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

Additionally, the bill outlines the process for submitting the proposed constitutional amendment to voters during the 2026 state general election, with the goal of increasing funding to school districts without raising individual income or property taxes. It includes amendments to Minnesota Statutes that change references from "income" to "distributable amount" and specifies the calculation and reporting of this amount. The changes will take effect on July 1, 2027, contingent upon voter approval of the amendment.

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