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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 551-H.F.No. 2410 
                  An act relating to natural resources; sale of native 
                  tree seed and tree planting stock; terms and 
                  conditions governing the leasing of state timber 
                  lands; amending Minnesota Statutes 1992, sections 
                  89.36, subdivision 3; 89.37, by adding a subdivision; 
                  90.101, subdivision 2; 90.151, subdivision 1; 90.161, 
                  subdivisions 1 and 2; 90.191, subdivision 2; and 
                  90.193; Minnesota Statutes 1993 Supplement, sections 
                  90.101, subdivision 1; and 90.121; repealing Minnesota 
                  Statutes 1992, section 90.151, subdivisions 13 and 14. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1992, section 89.36, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SALE OR EXCHANGE OF STOCK.] In carrying out the 
        provisions of sections 89.35 to 89.39, the commissioner may sell 
        to or exchange surplus tree planting stock and seed with other 
        states or the federal government for the following purposes: 
           (1) to acquire tree planting stock of a species which is in 
        short supply in the commissioner's inventory; 
           (2) to acquire tree planting stock of a species not grown 
        by the commissioner; 
           (3) to acquire tree planting stock genetically superior to 
        that grown by the commissioner; and 
           (4) to utilize tree planting stock or seed not needed for 
        the reforestation program in the state.  
           The commissioner's authority to acquire tree planting stock 
        under this subdivision is limited to not more than five tree 
        species per year.  The minimum quantity of any species which may 
        be acquired is 20,000 trees.  
           Sec. 2.  Minnesota Statutes 1992, section 89.37, is amended 
        by adding a subdivision to read: 
           Subd. 3b.  [SALES TO NURSERIES.] To promote the 
        availability and use of native plant material, the commissioner 
        may sell native tree seed to licensed, private Minnesota 
        nurseries when supplies of seed from geographically adapted 
        sources are not available from private Minnesota seed dealers.  
        The commissioner may also sell native trees and shrubs in lots 
        of ten or more to nonprofit groups and local units of government.
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        90.101, subdivision 1, is amended to read: 
           Subdivision 1.  The commissioner may sell the timber on any 
        tract of state land in lots not exceeding $50,000 in appraised 
        value and may determine the number of sections or fractional 
        sections of land to be covered by any one permit issued to the 
        purchaser of timber on state lands, or in any one contract or 
        other instrument relating thereto.  No timber shall be sold, 
        except (1) to the highest bidder at public auction, or (2) if 
        unsold at public auction the commissioner may offer the timber 
        for private sale for a period of no more than 90 days six months 
        after the public auction to any person who pays the appraised 
        value for the timber.  The minimum price shall be the appraised 
        value as fixed by the report of the state appraiser.  All Sales 
        may include tracts in more than one contiguous county and shall 
        be held either in the county in which the tract is located or in 
        an adjacent county which is nearest the tract offered for sale.  
        In adjoining counties, sales may not be held less than two hours 
        apart. 
           Sec. 4.  Minnesota Statutes 1992, section 90.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  At least 30 days before the date of sale, the 
        commissioner shall compile a list containing a description of 
        each tract of land upon which any timber to be offered is 
        situated and a statement of the quantity of timber and of the 
        appraised price of each kind of timber thereon as shown by the 
        report of the state appraiser.  The commissioner may also list 
        the quantity of timber of doubtful market value and the 
        appraised price of each kind of such timber located in other 
        timber types within the sale area that may be cut at the 
        discretion of the purchaser.  Optional timber will not be 
        considered a part of the sale contract until the permit holder 
        has advised the commissioner of an intent to cut such timber.  
        No description shall be added after the list is posted as herein 
        provided and no timber shall be sold from land not described 
        therein in the list.  Copies of the list shall be furnished to 
        all interested applicants.  A copy of the list shall be 
        conspicuously posted in the office of the commissioner and in 
        the office of the auditor of the county in which the lands are 
        situated forest office or other public facility most accessible 
        to potential bidders at least 30 days prior to the date of sale, 
        and extra copies of the list shall be furnished to the county 
        auditor for distribution to applicants.  The commissioner shall 
        cause a notice to be published for three consecutive weeks once 
        not less than one week before the date of sale in a legal 
        newspaper in the county or counties where the land is situated.  
        The notice shall state the time and place of the sale and the 
        location at which further information regarding the sale may be 
        obtained.  The commissioner may give such other published or 
        posted notice as the commissioner deems proper to reach 
        prospective bidders. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        90.121, is amended to read: 
           90.121 [INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 
        $15,000.] 
           The commissioner may sell the timber on any tract of state 
        land in lots not exceeding $15,000 in appraised value, in the 
        same manner as timber sold at public auction under section 
        90.101, and related laws, subject to the following special 
        exceptions and limitations:  
           (1) sales shall be at the forest office or other public 
        facility most accessible to potential bidders or close to where 
        the tract is located; 
           (2) the commissioner's list describing the tract, quantity 
        of timber, and appraised price shall be compiled not less than 
        30 days before the date of sale and a copy of the list posted 
        not less than 30 days before the date of the sale at the 
        location designated for the sale; 
           (3) notice of the sale shall be published once, not less 
        than one week before the date of the sale; 
           (4) no bidder may be awarded more than 25 percent of the 
        total tracts offered at the first round of bidding unless fewer 
        than four tracts are offered, in which case not more than one 
        tract shall be awarded to one bidder.  Any tract not sold shall 
        be available may be offered for sale for a period of 90 days six 
        months for purchase by persons eligible under this section at 
        the appraised value; 
           (5) the bond or deposit required pursuant to section 90.161 
        or 90.173 shall be given or deposited before any cutting begins 
        or not later than nine months 120 days after the date of sale 
        purchase, whichever is earlier, provided that the commissioner 
        may extend the time for furnishing the bond or deposit for not 
        more than 30 additional days for good cause shown; 
           (6) in lieu of the placing of the marks M I N on cut 
        products as prescribed under section 90.151, subdivision 2, all 
        landings of cut products shall be legibly marked with the name 
        of the permit holder and the assigned permit number; 
           (7) no person may hold more than six permits issued under 
        this section and no sale may be made to a person holding six 
        permits which are still in effect or to a person having more 
        than 20 employees; 
           (8) the permit may not exceed one year three years in 
        duration; 
           (9) if the purchaser for good and sufficient reason is 
        unable to cut the timber within the one year permit period, the 
        commissioner may grant one extension for a period of up to one 
        year from the date of expiration of the original permit without 
        interest, and one additional extension of one year with interest 
        at the rate in effect under section 549.09 at the time the 
        extension is granted; 
           (10) if all cut timber, equipment, and buildings, are not 
        removed at the end of any 120-day extension period which the 
        commissioner may grant for removal, the commissioner may grant a 
        second period of time not to exceed 120 days for the removal of 
        cut timber, equipment, and buildings upon receipt of a request 
        by the permit holder for hardship reasons only.  
           The auction sale procedure set forth in this section 
        constitutes an additional alternative timber sale procedure 
        available to the commissioner and is not intended to replace 
        other authority possessed by the commissioner to sell timber in 
        lots of $15,000 or less. 
           Sec. 6.  Minnesota Statutes 1992, section 90.151, 
        subdivision 1, is amended to read: 
           Subdivision 1.  (a) Following receipt of the down payment 
        for state timber sold at public auction, the commissioner shall 
        issue a numbered permit to the purchaser, in a form approved by 
        the attorney general, by the terms of which the purchaser shall 
        be authorized to enter upon the land, and to cut and remove the 
        timber therein described, according to the provisions of this 
        chapter.  The permit shall be correctly dated and executed by 
        the commissioner or agent and signed by the purchaser.  
           (b) The permit shall expire no later than three five years 
        after the date of sale as the commissioner shall specify, and 
        the timber shall be cut within the time specified therein.  All 
        cut timber, equipment, and buildings not removed from the land 
        within 90 days after expiration of the permit shall become the 
        property of the state.  
           (c) The commissioner may grant an additional period of time 
        not to exceed 120 days for the removal of cut timber, equipment, 
        and buildings upon receipt of such request by the permit holder 
        for good and sufficient reasons.  No permit shall be issued to 
        any person other than the purchaser in whose name the bid was 
        made.  
           Sec. 7.  Minnesota Statutes 1992, section 90.161, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Except as otherwise provided by law, the 
        purchaser of any state timber, before any timber permit shall 
        become effective for any purpose, shall within 90 120 days from 
        the date of purchase give a good and valid bond to the state of 
        Minnesota equal to the value of all timber covered or to be 
        covered by the permit, as shown by the sale price bid therefor 
        and the appraisal report thereof as to quantity, less the amount 
        of any payment pursuant to section 90.14, which.  The bond shall 
        be conditioned upon the faithful performance by the purchaser 
        and successors in interest of all the terms and conditions of 
        the permit and all requirements of law in respect to such timber 
        sales; and.  The bond shall be approved in writing by the 
        commissioner and filed for record in the commissioner's office.  
        In the alternative to cash and bond as provided above 
        requirements, but upon the same conditions, a purchaser may post 
        bond for 100 percent of the purchase price and request refund of 
        the amount of any payment pursuant to section 90.14. 
           Sec. 8.  Minnesota Statutes 1992, section 90.161, 
        subdivision 2, is amended to read: 
           Subd. 2.  If such bond is not furnished within 90 120 days 
        from the date of purchase, the down payment for such timber 
        shall forfeit to the state, except that the commissioner may 
        grant an extension of time for good and sufficient reason, 
        provided that such any extension of time shall not exceed 30 
        days.  
           Sec. 9.  Minnesota Statutes 1992, section 90.191, 
        subdivision 2, is amended to read: 
           Subd. 2.  Upon receipt of payment for the full appraised 
        value, the commissioner may issue a permit to cut such timber 
        within one year two years from the date of sale under such any 
        supervision and provisions as the commissioner shall deem deems 
        advisable.  If the purchaser for good and sufficient reason is 
        unable to cut the timber within the one-year period, an 
        extension of time may be granted by the commissioner.  Only one 
        extension shall be granted and the extension shall not exceed 
        one year.  All cut timber, equipment, and buildings not removed 
        from the land within 90 days after expiration of the permit 
        shall become the property of the state.  The commissioner of 
        natural resources may grant an additional period of time not to 
        exceed 120 days for the removal of cut timber, equipment, and 
        buildings upon receipt of such a request by the permit holder 
        for good and sufficient reasons.  The commissioner may grant a 
        second period of time not to exceed 120 days for the removal of 
        cut timber, equipment, and buildings upon receipt of such a 
        request by the permit holder for hardship reasons only. 
           Sec. 10.  Minnesota Statutes 1992, section 90.193, is 
        amended to read: 
           90.193 [EXTENSION OF TIMBER PERMITS.] 
           The commissioner may, in the case of an exceptional 
        circumstance beyond the control of the timber permit holder 
        which makes it unreasonable, impractical, and not feasible to 
        complete cutting and removal under the permit within the time 
        allowed, grant an extension of one year in addition to those 
        provided in sections 90.121, 90.151, and 90.191.  A request for 
        the extension must be received by the commissioner 15 days 
        before the permit expires.  The request must state the reason 
        the extension is necessary and be signed by the permit holder. 
        The value of the timber remaining to be cut will be recalculated 
        using current stumpage rates.  Any timber cut during the period 
        of extension or remaining uncut at the expiration of the 
        extension shall be billed for at the stumpage rates determined 
        at the time of extension provided that in no event shall 
        stumpage rates be less than those in effect at the time of the 
        original sale.  An interest rate of eight percent will be 
        charged as provided in section 90.151 for the period of 
        extension.  
           Sec. 11.  [TEMPORARY PROVISION.] 
           Unless a permit specifically prohibits granting of an 
        extension, permits issued before August 1, 1994, shall have the 
        same duration as those issued on or after that date under 
        sections 5, 6, and 9. 
           Sec. 12.  [REPEAL.] 
           Minnesota Statutes 1992, section 90.151, subdivisions 13 
        and 14, are repealed. 
           Presented to the governor May 2, 1994 
           Signed by the governor May 4, 1994, 3:15 p.m.