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

                             CHAPTER 73-H.F.No. 859 
                  An act relating to natural resources; modifying 
                  provisions for the sale of state timber; providing 
                  criminal penalties; amending Minnesota Statutes 2002, 
                  sections 90.01, by adding a subdivision; 90.101; 
                  90.121; 90.14; 90.151, subdivisions 1, 2; 90.161, 
                  subdivision 1; 90.173; 90.191, subdivisions 3, 4; 
                  90.251, subdivision 1; proposing coding for new law in 
                  Minnesota Statutes, chapter 90. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 90.01, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [FORESTRY ADMINISTRATIVE AREA.] "Forestry 
        administrative area" means the smallest geographic subdivision 
        of the state designated by the commissioner for the purposes of 
        supervising forestry employees and directing practices and 
        programs. 
           Sec. 2.  Minnesota Statutes 2002, section 90.101, is 
        amended to read: 
           90.101 [TIMBER SOLD AT PUBLIC AUCTION, MAXIMUM LOTS OF 
        6,000 CORDS.] 
           Subdivision 1.  [SALE REQUIREMENTS.] The commissioner may 
        sell the timber on any tract of state land in lots not exceeding 
        6,000 cords in volume and may determine the number of sections 
        or fractional sections of land to be included in the permit area 
        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 responsible 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 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.  Sales may include 
        tracts in more than one contiguous county or forestry 
        administrative area and shall be held either in the county or 
        forestry administrative area in which the tract is located or in 
        an adjacent county which or forestry administrative area that is 
        nearest the tract offered for sale or that is most accessible to 
        potential bidders.  In adjoining counties or forestry 
        administrative areas, sales may not be held less than two hours 
        apart. 
           Subd. 2.  [SALE LIST AND NOTICE.] 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 estimated 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 estimated 
        quantity of timber of doubtful market value and the appraised 
        price of each kind of such timber within the sale permit 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 in writing of an 
        intent to cut such timber.  No description shall be added after 
        the list is posted and no timber shall be sold from land not 
        described 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 forest office or other public 
        facility most accessible to potential bidders at least 30 days 
        prior to the date of sale.  The commissioner shall cause a 
        notice to be published 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 
        other published or posted notice as the commissioner deems 
        proper to reach prospective bidders. 
           Sec. 3.  Minnesota Statutes 2002, section 90.121, is 
        amended to read: 
           90.121 [INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 
        CORDS.] 
           (a) The commissioner may sell the timber on any tract of 
        state land in lots not exceeding 3,000 cords in volume, 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 the commissioner shall be at the forest office or 
        other public facility most accessible to potential bidders or 
        close to where the tract is located offer all tracts authorized 
        for sale by this section separately from the sale of tracts of 
        state timber made pursuant to section 90.101; 
           (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 at 
        public auction may be offered for private sale for a period of 
        no more than six months for purchase by as authorized by section 
        90.101, subdivision 1, to persons eligible under this section at 
        the appraised value; and 
           (5) the bond or deposit required pursuant to section 90.161 
        or 90.173 shall be given or deposited and approved as to form 
        and execution by the commissioner before any cutting begins; 
           (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; and 
           (7) (3) no sale may be made to a person having more than 20 
        employees.  
           (b) 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 3,000 cords or less. 
           Sec. 4.  Minnesota Statutes 2002, 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.  The sale shall be made 
        to the party person who (1) shall bid bids the highest price for 
        all the several kinds of timber as advertised, or (2) if unsold 
        at public auction, to the party person who purchases at any 
        subsequent sale authorized under section 90.101, subdivision 1.  
        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 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 the bid 
        approval and upon 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 or 90.121.  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. 
           Sec. 5.  Minnesota Statutes 2002, section 90.151, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ISSUANCE; EXPIRATION.] (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 as 
        designated for cutting in the report of the state appraiser, 
        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.  If a permit is not signed by the 
        purchaser within 60 days from the date of purchase, the permit 
        cancels and the down payment for timber forfeits to the state. 
           (b) The permit shall expire no later than 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.  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. 
           (d) No permit shall be issued to any person other than the 
        purchaser in whose name the bid was made.  
           Sec. 6.  Minnesota Statutes 2002, section 90.151, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERMIT REQUIREMENTS.] The permit shall state the 
        amount of timber estimated for cutting on the land, the 
        estimated value thereof, and the price at which it is sold per 
        thousand feet, per cord, per piece, or by whatever description 
        sold, and shall specify the identification marks to be used 
        which shall be M I N unless otherwise specified that all 
        landings of cut products shall be legibly marked with the 
        assigned permit number.  The permit shall provide that the 
        permit holder shall plainly place the specified marks upon a 
        sufficient number of pieces to adequately identify the 
        timber for the continuous identification of the cut timber from 
        the time of cutting until delivered delivery to the consumer.  
        The permit shall make provisions for the continuous 
        identification of the cut timber.  It shall provide that in case 
        of any failure to mark continuously identify the timber as 
        specified in the permit, the state has the right to take 
        possession of the cut timber constitutes trespass.  
           Sec. 7.  Minnesota Statutes 2002, section 90.161, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BOND REQUIRED.] Except as otherwise 
        provided by law, the purchaser of any state timber, before any 
        timber permit shall become becomes effective for any purpose, 
        shall 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 and the appraisal report 
        as to quantity, less the amount of any payment payments pursuant 
        to section sections 90.14 and 90.163.  The bond shall be 
        conditioned upon the faithful performance by the purchaser and 
        successors in interest of all terms and conditions of the permit 
        and all requirements of law in respect to timber sales.  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 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 payments 
        pursuant to section sections 90.14 and 90.163.  The commissioner 
        may credit the refund to any other permit held by the same 
        permit holder if the permit is delinquent as provided in section 
        90.181, subdivision 2, or may credit the refund to any other 
        permit to which the permit holder requests that it be credited.  
           Sec. 8.  [90.163] [PERFORMANCE DEPOSIT OPTION.] 
           In lieu of the bond or cash deposit equal to the value of 
        all timber covered by the permit as required by section 90.161 
        or 90.173, a purchaser of any state timber may pay to the 
        commissioner a performance deposit of ten percent of the 
        appraised value of the permit for the express purpose of 
        entering on the land to clear building sites or logging roads in 
        advance of cutting state timber.  No cutting of state timber, 
        except that incidental to the clearing of building sites or 
        logging roads, is allowed until the purchaser has met all of the 
        requirements of section 90.161 or 90.173. 
           Sec. 9.  Minnesota Statutes 2002, section 90.173, is 
        amended to read: 
           90.173 [PURCHASER'S OR ASSIGNEE'S CASH DEPOSIT IN LIEU OF 
        BOND.] 
           (a) In lieu of filing the bond required by section 90.161 
        or 90.171, as security for the issuance or assignment of a 
        timber permit the person required to file the bond may deposit 
        with the state treasurer cash, a certified check, a cashier's 
        check, a personal check, a postal, bank, or express money order, 
        assignable bonds or notes of the United States, or an assignment 
        of a bank savings account or investment certificate or an 
        irrevocable bank letter of credit, in the same amount as would 
        be required for a bond.  If securities listed in this section 
        are deposited, the par value of the securities shall be not less 
        than the amount required for the timber sale bond, and the 
        person required to file the timber sale bond shall submit an 
        agreement authorizing the commissioner to sell or otherwise take 
        possession of the security in the event of default under the 
        timber sale.  All of the conditions of the timber sale bond 
        shall equally apply to the deposit with the state treasurer.  In 
        the event of a default the state may take from the deposit the 
        sum of money to which it is entitled; the remainder, if any, 
        shall be returned to the person making the deposit.  When cash 
        is deposited for a bond, it shall be applied to the amount due 
        when a statement is prepared and transmitted to the permit 
        holder pursuant to section 90.181.  Any balance due to the state 
        shall be shown on the statement and shall be paid as provided in 
        section 90.181.  Any amount of the deposit in excess of the 
        amount determined to be due pursuant to section 90.181 shall be 
        returned to the permit holder when a final statement is 
        transmitted pursuant to that section.  All or part of a cash 
        bond may be withheld from application to an amount due on a 
        nonfinal statement if it appears that the total amount due on 
        the permit will exceed the bid price.  
           (b) If an irrevocable bank letter of credit is provided as 
        security under paragraph (a), at the written request of the 
        permittee the state shall annually allow the amount of the bank 
        letter of credit to be reduced by an amount proportionate to the 
        value of timber that has been harvested and for which the state 
        has received payment under the timber permit.  The remaining 
        amount of the bank letter of credit after a reduction under this 
        paragraph must not be less than the value of the timber 
        remaining to be harvested under the timber permit. 
           (c) If cash; a certified check; a cashier's check; a 
        personal check; or a postal, bank, or express money order is 
        provided as security under paragraph (a) and no cutting of state 
        timber has taken place on the permit, the commissioner may 
        credit the security provided, less any deposit required by 
        sections 90.14 and 90.163, to any other permit to which the 
        permit holder requests in writing that it be credited. 
           Sec. 10.  Minnesota Statutes 2002, section 90.191, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SCALING; PURCHASER RESPONSIBILITIES; ADDITION OF 
        UNSOLD TIMBER.] All timber products, except as specified by the 
        commissioner of natural resources, cut under the provisions of 
        this section, shall be scaled and the final settlement for the 
        timber cut shall be made on this scale. The purchaser shall 
        dispose of slashings according to law, shall be liable under 
        this chapter in trespass for cutting timber held in reserve or 
        unnecessarily injuring any timber not included within the sale 
        under this section, and shall be otherwise subject to all the 
        laws governing the sale and removal of state timber, so far as 
        applicable except as provided under subdivision 4. 
           The permit shall provide that should the commissioner find 
        it advisable to salvage or remove for proper forest management 
        certain unsold timber within the permit area, this timber, with 
        the written consent of the permit holder, may be added at an 
        appraised price to the timber sold. 
           Sec. 11.  Minnesota Statutes 2002, section 90.191, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TIMBER MARKINGS.] In lieu of the placing of the 
        marks M I N on cut products as prescribed under section 90.151, 
        subdivision 2, The permit shall state that all landings of cut 
        products must be legibly marked with the name of the permit 
        holder and the assigned permit number.  The permit shall provide 
        for the continuous identification of the cut timber from the 
        time of cutting until delivery to the consumer.  The permit 
        shall provide that failure to continuously identify the timber 
        as specified in the permit constitutes trespass. 
           Sec. 12.  Minnesota Statutes 2002, section 90.251, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCALING AND CHECK SCALING PROCEDURES AND 
        REQUIREMENTS; PENALTY.] The commissioner shall institute scaling 
        and check scaling procedures for state timber sufficient to 
        protect the interest of the state.  This will include the 
        assignment of a trained timber scaling specialist in the 
        classified service to be responsible for check scaling and to 
        develop scaling and check scaling techniques and standards.  The 
        scaling and check scaling techniques and standards shall be 
        approved by the commissioner.  Check scaling shall also be 
        accomplished by other forestry supervisors with reports 
        forwarded to the timber scaling specialist.  The timber scaling 
        specialist shall report any scaling deficiencies or trespass to 
        the commissioner.  Any deficiencies requiring the attention of 
        the attorney general or state executive council will be 
        forwarded to these offices by the commissioner.  All timber cut 
        on lands in the charge of the commissioner, except as expressly 
        provided otherwise by the commissioner shall be scaled.  No 
        timber may be scaled until it is first marked with M I N or as 
        otherwise properly identified as specified in the permit.  All 
        scaling shall be done upon the land from which the timber was 
        cut; provided that the state appraiser, subject to the approval 
        of the commissioner, may designate in writing to a permit holder 
        another location where such timber may be scaled, counted or 
        measured; all logs individually scaled shall be numbered 
        consecutively, and the number of each entered upon the minutes 
        of the scaler; allowance shall be made for defects to make the 
        timber equivalent to merchantable timber.  No state timber shall 
        be removed from the land where it was cut until it has been so 
        scaled or counted except as herein provided.  Any person 
        removing timber from the land where it was cut, or from the 
        place designated, before it has been so scaled or counted shall 
        be is guilty of theft under section 609.52 trespass. 
           Presented to the governor May 19, 2003 
           Signed by the governor May 22, 2003, 7:55 p.m.

Official Publication of the State of Minnesota Revisor of Statutes