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SF2881 (Legislative Session 94 (2025-2026))

Permanent university fund mining royalty income allocation modifications

AI Generated Summary

Purpose of the Bill

The bill aims to modify how mining royalty income is allocated within Minnesota's permanent university fund. Specifically, it updates the distribution of funds to support mineral-related research, educational programs, and scholarships.

Main Provisions

  • Endowed Chair Account: Income and capital gains from this account are used to provide endowment support for professorial chairs. The support must not exceed 6% of the account's 36-month average market value and cannot constitute more than half of the total endowment support for all chairs, except in specific individual cases.

  • Mineral Research and Scholarship Allocation: Starting in 2026, the income from mining royalties is divided as follows:

    • 25% for Mineral Research: Up to $150 million is allocated to the endowed mineral research account for facilities like the Natural Resources Research Institute in Duluth and Coleraine.
    • 25% for Educational Support: Up to $25 million is directed to endowments for operating costs of programs and scholarships in fields related to mining, STEM, and mineral research at the University of Minnesota and Minnesota North College. Scholarships are prioritized for students in Minnesota Economic Development Region 3.
    • 25% for Natural Resources Research: Supports general operating and research expenses at the Natural Resources Research Institute.
    • 25% for Scholarships: Remaining income supports scholarships based on scholastic achievement for undergraduates at the University of Minnesota.

  • Annual Distribution: Scholarship funds are distributed among University of Minnesota campuses proportionally based on undergraduate resident enrollment.

  • Reporting Requirements: The Board of Regents must report on the fund's disbursement to legislative education committees during the budget submission process.

Significant Changes

  • The allocation structure and income caps from the mining royalties endowments are updated, including changes to amounts directed to specific initiatives.
  • The bill introduces a new focus on supporting industry-academic collaborations and workforce development within the region.

Relevant Terms

  • Permanent university fund
  • Mining royalty income
  • Endowed chair account
  • Mineral research
  • STEM programs
  • Scholarships
  • Natural Resources Research Institute
  • University of Minnesota

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionReferred toHigher Education

Citations

 
[
  {
    "analysis": {
      "added": [
        "A provision clarifying the allocation of funds to the endowed chair account."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the allocation of mining royalty income within the permanent university fund under section 137.022, subdivision 3.",
      "modified": [
        "Adjusts the proportion of income going towards endowment support."
      ]
    },
    "citation": "137.022",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Clarification on income allocation to the Natural Resources Research Institute."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the allocation of mining royalty income for mineral research scholarships under section 137.022, subdivision 4.",
      "modified": [
        "Adjusts the distribution of income to programs and scholarships."
      ]
    },
    "citation": "137.022",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        "Unused references to previous criteria for resident student status."
      ],
      "summary": "This citation is referenced to define 'resident students' for scholarship distribution.",
      "modified": [
        ""
      ]
    },
    "citation": "136A.101",
    "subdivision": "subdivision 8"
  }
]

Sponsors