This bill proposes an amendment to the Minnesota Constitution regarding the management and distribution of the permanent school fund. The amendment aims to modify Article XI, Section 8, to ensure that the fund is managed as a perpetual financial resource specifically for the benefit of school districts. It emphasizes the need for annual distributions while preserving the fund's purchasing power over time and allows for reasonable administrative costs to be covered from the fund. The amendment also establishes a board of investment to oversee the fund's management and requires that the proposed changes be submitted to voters during the 2026 state general election.

In addition to the constitutional amendment, the bill includes statutory changes to Minnesota Statutes, specifically sections 11A.16 and 127A.32. These changes replace references to "income" with "distributable amount" and outline the calculation and reporting of this amount to ensure transparency and accountability. The bill also establishes a school endowment fund to aid public schools, which will consist of the distributable amounts from the permanent school fund. The effective date for these changes is set for July 1, 2027, contingent upon the adoption of the constitutional amendment by voters.

Statutes affected:
Introduction: 11A.16
1st Engrossment: 11A.16, 127A.32
2nd Engrossment: 11A.16, 127A.32
3rd Engrossment: 11A.16, 127A.32