1.1 	A bill for an act
1.2 	relating to public lands; authorizing alternative
1.3 	investments of county environmental trust fund
1.4 	deposits; amending Laws 1998, chapter 389, article 16,
1.5 	section 31, subdivision 4, as amended.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Laws 1998, chapter 389, article 16, section 31,
1.8 	subdivision 4, as amended by Laws 1999, chapter 180, section 3,
1.9 	and Laws 2001, chapter 164, section 5, is amended to read:
1.10 		Subd. 4.County environmental trust fund.
 1.11 	Notwithstanding the provisions of Minnesota Statutes, chapter
1.12 	282, and any other law relating to the apportionment of proceeds
1.13 	from the sale of tax-forfeited land, and except as otherwise
1.14 	provided in this section, a county board must deposit the money
1.15 	received from the sale of land under subdivision 3 into an
1.16 	environmental trust fund established by the county under this
1.17 	subdivision. The county board may:  (1) deposit part or all of
1.18 	the environmental trust fund money as provided in Minnesota
1.19 	Statutes, chapter 118A; or (2) enter into an agreement with the
1.20 	State Board of Investment to invest all or part of the money in
1.21 	investments under Minnesota Statutes, section 11A.24,
1.22 	subdivisions 1 to 5, on behalf of the county.The following may
1.23 	be withheld by a county board and are not required to be
1.24 	deposited into an environmental trust fund:  the costs of
1.25 	appraisal, abstracts, and surveys; money received from a sale
2.1 	which is attributable to land owned by a county in fee; amounts
2.2 	paid to lessees for improvements; amounts paid to acquire land
2.3 	which is included in a county plan for exchange and is conveyed
2.4 	to the state in the exchange, including the purchase price,
2.5 	appraisal, abstract, survey, and closing costs; and the costs of
2.6 	sale to lessees or other parties, including the costs of
2.7 	advertising, realtors, and closing services.  If the proceeds
2.8 	from the sale of tax-forfeited land in a county is are $250,000
2.9 	or more, the principal from the sale of the land may not be
2.10 	expended,the amount the county may spend from the fund each
2.11 	calendar year may not exceed 5-1/2 percent of the market value
2.12 	of the fund on January 1 of the preceding calendar year,and the
2.13 	county board may spend interest earned on the principal money
2.14 	from the fund only for purposes related to the improvement of
2.15 	natural resources.  To the extent money received from the sale
2.16 	is attributable to tax-forfeited land from another county, the
2.17 	money must be deposited in an environmental trust fund
2.18 	established under this section by that county board.
2.19 	
EFFECTIVE DATE. This section is effective the day
2.20 	following final enactment.