HF 2892

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 03:50pm

A bill for an act
relating to state lands; creating a pilot land exchange process for tax-forfeited
lands in Itasca County.

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

Section 1. new text begin PILOT TAX-FORFEITED LAND EXCHANGE PROCESS; ITASCA
COUNTY.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose and scope. new text end

new text begin Until December 31, 2015, this section applies
to exchanges of tax-forfeited land in Itasca County. Notwithstanding the provisions in
Minnesota Statutes, sections 94.342 to 94.3495, exchanges of tax-forfeited land in Itasca
County shall be conducted as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Valuation of land. new text end

new text begin (a) The value of all the land shall be determined by the
Itasca County Board. To determine the value of the land, the parties to the exchange may
cause the land to be appraised, utilize the valuation process provided under Minnesota
Statutes, section 84.0272, subdivision 3, or obtain a market analysis from a qualified
real estate broker. Merchantable timber value must be determined and considered in
finalizing valuation of the lands.
new text end

new text begin (b) All lands exchanged under this section shall be exchanged only for lands of at
least substantially equal value. For the purposes of this subdivision, "substantially equal
value" has the meaning given under Minnesota Statutes, section 94.343, subdivision 3,
paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Title. new text end

new text begin Title to the land must be examined to the extent necessary for
the parties to determine that the title is good, with any encumbrances identified. Title
examination and approval of the land shall be undertaken as a condition of exchange
of land for tax-forfeited land in Itasca County. The county attorney shall examine one
or more title reports or title insurance commitments prepared or underwritten by a title
insurer licensed to conduct title insurance business in this state, regardless of whether
abstracts were created or updated in the preparation of the title reports or commitments.
The opinion of the county attorney, and approval by the attorney general, shall be based on
those title reports or commitments. The parties to the exchange may utilize title insurance
to aid in the determination.
new text end

new text begin Subd. 4. new text end

new text begin Approval by Land Exchange Board. new text end

new text begin All land exchanges under this
section, and the terms and conditions of the exchanges, require the unanimous approval of
the Land Exchange Board.
new text end

new text begin Subd. 5. new text end

new text begin Conveyance. new text end

new text begin (a) When tax-forfeited land in Itasca County is given in
exchange for other land, the deed to the other land shall first be delivered to the county
auditor. Following the recording of the deed, the commissioner of revenue shall deliver
the deed conveying the tax-forfeited land.
new text end

new text begin (b) All deeds shall be recorded or registered with Itasca County.
new text end

new text begin Subd. 6. new text end

new text begin Reversionary interest; mineral and water power rights and other
reservations. new text end

new text begin (a) All deeds conveying tax-forfeited land given in an exchange under this
section shall include a reverter that provides that title to the land automatically reverts
to tax-forfeited status if:
new text end

new text begin (1) the receiving entity sells, exchanges, or otherwise transfers title of the land
within 40 years of the date of the deed conveying ownership; and
new text end

new text begin (2) there is no prior written approval for the transfer from the Itasca County Board.
new text end

new text begin (b) Tax-forfeited land given in exchange is subject to the reservation provisions of
Minnesota Statutes, section 94.344, subdivision 4.
new text end

new text begin Subd. 7. new text end

new text begin Land status. new text end

new text begin Land received in exchange for tax-forfeited land is subject to
a trust in favor of the governmental subdivision wherein it lies and all laws relating to
tax-forfeited land.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of Itasca
County.
new text end