The managed forest land program. (FE)

Eligibility Under current law, a parcel of land is eligible for designation as MFL only if it consists of at least 20 contiguous acres. This was increased from a minimum of 10 acres under 2015 Wisconsin Act 358 . Under current law, the fact that a lake, river, stream, or flowage, a public or private road, or a railroad or utility right-of-way separates any part of the parcel from any other part does not render it noncontiguous. Under the bill, a parcel of land is eligible if it either consists of at least 20 contiguous acres or it consists of at least 10 contiguous acres and is located in a tract of land under the same ownership that contains at least one other parcel of at least 10 contiguous acres that meets the other eligibility requirements and for which designation under a single managed forest land order is sought. The bill requires that the owner of such a tract of land notify DNR of any sale or transfer of land not enrolled in MFL from the tract, as it may impact eligibility of the MFL parcels. Under the bill, the fact that a lake, river, stream, or flowage, a public or private road, or a railroad or utility right-of-way separates any part of the land from any other part does not render a parcel noncontiguous and does not render ownership of the land noncontiguous. These changes only apply to land designated as MFL by an order issued or renewed on or after April 16, 2016, which is the date on which the minimum acreage change and other eligibility changes under Act 358 first applied.

Under current law, land is not eligible for designation as MFL if a building or an improvement associated with a building is located on it. Current law specifies that an improvement includes any accessory building, structure, or fixture that is built or placed on the parcel for its benefit. The bill eliminates reference to an accessory building in the description of an improvement. The bill provides that the prohibition on buildings and improvements does not apply to a building used exclusively for storage. This change also only applies to land designated as MFL by an order issued or renewed on or after April 16, 2016.

Under current law, an owner of land that is designated as MFL may file an application with DNR to designate an additional parcel of land as MFL if the additional parcel is at least three acres in size and is contiguous to any of that designated land. Under the bill, such an additional parcel may be any size if contiguous to designated land under the same ownership, or not contiguous if it meets the minimum acreage requirements under the bill. The bill specifies that the eligibility requirements applicable to such an addition are the eligibility requirements under the order that designated the parcel to which the land is being added.

Material change to law Under current law, if a statute is enacted or a rule is promulgated during the period of an MFL order that materially changes the terms of the order, the landowner must elect between acceptance of modifications to the contract consistent with the provisions of the statute or rule or voluntary withdrawal of the land without penalty.

The bill adds that a statutory change does not constitute a material change to an order unless, in the act that makes the change, the legislature states that the act or a provision in the act makes a material change to orders entered into under prior law.

Under the bill, this first applies to the enactment of this bill, itself, which does not contain such a statement. Further, under the bill, a promulgated rule does not constitute a material change to an order unless the rule includes a statement that the rule constitutes a material change to orders entered into under prior rules and DNR includes in its report to the legislature on the proposed rule a statement that the rule constitutes a material change to orders entered into under prior rules and an analysis of this determination.

Withdrawal taxes and fees The bill clarifies that DNR is required to assess a withdrawal tax and fee against an owner of MFL who voluntarily withdraws part or all of a parcel, which was made unclear under Act 358.

Current law allows an owner of MFL to sell or otherwise transfer all or part of the owner's parcel of MFL, and the transferred land continues to be designated as MFL if it meets eligibility requirements and the transferee certifies to DNR an intent to comply with the existing management plan for the land and any amendments to the plan. If the transferred land does not meet eligibility requirements, current law requires DNR to issue an order withdrawing the land and to assess against the owner the withdrawal tax and fee. Under the bill, in this circumstance DNR may, but is not required to, assess the withdrawal tax and fee.

Under current law, an owner of MFL may request to withdraw part of a parcel and DNR must issue an order of withdrawal if DNR determines that the parcel is either unable to produce merchantable timber in the amount required by law or unsuitable, due to environmental, ecological, or economic concerns or factors, for the production of merchantable timber. Current law requires that the order withdraw only the number of acres necessary for the parcel to resume its ability to produce the required amount or to resume its sustainability to produce merchantable timber, and prohibits the assessment of a withdrawal tax or fee for the withdrawal. The bill adds that, if the land remaining in the parcel after the withdrawal does not meet eligibility requirements under the order designating the MFL, the order must withdraw the entire parcel, and if the land subject to the MFL order after the withdrawal does not meet the eligibility requirements under the MFL order, all land under the MFL order must be withdrawn. The bill maintains that the withdrawal order may not assess a withdrawal tax or fee.

Current law exempts certain transfers of MLF from the imposition of withdrawal taxes and fees, such as transfers for a public road or railroad or utility right-of-way. The bill adds such an exemption for transfers for a public purpose to a city, village, town, or county that is authorized to levy property taxes on the land.

Small land sales Under current law, generally an owner of MFL may voluntarily withdraw part of a parcel of the owner's land once per 25-year order and twice per 50-year order if the purpose for which the owner requests the withdrawal is for the sale of one to five acres of the land or for a construction site. Current law separately allows an owner of MFL to sell or transfer ownership of all or part of the owner's land an unlimited number of times per order. The bill harmonizes these provisions by removing the sale of land as a purpose for a voluntary withdrawal under the former.

Large ownerships The bill authorizes DNR to promulgate rules that subject large ownerships, meaning 1,000 or more acres of land designated as MFL under the same owner, to management plan requirements that deviate from the requirements that apply under statute.

Leasing The bill eliminates a provision authorizing an owner of MFL that is designated as closed to enter into a lease or other agreement for consideration that permits persons to engage in a recreational activity on the land. Under the bill, there are no prohibitions on leasing land under the MFL program.

Cutting Current law requires that a land owner who intends to cut merchantable timber on MFL to file with DNR a notice of intent to cut and request DNR's approval of the cutting. Current law requires DNR to approve such a cutting notice if the proposed cutting conforms to the management plan and is consistent with sound forestry practices. If not, current law requires DNR to help the owner to develop an acceptable proposal before approving the request. The bill specifies that cutting merchantable timber on MFL in a manner that is contrary to a management plan or a cutting notice is prohibited and that a violator may be subject to a forfeiture equal to 20 percent of the current value of the merchantable timber cut, based on the stumpage value, as well as withdrawal of all or a part of the MFL parcel.