Bill > HCR2047

This resolution proposes an amendment to Article X, Section 7 of the Arizona Constitution regarding state land trust permanent funds, which would modify how these funds are established, invested, and distributed. The resolution establishes detailed guidelines for creating separate permanent funds for different land grant purposes, prohibiting transfers between funds, and requiring investments in safe and prudent securities. It creates a board of investment with specific investment restrictions, such as limiting equity investments to 60% of a fund and no more than 5% in securities from a single institution. The resolution also outlines a complex distribution schedule for fund earnings, with different percentages applied across various fiscal year periods (2.5% in some years, 6.9% in others), and includes provisions for potentially reducing distributions if fund market values decrease. A key new provision allows for a potential modification to the distribution method if voters approve a statewide program to increase teacher base salaries, which would enable a 6.9% distribution from certain permanent funds for a ten-year period to support teacher salary increases. The proposed amendment would be submitted to voters at a special election in 2025 for approval.

Education

https://apps.azleg.gov/BillStatus/BillOverview/82719