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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,
Wheeler
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
HJM009|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE JOINT MEMORIAL NO. 9 BY STATE AFFAIRS COMMITTEE 1 A JOINT MEMORIAL 2 TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES IN CONGRESS 3 ASSEMBLED, AND TO THE CONGRESSIONAL DELEGATION REPRESENTING THE STATE OF 4 IDAHO IN THE CONGRESS OF THE UNITED STATES. 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 be26disposed ofsold only at public sale, the proceeds to con- 27 stitute apermanentpublic 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. Tthe35interestearnings ofwhich onlythe 36 public school permanent endowment fund shall be deposited into an 37 earnings reserve fund and distributedexpendedin the sup- 38 port ofsaidpublic schools of the state in 39 the manner prescribed by law . Such lands may, under suchregula-40tionslaws as the legislature shall prescribe, be 41 leased ,for periods of not more than ten years, and in the42case of an oil, gas, or other hydrocarbon lease or a geothermal resource and43associated byproducts lease, for as long thereafter as such product is pro-2 1duced in paying quantities or the lessee in good faith is conducting well2drilling or construction operationsprovided 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.
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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.
CONTACTS:
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
STATEMENT OF PURPOSE/FISCAL NOTE
HJM9