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HF 2383

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/04/2020 03:16pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/11/2019
1st Engrossment Posted on 03/12/2020

Current Version - 1st Engrossment

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A bill for an act
relating to state lands; modifying provisions of school trust lands director; amending
Minnesota Statutes 2018, section 127A.353, subdivisions 2, 4.

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 for cause. If a director resigns or is removed for
cause, 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) deleted text begintake an oath of office before assuming any duties as the directordeleted text endnew text begin act in a fiduciary
capacity for trust beneficiaries in accordance with the principles under section 127A.351
new text end;

(2) evaluate the school trust land asset position;

(3) determine the estimated current and potential market value of school trust lands;

(4) advisenew text begin and provide recommendations tonew text end the governordeleted text begin, Executive 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 (5) 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 (6) 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 (7) 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 (8) 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 (9) 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 (10)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 (11)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.