1.1.................... moves to amend H.F. No. 1237, the second engrossment, as follows:
1.2Page 6, after line 18, insert:

1.3    "Sec. 16. Minnesota Statutes 2008, section 103B.3355, is amended to read:
1.6(a) The public values of wetlands must be determined based upon the functions of
1.7wetlands for:
1.8(1) water quality, including filtering of pollutants to surface and groundwater,
1.9utilization of nutrients that would otherwise pollute public waters, trapping of sediments,
1.10shoreline protection, and utilization of the wetland as a recharge area for groundwater;
1.11(2) floodwater and stormwater retention, including the potential for flooding in
1.12the watershed, the value of property subject to flooding, and the reduction in potential
1.13flooding by the wetland;
1.14(3) public recreation and education, including hunting and fishing areas, wildlife
1.15viewing areas, and nature areas;
1.16(4) commercial uses, including wild rice and cranberry growing and harvesting
1.17and aquaculture;
1.18(5) fish, wildlife, native plant habitats;
1.19(6) low-flow augmentation; and
1.20(7) carbon sequestration; and
1.21(8) other public uses.
1.22(b) The Board of Water and Soil Resources, in consultation with the commissioners
1.23of natural resources and agriculture and local government units, shall adopt rules
1.25(1) scientific methodologies for determining the functions of wetlands; and
1.26(2) criteria for determining the resulting public values of wetlands.
2.1(c) The methodologies and criteria established under this section or other
2.2methodologies and criteria that include the functions in paragraph (a) and are approved
2.3by the board, in consultation with the commissioners of natural resources and agriculture
2.4and local government units, must be used to determine the functions and resulting public
2.5values of wetlands in the state. The functions listed in paragraph (a) are not listed in
2.6order of priority.
2.7(d) Public value criteria established or approved by the board under this section do
2.8not apply in areas subject to local comprehensive wetland protection and management
2.9plans established under section 103G.2243.
2.10(e) The Board of Water and Soil Resources, in consultation with the commissioners
2.11of natural resources and agriculture and local government units, may identify regions of
2.12the state where preservation, enhancement, restoration, and establishment of wetlands
2.13would have high public value. The board, in consultation with the commissioners, may
2.14identify high priority wetland regions using available information relating to the factors
2.15listed in paragraph (a). The board shall notify local units of government with water
2.16planning authority of these high priority regions.
2.17EFFECTIVE DATE.This section is effective August 1, 2009, and applies to
2.18rulemaking that begins after that date."
2.19Page 6, after line 33, insert:

2.20    "Sec. 18. Minnesota Statutes 2008, section 103C.501, subdivision 2, is amended to
2.22    Subd. 2. Request by district board. (a) A district board requesting funds of the
2.23state board must submit an application in a form prescribed by the board containing:
2.24(1) a comprehensive plan;
2.25(2) an annual work plan; and
2.26(3) an application for cost-sharing funds.
2.27(b) The comprehensive and annual work plans must be completed as provided in
2.28section 103C.331, subdivision 11. After review of the district's comprehensive plan, the
2.29state board must approve the comprehensive plan with necessary amendments or reject
2.30the plan.

2.31    Sec. 19. Minnesota Statutes 2008, section 103C.501, subdivision 4, is amended to read:
2.32    Subd. 4. Cost-sharing funds. (a) The state board shall allocate at least 70 percent
2.33of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality
2.34problems or water quantity problems due to altered hydrology. The areas must be
2.35selected based on the statewide priorities established by the state board. The allocated
3.1funds must be used for conservation practices for high priority problems identified in the
3.2comprehensive and annual work plans of the districts.
3.3(b) The remaining cost-sharing funds may be allocated to districts as follows:
3.4(1) for technical and administrative assistance, not more than 20 percent of the
3.5funds; and
3.6(2) for conservation practices for lower priority erosion, sedimentation, or water
3.7quality problems.

3.8    Sec. 20. Minnesota Statutes 2008, section 103C.501, subdivision 5, is amended to read:
3.9    Subd. 5. Contracts by districts. (a) A district board may contract on a cost-share
3.10basis to furnish financial aid to a land occupier or to a state agency for permanent systems
3.11for erosion or sedimentation control or water quality improvement or water quantity
3.12improvements that are consistent with the district's comprehensive and annual work plans.
3.13(b) The duration of the contract must, at a minimum, be the time required to
3.14complete the planned systems. A contract must specify that the land occupier is liable for
3.15monetary damages and penalties in an amount up to 150 percent of the financial assistance
3.16received from the district, for failure to complete the systems or practices in a timely
3.17manner or maintain the systems or practices as specified in the contract.
3.18(c) A contract may provide for cooperation or funding with federal agencies. A land
3.19occupier or state agency may provide the cost-sharing portion of the contract through
3.20services in kind.
3.21(d) The state board or the district board may not furnish any financial aid for
3.22practices designed only to increase land productivity.
3.23(e) When a district board determines that long-term maintenance of a system or
3.24practice is desirable, the board may require that maintenance be made a covenant upon
3.25the land for the effective life of the practice. A covenant under this subdivision shall be
3.26construed in the same manner as a conservation restriction under section 84.65.

3.27    Sec. 21. Minnesota Statutes 2008, section 103C.501, subdivision 6, is amended to read:
3.28    Subd. 6. Policies and rules. (a) The state board may adopt rules and shall adopt
3.29rules policies prescribing:
3.30(1) procedures and criteria for allocating funds for cost-sharing contracts;
3.31(2) standards and guidelines for cost-sharing contracts;
3.32(3) the scope and content of district comprehensive plans, plan amendments, and
3.33annual work plans;
4.1(4) standards and methods necessary to plan and implement a priority cost-sharing
4.2program, including guidelines to identify high priority erosion, sedimentation, and water
4.3quality problems and water quantity problems due to altered hydrology;
4.4(5) the share of the cost of conservation practices to be paid from cost-sharing
4.5funds; and
4.6(6) requirements for districts to document their efforts to identify and contact land
4.7occupiers with high priority erosion problems.
4.8(b) The rules may provide that cost-sharing may be used for farmstead windbreaks
4.9and shelterbelts for the purposes of energy conservation and snow protection."
4.10Page 8, line 23, after the second comma insert "wellhead protection area,"
4.11Page 8, line 31, after the second comma insert "wellhead protection area,"
4.12Page 8, after line 34, insert:
4.13"(d) Land is eligible if the land is a wellhead protection area as defined under
4.14section 103I.005, subdivision 24, and has a wellhead protection plan approved by the
4.15commissioner of health."
4.16Page 8, line 35, delete "(d)" and reinstate "(e)"
4.17Page 9, after line 20, insert:
4.18"(d) Notwithstanding paragraph (a), the board must permit the harvest of native
4.19grasses for use in seed production or bioenergy on wellhead protection lands eligible
4.20under subdivision 2, paragraph (d)."
4.21Page 14, delete section 34, and insert:

4.22    "Sec. 39. REPEALER.
4.23(a) Minnesota Statutes 2008, sections 85.0505, subdivision 2; 103B.101, subdivision
4.2411; 103F.511, subdivision 4; and 103F.521, subdivision 2, are repealed.
4.25(b) Minnesota Rules, parts 8400.3130; 8400.3160; 8400.3200; 8400.3230;
4.268400.3330; 8400.3360; 8400.3390; 8400.3500; 8400.3530, subparts 1, 2, and 2a; and
4.278400.3560, are repealed."
4.28Renumber the sections in sequence and correct the internal references
4.29Amend the title accordingly