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HF 876

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/11/2013 03:58pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to state lands; providing for school forests; amending Minnesota Statutes
2012, sections 89.41; 282.01, subdivisions 1a, 1d.

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

Section 1.

Minnesota Statutes 2012, section 89.41, is amended to read:


89.41 deleted text begin EDUCATIONAL UNITS MAY ESTABLISH AND MAINTAINdeleted text end new text begin SCHOOL
new text end FORESTS.

new text begin Subdivision 1. new text end

new text begin Establishment and maintenance of school forests. new text end

Any school
district in the state, however organized, the University of Minnesota, or any branch
thereof, any state university, community college, or other public educational institution
or agency of the state, all herein referred to as agencies, may establish and maintain
new text begin schoolnew text end forests deleted text begin as herein provideddeleted text end new text begin according to this sectionnew text end , subject to the approval of the
commissioner of natural resources. deleted text begin Any such agency may use for the purpose of such a
forest any land belonging to it, or may acquire land therefor by gift or with contributed
funds.
deleted text end new text begin For the purpose of a school forest, an agency may use land the agency owns or uses
under an agreement or may acquire land by gift or with contributed funds.
new text end

new text begin Subd. 2. new text end

new text begin Conveyance of tax-forfeited land for school forest use. new text end

For the purposes
of deleted text begin such forestdeleted text end new text begin school forests established under this section,new text end any tax-forfeited lands may be
sold by the county board to deleted text begin any suchdeleted text end new text begin annew text end agency or may be conveyed by the commissioner of
revenue to deleted text begin any suchdeleted text end new text begin annew text end agency in like manner as provided for the sale or conveyance of deleted text begin such
deleted text end new text begin tax-forfeitednew text end lands to governmental subdivisions under section 282.01 deleted text begin and amendments
thereof
deleted text end .new text begin A conveyance under this subdivision is made without monetary compensation or
consideration for the conveyance, but the conveyance is subject to the conditional use and
reversion provisions under section 282.01, subdivisions 1c and 1d, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Monitoring and reporting. new text end

new text begin The commissioner shall annually monitor
tax-forfeited lands conveyed according to subdivision 2 to determine whether the
lands continue to be used as school forests. The commissioner shall submit an annual
monitoring report to the commissioner of revenue that identifies any lands no longer
used as school forests.
new text end

Sec. 2.

Minnesota Statutes 2012, section 282.01, subdivision 1a, is amended to read:


Subd. 1a.

Conveyance to public entities.

(a) Upon written request from a state
agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
must be withheld from sale or lease to others for a maximum of six months. The request
must be submitted to the county auditor. Upon receipt, the county auditor must withhold
the parcel from sale or lease to any other party for six months, and must confirm the
starting date of the six-month withholding period to the requesting agency or subdivision.
If the request is from a governmental subdivision of the state, the governmental
subdivision must pay the maintenance costs incurred by the county during the period the
parcel is withheld. The county board may approve a sale or conveyance to the requesting
party during the withholding period. A conveyance of the property to the requesting
party terminates the withholding period.

A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months
of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given notice to the
requesting state agency or governmental subdivision of the state that the county intends to
sell or otherwise dispose of the property.

(b) Nonconservation tax-forfeited lands may be sold by the county board, for
their market value as determined by the county board, to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property. When the term "market value" is used in this section, it
means an estimate of the full and actual market value of the parcel as determined by the
county board, but in making this determination, the board and the persons employed by or
under contract with the board in order to perform, conduct, or assist in the determination,
are exempt from the licensure requirements of chapter 82B.

(c) Nonconservation tax-forfeited lands may be released from the trust in favor of
the taxing districts on application to the county board by a state agency for an authorized
use at not less than their market value as determined by the county board.

(d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:

(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market, or the reduced price will
lead to the development of affordable housing; and

(2) the governmental subdivision or state agency has documented its specific plans
for correcting the blighted conditions or developing affordable housing, and the specific
law or laws that empower it to acquire real property in furtherance of the plans.

If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quit claim
deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
conveyance document that releases the property from the trust in favor of the taxing
districts.

(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed by the commissioner of revenue in the name of the state to a
governmental subdivision for an authorized public use, if an application is submitted to the
commissioner which includes a statement of facts as to the use to be made of the tract and
the favorable recommendation of the county board. For the purposes of this paragraph,
"authorized public use" means a use that allows an indefinite segment of the public to
physically use and enjoy the property in numbers appropriate to its size and use, or is for a
public service facility. Authorized public uses as defined in this paragraph are limited to:

(1) a road, or right-of-way for a road;

(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;

(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;

(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
including transit ways, park-and-ride lots, transit stations, maintenance and garage
facilities, and other facilities related to a public transit system;

(5) public beaches or boat launches;

(6) public parking;

(7) civic recreation or conference facilities; and

(8) public service facilities such as fire halls, police stations, lift stations, water
towers, sanitation facilities, water treatment facilities, and administrative offices.

No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.

(f) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision of the state by quit claim deed
on behalf of the state upon the favorable recommendation of the county board if the
governmental subdivision has certified to the board that prior to forfeiture the subdivision
was entitled to the parcel under a written development agreement or instrument, but
the conveyance failed to occur prior to forfeiture. No compensation or consideration is
required for, and no conditions attach to, the conveyance.

(g) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to the association of a common interest community by quit claim deed
upon the favorable recommendation of the county board if the association certifies to the
board that prior to forfeiture the association was entitled to the parcel under a written
agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.

(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
the state for less than its market value for either: (1) creation or preservation of wetlands;
(2) drainage or storage of storm water under a storm water management plan; or (3)
preservation, or restoration and preservation, of the land in its natural state. The deed must
contain a restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the
governmental subdivision may reconvey the property to the state in trust for the taxing
districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph shall be refunded upon a
reconveyance, but the amount paid for a conveyance under this paragraph may be taken
into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the commissioner
of natural resources determines there is a mineral use potential, the sale is subject to the
approval of the commissioner of natural resources.

(i) A park and recreation board in a city of the first class is a governmental
subdivision for the purposes of this section.

new text begin (j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
by the commissioner of revenue in the name of the state to a governmental subdivision for
a school forest under section 89.41. An application that includes a statement of facts as
to the use to be made of the tract and the favorable recommendation of the county board
and the commissioner of natural resources must be submitted to the commissioner of
revenue. No monetary compensation or consideration is required for the conveyance, but
the conveyance is subject to the conditional use and reversion provisions of subdivisions
1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
property back to the state in trust for the taxing districts. The deed of reconveyance is
subject to approval by the commissioner of revenue.
new text end

Sec. 3.

Minnesota Statutes 2012, section 282.01, subdivision 1d, is amended to read:


Subd. 1d.

Reverter for failure to use; conveyance to state.

(a) After three years
from the date of any conveyance of tax-forfeited land to a governmental subdivision for
an authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1)
with the approval of the county board, purchase the property for an authorized public
purpose at the present market value as determined by the county board, or (2) authorize
the proper officers to convey the land, or the part of the land not required for an authorized
public use, to the state of Minnesota in trust for the taxing districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall, upon proper
application submitted by the county auditor, convey the property on behalf of the state by
quit claim deed to the subdivision free of a use restriction and the possibility of reversion
or defeasement. If the governing body decides to reconvey the property to the state under
this clause, the officers shall execute a deed of conveyance immediately. The conveyance
is subject to the approval of the commissioner and its form must be approved by the
attorney general. For 15 years from the date of the conveyance, there is no failure to put
the land to the authorized public use and no abandonment of that use if a formal plan of
the governmental subdivision, including, but not limited to, a comprehensive plan or land
use plan, shows an intended future use of the land for the authorized public use.

(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date
of the conveyance if the commissioner determines upon written application from the
subdivision that the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no current plans
to change the use of the lands. Prior to conveying the property, the commissioner shall
inquire whether the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or obligation of
the subdivision. If the county does not object within 60 days, and the commissioner makes
a favorable determination, the commissioner shall issue a quit claim deed on behalf of
the state unconditionally conveying the property to the governmental subdivision. For
purposes of this paragraph, demonstration of an intended future use for the authorized
public use in a formal plan of the governmental subdivision does not constitute use for
that authorized public use.

(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The
county board may authorize the county treasurer to deduct the amount of the recording
fees from future settlements of property taxes to the subdivision.

(d) new text begin Except for tax-forfeited land conveyed to establish a school forest under section
89.41,
new text end property conveyed under a conditional use deed executed under this section by
the commissioner of revenue, regardless of when the deed for the authorized public use
was executed, is released from the use restriction and reverter, and any use restriction or
reverter for which no declaration of reversion has been recorded with the county recorder
or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
years from the date the deed was acknowledged; or (3) final resolution of an appeal to
district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.

new text begin (e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end