1.1                          A bill for an act 
  1.2             relating to natural resources; modifying the forest 
  1.3             resources Interagency Information Cooperative; 
  1.4             modifying the State Timber Act; modifying provisions 
  1.5             for timber sales on tax-forfeited land; amending 
  1.6             Minnesota Statutes 2002, sections 89A.09, subdivision 
  1.7             1; 90.02; 90.181, subdivision 2; 90.191, subdivision 
  1.8             2, by adding a subdivision; 90.252; 282.04, 
  1.9             subdivision 1; Minnesota Statutes 2003 Supplement, 
  1.10            sections 90.101, subdivision 1; 90.14; 90.151, 
  1.11            subdivision 1; repealing Minnesota Statutes 2003 
  1.12            Supplement, section 90.191, subdivisions 3, 4. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 89A.09, 
  1.15  subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [ESTABLISHMENT.] The commissioner dean of 
  1.17  the University of Minnesota, College of Natural Resources, shall 
  1.18  be encouraged to coordinate the establishment of an Interagency 
  1.19  Information Cooperative.  Members of the cooperative must 
  1.20  include: 
  1.21     (1) the University of Minnesota, College of Natural 
  1.22  Resources; 
  1.23     (2) the University of Minnesota, Natural Resources Research 
  1.24  Institute; 
  1.25     (3) the department; 
  1.26     (2) (4) the Land Management Information Center; 
  1.27     (3) (5) the Minnesota Association of County Land 
  1.28  Commissioners; 
  1.29     (4) (6) the United States Forest Service; and 
  2.1      (5) (7) other organizations as deemed appropriate by the 
  2.2   commissioner members. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 90.02, is amended 
  2.4   to read: 
  2.5      90.02 [CITATION, STATEMENT OF POLICY.] 
  2.6      This chapter may be cited as the State Timber Act.  
  2.7      It is the intent and desire of the Minnesota legislature to 
  2.8   provide equal opportunity for all segments of our society to 
  2.9   participate in the sale process; and attempt to prevent the 
  2.10  purchase or acquisition of excessive volumes of the state's 
  2.11  timber resources by any one individual or corporation.  
  2.12     The Department of Natural Resources is directed to enact 
  2.13  rules commissioner shall establish specific timber sale 
  2.14  allocation standards to reach this objective; including 
  2.15  provision for sale of all timber species by both the informal 
  2.16  and the auction sale each method of sale specified in this 
  2.17  chapter; and maintaining reasonable proportions of volume in 
  2.18  each method of sale.  The standards shall be included in each 
  2.19  edition of the timber sales manual published by the 
  2.20  commissioner.  The standards are not subject to the rulemaking 
  2.21  provisions of chapter 14 and section 14.386 does not apply. 
  2.22     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  2.23  90.101, subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [SALE REQUIREMENTS.] The commissioner may 
  2.25  sell the timber on any tract of state land in lots not exceeding 
  2.26  6,000 cords in volume and may determine the number of sections 
  2.27  or fractional sections of land to be included in the permit area 
  2.28  covered by any one permit issued to the purchaser of timber on 
  2.29  state lands, or in any one contract or other instrument relating 
  2.30  thereto.  No timber shall be sold, except (1) to the highest 
  2.31  responsible bidder at public auction, or (2) if unsold at public 
  2.32  auction the commissioner may offer the timber for private sale 
  2.33  for a period of no more than six months after the public auction 
  2.34  to any person who pays the appraised value for the timber.  The 
  2.35  minimum price shall be the appraised value as fixed by the 
  2.36  report of the state appraiser.  Sales may include tracts in more 
  3.1   than one contiguous county or forestry administrative area and 
  3.2   shall be held either in the county or forestry administrative 
  3.3   area in which the tract is located or in an adjacent county or 
  3.4   forestry administrative area that is nearest the tract offered 
  3.5   for sale or that is most accessible to potential bidders.  In 
  3.6   adjoining counties or forestry administrative areas, sales may 
  3.7   not be held less than two hours apart. 
  3.8      Sec. 4.  Minnesota Statutes 2003 Supplement, section 90.14, 
  3.9   is amended to read: 
  3.10     90.14 [AUCTION SALE PROCEDURE.] 
  3.11     (a) All state timber shall be offered and sold by the same 
  3.12  unit of measurement as it was appraised.  The sale shall be made 
  3.13  to the person who (1) bids the highest price for all the several 
  3.14  kinds of timber as advertised, or (2) if unsold at public 
  3.15  auction, to the person who purchases at any subsequent sale 
  3.16  authorized under section 90.101, subdivision 1.  The 
  3.17  commissioner may refuse to approve any and all bids received and 
  3.18  cancel a sale of state timber for good and sufficient reasons.  
  3.19     (b) The purchaser at any sale of timber shall, immediately 
  3.20  upon the approval of the bid, or, if unsold at public auction, 
  3.21  at the time of purchase at a subsequent sale under section 
  3.22  90.101, subdivision 1, pay to the commissioner a down payment of 
  3.23  15 percent of the appraised value.  In case any purchaser fails 
  3.24  to make such payment, the purchaser shall be liable therefor to 
  3.25  the state in a civil action, and the commissioner may reoffer 
  3.26  the timber for sale as though no bid or sale under section 
  3.27  90.101, subdivision 1, therefor had been made. 
  3.28     (c) In lieu of the scaling of state timber required by this 
  3.29  chapter, a purchaser of state timber may, at the time of payment 
  3.30  by the purchaser to the commissioner of 15 percent of the 
  3.31  appraised value, elect in writing on a form prescribed by the 
  3.32  attorney general to purchase a permit based solely on the 
  3.33  appraiser's estimate of the volume of timber described in the 
  3.34  permit, provided that the commissioner has expressly designated 
  3.35  the availability of such option for that tract on the list of 
  3.36  tracts available for sale as required under section 90.101.  A 
  4.1   purchaser who elects in writing on a form prescribed by the 
  4.2   attorney general to purchase a permit based solely on the 
  4.3   appraiser's estimate of the volume of timber described on the 
  4.4   permit does not have recourse to the provisions of section 
  4.5   90.281. 
  4.6      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  4.7   90.151, subdivision 1, is amended to read: 
  4.8      Subdivision 1.  [ISSUANCE; EXPIRATION.] (a) Following 
  4.9   receipt of the down payment for state timber sold at public 
  4.10  auction required under section 90.14 or 90.191, the commissioner 
  4.11  shall issue a numbered permit to the purchaser, in a form 
  4.12  approved by the attorney general, by the terms of which the 
  4.13  purchaser shall be authorized to enter upon the land, and to cut 
  4.14  and remove the timber therein described as designated for 
  4.15  cutting in the report of the state appraiser, according to the 
  4.16  provisions of this chapter.  The permit shall be correctly dated 
  4.17  and executed by the commissioner and signed by the purchaser.  
  4.18  If a permit is not signed by the purchaser within 60 days from 
  4.19  the date of purchase, the permit cancels and the down payment 
  4.20  for timber required under section 90.14 forfeits to the state. 
  4.21     (b) The permit shall expire no later than five years after 
  4.22  the date of sale as the commissioner shall specify or as 
  4.23  specified under section 90.191, and the timber shall be cut 
  4.24  within the time specified therein.  All cut timber, equipment, 
  4.25  and buildings not removed from the land within 90 days after 
  4.26  expiration of the permit shall become the property of the state. 
  4.27     (c) The commissioner may grant an additional period of time 
  4.28  not to exceed 120 days for the removal of cut timber, equipment, 
  4.29  and buildings upon receipt of such request by the permit holder 
  4.30  for good and sufficient reasons.  The commissioner may grant a 
  4.31  second period of time not to exceed 120 days for the removal of 
  4.32  cut timber, equipment, and buildings upon receipt of a request 
  4.33  by the permit holder for hardship reasons only. 
  4.34     (d) No permit shall be issued to any person other than the 
  4.35  purchaser in whose name the bid was made.  
  4.36     Sec. 6.  Minnesota Statutes 2002, section 90.181, 
  5.1   subdivision 2, is amended to read: 
  5.2      Subd. 2.  [DEFERRED PAYMENTS.] (a) If the amount of the 
  5.3   statement is not paid within 30 days of the date thereof, it 
  5.4   shall bear interest at the rate determined pursuant to section 
  5.5   16A.124, except that the purchaser shall not be required to pay 
  5.6   interest that totals $1 or less.  If the amount is not paid 
  5.7   within 60 days, the commissioner shall place the account in the 
  5.8   hands of the attorney general commissioner of revenue according 
  5.9   to chapter 16D, who shall proceed to collect the same.  When 
  5.10  deemed in the best interests of the state, the commissioner 
  5.11  shall take possession of the timber for which an amount is due 
  5.12  wherever it may be found and sell the same informally or at 
  5.13  public auction after giving reasonable notice.  
  5.14     (b) The proceeds of the sale shall be applied, first, to 
  5.15  the payment of the expenses of seizure and sale; and, second, to 
  5.16  the payment of the amount due for the timber, with interest; and 
  5.17  the surplus, if any, shall belong to the state; and, in case a 
  5.18  sufficient amount is not realized to pay these amounts in full, 
  5.19  the balance shall be collected by the attorney general.  Neither 
  5.20  payment of the amount, nor the recovery of judgment therefor, 
  5.21  nor satisfaction of the judgment, nor the seizure and sale of 
  5.22  timber, shall release the sureties on any bond given pursuant to 
  5.23  this chapter, or preclude the state from afterwards claiming 
  5.24  that the timber was cut or removed contrary to law and 
  5.25  recovering damages for the trespass thereby committed, or from 
  5.26  prosecuting the offender criminally.  
  5.27     Sec. 7.  Minnesota Statutes 2002, section 90.191, 
  5.28  subdivision 2, is amended to read: 
  5.29     Subd. 2.  [TIME FRAME FOR CUTTING AND REMOVAL.] Upon 
  5.30  receipt of a down payment for the full appraised value, the 
  5.31  commissioner may issue a permit according to section 90.151 to 
  5.32  cut timber within the time period specified by the commissioner, 
  5.33  which shall not exceed two years from the date of sale under any 
  5.34  supervision and provisions the commissioner deems advisable.  
  5.35  All cut timber, equipment, and buildings not removed from the 
  5.36  land within 90 days after expiration of the permit shall become 
  6.1   the property of the state.  The commissioner may grant an 
  6.2   additional period of not to exceed 120 days for the removal of 
  6.3   cut timber, equipment, and buildings upon receipt of a request 
  6.4   by the permit holder for good and sufficient reasons.  The 
  6.5   commissioner may grant a second period of time not to exceed 120 
  6.6   days for the removal of cut timber, equipment, and buildings 
  6.7   upon receipt of a request by the permit holder for hardship 
  6.8   reasons only. 
  6.9      Sec. 8.  Minnesota Statutes 2002, section 90.191, is 
  6.10  amended by adding a subdivision to read: 
  6.11     Subd. 5.  [ADDITIONAL PROCEDURE.] The sale procedure under 
  6.12  this section is an additional alternative timber sale procedure 
  6.13  available to the commissioner and is not intended to replace 
  6.14  other authority of the commissioner to sell timber in lots of 
  6.15  500 cords or less. 
  6.16     Sec. 9.  Minnesota Statutes 2002, section 90.252, is 
  6.17  amended to read: 
  6.18     90.252 [CONSUMER SCALE OF STATE TIMBER; WEIGHT MEASUREMENT 
  6.19  SERVICES; FEES.] 
  6.20     Subdivision 1.  [CONSUMER SCALING.] The commissioner may 
  6.21  enter into an agreement with either a timber sale permittee, or 
  6.22  the purchaser of the cut products, or both, so that the scaling 
  6.23  of the cut timber and the collection of the payment for the same 
  6.24  can be consummated by the consumer.  Such an agreement shall be 
  6.25  approved as to form and content by the attorney general and 
  6.26  shall provide for a bond or cash in lieu of a bond and such 
  6.27  other safeguards as are necessary to protect the interests of 
  6.28  the state.  Such a The scaling and payment collection procedure 
  6.29  may be used for any state timber sale, except that no permittee 
  6.30  who is also the consumer shall both cut and scale the timber 
  6.31  sold unless such scaling is supervised by a state scaler. 
  6.32     Subd. 2.  [WEIGHT MEASUREMENT SERVICES; FEES.] The 
  6.33  commissioner may enter into an agreement with the owner or 
  6.34  operator of any weight scale inspected, tested, and approved 
  6.35  under chapter 239 to provide weight measurements for the scaling 
  6.36  of state timber according to section 90.251.  The agreement 
  7.1   shall be on a form prescribed by the attorney general, shall 
  7.2   become a part of the official record of any state timber permit 
  7.3   so scaled, and shall contain safeguards that are necessary to 
  7.4   protect the interests of the state.  Except as otherwise 
  7.5   provided by the commissioner, the cost of any agreement to 
  7.6   provide weight measurement of state timber shall be paid by the 
  7.7   permit holder of any state timber permit so measured and the 
  7.8   cost shall be included in the statement of the amount due for 
  7.9   the permit under section 90.181, subdivision 1. 
  7.10     Sec. 10.  Minnesota Statutes 2002, section 282.04, 
  7.11  subdivision 1, is amended to read: 
  7.12     Subdivision 1.  [TIMBER SALES; LAND LEASES AND USES.] (a) 
  7.13  The county auditor may sell timber upon any tract that may be 
  7.14  approved by the natural resources commissioner.  Such The sale 
  7.15  of timber shall be made for cash at not less than the appraised 
  7.16  value determined by the county board to the highest bidder after 
  7.17  not less than one week's published notice in an official paper 
  7.18  within the county.  Any timber offered at such the public sale 
  7.19  and not sold may thereafter be sold at private sale by the 
  7.20  county auditor at not less than the appraised value thereof, 
  7.21  until such the time as the county board may withdraw such the 
  7.22  timber from sale.  The appraised value of the timber and the 
  7.23  forestry practices to be followed in the cutting of said timber 
  7.24  shall be approved by the commissioner of natural resources.  
  7.25     (b) Payment of the full sale price of all timber sold on 
  7.26  tax-forfeited lands shall be made in cash at the time of the 
  7.27  timber sale, except in the case of oral or sealed bid auction 
  7.28  sales, the down payment shall be no less than 15 percent of the 
  7.29  appraised value, and the balance shall be paid prior to entry.  
  7.30  In the case of auction sales that are partitioned and sold as a 
  7.31  single sale with predetermined cutting blocks, the down payment 
  7.32  shall be no less than 15 percent of the appraised price of the 
  7.33  entire timber sale which may be held until the satisfactory 
  7.34  completion of the sale or applied in whole or in part to the 
  7.35  final cutting block.  The value of each separate block must be 
  7.36  paid in full before any cutting may begin in that block.  With 
  8.1   the permission of the county contract administrator the 
  8.2   purchaser may enter unpaid blocks and cut necessary timber 
  8.3   incidental to developing logging roads as may be needed to log 
  8.4   other blocks provided that no timber may be removed from an 
  8.5   unpaid block until separately scaled and paid for.  If payment 
  8.6   is provided as specified in this paragraph as security under 
  8.7   paragraph (a) and no cutting has taken place on the contract, 
  8.8   the county auditor may credit the security provided, less any 
  8.9   down payment required for an auction sale under this paragraph, 
  8.10  to any other contract issued to the contract holder by the 
  8.11  county under this chapter to which the contract holder requests 
  8.12  in writing that it be credited, provided the request and 
  8.13  transfer is made within the same calendar year as the security 
  8.14  was received. 
  8.15     (c) The county board may require final settlement on the 
  8.16  basis of a scale of cut products.  Any parcels of land from 
  8.17  which timber is to be sold by scale of cut products shall be so 
  8.18  designated in the published notice of sale above mentioned under 
  8.19  paragraph (a), in which case the notice shall contain a 
  8.20  description of such the parcels, a statement of the estimated 
  8.21  quantity of each species of timber thereon, and the appraised 
  8.22  price of each specie species of timber for 1,000 feet, per cord 
  8.23  or per piece, as the case may be.  In such those cases any bids 
  8.24  offered over and above the appraised prices shall be by 
  8.25  percentage, the percent bid to be added to the appraised price 
  8.26  of each of the different species of timber advertised on the 
  8.27  land.  The purchaser of timber from such the parcels shall pay 
  8.28  in cash at the time of sale at the rate bid for all of the 
  8.29  timber shown in the notice of sale as estimated to be standing 
  8.30  on the land, and in addition shall pay at the same rate for any 
  8.31  additional amounts which the final scale shows to have been cut 
  8.32  or was available for cutting on the land at the time of sale 
  8.33  under the terms of such the sale.  Where the final scale of cut 
  8.34  products shows that less timber was cut or was available for 
  8.35  cutting under terms of such the sale than was originally paid 
  8.36  for, the excess payment shall be refunded from the forfeited tax 
  9.1   sale fund upon the claim of the purchaser, to be audited and 
  9.2   allowed by the county board as in case of other claims against 
  9.3   the county.  No timber, except hardwood pulpwood, may be removed 
  9.4   from such the parcels of land or other designated landings until 
  9.5   scaled by a person or persons designated by the county board and 
  9.6   approved by the commissioner of natural resources.  Landings 
  9.7   other than the parcel of land from which timber is cut may be 
  9.8   designated for scaling by the county board by written agreement 
  9.9   with the purchaser of the timber.  The county board may, by 
  9.10  written agreement with the purchaser and with a consumer 
  9.11  designated by the purchaser when the timber is sold by the 
  9.12  county auditor, and with the approval of the commissioner of 
  9.13  natural resources, accept the consumer's scale of cut products 
  9.14  delivered at the consumer's landing.  No timber shall be removed 
  9.15  until fully paid for in cash.  Small amounts of timber not 
  9.16  exceeding $3,000 in appraised valuation may be sold for not less 
  9.17  than the full appraised value at private sale to individual 
  9.18  persons without first publishing notice of sale or calling for 
  9.19  bids, provided that in case of such a sale involving a total 
  9.20  appraised value of more than $200 the sale shall be made subject 
  9.21  to final settlement on the basis of a scale of cut products in 
  9.22  the manner above provided and not more than two such of the 
  9.23  sales, directly or indirectly to any individual shall be in 
  9.24  effect at one time. 
  9.25     (d) As directed by the county board, the county auditor may 
  9.26  lease tax-forfeited land to individuals, corporations or 
  9.27  organized subdivisions of the state at public or private vendue 
  9.28  sale, and at such the prices and under such the terms as the 
  9.29  county board may prescribe, for use as cottage and camp sites 
  9.30  and for agricultural purposes and for the purpose of taking and 
  9.31  removing of hay, stumpage, sand, gravel, clay, rock, marl, and 
  9.32  black dirt therefrom from the land, and for garden sites and 
  9.33  other temporary uses provided that no leases shall be for a 
  9.34  period to exceed ten years; provided, further that any leases 
  9.35  involving a consideration of more than $12,000 per year, except 
  9.36  to an organized subdivision of the state shall first be offered 
 10.1   at public sale in the manner provided herein for sale of timber. 
 10.2   Upon the sale of any such leased land, it shall remain subject 
 10.3   to the lease for not to exceed one year from the beginning of 
 10.4   the term of the lease.  Any rent paid by the lessee for the 
 10.5   portion of the term cut off by such the cancellation shall be 
 10.6   refunded from the forfeited tax sale fund upon the claim of the 
 10.7   lessee, to be audited and allowed by the county board as in case 
 10.8   of other claims against the county. 
 10.9      (e) As directed by the county board, the county auditor may 
 10.10  lease tax-forfeited land to individuals, corporations, or 
 10.11  organized subdivisions of the state at public or private vendue 
 10.12  sale, at such the prices and under such the terms as the 
 10.13  county board may prescribe, for the purpose of taking and 
 10.14  removing for use for road construction and other purposes 
 10.15  tax-forfeited stockpiled iron-bearing material.  The county 
 10.16  auditor must determine that the material is needed and suitable 
 10.17  for use in the construction or maintenance of a road, tailings 
 10.18  basin, settling basin, dike, dam, bank fill, or other works on 
 10.19  public or private property, and that the use would be in the 
 10.20  best interests of the public.  No lease shall exceed ten years.  
 10.21  The use of a stockpile for these purposes must first be approved 
 10.22  by the commissioner of natural resources.  The request shall be 
 10.23  deemed approved unless the requesting county is notified to the 
 10.24  contrary by the commissioner of natural resources within six 
 10.25  months after receipt of a request for approval for use of a 
 10.26  stockpile.  Once use of a stockpile has been approved, the 
 10.27  county may continue to lease it for these purposes until 
 10.28  approval is withdrawn by the commissioner of natural resources. 
 10.29     (f) The county auditor, with the approval of the county 
 10.30  board is authorized to grant permits, licenses, and leases to 
 10.31  tax-forfeited lands for the depositing of stripping, lean ores, 
 10.32  tailings, or waste products from mines or ore milling plants, 
 10.33  upon such the conditions and for such the consideration and for 
 10.34  such the period of time, not exceeding 15 years, as the county 
 10.35  board may determine; said.  The permits, licenses, or leases to 
 10.36  be are subject to approval by the commissioner of natural 
 11.1   resources. 
 11.2      (g) Any person who removes any timber from tax-forfeited 
 11.3   land before said timber has been scaled and fully paid for as 
 11.4   provided in this subdivision is guilty of a misdemeanor. 
 11.5      (h) The county auditor may, with the approval of the county 
 11.6   board, and without first offering at public sale, grant leases, 
 11.7   for a term not exceeding 25 years, for the removal of peat from 
 11.8   tax-forfeited lands upon such the terms and conditions as the 
 11.9   county board may prescribe.  Any lease for the removal of peat 
 11.10  from tax-forfeited lands must first be reviewed and approved by 
 11.11  the commissioner of natural resources if the lease covers 320 or 
 11.12  more acres.  No lease for the removal of peat shall be made by 
 11.13  the county auditor pursuant to this section without first 
 11.14  holding a public hearing on the auditor's intention to lease.  
 11.15  One printed notice in a legal newspaper in the county at least 
 11.16  ten days before the hearing, and posted notice in the courthouse 
 11.17  at least 20 days before the hearing shall be given of the 
 11.18  hearing. 
 11.19     (i) Notwithstanding any provision of paragraph (c) to the 
 11.20  contrary, the St. Louis County auditor may, at the discretion of 
 11.21  the county board, sell timber to the party who bids the highest 
 11.22  price for all the several kinds of timber, as provided for sales 
 11.23  by the commissioner of natural resources under section 90.14.  
 11.24  Bids offered over and above the appraised price need not be 
 11.25  applied proportionately to the appraised price of each of the 
 11.26  different species of timber. 
 11.27     (j) In lieu of any payment or deposit required in paragraph 
 11.28  (b), as directed by the county board and under terms set by the 
 11.29  county board, the county auditor may accept an irrevocable bank 
 11.30  letter of credit in the amount equal to the amount otherwise 
 11.31  determined in paragraph (b), exclusive of the down payment 
 11.32  required for an auction sale in paragraph (b).  If an 
 11.33  irrevocable bank letter of credit is provided under this 
 11.34  paragraph, at the written request of the purchaser, the county 
 11.35  may periodically allow the bank letter of credit to be reduced 
 11.36  by an amount proportionate to the value of timber that has been 
 12.1   harvested and for which the county has received payment.  The 
 12.2   remaining amount of the bank letter of credit after a reduction 
 12.3   under this paragraph must not be less than 20 percent of the 
 12.4   value of the timber purchased.  If no cutting of timber has 
 12.5   taken place on the contract for which a letter of credit has 
 12.6   been provided, the county may allow the transfer of the letter 
 12.7   of credit to any other contract issued to the contract holder by 
 12.8   the county under this chapter to which the contract holder 
 12.9   requests in writing that it be credited. 
 12.10     Sec. 11.  [REPEALER.] 
 12.11     Minnesota Statutes 2003 Supplement, section 90.191, 
 12.12  subdivisions 3 and 4, are repealed.