The bill amends the existing law regarding the state children's trust fund, which is established within the Department of Treasury. Key changes include the requirement that the fund "must" be expended only as specified in the law, rather than "shall," and that the state treasurer "has" the authority to invest the fund's assets, replacing the previous "shall have." Additionally, the bill stipulates that beginning in fiscal year 2026, up to 8% of the 12-quarter rolling average of the fund must be available for disbursement, which is an increase from the previous limits.

Other modifications include the clarification that money received as gifts or donations to the trust fund is available for disbursement upon appropriation, and that these funds are not considered assets of the trust fund for disbursement purposes. The bill also mandates that the state treasurer must prepare an annual accounting of revenues and expenditures from the trust fund, specifically detailing interest and earnings, and how these have been impacted by expanded investment options. This accounting must be provided to the appropriations committees of both the Senate and House of Representatives.

Statutes affected:
Senate Introduced Bill: 21.171