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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1991 

                         CHAPTER 354-H.F.No. 1 
           An act relating to wetlands; declaring legislative 
          findings and stating public policy; establishing a 
          program of wetland prioritization and planning; 
          providing for wetland preservation areas and for cost 
          sharing for wetland establishment and restoration; 
          establishing a program for peatland area protection 
          and designating peatland scientific and natural areas; 
          regulating discharge of dredged and fill material into 
          state waters; regulating activities altering the 
          character of wetlands; authorizing bond sales and 
          appropriating proceeds; amending Minnesota Statutes 
          1990, sections 84.085; 103A.201; 103B.155; 103B.231, 
          subdivision 6; 103B.311, subdivision 6; 103E.701, by 
          adding a subdivision; 103F.515, subdivision 2; 
          103G.005, subdivisions 13a, 15, 18, and by adding 
          subdivisions; 103G.141; 103G.221; 103G.225; 103G.231; 
          103G.235; 103G.271, subdivision 6; 272.02, subdivision 
          1; 273.11, subdivision 1, and by adding a subdivision; 
          282.018, subdivision 2; 446A.12, subdivision 1; and 
          645.44, subdivision 8a; proposing coding for new law 
          in Minnesota Statutes, chapters 84; 103B; 103F; and 
          103G; repealing Minnesota Statutes, section 103G.221, 
          subdivisions 2 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                                 POLICY
    Section 1.  [CITATION.] 
    This act may be cited as the "wetland conservation act of 
1991." 
    Sec. 2.  Minnesota Statutes 1990, section 103A.201, is 
amended to read: 
    103A.201 [REGULATORY POLICY.] 
    Subdivision 1.  [POLICY.] To conserve and use water 
resources of the state in the best interests of its people, and 
to promote the public health, safety, and welfare, it is the 
policy of the state that:  
    (1) subject to existing rights, public waters are subject 
to the control of the state; 
    (2) the state, to the extent provided by law, shall control 
the appropriation and use of waters of the state; and 
    (3) the state shall control and supervise activity that 
changes or will change the course, current, or cross section of 
public waters, including the construction, reconstruction, 
repair, removal, abandonment, alteration, or the transfer of 
ownership of dams, reservoirs, control structures, and waterway 
obstructions in public waters.  
    Subd. 2.  [WETLANDS FINDINGS; PUBLIC INTEREST.] (a) 
Wetlands identified in the state under article 6, section 6, do 
not: 
    (1) grant the public additional or greater right of access 
to the wetlands; 
    (2) diminish the right of ownership or usage of the beds 
underlying the wetlands, except as otherwise provided by law; 
    (3) affect state law forbidding trespass on private lands; 
and 
    (4) require the commissioner to acquire access to the 
wetlands. 
    (b) The legislature finds that the wetlands of Minnesota 
provide public value by conserving surface waters, maintaining 
and improving water quality, preserving wildlife habitat, 
providing recreational opportunities, reducing runoff, providing 
for floodwater retention, reducing stream sedimentation, 
contributing to improved subsurface moisture, helping moderate 
climatic change, and enhancing the natural beauty of the 
landscape, and are important to comprehensive water management, 
and that it is in the public interest to:  
    (1) achieve no net loss in the quantity, quality, and 
biological diversity of Minnesota's existing wetlands; 
   (2) increase the quantity, quality, and biological 
diversity of Minnesota's wetlands by restoring or enhancing 
diminished or drained wetlands; 
   (3) avoid direct or indirect impacts from activities that 
destroy or diminish the quantity, quality, and biological 
diversity of wetlands; and 
    (4) replace wetland values where avoidance of activity is 
not feasible and prudent. 

                               ARTICLE 2 

                  WETLAND PRIORITIZATION AND PLANNING 
    Section 1.  Minnesota Statutes 1990, section 103B.155, is 
amended to read: 
    103B.155 [STATE WATER AND RELATED LAND RESOURCE PLAN.] 
    The commissioner of natural resources, in cooperation with 
other state and federal agencies, regional development 
commissions, the metropolitan council, local governmental units, 
and citizens, shall prepare a statewide framework and assessment 
water and related land resources plan for presentation to the 
legislature by November 15, 1975, for its review and approval or 
disapproval.  This plan must relate each of the programs of the 
department of natural resources for specific aspects of water 
management to the others.  The statewide plan must include: 
    (1) regulation of improvements and land development by 
abutting landowners of the beds, banks, and shores of lakes, 
streams, watercourses, and marshes by permit or otherwise to 
preserve them for beneficial use; 
    (2) regulation of construction of improvements on and 
prevention of encroachments in the flood plains of the rivers, 
streams, lakes, and marshes of the state; 
    (3) reclamation or filling of wet and overflowed lands; 
    (4) repair, improvement, relocation, modification or 
consolidation in whole or in part of previously established 
public drainage systems within the state; 
    (5) preservation of wetland areas; 
    (6) management of game and fish resources as related to 
water resources; 
    (7) control of water weeds; 
    (8) control or alleviation of damages by flood waters; 
    (9) alteration of stream channels for conveyance of surface 
waters, navigation, and any other public purposes; 
    (10) diversion or changing of watercourses in whole or in 
part; 
    (11) regulation of the flow of streams and conservation of 
their waters; 
    (12) regulation of lake water levels; 
    (13) maintenance of water supply for municipal, domestic, 
industrial, recreational, agricultural, aesthetic, wildlife, 
fishery, or other public use; 
    (14) sanitation and public health and regulation of uses of 
streams, ditches, or watercourses to dispose of waste and 
maintain water quality; 
    (15) preventive or remedial measures to control or 
alleviate land and soil erosion and siltation of affected 
watercourses or bodies of water; and 
    (16) regulation of uses of water surfaces; and 
    (17) identification of high priority regions for wetland 
preservation, enhancement, restoration, and establishment.  
    Sec. 2.  Minnesota Statutes 1990, section 103B.231, 
subdivision 6, is amended to read: 
    Subd. 6.  [CONTENTS.] (a) The plan shall:  
    (1) describe the existing physical environment, land use, 
and development in the area and the environment, land use, and 
development proposed in existing local and metropolitan 
comprehensive plans; 
    (2) present information on the hydrologic system and its 
components, including drainage systems previously constructed 
under chapter 103E, and existing and potential problems related 
thereto; 
    (3) state objectives and policies, including management 
principles, alternatives and modifications, water quality, and 
protection of natural characteristics; 
    (4) set forth a management plan, including the hydrologic 
and water quality conditions that will be sought and significant 
opportunities for improvement; 
    (5) describe the effect of the plan on existing drainage 
systems; 
    (6) identify high priority areas for wetland preservation, 
enhancement, restoration, and establishment and describe any 
conflicts with wetlands and land use in these areas; 
    (7) describe conflicts between the watershed plan and 
existing plans of local government units; 
    (7) (8) set forth an implementation program consistent with 
the management plan, which includes a capital improvement 
program and standards and schedules for amending the 
comprehensive plans and official controls of local government 
units in the watershed to bring about conformance with the 
watershed plan; and 
    (8) (9) set out a procedure for amending the plan.  
    (b) The board shall adopt rules to establish standards and 
requirements for amendments to watershed plans.  The rules must 
include:  
    (1) performance standards for the watershed plans, which 
may distinguish between plans for urban areas and rural areas; 
    (2) minimum requirements for the content of watershed plans 
and plan amendments, including public participation process 
requirements for amendment and implementation of watershed 
plans; 
    (3) standards for the content of capital improvement 
programs to implement watershed plans, including a requirement 
that capital improvement programs identify structural and 
nonstructural alternatives that would lessen capital 
expenditures; and 
    (4) how watershed plans are to specify the nature of the 
official controls required to be adopted by the local units of 
government, including uniform erosion control, stormwater 
retention, and wetland protection ordinances in the metropolitan 
area.  
    Sec. 3.  Minnesota Statutes 1990, section 103B.311, 
subdivision 6, is amended to read: 
    Subd. 6.  [SCOPE OF PLANS.] Comprehensive water plans must 
include: 
    (1) a description of the existing and expected changes to 
physical environment, land use, and development in the county; 
    (2) available information about the surface water, 
groundwater, and related land resources in the county, including 
existing and potential distribution, availability, quality, and 
use; 
    (3) objectives for future development, use, and 
conservation of water and related land resources, including 
objectives that concern water quality and quantity, and 
sensitive areas, wellhead protection areas, high priority areas 
for wetland preservation, enhancement, restoration, and 
establishment, and related land use conditions, and a 
description of actions that will be taken in affected watersheds 
or groundwater systems to achieve the objectives; 
    (4) a description of potential changes in state programs, 
policies, and requirements considered important by the county to 
management of water resources in the county; 
    (5) a description of conflicts between the comprehensive 
water plan and existing plans of other local units of 
government; 
    (6) a description of possible conflicts between the 
comprehensive water plan and existing or proposed comprehensive 
water plans of other counties in the affected watershed units or 
groundwater systems; 
    (7) a program for implementation of the plan that is 
consistent with the plan's management objectives and includes 
schedules for amending official controls and water and related 
land resources plans of local units of government to conform 
with the comprehensive water plan, and the schedule, components, 
and expected state and local costs of any projects to implement 
the comprehensive water plan that may be proposed, although this 
does not mean that projects are required by this section; and 
    (8) a procedure for amending the comprehensive water plan.  

                        PUBLIC VALUE OF WETLANDS 
    Sec. 4.  [103B.3355] [PUBLIC VALUE CRITERIA FOR WETLANDS.] 
    (a) The board of water and soil resources, in consultation 
with the commissioner of natural resources, shall adopt rules 
establishing criteria to determine the public value of 
wetlands.  The rules must consider the public benefit and use of 
the wetlands and include:  
    (1) criteria to determine the benefits of wetlands for 
water quality, including filtering of pollutants to surface and 
groundwater, utilization of nutrients that would otherwise 
pollute public waters, trapping of sediments, and utilization of 
the wetland as a recharge area for groundwater; 
    (2) criteria to determine the benefits of wetlands for 
floodwater retention, including the potential for flooding in 
the watershed, the value of property subject to flooding, and 
the reduction in potential flooding by the wetland; 
    (3) criteria to determine the benefits of wetlands for 
public recreation, including wildlife habitat, hunting and 
fishing areas, wildlife breeding areas, wildlife viewing areas, 
aesthetically enhanced areas, and nature areas; 
    (4) criteria to determine the benefits of wetlands for 
commercial uses, including wild rice growing and harvesting and 
aquaculture; and 
    (5) criteria to determine the benefits of wetlands for 
other public uses.  
    (b) The criteria established under this subdivision must be 
used to determine the public value of wetlands in the state.  
The board of water and soil resources, in consultation with the 
commissioner of natural resources, shall also use the criteria 
in identifying regions of the state where preservation, 
enhancement, restoration, and establishment of wetlands would 
have high public value.  Before the criteria are adopted, the 
board, in consultation with the commissioner, may identify high 
priority wetland regions using available information relating to 
the factors listed in paragraph (a).  The board shall notify 
local units of government with water planning authority of these 
high priority regions. 

                                ARTICLE 3

                       PERMANENT WETLAND PRESERVES
    Section 1.  [103F.516] [PERMANENT WETLANDS PRESERVE.] 
    Subdivision 1.  [EASEMENTS.] Upon application by a 
landowner, the board may acquire permanent easements on land 
containing type 1, 2, or 3 wetlands, as defined in United States 
Fish and Wildlife Service Circular No. 39 (1971 edition). 
    Subd. 2.  [NATURE OF PROPERTY RIGHTS ACQUIRED.] (a) The 
nature of property rights acquired in an easement under this 
section must be consistent with the provisions of section 
103F.515, subdivision 4. 
    (b) A permanent easement may include four adjacent upland 
acres of land for each acre of wetland included.  
    (c) The easement must require that the landowner control 
noxious weeds in accordance with sections 18.171 to 18.317.  
    (d) The permanent easement must be conveyed to the state in 
recordable form free of any prior title, lien, or encumbrance 
and must provide for a right of entry by the state for 
inspection and correction of violations. 
    Subd. 3.  [PAYMENT.] (a) Payment for the conservation 
easement may be made in ten equal annual payments or, at the 
option of the land owner, in a lump sum at: 
    (1) 50 percent of the township average equalized estimated 
market value of agricultural property as established by the 
commissioner of revenue at the time of easement application for 
wetlands located outside of the metropolitan counties, as 
defined in section 473.121, subdivision 4, and wetlands located 
on agricultural lands within a metropolitan county; or 
    (2) for wetlands located on nonagricultural land within the 
metropolitan county, 20 percent of the township average 
equalized estimated market value of agricultural property as 
established by the commissioner of revenue at the time of 
easement application. 
    (b) Payment for adjacent upland acreage of cropped and 
noncropped land under subdivision 2, paragraph (b), must be made 
at 90 percent and 60 percent, respectively, of the township 
average equalized market value of agricultural land as 
established by the commissioner of revenue at the time of 
easement application. 
    Subd. 4.  [ENFORCEMENT AND CORRECTIONS.] Enforcement of the 
permanent easement and violation corrections is governed by 
section 103F.515, subdivisions 8 and 9. 
    Subd. 5.  [AVAILABLE FUNDS.] A property owner eligible for 
payments under this section must receive payments to the extent 
that funds are available.  If funds are not available and 
payments are not made, restrictions on the use of the property 
owner's wetlands are terminated under this section. 

                               ARTICLE 4 

                       WETLAND PRESERVATION AREAS 
    Section 1.  [103F.612] [WETLAND PRESERVATION AREAS.] 
    Subdivision 1.  [DEFINITION.] For purposes of sections 1 to 
5, "wetland" has the meaning given in article 6, section 6. 
    Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
the county where a wetland is located for designation of a 
wetland preservation area in a high priority wetland area 
identified in a comprehensive local water plan, as defined in 
section 103B.3363, subdivision 3, and located within a high 
priority wetland region designated by the board of water and 
soil resources.  The application must be made on forms provided 
by the board.  If a wetland is located in more than one county, 
the application must be submitted to the county where the 
majority of the wetland is located.  
    (b) The application must contain at least the following 
information and other information the board of soil and water 
resources requires:  
    (1) legal description of the area to be approved, which 
must include an upland strip at least 16-1/2 feet in width 
around the perimeter of wetlands within the area and may include 
total upland area of up to four acres for each acre of wetland; 
    (2) parcel identification numbers where designated by the 
county auditor; 
    (3) name and address of the owner; 
    (4) a witnessed signature of the owner covenanting that the 
land will be preserved as a wetland and will only be used in 
accordance with conditions prescribed by the board of water and 
soil resources; and 
    (5) a statement that the restrictive covenant will be 
binding on the owner and the owner's successors or assigns, and 
will run with the land.  
    (c) The upland strip required in paragraph (b), clause (1), 
must be planted with permanent vegetation other than a noxious 
weed. 
    (d) For registered property, the owner shall submit the 
owner's duplicate certificate of title with the application.  
    Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
application, the county shall determine if all material required 
by subdivision 2 has been submitted and, if so, shall determine 
that the application is complete.  The term "date of application"
means the date the application is determined to be complete by 
the county.  The county shall send a copy of the application to 
the county assessor, the regional development commission, where 
applicable, the board of water and soil resources, and the soil 
and water conservation district where the land is located.  The 
soil and water conservation district shall prepare an advisory 
statement of existing and potential preservation problems or 
conflicts and send the statement to the owner of record and to 
the county.  
    Subd. 4.  [RECORDING.] Within five days of the date of 
application, the county shall forward the application to the 
county recorder, with the owner's duplicate certificate of title 
in the case of registered property.  The county recorder shall 
record the restrictive covenant and return it to the applicant.  
In the case of registered property, the recorder shall 
memorialize the restrictive covenant upon the certificate of 
title and the owner's duplicate certificate of title.  The 
recorder shall notify the county that the covenant has been 
recorded or memorialized.  
    Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
wetland is a wetland preservation area commencing 30 days from 
the date the county determines the application is complete under 
subdivision 3.  
    Subd. 6.  [FEE.] The county may require an application fee, 
not to exceed $50.  
    Subd. 7.  [MAPS.] The board of water and soil resources 
shall maintain wetland preservation area maps illustrating land 
covenanted as wetland preservation areas.  
    Sec. 2.  [103F.613] [DURATION OF WETLAND PRESERVATION 
AREA.] 
    Subdivision 1.  [GENERAL.] A wetland preservation area 
continues in existence until the owner initiates expiration as 
provided in this section.  The date of expiration must be at 
least eight years from the date of notice under this section.  
    Subd. 2.  [TERMINATION BY OWNER.] The owner may initiate 
expiration of a wetland preservation area by notifying the 
county on a form prepared by the board of water and soil 
resources and made available in each county.  The notice must 
describe the property involved and must state the date of 
expiration.  The notice may be rescinded by the owner during the 
first two years following notice.  
    Subd. 3.  [NOTICE AND RECORDING; TERMINATION.] When the 
county receives notice under subdivision 2, the county shall 
forward the original notice to the county recorder for recording 
and shall notify the regional development commission, where 
applicable, the board of water and soil resources, and the 
county soil and water conservation district of the date of 
expiration.  The benefits and limitations of the wetland 
preservation area and the restrictive covenant filed with the 
application cease on the date of expiration.  For registered 
property, the county recorder shall cancel the restrictive 
covenant upon the certificate of title and the owner's duplicate 
certificate of title on the effective date of the expiration.  
    Subd. 4.  [EARLY EXPIRATION.] A wetland preservation area 
may be terminated earlier than as provided in this section only 
in the event of a public emergency upon petition from the owner 
or county to the governor.  The determination of a public 
emergency must be made by the governor through executive order 
under section 4.035 and chapter 12.  The executive order must 
identify the wetland preservation area, the reasons requiring 
the action, and the date of expiration.  
    Sec. 3.  [103F.614] [EMINENT DOMAIN ACTIONS.] 
    Subdivision 1.  [APPLICABILITY.] An agency of the state, a 
public benefit corporation, a local government, or any other 
entity with the power of eminent domain under chapter 117, 
except a public utility as defined in section 216B.02, a 
municipal electric or gas utility, a municipal power agency, a 
cooperative electric association organized under chapter 308A, 
or a pipeline operating under the authority of the Natural Gas 
Act, United States Code, title 15, sections 717 to 717z, shall 
follow the procedures in this section before: 
    (1) acquiring land or an easement in land with a total area 
over ten acres within a wetland preservation area; or 
    (2) advancing a grant, loan, interest subsidy, or other 
funds for the construction of dwellings, commercial or 
industrial facilities, or water or sewer facilities that could 
be used to serve structures in areas that are not for 
agricultural use, that require an acquisition of land or an 
easement in a wetland preservation area.  
    Subd. 2.  [NOTICE OF INTENT.] At least 60 days before an 
action described in subdivision 1, notice of intent must be 
filed with the environmental quality board containing 
information and in the manner and form required by the 
environmental quality board.  The notice of intent must contain 
a report justifying the proposed action, including an evaluation 
of alternatives that would not affect land within a wetland 
preservation area.  
    Subd. 3.  [REVIEW AND ORDER.] The environmental quality 
board, in consultation with affected local governments, shall 
review the proposed action to determine its effect on the 
preservation and enhancement of wetlands and the relationship to 
local and regional comprehensive plans.  If the environmental 
quality board finds that the proposed action might have an 
unreasonable effect on a wetland preservation area, the 
environmental quality board shall issue an order within the 
60-day period under subdivision 2 for the party to refrain from 
the proposed action for an additional 60 days.  
    Subd. 4.  [PUBLIC HEARING.] During the additional 60 days, 
the environmental quality board shall hold a public hearing 
concerning the proposed action at a place within the affected 
wetland preservation area or easily accessible to the wetland 
preservation area.  Notice of the hearing must be published in a 
newspaper having a general circulation within the area.  
Individual written notice must be given to the local governments 
with jurisdiction over the wetland preservation area, the 
agency, corporation or government proposing to take the action, 
the owner of land in the wetland preservation area, and any 
public agency having the power of review or approval of the 
action.  
    Subd. 5.  [JOINT REVIEW.] The review process required in 
this section may be conducted jointly with any other 
environmental impact review by the environmental quality board.  
    Subd. 6.  [SUSPENSION OF ACTION.] The environmental quality 
board may suspend an eminent domain action for up to one year if 
it determines that the action is contrary to wetland 
preservation and that there are feasible and prudent 
alternatives that may have a less negative impact on the wetland 
preservation area.  
    Subd. 7.  [TERMINATION OF WETLAND PRESERVATION AREA.] The 
benefits and limitations of a wetland preservation area, 
including the restrictive covenant for the portion of the 
wetland preservation area taken, end on the date title and 
possession of the property is obtained. 
    Subd. 8.  [ACTION BY ATTORNEY GENERAL.] The environmental 
quality board may request the attorney general to bring an 
action to enjoin an agency, corporation, or government from 
violating this section.  
    Subd. 9.  [EXCEPTION.] This section does not apply to an 
emergency project that is immediately necessary for the 
protection of life and property.  
    Sec. 4.  [103F.615] [LIMITATION ON CERTAIN PUBLIC 
PROJECTS.] 
    Subdivision 1.  [PROJECTS AND ASSESSMENTS PROHIBITED; 
EXCEPTION.] Notwithstanding any other law, construction projects 
for public sanitary sewer systems, public water systems, and new 
public drainage systems are prohibited in wetland preservation 
areas.  New connections between land or buildings in a wetland 
preservation area and public projects are prohibited.  Land in a 
wetland preservation area may not be assessed for public 
projects built in the vicinity of the wetland preservation area. 
    Subd. 2.  [EXCEPTION; OWNER OPTION.] Subdivision 1 does not 
apply to public projects if the owner of the wetland 
preservation area elects to use and benefit from a public 
project.  
    Sec. 5.  [103F.616] [SOIL CONSERVATION PRACTICES.] 
    An owner of a wetland preservation area shall manage the 
area and surrounding upland areas with sound soil conservation 
practices that prevent excessive soil loss according to the 
model ordinance adopted by the board of water and soil 
resources.  The model ordinance and soil loss provisions under 
sections 103F.401 to 103F.455 relating to soil loss apply to all 
upland areas within a wetland preservation area and to 
surrounding upland areas.  A sound soil conservation practice 
prevents excessive soil loss or reduces soil loss to the most 
practicable extent.  
    Sec. 6.  Minnesota Statutes 1990, section 272.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  All property described in this section to 
the extent herein limited shall be exempt from taxation: 
    (1) all public burying grounds; 
    (2) all public schoolhouses; 
    (3) all public hospitals; 
    (4) all academies, colleges, and universities, and all 
seminaries of learning; 
    (5) all churches, church property, and houses of worship; 
    (6) institutions of purely public charity except parcels of 
property containing structures and the structures described in 
section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
and (3), or paragraph (d); 
    (7) all public property exclusively used for any public 
purpose; 
    (8) except for the taxable personal property enumerated 
below, all personal property and the property described in 
section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
exempt.  
    The following personal property shall be taxable:  
    (a) personal property which is part of an electric 
generating, transmission, or distribution system or a pipeline 
system transporting or distributing water, gas, crude oil, or 
petroleum products or mains and pipes used in the distribution 
of steam or hot or chilled water for heating or cooling 
buildings and structures; 
      (b) railroad docks and wharves which are part of the 
operating property of a railroad company as defined in section 
270.80; 
      (c) personal property defined in section 272.03, 
subdivision 2, clause (3); 
      (d) leasehold or other personal property interests which 
are taxed pursuant to section 272.01, subdivision 2; 273.124, 
subdivision 7; or 273.19, subdivision 1; or any other law 
providing the property is taxable as if the lessee or user were 
the fee owner; 
      (e) manufactured homes and sectional structures; and 
      (f) flight property as defined in section 270.071.  
      (9) Personal property used primarily for the abatement and 
control of air, water, or land pollution to the extent that it 
is so used, and real property which is used primarily for 
abatement and control of air, water, or land pollution as part 
of an agricultural operation or as part of an electric 
generation system.  For purposes of this clause, personal 
property includes ponderous machinery and equipment used in a 
business or production activity that at common law is considered 
real property. 
      Any taxpayer requesting exemption of all or a portion of 
any equipment or device, or part thereof, operated primarily for 
the control or abatement of air or water pollution shall file an 
application with the commissioner of revenue.  The equipment or 
device shall meet standards, rules, or criteria prescribed by 
the Minnesota pollution control agency, and must be installed or 
operated in accordance with a permit or order issued by that 
agency.  The Minnesota pollution control agency shall upon 
request of the commissioner furnish information or advice to the 
commissioner.  On determining that property qualifies for 
exemption, the commissioner shall issue an order exempting the 
property from taxation.  The equipment or device shall continue 
to be exempt from taxation as long as the permit issued by the 
Minnesota pollution control agency remains in effect. 
    (10) Wetlands.  For purposes of this subdivision, 
"wetlands" means (1):  (i) land described in section 103G.005, 
subdivision 18, or (2); (ii) land which is mostly under water, 
produces little if any income, and has no use except for 
wildlife or water conservation purposes, provided it is 
preserved in its natural condition and drainage of it would be 
legal, feasible, and economically practical for the production 
of livestock, dairy animals, poultry, fruit, vegetables, forage 
and grains, except wild rice; or (iii) land in a wetland 
preservation area under sections 1 to 5.  "Wetlands" shall under 
items (i) and (ii) include adjacent land which is not suitable 
for agricultural purposes due to the presence of the wetlands.  
"Wetlands" shall, but do not include woody swamps containing 
shrubs or trees, wet meadows, meandered water, streams, rivers, 
and floodplains or river bottoms.  Exemption of wetlands from 
taxation pursuant to this section shall not grant the public any 
additional or greater right of access to the wetlands or 
diminish any right of ownership to the wetlands. 
    (11) Native prairie.  The commissioner of the department of 
natural resources shall determine lands in the state which are 
native prairie and shall notify the county assessor of each 
county in which the lands are located.  Pasture land used for 
livestock grazing purposes shall not be considered native 
prairie for the purposes of this clause.  Upon receipt of an 
application for the exemption provided in this clause for lands 
for which the assessor has no determination from the 
commissioner of natural resources, the assessor shall refer the 
application to the commissioner of natural resources who shall 
determine within 30 days whether the land is native prairie and 
notify the county assessor of the decision.  Exemption of native 
prairie pursuant to this clause shall not grant the public any 
additional or greater right of access to the native prairie or 
diminish any right of ownership to it. 
       (12) Property used in a continuous program to provide 
emergency shelter for victims of domestic abuse, provided the 
organization that owns and sponsors the shelter is exempt from 
federal income taxation pursuant to section 501(c)(3) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1986, notwithstanding the fact that the sponsoring organization 
receives funding under section 8 of the United States Housing 
Act of 1937, as amended. 
     (13) If approved by the governing body of the municipality 
in which the property is located, property not exceeding one 
acre which is owned and operated by any senior citizen group or 
association of groups that in general limits membership to 
persons age 55 or older and is organized and operated 
exclusively for pleasure, recreation, and other nonprofit 
purposes, no part of the net earnings of which inures to the 
benefit of any private shareholders; provided the property is 
used primarily as a clubhouse, meeting facility, or recreational 
facility by the group or association and the property is not 
used for residential purposes on either a temporary or permanent 
basis. 
     (14) To the extent provided by section 295.44, real and 
personal property used or to be used primarily for the 
production of hydroelectric or hydromechanical power on a site 
owned by the state or a local governmental unit which is 
developed and operated pursuant to the provisions of section 
103G.535. 
     (15) If approved by the governing body of the municipality 
in which the property is located, and if construction is 
commenced after June 30, 1983:  
     (a) a "direct satellite broadcasting facility" operated by 
a corporation licensed by the federal communications commission 
to provide direct satellite broadcasting services using direct 
broadcast satellites operating in the 12-ghz. band; and 
     (b) a "fixed satellite regional or national program service 
facility" operated by a corporation licensed by the federal 
communications commission to provide fixed satellite-transmitted 
regularly scheduled broadcasting services using satellites 
operating in the 6-ghz. band. 
An exemption provided by clause (15) shall apply for a period 
not to exceed five years.  When the facility no longer qualifies 
for exemption, it shall be placed on the assessment rolls as 
provided in subdivision 4.  Before approving a tax exemption 
pursuant to this paragraph, the governing body of the 
municipality shall provide an opportunity to the members of the 
county board of commissioners of the county in which the 
facility is proposed to be located and the members of the school 
board of the school district in which the facility is proposed 
to be located to meet with the governing body.  The governing 
body shall present to the members of those boards its estimate 
of the fiscal impact of the proposed property tax exemption.  
The tax exemption shall not be approved by the governing body 
until the county board of commissioners has presented its 
written comment on the proposal to the governing body or 30 days 
has passed from the date of the transmittal by the governing 
body to the board of the information on the fiscal impact, 
whichever occurs first. 
     (16) Real and personal property owned and operated by a 
private, nonprofit corporation exempt from federal income 
taxation pursuant to United States Code, title 26, section 
501(c)(3), primarily used in the generation and distribution of 
hot water for heating buildings and structures.  
        (17) Notwithstanding section 273.19, state lands that are 
leased from the department of natural resources under section 
92.46. 
        (18) Electric power distribution lines and their 
attachments and appurtenances, that are used primarily for 
supplying electricity to farmers at retail.  
       (19) Transitional housing facilities.  "Transitional 
housing facility" means a facility that meets the following 
requirements.  (i) It provides temporary housing to parents and 
children who are receiving AFDC or parents of children who are 
temporarily in foster care.  (ii) It has the purpose of 
reuniting families and enabling parents to obtain 
self-sufficiency, advance their education, get job training, or 
become employed in jobs that provide a living wage.  (iii) It 
provides support services such as child care, work readiness 
training, and career development counseling; and a 
self-sufficiency program with periodic monitoring of each 
resident's progress in completing the program's goals.  (iv) It 
provides services to a resident of the facility for at least six 
months but no longer than three years, except residents enrolled 
in an educational or vocational institution or job training 
program.  These residents may receive services during the time 
they are enrolled but in no event longer than four years.  (v) 
It is sponsored by an organization that has received a grant 
under either section 256.7365 for the biennium ending June 30, 
1989, or section 462A.07, subdivision 15, for the biennium 
ending June 30, 1991, for the purposes of providing the services 
in items (i) to (iv).  (vi) It is sponsored by an organization 
that is exempt from federal income tax under section 501(c)(3) 
of the Internal Revenue Code of 1986, as amended through 
December 31, 1987.  This exemption applies notwithstanding the 
fact that the sponsoring organization receives financing by a 
direct federal loan or federally insured loan or a loan made by 
the Minnesota housing finance agency under the provisions of 
either Title II of the National Housing Act or the Minnesota 
housing finance agency law of 1971 or rules promulgated by the 
agency pursuant to it, and notwithstanding the fact that the 
sponsoring organization receives funding under Section 8 of the 
United States Housing Act of 1937, as amended. 
    Sec. 7.  [275.295] [WETLANDS EXEMPTION; REPLACEMENT OF REVENUE.] 
    Subdivision 1.  [CERTIFICATION.] The total amount of 
revenue lost as a result of the exemption provided in Minnesota 
Statutes, section 272.02, subdivision 1, paragraph (10), clause 
(3), must be certified by the county auditor to the commissioner 
of revenue and submitted to the commissioner as part of the 
abstract of tax lists to be filed with the commissioner under 
the provisions of Minnesota Statutes, section 275.29.  The 
amount of revenue lost as a result of the exemption must be 
computed each year by applying the current tax rates of the 
taxing jurisdictions in which the wetlands are located to the 
assessed valuation of the wetlands.  Payment to the county for 
lost revenue must not be less than the revenue that would have 
been received in taxes if the wetlands had an assessed value of 
$5 per acre.  The commissioner of revenue shall review the 
certification for accuracy and may make necessary changes or 
return the certification to the county auditor for corrections. 
    Subd. 2.  [PAYMENT.] Based on current year tax data 
reported in the abstracts of tax lists, the commissioner of 
revenue shall annually determine the taxing district 
distribution of the amounts certified under subdivision 1.  The 
commissioner shall pay to each taxing district, other than 
school districts, its total payment for the year in equal 
installments on or before July 15 and December 15 of each year. 
    Subd. 3.  [APPROPRIATION.] There is appropriated from the 
general fund to the commissioner of revenue the amount necessary 
to make the payments required in subdivision 2. 
     Sec. 8.  [EFFECTIVE DATE.] 
    Sections 6 and 7 are effective for taxes levied in 1992, 
payable in 1993, and thereafter. 

                                ARTICLE 5

              WETLAND ESTABLISHMENT AND RESTORATION PROGRAM
    Section 1.  [103F.901] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 1 to 5. 
    Subd. 2.  [BOARD.] "Board" means the board of water and 
soil resources. 
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of natural resources. 
    Subd. 4.  [COMPREHENSIVE LOCAL WATER PLAN.] "Comprehensive 
local water plan" has the meaning given in section 103B.3363, 
subdivision 3. 
    Subd. 5.  [LOCAL UNIT OF GOVERNMENT.] "Local unit of 
government" means a county board, joint county board, watershed 
management organization, or watershed district. 
    Subd. 6.  [WATERSHED DISTRICT.] "Watershed district" means 
a district established under chapter 103D. 
    Subd. 7.  [WATERSHED MANAGEMENT ORGANIZATION.] "Watershed 
management organization" has the meaning given in section 
103B.205, subdivision 13. 
    Subd. 8.  [WETLAND.] "Wetland" has the meaning given in 
article 6, section 6. 
    Sec. 2.  [103F.902] [LOCAL PLANNING AND APPROVAL.] 
    Subdivision 1.  [APPLICATION.] A willing landowner may 
apply, on forms provided by the board, to a local unit of 
government for the establishment or restoration of a wetland on 
property owned by the landowner in an area that is: 
    (1) designated by the board as a high priority wetland 
region; and 
    (2) identified as a high priority wetland area in the local 
unit of government's comprehensive local water plan. 
    Subd. 2.  [NOTICE AND PRELIMINARY HEARING.] (a) Within 30 
days after receiving an application, the local unit of 
government shall hold a public hearing.  At least ten days 
before the hearing, the local unit of government shall give 
notice of the hearing to the applicant and publish notice in an 
official newspaper of general circulation in the county. 
    (b) At the hearing, the local unit of government shall 
describe the application and hear comments from interested 
persons regarding the application and the planned establishment 
or restoration project. 
    Subd. 3.  [PRELIMINARY APPROVAL.] Within 30 days of the 
public hearing, the local unit of government must give 
preliminary approval or disapproval of the application. 
    Subd. 4.  [SURVEY REPORT.] After preliminary approval, the 
local unit of government shall direct and pay the costs of a 
soil and water conservation engineer to conduct a survey of the 
property where the wetland restoration or establishment project 
is proposed to be located.  The engineer must file a report, 
including a map of the proposed wetland, that describes the 
effects of the proposed wetland on: 
    (1) the hydrology in the area; 
    (2) property of persons other than the applicant; 
    (3) groundwater recharge; 
    (4) flooding; 
    (5) fish and wildlife habitat; 
    (6) water quality; and 
    (7) other characteristics as determined by the local unit 
of government. 
    Subd. 5.  [NOTICE AND FINAL HEARING.] Within 30 days of 
receiving the completed survey, the local unit of government 
shall hold a public hearing on the proposed project.  At least 
ten days before the hearing, the local unit of government shall 
notify the landowner and the commissioner and provide public 
notice of the hearing and the availability of the survey report 
in an official newspaper of general circulation in the county.  
The commissioner may provide comment on the proposed wetland. 
    Subd. 6.  [FINAL LOCAL APPROVAL.] Within 30 days of the 
public hearing, the local unit of government shall notify the 
applicant and the commissioner of the final approval or 
disapproval of the proposed wetland. 
    Sec. 3.  [103F.903] [WETLAND ESTABLISHMENT AND RESTORATION 
COST-SHARE PROGRAM.] 
    Subdivision 1.  [APPLICATION.] A local unit of government 
shall apply to the board to receive cost-share funding for a 
proposed wetland restoration project that receives final local 
approval under section 2.  The application must include a copy 
of the survey report and any comments received on the proposed 
wetland.  Within 30 days of receiving an application, the board 
shall notify the local unit of government on whether the 
application and survey report are complete. 
    Subd. 2.  [COST-SHARE.] The board may provide up to the 
lesser of $20,000 or 50 percent of the cost of a wetland 
establishment or restoration project, including engineering 
costs, establishment or restoration costs, and compensation 
costs. 
    Subd. 3.  [CONSERVATION EASEMENT.] In exchange for 
cost-share financing under subdivision 2, the board shall 
acquire a permanent conservation easement, as defined in section 
84C.01, paragraph (1).  The easement agreement must contain the 
conditions listed in section 103F.515, subdivision 4. 
    Subd. 4.  [PRIORITIES.] In reviewing requests from local 
units of government under this section, the board must give 
priority to applications based on the public value of the 
proposed wetland.  The public value of the wetland must include 
the value of the wetland for: 
    (1) water quality; 
    (2) flood protection; 
    (3) recreation including fish and wildlife habitat; 
    (4) groundwater recharge; and 
    (5) other public uses. 
    Sec. 4.  [103F.904] [WETLAND ESTABLISHMENT.] 
    Subdivision 1.  [ESTABLISHMENT ORDER.] After receiving 
approval of cost-share funding from the board, the local unit of 
government shall order the establishment or restoration of the 
wetland.  The local unit of government shall pay all costs of 
establishing or restoring the wetland including the compensation 
required under subdivision 2. 
    Subd. 2.  [COMPENSATION.] In exchange for the permanent 
conservation easement on an established or restored wetland, the 
local unit of government shall pay the applicant the amount 
required under section 103F.515, subdivision 6, for a permanent 
conservation easement. 
    Sec. 5.  [103F.905] [RULES.] 
    The board may adopt rules to implement sections 1 to 4. 

                               ARTICLE 6 

                    REGULATION OF WETLAND ACTIVITIES
    Section 1.  Minnesota Statutes 1990, section 103G.005, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [BOARD.] "Board" means the board of water and 
soil resources. 
    Sec. 2.  Minnesota Statutes 1990, section 103G.005, is 
amended by adding a subdivision to read: 
    Subd. 10a.  [LOCAL GOVERNMENT UNIT.] "Local government 
unit" means: 
    (1) outside of the seven-county metropolitan area, a city 
council or county board of commissioners; and 
    (2) in the seven-county metropolitan area, a city council, 
a town board under section 368.01, or a watershed management 
organization under section 103B.211. 
    Sec. 3.  Minnesota Statutes 1990, section 103G.005, 
subdivision 15, is amended to read: 
    Subd. 15.  [PUBLIC WATERS.] (a) "Public waters" means:  
    (1) waterbasins assigned a shoreland management 
classification by the commissioner under sections 103F.201 to 
103F.221, except wetlands less than 80 acres in size that are 
classified as natural environment lakes; 
    (2) waters of the state that have been finally determined 
to be public waters or navigable waters by a court of competent 
jurisdiction; 
    (3) meandered lakes, excluding lakes that have been legally 
drained; 
    (4) waterbasins previously designated by the commissioner 
for management for a specific purpose such as trout lakes and 
game lakes pursuant to applicable laws; 
    (5) waterbasins designated as scientific and natural areas 
under section 84.033; 
    (6) waterbasins located within and totally surrounded by 
publicly owned lands; 
    (7) waterbasins where the state of Minnesota or the federal 
government holds title to any of the beds or shores, unless the 
owner declares that the water is not necessary for the purposes 
of the public ownership; 
    (8) waterbasins where there is a publicly owned and 
controlled access that is intended to provide for public access 
to the waterbasin; 
    (9) natural and altered watercourses with a total drainage 
area greater than two square miles; 
    (10) natural and altered watercourses designated by the 
commissioner as trout streams; and 
    (11) public waters wetlands, unless the statute expressly 
states otherwise. 
    (b) Public waters are not determined exclusively by the 
proprietorship of the underlying, overlying, or surrounding land 
or by whether it is a body or stream of water that was navigable 
in fact or susceptible of being used as a highway for commerce 
at the time this state was admitted to the union.  
    Sec. 4.  Minnesota Statutes 1990, section 103G.005, is 
amended by adding a subdivision to read: 
    Subd. 17a.  [WATERSHED.] "Watershed" means the 81 major 
watershed units delineated by the map, "State of Minnesota 
Watershed Boundaries - 1979". 
    Sec. 5.  Minnesota Statutes 1990, section 103G.005, 
subdivision 18, is amended to read: 
    Subd. 18.  [PUBLIC WATERS WETLANDS.] "Public waters 
wetlands" means all types 3, 4, and 5 wetlands, as defined in 
United States Fish and Wildlife Service Circular No. 39 (1971 
edition), not included within the definition of public waters, 
that are ten or more acres in size in unincorporated areas or 
2-1/2 or more acres in incorporated areas.  
    Sec. 6.  Minnesota Statutes 1990, section 103G.005, is 
amended by adding a subdivision 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 or ground water 
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) Wetlands does not include public waters wetlands as 
defined in subdivision 18.  
    Sec. 7.  Minnesota Statutes 1990, section 103G.221, is 
amended to read: 
    103G.221 [DRAINAGE OF PUBLIC WATERS WETLANDS.] 
    Subdivision 1.  [DRAINAGE OF PUBLIC WATERS WETLANDS 
GENERALLY PROHIBITED WITHOUT REPLACEMENT.] Except as provided in 
subdivisions 2 and 3, public waters wetlands may not be drained, 
and a permit authorizing drainage of public waters wetlands may 
not be issued, unless the public waters wetlands to be drained 
are replaced by wetlands that will have equal or greater public 
value.  
    Subd. 2.  [DRAINAGE OF PUBLIC WATERS WETLANDS FOR 
CROPLAND.] (a) Public waters wetlands that are lawful, feasible, 
and practical to drain and if drained would provide high quality 
cropland and that is the projected land use, as determined by 
the commissioner, may be drained without a permit and without 
replacement of by wetlands of equal or greater public value if 
the commissioner does not choose, within 60 days of receiving an 
application for a permit to drain the public waters wetlands to: 
    (1) place the public waters wetlands in the state water 
bank program under section 103F.601; or 
    (2) acquire them in fee under section 97A.145.  
    (b) If the commissioner does not make the offer under 
paragraph (a), clause (1) or (2), to a person applying for a 
permit, the public waters wetlands may be drained without a 
permit.  
    Subd. 3.  [PERMIT TO DRAIN PUBLIC WATERS WETLANDS TEN YEARS 
AFTER PUBLIC WATERS DESIGNATION.] (a) The owner of property 
underneath public waters wetlands on privately owned property 
may apply to the commissioner for a permit to drain the public 
waters wetlands after ten years from their original designation 
as public waters.  After receiving the application, the 
commissioner shall review the status of the public waters 
wetlands and current conditions.  
    (b) If the commissioner finds that the status of the public 
waters wetlands and the current conditions make it likely that 
the economic or other benefits from agricultural use to the 
owner from drainage would exceed the public benefits of 
maintaining the public waters wetlands, the commissioner shall 
grant the application and issue a drainage permit.  
    (c) If the application is denied, the owner may not apply 
again for another ten years.  
    Sec. 8.  [103G.222] [REPLACEMENT OF WETLANDS.] 
    (a) After the effective date of the rules adopted under 
section 11 or article 2, section 4, whichever is later, wetlands 
must not be drained or filled, wholly or partially, unless 
replaced by restoring or creating wetland areas of at least 
equal public value under either a replacement plan approved as 
provided in section 11 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.  Mining reclamation plans 
shall apply the same principles and standards for replacing 
wetlands by restoration or creation of wetland areas that are 
applicable to mitigation plans approved as provided in section 
11. 
    (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; and 
    (5) compensating for the impact by replacing or providing 
substitute wetland resources or environments. 
    (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 a deed restriction is placed on the altered wetland 
prohibiting nonagricultural use for at least ten years.  
    (d) Restoration and replacement of wetlands must be 
accomplished in accordance with the ecology of the landscape 
area affected. 
    (e) Replacement shall be within the same watershed or 
county as the impacted wetlands, as based on the wetland 
evaluation in section 11, subdivision 2, except that counties or 
watersheds in which 80 percent or more of the presettlement 
wetland acreage is intact may accomplish replacement in counties 
or watersheds in which 50 percent or more of the presettlement 
wetland acreage has been filled, drained, or otherwise degraded. 
Wetlands impacted by public transportation projects may be 
replaced statewide, provided they are approved by the 
commissioner under an established wetland banking system, or 
under the rules for wetland banking as provided for under 
section 11. 
    (f) For a 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 located on agricultural land, 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. 
    Sec. 9.  [103G.223] [CALCAREOUS FENS.] 
    Calcareous fens, as identified by the commissioner, may not 
be filled, drained, or otherwise degraded, wholly or partially, 
by any activity, unless the commissioner, under an approved 
management plan, decides some alteration is necessary. 
    Sec. 10. [103G.2241] [EXEMPTIONS.] 
    Subdivision 1.  [EXEMPTIONS.] (a) Subject to the conditions 
in paragraph (b), a replacement plan for wetlands is not 
required for:  
    (1) activities in a wetland that was planted with annually 
seeded crops, was in a crop rotation seeding of pasture grasses 
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; 
    (2) activities in a wetland that is or has been enrolled in 
the federal conservation reserve program under United States 
Code, title 16, section 3831, that: 
    (i) was planted with annually seeded crops, was in a crop 
rotation seeding, or was required to be set aside to receive 
price support or payment under United States Code, title 7, 
sections 1421 to 1469, in six of the last ten years prior to 
being enrolled in the program; and 
    (ii) has not been restored with assistance from a public or 
private wetland restoration program. 
    (3) activities necessary to repair and maintain existing 
public or private drainage systems as long as wetlands that have 
been in existence for more than 20 years are not drained; 
    (4) activities in a wetland that has received a commenced 
drainage determination provided for by the federal Food Security 
Act of 1985, that was made to the county agricultural 
stabilization and conservation service office prior to September 
19, 1988, and a ruling and any subsequent appeals or reviews 
have determined that drainage of the wetland had been commenced 
prior to December 23, 1985; 
    (5) activities exempted from federal regulation under 
United States Code, title 33, section 1344(f); 
    (6) activities authorized under, and conducted in 
accordance with, an applicable general 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, except the nationwide permit in Code of Federal 
Regulations, title 33, section 330.5, paragraph (a), clause 
(14), limited to when a new road crosses a wetland, and all of 
clause (26); 
    (7) activities in a type 1 wetland on agricultural land, as 
defined in United States Fish and Wildlife Circular No. 39 (1971 
edition) except for bottomland hardwood type 1 wetlands; 
    (8) activities in a type 2 wetland that is two acres in 
size or less located on agricultural land; 
    (9) activities in a wetland restored for conservation 
purposes under a contract or easement providing the landowner 
with the right to drain the restored wetland; 
    (10) activities in a wetland created solely as a result of: 
    (i) beaver dam construction; 
    (ii) blockage of culverts through roadways maintained by a 
public or private entity; 
    (iii) actions by public entities that were taken for a 
purpose other than creating the wetland; or 
    (iv) any combination of (i) to (iii); 
    (11) placement, maintenance, repair, enhancement, or 
replacement of utility or utility-type service, including the 
transmission, distribution, or furnishing, at wholesale or 
retail, of natural or manufactured gas, electricity, telephone, 
or radio service or communications if: 
    (i) the impacts of the proposed project on the hydrologic 
and biological characteristics of the wetland have been avoided 
and minimized to the extent possible; and 
    (ii) the proposed project significantly modifies or alters 
less than one-half acre of wetlands; 
    (12) activities associated with routine maintenance of 
utility and pipeline rights-of-way, provided the activities do 
not result in additional intrusion into the wetland; 
    (13) alteration of a wetland associated with the operation, 
maintenance, or repair of an interstate pipeline; 
    (14) temporarily crossing or entering a wetland to perform 
silvicultural activities, including timber harvest as part of a 
forest management activity, so long as the activity limits the 
impact on the hydrologic and biologic characteristics of the 
wetland; the activities do not result in the construction of 
dikes, drainage ditches, tile lines, or buildings; and the 
timber harvesting and other silvicultural practices do not 
result in the drainage of the wetland or public waters; 
    (15) permanent access for forest roads across wetlands so 
long as the activity limits the impact on the hydrologic and 
biologic characteristics of the wetland; the construction 
activities do not result in the access becoming a dike, drainage 
ditch or tile line; with filling avoided wherever possible; and 
there is no drainage of the wetland or public waters; 
    (16) activities associated with routine maintenance of 
existing public highways, roads, streets, and bridges, provided 
the activities do not result in additional intrusion into the 
wetland and do not result in the draining or filling, wholly or 
partially, of a wetland; 
    (17) emergency repair and normal maintenance and repair of 
existing public works, provided the activity does not result in 
additional intrusion of the public works into the wetland and do 
not result in the draining or filling, wholly or partially, of a 
wetland; 
    (18) normal maintenance and minor repair of structures 
causing no additional intrusion of an existing structure into 
the wetland, and maintenance and repair of private crossings 
that do not result in the draining or filling, wholly or 
partially, of a wetland; 
    (19) duck blinds; 
    (20) aquaculture activities, except building or altering of 
docks and activities involving the draining or filling, wholly 
or partially, of a wetland; 
    (21) wild rice production activities, including necessary 
diking and other activities authorized under a permit issued by 
the United State Army Corps of Engineers under section 404 of 
the federal Clean Water Act, United States Code, title 33, 
section 1344; 
    (22) normal agricultural practices to control pests or 
weeds, defined by rule as either noxious or secondary weeds, in 
accordance with applicable requirements under state and federal 
law, including established best management practices; 
    (23) activities in a wetland that is on agricultural land 
annually enrolled in the federal Food, Agricultural, 
Conservation, and Trade Act of 1990, United States Code, title 
16, section 3821, subsection (a), clauses (1) to (3), as 
amended, and is subject to sections 1421 to 1424 of the federal 
act in effect on January 1, 1991, except that land enrolled in a 
federal farm program is eligible for easement participation for 
those acres not already compensated under a federal program; 
    (24) development projects and ditch improvement projects in 
the state that have received preliminary or final plat approval, 
or infrastructure that has been installed, or having local site 
plan approval, conditional use permits, or similar official 
approval by a governing body or government agency, within five 
years before the effective date of this article.  In the 
seven-county metropolitan area and in cities of the first and 
second class, plat approval must be preliminary as approved by 
the appropriate governing body. 
    (b) A person conducting an activity in a wetland under an 
exemption in paragraph (a) shall ensure that: 
    (1) appropriate erosion control measures are taken to 
prevent sedimentation of the water; 
    (2) the activity does not block fish passage in a 
watercourse; and 
    (3) the activity is conducted in compliance with all other 
applicable federal, state, and local requirements, including 
best management practices and water resource protection 
requirements established under chapter 103H. 
    Sec. 11.  [103G.2242] [WETLAND VALUE REPLACEMENT PLANS.] 
    Subdivision 1.  [RULES.] (a) By July 1, 1993, the board, in 
consultation with the commissioner, shall adopt rules governing 
the approval of wetland value replacement plans under this 
section.  These rules must address the criteria, procedure, 
timing, and location of acceptable replacement of wetland 
values; may address the state establishment and administration 
of a wetland banking program for public and private projects, 
which may include provisions allowing monetary payment to the 
wetland banking program for alteration of wetlands on 
agricultural land; the methodology to be used in identifying and 
evaluating wetland functions; the administrative, monitoring, 
and enforcement procedures to be used; 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 balance described in the report required by 
Laws 1990, chapter 587, and include the planting of trees or 
shrubs. 
    (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. 
    (c) If the local government unit fails to apply the rules, 
the government unit is subject to penalty as determined by the 
board.  
    Subd. 2.  [EVALUATION.] Questions concerning the public 
value, location, size, or type of a wetland shall be submitted 
to and determined by a technical evaluation panel after an 
on-site inspection.  The technical evaluation panel shall be 
composed of a technical professional employee of the board, a 
technical professional employee of the local soil and water 
conservation district or districts, and an engineer for the 
local government unit.  The panel shall use the "Federal Manual 
for Identifying and Delineating Jurisdictional Wetlands" 
(January 1989).  The panel shall provide the wetland 
determination to the local government unit that must approve a 
replacement plan under this section, 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. 
    Subd. 3.  [REPLACEMENT COMPLETION.] Replacement of wetland 
values must be completed prior to or concurrent with the actual 
draining or filling of a wetland, or an irrevocable bank letter 
of credit or other security acceptable to the local government 
unit must be given to the local government unit to guarantee the 
successful completion of the replacement.  
    Subd. 4.  [DECISION.] Upon receiving and considering all 
required data, the local government unit approving a replacement 
plan must act on all applications for plan approval within 60 
days. 
    Subd. 5.  [PROCESSING FEE.] The local government unit may 
charge a processing fee of up to $75.  
    Subd. 6.  [NOTICE OF APPLICATION.] Within ten days of 
receiving an application for approval of a replacement plan 
under this section, a copy of the application must be submitted 
to the board for publication in the Environmental Quality Board 
Monitor and separate copies mailed to individual members of the 
public who request a copy, the board of supervisors of the soil 
and water conservation district, the managers of the watershed 
district, the board of county commissioners, the commissioner of 
agriculture, and the mayors of the cities within the area 
watershed.  At the same time, the local government unit must 
give general notice to the public in a general circulation 
newspaper within the area affected. 
    Subd. 7.  [NOTICE OF DECISION.] At least 30 days prior to 
the effective date of the approval or denial of a replacement 
plan under this section, a copy of the approval or denial must 
be submitted for publication in the Environmental Quality Board 
Monitor and separate copies mailed to the applicant, the board, 
individual members of the public who request a copy, the board 
of supervisors of the soil and water conservation district, the 
managers of the watershed district, the board of county 
commissioners, the commissioner of agriculture, and the mayors 
of the cities within the area watershed. 
    Subd. 8.  [PUBLIC COMMENT PERIOD.] Before approval or 
denial of a replacement plan under this section, comments may be 
made by the public to the local government unit for a period of 
30 days. 
    Subd. 9.  [APPEAL.] Appeal of the decision may be obtained 
by mailing a notice of appeal to the board within 30 days after 
the postmarked date of the mailing specified in subdivision 7.  
If appeal is not sought within 30 days, the decision becomes 
final.  Appeal may be made by the wetland owner, by any of those 
to whom notice is required to be mailed under subdivision 7, or 
by 100 residents of the county in which a majority of the 
wetland is located.  All appeals must be heard by the committee 
for dispute resolution of the board, and a decision made within 
60 days of the appeal.  The decision must be served by mail on 
the parties to the appeal, and is not subject to the provisions 
of chapter 14.  The decision must be considered the decision of 
an agency in a contested case for purposes of judicial review 
under sections 14.63 to 14.69. 
    Subd. 10.  [LOCAL REQUIREMENTS.] The rules adopted under 
subdivision 1 shall allow for local government units to use 
their own notice and public comment procedures so long as the 
requirements of this section are satisfied. 
    Subd. 11.  [WETLAND HERITAGE ADVISORY COMMITTEE.] The 
governor shall establish a wetland heritage advisory committee 
consisting of a balanced diversity of interests including 
agriculture, environmental, and sporting organizations, land 
development organizations, local government organizations, and 
other agencies.  The committee must consist of nine members 
including the commissioner of agriculture, or a designee of the 
commissioner, the commissioner of natural resources, and seven 
members appointed by the governor.  The governor's appointees 
must include one county commissioner, one representative each 
from a statewide sporting organization, a statewide conservation 
organization, an agricultural commodity group, one faculty 
member of an institution of higher education with expertise in 
the natural sciences, and one member each from two statewide 
farm organizations.  The committee shall advise the board on the 
development of rules under this section and, after rule 
adoption, shall meet twice a year to review implementation of 
the program, to identify strengths and weaknesses, and to 
recommend changes to the rules and the law to improve the 
program. 
    Subd. 12.  [REPLACEMENT CREDITS.] No public or private 
wetland restoration, enhancement, or construction may be allowed 
for replacement unless specifically designated for replacement 
and paid for by the individual or organization performing the 
wetland restoration, enhancement, or construction, and is 
completed prior to any draining or filling of the wetland. 
    This subdivision does not apply to a wetland whose owner 
has paid back with interest the individual or organization 
restoring, enhancing, or constructing the wetland. 
    Subd. 13.  [REPLACEMENT WETLAND ELIGIBLE FOR RIM.] A 
wetland replaced under this section, in which the replacement is 
located on the wetland owner's land, is eligible for enrollment 
under section 103F.515 one year after the completion of 
replacement.  
    Sec. 12.  Minnesota Statutes 1990, section 103G.225, is 
amended to read: 
    103G.225 [STATE WETLANDS AND PUBLIC DRAINAGE SYSTEMS.] 
    If the state owns public waters wetlands on or adjacent to 
existing public drainage systems, the state shall consider the 
use of the public waters wetlands as part of the drainage 
system.  If the public waters wetlands interfere with or prevent 
the authorized functioning of the public drainage system, the 
state shall provide for necessary work to allow proper use and 
maintenance of the drainage system while still preserving 
the public waters wetlands.  
    Sec. 13.  Minnesota Statutes 1990, section 103G.231, is 
amended to read: 
    103G.231 [PROPERTY OWNER'S USE OF PUBLIC WATERS WETLANDS.] 
    Subdivision 1.  [AGRICULTURAL USE DURING DROUGHT.] A 
property owner may use the bed of public waters wetlands for 
pasture or cropland during periods of drought if: 
    (1) dikes, ditches, tile lines, or buildings are not 
constructed; and 
    (2) the agricultural use does not result in the drainage of 
the public waters wetlands.  
    Subd. 2.  [FILLING PUBLIC WATERS WETLANDS FOR IRRIGATION 
BOOMS.] A landowner may fill a public waters wetland to 
accommodate wheeled booms on irrigation devices if the fill does 
not impede normal drainage.  
    Sec. 14.  Minnesota Statutes 1990, section 103G.235, is 
amended to read: 
    103G.235 [RESTRICTIONS ON ACCESS TO PUBLIC WATERS 
WETLANDS.] 
    To protect the public health or safety, local units of 
government may by ordinance restrict public access to public 
waters wetlands from municipality, county, or township roads 
that abut public waters wetlands. 
    Sec. 15.  [103G.2364] [PROPERTY OWNER'S USE OF WETLANDS.] 
    (a) A property owner may use the bed of wetlands for 
pasture or cropland during periods of drought if:  
    (1) dikes, ditches, tile lines, or buildings are not 
constructed; and 
    (2) the agricultural use does not result in the drainage of 
the wetlands.  
    (b) A landowner may fill a wetland to accommodate wheeled 
booms on irrigation devices if the fill does not impede normal 
drainage.  
    Sec. 16.  [103G.2365] [CONTROL OF NOXIOUS WEEDS.] 
    Noxious weeds, as defined in section 18.171, subdivision 5, 
must be controlled on wetlands as required in section 18.191. 
    Sec. 17.  [103G.237] [COMPENSATION FOR LOSS OF PRIVATE 
USE.] 
    Subdivision 1.  [GENERAL.] A person whose replacement plan 
is not approved must be compensated as provided in this 
section.  The person may drain or fill the wetland without an 
approved replacement plan if the person: 
    (1) is eligible for compensation under subdivision 2; 
    (2) applies for compensation in accordance with subdivision 
3; and 
    (3) does not receive the compensation required in 
subdivision 4 within 90 days after the application for 
compensation is received by the board.  
    Subd. 2.  [ELIGIBILITY.] A person is eligible for 
compensation if: 
    (1) the person applies for replacement plan approval under 
section 11; 
    (2) the replacement plan is not approved or the plan 
conditions make the proposed use unworkable or not feasible; 
    (3) the person appeals the disapproval of the plan; 
    (4) the proposed use would otherwise be allowed under 
federal, state, and local laws, rules, ordinances, and other 
legal requirements; 
    (5) the person has suffered or will suffer damages; 
    (6) disallowing the proposed use will enhance the public 
value of the wetland; and 
    (7) the person applies to the board for compensation.  
    Subd. 3.  [APPLICATION.] An application for compensation 
must be made on forms prescribed by the board and include:  
    (1) the location and public value of the wetland where the 
use was proposed; 
    (2) a description and reason for the proposed wetland use; 
and 
    (3) the objection to the replacement plan, if any. 
    Subd. 4.  [COMPENSATION.] The board shall award 
compensation in an amount equal to 50 percent of the average 
equalized estimated market value of agricultural property in the 
township as established by the commissioner of revenue at the 
time application for compensation is made. 
    Sec. 18.  [103G.2372] [ENFORCEMENT.] 
    Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES.] The 
commissioner of natural resources, conservation officers, and 
peace officers shall enforce laws preserving and protecting 
wetlands.  The commissioner of natural resources, a conservation 
officer, or a peace officer may issue a cease and desist order 
to stop any illegal activity adversely affecting a wetland.  In 
the order, or by separate order, the commissioner, conservation 
officer, or peace officer may require restoration or replacement 
of the wetland, as determined by the local soil and water 
conservation district. 
    Subd. 2.  [MISDEMEANOR.] A violation of an order issued 
under subdivision 1 is a misdemeanor and must be prosecuted by 
the county attorney where the wetland is located or the illegal 
activity occurred. 
    Subd. 3.  [RESTITUTION.] The court may, as part of 
sentencing, require a person convicted under subdivision 2 to 
restore or replace the wetland, as determined by the local soil 
and water conservation district.  
    Sec. 19.  Minnesota Statutes 1990, section 645.44, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [PUBLIC WATERS.] "Public waters" means public 
waters as defined in section 103G.005, subdivision 15, and 
includes "public waters wetlands" as defined in section 
103G.005, subdivision 18. 
    Sec. 20.  [REGULATORY SIMPLIFICATION REPORT.] 
    The board of water and soil resources and the commissioner 
of the department of natural resources, in consultation with the 
appropriate federal agencies, shall jointly develop a plan to 
simplify and coordinate state and federal regulatory procedures 
related to wetland use and shall report on the plan to the 
legislature by January 1, 1992. 
    Sec. 21.  [AVAILABILITY OF NATIONAL WETLANDS INVENTORY 
MAPS.] 
    By February 1, 1993, the commissioner of natural resources 
shall file with each soil and water conservation district copies 
of the national wetlands inventory maps covering the district 
and shall publish notice of the availability of the maps in an 
official newspaper of general circulation in each county. 
    For purposes of this paragraph, "notice" means the 
following information in 8-point or larger type: 
 "NOTICE OF AVAILABILITY OF NATIONAL WETLANDS INVENTORY MAPS
    National wetlands inventory maps for (name of county) 
county are available from the Minnesota Department of Natural 
Resources.  The national wetlands inventory maps are for general 
informational use only, and should not be relied upon in 
determining the exact location or boundaries of wetlands.  
Persons wishing to obtain further information regarding the maps 
should contact (name, address, and telephone number of regional 
contact person at the department) or their local soil and water 
conservation district office.  WETLANDS ARE SUBJECT TO 
REGULATION BY THE STATE AND ACTIVITIES AFFECTING WETLANDS MAY BE 
RESTRICTED OR PROHIBITED UNDER RULES TO BE ADOPTED BY THE BOARD 
OF WATER AND SOIL RESOURCES AND THE DEPARTMENT OF NATURAL 
RESOURCES.  Persons wishing to participate in the rulemaking 
process should contact (name, address, and telephone number of 
contact person at the board) or (name, address, and telephone 
number of contact person at the department). 
    THE NATIONAL WETLANDS INVENTORY MAPS, MAPS PREPARED BY THE 
UNITED STATES SOIL CONSERVATION SERVICE, AND OTHER AVAILABLE 
MAPS MAY PROVIDE USEFUL INFORMATION, BUT PERSONS PLANNING TO 
CONDUCT ACTIVITIES THAT MAY AFFECT WETLANDS SHOULD FIRST CONSULT 
THEIR LOCAL SOIL AND WATER CONSERVATION DISTRICT OFFICE." 
    Sec. 22.  [LEGISLATIVE REVIEW OF RULES.] 
    Before adoption of the rules required in article 2, section 
4, and article 6, section 11, and no later than March 1, 1993, 
the proposed rules and any public comments on the proposed rules 
must be submitted to the agriculture and environment committees 
of the legislature.  The rules must not be adopted earlier than 
60 days after submittal to the legislature under this section. 

                                ARTICLE 7

                       INTERIM WETLAND ACTIVITIES
    Section 1.  [103G.2369] [INTERIM.] 
    Subdivision 1.  [DELINEATION.] The "Federal Manual for 
Identifying and Delineating Jurisdictional Wetlands" (January 
1989) must be used in identifying and delineating wetlands. 
    Subd. 2.  [PROHIBITED ACTIVITIES.] (a) Except as provided 
in subdivision 3, until July 1, 1993, a person may not drain, 
burn, or fill a wetland. 
    (b) Except as provided in subdivision 3, until July 1, 
1993, a state agency or local unit of government may not issue a 
permit for an activity prohibited in paragraph (a) or for an 
activity that would include an activity prohibited in paragraph 
(a). 
    Subd. 3.  [EXEMPTIONS.] The prohibitions in subdivision 2 
do not apply to:  
    (1) activities exempted under, and conducted in accordance 
with, article 6, section 10; 
    (2) development projects and drainage system improvement 
projects that have received preliminary or final plat approval 
or for which infrastructure has been installed, or that have 
received site plan approval or a conditional use permit, within 
five years before the effective date of this section; 
    (3) activities for which the local soil and water 
conservation district or other local permitting authority 
certifies that any loss of wetland area resulting from the 
activity will be replaced; and 
    (4) a person who is enrolled or participating in a program 
listed in United States Code, title 16, section 3821, subsection 
(a), clauses (1) to (3). 
    Subd. 4.  [CERTIFICATION FEE.] A soil and water 
conservation district or other local permitting authority may 
charge a fee of up to $75 for a certification under subdivision 
3, clause (3). 
    Subd. 5.  [ENFORCEMENT.] This section must be enforced as 
provided in article 6, section 18. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective January 1, 1992, and is repealed 
July 1, 1993. 

                                ARTICLE 8

                           PEATLAND PROTECTION
    Section 1.  [84.035] [PEATLAND PROTECTION.] 
    Subdivision 1.  [CITATION.] Sections 1 and 2 may be cited 
as the "Minnesota peatland protection act." 
    Subd. 2.  [FINDINGS.] The legislature finds that certain 
Minnesota peatlands possess unique scientific, aesthetic, 
vegetative, hydrologic, geologic, wildlife, wilderness, and 
educational values and represent the various peatland ecological 
types in the state.  The legislature finds that it is desirable 
and appropriate to protect and preserve these patterned 
peatlands as a peatland management system through establishment 
and designation of certain peatland core areas as scientific and 
natural areas. 
    Subd. 3.  [DEFINITIONS.] Unless language or context clearly 
indicates that a different meaning is intended, the following 
terms, for the purposes of sections 1 and 2, have the meanings 
given to them. 
    (a) "Winter road" means an access route which may be used 
by vehicles only when the substrate is frozen, except as 
provided in subdivision 5, paragraph (b), clause (3). 
    (b) "Corridors of disturbance" means rights of way which 
are in existence on the effective date of this act, such as 
ditches, ditch banks, transmission lines, pipelines, permanent 
roads, winter roads, and recreational trails.  The existence, on 
the effective date of this act, of a corridor of disturbance may 
be demonstrated by physical evidence, document recorded in the 
office of county recorder or other public official, aerial 
survey, or other evidence similar to the above. 
    (c) "State land" means land owned by the state of Minnesota 
and administered by the commissioner. 
    Subd. 4.  [DESIGNATION OF PEATLAND SCIENTIFIC AND NATURAL 
AREAS.] Within the peatland areas described in section 2, state 
lands are hereby established and designated as scientific and 
natural areas to be preserved and managed by the commissioner in 
accordance with subdivision 5 and section 86A.05, subdivision 5. 
    Subd. 5.  [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURAL 
AREAS.] Areas designated in subdivision 4 as peatland scientific 
and natural areas are subject to the following conditions: 
    (a) Except as provided in paragraph (b), all restrictions 
otherwise applicable to scientific and natural areas designated 
under section 86A.05, subdivision 5, apply to the surface use 
and to any use of the mineral estate which would significantly 
modify or alter the peatland water levels or flows, peatland 
water chemistry, plant or animal species or communities, or 
other natural features of the peatland scientific and natural 
areas, including, but not limited to, the following prohibitions:
     (1) construction of any new public drainage systems after 
the effective date of this act or improvement or repair to a 
public drainage system in existence on the effective date of 
this act, under authority of chapter 103E, or any other 
alteration of surface water or ground water levels or flows 
unless specifically permitted under paragraph (b), clause (5) or 
(6); 
    (2) removal of peat, sand, gravel, or other industrial 
minerals; 
    (3) exploratory boring or other exploration or removal of 
oil, natural gas, radioactive materials or metallic minerals 
which would significantly modify or alter the peatland water 
levels or flows, peatland water chemistry, plant or animal 
species or communities, or natural features of the peatland 
scientific and natural areas, except in the event of a national 
emergency declared by Congress; 
    (4) commercial timber harvesting; 
    (5) construction of new corridors of disturbance, of the 
kind defined in subdivision 3, after the effective date of this 
article; and 
    (6) ditching, draining, filling, or any other activities 
which modify or alter the peatland water levels or flows, 
peatland water chemistry, plant or animal species or 
communities, or other natural features of the peatland 
scientific and natural areas. 
     (b) The following activities are allowed: 
     (1) recreational activities, including hunting, fishing, 
trapping, cross-country skiing, snowshoeing, nature observation, 
or other recreational activities permitted in the management 
plan approved by the commissioner; 
    (2) scientific and educational work and research; 
    (3) maintenance of corridors of disturbance, including 
survey lines and preparation of winter roads, consistent with 
protection of the peatland ecosystem; 
    (4) use of corridors of disturbance unless limited by a 
management plan adopted by the commissioner under subdivision 6; 
    (5) improvements to a public drainage system in existence 
on the effective date of this act only when it is for the 
protection and maintenance of the ecological integrity of the 
peatland scientific and natural area and when included in a 
management plan adopted by the commissioner under subdivision 6; 
    (6) repairs to a public drainage system in existence on the 
effective date of this act which crosses a peatland scientific 
and natural area and is used for the purposes of providing a 
drainage outlet for lands outside of the peatland scientific and 
natural area, provided that there are no other feasible and 
prudent alternative means of providing the drainage outlet.  The 
commissioner shall cooperate with the ditch authority in the 
determination of any feasible and prudent alternatives.  No 
repairs which would significantly modify or alter the peatland 
water levels or flows, peatland water chemistry, plant or animal 
species or communities, or other natural features of the 
peatland scientific and natural areas shall be made unless 
approved by the commissioner; 
    (7) motorized uses that are engaged in, on corridors of 
disturbance, on or before the effective date of this act; 
     (8) control of forest insects, disease, and wildfires, as 
described in a management plan adopted by the commissioner under 
subdivision 6; and 
    (9) geological and geophysical surveys which would not 
significantly modify or alter the peatland water levels or 
flows, peatland water chemistry, plant or animal species or 
communities, or other natural features of the peatland 
scientific and natural areas. 
     Subd. 6.  [MANAGEMENT PLANS.] The commissioner shall 
develop a management plan for each peatland scientific and 
natural area designated under section 2 in a manner prescribed 
by section 86A.09. 
     Subd. 7.  [ESTABLISHING BASELINE ECOLOGICAL DATA.] The 
commissioner shall establish baseline data on the ecology and 
biological diversity of peatland scientific and natural areas 
and provide for ongoing, long-term ecological monitoring to 
determine whether changes are occurring in the peatland 
scientific and natural areas.  This research is intended to 
identify any changes occurring in peatland scientific and 
natural areas as a result of any permitted activities outside 
the peatland scientific and natural areas.  This baseline data 
may include, but is not limited to, the history of the peatlands 
and their geologic origins, plant and animal communities, 
hydrology, water chemistry, and contaminants introduced from 
remote sources of atmospheric deposition. 
    Subd. 8.  [DITCH ABANDONMENTS.] In order to eliminate 
repairs or improvements to any public drainage system that 
crosses a peatland scientific and natural area in those 
instances where the repair or improvement adversely affects an 
area, the commissioner may petition for the abandonment of parts 
of the public drainage system under section 106A.811.  If the 
public drainage system is necessary as a drainage outlet for 
lands outside of the peatland scientific and natural area, the 
commissioner will cooperate with the ditch authority in the 
development of feasible and prudent alternative means of 
providing a drainage outlet which avoids the crossing of and 
damage to the peatland scientific and natural area.  In so 
doing, the commissioner shall grant flowage easements to the 
ditch authority for disposal of the outlet water on other state 
lands.  The ditch authority shall approve the abandonment of 
parts of any public drainage system crossing a peatland 
scientific and natural area if the public drainage system 
crossing of those areas is not necessary as a drainage outlet 
for lands outside of the areas or if there are feasible and 
prudent alternative means of providing a drainage outlet without 
crossing such areas.  In any abandonment under this subdivision 
the commissioner may enter into an agreement with the ditch 
authority regarding apportionment of costs and, contingent upon 
appropriations of money for that purpose, may agree to pay a 
reasonable share of the cost of abandonment. 
    Subd. 9.  [COMPENSATION FOR TRUST FUND LANDS.] The 
commissioner shall acquire by exchange or eminent domain the 
surface interests, including peat, on trust fund lands contained 
in peatland scientific and natural areas established in 
subdivision 4. 
    Subd. 10.  [ACQUISITION OF PEATLAND SCIENTIFIC AND NATURAL 
AREAS.] The commissioner may acquire by purchase the surface 
interests, including peat, of lands within the boundaries of the 
peatland areas described in section 2, that are owned, or that 
hereafter become owned, by the state and administered by the 
local county board. 
    The commissioner shall designate any land acquired under 
this subdivision as peatland scientific and natural area and 
preserve and administer any land so acquired and designated in 
accordance with subdivision 5 and section 86A.05. 
    Sec. 2.  [84.036] [PEATLAND SCIENTIFIC AND NATURAL AREAS; 
DESIGNATION.] 
    The following scientific and natural areas are established 
and are composed of all of the core peatland areas identified on 
maps in the 1984 commissioner of natural resources report, 
"Recommendations for the Protection of Ecologically Significant 
Peatlands in Minnesota" and maps on file at the department of 
natural resources: 
    (1) Red Lake Scientific and Natural Area in Beltrami, 
Koochiching, and Lake of the Woods counties; 
    (2) Myrtle Lake Scientific and Natural Area in Koochiching 
county; 
    (3) Lost River Scientific and Natural Area in Koochiching 
county; 
    (4) North Black River Scientific and Natural Area in 
Koochiching county; 
    (5) Sand Lake Scientific and Natural Area in Lake county; 
     (6) Mulligan Lake Scientific and Natural Area in Lake of 
the Woods county; 
     (7) Lost Lake Scientific and Natural Area in St. Louis 
county; 
     (8) Pine Creek Scientific and Natural Area in Roseau 
county; 
    (9) Hole in the Bog Scientific and Natural Area in Cass 
county; 
    (10) Wawina Scientific and Natural Area in St. Louis 
county; 
    (11) Nett Lake Scientific and Natural Area in Koochiching 
county; 
    (12) East Rat Root River Scientific and Natural Area in 
Koochiching county; 
    (13) South Black River Scientific and Natural Area in 
Koochiching county; 
    (14) Winter Road Lake Scientific and Natural Area in 
Koochiching county; 
    (15) Sprague Creek Scientific and Natural Area in Roseau 
county; 
    (16) Luxemberg Scientific and Natural Area in Roseau 
county; 
    (17) West Rat Root River Scientific and Natural Area in 
Koochiching county; and 
    (18) Norris Camp Scientific and Natural Area in Lake of the 
Woods county. 
    Sec. 3.  Minnesota Statutes 1990, section 103G.231, is 
amended by adding a subdivision to read: 
    Subd. 3.  [PEAT MINING.] Peat mining, as defined in section 
93.461, is permitted subject to the mine permit and reclamation 
requirements of sections 93.44 to 93.51, and the rules adopted 
under those restrictions, except as provided for in sections 1 
and 2. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment. 

                               ARTICLE 9 

                          SECTION 404 PROGRAM 
    Section 1.  [103G.127] [PERMIT PROGRAM UNDER SECTION 404 OF 
THE FEDERAL CLEAN WATER ACT.] 
    Notwithstanding any other law to the contrary, the 
commissioner may adopt rules establishing a permit program for 
regulating the discharge of dredged and fill material into the 
waters of the state as necessary to obtain approval from the 
United States Environmental Protection Agency to administer the 
permit program under section 404 of the federal Clean Water Act, 
United States Code, title 33, section 1344.  The rules may not 
be more restrictive than the program under section 404, or state 
law, if it is more restrictive than the federal program. 
    Sec. 2.  Minnesota Statutes 1990, section 103G.141, is 
amended to read: 
    103G.141 [PENALTIES.] 
    Subdivision 1.  [MISDEMEANORS.] Except as provided in 
subdivision 2, a person is guilty of a misdemeanor who: 
    (1) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state without previously 
obtaining a permit from the commissioner, regardless of whether 
the commissioner would have granted a permit had an application 
been filed; 
    (2) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state in violation of or in 
excess of authority granted under a permit issued by the 
commissioner, regardless of whether an application had been 
filed for permission to perform the act involved or whether the 
act involved would have been permitted had a proper application 
been filed; 
    (3) undertakes or procures another to undertake an 
alteration in the course, current, or cross section of public 
waters or appropriates waters of the state after a permit to 
undertake the project has been denied by the commissioner; or 
    (4) violates a provision of this chapter.  
    Subd. 2.  [VIOLATION OF SECTION 404 PERMITS.] (a) Whenever 
the commissioner finds that a person is in violation of a 
condition or limitation set forth in a permit issued under the 
rules adopted by the commissioner under section 1, the 
commissioner shall issue an order requiring the person to comply 
with the condition or limitation, or the commissioner shall 
bring a civil action in accordance with paragraph (b). 
    (b) The commissioner may commence a civil action for 
appropriate relief in district court, including a permanent or 
temporary injunction, for a violation for which the commissioner 
is authorized to issue a compliance order under paragraph (a).  
The court may restrain the violation and require compliance. 
    (c) A person who violates a condition or limitation in a 
permit issued by the commissioner under section 1, and a person 
who violates an order issued by the commissioner under paragraph 
(a), is subject to a civil penalty not to exceed $25,000 per day 
for each violation.  In determining the amount of a civil 
penalty the court shall consider the seriousness of the 
violation or violations, the economic benefit, if any, resulting 
from the violation, any history of violations, any good faith 
efforts to comply with the applicable requirements, the economic 
impact of the penalty on the violator, and other matters justice 
may require. 
    Sec. 3.  [SECTION 404 PROGRAM SUBMISSION.] 
    Subdivision 1.  [DEFINITION.] For purposes of this section, 
"section 404 program" means the permit program under section 404 
of the federal Clean Water Act, United States Code, title 33, 
section 1344. 
    Subd. 2.  [INTENT.] The legislature intends that as 
expeditiously as possible the state obtain approval from the 
administrator of the United States Environmental Protection 
Agency to administer the section 404 program in this state. 
    Subd. 3.  [REQUIREMENTS.] (a) By February 1, 1993, the 
commissioner of natural resources shall: 
    (1) adopt rules under section 1 that provide adequate 
authority for administering the section 404 program; and 
    (2) after consulting with the attorney general, report to 
the environment and natural resources committees of the 
legislature on existing laws that are inconsistent with the 
authority necessary for administering the section 404 program. 
    (b) By March 1, 1993, the governor shall make the 
submission to the administrator of the United States 
Environmental Protection Agency required in United States Code, 
title 33, section 1344(g), to obtain authority to administer the 
section 404 program. 

                               ARTICLE 10

                              MISCELLANEOUS
    Section 1.  Minnesota Statutes 1990, section 84.085, is 
amended to read: 
    84.085 [ACCEPTANCE OF GIFTS.] 
    Subdivision 1.  [AUTHORITY.] (a) The commissioner of 
natural resources may accept for and on behalf of the state any 
gift, bequest, device devise, or grants of lands or interest in 
lands or personal property of any kind or of money tendered to 
the state for any purpose pertaining to the activities of the 
department or any of its divisions.  Any money so received is 
hereby appropriated and dedicated for the purpose for which it 
is granted.  Lands and interests in lands so received may be 
sold or exchanged as provided in chapter 94.  
    (b) The commissioner may accept for and on behalf of the 
permanent school fund a donation of lands, interest in lands, or 
improvements on lands.  A donation so received shall become 
state property, be classified as school trust land as defined in 
section 92.025, and be managed consistent with section 120.85. 
    Subd. 2.  [WETLANDS.] The commissioner of natural resources 
must accept a gift, bequest, devise, or grant of wetlands, as 
defined in article 6, section 6, or public waters wetlands, as 
defined in section 103G.005, subdivision 18, unless: 
    (1) the commissioner determines that the value of the 
wetland for water quality, floodwater retention, public 
recreation, wildlife habitat, or other public benefits is 
minimal; 
    (2) the wetland has been degraded by activities conducted 
without a required permit by the person offering the wetland and 
the person has not taken actions determined by the commissioner 
to be necessary to restore the wetland; 
    (3) the commissioner determines that the wetland has been 
contaminated by a hazardous substance as defined in section 
115B.02, subdivision 8, a pollutant or contaminant as defined in 
section 115B.02, subdivision 13, or petroleum as defined in 
section 115C.02, subdivision 10, and the contamination has not 
been remedied as required under chapter 115B or 115C; 
    (4) the wetland is subject to a lien or other encumbrance; 
or 
    (5) the commissioner, after reasonable effort, has been 
unable to obtain an access to the wetland. 
    Sec. 2.  Minnesota Statutes 1990, section 103E.701, is 
amended by adding a subdivision to read: 
    Subd. 6.  [WETLAND RESTORATION AND MITIGATION.] Repair of a 
drainage system may include the restoration or enhancement of 
wetlands; wetland replacement under section 103G.222; and the 
realignment of a drainage system to prevent drainage of a 
wetland.  
    Sec. 3.  Minnesota Statutes 1990, section 103F.515, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
conservation reserve program if the land meets the requirements 
of paragraphs (b) and (c).  
    (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 would be beneficial to 
resource protection; 
    (5) is land in a sensitive groundwater area; 
    (6) is cropland adjacent to public waters; 
    (7) is cropland or noncropland adjacent to restored 
wetlands to the extent of up to four acres of cropland or one 
acre of 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; or 
    (10) is land on a hillside used for pasture.  
    (c) Eligible land under paragraph (a) must: 
    (1) have been owned by the landowner on January 1, 1985, or 
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; 
     (2) be at least five acres in size, except for a windbreak, 
woodlot, or abandoned building site, or be a whole field as 
defined by the United States Agricultural Stabilization and 
Conservation Services; 
     (3) not be set aside, enrolled or diverted under another 
federal or state government program; and 
     (4) have been in agricultural crop production for at least 
two years during the period 1981 to 1985 except drained 
wetlands, woodlots, abandoned building sites, or land on a 
hillside used for pasture. 
     (d) The enrolled land of a landowner may not exceed 20 
percent of the average farm size in the county where the land is 
being enrolled according to the average farm size determined by 
the United States Department of Agriculture, Census of 
Agriculture.  
     (e) In selecting drained wetlands for enrollment in the 
program, the highest priority must be given to wetlands with a 
cropping history during the period 1976 to 1985. 
     (f) 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. 
    Sec. 4.  Minnesota Statutes 1990, section 103G.005, 
subdivision 13a, is amended to read: 
    Subd. 13a.  [ONCE-THROUGH SYSTEM.] "Once-through system" 
means a space heating, ventilating, air conditioning (HVAC), or 
refrigeration system used for any type of temperature or 
humidity control application, utilizing groundwater, that 
circulates through the system and is then discharged without 
recirculating the majority of the water in the system components 
or reusing it for another a higher priority purpose. 
    Sec. 5.  Minnesota Statutes 1990, section 103G.271, 
subdivision 6, is amended to read: 
    Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
described in paragraphs (b) to (e) (f), a water use permit 
processing fee must be prescribed by the commissioner in 
accordance with the following schedule of fees for each water 
use permit in force at any time during the year: 
    (1) 0.05 cents per 1,000 gallons for the first 50,000,000 
gallons per year; 
    (2) 0.10 cents per 1,000 gallons for amounts greater than 
50,000,000 gallons but less than 100,000,000 gallons per year; 
    (3) 0.15 cents per 1,000 gallons for amounts greater than 
100,000,000 gallons but less than 150,000,000 gallons per year; 
and 
    (4) 0.20 cents per 1,000 gallons for amounts greater than 
150,000,000 gallons but less than 200,000,000 gallons per year; 
    (5) 0.25 cents per 1,000 gallons for amounts greater than 
200,000,000 gallons but less than 250,000,000 gallons per year; 
    (6) 0.30 cents per 1,000 gallons for amounts greater than 
250,000,000 gallons but less than 300,000,000 gallons per year; 
    (7) 0.35 cents per 1,000 gallons for amounts greater than 
300,000,000 gallons but less than 350,000,000 gallons per year; 
    (8) 0.40 cents per 1,000 gallons for amounts greater than 
350,000,000 gallons but less than 400,000,000 gallons per year; 
and 
    (9) 0.45 cents per 1,000 gallons for amounts greater than 
400,000,000 gallons per year.  
    (b) For once-through cooling systems, a water use 
processing fee must be prescribed by the commissioner in 
accordance with the following schedule of fees for each water 
use permit in force at any time during the year: 
    (1) for nonprofit corporations and school districts: 
    (i) 5.0 cents per 1,000 gallons until December 31, 1991; 
    (ii) 10.0 cents per 1,000 gallons from January 1, 1992, 
until December 31, 1996; and 
    (iii) 15.0 cents per 1,000 gallons after January 1, 1997; 
and 
    (2) for all other users after January 1, 1990, 20 cents per 
1,000 gallons. 
    (c) The fee is payable based on the amount of water 
appropriated during the year and in no case may, except as 
provided in paragraph (f), the minimum fee be less than is $50.  
The commissioner shall notify all permittees of the fee changes 
authorized by this law by July 1, 1990.  The commissioner is 
authorized to refund 1989 water use report processing fees under 
this subdivision. 
    (d) For water use processing fees other than once-through 
cooling systems:  
    (1) the fee for a city of the first class may not exceed 
$175,000 per year; 
    (2) the fee for other entities for any permitted use may 
not exceed: 
    (i) $35,000 per year for an entity holding three or fewer 
permits; 
    (ii) $50,000 per year for an entity holding four or five 
permits; 
    (iii) $175,000 per year for an entity holding more than 
five permits; 
    (3) the fee for agricultural irrigation may not exceed $750 
per year.  
    (e) Failure to pay the fee is sufficient cause for revoking 
a permit.  A penalty of two percent per month calculated from 
the original due date must be imposed on the unpaid balance of 
fees remaining 30 days after the sending of a second notice of 
fees due.  A fee may not be imposed on an agency, as defined in 
section 16B.01, subdivision 2, or federal governmental agency 
holding a water appropriation permit. 
    (f) The minimum water use processing fee for a permit 
issued for irrigation of agricultural land is $10 for years in 
which: 
    (1) there is no appropriation of water under the permit; or 
    (2) the permit is suspended for more than seven consecutive 
days between May 1 and October 1. 
    (g) For once-through systems fees payable after July 1, 
1993, at least 50 percent of the fee deposited in the general 
fund shall be used for grants, loans, or other financial 
assistance as appropriated by the legislature to assist in 
financing retrofitting of permitted once-through systems until 
December 31, 1999.  The commissioner shall adopt rules for 
determining eligibility and criteria for the issuance of grants, 
loans, or other financial assistance for retrofitting according 
to chapter 14, by July 1, 1993. 
    (g) This subdivision applies to permits issued or effective 
on or after January 1, 1990. 
    Sec. 6.  [103G.2373] [ANNUAL WETLANDS REPORT.] 
    By January 1 of each year, the commissioner of natural 
resources and the board of water and soil resources shall 
jointly report to the committees of the legislature with 
jurisdiction over matters relating to agriculture, the 
environment, and natural resources on: 
    (1) the status of implementation of state laws and programs 
relating to wetlands; 
    (2) the quantity, quality, acreage, types, and public value 
of wetlands in the state; and 
    (3) changes in the items in clause (2). 
    Sec. 7.  Minnesota Statutes 1990, section 273.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERALLY.] Except as provided in 
subdivisions 6, 8, and 9, and 11 or section 273.17, subdivision 
1, all property shall be valued at its market value.  The market 
value as determined pursuant to this section shall be stated 
such that any amount under $100 is rounded up to $100 and any 
amount exceeding $100 shall be rounded to the nearest $100.  In 
estimating and determining such value, the assessor shall not 
adopt a lower or different standard of value because the same is 
to serve as a basis of taxation, nor shall the assessor adopt as 
a criterion of value the price for which such property would 
sell at a forced sale, or in the aggregate with all the property 
in the town or district; but the assessor shall value each 
article or description of property by itself, and at such sum or 
price as the assessor believes the same to be fairly worth in 
money.  The assessor shall take into account the effect on the 
market value of property of environmental factors in the 
vicinity of the property.  In assessing any tract or lot of real 
property, the value of the land, exclusive of structures and 
improvements, shall be determined, and also the value of all 
structures and improvements thereon, and the aggregate value of 
the property, including all structures and improvements, 
excluding the value of crops growing upon cultivated land.  In 
valuing real property upon which there is a mine or quarry, it 
shall be valued at such price as such property, including the 
mine or quarry, would sell for a fair, voluntary sale, for 
cash.  In valuing real property which is vacant, the fact that 
such property is platted shall not be taken into account.  An 
individual lot of such platted property shall not be assessed in 
excess of the valuation of the land as if it were unplatted 
until the lot is improved with a permanent improvement all or a 
portion of which is located upon the lot, or for a period of 
three years after final approval of said plat whichever is 
shorter.  When a lot is sold or construction begun, that lot or 
any single contiguous lot fronting on the same street shall be 
eligible for revaluation.  All property, or the use thereof, 
which is taxable under section 272.01, subdivision 2, or 273.19, 
shall be valued at the market value of such property and not at 
the value of a leasehold estate in such property, or at some 
lesser value than its market value. 
    Sec. 8.  Minnesota Statutes 1990, section 273.11, is 
amended by adding a subdivision to read: 
    Subd. 11.  [VALUATION OF RESTORED OR PRESERVED 
WETLAND.] Wetlands restored by the federal, state, or local 
government, or by a nonprofit organization, or preserved under 
the terms of a temporary or perpetual easement by the federal or 
state government, must be valued by assessors at their wetland 
value.  "Wetland value" in this subdivision means the market 
value of wetlands in any potential use in which the wetland 
character is not permanently altered.  Wetland value shall not 
reflect potential uses of the wetland that would violate the 
terms of any existing conservation easement, or any one-time 
payment received by the wetland owner under the terms of a state 
or federal conservation easement.  Wetland value shall reflect 
any potential income consistent with a property's wetland 
character, including but not limited to lease payments for 
hunting or other recreational uses.  The commissioner of revenue 
shall issue a bulletin advising assessors of the provisions of 
this section by October 1, 1991. 
    For purposes of this subdivision, "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 or ground water 
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. 
    Sec. 9.  Minnesota Statutes 1990, section 282.018, 
subdivision 2, is amended to read: 
    Subd. 2.  [MARGINAL LAND AND WETLANDS.] Nonforested 
marginal land and wetlands on land that is property of the state 
as a result of forfeiture to the state for nonpayment of taxes 
is withdrawn from sale as provided in section 103F.535 unless 
restricted by a conservation easement as provided in section 
103F.535: 
    (1) notice of the existence of the nonforested marginal 
land or wetlands, in a form prescribed by the board of water and 
soil resources, is provided to prospective purchasers; and 
    (2) the deed contains a restrictive covenant, in a form 
prescribed by the board of water and soil resources, that 
precludes enrollment of the land in a state-funded program 
providing compensation for conservation of marginal land or 
wetlands. 
    Sec. 10.  Minnesota Statutes 1990, section 446A.12, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BONDING AUTHORITY.] The authority may 
issue negotiable bonds in a principal amount that the authority 
determines necessary to provide sufficient funds for achieving 
its purposes, including the making of loans and purchase of 
securities, the payment of interest on bonds of the authority, 
the establishment of reserves to secure its bonds, the payment 
of fees to a third party providing credit enhancement, and the 
payment of all other expenditures of the authority incident to 
and necessary or convenient to carry out its corporate purposes 
and powers, but not including the making of grants.  Bonds of 
the authority may be issued as bonds or notes or in any other 
form authorized by law.  The principal amount of bonds issued 
and outstanding under this section at any time may not exceed 
$150,000,000 $250,000,000.  
    Sec. 11.  [STUDY OF FARMLAND VALUATION.] 
    (a) The commissioner of revenue shall appoint a five-member 
farmland assessment technical advisory board, consisting of 
technical experts from the schools of agriculture of the 
University of Minnesota and the state university system and from 
state and federal agricultural agencies, to advise in and 
provide technical information regarding the method of valuing 
farmland according to productivity factors as described in this 
section.  The department of revenue shall determine the 
following data on a per acre basis by soil productivity index, 
based on moving averages for the most recent five-year period 
for which statistics are available: 
    (1) gross income, estimated by using yields per acre as 
assigned to soil productivity indices, the crop mix for each 
soil productivity index as determined by the Minnesota extension 
service, and average prices received by farmers for principal 
crops as published by the Minnesota crop reporting service; 
    (2) production costs, other than land costs, provided by 
the Minnesota extension service; and 
    (3) net return to land, which is the difference between 
clauses (1) and (2).  
    (b) The department of revenue shall certify a proposed 
agricultural economic value per acre for each soil productivity 
index, determined by dividing the net return to land as 
calculated in paragraph (a), clause (3), by the moving average 
of the federal land bank farmland mortgage interest rate for the 
same five-year period used in calculating the net return to land.
    (c) If the crop equivalency rating is not available in a 
county, the department of revenue shall use rentals or yield 
records of the United States Department of Agriculture 
Agricultural Stabilization and Conservation Service in 
determining the net income.  The rentals or yield records must 
be capitalized in the same manner to determine the valuation of 
the tillable agricultural land.  The commissioner shall provide 
a report to the legislature on the results of the study by 
December 1, 1991, that includes a plan for implementation of 
this method of valuing farmland and an analysis of the impacts 
on assessments of implementing it. 
    Sec. 12.  [REPEALER.] 
    Minnesota Statutes 1990, section 103G.221, subdivisions 2 
and 3, are repealed. 

                               ARTICLE 11

                             APPROPRIATIONS
    Section 1.  [APPROPRIATIONS; INCREASED COMPLEMENT.] 
    Subdivision 1.  $12,000,000 is appropriated from the bond 
proceeds fund to be divided as follows: 
    (a) $5,000,000 is appropriated to the board of water and 
soil resources for wetland restoration under Minnesota Statutes, 
section 103F.515; and 
    (b) $7,000,000 is appropriated to the board of water and 
soil resources for acquisition of conservation easements on 
wetlands. 
    Subd. 2.  $1,900,000 in fiscal year 1992 and $1,100,000 in 
fiscal year 1993 is appropriated from the general fund to be 
divided as follows: 
    (a) Board of water and soil resources for the following 
purposes: 
    (1) $297,500 in fiscal year 1992 and $425,000 in fiscal 
year 1993 for implementation of this act.  The complement of the 
board is increased by 12 positions. 
    (2) $100,000 in fiscal year 1992 and $100,000 in fiscal 
year 1993 for grants to the Minnesota association of soil and 
water conservation districts for education and training of local 
government officials relating to the implementation of this 
act.  Not more than five percent of a grant made under this 
section may be used for administrative expenses. 
    (3) $1,100,000 for fiscal year 1992 for wetland restoration 
under Minnesota Statutes, section 103F.515. 
    (b) $402,500 in fiscal year 1992 and $575,000 in fiscal 
year 1993 to the commissioner of natural resources for 
implementation of this act.  The complement of the department of 
natural resources is increased by nine in fiscal year 1992 and 
by an additional five in fiscal year 1993. 
    (c) $77,000 in fiscal year 1992 and $77,000 in fiscal year 
1993 to the attorney general for costs incurred under this act. 
    (d) The appropriations under this subdivision are available 
in either year of the biennium. 
    Sec. 2.  [SALE OF BONDS.] 
    Subdivision 1.  (a) To provide the money appropriated from 
the bond proceeds fund in 1991 S.F. No. 1533, the commissioner 
of finance on request of the governor shall sell and issue bonds 
of the state in an amount up to $16,000,000 in the manner, upon 
the terms, and with the effect prescribed by Minnesota Statutes, 
sections 16A.631 to 16A.675, and by the Minnesota Constitution, 
article XI. 
    (b) To provide the money appropriated from the bond 
proceeds fund in this act, the commissioner of finance on 
request of the governor shall sell and issue bonds of the state 
in an amount up to $12,000,000 in the manner, upon the terms, 
and with the effect prescribed by Minnesota Statutes, sections 
16A.631 to 16A.675, and by the Minnesota Constitution, article 
XI. 
    Subd. 2.  [EXISTING BONDING AUTHORITY.] Existing funds 
previously appropriated from the bond proceeds fund for the 
waterbank program under Minnesota Statutes, section 105.392 are 
transferred and appropriated to the board of water and soil 
resources for easements under article 3, section 1. 
    Sec. 3.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1991. 
    Presented to the governor May 31, 1991 
    Signed by the governor June 4, 1991, 8:31 p.m.