Senate File 1889, the second engrossment, creates a school trust land advisor and the Legislative-Citizen Permanent School Fund Commission to advise the Legislature and the Department of Natural Resources on school trust land management. The commission consists of 16 members, including four members of the Senate, four members of the House, four public members appointed by the Governor, and two public members appointed by the Senate, and two public members appointed by the House.
Section 1 [Advisor salary] establishes the maximum salary for the school trust lands advisor that is created in this bill.
Section 2 [Technical] changes the name of the entity receiving the permanent school fund report to the Legislative-Citizen Permanent School Fund Commissioner (LCPSFC) that is created in this bill to replace the Permmmanent 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 LCPSFC. This section also requires the certification report to include a comparison with other public and private forest lands.
Section 4 [DNR requirements and reports] directs the 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, 2016, the designations or policy provisions are removed. The first 2013 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 [Technical] changes the name of the entity who acts as a temporary trustee for school trust land exchanges to the LCPSFC that is created in this bill to replace the PSFAC.
Section 6 [LCPSFC]
Subdivision 1 [Commission created] creates the new Legislative-Citizen Permanent School Fund Commission (LCPSFC) in the legislative branch to replace the Permanent School Fund Advisory Committee (PSFAC). The commission will consist of 16 members:
two public members appoint by the Senate;
two public members appointed by the House;
four public members appointed by the Governor;
four members of Senate, including one from the minority party; and
four members of House, including one from the minority party.
Public members serve four-year staggered terms and must have practical experience or demonstrated knowledge in renewable or nonrenewable resource management, or development, real estate, business, finance, trust administration, asset management, or the practice of law in the areas of natural resources or real estate. The Governor’s appointments are subject to advice and consent of the Senate.
Subdivision 2 [Duties] transfers the current duties of the school PSFAC to the new LCPSFC and allows the new commission to recommend the asset allocation of the school trust.
Subdivision 3 [PSFAC duration] is repealed by amendment.
Subdivision 4 [Conflict of interest] prohibits members from advocating, voting, or other action that would be a conflict of interest; and defines a conflict of interest.
Subdivision 5 [Open meetings] provides that meetings of the new commission are subject to the legislative open meeting law.
Section 7 [Policies]
Subdivision 1 [Management of school trust lands] directs the LCPSFC to recommend policies to the school trust lands advisor and the Department of Natural Resources that:
are consistent with the Minnesota Constitution;
reflect undivided loyalty to the beneficiaries;
require fair market value for the school trust lands;
optimize school trust land revenue and values; and
maintain the integrity of the school trust.
Subdivision 2 [Duties] provides for the school trust lands advisor and the Department of Natural Resources to recommend to the Governor and Legislature any necessary or desirable changes in law.
Section 8 [School trust lands advisor]
Subdivision 1 [Appointment] provides that the school trust lands advisor is appointed by the governor. The commissioner of management and budget 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 advisor.
Subdivision 3 [Compensation] places compensation for the advisor under chapter 15A – public officers compensation.
Subdivision 4 [Duties] provides that the advisor shall advise the governor, legislature, and the new LCPSFC on managing school trust lands.
Subdivision 5 [Cost certification] provides that the costs of the school trust lands advisor and the LCPSFC shall be certified against the school trust lands.