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SF 3455

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 03:48pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; creating a task force to examine the permanent school
fund endowment; requiring a report; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text beginPERMANENT SCHOOL FUND; DISTRIBUTION OF SCHOOL
ENDOWMENT FUND EARNINGS TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin A task force of ten members is established to
examine the distribution of earnings from the school endowment fund of the permanent
school fund.
new text end

new text begin Subd. 2. new text end

new text begin Membership qualifications and appointments. new text end

new text begin (a) Appointed members of
the task force must have outstanding professional experience in at least one of the following
areas:
new text end

new text begin (1) institutional asset management;
new text end

new text begin (2) investment finance;
new text end

new text begin (3) trust administration;
new text end

new text begin (4) investment fund accounting;
new text end

new text begin (5) investment banking; or
new text end

new text begin (6) the practice of law in the areas of capital markets, securities funds, trusts, foundations,
or endowments.
new text end

new text begin (b) The task force consists of the following ten members, each of whom must be
appointed by October 1, 2020:
new text end

new text begin (1) the commissioner of education or the commissioner's designee;
new text end

new text begin (2) an employee or other member appointed by the State Board of Investment;
new text end

new text begin (3) three members appointed by the governor, including at least one attorney whose
legal practice area includes significant knowledge of and experience in working with trusts;
new text end

new text begin (4) two members appointed by the house of representatives, one appointed by the speaker
of the house and one appointed by the minority leader;
new text end

new text begin (5) two members appointed by the senate, one appointed by the majority leader and one
appointed by the minority leader; and
new text end

new text begin (6) one member appointed by vote of the Legislative Permanent School Fund
Commission.
new text end

new text begin (c) The first meeting of the task force must be called by the commissioner of education.
The Department of Education must provide staff, technical assistance, and organizational
support for the task force.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The task force must examine the historical returns on the permanent
school fund endowment and evaluate and recommend potential changes in the investment
mix to maximize the long-term returns from the fund. The task force must also evaluate the
distribution of earnings and capital growth in the fund. The task force may examine school
trust endowment policies in other states. The task force recommendations may include
proposed changes to state statutes and Minnesota's constitutional provisions governing the
school endowment fund of the permanent school fund.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The task force must report its recommendations to the chairs and
ranking minority members of the legislative committees with jurisdiction over the permanent
school fund by January 15, 2022. The task force report must be submitted consistent with
Minnesota Statutes, section 3.195.
new text end

Sec. 2. new text beginPERMANENT SCHOOL FUND ENDOWMENT TASK FORCE;
APPROPRIATING MONEY.
new text end

new text begin $....... in fiscal year 2021 is appropriated from the general fund to the commissioner of
education for the permanent school fund endowment task force. This appropriation is
available until June 30, 2022.
new text end