1.1 	A bill for an act
1.2 	relating to natural resources; providing for land donor appraisal reimbursement; 
1.3 	providing for acquisition of land for certain facilities; modifying certain 
1.4 	definitions; modifying forest services provided to private owners; granting 
1.5 	authority to establish state forest user fees; modifying the State Timber Act; 
1.6 	eliminating the requirement for a comprehensive forest resource management 
1.7 	plan; amending Minnesota Statutes 2004, sections 84.085, subdivision 1; 
1.8 	88.79, subdivision 1; 90.14; 90.151, subdivisions 1, 6, by adding a subdivision; 
1.9 	103I.005, subdivision 9; proposing coding for new law in Minnesota Statutes, 
1.10 	chapters 85; 89; 90; repealing Minnesota Statutes 2004, section 89.011, 
1.11 	subdivisions 1, 2, 3, 6.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2004, section 84.085, subdivision 1, is amended to read:
1.14 		Subdivision 1.Authority. (a) The commissioner of natural resources may accept for 
1.15 	and on behalf of the state any gift, bequest, devise, or grants of lands or interest in lands or 
1.16 	personal property of any kind or of money tendered to the state for any purpose pertaining 
1.17 	to the activities of the department or any of its divisions. Any money so received is hereby 
1.18 	appropriated and dedicated for the purpose for which it is granted. Lands and interests in 
1.19 	lands so received may be sold or exchanged as provided in chapter 94.
1.20 	(b) When the commissioner of natural resources accepts lands or interests in land, 
1.21 	the commissioner may reimburse the donor for costs incurred to obtain an appraisal needed 
1.22 	for tax reporting purposes. If the state pays the donor for a portion of the value of the 
1.23 	lands or interests in lands that are donated, the reimbursement for appraisal costs shall not 
1.24 	exceed $1,500. If the donor receives no payment from the state for the lands or interests in 
1.25 	lands that are donated, the reimbursement for appraisal costs shall not exceed $5,000.
1.26 	(b)(c) The commissioner of natural resources, on behalf of the state, may accept and 
1.27 	use grants of money or property from the United States or other grantors for conservation 
2.1 	purposes not inconsistent with the laws of this state. Any money or property so received 
2.2 	is hereby appropriated and dedicated for the purposes for which it is granted, and shall 
2.3 	be expended or used solely for such purposes in accordance with the federal laws and 
2.4 	regulations pertaining thereto, subject to applicable state laws and rules as to manner 
2.5 	of expenditure or use providing that the commissioner may make subgrants of any 
2.6 	money received to other agencies, units of local government, private individuals, private 
2.7 	organizations, and private nonprofit corporations. Appropriate funds and accounts shall be 
2.8 	maintained by the commissioner of finance to secure compliance with this section.
2.9 	(c) (d) The commissioner may accept for and on behalf of the permanent school fund 
2.10 	a donation of lands, interest in lands, or improvements on lands. A donation so received 
2.11 	shall become state property, be classified as school trust land as defined in section  92.025, 
2.12 	and be managed consistent with section  127A.31. 

2.13 	Sec. 2. [85.0145] ACQUISITION OF LAND FOR FACILITIES.
2.14 	The commissioner of natural resources may acquire interests in land by gift, 
2.15 	purchase, or lease for facilities outside the boundaries of state parks, state recreation areas, 
2.16 	or state waysides that are needed for the management of state parks, state recreation areas, 
2.17 	or state waysides established under sections 85.012 and 85.013.

2.18 	Sec. 3. Minnesota Statutes 2004, section 88.79, subdivision 1, is amended to read:
2.19 		Subdivision 1.Employment of competent foresters; service to private owners.
 2.20 	The commissioner of natural resources may employ competent foresters to furnish owners 
2.21 	of forest lands within the state of Minnesota owning respectively not exceedingwho own 
2.22 	not more than 1,000 acres of suchforest land, forest management services consisting of:
2.23 	(1) advice in management and protection of timber, including written stewardship 
2.24 	and forest management plans;
2.25 	(2) selection and marking of timber to be cut,;
2.26 	(3) measurement of products,;
2.27 	(4) aid in marketing harvested products,;
2.28 	(5) provision of tree-planting equipment; and 
2.29 	(6) such other services as the commissioner of natural resources deems necessary or 
2.30 	advisable to promote maximum sustained yield of timber upon such forest lands.

2.31 	Sec. 4. [89.22] USES OF STATE FOREST LANDS; FEES.
2.32 		Subdivision 1.Establishing fees. Notwithstanding section 16A.1283, the 
2.33 	commissioner may, by written order published in the State Register, establish fees 
3.1 	providing for the use of state forest lands, including: motorcycle, snowmobile, and sports 
3.2 	car rallies, races, or enduros; orienteering trials; group campouts that do not occur at 
3.3 	designated group camps; dog sled races; dog trials; large horse trail rides; and commercial 
3.4 	uses. The fees are not subject to the rulemaking provisions of chapter 14 and section 
3.5 	14.386 does not apply.
3.6 		Subd. 2.Receipts to natural resources fund. Fees collected under subdivision 1 
3.7 	shall be credited to a forest land use account in the natural resources fund.

3.8 	Sec. 5. Minnesota Statutes 2004, section 90.14, is amended to read:
3.9 	90.14 AUCTION SALE PROCEDURE.
3.10 	(a) All state timber shall be offered and sold by the same unit of measurement as it 
3.11 	was appraised. The sale shall be made to the person who (1) bids the highest price for all 
3.12 	the several kinds of timber as advertised, or (2) if unsold at public auction, to the person 
3.13 	who purchases at any subsequent sale authorized under section 90.101, subdivision 1. No 
3.14 	tract shall be sold to any person other than the purchaser in whose name the bid was made.
3.15 	The commissioner may refuse to approve any and all bids received and cancel a sale of 
3.16 	state timber for good and sufficient reasons.
3.17 	(b) The purchaser at any sale of timber shall, immediately upon the approval of the 
3.18 	bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under 
3.19 	section 90.101, subdivision 1, pay to the commissioner a down payment of 15 percent 
3.20 	of the appraised value. In case any purchaser fails to make such payment, the purchaser 
3.21 	shall be liable therefor to the state in a civil action, and the commissioner may reoffer the 
3.22 	timber for sale as though no bid or sale under section 90.101, subdivision 1, therefor 
3.23 	had been made.
3.24 	(c) In lieu of the scaling of state timber required by this chapter, a purchaser of 
3.25 	state timber may, at the time of payment by the purchaser to the commissioner of 15 
3.26 	percent of the appraised value, elect in writing on a form prescribed by the attorney 
3.27 	general to purchase a permit based solely on the appraiser's estimate of the volume of 
3.28 	timber described in the permit, provided that the commissioner has expressly designated 
3.29 	the availability of such option for that tract on the list of tracts available for sale as 
3.30 	required under section 90.101. A purchaser who elects in writing on a form prescribed 
3.31 	by the attorney general to purchase a permit based solely on the appraiser's estimate of 
3.32 	the volume of timber described on the permit does not have recourse to the provisions 
3.33 	of section 90.281.
3.34 	(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall 
3.35 	be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 
4.1 	percent of the appraised value within ten business days of receiving a written award notice. 
4.2 	If a purchaser fails to make the down payment, the purchaser is liable for the payment to 
4.3 	the state and the commissioner may offer the timber for sale to the next highest bidder 
4.4 	as though no higher bid had been made.
4.5 	(e) Except as otherwise provided by law, at the time the purchaser signs a permit 
4.6 	issued under section 90.151, the purchaser shall make a bid guarantee payment to the 
4.7 	commissioner in an amount equal to 15 percent of the total purchase price of the permit 
4.8 	less the down payment amount required by paragraph (b). If the bid guarantee payment is 
4.9 	not submitted with the signed permit, no harvesting may occur, the permit cancels, and the 
4.10 	down payment for timber forfeits to the state. The bid guarantee payment forfeits to the 
4.11 	state if the purchaser and successors in interest fail to execute an effective permit.

4.12 	Sec. 6. [90.145] PURCHASER QUALIFICATIONS AND REGISTRATION.
4.13 		Subdivision 1.Purchaser qualifications. (a) In addition to any other requirements 
4.14 	imposed by this chapter, the purchaser of a state timber permit issued under section 90.151 
4.15 	must meet the requirements in paragraphs (b) to (d).
4.16 	(b) The purchaser and the purchaser's agents, employees, subcontractors, and 
4.17 	assigns must comply with general industry safety standards for logging adopted by the 
4.18 	commissioner of labor and industry under chapter 182. The commissioner of natural 
4.19 	resources shall require a purchaser to provide proof of compliance with the general 
4.20 	industry safety standards before the start of harvesting operations on any permit.
4.21 	(c) The purchaser and the purchaser's agents, subcontractors, and assigns must 
4.22 	comply with the mandatory insurance requirements of chapter 176. The commissioner 
4.23 	shall require a purchaser to provide a copy of the proof of insurance required by section 
4.24 	176.130 before the start of harvesting operations on any permit.
4.25 	(d) Before the start of harvesting operations on any permit, the purchaser must 
4.26 	certify that a foreperson or other designated employee who has a current certificate of 
4.27 	completion from the Minnesota logger education program (MLEP), the Wisconsin Forest 
4.28 	Industry Safety and Training Alliance (FISTA), or any similar program acceptable to the 
4.29 	commissioner, is supervising active logging operations.
4.30 		Subd. 2.Purchaser preregistration. To facilitate the sale of permits issued under 
4.31 	section 90.151, the commissioner may establish a purchaser preregistration system. 
4.32 	Any system implemented by the commissioner shall be limited in scope to only that 
4.33 	information that is required for the efficient administration of the purchaser qualification 
4.34 	provisions of this chapter and shall conform with the requirements of chapter 13.

5.1 	Sec. 7. Minnesota Statutes 2004, section 90.151, subdivision 1, is amended to read:
5.2 		Subdivision 1.Issuance; expiration. (a) Following receipt of the down payment 
5.3 	for state timber required under section 90.14 or 90.191, the commissioner shall issue a 
5.4 	numbered permit to the purchaser, in a form approved by the attorney general, by the 
5.5 	terms of which the purchaser shall be authorized to enter upon the land, and to cut and 
5.6 	remove the timber therein described as designated for cutting in the report of the state 
5.7 	appraiser, according to the provisions of this chapter. The permit shall be correctly dated 
5.8 	and executed by the commissioner and signed by the purchaser. If a permit is not signed 
5.9 	by the purchaser within 60 days from the date of purchase, the permit cancels and the 
5.10 	down payment for timber required under section 90.14 forfeits to the state.
5.11 	(b) The permit shall expire no later than five years after the date of sale as the 
5.12 	commissioner shall specify or as specified under section 90.191, and the timber shall 
5.13 	be cut within the time specified therein. All cut timber, equipment, and buildings not 
5.14 	removed from the land within 90 days after expiration of the permit shall become the 
5.15 	property of the state.
5.16 	(c) The commissioner may grant an additional period of time not to exceed 120 days 
5.17 	for the removal of cut timber, equipment, and buildings upon receipt of such request by 
5.18 	the permit holder for good and sufficient reasons. The commissioner may grant a second 
5.19 	period of time not to exceed 120 days for the removal of cut timber, equipment, and 
5.20 	buildings upon receipt of a request by the permit holder for hardship reasons only.
5.21 	(d) No permit shall be issued to any person other than the purchaser in whose name 
5.22 	the bid was made.

5.23 	Sec. 8. Minnesota Statutes 2004, section 90.151, subdivision 6, is amended to read:
5.24 		Subd. 6.Notice and approval required. The permit shall provide that the permit 
5.25 	holder shall not start cutting any state timber nor clear building sites nor logging roads until 
5.26 	the commissioner has been notified and has given prior approval to such cutting operations.
5.27 	Approval shall not be granted until the permit holder has completed a presale conference 
5.28 	with the state appraiser designated to supervise the cutting. The permit holder shall also 
5.29 	give prior notice whenever permit operations are to be temporarily halted, whenever 
5.30 	permit operations are to be resumed, and when permit operations are to be completed.

5.31 	Sec. 9. Minnesota Statutes 2004, section 90.151, is amended by adding a subdivision 
5.32 	to read:
5.33 		Subd. 15.Liquidated damages. The permit may include a schedule of liquidated 
5.34 	damage charges for breach of permit terms by the permit holder. The damage charges shall 
6.1 	be limited to amounts that are reasonable based on the anticipated or actual harm caused 
6.2 	by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of 
6.3 	otherwise obtaining an adequate remedy.

6.4 	Sec. 10. Minnesota Statutes 2004, section 103I.005, subdivision 9, is amended to read:
6.5 		Subd. 9.Exploratory boring. "Exploratory boring" means a surface drilling done 
6.6 	to explore or prospect for oil, natural gas, apatite, diamonds, graphite, gemstones, kaolin 
6.7 	clay, and or metallic minerals, including iron, copper, zinc, lead, gold, silver, titanium, 
6.8 	vanadium, nickel, cadmium, molybdenum, chromium, manganese, cobalt, zirconium, 
6.9 	beryllium, thorium, uranium, aluminum, platinum, palladium, radium, tantalum, tin, and 
6.10 	niobium, and a drilling or boring for petroleum.

6.11 	Sec. 11.  REPEALER.
 6.12 	Minnesota Statutes 2004, section 89.011, subdivisions 1, 2, 3, and 6, are repealed.