77-1-229. Public land trust purchases. (1) Subject to legislative appropriation, the board is authorized to evaluate potential purchases and purchase interests in and appurtenances to real property from the proceeds of the account established in 77-1-228 pursuant to the limitations of 77-1-220, 77-1-228, and this section. Transactional costs may not exceed 7% of the purchase price of acquired property. Prior to purchasing interests in and appurtenances to real property, the board shall consider the following:
(a) the income-generating potential of the real property and appurtenances;
(b) the opportunity for sustainable forest management activities and outcomes as described in 76-13-701 and 76-13-702;
(c) the opportunity for recreational use of the real property and appurtenances consistent with Title 77, chapter 1, part 8; and
(d) the cost-benefits of potential real property and appurtenance purchases. This cost-benefit analysis must be made available to the public upon request.
(2) Prior to purchasing any real property and appurtenances, the board shall determine that the benefits of the purchase are significant and outweigh the financial risks. In order to reach that determination, the board shall examine the purchase of any real property and appurtenances as if the board had a fiduciary duty as a reasonably prudent trustee of a perpetual trust. For the purposes of this section, that duty requires the board to:
(a) discharge its duties with the care, skill, and diligence that a prudent person acting in a similar capacity with the same resources and familiar with similar matters should exercise in the conduct of an enterprise of similar character and aims;
(b) manage the land holdings purchased pursuant to this section in accordance with an asset management plan to minimize the risk of loss and maximize the sustained rate of return;
(c) discharge its duties and powers solely in the interest of and for the benefit of the public land trust;
(d) discharge its duties subject to the fiduciary standards set forth in 72-38-801; and
(e) determine the potential for job creation.
(3) All interests in real property and appurtenances acquired under this section must be managed pursuant to this title and are subject to the provisions of Article X, section 11, of the Montana constitution.
(4) After deductions for administrative costs pursuant to 77-1-109, the net interest and income earned on real property and appurtenances purchased with funds from the account established in 77-1-228 must be distributed to the guarantee account provided for in 20-9-622 for distribution to public schools.