MS HB394

Expands allowable uses of funds from sixteenth section or lieu lands to include proceeds from the sale of nonrenewable resources such as sand, gravel, dirt, clays, mineral ores, coal, oil, and gas royalties, permitting expenditure for any purpose authorized by law.

Allows funds received from timber sales to be placed in a separate principal fund account and expended for any lawful purpose, rather than restricting them to interest and income only.

Maintains the permanent principal fund structure for sixteenth section school trust lands while clarifying which fund sources constitute principal versus expendable income.

Makes technical amendments to Section 29-3-113 to conform the principal fund definition with the expanded expenditure authority for timber and nonrenewable resource sales.

Takes effect July 1, 2010.