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H0767......................................................by STATE AFFAIRS COLLEGE AND UNIVERSITY ENDOWMENT FUNDS - Amends existing law relating to college and university endowment funds to provide that the funds may be expended without a legislative appropriation; and to include a portion of endowment land inadvertently not included in the redrafting of the endowment statutes. 03/22 House intro - 1st rdg - to printing 03/23 Rpt prt - to St Aff 03/28 Rpt out - rec d/p - to 2nd rdg 03/29 2nd rdg - to 3rd rdg Rules susp - PASSED - 64-3-3 AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kempton, Kendell, Kunz, Linford, Loertscher, Mader, Marley, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail, Wheeler, Zimmermann, Mr Speaker NAYS -- Barrett, Sali, Wood Absent and excused -- Kellogg, Lake, McKague Floor Sponsor - Deal Title apvd - to Senate 03/30 Senate intro - 1st rdg - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 767 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO ENDOWMENT FUNDS; AMENDING SECTION 33-2909, IDAHO CODE, TO CLARIFY 3 THE NUMBER OF SECTIONS GRANTED TO IDAHO BY CONGRESS AND PURSUANT TO THE 4 IDAHO ADMISSION BILL AND TO PROVIDE THAT THE UNIVERSITY PERMANENT ENDOW- 5 MENT FUND SHALL CONSIST OF PROCEEDS FROM THE SALE OF ADDITIONAL ENDOWMENT 6 LANDS GRANTED TO THE STATE OF IDAHO BY THE UNITED STATES GOVERNMENT FOR 7 THE SUPPORT AND MAINTENANCE OF THE STATE UNIVERSITY AND THOSE GRANTED IN 8 LIEU OF SUCH LANDS; AMENDING SECTION 33-2910, IDAHO CODE, TO DELETE THE 9 REQUIREMENT THAT MONEYS IN THE UNIVERSITY INCOME FUND MUST BE EXPENDED 10 PURSUANT TO APPROPRIATION; AMENDING SECTION 33-2912, IDAHO CODE, TO DELETE 11 THE REQUIREMENT THAT MONEYS IN THE SCIENTIFIC SCHOOL INCOME FUND MUST BE 12 EXPENDED PURSUANT TO LEGISLATIVE APPROPRIATION; AMENDING SECTION 33-2914, 13 IDAHO CODE, TO DELETE THE REQUIREMENT THAT MONEYS IN THE AGRICULTURAL COL- 14 LEGE INCOME FUND MUST BE EXPENDED PURSUANT TO LEGISLATIVE APPROPRIATION; 15 AND AMENDING SECTION 33-3301B, IDAHO CODE, TO DELETE THE REQUIREMENT THAT 16 MONEYS IN THE NORMAL SCHOOL FUND MUST BE EXPENDED PURSUANT TO LEGISLATIVE 17 APPROPRIATION. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 33-2909, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 33-2909. UNIVERSITY PERMANENT ENDOWMENT FUND. (1) There is established in 22 the state treasury the university permanent endowment fund. This fund is per- 23 petually appropriated for the beneficiaries of the endowment. The fund shall 24 be managed and invested by the endowment fund investment board according to 25 law and the policies established by the state board of land commissioners. The 26 fund principal shall forever remain intact. The fund shall be a permanent fund 27 and shall consist of the following: 28 (a) Proceeds from the sale of any lands granted to the state of Idaho by 29 the United States government for university purposes under the provisions 30 of the act of congress of February 18, 1881, entitled "An act to grant 31 lands to Dakota, Montana, Arizona, Idaho and Wyoming for university pur- 32 poses," as amended by the Idaho Admission Bill, 26 Stat. L. 215, ch. 656, 33 amounting to seventy-two (72) entire sections and lands granted in lieu of 34 university lands; 35 (b) Proceeds from the sale of additional endowment lands granted to the 36 state of Idaho by the United States government under the provisions of the 37 Idaho Admission Bill, 26 Stat. L. 215, ch. 656, for the support and main- 38 tenance of the state university, amounting to fifty thousand (50,000) 39 acres and those granted in lieu of such lands; 40 (c) Proceeds of royalties arising from the extraction of minerals on uni- 41 versity endowment lands owned by the state; 42 ( cd) Moneys allocated from the university earnings reserve fund. 43 (2) Proceeds from the sale of university endowment lands may be first 2 1 deposited into the land bank fund established in section 58-133, Idaho Code, 2 for the benefit of endowment beneficiaries. If the proceeds from the sale of 3 land are not used to acquire other lands in accordance with section 58-133, 4 Idaho Code, the land sale proceeds shall be deposited into the university per- 5 manent endowment fund along with any earnings on the proceeds. 6 (3) Earnings from the investment of the university permanent endowment 7 fund shall be distributed according to the provisions of section 57-723A, 8 Idaho Code. 9 SECTION 2. That Section 33-2910, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 33-2910. UNIVERSITY INCOME FUND. There is established in the state trea- 12 sury the university income fund. The fund shall consist of all moneys distrib- 13 uted from the university earnings reserve fund and from other sources as the 14 legislature deems appropriate. Moneys in the university income fund shall be 15 used for the benefit of beneficiaries of the university endowment and distrib- 16 uted to current beneficiaries of the endowment. pursuant to legislative appro-17 priation.18 SECTION 3. That Section 33-2912, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 33-2912. SCIENTIFIC SCHOOL INCOME FUND. There is established in the state 21 treasury the scientific school income fund. The fund shall consist of all 22 moneys distributed from the scientific school earnings reserve fund and from 23 other sources as the legislature deems appropriate. Moneys in the scientific 24 school income fund shall be used for the benefit of the beneficiaries of the 25 endowment and distributed to current beneficiaries of the scientific school 26 endowment. pursuant to legislative appropriation.27 SECTION 4. That Section 33-2914, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 33-2914. AGRICULTURAL COLLEGE INCOME FUND. There is established in the 30 state treasury the agricultural college income fund. The fund shall consist of 31 all moneys distributed from the agricultural college earnings reserve fund and 32 from other sources as the legislature deems appropriate. Moneys in the agri- 33 cultural college income fund shall be used for the benefit of the beneficia- 34 ries of the endowment and distributed to current beneficiaries of the agricul- 35 tural college endowment. pursuant to legislative appropriation.36 SECTION 5. That Section 33-3301B, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 33-3301B. NORMAL SCHOOL INCOME FUND. There is established in the state 39 treasury the normal school income fund. The fund shall consist of all moneys 40 distributed from the normal school earnings reserve fund and from other 41 sources as the legislature deems appropriate. Moneys in the normal school 42 income fund shall be used for the benefit of the beneficiaries of the endow- 43 ment and distributed to current beneficiaries of the normal school endowment. 44 pursuant to legislative appropriation.However, not more than fifty percent 45 (50%) of earnings of the normal school income fund shall ever be appropriated 46 for the support and maintenance of either Lewis-Clark State College or the 47 department of education at Idaho State University.
STATEMENT OF PURPOSE RS10302 This bill is designed to ensure the constitutionality of an important part of the endowment investment reform legislation as it relates to the college and university endowments. Under the terms of the Idaho Admission Bill the college and university endowment income must be distributed to the boards of trustees of the endowed beneficiary college or university outside of the appropriation process. This bill will retain that authority. The terms of the Idaho Admission Bill and the Constitution, as interpreted by the Idaho Supreme Court (Black v. Board of Education, 33 Idaho 415 (1921) and by the Idaho Attorney General's Office (opinion 76-65 and Legal Guideline issued March 15, 2000), require this result. This bill will not change any of the investment or management statutes. It specifically leaves intact the Endowment Investment Board and the Land Board as controlling the management of endowment land and endowment investments. Finally, there is one housekeeping change (Section 33-2909) to include a portion of endowment land inadvertently not included in the re-drafting of the endowment statutes. FISCAL NOTE None. CONTACT: Representative Deal (208) 332-1000 STATEMENT OF PURPOSE/ FISCAL NOTE H 767