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. This account is designed to be inviolate, meaning the principal amount will remain untouched, while the earnings generated from investments will be allocated to a newly created "school generational income account." The bill outlines specific investment strategies, requiring that the risk profile of the school generational account not exceed that of a reference portfolio consisting of 85% private equity and 15% private credit. Additionally, it stipulates that earnings from this account can only be appropriated for educational purposes after a minimum period of 22 years.

The bill also amends existing statutes to incorporate the new accounts and their definitions, ensuring that appropriations from the school generational income account are executed in consultation with the state treasurer. It includes a provision for an 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