Senate Bill 1126 Summary

• Creates the Economic Reserve and Investment Fund in the state treasury to provide funding for the Strategic Initiatives Program, cover general fund revenue shortfalls, and meet disaster relief expenses.

• Transfers $272 million from the Budget Stabilization Fund to the new Economic Reserve and Investment Fund on July 1, 2019, and authorizes distributions of $38.2 million on July 15, 2019, and $1.00 on July 15, 2020, to the Strategic Initiatives Program Fund.

• Establishes automatic annual transfers of up to 5% of the Economic Reserve and Investment Fund's average monthly fair market value to the Strategic Initiatives Program Fund beginning July 1, 2021, provided the Budget Stabilization Fund maintains at least 1.5% of general fund revenues.

• Increases the distribution of sales tax revenues to the Permanent Building Fund from $5 million to $10 million annually.

• Declares an emergency and sets varying effective dates for different sections, with most provisions effective June 1, 2019 or July 1, 2019.