[Congressional Record Volume 153, Number 110 (Wednesday, July 11, 2007)]
[Senate]
[Pages S9021-S9022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAPO (for himself and Mr. Craig):
  S. 1764. A bill to improve the use of a grant of a parcel of land to 
the State of Idaho for use as an agricultural college, and for other 
purposes; 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 of statehood from the Federal 
Government to ensure the maximum longterm 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 U.S. 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

[[Page S9022]]

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 carry out 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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