SF 3638

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/20/2026 09:10 a.m.

A bill for an act
relating to natural resources; requiring conveyor of land to commissioner of natural
resources to ensure that conveyance does not result in loss of revenue to affected
counties; clarifying authority to issue timber permits in wildlife management areas;
requiring extension of certain timber permits when mills not accepting timber;
prohibiting inclusion of certain land in wildlife management areas; removing
requirement that commissioner of natural resources approve certain sales of
tax-forfeited land; requiring reports; amending Minnesota Statutes 2024, sections
84.0272, by adding a subdivision; 90.151, subdivision 1; 90.193; 97A.133, by
adding a subdivision; 282.01, subdivision 3; 282.011, subdivision 1; 282.018,
subdivision 1; 282.02; 282.14; 282.221; proposing coding for new law in Minnesota
Statutes, chapter 84.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 84.0272, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin No loss of county tax revenue. new text end

new text begin (a) The commissioner may not purchase or
otherwise acquire land if the acquisition will result in a loss of tax revenue to a county unless
the party conveying the property enters into an agreement with the county to pay the county
each year an amount equal to the amount of net tax calculated for the property, computed
using the estimated market value of the property each assessment year, as if the property
were not exempt from taxation. Payment must be made as required under section 279.01
for each year the property remains exempt.
new text end

new text begin (b) Notwithstanding any other provision of law, if a payment required by paragraph (a)
is not made, the commissioner must convey the affected land for no consideration to the
county in which the land is located and the county may then dispose of the land in the same
manner that tax-forfeited land may be disposed of under chapter 282. The requirements of
this paragraph are deemed to be included in the terms of any conveyance subject to paragraph
(a).
new text end

Sec. 2.

new text begin [84.0278] LAND OWNERSHIP AND STEWARDSHIP REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Annual report. new text end

new text begin By January 1 each year, the commissioner of natural
resources must report to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over natural resources policy and finance on
land that the department owned or had stewardship over during the previous calendar year.
Each report must contain:
new text end

new text begin (1) a list of all property owned by the department;
new text end

new text begin (2) a list of all property on which the department owned an easement;
new text end

new text begin (3) a list of all property over which the department had some other legal authority;
new text end

new text begin (4) a list of all real property or interests in real property that were disposed of by the
department;
new text end

new text begin (5) a statement of all expenditures or costs attributable to the ownership, stewardship,
or disposal of each property identified in the report; and
new text end

new text begin (6) an explanation of how the ownership, stewardship, or disposal of each property
identified in the report serves the interests of the state and furthers the specific statutory
duties of the department.
new text end

new text begin Subd. 2. new text end

new text begin Quarterly updates. new text end

new text begin By April 1, July 1, and October 1 each year, the
commissioner must submit to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over natural resources policy and finance a report
on changes to the land the department owned, owned an easement on, or had some other
legal authority over during the previous quarter.
new text end

new text begin Subd. 3. new text end

new text begin Required information. new text end

new text begin Property listings identified in a report required by this
section must include information about the property's location, parcel number, and acreage.
new text end

Sec. 3.

Minnesota Statutes 2024, section 90.151, subdivision 1, is amended to read:

Subdivision 1.

Issuance; expiration.

(a) Following receipt of the down payment for
state timber required under section 90.14 or 90.191, the commissioner shall issue a numbered
permit to the purchaser, in a format approved by the commissioner, by the terms of which
the purchaser is authorized to enter upon the land and to cut and remove the timber described
in the permit as designated for cutting in the report of the state appraiser, according to the
provisions of this chapter. The permit must be correctly dated and executed by the
commissioner and signed by the purchaser. If a permit is not signed by the purchaser within
45 days from the date of purchase, the permit cancels and the down payment for timber
required under section 90.14 forfeits to the state. The commissioner may grant an additional
period for the purchaser to sign the permit, not to exceed ten business days, provided the
purchaser pays a $200 penalty fee.

(b) The permit expires no later than five years after the date of sale as the commissioner
shall specify or as specified under section 90.191, and the timber must be cut and removed
within the time specified. If additional time is needed, the permit holder must request, before
the expiration date, and may be granted, for good and sufficient reasons, up to 90 additional
days for the completion of skidding, hauling, and removing all equipment and buildings.
All cut timber, equipment, and buildings not removed from the land after expiration of the
permit becomes the property of the state.

(c) The commissioner may grant additional time not to exceed 240 days for removing
cut timber, equipment, and buildings upon receipt of a written request by the permit holder
for good and sufficient reasons. The permit holder may combine in the written request under
this paragraph the request for additional time under paragraph (b).

new text begin (d) Notwithstanding any other provision of law, the director of the Division of Forestry
in the Department of Natural Resources has final authority to determine whether issuance
of a permit under this section to cut and remove timber from land that is part of a wildlife
management area is consistent with sustainably managing the state's forest resources for
multiple uses, conserving and enhancing the state's fish and wildlife and the habitats on
which they depend, and managing and protecting the state's ecosystems and endangered
species.
new text end

Sec. 4.

Minnesota Statutes 2024, section 90.193, is amended to read:

90.193 EXTENSION OF TIMBER PERMITS.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Closure period" means any period during which a previously utilized mill is not
accepting the permitted type of wood.
new text end

new text begin (c) "Eligible timber permit" means a valid timber permit issued on or after January 1,
2024.
new text end

new text begin (d) "Permitted type of wood" means the type of wood authorized to be cut and removed
under the terms of a valid timber permit.
new text end

new text begin (e) "Previously utilized mill" means a mill that has accepted the permitted type of wood
from the timber permit holder at any point during the previous two years.
new text end

new text begin Subd. 2. new text end

new text begin Mandatory extension. new text end

new text begin Notwithstanding any provision in this chapter to the
contrary, when an eligible timber permit holder provides the commissioner with satisfactory
evidence that a previously utilized mill is in a closure period, the commissioner must extend
the timber permit for the duration of the closure period. Once the closure period ends, the
validity of the eligible timber permit must be extended for an amount of time equal to the
portion of the term of the timber permit that coincided with the closure period.
new text end

new text begin Subd. 3. new text end

new text begin Discretionary extension. new text end

The commissioner may, in the case of an exceptional
circumstance beyond the control of the timber permit holder which makes it unreasonable,
impractical, and not feasible to complete cutting and removal under the permit within the
time allowed, grant one regular extension for one year. A written request for the regular
extension must be received by the commissioner before the permit expires. The request
must state the reason the extension is necessary and be signed by the permit holder. An
interest rate of five percent may be charged for the period of extension.

Sec. 5.

Minnesota Statutes 2024, section 97A.133, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Prohibition on including certain land. new text end

new text begin The commissioner may not include
land acquired with federal money after July 1, 2026, in a wildlife management area.
new text end

Sec. 6.

Minnesota Statutes 2024, section 282.01, subdivision 3, is amended to read:

Subd. 3.

Nonconservation lands; appraisal and sale.

(a) All parcels of land classified
as nonconservation, except those which may be reserved, shall be sold as provided, if it is
determined, by the county board of the county in which the parcels lie, that it is advisable
to do so, having in mind their accessibility, their proximity to existing public improvements,
and the effect of their sale and occupancy on the public burdens. Any parcels of land proposed
to be sold new text begin , and any standing timber thereon, new text end shall be first appraised by the county board of
the county in which the parcels lie. The parcels new text begin , and any standing timber thereon, new text end may be
reappraised whenever the county board deems it necessary to carry out the intent of sections
282.01 to 282.13. new text begin The county board may consult with the commissioner of natural resources
on any appraisal under this paragraph.
new text end

deleted text begin (b) In an appraisal the value of the land and any standing timber on it shall be separately
determined. No parcel of land containing any standing timber may be sold until the appraised
value of the timber on it and the sale of the land have been approved by the commissioner
of natural resources. The commissioner shall base review of a proposed sale on the policy
and considerations specified in subdivision 1. The decision of the commissioner shall be in
writing and shall state the reasons for it. The commissioner's decision is exempt from the
rulemaking provisions of chapter 14 and section 14.386 does not apply. The county may
appeal the decision of the commissioner in accordance with chapter 14.
deleted text end

deleted text begin (c) In any county in which a state forest or any part of it is located, the county auditor
shall submit to the commissioner at least 60 days before the first publication of the list of
lands to be offered for sale a list of all lands included on the list which are situated outside
of any incorporated municipality. If, at any time before the opening of the sale, the
commissioner notifies the county auditor in writing that there is standing timber on any
parcel of land, the parcel shall not be sold unless the requirements of this section respecting
the separate appraisal of the timber and the approval of the appraisal by the commissioner
have been complied with. The commissioner may waive the requirement of the 60-day
notice as to any parcel of land which has been examined and the timber value approved as
required by this section.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end If any public improvement is made by a municipality after any parcel of land has
been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
whole or in part against the property benefited by it, the clerk of the municipality shall
certify to the county auditor, immediately upon the determination of the assessments for
the improvement, the total amount that would have been assessed against the parcel of land
if it had been subject to assessment; or if the public improvement is made, petitioned for,
ordered in or assessed, whether the improvement is completed in whole or in part, at any
time between the appraisal and the sale of the parcel of land, the cost of the improvement
shall be included as a separate item and added to the appraised value of the parcel of land
at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
from lien for the special benefit conferred upon it by reason of the public improvement until
the cost of it, including penalties, if any, is paid. The county board shall determine the
amount, if any, by which the value of the parcel was enhanced by the improvement and
include the amount as a separate item in fixing the appraised value for the purpose of sale.

Sec. 7.

Minnesota Statutes 2024, section 282.011, subdivision 1, is amended to read:

Subdivision 1.

Classification, sale, procedures and conditions.

Any lands which have
become the absolute property of the state through forfeiture for nonpayment of taxes and
which have been classified by the county board as conservation lands under the provisions
of section 282.01, or have been classified as nonagricultural lands under the provisions of
section 282.14, or any such lands which shall hereafter be so classified, may be designated
by the county board of the county in which such lands lie, by resolution duly adopted, as
appropriate and primarily suitable for either specific conservation purposes or for auxiliary
forest lands. Any resolution so adopted, together with a list of the lands involved new text begin , new text end shall be
forwarded to the deleted text begin commissioner of natural resources who shall promptly approve or disapprove
the whole or any part thereof. The commissioner shall thereupon make a certificate showing
the lands approved, transmit the same to the deleted text end county auditor who shall record the same.
Lands so designated deleted text begin and so approved deleted text end shall thereupon be appraised and the whole, or any
part thereof, may be offered for sale and sold in the same manner as provided for the sale
of lands classified as nonconservation lands under section 282.01, or as agricultural lands
under section 282.14, as the case may be, according to the status of such lands upon forfeiture.
The right to a deed of conveyance to such property accorded the purchaser at any such sale
shall be conditioned upon the lands being placed in an auxiliary forest or used for designated
conservation purposes as designated by the resolution of the county board.

Sec. 8.

Minnesota Statutes 2024, section 282.018, subdivision 1, is amended to read:

Subdivision 1.

Land on or adjacent to public waters.

(a) All land which is the property
of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether
the land is held in trust for taxing districts, and which borders on or is adjacent to meandered
lakes and other public waters and watercourses, and the live timber growing or being thereon,
is hereby withdrawn from sale except as hereinafter provided. The authority having
jurisdiction over the timber on any of these lands may sell the timber as otherwise provided
by law for cutting and removal under the conditions as the authority may prescribe in
accordance with approved, sustained yield forestry practices. The authority having jurisdiction
over the timber shall reserve the timber and impose the conditions as the authority deems
necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features.
Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress
approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject
to like restrictions as are now imposed by that act on federal lands.

(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public
waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary
high-water mark being the waterside boundary thereof, and the land side boundary thereof
being a line drawn parallel to the ordinary high-water mark and two rods distant landward
therefrom, hereby is reserved for public travel thereon, and whatever the conformation of
the shore line or conditions require, the authority having jurisdiction over these lands shall
reserve a wider strip for these purposes.

(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by
the authority having jurisdiction over the land, in the manner otherwise provided by law
for the sale of the lands, if the authority determines that it is in the public interest to do so.
Any tract or parcel of land within a plat of record bordering on or adjacent to meandered
lakes and other public waters and watercourses may be sold by the authority having
jurisdiction over the land, in the manner otherwise provided by law for the sale of the lands,
if the authority determines that it is in the public interest to do so. deleted text begin If the authority having
jurisdiction over the land is not the commissioner of natural resources, the land may not be
offered for sale without the prior approval of the commissioner of natural resources.
deleted text end

(d) Where the authority having jurisdiction over lands withdrawn from sale under this
section is not the commissioner of natural resources, the authority may submit proposals
for disposition of the lands to the commissioner. The commissioner of natural resources
shall evaluate the lands and their public benefits and make recommendations on the proposed
dispositions to the committees of the legislature with jurisdiction over natural resources.
The commissioner shall include any recommendations of the commissioner for disposition
of lands withdrawn from sale under this section over which the commissioner has jurisdiction.
The commissioner's recommendations may include a public sale, sale to a private party,
acquisition by the Department of Natural Resources for public purposes, or a cooperative
management agreement with, or transfer to, another unit of government.

(e) Notwithstanding this subdivision, a county may sell property governed by this section
upon written authorization from the commissioner of natural resources. Prior to the sale or
conveyance of lands under this subdivision, the county board must give notice of its intent
to meet for that purpose as provided in section 282.01, subdivision 1.

Sec. 9.

Minnesota Statutes 2024, section 282.02, is amended to read:

282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS
PERMITTED.

(a) Immediately after classification and appraisal of the land, deleted text begin and after approval by the
commissioner of natural resources when required pursuant to section 282.01, subdivision
3, deleted text end the county board shall provide and file with the county auditor a list of parcels of land to
be offered for sale. This list shall contain a description of the parcels of land and the appraised
value thereof. The auditor shall publish a notice of the intended public sale of such parcels
of land and a copy of the resolution of the county board fixing the terms of the sale, if other
than for cash only, by publication once a week for two weeks in the official newspaper of
the county, the last publication to be not less than ten days previous to the commencement
of the sale.

(b) The notice shall include the parcel's description and appraised value. The notice shall
also indicate the amount of any special assessments which may be the subject of a
reassessment or new assessment or which may result in the imposition of a fee or charge
pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall
also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this
section, "owner" means the taxpayer as listed in the records of the county auditor.

(c) If the county board determines that the sale shall take place in a county facility other
than the courthouse, the notice shall specify the facility and its location. If the county board
determines that the sale shall take place as an online auction under section 282.01, subdivision
13, the notice shall specify the auction website and the date of the auction.

Sec. 10.

Minnesota Statutes 2024, section 282.14, is amended to read:

282.14 CLASSIFICATION AS AGRICULTURAL; SALE CONDITIONS,
GENERALLY.

All parcels of land becoming the absolute property of the state under the provisions of
the 1938 Supplement to Mason's Minnesota Statutes of 1927, section 2139-2, and acts
amendatory thereof or supplementary thereto, situated within any conservation or
reforestation area created under the provisions of sections 84A.20 to 84A.30, or 84A.31 to
84A.42, shall be classified by the county board of the county wherein such parcels lie as
agricultural and nonagricultural, which classification shall be approved by the commissioner
of natural resources before any lands are offered for sale. The county board of the county
wherein such parcels lie shall determine the appraised value of all lands classified and
approved as agricultural and may reappraise annually if in their judgment it be deemed
necessary to carry out the intent of sections 282.14 to 282.22. Any merchantable timber on
such agricultural land shall be appraised separately, and such appraisal approved by the
commissioner of natural resources. All such parcels of land, classified as agricultural, shall
be sold by the state at public sale, as provided in sections 282.15 and 282.16, when it shall
be determined by the county board of the county wherein such parcels lie that it is advisable
to do so. No such lands shall be sold by the board of county commissioners without the
approval of the commissioner of natural resources. All sales of land shall be made in
accordance with the subdivisions thereof by the United States surveys unless the same shall
have been subdivided into smaller parcels or lots, but no land shall be sold in larger quantity
than 160 acres. new text begin Nothing in this section shall be construed to prevent a county from
reclassifying lands governed by this section as nonconservation lands in accordance with
section 282.01, subdivision 1, paragraph (b), or disposing of those lands as authorized in
this chapter.
new text end

Sec. 11.

Minnesota Statutes 2024, section 282.221, is amended to read:

282.221 FORFEITED AGRICULTURAL LANDS.

Subdivision 1.

Classified and sold.

new text begin (a) new text end All lands deleted text begin which deleted text end new text begin that new text end become the absolute property
of the state under deleted text begin the provisions of deleted text end section 84A.07 deleted text begin , deleted text end and are suitable for agricultural purposes deleted text begin , deleted text end
deleted text begin shall deleted text end new text begin must new text end be classified as deleted text begin such deleted text end new text begin agricultural lands new text end by the county board of the county wherein
the lands are situated.

new text begin (b) new text end No deleted text begin lands deleted text end new text begin land new text end shall be offered for sale under deleted text begin the provisions of deleted text end sections 282.221 to
282.226 until deleted text begin their classification by deleted text end the county board new text begin classifies the land new text end as agricultural deleted text begin lands
shall have been approved by the commissioner deleted text end new text begin land according to paragraph (a) new text end . new text begin Once the
classification is made, new text end the county auditor may deleted text begin with the approval of the commissioner deleted text end sell
any parcel of tax-forfeited land or any portion thereof to any organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision may
acquire property at not less than the appraised value thereof as determined by the county
board.

Subd. 2.

Appraisal.

All lands deleted text begin which deleted text end new text begin that new text end have become the absolute property of the state
under deleted text begin the provisions of deleted text end section 84A.07 and are classified as agricultural lands deleted text begin shall deleted text end new text begin must new text end
be appraised by the county board of the county wherein the lands are situated, and this
appraisal deleted text begin shall deleted text end new text begin must new text end be filed in the office of the auditor of the county. Any merchantable
timber on such lands deleted text begin shall deleted text end new text begin must new text end be appraised separately deleted text begin and such appraisal shall be approved
by the commissioner deleted text end . The county board may reappraise any such lands when, in its judgment,
the reappraisal is necessary in effectuating deleted text begin the provisions of deleted text end sections 282.221 to 282.226,
but no such lands shall be appraised more than once in any 12-month period.