1.1                          A bill for an act 
  1.2             relating to natural resources; modifying the forest 
  1.3             resources Interagency Information Cooperative; 
  1.4             modifying the State Timber Act; amending Minnesota 
  1.5             Statutes 2002, sections 89A.09, subdivision 1; 90.02; 
  1.6             90.181, subdivision 2; 90.191, subdivision 2, by 
  1.7             adding a subdivision; 90.252; Minnesota Statutes 2003 
  1.8             Supplement, sections 90.101, subdivision 1; 90.121; 
  1.9             90.14; 90.151, subdivision 1; repealing Minnesota 
  1.10            Statutes 2003 Supplement, section 90.191, subdivisions 
  1.11            3, 4. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2002, section 89A.09, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [ESTABLISHMENT.] The commissioner dean of 
  1.16  the University of Minnesota, College of Natural Resources, shall 
  1.17  be encouraged to coordinate the establishment of an Interagency 
  1.18  Information Cooperative.  Members of the cooperative must 
  1.19  include: 
  1.20     (1) the University of Minnesota, College of Natural 
  1.21  Resources; 
  1.22     (2) the University of Minnesota, Natural Resources Research 
  1.23  Institute; 
  1.24     (3) the department; 
  1.25     (2) (4) the Land Management Information Center; 
  1.26     (3) (5) the Minnesota Association of County Land 
  1.27  Commissioners; 
  1.28     (4) (6) the United States Forest Service; and 
  2.1      (5) (7) other organizations as deemed appropriate by the 
  2.2   commissioner members. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 90.02, is amended 
  2.4   to read: 
  2.5      90.02 [CITATION, STATEMENT OF POLICY.] 
  2.6      This chapter may be cited as the State Timber Act.  
  2.7      It is the intent and desire of the Minnesota legislature to 
  2.8   provide equal opportunity for all segments of our society to 
  2.9   participate in the sale process; and attempt to prevent the 
  2.10  purchase or acquisition of excessive volumes of the state's 
  2.11  timber resources by any one individual or corporation.  
  2.12     The Department of Natural Resources is directed to enact 
  2.13  rules commissioner shall establish specific timber sale 
  2.14  allocation standards to reach this objective; including 
  2.15  provision for sale of all timber species by both the informal 
  2.16  and the auction sale each method of sale specified in this 
  2.17  chapter; and maintaining reasonable proportions of volume in 
  2.18  each method of sale.  The standards shall be included in each 
  2.19  edition of the timber sales manual published by the 
  2.20  commissioner.  The standards are not subject to the rulemaking 
  2.21  provisions of chapter 14 and section 14.386 does not apply. 
  2.22     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  2.23  90.101, subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [SALE REQUIREMENTS.] The commissioner may 
  2.25  sell the timber on any tract of state land in lots not exceeding 
  2.26  6,000 cords in volume and may determine the number of sections 
  2.27  or fractional sections of land to be included in the permit area 
  2.28  covered by any one permit issued to the purchaser of timber on 
  2.29  state lands, or in any one contract or other instrument relating 
  2.30  thereto.  No timber shall be sold, except (1) to the highest 
  2.31  responsible bidder at public auction, or (2) if unsold at public 
  2.32  auction the commissioner may offer the timber for private sale 
  2.33  for a period of no more than six months after the public auction 
  2.34  to any person who pays the appraised value for the timber.  The 
  2.35  minimum price shall be the appraised value as fixed by the 
  2.36  report of the state appraiser.  Sales may include tracts in more 
  3.1   than one contiguous county or forestry administrative area and 
  3.2   shall be held either in the county or forestry administrative 
  3.3   area in which the tract is located or in an adjacent county or 
  3.4   forestry administrative area that is nearest the tract offered 
  3.5   for sale or that is most accessible to potential bidders.  In 
  3.6   adjoining counties or forestry administrative areas, sales may 
  3.7   not be held less than two hours apart. 
  3.8      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.9   90.121, is amended to read: 
  3.10     90.121 [INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 
  3.11  CORDS.] 
  3.12     (a) The commissioner may sell the timber on any tract of 
  3.13  state land in lots not exceeding 3,000 cords in volume, in the 
  3.14  same manner as timber sold at public auction under section 
  3.15  90.101, and related laws, subject to the following special 
  3.16  exceptions and limitations:  
  3.17     (1) the commissioner shall offer all tracts authorized for 
  3.18  sale by this section separately from the sale of tracts of state 
  3.19  timber made pursuant to section 90.101; 
  3.20     (2) no bidder may be awarded more than 25 percent of the 
  3.21  total tracts offered at the first round of bidding unless fewer 
  3.22  than four tracts are offered, in which case not more than one 
  3.23  tract shall be awarded to one bidder.  Any tract not sold at 
  3.24  public auction may be offered for private sale as authorized by 
  3.25  section 90.101, subdivision 1, to persons eligible under this 
  3.26  section at the appraised value; and 
  3.27     (3) no sale may be made to a person having that has more 
  3.28  than 20 full-time employees or more than 20 equivalent full-time 
  3.29  employees or that does not qualify as a small business under 
  3.30  section 645.445.  For purposes of this clause, "equivalent 
  3.31  full-time employee" includes multiple part-time employees whose 
  3.32  combined work times total 2,000 hours or the equivalent work 
  3.33  time of one full-time employee. 
  3.34     (b) The auction sale procedure set forth in this section 
  3.35  constitutes an additional alternative timber sale procedure 
  3.36  available to the commissioner and is not intended to replace 
  4.1   other authority possessed by the commissioner to sell timber in 
  4.2   lots of 3,000 cords or less. 
  4.3      Sec. 5.  Minnesota Statutes 2003 Supplement, section 90.14, 
  4.4   is amended to read: 
  4.5      90.14 [AUCTION SALE PROCEDURE.] 
  4.6      (a) All state timber shall be offered and sold by the same 
  4.7   unit of measurement as it was appraised.  The sale shall be made 
  4.8   to the person who (1) bids the highest price for all the several 
  4.9   kinds of timber as advertised, or (2) if unsold at public 
  4.10  auction, to the person who purchases at any subsequent sale 
  4.11  authorized under section 90.101, subdivision 1.  The 
  4.12  commissioner may refuse to approve any and all bids received and 
  4.13  cancel a sale of state timber for good and sufficient reasons.  
  4.14     (b) The purchaser at any sale of timber shall, immediately 
  4.15  upon the approval of the bid, or, if unsold at public auction, 
  4.16  at the time of purchase at a subsequent sale under section 
  4.17  90.101, subdivision 1, pay to the commissioner a down payment of 
  4.18  15 percent of the appraised value.  In case any purchaser fails 
  4.19  to make such payment, the purchaser shall be liable therefor to 
  4.20  the state in a civil action, and the commissioner may reoffer 
  4.21  the timber for sale as though no bid or sale under section 
  4.22  90.101, subdivision 1, therefor had been made. 
  4.23     (c) In lieu of the scaling of state timber required by this 
  4.24  chapter, a purchaser of state timber may, at the time of payment 
  4.25  by the purchaser to the commissioner of 15 percent of the 
  4.26  appraised value, elect in writing on a form prescribed by the 
  4.27  attorney general to purchase a permit based solely on the 
  4.28  appraiser's estimate of the volume of timber described in the 
  4.29  permit, provided that the commissioner has expressly designated 
  4.30  the availability of such option for that tract on the list of 
  4.31  tracts available for sale as required under section 90.101.  A 
  4.32  purchaser who elects in writing on a form prescribed by the 
  4.33  attorney general to purchase a permit based solely on the 
  4.34  appraiser's estimate of the volume of timber described on the 
  4.35  permit does not have recourse to the provisions of section 
  4.36  90.281. 
  5.1      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  5.2   90.151, subdivision 1, is amended to read: 
  5.3      Subdivision 1.  [ISSUANCE; EXPIRATION.] (a) Following 
  5.4   receipt of the down payment for state timber sold at public 
  5.5   auction required under section 90.14 or 90.191, the commissioner 
  5.6   shall issue a numbered permit to the purchaser, in a form 
  5.7   approved by the attorney general, by the terms of which the 
  5.8   purchaser shall be authorized to enter upon the land, and to cut 
  5.9   and remove the timber therein described as designated for 
  5.10  cutting in the report of the state appraiser, according to the 
  5.11  provisions of this chapter.  The permit shall be correctly dated 
  5.12  and executed by the commissioner and signed by the purchaser.  
  5.13  If a permit is not signed by the purchaser within 60 days from 
  5.14  the date of purchase, the permit cancels and the down payment 
  5.15  for timber required under section 90.14 forfeits to the state. 
  5.16     (b) The permit shall expire no later than five years after 
  5.17  the date of sale as the commissioner shall specify or as 
  5.18  specified under section 90.191, and the timber shall be cut 
  5.19  within the time specified therein.  All cut timber, equipment, 
  5.20  and buildings not removed from the land within 90 days after 
  5.21  expiration of the permit shall become the property of the state. 
  5.22     (c) The commissioner may grant an additional period of time 
  5.23  not to exceed 120 days for the removal of cut timber, equipment, 
  5.24  and buildings upon receipt of such request by the permit holder 
  5.25  for good and sufficient reasons.  The commissioner may grant a 
  5.26  second period of time not to exceed 120 days for the removal of 
  5.27  cut timber, equipment, and buildings upon receipt of a request 
  5.28  by the permit holder for hardship reasons only. 
  5.29     (d) No permit shall be issued to any person other than the 
  5.30  purchaser in whose name the bid was made.  
  5.31     Sec. 7.  Minnesota Statutes 2002, section 90.181, 
  5.32  subdivision 2, is amended to read: 
  5.33     Subd. 2.  [DEFERRED PAYMENTS.] (a) If the amount of the 
  5.34  statement is not paid within 30 days of the date thereof, it 
  5.35  shall bear interest at the rate determined pursuant to section 
  5.36  16A.124, except that the purchaser shall not be required to pay 
  6.1   interest that totals $1 or less.  If the amount is not paid 
  6.2   within 60 days, the commissioner shall place the account in the 
  6.3   hands of the attorney general commissioner of revenue according 
  6.4   to chapter 16D, who shall proceed to collect the same.  When 
  6.5   deemed in the best interests of the state, the commissioner 
  6.6   shall take possession of the timber for which an amount is due 
  6.7   wherever it may be found and sell the same informally or at 
  6.8   public auction after giving reasonable notice.  
  6.9      (b) The proceeds of the sale shall be applied, first, to 
  6.10  the payment of the expenses of seizure and sale; and, second, to 
  6.11  the payment of the amount due for the timber, with interest; and 
  6.12  the surplus, if any, shall belong to the state; and, in case a 
  6.13  sufficient amount is not realized to pay these amounts in full, 
  6.14  the balance shall be collected by the attorney general.  Neither 
  6.15  payment of the amount, nor the recovery of judgment therefor, 
  6.16  nor satisfaction of the judgment, nor the seizure and sale of 
  6.17  timber, shall release the sureties on any bond given pursuant to 
  6.18  this chapter, or preclude the state from afterwards claiming 
  6.19  that the timber was cut or removed contrary to law and 
  6.20  recovering damages for the trespass thereby committed, or from 
  6.21  prosecuting the offender criminally.  
  6.22     Sec. 8.  Minnesota Statutes 2002, section 90.191, 
  6.23  subdivision 2, is amended to read: 
  6.24     Subd. 2.  [TIME FRAME FOR CUTTING AND REMOVAL.] Upon 
  6.25  receipt of a down payment for the full appraised value, the 
  6.26  commissioner may issue a permit according to section 90.151 to 
  6.27  cut timber within the time period specified by the commissioner, 
  6.28  which shall not exceed two years from the date of sale under any 
  6.29  supervision and provisions the commissioner deems advisable.  
  6.30  All cut timber, equipment, and buildings not removed from the 
  6.31  land within 90 days after expiration of the permit shall become 
  6.32  the property of the state.  The commissioner may grant an 
  6.33  additional period of not to exceed 120 days for the removal of 
  6.34  cut timber, equipment, and buildings upon receipt of a request 
  6.35  by the permit holder for good and sufficient reasons.  The 
  6.36  commissioner may grant a second period of time not to exceed 120 
  7.1   days for the removal of cut timber, equipment, and buildings 
  7.2   upon receipt of a request by the permit holder for hardship 
  7.3   reasons only. 
  7.4      Sec. 9.  Minnesota Statutes 2002, section 90.191, is 
  7.5   amended by adding a subdivision to read: 
  7.6      Subd. 5.  [ADDITIONAL PROCEDURE.] The sale procedure under 
  7.7   this section is an additional alternative timber sale procedure 
  7.8   available to the commissioner and is not intended to replace 
  7.9   other authority of the commissioner to sell timber in lots of 
  7.10  500 cords or less. 
  7.11     Sec. 10.  Minnesota Statutes 2002, section 90.252, is 
  7.12  amended to read: 
  7.13     90.252 [CONSUMER SCALE OF STATE TIMBER; WEIGHT MEASUREMENT 
  7.14  SERVICES; FEES.] 
  7.15     Subdivision 1.  [CONSUMER SCALING.] The commissioner may 
  7.16  enter into an agreement with either a timber sale permittee, or 
  7.17  the purchaser of the cut products, or both, so that the scaling 
  7.18  of the cut timber and the collection of the payment for the same 
  7.19  can be consummated by the consumer.  Such an agreement shall be 
  7.20  approved as to form and content by the attorney general and 
  7.21  shall provide for a bond or cash in lieu of a bond and such 
  7.22  other safeguards as are necessary to protect the interests of 
  7.23  the state.  Such a scaling and payment collection procedure may 
  7.24  be used for any state timber sale, except that no permittee who 
  7.25  is also the consumer shall both cut and scale the timber sold 
  7.26  unless such scaling is supervised by a state scaler. 
  7.27     Subd. 2.  [WEIGHT MEASUREMENT SERVICES; FEES.] The 
  7.28  commissioner may enter into an agreement with the owner or 
  7.29  operator of any weight scale inspected, tested, and approved 
  7.30  under chapter 239 to provide weight measurements for the scaling 
  7.31  of state timber according to section 90.251.  The agreement 
  7.32  shall be on a form prescribed by the attorney general, shall 
  7.33  become a part of the official record of any state timber permit 
  7.34  so scaled, and shall contain such safeguards as are necessary to 
  7.35  protect the interests of the state.  Except as otherwise 
  7.36  provided by the commissioner, the cost of any agreement to 
  8.1   provide weight measurement of state timber shall be paid by the 
  8.2   permit holder of any state timber permit so measured and the 
  8.3   cost shall be included in the statement of the amount due for 
  8.4   the permit under section 90.181, subdivision 1. 
  8.5      Sec. 11.  [REPEALER.] 
  8.6      Minnesota Statutes 2003 Supplement, section 90.191, 
  8.7   subdivisions 3 and 4, are repealed.