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H0767......................................................by STATE AFFAIRS
COLLEGE AND UNIVERSITY ENDOWMENT FUNDS - Amends existing law relating to
college and university endowment funds to provide that the funds may be
expended without a legislative appropriation; and to include a portion of
endowment land inadvertently not included in the redrafting of the
endowment statutes.
03/22 House intro - 1st rdg - to printing
03/23 Rpt prt - to St Aff
03/28 Rpt out - rec d/p - to 2nd rdg
03/29 2nd rdg - to 3rd rdg
Rules susp - PASSED - 64-3-3
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kempton, Kendell, Kunz, Linford, Loertscher, Mader,
Marley, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Schaefer, Sellman,
Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman,
Trail, Wheeler, Zimmermann, Mr Speaker
NAYS -- Barrett, Sali, Wood
Absent and excused -- Kellogg, Lake, McKague
Floor Sponsor - Deal
Title apvd - to Senate
03/30 Senate intro - 1st rdg - to St Aff
H0767
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 767
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO ENDOWMENT FUNDS; AMENDING SECTION 33-2909, IDAHO CODE, TO CLARIFY
3 THE NUMBER OF SECTIONS GRANTED TO IDAHO BY CONGRESS AND PURSUANT TO THE
4 IDAHO ADMISSION BILL AND TO PROVIDE THAT THE UNIVERSITY PERMANENT ENDOW-
5 MENT FUND SHALL CONSIST OF PROCEEDS FROM THE SALE OF ADDITIONAL ENDOWMENT
6 LANDS GRANTED TO THE STATE OF IDAHO BY THE UNITED STATES GOVERNMENT FOR
7 THE SUPPORT AND MAINTENANCE OF THE STATE UNIVERSITY AND THOSE GRANTED IN
8 LIEU OF SUCH LANDS; AMENDING SECTION 33-2910, IDAHO CODE, TO DELETE THE
9 REQUIREMENT THAT MONEYS IN THE UNIVERSITY INCOME FUND MUST BE EXPENDED
10 PURSUANT TO APPROPRIATION; AMENDING SECTION 33-2912, IDAHO CODE, TO DELETE
11 THE REQUIREMENT THAT MONEYS IN THE SCIENTIFIC SCHOOL INCOME FUND MUST BE
12 EXPENDED PURSUANT TO LEGISLATIVE APPROPRIATION; AMENDING SECTION 33-2914,
13 IDAHO CODE, TO DELETE THE REQUIREMENT THAT MONEYS IN THE AGRICULTURAL COL-
14 LEGE INCOME FUND MUST BE EXPENDED PURSUANT TO LEGISLATIVE APPROPRIATION;
15 AND AMENDING SECTION 33-3301B, IDAHO CODE, TO DELETE THE REQUIREMENT THAT
16 MONEYS IN THE NORMAL SCHOOL FUND MUST BE EXPENDED PURSUANT TO LEGISLATIVE
17 APPROPRIATION.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Section 33-2909, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 33-2909. UNIVERSITY PERMANENT ENDOWMENT FUND. (1) There is established in
22 the state treasury the university permanent endowment fund. This fund is per-
23 petually appropriated for the beneficiaries of the endowment. The fund shall
24 be managed and invested by the endowment fund investment board according to
25 law and the policies established by the state board of land commissioners. The
26 fund principal shall forever remain intact. The fund shall be a permanent fund
27 and shall consist of the following:
28 (a) Proceeds from the sale of any lands granted to the state of Idaho by
29 the United States government for university purposes under the provisions
30 of the act of congress of February 18, 1881, entitled "An act to grant
31 lands to Dakota, Montana, Arizona, Idaho and Wyoming for university pur-
32 poses," as amended by the Idaho Admission Bill, 26 Stat. L. 215, ch. 656,
33 amounting to seventy-two (72) entire sections and lands granted in lieu of
34 university lands;
35 (b) Proceeds from the sale of additional endowment lands granted to the
36 state of Idaho by the United States government under the provisions of the
37 Idaho Admission Bill, 26 Stat. L. 215, ch. 656, for the support and main-
38 tenance of the state university, amounting to fifty thousand (50,000)
39 acres and those granted in lieu of such lands;
40 (c) Proceeds of royalties arising from the extraction of minerals on uni-
41 versity endowment lands owned by the state;
42 (cd) Moneys allocated from the university earnings reserve fund.
43 (2) Proceeds from the sale of university endowment lands may be first
2
1 deposited into the land bank fund established in section 58-133, Idaho Code,
2 for the benefit of endowment beneficiaries. If the proceeds from the sale of
3 land are not used to acquire other lands in accordance with section 58-133,
4 Idaho Code, the land sale proceeds shall be deposited into the university per-
5 manent endowment fund along with any earnings on the proceeds.
6 (3) Earnings from the investment of the university permanent endowment
7 fund shall be distributed according to the provisions of section 57-723A,
8 Idaho Code.
9 SECTION 2. That Section 33-2910, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 33-2910. UNIVERSITY INCOME FUND. There is established in the state trea-
12 sury the university income fund. The fund shall consist of all moneys distrib-
13 uted from the university earnings reserve fund and from other sources as the
14 legislature deems appropriate. Moneys in the university income fund shall be
15 used for the benefit of beneficiaries of the university endowment and distrib-
16 uted to current beneficiaries of the endowment. pursuant to legislative appro-
17 priation.
18 SECTION 3. That Section 33-2912, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 33-2912. SCIENTIFIC SCHOOL INCOME FUND. There is established in the state
21 treasury the scientific school income fund. The fund shall consist of all
22 moneys distributed from the scientific school earnings reserve fund and from
23 other sources as the legislature deems appropriate. Moneys in the scientific
24 school income fund shall be used for the benefit of the beneficiaries of the
25 endowment and distributed to current beneficiaries of the scientific school
26 endowment. pursuant to legislative appropriation.
27 SECTION 4. That Section 33-2914, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 33-2914. AGRICULTURAL COLLEGE INCOME FUND. There is established in the
30 state treasury the agricultural college income fund. The fund shall consist of
31 all moneys distributed from the agricultural college earnings reserve fund and
32 from other sources as the legislature deems appropriate. Moneys in the agri-
33 cultural college income fund shall be used for the benefit of the beneficia-
34 ries of the endowment and distributed to current beneficiaries of the agricul-
35 tural college endowment. pursuant to legislative appropriation.
36 SECTION 5. That Section 33-3301B, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 33-3301B. NORMAL SCHOOL INCOME FUND. There is established in the state
39 treasury the normal school income fund. The fund shall consist of all moneys
40 distributed from the normal school earnings reserve fund and from other
41 sources as the legislature deems appropriate. Moneys in the normal school
42 income fund shall be used for the benefit of the beneficiaries of the endow-
43 ment and distributed to current beneficiaries of the normal school endowment.
44 pursuant to legislative appropriation. However, not more than fifty percent
45 (50%) of earnings of the normal school income fund shall ever be appropriated
46 for the support and maintenance of either Lewis-Clark State College or the
47 department of education at Idaho State University.
STATEMENT OF PURPOSE
RS10302
This bill is designed to ensure the constitutionality of an important part of
the endowment investment reform legislation as it relates to the college and
university endowments. Under the terms of the Idaho Admission Bill the college
and university endowment income must be distributed to the boards of trustees of
the endowed beneficiary college or university outside of the appropriation
process. This bill will retain that authority.
The terms of the Idaho Admission Bill and the Constitution, as interpreted
by the Idaho Supreme Court (Black v. Board of Education, 33 Idaho 415 (1921)
and by the Idaho Attorney General's Office (opinion 76-65 and Legal Guideline
issued March 15, 2000), require this result.
This bill will not change any of the investment or management statutes. It
specifically leaves intact the Endowment Investment Board and the Land Board as
controlling the management of endowment land and endowment investments.
Finally, there is one housekeeping change (Section 33-2909) to include a
portion of endowment land inadvertently not included in the re-drafting of the
endowment statutes.
FISCAL NOTE
None.
CONTACT: Representative Deal
(208) 332-1000
STATEMENT OF PURPOSE/ FISCAL NOTE H 767