Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 225-H.F.No. 3116 
                  An act relating to natural resources; modifying 
                  certain responsibilities of the advisory committee and 
                  the legislative commission on Minnesota resources 
                  regarding the environmental and natural resources 
                  trust fund; modifying availability of funds for 
                  disbursement; providing a penalty for failure to 
                  comply with restrictions on certain state-funded 
                  acquisitions of land; requiring recipients of certain 
                  state funding for acquisitions of interests in land to 
                  record a notice of funding agreement regarding the 
                  interests; amending Minnesota Statutes 2000, sections 
                  116P.06, subdivision 2; 116P.07; 116P.11; Minnesota 
                  Statutes 2001 Supplement, section 116P.15. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 116P.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] (a) The advisory committee shall:  
           (1) prepare and submit to the commission a draft strategic 
        plan to guide expenditures from the trust fund; 
           (2) review the reinvest in Minnesota program during 
        development of the draft strategic plan; 
           (3) gather public input from the resources congress during 
        development of the draft strategic plan; 
           (4) advise the commission on project proposals to receive 
        funding from the trust fund; and 
           (5) advise the commission on development of the budget plan.
           (b) The advisory committee may review all project proposals 
        for funding and may make recommendations to the commission on 
        whether the projects:  
           (1) meet the standards and funding categories set forth in 
        sections 116P.01 to 116P.12; 
           (2) duplicate existing federal, state, or local projects 
        being conducted within the state; and 
           (3) are consistent with the most recent strategic plan 
        adopted by the commission. 
           Sec. 2.  Minnesota Statutes 2000, section 116P.07, is 
        amended to read: 
           116P.07 [RESOURCES CONGRESS INFORMATION GATHERING.] 
           The commission must may convene a resources congress at 
        least once every biennium and shall develop procedures for the 
        congress public forums to gather information for establishing 
        priorities for funding.  The congress must be open to all 
        interested individuals.  The purpose of the congress is to 
        collect public input necessary to allow the commission, with the 
        advice of the advisory committee, to develop a strategic plan to 
        guide expenditures from the trust fund.  The congress also may 
        be convened to receive and review reports on trust fund projects.
        The congress shall also review the reinvest in Minnesota program.
           Sec. 3.  Minnesota Statutes 2000, section 116P.11, is 
        amended to read: 
           116P.11 [AVAILABILITY OF FUNDS FOR DISBURSEMENT.] 
           (a) The amount biennially available from the trust fund for 
        the budget plan developed by the commission consists of the 
        earnings generated from the trust fund is as defined in the 
        Minnesota Constitution, article XI, section 14.  Earnings 
        generated from the trust fund shall equal the amount of interest 
        on debt securities and dividends on equity securities.  Gains 
        and losses arising from the sale of securities shall be 
        apportioned as follows:  
           (1) if the sale of securities results in a net gain during 
        a fiscal year, the gain shall be apportioned in equal 
        installments over the next ten fiscal years to offset net losses 
        in those years.  If any portion of an installment is not needed 
        to recover subsequent losses identified in paragraph (b), it 
        shall be added to the principal of the fund; and 
           (2) if the sale of securities results in a net loss during 
        a fiscal year, the net loss shall be recovered from the gains in 
        paragraph (a) apportioned to that fiscal year.  If such gains 
        are insufficient, any remaining net loss shall be recovered from 
        interest and dividend income in equal installments over the 
        following ten fiscal years.  
           (b) For funding projects until fiscal year 1997, the 
        following additional amounts are available from the trust fund 
        for the budget plans developed by the commission:  
           (1) for the 1991-1993 biennium, up to 25 percent of the 
        revenue deposited in the trust fund in fiscal years 1990 and 
        1991; 
           (2) for the 1993-1995 biennium, up to 20 percent of the 
        revenue deposited in the trust fund in fiscal year 1992 and up 
        to 15 percent of the revenue deposited in the fund in fiscal 
        year 1993; 
           (3) for the 1993-1995 biennium, up to 25 percent of the 
        revenue deposited in the trust fund in fiscal years 1994 and 
        1995, to be expended only for capital investments in parks and 
        trails; and 
           (4) for the 1995-1997 biennium, up to 25 percent of the 
        revenue deposited in the fund in fiscal year 1996, to be 
        expended only for capital investments in parks and trails. 
           (c) (b) Any appropriated funds not encumbered in the 
        biennium in which they are appropriated cancel and must be 
        credited to the principal of the trust fund. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        116P.15, is amended to read: 
           116P.15 [LAND ACQUISITION RESTRICTIONS.] 
           Subdivision 1.  [SCOPE.] A recipient of an appropriation 
        from the trust fund or the Minnesota future resources fund who 
        acquires an interest in real property with the appropriation 
        must comply with this section.  If the recipient fails to comply 
        with the terms of this section, ownership of the interest in 
        real property transfers to the state.  For the purposes of this 
        section, "interest in real property" includes, but is not 
        limited to, an easement or fee title to property. 
           Subd. 2.  [RESTRICTIONS; MODIFICATION PROCEDURE.] (a) An 
        interest in real property acquired with an appropriation from 
        the trust fund or the Minnesota future resources fund must be 
        used in perpetuity or for the specific term of an easement 
        interest for the purpose for which the appropriation was made. 
           (b) A recipient of funding who acquires an interest in real 
        property subject to this section may not alter the intended use 
        of the interest in real property or convey any interest in the 
        real property acquired with the appropriation without the prior 
        review and approval of the commission.  The commission shall 
        establish procedures to review requests from recipients to alter 
        the use of or convey an interest in real property.  These 
        procedures shall allow for the replacement of the interest in 
        real property with another interest in real property meeting the 
        following criteria: 
           (1) the interest is at least equal in fair market value, as 
        certified by the commissioner of natural resources, to the 
        interest being replaced; and 
           (2) the interest is in a reasonably equivalent location, 
        and has a reasonably equivalent usefulness compared to the 
        interest being replaced. 
           (c) An interest in real property acquired with an 
        appropriation from the trust fund or the Minnesota future 
        resources fund to be held by an entity other than this state 
        shall include the following restrictive covenant on the 
        conveyance instrument used to acquire the real property 
        interests: A recipient of funding who acquires an interest in 
        real property under paragraph (a) must separately record a 
        notice of funding restrictions in the appropriate local 
        government office where the conveyance of the interest in real 
        property is filed.  The notice of funding agreement must contain:
           (1) a legal description of the interest in real property 
        covered by the funding agreement; 
           (2) a reference to the underlying funding agreement; 
           (3) a reference to this section; and 
           (4) the following statement: 
           "The above described This interest in real property shall 
        be administered in accordance with the terms, conditions, and 
        purposes of the grant agreement or work program controlling the 
        acquisition of the property.  The interest in real property, or 
        any portion of the interest in real property, shall not be sold, 
        transferred, pledged, or otherwise disposed of or further 
        encumbered without obtaining the prior written approval of the 
        legislative commission on Minnesota resources or its successor.  
        If the holder of the interest in real property fails to comply 
        with the terms and conditions of the grant agreement or work 
        program, ownership of the interest in real property shall revert 
        transfer to this state." 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective the day following final 
        enactment. 
           Presented to the governor March 6, 2002 
           Signed by the governor March 7, 2002, 2:24 p.m.