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CHAPTER 116P. ENVIRONMENT AND NATURAL RESOURCES TRUST FUND

Table of Sections
SectionHeadnote
116P.01FINDINGS.
116P.02DEFINITIONS.
116P.03TRUST FUND NOT TO SUPPLANT EXISTING FUNDING; APPROPRIATIONS.
116P.04TRUST FUND ACCOUNT.
116P.05 LEGISLATIVE-CITIZEN COMMISSION ON MINNESOTA RESOURCES.
116P.06Repealed, 2006 c 243 s 22
116P.07INFORMATION GATHERING.
116P.08TRUST FUND EXPENDITURES.
116P.09ADMINISTRATION.
116P.10ROYALTIES, COPYRIGHTS, PATENTS.
116P.11AVAILABILITY OF FUNDS FOR DISBURSEMENT.
116P.12WATER SYSTEM IMPROVEMENT LOAN PROGRAM.
116P.13MINNESOTA FUTURE RESOURCES FUND.
116P.14FEDERAL LAND AND WATER CONSERVATION FUNDS.
116P.15LAND ACQUISITION RESTRICTIONS.
116P.16REAL PROPERTY INTEREST REPORT.
116P.01 FINDINGS.
The legislature finds that all Minnesotans share the responsibility to ensure wise stewardship
of the state's environment and natural resources for the benefit of current citizens and future
generations. Proper management of the state's environment and natural resources includes and
requires foresight, planning, and long-term activities that allow the state to preserve its high
quality environment and provides for wise use of its natural resources. The legislature also finds
that to undertake such activities properly, a long-term, consistent, and stable source of funding
must be provided.
History: 1988 c 690 art 1 s 5
116P.02 DEFINITIONS.
    Subdivision 1. Applicability. The definitions in this section apply to this chapter.
    Subd. 2.[Repealed, 2006 c 243 s 22]
    Subd. 3. Board. "Board" means the State Board of Investment.
    Subd. 4. Commission. "Commission" means the Legislative-Citizen Commission on
Minnesota Resources.
    Subd. 5. Natural resources. "Natural resources" includes the outdoor recreation system
under section 86A.04 and regional recreation open space systems as defined under section
473.351, subdivision 1.
    Subd. 6. Trust fund. "Trust fund" means the Minnesota environment and natural resources
trust fund established under Minnesota Constitution, article XI, section 14.
History: 1988 c 690 art 1 s 6; 1989 c 335 art 1 s 269; 2003 c 128 art 1 s 146; 2006 c 243 s 2
116P.03 TRUST FUND NOT TO SUPPLANT EXISTING FUNDING; APPROPRIATIONS.
(a) The trust fund may not be used as a substitute for traditional sources of funding
environmental and natural resources activities, but the trust fund shall supplement the traditional
sources, including those sources used to support the criteria in section 116P.08, subdivision 1.
The trust fund must be used primarily to support activities whose benefits become available
only over an extended period of time.
(b) The commission must determine the amount of the state budget spent from traditional
sources to fund environmental and natural resources activities before and after the trust fund
is established and include a comparison of the amount in the report under section 116P.09,
subdivision 7.
(c) For the fiscal year beginning July 1, 2007, and each year thereafter, the amount of the
environment and natural resources trust fund that is available for appropriation under the terms of
the Minnesota Constitution, article XI, section 14, shall be appropriated by law.
(d) The amount appropriated from the environment and natural resources trust fund may be
spent only for the public purpose of protection, conservation, preservation, and enhancement of
the state's air, water, land, fish, wildlife, and other natural resources. Recommendations made by
the commission under this chapter must be consistent with the Minnesota Constitution, article XI,
section 14; this chapter; and the strategic plan adopted under section 116P.08, subdivision 3, and
must demonstrate a direct benefit to the state's environment and natural resources.
History: 1988 c 690 art 1 s 7; 2006 c 243 s 3
116P.04 TRUST FUND ACCOUNT.
    Subdivision 1. Establishment of account and investment. A Minnesota environment
and natural resources trust fund, under article XI, section 14, of the Minnesota Constitution, is
established as an account in the state treasury. The commissioner of finance shall credit to the
trust fund the amounts authorized under this section and section 116P.10. The State Board of
Investment shall ensure that trust fund money is invested under section 11A.24. All money
earned by the trust fund must be credited to the trust fund. The principal of the trust fund and any
unexpended earnings must be invested and reinvested by the State Board of Investment.
    Subd. 2.[Repealed, 1990 c 610 art 1 s 59]
    Subd. 3. Revenue. Nothing in sections 116P.01 to 116P.12 limits the source of contributions
to the trust fund.
    Subd. 4. Gifts and donations. Gifts and donations, including land or interests in land, may
be made to the trust fund. Noncash gifts and donations must be disposed of for cash as soon as the
board prudently can maximize the value of the gift or donation. Gifts and donations of marketable
securities may be held or be disposed of for cash at the option of the board. The cash receipts of
gifts and donations of cash or capital assets and marketable securities disposed of for cash must
be credited immediately to the principal of the trust fund. The value of marketable securities at
the time the gift or donation is made must be credited to the principal of the trust fund and any
earnings from the marketable securities are earnings of the trust fund.
    Subd. 5. Audits required. The legislative auditor shall audit trust fund expenditures to
ensure that the money is spent for the purposes for which the money was appropriated.
History: 1988 c 690 art 1 s 8; 1990 c 610 art 1 s 44; 1991 c 343 s 1; 2006 c 243 s 4
116P.05 LEGISLATIVE-CITIZEN COMMISSION ON MINNESOTA RESOURCES.
    Subdivision 1. Membership. (a) A Legislative-Citizen Commission on Minnesota Resources
of 17 members is created in the legislative branch, consisting of the chairs of the house and senate
committees on environment and natural resources finance or designees appointed for the terms
of the chairs, four members of the senate appointed by the Subcommittee on Committees of the
Committee on Rules and Administration, and four members of the house appointed by the speaker.
At least two members from the senate and two members from the house must be from
the minority caucus. Members are entitled to reimbursement for per diem expenses plus travel
expenses incurred in the services of the commission.
Seven citizens are members of the commission, five appointed by the governor, one
appointed by the Senate Subcommittee on Committees of the Committee on Rules and
Administration, and one appointed by the speaker of the house. The citizen members are selected
and recommended to the appointing authorities according to subdivision 1a and must:
(1) have experience or expertise in the science, policy, or practice of the protection,
conservation, preservation, and enhancement of the state's air, water, land, fish, wildlife, and
other natural resources;
(2) have strong knowledge in the state's environment and natural resource issues around the
state; and
(3) have demonstrated ability to work in a collaborative environment.
(b) Members shall develop procedures to elect a chair that rotates between legislative and
citizen members. The chair shall preside and convene meetings as often as necessary to conduct
duties prescribed by this chapter.
(c) Appointed legislative members shall serve on the commission for two-year terms,
beginning in January of each odd-numbered year and continuing through the end of December
of the next even-numbered year. Citizen and legislative members continue to serve until their
successors are appointed.
(d) A citizen member may be removed by an appointing authority for cause. Vacancies
occurring on the commission shall not affect the authority of the remaining members of the
commission to carry out their duties, and vacancies shall be filled for the remainder of the term in
the same manner under paragraph (a).
(e) Citizen members shall be initially appointed according to the following schedule of terms:
(1) two members appointed by the governor for a term ending the first Monday in January
2010;
(2) one member appointed by the senate Subcommittee on Committees of the Committee on
Rules and Administration for a term ending the first Monday in January 2010 and one member
appointed by the speaker of the house for a term ending the first Monday in January 2010;
(3) two members appointed by the governor for a term ending the first Monday in January
2009; and
(4) one member appointed by the governor for a term ending the first Monday in January
2008.
(f) Citizen members are entitled to per diem and reimbursement for expenses incurred in the
services of the commission, as provided in section 15.059, subdivision 3.
(g) The governor's appointments are subject to the advice and consent of the senate.
    Subd. 1a. Citizen selection committee. The governor shall appoint a Trust Fund Citizen
Selection Committee of five members who come from different regions of the state and who have
knowledge and experience of state environment and natural resource issues.
The duties of the Trust Fund Citizen Selection Committee shall be to:
(1) identify citizen candidates to be members of the commission as part of the open
appointments process under section 15.0597;
(2) request and review citizen candidate applications to be members of the commission; and
(3) interview the citizen candidates and recommend an adequate pool of candidates to be
selected for commission membership by the governor, the senate, and the house of representatives.
Members are entitled to travel expenses incurred to fulfill their duties under this subdivision
as provided in section 15.059, subdivision 6.
    Subd. 2. Duties. (a) The commission shall recommend an annual legislative bill for
appropriations from the environment and natural resources trust fund and shall adopt a strategic
plan as provided in section 116P.08. Approval of the recommended legislative bill requires an
affirmative vote of at least 12 members of the commission.
(b) The commission shall recommend expenditures to the legislature from the state land and
water conservation account in the natural resources fund.
(c) It is a condition of acceptance of the appropriations made from the Minnesota environment
and natural resources trust fund, and oil overcharge money under section 4.071, subdivision 2,
that the agency or entity receiving the appropriation must submit a work program and semiannual
progress reports in the form determined by the Legislative-Citizen Commission on Minnesota
Resources, and comply with applicable reporting requirements under section 116P.16. None of the
money provided may be spent unless the commission has approved the pertinent work program.
(d) The peer review panel created under section 116P.08 must also review, comment, and
report to the commission on research proposals applying for an appropriation from the oil
overcharge money under section 4.071, subdivision 2.
(e) The commission may adopt operating procedures to fulfill its duties under this chapter.
(f) As part of the operating procedures, the commission shall:
(1) ensure that members' expectations are to participate in all meetings related to funding
decision recommendations;
(2) recommend adequate funding for increased citizen outreach and communications for
trust fund expenditure planning;
(3) allow administrative expenses as part of individual project expenditures based on need;
(4) provide for project outcome evaluation;
(5) keep the grant application, administration, and review process as simple as possible; and
(6) define and emphasize the leveraging of additional sources of money that project
proposers should consider when making trust fund proposals.
    Subd. 3. Sunset. This section expires June 30, 2016, unless extended by law.
History: 1988 c 690 art 1 s 9; 1989 c 335 art 1 s 269; 1990 c 594 art 1 s 56; 1991 c 254 art
2 s 39; 1991 c 343 s 2; 1993 c 4 s 15; 1994 c 580 s 1; 1997 c 202 art 2 s 36; 2003 c 128 art 1 s
147; 1Sp2005 c 1 art 2 s 135; 2006 c 243 s 5
116P.06 [Repealed, 2006 c 243 s 22]
116P.07 INFORMATION GATHERING.
The commission may convene public forums or employ other methods to gather information
for establishing priorities for funding.
History: 1988 c 690 art 1 s 11; 1991 c 254 art 2 s 41; 1991 c 343 s 4; 2002 c 225 s 2;
2006 c 243 s 6
116P.08 TRUST FUND EXPENDITURES.
    Subdivision 1. Expenditures. Money in the trust fund may be spent only for:
(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;
(2) research that contributes to increasing the effectiveness of protecting or managing the
state's environment or natural resources;
(3) collection and analysis of information that assists in developing the state's environmental
and natural resources policies;
(4) enhancement of public education, awareness, and understanding necessary for the
protection, conservation, restoration, and enhancement of air, land, water, forests, fish, wildlife,
and other natural resources;
(5) capital projects for the preservation and protection of unique natural resources;
(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
resources that otherwise may be substantially impaired or destroyed in any area of the state;
(7) administrative and investment expenses incurred by the State Board of Investment in
investing deposits to the trust fund; and
(8) administrative expenses subject to the limits in section 116P.09.
    Subd. 2. Exceptions. Money from the trust fund may not be spent for:
(1) purposes of environmental compensation and liability under chapter 115B and response
actions under chapter 115C;
(2) purposes of municipal water pollution control under the authority of chapters 115 and 116;
(3) costs associated with the decommissioning of nuclear power plants;
(4) hazardous waste disposal facilities;
(5) solid waste disposal facilities; or
(6) projects or purposes inconsistent with the strategic plan.
    Subd. 3. Strategic plan required. (a) The commission shall adopt a strategic plan for making
expenditures from the trust fund, including identifying the priority areas for funding for the next
six years. The strategic plan must be reviewed every two years. The strategic plan must have
clearly stated short- and long-term goals and strategies for trust fund expenditures, must provide
measurable outcomes for expenditures, and must determine areas of emphasis for funding.
(b) The commission shall consider the long-term strategic plans of agencies with
environment and natural resource programs and responsibilities and plans of conservation and
environmental organizations during the development and review of the strategic plan.
    Subd. 4. Legislative recommendations. (a) Funding may be provided only for those projects
that meet the categories established in subdivision 1.
(b) The commission must recommend an annual legislative bill to make appropriations
from the trust fund for the purposes provided in subdivision 1. The recommendations must be
submitted to the governor for inclusion in the biennial budget and supplemental budget submitted
to the legislature.
(c) The commission may recommend regional block grants for a portion of trust fund
expenditures to partner with existing regional organizations that have strong citizen involvement,
to address unique local needs and capacity, and to leverage all available funding sources for
projects.
(d) The commission may recommend the establishment of an annual emerging issues
account in its annual legislative bill for funding emerging issues, which come up unexpectedly,
but which still adhere to the commission's strategic plan, to be approved by the governor after
initiation and recommendation by the commission.
(e) Money in the trust fund may not be spent except under an appropriation by law.
    Subd. 5. Public meetings. (a) Meetings of the commission, committees or subcommittees
of the commission, technical advisory committees, and peer review panels must be open to the
public. The commission shall attempt to meet throughout various regions of the state during each
biennium. For purposes of this subdivision, a meeting occurs when a quorum is present and
action is taken regarding a matter within the jurisdiction of the commission, a committee or
subcommittee of the commission, a technical advisory committee, or a peer review panel.
(b) For legislative members of the commission, enforcement of this subdivision is governed
by section 3.055, subdivision 2. For nonlegislative members of the commission, enforcement of
this subdivision is governed by section 13D.06, subdivisions 1 and 2.
    Subd. 6. Peer review. (a) Research proposals must include a stated purpose directly
connected to the trust fund's constitutional mandate, this chapter, and the adopted strategic plan
under subdivision 3, a timeline, potential outcomes, and an explanation of the need for the
research. All research proposals must be reviewed by a peer review panel before receiving an
appropriation.
(b) In conducting research proposal reviews, the peer review panel shall:
(1) comment on the methodology proposed and whether it can be expected to yield
appropriate and useful information and data;
(2) comment on the need for the research and about similar existing information available,
if any; and
(3) report to the commission on clauses (1) and (2).
(c) The peer review panel also must review completed research proposals that have received
an appropriation and comment and report upon whether the project reached the intended goals.
    Subd. 7. Peer review panel membership. (a) The peer review panel must consist of at least
five members who are knowledgeable in general research methods in the areas of environment
and natural resources. Not more than two members of the panel may be employees of state
agencies in Minnesota.
(b) The commission shall select a chair every two years who shall be responsible for
convening meetings of the panel as often as is necessary to fulfill its duties as prescribed in this
section. Compensation of panel members is governed by section 15.059, subdivision 3.
History: 1988 c 690 art 1 s 12; 1989 c 335 art 1 s 178; 1991 c 254 art 2 s 42,43; 1991 c 343
s 5,6; 1994 c 580 s 2,3; 2001 c 7 s 31; 2004 c 284 art 2 s 14; 2006 c 243 s 7-10; 2007 c 30 s 3
116P.09 ADMINISTRATION.
    Subdivision 1. Administrative authority. The commission may appoint legal and other
personnel and consultants necessary to carry out functions and duties of the commission.
Permanent employees shall be in the unclassified service. In addition, the commission may
request staff assistance and data from any other agency of state government as needed for the
execution of the responsibilities of the commission and an agency must promptly furnish it.
    Subd. 2. Liaison officers. The commission shall request each department or agency head
of all state agencies with a direct interest and responsibility in any phase of environment and
natural resources to appoint, and the latter shall appoint for the agency, a liaison officer who shall
work closely with the commission and its staff.
    Subd. 3. Appraisal and evaluation. The commission shall obtain and appraise information
available through private organizations and groups, utilizing to the fullest extent possible studies,
data, and reports previously prepared or currently in progress by public agencies, private
organizations, groups, and others, concerning future trends in the protection, conservation,
preservation, and enhancement of the state's air, water, land, forests, fish, wildlife, native
vegetation, and other natural resources. Any data compiled by the commission shall be made
available to any standing or interim committee of the legislature upon the request of the chair of
the respective committee.
    Subd. 4. Personnel. Persons who are employed by a state agency to work on a project and
are paid by an appropriation from the trust fund are in the unclassified civil service, and their
continued employment is contingent upon the availability of money from the appropriation. When
the appropriation has been spent, their positions must be canceled and the approved complement
of the agency reduced accordingly. Part-time employment of persons for a project is authorized.
The use of classified employees is authorized when approved as part of the work program required
by section 116P.05, subdivision 2, paragraph (c).
    Subd. 5. Administrative expense. The prorated expenses related to commission
administration of the trust fund may not exceed an amount equal to four percent of the amount
available for appropriation of the trust fund for the biennium.
    Subd. 6. Conflict of interest. A commission member, a technical advisory committee
member, a peer review panelist, or an employee of the commission may not participate in or
vote on a decision of the commission, advisory committee, or peer review panel relating to an
organization in which the member, panelist, or employee has either a direct or indirect personal
financial interest. While serving on the commission, technical advisory committee, or peer review
panel, or being an employee of the commission, a person shall avoid any potential conflict of
interest.
    Subd. 7. Report required. The commission shall, by January 15 of each odd-numbered
year, submit a report to the governor, the chairs of the house appropriations and senate finance
committees, and the chairs of the house and senate committees on environment and natural
resources. Copies of the report must be available to the public. The report must include:
(1) a copy of the current strategic plan;
(2) a description of each project receiving money from the trust fund during the preceding
biennium;
(3) a summary of any research project completed in the preceding biennium;
(4) recommendations to implement successful projects and programs into a state agency's
standard operations;
(5) to the extent known by the commission, descriptions of the projects anticipated to be
supported by the trust fund during the next biennium;
(6) the source and amount of all revenues collected and distributed by the commission,
including all administrative and other expenses;
(7) a description of the assets and liabilities of the trust fund;
(8) any findings or recommendations that are deemed proper to assist the legislature in
formulating legislation;
(9) a list of all gifts and donations with a value over $1,000;
(10) a comparison of the amounts spent by the state for environment and natural resources
activities through the most recent fiscal year; and
(11) a copy of the most recent compliance audit.
    Subd. 8. Technical advisory committees. The commission shall make use of available
public and private expertise on environment and natural resource issues by appointing necessary
technical advisory committees to review funding proposals and evaluate project outcomes.
Compensation for technical advisory committee members is governed by section 15.059,
subdivision 6.
History: 1988 c 690 art 1 s 13; 1991 c 254 art 2 s 44-46; 1991 c 343 s 7-10; 1994 c 580 s 4;
2003 c 128 art 1 s 148-150; 2006 c 243 s 11-13
116P.10 ROYALTIES, COPYRIGHTS, PATENTS.
This section applies to projects supported by the trust fund and the oil overcharge money
referred to in section 4.071, subdivision 2, each of which is referred to in this section as a "fund."
The fund owns and shall take title to the percentage of a royalty, copyright, or patent resulting
from a project supported by the fund equal to the percentage of the project's total funding
provided by the fund. Cash receipts resulting from a royalty, copyright, or patent, or the sale of
the fund's rights to a royalty, copyright, or patent, must be credited immediately to the principal of
the fund. Receipts from Minnesota future resources fund projects must be credited to the trust
fund. Before a project is included in the budget plan, the commission may vote to relinquish
the ownership or rights to a royalty, copyright, or patent resulting from a project supported by
the fund to the project's proposer when the amount of the original grant or loan, plus interest,
has been repaid to the fund.
History: 1988 c 690 art 1 s 14; 1993 c 172 s 79; 2003 c 128 art 1 s 151
116P.11 AVAILABILITY OF FUNDS FOR DISBURSEMENT.
(a) The amount annually available from the trust fund for the legislative bill developed by
the commission is as defined in the Minnesota Constitution, article XI, section 14.
(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.
History: 1988 c 690 art 1 s 15; 1990 c 594 art 1 s 57; 1990 c 612 s 14; 1992 c 513 art 2 s 27;
1992 c 539 s 10; 1993 c 300 s 10; 1994 c 580 s 5; 1995 c 220 s 111; 2002 c 225 s 3; 2006 c 243 s 14
116P.12 WATER SYSTEM IMPROVEMENT LOAN PROGRAM.
    Subdivision 1. Loans authorized. (a) If the principal of the trust fund equals or exceeds
$200,000,000, the commission may vote to set aside up to five percent of the principal of the trust
fund for water system improvement loans. The purpose of water system improvement loans is
to offer below market rate interest loans to local units of government for the purposes of water
system improvements.
(b) The interest on a loan shall be calculated on the declining balance at a rate four
percentage points below the secondary market yield of one-year United States Treasury bills
calculated according to section 549.09, subdivision 1, paragraph (c).
(c) An eligible project must prove that existing federal or state loans or grants have not
been adequate.
(d) Payments on the principal and interest of loans under this section must be credited to
the trust fund.
(e) Repayment of loans made under this section must be completed within 20 years.
(f) The Minnesota Public Facilities Authority must report to the commission each year on
the loan program under this section.
    Subd. 2. Application and administration. (a) The commission must adopt a procedure for
the issuance of the water system improvement loans by the Public Facilities Authority.
(b) The commission also must ensure that the loans are administered according to its
fiduciary standards and requirements.
History: 1988 c 690 art 1 s 16
116P.13 MINNESOTA FUTURE RESOURCES FUND.
    Subdivision 1. Revenue sources. The money in the Minnesota future resources fund consists
of revenue credited under section 297F.10, subdivision 1, paragraph (b), clause (1).
    Subd. 2. Interest. The interest attributable to the investment of the Minnesota future
resources fund must be credited to the fund.
    Subd. 3. Revenue purposes. Revenue in the Minnesota future resources fund may be spent
for purposes of natural resources acceleration and outdoor recreation, including but not limited to
the development, maintenance, and operation of the state outdoor recreation system under chapter
86A and regional recreation open space systems as defined under section 473.351, subdivision 1.
History: 1988 c 690 art 1 s 17; 1989 c 335 art 1 s 179; 1997 c 106 art 2 s 4
116P.14 FEDERAL LAND AND WATER CONSERVATION FUNDS.
    Subdivision 1. Designated agency. The Department of Natural Resources is designated as
the state agency to apply for, accept, receive, and disburse federal reimbursement funds and
private funds, which are granted to the state of Minnesota from section 6 of the federal Land
and Water Conservation Fund Act.
    Subd. 2. State land and water conservation account; creation. A state land and water
conservation account is created in the natural resources fund. All of the money made available to
the state from funds granted under subdivision 1 shall be deposited in the state land and water
conservation account.
    Subd. 3. Local share. Fifty percent of all money made available to the state from funds
granted under subdivision 1 shall be distributed for projects to be acquired, developed, and
maintained by local units of government, providing that any project approved is consistent with a
statewide or a county or regional recreational plan and compatible with the statewide recreational
plan. All money received by the commissioner for local units of government is appropriated
annually to carry out the purposes for which the funds are received.
    Subd. 4. State share. Fifty percent of the money made available to the state from funds
granted under subdivision 1 shall be used for state land acquisition and development for the
state outdoor recreation system under chapter 86A and the administrative expenses necessary to
maintain eligibility for the federal Land and Water Conservation Fund.
History: 1Sp2001 c 2 s 140; 2003 c 128 art 1 s 152,153
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) 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:
"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-Citizen 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 transfer to
this state."
History: 1Sp2001 c 2 s 141; 2002 c 225 s 4; 2006 c 243 s 21
116P.16 REAL PROPERTY INTEREST REPORT.
By December 1 each year, a recipient of an appropriation from the trust fund, that is used for
the acquisition of an interest in real property, must submit annual reports on the status of the real
property to the Legislative-Citizen Commission on Minnesota Resources in a form determined
by the commission. The responsibility for reporting under this section may be transferred by the
recipient of the appropriation to another person who holds the interest in the real property. To
complete the transfer of reporting responsibility, the recipient of the appropriation must:
(1) inform the person to whom the responsibility is transferred of that person's reporting
responsibility;
(2) inform the person to whom the responsibility is transferred of the property restrictions
under section 116P.15; and
(3) provide written notice to the commission of the transfer of reporting responsibility,
including contact information for the person to whom the responsibility is transferred.
After the transfer, the person who holds the interest in the real property is responsible for reporting
requirements under this section.
History: 1Sp2005 c 1 art 2 s 136; 2006 c 243 s 21

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