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CHAPTER 103E. DRAINAGE

Table of Sections
SectionHeadnote

GENERAL PROVISIONS

103E.005DEFINITIONS.
103E.011DRAINAGE AUTHORITY POWERS.
103E.015CONSIDERATIONS BEFORE DRAINAGE WORK IS DONE.
103E.021DITCHES MUST BE PLANTED WITH PERMANENT GRASS.
103E.025PROCEDURE FOR DRAINAGE PROJECT THAT AFFECTS STATE LAND OR WATER AREA USED FOR CONSERVATION.
103E.031CONNECTION WITH DRAINS IN ADJOINING STATES.
103E.035DEFECTIVE NOTICE.
103E.041PERSONAL SERVICE IN LIEU OF OTHER METHODS OF NOTICE.
103E.043INFORMAL MEETINGS.
103E.045FAILURE OF DRAINAGE AUTHORITY TO ATTEND HEARINGS.
103E.051DEFECTIVE PROCEEDINGS.
103E.055REIMBURSEMENT OF COST OF FORMER SURVEYS WHEN USED LATER.
103E.061RIGHT OF ENTRY.
103E.065DRAINAGE INSPECTORS.
103E.071COUNTY ATTORNEY.
103E.075OBSTRUCTION OF DRAINAGE SYSTEM.
103E.081CRIMES RELATED TO DRAINAGE SYSTEMS; PENALTIES.
103E.085ENFORCEMENT.
103E.091APPEALS.
103E.095APPEAL FROM ORDERS DISMISSING OR ESTABLISHING DRAINAGE SYSTEMS.
103E.097PAYMENT OF ATTORNEY FEES ON APPEAL.
103E.101DRAINAGE PROCEEDING AND CONSTRUCTION RECORDS.
103E.105ADVICE ABOUT DRAINAGE QUESTIONS.
103E.111FIELD SURVEYS AND INVESTIGATIONS BY DIRECTOR.
103E.115HYDROLOGICAL AND DRAINAGE INFORMATION.
103E.121DRAIN TILE MANUFACTURING STUDIES.

PETITIONS FOR DRAINAGE PROJECTS

103E.202PETITIONS.
103E.212NEW DRAINAGE SYSTEM PROJECTS.
103E.215IMPROVEMENT OF DRAINAGE SYSTEM.
103E.221IMPROVEMENT OF OUTLETS.
103E.225LATERALS.
103E.227IMPOUNDING AND DIVERSION OF DRAINAGE SYSTEM WATERS.
103E.231DISMISSAL OR DELAY OF PROCEEDINGS BY PETITIONERS.
103E.235DRAINAGE SYSTEM IN TWO OR MORE COUNTIES.
103E.238COUNTY ATTORNEY REVIEW OF PETITION AND BOND.

PRELIMINARY SURVEY AND HEARING

103E.241ENGINEER.
103E.245PRELIMINARY SURVEY AND PRELIMINARY SURVEY REPORT.
103E.251FILING PRELIMINARY SURVEY REPORT.
103E.255COMMISSIONER'S PRELIMINARY ADVISORY REPORT.
103E.261PRELIMINARY HEARING.

DETAILED SURVEY AND VIEWING

103E.265ORDER FOR DETAILED SURVEY AND DETAILED SURVEY REPORT.
103E.271DETAILED SURVEY.
103E.275ENGINEER'S VARIANCE FROM DRAINAGE AUTHORITY ORDER.
103E.281SOIL SURVEY.
103E.285DETAILED SURVEY REPORT.
103E.291FILING DETAILED SURVEY REPORT.
103E.295REVISION OF ENGINEER'S DETAILED SURVEY REPORT AFTER ACCEPTANCE.
103E.301COMMISSIONER'S FINAL ADVISORY REPORT.
103E.305VIEWERS' APPOINTMENT AND QUALIFICATION.
103E.311VIEWERS' DUTIES.
103E.315ASSESSMENT OF DRAINAGE BENEFITS AND DAMAGES.
103E.321VIEWERS' REPORT.
103E.323PROPERTY OWNERS' REPORT.

FINAL HEARING

103E.325FINAL HEARING NOTICE.
103E.331JURISDICTION OF PROPERTY BY DRAINAGE AUTHORITY.
103E.335PROCEEDINGS AT THE FINAL HEARING.
103E.341DRAINAGE AUTHORITY FINAL ORDER.
103E.345APPORTIONMENT OF COST FOR JOINT COUNTY DRAINAGE SYSTEMS.

REDETERMINATION OF BENEFITS

103E.351REDETERMINATION OF BENEFITS AND DAMAGES.

OUTLETS FOR DRAINAGE SYSTEMS

103E.401USE OF DRAINAGE SYSTEM AS AN OUTLET.
103E.405OUTLETS IN ADJOINING STATES.
103E.411DRAINAGE SYSTEM AS OUTLET FOR MUNICIPALITY.

CONSTRUCTION OF DRAINAGE PROJECT

103E.501CONTRACT AND BOND.
103E.505AWARDING THE CONSTRUCTION CONTRACT.
103E.511PROCEDURE IF CONTRACT IS NOT AWARDED DUE TO BIDS OR COSTS.
103E.515DAMAGES, PAYMENT.
103E.521SUPERVISION OF CONSTRUCTION.
103E.525CONSTRUCTION AND MAINTENANCE OF BRIDGES AND CULVERTS.
103E.526CONSTRUCTION OF ROAD INSTEAD OF BRIDGE OR CULVERT.
103E.53RULES TO STANDARDIZE FORMS.
103E.531INSPECTION OF DRAINAGE CONSTRUCTION AND PARTIAL PAYMENTS.
103E.535PARTIAL PAYMENT OF RETAINED CONTRACT AMOUNTS.
103E.541EXTENSION OF TIME ON CONTRACTS.
103E.545REDUCTION OF CONTRACTOR'S BOND.
103E.551CONTRACTOR'S DEFAULT.
103E.555ACCEPTANCE OF CONTRACT.

FUNDING, COLLECTION, AND

PAYMENT OF DRAINAGE SYSTEM COSTS

103E.601DRAINAGE LIEN STATEMENT.
103E.605EFFECT OF FILED DRAINAGE LIEN.
103E.611PAYMENT OF DRAINAGE LIENS AND INTEREST.
103E.615ENFORCEMENT OF ASSESSMENTS.
103E.621SATISFACTION OF LIENS.
103E.625SUBDIVISION BY PLATTING MUST HAVE LIENS APPORTIONED.
103E.631APPORTIONMENT OF LIENS.
103E.635DRAINAGE BOND ISSUES.
103E.641DRAINAGE FUNDING BONDS.
103E.645ALLOWANCE AND PAYMENT OF FEES AND EXPENSES.
103E.651DRAINAGE SYSTEM ACCOUNT.
103E.655PAYMENT OF DRAINAGE SYSTEM COSTS.
103E.661EXAMINATION AND ESTABLISHMENT OF DRAINAGE SYSTEM ACCOUNTS BY STATE AUDITOR.

PROCEDURE TO REPAIR DRAINAGE SYSTEMS

103E.701REPAIRS.
103E.705REPAIR PROCEDURE.
103E.711COST APPORTIONMENT FOR JOINT COUNTY DRAINAGE SYSTEMS.
103E.715PROCEDURE FOR REPAIR BY PETITION.
103E.721REPLACEMENT AND HYDRAULIC CAPACITY OF BRIDGES AND CULVERTS.
103E.725COST OF REPAIR.
103E.728APPORTIONMENT OF REPAIR COSTS.
103E.731ASSESSMENT; BONDS.
103E.735DRAINAGE SYSTEM REPAIR FUND.
103E.741INCLUSION OF PROPERTY THAT HAS NOT BEEN ASSESSED BENEFITS.
103E.745COST OF REPAIR EXCEEDING BENEFITS IN ANOKA COUNTY.

CONSOLIDATION, DIVISION, AND

ABANDONMENT OF DRAINAGE SYSTEMS

103E.801CONSOLIDATION OR DIVISION OF DRAINAGE SYSTEMS.
103E.805REMOVAL OF PROPERTY FROM AND PARTIAL ABANDONMENT OF A DRAINAGE SYSTEM.
103E.811ABANDONMENT OF DRAINAGE SYSTEM.
103E.812TRANSFER OF ALL OR PART OF DRAINAGE SYSTEM.

GENERAL PROVISIONS

103E.005 DEFINITIONS.
    Subdivision 1. Applicability. The definitions in this section apply to this chapter.
    Subd. 2. Affected. "Affected" means benefited or damaged by a drainage system or project.
    Subd. 3. Auditor. "Auditor" means the auditor of the county where the petition for a drainage
project was properly filed.
    Subd. 4. Board. "Board" means the board of commissioners of the county where the
drainage system or project is located.
    Subd. 5. Commissioner. "Commissioner" means the commissioner of natural resources.
    Subd. 6. Director. "Director" means the director of the Division of Waters in the Department
of Natural Resources.
    Subd. 7. Dismissal of proceedings. "Dismissal of proceedings" means that the petition and
proceedings related to the petition are dismissed.
    Subd. 8. Ditch. "Ditch" means an open channel to conduct the flow of water.
    Subd. 9. Drainage authority. "Drainage authority" means the board or joint county drainage
authority having jurisdiction over a drainage system or project.
    Subd. 10. Drainage lien. "Drainage lien" means a lien recorded on property for the costs of
drainage proceedings and construction and interest on the lien, as provided under this chapter.
    Subd. 11. Drainage project. "Drainage project" means a new drainage system, an
improvement of a drainage system, an improvement of an outlet, or a lateral.
    Subd. 12. Drainage system. "Drainage system" means a system of ditch or tile, or both, to
drain property, including laterals, improvements, and improvements of outlets, established and
constructed by a drainage authority. "Drainage system" includes the improvement of a natural
waterway used in the construction of a drainage system and any part of a flood control plan
proposed by the United States or its agencies in the drainage system.
    Subd. 13. Engineer. "Engineer" means the engineer for a drainage project appointed by the
drainage authority under section 103E.241, subdivision 1.
    Subd. 14. Established. "Established" means the drainage authority has made the order to
construct the drainage project.
    Subd. 15. Lateral. "Lateral" means any drainage construction by branch or extension, or
a system of branches and extensions, or a drain that connects or provides an outlet to property
with an established drainage system.
    Subd. 16. Municipality. "Municipality" means a statutory or home rule charter city or a
town having urban powers under section 368.01, subdivision 1 or 1a. For purposes of sections
103E.315, 103E.611, and 103E.615, municipality includes a water management authority to
which a portion of a drainage system is transferred under section 103E.812.
    Subd. 17. Notice by mail. "Notice by mail" means a notice mailed and addressed to each
person entitled to receive the notice, if the address is known to the auditor or can be determined
by the county treasurer of the county where the affected property is located.
    Subd. 18. Owner. "Owner" means an owner of property or a buyer of property under
a contract for deed.
    Subd. 19. Passes over. "Passes over" means in reference to property that has a drainage
project or system, the 40-acre tracts or government lots or property that is bordered by, touched
by, or underneath the path of the proposed drainage project.
    Subd. 20. Person. "Person" means an individual, firm, partnership, association, or private
corporation.
    Subd. 21. Political subdivisions. "Political subdivisions" means statutory and home rule
charter cities, counties, towns, school districts, and other political subdivisions.
    Subd. 22. Proceeding. "Proceeding" means a procedure under this chapter for or related to
drainage that begins with filing a petition and ends by dismissal or establishment of a drainage
project.
    Subd. 23. Property. "Property" means real property.
    Subd. 24. Publication. "Publication" means a notice published at least once a week for three
successive weeks in a legal newspaper in general circulation in each county affected by the notice.
    Subd. 25. Public health. "Public health" includes an act or thing that tends to improve the
general sanitary condition of the community by drainage, relieving low wetland or stagnant
and unhealthful conditions, or preventing the overflow of any property that produces or tends
to produce unhealthful conditions.
    Subd. 26. Public waters. "Public waters" has the meaning given in section 103G.005,
subdivision 15
.
    Subd. 27. Public welfare or public benefit. "Public welfare" or "public benefit" includes
an act or thing that tends to improve or benefit the general public, either as a whole or as to any
particular community or part, including works contemplated by this chapter, that drain or protect
roads from overflow, protect property from overflow, or reclaim and render property suitable for
cultivation that is normally wet and needing drainage or subject to overflow.
    Subd. 28. Road. "Road" means any road used by the public for transportation purposes.
    Subd. 29. Water management authority. "Water management authority" means a county or
municipality, watershed district, watershed management organization, storm water management
district, lake improvement district, subordinate service district, joint powers organization or
other special district organized and formed according to law for the purpose of managing storm,
surface, and flood waters, or with the authority to manage storm, surface, and flood waters.
History: 1990 c 391 art 5 s 1; 2002 c 327 s 1,2
103E.011 DRAINAGE AUTHORITY POWERS.
    Subdivision 1. Generally. The drainage authority may make orders to:
(1) construct and maintain drainage systems;
(2) deepen, widen, straighten, or change the channel or bed of a natural waterway that is part
of the drainage system or is located at the outlet of a drainage system;
(3) extend a drainage system into or through a municipality for a suitable outlet; and
(4) construct necessary dikes, dams, and control structures and power appliances, pumps,
and pumping machinery as provided by law.
    Subd. 2. Drainage of water basins and watercourses. A drainage authority may not drain a
water body or begin work or activity regulated by the public waters work permit requirement
under section 103G.245 in a watercourse until the commissioner determines that the water body
or watercourse is not public waters. If a water body or watercourse is determined to be public
waters, the drainage proceedings are subject to section 103G.215 relating to replacing public
waters and the water bank program.
    Subd. 3. Permission of commissioner for work in public waters; application. (a) The
drainage authority must receive permission from the commissioner to:
(1) remove, construct, or alter a dam affecting public waters;
(2) establish, raise, or lower the level of public waters; or
(3) drain any portion of a public water.
(b) The petitioners for a proposed drainage project or the drainage authority may apply to
the commissioner for permission to do work in public waters or for the determination of public
waters status of a water body or watercourse.
    Subd. 4. Flood control. The drainage authority may construct necessary dams, structures,
and improvements and maintain them to impound and release flood water to prevent damage. The
dams, structures, and improvements may be constructed with or without a drainage project. For a
water body or watercourse that is not public waters the drainage authority may:
(1) lower or establish the level of water in the water body or watercourse to control flood
waters;
(2) build structures and improvements to maintain a water body or watercourse for flood
control or other public purposes; and
(3) construct dikes or dams in a water body to maintain water at the level designated by the
drainage authority and to drain part of the water body.
    Subd. 5. Use of external sources of funding. Notwithstanding other provisions of this
chapter, a drainage authority may accept and use funds from sources other than, or in addition to,
those derived from assessments based on the benefits of the drainage system for the purposes of
wetland preservation or restoration or creation of water quality improvements or flood control.
The sources of funding authorized under this subdivision may also be used outside the benefited
area but must be within the watershed of the drainage system.
History: 1990 c 391 art 5 s 2; 2000 c 488 art 3 s 27
103E.015 CONSIDERATIONS BEFORE DRAINAGE WORK IS DONE.
    Subdivision 1. Environmental and land use criteria. Before establishing a drainage project
the drainage authority must consider:
(1) private and public benefits and costs of the proposed drainage project;
(2) the present and anticipated agricultural land acreage availability and use in the drainage
project or system;
(3) the present and anticipated land use within the drainage project or system;
(4) flooding characteristics of property in the drainage project or system and downstream for
5-, 10-, 25-, and 50-year flood events;
(5) the waters to be drained and alternative measures to conserve, allocate, and use the waters
including storage and retention of drainage waters;
(6) the effect on water quality of constructing the proposed drainage project;
(7) fish and wildlife resources affected by the proposed drainage project;
(8) shallow groundwater availability, distribution, and use in the drainage project or system;
and
(9) the overall environmental impact of all the above criteria.
    Subd. 2. Determining public utility, benefit, or welfare. In any proceeding to establish a
drainage project, or in the construction of or other work affecting a public drainage system under
any law, the drainage authority or other authority having jurisdiction over the proceeding must
give proper consideration to conservation of soil, water, forests, wild animals, and related natural
resources, and to other public interests affected, together with other material matters as provided
by law in determining whether the project will be of public utility, benefit, or welfare.
History: 1990 c 391 art 5 s 3
103E.021 DITCHES MUST BE PLANTED WITH PERMANENT GRASS.
    Subdivision 1. Spoil banks must be spread and grass planted. In any proceeding to
establish, construct, improve, or do any work affecting a public drainage system under any law
that appoints viewers to assess benefits and damages, the authority having jurisdiction over the
proceeding shall order spoil banks to be spread consistent with the plan and function of the
drainage system. The authority shall order that permanent grass, other than a noxious weed, be
planted on the banks and on a strip 16-1/2 feet in width or to the crown of the leveled spoil bank,
whichever is the greater, on each side of the top edge of the channel of the ditch. The acreage and
additional property required for the planting must be acquired by the authority having jurisdiction.
    Subd. 2. Reseeding and harvesting grass. The authority having jurisdiction over the repair
and maintenance of the drainage system shall supervise all necessary reseeding. The permanent
grass must be maintained in the same manner as other drainage system repairs. Harvest of the
grass from the grass strip in a manner not harmful to the grass or the drainage system is the
privilege of the fee owner or assigns. The county drainage inspector shall establish rules for the
fee owner and assigns to harvest the grass.
    Subd. 3. Agricultural practices prohibited. Agricultural practices, other than those
required for the maintenance of a permanent growth of grass, are not permitted on any portion of
the property acquired for planting.
    Subd. 4. Compliance work by drainage authority. If a property owner does not bring
an area into compliance with this section as provided in the compliance notice, the inspection
committee or drainage inspector must notify the drainage authority. If a property owner does not
bring an area into compliance after being notified under section 103E.705, subdivision 2, the
drainage authority must issue an order to have the work performed to bring the property into
compliance. After the work is completed, the drainage authority must send a statement of the
expenses incurred to bring the property into compliance to the auditor of the county where the
property is located and to the property owner.
    Subd. 5. Collection of compliance expenses. (a) The amount of the expenses to bring an
area into compliance with this section is a lien in favor of the drainage authority against the
property where the expenses were incurred. The auditor must certify the expenses and enter the
amount in the same manner as other drainage liens on the tax list for the following year. The
amount must be collected in the same manner as real estate taxes for the property. The provisions
of law relating to the collection of real estate taxes shall be used to enforce payment of amounts
due under this section. The auditor must include a notice of collection of compliance expenses
with the tax statement.
(b) The amounts collected under this subdivision must be deposited in the drainage system
account.
History: 1990 c 391 art 5 s 4
103E.025 PROCEDURE FOR DRAINAGE PROJECT THAT AFFECTS STATE LAND
OR WATER AREA USED FOR CONSERVATION.
    Subdivision 1. Areas subject to this section. If a land or water area owned by the state and
held or used to protect or propagate wild animals, provide hunting or fishing for the public, or
for any other purpose relating to the conservation, development, or use of soil, water, forests,
wild animals, or related natural resources will be affected by any public project or proceeding
for drainage under any law, all procedures relating to the project or proceeding are subject to
this section, if applicable.
    Subd. 2. Conditions to take or damage state land and water areas. (a) Any part of the
state land or water area may be taken or damaged for a public project after payment of just
compensation as provided by law and under the provisions of this subdivision.
(b) The authority having jurisdiction of the drainage project or proceeding shall first find and
determine that there is public necessity for the taking or damage that is greater than the public
interest in the purposes for which the affected land and water areas are held or used by the state.
(c) In determining the compensation to be paid for the taking or damage, the authority must
give proper consideration to the value of the land and water area for the purposes it is held or used
by the state and other material elements of value.
(d) Public waters may not be taken, damaged, or impaired except as otherwise expressly
authorized by law, and a provision of any other law for the protection or conservation of public
waters may not be abridged or superseded by this subdivision.
    Subd. 3. Considerations in determining benefits. In determining benefits to the state land
or water area in any proceeding to levy assessments or offset benefits against damages, proper
consideration must be given to the value of the area for the purpose it is held or used by the
state, with other material elements of value.
    Subd. 4. Amounts paid to state. Any amounts paid to the state for taking or damaging the
state land or water area in a proceeding must be credited to the proper account for acquisition,
development, or maintenance of the areas, and the amount is appropriated to the commissioner for
those purposes to remain available until expended.
    Subd. 5. Money to pay assessments. Assessments for benefits made against the state
land or water area in a proceeding must be paid out of money appropriated and available to
pay assessments as provided by law.
History: 1990 c 391 art 5 s 5
103E.031 CONNECTION WITH DRAINS IN ADJOINING STATES.
    Subdivision 1. Procedure. If it is necessary to construct a drainage project at or near the
boundary between this state and another state or country and the work cannot be done in a
proper manner without extending the drainage project into the adjoining state or country, the
drainage authority may join with the board or tribunal of the adjoining state or country having
jurisdiction to plan and construct public drainage systems. The drainage authority in this state
may enter into contracts or arrangements with the board or tribunal of the adjoining state or
country to construct the drainage project. The proceeding and construction related to property
in this state and, as applicable, the drainage authority in relation to the joint drainage work, are
governed by this chapter.
    Subd. 2. Payment of costs. The adjoining county or district in another state or country must
pay its proper share of the necessary costs of the construction of any drainage work including
damages. If the benefits to property in the adjoining state or country are not sufficient to pay all
the costs of construction of the drainage project in that state or country, including damages,
the drainage authority may authorize or direct the affected counties to contribute sufficient
funds to complete the construction of the drainage project in the adjoining state or country, if
the construction will be of sufficient benefit to the affected property in this state to warrant the
contribution.
History: 1990 c 391 art 5 s 6
103E.035 DEFECTIVE NOTICE.
If notice is required under this chapter and proper notice has been given to some parties but
the notice is defective or not given to other parties, the drainage authority has jurisdiction of all
parties that received proper notice. The proceedings may be continued by order of the drainage
authority for the time necessary to publish, post, or mail a new notice. The new notice needs only
be given to those not properly notified by the first notice.
History: 1990 c 391 art 5 s 7
103E.041 PERSONAL SERVICE IN LIEU OF OTHER METHODS OF NOTICE.
If notice is to be given under this chapter, personal service at least ten days before the date of
hearing may be given in lieu of the manner provided. The notice must be served in the manner
provided for the service of summons in a civil action in district court.
History: 1990 c 391 art 5 s 8
103E.043 INFORMAL MEETINGS.
A drainage authority may hold informal meetings in addition to the meetings and hearings
required in this chapter to inform persons affected by the drainage system about the drainage
proceedings and provide a forum for informal discussions.
History: 1990 c 391 art 5 s 9
103E.045 FAILURE OF DRAINAGE AUTHORITY TO ATTEND HEARINGS.
If an order has been made and notice for a hearing given under this chapter, and the drainage
authority does not appear at the time and place specified for any reason, the auditor shall continue
the hearing to a date set by the auditor. The auditor shall notify the drainage authority of the
continuance and the date of hearing. The jurisdiction is continued until the date set by the auditor.
History: 1990 c 391 art 5 s 10
103E.051 DEFECTIVE PROCEEDINGS.
(a) A party may not take advantage of an error in a drainage proceeding or an informality,
error, or defect appearing in the record of the proceeding or construction, unless the party
complaining is directly affected. The modification of the benefits or damages to any property, or
the enjoining of collection of any assessment, does not affect any other property or the collection
of any assessment on other property.
(b) If a drainage project has been established and a contract awarded in good faith, without
collusion, and at a reasonable price:
(1) a defect or lack of notice in awarding, making, or executing the contract does not affect
the enforcement of an assessment; and
(2) if the contract is performed in good faith in whole or in part, a defect does not invalidate
the contract.
History: 1990 c 391 art 5 s 11
103E.055 REIMBURSEMENT OF COST OF FORMER SURVEYS WHEN USED LATER.
If after a proceeding has begun a survey has been made and a proceeding to establish a
drainage project has been dismissed or the drainage project has not been established, and if all or
a part of the former survey is used by the engineer for a drainage proceeding in the same area, the
amount saved in the subsequent proceedings must be paid to the proper parties according to this
section. If the parties who paid the expense of the former survey make a petition, the drainage
authority shall:
(1) determine the amount of benefit that was derived by the subsequent proceedings from the
former survey;
(2) order the amount of the benefit to be paid to the proper parties; and
(3) charge the amount paid as a cost of the subsequent drainage proceeding.
History: 1990 c 391 art 5 s 12
103E.061 RIGHT OF ENTRY.
In proceedings under this chapter, the engineer, the engineer's assistants, the viewers, and
the viewers' assistants may enter any property to make a survey, locate a drain, examine the
property, or estimate the benefits and damages.
History: 1990 c 391 art 5 s 13
103E.065 DRAINAGE INSPECTORS.
In counties where constructed drainage systems have an aggregate cost of more than $50,000,
the board shall appoint a competent person as county drainage inspector. The inspector may be
the county highway engineer. The inspector shall examine the drainage systems designated by the
board. The board shall specify the appointment period and compensation.
History: 1990 c 391 art 5 s 14
103E.071 COUNTY ATTORNEY.
The county attorney shall represent the county in all drainage proceedings and related
matters without special compensation. A county attorney, the county attorney's assistant, or
any attorney associated with the county attorney in business, may not otherwise appear in any
drainage proceeding for any interested person.
History: 1990 c 391 art 5 s 15
103E.075 OBSTRUCTION OF DRAINAGE SYSTEM.
    Subdivision 1. Notification to responsible party. If the board determines that a drainage
system has been obstructed, including by the installation of bridges or culverts of insufficient
hydraulic capacity, the board shall notify the person or public authority responsible for the
obstruction as soon as possible and direct the responsible party to remove the obstruction or show
the board why the obstruction should not be removed. The board must set a time and location in
the notice for the responsible person to appear before the board.
    Subd. 2. Obstruction on private property. If the obstruction is on private property, the
owner is responsible for the obstruction unless the owner proves otherwise. The owner must be
notified by certified mail at least ten days before the hearing.
    Subd. 3. Obstruction hearing. The board shall hear all interested parties and if the board
determines that the drainage system has been obstructed by a person or public authority, the
board shall order the obstruction removed by the responsible party within a reasonable time set
in the order. If the obstruction is not removed by the prescribed time, the board shall have the
obstruction removed and the auditor shall make a statement of the removal cost. The statement
must be filed in the county recorder's office as a lien on the property where the obstruction is
located or against the responsible party. The lien must be enforced and collected as liens for
drainage repairs under this chapter, except that a lien may not be filed against private property if
the board determines that the owner of the property is not responsible for the obstruction. The lien
may be enforced against the responsible party by civil action.
History: 1990 c 391 art 5 s 16
103E.081 CRIMES RELATED TO DRAINAGE SYSTEMS; PENALTIES.
    Subdivision 1. Unauthorized drain outletting into drainage system. A person may not
cause or construct a drain that outlets into a lawfully constructed drainage system except as
provided in this chapter.
    Subd. 2. Obstruction or damage of a drainage system. A person may not willfully obstruct
or damage a drainage project or system.
    Subd. 2a. Planting trees over public tile. A person must not knowingly plant trees over a
public drain tile, unless the person planting the trees receives permission from the drainage
authority.
    Subd. 2b. Planting trees over private tile. A person must not knowingly plant trees over
a private drain tile that provides for the drainage of land owned or leased by another person,
unless the person planting the trees receives permission from all persons who receive drainage
benefits from the drain tile.
    Subd. 3. Altering engineer's marking of stakes. A person may not willfully change the
location or alter markings of stakes set by the engineer in a drainage project or system.
    Subd. 4. Penalty. Violation of this section is a misdemeanor.
History: 1990 c 391 art 5 s 17; 1Sp2005 c 1 art 2 s 117,118
103E.085 ENFORCEMENT.
    Subdivision 1. Warrants and arrests. An enforcement officer, as defined in section
97A.015, subdivision 18, may execute and serve warrants, and arrest persons detected in actual
violation of sections 103E.005 to 103E.811 as provided in sections 97A.205 and 97A.211.
    Subd. 2. Prosecution. The county attorney shall prosecute all criminal actions arising under
this chapter.
History: 1990 c 391 art 5 s 18
103E.091 APPEALS.
    Subdivision 1. Grounds for appeal. A party may appeal to the district court from a recorded
order of a drainage authority made in a drainage proceeding that determines:
(1) the amount of benefits;
(2) the amount of damages;
(3) fees or expenses allowed; or
(4) whether the environmental and land use requirements and criteria of section 103E.015,
subdivision 1
, are met.
    Subd. 2. Procedure for appeals related to benefits and damages. (a) A person who
appeals the amount of benefits or damages may include benefits and damages affecting property
not owned by the appellant. Notice of the appeal must be served to the auditor and to the owner
or occupant of property included in the appeal or to the attorney representing the property
owner in the proceedings.
(b) The appellant must file a notice of appeal with the auditor within 30 days after the order
to be appealed is filed. The notice must state the particular benefits or damages appealed and the
basis for the appeal. Within 30 days after the notice is filed, the auditor must file the original
notice with the court administrator of the district court.
    Subd. 3. Procedure for appeal related to allowance of fees or expenses. An appeal
related to the allowance of fees or expenses may be to the district court of any county where the
affected property is located. The appeal must be made within 30 days after the order allowing or
disallowing the claim and is governed as applicable by the provisions of subdivision 4.
    Subd. 4. Appeal trial. (a) The issues in the appeal are entitled to a trial by a jury in the
district court of the county where the drainage proceeding was pending.
(b) At the request of the appellant, the trial must be held at the district court of the county
where the affected property is located. The court administrator of the district court where the
appeal is first filed shall make, certify, and file with the court administrator of the district court
of the county where the trial is transferred, a transcript of the papers and documents on file in
the court administrator's office in the proceedings related to the matters of the appeal. After
the final determination of the appeal, the court administrator of the district court that tried the
appeal shall certify and return the verdict to the district court of the county where the drainage
proceedings were filed.
(c) The appeal shall take precedence over all other civil court matters. If there is more
than one appeal to be tried in one county, the court may, on its own motion or the motion of
an interested party, consolidate two or more appeals and try them together, but the rights of
the appellants must be determined separately. If the appellant does not prevail, the cost of the
trial must be paid by the appellant.
(d) The court administrator of the district court where the appeal is filed shall file a certified
copy of the final determination of the appeal with the auditor of the affected counties.
    Subd. 5. Effect of determination. For all appeals, the amount awarded by the jury as a
determination of the issue appealed shall replace the amount that was appealed.
History: 1990 c 391 art 5 s 19
103E.095 APPEAL FROM ORDERS DISMISSING OR ESTABLISHING DRAINAGE
SYSTEMS.
    Subdivision 1. Notice of appeal. A party may appeal an order made by the board that
dismisses drainage proceedings or establishes or refuses to establish a drainage project to the
district court of the county where the drainage proceedings are pending. The appellant must serve
notice of the appeal to the auditor within 30 days after the order is filed. After notice of the appeal
is served, the appeal may be brought to trial by the appellant or the drainage authority after
notifying the other party at least ten days before the trial date.
    Subd. 2. Trial. The appeal must be tried by the court without a jury. The court shall examine
the entire drainage proceeding and related matters and receive evidence to determine whether
the findings made by the board can be sustained. At the trial the findings made by the board are
prima facie evidence of the matters stated in the findings, and the board's order is prima facie
reasonable. If the court finds that the order appealed is lawful and reasonable, it shall be affirmed.
If the court finds that the order appealed is arbitrary, unlawful, or not supported by the evidence,
it shall make an order, justified by the court record, to take the place of the appealed order, or
remand the order to the board for further proceedings. After the appeal has been determined by
the court, the board shall proceed in conformity with the court order.
    Subd. 3. Determination of benefits and damages after court order. If the order establishing
a drainage project is appealed, the trial of appeals related to benefits or damages in the drainage
proceeding must be stayed until the establishment appeal is determined. If the order establishing
the drainage project is affirmed, appeals related to benefits and damages must then be tried.
    Subd. 4. Procedure if appeal order establishes drainage project. If an order refusing to
establish a drainage project is appealed, and the court, by order, establishes the drainage project,
the auditor shall give notice by publication of the filed order. The notice is sufficient if it refers to
the drainage project or system by number or other descriptive designation, states the meaning of
the order, and states the date the court order was filed. A person may appeal the establishment
order to the district court as provided in this section.
    Subd. 5. Appeal of appellate order. A party aggrieved by a final order or judgment rendered
on appeal to the district court may appeal as in other civil cases. The appeal must be made and
perfected within 30 days after the filing of the order or entry of judgment.
History: 1990 c 391 art 5 s 20
103E.097 PAYMENT OF ATTORNEY FEES ON APPEAL.
If the commissioner of natural resources is a party making an appeal under section 103E.091
or 103E.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.
History: 1990 c 391 art 5 s 21
103E.101 DRAINAGE PROCEEDING AND CONSTRUCTION RECORDS.
    Subdivision 1. Documents are public records. All maps, plats, charts, drawings, plans,
specifications, and other documents that have been filed, received in evidence, or used in
connection with a drainage proceeding or construction are subject to the provisions on public
records in section 15.17.
    Subd. 2. Record requirements. All maps, plats, profiles, plans, and specifications prepared
and used in relation to a proceeding must:
(1) be uniform;
(2) have each sheet bound and marked to identify the proceeding by the drainage project
and system number;
(3) show the name of the person preparing the sheet;
(4) show the date the sheet was prepared; and
(5) conform to rules and standards prescribed by the director of the Division of Waters.
    Subd. 3. Index of proceedings and records. The auditor shall keep all orders, exhibits,
maps, charts, profiles, plats, plans, specifications, and records of the proceedings. These records
may not be removed except when the board makes a written order to remove them. The auditor
shall keep an accurate index of the proceedings and related documents in a bound book.
    Subd. 4. Engineer's documents. All original plats, profiles, records, and field books made
by the engineer during the proceedings or the construction of a drainage project are public records
and the property of the drainage authority. These public records must be filed with the auditor
under the direction of the drainage authority when construction is completed or when the engineer
stops acting for the drainage project, whichever is earlier.
    Subd. 5. Filing and storage facilities. County boards shall provide the auditor with
necessary filing and storage facilities to protect the files and records of all proceedings. The county
boards may provide for the copying and filing of the documents and records of proceedings by
photographic devices as provided for public records under section 15.17. In the event of loss of
the originals, the photographic copies are originals after authentication by the auditor.
    Subd. 6. Records are prima facie evidence. The record of proceedings under this chapter
and of orders made by the drainage authority or the district court in the proceedings, or a certified
copy of a record or order, is prima facie evidence of the facts stated in the record or order and of
the regularity of all proceedings prior to the making of the order.
History: 1990 c 391 art 5 s 22
103E.105 ADVICE ABOUT DRAINAGE QUESTIONS.
The director shall provide advice to a drainage authority or engineer, upon request, about
engineering questions or problems in connection with a drainage project or drainage system.
History: 1990 c 391 art 5 s 23
103E.111 FIELD SURVEYS AND INVESTIGATIONS BY DIRECTOR.
    Subdivision 1. Authorization. If a field survey or investigation of a drainage project or
drainage system is determined to be necessary by the director or is requested in writing by the
drainage authority, the director may conduct the survey or investigation.
    Subd. 2. Costs if requested by drainage authority. If the field survey or investigation is
made at the request of a drainage authority, the cost must be reported to the drainage authority and
paid by the drainage authority as a drainage project or drainage system expense.
History: 1990 c 391 art 5 s 24
103E.115 HYDROLOGICAL AND DRAINAGE INFORMATION.
(a) The director may prepare and publish: (1) runoff data; (2) information about the capacity
of drain tile and ditches; (3) specifications for drain tile, ditches, and ditch construction; and (4)
standard procedural forms for public ditch proceedings.
(b) The director may furnish the information to engineers and drainage authorities for their
advice and information.
History: 1990 c 391 art 5 s 25
103E.121 DRAIN TILE MANUFACTURING STUDIES.
    Subdivision 1. Drain tile investigations. The director may:
(1) investigate the methods used in the manufacture of drain tile;
(2) determine the causes of drain tile failure; and
(3) conduct research and experimentation to improve the quality of drain tile.
    Subd. 2. Manufacturing investigations and tests. The director may make inspections and
tests of manufacturing processes and materials used and the resultant product of a manufacturing
plant in the state where drain tile is made and sold to drainage authorities or the general public.
The director, or an authorized agent of the director, must have free access to manufacturing plants
of drain tile sold in this state for inspections and tests.
    Subd. 3. Distribution of information. The results of inspections and tests must be made
public for drainage authorities, engineers, tile manufacturers, and others interested in the use of
drain tile.
History: 1990 c 391 art 5 s 26

PETITIONS FOR DRAINAGE PROJECTS

103E.202 PETITIONS.
    Subdivision 1. Applicability. This section applies to a petition for a drainage project and
a petition for repair.
    Subd. 2. Signatures on petition. (a) A petition must be signed by a requisite number of
owners of 40-acre tracts or government lots and property that the drainage project described in the
petition passes over, or by the property owners of the required percentage of the property area
determined by the total and percentage of area of 40-acre tracts or government lots that the
proposed drainage project passes over, excluding areas in and holders of easements for utilities and
roads. A petition may be signed by the commissioner of transportation or by a political subdivision
if the property is in their jurisdiction and is passed over by the proposed drainage project.
(b) Each separate parcel of property counts as one signature but the petition must be signed
by all owners of the parcel to count as a signature. The signature of each entity regardless of the
number of parcels of property owned counts as one signature on the petition.
(c) Paragraph (a) does not apply to a petition for an improvement of an outlet.
    Subd. 3. Withdrawal of a petitioner. After a petition has been filed, a petitioner may not
withdraw from the petition except with the written consent of all other petitioners on the filed
petition.
    Subd. 4. Filing petition and bond. A petition for a drainage project and a bond must be
filed with the auditor. If a drainage system is within two or more counties, the petition must be
filed with the auditor of the county with the greatest area of property that the proposed drainage
project passes over.
    Subd. 5. Petitioners' bond. One or more petitioners must file a bond with the petition for
at least $10,000 that is payable to the county where the petition is filed, or for a petition for a
proposed joint county drainage system or a petition for a drainage project affecting a joint county
drainage system, the bond must be payable to all of the counties named in the petition. The bond
must have adequate surety and be approved by the county attorney where the petition is filed. The
bond must be conditioned to pay the costs incurred if the proceedings are dismissed or a contract
is not awarded to construct the drainage system proposed in the petition.
    Subd. 6. Expenses not to exceed bond. The costs incurred before the proposed drainage
project is established may not exceed the amount of the petitioners' bond. A claim for expenses
greater than the amount of the bond may not be paid unless an additional bond is filed. If the
drainage authority determines that the cost of the proceeding will be greater than the petitioners'
bond before the proposed drainage project is established, the drainage authority must require an
additional bond to cover all costs to be filed within a prescribed time. The proceeding must be
stopped until the additional bond prescribed by the drainage authority is filed. If the additional
bond is not filed within the time prescribed, the proceeding must be dismissed.
History: 1990 c 391 art 5 s 27
103E.212 NEW DRAINAGE SYSTEM PROJECTS.
    Subdivision 1. Procedure. To establish a new drainage system under this chapter, the
petitioners and drainage authority must proceed according to this section and the provisions
applicable to establishment of drainage projects.
    Subd. 2. Signatures on petition. The petition for a new drainage system must be signed
by a majority of the owners of the property that the proposed drainage system described in the
petition passes over, or by the property owners of at least 60 percent of the area that the proposed
new drainage system passes over.
    Subd. 3. Petition requirements. The petition must:
(1) describe the 40-acre tracts or government lots and property where the proposed new
drainage system passes over, including names and addresses of the property owners from records
in the county assessor's office;
(2) describe the starting point, the general course, and the terminus of the proposed drainage
system;
(3) state why the proposed drainage system is necessary;
(4) state that the proposed drainage system will benefit and be useful to the public and will
promote public health; and
(5) state that the petitioners will pay all costs of the proceedings if the proceedings are
dismissed or the contract for the construction of the proposed drainage system is not awarded.
History: 1990 c 391 art 5 s 28
103E.215 IMPROVEMENT OF DRAINAGE SYSTEM.
    Subdivision 1. Procedure. The procedure in this section must be used to improve an
established and constructed drainage system.
    Subd. 2. Definition. In this section "improvement" means the tiling, enlarging, extending,
straightening, or deepening of an established and constructed drainage system including
construction of ditches to reline or replace tile and construction of tile to replace a ditch.
    Subd. 3. Limit of extension. An improvement may only extend a drainage system
downstream to a more adequate outlet and the extension may not exceed one mile.
    Subd. 4. Petition. (a) A petition must be signed by:
(1) at least 26 percent of the owners of the property affected by the proposed improvement;
(2) at least 26 percent of the owners of property that the proposed improvement passes over;
(3) the owners of at least 26 percent of the property area affected by the proposed
improvement; or
(4) the owners of at least 26 percent of the property area that the proposed improvement
passes over.
(b) The petition must be filed with the auditor or, for a drainage system in more than one
county, with the auditor of the county having the largest area of property the improvement would
be located on.
(c) The petition must:
(1) designate the drainage system proposed to be improved by number or another description
that identifies the drainage system;
(2) state that the drainage system has insufficient capacity or needs enlarging or extending to
furnish sufficient capacity or a better outlet;
(3) describe the starting point, general course, and terminus of any extension;
(4) describe the improvement, including the names and addresses of owners of the 40-acre
tracts or government lots and property that the improvement passes over;
(5) state that the proposed improvement will be of public utility and promote the public
health; and
(6) contain an agreement by the petitioners that they will pay all costs and expenses that
may be incurred if the improvement proceedings are dismissed.
    Subd. 5. Subsequent proceedings. When a petition and the bond required by section
103E.202 are filed, the auditor shall present the petition to the board at its next meeting or, for
a joint county drainage system, to the joint county drainage authority within ten days after the
petition is filed. The drainage authority shall appoint an engineer to examine the drainage system
and make an improvement report. The improvement proceedings must be conducted under this
chapter as provided for the original proceedings for the establishment of a drainage project. The
benefits and damages determined must be as a result of the proposed improvement. Assessments
for the repair of the improvement must be based on the benefits determined for the improvement.
    Subd. 6. Petition for separable part of the drainage system needing repair. (a) If the
existing drainage system needs repair and the petition for the improvement is for a separable part
only of the existing drainage system, the engineer may include in the detailed survey report a
statement showing the proportionate estimated cost of the proposed improvement required to
repair the separable part of the existing system and the estimated proportionate cost of the added
work required for the improvement. The notice of hearing on the detailed survey report must
be given by publication and mailing to all persons owning property affected by the existing
drainage system. The hearing may be held at the same time and location as the establishment
hearing for the improvement.
(b) At the hearing, if the drainage authority determines that only a separable portion of
the existing drainage system will be improved and that the portion needs repair, the drainage
authority shall determine and assess, by order, the proportionate cost of the improvement that
would be required to repair the separable portion of the drainage system to be improved. The
order must direct that:
(1) the repair portion is allocated as repairs and assessed against all property benefited by the
entire drainage system, as provided by section 103E.731; and
(2) the balance of the cost of the improvement is assessed in addition to the repair assessment
against the property benefited by the improvement.
History: 1990 c 391 art 5 s 29
103E.221 IMPROVEMENT OF OUTLETS.
    Subdivision 1. Conditions for improvement of outlets. If a public or private proposed
drainage project or existing drainage system has waters draining into an existing drainage system,
watercourse, or body of water, and the construction or proposed construction of the drainage
project causes an overflow of the existing drainage system, watercourse, or body of water on
adjoining property, an affected county or the owners of the overflowed property may start outlet
improvement proceedings under this section.
    Subd. 2. Petition. (a) A petition must be signed by the board of an affected county, by at
least 26 percent of the owners of adjoining overflowed property, or by the owners of at least 26
percent of the area of the overflowed property. The petition must:
(1) describe the property that has been or is likely to be overflowed including the names and
addresses of the property owners from records in the county assessor's office;
(2) state in general terms by number or otherwise the drainage systems that have caused
or are likely to cause the overflow;
(3) describe the location of the overflowed drainage system, watercourse, or body of water
and the outlet;
(4) show the necessity of the improvement by enlarging the system or controlling the waters
by off-take ditches, additional outlets, or otherwise;
(5) show that the outlet improvement will protect the adjoining property from overflow;
(6) state that the improvement will be of public benefit and utility and improve the public
health; and
(7) state that the petitioners will pay all costs incurred if the proceedings are dismissed or a
contract for construction of the outlet improvement is not awarded.
(b) The petitioners, except for a petition made by the board, shall give the required bond.
    Subd. 3. Filing of petition. The petition shall be filed with the county auditor. If the board
makes the petition, it must be addressed to the drainage authority and filed with the auditor. If part
of the improvement or the overflowed property is located in more than one county, the petition
must be filed with the auditor of the county with the greatest affected area.
    Subd. 4. Jurisdiction of drainage authority. After the petition is filed, the board or
joint county drainage authority where the petition is filed has jurisdiction of the petition, the
improvement, the affected property, and all proceedings for the establishment and construction of
the outlet improvement and the assessment of property benefited by the outlet improvement, as
provided for establishment and construction of a drainage project under this chapter.
    Subd. 5. Preliminary survey report requirements. In the preliminary survey report, the
engineer shall show the existing or proposed drainage projects or systems that cause the overflow,
the property drained or to be drained by the drainage project, and the names of affected property
owners.
    Subd. 6. Benefited property to be determined by viewers. If, after the preliminary survey
report hearing, a detailed survey is ordered and viewers are appointed, the viewers shall determine
and report the benefits to all property from the outlet improvement including property drained or
to be drained by the existing drainage system and proposed drainage project.
History: 1990 c 391 art 5 s 30
103E.225 LATERALS.
    Subdivision 1. Petition. (a) Persons that own property in the vicinity of an existing drainage
system may petition for a lateral that connects their property with the drainage system. The
petition must be signed by at least 26 percent of the owners of the property or by the owners of at
least 26 percent of the area of the property that the lateral passes over. The petition must be filed
with the auditor, or for property in more than one county, the petition must be filed with the auditor
of the county with the largest property area to be passed over by the lateral. The petition must:
(1) describe in general terms the starting point, general course, and terminus of the proposed
lateral;
(2) describe the property traversed by the lateral including the names and addresses of the
property owners from records in the county assessor's office;
(3) state the necessity to construct the lateral;
(4) state that, if constructed, the lateral will be of public benefit and utility and promote
the public health;
(5) request that the lateral be constructed and connected with the drainage system; and
(6) provide that the petitioners will pay all costs incurred if the proceedings are dismissed or
if a contract for the construction of the lateral is not awarded.
(b) The petitioners shall give the bond required by section 103E.202, subdivision 5.
    Subd. 2. Establishment procedure. After the petition is filed, the procedure to establish and
construct the lateral is the same as that provided in this chapter to establish a drainage project.
    Subd. 3. Authority necessary for property not assessed. A lateral may not be constructed
to drain property that is not assessed benefits for the existing drainage system until express
authority for the use of the existing drainage system as an outlet for the lateral has been obtained
under section 103E.401.
History: 1990 c 391 art 5 s 31
103E.227 IMPOUNDING AND DIVERSION OF DRAINAGE SYSTEM WATERS.
    Subdivision 1. Petition. (a) To conserve and make more adequate use of our water resources,
a person, public or municipal corporation, governmental subdivision, the state or a department
or agency of the state, the commissioner of natural resources, and the United States or any of
its agencies, may petition for the installation of dams or other control works in drainage ditch
systems to impound or divert waters for beneficial use. The petition must be directed to the
drainage authority where the drainage system is located.
(b) The petition must contain the location of the installation, plans, and specifications for the
proposed structure and a map of the areas likely to be affected by the impoundment or diversion.
(c) The petitioner shall agree to be responsible for the cost of installation and construction
of the structure.
(d) The petition must also be accompanied by a public waters work permit or a water use
permit from the commissioner of natural resources if required under chapter 103G.
    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, or a municipality.
    Subd. 3. Procedure to establish project. (a) After receiving the petition, bond, and permit,
if required, the drainage authority must appoint an engineer to investigate the effect of the
proposed installation and file a report of findings.
(b) After filing of the engineer's report, notice must be given and a public hearing held as
provided in section 103E.261.
(c) If from the hearing it appears from the engineer's report and other evidence presented that
the installation will be of a public or private benefit and that it will not impair the utility of the
ditch or deprive affected land owners of its benefit, the drainage authority shall make an order
modifying the drainage system and issue a permit authorizing its installation.
    Subd. 4. Flowage easements required. Before installing or constructing an impoundment or
diversion, the petitioner shall obtain rights-of-way and flowage easements from owners of land
to be affected by it.
    Subd. 5. Assessment of maintenance and repair costs. The order of the drainage authority
modifying the drainage system must provide that construction and later maintenance and repairs
of the drainage system modification and installation must be done by the petitioner without
assessment of the cost to the property owners previously within the drainage system.
History: 1990 c 391 art 5 s 32
103E.231 DISMISSAL OR DELAY OF PROCEEDINGS BY PETITIONERS.
    Subdivision 1. Dismissal. (a) A proceeding under this chapter may be dismissed by a
majority of the petitioners if they own at least 60 percent of the area owned by all of the petitioners
as described in the petition.
(b) The proceeding may be dismissed at any time before the proposed drainage project is
established after payment of the cost of the proceeding. If the costs cannot be collected, each and
all petitioners are liable for unpaid assessments. The drainage authority shall determine and assess
the cost of the proceeding against the persons liable. After the proceeding is dismissed any other
action on the proposed drainage project must begin with a new petition.
    Subd. 2. Delay. The drainage authority may delay drainage proceedings and drainage
project construction under this chapter if a majority of the petitioners petition for a delay and the
drainage authority holds a hearing on the petition. The delay may be for a period determined by
the drainage authority. The drainage authority shall determine the cost of the proceedings up to
the time the proceedings are delayed and when the costs are to be paid. The costs may include
interest on the costs due.
History: 1990 c 391 art 5 s 33
103E.235 DRAINAGE SYSTEM IN TWO OR MORE COUNTIES.
    Subdivision 1. Designation. A petition for a proposed drainage project in two or more
counties must be designated as a joint county drainage system with a number assigned by the
auditor of the county with the largest area of property in the drainage system.
    Subd. 2. Joint county drainage authority. The board where a petition for a proposed joint
county drainage project is filed shall notify the board of each county where property is affected by
the drainage system and request the boards to meet jointly and consider the petition. The boards
shall select five of their members at the meeting to be the drainage authority. At least one member
must be from each board. The drainage authority shall be known as the joint county drainage
authority with a joint county drainage project or system number. A vacancy in the membership of
the joint county drainage authority must be filled by joint action of the boards.
    Subd. 3. Transfer of drainage systems to watershed districts not affected. This section
does not affect the transfer of a drainage system to the board of managers of a watershed district
under chapter 103D.
History: 1990 c 391 art 5 s 34
103E.238 COUNTY ATTORNEY REVIEW OF PETITION AND BOND.
The county attorney must review each petition and bond filed with the county to determine if
it meets the requirement of the proceedings for which it is intended. The county attorney must
review the petition and bond within 30 days after it is filed. The county attorney must:
(1) refer the petition and bond back to the petitioners if it does not meet the requirements,
with the county attorney's opinion describing the deficiencies of the petition; or
(2) refer the petition to the drainage authority.
History: 1990 c 391 art 5 s 35

PRELIMINARY SURVEY AND HEARING

103E.241 ENGINEER.
    Subdivision 1. Appointment. Within 30 days after receiving a petition and bond from the
county attorney, the drainage authority shall, by order, appoint an engineer to make a preliminary
survey within a prescribed time. The engineer must be the county highway engineer of a county
where the affected property is located or a professional engineer registered under state law. The
engineer is the engineer for the drainage project throughout the proceeding and construction
unless otherwise ordered. Each appointed engineer must file an oath and bond. The engineer may
be removed by the drainage authority at any time. If the engineer position is vacant, the drainage
authority shall appoint another engineer as soon as possible.
    Subd. 2. Oath; bond. An appointed engineer must subscribe to an oath to faithfully perform
the assigned duties in the best manner possible and file a bond with the auditor. Within ten days
after being appointed, the drainage authority shall set an amount of at least $5,000 for the bond.
The bond must have adequate surety and be payable to the county where the petition is filed, or
for a proposed joint county drainage project to all counties in the petition. The bond must be
conditioned to pay any person or the drainage authority for damages and injuries resulting from
negligence of the engineer while the engineer is acting in the proceedings or construction and
provide that the engineer will diligently and honestly perform the engineer's duties. The bond
is subject to approval by the auditor. The aggregate liability of the surety for all damages may
not exceed the amount of the bond.
    Subd. 3. Assistants; compensation. The engineer may appoint assistant engineers and hire
help necessary to complete the engineer's duties. The engineer is responsible for the assistant
engineers and may remove them. The compensation of the engineer, assistant engineers, and other
employees is provided by section 103E.645.
    Subd. 4. Engineer's reports. The engineer shall make an expense report every two weeks
after the beginning of the engineer's work until the construction contract is awarded. The report
must show costs incurred by the engineer and expenses incurred under the engineer's direction
relating to the proceeding, and include the names of the engineer, engineer assistants, and
employees and the time each was employed, and every item of expense incurred by the engineer.
The engineer must file this report with the auditor as soon as possible and may not incur expenses
for the proceeding greater than the petitioners' bond.
    Subd. 5. Consulting engineer. After the engineer is appointed and before construction of
the drainage project is finished, the drainage authority may employ an engineer as a consulting
engineer for the proceeding and construction. A consulting engineer shall advise the engineer and
drainage authority on engineering matters and problems that may arise related to the proceeding
and construction of the drainage project. The drainage authority shall determine the compensation
for the consulting engineer.
History: 1990 c 391 art 5 s 36
103E.245 PRELIMINARY SURVEY AND PRELIMINARY SURVEY REPORT.
    Subdivision 1. Survey. The engineer shall proceed promptly to:
(1) examine the petition and order;
(2) make a preliminary survey of the area likely to be affected by the proposed drainage
project to enable the engineer to determine whether the proposed drainage project is necessary
and feasible with reference to the environmental and land use criteria in section 103E.015,
subdivision 1
;
(3) examine and gather information related to determining whether the proposed drainage
project substantially affects areas that are public waters; and
(4) if the proposed drainage project requires construction of an open channel, examine the
nature and capacity of the outlet and any necessary extension.
    Subd. 2. Limitation of survey. The engineer shall restrict the preliminary survey to the
drainage area described in the petition, except that to secure an outlet the engineer may run levels
necessary to determine the distance for the proper fall of the water. The preliminary survey must
consider the impact of the proposed drainage project on the environmental and land use criteria in
section 103E.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 project area, and may accept data, plats, plans, or information relating to the
project furnished by United States engineers. The engineer does not need to make the preliminary
survey if the material furnished by the United States is sufficient for the engineer to make the
preliminary survey report.
    Subd. 4. Preliminary survey report. The engineer shall report the proposed drainage
project plan or recommend a different practical plan. The report must give sufficient information,
in detail, to inform the drainage authority on issues related to feasibility, and show changes
necessary to make the proposed plan practicable and feasible including extensions, laterals, and
other work. If the engineer finds the proposed drainage project in the petition is feasible and
complies with the environmental and land use criteria in section 103E.015, subdivision 1, the
engineer shall include in the preliminary survey report a preliminary plan of the drainage project
showing the proposed ditches, tile, laterals, and other improvements, the outlet of the project,
the watershed of the drainage project or system, and the property likely to be affected and its
known owners. The plan must show:
(1) the elevation of the outlet and the controlling elevations of the property likely to be
affected referenced to standard sea level datum, if practical;
(2) the probable size and character of the ditches and laterals necessary to make the plan
practicable and feasible;
(3) the character of the outlet and whether it is sufficient;
(4) the probable cost of the drains and improvements shown on the plan;
(5) all other information and data necessary to disclose the practicability, necessity, and
feasibility of the proposed drainage project;
(6) consideration of the drainage project under the environmental and land use criteria in
section 103E.015, subdivision 1; and
(7) other information as ordered by the drainage authority.
History: 1990 c 391 art 5 s 37
103E.251 FILING PRELIMINARY SURVEY REPORT.
The engineer shall file the completed preliminary survey report in duplicate with the auditor.
The auditor shall send one copy of the report to the director. If the proposed drainage project
involves a joint county drainage project or system, a copy of the report must be filed with the
auditor of each affected county.
History: 1990 c 391 art 5 s 38
103E.255 COMMISSIONER'S PRELIMINARY ADVISORY REPORT.
The commissioner shall make a preliminary advisory report to the drainage authority with
an opinion about the adequacy of the preliminary survey report. The commissioner shall state
any additional investigation and evaluation that should be done relating to public waters that
may be affected and environmental and land use criteria in section 103E.015, subdivision 1,
and cite specific portions of the preliminary survey report that are determined inadequate. The
commissioner shall file an initial preliminary advisory report with the auditor before the date of
the preliminary hearing. The commissioner may request additional time for review and evaluation
of the preliminary survey report if additional time is necessary for proper evaluation. A request for
additional time for filing the commissioner's preliminary advisory report may not be made more
than five days after the date of the notice by the auditor that a date is to be set for the preliminary
hearing. An extension of time may not exceed two weeks after the date of the request.
History: 1990 c 391 art 5 s 39
103E.261 PRELIMINARY HEARING.
    Subdivision 1. Notice. When the preliminary survey report is filed, the auditor shall promptly
notify the drainage authority. The drainage authority in consultation with the auditor shall set a
time, by order, not more than 30 days after the date of the order, for a hearing on the preliminary
survey report. At least ten days before the hearing, the drainage authority after consulting with
the auditor shall give notice by mail of the time and location of the hearing to the petitioners,
owners of property, and political subdivisions likely to be affected by the proposed drainage
project in the preliminary survey report.
    Subd. 2. Hearing. The engineer shall attend the preliminary hearing and provide necessary
information. The petitioners and all other interested parties may appear and be heard. The
commissioner's advisory report on the preliminary plan must be publicly read and included in
the record of proceedings.
    Subd. 3. Sufficiency of petition. (a) The drainage authority shall first examine the petition
and determine if it meets the legal requirements.
(b) If the petition does not meet the legal requirements of this chapter, the hearing shall be
adjourned until a specified date by which the petitioners must resubmit the petition. The petition
must be referred back to the petitioners who, by unanimous action, may amend the petition. The
petitioners may obtain signatures of additional property owners as added petitioners.
(c) When the hearing is reconvened, if the petition is not resubmitted or does not meet the
legal requirements, the proceedings must be dismissed.
    Subd. 4. Dismissal. (a) The drainage authority shall dismiss the proceedings if it determines
that:
(1) the proposed drainage project is not feasible;
(2) the adverse environmental impact is greater than the public benefit and utility after
considering the environmental and land use criteria in section 103E.015, subdivision 1, and the
engineer has not reported a plan to make the proposed drainage project feasible and acceptable;
(3) the proposed drainage project is not of public benefit or utility; or
(4) the outlet is not adequate.
(b) If the proceedings are dismissed, any other action on the proposed drainage project must
begin with a new petition.
    Subd. 5. Findings and order. (a) The drainage authority shall state, by order, its findings
and any changes that must be made in the proposed drainage project from those outlined in the
petition, including changes necessary to minimize or mitigate adverse impact on the environment,
if it determines that:
(1) the proposed drainage project outlined in the petition, or modified and recommended
by the engineer, is feasible;
(2) there is necessity for the proposed drainage project;
(3) the proposed drainage project will be of public benefit and promote the public health,
after considering the environmental and land use criteria in section 103E.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 project with the order. The order and accompanying
documents must be filed with the auditor.
    Subd. 6. Outlet is existing drainage system. If the outlet is an existing drainage system,
the drainage authority may determine that the outlet is adequate and obtain permission to use
the existing drainage system as an outlet. The drainage authority shall assign a number to the
proposed drainage project and proceed under section 103E.401 to act in behalf of the proposed
drainage project.
    Subd. 7. Effect of findings. (a) For all further proceedings, the order modifies the petition
and the order must be considered with the petition.
(b) The findings and order of the drainage authority at the preliminary hearing are conclusive
only for the signatures and legal requirements of the petition, the nature and extent of the
proposed plan, and the need for a detailed survey, and only for the persons or parties shown
by the preliminary survey report as likely to be affected by the proposed drainage project. All
questions related to the practicability and necessity of the proposed drainage project are subject to
additional investigation and consideration at the final hearing.
History: 1990 c 391 art 5 s 40

DETAILED SURVEY AND VIEWING

103E.265 ORDER FOR DETAILED SURVEY AND DETAILED SURVEY REPORT.
    Subdivision 1. Order. When the preliminary hearing order is filed with the auditor, the
drainage authority shall order the engineer to make a detailed survey with plans and specifications
for the proposed drainage project and submit a detailed survey report to the drainage authority
as soon as possible.
    Subd. 2. Waiver. The drainage authority may waive the detailed survey order and the
detailed survey if it determines that adequate data, plans, and specifications have been furnished
by a United States engineer.
History: 1990 c 391 art 5 s 41
103E.271 DETAILED SURVEY.
    Subdivision 1. Survey and examination. When an order for a detailed survey is filed, the
engineer shall proceed to survey the lines of the proposed drainage project in the preliminary
hearing order, and survey and examine affected property.
    Subd. 2. Survey requirements. All drainage lines must be surveyed in 100-foot stations
and elevations must be based on standard sea level datum, if practical. Bench marks must be
established on permanent objects along the drainage line, not more than one mile apart. Field
notes made by the engineer must be entered in bound field books and preserved by the engineer
until they are filed with the auditor.
History: 1990 c 391 art 5 s 42
103E.275 ENGINEER'S VARIANCE FROM DRAINAGE AUTHORITY ORDER.
(a) In planning a proposed drainage project, the engineer may vary from the starting point
and the line and plan described by the preliminary hearing order if necessary to drain the property
likely to be assessed in the proposed drainage project.
(b) The engineer may:
(1) survey and recommend the location of additional necessary ditches and tile;
(2) where better results will be accomplished and more desirable outlets secured, provide
for the extension of the outlet; and
(3) provide for different parts of the drainage to flow in different directions with more
than one outlet.
(c) The open ditches do not have to connect if they drain the area to be affected in the
petition. The variance must be reported with similar information in the detailed survey report.
History: 1990 c 391 art 5 s 43
103E.281 SOIL SURVEY.
The engineer shall make a soil survey if: (1) the drainage authority orders a soil survey; (2)
the commissioner requests a soil survey; or (3) the engineer determines a soil survey is necessary.
The soil survey must show the nature and character of the soil in the proposed drainage project
area and include the engineer's findings from the soil survey. The report on the soil survey must be
included in the detailed survey report or reported and filed separately before the final hearing.
History: 1990 c 391 art 5 s 44
103E.285 DETAILED SURVEY REPORT.
    Subdivision 1. Report and information required. The engineer shall prepare a detailed
survey report that includes the data and information in this section.
    Subd. 2. Map. A complete map of the proposed drainage project and drainage system must
be drawn to scale, showing:
(1) the terminus and course of each drain and whether it is ditch or tile, and the location
of other proposed drainage works;
(2) the location and situation of the outlet;
(3) the watershed of the proposed drainage project and the subwatershed of main branches, if
any, with the location of existing highway bridges and culverts;
(4) all property affected, with the names of the known owners;
(5) public roads and railways affected;
(6) the outline of any lake basin, wetland, or public water body affected;
(7) other physical characteristics of the watershed necessary to understand the proposed
drainage project and the affected drainage system; and
(8) the area to be acquired to maintain a grass strip under section 103E.021.
    Subd. 3. Profile of drainage lines. A profile of all proposed drainage lines must be presented
showing, graphically, the elevation of the ground and gradient at each 100-foot station, and the
station number at each section line and at each property line. The profile must show information
necessary to understand it, including, in the case of an open ditch, the bottom width and side slope
and, in the case of a tiled ditch, the size of tile.
    Subd. 4. Bridge and culvert plans. Plans for private bridges and culverts to be constructed
by and as a part of the proposed drainage project and plans for other works to be constructed for
the proposed drainage project must be presented. A list must be made that shows the required
minimum hydraulic capacity of bridges and culverts at railways and highways that cross ditches,
and at other prospective ditch crossings where bridges and culverts are not specified to be
constructed as part of the proposed drainage project. Plans and estimates of the cost of highway
bridges and culverts must be prepared for the viewers to determine benefits and damages.
    Subd. 5. Tabular statement of excavation, construction, and cost. A tabular statement
must be prepared showing:
(1) the number of cubic yards of excavation, linear feet of tile, and average depth on each
tile line;
(2) the bridges, culverts, and works to be constructed under the plans for the drainage
project; and
(3) the estimated unit cost of each item, a summary of the total cost, and an estimate of the
total cost of completing the proposed drainage project that includes supervision and other costs.
    Subd. 6. Right-of-way acreage. The acreage must be shown that will be taken for ditch
right-of-way on each government lot, 40-acre tract, or fraction of a lot or tract under separate
ownership. The ditch right-of-way must include the area to be taken to maintain a grass strip
under section 103E.021.
    Subd. 7. Drain tile specifications. Specifications for drain tile must be given that comply
with the requirements of the American Society for Testing Materials standard specifications for
drain tile, except where the engineer requires tile of a special, higher quality for certain tile
depths or soil conditions.
    Subd. 8. Soil survey report. If required under section 103E.281, the report on the soil
survey must be included in the detailed survey report or submitted and filed separately before
the final hearing.
    Subd. 9. Recommendation for division of work. If construction of the proposed drainage
project would be more economical, the engineer may recommend:
(1) that the work be divided into sections and contracted separately;
(2) that the ditch and tile work or tile and labor on the project be contracted separately; or
(3) the time and manner for the work to be completed.
    Subd. 10. Other information on practicability and necessity of drainage project. Other
data and information to inform the drainage authority of the practicability and necessity of the
proposed drainage project must be made available including a comprehensive examination and
the recommendation by the engineer regarding the environmental and land use criteria in section
103E.015, subdivision 1.
    Subd. 11. Outlet in another state. If an outlet is only practical in an adjoining state, the
engineer shall describe the right-of-way needed and the cost of obtaining the right-of-way and
constructing the outlet.
    Subd. 12. Completion. The engineer shall prepare the detailed survey and complete the
detailed survey report, in duplicate, as specified in this section.
History: 1990 c 391 art 5 s 45
103E.291 FILING DETAILED SURVEY REPORT.
The engineer must file the detailed survey report with the auditor where the proceedings are
pending and the auditor must deliver a copy of the detailed survey report to the commissioner.
The engineer must also file copies of the detailed survey report with the auditors of any affected
counties.
History: 1990 c 391 art 5 s 46
103E.295 REVISION OF ENGINEER'S DETAILED SURVEY REPORT AFTER
ACCEPTANCE.
After the final acceptance of the proposed drainage project, the engineer shall revise the plan,
profiles, and designs of structures to show the drainage project as actually constructed on the
original tracings. The engineer shall file the revised detailed survey report with the auditor. The
auditor shall forward the original or a copy to the director as a permanent record.
History: 1990 c 391 art 5 s 47
103E.301 COMMISSIONER'S FINAL ADVISORY REPORT.
(a) The commissioner shall examine the detailed survey report and within 30 days of receipt
make a final advisory report to the drainage authority. The final advisory report must state
whether the commissioner:
(1) finds the detailed survey report is incomplete and not in accordance with the provisions
of this chapter, specifying the incomplete or nonconforming provisions;
(2) approves the detailed survey report as an acceptable plan to drain the property affected;
(3) does not approve the plan and recommendations for changes;
(4) finds the proposed drainage project is not of public benefit or utility under the
environmental and land use criteria in section 103E.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.
History: 1990 c 391 art 5 s 48
103E.305 VIEWERS' APPOINTMENT AND QUALIFICATION.
    Subdivision 1. Appointment. When the order for a detailed survey is made, the drainage
authority shall, by order, appoint viewers consisting of three disinterested residents of the state
qualified to assess benefits and damages. The drainage authority may establish qualifications
for viewers.
    Subd. 2. Auditor's order for first meeting. Within five days after the detailed survey
report is filed, the auditor shall, by order, designate the time and location for the first meeting
of the viewers and issue a copy to the viewers of the auditor's order and a certified copy of the
order appointing the viewers.
    Subd. 3. First meeting. At the first meeting and before beginning their duties, the viewers
shall subscribe to an oath to faithfully perform their duties. If an appointed viewer does not
qualify for any reason, the auditor shall designate another qualified person to take the disqualified
viewer's place.
History: 1990 c 391 art 5 s 49
103E.311 VIEWERS' DUTIES.
The viewers, with or without the engineer, shall determine the benefits and damages to all
property affected by the proposed drainage project and make a viewers' report.
History: 1990 c 391 art 5 s 50
103E.315 ASSESSMENT OF DRAINAGE BENEFITS AND DAMAGES.
    Subdivision 1. State land. Property owned by the state must have benefits and damages
reported in the same manner as taxable lands subject to the provisions relating to conservation
areas in section 103E.025.
    Subd. 2. Government property. The viewers shall report the benefits and damages to the
state, counties, and municipalities from the proposed drainage project. The property within the
jurisdiction of a municipality, whether owned by the municipality or by private parties, may be
assessed as benefits and damages to the municipality.
    Subd. 3. Public roads. If a public road or street is benefited or damaged, the state, county, or
political subdivision that is the governmental unit with the legal duty of maintaining the road or
street, must be assessed benefits or damages to the road or street, except that benefits and damages
for bridges and culverts must be assessed to the governmental unit that has the legal duty to
construct and maintain the bridge or culvert under section 103E.525.
    Subd. 4. Railway and other utilities. The viewers shall report the benefits and damages
to railways and other utilities, including benefits and damages to property used for railway or
other utility purposes.
    Subd. 5. Extent and basis of benefits. (a) The viewers shall determine the amount of
benefits to all property within the watershed, whether the property is benefited immediately by the
construction of the proposed drainage project or the proposed drainage project can become an
outlet for drainage, makes an outlet more accessible, or otherwise directly benefits the property.
The benefits may be based on:
(1) an increase in the current market value of property as a result of constructing the project;
(2) an increase in the potential for agricultural production as a result of constructing the
project; or
(3) an increased value of the property as a result of a potential different land use.
(b) Benefits and damages may be assessed only against the property benefited or damaged or
an easement interest in property for the exclusive use of the surface of the property.
    Subd. 6. Benefits for proposed drainage project as outlet. (a) If the proposed drainage
project furnishes an outlet to an existing drainage system and benefits the property drained by the
existing system, the viewers shall equitably determine and assess:
(1) the benefits of the proposed drainage project to each tract or lot drained by the existing
drainage system;
(2) a single amount as an outlet benefit to the existing drainage system; or
(3) benefits on a watershed acre basis.
(b) Assessments that conform with the provisions in this subdivision are valid. If a single
sum is assessed as an outlet benefit, the lien for the assessment must be prorated on all property
benefited by the existing drainage system in proportion to the benefits determined for the existing
drainage system.
(c) Within the watershed that drains to the area where a project is located, the viewers
may assess outlet benefits on:
(1) property that is responsible for increased sedimentation in downstream areas of the
watershed; and
(2) property that is responsible for increased drainage system maintenance or increased
drainage system capacity because the natural drainage on the property has been altered or
modified to accelerate the drainage of water from the property.
    Subd. 7. Benefits for project that increases drainage capacity. If part of a drainage project
increases drainage capacity and the increased capacity is necessary due to increased drainage in
the project watershed rather than increased drainage in a specific area, the viewers may assess
benefits on property in the project watershed on a pro rata basis.
    Subd. 8. Extent of damages. Damages to be paid may include:
(1) the fair market value of the property required for the channel of an open ditch and the
permanent grass strip under section 103E.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.
History: 1990 c 391 art 5 s 51
103E.321 VIEWERS' REPORT.
    Subdivision 1. Requirements. The viewers' report must show, in tabular form, for each lot,
40-acre tract, and fraction of a lot or tract under separate ownership that is benefited or damaged:
(1) a description of the lot or tract, under separate ownership, that is benefited or damaged;
(2) the names of the owners as they appear on the current tax records of the county and
their addresses;
(3) the number of acres in each tract or lot;
(4) the number and value of acres added to a tract or lot by the proposed drainage of public
waters;
(5) the damage, if any, to riparian rights;
(6) the damages paid for the permanent grass strip under section 103E.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 public waters work permit to
work in public waters under section 103G.245 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.
    Subd. 2. Benefits and damages statement. (a) The viewers' report must include a benefits
and damages statement that shows for each property owner how the benefits or damages for
similar tracts or lots were determined. For similar tracts or lots the report must describe:
(1) the existing land use, property value, and economic productivity;
(2) the potential land use, property value, and economic productivity after the drainage
project is constructed; and
(3) the benefits or damages from the proposed drainage project.
(b) The soil and water conservation districts and county assessors shall cooperate with
viewers to provide information required under paragraph (a).
    Subd. 3. Disagreement of viewers. If the viewers are unable to agree, each viewer shall
separately state findings on the disputed issue. A majority of the viewers may perform the
required duties under this chapter.
    Subd. 4. Filing. When the viewers complete their duties, they shall file the viewers' report
with the auditor of each affected county. A detailed statement must be filed with the viewers'
report showing the actual time the viewers were engaged and the costs incurred. The viewers shall
perform their duties and complete the viewers' report as soon as possible after their first meeting.
History: 1990 c 391 art 5 s 52
103E.323 PROPERTY OWNERS' REPORT.
    Subdivision 1. Report. Within 30 days after the viewers' report is filed, the auditor must
make a property owners' report from the information in the viewers' report showing for each
property owner benefited or damaged by the proposed drainage project:
(1) the name and address of the property owner;
(2) each lot or tract and its area that is benefited or damaged;
(3) the total number and value of acres added to a tract or lot by the proposed drainage of
public waters, wetlands, and other areas not currently being cultivated;
(4) the number of acres and amount of benefits being assessed for drainage of areas which
before the drainage benefits could be realized would require a public waters work permit to
work in public waters under section 103G.245 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 103E.321, subdivision 2,
paragraph (a), relating to the property owner.
    Subd. 2. Mailing. The auditor must mail a copy of the property owners' report to each owner
of property affected by the proposed drainage project, and may prepare and file an affidavit
of mailing.
History: 1990 c 391 art 5 s 53

FINAL HEARING

103E.325 FINAL HEARING NOTICE.
    Subdivision 1. Time. Promptly after the filing of the viewers' report and the commissioner's
final advisory report, the drainage authority after consulting with the auditor shall set a time and
location for the final hearing on the petition, the detailed survey report, and the viewers' report.
The hearing must be set 25 to 50 days after the date of the final hearing notice.
    Subd. 2. Notice. (a) The final hearing notice must state:
(1) that the petition is pending;
(2) that the detailed survey report is filed;
(3) that the viewers' report is filed;
(4) the time and place set for the final hearing;
(5) a brief description of the proposed drainage project and affected drainage system, giving
in general terms the starting point, terminus, and general course of the main ditch and branches;
(6) a description of property benefited and damaged, and the names of the owners of the
property; and
(7) the municipal and other corporations affected by the proposed drainage project as shown
by the detailed survey report and viewers' report.
(b) Names may be listed in a narrative form and property affected may be separately listed in
narrative form by governmental sections or otherwise.
(c) For a joint county proceeding, separate notice may be prepared for each county affected,
showing the portion of the proposed drainage project and the names and descriptions of affected
property in the county.
    Subd. 3. Method of notice. The auditor shall notify the drainage authority, auditors of
affected counties, and all interested persons of the time and location of the final hearing by
publication, posting, and mail. A printed copy of the final hearing notice for each affected county
must be posted at least three weeks before the date of the final hearing at the front door of the
courthouse in each county. Within one week after the first publication of the notice, the auditor
shall give notice by mail of the time and location of the final hearing to the commissioner, all
property owners, and others affected by the proposed drainage project and listed in the detailed
survey report and the viewers' report.
    Subd. 4. Defective notice. If the final hearing notice is not given or is not legally given, the
auditor shall properly publish, post, and mail the notice or provide the notice under the provisions
to cure defective notice in section 103E.035.
History: 1990 c 391 art 5 s 54
103E.331 JURISDICTION OF PROPERTY BY DRAINAGE AUTHORITY.
After the final hearing notice is given, the drainage authority has jurisdiction of all property
described in the detailed survey report and viewers' report, of the persons and municipalities
named in the reports, and of persons having an interest in a mortgage, lien, or encumbrance
against property described in the reports.
History: 1990 c 391 art 5 s 55
103E.335 PROCEEDINGS AT THE FINAL HEARING.
    Subdivision 1. Consideration of petition and reports. At the time and location for the final
hearing specified in the notice, or after the hearing adjourns, the drainage authority shall consider
the petition for the drainage project, with all matters pertaining to the detailed survey report, the
viewers' report, and the commissioner's final advisory report. The drainage authority shall hear
and consider the testimony presented by all interested parties. The engineer or the engineer's
assistant and at least one viewer shall be present. The director may appear and be heard. If the
director does not appear personally, the final advisory report shall be read during the hearing. The
final hearing may be adjourned and reconvened as is necessary.
    Subd. 2. Changes in drainage plan. If the drainage authority determines that the general
plan reported by the engineer may be improved by changes, or that the viewers have made an
inequitable assessment of benefits or damages to any property, the drainage authority may
amend the detailed survey report or the viewers' report, and make necessary and proper findings
in relation to the reports. The drainage authority may resubmit matters to the engineer or to
the viewers for immediate consideration. The engineer or viewers shall proceed promptly to
reconsider the resubmitted matters and shall make and file the amended findings and reports. The
amended reports are a part of the original reports.
    Subd. 3. Reexamination. If the drainage authority determines that property not included
in the notice should be included and assessed or that the engineer or viewers, or both, should
reexamine the proposed drainage project or the property benefited or damaged by the system, the
drainage authority may resubmit the reports to the engineer and viewers. If a report is resubmitted,
the final hearing may be continued as is necessary to make the reexamination and reexamination
report. If the reexamination report includes property not included in the original report, the
drainage authority may, by order, adjourn the hearing and direct the auditor to serve or publish,
post, and mail a final hearing notice with reference to all property not included in the previous
notice. The jurisdiction of the drainage authority continues in the property given proper notice,
and new or additional notice is not required for that property.
History: 1990 c 391 art 5 s 56
103E.341 DRAINAGE AUTHORITY FINAL ORDER.
    Subdivision 1. Dismissal of proceedings. The drainage authority must dismiss the
proceedings and petition, by order, if it determines that:
(1) the benefits of the proposed drainage project are less than the total cost, including
damages awarded;
(2) the proposed drainage project will not be of public benefit and utility; or
(3) the proposed drainage project is not practicable after considering the environmental and
land use criteria in section 103E.015, subdivision 1.
    Subd. 2. Establishment of proposed drainage project. (a) The drainage authority shall
establish, by order, a proposed drainage project if it determines that:
(1) the detailed survey report and viewers' report have been made and other proceedings
have been completed under this chapter;
(2) the reports made or amended are complete and correct;
(3) the damages and benefits have been properly determined;
(4) the estimated benefits are greater than the total estimated cost, including damages;
(5) the proposed drainage project will be of public utility and benefit, and will promote
the public health; and
(6) the proposed drainage project is practicable.
(b) The order must contain the drainage authority's findings, adopt and confirm the viewers'
report as made or amended, and establish the proposed drainage project as reported and amended.
History: 1990 c 391 art 5 s 57
103E.345 APPORTIONMENT OF COST FOR JOINT COUNTY DRAINAGE SYSTEMS.
For joint county proceedings, the auditor where the petition is filed shall file a certified copy
of the viewers' report with the auditor of each affected county within 20 days after the date of
the final order establishing the system. When the final order to establish the drainage project is
made, the drainage authority shall determine and order the percentage of the cost of the drainage
project to be paid by each affected county. The cost shall be in proportion to the benefits received,
unless there is a contrary reason. An auditor of an affected county may petition the drainage
authority after the final order is made to determine and order the percentage of costs to be paid by
the affected counties. The drainage authority shall hold a hearing five days after giving written
notice to the auditor of each affected county. After giving the notice to the auditors of the affected
counties, the drainage authority may, at any time that it is necessary, modify an order or make an
additional order to allocate the cost among the affected counties.
History: 1990 c 391 art 5 s 58

REDETERMINATION OF BENEFITS

103E.351 REDETERMINATION OF BENEFITS AND DAMAGES.
    Subdivision 1. Conditions to redetermine benefits and damages; appointment of
viewers. If the drainage authority determines that the original benefits or damages determined in
a drainage proceeding do not reflect reasonable present day land values or that the benefited or
damaged areas have changed, or if more than 50 percent of the owners of property benefited or
damaged by a drainage system petition for correction of an error that was made at the time of
the proceedings that established the drainage system, the drainage authority may appoint three
viewers to redetermine and report the benefits and damages and the benefited and damaged areas.
    Subd. 2. Hearing and procedure. (a) The redetermination of benefits and damages shall
proceed as provided for viewers and the viewers' report in sections 103E.311 to 103E.321.
(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 103E.325, 103E.335, and 103E.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 103E.091.
History: 1990 c 391 art 5 s 59

OUTLETS FOR DRAINAGE SYSTEMS

103E.401 USE OF DRAINAGE SYSTEM AS AN OUTLET.
    Subdivision 1. Commissioner must recognize drainage outlet proceedings when
purchasing wetlands. If the commissioner purchases wetlands under section 97A.145, the
commissioner must recognize that when a majority of landowners or owners of a majority
of the land in the watershed petition for a drainage outlet, the state should not interfere with
or unnecessarily delay the drainage proceedings if the proceedings are conducted according
to this chapter.
    Subd. 2. Express authority necessary. After the construction of a drainage project, a public
or private drainage system that drains property not assessed for benefits for the established
drainage system may not be constructed to use the established drainage system as an outlet
without obtaining express authority from the drainage authority having jurisdiction over the
drainage system proposed to be used as the outlet. This section is applicable to the construction
of a public or private drainage system that outlets water into an established drainage system
regardless of the actual physical connection.
    Subd. 3. Petition. A person seeking authority to use an established drainage system as an
outlet must petition the drainage authority. When the petition is filed, the drainage authority in
consultation with the auditor shall set a time and location for a hearing on the petition and shall
give notice by mail and notice by publication of the hearing. The auditor must be paid a fee of $5
plus 30 cents for each notice mailed in excess of ten.
    Subd. 4. Hearing. At the hearing the drainage authority shall consider the capacity of the
outlet drainage system. If express authority is given to use the drainage system as an outlet,
the drainage authority shall state, by order, the terms and conditions for use of the established
drainage system as an outlet and shall set the amount to be paid as an outlet fee. The order must
describe the property to be benefited by the drainage system and must state the amount of benefits
to the property for the outlet. The property benefited is liable for assessments levied after that
time in the drainage system, on the basis of the benefits as if the benefits had been determined in
the order establishing the drainage system.
    Subd. 5. Private drainage system may not be constructed without payment of outlet
fee. A private drainage system may not be constructed to use the established drainage system as
an outlet until the outlet fee, set by order, is paid by the petitioner to the county treasurer where
the petitioner's property is located.
    Subd. 6. Payment of outlet fee. The outlet fee for a proposed drainage project is a
part of the cost of the proposed drainage project and is to be paid by assessment against the
property benefited by the proposed drainage project, under section 103E.601, and credited to the
established drainage system account.
    Subd. 7. Unauthorized outlet into drainage system. (a) The drainage authority must notify
an owner of property where an unauthorized outlet into a drainage system is located and direct the
property owner to block the outlet or otherwise make the outlet ineffective by a specified time.
The outlet must be blocked and remain ineffective until:
(1) an outlet fee is paid, which is determined by the drainage authority based on the benefits
received by the property for the period the unauthorized outlet was operational; and
(2) the drainage authority approves a petition for the outlet and establishes the outlet fee.
(b) If a property owner does not block or make the outlet ineffective after being notified,
the drainage authority must issue an order to have the work performed to bring the outlet
into compliance. After the work is completed, the drainage authority must send a statement
to the auditor of the county where the property is located and to the property owner where
the unauthorized outlet is located, containing the expenses incurred to bring the outlet into
compliance and the outlet fee based on the benefits received by the property during the period the
unauthorized outlet was operational.
    Subd. 8. Collection of unauthorized outlet compliance expenses. (a) The amount of the
expenses and outlet fee is a lien in favor of the drainage authority against the property where the
unauthorized outlet is located. The auditor must certify the expenses and outlet fee and enter the
amount in the same manner as other drainage liens on the tax list for the following year. The
amount must be collected in the same manner as real estate taxes for the property. The provisions
of law relating to the collection of real estate taxes shall be used to enforce payment of amounts
due under this section. The auditor must include a notice of collection of unauthorized outlet
compliance expenses with the tax statement.
(b) The amounts collected under this subdivision must be deposited in the drainage system
account.
History: 1990 c 391 art 5 s 60
103E.405 OUTLETS IN ADJOINING STATES.
In any drainage proceeding, at the hearing on the detailed survey report and viewers' report,
if the drainage authority determines that a proper outlet for the drainage system does not exist
except through property in an adjoining state, the drainage authority may adjourn the hearing.
If the hearing is adjourned the drainage authority shall require the auditor or, for a joint county
drainage system, the auditors of affected counties to procure an option to acquire the needed
right-of-way at an expense not exceeding the estimated cost specified in the detailed survey
report. The order establishing the drainage project may not be made until the option is procured.
If the option is procured and the drainage project established, the option shall be exercised and the
cost of the right-of-way shall be paid as a part of the cost of the drainage project.
History: 1990 c 391 art 5 s 61
103E.411 DRAINAGE SYSTEM AS OUTLET FOR MUNICIPALITY.
    Subdivision 1. Petition. A municipality may use a drainage system as an outlet for its
municipal drainage system or the overflow from the system under the provisions of this section.
The municipality must petition to the drainage authority to use the drainage system. The petition
must:
(1) show the necessity for the use of the drainage system as an outlet;
(2) show that the use of the drainage system will be of public benefit and utility and promote
the public health;
(3) be accompanied by a plat showing the location of the drainage system and the location of
the municipal drainage system; and
(4) be accompanied by specifications showing the plan of connection from the municipal
drainage system to the drainage system.
    Subd. 2. Approval by Pollution Control Agency. The plan for connecting the municipal
drainage system to the drainage system must be approved by the Pollution Control Agency.
    Subd. 3. Filing; notice. (a) If proceedings to establish the drainage project to be used as an
outlet are pending, the petition must be filed with the auditor. The municipal drainage system
petition must be presented to the drainage authority at the final hearing to consider the detailed
survey report and viewers' report. Notice of the municipal drainage system petition must be
included in the final hearing notice.
(b) If the drainage system to be used as an outlet is established, the municipal drainage
system petition must be filed with the auditor. When the petition is filed, the drainage authority
in consultation with the auditor shall, by order, set a time and place for hearing on the petition.
Notice of the hearing must be given by publication and by mailed notice to the auditor of each
affected county.
    Subd. 4. Hearing and order. (a) At the hearing the drainage authority may receive all
evidence of interested parties for or against the granting of the petition. The drainage authority,
by order, may authorize the municipality to use the drainage system as an outlet, subject to the
conditions that are necessary and proper to protect the rights of the parties and safeguard the
interests of the general public, if the drainage authority determines:
(1) that a necessity exists for the use of the drainage system as an outlet for the municipal
drainage system or the overflow from the system;
(2) that use of the drainage system will be of public utility and promote the public health; and
(3) that the proposed connection conforms to the requirements of the Pollution Control
Agency and provides for the construction and use of proper disposal works.
(b) The drainage authority must, by order, make the municipality a party to the drainage
proceedings and determine the benefits from using the drainage project or system as an outlet.
    Subd. 5. Benefits and assessments if drainage system is established. If the drainage
system is established, the drainage authority must determine the amount the municipality must
pay for the privilege of using the drainage system as an outlet. The amount must be paid to
the affected counties and credited to the account of the drainage system used as an outlet. The
municipality is liable for all subsequent liens and assessments for the repair and maintenance
of the drainage system in proportion to the benefits, as though the benefits were determined in
the order establishing the drainage system.
History: 1990 c 391 art 5 s 62

CONSTRUCTION OF DRAINAGE PROJECT

103E.501 CONTRACT AND BOND.
    Subdivision 1. Preparation. The county attorney, the engineer, and the attorney for the
petitioners shall prepare the contract and bond. The contract and bond must include the provisions
required by this chapter and section 574.26 for bonds given by contractors for public works and
must be conditioned as provided by section 574.26 for the better security of the contracting
counties and parties performing labor and furnishing material in performance of the contract. The
prepared contract and bond must be attached and provided to the contractor for execution.
    Subd. 2. Contractor's bond. The contractor shall file a bond with the auditor for an amount
not less than 75 percent of the contract price of the work. The bond must have adequate surety
and be approved by the auditor. The bond must provide that the surety for the bond is liable for all
damages resulting from a failure to perform work under the contract, whether the work is resold
or not, and that any person or political subdivision showing damages from the failure to perform
work under the contract may maintain an action against the bond in their own names. Actions may
be successive in favor of all persons injured, but the aggregate liability of the surety for all the
damages may not exceed the amount of the bond. The surety is liable for the tile work guaranteed
by the contractor. The contractor is considered a public officer and the bond an official bond
within the meaning of section 574.24 construing the official bonds of public officers as security to
all persons and providing for actions on the bonds by a party that is damaged.
    Subd. 3. Contract. The contract must contain a specific description of the work to be done,
either expressly or by reference to the plans and specifications, and must provide that the work
must be done and completed as provided in the plans and specifications and subject to the
inspection and approval of the engineer. The contract must provide that time is of the essence of
the contract, and that if there is a failure to perform the work according to the terms of the contract
within the time given in the original contract or as extended, the contractors shall forfeit and pay
the affected counties an amount stated in the contract as liquidated damages. The amount must be
fixed by the auditor for each day that the failure of performance continues.
    Subd. 4. Contract provisions for changes during construction. The contract must give the
engineer the right, with the consent of the drainage authority, to modify the detailed survey report,
plans, and specifications as the work proceeds and as circumstances require. The contract must
provide that the increased cost resulting from the changes will be paid by the drainage authority to
the contractor at a rate not greater than the amount for similar work in the contract. A change may
not be made that will substantially impair the usefulness of any part of the drainage project or
system, substantially alter its original character, or increase its total cost by more than ten percent
of the total original contract price. A change may not be made that will cause the cost to exceed
the total estimated benefits found by the drainage authority or that will cause any detrimental
effects to the public interest under section 103E.015, subdivision 1.
    Subd. 5. Contract with federal unit. If any portion of the work is to be done by the United
States or an agency of the United States, a bond or contract is not necessary for that portion of the
work, except that a contract must be made if the United States or its agencies require a contract
with the local governmental units. The contract must contain the terms, conditions, provisions,
and guaranties required by the United States or its agencies to proceed with the work.
    Subd. 6. Guaranty of tile work. If tile is used to construct any part of the drainage project, a
majority of the persons affected may file a written request with the auditor to contract the tile
work separately. The request must be filed before advertising for the sale of the work has begun.
If the request is properly made, the tile work must be contracted separately. The contractor must
guarantee the tile work under the contract for three years after its completion against any fault or
negligence on the part of the contractor. The advertisement for bids must include this requirement.
    Subd. 7. Modification of contract by agreement. This chapter does not prevent the persons
with property affected by the construction of a drainage project from uniting in a written
agreement with the contractor and the surety of the contractor's bond to modify the contract as to
the manner or time when any portion of the drainage project is constructed, if the modification is
recommended, in writing, by the engineer and approved by the drainage authority.
History: 1990 c 391 art 5 s 63
103E.505 AWARDING THE CONSTRUCTION CONTRACT.
    Subdivision 1. Auditors and drainage authority to proceed. Thirty days after the order
establishing a drainage project is filed, the auditor and the drainage authority or, for a joint county
drainage project, a majority of the auditors of the affected counties shall proceed to award the
contract to construct the drainage project.
    Subd. 2. Pending appeal of benefits and damages. If an appeal regarding the determination
of benefits and damages is made within 30 days after the order establishing the drainage project
has been filed, a contract may not be awarded until the appeal has been determined, unless the
drainage authority orders the contract awarded. The auditor of an affected county or an interested
person may request the drainage authority to make the order. If the request is not made by an
affected auditor, the auditors of affected counties must be given notice five days before the
hearing on the request.
    Subd. 3. Notice of contract awarding. The auditor of an affected county shall give notice of
the awarding of the contract by publication in a newspaper in the county. The notice must state
the time and location for awarding the contract. For a joint county drainage project the auditors
shall award the contract at the office of the auditor where the proceedings are pending. If the
estimated cost of construction is more than $3,000, the auditor must also place a notice in a
drainage construction trade newspaper. The trade newspaper notice must state:
(1) the time and location for awarding the contract;
(2) the approximate amount of work and its estimated cost;
(3) that bids may be for the work as one job, or in sections, or separately, for bridges, ditches
and open work, tile, or tile construction work, if required or advisable;
(4) that each bid must be accompanied by a certified check or a bond furnished by an
approved surety corporation payable to the auditors of affected counties for ten percent of the
bid, as security that the bidder will enter into a contract and give a bond as required by section
103E.501; and
(5) that the drainage authority reserves the right to reject any and all bids.
    Subd. 4. Engineer shall attend awarding of contract. The engineer shall attend the meeting
to award the contract. A bid may not be accepted without the engineer's approval of the bidder's
compliance with plans and specifications.
    Subd. 5. How contract may be awarded. The contract may be awarded in one job, in
sections, or separately for labor and material and must be let to the lowest responsible bidder.
    Subd. 6. Bids exceeding 130 percent of estimated cost not accepted. Bids that in the
aggregate exceed the total estimated cost of construction by more than 30 percent may not be
accepted.
    Subd. 7. Affected counties contract through auditor. The chair of the drainage authority
and the auditor of each affected county shall contract, in the names of their respective counties, to
construct the drainage project in the time and manner and according to the plans and specifications
and the contract provisions in this chapter.
    Subd. 8. Work done by federal government. If any of the drainage work is to be done by
the United States or its agencies, a notice of awarding that contract does not need to be published
and a contract for that construction is not necessary. Affected municipalities may contract or
arrange with the United States or its agencies for cooperation or assistance in constructing,
maintaining, and operating the drainage project and system, for control of waters in the district,
or for making a survey and investigation or reports on the drainage project or system. The
municipalities may provide required guaranty and protection to the United States or its agencies.
History: 1990 c 391 art 5 s 64
103E.511 PROCEDURE IF CONTRACT IS NOT AWARDED DUE TO BIDS OR COSTS.
    Subdivision 1. Conditions to use procedure in this section. The procedure in this section
may be used if, after a drainage system is established:
(1) the only bids received are for more than 30 percent in excess of the engineer's estimated
cost, or in excess of the benefits, less damages and other costs; or
(2) a contract is awarded, but due to unavoidable delays not caused by the contractor, the
contract cannot be completed for an amount equal to or less than the benefits, less damages
and other costs.
    Subd. 2. Petition after cost estimate error or change to lower cost. A person interested in
the drainage project may petition the drainage authority if the person determines that the engineer
made an error in the estimate of the drainage project cost or that the plans and specifications could
be changed in a manner materially affecting the cost of the drainage system without interfering
with efficiency. The petition must state the person's determinations and request that the detailed
survey report and viewers' report be referred back to the engineer and to the viewers for additional
consideration.
    Subd. 3. Petition after excessive cost due to inflation. (a) A person interested in the
drainage project may petition the drainage authority for an order to reconsider the detailed survey
report and viewers' report if the person determines:
(1) that bids were received only for a price more than 30 percent in excess of the detailed
survey report estimate because inflation increased the construction cost between the time of the
detailed survey cost estimate and the time of awarding the contract; or
(2) that after the contract was awarded there was unavoidable delay not caused by the
contractor, and between the time of awarding the contract and completion of construction inflation
increased construction costs resulting in the contract not being completed for an amount equal to
or less than the assessed benefits.
(b) The person may request in the petition that the drainage authority reconsider the original
cost estimate in the detailed survey report and viewers' report and adjust the cost estimate
consistent with the increased construction cost.
    Subd. 4. Hearing ordered after receipt of petition. After receiving a petition, the drainage
authority shall order a hearing. The order must designate the time and place of the hearing and
direct the auditor to give notice by publication.
    Subd. 5. Hearing on cost petition. (a) At the hearing the drainage authority shall consider
the petition and hear all interested parties.
(b) The drainage authority may, by order, authorize the engineer to amend the detailed survey
report, if the drainage authority determines that:
(1) the detailed survey report cost estimate was erroneous and should be corrected;
(2) the plans and specifications could be changed in a manner materially affecting the cost of
the drainage project without interfering with efficiency; and
(3) with the correction or modification a contract could be awarded within the 30 percent
limitation and equal to or less than benefits.
(c) If the drainage authority determines that the amended changes affect the amount of
benefits or damages to any property or that the benefits should be reexamined because of inflated
land values or inflated construction costs, it shall refer the viewers' report to the viewers to
reexamine the benefits and damages.
(d) The drainage authority may, by order, direct the engineer and viewers to amend their
detailed survey report and viewers' report to consider the inflationary cost increases if the drainage
authority determines that:
(1) bids were not received; or
(2) because of inflationary construction cost increases, construction under the awarded
contract cannot be completed for 30 percent or less over the detailed survey cost estimate or in
excess of the benefits, less damages and other costs.
(e) The drainage authority may continue the hearing to give the engineer or viewers
additional time to amend the reports. The jurisdiction of the drainage authority continues at
the adjourned hearing.
(f) The drainage authority has full authority to consider the amended reports and make
findings and orders. A party may appeal to the district court under section 103E.091, subdivision 1.
History: 1990 c 391 art 5 s 65
103E.515 DAMAGES, PAYMENT.
The board of each county where the damaged property is located must order the awarded
damages to be paid, less any assessment against the property, before the property is entered
for construction of the drainage project. If a county or a municipality that is awarded damages
requests it, the assessment may not be deducted. If there is an appeal, the damages may not be
paid until the final determination. If it is not clear who is entitled to the damages, the board may
pay the damages to the court administrator of the district court of the county. The court shall direct
the court administrator, by order, to pay the parties entitled to the damages.
History: 1990 c 391 art 5 s 66
103E.521 SUPERVISION OF CONSTRUCTION.
The drainage authority shall require the engineer to supervise and inspect the construction
under contract. The drainage authority shall cause the contracts under this chapter to be performed
properly.
History: 1990 c 391 art 5 s 67
103E.525 CONSTRUCTION AND MAINTENANCE OF BRIDGES AND CULVERTS.
    Subdivision 1. Hydraulic capacity. A public or private bridge or culvert may not be
constructed or maintained across or in a drainage system with less hydraulic capacity than
specified in the detailed survey report, except with the written approval of the director of the
division of waters. If the detailed survey report does not specify the hydraulic capacity, a public or
private bridge or culvert in or across a drainage system ditch may not be constructed without the
director's approval of the hydraulic capacity.
    Subd. 2. Road authority responsible for construction. Bridges and culverts on public
roads required by the construction or improvement of a drainage project or system must be
constructed and maintained by the road authority responsible for keeping the road in repair,
except as provided in this section.
    Subd. 3. Notice; charging cost. The auditor shall notify the state and each railroad company,
corporation, or political subdivision that they are to construct a required bridge or culvert on a
road or right-of-way under their jurisdiction, within a reasonable time as stated in the notice. If
the work is not done within the prescribed time, the drainage authority may order the bridge or
culvert constructed as part of the drainage project construction. The cost must be deducted from
the damages awarded to the corporation or collected from it as an assessment for benefits. If the
detailed survey report or viewers' report shows that the construction of the bridge or culvert is
necessary, the drainage authority may, by order, retain an amount to secure the construction of the
bridge or culvert from amounts to be paid to a railroad, corporation, or political subdivision.
    Subd. 4. Construction on line between two cities paid equally. The costs of constructing a
bridge or culvert that is required by construction of a drainage project on a public road that is not
a state trunk highway on the line between two statutory or home rule charter cities, whether in the
same county or not, must be paid jointly, in equal shares, by the cities. The cities shall pay jointly,
in equal shares, for the cost of maintaining the bridge or culvert.
    Subd. 5. Construction on town and county lines. The cost of constructing and maintaining
bridges and culverts on a town or county road across a drainage system ditch constructed along
the boundary line between towns or counties, with excavated material deposited on the boundary
line or within 33 feet of the line, must be paid equally by the town or county where the bridge or
culvert is located and the other town or county adjoining the boundary.
History: 1990 c 391 art 5 s 68
103E.526 CONSTRUCTION OF ROAD INSTEAD OF BRIDGE OR CULVERT.
If the drainage authority finds that constructing a private road would be more cost-effective
or practical than constructing a bridge or culvert, the drainage authority may order that a private
road be constructed. The private road must be constructed and maintained in the same manner as
a bridge or culvert. The private road must be constructed in a manner suitable for farm vehicles
but may not have a right-of-way wider than 33 feet. The drainage authority has jurisdiction over
the land required for the private road and the road is part of the drainage system.
History: 1990 c 391 art 5 s 69
103E.53 RULES TO STANDARDIZE FORMS.
The director may adopt rules to standardize the forms and sizes of maps, plats, drawings,
and specifications in drainage proceedings. The director must require the permanent grass strips
acquired under section 103E.021 to be shown on the maps and maintain an inventory of all
permanent grass strips acquired by drainage authorities.
History: 1990 c 391 art 5 s 70
103E.531 INSPECTION OF DRAINAGE CONSTRUCTION AND PARTIAL PAYMENTS.
    Subdivision 1. Inspection and report. The engineer shall inspect and require the work as
it is being completed to be done in accordance with the plans, specifications, and contract for
construction. Each month during the work, the engineer shall report to the drainage authority,
in writing, showing the work completed since the previous report and all materials furnished
under the contract.
    Subd. 2. Preliminary certificate. The engineer shall issue with the monthly report a
preliminary certificate for work done and approved or materials delivered. The certificate must
contain the station numbers of the work covered by the certificate and the total value of all work
done and the materials furnished according to the contract. For each ditch section, the certificate
must show the actual volume, in cubic yards, of the excavation completed. For joint county
drainage systems the certificate must also show the percentage of the total value to be paid by
each county in the proportion fixed by the drainage authority order. Each certificate must show
that a loss will not occur as a result of a partial payment. A duplicate of the certificate must be
delivered to the auditor of each affected county.
    Subd. 3. Partial payment. The affected counties must pay the contractor, based on the
certificate, 90 percent of the total value of work done and approved and 90 percent of the total
value of material furnished and delivered. The materials may only be delivered as required in the
course of construction and authorized by the engineer.
History: 1990 c 391 art 5 s 71
103E.535 PARTIAL PAYMENT OF RETAINED CONTRACT AMOUNTS.
    Subdivision 1. Petition for partial payment of retained value. If a single contract exceeds
$50,000, and the contract, exclusive of materials furnished and not installed, is one-half or more
complete and the contractor is not in default, the contractor may file a verified petition with the
auditor stating these facts and requesting that an order be made to pay 40 percent of the retained
value of work and material.
    Subd. 2. Notice of hearing. When the petition is filed, the auditor shall set a time and
location for a hearing on the petition before the drainage authority. At least five days before the
date of hearing, the auditor shall give notice by mail of the date and location of hearing to the
engineer, the attorney for the petitioners, the surety of the contractor's bond, and auditors of
the affected counties.
    Subd. 3. Hearing. At the hearing the drainage authority shall hear all parties interested. If the
drainage authority determines that the facts in the petition are correct, the work has been performed
in a satisfactory manner, and a portion of the retained percentage may be released without
endangering the interests of affected counties, the drainage authority shall state the findings and
may order not more than 40 percent of the retained value of work and material to be paid.
History: 1990 c 391 art 5 s 72
103E.541 EXTENSION OF TIME ON CONTRACTS.
The auditors of affected counties may extend the time for the performance of a contract as
provided in this section. The contractor may apply, in writing, for an extension of the contract.
Notice of the application must be given to: (1) the engineer and the attorney for the petitioners;
and (2) for a joint county drainage project, to the auditors of the affected counties. The auditors
may grant an extension if sufficient reasons are shown. The extension does not affect a claim for
liquidated damages that may arise after the original time expires and before an extension or a
claim that may arise after the time for the extension expires.
History: 1990 c 391 art 5 s 73
103E.545 REDUCTION OF CONTRACTOR'S BOND.
    Subdivision 1. Application to drainage authority. The contractor, at the end of each
season's work and before the contract is completed, may make a verified application to the
drainage authority to reduce the contractor's bond and file the application with the auditor. The
application must state:
(1) the work certified as completed by the engineer;
(2) the value of the certified work;
(3) the amount of money received by the contractor and the amount retained by the drainage
authority;
(4) the amount unpaid by the contractor for labor or material furnished on the contract; and
(5) a request for an order to reduce the amount of the contractor's bond.
The application must be filed with the auditor.
    Subd. 2. Notice of hearing. When an application is filed, the auditor, by order, shall set the
time and location for a hearing on the application. Ten days before the hearing, notice of the
hearing must be published in each affected county and notice by mail given to the engineer, the
attorney for the petitioners, and the auditor of each affected county. The contractor must pay the
cost of publishing the hearing notice.
    Subd. 3. Hearing; reduction of bond. The drainage authority may, by order, reduce the
contractor's bond if it determines that the contractor is not in default and that a loss will not result
from reducing the bond. The bond may be reduced to an amount sufficient to protect the affected
counties from loss and damage, but the reduction:
(1) may not be more than 35 percent of the amount already paid to the contractor;
(2) may not affect the remaining amount of the bond;
(3) does not affect liability incurred on the bond before the reduction; and
(4) does not affect a provision for a three-year guaranty of tile work.
History: 1990 c 391 art 5 s 74
103E.551 CONTRACTOR'S DEFAULT.
    Subdivision 1. Notice. If a contractor defaults in the performance of the contract, the auditor
shall mail a notice of the default to the contractor, the surety of the contractor's bond, the engineer,
and the auditors of the affected counties. The notice must specify the default and state that if
the default is not promptly removed and the contract completed, the unfinished portion of the
contract will be awarded to another contractor.
    Subd. 2. Completion of contract by surety. If the surety of the contractor's bond promptly
proceeds with the completion of the contract, the affected auditors may grant an extension of
time. If the contract is completed by the surety, the balance due on the contract must be paid to the
surety, less damages incurred by the affected counties from the default.
    Subd. 3. Awarding of contract; recovery on bond. If the surety of the contractor's bond
does not undertake the completion of the contract or does not complete the contract within the
time specified or extended, auditors of the affected counties shall advertise for bids to complete
the contract in the manner provided in the original awarding of contracts. The drainage authority
may recover the increased amounts paid to a subsequent contractor after reselling the work, and
damages incurred by affected counties, from the first contractor's bond.
History: 1990 c 391 art 5 s 75
103E.555 ACCEPTANCE OF CONTRACT.
    Subdivision 1. Engineer's report and notice. When a contract is completed, the engineer
shall make a report to the drainage authority showing the contract price, the amount paid on
certificates, the unpaid balance, and the work that is completed under the contract. When the report
is filed, the auditor shall set a time and location for a hearing on the report. The auditor shall give
notice of the hearing by publication or notice by mail at least ten days before the hearing to the
owners of affected property. The notice must state that the report is filed, the time and location for
the hearing, and that a party objecting to the acceptance of the contract may appear and be heard.
    Subd. 2. Hearing. At the hearing the drainage authority may, by order, direct payment of the
balance due if it determines that the contract has been completed in accordance with the plans
and specifications. If good cause is shown, the drainage authority may waive any part of the
liquidated damages accruing under the contract. When the order is filed, the auditor shall draw
a warrant on the treasurer of the county for the balance due on the contract. For a joint county
drainage project or system the auditor shall make an order to the auditors of the affected counties
to pay for their proportionate shares of the balance due on the contract. After receiving the order,
the auditor of each affected county shall draw a warrant on the treasurer of the county for the
amount specified in the order.
History: 1990 c 391 art 5 s 76

FUNDING, COLLECTION, AND

PAYMENT OF DRAINAGE SYSTEM COSTS

103E.601 DRAINAGE LIEN STATEMENT.
    Subdivision 1. Determination of property liability. When the contract for the construction
of a drainage project is awarded, the auditor of an affected county shall make a statement showing
the total cost of the drainage project with the estimated cost of all items required to complete the
work. The cost must be prorated to each tract of property affected in direct proportion to the
benefits. The cost, less any damages, is the amount of liability for each tract for the drainage
project. The property liability must be shown in the tabular statement as provided in subdivision
2, opposite the property owner's name and description of each tract of property. The amount of
liability on a tract of property for establishment and construction of a drainage project may not
exceed the benefits determined in the proceedings that accrue to the tract.
    Subd. 2. Drainage lien statement. The auditor of each affected county shall make a lien
statement in tabular form showing:
(1) the names of the property owners, corporate entities, or political subdivisions of the
county benefited or damaged by the construction of the drainage project in the viewers' report as
approved by the final order for establishment;
(2) the description of the property in the viewers' report, and the total number of acres in
each tract according to the county tax lists;
(3) the number of acres benefited or damaged in each tract shown in the viewers' report;
(4) the amount of benefits and damages to each tract of property as stated in the viewers'
report and confirmed by the final order that established the drainage project unless the order is
appealed and a different amount is set; and
(5) the amount each tract of property will be liable for and must pay to the county for the
establishment and construction of the drainage project.
    Subd. 3. Supplemental drainage lien statement. If any items of the cost of the drainage
project have been omitted from the original drainage lien statement, a supplemental drainage lien
statement with the omitted items must be made and recorded in the same manner provided for
a drainage lien statement. The total amount of the original drainage lien and any supplemental
drainage liens may not exceed the benefits.
    Subd. 4. Recording drainage lien statement. The lien against property in the drainage
lien statement and supplemental drainage lien statements must be certified by the auditor and
recorded on each tract by the county recorder of the county where the tract is located. The county
recorder's fees for recording must be paid if allowed by the board. The drainage lien statement
and any supplemental drainage lien statements, after recording, must be returned and preserved
by the auditor.
History: 1990 c 391 art 5 s 77
103E.605 EFFECT OF FILED DRAINAGE LIEN.
The amount recorded from the drainage lien statement and supplemental drainage lien
statement that each tract of property will be liable for, and the interest allowed on that amount, is
a drainage lien on the property. The drainage lien is a first and paramount lien until fully paid,
and has priority over all mortgages, charges, encumbrances, and other liens, unless the board
subordinates the drainage lien to liens of record. The recording of the drainage lien, drainage lien
statement, or a supplemental drainage lien statement is notice to all parties of the existence
of the drainage lien.
History: 1990 c 391 art 5 s 78
103E.611 PAYMENT OF DRAINAGE LIENS AND INTEREST.
    Subdivision 1. Payment of drainage lien principal. (a) Drainage liens against property
benefited under this chapter are payable to the treasurer of the county in 20 or less equal annual
installments. The first installment of the principal is due on or before November 1 after the
drainage lien statement is recorded, and each subsequent installment is due on or before
November 1 of each year afterwards until the principal is paid.
(b) The drainage authority may, by order, direct the drainage lien to be paid by 1/15 of the
principal on or before five years from November 1 after the lien statement is recorded, and 1/15
on or before November 1 of each year afterwards until the principal is paid.
(c) The drainage authority may order that the drainage lien must be paid by one or two
installments, notwithstanding paragraphs (a) and (b), if the principal amount of a lien against a lot
or tract of property or against a county or municipality is less than $50.
    Subd. 2. Interest. (a) Interest is an additional drainage lien on all property until paid. The
interest rate on the drainage lien principal from the date the drainage lien statement is recorded
must be set by the board but may not exceed the rate determined by the state court administrator
for judgments under section 549.09.
(b) Before the tax lists for the year are given to the county treasurer, the auditor shall
compute the interest on the unpaid balance of the drainage lien at the rate set by the board. The
amount of interest must be computed on the entire unpaid principal from the date the drainage
lien was recorded to August 15 of the next calendar year, and afterwards from August 15 to
August 15 of each year.
(c) Interest is due and payable after November 1 of each year the drainage lien principal or
interest is due and unpaid.
    Subd. 3. Collection of payments. Interest and any installment due must be entered on the
tax lists for the year. The installment and interest must be collected in the same manner as real
estate taxes for that year by collecting one-half of the total of the installment and interest with
and as a part of the real estate taxes.
    Subd. 4. Prepayment of interest. Interest may be paid at any time, computed to the date of
payment, except that after the interest is entered on the tax lists for the year, it is due as entered,
without a reduction for prepayment.
    Subd. 5. Payment of drainage liens with bonds. The board may direct the county treasurer
to accept any outstanding bond that is a legal obligation of the county under this chapter issued on
account of a drainage lien in payment of drainage liens under the provisions of this chapter. The
bonds must be accepted at their par value plus accrued interest.
    Subd. 6. Drainage lien record. The auditor shall keep a drainage lien record for each
drainage project and system showing the amount of the drainage lien remaining unpaid against
each tract of property.
    Subd. 7. Collection and enforcement of drainage liens. The enforcement, collection,
penalty, and interest provisions relating to real estate taxes apply to the payment of drainage liens.
History: 1990 c 391 art 5 s 79; 1996 c 471 art 3 s 1
103E.615 ENFORCEMENT OF ASSESSMENTS.
    Subdivision 1. Municipalities. Assessments filed for benefits to a municipality are a liability
of the municipality and are due and payable with interest in installments on November 1 of
each year as provided in section 103E.611. If the installments and interest are not paid on or
before November 1, the amount due with interest added as provided in section 103E.611 must be
extended by the county auditor against all property in the municipality that is liable to taxation.
A levy must be made and the amount due must be paid and collected in the same manner and
time as other taxes.
    Subd. 2. County or state-aid road. If a public road benefited is a county or state-aid road,
the assessment filed is against the county and must be paid out of the road and bridge fund of
the county.
    Subd. 3. State trunk highway. An assessment against the state for benefits to trunk
highways is chargeable to and payable out of the trunk highway fund. The commissioner of
transportation shall pay assessments from the trunk highway fund after receipt of a certified copy
of the assessment against the state for benefits to a trunk highway.
    Subd. 4. Assessment for vacated town roads. If a town is assessed for benefits to a town
road in a drainage project proceeding under this chapter and the town road is later vacated by the
town board under section 164.07, the town board may petition the drainage authority to cancel the
assessment. The drainage authority may cancel the assessment if it finds that the town road for
which benefits are assessed has been vacated under section 164.07.
    Subd. 5. State property. State property, including rural credit property, is assessable for
benefits received. The assessment must be paid by the state from funds appropriated and available
for drainage assessments after the state officer having jurisdiction over the assessed property
certifies the assessment to the commissioner of finance.
    Subd. 6.[Repealed, 1994 c 561 s 28]
    Subd. 7. Railroad and utility property. Property owned by a railroad or other utility
corporation benefited by a drainage project is liable for the assessments of benefits on the
property as other taxable property. From the date the drainage lien is recorded, the amount of the
assessment with interest is a lien against all property of the corporation within the county. Upon
default the assessment may be collected by civil action or the drainage lien may be foreclosed
by action in the same manner as provided by law for the foreclosure of mortgage liens. The
county where the drainage lien is filed has the right of action against the corporation to enforce
and collect the assessment.
History: 1990 c 391 art 5 s 80
103E.621 SATISFACTION OF LIENS.
When a drainage lien with the accumulated interest is fully paid, the auditor shall issue a
certificate of payment with the auditor's official seal and record the certificate with the county
recorder. The recorded certificate releases and discharges the drainage lien. The auditor may
collect 25 cents for each description in the certificate. The auditor's fee and the fee of the county
recorder must be paid from the account for the drainage system.
History: 1990 c 391 art 5 s 81
103E.625 SUBDIVISION BY PLATTING MUST HAVE LIENS APPORTIONED.
A tract of property with a drainage lien that is subdivided by platting is not complete and
the plat may not be recorded until the drainage liens against the tracts are apportioned and the
apportionment is filed with the county recorder of the county where the tract is located.
History: 1990 c 391 art 5 s 82
103E.631 APPORTIONMENT OF LIENS.
    Subdivision 1. Petition. A person who has an interest in property that has a drainage lien
attached to it may petition the drainage authority to apportion the lien among specified portions of
the tract if the payments of principal and interest on the property are not in default.
    Subd. 2. Notice. When the petition is filed, the drainage authority shall, by order, set a time
and location for a hearing on the petition. The drainage authority shall give notice of the hearing
by personal service to the auditor, the occupants of the tract, and all parties having an interest in
the tract as shown by the records in the county recorder's office. The service must be made at least
ten days before the hearing. If personal service cannot be made to all interested persons, notice
may be given by publication. The petitioner shall pay the costs for service or publication.
    Subd. 3. Hearing. The drainage authority shall hear all related evidence and, by order,
apportion the lien. A certified copy of the order must be recorded in the county recorder's office
and filed with the auditor.
History: 1990 c 391 art 5 s 83
103E.635 DRAINAGE BOND ISSUES.
    Subdivision 1. Authority. After the contract for the construction of a drainage project
is awarded, the board of an affected county may issue the bonds of the county in an amount
necessary to pay the cost of establishing and constructing the drainage project.
    Subd. 2. Single issue for two or more drainage systems. The board may include two or
more drainage systems in a single drainage bond issue. The total amount of the drainage bond
issue may not exceed the total cost, including expenses, to be assessed to pay for the drainage
systems. The total cost to be assessed must be determined or estimated by the board when the
drainage bonds are issued.
    Subd. 3. Security and source of payment. The drainage bonds must be issued in accordance
with chapter 475 and must pledge the full faith, credit, and resources of the county for the prompt
payment of the principal and interest of the drainage bonds. The drainage bonds are primarily
payable from the funds of the drainage systems financed by the bonds or from the common
drainage bond redemption fund of the county. The common drainage bond redemption fund
may be created by resolution of the county board as a debt redemption fund for the payment
of drainage bonds issued under this chapter.
    Subd. 4. Payment period and interest on drainage bonds. (a) The board shall determine,
by resolution:
(1) the time of payment for the drainage bonds, not to exceed 23 years from their date of issue;
(2) the rates of interest for the drainage bonds, with the net average rate of interest over the
term of the bonds not to exceed the rate established under section 475.55; and
(3) whether the drainage bonds are payable annually or semiannually.
(b) The board shall determine the years and amounts of principal maturities that are
necessary by the anticipated collections of the drainage systems assessments, without regard to
any limitations on the maturities imposed by section 475.54.
    Subd. 5. Temporary drainage bonds maturing in two years or less. The board may issue
and sell temporary drainage bonds under this subdivision maturing not more than two years after
their date of issue, instead of bonds as provided under subdivision 4. The county shall issue and
sell definitive drainage bonds before the maturity of bonds issued under this subdivision and
use the proceeds to pay for the temporary drainage bonds and interest to the extent that the
temporary bonds are not paid for by assessments collected or other available funds. The holders
of temporary drainage bonds and the taxpayers of the county have and may enforce by mandamus
or other appropriate proceedings:
(1) all rights respecting the levy and collection of assessments sufficient to pay the cost of
drainage proceedings and construction financed by the temporary drainage bonds that are granted
by law to holders of other drainage bonds, except the right to require levies to be collected before
the temporary drainage bonds mature; and
(2) the right to require the offering of definitive drainage bonds for sale, or to require the
issuance of definitive drainage bonds in exchange for the temporary drainage bonds, on a par for
par basis, bearing interest at the rate established under section 475.55 if the definitive drainage
bonds have not been sold and delivered before the maturity of the temporary drainage bonds.
    Subd. 6. Definitive drainage bonds. The definitive drainage bonds issued in exchange for
an issue of temporary drainage bonds must be numbered and mature serially at times and in
amounts to allow the principal and interest to be paid when due by the collection of assessments
levied for the drainage systems financed by the temporary bond issue. The definitive bonds are
subject to redemption and prepayment on any interest payment date when the county notifies the
definitive bondholders who have registered their names and addresses with the county treasurer.
The bondholders must be notified by mail 30 days before the interest payment date. The definitive
bonds must be delivered in order of their serial numbers, lowest numbers first, to the holders of
the temporary drainage bonds in order of the serial numbers of the bonds held by them.
    Subd. 7. Sale of definitive drainage bonds. The board must sell and negotiate the definitive
drainage bonds according to sections 475.56 and 475.60.
    Subd. 8. County investment, purchase, and selling of temporary drainage bonds. (a)
Funds of the issuing county may be invested in temporary drainage bonds under section 118A.04,
except that the temporary drainage bonds may be:
(1) purchased by the county when the temporary drainage bonds are initially issued;
(2) purchased only out of funds that the board determines will not be required for other
purposes before the temporary drainage bonds mature; and
(3) resold before the temporary drainage bonds mature only if there is an unforeseen
emergency.
(b) If a temporary drainage bond purchase is made from money held in a sinking fund for
other bonds of the county, the holders of the other bonds may enforce the county's obligation to
sell definitive bonds at or before the maturity of the temporary drainage bonds, or exchange the
other bonds, in the same manner as holders of the temporary drainage bonds.
    Subd. 9. Delivery of bonds as drainage work proceeds. The board may provide in the
contract for the sale of drainage bonds, temporary drainage bonds, and definitive drainage bonds,
that the bonds are delivered as the drainage work proceeds and the money is needed, and that
interest is paid only from the date of delivery.
    Subd. 10. Bond recital. Each drainage bond, temporary drainage bond, and definitive
drainage bond must contain a recital that it is issued by authority of and in strict accordance
with this chapter. The recital is conclusive in favor of the holders of the bonds as against the
county, that the drainage project has been properly established, that property within the county is
subject to assessment for benefits in an amount not less than the amount of the bonds, and that all
proceedings and construction relative to the drainage systems financed by the bonds have been
or will be made according to law.
    Subd. 11. How bonds may be paid. The board may pay drainage bonds, temporary drainage
bonds, and definitive drainage bonds issued under this chapter from any available funds in the
county treasury if the money in the common drainage bond redemption fund or in the drainage
fund for the issued bonds is insufficient. The county treasury funds that money is transferred from
must be reimbursed, with interest at a rate of seven percent per year for the time the money is
actually needed, from assessments on the drainage systems or from the sale of drainage funding
bonds.
History: 1990 c 391 art 5 s 84; 1996 c 399 art 2 s 1; 2006 c 259 art 9 s 1
103E.641 DRAINAGE FUNDING BONDS.
    Subdivision 1. Authority. The board may issue drainage funding bonds under the conditions
and terms in this section.
    Subd. 2. Conditions for issuance. Drainage funding bonds may be issued if:
(1) money in a drainage system account or in the common drainage bond redemption fund
will not be sufficient to pay the principal and interest of the drainage bonds payable from the
funds and becoming due within one year afterwards; or
(2) the county has paid any of the principal or interest on any of its drainage bonds from
county funds other than the fund from which the bonds are payable, or by the issuance of county
warrants issued and outstanding.
    Subd. 3. Auditor's certificate. (a) Before drainage funding bonds are authorized or issued
under this section, the county auditor shall first sign and seal a certificate and present the
certificate to the board. The board shall enter the certificate in its records. The certificate must
state in detail, for each of the several drainage systems:
(1) the amount that will be required to pay an existing shortage under subdivision 2; and
(2) the probable amount that will be required to pay the principal and interest of the county's
outstanding drainage bonds that become due within one year afterwards.
(b) The certificate is conclusive evidence that the county has authority to issue bonds under
the provisions of this section in an amount that does not exceed the aggregate amount specified
in the auditor's certificate.
    Subd. 4. Issuance of bonds. When the auditor's certificate is entered in the board's records,
the board may issue and sell, from time to time, county drainage funding bonds for the same
drainage purposes as the funds listed in the certificate were used. The bonds must be designated
drainage funding bonds. The board shall authorize issuance of the drainage funding bonds by
resolution. The drainage funding bonds must be sold, issued, bear interest, and obligate the county
as provided in section 103E.635 for drainage bonds. The drainage funding bonds must mature
serially in annual installments that are payable within 15 years.
    Subd. 5. Application of bond proceeds. The proceeds of drainage funding bonds that are
paid into the treasury must be applied to the purpose for which they are issued.
    Subd. 6. County bond obligation. Drainage funding bonds are general obligations of the
county but are not included in determining the county's net indebtedness under any law.
History: 1990 c 391 art 5 s 85
103E.645 ALLOWANCE AND PAYMENT OF FEES AND EXPENSES.
    Subdivision 1. Fees and expenses. The fees and expenses in this section are allowed and
must be paid for services provided under this chapter.
    Subd. 2. Engineer, engineer's assistants, and other employees. The compensation of the
engineer, the engineer's assistants, and other employees is on a per diem basis and must be set by
order of the drainage authority. The order setting compensation must provide for payment of the
actual and necessary expenses of the engineer, the engineer's assistants, and other employees,
including the cost of the engineer's bond.
    Subd. 3. Viewers. Each viewer may be paid for every necessary day the viewer is engaged
on a per diem basis and for the viewer's actual and necessary expenses. The compensation must
be set by the drainage authority.
    Subd. 4. Board members. Each member of the board may be paid a per diem under section
375.055, subdivision 1, and actual and necessary expenses incurred while actually employed in
drainage proceedings or construction, or in the inspection of any drainage system if the board
member is appointed to a committee for that purpose.
    Subd. 5. Auditor, attorney for the petitioners, and other county officials. The county
auditor and the attorney for the petitioners must each be paid reasonable compensation for
services actually provided as determined by the drainage authority. The fees and compensation
of all county officials in drainage proceedings and construction are in addition to other fees
and compensation allowed by law.
    Subd. 6. Petitioners' bond. The cost of the petitioners' bond must be allowed and paid.
    Subd. 7. Payment. The fees and expenses provided for in this chapter for a drainage project
or system in one county must be audited, allowed, and paid by order of the board or for a drainage
project or system in more than one county must be audited, allowed, and paid by order of the
drainage authority after ten days' written notice to each affected county. The notice must be given
by the auditor to the auditors of affected counties. The notice must state the time and location of
the hearing and that all bills on file with the auditor at the date of the notice must be presented
for hearing and allowance.
History: 1990 c 391 art 5 s 86
103E.651 DRAINAGE SYSTEM ACCOUNT.
    Subdivision 1. Funds for drainage system costs. The board shall provide funds to pay
the costs of drainage projects and systems.
    Subd. 2. Drainage system account. The auditor shall keep a separate account for each
drainage system. The account must be credited with all money from the sale of bonds and
bond premiums and all money received from interest, liens, assessments, and other sources
for the drainage system. The account must be debited with every item of expense made for
the drainage system.
    Subd. 3. Investment of surplus funds. If a drainage system account or the common drainage
bond redemption fund has a surplus over the amount required for payment of obligations presently
due and payable from the account or fund, the board may invest any part of the surplus in bonds
or certificates of indebtedness of the United States or of the state.
    Subd. 4. Dormant drainage system account transferred to general revenue fund. If a
surplus has existed in a drainage system account for a period of 20 years or more and there
have not been any expenditures from the account during the period, the board, by a unanimous
resolution, may transfer the surplus remaining in the drainage system account to the general
revenue fund of the county.
History: 1990 c 391 art 5 s 87
103E.655 PAYMENT OF DRAINAGE SYSTEM COSTS.
    Subdivision 1. Payment made from drainage system account. The costs for a drainage
project proceeding and construction must be paid from the drainage system account by drawing
on the account.
    Subd. 2. Insufficient funds; transfer from other accounts. If money is not available
in the drainage system account on which the warrant is drawn, the board may, by unanimous
resolution, transfer funds from any other drainage system account under its jurisdiction or from
the county general revenue fund to the drainage system account. If the board transfers money
from another account or fund to a drainage system account, the money plus interest must be
reimbursed from the proceeds of the drainage system that received the transfer. The interest
must be computed for the time the money is actually needed at the same rate per year charged
on drainage liens and assessments.
    Subd. 3. Warrant on account with insufficient funds; interest on warrant. If a warrant is
issued by the auditor under this chapter and there is not enough money in the drainage system
account to pay the warrant when it is presented, the county treasurer shall endorse the warrant
"Not paid for want of funds" with the date and treasurer's signature. Interest on the warrant must be
at the rate of six percent per year and paid annually from available funds until the warrant is called
in and paid by the treasurer. Interest may not be paid on a warrant after money is available to the
treasurer to pay the warrants. The warrant is a general obligation of the county issuing the warrant.
History: 1990 c 391 art 5 s 88
103E.661 EXAMINATION AND ESTABLISHMENT OF DRAINAGE SYSTEM
ACCOUNTS BY STATE AUDITOR.
    Subdivision 1. State auditor must examine accounts upon application. A county may
apply, by resolution, to the state auditor to examine the accounts and records of any or all
drainage systems in the county.
    Subd. 2. Establishment of accounts. The auditor must establish a system of accounts for
each drainage system applied for in the county.
    Subd. 3. Payment of expenses. The compensation and travel and hotel expenses of the
examining accountant must be audited, allowed, and paid into the state treasury by the board.
The money must be credited to the general fund. The county auditor shall apportion the expenses
among the drainage systems in the county.
History: 1990 c 391 art 5 s 89

PROCEDURE TO REPAIR DRAINAGE SYSTEMS

103E.701 REPAIRS.
    Subdivision 1. Definition. The term "repair," as used in this section, means to restore all or a
part of a drainage system as nearly as practicable to the same condition as originally constructed
and subsequently improved, including resloping of ditches and leveling of waste banks if
necessary to prevent further deterioration, realignment to original construction if necessary to
restore the effectiveness of the drainage system, and routine operations that may be required to
remove obstructions and maintain the efficiency of the drainage system. "Repair" also includes:
(1) incidental straightening of a tile system resulting from the tile-laying technology used
to replace tiles; and
(2) replacement of tiles with the next larger size that is readily available, if the original
size is not readily available.
    Subd. 2. Repairs affecting public waters. Before a repair is ordered, the drainage authority
must notify the commissioner if the repair may affect public waters. If the commissioner disagrees
with the repair depth, the engineer, a representative appointed by the director, and a soil and water
conservation district technician must jointly determine the repair depth using soil borings, field
surveys, and other available data or appropriate methods. Costs for determining the repair depth
beyond the initial meeting must be shared equally by the drainage system and the commissioner.
The determined repair depth must be recommended to the drainage authority. The drainage
authority may accept the joint recommendation and proceed with the repair.
    Subd. 3. Repair of town ditches. The town board has the power of a drainage authority to
repair a town drainage system located within the town.
    Subd. 4. Bridges and culverts. (a) Highway bridges and culverts constructed on a drainage
system established on or after March 25, 1947, must be maintained by the road authority charged
with the duty of maintenance under section 103E.525.
(b) Private bridges or culverts constructed as a part of a drainage system established by
proceedings that began on or after March 25, 1947, must be maintained by the drainage authority
as part of the drainage system. Private bridges or culverts constructed as a part of a drainage system
established by proceedings that began before March 25, 1947, may be maintained, repaired, or
rebuilt and any portion paid for as part of the drainage system by the drainage authority.
(c) For a repair of a drainage system that has had redetermination of benefits under section
103E.351, the drainage authority may repair or rebuild existing bridges or culverts on town and
home rule charter and statutory city roads constructed as part of the drainage system and any
portion of the cost may be paid by the drainage system.
    Subd. 5. Construction of road instead of bridge or culvert. In a repair proceeding under
sections 103E.701 to 103E.745, if the drainage authority finds that constructing a private road is
more cost-effective or practical than constructing a bridge or culvert, a drainage authority may
order a private road to be constructed under section 103E.526, instead of a bridge or culvert.
    Subd. 5a. Compensation to landowners instead of bridge or culvert repair. In a repair
proceeding under sections 103E.701 to 103E.745, if the drainage authority finds that repairs to a
private bridge or culvert are more expensive than compensation to landowners for permanent
removal of the bridge or culvert, the drainage authority may order an amount of compensation to
be paid to all landowners directly benefiting from the bridge or culvert, provided that:
(1) all landowners directly benefiting from the bridge or culvert provide written consent for
permanent removal of the bridge or culvert;
(2) all landowners directly benefiting from the bridge or culvert agree in writing to
permanently waive any right to repair or reconstruction of the bridge or culvert; and
(3) the compensation and cost of removing the bridge or culvert is less than the cost of
repair of the bridge or culvert.
    Subd. 6. Wetland restoration and mitigation. Repair of a drainage system may include
the preservation, restoration, or enhancement of wetlands; wetland replacement under section
103G.222; and the realignment of a drainage system to prevent drainage of a wetland.
History: 1990 c 391 art 5 s 90; 1991 c 354 art 10 s 2; 1993 c 175 s 1; 1996 c 462 s
4; 2003 c 84 s 1
103E.705 REPAIR PROCEDURE.
    Subdivision 1. Inspection. After the construction of a drainage system has been completed,
the drainage authority shall maintain the drainage system that is located in its jurisdiction
including grass strips under section 103E.021 and provide the repairs necessary to make the
drainage system efficient. The drainage authority shall have the drainage system inspected on
a regular basis by an inspection committee of the drainage authority or a drainage inspector
appointed by the drainage authority.
    Subd. 2. Grass strip inspection and compliance notice. (a) The drainage authority having
jurisdiction over a drainage system must inspect the drainage system for violations of section
103E.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 103E.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 103E.021;
(5) the measures that must be taken by the property owner to comply with section 103E.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 103E.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 103E.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 103E.021.
    Subd. 3. Drainage inspection report. For each drainage system that the board designates
and requires the drainage inspector to examine, the drainage inspector shall make a drainage
inspection report in writing to the board after examining a drainage system, designating portions
that need repair or maintenance of grass strips and the location and nature of the repair or
maintenance. The board shall consider the drainage inspection report at its next meeting and may
repair all or any part of the drainage system as provided under this chapter. The grass strips must
be maintained in compliance with section 103E.021.
    Subd. 4. Inspection report to drainage authority. If the inspection committee or drainage
inspector reports, in writing, to the drainage authority that maintenance of grass strips or repairs
are necessary on a drainage system and the report is approved by the drainage authority, the
maintenance or repairs must be made under this section.
    Subd. 5. Repairs less than $50,000. If the drainage authority finds that the estimated cost
of repairs and maintenance of one drainage system for one year will be less than the greater
of $50,000 or $1,000 per mile of open ditch in the ditch system, it may have the repair work
done by hired labor and equipment without advertising for bids or entering into a contract for
the repair work.
    Subd. 6. Annual repair assessment levy limits. The drainage authority may give notice of
and hold a hearing on the repair levy before ordering the levy of an assessment for repairs. In one
calendar year the drainage authority may not levy an assessment for repairs or maintenance on
one drainage system for more than 20 percent of the benefits of the drainage system, $1,000 per
mile of open ditch in the ditch system, or $50,000, whichever is greater, except for a repair made
after a disaster as provided under subdivision 7 or under the petition procedure.
    Subd. 7. Repair and construction after disaster. The drainage authority may repair and
reconstruct the drainage system without advertising for bids and without regard to the $1,000 per
mile of open ditch or $50,000 limitation if:
(1) a drainage system is destroyed or impaired by floods, natural disaster, or unforeseen
circumstances;
(2) the area where the drainage system is located has been declared a disaster area by the
President of the United States and federal funds are available for repair or reconstruction; and
(3) the public interests would be damaged by repair or reconstruction being delayed.
History: 1990 c 391 art 5 s 91
103E.711 COST APPORTIONMENT FOR JOINT COUNTY DRAINAGE SYSTEMS.
    Subdivision 1. Repair cost statement. For a joint county drainage system the auditor of a
county that has made repairs may present a repair cost statement at the end of each year, or other
convenient period after completion, to each affected county. The repair cost statement must
show the nature and cost of the repairs to the drainage system and must be based on the original
apportionment of cost following the establishment of the drainage system. If a board approves the
repair costs, the amount of the statement must be paid to the county submitting the statement.
    Subd. 2. Repair cost statement not paid. (a) If a county does not pay the amount of the
repair cost statement, the board of an affected county may petition the joint county drainage
authority. The petition must:
(1) show the nature and necessity of the repairs made to the drainage system in the county
during the period;
(2) show the cost of the repairs; and
(3) request the drainage authority to apportion the costs, by order, among the affected
counties.
(b) When the petition is filed, the drainage authority shall, by order, set a time and location for
a hearing to apportion the costs, and direct the auditor to give notice of the hearing to each affected
county by publication and notice by mail to its auditor. At or before the hearing, the auditor of each
affected county, except the petitioner, shall file with the drainage authority a statement showing:
(1) all repairs made to the drainage system in that county, not previously reimbursed;
(2) the nature and necessity of the repairs; and
(3) the cost of the repairs.
(c) The drainage authority has jurisdiction over the affected counties and shall hear all
interested parties. The drainage authority shall determine which repairs were necessary and
reasonable and proper costs. For the allowed repairs the drainage authority shall balance the
accounts among the affected counties, by charging each county with its proportionate share of
the cost of all repairs made and crediting each county with the amount paid for the repairs. The
drainage authority shall order a just reimbursement among the affected counties. A certified copy
of the order must be filed by the auditor with the auditors of affected counties, and the boards
shall make the required reimbursement.
History: 1990 c 391 art 5 s 92
103E.715 PROCEDURE FOR REPAIR BY PETITION.
    Subdivision 1. Repair petition. An individual or an entity interested in or affected by a
drainage system may file a petition to repair the drainage system. The petition must state that
the drainage system needs repair. The auditor shall present the petition to the board at its next
meeting or, for a joint county drainage system, to the drainage authority within ten days after
the petition is filed.
    Subd. 2. Engineer's repair report. If the drainage authority determines that the drainage
system needs repair, the drainage authority shall appoint an engineer to examine the drainage
system and make a repair report. The report must show the necessary repairs, the estimated cost
of the repairs, and all details, plans, and specifications necessary to prepare and award a contract
for the repairs. The drainage authority may give notice and order a hearing on the petition before
appointing the engineer.
    Subd. 3. Notice of hearing. When the repair report is filed, the auditor shall promptly
notify the drainage authority. The drainage authority in consultation with the auditor shall set
a time, by order, not more than 30 days after the date of the order for a hearing on the repair
report. At least ten days before the hearing, the auditor shall give notice by mail of the time and
location of the hearing to the petitioners, owners of property, and political subdivisions likely to
be affected by the repair in the repair report.
    Subd. 4. Hearing on repair report. (a) The drainage authority shall make findings and
order the repair to be made if:
(1) the drainage authority determines from the repair report and the evidence presented that
the repairs recommended are necessary for the best interests of the affected property owners; or
(2) the repair petition is signed by the owners of at least 26 percent of the property area
affected by and assessed for the original construction of the drainage system, and the drainage
authority determines that the drainage system is in need of repair so that it no longer serves its
original purpose and the cost of the repair will not exceed the total benefits determined in the
original drainage system proceeding.
(b) The order must direct the auditor and the chair of the board or, for a joint county drainage
system, the auditors of the affected counties to proceed and prepare and award a contract for the
repair of the drainage system. The contract must be for the repair described in the repair report
and as determined necessary by the drainage authority, and be prepared in the manner provided
in this chapter for the original drainage system construction.
    Subd. 5. Apportionment of repair cost for joint county drainage system. For the repair
of a joint county drainage system, the drainage authority shall, by order, apportion the repair
cost among affected counties in the same manner required in the original construction of the
drainage system.
    Subd. 6. Repair by resloping ditches, leveling waste banks, installing erosion control,
and removing trees. (a) For a drainage system that is to be repaired by resloping ditches, leveling
waste banks, installing erosion control measures, or removing trees, before ordering the repair,
the drainage authority must appoint viewers to assess and report on damages and benefits if it
determines that:
(1) the resloping, leveling, installing erosion control measures, or tree removal will require
the taking of any property not contemplated and included in the original proceeding for the
establishment of the drainage system;
(2) any waste bank leveling will directly benefit property where the bank leveling is
specified; and
(3) the installation of erosion control measures will aid the long-term efficiency of the
drainage system.
(b) The viewers shall assess and report damages and benefits as provided by sections
103E.315 and 103E.321. The drainage authority shall hear and determine the damages and
benefits as provided in sections 103E.325, 103E.335, and 103E.341. The hearing shall be held
within 30 days after the property owners' report is mailed. Damages must be paid as provided by
section 103E.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.
History: 1990 c 391 art 5 s 93
103E.721 REPLACEMENT AND HYDRAULIC CAPACITY OF BRIDGES AND
CULVERTS.
    Subdivision 1. Report on hydraulic capacity. If the engineer determines in a drainage
system repair proceeding that because of added property under section 103E.741 or otherwise,
a bridge constructed or replaced or culvert installed or replaced as a part of a drainage system
provides inadequate hydraulic capacity for the efficient operation of the drainage system to serve
its original purpose, the engineer shall make a hydraulic capacity report to the drainage authority.
The hydraulic capacity report must include plans and specifications for the recommended
replacement of bridges and culverts, the necessary details to make and award a contract, and the
estimated cost.
    Subd. 2. Notice. When the hydraulic capacity report is filed, the auditor shall promptly notify
the drainage authority. The drainage authority in consultation with the auditor shall, by order,
set a time not more than 30 days after the date of the order, for a hearing on the report. At least
ten days before the hearing, the auditor shall give notice by mail of the time and location of the
hearing to the petitioners, owners of property, and political subdivisions likely to be affected by
the repair proposed in the repair report. The notice may be given in conjunction with and as a
part of the repair report notice, but the notice must specifically state that increasing the hydraulic
capacity will be considered by the drainage authority at the hearing.
    Subd. 3. Report hearing. At the hearing on the hydraulic capacity report, the drainage
authority shall hear all interested parties. If the drainage authority finds that existing bridges and
culverts provide insufficient hydraulic capacity for the efficient operation of the drainage system
as originally constructed or subsequently improved, the drainage authority shall make findings
accordingly, and may order that the hydraulic capacity be increased by constructing bridges or
installing culverts of a sufficient capacity. The drainage authority shall determine and include in
the order the type and plans for the replacement bridges or culverts. The order must direct the
state, political subdivision, railroad company, or other entity to construct bridges or culverts
required by the order for its road or right-of-way within a reasonable time stated in the order. The
auditor shall notify the state, political subdivision, railroad company, or other entity to construct
the bridges and culverts in accordance with the order.
    Subd. 4. Construction not completed within specified time. If the work is not done within
the time specified, the drainage authority may order the bridges and culverts built and the cost
collected as an assessment for benefits.
    Subd. 5. Request for culvert or bridge to be installed as part of repair. If a political
subdivision, railroad company, or other entity, at the hearing or when notified to construct a
bridge or install a culvert, requests that the bridge or culvert be installed as part of the repair of
the drainage system, the drainage authority may, by order, direct the cost of the construction and
installation be assessed and collected from the political subdivision, railroad company, or other
entity in the manner provided by section 103E.731.
History: 1990 c 391 art 5 s 94
103E.725 COST OF REPAIR.
All fees and costs incurred for proceedings relating to the repair of a drainage system,
including inspections, engineering, viewing, and publications, are costs of the repair and must be
assessed against the property and entities benefited.
History: 1990 c 391 art 5 s 95
103E.728 APPORTIONMENT OF REPAIR COSTS.
    Subdivision 1. Generally. The cost of repairing a drainage system shall be apportioned pro
rata on all property and entities that have been assessed benefits for the drainage system except
as provided in this section.
    Subd. 2. Additional assessment for agricultural practices on grass strip. (a) The drainage
authority may, after notice and hearing, charge an additional assessment on property that has
agricultural practices on or otherwise violates provisions related to the permanent grass strip
acquired under section 103E.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.
History: 1990 c 391 art 5 s 96
103E.731 ASSESSMENT; BONDS.
    Subdivision 1. Repair cost of assessments. If there is not enough money in the drainage
system account to make a repair, the board shall assess the costs of the repairs on all property and
entities that have been assessed benefits for the drainage system.
    Subd. 2. Number of installments. The assessments may be paid in annual installments
specified in the assessment order. If the assessments are not more than 50 percent of the original
cost of the drainage system, the installments may not exceed ten. If the assessments are greater
than 50 percent of the original cost of the drainage system, the board may order the assessments to
be paid in 15 or less installments.
    Subd. 3. Interest on assessments. If the order provides for payment in installments, interest
on unpaid assessments from the date of the order for assessments must be set by the board in
the order. The interest rate may not exceed seven percent per year and must be collected with
each installment.
    Subd. 4. Collection of assessments. If the assessment is not payable in installments, a lien
does not need to be filed, and the assessment, plus interest from the date of the order to August 15
of the next calendar year, must be entered on the tax lists for the year. The assessment and interest
are due and payable with and as a part of the real estate taxes for the year. If an assessment is levied
and payable in installments, the auditor shall file for the record in the county recorder's office an
additional tabular statement in substance as provided in section 103E.601, and all the provisions
of sections 103E.605, 103E.611, and 103E.615 relating to collection and payment must apply to
the assessment. Upon the filing of the tabular statement, the installment and interest are due and
payable and must be entered on the tax lists and collected in the same manner as the original lien.
    Subd. 5. Conditions to sell bonds for repair. If a contract for drainage system repair has
been entered into under this chapter or the repair has been ordered to be constructed by hired
labor and equipment, and the board has ordered the assessments to be paid in installments, the
board may issue and sell bonds, as provided by section 103E.635.
    Subd. 6. Repair of state drainage system when no benefits were assessed. For the repair
of a drainage system established by the state where benefits were not assessed to the property, the
drainage authority shall proceed to appoint viewers to determine the benefits resulting from the
repair and collect assessments for the repair as provided in this chapter.
History: 1990 c 391 art 5 s 97
103E.735 DRAINAGE SYSTEM REPAIR FUND.
    Subdivision 1. Authority and limits of fund. To create a repair fund for a drainage system
to be used only for repairs, the drainage authority may apportion and assess an amount against
all property and entities assessed for benefits in proceedings for establishment of the drainage
system, including property not originally assessed and subsequently found to be benefited
according to law. The fund may not exceed 20 percent of the assessed benefits of the drainage
system or $40,000, whichever is greater. If the account in a fund for a drainage system exceeds
the larger of 20 percent of the assessed benefits of the drainage system or $40,000, assessments
for the fund may not be made until the account is less than the larger of 20 percent of the assessed
benefits or $40,000. Assessments must be made pro rata according to the determined benefits.
Assessments may be made payable, by order, in equal annual installments. The auditor shall file
a tabular statement as provided in section 103E.731, subdivision 4, with the county recorder.
Assessments must be collected as provided in section 103E.731.
    Subd. 2. Transfer of drainage system. If a drainage system within the county has been
taken over by a watershed district, or if responsibility for repair and maintenance of the drainage
system has been assumed by any other governing body, the board may transfer any remaining
surplus of the drainage system repair fund to the repair fund of the watershed district or to the
appropriate fund of any existing governing body having responsibility for repair and maintenance
of the drainage system.
History: 1990 c 391 art 5 s 98
103E.741 INCLUSION OF PROPERTY THAT HAS NOT BEEN ASSESSED BENEFITS.
    Subdivision 1. Consideration by engineer. In a proceeding to repair a drainage system,
if the engineer determines or is made aware that property that was not assessed for benefits for
construction of the drainage system has been drained into the drainage system or has otherwise
benefited from the drainage system, the engineer shall submit a map with the repair report. The
map must show all public and private main ditches and drains that drain into the drainage
system, all property affected or otherwise benefited by the drainage system, and the names of the
property owners to the extent practicable. The property owners must be notified of the hearing on
the repair report at least ten days before the hearing. The auditor must give notice of the time
and location of the hearing by mail.
    Subd. 2. Appointment of viewers. At the hearing on the repair report, if the drainage
authority determines that property not assessed for benefits for the construction of the drainage
system has been benefited by the drainage system, the drainage authority shall appoint viewers
as provided by section 103E.305 before the repair contract is awarded. The viewers shall
determine the benefits to all property and entities benefited by the original construction of the
drainage system and not assessed for benefits arising from its construction. The viewers shall
make a viewers' repair report to the drainage authority as provided by section 103E.315. When
the viewers' repair report is filed, the auditor shall give notice of a hearing as required by section
103E.325 and the drainage authority has jurisdiction of each tract of property described in the
viewers' report as provided in section 103E.331.
    Subd. 3. Viewers' repair report hearing. At the hearing on the viewers' repair report, the
drainage authority shall hear all interested parties and determine the benefits to property and
entities benefited by the original construction of the drainage system and not assessed for benefits.
    Subd. 4. Appeal of assessment order. A person may appeal from the order determining the
assessments as provided by section 103E.091.
    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.
History: 1990 c 391 art 5 s 99
103E.745 COST OF REPAIR EXCEEDING BENEFITS IN ANOKA COUNTY.
If the cost of the repair of a drainage system exceeds the benefits determined in the original
proceedings for the establishment of the drainage system, the requirements of section 103E.215
for improvements of drainage systems apply if:
(1) the repair will result in the drainage of 100 or more acres of public waters in Anoka
County;
(2) the public waters have existed for 15 or more years;
(3) the drainage system has not been substantially repaired for more than 25 years; and
(4) the physical repair was not started before July 1, 1980.
History: 1990 c 391 art 5 s 100

CONSOLIDATION, DIVISION, AND

ABANDONMENT OF DRAINAGE SYSTEMS

103E.801 CONSOLIDATION OR DIVISION OF DRAINAGE SYSTEMS.
    Subdivision 1. Authority to consolidate or divide. After the benefited area of a drainage
system has been redetermined by the drainage authority under section 103E.351 or in connection
with drainage proceedings, the drainage authority may divide one system into two or more
separate systems, consolidate two or more systems, transfer part of one system to another, or
attach a part of a system that has been abandoned as provided in section 103E.805 or 103E.811
to another system to provide for the efficient administration of the system consistent with the
redetermination of the benefited area.
    Subd. 2. Initiation of action. The consolidation or division may be initiated by the drainage
authority on its own motion or by any party interested in or affected by the drainage system filing
a petition. If the system is under the jurisdiction of a drainage authority, the petition must be
filed with the auditor. If the system is under the jurisdiction of a watershed board, the petition
must be filed with the secretary of the board.
    Subd. 3. Hearing. (a) When a drainage authority or watershed board directs by resolution or
a petition is filed, the drainage authority in consultation with the auditor or secretary shall set a
time and location for a hearing. The auditor or secretary shall give notice by publication to all
persons interested in the drainage system. The drainage authority may consolidate or divide
drainage systems, by order, if it determines that the division of one system into two or more
separate systems, the consolidation of two or more systems, the transfer of part of one system to
another, or the attachment of a previously abandoned part of a system to another system:
(1) is consistent with the redetermination of the benefited areas of the drainage system;
(2) would provide for the efficient administration of the drainage system; and
(3) would be fair and equitable.
(b) An order to consolidate or divide drainage systems does not release property from a
drainage lien or assessment filed for costs incurred on account of a drainage system before the
date of the order.
History: 1990 c 391 art 5 s 101
103E.805 REMOVAL OF PROPERTY FROM AND PARTIAL ABANDONMENT OF A
DRAINAGE SYSTEM.
    Subdivision 1. Petition. After the construction of a drainage system, the owner of benefited
property may petition the drainage authority to remove property from the drainage system or
abandon any part of the drainage system that is not of public benefit and utility and does not serve
a substantial useful purpose to property remaining in the system if:
(1) waters are diverted from property assessed for benefits so that the drainage from the
property does not use or affect the drainage system; or
(2) a dam authorized by law is constructed in the drainage system so that the property above
the dam cannot use or receive benefits from the drainage system.
    Subd. 2. Filing. If the drainage system is under the jurisdiction of a drainage authority, the
petition must be filed with the auditor. If the system is under the jurisdiction of a watershed
district, the petition must be filed with the secretary of the district.
    Subd. 3. Hearing. (a) When the petition is filed, the drainage authority in consultation with
the auditor or the secretary shall set a time and location for a hearing on the partial abandonment
petition and shall give notice by publication of the hearing to all persons interested in the drainage
system.
(b) At the hearing, the drainage authority shall make findings and shall direct, by order, that
the petitioners' property be removed from the drainage system if the drainage authority determines:
(1) that the waters from the petitioners' property have been diverted from the drainage system,
or that a dam has been lawfully constructed and the property cannot use the drainage system;
(2) that the property is not benefited by the drainage system and does not use or affect the
drainage system; and
(3) that removing the property from the drainage system will not prejudice the property
owners and property remaining in the system.
(c) The drainage authority shall make findings and direct, by order, that part of the drainage
system be abandoned if the drainage authority determines that part of the drainage system does
not serve a substantial useful purpose to any property remaining in the system and is not of a
substantial public benefit and utility.
    Subd. 4. Effect of removing property from drainage system. The property that has been
removed from the drainage system is not affected by the drainage system at any later proceeding
for the repair or improvement of the drainage system and a drainage lien or assessment for repairs
or improvements may not be made against the property that has been removed on or after the
date of the order.
    Subd. 5. Liens and assessments on property removed or abandoned. An order under this
section does not release the property from a drainage lien filed on account of the drainage system
before the date of the order. An order under this section does not release the property from any
assessment or a drainage lien filed on or after the date of the order for costs incurred on account of
the drainage system before the date of the order.
History: 1990 c 391 art 5 s 102
103E.811 ABANDONMENT OF DRAINAGE SYSTEM.
    Subdivision 1. Drainage lien payment period must expire. After the period originally fixed
or subsequently extended to pay the assessment of the drainage liens expires, a drainage system
may be abandoned as provided in this section.
    Subd. 2. Petitioners. A petition must be signed by at least 51 percent of the property owners
assessed for the construction of the drainage system or by the owners of not less than 51 percent
of the area of the property assessed for the drainage system. For the purpose of the petition, the
county is the resident owner of all tax-forfeited property held by the state and assessed benefits
for the drainage system, and the board may execute the petition for the county as an owner.
    Subd. 3. Petition. The petition must designate the drainage system proposed to be abandoned
and show that the drainage system is not of public benefit and utility because the agricultural
property that used the drainage system has been generally abandoned or because the drainage
system has ceased to function and its restoration is not practical.
    Subd. 4. Filing petition; jurisdiction. If all property assessed for benefits in the drainage
system is in one county, the petition must be filed with the auditor unless the petition is signed by
the board, in which case the petition must be made to the district court of the county and filed with
the court administrator. If property assessed for benefits is in two or more counties, the petition
must be filed with the auditor. When the petition is filed, the drainage authority in consultation with
the auditor, or the court administrator with the approval of the court, shall set a time and location
for a hearing on the petition. The auditor or court administrator shall give notice by publication of
the time and location of the abandonment hearing to all persons interested. The drainage authority
or the district court where the petition is properly filed has jurisdiction of the petition.
    Subd. 5. Abandonment hearing. (a) At the hearing, the drainage authority or court shall
examine the petition and determine whether it is sufficient and shall hear all interested parties.
(b) If a property owner assessed benefits for the drainage system appears and makes a written
objection to the abandonment of the drainage system, the drainage authority or court shall appoint
three disinterested persons as viewers to examine the property and report to the drainage authority
or court. The hearing must be adjourned to make the examination and report and a date must be
set to reconvene. The viewers, if appointed, shall proceed to examine the property of the objecting
owner and report as soon as possible to the drainage authority or court with the description and
situation of the property and whether the drainage system drains or otherwise affects the property.
(c) When the hearing is reconvened, the drainage authority or court shall consider the
viewers' report and all evidence offered, and:
(1) if the drainage authority determines that the drainage system serves any useful purpose to
any property or the general public, the petition for abandonment must be denied; or
(2) if the drainage authority determines that the drainage system does not serve any useful
purpose to any affected property and is not of public benefit and utility, the drainage authority or
court shall make findings and shall, by order, abandon the drainage system.
    Subd. 6. Effect of abandonment. After abandonment of a drainage system, a repair petition
for the drainage system may not be accepted and the responsibility of the drainage authority for
the maintenance of the drainage system ends.
History: 1990 c 391 art 5 s 103
103E.812 TRANSFER OF ALL OR PART OF DRAINAGE SYSTEM.
    Subdivision 1. Drainage lien payment period must expire. After the period originally
fixed or subsequently extended to pay the assessment of the drainage lien expires, all or part of
a drainage system may be transferred from the jurisdiction of the drainage authority to a water
management authority as provided in this section.
    Subd. 2. Petitioners. (a) For drainage systems outside of the seven-county metropolitan area,
and outside of the municipal boundaries of a statutory or home rule charter city, a petition must
be signed by at least 51 percent of the owners of property assessed for the construction of the
drainage system, or portion of the drainage system proposed to be transferred, or by the owners of
not less than 51 percent of the area of the property assessed for the drainage system, or portion
of the drainage system sought to be transferred. The water management authority to which the
drainage system is to be transferred must join the petition.
(b) For drainage systems wholly or partially within the municipal boundaries of a statutory
or home rule charter city, the city may petition for transfer if the drainage system or portion of
the drainage system proposed to be transferred lies within the boundaries of the city. The water
management authority to which the drainage system is to be transferred must join the petition.
(c) For drainage systems within the seven-county metropolitan area and within the
jurisdictional boundaries of an existing water management authority, the water management
authority may petition for transfer if the drainage system or portion of the drainage system
proposed to be transferred lies within the boundaries of the water management authority.
(d) For the purpose of the petition, the county is the resident owner of all tax-forfeited
property held by the state, under chapter 282, and assessed benefits for the drainage system, and
the board may execute the petition for the county as an owner. This paragraph does not apply to
lands acquired by the state under chapter 84A.
    Subd. 3. Petition. (a) The petition must designate the drainage system, or portion thereof,
proposed to be transferred and show that the transfer is necessary for the orderly management of
storm, surface, or flood waters, including management for water quality purposes.
(b) The petition must indicate the impact, if any, that the transfer will have on properties
utilizing the drainage system for an outlet or otherwise benefiting from the existence of the
drainage system.
(c) The petition must include an engineering report, prepared by the transferee water
management authority, establishing, for the record, the nature and extent of the drainage easement
occupied by the drainage system, and the as-constructed, or subsequently improved, depth, grade,
and hydraulic capacity of the drainage system.
    Subd. 4. Filing petition; jurisdiction. (a) If the drainage system is administered by a county
or joint county drainage authority and 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 where the
drainage system is located and filed with the court administrator. If the board, acting as the
drainage authority, is also the petitioning water management authority, the petition must be made
to the district court of the county where the drainage system is located and filed with the court
administrator. If property assessed for benefits is in two or more counties, the petition must be
filed with the auditor or court administrator of either (1) the county where the portion of the
drainage system sought to be transferred exists; (2) the county not petitioning for the transfer; or
(3) the county where the majority of the drainage system sought to be transferred exists.
(b) If the drainage system is administered by the board of managers of a watershed district,
the petition must be filed with the secretary of the watershed district. If the watershed district
is also the petitioning water management authority, the petition must be filed with the court
administrator consistent with the criteria in paragraph (a), clauses (1) to (3).
(c) When the petition is filed, the drainage authority in consultation with the auditor or
secretary, or the court administrator with the approval of the court, shall set a time and location for
a hearing on the petition. The auditor, secretary, or court administrator shall give notice by mail
and publication of the time and location of the transfer hearing to all persons interested. The notice
shall include a description of the property owner's right to object under subdivision 5. The drainage
authority or the district court where the petition is properly filed has jurisdiction of the petition.
    Subd. 5. Transfer 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 transfer of the drainage system, the drainage authority or court shall appoint a
technical panel to examine the drainage system, the property, and the proposed transfer and report
to the drainage authority or court. The hearing must be adjourned to make the examination and
report and a date must be set to reconvene. The technical panel shall consist, at a minimum, of a
representative of the drainage authority, a representative of the commissioner, a representative of
the soil and water conservation district, a representative of the Board of Water and Soil Resources,
and a viewer. The technical panel shall proceed to examine the drainage system, the property,
and the property owner's objections to the proposed transfer of the system and report as soon as
possible to the drainage authority or court with the merits of the objections. The technical panel
shall also determine the extent to which the transfer of the drainage system will damage or take
property. Nongovernment employee members of the technical panel must be compensated in the
same manner as viewers under section 103E.645, subdivision 3.
(c) The Board of Water and Soil Resources and the commissioner, if requested by the
drainage authority or court, shall provide any technical assistance, including engineering, surveys,
hydrologic analyses, or water quality studies as requested by the drainage authority or court.
(d) When the hearing is reconvened, the drainage authority or court shall consider the
technical panel's report and all evidence offered. If the drainage authority or court determines
that storm, surface, or flood waters along the drainage system or within the benefited area of the
drainage system, could be better managed by a water management authority, it shall authorize
the transfer of the drainage system.
    Subd. 6. Costs related to transfer and transfer proceedings. Costs, including engineering
and attorney's fees, related to the proceedings to transfer a drainage system must be paid by the
proposed transferee water management authority. If the drainage authority or court orders that
the drainage authority should not be transferred, the drainage authority shall reimburse the water
management authority from the drainage system account for the reasonable value of engineering
work conducted as part of the transfer proceedings.
    Subd. 7. Guarantee of outlet; no compromise of existing rights. (a) Any proceeding
to transfer all or part of a drainage system to a water management authority must guarantee
that all rights to an outlet are preserved for property assessed for benefits on the transferred
drainage system of at least equal hydraulic efficiency as the rights to an outlet that existed on
the date of transfer.
(b) The transfer of a drainage system to a water management authority is not a compromise
of any property right held by an owner of assessed property on the transferred drainage system.
(c) A water management authority shall compensate any owner of property assessed for
benefits on the transferred drainage system for the loss or impairment of any drainage rights
occurring after transfer of the drainage system.
    Subd. 8. Effect of transfer. (a) Except as provided in this section, after transfer of a drainage
system, or any part thereof, to a water management authority, the drainage system ceases to be
subject to regulation under this chapter except that if only a portion of a drainage system is
transferred, the water management authority may be assessed for improvements under section
103E.215 or repairs under sections 103E.701 to 103E.711 in the manner provided under sections
103E.315 and 103E.601 to 103E.615. The water management authority may manage water
within its jurisdictional boundaries according to whatever law controls the function of the water
management authority. The transferred drainage system shall become a work and a responsibility
of the transferee water management authority. All responsibility of the drainage authority for the
transferred drainage system ends.
(b) Activities conducted in the transferred drainage system must continue to be eligible for
all exemptions and exceptions available for activities conducted in public drainage systems under
sections 103G.2241 and 103G.245.
    Subd. 9. Effect on other law. This section does not amend, supersede, or repeal any existing
law providing for the transfer of a drainage system under this chapter, chapter 103D, or other law,
but is supplementary to those laws.
History: 2002 c 327 s 3