Appeals of certain damages authorized to be appraised, negotiated, and tried under the procedures of chapter 117.

A bill for an act

relating to eminent domain; authorizing appeals of certain damages to be appraised,

negotiated, and tried under the procedures of chapter 117; amending Minnesota

Statutes 2024, sections 103D.511; 103D.535, subdivision 1; 103E.091, subdivision

1; 117.012, subdivision 3; proposing coding for new law in Minnesota Statutes,

chapters 103D; 103E.

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

Section 1.

Minnesota Statutes 2024, section 103D.511, is amended to read:

103D.511 CERTAIN CONDEMNATION PROVISIONS; APPLICABILITY.

Section 117.155 relating to payment of damages in a condemnation proceeding does

not apply to a project financed by special assessment
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, unless a property owner elects to

appeal a determination of damages under section 103D.536
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.

Sec. 2.

Minnesota Statutes 2024, section 103D.535, subdivision 1, is amended to read:

Subdivision 1.

What can be appealed.

(a) Any party alone or jointly may appeal to the

district court or to the board an order of the managers made in a proceeding relating to a

project and entered in the watershed district's record that determines:

(1) the amount of benefits determined;

(2) the amount of damages allowed;

(3) the allowance of fees or expenses in any proceedings;

(4) a matter in the proceeding that affects a substantial right; or

(5) an order of the managers authorizing or refusing to establish a project in whole or

in part.

(b) Actions of the managers that do not relate to projects, including actions related to

permits and actions to enforce watershed district rules, are not reviewable under this section.

(c) Projects initiated and financed by watershed districts, wholly within the metropolitan

area, under a state-approved and locally adopted surface water management plan under

section
103B.201
are not reviewable under this section.

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(d) A property owner may elect to appeal a determination of the amount of allowable

damages in an order of the managers made in a proceeding relating to a project and entered

in the watershed district's record under the procedures of section 103D.536. A property

owner that elects to appeal under section 103D.536 is prohibited from appealing the

determination of damages under the procedures in this section.

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Sec. 3.

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[103D.536] APPEAL OF DAMAGES UNDER CHAPTER 117.

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As an alternative to the appeals process under section 103D.535, a property owner who

has assessed damages in an order of the managers made in a proceeding relating to a project

and entered in the watershed district's record may appeal to the board for an appraisal and

negotiation of damages under section 117.036. The appeal must be filed with the board

within 30 days after the order is filed, including the determination of damages. If agreement

on damages cannot be reached through negotiation between the property owner and the

board, an eminent domain proceeding must be commenced under chapter 117 to determine

damages. Attorney fees and other costs related to the eminent domain proceeding are

governed by the provisions of chapter 117.

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Sec. 4.

Minnesota Statutes 2024, section 103E.091, subdivision 1, is amended to read:

Subdivision 1.

Grounds for appeal.

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(a)
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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, land use, and multipurpose water management

requirements and criteria of section
103E.015, subdivision 1
, are met.

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(b) A property owner may elect to appeal a determination of damages in an order of a

drainage authority made in a drainage proceeding under the procedures of section 103E.093.

A property owner that elects to appeal under section 103E.093 is prohibited from appealing

the determination of damages under the procedures in this section.

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Sec. 5.

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[103E.093] APPEAL OF DAMAGES UNDER CHAPTER 117.

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As an alternative to the appeals process under section 103E.091, a property owner who

has assessed damages in an order of a drainage authority made in a drainage proceeding

may appeal to the drainage authority for an appraisal and negotiation of damages under

section 117.036. The appeal must be filed with the drainage authority within 30 days after

the order is filed, including the determination of damages. If agreement on damages cannot

be reached through negotiation between the property owner and the board, an eminent

domain proceeding must be commenced under chapter 117 to determine damages. Attorney

fees and other costs related to the eminent domain proceeding are governed by the provisions

of chapter 117.

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Sec. 6.

Minnesota Statutes 2024, section 117.012, subdivision 3, is amended to read:

Subd. 3.

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Exceptions
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Application to other procedures
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.

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(a)
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This chapter does not apply

to the taking of property under laws relating
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to drainage or
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to town roads when those laws

themselves expressly provide for the taking and specifically prescribe the procedure.
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The

taking of property for a project undertaken by a watershed district under chapter 103D or

for a project undertaken by a drainage authority under chapter 103E may be carried out

under the procedure provided by those chapters.
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(b) This chapter applies to the taking of property for a watershed district project under

chapter 103D and a project undertaken by a drainage authority under chapter 103E if a

property owner appeals a determination of damages under section 103D.536 or 103E.093.

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