as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to natural resources; modifying provisions 1.3 for the sale and disposition of surplus state lands; 1.4 modifying certain state land management provisions; 1.5 adding to state forests and wildlife management areas; 1.6 appropriating money; amending Minnesota Statutes 2002, 1.7 sections 15.054; 84.0272, by adding subdivisions; 1.8 85.015, subdivision 1; 86A.05, subdivision 14; 89.01, 1.9 by adding a subdivision; 92.02; 92.03; 92.04; 92.06, 1.10 subdivisions 1, 2, 4, 5, by adding a subdivision; 1.11 92.08; 92.10, subdivision 2; 92.12, subdivisions 1, 2, 1.12 4, 5; 92.121; 92.14, subdivision 1; 92.16, by adding a 1.13 subdivision; 92.28; 92.29; 92.321, subdivision 1; 1.14 94.09, subdivisions 1, 3; 94.10; 94.11; 94.12; 94.13; 1.15 94.16, subdivision 2; 282.01, subdivision 3; Minnesota 1.16 Statutes 2003 Supplement, sections 525.161; 525.841; 1.17 proposing coding for new law in Minnesota Statutes, 1.18 chapters 16B; 92; repealing Minnesota Statutes 2002, 1.19 sections 92.09; 92.11; 94.09, subdivisions 2, 4, 5, 6. 1.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.21 ARTICLE 1 1.22 SALE AND DISPOSITION OF SURPLUS LANDS 1.23 Section 1. Minnesota Statutes 2002, section 15.054, is 1.24 amended to read: 1.25 15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM 1.26 GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.] 1.27 No officer or employee of the state or any of its political 1.28 subdivisions shall sell or procure for sale or possess or 1.29 control for sale to any other officer or employee of the state 1.30 or subdivision, as appropriate, any property or materials owned 1.31 by the state or subdivision except pursuant to conditions 1.32 provided in this section. Property or materials owned by the 2.1 state or a subdivision
, except real property,and not needed for 2.2 public purposes, may be sold to an employee of the state or 2.3 subdivision after reasonable public notice at a public auction 2.4 or by sealed response, if the employee is not directly involved 2.5 in the auction or process pertaining to the administration and 2.6 collection of sealed responses. Requirements for reasonable 2.7 public notice may be prescribed by other law or ordinance so 2.8 long as at least one week's published notice is specified. An 2.9 employee of the state or a political subdivision may purchase no 2.10 more than one motor vehicle from the state in any 12-month 2.11 period. A person violating the provisions of this section is 2.12 guilty of a misdemeanor. This section shall not apply to the 2.13 sale of property or materials acquired or produced by the state 2.14 or subdivision for sale to the general public in the ordinary 2.15 course of business. Nothing in this section shall prohibit an 2.16 employee of the state or a political subdivision from selling or 2.17 possessing for sale public property if the sale or possession 2.18 for sale is in the ordinary course of business or normal course 2.19 of the employee's duties. 2.20 Sec. 2. [16B.281] [SALE AND DISPOSITION OF SURPLUS 2.21 STATE-OWNED LAND.] 2.22 Subdivision 1. [APPLICABILITY.] All tracts or lots of real 2.23 property belonging to the state or that may hereafter accrue to 2.24 the state, including tracts or lots that have escheated to the 2.25 state, may be disposed of according to sections 16B.281 to 2.26 16B.287. Sections 16B.281 to 16B.287 do not apply to school or 2.27 other trust fund lands belonging to the state, or that may 2.28 hereafter accrue to the state, under and by virtue of any act of 2.29 Congress or to any other state-owned lands the sale or 2.30 disposition of which is provided for under sections 94.09 to 2.31 94.16 or other law. 2.32 Subd. 2. [CERTIFICATION REQUIRED.] On or before July 1 of 2.33 each year, the head of each department or agency having control 2.34 and supervision over any state-owned land, the sale or 2.35 disposition of which is not otherwise provided for by law, shall 2.36 certify in writing to the commissioner whether there is any 3.1 state-owned land under control and supervision of that 3.2 department or agency that is no longer needed. If the 3.3 certification discloses lands no longer needed for a department 3.4 or agency, the head of the department or agency shall include in 3.5 the certification a description of the lands and the reasons why 3.6 the lands are no longer needed. 3.7 Subd. 3. [NOTICE TO AGENCIES; DETERMINATION OF 3.8 SURPLUS.] On or before October 1 of each year, the commissioner 3.9 shall review the certifications of heads of each department or 3.10 agency provided for in this section. The commissioner shall 3.11 send written notice to all state departments, agencies, and the 3.12 University of Minnesota describing any lands or tracts that may 3.13 be declared surplus. If a department or agency or the 3.14 University of Minnesota desires custody of the lands or tracts, 3.15 it shall submit a written request to the commissioner, no later 3.16 than four calendar weeks after mailing of the notice, setting 3.17 forth in detail its reasons for desiring to acquire and its 3.18 intended use of the land or tract. The commissioner shall then 3.19 determine whether any of the lands described in the 3.20 certifications of the heads of the departments or agencies 3.21 should be declared surplus and offered for sale or otherwise 3.22 disposed of by transferring custodial control to other 3.23 requesting state departments or agencies or to the Board of 3.24 Regents of the University of Minnesota for educational purposes, 3.25 provided however that transfer to the Board of Regents shall not 3.26 be determinative of tax exemption or immunity. If the 3.27 commissioner determines that any of the lands are no longer 3.28 needed for state purposes, the commissioner shall make findings 3.29 of fact, describe the lands, declare the lands to be surplus 3.30 state land, state the reasons for the sale or disposition of the 3.31 lands, and notify the Executive Council of the determination. 3.32 Subd. 4. [EXECUTIVE COUNCIL APPROVAL.] Within 60 days 3.33 after the receipt of the notification from the commissioner, the 3.34 Executive Council shall approve or disapprove the commissioner's 3.35 determinations. If the determinations are approved, the lands 3.36 shall be offered for sale or otherwise disposed of as provided 4.1 for in sections 16B.281 to 16B.287. If the Executive Council 4.2 disapproves the determinations, the same determinations 4.3 regarding the surplus lands may not be resubmitted to the 4.4 Executive Council until at least six months after the date of 4.5 the disapproval. 4.6 Subd. 5. [REPORT REQUIRED.] On or before November 15 of 4.7 each even-numbered year, the commissioner shall report to the 4.8 governor and the legislature the following information for the 4.9 two-year period immediately preceding: 4.10 (1) the lands that state departments and agencies have 4.11 certified as no longer needed; 4.12 (2) the lands that have been determined to be no longer 4.13 needed for state purposes, regarding which the Executive Council 4.14 has been formally notified; and 4.15 (3) the lands that have been publicly sold. 4.16 Subd. 6. [MAINTENANCE OF LAND BEFORE SALE.] The state 4.17 department or agency holding custodial control shall maintain 4.18 the state-owned lands until the lands are sold or otherwise 4.19 disposed of as provided for in sections 16B.281 to 16B.287. 4.20 Sec. 3. [16B.282] [SURVEYS, APPRAISALS, AND SALE.] 4.21 Subdivision 1. [APPRAISAL; NOTICE AND OFFER TO PUBLIC 4.22 BODIES.] (a) Before offering any surplus state-owned lands for 4.23 sale, the commissioner may survey the lands and, if the value of 4.24 the lands is estimated to be $40,000 or less, may have the lands 4.25 appraised. The commissioner shall have the lands appraised if 4.26 the estimated value is in excess of $40,000. 4.27 (b) The appraiser shall, before entering upon the duties of 4.28 the office, take and subscribe an oath that the appraiser will 4.29 faithfully and impartially discharge the duties of appraiser 4.30 according to the best of the appraiser's ability and that the 4.31 appraiser is not interested, directly or indirectly, in any of 4.32 the lands to be appraised or the timber or improvements on the 4.33 lands or in the purchase of the lands, timber, or improvements 4.34 and has entered into no agreement or combination to purchase any 4.35 of the lands, timber, or improvements. The oath shall be 4.36 attached to the appraisal report. 5.1 (c) Before offering surplus state-owned lands for public 5.2 sale, the lands shall first be offered to the city, county, 5.3 town, school district, or other public body corporate or politic 5.4 in which the lands are situated for public purposes and the 5.5 lands may be sold for public purposes for not less than the 5.6 appraised value of the lands. To determine whether a public 5.7 body desires to purchase the surplus land, the commissioner 5.8 shall give a written notice to the governing body of each 5.9 political subdivision whose jurisdictional boundaries include or 5.10 are adjacent to the surplus land. If a public body desires to 5.11 purchase the surplus land, it shall submit a written offer to 5.12 the commissioner no later than two weeks after receipt of notice 5.13 setting forth in detail its reasons for desiring to acquire and 5.14 its intended use of the land. In the event that more than one 5.15 public body tenders an offer, the commissioner shall determine 5.16 which party shall receive the property and shall submit written 5.17 findings regarding the decision. If lands are offered for sale 5.18 for public purposes and if a public body notifies the 5.19 commissioner of its desire to acquire the lands, the public body 5.20 may have up to two years from the date of the accepted offer to 5.21 commence payment for the lands in the manner provided by law. 5.22 Subd. 2. [PUBLIC SALE REQUIREMENTS.] (a) Lands certified 5.23 as surplus by the head of a department or agency under section 5.24 16B.281 shall be offered for public sale by the commissioner as 5.25 provided in this subdivision. After complying with subdivision 5.26 1 and before any public sale of surplus state-owned land is 5.27 made, the commissioner shall publish a notice of the sale at 5.28 least once each week for four successive weeks in a legal 5.29 newspaper and also in a newspaper of general distribution in the 5.30 city or county in which the real property to be sold is 5.31 situated. The notice shall specify the time and place at which 5.32 the sale will commence, a general description of the lots or 5.33 tracts to be offered, and a general statement of the terms of 5.34 sale. Each tract or lot shall be sold separately and shall be 5.35 sold for no less than its appraised value. 5.36 (b) Parcels remaining unsold after the offering may be sold 6.1 to anyone agreeing to pay the appraised value. The sale shall 6.2 continue until all parcels are sold or until the commissioner 6.3 orders a reappraisal or withdraws the remaining parcels from 6.4 sale. 6.5 (c) Except as provided in section 16B.283, the cost of any 6.6 survey or appraisal as provided in subdivision 1 shall be added 6.7 to and made a part of the appraised value of the lands to be 6.8 sold, whether to any political subdivision of the state or to a 6.9 private purchaser as provided in this subdivision. 6.10 Sec. 4. [16B.283] [TERMS OF PAYMENT.] 6.11 No less than ten percent of the purchase price shall be 6.12 paid at the time of sale with the balance payable according to 6.13 this section. If the purchase price of any lot or parcel is 6.14 $5,000 or less, the balance shall be paid within 90 days of the 6.15 date of sale. If the purchase price of any lot or parcel is in 6.16 excess of $5,000, the balance shall be paid in equal annual 6.17 installments for no more than five years, at the option of the 6.18 purchaser, with principal and interest payable annually in 6.19 advance at a rate equal to the rate in effect at the time under 6.20 section 549.09 on the unpaid balance, payable to the state 6.21 treasury on or before June 1 each year. Any installment of 6.22 principal or interest may be prepaid. 6.23 Sec. 5. [16B.284] [CONTRACT FOR DEED AND QUITCLAIM DEED.] 6.24 In the event a purchaser elects to purchase surplus real 6.25 property on an installment basis, the commissioner shall enter 6.26 into a contract for deed with the purchaser, in which shall be 6.27 set forth the description of the real property sold and the 6.28 price of the property, the consideration paid and to be paid for 6.29 the property, the rate of interest, and time and terms of 6.30 payment. The contract for deed shall be made assignable and 6.31 shall further set forth that in case of the nonpayment of the 6.32 annual principal or interest payment due by the purchaser, or 6.33 any person claiming under the purchaser, then the contract for 6.34 deed, from the time of the failure, is entirely void and of no 6.35 effect and the state may be repossessed of the lot or tract and 6.36 may resell the lot or tract as provided in sections 16B.281 to 7.1 16B.287. In the event the terms and conditions of a contract 7.2 for deed are completely fulfilled or if a purchaser makes a 7.3 lump-sum payment for the subject property in lieu of entering 7.4 into a contract for deed, the commissioner shall sign and cause 7.5 to be issued a quitclaim deed on behalf of the state. The 7.6 quitclaim deed shall be in a form prescribed by the attorney 7.7 general and shall vest in the purchaser all of the state's 7.8 interest in the subject property except as provided in section 7.9 16B.286. 7.10 Sec. 6. [16B.285] [RECORD OF CONTRACTS FOR DEED AND 7.11 ASSIGNMENTS; EFFECT.] 7.12 (a) A contract for deed issued for land sold according to 7.13 sections 16B.281 to 16B.287, or any assignment thereof, executed 7.14 and acknowledged as provided by law for the execution and 7.15 acknowledgment of deeds, may be recorded in the office of the 7.16 county recorder of any county in the state in the same manner 7.17 and with like effect as deeds are therein recorded. The 7.18 contract for deed entitles the purchaser, or the heirs and 7.19 assigns of the purchaser, to the exclusive possession of the 7.20 land therein described, provided its terms have been in all 7.21 respects complied with, and the contract for deed and the record 7.22 thereof is conclusive evidence of title in the purchaser, or the 7.23 heirs and assigns of the purchaser, for all purposes and against 7.24 all persons, except the state of Minnesota in case of forfeiture. 7.25 (b) When a contract for deed or partial interest in a 7.26 contract for deed is assigned, the assignment must be made on a 7.27 form provided by the commissioner, executed by the assignor and 7.28 assignee, and consented to by the commissioner. An assignment 7.29 of a partial interest must state that payment to date has been 7.30 made to the commissioner. 7.31 (c) When the assignee satisfies the terms of the assignment 7.32 and corresponding terms of the contract for deed, the 7.33 commissioner shall issue a deed to the assignee. 7.34 Sec. 7. [16B.286] [RESERVATION OF MINERALS.] 7.35 The state reserves for its own use all the iron, coal, 7.36 copper, and other valuable minerals in or upon all lands that 8.1 may be sold under sections 16B.281 to 16B.287 and any contract 8.2 for deed or quitclaim deed shall contain a clause reserving all 8.3 such minerals for the use of the state. 8.4 Sec. 8. [16B.287] [DISPOSITION OF PROCEEDS FROM SURPLUS 8.5 STATE-OWNED LAND.] 8.6 Subdivision 1. [PAYMENT OF EXPENSES.] Money received from 8.7 the sale of surplus state-owned land according to sections 8.8 16B.281 to 16B.287 shall be credited to the general fund except 8.9 as provided in this section. 8.10 Subd. 2. [PAYMENT OF EXPENSES.] A portion of the proceeds 8.11 from the sale equal in amount to the survey, appraisal, legal, 8.12 advertising, and other expenses incurred by the commissioner or 8.13 other state official in rendering the property salable shall be 8.14 remitted to the account from which the expenses were paid and 8.15 are appropriated and immediately available for expenditure in 8.16 the same manner as other money in the account. 8.17 Sec. 9. Minnesota Statutes 2002, section 85.015, 8.18 subdivision 1, is amended to read: 8.19 Subdivision 1. [ACQUISITION.] (a) The commissioner of 8.20 natural resources shall establish, develop, maintain, and 8.21 operate the trails designated in this section. Each trail shall 8.22 have the purposes assigned to it in this section. The 8.23 commissioner of natural resources may acquire lands by gift or 8.24 purchase, in fee or easement, for the trail and facilities 8.25 related to the trail. 8.26 (b) Notwithstanding the offering to public entities, 8.27 referral to Executive Council,public sale, and related notice 8.28 and publication requirements of sections 94.09 to 94.165, the 8.29 commissioner of natural resources, in the name of the state, may 8.30 sell surplus lands not needed for trail purposes at private sale 8.31 to adjoining property owners and leaseholders. The conveyance 8.32 must be by quitclaim in a form approved by the attorney general 8.33 for a consideration not less than the appraised value. 8.34 Sec. 10. Minnesota Statutes 2002, section 89.01, is 8.35 amended by adding a subdivision to read: 8.36 Subd. 5a. [SALE OF STATE FOREST LAND.] Any state lands 9.1 included in areas set apart as state forests are eliminated from 9.2 the state forest upon sale under the provisions of sections 9.3 92.06 to 92.09 or 94.09 to 94.16. 9.4 Sec. 11. Minnesota Statutes 2002, section 92.02, is 9.5 amended to read: 9.6 92.02 [AUTHORITY.] 9.7 Sales under this chapter must be conducted by the 9.8 commissioner, a deputy of the commissioner, or a competent 9.9 person employed by the commissioner and bonded in a sum of at9.10 least $10,000. 9.11 Sec. 12. Minnesota Statutes 2002, section 92.03, is 9.12 amended to read: 9.13 92.03 [MINIMUM PRICE OF LANDS.] 9.14 Subdivision 1. [SCHOOL LANDS.] The price of school lands 9.15 must be at least $5 an acre, including the value of timber 9.16 reproduction. Sales of school lands must be held within the9.17 county containing the lands or an adjacent county.No more than 9.18 100,000 acres of school lands may be sold in one year. If a 9.19 patent has been issued by the federal government to school land 9.20 before 1864 and the taxes on it have been paid for at least 35 9.21 years, the commissioner of finance may reduce the minimum price 9.22 of $5 an acre by the taxes paid to make the land salable. 9.23 Subd. 2. [UNIVERSITY LANDS.] The price of lands donated to 9.24 the state by the United States by act of Congress entitled "An 9.25 act donating to the states of Minnesota and Oregon certain lands 9.26 reserved by Congress for the territories of Minnesota and 9.27 Oregon, for university purposes," approved March 2, 1861, and by 9.28 an act of Congress entitled "An act donating public lands to the 9.29 several states and territories which may provide colleges for 9.30 the benefit of agriculture and mechanic arts," approved July 2, 9.31 1862, must be at least $5 an acre, including the value of timber 9.32 reproduction. The directorcommissioner shall appraise these9.33 lands or any part of them andsell them in accordance with this 9.34 chapter. 9.35 Subd. 4. [INTERNAL IMPROVEMENT LANDS.] Lands donated to 9.36 the state under the eighth section of an act of Congress 10.1 entitled "An act to appropriate the proceeds of the sales of the 10.2 public lands, and to grant preemption rights," approved 10.3 September 4, 1841, must be appraised andsold and the money 10.4 derived from its sale invested, as provided by the Minnesota 10.5 Constitution, article XI, section 8. 10.6 Sec. 13. Minnesota Statutes 2002, section 92.04, is 10.7 amended to read: 10.8 92.04 [MINIMUM PRICE OF CERTAIN STATE LANDS.] 10.9 Lands selected for state institutions under an act of the 10.10 legislature entitled "An act to appropriate swamp lands to 10.11 certain educational and charitable institutions and for the 10.12 purpose of creating a state prison," approved February 13, 1865, 10.13 and lands known as state capitol lands, must be appraised and10.14 sold as school lands are sold. The price of lands belonging to 10.15 the state by virtue of the Congressional acts in this section 10.16 and section 92.03 must be at least $5 an acre, including the 10.17 value of timber reproduction. The terms of payment and 10.18 conditions of sale must be the same as nowprovided by law. 10.19 When state lands have been benefited by and assessments paid for 10.20 drainage, the drainage improvements must be considered by the 10.21 state land examiner in making appraisals. When the drained 10.22 lands are sold, the principal and interest paid on it must be 10.23 credited by the directorcommissioner to the proper fund to 10.24 which the land belongs. 10.25 Sec. 14. Minnesota Statutes 2002, section 92.06, 10.26 subdivision 1, is amended to read: 10.27 Subdivision 1. [TERMS FOR LAND SALES HELD BEFORE JULY 1, 10.28 2004.] (a) The terms of payment on the sale of state public 10.29 lands held before July 1, 2004, must be as follows: The 10.30 purchaser shall pay in cash at the time of sale the appraised 10.31 value of all timber and costs determined by the commissioner to 10.32 be associated with the sale including survey, appraisal, 10.33 publication, deed tax, filing fee, and similar costs. At least 10.34 15 percent of the purchase price of the land exclusive of timber 10.35 and associated costs must be paid in cash at the time of sale. 10.36 The balance of the purchase price must be paid in no more than 11.1 20 equal annual installments. Payments must be made by June 1 11.2 each year following the year in which the purchase was made, 11.3 with interest at the rate in effect at the time of sale, 11.4 calculated under this subdivision, on the unpaid balances. Any 11.5 installment of principal or interest may be paid in advance, but 11.6 part payment of an installment will not be accepted. For the 11.7 purpose of computing interest, any installment of principal not 11.8 paid on June 1 shall be credited on the following June 1. The 11.9 purchaser may pay the balance due on a sale within 30 days of 11.10 the sale with no interest due. 11.11 (b) Interest on unpaid balances must be computed as annual 11.12 simple interest. The rate of interest must be based on average 11.13 effective interest rates on mortgage loans as provided in 11.14 paragraph (c). 11.15 (c) On or before December 31 of each year, the commissioner 11.16 of natural resources shall determine the rate from the average 11.17 effective interest rate on loans closed using the Office of 11.18 Thrift Supervision series, formerly the Federal Home Loan Bank 11.19 Board series, or its successor agency, for the most recent 11.20 calendar month, reported on a monthly basis in the latest 11.21 statistical release of the Board of Governors of the Federal 11.22 Reserve System. This yield, rounded to the nearest quarter of 11.23 one percent, is the annual interest rate for sales of state land 11.24 during the succeeding calendar year. 11.25 (d) For state land sales in calendar year 1993 after July 11.26 1, 1993, the rate is eight percent, which is the September 1992 11.27 average from the Office of Thrift Supervision series, rounded to 11.28 the nearest quarter of one percent. 11.29 Sec. 15. Minnesota Statutes 2002, section 92.06, is 11.30 amended by adding a subdivision to read: 11.31 Subd. 1a. [TERMS FOR LAND SALES AFTER JULY 1, 11.32 2004.] Notwithstanding subdivision 1, for state land sales on or 11.33 after July 1, 2004, the purchaser must pay at the time of sale 11.34 ten percent of the total amount bid and the remainder of the 11.35 payment is due within 90 days of the sale date. A person who 11.36 fails to make final payment within 90 days of the sale date is 12.1 in default. On default, all right, title, and interest of the 12.2 purchaser or heirs, representatives, or assigns of the purchaser 12.3 in the premises shall terminate without the state doing any act 12.4 or thing. A record of the default must be made in the state 12.5 land records of the commissioner. 12.6 Sec. 16. Minnesota Statutes 2002, section 92.06, 12.7 subdivision 2, is amended to read: 12.8 Subd. 2. [BUILDINGS OR IMPROVEMENTS.] If there are 12.9 buildings or other improvements upon the land, their value must 12.10 be appraiseddetermined separately and included in the purchase 12.11 price. A person must not remove, injure, or destroy a building 12.12 or other improvement until an amount equal to its appraised12.13 determined value has been paid on the purchase price of the 12.14 premises, in addition to any payment required for timber. 12.15 Violation of this provision is a gross misdemeanor. 12.16 Sec. 17. Minnesota Statutes 2002, section 92.06, 12.17 subdivision 4, is amended to read: 12.18 Subd. 4. [IMPROVEMENTS, WHEN PAYMENT NOT NECESSARY.] (a) 12.19 If a person has made improvements to the land and if: (1) the 12.20 commissioner believes that person settled the land in good faith 12.21 as homestead land under the laws of the United States before it 12.22 was certified to the state, (2) the improvements were lawfully 12.23 made by that person as a lessee of the state, or (3) the 12.24 commissioner determines, based on clear and convincing evidence 12.25 provided by the person, that the improvements were made by the 12.26 person as an inadvertent trespasser, then the value of the 12.27 improvements must be separately appraiseddetermined and, if the 12.28 settler, lessee, or inadvertent trespasser purchases the land, 12.29 the settler, lessee, or inadvertent trespasser is not required 12.30 to pay for the improvements. If another person purchases the 12.31 land, that person must pay the owner of the improvements, in 12.32 addition to all other required payments, the appraised12.33 determined amount for the improvements. 12.34 (b) Payment for improvements must be made within 15 days of 12.35 the auction sale, either in cash or upon terms and conditions 12.36 agreeable to the owner of the improvements. If payment for 13.1 improvements is not made in cash, and if there is no agreement 13.2 between the parties within 15 days of the auction sale, the 13.3 commissioner may: 13.4 (1) sell the property to the second highest qualified 13.5 bidder if that bidder submitted to the commissioner's 13.6 representative, at the auction sale, a written request to buy 13.7 the property at a specified price; or 13.8 (2) void the sale and reoffer the property at a subsequent 13.9 sale. 13.10 (c) This subdivision does not apply unless the owner of the 13.11 improvements makes a verified application to the commissioner 13.12 showing entitlement to the improvements before the first state 13.13 public sale at which the land is offered for sale. The 13.14 applicant must appear at the sale and offer to purchase the land 13.15 for at least its appraiseddetermined value including all timber 13.16 on it, and make the purchase if no higher bid is received. 13.17 Actions or other proceedings involving the land in question 13.18 begun before the sale must have been completed. 13.19 Sec. 18. Minnesota Statutes 2002, section 92.06, 13.20 subdivision 5, is amended to read: 13.21 Subd. 5. [FURTHER SECURITY.] The directorcommissioner may 13.22 require of the purchaser security for the payment of the 13.23 deferred installments. The directorcommissioner may recover 13.24 the money and enforce any security by action brought in the 13.25 director's name. 13.26 Sec. 19. Minnesota Statutes 2002, section 92.08, is 13.27 amended to read: 13.28 92.08 [SURVEYS AND RESURVEYS.] 13.29 (a) The commissioner may have surveys made to determine the 13.30 correct boundaries or description of the land or to dispose of 13.31 it in convenient parcels. When the commissioner determines that 13.32 the interest of the state will be promoted, the commissioner may 13.33 subdivide land controlled by the commissioner into smaller 13.34 parcels or city lots. 13.35 (b) When the commissioner believes that an injustice has 13.36 been done the purchaser because of an incorrect United States 14.1 survey, the commissioner may have a resurvey made by a competent 14.2 surveyor. The surveyor shall prepare a plat showing the correct 14.3 acreage of each subdivision resurveyed and file it with the 14.4 commissioner and with the county recorder of the proper county. 14.5 The commissioner may call in the land certificates affected by 14.6 the resurvey and issue new ones. The certificates must show the 14.7 correct acreage and give full credit for all payments of 14.8 principal and interest made. 14.9 Sec. 20. Minnesota Statutes 2002, section 92.10, 14.10 subdivision 2, is amended to read: 14.11 Subd. 2. [PREPARATION.] The commissioner shall prepare 14.12 suitable maps or plats designating school or other state lands 14.13 owned by the state which have been appraised andthat are 14.14 subject to sale. The maps or plats must be printed and 14.15 distributed with other printed matter in sufficient quantities 14.16 to properly advertise the sales provided by this chapter. 14.17 Sec. 21. [92.115] [VALUATION OF STATE LANDS; MINIMUM BID.] 14.18 Subdivision 1. [LAND VALUATION REQUIRED.] Before offering 14.19 any state land for sale under this chapter, the commissioner 14.20 must establish the value of the land. The commissioner shall 14.21 have the land appraised if the estimated market value is in 14.22 excess of $50,000. 14.23 Subd. 2. [MINIMUM BID.] The minimum bid for a parcel of 14.24 land must include the estimated value or appraised value of the 14.25 land and any improvements and, if any of the land is valuable 14.26 for merchantable timber, the value of the merchantable timber. 14.27 The minimum bid may include expenses incurred by the 14.28 commissioner in rendering the property salable, including 14.29 survey, appraisal, legal, advertising, and other expenses. 14.30 Sec. 22. Minnesota Statutes 2002, section 92.12, 14.31 subdivision 1, is amended to read: 14.32 Subdivision 1. [APPRAISERS.] The commissioner may have any 14.33 school trust or other state lands appraised. The appraisals 14.34 must be made by regularly appointed and qualified state 14.35 appraisers. Each appraiser shall take and sign an oath to14.36 faithfully and impartially discharge the duties of appraiser as15.1 best able and that the appraiser is not interested directly or15.2 indirectly in the state lands to be appraised, or the timber or15.3 improvements on them or in their purchase. The oath must be15.4 attached to the appraisal report.To be qualified, an appraiser 15.5 must hold a state appraiser license issued by the Department of 15.6 Commerce. The appraisal must be in conformity with the Uniform 15.7 Standards of Professional Appraisal Practice of the Appraisal 15.8 Foundation. 15.9 Sec. 23. Minnesota Statutes 2002, section 92.12, 15.10 subdivision 2, is amended to read: 15.11 Subd. 2. [VALUATION AND APPRAISAL.] The appraiser shall 15.12 view and appraise the lands, including the merchantable timber 15.13 and improvements on them, and make a report to the 15.14 commissioner. The valuation of the lands and the merchantable 15.15 timber and improvements on them must each be made and stated15.16 separately in the appraisal. The minimum price established by 15.17 the appraisal is the minimum price for the lands until changed 15.18 by later appraisal. No school or other state lands may be sold15.19 until appraised.The price may not be less than $5 an acre. In15.20 the appraisal the value of the land before the addition of the15.21 value of merchantable timber and improvements must include the15.22 value of timber reproduction.15.23 Sec. 24. Minnesota Statutes 2002, section 92.12, 15.24 subdivision 4, is amended to read: 15.25 Subd. 4. [SALES.] The commissioner shall hold frequent 15.26 sales of school trust and other state lands. The time and place15.27 of the sales must be publicly posted in the courthouse in the15.28 county where the lands are located and in the courthouse in the15.29 county where the sale is to take place at least 30 days in15.30 advance, in addition to the regular notice of sale provided by15.31 law. At this saleThe commissioner shall sell lands the 15.32 commissioner considers best for the public interest. 15.33 Sec. 25. Minnesota Statutes 2002, section 92.12, 15.34 subdivision 5, is amended to read: 15.35 Subd. 5. [SALE OF LAND AND TIMBER.] When the appraisal and15.36 or other reports show that the land is mainly valuable for 16.1 agricultural purposes and contains only small quantities of 16.2 timber, the commissioner may either sell the timber separately 16.3 as provided by law for state timber sales or sell the land as 16.4 agricultural land. If the land is sold as agricultural land the 16.5 purchaser must pay down as first payment an amount equal to the 16.6 value of the timber, in addition to the first payment required 16.7 on the land. If the appraisal and other reports show land 16.8 should be sold for continuous forest production or other 16.9 conservation purpose, the commissioner may require that the full 16.10 appraised value of land and timber must be paid by the purchaser 16.11 at the time of purchase. 16.12 Sec. 26. Minnesota Statutes 2002, section 92.14, 16.13 subdivision 1, is amended to read: 16.14 Subdivision 1. [TIME.] At least 30 days before a sale, the 16.15 commissioner shall give four weeks'published notice of the sale 16.16 at St. Paul,in each county containing land to be sold, and in 16.17 the county where the sale will be held. If there is no 16.18 newspaper published in the county, four weeks'posted notice in 16.19 the county courthouse must be given. The commissioner shall 16.20 also provide electronic notice of sale. On or before the day of 16.21 sale, the commissioner may withdraw any lands. 16.22 Sec. 27. [92.145] [UNSOLD LANDS.] 16.23 Except for school trust lands, parcels remaining unsold 16.24 after the public sale offering may be sold to anyone agreeing to 16.25 pay the minimum bid established for the public sale. The sale 16.26 shall continue until all eligible parcels have been sold or the 16.27 commissioner withdraws the remaining parcels from sale. 16.28 Sec. 28. Minnesota Statutes 2002, section 92.16, is 16.29 amended by adding a subdivision to read: 16.30 Subd. 5. [LANDS SALES AFTER JULY 1, 2004.] Notwithstanding 16.31 subdivisions 1 to 4, no certificate of sale shall be issued for 16.32 land sold on or after July 1, 2004. The terms of payment for 16.33 land sales on or after July 1, 2004, are as provided in section 16.34 92.06, subdivision 1a. 16.35 Sec. 29. Minnesota Statutes 2002, section 92.28, is 16.36 amended to read: 17.1 92.28 [PROCEEDS OF SALES; DISTRIBUTION.] 17.2 (a) A portion of the proceeds from the sale, equal in 17.3 amount to the survey, appraisal, legal, advertising, and other 17.4 expenses incurred by the commissioner in rendering the property 17.5 salable and included in the minimum bid amount, shall be 17.6 remitted to the account from which the expenses were paid and 17.7 are appropriated and immediately available for expenditure in 17.8 the same manner as other money in the account. 17.9 (b) The principal sumsremainder of the proceeds accruing 17.10 from all sales by the commissioner of school, university, 17.11 internal improvement, or other state lands, or of pine timber 17.12 upon state lands must be deposited in the several permanent 17.13 funds to which they, respectively, belong. The sums may not be17.14 reduced by any costs or charges of officers, by fees, or any17.15 other means.17.16 (c) Money received as interest on the funds, as penalties, 17.17 or as rents of the lands, must be deposited in the current or 17.18 general funds to which they belong. Interest and penalties on 17.19 the internal improvement land fund, and rents of the land, must 17.20 be compounded with the permanent fund. 17.21 Sec. 30. Minnesota Statutes 2002, section 92.29, is 17.22 amended to read: 17.23 92.29 [LAND PATENTS.] 17.24 The commissioner of natural resources shall sign and issue 17.25 in the name of the state and under the seal of the state a 17.26 patent for the land described in any certificate of sale when 17.27 the principal and interest specified in the certificate of sale 17.28 and all delinquent taxes due on the land have been paid. The 17.29 patent shall be issued to the purchaser named in the certificate 17.30 of sale, or the purchaser's successor in interest by execution, 17.31 judicial, mortgage or tax sale, or the assignee, vendee, heir or 17.32 devisee of the purchaser, as shown by a properly certified 17.33 abstract of title or other evidence if the purchaser's successor 17.34 is a person other than the purchaser named in the certificate of 17.35 sale. If the certificate of sale has become lost or destroyed, 17.36 an affidavit stating that fact or a certified copy of the 18.1 certificate must be submitted by the applicant for a 18.2 patent. When total payment is made within 90 days of the sale, 18.3 the commissioner shall sign and issue, in the name of the state 18.4 and under the seal of the state, a patent for the land sold. 18.5 Sec. 31. Minnesota Statutes 2002, section 92.321, 18.6 subdivision 1, is amended to read: 18.7 Subdivision 1. [COMMISSIONER MAY SELL LANDS.] The 18.8 commissioner of natural resources may appraise andsell any 18.9 unreserved state public land which in the commissioner's opinion 18.10 is suitable for private forest management. 18.11 Sec. 32. Minnesota Statutes 2002, section 94.09, 18.12 subdivision 1, is amended to read: 18.13 Subdivision 1. [APPLICABILITY.] All tracts or lots of real18.14 property belonging to the state of Minnesota or that may18.15 hereafter accrue to the state, including tracts or lots which18.16 have escheated to the state, may be disposed of in accordance18.17 with sections 94.09 to 94.16; provided, sections 94.09 to 94.1618.18 shall not apply to school or other trust fund lands, belonging18.19 to the state, or that may hereafter accrue to the state, under18.20 and by virtue of any act of Congress or to any other state-owned18.21 lands the sale or disposition of which is otherwise provided for18.22 by law.All tracts or lots of real property belonging to the 18.23 state and under the control and supervision of the commissioner 18.24 of natural resources shall be disposed of according to sections 18.25 94.09 to 94.16, unless otherwise provided by law. 18.26 Sec. 33. Minnesota Statutes 2002, section 94.09, 18.27 subdivision 3, is amended to read: 18.28 Subd. 3. [NOTICE TO AGENCIES; DETERMINATION OF SURPLUS.] 18.29 On or before October 1 of each year, the commissioner of18.30 administration shall review the certifications of heads of each18.31 department or agency provided for in this section.The 18.32 commissioner of natural resources shall send written notice to 18.33 all state departments, agencies and the University of Minnesota 18.34 describing any lands or tracts which may be declared surplus. 18.35 If a department or agency or the University of Minnesota desires 18.36 custody of the lands or tracts, it shall submit a written 19.1 request to the commissioner, no later than four calendar weeks 19.2 after mailing of the notice, setting forth in detail its reasons 19.3 for desiring to acquire, and its intended use of, the land or 19.4 tract. The commissioner of administrationshall then determine 19.5 whether any of the lands described in the certifications of the 19.6 heads of the departments or agencies should be declared surplus 19.7 and offered for sale or otherwise disposed of by transferring 19.8 custodial control to other requesting state departments or 19.9 agencies or to the Board of Regents of the University of 19.10 Minnesota for educational purposes, provided however that 19.11 transfer to the Board of Regents shall not be determinative of 19.12 tax exemption or immunity. If the commissioner determines that 19.13 any of suchthe lands are no longer needed for state purposes, 19.14 the commissioner shall make findings of fact, describe the 19.15 lands, declare suchthe lands to be surplus state land, and 19.16 state the reasons for the sale or disposition thereof, and19.17 notify the state Executive Council of such determinationof the 19.18 lands. 19.19 Sec. 34. Minnesota Statutes 2002, section 94.10, is 19.20 amended to read: 19.21 94.10 [SURVEYS, APPRAISALS, AND SALE.] 19.22 Subdivision 1. [APPRAISAL; NOTICE AND OFFER TO PUBLIC 19.23 BODIES.] (a) Before offering any surplus state-owned lands for 19.24 sale, the commissioner of administration may survey suchnatural 19.25 resources must establish the value of the lands , and if the19.26 value thereof is estimated to be $40,000 or less, may have such19.27 lands appraised. The commissioner shall have the lands 19.28 appraised if the estimated value is in excess of 19.29 $40,000$50,000. The appraiser shall before entering upon the19.30 duties of the office take and subscribe an oath that the19.31 appraiser will faithfully and impartially discharge the duties19.32 as appraiser according to the best of the appraiser's ability19.33 and that the appraiser is not interested directly or indirectly19.34 in any of the lands to be appraised or the timber or19.35 improvements thereon or in the purchase thereof and has entered19.36 into no agreement or combination to purchase the same or any20.1 part thereof, which oath shall be attached to the report of such20.2 appraisalNo parcel of state-owned land shall be sold for less 20.3 than $1,000. 20.4 (b) The appraisals must be made by regularly appointed and 20.5 qualified state appraisers. To be qualified, an appraiser must 20.6 hold a state appraiser license issued by the Department of 20.7 Commerce. The appraisal must be in conformity with the Uniform 20.8 Standards of Professional Appraisal Practice of the Appraisal 20.9 Foundation. 20.10 (c) Before offering suchsurplus state-owned lands for 20.11 public sale, suchthe lands shall first be offered to the city, 20.12 county, town, school district, or other public body corporate or 20.13 politic in which the lands are situated for public purposes 20.14 and theythe lands may be sold for suchpublic purposes for not 20.15 less than the appraised value thereofof the lands. To 20.16 determine whether a public body desires to purchase the surplus 20.17 land, the commissioner of administrationnatural resources shall 20.18 give a written notice to the governing body of each political 20.19 subdivision whose jurisdictional boundaries include or are 20.20 adjacent to the surplus land. If a public body desires to 20.21 purchase the surplus land, it shall submit a written offer to 20.22 the commissioner notno later than two weeks after receipt of 20.23 notice setting forth in detail its reasons for desiring to 20.24 acquire and its intended use of the land. In the event that 20.25 more than one public body tenders an offer, the commissioner 20.26 shall determine which party shall receive the property ,and 20.27 shall submit written findings regarding the decision. If lands 20.28 are offered for sale for suchpublic purposes ,and if a public 20.29 body notifies the commissioner of administrationof its desire 20.30 to acquire suchthe lands, the public body may have not to20.31 exceedup to two years from the date of the accepted offer to 20.32 commence payment for the lands in the manner provided by law. 20.33 Subd. 2. [PUBLIC SALE REQUIREMENTS.] (a) Lands certified20.34 as surplus by the head of a department or agency other than the20.35 Department of Natural Resources shall be offered for public sale20.36 by the commissioner of administration as provided in this21.1 paragraph.After complying with subdivision 1 and before any 21.2 public sale of surplus state-owned land is made and at least 30 21.3 days before the sale, the commissioner of administrationnatural 21.4 resources shall publish a notice thereof at least once in each21.5 week for four successive weeks in a legal newspaper and alsoof 21.6 the sale in a newspaper of general distribution in the city or21.7 county in which the real property to be sold is situated ,21.8 which. The notice shall specify the time and place at which the 21.9 sale will commence, a general description of the lots or tracts 21.10 to be offered, and a general statement of the terms of 21.11 sale. Each tract or lot shall be sold separately and shall be21.12 sold for not less than the appraised value thereof.The 21.13 commissioner shall also provide electronic notice of sale. 21.14 (b) The minimum bid for a parcel of land must include the 21.15 estimated value or appraised value of the land and any 21.16 improvements and, if any of the land is valuable for 21.17 merchantable timber, the value of the merchantable timber. The 21.18 minimum bid may include expenses incurred by the commissioner in 21.19 rendering the property salable, including survey, appraisal, 21.20 legal, advertising, and other expenses. 21.21 (c) Parcels remaining unsold after the offering may be sold 21.22 to anyone agreeing to pay the appraised value thereof. The sale 21.23 shall continue until all parcels are sold or until the 21.24 commissioner orders a reappraisal or withdraws the remaining 21.25 parcels from sale. 21.26 (b) Lands certified as surplus by the commissioner of21.27 natural resources shall be offered for public sale by the21.28 commissioner of natural resources in the manner provided in21.29 paragraph (a) for sales by the commissioner of administration.21.30 (c) Except as provided in section 94.11, the cost of any21.31 survey or appraisal as provided in subdivision 1 shall be added21.32 to and made a part of the appraised value of the lands to be21.33 sold, whether to any political subdivision of the state or to a21.34 private purchaser as provided in this subdivision.21.35 Sec. 35. Minnesota Statutes 2002, section 94.11, is 21.36 amended to read: 22.1 94.11 [TERMS OF PAYMENT.] 22.2 Not less than ten percent of the purchase price shall be22.3 paid at the time of sale with the balance payable as follows:22.4 If the purchase price of any lot or parcel is $5,000 or less,22.5 the balance shall be paid within 90 days of the date of sale.22.6 If the purchase price of any lot or parcel is in excess of22.7 $5,000, the balance shall be paid in equal annual installments22.8 for not more than five years, at the option of the purchaser,22.9 with principal and interest payable annually in advance at a22.10 rate equal to the rate in effect at the time under section22.11 549.09 on the unpaid balance, payable to the state treasury on22.12 or before June 1 each year. Any installment of principal or22.13 interest may be prepaid.Terms of payment for lands sold by the 22.14 commissioner of natural resources before July 1, 2004, are the 22.15 same as those provided for state public lands by section 92.06, 22.16 subdivision 1. For lands sold by the commissioner of natural 22.17 resources on or after July 1, 2004, the terms of payment are the 22.18 same as those provided for state public lands by section 92.06, 22.19 subdivision 1a. 22.20 Sec. 36. Minnesota Statutes 2002, section 94.12, is 22.21 amended to read: 22.22 94.12 [CONTRACT FOR DEED AND QUITCLAIM DEED.] 22.23 Subdivision 1. [LANDS SOLD BEFORE JULY 1, 2004.] In the22.24 event a purchaser elects to purchase surplus real property on an22.25 installment basis, the commissioner of administration shall22.26 enter into a contract for deed with the purchaser thereof in22.27 which shall be set forth the description of the real property22.28 sold and the price thereof, the consideration paid and to be22.29 paid therefor, the rate of interest, and time and terms of22.30 payment. This contract for deed shall be made assignable and22.31 shall further set forth that in case of the nonpayment of the22.32 annual principal or interest payment due by the purchaser, or22.33 any person claiming under the purchaser, then the contract for22.34 deed, from the time of such failure, will be entirely void and22.35 of no effect and the state may be repossessed of the lot or22.36 tract and may resell the same as provided in sections 94.09 to23.1 94.16.In the event the terms and conditions of a contract for 23.2 deed for lands sold before July 1, 2004, are completely 23.3 fulfilled or if a purchaser makes a lump sum payment for the 23.4 subject property in lieu of entering into a contract for deed, 23.5 the commissioner of administration,shall sign and cause to be 23.6 issued a quitclaim deed on behalf of the state. Said quitclaim 23.7 deed shall be in a form prescribed by the attorney general and 23.8 shall vest in purchaser all of the state's interest in the 23.9 subject property except as provided in section 94.14. 23.10 Subd. 2. [LANDS SOLD AFTER JULY 1, 2004.] On or after July 23.11 1, 2004, when total payment is made within 90 days of the sale, 23.12 the commissioner of natural resources shall sign and cause to be 23.13 issued a quitclaim deed on behalf of the state. The quitclaim 23.14 deed shall be in a form prescribed by the attorney general and 23.15 shall vest in the purchaser all of the state's interest in the 23.16 subject property, except as provided in section 94.14. 23.17 Sec. 37. Minnesota Statutes 2002, section 94.13, is 23.18 amended to read: 23.19 94.13 [RECORD OF CONTRACTS FOR DEED AND ASSIGNMENTS; 23.20 EFFECT.] 23.21 (a) A contract for deed issued before July 1, 2004, 23.22 pursuant to sections 94.09 to 94.16, or any assignment thereof, 23.23 executed and acknowledged as provided by law for the execution 23.24 and acknowledgment of deeds may be recorded in the office of the 23.25 county recorder of any county in the state in the same manner 23.26 and with like effect as deeds are therein recorded. This 23.27 contract for deed shall entitle the purchaser thereof, or the 23.28 heirs and assigns of the purchaser, to the exclusive possession 23.29 of the land therein described, provided its terms have been in 23.30 all respects complied with, and the contract for deed and the 23.31 record thereof shall be conclusive evidence of title in the 23.32 purchaser, or the heirs and assigns of the purchaser, for all 23.33 purposes and against all persons, except the state of Minnesota 23.34 in case of forfeiture. 23.35 (b) When a contract for deed or partial interest in a 23.36 contract for deed is assigned, the assignment must be made on a 24.1 form provided by the commissioner, executed by the assignor and 24.2 assignee, and consented to by the commissioner. An assignment 24.3 of a partial interest must state that payment to date has been 24.4 made to the commissioner. 24.5 (c) When the assignee satisfies the terms of the assignment 24.6 and corresponding terms of the contract for deed, the 24.7 commissioner shall issue a deed to the assignee. 24.8 Sec. 38. Minnesota Statutes 2002, section 94.16, 24.9 subdivision 2, is amended to read: 24.10 Subd. 2. [PAYMENT OF EXPENSES.] A portion of the proceeds 24.11 from the sale equal in amount to the survey, appraisal, legal, 24.12 advertising, and other expenses incurred by the commissioner of 24.13 administration or other state officialnatural resources in 24.14 rendering the property salable shall be remitted to the account 24.15 from which the expenses were paid, and are appropriated and 24.16 immediately available for expenditure in the same manner as 24.17 other money in the account. 24.18 Sec. 39. Minnesota Statutes 2003 Supplement, section 24.19 525.161, is amended to read: 24.20 525.161 [NO SURVIVING SPOUSE OR KINDRED, NOTICES TO 24.21 ATTORNEY GENERAL.] 24.22 When it appears from the petition or application for 24.23 administration of the estate, or otherwise, in a proceeding in 24.24 the court that the intestate left surviving no spouse or 24.25 kindred, the court shall give notice of such fact and notice of 24.26 all subsequent proceedings in such estate to the attorney 24.27 general forthwith; and the attorney general shall protect the 24.28 interests of the state during the course of administration. The 24.29 residue which escheats to the state shall be transmitted to the 24.30 attorney general. All moneys, stocks, bonds, notes, mortgages 24.31 and other securities, and all other personal property so 24.32 escheated shall then be given into the custody of the 24.33 commissioner of finance who shall immediately credit the moneys 24.34 received to the general fund. The commissioner of finance shall 24.35 hold such stocks, bonds, notes, mortgages and other securities, 24.36 and all other personal property, subject to such investment, 25.1 sale or other disposition as the State Board of Investment may 25.2 direct pursuant to section 11A.04, clause (9). The attorney 25.3 general shall immediately report to the State Executive Council 25.4 all real property received in the individual escheat, and any 25.5 sale or disposition of such real estate shall be made in 25.6 accordance with sections 94.09 to 94.1616B.281 to 16B.287. 25.7 Sec. 40. Minnesota Statutes 2003 Supplement, section 25.8 525.841, is amended to read: 25.9 525.841 [ESCHEAT RETURNED.] 25.10 In all such cases the commissioner of finance shall be 25.11 furnished with a certified copy of the court's order assigning 25.12 the escheated property to the persons entitled thereto, and upon 25.13 notification of payment of the estate tax, the commissioner of 25.14 finance shall draw a warrant or execute a proper conveyance to 25.15 the persons designated in such order. In the event any 25.16 escheated property has been sold pursuant to sections 11A.04, 25.17 clause (9), and 11A.10, subdivision 2, or 94.09 to 94.1616B.281 25.18 to 16B.287, then the warrant shall be for the appraised value as 25.19 established during the administration of the decedent's estate. 25.20 There is hereby annually appropriated from any moneys in the 25.21 state treasury not otherwise appropriated an amount sufficient 25.22 to make payment to all such designated persons. No interest 25.23 shall be allowed on any amount paid to such persons. 25.24 Sec. 41. [REPEALER.] 25.25 Minnesota Statutes 2002, sections 92.09; 92.11; and 94.09, 25.26 subdivisions 2, 4, 5, and 6, are repealed. 25.27 Sec. 42. [EFFECTIVE DATE.] 25.28 Sections 1 to 41 are effective July 1, 2004. 25.29 ARTICLE 2 25.30 STATE LAND MANAGEMENT 25.31 Section 1. Minnesota Statutes 2002, section 84.0272, is 25.32 amended by adding a subdivision to read: 25.33 Subd. 3. [MINIMAL VALUE ACQUISITION.] (a) Notwithstanding 25.34 subdivision 1, if the commissioner determines that lands or 25.35 interests in land have a value less than $5,000, the 25.36 commissioner may acquire the lands for the value determined by 26.1 the commissioner without an appraisal. The commissioner shall 26.2 make the determination based upon available information 26.3 including, but not limited to: 26.4 (1) the most recent assessed market value of the land or 26.5 interests in land as determined by the county assessor of the 26.6 county in which the land or interests in land is located; 26.7 (2) a sale price of the land or interests in land, provided 26.8 the sale occurred within the past year; 26.9 (3) the sale prices of comparable land or interests in land 26.10 located in the vicinity and sold within the past year; or 26.11 (4) an appraisal of the land or interests in land conducted 26.12 within the past year. 26.13 (b) In the event the value is minimal, the commissioner may 26.14 add a transaction incentive, provided that the sum of the 26.15 incentive plus the value of the land does not exceed $1,000. 26.16 Sec. 2. Minnesota Statutes 2002, section 84.0272, is 26.17 amended by adding a subdivision to read: 26.18 Subd. 4. [AGREEMENT BY LANDOWNER.] The commissioner shall 26.19 utilize the valuation methods prescribed in subdivisions 2 and 3 26.20 only with prior consent of the landowner from whom the state 26.21 proposes to purchase land or interests in land. 26.22 Sec. 3. Minnesota Statutes 2002, section 86A.05, 26.23 subdivision 14, is amended to read: 26.24 Subd. 14. [AQUATIC MANAGEMENT AREAS.] (a) Aquatic 26.25 management areas may be established to protect, develop, and 26.26 manage lakes, rivers, streams, and adjacent wetlands and lands 26.27 that are critical for fish and other aquatic life, for water 26.28 quality, and for their intrinsic biological value, public 26.29 fishing, or other compatible outdoor recreational uses. 26.30 (b) Aquatic management areas may be established to protect 26.31 wetland areas under ten acres that are donated to the Department 26.32 of Natural Resources. 26.33 (c) No unit may be authorized unless it meets one or more 26.34 of the following criteria: 26.35 (1) provides angler or management access; 26.36 (2) protects fish spawning, rearing, or other unique 27.1 habitat; 27.2 (3) protects aquatic wildlife feeding and nesting areas; 27.3 (4) protects critical shoreline habitat; or 27.4 (5) provides a site for research on natural history. 27.5 (d) Aquatic management areas must be administered by the 27.6 commissioner of natural resources in a manner consistent with 27.7 the purposes of this subdivision to perpetuate and, if 27.8 necessary, reestablish high quality aquatic habitat for 27.9 production of fish, wildlife, and other aquatic species. Public 27.10 fishing and other uses shall be consistent with the limitations 27.11 of the resource, including the need to preserve adequate 27.12 populations and prevent long-term habitat injury or excessive 27.13 fish population reduction or increase. Public access to aquatic 27.14 management areas may be closed during certain time periods. 27.15 (e) State-owned lands or waters, or any state-owned 27.16 interests in lands or waters, acquired before August 1, 2000, 27.17 that meet the criteria of this subdivision and that have been 27.18 administered by the commissioner of natural resources as fish 27.19 management areas or other areas of fishery interest are 27.20 authorized as units of the outdoor recreation system upon 27.21 designation by the commissioner of natural resources as aquatic 27.22 management areas. 27.23 Sec. 4. Minnesota Statutes 2002, section 92.121, is 27.24 amended to read: 27.25 92.121 [PERMANENT SCHOOL FUND LANDS.] 27.26 The commissioner of natural resources shall exchange 27.27 permanent school fund land as defined in the Minnesota 27.28 Constitution, article XI, section 8, located in state parks, 27.29 state recreation areas, wildlife management areas, scientific 27.30 and natural areas, or state waysides or on lands managed by the 27.31 commissioner as old growth stands, for other lands as allowed by 27.32 the Minnesota Constitution, article XI, section 10, and section 27.33 94.343, subdivision 1, that are compatible with the goal of the 27.34 permanent school fund lands in section 127A.31 when, as a result 27.35 of management practices applied to the permanent school fund 27.36 lands and associated resources, revenue generation has been 28.1 diminished or is prohibited and no alternative has been put into 28.2 effect to compensate the permanent school fund for the income 28.3 losses. 28.4 Sec. 5. Minnesota Statutes 2002, section 282.01, 28.5 subdivision 3, is amended to read: 28.6 Subd. 3. [NONCONSERVATION LANDS; APPRAISAL AND SALE.] All 28.7 parcels of land classified as nonconservation, except those 28.8 which may be reserved, shall be sold as provided, if it is 28.9 determined, by the county board of the county in which the 28.10 parcels lie, that it is advisable to do so, having in mind their 28.11 accessibility, their proximity to existing public improvements, 28.12 and the effect of their sale and occupancy on the public 28.13 burdens. Any parcels of land proposed to be sold shall be first 28.14 appraised by the county board of the county in which the parcels 28.15 lie. The parcels may be reappraised whenever the county board 28.16 deems it necessary to carry out the intent of sections 282.01 to 28.17 282.13. In an appraisal the value of the land and any standing 28.18 timber on it shall be separately determined. No parcel of land 28.19 containing any standing timber may be sold until the appraised 28.20 value of the timber on it and the sale of the land have been 28.21 approved by the commissioner of natural resources. The 28.22 commissioner shall base review of a proposed sale on the policy 28.23 and considerations specified in subdivision 1. The decision of 28.24 the commissioner shall be in writing and shall state the reasons 28.25 for it. The county may appeal the decision of the commissioner 28.26 in accordance with chapter 14. 28.27 In any county in which a state forest or any part of it is 28.28 located, the county auditor shall submit to the commissioner at 28.29 least 3060 days before the first publication of the list of 28.30 lands to be offered for sale a list of all lands included on the 28.31 list which are situated outside of any incorporated municipality. 28.32 If, at any time before the opening of the sale, the commissioner 28.33 notifies the county auditor in writing that there is standing 28.34 timber on any parcel of such land, the parcel shall not be sold 28.35 unless the requirements of this section respecting the separate 28.36 appraisal of the timber and the approval of the appraisal by the 29.1 commissioner have been complied with. The commissioner may 29.2 waive the requirement of the 30-day60-day notice as to any 29.3 parcel of land which has been examined and the timber value 29.4 approved as required by this section. 29.5 If any public improvement is made by a municipality after 29.6 any parcel of land has been forfeited to the state for the 29.7 nonpayment of taxes, and the improvement is assessed in whole or 29.8 in part against the property benefited by it, the clerk of the 29.9 municipality shall certify to the county auditor, immediately 29.10 upon the determination of the assessments for the improvement, 29.11 the total amount that would have been assessed against the 29.12 parcel of land if it had been subject to assessment; or if the 29.13 public improvement is made, petitioned for, ordered in or 29.14 assessed, whether the improvement is completed in whole or in 29.15 part, at any time between the appraisal and the sale of the 29.16 parcel of land, the cost of the improvement shall be included as 29.17 a separate item and added to the appraised value of the parcel 29.18 of land at the time it is sold. No sale of a parcel of land 29.19 shall discharge or free the parcel of land from lien for the 29.20 special benefit conferred upon it by reason of the public 29.21 improvement until the cost of it, including penalties, if any, 29.22 is paid. The county board shall determine the amount, if any, 29.23 by which the value of the parcel was enhanced by the improvement 29.24 and include the amount as a separate item in fixing the 29.25 appraised value for the purpose of sale. In classifying, 29.26 appraising, and selling the lands, the county board may 29.27 designate the tracts as assessed and acquired, or may by 29.28 resolution provide for the subdivision of the tracts into 29.29 smaller units or for the grouping of several tracts into one 29.30 tract when the subdivision or grouping is deemed advantageous 29.31 for the purpose of sale. Each such smaller tract or larger 29.32 tract must be classified and appraised as such before being 29.33 offered for sale. If any such lands have once been classified, 29.34 the board of county commissioners, in its discretion, may, by 29.35 resolution, authorize the sale of the smaller tract or larger 29.36 tract without reclassification. 30.1 Sec. 6. [ADDITIONS TO BELTRAMI ISLAND STATE FOREST.] 30.2 [89.021] [Subd. 5.] [BELTRAMI ISLAND STATE FOREST.] The 30.3 following areas are added to Beltrami Island State Forest: 30.4 (1) the Southwest Quarter of the Southeast Quarter of 30.5 Section 29, Township 156 North, Range 37 West, Beltrami County; 30.6 and 30.7 (2) the North Half of the Northeast Quarter; the Southwest 30.8 Quarter of the Northeast Quarter; and the North Half of the 30.9 Northwest Quarter, all in Section 17, Township 156 North, Range 30.10 37 West, Beltrami County. 30.11 Sec. 7. [ADDITIONS TO STATE WILDLIFE MANAGEMENT AREAS.] 30.12 Subdivision 1. [97A.133] [Subd. 34.] [LEE WILDLIFE 30.13 MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 30.14 to Lee Wildlife Management Area: the Southwest Quarter of the 30.15 Northwest Quarter of Section 35, Township 155 North, Range 38 30.16 West, Beltrami County. 30.17 Subd. 2. [97A.133] [Subd. 44.] [RED LAKE WILDLIFE 30.18 MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 30.19 to Red Lake Wildlife Management Area: the Northeast Quarter of 30.20 Section 28, Township 155 North, Range 32 West, Beltrami County. 30.21 Subd. 3. [97A.133] [Subd. 50.] [SAW-WHET WILDLIFE 30.22 MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 30.23 to Saw-Whet Wildlife Management Area: the Southwest Quarter of 30.24 the Southwest Quarter; and the Southwest Quarter of the 30.25 Southeast Quarter, all in Section 8, Township 155 North, Range 30.26 37 West, Beltrami County. 30.27 Sec. 8. [EFFECTIVE DATE.] 30.28 Sections 1 to 7 are effective July 1, 2004.