<a id="pl.1.3"></a><var>1.3</var>proposing coding for new law in Minnesota Statutes, chapter 94.<br/>
<a id="pl.1.4"></a><var>1.4</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.5"></a><var>1.5</var>    Section 1. <b>[94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE </b><br/>
<a id="pl.1.6"></a><var>1.6</var><b>STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.</b><br/>
<a id="pl.1.7"></a><var>1.7</var>    Subdivision 1. <b>Purpose and scope.</b> (a) The purpose of this section is to expedite the <br/>
<a id="pl.1.8"></a><var>1.8</var>exchange of public land ownership. Consolidation of public land reduces management <br/>
<a id="pl.1.9"></a><var>1.9</var>costs and aids in the reduction of forest fragmentation.<br/>
<a id="pl.1.10"></a><var>1.10</var>(b) This section applies to exchanges of land between the state and a governmental <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347 <br/>
<a id="pl.1.12"></a><var>1.12</var>apply only to the extent specified in this section.<br/>
<a id="pl.1.13"></a><var>1.13</var>    Subd. 2. <b>Classes of land; definitions.</b> The classes of public land that may be <br/>
<a id="pl.1.14"></a><var>1.14</var>involved in an expedited exchange under this section are:<br/>
<a id="pl.1.15"></a><var>1.15</var>(1) Class 1 land, which for the purpose of this section is Class A land as defined in <br/>
<a id="pl.1.16"></a><var>1.16</var>section 94.342, subdivision 1, except for:<br/>
<a id="pl.1.17"></a><var>1.17</var>(i) school trust land as defined in section 92.025; and<br/>
<a id="pl.1.18"></a><var>1.18</var>(ii) university land granted to the state by acts of Congress;<br/>
<a id="pl.1.19"></a><var>1.19</var>(2) Class 2 land, which for the purpose of this section is Class B land as defined in <br/>
<a id="pl.1.20"></a><var>1.20</var>section 94.342, subdivision 2; and<br/>
<a id="pl.1.21"></a><var>1.21</var>(3) Class 3 land, which for the purpose of this section is all land owned in fee by <br/>
<a id="pl.1.22"></a><var>1.22</var>a governmental subdivision of the state.<br/>
<a id="pl.1.23"></a><var>1.23</var>    Subd. 3. <b>Valuation of land.</b> (a) In an exchange of Class 1 land for Class 2 or 3 land, <br/>
<a id="pl.1.24"></a><var>1.24</var>the value of all the land shall be determined by the commissioner of natural resources. In <br/>
<a id="pl.2.1"></a><var>2.1</var>an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined <br/>
<a id="pl.2.2"></a><var>2.2</var>by the county board of the county in which the land lies. To determine the value of the <br/>
<a id="pl.2.3"></a><var>2.3</var>land, the parties to the exchange may cause the land to be appraised, utilize the valuation <br/>
<a id="pl.2.4"></a><var>2.4</var>process provided under section 84.0272, subdivision 3, or obtain a market analysis from a <br/>
<a id="pl.2.5"></a><var>2.5</var>qualified real estate broker. Merchantable timber value must be determined and considered <br/>
<a id="pl.2.6"></a><var>2.6</var>in finalizing valuation of the lands.<br/>
<a id="pl.2.7"></a><var>2.7</var>(b) All lands exchanged under this section shall be exchanged only for lands of <br/>
<a id="pl.2.8"></a><var>2.8</var>at least substantially equal value. For the purposes of this subdivision, "substantially <br/>
<a id="pl.2.9"></a><var>2.9</var>equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b). <br/>
<a id="pl.2.10"></a><var>2.10</var>No payment is due either party if the lands are of substantially equal value but are not <br/>
<a id="pl.2.11"></a><var>2.11</var>of the same value.<br/>
<a id="pl.2.12"></a><var>2.12</var>    Subd. 4. <b>Title.</b> Title to the land must be examined to the extent necessary for the <br/>
<a id="pl.2.13"></a><var>2.13</var>parties to determine that the title is good, with any encumbrances identified. The parties to <br/>
<a id="pl.2.14"></a><var>2.14</var>the exchange may utilize title insurance to aid in the determination.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 5. <b>Approval by Land Exchange Board.</b> All expedited land exchanges <br/>
<a id="pl.2.16"></a><var>2.16</var>under this section, and the terms and conditions of the exchanges, require the unanimous <br/>
<a id="pl.2.17"></a><var>2.17</var>approval of the Land Exchange Board.<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 6. <b>Conveyance.</b> (a) Conveyance of Class 1 land given in exchange shall be <br/>
<a id="pl.2.19"></a><var>2.19</var>made by deed executed by the commissioner of natural resources in the name of the <br/>
<a id="pl.2.20"></a><var>2.20</var>state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the <br/>
<a id="pl.2.21"></a><var>2.21</var>commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by <br/>
<a id="pl.2.22"></a><var>2.22</var>a deed executed by the governing body in the name of the governing authority.<br/>
<a id="pl.2.23"></a><var>2.23</var>(b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class <br/>
<a id="pl.2.24"></a><var>2.24</var>2 or 3 land shall first be delivered to the commissioner of natural resources. Following <br/>
<a id="pl.2.25"></a><var>2.25</var>the recording of the deed, the commissioner of natural resources shall deliver the deed <br/>
<a id="pl.2.26"></a><var>2.26</var>conveying the Class 1 land.<br/>
<a id="pl.2.27"></a><var>2.27</var>(c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land <br/>
<a id="pl.2.28"></a><var>2.28</var>shall first be delivered to the county auditor. Following the recording of the deed, the <br/>
<a id="pl.2.29"></a><var>2.29</var>commissioner of revenue shall deliver the deed conveying the Class 2 land.<br/>
<a id="pl.2.30"></a><var>2.30</var>(d) All deeds shall be recorded or registered in the county in which the lands lie.<br/>
<a id="pl.2.31"></a><var>2.31</var>    Subd. 7. <b>Reversionary interest; mineral and water power rights and other </b><br/>
<a id="pl.2.32"></a><var>2.32</var><b>reservations.</b> (a) All deeds conveying land given in an expedited land exchange under <br/>
<a id="pl.2.33"></a><var>2.33</var>this section shall include a reverter that provides that title to the land automatically reverts <br/>
<a id="pl.2.34"></a><var>2.34</var>to the conveying governmental unit if:<br/>
<a id="pl.2.35"></a><var>2.35</var>(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of <br/>
<a id="pl.2.36"></a><var>2.36</var>the land within 40 years of the date of the deed conveying ownership; and<br/>
<a id="pl.3.1"></a><var>3.1</var>(2) there is no prior written approval for such transfer from the conveying <br/>
<a id="pl.3.2"></a><var>3.2</var>governmental unit. The authority for granting approval is the commissioner of natural <br/>
<a id="pl.3.3"></a><var>3.3</var>resources for former Class 1 land, the county board for former Class 2 land, and the <br/>
<a id="pl.3.4"></a><var>3.4</var>governing body for former Class 3 land.<br/>
<a id="pl.3.5"></a><var>3.5</var>(b) Class 1 land given in exchange is subject to the reservation provisions of section <br/>
<a id="pl.3.6"></a><var>3.6</var>94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation <br/>
<a id="pl.3.7"></a><var>3.7</var>provisions of section 94.344, subdivision 4. County fee land given in exchange is subject <br/>
<a id="pl.3.8"></a><var>3.8</var>to the reservation provisions of section 373.01, subdivision 1, paragraph (g).<br/>
<a id="pl.3.9"></a><var>3.9</var>    Subd. 8. <b>Land status.</b> Land received in exchange for Class 1 land is subject to the <br/>
<a id="pl.3.10"></a><var>3.10</var>same trust, if any, and otherwise has the same status as the land given in exchange. Land <br/>
<a id="pl.3.11"></a><var>3.11</var>received in exchange for Class 2 land is subject to a trust in favor of the governmental <br/>
<a id="pl.3.12"></a><var>3.12</var>subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in <br/>
<a id="pl.3.13"></a><var>3.13</var>exchange for Class 3 land has the same status as the land given in exchange.<br/>