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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 - 2000IN 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