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

  

                         Laws of Minnesota 1988 

                        CHAPTER 628-S.F.No. 2214 
           An act relating to natural resources; authorizing the 
          commissioner to sell certain surplus lands to local 
          governments for local recreation or natural resource 
          purposes; authorizing the commissioner of natural 
          resources to convey road and flowage easements in 
          certain circumstances; transferring duties and powers 
          of county auditors and treasurers relating to sales of 
          certain classes of state land to the commissioner; 
          transferring the authority to issue state land patents 
          from the governor to the commissioner; specifying the 
          amount above appraised value that the commissioner may 
          pay when acquiring land; authorizing long-term leases 
          of state land for certain purposes; modifying certain 
          provisions of land exchange laws relating to 
          appraisals and fees; implementing exchanges of public 
          land authorized by the constitution; authorizing 
          exchange of school trust land located within a state 
          park; appointing an independent trustee and legal 
          counsel for land exchanges involving school trust 
          land; providing a procedure for exchange of Class B 
          land with Class A or Class C land; authorizing 
          governmental units to exchange land in the same manner 
          as private persons; amending Minnesota Statutes 1986, 
          sections 84.027, by adding a subdivision; 84.631; 
          85.015, subdivision 1; 92.16, subdivision 1; 92.23; 
          92.24; 92.26; 92.27; 92.29; 92.50, subdivision 1; 
          94.342, subdivision 3, and by adding subdivisions; 
          94.343, subdivision 3; 94.344, subdivisions 1, 3, 7, 
          and 10; 94.348; Minnesota Statutes 1987 Supplement, 
          section 105.392, subdivision 4; proposing coding for 
          new law in Minnesota Statutes, chapters 84 and 92; 
          repealing Minnesota Statutes 1986, section 92.25. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 84.027, is 
amended by adding a subdivision to read: 
    Subd. 10.  [SALE OF SURPLUS LANDS TO LOCAL GOVERNMENTS FOR 
RECREATIONAL OR NATURAL RESOURCES PURPOSES.] (a) The 
commissioner, with the approval of the state executive council, 
may sell the class of land or interest in land under paragraph 
(b) to a county, home rule charter or statutory city, town, or 
other governmental subdivision of the state for public use, 
including recreational or natural resource purposes.  
    (b) The commissioner may sell the class of land or interest 
in land that has been acquired by gift, purchase, or eminent 
domain and the commissioner has declared surplus.  The 
commissioner shall declare land surplus in writing and state the 
reasons why the land or interest in land is no longer needed.  
    (c) The commissioner shall appraise the land or interest in 
land before the land or interest in land is sold, and may sell 
the land or interest in land for less than the appraised value 
if the commissioner determines, in writing, that it is in the 
public interest.  
     (d) The commissioner shall convey the state's interest in 
the name of the state by quitclaim deed in a form approved by 
the attorney general.  The deed must reserve to the state 
minerals and mineral rights in the manner provided in sections 
93.01 and 93.02, and provide that the land or interest in land 
reverts to the state if the governmental subdivision acquiring 
the land or interest in land: 
     (1) fails to provide the public use intended on the 
property; 
    (2) allows a public use other than the public use agreed to 
by the commissioner at the time of conveyance without the 
written approval of the commissioner; or 
     (3) abandons the public use of the property.  
    Sec. 2.  Minnesota Statutes 1986, section 84.631, is 
amended to read:  
    84.631 [ROAD EASEMENTS ACROSS TRAILS ESTABLISHED ON 
ACQUIRED RAILROAD RIGHTS-OF-WAY STATE LANDS.] 
    The commissioner, on behalf of the state, may convey a road 
easement across any abandoned railroad right-of-way which has 
been acquired by the state for trail purposes, and which 
is state land under the commissioner's jurisdiction other than 
school trust land, to a private person requesting an easement 
for access to property owned by the person only if the following 
requirements are met:  (1) alternative methods to obtain access 
to the property have been sought and exhausted by the person 
seeking the easement through the establishment of a town or 
other local government road; and (2) the commissioner determines 
that the hardship to the person being deprived of access 
outweighs any adverse effects to the state-owned land caused by 
encumbering the state-owned land with a road easement.  On 
determining that an easement will be granted under this 
subdivision, (1) there are no reasonable alternatives to obtain 
access to the property; and (2) the exercise of the easement 
will not cause significant adverse environmental or natural 
resource management impacts.  The commissioner shall: 
     (1) require the applicant to pay the market value of the 
easement, and shall; 
     (2)  provide in that the easement that it shall revert 
reverts to the state in the event of nonuse.  The commissioner 
may; and 
    (3) impose other terms and conditions of use as necessary 
and appropriate under the circumstances.  
    Sec. 3.  [84.632] [CONVEYANCE OF UNNEEDED STATE FLOWAGE 
EASEMENTS.] 
    (a) Notwithstanding section 92.45, the commissioner of 
natural resources may, in the name of the state, release a 
flowage easement acquired by the state to a landowner whose 
property is burdened with the flowage easement if the flowage 
easement is not needed for state purposes.  
    (b) The entire, or a portion of a, flowage easement may be 
released by payment of consideration in an amount determined by 
the commissioner.  The conveyance must be by quitclaim deed in a 
form approved by the attorney general.  
    (c) Money received for the flowage easement shall be 
deposited in the account from which money was expended for 
purchase of the flowage easement.  
    Sec. 4.  Minnesota Statutes 1986, 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) The commissioner of natural resources, in the name of 
the state, may sell surplus lands not needed for trail purposes 
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. 5.  [92.025] [SCHOOL TRUST LAND DEFINITION.] 
    For purposes of chapters 92 and 94, "school trust land" 
means land granted by the United States for use of schools 
within each township, swampland granted to the state, and 
internal improvement land that are reserved for permanent school 
fund purposes under the Minnesota Constitution, article XI, 
section 8, and land exchanged, purchased, or granted to the 
permanent school fund. 
    Sec. 6.  Minnesota Statutes 1986, section 92.16, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CONTENTS; DEFAULT, RESALE.] At the time of 
the sale the commissioner shall execute, acknowledge, and 
deliver to the purchaser a certificate of sale, numbered and 
made assignable, certifying the description of the land sold, 
its quantity, the price per acre, the consideration paid and to 
be paid, and the time and terms of payment.  A certificate must 
not be delivered until the sum required by law to be paid at the 
time of the sale is paid to the treasurer of the county where 
the sale takes place.  The sum includes costs determined by the 
commissioner to be associated with the sale such as survey, 
appraisal, publication, deed tax, filing fee, and similar 
costs.  If the purchaser fails to pay the sum, the commissioner 
may immediately reoffer the land for sale, but no a bid may not 
be received accepted from the person so failing to pay the 
original offer.  
    Sec. 7.  Minnesota Statutes 1986, section 92.23, is amended 
to read:  
    92.23 [PAYMENTS; RECEIPTS; LIABILITY OF OFFICIALS.] 
    The holder of a certificate of sale may pay the treasurer 
of the county containing the land commissioner any amount due on 
the certificate.  The treasurer commissioner shall issue 
quadruplicate duplicate receipts specifying the date, the name 
and address of the person making the payment, the amount paid, 
whether for principal or interest, the fund to which it is 
applicable, and the number of the certificate.  The receipt must 
be countersigned by the auditor of the county, and has the same 
effect as if given by the state treasurer.  The county treasurer 
commissioner shall deliver one copy to the holder of the 
certificate, one to the county auditor, one to the commissioner, 
and retain one copy.  
    The liability under the official bonds of county treasurers 
and of their deputies and employees includes liability for the 
faithful performance of their duties under this section.  
    Sec. 8.  Minnesota Statutes 1986, section 92.24, is amended 
to read:  
    92.24 [MONEY PAID TO STATE TREASURER.] 
    The county treasurer must hold commissioner shall pay over 
all money received on account of certificates of sale subject to 
the order of the state treasurer for deposit as required by 
section 92.28 and other applicable laws.  On June 30 and 
December 31 each year and at other times when requested by the 
state treasurer, the county treasurer shall pay into the state 
treasury the money received since the last payment.  
    Sec. 9.  Minnesota Statutes 1986, section 92.26, is amended 
to read:  
    92.26 [STATEMENT OF SALES.] 
    Before May 2 each year the director commissioner shall 
transmit to each county treasurer who has executed and returned 
bond prepare a statement showing the lands sold in that each 
county, the classes to which they belong, the numbers of the 
certificates of sale, the name of the persons to whom each was 
issued, and the amount of principal and interest due on each 
certificate on June 1.  The director commissioner shall provide 
instructions and forms to enable the treasurer to carry out this 
chapter forward copies of the statement to the governor and to 
the commissioner of finance.  
    Sec. 10.  Minnesota Statutes 1986, section 92.27, is 
amended to read:  
    92.27 [COUNTY AUDITORS; DUTIES AND POWERS COMMISSIONER'S 
REPORT ON CLOSE OF SALE.] 
    At the time required by law to return abstracts of 
settlement to the commissioner or at any other time requested by 
the commissioner, the county auditor shall forward to the 
commissioner all duplicate receipts of principal, interest, or 
penalties delivered to the auditor, with a certified statement 
of collections by the county treasurer.  The certified statement 
must specify the amount of each item.  The county 
auditor commissioner or the commissioner's designated agent 
shall act as clerk of land sales made by the commissioner and 
may make sales when authorized by the commissioner, in which 
case the auditor's deputy shall act as clerk.  Immediately after 
the close of all sales, the county auditor commissioner shall 
prepare a report to the commissioner the description 
of describing each tract sold, the amount for which it was sold, 
and the amount paid.  For each day while so engaged the county 
auditor shall be paid $3.  Payment must be made out of any 
appropriation for the appraisal and sale of these lands.  
    Sec. 11.  Minnesota Statutes 1986, section 92.29, is 
amended to read:  
    92.29 [LAND PATENTS.] 
    The governor commissioner of natural resources shall sign 
and issue, in the name of the state and under the seal of the 
state, attested by the commissioner, a patent for the land 
described in any certificate of sale when it is presented 
endorsed with the certificate of the commissioner (1) that the 
principal and interest specified in it the certificate of sale 
and all taxes due on this the land have been paid and (2) that.  
The patent should issue shall be issued to the named patentee.  
The patentee shall be 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 named patentee 
purchaser's successor is any a person other than the original 
purchaser named in the certificate of sale.  If the certificate 
of sale has become lost or destroyed, an affidavit stating that 
fact must be submitted by the applicant for a patent.  
    Sec. 12.  Minnesota Statutes 1986, section 92.50, 
subdivision 1, is amended to read:  
    Subdivision 1.  [LEASE TERMS.] (a) The commissioner of 
natural resources may lease, at public or private vendue and at 
the prices and under the terms and conditions the commissioner 
may prescribe, any state-owned lands land under the 
commissioner's jurisdiction and control for the purpose of 
taking and removing: 
    (1) to remove sand, gravel, clay, rock, marl, peat, and 
black dirt, for storing; 
    (2) to store ore, waste materials from mines, or rock and 
tailings from ore milling plants,; 
    (3) for roads or railroads,; or 
    (4) for any other uses consistent with the interests of the 
state.  Except as otherwise provided in this subdivision, the 
term of 
    (b) The commissioner shall offer the lease at public or 
private sale for an amount and under terms and conditions 
prescribed by the commissioner.  Commercial leases for more than 
10 years and leases for removal of peat must be approved by the 
executive council.  
    (c) The lease term may not exceed ten years. except: 
    (1) leases of lands for storage sites for ore, waste 
materials from mines, or rock and tailings from ore milling 
plants, or for the removal of peat, or for the use of peat lands 
for agricultural purposes may not exceed a term of 25 years. 
Leases for the removal of peat must be approved by the executive 
council;  
    (2) leases for the use of peat lands for agricultural 
purposes may not exceed 21 years; and 
    (3) leases for commercial purposes, including major resort, 
convention center, or recreational area purposes, may not exceed 
a term of 40 years.  
    All (d) Leases must be subject to sale and leasing of the 
land for mineral purposes and contain a provision for 
cancellation for just cause at any time by the commissioner upon 
six months' written notice.  A longer notice period, not 
exceeding three years, may be provided in leases for storing 
ore, waste materials from mines or rock or tailings from ore 
milling plants.  The commissioner may determine the terms and 
conditions, including the notice period, for cancellation of a 
lease for the removal of peat and commercial leases.  
    (e) Money received from leases under this section must be 
credited to the fund to which the land belongs. 
    Sec. 13.  Minnesota Statutes 1986, section 94.342, 
subdivision 3, is amended to read:  
    Subd. 3.  [CLASS C.] No land specifically designated by law 
as a state park shall be given in exchange hereunder unless 
expressly authorized by the legislature. 
    No Land bordering on or adjacent to any meandered or other 
public waters and withdrawn from sale by law shall is Class C 
land.  Class C land may not be given in exchange unless 
expressly authorized by the legislature or unless through the 
same exchange the state acquires land on the same or other 
public waters in the same general vicinity affording at least 
equal opportunity for access to the waters and other riparian 
use by the public; provided, that any exchange with the United 
States or any agency thereof may be made free from this 
limitation upon condition that the state land given in exchange 
bordering on public waters shall be subject to reservations by 
the state for public travel along the shores as provided by 
Minnesota Statutes 1945, section 92.45, and that there shall be 
reserved by the state such additional rights of public use upon 
suitable portions of of such state land as the commissioner of 
natural resources, with the approval of the land exchange board, 
may deem necessary or desirable for camping, hunting, fishing, 
access to the water, and other public uses. 
    Sec. 14.  Minnesota Statutes 1986, section 94.342, is 
amended by adding a subdivision to read: 
    Subd. 4.  [STATE PARK LAND.] Land specifically designated 
by law as a state park may not be given in exchange unless the 
land is school trust land that is exchanged for Class A or Class 
C land located outside a state park. 
    Sec. 15.  Minnesota Statutes 1986, section 94.342, is 
amended by adding a subdivision to read: 
    Subd. 5.  [SCHOOL TRUST LAND.] School trust land may be 
exchanged with other state land only if the permanent school 
fund advisory committee is appointed as temporary trustee of the 
school trust land for purposes of the exchange.  The committee 
shall provide independent legal counsel to review the exchanges. 
     Sec. 16.  Minnesota Statutes 1986, section 94.342, is 
amended by adding a subdivision to read: 
    Subd. 6.  [REUNITING AND SEVERING OF SURFACE AND MINERAL 
INTERESTS.] (a) When making a land exchange, a goal of the land 
exchange board shall be to reunite the surface interest with the 
mineral interest whenever possible. 
    (b) If mineral interests are severed in an exchange, the 
land exchange board must consider the impact of severed mineral 
interests on minerals management. 
    Sec. 17.  Minnesota Statutes 1986, section 94.343, 
subdivision 3, is amended to read:  
    Subd. 3.  Except as otherwise herein provided, Class A land 
shall be exchanged only for land of at least substantially equal 
value to the state, as determined by the commissioner, with the 
approval of the board.  For the purposes of such determination, 
the commissioner shall cause the state land and the land 
proposed to be exchanged therefor to be examined and appraised 
by qualified state appraisers as provided in section 92.12 in 
like manner as state school trust land to be offered for sale; 
provided, that in exchanges with the United States or any agency 
thereof the examination and appraisal may be made in such manner 
as the land exchange board may direct.  The appraisers shall 
determine the fair market value of the lands involved, 
disregarding any minimum value fixed for state land by the state 
constitution or by law, and shall make a report thereof, 
together with such other pertinent information respecting the 
use and value of the lands to the state as they deem pertinent 
or as the commissioner or the board may require.  Such reports 
shall be filed and preserved in the same manner as other reports 
of appraisal of state lands.  The appraised values shall not be 
conclusive, but shall be taken into consideration by the 
commissioner and the board, together with such other matters as 
they deem material, in determining the values for the purposes 
of exchange.  
    Sec. 18.  Minnesota Statutes 1986, section 94.344, 
subdivision 1, is amended to read:  
    Subdivision 1.  Except as otherwise herein provided, any 
Class B land may, by resolution of the county board of the 
county in which where the land is situated located and with the 
unanimous approval of the land exchange board, may be exchanged 
for land of the United States any publicly held or privately 
owned land in the same county in the manner and subject to the 
conditions herein prescribed.  
    Sec. 19.  Minnesota Statutes 1986, section 94.344, 
subdivision 3, is amended to read:  
    Subd. 3.  Except as otherwise herein provided, Class B land 
shall may be exchanged only for land of at least substantially 
equal value or greater value to the state, as determined by the 
county board, with the approval of the commissioner and the land 
exchange board.  For an exchange involving Class B land for 
Class A or Class C land, the value of the lands shall be 
determined by the commissioner, with approval of the land 
exchange board.  For purposes of the determination, the 
commissioner shall appraise the state and tax-forfeited land 
proposed to be exchanged in the same manner as school trust 
land.  For the all other purposes of such determination, the 
county board shall appraise the state land and the land proposed 
to be exchanged therefor in the proposed exchange in like the 
same manner as tax-forfeited land to be offered for sale.  The 
appraised values shall not be conclusive, but shall be taken 
into consideration, together with such other matters as may be 
deemed material, in determining the values for the purposes of 
exchange.  
    Sec. 20.  Minnesota Statutes 1986, section 94.344, 
subdivision 7, is amended to read:  
    Subd. 7.  (a) Except for land described in paragraph (b), 
before giving final approval to any exchange of Class B land, 
the county board shall hold a public hearing thereon.  At least 
two weeks before the hearing the county auditor shall post in 
the auditor's office a notice thereof, containing a description 
of the lands affected.  
    (b) In an exchange of Class B land for Class A or Class C 
land the commissioner is responsible for holding the public 
hearing. 
    Sec. 21.  Minnesota Statutes 1986, section 94.344, 
subdivision 10, is amended to read:  
    Subd. 10.  After approval by the county board, every 
proposal for the exchange of Class B land shall be transmitted 
to the commissioner in such form and with such information as 
the commissioner may prescribe for consideration by the 
commissioner and by the board.  The county attorney's opinion on 
the title, with the abstract and other evidence of title, if 
any, shall accompany the proposal.  If the proposal be approved 
by the commissioner and the board and the title be approved by 
the attorney general, the same shall be certified to the 
commissioner of revenue, who shall execute a deed in the name of 
the state conveying the land given in exchange, with a 
certificate of unanimous approval by the board appended, and 
transmit the deed to the county auditor to be delivered upon 
receipt of a deed conveying to the state the land received in 
exchange, approved by the county attorney; provided, that if any 
amount is due the state under the terms of the exchange, the 
deed from the state shall not be executed or delivered until 
such amount is paid in full and a certificate thereof by the 
county auditor is filed with the commissioner of revenue.  The 
county auditor shall cause all deeds received by the state in 
such exchanges to be recorded or registered, and thereafter 
shall file the deeds or the certificates of registered title in 
the auditor's office.  If the land received by the county in the 
exchange is either Class A or Class C land, the commissioner of 
revenue shall deliver the deed for the Class B land to the 
commissioner of natural resources and following the recording of 
this deed, the commissioner of natural resources shall deliver 
to the county auditor a deed conveying the Class A or Class C 
land to the county auditor to be recorded or registered, and 
afterwards file the deeds or the certificate of registered title 
in the auditor's office.  
    Sec. 22.  Minnesota Statutes 1986, section 94.348, is 
amended to read:  
    94.348 [EXCHANGES OF STATE OWNED LAND, APPRAISAL FEE.] 
    Subdivision 1.  Whenever a private land owner or 
governmental unit, except the state, presents to the Minnesota 
land exchange board, an offer to exchange private or publicly 
held land for Class A state-owned land as defined in section 
94.342, the private land owner shall deposit with or 
governmental unit shall pay to the board an appraisal and survey 
fee of not less than $25 nor more than $100, the amount to 
be one-half of the cost of appraisal and survey determined by 
the board, depending upon the area of land involved in the offer 
commissioner. 
    Subd. 2.  If the offer of the private land owner is 
accepted by the board and the land exchange is consummated, or, 
if the board refuses to accept the offer the appraisal fee shall 
be refunded, otherwise the appraisal fee shall be retained by 
the board. [APPRAISAL AND SURVEY FEE.] (a) Except as provided in 
paragraph (b), the appraisal and survey fee shall be retained by 
the board.  
    (b) The appraisal and survey fee shall be refunded if:  
    (1) the land exchange offer is withdrawn by a private land 
owner or a governmental unit before money is spent for the 
appraisal and survey; or 
    (2) the board refuses to accept the land exchange offer.  
    Sec. 23.  Minnesota Statutes 1987 Supplement, section 
105.392, subdivision 4, is amended to read:  
    Subd. 4.  [PAYMENT AND HELP TO OWNER.] In return for the 
easement of the owner, the commissioner must provide advice on 
conservation and development practices on the wetlands and 
adjacent areas for the purposes of this section as the 
commissioner determines to be appropriate.  The commissioner 
must make the following payments to the landowner for the 
easement:  
    (1) for a permanent easement, 50 percent of the average 
equalized estimated market value of cropland in the township as 
established by the commissioner of revenue for the time period 
when the application is made; 
    (2) for an easement of limited duration, a lump sum payment 
equal to the present value of the annual payments for the term 
of the easement based on 50 percent of the mean adjusted cash 
rental for cropland in the county as established by the 
commissioner of revenue 65 percent of the value of the permanent 
easement value for the time period when the application is made; 
or 
    (3) an alternative payment system for easements based on 
cash rent or a similar system as may be determined by the 
commissioner. 
    Sec. 24.  [REPEALER.] 
    Minnesota Statutes 1986, section 92.25, is repealed.  
    Sec. 25. [EFFECTIVE DATE.] 
    Sections 6 to 10 and 24 are effective January 1, 1989. 
    Approved April 24, 1988

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Revisor of Statutes