Minnesota Legislature
HF 3280
2nd Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:39pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to state lands; providing for expedited exchanges of public land;
1.3proposing coding for new law in Minnesota Statutes, chapter 94.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE
1.6STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.
1.7 Subdivision 1. Purpose and scope. (a) The purpose of this section is to expedite the
1.8exchange of public land ownership. Consolidation of public land reduces management
1.9costs and aids in the reduction of forest fragmentation.
1.10(b) This section applies to exchanges of land between the state and a governmental
1.11subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347
1.12apply only to the extent specified in this section.
1.13 Subd. 2. Classes of land; definitions. The classes of public land that may be
1.14involved in an expedited exchange under this section are:
1.15(1) Class 1 land, which for the purpose of this section is Class A land as defined in
1.16section 94.342, subdivision 1, except for:
1.17(i) school trust land as defined in section 92.025; and
1.18(ii) university land granted to the state by acts of Congress;
1.19(2) Class 2 land, which for the purpose of this section is Class B land as defined in
1.20section 94.342, subdivision 2; and
1.21(3) Class 3 land, which for the purpose of this section is all land owned in fee by
1.22a governmental subdivision of the state.
1.23 Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land,
1.24the value of all the land shall be determined by the commissioner of natural resources. In
2.1an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined
2.2by the county board of the county in which the land lies. To determine the value of the
2.3land, the parties to the exchange may cause the land to be appraised, utilize the valuation
2.4process provided under section 84.0272, subdivision 3, or obtain a market analysis from a
2.5qualified real estate broker. Merchantable timber value must be determined and considered
2.6in finalizing valuation of the lands.
2.7(b) All lands exchanged under this section shall be exchanged only for lands of
2.8at least substantially equal value. For the purposes of this subdivision, "substantially
2.9equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b).
2.10No payment is due either party if the lands are of substantially equal value but are not
2.11of the same value.
2.12 Subd. 4. Title. Title to the land must be examined to the extent necessary for the
2.13parties to determine that the title is good, with any encumbrances identified. The parties to
2.14the exchange may utilize title insurance to aid in the determination.
2.15 Subd. 5. Approval by Land Exchange Board. All expedited land exchanges
2.16under this section, and the terms and conditions of the exchanges, require the unanimous
2.17approval of the Land Exchange Board.
2.18 Subd. 6. Conveyance. (a) Conveyance of Class 1 land given in exchange shall be
2.19made by deed executed by the commissioner of natural resources in the name of the
2.20state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the
2.21commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by
2.22a deed executed by the governing body in the name of the governing authority.
2.23(b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class
2.242 or 3 land shall first be delivered to the commissioner of natural resources. Following
2.25the recording of the deed, the commissioner of natural resources shall deliver the deed
2.26conveying the Class 1 land.
2.27(c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land
2.28shall first be delivered to the county auditor. Following the recording of the deed, the
2.29commissioner of revenue shall deliver the deed conveying the Class 2 land.
2.30(d) All deeds shall be recorded or registered in the county in which the lands lie.
2.31 Subd. 7. Reversionary interest; mineral and water power rights and other
2.32reservations. (a) All deeds conveying land given in an expedited land exchange under
2.33this section shall include a reverter that provides that title to the land automatically reverts
2.34to the conveying governmental unit if:
2.35(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
2.36the land within 40 years of the date of the deed conveying ownership; and
3.1(2) there is no prior written approval for such transfer from the conveying
3.2governmental unit. The authority for granting approval is the commissioner of natural
3.3resources for former Class 1 land, the county board for former Class 2 land, and the
3.4governing body for former Class 3 land.
3.5(b) Class 1 land given in exchange is subject to the reservation provisions of section
3.694.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
3.7provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
3.8to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
3.9 Subd. 8. Land status. Land received in exchange for Class 1 land is subject to the
3.10same trust, if any, and otherwise has the same status as the land given in exchange. Land
3.11received in exchange for Class 2 land is subject to a trust in favor of the governmental
3.12subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in
3.13exchange for Class 3 land has the same status as the land given in exchange.
1.3proposing coding for new law in Minnesota Statutes, chapter 94.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE
1.6STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.
1.7 Subdivision 1. Purpose and scope. (a) The purpose of this section is to expedite the
1.8exchange of public land ownership. Consolidation of public land reduces management
1.9costs and aids in the reduction of forest fragmentation.
1.10(b) This section applies to exchanges of land between the state and a governmental
1.11subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347
1.12apply only to the extent specified in this section.
1.13 Subd. 2. Classes of land; definitions. The classes of public land that may be
1.14involved in an expedited exchange under this section are:
1.15(1) Class 1 land, which for the purpose of this section is Class A land as defined in
1.16section 94.342, subdivision 1, except for:
1.17(i) school trust land as defined in section 92.025; and
1.18(ii) university land granted to the state by acts of Congress;
1.19(2) Class 2 land, which for the purpose of this section is Class B land as defined in
1.20section 94.342, subdivision 2; and
1.21(3) Class 3 land, which for the purpose of this section is all land owned in fee by
1.22a governmental subdivision of the state.
1.23 Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land,
1.24the value of all the land shall be determined by the commissioner of natural resources. In
2.1an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined
2.2by the county board of the county in which the land lies. To determine the value of the
2.3land, the parties to the exchange may cause the land to be appraised, utilize the valuation
2.4process provided under section 84.0272, subdivision 3, or obtain a market analysis from a
2.5qualified real estate broker. Merchantable timber value must be determined and considered
2.6in finalizing valuation of the lands.
2.7(b) All lands exchanged under this section shall be exchanged only for lands of
2.8at least substantially equal value. For the purposes of this subdivision, "substantially
2.9equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b).
2.10No payment is due either party if the lands are of substantially equal value but are not
2.11of the same value.
2.12 Subd. 4. Title. Title to the land must be examined to the extent necessary for the
2.13parties to determine that the title is good, with any encumbrances identified. The parties to
2.14the exchange may utilize title insurance to aid in the determination.
2.15 Subd. 5. Approval by Land Exchange Board. All expedited land exchanges
2.16under this section, and the terms and conditions of the exchanges, require the unanimous
2.17approval of the Land Exchange Board.
2.18 Subd. 6. Conveyance. (a) Conveyance of Class 1 land given in exchange shall be
2.19made by deed executed by the commissioner of natural resources in the name of the
2.20state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the
2.21commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by
2.22a deed executed by the governing body in the name of the governing authority.
2.23(b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class
2.242 or 3 land shall first be delivered to the commissioner of natural resources. Following
2.25the recording of the deed, the commissioner of natural resources shall deliver the deed
2.26conveying the Class 1 land.
2.27(c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land
2.28shall first be delivered to the county auditor. Following the recording of the deed, the
2.29commissioner of revenue shall deliver the deed conveying the Class 2 land.
2.30(d) All deeds shall be recorded or registered in the county in which the lands lie.
2.31 Subd. 7. Reversionary interest; mineral and water power rights and other
2.32reservations. (a) All deeds conveying land given in an expedited land exchange under
2.33this section shall include a reverter that provides that title to the land automatically reverts
2.34to the conveying governmental unit if:
2.35(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
2.36the land within 40 years of the date of the deed conveying ownership; and
3.1(2) there is no prior written approval for such transfer from the conveying
3.2governmental unit. The authority for granting approval is the commissioner of natural
3.3resources for former Class 1 land, the county board for former Class 2 land, and the
3.4governing body for former Class 3 land.
3.5(b) Class 1 land given in exchange is subject to the reservation provisions of section
3.694.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
3.7provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
3.8to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
3.9 Subd. 8. Land status. Land received in exchange for Class 1 land is subject to the
3.10same trust, if any, and otherwise has the same status as the land given in exchange. Land
3.11received in exchange for Class 2 land is subject to a trust in favor of the governmental
3.12subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in
3.13exchange for Class 3 land has the same status as the land given in exchange.