HF 5246

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/17/2024 04:01pm

A bill for an act
relating to state finance; establishing a tax-forfeited lands settlement account;
transferring money; requiring reports; appropriating money.

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

Section 1. new text begin TAX-FORFEITED LANDS SETTLEMENT; APPROPRIATION.
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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.
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new text begin (d) "Participating county" means a county that meets the requirements of subdivision 2.
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new text begin (e) "Settlement" means the agreement reached on February 28, 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 Requirements of participating counties. new text end

new text begin If a county elects to participate in
the settlement, or is deemed to elect to participate in the settlement under subdivision 4, the
county must agree:
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new text begin (1) to provide the claims administrator administering the settlement with all public
property tax records reasonably necessary to effectuate the settlement agreement by August
1, 2024;
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new text begin (2) 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 are classified as conservation lands,
those that are part of a rehabilitation program, 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 (3) that for any sale made under clause (2):
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new text begin (i) the county will conduct an auction of the property, either in person or online; list the
property through a private broker; or, if the property meets the criteria in Minnesota Statutes,
section 282.01, subdivision 7a, sell the property pursuant to that subdivision;
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new text begin (ii) the sale will be for no less than its appraised value;
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new text begin (iii) the sale will be for cash only and not on terms; and
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new text begin (iv) notwithstanding any provision of Minnesota Statutes, chapter 282, to the contrary,
for any property sold on or after the effective date of this section, 75 percent of the proceeds
of any sale on or before June 30, 2027, and 85 percent of the proceeds of any sale on or
after July 1, 2027, and on or before June 30, 2029, will be remitted to the commissioner for
deposit in the general fund and the remaining proceeds will be retained by the county to be
used for any permissible purpose; and
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new text begin (4) that any properties subject to sale under clause (2) that remain unsold on June 30,
2029, 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 Subd. 3. new text end

new text begin Receipts. new text end

new text begin The commissioner must deposit into the general fund any proceeds
remitted to the commissioner by participating counties under subdivision 2, clause (3), item
(iv), or any amounts returned by the claims administrator.
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new text begin Subd. 4. new text end

new text begin Deemed election to become participating county; nonparticipating
counties. new text end

new text begin A county that does not affirmatively notify the claims administrator by August
1, 2024, in writing, that it is not a participating county, will be deemed to have elected to
become a participating county. 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.
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new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin $109,000,000 in fiscal year 2024 is appropriated from the
general fund to the commissioner of management and budget to make payments to the
claims administrator under the terms of the settlement. This is a onetime appropriation and
is available until June 30, 2026. The claims administrator must return any money that remains
unspent on June 30, 2026.
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new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin (a) By December 31, 2024, and each December 31 thereafter, each
participating county must report to the commissioner of management and budget the
following information pertaining to parcels that forfeited between the applicable start date
and December 31, 2023:
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new text begin (1) the date on which each parcel forfeited;
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new text begin (2) a brief description of the good faith efforts made to list and sell properties under this
section; and
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new text begin (3) if a parcel was sold, the purchase price and the amount remitted to the commissioner
by each participating county under subdivision 2, clause (3), item (iv).
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new text begin (b) By February 1, 2025, and each February 1 thereafter, the commissioner of
management and budget must compile the information reported under paragraph (a) and
issue a report listing the reported information by county to the legislative committees with
jurisdiction over finance, environment, and taxes.
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new text begin (c) This subdivision expires February 2, 2030.
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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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