SF 3733

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

A bill for an act
relating to natural resources; modifying timber sales provisions; providing for
refunds; amending Minnesota Statutes 2006, section 90.14.

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

Section 1.

Minnesota Statutes 2006, 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 within ten business days of receiving a written award
notice. 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 purchaser shall 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). If the 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.

new text begin (f) In the case of a public auction sale conducted by an open bid process, if a bidder
is later found ineligible, the commissioner must offer the timber for sale to the highest
qualified bidder.
new text end

Sec. 2. new text begin RETROACTIVE REFUNDS.
new text end

new text begin For sales that took place between January 1, 2007, and June 30, 2008, where a
qualified purchaser would have been eligible to purchase the timber at a lower price under
Minnesota Statutes, section 90.14, paragraph (f), the commissioner shall refund to that
purchaser, upon request, the difference between the purchase price paid and the price the
purchaser would have paid under Minnesota Statutes, section 90.14, paragraph (f).
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2008.
new text end