SF 1008

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 08/31/2015 01:50pm

A bill for an act
relating to natural resources; modifying timber sale provisions; amending
Minnesota Statutes 2014, sections 90.14; 90.193.

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

Section 1.

Minnesota Statutes 2014, section 90.14, is amended to read:

90.14 AUCTION SALE PROCEDURE.

(a) All state timber shall be offered and sold by the same unit of measurement as it
was appraised. No tract shall be sold to any person other than the purchaser in whose name
the bid was made. The commissioner may refuse to approve any and all bids received and
cancel a sale of state timber for good and sufficient reasons.

(b) The purchaser at any sale of timber shall, immediately upon the approval of the
bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section
90.101, subdivision 1, pay to the commissioner a down payment of 15 percent of the
appraised value. In case any purchaser fails to make such payment, the purchaser shall be
liable therefor to the state in a civil action, and the commissioner may reoffer the timber for
sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.

(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state
timber may, at the time of payment by the purchaser to the commissioner of 15 percent
of the appraised value, elect in writing on a form prescribed by the attorney general to
purchase a permit based solely on the appraiser's estimate of the volume of timber described
in the permit, provided that the commissioner has expressly designated the availability of
such option for that tract on the list of tracts available for sale as required under section
90.101. A purchaser who elects in writing on a form prescribed by the attorney general
to purchase a permit based solely on the appraiser's estimate of the volume of timber
described on the permit does not have recourse to the provisions of section 90.281.

(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall
be awarded to the high bidder, who shall pay to the commissioner a down payment of 15
percent of the appraised value that must be received or postmarked within 14 days of
the date of the sealed bid opening. If a purchaser fails to make the down payment, the
purchaser is liable for the down payment to the state and the commissioner may offer the
timber for sale to the next highest bidder as though no higher bid had been made.

(e) Except as otherwise provided by law, at the time the purchaser signs a permit
issued under section 90.151, the commissioner shall require the purchaser to make a bid
guarantee payment to the commissioner in an amount equal to 15 percent of the total
purchase price of the permit less the down payment amount required by paragraph (b)
for any bid increase in excess of deleted text begin $5,000 deleted text end new text begin $10,000 new text end of the appraised value. If a required bid
guarantee payment is not submitted with the signed permit, no harvesting may occur, the
permit cancels, and the down payment for timber forfeits to the state. The bid guarantee
payment forfeits to the state if the purchaser and successors in interest fail to execute
an effective permit.

Sec. 2.

Minnesota Statutes 2014, section 90.193, is amended to read:

90.193 EXTENSION OF TIMBER PERMITS.

The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
one regular extension for one year. A written request for the regular extension must be
received by the commissioner before the permit expires. The request must state the reason
the extension is necessary and be signed by the permit holder. An interest rate of deleted text begin eight
deleted text end new text begin five new text end percent may be charged for the period of extension.