SF 3042

as introduced - 86th Legislature (2009 - 2010) Posted on 03/04/2010 03:14pm

A bill for an act
relating to education; creating an independent agency to oversee the management
of Minnesota's permanent school fund lands; amending Minnesota Statutes 2008,
sections 16A.125, subdivision 5; 84.027, subdivision 18; 84.085, subdivision 1;
92.12, subdivision 1; 92.121; 92.13; 93.2236; 94.342, subdivision 5; Minnesota
Statutes 2009 Supplement, section 16A.06, subdivision 11; proposing coding for
new law as Minnesota Statutes, chapter 128E.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 16A.06, subdivision 11,
is amended to read:

Subd. 11.

Permanent school fund reporting.

The commissioner shall annually
report to the new text begin Board of Trustees of the Permanent School Trust Lands Administration,
the new text end Permanent School Fund Advisory Committee new text begin , new text end and the legislature the amount of the
permanent school fund transfer and information about the investment of the permanent
school fund provided by the State Board of Investment. The State Board of Investment
shall provide information about how they maximized the long-term economic return of the
permanent school fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:

Subd. 5.

Forest trust lands.

(a) The term "state forest trust fund lands" as used
in this subdivision, means public land in trust under the Constitution set apart as "forest
lands under the authority of the commissioner" of natural resources as defined by section
89.001, subdivision 13.

(b) The commissioner of management and budget shall credit the revenue from the
forest trust fund lands to the forest suspense account. The account must specify the trust
funds interested in the lands and the respective receipts of the lands.

(c) After a fiscal year, the commissioner of management and budget shall certify the
total costs incurred for forestry during that year under appropriations for the protection,
improvement, administration, and management of state forest trust fund lands and
construction and improvement of forest roads to enhance the forest value of the lands.
The certificate must specify the trust funds interested in the lands. The commissioner of
natural resources new text begin and the director of the Permanent School Trust Lands Administration
new text end shall supply the commissioner of management and budget with the information needed
for the certificate.

(d) After a fiscal year, the commissioner shall new text begin apportion the receipts and new text end distribute
the receipts credited to the suspense account during that fiscal year as follows:

(1) the amount of the certified costs incurred by the deleted text begin state deleted text end new text begin Department of Natural
Resources new text end for forest management, forest improvement, and road improvement during the
fiscal year shall be transferred to the forest management investment account established
under section 89.039 new text begin , and the portion of the certified costs incurred by the Permanent
School Trust Lands Administration must be transferred to that agency's investment
account new text end ;

(2) the balance of the certified costs incurred by the deleted text begin state deleted text end new text begin Department of Natural
Resources new text end during the fiscal year shall be transferred to the general fund; and

(3) the balance of the receipts shall then be returned prorated to the trust funds in
proportion to their respective interests in the lands which produced the receipts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2008, section 84.027, subdivision 18, is amended to read:

Subd. 18.

Permanent school fund authority; reporting.

The deleted text begin commissioner of
natural resources deleted text end new text begin director of the Permanent School Trust Lands Administration new text end has the
authority and responsibility for the administration of school trust lands under sections
92.121 and 127A.31. The deleted text begin commissioner deleted text end new text begin director new text end 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 deleted text begin commissioner deleted text end new text begin director new text end has and will continue to achieve
the following goals:

(1) manage the school trust lands efficiently;

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

(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

(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 begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 4.

Minnesota Statutes 2008, section 84.085, subdivision 1, is amended to read:

Subdivision 1.

Authority.

(a) The commissioner of natural resources may accept for
and on behalf of the state any gift, bequest, devise, or grants of lands or interest in lands or
personal property of any kind or of money tendered to the state for any purpose pertaining
to the activities of the department or any of its divisions. Any money so received is hereby
appropriated and dedicated for the purpose for which it is granted. Lands and interests in
lands so received may be sold or exchanged as provided in chapter 94.

(b) When the commissioner of natural resources accepts lands or interests in land,
the commissioner may reimburse the donor for costs incurred to obtain an appraisal needed
for tax reporting purposes. If the state pays the donor for a portion of the value of the
lands or interests in lands that are donated, the reimbursement for appraisal costs shall not
exceed $1,500. If the donor receives no payment from the state for the lands or interests in
lands that are donated, the reimbursement for appraisal costs shall not exceed $5,000.

(c) The commissioner of natural resources, on behalf of the state, may accept and
use grants of money or property from the United States or other grantors for conservation
purposes not inconsistent with the laws of this state. Any money or property so received
is hereby appropriated and dedicated for the purposes for which it is granted, and shall
be expended or used solely for such purposes in accordance with the federal laws and
regulations pertaining thereto, subject to applicable state laws and rules as to manner
of expenditure or use providing that the commissioner may make subgrants of any
money received to other agencies, units of local government, private individuals, private
organizations, and private nonprofit corporations. Appropriate funds and accounts shall
be maintained by the commissioner of management and budget to secure compliance
with this section.

deleted text begin (d) The commissioner may accept for and on behalf of the permanent school fund a
donation of lands, interest in lands, or improvements on lands. A donation so received
shall become state property, be classified as school trust land as defined in section 92.025,
and be managed consistent with section 127A.31. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 5.

Minnesota Statutes 2008, section 92.12, subdivision 1, is amended to read:

Subdivision 1.

Appraisers.

new text begin The director of the Permanent School Trust Lands
Administration may have any school trust land appraised. new text end The commissioner may
have any deleted text begin school trust or deleted text end other state lands appraised. The appraisals must be made by
regularly appointed and qualified state appraisers. To be qualified, an appraiser must
hold a state appraiser license issued by the Department of Commerce. The appraisal
must be in conformity with the Uniform Standards of Professional Appraisal Practice of
the Appraisal Foundation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 6.

Minnesota Statutes 2008, section 92.121, is amended to read:

92.121 PERMANENT SCHOOL FUND LANDS.

The new text begin director of the Permanent School Trust Lands Administration and the new text end
commissioner of natural resources shall exchange permanent school fund land as defined
in the Minnesota Constitution, article XI, section 8, located in state parks, state recreation
areas, wildlife management areas, scientific and natural areas, or state waysides or on lands
managed by the commissioner as old growth stands, for other lands as allowed by the
Minnesota Constitution, article XI, section 10, and section 94.343, subdivision 1, that are
compatible with the goal of the permanent school fund lands in section 127A.31 when, as a
result of management practices applied to the permanent school fund lands and associated
resources, revenue generation has been diminished or is prohibited and no alternative has
been put into effect to compensate the permanent school fund for the income losses.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 7.

Minnesota Statutes 2008, section 92.13, is amended to read:

92.13 STATE LANDS, DATE OF SALE.

The commissioner shall hold public sales of deleted text begin school and other deleted text end state lands new text begin other than
school lands new text end when it is advantageous to the state and to intending buyers and settlers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 8.

Minnesota Statutes 2008, section 93.2236, is amended to read:

93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural
resources fund. Interest earned on money in the account accrues to the account. Money in
the account may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on June
30, the amount exceeding $3,000,000 must be distributed to the permanent school fund
and the permanent university fund. The amount distributed to each fund must be in the
same proportion as the total mineral lease revenue received in the previous biennium
from school trust lands and university lands.

(c) Subject to appropriation by the legislature, new text begin and approval by the director of the
Permanent School Trust Lands Administration, new text end money in the minerals management
account may be spent by the commissioner of natural resources for mineral resource
management and projects to enhance future mineral income and promote new mineral
resource opportunities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 9.

Minnesota Statutes 2008, section 94.342, subdivision 5, is amended to read:

Subd. 5.

Additional restrictions on school trust land.

School trust land may
be exchanged with other Class A land only if the deleted text begin Permanent School Fund Advisory
Committee is appointed as temporary deleted text end new text begin Board of Trustees of the Permanent School
Trust Lands Administration is serving as new text end trustee of the school trust land for purposes
of the exchange. The committee shall provide independent legal counsel to review the
exchanges.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 10.

new text begin [128E.01] CITATION; PERMANENT SCHOOL TRUST LANDS
ADMINISTRATION ACT.
new text end

new text begin This chapter may be cited as the Permanent School Trust Lands Administration Act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 11.

new text begin [128E.02] POLICY AND PURPOSE.
new text end

new text begin (a) The purpose of chapter 128E is to establish an administration and board to
manage Minnesota's school trust lands in accordance with the provisions of the Minnesota
Constitution, article XI, section 8.
new text end

new text begin (b) As trustee, the state must manage the lands and revenues generated from the
lands in the most prudent and profitable manner possible, and not for any purpose
inconsistent with the best interests of the trust beneficiaries as defined in the Minnesota
Constitution, article XI, section 8.
new text end

new text begin (c) The trustee must be concerned with both income for the current beneficiaries
and the preservation of trust assets for future beneficiaries, which requires a balancing of
short-term and long-term interests so that long-term benefits are not lost in an effort to
maximize short-term gains.
new text end

new text begin (d) The beneficiaries do not include other governmental institutions or agencies, the
public at large, or the general welfare of this state. This chapter shall be liberally construed
to enable the board of trustees, the director, and the administration to faithfully fulfill the
state's obligations to the trust beneficiaries.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 12.

new text begin [128E.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Administration. new text end

new text begin "Administration" means the Permanent School
Trust Lands Administration.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" or "board of trustees" means the Permanent School Trust
Lands Board of Trustees.
new text end

new text begin Subd. 3. new text end

new text begin Director. new text end

new text begin "Director" or "director of the Permanent School Trust Lands
Administration" means the chief executive officer of the Permanent School Trust Lands
Administration.
new text end

new text begin Subd. 4. new text end

new text begin School trust land. new text end

new text begin "School trust land" means land granted by the United
States for use of schools within each township, swampland granted to the state, and
internal improvement land that are reserved for permanent school fund purposes under
the Minnesota Constitution, article XI, section 8, and land exchanged, purchased, or
granted to the permanent school fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 13.

new text begin [128E.04] GOVERNANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Permanent School Trust Lands Administration
is established. The administration is an independent state agency and not a division of
any other department and is not subject to section 16B.37.
new text end

new text begin Subd. 2. new text end

new text begin Management. new text end

new text begin The Permanent School Trust Lands Administration shall
manage all school trust lands within the state. The administration is managed by a director
appointed by a majority vote of the board of trustees with the consent of the governor. The
board of trustees shall provide policies for the management of the administration and for
the management of trust lands and assets.
new text end

new text begin Subd. 3. new text end

new text begin Joint ventures. new text end

new text begin The Permanent School Trust Lands Administration, upon
approval of the board of trustees, may enter into joint ventures to develop trust lands
and minerals.
new text end

new text begin Subd. 4. new text end

new text begin Board of trustees membership; nomination list; qualifications; terms;
replacement; chair; quorum. new text end

new text begin (a) There is established the Permanent School Trust Lands
Board of Trustees.
new text end

new text begin (b) The board shall consist of seven members appointed on a nonpartisan basis by the
governor with the consent of the senate for nonconsecutive six-year terms. Of the initial
appointments to the board, the governor shall appoint one member to serve a six-year term,
one member to serve a five-year term, one member to serve a four-year term, one member
to serve a three-year term, one member to serve a two-year term, and one member to serve
a one-year term. All subsequent appointments shall be for a term of six years, except, if a
vacancy occurs, the governor shall appoint a replacement to fill the unexpired term.
new text end

new text begin (c) Any member of the board who has served less than six years upon the expiration
of that member's term is eligible for a consecutive reappointment.
new text end

new text begin (d) The governor shall select six of the seven appointees to the board from a
nomination list of at least two candidates for each position or vacancy submitted according
to subdivision 5. The governor may request an additional nomination list of at least two
candidates from the nominating committee if the initial list of candidates for a given
position is unacceptable. If the governor fails to select an appointee within 60 days
after receipt of the initial list or within 60 days after the receipt of an additional list, the
nominating committee shall make an interim appointment by majority vote. The interim
appointee shall serve until the matter is resolved by the committee and the governor
or until replaced pursuant to this chapter.
new text end

new text begin (e) The governor may appoint one member without requiring a nomination list. This
member serves at the pleasure of the governor.
new text end

new text begin (f) Each board candidate shall possess outstanding professional qualifications
pertinent to the purposes and activities of the trust. The board shall represent the following
areas of expertise: nonrenewable resource management or development, renewable
resource management or development, and real estate. Other qualifications which are
pertinent for membership to the board are expertise in any of the following areas: business,
investment banking, finance, trust administration, asset management, and the practice of
law in the areas of natural resources or real estate.
new text end

new text begin (g) The board of trustees shall select a chair from its membership. Before assuming
a position on the board, each member shall take an oath of office. Four members of the
board constitute a quorum for the transaction of business. The governor or five board
members may, for cause, remove a member of the board.
new text end

new text begin Subd. 5. new text end

new text begin Board of trustees nominating committee. new text end

new text begin (a) There is established an
11-member board of trustees nominating committee.
new text end

new text begin (b) The commissioner of education shall appoint five members to the nominating
committee from different geographical areas of the state.
new text end

new text begin (c) The governor shall appoint five members to the nominating committee as follows:
new text end

new text begin (1) one individual from a nomination list of at least two names of individuals
knowledgeable about school trust lands submitted by the University of Minnesota;
new text end

new text begin (2) one individual from a nomination list of at least two names submitted by the
timber industry;
new text end

new text begin (3) two individuals from a nomination list of at least four names submitted by the
mining industry; and
new text end

new text begin (4) one individual from a nomination list of at least two names submitted by the
commissioner of the Department of Natural Resources after consultation with statewide
wildlife and conservation organizations.
new text end

new text begin (d) The executive director of the Association of Minnesota Counties shall designate
one member, who must be an elected county commissioner, to serve as the eleventh
member of the nominating committee.
new text end

new text begin (e) Each member shall serve a four-year term, except that the commissioner of
education and the governor shall, at the time of appointment or reappointment, adjust the
length of terms to ensure that the terms of committee members are staggered so that
approximately one-half of the committee is appointed every two years.
new text end

new text begin (f) When a vacancy occurs in the membership for any reason, the replacement
shall be appointed for the unexpired term.
new text end

new text begin (g) The nominating committee shall select a chair from its membership by majority
vote and shall nominate at least two candidates for each position or vacancy which occurs
on the board of trustees except for the governor's appointee. The nominations shall be by
majority vote of the committee.
new text end

new text begin (h) Nominating committee members may receive per diem and expenses incurred in
the performance of their official duties as provided in section 15.0575.
new text end

new text begin Subd. 6. new text end

new text begin Information to board. new text end

new text begin Board members shall be given access to all
administration records and personnel consistent with law and as necessary to permit
the board to accomplish its responsibilities to ensure that the administration is in full
compliance with applicable policies and law.
new text end

new text begin Subd. 7. new text end

new text begin Rulemaking. new text end

new text begin The director may make rules as approved by the board
according to chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 14.

new text begin [128E.05] POLICIES.
new text end

new text begin Subdivision 1. new text end

new text begin Management. new text end

new text begin The board shall establish policies for the management
of the Permanent School Trust Lands Administration. The policies shall:
new text end

new text begin (1) be consistent with the Minnesota Constitution and state law;
new text end

new text begin (2) reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
new text end

new text begin (3) require the return of not less than fair market value for the use, sale, or exchange
of school trust assets;
new text end

new text begin (4) seek to optimize trust land revenues and increase the value of trust land holdings
consistent with the balancing of short-term and long-term interests, so that long-term
benefits are not lost in an effort to maximize short-term gains;
new text end

new text begin (5) maintain the integrity of the trust and prevent the misapplication of its lands
and its revenues; and
new text end

new text begin (6) have regard for and seek general fund appropriation compensation for the
general public's use of natural resources consistent with the duties of the administration
as trustee for the beneficiaries.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The board shall ensure that the administration is managed
according to law. The board shall establish due process procedures governing adjudicative
proceedings conducted by the administration. The board and the director shall recommend
to the governor and the legislature any necessary or desirable changes in statutes relating
to the trust or their trust responsibilities. The board shall develop policies for the long-term
benefit of the trust utilizing the broad discretion and power granted to it in this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Policies continued unless changed. new text end

new text begin Policies adopted by the Department
of Natural Resources prior to the effective date of this act regarding school trust lands
shall remain in effect until amended or repealed by the board. The administration shall be
the named party in substitution of the Department of Natural Resources or its predecessor
agencies with respect to all documents affecting trust lands from the effective date of
this act.
new text end

new text begin Subd. 4. new text end

new text begin Other lands. new text end

new text begin The board may authorize the director to manage lands or
interests in lands held by any other public or private party if:
new text end

new text begin (1) all management costs are compensated by the parties;
new text end

new text begin (2) there is a commensurate return to the beneficiaries; and
new text end

new text begin (3) the additional responsibilities do not detract from the administration's
responsibilities and its duty of undivided loyalty to the beneficiaries.
new text end

new text begin Subd. 5. new text end

new text begin Accept land and property. new text end

new text begin The board may accept for and on behalf of the
permanent school fund a donation of lands, interest in lands, or improvements on lands.
A donation so received shall become state property, be classified as school trust land as
defined in section 92.025, and be managed consistent with section 127A.31.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 15.

new text begin [128E.06] DIRECTOR.
new text end

new text begin Subdivision 1. new text end

new text begin Term. new text end

new text begin The board, with the consent of the governor, shall select the
director on the basis of outstanding professional qualifications pertinent to the purposes
and activities of the trust. The governor may withhold consent from a candidate agreed
upon by the board only by stating reasons in writing to the board. The director shall serve
a term of four years, or until a successor is selected and qualified. When a vacancy occurs
in the office of the director, the vacancy shall be filled by the board for the remainder of
the term.
new text end

new text begin Subd. 2. new text end

new text begin Compensation. new text end

new text begin The board shall establish the compensation of the director
and annually report the director's compensation to the legislature. The compensation and
performance of the director shall be examined each year as part of the board's budget
review process. The director's compensation is subject to section 3.855.
new text end

new text begin Subd. 3. new text end

new text begin Removal from office. new text end

new text begin The board may remove the director from office for
cause by a majority vote of the board. The governor may petition the board for removal of
the director for cause. The board shall hold a hearing on the governor's petition within
60 days after its receipt. If, after the hearing, the board finds by a preponderance of the
evidence cause for removal, it may choose to remove the director.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 16.

new text begin [128E.07] RESPONSIBILITIES OF THE DIRECTOR.
new text end

new text begin Subdivision 1. new text end

new text begin Duties and budget review. new text end

new text begin In carrying out the policies of the board
of trustees and in establishing procedures and rules, the director shall:
new text end

new text begin (1) take an oath of office before assuming any duties as the director;
new text end

new text begin (2) adopt procedures and rules necessary for the proper administration of matters
entrusted to the director by state law and board policy;
new text end

new text begin (3) submit to the board for its review and concurrence on any rules necessary for the
proper management of matters entrusted to the administration;
new text end

new text begin (4) faithfully manage the administration under the policies established by the board;
new text end

new text begin (5) submit to the board and for public inspection by October 1 of each year an
annual management budget and financial plan for operations of the administration and,
after approval by the board, submit the budget to the governor;
new text end

new text begin (6) direct and control the budget expenditures as finally authorized and appropriated;
new text end

new text begin (7) establish job descriptions and employ, within the limitation of the budget, staff
necessary to accomplish the purposes of the office;
new text end

new text begin (8) establish, in accordance with generally accepted principles of fund accounting, a
system to identify and account for the assets and vested interests of each beneficiary;
new text end

new text begin (9) maintain appropriate records of trust activities to enable auditors appointed by
appropriate state agencies or the board to conduct periodic audits of trust activities;
new text end

new text begin (10) provide that all leases, contracts, and agreements be submitted to legal counsel
for review of compliance with applicable law and fiduciary duties prior to execution and
utilize the services of the attorney general as provided in section 128E.08;
new text end

new text begin (12) keep the board, beneficiaries, governor, legislature, and the public informed
about the work of the director and administration by reporting to the board in a public
meeting at least once during each calendar quarter; and
new text end

new text begin (13) respond in writing within a reasonable time to a request by the board for
responses to questions on policies and practices affecting the management of the trust.
new text end

new text begin Subd. 2. new text end

new text begin Additional responsibilities. new text end

new text begin The director may:
new text end

new text begin (1) with the consent of the board, manage lands or interests in lands held by any
other public or private party pursuant to policies established by the board and may make
rules to implement these board policies;
new text end

new text begin (2) sue or be sued as the director of school and institutional trust lands;
new text end

new text begin (3) contract with other public agencies for personnel management services; and
new text end

new text begin (4) with the approval of the board, enter into joint ventures and other business
arrangements consistent with the purposes of the trust.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 17.

new text begin [128E.08] ATTORNEY GENERAL.
new text end

new text begin (a) The attorney general shall: represent the board, director, or administration in any
legal action relating to trust lands except as otherwise provided in paragraph (c); review
leases, contracts, and agreements submitted for review prior to execution; and undertake
suits for the collection of royalties, rental, and other damages in the name of the state.
new text end

new text begin (b) The attorney general may institute actions against any party to enforce this
chapter or to protect the interests of the trust beneficiaries.
new text end

new text begin (c) The administration may, with the consent of the attorney general, employ
in-house legal counsel to perform the duties of the attorney general under paragraphs (a)
and (b). In those instances where the interests of the trust beneficiaries conflict with those
of state officers or executive department agencies for which the attorney general acts as
legal advisor, the board may, with the consent of the attorney general, employ independent
counsel to represent and protect those interests.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 18.

new text begin [128E.09] LAND EXCHANGE.
new text end

new text begin The director of the Permanent School Trust Lands Administration may enter into
land exchange agreements with the commissioner of natural resources according to the
provisions of section 92.121.
new text end

Sec. 19.

new text begin [128E.10] FOREST AND MINERALS MANAGEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Control. new text end

new text begin All forest and minerals management on school trust lands
is vested with the board of the Permanent School Trust Lands Administration according
to the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin May contract. new text end

new text begin The administration may contract with any public or
private entity to make improvements to or upon trust lands and to carry out any of the
responsibilities of the office, so long as the contract requires strict adherence to trust
management principles and applicable law, and is subject to immediate suspension or
termination for cause.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 20. new text begin TRANSFER OF STAFF AND ASSETS AND BUDGET
RESPONSIBILITY.
new text end

new text begin All personnel, equipment, and other assets directly associated with the management
of the permanent school fund lands are transferred from the Department of Natural
Resources and any other state agency to the Permanent School Trust Lands Administration
effective July 1, 2013, according to Minnesota Statutes, section 15.039.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end