Bill Text: MN SF563 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Natural resources department (DNR) road easements exchange and school forest establishment; forest management investment account and state timber act modifications; state tree nurseries sales; timber permit cancellation

Spectrum: Slight Partisan Bill (Independent 2-1)

Status: (Introduced - Dead) 2013-03-18 - Comm report: To pass and re-referred to Finance [SF563 Detail]

Download: Minnesota-2013-SF563-Engrossed.html

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A bill for an act

relating to natural resources; providing for exchange of road easements;
modifying forest management investment account; providing for school forests;
modifying state tree nursery program; providing for certain timber permit
cancellations; modifying State Timber Act; appropriating money;amending
Minnesota Statutes 2012, sections 89.0385; 89.41; 90.01, subdivisions 4, 5, 6, 8,
11; 90.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions;
90.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151,
subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2;
90.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221;
90.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 282.01,
subdivisions 1a, 1d; Laws 2011, First Special Session chapter 2, article 4, section
30; proposing coding for new law in Minnesota Statutes, chapters 84; 90;
repealing Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. [84.633] EXCHANGE OF ROAD EASEMENTS.
    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
the state, may convey a road easement according to this section for access across state
land under the commissioner's jurisdiction in exchange for a road easement for access to
property owned by the United States, the state of Minnesota or any of its subdivisions, or a
private party. The exercise of the easement across state land must not cause significant
adverse environmental or natural resources management impacts. Exchanges under this
section are limited to existing access corridors.
    Subd. 2. Substantially equal acres. The acres covered by the state easement
conveyed by the commissioner must be substantially equal to the acres covered by the
easement being received by the commissioner. For purposes of this section, "substantially
equal" means that the acres do not differ by more than 20 percent. The commissioner's
finding of substantially equal acres is in lieu of an appraisal or other determination of
value of the lands.
    Subd. 3. School trust lands. If the commissioner conveys a road easement over
school trust land to a nongovernmental entity, the term of the road easement is limited
to 50 years. The easement exchanged with the state may be limited to 50 years or may
be perpetual.
    Subd. 4. Terms and conditions. The commissioner may impose terms and
conditions of use as necessary and appropriate under the circumstances. The state may
accept an easement with similar terms and conditions as the state easement.
    Subd. 5. Survey. If the commissioner determines that a survey is required, the
governmental unit or private landowner shall pay to the commissioner a survey fee of not
less than one half of the cost of the survey as determined by the commissioner.
    Subd. 6. Application fee. When a private landowner or governmental unit, except
the state, presents to the commissioner an offer to exchange road easements, the private
landowner or governmental unit shall pay an application fee as provided under section
84.63 to cover reasonable costs for reviewing the application and preparing the easements.
    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
as to the title of the land being encumbered by the easement that will be received by the
commissioner, the governmental unit or private landowner shall submit an abstract of title
or other title information sufficient to determine possession of the land, improvements,
liens, encumbrances, and other matters affecting title.
    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
to the account from which expenses are or will be paid and the fee is appropriated for the
expenditures in the same manner as other money in the account.
(b) Any fee paid under subdivision 6 must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner to cover the
reasonable costs incurred for preparing and issuing the state road easement and accepting
the road easement from the private landowner or governmental entity.

    Sec. 2. Minnesota Statutes 2012, section 89.0385, is amended to read:
89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
CERTIFICATION.
(a) After each fiscal year, The commissioner shall certify the total costs incurred for
forest management, forest improvement, and road improvement on state-managed lands
during that a fiscal year. The commissioner shall distribute forest management receipts
credited to various accounts according to this section.
(b) The amount of the certified costs incurred for forest management activities on
state lands shall be transferred from the account where receipts are deposited to the forest
management investment account in the natural resources fund, except for those costs
certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
revenue reports, throughout the fiscal year, with final certification and reconciliation after
each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

    Sec. 3. Minnesota Statutes 2012, section 89.41, is amended to read:
89.41 EDUCATIONAL UNITS MAY ESTABLISH AND MAINTAIN SCHOOL
FORESTS.
    Subdivision 1. Establishment and maintenance of school forests. Any school
district in the state, however organized, the University of Minnesota, or any branch
thereof, any state university, community college, or other public educational institution
or agency of the state, all herein referred to as agencies, may establish and maintain
school forests as herein provided according to this section, subject to the approval of the
commissioner of natural resources. Any such agency may use for the purpose of such a
forest any land belonging to it, or may acquire land therefor by gift or with contributed
funds. For the purpose of a school forest, an agency may use land the agency owns or uses
under an agreement or may acquire land by gift or with contributed funds.
    Subd. 2. Conveyance of tax-forfeited land for school forest use. For the purposes
of such forest school forests established under this section, any tax-forfeited lands may be
sold by the county board to any such an agency or may be conveyed by the commissioner of
revenue to any such an agency in like manner as provided for the sale or conveyance of such
tax-forfeited lands to governmental subdivisions under section 282.01 and amendments
thereof. A conveyance under this subdivision is made without monetary compensation or
consideration for the conveyance, but the conveyance is subject to the conditional use and
reversion provisions under section 282.01, subdivisions 1c and 1d, paragraph (e).
    Subd. 3. Monitoring and reporting. The commissioner shall annually monitor
tax-forfeited lands conveyed according to subdivision 2 to determine whether the
lands continue to be used as school forests. The commissioner shall submit an annual
monitoring report to the commissioner of revenue that identifies any lands no longer
used as school forests.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
commissioner to measure timber and cut forest products.

    Sec. 5. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
    Subd. 5. State appraiser. "State appraiser" means an employee of the department
designated by the commissioner to appraise state lands, which includes, but is not limited
to, timber and other forest resource products, for volume, quality, and value.

    Sec. 6. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
forest products of value whether standing or down, and including but not limited to logs,
sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
and woody decorative material.

    Sec. 7. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
signatory of a permit to cut timber on state lands.

    Sec. 8. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
    Subd. 11. Effective permit. "Effective permit" means a permit for which the
commissioner has on file full or partial surety security as required by section 90.161, or
90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
90.195 , the commissioner has received a down payment equal to the full appraised value.

    Sec. 9. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
time to time, rules it deems advisable for the transaction of timber business of the state,
including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
in volume when the sale is in the best interests of the state, and may abrogate, modify,
or suspend rules at its pleasure.

    Sec. 10. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
with the approval of notification to the attorney general, upon terms the commissioner
deems just, any claim of the state for casual and involuntary trespass upon state lands or
timber; provided that no claim shall be settled for less than the full value of all timber
or other materials taken in casual trespass or the full amount of all actual damage or
loss suffered by the state as a result. Upon request, the commissioner shall advise the
Executive Council of any information acquired by the commissioner concerning any
trespass on state lands, giving all details and names of witnesses and all compromises and
settlements made under this subdivision.

    Sec. 11. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
    Subd. 5. Forest improvement contracts. The commissioner may contract as part
of the timber sale with the purchaser of state timber at either informal or auction sale
for the following forest improvement work to be done on the land included within the
sale area:. Forest improvement work may include activities relating to preparation of
the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
trees, and other activities relating related to forest regeneration or deemed necessary by
the commissioner to accomplish forest management objectives, including those related
to water quality protection, trail development, and wildlife habitat enhancement. A
contract issued under this subdivision is not subject to the competitive bidding provisions
of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
subdivision 2 . The bid value received in the sale of the timber and the contract bid
cost of the improvement work may be combined and the total value may be considered
by the commissioner in awarding forest improvement contracts under this section.
The commissioner may refuse to accept any and all bids received and cancel a forest
improvement contract sale for good and sufficient reasons.

    Sec. 12. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
cause on notice that the commissioner considers reasonable when there is a high risk that
the salvage value of the timber would be lost.

    Sec. 13. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
provisions of section 90.101 below appraised value at public auction with the required
30-day notice under section 90.101, subdivision 2.

    Sec. 14. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
commissioner's cost of issuing, administering, and processing various permits, permit
modifications, transfers, assignments, amendments, and other transactions necessary to the
administration of activities under this chapter.
(b) A fee established under this subdivision is not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The commissioner may
establish fees under this subdivision notwithstanding section 16A.1283.

    Sec. 15. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
owned timber in Minnesota or convicted in any other state involving similar offenses and
penalties for timber owned in that state. The commissioner shall cancel and repossess the
permit directly involved in the prosecution of the crime. The commissioner shall cancel
and repossess all other state timber permits held by the permit holder after taking from
all security deposits money to which the state is entitled. The commissioner shall return
the remainder of the security deposits, if any, to the permit holder. The debarred permit
holder is prohibited from bidding, possessing, or being employed on any state timber
permit during the period of debarment. The period of debarment is not less than one year
or greater than three years. The duration of the debarment is based on the severity of the
violation, past history of compliance with timber permits, and the amount of loss incurred
by the state arising from violations of timber permits.

    Sec. 16. Minnesota Statutes 2012, section 90.045, is amended to read:
90.045 APPRAISAL STANDARDS.
By July 1, 1983, the commissioner shall establish specific timber appraisal standards
according to which all timber appraisals will be conducted under this chapter. The
standards shall include a specification of the maximum allowable appraisal sampling error,
and including the procedures for tree defect allowance, tract area estimation, product
volume estimation, and product value determination. The timber appraisal standards shall
be included in each edition of the timber sales manual published by the commissioner. In
addition to the duties pursuant to section 90.061, every state appraiser shall work within
the guidelines of the timber appraisal standards. The standards shall not be subject to
the rulemaking provisions of chapter 14.

    Sec. 17. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
    Subd. 8. Appraiser authority; form of documents. State appraisers are
empowered, with the consent of the commissioner, to perform any scaling, and generally
to supervise the cutting and removal of timber and forest products on or from state lands
so far as may be reasonably necessary to insure compliance with the terms of the permits
or other contracts governing the same and protect the state from loss.
The form of appraisal reports, records, and notes to be kept by state appraisers
shall be as the commissioner prescribes.

    Sec. 18. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land and may determine the number of sections or fractional sections of land
to be included in the permit area covered by any one permit issued to the purchaser of
timber on state lands, or in any one contract or other instrument relating thereto. No
timber shall be sold, except (1) to the highest responsible bidder at public auction, or
(2) if unsold at public auction, the commissioner may offer the timber for private sale
for a period of no more than six months one year after the public auction to any person
responsible bidder who pays the appraised value for the timber. The minimum price shall
be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
in more than one contiguous county or forestry administrative area and shall be held either
in the county or forestry administrative area in which the tract is located or in an adjacent
county or forestry administrative area that is nearest the tract offered for sale or that is
most accessible to potential bidders. In adjoining counties or forestry administrative areas,
sales may not be held less than two hours apart.

    Sec. 19. Minnesota Statutes 2012, section 90.121, is amended to read:
90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.
(a) The commissioner may sell the timber on any tract of state land in lots not
exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
section 90.101, and related laws, subject to the following special exceptions and limitations:
(1) the commissioner shall offer all tracts authorized for sale by this section
separately from the sale of tracts of state timber made pursuant to section 90.101;
(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more than
one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
persons responsible bidders eligible under this section at the appraised value; and
(3) no sale may be made to a person responsible bidder having more than 30
employees. For the purposes of this clause, "employee" means an individual working in
the timber or wood products industry for salary or wages on a full-time or part-time basis.
(b) The auction sale procedure set forth in this section constitutes an additional
alternative timber sale procedure available to the commissioner and is not intended to
replace other authority possessed by the commissioner to sell timber in lots of 3,000
cords or less.
(c) Another bidder or the commissioner may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
evidence that the bidder may be ineligible due to exceeding the employee threshold. The
commissioner shall request information from the commissioners of labor and industry and
employment and economic development including the premiums paid by the bidder in
question for workers' compensation insurance coverage for all employees of the bidder.
The commissioner shall review the information submitted by the commissioners of labor
and industry and employment and economic development and make a determination based
on that information as to whether the bidder is eligible. A bidder is considered eligible and
may participate in intermediate auctions until determined ineligible under this paragraph.

    Sec. 20. Minnesota Statutes 2012, section 90.145, is amended to read:
90.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
REQUIREMENTS.
    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
requirements imposed by this chapter, the purchaser of a state timber permit issued under
section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
assigns conducting logging operations on the timber permit must comply with general
industry safety standards for logging adopted by the commissioner of labor and industry
under chapter 182. The commissioner of natural resources shall may require a purchaser
to provide proof of compliance with the general industry safety standards.
(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
conducting logging operations on the timber permit must comply with the mandatory
insurance requirements of chapter 176. The commissioner shall may require a purchaser
to provide a copy of the proof of insurance required by section 176.130 before the start of
harvesting operations on any permit.
(d) Before the start of harvesting operations on any permit, the purchaser must certify
that a foreperson or other designated employee who has a current certificate of completion,
which includes instruction in site-level forest management guidelines or best management
practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
Industry Safety and Training Alliance (FISTA), or any similar continuous education
program acceptable to the commissioner, is supervising active logging operations.
(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
who will be involved with logging or scaling state timber must be in compliance with
this chapter.
    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
issued under section 90.151, the commissioner may establish a purchaser preregistration
registration system to verify the qualifications of a person as a responsible bidder to
purchase a timber permit. Any system implemented by the commissioner shall be limited
in scope to only that information that is required for the efficient administration of the
purchaser qualification provisions requirements of this chapter and shall conform with the
requirements of chapter 13. The registration system established under this subdivision is
not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

    Sec. 21. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
for state timber required under section 90.14 or 90.191, the commissioner shall issue a
numbered permit to the purchaser, in a form approved by the attorney general, by the
terms of which the purchaser shall be authorized to enter upon the land, and to cut and
remove the timber therein described as designated for cutting in the report of the state
appraiser, according to the provisions of this chapter. The permit shall be correctly
dated and executed by the commissioner and signed by the purchaser. If a permit is not
signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
and the down payment for timber required under section 90.14 forfeits to the state. The
commissioner may grant an additional period for the purchaser to sign the permit, not to
exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
    (b) The permit shall expire no later than five years after the date of sale as the
commissioner shall specify or as specified under section 90.191, and the timber shall
be cut and removed within the time specified therein. All cut timber, equipment, and
buildings not removed from the land within 90 days after expiration of the permit shall
become the property of the state. If additional time is needed, the permit holder must
request, prior to the expiration date, and may be granted, for good and sufficient reasons,
up to 90 additional days for the completion of skidding, hauling, and removing all
equipment and buildings. All cut timber, equipment, and buildings not removed from the
land after expiration of the permit becomes the property of the state.
    (c) The commissioner may grant an additional period of time not to exceed 120 240
days for the removal of cut timber, equipment, and buildings upon receipt of such a written
request by the permit holder for good and sufficient reasons. The commissioner may grant
a second period of time not to exceed 120 days for the removal of cut timber, equipment,
and buildings upon receipt of a request by the permit holder for hardship reasons only.
The permit holder may combine in the written request under this paragraph the request
for additional time under paragraph (b).

    Sec. 22. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
    Subd. 2. Permit requirements. The permit shall state the amount of timber
estimated for cutting on the land, the estimated value thereof, and the price at which it is
sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
sold, and shall specify that all landings of cut products shall be legibly marked with the
assigned permit number. The permit shall provide for the continuous identification
and control of the cut timber from the time of cutting until delivery to the consumer.
The permit shall provide that failure to continuously identify the timber as specified in
the permit constitutes trespass.

    Sec. 23. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
    Subd. 3. Security provisions. The permit shall contain such provisions as may be
necessary to secure to the state the title of all timber cut thereunder wherever found until
full payment therefor and until all provisions of the permit have been fully complied
with. The permit shall provide that from the date the same becomes effective cutting
commences until the expiration thereof of the permit, including all extensions, the
purchaser and successors in interest shall be liable to the state for the full permit price of
all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
such timber and recover the value thereof anywhere prior to the payment therefor in full to
the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
from any person other than the permit holder, the permit holder shall be deemed released
to the extent of the net amount, after deducting all expenses of collecting same, recovered
by the state from such other person.

    Sec. 24. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
the permit holder is liable to the state for the permit price for all timber required to be cut,
including timber not cut. The permit shall provide that all timber sold or designated for
cutting shall be cut without in such a manner so as not to cause damage to other timber;
that the permit holder shall remove all timber authorized and designated to be cut under
the permit; that timber sold by board measure identified in the permit, but later determined
by the commissioner not to be convertible into board the permit's measure, shall be paid
for by the piece or cord or other unit of measure according to the size, species, or value, as
may be determined by the commissioner; and that all timber products, except as specified
by the commissioner, shall be scaled and the final settlement for the timber cut shall be
made on this scale; and that the permit holder shall pay to the state the permit price for
all timber authorized to be cut, including timber not cut.

    Sec. 25. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
    Subd. 6. Notice and approval required. The permit shall provide that the permit
holder shall not start cutting any state timber nor clear building sites landings nor logging
roads until the commissioner has been notified and has given prior approval to such
cutting operations. Approval shall not be granted until the permit holder has completed
a presale conference with the state appraiser designated to supervise the cutting. The
permit holder shall also give prior notice whenever permit operations are to be temporarily
halted, whenever permit operations are to be resumed, and when permit operations are to
be completed.

    Sec. 26. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
permit holder shall pay the permit price value for any timber sold which is negligently
destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
permit holder shall cut or remove or negligently destroy or damage any timber upon the
land described, not sold under the permit, except such timber as it may be necessary to cut
and remove in the construction of necessary logging roads and landings approved as to
location and route by the commissioner, such timber shall be deemed to have been cut in
trespass. The permit holder shall be liable for any such timber and recourse may be had
upon the bond security deposit.

    Sec. 27. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
shall have the power to order suspension of all operations under the permit when in the
commissioner's judgment the conditions thereof have not been complied with and any
timber cut or removed during such suspension shall be deemed to have been cut in trespass;
that the commissioner may cancel the permit at any time when in the commissioner's
judgment the conditions thereof have not been complied with due to a breach of the permit
conditions and such cancellation shall constitute repossession of the timber by the state;
that the permit holder shall remove equipment and buildings from such land within 90 days
after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
state under any other permits, any or all permits may be canceled; and that any timber cut
or removed in violation of the terms of the permit or of any law shall constitute trespass.

    Sec. 28. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
operations, as specified in the permit, in the manner now or hereafter provided by law.

    Sec. 29. Minnesota Statutes 2012, section 90.161, is amended to read:
90.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
REQUIRED FOR EFFECTIVE TIMBER PERMITS.
    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
by law, the purchaser of any state timber, before any timber permit becomes effective for
any purpose, shall give a good and valid bond security in the form of cash; a certified
check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
timber covered or to be covered by the permit, as shown by the sale price bid and the
appraisal report as to quantity, less the amount of any payments pursuant to sections
section 90.14 and 90.163.
(b) The bond security deposit shall be conditioned upon the faithful performance
by the purchaser and successors in interest of all terms and conditions of the permit and
all requirements of law in respect to timber sales. The bond security deposit shall be
approved in writing by the commissioner and filed for record in the commissioner's office.
(c) In the alternative to cash and bond requirements, but upon the same conditions,
A purchaser may post bond for 100 percent of the purchase price and request refund of the
amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
may credit the refund to any other permit held by the same permit holder if the permit is
delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
other permit to which the permit holder requests that it be credited.
(d) In the event of a default, the commissioner may take from the deposit the sum of
money to which the state is entitled. The commissioner shall return the remainder of the
deposit, if any, to the person making the deposit. When cash is deposited as security, it
shall be applied to the amount due when a statement is prepared and transmitted to the
permit holder according to section 90.181. Any balance due to the state shall be shown on
the statement and shall be paid as provided in section 90.181. Any amount of the deposit
in excess of the amount determined to be due according to section 90.181 shall be returned
to the permit holder when a final statement is transmitted under section 90.181. All or
part of a cash deposit may be withheld from application to an amount due on a nonfinal
statement if it appears that the total amount due on the permit will exceed the bid price.
(e) If an irrevocable bank letter of credit is provided as security under paragraph
(a), at the written request of the permittee, the commissioner shall annually allow the
amount of the bank letter of credit to be reduced by an amount proportionate to the value
of timber that has been harvested and for which the state has received payment under the
timber permit. The remaining amount of the bank letter of credit after a reduction under
this paragraph must not be less than the value of the timber remaining to be harvested
under the timber permit.
(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
express money order is provided as security under paragraph (a) and no cutting of state
timber has taken place on the permit, the commissioner may credit the security provided,
less any deposit required under section 90.14, to any other permit to which the permit
holder requests in writing that it be credited.
    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
not furnished, no harvesting may occur and the down payment for timber 15 percent of the
permit's purchase price shall forfeit to the state when the permit expires.
    Subd. 3. Subrogation. In case of default When security is provided by surety
bond and the permit holder defaults in payment by the permit holder, the surety upon the
bond shall make payment in full to the state of all sums of money due under such permit;
and thereupon such surety shall be deemed immediately subrogated to all the rights of
the state in the timber so paid for; and such subrogated party may pursue the timber and
recover therefor, or have any other appropriate relief in relation thereto which the state
might or could have had if such surety had not made such payment. No assignment or
other writing on the part of the state shall be necessary to make such subrogation effective,
but the certificate signed by and bearing the official seal of the commissioner, showing the
amount of such timber, the lands from which it was cut or upon which it stood, and the
amount paid therefor, shall be prima facie evidence of such facts.
    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
incidental to the preparation for harvest, a purchaser having posted a bond security deposit
for 100 percent of the purchase price of a sale may request the release of the bond security
and the commissioner shall grant the release upon cash payment to the commissioner of
15 percent of the appraised value of the sale, plus eight percent interest on the appraised
value of the sale from the date of purchase to the date of release while retaining, or upon
repayment of, the permit's down payment and bid guarantee deposit requirement.
    Subd. 5. Return of security. Any security required under this section shall be
returned to the purchaser within 60 days after the final scale.

    Sec. 30. Minnesota Statutes 2012, section 90.162, is amended to read:
90.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
In lieu of the bond or cash security deposit equal to the value of all timber covered
by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
in writing on a form prescribed by the attorney general to give good and valid surety to the
state of Minnesota equal to the purchase price for any designated cutting block identified
on the permit before the date the purchaser enters upon the land to begin harvesting the
timber on the designated cutting block.

    Sec. 31. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
With the completion of the presale conference requirement under section 90.151,
subdivision 6, a permit holder may access the permit area in advance of the permit being
fully secured as required by section 90.161, for the express purpose of clearing approved
landings and logging roads. No cutting of state timber except that incidental to the clearing
of approved landings and logging roads is allowed under this section.

    Sec. 32. Minnesota Statutes 2012, section 90.171, is amended to read:
90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
Any permit sold at public auction may be assigned upon written approval of the
commissioner. The assignment of any permit shall be signed and acknowledged by the
permit holder. The commissioner shall not approve any assignment until the assignee has
been determined to meet the qualifications of a responsible bidder and has given to the state
a bond security deposit which shall be substantially in the form of, and shall be deemed
of the same effect as, the bond security deposit required of the original purchaser. The
commissioner may accept the an agreement of the assignee and any corporate surety upon
such an original bond, substituting the assignee in the place of such the original purchaser
and continuing such the original bond in full force and effect, as to the assignee. Thereupon
but not otherwise the permit holder making the assignment shall be released from all
liability arising or accruing from actions taken after the assignment became effective.

    Sec. 33. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
30 days of the date thereof, it shall bear interest at the rate determined pursuant to section
16A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
less. If the amount is not paid within 60 days, the commissioner shall place the account in
the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
collect the same. When deemed in the best interests of the state, the commissioner shall
take possession of the timber for which an amount is due wherever it may be found and
sell the same informally or at public auction after giving reasonable notice.
(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
of seizure and sale; and, second, to the payment of the amount due for the timber, with
interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
not realized to pay these amounts in full, the balance shall be collected by the attorney
general. Neither payment of the amount, nor the recovery of judgment therefor, nor
satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
on any bond security deposit given pursuant to this chapter, or preclude the state from
afterwards claiming that the timber was cut or removed contrary to law and recovering
damages for the trespass thereby committed, or from prosecuting the offender criminally.

    Sec. 34. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land in lots not exceeding 500 cords in volume, without formalities but for
not less than the full appraised value thereof, to any person. No sale shall be made under
this section to any person holding two more than four permits issued hereunder which are
still in effect;. except that (1) a partnership as defined in chapter 323, which may include
spouses but which shall provide evidence that a partnership exists, may be holding two
permits for each of not more than three partners who are actively engaged in the business
of logging or who are the spouses of persons who are actively engaged in the business of
logging with that partnership; and (2) a corporation, a majority of whose shares and voting
power are owned by natural persons related to each other within the fourth degree of
kindred according to the rules of the civil law or their spouses or estates, may be holding
two permits for each of not more than three shareholders who are actively engaged in the
business of logging or who are the spouses of persons who are actively engaged in the
business of logging with that corporation.

    Sec. 35. Minnesota Statutes 2012, section 90.193, is amended to read:
90.193 EXTENSION OF TIMBER PERMITS.
The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
an one regular extension of for one year. A written request for the regular extension must
be received by the commissioner before the permit expires. The request must state the
reason the extension is necessary and be signed by the permit holder. An interest rate of
eight percent may be charged for the period of extension.

    Sec. 36. Minnesota Statutes 2012, section 90.195, is amended to read:
90.195 SPECIAL USE AND PRODUCT PERMIT.
(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
fuelwood per year for personal use from either or both of the following sources: (1) dead,
down, and diseased damaged trees; (2) other trees that are of negative value under good
forest management practices. The permits may be issued for a period not to exceed one
year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
shall not exceed the current market value of fuelwood of similar species, grade, and volume
that is being sold in the area where the salvage or cutting is authorized under the permit.
(b) The commissioner may issue a special product permit under section 89.42 for
commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
and other products derived from forest management activities. The value of the products
is the current market value of the products that are being sold in the area. The permit may
be issued for a period not to exceed one year and the commissioner shall charge a fee for
the permit as provided under section 90.041, subdivision 10.
(c) The commissioner may issue a special use permit for incidental volumes of
timber from approved right-of-way road clearing across state land for the purpose of
accessing a state timber permit. The permit shall include the volume and value of timber
to be cleared and may be issued for a period not to exceed one year. A presale conference
as required under section 90.151, subdivision 6, must be completed before the start of
any activities under the permit.

    Sec. 37. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
holder as determined on a final statement transmitted pursuant to section 90.181 or a
refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
(a) , shall be paid to the permit holder according to section 16A.124 unless the refund is
credited on another permit as provided in this chapter.

    Sec. 38. Minnesota Statutes 2012, section 90.211, is amended to read:
90.211 PURCHASE MONEY, WHEN FORFEITED.
If the holder of an effective permit begins to cut and then fails to cut complete any
part thereof of the permit before the expiration of the permit, the permit holder shall
nevertheless pay the price therefor; but under no circumstances shall timber be cut after
the expiration of the permit or extension thereof.

    Sec. 39. Minnesota Statutes 2012, section 90.221, is amended to read:
90.221 TIMBER SALES RECORDS.
The commissioner shall keep timber sales records, including the description of each
tract of land from which any timber is sold; the date of the report of the state appraisers;
the kind, amount, and value of the timber as shown by such report; the date of the sale;
the price for which the timber was sold; the name of the purchaser; the number, date
of issuance and date of expiration of each permit; the date of any assignment of the
permit; the name of the assignee; the dates of the filing and the amounts of the respective
bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
the amount of timber taken from the land; the date of the report of the scaler and state
appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
amount paid for such timber and the date of payment.

    Sec. 40. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
with either a timber sale permittee, or the purchaser of the cut products, or both, so
that the scaling of the cut timber and the collection of the payment for the same can be
consummated by the consumer state. Such an agreement shall be approved as to form and
content by the attorney general and shall provide for a bond or cash in lieu of a bond and
such other safeguards as are necessary to protect the interests of the state. The scaling
and payment collection procedure may be used for any state timber sale, except that no
permittee who is also the consumer shall both cut and scale the timber sold unless such
scaling is supervised by a state scaler.

    Sec. 41. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
of any timber hereafter unlawfully cut upon or taken from any land owned by the state
wherever found and may sell the same informally or at public auction after giving such
notice as the commissioner deems reasonable and after deducting all the expenses of such
sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
fund; and when any timber so unlawfully cut has been intermingled with any other timber
or property so that it cannot be identified or plainly separated therefrom the commissioner
may so seize and sell the whole quantity so intermingled and, in such case, the whole
quantity of such timber shall be conclusively presumed to have been unlawfully taken
from state land. When the timber unlawfully cut or removed from state land is so seized
and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
caused the cutting or removal of, any such timber from the full liability imposed by this
chapter for the trespass so committed, but the net amount realized from such sale shall
be credited on whatever judgment is recovered against such trespasser, if the trespass
was deemed to be casual and involuntary.

    Sec. 42. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
reward to be paid to a person giving to the proper authorities any information that leads to
the conviction of a person violating this chapter. The reward is limited to the greater of
$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
The commissioner shall pay the reward from funds appropriated for that purpose or from
receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
state appraisers, scalers, conservation officers, or licensed peace officers.

    Sec. 43. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
shall accept any compensation or gratuity for services as such from any other source
except the state of Minnesota, or any state scaler, or other person authorized to scale state
timber, or state appraiser, who shall make any false report, or insert in any such report any
false statement, or shall make any such report without having examined the land embraced
therein or without having actually been upon the land, or omit from any such report any
statement required by law to be made therein, or who shall fail to report any known trespass
committed upon state lands, or who shall conspire with any other person in any manner, by
act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
between the facts and the scale returned by any such person scaling timber for the state
shall be considered prima facie evidence that such person is guilty of violating this statute.
(b) No such appraiser or scaler who has been once discharged for cause shall ever
again be appointed. This provision shall not apply to resignations voluntarily made by and
accepted from such employees.

    Sec. 44. Minnesota Statutes 2012, section 282.01, subdivision 1a, is amended to read:
    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state
agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
must be withheld from sale or lease to others for a maximum of six months. The request
must be submitted to the county auditor. Upon receipt, the county auditor must withhold
the parcel from sale or lease to any other party for six months, and must confirm the
starting date of the six-month withholding period to the requesting agency or subdivision.
If the request is from a governmental subdivision of the state, the governmental
subdivision must pay the maintenance costs incurred by the county during the period the
parcel is withheld. The county board may approve a sale or conveyance to the requesting
party during the withholding period. A conveyance of the property to the requesting
party terminates the withholding period.
A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months
of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given notice to the
requesting state agency or governmental subdivision of the state that the county intends to
sell or otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by the county board, for
their market value as determined by the county board, to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property. When the term "market value" is used in this section, it
means an estimate of the full and actual market value of the parcel as determined by the
county board, but in making this determination, the board and the persons employed by or
under contract with the board in order to perform, conduct, or assist in the determination,
are exempt from the licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands may be released from the trust in favor of
the taxing districts on application to the county board by a state agency for an authorized
use at not less than their market value as determined by the county board.
(d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:
(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market, or the reduced price will
lead to the development of affordable housing; and
(2) the governmental subdivision or state agency has documented its specific plans
for correcting the blighted conditions or developing affordable housing, and the specific
law or laws that empower it to acquire real property in furtherance of the plans.
If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quit claim
deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
conveyance document that releases the property from the trust in favor of the taxing
districts.
(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed by the commissioner of revenue in the name of the state to a
governmental subdivision for an authorized public use, if an application is submitted to the
commissioner which includes a statement of facts as to the use to be made of the tract and
the favorable recommendation of the county board. For the purposes of this paragraph,
"authorized public use" means a use that allows an indefinite segment of the public to
physically use and enjoy the property in numbers appropriate to its size and use, or is for a
public service facility. Authorized public uses as defined in this paragraph are limited to:
(1) a road, or right-of-way for a road;
(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
including transit ways, park-and-ride lots, transit stations, maintenance and garage
facilities, and other facilities related to a public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police stations, lift stations, water
towers, sanitation facilities, water treatment facilities, and administrative offices.
No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
(f) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision of the state by quit claim deed
on behalf of the state upon the favorable recommendation of the county board if the
governmental subdivision has certified to the board that prior to forfeiture the subdivision
was entitled to the parcel under a written development agreement or instrument, but
the conveyance failed to occur prior to forfeiture. No compensation or consideration is
required for, and no conditions attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to the association of a common interest community by quit claim deed
upon the favorable recommendation of the county board if the association certifies to the
board that prior to forfeiture the association was entitled to the parcel under a written
agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
the state for less than its market value for either: (1) creation or preservation of wetlands;
(2) drainage or storage of storm water under a storm water management plan; or (3)
preservation, or restoration and preservation, of the land in its natural state. The deed must
contain a restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the
governmental subdivision may reconvey the property to the state in trust for the taxing
districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph shall be refunded upon a
reconveyance, but the amount paid for a conveyance under this paragraph may be taken
into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the commissioner
of natural resources determines there is a mineral use potential, the sale is subject to the
approval of the commissioner of natural resources.
(i) A park and recreation board in a city of the first class is a governmental
subdivision for the purposes of this section.
(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
by the commissioner of revenue in the name of the state to a governmental subdivision for
a school forest under section 89.41. An application that includes a statement of facts as
to the use to be made of the tract and the favorable recommendation of the county board
and the commissioner of natural resources must be submitted to the commissioner of
revenue. No monetary compensation or consideration is required for the conveyance, but
the conveyance is subject to the conditional use and reversion provisions of subdivisions
1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
property back to the state in trust for the taxing districts. The deed of reconveyance is
subject to approval by the commissioner of revenue.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 45. Minnesota Statutes 2012, section 282.01, subdivision 1d, is amended to read:
    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years
from the date of any conveyance of tax-forfeited land to a governmental subdivision for
an authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1)
with the approval of the county board, purchase the property for an authorized public
purpose at the present market value as determined by the county board, or (2) authorize
the proper officers to convey the land, or the part of the land not required for an authorized
public use, to the state of Minnesota in trust for the taxing districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall, upon proper
application submitted by the county auditor, convey the property on behalf of the state by
quit claim deed to the subdivision free of a use restriction and the possibility of reversion
or defeasement. If the governing body decides to reconvey the property to the state under
this clause, the officers shall execute a deed of conveyance immediately. The conveyance
is subject to the approval of the commissioner and its form must be approved by the
attorney general. For 15 years from the date of the conveyance, there is no failure to put
the land to the authorized public use and no abandonment of that use if a formal plan of
the governmental subdivision, including, but not limited to, a comprehensive plan or land
use plan, shows an intended future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date
of the conveyance if the commissioner determines upon written application from the
subdivision that the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no current plans
to change the use of the lands. Prior to conveying the property, the commissioner shall
inquire whether the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or obligation of
the subdivision. If the county does not object within 60 days, and the commissioner makes
a favorable determination, the commissioner shall issue a quit claim deed on behalf of
the state unconditionally conveying the property to the governmental subdivision. For
purposes of this paragraph, demonstration of an intended future use for the authorized
public use in a formal plan of the governmental subdivision does not constitute use for
that authorized public use.
(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The
county board may authorize the county treasurer to deduct the amount of the recording
fees from future settlements of property taxes to the subdivision.
(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by
the commissioner of revenue, regardless of when the deed for the authorized public use
was executed, is released from the use restriction and reverter, and any use restriction or
reverter for which no declaration of reversion has been recorded with the county recorder
or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
years from the date the deed was acknowledged; or (3) final resolution of an appeal to
district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 46. Laws 2011, First Special Session chapter 2, article 4, section 30, is amended to
read:
    Sec. 46. STATE TREE NURSERY PROGRAM RESTRUCTURING;
REPORT REQUIRED.
(a) Beginning July 1, 2011, the commissioner of natural resources shall limit all new
plantings at the Badoura State Nursery state tree nurseries to the planting of stock for
research or, use on public lands or private conservation lands with permanent protection,
or sale of coniferous stock to soil and water conservation districts for use on private or
public lands for conservation projects. Excess plant material may be sold or traded to
private wholesale nurseries.
(b) By January 15, 2012, the commissioner of natural resources shall submit a budget
and financial plan for the state nurseries to the chairs and ranking minority members of
the house of representatives and senate committees and divisions with jurisdiction over
environment and natural resources policy and finance. The plan shall include a long-term
business plan to operate the Badoura State Nursery in a manner that is self-sufficient. The
plan shall also include options for the General C.C. Andrews State Nursery.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2011.

    Sec. 47. PERMIT CANCELLATION.
Upon written request submitted by a permit holder to the commissioner of natural
resources on or before June 1, 2015, the commissioner shall cancel any provision in a
timber sale permit sold prior to September 1, 2012, that requires the security payment for,
or removal of all or part of the balsam fir when the permit contains at least 50 cords of
balsam fir. The remaining provisions of the permit remain in effect. The permit holder
may be required to fell or pile the balsam fir to meet management objectives.

    Sec. 48. REPEALER.
Minnesota Statutes 2012, sections 90.163; 90.173; and 90.41, subdivision 2, are
repealed.