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Minnesota Legislature

Office of the Revisor of Statutes

SF 2977

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state lands; providing for expedited exchanges of public land;
modifying wetlands for wildlife acquisition procedure; 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

Sec. 2.

Minnesota Statutes 2006, section 97A.145, subdivision 2, is amended to read:


Subd. 2.

Acquisition procedure.

(a) Lands purchased or leased under this section
must be acquired in accordance with this subdivision.

(b) The commissioner must notify the county board and the town officers where the
land is located and furnish them a description of the land to be acquired. The county board
must approve or disapprove the proposed acquisition within 90 days after being notified.
The commissioner may extend the time up to 30 days. The soil and water conservation
district supervisors shall counsel the county board on drainage and flood control and the
best utilization and capability of the land.

(c) If the county board approves the acquisition within the prescribed time, the
commissioner may acquire the land.

(d) If the county board disapproves the acquisition, it must state valid reasons. The
commissioner may not purchase or lease the land if the county board disapproves the
acquisition and states its reasons within the prescribed time period. The landowner or the
commissioner may appeal the disapproval to the deleted text begindistrict court having jurisdiction where
the land is located
deleted text endnew text begin Land Exchange Boardnew text end.

(e) The commissioner or the owner of the land may new text beginalso new text endsubmit the proposed
acquisition to the Land Exchange Board ifdeleted text begin: (1)deleted text end the county board deleted text begindoes not give reason for
disapproval, or
deleted text end does not approve or disapprove the acquisition within the prescribed time
perioddeleted text begin; or (2) the court finds that the disapproval is arbitrary and capricious, or that the
reasons stated for disapproval are invalid
deleted text end.

(f) The Land Exchange Board must conduct a hearing and make a decision on the
acquisition within deleted text begin60deleted text end new text begin90 new text enddays after receiving the proposal. The Land Exchange Board
must give notice of the hearing to the county board, the commissioner, the landowner,
and other interested parties. The Land Exchange Board must consider the interests of the
county, the state, and the landowner in determining whether the acquisition is in the public
interest. If a majority of the Land Exchange Board members approves the acquisition,
the commissioner may acquire the land. If a majority disapproves, the commissioner
may not purchase or lease the land.