SF 1126

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 03/23/2010 01:32pm

A bill for an act
relating to real property; modifying procedures relating to uses and conveyances
of tax-forfeited property; amending Minnesota Statutes 2008, section 282.01,
subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions; repealing
Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, 11; 383A.76.

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

Section 1.

Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:

Subdivision 1.

Classification as conservation or nonconservation.

deleted text begin It is the general
policy of this state to encourage the best use of tax-forfeited lands, recognizing deleted text end new text begin (a) When
acting on behalf of the state under laws allowing the county board to classify and manage
tax-forfeited lands held by the state in trust for the local units as provided in section
281.25, the county board may decide new text end that some lands in public ownership should be
retained and managed for public benefits while other lands should be returned to private
ownership. Parcels of land becoming the property of the state in trust under law declaring
the forfeiture of lands to the state for taxes must be classified by the county board of
the county in which the parcels lie as conservation or nonconservation. In making the
classification the board shall consider the present use of adjacent lands, the productivity of
the soil, the character of forest or other growth, accessibility of lands to established roads,
schools, and other public services, their peculiar suitability or desirability for particular
uses and the suitability of the forest resources on the land for multiple use deleted text begin , deleted text end new text begin and new text end sustained
yield management. The classification, furthermore, must new text begin : (1) new text end encourage and foster a
mode of land utilization that will facilitate the economical and adequate provision of
transportation, roads, water supply, drainage, sanitation, education, and recreation; new text begin (2) new text end
facilitate reduction of governmental expenditures; new text begin (3) new text end conserve and develop the natural
resources; and new text begin (4) new text end foster and develop agriculture and other industries in the districts and
places best suited to them.

deleted text begin In making the classification the county board may use information made available
by any office or department of the federal, state, or local governments, or by any other
person or agency possessing pertinent information at the time the classification is made.
The lands may be reclassified from time to time as the county board considers necessary
or desirable, except for conservation lands held by the state free from any trust in favor of
any taxing district.
deleted text end

deleted text begin If the lands are located within the boundaries of an organized town, with taxable
valuation in excess of $20,000, or incorporated municipality, the classification or
reclassification and sale must first be approved by the town board of the town or the
governing body of the municipality in which the lands are located. The town board of
the town or the governing body of the municipality is considered to have approved
the classification or reclassification and sale if the county board is not notified of the
disapproval of the classification or reclassification and sale within 60 days of the date the
request for approval was transmitted to the town board of the town or governing body
of the municipality. If the town board or governing body desires to acquire any parcel
lying in the town or municipality by procedures authorized in this section, it must file a
written application with the county board to withhold the parcel from public sale. The
application must be filed within 60 days of the request for classification or reclassification
and sale. The county board shall then withhold the parcel from public sale for six months.
A municipality or governmental subdivision shall pay maintenance costs incurred by
the county during the six-month period while the property is withheld from public sale,
provided the property is not offered for public sale after the six-month period. A clerical
error made by county officials does not serve to eliminate the request of the town board
or governing body if the board or governing body has forwarded the application to the
county auditor. If the town board or governing body of the municipality fails to submit an
application and a resolution of the board or governing body to acquire the property within
the withholding period, the county may offer the property for sale upon the expiration of
the withholding period.
deleted text end

new text begin (b) Whenever the county board deems it appropriate, the board may hold a meeting
for the purpose of reclassifying tax-forfeited land that has not been sold or released from
the trust. The criteria and procedures for reclassification are the same as those required for
an initial classification.
new text end

new text begin (c) Before meeting for the purpose of classifying or reclassifying tax-forfeited lands,
the county board must give notice of its intent to meet for that purpose as provided in this
paragraph. The notice must be given no more than 90 days and no less than 60 days before
the date of the meeting, provided that if the meeting is rescheduled, notice of the new
date, time, and location must be given at least 14 days before the date of the rescheduled
meeting. The notice must be posted on a Web site. The notice must also be mailed or
otherwise delivered to each person who has filed a request for notice of special meetings
with the public body, regardless of whether the matter is considered at a regular or special
meeting. The notice must be mailed or delivered at least 60 days before the date of the
meeting. If the meeting is rescheduled, notice of the new date, time, and location must be
mailed or delivered at least 14 days before the date of the rescheduled meeting. The public
body shall publish the notice once, at least 30 days before the meeting, in a newspaper of
general circulation within the area of the public body's authority. The board must also mail
a notice by electronic means to each person who requests notice of meetings dealing with
this subject and who agrees as provided in chapter 325L to accept notice that is mailed
by electronic means. Receipt of actual notice under the conditions specified in section
13D.04, subdivision 7, satisfies the notice requirements of this paragraph.
new text end

new text begin The board may classify or reclassify tax-forfeited lands at any regular or special
meeting, as those terms are defined in chapter 13D, and may conduct only this business, or
this business as well as other business or activities, at the meeting.
new text end

new text begin (d) At the meeting, the county board must allow any person or agency possessing
pertinent information to make or submit comments and recommendations about the
pending classification or reclassification. In addition, representatives of governmental
entities in attendance must be allowed to describe plans, ideas, or projects that may
involve use or acquisition of the property by that or another governmental entity. The
county board must solicit and consider any relevant components of current municipal or
metropolitan comprehensive land use plans that incorporate the area in which the land
is located. After allowing testimony, the board may classify, reclassify, or delay taking
action on any parcel. In order for a state agency or a governmental subdivision of the state
to preserve its right to request a purchase or other acquisition of a forfeited parcel, it
may, at any time following forfeiture, file a written request to withhold the parcel from
sale or lease to others under subdivision 1a.
new text end

new text begin (e) When classifying, reclassifying, appraising, and selling lands under this chapter,
the county board may designate the tracts as assessed and acquired, or may by resolution
provide for the subdivision of the tracts into smaller units or for the grouping of several
tracts into one tract when the subdivision or grouping is deemed advantageous for
conservation or sale purposes. This paragraph does not authorize the county board to
subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
from sale under section 282.018, subdivision 1.
new text end

new text begin (f) A county board may by resolution elect to use the classification and
reclassification procedures provided in paragraphs (g), (h), and (i), instead of the
procedures provided in paragraphs (b), (c), and (d). Once an election is made under this
paragraph, it is effective for a minimum of five years.
new text end

new text begin (g) The classification or reclassification of tax-forfeited land that has not been sold or
released from the trust may be made by the county board using information made available
to it by any office or department of the federal, state, or local governments, or by any other
person or agency possessing pertinent information at the time the classification is made.
new text end

new text begin (h) If the lands are located within the boundaries of an organized town or
incorporated municipality, a classification or reclassification and sale must first be
approved by the town board of the town or the governing body of the municipality in
which the lands are located. The town board of the town or the governing body of the
municipality is considered to have approved the classification or reclassification and sale
if the county board is not notified of the disapproval of the classification or reclassification
and sale within 60 days of the date the request for approval was transmitted to the town
board of the town or governing body of the municipality. If the town board or governing
body disapproves of the classification or reclassification and sale, the county board must
follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must
additionally cause to be published in a newspaper a notice of the date, time, location, and
purpose of the required meeting.
new text end

new text begin (i) If a town board or a governing body of a municipality or a park and recreation
board in a city of the first class desires to acquire any parcel lying in the town or
municipality by procedures authorized in this section, it may file a written request under
subdivision 1a, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:

Subd. 1a.

Conveyance deleted text begin ; generally deleted text end new text begin to public entities new text end .

new text begin (a) Upon written request
from a state agency or a governmental subdivision of the state, a parcel of unsold
tax-forfeited land must be withheld from sale or lease to others for a maximum of six
months. The request must be submitted to the county auditor. Upon receipt, the county
auditor must withhold the parcel from sale or lease to any other party for six months and
must confirm the starting date of the six-month withholding period to the requesting
agency or subdivision. If the request is from a governmental subdivision of the state, the
governmental subdivision must pay the maintenance costs incurred by the county during
the period the parcel is withheld. The county board may approve a sale or conveyance to
the requesting party during the withholding period. A conveyance of the property to the
requesting party terminates the withholding period.
new text end

new text begin A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months
of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given notice to the
requesting state agency or governmental subdivision of the state that the county intends to
sell or otherwise dispose of the property.
new text end

new text begin (b) new text end new text begin Nonconservation new text end tax-forfeited lands may be sold new text begin by the county board, for
their market value as determined new text end by the county board new text begin , new text end to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision
is authorized to acquire property deleted text begin or deleted text end new text begin . For purposes of this section, "market value" means
an estimate of the full and actual market value of the parcel as determined by the county
board. In making this determination, the board and the persons employed by or under
contract with the board in order to perform, conduct, or assist in the determination, are
exempt from the licensure requirements of chapter 82B.
new text end

new text begin (c) Nonconservation tax-forfeited lands new text end may be released from the trust in favor of the
taxing districts on application deleted text begin of deleted text end new text begin to the county board by new text end a state agency for an authorized
use at not less than their new text begin market new text end value as determined by the county board.

new text begin (d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:
new text end

new text begin (1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market or the reduced price will
lead to the development of affordable housing; and
new text end

new text begin (2) the governmental subdivision or state agency has documented its specific plans
for correcting the blighted conditions or developing affordable housing and the specific
law or laws that empower it to acquire real property in furtherance of the plans.
new text end

new text begin If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quit claim
deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
conveyance document that releases the property from the trust in favor of the taxing
districts.
new text end

new text begin (e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed by new text end the commissioner of revenue deleted text begin may convey by deed deleted text end in the name
of the state deleted text begin a tract of tax-forfeited land held in trust in favor of the taxing districts deleted text end to a
governmental subdivision for an authorized public use, if an application is submitted to
the commissioner which includes a statement of facts as to the use to be made of the
tract deleted text begin and the need therefor deleted text end and the new text begin favorable new text end recommendation of the county board. new text begin For
purposes of this paragraph, "authorized public use" means a use that allows an indefinite
segment of the public to physically use and enjoy the property in numbers appropriate to
its size and use or that is for a public service facility. Authorized public uses under this
paragraph are limited to:
new text end

new text begin (1) a road or right-of-way for a road;
new text end

new text begin (2) a park that is both available to, and accessible by, the public that contains
amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
new text end

new text begin (3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;
new text end

new text begin (4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
including transit ways, park-and-ride lots, transit stations, maintenance and garage
facilities, and other facilities related to a public transit system;
new text end

new text begin (5) public beaches or boat launches;
new text end

new text begin (6) public parking;
new text end

new text begin (7) civic recreation or conference facilities; and
new text end

new text begin (8) public service facilities such as fire halls, police stations, lift stations, water
towers, sanitation facilities, water treatment facilities, and administrative offices.
new text end

new text begin No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
new text end

new text begin (f) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision of the state by quit claim deed
on behalf of the state upon the favorable recommendation of the county board if the
governmental subdivision has certified to the board that before the forfeiture the
subdivision was entitled to the parcel under a written development agreement or
instrument, but the conveyance failed to occur before forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.
new text end

new text begin (g) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to the association of a common interest community by quit claim deed
upon the favorable recommendation of the county board if the association certifies to the
board that before forfeiture the association was entitled to the parcel under a written
agreement, but the conveyance failed to occur before forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.
new text end

new text begin (h) Conservation tax-forfeited land may be sold to a governmental subdivision
of the state for less than its market value for: (1) creation or preservation of wetlands;
(2) drainage or storage of storm water under a storm water management plan; or (3)
preservation, or restoration and preservation, of the land in its natural state. The deed must
contain a restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the
governmental subdivision may reconvey the property to the state in trust for the taxing
districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph may be refunded upon a
reconveyance, but the amount paid for a conveyance under this paragraph may be taken
into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the commissioner
of natural resources determines there is a mineral use potential, the sale is subject to the
approval of the commissioner of natural resources.
new text end

new text begin (i) A park and recreation board in a city of the first class is a governmental
subdivision for the purposes of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 3.

Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:

Subd. 1b.

Conveyance; targeted neighborhood lands.

deleted text begin (a) deleted text end Notwithstanding
subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood deleted text begin , as
defined in section 469.201, subdivision 10 deleted text end new text begin in a city of the first class new text end , the commissioner of
revenue shall convey by new text begin quit claim new text end deed in the name of the state any tract of tax-forfeited
land held in trust in favor of the taxing districts, to a political subdivision new text begin of the state new text end that
submits an application to the commissioner of revenue and the new text begin favorable new text end recommendation
of the county board. new text begin For purposes of this subdivision, the term "targeted neighborhood"
has the meaning given in section 469.201, subdivision 10, except that the land must be
located within a first class city.
new text end

deleted text begin (b) The application under paragraph (a) must include a statement of facts as to the
use to be made of the tract, the need therefor, and a resolution, adopted by the governing
body of the political subdivision, finding that the conveyance of a tract of tax-forfeited
land to the political subdivision is necessary to provide for the redevelopment of land as
productive taxable property. Deeds of conveyance issued under paragraph (a) are not
conditioned on continued use of the property for the use stated in the application.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:

Subd. 1c.

Deed of conveyance; form; approvals.

The deed of conveyance for
property conveyed for deleted text begin a deleted text end new text begin an authorized new text end public use new text begin under the authorities in subdivision
1a, paragraph (e), new text end must be on a form approved by the attorney general and must be
conditioned on continued use for the purpose stated in the application new text begin as provided in this
section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
of the estate occurs by operation of law and without the requirement for any affirmative
act by or on behalf of the state when there is a failure to put the property to the approved
authorized public use for which it was conveyed, or an abandonment of that use, except as
provided in subdivision 1d new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 5.

Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:

Subd. 1d.

Reverter for failure to use; conveyance to state.

new text begin (a) new text end If after three years
from the date of the conveyance a governmental subdivision to which tax-forfeited land
has been conveyed for deleted text begin a specified deleted text end new text begin an authorized new text end public use as provided in deleted text begin this section deleted text end new text begin
subdivision 1a, paragraph (e), new text end fails to put the land to that use, or abandons that use, the
governing body of the subdivision deleted text begin may, deleted text end new text begin must: (1) new text end with the approval of the county board,
purchase the property for an authorized public purpose at the present deleted text begin appraised deleted text end new text begin market new text end
value as determined by the county board deleted text begin . In that case, the commissioner of revenue shall,
upon proper written application approved by the county board, issue an appropriate deed
to the subdivisions free of a use restriction and reverter. The governing body may also deleted text end new text begin , or
(2) new text end authorize the proper officers to convey the land, or the part of the land not required for
an authorized public use, to the state of Minnesota deleted text begin . deleted text end new text begin in trust for the taxing districts. If the
governing body purchases the property under clause (1), the commissioner of revenue
shall, upon proper application submitted by the county auditor, convey the property on
behalf of the state by quit claim deed to the subdivision free of a use restriction and the
possibility of reversion or defeasement. If the governing body decides to reconvey the
property to the state under this clause, new text end the officers shall execute a deed of conveyance
immediately. The conveyance is subject to the approval of the commissioner and its form
must be approved by the attorney general. deleted text begin A sale, lease, transfer, or other conveyance
of tax-forfeited lands by a housing and redevelopment authority, a port authority, an
economic development authority, or a city as authorized by chapter 469 is not an
abandonment of use and the lands shall not be reconveyed to the state nor shall they
revert to the state. A certificate made by a housing and redevelopment authority, a port
authority, an economic development authority, or a city referring to a conveyance by it
and stating that the conveyance has been made as authorized by chapter 469 may be filed
with the county recorder or registrar of titles, and the rights of reverter in favor of the state
provided by subdivision 1e will then terminate. No vote of the people is required for the
conveyance. deleted text end new text begin For the purposes of this paragraph, there is no failure to put the land to the
authorized public use and no abandonment of that use if a formal plan of the governmental
subdivision, including, but not limited to, a comprehensive plan or land use plan that
shows an intended future use of the land for the authorized public use.
new text end

new text begin (b) Property held by a governmental subdivision of the state under a conditional use
deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue on or
after January 1, 2007, may be acquired by that governmental subdivision after 15 years
from the date of the conveyance if the commissioner determines upon written application
from the subdivision that the subdivision has in fact put the property to the authorized
public use for which it was conveyed and the subdivision has made a finding that it has
no current plans to change the use of the lands. Before conveying the property, the
commissioner shall inquire whether the county board where the land is located objects to a
conveyance of the property to the subdivision without conditions and without further act
by or obligation of the subdivision. If the county does not object within 60 days, and the
commissioner makes a favorable determination, the commissioner shall issue a quit claim
deed on behalf of the state unconditionally conveying the property to the governmental
subdivision. For purposes of this paragraph, demonstration of an intended future use
for the authorized public use in a formal plan of the governmental subdivision does not
constitute use for that authorized public use.
new text end

new text begin (c) Property held by a governmental subdivision of the state under a conditional
use deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue
before January 1, 2007, is released from the use restriction and possibility of reversion on
January 1, 2022, if the county board records a resolution describing the land and citing
this paragraph. The county board may authorize the county treasurer to deduct the amount
of the recording fees from future settlements of property taxes to the subdivision.
new text end

new text begin (d) All property conveyed under a conditional use deed executed under subdivision
1a, paragraph (e), by the commissioner of revenue is released from the use restriction and
reverter and any use restriction or reverter for which no declaration of reversion has been
recorded with the county recorder or registrar of titles, as appropriate, is nullified on the
later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or
(3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens
related to the appeal is recorded in the office of the county recorder or registrar of titles, as
appropriate, before January 1, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 6.

Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
to read:

new text begin Subd. 1g. new text end

new text begin Conditional use deed fees. new text end

new text begin (a) A governmental subdivision of the state
applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee
of $250 to the commissioner of revenue along with the application. If the application is
denied, the commissioner shall refund $150 of the application fee.
new text end

new text begin (b) The proceeds from the fees must be deposited in a Department of Revenue
conditional use deed revolving fund. The sums deposited into the revolving fund are
appropriated to the commissioner of revenue for the purpose of making the refunds
described in this subdivision, and administering conditional use deed laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications received by the
commissioner after June 30, 2010.
new text end

Sec. 7.

Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
to read:

new text begin Subd. 1h. new text end

new text begin Conveyance; form. new text end

new text begin The instruments of conveyance executed and issued
by the commissioner of revenue under subdivision 1a, paragraphs (c), (d), (e), (f), (g),
and (h), and subdivision 1d, paragraph (b), must be on a form approved by the attorney
general and are prima facie evidence of the facts stated in them and that the execution and
issuance of the conveyance complies with the applicable laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for deeds executed by the
commissioner of revenue after June 30, 2010.
new text end

Sec. 8.

Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:

Subd. 2.

Conservation lands; county board supervision.

new text begin (a) new text end Lands classified as
conservation lands deleted text begin , unless reclassified as nonconservation lands, sold to a governmental
subdivision of the state, designated as lands primarily suitable for forest production and
sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
herein provided, will deleted text end new text begin must new text end be held under the supervision of the county board of the county
within which deleted text begin such deleted text end new text begin the new text end parcels lie deleted text begin . deleted text end new text begin and must not be conveyed or sold unless the lands are:
new text end

deleted text begin The county board may, by resolution duly adopted, declare lands classified as
conservation lands as primarily suitable for timber production and as lands which should
be placed in private ownership for such purposes. If such action be approved by the
commissioner of natural resources, the lands so designated, or any part thereof, may be
sold by the county board in the same manner as provided for the sale of lands classified as
nonconservation lands. Such county action and the approval of the commissioner shall be
limited to lands lying within areas zoned for restricted uses under the provisions of Laws
1939, chapter 340, or any amendments thereof.
deleted text end

new text begin (1) reclassified as nonconservation lands;
new text end

new text begin (2) conveyed to a governmental subdivision of the state under subdivision 1a;
new text end

new text begin (3) released from the trust in favor of the taxing districts as provided in paragraph
(b); or
new text end

new text begin (4) conveyed or sold under the authority of another general or special law.
new text end

new text begin (b) new text end The county board may, by resolution duly adopted, resolve that certain lands
classified as conservation lands shall be devoted to conservation uses and may submit
deleted text begin such deleted text end new text begin a new text end resolution to the commissioner of natural resources. If, upon investigation,
the commissioner of natural resources determines that the lands covered by deleted text begin such deleted text end new text begin the new text end
resolution, or any part thereof, can be managed and developed for conservation purposes,
the commissioner shall make a certificate describing the lands and reciting the acceptance
thereof on behalf of the state deleted text begin for such purposes deleted text end . The commissioner shall transmit the
certificate to the county auditor, who shall note the same upon the auditor's records and
record the same with the county recorder. The title to all lands so accepted shall be held
by the state free from any trust in favor of any and all taxing districts and deleted text begin such deleted text end new text begin the new text end lands
shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
parks, game refuges, controlled game management areas, public shooting grounds, or
other public recreational or conservation uses, and managed, controlled, and regulated
deleted text begin for such purposes deleted text end under the jurisdiction of the commissioner of natural resources and
the divisions of the department.

new text begin (c) All proceeds derived from the sale of timber, lease of crops of hay, or other
revenue from lands under the jurisdiction of the commissioner of natural resources shall
be credited to the general fund of the state.
new text end

deleted text begin In case deleted text end new text begin (d) If new text end the commissioner of natural resources deleted text begin shall determine deleted text end new text begin determines new text end that
any tract of land deleted text begin so held deleted text end new text begin acquired new text end by the state new text begin under paragraph (b) new text end and situated within or
adjacent to the boundaries of any governmental subdivision of the state is suitable for use
by deleted text begin such deleted text end new text begin the new text end subdivision for any authorized public purpose, the commissioner may convey
deleted text begin such deleted text end new text begin the new text end tract by deed in the name of the state to deleted text begin such deleted text end new text begin the new text end subdivision upon the filing
with the commissioner of a resolution adopted by a majority vote of all the members
of the governing body thereof, stating the purpose for which the land is desired. The
deed of conveyance shall be upon a form approved by the attorney general new text begin and must be
new text end conditioned upon continued use for the purpose stated in the resolution. deleted text begin All proceeds
derived from the sale of timber, lease of hay stumpage, or other revenue from such
lands under the jurisdiction of the natural resources commissioner shall be paid into the
general fund of the state.
deleted text end

new text begin (e) new text end The county auditor, with the approval of the county board, may lease conservation
lands remaining under the deleted text begin jurisdiction deleted text end new text begin supervision new text end of the county board and sell timber
and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
therefrom shall be distributed in the same manner as provided in section 282.04.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 9.

Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:

Subd. 3.

Nonconservation lands; appraisal and sale.

new text begin (a) new text end All parcels of land
classified as nonconservation, except those which may be reserved, shall be sold as
provided, if it is determined, by the county board of the county in which the parcels lie,
that it is advisable to do so, having in mind their accessibility, their proximity to existing
public improvements, and the effect of their sale and occupancy on the public burdens.
Any parcels of land proposed to be sold shall be first appraised by the county board of
the county in which the parcels lie. The parcels may be reappraised whenever the county
board deems it necessary to carry out the intent of sections 282.01 to 282.13.

new text begin (b) new text end In an appraisal the value of the land and any standing timber on it shall be
separately determined. No parcel of land containing any standing timber may be sold until
the appraised value of the timber on it and the sale of the land have been approved by the
commissioner of natural resources. The commissioner shall base review of a proposed
sale on the policy and considerations specified in subdivision 1. The decision of the
commissioner shall be in writing and shall state the reasons for it. The commissioner's
decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
does not apply. The county may appeal the decision of the commissioner in accordance
with chapter 14.

new text begin (c) new text end In any county in which a state forest or any part of it is located, the county
auditor shall submit to the commissioner at least 60 days before the first publication of the
list of lands to be offered for sale a list of all lands included on the list which are situated
outside of any incorporated municipality. If, at any time before the opening of the sale, the
commissioner notifies the county auditor in writing that there is standing timber on any
parcel of deleted text begin such deleted text end land, the parcel shall not be sold unless the requirements of this section
respecting the separate appraisal of the timber and the approval of the appraisal by the
commissioner have been complied with. The commissioner may waive the requirement
of the 60-day notice as to any parcel of land which has been examined and the timber
value approved as required by this section.

new text begin (d) new text end If any public improvement is made by a municipality after any parcel of land has
been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
whole or in part against the property benefited by it, the clerk of the municipality shall
certify to the county auditor, immediately upon the determination of the assessments for
the improvement, the total amount that would have been assessed against the parcel of land
if it had been subject to assessment; or if the public improvement is made, petitioned for,
ordered in or assessed, whether the improvement is completed in whole or in part, at any
time between the appraisal and the sale of the parcel of land, the cost of the improvement
shall be included as a separate item and added to the appraised value of the parcel of land
at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
from lien for the special benefit conferred upon it by reason of the public improvement
until the cost of it, including penalties, if any, is paid. The county board shall determine
the amount, if any, by which the value of the parcel was enhanced by the improvement and
include the amount as a separate item in fixing the appraised value for the purpose of sale.
deleted text begin In classifying, appraising, and selling the lands, the county board may designate the tracts
as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
smaller units or for the grouping of several tracts into one tract when the subdivision or
grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
tract must be classified and appraised as such before being offered for sale. If any such
lands have once been classified, the board of county commissioners, in its discretion, may,
by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 10.

Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:

Subd. 4.

Sale: method, requirements, effects.

The sale new text begin authorized under
subdivision 3 new text end must be conducted by the county auditor at the county seat of the county in
which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
be conducted in any county facility within the county. new text begin The sale must not be for less than
the appraised value except as provided in subdivision 7a. new text end The parcels must be sold for
cash only deleted text begin and at not less than the appraised value deleted text end , unless the county board of the county
has adopted a resolution providing for their sale on terms, in which event the resolution
controls with respect to the sale. When the sale is made on terms other than for cash only
(1) a payment of at least ten percent of the purchase price must be made at the time of
purchase, and the balance must be paid in no more than ten equal annual installments, or
(2) the payments must be made in accordance with county board policy, but in no event
may the board require more than 12 installments annually, and the contract term must not
be for more than ten years. Standing timber or timber products must not be removed from
these lands until an amount equal to the appraised value of all standing timber or timber
products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
land bearing standing timber or timber products is sold at public auction for more than
the appraised value, the amount bid in excess of the appraised value must be allocated
between the land and the timber in proportion to their respective appraised values. In that
case, standing timber or timber products must not be removed from the land until the
amount of the excess bid allocated to timber or timber products has been paid in addition
to the appraised value of the land. The purchaser is entitled to immediate possession,
subject to the provisions of any existing valid lease made in behalf of the state.

For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
of the purchase price for sales occurring after December 31, 1990, is subject to interest
at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to
change each year on the unpaid balance in the manner provided for rate changes in section
549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract
balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 11.

Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:

Subd. 7.

County sales; notice, purchase price, disposition.

The sale must
commence at the time determined by the county board of the county in which the parcels
are located. The county auditor shall offer the parcels of land in order in which they
appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
less than the appraised value, until all of the parcels of land have been offered. Then the
county auditor shall sell any remaining parcels to anyone offering to pay the appraised
value, except that if the person could have repurchased a parcel of property under section
282.012 or 282.241, that person may not purchase that same parcel of property at the sale
under this subdivision for a purchase price less than the sum of all taxes, assessments,
penalties, interest, and costs due at the time of forfeiture computed under section 282.251,
and any special assessments for improvements certified as of the date of sale. The sale
must continue until all the parcels are sold or until the county board orders a reappraisal or
withdraws any or all of the parcels from sale. The list of lands may be added to and the
added lands may be sold at any time by publishing the descriptions and appraised values.
The added lands must be: (1) parcels of land that have become forfeited and classified
as nonconservation since the commencement of any prior sale; (2) parcels new text begin classified as
nonconservation new text end that have been reappraised; (3) parcels that have been reclassified as
nonconservation; or (4) other parcels that are subject to sale but were omitted from the
existing list for any reason. The descriptions and appraised values must be published in
the same manner as provided for the publication of the original list. Parcels added to the
list must first be offered for sale to the highest bidder before they are sold at appraised
value. All parcels of land not offered for immediate sale, as well as parcels that are offered
and not immediately sold, continue to be held in trust by the state for the taxing districts
interested in each of the parcels, under the supervision of the county board. Those parcels
may be used for public purposes until sold, as directed by the county board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 12.

Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:

Subd. 7a.

City sales; alternate procedures.

Land located in a home rule charter
or statutory city, or in a town which cannot be improved because of noncompliance with
local ordinances regarding minimum area, shape, frontage or access may be sold by the
county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
will encourage the approval of sale of the land by the city or town and promote its return
to the tax rolls. If the physical characteristics of the land indicate that its highest and best
use will be achieved by combining it with an adjoining parcel and the city or town has not
adopted a local ordinance governing minimum area, shape, frontage, or access, the land
may also be sold pursuant to this subdivision. If the property consists of an undivided
interest in land or land and improvements, the property may also be sold to the other
owners under this subdivision. The sale of land pursuant to this subdivision shall be
subject to any conditions imposed by the county board pursuant to section 282.03. The
governing body of the city or town may recommend to the county board conditions to be
imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
another means of sale. The land shall be sold to the highest bidder deleted text begin but in no event shall the
land deleted text end new text begin and may new text end be sold for less than its appraised value. All owners of land adjoining the
land to be sold shall be given a written notice at least 30 days prior to the sale.

This subdivision shall be liberally construed to encourage the sale and utilization
of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
compliance with land use ordinances.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 13.

Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Notice; public hearing for use change. new text end

new text begin If a governmental subdivision
that acquired a parcel for public use under this section later determines to change the use,
it must hold a public hearing on the proposed use change. The governmental subdivision
must mail written notice of the proposed use change and the public hearing to each owner
of property that is within 400 feet of the parcel at least ten days and no more than 60 days
before it holds the hearing. The notice must identify: (1) the parcel, (2) its current use,
(3) the proposed use, (4) the date, time, and place of the public hearing, and (5) where
to submit written comments on the proposal and that the public is invited to testify at
the public hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, and applies to a change
in use of a parcel acquired under Minnesota Statutes, section 282.01, whether acquired by
the governmental subdivision before or after the effective date of this section.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76, new text end new text begin
are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end