may be cited as the floodplain management 
law.  [104.01 s. 1] 
    Sec. 3.  [103F.105] [FLOODPLAIN MANAGEMENT POLICY.] 
    (a) The legislature finds: 
    (1) a large portion of the state's land resources is 
subject to recurrent flooding by overflow of streams and other 
watercourses causing loss of life and property, disruption of 
commerce and governmental services, unsanitary conditions, and 
interruption of transportation and communications, all of which 
are detrimental to the health, safety, welfare, and property of 
the occupants of flooded lands and the people of this state; and 
    (2) the public interest necessitates sound land use 
development as land is a limited and irreplaceable resource, and 
the floodplains of this state are a land resource to be 
developed in a manner which will result in minimum loss of life 
and threat to health, and reduction of private and public 
economic loss caused by flooding.  [104.01 s. 2] 
    (b) It is the policy of this state to reduce flood damages 
through floodplain management, stressing nonstructural measures 
such as floodplain zoning and floodproofing, and flood warning 
practices.  
    (c) It is the policy of this state: 
    (1) not to prohibit but to guide development of the 
floodplains consistent with legislative findings; 
    (2) to provide state coordination and assistance to local 
governmental units in floodplain management; 
     (3) to encourage local governmental units to adopt, enforce 
and administer sound floodplain management ordinances; and 
     (4) to provide the commissioner of natural resources with 
authority necessary to carry out a floodplain management program 
for the state and to coordinate federal, state, and local 
floodplain management activities in this state.  [104.01 s. 3] 
    Sec. 4.  [103F.111] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 4 to 15. 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  [104.02 s. 7] 
    Subd. 3.  [FLOOD FRINGE.] "Flood fringe" means the portion 
of the floodplain outside of the floodway.  [104.02 s. 5] 
    Subd. 4.  [FLOODPLAIN.] "Floodplain" means the areas 
adjoining a watercourse or water basin that have been or may be 
covered by a regional flood.  [104.02 s. 3] 
    Subd. 5.  [FLOODWAY.] "Floodway" means the channel of the 
watercourse, the bed of water basins, and those portions of the 
adjoining floodplains that are reasonably required to carry and 
discharge floodwater and provide water storage during a regional 
flood.  [104.02 s. 4] 
    Subd. 6.  [LOCAL GOVERNMENTAL UNIT.] "Local governmental 
unit" means a county, statutory or home rule charter city, town, 
watershed district, or lake improvement district.  [104.02 s. 6] 
    Subd. 7.  [MITIGATION.] "Mitigation" means the act of 
alleviating the effects of floods and flooding by moderating or 
reducing the severe damages resulting from floods through 
structural and nonstructural flood management measures.  [104.02 
s. 10] 
    Subd. 8.  [MITIGATION MEASURES.] "Mitigation measures" 
means structural or nonstructural flood management measures, or 
both.  [104.02 s. 11] 
    Subd. 9.  [NONSTRUCTURAL FLOOD MANAGEMENT MEASURES.] 
"Nonstructural flood management measures" means actions in 
floodplains designed to reduce the damaging effects of floods on 
existing and potential users of floodplains, without physically 
altering the flood behavior.  Nonstructural flood management 
measures include: 
    (1) public acquisition of floodplain lands; 
    (2) relocation of public and private structures and 
facilities; 
    (3) floodproofing of public and private facilities; 
    (4) installation and operation of flood warning systems and 
evacuation procedures; 
    (5) adoption and enforcement of land use control ordinances 
and building codes; 
    (6) installation of signs and other notifications in 
regional flood areas; and 
    (7) provision of flood insurance and public education.  
[104.02 s. 9] 
    Subd. 10.  [REGIONAL FLOOD.] "Regional flood" means a flood 
that is representative of large floods known to have occurred 
generally in the state and reasonably characteristic of what can 
be expected to occur on an average frequency in the magnitude of 
a 100-year recurrence interval.  [104.02 s. 2] 
    Subd. 11.  [STRUCTURAL FLOOD MANAGEMENT MEASURES.] 
"Structural flood management measures" means physical actions 
taken to modify the behavior and extent of floods and flooding, 
including the construction of dams, dikes, levees, flood bypass 
channels, floodwater storage and retardation structures, and 
water level control structures, excluding deepening or 
straightening of existing stream channels.  [104.02 s. 8] 
    Subd. 12.  [WATERBASIN.] "Waterbasin" has the meaning given 
it by article 7, section 2, subdivision 16.  [104.02 s. 12] 
    Sec. 5.  [103F.115] [PRIORITY FOR REDUCTION OF FLOOD 
DAMAGE.] 
    Floodplain management ordinances are to be given primary 
consideration in the reduction of flood damage in the state and 
alternative methods for reducing flood damage may not be carried 
out before adoption of floodplain management ordinances by local 
governmental units.  Structural projects which have the purpose 
of controlling floods are to be considered only as elements of a 
floodplain management program.  [104.01 s. 4] 
    Sec. 6.  [103F.121] [FLOODPLAIN MANAGEMENT ORDINANCES.] 
    Subdivision 1.  [ADOPTION.] (a) In accordance with sections 
2 to 13, the rules of the commissioner and applicable laws 
authorizing local governmental units to adopt floodplain 
management ordinances, local governmental units shall adopt, 
administer, and enforce floodplain management ordinances, which 
must include:  
    (1) the delineation of floodplains and floodways; 
    (2) the preservation of the capacity of the floodplain to 
carry and discharge regional floods; 
    (3) the minimization of flood hazards; and 
    (4) the regulation of the use of land in the floodplain. 
    (b) The ordinances shall be based on adequate technical 
data and competent engineering advice and shall be consistent 
with local and regional comprehensive planning.  [104.04 s. 1] 
    Subd. 2.  [ADOPTION PROCEDURE.] (a) The commissioner, upon 
determining that sufficient technical information is available 
for the delineation of floodplains and floodways on a 
watercourse, shall notify affected local governmental units that 
technical information is available.  Within six months after 
receiving this notice, the local governmental units shall 
prepare or amend their floodplain management ordinances in 
conformance with the provisions of sections 2 to 13 and shall 
submit the ordinance to the commissioner for review and approval 
before adoption.  
     (b) The commissioner shall approve or disapprove the 
proposed ordinance within 120 days after receiving it.  
     (c) If the proposed ordinance is disapproved, the 
commissioner shall return it to the local governmental unit with 
a written statement of reasons for disapproval.  Within 90 days 
after disapproval, the local governmental unit shall resubmit an 
amended proposed ordinance for further review and approval 
before adoption.  The local governmental unit shall adopt a 
floodplain management ordinance within 90 days after approval by 
the commissioner.  
    (d) A floodplain management ordinance adopted by a local 
governmental unit is invalid unless it is approved by the 
commissioner.  
    (e) A local governmental unit may adopt a floodplain 
management ordinance in the absence of notification by the 
commissioner that the required technical data is available, 
provided that any such ordinance is submitted to the 
commissioner prior to its adoption for approval.  
    (f) A local governmental unit may adopt a floodplain 
management ordinance that is more restrictive than required 
under sections 2 to 13.  [104.04 s. 3] 
    (g) Floodplain management ordinances may be amended by a 
local governmental unit upon the approval of the commissioner.  
[104.04 s. 4] 
    Subd. 3.  [COMMISSIONER'S ADOPTION OF ORDINANCE.] (a) If a 
local governmental unit fails to adopt a floodplain management 
ordinance, the commissioner shall adopt an ordinance that meets 
the minimum standards established under section 10 for the local 
governmental unit.  
    (b) The commissioner shall hold at least one public hearing 
on the proposed ordinance in the manner provided in section 
394.26 or 462.357, as applicable, after giving notice as 
provided in section 394.26 or 462.357.  
    (c) The ordinance is effective for the local governmental 
unit on the date and in accordance with rules prescribed by the 
commissioner. 
    (d) The ordinance shall be enforced as provided in section 
394.37 or 462.362, as applicable.  The penalties provided in 
section 394.37 or 462.362 apply to violations of an ordinance 
adopted by the commissioner.  [104.04 s. 5] 
    Subd. 4.  [COST OF COMMISSIONER'S ORDINANCE.] (a) The cost 
incurred by the commissioner in adopting a floodplain management 
ordinance for the local governmental unit shall be paid by the 
local governmental unit upon submission to the local 
governmental unit of an itemized statement of these costs by the 
commissioner.  
    (b) If the local governmental unit fails to pay the costs 
within 90 days after the commissioner's statement is received, 
the commissioner shall file a copy of the statement of the costs 
for collection by special tax levy with the county auditor of 
the county where the local governmental unit is located. The 
county auditor, upon receiving a statement from the 
commissioner, shall include the amount of the state's claim in 
the tax levy for general revenue purposes of the local 
governmental unit.  Upon completion of the tax settlement 
following this levy, the county treasurer shall remit the amount 
due to the state to the commissioner for deposit in the state 
treasury.  [104.04 s. 6] 
    Subd. 5.  [MAJOR ALTERATIONS AND HAZARDOUS USES 
PROHIBITED.] (a) If a floodplain has been delineated by a 
floodplain management ordinance under sections 2 to 13, a major 
alteration to a structure in existence on the effective date of 
the ordinance or a new fill, structure, deposit, or other 
floodplain use that is unreasonably hazardous to the public or 
that unduly restricts the capacity of the floodplain to carry 
and discharge a regional flood may not be permitted after the 
effective date of the ordinance delineating the floodplain.  
    (b) As used in this subdivision, major alterations of 
existing structures do not include repair or maintenance and do 
not include repairs, maintenance, or alterations to structures 
made under the authority of another authorized agency of the 
state or federal government.  
    (c) This subdivision does not apply to alterations, repair, 
or maintenance reasonably done under emergency circumstances to 
preserve or protect life or property.  
    (d) This subdivision applies to alterations to existing 
structures and to new fill, structures, deposits, or other 
floodplain uses by the state and state agencies.  [104.03 s. 2] 
    Sec. 7.  [103F.125] [CONSIDERATION OF INDUSTRIAL USES IN 
FLOODPLAIN.] 
    The commissioner in promulgating guidelines under section 
10 and local governmental units in preparing floodplain 
management ordinances shall give due consideration to the needs 
of an industry whose business requires that it be located within 
a floodplain.  [104.06] 
    Sec. 8.  [103F.131] [AMUSEMENT PARK EXEMPTION.] 
    (a) An amusement park that exists before a floodplain is 
delineated by a floodplain management ordinance is exempt from 
the requirements of sections 2 to 13 if the amusement park 
continues to be used as an amusement park within the amusement 
park boundaries.  
    (b) Notwithstanding any other law, the state is not liable 
for any damage from flooding to an amusement park operating in a 
floodplain under this subdivision.  [104.03 s. 2a] 
    Sec. 9.  [103F.135] [COMMISSIONER'S ASSISTANCE AND 
INSPECTIONS.] 
    Subdivision 1.  [COMMISSIONER'S DUTIES.] The commissioner 
shall:  
    (1) collect and distribute information relating to flooding 
and floodplain management; 
    (2) coordinate local, state, and federal floodplain 
management activities to the greatest extent possible, and 
encourage the United States army corps of engineers and the 
United States soil conservation service to make their flood 
control planning data available to local governmental units for 
planning purposes, to allow adequate local participation in the 
planning process and in the selection of desirable alternatives; 
    (3) assist local governmental units in their floodplain 
management activities in cooperation with the commissioner of 
trade and economic development; and 
    (4) do all other things, within lawful authority, that are 
necessary or desirable to manage the floodplain for beneficial 
uses compatible with the preservation of the capacity of the 
floodplain to carry and discharge the regional flood.  [104.03 
s. 1] 
    Subd. 2.  [INSPECTIONS.] In cooperation with local 
governmental units, the commissioner shall conduct, whenever 
possible, periodic inspections to determine the effectiveness of 
local floodplain management programs, including an evaluation of 
the enforcement of and compliance with local floodplain 
management ordinances.  [104.03 s. 1] 
    Sec. 10.  [103F.141] [RULES.] 
    Subdivision 1.  [AUTHORITY AND CRITERIA.] The commissioner 
shall adopt rules to implement sections 2 to 13, including:  
    (1) criteria for determining the floodplain uses that may 
be permitted without creating an unreasonable public hazard or 
unduly restricting the capacity of the floodplain to carry and 
discharge a regional flood; 
    (2) variance procedures; and 
    (3) the establishment of criteria for alternative or 
supplemental floodplain management measures such as 
floodproofing, subdivision rules, building codes, sanitation 
rules, and flood warning systems.  [104.05] 
    Subd. 2.  [PROTECTION NEEDED ONLY FOR REGIONAL FLOOD 
LEVEL.] Notwithstanding the rules adopted under this section 
establishing a flood protection level higher than the elevation 
of the regional flood, a local governmental unit may elect to 
adopt and enforce a flood protection level at the elevation of 
the regional flood in its floodplain ordinance.  [104.05] 
    Sec. 11.  [103F.145] [ENFORCEMENT AND PENALTIES.] 
    Subdivision 1.  [USES IN VIOLATION OF ORDINANCE ARE PUBLIC 
NUISANCES.] Every structure, fill, deposit, or other floodplain 
use placed or maintained in the floodplain in violation of a 
floodplain management ordinance adopted under the provisions of 
sections 3 to 13 is a public nuisance.  [104.07] 
    Subd. 2.  [CIVIL REMEDIES.] The creation of a public 
nuisance under this section may be enjoined and the maintenance 
of a public nuisance under this section may be abated by an 
action brought by the commissioner or a local governmental 
unit.  [104.07] 
    Subd. 3.  [CRIMINAL PENALTIES.] A person who violates a 
provision of sections 3 to 13 is guilty of a misdemeanor.  Each 
day that the violation exists is a separate offense.  [104.07] 
     Sec. 12.  [103F.151] [FLOOD PRONE AREA INVENTORY AND 
ASSESSMENT.] 
    The commissioner shall conduct a statewide inventory and 
flood damage assessment of flood prone structures and lands.  
[104.10] 
    Sec. 13.  [103F.155] [FLOOD PROTECTION PLANS.] 
    Subdivision 1.  [CONSTRUCTION OF FLOOD PROTECTION 
MEASURES.] If emergency flood protection measures are 
undertaken, the affected local governmental unit shall submit to 
the commissioner a plan outlining their use as a part of a 
future comprehensive flood emergency program.  The plan shall be 
submitted within 120 days after construction.  [104.03 s. 3] 
    Subd. 2.  [COMMISSIONER'S REVIEW.] (a) The commissioner 
shall review the plan and consult with the state office of civil 
defense and other appropriate state and federal agencies.  
Following the review, the commissioner shall accept, require 
modification, or reject the plan.  
    (b) If required modifications are not made, or if the plan 
is rejected, the commissioner shall order the removal of the 
emergency protection measures.  [104.03 s. 3] 
     Sec. 14.  [103F.161] [FLOOD HAZARD MITIGATION GRANTS.] 
    Subdivision 1.  [GRANTS AUTHORIZED.] The commissioner may 
make grants to local governments to: 
    (1) conduct floodplain damage reduction studies to 
determine the most feasible, practical, and effective methods 
and programs for mitigating the damages due to flooding within 
flood prone rural and urban areas and their watersheds; and 
    (2) plan and implement flood mitigation measures.  [104.11 
s. 1] 
    Subd. 2.  [ACTION ON GRANT APPLICATIONS.] (a) A local 
government may apply to the commissioner for a grant on forms 
provided by the commissioner.  The commissioner shall confer 
with the local government requesting the grant and may make a 
grant up to $75,000 based on the following considerations: 
    (1) the extent and effectiveness of mitigation measures 
already implemented by the local government requesting the 
grant; 
    (2) the feasibility, practicality, and effectiveness of the 
proposed mitigation measures and the associated nonflood related 
benefits and detriments; 
    (3) the level of grant assistance that should be provided 
to the local government, based on available facts regarding the 
nature, extent, and severity of flood problems; 
    (4) the frequency of occurrence of severe flooding that has 
resulted in declaration of the area as a flood disaster area by 
the president of the United States; 
    (5) the economic, social, and environmental benefits and 
detriments of the proposed mitigation measures; 
    (6) whether the floodplain management ordinance or 
regulation adopted by the local government meets the minimum 
standards established by the commissioner, the degree of 
enforcement of the ordinance or regulation, and whether the 
local government is complying with the ordinance or regulation; 
    (7) the degree to which the grant request is consistent 
with local water plans developed under chapters 103B and 103D; 
    (8) the financial capability of the local government to 
solve its flood hazard problems without financial assistance; 
and 
    (9) the estimated cost and method of financing of the 
proposed mitigation measures based on local money and federal 
and state financial assistance. 
    (b) If the amount of the grant requested is $75,000 or 
more, the commissioner shall determine, under the considerations 
in paragraph (a), whether any part of the grant should be 
awarded.  The commissioner must submit an appropriation request 
to the governor and the legislature for funding consideration 
before each odd-numbered year, consisting of requests or parts 
of grant requests of $75,000 or more.  The commissioner must 
prioritize the grant requests, under the considerations in 
paragraph (a), beginning with the projects the commissioner 
determines most deserving of financing.  
    (c) A grant may not exceed one-half the total cost of the 
proposed mitigation measures. 
    (d) After July 1, 1991, grants made under this section may 
be made to local governments whose grant requests are part of, 
or responsive to, a comprehensive local water plan prepared 
under chapter 103B or 103D.  [104.11 s. 2] 
    Sec. 15.  [103F.165] [FLOOD INSURANCE.] 
    Subdivision 1.  [POLICY.] It is the policy of the state 
that local governmental units subject to recurrent flooding 
participate in the national flood insurance program, Public Law 
Number 90-448, and amendatory and supplementary acts, so that 
the people of the state may have the opportunity to indemnify 
themselves from future flood losses through the purchase of the 
insurance.  [104.08 s. 1] 
    Subd. 2.  [LIST OF RECURRENT FLOODING AREAS.] The 
commissioner shall prepare a list of local governmental units 
having areas subject to recurrent flooding and shall notify each 
local governmental unit included on the list of the findings.  
If a local governmental unit objects to the commissioner's 
findings, it shall submit evidence supporting its objections 
within 45 days after receiving the commissioner's notification.  
The commissioner shall accept or reject the findings of each 
local governmental unit submitting evidence, shall prepare an 
amended list of local governmental units having areas subject to 
recurrent flooding, and shall notify each local governmental 
unit of its inclusion on the amended list.  [104.08 s. 2] 
    Subd. 3.  [APPLICATION FOR FLOOD INSURANCE.] Within 120 
days after receiving notice of inclusion on the amended list, 
each local governmental unit shall apply for participation in 
the national flood insurance program in the manner prescribed by 
federal laws and regulations.  [104.08 s. 3] 

                 SOUTHERN MINNESOTA RIVERS BASIN AREA II 
    Sec. 16.  [103F.171] [SOUTHERN MINNESOTA RIVERS BASIN AREA 
II BOUNDARIES.] 
    For the purposes of sections 16 to 24, the term "southern 
Minnesota rivers basin area II" means the area within the 
watersheds of rivers and streams that are tributaries of the 
Minnesota river from the south between the cities of Ortonville 
and Mankato.  Major rivers included within the watershed are the 
Yellow Bank, Lac Qui Parle, Yellow Medicine, Redwood, and 
Cottonwood.  All of Lac Qui Parle, Yellow Medicine, and Redwood 
counties, and parts of Lincoln, Lyon, Pipestone, Murray, 
Cottonwood, and Brown counties are included within the 
boundaries of the area.  [104.42] 
    Sec. 17.  [103F.173] [PROGRAM.] 
    There shall be a state grant-in-aid pilot program of 
providing financial assistance to units of local government, 
including counties, soil and water conservation districts, and 
watershed districts, located in the southern Minnesota river 
basin area II for project and construction costs for the 
building of floodwater retarding and retention structures within 
a general plan for floodplain management.  [104.43] 
    Sec. 18.  [103F.175] [AID FORMULA.] 
    Grants may be made by the board of water and soil resources 
to a local governmental unit for the purposes of sections 16 to 
24 in an amount not to exceed 75 percent of the total cost of 
each project, including site acquisition, engineering, and 
construction.  If federal funds are being utilized for a portion 
of the project costs, the state contribution may not exceed 50 
percent of the remaining nonfederal costs.  If the structure is 
located in the state of South Dakota, the two states shall share 
the nonfederal costs equally.  Money granted by the state may 
not be used for any project of stream channelization.  [104.44] 
    Sec. 19.  [103F.177] [OPERATION WITHIN AGENCY.] 
    Subdivision 1.  [BOARD OF WATER AND SOIL RESOURCES.] The 
board of water and soil resources shall supervise the 
grant-in-aid pilot program pursuant to sections 16 to 24.  
    Subd. 2.  [PROCEDURES AND FORMS.] The board shall devise 
procedures and forms for application for grants by the local 
units of government, and review of and decision on the 
applications by the state board. 
    Subd. 3.  [STAFF POSITION.] A professional engineer shall 
be employed by the board to work exclusively on the technical 
implementation and engineering of the pilot project established 
pursuant to sections 16 to 24.  The engineer shall assist the 
local units of government and the board to achieve the purposes 
of the project, and shall have duties including: 
    (1) field review and analysis of projects and project 
sites; 
    (2) preparation of permit applications, including 
evaluation of environmental effects; 
    (3) development of recommended pertinent provisions of 
permits for specific projects; 
    (4) preparation of plans for further consideration of 
remedial flood control structural measures as part of a general 
rural floodplain management effort; and 
    (5) evaluation of the effectiveness of completed projects 
constructed under this program.  [104.45] 
    Sec. 20.  [103F.179] [SELECTION OF PROJECTS.] 
    Subdivision 1.  [EVALUATION OF AREA AND SITES; FEDERAL 
COOPERATION.] Before a grant is made, a priority system shall be 
devised for the selection of projects to receive the aid.  The 
board of water and soil resources is the granting authority and 
shall cooperate with the United States Army Corps of Engineers, 
the department of natural resources, the United States Soil 
Conservation Service and the area II action committee in 
analysis of the general floodplain management plan for the area 
and in hydrological and engineering studies on specific proposed 
sites.  From that information, the board of water and soil 
resources shall determine the relative severity of the flooding 
problem which would be wholly or partly solved by each project.  
The range of priorities based on these findings shall provide a 
basis for selection of project sites. 
    Subd. 2.  [PROJECT REQUIREMENT FOR EACH WATERSHED.] 
Notwithstanding the requirement in subdivision 1 that project 
selection be based on a priority system, not more than one 
project may be located within any one of the Cottonwood, Lac Qui 
Parle, Redwood, Yellow Medicine, and Yellow Bank rivers' 
watersheds unless agreed upon by the area II action committee 
composed of representatives of each of those watersheds.  
[104.46] 
    Sec. 21.  [103F.181] [CONDITIONS FOR GRANTS.] 
    Subdivision 1.  [LOCAL EXPRESSION OF WILLINGNESS.] The 
local unit of government shall apply for a grant by a resolution 
requesting state funding assistance for the construction of a 
floodwater retention or retarding structure within its 
jurisdiction.  The resolution shall include provisions 
concerning local funding, if any.  The local unit of government 
shall state its intent to obtain necessary land rights for 
proposed construction sites and to assume responsibility for 
maintenance of the structure on its completion. 
    Subd. 2.  [GENERAL PLAN.] The local unit of government 
shall demonstrate that the construction project that it proposes 
is consistent with its general plan for floodplain management.  
The general plan of the local government unit shall be in 
conformity with the policy and objectives of this chapter and 
shall, where reasonable and practicable, include nonstructural 
means of floodplain management. 
    Subd. 3.  [FEDERAL AID AVAILABILITY.] The board of water 
and soil resources shall complete a detailed analysis of the 
availability of federal funds and programs to supplement or 
complement state and local efforts on each project and include 
the eligibility requirements and time frame for receiving the 
federal aid. 
    Subd. 4.  [ENVIRONMENTAL IMPACT STATEMENT.] The local unit 
of government, assisted by the project staff engineer, shall 
make a comprehensive evaluation of the positive and negative 
environmental effects which would be reasonably likely to take 
place if the particular proposed project would be constructed.  
[104.47] 
    Sec. 22.  [103F.183] [APPROVED PROJECTS.] 
    Subdivision 1.  [CONTRACTS.] When a proposed project is 
approved to receive a grant, the board of water and soil 
resources shall negotiate a contract with the local unit of 
government involved.  The contract shall specify the terms of 
state and local cooperation, including the financing arrangement 
for the construction and an agreement on maintenance of the 
structure after completion. 
    Subd. 2.  [PERMITS.] Before grant money is spent on 
construction of the structure, permits required for construction 
must be obtained from state agencies.  [104.48] 
    Sec. 23.  [103F.185] [INTERSTATE COOPERATION.] 
    The board of water and soil resources and the staff 
engineer may enter into a working agreement with the South 
Dakota-Minnesota Boundary Waters Commission, or successor 
organization, in regard to flood retention and retarding 
structures constructed pursuant to sections 16 to 24 that 
involve territory of the state of South Dakota as well as this 
state.  [104.49] 
    Sec. 24.  [103F.187] [REPORT TO LEGISLATURE.] 
    When the project has been in operation for a period of two 
years, the board of water and soil resources and the staff 
engineer shall prepare and deliver a report to the legislature 
on the program and its consequences with an evaluation of the 
feasibility and benefit of continuing the project.  [104.50] 

                         SHORELAND DEVELOPMENT 
    Sec. 25.  [103F.201] [REGULATORY PURPOSE OF SHORELAND 
DEVELOPMENT.] 
    To promote the policies in article 1, section 2, and 
chapter 116, it is in the interest of the public health, safety, 
and welfare to:  
    (1) provide guidance for the wise development of shorelands 
of public waters and thus preserve and enhance the quality of 
surface waters; 
    (2) preserve the economic and natural environmental values 
of shorelands; and 
    (3) provide for the wise use of water and related land 
resources of the state.  [105.485 s. 1] 
    Sec. 26.  [103F.205] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 25 to 29.  
     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources. 
    Subd. 3.  [MUNICIPALITY.] "Municipality" means a statutory 
or home rule charter city.  
    Subd. 4.  [SHORELAND.] "Shoreland" means land located 
within the following distances from the ordinary high water 
elevation of public waters:  
    (1) land within 1,000 feet from the normal high watermark 
of a lake, pond, or flowage; and 
    (2) land within 300 feet of a river or stream or the 
landward side of a floodplain delineated by ordinance on the 
river or stream, whichever is greater.  [105.485 s. 2] 
    Sec. 27.  [103F.211] [MODEL STANDARDS AND CRITERIA.] 
    Subdivision 1.  [ADOPTION.] The commissioner shall adopt 
model standards and criteria for the subdivision, use, and 
development of shoreland in municipalities and areas outside of 
a municipality.  The standards and criteria must include: 
    (1) the area of a lot and length of water frontage suitable 
for a building site; 
    (2) the placement of structures in relation to shorelines 
and roads; 
    (3) the placement and construction of sanitary and waste 
disposal facilities; 
    (4) designation of types of land uses; 
    (5) changes in bottom contours of adjacent public waters; 
    (6) preservation of natural shorelands through the 
restriction of land uses; 
    (7) variances from the minimum standards and criteria; and 
    (8) for areas outside of a municipality only, a model 
ordinance.  [105.485 s. 3] 
    Subd. 2.  [INTERGOVERNMENTAL ADVICE.] The state departments 
of agriculture, health, and trade and economic development; the 
state planning and pollution control agencies; the board of 
water and soil resources; and the Minnesota historical society 
shall provide information and advice necessary to prepare or 
amend the standards and criteria.  [105.485 s. 3] 
    Subd. 3.  [APPROVAL OF COMMISSIONERS OF HEALTH AND 
POLLUTION CONTROL AGENCY.] In addition to other requirements of 
chapter 14, the model standards and ordinance adopted under this 
section, or amendments to them must not be finally adopted 
unless approved by the commissioners of health and of the 
pollution control agency.  [105.485 s. 3] 
    Sec. 28.  [103F.215] [MODEL ORDINANCE AS COUNTY ORDINANCE.] 
    Subdivision 1.  [COUNTY ORDINANCE FAILING TO MEET 
STANDARDS.] The commissioner shall adapt the model ordinance to 
a county if, after notice and hearing as provided in article 7, 
section 35, the commissioner finds that a county has adopted a 
shoreland conservation ordinance that fails to meet the minimum 
standards established under section 27.  [105.485 s. 4] 
    Subd. 2.  [HEARING.] The commissioner shall hold at least 
one public hearing on the proposed ordinance in the manner 
provided in section 394.26, after giving notice as provided in 
section 394.26.  The ordinance is effective for the county on 
the date and in accordance with any rules the commissioner 
prescribes, by order, relating to compliance.  [105.485 s. 4] 
    Subd. 3.  [ENFORCEMENT.] The ordinance must be enforced as 
provided in section 394.37.  The penalties provided in section 
394.37 apply to violations of the commissioner's model ordinance 
for the county.  [105.485 s. 4] 
    Subd. 4.  [COMMISSIONER'S COSTS.] The cost incurred by the 
commissioner in adapting the model ordinance to a county under 
this section must be paid by the county after the commissioner 
submits an itemized statement of the costs to the county.  If 
the county fails to pay the costs within 90 days after the 
commissioner's statement is received, the commissioner may file 
a copy of the statement of the costs for collection by special 
tax levy with the county auditor.  The county auditor, upon 
receiving a statement from the commissioner, shall include the 
amount of the state's claim in the tax levy for general revenue 
purposes of the county.  On completion of the tax settlement 
following this levy, the county treasurer must pay the amount 
due to the state to the commissioner for deposit in the state 
treasury.  [105.485 s. 5] 
    Sec. 29.  [103F.221] [MUNICIPAL SHORELAND MANAGEMENT.] 
    Subdivision 1.  [COMMISSIONER'S REVIEW OF ORDINANCES.] (a) 
A municipality having shoreland within its corporate boundaries 
must submit ordinances or rules affecting the use and 
development of its shorelands to the commissioner for review.  
The commissioner must review the ordinances or rules and:  
    (1) determine whether the rules and ordinances are in 
substantial compliance with municipal shoreland management 
standards and criteria under subdivision 3; and 
    (2) consider any feature unique to the municipal shoreland 
in question, including the characteristics of the waters that 
may be affected by development, storm sewer facilities, and 
sanitary and waste disposal facilities in existence at the time 
of the commissioner's review.  
    (b) If the commissioner determines that the ordinances or 
rules of a municipality do not substantially comply with the 
state standards and criteria for municipal shoreland management, 
the commissioner must notify the municipality.  The notice must 
state the changes that are necessary to bring the ordinances or 
rules into substantial compliance with the standards and 
criteria.  By one year after receiving the notice from the 
commissioner, the municipality must make changes necessary to 
bring the ordinances or rules into substantial compliance with 
state standards and criteria.  [105.485 s. 6] 
    Subd. 2.  [COMMISSIONER'S ADOPTION OF ORDINANCE FOR 
MUNICIPALITY.] (a) The commissioner may adopt an ordinance or 
rules for the municipality if: 
    (1) a municipality does not have an ordinance or rule 
affecting the use and development of shoreland; 
    (2) the corporate boundaries of the municipality are 
expanded to include shorelands not previously included within 
the municipal boundaries and the municipality fails to adopt an 
ordinance within one year after including the shorelands within 
its municipal boundaries; or 
    (3) the commissioner determines that a municipal shoreland 
management ordinance does not substantially comply with the 
standards and criteria for municipal shoreland management and 
that the municipality has failed to make the necessary changes 
within one year after receiving notice of noncompliance.  
    (b) The ordinance or rules for the municipality must be 
adopted as provided in this paragraph.  The commissioner must 
hold at least one public hearing on the proposed ordinance or 
rules in the manner provided in section 462.357, after giving 
notice under section 462.357.  The ordinance or rules are 
effective for the municipality on the date and in accordance 
with rules prescribed by the commissioner relating to compliance.
    (c) The ordinance must be enforced as provided in section 
462.362.  The penalties in section 462.362 apply to violations 
of the ordinances or rules adopted for the municipality by the 
commissioner.  [105.485 s. 6] 
    Subd. 3.  [COMMISSIONER'S COST OF ADOPTING ORDINANCES.] The 
costs incurred by the commissioner in adopting the ordinances or 
rules for the municipality must be paid by the municipality and 
collected from the municipality in the same manner as costs are 
paid by a county and collected from a county under section 28, 
subdivision 4.  The tax levied to pay the costs may be levied in 
excess of the per capita levy limitation imposed under section 
275.11.  [105.485 s. 6] 
    Subd. 4.  [MUNICIPAL USE OF LAND OTHER THAN SHORELAND.] 
Municipal planning and land use controls for land other than 
shoreland in the vicinity of shoreland must be, to the maximum 
extent practical, compatible with planning and land use controls 
for shoreland adopted under subdivision 1.  [105.485 s. 7] 
    Subd. 5.  [MUNICIPAL ORDINANCE MAY BE MORE RESTRICTIVE.] A 
municipality may adopt and enforce ordinances or rules affecting 
the use and development of shoreland that are more restrictive 
than the standards and criteria adopted by the commissioner.  
[105.485 s. 8] 

                       WILD AND SCENIC RIVERS ACT 
    Sec. 30.  [103F.301] [CITATION.] 
    Sections 30 to 39 may be cited as the "Minnesota wild and 
scenic rivers act."  [104.31] 
    Sec. 31.  [103F.305] [SCENIC RIVER PROTECTION POLICY.] 
    The legislature finds that certain of Minnesota's rivers 
and their adjacent lands possess outstanding scenic, 
recreational, natural, historical, scientific and similar 
values.  It is in the interest of present and future generations 
to retain these values, and a policy of the state, and an 
authorized public purpose to preserve and protect these rivers.  
[104.32] 
    Sec. 32.  [103F.311] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 32 to 39.  [104.02 s. 1] 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  
    Subd. 3.  [FREE-FLOWING.] "Free-flowing" means existing in 
natural condition without significant artificial modification 
such as impoundment, diversion, or straightening.  The 
existence, however, of low dams, diversion works or other minor 
structures at the time any river is proposed for inclusion does 
not automatically bar its inclusion as a wild, scenic, or 
recreational river.  [104.33 s. 2] 
    Subd. 4.  [RECREATIONAL RIVERS.] "Recreational rivers" are 
those rivers that may have undergone some impoundment or 
diversion in the past and may have adjacent lands that are 
considerably developed, but that are still capable of being 
managed so as to further the purposes of sections 30 to 39.  
[104.33 s. 2] 
    Subd. 5.  [RIVER.] "River" means a flowing body of water 
such as a stream or a segment or tributary of a stream and may 
include lakes through which the river or stream flows.  [104.33 
s. 1] 
    Subd. 6.  [SCENIC EASEMENT.] "Scenic easement" means an 
interest in land, less than the fee title, that limits the use 
of the land to protect the scenic, recreational, or natural 
characteristics of a wild, scenic, or recreational river area.  
Unless otherwise expressly and specifically provided by the 
parties, the easement must be:  
    (1) perpetually held for the benefit of the people of the 
state; 
    (2) specifically enforceable by its holder or any 
beneficiary; 
    (3) binding upon the holder of the servient estate, and the 
holder's heirs, successors, and assigns; and 
    (4) restricted so as not to give the holder or any 
beneficiary the right to enter on the land except for 
enforcement of the easement.  [104.37 s. 1] 
    Subd. 7.  [SCENIC RIVERS.] "Scenic rivers" are those rivers 
that exist in a free-flowing state and with adjacent lands that 
are largely undeveloped.  [104.33 s. 2] 
    Subd. 8.  [SYSTEM.] "System" means the state wild and 
scenic rivers system.  
    Subd. 9.  [WILD RIVERS.] "Wild rivers" are those rivers 
that exist in a free-flowing state, with excellent water 
quality, and with adjacent lands that are essentially 
primitive.  [104.33 s. 2] 
    Sec. 33.  [103F.315] [WILD AND SCENIC RIVERS SYSTEM.] 
    Subdivision 1.  [ELIGIBILITY.] An entire river or a segment 
of a river and adjacent lands in this state that possess 
outstanding scenic, recreational, natural, historical, 
scientific, or similar values are eligible for inclusion within 
the Minnesota wild and scenic rivers system.  [104.33 s. 1] 
    Subd. 2.  [CLASSIFICATION.] Rivers or segments of rivers 
included within the system shall be classified as wild, scenic, 
or recreational.  [104.33 s. 2] 
    Sec. 34.  [103F.321] [ADMINISTRATION AND RULES.] 
    Subdivision 1.  [ADMINISTRATION.] The commissioner shall 
administer the wild and scenic rivers system.  The commissioner 
shall conduct studies, develop criteria for classification and 
designation of rivers, designate rivers for inclusion within the 
system, manage the components of the system, and adopt rules to 
manage and administer the system.  [104.34 s. 1] 
    Subd. 2.  [SHORELAND RULES.] (a) The commissioner shall 
adopt statewide minimum standards and criteria for the 
preservation and protection of shorelands within the boundaries 
of wild, scenic, and recreational rivers.  
    (b) The standards and criteria may include:  
    (1) the matters covered in the commissioner's standards and 
criteria for shoreland areas, as provided in sections 25 to 29, 
except that the distance limitations contained in sections 25 to 
29 do not apply to standards and criteria for wild, scenic, and 
recreational rivers; 
    (2) furtherance of the purposes of sections 30 to 39 and of 
the classifications of rivers; and 
    (3) application to the local governments as specified in 
sections 25 to 29.  [104.34 s. 2] 
    Sec. 35.  [103F.325] [DESIGNATION PROCEDURE.] 
    Subdivision 1.  [MANAGEMENT PLAN.] (a) For each river 
proposed to be included in the wild and scenic rivers system, 
the commissioner shall prepare a management plan, without 
unreasonable restrictions upon compatible, preexisting, economic 
uses of particular tracts of land, to preserve and enhance the 
values that cause the river to be proposed for inclusion in the 
system.  
    (b) The plan shall: 
    (1) give primary emphasis to the area's scenic, 
recreational, natural, historical, scientific and similar 
values; 
    (2) state the proposed classification of the river and 
segments of the river; 
    (3) designate the boundaries of the area along the river to 
be included within the system, which may not include more than 
320 acres per mile on both sides of the river; and 
    (4) include proposed rules governing the use of public 
lands and waters within the area, which may differ from 
statewide rules to the extent necessary to take account of the 
particular attributes of the area.  
    (c) The plan may include proposed standards and criteria 
adopted under section 34 for local land use controls that differ 
from statewide standards and criteria to the extent necessary to 
take account of the particular attributes of the area.  [104.35 
s. 1] 
    Subd. 2.  [REVIEW AND HEARING.] (a) The commissioner shall 
make the proposed management plan available to affected local 
governmental bodies, shoreland owners, conservation and outdoor 
recreation groups, the commissioner of trade and economic 
development, the director of public service, the governor, and 
the general public.  The commissioners of trade and economic 
development and of public service and the governor shall review 
the proposed management plan in accordance with the criteria in 
section 86A.09, subdivision 3, and submit any written comments 
to the commissioner within 60 days after receipt of the proposed 
management plan.  
    (b) By 60 days after making the information available, the 
commissioner shall conduct a public hearing on the proposed 
management plan in the county seat of each county that contains 
a portion of the designated system area, in the manner provided 
in chapter 14.  [104.35 s. 2] 
    Subd. 3.  [POST HEARING REVIEW.] Upon receipt of the 
administrative law judge's report, the commissioner shall 
immediately forward the proposed management plan and the 
administrative law judge's report to the commissioners of trade 
and economic development and of public service for review under 
section 86A.09, subdivision 3, except that the review by the 
commissioners must be completed or be deemed completed within 30 
days after receiving the administrative law judge's report, and 
the review by the governor must be completed or be deemed 
completed within 15 days after receipt.  [104.35 s. 3] 
    Subd. 4.  [DESIGNATION OF RIVER AS PART OF SYSTEM.] Within 
60 days after receipt of the administrative law judge's report, 
the commissioner shall decide whether to designate by order the 
river or a segment of the river as a wild, scenic, or 
recreational river and, if so designated, shall adopt a 
management plan to govern the area.  The commissioner shall 
notify and inform public agencies and private landowners of the 
plan and its purposes to encourage their cooperation in the 
management and use of their land in a manner consistent with the 
plan and its purposes.  [104.35 s. 3] 
    Subd. 5.  [RESERVATION OF LEGISLATIVE AUTHORITY.] The 
legislature may at any time designate additional rivers to be 
included within the system, exclude rivers previously included 
in the system, or change the classification of rivers classified 
by the commissioner.  [104.35 s. 4] 
    Sec. 36.  [103F.331] [ACQUISITION AND DEVELOPMENT OF 
SYSTEM.] 
    Subdivision 1.  [ACQUISITION AUTHORITY.] To implement the 
system, the commissioner may acquire the title, scenic 
easements, or other interests in land, by purchase, grant, gift, 
devise, exchange, lease, or other lawful means.  [104.37 s. 1] 
    Subd. 2.  [DEVELOPMENT OF PUBLIC AREAS.] The commissioner 
may designate and develop appropriate areas of public land along 
wild, scenic, and recreational rivers as water waysides for 
facilities compatible with the class of river, including, as 
appropriate, primitive campsites, picnic sites, portages, water 
access sites, sanitation facilities, and interpretive display.  
[104.37 s. 2] 
    Subd. 3.  [CANOE AND BOATING ROUTES.] (a) The commissioner 
may mark canoe and boating routes along a wild, scenic, or 
recreational river, consistent with the classification and 
characteristics of the river, including points of interest, 
portages, campsites, dams, rapids, waterfalls, whirlpools, and 
other hazards to navigation.  
     (b) Canoe routes, boating routes, campsites, and portages 
marked under this subdivision are not subject to the provisions 
of section 160.06.  [104.37 s. 3] 
    Subd. 4.  [ADDITIONAL DESIGNATION AS TROUT STREAM.] The 
commissioner may designate all or a portion of a state wild, 
scenic, or recreational river that possesses the necessary 
qualifications as a state trout stream, and make habitat 
improvement as may be necessary, desirable, and consistent with 
the classification of the river.  [104.37 s. 4] 
    Sec. 37.  [103F.335] [LOCAL GOVERNMENT COMPLIANCE.] 
    Subdivision 1.  [COMPLIANCE OF ORDINANCES WITH SYSTEM.] (a) 
Within six months after establishment of a wild, scenic, or 
recreational river system, each local governmental unit with 
jurisdiction over a portion of the system shall adopt or amend 
its ordinances and land use district maps to the extent 
necessary to comply with the standards and criteria of the 
commissioner and the management plan.  
    (b) If a local government fails to adopt adequate 
ordinances, maps, or amendments within six months, the 
commissioner shall adopt the ordinances, maps, or amendments in 
the manner and with the effect specified in section 28.  [104.36 
s. 1] 
    (c) The commissioner shall assist local governments in the 
preparation, implementation and enforcement of the ordinances.  
[104.36 s. 2] 
    Subd. 2.  [LOCAL GOVERNMENTAL UNITS MUST IMPLEMENT SYSTEM.] 
All state, local and special governmental units, councils, 
commissions, boards, districts, agencies, departments and other 
authorities shall exercise their powers to implement the 
purposes of sections 30 to 39 and management plans adopted by 
the commissioner.  [104.38] 
    Subd. 3.  [LAND TRANSFERS CONSISTENT WITH SYSTEM 
PLAN.] Land owned by the state and political subdivisions shall 
be administered in accordance with the management plan, and land 
owned by governmental bodies within the designated boundaries of 
a wild, scenic, or recreational river area may not be 
transferred to any other person or entity if the transfer would 
be inconsistent with the management plan.  [104.38] 
    Sec. 38.  [103F.341] [FEDERAL-STATE RELATIONS.] 
    Sections 30 to 39 do not preclude a river in the state 
system from becoming a part of the federal wild and scenic 
rivers system as established in the Wild and Scenic Rivers Act, 
Public Law Number 90-542; United States Code, title 16, section 
1271 et seq., as amended.  The commissioner is authorized to 
seek, alone or in conjunction with other governmental 
authorities, financial and technical assistance from the federal 
government and to enter into written cooperative agreements for 
the joint administration of a river in the federal wild and 
scenic rivers system.  [104.39] 
    Sec. 39.  [103F.345] [CONFLICT WITH OTHER LAWS.] 
    A river in the wild and scenic rivers system is subject to 
the provisions of sections 30 to 39, except that in case of 
conflict with some other law of this state the more protective 
provision shall apply.  [104.40] 

                          LOWER ST. CROIX RIVER
    Sec. 40.  [103F.351] [LOWER ST. CROIX WILD AND SCENIC RIVER 
ACT.] 
    Subdivision 1.  [FINDINGS.] The lower St. Croix river, 
between the dam near Taylors Falls and its confluence with the 
Mississippi river, constitutes a relatively undeveloped scenic 
and recreational asset lying close to the largest densely 
populated area of the state.  The preservation of this unique 
scenic and recreational asset is in the public interest and will 
benefit the health and welfare of the citizens of the state.  
The state recognizes and concurs in the inclusion of the lower 
St. Croix river into the federal wild and scenic rivers system 
by the Lower St. Croix River Act of the 92nd Congress, Public 
Law Number 92-560.  The authorizations of the state are 
necessary to the preservation and administration of the lower 
St. Croix river as a wild and scenic river, particularly in 
relation to those portions of the river that are to be jointly 
preserved and administered as a wild and scenic river by this 
state and Wisconsin.  [104.25 s. 1] 
    Subd. 2.  [COMPREHENSIVE MASTER PLAN.] (a) The commissioner 
of natural resources shall join with the secretary of the United 
States Department of the Interior and the appropriate agency of 
the state of Wisconsin in the preparation of the comprehensive 
master plan relating to boundaries, classification, and 
development required by section 3 of the Lower St. Croix River 
Act of 1972, and by section 3(b) of the Wild and Scenic Rivers 
Act, Public Law Number 90-542.  
    (b) The commissioner shall make the proposed comprehensive 
master plan available to affected local governmental bodies, 
shoreland owners, conservation and outdoor recreation groups, 
and the general public.  
    (c) Not less than 30 days after making the information 
available, the commissioner shall conduct a public hearing on 
the proposed comprehensive master plan in the county seat of 
each county which contains a portion of the area covered by the 
comprehensive master plan, in the manner provided in chapter 
14.  [104.25 s. 2] 
    Subd. 3.  [ACQUISITION OF LAND AND EASEMENTS.] The 
commissioner of natural resources may acquire land, scenic 
easements, or other interests in land by gift, purchase, or 
other lawful means, and may acquire scenic easement interests in 
land by eminent domain.  The acquisitions must be proposed for 
acquisition by the state by the comprehensive master plan.  
[104.25 s. 3] 
    Subd. 4.  [RULES.] (a) The commissioner of natural 
resources shall adopt rules that establish guidelines and 
specify standards for local zoning ordinances applicable to the 
area within the boundaries covered by the comprehensive master 
plan.  
    (b) The guidelines and standards must be consistent with 
this section, the federal Wild and Scenic Rivers Act, and the 
federal Lower St. Croix River Act of 1972.  The standards 
specified in the guidelines must include:  
    (1) the prohibition of new residential, commercial, or 
industrial uses other than those that are consistent with the 
above mentioned acts; and 
    (2) the protection of riverway lands by means of acreage, 
frontage, and setback requirements on development.  
    (c) Cities, counties, and towns lying within the areas 
affected by the guidelines shall adopt zoning ordinances 
complying with the guidelines and standards within the time 
schedule prescribed by the commissioner.  [104.25 s. 3] 
    Subd. 5.  [ADMINISTRATION.] The commissioner of natural 
resources in cooperation with appropriate federal authorities 
and authorities of the state of Wisconsin shall administer state 
lands and waters in conformance with this section, the federal 
Wild and Scenic Rivers Act, and the federal Lower St. Croix 
River Act of 1972.  [104.25 s. 3] 

             MISSISSIPPI HEADWATERS PLANNING AND MANAGEMENT 
    Sec. 41.  [103F.361] [FINDINGS AND INTENT.] 
    Subdivision 1.  [FINDINGS.] The legislature finds that:  
    (1) the Mississippi river from its outlet at Lake Itasca, 
Clearwater county, to the southerly boundary of Morrison county, 
Minnesota, possesses outstanding and unique natural, scientific, 
historical, recreational and cultural values deserving of 
protection and enhancement; 
    (2) the counties of Clearwater, Hubbard, Beltrami, Cass, 
Itasca, Aitkin, Crow Wing and Morrison have entered into a joint 
powers agreement pursuant to law to develop a plan for the 
protection and enhancement of the foregoing values; and 
    (3) the plan adopted by the counties pursuant to the joint 
powers agreement establishes guidelines and minimum standards 
for cooperative local management of this segment of the 
Mississippi river.  [114B.01] 
    Subd. 2.  [LEGISLATIVE INTENT.] It is the intent of 
sections 41 to 49 to authorize and direct the board and the 
counties to implement this comprehensive plan for the 
Mississippi headwaters area.  [114B.01] 
    Sec. 42.  [103F.363] [APPLICABILITY.] 
    Subdivision 1.  [GENERALLY.] Sections 41 to 49 apply to the 
counties of Clearwater, Hubbard, Beltrami, Cass, Itasca, Aitkin, 
Crow Wing and Morrison.  [114B.07] 
    Subd. 2.  [LEECH LAKE INDIAN RESERVATION.] Sections 41 to 
49 do not alter or expand the zoning jurisdiction of the 
counties within the exterior boundaries of the Leech Lake Indian 
Reservation.  The comprehensive plan of the board and the county 
ordinances adopted pursuant to section 45, subdivision 1, apply 
only to areas within the zoning jurisdiction of the counties as 
provided by law in effect prior to May 20, 1981.  [114B.03 s. 4] 
    Sec. 43.  [103F.365] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 41 to 49.  [114B.02 s. 1] 
    Subd. 2.  [BOARD.] "Board" means the Mississippi headwaters 
board established under section 44.  [114B.02 s. 1] 
    Subd. 3.  [COUNTIES.] "Counties" means the counties of 
Clearwater, Hubbard, Beltrami, Cass, Itasca, Aitkin, Crow Wing 
and Morrison.  [114B.02 s. 1] 
    Sec. 44.  [103F.367] [MISSISSIPPI HEADWATERS BOARD.] 
    Subdivision 1.  [ESTABLISHMENT.] The Mississippi headwaters 
board established by the counties of Clearwater, Hubbard, 
Beltrami, Cass, Itasca, Aitkin, Crow Wing and Morrison by 
agreement entered into on February 22, 1980, pursuant to section 
471.59, is established as a permanent board with authority to 
prepare, adopt and implement a comprehensive land use plan 
designed to protect and enhance the Mississippi river and 
related shoreland areas situated within the counties.  [114B.02 
s. 2] 
    Subd. 2.  [MEMBERSHIP.] (a) The board shall consist of 
eight members.  The governing body of each county shall appoint 
one of its members to serve on the board.  
    (b) The terms of board members are two years commencing on 
the first Monday in January of odd-numbered years.  
     (c) Vacancies on the board shall be filled for the 
remainder of the term by the governing body that made the 
original appointment.  
     (d) The governing body of a county may designate another 
member of the governing body or a county officer to act as an 
alternate for the member appointed by that county.  [114B.02 s. 
3] 
    Subd. 3.  [OFFICERS.] (a) The board shall annually appoint 
from among its members a chair, vice-chair, and 
secretary-treasurer who shall serve for concurrent one year 
terms.  
    (b) The chair shall preside over all meetings of the board 
and may call special meetings at reasonable times and upon 
adequate notice when necessary.  
     (c) The vice-chair shall preside over the meetings of the 
board in the absence of the chair.  
    (d) The secretary-treasurer or the designee of the 
secretary-treasurer shall keep a record of all proceedings of 
the board.  The secretary-treasurer shall provide for the proper 
receipt and disbursement of funds.  [114B.02 s. 4] 
    Subd. 4.  [MEETINGS.] (a) The regular meetings of the board 
shall be held at times and places prescribed by it.  
    (b) A majority of all members of the board shall constitute 
a quorum and a majority vote of all members shall be required 
for actions taken by the board.  [114B.02 s. 5] 
    Subd. 5.  [STAFF AND CONTRACTS.] The board may employ staff 
and contract for goods and services as necessary to implement 
sections 41 to 49.  Contracts are subject to the statutory 
procedures and restrictions applicable to county contracts.  
[114B.03 s. 7] 
    Subd. 6.  [FUNDING.] The board shall annually submit to 
each county for its approval an estimate of the funds it will 
need from that county in the next fiscal year to prepare and 
implement the comprehensive land use plan and otherwise carry 
out the duties imposed upon it by sections 41 to 49.  Each 
county shall, upon approval of the estimate by its governing 
body, furnish the necessary funds to the board.  The board may 
apply for, receive and disburse federal, state and other grants 
and donations.  [114B.03 s. 6] 
    Subd. 7.  [ADVISORY COMMITTEES.] The board shall appoint 
advisory committees, representing a broad geographical area and 
diverse public interests, and conduct public meetings and 
hearings necessary to afford the public an opportunity to become 
fully informed of all deliberations in the preparation and 
implementation of the plan.  [114B.03 s. 2] 
    Subd. 8.  [CONTACT WITH GOVERNMENT AGENCIES.] The board 
shall initiate and maintain contacts with governmental agencies 
as necessary to properly prepare the plan and shall negotiate 
cooperative management agreements with the United States Forest 
Service and Bureau of Land Management and the state department 
of natural resources.  The board, Beltrami, Cass, Hubbard, and 
Itasca counties shall initiate and maintain contacts with the 
governing body of the Leech Lake Indian Reservation and shall 
negotiate a cooperative management and jurisdiction agreement 
with the reservation governing body.  [114B.03 s. 3] 
    Sec. 45.  [103F.369] [COMPREHENSIVE LAND USE PLAN.] 
    Subdivision 1.  [ADOPTION OF EXISTING PLAN.] The 
comprehensive land use plan prepared by the board and approved 
by resolution adopted on February 12, 1981, is the comprehensive 
land use plan authorized by section 44, subdivision 1, and shall 
be implemented by the board as provided in this section and 
section 47.  [114B.03 s. 1] 
    Subd. 2.  [PLAN PROVIDES MINIMUM STANDARDS.] The standards 
set forth in the plan are the minimum standards which may be 
adopted by the board and by the counties for the protection and 
enhancement of the natural, scientific, historical, recreational 
and cultural values of the Mississippi river and related 
shoreland areas subject to the plan.  Except for forest 
management, fish and wildlife habitat improvement, and open 
space recreational uses as defined in the plan, state or county 
lands within the boundaries established by the plan may not be 
offered for public sale or lease.  The board with the agreement, 
expressed by resolution adopted after public hearing, of the 
county boards of Clearwater, Hubbard, Beltrami, Cass, Itasca, 
Aitkin, Crow Wing, and Morrison counties may amend the plan in 
any way that does not reduce the minimum standards set forth in 
the plan approved on February 12, 1981.  [114B.03 s. 1] 
    Subd. 3.  [IMPLEMENTATION.] The board shall develop and 
establish a schedule for implementation and common 
administration of the plan by the counties.  The schedule shall 
be binding upon the counties subject to approval by the 
governing bodies of the respective counties.  [114B.03 s. 5] 
    Subd. 4.  [COUNTY LAND USE ORDINANCE MUST BE CONSISTENT 
WITH PLAN.] The counties shall adopt land use ordinances 
consistent with the comprehensive land use plan of the board.  
[114B.03 s. 1] 
    Sec. 46.  [103F.371] [RESPONSIBILITIES OF OTHER 
GOVERNMENTAL UNITS.] 
    All local and special governmental units, councils, 
commissions, boards and districts and all state agencies and 
departments must exercise their powers so as to further the 
purposes of sections 41 to 49 and the land use plan adopted by 
the board on February 12, 1981.  Land owned by the state, its 
agencies, and political subdivisions shall be administered in 
accordance with the land use plan adopted by the board on 
February 12, 1981.  [114B.031] 
    Sec. 47.  [103F.373] [REVIEW AND CERTIFICATION OF LAND USE 
ACTIONS.] 
    Subdivision 1.  [PURPOSE.] To assure that the comprehensive 
land use plan prepared by the board is not nullified by 
unjustified exceptions in particular cases and to promote 
uniformity in the treatment of applications for exceptions, a 
review and certification procedure is established for the 
following categories of land use actions taken by the counties 
and directly or indirectly affecting land use within the area 
covered by the plan:  
    (1) the adoption or amendment of an ordinance regulating 
the use of land, including rezoning of particular tracts of 
land; 
    (2) the granting of a variance from provisions of the land 
use ordinance; and 
    (3) the approval of a plat which is inconsistent with the 
land use ordinance.  [114B.04 s. 1] 
    Subd. 2.  [CERTIFICATION.] Notwithstanding any provision of 
chapter 394 to the contrary, an action of a type specified in 
subdivision 1, clauses (1) to (3), is not effective until the 
board has reviewed the action and certified that it is 
consistent with the comprehensive plan of the board.  In 
determining consistency of ordinances and ordinance amendments, 
the provisions of the comprehensive land use plan shall be 
considered minimum standards.  An aggrieved person may appeal a 
decision of the type specified in subdivision 1, clauses (1) to 
(3), that is reviewed by the board under this section in the 
same manner as provided for review of a decision of a board of 
adjustment in section 394.27, subdivision 9, but only after the 
procedures prescribed under this section have been completed.  
[114B.04 s. 2] 
    Subd. 3.  [PROCEDURE FOR CERTIFICATION.] A copy of the 
notices of public hearings or, when a hearing is not required, a 
copy of the application to consider an action of a type 
specified in subdivision 1, clauses (1) to (3), must be 
forwarded to the board by the county at least 15 days before the 
hearing or meetings to consider the actions.  The county shall 
notify the board of its final decision on the proposed action 
within ten days of the decision.  By 30 days after the board 
receives the notice, the board shall notify the county and the 
applicant of its approval or disapproval of the proposed 
action.  [114B.04 s. 3] 
    Subd. 4.  [DISAPPROVAL OF ACTIONS.] (a) If a notice of 
disapproval is issued by the board, the county or the applicant 
may, within 30 days of the notice, file with the board a demand 
for a hearing.  If a demand is not filed within the 30-day 
period, the disapproval becomes final.  
    (b) If a demand is filed within the 30-day period, a 
hearing must be held within 60 days of demand.  The hearing must 
be preceded by two weeks' published notice.  Within 30 days 
after the hearing, the board must: 
    (1) affirm its disapproval of the proposed action; or 
    (2) certify approval of the proposed action.  [114B.04 s. 
4] 
    Sec. 48.  [103F.375] [INCORPORATION AND ANNEXATION.] 
    Subdivision 1.  [MORATORIUM ON CERTAIN ACTIVITIES.] If land 
subject to the comprehensive land use plan of the board is 
annexed, incorporated, or otherwise subjected to the land use 
planning authority of a home rule charter or statutory city, a 
moratorium shall exist on: 
    (1) all subdivision platting and building permits on the 
land until zoning regulations are adopted for the land that 
comply with the provisions of the comprehensive plan of the 
board; and 
    (2) construction, grading and filling, and vegetative 
cutting as those activities are defined in the comprehensive 
plan.  [114B.05] 
    Subd. 2.  [EXCEPTION FOR WORK UNDER PRIOR PERMITS.] This 
section does not apply to work done pursuant to lawful permits 
issued before the land became subject to the land use planning 
authority of the city.  [114B.05] 
    Sec. 49.  [103F.377] [BIENNIAL REPORT.] 
    During the first year of each biennial legislative session, 
the board shall prepare and present to the appropriate policy 
committees of the legislature a report concerning the actions of 
the board in exercising the authority granted by the legislature 
under sections 41 to 49.  The report must include an assessment 
of the effectiveness of the board's comprehensive land use plan 
and its implementation in protecting and enhancing the natural, 
scientific, historical, recreational and cultural values of the 
Mississippi river and related shorelands situated within the 
member counties.  [114B.06] 

                           PROJECT RIVERBEND 
    Sec. 50.  [103F.381] [FINDINGS.] 
    The legislature finds that the Minnesota river from the 
city of Franklin in Renville county to LeSueur in LeSueur county 
possesses outstanding scenic, recreational, natural, historical, 
scientific, and similar values.  Because it is in the interest 
of present and future generations to retain these values, the 
legislature finds that the adoption and implementation of a 
comprehensive land use plan is necessary.  [MN L 1982, c 627, 
sec 1, subd 1] 
    Sec. 51.  [103F.383] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 51 to 56. 
    Subd. 2.  [BOARD.] "Board" means the Project Riverbend 
board.  
    Subd. 3.  [COUNTIES.] "Counties" means the counties of 
Renville, Redwood, Brown, Nicollet, Blue Earth, and LeSueur, 
except as otherwise provided in Laws 1982, chapter 627, section 
7.  [MN L 1982, c 627, sec 1, subd 2] 
    Sec. 52.  [103F.385] [BOARD.] 
    Subdivision 1.  [ESTABLISHMENT.] The Project Riverbend 
board is established under Laws 1982, chapter 627.  [MN L 1982, 
c 627, sec 2, subd 1] 
    Subd. 2.  [MEMBERS.] (a) Except as provided in Laws 1982, 
chapter 627, section 7, the board shall consist of six members, 
one each from the counties of Renville, Redwood, Brown, 
Nicollet, Blue Earth, and LeSueur.  
    (b) The members shall be appointed by their respective 
county boards for a term of two years.  [MN L 1982, c 627, sec 
2, subd 2] 
    Subd. 3.  [CHAIR.] The board shall select a chairperson, 
who shall preside at meetings and hearings and may call special 
meetings.  [MN L 1982, c 627, sec 2, subd 3] 
    Subd. 4.  [PROCEDURAL RULES AND RECORDS.] The board shall 
adopt rules for the transaction of its business and shall keep a 
public record of its transactions, findings, and determinations. 
[MN L 1982, c 627, sec 2, subd 3] 
    Subd. 5.  [QUORUM.] A majority of all members of the board 
constitutes a quorum and a majority vote of all members is 
required for the board to take any action pursuant to section 
54.  [MN L 1982, c 627, sec 2, subd 3] 
    Subd. 6.  [STAFF AND FUNDS.] The counties shall supply 
staff and funds to the board as may be necessary for its 
operation.  [MN L 1982, c 627, sec 2, subd 4] 
    Sec. 53.  [103F.387] [COMPREHENSIVE PLAN.] 
    (a) The comprehensive plan known as "Project Riverbend 
Fifth Draft, June 1981" shall be implemented by the board and 
the counties as provided in sections 51 to 56.  The counties 
shall adopt land use ordinances consistent with the plan.  The 
standards set forth in the plan are the minimum standards that 
may be adopted by the board and the counties.  The board may 
amend the comprehensive land use plan in any way that does not 
reduce the minimum standards set forth in the plan.  
    (b) The board shall develop and establish a schedule for 
implementation and administration of the plan by the counties.  
The schedule shall be binding on the counties subject to 
approval by the governing bodies of the respective counties.  
[MN L 1982, c 627, sec 3] 
    Sec. 54.  [103F.389] [REVIEW AND CERTIFICATION OF LAND USE 
ACTIONS.] 
    Subdivision 1.  [LAND USE ACTIONS COVERED.] To ensure that 
the comprehensive land use plan is not nullified by unjustified 
exceptions in particular cases and to promote uniformity in the 
treatment of applications for exceptions, a review and 
certification procedure is established for the following 
categories of land use actions taken by the counties and 
directly or indirectly affecting land use within the area 
covered by the plan:  
    (1) the adoption or amendment of an ordinance regulating 
the use of land, including rezoning of a particular tract of 
land; 
    (2) the granting of a variance from provisions of the land 
use ordinances; and 
    (3) the approval of a plat which is inconsistent with the 
land use ordinance.  [MN L 1982, c 627, sec 4, subd 1] 
    Subd. 2.  [LAND USE ACTIONS MUST BE CONSISTENT WITH 
PLAN.] (a) Notwithstanding any contrary provision of chapter 
394, an action of a type specified in subdivision 1, clauses (1) 
to (3), is not effective until the board has reviewed the action 
and certified that it is consistent with the comprehensive plan 
of the board.  
     (b) In determining consistency of ordinances and ordinance 
amendments, the provisions of the comprehensive land use plan 
shall be considered minimum standards.  An aggrieved person may 
appeal a decision of the type specified in subdivision 1, 
clauses (1) to (3), which is reviewed by the board under this 
section in the manner provided for review of a decision of a 
board of adjustment under section 394.27, subdivision 9, but 
only after the procedures prescribed under this section have 
been completed.  [MN L 1982, c 627, sec 4, subd 2] 
    Subd. 3.  [PROCEDURE FOR CERTIFICATION.] (a) A copy of all 
notices of public hearings or, when a hearing is not required, a 
copy of the application to consider any actions of a type 
specified in subdivision 1, clauses (1) to (3), must be 
forwarded to the board by the county at least ten days prior to 
the hearing or meetings to consider the land use actions.  
     (b) The county shall notify the board of its final decision 
on the proposed action within ten days of the decision.  
     (c) By 30 days from the time it receives the notice, the 
board shall notify the county and the applicant of its approval 
or disapproval of the proposed action.  [MN L 1982, c 627, sec 
4, subd 3] 
    Subd. 4.  [DISAPPROVAL OF ACTIONS.] (a) If the board issues 
a notice of disapproval, either the county or the applicant may, 
within 30 days of notice, file a demand for a hearing with the 
board.  
    (b) If a demand is not filed during that period, the 
disapproval becomes final.  
    (c) If a demand is filed within the 30-day period, a 
hearing shall be held within 60 days of demand and shall be 
preceded by two weeks' published notice.  Within 30 days after 
the hearing, the board shall either affirm its disapproval of 
the proposed action or certify its approval.  [MN L 1982, c 627, 
sec 4, subd 4] 
    Sec. 55.  [103F.391] [RESTRICTIONS ON LAND INCORPORATED OR 
ANNEXED.] 
    (a) If land subject to the comprehensive land use plan of 
the board is annexed, incorporated, or otherwise subjected to 
the land use planning authority of a home rule charter or 
statutory city, a moratorium shall exist on all subdivision 
platting and building permits on that land until zoning 
regulations are adopted for the land that comply with the 
provisions of the comprehensive plan of the board.  
    (b) The moratorium shall also apply to construction, 
grading and filling, and vegetative cutting as those activities 
are defined in the comprehensive plan.  
    (c) This section does not apply to work done pursuant to 
lawful permits issued before the land became subject to the land 
use planning authority of the city.  [MN L 1982, c 627, sec 5] 
    Sec. 56.  [103F.393] [BIENNIAL REPORT.] 
    During the first year of each biennial legislative session, 
the board shall prepare and present to the appropriate policy 
committees of the legislature a report concerning the actions of 
the board in exercising the authority granted by the legislature 
under sections 51 to 56.  The report shall include an assessment 
of the effectiveness of the board's comprehensive land use plan 
and its implementation in protecting and enhancing the 
outstanding scenic, recreational, natural, historical, 
scientific, and similar values of the Minnesota river and 
related shorelands situated within the member counties.  [MN L 
1982, c 627, sec 6] 

                              SOIL EROSION
    Sec. 57.  [103F.401] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 57 to 68.  [40.19 s. 1] 
    Subd. 2.  [CONSERVATION PLAN.] "Conservation plan" means a 
set of practices that will decrease soil erosion to the soil 
loss limits on a particular parcel of land.  [40.19 s. 2a] 
    Subd. 3.  [CONSERVATION PRACTICES.] "Conservation 
practices" means practices and standards containing a 
definition, purpose, and conditions that the practice applies 
including design requirements and specifications containing a 
statement of details required for installing a conservation 
practice, including kinds, quality, and quantity of work and 
materials needed to meet the standards.  A conservation practice 
may be a permanent or temporary, vegetative or structural 
measure that will aid the control of wind and water erosion.  
Permanent practices are those that have effective life greater 
than ten years and include grassed waterways, terraces, field 
windbreaks, water control structures, grade stabilization 
structures, sediment retention structures, strip-cropping, and 
other permanent practices approved by the board of water and 
soil resources.  Temporary practices include conservation 
tillage, contour farming, grasses and legumes in rotation, 
emergency tillage, and any other cultural practices approved by 
the board of water and soil resources.  [40.19 s. 5] 
    Subd. 4.  [DEVELOPMENT ACTIVITY.] "Development activity" 
means a physical disturbance of the land, that may result in 
sedimentation of adjacent lands or waters, associated with 
activities that include clearing, grading, excavating, 
transporting, and filling lands.  Road construction by federal, 
state, county, and municipal governments designed according to 
department of transportation standard specifications for 
construction are not development activities.  [40.19 s. 6] 
    Subd. 5.  [EROSION.] "Erosion" means any process that 
removes soil away from the surface of the land by the action of 
water, wind, or gravity.  [40.19 s. 7] 
    Subd. 6.  [EXCESSIVE SOIL LOSS.] "Excessive soil loss" 
means soil loss that is greater than the soil loss limits.  
Excessive soil loss may be evidenced by sedimentation on 
adjoining land or in a body of water.  [40.19 s. 7a] 
    Subd. 7.  [LAND OCCUPIER.] "Land occupier" means a person, 
firm, corporation, municipality, or other legal entity that 
holds title to or is in possession of lands, as owner, lessee, 
or otherwise.  "Land occupier" includes both the owner and the 
occupier of the land if they are not the same.  [40.19 s. 9] 
    Subd. 8.  [LOCAL GOVERNMENT.] "Local government" means the 
elected governing body of a county, home rule charter or 
statutory city, or town, or their designated agents.  Agents may 
include soil and water conservation districts, water management 
organizations, joint powers boards, watershed districts, and 
other governmental entities responsible for resource management 
within the local government's jurisdiction.  [40.19 s. 9a] 
    Subd. 9.  [SEDIMENT.] "Sediment" means solid mineral or 
organic material that is in suspension, is being transported, or 
has been moved from its original location by air, water, 
gravity, or ice, and has been deposited at another location.  
[40.19 s. 11] 
    Subd. 10.  [SOIL.] "Soil" means the unconsolidated mineral 
and organic material on the immediate surface of the earth that 
serves as natural medium for the growth of land plants.  [40.19 
s. 11a] 
    Subd. 11.  [SOIL LOSS LIMIT.] "Soil loss limit" means the 
maximum amount of soil loss from water or wind erosion, 
expressed in tons per acre per year, that is allowed by local 
regulations on a particular soil.  [40.19 s. 13] 
    Subd. 12.  [TECHNICAL GUIDE.] "Technical guide" means the 
guide developed by the United States Soil Conservation Service 
and adopted by soil and water conservation districts containing 
technical information including methods and procedures by which 
the various types of erosion can be measured, and conservation 
practice standards and specifications required in the 
application of soil and water conservation practices.  [40.19 s. 
16] 
    Sec. 58.  [103F.405] [SOIL LOSS ORDINANCES.] 
    Subdivision 1.  [AUTHORITY.] Each statutory or home rule 
charter city, town, or county that has planning and zoning 
authority under sections 366.10 to 366.19, 394.21 to 394.37, or 
462.351 to 462.365 is encouraged to adopt a soil loss 
ordinance.  The soil loss ordinance must use the soil loss 
tolerance for each soil series described in the United States 
Soil Conservation Service Field Office Technical Guide to 
determine the soil loss limits, but the soil loss limits must be 
attainable by the best practicable soil conservation practice.  
Ordinances adopted by local governments within the metropolitan 
area defined in section 473.121 must be consistent with local 
water management plans adopted under section 473.879.  [40.20] 
    Subd. 2.  [AGENTS OF LOCAL GOVERNMENTS.] A local government 
that adopts a soil loss ordinance may enter an agreement with 
its agent allowing the agent to administer the functions and 
perform the duties of the local government as provided by 
sections 57 to 68.  [40.20] 
    Sec. 59.  [103F.411] [MODEL ORDINANCE.] 
    Subdivision 1.  [AUTHORITY.] The board of water and soil 
resources, in consultation with counties, soil and water 
conservation districts, and other appropriate agencies, shall 
adopt a model ordinance and rules that serve as a guide for 
local governments to implement sections 57 to 68 and provide 
administrative procedures for the board for sections 57 to 68.  
[40.21 s. 1] 
    Subd. 2.  [MODEL ORDINANCE.] The model ordinance must 
specify the technical and administrative procedures required to 
control soil loss and erosion.  The model ordinance is the 
minimum regulation to be adopted.  The model ordinance must use 
the soil loss tolerance for each soil series described in the 
United States Soil Conservation Service Field Office Technical 
Guide to determine soil loss limits, but the soil loss limits 
must be attainable by the best practicable soil conservation 
practice.  [40.21 s. 2] 
    Subd. 3.  [PERIODIC REVIEW.] At least once every five years 
the board shall review the rules and model ordinance in 
cooperation with counties, soil and water conservation 
districts, and appropriate agencies to ensure their continued 
applicability and relevance.  [40.21 s. 3] 
    Sec. 60.  [103F.415] [EXCESSIVE SOIL LOSS PROHIBITED.] 
    Subdivision 1.  [PROHIBITED ACTIVITIES.] A person may not 
cause, conduct, contract for, or authorize an activity that 
causes excessive soil loss.  [40.22 s. 1] 
    Subd. 2.  [AGRICULTURAL LAND.] A land occupier of 
agricultural land is not violating subdivision 1 if the occupier 
is farming by methods that implement the best practicable 
conservation practices.  [40.22 s. 2] 
    Subd. 3.  [WOODLAND.] A land occupier who uses wooded land 
for pasture must ensure that proper management is used to 
prevent excessive soil loss due to overgrazing or cattle paths.  
[40.22 s. 3] 
    Sec. 61.  [103F.421] [ENFORCEMENT.] 
    Subdivision 1.  [COMPLAINT.] (a) An adversely affected 
landowner, an elected or appointed official of the local 
government, or a soil and water conservation district board 
member may submit a written complaint to the local government if 
conditions exist that indicate there is excessive soil loss from 
a tract of land that affects another tract of land or body of 
water.  The written complaint must contain:  
    (1) the name and address of the landowner whose land is 
causing excessive soil loss; 
    (2) the location of the tract of land with the excessive 
soil loss; 
    (3) a description of land or water that is affected by the 
excessive soil loss; and 
    (4) a description of the nature of the excessive soil loss 
and resulting sedimentation.  
    (b) The local government shall submit the complaint to the 
soil and water conservation district for soil loss determination.
[40.23 s. 1] 
    Subd. 2.  [DISTRICT DETERMINATION OF SOIL LOSS.] (a) The 
soil and water conservation district shall determine the average 
soil loss in tons per acre per year of the tract of land cited 
in the complaint. 
    (b) Representatives of the soil and water conservation 
district may enter public or private land to make an inspection 
for the determination of soil loss or to complete the report 
required by paragraph (c).  The landowners must be notified of 
the time of the inspection and be given an opportunity to be 
present when the inspection is made.  
    (c) The soil and water conservation district shall submit a 
report to the local government that states the average soil loss 
in tons per acre per year for each tract of land and whether the 
soil loss is excessive under the applicable soil loss limits.  
If the soil loss is excessive the report must include 
identification of existing management practices and a 
conservation plan and time schedule that will prevent excessive 
soil loss or reduce the soil loss to the most practicable extent.
[40.23 s. 2] 
    Subd. 3.  [MEDIATION.] (a) If the soil and water 
conservation district report shows that soil loss from the tract 
of land is excessive and alternative practices are available to 
reduce the soil loss, the local government shall request the 
allegedly offending landowner to participate in mediation with 
the local government.  
    (b) The local government may appoint the planning and 
zoning director, a planning commissioner, or other county 
official to act as a mediator.  The local government may also 
contract with a mediation center to provide mediation services. 
    (c) The landowner and the local government or its agent 
must attempt to agree on conservation practices and times to 
implement the practice that will reduce soil loss to the local 
soil loss limits. 
    (d) A mediated settlement must be in writing and filed with 
the local government.  
    (e) If the local government and the landowner do not agree 
to a mediated settlement, or if the landowner refuses to 
participate in mediation, the local government shall forward the 
complaint to the county attorney.  The county attorney may 
dismiss the complaint or petition for a hearing under section 
62.  [40.23 s. 3] 
    Subd. 4.  [APPLICATION FOR COST-SHARING FUNDS.] The 
landowner has 90 days after a mediated settlement is filed to 
apply for state cost-sharing funds that will provide 75 percent 
of the cost of the permanent conservation practices.  Only 50 
percent of the cost share will be provided if the application is 
not made within 90 days after the settlement is filed.  The 
landowner must apply for 50 percent of the cost share within 270 
days after the mediated settlement is filed.  [40.23 s. 4] 
    Subd. 5.  [PENALTY.] A landowner that does not comply with 
the provisions of the mediated settlement is subject to a civil 
penalty up to $500.  Soil conservation practices that are made 
in good faith and substantial compliance are a complete defense. 
[40.23 s. 5] 
    Sec. 62.  [103F.425] [DISTRICT COURT HEARING.] 
    Subdivision 1.  [DETERMINATION OF PROPER CONSERVATION 
PLAN.] If the landowner and the local government do not agree to 
a mediated settlement or if the landowner has refused mediation, 
the county attorney may petition the district court for a 
hearing.  The landowner shall have the opportunity to present 
the landowner's conservation plan and time schedule as an 
alternative to the local government conservation plan and time 
schedule.  The court shall order the landowner to implement the 
conservation plan and time schedule that is the least burdensome 
to the landowner and will reduce soil loss to at least the soil 
loss limit.  The court may amend the local government's or 
landowner's conservation plan and time schedule, or develop a 
new conservation plan and time schedule.  The court shall set 
times to implement, make satisfactory progress, and complete the 
conservation plan.  [40.242 s. 1] 
    Subd. 2.  [COST-SHARING FUNDS.] (a) If the court orders 
implementation of the landowner's conservation plan and time 
schedule, or amends the conservation plan and time schedule, or 
if the court develops a new conservation plan and time schedule, 
the landowner is eligible to apply for 75 percent cost-share 
funds for permanent conservation practices.  The landowner must 
apply for the cost share within 90 days after the court order. 
If the landowner does not apply within 90 days for the 
cost-sharing funds the cost share is reduced to 50 percent.  The 
court shall establish a time after which the landowner is no 
longer eligible for cost-sharing funds if an application is not 
made.  
    (b) If the court orders a plan and time schedule developed 
by the district in its report, the landowner is eligible for 50 
percent cost share if the landowner applies within 90 days after 
the court order.  [40.242 s. 2] 
    Sec. 63.  [103F.431] [SOIL AND WATER CONSERVATION 
ASSISTANCE.] 
    A landowner who has filed a mediated settlement under 
section 61 or who has received a court order under section 62 
may request the soil and water conservation district to assist 
in the planning, design, and application of practices necessary 
to reduce soil loss to the applicable soil loss limit amounts or 
to the greatest practical extent.  The soil and water 
conservation district must give the landowner a high priority 
for technical and cost-sharing assistance.  [40.244] 
    Sec. 64.  [103F.435] [ATTORNEY AND LOCAL GOVERNMENT MAY 
PERFORM DUTY OF COUNTY.] 
    The city attorney or town attorney may perform the duties 
of a county attorney.  A city or town may perform the duties of 
a local government only if the city or town adopts a soil loss 
ordinance and the land specified in the complaint is located 
within the city or town.  [40.246] 
    Sec. 65.  [103F.441] [EROSION CONTROL PLAN FOR DEVELOPMENT 
ACTIVITIES.] 
    Subdivision 1.  [SEDIMENTATION CONTROL PLAN.] (a) A person 
engaged in a development activity that will disturb over one 
acre of land must submit a sedimentation control plan and time 
schedule that will prevent excessive soil loss to the local 
government having jurisdiction over the land before the 
development activity is to begin.  
    (b) A sedimentation control plan and time schedule must 
specify how the movement of soil and damage to other property 
during the construction will be minimized, including the use of 
temporary seeding, fiber mats, plastic, straw, mulch, sediment 
control basins, and other measures to prevent erosion and 
sediment damage.  The time schedule must establish deadlines for 
the implementation and completion of each phase or element of 
the sedimentation control plan.  [40.25 s. 1] 
    Subd. 2.  [PERMIT REQUIRED.] The local government may 
appoint the zoning and planning director, building inspector, 
county engineer, or the soil and water conservation district to 
review the plan and time schedule.  If the sedimentation control 
plan and time schedule will prevent excessive soil loss to the 
most practicable extent, the local government must issue a 
permit that authorizes the development activity contingent upon 
the implementation and completion of the sedimentation control 
plan.  [40.25 s. 2] 
    Subd. 3.  [PENALTY.] A person engaged in a development 
activity who does not obtain a sedimentation control plan permit 
or does not commence or complete the plan or make satisfactory 
progress to complete the plan is subject to a civil penalty.  
Soil conservation practices made in good faith and substantial 
compliance are a defense.  [40.25 s. 3] 
    Subd. 4.  [APPLICATION.] For counties, the provisions of 
this section apply only to county jurisdiction over 
unincorporated areas.  [40.25 s. 4] 
    Sec. 66.  [103F.445] [COST-SHARING FUNDS.] 
    Subdivision 1.  [COST-SHARE REQUIRED.] Except for a 
development activity, a land occupier may not be required to 
establish soil conservation practices unless state cost-sharing 
funds have been specifically approved for that land and have 
been made available to the land occupier under sections 61 and 
62, equal to at least 75 percent of the cost of the permanent 
conservation practices on a voluntary basis, or a 50 percent 
cost-share if an application for cost-share is not made within 
90 days after the board approves a mediated written agreement or 
within 90 days after the court orders implementation of a plan 
and time schedule prepared by the landowner or the court.  For 
mediated settlements, a court order that implements the 
landowner's alternatives or the court's alternatives must state 
the time schedule for application for 50 percent cost-share.  If 
the court orders implementation of the district's plan and time 
schedule, a landowner is eligible only for 50 percent 
cost-share.  [40.26 s. 1] 
    Subd. 2.  [REVIEW OF REQUIREMENTS.] The board of water and 
soil resources shall review these requirements at least once 
each year, and may authorize a district to provide a higher 
percentage of cost-sharing than is required by this section.  To 
aid in this determination, the board may consider the location 
of the affected area in relation to the priority areas as 
established in the soil and water conservation district annual 
and long-range plans.  [40.26 s. 2] 
    Subd. 3.  [RECORDING.] The permanent conservation practices 
must be recorded with the county recorder on the tracts where 
they occur if the cost-sharing funds are issued to the landowner.
[40.26 s. 3] 
    Sec. 67.  [103F.451] [APPLICABILITY.] 
    The provisions of sections 60 to 68 are not applicable 
without the adoption of an ordinance by the county or local 
government unit.  [40.27] 
    Sec. 68.  [103F.455] [PENALTY.] 
    A person who violates section 60, subdivision 1, is subject 
to a civil penalty up to $500.  [40.28] 
     Sec. 69.  [103F.460] [ENVIRONMENTAL AGRICULTURAL EDUCATION 
PROGRAM.] 
    Subdivision 1.  [PROGRAM.] An environmental agricultural 
program is established:  
    (1) to work with agricultural producers; 
    (2) to advise and inform agricultural producers on the 
impact of certain farming practices on water quality; 
    (3) to promote sustainable agriculture through use of best 
management practices and integrated pest management; 
    (4) to demonstrate and evaluate alternative pesticide 
practices; and 
    (5) to develop and promote farm profitability through a 
reduction in farm inputs.  
    Subd. 2.  [CONTRACTS.] Contracts to carry out the program 
must be awarded by the board of water and soil resources 
following review by the legislative water commission.  [40.31] 

                   REINVEST IN MINNESOTA RESOURCES ACT
    Sec. 70.  [103F.501] [SHORT TITLE.] 
    Sections 71 to 77 may be cited as the "reinvest in 
Minnesota resources law."  [40.40] 
    Sec. 71.  [103F.505] [PURPOSE AND POLICY.] 
    It is the purpose of sections 71 to 77 to keep certain 
marginal agricultural land out of crop production to protect 
soil and water quality and support fish and wildlife habitat.  
It is state policy to encourage the retirement of marginal, 
highly erodible land, particularly land adjacent to public 
waters and drainage systems, from crop production and to 
reestablish a cover of perennial vegetation.  [40.41] 
    Sec. 72.  [103F.511] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 71 to 78.  [40.42 s. 1] 
    Subd. 2.  [BOARD.] "Board" means the board of water and 
soil resources.  [40.42 s. 2] 
    Subd. 3.  [CONSERVATION EASEMENT.] "Conservation easement" 
means a conservation easement as defined in section 84C.01.  
[40.42 s. 3] 
    Subd. 4.  [CONSERVATION RESERVE PROGRAM.] "Conservation 
reserve program" means the program established under section 
73.  [40.42 s. 4] 
    Subd. 5.  [DRAINED WETLAND.] "Drained wetland" means a 
former natural wetland that has been altered by draining, 
dredging, filling, leveling, or other manipulation sufficient to 
render the land suitable for agricultural crop production.  The 
alteration must have occurred before December 23, 1985, and must 
be a legal alteration as determined by the commissioner of 
natural resources. 
    Subd. 6.  [LANDOWNER.] "Landowner" means individuals, 
family farms, family farm partnerships, authorized farm 
partnerships, family farm corporations and authorized farm 
corporations as defined under section 500.24, subdivision 2, and 
estates and testamentary trusts, which either own eligible land 
or are purchasing eligible land under a contract for deed.  
[40.42 s. 5] 
    Subd. 7.  [MARGINAL AGRICULTURAL LAND.] "Marginal 
agricultural land" means land that is:  
    (1) composed of class IIIe, IVe, V, VI, VII, or VIII land 
as identified in the land capability classification system of 
the United States Department of Agriculture; or 
    (2) similar to land described under clause (1) and 
identified under a land classification system selected by the 
board.  [40.42 s. 6] 
    Subd. 8.  [PUBLIC WATERS.] "Public waters" means waters and 
wetlands as defined in article 7, section 2, and inventoried 
under article 7, section 13.  [40.42 s. 8] 
    Subd. 9.  [SENSITIVE GROUNDWATER AREA.] "Sensitive 
groundwater area" means a geographic area defined by natural 
features where there is a significant risk of groundwater 
degradation from activities conducted at or near the land 
surface.  These areas may be identified by mapping or other 
appropriate methods determined by the commissioner of natural 
resources and the board of water and soil resources.  Wellhead 
protection areas may be designated as a sensitive groundwater 
area.  [40.42 s. 6a, 9] 
    Subd. 10.  [WETLAND.] "Wetland" means land that has a 
predominance of hydric soils and that is inundated or saturated 
by surface or ground water at a frequency and duration 
sufficient to support, or that periodically does support, a 
predominance of hydrophytic vegetation typically adapted for 
life in saturated soil conditions.  [40.42 s. 7] 
    Subd. 11.  [WINDBREAK.] "Windbreak" means a strip or belt 
of trees, shrubs, or grass barriers at least six rows deep and 
within 300 feet of the right-of-way of a highway.  [40.42 s. 8] 
    Sec. 73.  [103F.515] [CONSERVATION RESERVE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The board, in 
consultation with the commissioner of agriculture and the 
commissioner of natural resources, shall establish and 
administer a conservation reserve program.  The board shall 
implement sections 71 to 77.  Selection of land for the 
conservation reserve program must be based on its potential for 
fish and wildlife production, reducing erosion, and protecting 
water quality.  [40.43 s. 1] 
    Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
conservation reserve program if the land meets the requirements 
of paragraphs (b) and (c).  
    (b) Land is eligible if the land: 
    (1) is marginal agricultural land; 
    (2) is adjacent to marginal agricultural land and is either 
beneficial to resource protection or necessary for efficient 
recording of the land description; 
    (3) consists of a drained wetland; 
    (4) is land that with a windbreak would be beneficial to 
resource protection; 
    (5) is land in a sensitive groundwater area; 
    (6) is cropland adjacent to public waters; 
    (7) is cropland adjacent to restored wetlands to the extent 
of up to four acres of cropland for each acre of wetland 
restored; 
    (8) is a woodlot on agricultural land; 
    (9) is abandoned building site on agricultural land, 
provided that funds are not used for compensation of the value 
of the buildings; or 
    (10) is land on a hillside used for pasture.  
    (c) Eligible land under paragraph (a) must: 
    (1) have been owned by the landowner on January 1, 1985, or 
be owned by the landowner, or a parent or other blood relative 
of the landowner, for at least one year before the date of 
application; 
    (2) be at least five acres in size, except for a windbreak, 
woodlot, or abandoned building site, or be a whole field as 
defined by the United States Agricultural Stabilization and 
Conservation Services; 
    (3) not be set aside, enrolled or diverted under another 
federal or state government program; and 
    (4) have been in agricultural crop production for at least 
two years during the period 1981 to 1985 except drained 
wetlands, woodlots, abandoned building sites, or land on a 
hillside used for pasture. 
    (d) The enrolled land of a landowner may not exceed 20 
percent of the average farm size in the county where the land is 
being enrolled according to the average farm size determined by 
the United States Department of Agriculture, Census of 
Agriculture.  
    (e) In selecting drained wetlands for enrollment in the 
program, the highest priority must be given to wetlands with a 
cropping history during the period 1976 to 1985. 
    (f) In selecting land for enrollment in the program, 
highest priority must be given to permanent easements that are 
consistent with the purposes stated in section 71.  [40.43 s. 2] 
    Subd. 3.  [CONSERVATION EASEMENTS.] The board may acquire 
conservation easements on eligible land.  An easement may be 
permanent or of limited duration.  An easement acquired on land 
for windbreak purposes, under subdivision 2, may be only of 
permanent duration.  An easement of limited duration may not be 
acquired if it is for a period less than 20 years.  The 
negotiation and acquisition of easements authorized by this 
section are exempt from the contractual provisions of chapter 
16B.  [40.43 s. 3] 
    Subd. 4. [NATURE OF PROPERTY RIGHTS ACQUIRED.] (a) A 
conservation easement must prohibit: 
    (1) alteration of wildlife habitat and other natural 
features, unless specifically approved by the board; 
    (2) agricultural crop production, unless specifically 
approved by the board for wildlife management purposes; 
    (3) grazing of livestock except, for agreements entered 
before the effective date of this act, grazing of livestock may 
be allowed only if approved by the board after consultation with 
the commissioner of natural resources, in the case of severe 
drought, or a local emergency declared under section 12.29; and 
    (4) spraying with chemicals or mowing, except as necessary 
to comply with noxious weed control laws or emergency control of 
pests necessary to protect public health. 
    (b) A conservation easement is subject to the terms of the 
agreement provided in subdivision 5. 
    (c) A conservation easement must allow repairs, 
improvements, and inspections necessary to maintain public 
drainage systems provided the easement area is restored to the 
condition required by the terms of the conservation easement.  
[40.43 s. 4] 
    Subd. 5.  [AGREEMENTS BY LANDOWNER.] The board may enroll 
eligible land in the conservation reserve program by signing an 
agreement in recordable form with a landowner in which the 
landowner agrees: 
    (1) to convey to the state a conservation easement that is 
not subject to any prior title, lien, or encumbrance; 
    (2) to seed the land subject to the conservation easement, 
as specified in the agreement, to establish and maintain 
perennial cover of either a grass-legume mixture or native 
grasses for the term of the easement, at seeding rates 
determined by the board; or to plant trees or carry out other 
long-term capital improvements approved by the board for soil 
and water conservation or wildlife management; 
    (3) to convey to the state a permanent easement for the 
wetland restoration; 
    (4) that other land supporting natural vegetation owned or 
leased as part of the same farm operation at the time of 
application, if it supports natural vegetation or has not been 
used in agricultural crop production, will not be converted to 
agricultural crop production or pasture; and 
    (5) that the easement duration may be lengthened through 
mutual agreement with the board in consultation with the 
commissioners of agriculture and natural resources if they 
determine that the changes effectuate the purpose of the program 
or facilitate its administration.  [40.43 s. 5] 
    Subd. 6.  [PAYMENTS FOR CONSERVATION EASEMENTS AND 
ESTABLISHMENT OF COVER.] (a) The board must make the following 
payments to the landowner for the conservation easement and 
agreement: 
    (1) to establish the perennial cover or other improvements 
required by the agreement, up to 75 percent of the total 
eligible cost not to exceed $75 per acre for limited duration 
easements, 100 percent of the total eligible cost not to exceed 
$100 per acre for perpetual easements, and 100 percent of the 
total eligible cost of wetland restoration not to exceed $300 
per acre; 
    (2) for the cost of planting trees required by the 
agreement, up to 75 percent of the total eligible cost not to 
exceed $200 per acre for limited duration easements, and 100 
percent of the total eligible cost not to exceed $300 per acre 
for perpetual easements; 
    (3) for a permanent easement, 70 percent of the township 
average equalized estimated market value of agricultural 
property as established by the commissioner of revenue at the 
time of easement application; 
    (4) for an easement of limited duration, 90 percent of the 
present value of the average of the accepted bids for the 
federal conservation reserve program, as contained in Public Law 
Number 99-198, in the relevant geographic area and on bids 
accepted at the time of easement application; or 
    (5) an alternative payment system for easements based on 
cash rent or a similar system as may be determined by the board. 
    (b) For hillside pasture conservation easements, the 
payments to the landowner in paragraph (a) for the conservation 
easement and agreement must be reduced to reflect the value of 
similar property.  [40.43 s. 6] 
    Subd. 7.  [EASEMENT RENEWAL.] When a conservation easement 
of limited duration expires, a new conservation easement and 
agreement for an additional period of not less than 20 years may 
be acquired by agreement of the board and the landowner, under 
the terms of this section.  The board may adjust payment rates 
as a result of renewing an agreement and conservation easement 
only after examining the condition of the established cover, 
conservation practices, and land values.  [40.43 s. 7] 
    Subd. 8.  [CORRECTION OF CONSERVATION EASEMENT BOUNDARY 
LINES.] To correct errors in legal descriptions for easements 
obtained that affect the ownership interests in the state and 
adjacent landowners, the board may, in the name of the state, 
with the approval of the attorney general, convey, without 
consideration, interests of the state necessary to correct legal 
descriptions of boundaries.  The conveyance must be by quitclaim 
deed or release in a form approved by the attorney general.  
[40.43 s. 8] 
     Subd. 9.  [ENFORCEMENT AND DAMAGES.] (a) A landowner who 
violates the term of a conservation easement or agreement under 
this section, or induces, assists, or allows another to do so, 
is liable to the state for treble damages if the trespass is 
willful, but liable for double damages only if the trespass is 
not willful.  The amount of damages is the amount needed to make 
the state whole or the amount the landowner has gained due to 
the violation, whichever is greater.  
    (b) Upon the request of the board, the attorney general may 
commence an action for specific performances, injunctive relief, 
damages, including attorney's fees, and any other appropriate 
relief to enforce sections 71 to 77 in district court in the 
county where all or part of the violation is alleged to been 
committed, or where the landowner resides or has a principal 
place of business.  [40.43 s. 9] 
    Sec. 74.  [103F.521] [COOPERATION AND TECHNICAL 
ASSISTANCE.] 
    Subdivision 1.  [COOPERATION.] In implementing sections 71 
to 77, the board must share information and cooperate with the 
department of agriculture, the department of natural resources, 
the pollution control agency, the United States Fish and 
Wildlife Service, the Agricultural Stabilization and 
Conservation Service and Soil Conservation Service of the United 
States Department of Agriculture, the Minnesota extension 
service, the University of Minnesota, county boards, and 
interested private organizations and individuals.  [40.44 s. 1] 
    Subd. 2.  [TECHNICAL ASSISTANCE.] (a) The board and the 
commissioners of agriculture and natural resources must provide 
necessary technical assistance to landowners enrolled in the 
conservation reserve program.  The commissioner of natural 
resources must provide technical advice and assistance to the 
board on: 
    (1) the form and content of the conservation easement and 
agreement; 
    (2) forestry and agronomic practices; and 
    (3) hydrologic and hydraulic design relating to the 
establishment and maintenance of permanent cover, or other 
conservation improvements.  
    (b) The commissioner of transportation must provide 
technical advice and assistance to the board and the 
commissioner of natural resources on the planting of windbreaks 
adjacent to highways.  
    (c) The board and the commissioners of agriculture and 
natural resources shall jointly prepare an informational booklet 
on the conservation reserve program and other state and federal 
programs for land acquisition, conservation, and retirement to 
be made available to eligible landowners and the general public. 
[40.44 s. 2] 
    Sec. 75.  [103F.525] [SUPPLEMENTAL PAYMENTS ON FEDERAL AND 
STATE CONSERVATION PROGRAMS.] 
    The board may supplement payments made under federal land 
retirement programs to the extent of available appropriations 
other than bond proceeds.  The supplemental payments must be 
used to establish perennial cover on land enrolled or increase 
payments for land enrollment in programs approved by the board, 
including the federal conservation reserve program and federal 
and state water bank program.  [40.44 s. 3] 
     Sec. 76.  [103F.526] [FOOD PLOTS IN WINDBREAKS.] 
    The board, in cooperation with the commissioner of natural 
resources, may authorize wildlife food plots on land with 
windbreaks.  [40.44 s. 4] 
    Sec. 77.  [103F.531] [RULEMAKING.] 
    The board may adopt rules to implement sections 71 to 77.  
The rules must include standards for tree planting so that 
planting does not conflict with existing electrical lines, 
telephone lines, rights-of-way, or drainage ditches.  [40.45] 
     Sec. 78.  [103F.535] [RESERVATION OF MARGINAL LAND AND 
WETLANDS.] 
    Subdivision 1.  [RESERVATION OF MARGINAL LAND AND 
WETLANDS.] Notwithstanding any other law, marginal land and 
wetlands are withdrawn from sale by the state unless use of the 
marginal land or wetland is restricted by a conservation 
easement as provided in this section.  This section does not 
apply to transfers of land by the board of water and soil 
resources to correct errors in legal descriptions under section 
73, subdivision 8, or to transfers by the commissioner of 
natural resources for:  
    (1) land that is currently in nonagricultural commercial 
use if a conservation easement would interfere with the 
commercial use; 
    (2) land in platted subdivisions; 
    (3) conveyances of land to correct errors in legal 
descriptions under section 84.0273; 
    (4) exchanges of nonagricultural land with the federal 
government, or exchanges of Class A, Class B, and Class C 
nonagricultural land with local units of government under 
sections 94.342, 94.343, 94.344, and 94.349; 
    (5) land transferred to political subdivisions for public 
purposes under sections 84.027, subdivision 10, and 94.10; and 
    (6) land not needed for trail purposes that is sold to 
adjacent property owners and lease holders under section 85.015, 
subdivision 1, paragraph (b).  
    Subd. 2.  [DELINEATION OF WETLAND OR MARGINAL LAND.] (a) 
Before state land is sold, the land must be submitted to the 
board of water and soil resources to determine and delineate the 
marginal land and wetlands to be reserved or restricted by a 
conservation easement.  The delineation of the reservation or 
conservation easement need not be by legal description and may 
be a description in general terms that identifies the marginal 
land or wetlands.  
    (b) Marginal land and wetlands may not be sold unless 
restricted by a conservation easement with the restrictions 
provided in section 73, subdivision 4, paragraphs (a) and (c), 
and other restrictions determined necessary by the board of 
water and soil resources.  
    Subd. 3.  [SCHOOL TRUST LAND.] If the sale of school trust 
land as defined in section 92.025 is restricted by a 
conservation easement and the restriction results in a reduction 
of the amount received from the sale, the commissioner of 
natural resources must determine the amount of the reduction.  
The amount of the reduction in sale price must be paid from 
appropriations to acquire conservation easements and shall be 
credited to the account to which the proceeds from the sale are 
credited.  
    Subd. 4.  [RELEASE AND ALTERATION OF CONSERVATION 
EASEMENT.] The board may alter, release, or terminate a 
conservation easement created under this section after 
consultation with the commissioners of agriculture and natural 
resources.  The board may alter, release, or terminate a 
conservation easement only if the board determines the public 
interests and general welfare are better served by the 
alteration, release, or termination.  [40.46] 

                           WATER BANK PROGRAM 
    Sec. 79.  [103F.601] [WATER BANK PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] (a) The commissioner of 
natural resources shall establish a water bank program of 
acquiring interests in land to preserve wetlands, whether or not 
the wetlands are included in the definition contained in article 
7, section 2, subdivision 18. 
    (b) The commissioner may: 
    (1) acquire title to wetlands under section 97A.145; or 
    (2) enter into easement agreements with property owners to 
preserve wetlands and other waters.  [105.392 s. 2] 
    Subd. 2.  [EASEMENT AGREEMENTS.] (a) The easement 
agreements must be conservation easements, as defined in section 
84C.01, paragraph (1).  The conservation easements may be 
possessory or nonpossessory if agreed upon by the property owner 
and the commissioner.  
     (b) The conservation easements must be: 
     (1) for a period of at least 20 years, with provision for 
renewal for at least 20-year periods; or 
    (2) permanent in duration.  
    (c) Highest priority must be given to property owners 
desiring to enter agreements for permanent easements.  
    (d) The commissioner may reexamine the payment rates at the 
beginning of a 20-year renewal period and adjust them after 
giving consideration to current land and crop values.  [105.392 
s. 2] 
    Subd. 3.  [EASEMENT AGREEMENT.] In the easement agreement 
between the commissioner and a property owner, the property 
owner must agree:  
    (1) to designate eligible wetland areas for placement into 
the water bank program, which may include wetlands covered by a 
federal or state government easement that allows agricultural 
use, together with adjacent areas as determined desirable by the 
commissioner; 
    (2) to place designated eligible wetland areas in the 
program for the period of the agreement; 
     (3) not to drain, burn, fill, or otherwise destroy the 
wetland character of the areas, or to use them for agricultural 
purposes, as determined by the commissioner; 
     (4) to implement the wetland conservation and development 
plan for the property in accordance with the agreement, unless a 
requirement of the agreement or plan is waived or changed by the 
commissioner; 
     (5) that upon violating the agreement during the time the 
property owner has control of the property covered by the 
agreement: 
     (i) to forfeit rights to further payments or grants under 
the agreement and to refund to the state payments or grants 
received under the agreement if the commissioner determines that 
the violation warrants termination of the agreement; or 
    (ii) to make refunds or accept payment adjustments the 
commissioner finds appropriate if the commissioner determines 
that the violation by the owner does not warrant termination of 
the agreement; 
     (6) not to adopt a practice specified by the commissioner 
in an easement as a practice that would tend to defeat the 
purposes of the easement; and 
     (7) to additional provisions that the commissioner 
determines are desirable and includes in the easement to 
implement the purposes of the program or to facilitate its 
administration.  [105.392 s. 3] 
     Subd. 4.  [CONSERVATION AND DEVELOPMENT ADVICE.] The 
commissioner must provide advice about conservation and 
development practices on the wetlands and adjacent areas to 
implement this section.  [105.392 s. 4] 
     Subd. 5.  [EASEMENT PAYMENTS.] The commissioner must make 
payments under this subdivision to the property owner for the 
water bank easement:  
     (1) for a permanent easement, 50 percent of the average 
equalized estimated market value of cropland in the township as 
established by the commissioner of revenue for the time period 
when the application is made; 
    (2) for an easement of limited duration, a lump sum payment 
equal to 65 percent of the value of the permanent easement value 
for the time period when the application is made; or 
    (3) an alternative payment system for easements based on 
cash rent or a similar system as may be determined by the 
commissioner.  [105.392 s. 4] 
    Subd. 6.  [CONVERSION TO PERMANENT EASEMENT.] A 
limited-term easement may be converted to a permanent easement 
or renewed at the end of the easement period for an additional 
20 years by mutual agreement of the commissioner and the 
property owner, subject to a rate redetermination by the 
commissioner.  [105.392 s. 5] 
    Subd. 7.  [CHANGE OF OWNERSHIP.] If the property owner 
sells or otherwise disposes of the ownership or right of 
occupancy of the property during the easement period, the new 
property owner must continue the easement under the same terms 
or conditions.  [105.392 s. 5] 
    Subd. 8.  [TERMINATION OR CHANGING AGREEMENT.] The 
commissioner may terminate an easement by mutual agreement with 
the property owner if the commissioner determines that the 
termination would be in the public interest, and may agree to a 
modification of terms of the agreement that the commissioner 
determines desirable to implement the water bank program or 
facilitate its administration.  [105.392 s. 6] 
    Subd. 9.  [RULES.] The commissioner may adopt rules that 
include the procedures and payment rates to implement this 
section.  [105.392 s. 1] 

                        CLEAN WATER PARTNERSHIP 
    Sec. 80.  [103F.701] [CITATION.] 
    Sections 80 to 92 may be cited as the "clean water 
partnership law."  [115.091] 
    Sec. 81.  [103F.705] [PURPOSE.] 
    (a) It is the purpose of the legislature in enacting 
sections 80 to 92 to protect and improve surface and ground 
water in the state, through financial and technical assistance 
to local units of government to control water pollution 
associated with land use and land management activities. 
    (b) It is also the purpose of the legislature to: 
    (1) identify water quality problems and their causes; 
    (2) direct technical and financial resources to resolve 
water quality problems and to abate their causes; 
    (3) provide technical and financial resources to local 
units of government for implementation of water quality 
protection and improvement projects; 
    (4) coordinate a nonpoint source pollution control program 
with elements of the existing state water quality program and 
other existing resource management programs; and 
    (5) provide a legal basis for state implementation of 
federal laws controlling nonpoint source water pollution.  
[115.092] 
    Sec. 82.  [103F.711] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 80 to 92.  [115.093 s. 1] 
    Subd. 2.  [AGENCY.] "Agency" means the pollution control 
agency. [115.093 s. 2] 
    Subd. 3.  [BEST MANAGEMENT PRACTICES.] "Best management 
practices" means practices, techniques, and measures, that 
prevent or reduce water pollution from nonpoint sources by using 
the most effective and practicable means of achieving water 
quality goals.  Best management practices include, but are not 
limited to, official controls, structural and nonstructural 
controls, and operation and maintenance procedures.  [115.093 s. 
3] 
    Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
commissioner of the pollution control agency.  [115.093 s. 4] 
    Subd. 5.  [LOCAL UNIT OF GOVERNMENT.] "Local unit of 
government" means a statutory or home rule charter city, town, 
county, soil and water conservation district, watershed 
district, an organization formed for the joint exercise of 
powers under section 471.59, and any other special purpose 
district or authority exercising authority in water and related 
land resources management at the local level.  [115.093 s. 5] 
    Subd. 6.  [NONPOINT SOURCE.] "Nonpoint source" is a land 
management activity or land use activity that contributes or may 
contribute to ground and surface water pollution as a result of 
runoff, seepage, or percolation and that is not defined as a 
point source in section 115.01, subdivision 15.  Nonpoint 
sources include rural and urban land management activities and 
land use activities and specialty land use activities such as 
transportation.  [115.093 s. 6] 
    Subd. 7.  [OFFICIAL CONTROLS.] "Official controls" means 
ordinances and regulations that control the physical development 
of the whole or part of a local government unit or that 
implement the general objectives of the local government unit.  
[115.093 s. 7] 
    Subd. 8.  [PROJECT.] "Project" means the diagnostic study 
of water pollution caused by nonpoint sources of water 
pollution, a plan to implement best management practices, and 
the physical features constructed or actions taken by a local 
unit of government to implement best management practices.  
[115.093 s. 8] 
    Subd. 9.  [WATER POLLUTION.] "Water pollution" means water 
pollution as defined in section 115.01, subdivision 5.  [115.093 
s. 9] 
    Subd. 10.  [WATERS OF THE STATE.] "Waters of the state" 
means waters as defined in section 115.01, subdivision 9.  
[115.093 s. 10] 
    Sec. 83.  [103F.715] [CLEAN WATER PARTNERSHIP PROGRAM 
ESTABLISHED.] 
    A clean water partnership program is established as 
provided in sections 80 to 92.  The agency shall administer the 
program in accordance with these sections.  As a basis for the 
program, the agency and the metropolitan council shall conduct 
an assessment of waters in accordance with section 84.  The 
agency shall then provide financial and technical assistance in 
accordance with section 85 to local units of government for 
projects in geographical areas that contribute to surface or 
ground water flows.  The projects shall provide for protection 
and improvement of surface and ground water from nonpoint 
sources of water pollution.  [115.094] 
    Sec. 84.  [103F.721] [STATEWIDE RESOURCE ASSESSMENT.] 
    The agency shall conduct an assessment of waters of the 
state that have been polluted by nonpoint sources and of 
geographical areas with waters of the state that have a high 
potential for water pollution caused by nonpoint sources.  The 
metropolitan council shall conduct the assessment in the 
metropolitan area, as defined in section 473.121, subdivision 2, 
in cooperation with the agency.  [115.095] 
    Sec. 85.  [103F.725] [FINANCIAL AND TECHNICAL ASSISTANCE.] 
    Subdivision 1.  [FINANCIAL ASSISTANCE.] (a) The agency may 
award grants for up to 50 percent of the eligible cost for: 
    (1) the development of a diagnostic study and 
implementation plan; and 
    (2) the implementation of that plan.  
    (b) The agency shall determine which costs are eligible 
costs and grants shall be made and used only for eligible costs. 
[115.096 s. 1] 
    Subd. 2.  [TECHNICAL ASSISTANCE.] The agency may provide 
technical assistance to local units of government to ensure 
efficient and effective development and implementation of 
projects and coordination of projects with other water 
management activities.  [115.096 s. 2] 
    Sec. 86.  [103F.731] [ELIGIBILITY FOR ASSISTANCE.] 
    Subdivision 1.  [GENERALLY.] To be eligible for the 
financial or technical assistance or both as provided in section 
85, a local unit of government applying for assistance must: 
     (1) have authority to coordinate and enter into contracts 
with local, state, and federal agencies and private 
organizations, raise funds, and adopt and enforce official 
controls; and 
     (2) provide the agency with those documents required in 
subdivision 2.  [115.097 s. 1] 
    Subd. 2.  [DOCUMENTS REQUIRED.] (a) An applicant for 
assistance shall submit the following to the agency: 
    (1) an application form as prescribed by the agency; 
    (2) evidence that the applicant has consulted with the 
local soil and water conservation districts and watershed 
districts, where they exist, in preparing the application; and 
    (3) one of the following documents: 
    (i) the comprehensive water plan authorized under article 
2, sections 17 to 28; 
    (ii) a surface water management plan required under article 
2, section 11; 
    (iii) an overall plan required under chapter 103D; or 
    (iv) any other local plan that provides an inventory of 
existing physical and hydrologic information on the area, a 
general identification of water quality problems and goals, and 
that demonstrates a local commitment to water quality protection 
or improvement.  
    (b) After July 1, 1991, only projects that are a part of, 
or are responsive to, a local water plan under the comprehensive 
local water management act, chapter 103D, or article 2, sections 
7 to 16, will be eligible under paragraph (a), clause (3). 
    (c) The document submitted in compliance with paragraph 
(a), clause (2), must identify existing and potential nonpoint 
source water pollution problems and must recognize the need and 
demonstrate the applicant's commitment to abate or prevent water 
pollution from nonpoint sources in the geographic areas for 
which the application is submitted.  [115.097 s. 2] 
    Sec. 87.  [103F.735] [AGENCY REVIEW OF APPLICATIONS.] 
    Subdivision 1.  [RANKING OF APPLICATIONS.] The agency shall 
rank applications for technical and financial assistance in 
order of priority and shall, within the limits of available 
appropriations, grant those applications having the highest 
priority.  The agency shall by rule adopt appropriate criteria 
to determine the priority of projects.  [115.098] 
    Subd. 2.  [CRITERIA.] (a) The criteria shall give the 
highest priority to projects that best demonstrate compliance 
with the objectives in paragraphs (b) to (e). 
    (b) The project demonstrates participation, coordination, 
and cooperation between local units of government and other 
public agencies, including soil and water conservation districts 
or watershed districts, or both those districts. 
    (c) The degree of water quality improvement or protection 
is maximized relative to the cost of implementing the best 
management practices. 
    (d) Best management practices provide a feasible means to 
abate or prevent nonpoint source water pollution. 
    (e) The project goals and objectives are consistent with 
the state water quality management plans, the statewide resource 
assessment conducted under section 84, and other applicable 
state and local resource management programs.  [115.098] 
    Sec. 88.  [103F.741] [PLAN IMPLEMENTATION.] 
    Subdivision 1.  [IMPLEMENTATION ACCORDING TO LAW AND 
CONTRACT.] A local unit of government receiving technical or 
financial assistance or both from the agency shall carry out the 
implementation plan approved by the agency according to the 
terms of the plan, the provisions of a contract or grant 
agreement made with the agency and according to sections 80 to 
92, the rules of the agency, and applicable federal 
requirements.  [115.099 s. 1] 
    Subd. 2.  [REVIEW BY AGENCY.] The commissioner or the 
commissioner's designee may, at any reasonable time, inspect any 
project and review the expenditure of financial assistance funds 
granted by the agency to determine whether the local unit of 
government has complied with subdivision 1.  [115.099 s. 2] 
    Subd. 3.  [ENFORCEMENT OF AGREEMENTS.] The agency may bring 
a civil action in district court to recover from a local 
governmental unit any financial assistance funds used in 
violation of subdivision 1.  [115.099 s. 3] 
    Sec. 89.  [103F.745] [RULES.] 
    The agency shall adopt rules necessary to implement 
sections 80 to 92.  The rules shall contain at a minimum: 
    (1) procedures to be followed by local units of government 
in applying for technical or financial assistance or both; 
    (2) conditions for the administration of assistance; 
    (3) procedures for the development, evaluation, and 
implementation of best management practices; 
    (4) requirements for a diagnostic study and implementation 
plan; 
    (5) criteria for the evaluation and approval of a 
diagnostic study and implementation plan; 
    (6) criteria for the evaluation of best management 
practices; 
    (7) criteria for the ranking of projects in order of 
priority for assistance; 
    (8) criteria for defining and evaluating eligible costs and 
cost-sharing by local units of government applying for 
assistance; and 
    (9) other matters as the agency and the commissioner find 
necessary for the proper administration of sections 80 to 92, 
including any rules determined by the commissioner to be 
necessary for the implementation of federal programs to control 
nonpoint source water pollution.  [115.10] 
    Sec. 90.  [103F.751] [NONPOINT SOURCE POLLUTION CONTROL 
PLAN AND PROGRAM EVALUATION.] 
    To coordinate the programs and activities used to control 
nonpoint sources of pollution to achieve the state's water 
quality goals, the agency shall: 
    (1) develop a state plan for the control of nonpoint source 
water pollution to meet the requirements of the federal Clean 
Water Act; 
    (2) work through the environmental quality board to 
coordinate the activities and programs of federal, state, and 
local agencies involved in nonpoint source pollution control 
and, as appropriate, develop agreements with federal and state 
agencies to accomplish the purposes and objectives of the state 
nonpoint source pollution control plan; and 
    (3) evaluate the effectiveness of programs in achieving 
water quality goals and recommend to the legislature, under 
section 3.195, subdivision 1, any necessary amendments to 
sections 80 to 92.  [115.101] 
    Sec. 91.  [103F.755] [INTEGRATION OF DATA.] 
    The data collected for the activities of the clean water 
partnership program that have common value for natural resource 
planning must be provided and integrated into the Minnesota land 
management information system's geographic and summary data 
bases according to published data compatibility guidelines.  
Costs associated with this data delivery must be borne by this 
activity.  [115.102] 
    Sec. 92.  [103F.761] [PUBLIC AGENCY COORDINATION.] 
    Subdivision 1.  [PROJECT COORDINATION TEAM; MEMBERSHIP.] 
The commissioner shall establish and chair a project 
coordination team made up of representatives of the pollution 
control agency, department of natural resources, board of water 
and soil resources, department of agriculture, department of 
health, state planning agency, Minnesota extension service, 
University of Minnesota agricultural experiment stations, United 
States Army Corps of Engineers, United States Environmental 
Protection Agency, United States Department of Agriculture 
Agricultural Stabilization and Conservation Service, United 
States Department of Agriculture Soil Conservation Service, 
metropolitan council, Association of Minnesota Counties, League 
of Minnesota Cities, Minnesota Association of Townships, and 
other agencies as the commissioner may determine.  [115.103 s. 
1] 
    Subd. 2.  [DUTIES.] The project coordination team shall 
advise the agency in preparation of rules, evaluate projects, 
and recommend to the commissioner those projects that the team 
believes should receive financial or technical assistance or 
both from the agency.  After approval of assistance for a 
project by the agency, the team shall review project activities 
and assist in the coordination of the state program with other 
state and federal resource management programs.  [115.103 s. 2] 

                    LAKE PRESERVATION AND PROTECTION 
    Sec. 93.  [103F.801] [COUNTY LAKE IMPROVEMENT PROGRAM.] 
    Subdivision 1.  [LAKE IMPROVEMENT PROGRAM ESTABLISHED.] To 
preserve and protect lakes and to increase and enhance the use 
and enjoyment of lakes, a statewide lake improvement program is 
established to:  
    (1) preserve the natural character of lakes and their 
shoreland environment as feasible and practical; 
    (2) improve the quality of water in lakes; 
    (3) provide for reasonable assurance of water quantity in 
lakes, where feasible and practicable; and 
    (4) assure protection of the lakes from the detrimental 
effects of human activities and certain natural processes.  
[378.31 s. 1] 
    Subd. 2.  [AUTHORITY.] (a) A county board of a county has 
the authority given in this section with respect to bodies of 
water located entirely or partially within the boundaries of the 
county and not situated entirely within the boundaries of a 
single city or lake conservation district established by law.  
    (b) After approval by an affected city or lake conservation 
district, a county board may assume and exercise the authority 
given in this section with respect to bodies of water located 
entirely or partially within the city or lake conservation 
district.  
    (c) Programs undertaken pursuant to the authority given in 
this section must be consistent with the statewide water and 
related land resources plan prepared under the direction of the 
commissioner of natural resources, and with regional water and 
related resources plans.  
    (d) A body of water may not be improved under this section 
unless the public has access to some portion of the shoreline of 
the body of water.  [378.31 s. 2] 
    Subd. 3.  [POWERS.] The county boards shall have power to:  
[378.31 s. 2] 
    (1) acquire, in the name of the county, by gift or purchase 
or by condemnation under chapter 117, an existing dam or control 
works that may affect the level of waters; [378.31 s. 3] 
    (2) construct and operate water control structures if 
approved by the commissioner of natural resources under article 
7, sections 22 and 39; [378.31 s. 4] 
    (3) undertake projects to change the course current or 
cross section of public waters if approved by the commissioner 
of natural resources under article 7, sections 22 and 39; 
[378.31 s. 5] 
    (4) improve navigation and to acquire by gift or purchase 
land, equipment, or other facilities to improve navigation; 
[378.31 s. 5a] 
    (5) contract with a board of managers of a watershed 
district within the county or the board of supervisors of a soil 
and water conservation district within the county for 
improvements under chapters 103C and 103D; [378.31 s. 6] 
    (6) undertake research to determine the condition and 
development of the body of water and the water entering it and 
to transmit these studies to the pollution control agency and 
other interested authorities; [378.31 s. 7] 
    (7) conduct a program of water improvement and 
conservation; [378.31 s. 7] 
    (8) develop and implement the comprehensive plan to 
eliminate water pollution, provided that construction of any 
water, sewer, or water and sewer system shall be undertaken in 
the manner provided by section 444.075 or other applicable laws 
and not under this section; [378.31 s. 7] 
    (9) receive financial assistance from and join in projects 
or enter into contracts with federal and state agencies for the 
study and treatment of related pollution problems and 
demonstration programs; [378.31 s. 8] 
    (10) maintain public beaches, public docks, and other 
public facilities for access to a body of water; [378.31 s. 9] 
    (11) make cooperative agreements with the United States or 
state government or another county or city to implement the 
provisions of this section; and [378.31 s. 10] 
    (12) require projects to change the course, current, or 
cross section of public waters within unincorporated areas to be 
approved by the county board before submitting an application 
for a permit to the commissioner as required by article 7, 
sections 22 and 39.  [378.31 s. 11] 
    Subd. 4.  [FUNDING.] (a) The county board may appropriate 
money from the general revenue fund of the county to implement 
this section and article 2, sections 31 to 46.  [378.35 s. 1] 
    (b) The county board may apply for, receive, and disburse 
federal funds made available to the county by federal law or 
rules for any purpose related to the powers and duties of the 
county board.  The county board shall comply with requirements 
of federal law to apply for, receive, and disburse the funds.  
[378.35 s. 2] 
    (c) The county board may accept any donations or grants 
from any public or private concern.  The funds received by the 
county board must be deposited in the county treasury and 
appropriated for the purpose for which it was received.  [378.35 
s. 2] 
    Subd. 5.  [TAX LEVIES.] The county board may levy taxes to 
implement authority for water surface use regulation, lake 
improvement programs, and lake improvement districts on all 
taxable property within the county, which may be in addition to 
any amounts levied within a lake improvement district.  [378.34] 
    Sec. 94.  [103F.805] [STATE AID FOR LAKE IMPROVEMENTS.] 
    (a) The commissioner of natural resources, with the help of 
the pollution control agency and the commissioner of trade and 
economic development, must: 
    (1) assess the need for particular kinds of lake 
improvements, including improvements related to high or low 
water levels and any other resource management considerations, 
except pollution problems; and 
    (2) develop criteria for allocating state aid funds among 
proposed projects.  
    (b) The assessment must include provisions to ensure that 
any federal program of aid to local lake improvement projects 
reduces the local share of project costs and not only the 
state's share.  [105.484] 

                               ARTICLE 7 

                              CHAPTER 103G

                          WATERS OF THE STATE 

                           GENERAL PROVISIONS 
    Section 1.  [103G.001] [EFFECT OF CHAPTER 103G ON WATER 
LAW.] 
    Chapters 103A, 103B, 103C, 103D, 103E, 103F, and 103G 
constitute the water law of this state and may be cited as the 
water law.  
    Sec. 2.  [103G.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  [105.37 s. 1] 
    Subd. 2.  [ABANDON.] "Abandon" means to give up the use and 
maintenance of structures or improvements to realty and to 
surrender them to deterioration.  Abandon does not refer to 
intent to surrender or relinquish title to or a possessory 
interest in the real property where the structures or 
improvements are located.  [105.37 s. 8] 
    Subd. 3.  [ALTERED NATURAL WATERCOURSE.] "Altered natural 
watercourse" means a former natural watercourse that has been 
affected by artificial changes to straighten, deepen, narrow, or 
widen the original channel.  [105.37 s. 11] 
    Subd. 4.  [APPROPRIATING.] "Appropriating" means 
withdrawal, removal, or transfer of water from its source 
regardless of how the water is used.  [105.37 s. 5] 
    Subd. 5.  [ARTIFICIAL WATERCOURSE.] "Artificial 
watercourse" means a watercourse artificially constructed by 
human beings where a natural watercourse was not previously 
located.  [105.37 s. 12] 
    Subd. 6.  [BASIN OF ORIGIN.] "Basin of origin" means the 
drainage basin of the Great Lakes, the Red River of the North, 
the Mississippi River, or the Missouri River.  [105.37 s. 17] 
    Subd. 7.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources.  [105.37 s. 2] 
    Subd. 8.  [CONSUMPTIVE USE.] "Consumptive use" means water 
that is withdrawn from its source for immediate further use in 
the area of the source and is not directly returned to the 
source.  [105.37 s. 18] 
    Subd. 9.  [DIRECTOR.] "Director" means the director of the 
division of waters of the department of natural resources.  
[105.37 s. 4] 
    Subd. 10.  [DIVISION.] "Division" means the division of 
waters of the department of natural resources.  [105.37 s. 3] 
    Subd. 11.  [MEANDERED LAKE.] "Meandered lake" means a body 
of water except streams located within the meander lines shown 
on plats made by the United States General Land Office.  [105.37 
s. 13] 
    Subd. 12.  [MUNICIPALITY.] "Municipality" means a home rule 
charter or statutory city.  
    Subd. 13.  [NATURAL WATERCOURSE.] "Natural watercourse" 
means a natural channel that has definable beds and banks 
capable of conducting confined runoff from adjacent land.  
[105.37 s. 10] 
    Subd. 14.  [ORDINARY HIGH WATER LEVEL.] "Ordinary high 
water level" means the boundary of waterbasins, watercourses, 
public waters, and wetlands, and: 
    (1) the ordinary high water level is an elevation 
delineating the highest water level that has been maintained for 
a sufficient period of time to leave evidence upon the 
landscape, commonly the point where the natural vegetation 
changes from predominantly aquatic to predominantly terrestrial; 
    (2) for watercourses, the ordinary high water level is the 
elevation of the top of the bank of the channel; and 
    (3) for reservoirs and flowages the ordinary high water 
level is the operating elevation of the normal summer pool.  
[105.37 s. 16] 
    Subd. 15.  [PUBLIC WATERS.] (a) "Public waters" means:  
    (1) waterbasins assigned a shoreland management 
classification by the commissioner under article 6, sections 25 
to 29, except wetlands less than 80 acres in size that are 
classified as natural environment lakes; 
    (2) waters of the state that have been finally determined 
to be public waters or navigable waters by a court of competent 
jurisdiction; 
    (3) meandered lakes, excluding lakes that have been legally 
drained; 
    (4) waterbasins previously designated by the commissioner 
for management for a specific purpose such as trout lakes and 
game lakes pursuant to applicable laws; 
    (5) waterbasins designated as scientific and natural areas 
under section 84.033; 
    (6) waterbasins located within and totally surrounded by 
publicly owned lands; 
    (7) waterbasins where the state of Minnesota or the federal 
government holds title to any of the beds or shores, unless the 
owner declares that the water is not necessary for the purposes 
of the public ownership; 
    (8) waterbasins where there is a publicly owned and 
controlled access that is intended to provide for public access 
to the waterbasin; 
    (9) natural and altered watercourses with a total drainage 
area greater than two square miles; 
    (10) natural and altered watercourses designated by the 
commissioner as trout streams; and 
    (11) wetlands unless the statute expressly states otherwise.
    (b) Public waters are not determined exclusively by the 
proprietorship of the underlying, overlying, or surrounding land 
or by whether it is a body or stream of water that was navigable 
in fact or susceptible of being used as a highway for commerce 
at the time this state was admitted to the union.  [105.37 s. 
14] 
    Subd. 16.  [WATERBASIN.] "Waterbasin" means an enclosed 
natural depression with definable banks, capable of containing 
water, that may be partly filled with waters of the state and is 
discernible on aerial photographs.  [105.37 s. 9] 
    Subd. 17.  [WATERS OF THE STATE.] "Waters of the state" 
means surface or underground waters, except surface waters that 
are not confined but are spread and diffused over the land.  
"Waters of the state" includes boundary and inland waters.  
[105.37 s. 7] 
    Subd. 18.  [WETLANDS.] "Wetlands" means all types 3, 4, and 
5 wetlands, as defined in United States Fish and Wildlife 
Service Circular No. 39 (1971 edition), not included within the 
definition of public waters, that are ten or more acres in size 
in unincorporated areas or 2-1/2 or more acres in incorporated 
areas.  [105.37 s. 15] 

                        COMMISSIONER'S AUTHORITY 
    Sec. 3.  [103G.101] [WATER CONSERVATION PROGRAM.] 
    Subdivision 1.  [DEVELOPMENT.] The commissioner shall 
develop a water resources conservation program for the state.  
The program must include conservation, allocation, and 
development of waters of the state for the best interests of the 
people.  [105.39 s. 1] 
    Subd. 2.  [PROGRAM TO GUIDE PERMIT ISSUANCE AND DAMS.] The 
commissioner must be guided by the program in issuing permits 
for the use and appropriation of the waters of the state and the 
construction, reconstruction, repair, removal, or abandonment of 
dams, reservoirs, and other control structures.  [105.39 s. 1] 
    Sec. 4.  [103G.105] [COOPERATION WITH OTHER AGENCIES.] 
    Subdivision 1.  [COMMISSIONER MAY COOPERATE WITH OTHER 
STATES AND FEDERAL GOVERNMENT.] The commissioner may cooperate 
and enter into agreements with the United States government, a 
state department, or a state or country adjacent to this state 
to implement this chapter.  The commissioner may cooperate with 
departments of the government of the United States in the 
execution of surveys within the state.  [105.49] 
    Subd. 2.  [STATE AND LOCAL OFFICIALS MUST COOPERATE IN 
ENFORCEMENT.] Personnel of the pollution control agency, the 
health department, and county and municipal governments must 
cooperate with the commissioner in monitoring and enforcing 
water permits.  County attorneys, sheriffs, and other peace 
officers and other officers having enforcement authority must 
take all action to the extent of their authority, respectively, 
that may be necessary or proper for the enforcement of the 
provisions, rules, standards, orders, or permits specified in 
this chapter.  [105.49] 
    Sec. 5.  [103G.111] [REPRESENTATION OF STATE IN WATER 
ISSUES.] 
    Subdivision 1.  [COMMISSIONER TO APPEAR IN FEDERAL WATER 
ISSUES.] The commissioner may appear, represent, and act for the 
state in any matter relating to an application to be made to the 
federal government relating to waters of the state or their use 
and may act in a manner to protect the interests of the people 
of the state consistent with this chapter.  [105.50] 
    Subd. 2.  [DIRECTOR TO APPEAR FOR STATE IN WATER 
PROCEEDINGS.] The director may appear for the state in any 
matter or proceeding affecting waters of the state to give 
hydrologic and hydraulic engineering advice and information in 
connection with the proceeding.  [105.40 s. 13] 
    Sec. 6.  [103G.115] [ENJOINING WATERFLOW INTERFERENCE 
OUTSIDE OF STATE.] 
    If a person, firm, association, corporation, or a state or 
political subdivision, agency or commission of a state disturbs, 
obstructs, or interferes with the natural flow or condition of 
public waters beyond the boundaries of this state in a manner 
that seriously affects the public welfare and interests of this 
state, the commissioner may institute proceedings in behalf of 
this state in a court having jurisdiction to abate or enjoin the 
continuance of the disturbance, obstruction, or interference.  
[84.031] 
    Sec. 7.  [103G.121] [COMMISSIONER'S AUTHORITY TO 
INVESTIGATE AND CONSTRUCT PROJECTS.] 
    Subdivision 1.  [SURVEYS AND INVESTIGATIONS.] (a) The 
commissioner may conduct surveys, investigations, and studies, 
and prepare maps of the waters of the state and topography of 
the state to implement this chapter.  
    (b) Under the direction of the commissioner, the director 
shall be responsible for providing the surveys and engineering 
investigations required by this chapter.  [105.40 s. 1] [105.39 
s. 2] 
    Subd. 2.  [ACQUISITION OF PROPERTY INCLUDING BY EMINENT 
DOMAIN.] The commissioner may acquire title to private property 
for an authorized purpose by purchase or by eminent domain.  The 
use of property for projects to implement this chapter is a 
public purpose.  On request by the commissioner, the attorney 
general shall acquire title to private property for projects 
under this chapter as provided in chapter 117.  [105.39 s. 4] 
    Subd. 3.  [CONTRACTS.] The commissioner may approve 
contracts for projects under this chapter and change the plans 
of the projects when necessary, and supervise, control, and 
accept the projects when complete.  The commissioner may pay for 
projects and expenses incurred in connection with the projects 
from funds available to the commissioner.  [105.39 s. 5] 
    Sec. 8.  [103G.125] [DIRECTOR'S AUTHORITY.] 
    Subdivision 1.  [COOPERATION WITH GOVERNMENT AGENCIES.] The 
director shall cooperate with agencies and departments of the 
state and federal government relating to projects affecting 
waters of the state and shall make recommendations to the 
agencies involved and to the governor about the desirability, 
feasibility, and practicability of the proposed projects.  
[105.40 s. 8] 
    Subd. 2.  [COOPERATIVE AGREEMENTS.] The director, with 
approval of the commissioner, may make cooperative agreements 
with and cooperate with any person, corporation, or government 
authority to implement this chapter.  [105.40 s. 14] 
     Subd. 3.  [STANDARDS FOR FORMS AND MAPS.] The director may 
adopt rules to standardize forms and maps, sizes of maps, plats, 
drawings, and specifications in proceedings related to public 
waters.  [105.40 s. 11] 
    Sec. 9.  [103G.131] [VENUE OF CERTAIN ACTIONS.] 
    Subdivision 1.  [WATER LOCATED IN ONE COUNTY.] 
Notwithstanding any other law to the contrary, an action for 
declaratory judgment that is brought under chapter 555 by or 
against the commissioner must be venued in the county where the 
water, watercourse, or waterbasin is located, if the water, 
watercourse, or waterbasin is located in one county.  This 
section applies to actions to determine the validity of the 
commissioner's final decision regarding:  
     (1) the classification of waters of the state as public 
waters; or 
    (2) the drainage of waterbasins or watercourses as provided 
in chapter 103E.  [105.471] 
    Subd. 2.  [WATER LOCATED IN MORE THAN ONE COUNTY.] If the 
water, watercourse, or waterbasin is located in more than one 
county, then the venue is the judicial district where the 
majority of the water, watercourse, or waterbasin is located.  
[105.471] 
    Sec. 10.  [103G.135] [ENFORCEMENT OF COMMISSIONER'S 
ORDERS.] 
    Upon application of the commissioner, the district court of 
a county where a project is entirely or partially located may by 
injunction enforce compliance with, or restrain the violation 
of, an order of the commissioner made under this chapter, or 
restrain the violation of this chapter.  [105.55] 
    Sec. 11.  [103G.141] [PENALTIES.] 
    A person is guilty of a misdemeanor who: 
    (1) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state without previously 
obtaining a permit from the commissioner regardless of whether 
the commissioner would have granted a permit had an application 
been filed; 
    (2) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state in violation of or in 
excess of authority granted under a permit issued by the 
commissioner, regardless of whether an application had been 
filed for permission to perform the act involved, or whether the 
act involved would have been permitted had a proper application 
been filed; 
    (3) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state after a permit to 
undertake the project has been denied by the commissioner; or 
    (4) violates a provision of this chapter.  [105.541] 
     Sec. 12.  [103G.145] [APPLICATION.] 
    Nothing in this chapter supersedes or amends section 92.45. 

                   PUBLIC WATERS DESIGNATION AND USE 
    Sec. 13.  [103G.201] [PUBLIC WATERS INVENTORY.] 
    The commissioner shall prepare a public waters inventory 
map of each county that shows the waters of this state that are 
designated as public waters under the public waters inventory 
and classification procedures prescribed under Minnesota Laws 
1979, chapter 199.  The public waters inventory map for each 
county must be filed with the auditor of the county.  [105.391 
s.1] 
    Sec. 14.  [103G.205] [EFFECT OF PUBLIC WATERS DESIGNATION.] 
    The designation of waters of this state as public waters 
does not: 
    (1) grant the public additional or greater right of access 
to the waters; 
    (2) diminish the right of ownership or usage of the beds 
underlying the designated public waters; 
    (3) affect state law forbidding trespass on private lands; 
and 
    (4) require the commissioner to acquire access to the 
designated public waters under section 97A.141.  [105.391 s. 12] 
    Sec. 15.  [103G.211] [DRAINAGE OF PUBLIC WATERS GENERALLY 
PROHIBITED WITHOUT REPLACEMENT.] 
    Except as provided in sections 17 to 20, public waters may 
not be drained, and a permit authorizing drainage of public 
waters may not be issued, unless the public waters to be drained 
are replaced by public waters that will have equal or greater 
public value.  [105.391 s. 3] 
    Sec. 16.  [103G.215] [AGRICULTURAL USE OF PUBLIC WATERS 
DURING DROUGHT.] 
    A property owner may use the bed of public waters for 
pasture or cropland during periods of drought if: 
    (1) dikes, ditches, tile lines, or buildings are not 
constructed; and 
    (2) the agricultural use does not result in the drainage of 
the public waters.  [105.391 s. 10] 

                                WETLANDS 
    Sec. 17.  [103G.221] [DRAINAGE OF WETLANDS.] 
    Subdivision 1.  [DRAINAGE OF WETLANDS GENERALLY PROHIBITED 
WITHOUT REPLACEMENT.] Except as provided in subdivisions 2 and 
3, wetlands may not be drained, and a permit authorizing 
drainage of wetlands may not be issued, unless the wetlands to 
be drained are replaced by wetlands that will have equal or 
greater public value.  [105.391 s. 3] 
    Subd. 2.  [DRAINAGE OF WETLANDS FOR CROPLAND.] (a) Wetlands 
that are lawful, feasible, and practical to drain and if drained 
would provide high quality cropland and that is the projected 
land use, as determined by the commissioner, may be drained 
without a permit and without replacement of wetlands of equal or 
greater public value if the commissioner does not choose, within 
60 days of receiving an application for a permit to drain the 
wetlands to: 
    (1) place the wetlands in the state water bank program 
under article 6, section 79; or 
    (2) acquire them in fee under section 97A.145.  
    (b) If the commissioner does not make the offer under 
paragraph (a), clause (1) or (2), to a person applying for a 
permit, the wetlands may be drained without a permit.  [105.391 
s. 3] 
    Subd. 3.  [PERMIT TO DRAIN WETLANDS TEN YEARS AFTER PUBLIC 
WATERS DESIGNATION.] (a) The owner of property underneath 
wetlands on privately owned property may apply to the 
commissioner for a permit to drain the wetlands after ten years 
from their original designation as public waters.  After 
receiving the application, the commissioner shall review the 
status of the wetlands and current conditions.  
    (b) If the commissioner finds that the status of the 
wetlands and the current conditions make it likely that the 
economic or other benefits from agricultural use to the owner 
from drainage would exceed the public benefits of maintaining 
the wetlands, the commissioner shall grant the application and 
issue a drainage permit.  
    (c) If the application is denied, the owner may not apply 
again for another ten years.  [105.391 s. 3] 
    Sec. 18.  [103G.225] [STATE WETLANDS AND PUBLIC DRAINAGE 
SYSTEMS.] 
    If the state owns wetlands on or adjacent to existing 
public drainage systems, the state shall consider the use of the 
wetlands as part of the drainage system.  If the wetlands 
interfere with or prevent the authorized functioning of the 
public drainage system, the state shall provide for necessary 
work to allow proper use and maintenance of the drainage system 
while still preserving the wetlands.  [105.391 s. 11] 
    Sec. 19.  [103G.231] [PROPERTY OWNER'S USE OF WETLANDS.] 
    Subdivision 1.  [AGRICULTURAL USE DURING DROUGHT.] A 
property owner may use the bed of wetlands for pasture or 
cropland during periods of drought if: 
    (1) dikes, ditches, tile lines, or buildings are not 
constructed; and 
    (2) the agricultural use does not result in the drainage of 
the wetlands.  [105.391 s. 10] 
    Subd. 2.  [FILLING WETLANDS FOR IRRIGATION BOOMS.] A 
landowner may fill a wetland to accommodate wheeled booms on 
irrigation devices if the fill does not impede normal drainage.  
[105.391 s. 10] 
    Sec. 20.  [103G.235] [RESTRICTIONS ON ACCESS TO WETLANDS.] 
    To protect the public health or safety, local units of 
government may by ordinance restrict public access to wetlands 
from municipality, county, or township roads that abut wetlands. 
[105.391 s. 9] 

                      WORK AFFECTING PUBLIC WATERS 
    Sec. 21.  [103G.241] [CONTRACTOR'S RESPONSIBILITY WHEN WORK 
AFFECTS PUBLIC WATERS.] 
    Subdivision 1.  [CONDITIONS FOR EMPLOYEES AND AGENTS TO 
AFFECT PUBLIC WATERS.] An agent or employee of another may not 
construct, reconstruct, remove, make a change in a reservoir, 
dam, or waterway obstruction on a public water or in any manner 
change or diminish the course, current, or cross section of 
public waters unless the agent or employee has: 
    (1) obtained a signed statement from the property owner 
stating that the permits required for the work have been 
obtained or a permit is not required; and 
    (2) mailed a copy of the statement to the regional office 
of the department of natural resources where the proposed work 
is located.  [105.463] 
    Subd. 2.  [VIOLATION IS SEPARATE OFFENSE.] Violation of 
this section is a separate and independent offense from other 
violations of this chapter.  [105.463] 
    Subd. 3.  [FORM FOR COMPLIANCE WITH THIS SECTION.] The 
commissioner shall develop a form to be distributed to 
contractors' associations and county auditors to comply with 
this section.  The form must include:  
    (1) a listing of the activities for which a permit is 
required; 
    (2) a description of the penalties for violating this 
chapter; 
    (3) the mailing addresses and telephone numbers of the 
regional offices of the department of natural resources; 
    (4) a statement that water inventory maps completed 
according to section 13 are on file with the auditors of the 
counties; and 
    (5) spaces for a description of the work and the names, 
mailing addresses, and telephone numbers of the person 
authorizing the work and the agent or employee proposing to 
undertake it.  [105.463] 
    Sec. 22.  [103G.245] [WORK IN PUBLIC WATERS.] 
    Subdivision 1.  [PERMIT REQUIREMENT.] Except as provided in 
subdivisions 2, 11, and 12, the state, a political subdivision 
of the state, a public or private corporation, or a person must 
have a public waters work permit to: 
    (1) construct, reconstruct, remove, abandon, transfer 
ownership of, or make any change in a reservoir, dam, or 
waterway obstruction on public waters; or 
    (2) change or diminish the course, current, or cross 
section of public waters, entirely or partially within the 
state, by any means, including filling, excavating, or placing 
of materials in or on the beds of public waters.  [105.42 s. 1] 
    Subd. 2.  [EXCEPTIONS.] A public waters work permit is not 
required for: 
    (1) work in altered natural watercourses that are part of 
drainage systems established under chapter 103D or 103E if the 
work in the waters is undertaken according to chapter 103D or 
103E; or 
    (2) a drainage project for a drainage system established 
under chapter 103E that does not substantially affect public 
waters.  [105.42 s. 1] 
    Subd. 3.  [PERMIT APPLICATION.] Application for a public 
waters work permit must be in writing to the commissioner on 
forms prescribed by the commissioner.  [105.42 s. 1] 
    Subd. 4.  [STRUCTURES IN OR ADJACENT TO PUBLIC WATERS 
OUTSIDE CITIES.] The commissioner, subject to the approval of 
the county board, may grant and prescribe terms and conditions 
for granting public waters work permits to establish, construct, 
maintain, and control wharves, docks, piers, levees, 
breakwaters, basins, canals, and hangars in or adjacent to 
public waters of the state, except within the corporate limits 
of a municipality.  [105.42 s. 1] 
     Subd. 5.  [DELEGATION OF PERMIT AUTHORITY TO LOCAL UNITS OF 
GOVERNMENT.] The commissioner may adopt rules to identify 
classes of activities in waterbasins and classes of watercourses 
where the commissioner may delegate public waters work permit 
authority to the appropriate county or municipality.  The public 
waters work permit authority must be delegated under guidelines 
of the commissioner and the delegation must be done by agreement 
with the involved county or municipality and in compliance with 
section 37.  [105.42 s. 1a] 
     Subd. 6.  [CONFORMANCE WITH WATER AND RELATED LAND RESOURCE 
MANAGEMENT PLANS.] A public waters work permit may not be issued 
under this section if the project does not conform to state, 
regional, and local water and related land resources management 
plans.  [105.42 s. 1a] 
     Subd. 7.  [EFFECT ON ENVIRONMENT AND MITIGATION.] (a) A 
public waters work permit may be issued only if the project will 
involve a minimum encroachment, change, or damage to the 
environment, particularly the ecology of the waterway. 
    (b) If a major change in the resource is justified, public 
waters work permits must include provisions to compensate for 
the detrimental aspects of the change.  [105.42 s. 1a] 
    Subd. 8.  [EXCAVATION IN PUBLIC WATERS.] Public waters work 
permits for projects that involve excavation in the beds of 
public waters may be granted only if: 
     (1) the area where the excavation will take place is 
covered by a shoreland zoning ordinance approved by the 
commissioner; 
     (2) the work under the permit is consistent with the 
shoreland zoning ordinance; and 
    (3) the permit includes provisions for the deposition of 
excavated materials.  [105.42 s. 1a] 
    Subd. 9.  [PROJECT AFFECTING FLOODWATERS.] (a) A public 
waters work permit for a project affecting floodwaters may be 
granted only if: 
    (1) the area covered by the public waters work permit is 
governed by a floodplain management ordinance approved by the 
commissioner; and 
    (2) the conduct authorized by the public waters work permit 
is consistent with the floodplain management ordinance, if the 
commissioner has determined that enough information is available 
for the adoption of a floodplain ordinance. 
    (b) A public waters work permit involving the control of 
floodwaters by structural means, such as dams, dikes, levees, 
and channel improvements, may be granted only after the 
commissioner has considered all other flood damage reduction 
alternatives.  In developing a policy on placing emergency 
levees along the banks of public waters under emergency flood 
conditions, the commissioner shall consult and cooperate with 
the office of emergency services.  [105.42 s. 1a] 
    Subd. 10.  [CHANGE OF LEVEL OF PUBLIC WATERS.] (a) A public 
waters work permit that will change the level of public waters 
may not be issued unless: 
     (1) the shoreland adjacent to the waters to be changed is 
governed by a shoreland zoning ordinance approved by the 
commissioner; and 
     (2) the change in water level is consistent with the 
shoreland zoning ordinance. 
     (b) Standards and procedures for use in deciding the level 
of public waters must ensure that the rights of all persons are 
protected when public water levels are changed and must provide 
for: 
     (1) technical advice to persons involved; 
     (2) establishing alternatives to help local agencies 
resolve water level conflicts; and 
     (3) mechanics necessary for local resolution of water 
problems within the state guidelines.  [105.42 s. 1a] 
     Subd. 11.  [EMERGENCY REPAIRS.] (a) The owner of a dam, 
reservoir, control structure, or waterway obstruction may make 
repairs that are immediately necessary in case of emergency 
without a public waters work permit under subdivision 1.  The 
owner must immediately notify the commissioner of the emergency 
and of the emergency repairs being made.  The owner must apply 
for a public waters work permit for the emergency repairs and 
necessary permanent repairs as soon as practicable. 
    (b) This subdivision does not apply to routine maintenance 
not affecting the safety of the structures. 
    (c) If the commissioner declares there is an emergency and 
repairs or remedial action are immediately necessary to 
safeguard life and property, the repairs, remedial action, or 
both, must be started immediately by the owner.  [105.42 s. 2] 
    Subd. 12.  [OPERATION OF STRUCTURE PRIOR TO PERMIT 
REQUIREMENT.] The owner of a dam, reservoir, control structure, 
or waterway obstruction constructed before a public waters work 
permit was required by law must maintain and operate the dam, 
reservoir, control structure, or waterway obstruction in a 
manner approved and prescribed by rule by the commissioner.  
[105.42 s. 3] 
    Sec. 23.  [103G.251] [INVESTIGATION OF ACTIVITIES WITHOUT 
PERMIT.] 
    Subdivision 1.  [INVESTIGATIONS.] If the commissioner 
determines that an investigation is in the public interest, the 
commissioner may investigate activities being conducted without 
a permit that may affect public waters.  [105.462] 
    Subd. 2.  [FINDINGS AND ORDER.] (a) With or without a 
public hearing, the commissioner may make findings and issue 
orders related to activities being conducted without a permit 
that affect public waters as otherwise authorized under this 
chapter.  
    (b) A copy of the findings and order must be served on the 
person to whom the order is issued.  
    (c) If the commissioner issues the findings and order 
without a hearing, the person to whom the order is issued may 
file a demand for a hearing with the commissioner.  The demand 
for a hearing must be accompanied by the bond as provided in 
section 36, subdivision 6, and the hearing must be held in the 
same manner and with the same requirements as a hearing held 
under section 36, subdivision 5.  The demand for a hearing and 
bond must be filed by 30 days after the person is served with a 
copy of the commissioner's order.  
    (d) The hearing must be conducted as a contested case 
hearing under chapter 14.  
    (e) If the person to whom the order is addressed does not 
demand a hearing or demands a hearing but fails to file the 
required bond:  
    (1) the commissioner's order becomes final at the end of 30 
days after the person is served with the order; and 
    (2) the person may not appeal the order.  [105.462] 

                   WATER DIVERSION AND APPROPRIATION 
    Sec. 24.  [103G.255] [ALLOCATION AND CONTROL OF PUBLIC 
WATERS.] 
    The commissioner shall administer: 
    (1) the use, allocation, and control of public waters; 
    (2) the establishment, maintenance, and control of lake 
levels and water storage reservoirs; and 
    (3) the determination of the ordinary high water level of 
public waters.  [105.39 s. 3] 
    Sec. 25.  [103G.261] [WATER ALLOCATION PRIORITIES.] 
    (a) The commissioner shall adopt rules for allocation of 
waters based on the following priorities for the consumptive 
appropriation and use of water: 
    (1) first priority, domestic water supply, excluding 
industrial and commercial uses of municipal water supply, and 
use for power production that meets the contingency planning 
provisions of section 30, subdivision 6; 
    (2) second priority, a use of water that involves 
consumption of less than 10,000 gallons of water per day; 
    (3) third priority, agricultural irrigation, and processing 
of agricultural products involving consumption in excess of 
10,000 gallons per day; 
    (4) fourth priority, power production in excess of the use 
provided for in the contingency plan developed under section 30, 
subdivision 6; and 
    (5) fifth priority, other uses, involving consumption in 
excess of 10,000 gallons a day. 
     (b) For the purposes of this section, "consumption" means 
water withdrawn from a supply that is lost for immediate further 
use in the area. 
    (c) Appropriation and use of surface water from streams 
during periods of flood flows and high water levels must be 
encouraged subject to consideration of the purposes for use, 
quantities to be used, and the number of persons appropriating 
water. 
    (d) Appropriation and use of surface water from lakes of 
less than 500 acres in surface area must be discouraged. 
     (e) The treatment and reuse of water for nonconsumptive 
uses shall be discouraged. 
    (f) Diversions of water from the state for use in other 
states or regions of the United States or Canada must be 
discouraged.  [105.41 s. 1a] 
    Sec. 26.  [103G.265] [WATER SUPPLY MANAGEMENT.] 
    Subdivision 1.  [ASSURANCE OF SUPPLY.] The commissioner 
shall develop and manage water resources to assure an adequate 
supply to meet long-range seasonal requirements for domestic, 
municipal, industrial, agricultural, fish and wildlife, 
recreational, power, navigation, and quality control purposes 
from waters of the state.  [105.405 s. 1] 
    Subd. 2.  [DIVERSION GREATER THAN 2,000,000 GALLONS PER 
DAY.] A water use permit or a plan that requires a permit or the 
commissioner's approval, involving a diversion of waters of the 
state of more than 2,000,000 gallons per day average in a 30-day 
period, to a place outside of this state or from the basin of 
origin within this state may not be granted or approved until: 
    (1) a determination is made by the commissioner that the 
water remaining in the basin of origin will be adequate to meet 
the basin's water resources needs during the specified life of 
the diversion project; and 
    (2) approval of the diversion is given by the legislature.  
[105.405 s. 2] 
    Subd. 3.  [CONSUMPTIVE USE OF MORE THAN 2,000,000 GALLONS 
PER DAY.] (a) Except as provided in paragraph (b), a water use 
permit or a plan that requires a permit or the commissioner's 
approval, involving a consumptive use of more than 2,000,000 
gallons per day average in a 30-day period, may not be granted 
or approved until:  
    (1) a determination is made by the commissioner that the 
water remaining in the basin of origin will be adequate to meet 
the basin's water resources needs during the specified life of 
the consumptive use; and 
    (2) approval of the consumptive use is given by the 
legislature. 
    (b) Legislative approval under paragraph (a), clause (2), 
is not required for a consumptive use in excess of 2,000,000 
gallons per day average in a 30-day period for:  
    (1) a domestic water supply, excluding industrial and 
commercial uses of a municipal water supply; and 
    (2) agricultural irrigation and processing of agricultural 
products.  [105.405 s. 3] 
    Subd. 4.  [DIVERSION OR CONSUMPTIVE USE FROM GREAT LAKES 
GREATER THAN 5,000,000 GALLONS PER DAY.] (a) A water use permit 
or a plan that requires a permit or the commissioner's approval, 
involving a diversion or consumptive use of waters of the state 
from the Great Lakes water basin within this state where the 
diversion or consumptive use of waters would be more than 
5,000,000 gallons per day average in a 30-day period, may not be 
granted or approved until: 
    (1) the commissioner has notified and solicited comments on 
the proposed diversion or consumptive use from the offices of 
the governors of the Great Lakes states and premiers of the 
Great Lakes provinces, the appropriate water management agencies 
of the Great Lakes states and provinces, and the international 
joint commission; 
    (2) the commissioner has considered the comments and 
concerns of the offices, agencies, and commission to which 
notice was given under clause (1); and 
    (3) the diversion or consumptive use has been approved by 
the legislature. 
    (b) If an objection is made to the proposed diversion or 
consumptive use by an office, agency, or commission to which 
notice was given under paragraph (a), clause (1), the 
commissioner must convene a meeting with the affected office, 
agency, or commission to investigate and consider the issues 
involved, and to seek a mutually agreeable solution to be 
recommended to the commissioner.  In making a final decision on 
the approval of a permit or plan subject to review under this 
subdivision, the commissioner shall consider the record of the 
meeting and the recommendation.  The commissioner must send 
notification of the final decision to each office, agency, or 
commission to which notice was given under paragraph (a), clause 
(1).  [105.405 s. 4] 
    Sec. 27.  [103G.271] [APPROPRIATION AND USE OF WATERS.] 
    Subdivision 1.  [PERMIT REQUIRED.] (a) Except as provided 
in paragraph (b), the state, a person, partnership, or 
association, private or public corporation, county, 
municipality, or other political subdivision of the state may 
not appropriate or use waters of the state without a water use 
permit from the commissioner.  
    (b) This section does not apply to use for a water supply 
by less than 25 persons for domestic purposes.  [105.41 s. 1] 
    Subd. 2.  [PERMITS MUST BE CONSISTENT WITH STATE AND LOCAL 
PLANS.] A water use permit may not be issued under this section 
unless it is consistent with state, regional, and local water 
and related land resources management plans.  [105.41 s. 1] 
    Subd. 3.  [PERMIT RESTRICTION DURING SUMMER MONTHS.] The 
commissioner must not modify or restrict the amount of 
appropriation from a groundwater source authorized in a water 
use permit issued to irrigate agricultural land under section 
32, subdivision 2, between May 1 and October 1, unless the 
commissioner determines the authorized amount of appropriation 
endangers a domestic water supply.  [105.41 s. 1] 
    Subd. 4.  [MINIMUM USE EXEMPTION AND LOCAL APPROVAL OF LOW 
USE PERMITS.] (a) Except for local permits under article 2, 
section 7, subdivision 4, a water use permit is not required for 
the appropriation and use of less than a minimum amount 
prescribed by the commissioner by rule.  
    (b) Water use permits for more than the minimum amount but 
less than an intermediate amount prescribed by rule must be 
processed and approved at the municipal, county, or regional 
level based on rules adopted by the commissioner.  
    (c) The rules must include provisions for reporting to the 
commissioner the amounts of water appropriated under local 
permits.  [105.41 s. 1b] 
    Subd. 5.  [CERTAIN COOLING SYSTEM PERMITS PROHIBITED.] (a) 
The commissioner may not issue a water use permit from a 
groundwater source for a once-through cooling system using in 
excess of 5,000,000 gallons annually.  
    (b) For purposes of this subdivision, a once-through 
cooling system means a cooling or heating system for human 
comfort that draws a continuous stream of water from a 
groundwater source to remove or add heat for cooling, heating, 
or refrigeration. 
    Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
described in paragraph (b), a water use permit processing fee 
not to exceed $2,000 must be prescribed by the commissioner in 
accordance with the following schedule of fees for each water 
use permit in force at any time during the year:  
    (1) 0.05 cents per 1,000 gallons for the first 50,000,000 
gallons per year; and 
    (2) 0.1 cents per 1,000 gallons for amounts greater than 
50,000,000 gallons per year.  
    (b) For once-through cooling systems as defined in 
subdivision 5, a water use processing fee must be prescribed by 
the commissioner in accordance with the following schedule of 
fees for each water use permit in force at any time during the 
year: 
    (1) 5.0 cents per 1,000 gallons until December 31, 1991; 
    (2) 10.0 cents for 1,000 gallons from January 1, 1992, 
until December 31, 1996; and 
    (3) 15.0 cents per 1,000 gallons after January 1, 1997.  
    (c) The fee is payable based on the amount of water 
permitted during the year and in no case may the fee be less 
than $25. 
    (d) Failure to pay the fee is sufficient cause for revoking 
a permit.  [105.41 s. 5a] 
    Subd. 7.  [TRANSFER OF PERMIT.] A water use permit may be 
transferred to a successive owner of real property if the 
permittee conveys the real property where the source of water is 
located.  The new owner must notify the commissioner immediately 
after a water use permit is transferred under this section.  
[105.41 s. 6] 
    Sec. 28.  [103G.275] [INSTALLATION FOR WATER USE.] 
    Subdivision 1.  [PERMIT REQUIRED.] The owner of an 
installation for appropriating or using waters of the state may 
not increase the pumping capacity or make any major change in 
the installation without a water use permit.  [105.41 s. 2] 
    Subd. 2.  [WATER USE DATA STATEMENT.] The owner or person 
in charge of an installation for appropriating or using waters 
of the state, whether or not under use permit, must file a water 
use data statement with the commissioner.  The statement must be 
filed at the time the commissioner determines necessary for the 
statewide water information system.  The water use data 
statement must be on forms provided by the commissioner and 
identify the installation's location, its capacity, the purposes 
for which it is used, and additional information required by the 
commissioner.  [105.41 s. 2] 
    Subd. 3.  [COMMISSIONER'S EXAMINATIONS.] The commissioner 
may examine an installation that appropriates or uses surface 
water or ground water.  The owner of the installation must 
provide information required by the commissioner.  [105.41 s. 3] 
    Sec. 29.  [103G.281] [WATER USE PROHIBITED WITHOUT 
MEASURING QUANTITIES.] 
    Subdivision 1.  [MEASURING AND RECORDS REQUIRED.] The 
state, a political subdivision of the state, a person, 
partnership, public or private corporation or association may 
not appropriate or use waters of the state without measuring and 
keeping a record of the quantity of water used or appropriated 
as provided in section 27 or 28.  [105.41 s. 4] 
    Subd. 2.  [MEASURING EQUIPMENT REQUIRED.] An installation 
for appropriating or using water must be equipped with a device 
or use a method to measure the quantity of water appropriated 
with reasonable accuracy.  The commissioner's determination of 
the method to be used for measuring water quantity must be based 
on the quantity of water appropriated or used, the source of 
water, the method of appropriating or using water, and any other 
facts supplied to the commissioner.  [105.41 s. 4] 
    Subd. 3.  [REPORT.] (a) Records of the amount of water 
appropriated or used must be kept for each installation.  The 
readings and the total amount of water appropriated must be 
reported annually to the commissioner on or before February 15 
of the following year on forms provided by the commissioner. 
    (b) The records must be submitted with the annual water use 
permit processing fee in section 27.  [105.41 s. 5] 
    Sec. 30.  [103G.285] [SURFACE WATER APPROPRIATIONS.] 
    Subdivision 1.  [WAIVER.] The commissioner may waive a 
limitation or requirement in subdivisions 2 to 6 for just 
cause.  [105.417 s. 1] 
    Subd. 2.  [NATURAL AND ALTERED NATURAL WATERCOURSES.] If 
data are available, permits to appropriate water from natural 
and altered natural watercourses must be limited so that 
consumptive appropriations are not made from the watercourses 
during periods of specified low flows.  The purpose of the limit 
is to safeguard water availability for instream uses and for 
downstream higher priority users located reasonably near the 
site of appropriation.  [105.417 s. 2] 
    Subd. 3.  [WATERBASINS.] (a) Permits to appropriate water 
from waterbasins must be limited so that the collective annual 
withdrawals do not exceed a total volume of water amounting to 
one-half acre-foot per acre of waterbasin based on Minnesota 
department of conservation bulletin No. 25, "An Inventory of 
Minnesota Lakes," published in 1968. 
    (b) As a condition to a surface water appropriation permit, 
the commissioner shall set a protective elevation for the 
waterbasin, below which an appropriation is not allowed.  During 
the determination of the protective elevation, the commissioner 
shall consider: 
     (1) the elevation of important aquatic vegetation 
characteristics related to fish and wildlife habitat; 
    (2) existing uses of the waterbasin by the public and 
riparian landowners; and 
    (3) the total volume within the waterbasin and the slope of 
the littoral zone.  [105.417 s. 3] 
    Subd. 4.  [WATERBASINS LESS THAN 500 ACRES.] As part of an 
application for appropriation of water from a waterbasin less 
than 500 acres in surface area, the applicant shall obtain a 
statement of support with as many signatures as the applicant 
can obtain from property owners with property riparian to the 
waterbasin.  The statement of support must: 
    (1) state support for the proposed appropriation; and 
     (2) show the number of property owners whose signatures the 
applicant could not obtain.  [105.417 s. 3] 
    Subd. 5.  [TROUT STREAMS.] Permits issued after June 3, 
1977, to appropriate water from streams designated trout streams 
by the commissioner's orders under section 97C.021, must be 
limited to temporary appropriations.  [105.417 s. 4] 
    Subd. 6.  [CONTINGENCY PLANNING.] An application for use of 
surface waters of the state is not complete until the applicant 
submits, as part of the application, a contingency plan that 
describes the alternatives the applicant will use if further 
appropriation is restricted due to the flow of the stream or the 
level of a waterbasin.  A surface water appropriation may not be 
allowed unless the contingency plan is feasible or the permittee 
agrees to withstand the results of not being able to appropriate 
water.  [105.417 s. 5] 
    Sec. 31.  [103G.291] [PUBLIC WATER SUPPLY APPROPRIATION 
DURING DEFICIENCY.] 
    Subdivision 1.  [DECLARATION AND CONSERVATION.] (a) If the 
governor determines and declares by executive order that there 
is a critical water deficiency, public water supply authorities 
appropriating water must adopt and enforce water conservation 
restrictions within their jurisdiction that are consistent with 
rules adopted by the commissioner. 
    (b) The restrictions must limit lawn sprinkling, vehicle 
washing, golf course and park irrigation, and other nonessential 
uses, and have appropriate penalties for failure to comply with 
the restrictions.  [105.418] 
    Subd. 2.  [MODIFICATION OF APPROPRIATION FOR 
NONCOMPLIANCE.] Disregard of critical water deficiency orders, 
even though total appropriation remains less than that 
permitted, is adequate grounds for immediate modification of a 
public water supply authority's water use permit.  [105.418] 
    Sec. 32.  [103G.295] [IRRIGATION OF AGRICULTURAL LAND.] 
    Subdivision 1.  [RECOMMENDATION AND INFORMATION FOR PUBLIC 
WATERS APPROPRIATION.] (a) If an application is made for a 
permit to irrigate agricultural land from public waters, the 
soil and water conservation district may make recommendations to 
the commissioner regarding the disposition of the application 
and its compatibility to a comprehensive soil and water 
conservation plan approved under article 3, section 19, 
subdivision 11.  The recommendations must be made within 30 days 
of the receipt of the application.  
    (b) Within 30 days of receipt of the application the 
commissioner may require additional specific information from 
the applicant.  [105.44 s. 8] 
    Subd. 2.  [ISSUANCE OR DENIAL OF PERMIT FOR APPROPRIATION 
FROM PUBLIC WATERS.] After receiving all requested information, 
the commissioner must review the application and information, 
consider the soil and water conservation district's 
recommendations, and issue or deny the permit within 60 days.  
If the commissioner orders a hearing, the permit must be issued 
or denied within ten days after receiving the report of the 
hearing officer.  For an application for a permit to irrigate 
agricultural land, failure of the commissioner to issue or deny 
a permit within the time specified under this subdivision is 
considered an order issuing the permit as applied for.  The 
order is effective ten days after the applicant has given 
written notice to the commissioner stating an intention to 
proceed with the appropriation of water to irrigate agricultural 
land.  [105.44 s. 8] 
    Subd. 3.  [GROUNDWATER APPROPRIATION PERMIT CLASSIFICATION 
AREAS.] (a) Water use permit applications required for 
appropriation of groundwater for agricultural irrigation must be 
processed in the order received and designated as either class A 
or class B applications.  Class A applications are for wells 
located in areas for which the commissioner has adequate 
groundwater availability data.  Class B applications are for 
wells located in other areas. 
    (b) The commissioner must evaluate available groundwater 
data, determine its adequacy, and designate class A and B 
application areas for the entire state.  The commissioner shall 
request, obtain, and evaluate groundwater data from soil and 
water conservation districts, and where appropriate revise the 
class A and B application area designations.  
    (c) The commissioner shall file a commissioner's order with 
the secretary of state defining class A and B application areas 
by county and township.  Additional areas may be added by a 
later order of the commissioner.  [105.416 s. 1] 
    Subd. 4.  [CLASS B PERMIT REQUIREMENTS.] (a) Class B 
groundwater water use permit applications are not complete until 
the applicant has supplied: 
    (1) a summary of the anticipated well depth and subsurface 
geologic formation expected to be penetrated by the well, 
including for glacial drift aquifers, the logs of test holes 
drilled to locate the site of the proposed production well; 
    (2) the formation and aquifer expected to serve as the 
groundwater source; 
    (3) the maximum daily, seasonal and annual pumpage 
expected; 
    (4) the anticipated groundwater quality in terms of the 
measures of quality commonly specified for the proposed water 
use; 
    (5) the results of a pumping test supervised by the 
commissioner or a designee of the commissioner, conducted at a 
rate not to exceed the proposed pumping rate for not more than 
72 continuous hours for wells under water table conditions and 
not more than 24 continuous hours for wells under artesian 
conditions; and 
    (6) when the area of influence of the proposed well is 
determined, the location of existing wells within the area of 
influence that were reported according to section 103I.205, 
subdivision 9, together with readily available facts on depths, 
geologic formations, pumping and nonpumping water levels and 
details of well construction as related to the water well 
construction code. 
    (b) The commissioner may in any specific application waive 
any requirements of paragraph (a), clauses (4) to (6) or 
paragraph (c) if the necessary data are already available. 
    (c) Before, during, and after the pumping test required in 
paragraph (a), clause (5), the commissioner shall require 
monitoring of water levels in one observation well located at a 
distance from the pumping well that the commissioner has reason 
to believe may be affected by the new appropriation.  The permit 
applicant is responsible for costs of the pumping tests and 
monitoring in the observation well.  The applicant is 
responsible for the construction of one observation well if 
suitable existing wells cannot be located for this purpose.  If 
the commissioner determines that more than one observation well 
is needed the commissioner shall instruct the applicant to 
install and monitor more observation wells.  The commissioner 
shall reimburse the applicant for these added costs.  [105.416 
s. 2] 
    Subd. 5.  [ISSUANCE OF PERMITS FOR GROUNDWATER 
APPROPRIATION.] The commissioner may issue water use permits for 
irrigation appropriation from groundwater only if the 
commissioner determines that:  
    (1) proposed soil and water conservation measures are 
adequate based on recommendations of the soil and water 
conservation districts; and 
    (2) water supply is available for the proposed use without 
reducing water levels beyond the reach of vicinity wells 
constructed in accordance with the water well construction code 
in Minnesota Rules, parts 4725.1900 to 4725.6500.  [105.416 s. 
3] 
    Sec. 33.  [103G.297] [DIVERSION OR DRAINAGE OF WATER FOR 
MINING.] 
    Subdivision 1.  [AUTHORITY TO ISSUE PERMITS.] The 
commissioner may issue water use permits for the diversion, 
drainage, control, or use of waters of the state for mining iron 
ore, taconite, copper, copper-nickel, or nickel as provided in 
this section.  [105.64 s. 1] 
    Subd. 2.  [APPLICATION.] (a) An owner of the iron ore, 
taconite, copper, copper-nickel, or nickel deposits or the owner 
of the right to mine the deposits must apply to the commissioner 
for a permit in the form prescribed by the commissioner.  
    (b) Except as otherwise provided in this section, the 
application and the proceedings related to the application and 
to a permit issued are governed by the applicable provisions of 
this chapter.  [105.64 s. 2] 
    Subd. 3.  [GRANT.] The permit may be granted only if the 
commissioner determines that: 
    (1) the proposed drainage, diversion, control, or use of 
waters will be necessary for the mining of substantial deposits 
of iron ore, taconite, copper, copper-nickel, or nickel, and 
that another feasible and economical method of mining is not 
reasonably available; 
    (2) the proposed drainage, diversion, control, or use of 
waters will not substantially impair the interests of the public 
in lands or waters or the substantial beneficial public use of 
lands or waters except as expressly authorized in the permit and 
will not endanger public health or safety; and 
    (3) the proposed mining operations will be in the public 
interest and the resulting public benefits warrant the proposed 
drainage, diversion, or control of waters.  [105.64 s. 3] 
    Subd. 4.  [OPERATION.] If the operations authorized by a 
permit may affect public or private property not owned by the 
permittee, before proceeding with the operations, the permittee 
must:  
    (1) acquire all rights or easements necessary for the 
operation; 
    (2) pay or give security for the payment of damages to the 
property that may result from the operations; and 
     (3) give evidence of compliance with this subdivision as 
the commissioner may require.  [105.64 s. 4] 
    Subd. 5.  [LIABILITY OF STATE AND ITS OFFICIALS.] The state 
and its officers, agents, or employees do not incur liability on 
account of the issuance of a permit or on account of any act or 
omission of the permittee, or the permittee's agents or 
employees, under or in connection with the permit.  [105.64 s. 
4] 
    Subd. 6.  [PERMIT PERIOD.] (a) Notwithstanding other 
limitations prescribed by law, a permit must be granted for a 
term the commissioner finds reasonable and necessary for the 
completion of the proposed mining operations, and the 
commissioner may prescribe a time in the permit for the 
commencement or completion of operations or construction under 
the permit or the exercise of the rights granted by the permit.  
    (b) The commissioner may extend the original term of the 
permit or the time allowed for the performance of its conditions 
for good cause shown upon application of the permittee.  [105.64 
s. 5] 
    Subd. 7.  [PERMIT CONDITIONS.] In a permit, the 
commissioner may prescribe conditions the commissioner finds 
necessary and practicable for restoring the waters to their 
former condition after completion of the mining operations or 
after expiration or cancellation of the permit.  The 
commissioner may also prescribe other conditions necessary to 
protect the public health, safety, and welfare, and may require 
the permittee to furnish a bond to the state in an appropriate 
form and amount as security for compliance with the conditions 
of the permit and applicable law.  [105.64 s. 5] 
    Subd. 8.  [MODIFICATION AND CANCELLATION OF PERMIT.] (a) A 
permit issued under this section is irrevocable for the term of 
the permit and for any extension of the term except: 
    (1) the permit may be modified or canceled by the 
commissioner at the request or with the consent of the permittee 
upon conditions the commissioner finds necessary to protect the 
public interest; 
    (2) subject to appeal as provided for water use permits, 
the commissioner may modify or cancel a permit as provided in 
paragraph (b) if:  
    (i) the permittee or its employees or agents breach the 
permit's terms or conditions or violate pertinent law; or 
    (ii) the commissioner finds the modification or 
cancellation necessary to protect the public health or safety, 
or to protect the public interests in lands or waters against 
substantial injury resulting in any manner or to any extent not 
expressly authorized by the permit, or to prevent substantial 
injury to persons or property resulting in any manner or to any 
extent not so authorized; or 
    (3) the commissioner immediately suspends operations under 
a permit by written order to the permittee if necessary in an 
emergency, to protect the public health or safety or to protect 
public interests in lands or waters against imminent danger of 
substantial injury in any manner or to any extent not expressly 
authorized by the permit, or to protect persons or property 
against the danger, and may require the permittee to take any 
measures necessary to prevent or remedy the injury. 
    (b) The commissioner may modify or cancel the permit upon 
at least 30 days' written notice to the permittee, stating the 
grounds of the proposed modification or cancellation and giving 
the permittee an opportunity to be heard. 
    (c) An order under paragraph (a), clause (3), may not 
remain in effect for more than 30 days from the date of the 
order without giving the permittee at least ten days' written 
notice of the order and an opportunity to be heard relating to 
the order.  [105.64 s. 6] 
    Subd. 9.  [EFFECT ON OTHER LAW.] This section does not 
amend, supersede, or repeal any existing law, but is 
supplementary to it.  [105.64 s. 7] 

                        GENERAL PERMIT PROCEDURE 
    Sec. 34.  [103G.301] [GENERAL PERMIT APPLICATION 
PROCEDURES.] 
    Subdivision 1.  [APPLICATION DOCUMENTATION.] (a) An 
application for a permit must be accompanied by: 
    (1) maps, plans, and specifications describing the proposed 
appropriation and use of waters; 
    (2) the changes, additions, repairs, or abandonment 
proposed to be made; 
    (3) the public water affected; and 
    (4) other data the commissioner may require. 
    (b) The commissioner may require a statement of the effect 
the actions proposed in the permit application will have on the 
environment, including: 
    (1) anticipated changes in water and related land 
resources; 
    (2) unavoidable but anticipated detrimental effects; and 
    (3) alternatives to the actions proposed in the permit.  
[105.44 s. 1] 
    Subd. 2.  [PERMIT APPLICATION FEES.] (a) An application for 
a permit authorized under this chapter, and each request to 
amend or transfer an existing permit, must be accompanied by a 
permit application fee to defray the costs of receiving, 
recording, and processing the application or request to amend or 
transfer.  
     (b) The application fee for a permit to appropriate water, 
a permit to construct or repair a dam that is subject to dam 
safety inspection, or to apply for the state water bank program 
is $75.  The application fee for a permit to work in public 
waters or to divert waters for mining must be at least $75, but 
not more than $500, in accordance with a schedule of fees 
adopted under section 16A.128.  [105.44 s. 10] 
    Subd. 3.  [FIELD INSPECTION FEES.] (a) In addition to the 
application fee, the commissioner may charge a field inspection 
fee for:  
    (1) projects requiring a mandatory environmental assessment 
under chapter 116D; 
    (2) projects undertaken without a required permit or 
application; and 
    (3) projects undertaken in excess of limitations 
established in an issued permit.  
    (b) The fee must be at least $100 but not more than actual 
inspection costs.  
    (c) The fee is to cover actual costs related to a permit 
applied for under this chapter or for a project undertaken 
without proper authorization. 
    (d) The commissioner shall establish a schedule of field 
inspection fees under section 16A.128.  The schedule must 
include actual costs related to field inspection, including 
investigations of the area affected by the proposed activity, 
analysis of the proposed activity, consultant services, and 
subsequent monitoring, if any, of the activity authorized by the 
permit.  [105.44 s. 10] 
    Subd. 4.  [REFUND OF FEES PROHIBITED.] A permit application 
or field inspection fee may not be refunded for any reason, even 
if the application is denied or withdrawn.  [105.44 s. 10] 
    Subd. 5.  [STATE AND FEDERAL AGENCIES EXEMPT FROM FEE.] A 
permit application or field inspection fee may not be imposed on 
any state agency, as defined in section 16B.01, or federal 
governmental agency applying for a permit.  [105.44 s. 10] 
    Subd. 6.  [FILING APPLICATION.] (a) An application for a 
permit must be filed with the commissioner and if the proposed 
activity for which the permit is requested is within a 
municipality, or is within or affects a watershed district or a 
soil and water conservation district, a copy of the application 
with maps, plans, and specifications must be served on the mayor 
of the municipality, the secretary of the board of managers of 
the watershed district, and the secretary of the board of 
supervisors of the soil and water conservation district. 
    (b) If the application is required to be served on a local 
governmental unit under this subdivision, proof of service must 
be included with the application and filed with the 
commissioner.  [105.44 s. 1] 
    Subd. 7.  [RECOMMENDATION OF LOCAL UNITS OF GOVERNMENT.] (a)
If the proposed activity for which the permit is requested is 
within a municipality, or is within or affects a watershed 
district or a soil and water conservation district, the 
commissioner may obtain a written recommendation of the managers 
of the district and the board of supervisors of the soil and 
water conservation district or the mayor of the municipality 
before issuing or denying the permit. 
    (b) The managers, supervisors, or mayor must file a 
recommendation within 30 days after receiving of a copy of the 
application for permit.  [105.44 s. 2] 
    Sec. 35.  [103G.305] [TIME LIMIT TO ACT ON WATER USE PERMIT 
APPLICATION.] 
    Subdivision 1.  [GENERAL 30-DAY LIMIT.] (a) Except as 
provided in subdivision 2, the commissioner must act on a water 
use permit within 30 days after the application for the permit 
and the required data are filed in the commissioner's office.  
     (b) The commissioner must direct a hearing to be held on a 
water use permit application or make an order issuing a permit 
or denying a permit.  [105.44 s. 4] 
    Subd. 2.  [EXCEPTION.] The requirements of subdivision 1 do 
not apply to applications for a water use permit for: 
    (1) appropriations from public waters for irrigation, under 
section 32; 
    (2) appropriations for diversion from the basin of origin 
of more than 2,000,000 gallons per day average in a 30-day 
period; or 
    (3) appropriations with a consumptive use of more than 
2,000,000 gallons per day average for a 30-day period.  [105.44 
s. 4] 
    Sec. 36.  [103G.311] [PERMIT HEARING.] 
    Subdivision 1.  [HEARING REQUIREMENT.] A hearing must be 
conducted as a contested case hearing under chapter 14.  [105.44 
s. 3] 
    Subd. 2.  [HEARING NOTICE.] (a) The hearing notice on an 
application must state: 
    (1) the date, place, and time fixed by the commissioner for 
the hearing; and 
    (2) the waters affected, the water levels sought to be 
established, or control structures proposed. 
    (b) The hearing notice must be published by the 
commissioner at the expense of the applicant or, if the 
proceeding is initiated by the commissioner in the absence of an 
applicant, at the expense of the commissioner. 
    (c) The hearing notice must be: 
    (1) published once a week for two successive weeks before 
the day of hearing in a legal newspaper published in the county 
where any part of the affected waters is located; 
    (2) mailed by the commissioner to the county auditor, the 
mayor of a municipality, the watershed district, and the soil 
and water conservation district affected by the application; and 
    (3) made under requirements prescribed by sections 14.57 to 
14.59 and rules of the chief administrative law judge.  [105.44 
s. 5] 
    Subd. 3.  [SUBPOENA OF WITNESSES AND EVIDENCE.] (a) The 
commissioner may subpoena and compel the attendance of witnesses 
and the production of books and documents that are material to 
the purposes of the hearing.  
    (b) Disobedience of a subpoena is punishable in the same 
manner as a contempt of the district court.  The commissioner 
must file a complaint of the disobedience of a subpoena with the 
district court of the county where the subpoena was disobeyed.  
[105.44 s. 7] 
    Subd. 4.  [WAIVER OF HEARING.] The commissioner may waive a 
hearing on an application and order the permit to be issued or 
deny the permit.  [105.44 s. 3] 
    Subd. 5.  [DEMAND FOR HEARING.] (a) If a hearing is waived 
and an order is made issuing or denying the permit, the 
applicant, the managers of the watershed district, the board of 
supervisors of the soil and water conservation district, or the 
mayor of the municipality may file a demand for hearing on the 
application.  The demand for a hearing must be filed within 30 
days after mailed notice of the order with the bond required by 
subdivision 6. 
    (b) The commissioner must give notice as provided in 
subdivision 2, hold a hearing on the application, and make a 
determination on issuing or denying the permit as though the 
previous order had not been made.  
    (c) The order issuing or denying the permit becomes final 
at the end of 30 days after mailed notice of the order to the 
applicant, the managers of the watershed district, the board of 
supervisors of the soil and water conservation district, or the 
mayor of the municipality, and an appeal of the order may not be 
taken if: 
    (1) the commissioner waives a hearing and a demand for a 
hearing is not made; or 
    (2) a hearing is demanded but a bond is not filed as 
required by subdivision 6.  [105.44 s. 3] 
    Subd. 6.  [BOND FOR DEMANDING PUBLIC HEARING.] (a) An 
applicant filing a demand for a public hearing must execute and 
file a corporate surety bond or equivalent security to the state 
of Minnesota, to be approved by the commissioner and in an 
amount and form determined by the commissioner.  The bond or 
security must be conditioned to pay the costs of the hearing if 
the commissioner's order issuing or denying a permit is affirmed 
without material modification. 
    (b) A bond or security is not required of a public 
authority that demands a public hearing.  
    (c) The commissioner may waive the requirement for a bond 
or other security.  [105.44 s. 6] 
    Subd. 7.  [HEARING COSTS.] (a) Except as provided in 
paragraphs (b) and (c), the costs of a hearing must be paid as 
prescribed by chapter 14 and the chief administrative law judge. 
    (b) If a hearing is waived by the commissioner, but the 
applicant other than a public authority demands a hearing on the 
application and the commissioner's order is affirmed without 
material modification, the applicant must pay the following 
costs up to $750: 
    (1) costs of the stenographic record and transcript; 
    (2) rental costs, if any, of the place where the hearing is 
held; and 
    (3) costs of publication of orders made by the commissioner.
    (c) If a hearing is waived by the commissioner, but a 
hearing is demanded by a public authority other than the 
applicant and the commissioner's order is affirmed without 
material modification, the public authority making the demand 
must pay: 
    (1) costs of the stenographic record and transcript; 
    (2) rental costs, if any, of the place where the hearing is 
held; and 
    (3) costs of publication of orders made by the commissioner.
[105.44 s. 6] 
    Sec. 37.  [103G.315] [DENIAL AND ISSUANCE OF PERMITS.] 
    Subdivision 1.  [COMMISSIONER'S GENERAL AUTHORITY.] The 
commissioner may deny issuing permits and issue permits with or 
without conditions.  [105.44 s. 2] 
    Subd. 2.  [FINDINGS OF FACT.] The commissioner shall make 
findings of fact on issues necessary for determination of the 
applications considered.  Orders made by the commissioner must 
be based upon findings of fact made on substantial evidence.  
The commissioner may have investigations made.  The facts 
disclosed by investigation must be put in evidence at the 
hearing.  [105.45] 
     Subd. 3.  [ISSUANCE OF PERMIT.] If the commissioner 
concludes that the plans of the applicant are reasonable, 
practical, and will adequately protect public safety and promote 
the public welfare, the commissioner shall grant the permit.  
[105.45] 
    Subd. 4.  [CONTROL LEVELS.] If they are in issue, the 
commissioner shall also fix the control levels of public waters 
accordingly.  [105.45] 
    Subd. 5.  [DENIAL; MODIFICATIONS.] Otherwise the 
commissioner shall reject the application or may require 
modification of the plan as the commissioner finds proper to 
protect the public interest.  [105.45] 
    Subd. 6.  [BURDEN OF PROOF; CONDITIONS.] (a) In permit 
applications the applicant has the burden of proving that the 
proposed project is reasonable, practical, and will adequately 
protect public safety and promote the public welfare. 
    (b) In granting a permit, the commissioner may include in 
it terms and reservations about the amount and manner of the use 
or appropriation or method of construction or operation of 
controls as appear reasonably necessary for the safety and 
welfare of the people of the state.  [105.45] 
    Subd. 7.  [RESTORING EFFECTS OF UNLAWFUL ACTIVITIES.] (a) 
The commissioner may include in an order issuing or denying a 
permit, a requirement for the applicant to take an action 
necessary to restore the public waters or their beds to the 
condition existing before unlawful activities, if any, were 
undertaken by the applicant.  The restoration may include 
filling beds unlawfully dredged, removing fill unlawfully 
placed, or restoring water unlawfully appropriated.  
    (b) If a hearing on the application was not held, the 
applicant may contest the order within 30 days of receiving it 
and must be given a contested case hearing as prescribed by 
chapter 14.  [105.461] 
     Subd. 8.  [NOTICE OF PERMIT ORDER.] Notice of orders made 
after hearing must be given by publication of the order once a 
week for two successive weeks in a legal newspaper in the county 
where the hearing was held and by mailing copies of the order to 
parties who entered an appearance at the hearing.  [105.45] 
    Subd. 9.  [TIME FOR ISSUANCE OF ORDER.] The commissioner 
shall make an order within 60 days after the completion of the 
hearing.  [105.45] 
    Subd. 10.  [CHARGES FOR EXCAVATION OF MINERALS.] The 
commissioner must impose charges for the excavation of minerals 
from the beds of public waters, as provided in chapter 93.  
[105.44 s. 1a] 
    Subd. 11.  [LIMITATIONS ON PERMITS.] (a) Except as 
otherwise expressly provided by law, a permit issued by the 
commissioner under this chapter is subject to:  
    (1) cancellation by the commissioner at any time if 
necessary to protect the public interests; 
    (2) further conditions on the term of the permit or its 
cancellation as the commissioner may prescribe and amend and 
reissue the permit; and 
    (3) applicable law existing before or after the issuance of 
the permit.  
    (b) Permits issued to irrigate agricultural land under 
section 32, or considered issued, are subject to this 
subdivision, and are subject to cancellation by the commissioner 
upon the recommendation of the supervisors of the soil and water 
conservation district where the land to be irrigated is 
located.  [105.44 s.9] 
    Subd. 12.  [PERMIT NOT ISSUED UNTIL FEES ARE PAID.] Except 
for field inspection fees related to monitoring, the 
commissioner may not issue a permit until all fees required by 
this section relating to the issuance of a permit have been 
paid.  The time limits prescribed by section 35, subdivision 1, 
do not apply to an application for which the appropriate fee has 
not been paid.  Field inspection fees relating to monitoring of 
an activity authorized by a permit may be charged and collected 
as necessary at any time after the issuance of the permit.  
[105.44 s. 10] 
    Subd. 13.  [PERIOD FOR ACTIVITIES UNDER PERMIT.] (a) The 
commissioner shall set the time period within which:  
    (1) construction authorized in the permit must be 
completed; or 
    (2) an appropriation or use of water must be made. 
    (b) The time must not exceed five years from the date of 
the permit.  
    (c) The time period may be extended by the commissioner 
after application and for good cause demonstrated by the 
permittee.  [105.46] 
    Subd. 14.  [IRREVOCABILITY OF CERTAIN PERMITS RELATED TO 
MINING.] (a) Permits granted in connection with the mining, 
transporting, concentration, or shipment of taconite as defined 
in section 93.20, subdivision 18, and permits granted in 
connection with the mining, production, or beneficiation of 
copper, copper-nickel, or nickel, are irrevocable for the term 
of the permits without the consent of the permittee, except for 
breach or nonperformance of any condition of the permit by the 
permittee.  
    (b) The commissioner may allow and prescribe in the permit 
any time the commissioner considers reasonable, notwithstanding 
the limitations under subdivision 13, limitations of time 
contained in this section for beginning or completing 
construction or operations under the permit, or exercising the 
rights granted under the permit.  
    (c) The commissioner may extend the time, for cause shown, 
upon the application of the permittee.  [105.46] 
    Subd. 15.  [RULES FOR ISSUANCE AND DENIAL OF PERMITS.] The 
commissioner shall adopt rules prescribing standards and 
criteria for issuing and denying water use permits, public 
waters work permits, and water level control permits issued 
under section 39.  [105.415] 

                 WATER LEVEL ESTABLISHMENT AND CONTROL 
    Sec. 38.  [103G.401] [APPLICATION FOR ESTABLISHMENT OF LAKE 
LEVELS.] 
    (a) Applications for authority to establish and maintain 
levels of public waters and applications to establish the 
natural ordinary high water level of public waters may be made 
to the commissioner by a public body or authority or by a 
majority of the riparian owners on the public waters.  
    (b) To conserve or utilize the water resources of the 
state, the commissioner may initiate proceedings to establish 
and maintain the level of public waters.  [105.43] 
    Sec. 39.  [103G.405] [WATER LEVEL CONTROL FOR LANDLOCKED 
LAKES.] 
    The commissioner must issue a water level control permit to 
establish control elevations for landlocked lakes up to three 
feet below the ordinary high water level for the lake, if: 
    (1) the commissioner finds that control is necessary to 
prevent flooding of homesteads; 
    (2) other reasonable or cost-effective alternatives are not 
available; and 
    (3) a change in the control elevation is prescribed in an 
approved stormwater plan under article 2, section 12.  [105.42 
s. 4] 
    Sec. 40.  [103G.411] [STIPULATION OF LOW-WATER MARK.] 
    If the state is a party in a civil action relating to the 
navigability or ownership of the bed of a body of water, river, 
or stream, the commissioner, in behalf of the state, with the 
approval of the attorney general, may agree by written 
stipulation with a riparian owner who is a party to the action 
on the location of the ordinary low-water mark on the riparian 
land of the party.  After the stipulation is executed by all 
parties, it must be presented to the judge of the district court 
where the action is pending for approval.  If the stipulation is 
approved, the judge shall make and enter an order providing that 
the final judgment when entered shall conform to the location of 
the ordinary, low-water mark as provided for in the stipulation 
as it relates to the parties to the stipulation.  [84.032] 

                             BIG STONE LAKE 
    Sec. 41.  [103G.415] [BIG STONE LAKE, SEASONAL WATER 
LEVEL.] 
    Subdivision 1.  [DESIRABLE WATER LEVEL ELEVATION 
DETERMINED.] The most desirable and beneficial level for the 
waters of Big Stone Lake from May 1 to October 1 is elevation 
967, project datum, and the director of game and fish of South 
Dakota and the commissioner of natural resources of Minnesota 
shall maintain and operate the Big Stone control dam in 
conformance with this elevation.  [110.46 s. 2; 114.12] 
    Subd. 2.  [REGULATION AT LEVELS LESS THAN DESIRABLE 
ELEVATION.] When the water elevation of Big Stone Lake is 967, 
or less, project datum: 
    (1) stop logs must be kept in place and maintained in the 
outlet dam of Big Stone Lake; and 
    (2) the outflow from the outlet dam must be regulated not 
to exceed 100 cubic feet per second.  [114.12] 

                      MISSISSIPPI HEADWATER LAKES 
    Sec. 42.  [103G.421] [CONTROL OF MISSISSIPPI HEADWATER 
LAKES.] 
    Subdivision 1.  [REASON FOR CONTROL.] The legislature finds 
that the regulation, control, and utilization of waters in the 
headwater lakes in the Mississippi river, including Leech Lake, 
Winnibigoshish Lake, Pokegama Lake, Pine river, the Whitefish 
chain, Sandy Lake and Gull Lake are of tremendous economic 
importance and value to the state and the utility of these lakes 
in aid of navigation has been very greatly diminished since the 
time of the establishment of the reservoirs, and that the 
economic values in utilization of these waters for state 
purposes has increased tremendously.  These factors require the 
assertion on the part of the state of Minnesota of its rights to 
utilization and control of these water areas.  [110.47] 
    Subd. 2.  [JOINT FEDERAL-STATE CONTROL.] The commissioner 
shall enter into cooperative agreements with the United States 
of America acting through the Department of the Army for the 
joint control and regulation of the Mississippi headwater 
reservoirs to control the water elevations and the water 
discharges from the Mississippi headwaters lakes in the 
interests of the state, subject only to: 
    (1) a paramount need of waters from these sources in aid of 
substantial navigation requirements; and 
    (2) a substantial requirement of providing necessary flood 
control storage capacity as determined by the United States 
Department of the Army Corps of Engineers.  [110.48] 
    Subd. 3.  [PLAN FOR DAM OPERATION.] (a) The commissioner 
must develop a plan for the operation of the dams controlling 
each of the Mississippi headwater reservoirs that: 
    (1) establishes the water elevation on each of the 
Mississippi headwater lakes at the most desirable height, and 
stabilizes the stages at that point, as practicable, during the 
recreational use season; 
    (2) considers reasonable fluctuations when desirable for 
the production of wild rice in the wild rice producing areas of 
Mississippi headwater lakes; 
    (3) considers the elevations most desirable for the 
production and maintenance of wildlife resources; 
    (4) considers the needs of water for recreation, 
agriculture, forestry, game and fish, industry, municipal water 
supply and sewage disposal, power generation, and other purposes 
in the Mississippi river headwaters and downstream; 
    (5) establishes stages at which the water will be 
maintained, as practicable, but recognizing the following 
minimum stages in reference to present zeros on the respective 
government gauges: 
    (i) Leech Lake ...............0.0; 
    (ii) Winnibigoshish Lake .....6.0; 
    (iii) Pokegama Lake ..........6.0; 
    (iv) Sandy Lake ..............7.0; 
    (v) Pine River ...............9.0; 
    (vi) Gull Lake ...............5.0; 
    (6) prescribes maximum discharges when the elevations fall 
below the stages; and 
    (7) prescribes maximum elevations and amounts of discharge 
from each lake to stabilize and effectuate the desired stages 
and, as practicable, does not allow the elevation to exceed the 
following maximum lake stages: 
    (i) Leech Lake ...............3.5; 
    (ii) Winnibigoshish Lake ....12.0; 
    (iii) Pokegama Lake .........12.0; 
    (iv) Sandy Lake .............11.0; 
    (v) Pine River ..............14.0; 
    (vi) Gull Lake ...............7.0.  [110.49] 
    (b) The plan developed by the commissioner must consider 
the following conditions: 
    (1) the necessity for changing discharges to meet 
emergencies resulting from unexpected or abnormal inflows; 
    (2) the possibility of overriding requirements of the 
federal government for substantial discharges to meet reasonable 
and substantial navigation requirements; and 
    (3) the overriding authority and needs as prescribed by the 
United States Department of the Army Corps of Engineers in 
discharging their functions of requiring additional storage 
capacity for flood control purposes.  [110.50] 
    Subd. 4.  [NOTICE OF PLAN.] Before the plan of operation 
for a headwater lake is effective, the commissioner must publish 
a notice of hearing on the plan of operation for two weeks in a 
newspaper in each county where the affected waters are located.  
[110.51] 
    Subd. 5.  [HEARING ON PLAN.] (a) The hearing must be 
conducted by the commissioner or an appointed referee.  The 
hearing will not be governed by legal rules of evidence, but the 
findings of fact and orders, to be made and formulated by the 
commissioner, must be predicated only on relevant, material, and 
competent evidence.  
    (b) Interested parties must have an opportunity to be 
heard, under oath, and are subject to cross examination by 
adverse parties and by the attorney general or the attorney 
general's representative who shall represent the commissioner at 
the hearing.  
    (c) The findings of fact and orders incorporating the plan 
determined by the commissioner must be published for two weeks 
in the same manner as the notice of hearing.  [110.51] 
    Subd. 6.  [APPEAL.] A riparian owner or water user 
aggrieved by the commissioner's findings has the right to appeal 
by 30 days after completion of publication of the findings and 
order to the district court of a county where the regulated 
water is located.  The appeal shall be determined by the court 
on the record made before the commissioner.  Issues on the 
appeal are limited to the legal rights of the parties and 
whether the findings of the commissioner are reasonably 
supported by the evidence at the hearing.  [110.52] 
    Subd. 7.  [MODIFICATIONS.] (a) After a plan has been put 
into effect, the commissioner is authorized to modify the stages 
sought to be maintained by modifying the plan with respect to 
any of the lakes involved to the extent of one foot in elevation 
according to the zeros of the present government gauges without 
holding additional hearings, except a departure from the 
elevation target may not be made to reduce proposed stages below 
the minimums prescribed by subdivision 3, paragraph (a), clause 
(5), during the recreational season.  
    (b) A modification of the established plan that departs by 
more than one foot in elevation may be placed into effect only 
after a hearing is held in the same manner as the hearing 
establishing the plan as provided under subdivisions 4 and 5.  
[110.53] 

                    DAM CONSTRUCTION AND MAINTENANCE 
    Sec. 43.  [103G.501] [CONSTRUCTION OF PRIVATE DAMS ON 
NON-NAVIGABLE WATERS.] 
    Subdivision 1.  [PROCEDURE TO REQUIRE FLOWAGE RIGHTS.] If a 
person desires to raise and extend or erect and maintain a dam 
on the person's property across a stream or other watercourse 
that is not navigable to create or improve a waterpower for 
milling or manufacturing purposes and property owned by other 
persons will be overflowed or otherwise damaged, the person 
desiring to erect or extend or raise the dam may acquire the 
right to do so by petitioning the court and having damages 
ascertained and paid as prescribed in chapter 117.  [110.14] 
    Subd. 2.  [DAM MAY NOT DAMAGE PREVIOUS WATERPOWER.] A dam 
may not be erected, raised, or maintained under this section 
that damages a waterpower previously developed.  [110.14] 
    Subd. 3.  [PROJECT AND REPAIR COMPLETION TIMES.] If the 
right to erect, raise, or extend a dam is acquired under 
subdivision 1, the project must be started within one year, 
completed, and the waterpower applied to the purpose stated in 
the petition within three years after the right to erect, raise, 
or extend the dam is acquired.  If a dam or the machinery 
connected with the dam is destroyed, the rebuilding of the dam 
or machinery must be started and completed within the same 
periods after the destruction.  [110.15] 
    Subd. 4.  [FORFEITURE.] Failure to comply with subdivision 
3 or failure to operate a mill or machinery for one consecutive 
year after it is erected forfeits the rights acquired under 
subdivision 1 unless the owner is an infant, or is otherwise 
legally disabled, in which case the periods under this section 
begin after the disability is removed.  [110.15] 
    Sec. 44.  [103G.505] [DAM CONSTRUCTION AND MAINTENANCE BY 
STATE.] 
    Subdivision 1.  [AUTHORIZATION.] The commissioner may 
construct, maintain, and operate dikes, dams, and other 
structures necessary to maintain uniform water levels 
established under this chapter to improve navigation, protect 
and improve domestic water supply, protect and preserve fish and 
other wildlife, protect the public interest in the shore and 
shorelines of public waters, and promote public health.  
[105.48] 
    Subd. 2.  [AUTHORITY TO ACQUIRE LAND.] The commissioner may 
acquire lands or any necessary interest in lands by purchase, 
gift, or condemnation.  [105.48] 
    Subd. 3.  [OPERATION OF DAMS ON STATE PROPERTY.] Dams owned 
by the state or built on property owned or controlled by the 
state must be maintained under the direction of the commissioner 
and operated under the commissioner's direction and control.  
[105.48] 
    Subd. 4.  [ACCEPTANCE OF LOCAL FUNDING.] The commissioner 
may accept funds from local governmental and civic agencies or 
persons to acquire property for or to construct, maintain, or 
operate dams and control structures.  [105.48] 
    Sec. 45.  [103G.511] [PUBLICLY-OWNED DAM REPAIR.] 
    Subdivision 1.  [AUTHORIZATION.] The commissioner may:  
    (1) repair or reconstruct state-owned dams; 
    (2) make engineering evaluations related to the repair or 
reconstruction of dams owned by local governmental units; and 
    (3) grant aid to local governmental units to repair or 
reconstruct dams owned by local governmental units.  [105.482 s. 
3] 
    Subd. 2.  [ENGINEERING EVALUATIONS.] The engineering 
evaluations may include studies of the feasibility, 
practicality, and environmental effects of using dams for 
hydroelectric power generation.  [105.482 s. 3] 
    Subd. 3.  [FUNDING.] (a) Except as provided in this 
section, a grant to a local government unit may not exceed the 
amount contributed to the project by the local government unit 
from local funds.  
    (b) Federal general revenue sharing money may be counted as 
local funds, but other federal grants or loans must be used to 
reduce equally the state share and the local share of project 
costs.  [105.482 s. 3] 
    (c) A grant to study the feasibility, practicality, and 
environmental effects of using a dam for hydroelectric power 
generation may be for an amount up to 90 percent of the costs of 
the study.  [105.482 s. 3] 
    Subd. 4.  [INVESTIGATION.] The commissioner may repair or 
reconstruct a state-owned dam or make a grant to a local 
governmental unit only after making an investigation of the 
dam.  [105.482 s. 4] 
    Subd. 5.  [APPLICATION.] A local governmental unit desiring 
a grant for the repair or reconstruction of a dam may apply for 
the grant on forms supplied by the commissioner.  
    Subd. 6.  [DETERMINATION OF GRANT.] The commissioner shall 
consider all relevant factors in determining whether to repair 
or reconstruct a state-owned dam or to make a grant to a local 
governmental unit including: 
    (1) the age and type of construction of the dam; 
    (2) the use of the dam for water supply, flood control, 
navigation, hydroelectric power generation, recreation, wildlife 
management, scenic value, or other purposes related to public 
health, safety, and welfare; 
    (3) the consequences of abandonment, removal, or alteration 
of the dam; 
    (4) prospective future uses of the dam; and 
    (5) the relative importance of the dam to the statewide 
water resource program.  [105.482 s. 4] 
    Subd. 7.  [HEARING.] The commissioner may hold a public 
hearing under section 36 on the proposed repair or 
reconstruction after giving notice.  If the hearing is held at 
the request of a local government unit, the costs of publishing 
notice and of taking and preparing the stenographic record must 
be paid by the local government unit.  [105.482 s. 4] 
    Subd. 8.  [OPERATION AGREEMENT.] To receive a grant the 
local government unit must enter into an agreement with the 
commissioner giving assurance that the government unit will 
operate and maintain the dam in a safe condition for the benefit 
of the public and must agree to other conditions the 
commissioner considers reasonable.  [105.482 s. 4] 
    Subd. 9.  [LIMITATIONS.] (a) If the cost of repair or 
reconstruction of a state-owned dam or a grant to a local 
government unit is less than $250,000, the commissioner may 
direct that the state-owned dam be repaired or reconstructed or 
that a grant be made to repair or reconstruct a dam owned by a 
local government unit.  
    (b) If the cost of repair or reconstruction of a 
state-owned claim or grant to a local government unit is 
$250,000 or more, the commissioner may recommend the project to 
the legislature for its consideration and action, except in an 
emergency under paragraph (c).  
    (c) The commissioner, with the approval of the commissioner 
of finance after consulting with the legislative advisory 
commission, may direct that a state-owned dam be repaired or 
reconstructed or a grant be made to a local government unit if 
the commissioner determines that an emergency exists and: 
     (1) there is danger that life will be lost; or 
     (2) that substantial property losses will be suffered if 
action is not promptly taken.  [105.482 s. 5] 
    Subd. 10.  [LOANS FOR LOCAL SHARE OF PROJECT COSTS.] (a) If 
the commissioner decides to recommend a dam repair or 
reconstruction grant for a local government unit to the 
legislature, the commissioner must notify the local government 
unit and the commissioner of finance of the decision.  After 
being notified by the commissioner of natural resources, the 
local government unit may apply to the commissioner of finance 
on forms supplied by the commissioner of finance for a loan up 
to 90 percent of the local share of the project costs.  
     (b) The loan is repayable over a period not longer than 20 
years, with interest at a rate sufficient to cover the cost to 
the state of borrowing the money.  
     (c) A local government unit receiving a dam safety loan 
must levy for the loan payment in the year the loan proceeds 
were received and each later year, until the loan is paid.  The 
levy must be for: 
    (1) the amount of the annual loan payment; or 
    (2) the amount of the loan payment less the amount the 
local government unit certifies is available from other sources 
for the loan payment. 
    (d) Upon approval of the project grant by the legislature, 
the commissioner of finance shall make the loan in an amount and 
on terms that are appropriate.  Loans made under this 
subdivision do not require approval by the electors of the local 
government unit as provided in section 475.58.  
     (e) Principal and interest payments received by the 
commissioner of finance in repayment of these loans are 
appropriated to the state building bond account.  [105.482 s. 
5a] 
    Subd. 11.  [COMMISSIONER'S ORDER TO REPAIR OR RECONSTRUCT A 
DAM.] 
    (a) If a local government unit fails to comply with a 
commissioner's order to repair or remove a dam under section 46, 
the commissioner may repair or remove the dam as provided in 
this subdivision.  
    (b) The commissioner must hold a hearing under section 36 
on the failure of the local government unit to repair or remove 
the dam.  After the hearing, the commissioner must make findings 
specifying the failure of the local government unit to act and 
shall, by order, assume the powers of the legislative authority 
of the local government unit in regard to the repair or removal 
of dams.  
     (c) After issuing the order, the commissioner has the same 
powers, insofar as applicable to the repair or removal of dams, 
as the commissioners of administration and the pollution control 
agency have in the construction, installation, maintenance, or 
operation of a municipal disposal system, or part of a system, 
or issuing bonds and levying taxes under section 115.48.  
[105.482 s. 6] 
    Subd. 12.  [PRIORITY LIST OF DAMS NEEDING REPAIR.] After 
reviewing examinations of dams owned by the state and local 
government units, the commissioner shall prioritize the state 
and local government unit dams in need of repair or 
reconstruction and report annually to the legislature.  The 
commissioner must prioritize projects considering danger to 
life, damage to property, and the factors listed in subdivision 
6.  [105.482 s. 7] 
    Sec. 46.  [103G.515] [EXAMINATION AND REPAIR OF DAMS AND 
RESERVOIRS.] 
    Subdivision 1.  [EXAMINATION OF STRUCTURE.] The 
commissioner may examine a reservoir, dam, control structure, or 
waterway obstruction after receiving a complaint or determining 
an examination is needed.  The commissioner, or an authorized 
agent, must be granted access at any reasonable time to examine 
the reservoir, dam, control structure, or waterway obstruction.  
[105.52] 
    Subd. 2.  [ADDITIONAL ENGINEERING INVESTIGATIONS.] (a) 
After making an examination, if the commissioner determines that 
additional engineering investigations are necessary to determine 
the safety of a dam, reservoir, control structure, or waterway 
obstruction and the nature and extent of the necessary repairs 
or alterations, the commissioner must notify the owner to have 
investigations made at the owner's expense.  
    (b) The result of the investigation must be filed with the 
commissioner for use in determining the condition of the 
structures and the need for their repair, alteration, or 
removal.  [105.52] 
    Subd. 3.  [REPAIR, ALTERATION, OR REMOVAL REQUIRED.] (a) If 
the commissioner determines that the reservoir, dam, control 
structure, or waterway obstruction is unsafe or needs repair or 
alteration, the commissioner shall notify the owner of the 
structure with an order to repair, alter, or remove the 
structure.  The order must be issued in the same manner as if 
the owner had applied for a permit for the repairs, alterations, 
or removal.  
    (b) The engineering investigations or the work of repair, 
alteration, or removal must begin and be completed within a 
reasonable time prescribed by the commissioner.  [105.52] 
    Subd. 4.  [DAM INSPECTION FEE.] (a) The commissioner shall 
adopt rules which must include a fee schedule to cover the cost 
of dam inspection and must classify structures to adequately 
define risks and hazards involved in relation to public health, 
safety, and welfare.  
    (b) The rules may not impose a field inspection fee on any 
state agency, political subdivision of the state, or federal 
governmental agency.  [105.535] 
    Sec. 47.  [103G.521] [TRANSFER OF AUTHORITY OVER STATE 
DAMS.] 
    Subdivision 1.  [APPLICATION FOR TRANSFER.] (a) Upon 
application by resolution of the governing body of a local 
government unit authorized to maintain and operate dams or other 
control structures affecting public waters, the commissioner 
with the approval of the executive council, may transfer to the 
local government unit the custody of a dam or other control 
structures owned by the state and under the supervision or 
control of the commissioner if the commissioner determines that 
the transfer will promote the best interests of the public.  The 
transfer must be made by order of the commissioner on the terms 
and conditions the commissioner sets for maintenance and 
operation of the project.  
    (b) In connection with the transfer, the commissioner may 
convey land, easements, or other state property pertaining to 
the project to the transferee by deed or another appropriate 
instrument in the name of the state, subject to conditions and 
reservations prescribed by the commissioner.  A duplicate of 
each order, conveyance, or other instrument executed by the 
commissioner in connection with a transfer must be filed with 
the commissioner of finance.  [105.63 s. 1] 
    Subd. 2.  [PAYMENT FOR TRANSFER.] A transfer may be made 
with or without payment of money to the state, as agreed upon 
between the commissioner and the transferee.  If a payment is 
received as part of the transfer, the amount must be deposited 
into the state treasury and credited to the general fund.  
[105.63 s. 2] 
    Sec. 48.  [103G.525] [LIMITATIONS ON TRANSFERS OF OWNERSHIP 
OF DAMS.] 
    The state, a state department or agency, a county, 
municipality, town, or other governmental entity may not 
purchase or accept as a gift a privately owned dam subject to 
permit requirements until: 
    (1) the commissioner has examined the dam; 
    (2) the commissioner has prepared a report of the 
examination; 
    (3) the report has been filed with the legislature; and 
    (4) the legislature has had an opportunity to consider the 
report and has not prohibited the purchase or gift during the 
legislative session in which the report is filed, or, if the 
report is filed when the legislature is not in session, the 
legislature has not prohibited the gift or purchase at the next 
session.  [105.521] 
    Sec. 49.  [103G.531] [DAM PERMIT EXCEPTIONS.] 
    Subdivision 1.  [PERMIT NOT REQUIRED FOR ORIGINAL 
CONSTRUCTION OF STRUCTURES BEFORE JULY 1, 1937.] This chapter 
does not authorize the commissioner to require a permit for the 
original construction of dams, reservoirs, or control works in 
existence on and before July 1, 1937.  [105.53] 
    Subd. 2.  [MINOR DAM EXCLUSION.] The commissioner shall 
adopt rules that exclude minor dams such as those less than six 
feet in height or that impound less than 50 acre-feet of water 
storage at maximum storage elevations from permit requirements.  
The rules do not apply to a barrier six feet or less in height, 
regardless of storage capacity, or to a barrier creating a 
storage capacity at maximum water storage elevation of 15 
acre-feet or less, regardless of height.  [105.535] 
    Sec. 50.  [103G.535] [HYDROPOWER GENERATION.] 
    Subdivision 1.  [PUBLIC PURPOSE.] The legislature finds 
that: 
    (1) the public health, safety, and welfare of the state is 
also promoted by the use of state waters to produce 
hydroelectric or hydromechanical power in a manner consistent 
with laws relating to dam construction, reconstruction, repair, 
and maintenance; and 
    (2) the leasing of existing dams and potential dam sites 
primarily for power generation is a valid public purpose.  
[105.482 s. 8] 
    Subd. 2.  [AUTHORITY FOR LEASE OF SITES.] A local 
government unit, or the commissioner with the approval of the 
state executive council for state-owned dams, may provide by a 
lease or development agreement for the development and operation 
of dams, dam sites, and hydroelectric or hydromechanical power 
generation plants by an individual, a corporation, an 
organization, or other legal entity on terms and conditions in 
subdivision 5.  [105.482 s. 8] 
    Subd. 3.  [INSTALLATIONS LESS THAN 15,000 KILOWATTS UNUSED 
ON JANUARY 1, 1984.] If an installation of 15,000 kilowatts or 
less at a dam site and reservoir was unused on January 1, 1984, 
in connection with the production of hydroelectric or 
hydromechanical power, the lease or development agreement 
negotiated by the local government unit and the developer 
constitutes full payment by the lessee and may be in lieu of all 
real or personal property taxes that might otherwise be due to a 
local government unit.  [105.482 s. 8] 
    Subd. 4.  [MUNICIPALITY OR TOWN APPROVAL.] If the dam, dam 
site, or power generation plant is located in or contiguous to a 
municipality or town, other than the lessor local government 
unit, the lease or agreement is not effective unless it is 
approved by the governing body of the municipality or town.  
[105.482 s. 8] 
    Subd. 5.  [CONTENTS OF DEVELOPMENT AGREEMENT.] (a) An 
agreement for the development or redevelopment of a hydropower 
sight must contain provisions to assure the maximum financial 
return to the local government unit or the commissioner.  
[105.482 s. 9] 
    (b) An agreement may contain:  
    (1) the period of the development agreement up to 99 years, 
subject to negotiations between the parties, and conditions for 
extension, modification, or termination; 
    (2) provisions for a performance bond on the developer or 
certification that the equipment and its installation have a 
design life at least as long as the lease; and 
    (3) provisions to assure adequate maintenance and safety in 
impoundment structures and access to recreational sites.  
[105.482 s. 9] 
    Sec. 51.  [103G.541] [MUNICIPAL DAMS ON RED RIVER OF THE 
NORTH.] 
    Subdivision 1.  [AUTHORITY TO CONSTRUCT DAM.] A 
municipality owning or permanently controlling property where a 
proposed dam is to be constructed may: 
    (1) construct a dam on the property and across that portion 
of the Red River of the North that forms a part of the boundary 
common to this state and the state of North Dakota to conserve 
water for municipal, commercial, and domestic use; and 
    (2) construct, in connection with the dam structures, 
fishways, raceways, sluiceways, and wasteways necessary or 
convenient for the proper construction and utility of the dam 
and as may be required by law.  [110.18] 
    Subd. 2.  [CONSENT OF THE UNITED STATES AND NORTH 
DAKOTA.] If required by law or treaty, the municipality must 
first obtain the consent of the United States and of the state 
of North Dakota for the construction.  [110.18] 
    Sec. 52.  [103G.545] [DAMS AND WATER LEVEL CONTROL IN COOK, 
LAKE, AND ST. LOUIS COUNTIES.] 
    Subdivision 1.  [PURPOSE.] The purpose of this section is 
to preserve shorelines, rapids, waterfalls, beaches, and other 
natural features in an unmodified state of nature.  [110.13] 
    Subd. 2.  [LEGISLATIVE APPROVAL REQUIRED FOR CONTROL 
STRUCTURES AND WATER LEVELS.] Except as provided in this 
section, specific authority must be given by law after 
consideration by the legislature with regard to control 
structures or water levels within or bordering on the area of 
Cook, Lake, and St. Louis counties designated in the Act of 
Congress of July 10, 1930, United States Code, title 46, section 
1020, before: 
    (1) dams or additions to existing dams may be constructed 
in or across public waters; 
    (2) alteration of the natural water level or volume of 
flowage of public waters may be made; or 
    (3) an easement for flooding or overflowing or otherwise 
affecting state property adjacent to public waters may be 
granted.  [110.13] 
    Subd. 3.  [RECREATIONAL AND LOGGING DAMS.] With the written 
approval of the commissioner and the signed authority of the 
executive council, dams for public recreational uses or dams 
essential for logging or for logging reservoirs that do not 
exceed 100 acres in size may be constructed to temporarily 
maintain water levels up to but not higher than the normal 
high-water marks.  The approval is subject to fees recommended 
by the commissioner, time limitation, and other conditions 
designed fully to protect the public interest and purpose of 
this section.  [110.13] 
    Subd. 4.  [EXCEPTION AND REQUIREMENT FOR CERTAIN WATERPOWER 
SITES.] (a) This section does not apply to the portion of a 
proposed development for waterpower purposes that was actually 
occupied and maintained by an applicant for a license to make 
the development under the terms of the federal waterpower act if 
the application for the license was pending on or before January 
1, 1928.  
    (b) The occupant may occupy and use the state lands and 
waters occupied on January 1, 1928, and used up to an elevation 
not exceeding two feet above the lowest crest of the spillway or 
overflow dam of the occupant as constructed on January 1, 1928, 
for as long as the land and water is needed for waterpower 
purposes.  Water control structures may not be used higher than 
the structures used before January 1, 1928.  
    (c) The occupant shall pay to the state annual compensation 
determined by the commissioner after investigation for the use 
of the state lands affected.  The occupant must promptly pay the 
state reasonable compensation for any further damage to state 
lands or timber caused by waterpower development, other than is 
covered by the compensation paid for the use of the lands.  
[110.13] 
    Subd. 5.  [PENALTY.] Any person who willfully or knowingly 
violates a provision of this section or of an order made by the 
commissioner under this section is guilty of a gross misdemeanor.
[110.13] 
    Sec. 53.  [103G.551] [WATERPOWER DAMS USED ONLY FOR WATER 
LEVEL REGULATIONS.] 
    Subdivision 1.  [APPLICABILITY.] This section and section 
54 apply to public waters if: 
    (1) a dam constructed or maintained in any manner has 
existed in the outlet of the lake affecting the water level of 
the lake for a continuous period of at least 15 years; 
    (2) the lake has been used by the public for navigation, 
fishing, hunting, or other beneficial public purposes 
continuously throughout the 15-year period when allowed by 
natural conditions; 
    (3) the use of the dam for a purpose other than regulating, 
controlling, or maintaining the water level of the lake in aid 
of navigation, propagation of fish or waterfowl, or other 
beneficial public purposes has been discontinued; 
    (4) continued regulation, control, or maintenance of the 
water levels of the lake by the dam in the same manner as during 
the 15-year period would be desirable and in the public 
interests in navigation, propagation of fish or waterfowl, or 
other beneficial public uses of the lake; and 
      (5) discontinuance of regulation of water levels through 
deterioration or removal of the dam would be detrimental to 
public interests in navigation, propagation of fish and 
waterfowl, or other beneficial public uses.  [110.31] 
    Subd. 2.  [DEDICATION OF PERPETUAL FLOWAGE EASEMENT.] (a) 
Owners of property and interests in property bordering on a lake 
or connecting waters affected by a dam are considered to have 
dedicated to the state for the use and benefit of the public a 
perpetual flowage easement on the property for all overflow and 
other effects of water on their property resulting from the 
existence, maintenance, or operation of the dam during the 
15-year period.  
    (b) The perpetual flowage easement has the extent and 
effect as if the state had:  
    (1) owned and controlled the dam; 
    (2) regulated, controlled, and maintained the water levels 
of the lake and connecting waters affected by the dam for public 
use and benefit under the conditions existing during the 15-year 
period; and 
    (3) acquired the flowage easement by prescription.  
[110.32] 
    Subd. 3.  [CONVEYANCE OF FLOWAGE EASEMENT TO COMMISSIONER 
AUTHORIZED.] The commissioner may accept a conveyance or release 
of a property or an interest in property that grants the state a 
flowage easement on the property for overflow or other effects 
of water resulting from the existence, maintenance, or operation 
of a dam, or reconstruction or improvement of a dam, or 
construction of a dam in the outlet of a lake to regulate, 
control, or maintain the water level of the lake in aid of 
navigation, propagation of fish or waterfowl, or other 
beneficial public purposes.  [110.33] 
    Subd. 4.  [DETERMINATION OF EASEMENT RIGHTS.] (a) An action 
may be brought in the name of the state in the district court of 
the county where affected property is located to determine:  
    (1) the extent and effect of a flowage easement obtained by 
the state; 
    (2) the title and rights of the state under the flowage 
easement; 
    (3) adverse claims to the flowage easement; and 
    (4) the rights of all parties interested in or affected by 
the flowage easement.  
     (b) The action may be brought by the attorney general upon 
the attorney general's own initiative or on request of the 
commissioner.  On request of the attorney general, the county 
attorney of the county where the property affected by the 
flowage easement is located shall assist in bringing the action. 
    (c) Part or all of the property affected by the flowage 
easement that is bordering on one lake and the connecting waters 
of the lake and located in one county may be included in one 
action.  The parties interested in the affected property may be 
joined as defendants in the action.  
    (d) Except as otherwise provided in this section and 
section 54, the law relating to actions for the determination of 
title to real estate in the district court governs the action.  
    (e) The cost of the action may be paid from money 
appropriated for the maintenance, operation, and control of the 
dam involved, or may be paid by the county where the lake and 
connecting waters are located.  [110.34] 
    Subd. 5.  [HIGHER ORDINARY HIGH WATER LEVELS.] (a) If the 
water levels maintained by a dam that has existed as provided in 
subdivision 1, have established an ordinary high water level 
above the natural ordinary high water level, the ordinary high 
water level reestablishes the natural ordinary high water level 
of the waters.  Property owners and the owners of an interest in 
property affected by the reestablished natural ordinary high 
water level are presumed to have consented to the reestablished 
natural ordinary high water level and to have dedicated their 
property to the state for the use and benefit of the public.  
[110.36] 
    (b) The commissioner may determine the reestablished 
natural ordinary high water level in the same manner as provided 
by law for the determination of natural ordinary high water 
levels.  The determination is prima facie evidence of the level 
and has the same effect as a determination of natural ordinary 
high water level by the commissioner.  [110.36] 
     Subd. 6.  [EASEMENTS, APPURTENANT TO DAM.] A flowage 
easement obtained by the state under this section attaches and 
is appurtenant to a dam that is acquired or taken over and 
maintained or controlled in aid of public navigation, 
propagation of fish or waterfowl, or other beneficial public 
purposes by the commissioner or another agency of the state, a 
county, political subdivision, or a combination authorized by 
law.  The flowage easement attaches and is appurtenant to the 
reconstruction or improvement of the dam and to a new dam 
constructed in the outlet of the lake that is taken over and 
maintained or controlled by the commissioner, a state agency, a 
county, a political subdivision, or a combination authorized by 
law.  [110.35] 
    Subd. 7.  [STATE CONTROL OF ABANDONED DAMS.] (a) If a dam 
not owned or controlled by the state or a public agency is not 
used or maintained by or under the authority of the owner of the 
dam for a lawful purpose for a continuous period of at least 15 
years, the dam and the dam site are presumed to be abandoned by 
the owner and dedicated to the state with flowage easements 
appurtenant for the use and benefit of the public.  The 
commissioner:  
    (1) shall take possession of the dam and the dam site and 
the flowage easements on behalf of the state, and use, maintain, 
operate, and control the dam, dam site, and flowage easements 
for public purposes; or 
     (2) may dispose of the dam or dam site, or flowage 
easements for public purposes as provided in paragraph (b) or as 
otherwise authorized by law.  
     (b) The commissioner may dispose of a dam, dam site, or 
flowage easement after: 
     (1) publishing notice of a hearing on disposing of the dam, 
dam site, or flowage easement in a legal newspaper in the county 
where the dam is situated; 
     (2) holding a hearing; and 
     (3) determining that it is not in the public interest for 
the state to use, maintain, operate, and control the dam.  
    (c) The commissioner may construct other or additional 
control works to supplement or supplant the dam under other 
provisions of law.  
    (d) The title of the state to a dam, dam site, or flowage 
easements acquired under this subdivision may be established and 
determined by action in the district court as provided by law 
for actions for the determination of title to real estate.  
    (e) Before taking possession of an abandoned dam, dam site, 
or flowage easements, the commissioner must file a written 
certificate executed by the commissioner stating the dam is 
abandoned and is acquired by the state, in the office of the 
county recorder of the county where the dam is situated.  The 
responsibility for a dam, dam site, or flowage easement is not 
on the state until the certificate is recorded or a judgment 
entered in an appropriate action establishing the state's title 
to the dam, dam site, and flowage easement.  If a county or 
other political subdivision of the state or combination desires 
to take over an abandoned dam, dam site, and flowage easements 
and maintain, operate, control, or dispose of the dam, dam site, 
and flowage easement for public purposes, the commissioner may 
convey the dam, dam site, and flowage easement from the state to 
the county or other political subdivision or combination.  
[110.37] 
    Sec. 54.  [103G.555] [STATUTE OF LIMITATIONS FOR ACTIONS 
AGAINST PUBLIC OFFICIALS.] 
    An action or proceeding against the state, the 
commissioner, a county, or political subdivision or their 
officers or agents relating to the taking over, construction, 
reconstruction, repair, improvement, maintenance, operation, or 
control of a dam subject to section 53 and this section or the 
effects of water levels regulated, controlled or maintained by a 
dam is barred unless the action is started within one year after 
the taking over or after the completion of the construction, 
reconstruction, repair, or improvement.  [110.38] 
    Sec. 55.  [103G.561] [STATUTE OF LIMITATIONS FOR ACTIONS ON 
FLOWAGE EASEMENTS AND ORDINARY HIGH WATER LEVELS.] 
    An action or proceeding that affects or seeks to adversely 
affect a perpetual flowage easement dedicated to the state for 
the use and benefit of the public as provided in section 53, 
subdivision 2, or the maintaining or the right to maintain a 
reestablished natural ordinary high water level above the 
natural ordinary high water level of waters for which the state 
holds a perpetual flowage easement, is barred unless the action 
or proceeding is commenced within one year from the date of the 
order of the commissioner determining the ordinary high water 
level of the waters under section 53, subdivision 5.  [110.40] 

                           FLOWAGE EASEMENTS 
    Sec. 56.  [103G.565] [RIGHT TO OVERFLOW, OBSTRUCT, OR 
IMPAIR HIGHWAYS GRANTED BY GOVERNING BODY.] 
    Subdivision 1.  [AUTHORITY.] The governing body of a town 
or municipality may allow the overflow, obstruction, or 
impairment of a public street or other highway, or the digging 
of a raceway in a public street or highway if it is necessary 
for creating, improving, or operating a waterpower.  [110.16] 
    Subd. 2.  [PROCEDURE.] (a) The waterpower must petition the 
governing body of the town or municipality where the street or 
highway is located for approval.  
    (b) The governing body of the town or municipality must 
post notice of the time, location, and purpose of the meeting on 
the petition for ten days.  At the meeting, testimony may be 
taken.  The governing body must make an order specifying the 
terms and conditions of the approval.  
    (c) The expenses of the meeting must be paid by the 
petitioner, whether the petition is granted or refused.  
[110.16] 
    Sec. 57.  [103G.571] [BANK REPAIR ON PROPERTY WHERE 
OVERFLOW RIGHTS ARE ACQUIRED.] 
    Subdivision 1.  [RIGHT TO REPAIR.] If the right to overflow 
the property of another by means of a dam is acquired by 
condemnation or contract and afterwards the waters of the stream 
are diverted because the banks of the property overflowed break 
away, the owner of the dam may enter the property of the person 
where the right to overflow is acquired and repair the banks to 
restore the previous flow of the stream.  [110.17] 
    Subd. 2.  [DAMAGES OF ENTRY AND REPAIR.] The damages caused 
by entry and repair under subdivision 1 must be paid by the 
owner of the dam.  [110.17] 
    Sec. 58.  [103G.575] [GRANT OF FLOWAGE EASEMENTS IN UPPER 
RED LAKE REGION.] 
    The commissioner on behalf of the state and with the 
approval of the governor may grant flowage easements on state 
owned land, or tax-forfeited land, in the region of Upper Red 
Lake upon the terms and conditions prescribed by the 
commissioner.  [84.158] 

                        WATER AERATION AND DEICING
    Sec. 59.  [103G.601] [ICE-CUTTING FENCES AND GUARDS.] 
    Subdivision 1.  [FENCE AND GUARD REQUIREMENT.] A person 
cutting ice in or on waters entirely or partly in the state to 
remove ice must surround the cuttings and openings with fences 
or guards sufficient to warn persons of the cutting before the 
cutting is started.  The fence or guard must be maintained until 
the ice has formed in the openings to the thickness of at least 
six inches.  [378.21] 
    Subd. 2.  [PENALTY.] A person who fails to comply with this 
section is guilty of a misdemeanor.  [378.21] 
    Sec. 60.  [103G.605] [DEICING WATER BODIES.] 
    A county board, lake improvement district, or governing 
body of a municipality under section 459.20 may regulate the 
construction and use of mechanical and chemical means of deicing 
the body of water in a manner consistent with rules of the 
commissioner.  [378.32 s. 5; 378.51 s. 3; 459.20] 
    Sec. 61.  [103G.611] [WATER AERATION SAFETY.] 
    Subdivision 1.  [REQUIREMENT.] A person operating an 
aeration system on public waters under a water aeration permit 
must comply with the sign posting requirements of this section 
and applicable rules of the commissioner.  [378.22 s. 1] 
    Subd. 2.  [POSTING.] (a) If an aeration system is used on 
the ice of public waters, signs must be posted by the water 
aeration permittee at a height of from four to six feet in a 
rectangular pattern at each corner of the open water, and 
additional signs between the corner signs so that a sign is 
posted at least every 100 feet. 
    (b) Additional signs must be posted by the permittee on the 
shoreline of the public waters at each public access point and 
other areas commonly used by the public for access to the lake.  
    (c) The signs must comply with the applicable rules of the 
commissioner.  [378.22 s. 2] 
    Subd. 3.  [PUBLICATION OF NOTICE.] Advance public notice of 
the commencement of aeration, authorized by a water aeration 
permit from the commissioner during periods of ice cover on 
public waters, must be given by the permittee.  Minimum notice 
consists of publication of the location and date of commencement 
of the aeration system in a newspaper of general circulation in 
the area where the system is proposed to be operated at least 
two times between five and 60 days before aeration is started.  
[378.22 s. 3] 
    Subd. 4.  [EVIDENCE.] In an action for negligence arising 
out of the conduct of aeration operations authorized by a water 
aeration permit from the commissioner during periods of ice 
cover on public waters, evidence of compliance with the posting 
and publication requirements of this section and applicable 
rules and permit provisions of the commissioner are prima facie 
evidence of the exercise of due care by the permittee.  [378.22 
s. 4] 
    Subd. 5.  [WATER AERATION RULES.] The commissioner shall 
adopt rules relating to the issuance of permits for aeration, 
bubbler, water circulation, and similar systems used to increase 
dissolved oxygen or to maintain open water on the surface of 
public waters.  [378.22 s. 5] 
    Subd. 6.  [PUBLIC WATERS WITHOUT ACCESS.] (a) A riparian 
landowner may aerate public waters with a permit under this 
subdivision if the public waters do not have a public access and 
the person aerating the public waters owns all of the riparian 
land or all of the possessory rights to the riparian lands.  
    (b) The provisions of this section do not apply to the 
aeration under this subdivision except the public waters must be 
posted as provided under subdivision 2, paragraphs (a) and (c).  
[378.22 s. 6] 

                  HARVEST AND CONTROL OF AQUATIC PLANTS
    Sec. 62.  [103G.615] [PERMITS TO HARVEST OR DESTROY AQUATIC 
PLANTS.] 
    Subdivision 1.  [AUTHORIZATION.] (a) The commissioner may 
issue permits, with or without a fee, to: 
    (1) gather or harvest aquatic plants, or plant parts, other 
than wild rice from public waters; 
    (2) transplant aquatic plants into public waters; 
    (3) destroy harmful or undesirable aquatic vegetation or 
organisms in public waters under prescribed conditions to 
protect the waters, desirable species of fish, vegetation, other 
forms of aquatic life, and the public.  
    (b) Application for a permit must be accompanied by a 
permit fee, if required.  [84.092 s. 1] 
    Subd. 2.  [FEES.] (a) The commissioner shall establish a 
fee schedule for permits to harvest aquatic plants other than 
wild rice, by order, after holding a public hearing.  The fees 
may not exceed $200 per permit based upon the cost of receiving, 
processing, analyzing, and issuing the permit, and additional 
costs incurred after the application to inspect and monitor the 
activities authorized by the permit. 
    (b) A fee may not be charged to the state or a federal 
governmental agency applying for a permit. 
    (c) The money received for the permits under this 
subdivision shall be deposited in the treasury and credited to 
the game and fish fund.  [84.092 s. 2] 
    Subd. 3.  [PERMIT STANDARDS.] The commissioner shall, by 
order, prescribe standards to issue and deny permits under 
subdivision 2.  The standards must ensure that aquatic plant 
control is consistent with shoreland conservation ordinances, 
lake management plans and programs, and wild and scenic river 
plans.  [84.092 s. 3] 
     Sec. 63.  [103G.617] [EURASIAN WATER MILFOIL EDUCATION AND 
MANAGEMENT.] 
    Subdivision 1.  [DEFINITION.] For the purpose of this 
section, "Eurasian water milfoil" means myriophyllum spicatum.  
    Subd. 2.  [INVENTORY.] The commissioner shall inventory and 
monitor the growth of Eurasian water milfoil on lakes in the 
state.  The commissioner may use volunteers to aid in the 
inventory effort.  
    Subd. 3.  [EDUCATION.] The commissioner shall publish and 
distribute informational materials to lakeshore owners and 
boaters on the control problems of Eurasian water milfoil.  
    Subd. 4.  [MANAGEMENT.] The commissioner shall coordinate a 
control program to manage the growth of Eurasian water milfoil 
with appropriate local units of government, special purpose 
districts, and lakeshore associations.  Technical assistance may 
be provided by the commissioner upon request.  
    Subd. 5.  [RESEARCH.] The commissioner shall initiate 
cooperative research with the Freshwater Foundation and the 
University of Minnesota freshwater biological institute to study 
the use of nonchemical methods, including biological control 
agents, for control of Eurasian water milfoil.  [84.0921] 
    Sec. 64.  [103G.621] [COUNTY WEED AND ALGAE DESTRUCTION AND 
REMOVAL.] 
    A county board, lake improvement district, or governing 
body of a municipality under section 459.20 may regulate the 
mechanical and chemical means of removal of weeds and algae from 
the body of water in a manner consistent with the rules of the 
commissioner.  [378.32 s. 5; 378.51 s. 3; 459.20] 
    Sec. 65.  [103G.625] [MUNICIPAL CONTROL OF AQUATIC 
VEGETATION AND ORGANISMS.] 
    Subdivision 1.  [AUTHORITY.] The governing body of a 
municipality or town may expend funds for the control or 
destruction of harmful or undesirable aquatic vegetation or 
organisms in public waters and may cooperate with other 
governing bodies and landowners in the control or destruction.  
[110.71 s. 1] 
    Subd. 2.  [PERMIT REQUIRED.] The control or destruction of 
the aquatic vegetation or organisms may not be started unless a 
permit has been obtained from the commissioner under section 62 
and the work is done in accordance with the terms and conditions 
of the permit.  [110.71 s. 1] 
    Subd. 3.  [FUNDING.] (a) The governing body of a 
municipality or town may use any available funds and may levy a 
tax not to exceed the lesser of (1) 0.01596 percent of taxable 
market value, or (2) 50 cents per capita, to implement this 
section.  [110.71 s. 2] 
    (b) To provide funds in advance of collection of the tax 
levies, the governing body may, at any time after the tax has 
been levied and certified to the county auditor for collection, 
issue certificates of indebtedness in anticipation of the 
collection and payment of the tax.  The total amount of the 
certificates, including principal and interest, may not exceed 
90 percent of the amount of the levy and must become payable 
from the proceeds of the levy not later than two years from the 
date of issuance.  The certificates shall be issued on terms and 
conditions as the governing body may determine and sold as 
provided in section 475.60.  [110.71 s. 3] 
     (c) If the governing body determines that an emergency 
exists, it may make appropriations from the proceeds of the 
certificates for authorized purposes without complying with 
statutory or charter provisions requiring that expenditures be 
based on a prior budget authorization or other budgeting 
requirement.  [110.71 s. 3] 
    (d) The proceeds of a tax levied or an issue of 
certificates of indebtedness must be deposited in a separate 
fund and expended only for purposes authorized by this section.  
If a disbursement is not made from the fund for a period of five 
years, money remaining in the fund may be transferred to the 
general fund.  [110.71 s. 4] 

                                 STREAMS
    Sec. 66.  [103G.701] [STREAM MAINTENANCE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
establish a stream maintenance program.  The program must 
include grants-in-aid to participating counties.  [105.475 s. 2] 
    Subd. 2.  [APPLICATION.] A county desiring to participate 
in the stream maintenance program must submit an application for 
the proposed work to the commissioner on forms provided by the 
commissioner.  Unless waived by the commissioner, the county 
must submit the following information with its application: 
    (1) a map of the county showing the stream and the specific 
reaches of the stream to be maintained; 
    (2) photographs showing the nature and extent of the 
maintenance problem; and 
    (3) a resolution by the county board of commissioners 
asking to participate in the program and agreeing to provide at 
least 25 percent of the cost of the maintenance project.  
[105.475 s. 3] 
    Subd. 3.  [CONTRACT.] After approving a stream maintenance 
project, the commissioner shall contract with the county for 
performance of work necessary to do the project.  The contract 
may provide that the county share of the cost of the project is 
paid in the form of services provided by the county.  [105.475 
s. 4] 
    Subd. 4.  [ELIGIBLE PROJECTS.] The commissioner may grant 
money for:  
    (1) cutting and removal of brush and dead or downed trees; 
and 
    (2) removal of large rocks and other debris such as 
concrete, asphalt, or scrap material.  [105.475 s. 2] 
    Subd. 5.  [GRANTS.] (a) The commissioner must apportion 
grant money according to the relative severity of the 
maintenance problem, the date of application for the grant, and 
the availability of funds.  
    (b) A grant may not exceed 75 percent of the total cost of 
a stream maintenance project.  
    (c) Money may not be disbursed for excavation, filling, or 
for work performed until an application for the project is filed 
with the commissioner.  
    (d) The stream maintenance work must be performed by the 
county or under county supervision.  [105.475 s. 2] 
    Subd. 6.  [COUNTY MATCHING FUNDS.] A county may appropriate 
from its general revenue fund sufficient funds to match the 
grants in aid authorized in this section.  [105.475 s. 5] 
    Sec. 67.  [103G.711] [STATE'S OWNERSHIP OF BED OF NAVIGABLE 
RIVER.] 
    The ownership of the bed and the land under the waters of 
all rivers in the state that are navigable for commercial 
purposes are in the state in fee simple, subject only to the 
regulations made by the United States with regard to the public 
navigation and commerce and the lawful use by the public while 
on the waters.  [465.18] 

                               ARTICLE 8 

                           RECODIFICATION AND
RELOCATION OF PROVISIONS RELATING TO WATER 

                   AND CORRECTION OF CROSS-REFERENCES 
    Section 1.  Minnesota Statutes 1988, section 9.071, is 
amended to read: 
     9.071 [SETTLEMENT OF CLAIMS; OTHER SPECIFIED POWERS.] 
     The council has the powers with respect to the: 
     (1) Cancellation or compromise of claims due the state 
provided in sections 10.11 to 10.15; 
     (2) Timberlands provided in sections 90.031, 90.041, 
90.151; 
     (3) Lands acquired from the United States provided in 
section 94.50; 
     (4) Lands subject to delinquent drainage assessments 
provided in section 84A.20; 
     (5) Transfer of lands between departments of state 
government provided in section 15.16; 
     (6) Sale or exchange of lands within national forests 
provided in sections 92.30 and 92.31; 
     (7) Approval of acquisition of land for camping or parking 
area provided in sections 97A.135 and 97A.141; 
     (8) Modification of iron leases provided in section 93.191; 
     (9) Awarding permits to prospect for iron ore provided in 
section 93.17; 
    (10) Approval of rules for issuance of permits to prospect 
for minerals under state lands provided in section 93.08; 
    (11) Construction of dams provided in article 7, section 
110.13 52.  
    Sec. 2.  Minnesota Statutes 1988, section 16B.62, 
subdivision 1, is amended to read: 
     Subdivision 1.  [MUNICIPAL ENFORCEMENT.] The state building 
code applies statewide and supersedes the building code of any 
municipality.  The state building code does not apply to 
agricultural buildings except with respect to state inspections 
required or rulemaking authorized by article 6, section 10, and 
sections 104.05, 326.244, and 216C.19, subdivision 8.  All 
municipalities shall adopt and enforce the state building code 
with respect to new construction within their respective 
jurisdictions.  
     If a city has adopted or is enforcing the state building 
code on June 3, 1977, or determines by ordinance after that date 
to undertake enforcement, it shall enforce the code within the 
city.  A city may by ordinance extend the enforcement of the 
code to contiguous unincorporated territory not more than two 
miles distant from its corporate limits in any direction.  Where 
two or more noncontiguous cities which have elected to enforce 
the code have boundaries less than four miles apart, each is 
authorized to enforce the code on its side of a line equidistant 
between them.  Once enforcement authority is extended 
extraterritorially by ordinance, the authority may continue to 
be exercised in the designated territory even though another 
city less than four miles distant later elects to enforce the 
code.  After the extension, the city may enforce the code in the 
designated area to the same extent as if the property were 
situated within its corporate limits.  
     A city which, on June 3, 1977, had not adopted the code may 
not commence enforcement of the code within or outside of its 
jurisdiction until it has provided written notice to the 
commissioner, the county auditor, and the town clerk of each 
town in which it intends to enforce the code.  A public hearing 
on the proposed enforcement must be held not less than 30 days 
after the notice has been provided.  Enforcement of the code by 
the city commences on the first day of January in the year 
following the notice and hearing.  
     Municipalities may provide for the issuance of permits, 
inspection, and enforcement within their jurisdictions by means 
which are convenient, and lawful, including by means of 
contracts with other municipalities pursuant to section 471.59, 
and with qualified individuals.  In areas outside of the 
enforcement authority of a city, the fee charged for the 
issuance of permits and inspections for single family dwellings 
may not exceed the greater of $100 or .005 times the value of 
the structure, addition, or alteration.  The other 
municipalities or qualified individuals may be reimbursed by 
retention or remission of some or all of the building permit fee 
collected or by other means.  In areas of the state where 
inspection and enforcement is unavailable from qualified 
employees of municipalities, the commissioner shall train and 
designate individuals available to carry out inspection and 
enforcement on a fee basis.  
    Sec. 3.  Minnesota Statutes 1988, section 18.191, is 
amended to read: 
     18.191 [DESTRUCTION OF NOXIOUS WEEDS.] 
     Except as otherwise specifically provided in sections 
18.181 to 18.271, 18.281 to 18.311, and 18.321 to 18.322, it 
shall be the duty of every occupant of land or, if the land is 
unoccupied, the owner thereof, or an agent, or the public 
official in charge thereof, to cut down, otherwise destroy, or 
eradicate all noxious weeds as defined in section 18.171, 
subdivision 5, standing, being, or growing upon such land, in 
such manner and at such times as may be directed or ordered by 
the commissioner, the commissioner's authorized agents, the 
county agricultural inspector, or by a local weed inspector 
having jurisdiction.  
     Except as provided below, an owner of nonfederal lands 
underlying public waters or wetlands designated under article 7, 
section 105.391 13, is not required to control or eradicate 
purple loosestrife (Lythrum salicaria) below the ordinary high 
water level of the public water or wetland.  The commissioner of 
natural resources is responsible for control and eradication of 
purple loosestrife on public waters and wetlands designated 
under article 7, section 105.391 13, except those located upon 
lands owned in fee title or managed by the United States.  The 
officers, employees, agents, and contractors of the commissioner 
may enter upon public waters and wetlands designated 
under article 7, section 105.391 13, and may cross adjacent 
lands as necessary for the purpose of investigating purple 
loosestrife infestations, formulating methods of eradication, 
and implementing control and eradication of purple loosestrife.  
The responsibility of the commissioner to control and eradicate 
purple loosestrife on public waters and wetlands located on 
private lands and the authority to enter upon private lands ends 
ten days after receipt by the commissioner of a written 
statement from the landowner that the landowner assumes all 
responsibility for control and eradication of purple loosestrife 
under sections 18.171 to 18.315.  State officers, employees, 
agents, and contractors are not liable in a civil action for 
trespass committed in the discharge of their duties under this 
section and are not liable to anyone for damages, except for 
damages arising from gross negligence. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
18B.07, subdivision 6, is amended to read: 
    Subd. 6.  [USE OF PUBLIC WATERS FOR FILLING EQUIPMENT.] (a) 
A person may not fill pesticide application equipment directly 
from public or other waters of the state, as defined in article 
7, section 105.37 2, subdivision 14 15, unless the equipment 
contains proper and functioning anti-backsiphoning mechanisms.  
The person may not introduce pesticides into the application 
equipment until after filling the equipment from the public 
waters.  
    (b) This subdivision does not apply to permitted 
applications of aquatic pesticides to public waters. 
    Sec. 5.  Minnesota Statutes 1988, section 40A.13, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONSERVATION PRACTICES TO PREVENT SOIL 
LOSS REQUIRED.] An owner of agricultural land in an exclusive 
agricultural use zone shall manage the land with sound soil 
conservation practices that prevent excessive soil loss 
according to the model ordinance adopted by the commissioner.  
The model ordinance and article 6, sections 40.19 to 40.28 57 to 
68, and sections adopted under chapter 40 relating to soil loss 
apply to all land in an exclusive agricultural zone.  A sound 
soil conservation practice prevents excessive soil loss or 
reduces soil loss to the most practicable extent.  
     Sec. 6.  Minnesota Statutes 1988, section 41.65, 
subdivision 3, is amended to read:  
    Subd. 3.  [RESTRICTED AGRICULTURAL USE.] (a) Acquired 
property that has marginal land as defined in article 6, section 
40.42 72, subdivision 6, or wetlands must be restricted from 
agricultural use on the marginal land or wetlands.  
    (b) If the commissioner determines that all or a portion of 
acquired property should be taken out of agricultural use or 
particular agricultural uses should be restricted, the 
commissioner shall have the attorney general prepare an easement 
restricting the agricultural use and file the easement with the 
county recorder where the property is located. 
    Sec. 7.  [83A.05] [CHANGING AND GIVING NAMES TO WATER 
BODIES.] 
    Subdivision 1.  [APPLICABILITY] A name of a lake, river, 
stream, or other body of water may be given or changed under 
sections 7 to 9 except that a name which has existed for 40 
years may not be changed under the provisions of sections 7 to 
9.  [378.01] 
    Subd. 2.  [PETITION FOR NAME.] (a) 15 or more legal voters 
residing in a county where all or a part of a body of water is 
located may petition the county board of the county where the 
petitioners reside or the body of water is located to change the 
name of or give a name to a previously unnamed lake, river, 
stream, or other body of water located within the state.  
[378.01] 
    (b) The petition may include any number of lakes, rivers, 
streams, or other bodies of water to have names changed, or if 
unnamed to be given a name by the county board.  [378.02] 
    (c) The petition must describe: 
    (1) the location of the body of water; 
    (2) the name, if any, that the body of water has been 
referred to or known by, or if there is not a name, it must be 
stated that a known name does not exist; 
    (3) the name that the petitioners desire to be given to the 
body of water; and 
    (4) the reason for the change of name or for giving the 
designated name to a previously unnamed body of water.  [378.01] 
    (d) The petitioners must sign their names and state their 
place of residence.  [378.01] 
    (e) The petition must be filed with the auditor of the 
county where the petitioners reside or the body of water is 
located.  [378.02] 
    Sec. 8.  [83A.06] [HEARING ON PETITION.] 
    Subdivision 1.  [TIME AND LOCATION.] After receiving the 
petition to name a body of water, the auditor must present the 
petition to the county board.  The county board must, by order, 
set the time and location for a hearing on the petition to be 
held more than 30 days after the order is made.  The hearing may 
be held at any convenient place within the county as determined 
by the county board.  [378.03] 
    Subd. 2.  [WATER BODY IN MORE THAN ONE COUNTY.] (a) If the 
petition describes a body of water located within more than one 
county, the county boards of the several affected counties must 
act jointly and as one body and the majority of the joint body 
must determine the name of the water body under sections 7 to 9 
in the same manner as prescribed for the county board.  
    (b) For a water body located within more than one county, 
the county auditor with whom the petition is filed must forward 
by mail a certified copy of the petition to the auditor of each 
affected county who shall present the petition to the respective 
county boards, and the notice of hearing the petition determined 
by the joint body shall be published in each county as provided 
in subdivision 4.  
    (c) The auditor of the county where the petition was filed 
must make and file certified copies of the adopted resolution in 
the office of the county recorder of each affected county at the 
expense of the petitioners.  [378.04] 
    Subd. 3.  [PETITIONERS' BOND.] Before the notice of the 
hearing is given, the petitioners must give a bond to be 
approved by the county attorney of the county where the petition 
has been filed that is conditioned on the full payment of the 
reasonable expenses incurred by the county for the proceeding.  
The commissioner of natural resources is not required to give 
bond.  [378.06] 
    Subd. 4.  [NOTICE.] Notice of the hearing must be:  
    (1) published for at least three weeks in the newspaper 
designated by the county board as the official newspaper for the 
county; [378.02] 
    (2) served on the commissioner of natural resources; and 
[378.03] 
    (3) served personally on the chair of the town board of a 
town, on the president of a statutory city board of trustees, 
and on the mayor of a city that has a body of water in the 
petition within or adjoining the boundary of the political 
subdivision.  [378.03] 
    Subd. 5.  [STATEMENTS AT HEARING.] At the hearing, legal 
voters of the county and municipalities may appear, by attorney 
or in person, and file an answer to the petition, stating in 
plain concise language why the petition should not be granted in 
whole or in part, and in the answer may ask the county board to 
give to the body of water a different name than the name 
requested in the original petition.  [378.02] 
    Subd. 6.  [DETERMINATION.] At the hearing on the petition, 
the county board shall hear all parties desiring to be heard on 
the petition and make an order, by resolution, determining the 
name of the body of water described in the petition.  The name 
determined by the board at the hearing is the legal name of the 
body of water.  [378.04] 
    Sec. 9. [83A.07] [NAMES NOT TO BE DUPLICATED.] 
    Subdivision 1.  [DUPLICATE DISCOURAGED.] In determining the 
name of a body of water, the county board may not, if possible, 
duplicate names of existing bodies of water.  The county board 
shall select and approve a name as it determines is in the 
permanent, best interests of the affected county.  [378.05] 
    Subd. 2.  [DIRECTOR TO CHECK NAME DUPLICATION.] The auditor 
of the county where a petition is filed must mail a copy of the 
petition with a copy of the notice of hearing on the petition to 
the director of the division of waters of the department of 
natural resources.  The director must compare the names 
suggested in the petition with the names of other bodies of 
water within the state and report findings and recommendations 
back to the auditor before the date of the hearing.  [378.05] 
    Sec. 10.  Minnesota Statutes 1988, section 84.083, is 
amended by adding a subdivision to read:  
    Subd. 3.  [PURCHASING.] The director of the division of 
waters may purchase technical and scientific equipment needed 
for the functions and duties of the director's office.  [105.40 
s. 9] 
    Sec. 11.  Minnesota Statutes 1988, section 84.083, is 
amended by adding a subdivision to read: 
    Subd. 4.  [APPROPRIATIONS AVAILABLE.] Money appropriated to 
the commissioner of natural resources for the division of waters 
or its director, to conduct hydrologic studies, remains 
available until spent.  [105.40 s. 12] 
    Sec. 12.  Minnesota Statutes 1988, section 84.91, 
subdivision 4, is amended to read: 
     Subd. 4.  [EVIDENCE.] In a prosecution for a violation of 
subdivision 1, paragraph (a), the admission of evidence of the 
amount of alcohol or a controlled substance in the person's 
blood, breath, or urine, is governed by article 9, section 
361.12 18, subdivision 4. 
    Sec. 13.  Minnesota Statutes 1988, section 84.911, 
subdivision 5, is amended to read: 
    Subd. 5.  [CHEMICAL TESTS.] Chemical tests administered 
under this section are governed by article 9, section 361.121 
19, subdivisions 5, 6, and 7 8, 9, and 10. 
    Sec. 14.  Minnesota Statutes 1988, section 84.911, 
subdivision 6, is amended to read: 
    Subd. 6.  [JUDICIAL AND ADMINISTRATIVE REVIEW; 
ENFORCEMENT.] Judicial and administrative review of sanctions 
imposed under this section is governed by article 9, section 
361.121, subdivision 2a, 2b, and 2c 19, subdivisions 3, 4, and 5.
Payment and enforcement of the civil penalty imposed under this 
section is governed by article 9, section 361.121 19, 
subdivisions 8 and 9 11 and 12. 
    Sec. 15.  Minnesota Statutes 1989 Supplement, section 
84.95, subdivision 2, is amended to read: 
    Subd. 2.  [PURPOSES AND EXPENDITURES.] Money from the 
reinvest in Minnesot