Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2003, Regular Session
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