2006 Legislation
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SENATE JOINT RESOLUTION NO. 107 – Millennium Permanent Endowment Fund

SENATE JOINT RESOLUTION NO. 107

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Bill Status



SJR107...............................................by JUDICIARY AND RULES
MILLENNIUM PERMANENT ENDOWMENT FUND - Proposing an amendment to the
Constitution of the State of Idaho by the addition of a new section to
create an Idaho Millennium Permanent Endowment Fund; to provide that the
Idaho Millennium Permanent Endowment Fund shall consist of eighty percent
of the moneys received each year by the state of Idaho pursuant to the
Master Settlement Agreement and any other moneys that may be appropriated
or otherwise directed to the fund by the Legislature; to provide that such
moneys shall remain inviolate and intact except that each year the State
Treasurer shall distribute five percent of the Idaho Millennium Permanent
Endowment Fund's average monthly fair market value for the first twelve
months of the preceding twenty-four months to the Idaho Millennium Income
Fund; to create an Idaho Millennium Income Fund subject to appropriation as
provided by law; to provide that the Idaho Millennium Income Fund shall
consist of the distribution from the Idaho Millennium Permanent Endowment
Fund and other moneys that may be appropriated or otherwise directed to the
fund as provided by law; to provide that the remaining twenty percent of
the moneys received pursuant to the Master Settlement Agreement and the
earnings thereon, shall be deposited to the Idaho Millennium Fund; to
provide that the Idaho Millennium Fund may consist of any moneys that may
be appropriated or otherwise directed to the fund by the Legislature; to
provide that moneys in the Idaho Millennium Fund shall be allowed to
accumulate; to provide that any amounts so accumulating in the Idaho
Millennium Fund which exceed a maximum limit, shall be transferred to the
Idaho Millennium Permanent Endowment Fund; and to provide that such moneys
and earnings transferred to the Idaho Millennium Permanent Endowment Fund
shall also remain inviolate and intact.
                                                                        
02/14    Senate intro - 1st rdg - to printing
02/15    Rpt prt - to Fin
02/24    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
03/01    3rd rdg - PASSED - 31-4-0
      AYES -- Andreason, Brandt, Broadsword, Burkett, Burtenshaw, Cameron,
      Coiner, Compton, Corder, Darrington, Fulcher, Gannon, Geddes, Goedde,
      Hill, Jorgenson, Kelly, Keough, Langhorst, Lodge, Marley, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet,
      Werk, Williams
      NAYS -- Bunderson, Davis, Little, Malepeai
      Absent and excused -- None
    Floor Sponsors - Lodge, Cameron & Werk
    Title apvd - to House
03/02    House intro - 1st rdg - to St Aff
03/10    Rpt out - rec d/p - to 2nd rdg
03/13    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 65-0-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Stevenson, Trail, Wills, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Bastian, Crow, Edmunson, Snodgrass, Wood
    Floor Sponsor - Clark
    Title apvd - to Senate
03/17    To enrol
03/20    Rpt enrol - Pres signed - Sp signed
03/21    To Secretary of State

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE JOINT RESOLUTION NO. 107
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                  A JOINT RESOLUTION
  2    PROPOSING AN AMENDMENT TO ARTICLE VII OF THE  CONSTITUTION  OF  THE  STATE  OF
  3        IDAHO,  BY THE ADDITION OF A NEW SECTION 18, ARTICLE VII, OF THE CONSTITU-
  4        TION OF THE STATE OF IDAHO,  TO   CREATE  AN  IDAHO  MILLENNIUM  PERMANENT
  5        ENDOWMENT  FUND,  TO PROVIDE THAT THE FUND SHALL CONSIST OF EIGHTY PERCENT
  6        OF THE MONEYS RECEIVED EACH YEAR BY THE STATE OF IDAHO ON AND AFTER  JANU-
  7        ARY  1,  2007,  PURSUANT  TO  THE MASTER SETTLEMENT AGREEMENT ENTERED INTO
  8        BETWEEN TOBACCO PRODUCT MANUFACTURERS AND THE  STATE  OF  IDAHO,  AND  ANY
  9        OTHER MONEYS THAT MAY BE APPROPRIATED OR OTHERWISE DIRECTED TO THE FUND BY
 10        THE  LEGISLATURE,  INCLUDING OTHER MONEYS OR ASSETS THAT THE FUND RECEIVES
 11        BY BEQUEST OR PRIVATE DONATION, TO PROVIDE THAT SUCH MONEYS  SHALL  REMAIN
 12        INVIOLATE  AND INTACT EXCEPT THAT EACH YEAR THE STATE TREASURER SHALL DIS-
 13        TRIBUTE FIVE PERCENT OF THE PERMANENT  ENDOWMENT  FUND'S  AVERAGE  MONTHLY
 14        FAIR MARKET VALUE FOR THE FIRST TWELVE MONTHS OF THE PRECEDING TWENTY-FOUR
 15        MONTHS TO THE IDAHO MILLENNIUM INCOME FUND, TO PROVIDE THAT SUCH DISTRIBU-
 16        TION  SHALL NOT EXCEED THE PERMANENT ENDOWMENT FUND'S FAIR MARKET VALUE ON
 17        THE FIRST BUSINESS DAY OF JULY, TO CREATE AN IDAHO MILLENNIUM INCOME  FUND
 18        SUBJECT  TO  APPROPRIATION  AS PROVIDED BY LAW, TO PROVIDE THAT THE INCOME
 19        FUND SHALL CONSIST OF THE DISTRIBUTION FROM THE IDAHO MILLENNIUM PERMANENT
 20        ENDOWMENT FUND AND OTHER MONEYS THAT  MAY  BE  APPROPRIATED  OR  OTHERWISE
 21        DIRECTED  TO  THE  FUND  AS PROVIDED BY LAW, TO PROVIDE THAT THE REMAINING
 22        TWENTY PERCENT OF THE MONEYS RECEIVED BY THE STATE OF IDAHO ON  AND  AFTER
 23        JANUARY  1, 2007, PURSUANT TO THE MASTER SETTLEMENT AGREEMENT ENTERED INTO
 24        BETWEEN TOBACCO PRODUCT MANUFACTURERS AND THE STATE OF IDAHO AND THE EARN-
 25        INGS THEREON, SHALL BE DEPOSITED TO THE IDAHO MILLENNIUM FUND, TO  PROVIDE
 26        THAT  THE  MILLENNIUM  FUND  MAY  CONSIST  OF ANY OTHER MONEYS THAT MAY BE
 27        APPROPRIATED OR OTHERWISE DIRECTED TO THE FUND BY THE LEGISLATURE, INCLUD-
 28        ING OTHER MONEYS OR ASSETS THAT THE FUND RECEIVES BY  BEQUEST  OR  PRIVATE
 29        DONATION,  TO  PROVIDE THAT MONEYS IN THE MILLENNIUM FUND SHALL BE ALLOWED
 30        TO ACCUMULATE, BUT SHALL NOT EXCEED A MAXIMUM LIMIT AS DETERMINED BY  LAW,
 31        TO  PROVIDE  THAT ANY AMOUNTS SO ACCUMULATING IN THE IDAHO MILLENNIUM FUND
 32        WHICH EXCEED THE MAXIMUM LIMIT, SHALL BE TRANSFERRED, NO LESS THAN ONCE  A
 33        YEAR, TO THE IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND AND TO PROVIDE THAT
 34        SUCH  MONEYS  AND  EARNINGS SO TRANSFERRED TO THE PERMANENT ENDOWMENT FUND
 35        SHALL ALSO REMAIN INVIOLATE AND INTACT; STATING THE QUESTION TO BE SUBMIT-
 36        TED TO THE ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL  TO  PREPARE  THE
 37        STATEMENTS  REQUIRED  BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUB-
 38        LISH THE AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
                                                                        
 39    Be It Resolved by the Legislature of the State of Idaho:
                                                                        
 40        SECTION 1.  That Article VII of the Constitution of the State of Idaho  be
 41    amended  by  the addition of a NEW SECTION, to be known and designated at Sec-
 42    tion 18, Article VII of the Constitution of the State of Idaho and to  read as
 43    follows:
                                                                        
                                           2
                                                                        
  1             SECTION 18.  IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND --  IDAHO
  2        MILLENNIUM INCOME FUND -- IDAHO MILLENNIUM FUND. There is hereby cre-
  3        ated  in  the  state treasury an Idaho Millennium Permanent Endowment
  4        Fund. The fund shall consist of eighty percent of the moneys received
  5        each year by the state of Idaho on and after January 1, 2007,  pursu-
  6        ant  to  the master settlement agreement entered into between tobacco
  7        product manufacturers and the state of Idaho, and  any  other  moneys
  8        that  may  be  appropriated  or otherwise directed to the fund by the
  9        legislature, including other moneys or assets that the fund  receives
 10        by  bequest  or  private  donation.  The moneys received annually for
 11        deposit to the fund, including earnings, shall forever remain  invio-
 12        late  and  intact.  No  portion of the permanent endowment fund shall
 13        ever be transferred to any other  fund,  or  used,  or  appropriated,
 14        except  as  follows:  each year, the state treasurer shall distribute
 15        five percent of the permanent endowment fund's average  monthly  fair
 16        market value for the first twelve months of the preceding twenty-four
 17        months,  to the Idaho Millennium Income Fund, and provided, that such
 18        distribution shall not exceed the  permanent  endowment  fund's  fair
 19        market value on the first business day of July.
 20             The Idaho Millennium Income Fund, which is hereby created in the
 21        state  treasury,  is subject to appropriation as provided by law, and
 22        shall consist of the distribution from the Idaho Millennium Permanent
 23        Endowment Fund and other moneys that may be appropriated or otherwise
 24        directed to the fund as provided by law.
 25             The remaining twenty percent of the moneys received by the state
 26        of Idaho on and after January 1, 2007, pursuant to the master settle-
 27        ment agreement entered into between tobacco product manufacturers and
 28        the state of Idaho and the earnings thereon, shall  be  deposited  to
 29        the  Idaho  Millennium Fund. The fund may consist of any other moneys
 30        that may be appropriated or otherwise directed to  the  fund  by  the
 31        legislature,  including other moneys or assets that the fund receives
 32        by bequest or private donation. Moneys in the fund shall  be  allowed
 33        to  accumulate, but shall not exceed a maximum limit as determined by
 34        law. Any amounts so accumulating in the Idaho Millennium  Fund  which
 35        exceed  the  maximum limit, shall be transferred, no less than once a
 36        year, to the Idaho Millennium  Permanent  Endowment  Fund,  and  such
 37        moneys and earnings in the permanent endowment fund shall also remain
 38        inviolate and intact.
                                                                        
 39        SECTION  2.  The  question to be submitted to the electors of the State of
 40    Idaho at the next general election shall be as follows:
 41        "Shall the Constitution of the State of Idaho be amended by  the  addition
 42    of  a  new  Section  18, Article VII,  to create an Idaho Millennium Permanent
 43    Endowment Fund to consist of eighty percent of the moneys received  each  year
 44    by  the  state  of  Idaho on and after January 1, 2007, pursuant to the Master
 45    Settlement Agreement entered into between tobacco  product  manufacturers  and
 46    the state of Idaho, and any other moneys that may be appropriated or otherwise
 47    directed  to the Idaho Millennium Permanent Endowment Fund by the legislature,
 48    including other moneys or assets that the Idaho Millennium Permanent Endowment
 49    Fund receives by bequest or private donation,  to  provide  that  such  moneys
 50    shall  remain  inviolate and intact except that the state treasurer shall dis-
 51    tribute five percent of the Idaho Millennium Permanent Endowment Fund's  aver-
 52    age  monthly  fair  market  value for the first twelve months of the preceding
 53    twenty-four months to the Idaho Millennium Income Fund, to provide  that  such
 54    distribution  shall not exceed the Idaho Millennium Permanent Endowment Fund's
                                                                        
                                           3
                                                                        
  1    fair market value on the first business  day  of  July;  to  create  an  Idaho
  2    Millennium  Income  Fund, subject to appropriation as provided by law, to con-
  3    sist of the distribution from the Idaho Millennium  Permanent  Endowment  Fund
  4    and  other  moneys that may be appropriated or otherwise directed to the Idaho
  5    Millennium Income Fund as provided by law; and to provide that  the  remaining
  6    twenty percent of the moneys received by the state of Idaho on and after Janu-
  7    ary  1, 2007, pursuant to the Master Settlement Agreement entered into between
  8    tobacco product manufacturers and the state of Idaho and the earnings thereon,
  9    shall be deposited to the Idaho Millennium Fund, to  provide  that  the  Idaho
 10    Millennium  Fund  may  consist of any other moneys that may be appropriated or
 11    otherwise directed to the Idaho Millennium Fund by the legislature,  including
 12    other  moneys  or assets that the Idaho Millennium Fund receives by bequest or
 13    private donation, to provide that moneys in the Idaho Millennium Fund shall be
 14    allowed to accumulate, but shall not exceed a maximum limit as  determined  by
 15    law,  to provide that any amounts so accumulating in the Idaho Millennium Fund
 16    which exceed the maximum limit, shall be transferred,  no  less  than  once  a
 17    year,  to  the  Idaho  Millennium Permanent Endowment Fund and to provide that
 18    such moneys and earnings in the permanent endowment  fund  shall  also  remain
 19    inviolate and intact?".
                                                                        
 20        SECTION  3.  The Legislative Council is directed to prepare the statements
 21    required by Section 67-453, Idaho Code, and file the same.
                                                                        
 22        SECTION 4.  The Secretary of State is hereby directed to publish this pro-
 23    posed constitutional amendment and arguments as required by law.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 16071
                                
This joint resolution proposes a constitutional amendment to create
the Idaho Millennium Permanent Endowment Fund. The fund will receive
80% of all future tobacco settlement payments to Idaho. A
constitutional amendment is the only method to create an endowment
fund that is not subject to appropriation.

Currently, the tobacco settlements are deposited into the statutorily
created Idaho Millennium Fund. In the future, the Idaho Millennium
Fund will receive 20% of tobacco settlement payments to the state.
The Legislature would set a statutory cap on the fund balance, and
once that cap was met future settlement payments and earnings thereon
would transfer back to the Permanent Endowment Fund.

The current mechanism to annually distribute 5% of the increase in
market value over a twelve month period to the Millennium Income Fund
would apply to both the Idaho Millennium Permanent Endowment Fund and
the Idaho Millennium Fund. The funds in the Income Fund would be
subject to appropriation for projects approved by the Millennium Fund
Committee.


                         FISCAL IMPACT
                                
The fiscal impact to place this proposed constitutional amendment on
the ballot will be $50,000 from the General Fund.




Contact
Name:  Senators Patti            Representatives Dennis
       Anne Lodge, Denton        Lake, Jim Clark,
       Darrington, Dean          Janice McGeachin,
       Cameron, Elliot           Margaret Henbest, John
       Werk, Kate Kelly          Rusche
Phone: (208) 332 1000


STATEMENT OF PURPOSE/FISCAL NOTE                             SJR 107