The Minnesota Attorney General's Office has referred concerns about University of Minnesota President Joan Gabel's position on Securian Financial's board of directors to the legislative auditor and Legislative Audit Commission.

Deputy Attorney General James Canaday wrote in a letter earlier this month that the office was expressing "no opinion on the merits" of the concerns. He said those entities had, in at least one instance, investigated a university president's spending.

The referral came after U Regent Darrin Rosha, law professor Richard Painter and former Gov. Arne Carlson asked the Attorney General's Office and the U.S. Securities and Exchange Commission to investigate the matter.

The university has more than $1 billion worth of business with St. Paul-based Securian Financial. The U's Board of Regents voted last month to allow Gabel to take a paid position on the company's board if she agreed to terms to manage a conflict of interest.

Representatives of the university and Securian Financial said their entities hadn't been contacted directly by the state agencies being asked to review the matter. Gabel declined to comment Wednesday.

Jeff Bakken, a spokesman for Securian Financial, said, "We stand by our appointment of Ms. Gabel to our board of directors."

In their letter, Rosha, Painter and Carlson pointed to a state law prohibiting university employees from accepting money from a corporation that contracts with the university, if they are involved in the contracting process or "directly or indirectly" influence it.

The conflict management plan that regents approved in a 9-3 vote requires Gabel to recuse herself from decisions on contracts involving the university and Securian Financial or affiliates.

In a letter to Rosha, Painter and Carlson, Attorney General Keith Ellison said he didn't believe his office had jurisdiction to investigate the matter, unless the governor or a county attorney asks him to do so.

He said his personal opinion — which doesn't carry legal weight — was that the situation "gives the appearance that her loyalties are divided between the University and Securian, and it's ill-advised."

John Stiles, a spokesman for the Attorney General's Office, said that as of Wednesday neither the governor's office nor a county attorney had asked Ellison to look into the matter.

Gov. Tim Walz "has expressed serious concerns" to both Gabel and Ellison, according to a statement from his office. The statement said Ellison "has not recommended we refer the case to him for criminal charges," and "we trust his approach" in referring the matter to the legislative auditor.

A representative for the Hennepin County Attorney's Office did not return messages.

At the Capitol, some lawmakers are considering banning the practice, and some members of a screening committee asked candidates for the U's Board of Regents how they would have handled the matter.

Legislative Auditor Judy Randall said her office is conducting a preliminary assessment to decide if a full investigation is warranted.

Sen. Mark Koran, R-North Branch, who chairs the Legislative Audit Commission, said he hopes to get bipartisan support to examine the situation "and determine if a legislative solution is needed."

"I wouldn't have thought we would need to define what a conflict is so clearly, but the lax oversight by the Board of Regents in this situation is going to force our hand," he said in a statement.

The university pays about $4.6 million each year to Minnesota Life, a Securian Financial affiliate, to cover basic life insurance for its employees. The U transferred its retirement plan administration from Securian to Fidelity a couple of years ago but still has about $1.3 billion in "legacy business" with Securian, according to a letter written by leaders of the university's Conflict of Interest Program and Institutional Conflict Review Panel.

Gabel is set to earn about $1 million from the university each year. She told regents the position on Securian's board pays about $130,000 per year.

Rosha has asked his colleagues on the Board of Regents to call a special meeting by month's end to reconsider the matter. He was among the three who voted against allowing the arrangement.

Board Chair Ken Powell didn't respond to a message Wednesday. University spokesman Jake Ricker said regents "are evaluating the information presented and how best to proceed."

Powell is one of four regents whose terms expire this year. In an interview with the Regent Candidate Advisory Council last week, he defended the decision to allow Gabel to take the Securian position.

Powell said corporate and nonprofit boards he has served on included presidents, deans or professors, because "they bring an independent point of view and they bring expertise."

Powell said he thought the experience that Gabel would gain from sitting on the board and watching how another chief executive operates would be invaluable.

"I didn't have any issues with it whatsoever," Powell added.

The council declined to recommend Powell or Painter — who also applied — for openings on the board of regents. The final decision will be made by state lawmakers.