23.0025.03000
Sixty-eighth
Legislative Assembly SENATE BILL NO. 2037
of North Dakota
Introduced by
Legislative Management
(Water Drainage Committee)
1 A BILL for an Act to create and enact a new section to chapter 61-16.1 of the North Dakota
2 Century Code, relating to calculations of costs and benefits for assessment projects; to amend
3 and reenact sections 61-16.1-02, 61-16.1-09.1, 61-16.1-12.1, 61-16.1-15, 61-16.1-17,
4 61-16.1-18, 61-16.1-19, 61-16.1-20, 61-16.1-21, 61-16.1-22, and 61-16.1-23 of the North
5 Dakota Century Code, relating to costs, benefits, and special assessments for water projects; to
6 repeal section 61-16.1-01 of the North Dakota Century Code, relating to legislative intent; and to
7 provide a penalty.
8 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9 SECTION 1. AMENDMENT. Section 61-16.1-02 of the North Dakota Century Code is
10 amended and reenacted as follows:
11 61-16.1-02. Definitions.
12 In this chapter, unless the context or subject matter otherwise provides:
13 1. "Affected land" or "affected property" means land or property subject to special
14 assessment or condemnation for a project.
15 2. "Affected landowners" means landowners whose land is subject to special
16 assessment or condemnation for a project.
17 2.3. "Assessment drain" means any natural watercourse opened, or proposed to be
18 opened, and improved for the purpose of drainage, and any artificial drain of any
19 nature or description constructed for the purpose of drainage, including dikes and
20 appurtenant works, which are financed in whole or in part by special assessment. This
21 definition may include more than one watercourse or artificial channel constructed for
22 the purpose of drainage when the watercourses or channels drain land within a
23 practical drainage area.
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1 3.4. "Assessment project" means any project financed in whole or in part by a special
2 assessment.
3 5. "Benefited property" means property that accrues benefits from a project.
4 6. "Benefits" means the extent to which society and economies impacted by a project are
5 made better off through lower costs, fewer damages, or enhancements.
6 7. "Commission" means the state water commission.
7 4.8. "Conservation" means planned management of water resources to prevent
8 exploitation, destruction, neglect, or waste.
9 5.9. "Costs of the frivolous complaint" means all reasonable costs associated with the
10 requisite proceedings regarding the removal of obstructions to a drain, removal of a
11 noncomplying dike or dam, or closing a noncomplying drain, including all reasonable
12 construction costs; all reasonable attorney's fees and legal expenses; all reasonable
13 engineering fees, including investigation and determination costs; compliance
14 inspections; and necessary technical memorandum and deficiency review; and all
15 costs associated with any hearing conducted by a district, including preparation and
16 issuance of any findings of fact and any final closure order.
17 6.10. "District" means a water resource district.
18 7.11. "Frivolous" means allegations and denials in any complaint filed with a district made
19 without reasonable cause and not in good faith.
20 8.12. "Project" means any undertaking for water conservation,; flood control,; water supply,;
21 water delivery,; erosion control and watershed improvement,; drainage of surface
22 waters,; collection, processing, and treatment of sewage, or; discharge of sewage
23 effluent,; or any combination thereof, includingof purposes in this subsection, and
24 includes incidental features of any suchthe undertaking.
25 9.13. "Water resource board" means the water resource district's board of managers.
26 SECTION 2. AMENDMENT. Section 61-16.1-09.1 of the North Dakota Century Code is
27 amended and reenacted as follows:
28 61-16.1-09.1. Watercourses, bridges, and low-water crossings.
29 1. A water resource board may undertake the snagging, clearing, and maintaining of
30 natural watercourses and the debrisment of bridges and low-water crossings. The
31 board may finance the project in whole or in part with funds raised through the
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1 collection of a special assessment levied against the land and premises benefited by
2 the project. The benefits of a project must be determined in the manner provided in
3 section 61-16.1-176 of this Act. Revenue from an assessment under this section may
4 not be used for construction of a drain or reconstruction or maintenance of an existing
5 assessment drain. Any question as to whether the board is maintaining a natural
6 watercourse or is constructing a drain or reconstructing or maintaining an existing
7 assessment drain must be resolved by the department of water resources. All
8 provisions of this chapter apply to assessments levied under this section except:
9 a. An assessment may not exceed fifty cents per acre [.40 hectare] annually on
10 agricultural lands and may not exceed fifty cents annually for each five hundred
11 dollars of taxable valuation of nonagricultural property; and
12 b. If the assessment is for a project costing less than one hundred thousand dollars,
13 no action is required for the establishment of the assessment district or the
14 assessments except the board must approve the project and assessment by a
15 vote of two-thirds of the members and the board of county commissioners of the
16 county in which the project is located must approve and levy the assessments to
17 be made by a vote of two-thirds of its members.
18 (1) If a board that undertakes a project finds the project will benefit lands
19 outside water resource district boundaries, the board shall provide notice to
20 the water resource board where the benefited lands are located together
21 with the report prepared under section 61-16.1-17.
22 (2) The board of each water resource district containing lands benefited by a
23 project must approve the project and assessment by a vote of two-thirds of
24 its members. The board of county commissioners in each county that
25 contains lands benefited by a project must approve and levy the
26 assessment to be made by a vote of two-thirds of its members.
27 (3) If a project and assessment is not approved by all affected water resource
28 boards and county commission boards, the board of each water resource
29 district and the board of county commissioners of each county shall meet to
30 ensure all common water management problems are resolved pursuant to
31 section 61-16.1-10. In addition, the water resource board that undertakes
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1 the project may proceed with the project if the board finances the cost of the
2 project and does not assess land outside the boundaries of the district.
3 c. All revenue from an assessment under this section must be exhausted before a
4 subsequent assessment covering any portion of lands subject to a prior
5 assessment may be levied.
6 2. Before an assessment may be levied under this section, a public hearing must be held
7 and attended by a quorum of the affected water resource boards and a quorum of the
8 affected boards of county commissioners. The hearing must be preceded by notice as
9 to date, time, location, and subject matter published in the official newspaper in the
10 county or counties in which the proposed assessment is to be levied. The notice must
11 be published at least ten days but not more than thirty days before the public hearing.
12 SECTION 3. AMENDMENT. Section 61-16.1-12.1 of the North Dakota Century Code is
13 amended and reenacted as follows:
14 61-16.1-12.1. Water resource boards - Agreements with state or federal agencies for
15 certain improvements.
16 1. A water resource board may enter into an agreement with any federal or state agency,
17 or any combination thereofof federal or state agencies, for the construction of a
18 project, under the terms of which the contract for the work is to be let by the federal or
19 state agency or any combination thereofof federal or state agencies. If under the terms
20 of the agreement at least fifty percent of the total cost of constructing the project is to
21 be paid by the agency or agencies and if any portion of the cost of the project is to be
22 paid by the levy of special assessments, the board may by resolution may create a
23 project assessment district for the purpose of levyingto levy special assessments to
24 finance the amount that the district will be obligated to pay in accordance with the
25 agreement, over and above any other funds which are on hand and properly available
26 for that purpose. The assessment district must be of a size and form as to include all
27 properties which in the judgment ofbenefited property as determined by the board,
28 after consultation with a registered engineer designated by the board for that purpose,
29 will be benefited by the construction of the proposed project, and the board shall direct
30 the engineer to prepare a map showing the boundaries of the proposed assessment
31 district.
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1 2. The board by resolution shall by resolution declare the necessity of the project, set
2 forth the general nature and purpose of the proposed project, estimate the total cost of
3 the project, and the approximate amount or fraction of the cost which the district will be
4 obligated to pay under the agreement, and the fact that this amount, or a lesser
5 amount as the board may specify, is proposed to be paid by the levy of special
6 assessments upon benefited property within the assessment district determined to be
7 benefited by the project. The board shall causemail the resolution of necessity
8 together with, a copy of the map showing the boundaries of the assessment district,
9 and a notice stating the date and time by which the owners of any property liable to be
10 specially assessed for the proposed project must file theircast votes on the proposed
11 project with the secretary of the board to be mailed to each affected landowner
12 affected by the proposed project as determined by the tax rolls of the county in which
13 the affected property is located. The board may send the material by certified mail or
14 by regular mail attested by an affidavit of mailing signed by the attorney or secretary of
15 the board. The notice must also set forth the time and place where the board shall
16 meet to determine whether the project is approved. The notice must also be published
17 once in a newspaper of general circulation in the district and once in the official county
18 newspaper of each county in which the benefited lands areaffected property is located.
19 Within five days after the first mailing of the resolution the board shall causeserve a
20 copy of the resolution to be personally served upon any county, city, or township, in its
21 corporate capacity which may be benefited directly or indirectly from the construction
22 of the proposed project and upon any county whichthat may become liable for any
23 deficiency in the fund to be created for the project, by delivering a copy of the
24 resolution to any member of the governing body thereofof the county, city, or township.
25 3. The meeting must be held not less than thirty days after the mailing of the resolution,
26 at which time the board shall determine whether the project is approved. If the board
27 finds that fifty percent or more of the total votes filed are against a proposed project,
28 then the board may not proceed further with the proposed project. If the board finds
29 that less than fifty percent of votes filed are against the proposed project, the board
30 may proceed with the project. In any assessment district created under this section,
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1 the board may dispense with all otherthe requirements of this chapter, other than
2 those stated in this section.
3 4. After the contract for the work has been let, the board may issue warrants on the fund
4 of the project for the total amount of the cost thereofof the project, and the board,
5 without holding the hearing required by section 61-16.1-18, shall proceed to determine
6 and levy any assessments against benefited property benefited by the project and
7 prepare an assessment list all in accordance with the procedures required by section 6
8 of this Act and sections 61-16.1-2161-16.1-22 through 61-16.1-24. The provisions of
9 sections 61-16.1-25 through 61-16.1-36 are applicable to the assessments and the
10 special warrants issued pursuant to this section.
11 SECTION 4. AMENDMENT. Section 61-16.1-15 of the North Dakota Century Code is
12 amended and reenacted as follows:
13 61-16.1-15. Financing project through revenue bonds, general taxes, or special
14 assessments - Apportionment of benefitsInitiating an assessment project - Policy.
15 A water resource board shall have the authority, either upon request or by its own motion,
16 tomay acquire needed interest in property and provide for the cost of construction, alteration,
17 repair, operation, and maintenance of a project through issuance of improvement warrants or
18 with funds raised by special assessments, general tax levy, issuance of revenue bonds, or by a
19 combination of general ad valorem tax, special assessments, and revenue bonds. Whenever a
20 water resource board decides to acquire property or interests in property to construct, operate,
21 alter, repair, or maintain a project with funds raised in whole or in part through special
22 assessments, such assessments shall be apportioned to and spread upon lands or premises
23 benefited by the project in proportion to and in accordance with benefits accruing thereto. The
24 board shall assess the proportion of the cost of the project, or the part of the cost to be financed
25 with funds raised through levy and collection of special assessments which any lot, piece, or
26 parcel of land shall bear in proportion to the benefits accruing thereto and any county, city, or
27 township which is benefited thereby. In determining assessments, the water resource board
28 shall carry out to the maximum extent possible the water management policy of this chapter that
29 upstream landowners must share with downstream landowners the responsibility to provide for
30 the proper management of surface waters.
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1 SECTION 5. AMENDMENT. Section 61-16.1-17 of the North Dakota Century Code is
2 amended and reenacted as follows:
3 61-16.1-17. Financing of special improvements - Procedure.
4 When it is proposed to finance in whole or in part the construction of a project with funds
5 raised through the collection of special assessments levied against lands and premises
6 benefited by construction and maintenance of such projectan assessment project is proposed,
7 the water resource board shall examine the proposed project, and if in its opinion. If the water
8 resource board decides further proceedings are warranted, itthe board shall adopt a resolution
9 and declare that itdeclaring constructing and maintaining the proposed project is necessary to
10 construct and maintain the project. The resolution shall briefly state, identifying the nature and
11 purpose of the proposed project, and shall designatedesignating a registered engineer to assist
12 the board. For the purpose of making examinations or surveys, the board or its employeesthe
13 board's agents, after written notice to each landowner, may enter upon any land on which the
14 proposed project is located or any other lands necessary to gain access. The engineer shall
15 prepare profiles, plans, and specifications of the proposed project and estimates of the
16 proposed project's total cost thereof. The estimate of costs prepared by the engineer shall
17 include acquisition ofmust include the cost to acquire right of way and shall be in sufficient detail
18 to allowsufficiently detailed for the board to determine the probable share of the total costs that
19 willto be assessed against each of the affected landowners in the pro