HF 299

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources; providing for extension, cancellation, or termination
of certain timber permits due to economic infeasibility; amending Minnesota
Statutes 2006, section 90.031, subdivision 4.

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

Section 1.

Minnesota Statutes 2006, section 90.031, subdivision 4, is amended to read:

Subd. 4.

Timber rules.

new text begin (a) new text end The Executive Council may formulate and establish,
from time to time, rules it deems advisable for the transaction of timber business of the
state, including approval of the sale of timber on any tract in a lot exceeding 6,000 cords
in volume when the sale is in the best interests of the state, and may abrogate, modify,
or suspend rules at its pleasure.

new text begin (b) If the Executive Council determines that a segment of the market for timber
products harvested in the state has noticeably declined, that such market conditions are
continuing, and that, as a result of the decline, it is economically infeasible for certain
timber permit holders to complete the cutting and removal of the timber under the terms
of the permit, the council may, notwithstanding any provisions of this chapter to the
contrary, direct the commissioner to:
new text end

new text begin (1) in the case of eligible timber permits relating to nontrust lands, extend, cancel,
terminate, or otherwise renegotiate the terms of the eligible timber permits if requested
by a permit holder, refund the full amount of the permit holder's down payment, and
release or otherwise apply to a new permit, as the permit holder elects, the full amount of
the permit holder's surety bond or cash security deposit posted in regard to the eligible
timber permit; and
new text end

new text begin (2) in the case of eligible timber permits relating to trust lands and to the extent
that such actions would secure the maximum long-term economic return from the lands
consistent with the fiduciary responsibilities imposed by law in regard to the trust lands,
extend, cancel, terminate, or otherwise renegotiate the terms of eligible timber permits
whose holders have failed or appear unlikely to pay when due the full purchase price
stated in the eligible timber permit, as requested by the permit holders. In the case of trust
land timber permits canceled or terminated under this clause, the commissioner shall
refund the full amount of the permit holder's down payment and release or otherwise apply
to a new permit, as the permit holder elects, the full amount of the permit holder's surety
bond or cash security deposit posted in regard to the eligible timber permit.
new text end

new text begin (c) "Eligible timber permit," as used in this subdivision, means a permit for the
harvesting of timber that was issued for timber sales or processing in the affected
market either prior to the start of or during the decline of the timber market segment.
Notwithstanding any other provision of this subdivision, a permit holder holding multiple
timber harvesting permits is not entitled to relief under this subdivision from permit
purchase obligations totaling more than 35,000 cords in volume. The commissioner
must proceed expeditiously to reoffer for sale timber that was subject to eligible timber
permits that were canceled or terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end