1.1                          A bill for an act 
  1.2             relating to state lands; requiring public sale of 
  1.3             remaining lakeshore land leases; restricting amount of 
  1.4             lease rate and lease rate increases; amending 
  1.5             Minnesota Statutes 1996, section 92.46, subdivisions 1 
  1.6             and 3, and by adding a subdivision.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 92.46, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [PUBLIC CAMPGROUNDS.] (a) The director may 
  1.11  designate suitable portions of the state lands withdrawn from 
  1.12  sale and not reserved, as provided in section 92.45, as 
  1.13  permanent state public campgrounds.  The director may have the 
  1.14  land surveyed and platted into lots of convenient size, and 
  1.15  lease them for cottage and camp purposes under terms and 
  1.16  conditions the director prescribes, subject to the provisions of 
  1.17  this section.  
  1.18     (b) A lease may not be for a term more than 20 years.  The 
  1.19  lease may allow renewal, from time to time, for additional terms 
  1.20  of no longer than 20 years each.  The lease may be canceled by 
  1.21  the commissioner 90 days after giving the person leasing the 
  1.22  land written notice of violation of lease conditions.  The lease 
  1.23  rate shall be based on the appraised value of leased land as 
  1.24  determined by the commissioner of natural resources and shall be 
  1.25  adjusted by the commissioner at the fifth, tenth, and 15th 
  1.26  anniversary of the lease, if the appraised value has increased 
  2.1   or decreased.  ~~For leases that are renewed in 1991 and following~~ 
  2.2   ~~years, the lease rate shall be five percent of the appraised~~ 
  2.3   ~~value of the leased land.~~  The lease rate applied to the 
  2.4   appraised value shall be equal to the class rates applied to the 
  2.5   same value of seasonal residential recreational property under 
  2.6   section 273.13, subdivision 25.  The appraised value shall be 
  2.7   the value of the leased land without any private improvements 
  2.8   and must be comparable to similar land without any improvements 
  2.9   within the same county.  The minimum appraised value that the 
  2.10  commissioner assigns to the leased land must be substantially 
  2.11  equal to the county assessor's estimated market value of similar 
  2.12  land adjusted by the assessment/sales ratio as determined by the 
  2.13  department of revenue. 
  2.14     (c) By July 1, 1986, the commissioner of natural resources 
  2.15  shall adopt rules under chapter 14 to establish procedures for 
  2.16  leasing land under this section.  The rules shall be subject to 
  2.17  review and approval by the commissioners of revenue and 
  2.18  administration prior to the initial publication pursuant to 
  2.19  chapter 14 and prior to their final adoption.  The rules must 
  2.20  address at least the following: 
  2.21     (1) method of appraising the property; and 
  2.22     (2) an appeal procedure for both the appraised values and 
  2.23  lease rates. 
  2.24     (d) All money received from these leases must be credited 
  2.25  to the fund to which the proceeds of the land belong.  
  2.26     Notwithstanding section 16A.125 or any other law to the 
  2.27  contrary, 50 percent of the money received from the lease of 
  2.28  permanent school fund lands leased pursuant to this subdivision 
  2.29  must be credited to the lakeshore leasing and sales account in 
  2.30  the permanent school fund and is appropriated for use to survey, 
  2.31  appraise, and pay associated selling and leasing costs of lots 
  2.32  as required in this section and section 92.67, subdivision 3.  
  2.33  The money may not be used to pay the cost of surveying lots not 
  2.34  scheduled for sale.  Any money designated for deposit in the 
  2.35  permanent school fund that is not needed to survey, appraise, 
  2.36  and pay associated selling and leasing costs of lots, as 
  3.1   required in this section and section 92.67, shall be deposited 
  3.2   in the permanent school fund.  The commissioner shall add to the 
  3.3   appraised value of any lot offered for sale the costs of 
  3.4   surveying, appraising, and selling the lot, and shall first 
  3.5   deposit into the permanent school fund an amount equal to the 
  3.6   costs of surveying, appraising, and selling any lot paid out of 
  3.7   the permanent school fund.  Any remaining money shall be 
  3.8   deposited into any other contributing funds in proportion to the 
  3.9   contribution from each fund.  In no case may the commissioner 
  3.10  add to the appraised value of any lot offered for sale an amount 
  3.11  more than $700 for the costs of surveying and appraising the lot.
  3.12     Sec. 2.  Minnesota Statutes 1996, section 92.46, is amended 
  3.13  by adding a subdivision to read: 
  3.14     Subd. 1b.  [SALE OF LEASED PROPERTY.] A lessee holding a 
  3.15  lease under subdivision 1 on the enactment date of this 
  3.16  subdivision may request that the leased land be sold at public 
  3.17  sale.  The lessee must submit a written request for public sale 
  3.18  to the commissioner of natural resources by August 1, 1997.  The 
  3.19  commissioner shall mail notice of this subdivision to each 
  3.20  leaseholder within one month of the enactment date.  
  3.21  Notwithstanding section 92.45, the commissioner of natural 
  3.22  resources shall sell leased land at public sale after receipt of 
  3.23  a written request from the lessee, but in no event later than 
  3.24  October 31, 1997.  Notwithstanding section 92.14, notice of each 
  3.25  sale must be published in the State Register and in the daily 
  3.26  newspaper of the region where the leased land is located. 
  3.27     Sec. 3.  Minnesota Statutes 1996, section 92.46, 
  3.28  subdivision 3, is amended to read: 
  3.29     Subd. 3.  [LEASE RATE INCREASES.] (a) State land leased 
  3.30  under subdivision 1, that have increased lease rates effective 
  3.31  on or after January 1, 1986, shall phase in the increased lease 
  3.32  rates by three equal annual increments, except that the lease 
  3.33  rates shall be adjusted to reflect changes in the lease rates 
  3.34  resulting from rules adopted under subdivision 1. 
  3.35     (b) A lease rate increase shall not exceed the rate of 
  3.36  increase for taxes paid on comparably situated private property. 
  4.1      Sec. 4.  [EFFECTIVE DATE.] 
  4.2      Sections 1 to 3 are effective the day following final 
  4.3   enactment.