Ballot Questions Tex and Explanations - Amendment C
Title:
An amendment to section 11 of Article VIII of the Constitution of the state
of South Dakota, relating to the investment of permanent educational funds.
Explanation:
The Constitution now allows the State's permanent school fund to be invested
in: U.S. bonds; securities guaranteed by the U.S.; and bonds issued by our state
or local governments. The proposed amendment would allow the fund to be invested
in: school bonds; certificates of deposit issued by South Dakota banks;
investment grade corporate stock; U.S. government guaranteed bonds; and agency
securities and obligations. Up to 50% of the fund could be invested in common
stock. The Legislature's authority to regulate investments would be transferred
to the Commissioner of School and Public Lands.
- A vote "YES" will change how the permanent school fund is invested.
- A vote "NO" will leave the manner of investment as it is.
Full Text of Constitutional Amendment C:
That section 11, Article VIII of the Constitution of the state of South
Dakota be amended to read as follows:
11. The moneys of the permanent school and other educational funds shall be
invested by the commissioner of school and public lands, consistent with the
prudent man rule, in certificates of deposit or other like obligations issued by
banks domiciled in or located in this state, in bonds of the state of South
Dakota or in bonds of any school corporation, in one hundred percent United
States government guaranteed bonds, in agencies guaranteed by the United States,
in investment grade corporate debt and in common stocks up to fifty percent.
