1.1 	A bill for an act
1.2 	relating to the permanent school fund; limiting the portion of fire suppression 
1.3 	costs that may be assessed against permanent school trust lands;amending 
1.4 	Minnesota Statutes 2010, section 16A.125, subdivision 5.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 16A.125, subdivision 5, is amended to 
1.7 	read:
1.8 		Subd. 5.Forest trust lands. (a) The term "state forest trust fund lands" as used 
1.9 	in this subdivision, means public land in trust under the Constitution set apart as "forest 
1.10 	lands under the authority of the commissioner" of natural resources as defined by section 
1.11 	89.001, subdivision 13, and the term "fire suppression" as used in this subdivision means 
1.12 	preventative measures as well as direct costs associated with preventing and extinguishing 
1.13 	fires.
1.14 	(b) The commissioner of management and budget shall credit the revenue from the 
1.15 	forest trust fund lands to the forest suspense account. The account must specify the trust 
1.16 	funds interested in the lands and the respective receipts of the lands.
1.17 	(c) After a fiscal year, the commissioner of management and budget shall certify the 
1.18 	total costs incurred for forestry during that year under appropriations for the protection, 
1.19 	improvement, administration, and management of state forest trust fund lands and 
1.20 	construction and improvement of forest roads to enhance the forest value of the lands. The 
1.21 	certificate must specify the trust funds interested in the lands and the costs by category, 
1.22 	including the costs of fire suppression. In any year, the costs for fire suppression for 
1.23 	permanent school trust fund lands must not exceed two percent of the state's total costs 
2.1 	for fire suppression activities. The commissioner of natural resources shall supply the 
2.2 	commissioner of management and budget with the information needed for the certificate.
2.3 	(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 
2.4 	suspense account during that fiscal year as follows:
2.5 	(1) the amount of the certified costs incurred by the state for forest management, 
2.6 	forest improvement, and road improvement during the fiscal year shall be transferred to 
2.7 	the forest management investment account established under section 89.039;
2.8 	(2) the balance of the certified costs incurred by the state during the fiscal year 
2.9 	shall be transferred to the general fund; and
2.10 	(3) the balance of the receipts shall then be returned prorated to the trust funds in 
2.11 	proportion to their respective interests in the lands which produced the receipts.

2.12 	EFFECTIVE DATE. This section is effective July 1, 2012, and applies to 
2.13 	distributions made on or after that date.