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Office of the Revisor of Statutes

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

                            CHAPTER 262-H.F.No. 2334 
                  An act relating to natural resources; modifying 
                  provisions for the sale and disposition of surplus 
                  state lands; modifying certain state land management 
                  provisions; authorizing and describing certain state 
                  land sales; modifying certain water level controls; 
                  adding to and deleting from state parks, forests, and 
                  wildlife management areas; establishing Greenleaf Lake 
                  State Park; appropriating money; amending Minnesota 
                  Statutes 2002, sections 15.054; 84.0272, by adding 
                  subdivisions; 84.033; 85.015, subdivision 1; 86A.05, 
                  subdivision 14; 89.01, by adding a subdivision; 92.02; 
                  92.03; 92.04; 92.06, subdivisions 1, 2, 4, 5, by 
                  adding a subdivision; 92.08; 92.10, subdivision 2; 
                  92.12, subdivisions 1, 2, 4, 5; 92.121; 92.14, 
                  subdivision 1; 92.16, by adding a subdivision; 92.28; 
                  92.29; 92.321, subdivision 1; 94.09, subdivisions 1, 
                  3; 94.10; 94.11; 94.12; 94.13; 94.16, subdivision 2; 
                  164.08, subdivision 2; 282.01, subdivision 3; 
                  Minnesota Statutes 2003 Supplement, sections 525.161; 
                  525.841; Laws 1997, chapter 216, section 151; Laws 
                  1999, chapter 161, section 31, subdivision 3; Laws 
                  1999, chapter 161, section 31, subdivision 5; Laws 
                  1999, chapter 161, section 31, subdivision 8; Laws 
                  2003, First Special Session chapter 13, section 6; 
                  Laws 2003, First Special Session chapter 13, section 
                  16; proposing coding for new law in Minnesota 
                  Statutes, chapters 16B; 92; 103G; repealing Minnesota 
                  Statutes 2002, sections 92.09; 92.11; 94.09, 
                  subdivisions 2, 4, 5, 6. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                     SALE AND DISPOSITION OF SURPLUS LANDS
           Section 1.  Minnesota Statutes 2002, section 15.054, is 
        amended to read: 
           15.054 [PUBLIC EMPLOYEES NOT TO PURCHASE MERCHANDISE FROM 
        GOVERNMENTAL AGENCIES; EXCEPTIONS; PENALTY.] 
           No officer or employee of the state or any of its political 
        subdivisions shall sell or procure for sale or possess or 
        control for sale to any other officer or employee of the state 
        or subdivision, as appropriate, any property or materials owned 
        by the state or subdivision except pursuant to conditions 
        provided in this section.  Property or materials owned by the 
        state or a subdivision, except real property, and not needed for 
        public purposes, may be sold to an employee of the state or 
        subdivision after reasonable public notice at a public auction 
        or by sealed response, if the employee is not directly involved 
        in the auction or process pertaining to the administration and 
        collection of sealed responses.  Requirements for reasonable 
        public notice may be prescribed by other law or ordinance so 
        long as at least one week's published notice is specified.  An 
        employee of the state or a political subdivision may purchase no 
        more than one motor vehicle from the state in any 12-month 
        period.  A person violating the provisions of this section is 
        guilty of a misdemeanor.  This section shall not apply to the 
        sale of property or materials acquired or produced by the state 
        or subdivision for sale to the general public in the ordinary 
        course of business.  Nothing in this section shall prohibit an 
        employee of the state or a political subdivision from selling or 
        possessing for sale public property if the sale or possession 
        for sale is in the ordinary course of business or normal course 
        of the employee's duties. 
           Sec. 2.  [16B.281] [SALE AND DISPOSITION OF SURPLUS 
        STATE-OWNED LAND.] 
           Subdivision 1.  [APPLICABILITY.] All tracts or lots of real 
        property belonging to the state or that may hereafter accrue to 
        the state, including tracts or lots that have escheated to the 
        state, may be disposed of according to sections 16B.281 to 
        16B.287.  Sections 16B.281 to 16B.287 do not apply to school or 
        other trust fund lands belonging to the state, or that may 
        hereafter accrue to the state, under and by virtue of any act of 
        Congress or to any other state-owned lands the sale or 
        disposition of which is provided for under sections 94.09 to 
        94.16 or other law. 
           Subd. 2.  [CERTIFICATION REQUIRED.] On or before July 1 of 
        each year, the head of each department or agency having control 
        and supervision over any state-owned land, the sale or 
        disposition of which is not otherwise provided for by law, shall 
        certify in writing to the commissioner whether there is any 
        state-owned land under control and supervision of that 
        department or agency that is no longer needed.  If the 
        certification discloses lands no longer needed for a department 
        or agency, the head of the department or agency shall include in 
        the certification a description of the lands and the reasons why 
        the lands are no longer needed. 
           Subd. 3.  [NOTICE TO AGENCIES; DETERMINATION OF 
        SURPLUS.] On or before October 1 of each year, the commissioner 
        shall review the certifications of heads of each department or 
        agency provided for in this section.  The commissioner shall 
        send written notice to all state departments, agencies, and the 
        University of Minnesota describing any lands or tracts that may 
        be declared surplus.  If a department or agency or the 
        University of Minnesota desires custody of the lands or tracts, 
        it shall submit a written request to the commissioner, no later 
        than four calendar weeks after mailing of the notice, setting 
        forth in detail its reasons for desiring to acquire and its 
        intended use of the land or tract.  The commissioner shall then 
        determine whether any of the lands described in the 
        certifications of the heads of the departments or agencies 
        should be declared surplus and offered for sale or otherwise 
        disposed of by transferring custodial control to other 
        requesting state departments or agencies or to the Board of 
        Regents of the University of Minnesota for educational purposes, 
        provided however that transfer to the Board of Regents shall not 
        be determinative of tax exemption or immunity.  If the 
        commissioner determines that any of the lands are no longer 
        needed for state purposes, the commissioner shall make findings 
        of fact, describe the lands, declare the lands to be surplus 
        state land, state the reasons for the sale or disposition of the 
        lands, and notify the Executive Council of the determination. 
           Subd. 4.  [EXECUTIVE COUNCIL APPROVAL.] Within 60 days 
        after the receipt of the notification from the commissioner, the 
        Executive Council shall approve or disapprove the commissioner's 
        determinations.  If the determinations are approved, the lands 
        shall be offered for sale or otherwise disposed of as provided 
        for in sections 16B.281 to 16B.287.  If the Executive Council 
        disapproves the determinations, the same determinations 
        regarding the surplus lands may not be resubmitted to the 
        Executive Council until at least six months after the date of 
        the disapproval. 
           Subd. 5.  [REPORT REQUIRED.] On or before November 15 of 
        each even-numbered year, the commissioner shall report to the 
        governor and the legislature the following information for the 
        two-year period immediately preceding: 
           (1) the lands that state departments and agencies have 
        certified as no longer needed; 
           (2) the lands that have been determined to be no longer 
        needed for state purposes, regarding which the Executive Council 
        has been formally notified; and 
           (3) the lands that have been publicly sold. 
           Subd. 6.  [MAINTENANCE OF LAND BEFORE SALE.] The state 
        department or agency holding custodial control shall maintain 
        the state-owned lands until the lands are sold or otherwise 
        disposed of as provided for in sections 16B.281 to 16B.287. 
           Sec. 3.  [16B.282] [SURVEYS, APPRAISALS, AND SALE.] 
           Subdivision 1.  [APPRAISAL; NOTICE AND OFFER TO PUBLIC 
        BODIES.] (a) Before offering any surplus state-owned lands for 
        sale, the commissioner may survey the lands and, if the value of 
        the lands is estimated to be $40,000 or less, may have the lands 
        appraised.  The commissioner shall have the lands appraised if 
        the estimated value is in excess of $40,000.  
           (b) The appraiser shall, before entering upon the duties of 
        the office, take and subscribe an oath that the appraiser will 
        faithfully and impartially discharge the duties of appraiser 
        according to the best of the appraiser's ability and that the 
        appraiser is not interested, directly or indirectly, in any of 
        the lands to be appraised or the timber or improvements on the 
        lands or in the purchase of the lands, timber, or improvements 
        and has entered into no agreement or combination to purchase any 
        of the lands, timber, or improvements.  The oath shall be 
        attached to the appraisal report.  
           (c) Before offering surplus state-owned lands for public 
        sale, the lands shall first be offered to the city, county, 
        town, school district, or other public body corporate or politic 
        in which the lands are situated for public purposes and the 
        lands may be sold for public purposes for not less than the 
        appraised value of the lands.  To determine whether a public 
        body desires to purchase the surplus land, the commissioner 
        shall give a written notice to the governing body of each 
        political subdivision whose jurisdictional boundaries include or 
        are adjacent to the surplus land.  If a public body desires to 
        purchase the surplus land, it shall submit a written offer to 
        the commissioner no later than two weeks after receipt of notice 
        setting forth in detail its reasons for desiring to acquire and 
        its intended use of the land.  In the event that more than one 
        public body tenders an offer, the commissioner shall determine 
        which party shall receive the property and shall submit written 
        findings regarding the decision.  If lands are offered for sale 
        for public purposes and if a public body notifies the 
        commissioner of its desire to acquire the lands, the public body 
        may have up to two years from the date of the accepted offer to 
        commence payment for the lands in the manner provided by law. 
           Subd. 2.  [PUBLIC SALE REQUIREMENTS.] (a) Lands certified 
        as surplus by the head of a department or agency under section 
        16B.281 shall be offered for public sale by the commissioner as 
        provided in this subdivision.  After complying with subdivision 
        1 and before any public sale of surplus state-owned land is 
        made, the commissioner shall publish a notice of the sale at 
        least once each week for four successive weeks in a legal 
        newspaper and also in a newspaper of general distribution in the 
        city or county in which the real property to be sold is 
        situated.  The notice shall specify the time and place at which 
        the sale will commence, a general description of the lots or 
        tracts to be offered, and a general statement of the terms of 
        sale.  Each tract or lot shall be sold separately and shall be 
        sold for no less than its appraised value.  
           (b) Parcels remaining unsold after the offering may be sold 
        to anyone agreeing to pay the appraised value.  The sale shall 
        continue until all parcels are sold or until the commissioner 
        orders a reappraisal or withdraws the remaining parcels from 
        sale. 
           (c) Except as provided in section 16B.283, the cost of any 
        survey or appraisal as provided in subdivision 1 shall be added 
        to and made a part of the appraised value of the lands to be 
        sold, whether to any political subdivision of the state or to a 
        private purchaser as provided in this subdivision. 
           Sec. 4.  [16B.283] [TERMS OF PAYMENT.] 
           No less than ten percent of the purchase price shall be 
        paid at the time of sale with the balance payable according to 
        this section.  If the purchase price of any lot or parcel is 
        $5,000 or less, the balance shall be paid within 90 days of the 
        date of sale.  If the purchase price of any lot or parcel is in 
        excess of $5,000, the balance shall be paid in equal annual 
        installments for no more than five years, at the option of the 
        purchaser, with principal and interest payable annually in 
        advance at a rate equal to the rate in effect at the time under 
        section 549.09 on the unpaid balance, payable to the state 
        treasury on or before June 1 each year.  Any installment of 
        principal or interest may be prepaid. 
           Sec. 5.  [16B.284] [CONTRACT FOR DEED AND QUITCLAIM DEED.] 
           In the event a purchaser elects to purchase surplus real 
        property on an installment basis, the commissioner shall enter 
        into a contract for deed with the purchaser, in which shall be 
        set forth the description of the real property sold and the 
        price of the property, the consideration paid and to be paid for 
        the property, the rate of interest, and time and terms of 
        payment.  The contract for deed shall be made assignable and 
        shall further set forth that in case of the nonpayment of the 
        annual principal or interest payment due by the purchaser, or 
        any person claiming under the purchaser, then the contract for 
        deed, from the time of the failure, is entirely void and of no 
        effect and the state may be repossessed of the lot or tract and 
        may resell the lot or tract as provided in sections 16B.281 to 
        16B.287.  In the event the terms and conditions of a contract 
        for deed are completely fulfilled or if a purchaser makes a 
        lump-sum payment for the subject property in lieu of entering 
        into a contract for deed, the commissioner shall sign and cause 
        to be issued a quitclaim deed on behalf of the state.  The 
        quitclaim deed shall be in a form prescribed by the attorney 
        general and shall vest in the purchaser all of the state's 
        interest in the subject property except as provided in section 
        16B.286. 
           Sec. 6.  [16B.285] [RECORD OF CONTRACTS FOR DEED AND 
        ASSIGNMENTS; EFFECT.] 
           (a) A contract for deed issued for land sold according to 
        sections 16B.281 to 16B.287, or any assignment thereof, executed 
        and acknowledged as provided by law for the execution and 
        acknowledgment of deeds, may be recorded in the office of the 
        county recorder of any county in the state in the same manner 
        and with like effect as deeds are therein recorded.  The 
        contract for deed entitles the purchaser, or the heirs and 
        assigns of the purchaser, to the exclusive possession of the 
        land therein described, provided its terms have been in all 
        respects complied with, and the contract for deed and the record 
        thereof is conclusive evidence of title in the purchaser, or the 
        heirs and assigns of the purchaser, for all purposes and against 
        all persons, except the state of Minnesota in case of forfeiture.
           (b) When a contract for deed or partial interest in a 
        contract for deed is assigned, the assignment must be made on a 
        form provided by the commissioner, executed by the assignor and 
        assignee, and consented to by the commissioner.  An assignment 
        of a partial interest must state that payment to date has been 
        made to the commissioner. 
           (c) When the assignee satisfies the terms of the assignment 
        and corresponding terms of the contract for deed, the 
        commissioner shall issue a deed to the assignee. 
           Sec. 7.  [16B.286] [RESERVATION OF MINERALS.] 
           The state reserves for its own use all the iron, coal, 
        copper, and other valuable minerals in or upon all lands that 
        may be sold under sections 16B.281 to 16B.287 and any contract 
        for deed or quitclaim deed shall contain a clause reserving all 
        such minerals for the use of the state. 
           Sec. 8.  [16B.287] [DISPOSITION OF PROCEEDS FROM SURPLUS 
        STATE-OWNED LAND.] 
           Subdivision 1.  [PAYMENT OF EXPENSES.] Money received from 
        the sale of surplus state-owned land according to sections 
        16B.281 to 16B.287 shall be credited to the general fund except 
        as provided in this section. 
           Subd. 2.  [PAYMENT OF EXPENSES.] A portion of the proceeds 
        from the sale equal in amount to the survey, appraisal, legal, 
        advertising, and other expenses incurred by the commissioner or 
        other state official in rendering the property salable shall be 
        remitted to the account from which the expenses were paid and 
        are appropriated and immediately available for expenditure in 
        the same manner as other money in the account. 
           Sec. 9.  Minnesota Statutes 2002, section 85.015, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ACQUISITION.] (a) The commissioner of 
        natural resources shall establish, develop, maintain, and 
        operate the trails designated in this section.  Each trail shall 
        have the purposes assigned to it in this section.  The 
        commissioner of natural resources may acquire lands by gift or 
        purchase, in fee or easement, for the trail and facilities 
        related to the trail.  
           (b) Notwithstanding the offering to public entities, 
        referral to Executive Council, public sale, and related notice 
        and publication requirements of sections 94.09 to 94.165, the 
        commissioner of natural resources, in the name of the state, may 
        sell surplus lands not needed for trail purposes at private sale 
        to adjoining property owners and leaseholders.  The conveyance 
        must be by quitclaim in a form approved by the attorney general 
        for a consideration not less than the appraised value.  
           Sec. 10.  Minnesota Statutes 2002, section 89.01, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [SALE OF STATE FOREST LAND.] Any state lands 
        included in areas set apart as state forests are eliminated from 
        the state forest upon sale under the provisions of sections 
        92.06 to 92.09 or 94.09 to 94.16. 
           Sec. 11.  Minnesota Statutes 2002, section 92.02, is 
        amended to read: 
           92.02 [AUTHORITY.] 
           Sales under this chapter must be conducted by the 
        commissioner, a deputy of the commissioner, or a competent 
        person employed by the commissioner and bonded in a sum of at 
        least $10,000.  
           Sec. 12.  Minnesota Statutes 2002, section 92.03, is 
        amended to read: 
           92.03 [MINIMUM PRICE OF LANDS.] 
           Subdivision 1.  [SCHOOL LANDS.] The price of school lands 
        must be at least $5 an acre, including the value of timber 
        reproduction.  Sales of school lands must be held within the 
        county containing the lands or an adjacent county.  No more than 
        100,000 acres of school lands may be sold in one year.  If a 
        patent has been issued by the federal government to school land 
        before 1864 and the taxes on it have been paid for at least 35 
        years, the commissioner of finance may reduce the minimum price 
        of $5 an acre by the taxes paid to make the land salable.  
           Subd. 2.  [UNIVERSITY LANDS.] The price of lands donated to 
        the state by the United States by act of Congress entitled "An 
        act donating to the states of Minnesota and Oregon certain lands 
        reserved by Congress for the territories of Minnesota and 
        Oregon, for university purposes," approved March 2, 1861, and by 
        an act of Congress entitled "An act donating public lands to the 
        several states and territories which may provide colleges for 
        the benefit of agriculture and mechanic arts," approved July 2, 
        1862, must be at least $5 an acre, including the value of timber 
        reproduction.  The director commissioner shall appraise these 
        lands or any part of them and sell them in accordance with this 
        chapter.  
           Subd. 4.  [INTERNAL IMPROVEMENT LANDS.] Lands donated to 
        the state under the eighth section of an act of Congress 
        entitled "An act to appropriate the proceeds of the sales of the 
        public lands, and to grant preemption rights," approved 
        September 4, 1841, must be appraised and sold and the money 
        derived from its sale invested, as provided by the Minnesota 
        Constitution, article XI, section 8. 
           Sec. 13.  Minnesota Statutes 2002, section 92.04, is 
        amended to read: 
           92.04 [MINIMUM PRICE OF CERTAIN STATE LANDS.] 
           Lands selected for state institutions under an act of the 
        legislature entitled "An act to appropriate swamp lands to 
        certain educational and charitable institutions and for the 
        purpose of creating a state prison," approved February 13, 1865, 
        and lands known as state capitol lands, must be appraised and 
        sold as school lands are sold.  The price of lands belonging to 
        the state by virtue of the Congressional acts in this section 
        and section 92.03 must be at least $5 an acre, including the 
        value of timber reproduction.  The terms of payment and 
        conditions of sale must be the same as now provided by law.  
        When state lands have been benefited by and assessments paid for 
        drainage, the drainage improvements must be considered by the 
        state land examiner in making appraisals.  When the drained 
        lands are sold, the principal and interest paid on it must be 
        credited by the director commissioner to the proper fund to 
        which the land belongs.  
           Sec. 14.  Minnesota Statutes 2002, section 92.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS FOR LAND SALES HELD BEFORE JULY 1, 
        2004.] (a) The terms of payment on the sale of state public 
        lands held before July 1, 2004, must be as follows:  The 
        purchaser shall pay in cash at the time of sale the appraised 
        value of all timber and costs determined by the commissioner to 
        be associated with the sale including survey, appraisal, 
        publication, deed tax, filing fee, and similar costs.  At least 
        15 percent of the purchase price of the land exclusive of timber 
        and associated costs must be paid in cash at the time of sale.  
        The balance of the purchase price must be paid in no more than 
        20 equal annual installments.  Payments must be made by June 1 
        each year following the year in which the purchase was made, 
        with interest at the rate in effect at the time of sale, 
        calculated under this subdivision, on the unpaid balances.  Any 
        installment of principal or interest may be paid in advance, but 
        part payment of an installment will not be accepted.  For the 
        purpose of computing interest, any installment of principal not 
        paid on June 1 shall be credited on the following June 1.  The 
        purchaser may pay the balance due on a sale within 30 days of 
        the sale with no interest due. 
           (b) Interest on unpaid balances must be computed as annual 
        simple interest.  The rate of interest must be based on average 
        effective interest rates on mortgage loans as provided in 
        paragraph (c). 
           (c) On or before December 31 of each year, the commissioner 
        of natural resources shall determine the rate from the average 
        effective interest rate on loans closed using the Office of 
        Thrift Supervision series, formerly the Federal Home Loan Bank 
        Board series, or its successor agency, for the most recent 
        calendar month, reported on a monthly basis in the latest 
        statistical release of the Board of Governors of the Federal 
        Reserve System.  This yield, rounded to the nearest quarter of 
        one percent, is the annual interest rate for sales of state land 
        during the succeeding calendar year. 
           (d) For state land sales in calendar year 1993 after July 
        1, 1993, the rate is eight percent, which is the September 1992 
        average from the Office of Thrift Supervision series, rounded to 
        the nearest quarter of one percent. 
           Sec. 15.  Minnesota Statutes 2002, section 92.06, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [TERMS FOR LAND SALES AFTER JULY 1, 
        2004.] Notwithstanding subdivision 1, for state land sales on or 
        after July 1, 2004, the purchaser must pay at the time of sale 
        ten percent of the total amount bid and the remainder of the 
        payment is due within 90 days of the sale date.  A person who 
        fails to make final payment within 90 days of the sale date is 
        in default.  On default, all right, title, and interest of the 
        purchaser or heirs, representatives, or assigns of the purchaser 
        in the premises shall terminate without the state doing any act 
        or thing.  A record of the default must be made in the state 
        land records of the commissioner. 
           Sec. 16.  Minnesota Statutes 2002, section 92.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BUILDINGS OR IMPROVEMENTS.] If there are 
        buildings or other improvements upon the land, their value must 
        be appraised determined separately and included in the purchase 
        price.  A person must not remove, injure, or destroy a building 
        or other improvement until an amount equal to its appraised 
        determined value has been paid on the purchase price of the 
        premises, in addition to any payment required for timber.  
        Violation of this provision is a gross misdemeanor.  
           Sec. 17.  Minnesota Statutes 2002, section 92.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [IMPROVEMENTS, WHEN PAYMENT NOT NECESSARY.] (a) 
        If a person has made improvements to the land and if:  (1) the 
        commissioner believes that person settled the land in good faith 
        as homestead land under the laws of the United States before it 
        was certified to the state, (2) the improvements were lawfully 
        made by that person as a lessee of the state, or (3) the 
        commissioner determines, based on clear and convincing evidence 
        provided by the person, that the improvements were made by the 
        person as an inadvertent trespasser, then the value of the 
        improvements must be separately appraised determined and, if the 
        settler, lessee, or inadvertent trespasser purchases the land, 
        the settler, lessee, or inadvertent trespasser is not required 
        to pay for the improvements.  If another person purchases the 
        land, that person must pay the owner of the improvements, in 
        addition to all other required payments, the appraised 
        determined amount for the improvements. 
           (b) Payment for improvements must be made within 15 days of 
        the auction sale, either in cash or upon terms and conditions 
        agreeable to the owner of the improvements.  If payment for 
        improvements is not made in cash, and if there is no agreement 
        between the parties within 15 days of the auction sale, the 
        commissioner may: 
           (1) sell the property to the second highest qualified 
        bidder if that bidder submitted to the commissioner's 
        representative, at the auction sale, a written request to buy 
        the property at a specified price; or 
           (2) void the sale and reoffer the property at a subsequent 
        sale. 
           (c) This subdivision does not apply unless the owner of the 
        improvements makes a verified application to the commissioner 
        showing entitlement to the improvements before the first state 
        public sale at which the land is offered for sale.  The 
        applicant must appear at the sale and offer to purchase the land 
        for at least its appraised determined value including all timber 
        on it, and make the purchase if no higher bid is received.  
        Actions or other proceedings involving the land in question 
        begun before the sale must have been completed. 
           Sec. 18.  Minnesota Statutes 2002, section 92.06, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FURTHER SECURITY.] The director commissioner may 
        require of the purchaser security for the payment of the 
        deferred installments.  The director commissioner may recover 
        the money and enforce any security by action brought in the 
        director's name. 
           Sec. 19.  Minnesota Statutes 2002, section 92.08, is 
        amended to read: 
           92.08 [SURVEYS AND RESURVEYS.] 
           (a) The commissioner may have surveys made to determine the 
        correct boundaries or description of the land or to dispose of 
        it in convenient parcels.  When the commissioner determines that 
        the interest of the state will be promoted, the commissioner may 
        subdivide land controlled by the commissioner into smaller 
        parcels or city lots. 
           (b) When the commissioner believes that an injustice has 
        been done the purchaser because of an incorrect United States 
        survey, the commissioner may have a resurvey made by a competent 
        surveyor.  The surveyor shall prepare a plat showing the correct 
        acreage of each subdivision resurveyed and file it with the 
        commissioner and with the county recorder of the proper county.  
        The commissioner may call in the land certificates affected by 
        the resurvey and issue new ones.  The certificates must show the 
        correct acreage and give full credit for all payments of 
        principal and interest made. 
           Sec. 20.  Minnesota Statutes 2002, section 92.10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PREPARATION.] The commissioner shall prepare 
        suitable maps or plats designating school or other state lands 
        owned by the state which have been appraised and that are 
        subject to sale.  The maps or plats must be printed and 
        distributed with other printed matter in sufficient quantities 
        to properly advertise the sales provided by this chapter. 
           Sec. 21.  [92.115] [VALUATION OF STATE LANDS; MINIMUM BID.] 
           Subdivision 1.  [LAND VALUATION REQUIRED.] Before offering 
        any state land for sale under this chapter, the commissioner 
        must establish the value of the land.  The commissioner shall 
        have the land appraised if the estimated market value is in 
        excess of $50,000.  
           Subd. 2.  [MINIMUM BID.] The minimum bid for a parcel of 
        land must include the estimated value or appraised value of the 
        land and any improvements and, if any of the land is valuable 
        for merchantable timber, the value of the merchantable timber.  
        The minimum bid may include expenses incurred by the 
        commissioner in rendering the property salable, including 
        survey, appraisal, legal, advertising, and other expenses. 
           Sec. 22.  Minnesota Statutes 2002, section 92.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPRAISERS.] The commissioner may have any 
        school trust or other state lands appraised.  The appraisals 
        must be made by regularly appointed and qualified state 
        appraisers.  Each appraiser shall take and sign an oath to 
        faithfully and impartially discharge the duties of appraiser as 
        best able and that the appraiser is not interested directly or 
        indirectly in the state lands to be appraised, or the timber or 
        improvements on them or in their purchase.  The oath must be 
        attached to the appraisal report.  To be qualified, an appraiser 
        must hold a state appraiser license issued by the Department of 
        Commerce.  The appraisal must be in conformity with the Uniform 
        Standards of Professional Appraisal Practice of the Appraisal 
        Foundation. 
           Sec. 23.  Minnesota Statutes 2002, section 92.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [VALUATION AND APPRAISAL.] The appraiser shall 
        view and appraise the lands, including the merchantable timber 
        and improvements on them, and make a report to the 
        commissioner.  The valuation of the lands and the merchantable 
        timber and improvements on them must each be made and stated 
        separately in the appraisal.  The minimum price established by 
        the appraisal is the minimum price for the lands until changed 
        by later appraisal.  No school or other state lands may be sold 
        until appraised.  The price may not be less than $5 an acre.  In 
        the appraisal the value of the land before the addition of the 
        value of merchantable timber and improvements must include the 
        value of timber reproduction.  
           Sec. 24.  Minnesota Statutes 2002, section 92.12, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SALES.] The commissioner shall hold frequent 
        sales of school trust and other state lands.  The time and place 
        of the sales must be publicly posted in the courthouse in the 
        county where the lands are located and in the courthouse in the 
        county where the sale is to take place at least 30 days in 
        advance, in addition to the regular notice of sale provided by 
        law.  At this sale The commissioner shall sell lands the 
        commissioner considers best for the public interest.  
           Sec. 25.  Minnesota Statutes 2002, section 92.12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SALE OF LAND AND TIMBER.] When the appraisal and 
        or other reports show that the land is mainly valuable for 
        agricultural purposes and contains only small quantities of 
        timber, the commissioner may either sell the timber separately 
        as provided by law for state timber sales or sell the land as 
        agricultural land.  If the land is sold as agricultural land the 
        purchaser must pay down as first payment an amount equal to the 
        value of the timber, in addition to the first payment required 
        on the land.  If the appraisal and other reports show land 
        should be sold for continuous forest production or other 
        conservation purpose, the commissioner may require that the full 
        appraised value of land and timber must be paid by the purchaser 
        at the time of purchase.  
           Sec. 26.  Minnesota Statutes 2002, section 92.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TIME.] At least 30 days before a sale, the 
        commissioner shall give four weeks' published notice of the sale 
        at St. Paul, in each county containing land to be sold, and in 
        the county where the sale will be held.  If there is no 
        newspaper published in the county, four weeks' posted notice in 
        the county courthouse must be given.  The commissioner shall 
        also provide electronic notice of sale.  On or before the day of 
        sale, the commissioner may withdraw any lands. 
           Sec. 27.  [92.145] [UNSOLD LANDS.] 
           Except for school trust lands, parcels remaining unsold 
        after the public sale offering may be sold to anyone agreeing to 
        pay the minimum bid established for the public sale.  The sale 
        shall continue until all eligible parcels have been sold or the 
        commissioner withdraws the remaining parcels from sale. 
           Sec. 28.  Minnesota Statutes 2002, section 92.16, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [LANDS SALES AFTER JULY 1, 2004.] Notwithstanding 
        subdivisions 1 to 4, no certificate of sale shall be issued for 
        land sold on or after July 1, 2004.  The terms of payment for 
        land sales on or after July 1, 2004, are as provided in section 
        92.06, subdivision 1a. 
           Sec. 29.  Minnesota Statutes 2002, section 92.28, is 
        amended to read: 
           92.28 [PROCEEDS OF SALES; DISTRIBUTION.] 
           (a) A portion of the proceeds from the sale, equal in 
        amount to the survey, appraisal, legal, advertising, and other 
        expenses incurred by the commissioner in rendering the property 
        salable and included in the minimum bid amount, shall be 
        remitted to the account from which the expenses were paid and 
        are appropriated and immediately available for expenditure in 
        the same manner as other money in the account. 
           (b) The principal sums remainder of the proceeds accruing 
        from all sales by the commissioner of school, university, 
        internal improvement, or other state lands, or of pine timber 
        upon state lands must be deposited in the several permanent 
        funds to which they, respectively, belong.  The sums may not be 
        reduced by any costs or charges of officers, by fees, or any 
        other means.  
           (c) Money received as interest on the funds, as penalties, 
        or as rents of the lands, must be deposited in the current or 
        general funds to which they belong.  Interest and penalties on 
        the internal improvement land fund, and rents of the land, must 
        be compounded with the permanent fund.  
           Sec. 30.  Minnesota Statutes 2002, section 92.29, is 
        amended to read: 
           92.29 [LAND PATENTS.] 
           The commissioner of natural resources shall sign and issue 
        in the name of the state and under the seal of the state a 
        patent for the land described in any certificate of sale when 
        the principal and interest specified in the certificate of sale 
        and all delinquent taxes due on the land have been paid.  The 
        patent shall be issued to the purchaser named in the certificate 
        of sale, or the purchaser's successor in interest by execution, 
        judicial, mortgage or tax sale, or the assignee, vendee, heir or 
        devisee of the purchaser, as shown by a properly certified 
        abstract of title or other evidence if the purchaser's successor 
        is a person other than the purchaser named in the certificate of 
        sale.  If the certificate of sale has become lost or destroyed, 
        an affidavit stating that fact or a certified copy of the 
        certificate must be submitted by the applicant for a 
        patent.  When total payment is made within 90 days of the sale, 
        the commissioner shall sign and issue, in the name of the state 
        and under the seal of the state, a patent for the land sold. 
           Sec. 31.  Minnesota Statutes 2002, section 92.321, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER MAY SELL LANDS.] The 
        commissioner of natural resources may appraise and sell any 
        unreserved state public land which in the commissioner's opinion 
        is suitable for private forest management. 
           Sec. 32.  Minnesota Statutes 2002, section 94.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] All tracts or lots of real 
        property belonging to the state of Minnesota or that may 
        hereafter accrue to the state, including tracts or lots which 
        have escheated to the state, may be disposed of in accordance 
        with sections 94.09 to 94.16; provided, sections 94.09 to 94.16 
        shall not apply to school or other trust fund lands, belonging 
        to the state, or that may hereafter accrue to the state, under 
        and by virtue of any act of Congress or to any other state-owned 
        lands the sale or disposition of which is otherwise provided for 
        by law.  All tracts or lots of real property belonging to the 
        state and under the control and supervision of the commissioner 
        of natural resources shall be disposed of according to sections 
        94.09 to 94.16, unless otherwise provided by law. 
           Sec. 33.  Minnesota Statutes 2002, section 94.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE TO AGENCIES; DETERMINATION OF SURPLUS.] 
        On or before October 1 of each year, the commissioner of 
        administration shall review the certifications of heads of each 
        department or agency provided for in this section.  The 
        commissioner of natural resources shall send written notice to 
        all state departments, agencies and the University of Minnesota 
        describing any lands or tracts which may be declared surplus.  
        If a department or agency or the University of Minnesota desires 
        custody of the lands or tracts, it shall submit a written 
        request to the commissioner, no later than four calendar weeks 
        after mailing of the notice, setting forth in detail its reasons 
        for desiring to acquire, and its intended use of, the land or 
        tract.  The commissioner of administration shall then determine 
        whether any of the lands described in the certifications of the 
        heads of the departments or agencies should be declared surplus 
        and offered for sale or otherwise disposed of by transferring 
        custodial control to other requesting state departments or 
        agencies or to the Board of Regents of the University of 
        Minnesota for educational purposes, provided however that 
        transfer to the Board of Regents shall not be determinative of 
        tax exemption or immunity.  If the commissioner determines that 
        any of such the lands are no longer needed for state purposes, 
        the commissioner shall make findings of fact, describe the 
        lands, declare such the lands to be surplus state land, and 
        state the reasons for the sale or disposition thereof, and 
        notify the state Executive Council of such determination of the 
        lands.  
           Sec. 34.  Minnesota Statutes 2002, section 94.10, is 
        amended to read: 
           94.10 [SURVEYS, APPRAISALS, AND SALE.] 
           Subdivision 1.  [APPRAISAL; NOTICE AND OFFER TO PUBLIC 
        BODIES.] (a) Before offering any surplus state-owned lands for 
        sale, the commissioner of administration may survey such natural 
        resources must establish the value of the lands, and if the 
        value thereof is estimated to be $40,000 or less, may have such 
        lands appraised.  The commissioner shall have the lands 
        appraised if the estimated value is in excess of 
        $40,000 $50,000.  The appraiser shall before entering upon the 
        duties of the office take and subscribe an oath that the 
        appraiser will faithfully and impartially discharge the duties 
        as appraiser according to the best of the appraiser's ability 
        and that the appraiser is not interested directly or indirectly 
        in any of the lands to be appraised or the timber or 
        improvements thereon or in the purchase thereof and has entered 
        into no agreement or combination to purchase the same or any 
        part thereof, which oath shall be attached to the report of such 
        appraisal No parcel of state-owned land shall be sold for less 
        than $1,000.  
           (b) The appraisals must be made by regularly appointed and 
        qualified state appraisers.  To be qualified, an appraiser must 
        hold a state appraiser license issued by the Department of 
        Commerce.  The appraisal must be in conformity with the Uniform 
        Standards of Professional Appraisal Practice of the Appraisal 
        Foundation. 
           (c) Before offering such surplus state-owned lands for 
        public sale, such the lands shall first be offered to the city, 
        county, town, school district, or other public body corporate or 
        politic in which the lands are situated for public purposes 
        and they the lands may be sold for such public purposes for not 
        less than the appraised value thereof of the lands.  To 
        determine whether a public body desires to purchase the surplus 
        land, the commissioner of administration natural resources shall 
        give a written notice to the governing body of each political 
        subdivision whose jurisdictional boundaries include or are 
        adjacent to the surplus land.  If a public body desires to 
        purchase the surplus land, it shall submit a written offer to 
        the commissioner not no later than two weeks after receipt of 
        notice setting forth in detail its reasons for desiring to 
        acquire and its intended use of the land.  In the event that 
        more than one public body tenders an offer, the commissioner 
        shall determine which party shall receive the property, and 
        shall submit written findings regarding the decision.  If lands 
        are offered for sale for such public purposes, and if a public 
        body notifies the commissioner of administration of its desire 
        to acquire such the lands, the public body may have not to 
        exceed up to two years from the date of the accepted offer to 
        commence payment for the lands in the manner provided by law. 
           Subd. 2.  [PUBLIC SALE REQUIREMENTS.] (a) Lands certified 
        as surplus by the head of a department or agency other than the 
        Department of Natural Resources shall be offered for public sale 
        by the commissioner of administration as provided in this 
        paragraph.  After complying with subdivision 1 and before any 
        public sale of surplus state-owned land is made and at least 30 
        days before the sale, the commissioner of administration natural 
        resources shall publish a notice thereof at least once in each 
        week for four successive weeks in a legal newspaper and also of 
        the sale in a newspaper of general distribution in the city or 
        county in which the real property to be sold is situated, 
        which.  The notice shall specify the time and place at which the 
        sale will commence, a general description of the lots or tracts 
        to be offered, and a general statement of the terms of 
        sale.  Each tract or lot shall be sold separately and shall be 
        sold for not less than the appraised value thereof.  The 
        commissioner shall also provide electronic notice of sale. 
           (b) The minimum bid for a parcel of land must include the 
        estimated value or appraised value of the land and any 
        improvements and, if any of the land is valuable for 
        merchantable timber, the value of the merchantable timber.  The 
        minimum bid may include expenses incurred by the commissioner in 
        rendering the property salable, including survey, appraisal, 
        legal, advertising, and other expenses. 
           (c) Parcels remaining unsold after the offering may be sold 
        to anyone agreeing to pay the appraised value thereof.  The sale 
        shall continue until all parcels are sold or until the 
        commissioner orders a reappraisal or withdraws the remaining 
        parcels from sale.  
           (b) Lands certified as surplus by the commissioner of 
        natural resources shall be offered for public sale by the 
        commissioner of natural resources in the manner provided in 
        paragraph (a) for sales by the commissioner of administration. 
           (c) Except as provided in section 94.11, the cost of any 
        survey or appraisal as provided in subdivision 1 shall be added 
        to and made a part of the appraised value of the lands to be 
        sold, whether to any political subdivision of the state or to a 
        private purchaser as provided in this subdivision.  
           Sec. 35.  Minnesota Statutes 2002, section 94.11, is 
        amended to read: 
           94.11 [TERMS OF PAYMENT.] 
           Not less than ten percent of the purchase price shall be 
        paid at the time of sale with the balance payable as follows:  
        If the purchase price of any lot or parcel is $5,000 or less, 
        the balance shall be paid within 90 days of the date of sale.  
        If the purchase price of any lot or parcel is in excess of 
        $5,000, the balance shall be paid in equal annual installments 
        for not more than five years, at the option of the purchaser, 
        with principal and interest payable annually in advance at a 
        rate equal to the rate in effect at the time under section 
        549.09 on the unpaid balance, payable to the state treasury on 
        or before June 1 each year.  Any installment of principal or 
        interest may be prepaid.  Terms of payment for lands sold by the 
        commissioner of natural resources before July 1, 2004, are the 
        same as those provided for state public lands by section 92.06, 
        subdivision 1.  For lands sold by the commissioner of natural 
        resources on or after July 1, 2004, the terms of payment are the 
        same as those provided for state public lands by section 92.06, 
        subdivision 1a. 
           Sec. 36.  Minnesota Statutes 2002, section 94.12, is 
        amended to read: 
           94.12 [CONTRACT FOR DEED AND QUITCLAIM DEED.] 
           Subdivision 1.  [LANDS SOLD BEFORE JULY 1, 2004.] In the 
        event a purchaser elects to purchase surplus real property on an 
        installment basis, the commissioner of administration shall 
        enter into a contract for deed with the purchaser thereof in 
        which shall be set forth the description of the real property 
        sold and the price thereof, the consideration paid and to be 
        paid therefor, the rate of interest, and time and terms of 
        payment.  This contract for deed shall be made assignable and 
        shall further set forth that in case of the nonpayment of the 
        annual principal or interest payment due by the purchaser, or 
        any person claiming under the purchaser, then the contract for 
        deed, from the time of such failure, will be entirely void and 
        of no effect and the state may be repossessed of the lot or 
        tract and may resell the same as provided in sections 94.09 to 
        94.16.  In the event the terms and conditions of a contract for 
        deed for lands sold before July 1, 2004, are completely 
        fulfilled or if a purchaser makes a lump sum payment for the 
        subject property in lieu of entering into a contract for deed, 
        the commissioner of administration, shall sign and cause to be 
        issued a quitclaim deed on behalf of the state.  Said quitclaim 
        deed shall be in a form prescribed by the attorney general and 
        shall vest in purchaser all of the state's interest in the 
        subject property except as provided in section 94.14.  
           Subd. 2.  [LANDS SOLD AFTER JULY 1, 2004.] On or after July 
        1, 2004, when total payment is made within 90 days of the sale, 
        the commissioner of natural resources shall sign and cause to be 
        issued a quitclaim deed on behalf of the state.  The quitclaim 
        deed shall be in a form prescribed by the attorney general and 
        shall vest in the purchaser all of the state's interest in the 
        subject property, except as provided in section 94.14. 
           Sec. 37.  Minnesota Statutes 2002, section 94.13, is 
        amended to read: 
           94.13 [RECORD OF CONTRACTS FOR DEED AND ASSIGNMENTS; 
        EFFECT.] 
           (a) A contract for deed issued before July 1, 2004, 
        pursuant to sections 94.09 to 94.16, or any assignment thereof, 
        executed and acknowledged as provided by law for the execution 
        and acknowledgment of deeds may be recorded in the office of the 
        county recorder of any county in the state in the same manner 
        and with like effect as deeds are therein recorded.  This 
        contract for deed shall entitle the purchaser thereof, or the 
        heirs and assigns of the purchaser, to the exclusive possession 
        of the land therein described, provided its terms have been in 
        all respects complied with, and the contract for deed and the 
        record thereof shall be conclusive evidence of title in the 
        purchaser, or the heirs and assigns of the purchaser, for all 
        purposes and against all persons, except the state of Minnesota 
        in case of forfeiture. 
           (b) When a contract for deed or partial interest in a 
        contract for deed is assigned, the assignment must be made on a 
        form provided by the commissioner, executed by the assignor and 
        assignee, and consented to by the commissioner.  An assignment 
        of a partial interest must state that payment to date has been 
        made to the commissioner.  
           (c) When the assignee satisfies the terms of the assignment 
        and corresponding terms of the contract for deed, the 
        commissioner shall issue a deed to the assignee.  
           Sec. 38.  Minnesota Statutes 2002, section 94.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PAYMENT OF EXPENSES.] A portion of the proceeds 
        from the sale equal in amount to the survey, appraisal, legal, 
        advertising, and other expenses incurred by the commissioner of 
        administration or other state official natural resources in 
        rendering the property salable shall be remitted to the account 
        from which the expenses were paid, and are appropriated and 
        immediately available for expenditure in the same manner as 
        other money in the account. 
           Sec. 39.  Minnesota Statutes 2003 Supplement, section 
        525.161, is amended to read: 
           525.161 [NO SURVIVING SPOUSE OR KINDRED, NOTICES TO 
        ATTORNEY GENERAL.] 
           When it appears from the petition or application for 
        administration of the estate, or otherwise, in a proceeding in 
        the court that the intestate left surviving no spouse or 
        kindred, the court shall give notice of such fact and notice of 
        all subsequent proceedings in such estate to the attorney 
        general forthwith; and the attorney general shall protect the 
        interests of the state during the course of administration.  The 
        residue which escheats to the state shall be transmitted to the 
        attorney general.  All moneys, stocks, bonds, notes, mortgages 
        and other securities, and all other personal property so 
        escheated shall then be given into the custody of the 
        commissioner of finance who shall immediately credit the moneys 
        received to the general fund.  The commissioner of finance shall 
        hold such stocks, bonds, notes, mortgages and other securities, 
        and all other personal property, subject to such investment, 
        sale or other disposition as the State Board of Investment may 
        direct pursuant to section 11A.04, clause (9).  The attorney 
        general shall immediately report to the State Executive Council 
        all real property received in the individual escheat, and any 
        sale or disposition of such real estate shall be made in 
        accordance with sections 94.09 to 94.16 16B.281 to 16B.287.  
           Sec. 40.  Minnesota Statutes 2003 Supplement, section 
        525.841, is amended to read: 
           525.841 [ESCHEAT RETURNED.] 
           In all such cases the commissioner of finance shall be 
        furnished with a certified copy of the court's order assigning 
        the escheated property to the persons entitled thereto, and upon 
        notification of payment of the estate tax, the commissioner of 
        finance shall draw a warrant or execute a proper conveyance to 
        the persons designated in such order.  In the event any 
        escheated property has been sold pursuant to sections 11A.04, 
        clause (9), and 11A.10, subdivision 2, or 94.09 to 94.16 16B.281 
        to 16B.287, then the warrant shall be for the appraised value as 
        established during the administration of the decedent's estate.  
        There is hereby annually appropriated from any moneys in the 
        state treasury not otherwise appropriated an amount sufficient 
        to make payment to all such designated persons.  No interest 
        shall be allowed on any amount paid to such persons.  
           Sec. 41.  [REPEALER.] 
           Minnesota Statutes 2002, sections 92.09; 92.11; and 94.09, 
        subdivisions 2, 4, 5, and 6, are repealed. 
           Sec. 42.  [EFFECTIVE DATE.] 
           Sections 1 to 41 are effective August 1, 2004. 

                                   ARTICLE 2
                             STATE LAND MANAGEMENT
           Section 1.  Minnesota Statutes 2002, section 84.0272, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [MINIMAL VALUE ACQUISITION.] (a) Notwithstanding 
        subdivision 1, if the commissioner determines that lands or 
        interests in land have a value less than $5,000, the 
        commissioner may acquire the lands for the value determined by 
        the commissioner without an appraisal.  The commissioner shall 
        make the determination based upon available information 
        including, but not limited to: 
           (1) the most recent assessed market value of the land or 
        interests in land as determined by the county assessor of the 
        county in which the land or interests in land is located; 
           (2) a sale price of the land or interests in land, provided 
        the sale occurred within the past year; 
           (3) the sale prices of comparable land or interests in land 
        located in the vicinity and sold within the past year; or 
           (4) an appraisal of the land or interests in land conducted 
        within the past year.  
           (b) In the event the value is minimal, the commissioner may 
        add a transaction incentive, provided that the sum of the 
        incentive plus the value of the land does not exceed $1,000. 
           Sec. 2.  Minnesota Statutes 2002, section 84.0272, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [AGREEMENT BY LANDOWNER.] The commissioner shall 
        utilize the valuation methods prescribed in subdivisions 2 and 3 
        only with prior consent of the landowner from whom the state 
        proposes to purchase land or interests in land. 
           Sec. 3.  Minnesota Statutes 2002, section 84.033, is 
        amended to read: 
           84.033 [SCIENTIFIC AND NATURAL AREAS.] 
           Subdivision 1.  [ACQUISITION; DESIGNATION.] The 
        commissioner of natural resources may acquire by gift, lease, 
        easement, or purchase, in the manner prescribed under chapter 
        117, in the name of the state, lands or any interest in lands 
        suitable and desirable for establishing and maintaining 
        scientific and natural areas.  The commissioner shall designate 
        any land so acquired as a scientific and natural area and shall 
        administer any land so acquired and designated as provided by 
        section 86A.05.  
           Subd. 2.  [DESIGNATION APPROVAL.] No scientific and natural 
        area may be designated unless the designation is approved by 
        resolution of the board of the county in which the land is 
        located. 
           [EFFECTIVE DATE.] This section is effective for 
        designations after the date of enactment. 
           Sec. 4.  Minnesota Statutes 2002, section 86A.05, 
        subdivision 14, is amended to read: 
           Subd. 14.  [AQUATIC MANAGEMENT AREAS.] (a) Aquatic 
        management areas may be established to protect, develop, and 
        manage lakes, rivers, streams, and adjacent wetlands and lands 
        that are critical for fish and other aquatic life, for water 
        quality, and for their intrinsic biological value, public 
        fishing, or other compatible outdoor recreational uses. 
           (b) Aquatic management areas may be established to protect 
        wetland areas under ten acres that are donated to the Department 
        of Natural Resources.  
           (c) No unit may be authorized unless it meets one or more 
        of the following criteria: 
           (1) provides angler or management access; 
           (2) protects fish spawning, rearing, or other unique 
        habitat; 
           (3) protects aquatic wildlife feeding and nesting areas; 
           (4) protects critical shoreline habitat; or 
           (5) provides a site for research on natural history. 
           (d) Aquatic management areas must be administered by the 
        commissioner of natural resources in a manner consistent with 
        the purposes of this subdivision to perpetuate and, if 
        necessary, reestablish high quality aquatic habitat for 
        production of fish, wildlife, and other aquatic species.  Public 
        fishing and other uses shall be consistent with the limitations 
        of the resource, including the need to preserve adequate 
        populations and prevent long-term habitat injury or excessive 
        fish population reduction or increase.  Public access to aquatic 
        management areas may be closed during certain time periods. 
           (e) State-owned lands or waters, or any state-owned 
        interests in lands or waters, acquired before August 1, 2000, 
        that meet the criteria of this subdivision and that have been 
        administered by the commissioner of natural resources as fish 
        management areas or other areas of fishery interest are 
        authorized as units of the outdoor recreation system upon 
        designation by the commissioner of natural resources as aquatic 
        management areas. 
           Sec. 5.  Minnesota Statutes 2002, section 92.121, is 
        amended to read: 
           92.121 [PERMANENT SCHOOL FUND LANDS.] 
           The commissioner of natural resources shall exchange 
        permanent school fund land as defined in the Minnesota 
        Constitution, article XI, section 8, located in state parks, 
        state recreation areas, wildlife management areas, scientific 
        and natural areas, or state waysides or on lands managed by the 
        commissioner as old growth stands, for other lands as allowed by 
        the Minnesota Constitution, article XI, section 10, and section 
        94.343, subdivision 1, that are compatible with the goal of the 
        permanent school fund lands in section 127A.31 when, as a result 
        of management practices applied to the permanent school fund 
        lands and associated resources, revenue generation has been 
        diminished or is prohibited and no alternative has been put into 
        effect to compensate the permanent school fund for the income 
        losses.  
           Sec. 6.  [103G.407] [WATER LEVEL CONTROLS FOR PUBLIC WATERS 
        WITH AN OUTLET.] 
           (a) The commissioner, upon due consideration of 
        recommendations and objections as provided in paragraph (c), may 
        issue a public waters work permit to establish a control 
        elevation for a public water with an outlet that is different 
        than any previously existing or established control level when: 
           (1) all of the property abutting the ordinary high water 
        mark of the public water is in public ownership or the public 
        entity has obtained permanent flowage easements; and 
           (2) the commissioner finds that the proposed change in the 
        control level is in the public interest and causes minimal 
        adverse environmental impact.  
           (b) In addition to the requirements in section 103G.301, 
        subdivision 6, if the proposed control elevation differs from 
        any historical control level, the permit applicant shall serve a 
        copy of the application on each county and municipality within 
        which any portion of the lake is located and on the lake 
        improvement district, if one exists. 
           (c) A county, municipality, watershed district, watershed 
        management organization, or lake improvement district required 
        to be served under paragraph (b) or section 103G.301, 
        subdivision 6, may file a written recommendation for the 
        issuance of the permit or an objection to the issuance of the 
        permit with the commissioner within 30 days after receiving a 
        copy of the application. 
           Sec. 7.  Minnesota Statutes 2002, section 164.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MANDATORY ESTABLISHMENT; CONDITIONS.] (a) Upon 
        petition presented to the town board by the owner of a tract of 
        land containing at least five acres, who has no access thereto 
        except over a navigable waterway or over the lands of others, or 
        whose access thereto is less than two rods in width, the town 
        board by resolution shall establish a cartway at least two rods 
        wide connecting the petitioner's land with a public road.  A 
        town board shall establish a cartway upon a petition of an owner 
        of a tract of land that, as of January 1, 1998, was on record as 
        a separate parcel, contained at least two but less than five 
        acres, and has no access thereto except over a navigable 
        waterway or over the lands of others.  The town board may select 
        an alternative route other than that petitioned for if the 
        alternative is deemed by the town board to be less disruptive 
        and damaging to the affected landowners and in the public's best 
        interest.  
           (b) In an unorganized territory, the board of county 
        commissioners of the county in which the tract is located shall 
        act as the town board.  The proceedings of the town board shall 
        be in accordance with section 164.07.  
           (c) The amount of damages shall be paid by the petitioner 
        to the town before such cartway is opened.  For the purposes of 
        this subdivision damages shall mean the compensation, if any, 
        awarded to the owner of the land upon which the cartway is 
        established together with the cost of professional and other 
        services, hearing costs, administrative costs, recording costs, 
        and other costs and expenses which the town may incur in 
        connection with the proceedings for the establishment of the 
        cartway.  The town board may by resolution require the 
        petitioner to post a bond or other security acceptable to the 
        board for the total estimated damages before the board takes 
        action on the petition. 
           (d) Town road and bridge funds shall not be expended on the 
        cartway unless the town board, or the county board acting as the 
        town board in the case of a cartway established in an 
        unorganized territory, by resolution determines that an 
        expenditure is in the public interest.  If no resolution is 
        adopted to that effect, the grading or other construction work 
        and the maintenance of the cartway is the responsibility of the 
        petitioner, subject to the provisions of section 164.10.  
           (e) After the cartway has been constructed the town board, 
        or the county board in the case of unorganized territory, may by 
        resolution designate the cartway as a private driveway with the 
        written consent of the affected landowner in which case from the 
        effective date of the resolution no town road and bridge funds 
        shall be expended for maintenance of the driveway; provided that 
        the cartway shall not be vacated without following the vacation 
        proceedings established under section 164.07. 
           Sec. 8.  Minnesota Statutes 2002, section 282.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONCONSERVATION LANDS; APPRAISAL AND SALE.] 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.  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 county may appeal the decision of the commissioner 
        in accordance with chapter 14.  
           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 30 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 such 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 30-day 60-day notice as to any 
        parcel of land which has been examined and the timber value 
        approved as required by this section. 
           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.  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. 
           Sec. 9.  Laws 1997, chapter 216, section 151, is amended to 
        read: 
           Sec. 151.  [HORSESHOE BAY LEASES.] 
           Subdivision 1.  [DEFINITIONS.] (a) "Lessee" means a lessee 
        of lands leased under Minnesota Statutes, section 92.46, that 
        are located in Section 16, Township 62 North, Range 4 East, Cook 
        County, of record with the commissioner of natural resources as 
        of May 14, 1993. 
           (b) "New lease" means a lease issued after the effective 
        date of this act from May 31, 1997, to May 31, 2004, under the 
        terms and conditions specified in Minnesota Statutes, section 
        92.46, subdivisions 1, 1a, and 3, except that the lease may be 
        for a life term and is not assignable or transferable and may 
        not be amended to include additional lessees. 
           (c) "Amended lease" means a lease issued after May 31, 
        2004, under the terms and conditions specified in Minnesota 
        Statutes, section 92.46, subdivisions 1, 1a, and 3, except that: 
           (1) the term of the lease shall be for the lifetime of the 
        party being issued the amended lease and, if transferred, for 
        the lifetime of the party to whom the lease is transferred; 
           (2) the lease shall provide that the lease may be 
        transferred only once and the transfer must be to a person 
        within the second degree of kindred according to civil law; 
           (3) the commissioner shall limit the number of transferees 
        per lease to no more than two persons who have attained legal 
        age; and 
           (4) the lease rates shall be as provided in Laws 2003, 
        First Special Session chapter 9, article 1, section 52. 
           Subd. 2.  [OPTIONS FOR LESSEES.] (a) If requested in 
        writing by a lessee before January 1, 1998, the commissioner 
        shall, at the lessee's option: 
           (1) pay to the lessee the appraised value of the lessee's 
        improvements on the land and terminate the existing lease as of 
        the date of payment for improvements; or 
           (2) issue a new lease for the life of the lessee that 
        provides that when the lease term expires, the commissioner 
        shall pay to the lessee or a beneficiary that must be designated 
        in writing by the lessee the appraised value of the lessee's 
        improvements on the land.  A lessee who elects this option may 
        elect to terminate the lease at any time during the term of the 
        lease in exchange for payment by the commissioner for the 
        appraised value of the lessee's improvements on the land. 
           (b) If the commissioner has not received written notice of 
        a lessee's election under paragraph (a) by January 1, 1998, the 
        commissioner may proceed under paragraph (a), clause (1). 
           (c) If requested in writing by the lessee before January 1, 
        2005, the commissioner shall issue an amended lease to a lessee 
        who holds a new lease issued under paragraph (a).  When the 
        amended lease term expires, the commissioner shall pay to the 
        lessee, the transferee, or a beneficiary that must be designated 
        in writing by the lessee or the transferee, the appraised value 
        of the lessee's or transferee's improvements on the land.  A 
        lessee or transferee may elect to terminate the lease at any 
        time during the term of the lease in exchange for payment by the 
        commissioner for the appraised value of the lessee's or 
        transferee's improvements on the land. 
           (d) After the effective date of this section May 31, 1997, 
        no lessee under paragraph (a), clause (2), or (c), shall 
        construct or remodel, other than necessary for maintenance and 
        upkeep, a cabin or other structure during the lease. 
           (d) (e) The commissioner may use money appropriated from 
        the land acquisition account under Minnesota Statutes, section 
        94.165, for payments under paragraph (a) or (c). 
           (e) (f) Notwithstanding Minnesota Statutes, section 92.46, 
        subdivision 1a, the commissioner may elect whether to amend the 
        leases in paragraph (a) or (c) to expand lot size to conform 
        with current shoreline standards. 
           Sec. 10.  Laws 2003, First Special Session chapter 13, 
        section 6, is amended to read: 
           Sec. 6.  [PROPOSED GREENLEAF LAKE STATE PARK.] 
           Subdivision 1.  [85.012] [Subd. 24b.] [PROPOSED PARK 
        GREENLEAF LAKE STATE PARK, MEEKER COUNTY.] Boundaries for a 
        proposed Greenleaf Lake state park is established in Meeker 
        county are established according to subdivision 2. 
           Subd. 2.  [BOUNDARIES.] The following described lands are 
        proposed for added to Greenleaf Lake state park, all in Township 
        118 North, Range 30 West, Meeker county:  
           (1) all of Government Lots 1 and 2, the East Half of the 
        South 23.61 acres of Government Lot 3, and Government Lot 4, 
        excepting that part described as follows:  Beginning at a point 
        109 feet South of a point on the section line which is 4301.5 
        feet East of the northwest corner of Section 20; thence in a 
        southwesterly direction South 14 degrees 36 seconds West 403.0 
        feet; thence in a southeasterly direction South 75 degrees 24 
        minutes East 402 feet, to a point on the meandered line of Sioux 
        Lake; thence in a northeasterly direction along the meandered 
        line North 14 degrees 36 minutes East 553 feet; thence in a 
        southwesterly direction along the meandered line South 84 
        degrees 00 minutes West 431 feet, to the point of beginning, 
        said exception containing 4.4 acres more or less; all in Section 
        20; 
           (2) all of Government Lot 2, the Southeast Quarter except 
        that described as follows:  Beginning at the northeast corner of 
        said Southwest Quarter of the Southeast Quarter; thence on an 
        assumed bearing of South 0 degrees 08 minutes 46 seconds West, 
        along the east line of said Southwest Quarter of the Southeast 
        Quarter, a distance of 306.24 feet; thence on a bearing of North 
        84 degrees 17 minutes 23 seconds West, 628.50 feet; thence on a 
        bearing of North 0 degrees 08 minutes 46 seconds East, 338.05 
        feet; thence on a bearing of South 86 degrees 08 minutes East, 
        626.86 feet to the east line of the Northwest Quarter of the 
        Southeast Quarter; thence on a bearing of South 0 degrees 08 
        minutes 46 seconds West, along last said line, 52.07 feet to the 
        point of beginning.  Containing 2.5 acres, more or less.  
        Subject to the rights of the public in County Road No. 172; and 
        excepting the north nine and eighty-four hundredths (9.84) acres 
        of the Southeast Quarter of the Southeast Quarter described as 
        follows:  Beginning at the northeast corner of the Southeast 
        Quarter of the Southeast Quarter and running; thence West 
        nineteen and ninety-two hundredths chains (19.92) to the 1/16 
        section corner; thence South on the 1/16 section line four and 
        sixty-four hundredths (4.64) chains; thence East nineteen and 
        ninety-three hundredths (19.93) chains to the section line; 
        thence North on section line five and twenty-four hundredths 
        (5.24) chains to the place of beginning; all in Section 21; 
           (3) the Northeast Quarter of the Northeast Quarter, the 
        Northwest Quarter of the Northeast Quarter, the Northeast 
        Quarter of the Northwest Quarter, and the Northwest Quarter of 
        the Northwest Quarter, all in Section 28; 
           (4) all of Section 29, except that part of Government Lot 4 
        bounded by the following described lines:  Beginning at a point 
        of intersection with the center line of County Road No. 169 and 
        the north line of said Section 29; thence North 90 degrees 00 
        minutes East, 994.8 feet along the north line of said Section 
        29; thence South 00 degrees 00 minutes West, 17.9 feet; thence 
        South 75 degrees 28 minutes West, 1051.4 feet, to the center 
        line of County Road No. 169; thence North 04 degrees 39 minutes 
        East, 282.7 feet along the center line of County Road No. 169 to 
        the point of beginning:  Including all riparian rights to the 
        contained 3.4 acres more or less and subject to existing road 
        easements; all in Section 29; 
           (5) the Southeast Quarter of the Southeast Quarter, the 
        Northeast Quarter of the Southeast Quarter, the Southeast 
        Quarter of the Northeast Quarter, and the Northeast Quarter of 
        the Northeast Quarter, all in Section 30; and 
           (6) the West 15 acres of the Northwest Quarter of the 
        Northwest Quarter of Section 32. 
           Subd. 3.  [LAND PURCHASES.] The commissioner may not use 
        money in the land acquisition account under Minnesota Statutes, 
        section 94.165, to purchase land for Greenleaf state park.  The 
        commissioner may only purchase land for Greenleaf state park 
        with money appropriated specifically for that purpose. 
           Sec. 11.  [ADDITIONS TO STATE PARKS.] 
           Subdivision 1.  [85.012] [Subd. 13.] [CHARLES A. LINDBERGH 
        STATE PARK, MORRISON COUNTY.] The following areas are added to 
        Charles A. Lindbergh State Park, Morrison County: 
           (1) Lots 3, 4, 5, 6, 7, 8, 9, 10, and 11, Block 1, Little 
        Elk Meadows, according to the plat on file in the office of the 
        registrar of titles, Morrison County, Minnesota, excepting 
        one-half of all mineral and mineral rights; and 
           (2) that part of Government Lots 2 and 3, Section 5, 
        Township 129, Range 29, Morrison County, Minnesota, described as 
        follows:  Commencing at the found 1/2" iron pipe which marks the 
        position of the northwest corner of said Section 5, as 
        perpetuated since 1936 by the Morrison County Highway 
        Department; thence East on an assumed bearing along the north 
        line of the Northwest Quarter of said Section 5, as determined 
        by found monuments, a distance of 2423.44 feet to a found 1" 
        iron pipe monument; thence South 36 degrees 16 minutes West 
        along the approximate centerline of said County Road 213 a 
        distance of 1479.77 feet; thence South 24 degrees 14 minutes 
        West along said approximate centerline a distance of 278.26 
        feet; thence South 15 degrees 56 minutes 36 seconds West along 
        said approximate centerline a distance of 86.47 feet to its 
        intersection with said common line between Nelson and 
        Schoessling; thence South 89 degrees 38 minutes 12 seconds East 
        a distance of 34.26 feet to a found 5/8" diameter iron pin on 
        the easterly right-of-way line of said County Road 213, the 
        point of beginning; thence South 15 degrees 56 minutes 36 
        seconds West along said easterly right-of-way line a distance of 
        1246.81 feet to a 1/2" diameter iron pipe monument capped RLS 
        10832 which bears South 74 degrees 38 minutes 37 seconds East a 
        distance of 33.00 feet from a found 1/2" iron pin set by Lehman 
        in his 1948 survey at the approximate centerline of said County 
        Road 213; thence South 14 degrees 52 minutes 10 seconds West 
        along said easterly line of County Road 213 a distance of 338.93 
        feet to a 1/2" iron pipe monument capped RLS 10832 which bears 
        South 41 degrees 39 minutes 13 seconds East a distance of 39.56 
        feet from a found 1/2" diameter iron pin set by Lehman in said 
        survey at the approximate centerline of said County Road 213; 
        thence continuing South 14 degrees 52 minutes 10 seconds West 
        along said easterly right-of-way line a distance of 44 feet, 
        more or less, to the northerly bank of the Little Elk River, 
        said bank coinciding with the shoreline; thence southeasterly 
        963 feet, more or less, along said northerly bank of the Little 
        Elk River to its confluence with the Mississippi River; thence 
        northerly along the bank and shoreline of said Mississippi River 
        a distance of 2807 feet, more or less, to its intersection with 
        the said common line between Nelson and Schoessling; thence 
        North 89 degrees 53 minutes 26 seconds West along said common 
        line a distance of 7 feet, more or less, to a found 1/2" 
        diameter iron pipe monument capped RLS 3091, one of four 
        consecutive monuments set on said common line by Dean Anderson 
        in his survey dated February 15, 1973; thence continuing North 
        89 degrees 53 minutes 26 seconds West on said common line a 
        distance of 370.36 feet to a found 1/2" diameter iron pipe 
        monument capped RLS 3091; thence continuing on said common line 
        North 89 degrees 59 minutes 46 seconds West a distance of 242.55 
        feet to a found 1/2" diameter iron pipe monument capped RLS 
        3091; thence continuing on said common line North 89 degrees 59 
        minutes 51 seconds West a distance of 387.43 feet to a 1/2" 
        diameter iron pipe monument capped RLS 3091; thence continuing 
        on said common line North 89 degrees 38 minutes 12 seconds West 
        a distance of 239.51 feet to a 5/8" diameter iron pin set by 
        Lehman in his 1948 survey, the point of beginning, and there 
        terminating, all in accordance with the survey of Ron Murphy, 
        RLS 10832, dated January 20, 1983.  Containing 67.80 acres, more 
        or less, this description is intended to describe all real 
        estate described in Certificates of Title Numbers 848 and 855. 
           Subd. 2.  [85.012] [Subd. 14.] [CROW WING STATE PARK, CROW 
        WING, CASS, AND MORRISON COUNTIES.] The following area is added 
        to Crow Wing State Park, all in Section 18, Township 44, Range 
        31, Crow Wing County:  the Northwest Quarter of the Northeast 
        Quarter except the South 330 feet thereof, and the Northeast 
        Quarter of the Northeast Quarter except the South 330 feet 
        thereof; except that part of the Northeast Quarter of the 
        Northeast Quarter described as follows:  Commencing at the 
        northeast corner of the said Northeast Quarter of the Northeast 
        Quarter; thence West 660 feet on the north line of said 
        Northeast Quarter of the Northeast Quarter; thence South 330 
        feet parallel to the east line of said Northeast Quarter of the 
        Northeast Quarter; thence East 660 feet to the east line of said 
        Northeast Quarter of the Northeast Quarter (said line being 
        parallel to the north line to said Northeast Quarter of the 
        Northeast Quarter); thence North on the east line of said 
        Northeast Quarter of the Northeast Quarter 330 feet to the point 
        of beginning. 
           Subd. 3.  [85.012] [Subd. 19.] [FORESTVILLE MYSTERY CAVE 
        STATE PARK, FILLMORE COUNTY.] (a) The following areas are added 
        to Forestville State Park, all in Township 102 North, Range 12 
        West, Fillmore County: 
           (1) that part of the Southeast Quarter of the Northwest 
        Quarter and that part of the Northeast Quarter of the Southwest 
        Quarter of Section 25, described as follows:  Beginning at the 
        northeast corner of said Southeast Quarter of the Northwest 
        Quarter; thence on a bearing, based on the 1983 Fillmore County 
        Coordinate System (1986 Adjustment), of South 00 degrees 06 
        minutes 09 seconds West along the east line of said Southeast 
        Quarter of the Northwest Quarter 1314.86 feet to the northeast 
        corner of said Northeast Quarter of the Southwest Quarter; 
        thence continuing South 00 degrees 06 minutes 09 seconds West 
        along the east line of said Northeast Quarter of the Southwest 
        Quarter 1306.56 feet to the southeast corner of said Northeast 
        Quarter of the Southwest Quarter; thence South 89 degrees 26 
        minutes 26 seconds West along the south line of said Northeast 
        Quarter of the Southwest Quarter 13.50 feet; thence North 00 
        degrees 54 minutes 48 seconds West 1441.34 feet; thence North 02 
        degrees 12 minutes 23 seconds West 298.58 feet; thence North 01 
        degree 21 minutes 29 seconds West 483.51 feet; thence North 00 
        degrees 04 minutes 31 seconds East 397.73 feet to the north line 
        of said Southeast Quarter of the Northwest Quarter; thence North 
        89 degrees 09 minutes 53 seconds East along said north line 
        63.60 feet to the point of beginning; and 
           (2) that part of the West Half of the Northeast Quarter and 
        that part of the Northwest Quarter of the Southeast Quarter of 
        Section 25, described as follows:  Commencing at the northwest 
        corner of said West Half of the Northeast Quarter being an in 
        place Fillmore County cast iron monument; thence on a bearing, 
        based on the 1983 Fillmore County Coordinate System (1986 
        Adjustment), of South 00 degrees 06 minutes 09 seconds West 
        along the west line of said West Half of the Northeast Quarter 
        1169.24 feet to a 3/4" by 24" rebar with a plastic cap stamped 
        "MN DNR LS 17003" (DNR MON) and the point of beginning; thence 
        North 89 degrees 57 minutes 41 seconds East 1000.00 feet to a 
        DNR MON; thence South 00 degrees 06 minutes 09 seconds West 
        1638.29 feet to a DNR MON; thence South 89 degrees 57 minutes 41 
        seconds West 1000.00 feet to the west line of said Northwest 
        Quarter of the Southeast Quarter and a DNR MON; thence North 00 
        degrees 06 minutes 09 seconds East along the west line of said 
        Northwest Quarter of the Southeast Quarter and along the west 
        line of said West Half of the Northeast Quarter 1638.29 feet to 
        the point of beginning. 
           (b) The commissioner shall manage this addition as a state 
        park as provided in Minnesota Statutes, section 86A.05, 
        subdivision 2, but in addition to other activities authorized in 
        Forestville Mystery Cave State Park, the commissioner shall 
        allow hunting. 
           Subd. 4.  [85.012] [Subd. 22.] [GEORGE H. CROSBY MANITOU 
        STATE PARK, LAKE COUNTY.] The following area is added to George 
        H. Crosby Manitou State Park, Lake County, all in Township 58 
        North, Range 6 West:  the Southeast Quarter of the Northwest 
        Quarter of Section 14; the Southwest Quarter of the Northeast 
        Quarter and the Southeast Quarter of the Northwest Quarter of 
        Section 15; the Southwest Quarter of the Northwest Quarter and 
        the Northwest Quarter of the Southwest Quarter of Section 23; 
        and the Southwest Quarter of the Northwest Quarter of Section 26.
           Subd. 5.  [85.012] [Subd. 29.] [ITASCA STATE PARK, HUBBARD, 
        CLEARWATER, AND BECKER COUNTIES.] The following areas are added 
        to Itasca State Park, all in Township 142, Range 36, Becker 
        County: 
           (1) Bureau of Land Management Island County Control Number 
        7 within Twin Island Lake and located in that part of the 
        Southwest Quarter of the Southwest Quarter of Section 5; that 
        part of the Southeast Quarter of the Southeast Quarter of 
        Section 6; that part of the Northeast Quarter of the Northeast 
        Quarter of Section 7; and that part of the Northwest Quarter of 
        the Northwest Quarter of Section 8; and 
           (2) Bureau of Land Management Island County Control Number 
        8 within Twin Island Lake and located in that part of the 
        Northeast Quarter of the Northeast Quarter of Section 7. 
           Subd. 6.  [85.012] [Subd. 41.] [MAPLEWOOD STATE PARK, OTTER 
        TAIL COUNTY.] The following area is added to Maplewood State 
        Park, Otter Tail County:  Bureau of Land Management Island 
        County Control Number 86 within South Arm Lida Lake and located 
        in that part of the Northwest Quarter of the Southeast Quarter 
        of Section 32, Township 136, Range 42. 
           Subd. 7.  [85.012] [Subd. 44.] [MONSON LAKE STATE PARK, 
        SWIFT COUNTY.] The following areas are added to Monson Lake 
        State Park, Swift County: 
           (1) Bureau of Land Management Island County Control Number 
        001 within Monson Lake and located in that part of Government 
        Lot 1, Section 2, Township 121, Range 37; and 
           (2) that part of Government Lot 1, Section 35, Township 122 
        North, Range 37 West, Swift County, Minnesota, described as 
        follows:  Commencing at Government Meander Corner No. 2 (being 
        the meander corner common to Section 35 and Section 36, Township 
        122 North, Range 37 West); thence southwesterly a distance of 
        170 feet along the government meander line in said Section 35 to 
        the POINT OF BEGINNING; thence continuing southwesterly, a 
        distance of 445 feet along said meander line to the meander 
        corner; thence West, a distance of 328 feet along the south line 
        of said Government Lot 1 to the meander corner; thence 
        northwesterly, a distance of 214 feet along the meander line in 
        said Section 35; thence northeasterly, a distance of 620 feet to 
        the point of beginning. 
           Subd. 8.  [85.012] [Subd. 55a.] [TETTEGOUCHE STATE PARK, 
        LAKE COUNTY.] The following areas are added to Tettegouche State 
        Park, Lake County: 
           (1) the West Half of the Southwest Quarter of the Northwest 
        Quarter of the Southwest Quarter lying south and west of the 
        Baptism River in Section 3; the East Half of the Southeast 
        Quarter lying south and west of the Baptism River in Section 4; 
        that part of the Northeast Quarter of the Northwest Quarter in 
        Section 10, lying south of the centerline of State Highway No. 
        1, except that part thereof lying north of a line parallel to 
        and 560 feet northerly distant from the south line of said 
        Northeast Quarter of the Northwest Quarter, and between two 
        lines parallel to and distant, respectively, 100 feet and 420 
        feet westerly distant from the east line of said Northeast 
        Quarter of the Northwest Quarter; the West 450 feet of the 
        Southeast Quarter of the Southwest Quarter of Section 11, 
        excepting therefrom, the South 425 feet; all that part of 
        Government Lot Two (2), Section Fifteen (15), Township Fifty-six 
        (56), Range Seven (7) West, lying southeasterly of U.S. No. 
        Highway 61, EXCEPT that part of Government Lot Two, described as 
        follows:  Commencing at the quarter corner between said Sections 
        15 and 22, 56-7, thence running East along section line between 
        said Sections 15 and 22 to a point 503.0 feet East of said 
        quarter corner, thence turning an angle of 75 degrees 00 minutes 
        to the left and running 425.0 feet to a point designated by a 
        2-inch iron pipe, being the point of beginning, thence running 
        in a northwesterly direction to a point on the west boundary 
        line of Government Lot Two, which will be approximately 970.0 
        feet north of the quarter corner between said Sections 15 and 
        22, thence North along west boundary line of Government Lot Two 
        to the northwest corner of Government Lot Two, thence East along 
        north boundary line of Government Lot Two approximately 240.0 
        feet, thence in southeasterly direction to a point on east side 
        of point of rocks projecting into Lake Superior marked with an 
        X, thence in a southwesterly direction along the shore of Lake 
        Superior to the point of beginning.  (X mark on rock being in a 
        line making a deflection angle of 45 degrees 51 minutes to the 
        left with east and west section line from a point on the section 
        line 503.0 feet East of the quarter corner between Sections 15 
        and 22 and being approximately 830 feet from said point on said 
        section line.)  Said parcel to contain ten (10) acres and to be 
        subject to existing right-of-way easements and all mineral and 
        gravel rights heretofore granted, AND EXCEPT that part of 
        Government Lot Two, described as follows:  Commencing at the 
        northeast corner of Government Lot Two marked by an iron pipe, 
        set in 1964 by Tofte, Lice #2888, thence South 89 degrees 49 
        minutes 00 seconds West, assumed bearing, along the north line 
        of said Lot 2 a distance of 599.2 feet; thence southwesterly 
        105.69 feet along a non-tangential curve to the right, radius of 
        2864.79 feet, delta angle of 02 degrees 06 minutes 50 seconds, 
        chord of 105.69 feet, chord bearing of South 32 degrees 14 
        minutes 35 seconds West; thence South 33 degrees 18 minutes 00 
        seconds West 193.70 feet to the Point of Beginning of the parcel 
        herein described:  thence returning North 33 degrees 18 minutes 
        00 seconds East 20.17 feet; thence South 70 degrees 21 minutes 
        14 seconds East 51.45 feet; thence South 62 degrees 07 minutes 
        40 seconds East 389.11 feet; thence South 81 degrees 45 minutes 
        44 seconds East 100.18 feet; thence South 72 degrees 51 minutes 
        58 seconds East 181 feet more or less to the shore of Lake 
        Superior; thence southwesterly along said shore 265 feet more or 
        less to the intersection with a line bearing South 47 degrees 37 
        minutes 00 seconds East from the point of beginning; thence 
        North 47 degrees 37 minutes 00 seconds West 697 feet more or 
        less to the point of beginning; all that part of the Southeast 
        Quarter of the Southwest Quarter of Section Fifteen (15), 
        Township Fifty-six (56), Range Seven (7) West, lying 
        southeasterly of U.S. Highway No. 61; all that part of 
        Government Lot 1 lying southeast of U.S.T.H. No. 61; the North 
        Half of Government Lot 2; and that part of the Southwest Quarter 
        of the Northwest Quarter lying south and east of Highway 61 in 
        Section 22; all in Township 56 North, Range 7 West; and 
           (2) that part of the Northeast Quarter of the Southwest 
        Quarter and that part of the Southeast Quarter of the Southwest 
        Quarter lying east of County Road 4 in Section 31, Township 57 
        North, Range 7 West. 
           Sec. 12.  [ADDITIONS TO CUYUNA COUNTRY STATE RECREATION 
        AREA.] 
           [85.013] [Subd. 5c.] [CUYUNA COUNTRY STATE RECREATION AREA, 
        CROW WING COUNTY.] The following areas are added to Cuyuna 
        Country State Recreation Area, Crow Wing County:  
           The South Half of the Southwest Quarter of the Southwest 
        Quarter of Section 2 and the North Half of the Northwest Quarter 
        of the Northwest Quarter of Section 11, all in Township 46 
        North, Range 29 West, EXCEPT that part of the South Half of the 
        Southwest Quarter of the Southwest Quarter of Section 2 and that 
        part of the North Half of the Northwest Quarter of the Northwest 
        Quarter of Section 11 described as follows:  Commencing at the 
        southwest corner of said Section 2; thence North 88 degrees 57 
        minutes 16 seconds East, assumed bearing, 30.00 feet along the 
        south line of said Section 2 to the easterly right-of-way line 
        of County State-Aid Highway 30, the point of beginning; thence 
        North 2 degrees 21 minutes 01 second West 123.00 feet along said 
        easterly right-of-way line; thence North 83 degrees 57 minutes 
        East 70.27 feet; thence easterly 48.57 feet along a tangential 
        curve concave to the south having a radius of 270.63 feet and a 
        central angle of 10 degrees 17 minutes; thence South 85 degrees 
        46 minutes East 145.77 feet; thence South 76 degrees 24 minutes 
        East 191.00 feet; thence South 7 degrees 28 minutes 16 seconds 
        West 385.13 feet; thence North 77 degrees 48 minutes West 43.50 
        feet; thence North 86 degrees 55 minutes 30 seconds West 360.00 
        feet to the easterly right-of-way line of County State-Aid 
        Highway 30; thence North 1 degree 35 minutes 26 seconds East 
        278.06 feet along said easterly right-of-way line to the point 
        of beginning; AND ALSO EXCEPT that part of the South Half of the 
        Southwest Quarter of the Southwest Quarter of Section 2 and that 
        part of the North Half of the Northwest Quarter of the Northwest 
        Quarter of Section 11, both in Township 46 North, Range 29 West, 
        described as follows:  Commencing at the southwest corner of 
        said Section 2; thence North 88 degrees 57 minutes 16 seconds 
        East, assumed bearing, 30.00 feet along the south line of said 
        Section 2 to the easterly right-of-way line of County State-Aid 
        Highway 30; thence North 2 degrees 21 minutes 01 second West 
        189.14 feet along said easterly right-of-way line to the point 
        of beginning; thence North 83 degrees 57 minutes East 66.00 
        feet; thence easterly 60.42 feet along a tangential curve 
        concave to the south having a radius of 336.63 feet and a 
        central angle of 10 degrees 17 minutes; thence South 85 degrees 
        46 minutes East 151.18 feet; thence South 76 degrees 24 minutes 
        East 363.20 feet; thence easterly 59.36 feet along a tangential 
        curve concave to the north having a radius of 135.70 feet and a 
        central angle of 25 degrees 03 minutes 46 seconds; thence South 
        13 degrees 51 minutes East 328.09 feet not tangent to the last 
        described curve; thence South 87 degrees 52 minutes 02 seconds 
        East 159.65 feet; thence North 11 degrees 39 minutes East 297.32 
        feet; thence North 42 degrees 20 minutes East 156.65 feet; 
        thence North 22 degrees 30 minutes East 340.27 feet to the east 
        line of said South Half of the Southwest Quarter of the 
        Southwest Quarter; thence North 1 degree 42 minutes 42 seconds 
        West 189.62 feet along the east line of said South Half of the 
        Southwest Quarter of the Southwest Quarter to the northeast 
        corner of said South Half of the Southwest Quarter of the 
        Southwest Quarter; thence South 88 degrees 46 minutes 22 seconds 
        West 1236.37 feet along the north line of said South Half of the 
        Southwest Quarter of the Southwest Quarter to the easterly 
        right-of-way line of said County State-Aid Highway 30; thence 
        South 2 degrees 21 minutes 01 second East 470.58 feet along said 
        easterly right-of-way line to the point of beginning; AND ALSO 
        EXCEPT that part of the South Half of the Southwest Quarter of 
        the Southwest Quarter of Section 2 and that part of the North 
        Half of the Northwest Quarter of the Northwest Quarter of 
        Section 11, both in Township 46, Range 29, Crow Wing County, 
        Minnesota, described as follows:  Commencing at the southwest 
        corner of said Section 2; thence North 88 degrees 57 minutes 16 
        seconds East, assumed bearing 30.00 feet along the south line of 
        said Section 2 to the easterly right-of-way line of County 
        State-Aid Highway 30; thence North 2 degrees 21 minutes 01 
        second West 123.00 feet along said easterly right-of-way line; 
        thence North 83 degrees 57 minutes East 70.27 feet; thence 
        easterly 48.57 feet along a tangential curve concave to the 
        south having a radius of 270.63 feet and a central angle of 10 
        degrees 17 minutes; thence South 85 degrees 46 minutes East 
        145.77 feet; thence South 76 degrees 24 minutes East 191.00 feet 
        to the point of beginning; thence continuing South 76 degrees 24 
        minutes East 166.79 feet; thence easterly 90.97 feet along a 
        tangential curve concave to the north having a radius of 201.70 
        feet and a central angle of 25 degrees 50 minutes 33 seconds; 
        thence South 13 degrees 51 minutes East 262.06 feet not tangent 
        to the last described curve; thence South 54 degrees 56 minutes 
        West 221.00 feet; thence North 77 degrees 48 minutes West 188.50 
        feet; thence North 7 degrees 28 minutes 16 seconds East 385.13 
        feet to the point of beginning; AND ALSO EXCEPT that part of the 
        South Half of the Southwest Quarter of the Southwest Quarter of 
        Section 2 and that part of the North Half of the Northwest 
        Quarter of the Northwest Quarter of Section 11, both in Township 
        46, Range 29, Crow Wing County, Minnesota, described as 
        follows:  Commencing at the southwest corner of said Section 2; 
        thence North 88 degrees 57 minutes 16 seconds East, assumed 
        bearing 30.00 feet along the south line of said Section 2 to the 
        easterly right-of-way line of County State-Aid Highway 30; 
        thence North 2 degrees 21 minutes 01 second West 123.00 feet 
        along said easterly right-of-way line to the point of beginning; 
        thence North 83 degrees 57 minutes East 70.27 feet; thence 
        easterly 48.57 feet along a tangential curve concave to the 
        south having a radius of 270.63 feet and a central angle of 10 
        degrees 17 minutes; thence South 85 degrees 46 minutes East 
        145.77 feet; thence South 76 degrees 24 minutes East 357.79 
        feet; thence easterly 90.97 feet along a tangential curve 
        concave to the north having a radius of 201.70 feet and a 
        central angle of 25 degrees 50 minutes 33 seconds; thence North 
        13 degrees 51 minutes West 66.03 feet not tangent to the last 
        described curve; thence westerly 59.36 feet along a 
        non-tangential curve concave to the north having a radius of 
        135.70 feet and a central angle of 25 degrees 03 minutes 46 
        seconds; thence North 76 degrees 24 minutes West 363.20 feet; 
        thence North 85 degrees 46 minutes West 151.18 feet; thence 
        westerly 60.42 feet along a tangential curve concave to the 
        south having a radius of 336.63 feet and a central angle of 10 
        degrees 17 minutes; thence South 83 degrees 57 minutes West 
        66.00 feet to the easterly right-of-way line of said County 
        State-Aid Highway 30; thence South 2 degrees 21 minutes 01 
        second East 66.14 feet along said easterly right-of-way line to 
        the point of beginning. 
           Sec. 13.  [AITKIN DRAINAGE AND CONSERVANCY DISTRICT.] 
           Notwithstanding Laws 1987, chapter 239, sections 137 and 
        140, the Aitkin Drainage and Conservancy District is 
        reestablished pursuant to Minnesota Statutes 1986, chapter 111, 
        for the purpose of maintaining the Mississippi River diversion 
        channel. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 14.  [ADDITIONS TO BELTRAMI ISLAND STATE FOREST.] 
           [89.021] [Subd. 5.] [BELTRAMI ISLAND STATE FOREST.] The 
        following areas are added to Beltrami Island State Forest: 
           (1) the Southwest Quarter of the Southeast Quarter of 
        Section 29, Township 156 North, Range 37 West, Beltrami County; 
        and 
           (2) the North Half of the Northeast Quarter; the Southwest 
        Quarter of the Northeast Quarter; and the North Half of the 
        Northwest Quarter, all in Section 17, Township 156 North, Range 
        37 West, Beltrami County. 
           Sec. 15.  [ADDITIONS TO STATE WILDLIFE MANAGEMENT AREAS.] 
           Subdivision 1.  [97A.133] [Subd. 34.] [LEE WILDLIFE 
        MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
        to Lee Wildlife Management Area:  the Southwest Quarter of the 
        Northwest Quarter of Section 35, Township 155 North, Range 38 
        West, Beltrami County. 
           Subd. 2.  [97A.133] [Subd. 44.] [RED LAKE WILDLIFE 
        MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
        to Red Lake Wildlife Management Area:  the Northeast Quarter of 
        Section 28, Township 155 North, Range 32 West, Beltrami County. 
           Subd. 3.  [97A.133] [Subd. 50.] [SAW-WHET WILDLIFE 
        MANAGEMENT AREA, BELTRAMI COUNTY.] The following area is added 
        to Saw-Whet Wildlife Management Area:  the Southwest Quarter of 
        the Southwest Quarter; and the Southwest Quarter of the 
        Southeast Quarter, all in Section 8, Township 155 North, Range 
        37 West, Beltrami County. 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 1 to 5, 7 to 12, 14, and 15 are effective July 1, 
        2004. 

                                   ARTICLE 3
                                STATE LAND SALES
           Section 1.  Laws 1999, chapter 161, section 31, subdivision 
        3, is amended to read: 
           Subd. 3.  [APPRAISAL.] (a) An appraisal shall be made in 
        accordance with Minnesota Statutes, section 282.01, subdivision 
        3, except as modified by this subdivision.  Improvements that 
        are owned by the lessee shall be appraised separately.  
           (b) An appraiser shall be selected by the county.  The 
        appraiser selected shall meet the minimal appraisal standards 
        established by the federal Farmers Home Administration or the 
        federal Veterans Administration, and be licensed under Minnesota 
        Statutes, section 82B.03, and be approved by the department of 
        natural resources to appraise the property to be sold. 
           (c) The costs of appraisal shall be allocated by the county 
        to the lots offered for sale and the successful purchaser on 
        each lot shall reimburse the county for the appraisal costs 
        allocated to the lot purchased.  If no one purchases a lot, the 
        county is responsible for the appraisal cost.  
           (d) If a leaseholder disagrees with the appraised value of 
        the land or leasehold improvements, the leaseholder may select 
        an appraiser that meets the qualifications set forth herein to 
        reappraise the land and improvements.  The leaseholder must give 
        notice of its intent to object to the appraised value of the 
        land and buildings within ten days of the date of the mailing or 
        service of notice under subdivision 2, paragraph (a).  The 
        reappraisal must be delivered by the leaseholder to the county 
        auditor within 60 days of the date of mailing or service of 
        notice of appraised value under subdivision 2, paragraph (a), or 
        the initial appraisal shall be conclusive.  The leaseholder is 
        responsible for the costs of this reappraisal.  If the parcel is 
        reappraised within the time set forth herein and the county and 
        the leaseholder fail to agree on the value of the land and 
        improvements within 30 days of the date of delivery of the 
        reappraisal by a date set by the county, each of the appraisers 
        shall agree upon the selection of a third appraiser to conduct a 
        third appraisal that shall be conclusive as to the value of 
        the land and improvements.  The cost of this appraisal shall be 
        paid equally by the county and the leaseholder. 
           Sec. 2.  Laws 1999, chapter 161, section 31, subdivision 5, 
        is amended to read: 
           Subd. 5.  [SURVEY.] (a) Itasca county shall cause each lot 
        to be surveyed according to Minnesota Statutes, chapter 505, and 
        the Itasca county platting and subdivision ordinance, each lot 
        prior to offering it for sale by a licensed surveyor.  
           (b) The costs of survey shall be allocated by the county to 
        the lots offered for sale and the successful purchaser on each 
        lot shall reimburse the county for the survey costs allocated to 
        the lot purchased.  If no one purchases the lot, the county is 
        responsible for the survey costs.  All surveying must be 
        conducted by a licensed surveyor.  
           Sec. 3.  Laws 1999, chapter 161, section 31, subdivision 8, 
        is amended to read: 
           Subd. 8.  [SUNSET.] This section expires five years after 
        the day of final enactment on June 1, 2007. 
           Sec. 4.  Laws 2003, First Special Session chapter 13, 
        section 16, is amended to read: 
           Sec. 16.  [PRIVATE SALE OF CONSOLIDATED CONSERVATION LAND; 
        BELTRAMI COUNTY.] 
           (a) Notwithstanding the classification and public sale 
        provisions of Minnesota Statutes, chapters 84A and 282, the 
        commissioner of natural resources may sell to Waskish township 
        the consolidated conservation state's interest in land that is 
        described in paragraph (c) under the remaining provisions of 
        Minnesota Statutes, chapters 84A and 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general and must provide that the land reverts to the 
        state if it is not used for public airport purposes.  The 
        conveyance must reserve an easement to ensure public access and 
        state management access to the public and private lands to the 
        west and south.  The attorney general may make necessary changes 
        in the legal description to correct errors and ensure accuracy.  
        The consideration for the conveyance must not be less than the 
        appraised value of the land and timber and any survey costs.  
        Proceeds shall be disposed of according to Minnesota Statutes, 
        chapter 84A.  No payments made under State Lease Numbered 
        144-015-0558 will be refunded, but payments made may be credited 
        against the payments due. 
           (c) The land and interests in land that may be conveyed is 
        located in Beltrami county and is described as:  the Southwest 
        Quarter of the Northeast Quarter; the Northeast Quarter of the 
        Southwest Quarter; the North 10 acres of the Southeast Quarter 
        of the Southwest Quarter; and the West 10 acres of the Northwest 
        Quarter of the Southeast Quarter, all in Section 20, Township 
        154 North, Range 30 West. 
           Sec. 5.  [DELETION FROM GEORGE WASHINGTON STATE FOREST.] 
           [89.021] [Subd. 21.] [GEORGE WASHINGTON STATE FOREST.] The 
        following area is deleted from George Washington State Forest, 
        Itasca County:  that part of the Northeast Quarter of the 
        Southeast Quarter of Section 1, Township 59 North, Range 25 
        West, lying northeasterly of County State-Aid Highway 7, 
        containing 1.20 acres more or less. 
           Sec. 6.  [DELETION FROM FOOT HILLS STATE FOREST.] 
           [89.021] [Subd. 19.] [FOOT HILLS STATE FOREST.] The 
        following area is deleted from Foot Hills State Forest, Cass 
        County:  Lot Four (4), Section 8, Township 140 North, Range 31 
        West, except that part of the E. 300 ft. thereof lying N. of the 
        centerline of the Hiram Township road known as Mountain Maple 
        Lane.  A more exact legal description will not be known until a 
        survey is completed to delineate the sale parcel from the water 
        access site to be retained.  The portion of the lot to be sold 
        at public sale does not contain lakeshore.  The lakeshore will 
        be retained as part of the water access site. 
           Sec. 7.  [DELETION FROM PAUL BUNYAN STATE FOREST.] 
           [89.021] [Subd. 38.] [PAUL BUNYAN STATE FOREST.] The 
        following area is deleted from Paul Bunyan State Forest, Hubbard 
        County:  that part of the Southwest Quarter of the Northwest 
        Quarter (SW1/4-NW1/4), Section 36, Township 142 North, Range 34 
        West, described as follows:  Beginning at the W. quarter corner 
        of Section 36, Township 142, Range 34, proceed N. on the section 
        line 824.25 ft., thence S. 89 deg. 56 min. 44 sec. E. 100 ft., 
        thence S. parallel to the section line 824.25 ft., thence N. 89 
        deg. 56 min. 44 sec. W. 100 ft. to the point of beginning, 
        comprising 1.89 acres. 
           Sec. 8.  [DELETION FROM MISSISSIPPI RECREATIONAL RIVER LAND 
        USE DISTRICT IN WRIGHT COUNTY.] 
           The following area is deleted from the Mississippi 
        Recreational River Land Use District in Wright County:  that 
        part of government lots 1 and 2 of Section 14, Government lot 1 
        of Section 23, and the southeast quarter of Section 15, Township 
        121 North, Range 23 West, lying beyond 300 feet of the ordinary 
        high water level of the Mississippi River. 
           Sec. 9.  [PRIVATE SALE OF TAX-FORFEITED LAND; AITKIN 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, Aitkin 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general for no less than the appraised value of the 
        land. 
           (c) The land to be sold is located in Aitkin County and is 
        described as:  208 feet by 208 feet in Government Lot 3, as in 
        Document #176347, Section 33, Township 45 North, Range 27 West 
        (PIN 11-0-074000). 
           (d) The sale corrects an inadvertent trespass and the 
        county has determined that the county's land management 
        interests would best be served if the lands were returned to 
        private ownership. 
           Sec. 10.  [PRIVATE SALE OF CONSOLIDATED CONSERVATION LAND; 
        AITKIN COUNTY.] 
           (a) Notwithstanding the classification and public sale 
        provisions of Minnesota Statutes, chapters 84A and 282, the 
        commissioner of natural resources may sell to Shamrock Township 
        the consolidated conservation land described in paragraph (c) 
        under the remaining provisions of Minnesota Statutes, chapters 
        84A and 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The consideration for the conveyance must be 
        for no less than the appraised value of the land and timber and 
        any survey costs.  Proceeds shall be disposed of according to 
        Minnesota Statutes, chapter 84A. 
           (c) The land to be sold is located in Aitkin County and is 
        described as:  that part of the Southeast Quarter of the 
        Southeast Quarter lying north of the township road in Section 9, 
        Township 49 North, Range 23 West. 
           Sec. 11.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; AITKIN COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Aitkin County may sell the tax-forfeited 
        land bordering public water that is described in paragraph (c), 
        under the remaining provisions of Minnesota Statutes, chapter 
        282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  
           (c) The land to be sold is located in Aitkin County and is 
        described as:  the East 400 feet of the West 1,150 feet of 
        Government Lot 7, Section 3, Township 51 North, Range 23 West 
        (PIN 06-0-005200). 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 12.  [PUBLIC SALE OF SURPLUS STATE LAND; BELTRAMI 
        COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, section 94.10, the 
        commissioner of natural resources may sell by public sale, for 
        less than the appraised value, the surplus land that is 
        described in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes in the legal description to correct errors and ensure 
        accuracy. 
           (c) The land to be sold is located in Beltrami County and 
        is described as:  the Southeast Quarter of the Northeast Quarter 
        of Section 32 and the Southwest Quarter of the Northwest Quarter 
        of Section 33, all in Township 147 North, Range 34 West. 
           (d) The land described in paragraph (c) is a former gravel 
        pit and the commissioner of natural resources has determined 
        that the land is no longer necessary for natural resource 
        purposes.  The land has been offered at public auction and 
        received no bids. 
           Sec. 13.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; CHISAGO COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Chisago County may sell the 
        tax-forfeited land bordering public water that is described in 
        paragraph (c), under the remaining provisions of Minnesota 
        Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  
           (c) The land to be sold is located in Chisago County and is 
        described as: 
           (1) an undivided 4/7th interest in and to that part of 
        Government Lot 3 described as follows:  Beginning at the 
        southwest corner of the recorded plat of Bergquist's Beach; 
        thence South 64 degrees 16 minutes East, along the southerly 
        line of Bergquist's Beach, a distance of 216 feet more or less 
        to the high water line of North Center Lake; thence southerly 
        along the high water line of the bay to North Center Lake, a 
        distance of 300 feet more or less, to the point of intersection 
        with the southerly projection of the westerly line of 
        Bergquist's Beach; thence North 16 degrees 18 minutes East along 
        said southerly projection of the westerly line of Bergquist's 
        Beach a distance of 50 feet more or less to the point of 
        beginning, Section 21, Township 34, Range 21; 
           (2) all that part of the Northeast Quarter of the Northwest 
        Quarter lying south of the centerline of County Ditch No. 5, 
        Section 9, Township 34, Range 21; 
           (3) the West Half of the Northeast Quarter of the Southeast 
        Quarter, Section 32, Township 33, Range 21; 
           (4) that part of the Northwest Quarter of the Southeast 
        Quarter described as follows:  Beginning at the center of 
        Section 32; thence South along the north/south quarter line of 
        Section 32, 446 feet; thence East deflecting 90 degrees to the 
        left 126.20 feet to the point of beginning on the easterly 
        right-of-way line of Trunk Highway No. 61; thence continuing 
        East along the easterly projection of the last described course 
        469.20 feet to a point 595.40 feet East of the west line of the 
        Northwest Quarter of the Southeast Quarter; thence North 
        deflecting 90 degrees to the left 178.20 feet; thence East 
        deflecting 90 degrees to the right 725 feet more or less to the 
        east line of the Northwest Quarter of the Southeast Quarter of 
        Section 32; thence southerly along said east line 1,059.00 feet 
        more or less to the southeast corner of the Northwest Quarter of 
        the Southeast Quarter of Section 32; thence westerly along the 
        south line of the Northwest Quarter of Southeast Quarter of 
        Section 32, 1,125.00 feet more or less to the easterly 
        right-of-way line of Trunk Highway No. 61; thence northerly 
        along said easterly right-of-way line 903.00 feet more or less 
        to the point of beginning.  Except that part beginning at the 
        center of Section 32; thence South 446 feet; thence East 595.40 
        feet; thence North 178.20 feet to the point of beginning; thence 
        continuing East 725 feet; thence South 301 feet; thence West 725 
        feet; thence North 301 feet to the point of beginning, Section 
        32, Township 33, Range 21; 
           (5) that part of the Northeast Quarter of the Northeast 
        Quarter described as follows:  Beginning at the northeast corner 
        of Section 29; thence West 49 feet; thence South 156 feet; 
        thence East 49 feet; thence North 156 feet to the point of 
        beginning; and also beginning 3 rods west of the northeast 
        corner of the Northeast Quarter of the Northeast Quarter of 
        Section 29; thence West 140 feet; thence South to the center of 
        Goose Creek; thence following the center of Goose Creek to a 
        point directly South of the point of beginning; thence North to 
        the point of beginning, Section 29, Township 36, Range 21; and 
           (6) Outlot E of Kates Estates. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 14.  [LAND EXCHANGE; COOK COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, section 94.344, 
        subdivision 3, Cook County may, with the approval of the Land 
        Exchange Board as required under the Minnesota Constitution, 
        article XI, section 10, and according to the remaining 
        provisions of Minnesota Statutes, sections 94.342 to 94.348, 
        determine the value of the land to be exchanged that is 
        described in paragraph (b) by including the value of the 
        buildings and improvements located on the land. 
           (b) The land to be obtained by Cook County from the United 
        States in the exchange is all in Section 30, Township 66 North, 
        Range 4 West, described as: 
           (1) that part of Government Lot 6 described as follows: 
           Commencing at the point created by the intersection of the 
           north line of Lot 6 at the west line of the public landing 
           as the point of beginning; thence South on the west line of 
           said public landing tract a distance of 100.00 feet 
           (measured at right angles); thence West parallel to the 
           north line of Lot 6 for 215.00 feet; thence due North 
           100.00 feet to the north line of Lot 6; thence East on the 
           north line of Lot 6 a distance of 225.00 feet, more or 
           less, to the point of beginning, which is also described as:
           Assuming the north boundary of said Government Lot 6 to lie 
           South 88 degrees 30 minutes 00 seconds East from the iron 
           pipe which is on the east end of said north boundary, then 
           North 88 degrees 30 minutes 00 seconds West along said 
           north boundary a distance of 384.75 feet to the point of 
           beginning; thence South 16 degrees 30 minutes 00 seconds 
           West a distance of 103.06 feet; thence North 88 degrees 30 
           minutes 00 seconds West a distance of 215.00 feet; thence 
           North 00 degrees 30 minutes 00 seconds East a distance of 
           100.00 feet to a point which lies on the north boundary; 
           thence South 88 degrees 30 minutes 00 seconds East along 
           said north boundary a distance of 239.93 feet back to the 
           point of beginning; and 
           (2) that part of Government Lot 7 described as follows: 
           Assuming the south boundary of Government Lot 7 to lie 
           South 88 degrees 30 minutes 00 seconds East and from the 
           iron pipe which is on the east end of said south boundary, 
           run North 88 degrees 30 minutes 00 seconds West along said 
           south boundary a distance of 346.53 feet to the point of 
           beginning; thence continue North 88 degrees 30 minutes 00 
           seconds West along said south boundary a distance of 388.17 
           feet; thence North 03 degrees 16 minutes 36 seconds West a 
           distance of 183.65 feet; thence North 23 degrees 01 minute 
           18 seconds East a distance of 113.59 feet; thence North 68 
           degrees 27 minutes 48 seconds East a distance of 225.73 
           feet; thence North 75 degrees 27 minutes 57 seconds East a 
           distance of 88.62 feet; thence North 82 degrees 47 minutes 
           51 seconds East to the shore of Saganaga Lake; thence 
           southwesterly along the shoreline to a point which lies on 
           the north boundary of the county public landing; thence 
           South 38 degrees 19 minutes 12 seconds West along said 
           northerly boundary of the county public landing a distance 
           of 90 feet, more of less; thence South 57 degrees 28 
           minutes 36 seconds West along said northerly boundary of 
           the county public landing a distance of 169.25 feet; thence 
           South 47 degrees 38 minutes 48 seconds East along the 
           southwesterly boundary of the county public landing a 
           distance of 92.42 feet back to the point of beginning. 
           (c) Notwithstanding Minnesota Statutes, section 282.018, 
        subdivision 1, Cook County may sell the land bordering public 
        water that is described in paragraph (b) under the remaining 
        provisions of Minnesota Statutes, chapter 282. 
           Sec. 15.  [PUBLIC SALE OF SURPLUS STATE LAND; COOK COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45, 
        94.09, and 94.10, the commissioner of natural resources may sell 
        the surplus land and buildings bordering on public waters that 
        are described in paragraph (c). 
           (b) The sale must be in a form approved by the attorney 
        general for consideration no less than the appraised value of 
        the land and buildings.  The conveyance shall reserve an 
        easement to the state along the waterfront for angling and 
        management purposes and an access easement across said lands to 
        ensure ingress and egress to the public for access to the Flute 
        Reed River, which is a designated trout stream.  The exact 
        location and legal description of the easements shall be 
        determined by the commissioner of natural resources. 
           (c) The land to be sold is located in Cook County and 
        described as:  Part of the Northeast Quarter of the Northwest 
        Quarter, Section 20, Township 62 North, Range 4 East, beginning 
        at the quarter post between Sections 17 and 20; thence running 
        South 16 rods (264 feet); thence West 10 rods (165 feet); thence 
        North 16 rods (264 feet); thence East 10 rods (165 feet) to the 
        place of beginning.  That portion of the Northeast Quarter of 
        the Northwest Quarter, Section 20, Township 62 North, Range 4 
        East, described as follows:  Starting from a point on the east 
        line of said forty-acre tract 264 feet South of the northeast 
        corner thereof as the point of beginning; thence West 165 feet 
        along the south line of the tract of land heretofore deeded by 
        the grantors herein to the town of Hovland, which deed is 
        recorded in the office of the register of deeds of Cook County, 
        in Book R of Deeds on page 262 thereof; thence West five feet; 
        thence South 115 feet more or less to the north bank of Flute 
        Reed River; thence southeasterly along the north bank of said 
        river 214 feet more or less to the east line of the above 
        described forty-acre tract; thence North along said east line 
        237 feet more or less to the point of beginning. 
           (d) The parcel described in paragraph (c) is removed from 
        the Grand Portage State Forest. 
           (e) The parcel described in paragraph (c) is a former 
        forestry office site and it has been determined that this site 
        is no longer needed for natural resources purposes. 
           Sec. 16.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; CROW WING COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Crow Wing County may sell the 
        tax-forfeited land bordering public water that is described in 
        paragraph (c), under the remaining provisions of Minnesota 
        Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  
           (c) The land to be sold is located in Crow Wing County and 
        is described as:  undivided 1/3 interest in the Northwest 
        Quarter of the Southeast Quarter, Section 8, Township 45 North, 
        Range 28 West. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 17.  [CONVEYANCE OF TAX-FORFEITED LAND BORDERING ON 
        PUBLIC WATER OR WETLANDS; HENNEPIN COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45, 
        103F.535, and 282.018, subdivision 1, Hennepin County may 
        subdivide a larger tract of tax-forfeited land bordering Avalon 
        Channel, Black Lake, Lake Minnetonka, and described as Lot 18, 
        also Lots 29 to 32 inclusive, Block 24, "Seton," situated in the 
        city of Mound and may sell the portion of the parcel of 
        tax-forfeited lands bordering public water or natural wetlands 
        that is described in paragraph (c) according to this section. 
           (b) The conveyance must be in a form approved by the 
        attorney general and must be subject to restrictions imposed by 
        the commissioner of natural resources, including but not limited 
        to the requirement that no new structures, other than docks, 
        shall be allowed on the portion of the parcel Hennepin County 
        may sell, and further requirement that the balance of the 
        tax-forfeited parcel not sold shall remain in city park status.  
        The land described in paragraph (c) must be sold under the 
        alternate sale provisions in Minnesota Statutes, section 282.01, 
        subdivision 7a. 
           (c) The parcel of land that may be sold is described as: 
        that part of Lot 29, Block 24, "Seton," lying easterly of the 
        northerly extension of the west line of the East 10 feet of Lot 
        4, Block 1, Avalon. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and upon delivery by the city of Mound 
        to the Hennepin County auditor a deed reconveying portions of 
        tax-forfeited land to the state of Minnesota for that portion 
        described in paragraph (c) that may be sold by Hennepin County. 
           Sec. 18.  [PRIVATE SALE OF TAX-FORFEITED LAND BORDERING 
        12.28 PUBLIC WATER; HENNEPIN COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, and the public sale provisions of 
        Minnesota Statutes, chapter 282, Hennepin County may sell the 
        tax-forfeited land described in paragraph (c), to the persons 
        making payment for the land to the city of Independence, without 
        restrictions or limitations, under the remaining provisions of 
        Minnesota Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general for the appraised value of the land.  
        Notwithstanding Minnesota Statutes, sections 282.08 and 282.09, 
        the proceeds from the sale authorized under paragraph (a) shall 
        be apportioned as follows: 
           (1) 20 percent of the gross proceeds of the sale shall be 
        retained by Hennepin County for deposit in the county forfeited 
        tax sale fund; and 
           (2) 80 percent of the gross proceeds from the sale must be 
        paid to the commissioner of natural resources.  Money received 
        by the commissioner, under this section, shall be deposited in 
        the water recreation account in the natural resources fund and 
        is appropriated to the commissioner for grants to political 
        subdivisions for public access or other natural resource 
        improvements to Lake Sarah in Hennepin County. 
           (c) The land to be sold is located in Hennepin County and 
        is described as:  Lot 17, Block 1, Beamish Shores Second 
        Addition. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           (e) The city of Independence may repay all or a portion of 
        the prior payment made to the city of Independence for the land. 
           Sec. 19.  [PRIVATE SALE OF TAX-FORFEITED LAND; ITASCA 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, Itasca 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c) to an adjoining landowner to resolve an 
        encroachment. 
           (b) The conveyance must be in a form approved by the 
        attorney general for consideration no less than the appraised 
        value of the land. 
           (c) The land to be sold is located in Itasca County and is 
        described as:  the North 150 feet of the East 175 feet of 
        Government Lot 8, Section 21, Township 55 North, Range 26 West. 
           (d) The county has determined that the county's land 
        management interests would best be served if the parcel was 
        returned to private ownership. 
           Sec. 20.  [CONVEYANCE OF TAX-FORFEITED LAND; LAKE COUNTY.] 
           (a) Notwithstanding any law to the contrary, after approval 
        by the Lake County Board, the commissioner of revenue shall 
        convey for no consideration to the city of Beaver Bay the 
        state's interest in the tax-forfeited land described in 
        paragraph (c), free and clear of any encumbrances or 
        restrictions. 
           (b) The conveyance must be in a form approved by the 
        attorney general. 
           (c) The land to be conveyed is located in Lake County and 
        is described as:  The Northeast Quarter of the Northwest Quarter 
        and the Southeast Quarter of the Northwest Quarter, Section 22, 
        Township 55 North, Range 8 West. 
           (d) The conveyance will provide clear title to the city of 
        Beaver Bay by removing a reversionary interest held by the state 
        and allow the city to use the land for low-income housing. 
           Sec. 21.  [PRIVATE SALE OF CONSOLIDATED CONSERVATION LAND; 
        LAKE OF THE WOODS COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, chapters 84A, 94, 
        and 282, the commissioner of natural resources may sell by 
        private sale the surplus land described in paragraph (c) 
        according to this section. 
           (b) The sale must be in a form approved by the attorney 
        general and may be for less than the appraised value.  The 
        attorney general may make necessary changes in the legal 
        description to correct errors and ensure accuracy.  Proceeds 
        shall be disposed of according to Minnesota Statutes, chapter 
        84A. 
           (c) The land to be sold is located in Lake of the Woods 
        County and described as:  1 acre, more or less, located in the 
        North Half of the North Half of Northeast Quarter of the 
        Northwest Quarter, Section 23, Township 160 North, Range 33 
        West, known as Potamo Cemetery. 
           (d) The land described in paragraph (c) is a burial ground 
        and thus not suitable for natural resource purposes. 
           Sec. 22.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; MAHNOMEN COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Mahnomen County may sell the 
        tax-forfeited land bordering public water that is described in 
        paragraph (c), under the remaining provisions of Minnesota 
        Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general for no less than the appraised value of the 
        land. 
           (c) The land to be sold is located in Mahnomen County and 
        is described as:  Parcel Number R15.009.0600 in Government Lot 
        2, Section 9, Township 144 North, Range 41 West. 
           (d) The county has determined that the county's land 
        management interests would best be served if the land was 
        returned to private ownership. 
           Sec. 23.  [PUBLIC SALE OF TRUST FUND LAND BORDERING PUBLIC 
        WATER; MILLE LACS COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, section 92.45, the 
        commissioner of natural resources may sell by public sale the 
        school trust fund land bordering public water that is described 
        in paragraph (c), under the remaining provisions in Minnesota 
        Statutes, chapter 92.  
           (b) The conveyance shall be in a form approved by the 
        attorney general for consideration no less than the appraised 
        value of the land.  The attorney general may make necessary 
        changes to the legal description to correct errors and ensure 
        accuracy. 
           (c) The land that may be sold is located in Mille Lacs 
        County and is described as follows:  Lot 2, Section 16, Township 
        42 North, Range 26 West. 
           (d) The commissioner of natural resources has determined 
        that the land is no longer needed for any natural resource 
        purpose and that the state's land management interests would 
        best be served if the land was sold. 
           Sec. 24.  [PUBLIC SALE OF SURPLUS STATE LAND BORDERING 
        PUBLIC WATER; MILLE LACS COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, section 92.45, the 
        commissioner of natural resources may sell by public sale the 
        surplus state land bordering public water that is described in 
        paragraph (c) under the provisions of Minnesota Statutes, 
        chapter 94, or Laws 2003, First Special Session chapter 1, 
        article 1, section 31.  
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal description to correct errors and ensure 
        accuracy. 
           (c) The land that may be sold is located in Mille Lacs 
        County and is described as:  Government Lots 1 and 2 of Section 
        21, Township 43 North, Range 27 West, except the south 560 feet 
        of said Government Lot 2 lying between U.S. Highway No. 169 and 
        Mille Lacs Lake; also except the north 205.97 feet of said 
        Government Lot 1 lying west of the westerly right-of-way line of 
        U.S. Highway No. 169; also except that portion taken for trunk 
        highway purposes in addition to the existing highway, together 
        with all right of access being the right of ingress to and 
        egress from all that portion of the above-described property to 
        Trunk Highway No. 169. 
           (d) The commissioner has determined that the state's land 
        management interests would best be served if the land was sold. 
           Sec. 25.  [CONVEYANCE OF SURPLUS STATE LAND; OLMSTED 
        COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 94.09 to 
        94.16, the commissioner of administration shall convey to the 
        city of Rochester for no consideration the surplus land that is 
        described in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general. 
           (c) The land to be conveyed is located in Olmsted County 
        and is described as: 
           All that part of the Southwest Quarter and all that part of 
           the West Half of the Southeast Quarter, in Section 5, 
           Township 106 North, Range 13 West, Olmsted County, 
           Minnesota which lies south of Trunk Highway No. 14; also, 
           all that part of the Northwest Quarter of the Southeast 
           Quarter in Section 6, Township 106 North, Range 13 West, 
           Olmsted County, Minnesota which lies south of Trunk Highway 
           No. 14; containing in all approximately 175 acres. 
           (d) The commissioner has determined that the land is no 
        longer needed for any state purpose and that the state's land 
        management interests would best be served if the land was 
        conveyed to and used by the city of Rochester. 
           Sec. 26.  [CONVEYANCE OF SURPLUS STATE LAND; REDWOOD 
        COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 16A.695, 
        16C.23, 94.09 to 94.16, or other law to the contrary, the 
        commissioner of administration and the Minnesota Historical 
        Society may convey to the Lower Sioux Indian community in 
        Redwood County, for no consideration, the surplus land described 
        in paragraph (d). 
           (b) For the sole purposes of this act, the Lower Sioux 
        Indian community is a public agency and there is a state need to 
        convey the property described in paragraph (d) to be used by the 
        community for essential governmental purposes, including the 
        operation of programs for the interpretation of Minnesota 
        history.  
           (c) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes in the legal description of paragraph (d) to correct 
        errors and ensure accuracy.  
           (d) The land to be conveyed is located in Redwood County, 
        consists of approximately 242 acres, and is described as: 
           (1) land owned by the Minnesota Historical Society: 
           (i) Government Lots 5 and 6, in Section 5, Township 112 
        North, Range 34 West; 
           (ii) the Northwest Quarter of the Northwest Quarter of 
        Section 8, Township 112 North, Range 34 West; and 
           (iii) all that part of the East Half of the Northwest 
        Quarter of Section 8, Township 112 North, Range 34 West, lying 
        north of Redwood County Highway No. 2; and 
           (2) land owned by the state of Minnesota: 
           (i) Government Lots 2 and 3 of Section 8, Township 112 
        North, Range 34 West, EXCEPTING THEREFROM all that part of 
        Government Lot 2 of said Section 8 described as follows: 
        Beginning at a point on the south line of said Government Lot 2 
        a distance of 350.00 feet easterly of the southwest corner of 
        said Government Lot 2; thence along the south line of said 
        Government Lot 2 on an assumed bearing of North 89 degrees 58 
        minutes East for 422.40 feet; thence North 6 degrees 58 seconds 
        East for 115.00 feet; thence South 78 degrees 18 minutes 34 
        seconds West for 451.09 feet to the point of beginning; 
           (ii) the North 8 acres of the Southeast Quarter of the 
        Northeast Quarter of Section 8, Township 112 North, Range 34 
        West; 
           (iii) the North 6.76 acres of Government Lot 7 in Section 
        9, Township 112 North, Range 34 West; 
           (iv) all that part of the Northeast Quarter of the 
        Northwest Quarter of Section 8, Township 112 North, Range 34 
        West, lying south of Redwood County Highway No. 2; and 
           (v) all that part of the Southwest Quarter of the Northeast 
        Quarter of Section 8, Township 112 North, Range 34 West, 
        described as follows:  Beginning at the northwest corner of the 
        Southwest Quarter of the Northeast Quarter of said Section 8; 
        thence along the north line of the Southwest Quarter of the 
        Northeast Quarter of said Section 8 on an assumed bearing of 
        North 89 degrees 58 minutes East for 270.90 feet; thence South 
        10 degrees 40 minutes 37 seconds West for 158.80 feet to the 
        northerly right-of-way of County Road 2; thence North 62 degrees 
        18 minutes 09 seconds West along the northerly right-of-way line 
        of County Road 2 for 272.73 feet to the north quarter line of 
        said Section 8; thence North 29.13 feet to the point of 
        beginning. 
           [EFFECTIVE DATE.] This section is effective only after 
        approval by resolution of the Redwood County Board of 
        Commissioners and the Sherman Township Board of Supervisors. 
           Sec. 27.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; ROCK COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Rock County may sell the tax-forfeited 
        land bordering public water that is described in paragraph (c), 
        under the remaining provisions of Minnesota Statutes, chapter 
        282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  A deed restriction shall be a part of the 
        sale that prevents any tillage or building construction on the 
        property, and grazing shall be limited to stocking rates 
        approved by the USDA Natural Resources Conservation Service. 
           (c) The land to be sold is located in Rock County and is 
        described as:  the North 580.08 feet of the South 2112.08 feet 
        of the East 875 feet of the SE 1/4 of Section 26, Township 104 
        North, Range 44 West. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 28.  [CONVEYANCE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; ROSEAU COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, and the public sale provisions of 
        Minnesota Statutes, chapter 282, Roseau County may convey to a 
        public entity for no consideration the tax-forfeited land 
        bordering public water that is described in paragraph (c) or may 
        sell the land to a public entity for the appraised value. 
           (b) The conveyance or sale must be in a form approved by 
        the attorney general.  A conveyance for no consideration must 
        provide that the land reverts to the state if the public entity 
        stops using the land for a public purpose. 
           (c) The land to be conveyed is located in Roseau County and 
        is described as: 
           (1) Lot 2, Soler Township, Section 2, Township 162 North, 
        Range 43 West; 
           (2) Lot 3, Soler Township, Section 2, Township 162 North, 
        Range 43 West; 
           (3) Lot 4, Soler Township, Section 2, Township 162 North, 
        Range 43 West; 
           (4) the Northeast Quarter of the Southeast Quarter, Section 
        18, Township 163 North, Range 44 West; 
           (5) the Northwest Quarter of the Southwest Quarter, Section 
        27, Township 163 North, Range 44 West; 
           (6) the Southwest Quarter of the Southwest Quarter, Section 
        27, Township 163 North, Range 44 West; and 
           (7) the Northwest Quarter of the Northwest Quarter, Section 
        34, Township 163 North, Range 44 West.  
           (d) The county has determined that the county's land 
        management interests would best be served if the land were 
        conveyed to a public entity. 
           Sec. 29.  [CONVEYANCE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; ROSEAU COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, and the public sale provisions of 
        Minnesota Statutes, chapter 282, Roseau County may convey to a 
        public entity for no consideration the tax-forfeited land 
        bordering public water that is described in paragraph (c), sell 
        to a public entity for the appraised value, or sell by public 
        sale under the remaining provisions of Minnesota Statutes, 
        chapter 282, the lands bordering public waters described in 
        paragraph (c). 
           (b) The conveyance or sale must be in a form approved by 
        the attorney general and reserve an easement for potential trail 
        purposes and a road easement across the Southeast Quarter of the 
        Northeast Quarter of Section 18, Township 163, Range 44, to 
        provide access to state lands and the Roseau River Access. 
           (c) The land to be conveyed is located in Roseau County and 
        described as: 
           (1) the Northeast Quarter of the Northeast Quarter, Section 
        18, Township 163 North, Range 44 West; 
           (2) the Southeast Quarter of the Northeast Quarter, Section 
        18, Township 163 North, Range 44 West; 
           (3) the Northwest Quarter of the Southeast Quarter, Section 
        18, Township 163 North, Range 44 West; 
           (4) the Southwest Quarter of the Southeast Quarter, Section 
        18, Township 163 North, Range 44 West; 
           (5) the Southeast Quarter of the Southeast Quarter, Section 
        18, Township 163 North, Range 44 West; and 
           (6) the Southwest Quarter of the Northwest Quarter, Section 
        27, Township 163 North, Range 44 West. 
           (d) The county has determined that the county's best 
        interests would be served if the land were conveyed to an 
        outside interest subject to the trail and road easements. 
           Sec. 30.  [CONVEYANCE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; ROSEAU COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, Roseau County may sell the tax-forfeited 
        land described in paragraph (c), under the remaining provisions 
        of Minnesota Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general for no less than the appraised value of the 
        land. 
           (c) The land to be sold is located in Roseau County and is 
        described as:  the Northwest Quarter of the Northeast Quarter of 
        Section 20, Township 163 North, Range 36 West. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 31.  [PUBLIC SALE OF SURPLUS STATE LAND BORDERING 
        PUBLIC WATER; ST. LOUIS COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, section 92.45, the 
        commissioner of natural resources may sell by public sale the 
        surplus state land bordering public water that is described in 
        paragraph (c), under the remaining provisions of Minnesota 
        Statutes, chapter 92. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal description to correct errors and ensure 
        accuracy. 
           (c) The land that may be sold is located in St. Louis 
        County and is described as follows:  Outlot A, Lake Leander 
        Homesite Plat No. 1, Section 16, Township 60 North, Range 19 
        West. 
           (d) The conveyance shall reserve an access easement across 
        the land to ensure access to Lot 11, Block 1 of Lake Leander 
        Homesite Plat No. 1. 
           (e) The commissioner has determined that the state's land 
        management interests would best be served if the land was sold. 
           Sec. 32.  [PUBLIC SALE OF TAX-FORFEITED LAND BORDERING 
        PUBLIC WATER; ST. LOUIS COUNTY.] 
           (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
        282.018, subdivision 1, St. Louis County may sell the 
        tax-forfeited land bordering public water that is described in 
        paragraph (c), under the remaining provisions of Minnesota 
        Statutes, chapter 282. 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal descriptions to correct errors and ensure 
        accuracy. 
           (c) The land to be sold is located in St. Louis County and 
        is described as: 
           (1) NE1/4 of SW1/4, Section 19, T52N, R20W; 
           (2) NE1/4 of NE1/4 and NW1/4 of NE1/4 ex part wly of 
        centerline of County Rd #44, Section 22, T56N, R12W; 
           (3) that part of NE1/4 of SE1/4 lying S of Floodwood River, 
        Section 19, T52N, R20W; 
           (4) NW1/4 of SE1/4 ex W1/2 and E165 ft of W1/2 of NW1/4 of 
        SE1/4, Section 5, T51N, R13W; 
           (5) NE1/4 of SW1/4 inc E1/2 of NW1/4 of SW1/4, Section 32, 
        T52N, R14W; 
           (6) that part of SW1/4 of SE1/4 lying W of county rd ex sly 
        2 ac, Section 21, T56N, R18W; and 
           (7) Lot 7 ex part lying S and E of centerline of Co Rd 
        #609, Section 1, T56N, R16W. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           (e) Easements:  for the NE1/4 of NE1/4 and NW1/4 of NE1/4 
        ex part wly of centerline of County Road #44, Section 22, T56N, 
        R12W and the NW1/4 of SE1/4 ex W1/2 and E165 ft of W1/2 of NW1/4 
        of the SE1/4 of Section 5, T51N, R13W, the county shall grant an 
        easement to the state to the bed of the designated trout stream 
        or tributary and a strip of land no wider than will be enclosed 
        between the top edge of the streambank and a line parallel 
        thereto and 66 feet distance therefrom on either side of the 
        stream as it crosses St. Louis County tax-forfeited land for the 
        purpose of fish stocking and the development of fish habitat in 
        the described area, including tree planting, fencing, erosion 
        control, installation of instream structures, posting of signs 
        and other improvements as deemed necessary, and angling by the 
        public in the described area; and, For the NE1/4 of SW1/4, 
        Section 19, T52N, R20W and that part of NE1/4 of SE1/4 lying S 
        of Floodwood River, Section 19, T52N, R20W, the county shall 
        grant to the state an easement to the bed of the stream and a 
        strip of land no wider than will be enclosed between the top 
        edge of the streambank and a line parallel thereto and 50 feet 
        distance therefrom on either side of the Floodwood River as it 
        crosses the St. Louis County tax-forfeited land for the purpose 
        of fish stocking and the development of fish habitat in the 
        described area, including tree planting, fencing, erosion 
        control, installation of instream structures, posting of signs 
        and other improvements as deemed necessary, and angling by the 
        public in the described area; and, For the NE1/4 of SW1/4 inc 
        E1/2 of NW1/4 of SW1/4, Section 32, T52N, R14W, the county shall 
        grant to the state an easement to the bed of the stream and a 
        strip of land no wider than will be enclosed between the top 
        edge of the streambank and a line parallel thereto and 50 feet 
        distance therefrom on either side of the inlet stream to Fish 
        Lake Reservoir as it crosses the St. Louis County tax-forfeited 
        land for the purpose of fish stocking and the development of 
        fish habitat in the described area, including tree planting, 
        fencing, erosion control, installation of instream structures, 
        posting of signs and other improvements as deemed necessary, and 
        angling by the public in the described area; and for Lot 7 ex 
        part lying S and E of centerline of Co Rd #609, Section 1, T56N, 
        R16W, the county shall grant to the state an easement of 66 feet 
        from the ordinary high water mark of Mud Hen Lake for the 
        purpose of providing protection of riparian vegetation, angler 
        access for fishing, and Department of Natural Resources access 
        for habitat improvement. 
           Sec. 33.  [PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, St. Louis 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal descriptions to correct errors and ensure 
        accuracy. 
           (c) The land to be sold is located in St. Louis County and 
        is described as: 
           (1) part of SE1/4 of SE1/4 lying within 33 ft on each side 
        of a line comm at E1/4 cor of sec; thence wly on E-W1/4 line 
        with an assumed azimuth of 269 degrees 06 minutes 51 seconds 
        384.05 ft; thence at an azimuth of 204 degrees 41 minutes 21 
        seconds 1179.68 ft; thence at an azimuth of 205 degrees 41 
        minutes 50 seconds 288 ft to N line of forty and the point of 
        beg; thence continue on previous azimuth 660 ft to W line of 
        forty, Section 11, T51N, R15W; 
           (2) NW1/4 of NE1/4 ex part lying E of a line 33 ft ely of a 
        line beg on N line at an azimuth of 269 degrees 6 minutes 49 
        seconds 361.54 ft from NE cor; thence at an azimuth of 205 
        degrees 41 minutes 0 seconds 1217.71 ft; thence at an azimuth of 
        128 degrees 43 minutes 18 seconds 362 ft to S line and ex part 
        lying W of a line which is 33 ft W of above described line, 
        Section 14, T51N, R15W; and 
           (3) that part of NE1/4 of SE1/4 lying within 33 ft ely and 
        33 ft wly of following desc line comm at E quarter cor of Sect 
        11; thence wly on E-W quarter line which has an assumed azimuth 
        (0 degrees N) of 269 degrees 6 minutes 51 seconds for 384.05 ft 
        to pt of beg of desc line; thence at an azimuth of 204 degrees 
        41 minutes 21 seconds for 1179.68 ft; thence at an azimuth of 
        205 degrees 41 minutes 50 seconds for 288 ft to S line of forty, 
        Section 11, T51N, R15W.  The county may sell the undivided 17/32 
        interest in the Northeast Quarter of the Southeast Quarter and 
        the Northwest Quarter of the Southeast Quarter, Section 34, 
        Township 59 North, Range 18 West, by private sale 
        notwithstanding Minnesota Statutes, section 282.01, subdivision 
        8, and the public sale provisions of Minnesota Statutes, chapter 
        282, under the remaining provisions of Minnesota Statutes, 
        chapter 282, subject to the approval of the commissioner. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 34.  [PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, St. Louis 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal descriptions to correct errors and ensure 
        accuracy.  For the undivided 17/32 interest in the Northeast 
        Quarter of the Southeast Quarter and the Northwest Quarter of 
        the Southeast Quarter, all in Section 34, Township 59 North, 
        Range 18 West, the conveyance must provide that the land is 
        subject to the terms and conditions of State Taconite Iron Ore 
        Mining Lease Numbered T-5036.  The commissioner of natural 
        resources may approve sale upon a determination that the 
        taconite resource has been removed from the land to be sold. 
           (c) The land to be sold is located in St. Louis County and 
        is described as: 
           (1) NW1/4 of SE1/4, Section 34, T59N, R18W (17/32 undivided 
        interest); 
           (2) NE1/4 of SE1/4, Section 34, T59N, R18W; 
           (3) NE1/4 of SW1/4, Section 34, T59N, R18W; and 
           (4) SE1/4 of NW1/4, Section 34, T59N, R18W. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership for stockpiling use. 
           Sec. 35.  [PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, St. Louis 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general.  The attorney general may make necessary 
        changes to the legal descriptions to correct errors and ensure 
        accuracy. 
           (c) The land to be sold is located in St. Louis County and 
        is described as: 
           (1) the easterly 240.00 feet of the southerly 380.00 feet 
        of the Northwest Quarter of the Northeast Quarter of Section 4, 
        Township 62 North, Range 13 West, St. Louis County, Minnesota.  
        This parcel contains 2.08 acres more or less; and 
           (2) the westerly 360.00 feet of the southerly 380.00 feet 
        of the Northeast Quarter of the Northeast Quarter of Section 4, 
        Township 62 North, Range 13 West, St. Louis County, Minnesota.  
        This parcel contains 3.14 acres more or less. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 36.  [PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS 
        COUNTY.] 
           (a) Notwithstanding the public sale provisions of Minnesota 
        Statutes, chapter 282, or other law to the contrary, St. Louis 
        County may sell by private sale the tax-forfeited land described 
        in paragraph (c). 
           (b) The conveyance must be in a form approved by the 
        attorney general for a consideration of taxes due on the 
        property and any penalties, interest, and costs. 
           (c) The land to be sold is located in St. Louis County and 
        is described as: 
           NW 1/4 of NW 1/4 ex 14.98 ac at NW corner and ex 4.66 ac at 
        SW corner, Section 13, Township 61, Range 21, Town of Morcom, 
        460-10-2050. 
           (d) The county has determined that the county's land 
        management interests would best be served if the lands were 
        returned to private ownership. 
           Sec. 37.  [LCMR APPROPRIATION EXTENSION.] 
           The availability of the appropriation for the following 
        project is extended to June 30, 2006:  Laws 2001, First Special 
        Session chapter 2, section 14, subdivision 5, paragraph (b), 
        local grants initiative program, outdoor recreation grant for 
        the Lake Links Trail. 
           Sec. 38.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Presented to the governor May 18, 2004 
           Signed by the governor May 29, 2004, 4:40 p.m.