1.1                          A bill for an act 
  1.2             relating to drainage; allowing transfer of a public 
  1.3             drainage system to a water management authority; 
  1.4             defining water management authority; amending 
  1.5             Minnesota Statutes 2000, section 103E.005, by adding a 
  1.6             subdivision; proposing coding for new law in Minnesota 
  1.7             Statutes, chapter 103E. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 103E.005, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 29.  [WATER MANAGEMENT AUTHORITY.] "Water management 
  1.12  authority" means a county or municipality, watershed district, 
  1.13  watershed management organization, storm water management 
  1.14  district, lake improvement district, subordinate service 
  1.15  district, joint powers organization or other special district 
  1.16  organized and formed according to law for the purpose of 
  1.17  managing storm, surface, and flood waters, or with the authority 
  1.18  to manage storm, surface, and flood waters. 
  1.19     Sec. 2.  [103E.812] [TRANSFER OF ALL OR PART OF DRAINAGE 
  1.20  SYSTEM.] 
  1.21     Subdivision 1.  [DRAINAGE LIEN PAYMENT PERIOD MUST EXPIRE.] 
  1.22  After the period originally fixed or subsequently extended to 
  1.23  pay the assessment of the drainage lien expires, all or part of 
  1.24  a drainage system may be transferred from the jurisdiction of 
  1.25  the drainage authority to a water management authority as 
  1.26  provided in this section. 
  2.1      Subd. 2.  [PETITIONERS.] (a) For drainage systems outside 
  2.2   of the seven-county metropolitan area, and outside of the 
  2.3   municipal boundaries of a city, a petition must be signed by at 
  2.4   least 51 percent of the owners of property assessed for the 
  2.5   construction of the drainage system, or portion of the drainage 
  2.6   system proposed to be transferred, or by the owners of not less 
  2.7   than 51 percent of the area of the property assessed for the 
  2.8   drainage system, or portion of the drainage system sought to be 
  2.9   transferred.  The water management authority to which the 
  2.10  drainage system is to be transferred must join the petition. 
  2.11     (b) For drainage systems wholly or partially within the 
  2.12  municipal boundaries of a city, the city may petition for 
  2.13  transfer if the drainage system or portion of the drainage 
  2.14  system proposed to be transferred lies within the boundaries of 
  2.15  the city.  The water management authority to which the drainage 
  2.16  system is to be transferred must join the petition. 
  2.17     (c) For drainage systems within the seven-county 
  2.18  metropolitan area and within the jurisdictional boundaries of an 
  2.19  existing water management authority, the water management 
  2.20  authority may petition for transfer if the drainage system or 
  2.21  portion of the drainage system proposed to be transferred lies 
  2.22  within the boundaries of the water management authority. 
  2.23     (d) For the purpose of the petition, the county is the 
  2.24  resident owner of all tax-forfeited property held by the state 
  2.25  and assessed benefits for the drainage system, and the board may 
  2.26  execute the petition for the county as an owner. 
  2.27     Subd. 3.  [PETITION.] (a) The petition must designate the 
  2.28  drainage system, or portion thereof, proposed to be transferred 
  2.29  and show that the transfer is necessary for the orderly 
  2.30  management of storm, surface, or flood waters, including 
  2.31  management for water quality purposes. 
  2.32     (b) The petition must indicate the impact, if any, that the 
  2.33  transfer will have on properties utilizing the drainage system 
  2.34  for an outlet or otherwise benefiting from the existence of the 
  2.35  drainage system. 
  2.36     (d) The petition must include an engineering report, 
  3.1   prepared by the transferee water management authority, 
  3.2   establishing, for the record, the nature and extent of the 
  3.3   drainage easement occupied by the drainage system, and the 
  3.4   as-constructed, or subsequently improved, depth, grade, and 
  3.5   hydraulic capacity of the drainage system. 
  3.6      Subd. 4.  [FILING PETITION; JURISDICTION.] (a) If the 
  3.7   drainage system is administered by a county or joint county 
  3.8   drainage authority and if all property assessed for benefits in 
  3.9   the drainage system is in one county, the petition must be filed 
  3.10  with the auditor unless the petition is signed by the board, in 
  3.11  which case the petition must be made to the district court of 
  3.12  the county where the drainage system is located and filed with 
  3.13  the court administrator.  If the board, sitting as drainage 
  3.14  authority, is also the petitioning water management authority, 
  3.15  the petition must be made to the district court of the county 
  3.16  where the drainage system is located and filed with the court 
  3.17  administrator.  If property assessed for benefits is in two or 
  3.18  more counties, the petition must be filed with the auditor or 
  3.19  court administrator of either (1) the county where the portion 
  3.20  of the drainage system sought to be transferred exists; (2) the 
  3.21  county not petitioning for the transfer; or (3) the county where 
  3.22  the majority of the drainage system sought to be transferred 
  3.23  exists. 
  3.24     (b) If the drainage system is administered by a watershed 
  3.25  district drainage authority, the petition must be filed with the 
  3.26  secretary of the watershed district board of managers.  If the 
  3.27  watershed district is also the petitioning water management 
  3.28  authority, the petition must be filed with the court 
  3.29  administrator consistent with the criteria in paragraph (a), 
  3.30  clauses (1) to (3). 
  3.31     (c) When the petition is filed, the drainage authority in 
  3.32  consultation with the auditor or secretary, or the court 
  3.33  administrator with the approval of the court, shall set a time 
  3.34  and location for a hearing on the petition.  The auditor, 
  3.35  secretary, or court administrator shall give notice by mail and 
  3.36  publication of the time and location of the transfer hearing to 
  4.1   all persons interested.  The drainage authority or the district 
  4.2   </u>
  4.3   court where the petition is properly filed has jurisdiction of 
  4.4   the petition. 
  4.5      Subd. 5.  [TRANSFER HEARING.] (a) At the hearing, the 
  4.6   drainage authority or court shall examine the petition and 
  4.7   determine whether it is sufficient and shall hear all interested 
  4.8   parties.  
  4.9      (b) If a property owner assessed benefits for the drainage 
  4.10  system appears and makes a written objection to the transfer of 
  4.11  the drainage system, the drainage authority or court shall 
  4.12  appoint a technical panel to examine the drainage system, the 
  4.13  property, and the proposed transfer and report to the drainage 
  4.14  authority or court.  The hearing must be adjourned to make the 
  4.15  examination and report and a date must be set to reconvene.  The 
  4.16  technical panel shall consist, at a minimum, of a representative 
  4.17  of the drainage authority, a representative of the commissioner, 
  4.18  a representative of the board of water and soil resources, and a 
  4.19  viewer.  The technical panel, if appointed, shall proceed to 
  4.20  examine the drainage system, the property, and the proposed 
  4.21  transfer in light of the objections of the owner and report as 
  4.22  soon as possible to the drainage authority or court with the 
  4.23  merits of the objections.  The technical panel shall also 
  4.24  determine the extent to which the transfer of the drainage 
  4.25  system will damage or take property.  Nongovernment employee 
  4.26  members of the technical panel must be compensated in the same 
  4.27  manner as viewers as provided in this chapter. 
  4.28     (c) The board of water and soil resources and the 
  4.29  commissioner, if it is determined necessary or helpful by the 
  4.30  drainage authority or court, shall provide any technical 
  4.31  assistance, including engineering, surveys, hydrologic analyses, 
  4.32  or water quality studies as requested by the drainage authority 
  4.33  or court. 
  4.34     (d) When the hearing is reconvened, the drainage authority 
  4.35  or court shall consider the technical panel's report and all 
  4.36  evidence offered.  If the drainage authority or court determines 
  4.37  that storm, surface, or flood waters along the drainage system 
  5.1   or within the benefited area of the drainage system, could be 
  5.2   better managed by a water management authority, it shall 
  5.3   authorize the transfer of the drainage system. 
  5.4      Subd. 6.  [COSTS RELATED TO TRANSFER AND TRANSFER 
  5.5   PROCEEDINGS.] Costs, including engineering and attorney's fees, 
  5.6   related to the proceedings to transfer a drainage system must be 
  5.7   paid by the proposed transferee water management authority.  If 
  5.8   the drainage authority or court orders that the drainage 
  5.9   authority should not be transferred, the drainage system shall 
  5.10  reimburse the water management authority for the reasonable 
  5.11  value of engineering work conducted as part of the transfer 
  5.12  proceedings. 
  5.13     Subd. 7.  [GUARANTEE OF OUTLET; NO COMPROMISE OF EXISTING 
  5.14  RIGHTS.] (a) Any proceeding to transfer all or part of a 
  5.15  drainage system to a water management authority must guarantee 
  5.16  an outlet for property assessed for benefits on the transferred 
  5.17  drainage system of at least equal hydraulic efficiency as that 
  5.18  provided by the transferred drainage system in its 
  5.19  as-constructed, or subsequently improved, state. 
  5.20     (b) The transfer of a drainage system to a water management 
  5.21  authority is not a compromise of any property right held by an 
  5.22  owner of assessed property on the transferred drainage system. 
  5.23     (c) A water management authority shall compensate any owner 
  5.24  of property assessed for benefits on the transferred drainage 
  5.25  system for the loss or impairment of any property right 
  5.26  occurring after transfer of the drainage system. 
  5.27     Subd. 8.  [EFFECT OF TRANSFER.] (a) After transfer of a 
  5.28  drainage system, or any part thereof, to a water management 
  5.29  authority, the drainage system ceases to be subject to 
  5.30  regulation under this chapter.  The water management authority 
  5.31  may manage water within its jurisdictional boundaries according 
  5.32  to whatever law controls the function of the water management 
  5.33  authority.  The transferred drainage system shall become a works 
  5.34  and a responsibility of the transferee water management 
  5.35  authority.  All responsibility of the drainage authority for the 
  5.36  transferred drainage system ends. 
  6.1      (b) Notwithstanding any law to the contrary, transfer of a 
  6.2   drainage system under this section does not in any way diminish, 
  6.3   compromise, or reduce the availability of exemptions to the 
  6.4   Wetland Conservation Act or exceptions to the requirements for 
  6.5   public waters work permits for activities conducted in the 
  6.6   transferred drainage system.  Activities conducted in the 
  6.7   transferred drainage system must continue to be eligible for all 
  6.8   exemptions and exceptions available for activities conducted in 
  6.9   drainage systems under sections 103G.2241 and 103G.245.