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Minnesota Legislature

Office of the Revisor of Statutes

SF 2220

as introduced - 91st Legislature (2019 - 2020) Posted on 03/13/2019 04:32pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state lands; modifying provisions of school trust lands director;
modifying prior appropriations; amending Minnesota Statutes 2018, section
127A.353, subdivisions 2, 4; Laws 2016, chapter 189, article 3, section 6, as
amended; Laws 2017, chapter 93, article 1, section 9.

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

Section 1.

Minnesota Statutes 2018, section 127A.353, subdivision 2, is amended to read:


Subd. 2.

Qualifications.

The governor shall select the school trust lands director on the
basis of outstanding professional qualifications and knowledge of finance, business practices,
minerals, forest and real estate management, and the fiduciary responsibilities of a trustee
to the beneficiaries of a trust. The school trust lands director serves in the unclassified service
for a term of four years. The first term deleted text beginshall enddeleted text endnew text begin endsnew text end on December 31, 2020. The governor
may remove the school trust lands director new text beginonly new text endfor deleted text begincausedeleted text endnew text begin neglect of fiduciary duty,
malfeasance, gross negligence, or incapacitation
new text end. If a directornew text begin is removed ornew text end resigns deleted text beginor is
removed for cause
deleted text end, the governor shall appoint a director for the remainder of the term.

Sec. 2.

Minnesota Statutes 2018, section 127A.353, subdivision 4, is amended to read:


Subd. 4.

Duties; powers.

(a) The school trust lands director shall:

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

new text begin (2) new text endtake an oath of office before assuming any duties as the directornew text begin as follows: "I
solemnly swear to carry out my duties as the school trust lands director with undivided
loyalty to the trust beneficiaries to the best of my abilities and according to law"
new text end;

deleted text begin (2)deleted text endnew text begin (3)new text end evaluate the school trust land asset position;

deleted text begin (3)deleted text endnew text begin (4)new text end determine the estimated current and potential market value of school trust lands;

deleted text begin (4)deleted text endnew text begin (5)new text end advisenew text begin and provide recommendations tonew text end the governor, deleted text beginExecutive Council,
commissioner of natural resources, and the Legislative Permanent School Fund Commission
on the management of school trust lands, including
deleted text endnew text begin on school trust land management policies
and other policies that may affect the goal under section 127A.31;
new text end

new text begin (6) advise and provide recommendations to the Executive Council and Land Exchange
Board on all matters regarding school trust lands presented to either body;
new text end

new text begin (7) advise and provide recommendations to the commissioner of natural resources on
managing school trust lands, including but not limited to advice and recommendations on
new text end:

(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) revenue generating options;

new text begin (8) serve as temporary trustee of school trust lands for school trust lands subject to
proposed or active eminent domain proceedings;
new text end

new text begin (9) serve as temporary trustee of school trust lands pursuant to section 94.342, subdivision
5;
new text end

deleted text begin (5) proposedeleted text endnew text begin (10) submitnew text end to the Legislative Permanent School Fund Commissionnew text begin for
review an annual budget and management plan for the director that includes proposed
new text end
legislative changes that will improve the asset allocation of the school trust lands;

deleted text begin (6)deleted text endnew text begin (11)new text end develop 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 and implemented by the commissioner, 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; and

(v) balance revenue enhancement and resource stewardship;new text begin and
new text end

deleted text begin (7) submit to the Legislative Permanent School Fund Commission for review an annual
budget and management plan for the director; and
deleted text end

deleted text begin (8)deleted text endnew text begin (12)new text end keep the beneficiaries, governor, legislature, and the public informed about the
work of the director by reporting to the Legislative Permanent School Fund Commission
in a public meeting at least once during each calendar quarter.

(b) In carrying out the duties under paragraph (a), the school trust lands director deleted text beginshall
have the authority to
deleted text endnew text begin maynew text end:

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

(2) establish job descriptions and employ deleted text beginup to five employees in the unclassified service,deleted text endnew text begin
staff
new text end 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 with the
advice of the Legislative Permanent School Fund Commission deleted text beginin orderdeleted text end to generate long-term
economic return to the permanent school fund;new text begin and
new text end

deleted text begin (6) serve as temporary trustee of school trust land for school trust lands subject to
proposed or active eminent domain proceedings; and
deleted text end

deleted text begin (7)deleted text endnew text begin (6)new text end 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.

Sec. 3.

Laws 2016, chapter 189, article 3, section 6, as amended by Laws 2017, chapter
93, article 1, section 12, is amended to read:


Sec. 6. ADMINISTRATION

$
250,000
$
-0-

$250,000 the first year is from the state forest
suspense account in the permanent school fund
for the school trust lands director to initiate
deleted text begin real estate development projects ondeleted text endnew text begin and
complete a 25-year framework for managing
new text end
school trust lands as deleted text begindetermined by the school
trust lands director
deleted text endnew text begin described in Minnesota
Statutes, section 127A.353, subdivision 4,
paragraph (a), clause (11)
new text end. This is a onetime
appropriation and is available until deleted text beginJune 30,
2019
deleted text endnew text begin expendednew text end.

Sec. 4.

Laws 2017, chapter 93, article 1, section 9, is amended to read:


Sec. 9. ADMINISTRATION

$
800,000
$
300,000

(a) $300,000 the first year and $300,000 the
second year are from the state forest suspense
account in the permanent school fund for the
school trust lands director. This appropriation
is to be used for securing long-term economic
return from the school trust lands consistent
with fiduciary responsibilities and sound
natural resources conservation and
management principles.

(b) $500,000 the first year is from the state
forest suspense account in the permanent
school fund for the school trust lands director
to initiate the deleted text beginprivate sale of surplus school
trust lands identified according to Minnesota
Statutes, section 92.82, paragraph (d)
deleted text endnew text begin
Boundary Waters Canoe Area Wilderness
private forest land alternative with the United
States Department of Agriculture Forest
Service and a nonprofit partner. The school
trust lands director may use these funds for
project costs
new text end, including but not limited to
new text begin environmental assessments, new text endvaluation
expenses, legal feesnew text begin, closing costsnew text end, and
transactional staff costs. This is a onetime
appropriation and is available until deleted text beginJune 30,
2019
deleted text endnew text begin expendednew text end.