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

CHAPTER 298--S.F.No. 364

An act

relating to waters; modifying drainage system provisions;

amending Minnesota Statutes 2008, sections 103B.101, by adding a subdivision; 103E.065; 103E.227; 103E.401, subdivision 3; 103E.505, subdivision 3; 103E.611, subdivision 1; 103E.735, subdivision 1; 103E.805; proposing coding for new law in Minnesota Statutes, chapter 103E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 103B.101, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Drainage stakeholder coordination. new text end

new text begin The Board of Water and Soil Resources shall work with drainage stakeholders to foster mutual understanding and provide recommendations for drainage system management and related water management, including recommendations for updating the drainage law in chapter 103E and other related provisions. The board may convene informal working groups or work teams to develop information, education, and recommendations. new text end

Sec. 2.

Minnesota Statutes 2008, section 103E.065, is amended to read:

103E.065 DRAINAGE INSPECTORS.

In counties deleted text begin where constructeddeleted text end new text begin or watershed districts having new text end drainage systems deleted text begin have an aggregate cost of more than $50,000deleted text end new text begin constructed in accordance with this chapternew text end , the deleted text begin boarddeleted text end new text begin drainage authority new text end shall appoint a competent person as deleted text begin countydeleted text end drainage inspector. The inspector may be the county highway engineer. The inspector shall examine the drainage systems designated by the deleted text begin boarddeleted text end new text begin drainage authoritynew text end . The deleted text begin boarddeleted text end new text begin drainage authoritynew text end shall specify the appointment period and compensation.

Sec. 3.

Minnesota Statutes 2008, section 103E.227, is amended to read:

103E.227 IMPOUNDINGnew text begin , REROUTING,new text end AND DIVERSION OF DRAINAGE SYSTEM WATERS.

Subdivision 1.

Petition.

(a) To conserve and make more adequate use of our water resources, a person, public or municipal corporation, governmental subdivision, the state or a department or agency of the state, the commissioner of natural resources, and the United States or any of its agencies, may petition deleted text begin for the installation of dams or other control works in drainage ditch systemsdeleted text end to impoundnew text begin , reroute,new text end or divert new text begin drainage system new text end waters for beneficial use. deleted text begin The petition must be directed to the drainage authority where the drainage system is located.deleted text end

new text begin (b) If the drainage system is under the jurisdiction of a county drainage authority, the petition must be filed with the auditor of the county. If the drainage system is under the jurisdiction of a joint county drainage authority, the petition must be filed with the county having the largest area of property in the drainage system, where the primary drainage system records are kept, and a copy of the petition must be submitted to the auditor of each of the other counties participating in the joint county drainage authority. If the system is under the jurisdiction of a watershed district, the petition must be filed with the secretary of the district. The auditor of an affected county or the secretary of a watershed district must make a copy of the petition available to the public. new text end

deleted text begin (b)deleted text end new text begin (c) new text end The petition must contain the location of the installation, new text begin concept new text end plansdeleted text begin , and specificationsdeleted text end for the proposed deleted text begin structuredeleted text end new text begin project, new text end and a map deleted text begin ofdeleted text end new text begin that identifies new text end the areas likely to be affected by the deleted text begin impoundment or diversiondeleted text end new text begin projectnew text end .

deleted text begin (c)deleted text end new text begin (d) new text end The deleted text begin petitionerdeleted text end new text begin petition new text end shall deleted text begin agree to be responsible for the cost of installation and construction of the structuredeleted text end new text begin identify the sources of funds to be used to secure the necessary land rights and to construct the project and the amount and rationale for any drainage system funds requestednew text end .

deleted text begin (d)deleted text end new text begin (e) new text end The deleted text begin petitiondeleted text end new text begin petitioner or drainage authority new text end must also deleted text begin be accompanied bydeleted text end new text begin acquire new text end a public waters work permit or a water use permit from the commissioner of natural resources if required under chapter 103G.

Subd. 2.

Bond.

(a) Upon filing the petition, the petitioners shall file a bond as provided in section 103E.202.

(b) A bond is not required if the petition is filed by the state, a state agency or department, the commissioner of natural resources, the United States or any of its agencies, new text begin a soil and water conservation district, a watershed district, new text end or a municipality.

Subd. 3.

Procedure to establish project.

(a) After receiving the petitiondeleted text begin ,deleted text end new text begin and new text end bond, deleted text begin and permit,deleted text end if required, the drainage authority must appoint an engineer to investigate the effect of the proposed installation and file a report of findings.

(b) After filing of the engineer's report, notice must be given and a public hearing held as provided in section 103E.261.

(c) If deleted text begin fromdeleted text end new text begin at new text end the hearing it appears from the engineer's report and other evidence presented that the deleted text begin installationdeleted text end new text begin project new text end will be of a public or private benefit and that it will not impair the utility of the deleted text begin ditchdeleted text end new text begin drainage system new text end or deprive affected land owners of its benefit, the drainage authority shall make an order modifying the drainage systemnew text begin , to include the amount, if any, of drainage system funds approved for the project at the discretion of the drainage authority, new text end and issue deleted text begin a permitdeleted text end new text begin an order new text end authorizing deleted text begin its installationdeleted text end new text begin the projectnew text end .

Subd. 4.

new text begin Permits and new text end flowage easements required.

Before installing or constructing deleted text begin an impoundment or diversiondeleted text end new text begin the projectnew text end , the petitioner new text begin or drainage authority new text end shall obtain new text begin all required permits and all necessary new text end rights-of-way and flowage easements from owners of land to be affected by it.

Subd. 5.

deleted text begin Assessment ofdeleted text end new text begin Construction, operation, new text end maintenancenew text begin ,new text end and repair deleted text begin costsdeleted text end new text begin responsibilitiesnew text end .

The order of the drainage authority modifying the drainage system must deleted text begin provide that construction and laterdeleted text end new text begin identify the parties responsible for construction, operation, and new text end maintenance deleted text begin and repairsdeleted text end of the drainage system modification and deleted text begin installation must be done by the petitioner without assessment of the cost to the property owners previously within the drainage systemdeleted text end new text begin the amount, if any, of drainage system funds for the projectnew text end .new text begin If the part of the drainage system located within the project boundaries is in need of repairs, the petitioner's engineer shall estimate the cost at the time of petition of these separable repairs. The drainage authority shall consider the separable repair costs that will be avoided as a result of the petitioned project, as well as any other benefits of the project to the drainage system, when determining whether or how much to contribute to the petitioned project.new text end

Sec. 4.

Minnesota Statutes 2008, section 103E.401, subdivision 3, is amended to read:

Subd. 3.

Petition.

A person seeking authority to use an established drainage system as an outlet must petition the drainage authority. When the petition is filed, the drainage authority in consultation with the auditor shall set a time and location for a hearing on the petition and shall give notice by mail and notice by publication of the hearing. The auditor must be paid deleted text begin a fee of $5 plus 30 cents for each notice mailed in excess of tendeleted text end new text begin the actual costs for the hearing notices by the petitionernew text end .

Sec. 5.

Minnesota Statutes 2008, section 103E.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 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 deleted text begin $3,000deleted text end new text begin $25,000new text end , the auditor must also place a notice in a drainage construction trade newspaper. The trade newspaper notice must state:

(1) the time and location for awarding the contract;

(2) the approximate amount of work and its estimated cost;

(3) that bids may be for the work as one job, or in sections, or separately, for bridges, ditches and open work, tile, or tile construction work, if required or advisable;

(4) that each bid must be accompanied by a certified check or a bond furnished by an approved surety corporation payable to the auditors of affected counties for ten percent of the bid, as security that the bidder will enter into a contract and give a bond as required by section 103E.501; and

(5) that the drainage authority reserves the right to reject any and all bids.

Sec. 6.

Minnesota Statutes 2008, section 103E.611, subdivision 1, is amended to read:

Subdivision 1.

Payment of drainage lien principal.

(a) Drainage liens against property benefited under this chapter are payable to the treasurer of the county in 20 or less equal annual installments. The first installment of the principal is due on or before November 1 after the drainage lien statement is recorded, and each subsequent installment is due on or before November 1 of each year afterwards until the principal is paid.

(b) The drainage authority may, by order, direct the drainage lien to be paid by 1/15 of the principal on or before five years from November 1 after the lien statement is recorded, and 1/15 on or before November 1 of each year afterwards until the principal is paid.

(c) The drainage authority may order that the drainage lien must be paid by one or two installments, notwithstanding paragraphs (a) and (b), if the principal amount of a lien against a lot or tract of property or against a county or municipality is less than deleted text begin $50deleted text end new text begin $500new text end .

Sec. 7.

Minnesota Statutes 2008, section 103E.735, subdivision 1, is amended to read:

Subdivision 1.

Authority and limits of fund.

To create a repair fund for a drainage system to be used only for repairs, the drainage authority may apportion and assess an amount against all property and entities assessed for benefits in proceedings for establishment of the drainage system, including property not originally assessed and subsequently found to be benefited according to law. The fund may not exceed 20 percent of the assessed benefits of the drainage system or deleted text begin $40,000deleted text end new text begin $100,000new text end , whichever is greater. If the account in a fund for a drainage system exceeds the larger of 20 percent of the assessed benefits of the drainage system or deleted text begin $40,000deleted text end new text begin $100,000new text end , assessments for the fund may not be made until the account is less than the larger of 20 percent of the assessed benefits or deleted text begin $40,000deleted text end new text begin $100,000new text end . Assessments must be made pro rata according to the determined benefits. Assessments may be made payable, by order, in equal annual installments. The auditor shall file a tabular statement as provided in section 103E.731, subdivision 4, with the county recorder. Assessments must be collected as provided in section 103E.731.

Sec. 8.

Minnesota Statutes 2008, section 103E.805, is amended to read:

103E.805 REMOVAL OF PROPERTY FROM deleted text begin AND PARTIAL ABANDONMENT OFdeleted text end A DRAINAGE SYSTEM.

Subdivision 1.

Petition.

After deleted text begin thedeleted text end construction of a drainage system, deleted text begin thedeleted text end new text begin annew text end owner of benefited property may petition the drainage authority to remove property from the drainage system deleted text begin or abandon any part of the drainage system that is not of public benefit and utility and does not serve a substantial useful purpose to property remaining in the system if:deleted text end new text begin .new text end

deleted text begin (1) waters are diverted from property assessed for benefits so that the drainage from the property does not use or affect the drainage system; or deleted text end

deleted text begin (2) a dam authorized by law is constructed in the drainage system so that the property above the dam cannot use or receive benefits from the drainage system. deleted text end

Subd. 2.

Filing.

If the drainage system is under the jurisdiction of a new text begin county new text end drainage authority, the petition must be filed with the auditornew text begin of the countynew text end . new text begin If the drainage system is under the jurisdiction of a joint county drainage authority, the petition must be filed with the county having the largest area of property in the drainage system, where the primary drainage system records are kept. new text end If the system is under the jurisdiction of a watershed district, the petition must be filed with the secretary of the district.

Subd. 3.

Hearing.

(a) When the petition is filed, the drainage authority in consultation with the auditor or the secretary shall set a time and location for a hearing on the deleted text begin partial abandonmentdeleted text end petition and shall give notice deleted text begin by publicationdeleted text end of the hearing deleted text begin to all persons interested in the drainage systemdeleted text end new text begin by mail to the owners of all property benefited by the drainage system, and either in a newspaper of general circulation within the affected drainage area or by publication on a Web site of the drainage authoritynew text end .

(b) At the hearing, the drainage authority shall make findings and shall direct, by order, that the petitioners' property be removed from the drainage system if the drainage authority determines:

(1) that the waters from the petitioners' property have been diverted from the drainage system, or that deleted text begin a dam has been lawfully constructed anddeleted text end the property cannot new text begin significantly or regularly new text end use the drainage system;

(2) that the property is not benefited by the drainage system deleted text begin and does not use or affect the drainage systemdeleted text end ; and

(3) that removing the property from the drainage system will not prejudice the property owners and property remaining in the system.

deleted text begin (c) The drainage authority shall make findings and direct, by order, that part of the drainage system be abandoned if the drainage authority determines that part of the drainage system does not serve a substantial useful purpose to any property remaining in the system and is not of a substantial public benefit and utility. deleted text end

Subd. 4.

Effect of removing property from drainage system.

The property that has been removed from the drainage system is not affected by the drainage system at any later proceeding for the repair or improvement of the drainage system and a drainage lien or assessment for repairs or improvements may not be made against the property that has been removed on or after the date of the order.

Subd. 5.

Liens and assessments on property removed deleted text begin or abandoneddeleted text end new text begin from a drainage systemnew text end .

An order under this section does not release the property from a drainage lien filed on account of the drainage system before the date of the order. An order under this section does not release the property from any assessment or a drainage lien filed on or after the date of the order for costs incurred on account of the drainage system before the date of the order.

Sec. 9.

new text begin [103E.806] PARTIAL ABANDONMENT OF A DRAINAGE SYSTEM. new text end

new text begin Subdivision 1. new text end

new text begin Petition. new text end

new text begin After construction of a drainage system, an owner of benefited property may petition the drainage authority to abandon any part of the drainage system that is not of public benefit and utility and does not serve a substantial useful purpose to property remaining in the system. new text end

new text begin Subd. 2. new text end

new text begin Filing. new text end

new text begin If the drainage system is under the jurisdiction of a county drainage authority, the petition must be filed with the auditor of the county. If the drainage system is under the jurisdiction of a joint county drainage authority, the petition must be filed with the county having the largest area of property in the drainage system, where the primary drainage system records are kept. If the system is under the jurisdiction of a watershed district, the petition must be filed with the secretary of the district. new text end

new text begin Subd. 3. new text end

new text begin Hearing. new text end

new text begin (a) When the petition is filed, the drainage authority, in consultation with the auditor or the secretary, shall set a time and location for a hearing on the petition and shall give notice of the hearing by mail to the owners of all property benefited by the drainage system, and either in a newspaper of general circulation within the affected drainage area or by publication on a Web site of the drainage authority. new text end

new text begin (b) At the hearing, the drainage authority shall make findings and direct, by order, that part of the drainage system be abandoned, if the drainage authority determines that part of the drainage system does not serve a substantial useful purpose as part of the drainage system to any property remaining in the system and is not of a substantial public benefit and utility. new text end

new text begin Subd. 4. new text end

new text begin Effect of partial abandonment. new text end

new text begin After partial abandonment of a drainage system, a repair petition may not be accepted for the abandoned part of the drainage system and the responsibility of the drainage authority for that part of the drainage system ends. new text end

new text begin Subd. 5. new text end

new text begin Liens and assessments on property involved in partial abandonment. new text end

new text begin An order under this section does not release the property from a drainage lien filed on account of the drainage system before the date of the order. An order under this section does not release the property from any assessment or a drainage lien filed on or after the date of the order for costs incurred on account of the drainage system before the date of the order. new text end

Presented to the governor May 6, 2010

Signed by the governor May 10, 2010, 2:04 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes