Title 61 — Waters

As used in this chapter: 1. "Auditor" means the county auditor. 2. "Benefit unit" means the fee each member pays, for each service that is planned to be connected to the water system, for the privilege of using the district's facilities. 3. "Board" means the board of directors of…

A petition may at any time be filed with the department of water resources requesting the department to organize a district encompassing an area in one county or in two or more adjacent counties for the purpose of providing an adequate supply of water for the residents of the are…

The petition must be signed by the owners of at least fifty percent of all real property lying within the outside perimeter of the area designated for inclusion in the proposed district and must state: 1. The location of the area, describing the area to be served or specifying th…

When a petition for the organization of a district is filed with the department of water resources, the department shall fix a time for a hearing on the petition not less than fifteen nor more than forty-five days after the filing of the petition. The department shall prepare a n…

The notice prepared by the department of water resources must set forth: 1. The location of the area designated by the petitioners to be included in the proposed district, as described or shown by the original petition. 2. The time and place fixed by the department of water resou…

At the hearing on the petition, any owner or tenant of real property or other interested person within the boundaries of the area described in the petition may appear, in person or by a designated representative, and any representative of the state or a political subdivision or a…

After the hearing, the department of water resources may strike off any part of the territory that testimony shows will not be benefited by the creation of the district. If the department does not find that the district is reasonably necessary, the department shall dismiss the pe…

As a part of the order organizing the district, the department of water resources shall fix the time and place at which the members shall meet to select from their number a board of directors. Selection of the initial board may not be later than thirty days after the order is iss…

Within thirty days after election of the original board, proposed bylaws must be submitted for adoption at a special meeting of members of the district, written notice of which must be mailed to each member. Members present at the special meeting may adopt or amend any of the pro…

1. The initial board of each district shall divide its members by lot into three classes of as nearly equal size as possible. The terms of the directors in the first, second, and third classes expire on dates of the annual meetings in the first, second, and third years, respectiv…

If the board, at any time, deems the bond of a contractor insufficient either in form or as to sureties, it may require the successful bidder or contractor to furnish, within such reasonable time as the board may fix, a new bond to be approved by the board. If the contractor fail…

All contracts entered into for any work provided for in this chapter must be entered into in the name of the district and must be executed on the part of the district by the president and countersigned by the secretary. After the contract is signed by the contractor, it must be f…

A contract let under this chapter requires the work to be done pursuant to the plans and specifications on file in the office of the district, subject to the approval of the engineer acting for the district, and must provide: 1. That the board has the right to suspend the work at…

The board shall meet annually on the same day as, and immediately following, the annual meeting of participating members, and may meet at other times it determines, or upon the call of the president or any two directors. At the first meeting of the initial board following its ele…

Each district board has the power to: 1. Sue and be sued in the name of the district. 2. Exercise the power of eminent domain in the manner provided by title 32 for the purpose of acquiring and securing any rights, titles, interests, estates, or easements necessary or proper to c…

If the cost of construction or maintenance of a project does not exceed the amount provided for construction of a public improvement under section 48-01.2-02, the work may be done on a day work basis or a contract may be let without being advertised. If the cost of the constructi…

A district may issue revenue bonds, not exceeding an aggregate total outstanding of fifty million dollars, to finance construction of projects and incidental facilities authorized by this chapter. Issuance of revenue bonds must be approved by two-thirds of all of the members of t…

As soon as reasonably possible after organizing a district, the board shall file with the department of water resources copies of the plans and specifications for, and estimates of the cost of, any improvements authorized by this chapter which the board proposes to construct or a…

If the capacity of the district's facilities permits, the district may sell water by contract to any political subdivision, other district, or other person, public or private, not within the boundaries of the district.

1. Owners of real property outside any district which can be served economically by the facilities of the district may petition to be attached to the district. The petition must be filed with the department of water resources, and the department shall proceed in substantially the…

A district has no power to levy any taxes. The facilities constructed or otherwise acquired by any district, including ponds, reservoirs, pipelines, wells, deck dams, and pumping installations, the revenues obtained by the district from the sale of water, and the revenue bonds or…

If it becomes apparent that any real property included within a district but contiguous to a border cannot economically or adequately be served by the facilities of the district, the owners of the real property or the board may file with the department of water resources a petiti…

A petition may be filed with the department of water resources requesting the department to dissolve an inactive district. The petition must: 1. List all real and personal property of any kind exclusive of records, maps, plans, and files and state all of its debts and obligations…

1. Upon the filing with the department of water resources of a petition under section 61-35-20 or 61-35-21, the department shall fix a time for consideration of the petition. The department may hold a hearing on the petition. After consideration of the petition, and after the hea…

If a district is dissolved, the department of water resources shall provide for the disposition of any property owned by the district and for the apportionment of the proceeds and any other moneys belonging to the district to an adjoining district. If there is no adjoining distri…

This chapter does not exempt any district from the requirements of any other statute under which the district is required to obtain the permission or approval of, or to notify, the state water commission, or the department of environmental quality, or any other agency of this sta…

A nonprofit corporation or cooperative association established under title 10 for the specific purpose of operating a rural water system may petition the department of water resources to organize a district, in the manner provided by section 61-35-02. The signatures of the corpor…

A district organized under this title or title 10 must be fairly compensated for losses resulting from annexation by a city under chapter 40-51.2. If a district has outstanding bonds, the annexation proceedings must be in accordance with the bond resolution or trust indenture. Th…

It is the intent of the legislative assembly that potable water should be available in sufficient quality and quantity to meet citizens' needs for a healthy and safe standard of living and to promote economic growth and development. In order to meet this objective in the most eco…

1. A city planning to expand water service through annexation shall develop a city water service area plan. The city shall consult with any other water service provider, including a district, whose water service area is affected by the city's water service area plan of the establ…

Before providing a grant or loan to a district or city for a water service project in any area within the extraterritorial zoning jurisdiction of any affected city, the commission shall require that district and city to have a water service agreement. The absence of a water servi…

1. If a water service agreement between the district and the city is not executed within sixty days after the city notifies the district that a city water service area plan has been developed, the matter must be submitted to a committee for mediation. The committee must be compri…

Except as otherwise provided in this chapter, a director, officer, employee, or other personnel of the board are not liable for the district's debts or obligations and a director, officer, employee, or volunteer of the board is not personally liable in that capacity for a claim b…

Any district board, before making any contract, levying special assessments, or issuing special assessment improvement bonds or revenue bonds, or before taking any special action, may commence a special proceeding in district court by which the proceeding leading up to the making…

A district, upon resolution of the district board, may organize and participate in an association of rural water systems organized under chapter 10-33.

The acquisition, construction, reconstruction, improvement, betterment, or extension of any project and the issuance of bonds in anticipation of the collection of the revenues of such project to provide funds to pay the associated costs may be authorized by a resolution of the bo…

Refunding bonds must be authorized by resolution of the board. The resolution may be adopted at a regular or special meeting, including the meeting at which it is introduced, by the affirmative vote of a majority of the members of the board, and takes effect immediately upon adop…

In determining the cost of a project, the board may include the estimated cost of bond issuance, all engineering, inspection, fiscal, and legal expenses, any bond reserves, and the estimated interest that will accrue during construction, and within six months after completion of …

The resolution authorizing the issuance of revenue bonds or refunding bonds under this chapter or resolutions adopted after the adoption of the original resolution must prescribe: 1. The rate or rates of interest, payable semiannually. 2. Whether the bonds will be in one or more …

Revenue bonds or refunding bonds must be sold at not less than ninety-eight percent of par. The bonds may be sold at private sale without notice or at public sale after notice of the sale has been published once at least five days before the sale in a newspaper circulating in the…

Revenue bonds or refunding bonds bearing the signatures of the appropriate officers who are in office on the date of signing are valid and binding obligations notwithstanding that before the delivery and payment any or all of the persons whose signatures appear on the bonds have …

Bonds issued under this chapter and their income are exempt from taxation by the state or by any political subdivision.

Any resolution authorizing the issuance of bonds under this chapter to completely or partially finance or refinance the acquisition, construction, reconstruction, improvement, betterment, or extension of a project may contain covenants that limit the exercise of powers conferred …

Revenue and refunding bonds issued under this chapter may not be payable from or charged upon any funds other than the revenue pledged to their payment and the district issuing the bonds may not be subject to any pecuniary liability. The holder of any such bonds may not enforce p…

To adequately secure the payment of bonds and interest on the bonds, any district issuing bonds under this chapter, and the district's officers, agents, and employees shall: 1. Pay or cause to be paid punctually the principal and interest of every bond on the dates, at the places…

Subject to any contractual limitations binding upon the holders of any issue of bonds, or a trustee for the holders, including the restriction of the exercise of any remedy to a specified proportion or percentage of the holders, any holder of bonds or trustee, for the equal benef…

If the district defaults in the payment of the principal or interest on any of the bonds when due, whether at maturity or upon call for redemption, and the default continues for a period of thirty days, or if the district or the board, or officers, agents, or employees of the dis…

A receiver appointed under section 61-35-42, directly or by agents and attorneys, shall immediately enter into and upon and take possession of the entire project and may exclude from the project the district, its board, officers, agents, and employees, and all persons claiming un…

After payment of all that is due upon the bonds and any other obligations that are a charge, lien, or encumbrance on the revenues of the project under any of the terms of any covenants or agreements with bondholders, and after all defaults have been made good, the court, after no…

A receiver under this chapter acts under the direction and supervision of the appointing court and is subject to the orders of that court and may be removed by it. This chapter does not limit the jurisdiction of the court to enter orders it deems necessary for the receiver to exe…