1.1 	A bill for an act
1.2 	relating to natural resources; creating a Minnesota forests for the future program; 
1.3 	establishing a revolving account; providing for expedited exchanges of public 
1.4 	land; modifying the sustainable forest incentive program; appropriating money;
1.5 	proposing coding for new law in Minnesota Statutes, chapters 84; 94.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [84.66] MINNESOTA FORESTS FOR THE FUTURE PROGRAM.
1.8 		Subdivision 1.Purpose. The Minnesota forests for the future program identifies and 
1.9 	protects private, working forest lands for their timber, scenic, recreational, fish and wildlife 
1.10 	habitat, threatened and endangered species, and other cultural and environmental values.
1.11 		Subd. 2.Definitions. For the purpose of this section, the following terms have 
1.12 	the meanings given:
1.13 	(1) "forest land" has the meaning given under section 89.001, subdivision 4;
1.14 	(2) "forest resources" has the meaning given under section 89.001, subdivision 8;
1.15 	(3) "guidelines" has the meaning given under section 89A.01, subdivision 8;
1.16 	(4) "riparian land" has the meaning given under section 103F.511, subdivision 8a; 
1.17 	and 
1.18 	(5) "working forest land" means land that provides a broad range of goods and 
1.19 	services, including forest products, recreation, fish and wildlife habitat, clean air and 
1.20 	water, and carbon sequestration.
1.21 		Subd. 3.Establishment. The commissioner of natural resources shall establish and 
1.22 	administer a Minnesota forests for the future program. Land selected for inclusion in the 
1.23 	program shall be evaluated on the land's potential for:
1.24 	(1) producing timber and other forest products;
1.25 	(2) maintaining forest landscapes;
2.1 	(3) providing public recreation; and
2.2 	(4) providing ecological, fish and wildlife habitat, other cultural and environmental 
2.3 	values, and values consistent with working forest lands.
2.4 		Subd. 4.Land eligibility. Land may be placed in the Minnesota forests for the 
2.5 	future program if it:
2.6 	(1) is:
2.7 	(i) forest land;
2.8 	(ii) desirable land adjacent to forest land, as determined by the commissioner; or
2.9 	(iii) beneficial to forest resource protection;
2.10 	(2) is at least five acres in size, except for a riparian area or an area providing access 
2.11 	to state forest land; and
2.12 	(3) is not set aside, enrolled, or diverted under another federal or state program, 
2.13 	unless enrollment in the Minnesota forests for the future program would provide additional 
2.14 	conservation benefits or a longer enrollment term than under the current federal or state 
2.15 	program.
2.16 		Subd. 5.Land interests. The commissioner may acquire permanent interests in 
2.17 	lands by fee title, easement acquisition, gift, or donation. An acquired easement shall 
2.18 	require a forestry management plan unless the requirement is waived or modified by 
2.19 	the commissioner. The plan will guide forest management activities consistent with the 
2.20 	purposes and terms of the easement and shall incorporate guidelines and other forest 
2.21 	management practices as determined by the commissioner to provide perpetuation of the 
2.22 	forest. The plan shall be developed in accordance with the guidelines.
2.23 		Subd. 6.Application. The commissioner shall accept applications from owners of 
2.24 	eligible lands at the time, in the form, and containing the information as the commissioner 
2.25 	may prescribe. If the number of applications exceeds the ability to fund them all, priority 
2.26 	shall be given to those applications covering lands providing the greatest public benefits 
2.27 	for timber productivity, public access, and ecological and wildlife values.
2.28 		Subd. 7.Landowner responsibilities. The commissioner may enroll eligible land 
2.29 	in the program by signing an easement in recordable form with a landowner in which 
2.30 	the landowner agrees to:
2.31 	(1) convey to the state a permanent easement that is not subject to any prior title, 
2.32 	lien, or encumbrance; and
2.33 	(2) manage the land in a manner consistent with the purposes for which the land was 
2.34 	selected for the program and not convert the land to other uses.
2.35 		Subd. 8.Advisory team. In administering the program, the commissioner may 
2.36 	establish an advisory team to provide advice on program management.
3.1 		Subd. 9.Correction of easement boundary lines. To correct errors in legal 
3.2 	descriptions for easements that affect the ownership interests in the state and adjacent 
3.3 	landowners, the commissioner may, in the name of the state, convey without consideration, 
3.4 	interests of the state necessary to correct legal descriptions of boundaries. The conveyance 
3.5 	must be by quitclaim deed or release in a form approved by the attorney general.
3.6 		Subd. 10.Terminating or changing an easement. The commissioner may 
3.7 	terminate an easement, with the consent of the property owner, if the commissioner 
3.8 	determines termination to be in the public interest. The commissioner may modify the 
3.9 	terms of an easement if the commissioner determines that modification will help implement 
3.10 	the Minnesota forests for the future program or facilitate the program's administration.
3.11 		Subd. 11.Payments. Payments to landowners under the Minnesota forests for 
3.12 	the future program shall be made in accordance with law and Department of Natural 
3.13 	Resources acquisition policies, procedures, and other funding requirements.
3.14 		Subd. 12.Monitoring, enforcement, and damages. (a) The commissioner shall 
3.15 	establish a long-term program for monitoring and enforcing Minnesota forests for the 
3.16 	future easements.
3.17 	(b) A landowner who violates the terms of an easement under this section or induces, 
3.18 	assists, or allows another to do so is liable to the state for damages due to the loss of 
3.19 	timber, scenic, recreational, fish and wildlife habitat, threatened and endangered species, 
3.20 	and other cultural and environmental values.
3.21 	(c) Upon request of the commissioner, the attorney general may commence an action 
3.22 	for specific performance, injunctive relief, damages, including attorney's fees, and any 
3.23 	other appropriate relief to enforce this section in district court in the county where all or 
3.24 	part of the violation is alleged to have been committed or where the landowner resides or 
3.25 	has a principal place of business.
3.26 		Subd. 13.Rulemaking exemption. Easements agreed to under this section are not 
3.27 	subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

3.28 	Sec. 2. [84.67] FORESTS FOR THE FUTURE REVOLVING ACCOUNT.
3.29 	A forests for the future revolving account is created in the natural resources fund. 
3.30 	Money in the account is appropriated to the commissioner of natural resources for the 
3.31 	acquisition of forest lands that meet the eligibility criteria in section 84.66, subdivision 4. 
3.32 	The commissioner shall sell the lands acquired under this section, subject to an easement 
3.33 	as provided in section 84.66. Money received from the sale of forest lands acquired under 
3.34 	this section and interest earned on the account shall be deposited into the account. The 
3.35 	commissioner must file a report to the house Ways and Means and the senate Finance 
4.1 	Committees and the environment and natural resources finance committees or divisions of 
4.2 	the senate and house of representatives by October 1 of each year indicating all purchases 
4.3 	of forest land using money from this account and sales of forest land for which revenue is 
4.4 	deposited into this account.

4.5 	Sec. 3. [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE 
4.6 	STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.
4.7 		Subdivision 1.Purpose and scope. (a) The purpose of this section is to expedite the 
4.8 	exchange of public land ownership. Consolidation of public land reduces management 
4.9 	costs and aids in the reduction of forest fragmentation.
4.10 	(b) This section applies to exchanges of land between the state and a governmental 
4.11 	subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347 
4.12 	apply only to the extent specified in this section.
4.13 		Subd. 2.Classes of land; definitions. The classes of public land that may be 
4.14 	involved in an expedited exchange under this section are:
4.15 	(1) Class 1 land, which for the purpose of this section is Class A land as defined in 
4.16 	section 94.342, subdivision 1, except for:
4.17 	(i) school trust land as defined in section 92.025; and
4.18 	(ii) university land granted to the state by acts of Congress;
4.19 	(2) Class 2 land, which for the purpose of this section is Class B land as defined in 
4.20 	section 94.342, subdivision 2; and
4.21 	(3) Class 3 land, which for the purpose of this section is all land owned in fee by 
4.22 	a governmental subdivision of the state.
4.23 		Subd. 3.Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land, 
4.24 	the value of all the land shall be determined by the commissioner of natural resources. In 
4.25 	an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined 
4.26 	by the county board of the county in which the land lies. To determine the value of the 
4.27 	land, the parties to the exchange may cause the land to be appraised, utilize the valuation 
4.28 	process provided under section 84.0272, subdivision 3, or obtain a market analysis from a 
4.29 	qualified real estate broker. Merchantable timber value must be determined and considered 
4.30 	in finalizing valuation of the lands.
4.31 	(b) All lands exchanged under this section shall be exchanged only for lands of 
4.32 	at least substantially equal value. For the purposes of this subdivision, "substantially 
4.33 	equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b). 
4.34 	No payment is due either party if the lands are of substantially equal value but are not 
4.35 	of the same value.
5.1 		Subd. 4.Title. Title to the land must be examined to the extent necessary for the 
5.2 	parties to determine that the title is good, with any encumbrances identified. The parties to 
5.3 	the exchange may utilize title insurance to aid in the determination.
5.4 		Subd. 5.Approval by Land Exchange Board. All expedited land exchanges 
5.5 	under this section, and the terms and conditions of the exchanges, require the unanimous 
5.6 	approval of the Land Exchange Board.
5.7 		Subd. 6.Conveyance. (a) Conveyance of Class 1 land given in exchange shall be 
5.8 	made by deed executed by the commissioner of natural resources in the name of the 
5.9 	state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the 
5.10 	commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by 
5.11 	a deed executed by the governing body in the name of the governing authority.
5.12 	(b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class 
5.13 	2 or 3 land shall first be delivered to the commissioner of natural resources. Following 
5.14 	the recording of the deed, the commissioner of natural resources shall deliver the deed 
5.15 	conveying the Class 1 land.
5.16 	(c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land 
5.17 	shall first be delivered to the county auditor. Following the recording of the deed, the 
5.18 	commissioner of revenue shall deliver the deed conveying the Class 2 land.
5.19 	(d) All deeds shall be recorded or registered in the county in which the lands lie.
5.20 		Subd. 7.Reversionary interest; mineral and water power rights and other 
5.21 	reservations. (a) All deeds conveying land given in an expedited land exchange under 
5.22 	this section shall include a reverter that provides that title to the land automatically reverts 
5.23 	to the conveying governmental unit if:
5.24 	(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of 
5.25 	the land within 40 years of the date of the deed conveying ownership; and
5.26 	(2) there is no prior written approval for the transfer from the conveying 
5.27 	governmental unit. The authority for granting approval is the commissioner of natural 
5.28 	resources for former Class 1 land, the county board for former Class 2 land, and the 
5.29 	governing body for former Class 3 land.
5.30 	(b) Class 1 land given in exchange is subject to the reservation provisions of section 
5.31 	94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation 
5.32 	provisions of section 94.344, subdivision 4. County fee land given in exchange is subject 
5.33 	to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
5.34 		Subd. 8.Land status. Land received in exchange for Class 1 land is subject to the 
5.35 	same trust, if any, and otherwise has the same status as the land given in exchange. Land 
5.36 	received in exchange for Class 2 land is subject to a trust in favor of the governmental 
6.1 	subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in 
6.2 	exchange for Class 3 land has the same status as the land given in exchange.

6.3 	Sec. 4. TRANSFER; FORESTS FOR THE FUTURE REVOLVING ACCOUNT.
 6.4 	$....... from the general fund is transferred to the forests for the future revolving 
6.5 	account created in Minnesota Statutes, section 84.67.

6.6 	Sec. 5. APPROPRIATION; FOREST FRAGMENTATION STUDY.
 6.7 	$50,000 is appropriated in fiscal year 2009 from the general fund to the Forest 
6.8 	Resources Council to conduct a study of options and make recommendations to the 
6.9 	legislature for addressing the fragmentation and parcelization of large blocks of private 
6.10 	forest land in the state. This is a onetime appropriation.