The bill amends existing laws regarding the investment of state funds, specifically focusing on the common school account within the permanent land fund. It decreases the annual spending policy amount from five percent (5%) to four and three-quarters percent (4.75%) for fiscal year 2026, and further reduces it to four and one-half percent (4.5%) for each fiscal year thereafter. Additionally, the bill specifies the distribution of investment earnings and federal mineral royalties, ensuring that appropriations are credited to the common school account and the common school permanent fund reserve account in equal amounts, unless certain conditions regarding the reserve account balance are met.

Furthermore, the bill makes conforming amendments to clarify the disposition of investment earnings and the appropriations process. It establishes that any revenue exceeding two hundred million dollars ($200,000,000) will be distributed to the specified accounts, and it mandates that the state treasurer calculate the annual appropriations based on the earnings from the common school account. The effective date for this act is set for July 1, 2025.

Statutes affected:
Introduced: 9-4-601, 9-4-719
Engrossed: 9-4-601, 9-4-719