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HF 3550

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 04:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/05/2024
1st Engrossment Posted on 02/26/2024
2nd Engrossment Posted on 03/18/2024

Current Version - 2nd Engrossment

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A bill for an act
relating to natural resources; modifying provisions for watersheds, soil and water
conservation districts, and wetland management; modifying wetland banking
program and conservation easement programs; clarifying jurisdiction for riparian
protection and water quality; extending provisions to apportion drainage repair
costs; eliminating grants to control beaver damage; modifying authority and duties
of Board of Water and Soil Resources; requiring rulemaking; amending Minnesota
Statutes 2022, sections 103B.101, subdivision 13; 103C.005; 103C.221; 103C.331,
subdivisions 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, by adding subdivisions;
103D.011, subdivision 10; 103D.201, subdivision 2; 103D.205, subdivision 4;
103D.251, subdivisions 5, 6; 103D.255; 103D.261, subdivisions 1, 2; 103D.271,
subdivision 7; 103D.301, subdivisions 1, 3; 103D.305, subdivisions 2, 5; 103D.311,
subdivision 4; 103D.315, subdivisions 9, 10; 103D.321, subdivision 1; 103D.331,
subdivision 2; 103D.335, subdivision 11; 103D.341, subdivision 1; 103D.345,
subdivision 4; 103D.355, subdivision 1; 103D.401; 103D.405, subdivision 1;
103D.535, subdivision 3; 103D.701; 103D.705, subdivision 1, by adding a
subdivision; 103D.711, subdivisions 3, 4, 6; 103D.715, subdivision 1; 103D.729,
subdivisions 1, 2; 103D.731; 103D.745, subdivision 3; 103D.805; 103D.811,
subdivision 3; 103D.901, subdivision 2; 103E.729, subdivision 9; 103F.48,
subdivision 1; 103F.511, by adding subdivisions; 103F.515; 103F.535, subdivision
5; 103G.005, subdivisions 14d, 17b; 103G.222, subdivision 1; 103G.2241,
subdivisions 1, 2, 6, 9; 103G.2242, subdivisions 2, 2a, 3; Minnesota Statutes 2023
Supplement, sections 103G.005, subdivision 19; 103G.2242, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapters 103D; 103F;
repealing Minnesota Statutes 2022, sections 103A.206; 103D.315, subdivision 4;
103D.405, subdivisions 2, 3, 4, 5, 6; 103D.411; 103D.601; 103D.605, subdivisions
1, 2, 3, 4; 103D.611; 103D.711, subdivision 1; 103F.511, subdivision 8b; 103F.950;
Minnesota Statutes 2023 Supplement, section 103D.605, subdivision 5; Minnesota
Rules, parts 8400.3000; 8400.3030; 8400.3110; 8400.3210; 8400.3260; 8400.3300;
8400.3400; 8400.3460; 8400.3600; 8400.3610; 8400.3630; 8400.3700; 8400.3730;
8400.3800; 8400.3830; 8400.3930.

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

Section 1.

Minnesota Statutes 2022, section 103B.101, subdivision 13, is amended to read:


Subd. 13.

Drainage stakeholder coordination.

new text begin (a) new text end The Board of Water and Soil
Resources shall work with drainage stakeholders to foster mutual understanding and provide
recommendations for drainage system management and related water management, including
recommendations for updating the drainage law in chapter 103Enew text begin , the Minnesota Public
Drainage Manual,
new text end and other related provisions. The board may convene informal working
groups or work teams to develop information, education, and recommendations.

new text begin (b) For the purposes of this subdivision, the Minnesota Public Drainage Manual is a
publication that is prepared by and adopted by the board and that includes explanations,
procedures, and guidance consistent with and supplementing the provisions of chapter 103E.
The manual must include best management practices and be prepared in consultation with
drainage stakeholders according to paragraph (a) for use by drainage authorities in carrying
out statutory duties.
new text end

Sec. 2.

Minnesota Statutes 2022, section 103C.005, is amended to read:


103C.005 SOIL AND WATER CONSERVATION POLICY.

Maintaining and enhancing the quality of soil and water for the environmental and
economic benefits they produce, preventing degradation, and restoring degraded soil and
water resources of this state contribute greatly to the health, safety, economic well-being,
and general welfare of this state and its citizens. Land occupiers have the responsibility to
implement practices that conserve the soil and water resources of the state. Soil and water
conservation measures implemented on private lands in this state provide benefits to the
general public by reducing erosion, sedimentation, siltation, water pollution, and damages
caused by floods. The soil and water conservation policy of the state is to encourage land
occupiers to conserve soil, water, and the natural resources they support through the
implementation of practices that:

(1) control or prevent erosion, sedimentation, siltation, and related pollution in order to
preserve natural resources;

(2) ensure continued soilnew text begin health, as defined under section 103C.101, subdivision 10a,
and soil
new text end productivity;

(3) protect water quality;

(4) prevent impairment of dams and reservoirs;

(5) reduce damages caused by floods;

(6) preserve wildlife;

(7) protect the tax base; and

(8) protect public lands and waters.

Sec. 3.

Minnesota Statutes 2022, section 103C.221, is amended to read:


103C.221 CHANGING LOCATION OF PRINCIPAL OFFICE.

The location of the principal office of the district deleted text begin boarddeleted text end may be changed deleted text begin with the approval
of the state board
deleted text end after the adoption of a resolution by a majority of the district board stating
the new locationnew text begin within the districtnew text end and by filing a certified copy of the resolution with the
secretary of state.

Sec. 4.

Minnesota Statutes 2022, section 103C.331, subdivision 3, is amended to read:


Subd. 3.

Surveys, investigations, and research.

A district may conduct surveys,
investigations, and research to identify the problems and preventive practices specified in
section deleted text begin 103A.206deleted text end new text begin 103C.005new text end . deleted text begin To avoid duplication of research activities, no district shall
initiate any research program except in cooperation with a state agency or an agency of the
United States.
deleted text end

Sec. 5.

Minnesota Statutes 2022, section 103C.331, subdivision 5, is amended to read:


Subd. 5.

Demonstration projects.

A district may conduct demonstration projects within
the district on lands owned or administered by a state agency, with the cooperation of the
administering agency, and on other lands with the consent of the land occupier, to
demonstrate practices which implement the state policy specified in section deleted text begin 103A.206deleted text end new text begin
103C.005
new text end .

Sec. 6.

Minnesota Statutes 2022, section 103C.331, subdivision 6, is amended to read:


Subd. 6.

Implementing practices.

A district may implement any necessary practices
within the district, including structural measures and works of improvement deleted text begin for any purpose
specified in section 103A.206, methods of cultivation, the use of vegetation, and changes
in use of land
deleted text end new text begin to achieve the purposes of this chapter and fulfill other statutory responsibilitiesnew text end ,
on:

(1) lands acquired by the district;

(2) lands owned or administered by a deleted text begin statedeleted text end new text begin publicnew text end agency, with the cooperation of the
administering agency; and

(3) other lands, with the consent of the land occupier.

Sec. 7.

Minnesota Statutes 2022, section 103C.331, subdivision 7, is amended to read:


Subd. 7.

Implementing soil and water conservation policy.

A district may cooperate
or enter into agreements with and furnish financial or other aid to a land occupier or
appropriate agencydeleted text begin ,deleted text end to implement deleted text begin the policy specified in section 103A.206, within the districtdeleted text end new text begin
this chapter and fulfill other statutory responsibilities
new text end , subject to conditions the district board
determines deleted text begin isdeleted text end new text begin arenew text end necessary.

Sec. 8.

Minnesota Statutes 2022, section 103C.331, subdivision 8, is amended to read:


Subd. 8.

Acquiring and maintaining property.

A district may acquire any rights or
interests in real or personal property by option, purchase, exchange, lease, gift, grant, bequest,
devise, or otherwise. It may maintain, operate, administer, and improve any properties
acquired. It may receive income from the properties and expend the income to implement
this chapter and deleted text begin sections 103F.401 to 103F.455deleted text end new text begin fulfill other statutory responsibilitiesnew text end . It
may sell, lease, or otherwise dispose of any of its property or interests.

Sec. 9.

Minnesota Statutes 2022, section 103C.331, subdivision 9, is amended to read:


Subd. 9.

Using machinery and supplies.

A district may make available, on terms it
deleted text begin shall prescribedeleted text end new text begin prescribesnew text end , to land occupiers within the districtdeleted text begin ,deleted text end agricultural and engineering
machinery and equipment, fertilizer, seeds, deleted text begin anddeleted text end seedlings, and other material or equipment
deleted text begin which will assistdeleted text end new text begin that helpsnew text end land occupiers deleted text begin todeleted text end implement practices on their land deleted text begin specified in
section 103C.005
deleted text end new text begin to implement this chapter and fulfill other statutory responsibilitiesnew text end .

Sec. 10.

Minnesota Statutes 2022, section 103C.331, subdivision 10, is amended to read:


Subd. 10.

Constructing improvements.

A district may construct, install, improve,
maintain, and operate structures and works necessary or convenient to perform an operation
authorized under this chapter and deleted text begin sections 103F.401 to 103F.455deleted text end new text begin other statutory authoritynew text end .

Sec. 11.

Minnesota Statutes 2022, section 103C.331, subdivision 11, is amended to read:


Subd. 11.

Comprehensive plan.

(a) A district may develop and revise a comprehensive
plandeleted text begin , specifying practicesdeleted text end to deleted text begin implement the state policy specified in section 103A.206deleted text end deleted text begin ,
including
deleted text end new text begin fulfill statutory responsibilities. The plan may includenew text end :

(1) the construction, maintenance, and operation of structural measures;

(2) methods of cultivation;

(3) the use of vegetation;

(4) cropping programs;

(5) mechanical practices;

(6) changes in use of land;

(7) water quality improvement practices;

(8) other land use, soil erosion reduction, and agricultural practices; deleted text begin and
deleted text end

(9) related technical standards and specificationsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (10) other practices, projects, programs, and systems to fulfill statutory responsibilities.
new text end

deleted text begin (b) The plan shall include a classification of the soil types within the district as determined
by the Minnesota Cooperative Soil Survey.
deleted text end

deleted text begin (c) The plan must identify the areas within the district where erosion, sedimentation,
and related water quality problems appear most in need of control methods.
deleted text end

deleted text begin (d)deleted text end new text begin (b)new text end The plan deleted text begin shalldeleted text end new text begin mustnew text end be consistent with the statewide deleted text begin framework water resources
plan, the statewide water quality management plan, and the state board's soil and water
program plan
deleted text end new text begin frameworks as provided in chapter 103Bnew text end .

deleted text begin (e) Each district that applies for cost-sharing funds under section 103C.501 shall submit
to the state board an annual work plan for the high priority erosion, sedimentation, and water
quality problems in the district. The work plan shall be prepared as required by the rules of
the state board. In preparing the annual work plan, the district shall actively identify and
seek out land occupiers with high priority erosion problems who have not participated in
cost-sharing contracts and encourage their participation in programs to control their erosion
problems.
deleted text end

new text begin (c) At least 60 days before submitting the plan to the state board, the district must hold
a public hearing on the plan and provide notice of the hearing via the district's website. The
district must give notice of the hearing to the county and all affected cities and towns. To
allow for public input, the district must also administer a review and comment period of at
least 30 days before submitting the plan.
new text end

new text begin (d) The district must submit the plan to the state board for review and approval before
adopting the plan at a district meeting.
new text end

Sec. 12.

Minnesota Statutes 2022, section 103C.331, subdivision 12, is amended to read:


Subd. 12.

Assuming other conservation projects.

(a) A district may take over by
purchase, lease, or otherwise, and may improve, maintain, operate, and administer a soil or
water conservation, erosion-control, erosion-prevention, water quality improvement,
watershed protection, flood prevention, or flood control project in its boundaries undertaken
by the United States or by a deleted text begin statedeleted text end new text begin publicnew text end agency.

(b) A district may accept donations, gifts, grants, or contributions in money, services,
materials, or otherwise from the United States, a deleted text begin statedeleted text end new text begin publicnew text end agency, or other source to
accomplish deleted text begin the authorization in this sectiondeleted text end new text begin statutory responsibilitiesnew text end . A deleted text begin boarddeleted text end new text begin districtnew text end may
enter into a contract or agreement necessary or appropriate to accomplish the transfer. A
deleted text begin boarddeleted text end new text begin district new text end may use or expend money, services, materials, or other things to accomplish
an authorized purpose.

Sec. 13.

Minnesota Statutes 2022, section 103C.331, subdivision 13, is amended to read:


Subd. 13.

Authority to sue and contract.

A district may sue and be sued in its name,
have perpetual succession unless terminated as provided in section 103C.225, make and
execute contracts and other instruments necessary or convenient to the exercise of its powers,
and make, amend, or repeal rules and regulations consistent with this chapter and deleted text begin sections
103F.401 to 103F.455
deleted text end new text begin other statutory authoritynew text end .

Sec. 14.

Minnesota Statutes 2022, section 103C.331, subdivision 14, is amended to read:


Subd. 14.

Compensation for work or projects.

As a condition for extending benefits
for the performance of worknew text begin , including operations and maintenance,new text end upon lands not owned
or administered by a deleted text begin statedeleted text end new text begin publicnew text end agency or the district, the deleted text begin supervisorsdeleted text end new text begin districtnew text end may require
compensation or contributions in money, services, materials, or otherwise, commensurate
with the cost or reasonable value of the operations or work conferring the benefits.

Sec. 15.

Minnesota Statutes 2022, section 103C.331, subdivision 15, is amended to read:


Subd. 15.

Agreements fornew text begin state ornew text end federal assistance.

(a) A district may deleted text begin submit an
application
deleted text end new text begin apply fornew text end and enter into an agreement or contract deleted text begin with the secretary of agriculture
or other designated authority
deleted text end to obtain or usenew text begin state ornew text end federalnew text begin funding ornew text end assistance under
any law providing fornew text begin state ornew text end federalnew text begin funding ornew text end assistance for an authorized purpose of the
district.

(b) A district may:

(1) acquire deleted text begin without cost to the federal governmentdeleted text end any land, easements, or rights-of-way
needed in connection with works of improvement installed with federalnew text begin or statenew text end assistancenew text begin
or funding
new text end ;

(2) assume the proportionate share of the cost of installing works of improvement
involvingnew text begin state ornew text end federalnew text begin funding ornew text end assistance deleted text begin determined by the secretary or other
designated authority to be
deleted text end new text begin that isnew text end equitable in consideration of anticipated benefits from the
improvements;

(3) deleted text begin make arrangements satisfactory to the secretary or other authoritydeleted text end new text begin arrangenew text end to defray
costs of operating and maintaining works of improvement in accordance with prescribed
regulations;

(4) acquire or provide assurance that land occupiers have acquired the water rights and
other rights, pursuant to state law, needed to install, maintain, and operate the works of
improvement; and

(5) obtain agreements to carry out recommended soil and water conservation measures
and prepare farm plans for owners of not less than 50 percent or other required percentage
of the lands situated in a drainage area above a retention reservoir installed with federal
assistance, as prescribed by applicable federal law, and may do any other acts necessary to
secure and use federal aid.

Sec. 16.

Minnesota Statutes 2022, section 103C.331, subdivision 16, is amended to read:


Subd. 16.

Budget.

The district deleted text begin boarddeleted text end shall annually present a budget consisting of an
itemized statement of district expenses for the ensuing calendar year to the boards of county
commissioners of the counties in which the district is located. The county boards may levy
an annual tax on all taxable real property in the district for the amount that the boards
determine is necessary to meet the requirements of the district. The amount levied shall be
collected and distributed to the district as prescribed by chapter 276. The amount may be
spent by the district deleted text begin boarddeleted text end for a district purpose authorized by law.

Sec. 17.

Minnesota Statutes 2022, section 103C.331, is amended by adding a subdivision
to read:


new text begin Subd. 21. new text end

new text begin Water and soil resource management. new text end

new text begin A district may initiate, construct,
operate, and maintain water and soil resource management practices, projects, programs,
and systems within the boundaries of the district and use, supplement, or otherwise coordinate
contributions from state, federal, Tribal, or local governments and private entities for similar
purposes.
new text end

Sec. 18.

Minnesota Statutes 2022, section 103C.331, is amended by adding a subdivision
to read:


new text begin Subd. 22. new text end

new text begin Loans. new text end

new text begin The district may obtain loans when the district determines it is prudent
to accomplish its statutory duties.
new text end

Sec. 19.

Minnesota Statutes 2022, section 103D.011, subdivision 10, is amended to read:


Subd. 10.

Engineer.

"Engineer" means deleted text begin thedeleted text end new text begin a licensed professionalnew text end engineernew text begin as described
in section 326.02 and
new text end designated by the managers to act as engineer.new text begin The board of managers
or engineer may work in cooperation with other licensed professionals as described in
section 326.02 in the planning and design of a watershed district project.
new text end

Sec. 20.

Minnesota Statutes 2022, section 103D.201, subdivision 2, is amended to read:


Subd. 2.

Specific purposes.

A watershed district may be established for new text begin and use its
powers to advance
new text end any of the following purposes:

(1) to control or alleviate damage from floodwatersnew text begin to promote climate resiliencenew text end ;

(2) to new text begin protect, new text end improve deleted text begin stream channelsdeleted text end new text begin , or restore watercourses and water basinsnew text end for
drainage, navigation, new text begin water quality, flood mitigation, new text end and any other public purpose;

(3) to deleted text begin reclaimdeleted text end new text begin manage impacts to, restore,new text end or deleted text begin filldeleted text end new text begin replacenew text end wet and overflowed land;

(4) to provide a water supply for irrigation;

(5) to regulatenew text begin and conservenew text end the flow of deleted text begin streams and conserve the streams' waterdeleted text end new text begin
watercourses
new text end ;

deleted text begin (6) to divert or change all or part of watercourses;
deleted text end

deleted text begin (7)deleted text end new text begin (6)new text end to provide or conserve water supply for domestic, industrial, recreational,
agricultural, or other public use;

deleted text begin (8)deleted text end new text begin (7)new text end to provide for sanitation and public healthdeleted text begin ,deleted text end and regulate the use of streams, ditches,
or watercourses to dispose of waste;

deleted text begin (9)deleted text end new text begin (8)new text end to repair, improve, relocate, modify, consolidate, and abandon all or part of
drainage systems within a watershed district;

deleted text begin (10)deleted text end new text begin (9)new text end to control or alleviate soil erosion and siltation of watercourses or water basins;

deleted text begin (11)deleted text end new text begin (10)new text end to regulate improvements by riparian property owners of the beds, banks, and
shores of lakes, streams, and wetlands for preservation and beneficial public use;

deleted text begin (12)deleted text end new text begin (11)new text end to provide for hydroelectric power generation;

deleted text begin (13)deleted text end new text begin (12)new text end to protect or enhance the water quality in watercourses or water basins; deleted text begin and
deleted text end

deleted text begin (14)deleted text end new text begin (13)new text end to provide for the protection of groundwater and regulate its use to preserve it
for beneficial purposesdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (14) to otherwise manage and protect surface waters and groundwaters for any beneficial
purpose.
new text end

Sec. 21.

Minnesota Statutes 2022, section 103D.205, subdivision 4, is amended to read:


Subd. 4.

Filing establishment petitions.

The petitioners must file a copy of the
establishment petition with the auditors of the counties affected by the proposed watershed
districtdeleted text begin ,deleted text end new text begin and new text end the deleted text begin commissioner, and thedeleted text end director. The original establishment petition, with
a signed statement of delivery or receipt for each of the establishment petitions submitted
to the auditors of affected countiesdeleted text begin , the commissioners,deleted text end and the deleted text begin directorsdeleted text end new text begin directornew text end , must be
filed with the board.

Sec. 22.

Minnesota Statutes 2022, section 103D.251, subdivision 5, is amended to read:


Subd. 5.

Petition signatures.

(a) A petition for a watershed boundary change must be
signed by:

(1) at least one-half of the counties within the proposed watershed district if the boundary
change were adopted;

(2) counties having at least 50 percent of the area within the proposed watershed district
if the boundary change were adopted;

(3) a majority of the cities within the proposed watershed district if the boundary change
were adopted;

(4) at least 50 resident owners new text begin or 50 percent of resident owners, whichever is less, new text end in
the deleted text begin proposed watershed district if thedeleted text end new text begin area to be added or removed by the proposednew text end boundary
change new text begin if it new text end were adopted, excluding resident owners within the corporate limits of a city,
if the city has signed the petition; or

(5) the managers of a watershed district affected by the proposed boundary change.

(b) The managers must pass a resolution authorizing the boundary change before the
managers sign a petition for a boundary change.

Sec. 23.

Minnesota Statutes 2022, section 103D.251, subdivision 6, is amended to read:


Subd. 6.

Hearing.

The board must set a time and location for a hearing and give notice
of the hearing in the same manner as an establishment hearing.new text begin The board must also give
notice of the hearing by mail at least ten days before the hearing to the watershed district
affected by the proposed boundary change.
new text end If a petition for a boundary change involves a
common boundary of two or more watershed districts, the board must determine the
watershed district where the hearing will be held.

Sec. 24.

Minnesota Statutes 2022, section 103D.255, is amended to read:


103D.255 WITHDRAWING TERRITORY.

Subdivision 1.

Petition.

(a) Proceedings to withdraw territory from an existing watershed
district must be initiated by a petition filed with the board.

(b) new text begin A majority of the managers may file a petition for withdrawal. Otherwise, new text end the required
signatures on a petition for withdrawal are the same as prescribed for an establishment
petition, but the percentages must be calculated only with reference to the territory that is
proposed to be withdrawn from the watershed district.

(c) The petition must state that:

(1) the territory described has not received or will not receive any benefits from the
operation of the watershed districts;

(2) the watershed district can perform the functions for which it was established without
the inclusion of the territory; and

(3) the territory is not, in fact, a part of the watershed.

(d) The petition must request the release of the described territory from the watershed
district.

(e) The petition must be served on the board and any affected watershed district, and
the board shall proceed as prescribed for an establishment petition. The requirements for
notices and public hearings are as prescribed for the establishment petition.new text begin The board must
also give notice of the hearing by mail at least ten days before the hearing to each watershed
district affected by the proposed withdrawal of territory.
new text end

Subd. 2.

Board's order of withdrawal.

(a) After the hearingnew text begin ,new text end the board may issue an
order releasing the territory, or a part of the territory, as described in the petition, if the
board determines that:

(1) the territory described in the petition has not received and will not receive any benefit
from the operation of the watershed district;

(2) the watershed district can perform the functions for which it was established without
the inclusion of the territory; and

(3) the territory is not, in fact, a part of the watershed.

(b) Property may not be released that has been determined subject to benefits or damages
for a project previously constructed.

(c) Property released remains liable for the proportionate share of any indebtedness
existing at the time of the order. Levies on the property released continue in force until fully
paid.

(d) If the board determines that the order prescribing the distribution of managers should
be amended following the withdrawal of any territory, the board may direct redistribution
of managers in the order authorizing the withdrawal.

new text begin (e) The board must file a certified copy of the findings and order of withdrawal with the
secretary of state, the auditor of each county affected by the watershed district, the
commissioner, and the watershed district.
new text end

Sec. 25.

Minnesota Statutes 2022, section 103D.261, subdivision 1, is amended to read:


Subdivision 1.

Petition.

(a) Proceedings to enlarge an existing watershed district must
be initiated by a petition filed with the board. new text begin A majority of the managers may file a petition.
Otherwise,
new text end the required signatures on a petition to enlarge are the same as for an
establishment petition, but the percentages must be calculated only with reference to the
territory that is proposed to be added to the watershed district. The petition must:

(1) state that the area to be added is contiguous to the existing watershed district;

(2) state that the area can be feasibly administered by the managers of the existing
watershed district;

(3) state reasons why adding the area to the existing watershed district would be
conducive to the public health and welfare;

(4) include a map of the affected area;

(5) state the name of the proposed enlarged watershed district, if other than that of the
existing watershed district; and

(6) state a request for the addition of the proposed territory.

(b) The petition must be served on the board and affected watershed districts, and the
board must proceed as prescribed for an establishment petition.

(c) The requirement of notice and public hearings is as prescribed for the establishment
petition.new text begin The board must also give notice of the hearing by mail at least ten days before the
hearing to each watershed district affected by the proposed enlargement.
new text end

Sec. 26.

Minnesota Statutes 2022, section 103D.261, subdivision 2, is amended to read:


Subd. 2.

Board order.

(a) After the hearing, if the board determines that the enlargement
of the watershed district as asked for in the petition would be for the public welfare and
public interest and the purpose of this chapter would be served, the board shall, by making
findings and an order, enlarge the watershed district and file a certified copy of the findings
and order with the secretary of statenew text begin , the auditor of each county affected by the watershed
district, the director, and the watershed district
new text end .

(b) The name of the watershed district may be changed by order of the board if requested
in the petition to enlarge the watershed district.

Sec. 27.

Minnesota Statutes 2022, section 103D.271, subdivision 7, is amended to read:


Subd. 7.

Termination hearing order.

When the board determines a termination petition
has been filed that meets the requirements of subdivisions 4 and 5, the board must, by orderdeleted text begin ,
set a time by
deleted text end new text begin withinnew text end 35 days deleted text begin afterdeleted text end new text begin ofnew text end its determinationnew text begin , set a timenew text end and deleted text begin adeleted text end location within the
watershed district for a termination hearingnew text begin or, if publicly accessible facilities are not
available within the watershed district, at the nearest suitable publicly accessible facility.
The board must have each manager of the watershed district personally served with a copy
of the order
new text end .

Sec. 28.

Minnesota Statutes 2022, section 103D.301, subdivision 1, is amended to read:


Subdivision 1.

More than one affected county.

If more than one county is affected by
a watershed district, the board must provide that managers are distributed by residence
among the counties affected by the watershed districtnew text begin and in consideration of the counties'
portion of the land area and net tax capacity of the watershed
new text end .

Sec. 29.

Minnesota Statutes 2022, section 103D.301, subdivision 3, is amended to read:


Subd. 3.

Redistribution.

(a) After ten years from the establishment of the watershed
district, the county board of commissioners of a county affected by the watershed district
may petition the board to redistribute the managers. After holding a public hearing on
redistributing the managers, the board may redistribute the managers among the counties
affected by the watershed district if the redistribution is in accordance with the policy and
purposes of this chapter.

(b) A petition for the redistribution of managers may not be filed with the board more
often than once in ten years.

(c) If more than one county is affected by a watershed district, the board must distribute
the one-, two-, and three-year terms among counties affected by the watershed district.new text begin The
board may redistribute the three-year terms upon redistributing the managers among the
affected counties or upon increasing the number of managers.
new text end

Sec. 30.

Minnesota Statutes 2022, section 103D.305, subdivision 2, is amended to read:


Subd. 2.

Petition signatures.

The petition to increase the number of managers must
request the increase and be signed by one or more of the following groups:

(1) one-half or more of the counties within the watershed district;

(2) counties with 50 percent or more of the area within the watershed district;

(3) a majority or greater number of the cities within the watershed district;

(4) 50 or more resident owners residing in the watershed district, excluding resident
owners within the corporate limits of a city if the city has signed the petition; or

(5) the managers of the watershed districtnew text begin , by resolution adopted by a majority of the
managers of the watershed district
new text end .

Sec. 31.

Minnesota Statutes 2022, section 103D.305, subdivision 5, is amended to read:


Subd. 5.

Hearing.

(a) If the board determines at the hearing that an increase in the
number of managers would benefit the public welfare, public interest, and the purpose of
this chapter, the board must increase the number of managers.new text begin The board must make findings
and an order accordingly and file a certified copy of the findings and order with the secretary
of state, the auditor of each county affected by the watershed district, the director, and the
watershed district. The board's order must prescribe the terms for the new managers to be
appointed by the designated county board or boards.
new text end

(b) If the watershed district affects more than one county, the board, by order, must
direct the distribution of the managers among the affected counties.

Sec. 32.

Minnesota Statutes 2022, section 103D.311, subdivision 4, is amended to read:


Subd. 4.

Record of appointed managers.

A record of all appointments made under this
section must be filed with the county auditor of each county affected by the watershed
district, the secretary new text begin or administrator new text end of the board of managers, and the Board of Water
and Soil Resources.

Sec. 33.

Minnesota Statutes 2022, section 103D.315, subdivision 9, is amended to read:


Subd. 9.

First meeting of managers.

(a) Within deleted text begin tendeleted text end new text begin 30new text end days after the first board of
managers has received notice by personal service of their selection, the managers must meet
at the watershed district's principal place of business.

(b) At the first meeting, the managers must take the oath under subdivision 1, provide
a bond under subdivision 2, elect officers under subdivision 3, and appoint an advisory
committee under section 103D.331.

Sec. 34.

Minnesota Statutes 2022, section 103D.315, subdivision 10, is amended to read:


Subd. 10.

Meetings.

The managers shall meet annually and at other necessary times to
transact the business of the watershed district. A meeting may be called at any time at the
request of any managernew text begin according to chapter 13Dnew text end . deleted text begin When a manager requests a meeting, the
secretary of the watershed district must mail a notice of the meeting to each member at least
eight days before the meeting.
deleted text end

Sec. 35.

Minnesota Statutes 2022, section 103D.321, subdivision 1, is amended to read:


Subdivision 1.

Unavailable public facilities.

If deleted text begin publicdeleted text end new text begin publicly accessiblenew text end facilities are
not available for a watershed district's principal place of business within the watershed
district, the board shall determine and designate the nearest suitable deleted text begin publicdeleted text end new text begin publicly accessiblenew text end
facility as the watershed district's principal place of business.new text begin The principal place of business
is the location of the watershed district's office or, if the district has no office, the location
of regular meetings of the board of managers.
new text end

Sec. 36.

Minnesota Statutes 2022, section 103D.331, subdivision 2, is amended to read:


Subd. 2.

Members.

(a) The advisory committee consists of at least five members. If
practicable, the advisory committee members selected should include a representative from
each soil and water conservation district, a representative of each county, a member of a
sporting organization, deleted text begin anddeleted text end a member of a farm organizationnew text begin , and a representative of each
federally recognized Tribal government within the watershed district
new text end . Other advisory
committee members may be appointed at the discretion of the managers. The members must
be residents of the watershed district, except representatives from new text begin Tribal nations, new text end soil and
water conservation districtsnew text begin ,new text end and counties, and serve at the pleasure of the managers.

(b) In addition, the managers may appoint other interested and technical persons who
may or may not reside within the watershed district to serve at the pleasure of the managers.

Sec. 37.

Minnesota Statutes 2022, section 103D.335, subdivision 11, is amended to read:


Subd. 11.

Acquiring new text begin or disposing of new text end property.

The managers may acquire by gift,
purchase, taking under the procedures of this chapter, or by the power of eminent domain,
necessary real and personal property.new text begin The managers may dispose of real or personal property
when the property no longer serves a purpose of the watershed district.
new text end The watershed
district may acquire property outside the watershed district where necessary for a water
supply system.

Sec. 38.

Minnesota Statutes 2022, section 103D.341, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

The managers must adopt rules deleted text begin to accomplish the purposes
of this chapter and
deleted text end to implement the new text begin regulatory new text end powers of the managers.

Sec. 39.

Minnesota Statutes 2022, section 103D.345, subdivision 4, is amended to read:


Subd. 4.

Bondnew text begin ; financial assurancenew text end .

The managers may require an applicant for a permit
to file a bond new text begin or other form of financial assurance new text end with the managers in an amount set by
the managers and conditioned on performance by the applicant of authorized activities in
conformance with the terms of the permit.

Sec. 40.

Minnesota Statutes 2022, section 103D.355, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

The managers must have an annual audit completed of
the books and accounts of the watershed district. The annual audit may be made by a private
certified public accountant or by the state auditor.new text begin The managers must submit the annual
audit report to the board and the state auditor's office within 180 days of the end of the
watershed district's fiscal year.
new text end

Sec. 41.

new text begin [103D.357] REMOVAL OF MANAGERS.
new text end

new text begin After being provided an opportunity for a hearing before the appointing authority, a
manager of a watershed district may be removed from the position by a majority vote of
the appointing authority before term expiration for violation of a code of ethics of the
watershed district or appointing authority or for malfeasance, nonfeasance, or misfeasance.
new text end

Sec. 42.

Minnesota Statutes 2022, section 103D.401, is amended to read:


103D.401 WATERSHED MANAGEMENT PLAN.

Subdivision 1.

Contents.

(a) The managers must adopt new text begin and maintain new text end a watershed
management plan deleted text begin for any or all ofdeleted text end new text begin to exercise the powers of a watershed district and fulfillnew text end
the purposes for which a watershed district may be established. The watershed management
plan must give a narrative description of existing water and water-related problems within
the watershed district, possible solutions to the problems, and the general objectives of the
watershed district. The watershed management plan must also conform closely with
watershed management plan guidelines as adopted and amended from time to time by the
Board of Water and Soil Resources.new text begin The authority to adopt and maintain a watershed
management plan under this section is retained notwithstanding a watershed district's
participation in a comprehensive watershed management planning program under section
103B.801.
new text end

(b) The watershed management plan may include a separate section on proposed projects.
deleted text begin If the watershed district is within the metropolitan area, the separate section of proposed
projects or petitions for projects to be undertaken according to the watershed management
plan is a comprehensive plan of the watershed district for purposes of review by the
Metropolitan Council under section 473.165.
deleted text end

Subd. 2.

deleted text begin Reviewdeleted text end new text begin Reviewing draft plannew text end .

The managers must send a copy of the proposed
watershed management plan new text begin for a 60-day review and comment period new text end to the county auditor
of each county affected by the watershed district, the board, deleted text begin the commissioner,deleted text end the director,
the governing body of each municipality affected by the watershed district, and soil and
water conservation districts affected by the watershed district. deleted text begin For a watershed district within
the metropolitan area, a copy of the proposed watershed management plan must also be
submitted to the Metropolitan Council.
deleted text end new text begin At least ten days before the public hearing, the
watershed district must respond in writing to all comments by the reviewing parties.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Director's and Metropolitan Council's recommendations. deleted text end

deleted text begin After receiving
the watershed management plan, the director and the Metropolitan Council must review
and make recommendations on the watershed management plan. By 60 days after receiving
the plan, the director and the Metropolitan Council must send their recommendations on
the watershed management plan to the board and a copy to the managers of the watershed
district, the county auditor of each county affected by the watershed district, the governing
bodies of all municipalities affected by the watershed district, and soil and water conservation
districts affected by the watershed district. The board may extend the period for review and
transmittal of the recommendations.
deleted text end

Subd. 4.

Hearing notice.

(a) The deleted text begin boarddeleted text end new text begin managers new text end must give notice and hold a deleted text begin watershed
management plan
deleted text end hearing on the proposed watershed management plan deleted text begin by 45deleted text end new text begin no later than
60
new text end days after deleted text begin receiving the director's and Metropolitan Council's recommendationsdeleted text end new text begin the close
of the 60-day review and comment period
new text end .

(b) The deleted text begin boarddeleted text end new text begin managersnew text end must give notice of the deleted text begin watershed management plandeleted text end hearing by
publication in a legal newspaper that is published in counties affected by the watershed
district. The last publication must occur at least ten days before the deleted text begin watershed management
plan
deleted text end hearing.

(c) The deleted text begin boarddeleted text end new text begin managersnew text end must give notice of the deleted text begin watershed management plandeleted text end hearing by
mail to the auditors of counties and to the chief executive officials of municipalities affected
by the watershed district.

(d) The notice must include:

(1) a statement that a copy of the proposed watershed management plan has been filed
with the board, deleted text begin the Metropolitan Council, where applicable,deleted text end the auditors of counties affected
by the proposed watershed district, the commissioner, the director, the governing body of
each municipality affected by the watershed district, and the soil and water conservation
districts affected by the watershed district;

(2) a general description of the purpose of the watershed district;

(3) a general description of the property included in the watershed district;

(4) a general description of the proposed watershed management plan;

(5) the date, time, and location of the hearing; and

(6) a statement that all persons affected or interested in the watershed district may attend
and give statements at the deleted text begin watershed management plandeleted text end hearing.

Subd. 5.

Board approval.

new text begin (a) new text end After the watershed management plan hearing, the deleted text begin boarddeleted text end new text begin
managers
new text end mustnew text begin submit the draft plan, any amendments to the draft plan, all written comments
received on the draft plan, a record of the public hearing, and a summary of changes
incorporated as a result of the review process to the board for final review. The board must
review the plan for conformance with this chapter.
new text end

new text begin (b) The board must not prescribe a plan but may disapprove all or parts of a plan that
the board finds does not conform with this chapter. The board must complete its review
within 90 days and
new text end , by order, deleted text begin prescribe anddeleted text end approvenew text begin , disapprove, or approve with conditionsnew text end
a watershed management plan for the watershed district. deleted text begin The board must send a copy of the
order and approved watershed management plan to the managers, the county board of each
county affected by the watershed district, the commissioner, the director, the Metropolitan
Council, where applicable, the governing body of each municipality affected by the watershed
district, and soil and water conservation districts affected by the watershed district. The
watershed management plan approved by the board is the watershed management plan for
the watershed district.
deleted text end

new text begin (c) A watershed district may seek reconsideration of a decision of the board concerning
its plan or capital improvement program within 60 days of receiving the decision by filing
an appeal to the board's dispute resolution committee established under section 103B.101,
subdivision 10. The dispute resolution committee must complete its reconsideration and
make a recommendation to the board, which must issue a final decision within 90 days of
the appeal.
new text end

new text begin Subd. 6. new text end

new text begin Adoption. new text end

new text begin Within 120 days of the board's order, the managers must adopt a
plan in compliance with the board's order. The managers must send a copy of the order and
approved watershed management plan to the board, the county board of each county affected
by the watershed district, the commissioner, the director, the governing body of each
municipality affected by the watershed district, and soil and water conservation districts
affected by the watershed district. The watershed management plan approved by the board
and adopted by the managers is the watershed management plan for the watershed district.
new text end

new text begin Subd. 7. new text end

new text begin Amendments. new text end

new text begin (a) To the extent and in the manner required by the adopted
plan, all amendments to the adopted plan must be submitted to the towns, cities, counties,
and state review agencies and to the board for review according to subdivisions 2 to 5,
except when the proposed amendments are determined to be minor amendments according
to the following requirements:
new text end

new text begin (1) the board has either agreed that the amendments are minor or failed to act within
five working days of the end of the comment period specified in clause (2), unless an
extension is mutually agreed upon with the watershed district;
new text end

new text begin (2) the watershed district has sent copies of the amendments to the plan review authorities
for review and comment, allowing at least 30 days for receipt of comments; has indicated
that the minor amendment procedure is being followed; and has directed that comments be
sent to the watershed district and the board;
new text end

new text begin (3) no county board has filed an objection to the amendments with the watershed district
and the board within the comment period specified in clause (2), unless an extension is
mutually agreed upon by the county and the watershed district; and
new text end

new text begin (4) the watershed district has held a public meeting to explain the amendments and
published a legal notice of the meeting twice, at least seven days and 14 days before the
date of the meeting.
new text end

new text begin (b) The following changes to a plan do not require an amendment, but must be distributed
to agencies and local units of government receiving an adopted plan under subdivision 6:
new text end

new text begin (1) formatting or reorganizing the plan;
new text end

new text begin (2) revising a procedure meant to streamline administration of the plan;
new text end

new text begin (3) clarifying existing plan goals or policies;
new text end

new text begin (4) including additional data not requiring interpretation;
new text end

new text begin (5) expanding a public process; or
new text end

new text begin (6) adjusting how a watershed district carries out program activities within the district's
discretion.
new text end

Sec. 43.

Minnesota Statutes 2022, section 103D.405, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

(a) The managers deleted text begin and the boarddeleted text end must revise the watershed
management plan for the watershed district at least once every ten years after the original
watershed management plan is approved. The revised watershed management plan of the
district must conform closely with adopted watershed management plan guidelines of the
board deleted text begin of Water and Soil Resourcesdeleted text end .

(b) The managers must include the following items in the revised watershed management
plan:

(1) updates and supplements of the existing hydrological and other statistical data of the
watershed district;

(2) specific projects and programs to be considered for implementation;

(3) a statement of the extent that the purposes for which the watershed district had been
established have been accomplished;

(4) a description of problems requiring future action by the watershed district;

(5) a summary of completed studies on active or planned projects, including financial
data; and

(6) an analysis of the effectiveness of the watershed district's rules and permits in
achieving its water management objectives in the watershed district.

(c) A revised watershed management plan must be transmitted, reviewed, recommended,
and approved as provided in subdivisions 2 to 4 and 6.

Sec. 44.

Minnesota Statutes 2022, section 103D.535, subdivision 3, is amended to read:


Subd. 3.

Appeals from managers' orders.

(a) If an appeal is taken from an order
authorizing a project, a trial of an appeal of benefits or damages from the proceedings must
be stayed until the appeal is decided. If the order authorizing the project is affirmed, a trial
of an appeal of benefits or damages may commence.

(b) If the appeal is from an order refusing to authorize a project and the court or the
board later orders the project, the secretary new text begin or administrator new text end of the watershed district shall
give notice by publication of the filing of the order. The notice is sufficient if it refers to
the proposed project by general description and recites the substance of the order and the
date of filing in the court.

Sec. 45.

Minnesota Statutes 2022, section 103D.701, is amended to read:


103D.701 PROJECT INITIATION.

Projects may not be initiated until the board approves a watershed management plan for
the watershed district. deleted text begin The projectsdeleted text end new text begin A projectnew text end of the watershed district deleted text begin that are to be paid
for by assessment of the benefited properties
deleted text end must be initiated:

(1) by a project petition filed with the managers;

(2) by deleted text begin unanimousdeleted text end resolution ofnew text begin a majority of the members ofnew text end the new text begin board of new text end managers; or

(3) as otherwise prescribed by this chapter.

Sec. 46.

Minnesota Statutes 2022, section 103D.705, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

new text begin (a) new text end A project within the watershed district that generally
conforms with the watershed management plan may be initiated by a project petition. A
project petition must contain:

(1) a description of the proposed project and the purpose to be accomplished;

(2) a description of the property where the proposed project passes over or is located;

(3) a general description of the part of the watershed district that will be affected, if less
than the entire watershed district;

(4) the necessity for the proposed project;

(5) a statement that the proposed project will be conducive to public health, convenience,
and welfare; and

(6) a statement that the petitioners will pay all costs and expenses that may be incurred
if the proceedings are dismissed or a construction or implementation contract is not awarded
for the proposed project.

new text begin (b) A petition may request that the managers adopt a resolution according to section
103D.707, subdivision 1, to allow sources of funding other than assessment to be used in
whole or in part for the project. Upon adopting a requested resolution, the managers must
release the deposit or bond required under subdivision 3.
new text end

Sec. 47.

Minnesota Statutes 2022, section 103D.705, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Determination. new text end

new text begin If the managers determine that a proper project petition has
been filed and that the proposed project promotes the public interest and welfare, is
practicable, and conforms with the watershed management plan of the watershed district,
the managers must:
new text end

new text begin (1) identify the project by name and number; and
new text end

new text begin (2) designate an engineer to make surveys, maps, and a report on the proposed project.
new text end

Sec. 48.

new text begin [103D.707] PROJECTS INITIATED BY MANAGERS.
new text end

new text begin Subdivision 1. new text end

new text begin Resolution. new text end

new text begin A majority of the members of the board of managers may
initiate a project by a resolution finding that the project generally conforms with the
watershed management plan of the watershed district. The resolution must:
new text end

new text begin (1) identify the project by name and number;
new text end

new text begin (2) identify intended sources of project funding; and
new text end

new text begin (3) designate an engineer to make surveys, maps, and a report on the proposed project.
new text end

new text begin Subd. 2. new text end

new text begin Funding. new text end

new text begin (a) A project initiated under this section may be funded from one or
more sources of funds available to the watershed district, including but not limited to levy,
assessment, a water management district charge, and external sources. The availability and
use of a source of funding must be as specified in applicable law.
new text end

new text begin (b) The finding under subdivision 1 as to intended sources of funding is not binding on
the managers. However, the procedures of this chapter must be afforded to property owners
affected by any subsequent decision of the managers to expand the use of assessment.
new text end

new text begin Subd. 3. new text end

new text begin Determining benefits. new text end

new text begin Procedures in section 103D.715 for appointing resident
appraisers and determining benefits apply to a project initiated by resolution of the managers
only if and to the extent that a project is to be funded in whole or part by assessment.
new text end

Sec. 49.

Minnesota Statutes 2022, section 103D.711, subdivision 3, is amended to read:


Subd. 3.

State and federal projects.

The engineer may adopt, approve, and include as
a part of the engineer's report a project of the state or federal government that is pertinent
to the project and may accept data, plats, plans, details, or information pertaining to the
state or federal project given to the deleted text begin engineerdeleted text end new text begin watershed districtnew text end by the state or federal agency.
The engineer deleted text begin shalldeleted text end new text begin maynew text end omit the items required in subdivision 2 from the engineer's report
if the data given by the state or federal government is sufficient to meet the requirements
of subdivision 2.

Sec. 50.

Minnesota Statutes 2022, section 103D.711, subdivision 4, is amended to read:


Subd. 4.

Hearing after unfavorable engineer's report.

(a) Ifnew text begin the project has been
initiated by petition and
new text end the engineer's report is unfavorable, the managers shall, by order,
within 35 days set a time and place within the watershed district for a hearing for the
petitioners to demonstrate why the managers should not refer the petition back to the
petitioners for further proceedings or dismiss the petition.

(b) The hearing notice must state:

(1) that the engineer's report is unfavorable;

(2) that the engineer's report is on file with the managers and may be reviewed; and

(3) the time and place for the hearing.

(c) The managers shall mail a copy of the notice to each of the petitioners at least 14
days before the hearing.

Sec. 51.

Minnesota Statutes 2022, section 103D.711, subdivision 6, is amended to read:


Subd. 6.

Notice for final hearing; timing.

A notice may not be issued for the final
hearing until the board's advisory report and the director's advisory report are filed or the
time for filing the reports with the managers has expired.new text begin For projects initiated by the
managers according to section 103D.707, the managers may decide at any time not to
proceed to final hearing.
new text end

Sec. 52.

Minnesota Statutes 2022, section 103D.715, subdivision 1, is amended to read:


Subdivision 1.

Appointment.

After the engineer's report is filed, new text begin if the project is proposed
to be funded in whole or in part by assessments of benefitted land owners,
new text end the managers
shall, with the least possible delay, appoint three disinterested resident owners of the state
as appraisers.

Sec. 53.

Minnesota Statutes 2022, section 103D.729, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A watershed district may establish a water management
district or districts in the territory within the watershed, for the purpose of collecting revenues
and paying the costs of projects initiated under section 103B.231, deleted text begin 103D.601, 103D.605,
103D.611,
deleted text end new text begin 103D.701,new text end or 103D.730.

Sec. 54.

Minnesota Statutes 2022, section 103D.729, subdivision 2, is amended to read:


Subd. 2.

Procedure.

A watershed district may establish a water management district
only by amendment to its plan in accordance with section deleted text begin 103D.411, ordeleted text end new text begin 103D.401, ornew text end
103B.231 for watershed districts in the metropolitan area, and compliance with subdivisions
3 and 4. The amendment deleted text begin shalldeleted text end new text begin mustnew text end describe with particularity the territory or the area to
be included in the water management district, the amount of the necessary charges, the
methods used to determine charges, and the length of time the water management district
will remain in force. After adoptionnew text begin ,new text end the amendment deleted text begin shalldeleted text end new text begin mustnew text end be filed with the county
auditor and county recorder of each county affected by the water management district.
new text begin Charges must be collected according to section 444.075, subdivision 2a. new text end The water
management district may be dissolved by the procedure prescribed for the establishment of
the water management district.

Sec. 55.

Minnesota Statutes 2022, section 103D.731, is amended to read:


103D.731 APPRAISERS' REPORT; EXAMINATION.

(a) The appraisers shall prepare an appraisers' report of the benefits and damages
determined and file the report with the managers.

(b) After the appraisers' report is filed, the managers shall examine the report and
determine whether:

(1) the report was made in conformity with the requirements of this chapter; and

(2) new text begin for each property to be assessed, new text end the deleted text begin totaldeleted text end benefits are greater than the deleted text begin total estimateddeleted text end
costs deleted text begin and damagesdeleted text end new text begin to be assessednew text end .

(c) If the managers determine the appraisers' report is inadequate in any manner, the
managers may return the report to the appraisers for further study and report.

Sec. 56.

Minnesota Statutes 2022, section 103D.745, subdivision 3, is amended to read:


Subd. 3.

Establishing project.

(a) The managers shall make findings, order and direct
construction or implementation of the project, and confirm the engineer's report and the
findings of the appraisers and the appraisers' report if, at the end of the final hearing, the
managers find that the project will:

(1) be conducive to public health;

(2) promote the general welfare;

(3) be in compliance with this chapter; and

(4) new text begin for each property to be assessed, new text end result in benefits that will be greater than the cost
deleted text begin of the construction or implementation and damagesdeleted text end new text begin to be assessednew text end .

(b) The order may authorize the construction or implementation of the project as a whole
or authorize different parts of the project to be constructed separately.

(c) The managers shall order the engineer to proceed with making the necessary surveys
and preparing plans and specifications that are needed to construct the project and report
the results of the surveys and plans to the managers.

Sec. 57.

Minnesota Statutes 2022, section 103D.805, is amended to read:


103D.805 FILING MANAGERS' ORDER ESTABLISHING PROJECT.

An order of the managers establishing the project and authorizing construction must
immediately be filed with the secretary new text begin or administrator new text end of the watershed district, and a
certified copy of the order must be filed with the auditor of each county affected, the board,
the commissioner, the director, the Pollution Control Agency, and the commissioner of
health.

Sec. 58.

Minnesota Statutes 2022, section 103D.811, subdivision 3, is amended to read:


Subd. 3.

Awarding contract.

(a) At a time and place specified in the bid notice, the
managers may accept or reject any or all bids and may award the contract to the lowest
responsible bidder. The bidder to whom the contract is to be awarded must give a bond,
deleted text begin with ample securitydeleted text end new text begin as required by section 574.26new text end , conditioned by satisfactory completion
of the contract.

(b) Bids must not be considered which in the aggregate exceed by more than 30 percent
the total estimated cost of construction or implementation.

(c) As an alternative to the procurement method described in paragraph (a), the managers
may issue a request for proposals and award the contract to the vendor or contractor offering
the best value as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and
paragraph (c).

(d) The contract must be in writing and be accompanied by or refer to the plans and
specifications for the work to be done as prepared by the engineer for the watershed district.
The plans and specifications shall become a part of the contract.

(e) The contract deleted text begin shalldeleted text end new text begin mustnew text end be approved by the managers deleted text begin and signed by the president,
secretary, and contractor
deleted text end .

Sec. 59.

Minnesota Statutes 2022, section 103D.901, subdivision 2, is amended to read:


Subd. 2.

County funding.

After the assessment statement is filed with the auditor, the
county board of each affected county shall provide funds to meet its proportionate share of
the total cost of the project, as shown by the engineer's report and order of the managers.
The county may issue bonds of the county in the manner provided by section 103E.635. deleted text begin If
an improvement is to be constructed under section 103D.611, the provisions of section
103E.635 requiring the county board to award a contract for construction or implementation
before issuing bonds is not applicable to bonds issued to provide the funds required to be
furnished by this section.
deleted text end

Sec. 60.

Minnesota Statutes 2022, section 103E.729, subdivision 9, is amended to read:


Subd. 9.

Sunset.

This section expires on July 31, deleted text begin 2024deleted text end new text begin 2029new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 61.

Minnesota Statutes 2022, section 103F.48, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Board" means the Board of Water and Soil Resources.

(c) "Buffer" means an area consisting of perennial vegetation, excluding invasive plants
and noxious weeds, adjacent to all bodies of water within the state and that protects the
water resources of the state from runoff pollution; stabilizes soils, shores, and banks; and
protects or provides riparian corridors.

(d) "Buffer-protection map" means buffer maps established and maintained by the
commissioner of natural resources.

(e) "Commissioner" means the commissioner of natural resources.

(f) "Executive director" means the executive director of the Board of Water and Soil
Resources.

(g) "Local water management authority" means a watershed district, metropolitan water
management organization, or county operating separately or jointly in its role as local water
management authority under chapter 103B or 103D.

(h) "Normal water level" means the level evidenced by the long-term presence of surface
water as indicated directly by hydrophytic plants or hydric soils or indirectly determined
via hydrological models or analysis.

(i) "Public waters" means public waters that are on the public waters inventory as provided
in section 103G.201.

(j) "With jurisdiction" means a board determination that the county or watershed district
has adoptednew text begin and is implementingnew text end a rule, ordinance, or official controls providing procedures
for the issuance of administrative penalty orders, enforcement, and appeals for purposes of
this section and section 103B.101deleted text begin , subdivision 12adeleted text end .new text begin This determination is revocable by
board action if the adoption and implementation of rule, ordinance, or official controls are
not in compliance with the requirements of this section or board-adopted procedures.
new text end

Sec. 62.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Agricultural crop production. new text end

new text begin "Agricultural crop production" means an
agricultural activity that is devoted to producing horticultural, row, close-grown, introduced
pasture, or introduced hayland crops and includes but is not limited to tillage, planting, or
harvesting operations.
new text end

Sec. 63.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Agricultural land. new text end

new text begin "Agricultural land" means land devoted to the following
uses and includes any contiguous land associated with the uses:
new text end

new text begin (1) pasture or hayland for domestic livestock or dairy animals;
new text end

new text begin (2) producing agricultural crops;
new text end

new text begin (3) growing nursery stocks; or
new text end

new text begin (4) animal feedlots.
new text end

Sec. 64.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 1c. new text end

new text begin Approved practice. new text end

new text begin "Approved practice" means a conservation practice that
may be established on an easement area and that meets the requirements of section 103F.527.
new text end

Sec. 65.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Conservation easement program. new text end

new text begin "Conservation easement program" means:
new text end

new text begin (1) the reinvest in Minnesota reserve program under section 103F.515;
new text end

new text begin (2) the permanent wetlands preserve program under section 103F.516;
new text end

new text begin (3) the reinvest in Minnesota clean energy program under section 103F.518; or
new text end

new text begin (4) the reinvest in Minnesota working lands program under section 103F.519.
new text end

Sec. 66.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 3b. new text end

new text begin Conservation plan. new text end

new text begin "Conservation plan" means a written description and map
of approved practices that must be applied to or that already exist on an easement area.
new text end

Sec. 67.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 5b. new text end

new text begin Food plot. new text end

new text begin "Food plot" means an area established to provide food for wildlife.
new text end

Sec. 68.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 5d. new text end

new text begin Land with crop history. new text end

new text begin "Land with crop history" means land that has
produced horticultural, row, or close-grown crops or that has been enrolled at a cropland
rate in a federal or state conservation program for at least two of the five years preceding
an application to enroll the land in a conservation easement program. Land with crop history
includes acres devoted to set-aside or conserving use for programs of the United States
Department of Agriculture.
new text end

Sec. 69.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Pasture. new text end

new text begin "Pasture" means land that is used for grazing by domestic livestock
and that is not considered land with crop history.
new text end

Sec. 70.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 7b. new text end

new text begin Perennial cover. new text end

new text begin "Perennial cover" means:
new text end

new text begin (1) existing or established perennial vegetation within the easement boundary; or
new text end

new text begin (2) a restored or existing wetland or water-covered area within the easement boundary.
new text end

Sec. 71.

Minnesota Statutes 2022, section 103F.515, is amended to read:


103F.515 REINVEST IN MINNESOTA RESERVE PROGRAM.

Subdivision 1.

Establishment.

The board, in consultation with the commissioner of
agriculture and the commissioner of natural resources, shall establish and administer the
reinvest in Minnesota reserve program. The board shall implement sections 103F.505 to
103F.531. Selection of land for the reinvest in Minnesota reserve program must be based
on its deleted text begin enhancement potential for fish, wildlife, and native plant habitats, reducing erosion,
and protecting water quality
deleted text end new text begin benefit to accomplishing the purposes in section 103F.505new text end .

Subd. 2.

Eligible land.

(a) Land may be placed in the reinvest in Minnesota reserve
program if the land meets the requirements of paragraphs (b) and (c) or paragraph (d).

(b) Land is eligible if the land:

(1) is marginal agricultural land;

(2) is adjacent to marginal agricultural land and is either beneficial to resource protection
or necessary for efficient recording of the land description;

(3) consists of a drained wetland;

(4) is land that with a windbreak or water quality improvement practice would be
beneficial to resource protection;

(5) is land in a sensitive groundwater area;

(6) is ripariannew text begin or floodplainnew text end land;

(7) is cropland or noncropland adjacent to restored wetlands to the extent of up to eight
acres of cropland or deleted text begin one acre ofdeleted text end noncropland for each acre of wetland restored;

(8) is a woodlot on agricultural land;

(9) is abandoned building site on agricultural land, provided that funds are not used for
compensation of the value of the buildings; deleted text begin or
deleted text end

(10) is land used for pasturedeleted text begin .deleted text end new text begin ; or
new text end

new text begin (11) is land in an environmentally sensitive area, including grasslands, peatlands,
shorelands, karst geology, trout stream watersheds, and forest lands in priority areas.
new text end

(c) Eligible land under paragraph (a) must:

(1) be owned by the landowner, or a parent or other blood relative of the landowner, for
at least one year before the date of application;

deleted text begin (2) be at least five acres in size, except for a drained wetland area, riparian area,
windbreak, woodlot, wellhead protection area, or abandoned building site, or be a whole
field;
deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end not be set aside, enrolled or diverted under another federal or state government
program unless enrollment in the reinvest in Minnesota reserve program would provide
additional conservation benefits or a longer term of enrollment than under the current federal
or state program; and

deleted text begin (4) have been in agricultural crop production for at least two of the last five years before
the date of application except drained wetlands, riparian lands, woodlots, abandoned building
sites, environmentally sensitive areas, wellhead protection areas, or land used for pasture.
deleted text end

new text begin (3) benefit the purposes in section 103F.505.
new text end

(d) Land is eligible if the land isnew text begin withinnew text end a wellhead protection area as defined under
section 103I.005, subdivision 24, and has a wellhead protection plan approved by the
commissioner of health.

(e) In selecting land for enrollment in the program, highest priority must be given to
permanent easements that are consistent with the purposes stated in section 103F.505.

Subd. 3.

Conservation easements.

(a) The board may acquire, or accept by gift or
donation, conservation easements on eligible land. An easement may be permanent or of
limited duration. An easement acquired on land for new text begin wetland restoration or new text end windbreak
purposes, under subdivision 2, may be only of permanent duration. An easement of limited
duration may not be acquired if it is for a period less than 20 years. The negotiation and
acquisition of easements authorized by this section are exempt from the contractual provisions
of chapters 16B and 16C.

(b) The board may acquire, or accept by gift or donation, flowage easements when
necessary for completion of wetland restoration projects.

Subd. 4.

Nature of property rights acquired.

(a) A conservation easement must prohibit:

(1) alteration of wildlife habitat and other natural features, unless specifically approved
by the board;

(2) agricultural crop production and livestock grazing, unless specifically approved by
the board for conservation management purposes or extreme drought; deleted text begin and
deleted text end

(3) spraying with chemicals or mowing, except:

(i) as necessary to comply with noxious weed control laws;

(ii) for emergency control of pests necessary to protect public health; or

(iii) as approved by the board for conservation management purposesdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) extracting or mining any gravel, rock, or topsoil.
new text end

(b) A conservation easement is subject to the terms of the agreement provided in
subdivision 5.

(c) A conservation easement must allow repairs, improvements, and inspections necessary
to maintain public drainage systems provided the easement area is restored to the condition
required by the terms of the conservation easement.

(d) Notwithstanding paragraph (a), the board must permit the harvest of native grasses
for use in seed production or bioenergy on wellhead protection lands eligible under
subdivision 2, paragraph (d).

new text begin (e) A conservation easement must allow the board and its employees and agents to enter
the easement area for inspection and for enforcing the terms and conditions of the
conservation easement.
new text end

Subd. 5.

Agreements by landowner.

The board may enroll eligible land in the reinvest
in Minnesota reserve program by signing an agreement deleted text begin in recordable formdeleted text end with a landowner
in which the landowner agrees:

(1) to convey to the state a conservation easement that is not subject to any prior deleted text begin title,
lien, or encumbrance
deleted text end new text begin liens or encumbrances that are determined to be objectionable by the
attorney general
new text end ;

(2) to seed the land subject to the conservation easement, as specified in the agreement,
to establish and maintain perennial cover of either a grass-legume mixture or native grasses
for the term of the easement, at seeding rates determined by the board; or to plant trees or
carry out other long-term capital improvements approved by the board for soil and water
conservation or wildlife management;

(3) to convey to the state a permanent easement for the wetland restoration;

deleted text begin (4) that other land supporting natural vegetation owned or leased as part of the same
farm operation at the time of application, if it supports natural vegetation and has not been
used in agricultural crop production, will not be converted to agricultural crop production
or pasture; and
deleted text end

deleted text begin (5)deleted text end new text begin (4)new text end that the easement duration may be lengthened through mutual agreement with
the board in consultation with the commissioners of agriculture and natural resources if
they determine that the changes effectuate the purpose of the program or facilitate its
administrationdeleted text begin .deleted text end new text begin ;
new text end

new text begin (5) to be responsible for operating and maintaining approved practices designated in the
conservation plan;
new text end

new text begin (6) to pay, when due, all taxes and assessments that may be levied against the easement
area;
new text end

new text begin (7) to remove any existing structures as required before the conservation easement is
conveyed and not place, erect, or construct structures on the easement area;
new text end

new text begin (8) to remove any existing hazardous and toxic substances or any pollutants and
contaminants before the conservation easement is conveyed and not place such substances,
pollutants, or contaminants on the easement area; and
new text end

new text begin (9) to properly seal all abandoned wells on the easement area before the conservation
easement is conveyed and pay all associated costs.
new text end

Subd. 6.

Payments for easements.

(a) The board shall establish rates for payments to
the landowner for the conservation easement and related practices. The board shall consider
market factors, including the township average equalized estimated market value of property
as established by the commissioner of revenue at the time of easement application.

(b) The board may establish a payment system for flowage easements acquired under
this section.

(c) For wetland restoration projects involving more than one conservation easement,
state payments for restoration costs may exceed the limits set by the board for an individual
easement provided the total payment for the restoration project does not exceed the amount
payable for the total number of acres involved.

deleted text begin (d) The board may use available nonstate funds to exceed the payment limits in this
section.
deleted text end

Subd. 7.

Easement renewal.

When a conservation easement of limited duration expires,
a new conservation easement and agreement for an additional period of not less than 20
years may be acquired by agreement of the board and the landowner, under the terms of
this section. The board may adjust payment rates as a result of renewing an agreement and
conservation easement only after examining the condition of the established cover,
conservation practices, and land values.

Subd. 8.

Correcting boundary lines.

To correct errors in legal descriptions for easements
that affect the ownership interests in the state and adjacent landowners, the board may, in
the name of the state, with the approval of the attorney general, convey, without
consideration, interests of the state necessary to correct legal descriptions of boundaries.
The conveyance must be by quitclaim deed or release in a form approved by the attorney
general.

Subd. 9.

Enforcement and damages.

(a) A landowner who violates the term of a
conservation easement or agreement under this section, or induces, assists, or allows another
to do so, is liable to the state for treble damages if the trespass is willful, but liable for double
damages only if the trespass is not willful. The amount of damages is the amount needed
to make the state whole or the amount the landowner has gained due to the violation,
whichever is greater.

(b) deleted text begin Upon the request of the board,deleted text end new text begin The board may request that the attorney general
commence a legal action for a violation, and
new text end the attorney general may commence an action
for specific performances, injunctive relief, damages, including attorney's fees, and any
other appropriate relief to enforce sections 103F.505 to 103F.531 in district court in the
county where all or part of the violation is alleged to have been committed, or where the
landowner resides or has a principal place of business.new text begin In addition to or in lieu of making
a request under this paragraph, the board may use its authority under section 103B.101,
subdivision 12, to issue a penalty order for a violation. The penalties may be forgiven, in
whole or in part, upon compliance with the conservation easement conditions.
new text end

new text begin (c) A landowner is not in violation of the conservation easement if a failure of approved
practices was caused by reasons beyond the landowner's control.
new text end

Subd. 10.

Use for mitigation prohibited.

Money made available under the reinvest in
Minnesota reserve program may not be used for environmental regulatory or wetland
mitigation purposes required under federal or state law.

Sec. 72.

new text begin [103F.527] CONSERVATION PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Approved practices. new text end

new text begin An approved practice must be consistent with
section 103F.505. The landowner is responsible for establishing all approved practices on
the easement area as specified by the board.
new text end

new text begin Subd. 2. new text end

new text begin Approved practices eligible for reimbursement. new text end

new text begin The board must determine
which approved practices are eligible for payments or reimbursement under a conservation
easement program. Food plots are not eligible for payments or reimbursement under a
conservation easement program.
new text end

new text begin Subd. 3. new text end

new text begin Money from other sources. new text end

new text begin The board may augment money available to pay
for or reimburse approved practices with money from other agencies, organizations, or
individuals.
new text end

Sec. 73.

new text begin [103F.528] SOIL AND WATER CONSERVATION DISTRICT
RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Program delegation. new text end

new text begin With the consent of the Board of Water and Soil
Resources, a district may enter into an agreement with others, as authorized under section
103C.231, to delegate, in whole or in part, the responsibility for administering a conservation
easement program.
new text end

new text begin Subd. 2. new text end

new text begin Land in more than one district. new text end

new text begin If an application involves land in more than
one district, the districts or delegated parties may jointly agree for one of the districts or
delegated parties to be the responsible party to review and prioritize the application and
complete all tasks necessary to convey the conservation easement to the Board of Water
and Soil Resources.
new text end

new text begin Subd. 3. new text end

new text begin Violations and enforcement. new text end

new text begin The district may take measures that are necessary
to ensure landowner compliance with the conservation agreement, conservation easement,
and conservation plan. If the district is unsuccessful in obtaining landowner compliance,
the district must notify the Board of Water and Soil Resources of the violation and may
recommend appropriate measures to be taken to correct the violation.
new text end

Sec. 74.

Minnesota Statutes 2022, section 103F.535, subdivision 5, is amended to read:


Subd. 5.

Altering conservation easements.

new text begin (a) new text end Conservation easements may be altered,
released, or terminated by the board after consultation with the commissioners of agriculture
and natural resources. The board may alter, release, or terminate a conservation easement
only if the board determines that the public interest and general welfare are better served
by the alteration, release, or termination.

new text begin (b) The board may adopt policies and procedures to implement this subdivision, including
provisions to ensure at least equal resource value as a condition of approving a request to
alter, release, or terminate a conservation easement.
new text end

new text begin (c) The landowner must compensate the board for damages and loss of benefits to the
conservation easement that result from the alteration, release, or termination. The board
may require the landowner to reimburse the board's administrative expenses and costs
incurred in altering, releasing, or terminating a conservation easement.
new text end

Sec. 75.

Minnesota Statutes 2022, section 103G.005, subdivision 14d, is amended to read:


Subd. 14d.

Project.

"Project" means a specific plan, contiguous activity, proposal, or
design necessary to accomplish a goal as defined by the local government unit. As used in
this chapter, a project may not be split into components or phases for the deleted text begin soledeleted text end purpose of
gaining additional exemptions.

Sec. 76.

Minnesota Statutes 2022, section 103G.005, subdivision 17b, is amended to read:


Subd. 17b.

Wetland type.

"Wetland type" means a wetland type classified according
to Wetlands of the United States, United States Fish and Wildlife Service Circular 39 (1971
edition)deleted text begin , as summarized in this subdivisiondeleted text end new text begin or A Hydrogeomorphic Classification for
Wetlands
, United States Army Corps of Engineers (August 1993), including updates,
supplementary guidance, and replacements, if any, as determined by the board
new text end .

deleted text begin (1) "Type 1 wetlands" are seasonally flooded basins or flats in which soil is covered
with water or is waterlogged during variable seasonal periods but usually is well-drained
during much of the growing season. Type 1 wetlands are located in depressions and in
overflow bottomlands along watercourses, and in which vegetation varies greatly according
to season and duration of flooding and includes bottomland hardwoods as well as herbaceous
growths.
deleted text end

deleted text begin (2) "Type 2 wetlands" are inland fresh meadows in which soil is usually without standing
water during most of the growing season but is waterlogged within at least a few inches of
surface. Vegetation includes grasses, sedges, rushes, and various broad-leafed plants.
Meadows may fill shallow basins, sloughs, or farmland sags, or these meadows may border
shallow marshes on the landward side.
deleted text end

deleted text begin (3) "Type 3 wetlands" are inland shallow fresh marshes in which soil is usually
waterlogged early during a growing season and often covered with as much as six inches
or more of water. Vegetation includes grasses, bulrushes, spikerushes, and various other
marsh plants such as cattails, arrowheads, pickerelweed, and smartweeds. These marshes
may nearly fill shallow lake basins or sloughs, or may border deep marshes on the landward
side and are also common as seep areas on irrigated lands.
deleted text end

deleted text begin (4) "Type 4 wetlands" are inland deep fresh marshes in which soil is usually covered
with six inches to three feet or more of water during the growing season. Vegetation includes
cattails, reeds, bulrushes, spikerushes, and wild rice. In open areas, pondweeds, naiads,
coontail, water milfoils, waterweeds, duckweeds, waterlilies, or spatterdocks may occur.
These deep marshes may completely fill shallow lake basins, potholes, limestone sinks, and
sloughs, or they may border open water in such depressions.
deleted text end

deleted text begin (5) "Type 5 wetlands" are inland open fresh water, shallow ponds, and reservoirs in
which water is usually less than ten feet deep and is fringed by a border of emergent
vegetation similar to open areas of type 4 wetland.
deleted text end

deleted text begin (6) "Type 6 wetlands" are shrub swamps in which soil is usually waterlogged during
growing season and is often covered with as much as six inches of water. Vegetation includes
alders, willows, buttonbush, dogwoods, and swamp-privet. This type occurs mostly along
sluggish streams and occasionally on floodplains.
deleted text end

deleted text begin (7) "Type 7 wetlands" are wooded swamps in which soil is waterlogged at least to within
a few inches of the surface during growing season and is often covered with as much as one
foot of water. This type occurs mostly along sluggish streams, on floodplains, on flat uplands,
and in shallow basins. Trees include tamarack, arborvitae, black spruce, balsam, red maple,
and black ash. Northern evergreen swamps usually have a thick ground cover of mosses.
Deciduous swamps frequently support beds of duckweeds and smartweeds.
deleted text end

deleted text begin (8) "Type 8 wetlands" are bogs in which soil is usually waterlogged and supports a
spongy covering of mosses. This type occurs mostly in shallow basins, on flat uplands, and
along sluggish streams. Vegetation is woody or herbaceous or both. Typical plants are heath
shrubs, sphagnum moss, and sedges. In the north, leatherleaf, Labrador-tea, cranberries,
carex, and cottongrass are often present. Scattered, often stunted, black spruce and tamarack
may occur.
deleted text end

Sec. 77.

Minnesota Statutes 2023 Supplement, section 103G.005, subdivision 19, is
amended to read:


Subd. 19.

Wetlands.

(a) "Wetlands" means lands transitional between terrestrial and
aquatic systems where the water table is usually at or near the surface or the land is covered
by shallow water. For purposes of this definition, wetlands must have the following three
attributes:

(1) have a predominance of hydric soils;

(2) are inundated or saturated by surface water or groundwater at a frequency and duration
sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in
saturated soil conditions; and

(3) under normal circumstances support a prevalence of such vegetation.

(b) For the purposes of regulation under this chapter, the term wetlands does not include
public waters wetlands as defined in subdivision 15a.

new text begin (c) Notwithstanding paragraph (a), wetlands includes deepwater aquatic habitats that
are not public waters or public waters wetlands. For purposes of this paragraph, "deepwater
aquatic habitats" has the meaning given in Corps of Engineers Wetlands Delineation Manual,
United States Army Corps of Engineers (January 1987).
new text end

Sec. 78.

Minnesota Statutes 2022, section 103G.222, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

(a) Wetlands must not be drained or filled, wholly or
partially, unless replaced by actions that provide at least equal public value under a
replacement plan approved as provided in section 103G.2242, a replacement plan under a
local governmental unit's comprehensive wetland protection and management plan approved
by the board under section 103G.2243, or, if a permit to mine is required under section
93.481, under a mining reclamation plan approved by the commissioner under the permit
to mine. Project-specific wetland-replacement plans submitted as part of a project for which
a permit to mine is required and approved by the commissioner on or after July 1, 1991,
may include surplus wetland credits to be allocated by the commissioner to offset future
mining-related wetland impacts under any permits to mine held by the permittee, the operator,
the permittee's or operator's parent, an affiliated subsidiary, or an assignee pursuant to an
assignment under section 93.481, subdivision 5. For project-specific wetland replacement
completed prior to wetland impacts authorized or conducted under a permit to mine within
the Great Lakes and Rainy River watershed basins, those basins deleted text begin shall bedeleted text end new text begin arenew text end considered a
single watershed for purposes of determining wetland-replacement ratios. Mining reclamation
plans deleted text begin shalldeleted text end new text begin mustnew text end apply the same principles and standards for replacing wetlands that are
applicable to mitigation plans approved as provided in section 103G.2242. The commissioner
must provide notice of an application for wetland replacement under a permit to mine to
the county in which the impact is proposed and the county in which a mitigation site is
proposed. Public value must be determined in accordance with section 103B.3355 or a
comprehensive wetland protection and management plan established under section
103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in permanently and
semipermanently flooded areas of deleted text begin types 3, 4, and 5deleted text end wetlands.

(b) Replacement must be guided by the following principles in descending order of
priority:

(1) avoiding the direct or indirect impact of the activity that may destroy or diminish
the wetland;

(2) minimizing the impact by limiting the degree or magnitude of the wetland activity
and its implementation;

(3) rectifying the impact by repairing, rehabilitating, or restoring the affected wetland
environment;

(4) reducing or eliminating the impact over time by preservation and maintenance
operations during the life of the activity;

(5) compensating for the impact by restoring a wetland; and

(6) compensating for the impact by replacing or providing substitute wetland resources
or environments.

For a project involving the draining or filling of wetlands in an amount not exceeding 10,000
square feet more than the applicable amount in section 103G.2241, subdivision 9, paragraph
(a), the local government unit may make an on-site sequencing determination without a
written alternatives analysis from the applicant.

(c) If a wetland is located in a cultivated field, then replacement must be accomplished
through restoration only without regard to the priority order in paragraph (b), provided that
the altered wetland is not converted to a nonagricultural use for at least ten years.

(d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241,
deleted text begin subdivision 2, paragraph (b) or (e),deleted text end new text begin subdivision 1, clause (1),new text end the local government unit may
require a deed restriction that prohibits nonagricultural use for at least ten years. The local
government unit may require the deed restriction if it determines the wetland area drained
is at risk of conversion to a nonagricultural use within ten years based on the zoning
classification, proximity to a municipality or full service road, or other criteria as determined
by the local government unit.

(e) Restoration and replacement of wetlands must be accomplished in accordance with
the ecology of the landscape area affected and ponds that are created primarily to fulfill
stormwater management, and water quality treatment requirements may not be used to
satisfy replacement requirements under this chapter unless the design includes pretreatment
of runoff and the pond is functioning as a wetland.

(f) Except as provided in paragraph (g), for a wetland or public waters wetland located
on nonagricultural land, replacement must be in the ratio of two acres of replaced wetland
for each acre of drained or filled wetland.

(g) For a wetland or public waters wetland located on agricultural land or in a greater
than 80 percent area, replacement must be in the ratio of one acre of replaced wetland for
each acre of drained or filled wetland.

(h) Wetlands that are restored or created as a result of an approved replacement plan are
subject to the provisions of this section for any subsequent drainage or filling.

(i) Except in a greater than 80 percent area, only wetlands that have been restored from
previously drained or filled wetlands, wetlands created by excavation in nonwetlands,
wetlands created by dikes or dams along public or private drainage ditches, or wetlands
created by dikes or dams associated with the restoration of previously drained or filled
wetlands may be used for wetland replacement according to rules adopted under section
103G.2242, subdivision 1. Modification or conversion of nondegraded naturally occurring
wetlands from one type to another are not eligible for wetland replacement.

(j) The Technical Evaluation Panel established under section 103G.2242, subdivision
2
, shall ensure that sufficient time has occurred for the wetland to develop wetland
characteristics of soils, vegetation, and hydrology before recommending that the wetland
be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason
to believe that the wetland characteristics may change substantially, the panel shall postpone
its recommendation until the wetland has stabilized.

(k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365 apply
to the state and its departments and agencies.

(l) For projects involving draining or filling of wetlands associated with a new public
transportation project, and for projects expanded solely for additional traffic capacity, public
transportation authorities may purchase credits from the board at the cost to the board to
establish credits. Proceeds from the sale of credits provided under this paragraph are
appropriated to the board for the purposes of this paragraph. For the purposes of this
paragraph, "transportation project" does not include an airport project.

(m) A replacement plan for wetlands is not required for individual projects that result
in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, or
replacement of a currently serviceable existing state, city, county, or town public road
necessary, as determined by the public transportation authority, to meet state or federal
design or safety standards or requirements, excluding new roads or roads expanded solely
for additional traffic capacity lanes. This paragraph only applies to authorities for public
transportation projects that:

(1) minimize the amount of wetland filling or draining associated with the project and
consider mitigating important site-specific wetland functions on site;

(2) except as provided in clause (3), submit project-specific reports to the board, the
Technical Evaluation Panel, the commissioner of natural resources, and members of the
public requesting a copy at least 30 days prior to construction that indicate the location,
amount, and type of wetlands to be filled or drained by the project or, alternatively, convene
an annual meeting of the parties required to receive notice to review projects to be
commenced during the upcoming year; and

(3) for minor and emergency maintenance work impacting less than 10,000 square feet,
submit project-specific reports, within 30 days of commencing the activity, to the board
that indicate the location, amount, and type of wetlands that have been filled or drained.

Those required to receive notice of public transportation projects may appeal
minimization, delineation, and on-site mitigation decisions made by the public transportation
authority to the board according to the provisions of section 103G.2242, subdivision 9. The
Technical Evaluation Panel deleted text begin shalldeleted text end new text begin mustnew text end review minimization and delineation decisions made
by the public transportation authority and provide recommendations regarding on-site
mitigation if requested to do so by the local government unit, a contiguous landowner, or
a member of the Technical Evaluation Panel.

Except for deleted text begin statedeleted text end public transportation projectsnew text begin that occur on state roadsnew text end , for which the
state Department of Transportation is responsible new text begin for the wetland replacementnew text end , the board
must replace the wetlands, and wetland areas of public waters if authorized by the
commissioner or a delegated authority, drained or filled by public transportation projects
on existing roads.

Public transportation authorities at their discretion may deviate from federal and state
design standards on existing road projects when practical and reasonable to avoid wetland
filling or draining, provided that public safety is not unreasonably compromised. The local
road authority and its officers and employees are exempt from liability for any tort claim
for injury to persons or property arising from travel on the highway and related to the
deviation from the design standards for construction or reconstruction under this paragraph.
This paragraph does not preclude an action for damages arising from negligence in
construction or maintenance on a highway.

(n) If a landowner seeks approval of a replacement plan after the proposed project has
already affected the wetland, the local government unit may require the landowner to replace
the affected wetland at a ratio not to exceed twice the replacement ratio otherwise required.

(o) A local government unit may request the board to reclassify a county or watershed
on the basis of its percentage of presettlement wetlands remaining. After receipt of
satisfactory documentation from the local government, the board shall change the
classification of a county or watershed. If requested by the local government unit, the board
must assist in developing the documentation. Within 30 days of its action to approve a
change of wetland classifications, the board shall publish a notice of the change in the
Environmental Quality Board Monitor.

(p) One hundred citizens who reside within the jurisdiction of the local government unit
may request the local government unit to reclassify a county or watershed on the basis of
its percentage of presettlement wetlands remaining. In support of their petition, the citizens
shall provide satisfactory documentation to the local government unit. The local government
unit shall consider the petition and forward the request to the board under paragraph (o) or
provide a reason why the petition is denied.

Sec. 79.

Minnesota Statutes 2022, section 103G.2241, subdivision 1, is amended to read:


Subdivision 1.

Agricultural activities.

A replacement plan for wetlands is not required
for:

deleted text begin (1) activities in a wetland that was planted with annually seeded crops, was in a crop
rotation seeding of pasture grass or legumes, or was required to be set aside to receive price
support or other payments under United States Code, title 7, sections 1421 to 1469, in six
of the last ten years prior to January 1, 1991;
deleted text end

deleted text begin (2) activities in a type 1 wetland on agricultural pasture land that remains in the same
use, except for bottomland hardwood type 1 wetlands, and activities in a type 2 or type 6
wetland that is less than two acres in size and located on agricultural pasture land that
remains in the same use;
deleted text end

new text begin (1) impacts to wetlands on agricultural land labeled prior-converted cropland and impacts
to wetlands resulting from drainage maintenance activities authorized by the United States
Department of Agriculture, Natural Resources Conservation Service, on areas labeled farmed
wetland, farmed-wetland pasture, and wetland. The prior-converted cropland, farmed
wetland, farmed-wetland pasture, or wetland must be labeled on a valid final certified
wetland determination issued by the Natural Resources Conservation Service in accordance
with Code of Federal Regulations, title 7, part 12, as amended. It is the responsibility of the
owner or operator of the land to provide a copy of the final certified wetland determination
to, and allow the Natural Resources Conservation Service to share related information with,
the local government unit and the board for purposes of verification;
new text end

deleted text begin (3)deleted text end new text begin (2)new text end activities in a wetland conducted as part of normal farming practices. For purposes
of this clause, "normal farming practices" means farming, silvicultural, grazing, and ranching
activities such as plowing, seeding, cultivating, and harvesting for the production of feed,
food, and fiber products, but does not include activities that result in the draining of wetlands;

deleted text begin (4)deleted text end new text begin (3)new text end soil and water conservation practices approved by the soil and water conservation
district, after review by the Technical Evaluation Panel;

deleted text begin (5)deleted text end new text begin (4) wetland impacts resulting fromnew text end aquaculture activitiesnew text begin ,new text end including pond excavation
and construction and maintenance of associated access roads and dikesnew text begin ,new text end authorized underdeleted text begin ,deleted text end
and conducted in accordance withdeleted text begin ,deleted text end a permit issued by the United States Army Corps of
Engineers under section 404 of the federal Clean Water Act, United States Code, title 33,
section 1344, but not including construction or expansion of buildings;

deleted text begin (6)deleted text end new text begin (5) wetland impacts resulting fromnew text end wild rice production activities, including necessary
diking and other activitiesnew text begin ,new text end authorized under new text begin and conducted in accordance with new text end a permit
issued by the United States Army Corps of Engineers under section 404 of the federal Clean
Water Act, United States Code, title 33, section 1344; or

deleted text begin (7)deleted text end new text begin (6)new text end agricultural activities on agricultural land that is subject to the swampbuster
provisions of the federal farm program restrictions consistent with a memorandum of
understanding and related agreements between the board and the United States Department
of Agriculture, Natural Resources Conservation Service.

Sec. 80.

Minnesota Statutes 2022, section 103G.2241, subdivision 2, is amended to read:


Subd. 2.

Drainage.

deleted text begin (a) For the purposes of this subdivision, "public drainage system"
means a drainage system as defined in section 103E.005, subdivision 12, and any ditch or
tile lawfully connected to the drainage system.
deleted text end

deleted text begin (b) A replacement plan is not required for draining of type 1 wetlands, or up to five acres
of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed drainage
benefits for a public drainage system, provided that:
deleted text end

deleted text begin (1) during the 20-year period that ended January 1, 1992:
deleted text end

deleted text begin (i) there was an expenditure made from the drainage system account for the public
drainage system;
deleted text end

deleted text begin (ii) the public drainage system was repaired or maintained as approved by the drainage
authority; or
deleted text end

deleted text begin (iii) no repair or maintenance of the public drainage system was required under section
103E.705, subdivision 1, as determined by the public drainage authority; and
deleted text end

deleted text begin (2) the wetlands are not drained for conversion to:
deleted text end

deleted text begin (i) platted lots;
deleted text end

deleted text begin (ii) planned unit, commercial, or industrial developments; or
deleted text end

deleted text begin (iii) any development with more than one residential unit per 40 acres, except for parcels
subject to local zoning standards that allow for family members to establish an additional
residence on the same 40 acres.
deleted text end

deleted text begin If wetlands drained under this paragraph are converted to uses prohibited under clause (2)
during the ten-year period following drainage, the wetlands must be replaced under section
103G.222.
deleted text end

deleted text begin (c) A replacement plan is not required for draining or filling of wetlands, except for
draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years,
resulting from maintenance and repair of existing public drainage systems.
deleted text end

deleted text begin (d)deleted text end new text begin (a)new text end A replacement plan is not required for draining or filling of wetlands, except for
draining wetlands that have been in existence for more than 25 years, resulting from
maintenance and repair of existing drainage systems deleted text begin other thandeleted text end new text begin , includingnew text end public drainage
systems.

deleted text begin (e) A replacement plan is not required for draining agricultural land that:
deleted text end

deleted text begin (1) was planted with annually seeded crops before July 5, except for crops that are
normally planted after that date, in eight out of the ten most recent years prior to the impact;
deleted text end

deleted text begin (2) was in a crop rotation seeding of pasture grass, cover crop, or legumes, or was fallow
for a crop production purpose, in eight out of the ten most recent years prior to the impact;
or
deleted text end

deleted text begin (3) was enrolled in a state or federal land conservation program and met the requirements
of clause (1) or (2) before enrollment.
deleted text end

deleted text begin (f) Thedeleted text end new text begin (b) A new text end public drainage authority may, as part of the repairnew text begin of a public drainage
system, as defined in section 103E.005, subdivision 12
new text end , install control structures, realign
the ditch, construct dikes along the ditch, or make other modifications as necessary to prevent
new text begin the new text end drainage of deleted text begin the wetlanddeleted text end new text begin wetlandsnew text end .

deleted text begin (g) Wetlands of all types that would be drained as a part of a public drainage repair
project are eligible for the permanent wetlands preserve under section 103F.516. The board
shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have been
in existence for more than 25 years on public drainage systems and other wetlands that have
the greatest risk of drainage from a public drainage repair project.
deleted text end

Sec. 81.

Minnesota Statutes 2022, section 103G.2241, subdivision 6, is amended to read:


Subd. 6.

Utilities; public works.

(a) A replacement plan for wetlands is not required
fornew text begin wetland impacts resulting fromnew text end :

(1) new placement or maintenance, repair, enhancement, new text begin realignment, new text end or replacement
of existing utility or utility-type service, including pipelines, deleted text begin if:deleted text end new text begin when wetland impacts are
authorized under and conducted in accordance with a permit issued by the United States
Army Corps of Engineers under section 404 of the federal Clean Water Act, United States
Code, title 33, section 1344, and
new text end

deleted text begin (i)deleted text end the direct and indirect impacts of the proposed project have been avoided and
minimized to the extent possible; deleted text begin and
deleted text end

deleted text begin (ii) the proposed project significantly modifies or alters less than one-half acre of
wetlands;
deleted text end

(2) activities associated with operation, routine maintenance, or emergency repair of
existing utilities and public work structures, including pipelines, provided the activities do
not result in additional wetland intrusion or additional draining or filling of a wetland either
wholly or partially; or

(3) repair and updating of existing subsurface sewage treatment systems necessary to
comply with local, state, and federal regulations.

(b) deleted text begin For maintenance, repair, and replacement, the local government unit may issue a
seasonal or annual exemption certification or the utility may proceed without local
government unit certification if the utility is carrying out the work according to approved
best management practices.
deleted text end Work of an emergency nature may proceed as necessarynew text begin ,new text end and
any drain or fill activities deleted text begin shalldeleted text end new text begin mustnew text end be addressed with the local government unit after the
emergency work has been completed.

Sec. 82.

Minnesota Statutes 2022, section 103G.2241, subdivision 9, is amended to read:


Subd. 9.

De minimis.

(a) Except as provided in paragraphs (d), (e), (f), (g), (h), and (i),
a replacement plan for wetlands is not required for deleted text begin draining or fillingdeleted text end new text begin impacts tonew text end the following
amounts of wetlandsnew text begin , excluding the permanently and semipermanently flooded areas of
wetlands,
new text end as part of a project outside of the shoreland wetland protection zone:

(1) deleted text begin 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and tamarack
wetlands,
deleted text end new text begin one-quarter acre of wetlandnew text end in a greater than 80 percent area;

(2) deleted text begin 5,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and tamarack
wetlands,
deleted text end new text begin one-tenth acre of wetlandnew text end in a 50 to 80 percent areadeleted text begin , except within the 11-county
metropolitan area
deleted text end ;new text begin or
new text end

(3) deleted text begin 2,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and tamarack
wetlands,
deleted text end new text begin one-twentieth acre of wetlandnew text end in a less than 50 percent areadeleted text begin , except within the
11-county metropolitan area; or
deleted text end new text begin .
new text end

deleted text begin (4) 100 square feet of type 3, 4, 5, or 8 wetland or white cedar and tamarack wetland.
deleted text end

(b) Except as provided in paragraphs (e), (f), (g), (h), and (i), a replacement plan for
wetlands is not required for deleted text begin draining or filling the following amounts ofdeleted text end new text begin up to 100 square
feet of impacts to
new text end wetlands as part of a project within the shoreland wetland protection zone
beyond the shoreland building setback zonedeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1) 400 square feet of type 1, 2, 6, or 7 wetland; or
deleted text end

deleted text begin (2) 100 square feet of type 3, 4, 5, or 8 wetland or white cedar and tamarack wetland.
deleted text end

deleted text begin In a greater than 80 percent area, the de minimis amount allowed under clause (1) may be
increased up to 1,000 square feet if the wetland is isolated and is determined to have no
direct surficial connection to the public water or if permanent water runoff retention or
infiltration measures are established in proximity as approved by the shoreland management
authority.
deleted text end

(c) Except as provided in paragraphs (e), (f), (g), (h), and (i), a replacement plan for
wetlands is not required for deleted text begin draining or fillingdeleted text end up to 20 square feet of deleted text begin wetlanddeleted text end new text begin impacts to
wetlands
new text end as part of a project within the shoreland building setback zone, as defined in the
local shoreland management ordinance. The amount in this paragraph may be increased to
100 square feet if permanent water runoff retention or infiltration measures are established
in proximity as approved by the shoreland management authority.

(d) Except as provided in paragraphs deleted text begin (b),deleted text end (c), (e), (f), (g), (h), and (i), a replacement plan
is not required for deleted text begin draining or filling amountsdeleted text end new text begin up to 400 square feetnew text end of new text begin impacts to the
permanently and semipermanently flooded areas of
new text end wetlands as part of a projectdeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1) 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and tamarack
wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent area within
the 11-county metropolitan area; or
deleted text end

deleted text begin (2) 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland
protection zone in a less than 50 percent area within the 11-county metropolitan area.
deleted text end

deleted text begin For purposes of this subdivision, the 11-county metropolitan area consists of the counties
of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington,
and Wright.
deleted text end

(e) The amounts listed in paragraphs (a), (b), deleted text begin anddeleted text end (c)new text begin , and (d)new text end may not be combined on
a project.

deleted text begin (f) This exemption no longer applies to a landowner's portion of a wetland when the
cumulative area drained or filled of the landowner's portion since January 1, 1992, is the
greatest of:
deleted text end

deleted text begin (1) the applicable area listed in paragraph (a), (b), or (c), if the landowner owns the entire
wetland;
deleted text end

deleted text begin (2) five percent of the landowner's portion of the wetland; or
deleted text end

deleted text begin (3) 400 square feet.
deleted text end

new text begin (f) When the total area of impacts to wetlands as part of a project exceeds the applicable
amount in this subdivision, a replacement plan is required for the entire amount.
new text end

(g) This exemption may not be combined with another exemption in this section on a
project.

(h) Property may not be divided to increase the amounts listed in paragraph (a)new text begin , (b), (c),
or (d)
new text end .

(i) If a local ordinance or similar local control is more restrictive than this subdivision,
the local standard applies.

Sec. 83.

Minnesota Statutes 2023 Supplement, section 103G.2242, subdivision 1, is
amended to read:


Subdivision 1.

Rules.

(a) The board, in consultation with the commissioner, shall adopt
rules governing the approval of wetland value replacement plans under this section and
public-waters-work permits affecting public waters wetlands under section 103G.245. These
rules must address the criteria, procedure, timing, and location of acceptable replacement
of wetland values and may address the state establishment and administration of a wetland
banking program for public and private projects, including provisions for an in-lieu fee
program; mitigating and banking other water and water-related resources; the administrative,
monitoring, and enforcement procedures to be used; new text begin provisions that protect or mitigate
impacts to the public values of watercourses that are not public waters;
new text end and a procedure for
the review and appeal of decisions under this section. In the case of peatlands, the
replacement plan rules must consider the impact on carbon. Any in-lieu fee program
established by the board must conform with Code of Federal Regulations, title 33, section
332.8, as amended.

(b) After the adoption of the rules, a replacement plan must be approved by a resolution
of the governing body of the local government unit, consistent with the provisions of the
rules or a comprehensive wetland protection and management plan approved under section
103G.2243.

(c) If the local government unit fails to apply the rules or fails to implement a local
comprehensive wetland protection and management plan established under section
103G.2243, the government unit is subject to penalty as determined by the board.

(d) When making a determination under rules adopted pursuant to this subdivision on
whether a rare natural community will be permanently adversely affected, consideration of
measures to mitigate any adverse effect on the community must be considered.

Sec. 84.

Minnesota Statutes 2022, section 103G.2242, subdivision 2, is amended to read:


Subd. 2.

Evaluation.

(a) Questions concerning the public value, location, size, or type
of a wetland deleted text begin shalldeleted text end new text begin mustnew text end be submitted to and determined by a Technical Evaluation Panel
after an on-site inspection. The Technical Evaluation Panel deleted text begin shalldeleted text end new text begin mustnew text end be composed of a
technical professional employee of the board, a technical professional employee of the local
soil and water conservation district or districts, a technical professional with expertise in
water resources management appointed by the local government unit, and a technical
professional employee of the Department of Natural Resources for projects affecting public
waters or wetlands adjacent to public waters.

new text begin (b) For wetland boundary determinations,new text end the panel deleted text begin shalldeleted text end new text begin mustnew text end use deleted text begin the "United States
Army
deleted text end Corps of Engineers Wetland Delineation Manualdeleted text begin "deleted text end new text begin , United States Army Corps of
Engineers
new text end (January 1987), including updates, supplementary guidance, and replacements,
if anydeleted text begin , "deleted text end new text begin . For wetland type determinations, the panel must also use new text end Wetlands of the United
States
deleted text begin " (deleted text end new text begin , new text end United States Fish and Wildlife Service Circular 39deleted text begin ,deleted text end new text begin (new text end 1971 edition)deleted text begin , and
"deleted text begin Classificationdeleted text end deleted text begin of Wetlands and Deepwater Habitats of the United Statesdeleted text end " (1979 edition)
deleted text end new text begin ;
Classification of Wetlands and Deepwater Habitats of the United States, United States Fish
and Wildlife Service (August 2013 edition); or A Hydrogeomorphic Classification for
Wetlands
, United States Army Corps of Engineers (August 1993), according to rules
authorized under this part and including updates, supplementary guidance, and replacements,
if any, for any of these publications
new text end .

new text begin (c)new text end The panel deleted text begin shalldeleted text end new text begin mustnew text end provide the wetland determination and recommendations on
other technical matters to the local government unit that must approve a replacement plan,
sequencing, exemption determination, no-loss determination, or wetland boundary or type
determination and may recommend approval or denial of the plan. The authority must
consider and include the decision of the Technical Evaluation Panel in their approval or
denial of a plan or determination.

deleted text begin (b)deleted text end new text begin (d)new text end A member of the Technical Evaluation Panel that has a financial interest in a
wetland bank or management responsibility to sell or make recommendations in their official
capacity to sell credits from a publicly owned wetland bank must disclose that interest, in
writing, to the Technical Evaluation Panel and the local government unit.

deleted text begin (c)deleted text end new text begin (e)new text end Persons conducting wetland or public waters boundary delineations or type
determinations are exempt from the requirements of chapter 326. The board may develop
a professional wetland delineator certification program.

deleted text begin (d)deleted text end new text begin (f)new text end The board must establish an interagency team to assist in identifying and evaluating
potential wetland replacement sites. The team must consist of members of the Technical
Evaluation Panel and representatives from the Department of Natural Resources; the Pollution
Control Agency; the United States Army Corps of Engineers, St. Paul district; and other
organizations as determined by the board.

Sec. 85.

Minnesota Statutes 2022, section 103G.2242, subdivision 2a, is amended to read:


Subd. 2a.

Wetland boundary or type determination.

(a) A landowner may apply for
a wetland boundary or type determination from the local government unit. The landowner
applying for the determination is responsible for submitting proof necessary to make the
determination, including, but not limited to, wetland delineation field data, observation well
data, topographic mapping, survey mapping, and information regarding soils, vegetation,
hydrology, and groundwater both within and outside of the proposed wetland boundary.

(b) A local government unit that receives an application under paragraph (a) may seek
the advice of the Technical Evaluation Panel as described in subdivision 2deleted text begin ,deleted text end and, if necessary,
expand the Technical Evaluation Panel. The local government unit may delegate the decision
authority for wetland boundary or type determinations to designated staffdeleted text begin ,deleted text end or establish other
procedures it considers appropriate.

(c) The local government unit decision must be made in compliance with section 15.99.
Within ten calendar days of the decision, the local government unit decision must be mailed
or sent by electronic transmission to the landowner, members of the Technical Evaluation
Panel, the watershed district or watershed management organization, if one exists, and
individual members of the public who request a copy.new text begin Notwithstanding section 15.99,
subdivision 2, the board must establish by rule timelines for project review and comment
for wetland banking projects.
new text end

(d) The local government unit decision is valid for five years unless the Technical
Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation,
or soils of the area have been sufficient to alter the wetland boundary or type.

Sec. 86.

Minnesota Statutes 2022, section 103G.2242, subdivision 3, is amended to read:


Subd. 3.

Replacement completion.

(a) Replacement of wetland values must be completed
prior to or concurrent with the actual draining or filling of a wetland, unless:

(1) an irrevocable bank letter of credit or other financial assurance acceptable to the
local government unit or the board is given to the local government unit or the board to
guarantee the successful completion of the replacement; or

(2) the replacement is approved under an in-lieu fee program according to rules adopted
under subdivision 1. In the case of an in-lieu fee program established by a board-approved
sponsor, the board may require that a financial assurance in an amount and method acceptable
to the board be given to the board to ensure the approved sponsor fulfills the sponsor's
obligation to complete the required wetland replacement.

(b) new text begin The board may establish, sponsor, or administer a wetland banking program, which
may include provisions allowing monetary payment to the wetland banking program for
impacts to wetlands.
new text end The board may acquire land in fee title, purchase or accept easements,
enter into agreements, and purchase existing wetland replacement credits to facilitate the
wetland banking program. The board may establishnew text begin wetland credit andnew text end in-lieu fee payment
amounts and hold money in an account in the special revenue fund, which is appropriated
to the board to be used solely for establishing replacement wetlands and administering the
wetland banking program.

(c) The board shall coordinate the establishment and operation of a wetland bank with
the United States Army Corps of Engineers, the Natural Resources Conservation Service
of the United States Department of Agriculture, and the commissioners of natural resources,
agriculture, and the Pollution Control Agency.

Sec. 87. new text begin REVISOR INSTRUCTION.
new text end

new text begin (a) The revisor of statutes must renumber Minnesota Statutes, section 103F.511,
subdivision 5a, as Minnesota Statutes, section 103F.511, subdivision 5c.
new text end

new text begin (b) The revisor of statutes shall replace references to "section 103A.206" with references
to "section 103C.005" wherever they appear in Minnesota Statutes, chapter 103C.
new text end

Sec. 88. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 103A.206; 103D.315, subdivision 4; 103D.405,
subdivisions 2, 3, 4, 5, and 6; 103D.411; 103D.601; 103D.605, subdivisions 1, 2, 3, and 4;
103D.611; 103D.711, subdivision 1; 103F.511, subdivision 8b; and 103F.950,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 103D.605, subdivision 5, new text end new text begin is repealed.
new text end

new text begin (c) Minnesota Rules, parts 8400.3000; 8400.3030; 8400.3110; 8400.3210; 8400.3260;
8400.3300; 8400.3400; 8400.3460; 8400.3600; 8400.3610; 8400.3630; 8400.3700;
8400.3730; 8400.3800; 8400.3830; and 8400.3930,
new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H3550-2

103A.206 SOIL AND WATER CONSERVATION POLICY.

Maintaining and enhancing the quality of soil and water for the environmental and economic benefits they produce, preventing degradation, and restoring degraded soil and water resources of this state contribute greatly to the health, safety, economic well-being, and general welfare of this state and its citizens. Land occupiers have the responsibility to implement practices that conserve the soil and water resources of the state. Soil and water conservation measures implemented on private lands in this state provide benefits to the general public by reducing erosion, sedimentation, siltation, water pollution, and damages caused by floods. The soil and water conservation policy of the state is to encourage land occupiers to conserve soil, water, and the natural resources they support through the implementation of practices that:

(1) control or prevent erosion, sedimentation, siltation, and related pollution in order to preserve natural resources;

(2) ensure continued soil health, as defined under section 103C.101, subdivision 10a, and soil productivity;

(3) protect water quality;

(4) prevent impairment of dams and reservoirs;

(5) reduce damages caused by floods;

(6) preserve wildlife;

(7) protect the tax base; and

(8) protect public lands and waters.

103D.315 MANAGERS.

Subd. 4.

Seal.

The managers must adopt a seal for the watershed district.

103D.405 REVISED WATERSHED MANAGEMENT PLAN.

Subd. 2.

Required ten-year revision.

(a) After ten years and six months from the date that the board approved a watershed management plan or the last revised watershed management plan, the managers must consider the requirements under subdivision 1 and adopt a revised watershed management plan outline and send a copy of the outline to the board.

(b) By 60 days after receiving a revised watershed management plan outline, the board must review it, adopt recommendations regarding the revised watershed management plan outline, and send the recommendations to the managers.

(c) After receiving the board's recommendations regarding the revised watershed management plan outline, the managers must complete the revised watershed management plan.

Subd. 3.

Review.

The managers must send a copy of the revised watershed management plan to the board, the county board and county auditor of each county affected by the watershed district, the director, the governing body of each municipality affected by the watershed district, soil and water conservation districts affected by the watershed district, and the Metropolitan Council, if the watershed district is within the metropolitan area.

Subd. 4.

Director's and Metropolitan Council's recommendations.

The director and the Metropolitan Council, if applicable, must review and make recommendations on the revised watershed management plan. By 60 days after receiving the revised watershed management plan unless the time is extended by the board, the director and the council must send the recommendations on the revised watershed management plan to the board, and a copy of the recommendations to the managers, the county auditor of each county affected by the watershed district, the governing body of each municipality affected by the watershed district, and soil and water conservation districts affected by the watershed district.

Subd. 5.

Notice.

(a) The board must give notice and hold a revised watershed management plan hearing on the proposed revised watershed management plan by 45 days after receiving the director's and Metropolitan Council's recommendation.

(b) The board must give notice of the revised watershed management plan hearing by publication in a legal newspaper published in counties affected by the watershed district. The last publication must occur at least ten days before the revised watershed management plan hearing.

(c) The board must give notice of the revised watershed management plan hearing by mail to the auditors of counties and to the chief executive officials of municipalities affected by the watershed district.

(d) The notice must include:

(1) a statement that a copy of the proposed revised watershed management plan has been filed with the board, the Metropolitan Council, where applicable, the auditors of counties affected by the proposed watershed district, the commissioner, the director, the governing body of each municipality affected by the watershed district, and the soil and water conservation districts affected by the watershed district;

(2) a general description of the purpose of the watershed district;

(3) a general description of the property included in the watershed district;

(4) a general description of the proposed revised watershed management plan;

(5) the date, time, and location of the hearing; and

(6) a statement that all persons affected or interested in the watershed district may attend and give statements at the revised watershed management plan hearing.

Subd. 6.

Board order.

After the revised watershed management plan hearing, the board must prescribe a revised watershed management plan for the watershed district. The board must send a copy of the order and approved revised watershed management plan to the managers, the county board of each county affected by the watershed district, the commissioner, the director, the Metropolitan Council, where applicable, and soil and water conservation districts affected by the watershed district. The revised watershed management plan approved by the board is the revised watershed management plan for the watershed district.

103D.411 AMENDMENT OF WATERSHED MANAGEMENT PLAN AND REVISED WATERSHED MANAGEMENT PLAN.

The managers may initiate an amendment of a watershed management plan or revised watershed management plan by submitting a petition with the proposed amendment to the board. The board must give notice and hold a hearing on the amendment in the same manner as for the watershed management plan. After the hearing, the board may, by order, approve or prescribe changes in the amendment. The amendment becomes part of the watershed management plan after approval by the board. The board must send the order and approved amendment to the entities that receive an approved watershed management plan under section 103D.401, subdivision 5.

103D.601 PROJECT INITIATED BY MANAGERS.

Subdivision 1.

Requirements.

(a) The managers may initiate a project by resolution of at least a majority of the managers if:

(1) the project is financed by grants totaling at least 50 percent of the estimated project cost; and

(2) the engineer's estimate of costs to parties affected by the watershed district, including assessments against benefited properties but excluding state, federal, or other grants, is not more than $750,000 for the project.

(b) A resolution under this subdivision may not be used to establish a project that has drainage as its essential nature and purpose.

Subd. 2.

Preliminary resolution hearing notice.

(a) The managers must set the time and location for a preliminary resolution hearing on the proposed resolution for the project.

(b) The managers must give notice of the preliminary resolution hearing by publication in a legal newspaper published in the counties affected by the watershed district. The last publication must occur at least ten days before the preliminary resolution hearing.

(c) The preliminary resolution hearing notice must contain:

(1) the date, time, and place of hearing;

(2) the substance of the proposed project resolution;

(3) the means of financing the project; and

(4) a statement that all persons who might be affected by the proposed project or who may be interested in the proposed project may appear and be heard.

(d) Defects in the notice do not invalidate the proceedings.

Subd. 3.

Preliminary report and information.

(a) The managers must have the watershed district engineer or another competent person prepare a preliminary report advising the managers whether the proposed project is feasible and estimating the cost of the project. An error or omission in the preliminary report does not invalidate the proceeding.

(b) The managers may have other helpful information prepared that will aid in determining the desirability and feasibility of the project.

Subd. 4.

Unfavorable preliminary report.

If the preliminary report is unfavorable, the managers must set a time and location for a hearing in the manner provided for the preliminary resolution. After the hearing, the project may be referred back to the watershed district engineer or another competent person for further study and report, or the managers may dismiss the proceeding.

Subd. 5.

Final resolution.

If, after the hearing, the managers determine that the proposed project promotes the public interest and welfare and is practicable and in conformity with the watershed management plan of the watershed district, the managers must adopt a final resolution approving the project and identify the proceeding by name and number.

Subd. 6.

Further procedure.

(a) When a final resolution is adopted, the proceeding must continue as provided for a project initiated by a petition.

(b) After the managers file a statement listing the property benefited, damaged, or otherwise affected by a project with the auditors of counties affected by the project, the proceedings for the project must continue under section 103D.901.

103D.605 PROJECT CONSTRUCTED WITH GOVERNMENT AID OR AS PART OF PLAN.

Subdivision 1.

Required procedure.

The procedure in this section must be followed if:

(1) a project is to be constructed within the watershed district under an agreement between the managers and the state or federal government and the cost of the project is to be paid for in whole or in part by the state or federal government, but the rights-of-way and the cost of the project are assumed by the watershed district; or

(2) the managers are undertaking all or a portion of the basic water management project as identified in the watershed management plan.

Subd. 2.

Board and director reports.

A copy of the project plan must be transmitted to the board and the director. The board and the director must review the project plan and prepare reports on the project. The reports must be transmitted to the managers.

Subd. 3.

Project hearing notice.

(a) After receiving the board's and the director's reports, the managers must set a time and location for a hearing on the proposed project.

(b) The project hearing notice must state:

(1) the time and location of the project hearing;

(2) the general nature of the proposed project;

(3) the estimated cost of the proposed project; and

(4) the method by which the cost of the proposed project is to be paid, including the cost to be allocated to each affected municipality or the state government.

(c) The managers must give notice by publication before the date of the hearing in a legal newspaper, published in the counties where property is to be improved by the proposed project. The last publication must occur between 30 days and ten days before the project hearing.

(d) At least ten days before the project hearing, notice by mail must be given to the director and the municipalities entirely or partly within the project area.

(e) Failure to give mailed notice or defects in the notice do not invalidate the proceedings.

Subd. 4.

Project hearing.

At the project hearing, the managers must hear all parties interested in the proposed project.

Subd. 5.

Establishment order.

After the project hearing, if the managers find that the project will be conducive to public health, will promote the general welfare, and complies with the watershed management plan and the provisions of this chapter, the managers must, by order, establish the project. The establishment order must include the findings of the managers.

103D.611 CONSTRUCTION BY GOVERNMENT AGENCIES.

Subdivision 1.

Project plan to director and board.

If a project is to be constructed within the watershed district under a contract between the watershed district and the state or the federal government, and the cost of construction or implementation is to be paid by the governmental agency but the rights-of-way, legal, and general expenses of the improvement are to be paid by the watershed district, the managers shall forward a copy of the project plan to the board and the director. The director shall prepare a director's advisory report and the board shall prepare a board's advisory report.

Subd. 2.

Hearing notice.

(a) The managers shall hold a public hearing on the proposed contract following publication of the hearing notice.

(b) The hearing notice must be published once each week for two successive weeks before the date of the hearing in a legal newspaper published in the counties where a part or all of the affected waters and lands are located. The last publication must occur at least ten days before the hearing. The notice must state the time and place of hearing, the general nature of the proposed improvement, its estimated cost, and the area proposed to be assessed.

(c) At least ten days before the hearing, notice must be mailed to each resident owner, as shown on the county auditor's most recent records maintained for taxation purposes, within the area proposed to be assessed, and to the director, and to each public body within the area to be assessed and likely to be affected. Failure to give mailed notice or defects in the notice do not invalidate the proceedings.

Subd. 3.

Hearing.

At the time and place specified in the notice, the managers shall hear all interested parties for and against the proposed project. All questions relative to the project must be determined on evidence presented at the hearing. If the managers find that the project will be conducive to public health and will promote the general welfare, and that it complies with this chapter, the managers shall make findings accordingly, authorize the project, and make the proposed contract or other arrangement.

Subd. 4.

Appraisal.

(a) After authorizing the project, the managers shall appoint three disinterested resident owners of the state to act as appraisers.

(b) After the appraisers sign an oath to faithfully and impartially perform their duties, they shall, with or without the engineer, determine the benefits and damages to property affected by the proposed project. The appraisers shall make a detailed statement and file the statement with the managers showing:

(1) the actual damages that have resulted or will result to individuals, property, or corporations from the construction or implementation of the project; and

(2) a list of property, including highways and corporations, receiving actual benefits by way of drainage, control of floodwaters, or other means authorized in this chapter.

Subd. 5.

Hearing on appraisers' report.

(a) After the appraisers' report and the plans and engineering data prepared by the governmental agency are filed with the managers, the managers shall prepare a detailed statement of all costs, including damages, to be incurred by the watershed district in construction or implementation of the project.

(b) The managers shall order a time and place within the watershed district for a hearing on the appraisers' report by 35 days after the detailed statement of costs is prepared. The managers shall give notice by publication and mailing as provided in subdivision 1 for a hearing on a petition. At the time and place specified in the notice, the managers shall hear all parties interested for and against confirming the appraisers' report.

(c) The managers may order and direct the modification of the assessment of benefits and damages, and amend or change the list of properties reported as benefited or damaged. If the amended reports include property not included in the original report, the managers shall adjourn and publish and mail in the manner for the original notice, the proper notice concerning the property not included in the previous notice.

(d) If upon full hearing the managers find that the benefits resulting from the construction or implementation will be greater than the assessments including damages they shall confirm the appraisers' report.

(e) Persons or political subdivisions affected by the order may appeal the order under this chapter.

Subd. 6.

Assessments and levies.

Proceedings for assessments and levies may be brought under section 103D.901 after the managers file a statement with the auditor of a county that lists the property and corporations benefited or damaged or otherwise affected by a project as found by the appraisers and approved by the managers.

Subd. 7.

Exempt from normal project initiation.

Section 103D.701 relating to project initiation does not apply to projects of the watershed district constructed under contract as provided in this section.

Subd. 8.

Acquiring property.

(a) If the watershed district is required to acquire an interest in real property under this section or convey an interest in real property to the federal government, the managers shall, before the filing of the appraisers' report, record a notice of the pendency of a proceeding initiated by the managers to acquire the lands to be conveyed to the federal government. The notice of pendency must be recorded in the office of the county recorder of the affected county. The notice must state the purpose for which the lands are to be taken.

(b) By 20 days before the hearing on the appraisers' report, in addition to the notice required by subdivision 2, the notice of the hearing must be served on the owners of the property to be acquired, in the same manner as the summons in a civil action. The notice must:

(1) describe the property;

(2) state by whom and for what purpose the property is to be taken;

(3) give the names of all persons appearing of record or known to the managers to be the owners;

(4) state that appraisers have been appointed as provided by subdivision 4, to determine the benefits and damages; and

(5) state that a hearing will be held by the managers on the appraisers' report at the time and place specified in the notice.

(c) After the managers have confirmed the appraisers' report listing the property to be benefited or damaged as provided in subdivision 5, the managers have all rights of possession and entry conferred in other cases of condemnation by chapter 117.

(d) After confirmation of the appraisers' report, the attorney for the managers shall make a certificate describing the property taken and the purpose for the taking, and reciting the fact of payment of all awards determined by the appraisers appointed by the managers or judgments in relation to the land. When approved by the managers, the certificate establishes the right of the watershed district in the property taken. The certificate must be filed for record with the county recorder of the county where the property is located. The filing constitutes notice to all parties of the title of the watershed district to the property described in the certificate.

(e) After the certificate is filed, the managers may convey the property and interests in the property acquired to the federal government, if necessary.

103D.711 ENGINEER'S REPORT.

Subdivision 1.

Determination.

If the managers determine that a proper project petition has been filed, the proposed project promotes the public interest and welfare, is practicable and conforms with the watershed management plan of the watershed district, the managers must:

(1) identify the project proceeding by name and number; and

(2) designate an engineer to make surveys, maps, and a report on the proposed project.

103F.511 DEFINITIONS.

Subd. 8b.

Reinvest in Minnesota reserve program.

"Reinvest in Minnesota reserve program" means the program established under section 103F.515.

103F.950 BEAVER DAMAGE CONTROL GRANTS.

Subdivision 1.

Establishment.

The Board of Water and Soil Resources shall establish a beaver damage control grant program to provide grants for the control of beaver activities causing damage to public waters, roads, and ditches and adjacent private property. The grants may be made to:

(1) a joint powers board established under section 471.59 by two or more governmental units;

(2) soil and water conservation districts; and

(3) Indian tribal governments.

Subd. 2.

Grant amount.

The board may provide up to 50 percent of the costs of implementing a beaver damage control program by a joint powers board.

Subd. 3.

Awarding grants.

Applications for grants must be made to the board on forms prescribed by the board. The board shall consult with town supervisors and county commissioners representing different areas of the state in developing the application form. A joint powers board seeking a grant may be required to supply information on the beaver control program it has adopted, the extent of the problem in the geographic area covered by the joint powers agreement, and the ability of the joint powers board to match the state grant. The board may prioritize the grant applications based upon the information requested as part of the grant application.

Subd. 4.

Report.

(a) Within one year after receiving a grant under this section, a joint powers board must report to the Board of Water and Soil Resources on the joint powers board's efforts to control beaver in the area.

(b) By December 15 of each even-numbered year, the board shall report to the senate and house of representatives environment and natural resources policy and finance committees on the efforts under this section to control beaver.

Repealed Minnesota Rule: H3550-2

8400.3000 AUTHORITY.

Minnesota Statutes, sections 84.95, 103A.209, and 103F.501 to 103F.531, authorize the state board, in consultation with districts, private groups, and state and federal agencies, to implement a program to acquire easements on land to retire certain marginal agricultural land and protect environmentally sensitive areas to enhance soil and water quality, minimize damage to flood-prone areas, sequester carbon, and support native plant, fish, and wildlife habitats and to reestablish perennial cover and restore wetlands on that land. Parts 8400.3000 to 8400.3930 provide procedures and criteria to be followed by the state board and district boards in implementing Minnesota Statutes, sections 103F.501 to 103F.531. The state board shall implement the reinvest in Minnesota reserve program with district boards when practical, but may also implement the program directly.

8400.3030 DEFINITIONS.

Subpart 1.

Scope.

The definitions in this part apply to parts 8400.3000 to 8400.3930.

Subp. 2.

Agricultural crop production.

"Agricultural crop production" means an agricultural activity:

A.

including but not limited to tillage, planting, or harvesting operations; and

B.

devoted to the production of horticultural, row, close grown, introduced pasture, or introduced hayland crops.

Subp. 3.

[Repealed, 14 SR 1928]

Subp. 3a.

Agricultural land.

"Agricultural land" means land devoted for use as pasture or hayland for domestic livestock or dairy animals, or to agricultural crop production, or to growing nursery stocks, or for use as animal feedlots, and may include contiguous land associated with these uses.

Subp. 4.

Annual plan.

"Annual plan" means a plan prepared by the district under Minnesota Statutes, section 103C.331, subdivision 11, and according to the most recent version of the Guidelines for Soil and Water Conservation District Comprehensive and Annual Plans published by the state board. That publication is subject to periodic change. The current version is available at the district office and state board office and is incorporated by reference.

Subp. 5.

Approved practice.

"Approved practice" means a soil and water conservation practice or wildlife habitat enhancement that may be established on an easement area and is described in the easement program practice specifications.

Subp. 6.

[Repealed, 37 SR 1277]

Subp. 6a.

[Repealed, 37 SR 1277]

Subp. 7.

[Repealed, 14 SR 1928]

Subp. 8.

[Repealed, 19 SR 550]

Subp. 9.

Conservation agreement.

"Conservation agreement" means a written contract stating the terms and conditions for conveying a conservation easement by the landowner to the state.

Subp. 10.

Conservation easement.

"Conservation easement" has the meaning given for "conservation easement" in Minnesota Statutes, section 84C.01, paragraph (1).

Subp. 10a.

[Repealed, 37 SR 1277]

Subp. 10b.

Conservation easement program.

"Conservation easement program" refers to both the RIM reserve program, as defined in subpart 42, and the permanent wetlands preserve program, as defined in subpart 36a.

Subp. 11.

Conservation plan.

"Conservation plan" means a written description and map of the approved practices that must be applied to or that already exist on the easement area.

Subp. 11a.

Cost-shared practice.

"Cost-shared practice" means an approved practice which qualifies for cost-sharing through a conservation easement program administered by the state board.

Subp. 12.

[Repealed, 19 SR 550]

Subp. 13.

[Repealed, 19 SR 550]

Subp. 14.

District.

"District" means a soil and water conservation district organized under Minnesota Statutes, chapter 103C.

Subp. 15.

District board.

"District board" means the board of supervisors of a soil and water conservation district organized under Minnesota Statutes, chapter 103C.

Subp. 16.

[Repealed, 19 SR 550]

Subp. 17.

District technical representative.

"District technical representative" means a district employee or other designee assigned by the district who has expertise in the design and application of approved practices.

Subp. 17a.

Drained wetland.

"Drained wetland" means a former natural wetland that has been altered by draining, dredging, filling, leveling, or other manipulation sufficient to reduce its natural function.

Subp. 17b.

Easement program practice specifications.

"Easement program practice specifications" means the detailed descriptions of the approved practices that are allowed on lands enrolled in the conservation easement programs.

Subp. 18.

[Repealed, 19 SR 550]

Subp. 19.

[Repealed, 37 SR 1277]

Subp. 20.

[Repealed, 37 SR 1277]

Subp. 20a.

[Repealed, 37 SR 1277]

Subp. 20b.

Farmed wetland.

"Farmed wetland" means a wetland, as defined in subpart 48, that has been devoted to agricultural crop production, as defined in subpart 2, since December 23, 1985.

Subp. 21.

[Repealed, 19 SR 550]

Subp. 22.

[Repealed, 19 SR 550]

Subp. 23.

Food plot.

"Food plot" means an area established for the purpose of providing food for wildlife.

Subp. 24.

[Repealed, 37 SR 1277]

Subp. 25.

[Repealed, 37 SR 1277]

Subp. 26.

[Repealed, 37 SR 1277]

Subp. 27.

Individual.

Individual" means a person or legal entity, whether or not a resident of Minnesota.

Subp. 28.

[Repealed, 37 SR 1277]

Subp. 29.

Introduced hayland.

"Introduced hayland" means an area devoted to the production of forage that has been cultivated in a rotation of row crops or small grains or interseeded with introduced or native species at least twice during the ten years prior to applying for enrollment in a conservation easement program. These areas must have been harvested by mechanical methods at least two years during the five years prior to applying for enrollment in a conservation easement program.

Subp. 30.

Introduced pasture.

"Introduced pasture" means an area devoted to the production of forage that has been cultivated in a rotation of row crops or small grains or interseeded with introduced or native species at least twice during the ten years prior to applying for enrollment in a conservation easement program. These areas must have been harvested by grazing at least two years during the five years prior to applying for enrollment in a conservation easement program.

Subp. 31.

Landowner.

"Landowner" means an individual or entity that is not prohibited from owning agricultural land under Minnesota Statutes, section 500.24, and who either owns eligible land or is purchasing eligible land under a contract for deed in Minnesota.

Subp. 31a.

Land with crop history.

"Land with crop history" means land that has produced horticultural, row, or close grown crops or that has been enrolled at a cropland rate in a federal or state conservation program at least two of the five years prior to applying for enrollment in a conservation easement program, or land that meets the definition of introduced hayland in subpart 29, or land that meets the definition of introduced pasture in subpart 30. For the purposes of parts 8400.3000 to 8400.3930, land with crop history includes acres devoted to "set aside" or "conserving use" for the United States Department of Agriculture programs.

Subp. 32.

[Repealed, 37 SR 1277]

Subp. 33.

Marginal agricultural land.

"Marginal agricultural land" means land that is:

A.

composed of class IIIe, IVe, V, VI, VII, or VIII land as identified in the land capability classification system of the United States Department of Agriculture; or

B.

similar to land described under item A and identified under a land classification system selected by the board.

Subp. 33a.

Pasture.

"Pasture" means land used for grazing by domestic livestock and land which is not considered land with crop history as defined in subpart 31a.

Subp. 33b.

Pastured hillside.

"Pastured hillside" means land on a hillside that is used for pasture as defined in subpart 33a or used for introduced pasture as defined in subpart 30.

Subp. 34.

[Repealed, 19 SR 550]

Subp. 35.

[Repealed, 19 SR 550]

Subp. 36.

Perennial cover.

"Perennial cover" means the water area created by restoring a drained wetland or the perennial vegetation established under a conservation easement program, or the perennial vegetation or the water or wetland areas that already exist on the easement area.

Subp. 36a.

Permanent wetlands preserve program.

"Permanent wetlands preserve program" means the program established under Minnesota Statutes, section 103F.516.

Subp. 37.

[Repealed, 19 SR 550]

Subp. 38.

[Repealed, 19 SR 550]

Subp. 39.

[Repealed, 19 SR 550]

Subp. 39a.

Public waters.

"Public waters" means waters as defined in Minnesota Statutes, section 103G.005, subdivision 15, and inventoried under Minnesota Statutes, section 103G.201. A copy of the inventory is available in the district office.

Subp. 39b.

Public waters wetlands.

"Public waters wetlands" means wetlands as defined in Minnesota Statutes, section 103G.005, subdivision 15a.

Subp. 39c.

[Repealed, 37 SR 1277]

Subp. 40.

[Repealed, 37 SR 1277]

Subp. 41.

[Repealed, 19 SR 550]

Subp. 42.

RIM reserve program.

"RIM reserve program" means the program established in Minnesota Statutes, section 103F.515.

Subp. 42a.

Riparian land.

"Riparian land" means land adjacent to public waters, drainage systems, wetlands, or locally designated priority waters.

Subp. 43.

Screening committee.

"Screening committee" means a group established by the district board to assist in implementing the conservation easement programs. The screening committee is chaired by a district board member and is composed of representatives of private, state, and local organizations or clubs, and local, state, and federal agencies with an interest in the conservation easement programs.

Subp. 43a.

Sensitive groundwater area.

"Sensitive groundwater area" means a geographic area defined by natural features where there is a significant risk of groundwater degradation from activities conducted at or near the land surface. These areas may be identified by mapping or other appropriate methods determined by the commissioner of natural resources and the state board. Wellhead protection areas and land that is adjacent and draining to a sinkhole may be designated as a sensitive groundwater area.

Subp. 44.

[Repealed, 37 SR 1277]

Subp. 45.

Soil and water conservation practice.

"Soil and water conservation practice" means structural or vegetative practices applied to land for the purposes of controlling soil erosion, sediment, agricultural nutrients or waste, or other water pollutants.

Subp. 46.

[Repealed, 37 SR 1277]

Subp. 47.

[Repealed, 14 SR 1928]

Subp. 47a.

State board.

"State board" means the Board of Water and Soil Resources.

Subp. 48.

Wetland.

"Wetland" means wetlands as defined in Minnesota Statutes, section 103G.005, subdivision 19.

8400.3110 DURATION OF CONSERVATION EASEMENTS.

For purposes of the RIM reserve program, a conservation easement may be permanent or of limited duration. A conservation easement acquired on restorable drained wetlands, replacement wetlands, or land for highway windbreak purposes, must be of permanent duration. A conservation easement of limited duration may be acquired on other eligible land within a district if it is for a period not less than 20 years and only if the state board has approved enrollment of limited duration conservation easements in that district.

All permanent wetlands preserve program conservation easements must be of permanent duration.

8400.3210 DELEGATION OF PROGRAM TO ANOTHER DISTRICT.

A district board may enter into an agreement with other district boards as authorized by Minnesota Statutes, section 103C.231, to delegate to another district board the responsibility for administering any conservation easement program of the state board. Where such delegation has been mutually agreed upon, each district board must so notify all landowners in their respective district and each district must so notify the state board.

8400.3260 LAND IN MORE THAN ONE DISTRICT.

If an application involves land in more than one district, the participating districts may jointly delegate to one of the districts the responsibility for review and prioritization of that application. If that application is accepted for enrollment, the affected districts may also jointly delegate to one of the districts the responsibility for completing all of the tasks necessary for conveyance of the conservation easement to the state board.

8400.3300 CRITERIA FOR SCREENING COMMITTEE REVIEW OF APPLICATIONS.

The state board may direct districts to utilize a local screening process or committee to prioritize local project areas or applications. The criteria for screening committee prioritization are as follows:

A.

consistency with the purpose and policy of the respective conservation easement program;

B.

the parcel's potential impact on reducing soil erosion and sedimentation, improving water quality, reducing flooding, and enhancing fish and wildlife habitat;

C.

compatibility with established priorities of the organizations and agencies participating in the screening process; and

D.

highest priority must be given to permanent easements pursuant to Minnesota Statutes, section 103F.515, subdivision 2, paragraph (e).

8400.3400 CONSERVATION AGREEMENT FOR EASEMENT.

The district board shall direct its staff or the district technical representative to develop conservation agreements as prescribed by the state board and in a recordable form for all approved applications which incorporate the minimum requirements stated in Minnesota Statutes, section 103F.515, subdivisions 4 and 5. In addition, each conservation agreement must require the landowner to:

A.

pay, when due, all taxes and assessments that may be levied against the easement area;

B.

remove any existing structures as required by the district board or the state board prior to the conveyance of the conservation easement with all associated costs being the responsibility of the landowner, and not place, erect, or construct any temporary or permanent structures on the easement area;

C.

remove any existing hazardous and toxic substances or any pollutants and contaminants prior to the conveyance of the conservation easement with all associated costs being the responsibility of the landowner, and not place such substances, pollutants, or contaminants on the easement area;

D.

properly seal all abandoned wells on the easement area prior to the conveyance of the conservation easement, with all associated costs being the responsibility of the landowner; and

E.

allow the state board and its employees and agents to enter the easement area for the purposes of inspection and enforcement of the terms and conditions of the conservation easement.

8400.3460 TITLE REQUIREMENTS.

The landowner must have good and marketable title that is insurable under a title insurance policy. In addition, the title must not be subject to any prior liens or encumbrances determined to be objectionable by the Attorney General. Objectionable title defects, liens, or encumbrances must be promptly removed or corrected by the landowner prior to easement conveyance.

8400.3600 RENEWAL AND EXTENSION OF CONSERVATION EASEMENTS.

A.

When a conservation easement of limited duration expires, a new conservation agreement and conservation easement for an additional period of not less than 20 years may be acquired by agreement of the state board and the landowner under the rules in force at that time. The state board may adjust payment rates as a result of renewing a conservation agreement and conservation easement after examining the condition of the established cover, conservation practices, and land values.

B.

The easement duration may be lengthened through mutual agreement of the current landowner with the state board, in consultation with the commissioners of agriculture and natural resources, if the state board determines that the changes are consistent with the purpose of the conservation easement program. When converting limited duration easements to permanent easements, the payment is the difference between the amount that would be paid per acre for the permanent easement as established for the most recent sign-up period and the amount already paid for the limited duration easement on the area.

8400.3610 ALTERATION, RELEASE, OR TERMINATION OF CONSERVATION EASEMENTS.

The state board may alter, release, or terminate a conservation easement after consultation with the commissioners of agriculture and natural resources. The board may alter, release, or terminate an easement only if the state board determines that the public interests and general welfare are better served by the alteration, release, or termination.

The state board must be provided the following information at least 30 days prior to a state board meeting, before the state board will consider a request to alter, release, or terminate a conservation easement:

A.

a copy of the letter from the landowner to the district board justifying the change and identifying how the public interest and general welfare will be better served;

B.

a letter from the district board recommending either approval or disapproval of the proposed change;

C.

a letter from the Department of Natural Resources recommending either approval or disapproval of the proposed change; and

D.

other supporting documents, including:

(1)

an aerial photo identifying the requested change;

(2)

a soil survey map of the area;

(3)

cropping history information; and

(4)

other pertinent documentation that will support the request.

The state board reserves the right to require special provisions to ensure at least equal resource value as a condition of approving the request. The state board must be compensated by the landowner for all damages and loss of benefits to the conservation easement and the state board may also require reimbursement for administrative expenses and costs incurred in the alteration, release, or termination of a conservation easement.

8400.3630 APPROVED PRACTICES.

Subpart 1.

Criteria.

Approved practices must have as their primary purpose the control of soil erosion or sedimentation, protection or improvement of water quality, reduction of flooding, or enhancement of fish and wildlife habitat. Approved practices may be further specified in the easement program policies or practice specifications. Practices that do not qualify as approved practices include, but are not limited to, Christmas tree plantations and fruit orchards. Food plots are not eligible for conservation easement program cost-sharing, but are considered an approved practice and, therefore, are allowed on enrolled acres as specified in the easement conservation plan.

Subp. 2.

Establishment of approved practices.

A landowner is responsible for the establishment of all approved practices on the easement area in accordance with the easement program practice specifications. Establishment of approved practices must be monitored by the district board or its delegate to ensure compliance with the conservation plan and the conservation easement. Upon establishment or partial completion of an approved practice, a district technical representative shall certify whether or not the approved practice, in whole or part, has been satisfactorily performed.

8400.3700 COST-SHARED PRACTICES.

Subpart 1.

Approved practices eligible for cost-sharing.

The state board shall determine which approved practices are eligible for conservation easement program cost-sharing, consistent with the criteria as described in part 8400.3630, subpart 1.

Subp. 2.

Eligible costs for cost-shared practices.

A.

Upon satisfactory performance under part 8400.3630, subpart 2, the landowner shall present receipts or invoices to the district board, or its delegate, of the costs incurred in the installation of the cost-shared practice. The district board shall review the receipts or invoices to determine the costs eligible for conservation easement program payment. If the district board determines that the costs requested for reimbursement are reasonable and necessary, it shall recommend payment to the landowner by submitting certification of satisfactory performance and providing documentation of reimbursable practice costs to the state board on forms provided by the state board. If the district board determines that certain costs requested for reimbursement are not eligible or reasonable, it shall notify the landowner in writing of this determination. The landowner may request reconsideration of this determination by the district board within 30 days of receipt of the determination. If additional costs are determined to be eligible and reasonable, the district board shall then recommend payment for the approved amount. The state board reserves the right to approve whether costs requested for reimbursement are eligible and reasonable.

B.

Eligible costs for approved practices are limited to those prescribed by the state board as allowed in Minnesota Statutes, section 103F.515, subdivision 6.

C.

The state board reserves the right to approve and provide funding for cost-shared practices.

Subp. 3.

Payment for in-kind services.

In-kind services provided by the landowner including, but not limited to, earthwork, seedbed preparation, and seeding, may be credited to the landowner's share of the total cost of establishing the cost-shared practice. The district board shall credit only those costs it determines to be practical and reasonable and may approve receipts or invoices directly or through its delegate.

Subp. 4.

Funds from other sources.

Conservation easement program cost-sharing funds may be augmented by funds from other agencies, organizations, or individuals.

8400.3730 FAILURE OF APPROVED PRACTICES.

Subpart 1.

Cost-shared practices.

A landowner is not in violation of the conservation easement if the failure, in whole or part, of a cost-shared practice was caused by reasons beyond the landowner's control such as extreme weather conditions. In these instances, the district board may recommend to the state board that conservation easement program cost-sharing funds be encumbered for reestablishment of the cost-shared practice. The encumbrance must comply with the limits prescribed by the state board. In no case may a district board authorize conservation easement program financial assistance to a landowner for the reestablishment of cost-shared practices that were removed or altered by the landowner, or that have failed due to improper maintenance during the term of the conservation easement.

Subp. 2.

All other approved practices.

A landowner is not in violation of the conservation easement if the failure of approved practices was caused by reasons beyond the landowner's control.

8400.3800 OPERATION AND MAINTENANCE.

A landowner is responsible for the operation and maintenance of approved practices designated in the conservation plan.

8400.3830 VIOLATIONS AND ENFORCEMENT.

Subpart 1.

District board action.

The district board may take such measures as are necessary to ensure landowner compliance with the conservation agreement, conservation easement, and conservation plan. If the district board is unsuccessful at obtaining landowner compliance, the district board shall notify the state board of the violation and may recommend appropriate measures to be taken to correct violations.

Subp. 2.

State board action.

Upon notification or discovery of a violation of a conservation agreement, conservation easement, or conservation plan, the state board shall take action to resolve the violation.

A landowner who violates the terms of a conservation agreement, conservation easement, or conservation plan under this chapter, or induces, assists, or allows another to do so, is liable to the state for treble damages if the violation is willful or double damages if the violation is not willful. The amount of damages is the amount needed to make the state whole or the amount the landowner has gained due to the violation, whichever is greater.

If the state board is not successful in resolving the violation, it may request the state attorney general to commence legal action to enforce the conservation agreement, conservation easement, or conservation plan.

Subp. 3.

Attorney general action.

Upon request by the state board, the attorney general may commence an action for specific performances, injunctive relief, damages, including attorney fees, and any other appropriate relief to enforce Minnesota Statutes, sections 103F.501 to 103F.531 in district court in the county where all or part of the violation is alleged to have been committed, or where the landowner resides or has a principal place of business.

Conservation easements remain in effect even if maintenance violations have occurred.

8400.3930 RECONSIDERATION AND APPEAL.

Subpart 1.

Reconsideration by district board.

An affected landowner may request the district board to reconsider its:

A.

recommendation or determination regarding that landowner's application for enrollment in a conservation easement program;

B.

recommendation or determination to cancel that landowner's conservation agreement;

C.

determination regarding that landowner's eligible and allowable costs to be reimbursed by the state board;

D.

request to that landowner to correct any alleged noncompliant conditions regarding that landowner's enrolled easement area; or

E.

recommendation to disapprove that landowner's request to change an enrolled easement area.

Subp. 2.

Time for reconsideration by district board.

A landowner requesting reconsideration under subpart 1 shall mail a written request to the district board within 15 days of receipt of notice of the district board's determination or recommendation of the matters specified in subpart 1. The request for reconsideration shall include the specific reasons for the request and evidence to support the landowner's claims. The district board shall notify the landowner in writing of its final recommendation and the reasons for the recommendation within 60 days of receipt of the landowner's request for reconsideration.

Subp. 3.

Appeal to state board.

An affected landowner may appeal to the state board from a final recommendation made by the district board pursuant to subpart 2. The landowner shall mail a written appeal to the state board within 15 days after receipt of the district board's final recommendation. The appeal shall include the specific reasons for the request and evidence to support the landowner's claims. The state board shall notify in writing the landowner and the district board of its final decision and the reasons for the decision within 60 days of receipt of the landowner's appeal.

Subp. 4.

[Repealed, 14 SR 1928]