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Senate approves substitute joint resolution with intent language clarifying treatment of fund income
Summary
Senators passed the First Substitute Senate Joint Resolution 2, including circulated intent language clarifying that 'interest' does not include appreciation and describing how dividend/interest income may be treated; sponsor provided fund balances and five‑year totals during floor discussion.
The Senate passed First Substitute Senate Joint Resolution 2 on January 30 and included legislative intent language circulated on the floor clarifying treatment of fund income.
Sponsor Senator Hilliard said the treasurer's office and legislative legal counsel drafted the intent language to make explicit that "interest does not include the appreciation of values of equities or other assets," and to clarify how dividend and interest income are considered in the fund. During floor discussion Hilliard provided fiscal context: "in 5 years, we put just a titch over $15,000,000," about $3,000,000 per year, and that the fund balance is approximately $350,000,000.
Senator Hilliard said the language makes the statute defensible and aligns with the attorney general's guidance, and moved the first substitute SJR 2 with the intent language as part of the record. The Senate recorded the roll call as 25 aye, 0 nay, 4 absent and passed the resolution, which will be transmitted to the House for further consideration.
Why it matters: The intent language affects how income from a public fund is characterized and may influence whether income is treated as distributable interest versus capital appreciation — a distinction with potential implications for beneficiaries and legal defensibility.
What’s next: The resolution, including the intent language, will be referred to the House for further consideration; any enactment or ballot placement will follow the legislative process.
