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S.F. No. 1988 - Permanent school fund compensation authority clarification
Author: Senator Carrie Ruud
Prepared By: Ben Stanley, Senate Counsel (651/296-4793)
Date: March 18, 2019


Section 1 [Clarifying and Technical Changes] Makes various clarifying and technical changes.

Section 2 [Compensation to Permanent School Fund] Clarifies that when Department of Natural Resources (DNR) management practices, policies, or designations prevent or diminish revenue generation on school trust land:

  • If revenue generation is diminished, the permanent school fund must be compensated.
  • If revenue generation is prevented, the permanent school fund must be compensated and the practices, policies, or designations cannot go into effect until the permanent school fund has been compensated.

Permissible forms of compensation to the fund include exchange for other lands, leasing of lands with rental payments as compensation, or condemnation of lands with payment of the amount of the award and judgment.

Section 3 [Conforming Change] A conforming change to the statutes to clarify that DNR has the authority to lease land in order to compensate the permanent school fund.

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