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.
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.
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.