2006 Minnesota Statutes

137.022 PERMANENT UNIVERSITY FUND.
    Subdivision 1. Investment. The investment management of the permanent university fund
shall be under the jurisdiction of the Board of Regents of the University of Minnesota, subject
to any limitations imposed by the Constitution of the state of Minnesota, article XI, section 9.
All securities and cash held in the state treasury credited to the permanent university fund that
are unappropriated or unencumbered are transferred and appropriated to the Board of Regents of
the University of Minnesota solely for the purpose of investment by them. The investments are
restricted to those the State Board of Investment may invest in under section 11A.24.
    Subd. 2. Income. All income from the permanent university fund is appropriated annually
to the Board of Regents. Authority over this income is vested solely in the board but must be
used by the board directly to enhance the mission of the university. This appropriation of income
must not be used to reduce other appropriations made to the Board of Regents. The determination
of this income shall be based on the procedures detailed in section 11A.16, subdivision 5, or
11A.12, subdivision 2.
    Subd. 3. Endowed chair account. (a) For purposes of this section, the permanent university
fund has three accounts. The sources of the money in the endowed mineral research and
scholarship accounts are set out in paragraph (b) and subdivision 4. All money in the fund that
is not otherwise allocated is in the endowed chair account. The income from the endowed
chair account must be used, and capital gains allocated to that account may be used, to provide
endowment support for professorial chairs in academic disciplines. The endowment support
for the chairs from the income and the capital gains must not total more than six percent per
year of the 36-month trailing average market value of the endowed chair account of the fund,
as computed quarterly or otherwise as directed by the regents. The endowment support from
the income and the capital gains must not provide more than half the sum of the endowment
support for all university chairs and professorships endowed, with nonstate sources providing the
remainder. The endowment support from the income and the capital gains may provide more than
half the endowment support of an individual chair.
(b) If any portion of the annual appropriation of the income is not used for the purposes
specified in paragraph (a) or subdivision 4, that portion lapses and must be added to the principal
of the three accounts of the permanent university fund in proportion to the market value of each
account.
    Subd. 4. Mineral research; scholarships. (a) All income credited after July 1, 1992, to the
permanent university fund from royalties for mining under state mineral leases from and after
July 1, 1991, must be allocated as provided in this subdivision.
(b)(1) Fifty percent of the income, up to $50,000,000, must be credited to the mineral
research account of the fund to be allocated for the Natural Resources Research Institute-Duluth
and Coleraine facilities, for mineral and mineral-related research including mineral-related
environmental research; and
(2) The remainder must be credited to the endowed scholarship account of the fund
for distribution annually for scholastic achievement as provided by the Board of Regents to
undergraduates enrolled at the University of Minnesota who are resident students as defined
in section 136A.101, subdivision 8.
(c) The annual distribution from the endowed scholarship account must be allocated to the
various campuses of the University of Minnesota in proportion to the number of undergraduate
resident students enrolled on each campus.
(d) The Board of Regents must report to the education committees of the legislature
biennially at the time of the submission of its budget request on the disbursement of money
from the endowed scholarship account and to the environment and natural resources committees
on the use of the mineral research account.
(e) Capital gains and losses and portfolio income of the permanent university fund must be
credited to its three accounts in proportion to the market value of each account.
(f) The endowment support from the income and capital gains of the endowed mineral
research and endowed scholarship accounts of the fund must not total more than six percent
per year of the 36-month trailing average market value of the account from which the support
is derived.
History: 1963 c 567 s 2; 1965 c 41 s 1; 1971 c 197 s 3; 1976 c 2 s 172; 1980 c 516 s 2;
1980 c 607 art 14 s 45 subd 2; s 46; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1985 c 248 s
70; 1Sp1985 c 11 s 65; 1990 c 591 art 6 s 8,9; 1Sp1993 c 2 art 4 s 1,2; 1997 c 183 art 3 s 26;
2003 c 133 art 2 s 19; 2006 c 282 art 8 s 7