[Congressional Record Volume 145, Number 111 (Monday, August 2, 1999)]
[House]
[Pages H6773-H6775]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         ARIZONA STATEHOOD AND ENABLING ACT AMENDMENTS OF 1999

  Mr. SAXTON. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 747) to protect the permanent trust funds of the State of 
Arizona from erosion due to inflation and modify the basis on which 
distributions are made from those funds.

[[Page H6774]]

  The Clerk read as follows:

                                H.R. 747

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Arizona Statehood and 
     Enabling Act Amendments of 1999''.

     SEC. 2. PROTECTION OF TRUST FUNDS OF STATE OF ARIZONA.

       (a) In General.--Section 28 of the Act of June 20, 1910 (36 
     Stat. 574, chapter 310) is amended in the first paragraph by 
     adding at the end the following: ``The trust funds (including 
     all interest, dividends, other income, and appreciation in 
     the market value of assets of the funds) shall be prudently 
     invested on a total rate of return basis. Distributions from 
     the trust funds shall be made as provided in Article 10, 
     Section 7 of the Constitution of the State of Arizona.''.
       (b) Conforming Amendments.--
       (1) Section 25 of the Act of June 20, 1910 (36 Stat. 573, 
     chapter 310), is amended in the proviso of the second 
     paragraph by striking ``the income therefrom only to be 
     used'' and inserting ``distributions from which shall be made 
     in accordance with the first paragraph of section 28 and 
     shall be used''.
       (2) Section 27 of the Act of June 20, 1910 (36 Stat. 574, 
     chapter 310), is amended by striking ``the interest of which 
     only shall be expended'' and inserting ``distributions from 
     which shall be made in accordance with the first paragraph of 
     section 28 and shall be expended''.

     SEC. 3. USE OF MINERS' HOSPITAL ENDOWMENT FUND FOR ARIZONA 
                   PIONEERS' HOME.

       (a) In General.--Section 28 of the Act of June 20, 1910 (36 
     Stat. 574, chapter 310) is amended in the second paragraph by 
     inserting before the period at the end the following: ``, 
     except that amounts in the Miners' Hospital Endowment Fund 
     may be used for the benefit of the Arizona Pioneers' Home''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be deemed to have taken effect on June 20, 1910.

     SEC. 4. CONSENT OF CONGRESS TO AMENDMENTS TO CONSTITUTION OF 
                   STATE OF ARIZONA.

       Congress consents to the amendments to the Constitution of 
     the State of Arizona proposed by Senate Concurrent Resolution 
     1007 of the 43rd Legislature of the State of Arizona, Second 
     Regulator Session, 1998, entitled ``Senate Concurrent 
     Resolution requesting the Secretary of State to return Senate 
     Concurrent Resolution 1018, Forty-Third Legislature, First 
     Regular Session, to the Legislature and submit the 
     Proposition contained in Sections 3, 4, and 5 of this 
     Resolution of the proposed amendments to Article IX, Section 
     7, Article X, Section 7, and Article XI, Section 8, 
     Constitution of Arizona, to the voters; relating to 
     investment of State monies'', approved by the voters of the 
     State of Arizona on November 3, 1998.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Saxton) and the gentleman from California (Mr. George 
Miller) each will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Saxton).
  Mr. SAXTON. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. SAXTON asked and was given permission to revise and extend his 
remarks.)
  Mr. SAXTON. Mr. Speaker, I am pleased that we are considering H.R. 
747, a bill to amend the Arizona Enabling Act of 1910 to allow the 
State of Arizona to manage its State trust differently.
  The bill was introduced by our colleague, the gentleman from Arizona 
(Mr. Stump), who we will hear from in just a moment. The State of 
Arizona, like many other States, receives revenues generated from lands 
that were granted to the State upon admission to the Union. These 
revenues contribute funds to schools and other public institutions.
  As currently provided for in the original Enabling Act, the funds 
must pay all of their own income. This creates a problem because it 
does not account for or adjust to rates of inflation. Moreover, the 
current Enabling Act has a number of investment restrictions. While 
these restrictions may have been appropriate at one time, they are 
outdated and no longer necessary or advisable.
  In order to make the necessary changes to allow the State trust fund 
to be managed differently, it is necessary for Congress to approve and 
amend the Arizona Enabling Act.

                              {time}  1445

  This legislation is almost identical to a bill that we passed the 
last Congress that amended the New Mexico Enabling Act. This is an 
important piece of legislation that will benefit the State of Arizona. 
I urge my colleagues to support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself such 
time as I may consume.
  Mr. Speaker, I rise in support of this legislation.
  Mr. Speaker, the Act of June 20, 1910, which provided statehood for 
Arizona, granted federally owned lands to the new State and created a 
permanent trust fund into which revenues from these lands are invested. 
However, the act also placed certain limitations on the fund which have 
worked over time to prevent the State from managing the trust fund as 
profitably as possible. H.R. 747 will alter the terms of the trust fund 
and correct the problem.
  These changes have been approved by the voters in Arizona, but 
because they alter the original statehood act, Congress must approve 
them as well. This measure is almost identical to legislation approved 
in a previous Congress for the State of New Mexico.
  It is noncontroversial, and I urge my colleagues to support the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SAXTON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Arizona (Mr. Stump).
  Mr. STUMP. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, I want to thank the gentleman from Utah (Mr. Hansen) for 
all his hard work on this. The bill has been explained. Let me just say 
that it has been approved by the Governor. It is supported by the 
entire Arizona delegation as well.
  The proposition on the ballot that was considered in the State of 
Arizona makes very minor changes to the 1910 Enabling Act. I urge its 
support.
  I would also like to thank the Arizona delegation, Mr. Pastor, Mr. 
Kolbe, Mr. Hayworth, Mr. Salmon and Mr. Shadegg for their support and 
cosponsorship of H.R. 747, the Arizona Statehood and Enabling Act 
Amendments of 1999.
  Mr. Speaker, H.R. 747 amends the 1910 act of Congress that granted 
the State of Arizona's entry into the Union. This bill makes two minor 
changes to the Arizona Enabling Act relating to the administration of 
state trust funds. This legislation is supported by the Governor of 
Arizona, our State Treasurer, State Attorney General, State 
Legislature, and most importantly, the citizens of Arizona through 
their approval of this change through the ballot process.
  On November 3, 1998, Arizona voters passed Proposition 102. This 
ballot measure amended the Arizona constitution to authorize the 
investment of Permanent Land Trust Fund monies in equity securities. 
These trust fund monies derive from the sale of State Trust Lands 
granted to Arizona by the federal government at statehood. The 
proposition allows the State of Arizona to capitalize on the higher 
return rates offered through equity securities. This would improve 
management in the State and assist in the generation of more revenues 
for the beneficiaries by gaining authorization to invest part of the 
fund in stocks and to invest some earnings to offset inflation.
  The Arizona Statehood and Enabling Act Amendments legislation will 
also make a much needed and essential change to the funding of the 
Arizona Pioneers' Home. This state-operated facility has been dedicated 
to the long-term care of miners and homesteaders since 1911. Inadequate 
funds exist in the Miners' Hospital Endowment Fund to build and operate 
a separate hospital for disabled miners. Disabled miners have been 
cared for at the Arizona Pioneers' Home, but current law prohibits the 
commingling of funds associated with state trust lands. H.R. 747 would 
allow the Arizona Pioneers' Home to expend monies from the Miners' 
Hospital Endowment Fund to continue care for miners who meet the 
statutory admission requirements.
  Mr. Speaker, H.R. 747 is a bill that is supported by bipartisan 
interests in the State of Arizona and most importantly, the citizens of 
Arizona. I ask my colleagues for favorable consideration of this 
legislation.
  Mr. SAXTON. Mr. Speaker, I yield back the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield back the 
balance of my time.
  The SPEAKER pro tempore (Mr. Stearns). The question is on the motion 
offered by the gentleman from New Jersey (Mr. Saxton) that the House 
suspend the rules and pass the bill, H.R. 747.
  The question was taken.
  Mr. SAXTON. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the

[[Page H6775]]

Chair's prior announcement, further proceedings on this motion will be 
postponed.

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