The proposed bill aims to establish a Rural Community Endowment Fund and a corresponding committee to oversee its administration. The fund will be created within the state treasury and will consist of moneys transferred by the legislative assembly, as well as gifts, donations, or bequests received for its purposes. The principal of the fund is to remain intact, with expenditures allowed only from the income generated by investments once the fund reaches a minimum of ten million dollars, including at least five million from non-state sources. The bill also outlines that the investment of the fund will be supervised by the state investment board and specifies that the fund's income will be used to provide grants to rural communities for various development projects, excluding operating funds for local entities.

Additionally, the bill mandates the formation of a Rural Community Endowment Fund Committee, which will consist of the commissioner and nine individuals from rural communities, along with a representative from a nonprofit organization focused on housing initiatives and small businesses. The committee will prioritize capital projects that enhance the quality of life in rural areas and will be responsible for determining grant application processes and evaluation criteria. The bill includes a one-time appropriation of $5 million from the general fund to support the establishment of the Rural Community Endowment Fund, with a requirement for annual reporting to the legislative management on the fund's status and outcomes.