1998 Legislation
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HOUSE JOINT MEMORIAL NO. 9 – Admissions Bill, amend requested


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HJM009.....................................................by STATE AFFAIRS
ADMISSIONS BILL - Requesting that Congress amend the Idaho Admission Bill
to provide a reference to the Public School Permanent Endowment Fund, to
provide that proceeds from the sale of school lands may be deposited into a
Land Bank Fund to be used to purchase other lands, to provide that earnings
on the money in the Land Bank Fund shall be deposited into an Earnings
Reserve Fund and distributed in the support of the public schools of the
state of Idaho and to require that leases of school lands shall secure the
maximum long-term financial return.

02/09    House intro - 1st rdg - to printing
02/10    Rpt prt - to St Aff
02/20    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/25    3rd rdg - ADOPTED - 64-6-0
      AYES -- Alltus, Barraclough, Bell, Bieter, Bivens, Black(15),
      Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
      Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Gagner, Geddes,
      Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9),
      Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander,
      Kunz, Lake, Linford, Mader, Marley, McKague, Meyer, Miller,
      Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger,
      Robison, Schaefer, Stevenson, Stone, Stubbs, Taylor, Tilman, Tippets,
      Trail, Watson, Wheeler, Zimmermann, Mr Speaker
      NAYS -- Barrett, Field(20), Loertscher, Sali, Stoicheff, Wood
      Absent and excused -- None
    Floor Sponsor - Deal
    Title apvd - to Senate
02/26    Senate intro - 1st rdg - to St Aff
03/11    Rpt out - rec d/p - to 10th Ord
03/17    10th Ord - ADOPTED - 31-3-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Sorensen, Sweeney, Thorne, Twiggs,
      NAYS--Schroeder, Stennett, Whitworth
      Absent and excused--Hansen
    Floor Sponsor - Danielson, Andreason
    Title apvd - to House
03/18    To enrol
03/18    Rpt enrol - Sp signed
03/19    Pres signed - to Secretary of State

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998

                             IN THE HOUSE OF REPRESENTATIVES

                                HOUSE JOINT MEMORIAL NO. 9

                                BY STATE AFFAIRS COMMITTEE

 1                                   A JOINT MEMORIAL

 5        We, your Memorialists, the House of Representatives and the Senate of  the
 6    State  of  Idaho  assembled  in the Second Regular Session of the Fifty-fourth
 7    Idaho Legislature, do hereby respectfully represent that:

 8        WHEREAS, Idaho was admitted to the Union on July 3, 1890; and
 9        WHEREAS, the Idaho Admission Bill, 26 Stat. L. 215, ch. 656, provides that
10    the Congress would grant certain lands to the state for the support of  public
11    schools and did grant those lands; and
12        WHEREAS, Section 5 of the Idaho Admission Bill, 26, Stat. L. 215, ch. 656,
13    requires  that  the  proceeds  from the sale of those lands shall constitute a
14    permanent school fund, only the interest of which can be used to support  pub-
15    lic schools; and
16        WHEREAS,  the  restrictions on the use of proceeds and interest are incon-
17    sistent with modern concepts of prudent investment; and
18        WHEREAS, the restrictions can be modified to reflect modern business prac-
19    tices without undue risk to the state or the beneficiaries of the funds.
20        NOW, THEREFORE, BE IT RESOLVED by the members of the Second  Regular  Ses-
21    sion  of  the Fifty-fourth Idaho Legislature, the House of Representatives and
22    the Senate concurring therein, that the Congress expeditiously amend the Idaho
23    Admissions Bill, 26 Stat. L. 215, ch. 656, as follows:

24        SECTION 5.  SALE OR LEASE OF SCHOOL LANDS. (a) Except as provided in  sub-
25    section  (b)  all lands herein granted for educational purposes shall be 
26    disposed of   sold  only at public sale, the proceeds to con-
27    stitute a  permanent   public   school    permanent
28    endowment    fund ,  .  Proceeds from the sale of school
29    lands may be deposited into a land bank fund to be used to acquire other lands
30    in the state for the benefit of the endowment beneficiaries, under  such  laws
31    as  may  be  prescribed  by the legislature. If the land sale proceeds are not
32    used to acquire other lands in the state within a time provided by the  legis-
33    lature,  the proceeds and any earnings on the proceeds shall be deposited into
34    the public school permanent endowment fund.  T   t  he  
35    interest      earnings   of  which only   the
36    public school permanent endowment fund  shall be  deposited into an
37    earnings reserve fund and distributed   expended  in the sup-
38    port of  said   public  schools  of  the  state  in
39    the  manner prescribed by law . Such lands may, under such  regula-
40    tions     laws    as  the  legislature  shall  prescribe,  be
41    leased  ,   for periods of not more than ten years, and in the
42    case of an oil, gas, or other hydrocarbon lease or a geothermal  resource  and
43    associated  byproducts  lease,  for as long thereafter as such product is pro-


 1    duced in paying quantities or the lessee in  good  faith  is  conducting  well
 2    drilling  or  construction  operations      provided any such lease
 3    secures the maximum long-term financial return , and  such  lands  shall
 4    not  be  subject  to preemption, homestead entry, or any other entry under the
 5    land laws of the United States, whether surveyed or unsurveyed, but  shall  be
 6    reserved for school purposes only.
 7        (b)  Such  lands may be exchanged for other lands, public or private.  The
 8    values of such lands so exchanged shall be approximately equal or, if they are
 9    not approximately equal, they shall be equalized by the payment  of  money  by
10    the  appropriate  party.   If  any  such  lands  are exchanged with the United
11    States, such exchange shall be limited to Federal lands within the State  that
12    are  subject  to  exchange under the laws governing the administration of such
13    lands.  All such exchanges heretofore made with the United States  are  hereby
14    approved.

15        BE  IT  FURTHER  RESOLVED that the Chief Clerk of the House of Representa-
16    tives be, and she is hereby authorized and directed to forward a copy of  this
17    Memorial to the President of the Senate and the Speaker of the House of Repre-
18    sentatives  of  Congress,  and  the  congressional delegation representing the
19    State of Idaho in the Congress of the United States.

Statement of Purpose / Fiscal Impact


                               STATEMENT OF PURPOSE
                                     RS 07946
    This legislation is recommended by the Legislative Council Interim Committee on Endowment 
    Fund Investment Reform. This legislation is a joint memorial to the Senate and House of 
    Representatives of the United States Congress and to the Congressional Delegation representing the 
    State of Idaho. The legislation requests an amendment to Section 5 of the Idaho Admission Bill.
    The Idaho Admission Bill is the document by which Idaho entered the United States in 1890. 
    At that time, the federal government granted to Idaho certain lands known as endowment lands. The 
    largest endowment is to be used to benefit public schools. Section 5 of the Idaho Admission Bill 
    addresses the sale or lease of school lands.
    The Idaho Admission Bill uses ambiguous language that creates confusion for Idaho 
    citizens and the courts. Its restrictions on the use of moneys do not comport with modern concepts 
    of safe but flexible asset management.
    The requested amendment changes Section 5 in several ways, all of which are intended to 
    provide greater return to Idaho's public schools. Public schools are the sole beneficiaries of the 
    endowment addressed in Section 5. The amendment makes consistent a reference to the Public School 
    Permanent Endowment Fund. It clarifies ambiguous language by changing the phrase "disposed of" to 
    "sold" when used in reference to school lands. The amendment provides for the operation of a Land 
    Bank Fund. Currently, proceeds from the sale of endowment lands must be deposited directly into a 
    permanent fund, of which only the interest can used. The Land Bank Fund would constitute a temporary 
    holding area for land sale proceeds so those moneys could be used to buy other lands for public schools. 
    The fund would make it much easier for the state to buy land that would provide a greater benefit for the 
    beneficiaries. The amendment provides that earnings on the money in the Land Bank Fund to be 
    deposited into an Earnings Reserve Fund and distributed in the support of public schools. The amendment 
    also would specify that leases of school lands shall secure the maximum long-term financial return.
                                    FISCAL NOTE
    These changes to the Idaho Admission Bill will not increase the financial impact on the General 
    Fund or on local government. The changes, however, are expected to result in additional revenue to the 
    endowment beneficiaries by providing greater management flexibility consistent
                         with modern business practices.
                                 Representative William W. "Bill" Deal    Senator Judi Danielson   Michael McConnell
                                 House of Representatives    Senate  Legislative Services
                                 (208) 332-1000       (208) 332-1000 (208) 334-2475