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

  

                         Laws of Minnesota 1987 

                        CHAPTER 239-H.F.No. 1078 
           An act relating to natural resources; amending 
          drainage law definitions; prescribing payment of 
          attorney fees on certain drainage issues appealed by 
          the commissioner; prescribing general provisions for 
          petitions; amending petition requirements; allowing 
          drainage proceedings to be delayed; prescribing 
          conditions for assessments against property within a 
          municipality; prescribing extent of benefits and 
          damages; requiring a benefits and damages statement 
          and a property owner's report; providing drainage 
          liens to be recorded against tracts of property; 
          changing rates of interest to be paid during drainage 
          proceedings; amending definition of repair; 
          authorizing conditions for repair if design elevation 
          is different than original construction elevation; 
          providing easement for drainage authority to inspect 
          drainage system; requiring permanent grass strips; 
          apportioning repair costs; renumbering sections; 
          providing penalties; amending Minnesota Statutes 1986, 
          sections 105.40, subdivision 11; 106A.005, 
          subdivisions 2, 3, 4, 9, 10, 11, 12, 13, 14, 19, and 
          by adding subdivisions; 106A.011, subdivisions 3 and 
          4; 106A.015; 106A.021, by adding subdivisions; 
          106A.031; 106A.051; 106A.055; 106A.081, subdivisions 2 
          and 3; 106A.091, subdivision 4; 106A.095, subdivisions 
          1, 3, and 4; 106A.101, subdivisions 2 and 4; 106A.215, 
          subdivisions 4 and 5; 106A.221; 106A.225; 106A.231; 
          106A.235, subdivisions 1 and 2; 106A.241, subdivisions 
          1, 2, and 5; 106A.245; 106A.251; 106A.261, 
          subdivisions 1, 3, 4, 5, 6, and 7; 106A.265, 
          subdivision 1; 106A.271, subdivision 1; 106A.275; 
          106A.281; 106A.285, subdivisions 2, 4, 5, 6, 9, and 
          10; 106A.295; 106A.301; 106A.305, subdivision 1; 
          106A.311; 106A.315, subdivisions 1, 2, 5, 6, and by 
          adding subdivisions; 106A.321, subdivision 1, and by 
          adding a subdivision; 106A.325, subdivisions 2 and 3; 
          106A.335, subdivisions 1 and 3; 106A.341; 106A.345; 
          106A.351; 106A.401, subdivisions 2 and 6, and by 
          adding subdivisions; 106A.405; 106A.411, subdivisions 
          3 and 4; 106A.501, subdivisions 4, 6, and 7; 106A.505, 
          subdivisions 1, 2, 3, 7, and 8; 106A.511, subdivisions 
          1, 2, 3, and 5; 106A.515; 106A.525, subdivisions 2, 3, 
          and 4; 106A.541; 106A.555, subdivision 2; 106A.601; 
          106A.605; 106A.611, subdivisions 2, 3, 6, and 7; 
          106A.615, subdivisions 4 and 7; 106A.635, subdivisions 
          1 and 10; 106A.645, subdivision 7; 106A.651, 
          subdivision 1; 106A.655, subdivision 1; 106A.701, 
          subdivision 1, and by adding a subdivision; 106A.705; 
          106A.715, subdivision 6; 106A.731, subdivision 1; 
          106A.741, subdivision 5; 106A.811, subdivisions 2, 4, 
          and 5; 112.431, subdivision 2; 112.48, subdivision 1; 
          112.59; 112.60, subdivision 1; and 112.65, subdivision 
          1; proposing coding for new law in Minnesota Statutes, 
          chapter 106A; repealing Minnesota Statutes 1986, 
          sections 106A.005, subdivision 25; 106A.201; 106A.205; 
          106A.211; and 111.01 to 111.421.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 105.40, 
subdivision 11, is amended to read: 
    Subd. 11.  [RULES TO STANDARDIZE FORMS.] The director is 
authorized to formulate may adopt permanent rules so as to 
standardize the forms and sizes of maps, plats, drawings and 
specifications in public drainage proceedings and 
proceedings and undertakings pertaining relating to public 
waters of the state.  The director must require the permanent 
grass strips acquired under section 106A.021 to be shown on the 
maps and maintain an inventory of all permanent grass strips 
acquired by drainage authorities. 
    Sec. 2.  Minnesota Statutes 1986, section 106A.005, 
subdivision 2, is amended to read:  
    Subd. 2.  [AFFECTED.] "Affected" means benefited or damaged 
by a drainage system or project. 
    Sec. 3.  Minnesota Statutes 1986, section 106A.005, 
subdivision 3, is amended to read:  
    Subd. 3.  [AUDITOR.] "Auditor" means the auditor of the 
county where the petition for a drainage system project was 
properly filed. 
    Sec. 4.  Minnesota Statutes 1986, section 106A.005, 
subdivision 4, is amended to read:  
    Subd. 4.  [BOARD.] "Board" means the board of commissioners 
of the county where the drainage system or project is located. 
    Sec. 5.  Minnesota Statutes 1986, section 106A.005, 
subdivision 9, is amended to read:  
    Subd. 9.  [DRAINAGE AUTHORITY.] "Drainage authority" means 
the board or joint county drainage authority having jurisdiction 
over a drainage system or project. 
    Sec. 6.  Minnesota Statutes 1986, section 106A.005, 
subdivision 10, is amended to read:  
    Subd. 10.  [DRAINAGE LIEN.] "Drainage lien" means a 
recorded lien against recorded on property for the costs of 
drainage proceedings and construction costs and interest on the 
lien, as provided under this chapter.  
    Sec. 7.  Minnesota Statutes 1986, section 106A.005, is 
amended by adding a subdivision to read: 
    Subd. 10a.  [DRAINAGE PROJECT.] "Drainage project" means a 
new drainage system, an improvement of a drainage system, an 
improvement of an outlet, or a lateral.  
    Sec. 8.  Minnesota Statutes 1986, section 106A.005, 
subdivision 11, is amended to read:  
    Subd. 11.  [DRAINAGE SYSTEM.] "Drainage system" means a 
ditch and tile system of ditch or tile, or both, to drain 
property, including laterals, improvements, and improvements of 
outlets, that is proposed to, established by, or 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. 
    Sec. 9.  Minnesota Statutes 1986, section 106A.005, 
subdivision 12, is amended to read:  
    Subd. 12.  [ENGINEER.] "Engineer" means the county highway 
engineer of a county where affected property is located or a 
professional engineer registered under state law for a drainage 
project appointed by the drainage authority under section 
106A.241, subdivision 1. 
    Sec. 10.  Minnesota Statutes 1986, section 106A.005, 
subdivision 13, is amended to read:  
    Subd. 13.  [ESTABLISHED.] "Established" means the drainage 
authority has made the final order to construct the drainage 
system project. 
    Sec. 11.  Minnesota Statutes 1986, section 106A.005, 
subdivision 14, is amended to read:  
    Subd. 14.  [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. 
    Sec. 12.  Minnesota Statutes 1986, section 106A.005, is 
amended by adding a subdivision to read: 
    Subd. 16a.  [OWNER.] "Owner" means an owner of property or 
a buyer of property under a contract for deed. 
    Sec. 13.  Minnesota Statutes 1986, section 106A.005, is 
amended by adding a subdivision to read: 
    Subd. 16b.  [PASSES OVER.] "Passes over" means in reference 
to property that has a drainage project or system, the 40-acre 
tracts or government lots and property that is bordered by, 
touched by, or underneath the path of the proposed drainage 
project. 
    Sec. 14.  Minnesota Statutes 1986, section 106A.005, 
subdivision 19, is amended to read:  
    Subd. 19.  [PROCEEDING.] "Proceeding" means a procedure 
under this chapter for or related to drainage that begins with 
filing a petition and ends by dismissal or establishment of a 
drainage system project. 
    Sec. 15.  Minnesota Statutes 1986, section 106A.011, 
subdivision 3, is amended to read:  
    Subd. 3.  [PERMISSION OF COMMISSIONER FOR WORK IN PUBLIC 
WATERS; APPLICATION.] (a) The drainage authority must receive 
permission from the commissioner to:  
    (1) remove, construct, or alter a dam affecting public 
waters;  
    (2) establish, raise, or lower the level of public waters; 
or 
    (3) drain any portion of a public water.  
    (b) The petitioners for a proposed drainage system 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. 
    Sec. 16.  Minnesota Statutes 1986, section 106A.011, 
subdivision 4, is amended to read:  
    Subd. 4.  [FLOOD CONTROL.] The drainage authority may 
construct necessary dams, structures, and improvements and 
maintain them to impound and release flood water to prevent 
damage.  The dams, structures, and improvements may be 
constructed with or without a drainage system project.  For a 
water body or watercourse that is not public waters the drainage 
authority may: 
    (1) lower, or establish the height of water in the water 
body or watercourse to control flood waters; 
    (2) build structures and improvements to maintain a water 
body or watercourse for flood control or other public purposes; 
and 
    (3) construct dikes or dams in a water body to maintain 
water at the height designated by the drainage authority and to 
drain part of the water body.  
    Sec. 17.  Minnesota Statutes 1986, section 106A.015, is 
amended to read:  
    106A.015 [CONSIDERATIONS BEFORE DRAINAGE WORK IS DONE.] 
    Subdivision 1.  [ENVIRONMENTAL AND LAND USE CRITERIA.] 
Before establishing a drainage system project the drainage 
authority must consider: 
    (1) private and public benefits and costs of the proposed 
drainage system 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 develop use the waters including storage 
and retention of drainage waters; 
    (6) the effect on water quality of constructing the 
proposed drainage system project; 
    (7) fish and wildlife resources affected by the proposed 
drainage system 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 system 
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 of the proceeding must give 
proper consideration to conservation of soil, water, forests, 
wild animals, and related natural resources, and to other public 
interests affected, together with other material matters as 
provided by law in determining whether the project will be of 
public utility, benefit, or welfare.  
    Sec. 18.  Minnesota Statutes 1986, section 106A.021, is 
amended by adding a subdivision to read: 
    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 106A.705, 
subdivision 1a, 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.  
    Sec. 19.  Minnesota Statutes 1986, section 106A.021, is 
amended by adding a subdivision to read: 
    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.  
    Sec. 20.  Minnesota Statutes 1986, section 106A.031, is 
amended to read:  
    106A.031 [CONNECTION WITH DRAINS IN ADJOINING STATES.] 
    Subdivision 1.  [PROCEDURE.] If it is necessary to 
construct a drainage system 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 
system 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 system 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 system 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 system 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. 
    Sec. 21.  [106A.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.  
    Sec. 22.  Minnesota Statutes 1986, section 106A.051, is 
amended to read:  
    106A.051 [DEFECTIVE PROCEEDINGS.] 
    (a) A party may not take advantage of an error in a 
drainage proceeding or an informality, error, or defect 
appearing in the record of the proceeding or construction, 
unless the party complaining is directly affected.  The 
modification of the benefits or damages to any property, or the 
enjoining of collection of any assessment, does not affect any 
other property or the collection of any assessment on other 
property. 
    (b) If a drainage system 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.  
    Sec. 23.  Minnesota Statutes 1986, section 106A.055, is 
amended to read:  
    106A.055 [REIMBURSEMENT OF COST OF FORMER SURVEYS WHEN USED 
LATER.] 
    If after a proceeding has begun a survey has been made and 
a proceeding to establish a drainage system project has been 
dismissed or the drainage system project has not been 
established, and all or a part of the former survey is used by 
the engineer for a drainage proceeding in the same area, the 
amount saved in the subsequent proceedings must be paid to the 
proper parties according to this section.  If the parties who 
paid the expense of the former survey make a petition, the 
drainage authority shall:  
    (1) determine the amount of benefit that was derived by the 
subsequent proceedings from the former survey; 
    (2) order the amount of the benefit to be paid to the 
proper parties; and 
    (3) charge the amount paid as a cost of the subsequent 
drainage proceeding.  
    Sec. 24.  Minnesota Statutes 1986, section 106A.081, 
subdivision 2, is amended to read:  
    Subd. 2.  [OBSTRUCTION OR DAMAGE OF A DRAINAGE SYSTEM.] A 
person may not willfully obstruct or damage a drainage project 
or system. 
    Sec. 25.  Minnesota Statutes 1986, section 106A.081, 
subdivision 3, is amended to read:  
    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.  
    Sec. 26.  Minnesota Statutes 1986, section 106A.091, 
subdivision 4, is amended to read:  
    Subd. 4.  [APPEAL TRIAL.] (a) The issues in the appeal are 
entitled to a trial by a jury at the next term of in the 
district court after the appeal is filed that is held within of 
the county where the drainage proceeding was pending. 
    (b) If At the request of the appellant requests it, the 
trial must be held at the next term of the district court of the 
county where the affected property is located.  The 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. 
    Sec. 27.  Minnesota Statutes 1986, section 106A.095, 
subdivision 1, is amended to read:  
    Subdivision 1.  [NOTICE OF APPEAL.] A party may appeal an 
order made by the board that dismisses drainage proceedings or 
establishes or refuses to establish a drainage system 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. 
    Sec. 28.  Minnesota Statutes 1986, section 106A.095, 
subdivision 3, is amended to read:  
    Subd. 3.  [DETERMINATION OF BENEFITS AND DAMAGES AFTER 
COURT ORDER.] If the order establishing a drainage system 
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 system project is affirmed, appeals related to 
benefits and damages must then be tried. 
    Sec. 29.  Minnesota Statutes 1986, section 106A.095, 
subdivision 4, is amended to read:  
    Subd. 4.  [PROCEDURE IF APPEAL ORDER ESTABLISHES DRAINAGE 
SYSTEM PROJECT.] If an order refusing to establish a 
drainage system project is appealed, and the court, by order, 
establishes the drainage system 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.  
    Sec. 30.  [106A.097] [PAYMENT OF ATTORNEY FEES ON APPEAL.] 
    If the commissioner of natural resources is a party making 
an appeal under section 106A.091 or 106A.095 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.  
    Sec. 31.  Minnesota Statutes 1986, section 106A.101, 
subdivision 2, is amended to read:  
    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.  
    Sec. 32.  Minnesota Statutes 1986, section 106A.101, 
subdivision 4, is amended to read:  
    Subd. 4.  [ENGINEER'S DOCUMENTS.] All original plats, 
profiles, records, and field books made by the engineer during 
the proceedings or the construction of a drainage system 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 system project, whichever is earlier. 
    Sec. 33.  [106A.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 must be signed by all owners 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.  
    Sec. 34.  [106A.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. 
    Sec. 35.  Minnesota Statutes 1986, section 106A.215, 
subdivision 4, is amended to read:  
    Subd. 4.  [PETITION.] (a) To start an improvement 
proceeding, A petition must be signed by: 
    (1) at least 26 percent of the resident owners of the 
property affected by the proposed improvement; 
    (2) at least 26 percent of the resident owners of property 
that the proposed improvement passes over; 
    (3) the owners of at least 26 percent of the property area 
affected by the proposed improvement; or 
    (4) the owners of at least 26 percent of the property area 
that the proposed improvement passes over. 
    (b) The petition must be filed with the auditor or, for a 
drainage system in more than one county, with the auditor of the 
county having the largest area of property the improvement is 
located on. 
    (c) The provisions of section 106A.201, subdivision 3, 
regarding signatures of public officials apply to this 
subdivision. 
    (d) The petition must: 
    (1) designate the drainage system proposed to be improved 
by number or another description that identifies the drainage 
system; 
    (2) state that the drainage system has insufficient 
capacity or needs enlarging or extending to furnish sufficient 
capacity or a better outlet; 
    (3) describe the starting point, general course, and 
terminus of any extension; 
    (4) 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 
    (5) (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. 
    Sec. 36.  Minnesota Statutes 1986, section 106A.215, 
subdivision 5, is amended to read:  
    Subd. 5.  [SUBSEQUENT PROCEEDINGS.] When a petition and the 
bond required by section 106A.205 are filed, the auditor shall 
present the petition to the board at its next meeting or, for a 
joint county drainage system, to the joint county drainage 
authority within ten days after the petition is filed.  The 
drainage authority shall appoint an engineer to examine the 
drainage system and make an improvement report.  The improvement 
proceedings must proceed under this chapter as provided for the 
original proceedings for the establishment of a drainage 
system 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.  
    Sec. 37.  Minnesota Statutes 1986, section 106A.221, is 
amended to read:  
    106A.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 system 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 resident owners of adjoining overflowed property, or by the 
owners of at least 26 percent of the area of the overflowed 
property.  The petition must: 
    (1) describe the property that has been or is likely to be 
overflowed 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 the 
construction outlet improvement is not awarded.  
    (b) The petitioners, except for a petition made by the 
board, shall give the required bond required by section 106A.205.
    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 BOARD AND DISTRICT COURT 
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 system 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 system 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 appointed, the viewers shall 
determine and report the benefits to all property from the 
outlet improvement including property drained or to be drained 
by the existing or drainage system and proposed drainage system 
project.  
    Sec. 38.  Minnesota Statutes 1986, section 106A.225, is 
amended to read:  
    106A.225 [LATERALS.] 
    Subdivision 1.  [PETITION.] (a) Persons that own property 
in the vicinity of an existing drainage system may petition for 
a lateral that connects their property with the drainage 
system.  The petition must be signed by at least 26 percent of 
the resident owners of the property or by the owners of at least 
26 percent of the area of the property traversed by 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 traversed by 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 
106A.205 33, 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 new 
drainage system 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 public drainage system until 
express authority for the use of the existing drainage system as 
an outlet for the lateral has been obtained under section 
106A.401. 
    Sec. 39.  Minnesota Statutes 1986, section 106A.231, is 
amended to read:  
    106A.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 system 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 system 
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.  
    Sec. 40.  Minnesota Statutes 1986, section 106A.235, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DESIGNATION.] A petition for a proposed 
drainage system 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. 
    Sec. 41.  Minnesota Statutes 1986, section 106A.235, 
subdivision 2, is amended to read:  
    Subd. 2.  [JOINT COUNTY DRAINAGE AUTHORITY.] The board 
where a petition for a proposed joint county drainage system 
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.  
    Sec. 42.  [106A.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. 
    Sec. 43.  Minnesota Statutes 1986, section 106A.241, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPOINTMENT.] Within 30 days after filing 
the 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 system 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. 
    Sec. 44.  Minnesota Statutes 1986, section 106A.241, 
subdivision 2, is amended to read:  
    Subd. 2.  [OATH; BOND.] An appointed engineer must 
subscribe to an oath to faithfully perform the assigned duties 
in the best manner possible and file a bond with the auditor. 
Within ten days after being appointed, the drainage authority 
shall set an amount of at least $5,000 for the bond.  The bond 
must have adequate surety and be payable to the county where the 
petition is filed, or for a proposed joint county 
drainage system 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.  
    Sec. 45.  Minnesota Statutes 1986, section 106A.241, 
subdivision 5, is amended to read:  
    Subd. 5.  [CONSULTING ENGINEER.] After the engineer is 
appointed and before construction of the drainage system 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 
system project.  The drainage authority shall determine the 
compensation for the consulting engineer.  
    Sec. 46.  Minnesota Statutes 1986, section 106A.245, is 
amended to read:  
    106A.245 [PRELIMINARY SURVEY AND PRELIMINARY SURVEY 
REPORT.] 
    Subdivision 1.  [SURVEY.] The engineer shall proceed 
promptly to: 
    (1) examine the petition and order; 
    (2) make a preliminary survey of the area likely to be 
affected by the proposed drainage system project to enable the 
engineer to determine whether the proposed drainage system 
project is necessary and feasible with reference to the 
environmental and land use criteria in section 106A.015, 
subdivision 1;  
    (3) examine and gather information related to determining 
whether the proposed drainage system project substantially 
affects areas that are public waters; and 
    (4) if the proposed drainage system 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.  The preliminary survey must consider the impact of 
the proposed drainage system project on the environmental and 
land use criteria in section 106A.015, subdivision 1.  The 
drainage authority may have other areas surveyed after: 
    (1) giving notice by mail of a hearing to survey additional 
areas, to be held at least ten days after the notice is mailed, 
to the petitioners and persons liable on the petitioners' bond; 
    (2) holding the hearing; 
    (3) obtaining consent of the persons liable on the 
petitioners' bond; and 
    (4) ordering the additional area surveyed by the engineer.  
    Subd. 3.  [ADOPTION OF FEDERAL PROJECT.] The engineer may 
approve and include as a part of the report, a project of the 
United States relating to drainage or flood control that is 
within the proposed drainage system 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 system 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 system project in the petition is feasible and 
complies with the environmental and land use criteria in section 
106A.015, subdivision 1, the engineer shall include in the 
preliminary survey report a preliminary plan of the proposed 
system drainage project showing the proposed ditches, tile, 
laterals, and other improvements, the outlet of the 
system 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 system project; 
    (6) consideration of the drainage project under the 
environmental and land use criteria in section 106A.015, 
subdivision 1, of the proposed drainage system; and 
    (7) other information as ordered by the drainage authority. 
    Sec. 47.  Minnesota Statutes 1986, section 106A.251, is 
amended to read:  
    106A.251 [FILING PRELIMINARY SURVEY REPORT.] 
    The engineer shall file the completed preliminary survey 
report in duplicate with the auditor.  The auditor shall send 
one copy of the report to the director.  If the proposed 
drainage system project involves a joint county drainage project 
or system, a copy of the report must be filed with the auditor 
of each affected county.  
    Sec. 48.  Minnesota Statutes 1986, section 106A.261, 
subdivision 1, is amended to read:  
    Subdivision 1.  [NOTICE.] When the preliminary survey 
report is filed, the auditor shall promptly notify the drainage 
authority.  The drainage authority in consultation with the 
auditor shall set a time, by order, not more than 30 days after 
the date of the order, for a hearing on the preliminary survey 
report.  At least ten days before the hearing, the drainage 
authority after consulting with the auditor shall give notice by 
mail of the time and location of the hearing to the petitioners, 
owners of property, and political subdivisions likely to be 
affected by the proposed drainage system project in the 
preliminary survey report.  
    Sec. 49.  Minnesota Statutes 1986, section 106A.261, 
subdivision 3, is amended to read:  
    Subd. 3.  [SUFFICIENCY OF PETITION.] (a) The drainage 
authority shall first examine the petition and determine if it 
meets the legal requirements. 
    (b) If the petition does not meet the legal requirements of 
this chapter, the hearing shall be adjourned and until a 
specified date by which the petitioners must resubmit the 
petition.  The petition must be referred back to the 
petitioners.  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 at the adjourned 
hearing the petition is not resubmitted or does not meet the 
legal requirements, the proceedings must be dismissed. 
    Sec. 50.  Minnesota Statutes 1986, section 106A.261, 
subdivision 4, is amended to read:  
    Subd. 4.  [DISMISSAL.] (a) The drainage authority shall 
dismiss the proceedings if it determines that: 
    (1) the proposed drainage system 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 106A.015, subdivision 1, and 
the engineer has not reported a plan to make the proposed 
drainage system project feasible and acceptable; 
    (3) the proposed drainage system 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 system project must begin with a new 
petition.  
    Sec. 51.  Minnesota Statutes 1986, section 106A.261, 
subdivision 5, is amended to read:  
    Subd. 5.  [FINDINGS AND ORDER.] (a) The drainage authority 
shall state, by order, its findings and any changes that must be 
made in the proposed drainage system 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 system project outlined in the 
petition, or modified and recommended by the engineer, is 
feasible; 
    (2) there is necessity for the proposed drainage system 
project; 
    (3) the proposed drainage system project will be of public 
benefit and promote the public health, after considering the 
environmental and land use criteria in section 106A.015, 
subdivision 1; and 
    (4) the outlet is adequate. 
    (b) Changes may be stated by describing them in general 
terms or filing a map that outlines the changes in the proposed 
drainage system project with the order.  The order and 
accompanying documents must be filed with the auditor.  
    Sec. 52.  Minnesota Statutes 1986, section 106A.261, 
subdivision 6, is amended to read:  
    Subd. 6.  [OUTLET IS EXISTING DRAINAGE SYSTEM.] If the 
outlet is an existing drainage system, the drainage authority 
may determine that the outlet is adequate and obtain permission 
to use the existing drainage system as an outlet.  The drainage 
authority shall assign a number to the proposed drainage system 
project and proceed under section 106A.401 to act in behalf of 
the proposed drainage system project. 
    Sec. 53.  Minnesota Statutes 1986, section 106A.261, 
subdivision 7, is amended to read:  
    Subd. 7.  [EFFECT OF FINDINGS.] (a) For all further 
proceedings, the order modifies the petition and the order must 
be considered with the petition.  
    (b) The findings and order of the drainage authority at the 
preliminary hearing are conclusive only for the signatures and 
legal requirements of the petition, the nature and extent of the 
proposed plan, and the need for a detailed survey, and only for 
the persons or parties shown by the preliminary survey report as 
likely to be affected by the proposed drainage system project.  
All questions related to the practicability and necessity of the 
proposed drainage system project are subject to additional 
investigation and consideration at the final hearing.  
    Sec. 54.  Minnesota Statutes 1986, section 106A.265, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ORDER.] When the preliminary hearing order 
is filed with the auditor, the drainage authority shall order 
the engineer to make a detailed survey with plans and 
specifications for the proposed drainage system project and 
submit a detailed survey report to the drainage authority as 
soon as possible.  
    Sec. 55.  Minnesota Statutes 1986, section 106A.271, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SURVEY AND EXAMINATION.] When an order for 
a detailed survey is filed, the engineer shall proceed to survey 
the lines of the proposed drainage system project in the 
preliminary hearing order, and survey and examine affected 
property. 
    Sec. 56.  Minnesota Statutes 1986, section 106A.275, is 
amended to read:  
    106A.275 [ENGINEER'S VARIANCE FROM DRAINAGE AUTHORITY 
ORDER.] 
    (a) In planning a proposed drainage system 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 system 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. 
    Sec. 57.  Minnesota Statutes 1986, section 106A.281, is 
amended to read:  
    106A.281 [SOIL SURVEY.] 
    The engineer shall make a soil survey if:  (1) the drainage 
authority orders a soil survey; (2) the commissioner requests a 
soil survey; or (3) the engineer determines a soil survey is 
necessary.  The soil survey must show the nature and character 
of the soil in the proposed drainage 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.  
    Sec. 58.  Minnesota Statutes 1986, section 106A.285, 
subdivision 2, is amended to read:  
    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 system 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 106A.021. 
    Sec. 59.  Minnesota Statutes 1986, section 106A.285, 
subdivision 4, is amended to read:  
    Subd. 4.  [BRIDGE AND CULVERT PLANS.] Plans for private 
bridges and culverts to be constructed by and as a part of the 
proposed drainage system project and plans for other works to be 
constructed for the proposed drainage system 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 system project.  
Plans and estimates of the cost of highway bridges and culverts 
must be prepared for the viewers to determine benefits and 
damages.  
    Sec. 60.  Minnesota Statutes 1986, section 106A.285, 
subdivision 5, is amended to read:  
    Subd. 5.  [TABULAR STATEMENT OF EXCAVATION, CONSTRUCTION, 
AND COST.] A tabular statement must be prepared showing:  
    (1) the number of cubic yards of excavation, linear feet of 
tile, and average depth on each tile line; 
    (2) the bridges, culverts, and works to be constructed 
under the plans for the system 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 system project that includes supervision and 
other costs.  
    Sec. 61.  Minnesota Statutes 1986, section 106A.285, 
subdivision 6, is amended to read:  
    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 106A.021.  
    Sec. 62.  Minnesota Statutes 1986, section 106A.285, 
subdivision 9, is amended to read:  
    Subd. 9.  [RECOMMENDATION FOR DIVISION OF WORK.] If 
construction of the proposed drainage system 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 system project be 
contracted separately, or (3) the time and manner for the work 
to be completed.  
    Sec. 63.  Minnesota Statutes 1986, section 106A.285, 
subdivision 10, is amended to read:  
    Subd. 10.  [OTHER INFORMATION ON PRACTICABILITY AND 
NECESSITY OF DRAINAGE SYSTEM PROJECT.] Other data and 
information to inform the drainage authority of the 
practicability and necessity of the proposed drainage 
system project must be made available including a comprehensive 
examination and the recommendation by the engineer regarding the 
environmental and land use criteria in section 106A.015, 
subdivision 1. 
    Sec. 64.  Minnesota Statutes 1986, section 106A.295, is 
amended to read:  
    106A.295 [REVISION OF ENGINEER'S DETAILED SURVEY REPORT 
AFTER ACCEPTANCE.] 
    After the final acceptance of the proposed drainage system 
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. 
    Sec. 65.  Minnesota Statutes 1986, section 106A.301, is 
amended to read:  
    106A.301 [COMMISSIONER'S FINAL ADVISORY REPORT.] 
    (a) The commissioner shall examine the detailed survey 
report and within 30 days of receipt make a final advisory 
report to the drainage authority.  The final advisory report 
must state whether the commissioner:  
    (1) finds the detailed survey report is incomplete and not 
in accordance with the provisions of this chapter, specifying 
the incomplete or nonconforming provisions; 
    (2) approves the detailed survey report as an acceptable 
plan to drain the property affected; 
    (3) does not approve the plan and recommendations for 
changes; 
    (4) finds the proposed drainage system project is not of 
public benefit or utility under the environmental and land use 
criteria in section 106A.015, subdivision 1, specifying the 
facts and evidence supporting the findings; or 
    (5) finds a soil survey is needed, and, if it is, makes a 
request to the engineer to make a soil survey.  
    (b) The commissioner shall direct the final advisory report 
to the drainage authority and file it with the auditor.  
    Sec. 66.  Minnesota Statutes 1986, section 106A.305, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPOINTMENT.] When the order for a 
detailed survey is made, the drainage authority shall, by order, 
appoint viewers consisting of three disinterested resident 
property owners of the counties affected by the proposed 
drainage system residents of the state qualified to assess 
benefits and damages.  The drainage authority may establish 
qualifications for viewers. 
    Sec. 67.  Minnesota Statutes 1986, section 106A.311, is 
amended to read:  
    106A.311 [VIEWERS' DUTIES.] 
    The viewers, with or without the engineer, shall determine 
the benefits and damages to all property affected by the 
proposed drainage system project and make a viewers' report.  
    Sec. 68.  Minnesota Statutes 1986, section 106A.315, 
subdivision 1, is amended to read:  
    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 106A.015, subdivision 2 106A.025. 
    Sec. 69.  Minnesota Statutes 1986, section 106A.315, 
subdivision 2, is amended to read:  
    Subd. 2.  [GOVERNMENT PROPERTY.] The viewers shall report 
the benefits and damages to the state, counties, and 
municipalities from the proposed drainage system 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.  
    Sec. 70.  Minnesota Statutes 1986, section 106A.315, 
subdivision 5, is amended to read:  
    Subd. 5.  [EXTENT AND BASIS OF BENEFITS.] (a) The viewers 
shall determine the amount of benefits to all property benefited 
within the watershed, whether the property is benefited 
immediately by the construction of the proposed drainage 
system project or the proposed drainage system 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. 
    Sec. 71.  Minnesota Statutes 1986, section 106A.315, 
subdivision 6, is amended to read:  
    Subd. 6.  [BENEFITS FOR PROPOSED DRAINAGE SYSTEM PROJECT AS 
OUTLET.] (a) If the proposed drainage system 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 system 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 in for the existing drainage 
system proceeding.  
    (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.  
    Sec. 72.  Minnesota Statutes 1986, section 106A.315, is 
amended by adding a subdivision to read: 
    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.  
    Sec. 73.  Minnesota Statutes 1986, section 106A.315, is 
amended by adding a subdivision to read: 
    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 106A.021; 
    (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.  
    Sec. 74.  Minnesota Statutes 1986, section 106A.321, 
subdivision 1, is amended to read:  
    Subdivision 1.  [REQUIREMENTS.] (a) 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 meandered lakes public waters; 
    (5) the damage, if any, to riparian rights; and 
    (6) the damages paid for the permanent grass strip under 
section 106A.021; 
    (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 permit to work in 
public waters under section 105.42, 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. 
    Sec. 75.  Minnesota Statutes 1986, section 106A.321, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [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).  
    Sec. 76.  [106A.323] [PROPERTY OWNERS' REPORT AND FINAL 
PETITION NOTICE.] 
    Subdivision 1.  [REPORT TO PROPERTY OWNERS.] 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 permit to work in 
public waters under section 105.42, 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 106A.321, subdivision 1a, 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.  
    Sec. 77.  Minnesota Statutes 1986, section 106A.325, 
subdivision 2, is amended to read:  
    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 system 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 system project and the names and descriptions 
of affected property in the county. 
    Sec. 78.  Minnesota Statutes 1986, section 106A.325, 
subdivision 3, is amended to read:  
    Subd. 3.  [METHOD OF NOTICE.] The auditor shall notify the 
drainage authority, auditors of affected counties, and all 
interested persons of the time and location of the final hearing 
by publication, posting, and mail.  A printed copy of the final 
hearing notice for each affected county must be posted at least 
three weeks before the date of the final hearing at the front 
door of the courthouse in each county.  Within one week after 
the first publication of the notice, the auditor shall give 
notice by mail of the time and location of the final hearing to 
the commissioner, all property owners, and others affected by 
the proposed drainage system project and listed in the detailed 
survey report and the viewers' report.  
    Sec. 79.  Minnesota Statutes 1986, section 106A.335, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CONSIDERATION OF PETITION AND REPORTS.] At 
the time and location for the final hearing specified in the 
notice, or after the hearing adjourns, the drainage authority 
shall consider the petition for the drainage system 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.  
    Sec. 80.  Minnesota Statutes 1986, section 106A.335, 
subdivision 3, is amended to read:  
    Subd. 3.  [REEXAMINATION.] If the drainage authority 
determines that property not included in the notice should be 
included and assessed or that the engineer or viewers, or both, 
should reexamine the proposed drainage system 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. 
    Sec. 81.  Minnesota Statutes 1986, section 106A.341, is 
amended to read:  
    106A.341 [DRAINAGE AUTHORITY FINAL ORDER.] 
    Subdivision 1.  [DISMISSAL OF PROCEEDINGS.] The drainage 
authority must dismiss the proceedings and petition, by order, 
if it determines that:  
    (1) the benefits of the proposed drainage system project 
are less than the total cost, including damages awarded; 
    (2) the proposed drainage system project will not be of 
public benefit and utility; or 
    (3) the proposed drainage system project is not practicable 
after considering the environmental and land use criteria in 
section 106A.015, subdivision 1.  
    Subd. 2.  [ESTABLISHMENT OF PROPOSED DRAINAGE SYSTEM.] (a) 
The drainage authority shall establish, by order, a proposed 
drainage system 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 system project will be of public 
utility and benefit, and will promote the public health; and 
    (6) the proposed drainage system 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 system project as 
reported and amended.  
    Sec. 82.  Minnesota Statutes 1986, section 106A.345, is 
amended to read:  
    106A.345 [APPORTIONMENT OF COST FOR JOINT COUNTY DRAINAGE 
SYSTEMS.] 
    For joint county proceedings, the auditor where the 
petition is filed shall file a certified copy of the viewers' 
report with the auditor of each affected county within 20 days 
after the date of the final order establishing the system.  When 
the final order to establish the drainage system project is 
made, the drainage authority shall determine and order the 
percentage of the cost of the drainage system 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.  
    Sec. 83.  Minnesota Statutes 1986, section 106A.351, is 
amended to read:  
    106A.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 property 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.] The drainage authority 
shall hold a hearing on the report and confirm the benefits and 
benefited areas. (a) The redetermination of benefits and damages 
shall proceed as provided for viewers and the viewers' report in 
sections 106A.311 to 106A.321, and for.  
    (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 106A.325, 106A.335, and 106A.341, 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 106A.091. 
    Sec. 84.  Minnesota Statutes 1986, section 106A.401, 
subdivision 2, is amended to read:  
    Subd. 2.  [EXPRESS AUTHORITY NECESSARY.] After the 
construction of a drainage system 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 of the 
drainage system proposed to be used as the outlet.  This section 
is applicable to the construction of a public or private 
drainage system that outlets water into an established drainage 
system regardless of the actual physical connection. 
    Sec. 85.  Minnesota Statutes 1986, section 106A.401, 
subdivision 6, is amended to read:  
    Subd. 6.  [PAYMENT OF OUTLET FEE.] The outlet fee for a 
proposed drainage system project is a part of the cost of the 
proposed drainage system project and is to be paid by assessment 
against the property benefited by the proposed drainage system 
project, under section 106A.601, and credited to the established 
drainage system account. 
    Sec. 86.  Minnesota Statutes 1986, section 106A.401, is 
amended by adding a subdivision to read: 
    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 property during the period the 
unauthorized outlet was operational.  
    Sec. 87.  Minnesota Statutes 1986, section 106A.401, is 
amended by adding a subdivision to read: 
    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. 
    Sec. 88.  Minnesota Statutes 1986, section 106A.405, is 
amended to read:  
    106A.405 [OUTLETS IN ADJOINING STATES.] 
    In any drainage proceeding, at the hearing on the detailed 
survey report and viewers' report, if the drainage authority 
determines that a proper outlet for the drainage system does not 
exist, except through property in an adjoining state, the 
drainage authority may adjourn the hearing.  If the hearing is 
adjourned the drainage authority shall require the auditor or, 
for a joint county drainage system, the auditors of affected 
counties to procure an option to acquire the needed right-of-way 
at an expense not exceeding the estimated cost specified in the 
detailed survey report.  The order establishing the 
drainage system project may not be made until the option is 
procured.  If the option is procured and the drainage system 
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 system project.  
    Sec. 89.  Minnesota Statutes 1986, section 106A.411, 
subdivision 3, is amended to read:  
    Subd. 3.  [FILING; NOTICE.] (a) If proceedings to establish 
the drainage system 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. 
    Sec. 90.  Minnesota Statutes 1986, section 106A.411, 
subdivision 4, is amended to read:  
    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. 
    Sec. 91.  Minnesota Statutes 1986, section 106A.501, 
subdivision 4, is amended to read:  
    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 106A.015, subdivision 1.  
    Sec. 92.  Minnesota Statutes 1986, section 106A.501, 
subdivision 6, is amended to read:  
    Subd. 6.  [GUARANTY OF TILE WORK.] If tile is used to 
construct any part of the drainage system 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.  
    Sec. 93.  Minnesota Statutes 1986, section 106A.501, 
subdivision 7, is amended to read:  
    Subd. 7.  [MODIFICATION OF CONTRACT BY AGREEMENT.] This 
chapter does not prevent the persons with property affected by 
the construction of a drainage system 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 system project is 
constructed, if the modification is recommended, in writing, by 
the engineer and approved by the drainage authority.  
    Sec. 94.  Minnesota Statutes 1986, section 106A.505, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUDITORS AND DRAINAGE AUTHORITY TO 
PROCEED.] Thirty days after the order establishing a 
drainage system project is filed, the auditor and the drainage 
authority or, for a joint county drainage system project, a 
majority of the auditors of the affected counties shall proceed 
to award the contract to construct the drainage system project.  
    Sec. 95.  Minnesota Statutes 1986, section 106A.505, 
subdivision 2, is amended to read:  
    Subd. 2.  [PENDING APPEAL OF BENEFITS AND DAMAGES.] If an 
appeal regarding the determination of benefits and damages is 
made within 30 days after the order establishing the 
drainage system 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.
    Sec. 96.  Minnesota Statutes 1986, section 106A.505, 
subdivision 3, is amended to read:  
    Subd. 3.  [NOTICE OF CONTRACT AWARDING.] The auditor of an 
affected county shall give notice of the awarding of the 
contract by publication in a newspaper in the county.  The 
notice must state the time and location for awarding the 
contract.  For a joint county drainage system 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 paper.  The trade paper 
notice must state: 
    (1) the time and location for awarding the contract; 
    (2) the approximate amount of work and its estimated cost; 
    (3) that bids may be for the work as one job, or in 
sections, or separately, for bridges, ditches and open work, 
tile, or tile construction work, if required or advisable; 
    (4) that each bid must be accompanied by a certified check 
or a bond furnished by an approved surety corporation payable to 
the auditors of affected counties for ten percent of the bid, as 
security that the bidder will enter into a contract and give a 
bond as required by section 106A.501; and 
    (5) that the drainage authority reserves the right to 
reject any and all bids. 
    Sec. 97.  Minnesota Statutes 1986, section 106A.505, 
subdivision 7, is amended to read:  
    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 system project in the time 
and manner and according to the plans and specifications and the 
contract provisions in this chapter.  
    Sec. 98.  Minnesota Statutes 1986, section 106A.505, 
subdivision 8, is amended to read:  
    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.  
    Sec. 99.  Minnesota Statutes 1986, section 106A.511, 
subdivision 1, is amended to read:  
    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.  
    Sec. 100.  Minnesota Statutes 1986, section 106A.511, 
subdivision 2, is amended to read:  
    Subd. 2.  [PETITION AFTER COST ESTIMATE ERROR OR CHANGE TO 
LOWER COST.] A person interested in the drainage system project 
may petition the drainage authority if the person determines 
that the engineer made an error in the estimate of the 
drainage system 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 the 
efficiency.  The petition must state the person's determinations 
and request that the detailed survey report and viewers' report 
be referred back to the engineer and to the viewers for 
additional consideration. 
    Sec. 101.  Minnesota Statutes 1986, section 106A.511, 
subdivision 3, is amended to read:  
    Subd. 3.  [PETITION AFTER EXCESSIVE COST DUE TO INFLATION.] 
(a) A person interested in the drainage system 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.  
    Sec. 102.  Minnesota Statutes 1986, section 106A.511, 
subdivision 5, is amended to read:  
    Subd. 5.  [HEARING ON COST PETITION.] (a) At the hearing 
the drainage authority shall consider the petition and hear all 
interested parties. 
    (b) The drainage authority may, by order, authorize the 
engineer to amend the detailed survey report, if the drainage 
authority determines that: 
    (1) the detailed survey report cost estimate was erroneous 
and should be corrected;  
    (2) the plans and specifications could be changed in a 
manner materially affecting the cost of the drainage system 
project without interfering with the efficiency; and 
    (3) with the correction or modification a contract could be 
awarded within the 30 percent limitation and equal to or less 
than benefits. 
    (c) If the drainage authority determines that the amended 
changes affect the amount of benefits or damages to any property 
or that the benefits should be reexamined because of inflated 
land values or inflated construction costs, it shall refer the 
viewers' report to the viewers to reexamine the benefits and 
damages. 
    (d) The drainage authority may, by order, direct the 
engineer and viewers to amend their detailed survey report and 
viewers' report to consider the inflationary cost increases if 
the drainage authority determines that: 
    (1) bids were not received; or 
    (2) because of inflationary construction cost increases, 
construction under the awarded contract cannot be completed for 
30 percent or less over the detailed survey cost estimate or in 
excess of the benefits, less damages and other costs. 
    (e) The drainage authority may continue the hearing to give 
the engineer or viewers additional time to amend the reports. 
The jurisdiction of the drainage authority continues at the 
adjourned hearing.  
    (f) The drainage authority has full authority to consider 
the amended reports and make findings and orders.  A party may 
appeal to the district court under section 106A.091, subdivision 
1.  
    Sec. 103.  Minnesota Statutes 1986, section 106A.515, is 
amended to read:  
    106A.515 [DAMAGES, PAYMENT.] 
    The board of each county where the damaged property is 
located must order the awarded damages to be paid, less any 
assessment against the property, before the property is entered 
for construction of the drainage system 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.  
    Sec. 104.  Minnesota Statutes 1986, section 106A.525, 
subdivision 2, is amended to read:  
    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. 
    Sec. 105.  Minnesota Statutes 1986, section 106A.525, 
subdivision 3, is amended to read:  
    Subd. 3.  [NOTICE; CHANGING COST.] The auditor shall notify 
the state and each railroad company, corporation, or political 
subdivision that they are to construct a required bridge or 
culvert on a road or right-of-way under its jurisdiction, within 
a reasonable time in the notice.  If the work is not done within 
the prescribed time, the drainage authority may order the bridge 
or culvert constructed as part of the drainage system 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.  
    Sec. 106.  Minnesota Statutes 1986, section 106A.525, 
subdivision 4, is amended to read:  
    Subd. 4.  [CONSTRUCTION ON LINE BETWEEN TWO CITIES PAID 
EQUALLY.] The costs of constructing a bridge or culvert that is 
required by construction of a drainage system 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. 
    Sec. 107.  Minnesota Statutes 1986, section 106A.541, is 
amended to read:  
    106A.541 [EXTENSION OF TIME ON CONTRACTS.] 
    The auditors of affected counties may extend the time for 
the performance of a contract as provided in this section.  The 
contractor may apply, in writing, for an extension of the 
contract.  Notice of the application must be given to:  (1) the 
engineer and the attorney for the petitioners; and (2) for a 
joint county drainage system 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.  
    Sec. 108.  Minnesota Statutes 1986, section 106A.555, 
subdivision 2, is amended to read:  
    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. 
    Sec. 109.  Minnesota Statutes 1986, section 106A.601, is 
amended to read:  
    106A.601 [DRAINAGE LIEN STATEMENT.] 
    Subdivision 1.  [DETERMINATION OF PROPERTY LIABILITY.] When 
the contract for the construction of a drainage system project 
is awarded, the auditor of an affected county shall make a 
statement showing the total cost of the drainage system 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 system project.  The property liability must be shown 
in the tabular statement under subdivision 2, opposite the 
property owner's name and description of each tract of 
property.  The amount of liability on a tract of property for 
establishment and construction of a drainage system 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 system 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 system 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 into to the county treasury for the establishment 
and construction of the drainage system project.  
    Subd. 3.  [SUPPLEMENTAL DRAINAGE LIEN STATEMENT.] If any 
items of the cost of the drainage system 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 on allowance 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. 
    Sec. 110.  Minnesota Statutes 1986, section 106A.605, is 
amended to read:  
    106A.605 [EFFECT OF FILED DRAINAGE LIEN.] 
    The amount recorded on 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 easements 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.  
    Sec. 111.  Minnesota Statutes 1986, section 106A.611, 
subdivision 2, is amended to read:  
    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 seven percent per year from the date the drainage lien 
statement is recorded 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.  
    Sec. 112.  Minnesota Statutes 1986, section 106A.611, 
subdivision 3, is amended to read:  
    Subd. 3.  [COLLECTION OF PAYMENTS.] Interest and any 
installment due must be entered on the tax lists for the year. 
The installment and interest must be collected in the same 
manner as real estate taxes for that year by collecting one-half 
of the total of the installment and interest with and as a part 
of the real estate taxes on or before May 15 and one-half on or 
before October 15 of the next year.  
    Sec. 113.  Minnesota Statutes 1986, section 106A.611, 
subdivision 6, is amended to read:  
    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. 
    Sec. 114.  Minnesota Statutes 1986, section 106A.611, 
subdivision 7, is amended to read:  
    Subd. 7.  [COLLECTION AND ENFORCEMENT OF DRAINAGE LIENS.] 
The provisions of law that exist relating to the collection of 
real estate taxes are adopted to enforce payment of drainage 
liens.  If there is a default, a penalty may not be added to an 
installment of principal and interest, but each defaulted 
payment, principal, and interest draws interest from the date of 
default until paid at seven percent per year the rate determined 
by the state court administrator for judgments under section 
549.09. 
    Sec. 115.  Minnesota Statutes 1986, section 106A.615, 
subdivision 4, is amended to read:  
    Subd. 4.  [ASSESSMENT FOR VACATED TOWN ROADS.] If a town is 
assessed for benefits to a town road in a drainage system 
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.  
    Sec. 116.  Minnesota Statutes 1986, section 106A.615, 
subdivision 7, is amended to read:  
    Subd. 7.  [RAILROAD AND UTILITY PROPERTY.] Property owned 
by a railroad or other utility corporation benefited by a 
drainage system 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.  
    Sec. 117.  Minnesota Statutes 1986, section 106A.635, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORITY.] After the contract for the 
construction of a drainage system 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 system project.  
    Sec. 118.  Minnesota Statutes 1986, section 106A.635, 
subdivision 10, is amended to read:  
    Subd. 10.  [BOND RECITAL.] Each drainage bond, temporary 
drainage bond, and definitive drainage bond must contain a 
recital that it is issued by authority of and in strict 
accordance with this chapter.  The recital is conclusive in 
favor of the holders of the bonds as against the county, that 
the drainage system 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.
    Sec. 119.  Minnesota Statutes 1986, section 106A.645, 
subdivision 7, is amended to read:  
    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.  
    Sec. 120.  Minnesota Statutes 1986, section 106A.651, 
subdivision 1, is amended to read:  
    Subdivision 1.  [FUNDS FOR DRAINAGE SYSTEM COSTS.] The 
board shall provide funds to pay the costs of drainage projects 
and systems. 
    Sec. 121.  Minnesota Statutes 1986, section 106A.655, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PAYMENT MADE FROM DRAINAGE SYSTEM 
ACCOUNT.] The costs for a drainage system project proceeding and 
construction must be paid from the drainage system account by 
drawing on the account. 
    Sec. 122.  Minnesota Statutes 1986, section 106A.701, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITION.] The term "repair," as used in 
this section, means to restore all or a part of a drainage 
system as nearly as practicable to the same condition as when 
originally constructed or 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.  
    Sec. 123.  Minnesota Statutes 1986, section 106A.701, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [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.  
    Sec. 124.  Minnesota Statutes 1986, section 106A.705, is 
amended to read:  
    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 106A.021 and provide the 
repairs necessary to make the drainage system efficient.  The 
drainage authority shall have the drainage system inspected 
annually on a regular basis by an inspection committee of the 
drainage authority or a drainage inspector appointed by the 
drainage authority.  
    Subd. 1a.  [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 106A.021.  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 
106A.021, 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 106A.021; 
    (5) the measures that must be taken by the property owner 
to comply with section 106A.021 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 
106A.021 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 106A.021 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 106A.021.  
    Subd. 2.  [DRAINAGE INSPECTOR REPORT.] For each drainage 
system that the board designates and requires the drainage 
inspector to examine, the drainage inspector shall make a 
drainage inspection report in writing to the board after 
examining a drainage system, designating portions that need 
repair 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 106A.021.  
    Subd. 3.  [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.  
    Subd. 4.  [REPAIRS LESS THAN $20,000 $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 $20,000 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.  
    Subd. 5.  [ANNUAL REPAIR ASSESSMENT LEVY LIMITS.] The 
drainage authority may give notice of and hold a hearing on the 
repair levy before ordering the levy of an assessment for 
repairs.  In one calendar year the drainage authority may not 
levy an assessment for repairs or maintenance on one drainage 
system for more than 20 percent of the benefits of the drainage 
system, $1,000 per mile of open ditch in the ditch system, or 
$20,000 $50,000, whichever is greater, except for a repair made 
after a disaster under subdivision 6 or under the petition 
procedure.  
    Subd. 6.  [REPAIR AND CONSTRUCTION AFTER DISASTER.] The 
drainage authority may repair and reconstruct the drainage 
system without advertising for bids and without regard to 
the $20,000 $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.  
    Sec. 125.  Minnesota Statutes 1986, section 106A.715, 
subdivision 6, is amended to read:  
    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) that the resloping, leveling, and 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; and 
    (2) that 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 106A.315 and 106A.321 and.  The 
drainage authority shall hear and determine the damages and 
benefits as provided in sections 106A.325, 106A.335, and 
106A.341.  The hearing shall be held within 30 days after the 
property owners' report is mailed.  Damages must be paid as 
provided by section 106A.315 as a part of the cost of the 
repair, and benefits must be added to the benefits previously 
determined as the basis for the pro rata assessment for the 
repair of the drainage system for the repair proceeding only.  
    Sec. 126.  [106A.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 
106A.021.  
    (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.  
    Sec. 127.  Minnesota Statutes 1986, section 106A.731, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPORTIONMENT REPAIR COST OF ASSESSMENTS.] 
If there is not enough money in the drainage system account to 
make a repair, the board shall apportion and assess the costs of 
the repairs pro rata on all property and entities that have been 
assessed benefits for the drainage system. 
    Sec. 128.  Minnesota Statutes 1986, section 106A.741, 
subdivision 5, is amended to read:  
    Subd. 5.  [PROPERTY BENEFITED IN HEARING ORDER INCLUDED IN 
FUTURE PROCEEDINGS.] For the repair of the drainage system under 
this section that included the property that was not assessed 
and in all future proceedings relating to repairing, cleaning, 
improving, or altering the drainage system, the property 
benefited in the viewers' report hearing is part of the property 
benefited by the drainage system and must be assessed, in the 
same manner provided for the assessment of the property 
originally assessed for and included in the drainage system. 
    Sec. 129.  Minnesota Statutes 1986, section 106A.811, 
subdivision 2, is amended to read:  
    Subd. 2.  [PETITIONERS.] A petition must be signed by at 
least 51 percent of the resident property owners assessed for 
the construction of the drainage system or by the owners of not 
less than 51 percent of the area of the property assessed for 
the drainage system.  For the purpose of the petition, the 
county is the resident owner of all tax-forfeited property held 
by the state and assessed benefits for the drainage system, and 
the board may execute the petition for the county as a resident 
an owner.  
    Sec. 130.  Minnesota Statutes 1986, section 106A.811, 
subdivision 4, is amended to read:  
    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 of court.  If property assessed for benefits is in 
two or more counties, the petition must be filed with the 
auditor.  When the petition is filed, the drainage authority in 
consultation with the auditor, or the 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. 
    Sec. 131.  Minnesota Statutes 1986, section 106A.811, 
subdivision 5, is amended to read:  
    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 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) At When the adjourned 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.  
    Sec. 132.  Minnesota Statutes 1986, section 112.431, 
subdivision 2, is amended to read:  
    Subd. 2.  [DEFINITIONS.] (a) For the purpose of this 
section the terms defined in this subdivision have the meanings 
ascribed to them.  
    (b) "Drainage system" means a ditch as defined by has the 
meaning given in section 106A.005, subdivision 11.  
    (c) "Watershed district" means any watershed district 
established pursuant to the provisions of 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.  
    Sec. 133.  Minnesota Statutes 1986, section 112.48, 
subdivision 1, is amended to read:  
    Subdivision 1.  After the overall plan of the district has 
been prescribed by the board, as provided in section 112.46, a 
petition may be filed with the managers for any project within 
the district conforming in general with the plan.  The petition 
must be signed:  
    (1) by not less than 25 percent of the resident freeholders 
property owners, or by the owners of more than 25 percent of the 
land within the limits of the area proposed to be improved, 
unless the project consists of the establishment of a new 
drainage system as defined in sections 106A.005 to 106A.811 in 
chapter 106A or the improvement of an existing drainage system;  
    (2) by a majority of the resident owners of the land over 
which the proposed project passes or is located, or by the 
owners of at least 60 percent of the area of the land, if the 
project consists of the establishment of a new drainage system 
as defined in sections 106A.005 to 106A.811 in chapter 106A;  
    (3) by not less than 26 percent of the resident owners of 
the property affected by the proposed project or over which the 
proposed project passes or by the owners of not less than 26 
percent of the area affected or over which the proposed project 
passes if the project consists of the improvement of an existing 
drainage system as defined in sections 106A.005 to 106A.811 in 
chapter 106A;  
    (4) by a county board of any county affected; or 
    (5) by the governing body of any city lying wholly or 
partly within the area proposed to be improved; provided that if 
the proposed project affects lands exclusively within a city, 
the petition shall originate from the governing body of the city.
    For the purpose of this subdivision, holders of easements 
for electric or telephone transmission or distribution lines are 
not considered freeholders or owners.  
    The petition shall contain the following: 
    (a) a description of the proposed project, and the purpose 
to be accomplished; 
    (b) a description of the lands over which the proposed 
project passes or is located; 
    (c) a general description of the part of the district which 
will be affected, if less than the entire district; 
    (d) the need and necessity for the proposed improvement; 
    (e) that the proposed project will be conducive to public 
health, convenience, and welfare; 
    (f) a statement that the petitioners will pay all costs and 
expenses which may be incurred in case the proceedings are 
dismissed or for any reason no construction contract is let for 
the project. 
    Sec. 134.  Minnesota Statutes 1986, section 112.59, is 
amended to read:  
    112.59 [CONTROL OF CONTRACTS.] 
    In all cases where contracts are let by the managers, they 
shall have full control of all matters pertaining thereto.  If a 
contractor fails to complete the improvement within the time or 
in the manner specified in the contract, the managers may extend 
the time for completion or may refuse an extension of time or 
may cancel the contract and readvertise and relet the contract.  
They may require the surety for the contractor to complete the 
improvement or proceed to have the contract otherwise completed 
at the expense of the contractor and the surety.  They may take 
such other action with reference thereto that the occasion may 
require in the interest of the district.  The provisions of 
sections 106A.005 to 106A.811 chapter 106A, so far as pertinent, 
apply to and govern the relations between the engineer and the 
contractor, including the examination and report of the engineer 
and the amount and time of payment.  The managers shall keep an 
accurate account of all expenses incurred, which shall include 
the compensation of the engineer and the assistants, the 
compensation and expenses of the appraisers as provided in 
section 112.50, the compensation of petitioners' attorney, the 
cost of petitioners' bond, the fees of all county officials 
necessitated by the improvement which shall be in addition to 
all fees otherwise allowed by law, and the time and expenses of 
all employees of the district, including the expenses of the 
managers while engaged in any improvement.  The fees and 
expenses provided for herein shall be audited, allowed and paid 
upon the order of the managers and shall be charged to and be 
treated as a part of the cost of the improvement.  
    Sec. 135.  Minnesota Statutes 1986, section 112.60, 
subdivision 1, is amended to read:  
    Subdivision 1.  Upon the filing by the managers with the 
auditor of any county of a statement listing the property and 
corporations benefited or damaged or otherwise affected by any 
improvement as found by the appraisers and approved by the 
managers, the auditor shall assess the amount specified in such 
list against the lands and municipalities or other corporations 
as therein specified in accordance with the pertinent provisions 
of sections 106A.005 to 106A.811 chapter 106A. 
    Sec. 136.  Minnesota Statutes 1986, section 112.65, 
subdivision 1, is amended to read:  
    Subdivision 1.  The managers of a district shall take over 
when directed by the district court or county board or joint 
county drainage authority any judicial or county or joint county 
drainage system within the district, together with the right to 
repair and maintain the same.  Such transfer may be initiated by 
the district court joint county drainage authority or county 
board, or such transfer may be initiated by a petition from any 
person having an interest in the drainage system or by the 
managers.  No such transfer shall be made until the district 
court joint county drainage authority or county board has held a 
hearing thereon.  Due notice of the proposed transfer together 
with the time and place of hearing shall be given by two weeks 
published notice in a legal newspaper of general circulation in 
the area involved.  All interested persons may appear and be 
heard.  Following the hearing, the district court joint county 
drainage authority or county board shall make its order 
directing that the managers of a district take over the affected 
judicial joint county or county drainage system, unless it 
appears that the take over takeover would not be in the public 
welfare or public interest and would not serve the purpose of 
this chapter.  When the transfer is directed all proceedings for 
repair and maintenance shall thereafter conform to the 
provisions of sections 106A.005 to 106A.811 chapter 106A.  
    Sec. 137.  [FEDERAL 404 PERMITTING AUTHORITY REPORT.] 
    The commissioner of natural resources shall, in cooperation 
with the Minnesota department of agriculture, the Minnesota 
pollution control agency, Minnesota association of watershed 
district managers, and the association of Minnesota counties, 
prepare a report relating to state assumption of the federal 
permitting program under United States Code, title 33, section 
1344.  The report must include: 
    (1) analyses of what types of activities and resources 
would be involved; 
    (2) environmental protection agency and United States Army 
Corps of Engineers' conditions for state permitting; 
    (3) analyses of the costs for state administration and 
alternative funding strategies; 
    (4) recommendations on the appropriate roles for state 
agencies and local government in administration of the program; 
and 
    (5) the necessary changes in current legislation to 
facilitate administration of the program. 
    The commissioner of natural resources must submit the 
report to the legislature and governor by October 1, 1988. 
    Sec. 138.  [RENUMBERING SECTIONS.] 
    The revisor of statutes shall renumber each section of 
Minnesota Statutes specified in column A with the numbers set 
forth in column B.  The revisor shall also make necessary 
cross-reference changes consistent with the renumbering. 
                 Column A           Column B 
                  111.65             110.55 
                  111.66             110.56 
                  111.67             110.57 
                  111.68             110.58 
                  111.69             110.59 
                  111.70             110.60 
                  111.71             110.61 
                  111.72             110.62 
                  111.73             110.63 
                  111.74             110.64 
                  111.75             110.65 
                  111.76             110.66 
                  111.77             110.67 
                  111.78             110.68 
                  111.79             110.69 
                  111.80             110.70 
                  111.81             378.36 
                  111.82             105.82 
    Sec. 139. [REPEALER.] 
    Minnesota Statutes 1986, sections 106A.005, subdivision 25; 
106A.201; 106A.205; 106A.211; 111.01; 111.02; 111.03; 111.04; 
111.05; 111.06; 111.07; 111.08; 111.09; 111.10; 111.11; 111.12; 
111.13; 111.14; 111.15; 111.16; 111.17; 111.18; 111.19; 111.20; 
111.21; 111.22; 111.23; 111.24; 111.25; 111.26; 111.27; 111.28; 
111.29; 111.30; 111.31; 111.32; 111.33; 111.34; 111.35; 111.36; 
111.37;  111.38; 111.39; 111.40; 111.41; 111.42; and 111.421; 
are repealed. 
    Sec. 140.  [EFFECTIVE DATE.] 
    This act is effective August 1, 1987, for all drainage 
proceedings started after that date, except section 139 is 
effective and drainage and conservancy districts established 
under sections 111.01 to 111.421 are terminated on January 1, 
1988, but actions started under sections 111.01 to 111.421 
before January 1, 1988, may be completed under the provisions of 
sections 111.01 to 111.421. 
    Approved May 26, 1987

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