Duties of school trust lands director modified, director's required report to the Legislative Permanent School Fund Commission modified, and report required.

A bill for an act

relating to education; modifying the duties of the school trust lands director;

modifying the director's required report to the Legislative Permanent School Fund

Commission; requiring a report; amending Minnesota Statutes 2024, section

127A.353, subdivision 4, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 127A.353, subdivision 4, is amended to read:

Subd. 4.

Duties; powers.

(a) The school trust lands director shall:

(1) act in a fiduciary capacity for trust beneficiaries in accordance with the principles

under section
127A.351
;

(2) evaluate the school trust land asset position;

(3) determine the estimated current and potential market value of school trust lands;

(4) advise and provide recommendations to the governor on school trust land management

policies and other policies that may affect the goal of the permanent school fund under

section
127A.31
;

(5) advise and provide recommendations to the Executive Council and Land Exchange

Board on all matters regarding school trust lands presented to either body;

(6) advise and provide recommendations to the commissioner of natural resources on

managing school trust lands, including but not limited to advice and recommendations on:

(i) Department of Natural Resources school trust land management plans;

(ii) leases of school trust lands;

(iii) royalty agreements on school trust lands;

(iv) land sales and exchanges;

(v) cost certification; and

(vi)
deleted text begin
revenue generating
deleted text end
new text begin
revenue-generating
new text end
options;

(7) serve as temporary trustee of school trust lands for school trust lands subject to

proposed or active eminent domain proceedings;

(8) serve as temporary trustee of school trust lands pursuant to section
94.342, subdivision

5;

deleted text begin

(9) submit to the Legislative Permanent School Fund Commission for review an annual

budget and management plan for the director that includes proposed legislative changes

that will improve the asset allocation of the school trust lands;

deleted text end

deleted text begin

(10)
deleted text end
new text begin
(9)
new text end
develop and implement a ten-year strategic plan and a 25-year framework for

management of school trust lands, in conjunction with the commissioner of natural resources,

that is updated every five years, with goals to:

(i) retain core real estate assets;

(ii) increase the value of the real estate assets and the cash flow from those assets;

(iii) rebalance the portfolio in assets with high performance potential and the strategic

disposal of selected assets;

(iv) establish priorities for management actions;

(v) balance revenue enhancement and resource stewardship; and

(vi) advance strategies on school trust lands to capitalize on ecosystem services markets;

and

deleted text begin

(11) keep the beneficiaries, governor, legislature, and the public informed about the

work of the director by reporting
deleted text end
new text begin
(10) report
new text end
to the Legislative Permanent School Fund

Commission
deleted text begin
in a public meeting at least once during each calendar quarter
deleted text end
new text begin
as required under

subdivision 5
new text end
.

(b) In carrying out the duties under paragraph (a), the school trust lands director may:

(1) direct and control money appropriated to the director;

(2) establish job descriptions and employ staff within the limitations of money

appropriated to the director;

(3) enter into interdepartmental agreements with any other state agency;

(4) enter into joint powers agreements under chapter 471;

(5) evaluate and initiate real estate development projects on school trust lands in

conjunction with the commissioner of natural resources and with the advice of the Legislative

Permanent School Fund Commission to generate long-term economic return to the permanent

school fund; and

(6) submit recommendations on strategies for school trust land leases, sales, or exchanges

to the commissioner of natural resources and the Legislative Permanent School Fund

Commission.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 2.

Minnesota Statutes 2024, section 127A.353, is amended by adding a subdivision

to read:

new text begin

Subd. 5.

new text end

new text begin

Report.

new text end

new text begin

(a) By January 15 each year, the school trust lands director must submit

a written report to the Legislative Permanent School Fund Commission. The report must

inform trust beneficiaries, the governor, the legislature, and the public about school trust

land management activities, and must include information on:

new text end

new text begin

(1) the director's efforts to develop and advocate for sustainable asset management

strategies that reflect undivided loyalty to the trust beneficiaries;

new text end

new text begin

(2) school trust land management policies and activities, including new or emerging

revenue-generating opportunities;

new text end

new text begin

(3) the financial position of school trust land assets, including management costs for the

preceding fiscal year and the revenues deposited in the permanent school fund;

new text end

new text begin

(4) recommended statutory changes that would improve asset allocation, enhance financial

outcomes, or otherwise strengthen the long-term performance of school trust lands; and

new text end

new text begin

(5) amounts distributed from the permanent school fund to Minnesota's public school

districts and charter schools in the preceding fiscal year.

new text end

new text begin

(b) The commissioner of natural resources and the commissioner of education must

provide the director with the data necessary to complete the report.

new text end

new text begin

(c) The report must be submitted in accordance with section 3.195.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end