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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 199-H.F.No. 1055 
                  An act relating to waters; eliminating the position of 
                  board of water and soil resources secretary; 
                  increasing board members' compensation; duties of 
                  advisory committees; rule approval procedure; 
                  guidelines for management plans; exemptions from 
                  review; appeals from rules, permit decisions, and 
                  orders; informal dispute resolution; assessment basis; 
                  benefits or damages to state-owned land; property 
                  acquisition procedures; water resource studies and 
                  programs; eminent domain procedure; amending Minnesota 
                  Statutes 1994, sections 103D.101, subdivision 4; 
                  103D.205, subdivisions 1 and 4; 103D.221, subdivision 
                  2; 103D.255, subdivision 1; 103D.261, subdivision 1; 
                  103D.271, subdivisions 2 and 4; 103D.305, subdivision 
                  1; 103D.311, subdivision 4; 103D.315, subdivisions 1, 
                  8, and 11; 103D.321, subdivision 2; 103D.331; 
                  103D.335, subdivisions 5, 6, 11, 13, and by adding a 
                  subdivision; 103D.341, subdivision 2; 103D.351; 
                  103D.401, subdivisions 1 and 2; 103D.405, subdivision 
                  1; 103D.515, subdivision 4; 103D.531; 103D.535, 
                  subdivisions 1, 4, and 5; 103D.537; 103D.611, 
                  subdivisions 1, 4, and 5; 103D.621, subdivision 4; 
                  103D.625, subdivisions 3 and 4; 103D.631, subdivision 
                  2; 103D.635, subdivisions 1 and 3; 103D.705, 
                  subdivision 1; 103D.711, subdivision 2; 103D.715, 
                  subdivisions 3 and 4; 103D.721, subdivisions 2 and 3; 
                  103D.741, subdivision 1; 103D.745, subdivisions 2 and 
                  3; 103D.811, subdivisions 1 and 3; 103D.901, 
                  subdivisions 2, 4, and 5; 103D.905, subdivisions 3 and 
                  5; 103D.921, subdivisions 1 and 3; 103D.925; and 
                  117.011; proposing coding for new law in Minnesota 
                  Statutes, chapter 103D. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 103D.101, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RECORDS.] The board must keep a record of all 
        proceedings before it and maintain the record on file the record 
        with the secretary of the board.  Copies of the record may be 
        obtained on terms and conditions prescribed by the board.  
           Sec. 2.  Minnesota Statutes 1994, section 103D.205, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FILING.] To establish a watershed 
        district, an establishment petition must be filed with the 
        secretary of the board.  
           Sec. 3.  Minnesota Statutes 1994, section 103D.205, 
        subdivision 4, is amended to read: 
           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.  
           Sec. 4.  Minnesota Statutes 1994, section 103D.221, 
        subdivision 2, is amended to read: 
           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 need for the proposed 
        district, and the purpose of the proposed watershed district's 
        contemplated improvements, if any; 
           (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.  
           Sec. 5.  Minnesota Statutes 1994, section 103D.255, 
        subdivision 1, is amended to read: 
           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.  
           Sec. 6.  Minnesota Statutes 1994, section 103D.261, 
        subdivision 1, is amended to read: 
           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.  
           Sec. 7.  Minnesota Statutes 1994, section 103D.271, 
        subdivision 2, is amended to read: 
           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.  
           Sec. 8.  Minnesota Statutes 1994, section 103D.271, 
        subdivision 4, is amended to read: 
           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.  
           Sec. 9.  Minnesota Statutes 1994, section 103D.305, 
        subdivision 1, is amended to read: 
           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.  
           Sec. 10.  Minnesota Statutes 1994, section 103D.311, 
        subdivision 4, is amended to read: 
           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.  
           Sec. 11.  Minnesota Statutes 1994, section 103D.315, 
        subdivision 1, is amended to read: 
           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.  
           Sec. 12.  Minnesota Statutes 1994, section 103D.315, 
        subdivision 8, is amended to read: 
           Subd. 8.  [COMPENSATION.] The compensation of managers for 
        meetings and for performance of other necessary duties may not 
        exceed $50 $55 a day.  Managers are entitled to reimbursement 
        for traveling and other necessary expenses incurred in the 
        performance of official duties.  
           Sec. 13.  Minnesota Statutes 1994, section 103D.315, 
        subdivision 11, is amended to read: 
           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 Bylaws 
        adopted under this subdivision are not subject to section 
        103D.341.  
           Sec. 14.  Minnesota Statutes 1994, section 103D.321, 
        subdivision 2, is amended to read: 
           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.  
           Sec. 15.  Minnesota Statutes 1994, section 103D.331, is 
        amended to read: 
           103D.331 [ADVISORY COMMITTEE.] 
           Subdivision 1.  [PURPOSE.] The managers must annually 
        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.  
           Subd. 1a.  [DUTIES.] For purposes of carrying out its 
        duties under this section the advisory committee shall:  
           (1) elect a chair from its membership; 
           (2) elect a recorder from its membership; 
           (3) establish a meeting schedule, which at a minimum meets 
        annually; 
           (4) consider issues pertinent to the functions and purposes 
        of the watershed district; 
           (5) review and comment on reports, minutes, activities, and 
        proposed projects of the managers; and 
           (6) report to the managers the general content of advisory 
        committee meetings and resulting recommendations.  
           Subd. 2.  [MEMBERS.] (a) The advisory committee consists of 
        at least five members.  If practicable, the advisory committee 
        members selected must should include a supervisor of 
        a representative from each soil and water conservation district, 
        a member of a representative of each 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, except representatives from soil and 
        water conservation districts and counties, 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.  
           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.  
           Sec. 16.  Minnesota Statutes 1994, section 103D.335, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DATA ACQUISITION.] The managers may: 
           (1) make necessary surveys or use other reliable surveys 
        and data and develop projects and programs to acquire data to 
        accomplish the purposes for which the watershed district is 
        organized; and 
           (2) establish and maintain devices for acquiring and 
        recording hydrological and water quality data.  
           Sec. 17.  Minnesota Statutes 1994, section 103D.335, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PROJECTS NOT REQUIRING A PETITION.] The managers 
        may initiate, undertake, and construct implement projects not 
        required to be instituted by a petition under section 103D.701.  
           Sec. 18.  Minnesota Statutes 1994, section 103D.335, 
        subdivision 11, is amended to read: 
           Subd. 11.  [ACQUISITION OF PROPERTY.] The managers may 
        acquire by gift, purchase, taking under the procedures of this 
        chapter, or by 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. 
           Sec. 19.  Minnesota Statutes 1994, section 103D.335, 
        subdivision 13, is amended to read: 
           Subd. 13.  [CONSTRUCTION OR IMPLEMENTATION CONTRACTS.] The 
        managers may enter into contracts of construction or 
        implementation authorized by this chapter. 
           Sec. 20.  Minnesota Statutes 1994, section 103D.335, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [WATER RESOURCE MANAGEMENT ACTIVITIES.] The 
        managers may conduct studies and monitoring of water resources 
        within the watershed district and implement water resource 
        management programs. 
           Sec. 21.  Minnesota Statutes 1994, section 103D.341, 
        subdivision 2, is amended to read: 
           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) Prior to adoption, the proposed rule or amendment to 
        the rule must be submitted to the board for review and comment.  
        The board's review shall be considered advisory.  The board 
        shall have 45 days from receipt of the proposed rule or 
        amendment to the rule to provide its comments in writing to the 
        watershed district.  
           (c) 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 and the board. 
           (c) (d) The managers must mail a copy of the rules to the 
        governing body of each municipality affected by the watershed 
        district.  
           Sec. 22.  Minnesota Statutes 1994, section 103D.351, is 
        amended to read: 
           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.  
           Sec. 23.  Minnesota Statutes 1994, section 103D.401, 
        subdivision 1, is amended to read: 
           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.  The watershed management plan must 
        also conform closely with watershed management plan guidelines 
        as adopted and amended from time to time by the board of water 
        and soil resources.  
           (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.  
           Sec. 24.  Minnesota Statutes 1994, section 103D.401, 
        subdivision 2, is amended to read: 
           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.  
           Sec. 25.  Minnesota Statutes 1994, section 103D.405, 
        subdivision 1, is amended to read: 
           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.  The revised 
        watershed management plan of the district must conform closely 
        with adopted watershed management plan guidelines of the board 
        of water and soil resources.  
           (b) The managers must consider inclusion of at least 
        include 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 and programs to be completed 
        considered for implementation; 
           (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.  
           Sec. 26.  Minnesota Statutes 1994, section 103D.515, 
        subdivision 4, is amended to read: 
           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.  
           Sec. 27.  Minnesota Statutes 1994, section 103D.531, is 
        amended to read: 
           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.  
           Sec. 28.  Minnesota Statutes 1994, section 103D.535, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WHAT CAN BE APPEALED.] (a) Any party alone 
        or jointly may appeal to the district court or to the board an 
        order of the managers made in a proceeding relating to a project 
        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 in the proceeding that affects a substantial 
        right; or 
           (5) an order of the managers authorizing or refusing to 
        establish a project in whole or in part. 
           (b) Actions of the managers that do not relate to projects, 
        including actions related to permits and actions to enforce 
        watershed district rules, are not reviewable under this section. 
           (c) Projects initiated and financed by watershed districts, 
        wholly within the metropolitan area, under a state-approved and 
        locally adopted surface water management plan under section 
        103B.201 are not reviewable under this section.  
           Sec. 29.  Minnesota Statutes 1994, section 103D.535, 
        subdivision 4, is amended to read: 
           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.  
           Sec. 30.  Minnesota Statutes 1994, section 103D.535, 
        subdivision 5, is amended to read: 
           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.  
           Sec. 31.  Minnesota Statutes 1994, section 103D.537, is 
        amended to read: 
           103D.537 [APPEALS OF RULES, PERMIT DECISIONS, AND ORDERS 
        NOT INVOLVING PROJECTS.] 
           (a) Except as provided in section 103D.535, an interested 
        party may appeal a rule, permit decision, or order made by the 
        managers by a declaratory judgment action brought under chapter 
        555 or by appeal to the board.  An interested party may appeal a 
        rule made by the managers by a declaratory judgment action 
        brought under chapter 555 or by appeal to the board.  The 
        decision on appeal must be based on the record made in the 
        proceeding before the managers.  An appeal of a permit 
        decision or order must be filed within 30 days of the managers' 
        decision. 
           (b) By January 1, 1993 1997, the board shall adopt rules 
        governing appeals to the board under paragraph (a).  A decision 
        of the board on appeal is subject to judicial review under 
        sections 14.63 to 14.69. 
           Sec. 32.  [103D.539] [INFORMAL RESOLUTION OF DISPUTES.] 
           An interested party may request a meeting with the dispute 
        resolution committee of the board of water and soil resources to 
        informally resolve a dispute before initiating a declaratory 
        judgment action or an appeal under sections 103D.535 and 
        103D.537.  
           Sec. 33.  Minnesota Statutes 1994, section 103D.611, 
        subdivision 1, is amended to read: 
           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 or 
        implementation 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.  
           Sec. 34.  Minnesota Statutes 1994, section 103D.611, 
        subdivision 4, is amended to read: 
           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 or 
        implementation 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.  
           Sec. 35.  Minnesota Statutes 1994, section 103D.611, 
        subdivision 5, is amended to read: 
           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 or implementation 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 or implementation 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.  
           Sec. 36.  Minnesota Statutes 1994, section 103D.621, 
        subdivision 4, is amended to read: 
           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 notwithstanding any provision of chapter 103E.  
           Sec. 37.  Minnesota Statutes 1994, section 103D.625, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PROCEDURE FOR REPAIR OR IMPROVEMENT.] After the 
        transfer is ordered, all proceedings for repair and maintenance 
        must conform to chapter 103E, except for repairs and maintenance 
        done pursuant to section 103D.621, subdivision 4.  
           Sec. 38.  Minnesota Statutes 1994, section 103D.625, 
        subdivision 4, is amended to read: 
           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, except for repairs and 
        maintenance done pursuant to section 103D.621, subdivision 4.  
           Sec. 39.  Minnesota Statutes 1994, section 103D.631, 
        subdivision 2, is amended to read: 
           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.  
           (b) The managers may assess all the parcels of property and 
        municipal corporations previously assessed for benefits in 
        proceedings for the construction or implementation 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 or implementation 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 section 103E.731.  
           (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.  
           Sec. 40.  Minnesota Statutes 1994, section 103D.635, 
        subdivision 1, is amended to read: 
           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 or 
        implementation.  
           Sec. 41.  Minnesota Statutes 1994, section 103D.635, 
        subdivision 3, is amended to read: 
           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 or implementation 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 sections 103E.601 to 103E.631.  
           Sec. 42.  Minnesota Statutes 1994, section 103D.705, 
        subdivision 1, is amended to read: 
           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 or implementation contract is not awarded for 
        the proposed project.  
           Sec. 43.  Minnesota Statutes 1994, section 103D.711, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIREMENTS.] (a) The engineer's report must 
        include findings and recommendations about the proposed 
        project.  If the engineer finds the improvement project 
        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 project area to be improved, drawn to 
        scale, showing the location of the proposed improvements, if 
        any; 
           (2) the estimated total cost of completing the project 
        including construction, operation, implementation, 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, if required to implement the project; 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, if the project 
        is related to drainage; 
           (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.  
           Sec. 44.  Minnesota Statutes 1994, section 103D.715, 
        subdivision 3, is amended to read: 
           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, implementation, or maintenance.  
           Sec. 45.  Minnesota Statutes 1994, section 103D.715, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BENEFITS AND DAMAGES TO STATE LAND.] For all 
        watershed district projects, benefits and damages to property 
        owned by the state or a state agency, held and used for the 
        purposes described in sections 103E.025 and 103E.315, 
        subdivision 1, must be determined as using the procedure 
        provided in sections 103E.025 and 103E.315, subdivision 1, as 
        they are applicable.  If a state permit is required from the 
        commissioner to construct the project, state land may not be 
        taken, damaged, or benefited until the permit is issued. 
           Sec. 46.  Minnesota Statutes 1994, section 103D.721, 
        subdivision 2, is amended to read: 
           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, implementation, or maintenance.  
           Sec. 47.  Minnesota Statutes 1994, section 103D.721, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STATE PROPERTY.] For all watershed district 
        projects, benefits and damages to property owned by the state or 
        a state agency that is held and used for the purposes described 
        in sections 103E.025 and 103E.315, subdivision 1, shall be 
        determined as using the procedure provided in sections 103E.025 
        and 103E.315, subdivision 1, as they are applicable.  If a state 
        permit is required from the commissioner to construct the 
        project, state land may not be taken, damaged, or benefited 
        until the permit is issued. 
           Sec. 48.  Minnesota Statutes 1994, section 103D.741, 
        subdivision 1, is amended to read: 
           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 or implementation of the project.  
           Sec. 49.  Minnesota Statutes 1994, section 103D.745, 
        subdivision 2, is amended to read: 
           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 or implementation 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.  
           Sec. 50.  Minnesota Statutes 1994, section 103D.745, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ESTABLISHMENT OF PROJECT.] (a) The managers 
        shall make findings, order and direct construction or 
        implementation 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 or implementation and damages.  
           (b) The order may authorize the construction or 
        implementation 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.  
           Sec. 51.  Minnesota Statutes 1994, section 103D.811, 
        subdivision 1, is amended to read: 
           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 or implementation 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 or 
        implementation of the project.  The contract may be awarded in 
        sections or as a whole, as directed by the managers.  
           Sec. 52.  Minnesota Statutes 1994, section 103D.811, 
        subdivision 3, is amended to read: 
           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 or implementation.  
           (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.  
           Sec. 53.  Minnesota Statutes 1994, section 103D.901, 
        subdivision 2, is amended to read: 
           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 section 103E.635.  If an 
        improvement is to be constructed under section 103D.611, the 
        provisions of section 103E.635 requiring the county board to 
        award a contract for construction or implementation before 
        issuing bonds is not applicable to bonds issued to provide the 
        funds required to be furnished by this section.  
           Sec. 54.  Minnesota Statutes 1994, section 103D.901, 
        subdivision 4, is amended to read: 
           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 or implementation of the project or subsequently 
        determined on appeal. 
           (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.
           Sec. 55.  Minnesota Statutes 1994, section 103D.901, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DAMAGES PAID BEFORE ENTERING PROPERTY.] Before 
        entering property for which damages were awarded to begin 
        construction or implementation 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.  
           Sec. 56.  Minnesota Statutes 1994, section 103D.905, 
        subdivision 3, is amended to read: 
           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 or 
        implementation 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 103D.911.  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.  
           Sec. 57.  Minnesota Statutes 1994, section 103D.905, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CONSTRUCTION OR IMPLEMENTATION FUND.] (a) A 
        construction or implementation fund consists of:  
           (1) the proceeds of the sale of county bonds; 
           (2) construction or implementation loans from any agency of 
        the federal government; and 
           (3) special assessments to be levied to supply funds for 
        the construction or implementation 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 or implementation. 
           (b) Construction or implementation loans from an agency of 
        the federal government may be repaid from money collected by 
        special assessments on properties benefited by the project.  
           Sec. 58.  Minnesota Statutes 1994, section 103D.921, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PETITION.] (a) If a petition has been 
        filed with the managers for the construction or implementation 
        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.  
           Sec. 59.  Minnesota Statutes 1994, section 103D.921, 
        subdivision 3, is amended to read: 
           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 or implementation of the proposed 
        project.  If construction or implementation of the project is 
        authorized by the managers, the money advanced from the 
        preliminary fund shall be repaid from assessments for the 
        project.  
           Sec. 60.  Minnesota Statutes 1994, section 103D.925, is 
        amended to read: 
           103D.925 [WARRANTS.] 
           The managers may issue warrants of the watershed district 
        to pay contracts for the construction or implementation 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. 
           Sec. 61.  Minnesota Statutes 1994, section 117.011, is 
        amended to read: 
           117.011 [RIGHT OF EMINENT DOMAIN.] 
           All bodies, public or private, who have the right of 
        eminent domain, when exercising the right, shall do so in the 
        manner prescribed by this chapter, even though a different 
        procedure may be provided by charter provisions, ordinance or 
        statute, but nothing herein shall apply to the taking of 
        property under laws relating to drainage or to town roads when 
        those laws themselves expressly provide for the taking and 
        specifically prescribe the procedure.  The taking of property 
        for a project undertaken by a watershed district under chapter 
        103D or for a project undertaken by a drainage authority under 
        chapter 103E may be carried out under the procedure provided by 
        those chapters. 
           Presented to the governor May 22, 1995 
           Signed by the governor May 22, 1995, 7:25 p.m.