1.1.................... moves to amend H.F. No. 1061, the second engrossment, as follows:
1.2Page 2, line 28, delete "land management" and insert "trust under section 471.6176"
1.3Page 2, line 29, delete "account in the special revenue fund"
1.4Page 5, line 17, delete "land management" and insert "trust under section 471.6176"
1.5Page 5, line 18, delete "account in the special revenue fund"
1.6Page 5, line 32, delete "land management account" and insert "trust under section
1.7471.6176"
1.8Page 5, line 33, delete "in the special revenue fund"
1.9Page 6, line 27, delete "land management account" and insert "trust under section
1.10471.6176"
1.11Page 6, line 28, delete "in the special revenue fund"
1.12Page 9, line 21, delete "land management account in the" and insert "trust under
1.13section 471.6176"
1.14Page 9, line 22, delete "special revenue fund"
1.15Page 11, line 22, delete "land management" and insert "trust under section 471.6176"
1.16Page 11, line 23, delete "account in the special revenue fund"
1.17Page 12, line 15, delete "land management" and insert "trust under section 471.6176"
1.18Page 12, line 16, delete "account in the special revenue fund"
1.19Page 13, line 19, delete "land management account" and insert "trust under section
1.20471.6176"
1.21Page 13, line 20, delete "in the special revenue fund"
1.22Page 14, line 4, delete "land management account" and insert "trust under section
1.23471.6176"
1.24Page 14, line 5, delete "in the special revenue fund"
1.25Page 29, delete section 4
1.26Page 35, after line 14, insert:

1.27    "Sec. 11. [471.6176] TRUST FOR RECEIPT OF ACQUISITION COSTS.
2.1    Subdivision 1. Authorization; establishment. (a) Except as otherwise provided in
2.2this section, a county in which the state acquires property which was purchased directly
2.3or indirectly using monies from the Outdoor Heritage Fund or Environmental Resources
2.4Trust Fund shall establish a trust to receive the funds provided for in subdivision 6.
2.5(b) For purposes of this section, the following terms have the meanings given:
2.6(1) "acquires" means the purchase, acceptance of a donation, or other transfer of
2.7property to a state agency;
2.8(2) "trust" means a trust, a trust account, or a custodial account or contract authorized
2.9under section 401(f) of the Internal Revenue Code; and
2.10(3) "municipality" means any statutory or home rule charter city or a town.
2.11    Subd. 2. Purpose of trust. The trust established under this section may only be
2.12used to receive the funds provided for in subdivision 6 to be used to reimburse the county
2.13and affected municipalities for property tax revenues lost or reduced because the state has
2.14acquired the property removing it from the local tax base.
2.15    Subd. 3. Trust administrator. The trust administrator of a trust established under
2.16this section must be one of the following:
2.17(1) the commissioner of revenue;
2.18(2) a bank or banking association incorporated under the laws of the United States or
2.19of any state and authorized by the laws under which it is organized to exercise corporate
2.20trust powers; or
2.21(3) an insurance company or agency qualified to do business in Minnesota which has
2.22at least five years' experience in investment products and services for group retirement
2.23benefits and which has a specialized department dedicated to services for retirement
2.24investment products.
2.25(b) A political subdivision or public entity may, in its discretion and in compliance
2.26with any applicable trust document, change trust administrators and transfer trust assets
2.27accordingly.
2.28    Subd. 4. Account maintenance. (a) A county must establish a trust account to be
2.29held under the supervision of the trust administrator for the purposes of this section. A
2.30trust administrator shall establish a separate account for each participating county. The
2.31trust administrator may charge participating counties fees for reasonable administrative
2.32costs. A trust administrator may establish other reasonable terms and conditions for
2.33creation and maintenance of these accounts.
2.34(b) The trust administrator must report to the county on the investment returns
2.35of invested trust assets and on all investment fees or costs incurred by the trust. The
2.36annual rates of return, along with investment and administrative fees and costs for the
3.1trust, must be disclosed in the county's annual financial audit in a manner prescribed
3.2by the state auditor.
3.3(c) Effective for fiscal years beginning after December 31, 2011, the trust
3.4administrator must report electronically to the state auditor the portfolio and performance
3.5information specified in section 356.219, subdivision 3, in the manner prescribed by
3.6the state auditor.
3.7    Subd. 5. Investment. (a) The assets of a trust or trust account must be invested and
3.8held as stipulated in paragraphs (b) to (e).
3.9(b) The commissioner of revenue must certify all money in the trust accounts for
3.10which it is trust administrator to the State Board of Investment for investment under
3.11section 11A.14, subject to the policies and procedures established by the State Board of
3.12Investment. Investment earnings must be credited to the trust account of the individual
3.13political subdivision or public entity.
3.14(c) A trust administrator must ensure that all money in the trust accounts for which it
3.15is trust administrator is invested by a registered investment adviser, a bank investment
3.16trust department, or an insurance company or agency retirement investment department.
3.17Investment earnings must be credited to the trust account of the individual political
3.18subdivision or public entity.
3.19(d) For trust assets invested by the State Board of Investment, the investment
3.20restrictions are the same as those generally applicable to the State Board of Investment.
3.21For other trust assets, the assets may only be invested in investments authorized under
3.22chapter 118A or section 356A.06, subdivision 7, in the manner specified in the applicable
3.23trust document.
3.24(e) A political subdivision or public entity may provide investment direction to a
3.25trust administrator in compliance with any applicable trust document.
3.26    Subd. 6. Acquisition costs responsibility. (a) Except as provided in paragraph (b),
3.27when acquiring property using monies from the Outdoor Heritage Fund or Environmental
3.28Resources Trust Fund, or when acquiring property from another entity that used monies
3.29from the Outdoor Heritage Fund or Environmental Resources Trust Fund to acquire the
3.30property, the state agency must provide for all closing expenses including a onetime
3.31payment equal to thirty times the assessed tax liability owed to the county and affected
3.32municipality for the year in which the acquisition occurs. Any outstanding property
3.33tax liability owed to the county and affected municipality for the year in which the
3.34acquisition is made is to be deducted from the maintenance payment and paid to the
3.35affected county and municipality. The remainder of the payment is to be deposited into the
3.36trust established under this section.
4.1(b) A county, with approval of the affected municipality, may enter into an
4.2alternative agreement negotiated with the responsible state agency. The county may make
4.3the sole decision in the event the property being acquired by a state agency is located
4.4in unorganized territory.
4.5    Subd. 7. Withdrawal of funds and termination of account. (a) Within any tax
4.6year a county may only withdraw funds from the trust account in an amount not to exceed
4.7the amount needed to make the tax obligation that would have attached to the property had
4.8it not been acquired by the state agency.
4.9(b) Should any parcel of land for which a payment has been made to a county under
4.10subdivision 6 be sold or otherwise have the ownership interest transferred to an entity such
4.11that the property is again subject to taxation by the county and local municipalities, the
4.12county shall withdraw from the trust an amount equal to the original payment under
4.13subdivision 6 for the parcel and return that amount to the state for deposit in the fund from
4.14which the payment under subdivision 6 was made. In the event no funds remain in the
4.15trust after a payment is made under this paragraph, the county may terminate the trust.
4.16(c) The legislature and executive branch must not divert funds in any trust created
4.17under this section or use trust accounts for another purpose.
4.18    Subd. 8. Status of irrevocable trust. (a) All money in an irrevocable trust or trust
4.19account created in this section is held in trust for the exclusive benefit of the county and
4.20affected municipalities within the county and is not subject to claims by creditors of the
4.21state, the participating political subdivision or public entity, the current or former officers
4.22and employees of the political subdivision or public entity, or the trust administrator.
4.23(b) An irrevocable trust fund or trust account created in this section is deemed an
4.24arrangement equivalent to a trust for all legal purposes.
4.25EFFECTIVE DATE.This section is effective the day following final enactment,
4.26and is applicable immediately to all political subdivisions in which Lessard-Sams Outdoor
4.27Heritage Council Legacy Funds or LCCMR Environmental Trust Account funds are
4.28used to acquire property."
4.29Renumber the sections in sequence and correct the internal references
4.30Amend the title accordingly