Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
H.F. No. 2244 - School Trust Land Management (Conference Committee Report - CCRHF2244B)
 
Author: Senator Benjamin A. Kruse
 
Prepared By: Dan Mueller, Senate Fiscal Analyst (651/296-7680)
 
Date: April 25, 2012



 

H.F. No. 2244, as amended by the Senate, creates a School Trust Land Director and the Legislative Permanent School Fund Commission to advise the Governor, Executive Council, Legislature, and the Department of Natural Resources on school trust land management.  The commission consists of 12 members of the Legislature; six members of the Senate; and six members of the House.

Section 1 [Director salary] establishes the maximum salary for the School Trust Lands Director that is created in this bill.

Section 2 [Technical] changes the name of the entity receiving the permanent school fund report to the Legislative Permanent School Fund Commissioner (LPSFC) that is created in this bill to replace the Permanent School Fund Advisory Committee (PSFAC).

Section 3 [Forest trust lands certification] provides that forest protection costs will not be certified against the permanent school fund and that before any costs are certified they must be presented to the new LPSFC.  This section also requires the certification report to include a comparison with other public and private forest lands.

Section 4 [DNR requirements and reports] provides additional goals for management of school trust lands and directs the Department of Natural Resources (DNR) to choose maximizing the long-term revenue when the goals for school trust lands are in conflict.  If the DNR does not compensate the trust for designations or policies that prohibit the maximization of long-term revenue by July 1, 2018, the commissioner must report a list of the lands that must be compiled and submitted to the new commissioner.  By December 31, 2013, the report on school trust lands must include an inventory and identification of all school trust lands under a designation or policy provision that prohibits the long-term maximization of revenue to the permanent school fund.

Section 5 [Shoreland sales of school trust lands] exempts school trust lands from the general prohibition on sales of state lands bordering public waters without legislative approval.

Section 6 [Technical] changes the name of the entity who acts as a temporary trustee for school trust land exchanges to the LPSFC that is created in this bill to replace the PSFAC.

Section 7 [LPSFC]

Subdivision 1 [Commission created] creates the new Legislative Permanent School Fund Commission (LPSFC) in the legislative branch to replace the Permanent School Fund Advisory Committee (PSFAC).  The commissioner will consist of 12 members:

1.  three members of the Senate appointed by the majority leader, and three members of the Senate appointed by the minority leader; and

2.  three members of the House appointed by the speaker, and three members of the House appointed by the minority leader.

Subdivision 2 ][Duties] transfers the current duties of the school PSFAC to the new LPSFC and allows the new commission to recommend the asset allocation of the school trust.

Subdivision 3 [PSFAC duration] is repealed by amendment.

Section 8 [Policy and purpose] establishes the policy and purpose of establishing the School Trust Lands Director to recommend management policies for the management of school trust lands and specifics on the the trustee relationship with managing school trust lands.

Section 9 [Policy recommendations; duties]

Subdivision 1 [Recommendations] directs the LPSFC to recommend policies to the School Trust Lands Director and the DNR that are consistent with the Minnesota Constitution, state law, and goals established under state law.

Subdivision 2 [Duties] provides for the School Trust Lands Director and the DNR to recommend to the Governor and Legislature any necessary or desirable changes in law.

Subdivision 3 [Notice to Commission and Governor] provides that the School Trust Lands Director has the duty to report to the Governor and LPSFC on any irreconcilable disagreements on school trust land management with the DNR.

Section 10 [School Trust Lands Director]

Subdivision 1 [Appointment] provides that the School Trust Lands Director is appointed by the Governor.  The Commissioner of Administration shall provide space and administrative services to the director.  The director is subject to the advice and consent of the Senate.

Subdivision 2 [Qualifications] provides for the qualifications of the School Trust Lands Director and provides that the director's term is for four years.  The director's term will end at the midterm of the Governor.  The director may be removed for cause.

Subdivision 3 [Compensation] places compensation for the director under chapter 15A--public officers compensation.

Subdivision 4 [Duties and powers] provides for the duties of the new director, including:

  • evaluating the school trust land asset position;
  • advising the Governor, Executive Council, Commissioner of Natural Resources, Legislature, and the new LPSFC on managing school trust lands; and
  • developing a ten-year strategic plan and a 25-year framework for management of school trust lands that must be updated every five years.

The director may employ up to five employees in the unclassified service, within limits of appropriations, and enter into interdepartmental agreements.

Section 11 [Cost of the new director and the LPSFC] provides for the costs of the new director, including staff costs, and LPSFC to be from the state forest development account (suspense account) and the minerals management account.  The director and commission shall submit to the 2014 Legislature a plan for certifying their costs using revenue from school trust lands.

Section 12 [Effective date] makes sections 1 to 10 effective on July 1, 2013.

 

 

 

 

 

Revenue and Expenses

 Revenue Changes                             Fund                               FY2014               FY2015

Not Certifying Fire Protection Costs              General                      $(2,000,000)       $(2,000,000)

                                                         Perm School                 2,000,000            2,000,000

                                                      Total Revenue:            $                 0       $                 0

Expenses

The conference committee report creates a new School Trust Lands Director, and allows the Director to hire up to five employees.  There will also be expenses associated with the new Legislative Permanent School Fund Commission.  Actual costs will be based on the amount appropriated for these purposes by future Legislatures.

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 04/25/2012
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn