2006 Legislation
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SENATE BILL NO. 1416 – Millennium Permanent Endowment Fund

SENATE BILL NO. 1416

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Bill Status



S1416............................................................by FINANCE
MILLENNIUM PERMANENT ENDOWMENT FUND - Adds to and amends existing law to
create the Idaho Millennium Permanent Endowment Fund; to provide for an
annual distribution from the Idaho Millennium Permanent Endowment Fund to
the Idaho Millennium Income Fund; to provide for distribution of moneys
from the Idaho Millennium Fund to the Idaho Millennium Income Fund; to
provide a fund balance limit in the Idaho Millennium Fund; to provide for
the transfer to the Idaho Millennium Permanent Endowment Fund of any amount
exceeding the statutory limit; to provide that the Idaho Millennium Income
Fund shall consist of distributions from the Idaho Millennium Permanent
Endowment Fund; to revise the uses of the fund; and to direct the State
Treasurer to transfer ten million dollars of the Idaho Millennium Fund
balance to the Idaho Millennium Permanent Endowment Fund upon adoption of
Senate Joint Resolution No. 107 by the electorate of the state of Idaho.
                                                                        
02/24    Senate intro - 1st rdg - to printing
02/27    Rpt prt - to Fin
    Rpt out - rec d/p - to 2nd rdg
02/28    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Burkett, Burtenshaw, Cameron,
      Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Bunderson
    Floor Sponsors - Lodge & Cameron
    Title apvd - to House
03/03    House intro - 1st rdg - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/08    Ref'd to St Aff
03/10    Rpt out - rec d/p - ret'd to 3rd rdg
03/16    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Stevenson, Trail, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Crow, Field(23), Snodgrass, Wills, Wood
    Floor Sponsor - Lake
    Title apvd - to Senate
03/17    To enrol
03/20    Rpt enrol - Pres signed - Sp signed
03/21    To Governor
03/24    Governor signed
         Session Law Chapter 187
         Effective: Upon passage of SJR 107
         by the electorate of Idaho

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1416
                                                                        
                                    BY FINANCE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO MILLENNIUM FUND; AMENDING CHAPTER 18,  TITLE  67,  IDAHO
  3        CODE,  BY THE ADDITION OF A NEW SECTION 67-1801, IDAHO CODE, TO CREATE THE
  4        IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND; AMENDING CHAPTER 18, TITLE  67,
  5        IDAHO  CODE, BY THE ADDITION OF A NEW SECTION 67-1802, IDAHO CODE, TO PRO-
  6        VIDE FOR AN ANNUAL DISTRIBUTION FROM THE IDAHO MILLENNIUM PERMANENT ENDOW-
  7        MENT FUND TO THE IDAHO MILLENNIUM INCOME FUND; AMENDING  SECTION  67-1801,
  8        IDAHO  CODE, TO PROVIDE FOR DISTRIBUTION OF MONEYS TO THE IDAHO MILLENNIUM
  9        FUND, TO PROVIDE A CORRECT CODE REFERENCE AND TO REDESIGNATE THE  SECTION;
 10        AMENDING  SECTION  67-1803, IDAHO CODE, TO PROVIDE FOR AN ANNUAL DISTRIBU-
 11        TION FROM THE IDAHO MILLENNIUM FUND AND TO REDESIGNATE THE SECTION; AMEND-
 12        ING CHAPTER 18, TITLE 67, IDAHO CODE, BY THE ADDITION  OF  A  NEW  SECTION
 13        67-1805,  IDAHO  CODE,  TO  PROVIDE  A  FUND  BALANCE  LIMIT  IN THE IDAHO
 14        MILLENNIUM FUND AND TO PROVIDE FOR TRANSFER TO THE IDAHO MILLENNIUM PERMA-
 15        NENT ENDOWMENT FUND OF ANY AMOUNT EXCEEDING THE STATUTORY LIMIT;  AMENDING
 16        SECTION  67-1802,  IDAHO CODE, TO PROVIDE THAT THE IDAHO MILLENNIUM INCOME
 17        FUND SHALL CONSIST OF DISTRIBUTIONS FROM THE  IDAHO  MILLENNIUM  PERMANENT
 18        ENDOWMENT FUND, TO REVISE THE USES OF THE FUND AND TO REDESIGNATE THE SEC-
 19        TION;  AMENDING  SECTIONS  67-1804,  67-1805  AND  67-1806, IDAHO CODE, TO
 20        REDESIGNATE THE SECTIONS; PROVIDING AN EFFECTIVE DATE; AND  DIRECTING  THE
 21        STATE  TREASURER  TO  TRANSFER TEN MILLION DOLLARS OF THE IDAHO MILLENNIUM
 22        FUND BALANCE TO THE IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND  UPON  ADOP-
 23        TION  OF SENATE JOINT RESOLUTION NO. 107 BY THE ELECTORATE OF THE STATE OF
 24        IDAHO.
                                                                        
 25    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 26        SECTION 1.  That Chapter 18, Title 67, Idaho Code, be,  and  the  same  is
 27    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 28    ignated as Section 67-1801, Idaho Code, and to read as follows:
                                                                        
 29        67-1801.  IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND. (1) There  is  hereby
 30    created in the state treasury the "Idaho Millennium Permanent Endowment Fund."
 31    The  fund  shall consist of eighty percent (80%) of the moneys received by the
 32    state of Idaho on and after January 1, 2007, pursuant to the master settlement
 33    agreement entered into between tobacco product manufacturers and the state  of
 34    Idaho,  and  such  moneys  as may be provided by legislative appropriations or
 35    otherwise directed to the fund by the legislature, including other  moneys  or
 36    assets that the fund receives by bequest or donation.
 37        (2)  The moneys received annually for deposit to the fund, including earn-
 38    ings,  shall forever remain inviolate and intact. No portion of the fund shall
 39    ever be transferred to any other fund, or used,  or  appropriated,  except  as
 40    allowed  by  the  provisions of section 18, article VII of the constitution of
 41    the state of Idaho and as directed by the provisions of section 67-1802, Idaho
 42    Code.
 43        (3)  Fund assets shall be invested by the state treasurer according to the
                                                                        
                                           2
                                                                        
  1    standards of the Idaho uniform prudent investor  act,  chapter  5,  title  68,
  2    Idaho  Code, and the state treasurer is hereby granted authority to invest the
  3    assets of the fund in any investment instruments authorized by  the  standards
  4    of the Idaho uniform prudent investor act.
                                                                        
  5        SECTION  2.  That  Chapter  18,  Title 67, Idaho Code, be, and the same is
  6    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  7    ignated as Section 67-1802, Idaho Code, and to read as follows:
                                                                        
  8        67-1802.  DISTRIBUTION FROM THE IDAHO MILLENNIUM PERMANENT ENDOWMENT FUND.
  9    On  the  first  business  day  of July, or as soon thereafter as possible, the
 10    state treasurer shall distribute to the Idaho millennium income fund five per-
 11    cent (5%) of the Idaho millennium permanent endowment fund's  average  monthly
 12    fair market value of the first twelve (12) months of the preceding twenty-four
 13    (24)  months.  Provided  however,  the distribution shall not exceed the Idaho
 14    millennium permanent endowment fund's fair market value on the first  business
 15    day in July.
                                                                        
 16        SECTION  3.  That  Section 67-1801, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
                                                                        
 18        67-18013.  IDAHO MILLENNIUM FUND. There is hereby  created  in  the  state
 19    treasury  the  "Idaho  Millennium  Fund." The fund shall consist of all twenty
 20    percent (20%) of the moneys distributed to received by the state of  Idaho  on
 21    and after January 1, 2007, pursuant to the master settlement agreement entered
 22    into  between  tobacco  product  manufacturers  and  various states, including
 23    Idaho, and such moneys as may be provided  by  legislative  appropriations  or
 24    otherwise  directed  to  the fund by the legislature including other moneys or
 25    assets that the fund receives by bequest or donation. Money in the fund is not
 26    subject to appropriation or  distribution,  except  as  provided  in  sections
 27    67-18024,  and 67-1803, Idaho Code. Fund assets shall be invested by the state
 28    treasurer according to the standards of the  Idaho  uniform  prudent  investor
 29    act,  chapter  5,  title  68,  Idaho  Code,  and the state treasurer is hereby
 30    granted the authority to invest the assets of the Idaho millennium fund in any
 31    investment instruments authorized by the standards of the Idaho  uniform  pru-
 32    dent investor act.
                                                                        
 33        SECTION  4.  That  Section 67-1803, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
                                                                        
 35        67-18034.  DISTRIBUTION OF FUNDS FROM THE IDAHO MILLENNIUM  FUND.  On  the
 36    first business day of July, or as soon thereafter as possible, the state trea-
 37    surer  shall  distribute to the Idaho millennium income fund five percent (5%)
 38    of the Idaho millennium fund's average monthly fair market value for the first
 39    twelve (12) months of the preceding twenty-four (24) months. Provided however,
 40    that the distribution shall not exceed the Idaho millennium fund's fair market
 41    value on the first business day in July.
                                                                        
 42        SECTION 5.  That Chapter 18, Title 67, Idaho Code, be,  and  the  same  is
 43    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 44    ignated as Section 67-1805, Idaho Code, and to read as follows:
                                                                        
 45        67-1805.  IDAHO MILLENNIUM FUND BALANCE LIMITATION.  The  balance  of  the
 46    Idaho   millennium   fund   shall  not  exceed  one  hundred  million  dollars
 47    ($100,000,000) as determined on the day  following  the  distribution  to  the
                                                                        
                                           3
                                                                        
  1    Idaho millennium income fund as required by the provisions of section 67-1804,
  2    Idaho   Code.  Any  amount  in  excess  of  the  one  hundred  million  dollar
  3    ($100,000,000) limit shall be transferred by the state treasurer to the Idaho
  4    millennium permanent endowment fund created in section 67-1801, Idaho Code.
                                                                        
  5        SECTION 6.  That Section 67-1802, Idaho Code, be, and the same  is  hereby
  6    amended to read as follows:
                                                                        
  7        67-18026.  IDAHO  MILLENNIUM  INCOME  FUND. There is hereby created in the
  8    state treasury the "Idaho Millennium Income Fund." The fund shall  consist  of
  9    distributions  from  the  Idaho millennium permanent endowment fund, the Idaho
 10    millennium fund and such moneys that may be provided by legislative appropria-
 11    tions. The Idaho millennium income fund shall be managed by  the  state  trea-
 12    surer and shall retain its own earnings. The uses of this fund shall be deter-
 13    mined by legislative appropriation, provided that such appropriations may only
 14    be granted on a one-time basis through June 30, 2004.
                                                                        
 15        SECTION  7.  That  Section 67-1804, Idaho Code, be, and the same is hereby
 16    amended to read as follows:
                                                                        
 17        67-18047.  JOINT MILLENNIUM FUND COMMITTEE -- CREATION AND APPOINTMENT  OF
 18    MEMBERS.  There is hereby created the joint millennium fund committee, hereaf-
 19    ter referred to as the committee. The committee shall consist of ten (10) mem-
 20    bers, each of whom shall be a member of the legislature. The committee members
 21    shall be appointed as follows: three (3) members shall  be  appointed  by  the
 22    president  pro  tempore of the senate, one (1) of whom shall be cochair of the
 23    committee; two (2) members shall be appointed by the minority  leader  of  the
 24    senate;  three  (3)  members shall be appointed by the speaker of the house of
 25    representatives, one (1) of whom shall be cochair of the  committee;  and  two
 26    (2)  members  shall be appointed by the minority leader of the house of repre-
 27    sentatives. The term of a member of the committee shall coincide with the term
 28    of election to the legislature. A vacancy during the term of a member  of  the
 29    committee shall be filled by the appointing authority of that member, and mem-
 30    bers may be reappointed to a subsequent term.
                                                                        
 31        SECTION  8.  That  Section 67-1805, Idaho Code, be, and the same is hereby
 32    amended to read as follows:
                                                                        
 33        67-18058.  POWERS AND DUTIES OF THE COMMITTEE. The  committee  shall  have
 34    the following powers and duties:
 35        (1)  To meet not less than two (2) times each year;
 36        (2)  To establish rules for governance and operation of committee proceed-
 37    ings;
 38        (3)  To  request applications for funding from the Idaho millennium income
 39    fund;
 40        (4)  To meet to hear testimony and to consider  applications  for  funding
 41    from the Idaho millennium income fund;
 42        (5)  To  evaluate the actual and potential success of programs funded with
 43    moneys from the Idaho millennium income fund; and
 44        (6)  To present recommendations annually to the legislature for the use of
 45    the moneys in the Idaho millennium income fund.
                                                                        
 46        SECTION 9.  That Section 67-1806, Idaho Code, be, and the same  is  hereby
 47    amended to read as follows:
                                                                        
                                           4
                                                                        
  1        67-18069.  SUPPORT  AND  STAFF FOR THE COMMITTEE. The legislative services
  2    office shall provide for the support and staffing of the committee as the com-
  3    mittee may require in the performance of its duties.
                                                                        
  4        SECTION 10.  This act shall be in full force and effect on and  after  the
  5    date  of  adoption of Senate Joint Resolution No. 107 by the electorate of the
  6    state of Idaho as required by law.
                                                                        
  7        SECTION 11.  Upon the adoption of Senate Joint Resolution No. 107  by  the
  8    electorate of the state of Idaho as required by law, the State Treasurer shall
  9    transfer  ten million dollars of the fund balance of the Idaho Millennium Fund
 10    to the Idaho Millennium Permanent Endowment Fund.

Statement of Purpose / Fiscal Impact


                     	STATEMENT OF PURPOSE

                              RS 16082

	The proposed legislation codifies the provision of Senate Joint 
Resolution 107 that proposes a constitutional amendment to endow the 
Idaho Millennium Permanent Endowment Fund.

	Legislation would become effective on and after January 1, 2007, 
upon passage of the constitutional amendment.  The constitutional 
amendment mandates that 80% of future tobacco settlement payments be 
placed into an endowment fund.  The amendment also directs that the 
remaining 20% of future tobacco settlement payments be placed into the 
already existing Idaho Millennium Fund.  Annual distributions from 
both of these funds will be made to the Idaho Millennium Income Fund.  
The Legislature will have the authority to spend funds in both the 
Idaho Millennium Fund and the Idaho Millennium Income Fund. 

	The legislation also provides for the State Treasurer to invest 
both the Idaho Millennium Permanent Endowment Fund and the Idaho 
Millennium Fund.  

	Further, the legislation puts into statute a cap of $100 million 
on the Idaho Millennium Fund.  Once the fund has at least $100 million 
after the annual distribution to the Idaho Millennium Fund, then any 
excess over the $100 million shall be transferred to the Idaho 
Millennium Permanent Endowment Fund.

	The proposed legislation does not change the powers and duties of 
the Millennium Fund Committee.  
	

                             FISCAL IMPACT

	There is no fiscal impact.  





Contact

Name: Senators Lodge, Cameron, Darrington, Werk, Kelly
Representatives Lake, Clark, McGeachin, Henbest, Rusche
Phone: 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                                 S 1416