HF 3292

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; managing school trust fund lands; improving the returns
for school trust fund lands; redefining the mission of the Permanent School Fund
Advisory Committee; providing a report; amending Minnesota Statutes 2006,
sections 16A.06, by adding a subdivision; 84.027, by adding a subdivision;
127A.30.

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

Section 1.

Minnesota Statutes 2006, section 16A.06, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Permanent school fund reporting. new text end

new text begin The commissioner shall biannually
report to the Permanent School Fund Advisory Committee and the legislature on the
management of the permanent school trust fund that shows how the commissioner
maximized the long-term economic return of the permanent school trust fund.
new text end

Sec. 2.

Minnesota Statutes 2006, section 84.027, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Permanent school fund authority; reporting. new text end

new text begin The commissioner of
natural resources has the authority and responsibility for the administration of school trust
lands under sections 92.121 and 127A.31. The commissioner shall biannually report to the
Permanent School Fund Advisory Committee and the legislature on the management of
the school trust lands that shows how the commissioner has and will continue to achieve
the following goals:
new text end

new text begin (1) manage the school trust lands efficiently;
new text end

new text begin (2) reduce the management expenditures of school trust lands and maximize the
revenues deposited in the permanent school trust fund;
new text end

new text begin (3) manage the sale, exchange, and commercial leasing of school trust lands to
maximize the revenues deposited in the permanent school trust fund and retain the value
from the long-term appreciation of the school trust lands; and
new text end

new text begin (4) manage the school trust lands to maximize the long-term economic return for the
permanent school trust fund while maintaining sound natural resource conservation and
management principles.
new text end

Sec. 3.

Minnesota Statutes 2006, section 127A.30, is amended to read:

127A.30 PERMANENT SCHOOL FUND ADVISORY COMMITTEE.

new text begin Subdivision 1. new text end

new text begin Membership. new text end

A state Permanent School Fund Advisory Committee
is established to advise the Department of Natural Resources on the management of
permanent school fund land, which is held in trust for the school districts of the state. The
advisory committee must consist of the following persons or their designees: the chairs
of the education committees of the legislature, new text begin the chairs of the legislative committees
with jurisdiction over the K-12 education budget, the chairs of the legislative committees
with jurisdiction over the environment and natural resources, new text end the deleted text begin chairs deleted text end new text begin chair new text end of the senate
Committee on Finance and new text begin the chair of the new text end house Committee on Ways and Means, the
commissioner of education, one superintendent from a nonmetropolitan district, deleted text begin and deleted text end one
superintendent from a metropolitan area district new text begin , one person with an expertise in forestry,
one person with an expertise in minerals and mining, one person with an expertise in
real estate development, one person with an expertise in renewable energy, one person
with an expertise in finance and land management, and one person with an expertise in
natural resource conservation new text end . The school district superintendents shall be appointed
by the commissioner of education. new text begin The committee members with areas of expertise in
forestry, minerals and mining, real estate development, renewable energy, finance and land
management, and natural resource conservation shall be appointed by the commissioner of
natural resources. Members of the legislature shall be given the opportunity to recommend
candidates for vacancies on the committee to the commissioners of education and natural
resources. The advisory committee must also include a nonvoting member appointed
by the commissioner of natural resources. The commissioner of natural resources shall
provide administrative support to the committee. The members of the committee shall
serve without compensation. The members of the Permanent School Fund Advisory
Committee shall elect their chairperson and are bound by the provisions of sections
43A.38 and 116P.09, subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

The advisory committee shall review the policies of the
Department of Natural Resources and current statutes on management of school trust fund
lands at least deleted text begin semiannually deleted text end new text begin annually new text end and shall recommend necessary changes in statutes,
policy, and implementation in order to ensure provident utilization of the permanent
school fund lands. new text begin By January 15 of each year, the advisory committee shall submit a
report to the legislature with recommendations for the management of school trust lands to
secure long-term economic return for the permanent school fund, consistent with sections
92.121 and 127A.31. The committee's annual report may include recommendations to:
new text end

new text begin (1) manage the school trust lands efficiently;
new text end

new text begin (2) reduce the management expenditures of school trust lands and maximize the
revenues deposited in the permanent school trust fund;
new text end

new text begin (3) manage the sale, exchange, and commercial leasing of school trust lands to
maximize the revenues deposited in the permanent school trust fund and retain the value
from the long-term appreciation of the school trust lands; and
new text end

new text begin (4) manage the school trust lands to maximize the long-term economic return for the
permanent school trust fund while maintaining sound natural resource conservation and
management principles.
new text end

new text begin Subd. 3. new text end

new text begin Duration. new text end

new text begin Notwithstanding section 15.059, subdivision 5, the advisory
committee is permanent and does not expire.
new text end