1.1............... moves to amend H.F. No. 1395 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:
1.4    Subdivision 1. Classification as conservation or nonconservation. It is the
1.5general policy of this state to encourage the best use of tax-forfeited lands, recognizing
1.6(a) When acting on behalf of the state under laws allowing the county board to classify
1.7and manage tax-forfeited lands held by the state in trust for the local units as provided in
1.8section 281.25, the county board has the discretion to decide that some lands in public
1.9ownership should be retained and managed for public benefits while other lands should be
1.10returned to private ownership. Parcels of land becoming the property of the state in trust
1.11under law declaring the forfeiture of lands to the state for taxes must be classified by the
1.12county board of the county in which the parcels lie as conservation or nonconservation. In
1.13making the classification the board shall consider the present use of adjacent lands, the
1.14productivity of the soil, the character of forest or other growth, accessibility of lands
1.15to established roads, schools, and other public services, their peculiar suitability or
1.16desirability for particular uses, and the suitability of the forest resources on the land for
1.17multiple use, and sustained yield management. The classification, furthermore, must: (1)
1.18encourage and foster a mode of land utilization that will facilitate the economical and
1.19adequate provision of transportation, roads, water supply, drainage, sanitation, education,
1.20and recreation; (2) facilitate reduction of governmental expenditures; (3) conserve and
1.21develop the natural resources; and (4) protect and sustain important environmental and
1.22ecological systems; and (5) foster and develop agriculture and other industries in the
1.23districts and places best suited to them.
1.24In making the classification the county board may use information made available
1.25by any office or department of the federal, state, or local governments, or by any other
1.26person or agency possessing pertinent information at the time the classification is made.
1.27The lands may be reclassified from time to time as the county board considers necessary
2.1or desirable, except for conservation lands held by the state free from any trust in favor of
2.2any taxing district.
2.3If the lands are located within the boundaries of an organized town, with taxable
2.4valuation in excess of $20,000, or incorporated municipality, the classification or
2.5reclassification and sale must first be approved by the town board of the town or the
2.6governing body of the municipality in which the lands are located. The town board of
2.7the town or the governing body of the municipality is considered to have approved
2.8the classification or reclassification and sale if the county board is not notified of the
2.9disapproval of the classification or reclassification and sale within 60 days of the date the
2.10request for approval was transmitted to the town board of the town or governing body
2.11of the municipality. If the town board or governing body desires to acquire any parcel
2.12lying in the town or municipality by procedures authorized in this section, it must file a
2.13written application with the county board to withhold the parcel from public sale. The
2.14application must be filed within 60 days of the request for classification or reclassification
2.15and sale. The county board shall then withhold the parcel from public sale for six months.
2.16A municipality or governmental subdivision shall pay maintenance costs incurred by
2.17the county during the six-month period while the property is withheld from public sale,
2.18provided the property is not offered for public sale after the six-month period. A clerical
2.19error made by county officials does not serve to eliminate the request of the town board
2.20or governing body if the board or governing body has forwarded the application to the
2.21county auditor. If the town board or governing body of the municipality fails to submit an
2.22application and a resolution of the board or governing body to acquire the property within
2.23the withholding period, the county may offer the property for sale upon the expiration of
2.24the withholding period.
2.25(b) Whenever the county board deems it appropriate, the board may hold a meeting
2.26for the purpose of reclassifying tax-forfeited land that has not been sold or released from
2.27the trust. The criteria and procedures for reclassification are the same as those required for
2.28an initial classification.
2.29(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands,
2.30the county board must give notice of its intent to meet for that purpose as provided in this
2.31paragraph. The notice must be given no more than 90 days and no less than 60 days before
2.32the date of the meeting; provided that if the meeting is rescheduled, notice of the new
2.33date, time, and location must be given at least 14 days before the date of the rescheduled
2.34meeting. The notice must be posted on a Web site. The notice must also be mailed or
2.35otherwise delivered to each person who has filed a request for notice of special meetings
2.36with the public body, regardless of whether the matter is considered at a regular or special
3.1meeting. The notice must be mailed or delivered at least 60 days before the date of the
3.2meeting. If the meeting is rescheduled, notice of the new date, time, and location must be
3.3mailed or delivered at least 14 days before the date of the rescheduled meeting. The public
3.4body shall publish the notice once, at least 30 days before the meeting, in a newspaper of
3.5general circulation within the area of the public body's authority. The board must also mail
3.6a notice by electronic means to each person who requests notice of meetings dealing with
3.7this subject and who agrees as provided in chapter 325L to accept notice that is mailed
3.8by electronic means. Receipt of actual notice under the conditions specified in section
3.913D.04, subdivision 7, satisfies the notice requirements of this paragraph.
3.10The board may classify or reclassify tax-forfeited lands at any regular or special
3.11meeting, as those terms are defined in chapter 13D and may conduct only this business, or
3.12this business as well as other business or activities at the meeting.
3.13(d) At the meeting, the county board must allow any person or agency possessing
3.14pertinent information to make or submit comments and recommendations about the
3.15pending classification or reclassification. In addition, representatives of governmental
3.16entities in attendance must be allowed to describe plans, ideas, or projects that may
3.17involve use or acquisition of the property by that or another governmental entity. The
3.18county board must solicit and consider any relevant components of current municipal or
3.19metropolitan comprehensive land use plans that incorporate the area in which the land
3.20is located. After allowing testimony, the board may classify, reclassify, or delay taking
3.21action on any parcel or parcels. In order for a state agency or a governmental subdivision
3.22of the state to preserve its right to request a purchase or other acquisition of a forfeited
3.23parcel, it may, at any time following forfeiture, file a written request to withhold the parcel
3.24from sale or lease to others under the provisions of subdivision 1a.
3.25(e) When classifying, reclassifying, appraising, and selling lands under this chapter,
3.26the county board may designate the tracts as assessed and acquired, or may by resolution
3.27provide for the subdivision of the tracts into smaller units or for the grouping of several
3.28tracts into one tract when the subdivision or grouping is deemed advantageous for
3.29conservation or sale purposes. This paragraph does not authorize the county board to
3.30subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
3.31from sale under section 282.018, subdivision 1.
3.32(f) A county board may by resolution elect to use the classification and
3.33reclassification procedures provided in paragraphs (g), (h), and (i), instead of the
3.34procedures provided in paragraphs (b), (c), and (d). Once an election is made under this
3.35paragraph, it is effective for a minimum of five years.
4.1(g) The classification or reclassification of tax-forfeited land that has not been sold or
4.2released from the trust may be made by the county board using information made available
4.3to it by any office or department of the federal, state, or local governments, or by any other
4.4person or agency possessing pertinent information at the time the classification is made.
4.5(h) If the lands are located within the boundaries of an organized town or
4.6incorporated municipality, a classification or reclassification and sale must first be
4.7approved by the town board of the town or the governing body of the municipality in
4.8which the lands are located. The town board of the town or the governing body of the
4.9municipality is considered to have approved the classification or reclassification and sale
4.10if the county board is not notified of the disapproval of the classification or reclassification
4.11and sale within 60 days of the date the request for approval was transmitted to the town
4.12board of the town or governing body of the municipality. If the town board or governing
4.13body disapproves of the classification or reclassification and sale, the county board must
4.14follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must
4.15additionally cause to be published in a newspaper a notice of the date, time, location, and
4.16purpose of the required meeting.
4.17(i) If a town board or a governing body of a municipality desires to acquire any
4.18parcel lying in the town or municipality by procedures authorized in this section, it may
4.19file a written request under subdivision 1a, paragraph (a).
4.20EFFECTIVE DATE.This section is effective July 1, 2010.

4.21    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:
4.22    Subd. 1a. Conveyance; generally to public entities. (a) Upon written request
4.23from a state agency or a governmental subdivision of the state, a parcel of unsold
4.24tax-forfeited land must be withheld from sale or lease to others for a maximum of six
4.25months. The request must be submitted to the county auditor. Upon receipt, the county
4.26auditor must withhold the parcel from sale or lease to any other party for six months, and
4.27must confirm the starting date of the six-month withholding period to the requesting
4.28agency or subdivision. If the request is from a governmental subdivision of the state, the
4.29governmental subdivision must pay the maintenance costs incurred by the county during
4.30the period the parcel is withheld. The county board may approve a sale or conveyance to
4.31the requesting party during the withholding period. A conveyance of the property to the
4.32requesting party terminates the withholding period.
4.33A governmental subdivision of the state must not make, and a county auditor must
4.34not act upon, a second request to withhold a parcel from sale or lease within 18 months
4.35of a previous request for that parcel. A county may reject a request made under this
5.1paragraph if the request is made more than 30 days after the county has given notice to the
5.2requesting state agency or governmental subdivision of the state that the county intends to
5.3sell or otherwise dispose of the property.
5.4(b) Nonconservation tax-forfeited lands may be sold by the county board, for
5.5their market value as determined by the county board, to an organized or incorporated
5.6governmental subdivision of the state for any public purpose for which the subdivision is
5.7authorized to acquire property or. When the term "market value" is used in this section, it
5.8means an estimate of the full and actual market value of the parcel as determined by the
5.9county board, but in making this determination, the board and the persons employed by or
5.10under contract with the board in order to perform, conduct, or assist in the determination,
5.11are exempt from the licensure requirements of chapter 82B.
5.12(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the
5.13taxing districts on application of to the county board by a state agency for an authorized
5.14use at not less than their market value as determined by the county board.
5.15(d) Nonconservation tax-forfeited lands may be sold by the county board to an
5.16organized or incorporated governmental subdivision of the state or state agency for less
5.17than their market value if:
5.18(1) the county board determines that a sale at a reduced price is in the public interest
5.19because a reduced price is necessary to provide an incentive to correct the blighted
5.20conditions that make the lands undesirable in the open market, or the reduced price will
5.21lead to the development of affordable housing; and
5.22(2) the governmental subdivision or state agency has documented its specific plans
5.23for correcting the blighted conditions or developing affordable housing, and the specific
5.24law or laws that empower it to acquire real property in furtherance of the plans.
5.25If the sale under this paragraph is to a governmental subdivision of the state, the
5.26commissioner of revenue must convey the property on behalf of the state by quit claim
5.27deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
5.28conveyance document that releases the property from the trust in favor of the taxing
5.29districts.
5.30(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
5.31may be conveyed by the commissioner of revenue may convey by deed in the name
5.32of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a
5.33governmental subdivision for an authorized public use, if an application is submitted to
5.34the commissioner which includes a statement of facts as to the use to be made of the tract
5.35and the need therefor and the favorable recommendation of the county board. For the
5.36purposes of this paragraph, "authorized public use" means a use that allows an indefinite
6.1segment of the public to physically use and enjoy the property in numbers appropriate
6.2to its size and use, or is for a public service facility. Authorized public uses as defined
6.3in this paragraph are limited to:
6.4(1) a road, or right-of-way for a road;
6.5(2) a park that is both available to, and accessible by, the public that contains
6.6amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
6.7(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
6.8with a reasonable amount of surrounding land maintained in its natural state;
6.9(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
6.10including transit ways, park-and-ride lots, transit stations, maintenance and garage
6.11facilities, and other facilities related to a public transit system;
6.12(5) public beaches or boat launches;
6.13(6) public parking;
6.14(7) civic recreation or conference facilities; and
6.15(8) public service facilities such as fire halls, police stations, lift stations, water
6.16towers, sanitation facilities, water treatment facilities, and administrative offices.
6.17(f) The commissioner of revenue shall convey a parcel of nonconservation
6.18tax-forfeited land to a local governmental subdivision of the state by quit claim deed
6.19on behalf of the state upon the favorable recommendation of the county board if the
6.20governmental subdivision has certified to the board that prior to forfeiture the subdivision
6.21was entitled to the parcel under a written development agreement or instrument, but
6.22the conveyance failed to occur prior to forfeiture. No compensation or consideration is
6.23required for, and no conditions attach to, the conveyance.
6.24(g) The commissioner of revenue shall convey a parcel of nonconservation
6.25tax-forfeited land to the association of a common interest community by quit claim deed
6.26upon the favorable recommendation of the county board if the association certifies to the
6.27board that prior to forfeiture the association was entitled to the parcel under a written
6.28agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
6.29consideration is required for, and no conditions attach to, the conveyance.
6.30(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
6.31state for less than its market value for either: (1) creation or preservation of wetlands;
6.32(2) drainage or storage of storm water under a storm water management plan; or (3)
6.33preservation, or restoration and preservation, of the land in its natural state. The deed must
6.34contain a restrictive covenant limiting the use of the land to one of these purposes for
6.3530 years or until the property is reconveyed back to the state in trust. At any time, the
6.36governmental subdivision may reconvey the property to the state in trust for the taxing
7.1districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
7.2No part of a purchase price determined under this paragraph shall be refunded upon a
7.3reconveyance, but the amount paid for a conveyance under this paragraph may be taken
7.4into account by the county board when setting the terms of a future sale of the same
7.5property to the same governmental subdivision under paragraph (b) or (d). If the lands
7.6are unplatted and located outside of an incorporated municipality and the commissioner
7.7of natural resources determines there is a mineral use potential, the sale is subject to the
7.8approval of the commissioner of natural resources.
7.9EFFECTIVE DATE.This section is effective July 1, 2010.

7.10    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:
7.11    Subd. 1b. Conveyance; targeted neighborhood lands. (a) Notwithstanding
7.12subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as
7.13defined in section 469.201, subdivision 10 in a city of the first class, the commissioner of
7.14revenue shall convey by quit claim deed in the name of the state any tract of tax-forfeited
7.15land held in trust in favor of the taxing districts, to a political subdivision of the state that
7.16submits an application to the commissioner of revenue and the favorable recommendation
7.17of the county board. For purposes of this subdivision, the term "targeted neighborhood"
7.18has the meaning given in section 469.201, subdivision 10, except that the land must be
7.19located within a first class city.
7.20(b) The application under paragraph (a) must include a statement of facts as to the
7.21use to be made of the tract, the need therefor, and a resolution, adopted by the governing
7.22body of the political subdivision, finding that the conveyance of a tract of tax-forfeited
7.23land to the political subdivision is necessary to provide for the redevelopment of land as
7.24productive taxable property. Deeds of conveyance issued under paragraph (a) are not
7.25conditioned on continued use of the property for the use stated in the application.
7.26EFFECTIVE DATE.This section is effective July 1, 2010.

7.27    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:
7.28    Subd. 1c. Deed of conveyance; form; approvals. The deed of conveyance for
7.29property conveyed for a an authorized public use under the authorities in subdivision
7.301a, paragraph (e), must be on a form approved by the attorney general and must be
7.31conditioned on continued use for the purpose stated in the application as provided in this
7.32section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
7.33of the estate occurs by operation of law and without the requirement for any affirmative
8.1act by or on behalf of the state when there is a failure to put the property to the approved
8.2authorized public use for which it was conveyed, or an abandonment of that use, except as
8.3provided in subdivision 1d.
8.4EFFECTIVE DATE.This section is effective July 1, 2010.

8.5    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:
8.6    Subd. 1d. Reverter for failure to use; conveyance to state. (a) If after three years
8.7from the date of the conveyance a governmental subdivision to which tax-forfeited land
8.8has been conveyed for a specified an authorized public use as provided in this section
8.9subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the
8.10governing body of the subdivision may, must: (1) with the approval of the county board,
8.11purchase the property for an authorized public purpose at the present appraised market
8.12value as determined by the county board. In that case, the commissioner of revenue shall,
8.13upon proper written application approved by the county board, issue an appropriate deed
8.14to the subdivisions free of a use restriction and reverter. The governing body may also, or
8.15(2) authorize the proper officers to convey the land, or the part of the land not required for
8.16an authorized public use, to the state of Minnesota. in trust for the taxing districts. If the
8.17governing body purchases the property under clause (1), the commissioner of revenue
8.18shall, upon proper application submitted by the county auditor, convey the property on
8.19behalf of the state by quit claim deed to the subdivision free of a use restriction and the
8.20possibility of reversion or defeasement. If the governing body decides to reconvey the
8.21property to the state under this clause, the officers shall execute a deed of conveyance
8.22immediately. The conveyance is subject to the approval of the commissioner and its form
8.23must be approved by the attorney general. A sale, lease, transfer, or other conveyance
8.24of tax-forfeited lands by a housing and redevelopment authority, a port authority, an
8.25economic development authority, or a city as authorized by chapter 469 is not an
8.26abandonment of use and the lands shall not be reconveyed to the state nor shall they
8.27revert to the state. A certificate made by a housing and redevelopment authority, a port
8.28authority, an economic development authority, or a city referring to a conveyance by it
8.29and stating that the conveyance has been made as authorized by chapter 469 may be filed
8.30with the county recorder or registrar of titles, and the rights of reverter in favor of the state
8.31provided by subdivision 1e will then terminate. No vote of the people is required for the
8.32conveyance. For the purposes of this paragraph, there is no failure to put the land to the
8.33authorized public use and no abandonment of that use if a formal plan of the governmental
8.34subdivision, including, but not limited to, a comprehensive plan or land use plan that
8.35shows an intended future use of the land for the authorized public use.
9.1(b) Property held by a governmental subdivision of the state under a conditional use
9.2deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue on or
9.3after January 1, 2007, may be acquired by that governmental subdivision after 15 years
9.4from the date of the conveyance if the commissioner determines upon written application
9.5from the subdivision that the subdivision has in fact put the property to the authorized
9.6public use for which it was conveyed, and the subdivision has made a finding that it
9.7has no current plans to change the use of the lands. Prior to conveying the property, the
9.8commissioner shall inquire whether the county board where the land is located objects to a
9.9conveyance of the property to the subdivision without conditions and without further act
9.10by or obligation of the subdivision. If the county does not object within 60 days, and the
9.11commissioner makes a favorable determination, the commissioner shall issue a quit claim
9.12deed on behalf of the state unconditionally conveying the property to the governmental
9.13subdivision. For purposes of this paragraph, demonstration of an intended future use
9.14for the authorized public use in a formal plan of the governmental subdivision does not
9.15constitute use for that authorized public use.
9.16(c) Property held by a governmental subdivision of the state under a conditional
9.17use deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue
9.18before January 1, 2007, is released from the use restriction and possibility of reversion on
9.19January 1, 2022, if the county board records a resolution describing the land and citing
9.20this paragraph. The county board may authorize the county treasurer to deduct the amount
9.21of the recording fees from future settlements of property taxes to the subdivision.
9.22(d) All property conveyed under a conditional use deed executed under subdivision
9.231a, paragraph (e), by the commissioner of revenue is released from the use restriction and
9.24reverter, and any use restriction or reverter for which no declaration of reversion has been
9.25recorded with the county recorder or registrar of titles, as appropriate, is nullified on the
9.26later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or
9.27(3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens
9.28related to the appeal is recorded in the office of the county recorder or registrar of titles,
9.29as appropriate, prior to January 1, 2015.
9.30EFFECTIVE DATE.This section is effective July 1, 2010.

9.31    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
9.32to read:
9.33    Subd. 1g. Conditional use deed fees. (a) A governmental subdivision of the state
9.34applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee
10.1of $250 to the commissioner of revenue along with the application. If the application is
10.2denied, the commissioner shall refund $150 of the application fee.
10.3(b) The proceeds from the fees must be deposited in a Department of Revenue
10.4conditional use deed revolving fund. The sums deposited into the revolving fund are
10.5appropriated to the commissioner of revenue for the purpose of making the refunds
10.6described in this subdivision, and administering conditional use deed laws.
10.7EFFECTIVE DATE.This section is effective for applications received by the
10.8commissioner after June 30, 2010.

10.9    Sec. 7. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
10.10to read:
10.11    Subd. 1h. Conveyance; form. The instruments of conveyance executed and issued
10.12by the commissioner of revenue under subdivision 1a, paragraphs (c), (d), (e), (f), (g),
10.13and (h), and subdivision 1d, paragraph (b), must be on a form approved by the attorney
10.14general and are prima facie evidence of the facts stated therein and that the execution and
10.15issuance of the conveyance complies with the applicable laws.
10.16EFFECTIVE DATE.This section is effective for deeds executed by the
10.17commissioner of revenue after June 30, 2010.

10.18    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:
10.19    Subd. 2. Conservation lands; county board supervision. (a) Lands classified as
10.20conservation lands, unless reclassified as nonconservation lands, sold to a governmental
10.21subdivision of the state, designated as lands primarily suitable for forest production and
10.22sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
10.23herein provided, will must be held under the supervision of the county board of the county
10.24within which such the parcels lie. and must not be conveyed or sold unless the lands are:
10.25The county board may, by resolution duly adopted, declare lands classified as
10.26conservation lands as primarily suitable for timber production and as lands which should
10.27be placed in private ownership for such purposes. If such action be approved by the
10.28commissioner of natural resources, the lands so designated, or any part thereof, may be
10.29sold by the county board in the same manner as provided for the sale of lands classified as
10.30nonconservation lands. Such county action and the approval of the commissioner shall be
10.31limited to lands lying within areas zoned for restricted uses under the provisions of Laws
10.321939, chapter 340, or any amendments thereof.
10.33(1) reclassified as nonconservation lands;
11.1(2) conveyed to a governmental subdivision of the state under subdivision 1a;
11.2(3) released from the trust in favor of the taxing districts as provided in paragraph
11.3(b); or
11.4(4) conveyed or sold under the authority of another general or special law.
11.5(b) The county board may, by resolution duly adopted, resolve that certain lands
11.6classified as conservation lands shall be devoted to conservation uses and may submit
11.7such a resolution to the commissioner of natural resources. If, upon investigation,
11.8the commissioner of natural resources determines that the lands covered by such the
11.9resolution, or any part thereof, can be managed and developed for conservation purposes,
11.10the commissioner shall make a certificate describing the lands and reciting the acceptance
11.11thereof on behalf of the state for such purposes. The commissioner shall transmit the
11.12certificate to the county auditor, who shall note the same upon the auditor's records and
11.13record the same with the county recorder. The title to all lands so accepted shall be held
11.14by the state free from any trust in favor of any and all taxing districts and such the lands
11.15shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
11.16parks, game refuges, controlled game management areas, public shooting grounds, or
11.17other public recreational or conservation uses, and managed, controlled, and regulated
11.18for such purposes under the jurisdiction of the commissioner of natural resources and
11.19the divisions of the department.
11.20(c) All proceeds derived from the sale of timber, lease of crops of hay, or other
11.21revenue from lands under the jurisdiction of the commissioner of natural resources shall
11.22be credited to the general fund of the state.
11.23In case (d) If the commissioner of natural resources shall determine determines that
11.24any tract of land so held acquired by the state under paragraph (b) and situated within or
11.25adjacent to the boundaries of any governmental subdivision of the state is suitable for use
11.26by such the subdivision for any authorized public purpose, the commissioner may convey
11.27such the tract by deed in the name of the state to such the subdivision upon the filing
11.28with the commissioner of a resolution adopted by a majority vote of all the members
11.29of the governing body thereof, stating the purpose for which the land is desired. The
11.30deed of conveyance shall be upon a form approved by the attorney general and must be
11.31conditioned upon continued use for the purpose stated in the resolution. All proceeds
11.32derived from the sale of timber, lease of hay stumpage, or other revenue from such
11.33lands under the jurisdiction of the natural resources commissioner shall be paid into the
11.34general fund of the state.
11.35(e) The county auditor, with the approval of the county board, may lease conservation
11.36lands remaining under the jurisdiction supervision of the county board and sell timber
12.1and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
12.2therefrom shall be distributed in the same manner as provided in section 282.04.
12.3EFFECTIVE DATE.This section is effective July 1, 2010.

12.4    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:
12.5    Subd. 3. Nonconservation lands; appraisal and sale. (a) All parcels of land
12.6classified as nonconservation, except those which may be reserved, shall be sold as
12.7provided, if it is determined, by the county board of the county in which the parcels lie,
12.8that it is advisable to do so, having in mind their accessibility, their proximity to existing
12.9public improvements, and the effect of their sale and occupancy on the public burdens.
12.10Any parcels of land proposed to be sold shall be first appraised by the county board of
12.11the county in which the parcels lie. The parcels may be reappraised whenever the county
12.12board deems it necessary to carry out the intent of sections 282.01 to 282.13.
12.13(b) In an appraisal the value of the land and any standing timber on it shall be
12.14separately determined. No parcel of land containing any standing timber may be sold until
12.15the appraised value of the timber on it and the sale of the land have been approved by the
12.16commissioner of natural resources. The commissioner shall base review of a proposed
12.17sale on the policy and considerations specified in subdivision 1. The decision of the
12.18commissioner shall be in writing and shall state the reasons for it. The commissioner's
12.19decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
12.20does not apply. The county may appeal the decision of the commissioner in accordance
12.21with chapter 14.
12.22(c) In any county in which a state forest or any part of it is located, the county
12.23auditor shall submit to the commissioner at least 60 days before the first publication of the
12.24list of lands to be offered for sale a list of all lands included on the list which are situated
12.25outside of any incorporated municipality. If, at any time before the opening of the sale, the
12.26commissioner notifies the county auditor in writing that there is standing timber on any
12.27parcel of such land, the parcel shall not be sold unless the requirements of this section
12.28respecting the separate appraisal of the timber and the approval of the appraisal by the
12.29commissioner have been complied with. The commissioner may waive the requirement
12.30of the 60-day notice as to any parcel of land which has been examined and the timber
12.31value approved as required by this section.
12.32(d) If any public improvement is made by a municipality after any parcel of land has
12.33been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
12.34whole or in part against the property benefited by it, the clerk of the municipality shall
12.35certify to the county auditor, immediately upon the determination of the assessments for
13.1the improvement, the total amount that would have been assessed against the parcel of land
13.2if it had been subject to assessment; or if the public improvement is made, petitioned for,
13.3ordered in or assessed, whether the improvement is completed in whole or in part, at any
13.4time between the appraisal and the sale of the parcel of land, the cost of the improvement
13.5shall be included as a separate item and added to the appraised value of the parcel of land
13.6at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
13.7from lien for the special benefit conferred upon it by reason of the public improvement
13.8until the cost of it, including penalties, if any, is paid. The county board shall determine
13.9the amount, if any, by which the value of the parcel was enhanced by the improvement and
13.10include the amount as a separate item in fixing the appraised value for the purpose of sale.
13.11In classifying, appraising, and selling the lands, the county board may designate the tracts
13.12as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
13.13smaller units or for the grouping of several tracts into one tract when the subdivision or
13.14grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
13.15tract must be classified and appraised as such before being offered for sale. If any such
13.16lands have once been classified, the board of county commissioners, in its discretion, may,
13.17by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
13.18EFFECTIVE DATE.This section is effective July 1, 2010.

13.19    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:
13.20    Subd. 4. Sale: method, requirements, effects. The sale authorized under
13.21subdivision 3 must be conducted by the county auditor at the county seat of the county in
13.22which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
13.23be conducted in any county facility within the county. The sale must not be for less than
13.24the appraised value except as provided in subdivision 7a. The parcels must be sold for
13.25cash only and at not less than the appraised value, unless the county board of the county
13.26has adopted a resolution providing for their sale on terms, in which event the resolution
13.27controls with respect to the sale. When the sale is made on terms other than for cash only
13.28(1) a payment of at least ten percent of the purchase price must be made at the time of
13.29purchase, and the balance must be paid in no more than ten equal annual installments, or
13.30(2) the payments must be made in accordance with county board policy, but in no event
13.31may the board require more than 12 installments annually, and the contract term must not
13.32be for more than ten years. Standing timber or timber products must not be removed from
13.33these lands until an amount equal to the appraised value of all standing timber or timber
13.34products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
13.35land bearing standing timber or timber products is sold at public auction for more than
14.1the appraised value, the amount bid in excess of the appraised value must be allocated
14.2between the land and the timber in proportion to their respective appraised values. In that
14.3case, standing timber or timber products must not be removed from the land until the
14.4amount of the excess bid allocated to timber or timber products has been paid in addition
14.5to the appraised value of the land. The purchaser is entitled to immediate possession,
14.6subject to the provisions of any existing valid lease made in behalf of the state.
14.7For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
14.8is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
14.9of the purchase price for sales occurring after December 31, 1990, is subject to interest
14.10at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to
14.11change each year on the unpaid balance in the manner provided for rate changes in section
14.12549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract
14.13balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
14.14at the time that the sale occurred.
14.15EFFECTIVE DATE.This section is effective July 1, 2010.

14.16    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:
14.17    Subd. 7. County sales; notice, purchase price, disposition. The sale must
14.18commence at the time determined by the county board of the county in which the parcels
14.19are located. The county auditor shall offer the parcels of land in order in which they
14.20appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
14.21less than the appraised value, until all of the parcels of land have been offered. Then the
14.22county auditor shall sell any remaining parcels to anyone offering to pay the appraised
14.23value, except that if the person could have repurchased a parcel of property under section
14.24282.012 or 282.241, that person may not purchase that same parcel of property at the sale
14.25under this subdivision for a purchase price less than the sum of all taxes, assessments,
14.26penalties, interest, and costs due at the time of forfeiture computed under section 282.251,
14.27and any special assessments for improvements certified as of the date of sale. The sale
14.28must continue until all the parcels are sold or until the county board orders a reappraisal or
14.29withdraws any or all of the parcels from sale. The list of lands may be added to and the
14.30added lands may be sold at any time by publishing the descriptions and appraised values.
14.31The added lands must be: (1) parcels of land that have become forfeited and classified
14.32as nonconservation since the commencement of any prior sale; (2) parcels classified as
14.33nonconservation that have been reappraised; (3) parcels that have been reclassified as
14.34nonconservation; or (4) other parcels that are subject to sale but were omitted from the
14.35existing list for any reason. The descriptions and appraised values must be published in
15.1the same manner as provided for the publication of the original list. Parcels added to the
15.2list must first be offered for sale to the highest bidder before they are sold at appraised
15.3value. All parcels of land not offered for immediate sale, as well as parcels that are offered
15.4and not immediately sold, continue to be held in trust by the state for the taxing districts
15.5interested in each of the parcels, under the supervision of the county board. Those parcels
15.6may be used for public purposes until sold, as directed by the county board.
15.7EFFECTIVE DATE.This section is effective July 1, 2010.

15.8    Sec. 12. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:
15.9    Subd. 7a. City sales; alternate procedures. Land located in a home rule charter
15.10or statutory city, or in a town which cannot be improved because of noncompliance with
15.11local ordinances regarding minimum area, shape, frontage or access may be sold by the
15.12county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
15.13will encourage the approval of sale of the land by the city or town and promote its return
15.14to the tax rolls. If the physical characteristics of the land indicate that its highest and best
15.15use will be achieved by combining it with an adjoining parcel and the city or town has not
15.16adopted a local ordinance governing minimum area, shape, frontage, or access, the land
15.17may also be sold pursuant to this subdivision. If the property consists of an undivided
15.18interest in land or land and improvements, the property may also be sold to the other
15.19owners under this subdivision. The sale of land pursuant to this subdivision shall be
15.20subject to any conditions imposed by the county board pursuant to section 282.03. The
15.21governing body of the city or town may recommend to the county board conditions to be
15.22imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
15.23the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
15.24another means of sale. The land shall be sold to the highest bidder but in no event shall the
15.25land and may be sold for less than its appraised value. All owners of land adjoining the
15.26land to be sold shall be given a written notice at least 30 days prior to the sale.
15.27This subdivision shall be liberally construed to encourage the sale and utilization
15.28of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
15.29compliance with land use ordinances.
15.30EFFECTIVE DATE.This section is effective July 1, 2010.

15.31    Sec. 13. REPEALER.
15.32Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,
15.33are repealed.
16.1EFFECTIVE DATE.This section is effective July 1, 2010."
16.2Delete the title and insert:
16.4relating to real property; modifying procedures relating to uses and conveyances
16.5of tax-forfeited property;amending Minnesota Statutes 2008, section 282.01,
16.6subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions; repealing
16.7Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, 11; 383A.76."