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S1296............................................................by FINANCE
IDAHO MILLENNIUM FUND - Adds to existing law to create the Idaho Millennium
Fund and the Idaho Millennium Income Fund; and to provide that the Tobacco
Settlement moneys be placed in the funds.
01/21 Senate intro - 1st rdg - to printing
01/24 Rpt prt - to Fin
01/25 Rpt out - to 2nd rdg
01/26 2nd rdg - to 3rd rdg
01/27 3rd rdg - PASSED - 28-4-3
AYES--Boatright, Bunderson, Burtenshaw, Cameron, Crow, Danielson,
Darrington, Davis, Deide, Frasure, Geddes, Hawkins, Ingram, Keough,
King-Barrutia, Lee, McLaughlin, Parry, Richardson, Riggs, Risch,
Sandy, Schroeder, Sorensen, Stegner, Thorne, Vacant, Wheeler
NAYS--Dunklin, Noh, Stennett, Whitworth
Absent and excused--Andreason, Branch, Ipsen
Floor Sponsor - Parry
Title apvd - to House
01/28 House intro - 1st rdg - to 2nd rdg
01/31 2nd rdg - to 3rd rdg
02/02 3rd rdg - PASSED - 56-12-2
AYES -- Alltus, Barraclough, Barrett, Bell, Black, Bruneel,
Callister, Campbell, Cheirrett, Clark, Crow, Deal, Denney, Ellsworth,
Field(13), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Hornbeck, Jones, Judd, Kellogg, Kempton, Kendell, Kunz,
Lake, Linford, Loertscher, Mader, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds,
Ridinger, Schaefer, Sellman, Smith, Smylie, Stevenson, Stone, Taylor,
Tilman, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Bieter, Boe, Chase, Cuddy, Henbest, Jaquet, Marley, Ringo,
Robison, Sali, Shepherd, Stoicheff
Absent and excused -- Field(20), Trail
Floor Sponsor - Geddes
Title apvd - to Senate
02/03 To enrol
02/04 Rpt enrol - Pres signed
02/07 Sp signed
02/08 To Governor
02/14 Governor signed
Session Law Chapter 1
Effective: 02/14/00
S1296
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1296
BY FINANCE COMMITTEE
1 AN ACT
2 RELATING TO THE DISPOSITION OF TOBACCO SETTLEMENT FUNDS; AMENDING TITLE 67,
3 IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 18, TITLE 67, IDAHO CODE, TO
4 CREATE THE IDAHO MILLENNIUM FUND AND TO DIRECT THE STATE TREASURER TO
5 INVEST MONEYS IN THE IDAHO MILLENNIUM FUND, TO CREATE THE IDAHO MILLENNIUM
6 INCOME FUND AND TO DIRECT THE STATE TREASURER TO INVEST MONEYS IN THE
7 IDAHO MILLENNIUM INCOME FUND AND TO PROVIDE FOR THE DISTRIBUTION OF MONEY
8 FROM THE IDAHO MILLENNIUM FUND TO THE IDAHO MILLENNIUM INCOME FUND; TRANS-
9 FERRING TOBACCO SETTLEMENT FUNDS FROM THE BUDGET STABILIZATION FUND TO THE
10 IDAHO MILLENNIUM FUND; AND DECLARING AN EMERGENCY.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Title 67, Idaho Code, be, and the same is hereby amended
13 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
14 ter 18, Title 67, Idaho Code, and to read as follows:
15 CHAPTER 18
16 IDAHO MILLENNIUM FUND
17 67-1801. IDAHO MILLENNIUM FUND. There is hereby created in the state
18 treasury the "Idaho Millennium Fund." The fund shall consist of all moneys
19 distributed to the state pursuant to the master settlement agreement entered
20 into between tobacco product manufacturers and various states, including
21 Idaho, and such moneys as may be provided by legislative appropriations. Money
22 in the fund is not subject to appropriation or distribution, except as pro-
23 vided in sections 67-1802 and 67-1803, Idaho Code. Fund assets shall be
24 invested by the state treasurer according to the standards of the Idaho uni-
25 form prudent investor act, chapter 5, title 68, Idaho Code, and the state
26 treasurer is hereby granted the authority to invest the assets of the Idaho
27 millennium fund in any investment instruments authorized by the standards of
28 the Idaho uniform prudent investor act.
29 67-1802. IDAHO MILLENNIUM INCOME FUND. There is hereby created in the
30 state treasury the "Idaho Millennium Income Fund." The fund shall consist of
31 distributions from the Idaho millennium fund and such moneys that may be pro-
32 vided by legislative appropriations. The Idaho millennium income fund shall be
33 managed by the state treasurer and shall retain its own earnings. The uses of
34 this fund shall be determined by legislative appropriation, provided that such
35 appropriations may only be granted on a one-time basis through June 30, 2004,
36 excepting any appropriations to pay the administrative costs of managing the
37 Idaho millennium fund and the Idaho millennium income fund.
38 67-1803. DISTRIBUTION OF FUNDS. On the first business day of each month,
39 the state treasurer shall distribute one-twelfth (1/12) of five percent (5%)
40 of the Idaho millennium fund's fair market value to the Idaho millennium
2
1 income fund.
2 SECTION 2. The State Controller shall transfer the principal amount of
3 all tobacco settlement funds received to date by the state of Idaho from the
4 Budget Stabilization Fund to the Idaho Millennium Fund.
5 SECTION 3. An emergency existing therefor, which emergency is hereby
6 declared to exist, this act shall be in full force and effect on and after its
7 passage and approval.
STATEMENT OF PURPOSE
RS 09539Cl
The purpose of this legislation is to establish the Idaho
Millennium Fund as an endowment fund structure to receive,
invest, and disburse funds that the State of Idaho is receiving
as a result of the master settlement agreement reached with
tobacco companies. This legislation preserves the long-term
capital value of these funds through a 5% annual distribution
rule, ensuring that thestate will never be left short of funds
if future tobacco settlement payments, for unforeseen reasons,
cease to be paid. The investing of this fund will be managed by
the State Treasurer, who is the constitutional officer charged
with the responsibility of managing state funds. The purpose of
this legislation is not to define the program beneficiaries of
this fund in Idaho Code. Programs funded by distributions from
the Idaho Millennium Fund are to be determined through the normal
legislative appropriations process.
FISCAL NOTE
There is no fiscal impact on the General Fund. This legislation
transfers $16.8 million in tobacco settlements from the Budget
Stabilization Fund to a new Millennium Fund. However, this RS
does impact the Permanent Building Fund (PBF) because interest
earnings from the Budget Stabilization Fund currently go to the
PBF. Assuming this legislation becomes law by March I and assuming
the State receives another $14 million in settlement receipts in
April, there would be about $400,000 available for appropriation to
programs in FY 2000. Assuming $12.5 million settlement receipts
in January and again in April of 2001, and assuming an 8% return on
the investment of the Millennium Fund, another $2 million would be
available for appropriation in FY 2001. After 20 years, the amount
available forannual appropriation will have grown to about $40 million
per year.
Contact: Senator Atwell J. Parry
332-1000
Representative Robert C. Geddes
332-1000
Statement of Purpose/Fiscal Note S 1296