Bill Text: MN SF643 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Permanent school fund investment income earned calculation clarification
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-07 - Referred to Education [SF643 Detail]
Download: Minnesota-2011-SF643-Introduced.html
1.2relating to education finance; clarifying the interest payments on the permanent
1.3school fund;amending Minnesota Statutes 2010, section 11A.16, subdivision 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
1.6 Subd. 5. Calculation of income. As of the end of each fiscal year, the state
1.7board shall calculate the investment income earned by the permanent school fund. The
1.8investment income earned by the fund shall equal the amount of interest on debt securities
1.9and, dividends on equity securities, and interest earned on certified monthly earnings prior
1.10to the transfer to the Department of Education. Gains and losses arising from the sale of
1.11securities shall be apportioned as follows:
1.12(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
1.13be apportioned in equal installments over the next ten fiscal years to offset net losses in
1.14those years. If any portion of an installment is not needed to recover subsequent losses
1.15identified in paragraph (b) it shall be added to the principal of the fund.
1.16(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
1.17be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
1.18gains are insufficient, any remaining net loss shall be recovered from interest and dividend
1.19income in equal installments over the following ten fiscal years.
1.20EFFECTIVE DATE.This section is effective the day following final enactment.
1.3school fund;amending Minnesota Statutes 2010, section 11A.16, subdivision 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
1.6 Subd. 5. Calculation of income. As of the end of each fiscal year, the state
1.7board shall calculate the investment income earned by the permanent school fund. The
1.8investment income earned by the fund shall equal the amount of interest on debt securities
1.9
1.10to the transfer to the Department of Education. Gains and losses arising from the sale of
1.11securities shall be apportioned as follows:
1.12(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
1.13be apportioned in equal installments over the next ten fiscal years to offset net losses in
1.14those years. If any portion of an installment is not needed to recover subsequent losses
1.15identified in paragraph (b) it shall be added to the principal of the fund.
1.16(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
1.17be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
1.18gains are insufficient, any remaining net loss shall be recovered from interest and dividend
1.19income in equal installments over the following ten fiscal years.
1.20EFFECTIVE DATE.This section is effective the day following final enactment.
