2000 Legislation
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SENATE BILL NO. 1296 – Idaho Millennium Fund established

SENATE BILL NO. 1296

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Daily Data Tracking History



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

Bill Text


 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 / Fiscal Impact


                        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