<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 2244<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to the permanent school fund; changing the Permanent School Fund <br />
         		<a id="pl.1.4"></a><var>1.4</var>Advisory Committee into a legislative commission; establishing a permanent <br />
         		<a id="pl.1.5"></a><var>1.5</var>school fund board; granting the board authority to employ a director to oversee, <br />
         		<a id="pl.1.6"></a><var>1.6</var>manage, and administer school trust lands;amending Minnesota Statutes 2010, <br />
         		<a id="pl.1.7"></a><var>1.7</var>sections 16A.06, subdivision 11; 16A.125, subdivision 5; 84.027, subdivision <br />
         		<a id="pl.1.8"></a><var>1.8</var>18; 84.085, subdivision 1; 92.12, subdivision 1; 92.121; 92.13; 93.2236; 94.342, <br />
         		<a id="pl.1.9"></a><var>1.9</var>subdivision 5; 127A.30; 477A.11, subdivisions 3, 4, by adding a subdivision; <br />
         		<a id="pl.1.10"></a><var>1.10</var>477A.12, subdivisions 2, 3; Minnesota Statutes 2011 Supplement, section <br />
         		<a id="pl.1.11"></a><var>1.11</var>477A.12, subdivision 1; proposing coding for new law in Minnesota Statutes, <br />
         		<a id="pl.1.12"></a><var>1.12</var>chapter 127A.<br />
         		<a id="pl.1.13"></a><var>1.13</var>April 24, 2012<br />
         		<a id="pl.1.14"></a><var>1.14</var>The Honorable Kurt Zellers<br />
         		<a id="pl.1.15"></a><var>1.15</var>Speaker of the House of Representatives<br />
         		<a id="pl.1.16"></a><var>1.16</var>The Honorable Michelle L. Fischbach<br />
         		<a id="pl.1.17"></a><var>1.17</var>President of the Senate<br />
         		<a id="pl.1.18"></a><var>1.18</var>We, the undersigned conferees for H. F. No. 2244 report that we have agreed upon <br />
         		<a id="pl.1.19"></a><var>1.19</var>the items in dispute and recommend as follows:<br />
         		<a id="pl.1.20"></a><var>1.20</var>That the Senate recede from its amendments and that H. F. No. 2244 be further <br />
         		<a id="pl.1.21"></a><var>1.21</var>amended as follows:<br />
         		<a id="pl.1.22"></a><var>1.22</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.23"></a><var>1.23</var>&nbsp;&nbsp;&nbsp;&nbsp;"Section 1. Minnesota Statutes 2010, section 15A.0815, subdivision 3, is amended to <br />
         		<a id="pl.1.24"></a><var>1.24</var>read:<br />
         		<a id="pl.1.25"></a><var>1.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Group II salary limits.</b> The salaries for positions in this subdivision may <br />
         		<a id="pl.1.26"></a><var>1.26</var>not exceed 85 percent of the salary of the governor:<br />
         		<a id="pl.1.27"></a><var>1.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Executive director of Gambling Control Board;<br />
         		<a id="pl.1.28"></a><var>1.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Commissioner, Iron Range Resources and Rehabilitation Board;<br />
         		<a id="pl.1.29"></a><var>1.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Commissioner, Bureau of Mediation Services;<br />
         		<a id="pl.1.30"></a><var>1.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Ombudsman for Mental Health and Developmental Disabilities;<br />
         		<a id="pl.1.31"></a><var>1.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Chair, Metropolitan Council; <br />
         		<a id="pl.1.32"></a><var>1.32</var>&nbsp;&nbsp;&nbsp;&nbsp;School trust lands director;<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Executive director of pari-mutuel racing; and<br />
         		<a id="pl.2.2"></a><var>2.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Commissioner, Public Utilities Commission.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.2.3"></a><var>2.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 16A.06, subdivision 11, is amended to read:<br />
         		<a id="pl.2.4"></a><var>2.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Permanent school fund reporting.</b> The commissioner shall annually <br />
         		<a id="pl.2.5"></a><var>2.5</var>report to the Legislative Permanent School Fund Advisory Committee Commission, and <br />
         		<a id="pl.2.6"></a><var>2.6</var>the legislature the amount of the permanent school fund transfer and information about <br />
         		<a id="pl.2.7"></a><var>2.7</var>the investment of the permanent school fund provided by the State Board of Investment. <br />
         		<a id="pl.2.8"></a><var>2.8</var>The State Board of Investment shall provide information about how they maximized the <br />
         		<a id="pl.2.9"></a><var>2.9</var>long-term economic return of the permanent school fund.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.10"></a><var>2.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 16A.125, subdivision 5, is amended to read:<br />
         		<a id="pl.2.11"></a><var>2.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Forest trust lands.</b> (a) The term "state forest trust fund lands" as used <br />
         		<a id="pl.2.12"></a><var>2.12</var>in this subdivision, means public land in trust under the Constitution set apart as "forest <br />
         		<a id="pl.2.13"></a><var>2.13</var>lands under the authority of the commissioner" of natural resources as defined by section <br />
         		
         <statute_ref><a id="pl.2.14"></a><var>2.14</var>89.001, subdivision 13
         </statute_ref>.<br />
         		<a id="pl.2.15"></a><var>2.15</var>(b) The commissioner of management and budget shall credit the revenue from the <br />
         		<a id="pl.2.16"></a><var>2.16</var>forest trust fund lands to the forest suspense account. The account must specify the trust <br />
         		<a id="pl.2.17"></a><var>2.17</var>funds interested in the lands and the respective receipts of the lands.<br />
         		<a id="pl.2.18"></a><var>2.18</var>(c) After a fiscal year, the commissioner of management and budget shall certify the <br />
         		<a id="pl.2.19"></a><var>2.19</var>total costs incurred for forestry during that year under appropriations for the protection, <br />
         		<a id="pl.2.20"></a><var>2.20</var>improvement, administration, and management of state forest trust fund lands and <br />
         		<a id="pl.2.21"></a><var>2.21</var>construction and improvement of forest roads to enhance the forest value of the lands. The <br />
         		<a id="pl.2.22"></a><var>2.22</var>certificate must specify the trust funds interested in the lands. After presentation to the <br />
         		<a id="pl.2.23"></a><var>2.23</var>Legislative Permanent School Fund Commission, the commissioner of natural resources <br />
         		<a id="pl.2.24"></a><var>2.24</var>shall supply the commissioner of management and budget with the information needed for <br />
         		<a id="pl.2.25"></a><var>2.25</var>the certificate. The certificate shall include an analysis that compares costs certified under <br />
         		<a id="pl.2.26"></a><var>2.26</var>this section with costs incurred on other public and private lands with similar land assets.<br />
         		<a id="pl.2.27"></a><var>2.27</var>(d) After a fiscal year, the commissioner shall distribute the receipts credited to the <br />
         		<a id="pl.2.28"></a><var>2.28</var>suspense account during that fiscal year as follows:<br />
         		<a id="pl.2.29"></a><var>2.29</var>(1) the amount of the certified costs incurred by the state for forest management, <br />
         		<a id="pl.2.30"></a><var>2.30</var>forest improvement, and road improvement during the fiscal year shall be transferred to <br />
         		<a id="pl.2.31"></a><var>2.31</var>the forest management investment account established under section 
         <statute_ref>89.039</statute_ref>;<br />
         		<a id="pl.2.32"></a><var>2.32</var>(2) the balance of the certified costs incurred by the state during the fiscal year <br />
         		<a id="pl.2.33"></a><var>2.33</var>shall be transferred to the general fund; and<br />
         		<a id="pl.3.1"></a><var>3.1</var>(3) the balance of the receipts shall then be returned prorated to the trust funds in <br />
         		<a id="pl.3.2"></a><var>3.2</var>proportion to their respective interests in the lands which produced the receipts.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.3.3"></a><var>3.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 84.027, subdivision 18, is amended to read:<br />
         		<a id="pl.3.4"></a><var>3.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Permanent school fund authority; reporting.</b> (a) The commissioner <br />
         		<a id="pl.3.5"></a><var>3.5</var>of natural resources has the authority and responsibility for the administration of school <br />
         		<a id="pl.3.6"></a><var>3.6</var>trust lands under sections 
         <statute_ref>92.121</statute_ref> and 
         <statute_ref>127A.31</statute_ref>. The commissioner shall biannually report <br />
         		<a id="pl.3.7"></a><var>3.7</var>to the Permanent School Fund Advisory Committee Legislative Permanent School Fund <br />
         		<a id="pl.3.8"></a><var>3.8</var>Commission and the legislature on the management of the school trust lands that shows <br />
         		<a id="pl.3.9"></a><var>3.9</var>how the commissioner has and will continue to achieve the following goals:<br />
         		<a id="pl.3.10"></a><var>3.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) manage the school trust lands efficiently and in a manner that reflects the <br />
         		<a id="pl.3.11"></a><var>3.11</var>undivided loyalty to the beneficiaries consistent with the commissioner's fiduciary duties;<br />
         		<a id="pl.3.12"></a><var>3.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the management expenditures of school trust lands and maximize the <br />
         		<a id="pl.3.13"></a><var>3.13</var>revenues deposited in the permanent school trust fund;<br />
         		<a id="pl.3.14"></a><var>3.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) manage the sale, exchange, and commercial leasing of school trust lands, <br />
         		<a id="pl.3.15"></a><var>3.15</var>requiring returns of not less than fair market value, to maximize the revenues deposited in <br />
         		<a id="pl.3.16"></a><var>3.16</var>the permanent school trust fund and retain the value from the long-term appreciation of <br />
         		<a id="pl.3.17"></a><var>3.17</var>the school trust lands; and<br />
         		<a id="pl.3.18"></a><var>3.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) manage the school trust lands to maximize the long-term economic return for the <br />
         		<a id="pl.3.19"></a><var>3.19</var>permanent school trust fund while maintaining sound natural resource conservation and <br />
         		<a id="pl.3.20"></a><var>3.20</var>management principles;<br />
         		<a id="pl.3.21"></a><var>3.21</var>(5) optimize school trust land revenues and maximize the value of the trust consistent <br />
         		<a id="pl.3.22"></a><var>3.22</var>with the balancing of short-term and long-term interests, so that long-term benefits are not <br />
         		<a id="pl.3.23"></a><var>3.23</var>lost in an effort to maximize short-term gains; and<br />
         		<a id="pl.3.24"></a><var>3.24</var>(6) maintain the integrity of the trust and prevent the misapplication of its lands <br />
         		<a id="pl.3.25"></a><var>3.25</var>and its revenues.<br />
         		<a id="pl.3.26"></a><var>3.26</var>(b) When the commissioner finds an irresolvable conflict between maximizing the <br />
         		<a id="pl.3.27"></a><var>3.27</var>long-term economic return and protecting natural resources and recreational values on <br />
         		<a id="pl.3.28"></a><var>3.28</var>school trust lands, the commissioner shall give precedence to the long-term economic <br />
         		<a id="pl.3.29"></a><var>3.29</var>return in managing school trust lands. By July 1, 2018, the permanent school fund <br />
         		<a id="pl.3.30"></a><var>3.30</var>shall be compensated for all school trust lands included under a designation or policy <br />
         		<a id="pl.3.31"></a><var>3.31</var>provision that prohibits long-term economic return. The commissioner shall submit <br />
         		<a id="pl.3.32"></a><var>3.32</var>recommendations to the appropriate legislative committees and divisions on methods of <br />
         		<a id="pl.3.33"></a><var>3.33</var>funding for the compensation required under this paragraph, including recommendations <br />
         		<a id="pl.3.34"></a><var>3.34</var>for appropriations from the general fund, nongeneral funds, and the state bond fund. Any <br />
         		<a id="pl.3.35"></a><var>3.35</var>uncompensated designation or policy provision restrictions on the long-term economic <br />
         		<a id="pl.4.1"></a><var>4.1</var>return on school trust lands remaining after July 1, 2018, shall be compiled and submitted <br />
         		<a id="pl.4.2"></a><var>4.2</var>to the Legislative Permanent School Fund Commission for review.<br />
         		<a id="pl.4.3"></a><var>4.3</var>(c) By December 31, 2013, the report required under paragraph (a) shall provide an <br />
         		<a id="pl.4.4"></a><var>4.4</var>inventory and identification of all school trust lands that are included under a designation <br />
         		<a id="pl.4.5"></a><var>4.5</var>or policy provision that prohibits long-term economic return. The report shall include a <br />
         		<a id="pl.4.6"></a><var>4.6</var>plan to compensate the permanent school fund through the purchase or exchange of the <br />
         		<a id="pl.4.7"></a><var>4.7</var>lands or a plan to manage the school trust land to generate long-term economic return to <br />
         		<a id="pl.4.8"></a><var>4.8</var>the permanent school fund. Subsequent reports under paragraph (a) shall include a status <br />
         		<a id="pl.4.9"></a><var>4.9</var>report of the commissioner's progress in maximizing the long-term economic return on <br />
         		<a id="pl.4.10"></a><var>4.10</var>lands identified in the 2013 report.<br />
         		<a id="pl.4.11"></a><var>4.11</var>(d) When future designations or policies by the commissioner prohibit the long-term <br />
         		<a id="pl.4.12"></a><var>4.12</var>economic return on school trust land, the conflict shall be resolved by compensating the <br />
         		<a id="pl.4.13"></a><var>4.13</var>permanent school fund through an exchange or purchase of the lands before designation or <br />
         		<a id="pl.4.14"></a><var>4.14</var>application of the policy.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.4.15"></a><var>4.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 92.45, is amended to read:<br />
         		<a id="pl.4.16"></a><var>4.16</var><b>92.45 STATE LAND ON MEANDERED LAKES WITHDRAWN FROM </b><br />
         		<a id="pl.4.17"></a><var>4.17</var><b>SALE.</b><br />
         		<a id="pl.4.18"></a><var>4.18</var>All state lands, excluding school trust lands, bordering on or adjacent to meandered <br />
         		<a id="pl.4.19"></a><var>4.19</var>lakes and other public waters and watercourses, with the live timber growing on them, <br />
         		<a id="pl.4.20"></a><var>4.20</var>are withdrawn from sale except as provided in this section. The commissioner of natural <br />
         		<a id="pl.4.21"></a><var>4.21</var>resources may sell the timber as otherwise provided by law for cutting and removal under <br />
         		<a id="pl.4.22"></a><var>4.22</var>conditions the commissioner prescribes. The conditions must be in accordance with <br />
         		<a id="pl.4.23"></a><var>4.23</var>approved, sustained-yield forestry practices. The commissioner must reserve the timber <br />
         		<a id="pl.4.24"></a><var>4.24</var>and impose other conditions the commissioner deems necessary to protect watersheds, <br />
         		<a id="pl.4.25"></a><var>4.25</var>wildlife habitat, shorelines, and scenic features. Within the area in Cook, Lake, and St. <br />
         		<a id="pl.4.26"></a><var>4.26</var>Louis Counties described in the Act of Congress approved July 10, 1930, (Statutes at <br />
         		<a id="pl.4.27"></a><var>4.27</var>Large, volume 46, page 1020), the timber on state lands is subject to restrictions like those <br />
         		<a id="pl.4.28"></a><var>4.28</var>now imposed by the act on federal lands.<br />
         		<a id="pl.4.29"></a><var>4.29</var>The following land is reserved for public travel: of all land bordering on or adjacent <br />
         		<a id="pl.4.30"></a><var>4.30</var>to meandered lakes and other public waters and watercourses and withdrawn from sale, a <br />
         		<a id="pl.4.31"></a><var>4.31</var>strip two rods wide, the ordinary high-water mark being its waterside boundary, and its <br />
         		<a id="pl.4.32"></a><var>4.32</var>landside boundary a line drawn parallel to the ordinary high-water mark and two rods <br />
         		<a id="pl.4.33"></a><var>4.33</var>distant landward from it. Wherever the conformation of the shore line or conditions <br />
         		<a id="pl.4.34"></a><var>4.34</var>require, the commissioner must reserve a wider strip.<br />
         		<a id="pl.5.1"></a><var>5.1</var>Except for sales under section 
         <statute_ref>282.018, subdivision 1</statute_ref>, when a state agency or any <br />
         		<a id="pl.5.2"></a><var>5.2</var>other unit of government requests the legislature to authorize the sale of state lands <br />
         		<a id="pl.5.3"></a><var>5.3</var>bordering on or adjacent to meandered lakes and other public waters and watercourses, the <br />
         		<a id="pl.5.4"></a><var>5.4</var>commissioner shall evaluate the lands and their public benefits and make recommendations <br />
         		<a id="pl.5.5"></a><var>5.5</var>on the proposed dispositions to the committees of the legislature with jurisdiction <br />
         		<a id="pl.5.6"></a><var>5.6</var>over natural resources. The commissioner shall include any recommendations of the <br />
         		<a id="pl.5.7"></a><var>5.7</var>commissioner for disposition of lands withdrawn from sale under this section over which <br />
         		<a id="pl.5.8"></a><var>5.8</var>the commissioner has jurisdiction. The commissioner's recommendations may include a <br />
         		<a id="pl.5.9"></a><var>5.9</var>public sale, sale to a private party, acquisition by the commissioner for public purposes, <br />
         		<a id="pl.5.10"></a><var>5.10</var>retention of a conservation easement for shoreland preservation by the commissioner <br />
         		<a id="pl.5.11"></a><var>5.11</var>under chapter 84C, or a cooperative management agreement with, or transfer to, another <br />
         		<a id="pl.5.12"></a><var>5.12</var>unit of government.<br />
         		<a id="pl.5.13"></a><var>5.13</var>The commissioner may sell state lands bordering on or adjacent to the Mississippi <br />
         		<a id="pl.5.14"></a><var>5.14</var>River or any lakes, waters, and watercourses in its bottom lands, desired or needed by the <br />
         		<a id="pl.5.15"></a><var>5.15</var>United States government for, or in connection with, any project heretofore authorized <br />
         		<a id="pl.5.16"></a><var>5.16</var>by Congress, to improve navigation in the Mississippi River at public sale according <br />
         		<a id="pl.5.17"></a><var>5.17</var>to law, as in other cases, upon application by an authorized United States official. The <br />
         		<a id="pl.5.18"></a><var>5.18</var>application must describe the land and include a map showing its location with reference <br />
         		<a id="pl.5.19"></a><var>5.19</var>to adjoining properties.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 94.342, subdivision 5, is amended to read:<br />
         		<a id="pl.5.21"></a><var>5.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Additional restrictions on school trust land.</b> School trust land may <br />
         		<a id="pl.5.22"></a><var>5.22</var>be exchanged with other Class A land only if the Permanent School Fund Advisory <br />
         		<a id="pl.5.23"></a><var>5.23</var>Committee school trust lands director is appointed as temporary trustee of the school trust <br />
         		<a id="pl.5.24"></a><var>5.24</var>land for purposes of the exchange. The committee Legislative Permanent School Fund <br />
         		<a id="pl.5.25"></a><var>5.25</var>Commission shall provide independent legal counsel to review the exchanges.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.5.26"></a><var>5.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 127A.30, is amended to read:<br />
         		<a id="pl.5.27"></a><var>5.27</var><b>127A.30 </b><b>LEGISLATIVE </b><b>PERMANENT SCHOOL FUND </b><b>ADVISORY </b><br />
         		<a id="pl.5.28"></a><var>5.28</var><b>COMMITTEE</b><b> COMMISSION</b><b>.</b><br />
         		<a id="pl.5.29"></a><var>5.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Commission established; </b><b>membership. </b> A state (a) The Legislative <br />
         		<a id="pl.5.30"></a><var>5.30</var>Permanent School Fund Advisory Committee Commission of 12 members is established <br />
         		<a id="pl.5.31"></a><var>5.31</var>to advise the Department of Natural Resources and the school trust lands director on the <br />
         		<a id="pl.5.32"></a><var>5.32</var>management of permanent school fund land, which is held in trust for the school districts <br />
         		<a id="pl.5.33"></a><var>5.33</var>of the state and to review legislation affecting permanent school fund land. The advisory <br />
         		<a id="pl.5.34"></a><var>5.34</var>committee must consist commission consists of the following persons or their designees: <br />
         		<a id="pl.6.1"></a><var>6.1</var>the chairs of the education committees of the legislature, the chairs of the legislative <br />
         		<a id="pl.6.2"></a><var>6.2</var>committees with jurisdiction over the K-12 education budget, the chairs of the legislative <br />
         		<a id="pl.6.3"></a><var>6.3</var>committees with jurisdiction over the environment and natural resources policy and budget, <br />
         		<a id="pl.6.4"></a><var>6.4</var>the chair of the senate Committee on Finance and the chair of the house of representatives <br />
         		<a id="pl.6.5"></a><var>6.5</var>Committee on Ways and Means, the commissioner of education, one superintendent <br />
         		<a id="pl.6.6"></a><var>6.6</var>from a nonmetropolitan district, one superintendent from a metropolitan area district, one <br />
         		<a id="pl.6.7"></a><var>6.7</var>person with an expertise in forestry, one person with an expertise in minerals and mining, <br />
         		<a id="pl.6.8"></a><var>6.8</var>one person with an expertise in real estate development, one person with an expertise <br />
         		<a id="pl.6.9"></a><var>6.9</var>in renewable energy, one person with an expertise in finance and land management, <br />
         		<a id="pl.6.10"></a><var>6.10</var>and one person with an expertise in natural resource conservation. The school district <br />
         		<a id="pl.6.11"></a><var>6.11</var>superintendents shall be appointed by the commissioner of education. The committee <br />
         		<a id="pl.6.12"></a><var>6.12</var>members with areas of expertise in forestry, minerals and mining, real estate development, <br />
         		<a id="pl.6.13"></a><var>6.13</var>renewable energy, finance and land management, and natural resource conservation shall <br />
         		<a id="pl.6.14"></a><var>6.14</var>be appointed by the commissioner of natural resources. Members of the legislature shall <br />
         		<a id="pl.6.15"></a><var>6.15</var>be given the opportunity to recommend candidates for vacancies on the committee to the <br />
         		<a id="pl.6.16"></a><var>6.16</var>commissioners of education and natural resources. The advisory committee must also <br />
         		<a id="pl.6.17"></a><var>6.17</var>include a nonvoting member appointed by the commissioner of natural resources. The <br />
         		<a id="pl.6.18"></a><var>6.18</var>commissioner of natural resources shall provide administrative support to the committee. <br />
         		<a id="pl.6.19"></a><var>6.19</var>The members of the committee shall serve without compensation. The members of the <br />
         		<a id="pl.6.20"></a><var>6.20</var>Permanent School Fund Advisory Committee shall elect their chair and are bound by the <br />
         		<a id="pl.6.21"></a><var>6.21</var>provisions of sections 
         <statute_ref>43A.38</statute_ref> and 
         <statute_ref>116P.09, subdivision 6</statute_ref>.<br />
         		<a id="pl.6.22"></a><var>6.22</var>(1) six members of the senate, including three majority party members appointed by <br />
         		<a id="pl.6.23"></a><var>6.23</var>the majority leader and three minority party members appointed by the minority leader; and<br />
         		<a id="pl.6.24"></a><var>6.24</var>(2) six members of the house of representatives, including three majority party <br />
         		<a id="pl.6.25"></a><var>6.25</var>members appointed by the speaker of the house and three minority party members <br />
         		<a id="pl.6.26"></a><var>6.26</var>appointed by the minority leader.<br />
         		<a id="pl.6.27"></a><var>6.27</var>(b) Appointed legislative members serve at the pleasure of the appointing authority <br />
         		<a id="pl.6.28"></a><var>6.28</var>and continue to serve until their successors are appointed.<br />
         		<a id="pl.6.29"></a><var>6.29</var>(c) The first meeting of the commission shall be convened by the chair of the <br />
         		<a id="pl.6.30"></a><var>6.30</var>Legislative Coordinating Commission. Members shall elect a chair, vice-chair, secretary, <br />
         		<a id="pl.6.31"></a><var>6.31</var>and other officers as determined by the commission. The chair may convene meetings as <br />
         		<a id="pl.6.32"></a><var>6.32</var>necessary to conduct the duties prescribed by this section.<br />
         		<a id="pl.6.33"></a><var>6.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Duties. </b> The advisory committee commission shall review the policies of <br />
         		<a id="pl.6.34"></a><var>6.34</var>the Department of Natural Resources and current statutes on management of school trust <br />
         		<a id="pl.6.35"></a><var>6.35</var>fund lands at least annually and shall recommend necessary changes in statutes, policy, <br />
         		<a id="pl.6.36"></a><var>6.36</var>and implementation in order to ensure provident utilization of the permanent school fund <br />
         		<a id="pl.7.1"></a><var>7.1</var>lands. By January 15 of each year, the advisory committee commission shall submit <br />
         		<a id="pl.7.2"></a><var>7.2</var>a report to the legislature with recommendations for the management of school trust <br />
         		<a id="pl.7.3"></a><var>7.3</var>lands to secure long-term economic return for the permanent school fund, consistent with <br />
         		<a id="pl.7.4"></a><var>7.4</var>sections 
         <statute_ref>92.121</statute_ref> and 
         <statute_ref>127A.31</statute_ref>. The committee's commission's annual report may include <br />
         		<a id="pl.7.5"></a><var>7.5</var>recommendations to:<br />
         		<a id="pl.7.6"></a><var>7.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) manage the school trust lands efficiently;<br />
         		<a id="pl.7.7"></a><var>7.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the management expenditures of school trust lands and maximize the <br />
         		<a id="pl.7.8"></a><var>7.8</var>revenues deposited in the permanent school trust fund;<br />
         		<a id="pl.7.9"></a><var>7.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) manage the sale, exchange, and commercial leasing of school trust lands to <br />
         		<a id="pl.7.10"></a><var>7.10</var>maximize the revenues deposited in the permanent school trust fund and retain the value <br />
         		<a id="pl.7.11"></a><var>7.11</var>from the long-term appreciation of the school trust lands; and<br />
         		<a id="pl.7.12"></a><var>7.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) manage the school trust lands to maximize the long-term economic return for <br />
         		<a id="pl.7.13"></a><var>7.13</var>the permanent school trust fund while maintaining sound natural resource conservation <br />
         		<a id="pl.7.14"></a><var>7.14</var>and management principles; and<br />
         		<a id="pl.7.15"></a><var>7.15</var>(5) manage the asset allocation of the permanent school fund.<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Duration.</b> Notwithstanding section 
         <statute_ref>15.059, subdivision 5</statute_ref>, the advisory <br />
         		<a id="pl.7.17"></a><var>7.17</var>committee is permanent and does not expire.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.7.18"></a><var>7.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>[127A.351] POLICY AND PURPOSE.</b><br />
         		<a id="pl.7.19"></a><var>7.19</var>(a) The purpose of sections 127A.351 to 127A.353 is to establish a school trust lands <br />
         		<a id="pl.7.20"></a><var>7.20</var>director position to recommend management policies for Minnesota's school trust lands in <br />
         		<a id="pl.7.21"></a><var>7.21</var>accordance with the provisions of the Minnesota Constitution, article XI, section 8.<br />
         		<a id="pl.7.22"></a><var>7.22</var>(b) As trustee, the state must manage the lands and revenues generated from the <br />
         		<a id="pl.7.23"></a><var>7.23</var>lands consistent with the best interests of the trust beneficiaries as defined in the Minnesota <br />
         		<a id="pl.7.24"></a><var>7.24</var>Constitution, article XI, section 8. When it is in the best interest of the school trust lands, <br />
         		<a id="pl.7.25"></a><var>7.25</var>ecological benefits shall be taken into consideration.<br />
         		<a id="pl.7.26"></a><var>7.26</var>(c) The trustee must be concerned with both income for the current beneficiaries <br />
         		<a id="pl.7.27"></a><var>7.27</var>and the preservation of trust assets for future beneficiaries, which requires a balancing of <br />
         		<a id="pl.7.28"></a><var>7.28</var>short-term and long-term interests so that long-term benefits are not lost in an effort to <br />
         		<a id="pl.7.29"></a><var>7.29</var>maximize short-term gains.<br />
         		<a id="pl.7.30"></a><var>7.30</var>(d) Sections 127A.351 to 127A.353 shall be liberally construed to enable the school <br />
         		<a id="pl.7.31"></a><var>7.31</var>trust lands director and the commissioner of natural resources to faithfully fulfill the <br />
         		<a id="pl.7.32"></a><var>7.32</var>state's obligations to the trust beneficiaries.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.7.33"></a><var>7.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. <b>[127A.352] POLICY RECOMMENDATIONS; DUTIES.</b><br />
         		<a id="pl.8.1"></a><var>8.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Recommendations.</b> The Legislative Permanent School Fund <br />
         		<a id="pl.8.2"></a><var>8.2</var>Commission shall recommend policies for the school trust lands director and the <br />
         		<a id="pl.8.3"></a><var>8.3</var>commissioner of natural resources that are consistent with the Minnesota Constitution, <br />
         		<a id="pl.8.4"></a><var>8.4</var>state law, and the goals established under section 84.027, subdivision 18.<br />
         		<a id="pl.8.5"></a><var>8.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Duties.</b> The commissioner of natural resources and the school trust lands <br />
         		<a id="pl.8.6"></a><var>8.6</var>director shall recommend to the governor and the Legislative Permanent School Fund <br />
         		<a id="pl.8.7"></a><var>8.7</var>Commission any necessary or desirable changes in statutes relating to the trust or their <br />
         		<a id="pl.8.8"></a><var>8.8</var>trust responsibilities consistent with the policies under section 127A.351.<br />
         		<a id="pl.8.9"></a><var>8.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Notice to commission and governor.</b> If the school trust lands director has <br />
         		<a id="pl.8.10"></a><var>8.10</var>an irreconcilable disagreement with the commissioner of natural resources pertaining to <br />
         		<a id="pl.8.11"></a><var>8.11</var>the fiduciary responsibilities consistent with the school trust lands, it is the duty of the <br />
         		<a id="pl.8.12"></a><var>8.12</var>director to report the subject of the disagreement to the Legislative Permanent School <br />
         		<a id="pl.8.13"></a><var>8.13</var>Fund Commission and the governor.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.8.14"></a><var>8.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[127A.353] SCHOOL TRUST LANDS DIRECTOR.</b><br />
         		<a id="pl.8.15"></a><var>8.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Appointment.</b> The school trust lands director shall be appointed <br />
         		<a id="pl.8.16"></a><var>8.16</var>by the governor. The commissioner of administration shall provide office space for <br />
         		<a id="pl.8.17"></a><var>8.17</var>the director. The commissioner shall provide human resources, payroll, accounting, <br />
         		<a id="pl.8.18"></a><var>8.18</var>procurement, and other similar administrative services to the school trust lands director. <br />
         		<a id="pl.8.19"></a><var>8.19</var>The director's appointment is subject to the advice and consent of the senate.<br />
         		<a id="pl.8.20"></a><var>8.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Qualifications.</b> The governor shall select the school trust lands director on <br />
         		<a id="pl.8.21"></a><var>8.21</var>the basis of outstanding professional qualifications and knowledge of finance, business <br />
         		<a id="pl.8.22"></a><var>8.22</var>practices, minerals, forest and real estate management, and the fiduciary responsibilities <br />
         		<a id="pl.8.23"></a><var>8.23</var>of a trustee to the beneficiaries of a trust. The school trust lands director serves in the <br />
         		<a id="pl.8.24"></a><var>8.24</var>unclassified service for a term of four years. The first term shall end on December 31, <br />
         		<a id="pl.8.25"></a><var>8.25</var>2016. The governor may remove the school trust lands director for cause. If a director <br />
         		<a id="pl.8.26"></a><var>8.26</var>resigns or is removed for cause, the governor shall appoint a director for the remainder of <br />
         		<a id="pl.8.27"></a><var>8.27</var>the term.<br />
         		<a id="pl.8.28"></a><var>8.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Compensation.</b> Compensation of the school trust lands director shall be <br />
         		<a id="pl.8.29"></a><var>8.29</var>established under chapter 15A.<br />
         		<a id="pl.8.30"></a><var>8.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Duties; powers.</b> (a) The school trust lands director shall:<br />
         		<a id="pl.8.31"></a><var>8.31</var>(1) take an oath of office before assuming any duties as the director;<br />
         		<a id="pl.8.32"></a><var>8.32</var>(2) evaluate the school trust land asset position;<br />
         		<a id="pl.8.33"></a><var>8.33</var>(3) determine the estimated current and potential market value of school trust lands;<br />
         		<a id="pl.9.1"></a><var>9.1</var>(4) advise the governor, Executive Council, commissioner of natural resources, <br />
         		<a id="pl.9.2"></a><var>9.2</var>and the Legislative Permanent School Fund Commission on the management of school <br />
         		<a id="pl.9.3"></a><var>9.3</var>trust lands, including:<br />
         		<a id="pl.9.4"></a><var>9.4</var>(i) Department of Natural Resources school trust land management plans;<br />
         		<a id="pl.9.5"></a><var>9.5</var>(ii) leases of school trust lands;<br />
         		<a id="pl.9.6"></a><var>9.6</var>(iii) royalty agreements on school trust lands;<br />
         		<a id="pl.9.7"></a><var>9.7</var>(iv) land sales and exchanges;<br />
         		<a id="pl.9.8"></a><var>9.8</var>(v) cost certification; and<br />
         		<a id="pl.9.9"></a><var>9.9</var>(vi) revenue generating options;<br />
         		<a id="pl.9.10"></a><var>9.10</var>(5) propose to the Legislative Permanent School Fund Commission legislative <br />
         		<a id="pl.9.11"></a><var>9.11</var>changes that will improve the asset allocation of the school trust lands;<br />
         		<a id="pl.9.12"></a><var>9.12</var>(6) develop a ten-year strategic plan and a 25-year framework for management of <br />
         		<a id="pl.9.13"></a><var>9.13</var>school trust lands, in conjunction with the commissioner of natural resources, that is <br />
         		<a id="pl.9.14"></a><var>9.14</var>updated every five years and implemented by the commissioner, with goals to:<br />
         		<a id="pl.9.15"></a><var>9.15</var>(i) retain core real estate assets;<br />
         		<a id="pl.9.16"></a><var>9.16</var>(ii) increase the value of the real estate assets and the cash flow from those assets;<br />
         		<a id="pl.9.17"></a><var>9.17</var>(iii) rebalance the portfolio in assets with high performance potential and the <br />
         		<a id="pl.9.18"></a><var>9.18</var>strategic disposal of selected assets;<br />
         		<a id="pl.9.19"></a><var>9.19</var>(iv) establish priorities for management actions; and<br />
         		<a id="pl.9.20"></a><var>9.20</var>(v) balance revenue enhancement and resource stewardship;<br />
         		<a id="pl.9.21"></a><var>9.21</var>(7) submit to the Legislative Permanent School Fund Commission for review an <br />
         		<a id="pl.9.22"></a><var>9.22</var>annual budget and management plan for the director; and<br />
         		<a id="pl.9.23"></a><var>9.23</var>(8) keep the beneficiaries, governor, legislature, and the public informed about the <br />
         		<a id="pl.9.24"></a><var>9.24</var>work of the director by reporting to the Legislative Permanent School Fund Commission <br />
         		<a id="pl.9.25"></a><var>9.25</var>in a public meeting at least once during each calendar quarter.<br />
         		<a id="pl.9.26"></a><var>9.26</var>(b) In carrying out the duties under paragraph (a), the school trust lands director <br />
         		<a id="pl.9.27"></a><var>9.27</var>shall have the authority to:<br />
         		<a id="pl.9.28"></a><var>9.28</var>(1) direct and control money appropriated to the director;<br />
         		<a id="pl.9.29"></a><var>9.29</var>(2) establish job descriptions and employ up to five employees in the unclassified <br />
         		<a id="pl.9.30"></a><var>9.30</var>service, within the limitations of money appropriated to the director;<br />
         		<a id="pl.9.31"></a><var>9.31</var>(3) enter into interdepartmental agreements with any other state agency; and<br />
         		<a id="pl.9.32"></a><var>9.32</var>(4) submit recommendations on strategies for school trust land leases, sales, or <br />
         		<a id="pl.9.33"></a><var>9.33</var>exchanges to the commissioner of natural resources and the Legislative Permanent School <br />
         		<a id="pl.9.34"></a><var>9.34</var>Fund Commission.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.10.1"></a><var>10.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>COSTS OF SCHOOL TRUST LANDS DIRECTOR AND LEGISLATIVE </b><br />
         		<a id="pl.10.2"></a><var>10.2</var><b>PERMANENT SCHOOL FUND COMMISSION.</b><br />
         		<a id="pl.10.3"></a><var>10.3</var>(a) The costs of the school trust lands director, including the costs of hiring staff, <br />
         		<a id="pl.10.4"></a><var>10.4</var>and the Legislative Permanent School Fund Commission for fiscal years 2014 and 2015 <br />
         		<a id="pl.10.5"></a><var>10.5</var>shall be from the state forest development account under Minnesota Statutes, section <br />
         		<a id="pl.10.6"></a><var>10.6</var>16A.125, and from the minerals management account under Minnesota Statutes, section <br />
         		<a id="pl.10.7"></a><var>10.7</var>93.2236, as appropriated by the legislature.<br />
         		<a id="pl.10.8"></a><var>10.8</var>(b) The school trust lands director and the Legislative Permanent School Fund <br />
         		<a id="pl.10.9"></a><var>10.9</var>Commission shall submit to the 2014 legislature a proposal to fund the operational costs <br />
         		<a id="pl.10.10"></a><var>10.10</var>of the Legislative Permanent School Fund Commission and school trust lands director <br />
         		<a id="pl.10.11"></a><var>10.11</var>and staff with a cost certification method using revenues generated by the permanent <br />
         		<a id="pl.10.12"></a><var>10.12</var>school fund lands.<br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.10.13"></a><var>10.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.10.14"></a><var>10.14</var>Sections 1 to 10 are effective July 1, 2013."<br />
         		<a id="pl.10.15"></a><var>10.15</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.10.16"></a><var>10.16</var>"A bill for an act<br />
            		
         </div><a id="pl.10.17"></a><var>10.17</var>relating to the permanent school fund; changing the Permanent School Fund <br />
         		<a id="pl.10.18"></a><var>10.18</var>Advisory Committee into a legislative commission; providing for a director <br />
         		<a id="pl.10.19"></a><var>10.19</var>for school trust lands;amending Minnesota Statutes 2010, sections 15A.0815, <br />
         		<a id="pl.10.20"></a><var>10.20</var>subdivision 3; 16A.06, subdivision 11; 16A.125, subdivision 5; 84.027, <br />
         		<a id="pl.10.21"></a><var>10.21</var>subdivision 18; 92.45; 94.342, subdivision 5; 127A.30; proposing coding for new <br />
         		<a id="pl.10.22"></a><var>10.22</var>law in Minnesota Statutes, chapter 127A."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.11.1"></a><var>11.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.2"></a><var>11.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.11.3"></a><var>11.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.4"></a><var>11.4</var><br />
                  		
               </td>
               <td>Tim O'Driscoll<br />
                  		
               </td>
               <td></td>
               <td>Carolyn McElfatrick<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.5"></a><var>11.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.6"></a><var>11.6</var><br />
                  		
               </td>
               <td>Denny McNamara<br />
                  		
               </td>
               <td></td>
               <td>Denise Dittrich<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.7"></a><var>11.7</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.11.8"></a><var>11.8</var><br />
                  		
               </td>
               <td>Steve Simon<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.11.9"></a><var>11.9</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.11.10"></a><var>11.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.11"></a><var>11.11</var><br />
                  		
               </td>
               <td>Benjamin A. Kruse<br />
                  		
               </td>
               <td></td>
               <td>Thomas M. Bakk<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.12"></a><var>11.12</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.13"></a><var>11.13</var><br />
                  		
               </td>
               <td>John J. Carlson<br />
                  		
               </td>
               <td></td>
               <td>Gen Olson<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.11.14"></a><var>11.14</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.11.15"></a><var>11.15</var><br />
                  		
               </td>
               <td>Dave A. Thompson<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>