1.1                          A bill for an act
  1.2             relating to state land; modifying provisions for the 
  1.3             establishment of boundary lines; modifying provisions 
  1.4             relating to the sale of trust lands; authorizing the 
  1.5             commissioner of natural resources to pay certain 
  1.6             outstanding real estate taxes and assessments; 
  1.7             authorizing the commissioner of natural resources to 
  1.8             transfer improvements on state-owned land; authorizing 
  1.9             the commissioner of natural resources to sell certain 
  1.10            land; authorizing the private sale of certain land; 
  1.11            providing for disposition of certain lakeshore leased 
  1.12            lands; ratifying certain sales of certain county fee 
  1.13            lands in Lake county; amending Minnesota Statutes 
  1.14            1994, sections 84.0273; 92.06, subdivisions 1 and 4; 
  1.15            92.16, subdivision 1; and 94.10, subdivision 2; 
  1.16            proposing coding for new law in Minnesota Statutes, 
  1.17            chapters 92; and 94. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1994, section 84.0273, is 
  1.20  amended to read: 
  1.21     84.0273 [CORRECTION ESTABLISHMENT OF BOUNDARY LINES 
  1.22  RELATING TO CERTAIN STATE LANDHOLDINGS.] 
  1.23     In order to correct errors in legal descriptions resolve 
  1.24  boundary line issues affecting the ownership interests of the 
  1.25  state and adjacent landowners, the commissioner of natural 
  1.26  resources may, in the name of the state upon terms the 
  1.27  commissioner deems appropriate, convey, without monetary 
  1.28  consideration, by a boundary line agreement, quitclaim deed, or 
  1.29  other appropriate instrument in such form as the attorney 
  1.30  general approves, such rights, titles, and interests of the 
  1.31  state in state lands for such rights, titles and interests in 
  2.1   adjacent lands as are necessary for the purpose of correcting 
  2.2   legal descriptions of establishing boundaries.  A notice of the 
  2.3   proposed conveyance and a brief statement of the reason therefor 
  2.4   shall be published once in the State Register by the 
  2.5   commissioner between 15 and 30 days prior to conveyance.  The 
  2.6   provisions of this section are not intended to replace or 
  2.7   supersede laws relating to land exchange or disposal of surplus 
  2.8   state property. 
  2.9      Sec. 2.  Minnesota Statutes 1994, section 92.06, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [TERMS.] (a) The terms of payment on the 
  2.12  sale of state public lands must be as follows:  The purchaser 
  2.13  shall pay in cash at the time of sale the appraised value of all 
  2.14  timber and costs determined by the commissioner to be associated 
  2.15  with the sale including survey, appraisal, publication, deed 
  2.16  tax, filing fee, and similar costs.  At least 15 percent of the 
  2.17  purchase price of the land exclusive of timber and associated 
  2.18  costs must be paid in cash at the time of sale.  The balance of 
  2.19  the purchase price must be paid in no more than 20 equal annual 
  2.20  installments.  Payments must be made by June 1 each year 
  2.21  following the year in which the purchase was made, with interest 
  2.22  at the rate in effect at the time of sale, calculated under this 
  2.23  subdivision, on the unpaid balances.  Any installment of 
  2.24  principal or interest may be paid in advance, but part payment 
  2.25  of an installment will not be accepted.  For the purpose of 
  2.26  computing interest, any installment of principal not paid on 
  2.27  June 1 shall be credited on the following June 1.  The purchaser 
  2.28  may pay the balance due on a sale within 30 days of the sale 
  2.29  with no interest due. 
  2.30     (b) Interest on unpaid balances must be computed as annual 
  2.31  simple interest.  The rate of interest must be based on average 
  2.32  effective interest rates on mortgage loans as provided in 
  2.33  paragraph (c). 
  2.34     (c) On or before December 31 of each year, the commissioner 
  2.35  of natural resources shall determine the rate from the average 
  2.36  effective interest rate on loans closed using the office of 
  3.1   thrift supervision series, formerly the federal home loan bank 
  3.2   board series, or its successor agency, for the most recent 
  3.3   calendar month, reported on a monthly basis in the latest 
  3.4   statistical release of the board of governors of the federal 
  3.5   reserve system.  This yield, rounded to the nearest quarter of 
  3.6   one percent, is the annual interest rate for sales of state land 
  3.7   during the succeeding calendar year. 
  3.8      (d) For state land sales in calendar year 1993 after July 
  3.9   1, 1993, the rate is eight percent, which is the September 1992 
  3.10  average from the office of thrift supervision series, rounded to 
  3.11  the nearest quarter of one percent. 
  3.12     Sec. 3.  Minnesota Statutes 1994, section 92.06, 
  3.13  subdivision 4, is amended to read: 
  3.14     Subd. 4.  [IMPROVEMENTS, WHEN PAYMENT NOT NECESSARY.] If a 
  3.15  person has made improvements to the land and if:  (1) the 
  3.16  commissioner believes that person settled the land in good faith 
  3.17  as homestead land under the laws of the United States before it 
  3.18  was certified to the state, or if (2) the improvements were 
  3.19  lawfully made by that person as a lessee of the state, or (3) 
  3.20  the commissioner determines, based on clear and convincing 
  3.21  evidence provided by the person, that the improvements were made 
  3.22  by the person as an inadvertent trespasser, then the value of 
  3.23  the improvements must be separately appraised and, if the 
  3.24  settler or, lessee, or inadvertent trespasser purchases the 
  3.25  land, the settler or, lessee, or inadvertent trespasser is not 
  3.26  required to pay for the improvements.  If another person 
  3.27  purchases the land, that person must pay the owner of the 
  3.28  improvements, in addition to all other required payments, the 
  3.29  appraised amount for the improvements.  Payment for improvements 
  3.30  must be made within 15 days of the auction sale, either in cash 
  3.31  or upon terms and conditions agreeable to the owner of the 
  3.32  improvements.  If payment for improvements is not made in cash, 
  3.33  and if there is no agreement between the parties within 15 days 
  3.34  of the auction sale, the commissioner may: 
  3.35     (1) sell the property to the second highest qualified 
  3.36  bidder if that bidder submitted to the commissioner's 
  4.1   representative, at the auction sale, a written request to buy 
  4.2   the property at a specified price; or 
  4.3      (2) void the sale and reoffer the property at a subsequent 
  4.4   sale. 
  4.5      This subdivision does not apply unless the owner of the 
  4.6   improvements makes a verified application to the commissioner 
  4.7   showing entitlement to the improvements before the first state 
  4.8   public sale at which the land is offered for sale.  The 
  4.9   applicant must appear at the sale and offer to purchase the land 
  4.10  for at least its appraised value including all timber on it, and 
  4.11  make the purchase if no higher bid is received.  Actions or 
  4.12  other proceedings involving the land in question begun before 
  4.13  the sale must have been completed. 
  4.14     Sec. 4.  Minnesota Statutes 1994, section 92.16, 
  4.15  subdivision 1, is amended to read: 
  4.16     Subdivision 1.  [CONTENTS; DEFAULT, RESALE.] At the time of 
  4.17  the sale the commissioner shall execute, acknowledge, and 
  4.18  deliver to the purchaser a certificate of sale, numbered and 
  4.19  made assignable, certifying the description of the land sold, 
  4.20  its quantity, the price per acre, the consideration paid and to 
  4.21  be paid, and the time and terms of payment.  A certificate must 
  4.22  not be delivered until the sum required by law to be paid at the 
  4.23  time of the sale is paid.  The sum includes costs determined by 
  4.24  the commissioner to be associated with the sale such as survey, 
  4.25  appraisal, publication, deed tax, filing fee, and similar 
  4.26  costs.  If the purchaser fails to pay the sum, the commissioner 
  4.27  may immediately reoffer the land for sale, but a bid may not be 
  4.28  accepted from the person failing to pay the original offer.  If 
  4.29  the purchaser pays in full at the time of sale, the commissioner 
  4.30  is not required to issue a certificate of sale. 
  4.31     Sec. 5.  [92.80] [PAYMENT OF TAXES AND ASSESSMENTS.] 
  4.32     Subdivision 1.  [CANCELLATION OF SALES CONTRACT.] If the 
  4.33  state acquires an interest in real property prior to the 
  4.34  cancellation of a state sales contract or upon completion of the 
  4.35  cancellation process by advertisement or court order, the state 
  4.36  must make provision to pay all taxes, interests, costs, 
  5.1   penalties, and assessments.  The commissioner of natural 
  5.2   resources must request the contract vendee to make a good faith 
  5.3   attempt to pay the debt.  If the commissioner determines that 
  5.4   the vendee is unwilling or unable to pay the debt, the 
  5.5   commissioner may pay the debt and seek redress against the 
  5.6   vendee. 
  5.7      Subd. 2.  [VOLUNTARY AND INVOLUNTARY REVERSIONS.] (a) If a 
  5.8   grantee on a state sales contract or state deed requests the 
  5.9   state to exercise its reversionary interest in real property, 
  5.10  the grantee must pay all real estate taxes, costs, interest, 
  5.11  penalties, and assessments on the property prior to reversion. 
  5.12     (b) If a grantee on a state sales contract or state deed 
  5.13  breaches the contractual terms of the contract or deed, the 
  5.14  commissioner of natural resources must request the grantee to 
  5.15  make a good faith attempt to pay all real estate taxes, costs, 
  5.16  interest, penalties, and assessments on the property prior to 
  5.17  reversion.  If the commissioner determines that the grantee is 
  5.18  unwilling or unable to pay the debt, the commissioner may pay 
  5.19  the debt and seek redress against the grantee. 
  5.20     Sec. 6.  Minnesota Statutes 1994, section 94.10, 
  5.21  subdivision 2, is amended to read: 
  5.22     Subd. 2.  (a) Lands certified as surplus by the head of a 
  5.23  department or agency other than the department of natural 
  5.24  resources shall be offered for public sale by the commissioner 
  5.25  of administration as provided in this paragraph.  After 
  5.26  complying with subdivision 1 and before any public sale of 
  5.27  surplus state-owned land is made, the commissioner of 
  5.28  administration shall publish a notice thereof at least once in 
  5.29  each week for four successive weeks in a legal newspaper and 
  5.30  also in a newspaper of general distribution in the city or 
  5.31  county in which the real property to be sold is situated, which 
  5.32  notice shall specify the time and place at which the sale will 
  5.33  commence, a general description of the lots or tracts to be 
  5.34  offered, and a general statement of the terms of sale.  Each 
  5.35  tract or lot shall be sold separately and shall be sold for not 
  5.36  less than the appraised value thereof.  Parcels remaining unsold 
  6.1   after the offering may be sold to anyone agreeing to pay the 
  6.2   appraised value thereof.  The sale shall continue until all 
  6.3   parcels are sold or until the commissioner orders a reappraisal 
  6.4   or withdraws the remaining parcels from sale.  
  6.5      (b) Lands certified as surplus by the commissioner of 
  6.6   natural resources shall be offered for public sale by the 
  6.7   commissioner of natural resources in the manner provided in 
  6.8   paragraph (a) for sales by the commissioner of administration. 
  6.9      (c) Except as provided in section 94.11, the cost of any 
  6.10  survey or appraisal as provided in subdivision 1 shall be added 
  6.11  to and made a part of the appraised value of the lands to be 
  6.12  sold, whether to any political subdivision of the state or to a 
  6.13  private purchaser as provided in this subdivision.  
  6.14     Sec. 7.  [94.55] [TRANSFER OF STATE-OWNED IMPROVEMENTS.] 
  6.15     The commissioner may sell or transfer an improvement 
  6.16  located on state-owned lands, the compensation for which shall 
  6.17  be determined by the commissioner.  The transfer shall be 
  6.18  accomplished by a bill of sale, describing the improvement 
  6.19  transferred and the terms and conditions of the transfer.  
  6.20  Proceeds resulting from the transfer must be deposited in the 
  6.21  state treasury and credited to the land acquisition account 
  6.22  established in section 94.165. 
  6.23     Sec. 8.  [SALE OF STATE FOREST LAND.] 
  6.24     (a) Notwithstanding Minnesota Statutes, section 89.01, 
  6.25  subdivision 5, the commissioner of natural resources may sell 
  6.26  school trust and acquired state land in the Richard J. Dorer 
  6.27  Memorial Hardwood State Forest described in this section in the 
  6.28  manner for sale of trust fund and acquired lands under Minnesota 
  6.29  Statutes, chapter 92 or 94. 
  6.30     (b) The land that may be sold is described as follows: 
  6.31     (1) Township 110 N, Range 12 W, Section 28, the SE 1/4 of 
  6.32  the SW 1/4 containing 40 acres more or less and the SW 1/4 of 
  6.33  the SE 1/4 containing 40 acres more or less, in Wabasha County; 
  6.34     (2) Township 107 N, Range 8 W, Section 16, the NE 1/4 of 
  6.35  the SE 1/4 containing 40 acres more or less, the SW 1/4 of the 
  6.36  SE 1/4 containing 40 acres more or less, in Winona County; 
  7.1      (3) Township 106 N, Range 5 W, Section 30, the SE 1/4 of 
  7.2   the SE 1/4 containing 40 acres more or less, in Winona County; 
  7.3      (4) Township 106 N, Range 6 W, Section 36, the NE 1/4 of 
  7.4   the SE 1/4 containing 40 acres more or less, in Winona County; 
  7.5   and 
  7.6      (5) Township 104 N, Range 6 W, Section 6, the SW 1/4 of the 
  7.7   NW 1/4 containing 38.28 acres more or less, in Houston County. 
  7.8      Sec. 9.  [SALE OF TRUST FUND LAND IN HUBBARD COUNTY.] 
  7.9      (a) Notwithstanding Minnesota Statutes, section 92.45, the 
  7.10  commissioner of natural resources may sell the state trust fund 
  7.11  land bordering on public waters described in paragraph (c) in 
  7.12  accordance with the procedures in Minnesota Statutes, chapter 92.
  7.13     (b) The conveyance shall be in a form approved by the 
  7.14  attorney general. 
  7.15     (c) The land that may be sold is located in Hubbard County 
  7.16  and is described as:  that part of the Southeast Quarter of the 
  7.17  Southeast Quarter of Section 8, Township 144 North, Range 32 
  7.18  West, Hubbard County, Minnesota, lying easterly of the Necktie 
  7.19  River and northerly of the centerline of county state-aid 
  7.20  highway No. 16, containing up to 5 acres, more or less. 
  7.21     (d) The sale will result in the elimination of a trespass 
  7.22  situation with the adjacent landowner who built a house on the 
  7.23  property in 1989. 
  7.24     Sec. 10.  [SALE OF STATE LAND IN OTTER TAIL COUNTY.] 
  7.25     (a) Notwithstanding the public sale requirements of 
  7.26  Minnesota Statutes, sections 94.09 and 94.10, the commissioner 
  7.27  of natural resources may sell by private sale, for a 
  7.28  consideration not less than its value, the land described in 
  7.29  paragraph (c), under the remaining provisions of Minnesota 
  7.30  Statutes, chapter 94. 
  7.31     (b) The conveyance shall be in a form approved by the 
  7.32  attorney general. 
  7.33     (c) The land that may be sold is located in Otter Tail 
  7.34  County and is described as:  all that part of the Southwest 
  7.35  Quarter of the Southeast Quarter of Section 22, Township 137, 
  7.36  Range 42, Otter Tail County, Minnesota described as follows:  
  8.1   beginning at the South Quarter corner of said Section 22; thence 
  8.2   on an assumed bearing of North 0 degrees 31 minutes 36 seconds 
  8.3   East along the west line of said Southwest Quarter of the 
  8.4   Southeast Quarter, a distance of 442.58 feet; thence South 19 
  8.5   degrees 29 minutes 47 seconds East a distance of 108.74 feet; 
  8.6   thence southeasterly on a tangential curve, concave to the 
  8.7   northeast, having a radius of 498.22 feet and a central angle of 
  8.8   69 degrees 43 minutes 29 seconds, for an arc distance of 606.30 
  8.9   feet to the easterly line of a tract of land described in Book 
  8.10  392 of Deeds, page 509, Office of the Otter Tail County 
  8.11  Recorder; thence South 10 degrees 03 minutes 49 seconds West 
  8.12  along said easterly line, a distance of 14.18 feet to the 
  8.13  southeast corner of said tract of land described in Book 392 of 
  8.14  Deeds, page 509; thence North 89 degrees 20 minutes 11 seconds 
  8.15  West along the south line of said Section 22, a distance of 
  8.16  500.80 feet to the point of beginning, containing 1.44 acres 
  8.17  more or less, subject to easements and reservations of public 
  8.18  record, if any.  The grantor, for itself, its successors and 
  8.19  assigns, reserves an easement for use and maintenance of the 
  8.20  existing ditch over and across the above described parcel, being 
  8.21  a strip of land 33 feet in width lying 16.5 feet on each side of 
  8.22  the centerline of the existing ditch running in a southwesterly 
  8.23  direction from the township road to the west line of said 
  8.24  Southwest Quarter of the Southeast Quarter. 
  8.25     (d) The commissioner has determined that the land is no 
  8.26  longer useful for any natural resource purpose, or any other 
  8.27  public purpose, and intends to sell this unneeded land to the 
  8.28  adjoining landowner to resolve an inadvertent trespass. 
  8.29     Sec. 11.  [SALE OF STATE WILDLIFE LAND IN WASHINGTON 
  8.30  COUNTY.] 
  8.31     (a) Notwithstanding Minnesota Statutes, sections 94.09 and 
  8.32  94.10, and the public hearing requirement in Minnesota Statutes, 
  8.33  section 97A.135, subdivision 2a, the commissioner of natural 
  8.34  resources may sell land in a wildlife management area, described 
  8.35  in this section, by private sale for a consideration not less 
  8.36  than the appraised value, in accordance with the remaining 
  9.1   provisions of Minnesota Statutes, chapter 94, and section 
  9.2   97A.135. 
  9.3      (b) The conveyance shall be in a form approved by the 
  9.4   attorney general. 
  9.5      (c) The deed must contain a restrictive covenant that 
  9.6   prohibits the placement or construction of additional buildings 
  9.7   or structures, including corrals and animal shelters or pens, on 
  9.8   the property conveyed in this section.  The cost for 
  9.9   constructing and maintaining any fencing on the property to be 
  9.10  conveyed shall be the sole responsibility of the purchaser. 
  9.11     (d) The land that may be sold is in the Hardwood Creek 
  9.12  wildlife management area in Washington County and is described 
  9.13  as:  the South 487 feet of the North 520 feet of the West 770 
  9.14  feet of the Northwest Quarter of the Southeast Quarter (NW 1/4 
  9.15  SE 1/4), Section Twenty-seven (27), Township Thirty-two (32) 
  9.16  North, Range Twenty-one (21) West EXCEPT the North 440 feet of 
  9.17  the West 650 feet of said NW 1/4 SE 1/4. 
  9.18     (e) The conveyance in this section will provide the 
  9.19  adjacent landowner with a buffer between the landowner's 
  9.20  buildings and public hunting activities on the adjacent wildlife 
  9.21  area that surrounds the site and eliminate a problem with a 
  9.22  portion of the landowner's barn that lies on the existing state 
  9.23  property. 
  9.24     Sec. 12.  [SALE OF STATE LAND IN CROW WING COUNTY.] 
  9.25     (a) Notwithstanding Minnesota Statutes, section 92.45, the 
  9.26  commissioner of natural resources may sell acquired state land 
  9.27  bordering public waters described in this section in accordance 
  9.28  with Minnesota Statutes, section 85.015, subdivision 1, 
  9.29  paragraph (b), and chapter 94. 
  9.30     (b) The land that may be sold is located in Crow Wing 
  9.31  County and is described as follows: 
  9.32     (1) Lot 3, Block 5, Plat of Paul Bunyan Trail, Nisswa 
  9.33  Addition; and 
  9.34     (2) Lot 5, Block 5, Plat of Paul Bunyan Trail, Nisswa 
  9.35  Addition. 
  9.36     Sec. 13.  [HORSESHOE BAY LEASES.] 
 10.1      Subdivision 1.  [LESSEE OPTIONS.] (a) If requested before 
 10.2   January 1, 1998, by a lessee of lands leased under Minnesota 
 10.3   Statutes, section 92.46, that are located in section 16, 
 10.4   township 62N, range 4E, Cook county, the commissioner of natural 
 10.5   resources shall, at the lessee's option: 
 10.6      (1) pay to the lessee the appraised value of improvements 
 10.7   on the land and terminate the lease as of the date of payment; 
 10.8   or 
 10.9      (2) continue the lease for the life of the lessee, or for a 
 10.10  shorter term specified by the lessee, and when the lease term 
 10.11  expires, pay to the lessee or the lessee's heirs the appraised 
 10.12  value of improvements on the land. 
 10.13     (b) Any lease rate increase for a lease described in 
 10.14  paragraph (a) may only be applied prospectively. 
 10.15     (c) The commissioner may use money appropriated from the 
 10.16  land acquisition account under Minnesota Statutes, section 
 10.17  94.165, for payments under paragraph (a), clause (1). 
 10.18     Sec. 14.  [LAKE COUNTY LAND SALES RATIFIED.] 
 10.19     (a) Notwithstanding Minnesota Statutes, section 373.01, the 
 10.20  conveyances by Lake county, Minnesota, of the following county 
 10.21  fee lands are hereby ratified: 
 10.22     (1) one parcel of land sold October 29, 1993, by Lake 
 10.23  county, Minnesota, to Darrel and Harriet Kempffer, being a 
 10.24  five-acre county fee parcel of land described as the North 
 10.25  One-half of the West One-half (N 1/2 of W 1/2) of the West 
 10.26  One-half (W 1/2) of the Northwest Quarter of the Northwest 
 10.27  Quarter (NW 1/4 of NW 1/4), Section Two (2), Township Fifty-two 
 10.28  (52) North, Range Eleven (11) West, Lake county, Minnesota, 
 10.29  constituting five acres; 
 10.30     (2) four parcels of land sold July 18, 1994, by Lake 
 10.31  county, Minnesota, described as: 
 10.32     (i) Lot One (1), Five Mile Hill Plat, Lake county, 
 10.33  Minnesota, sold to Diane Cullen; 
 10.34     (ii) Lot Four (4), Five Mile Hill Plat, Lake county, 
 10.35  Minnesota, sold to Thomas Muehlburger; 
 10.36     (iii) Lot Seven (7), Five Mile Hill Plat, Lake county, 
 11.1   Minnesota, sold to Thomas Muehlburger; 
 11.2      (iv) Lot Six (6), Five Mile Hill Plat, Lake county, 
 11.3   Minnesota, sold to John McClellan; 
 11.4      (3) four parcels of land sold October 7, 1994, by Lake 
 11.5   county, Knife River, Minnesota, described as: 
 11.6      (i) Lot One (1) Granite Point Plat, Lake county, Minnesota, 
 11.7   sold to Tim Stoddart; 
 11.8      (ii) Lot Two (2) Granite Point Plat, Lake county, 
 11.9   Minnesota, sold to Tim Stoddart; 
 11.10     (iii) Lot Three (3), Granite Point Plat, Lake county, 
 11.11  Minnesota, sold to Lee Jensen; 
 11.12     (iv) Lot Four (4), Granite Point Plat, Lake county, 
 11.13  Minnesota, sold to Lee Jensen; and 
 11.14     (4) a parcel of land sold July 21, 1995, by Lake county, 
 11.15  Minnesota, described as: 
 11.16     The East Two Hundred Eight and 7/10 (e. 208.7) feet of the 
 11.17  West Eight Hundred Thirty-four and 8/10 (W.834.8) of the South 
 11.18  Two Hundred Forty-two (S.242) feet of the South One-half (S 1/2) 
 11.19  of the Northwest Quarter of the Southwest Quarter (NW 1/4 of SW 
 11.20  1/4), Section Five (5), Township Fifty-nine (59) North, Range 
 11.21  Eight (8) West, Stony River Township, Lake county, sold to 
 11.22  Dorothy Johnson. 
 11.23     (b) Through an error, the sales of the lands described in 
 11.24  paragraph (a) were conducted using the procedure for public 
 11.25  sales of tax-forfeited lands rather than the applicable public 
 11.26  sale procedure in Minnesota Statutes, section 373.01. 
 11.27     Sec. 15.  [EFFECTIVE DATE.] 
 11.28     Sections 8 to 14 are effective the day following final 
 11.29  enactment.