Senate Bill No. 688

(By Senator Unger)

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[Introduced February 20, 2006; referred to the Committee

on Natural Resources ; and then to the Committee on Agriculture.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §8A-13-1, §8A-13-2, §8A-13-3, §8A-13-4, §8A-13-5, §8A-13-6, §8A-13-7, §8A-13-8, §8A-13-9, §8A-13-10, §8A-13-11, §8A-13-12, §8A-13-13, §8A-13-14, §8A-13-15, §8A-13-16, §8A-13-17, §8A-13-18 and §8A-13-19, all relating to voluntary wetland protection programs; providing legislative findings and purpose; providing for county wetland protection programs while authorizing wetland protection boards; authorizing county commissions to approve purchases of wetland easements; providing for required content of wetland protection programs; providing for wetland protection boards and the boards' powers and duties; establishing the West Virginia Wetland Protection Authority and prescribing its powers and duties; defining certain terms; setting forth methods of wetland protection; authorizing owners of wetlands to offer conservation and preservation easements; providing for the valuation of conservation and preservation easements; providing criteria to be used by county wetland protection boards and the authority for acquiring easements; prescribing various means for funding of wetland protection programs; and authorizing the Commissioner of Natural Resources to propose rules.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §8A-13-1, §8A-13-2, §8A-13-3, §8A-13-4, §8A-13-5, §8A-13-6, §8A-13-7, §8A-13-8, §8A-13-9, §8A-13-10, §8A-13-11, §8A-13-12, §8A-13-13, §8A-13-14, §8A-13-15, §8A-13-16, §8A-13-17, §8A-13-18 and §8A-13-19, all
to read as follows:
ARTICLE 13. VOLUNTARY WETLAND PROTECTION PROGRAMS.
§8A-13-1. Legislative findings and purpose.
(a) The Legislature hereby finds and declares that the wetlands of this state are a unique and essential component of the natural "life support" environmental components to which all citizens of this state have a vested interest in keeping secure and pollution free. Further, a need exists to nurture and maintain those wet wetland areas of the state which are in danger of irreversible loss or environmental calamity.
(b) It is the intent of the Legislature to provide persons and other entities an opportunity to voluntarily protect wetlands in order to:
(1) Assist in sustaining the ecological balance of the natural environment;
(2) Retain and preserve within the state wetlands in a natural state for recreational and commercial uses for the citizens of the state;
(3) Control the urban expansion which is endangering the wetlands of the state;
(4) Curb the spread of urban blight and deterioration which threatens the natural ecological balance of natural wetlands;
(5) Protect wetlands as open-space wetlands;
(6) Enhance tourism; and
(7) Protect worthwhile community values, institutions and landscapes which are inseparably associated with natural wetlands existing within the state.
(c) Further, it is the intent of the Legislature to establish a West Virginia wetland authority, hereinafter "authority", to assist persons, other entities and counties to obtain funding from any source available to accomplish the purposes of the voluntary wetland protection programs.
§8A-13-2. County wetland protection programs and wetland protection boards authorized; authority of county commission to approve purchase of wetland easements; expense reimbursement of actual expenses for the board members.

(a) The county commission of each county may adopt and implement a wetland protection program within the county. The county commission of each county which decides to adopt and implement a wetland protection program shall appoint a wetland protection board. The wetland protection board shall administer on behalf of the county commission all matters concerning wetland protection. The county commission has final approval authority for any and all purchases of easements for the wetland protection program by the board.
(b) The wetland protection board shall adopt bylaws prescribing the board's officers, meeting dates, record-keeping procedures, meeting attendance requirements and other internal operational procedures. The member of the wetland protection board who is a county commissioner shall serve as temporary chairman of the board until the board's bylaws are adopted and until the board's officers are selected as prescribed by those bylaws. The wetland protection board shall prepare a document proposing a wetland protection program which is consistent with the Legislature's intent.
(c) Each member of the board shall receive expense reimbursement for actual expenses incurred while engaged in the discharge of official duties, the actual expenses not to exceed the amount paid to members of the Legislature.
§8A-13-3. Content and requirements of wetland protection programs.

(a) An adopted wetland protection program shall include wetlands existing in each county as designated by each county wetland protection board in this state.
(b) An adopted wetland protection program shall meet the following minimum requirements:
(1) The program shall be developed by the county wetland protection board and approved by the county commission. The county wetland protection board, in consultation with the local conservation district, shall administer the wetland protection program;
(2) The board shall establish uniform standards and guidelines for the eligibility of areas as designated wetlands for the program. The standards and guidelines shall take into consideration the location of the wetland in relation to other wetlands within the county; impending threat of conversion of the property to nonwetland usage or usage contrary to the maintenance and preservation of sound ecological and environmental conditions; public and private ownership of wetlands and existing deed covenants regarding the wetlands; and restrictions with respect to the wetlands; and
(3) The guidelines established by the board shall outline the various methods of wetland protection which are available to prospective participating property owners and the procedures to be followed in applying for program consideration.
§8A-13-4. Wetland protection boards -- Appointment, composition, terms.

(a) Composition. -- A wetland protection board shall be composed of seven members, each serving without compensation. Membership on the wetland protection board shall consist of the following: One county commissioner; the executive director of the county development authority; one marine biologist; one who is a county resident and a member of a conservation district; the mayor or city manager of a municipality located in the county; and two county residents who are not members of any of the foregoing organizations. All members of the wetland protection board shall be voting members, except the county commissioner who shall serve in an advisory capacity as a nonvoting member.
(b) Terms. -- Each member of a wetland protection board shall be appointed for a term of office of four years except the initial appointment of two voting board members shall be for a term of two years:
(1) No member may serve for more than two consecutive full terms; and
(2) An appointment to fill a vacancy shall be for the remainder of the unexpired term.
§8A-13-5. Wetland protection boards -- Powers.
A wetland protection board has the following general powers:
(a) Power to sue. -- To sue and be sued in contractual matters in its own name;
(b) Power to contract. -- To enter into contracts generally and to execute all instruments necessary or appropriate to carry out its purposes;
(c) Power to restrict use of wetlands. -- To acquire or cohold, by gift, purchase, devise, bequest or grant, easements in gross, fee or other rights to restrict the use of wetlands as may be designated to maintain the character of the wetlands: Provided, That the county commission has final approval authority for any and all purchases of easements for the wetland protection program by the board;
(d) Power to implement rules. -- To implement rules necessary to achieve the purposes of the voluntary wetland protection programs;
(e) Power to disseminate information. -- To promote the dissemination of information throughout the county concerning the activities of the wetland protection board; and
(f) Power to seek funding. -- To pursue and apply for any and all county, state, federal and private funding available, consistent with the purpose of the voluntary wetland protection programs.
§8A-13-6. Wetland protection board duties.
The duties of each wetland protection board are as follows:
(a) To report to the county commission with respect to the acquisition of easements by the wetland protection board within the county and to obtain final approval authority for any and all purchases of easements for the wetland protection program by the board;
(b) To advise the authority concerning county priorities for wetland maintenance and preservation;
(c) To promote protection of wetlands within the county by offering information and assistance to wetland owners with respect to preferred activities related to ecological and environmental concerns;
(d) To seek and apply for all available funds from federal, state, county and private sources to accomplish the purposes of the voluntary wetland protection programs; and
(e) To perform any other duties assigned by the county commission.
§8A-13-7. West Virginia wetland protection authority -- Established.

A West Virginia wetland protection authority is established within the Division of Natural Resources. The authority has the powers and duties provided in this article.
§8A-13-8. West Virginia wetland protection authority -- Board of Trustees.

(a) Composition; chairman; quorum; qualifications. -- The authority established on the first day of July, two thousand six, shall be governed and administered by a board of trustees composed of the State Treasurer, the Auditor and the Commissioner of Natural Resources, who shall serve as ex officio members, and nine members to be appointed by the Governor, by and with the advice and consent of the Senate, at least five of whom shall be representative of marine biologists from different areas of the state. The State Treasurer, Auditor and the Commissioner of Natural Resources
may appoint designees to serve on the board of trustees. One of the appointed members who is not a representative of marine biologists shall be a representative of the Division of Natural Resources; one of the appointed members who is not a marine biologist representative shall be a representative of the conservation district; and one of the appointed members who is not a marine biologist representative of The Division of Tourism. Three of the five marine biologist representatives shall be appointed as follows:
(1) Two from a list of five nominees submitted by the West Virginia Division of Natural Resources; and
(2) One from a list of three nominees submitted by the Governor.
The Governor shall appoint the chairman of the board from among the nine appointed members. A majority of the members of the board serving at any one time constitutes a quorum for the transaction of business.
Notwithstanding any provision of law to the contrary, a person may be appointed to and serve on the board as an appointed member even if prior to the appointment the person conveyed an easement on the person's wetland to the authority.
(b) Terms. -- (1) The Governor, with the advice and consent of the Senate, shall appoint the nine members for the following terms:
(A) Three for a term of four years;
(B) Three for a term of three years; and
(C) Three for a term of two years.
(2) Successors to appointed members whose terms expire shall be appointed for terms of four years. Vacancies shall be filled for the unexpired term. An appointed member may not serve more than two successive terms. Appointment to fill a vacancy may not be considered as one of two terms.
(c) Oath. -- Appointed members shall take the oath of office as prescribed by law.
(d) Compensation and expenses. -- Members shall not receive compensation. Each member of the board shall receive expense reimbursement for actual expenses incurred while engaged in the discharge of official duties, the actual expenses not to exceed the amount paid to members of the Legislature.
§8A-13-9. West Virginia wetland protection authority -- Powers.

The authority has the following general powers:
(a) Power to sue. -- To sue and be sued in contractual matters in its own name;
(b) Power to contract. -- To enter into contracts generally and to execute all instruments necessary or appropriate to carry out its purposes;
(c) Power to restrict use of wetlands. -- To acquire or cohold, by gift, purchase, devise, bequest or grant, easements in gross, fee or other rights to restrict the use of wetlands as may be designated to maintain the character of the wetlands in its natural ecological and environmental state;
(d) Power to disseminate information. -- To promote the dissemination of information throughout the state concerning the activities of the wetland protection board; and
(e) Power to seek funding. -- To pursue and apply for any and all state, federal and private funding available consistent with the purpose of the voluntary wetland protection programs.
§8A-13-10. West Virginia wetland protection authority -- Duties.

The authority shall:
(a) Disseminate information regarding wetland protection and promote the protection of wetlands in the state;
(b) Assist county wetland protection boards in applying for and obtaining all state and federal funding available consistent with the purposes of the wetland protection programs;
(c) Upon request of a wetland protection board, provide technical and legal services necessary to procure, acquire, draft, file and record conservation and preservation easements;
(d) Prepare and file electronically with the Governor's office and with the Legislature by the thirty-first day of August of each year a report including, but not limited to, the following information:
(1) The cost per easement obtained;
(2) The identity of all applicants for conservation and preservation easements; and
(3) The identity of all applicants from whom conservation and preservation easements have been acquired;
(e) Seek and apply for all available funds from federal, state and private sources to accomplish the purposes of the wetland protection programs.
§8A-13-11. Definitions.
For purposes of the voluntary wetland protection programs, the following terms have the meanings set forth in this section.
(a) Acquisition of easement. -- The holding or coholding of wetland-use restrictions as defined in this article, whether obtained through purchase, gift, devise, bequest, grant or contract to cohold with another holder.
(b) Conservation easement. -- This article incorporates the definition of a conservation easement found in section three, article twelve, chapter twenty of this code, except that a conservation easement created under this article must be held or coheld by at least one "holder" as defined in that section in perpetuity.
(c) Wetland. -- A geographically defined area
any size, historically containing high contents of moisture or water accumulation or dispersal, whether in the form of swamps, creeks, waterfalls, ponds, lakes, rivers or other areas with similar concentrations or collections of moisture or water and includes all real property designated as wetlands that are part of a property used or useable as a wetland for any purpose, including, but not limited to, recreation, navigation, agriculture, commerce, energy production or other uses associated with high moisture content or water collection or dispersal.
(d) Preservation easement. -- This article incorporates the definition of a preservation easement found in section three, article twelve, chapter twenty of this code, except that a preservation easement created under this article must be held or coheld by at least one "holder" as defined in that section and must be perpetual in its duration.
(e) Opt-out provision. -- A provision which may be inserted into any conservation or preservation easement agreement entered into pursuant to this article which would act as a mechanism to place the easement selling price into an escrow fund for the purpose of allowing the owner or owners up to five years to rescind the decision to enter into the wetland protection program.
§8A-13-12. Methods of wetland protection.
(a) The authority or a county wetland protection board may negotiate with and compensate eligible property owners to ensure the protection of wetlands within the county or state. Methods of protecting wetlands may include, but are not limited to, the following:
(1) Acquisition of conservation easement or preservation easement. -- With the consent of a property owner, the county wetland protection board or the authority may acquire and place on record a conservation or preservation easement. Acquired easements apply only to those properties which qualify for consideration under the terms established by an adopted wetland protection program; and
(2) Acquisition of wetland and disposition. -- With the consent of a property owner, the county wetland protection board or the authority may acquire any property which qualifies for wetland protection under terms established by an adopted wetland protection program. The county wetland protection board or the authority may lease, as lessor, acquired property for wetland uses or may restrict the property to wetland uses and sell the property at fair market value for use as a wetland. Any property acquired by a county wetland protection board or the authority and then sold shall be sold subject to a conservation or preservation easement. If the property is leased, the lessee shall pay to the county commission, in addition to rent, an annual fee set by the county commission. The amount of this annual fee shall be commensurate with the amount of property taxes which would be assessed in accordance with the provisions of this code upon the property if the property were held by a private wetland owner.
(b) Revenues from the sale of properties restricted to wetland uses shall be used to recover the original purchase costs of the properties and shall be returned to the applicable funds which were used by the county wetland protection board or the authority to purchase the property. Any profits resulting from the sale of property restricted to wetland uses shall be deposited in a wetland protection fund.
§8A-13-13. offer of conservation or preservation easements.
(a) Owner may offer to sell or donate a conservation or preservation easement. -- An owner of a wetland may offer by written application to sell or donate a conservation or preservation easement on all or any portion of the wetland to a county wetland board or the authority.
(b) Requirements for application to sell or donate. -- In order to be considered by a county wetland protection board or the authority, an application to sell or donate shall:
(1) Include an asking price, if any, at which the owner is willing to sell a conservation or preservation easement and shall specify the terms under which the offer is made; and
(2) Include a complete description of the wetland, including, but not limited to, an itemization of all debts secured by the wetland and the identity and amount of all liens.
§8A-13-14. Value of conservation or preservation easement.
(a) Maximum value. -- The maximum value of any conservation or preservation easement acquired by the county wetland protection board or the authority is the asking price or the difference between the fair market value of the wetland intrinsically and its value associated with its recreational, agricultural, commercial or other usage, whichever is lower.
(b) Fair market value. -- The fair market value of the wetland is the price as of the valuation date for the highest and best use of the wetland which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay for the property if the property was not subject to any restriction imposed under this article.
(c) Agricultural value of wetland. -- The agricultural value of a wetland is the price as of the valuation date which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay for the property subject to the restrictions placed upon it by the conservation or preservation easement.
(d) Determination of values. -- The value of the easement is determined at the time the county wetland protection board or the authority is requested in writing to acquire the easement. The fair market value is determined by the county wetland protection board or the authority based on one or more appraisals obtained by the county wetland protection board or the authority, and appraisals, if any, of the wetland owner.
(e) Arbitration. -- If the wetland owner and the county wetland protection board or the authority do not agree on the value of the easement as determined by the state, the wetland owner, the county wetland protection board or the authority may request that the matter be referred to a mutually agreed upon mediator for arbitration as to the value of the easement. The arbitration shall be conducted in accordance with the rules promulgated by the American arbitration association. The value determined at arbitration is binding upon the owner and the county wetland protection board or the authority in a purchase of the easement made subsequent to the arbitration for a period of two years, unless the wetland owner and the county wetland protection board or the authority agree upon a lesser value or the wetland owner, the county wetland protection board or the authority appeals the results of the arbitration to the circuit court.
§8A-13-15. Criteria for acquisition of conservation and preservation easements by county wetland protection boards and the authority.

The authority and county wetland protection boards, in ranking applications for conservation and preservation easements, shall consider the following factors as priorities:
(a) The imminence of residential, commercial or industrial development;
(b) The total acreage offered for conservation or preservation easement;
(c) The presence of prime wetland, unique wetland, wetland of statewide importance, other locally significant wetlands and the agricultural productive capacity of the wetland, if any;
(d) Whether the wetland offered is contiguous or appurtenant to other wetlands of similar or dissimilar characteristics;
(e) The ratio of the asking price, if any, of the easement to the fair market value of the easement;
(f) The historical, architectural, archaeological, cultural, recreational, natural, scenic, source water protection or unique value of the easement: Provided, That determinations of the authority or a county wetland protection board are not a substitute for and do not have the effect of other procedures under state or federal law for granting protected status to wetlands, including, but not limited to, procedures under the National Historic Preservation Act of 1966, as amended, or rules of the director of the historic preservation section of the Division of Culture and History authorized in section eight, article one, chapter twenty-nine of this code, or procedures under the authority of the tourism commissioner or the parks and recreation section of the Division of Natural Resources;
(g) The existence and amount of secured debt upon the property, as determined by a title search, and whether the total exceeds the intrinsic value of the wetland as determined by the appraisal as required in subsection (d), section fourteen of this article; and
(h) The length of the protective easement.
§8A-13-16. Use of wetland for which conservation or preservation easement acquired.

(a) Provisions to be included in conservation or preservation easement and county wetland protection board rules, or the authority rules. - A wetland upon which a conservation or preservation easement has been recorded may be used for the following:
(1) Recreational use;
(2) Game or commercial fishing;
(3) Navigation and boating; and
(4) Any commercial use that does not require a Division of Environmental Protection permit to operate.
Notwithstanding any of the exceptions in this subsection, any use of a wetland under a preservation or conservation easement must be consistent with the purpose of the wetland protection programs.
(b) Use for commercial, industrial or residential purposes. -- Excepting existing and future uses described in subsections (c), (d) and (e) of this section, a wetland owner whose wetland is subject to a conservation or preservation easement may not develop the wetland for any commercial, industrial, residential or other nonwetland purpose.
(c) Exclusion for certain existing and future uses. -- This article neither abrogates nor creates any preexisting rights in a wetland owned by any person not joining as a grantor of a conservation or preservation easement. Neither the creation nor the existence of a conservation or preservation easement shall prevent existing or future use of the wetland based on a preexisting right, or prevent any existing or future use consistent with state law with respect to transmission and telecommunications facilities' rights-of-way, easements and licenses.
(e) Condemnation of private property for public use. -- This article neither abrogates nor creates any rights inconsistent with state or federal law respecting the power of condemnation of private property for public use. Any person or entity exercising the power of eminent domain must pay compensation at not less than the fair market value of the wetland to the court having jurisdiction of the proceeding or as directed by the court. The term "fair market value" as used in this subsection shall be determined without regard to the existence of the conservation or preservation easement. Neither the creation nor the existence of a conservation or preservation easement shall prevent acquisition of real property, or any right or interest in the property, for public use.
§8A-13-17. Funding of wetland protection programs.
(a) County funds. --
(1) Creation of county funds. -- Once having created a county wetland protection program, a county commission may authorize the county wetland protection board to create and maintain a wetland protection fund and hire staff as it considers appropriate.
(2) Sources. -- A county wetland protection fund is comprised of:
(A) Any moneys not specifically limited to other uses and dedicated to the fund by a county commission;
(B) Any moneys collected pursuant to section twenty-one of this article;
(C) Any money made available to the fund by grants or transfers from governmental or private sources; and
(D) Any money realized by investments, interest, dividends or distributions.
(b) State fund. --
(1) Created and continued. -- The West Virginia Wetland Protection Fund is created for the purposes specified in this article.
(2) Sources. -- The West Virginia Wetland Protection Fund is comprised of:
(A) Any money made available to the fund by general or special fund appropriations;
(B) Any money made available to the fund by grants or transfers from governmental or private sources;
(C) Any money realized by investments, interest, dividends or distributions; and
(D) Any money appropriated by the Legislature for the West Virginia Wetland Protection Fund.
(3) Disbursements. -- The treasurer may not disburse any money from the fund other than:
(A) For costs associated with the staffing, administration, and technical and legal duties of the authority;
(B) For reasonable expenses incurred by the members of the board of trustees of the authority in the performance of official duties; and
(C) For consideration in the purchase of wetland conservation and preservation easements.
(4) Money remaining at end of fiscal year. -- Any money remaining in the fund at the end of a fiscal year shall not revert to the General Revenue Fund of the state, but shall remain in the West Virginia Wetland Protection Fund to be used for the purposes specified in this article.
(5) Budget. -- The estimated budget of the authority for the next fiscal year shall be included with the budget of the West Virginia Department of Agriculture.
(6) Audit. -- The fund shall be audited annually.
§8A-13-18. Disbursements by the authority to county wetland protection boards.

(a) Applications; amount. -- If a county has established a county wetland protection program, the authority shall distribute within sixty days after the end of its fiscal year at least eighty percent of that fiscal year's remaining funds to county wetland protection boards who have certified to the authority that there is then pending an application for one or more conservation or preservation easements. Each certification shall include:
(1) The name of each applicant for an easement and the date of each application for an easement during the fiscal year;
(2) A description of the wetland upon which an easement is offered; and
(3) An appraisal of the value of the conservation or preservation easement as provided in section fourteen of this article.
(b) Disbursement formula. -- Disbursement of authority funds to qualifying counties shall be based on the ratio of each county wetland protection board's appraisal value of conservation and preservation easement applications, including those applications to donate easements, received during the fiscal year to the total of the appraisal value of all applications for conservation and preservation easements for the fiscal year received by the authority from county wetland protection boards. Applications for easement donations may only be counted if the county wetland protection board holds or coholds the easement.
§8A-13-19. Authorization for Commissioner of Natural Resources to promulgate proposed rules.

The Commissioner of Natural Resources may propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code to implement the provisions of this article.





NOTE: The purpose of this bill is to establish the Voluntary Wetland Protection Programs. The bill provides for legislative findings and purpose while providing for county wetland protection programs and authorizing wetland protection boards. The bill also authorizes county commissions to approve purchases of wetland easements. It further provides a required content of wetland protection programs while providing for wetland protection boards and the respective boards' powers and duties. The bill establishes the West Virginia Wetland Protection Authority and prescribes its powers and duties. It sets forth methods of wetland protection as it authorizes owners of wetlands to offer conservation and preservation easements. It provides for the valuation of conservation and preservation easements while providing criteria to be used by county wetland protection boards and the authority for acquiring easements. Finally, it prescribes various means for funding of wetland protection programs and authorizes the Commissioner of Natural Resources to propose rules.

This article is new; therefore, strike-throughs and underscoring have been omitted.