1999 Legislation
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SENATE BILL NO. 1107 – Endowment fund/1998 law/effect date

SENATE BILL NO. 1107

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Daily Data Tracking History



S1107......................................................by STATE AFFAIRS
ENDOWMENT FUNDS - Amends the effective date clause of the legislation
passed in 1998 relating to the endowment lands and the duties of the
Endowment Fund Investment Board to provide the effective date of the repeal
of Section 57-722, Idaho Code, and the amendment to Section 57-723, Idaho
Code, shall be February 15, 1999; and to provide duties of the State
Controller on July 1, 2000.

02/04    Senate intro - 1st rdg - to printing
02/05    Rpt prt - to St Aff
02/11    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 26-1-8
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins,
      Keough, Lee, McLaughlin, Richardson, Riggs, Risch, Sandy, Sorensen,
      Stegner, Thorne, Twiggs, Wheeler
      NAYS--Whitworth
      Absent and excused--Danielson, Ingram, Ipsen, King, Noh, Parry,
      Schroeder, Stennett
    Floor Sponsor - Danielson
    Title apvd - to House
02/16    House intro - 1st rdg - to St Aff
02/26    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 62-4-4
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
      Ellsworth, Field(13), Field(20), Geddes, Gould, Hadley, Hammond,
      Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
      Kempton, Kendell, Kunz, Lake, Limbaugh, Linford, Mader, Marley,
      McKague, Meyer, Montgomery, Mortensen, Moyle, Pischner, Pomeroy,
      Reynolds, Ridinger, Robison, Sali, Sellman, Smith, Smylie, Stevenson,
      Stone, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Williams,
      Wood, Zimmermann
      NAYS -- Loertscher, Ringo, Schaefer, Stoicheff
      Absent and excused -- Callister, Gagner, Kellogg, Mr Speaker
    Floor Sponsor - Deal
    Title apvd - to Senate
03/04    To enrol
03/05    Rpt enrol - Pres signed
03/08    Sp signed - to Governor
03/09    Governor signed
         Session Law Chapter 48
         Effective: 02/15/99

Bill Text


S1107


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1107

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO POWERS OF THE ENDOWMENT FUND INVESTMENT  BOARD;  AMENDING  SECTION
 3        63,  CHAPTER  256,  LAWS  OF  1998,  TO PROVIDE THAT THE REPEAL OF SECTION
 4        57-722, IDAHO CODE,  AND THE AMENDMENT  TO  SECTION  57-723,  IDAHO  CODE,
 5        SHALL  BE  IN  FULL  FORCE  AND  EFFECT ON AND AFTER FEBRUARY 15, 1999, TO
 6        DELETE REDUNDANT LANGUAGE AND TO PROVIDE DUTIES OF THE STATE CONTROLLER ON
 7        JULY 1, 2000; DECLARING AN EMERGENCY AND  PROVIDING  RETROACTIVE  APPLICA-
 8        TION.

 9    Be It Enacted by the Legislature of the State of Idaho:

10        SECTION  1.  That  Section 63, Chapter 256, Laws of 1998, be, and the same
11    is hereby amended to read as follows:

12        SECTION 63.  Sections 38 and 39 of this act shall be  in  full  force
13    and  effect  on  and after  February 15, 1999, and the remaining sections of t
14     T his act shall be in full force and  effect  on  and  after
15    July  1,  2000  .    , provided the United States Congress has
16    approved amendments to Section 5 of the Idaho Admission Bill, 26 Stat. L. 215,
17    ch. 656, regarding sale or lease of school lands; and the state board of  can-
18    vassers has certified that amendments to Sections 3, 4, 8 and 11 of Article IX
19    of  the  Constitution  of  the State of Idaho have been adopted at the general
20    election of 1998 regarding funds related to the public school endowment,  dis-
21    position of school lands, and investing of permanent endowment funds.
22        Following  the successful occurrence of the foregoing events, the governor
23    shall issue a proclamation declaring that the described events  have  occurred
24    and the dates of the events, and this act shall be in full force and effect on
25    and after the date described.
26        Upon  enactment,  t  T he state controller shall transfer
27    all fund balances from  the  improvement  funds  to  the  respective  earnings
28    reserve funds  on July 1, 2000 .

29        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
30    declared to exist, this act shall be in full force and effect on and after its
31    passage and approval, and retroactively to February 15, 1999.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                            RSO8821C1

The purpose of this bill is to implement H.J.R. 8, which was passed by the electorate
at the 1998 general election. H.J.R. 8 amended Article IX  11 to permit the
investment of permanent endowment funds in any investments "a trustee is
authorized to invest [in] pursuant to state law." This bill will allow the Endowment fund
Investment Board to begin on February 15, 1999 to invest monies in the permanent
endowments funds in accordance with the Idaho uniform Prudent Investor Act,
chapter 5, title 68, Idaho Code. Last session the Idaho Legislature approved the use
of this investment standard but delayed the effective date of this change until July 1,
2000. Chapter 256, 1998 Idaho Sess. L.825-50.

The Idaho Board of Land Commissioners requests acceleration of the effective date
for this change to the Idaho uniform prudent Investor Act to permit the Endowment
Fund Investment Board to manage the endowment funds to achieve a higher rate of
return than is currently possible under Idaho Code  57-722.

This bill also deletes reference to conditions for implementation of the legislation that
have been satisfied since the enactment of Chapter 256. 1998 Idaho Sess.L.825-50





                           FISCAL NOTE

This legislation is expected to enhance the endowment revenue. No fiscal impact is
expected on the general fund.






         CONTACT:              Senator Judi Danielson 322-1347
                               Representative William W. "Bill" Deal
                               Senator Hal Bunderson
                               Dept. Attorney General Clive Strong
         


                                       STATEMENT OF PURPOSE/ FISCAL NOTE    S1107