HF 900

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state lands; modifying landowner's bill of
rights for sales to the state; modifying provisions
for sale of internal improvement land; modifying land
exchange provisions; appropriating money; amending
Minnesota Statutes 2004, sections 84.0274, by adding
subdivisions; 92.03, subdivision 4; 94.342,
subdivisions 1, 3, 4, 5; 94.343, subdivisions 1, 3, 7,
8, 10, by adding subdivisions; 94.344, subdivisions 1,
3, 5, 8, 10, by adding a subdivision; 97A.135,
subdivision 2a; 103F.535, subdivision 1; repealing
Minnesota Statutes 2004, sections 94.343, subdivision
6; 94.344, subdivision 6; 94.348; 94.349.

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

Section 1.

Minnesota Statutes 2004, section 84.0274, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Exception for nonprofit organizations and
governmental entities. new text end

new text begin When the commissioner acquires land or
interests in land from a nonprofit organization or governmental
entity, any or all of the provisions of this section may be
waived by mutual agreement of the commissioner and the nonprofit
organization or governmental entity.
new text end

Sec. 2.

Minnesota Statutes 2004, section 84.0274, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Right of first refusal agreement. new text end

new text begin The
commissioner may enter into a right of first refusal agreement
with a landowner prior to determining the value of the land. No
right of first refusal agreement shall be made for a period of
greater than two years and payment to the landowner for entry
into the agreement shall not exceed $5,000.
new text end

Sec. 3.

Minnesota Statutes 2004, section 92.03,
subdivision 4, is amended to read:

Subd. 4.

Internal improvement lands.

new text begin When new text end lands donated
to the state under the eighth section of an act of Congress
entitled "An act to appropriate the proceeds of the sales of the
public lands, and to grant preemption rights," approved
September 4, 1841, deleted text begin must be deleted text end new text begin are new text end sold deleted text begin and deleted text end new text begin , new text end the money derived from
its sale new text begin must be new text end invested, as provided by the Minnesota
Constitution, article XI, section 8.

Sec. 4.

Minnesota Statutes 2004, section 94.342,
subdivision 1, is amended to read:

Subdivision 1.

Class a.

All land owned by the state and
controlled or administered by the commissioner or by any
division deleted text begin or agency deleted text end of the Department of Natural Resources shall
be known as Class A land for the purposes of sections 94.341 to
94.347. Class A land shall include school, swamp, internal
improvement, and other land granted to the state by acts of
Congress, state forest land, tax-forfeited land held by the
state free from any trust in favor of taxing districts, and
other land acquired by the state in any manner and controlled or
administered as aforesaid; but this enumeration shall not be
deemed exclusive.

Sec. 5.

Minnesota Statutes 2004, section 94.342,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin class c deleted text end new text begin additional restrictions on riparian
land new text end .

Land bordering on or adjacent to any meandered or other
public waters and withdrawn from sale by law is deleted text begin Class C deleted text end new text begin riparian
new text end land. deleted text begin Class C deleted text end new text begin Riparian new text end land may not be given in exchange unless
expressly authorized by the legislature or unless through the
same exchange the state acquires land on the same or other
public waters in the same general vicinity affording at least
equal opportunity for access to the waters and other riparian
use by the public; provided, that any exchange with the United
States or any agency thereof may be made free from this
limitation upon condition that the state land given in exchange
bordering on public waters shall be subject to reservations by
the state for public travel along the shores as provided by
section 92.45, unless waived as provided in this subdivision,
and that there shall be reserved by the state such additional
rights of public use upon suitable portions of such state land
as the commissioner of natural resources, with the approval of
the Land Exchange Board, may deem necessary or desirable for
camping, hunting, fishing, access to the water, and other public
uses. In regard to Class B or deleted text begin Class C deleted text end new text begin riparian new text end land that is
contained within that portion of the Superior National Forest
that is designated as the Boundary Waters Canoe Area Wilderness,
the condition that state land given in exchange bordering on
public waters must be subject to the public travel reservations
provided in section 92.45, may be waived by the Land Exchange
Board upon the recommendation of the commissioner of natural
resources and, if the land is Class B land, the additional
recommendation of the county board in which the land is located.

Sec. 6.

Minnesota Statutes 2004, section 94.342,
subdivision 4, is amended to read:

Subd. 4.

new text begin additional restrictions on new text end state park land.

Land specifically designated by law as a state park may not be
given in exchange unless the land is school trust land that is
exchanged for Class A deleted text begin or Class C deleted text end land located outside a state
park.

Sec. 7.

Minnesota Statutes 2004, section 94.342,
subdivision 5, is amended to read:

Subd. 5.

new text begin additional restrictions on new text end school trust land.

School trust land may be exchanged with other deleted text begin state deleted text end new text begin Class A new text end land
only if the Permanent School Fund Advisory Committee is
appointed as temporary trustee of the school trust land for
purposes of the exchange. The committee shall provide
independent legal counsel to review the exchanges.

Sec. 8.

Minnesota Statutes 2004, section 94.343,
subdivision 1, is amended to read:

Subdivision 1.

General exchange provisions.

deleted text begin Except as
otherwise herein provided, deleted text end new text begin (a) new text end Any Class A land may, with the
unanimous approval of the board, be exchanged for any publicly
held or privately owned land in the manner and subject to the
conditions herein prescribed. new text begin Class A land may be exchanged
only if it meets the requirements of subdivision 3 or 5.
new text end

new text begin (b) new text end The commissioner, with the approval of the board, shall
formulate general programs of exchange of Class A land designed
to serve the best interests of the state in the acquisition,
development, and use of lands for purposes within the province
of the Department of Natural Resources.

Sec. 9.

Minnesota Statutes 2004, section 94.343, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Valuation of land. new text end

new text begin The commissioner shall
cause the state land and the land proposed to be exchanged
therefor to be examined and value determined as provided in
section 84.0272; provided, that in exchanges with the United
States or any agency thereof the examination and value
determination may be made in such manner as the Land Exchange
Board may direct. The determined values shall not be
conclusive, but shall be taken into consideration by the
commissioner and the board, together with such other matters as
they deem material, in determining the values for the purposes
of exchange.
new text end

Sec. 10.

Minnesota Statutes 2004, section 94.343,
subdivision 3, is amended to read:

Subd. 3.

new text begin exchanging land of new text end substantially equal value
deleted text begin required deleted text end new text begin or lower value new text end .

(a) Except as otherwise deleted text begin herein
deleted text end provided, Class A land shall be exchanged only for land of at
least substantially equal value to the state, as determined by
the commissioner, with the approval of the board. deleted text begin For the
purposes of such determination, the commissioner shall cause the
state land and the land proposed to be exchanged therefor to be
examined and appraised by qualified state appraisers as provided
in section 84.0272; provided, that in exchanges with the United
States or any agency thereof the examination and appraisal may
be made in such manner as the Land Exchange Board may direct.
The appraisers shall determine the fair market value of the
lands involved, disregarding any minimum value fixed for state
land by the state Constitution or by law, and shall make a
report thereof, together with such other pertinent information
respecting the use and value of the lands to the state as they
deem pertinent or as the commissioner or the board may require.
Such reports shall be filed and preserved in the same manner as
other reports of appraisal of state lands. The appraised values
shall not be conclusive, but shall be taken into consideration
by the commissioner and the board, together with such other
matters as they deem material, in determining the values for the
purposes of exchange.
deleted text end

(b) For the purposes of this subdivision, "substantially
equal value" means:

(1) where the lands being exchanged are both over 100
acres, their values do not differ by more than ten percent; and

(2) in other cases, the values of the exchanged lands do
not differ by more than 20 percent.

new text begin (c) Other than school trust land, Class A land may be
exchanged for land of lesser value if the other party to the
exchange pays to the state the amount of the difference in value.
Money received by the commissioner in such cases shall be
credited to the same fund as in the case of sale of the land, if
such a fund exists, otherwise to the special fund, if any, from
which the cost of the land was paid, otherwise to the general
fund.
new text end

Sec. 11.

Minnesota Statutes 2004, section 94.343,
subdivision 7, is amended to read:

Subd. 7.

Public hearing.

Before giving final approval to
any exchange of Class A land, the deleted text begin board deleted text end new text begin commissioner new text end shall hold
a public hearing thereon at the capital city or at some place
which it may designate in the general area where the lands
involved are situated deleted text begin ; provided, that the board may direct such
hearing to be held in its behalf by any of its members or by the
commissioner or by a referee appointed by the board deleted text end . The
commissioner shall furnish to the auditor of each county
affected a notice of the hearing signed by the deleted text begin state auditor as
secretary of the board deleted text end new text begin commissioner new text end , together with a list of all
the lands proposed to be exchanged and situated in the county,
and the county auditor shall post the same in the auditor's
office at least two weeks before the hearing. The deleted text begin county
auditor deleted text end new text begin commissioner new text end shall deleted text begin also deleted text end cause a copy of the notice,
referring to the list of lands posted, to be published at least
two weeks before the hearing in a legal newspaper published in
the county. The cost of publication of the notice shall be paid
by the deleted text begin state out of any moneys appropriated for the expenses of
the board deleted text end new text begin commissioner new text end .

Sec. 12.

Minnesota Statutes 2004, section 94.343,
subdivision 8, is amended to read:

Subd. 8.

Proposals for exchange.

The commissioner, with
the approval of the board, may submit a proposal for exchange of
Class A land to any land owner concerned. Any land owner may
submit to the commissioner and the board a proposal for exchange
in such form as the commissioner deleted text begin , with the approval of the
board, deleted text end may prescribe.

Sec. 13.

Minnesota Statutes 2004, section 94.343, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Fees. new text end

new text begin (a) When a private landowner or
governmental unit, except the state, presents to the
commissioner an offer to exchange privately or publicly held
land for Class A land, the private landowner or governmental
unit shall pay to the commissioner a determination of value fee
and survey fee of not less than one-half of the cost of the
determination of value and survey fees as determined by the
commissioner.
new text end

new text begin (b) Except as provided in paragraph (c), any payment made
under paragraph (a) shall be credited to the account from which
the expenses are paid and is appropriated for expenditure in the
same manner as other money in the account.
new text end

new text begin (c) The fees shall be refunded if the land exchange offer
is withdrawn by a private landowner or governmental unit before
the money is spent.
new text end

Sec. 14.

Minnesota Statutes 2004, section 94.343,
subdivision 10, is amended to read:

Subd. 10.

Conveyance.

Conveyance of Class A land given
in exchange shall be made by deed executed by the commissioner
in the name of the state deleted text begin , with a certificate of unanimous
approval by the board appended deleted text end . All such deeds received by the
state shall be recorded or registered in the county in which the
lands lie deleted text begin , and all recorded deeds and certificates of registered
title shall be filed in the office having custody of the state
public land records in the Department of Natural Resources deleted text end .

Sec. 15.

Minnesota Statutes 2004, section 94.344,
subdivision 1, is amended to read:

Subdivision 1.

General exchange provisions.

deleted text begin Except as
otherwise provided, deleted text end Class B land, by resolution of the county
board of the county where the land is located and with the
unanimous approval of the Land Exchange Board, may be exchanged
for any publicly held or privately owned land in the same
county. new text begin Class B land may be exchanged only if it meets the
requirements of subdivision 3 or 5.
new text end

Sec. 16.

Minnesota Statutes 2004, section 94.344, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Valuation of lands. new text end

new text begin For an exchange involving
Class B land for Class A land, the value of the lands shall be
determined by the commissioner, with approval of the Land
Exchange Board. For purposes of the determination, the
commissioner shall determine the value of the state and
tax-forfeited land proposed to be exchanged in the same manner
as Class A land. For all other purposes, the county board shall
appraise the state land and the land in the proposed exchange in
the same manner as tax-forfeited land to be offered for sale.
The determined values shall not be conclusive, but shall be
taken into consideration, together with such other matters as
may be deemed material, in determining the values for the
purposes of exchange.
new text end

Sec. 17.

Minnesota Statutes 2004, section 94.344,
subdivision 3, is amended to read:

Subd. 3.

new text begin exchanging land of new text end substantially equal value
deleted text begin required deleted text end new text begin or lower value new text end .

(a) Except as otherwise provided,
Class B land may be exchanged only for land of substantially
equal value deleted text begin or greater value deleted text end to the state, as determined by the
county board, with the approval of the commissioner and the Land
Exchange Board. deleted text begin For an exchange involving Class B land for
Class A or Class C land, the value of the lands shall be
determined by the commissioner, with approval of the Land
Exchange Board. For purposes of the determination, the
commissioner shall appraise the state and tax-forfeited land
proposed to be exchanged in the same manner as Class A land.
For all other purposes, the county board shall appraise the
state land and the land in the proposed exchange in the same
manner as tax-forfeited land to be offered for sale. The
appraised values shall not be conclusive, but shall be taken
into consideration, together with such other matters as may be
deemed material, in determining the values for the purposes of
exchange.
deleted text end

(b) For the purposes of this subdivision, "substantially
equal value" means:

(1) where the lands being exchanged are both over 100
acres, their values do not differ by more than ten percent; and

(2) in other cases, the values of the exchanged lands do
not differ by more than 20 percent.

new text begin (c) Class B land may be exchanged for land of lesser value
if the other party to the exchange pays to the state the amount
of the difference in value. Money received by the county
treasurer shall be disposed of in like manner as the proceeds of
a sale of tax-forfeited land.
new text end

Sec. 18.

Minnesota Statutes 2004, section 94.344,
subdivision 5, is amended to read:

Subd. 5.

deleted text begin obtaining deleted text end new text begin exchanging new text end land of greater value.

new text begin (a)
new text end Class B land may be exchanged for land of greater value deleted text begin only in
case deleted text end new text begin if new text end the other party to the exchange deleted text begin shall waive deleted text end new text begin waives
new text end payment for the difference.

new text begin (b) Except for Class A school trust land, Class B land may
be exchanged for Class A land of greater value if the county
pays to the state the difference in value.
new text end

new text begin (c) Class B land may be exchanged for United States-owned
land of greater value if the county agrees to pay the difference
in value.
new text end

Sec. 19.

Minnesota Statutes 2004, section 94.344,
subdivision 8, is amended to read:

Subd. 8.

Proposals for exchange.

By direction of the
county board new text begin , new text end the county auditor may submit a proposal for
exchange of Class B land to any land owner concerned. Any land
owner may file with the county auditor a proposal for exchange
for consideration by the county board. deleted text begin Forms for such proposals
shall be prescribed by the commissioner.
deleted text end

Sec. 20.

Minnesota Statutes 2004, section 94.344,
subdivision 10, is amended to read:

Subd. 10.

Approval; conveyance.

After approval by the
county board, every proposal for the exchange of Class B land
shall be transmitted to the commissioner in such form and with
such information as the commissioner may prescribe for
consideration by the commissioner and by the board. The county
attorney's opinion on the title, with the abstract and other
evidence of title, if any, shall accompany the proposal. If the
proposal deleted text begin be deleted text end new text begin is new text end approved by the commissioner and the board and
the title deleted text begin be deleted text end new text begin is new text end approved by the attorney general, the same shall
be certified to the commissioner of revenue, who shall execute a
deed in the name of the state conveying the land given in
exchange deleted text begin , with a certificate of unanimous approval by the board
appended, deleted text end and transmit the deed to the county auditor to be
delivered upon receipt of a deed conveying to the state the land
received in exchange, approved by the county attorney; provided,
that if any amount is due the state under the terms of the
exchange, the deed from the state shall not be executed or
delivered until such amount is paid in full and a certificate
thereof by the county auditor is filed with the commissioner of
revenue. The county auditor shall cause all deeds received by
the state in such exchanges to be recorded or registered deleted text begin , and
thereafter shall file the deeds or the certificates of
registered title in the auditor's office deleted text end . If the land received
by the county in the exchange is deleted text begin either deleted text end Class A deleted text begin or Class C deleted text end land,
the commissioner of revenue shall deliver the deed for the Class
B land to the commissioner of natural resources and following
the recording of this deed, the commissioner of natural
resources shall deliver to the county auditor a deed conveying
the Class A deleted text begin or Class C deleted text end land to the county auditor to be recorded
or registered deleted text begin , and afterwards file the deeds or the certificate
of registered title in the auditor's office deleted text end .

Sec. 21.

Minnesota Statutes 2004, section 97A.135,
subdivision 2a, is amended to read:

Subd. 2a.

Disposal of land in wildlife management areas.

(a) The commissioner may sell or exchange land in a wildlife
management area authorized by designation under section 86A.07,
subdivision 3, 97A.133, or 97A.145 if the commissioner vacates
the designation before the sale or exchange in accordance with
this subdivision. The designation may be vacated only if the
commissioner finds, after a public hearing, that the disposal of
the land is in the public interest.

(b) A sale under this subdivision is subject to sections
94.09 to 94.16. An exchange under this subdivision is subject
to sections 94.341 to deleted text begin 94.348 deleted text end new text begin 94.347 new text end .

(c) Revenue received from a sale authorized under paragraph
(a) is appropriated to the commissioner for acquisition of
replacement wildlife management lands.

(d) Land acquired by the commissioner under this
subdivision must meet the criteria in section 86A.05,
subdivision 8, and as soon as possible after the acquisition
must be designated as a wildlife management area under section
86A.07, subdivision 3, 97A.133, or 97A.145.

(e) In acquiring land under this subdivision, the
commissioner must give priority to land within the same
geographic region of the state as the land conveyed.

Sec. 22.

Minnesota Statutes 2004, section 103F.535,
subdivision 1, is amended to read:

Subdivision 1.

Reservation of marginal land and
wetlands.

(a) Marginal land and wetlands are withdrawn from
sale or exchange unless:

(1) notice of the existence of the nonforested marginal
land or wetlands, in a form prescribed by the Board of Water and
Soil Resources, is provided to prospective purchasers; and

(2) the deed contains a restrictive covenant, in a form
prescribed by the Board of Water and Soil Resources, that
precludes enrollment of the land in a state-funded program
providing compensation for conservation of marginal land or
wetlands.

(b) This section does not apply to transfers of land by the
Board of Water and Soil Resources to correct errors in legal
descriptions under section 103F.515, subdivision 8, or to
transfers by the commissioner of natural resources for:

(1) land that is currently in nonagricultural commercial
use if a restrictive covenant would interfere with the
commercial use;

(2) land in platted subdivisions;

(3) conveyances of land to correct errors in legal
descriptions under section 84.0273;

(4) exchanges of nonagricultural land with the federal
government, or exchanges of Class A, Class B, and deleted text begin Class C
deleted text end new text begin riparian new text end nonagricultural land with local units of government
under sections 94.342, 94.343, new text begin and new text end 94.344 deleted text begin , and 94.349 deleted text end ;

(5) land transferred to political subdivisions for public
purposes under sections 84.027, subdivision 10, and 94.10; and

(6) land not needed for trail purposes that is sold to
adjacent property owners and lease holders under section 85.015,
subdivision 1, paragraph (b).

(c) This section does not apply to transfers of land by the
commissioner of administration or transportation or by the
Minnesota Housing Finance Agency, or to transfers of
tax-forfeited land under chapter 282 if:

(1) the land is in platted subdivisions; or

(2) the conveyance is a transfer to correct errors in legal
descriptions.

(d) This section does not apply to transfers of land by the
commissioner of administration or by the Minnesota Housing
Finance Agency for:

(1) land that is currently in nonagricultural commercial
use if a restrictive covenant would interfere with the
commercial use; or

(2) land transferred to political subdivisions for public
purposes under sections 84.027, subdivision 10, and 94.10.

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 94.343, subdivision 6;
94.344, subdivision 6; 94.348; and 94.349, are repealed.
new text end