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