2007 Minnesota Statutes

11A.16 PERMANENT SCHOOL FUND.
    Subdivision 1. Establishment. Pursuant to article XI, section 8, of the Constitution of
the state of Minnesota, there is hereby established a permanent school fund which shall be a
continuation of the permanent school fund in existence on January 1, 1980.
    Subd. 2. Assets. The permanent school fund shall consist of the proceeds derived from the
school lands, the swamp lands and the internal improvement lands granted to the state and all
cash and investments credited to the permanent school fund, to the swamp land fund and to
the internal improvement land fund.
    Subd. 3. Management. The permanent school fund shall be managed by the commissioner
of finance.
    Subd. 4. Investment. The permanent school fund shall be invested by the state board subject
to the provisions of section 11A.24.
    Subd. 5. Calculation of income. As of the end of each fiscal year, the state board shall
calculate the investment income earned by the permanent school fund. The investment income
earned by the fund shall equal the amount of interest on debt securities and dividends on equity
securities. Gains and losses arising from the sale of securities shall be apportioned as follows:
(a) If the sale of securities results in a net gain during a fiscal year, the gain shall be
apportioned in equal installments over the next ten fiscal years to offset net losses in those years.
If any portion of an installment is not needed to recover subsequent losses identified in paragraph
(b) it shall be added to the principal of the fund.
(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall be
recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these gains are
insufficient, any remaining net loss shall be recovered from interest and dividend income in equal
installments over the following ten fiscal years.
    Subd. 6. Disposition of income. Notwithstanding provisions of section 11A.12, the income
of the permanent school fund as calculated pursuant to subdivision 5, shall be credited to the
permanent school fund, and transferred to the school endowment fund as needed for payments
made pursuant to section 127A.32.
History: 1980 c 607 art 14 s 14; 1984 c 482 s 3; 1992 c 539 s 2; 1999 c 86 art 1 s 3