[Congressional Record Volume 153, Number 75 (Tuesday, May 8, 2007)]
[Senate]
[Page S5719]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAPO (for himself and Mr. Craig):
  S. 1325. A bill to amend the Act of July 3, 1890, to provide for the 
granting to a State of a parcel of land for use as an agricultural 
college and to proscribe the use of earnings and proceeds thereof; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. CRAPO. Mr. President, today, with my colleague from Idaho, 
Senator Craig, I rise to introduce a bill to amend the Idaho Admissions 
Act of July 3, 1890 to permit Idaho to administer Morrill Act lands and 
the proceeds there from in accordance with contemporary investment 
standards.
  The State of Idaho has been working to update its management of 
endowed assets received as part statehood from the Federal Government 
to ensure the maximum long-term financial return to the beneficiaries. 
Key to endowment reform is the implementation of contemporary 
investment principles that require asset diversification to reduce the 
risk of loss and that permit a trustee to deduct reasonable costs of 
administration of the assets normally incurred by a prudent fiduciary. 
Of the Federal grants to Idaho as part of statehood, only the Morrill 
Act limits investments in bonds of the United States or Idaho and 
precludes deducting reasonable administrative expenses incurred by the 
trustee. This bill would allow the State of Idaho to administer the 
Morrill Act assets under the same fiduciary standards now applicable to 
all of Idaho's other federally granted endowments.
  Additionally, a broad group of state, Federal, and private interests, 
including the University of Idaho College of Agricultural and Life 
Sciences, the State of Idaho, United Dairymen of Idaho and Allied 
Industry, College of Southern Idaho, the Idaho Cattle Association, 
Idaho Wool Growers, the Idaho National Laboratory, and Federal agencies 
have joined together in developing plans for the Idaho Center for 
Livestock and Environmental Studies to serve as a premier center for 
research and education in dairy and beef science. The important mission 
of the center is ``To enhance the quality of life for the citizens of 
Idaho, the Pacific Northwest, and the Nation by furthering the 
educational and scientific mission of the University of Idaho and its 
public/private partners, by providing a state-of-the-art animal 
research facility capable of large-scale research that provides sound 
scientific results and educational opportunities intended to: protect 
our air, land and water, improve the welfare and productivity of our 
livestock, encourage the efficient use of energy and capital, and 
enhance workforce and economic development.''
  The University of Idaho, as a partner in the project and beneficiary 
of the Morrill Act endowment, is well positioned to utilize endowment 
assets to both continue to carryout the educational purposes and 
maintain the underlying real estate endowment while contributing to the 
project. However, modernization of the management of endowed assets 
needs to occur in order for such a worthy project to move forward.
  That is why the legislation Senator Craig and I are introducing today 
will provide more flexibility while allowing for the allocation of 
management expenses in the same fashion as other State endowments, 
expand investment authority to match other State endowments, and 
provide for the use of the earnings from management of the sale of 
endowed lands to be used for the acquisition, construction, and 
improvements for the operation of research farms for teaching and 
research purposes.
  I ask that my colleagues act on this measure in a timely manner.
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