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S.F. No. 2737 - School Trust Lands Administration Transfer
 
Author: Senator Justin D. Eichorn
 
Prepared By: Bjorn E. Arneson, Senate Analyst (651/296-3812)
 
Date: March 2, 2018



 

Section 1. Forest trust lands. Amends the definition of “state forest trust lands” to exclude school trust lands for the purpose of calculating credits to and disbursements from the forest suspense account. Eliminates the transfer from the forest suspense account to the general fund for the costs of the Legislative Permanent School Fund Commission and the school trust lands director. Makes the section effective July 1, 2019.

Section 2. School Trust Lands. Eliminates the statutory authority and responsibility of the commissioner of natural resources for the school trust lands. Strikes obsolete language related to a report due in 2013. Makes this section effective July 1, 2019.

Section 3. Authority. Eliminates the authority of the commissioner of natural resources to accept a donation of lands, interest in lands, or improvement on lands on behalf of the permanent school fund. Makes this section effective July 1, 2019.

Section 4. State Forest Lands. Amends the definition of “state forest lands” to exclude school trust lands. Makes this section effective July 1, 2019.

Section 5. Forest lands under the authority of the commissioner. Amends the definition of “forest lands under the authority of the commissioner [of natural resources]” to exclude school trust lands. Makes this section effective July 1, 2019.

Section 6. State public lands or state lands. Amends the definition of “state public lands” or “state lands” to exclude school trust lands. Makes this section effective July 1, 2019.

Section 7. Authority. Clarifies that the commissioner’s sales authority under this chapter applies only to state lands and does not include school trust lands. Makes this section effective July 1, 2019.

Section 8. Appraisers. Clarifies that the commissioner’s appraisal authority under this chapter applies only to state lands and does not include school trust lands. Makes this section effective July 1, 2019.

Section 9. Permanent School Fund Lands. Directs the commissioner of natural resources and the school trust lands director to exchange certain permanent school fund land when compatible with the goal of the permanent school fund lands and consistent with the school trust land director’s long-term plan and framework. Makes this section effective July 1, 2019.

Section 10. Public sale of state lands. Directs the commissioner to sell public lands, but not including school trust lands. Makes this section effective July 1, 2019.

Section 11. Establishment; membership. Adds the school trust lands director to the membership of the Mineral Coordinating Committee. Makes this section effective July 1, 2019.

Section 12. Staffing. Transfers the chair of the Mineral Coordinating Committee from the commissioner of natural resources to the commissioner of Iron Range resources and rehabilitation. Requires the commissioner of Iron Range resources and rehabilitation to provide staff and administrative services necessary for the committee’s activities. Makes this section effective July 1, 2019.

Section 13. Attorney general to institute condemnation. Clarifies that condemnation proceedings on school trust lands require the approval of the school trust lands director. Makes this section effective July 1, 2019.

Section 14. Action to quiet title to lands covered by mineral lease. Clarifies that actions to quiet title to school trust lands covered by mineral lease require the approval of the school trust lands director. Makes this section effective July 1, 2019.

Section 15. Disposition of payments. Requires that all payments for school trust lands be made to the school trust lands director and credited to the school trust management account in the special revenue fund.

Section 16. Minerals management account. Modifies the minerals management account balance that would trigger distributions to the permanent university fund and certain other taxing districts. Removes the permanent school fund from the list of funds and districts eligible for distributions from the account. Makes this section effective July 1, 2018.

Section 17. Proceeds from natural resources land. Clarifies that certain proceeds of the sale of natural resources land must be credited to the school trust management account. Makes this section effective July 1, 2019.

Section 18. Commission established; membership. Clarifies that the Legislative Permanent School Fund Commission must advise the school trust lands director. Requires that the Commission meet at least quarterly. Strikes other obsolete language. Makes this section effective July 1, 2018.

Section 19. Policy and purpose. Provides that the school trust lands director both recommends and implements management policies for Minnesota school trust lands. Makes this section effective July 1, 2019.

Section 20. Policy recommendations; duties. Clarifies that the Legislative Permanent School Fund Commission must make policy recommendations to the school trust lands director and that the director must make recommendations to the governor and the Commission as necessary. Strikes language to conform with the removal of authority from the commissioner of natural resources. Makes this section effective July 1, 2019.

Section 21. Duties; powers. Strikes language to conform with the removal of authority from the commissioner of natural resources. Adds to the school trust lands director’s statutory powers, including the power to offer school trust lands at public auction, direct and control real estate transactions involving school trust lands, accept donations on behalf of the permanent school fund, appraise any school trust land or mineral asset, and adopt rules. Makes this section effective July 1, 2019, except that the director’s power to offer school trust lands at auction is effective July 1, 2018.

Section 22. School trust management account. Creates the school trust management account in the special revenue fund. Requires that revenue generated from school trust lands, transfers into the account, and interest accruing from investment of the account be deposited in the account. Limits spending from the account for certain purposes, including mineral-resource management and projects, improvement and management of school trust lands forests and forest roads, real estate transaction costs for school trust lands, and costs of the Legislative Permanent School Fund Commission and the school trust lands director. Requires that any account balance exceeding $1.5 million be transferred quarterly to the permanent school fund. Requires that any balance exceeding an undefined amount at fiscal year-end be transferred to the permanent school fund. Requires the school trust lands director to certify costs for authorized purposes to the Legislative Permanent School Fund Commission.  Makes this section effective July 1, 2018.

Section 23. Transferring school trust land assets and authority. Directs that the responsibilities of the commissioner of natural resources and other state agencies for administering or managing school trust lands are transferred to the school trust lands director on July 1, 2020.

Section 24. Transition recommendations; report. Directs the commissioner of natural resources and the school trust lands director to submit a report no later than January 15, 2019, to the Legislature concerning recommendations for amendments to Minnesota Statutes and Rules and a transition plan and other administrative recommendations related to the transfer of authority over school trust lands to the school trust lands director.

Section 25. Repealer. Repeals a section related to the condemnation of school trust land, effective July 1, 2019.

 
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