HF 3201

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 11:42am

A bill for an act
relating to state lands; modifying provisions for sales and exchanges of state land;
amending Minnesota Statutes 2014, sections 92.115, by adding a subdivision;
94.3495, subdivisions 2, 3, 7; Minnesota Statutes 2015 Supplement, section
94.10, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 92.115, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Closing costs. new text end

new text begin The purchaser of state land must pay recording fees and
the state deed tax.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 94.10, subdivision 2, is amended
to read:

Subd. 2.

Public sale requirements.

(a) After complying with subdivision 1 and
before any public sale of surplus state-owned land is made and at least 30 days before
the sale, the commissioner of natural resources shall publish a notice of the sale in a
newspaper of general distribution in the county in which the real property to be sold is
situated. The notice shall specify the time and place at which the sale will commence, a
general description of the lots or tracts to be offered, and a general statement of the terms
of sale. The commissioner shall also provide electronic notice of sale.

(b) The minimum bid for a parcel of land must include the estimated value or
appraised value of the land and any improvements and, if any of the land is valuable for
merchantable timber, the value of the merchantable timber. The minimum bid may include
expenses incurred by the commissioner in rendering the property salable, including
survey, appraisal, legal, advertising, and other expenses.

new text begin (c) The purchaser of state land must pay recording fees and the state deed tax.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Except as provided under paragraph (d), parcels remaining unsold after
the offering may be sold to anyone agreeing to pay at least 75 percent of the appraised
value. The sale shall continue until all parcels are sold or until the commissioner orders a
reappraisal or withdraws the remaining parcels from sale.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner may retain the services of a licensed real estate broker
to find a buyer for parcels remaining unsold after the offering. The sale price may be
negotiated by the broker, but must not be less than 90 percent of the appraised value as
determined by the commissioner. The broker's fee must be established by prior agreement
between the commissioner and the broker and must not exceed ten percent of the sale
price for sales of $10,000 or more. The broker's fee must be paid to the broker from
the proceeds of the sale.

Sec. 3.

Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:

Subd. 2.

Classes of land; definitions.

new text begin (a) new text end The classes of public land that may be
involved in an expedited exchange under this section are:

(1) Class 1 land, which for the purpose of this section is Class A land as defined in
section 94.342, subdivision 1 deleted text begin , except for: deleted text end new text begin ;
new text end

deleted text begin (i) school trust land as defined in section 92.025; and
deleted text end

deleted text begin (ii) university land granted to the state by acts of Congress;
deleted text end

(2) Class 2 land, which for the purpose of this section is Class B land as defined in
section 94.342, subdivision 2; and

(3) Class 3 land, which for the purpose of this section is all land owned in fee by
a governmental subdivision of the state.

new text begin (b) "School trust land" has the meaning given under section 92.025.
new text end

new text begin (c) "University land" means land granted to the state by acts of Congress for
university purposes.
new text end

Sec. 4.

Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:

Subd. 3.

Valuation of land.

(a) In an exchange of Class 1 land for Class 2 or 3 land,
the value of all the land shall be determined by the commissioner of natural resources new text begin ,
but the county board must approve the value determined for the Class 2 land and the
governmental subdivision of the state must approve the value determined for the Class 3
land new text end . In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
determined by the county board of the county in which the land lies new text begin , but the governmental
subdivision of the state must approve the value determined for the Class 3 land new text end .

new text begin (b) new text end To determine the value of the land, the parties to the exchange may new text begin either (1)
new text end cause the land to be appraised, deleted text begin utilize the valuation process provided under section
84.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker deleted text end new text begin or
(2) determine the value for each forty or lot, or a portion thereof, using the most current
township or county assessment schedules for similar land types from the county assessor
of the county in which the lands are located new text end . Merchantable timber value deleted text begin must deleted text end new text begin should new text end be
deleted text begin determined and deleted text end considered in finalizing valuation of the lands.

deleted text begin (b) All deleted text end new text begin (c) Except for school trust lands and university lands, the new text end 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 section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
lands new text begin , other than school trust lands or university lands, new text end are of substantially equal value but
are not of the same value.

new text begin (d) School trust lands and university lands exchanged under this section must be
exchanged only for lands of equal or greater value.
new text end

Sec. 5.

Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Reversionary interest; deleted text end Mineral and water power rights and other
reservations.

deleted text begin (a) All deeds conveying land given in an expedited land exchange under
this section shall include a reverter that provides that title to the land automatically reverts
to the conveying governmental unit if:
deleted text end

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

deleted text begin (2) there is no prior written approval for the transfer from the conveying
governmental unit. The authority for granting approval is the commissioner of natural
resources for former Class 1 land, the county board for former Class 2 land, and the
governing body for former Class 3 land.
deleted text end

deleted text begin (b) deleted text end Class 1 land given in exchange is subject to the reservation provisions of section
94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end