2000 Legislation
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HOUSE BILL NO. 436 – Endowment Fund Bd, mtgs, manager

HOUSE BILL NO. 436

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H0436......................................................by STATE AFFAIRS
ENDOWMENT FUND INVESTMENT BOARD - Amends existing law to provide that
meetings of the Endowment Fund Investment Board shall be held at least
quarterly; to delete the requirement that meetings must be held in the
state capitol; to provide that the Endowment Fund Investment Board shall
contract with or employ a manager of investments; to provide duties of the
manager of investments; and to provide powers and duties of the manager of
investments and portfolio manager.
                                                                        
01/25    House intro - 1st rdg - to printing
01/26    Rpt prt - to Agric Aff
02/04    Rpt out - rec d/p - to 2nd rdg
02/07    2nd rdg - to 3rd rdg
02/08    3rd rdg - PASSED - 66-1-3
      AYES -- Barraclough, Barrett, Bell, Bieter, Black, Boe, Bruneel,
      Callister, Campbell, Chase, Cheirrett, Clark, Cuddy, Deal, Denney,
      Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
      Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jones, Judd,
      Kellogg, Kempton, Kendell, Lake, Linford, Loertscher, Mader, Marley,
      McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner,
      Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
      Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman,
      Trail(Miller), Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- Jaquet
      Absent and excused -- Alltus, Crow, Kunz
    Floor Sponsor - Deal
    Title apvd - to Senate
02/09    Senate intro - 1st rdg - to St Aff
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
      Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Danielson
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/27    Pres signed
    To Governor
03/29    Governor signed
         Session Law Chapter 65
         Effective: 07/01/00

Bill Text


 H0436
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 436
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE ENDOWMENT FUND  INVESTMENT  BOARD;  AMENDING  SECTION  57-719,
  3        IDAHO  CODE, TO PROVIDE THAT MEETINGS SHALL BE HELD AT LEAST QUARTERLY AND
  4        TO DELETE THE REQUIREMENT THAT MEETINGS MUST BE HELD IN THE STATE CAPITOL;
  5        AMENDING SECTION 57-721, IDAHO CODE, AS AMENDED  BY  SECTION  37,  CHAPTER
  6        256,  LAWS  OF  1998,  TO PROVIDE THAT THE ENDOWMENT FUND INVESTMENT BOARD
  7        SHALL CONTRACT WITH OR EMPLOY A MANAGER  OF  INVESTMENTS  AND  TO  PROVIDE
  8        DUTIES OF THE MANAGER OF INVESTMENTS; AMENDING SECTION 57-727, IDAHO CODE,
  9        TO  PROVIDE  POWERS AND DUTIES OF THE MANAGER OF INVESTMENTS AND PORTFOLIO
 10        MANAGERS; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  That Section 57-719, Idaho Code, be, and the  same  is  hereby
 13    amended to read as follows:
                                                                        
 14        57-719.  BOARD  --  APPOINTMENT OF MEMBERS -- TERM -- REMOVAL -- VACANCIES
 15    -- ORGANIZATION -- QUORUM -- MEETINGS --  COMPENSATION.  The  members  of  the
 16    board  appointed by the governor shall serve for terms of four (4) years, pro-
 17    vided that for the first term the governor shall appoint three (3) members who
 18    shall serve for a term of two (2) years, two (2) members who shall serve for a
 19    term of three (3) years, and two (2) members who shall serve  for  a  term  of
 20    four  (4)  years. Members of the board shall serve until their successors have
 21    been selected and qualified.
 22        A member of the board appointed by the governor shall not hold an  office,
 23    position, or employment in a political party, with the exception of those mem-
 24    bers from the house of representatives and the senate. An appointed member may
 25    be  removed  from  the  board for cause by a two-thirds (2/3) vote of the full
 26    board.
 27        A vacancy in the appointive membership of the board during a term  thereof
 28    shall be filled by appointment by the governor for the unexpired term.
 29        There  shall  be a chairman of the board elected by a majority of the mem-
 30    bers of the board. A majority of the members of the board shall  constitute  a
 31    quorum for the transaction of business.
 32        The  meetings  of  the board shall be held at least quarterly at the state
 33    capitol in Boise and at other times upon the call of the chairman or a  major-
 34    ity  of  the board. The board members appointed hereunder shall be compensated
 35    as provided by section 59-509(h), Idaho Code, for attending  meetings  of  the
 36    board.
                                                                        
 37        SECTION  2.  That  Section  57-721,  Idaho Code, as amended by Section 37,
 38    Chapter 256, Laws of 1998, be, and the same is hereby amended to read as  fol-
 39    lows:
                                                                        
 40        57-721.  MANAGEMENT  OF PERMANENT ENDOWMENT FUNDS BY INVESTMENT MANAGER(S)
 41    MANAGER OF INVESTMENTS -- APPOINTMENT  OF  CUSTODIAN  OF  PERMANENT  ENDOWMENT
                                                                        
                                           2
                                                                        
  1    FUNDS. The investment board shall select and contract with or employ a minimum
  2    of  one  (1) investment manager(s) manager of investments to manage the perma-
  3    nent  endowment  funds  and  the  earnings  reserve  funds.  Such   investment
  4    manager(s)  so  selected  The  manager  of investments who is employed or con-
  5    tracted with shall, subject to the direction of the  investment  board,  exert
  6    control  over the funds as though the investment manager(s) manager of invest-
  7    ments were the owner thereof.
  8        The investment board may select and contract with a  minimum  of  one  (1)
  9    bank or trust company to act as custodian of endowment fund assets and provide
 10    safekeeping thereof.
                                                                        
 11        SECTION  3.  That  Section  57-727, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        57-727.   STAFF INVESTMENT MANAGER OF INVESTMENTS -- STAFF -- LEGAL ADVIS-
 14    ORS. (1) With the approval of two-thirds (2/3) of the members of the board,  a
 15    staff  investment  manager  of  investments  and  assistant  staff  investment
 16    manager(s)  other  portfolio  managers  may be employed or contracted with who
 17    shall perform such managerial  activities  and  functions  as  the  board  may
 18    direct.  The  staff  investment  manager  of  investments  and assistant staff
 19    investment manager(s) portfolio managers shall serve at the  pleasure  of  the
 20    board  in  nonclassified  positions,  if such persons are employees. The staff
 21    investment manager of investments and assistant  staff  investment  manager(s)
 22    shall portfolio managers may either be employed by the board or serve pursuant
 23    to  contract.  The  salary  or compensation of the staff investment manager of
 24    investments and assistant staff investment manager(s) portfolio managers shall
 25    be set by the board, subject to approval of the governor,  and  be  paid  from
 26    appropriations  made therefor. The staff investment manager of investments and
 27    assistant staff investment manager(s) portfolio managers shall be bonded in an
 28    amount established by the board if these persons are employees. If these func-
 29    tions are performed pursuant to contract, the contract shall contain a  clause
 30    to provide for bonding of the contractor's personnel.
 31        (2)  The  board  may  authorize  the employment of whatever staff it deems
 32    necessary for the administration of the board's business. The staff investment
 33    manager shall of investments may hire  such  authorized  additional  portfolio
 34    managers  and  other necessary staff who shall hold their respective positions
 35    subject to the rules of the administrator of the division of  human  resources
 36    promulgated  pursuant to chapter 52, title 67, Idaho Code. The salaries of all
 37    staff members shall be paid from appropriations made therefor.
 38        (3)  The director of the department of finance shall have  access  to  any
 39    and  all  books  and  records  maintained  by  the staff investment manager of
 40    investments and his staff as the board may deem necessary.
 41        (4)  The board shall be furnished adequate and qualified legal advisors by
 42    the attorney general's office.
 43        (5)  All current expenses, capital outlay, and travel  expenses  shall  be
 44    paid from appropriations made therefor.
 45        (6)  The  board shall, upon request of the agency involved, furnish advice
 46    to the treasurer, the manager of the state  insurance  fund,  and  the  public
 47    employees  retirement  board,  and  the board may, upon request of the agency,
 48    invest funds of the requesting agency.
                                                                        
 49        SECTION 4.  This act shall be in full force and effect on and  after  July
 50    1, 2000.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                            RS 09531 

Relating to the Endowment Fund Investment Board. Amending I. C. 
57-719 to provide that meetings shall be held at least quarterly 
and to delete the requirement that meetings must be held in the 
State Capitol building. Also to amend I. C. 57-721, to allow for 
the contracting or employment of a Manager of Investments and to 
provide duties of the manager of Investments.  Amendment to IC 
57-727 to provide powers and duties of the Manger of Investments 
and portfolio manager.

                          FISCAL IMPACT 

Contact:
Name: Representative Bill Deal
Phone: (208) 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                          H 436