# Title 61 — Waters

## Chapter 61-02.1 — Flood Control or Reduction Projects

### § 61-02.1-01. Legislative findings and intent - Authority to issue bonds.

1. The legislative assembly finds that some cities suffered serious economic and social
injuries due to the major flood disaster in 1997 and other recent floods and are at
significant risk for future flooding; that construction of flood control or reduction
projects is necessary for the protection of health, property, and enterprises and for the
promotion of prosperity and the general welfare of the people of the state; and that
construction of any such projects involves and requires the exercise of the sovereign
powers of the state and concerns a public purpose. It is necessary and in the public
interest the state by and through the state water commission assist in financing the
costs of constructing flood control or reduction projects through the issuance of bonds.
2. The legislative assembly finds continued construction of the southwest pipeline project
is necessary for the protection of health, property, and enterprises and for the
promotion of prosperity and the general welfare of the people of the state, involves and
requires the exercise of the sovereign powers of the state, and concerns a public
purpose. The legislative assembly also finds current funding for the southwest pipeline
project has become uncertain, and it is necessary and in the public interest the state
by and through the state water commission assist in financing the costs of continued
construction of the southwest pipeline project through the issuance of bonds.
3. The legislative assembly finds the Devils Lake basin is suffering and facing a
worsening flood disaster; construction of an outlet from Devils Lake is necessary for
the protection of health, property, and enterprises and for the promotion of prosperity
and the general welfare of the people of the state; and construction of the outlet
involves and requires the exercise of the sovereign powers of the state and concerns a
public purpose. It is necessary and in the public interest an outlet from Devils Lake be
constructed with financing from the state water commission to provide flood relief to
the Devils Lake basin.
4. The legislative assembly finds there is a critical need to develop a comprehensive
statewide water development program to serve the long-term water resource needs of
the state and its people and to protect the state's current usage of, and the state's
claim to, its proper share of Missouri River water.
5. In furtherance of the public purpose set forth in subsection 1, the state water
commission may issue bonds under chapter 61-02, and the proceeds are appropriated
for flood control projects authorized and funded in part by the federal government and
designed to provide permanent flood control or reduction to cities that suffered severe
damages as a result of the 1997 flood or other recent floods and to repay the line of
credit extended to the state water commission under S.L. 1999, ch. 535, § 4. The
commission may issue bonds for a flood control or reduction project only:
a. When:
(1) A flood control or reduction project involves a city that suffered catastrophic
flood damage requiring evacuation of the major share of its populace;
(2) A flood control or reduction project includes interstate features and requires
acquisition of private property to build permanent flood protection systems to
comply with federal flood protection standards;
(3) The governing body of a city provides a written certification to the state
water commission that the city has committed itself to contribute one-half or
more of the North Dakota project sponsor's share of the nonfederal share of
the cost to construct the project;
(4) The United States army corps of engineers issues its approval of the flood
control or reduction project;
(5) A project cooperation agreement, which contains provisions acceptable to
the department of water resources and is approved by the governor, is
entered by the state of Minnesota or one of its political subdivisions in which
the flood control or reduction project is to be constructed;

(6) A project cooperation agreement, which contains provisions acceptable to
the department of water resources and is approved by the governor, is
entered by the state or one of its political subdivisions in which the flood
control or reduction project is to be constructed;
(7) The governing body of the city has approved a financing plan for all
amounts of the nonfederal share of a flood control or reduction project in
excess of the amounts to be paid by the state; and
(8) The flood control or reduction project is designed to be cost-effective, and
any impact on residential neighborhoods is minimized in an amount
reasonably practicable as determined by the department of water resources
and approved by the governor;
b. When a flood control or reduction project in a city with a population as of the 1990
federal decennial census of at least eight thousand and not more than ten
thousand has received significant federal funding through federal grants and
funds from the United States army corps of engineers and the federal emergency
management agency; or
c. When a flood control or reduction project in a city with a population as of the 1990
federal decennial census of at least four thousand five hundred and not more
than six thousand has at least seventy percent of the land within the boundaries
of the city located within the one hundred year floodplain as designated on a flood
insurance rate map and the United States army corps of engineers issues its
approval of the flood control or reduction project.
6. In furtherance of the public purpose set forth in subsection 2, the state water
commission may issue bonds under chapter 61-02, and the proceeds are appropriated
for construction of the southwest pipeline project and to repay the line of credit
extended to the state water commission under S.L. 1999, ch. 535, § 4. The
commission may issue bonds under this chapter for continued construction of the
southwest pipeline project only when it is determined the Perkins County water system
will not make payment to the state water commission in the amount of four million five
hundred thousand dollars or on January 1, 2000, whichever occurs earlier. If the
Perkins County water system makes payment to the state water commission after
January 1, 2000, the payment must be used to pay principal and interest on bonds
issued for continued construction of the southwest pipeline project as provided in
subsection 2 of section 61-02.1-04. If the Perkins County water system does not make
payment to the state water commission, no benefits may accrue to the Perkins County
water system.
7. In furtherance of the public purposes set forth in subsections 3 and 4, the state water
commission may issue bonds under chapter 61-02 to finance the cost of one or more
of the projects identified in this section.
8. This chapter does not affect the state water commission's authority to otherwise issue
bonds pursuant to chapter 61-02 or section 61-24.3-01.
9. Notwithstanding this section, the state water commission may not issue bonds
authorized under subsection 5 for a project unless federal funds have been
appropriated for that project.
### § 61-02.1-02. Bond issuance amount limited.

Repealed by S.L. 2005, ch. 591, § 4.
### § 61-02.1-02.1. Funding - Statewide water development projects - Bond issuance

amount.
1. The priorities for the statewide water development program include municipal, rural,
and industrial projects; irrigation projects; general water management projects,
including rural flood control, snagging and clearing, channel improvement, recreation,
and planning studies; flood control projects; and weather modification projects, which
are authorized and declared to be in the public interest. The state water commission
may provide the funds necessary to construct these projects from money appropriated

to the state water commission from the resources trust fund or by issuing bonds in an
amount not to exceed sixty million dollars plus the costs of issuance of the bonds,
capitalized interest, and reasonably required reserves. The proceeds of any bonds
issued under the authority provided in this section are appropriated to the state water
commission for the purposes set forth in this section.
2. If the state water commission determines it is appropriate to do so, it may, in lieu of
issuing or in combination with the issuance of bonds pursuant to this section or section
61-02.1-01, for all or part of the state's cost share for the projects set forth in those
provisions, use funds appropriated to it from the resources trust fund.
### § 61-02.1-03. Limitation of action.

An action may not be brought or maintained in any court in this state questioning the validity
of any bonds issued as provided in this chapter unless the action is commenced within thirty
days after the adoption of the resolution of the state water commission authorizing the sale of
the bonds. The state water commission may commence a special proceeding anytime after
April 19, 1999, in and by which the constitutionality and validity of the bonds to be issued
pursuant to this chapter may be judicially examined, approved and confirmed, or disapproved
and disaffirmed. Proceedings must comply as nearly as possible with the procedure required for
declaratory judgment proceedings.
### § 61-02.1-04. Bonds payable from appropriations and other revenues.

1. Principal and interest on bonds issued for flood control or reduction projects as
provided in this chapter are payable from transfers to be made and appropriated by
the legislative assembly from the resources trust fund other than revenues from state
taxes, then from appropriations of other available revenues in the then current
biennium, and then from any other revenues the state water commission makes
available during the then current biennium for that purpose, including any federal
moneys received by the state for the construction of flood control or reduction projects
to pay bonds issued for that project. If sufficient funds from these sources are not
available, then from transfers to be made and appropriated by the legislative assembly
from the first available current biennial earnings of the Bank of North Dakota not to
exceed six million five hundred thousand dollars per biennium prorated with any other
bonds payable from transfers to be made and appropriated by the legislative assembly
from the available current biennial earnings of the Bank of North Dakota, to be credited
by the trustee to the fund established for paying principal and interest on the bonds
under a trust indenture.
2. Principal and interest on bonds issued for continued construction of the southwest
pipeline project are payable from the resources trust fund other than revenues from
state taxes, then from appropriations of other available revenues in the then current
biennium, or from payment from the Perkins County rural water system, and then from
any other revenues the state water commission makes available during the then
current biennium for that purpose, including any federal moneys received by the state
for the construction of the southwest pipeline project to pay bonds issued for the
project. If sufficient funds from these sources are not available, then from transfers to
be made and appropriated by the legislative assembly from the first available current
biennial earnings of the Bank of North Dakota not to exceed six million five hundred
thousand dollars per biennium prorated with any other bonds payable from transfers to
be made and appropriated by the legislative assembly from the available current
biennial earnings of the Bank of North Dakota, to be credited by the trustee to the fund
established for paying principal and interest on the bonds under a trust indenture.
3. Principal and interest on bonds issued under subsection 7 of section 61-02.1-01 are
payable from transfers to be made and appropriated by the legislative assembly from
the resources trust fund other than revenues from state taxes, then from
appropriations of other available revenues in the then current biennium, and then from
any other revenues the state water commission makes available during the then
current biennium for that purpose, including any federal moneys received by the state

for the construction of an outlet to Devils Lake to pay bonds issued for that project, or
financing a statewide water development program to pay bonds issued for that project.
If sufficient funds from these sources are not available, then from transfers to be made
and appropriated by the legislative assembly from the first available current biennial
earnings of the Bank of North Dakota not to exceed six million five hundred thousand
dollars per biennium prorated with any other bonds payable from transfers to be made
and appropriated by the legislative assembly from the available current biennial
earnings of the Bank of North Dakota, to be credited by the trustee to the fund
established for paying principal and interest on the bonds under a trust indenture.
4. Obligations issued as provided in this chapter do not constitute a debt, liability, or
obligation of the state of North Dakota or a pledge of the faith and credit of the state of
North Dakota, but are payable solely from the sources as described in this chapter.
5. The state water commission shall include in its submission to the governor for
inclusion by the governor in the biennial executive budget of the state for each year of
the respective biennium during the term of any bonds issued as provided in this
chapter an amount fully sufficient to pay the principal and interest required to be paid
in each year of the biennium, if any, from moneys from non-general fund sources.
Provided, that should the governor not include in the executive budget for any reason
the amounts required to be included by this section, the state water commission shall
request independently that the legislative assembly amend the executive budget
appropriation so as to include the amounts.
6. Principal and interest on bonds issued for projects authorized pursuant to section
legislative assembly from the resources trust fund other than revenues from state
taxes, then from appropriations of other available revenues in the then current
biennium, and then from any other revenues the state water commission makes
available during the then current biennium for that purpose. If sufficient funds from
these sources are not available, then from transfers to be made and appropriated by
the legislative assembly from the first available current biennial earnings of the Bank of
North Dakota not to exceed six million five hundred thousand dollars per biennium
prorated with any other bonds payable from transfers to be made and appropriated by
the legislative assembly from the available current biennial earnings of the Bank of
North Dakota, to be credited by the trustee to the fund established for paying principal
and interest on the bonds under a trust indenture.
### § 61-02.1-05. Water development trust fund.

Repealed by S.L. 2021, ch. 32, § 13.
### § 61-02.1-06. Grand Forks flood control project.

Notwithstanding any other provision of law or policy, any existing caps may not be
construed to limit access to total state funding of up to fifty-two million dollars for the Grand
Forks flood control project.
