Committee advances bill to tighten reporting, oversight of school trust lands director
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Summary
Senators advanced SF 3594 to clarify the director’s reporting duties and improve transparency of the permanent school fund after an Office of School Trust Lands director briefed members on falling mineral revenues and recommendations for asset-management improvements.
The Senate Education Policy Committee voted Feb. 23 to send Senate File 3594 to the Environment, Climate & Legacy Committee after lawmakers and the Office of School Trust Lands director discussed changes to reporting, transparency and fiduciary responsibilities for the permanent school fund.
Senator Hochschild, presenting a bill authored by Senator Cooney, said SF 3594 updates Minnesota statutes to strengthen transparency, accountability and fiduciary management of school trust lands. Director Van de Linde told the panel the office manages a trust made up of about 3.5 million acres of surface and mineral interests and a financial portfolio; he said the fund’s annual revenue has fallen in recent years as mineral revenues declined (from 80% historically to just over 50% of cash-based revenue in 2025) and that roughly $58 million was distributed to K–12 schools in the most recent school year.
Van de Linde described proposed changes that move some reporting from quarterly presentations to a more comprehensive annual written report (due Jan. 15 each year) that would function like a profit-and-loss statement describing gross and net revenues, distributions, and investment performance. He told senators the change would allow the office to provide a fuller operational picture and better legislative oversight. The director also summarized work on an asset-management plan (cost-allocation methods), peatland restoration and exploration of geologic sequestration for carbon.
Committee members responded favorably and the bill was recommended to the Environment, Climate & Legacy Committee by voice vote with no recorded opposition.
What’s next: SF 3594 moves to Environment, Climate & Legacy for further consideration; if enacted, it would change reporting cadence and statutory duties for the school trust lands director.