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 introduces a new distribution policy that focuses on providing annual distributions while preserving the fund's purchasing power over time. The amendment also establishes a board of investment responsible for overseeing the fund's management and prohibits the use of state funds for underwriting or purchasing municipal securities directly from issuers.

Additionally, the bill amends Minnesota Statutes to change the terminology from "income" to "distributable amount" in relation to the permanent school fund. It outlines the calculation of this distributable amount based on a percentage of the fund's average net asset value over the preceding three fiscal years. The bill also specifies that the distributable amount will be transferred to the school endowment fund for public school aid. If the proposed constitutional amendment is approved by voters in the 2026 state general election, these changes will take effect on July 1, 2027, for aid payable in fiscal year 2028.

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