Permanent school fund investment, management, and distribution policy modified; and constitutional amendment proposed.

Added a requirement that laws changing the distribution policy or apportionment of the Permanent School Fund must pass with a two-thirds vote in each legislative house.

Updated the document title and posting date to reflect the 1st Unofficial Engrossment version.

Adjusted section numbering formatting to insert blank lines between specific subsections.

The posting date of the bill was updated from April 20, 2026, to May 16, 2026.

The effective date for the new school fund distribution rules was changed from July 1, 2027 (for fiscal year 2028) to July 1, 2027 (for fiscal year 2028), but the section reference was changed from Sections 1-5 to Sections 3-5, indicating a shift in which parts of the bill trigger the new timeline.

The requirement for the permanent school fund distribution policy to balance the needs of both current and future beneficiaries was removed, simplifying the mandate to focus on preserving purchasing power and providing annual distributions.

The constitutional text was updated to change the description of the fund's purpose from 'supporting school districts' to 'apportioning money to school districts' and added a specific goal of increasing funding without raising taxes.

The calculation of distributable earnings was modified to require the state board to calculate 4.5 percent of the average net asset value of the fund over the preceding three fiscal years.

A new section was added to establish the School Endowment Fund, detailing how it receives distributable amounts from the permanent school fund and how it handles cash and marketable securities donations.

The effective date for the statutory changes was adjusted to July 1, 2027, with aid payable in fiscal year 2028, and the reporting deadline for distributable amounts was set to August 15.