HF 4576

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/13/2026 04:33 p.m.

A bill for an act
relating to education; modifying the duties of the school trust lands director;
modifying the director's required report to the Legislative Permanent School Fund
Commission; requiring a report; amending Minnesota Statutes 2024, section
127A.353, subdivision 4, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 127A.353, subdivision 4, is amended to read:

Subd. 4.

Duties; powers.

(a) The school trust lands director shall:

(1) act in a fiduciary capacity for trust beneficiaries in accordance with the principles
under section 127A.351;

(2) evaluate the school trust land asset position;

(3) determine the estimated current and potential market value of school trust lands;

(4) advise and provide recommendations to the governor on school trust land management
policies and other policies that may affect the goal of the permanent school fund under
section 127A.31;

(5) advise and provide recommendations to the Executive Council and Land Exchange
Board on all matters regarding school trust lands presented to either body;

(6) advise and provide recommendations to the commissioner of natural resources on
managing school trust lands, including but not limited to advice and recommendations on:

(i) Department of Natural Resources school trust land management plans;

(ii) leases of school trust lands;

(iii) royalty agreements on school trust lands;

(iv) land sales and exchanges;

(v) cost certification; and

(vi) deleted text begin revenue generating deleted text end new text begin revenue-generating new text end options;

(7) serve as temporary trustee of school trust lands for school trust lands subject to
proposed or active eminent domain proceedings;

(8) serve as temporary trustee of school trust lands pursuant to section 94.342, subdivision
5;

deleted text begin (9) submit to the Legislative Permanent School Fund Commission for review an annual
budget and management plan for the director that includes proposed legislative changes
that will improve the asset allocation of the school trust lands;
deleted text end

deleted text begin (10) deleted text end new text begin (9) new text end develop and implement a ten-year strategic plan and a 25-year framework for
management of school trust lands, in conjunction with the commissioner of natural resources,
that is updated every five years, with goals to:

(i) retain core real estate assets;

(ii) increase the value of the real estate assets and the cash flow from those assets;

(iii) rebalance the portfolio in assets with high performance potential and the strategic
disposal of selected assets;

(iv) establish priorities for management actions;

(v) balance revenue enhancement and resource stewardship; and

(vi) advance strategies on school trust lands to capitalize on ecosystem services markets;
and

deleted text begin (11) keep the beneficiaries, governor, legislature, and the public informed about the
work of the director by reporting deleted text end new text begin (10) report new text end to the Legislative Permanent School Fund
Commission deleted text begin in a public meeting at least once during each calendar quarter deleted text end new text begin as required under
subdivision 5 new text end .

(b) In carrying out the duties under paragraph (a), the school trust lands director may:

(1) direct and control money appropriated to the director;

(2) establish job descriptions and employ staff within the limitations of money
appropriated to the director;

(3) enter into interdepartmental agreements with any other state agency;

(4) enter into joint powers agreements under chapter 471;

(5) evaluate and initiate real estate development projects on school trust lands in
conjunction with the commissioner of natural resources and with the advice of the Legislative
Permanent School Fund Commission to generate long-term economic return to the permanent
school fund; and

(6) submit recommendations on strategies for school trust land leases, sales, or exchanges
to the commissioner of natural resources and the Legislative Permanent School Fund
Commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 127A.353, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin (a) By January 15 each year, the school trust lands director must submit
a written report to the Legislative Permanent School Fund Commission. The report must
inform trust beneficiaries, the governor, the legislature, and the public about school trust
land management activities, and must include information on:
new text end

new text begin (1) the director's efforts to develop and advocate for sustainable asset management
strategies that reflect undivided loyalty to the trust beneficiaries;
new text end

new text begin (2) school trust land management policies and activities, including new or emerging
revenue-generating opportunities;
new text end

new text begin (3) the financial position of school trust land assets, including management costs for the
preceding fiscal year and the revenues deposited in the permanent school fund;
new text end

new text begin (4) recommended statutory changes that would improve asset allocation, enhance financial
outcomes, or otherwise strengthen the long-term performance of school trust lands; and
new text end

new text begin (5) amounts distributed from the permanent school fund to Minnesota's public school
districts and charter schools in the preceding fiscal year.
new text end

new text begin (b) The commissioner of natural resources and the commissioner of education must
provide the director with the data necessary to complete the report.
new text end

new text begin (c) The report must be submitted in accordance with section 3.195.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end