1.1 	A bill for an act
1.2 	relating to natural resources; modifying disposition
1.3 	of proceeds from sale of tax-forfeited lands bordering
1.4 	public waters; creating the riparian land enhancement
1.5 	account; appropriating money; amending Minnesota
1.6 	Statutes 2004, section 282.09, by adding a
1.7 	subdivision; proposing coding for new law in Minnesota
1.8 	Statutes, chapter 84.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. [84.976] RIPARIAN LAND ENHANCEMENT ACCOUNT.
1.11 	The riparian land enhancement account is created as an
1.12 	account in the natural resources fund.  Interest accruing from
1.13 	investment of the account shall be credited to the account.

1.14 	Sec. 2. Minnesota Statutes 2004, section 282.09, is
1.15 	amended by adding a subdivision to read:
1.16 		Subd. 3.Sale of land bordering public
1.17 	waters. Notwithstanding subdivision 1, when money is generated
1.18 	from the sale of tax-forfeited land that borders public waters,
1.19 	the county auditor shall place only that portion of the money
1.20 	into the forfeited tax sale fund that is directly related to
1.21 	conducting the sale, including the costs of appraising the land,
1.22 	conducting any necessary land surveys, and work associated with
1.23 	clearing title to the land.  All remaining money received from
1.24 	the sale shall be paid into the riparian land enhancement
1.25 	account of the natural resources fund.  Money accruing and
1.26 	credited to the riparian land enhancement account under this
1.27 	subdivision is appropriated to the commissioner of natural
2.1 	resources to issue grants for improving water resources in the
2.2 	vicinity of the land that is sold.  Grant projects may include,
2.3 	but are not limited to, creation or enhancement of public water
2.4 	accesses, shoreland and aquatic habitat improvement, water
2.5 	quality improvement, or watershed enhancements that would
2.6 	directly impact water resources in proximity to the former
2.7 	tax-forfeited land.  Appropriations under this subdivision
2.8 	remain available until spent.