HF 823

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources; modifying the State
Timber Act; modifying standard measurements for wood;
amending Minnesota Statutes 2004, sections 90.01, by
adding subdivisions; 90.041, subdivision 5; 90.042;
90.101, subdivision 2; 90.121; 90.172; 90.173; 90.195;
90.211; 90.301, subdivision 4; 239.33; repealing
Minnesota Statutes 2004, sections 90.01, subdivision
9; 90.041, subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2004, section 90.01, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Effective permit. new text end

new text begin "Effective permit" means a
permit for which the commissioner has on file full or partial
surety as required by section 90.161, 90.162, 90.163, or 90.173
or, in the case of permits issued according to section 90.191 or
90.195, the commissioner has received a down payment equal to
the full appraised value.
new text end

Sec. 2.

Minnesota Statutes 2004, section 90.01, is amended
by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Responsible bidder. new text end

new text begin "Responsible bidder" means
a person who is financially responsible; demonstrates the
judgment, skill, ability, capacity, and integrity requisite and
necessary to perform according to the terms of a permit issued
under this chapter; and is not currently debarred by another
government entity for any cause.
new text end

Sec. 3.

Minnesota Statutes 2004, section 90.041,
subdivision 5, is amended to read:

Subd. 5.

Forest improvement contracts.

The commissioner
may contract as part of the timber sale with the purchaser of
state timber at either informal or auction sale for the
following forest improvement work to be done on the land
included within the sale area: preparation of the site for
seeding or planting of seedlings or trees, seeding or planting
of seedlings or trees, and other activities relating to forest
regeneration. new text begin A contract issued under this subdivision is not
subject to the competitive bidding provisions of chapter 16C and
is exempt from the contract approval provisions of section
16C.05, subdivision 2.
new text end

Sec. 4.

Minnesota Statutes 2004, section 90.042, is
amended to read:

90.042 PUBLIC INVOLVEMENT PROCESS.

new text begin Subdivision 1. new text end

new text begin Report to legislature. new text end

By July 1 each
year, the commissioner must provide a complete description of
the public involvement process for timber harvest plans to the
chairs of the legislative committees with jurisdiction over
natural resources policy and finance. The process must provide
public notice and public input in affected areas of proposed
annual harvest plans.

new text begin Subd. 2. new text end

new text begin Public meetings. new text end

new text begin By May 1 each year, the
commissioner shall hold one or more public meetings in the
forested area of the state to inform the public of the manner in
which the proposed annual harvest plan for the next fiscal year
is proposed to be allocated between informal, intermediate, and
regular auction sales. The public shall be afforded an
opportunity to provide written and oral comments concerning the
proposed allocation.
new text end

Sec. 5.

Minnesota Statutes 2004, section 90.101,
subdivision 2, is amended to read:

Subd. 2.

Sale list and notice.

At least 30 days before
the date of sale, the commissioner shall compile a list
containing a description of each tract of land upon which any
timber to be offered is situated and a statement of the
estimated quantity of timber and of the appraised price of each
kind of timber thereon as shown by the report of the state
appraiser. deleted text begin The commissioner may also list the estimated
quantity of timber of doubtful market value and the appraised
price of each kind of such timber within the permit area that
may be cut at the discretion of the purchaser. Optional timber
will not be considered a part of the sale contract until the
permit holder has advised the commissioner in writing of an
intent to cut such timber. deleted text end No description shall be added after
the list is posted and no timber shall be sold from land not
described in the list. Copies of the list shall be furnished to
all interested applicants. A copy of the list shall be
conspicuously posted in the forest office or other public
facility most accessible to potential bidders at least 30 days
prior to the date of sale. The commissioner shall cause a
notice to be published once not less than one week before the
date of sale in a legal newspaper in the county or counties
where the land is situated. The notice shall state the time and
place of the sale and the location at which further information
regarding the sale may be obtained. The commissioner may give
other published or posted notice as the commissioner deems
proper to reach prospective bidders.

Sec. 6.

Minnesota Statutes 2004, section 90.121, is
amended to read:

90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.

(a) The commissioner may sell the timber on any tract of
state land in lots not exceeding 3,000 cords in volume, in the
same manner as timber sold at public auction under section
90.101, and related laws, subject to the following special
exceptions and limitations:

(1) the commissioner shall offer all tracts authorized for
sale by this section separately from the sale of tracts of state
timber made pursuant to section 90.101;

(2) no bidder may be awarded more than 25 percent of the
total tracts offered at the first round of bidding unless fewer
than four tracts are offered, in which case not more than one
tract shall be awarded to one bidder. Any tract not sold at
public auction may be offered for private sale as authorized by
section 90.101, subdivision 1, to persons eligible under this
section at the appraised value; and

(3) no sale may be made to a person having more than 20
employees. new text begin For the purposes of this subdivision, "employee"
means a natural person working for salary or wages on a
full-time or part-time basis.
new text end

(b) The auction sale procedure set forth in this section
constitutes an additional alternative timber sale procedure
available to the commissioner and is not intended to replace
other authority possessed by the commissioner to sell timber in
lots of 3,000 cords or less.

Sec. 7.

Minnesota Statutes 2004, section 90.172, is
amended to read:

90.172 ANNUAL deleted text begin REPORT deleted text end new text begin REPORTS new text end .

new text begin Subdivision 1. new text end

new text begin Report to legislature. new text end

The commissioner
shall file an annual report on or before September 30 of each
year with the Legislative Reference Library providing detailed
information on all auctions and informal sales made in the
previous fiscal year. The report shall include but not be
limited to the names and addresses of all purchasers, volumes of
timber purchased, species, appraised value and sale price. The
commissioner shall make copies of the report available to the
public upon request.

new text begin Subd. 2. new text end

new text begin Report to executive council. new text end

new text begin The commissioner
shall report on or before September 30 of each year or more
frequently, as required, to the state Executive Council
concerning the status of the state timber sales and timber
management program, including any special problems or changes
occurring since the previous report.
new text end

Sec. 8.

Minnesota Statutes 2004, section 90.173, is
amended to read:

90.173 PURCHASER'S OR ASSIGNEE'S CASH DEPOSIT IN LIEU OF
BOND.

(a) In lieu of filing the bond required by section 90.161
or 90.171, as security for the issuance or assignment of a
timber permit new text begin , new text end the person required to file the bond may deposit
with the commissioner deleted text begin of finance deleted text end cash deleted text begin , deleted text end new text begin ; new text end a certified check deleted text begin , deleted text end new text begin ; new text end a
cashier's check deleted text begin , deleted text end new text begin ; new text end a personal check deleted text begin , deleted text end new text begin ; new text end a postal, bank, or express
money order deleted text begin , assignable bonds or notes of the United States, or
an assignment of a bank savings account or investment
certificate deleted text end new text begin ; new text end or an irrevocable bank letter of credit deleted text begin , deleted text end in the
same amount as would be required for a bond. deleted text begin If securities
listed in this section are deposited, the par value of the
securities shall be not less than the amount required for the
timber sale bond, and the person required to file the timber
sale bond shall submit an agreement authorizing the commissioner
to sell or otherwise take possession of the security in the
event of default under the timber sale. deleted text end All of the conditions
of the timber sale bond shall equally apply to deleted text begin the deposit with
the commissioner of finance deleted text end new text begin the alternatives in lieu of bond new text end .
In the event of a default the state may take from the deposit
the sum of money to which it is entitled; the remainder, if any,
shall be returned to the person making the deposit. When cash
is deposited for a bond, it shall be applied to the amount due
when a statement is prepared and transmitted to the permit
holder pursuant to section 90.181. Any balance due to the state
shall be shown on the statement and shall be paid as provided in
section 90.181. Any amount of the deposit in excess of the
amount determined to be due pursuant to section 90.181 shall be
returned to the permit holder when a final statement is
transmitted pursuant to that section. All or part of a cash
bond may be withheld from application to an amount due on a
nonfinal statement if it appears that the total amount due on
the permit will exceed the bid price.

(b) If an irrevocable bank letter of credit is provided as
security under paragraph (a), at the written request of the
permittee the state shall annually allow the amount of the bank
letter of credit to be reduced by an amount proportionate to the
value of timber that has been harvested and for which the state
has received payment under the timber permit. The remaining
amount of the bank letter of credit after a reduction under this
paragraph must not be less than the value of the timber
remaining to be harvested under the timber permit.

(c) If cash; a certified check; a cashier's check; a
personal check; or a postal, bank, or express money order is
provided as security under paragraph (a) and no cutting of state
timber has taken place on the permit, the commissioner may
credit the security provided, less any deposit required by
sections 90.14 and 90.163, to any other permit to which the
permit holder requests in writing that it be credited.

Sec. 9.

Minnesota Statutes 2004, section 90.195, is
amended to read:

90.195 SPECIAL USE PERMIT.

The commissioner may issue a permit to salvage or cut not
to exceed 12 cords of fuelwood per year for personal use from
either or both of the following sources: (1) dead, down, and
diseased trees; (2) other trees that are of negative value under
good forest management practices. The permits may be issued for
a period not to exceed one year. The commissioner shall charge
a fee, not less than deleted text begin $5 deleted text end new text begin $25 new text end , in an amount up to the stumpage
current market value of fuelwood of similar species, grade, and
volume that is being sold in the area where the salvage or
cutting is authorized under the permit.

Sec. 10.

Minnesota Statutes 2004, section 90.211, is
amended to read:

90.211 PURCHASE MONEY, WHEN FORFEITED.

If the deleted text begin purchaser of any timber or the purchaser's
assignee deleted text end new text begin holder of an effective permit new text end fails to cut any part
thereof before the expiration of the permit, the deleted text begin purchaser or
assignee deleted text end new text begin permit holder new text end shall nevertheless pay the price
therefor; but under no circumstances shall timber be cut after
the expiration of the permit or extension thereof.

Sec. 11.

Minnesota Statutes 2004, section 90.301,
subdivision 4, is amended to read:

Subd. 4.

Apprehension of trespassers; reward.

The
deleted text begin following rewards shall deleted text end new text begin commissioner may offer a reward to new text end be
paid to deleted text begin any deleted text end new text begin a new text end person giving to the proper authorities any
information deleted text begin which shall lead deleted text end new text begin that leads new text end to the deleted text begin detection and
deleted text end conviction of deleted text begin any persons deleted text end new text begin a person new text end violating deleted text begin any of the
provisions of deleted text end this chapter deleted text begin : $25 reward, if the value of the
timber so unlawfully cut or removed shall not exceed the sum of
$25; $50 reward, if the value of the timber shall not exceed
$50; and $100 reward, if the value of the timber shall exceed
the sum of $100; and the court before whom the person so
violating the provisions of this chapter shall have been tried,
shall, upon application of any person claiming to be entitled to
such reward, examine the claim in a summary manner and determine
whether or not the person claiming the reward is entitled to the
same and, if it should appear to the satisfaction of the court
that the person claiming the reward is entitled to the same, a
certificate of such facts shall be made by the court and
delivered to the person, which shall be deemed evidence of a
right to the reward deleted text end . new text begin The reward is limited to the greater of
$100 or ten percent of the single stumpage value of any timber
unlawfully cut or removed. new text end The deleted text begin Executive Council deleted text end new text begin commissioner
new text end shall pay the same from any funds appropriated for deleted text begin its expenses
deleted text end new text begin such purposes or from receipts from the sale of state timber. A
reward shall not be paid to salaried forest officers,
conservation officers, or licensed peace officers new text end .

Sec. 12.

Minnesota Statutes 2004, section 239.33, is
amended to read:

239.33 STANDARD MEASUREMENTS OF WOOD.

In all contracts for sale of wood the term "cord" shall
mean 128 cubic feet of wood, new text begin bark, and air, if cut new text end in four-foot
lengths; and if the sale is of "sawed wood," a cord shall mean
110 cubic feet when ranked, or 160 cubic feet when thrown
irregularly or loosely into a conveyance for delivery to the
purchaser; and if the sale is of "sawed and split wood," a cord
shall mean 120 cubic feet, when ranked, and 175 cubic feet when
thrown irregularly and loosely into a conveyance for delivery.
If a measurement is made by weight, the term "cord" or any other
term used to describe freshly cut deleted text begin green aspen in 100-inch or
pole lengths containing 133-1/3 cubic feet of loosely or
irregularly piled wood for transportation constitutes 4,300
pounds during the period of May 1 through October 31 and 4,500
pounds during the period of November 1 through April 30.
Specified weights are deleted text end new text begin wood shall be new text end based on deleted text begin 74 deleted text end new text begin 79 new text end cubic feet of
solid wood content per cord. new text begin The weight per cord may vary by
species or species group. In case of any dispute when the
parties have not otherwise agreed in writing to the weight per
cord by species or species group, the weight most recently
established by the commissioner of natural resources prevails.
new text end

In all contracts for sale of wood, the term "board foot"
means 144 cubic inches of wood measured in any combination of
length, thickness, and width. If a measurement or scale is made
of logs, Scribner's decimal C rule is the standard rule for
determining board feet log scale. When measuring or scaling
logs, each log must be scaled individually by the largest number
of even feet in its length above eight and under 24 feet. All
logs of 24 feet or more in length must be scaled as two or more
logs. This section does not apply to finished lumber measured
in nominal dimensions.

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 90.01, subdivision 9; and
90.041, subdivisions 3 and 4, are repealed.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective July 1, 2005.
new text end