Committee moves to modernize reporting for school trust lands management

Senate File 35-94, considered March 24, would update Minnesota statutes governing the director of School Trust Lands to strengthen transparency, accountability and fiduciary management of assets held for the Permanent School Fund.

The sponsor said the bill replaces outdated reporting language and inefficient quarterly public presentations with a single, comprehensive written annual report to the Legislative Permanent School Fund Commission. The sponsor said the change would include required content such as management activities, new revenue opportunities, financial performance of trust lands, costs versus revenue and recommended statutory improvements. The sponsor also stressed continued fiduciary obligations and long-range planning requirements including a 10-year strategic plan and a 25-year management framework.

Bob Myers, identified in testimony as Assistant Commissioner (Office of School Trust Lands), told the committee the current statute contains a mismatch with practice and that consolidating reporting would provide continuity that oral testimony cannot. "We believe that having a recorded part as opposed to oral testimony has some real inherent value," Myers said, arguing that a written report would make information "documented and accessible, consistent year to year."

DNR staff (Assistant Commissioner Bachmeier) said agencies are working together on an asset-management plan and that some data work remains to be completed before the first consolidated report can be submitted; staff said the missing data would be included in a forthcoming report.

Committee action: the committee adopted an A-1 amendment that repealed certain DNR reporting language and voted to recommend the bill as amended to pass; the chair announced the motion prevailed.

Next steps: the bill was recommended to pass out of committee and will proceed through the legislative process.