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Office of the Revisor of Statutes

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

                            CHAPTER 146-H.F.No. 1828 
                  An act relating to water; modifying provisions 
                  relating to wetland classification and replacement; 
                  modifying provisions relating to consumptive use of 
                  water; amending Minnesota Statutes 2000, sections 
                  103F.516, subdivisions 1, 2, 3; 103F.612, by adding a 
                  subdivision; 103G.201; 103G.2242, subdivisions 9, 12; 
                  103G.2372, subdivision 1; 103G.245, subdivision 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 103F.516, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EASEMENTS.] Upon application by a 
        landowner, the board may acquire permanent easements and may pay 
        for the cost of related capital improvement projects to preserve 
        or restore wetlands on land containing type 1, 2, 3, 4, 5, or 6 
        wetlands, as defined in United States Fish and Wildlife Service 
        Circular No. 39 (1971 edition), public waters wetlands, or 
        public waters. 
           Sec. 2.  Minnesota Statutes 2000, section 103F.516, 
        subdivision 2, is amended to read: 
           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 wetlands, public waters 
        wetlands, or public waters included.  
           (c) The easement must require that the landowner control 
        noxious weeds in accordance with sections 18.77 to 18.88.  
           (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. 
           Sec. 3.  Minnesota Statutes 2000, section 103F.516, 
        subdivision 3, is amended to read: 
           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 landowner, 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, public waters wetlands, or public waters 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, public waters wetlands, or public waters 
        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; or 
           (3) for wetlands, public waters wetlands, or public waters 
        connected to a public or private drainage system, an amount 
        determined by the board based on the fair market value of the 
        land if drainage infrastructure were restored. 
           (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. 
           Sec. 4.  Minnesota Statutes 2000, section 103F.612, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [AUTHORITY OF WATERSHED MANAGEMENT ORGANIZATION.] 
        A watershed management organization with an approved watershed 
        management plan under section 103B.231 has the same authority as 
        a county to receive and act on applications under sections 
        103F.612 to 103F.616. 
           Sec. 5.  Minnesota Statutes 2000, section 103G.201, is 
        amended to read: 
           103G.201 [PUBLIC WATERS INVENTORY.] 
           (a) The commissioner shall prepare a public waters 
        inventory map of each county that shows the waters of this state 
        that are designated as public waters under the public waters 
        inventory and classification procedures prescribed under Laws 
        1979, chapter 199.  The public waters inventory map for each 
        county must be filed with the auditor of the county.  
           (b) The commissioner is authorized to revise the list of 
        public waters established under Laws 1979, chapter 199, to 
        reclassify those types 3, 4, and 5 wetlands previously 
        identified as public waters wetlands under Laws 1979, chapter 
        199, as public waters or as wetlands under section 103G.005, 
        subdivision 19.  The commissioner may only reclassify public 
        waters wetlands as public waters if: 
           (1) they are assigned a shoreland management classification 
        by the commissioner under sections 103F.201 to 103F.22; or 
           (2) they are classified as lacustrine wetlands or deepwater 
        habitats according to Classification of Wetlands and Deepwater 
        Habitats of the United States (Cowardin, et al., 1979 edition); 
        or 
           (3) the state or federal government has become titleholder 
        to any of the beds or shores of the public waters wetlands, 
        subsequent to the preparation of the public waters inventory map 
        filed with the auditor of the county, pursuant to paragraph (a), 
        and the responsible state or federal agency declares that the 
        water is necessary for the purposes of the public ownership. 
           (c) The commissioner must provide notice of the 
        reclassification to the local government unit, the county board, 
        the watershed district, if one exists for the area, and the soil 
        and water conservation district.  Within 60 days of receiving 
        notice from the commissioner, a party required to receive the 
        notice may provide a resolution stating objections to the 
        reclassification.  If the commissioner receives an objection 
        from a party required to receive the notice, the 
        reclassification is not effective.  If the commissioner does not 
        receive an objection from a party required to receive the 
        notice, the reclassification of a wetland under paragraph (b) is 
        effective 60 days after the notice is received by all of the 
        parties. 
           (d) The commissioner shall give priority to the 
        reclassification of public waters wetlands that are or have the 
        potential to be affected by public works projects. 
           Sec. 6.  Minnesota Statutes 2000, section 103G.2242, 
        subdivision 9, is amended to read: 
           Subd. 9.  [APPEAL.] (a) Appeal of a replacement plan, 
        exemption, wetland banking, wetland boundary or type 
        determination, or no-loss decision may be obtained by mailing a 
        petition and payment of a filing fee of $200, which shall be 
        retained by the board to defray administrative costs, to the 
        board within 15 30 days after the postmarked date of the mailing 
        specified in subdivision 7.  If appeal is not sought within 15 
        30 days, the decision becomes final.  The local government unit 
        may require the petitioner to post a letter of credit, cashier's 
        check, or cash in an amount not to exceed $500.  If the petition 
        for hearing is accepted, the amount posted must be returned to 
        the petitioner.  Appeal may be made by: 
           (1) the wetland owner; 
           (2) any of those to whom notice is required to be mailed 
        under subdivision 7; or 
           (3) 100 residents of the county in which a majority of the 
        wetland is located.  
           (b) Within 30 days after receiving a petition, the board 
        shall decide whether to grant the petition and hear the appeal.  
        The board shall grant the petition unless the board finds that: 
           (1) the appeal is meritless, trivial, or brought solely for 
        the purposes of delay; 
           (2) the petitioner has not exhausted all local 
        administrative remedies; 
           (3) expanded technical review is needed; 
           (4) the local government unit's record is not adequate; or 
           (5) the petitioner has not posted a letter of credit, 
        cashier's check, or cash if required by the local government 
        unit.  
           (c) In determining whether to grant the appeal, the board 
        shall also consider the size of the wetland, other factors in 
        controversy, any patterns of similar acts by the local 
        government unit or petitioner, and the consequences of the delay 
        resulting from the appeal.  
           (d) All appeals must be heard by the committee for dispute 
        resolution of the board, and a decision made within 60 days of 
        the filing the local government unit's record and the written 
        briefs submitted for 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.  A decision whether to grant a 
        petition for appeal and a decision on the merits of an appeal 
        must be considered the decision of an agency in a contested case 
        for purposes of judicial review under sections 14.63 to 14.69. 
           Sec. 7.  Minnesota Statutes 2000, section 103G.2242, 
        subdivision 12, is amended to read: 
           Subd. 12.  [REPLACEMENT CREDITS.] (a) 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. 
           (b) Paragraph (a) does not apply to a wetland whose owner 
        has paid back with interest the individual or organization 
        restoring, enhancing, or constructing the wetland. 
           (c) Notwithstanding section 103G.222, subdivision 1, 
        paragraph (i), the following actions, and others established in 
        rule, that are consistent with criteria in rules adopted by the 
        board in conjunction with the commissioners of natural resources 
        and agriculture, are eligible for replacement credit as 
        determined by the local government unit, including enrollment in 
        a statewide wetlands bank: 
           (1) reestablishment of permanent native, noninvasive 
        vegetative cover on a wetland on agricultural land 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 supports 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.  Replacement credit may not 
        exceed 50 percent of the total wetland area vegetatively 
        restored in a land retirement program during the past ten years; 
           (2) buffer areas of permanent native, noninvasive 
        vegetative cover established or preserved on upland adjacent to 
        replacement wetlands, provided that the upland buffer must be 
        established at the time of wetland replacement and replacement 
        credit for the buffer may not exceed 75 percent of the 
        replacement wetland area and may only be used for replacement 
        above a 1:1 ratio; 
           (3) wetlands restored for conservation purposes under 
        terminated easements or contracts, provided that up to 75 
        percent of the restored wetland area is eligible for replacement 
        credit and adjacent upland buffer areas reestablished to 
        permanent vegetative cover are eligible for replacement credit 
        above a 1:1 ratio in an amount not to exceed 25 percent of the 
        restored wetland area; and 
           (4) water quality treatment ponds constructed to pretreat 
        storm water runoff prior to discharge to wetlands, public 
        waters, or other water bodies, provided that the water quality 
        treatment ponds must be associated with an ongoing or proposed 
        project that will impact a wetland and replacement credit for 
        the treatment ponds may not exceed 75 percent of the treatment 
        pond area and may only be used for replacement above a 1:1 ratio 
        is based on the replacement of wetland functions and on an 
        approved stormwater management plan for the local government.  
           (d) Notwithstanding section 103G.222, subdivision 1, 
        paragraphs (e) and (f), the board may establish by rule 
        different replacement ratios for restoration projects with 
        exceptional natural resource value. 
           Sec. 8.  Minnesota Statutes 2000, section 103G.2372, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES.] The 
        commissioner of natural resources, conservation officers, and 
        peace officers shall enforce laws preserving and protecting 
        wetlands and public waters.  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 or public waters.  In the order, or by 
        separate order, the commissioner, conservation officer, or peace 
        officer may require restoration or replacement of the wetland or 
        public waters, as determined by the local soil and water 
        conservation district for wetlands and the commissioner of 
        natural resources for public waters.  Restoration or replacement 
        orders may be recorded or filed in the office of the county 
        recorder or registrar of titles, as appropriate, in the county 
        where the real property is located by the commissioner of 
        natural resources, conservation officers, or peace officers as a 
        deed restriction on the property that runs with the land and is 
        binding on the owners, successors, and assigns until the 
        conditions of the order are met or the order is rescinded.  
        Notwithstanding section 386.77, the agency shall pay the 
        applicable filing fee for any document filed under this section. 
           Sec. 9.  Minnesota Statutes 2000, section 103G.245, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DELEGATION OF PERMIT AUTHORITY TO LOCAL UNITS OF 
        GOVERNMENT.] (a) The commissioner may delegate public waters 
        work permit authority to the appropriate county or municipality 
        or to watershed districts or watershed management organizations 
        that have elected to assert local authority over protected 
        waters.  The public waters work permit authority must be 
        delegated under guidelines of the commissioner and the 
        delegation must be done by agreement with the involved county, 
        municipality, watershed district, or water management 
        organization and in compliance with section 103G.315. 
           (b) For projects affecting public waters wetlands and for 
        wetland areas of public waters affected by a public 
        transportation project as determined by the commissioner, the 
        commissioner may waive the requirement for a public waters work 
        permit if the local government unit makes a replacement, 
        no-loss, or exemption determination in compliance with sections 
        103A.201, 103B.3355, and 103G.222 to 103G.2373, and rules 
        adopted pursuant to these same sections. 
           (c) For projects affecting both public waters and wetlands, 
        the local government unit may, by written agreement with the 
        commissioner, waive the requirement for a replacement plan, 
        no-loss, or exemption determination if a public waters work 
        permit is required and the commissioner includes the provisions 
        of sections 103A.201, 103B.3355, and 103G.222 to 103G.2373, and 
        rules adopted pursuant to these same sections in the public 
        waters work permit. 
           Sec. 10.  [BIELOH POND WETLAND RESTORATION.] 
           The department of natural resources, working with the city 
        of Walker, shall restore the Bieloh pond. 
           Presented to the governor May 17, 2001 
           Signed by the governor May 21, 2001, 10:36 a.m.