37-521

37-521. Permanent state school fund;
composition; use

(Caution: 1998 Prop. 105 applies)

A. After any appropriation pursuant to section 37-527, the permanent state school
fund shall consist of:

1. The proceeds of all lands granted to the state by the United States for the
support of common schools.

2. All property which accrues to the state by escheat or forfeiture.

3. All property donated for the benefit of the common schools, unless the terms of
the donation otherwise provide.

4. All unclaimed shares and dividends of any corporation incorporated under the
laws of this state.

5. The proceeds of sale of timber, mineral, gravel or other natural products or
property from school lands and state lands other than those granted for specific
purposes.

6. The residue of the lands granted for payment of the bonds and accrued interest
issued by Maricopa, Pima, Yavapai and Coconino counties, after the purpose of the grant
has been satisfied, and the five per cent of the proceeds of sales of public lands lying
within this state sold by the United States subsequent to admission of this state into
the union, as granted by the enabling act.

B. The fund shall be and remain a perpetual fund and distributions from the fund
pursuant to article X, section 7, Constitution of Arizona, plus monies derived from the
rental of the lands and property, interest and accrued rent for that year credited
pursuant to section 37-295 and interest paid on installment sales, shall be used as
follows:

1. If there are outstanding state school facilities revenue bonds pursuant to title
15, chapter 16, article 6, outstanding qualified zone academy bonds pursuant to title 15,
chapter 16, article 7 or outstanding state school trust revenue bonds issued to correct
existing deficiencies, the state treasurer and the state land department shall annually
transfer to the state school facilities revenue bond debt service fund established in
section 15-2054, the state school improvement revenue bond debt service fund established
in section 15-2084 and the state school trust revenue bond debt service fund the amount
that is necessary to pay that fiscal year's debt service on outstanding state school
facilities revenue bonds, qualified zone academy bonds and state school trust revenue
bonds, before transferring amounts for any other uses.

2. If there are no outstanding state school facilities revenue bonds pursuant to
title 15, chapter 16, article 6 or if the amount of monies available under this
subsection exceeds the amount required under paragraph 1 of this subsection, the monies
are subject to legislative appropriation to the new school facilities fund established by
section 15-2041.

3. If the amount of monies available under this subsection exceeds the amount
required under paragraphs 1 and 2 of this subsection, the legislature may annually
appropriate an amount to be used as provided in section 15-971, subsection H, except that
the amount appropriated may not exceed the amount appropriated from the permanent state
school fund and from the rent and interest paid on installment sales for this purpose in
fiscal year 2000-2001.

4. Notwithstanding paragraphs 1, 2 and 3 of this subsection, from and after June
30, 2001, any expendable earnings under this subsection that exceed the fiscal year
2000-2001 expendable earnings shall be deposited in the classroom site fund established
by section 15-977.