The bill establishes a new "school generational account" within the permanent land fund, aimed at creating a sustainable source of funding for schools through long-term investments. The account is designed to be inviolate, ensuring that the funds remain intact as perpetual school funds. It mandates that the investment strategy for this account aligns with specific risk profiles, primarily focusing on a mix of private equity and private credit investments. Earnings from this account will be deposited into a newly created "school generational income account," which can only be appropriated for educational purposes after a minimum period of 22 years.

Additionally, the bill amends existing statutes to incorporate the new accounts and outlines the procedures for managing and appropriating funds. It specifies that no earnings from the school generational account can be expended without legislative appropriation, ensuring that the funds are used prudently for the public school foundation program. The bill also includes a one-time appropriation of $100 million from the sale of state school trust lands to the school generational account, which is protected from being transferred or expended for any other purpose. The act is set to take effect immediately upon completion of the necessary legislative processes.

Statutes affected:
Introduced: 9-4-203, 9-4-305, 9-4-310, 9-4-716