Commissioner of natural resources conveyance and approval of certain sales of tax-forfeited land duties and requirements provision

A bill for an act

relating to natural resources; requiring conveyor of land to commissioner of natural

resources to ensure that conveyance does not result in loss of revenue to affected

counties; clarifying authority to issue timber permits in wildlife management areas;

requiring extension of certain timber permits when mills not accepting timber;

prohibiting inclusion of certain land in wildlife management areas; removing

requirement that commissioner of natural resources approve certain sales of

tax-forfeited land; requiring reports; amending Minnesota Statutes 2024, sections

84.0272, by adding a subdivision; 90.151, subdivision 1; 90.193; 97A.133, by

adding a subdivision; 282.01, subdivision 3; 282.011, subdivision 1; 282.018,

subdivision 1; 282.02; 282.14; 282.221; proposing coding for new law in Minnesota

Statutes, chapter 84.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 84.0272, is amended by adding a subdivision

to read:

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Subd. 6.

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No loss of county tax revenue.

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(a) The commissioner may not purchase or

otherwise acquire land if the acquisition will result in a loss of tax revenue to a county unless

the party conveying the property enters into an agreement with the county to pay the county

each year an amount equal to the amount of net tax calculated for the property, computed

using the estimated market value of the property each assessment year, as if the property

were not exempt from taxation. Payment must be made as required under section 279.01

for each year the property remains exempt.

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(b) Notwithstanding any other provision of law, if a payment required by paragraph (a)

is not made, the commissioner must convey the affected land for no consideration to the

county in which the land is located and the county may then dispose of the land in the same

manner that tax-forfeited land may be disposed of under chapter 282. The requirements of

this paragraph are deemed to be included in the terms of any conveyance subject to paragraph

(a).

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Sec. 2.

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[84.0278] LAND OWNERSHIP AND STEWARDSHIP REPORTS.

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Subdivision 1.

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Annual report.

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By January 1 each year, the commissioner of natural

resources must report to the chairs and ranking minority members of the legislative

committees and divisions with jurisdiction over natural resources policy and finance on

land that the department owned or had stewardship over during the previous calendar year.

Each report must contain:

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(1) a list of all property owned by the department;

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(2) a list of all property on which the department owned an easement;

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(3) a list of all property over which the department had some other legal authority;

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(4) a list of all real property or interests in real property that were disposed of by the

department;

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(5) a statement of all expenditures or costs attributable to the ownership, stewardship,

or disposal of each property identified in the report; and

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(6) an explanation of how the ownership, stewardship, or disposal of each property

identified in the report serves the interests of the state and furthers the specific statutory

duties of the department.

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Subd. 2.

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Quarterly updates.

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By April 1, July 1, and October 1 each year, the

commissioner must submit to the chairs and ranking minority members of the legislative

committees and divisions with jurisdiction over natural resources policy and finance a report

on changes to the land the department owned, owned an easement on, or had some other

legal authority over during the previous quarter.

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Subd. 3.

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Required information.

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Property listings identified in a report required by this

section must include information about the property's location, parcel number, and acreage.

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Sec. 3.

Minnesota Statutes 2024, section 90.151, subdivision 1, is amended to read:

Subdivision 1.

Issuance; expiration.

(a) Following receipt of the down payment for

state timber required under section
90.14
or
90.191
, the commissioner shall issue a numbered

permit to the purchaser, in a format approved by the commissioner, by the terms of which

the purchaser is authorized to enter upon the land and to cut and remove the timber described

in the permit as designated for cutting in the report of the state appraiser, according to the

provisions of this chapter. The permit must be correctly dated and executed by the

commissioner and signed by the purchaser. If a permit is not signed by the purchaser within

45 days from the date of purchase, the permit cancels and the down payment for timber

required under section
90.14
forfeits to the state. The commissioner may grant an additional

period for the purchaser to sign the permit, not to exceed ten business days, provided the

purchaser pays a $200 penalty fee.

(b) The permit expires no later than five years after the date of sale as the commissioner

shall specify or as specified under section
90.191
, and the timber must be cut and removed

within the time specified. If additional time is needed, the permit holder must request, before

the expiration date, and may be granted, for good and sufficient reasons, up to 90 additional

days for the completion of skidding, hauling, and removing all equipment and buildings.

All cut timber, equipment, and buildings not removed from the land after expiration of the

permit becomes the property of the state.

(c) The commissioner may grant additional time not to exceed 240 days for removing

cut timber, equipment, and buildings upon receipt of a written request by the permit holder

for good and sufficient reasons. The permit holder may combine in the written request under

this paragraph the request for additional time under paragraph (b).

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(d) Notwithstanding any other provision of law, the director of the Division of Forestry

in the Department of Natural Resources has final authority to determine whether issuance

of a permit under this section to cut and remove timber from land that is part of a wildlife

management area is consistent with sustainably managing the state's forest resources for

multiple uses, conserving and enhancing the state's fish and wildlife and the habitats on

which they depend, and managing and protecting the state's ecosystems and endangered

species.

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Sec. 4.

Minnesota Statutes 2024, section 90.193, is amended to read:

90.193 EXTENSION OF TIMBER PERMITS.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Closure period" means any period during which a previously utilized mill is not

accepting the permitted type of wood.

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(c) "Eligible timber permit" means a valid timber permit issued on or after January 1,

2024.

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(d) "Permitted type of wood" means the type of wood authorized to be cut and removed

under the terms of a valid timber permit.

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(e) "Previously utilized mill" means a mill that has accepted the permitted type of wood

from the timber permit holder at any point during the previous two years.

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Subd. 2.

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Mandatory extension.

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Notwithstanding any provision in this chapter to the

contrary, when an eligible timber permit holder provides the commissioner with satisfactory

evidence that a previously utilized mill is in a closure period, the commissioner must extend

the timber permit for the duration of the closure period. Once the closure period ends, the

validity of the eligible timber permit must be extended for an amount of time equal to the

portion of the term of the timber permit that coincided with the closure period.

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Subd. 3.

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Discretionary extension.

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The commissioner may, in the case of an exceptional

circumstance beyond the control of the timber permit holder which makes it unreasonable,

impractical, and not feasible to complete cutting and removal under the permit within the

time allowed, grant one regular extension for one year. A written request for the regular

extension must be received by the commissioner before the permit expires. The request

must state the reason the extension is necessary and be signed by the permit holder. An

interest rate of five percent may be charged for the period of extension.

Sec. 5.

Minnesota Statutes 2024, section 97A.133, is amended by adding a subdivision to

read:

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Subd. 3a.

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Prohibition on including certain land.

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The commissioner may not include

land acquired with federal money after July 1, 2026, in a wildlife management area.

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Sec. 6.

Minnesota Statutes 2024, section 282.01, subdivision 3, is amended to read:

Subd. 3.

Nonconservation lands; appraisal and sale.

(a) All parcels of land classified

as nonconservation, except those which may be reserved, shall be sold as provided, if it is

determined, by the county board of the county in which the parcels lie, that it is advisable

to do so, having in mind their accessibility, their proximity to existing public improvements,

and the effect of their sale and occupancy on the public burdens. Any parcels of land proposed

to be sold
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, and any standing timber thereon,
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shall be first appraised by the county board of

the county in which the parcels lie. The parcels
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, and any standing timber thereon,
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may be

reappraised whenever the county board deems it necessary to carry out the intent of sections

282.01
to
282.13
.
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The county board may consult with the commissioner of natural resources

on any appraisal under this paragraph.
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(b) In an appraisal the value of the land and any standing timber on it shall be separately

determined. No parcel of land containing any standing timber may be sold until the appraised

value of the timber on it and the sale of the land have been approved by the commissioner

of natural resources. The commissioner shall base review of a proposed sale on the policy

and considerations specified in subdivision 1. The decision of the commissioner shall be in

writing and shall state the reasons for it. The commissioner's decision is exempt from the

rulemaking provisions of chapter 14 and section
14.386
does not apply. The county may

appeal the decision of the commissioner in accordance with chapter 14.

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(c) In any county in which a state forest or any part of it is located, the county auditor

shall submit to the commissioner at least 60 days before the first publication of the list of

lands to be offered for sale a list of all lands included on the list which are situated outside

of any incorporated municipality. If, at any time before the opening of the sale, the

commissioner notifies the county auditor in writing that there is standing timber on any

parcel of land, the parcel shall not be sold unless the requirements of this section respecting

the separate appraisal of the timber and the approval of the appraisal by the commissioner

have been complied with. The commissioner may waive the requirement of the 60-day

notice as to any parcel of land which has been examined and the timber value approved as

required by this section.

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(d)
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(b)
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If any public improvement is made by a municipality after any parcel of land has

been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in

whole or in part against the property benefited by it, the clerk of the municipality shall

certify to the county auditor, immediately upon the determination of the assessments for

the improvement, the total amount that would have been assessed against the parcel of land

if it had been subject to assessment; or if the public improvement is made, petitioned for,

ordered in or assessed, whether the improvement is completed in whole or in part, at any

time between the appraisal and the sale of the parcel of land, the cost of the improvement

shall be included as a separate item and added to the appraised value of the parcel of land

at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land

from lien for the special benefit conferred upon it by reason of the public improvement until

the cost of it, including penalties, if any, is paid. The county board shall determine the

amount, if any, by which the value of the parcel was enhanced by the improvement and

include the amount as a separate item in fixing the appraised value for the purpose of sale.

Sec. 7.

Minnesota Statutes 2024, section 282.011, subdivision 1, is amended to read:

Subdivision 1.

Classification, sale, procedures and conditions.

Any lands which have

become the absolute property of the state through forfeiture for nonpayment of taxes and

which have been classified by the county board as conservation lands under the provisions

of section
282.01
, or have been classified as nonagricultural lands under the provisions of

section
282.14
, or any such lands which shall hereafter be so classified, may be designated

by the county board of the county in which such lands lie, by resolution duly adopted, as

appropriate and primarily suitable for either specific conservation purposes or for auxiliary

forest lands. Any resolution so adopted, together with a list of the lands involved
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,
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shall be

forwarded to the
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commissioner of natural resources who shall promptly approve or disapprove

the whole or any part thereof. The commissioner shall thereupon make a certificate showing

the lands approved, transmit the same to the
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county auditor who shall record the same.

Lands so designated
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and so approved
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shall thereupon be appraised and the whole, or any

part thereof, may be offered for sale and sold in the same manner as provided for the sale

of lands classified as nonconservation lands under section
282.01
, or as agricultural lands

under section
282.14
, as the case may be, according to the status of such lands upon forfeiture.

The right to a deed of conveyance to such property accorded the purchaser at any such sale

shall be conditioned upon the lands being placed in an auxiliary forest or used for designated

conservation purposes as designated by the resolution of the county board.

Sec. 8.

Minnesota Statutes 2024, section 282.018, subdivision 1, is amended to read:

Subdivision 1.

Land on or adjacent to public waters.

(a) All land which is the property

of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether

the land is held in trust for taxing districts, and which borders on or is adjacent to meandered

lakes and other public waters and watercourses, and the live timber growing or being thereon,

is hereby withdrawn from sale except as hereinafter provided. The authority having

jurisdiction over the timber on any of these lands may sell the timber as otherwise provided

by law for cutting and removal under the conditions as the authority may prescribe in

accordance with approved, sustained yield forestry practices. The authority having jurisdiction

over the timber shall reserve the timber and impose the conditions as the authority deems

necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features.

Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress

approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject

to like restrictions as are now imposed by that act on federal lands.

(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public

waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary

high-water mark being the waterside boundary thereof, and the land side boundary thereof

being a line drawn parallel to the ordinary high-water mark and two rods distant landward

therefrom, hereby is reserved for public travel thereon, and whatever the conformation of

the shore line or conditions require, the authority having jurisdiction over these lands shall

reserve a wider strip for these purposes.

(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by

the authority having jurisdiction over the land, in the manner otherwise provided by law

for the sale of the lands, if the authority determines that it is in the public interest to do so.

Any tract or parcel of land within a plat of record bordering on or adjacent to meandered

lakes and other public waters and watercourses may be sold by the authority having

jurisdiction over the land, in the manner otherwise provided by law for the sale of the lands,

if the authority determines that it is in the public interest to do so.
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If the authority having

jurisdiction over the land is not the commissioner of natural resources, the land may not be

offered for sale without the prior approval of the commissioner of natural resources.
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(d) Where the authority having jurisdiction over lands withdrawn from sale under this

section is not the commissioner of natural resources, the authority may submit proposals

for disposition of the lands to the commissioner. The commissioner of natural resources

shall evaluate the lands and their public benefits and make recommendations on the proposed

dispositions to the committees of the legislature with jurisdiction over natural resources.

The commissioner shall include any recommendations of the commissioner for disposition

of lands withdrawn from sale under this section over which the commissioner has jurisdiction.

The commissioner's recommendations may include a public sale, sale to a private party,

acquisition by the Department of Natural Resources for public purposes, or a cooperative

management agreement with, or transfer to, another unit of government.

(e) Notwithstanding this subdivision, a county may sell property governed by this section

upon written authorization from the commissioner of natural resources. Prior to the sale or

conveyance of lands under this subdivision, the county board must give notice of its intent

to meet for that purpose as provided in section
282.01, subdivision 1
.

Sec. 9.

Minnesota Statutes 2024, section 282.02, is amended to read:

282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS

PERMITTED.

(a) Immediately after classification and appraisal of the land,
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and after approval by the

commissioner of natural resources when required pursuant to section
282.01, subdivision

3
,
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the county board shall provide and file with the county auditor a list of parcels of land to

be offered for sale. This list shall contain a description of the parcels of land and the appraised

value thereof. The auditor shall publish a notice of the intended public sale of such parcels

of land and a copy of the resolution of the county board fixing the terms of the sale, if other

than for cash only, by publication once a week for two weeks in the official newspaper of

the county, the last publication to be not less than ten days previous to the commencement

of the sale.

(b) The notice shall include the parcel's description and appraised value. The notice shall

also indicate the amount of any special assessments which may be the subject of a

reassessment or new assessment or which may result in the imposition of a fee or charge

pursuant to sections
429.071, subdivision 4
,
435.23
, and
444.076
. The county auditor shall

also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this

section, "owner" means the taxpayer as listed in the records of the county auditor.

(c) If the county board determines that the sale shall take place in a county facility other

than the courthouse, the notice shall specify the facility and its location. If the county board

determines that the sale shall take place as an online auction under section
282.01, subdivision

13
, the notice shall specify the auction website and the date of the auction.

Sec. 10.

Minnesota Statutes 2024, section 282.14, is amended to read:

282.14 CLASSIFICATION AS AGRICULTURAL; SALE CONDITIONS,

GENERALLY.

All parcels of land becoming the absolute property of the state under the provisions of

the 1938 Supplement to Mason's Minnesota Statutes of 1927, section 2139-2, and acts

amendatory thereof or supplementary thereto, situated within any conservation or

reforestation area created under the provisions of sections
84A.20
to
84A.30
, or
84A.31
to

84A.42
, shall be classified by the county board of the county wherein such parcels lie as

agricultural and nonagricultural, which classification shall be approved by the commissioner

of natural resources before any lands are offered for sale. The county board of the county

wherein such parcels lie shall determine the appraised value of all lands classified and

approved as agricultural and may reappraise annually if in their judgment it be deemed

necessary to carry out the intent of sections
282.14
to
282.22
. Any merchantable timber on

such agricultural land shall be appraised separately, and such appraisal approved by the

commissioner of natural resources. All such parcels of land, classified as agricultural, shall

be sold by the state at public sale, as provided in sections
282.15
and
282.16
, when it shall

be determined by the county board of the county wherein such parcels lie that it is advisable

to do so. No such lands shall be sold by the board of county commissioners without the

approval of the commissioner of natural resources. All sales of land shall be made in

accordance with the subdivisions thereof by the United States surveys unless the same shall

have been subdivided into smaller parcels or lots, but no land shall be sold in larger quantity

than 160 acres.
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Nothing in this section shall be construed to prevent a county from

reclassifying lands governed by this section as nonconservation lands in accordance with

section 282.01, subdivision 1, paragraph (b), or disposing of those lands as authorized in

this chapter.
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Sec. 11.

Minnesota Statutes 2024, section 282.221, is amended to read:

282.221 FORFEITED AGRICULTURAL LANDS.

Subdivision 1.

Classified and sold.

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(a)
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All lands
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which
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that
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become the absolute property

of the state under
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the provisions of
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section
84A.07
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,
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and are suitable for agricultural purposes
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,
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shall
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must
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be classified as
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such
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agricultural lands
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by the county board of the county wherein

the lands are situated.

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(b)
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No
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lands
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land
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shall be offered for sale under
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the provisions of
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sections
282.221
to

282.226
until
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their classification by
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the county board
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classifies the land
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as agricultural
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lands

shall have been approved by the commissioner
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land according to paragraph (a)
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.
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Once the

classification is made,
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the county auditor may
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with the approval of the commissioner
deleted text end
sell

any parcel of tax-forfeited land or any portion thereof to any organized or incorporated

governmental subdivision of the state for any public purpose for which the subdivision may

acquire property at not less than the appraised value thereof as determined by the county

board.

Subd. 2.

Appraisal.

All lands
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which
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that
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have become the absolute property of the state

under
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the provisions of
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section
84A.07
and are classified as agricultural lands
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shall
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must
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be appraised by the county board of the county wherein the lands are situated, and this

appraisal
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shall
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must
new text end
be filed in the office of the auditor of the county. Any merchantable

timber on such lands
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shall
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must
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be appraised separately
deleted text begin
and such appraisal shall be approved

by the commissioner
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. The county board may reappraise any such lands when, in its judgment,

the reappraisal is necessary in effectuating
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the provisions of
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sections
282.221
to
282.226
,

but no such lands shall be appraised more than once in any 12-month period.