HF 5246

as introduced - 93rd Legislature (2023 - 2024) Posted on 05/01/2024 12:07am

A bill for an act
relating to state finance; establishing a tax-forfeited lands settlement account;
transferring money; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 282.

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

Section 1.

new text begin [282.42] TAX-FORFEITED LANDS SETTLEMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Applicable start date" means:
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new text begin (1) for Hennepin County, August 16, 2012;
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new text begin (2) for St. Louis County, June 2, 2016; and
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new text begin (3) for all other counties, June 23, 2016.
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new text begin (c) "Commissioner" means the commissioner of management and budget.
new text end

new text begin (d) "Participating county" means a county that:
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new text begin (1) elects to participate in the settlement;
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new text begin (2) agrees to provide the commissioner with all public property tax records reasonably
necessary to effectuate the settlement agreement by August 1, 2024;
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new text begin (3) agrees to make a good faith effort to sell all properties that forfeited between the
applicable start date and December 31, 2023, other than those that were classified as
conservation lands during that period and those in which title is no longer held in trust by
the state of Minnesota for taxing districts;
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new text begin (4) agrees that for any sale made under clause (3):
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new text begin (i) the sale will be made in accordance with the first two sentences of section 282.01,
subdivision 4, paragraph (a);
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new text begin (ii) the sale will be for cash only and not on terms; and
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new text begin (iii) notwithstanding any provision of chapter 282 to the contrary, 75 percent of the
proceeds of the sale will be remitted to the commissioner for deposit in the tax-forfeited
lands settlement account; and
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new text begin (5) agrees that any properties subject to sale under clause (3) that remain unsold on June
30, 2026, must continue to be managed under the laws governing tax-forfeited lands until
they are disposed of under those laws.
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new text begin (e) "Settlement" means the agreement and order entered on ......., 2024, settling litigation
related to the state's retention of tax-forfeited lands, surplus proceeds from the sale of
tax-forfeited lands, and mineral rights in those lands.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The tax-forfeited lands settlement account is established in the
special revenue fund. The account consists of money transferred to the account and money
deposited in the account under the terms of the settlement.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin Money in the tax-forfeited lands settlement account is
appropriated to the commissioner of management and budget to make payments under the
terms of the settlement for properties located in participating counties. The total amount of
payments under this subdivision must not exceed $109,000,000.
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new text begin Subd. 4. new text end

new text begin Nonparticipating counties. new text end

new text begin A county that is not a participating county retains
all risk of liability for claims related to properties forfeited before January 1, 2024. The
state of Minnesota is not financially responsible for claims related to those properties and
may seek indemnification from counties that are not participating counties for any expenses
or judgments related to those properties.
new text end

new text begin Subd. 5. new text end

new text begin Requirement. new text end

new text begin A county that makes a sale pursuant to subdivision 1, paragraph
(d), clause (3), is required to distribute the sale proceeds pursuant to subdivision 1, paragraph
(d), clause (4), item (iii), by June 30, 2027. If a county does not remit all or a portion of the
amount required to be remitted under subdivision 1, paragraph (d), clause (4), item (iii), by
that date, aid paid to the county pursuant to section 477A.0124 must be reduced in the
following aids payable year by the required amount that was not remitted.
new text end

new text begin Subd. 6. new text end

new text begin Transfer balance to general fund. new text end

new text begin Any remaining balance in the account on
June 30, 2027, is transferred to the general fund.
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new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires July 1, 2027.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin TRANSFER.
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new text begin $109,000,000 in fiscal year 2024 is transferred from the general fund to the tax-forfeited
lands settlement account in the special revenue fund. This is a onetime transfer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end