1.1                          A bill for an act 
  1.2             relating to natural resources; modifying restrictions 
  1.3             for certain state leases on Horseshoe Bay in Cook 
  1.4             County; amending Laws 1997, chapter 216, section 151. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Laws 1997, chapter 216, section 151, is amended 
  1.7   to read: 
  1.8      Sec. 151.  [HORSESHOE BAY LEASES.] 
  1.9      Subdivision 1.  [DEFINITIONS.] (a) "Lessee" means a lessee 
  1.10  of lands leased under Minnesota Statutes, section 92.46, that 
  1.11  are located in Section 16, Township 62 North, Range 4 East, Cook 
  1.12  County, of record with the commissioner of natural resources as 
  1.13  of May 14, 1993. 
  1.14     (b) "New lease" means a lease issued after the effective 
  1.15  date of this act from May 31, 1997, to May 31, 2004, under the 
  1.16  terms and conditions specified in Minnesota Statutes, section 
  1.17  92.46, subdivisions 1, 1a, and 3, except that the lease may be 
  1.18  for a life term and is not assignable or transferable and may 
  1.19  not be amended to include additional lessees. 
  1.20     (c) "Amended lease" means a lease issued after May 31, 
  1.21  2004, under the terms and conditions specified in Minnesota 
  1.22  Statutes, section 92.46, subdivisions 1, 1a, and 3, except that: 
  1.23     (1) the term of the lease shall be for the lifetime of the 
  1.24  party being issued the amended lease and, if transferred, for 
  1.25  the lifetime of the party to whom the lease is transferred; 
  2.1      (2) the lease shall provide that the lease may be 
  2.2   transferred only once and the transfer must be to a person 
  2.3   within the second degree of kindred according to civil law; 
  2.4      (3) the commissioner shall limit the number of transferees 
  2.5   per lease to no more than two persons who have attained legal 
  2.6   age; and 
  2.7      (4) the lease rates shall be as provided in Laws 2003, 
  2.8   First Special Session chapter 9, article 1, section 52. 
  2.9      Subd. 2.  [OPTIONS FOR LESSEES.] (a) If requested in 
  2.10  writing by a lessee before January 1, 1998, the commissioner 
  2.11  shall, at the lessee's option: 
  2.12     (1) pay to the lessee the appraised value of the lessee's 
  2.13  improvements on the land and terminate the existing lease as of 
  2.14  the date of payment for improvements; or 
  2.15     (2) issue a new lease for the life of the lessee that 
  2.16  provides that when the lease term expires, the commissioner 
  2.17  shall pay to the lessee or a beneficiary that must be designated 
  2.18  in writing by the lessee the appraised value of the lessee's 
  2.19  improvements on the land.  A lessee who elects this option may 
  2.20  elect to terminate the lease at any time during the term of the 
  2.21  lease in exchange for payment by the commissioner for the 
  2.22  appraised value of the lessee's improvements on the land. 
  2.23     (b) If the commissioner has not received written notice of 
  2.24  a lessee's election under paragraph (a) by January 1, 1998, the 
  2.25  commissioner may proceed under paragraph (a), clause (1). 
  2.26     (c) If requested in writing by the lessee before January 1, 
  2.27  2005, the commissioner shall issue an amended lease to a lessee 
  2.28  who holds a new lease issued under paragraph (a).  When the 
  2.29  amended lease term expires, the commissioner shall pay to the 
  2.30  lessee, the transferee, or a beneficiary that must be designated 
  2.31  in writing by the lessee or the transferee, the appraised value 
  2.32  of the lessee's or transferee's improvements on the land.  A 
  2.33  lessee or transferee may elect to terminate the lease at any 
  2.34  time during the term of the lease in exchange for payment by the 
  2.35  commissioner for the appraised value of the lessee's or 
  2.36  transferee's improvements on the land. 
  3.1      (d) After the effective date of this section May 31, 1997, 
  3.2   no lessee under paragraph (a), clause (2), or (c), shall 
  3.3   construct or remodel, other than necessary for maintenance and 
  3.4   upkeep, a cabin or other structure during the lease. 
  3.5      (d) (e) The commissioner may use money appropriated from 
  3.6   the land acquisition account under Minnesota Statutes, section 
  3.7   94.165, for payments under paragraph (a) or (c). 
  3.8      (e) (f) Notwithstanding Minnesota Statutes, section 92.46, 
  3.9   subdivision 1a, the commissioner may elect whether to amend the 
  3.10  leases in paragraph (a) or (c) to expand lot size to conform 
  3.11  with current shoreline standards. 
  3.12     Sec. 2.  [EFFECTIVE DATE.] 
  3.13     Section 1 is effective June 1, 2004.