Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 551-H.F.No. 2410
An act relating to natural resources; sale of native
tree seed and tree planting stock; terms and
conditions governing the leasing of state timber
lands; amending Minnesota Statutes 1992, sections
89.36, subdivision 3; 89.37, by adding a subdivision;
90.101, subdivision 2; 90.151, subdivision 1; 90.161,
subdivisions 1 and 2; 90.191, subdivision 2; and
90.193; Minnesota Statutes 1993 Supplement, sections
90.101, subdivision 1; and 90.121; repealing Minnesota
Statutes 1992, section 90.151, subdivisions 13 and 14.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1992, section 89.36,
subdivision 3, is amended to read:
Subd. 3. [SALE OR EXCHANGE OF STOCK.] In carrying out the
provisions of sections 89.35 to 89.39, the commissioner may sell
to or exchange surplus tree planting stock and seed with other
states or the federal government for the following purposes:
(1) to acquire tree planting stock of a species which is in
short supply in the commissioner's inventory;
(2) to acquire tree planting stock of a species not grown
by the commissioner;
(3) to acquire tree planting stock genetically superior to
that grown by the commissioner; and
(4) to utilize tree planting stock or seed not needed for
the reforestation program in the state.
The commissioner's authority to acquire tree planting stock
under this subdivision is limited to not more than five tree
species per year. The minimum quantity of any species which may
be acquired is 20,000 trees.
Sec. 2. Minnesota Statutes 1992, section 89.37, is amended
by adding a subdivision to read:
Subd. 3b. [SALES TO NURSERIES.] To promote the
availability and use of native plant material, the commissioner
may sell native tree seed to licensed, private Minnesota
nurseries when supplies of seed from geographically adapted
sources are not available from private Minnesota seed dealers.
The commissioner may also sell native trees and shrubs in lots
of ten or more to nonprofit groups and local units of government.
Sec. 3. Minnesota Statutes 1993 Supplement, section
90.101, subdivision 1, is amended to read:
Subdivision 1. The commissioner may sell the timber on any
tract of state land in lots not exceeding $50,000 in appraised
value and may determine the number of sections or fractional
sections of land to be 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 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 90 days six months
after the public auction to any person 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. All Sales
may include tracts in more than one contiguous county and shall
be held either in the county in which the tract is located or in
an adjacent county which is nearest the tract offered for sale.
In adjoining counties, sales may not be held less than two hours
apart.
Sec. 4. Minnesota Statutes 1992, section 90.101,
subdivision 2, is amended to read:
Subd. 2. At least 30 days before the date of sale, the
commissioner shall compile a list containing a description of
each tract of land upon which any timber to be offered is
situated and a statement of the quantity of timber and of the
appraised price of each kind of timber thereon as shown by the
report of the state appraiser. The commissioner may also list
the quantity of timber of doubtful market value and the
appraised price of each kind of such timber located in other
timber types within the sale area that may be cut at the
discretion of the purchaser. Optional timber will not be
considered a part of the sale contract until the permit holder
has advised the commissioner of an intent to cut such timber.
No description shall be added after the list is posted as herein
provided and no timber shall be sold from land not described
therein in the list. Copies of the list shall be furnished to
all interested applicants. A copy of the list shall be
conspicuously posted in the office of the commissioner and in
the office of the auditor of the county in which the lands are
situated forest office or other public facility most accessible
to potential bidders at least 30 days prior to the date of sale,
and extra copies of the list shall be furnished to the county
auditor for distribution to applicants. The commissioner shall
cause a notice to be published for three consecutive weeks once
not less than one week before the date of sale in a legal
newspaper in the county or counties where the land is situated.
The notice shall state the time and place of the sale and the
location at which further information regarding the sale may be
obtained. The commissioner may give such other published or
posted notice as the commissioner deems proper to reach
prospective bidders.
Sec. 5. Minnesota Statutes 1993 Supplement, section
90.121, is amended to read:
90.121 [INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF
$15,000.]
The commissioner may sell the timber on any tract of state
land in lots not exceeding $15,000 in appraised value, 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) sales shall be at the forest office or other public
facility most accessible to potential bidders or close to where
the tract is located;
(2) the commissioner's list describing the tract, quantity
of timber, and appraised price shall be compiled not less than
30 days before the date of sale and a copy of the list posted
not less than 30 days before the date of the sale at the
location designated for the sale;
(3) notice of the sale shall be published once, not less
than one week before the date of the sale;
(4) 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 shall
be available may be offered for sale for a period of 90 days six
months for purchase by persons eligible under this section at
the appraised value;
(5) the bond or deposit required pursuant to section 90.161
or 90.173 shall be given or deposited before any cutting begins
or not later than nine months 120 days after the date of sale
purchase, whichever is earlier, provided that the commissioner
may extend the time for furnishing the bond or deposit for not
more than 30 additional days for good cause shown;
(6) in lieu of the placing of the marks M I N on cut
products as prescribed under section 90.151, subdivision 2, all
landings of cut products shall be legibly marked with the name
of the permit holder and the assigned permit number;
(7) no person may hold more than six permits issued under
this section and no sale may be made to a person holding six
permits which are still in effect or to a person having more
than 20 employees;
(8) the permit may not exceed one year three years in
duration;
(9) if the purchaser for good and sufficient reason is
unable to cut the timber within the one year permit period, the
commissioner may grant one extension for a period of up to one
year from the date of expiration of the original permit without
interest, and one additional extension of one year with interest
at the rate in effect under section 549.09 at the time the
extension is granted;
(10) if all cut timber, equipment, and buildings, are not
removed at the end of any 120-day extension period which the
commissioner may grant for removal, 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 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 $15,000 or less.
Sec. 6. Minnesota Statutes 1992, section 90.151,
subdivision 1, is amended to read:
Subdivision 1. (a) Following receipt of the down payment
for state timber sold at public auction, 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, according to the provisions of this
chapter. The permit shall be correctly dated and executed by
the commissioner or agent and signed by the purchaser.
(b) The permit shall expire no later than three five years
after the date of sale as the commissioner shall specify, and
the timber shall be cut 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.
(c) The commissioner may grant an additional period of time
not to exceed 120 days for the removal of cut timber, equipment,
and buildings upon receipt of such request by the permit holder
for good and sufficient reasons. No permit shall be issued to
any person other than the purchaser in whose name the bid was
made.
Sec. 7. Minnesota Statutes 1992, section 90.161,
subdivision 1, is amended to read:
Subdivision 1. Except as otherwise provided by law, the
purchaser of any state timber, before any timber permit shall
become effective for any purpose, shall within 90 120 days from
the date of purchase give a good and valid bond 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 therefor
and the appraisal report thereof as to quantity, less the amount
of any payment pursuant to section 90.14, which. The bond shall
be conditioned upon the faithful performance by the purchaser
and successors in interest of all the terms and conditions of
the permit and all requirements of law in respect to such timber
sales; and. The bond shall be approved in writing by the
commissioner and filed for record in the commissioner's office.
In the alternative to cash and bond as provided above
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 payment pursuant to section 90.14.
Sec. 8. Minnesota Statutes 1992, section 90.161,
subdivision 2, is amended to read:
Subd. 2. If such bond is not furnished within 90 120 days
from the date of purchase, the down payment for such timber
shall forfeit to the state, except that the commissioner may
grant an extension of time for good and sufficient reason,
provided that such any extension of time shall not exceed 30
days.
Sec. 9. Minnesota Statutes 1992, section 90.191,
subdivision 2, is amended to read:
Subd. 2. Upon receipt of payment for the full appraised
value, the commissioner may issue a permit to cut such timber
within one year two years from the date of sale under such any
supervision and provisions as the commissioner shall deem deems
advisable. If the purchaser for good and sufficient reason is
unable to cut the timber within the one-year period, an
extension of time may be granted by the commissioner. Only one
extension shall be granted and the extension shall not exceed
one year. 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. The commissioner of
natural resources may grant an additional period of time not to
exceed 120 days for the removal of cut timber, equipment, and
buildings upon receipt of such a 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 such a
request by the permit holder for hardship reasons only.
Sec. 10. Minnesota Statutes 1992, 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 extension of one year in addition to those
provided in sections 90.121, 90.151, and 90.191. A request for
the extension must be received by the commissioner 15 days
before the permit expires. The request must state the reason
the extension is necessary and be signed by the permit holder.
The value of the timber remaining to be cut will be recalculated
using current stumpage rates. Any timber cut during the period
of extension or remaining uncut at the expiration of the
extension shall be billed for at the stumpage rates determined
at the time of extension provided that in no event shall
stumpage rates be less than those in effect at the time of the
original sale. An interest rate of eight percent will be
charged as provided in section 90.151 for the period of
extension.
Sec. 11. [TEMPORARY PROVISION.]
Unless a permit specifically prohibits granting of an
extension, permits issued before August 1, 1994, shall have the
same duration as those issued on or after that date under
sections 5, 6, and 9.
Sec. 12. [REPEAL.]
Minnesota Statutes 1992, section 90.151, subdivisions 13
and 14, are repealed.
Presented to the governor May 2, 1994
Signed by the governor May 4, 1994, 3:15 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes