1.1                          A bill for an act 
  1.2             relating to natural resources; modifying timber 
  1.3             provisions; requiring certain rule changes for public 
  1.4             use of recreational areas; amending Minnesota Statutes 
  1.5             1998, sections 90.121; 90.14; 90.151, subdivisions 1 
  1.6             and 4; 90.161, subdivisions 1 and 2; 90.162; 90.173; 
  1.7             90.181; 90.201, subdivision 2, and by adding a 
  1.8             subdivision; 90.252; and 90.281; proposing coding for 
  1.9             new law in Minnesota Statutes, chapter 90. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Sec. 1.  [90.042] [PUBLIC NOTIFICATION.] 
  1.12     (a) The commissioner must conduct a public notification 
  1.13  process of all timber sales under the commissioner's authority 
  1.14  at least 30 days before a timber sale can commence.  The process 
  1.15  must provide public notice and public input in affected areas of 
  1.16  proposed annual harvest plans and the plans must be posted on 
  1.17  the department of natural resources web site.  By July 1, 2000, 
  1.18  the notification process must be in place. 
  1.19     (b) The contents of the notification process must be sent 
  1.20  to the legislative chairs of the natural resources policy and 
  1.21  finance committees.  By January 15, 2001, the commissioner must 
  1.22  report to the chairs on how the notification process is working 
  1.23  and any recommendations to improve it. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 90.121, is 
  1.25  amended to read: 
  1.26     90.121 [INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 
  1.27  CORDS.] 
  2.1      The commissioner may sell the timber on any tract of state 
  2.2   land in lots not exceeding 3,000 cords in volume, in the same 
  2.3   manner as timber sold at public auction under section 90.101, 
  2.4   and related laws, subject to the following special exceptions 
  2.5   and limitations:  
  2.6      (1) sales shall be at the forest office or other public 
  2.7   facility most accessible to potential bidders or close to where 
  2.8   the tract is located; 
  2.9      (2) the commissioner's list describing the tract, quantity 
  2.10  of timber, and appraised price shall be compiled not less than 
  2.11  30 days before the date of sale and a copy of the list posted 
  2.12  not less than 30 days before the date of the sale at the 
  2.13  location designated for the sale; 
  2.14     (3) notice of the sale shall be published once, not less 
  2.15  than one week before the date of the sale; 
  2.16     (4) no bidder may be awarded more than 25 percent of the 
  2.17  total tracts offered at the first round of bidding unless fewer 
  2.18  than four tracts are offered, in which case not more than one 
  2.19  tract shall be awarded to one bidder.  Any tract not sold may be 
  2.20  offered for sale for a period of no more than six months for 
  2.21  purchase by persons eligible under this section at the appraised 
  2.22  value; 
  2.23     (5) the bond or deposit required pursuant to section 90.161 
  2.24  or 90.173 shall be given or deposited and approved as to form 
  2.25  and execution by the commissioner before any cutting begins or 
  2.26  not later than 120 days after the date of purchase, whichever is 
  2.27  earlier, provided that the commissioner may extend the time for 
  2.28  furnishing the bond or deposit for not more than 30 additional 
  2.29  days for good cause shown; 
  2.30     (6) in lieu of the placing of the marks M I N on cut 
  2.31  products as prescribed under section 90.151, subdivision 2, all 
  2.32  landings of cut products shall be legibly marked with the name 
  2.33  of the permit holder and the assigned permit number; and 
  2.34     (7) no person may hold more than six permits issued under 
  2.35  this section and no sale may be made to a person holding six 
  2.36  permits which are still in effect or to a person having more 
  3.1   than 20 employees;.  
  3.2      (8) the permit may not exceed three years in duration; and 
  3.3      (9) if all cut timber, equipment, and buildings are not 
  3.4   removed at the end of any 120-day extension period which the 
  3.5   commissioner may grant for removal, the commissioner may grant a 
  3.6   second period of time not to exceed 120 days for the removal of 
  3.7   cut timber, equipment, and buildings upon receipt of a request 
  3.8   by the permit holder for hardship reasons only.  
  3.9      The auction sale procedure set forth in this section 
  3.10  constitutes an additional alternative timber sale procedure 
  3.11  available to the commissioner and is not intended to replace 
  3.12  other authority possessed by the commissioner to sell timber in 
  3.13  lots of 3,000 cords or less. 
  3.14     Sec. 3.  Minnesota Statutes 1998, section 90.14, is amended 
  3.15  to read: 
  3.16     90.14 [AUCTION SALE PROCEDURE.] 
  3.17     (a) All state timber shall be offered and sold by the same 
  3.18  unit of measurement as it was appraised.  The sale shall be made 
  3.19  to the party who (1) shall bid the highest price for all the 
  3.20  several kinds of timber as advertised, or (2) if unsold at 
  3.21  public auction, to the party who purchases at any sale 
  3.22  authorized under section 90.101, subdivision 1.  The 
  3.23  commissioner may refuse to approve any and all bids received and 
  3.24  cancel a sale of state timber for good and sufficient reasons.  
  3.25     (b) The purchaser at any sale of timber shall, immediately 
  3.26  upon the approval of the bid, or, if unsold at public auction, 
  3.27  at the time of purchase at a subsequent sale under section 
  3.28  90.101, subdivision 1, pay to the commissioner 25 15 percent of 
  3.29  the appraised value.  In case any purchaser fails to make such 
  3.30  payment, the purchaser shall be liable therefor to the state in 
  3.31  a civil action, and the commissioner may reoffer the timber for 
  3.32  sale as though no bid or sale under section 90.101, subdivision 
  3.33  1, therefor had been made. 
  3.34     Sec. 4.  Minnesota Statutes 1998, section 90.151, 
  3.35  subdivision 1, is amended to read: 
  3.36     Subdivision 1.  [ISSUANCE; EXPIRATION.] (a) Following 
  4.1   receipt of the down payment for state timber sold at public 
  4.2   auction, the commissioner shall issue a numbered permit to the 
  4.3   purchaser, in a form approved by the attorney general, by the 
  4.4   terms of which the purchaser shall be authorized to enter upon 
  4.5   the land, and to cut and remove the timber therein described, 
  4.6   according to the provisions of this chapter.  The permit shall 
  4.7   be correctly dated and executed by the commissioner or agent and 
  4.8   signed by the purchaser.  
  4.9      (b) The permit shall expire no later than five years after 
  4.10  the date of sale as the commissioner shall specify, and the 
  4.11  timber shall be cut within the time specified therein.  All cut 
  4.12  timber, equipment, and buildings not removed from the land 
  4.13  within 90 days after expiration of the permit shall become the 
  4.14  property of the state.  
  4.15     (c) The commissioner may grant an additional period of time 
  4.16  not to exceed 120 days for the removal of cut timber, equipment, 
  4.17  and buildings upon receipt of such request by the permit holder 
  4.18  for good and sufficient reasons.  The commissioner may grant a 
  4.19  second period of time not to exceed 120 days for the removal of 
  4.20  cut timber, equipment, and buildings upon receipt of a request 
  4.21  by the permit holder for hardship reasons only. 
  4.22     (d) No permit shall be issued to any person other than the 
  4.23  purchaser in whose name the bid was made.  
  4.24     Sec. 5.  Minnesota Statutes 1998, section 90.151, 
  4.25  subdivision 4, is amended to read: 
  4.26     Subd. 4.  [PERMIT TERMS.] The permit shall provide that all 
  4.27  timber sold or designated for cutting shall be cut without 
  4.28  damage to other timber; that the permit holder shall remove all 
  4.29  timber authorized to be cut under the permit; that timber sold 
  4.30  by board measure but later determined by the commissioner not to 
  4.31  be convertible into board measure shall be paid for by the piece 
  4.32  or cord or other unit of measure according to the size, species, 
  4.33  or value, as may be determined by the commissioner; that all 
  4.34  timber products, except as specified by the commissioner, shall 
  4.35  be scaled and the final settlement for the timber cut shall be 
  4.36  made on this scale; and that the permit holder shall pay to the 
  5.1   state the permit price for all timber authorized to be cut, 
  5.2   including timber not cut. 
  5.3      Sec. 6.  Minnesota Statutes 1998, section 90.161, 
  5.4   subdivision 1, is amended to read: 
  5.5      Subdivision 1.  [BOND REQUIRED.] Except as otherwise 
  5.6   provided by law, the purchaser of any state timber, before any 
  5.7   timber permit shall become effective for any purpose, 
  5.8   shall within 120 days from the date of purchase give a good and 
  5.9   valid bond to the state of Minnesota equal to the value of all 
  5.10  timber covered or to be covered by the permit, as shown by the 
  5.11  sale price bid and the appraisal report as to quantity, less the 
  5.12  amount of any payment pursuant to section 90.14.  The bond shall 
  5.13  be conditioned upon the faithful performance by the purchaser 
  5.14  and successors in interest of all terms and conditions of the 
  5.15  permit and all requirements of law in respect to timber sales.  
  5.16  The bond shall be approved in writing by the commissioner and 
  5.17  filed for record in the commissioner's office.  In the 
  5.18  alternative to cash and bond requirements, but upon the same 
  5.19  conditions, a purchaser may post bond for 100 percent of the 
  5.20  purchase price and request refund of the amount of any payment 
  5.21  pursuant to section 90.14.  The commissioner may credit the 
  5.22  refund to any other permit held by the same permit holder if the 
  5.23  permit is delinquent as provided in section 90.181, subdivision 
  5.24  2, or may credit the refund to any other permit to which the 
  5.25  permit holder requests that it be credited.  
  5.26     Sec. 7.  Minnesota Statutes 1998, section 90.161, 
  5.27  subdivision 2, is amended to read: 
  5.28     Subd. 2.  [FAILURE TO BOND.] If bond is not furnished 
  5.29  within 120 days from the date of purchase, no harvesting may 
  5.30  occur and the down payment for timber shall forfeit to the 
  5.31  state, except that the commissioner may grant an extension of 
  5.32  time for good and sufficient reason, provided that any extension 
  5.33  of time shall not exceed 30 days.  
  5.34     Sec. 8.  Minnesota Statutes 1998, section 90.162, is 
  5.35  amended to read: 
  5.36     90.162 [ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS.] 
  6.1      In lieu of the bond or cash deposit required by section 
  6.2   90.161 or 90.173, a purchaser of state timber may, at the time 
  6.3   of the bid approval and upon payment by the purchaser to the 
  6.4   commissioner of 25 15 percent of the appraised value under 
  6.5   section 90.14, elect in writing on a form prescribed by the 
  6.6   attorney general to prepay the purchase price for any designated 
  6.7   cutting block identified on the permit before the date the 
  6.8   purchaser enters upon the land to begin harvesting the timber. 
  6.9      Sec. 9.  Minnesota Statutes 1998, section 90.173, is 
  6.10  amended to read: 
  6.11     90.173 [PURCHASER'S OR ASSIGNEE'S CASH DEPOSIT IN LIEU OF 
  6.12  BOND.] 
  6.13     (a) In lieu of filing the bond required by section 90.161 
  6.14  or 90.171, as security for the issuance or assignment of a 
  6.15  timber permit the person required to file the bond may deposit 
  6.16  with the state treasurer cash, a certified check, a cashier's 
  6.17  check, a personal check, a postal, bank, or express money order, 
  6.18  assignable bonds or notes of the United States, or an assignment 
  6.19  of a bank savings account or investment certificate or an 
  6.20  irrevocable bank letter of credit, in the same amount as would 
  6.21  be required for a bond.  If securities listed in this section 
  6.22  are deposited, the par value of the securities shall be not less 
  6.23  than the amount required for the timber sale bond, and the 
  6.24  person required to file the timber sale bond shall submit an 
  6.25  agreement authorizing the commissioner to sell or otherwise take 
  6.26  possession of the security in the event of default under the 
  6.27  timber sale.  All of the conditions of the timber sale bond 
  6.28  shall equally apply to the deposit with the state treasurer.  In 
  6.29  the event of a default the state may take from the deposit the 
  6.30  sum of money to which it is entitled; the remainder, if any, 
  6.31  shall be returned to the person making the deposit and shall 
  6.32  bear interest at the rate determined pursuant to section 549.09 
  6.33  if not returned within 30 days from the date of the default.  
  6.34  Sums of money as may be required by the state treasurer to carry 
  6.35  out the terms and provisions of this section are appropriated 
  6.36  from the general fund to the state treasurer for these 
  7.1   purposes.  When cash is deposited for a bond, it shall be 
  7.2   applied to the amount due when a statement is prepared and 
  7.3   transmitted to the permit holder pursuant to section 90.181.  
  7.4   Any balance due to the state shall be shown on the statement and 
  7.5   shall be paid as provided in section 90.181.  Any amount of the 
  7.6   deposit in excess of the amount determined to be due pursuant to 
  7.7   section 90.181 shall be returned to the permit holder when a 
  7.8   final statement is transmitted pursuant to that section.  All or 
  7.9   part of a cash bond may be withheld from application to an 
  7.10  amount due on a nonfinal statement if it appears that the total 
  7.11  amount due on the permit will exceed the bid price.  
  7.12     (b) If an irrevocable bank letter of credit is provided as 
  7.13  security under paragraph (a), at the written request of the 
  7.14  permittee the state shall annually allow the amount of the bank 
  7.15  letter of credit to be reduced by an amount proportionate to the 
  7.16  value of timber that has been harvested and for which the state 
  7.17  has received payment under the timber permit.  The remaining 
  7.18  amount of the bank letter of credit after a reduction under this 
  7.19  paragraph must not be less than the value of the timber 
  7.20  remaining to be harvested under the timber permit. 
  7.21     Sec. 10.  Minnesota Statutes 1998, section 90.181, is 
  7.22  amended to read: 
  7.23     90.181 [STATEMENT OF TIMBER CUT.] 
  7.24     Subdivision 1.  [PASSAGE OF TITLE TO TIMBER.] (a) The 
  7.25  commissioner shall transmit to the permit holder a statement of 
  7.26  the amount due therefor by the terms of the permit upon 
  7.27  completion of the cutting or at least annually in the case of an 
  7.28  auction permit.  Any partial payment received may be applied to 
  7.29  any items on the statement as the commissioner shall determine.  
  7.30     (b) The title to the timber shall not pass from the state 
  7.31  until such the timber has been scaled as required by the permit 
  7.32  and the commissioner has made adequate arrangements for 
  7.33  collecting the payment for the same as will protect the interest 
  7.34  of the state, full payment for the timber has been received, and 
  7.35  all other provisions of the permit have been fully complied with.
  7.36     Subd. 2.  [DEFERRED PAYMENTS.] (a) If the amount of the 
  8.1   statement is not paid within 30 days of the date thereof, it 
  8.2   shall bear interest at the rate determined pursuant to section 
  8.3   549.09 16A.124, except that the purchaser shall not be required 
  8.4   to pay interest that totals $1 or less.  If the amount is not 
  8.5   paid within 60 days, the commissioner shall place the account in 
  8.6   the hands of the attorney general who shall proceed to collect 
  8.7   the same.  When deemed in the best interests of the state, the 
  8.8   commissioner shall take possession of the timber for which an 
  8.9   amount is due wherever it may be found and sell the same 
  8.10  informally or at public auction after giving reasonable notice.  
  8.11     (b) The proceeds of the sale shall be applied, first, to 
  8.12  the payment of the expenses of seizure and sale; and, second, to 
  8.13  the payment of the amount due for the timber, with interest; and 
  8.14  the surplus, if any, shall belong to the state; and, in case a 
  8.15  sufficient amount is not realized to pay these amounts in full, 
  8.16  the balance shall be collected by the attorney general.  Neither 
  8.17  payment of the amount, nor the recovery of judgment therefor, 
  8.18  nor satisfaction of the judgment, nor the seizure and sale of 
  8.19  timber, shall release the sureties on any bond given pursuant to 
  8.20  this chapter, or preclude the state from afterwards claiming 
  8.21  that the timber was cut or removed contrary to law and 
  8.22  recovering damages for the trespass thereby committed, or from 
  8.23  prosecuting the offender criminally.  
  8.24     Sec. 11.  Minnesota Statutes 1998, section 90.201, 
  8.25  subdivision 2, is amended to read: 
  8.26     Subd. 2.  [REFUNDS ON FINAL BILLING; INTEREST PAYMENT ON 
  8.27  LATE REFUNDS.] The commissioner shall refund to a permit holder 
  8.28  any amount paid on a timber sale which exceeds the value of the 
  8.29  timber cut under that sale as determined on a final statement 
  8.30  transmitted pursuant to section 90.181.  The commissioner may 
  8.31  credit a refund to any other permit held by the same permit 
  8.32  holder if the permit is delinquent as provided in section 
  8.33  90.181, subdivision 2, and may credit a refund to any other 
  8.34  permit to which the permit holder requests that it be credited.  
  8.35     Any refund of cash which is due to a permit holder as 
  8.36  determined on a final statement transmitted pursuant to section 
  9.1   90.181 which is not paid to the permit holder within 45 days 
  9.2   after the date of that statement shall bear interest at the rate 
  9.3   determined pursuant to section 549.09 unless the refund is 
  9.4   credited on another permit as provided in this subdivision. 
  9.5   Interest shall be paid from the date of the final statement.  No 
  9.6   interest shall be paid in an amount of $50 or less.  
  9.7      Sec. 12.  Minnesota Statutes 1998, section 90.201, is 
  9.8   amended by adding a subdivision to read: 
  9.9      Subd. 2a.  [PROMPT PAYMENT OF REFUNDS.] Any refund of cash 
  9.10  that is due to a permit holder as determined on a final 
  9.11  statement transmitted pursuant to section 90.181 or a refund of 
  9.12  cash made pursuant to section 90.161, subdivision 1, or 90.173, 
  9.13  paragraph (a), shall be paid to the permit holder according to 
  9.14  section 16A.124 unless the refund is credited on another permit 
  9.15  as provided in this chapter. 
  9.16     Sec. 13.  Minnesota Statutes 1998, section 90.252, is 
  9.17  amended to read: 
  9.18     90.252 [CONSUMER SCALE OF STATE TIMBER.] 
  9.19     The commissioner may enter into an agreement with either a 
  9.20  timber sale permittee, or the purchaser of the cut products, or 
  9.21  both, so that the scaling of the cut timber and the collection 
  9.22  of the payment for the same can be consummated by the consumer.  
  9.23  Such an agreement shall provide for a bond or cash in lieu of a 
  9.24  bond and such other safeguards as are necessary to protect the 
  9.25  interests of the state.  Such a scaling and payment collection 
  9.26  procedure may be used for any state timber sale, except that in 
  9.27  the case of timber sold under section 90.101, no permittee who 
  9.28  is also the consumer shall both cut and scale the timber sold 
  9.29  unless such scaling is supervised by a state scaler.  
  9.30     Sec. 14.  Minnesota Statutes 1998, section 90.281, is 
  9.31  amended to read: 
  9.32     90.281 [RESCALES, RECOUNTS AND REESTIMATES.] 
  9.33     (a) Upon complaint of any interested permit holder 
  9.34  questioning the accuracy of any scale, count, or estimate of 
  9.35  timber made by any state appraiser, or at any other time the 
  9.36  commissioner determines in the absence of a complaint, the 
 10.1   commissioner may cause a rescale, recount, or reestimate thereof 
 10.2   to be made jointly by any two or more state appraisers, which 
 10.3   when made shall supersede and for all purposes take the place of 
 10.4   the original scale, count, or estimate, if and only when it the 
 10.5   scale or count varies more than ten percent from the original or 
 10.6   the estimate exceeds the standards established by section 90.045.
 10.7      (b) As a condition precedent to the making of any such a 
 10.8   rescale, recount, or reestimate upon the complaint of any 
 10.9   person, the commissioner may require such the person to make 
 10.10  available such sum of money as the commissioner deems necessary 
 10.11  for the actual expenses thereof and to forfeit the same to the 
 10.12  state if such the rescale, and recount, or reestimate does not 
 10.13  vary more than ten percent from the original or the reestimate 
 10.14  does not exceed the standards established by section 90.045.  
 10.15  All such forfeited money shall be paid into the state treasury 
 10.16  and credited to the fund or account from which the expenses 
 10.17  of such the rescale, recount, or reestimate were paid.  
 10.18     Sec. 15.  [RULES FOR PUBLIC USE OF RECREATIONAL AREAS.] 
 10.19     (a) The commissioner of natural resources shall amend the 
 10.20  permanent rules relating to public use of recreational areas, 
 10.21  Minnesota Rules, parts 6100.0100 to 6100.2400, according to this 
 10.22  section and pursuant to Minnesota Statutes, section 14.388. 
 10.23     (b) Minnesota Rules, part 6100.1950, subpart 1, item B, 
 10.24  shall be amended to read:  "Motor vehicles may operate on forest 
 10.25  lands classified as limited only on forest roads that are not 
 10.26  posted and designated closed and on forest trails or areas that 
 10.27  are posted and designated to allow motor vehicle use, subject to 
 10.28  the limitations and exceptions in this part."  
 10.29     (c) Minnesota Rules, part 6100.1950, subpart 7, shall be 
 10.30  amended by adding an item D to read:  "On forest lands 
 10.31  classified as limited, persons lawfully engaged in hunting big 
 10.32  game or constructing hunting stands during October, November, 
 10.33  and December, or trapping during open seasons, may use ATV's off 
 10.34  forest trails in a manner consistent with this subpart.  This 
 10.35  exception does not apply in the Richard J. Dorer Memorial 
 10.36  Hardwood Forest."  A technical correction may be made to item C 
 11.1   to correct the reference to this part. 
 11.2      (d) Minnesota Rules, part 6100.1950, subpart 7, shall be 
 11.3   amended by adding an item E to read:  "No person shall cut 
 11.4   commercial timber or move soil for the purpose of constructing 
 11.5   an unauthorized, permanent trail on forest lands."