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SF 805

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:16am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to natural resources; eliminating the need to scale cut forest products on
state land; amending Minnesota Statutes 2008, sections 90.031, subdivision 5;
90.061, subdivisions 5, 8; 90.14; 90.151, subdivision 4; 90.181, subdivision
1; 90.221; 90.281; 90.41; repealing Minnesota Statutes 2008, sections 90.01,
subdivision 4; 90.201, subdivision 2; 90.251; 90.252.

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

Section 1.

Minnesota Statutes 2008, section 90.031, subdivision 5, is amended to read:


Subd. 5.

Appointment of agents.

The Executive Council may appoint one or
more agents to gather evidence in any action brought by the state or to investigate the
correctness of any state appraiser's deleted text begin or scaler'sdeleted text end report or to ascertain whether any timber
proposed to be sold is subject to sale, or whether any trespass has been committed on
state lands, and may send deleted text begin suchdeleted text end new text begin thenew text end agent to examine deleted text begin suchdeleted text end new text begin thenew text end timber or lands. deleted text begin Suchdeleted text end new text begin Thenew text end
agents of the Executive Council, independently of the commissionerdeleted text begin ,deleted text end new text begin ornew text end state appraisersdeleted text begin ,
or scalers
deleted text end shall report, in writing, to the governor, and the money necessary to defray
expenses in connection therewith shall be paid upon verified accounts from any funds
available for the expenses of the Executive Council.

Sec. 2.

Minnesota Statutes 2008, section 90.061, subdivision 5, is amended to read:


Subd. 5.

Appraiser duties.

The duties of the state appraiser shall be to appraise and
place a valuation upon any state lands or any state timber or any interest therein anywhere;
to deleted text begin check-scaledeleted text end new text begin appraisenew text end timber cut from state lands in trespass, either situated upon state
lands or removed therefrom; deleted text begin to check-scale any scale of timber cut on state lands; to make
check-scales, by the stump and top, or any other method, of timber removed from state
lands;
deleted text end and to perform deleted text begin suchdeleted text end other duties as may be assigned.

Sec. 3.

Minnesota Statutes 2008, section 90.061, subdivision 8, is amended to read:


Subd. 8.

Appraiser authority; form of documents.

State appraisers are
empowered, with the consent of the commissioner, to perform any deleted text begin scalingdeleted text end new text begin appraisalnew text end , and
generally to supervise the cutting and removal of timber on or from state lands so far as
may be reasonably necessary to insure compliance with the terms of the permits or other
contracts governing the same and protect the state from loss.

The form of appraisal reports, records, and notes to be kept by state appraisers
shall be as the commissioner prescribes.

Sec. 4.

Minnesota Statutes 2008, 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 deleted text begin suchdeleted text end 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) deleted text begin In lieu of the scaling of state timber required by this chapter,deleted text end A purchaser of
state timber deleted text begin maydeleted text end new text begin shallnew text end , at the time of payment by the purchaser to the commissioner of
15 percent of the appraised value, deleted text begin elect in writing on a form prescribed by the attorney
general to
deleted text end purchase a permit based solely on the appraiser's estimate of the volume of
timber described in the permitdeleted text begin , 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
deleted text end .

(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.

Sec. 5.

Minnesota Statutes 2008, section 90.151, subdivision 4, is amended to read:


Subd. 4.

Permit terms.

The permit shall provide that all timber sold or designated
for cutting shall be cut without damage to other timber; that the permit holder shall remove
all timber authorized to be cut under the permit; deleted text begin that timber sold by board measure but
later determined by the commissioner not to be convertible into board measure shall be
paid for by the piece or cord or other unit of measure according to the size, species, or
value, as may be determined by the commissioner; that all timber products, except as
specified by the commissioner, shall be scaled and the final settlement for the timber cut
shall be made on this scale;
deleted text end and that the permit holder shall pay to the state the permit
price for all timber authorized to be cut, including timber not cut.

Sec. 6.

Minnesota Statutes 2008, section 90.181, subdivision 1, is amended to read:


Subdivision 1.

Passage of title to timber.

(a) The commissioner shall transmit to
the permit holder a statement of the amount due therefor by the terms of the permit upon
completion of the cutting or at least annually in the case of an auction permit. Any partial
payment received may be applied to any items on the statement as the commissioner
shall determine.

(b) The title to the timber shall not pass from the state until deleted text begin the timber has been
scaled as required by the permit,
deleted text end full payment for the timber has been received, and all
other provisions of the permit have been fully complied with.

Sec. 7.

Minnesota Statutes 2008, section 90.221, is amended to read:


90.221 TIMBER SALES RECORDS.

The commissioner shall keep timber sales records, including the description of each
tract of land from which any timber is sold; the date of the report of the state appraisers;
the kind, amount, and value of the timber as shown by deleted text begin suchdeleted text end new text begin thenew text end report; the date of the sale;
the price for which the timber was sold; the name of the purchaser; the number, date of
issuance and date of expiration of each permit; the date of any assignment of the permit;
the name of the assignee; the dates of the filing and the amounts of the respective bonds
by the purchaser and assignee; the names of the sureties thereon; the amount of timber
taken from the land; deleted text begin the date of the report of the scaler and state appraiser; the names of
the scaler and the state appraiser who scaled the timber;
deleted text end and the amount paid for deleted text begin suchdeleted text end new text begin thenew text end
timber and the date of payment.

Sec. 8.

Minnesota Statutes 2008, section 90.281, is amended to read:


90.281 deleted text begin RESCALES, RECOUNTS ANDdeleted text end REESTIMATES.

(a) Upon complaint of any interested permit holder questioning the accuracy of
any deleted text begin scale, count, ordeleted text end estimate of timber made by any state appraiser, or at any other time
the commissioner determines in the absence of a complaint, the commissioner may
cause a deleted text begin rescale, recount, ordeleted text end reestimate thereof to be made jointly by any two or more
state appraisers, which when made shall supersede and for all purposes take the place of
the original deleted text begin scale, count, ordeleted text end estimate, if and only when the deleted text begin scale or count varies more
than ten percent from the original or the
deleted text end estimate exceeds the standards established by
section 90.045.

(b) As a condition precedent to the making of a deleted text begin rescale, recount, ordeleted text end reestimate upon
the complaint of any person, the commissioner may require the person to make available
deleted text begin suchdeleted text end new text begin anew text end sum of money as the commissioner deems necessary for the actual expenses thereof
and to forfeit the same to the state if deleted text begin the rescale and recount does not vary more than ten
percent from the original or
deleted text end the reestimate does not exceed the standards established by
section 90.045. All forfeited money shall be paid into the state treasury and credited to the
fund or account from which the expenses of the deleted text begin rescale, recount, ordeleted text end reestimate were paid.

Sec. 9.

Minnesota Statutes 2008, section 90.41, is amended to read:


90.41 STATE APPRAISER deleted text begin AND SCALERdeleted text end ; VIOLATIONS, PENALTIES.

Subdivision 1.

Violations.

Any deleted text begin state scaler or deleted text end state appraiser who shall accept any
compensation or gratuity for servicesdeleted text begin as suchdeleted text end from any other source except the state of
Minnesota, or deleted text begin any state scaler, or other person authorized to scale state timber, ordeleted text end state
appraiser, who shall make any false report, or insert in any deleted text begin suchdeleted text end report any false statement,
or shall make any deleted text begin suchdeleted text end report without having examined the land embraced therein or
without having actually been upon the land, or omit from any deleted text begin suchdeleted text end report any statement
required by law to be made therein, or who shall fail to report any known trespass
committed upon state lands, or who shall conspire with any other person in any manner, by
act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
land or timber, or the value thereof, shall be guilty of a felony. deleted text begin Any material discrepancy
between the facts and the scale returned by any such person scaling timber for the state
shall be considered prima facie evidence that such person is guilty of violating this statute.
deleted text end

No deleted text begin suchdeleted text end appraiser deleted text begin or scalerdeleted text end who has been once discharged for cause shall ever again
be appointed. This provision shall not apply to resignations voluntarily made by and
accepted from deleted text begin suchdeleted text end employees.

Subd. 2.

Penalty.

Every person who shall cut timber on state lands and fail to mark
the same, as provided by law, and the permit under which the same was cut, shall be
guilty of a gross misdemeanor.

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 90.01, subdivision 4; 90.201, subdivision 2;
90.251; and 90.252,
new text end new text begin are repealed.
new text end