1.1                          A bill for an act 
  1.2             relating to natural resources; modifying provisions 
  1.3             for the sale and disposition of surplus state lands; 
  1.4             modifying certain state land management provisions; 
  1.5             adding to state forests and wildlife management areas; 
  1.6             appropriating money; amending Minnesota Statutes 2002, 
  1.7             sections 15.054; 84.0272, by adding subdivisions; 
  1.8             85.015, subdivision 1; 86A.05, subdivision 14; 89.01, 
  1.9             by adding a subdivision; 92.02; 92.03; 92.04; 92.06, 
  1.10            subdivisions 1, 2, 4, 5, by adding a subdivision; 
  1.11            92.08; 92.10, subdivision 2; 92.12, subdivisions 1, 2, 
  1.12            4, 5; 92.121; 92.14, subdivision 1; 92.16, by adding a 
  1.13            subdivision; 92.28; 92.29; 92.321, subdivision 1; 
  1.14            94.09, subdivisions 1, 3; 94.10; 94.11; 94.12; 94.13; 
  1.15            94.16, subdivision 2; 282.01, subdivision 3; Minnesota 
  1.16            Statutes 2003 Supplement, sections 525.161; 525.841; 
  1.17            proposing coding for new law in Minnesota Statutes, 
  1.18            chapters 16B; 92; repealing Minnesota Statutes 2002, 
  1.19            sections 92.09; 92.11; 94.09, subdivisions 2, 4, 5, 6. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21                             ARTICLE 1
  1.22               SALE AND DISPOSITION OF SURPLUS LANDS
  1.23     Section 1.  Minnesota Statutes 2002, section 15.054, is 
  1.24  amended to read: 
  1.25     15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM 
  1.26  GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.] 
  1.27     No officer or employee of the state or any of its political 
  1.28  subdivisions shall sell or procure for sale or possess or 
  1.29  control for sale to any other officer or employee of the state 
  1.30  or subdivision, as appropriate, any property or materials owned 
  1.31  by the state or subdivision except pursuant to conditions 
  1.32  provided in this section.  Property or materials owned by the 
  2.1   state or a subdivision, except real property, and not needed for 
  2.2   public purposes, may be sold to an employee of the state or 
  2.3   subdivision after reasonable public notice at a public auction 
  2.4   or by sealed response, if the employee is not directly involved 
  2.5   in the auction or process pertaining to the administration and 
  2.6   collection of sealed responses.  Requirements for reasonable 
  2.7   public notice may be prescribed by other law or ordinance so 
  2.8   long as at least one week's published notice is specified.  An 
  2.9   employee of the state or a political subdivision may purchase no 
  2.10  more than one motor vehicle from the state in any 12-month 
  2.11  period.  A person violating the provisions of this section is 
  2.12  guilty of a misdemeanor.  This section shall not apply to the 
  2.13  sale of property or materials acquired or produced by the state 
  2.14  or subdivision for sale to the general public in the ordinary 
  2.15  course of business.  Nothing in this section shall prohibit an 
  2.16  employee of the state or a political subdivision from selling or 
  2.17  possessing for sale public property if the sale or possession 
  2.18  for sale is in the ordinary course of business or normal course 
  2.19  of the employee's duties. 
  2.20     Sec. 2.  [16B.281] [SALE AND DISPOSITION OF SURPLUS 
  2.21  STATE-OWNED LAND.] 
  2.22     Subdivision 1.  [APPLICABILITY.] All tracts or lots of real 
  2.23  property belonging to the state or that may hereafter accrue to 
  2.24  the state, including tracts or lots that have escheated to the 
  2.25  state, may be disposed of according to sections 16B.281 to 
  2.26  16B.287.  Sections 16B.281 to 16B.287 do not apply to school or 
  2.27  other trust fund lands belonging to the state, or that may 
  2.28  hereafter accrue to the state, under and by virtue of any act of 
  2.29  Congress or to any other state-owned lands the sale or 
  2.30  disposition of which is provided for under sections 94.09 to 
  2.31  94.16 or other law. 
  2.32     Subd. 2.  [CERTIFICATION REQUIRED.] On or before July 1 of 
  2.33  each year, the head of each department or agency having control 
  2.34  and supervision over any state-owned land, the sale or 
  2.35  disposition of which is not otherwise provided for by law, shall 
  2.36  certify in writing to the commissioner whether there is any 
  3.1   state-owned land under control and supervision of that 
  3.2   department or agency that is no longer needed.  If the 
  3.3   certification discloses lands no longer needed for a department 
  3.4   or agency, the head of the department or agency shall include in 
  3.5   the certification a description of the lands and the reasons why 
  3.6   the lands are no longer needed. 
  3.7      Subd. 3.  [NOTICE TO AGENCIES; DETERMINATION OF 
  3.8   SURPLUS.] On or before October 1 of each year, the commissioner 
  3.9   shall review the certifications of heads of each department or 
  3.10  agency provided for in this section.  The commissioner shall 
  3.11  send written notice to all state departments, agencies, and the 
  3.12  University of Minnesota describing any lands or tracts that may 
  3.13  be declared surplus.  If a department or agency or the 
  3.14  University of Minnesota desires custody of the lands or tracts, 
  3.15  it shall submit a written request to the commissioner, no later 
  3.16  than four calendar weeks after mailing of the notice, setting 
  3.17  forth in detail its reasons for desiring to acquire and its 
  3.18  intended use of the land or tract.  The commissioner shall then 
  3.19  determine whether any of the lands described in the 
  3.20  certifications of the heads of the departments or agencies 
  3.21  should be declared surplus and offered for sale or otherwise 
  3.22  disposed of by transferring custodial control to other 
  3.23  requesting state departments or agencies or to the Board of 
  3.24  Regents of the University of Minnesota for educational purposes, 
  3.25  provided however that transfer to the Board of Regents shall not 
  3.26  be determinative of tax exemption or immunity.  If the 
  3.27  commissioner determines that any of the lands are no longer 
  3.28  needed for state purposes, the commissioner shall make findings 
  3.29  of fact, describe the lands, declare the lands to be surplus 
  3.30  state land, state the reasons for the sale or disposition of the 
  3.31  lands, and notify the Executive Council of the determination. 
  3.32     Subd. 4.  [EXECUTIVE COUNCIL APPROVAL.] Within 60 days 
  3.33  after the receipt of the notification from the commissioner, the 
  3.34  Executive Council shall approve or disapprove the commissioner's 
  3.35  determinations.  If the determinations are approved, the lands 
  3.36  shall be offered for sale or otherwise disposed of as provided 
  4.1   for in sections 16B.281 to 16B.287.  If the Executive Council 
  4.2   disapproves the determinations, the same determinations 
  4.3   regarding the surplus lands may not be resubmitted to the 
  4.4   Executive Council until at least six months after the date of 
  4.5   the disapproval. 
  4.6      Subd. 5.  [REPORT REQUIRED.] On or before November 15 of 
  4.7   each even-numbered year, the commissioner shall report to the 
  4.8   governor and the legislature the following information for the 
  4.9   two-year period immediately preceding: 
  4.10     (1) the lands that state departments and agencies have 
  4.11  certified as no longer needed; 
  4.12     (2) the lands that have been determined to be no longer 
  4.13  needed for state purposes, regarding which the Executive Council 
  4.14  has been formally notified; and 
  4.15     (3) the lands that have been publicly sold. 
  4.16     Subd. 6.  [MAINTENANCE OF LAND BEFORE SALE.] The state 
  4.17  department or agency holding custodial control shall maintain 
  4.18  the state-owned lands until the lands are sold or otherwise 
  4.19  disposed of as provided for in sections 16B.281 to 16B.287. 
  4.20     Sec. 3.  [16B.282] [SURVEYS, APPRAISALS, AND SALE.] 
  4.21     Subdivision 1.  [APPRAISAL; NOTICE AND OFFER TO PUBLIC 
  4.22  BODIES.] (a) Before offering any surplus state-owned lands for 
  4.23  sale, the commissioner may survey the lands and, if the value of 
  4.24  the lands is estimated to be $40,000 or less, may have the lands 
  4.25  appraised.  The commissioner shall have the lands appraised if 
  4.26  the estimated value is in excess of $40,000.  
  4.27     (b) The appraiser shall, before entering upon the duties of 
  4.28  the office, take and subscribe an oath that the appraiser will 
  4.29  faithfully and impartially discharge the duties of appraiser 
  4.30  according to the best of the appraiser's ability and that the 
  4.31  appraiser is not interested, directly or indirectly, in any of 
  4.32  the lands to be appraised or the timber or improvements on the 
  4.33  lands or in the purchase of the lands, timber, or improvements 
  4.34  and has entered into no agreement or combination to purchase any 
  4.35  of the lands, timber, or improvements.  The oath shall be 
  4.36  attached to the appraisal report.  
  5.1      (c) Before offering surplus state-owned lands for public 
  5.2   sale, the lands shall first be offered to the city, county, 
  5.3   town, school district, or other public body corporate or politic 
  5.4   in which the lands are situated for public purposes and the 
  5.5   lands may be sold for public purposes for not less than the 
  5.6   appraised value of the lands.  To determine whether a public 
  5.7   body desires to purchase the surplus land, the commissioner 
  5.8   shall give a written notice to the governing body of each 
  5.9   political subdivision whose jurisdictional boundaries include or 
  5.10  are adjacent to the surplus land.  If a public body desires to 
  5.11  purchase the surplus land, it shall submit a written offer to 
  5.12  the commissioner no later than two weeks after receipt of notice 
  5.13  setting forth in detail its reasons for desiring to acquire and 
  5.14  its intended use of the land.  In the event that more than one 
  5.15  public body tenders an offer, the commissioner shall determine 
  5.16  which party shall receive the property and shall submit written 
  5.17  findings regarding the decision.  If lands are offered for sale 
  5.18  for public purposes and if a public body notifies the 
  5.19  commissioner of its desire to acquire the lands, the public body 
  5.20  may have up to two years from the date of the accepted offer to 
  5.21  commence payment for the lands in the manner provided by law. 
  5.22     Subd. 2.  [PUBLIC SALE REQUIREMENTS.] (a) Lands certified 
  5.23  as surplus by the head of a department or agency under section 
  5.24  16B.281 shall be offered for public sale by the commissioner as 
  5.25  provided in this subdivision.  After complying with subdivision 
  5.26  1 and before any public sale of surplus state-owned land is 
  5.27  made, the commissioner shall publish a notice of the sale at 
  5.28  least once each week for four successive weeks in a legal 
  5.29  newspaper and also in a newspaper of general distribution in the 
  5.30  city or county in which the real property to be sold is 
  5.31  situated.  The notice shall specify the time and place at which 
  5.32  the sale will commence, a general description of the lots or 
  5.33  tracts to be offered, and a general statement of the terms of 
  5.34  sale.  Each tract or lot shall be sold separately and shall be 
  5.35  sold for no less than its appraised value.  
  5.36     (b) Parcels remaining unsold after the offering may be sold 
  6.1   to anyone agreeing to pay the appraised value.  The sale shall 
  6.2   continue until all parcels are sold or until the commissioner 
  6.3   orders a reappraisal or withdraws the remaining parcels from 
  6.4   sale. 
  6.5      (c) Except as provided in section 16B.283, the cost of any 
  6.6   survey or appraisal as provided in subdivision 1 shall be added 
  6.7   to and made a part of the appraised value of the lands to be 
  6.8   sold, whether to any political subdivision of the state or to a 
  6.9   private purchaser as provided in this subdivision. 
  6.10     Sec. 4.  [16B.283] [TERMS OF PAYMENT.] 
  6.11     No less than ten percent of the purchase price shall be 
  6.12  paid at the time of sale with the balance payable according to 
  6.13  this section.  If the purchase price of any lot or parcel is 
  6.14  $5,000 or less, the balance shall be paid within 90 days of the 
  6.15  date of sale.  If the purchase price of any lot or parcel is in 
  6.16  excess of $5,000, the balance shall be paid in equal annual 
  6.17  installments for no more than five years, at the option of the 
  6.18  purchaser, with principal and interest payable annually in 
  6.19  advance at a rate equal to the rate in effect at the time under 
  6.20  section 549.09 on the unpaid balance, payable to the state 
  6.21  treasury on or before June 1 each year.  Any installment of 
  6.22  principal or interest may be prepaid. 
  6.23     Sec. 5.  [16B.284] [CONTRACT FOR DEED AND QUITCLAIM DEED.] 
  6.24     In the event a purchaser elects to purchase surplus real 
  6.25  property on an installment basis, the commissioner shall enter 
  6.26  into a contract for deed with the purchaser, in which shall be 
  6.27  set forth the description of the real property sold and the 
  6.28  price of the property, the consideration paid and to be paid for 
  6.29  the property, the rate of interest, and time and terms of 
  6.30  payment.  The contract for deed shall be made assignable and 
  6.31  shall further set forth that in case of the nonpayment of the 
  6.32  annual principal or interest payment due by the purchaser, or 
  6.33  any person claiming under the purchaser, then the contract for 
  6.34  deed, from the time of the failure, is entirely void and of no 
  6.35  effect and the state may be repossessed of the lot or tract and 
  6.36  may resell the lot or tract as provided in sections 16B.281 to 
  7.1   16B.287.  In the event the terms and conditions of a contract 
  7.2   for deed are completely fulfilled or if a purchaser makes a 
  7.3   lump-sum payment for the subject property in lieu of entering 
  7.4   into a contract for deed, the commissioner shall sign and cause 
  7.5   to be issued a quitclaim deed on behalf of the state.  The 
  7.6   quitclaim deed shall be in a form prescribed by the attorney 
  7.7   general and shall vest in the purchaser all of the state's 
  7.8   interest in the subject property except as provided in section 
  7.9   16B.286. 
  7.10     Sec. 6.  [16B.285] [RECORD OF CONTRACTS FOR DEED AND 
  7.11  ASSIGNMENTS; EFFECT.] 
  7.12     (a) A contract for deed issued for land sold according to 
  7.13  sections 16B.281 to 16B.287, or any assignment thereof, executed 
  7.14  and acknowledged as provided by law for the execution and 
  7.15  acknowledgment of deeds, may be recorded in the office of the 
  7.16  county recorder of any county in the state in the same manner 
  7.17  and with like effect as deeds are therein recorded.  The 
  7.18  contract for deed entitles the purchaser, or the heirs and 
  7.19  assigns of the purchaser, to the exclusive possession of the 
  7.20  land therein described, provided its terms have been in all 
  7.21  respects complied with, and the contract for deed and the record 
  7.22  thereof is conclusive evidence of title in the purchaser, or the 
  7.23  heirs and assigns of the purchaser, for all purposes and against 
  7.24  all persons, except the state of Minnesota in case of forfeiture.
  7.25     (b) When a contract for deed or partial interest in a 
  7.26  contract for deed is assigned, the assignment must be made on a 
  7.27  form provided by the commissioner, executed by the assignor and 
  7.28  assignee, and consented to by the commissioner.  An assignment 
  7.29  of a partial interest must state that payment to date has been 
  7.30  made to the commissioner. 
  7.31     (c) When the assignee satisfies the terms of the assignment 
  7.32  and corresponding terms of the contract for deed, the 
  7.33  commissioner shall issue a deed to the assignee. 
  7.34     Sec. 7.  [16B.286] [RESERVATION OF MINERALS.] 
  7.35     The state reserves for its own use all the iron, coal, 
  7.36  copper, and other valuable minerals in or upon all lands that 
  8.1   may be sold under sections 16B.281 to 16B.287 and any contract 
  8.2   for deed or quitclaim deed shall contain a clause reserving all 
  8.3   such minerals for the use of the state. 
  8.4      Sec. 8.  [16B.287] [DISPOSITION OF PROCEEDS FROM SURPLUS 
  8.5   STATE-OWNED LAND.] 
  8.6      Subdivision 1.  [PAYMENT OF EXPENSES.] Money received from 
  8.7   the sale of surplus state-owned land according to sections 
  8.8   16B.281 to 16B.287 shall be credited to the general fund except 
  8.9   as provided in this section. 
  8.10     Subd. 2.  [PAYMENT OF EXPENSES.] A portion of the proceeds 
  8.11  from the sale equal in amount to the survey, appraisal, legal, 
  8.12  advertising, and other expenses incurred by the commissioner or 
  8.13  other state official in rendering the property salable shall be 
  8.14  remitted to the account from which the expenses were paid and 
  8.15  are appropriated and immediately available for expenditure in 
  8.16  the same manner as other money in the account. 
  8.17     Sec. 9.  Minnesota Statutes 2002, section 85.015, 
  8.18  subdivision 1, is amended to read: 
  8.19     Subdivision 1.  [ACQUISITION.] (a) The commissioner of 
  8.20  natural resources shall establish, develop, maintain, and 
  8.21  operate the trails designated in this section.  Each trail shall 
  8.22  have the purposes assigned to it in this section.  The 
  8.23  commissioner of natural resources may acquire lands by gift or 
  8.24  purchase, in fee or easement, for the trail and facilities 
  8.25  related to the trail.  
  8.26     (b) Notwithstanding the offering to public entities, 
  8.27  referral to Executive Council, public sale, and related notice 
  8.28  and publication requirements of sections 94.09 to 94.165, the 
  8.29  commissioner of natural resources, in the name of the state, may 
  8.30  sell surplus lands not needed for trail purposes at private sale 
  8.31  to adjoining property owners and leaseholders.  The conveyance 
  8.32  must be by quitclaim in a form approved by the attorney general 
  8.33  for a consideration not less than the appraised value.  
  8.34     Sec. 10.  Minnesota Statutes 2002, section 89.01, is 
  8.35  amended by adding a subdivision to read: 
  8.36     Subd. 5a.  [SALE OF STATE FOREST LAND.] Any state lands 
  9.1   included in areas set apart as state forests are eliminated from 
  9.2   the state forest upon sale under the provisions of sections 
  9.3   92.06 to 92.09 or 94.09 to 94.16. 
  9.4      Sec. 11.  Minnesota Statutes 2002, section 92.02, is 
  9.5   amended to read: 
  9.6      92.02 [AUTHORITY.] 
  9.7      Sales under this chapter must be conducted by the 
  9.8   commissioner, a deputy of the commissioner, or a competent 
  9.9   person employed by the commissioner and bonded in a sum of at 
  9.10  least $10,000.  
  9.11     Sec. 12.  Minnesota Statutes 2002, section 92.03, is 
  9.12  amended to read: 
  9.13     92.03 [MINIMUM PRICE OF LANDS.] 
  9.14     Subdivision 1.  [SCHOOL LANDS.] The price of school lands 
  9.15  must be at least $5 an acre, including the value of timber 
  9.16  reproduction.  Sales of school lands must be held within the 
  9.17  county containing the lands or an adjacent county.  No more than 
  9.18  100,000 acres of school lands may be sold in one year.  If a 
  9.19  patent has been issued by the federal government to school land 
  9.20  before 1864 and the taxes on it have been paid for at least 35 
  9.21  years, the commissioner of finance may reduce the minimum price 
  9.22  of $5 an acre by the taxes paid to make the land salable.  
  9.23     Subd. 2.  [UNIVERSITY LANDS.] The price of lands donated to 
  9.24  the state by the United States by act of Congress entitled "An 
  9.25  act donating to the states of Minnesota and Oregon certain lands 
  9.26  reserved by Congress for the territories of Minnesota and 
  9.27  Oregon, for university purposes," approved March 2, 1861, and by 
  9.28  an act of Congress entitled "An act donating public lands to the 
  9.29  several states and territories which may provide colleges for 
  9.30  the benefit of agriculture and mechanic arts," approved July 2, 
  9.31  1862, must be at least $5 an acre, including the value of timber 
  9.32  reproduction.  The director commissioner shall appraise these 
  9.33  lands or any part of them and sell them in accordance with this 
  9.34  chapter.  
  9.35     Subd. 4.  [INTERNAL IMPROVEMENT LANDS.] Lands donated to 
  9.36  the state under the eighth section of an act of Congress 
 10.1   entitled "An act to appropriate the proceeds of the sales of the 
 10.2   public lands, and to grant preemption rights," approved 
 10.3   September 4, 1841, must be appraised and sold and the money 
 10.4   derived from its sale invested, as provided by the Minnesota 
 10.5   Constitution, article XI, section 8. 
 10.6      Sec. 13.  Minnesota Statutes 2002, section 92.04, is 
 10.7   amended to read: 
 10.8      92.04 [MINIMUM PRICE OF CERTAIN STATE LANDS.] 
 10.9      Lands selected for state institutions under an act of the 
 10.10  legislature entitled "An act to appropriate swamp lands to 
 10.11  certain educational and charitable institutions and for the 
 10.12  purpose of creating a state prison," approved February 13, 1865, 
 10.13  and lands known as state capitol lands, must be appraised and 
 10.14  sold as school lands are sold.  The price of lands belonging to 
 10.15  the state by virtue of the Congressional acts in this section 
 10.16  and section 92.03 must be at least $5 an acre, including the 
 10.17  value of timber reproduction.  The terms of payment and 
 10.18  conditions of sale must be the same as now provided by law.  
 10.19  When state lands have been benefited by and assessments paid for 
 10.20  drainage, the drainage improvements must be considered by the 
 10.21  state land examiner in making appraisals.  When the drained 
 10.22  lands are sold, the principal and interest paid on it must be 
 10.23  credited by the director commissioner to the proper fund to 
 10.24  which the land belongs.  
 10.25     Sec. 14.  Minnesota Statutes 2002, section 92.06, 
 10.26  subdivision 1, is amended to read: 
 10.27     Subdivision 1.  [TERMS FOR LAND SALES HELD BEFORE JULY 1, 
 10.28  2004.] (a) The terms of payment on the sale of state public 
 10.29  lands held before July 1, 2004, must be as follows:  The 
 10.30  purchaser shall pay in cash at the time of sale the appraised 
 10.31  value of all timber and costs determined by the commissioner to 
 10.32  be associated with the sale including survey, appraisal, 
 10.33  publication, deed tax, filing fee, and similar costs.  At least 
 10.34  15 percent of the purchase price of the land exclusive of timber 
 10.35  and associated costs must be paid in cash at the time of sale.  
 10.36  The balance of the purchase price must be paid in no more than 
 11.1   20 equal annual installments.  Payments must be made by June 1 
 11.2   each year following the year in which the purchase was made, 
 11.3   with interest at the rate in effect at the time of sale, 
 11.4   calculated under this subdivision, on the unpaid balances.  Any 
 11.5   installment of principal or interest may be paid in advance, but 
 11.6   part payment of an installment will not be accepted.  For the 
 11.7   purpose of computing interest, any installment of principal not 
 11.8   paid on June 1 shall be credited on the following June 1.  The 
 11.9   purchaser may pay the balance due on a sale within 30 days of 
 11.10  the sale with no interest due. 
 11.11     (b) Interest on unpaid balances must be computed as annual 
 11.12  simple interest.  The rate of interest must be based on average 
 11.13  effective interest rates on mortgage loans as provided in 
 11.14  paragraph (c). 
 11.15     (c) On or before December 31 of each year, the commissioner 
 11.16  of natural resources shall determine the rate from the average 
 11.17  effective interest rate on loans closed using the Office of 
 11.18  Thrift Supervision series, formerly the Federal Home Loan Bank 
 11.19  Board series, or its successor agency, for the most recent 
 11.20  calendar month, reported on a monthly basis in the latest 
 11.21  statistical release of the Board of Governors of the Federal 
 11.22  Reserve System.  This yield, rounded to the nearest quarter of 
 11.23  one percent, is the annual interest rate for sales of state land 
 11.24  during the succeeding calendar year. 
 11.25     (d) For state land sales in calendar year 1993 after July 
 11.26  1, 1993, the rate is eight percent, which is the September 1992 
 11.27  average from the Office of Thrift Supervision series, rounded to 
 11.28  the nearest quarter of one percent. 
 11.29     Sec. 15.  Minnesota Statutes 2002, section 92.06, is 
 11.30  amended by adding a subdivision to read: 
 11.31     Subd. 1a.  [TERMS FOR LAND SALES AFTER JULY 1, 
 11.32  2004.] Notwithstanding subdivision 1, for state land sales on or 
 11.33  after July 1, 2004, the purchaser must pay at the time of sale 
 11.34  ten percent of the total amount bid and the remainder of the 
 11.35  payment is due within 90 days of the sale date.  A person who 
 11.36  fails to make final payment within 90 days of the sale date is 
 12.1   in default.  On default, all right, title, and interest of the 
 12.2   purchaser or heirs, representatives, or assigns of the purchaser 
 12.3   in the premises shall terminate without the state doing any act 
 12.4   or thing.  A record of the default must be made in the state 
 12.5   land records of the commissioner. 
 12.6      Sec. 16.  Minnesota Statutes 2002, section 92.06, 
 12.7   subdivision 2, is amended to read: 
 12.8      Subd. 2.  [BUILDINGS OR IMPROVEMENTS.] If there are 
 12.9   buildings or other improvements upon the land, their value must 
 12.10  be appraised determined separately and included in the purchase 
 12.11  price.  A person must not remove, injure, or destroy a building 
 12.12  or other improvement until an amount equal to its appraised 
 12.13  determined value has been paid on the purchase price of the 
 12.14  premises, in addition to any payment required for timber.  
 12.15  Violation of this provision is a gross misdemeanor.  
 12.16     Sec. 17.  Minnesota Statutes 2002, section 92.06, 
 12.17  subdivision 4, is amended to read: 
 12.18     Subd. 4.  [IMPROVEMENTS, WHEN PAYMENT NOT NECESSARY.] (a) 
 12.19  If a person has made improvements to the land and if:  (1) the 
 12.20  commissioner believes that person settled the land in good faith 
 12.21  as homestead land under the laws of the United States before it 
 12.22  was certified to the state, (2) the improvements were lawfully 
 12.23  made by that person as a lessee of the state, or (3) the 
 12.24  commissioner determines, based on clear and convincing evidence 
 12.25  provided by the person, that the improvements were made by the 
 12.26  person as an inadvertent trespasser, then the value of the 
 12.27  improvements must be separately appraised determined and, if the 
 12.28  settler, lessee, or inadvertent trespasser purchases the land, 
 12.29  the settler, lessee, or inadvertent trespasser is not required 
 12.30  to pay for the improvements.  If another person purchases the 
 12.31  land, that person must pay the owner of the improvements, in 
 12.32  addition to all other required payments, the appraised 
 12.33  determined amount for the improvements. 
 12.34     (b) Payment for improvements must be made within 15 days of 
 12.35  the auction sale, either in cash or upon terms and conditions 
 12.36  agreeable to the owner of the improvements.  If payment for 
 13.1   improvements is not made in cash, and if there is no agreement 
 13.2   between the parties within 15 days of the auction sale, the 
 13.3   commissioner may: 
 13.4      (1) sell the property to the second highest qualified 
 13.5   bidder if that bidder submitted to the commissioner's 
 13.6   representative, at the auction sale, a written request to buy 
 13.7   the property at a specified price; or 
 13.8      (2) void the sale and reoffer the property at a subsequent 
 13.9   sale. 
 13.10     (c) This subdivision does not apply unless the owner of the 
 13.11  improvements makes a verified application to the commissioner 
 13.12  showing entitlement to the improvements before the first state 
 13.13  public sale at which the land is offered for sale.  The 
 13.14  applicant must appear at the sale and offer to purchase the land 
 13.15  for at least its appraised determined value including all timber 
 13.16  on it, and make the purchase if no higher bid is received.  
 13.17  Actions or other proceedings involving the land in question 
 13.18  begun before the sale must have been completed. 
 13.19     Sec. 18.  Minnesota Statutes 2002, section 92.06, 
 13.20  subdivision 5, is amended to read: 
 13.21     Subd. 5.  [FURTHER SECURITY.] The director commissioner may 
 13.22  require of the purchaser security for the payment of the 
 13.23  deferred installments.  The director commissioner may recover 
 13.24  the money and enforce any security by action brought in the 
 13.25  director's name. 
 13.26     Sec. 19.  Minnesota Statutes 2002, section 92.08, is 
 13.27  amended to read: 
 13.28     92.08 [SURVEYS AND RESURVEYS.] 
 13.29     (a) The commissioner may have surveys made to determine the 
 13.30  correct boundaries or description of the land or to dispose of 
 13.31  it in convenient parcels.  When the commissioner determines that 
 13.32  the interest of the state will be promoted, the commissioner may 
 13.33  subdivide land controlled by the commissioner into smaller 
 13.34  parcels or city lots. 
 13.35     (b) When the commissioner believes that an injustice has 
 13.36  been done the purchaser because of an incorrect United States 
 14.1   survey, the commissioner may have a resurvey made by a competent 
 14.2   surveyor.  The surveyor shall prepare a plat showing the correct 
 14.3   acreage of each subdivision resurveyed and file it with the 
 14.4   commissioner and with the county recorder of the proper county.  
 14.5   The commissioner may call in the land certificates affected by 
 14.6   the resurvey and issue new ones.  The certificates must show the 
 14.7   correct acreage and give full credit for all payments of 
 14.8   principal and interest made. 
 14.9      Sec. 20.  Minnesota Statutes 2002, section 92.10, 
 14.10  subdivision 2, is amended to read: 
 14.11     Subd. 2.  [PREPARATION.] The commissioner shall prepare 
 14.12  suitable maps or plats designating school or other state lands 
 14.13  owned by the state which have been appraised and that are 
 14.14  subject to sale.  The maps or plats must be printed and 
 14.15  distributed with other printed matter in sufficient quantities 
 14.16  to properly advertise the sales provided by this chapter. 
 14.17     Sec. 21.  [92.115] [VALUATION OF STATE LANDS; MINIMUM BID.] 
 14.18     Subdivision 1.  [LAND VALUATION REQUIRED.] Before offering 
 14.19  any state land for sale under this chapter, the commissioner 
 14.20  must establish the value of the land.  The commissioner shall 
 14.21  have the land appraised if the estimated market value is in 
 14.22  excess of $50,000.  
 14.23     Subd. 2.  [MINIMUM BID.] The minimum bid for a parcel of 
 14.24  land must include the estimated value or appraised value of the 
 14.25  land and any improvements and, if any of the land is valuable 
 14.26  for merchantable timber, the value of the merchantable timber.  
 14.27  The minimum bid may include expenses incurred by the 
 14.28  commissioner in rendering the property salable, including 
 14.29  survey, appraisal, legal, advertising, and other expenses. 
 14.30     Sec. 22.  Minnesota Statutes 2002, section 92.12, 
 14.31  subdivision 1, is amended to read: 
 14.32     Subdivision 1.  [APPRAISERS.] The commissioner may have any 
 14.33  school trust or other state lands appraised.  The appraisals 
 14.34  must be made by regularly appointed and qualified state 
 14.35  appraisers.  Each appraiser shall take and sign an oath to 
 14.36  faithfully and impartially discharge the duties of appraiser as 
 15.1   best able and that the appraiser is not interested directly or 
 15.2   indirectly in the state lands to be appraised, or the timber or 
 15.3   improvements on them or in their purchase.  The oath must be 
 15.4   attached to the appraisal report.  To be qualified, an appraiser 
 15.5   must hold a state appraiser license issued by the Department of 
 15.6   Commerce.  The appraisal must be in conformity with the Uniform 
 15.7   Standards of Professional Appraisal Practice of the Appraisal 
 15.8   Foundation. 
 15.9      Sec. 23.  Minnesota Statutes 2002, section 92.12, 
 15.10  subdivision 2, is amended to read: 
 15.11     Subd. 2.  [VALUATION AND APPRAISAL.] The appraiser shall 
 15.12  view and appraise the lands, including the merchantable timber 
 15.13  and improvements on them, and make a report to the 
 15.14  commissioner.  The valuation of the lands and the merchantable 
 15.15  timber and improvements on them must each be made and stated 
 15.16  separately in the appraisal.  The minimum price established by 
 15.17  the appraisal is the minimum price for the lands until changed 
 15.18  by later appraisal.  No school or other state lands may be sold 
 15.19  until appraised.  The price may not be less than $5 an acre.  In 
 15.20  the appraisal the value of the land before the addition of the 
 15.21  value of merchantable timber and improvements must include the 
 15.22  value of timber reproduction.  
 15.23     Sec. 24.  Minnesota Statutes 2002, section 92.12, 
 15.24  subdivision 4, is amended to read: 
 15.25     Subd. 4.  [SALES.] The commissioner shall hold frequent 
 15.26  sales of school trust and other state lands.  The time and place 
 15.27  of the sales must be publicly posted in the courthouse in the 
 15.28  county where the lands are located and in the courthouse in the 
 15.29  county where the sale is to take place at least 30 days in 
 15.30  advance, in addition to the regular notice of sale provided by 
 15.31  law.  At this sale The commissioner shall sell lands the 
 15.32  commissioner considers best for the public interest.  
 15.33     Sec. 25.  Minnesota Statutes 2002, section 92.12, 
 15.34  subdivision 5, is amended to read: 
 15.35     Subd. 5.  [SALE OF LAND AND TIMBER.] When the appraisal and 
 15.36  or other reports show that the land is mainly valuable for 
 16.1   agricultural purposes and contains only small quantities of 
 16.2   timber, the commissioner may either sell the timber separately 
 16.3   as provided by law for state timber sales or sell the land as 
 16.4   agricultural land.  If the land is sold as agricultural land the 
 16.5   purchaser must pay down as first payment an amount equal to the 
 16.6   value of the timber, in addition to the first payment required 
 16.7   on the land.  If the appraisal and other reports show land 
 16.8   should be sold for continuous forest production or other 
 16.9   conservation purpose, the commissioner may require that the full 
 16.10  appraised value of land and timber must be paid by the purchaser 
 16.11  at the time of purchase.  
 16.12     Sec. 26.  Minnesota Statutes 2002, section 92.14, 
 16.13  subdivision 1, is amended to read: 
 16.14     Subdivision 1.  [TIME.] At least 30 days before a sale, the 
 16.15  commissioner shall give four weeks' published notice of the sale 
 16.16  at St. Paul, in each county containing land to be sold, and in 
 16.17  the county where the sale will be held.  If there is no 
 16.18  newspaper published in the county, four weeks' posted notice in 
 16.19  the county courthouse must be given.  The commissioner shall 
 16.20  also provide electronic notice of sale.  On or before the day of 
 16.21  sale, the commissioner may withdraw any lands. 
 16.22     Sec. 27.  [92.145] [UNSOLD LANDS.] 
 16.23     Except for school trust lands, parcels remaining unsold 
 16.24  after the public sale offering may be sold to anyone agreeing to 
 16.25  pay the minimum bid established for the public sale.  The sale 
 16.26  shall continue until all eligible parcels have been sold or the 
 16.27  commissioner withdraws the remaining parcels from sale. 
 16.28     Sec. 28.  Minnesota Statutes 2002, section 92.16, is 
 16.29  amended by adding a subdivision to read: 
 16.30     Subd. 5.  [LANDS SALES AFTER JULY 1, 2004.] Notwithstanding 
 16.31  subdivisions 1 to 4, no certificate of sale shall be issued for 
 16.32  land sold on or after July 1, 2004.  The terms of payment for 
 16.33  land sales on or after July 1, 2004, are as provided in section 
 16.34  92.06, subdivision 1a. 
 16.35     Sec. 29.  Minnesota Statutes 2002, section 92.28, is 
 16.36  amended to read: 
 17.1      92.28 [PROCEEDS OF SALES; DISTRIBUTION.] 
 17.2      (a) A portion of the proceeds from the sale, equal in 
 17.3   amount to the survey, appraisal, legal, advertising, and other 
 17.4   expenses incurred by the commissioner in rendering the property 
 17.5   salable and included in the minimum bid amount, shall be 
 17.6   remitted to the account from which the expenses were paid and 
 17.7   are appropriated and immediately available for expenditure in 
 17.8   the same manner as other money in the account. 
 17.9      (b) The principal sums remainder of the proceeds accruing 
 17.10  from all sales by the commissioner of school, university, 
 17.11  internal improvement, or other state lands, or of pine timber 
 17.12  upon state lands must be deposited in the several permanent 
 17.13  funds to which they, respectively, belong.  The sums may not be 
 17.14  reduced by any costs or charges of officers, by fees, or any 
 17.15  other means.  
 17.16     (c) Money received as interest on the funds, as penalties, 
 17.17  or as rents of the lands, must be deposited in the current or 
 17.18  general funds to which they belong.  Interest and penalties on 
 17.19  the internal improvement land fund, and rents of the land, must 
 17.20  be compounded with the permanent fund.  
 17.21     Sec. 30.  Minnesota Statutes 2002, section 92.29, is 
 17.22  amended to read: 
 17.23     92.29 [LAND PATENTS.] 
 17.24     The commissioner of natural resources shall sign and issue 
 17.25  in the name of the state and under the seal of the state a 
 17.26  patent for the land described in any certificate of sale when 
 17.27  the principal and interest specified in the certificate of sale 
 17.28  and all delinquent taxes due on the land have been paid.  The 
 17.29  patent shall be issued to the purchaser named in the certificate 
 17.30  of sale, or the purchaser's successor in interest by execution, 
 17.31  judicial, mortgage or tax sale, or the assignee, vendee, heir or 
 17.32  devisee of the purchaser, as shown by a properly certified 
 17.33  abstract of title or other evidence if the purchaser's successor 
 17.34  is a person other than the purchaser named in the certificate of 
 17.35  sale.  If the certificate of sale has become lost or destroyed, 
 17.36  an affidavit stating that fact or a certified copy of the 
 18.1   certificate must be submitted by the applicant for a 
 18.2   patent.  When total payment is made within 90 days of the sale, 
 18.3   the commissioner shall sign and issue, in the name of the state 
 18.4   and under the seal of the state, a patent for the land sold. 
 18.5      Sec. 31.  Minnesota Statutes 2002, section 92.321, 
 18.6   subdivision 1, is amended to read: 
 18.7      Subdivision 1.  [COMMISSIONER MAY SELL LANDS.] The 
 18.8   commissioner of natural resources may appraise and sell any 
 18.9   unreserved state public land which in the commissioner's opinion 
 18.10  is suitable for private forest management. 
 18.11     Sec. 32.  Minnesota Statutes 2002, section 94.09, 
 18.12  subdivision 1, is amended to read: 
 18.13     Subdivision 1.  [APPLICABILITY.] All tracts or lots of real 
 18.14  property belonging to the state of Minnesota or that may 
 18.15  hereafter accrue to the state, including tracts or lots which 
 18.16  have escheated to the state, may be disposed of in accordance 
 18.17  with sections 94.09 to 94.16; provided, sections 94.09 to 94.16 
 18.18  shall not apply to school or other trust fund lands, belonging 
 18.19  to the state, or that may hereafter accrue to the state, under 
 18.20  and by virtue of any act of Congress or to any other state-owned 
 18.21  lands the sale or disposition of which is otherwise provided for 
 18.22  by law.  All tracts or lots of real property belonging to the 
 18.23  state and under the control and supervision of the commissioner 
 18.24  of natural resources shall be disposed of according to sections 
 18.25  94.09 to 94.16, unless otherwise provided by law. 
 18.26     Sec. 33.  Minnesota Statutes 2002, section 94.09, 
 18.27  subdivision 3, is amended to read: 
 18.28     Subd. 3.  [NOTICE TO AGENCIES; DETERMINATION OF SURPLUS.] 
 18.29  On or before October 1 of each year, the commissioner of 
 18.30  administration shall review the certifications of heads of each 
 18.31  department or agency provided for in this section.  The 
 18.32  commissioner of natural resources shall send written notice to 
 18.33  all state departments, agencies and the University of Minnesota 
 18.34  describing any lands or tracts which may be declared surplus.  
 18.35  If a department or agency or the University of Minnesota desires 
 18.36  custody of the lands or tracts, it shall submit a written 
 19.1   request to the commissioner, no later than four calendar weeks 
 19.2   after mailing of the notice, setting forth in detail its reasons 
 19.3   for desiring to acquire, and its intended use of, the land or 
 19.4   tract.  The commissioner of administration shall then determine 
 19.5   whether any of the lands described in the certifications of the 
 19.6   heads of the departments or agencies should be declared surplus 
 19.7   and offered for sale or otherwise disposed of by transferring 
 19.8   custodial control to other requesting state departments or 
 19.9   agencies or to the Board of Regents of the University of 
 19.10  Minnesota for educational purposes, provided however that 
 19.11  transfer to the Board of Regents shall not be determinative of 
 19.12  tax exemption or immunity.  If the commissioner determines that 
 19.13  any of such the lands are no longer needed for state purposes, 
 19.14  the commissioner shall make findings of fact, describe the 
 19.15  lands, declare such the lands to be surplus state land, and 
 19.16  state the reasons for the sale or disposition thereof, and 
 19.17  notify the state Executive Council of such determination of the 
 19.18  lands.  
 19.19     Sec. 34.  Minnesota Statutes 2002, section 94.10, is 
 19.20  amended to read: 
 19.21     94.10 [SURVEYS, APPRAISALS, AND SALE.] 
 19.22     Subdivision 1.  [APPRAISAL; NOTICE AND OFFER TO PUBLIC 
 19.23  BODIES.] (a) Before offering any surplus state-owned lands for 
 19.24  sale, the commissioner of administration may survey such natural 
 19.25  resources must establish the value of the lands, and if the 
 19.26  value thereof is estimated to be $40,000 or less, may have such 
 19.27  lands appraised.  The commissioner shall have the lands 
 19.28  appraised if the estimated value is in excess of 
 19.29  $40,000 $50,000.  The appraiser shall before entering upon the 
 19.30  duties of the office take and subscribe an oath that the 
 19.31  appraiser will faithfully and impartially discharge the duties 
 19.32  as appraiser according to the best of the appraiser's ability 
 19.33  and that the appraiser is not interested directly or indirectly 
 19.34  in any of the lands to be appraised or the timber or 
 19.35  improvements thereon or in the purchase thereof and has entered 
 19.36  into no agreement or combination to purchase the same or any 
 20.1   part thereof, which oath shall be attached to the report of such 
 20.2   appraisal No parcel of state-owned land shall be sold for less 
 20.3   than $1,000.  
 20.4      (b) The appraisals must be made by regularly appointed and 
 20.5   qualified state appraisers.  To be qualified, an appraiser must 
 20.6   hold a state appraiser license issued by the Department of 
 20.7   Commerce.  The appraisal must be in conformity with the Uniform 
 20.8   Standards of Professional Appraisal Practice of the Appraisal 
 20.9   Foundation. 
 20.10     (c) Before offering such surplus state-owned lands for 
 20.11  public sale, such the lands shall first be offered to the city, 
 20.12  county, town, school district, or other public body corporate or 
 20.13  politic in which the lands are situated for public purposes 
 20.14  and they the lands may be sold for such public purposes for not 
 20.15  less than the appraised value thereof of the lands.  To 
 20.16  determine whether a public body desires to purchase the surplus 
 20.17  land, the commissioner of administration natural resources shall 
 20.18  give a written notice to the governing body of each political 
 20.19  subdivision whose jurisdictional boundaries include or are 
 20.20  adjacent to the surplus land.  If a public body desires to 
 20.21  purchase the surplus land, it shall submit a written offer to 
 20.22  the commissioner not no later than two weeks after receipt of 
 20.23  notice setting forth in detail its reasons for desiring to 
 20.24  acquire and its intended use of the land.  In the event that 
 20.25  more than one public body tenders an offer, the commissioner 
 20.26  shall determine which party shall receive the property, and 
 20.27  shall submit written findings regarding the decision.  If lands 
 20.28  are offered for sale for such public purposes, and if a public 
 20.29  body notifies the commissioner of administration of its desire 
 20.30  to acquire such the lands, the public body may have not to 
 20.31  exceed up to two years from the date of the accepted offer to 
 20.32  commence payment for the lands in the manner provided by law. 
 20.33     Subd. 2.  [PUBLIC SALE REQUIREMENTS.] (a) Lands certified 
 20.34  as surplus by the head of a department or agency other than the 
 20.35  Department of Natural Resources shall be offered for public sale 
 20.36  by the commissioner of administration as provided in this 
 21.1   paragraph.  After complying with subdivision 1 and before any 
 21.2   public sale of surplus state-owned land is made and at least 30 
 21.3   days before the sale, the commissioner of administration natural 
 21.4   resources shall publish a notice thereof at least once in each 
 21.5   week for four successive weeks in a legal newspaper and also of 
 21.6   the sale in a newspaper of general distribution in the city or 
 21.7   county in which the real property to be sold is situated, 
 21.8   which.  The notice shall specify the time and place at which the 
 21.9   sale will commence, a general description of the lots or tracts 
 21.10  to be offered, and a general statement of the terms of 
 21.11  sale.  Each tract or lot shall be sold separately and shall be 
 21.12  sold for not less than the appraised value thereof.  The 
 21.13  commissioner shall also provide electronic notice of sale. 
 21.14     (b) The minimum bid for a parcel of land must include the 
 21.15  estimated value or appraised value of the land and any 
 21.16  improvements and, if any of the land is valuable for 
 21.17  merchantable timber, the value of the merchantable timber.  The 
 21.18  minimum bid may include expenses incurred by the commissioner in 
 21.19  rendering the property salable, including survey, appraisal, 
 21.20  legal, advertising, and other expenses. 
 21.21     (c) Parcels remaining unsold after the offering may be sold 
 21.22  to anyone agreeing to pay the appraised value thereof.  The sale 
 21.23  shall continue until all parcels are sold or until the 
 21.24  commissioner orders a reappraisal or withdraws the remaining 
 21.25  parcels from sale.  
 21.26     (b) Lands certified as surplus by the commissioner of 
 21.27  natural resources shall be offered for public sale by the 
 21.28  commissioner of natural resources in the manner provided in 
 21.29  paragraph (a) for sales by the commissioner of administration. 
 21.30     (c) Except as provided in section 94.11, the cost of any 
 21.31  survey or appraisal as provided in subdivision 1 shall be added 
 21.32  to and made a part of the appraised value of the lands to be 
 21.33  sold, whether to any political subdivision of the state or to a 
 21.34  private purchaser as provided in this subdivision.  
 21.35     Sec. 35.  Minnesota Statutes 2002, section 94.11, is 
 21.36  amended to read: 
 22.1      94.11 [TERMS OF PAYMENT.] 
 22.2      Not less than ten percent of the purchase price shall be 
 22.3   paid at the time of sale with the balance payable as follows:  
 22.4   If the purchase price of any lot or parcel is $5,000 or less, 
 22.5   the balance shall be paid within 90 days of the date of sale.  
 22.6   If the purchase price of any lot or parcel is in excess of 
 22.7   $5,000, the balance shall be paid in equal annual installments 
 22.8   for not more than five years, at the option of the purchaser, 
 22.9   with principal and interest payable annually in advance at a 
 22.10  rate equal to the rate in effect at the time under section 
 22.11  549.09 on the unpaid balance, payable to the state treasury on 
 22.12  or before June 1 each year.  Any installment of principal or 
 22.13  interest may be prepaid.  Terms of payment for lands sold by the 
 22.14  commissioner of natural resources before July 1, 2004, are the 
 22.15  same as those provided for state public lands by section 92.06, 
 22.16  subdivision 1.  For lands sold by the commissioner of natural 
 22.17  resources on or after July 1, 2004, the terms of payment are the 
 22.18  same as those provided for state public lands by section 92.06, 
 22.19  subdivision 1a. 
 22.20     Sec. 36.  Minnesota Statutes 2002, section 94.12, is 
 22.21  amended to read: 
 22.22     94.12 [CONTRACT FOR DEED AND QUITCLAIM DEED.] 
 22.23     Subdivision 1.  [LANDS SOLD BEFORE JULY 1, 2004.] In the 
 22.24  event a purchaser elects to purchase surplus real property on an 
 22.25  installment basis, the commissioner of administration shall 
 22.26  enter into a contract for deed with the purchaser thereof in 
 22.27  which shall be set forth the description of the real property 
 22.28  sold and the price thereof, the consideration paid and to be 
 22.29  paid therefor, the rate of interest, and time and terms of 
 22.30  payment.  This contract for deed shall be made assignable and 
 22.31  shall further set forth that in case of the nonpayment of the 
 22.32  annual principal or interest payment due by the purchaser, or 
 22.33  any person claiming under the purchaser, then the contract for 
 22.34  deed, from the time of such failure, will be entirely void and 
 22.35  of no effect and the state may be repossessed of the lot or 
 22.36  tract and may resell the same as provided in sections 94.09 to 
 23.1   94.16.  In the event the terms and conditions of a contract for 
 23.2   deed for lands sold before July 1, 2004, are completely 
 23.3   fulfilled or if a purchaser makes a lump sum payment for the 
 23.4   subject property in lieu of entering into a contract for deed, 
 23.5   the commissioner of administration, shall sign and cause to be 
 23.6   issued a quitclaim deed on behalf of the state.  Said quitclaim 
 23.7   deed shall be in a form prescribed by the attorney general and 
 23.8   shall vest in purchaser all of the state's interest in the 
 23.9   subject property except as provided in section 94.14.  
 23.10     Subd. 2.  [LANDS SOLD AFTER JULY 1, 2004.] On or after July 
 23.11  1, 2004, when total payment is made within 90 days of the sale, 
 23.12  the commissioner of natural resources shall sign and cause to be 
 23.13  issued a quitclaim deed on behalf of the state.  The quitclaim 
 23.14  deed shall be in a form prescribed by the attorney general and 
 23.15  shall vest in the purchaser all of the state's interest in the 
 23.16  subject property, except as provided in section 94.14. 
 23.17     Sec. 37.  Minnesota Statutes 2002, section 94.13, is 
 23.18  amended to read: 
 23.19     94.13 [RECORD OF CONTRACTS FOR DEED AND ASSIGNMENTS; 
 23.20  EFFECT.] 
 23.21     (a) A contract for deed issued before July 1, 2004, 
 23.22  pursuant to sections 94.09 to 94.16, or any assignment thereof, 
 23.23  executed and acknowledged as provided by law for the execution 
 23.24  and acknowledgment of deeds may be recorded in the office of the 
 23.25  county recorder of any county in the state in the same manner 
 23.26  and with like effect as deeds are therein recorded.  This 
 23.27  contract for deed shall entitle the purchaser thereof, or the 
 23.28  heirs and assigns of the purchaser, to the exclusive possession 
 23.29  of the land therein described, provided its terms have been in 
 23.30  all respects complied with, and the contract for deed and the 
 23.31  record thereof shall be conclusive evidence of title in the 
 23.32  purchaser, or the heirs and assigns of the purchaser, for all 
 23.33  purposes and against all persons, except the state of Minnesota 
 23.34  in case of forfeiture. 
 23.35     (b) When a contract for deed or partial interest in a 
 23.36  contract for deed is assigned, the assignment must be made on a 
 24.1   form provided by the commissioner, executed by the assignor and 
 24.2   assignee, and consented to by the commissioner.  An assignment 
 24.3   of a partial interest must state that payment to date has been 
 24.4   made to the commissioner.  
 24.5      (c) When the assignee satisfies the terms of the assignment 
 24.6   and corresponding terms of the contract for deed, the 
 24.7   commissioner shall issue a deed to the assignee.  
 24.8      Sec. 38.  Minnesota Statutes 2002, section 94.16, 
 24.9   subdivision 2, is amended to read: 
 24.10     Subd. 2.  [PAYMENT OF EXPENSES.] A portion of the proceeds 
 24.11  from the sale equal in amount to the survey, appraisal, legal, 
 24.12  advertising, and other expenses incurred by the commissioner of 
 24.13  administration or other state official natural resources in 
 24.14  rendering the property salable shall be remitted to the account 
 24.15  from which the expenses were paid, and are appropriated and 
 24.16  immediately available for expenditure in the same manner as 
 24.17  other money in the account. 
 24.18     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
 24.19  525.161, is amended to read: 
 24.20     525.161 [NO SURVIVING SPOUSE OR KINDRED, NOTICES TO 
 24.21  ATTORNEY GENERAL.] 
 24.22     When it appears from the petition or application for 
 24.23  administration of the estate, or otherwise, in a proceeding in 
 24.24  the court that the intestate left surviving no spouse or 
 24.25  kindred, the court shall give notice of such fact and notice of 
 24.26  all subsequent proceedings in such estate to the attorney 
 24.27  general forthwith; and the attorney general shall protect the 
 24.28  interests of the state during the course of administration.  The 
 24.29  residue which escheats to the state shall be transmitted to the 
 24.30  attorney general.  All moneys, stocks, bonds, notes, mortgages 
 24.31  and other securities, and all other personal property so 
 24.32  escheated shall then be given into the custody of the 
 24.33  commissioner of finance who shall immediately credit the moneys 
 24.34  received to the general fund.  The commissioner of finance shall 
 24.35  hold such stocks, bonds, notes, mortgages and other securities, 
 24.36  and all other personal property, subject to such investment, 
 25.1   sale or other disposition as the State Board of Investment may 
 25.2   direct pursuant to section 11A.04, clause (9).  The attorney 
 25.3   general shall immediately report to the State Executive Council 
 25.4   all real property received in the individual escheat, and any 
 25.5   sale or disposition of such real estate shall be made in 
 25.6   accordance with sections 94.09 to 94.16 16B.281 to 16B.287.  
 25.7      Sec. 40.  Minnesota Statutes 2003 Supplement, section 
 25.8   525.841, is amended to read: 
 25.9      525.841 [ESCHEAT RETURNED.] 
 25.10     In all such cases the commissioner of finance shall be 
 25.11  furnished with a certified copy of the court's order assigning 
 25.12  the escheated property to the persons entitled thereto, and upon 
 25.13  notification of payment of the estate tax, the commissioner of 
 25.14  finance shall draw a warrant or execute a proper conveyance to 
 25.15  the persons designated in such order.  In the event any 
 25.16  escheated property has been sold pursuant to sections 11A.04, 
 25.17  clause (9), and 11A.10, subdivision 2, or 94.09 to 94.16 16B.281 
 25.18  to 16B.287, then the warrant shall be for the appraised value as 
 25.19  established during the administration of the decedent's estate.  
 25.20  There is hereby annually appropriated from any moneys in the 
 25.21  state treasury not otherwise appropriated an amount sufficient 
 25.22  to make payment to all such designated persons.  No interest 
 25.23  shall be allowed on any amount paid to such persons.  
 25.24     Sec. 41.  [REPEALER.] 
 25.25     Minnesota Statutes 2002, sections 92.09; 92.11; and 94.09, 
 25.26  subdivisions 2, 4, 5, and 6, are repealed. 
 25.27     Sec. 42.  [EFFECTIVE DATE.] 
 25.28     Sections 1 to 41 are effective July 1, 2004. 
 25.29                             ARTICLE 2
 25.30                       STATE LAND MANAGEMENT
 25.31     Section 1.  Minnesota Statutes 2002, section 84.0272, is 
 25.32  amended by adding a subdivision to read: 
 25.33     Subd. 3.  [MINIMAL VALUE ACQUISITION.] (a) Notwithstanding 
 25.34  subdivision 1, if the commissioner determines that lands or 
 25.35  interests in land have a value less than $5,000, the 
 25.36  commissioner may acquire the lands for the value determined by 
 26.1   the commissioner without an appraisal.  The commissioner shall 
 26.2   make the determination based upon available information 
 26.3   including, but not limited to: 
 26.4      (1) the most recent assessed market value of the land or 
 26.5   interests in land as determined by the county assessor of the 
 26.6   county in which the land or interests in land is located; 
 26.7      (2) a sale price of the land or interests in land, provided 
 26.8   the sale occurred within the past year; 
 26.9      (3) the sale prices of comparable land or interests in land 
 26.10  located in the vicinity and sold within the past year; or 
 26.11     (4) an appraisal of the land or interests in land conducted 
 26.12  within the past year.  
 26.13     (b) In the event the value is minimal, the commissioner may 
 26.14  add a transaction incentive, provided that the sum of the 
 26.15  incentive plus the value of the land does not exceed $1,000. 
 26.16     Sec. 2.  Minnesota Statutes 2002, section 84.0272, is 
 26.17  amended by adding a subdivision to read: 
 26.18     Subd. 4.  [AGREEMENT BY LANDOWNER.] The commissioner shall 
 26.19  utilize the valuation methods prescribed in subdivisions 2 and 3 
 26.20  only with prior consent of the landowner from whom the state 
 26.21  proposes to purchase land or interests in land. 
 26.22     Sec. 3.  Minnesota Statutes 2002, section 86A.05, 
 26.23  subdivision 14, is amended to read: 
 26.24     Subd. 14.  [AQUATIC MANAGEMENT AREAS.] (a) Aquatic 
 26.25  management areas may be established to protect, develop, and 
 26.26  manage lakes, rivers, streams, and adjacent wetlands and lands 
 26.27  that are critical for fish and other aquatic life, for water 
 26.28  quality, and for their intrinsic biological value, public 
 26.29  fishing, or other compatible outdoor recreational uses. 
 26.30     (b) Aquatic management areas may be established to protect 
 26.31  wetland areas under ten acres that are donated to the Department 
 26.32  of Natural Resources.  
 26.33     (c) No unit may be authorized unless it meets one or more 
 26.34  of the following criteria: 
 26.35     (1) provides angler or management access; 
 26.36     (2) protects fish spawning, rearing, or other unique 
 27.1   habitat; 
 27.2      (3) protects aquatic wildlife feeding and nesting areas; 
 27.3      (4) protects critical shoreline habitat; or 
 27.4      (5) provides a site for research on natural history. 
 27.5      (d) Aquatic management areas must be administered by the 
 27.6   commissioner of natural resources in a manner consistent with 
 27.7   the purposes of this subdivision to perpetuate and, if 
 27.8   necessary, reestablish high quality aquatic habitat for 
 27.9   production of fish, wildlife, and other aquatic species.  Public 
 27.10  fishing and other uses shall be consistent with the limitations 
 27.11  of the resource, including the need to preserve adequate 
 27.12  populations and prevent long-term habitat injury or excessive 
 27.13  fish population reduction or increase.  Public access to aquatic 
 27.14  management areas may be closed during certain time periods. 
 27.15     (e) State-owned lands or waters, or any state-owned 
 27.16  interests in lands or waters, acquired before August 1, 2000, 
 27.17  that meet the criteria of this subdivision and that have been 
 27.18  administered by the commissioner of natural resources as fish 
 27.19  management areas or other areas of fishery interest are 
 27.20  authorized as units of the outdoor recreation system upon 
 27.21  designation by the commissioner of natural resources as aquatic 
 27.22  management areas. 
 27.23     Sec. 4.  Minnesota Statutes 2002, section 92.121, is 
 27.24  amended to read: 
 27.25     92.121 [PERMANENT SCHOOL FUND LANDS.] 
 27.26     The commissioner of natural resources shall exchange 
 27.27  permanent school fund land as defined in the Minnesota 
 27.28  Constitution, article XI, section 8, located in state parks, 
 27.29  state recreation areas, wildlife management areas, scientific 
 27.30  and natural areas, or state waysides or on lands managed by the 
 27.31  commissioner as old growth stands, for other lands as allowed by 
 27.32  the Minnesota Constitution, article XI, section 10, and section 
 27.33  94.343, subdivision 1, that are compatible with the goal of the 
 27.34  permanent school fund lands in section 127A.31 when, as a result 
 27.35  of management practices applied to the permanent school fund 
 27.36  lands and associated resources, revenue generation has been 
 28.1   diminished or is prohibited and no alternative has been put into 
 28.2   effect to compensate the permanent school fund for the income 
 28.3   losses.  
 28.4      Sec. 5.  Minnesota Statutes 2002, section 282.01, 
 28.5   subdivision 3, is amended to read: 
 28.6      Subd. 3.  [NONCONSERVATION LANDS; APPRAISAL AND SALE.] All 
 28.7   parcels of land classified as nonconservation, except those 
 28.8   which may be reserved, shall be sold as provided, if it is 
 28.9   determined, by the county board of the county in which the 
 28.10  parcels lie, that it is advisable to do so, having in mind their 
 28.11  accessibility, their proximity to existing public improvements, 
 28.12  and the effect of their sale and occupancy on the public 
 28.13  burdens.  Any parcels of land proposed to be sold shall be first 
 28.14  appraised by the county board of the county in which the parcels 
 28.15  lie.  The parcels may be reappraised whenever the county board 
 28.16  deems it necessary to carry out the intent of sections 282.01 to 
 28.17  282.13.  In an appraisal the value of the land and any standing 
 28.18  timber on it shall be separately determined.  No parcel of land 
 28.19  containing any standing timber may be sold until the appraised 
 28.20  value of the timber on it and the sale of the land have been 
 28.21  approved by the commissioner of natural resources.  The 
 28.22  commissioner shall base review of a proposed sale on the policy 
 28.23  and considerations specified in subdivision 1.  The decision of 
 28.24  the commissioner shall be in writing and shall state the reasons 
 28.25  for it.  The county may appeal the decision of the commissioner 
 28.26  in accordance with chapter 14.  
 28.27     In any county in which a state forest or any part of it is 
 28.28  located, the county auditor shall submit to the commissioner at 
 28.29  least 30 60 days before the first publication of the list of 
 28.30  lands to be offered for sale a list of all lands included on the 
 28.31  list which are situated outside of any incorporated municipality.
 28.32  If, at any time before the opening of the sale, the commissioner 
 28.33  notifies the county auditor in writing that there is standing 
 28.34  timber on any parcel of such land, the parcel shall not be sold 
 28.35  unless the requirements of this section respecting the separate 
 28.36  appraisal of the timber and the approval of the appraisal by the 
 29.1   commissioner have been complied with.  The commissioner may 
 29.2   waive the requirement of the 30-day 60-day notice as to any 
 29.3   parcel of land which has been examined and the timber value 
 29.4   approved as required by this section. 
 29.5      If any public improvement is made by a municipality after 
 29.6   any parcel of land has been forfeited to the state for the 
 29.7   nonpayment of taxes, and the improvement is assessed in whole or 
 29.8   in part against the property benefited by it, the clerk of the 
 29.9   municipality shall certify to the county auditor, immediately 
 29.10  upon the determination of the assessments for the improvement, 
 29.11  the total amount that would have been assessed against the 
 29.12  parcel of land if it had been subject to assessment; or if the 
 29.13  public improvement is made, petitioned for, ordered in or 
 29.14  assessed, whether the improvement is completed in whole or in 
 29.15  part, at any time between the appraisal and the sale of the 
 29.16  parcel of land, the cost of the improvement shall be included as 
 29.17  a separate item and added to the appraised value of the parcel 
 29.18  of land at the time it is sold.  No sale of a parcel of land 
 29.19  shall discharge or free the parcel of land from lien for the 
 29.20  special benefit conferred upon it by reason of the public 
 29.21  improvement until the cost of it, including penalties, if any, 
 29.22  is paid.  The county board shall determine the amount, if any, 
 29.23  by which the value of the parcel was enhanced by the improvement 
 29.24  and include the amount as a separate item in fixing the 
 29.25  appraised value for the purpose of sale.  In classifying, 
 29.26  appraising, and selling the lands, the county board may 
 29.27  designate the tracts as assessed and acquired, or may by 
 29.28  resolution provide for the subdivision of the tracts into 
 29.29  smaller units or for the grouping of several tracts into one 
 29.30  tract when the subdivision or grouping is deemed advantageous 
 29.31  for the purpose of sale.  Each such smaller tract or larger 
 29.32  tract must be classified and appraised as such before being 
 29.33  offered for sale.  If any such lands have once been classified, 
 29.34  the board of county commissioners, in its discretion, may, by 
 29.35  resolution, authorize the sale of the smaller tract or larger 
 29.36  tract without reclassification. 
 30.1      Sec. 6.  [ADDITIONS TO BELTRAMI ISLAND STATE FOREST.] 
 30.2      [89.021] [Subd. 5.] [BELTRAMI ISLAND STATE FOREST.] The 
 30.3   following areas are added to Beltrami Island State Forest: 
 30.4      (1) the Southwest Quarter of the Southeast Quarter of 
 30.5   Section 29, Township 156 North, Range 37 West, Beltrami County; 
 30.6   and 
 30.7      (2) the North Half of the Northeast Quarter; the Southwest 
 30.8   Quarter of the Northeast Quarter; and the North Half of the 
 30.9   Northwest Quarter, all in Section 17, Township 156 North, Range 
 30.10  37 West, Beltrami County. 
 30.11     Sec. 7.  [ADDITIONS TO STATE WILDLIFE MANAGEMENT AREAS.] 
 30.12     Subdivision 1.  [97A.133] [Subd. 34.] [LEE WILDLIFE 
 30.13  MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
 30.14  to Lee Wildlife Management Area:  the Southwest Quarter of the 
 30.15  Northwest Quarter of Section 35, Township 155 North, Range 38 
 30.16  West, Beltrami County. 
 30.17     Subd. 2.  [97A.133] [Subd. 44.] [RED LAKE WILDLIFE 
 30.18  MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
 30.19  to Red Lake Wildlife Management Area:  the Northeast Quarter of 
 30.20  Section 28, Township 155 North, Range 32 West, Beltrami County. 
 30.21     Subd. 3.  [97A.133] [Subd. 50.] [SAW-WHET WILDLIFE 
 30.22  MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
 30.23  to Saw-Whet Wildlife Management Area:  the Southwest Quarter of 
 30.24  the Southwest Quarter; and the Southwest Quarter of the 
 30.25  Southeast Quarter, all in Section 8, Township 155 North, Range 
 30.26  37 West, Beltrami County. 
 30.27     Sec. 8.  [EFFECTIVE DATE.] 
 30.28     Sections 1 to 7 are effective July 1, 2004.