SF 1126

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

1.1A bill for an act

1.2relating to real property; modifying procedures relating to uses and conveyances
1.3of tax-forfeited property;amending Minnesota Statutes 2008, section 282.01,
1.4subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions; repealing
1.5Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, 11; 383A.76.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:
1.8    Subdivision 1. Classification as conservation or nonconservation. It is the
1.9general policy of this state to encourage the best use of tax-forfeited lands, recognizing
1.10(a) When acting on behalf of the state under laws allowing the county board to classify
1.11and manage tax-forfeited lands held by the state in trust for the local units as provided in
1.12section 281.25, the county board has the discretion to decide that some lands in public
1.13ownership should be retained and managed for public benefits while other lands should be
1.14returned to private ownership. Parcels of land becoming the property of the state in trust
1.15under law declaring the forfeiture of lands to the state for taxes must be classified by the
1.16county board of the county in which the parcels lie as conservation or nonconservation. In
1.17making the classification the board shall consider the present use of adjacent lands, the
1.18productivity of the soil, the character of forest or other growth, accessibility of lands
1.19to established roads, schools, and other public services, their peculiar suitability or
1.20desirability for particular uses, and the suitability of the forest resources on the land for
1.21multiple use, and sustained yield management. The classification, furthermore, must: (1)
1.22encourage and foster a mode of land utilization that will facilitate the economical and
1.23adequate provision of transportation, roads, water supply, drainage, sanitation, education,
1.24and recreation; (2) facilitate reduction of governmental expenditures; (3) conserve and
2.1develop the natural resources; and (4) foster and develop agriculture and other industries
2.2in the districts and places best suited to them.
2.3In making the classification the county board may use information made available
2.4by any office or department of the federal, state, or local governments, or by any other
2.5person or agency possessing pertinent information at the time the classification is made.
2.6The lands may be reclassified from time to time as the county board considers necessary
2.7or desirable, except for conservation lands held by the state free from any trust in favor of
2.8any taxing district.
2.9If the lands are located within the boundaries of an organized town, with taxable
2.10valuation in excess of $20,000, or incorporated municipality, the classification or
2.11reclassification and sale must first be approved by the town board of the town or the
2.12governing body of the municipality in which the lands are located. The town board of
2.13the town or the governing body of the municipality is considered to have approved
2.14the classification or reclassification and sale if the county board is not notified of the
2.15disapproval of the classification or reclassification and sale within 60 days of the date the
2.16request for approval was transmitted to the town board of the town or governing body
2.17of the municipality. If the town board or governing body desires to acquire any parcel
2.18lying in the town or municipality by procedures authorized in this section, it must file a
2.19written application with the county board to withhold the parcel from public sale. The
2.20application must be filed within 60 days of the request for classification or reclassification
2.21and sale. The county board shall then withhold the parcel from public sale for six months.
2.22A municipality or governmental subdivision shall pay maintenance costs incurred by
2.23the county during the six-month period while the property is withheld from public sale,
2.24provided the property is not offered for public sale after the six-month period. A clerical
2.25error made by county officials does not serve to eliminate the request of the town board
2.26or governing body if the board or governing body has forwarded the application to the
2.27county auditor. If the town board or governing body of the municipality fails to submit an
2.28application and a resolution of the board or governing body to acquire the property within
2.29the withholding period, the county may offer the property for sale upon the expiration of
2.30the withholding period.
2.31(b) Whenever the county board deems it appropriate, the board may hold a meeting
2.32for the purpose of reclassifying tax-forfeited land that has not been sold or released from
2.33the trust. The criteria and procedures for reclassification are the same as those required for
2.34an initial classification.
2.35(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands,
2.36the county board must give notice of its intent to meet for that purpose as provided in this
3.1paragraph. The notice must be given no more than 90 days and no less than 60 days before
3.2the date of the meeting; provided that if the meeting is rescheduled, notice of the new
3.3date, time, and location must be given at least 14 days before the date of the rescheduled
3.4meeting. The notice must be posted on a Web site. The notice must also be mailed or
3.5otherwise delivered to each person who has filed a request for notice of special meetings
3.6with the public body, regardless of whether the matter is considered at a regular or special
3.7meeting. The notice must be mailed or delivered at least 60 days before the date of the
3.8meeting. If the meeting is rescheduled, notice of the new date, time, and location must be
3.9mailed or delivered at least 14 days before the date of the rescheduled meeting. The public
3.10body shall publish the notice once, at least 30 days before the meeting, in a newspaper of
3.11general circulation within the area of the public body's authority. The board must also mail
3.12a notice by electronic means to each person who requests notice of meetings dealing with
3.13this subject and who agrees as provided in chapter 325L to accept notice that is mailed
3.14by electronic means. Receipt of actual notice under the conditions specified in section
3.1513D.04, subdivision 7, satisfies the notice requirements of this paragraph.
3.16The board may classify or reclassify tax-forfeited lands at any regular or special
3.17meeting, as those terms are defined in chapter 13D and may conduct only this business, or
3.18this business as well as other business or activities at the meeting.
3.19(d) At the meeting, the county board must allow any person or agency possessing
3.20pertinent information to make or submit comments and recommendations about the
3.21pending classification or reclassification. In addition, representatives of governmental
3.22entities in attendance must be allowed to describe plans, ideas, or projects that may
3.23involve use or acquisition of the property by that or another governmental entity. The
3.24county board must solicit and consider any relevant components of current municipal or
3.25metropolitan comprehensive land use plans that incorporate the area in which the land
3.26is located. After allowing testimony, the board may classify, reclassify, or delay taking
3.27action on any parcel or parcels. In order for a state agency or a governmental subdivision
3.28of the state to preserve its right to request a purchase or other acquisition of a forfeited
3.29parcel, it may, at any time following forfeiture, file a written request to withhold the parcel
3.30from sale or lease to others under the provisions of subdivision 1a.
3.31(e) When classifying, reclassifying, appraising, and selling lands under this chapter,
3.32the county board may designate the tracts as assessed and acquired, or may by resolution
3.33provide for the subdivision of the tracts into smaller units or for the grouping of several
3.34tracts into one tract when the subdivision or grouping is deemed advantageous for
3.35conservation or sale purposes. This paragraph does not authorize the county board to
4.1subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
4.2from sale under section 282.018, subdivision 1.
4.3(f) A county board may by resolution elect to use the classification and
4.4reclassification procedures provided in paragraphs (g), (h), and (i), instead of the
4.5procedures provided in paragraphs (b), (c), and (d). Once an election is made under this
4.6paragraph, it is effective for a minimum of five years.
4.7(g) The classification or reclassification of tax-forfeited land that has not been sold or
4.8released from the trust may be made by the county board using information made available
4.9to it by any office or department of the federal, state, or local governments, or by any other
4.10person or agency possessing pertinent information at the time the classification is made.
4.11(h) If the lands are located within the boundaries of an organized town or
4.12incorporated municipality, a classification or reclassification and sale must first be
4.13approved by the town board of the town or the governing body of the municipality in
4.14which the lands are located. The town board of the town or the governing body of the
4.15municipality is considered to have approved the classification or reclassification and sale
4.16if the county board is not notified of the disapproval of the classification or reclassification
4.17and sale within 60 days of the date the request for approval was transmitted to the town
4.18board of the town or governing body of the municipality. If the town board or governing
4.19body disapproves of the classification or reclassification and sale, the county board must
4.20follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must
4.21additionally cause to be published in a newspaper a notice of the date, time, location, and
4.22purpose of the required meeting.
4.23(i) If a town board or a governing body of a municipality or a park and recreation
4.24board in a city of the first class desires to acquire any parcel lying in the town or
4.25municipality by procedures authorized in this section, it may file a written request under
4.26subdivision 1a, paragraph (a).
4.27EFFECTIVE DATE.This section is effective July 1, 2010.

4.28    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:
4.29    Subd. 1a. Conveyance; generally to public entities. (a) Upon written request
4.30from a state agency or a governmental subdivision of the state, a parcel of unsold
4.31tax-forfeited land must be withheld from sale or lease to others for a maximum of six
4.32months. The request must be submitted to the county auditor. Upon receipt, the county
4.33auditor must withhold the parcel from sale or lease to any other party for six months, and
4.34must confirm the starting date of the six-month withholding period to the requesting
4.35agency or subdivision. If the request is from a governmental subdivision of the state, the
5.1governmental subdivision must pay the maintenance costs incurred by the county during
5.2the period the parcel is withheld. The county board may approve a sale or conveyance to
5.3the requesting party during the withholding period. A conveyance of the property to the
5.4requesting party terminates the withholding period.
5.5A governmental subdivision of the state must not make, and a county auditor must
5.6not act upon, a second request to withhold a parcel from sale or lease within 18 months
5.7of a previous request for that parcel. A county may reject a request made under this
5.8paragraph if the request is made more than 30 days after the county has given notice to the
5.9requesting state agency or governmental subdivision of the state that the county intends to
5.10sell or otherwise dispose of the property.
5.11(b) Nonconservation tax-forfeited lands may be sold by the county board, for
5.12their market value as determined by the county board, to an organized or incorporated
5.13governmental subdivision of the state for any public purpose for which the subdivision is
5.14authorized to acquire property or. When the term "market value" is used in this section, it
5.15means an estimate of the full and actual market value of the parcel as determined by the
5.16county board, but in making this determination, the board and the persons employed by or
5.17under contract with the board in order to perform, conduct, or assist in the determination,
5.18are exempt from the licensure requirements of chapter 82B.
5.19(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the
5.20taxing districts on application of to the county board by a state agency for an authorized
5.21use at not less than their market value as determined by the county board.
5.22(d) Nonconservation tax-forfeited lands may be sold by the county board to an
5.23organized or incorporated governmental subdivision of the state or state agency for less
5.24than their market value if:
5.25(1) the county board determines that a sale at a reduced price is in the public interest
5.26because a reduced price is necessary to provide an incentive to correct the blighted
5.27conditions that make the lands undesirable in the open market, or the reduced price will
5.28lead to the development of affordable housing; and
5.29(2) the governmental subdivision or state agency has documented its specific plans
5.30for correcting the blighted conditions or developing affordable housing, and the specific
5.31law or laws that empower it to acquire real property in furtherance of the plans.
5.32If the sale under this paragraph is to a governmental subdivision of the state, the
5.33commissioner of revenue must convey the property on behalf of the state by quit claim
5.34deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
5.35conveyance document that releases the property from the trust in favor of the taxing
5.36districts.
6.1(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
6.2may be conveyed by the commissioner of revenue may convey by deed in the name
6.3of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a
6.4governmental subdivision for an authorized public use, if an application is submitted to
6.5the commissioner which includes a statement of facts as to the use to be made of the tract
6.6and the need therefor and the favorable recommendation of the county board. For the
6.7purposes of this paragraph, "authorized public use" means a use that allows an indefinite
6.8segment of the public to physically use and enjoy the property in numbers appropriate
6.9to its size and use, or is for a public service facility. Authorized public uses as defined
6.10in this paragraph are limited to:
6.11(1) a road, or right-of-way for a road;
6.12(2) a park that is both available to, and accessible by, the public that contains
6.13amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
6.14(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
6.15with a reasonable amount of surrounding land maintained in its natural state;
6.16(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
6.17including transit ways, park-and-ride lots, transit stations, maintenance and garage
6.18facilities, and other facilities related to a public transit system;
6.19(5) public beaches or boat launches;
6.20(6) public parking;
6.21(7) civic recreation or conference facilities; and
6.22(8) public service facilities such as fire halls, police stations, lift stations, water
6.23towers, sanitation facilities, water treatment facilities, and administrative offices.
6.24No monetary compensation or consideration is required for the conveyance, except as
6.25provided in subdivision 1g, but the conveyance is subject to the conditions provided in
6.26law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
6.27(f) The commissioner of revenue shall convey a parcel of nonconservation
6.28tax-forfeited land to a local governmental subdivision of the state by quit claim deed
6.29on behalf of the state upon the favorable recommendation of the county board if the
6.30governmental subdivision has certified to the board that prior to forfeiture the subdivision
6.31was entitled to the parcel under a written development agreement or instrument, but
6.32the conveyance failed to occur prior to forfeiture. No compensation or consideration is
6.33required for, and no conditions attach to, the conveyance.
6.34(g) The commissioner of revenue shall convey a parcel of nonconservation
6.35tax-forfeited land to the association of a common interest community by quit claim deed
6.36upon the favorable recommendation of the county board if the association certifies to the
7.1board that prior to forfeiture the association was entitled to the parcel under a written
7.2agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
7.3consideration is required for, and no conditions attach to, the conveyance.
7.4(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
7.5state for less than its market value for either: (1) creation or preservation of wetlands;
7.6(2) drainage or storage of storm water under a storm water management plan; or (3)
7.7preservation, or restoration and preservation, of the land in its natural state. The deed must
7.8contain a restrictive covenant limiting the use of the land to one of these purposes for
7.930 years or until the property is reconveyed back to the state in trust. At any time, the
7.10governmental subdivision may reconvey the property to the state in trust for the taxing
7.11districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
7.12No part of a purchase price determined under this paragraph shall be refunded upon a
7.13reconveyance, but the amount paid for a conveyance under this paragraph may be taken
7.14into account by the county board when setting the terms of a future sale of the same
7.15property to the same governmental subdivision under paragraph (b) or (d). If the lands
7.16are unplatted and located outside of an incorporated municipality and the commissioner
7.17of natural resources determines there is a mineral use potential, the sale is subject to the
7.18approval of the commissioner of natural resources.
7.19(i) A park and recreation board in a city of the first class is a governmental
7.20subdivision for the purposes of this section.
7.21EFFECTIVE DATE.This section is effective July 1, 2010.

7.22    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:
7.23    Subd. 1b. Conveyance; targeted neighborhood community lands. (a)
7.24Notwithstanding subdivision 1a, in the case of tax-forfeited lands located in a targeted
7.25neighborhood, as defined in section 469.201, subdivision 10 community in a city of the
7.26first class, the commissioner of revenue shall convey by quit claim deed in the name of the
7.27state any tract of tax-forfeited land held in trust in favor of the taxing districts, to a political
7.28subdivision of the state that submits an application to the commissioner of revenue and
7.29the favorable recommendation of the county board. For purposes of this subdivision, the
7.30term "targeted community" has the meaning given in section 469.201, subdivision 10,
7.31except that the land must be located within a first class city.
7.32(b) The application under paragraph (a) must include a statement of facts as to the
7.33use to be made of the tract, the need therefor, and a resolution, adopted by the governing
7.34body of the political subdivision, finding that the conveyance of a tract of tax-forfeited
7.35land to the political subdivision is necessary to provide for the redevelopment of land as
8.1productive taxable property. Deeds of conveyance issued under paragraph (a) are not
8.2conditioned on continued use of the property for the use stated in the application.
8.3EFFECTIVE DATE.This section is effective July 1, 2010.

8.4    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:
8.5    Subd. 1c. Deed of conveyance; form; approvals. The deed of conveyance for
8.6property conveyed for a an authorized public use under the authorities in subdivision
8.71a, paragraph (e), must be on a form approved by the attorney general and must be
8.8conditioned on continued use for the purpose stated in the application as provided in this
8.9section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
8.10of the estate occurs by operation of law and without the requirement for any affirmative
8.11act by or on behalf of the state when there is a failure to put the property to the approved
8.12authorized public use for which it was conveyed, or an abandonment of that use, except as
8.13provided in subdivision 1d.
8.14EFFECTIVE DATE.This section is effective July 1, 2010.

8.15    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:
8.16    Subd. 1d. Reverter for failure to use; conveyance to state. (a) If after three years
8.17from the date of the conveyance a governmental subdivision to which tax-forfeited land
8.18has been conveyed for a specified an authorized public use as provided in this section
8.19subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the
8.20governing body of the subdivision may, must: (1) with the approval of the county board,
8.21purchase the property for an authorized public purpose at the present appraised market
8.22value as determined by the county board. In that case, the commissioner of revenue shall,
8.23upon proper written application approved by the county board, issue an appropriate deed
8.24to the subdivisions free of a use restriction and reverter. The governing body may also, or
8.25(2) authorize the proper officers to convey the land, or the part of the land not required for
8.26an authorized public use, to the state of Minnesota. in trust for the taxing districts. If the
8.27governing body purchases the property under clause (1), the commissioner of revenue
8.28shall, upon proper application submitted by the county auditor, convey the property on
8.29behalf of the state by quit claim deed to the subdivision free of a use restriction and the
8.30possibility of reversion or defeasement. If the governing body decides to reconvey the
8.31property to the state under this clause, the officers shall execute a deed of conveyance
8.32immediately. The conveyance is subject to the approval of the commissioner and its form
8.33must be approved by the attorney general. A sale, lease, transfer, or other conveyance
9.1of tax-forfeited lands by a housing and redevelopment authority, a port authority, an
9.2economic development authority, or a city as authorized by chapter 469 is not an
9.3abandonment of use and the lands shall not be reconveyed to the state nor shall they
9.4revert to the state. A certificate made by a housing and redevelopment authority, a port
9.5authority, an economic development authority, or a city referring to a conveyance by it
9.6and stating that the conveyance has been made as authorized by chapter 469 may be filed
9.7with the county recorder or registrar of titles, and the rights of reverter in favor of the state
9.8provided by subdivision 1e will then terminate. No vote of the people is required for the
9.9conveyance. For the purposes of this paragraph, there is no failure to put the land to the
9.10authorized public use and no abandonment of that use if a formal plan of the governmental
9.11subdivision, including, but not limited to, a comprehensive plan or land use plan that
9.12shows an intended future use of the land for the authorized public use.
9.13(b) Property held by a governmental subdivision of the state under a conditional use
9.14deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue on or
9.15after January 1, 2007, may be acquired by that governmental subdivision after 15 years
9.16from the date of the conveyance if the commissioner determines upon written application
9.17from the subdivision that the subdivision has in fact put the property to the authorized
9.18public use for which it was conveyed, and the subdivision has made a finding that it
9.19has no current plans to change the use of the lands. Prior to conveying the property, the
9.20commissioner shall inquire whether the county board where the land is located objects to a
9.21conveyance of the property to the subdivision without conditions and without further act
9.22by or obligation of the subdivision. If the county does not object within 60 days, and the
9.23commissioner makes a favorable determination, the commissioner shall issue a quit claim
9.24deed on behalf of the state unconditionally conveying the property to the governmental
9.25subdivision. For purposes of this paragraph, demonstration of an intended future use
9.26for the authorized public use in a formal plan of the governmental subdivision does not
9.27constitute use for that authorized public use.
9.28(c) Property held by a governmental subdivision of the state under a conditional
9.29use deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue
9.30before January 1, 2007, is released from the use restriction and possibility of reversion on
9.31January 1, 2022, if the county board records a resolution describing the land and citing
9.32this paragraph. The county board may authorize the county treasurer to deduct the amount
9.33of the recording fees from future settlements of property taxes to the subdivision.
9.34(d) All property conveyed under a conditional use deed executed under subdivision
9.351a, paragraph (e), by the commissioner of revenue is released from the use restriction and
9.36reverter, and any use restriction or reverter for which no declaration of reversion has been
10.1recorded with the county recorder or registrar of titles, as appropriate, is nullified on the
10.2later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or
10.3(3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens
10.4related to the appeal is recorded in the office of the county recorder or registrar of titles,
10.5as appropriate, prior to January 1, 2015.
10.6EFFECTIVE DATE.This section is effective July 1, 2010.

10.7    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
10.8to read:
10.9    Subd. 1g. Conditional use deed fees. (a) A governmental subdivision of the state
10.10applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee
10.11of $250 to the commissioner of revenue along with the application. If the application is
10.12denied, the commissioner shall refund $150 of the application fee.
10.13(b) The proceeds from the fees must be deposited in a Department of Revenue
10.14conditional use deed revolving fund. The sums deposited into the revolving fund are
10.15appropriated to the commissioner of revenue for the purpose of making the refunds
10.16described in this subdivision, and administering conditional use deed laws.
10.17EFFECTIVE DATE.This section is effective for applications received by the
10.18commissioner after June 30, 2010.

10.19    Sec. 7. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
10.20to read:
10.21    Subd. 1h. Conveyance; form. The instruments of conveyance executed and issued
10.22by the commissioner of revenue under subdivision 1a, paragraphs (c), (d), (e), (f), (g),
10.23and (h), and subdivision 1d, paragraph (b), must be on a form approved by the attorney
10.24general and are prima facie evidence of the facts stated therein and that the execution and
10.25issuance of the conveyance complies with the applicable laws.
10.26EFFECTIVE DATE.This section is effective for deeds executed by the
10.27commissioner of revenue after June 30, 2010.

10.28    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:
10.29    Subd. 2. Conservation lands; county board supervision. (a) Lands classified as
10.30conservation lands, unless reclassified as nonconservation lands, sold to a governmental
10.31subdivision of the state, designated as lands primarily suitable for forest production and
10.32sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
11.1herein provided, will must be held under the supervision of the county board of the county
11.2within which such the parcels lie. and must not be conveyed or sold unless the lands are:
11.3The county board may, by resolution duly adopted, declare lands classified as
11.4conservation lands as primarily suitable for timber production and as lands which should
11.5be placed in private ownership for such purposes. If such action be approved by the
11.6commissioner of natural resources, the lands so designated, or any part thereof, may be
11.7sold by the county board in the same manner as provided for the sale of lands classified as
11.8nonconservation lands. Such county action and the approval of the commissioner shall be
11.9limited to lands lying within areas zoned for restricted uses under the provisions of Laws
11.101939, chapter 340, or any amendments thereof.
11.11(1) reclassified as nonconservation lands;
11.12(2) conveyed to a governmental subdivision of the state under subdivision 1a;
11.13(3) released from the trust in favor of the taxing districts as provided in paragraph
11.14(b); or
11.15(4) conveyed or sold under the authority of another general or special law.
11.16(b) The county board may, by resolution duly adopted, resolve that certain lands
11.17classified as conservation lands shall be devoted to conservation uses and may submit
11.18such a resolution to the commissioner of natural resources. If, upon investigation,
11.19the commissioner of natural resources determines that the lands covered by such the
11.20resolution, or any part thereof, can be managed and developed for conservation purposes,
11.21the commissioner shall make a certificate describing the lands and reciting the acceptance
11.22thereof on behalf of the state for such purposes. The commissioner shall transmit the
11.23certificate to the county auditor, who shall note the same upon the auditor's records and
11.24record the same with the county recorder. The title to all lands so accepted shall be held
11.25by the state free from any trust in favor of any and all taxing districts and such the lands
11.26shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
11.27parks, game refuges, controlled game management areas, public shooting grounds, or
11.28other public recreational or conservation uses, and managed, controlled, and regulated
11.29for such purposes under the jurisdiction of the commissioner of natural resources and
11.30the divisions of the department.
11.31(c) All proceeds derived from the sale of timber, lease of crops of hay, or other
11.32revenue from lands under the jurisdiction of the commissioner of natural resources shall
11.33be credited to the general fund of the state.
11.34In case (d) If the commissioner of natural resources shall determine determines that
11.35any tract of land so held acquired by the state under paragraph (b) and situated within or
11.36adjacent to the boundaries of any governmental subdivision of the state is suitable for use
12.1by such the subdivision for any authorized public purpose, the commissioner may convey
12.2such the tract by deed in the name of the state to such the subdivision upon the filing
12.3with the commissioner of a resolution adopted by a majority vote of all the members
12.4of the governing body thereof, stating the purpose for which the land is desired. The
12.5deed of conveyance shall be upon a form approved by the attorney general and must be
12.6conditioned upon continued use for the purpose stated in the resolution. All proceeds
12.7derived from the sale of timber, lease of hay stumpage, or other revenue from such
12.8lands under the jurisdiction of the natural resources commissioner shall be paid into the
12.9general fund of the state.
12.10(e) The county auditor, with the approval of the county board, may lease conservation
12.11lands remaining under the jurisdiction supervision of the county board and sell timber
12.12and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
12.13therefrom shall be distributed in the same manner as provided in section 282.04.
12.14EFFECTIVE DATE.This section is effective July 1, 2010.

12.15    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:
12.16    Subd. 3. Nonconservation lands; appraisal and sale. (a) All parcels of land
12.17classified as nonconservation, except those which may be reserved, shall be sold as
12.18provided, if it is determined, by the county board of the county in which the parcels lie,
12.19that it is advisable to do so, having in mind their accessibility, their proximity to existing
12.20public improvements, and the effect of their sale and occupancy on the public burdens.
12.21Any parcels of land proposed to be sold shall be first appraised by the county board of
12.22the county in which the parcels lie. The parcels may be reappraised whenever the county
12.23board deems it necessary to carry out the intent of sections 282.01 to 282.13.
12.24(b) In an appraisal the value of the land and any standing timber on it shall be
12.25separately determined. No parcel of land containing any standing timber may be sold until
12.26the appraised value of the timber on it and the sale of the land have been approved by the
12.27commissioner of natural resources. The commissioner shall base review of a proposed
12.28sale on the policy and considerations specified in subdivision 1. The decision of the
12.29commissioner shall be in writing and shall state the reasons for it. The commissioner's
12.30decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
12.31does not apply. The county may appeal the decision of the commissioner in accordance
12.32with chapter 14.
12.33(c) In any county in which a state forest or any part of it is located, the county
12.34auditor shall submit to the commissioner at least 60 days before the first publication of the
12.35list of lands to be offered for sale a list of all lands included on the list which are situated
13.1outside of any incorporated municipality. If, at any time before the opening of the sale, the
13.2commissioner notifies the county auditor in writing that there is standing timber on any
13.3parcel of such land, the parcel shall not be sold unless the requirements of this section
13.4respecting the separate appraisal of the timber and the approval of the appraisal by the
13.5commissioner have been complied with. The commissioner may waive the requirement
13.6of the 60-day notice as to any parcel of land which has been examined and the timber
13.7value approved as required by this section.
13.8(d) If any public improvement is made by a municipality after any parcel of land has
13.9been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
13.10whole or in part against the property benefited by it, the clerk of the municipality shall
13.11certify to the county auditor, immediately upon the determination of the assessments for
13.12the improvement, the total amount that would have been assessed against the parcel of land
13.13if it had been subject to assessment; or if the public improvement is made, petitioned for,
13.14ordered in or assessed, whether the improvement is completed in whole or in part, at any
13.15time between the appraisal and the sale of the parcel of land, the cost of the improvement
13.16shall be included as a separate item and added to the appraised value of the parcel of land
13.17at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
13.18from lien for the special benefit conferred upon it by reason of the public improvement
13.19until the cost of it, including penalties, if any, is paid. The county board shall determine
13.20the amount, if any, by which the value of the parcel was enhanced by the improvement and
13.21include the amount as a separate item in fixing the appraised value for the purpose of sale.
13.22In classifying, appraising, and selling the lands, the county board may designate the tracts
13.23as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
13.24smaller units or for the grouping of several tracts into one tract when the subdivision or
13.25grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
13.26tract must be classified and appraised as such before being offered for sale. If any such
13.27lands have once been classified, the board of county commissioners, in its discretion, may,
13.28by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
13.29EFFECTIVE DATE.This section is effective July 1, 2010.

13.30    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:
13.31    Subd. 4. Sale: method, requirements, effects. The sale authorized under
13.32subdivision 3 must be conducted by the county auditor at the county seat of the county in
13.33which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
13.34be conducted in any county facility within the county. The sale must not be for less than
13.35the appraised value except as provided in subdivision 7a. The parcels must be sold for
14.1cash only and at not less than the appraised value, unless the county board of the county
14.2has adopted a resolution providing for their sale on terms, in which event the resolution
14.3controls with respect to the sale. When the sale is made on terms other than for cash only
14.4(1) a payment of at least ten percent of the purchase price must be made at the time of
14.5purchase, and the balance must be paid in no more than ten equal annual installments, or
14.6(2) the payments must be made in accordance with county board policy, but in no event
14.7may the board require more than 12 installments annually, and the contract term must not
14.8be for more than ten years. Standing timber or timber products must not be removed from
14.9these lands until an amount equal to the appraised value of all standing timber or timber
14.10products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
14.11land bearing standing timber or timber products is sold at public auction for more than
14.12the appraised value, the amount bid in excess of the appraised value must be allocated
14.13between the land and the timber in proportion to their respective appraised values. In that
14.14case, standing timber or timber products must not be removed from the land until the
14.15amount of the excess bid allocated to timber or timber products has been paid in addition
14.16to the appraised value of the land. The purchaser is entitled to immediate possession,
14.17subject to the provisions of any existing valid lease made in behalf of the state.
14.18For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
14.19is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
14.20of the purchase price for sales occurring after December 31, 1990, is subject to interest
14.21at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to
14.22change each year on the unpaid balance in the manner provided for rate changes in section
14.23549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract
14.24balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
14.25at the time that the sale occurred.
14.26EFFECTIVE DATE.This section is effective July 1, 2010.

14.27    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:
14.28    Subd. 7. County sales; notice, purchase price, disposition. The sale must
14.29commence at the time determined by the county board of the county in which the parcels
14.30are located. The county auditor shall offer the parcels of land in order in which they
14.31appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
14.32less than the appraised value, until all of the parcels of land have been offered. Then the
14.33county auditor shall sell any remaining parcels to anyone offering to pay the appraised
14.34value, except that if the person could have repurchased a parcel of property under section
14.35282.012 or 282.241, that person may not purchase that same parcel of property at the sale
15.1under this subdivision for a purchase price less than the sum of all taxes, assessments,
15.2penalties, interest, and costs due at the time of forfeiture computed under section 282.251,
15.3and any special assessments for improvements certified as of the date of sale. The sale
15.4must continue until all the parcels are sold or until the county board orders a reappraisal or
15.5withdraws any or all of the parcels from sale. The list of lands may be added to and the
15.6added lands may be sold at any time by publishing the descriptions and appraised values.
15.7The added lands must be: (1) parcels of land that have become forfeited and classified
15.8as nonconservation since the commencement of any prior sale; (2) parcels classified as
15.9nonconservation that have been reappraised; (3) parcels that have been reclassified as
15.10nonconservation; or (4) other parcels that are subject to sale but were omitted from the
15.11existing list for any reason. The descriptions and appraised values must be published in
15.12the same manner as provided for the publication of the original list. Parcels added to the
15.13list must first be offered for sale to the highest bidder before they are sold at appraised
15.14value. All parcels of land not offered for immediate sale, as well as parcels that are offered
15.15and not immediately sold, continue to be held in trust by the state for the taxing districts
15.16interested in each of the parcels, under the supervision of the county board. Those parcels
15.17may be used for public purposes until sold, as directed by the county board.
15.18EFFECTIVE DATE.This section is effective July 1, 2010.

15.19    Sec. 12. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:
15.20    Subd. 7a. City sales; alternate procedures. Land located in a home rule charter
15.21or statutory city, or in a town which cannot be improved because of noncompliance with
15.22local ordinances regarding minimum area, shape, frontage or access may be sold by the
15.23county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
15.24will encourage the approval of sale of the land by the city or town and promote its return
15.25to the tax rolls. If the physical characteristics of the land indicate that its highest and best
15.26use will be achieved by combining it with an adjoining parcel and the city or town has not
15.27adopted a local ordinance governing minimum area, shape, frontage, or access, the land
15.28may also be sold pursuant to this subdivision. If the property consists of an undivided
15.29interest in land or land and improvements, the property may also be sold to the other
15.30owners under this subdivision. The sale of land pursuant to this subdivision shall be
15.31subject to any conditions imposed by the county board pursuant to section 282.03. The
15.32governing body of the city or town may recommend to the county board conditions to be
15.33imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
15.34the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
15.35another means of sale. The land shall be sold to the highest bidder but in no event shall the
16.1land and may be sold for less than its appraised value. All owners of land adjoining the
16.2land to be sold shall be given a written notice at least 30 days prior to the sale.
16.3This subdivision shall be liberally construed to encourage the sale and utilization
16.4of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
16.5compliance with land use ordinances.
16.6EFFECTIVE DATE.This section is effective July 1, 2010.

16.7    Sec. 13. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
16.8to read:
16.9    Subd. 12. Notice; public hearing for use change. If a governmental subdivision
16.10that acquired a parcel for public use under this section later determines to change the use,
16.11it must hold a public hearing on the proposed use change. The governmental subdivision
16.12must mail written notice of the proposed use change and the public hearing to each owner
16.13of property that is within 400 feet of the parcel at least ten days and no more than 60 days
16.14before it holds the hearing. The notice must identify: (1) the parcel, (2) its current use,
16.15(3) the proposed use, (4) the date, time, and place of the public hearing, and (5) where
16.16to submit written comments on the proposal and that the public is invited to testify at
16.17the public hearing.
16.18EFFECTIVE DATE.This section is effective July 1, 2010, and applies to a change
16.19in use of a parcel acquired under Minnesota Statutes, section 282.01, whether acquired by
16.20the governmental subdivision before or after the effective date of this section.

16.21    Sec. 14. REPEALER.
16.22Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,
16.23are repealed.
16.24EFFECTIVE DATE.This section is effective July 1, 2010.