1.1                          A bill for an act 
  1.2             relating to natural resources; modifying the 
  1.3             conditions for easement acquisition under the reinvest 
  1.4             in Minnesota reserve program; appropriating money for 
  1.5             conservation easements; authorizing the sale of state 
  1.6             bonds; amending Minnesota Statutes 2002, sections 
  1.7             103F.505; 103F.515, subdivisions 1, 2, 4, 5. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 103F.505, is 
  1.10  amended to read: 
  1.11     103F.505 [PURPOSE AND POLICY.] 
  1.12     It is the purpose of sections 103F.505 to 103F.531 to keep 
  1.13  certain marginal agricultural land out of crop production to 
  1.14  protect soil and water quality, prevent flood damage, and 
  1.15  support fish and wildlife habitat.  It is state policy to 
  1.16  encourage the retirement of marginal, highly erodible land, 
  1.17  particularly land adjacent to public waters, drainage systems, 
  1.18  wetlands, and locally designated priority waters, from crop 
  1.19  production and to reestablish a cover of perennial vegetation.  
  1.20     Sec. 2.  Minnesota Statutes 2002, section 103F.515, 
  1.21  subdivision 1, is amended to read: 
  1.22     Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The board, in 
  1.23  consultation with the commissioner of agriculture and the 
  1.24  commissioner of natural resources, shall establish and 
  1.25  administer a conservation reserve program.  The board shall 
  1.26  implement sections 103F.505 to 103F.531.  Selection of land for 
  2.1   the conservation reserve program must be based on its potential 
  2.2   for fish and wildlife production, reducing erosion, preventing 
  2.3   flood damage, and protecting water quality.  
  2.4      Sec. 3.  Minnesota Statutes 2002, section 103F.515, 
  2.5   subdivision 2, is amended to read: 
  2.6      Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
  2.7   conservation reserve program if the land meets the requirements 
  2.8   of paragraphs (b) and (c).  
  2.9      (b) Land is eligible if the land: 
  2.10     (1) is marginal agricultural land; 
  2.11     (2) is adjacent to marginal agricultural land and is either 
  2.12  beneficial to resource protection or necessary for efficient 
  2.13  recording of the land description; 
  2.14     (3) consists of a drained wetland; 
  2.15     (4) is land that with a windbreak would be beneficial to 
  2.16  resource protection; 
  2.17     (5) is land in a sensitive groundwater area; 
  2.18     (6) is riparian land; 
  2.19     (7) is cropland or noncropland adjacent to restored 
  2.20  wetlands to the extent of up to four acres of cropland or one 
  2.21  acre of noncropland for each acre of wetland restored; 
  2.22     (8) is a woodlot on agricultural land; 
  2.23     (9) is abandoned building site on agricultural land, 
  2.24  provided that funds are not used for compensation of the value 
  2.25  of the buildings; or 
  2.26     (10) is land on a hillside used for pasture; or 
  2.27     (11) is land that is subject to frequent flooding events.  
  2.28     (c) Eligible land under paragraph (a) must: 
  2.29     (1) be owned by the landowner, or a parent or other blood 
  2.30  relative of the landowner, for at least one year before the date 
  2.31  of application; 
  2.32     (2) be at least five acres in size, except for a drained 
  2.33  wetland area, riparian area, windbreak, woodlot, or abandoned 
  2.34  building site, or be a whole field as defined by the United 
  2.35  States Agricultural Stabilization and Conservation Services; 
  2.36     (3) not be set aside, enrolled or diverted under another 
  3.1   federal or state government program unless enrollment in the 
  3.2   conservation reserve program would provide additional 
  3.3   conservation benefits or a longer term of enrollment than under 
  3.4   the current federal or state program; and 
  3.5      (4) have been in agricultural crop production for at least 
  3.6   two of the last five years before the date of application except 
  3.7   drained wetlands, riparian lands, woodlots, abandoned building 
  3.8   sites, or land on a hillside used for pasture. 
  3.9      (d) In selecting drained wetlands for enrollment in the 
  3.10  program, the highest priority must be given to wetlands with a 
  3.11  cropping history during the period 1976 to 1985. 
  3.12     (e) In selecting land for enrollment in the program, 
  3.13  highest priority must be given to permanent easements that are 
  3.14  consistent with the purposes stated in section 103F.505.  
  3.15     Sec. 4.  Minnesota Statutes 2002, section 103F.515, 
  3.16  subdivision 4, is amended to read: 
  3.17     Subd. 4.  [NATURE OF PROPERTY RIGHTS ACQUIRED.] (a) A 
  3.18  conservation easement must prohibit: 
  3.19     (1) alteration of wildlife habitat and other natural 
  3.20  features, unless specifically approved by the board; 
  3.21     (2) agricultural crop production, unless: 
  3.22     (i) specifically approved by the board for wildlife 
  3.23  management purposes; or 
  3.24     (ii) for the purpose of cutting hay on lands subject to 
  3.25  agreements entered into after the effective date of this 
  3.26  section; and 
  3.27     (3) grazing of livestock except, for: 
  3.28     (i) agreements entered before the effective date of Laws 
  3.29  1990, chapter 391, grazing of livestock may be allowed only if 
  3.30  approved by the board after consultation with the commissioner 
  3.31  of natural resources,; 
  3.32     (ii) in the case of severe drought, or a local emergency 
  3.33  declared under section 12.29; and or 
  3.34     (iii) agreements entered into after the effective date of 
  3.35  this section 
  3.36     (4) spraying with chemicals or mowing, except as necessary 
  4.1   to comply with noxious weed control laws or emergency control of 
  4.2   pests necessary to protect public health. 
  4.3      (b) The easement must require that the landowner control 
  4.4   noxious weeds in accordance with sections 18.77 to 18.88. 
  4.5      (c) A conservation easement is subject to the terms of the 
  4.6   agreement provided in subdivision 5. 
  4.7      (c) (d) A conservation easement must allow repairs, 
  4.8   improvements, and inspections necessary to maintain public 
  4.9   drainage systems provided the easement area is restored to the 
  4.10  condition required by the terms of the conservation easement.  
  4.11     Sec. 5.  Minnesota Statutes 2002, section 103F.515, 
  4.12  subdivision 5, is amended to read: 
  4.13     Subd. 5.  [AGREEMENTS BY LANDOWNER.] The board may enroll 
  4.14  eligible land in the conservation reserve program by signing an 
  4.15  agreement in recordable form with a landowner in which the 
  4.16  landowner agrees: 
  4.17     (1) to convey to the state a conservation easement that is 
  4.18  not subject to any prior title, lien, or encumbrance; 
  4.19     (2) to seed the land subject to the conservation easement, 
  4.20  as specified in the agreement, to establish and maintain 
  4.21  perennial cover of either a grass-legume mixture or native 
  4.22  grasses for the term of the easement, at seeding rates 
  4.23  determined by the board; or to plant trees or carry out other 
  4.24  long-term capital improvements approved by the board for soil 
  4.25  and water conservation or wildlife management; 
  4.26     (3) to convey to the state a permanent easement for the 
  4.27  wetland restoration; and 
  4.28     (4) that other land supporting natural vegetation owned or 
  4.29  leased as part of the same farm operation at the time of 
  4.30  application, if it supports natural vegetation or has not been 
  4.31  used in agricultural crop production, will not be converted to 
  4.32  agricultural crop production or pasture; and 
  4.33     (5) that the easement duration may be lengthened through 
  4.34  mutual agreement with the board in consultation with the 
  4.35  commissioners of agriculture and natural resources if they 
  4.36  determine that the changes effectuate the purpose of the program 
  5.1   or facilitate its administration.  
  5.2      Sec. 6.  [APPROPRIATION.] 
  5.3      (a) $23,200,000 is appropriated to the Board of Water and 
  5.4   Soil Resources to acquire easements under Minnesota Statutes, 
  5.5   section 103F.515, for the purpose of the conservation reserve 
  5.6   enhancement program.  Of the amount appropriated: 
  5.7      (1) $20,000,000 is from the bond proceeds fund to acquire 
  5.8   easements; and 
  5.9      (2) $3,200,000 is from the general fund for technical or 
  5.10  professional services necessary to acquire easements and 
  5.11  implement easement conservation practices and is available until 
  5.12  spent. 
  5.13     (b) For easements acquired in the northwest region of the 
  5.14  state, the board shall give the highest priority to easements on 
  5.15  land that is subject to frequent flooding. 
  5.16     (c) Notwithstanding Minnesota Statutes, section 103F.515, 
  5.17  subdivision 2, paragraph (e), the board shall not give 
  5.18  preference for permanent easements with money appropriated in 
  5.19  this section. 
  5.20     Sec. 7.  [BOND SALE.] 
  5.21     To provide the money appropriated in this act from the bond 
  5.22  proceeds fund, the commissioner of finance shall sell and issue 
  5.23  bonds of the state in an amount up to $20,000,000 in the manner, 
  5.24  upon the terms, and with the effect prescribed by Minnesota 
  5.25  Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
  5.26  Constitution, article XI, sections 4 to 7. 
  5.27     Sec. 8.  [EFFECTIVE DATE.] 
  5.28     Sections 1 to 7 are effective the day following final 
  5.29  enactment.