SF 2651

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state lands; providing for expedited exchanges of public land;
amending Minnesota Statutes 2006, section 97A.145, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapter 94.

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

Section 1.

new text begin [94.3495] EXPEDITED EXCHANGES OF LAND INVOLVING THE
STATE AND GOVERNMENTAL SUBDIVISIONS OF THE STATE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose and scope. new text end

new text begin (a) The purpose of this section is to expedite the
exchange of public land ownership. Consolidation of public land reduces management
costs and aids in the reduction of forest fragmentation.
new text end

new text begin (b) This section applies to exchanges of land between the state and a governmental
subdivision of the state. For land exchanges under this section, sections 94.342 to 94.347
apply only to the extent specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Classes of land; definitions. new text end

new text begin The classes of public land that may be
involved in an expedited exchange under this section are:
new text end

new text begin (1) Class 1 land, which for the purpose of this section is Class A land as defined in
section 94.342, subdivision 1, except for:
new text end

new text begin (i) school trust land as defined in section 92.025; and
new text end

new text begin (ii) university land granted to the state by acts of Congress;
new text end

new text begin (2) Class 2 land, which for the purpose of this section is Class B land as defined in
section 94.342, subdivision 2; and
new text end

new text begin (3) Class 3 land, which for the purpose of this section is all land owned in fee by
a governmental subdivision of the state.
new text end

new text begin Subd. 3. new text end

new text begin Valuation of land. new text end

new text begin (a) In an exchange of Class 1 land for Class 2 or 3 land,
the value of all the land shall be determined by the commissioner of natural resources. In
an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined
by the county board of the county in which the land lies. To determine the value of the
land, the parties to the exchange may cause the land to be appraised, utilize the valuation
process provided under section 84.0272, subdivision 3, or obtain a market analysis from a
qualified real estate broker. Merchantable timber value must be determined and considered
in finalizing valuation of the lands.
new text end

new text begin (b) All lands exchanged under this section shall be exchanged only for lands of
at least substantially equal value. For the purposes of this subdivision, "substantially
equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b).
No payment is due either party if the lands are of substantially equal value but are not
of the same value.
new text end

new text begin Subd. 4. new text end

new text begin Title. new text end

new text begin Title to the land must be examined to the extent necessary for the
parties to determine that the title is good, with any encumbrances identified. The parties to
the exchange may utilize title insurance to aid in the determination.
new text end

new text begin Subd. 5. new text end

new text begin Approval by Land Exchange Board. new text end

new text begin All expedited land exchanges
under this section, and the terms and conditions of the exchanges, require the unanimous
approval of the Land Exchange Board.
new text end

new text begin Subd. 6. new text end

new text begin Conveyance. new text end

new text begin (a) Conveyance of Class 1 land given in exchange shall be
made by deed executed by the commissioner of natural resources in the name of the
state. Conveyance of Class 2 land given in exchange shall be by a deed executed by the
commissioner of revenue in the name of the state. Conveyance of Class 3 land shall be by
a deed executed by the governing body in the name of the governing authority.
new text end

new text begin (b) If Class 1 land is given in exchange for Class 2 or 3 land, the deed to the Class
2 or 3 land shall first be delivered to the commissioner of natural resources. Following
the recording of the deed, the commissioner of natural resources shall deliver the deed
conveying the Class 1 land.
new text end

new text begin (c) If Class 2 land is given in exchange for Class 3 land, the deed to the Class 3 land
shall first be delivered to the county auditor. Following the recording of the deed, the
commissioner of revenue shall deliver the deed conveying the Class 2 land.
new text end

new text begin (d) All deeds shall be recorded or registered in the county in which the lands lie.
new text end

new text begin Subd. 7. new text end

new text begin Reversionary interest; mineral and water power rights and other
reservations. new text end

new text begin (a) All deeds conveying land given in an expedited land exchange under
this section shall include a reverter that provides that title to the land automatically reverts
to the conveying governmental unit if:
new text end

new text begin (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
the land within 40 years of the date of the deed conveying ownership; and
new text end

new text begin (2) there is no prior written approval for such transfer from the conveying
governmental unit. The authority for granting approval is the commissioner of natural
resources for former Class 1 land, the county board for former Class 2 land, and the
governing body for former Class 3 land.
new text end

new text begin (b) Class 1 land given in exchange is subject to the reservation provisions of section
94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
new text end

new text begin Subd. 8. new text end

new text begin Land status. new text end

new text begin Land received in exchange for Class 1 land is subject to the
same trust, if any, and otherwise has the same status as the land given in exchange. Land
received in exchange for Class 2 land is subject to a trust in favor of the governmental
subdivision wherein it lies and all laws relating to tax-forfeited land. Land received in
exchange for Class 3 land has the same status as the land given in exchange.
new text end