Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 241-H.F.No. 2383
An act relating to natural resources; providing for
the disposition of certain timber sales receipts;
creating a forest management investment account;
modifying the forest resources Interagency Information
Cooperative; modifying the State Timber Act; modifying
provisions for timber sales on tax-forfeited land;
appropriating money; amending Minnesota Statutes 2002,
sections 84A.51, subdivision 2; 89.035; 89A.09,
subdivision 1; 90.02; 90.181, subdivision 2; 90.191,
subdivision 2, by adding a subdivision; 90.252;
282.04, subdivision 1; Minnesota Statutes 2003
Supplement, sections 90.101, subdivision 1; 90.14;
90.151, subdivision 1; Laws 2003, chapter 128, article
1, section 5, subdivision 4; proposing coding for new
law in Minnesota Statutes, chapter 89; repealing
Minnesota Statutes 2003 Supplement, section 90.191,
subdivisions 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2002, section 84A.51,
subdivision 2, is amended to read:
Subd. 2. [FUNDS TRANSFERRED; APPROPRIATED.] Money in any
fund established under section 84A.03, 84A.22, or 84A.32,
subdivision 2, is transferred to the consolidated account,
except as provided in subdivision 3. The money in the
consolidated account, or as much of it as necessary, is
appropriated for the purposes of sections 84A.52 and 84A.53. Of
any remaining balance, the amount derived from timber sales
receipts is transferred to the forest management investment
account and the amount derived from all other receipts is
transferred to the general fund.
[EFFECTIVE DATE.] This section is effective July 1, 2004.
Sec. 2. Minnesota Statutes 2002, section 89.035, is
amended to read:
89.035 [INCOME FROM STATE FOREST LANDS; DISPOSITION.]
All income which may be received from lands acquired by the
state heretofore or hereafter for state forest purposes by gift,
purchase or eminent domain and tax-forfeited lands to which the
county has relinquished its equity to the state for state forest
purposes shall be paid into the state treasury and credited to
the general fund as provided in this section, except where the
conveyance to and acceptance by the state of lands for state
forest purposes provides for other disposition of receipts. The
income derived from timber sales receipts shall be credited to
the forest management investment account and the amounts derived
from all other receipts shall be credited to the general fund.
[EFFECTIVE DATE.] This section is effective July 1, 2004.
Sec. 3. [89.039] [FOREST MANAGEMENT INVESTMENT ACCOUNT.]
Subdivision 1. [ACCOUNT ESTABLISHED; SOURCES.] The forest
management investment account is created in the natural
resources fund in the state treasury and money in the account
may be spent only for the purposes provided in subdivision 2.
The following revenue shall be deposited in the forest
management investment account:
(1) timber sales receipts transferred from the consolidated
conservation areas account as provided in section 84A.51,
subdivision 2;
(2) timber sales receipts from forest lands as provided in
section 89.035; and
(3) interest accruing from investment of the account.
Subd. 2. [PURPOSES OF ACCOUNT.] Subject to appropriation
by the legislature, money in the forest management investment
account may be spent by the Department of Natural Resources in
accordance with the forest resource management policy and plan
for any of the following purposes:
(1) reforestation and timber stand improvement, including
forest pest management;
(2) timber sales administration, contract marking of
commercial thinning sales, cultural resource reviews, and other
timber sales costs; and
(3) state forest road maintenance costs that exceed
appropriations under section 89.70.
[EFFECTIVE DATE.] This section is effective July 1, 2004.
Sec. 4. Minnesota Statutes 2002, section 89A.09,
subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] The commissioner dean of
the University of Minnesota, College of Natural Resources, shall
be encouraged to coordinate the establishment of an Interagency
Information Cooperative. Members of the cooperative must
include:
(1) the University of Minnesota, College of Natural
Resources;
(2) the University of Minnesota, Natural Resources Research
Institute;
(3) the department;
(2) (4) the Land Management Information Center;
(3) (5) the Minnesota Association of County Land
Commissioners;
(4) (6) the United States Forest Service; and
(5) (7) other organizations as deemed appropriate by the
commissioner members.
Sec. 5. Minnesota Statutes 2002, section 90.02, is amended
to read:
90.02 [CITATION, STATEMENT OF POLICY.]
This chapter may be cited as the State Timber Act.
It is the intent and desire of the Minnesota legislature to
provide equal opportunity for all segments of our society to
participate in the sale process; and attempt to prevent the
purchase or acquisition of excessive volumes of the state's
timber resources by any one individual or corporation.
The Department of Natural Resources is directed to enact
rules commissioner shall establish specific timber sale
allocation standards to reach this objective; including
provision for sale of all timber species by both the informal
and the auction sale each method of sale specified in this
chapter; and maintaining reasonable proportions of volume in
each method of sale. The standards shall be included in each
edition of the timber sales manual published by the
commissioner. The standards are not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply.
Sec. 6. Minnesota Statutes 2003 Supplement, section
90.101, subdivision 1, is amended to read:
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 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.
Sec. 7. Minnesota Statutes 2003 Supplement, 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 person who (1) bids the highest price for all the several
kinds of timber as advertised, or (2) if unsold at public
auction, to the 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 a down payment of
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 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. 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. 8. Minnesota Statutes 2003 Supplement, 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 required under section 90.14 or 90.191, 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 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 required under section 90.14 forfeits to the state.
(b) The permit shall expire no later than five years after
the date of sale as the commissioner shall specify or as
specified under section 90.191, 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. 9. Minnesota Statutes 2002, section 90.181,
subdivision 2, is amended to read:
Subd. 2. [DEFERRED PAYMENTS.] (a) If the amount of the
statement is not paid within 30 days of the date thereof, it
shall bear interest at the rate determined pursuant to section
16A.124, except that the purchaser shall not be required to pay
interest that totals $1 or less. If the amount is not paid
within 60 days, the commissioner shall place the account in the
hands of the attorney general commissioner of revenue according
to chapter 16D, who shall proceed to collect the same. When
deemed in the best interests of the state, the commissioner
shall take possession of the timber for which an amount is due
wherever it may be found and sell the same informally or at
public auction after giving reasonable notice.
(b) The proceeds of the sale shall be applied, first, to
the payment of the expenses of seizure and sale; and, second, to
the payment of the amount due for the timber, with interest; and
the surplus, if any, shall belong to the state; and, in case a
sufficient amount is not realized to pay these amounts in full,
the balance shall be collected by the attorney general. Neither
payment of the amount, nor the recovery of judgment therefor,
nor satisfaction of the judgment, nor the seizure and sale of
timber, shall release the sureties on any bond given pursuant to
this chapter, or preclude the state from afterwards claiming
that the timber was cut or removed contrary to law and
recovering damages for the trespass thereby committed, or from
prosecuting the offender criminally.
Sec. 10. Minnesota Statutes 2002, section 90.191,
subdivision 2, is amended to read:
Subd. 2. [TIME FRAME FOR CUTTING AND REMOVAL.] Upon
receipt of a down payment for the full appraised value, the
commissioner may issue a permit according to section 90.151 to
cut timber within the time period specified by the commissioner,
which shall not exceed two years from the date of sale under any
supervision and provisions the commissioner deems advisable.
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 may grant an
additional period of not to exceed 120 days for the removal of
cut timber, equipment, and buildings upon receipt of 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 a request by the permit holder for hardship
reasons only.
Sec. 11. Minnesota Statutes 2002, section 90.191, is
amended by adding a subdivision to read:
Subd. 5. [ADDITIONAL PROCEDURE.] The sale procedure under
this section is an additional alternative timber sale procedure
available to the commissioner and is not intended to replace
other authority of the commissioner to sell timber in lots of
500 cords or less.
Sec. 12. Minnesota Statutes 2002, section 90.252, is
amended to read:
90.252 [CONSUMER SCALE OF STATE TIMBER; WEIGHT MEASUREMENT
SERVICES; FEES.]
Subdivision 1. [CONSUMER SCALING.] The commissioner may
enter into an agreement with either a timber sale permittee, or
the purchaser of the cut products, or both, so that the scaling
of the cut timber and the collection of the payment for the same
can be consummated by the consumer. Such an agreement shall be
approved as to form and content by the attorney general and
shall provide for a bond or cash in lieu of a bond and such
other safeguards as are necessary to protect the interests of
the state. Such a The scaling and payment collection procedure
may be used for any state timber sale, except that no permittee
who is also the consumer shall both cut and scale the timber
sold unless such scaling is supervised by a state scaler.
Subd. 2. [WEIGHT MEASUREMENT SERVICES; FEES.] The
commissioner may enter into an agreement with the owner or
operator of any weight scale inspected, tested, and approved
under chapter 239 to provide weight measurements for the scaling
of state timber according to section 90.251. The agreement
shall be on a form prescribed by the attorney general, shall
become a part of the official record of any state timber permit
so scaled, and shall contain safeguards that are necessary to
protect the interests of the state. Except as otherwise
provided by the commissioner, the cost of any agreement to
provide weight measurement of state timber shall be paid by the
permit holder of any state timber permit so measured and the
cost shall be included in the statement of the amount due for
the permit under section 90.181, subdivision 1.
Sec. 13. Minnesota Statutes 2002, section 282.04,
subdivision 1, is amended to read:
Subdivision 1. [TIMBER SALES; LAND LEASES AND USES.] (a)
The county auditor may sell timber upon any tract that may be
approved by the natural resources commissioner. Such The sale
of timber shall be made for cash at not less than the appraised
value determined by the county board to the highest bidder after
not less than one week's published notice in an official paper
within the county. Any timber offered at such the public sale
and not sold may thereafter be sold at private sale by the
county auditor at not less than the appraised value thereof,
until such the time as the county board may withdraw such the
timber from sale. The appraised value of the timber and the
forestry practices to be followed in the cutting of said timber
shall be approved by the commissioner of natural resources.
(b) Payment of the full sale price of all timber sold on
tax-forfeited lands shall be made in cash at the time of the
timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the
appraised value, and the balance shall be paid prior to entry.
In the case of auction sales that are partitioned and sold as a
single sale with predetermined cutting blocks, the down payment
shall be no less than 15 percent of the appraised price of the
entire timber sale which may be held until the satisfactory
completion of the sale or applied in whole or in part to the
final cutting block. The value of each separate block must be
paid in full before any cutting may begin in that block. With
the permission of the county contract administrator the
purchaser may enter unpaid blocks and cut necessary timber
incidental to developing logging roads as may be needed to log
other blocks provided that no timber may be removed from an
unpaid block until separately scaled and paid for. If payment
is provided as specified in this paragraph as security under
paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any
down payment required for an auction sale under this paragraph,
to any other contract issued to the contract holder by the
county under this chapter to which the contract holder requests
in writing that it be credited, provided the request and
transfer is made within the same calendar year as the security
was received.
(c) The county board may require final settlement on the
basis of a scale of cut products. Any parcels of land from
which timber is to be sold by scale of cut products shall be so
designated in the published notice of sale above mentioned under
paragraph (a), in which case the notice shall contain a
description of such the parcels, a statement of the estimated
quantity of each species of timber thereon, and the appraised
price of each specie species of timber for 1,000 feet, per cord
or per piece, as the case may be. In such those cases any bids
offered over and above the appraised prices shall be by
percentage, the percent bid to be added to the appraised price
of each of the different species of timber advertised on the
land. The purchaser of timber from such the parcels shall pay
in cash at the time of sale at the rate bid for all of the
timber shown in the notice of sale as estimated to be standing
on the land, and in addition shall pay at the same rate for any
additional amounts which the final scale shows to have been cut
or was available for cutting on the land at the time of sale
under the terms of such the sale. Where the final scale of cut
products shows that less timber was cut or was available for
cutting under terms of such the sale than was originally paid
for, the excess payment shall be refunded from the forfeited tax
sale fund upon the claim of the purchaser, to be audited and
allowed by the county board as in case of other claims against
the county. No timber, except hardwood pulpwood, may be removed
from such the parcels of land or other designated landings until
scaled by a person or persons designated by the county board and
approved by the commissioner of natural resources. Landings
other than the parcel of land from which timber is cut may be
designated for scaling by the county board by written agreement
with the purchaser of the timber. The county board may, by
written agreement with the purchaser and with a consumer
designated by the purchaser when the timber is sold by the
county auditor, and with the approval of the commissioner of
natural resources, accept the consumer's scale of cut products
delivered at the consumer's landing. No timber shall be removed
until fully paid for in cash. Small amounts of timber not
exceeding $3,000 in appraised valuation may be sold for not less
than the full appraised value at private sale to individual
persons without first publishing notice of sale or calling for
bids, provided that in case of such a sale involving a total
appraised value of more than $200 the sale shall be made subject
to final settlement on the basis of a scale of cut products in
the manner above provided and not more than two such of the
sales, directly or indirectly to any individual shall be in
effect at one time.
(d) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations or
organized subdivisions of the state at public or private vendue
sale, and at such the prices and under such the terms as the
county board may prescribe, for use as cottage and camp sites
and for agricultural purposes and for the purpose of taking and
removing of hay, stumpage, sand, gravel, clay, rock, marl, and
black dirt therefrom from the land, and for garden sites and
other temporary uses provided that no leases shall be for a
period to exceed ten years; provided, further that any leases
involving a consideration of more than $12,000 per year, except
to an organized subdivision of the state shall first be offered
at public sale in the manner provided herein for sale of timber.
Upon the sale of any such leased land, it shall remain subject
to the lease for not to exceed one year from the beginning of
the term of the lease. Any rent paid by the lessee for the
portion of the term cut off by such the cancellation shall be
refunded from the forfeited tax sale fund upon the claim of the
lessee, to be audited and allowed by the county board as in case
of other claims against the county.
(e) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations, or
organized subdivisions of the state at public or private vendue
sale, at such the prices and under such the terms as the
county board may prescribe, for the purpose of taking and
removing for use for road construction and other purposes
tax-forfeited stockpiled iron-bearing material. The county
auditor must determine that the material is needed and suitable
for use in the construction or maintenance of a road, tailings
basin, settling basin, dike, dam, bank fill, or other works on
public or private property, and that the use would be in the
best interests of the public. No lease shall exceed ten years.
The use of a stockpile for these purposes must first be approved
by the commissioner of natural resources. The request shall be
deemed approved unless the requesting county is notified to the
contrary by the commissioner of natural resources within six
months after receipt of a request for approval for use of a
stockpile. Once use of a stockpile has been approved, the
county may continue to lease it for these purposes until
approval is withdrawn by the commissioner of natural resources.
(f) The county auditor, with the approval of the county
board is authorized to grant permits, licenses, and leases to
tax-forfeited lands for the depositing of stripping, lean ores,
tailings, or waste products from mines or ore milling plants,
upon such the conditions and for such the consideration and for
such the period of time, not exceeding 15 years, as the county
board may determine; said. The permits, licenses, or leases to
be are subject to approval by the commissioner of natural
resources.
(g) Any person who removes any timber from tax-forfeited
land before said timber has been scaled and fully paid for as
provided in this subdivision is guilty of a misdemeanor.
(h) The county auditor may, with the approval of the county
board, and without first offering at public sale, grant leases,
for a term not exceeding 25 years, for the removal of peat from
tax-forfeited lands upon such the terms and conditions as the
county board may prescribe. Any lease for the removal of peat
from tax-forfeited lands must first be reviewed and approved by
the commissioner of natural resources if the lease covers 320 or
more acres. No lease for the removal of peat shall be made by
the county auditor pursuant to this section without first
holding a public hearing on the auditor's intention to lease.
One printed notice in a legal newspaper in the county at least
ten days before the hearing, and posted notice in the courthouse
at least 20 days before the hearing shall be given of the
hearing.
(i) Notwithstanding any provision of paragraph (c) to the
contrary, the St. Louis County auditor may, at the discretion of
the county board, sell timber to the party who bids the highest
price for all the several kinds of timber, as provided for sales
by the commissioner of natural resources under section 90.14.
Bids offered over and above the appraised price need not be
applied proportionately to the appraised price of each of the
different species of timber.
(j) In lieu of any payment or deposit required in paragraph
(b), as directed by the county board and under terms set by the
county board, the county auditor may accept an irrevocable bank
letter of credit in the amount equal to the amount otherwise
determined in paragraph (b), exclusive of the down payment
required for an auction sale in paragraph (b). If an
irrevocable bank letter of credit is provided under this
paragraph, at the written request of the purchaser, the county
may periodically allow 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 county has received payment. The
remaining amount of the bank letter of credit after a reduction
under this paragraph must not be less than 20 percent of the
value of the timber purchased. If no cutting of timber has
taken place on the contract for which a letter of credit has
been provided, the county may allow the transfer of the letter
of credit to any other contract issued to the contract holder by
the county under this chapter to which the contract holder
requests in writing that it be credited.
Sec. 14. Laws 2003, chapter 128, article 1, section 5,
subdivision 4, is amended to read:
Subd. 4. Forest Management
33,066,000 33,066,000 33,666,000
Summary by Fund
General 32,824,000 32,824,000 27,209,000
Game and Fish 242,000 242,000
Natural Resources 6,215,000
$7,650,000 the first year and
$7,650,000 the second year are for
prevention, presuppression, and
suppression costs of emergency
firefighting and other costs incurred
under Minnesota Statutes, section
88.12. If the appropriation for either
year is insufficient to cover all costs
of presuppression and suppression, the
amount necessary to pay for these costs
during the biennium is appropriated
from the general fund. By November 15
of each year, the commissioner of
natural resources shall submit a report
to the chairs of the house of
representatives ways and means
committee, the senate finance
committee, the environment and
agriculture budget division of the
senate finance committee, and the house
of representatives environment and
natural resources finance committee,
identifying all firefighting costs
incurred and reimbursements received in
the prior fiscal year. The report must
be in a format agreed to by the house
environment finance committee chair,
the senate environment budget division
chair, the department, and the
department of finance. These
appropriations may not be transferred.
Any reimbursement of firefighting
expenditures made to the commissioner
from any source other than federal
mobilizations shall be deposited into
the general fund.
$730,000 the first year and $730,000
the second year are for the forest
resources council for implementation of
the Sustainable Forest Resources Act.
$350,000 the first year and $350,000
the second year are for the FORIST
timber management information system
and for increased forestry management.
$242,000 the first year and $242,000
the second year are from the game and
fish fund to implement ecological
classification systems (ECS) standards
on forested landscapes. This is a
onetime appropriation from revenue
deposited to the game and fish fund
under Minnesota Statutes, section
297A.94, paragraph (e), clause (1).
$6,215,000 the second year is from the
forest management investment account in
the natural resources fund for only the
purposes specified in Minnesota
Statutes, section 89.039, subdivision 2.
Notwithstanding Minnesota Statutes,
section 89.37, subdivision 4, up to
$600,000 for fiscal year 2005 is
transferred from the forest nursery
account to the forest management
investment account in the natural
resources fund to provide for cash flow
needs. The amount of the transfer
shall be repaid to the forest nursery
account from the forest management
investment account in the natural
resources fund no later than June 30,
2012.
[EFFECTIVE DATE.] This section is
effective July 1, 2004.
Sec. 15. [REPEALER.]
Minnesota Statutes 2003 Supplement, section 90.191,
subdivisions 3 and 4, are repealed.
Presented to the governor May 18, 2004
Signed by the governor May 20, 2004, 4:45 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes