as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to natural resources; modifying provisions 1.3 relating to timber sales on tax-forfeited land; 1.4 amending Minnesota Statutes 2002, section 282.04, 1.5 subdivision 1. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 2002, section 282.04, 1.8 subdivision 1, is amended to read: 1.9 Subdivision 1. [TIMBER SALES; LAND LEASES AND USES.] (a) 1.10 The county auditor may sell timber upon any tract that may be 1.11 approved by the natural resources commissioner.
SuchThe sale 1.12 of timber shall be made for cash at not less than the appraised 1.13 value determined by the county board to the highest bidder after 1.14 not less than one week's published notice in an official paper 1.15 within the county. Any timber offered at suchthe public sale 1.16 and not sold may thereafter be sold at private sale by the 1.17 county auditor at not less than the appraised value thereof, 1.18 until suchthe time as the county board may withdraw suchthe 1.19 timber from sale. The appraised value of the timber and the 1.20 forestry practices to be followed in the cutting of said timber 1.21 shall be approved by the commissioner of natural resources. 1.22 (b) Payment of the full sale price of all timber sold on 1.23 tax-forfeited lands shall be made in cash at the time of the 1.24 timber sale, except in the case of oral or sealed bid auction 1.25 sales, the down payment shall be no less than 15 percent of the 2.1 appraised value, and the balance shall be paid prior to entry. 2.2 In the case of auction sales that are partitioned and sold as a 2.3 single sale with predetermined cutting blocks, the down payment 2.4 shall be no less than 15 percent of the appraised price of the 2.5 entire timber sale which may be held until the satisfactory 2.6 completion of the sale or applied in whole or in part to the 2.7 final cutting block. The value of each separate block must be 2.8 paid in full before any cutting may begin in that block. With 2.9 the permission of the county administrator the purchaser may 2.10 enter unpaid blocks and cut necessary timber incidental to 2.11 developing logging roads as may be needed to log other blocks 2.12 provided that no timber may be removed from an unpaid block 2.13 until separately scaled and paid for. If payment is provided as 2.14 specified in this paragraph as security under paragraph (a) and 2.15 no cutting has taken place on the contract, the county auditor 2.16 may credit the security provided, less any down payment required 2.17 for an auction sale under this paragraph, to any other contract 2.18 issued to the contract holder by the county under this chapter 2.19 to which the contract holder requests in writing that it be 2.20 credited, provided the request and transfer is made within the 2.21 same calendar year as the security was received. 2.22 (c) The county board may require final settlement on the 2.23 basis of a scale of cut products. Any parcels of land from 2.24 which timber is to be sold by scale of cut products shall be so 2.25 designated in the published notice of sale above mentionedunder 2.26 paragraph (a), in which case the notice shall contain a 2.27 description of suchthe parcels, a statement of the estimated 2.28 quantity of each species of timber thereon, and the appraised 2.29 price of each speciespecies of timber for 1,000 feet, per cord 2.30 or per piece, as the case may be. In suchthose cases any bids 2.31 offered over and above the appraised prices shall be by 2.32 percentage, the percent bid to be added to the appraised price 2.33 of each of the different species of timber advertised on the 2.34 land. The purchaser of timber from suchthe parcels shall pay 2.35 in cash at the time of sale at the rate bid for all of the 2.36 timber shown in the notice of sale as estimated to be standing 3.1 on the land, and in addition shall pay at the same rate for any 3.2 additional amounts which the final scale shows to have been cut 3.3 or was available for cutting on the land at the time of sale 3.4 under the terms of suchthe sale. Where the final scale of cut 3.5 products shows that less timber was cut or was available for 3.6 cutting under terms of suchthe sale than was originally paid 3.7 for, the excess payment shall be refunded from the forfeited tax 3.8 sale fund upon the claim of the purchaser, to be audited and 3.9 allowed by the county board as in case of other claims against 3.10 the county. No timber, except hardwood pulpwood, may be removed 3.11 from suchthe parcels of land or other designated landings until 3.12 scaled by a person or persons designated by the county board and 3.13 approved by the commissioner of natural resources. Landings 3.14 other than the parcel of land from which timber is cut may be 3.15 designated for scaling by the county board by written agreement 3.16 with the purchaser of the timber. The county board may, by 3.17 written agreement with the purchaser and with a consumer 3.18 designated by the purchaser when the timber is sold by the 3.19 county auditor, and with the approval of the commissioner of 3.20 natural resources, accept the consumer's scale of cut products 3.21 delivered at the consumer's landing. No timber shall be removed 3.22 until fully paid for in cash. Small amounts of timber not 3.23 exceeding $3,000 in appraised valuation may be sold for not less 3.24 than the full appraised value at private sale to individual 3.25 persons without first publishing notice of sale or calling for 3.26 bids, provided that in case of sucha sale involving a total 3.27 appraised value of more than $200 the sale shall be made subject 3.28 to final settlement on the basis of a scale of cut products in 3.29 the manner above provided and not more than two suchof the 3.30 sales, directly or indirectly to any individual shall be in 3.31 effect at one time. 3.32 (d) As directed by the county board, the county auditor may 3.33 lease tax-forfeited land to individuals, corporations or 3.34 organized subdivisions of the state at public or private vendue3.35 sale, and at suchthe prices and under suchthe terms as the 3.36 county board may prescribe, for use as cottage and camp sites 4.1 and for agricultural purposes and for the purpose of taking and 4.2 removing of hay, stumpage, sand, gravel, clay, rock, marl, and 4.3 black dirt therefromfrom the land, and for garden sites and 4.4 other temporary uses provided that no leases shall be for a 4.5 period to exceed ten years; provided, further that any leases 4.6 involving a consideration of more than $12,000 per year, except 4.7 to an organized subdivision of the state shall first be offered 4.8 at public sale in the manner provided herein for sale of timber. 4.9 Upon the sale of any suchleased land, it shall remain subject 4.10 to the lease for not to exceed one year from the beginning of 4.11 the term of the lease. Any rent paid by the lessee for the 4.12 portion of the term cut off by suchthe cancellation shall be 4.13 refunded from the forfeited tax sale fund upon the claim of the 4.14 lessee, to be audited and allowed by the county board as in case 4.15 of other claims against the county. 4.16 (e) As directed by the county board, the county auditor may 4.17 lease tax-forfeited land to individuals, corporations, or 4.18 organized subdivisions of the state at public or private vendue4.19 sale, at suchthe prices and under suchthe terms as the 4.20 county board may prescribe, for the purpose of taking and 4.21 removing for use for road construction and other purposes 4.22 tax-forfeited stockpiled iron-bearing material. The county 4.23 auditor must determine that the material is needed and suitable 4.24 for use in the construction or maintenance of a road, tailings 4.25 basin, settling basin, dike, dam, bank fill, or other works on 4.26 public or private property, and that the use would be in the 4.27 best interests of the public. No lease shall exceed ten years. 4.28 The use of a stockpile for these purposes must first be approved 4.29 by the commissioner of natural resources. The request shall be 4.30 deemed approved unless the requesting county is notified to the 4.31 contrary by the commissioner of natural resources within six 4.32 months after receipt of a request for approval for use of a 4.33 stockpile. Once use of a stockpile has been approved, the 4.34 county may continue to lease it for these purposes until 4.35 approval is withdrawn by the commissioner of natural resources. 4.36 (f) The county auditor, with the approval of the county 5.1 board is authorized to grant permits, licenses, and leases to 5.2 tax-forfeited lands for the depositing of stripping, lean ores, 5.3 tailings, or waste products from mines or ore milling plants, 5.4 upon suchthe conditions and for suchthe consideration and for 5.5 suchthe period of time, not exceeding 15 years, as the county 5.6 board may determine ; said. The permits, licenses, or leases to5.7 beare subject to approval by the commissioner of natural 5.8 resources. 5.9 (g) Any person who removes any timber from tax-forfeited 5.10 land before said timber has been scaled and fully paid for as 5.11 provided in this subdivision is guilty of a misdemeanor. 5.12 (h) The county auditor may, with the approval of the county 5.13 board, and without first offering at public sale, grant leases, 5.14 for a term not exceeding 25 years, for the removal of peat from 5.15 tax-forfeited lands upon suchthe terms and conditions as the 5.16 county board may prescribe. Any lease for the removal of peat 5.17 from tax-forfeited lands must first be reviewed and approved by 5.18 the commissioner of natural resources if the lease covers 320 or 5.19 more acres. No lease for the removal of peat shall be made by 5.20 the county auditor pursuant to this section without first 5.21 holding a public hearing on the auditor's intention to lease. 5.22 One printed notice in a legal newspaper in the county at least 5.23 ten days before the hearing, and posted notice in the courthouse 5.24 at least 20 days before the hearing shall be given of the 5.25 hearing. 5.26 (i) Notwithstanding any provision of paragraph (c) to the 5.27 contrary, the St. Louis County auditor may, at the discretion of 5.28 the county board, sell timber to the party who bids the highest 5.29 price for all the several kinds of timber, as provided for sales 5.30 by the commissioner of natural resources under section 90.14. 5.31 Bids offered over and above the appraised price need not be 5.32 applied proportionately to the appraised price of each of the 5.33 different species of timber. 5.34 (j) In lieu of any payment or deposit required in paragraph 5.35 (b), as directed by the county board and under terms set by the 5.36 county board, the county auditor may accept an irrevocable bank 6.1 letter of credit in the amount equal to the amount otherwise 6.2 determined in paragraph (b), exclusive of the down payment 6.3 required for an auction sale in paragraph (b). If an 6.4 irrevocable bank letter of credit is provided under this 6.5 paragraph, at the written request of the purchaser, the county 6.6 may periodically allow the bank letter of credit to be reduced 6.7 by an amount proportionate to the value of timber that has been 6.8 harvested and for which the county has received payment. The 6.9 remaining amount of the bank letter of credit after a reduction 6.10 under this paragraph must not be less than 20 percent of the 6.11 value of the timber purchased. If no cutting of timber has 6.12 taken place on the contract for which a letter of credit has 6.13 been provided, the county may allow the transfer of the letter 6.14 of credit to any other contract issued to the contract holder by 6.15 the county under this chapter to which the contract holder 6.16 requests in writing that it be credited.