1.1                          A bill for an act 
  1.2             relating to drainage and water management; allowing 
  1.3             transfer of a public drainage system to a water 
  1.4             management authority; defining water management 
  1.5             authority; amending Minnesota Statutes 1998, section 
  1.6             103E.005, by adding a subdivision; proposing coding 
  1.7             for new law in Minnesota Statutes, chapter 103E. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 103E.005, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 29.  [WATER MANAGEMENT AUTHORITY.] A county or 
  1.12  municipality, watershed district, watershed management 
  1.13  organization, storm water management district, lake improvement 
  1.14  district, subordinate service district, joint powers 
  1.15  organization, or other special district organized and formed 
  1.16  according to law for the purpose of managing storm, surface, and 
  1.17  flood waters or with the authority to manage storm, surface, and 
  1.18  flood waters. 
  1.19     Sec. 2.  [103E.812] [TRANSFER OF ALL OR PART OF DRAINAGE 
  1.20  SYSTEM.] 
  1.21     Subdivision 1.  [DRAINAGE LIEN PAYMENT PERIOD MUST EXPIRE.] 
  1.22  After the period originally fixed or subsequently extended to 
  1.23  pay the assessment of the drainage liens expires, all or part of 
  1.24  a drainage system may be transferred from the jurisdiction of 
  1.25  the drainage authority to a water management authority as 
  1.26  provided in this section. 
  2.1      Subd. 2.  [PETITIONERS.] A petition must be signed by (1) 
  2.2   at least 51 percent of the owners of property assessed for the 
  2.3   construction of the drainage system, or portion of the drainage 
  2.4   system sought to be transferred, or by the owners of at least 51 
  2.5   percent of the area of the property assessed for the drainage 
  2.6   system, or portion of the drainage system sought to be 
  2.7   transferred, and (2) the water management authority to which the 
  2.8   drainage system is to be transferred.  For the purpose of the 
  2.9   petition, the county is the resident owner of all tax-forfeited 
  2.10  property held by the state and assessed benefits for the 
  2.11  drainage system, and the board may execute the petition for the 
  2.12  county as an owner. 
  2.13     Subd. 3.  [PETITION.] (a) The petition must designate the 
  2.14  drainage system, or portion thereof, proposed to be transferred 
  2.15  and show that the transfer is necessary for the orderly 
  2.16  management of storm, surface, or flood waters, including 
  2.17  management for water quality purposes. 
  2.18     (b) The petition must indicate the impact, if any, that the 
  2.19  transfer will have on properties utilizing the drainage system 
  2.20  for an outlet or otherwise benefiting from the existence of the 
  2.21  drainage system. 
  2.22     (c) The petition must state that the transferee water 
  2.23  management authority shall pay compensation for any property 
  2.24  rights damaged or taken by the transfer prior to completion of 
  2.25  the transfer of the drainage system. 
  2.26     (d) The petition must include an engineering report, 
  2.27  prepared by the transferee water management authority, 
  2.28  establishing, for the record, the nature and extent of the 
  2.29  drainage easement occupied by the drainage system, the 
  2.30  description, size, and location of any improvement that is part 
  2.31  of the drainage system, and the as constructed, or subsequently 
  2.32  improved, depth, grade, and hydraulic capacity of the drainage 
  2.33  system. 
  2.34     Subd. 4.  [FILING PETITION; JURISDICTION.] (a) If all 
  2.35  property assessed for benefits in the drainage system is in one 
  2.36  county, the petition must be filed with the auditor unless the 
  3.1   petition is signed by the board, in which case the petition must 
  3.2   be made to the district court of the county where the drainage 
  3.3   system is located, and filed with the court administrator.  If 
  3.4   the board, sitting as the drainage authority, is also the 
  3.5   petitioning water management authority, the petition must be 
  3.6   made to the district court of the county where the drainage 
  3.7   system is located and filed with the court administrator.  If 
  3.8   property assessed for benefits is in two or more counties, the 
  3.9   petition must be filed with the auditor or court administrator 
  3.10  of either (1) the county where the portion of the drainage 
  3.11  system sought to be transferred exists; (2) the county not 
  3.12  petitioning for the transfer; or (3) the county where the 
  3.13  majority of the drainage system sought to be transferred exists. 
  3.14     (b) When the petition is filed, the drainage authority in 
  3.15  consultation with the auditor, or the court administrator with 
  3.16  the approval of the court, shall set a time and location for a 
  3.17  hearing on the petition.  The auditor or court administrator 
  3.18  shall give notice by mail and publication of the time and 
  3.19  location of the transfer hearing to all persons interested.  The 
  3.20  drainage authority or the district court where the petition is 
  3.21  properly filed has jurisdiction of the petition. 
  3.22     Subd. 5.  [TRANSFER HEARING.] (a) At the hearing, the 
  3.23  drainage authority or court shall examine the petition and 
  3.24  determine whether it is sufficient and shall hear all interested 
  3.25  parties. 
  3.26     (b) If a property owner assessed benefits for the drainage 
  3.27  system appears and makes a written objection to the transfer of 
  3.28  the drainage system, the drainage authority or court shall 
  3.29  appoint a technical panel to examine the drainage system, the 
  3.30  property, and the proposed transfer and report to the drainage 
  3.31  authority or court.  The hearing must be adjourned to make the 
  3.32  examination and report and a date must be set to reconvene.  The 
  3.33  technical panel shall consist, at a minimum, of a representative 
  3.34  of the drainage authority, a representative of the commissioner, 
  3.35  a representative of the board of water and soil resources, and a 
  3.36  viewer.  The technical panel, if appointed, shall proceed to 
  4.1   examine the drainage system, the property, and the proposed 
  4.2   transfer in light of the objections of the owner and report as 
  4.3   soon as possible to the drainage authority or court with the 
  4.4   merits of the objections.  The technical panel shall also 
  4.5   determine the extent to which the transfer of the drainage 
  4.6   system will damage or take property.  Nongovernment employee 
  4.7   members of the technical panel shall be compensated in the same 
  4.8   manner as viewers as provided in this chapter. 
  4.9      (c) The board of water and soil resources and the 
  4.10  commissioner, if it is determined necessary or helpful by the 
  4.11  drainage authority or court, shall provide any technical 
  4.12  assistance, including engineering, surveys, hydrologic analyses, 
  4.13  or water quality studies as requested by the drainage authority 
  4.14  or court. 
  4.15     (d) When the hearing is reconvened, the drainage authority 
  4.16  or court shall consider the technical panel's report and all 
  4.17  evidence offered.  If the drainage authority or court determines 
  4.18  that storm, surface, or flood waters along the drainage system, 
  4.19  or within the benefited area of the drainage system, could be 
  4.20  better managed by a water management authority, it shall 
  4.21  authorize the transfer of the drainage system. 
  4.22     Subd. 6.  [COSTS RELATED TO TRANSFER AND TRANSFER 
  4.23  PROCEEDINGS.] Costs, including engineering and attorney fees, 
  4.24  related to the proceedings to transfer a drainage system must be 
  4.25  paid by the proposed transferee water management authority.  If 
  4.26  the drainage authority or court orders that the drainage system 
  4.27  should not be transferred, the drainage system shall reimburse 
  4.28  the water management authority for the reasonable value of 
  4.29  engineering work conducted as part of the transfer proceedings. 
  4.30     Subd. 7.  [GUARANTEE OF OUTLET; NO COMPROMISE OF EXISTING 
  4.31  RIGHTS.] (a) Any proceeding to transfer all or part of a 
  4.32  draining system to a jurisdictional water management authority 
  4.33  must guarantee an outlet for property assessed for benefits on 
  4.34  the transferred drainage system of at least equal hydraulic 
  4.35  efficiency as that provided by the transferred drainage system 
  4.36  in its as constructed, or subsequently improved, state. 
  5.1      (b) The transfer of a drainage system to a water management 
  5.2   authority does not act as a compromise of any property right 
  5.3   held by an owner of assessed property on the transferred 
  5.4   drainage system. 
  5.5      (c) A water management authority shall compensate any owner 
  5.6   of property assessed for benefits on the transferred drainage 
  5.7   system for the loss or impairment of any property right 
  5.8   occurring after transfer of the drainage system. 
  5.9      Subd. 8.  [EFFECT OF TRANSFER.] (a) After transfer of a 
  5.10  drainage system, or any part thereof, to a water management 
  5.11  authority, the drainage system ceases to be subject to 
  5.12  regulation under other sections of chapter 103E.  The water 
  5.13  management authority may manage water within its jurisdictional 
  5.14  boundaries according to whatever law controls the function of 
  5.15  the water management authority.  The transferred drainage 
  5.16  system, including the drainage easement and any improvements 
  5.17  that are part of the transferred drainage system, becomes a 
  5.18  works and a responsibility of the transferee water management 
  5.19  authority.  All responsibility of the drainage authority for the 
  5.20  transferred drainage system ends. 
  5.21     (b) Notwithstanding anything to the contrary, transfer of a 
  5.22  drainage system under this section does not in any way diminish, 
  5.23  compromise, or reduce the availability of exemptions to the 
  5.24  Wetland Conservation Act or exceptions to the requirements for 
  5.25  public waters work permits for activities conducted in the 
  5.26  transferred drainage system.  Activities conducted in the 
  5.27  transferred drainage system continue to be eligible for all 
  5.28  exemptions and exceptions available for activities conducted in 
  5.29  drainage systems under sections 103G.2241 and 103G.245.