(1) There is established in the state treasury the public school earnings reserve fund. The fund shall be managed and invested by the endowment fund investment board according to law and the policies established by the state board of land commissioners. The public school earnings reserve fund shall consist of the following:
(a)  All earnings of the public school permanent endowment fund;
(b)  Proceeds of the sale of timber on public school endowment lands;
(c)  Proceeds of leases of public school endowment lands;
(d)  Proceeds of interest charged upon deferred payments on public school endowment lands or timber on those lands;
(e)  Earnings on contracts for the sale of timber and the sale of lands related to the public school endowment; and
(f)  All other proceeds received from the use of public school endowment lands and not otherwise designated for deposit in the public school permanent endowment fund.
(2)  Moneys shall be distributed out of the public school earnings reserve fund only to support the beneficiaries of the public school endowment, including distributions by the state board of land commissioners to the public school permanent endowment fund and the public school income fund; provided, that funds shall not be appropriated by the legislature from the public school earnings reserve fund except to pay for administrative costs incurred managing the assets of the public school endowment including, but not limited to, real property and monetary assets.