[Senate Report 105-393]
[From the U.S. Government Publishing Office]
Calendar No. 644
105th Congress Report
SENATE
2d Session 105-393
_______________________________________________________________________
IDAHO ADMISSION ACT
_______
October 9 (legislative day, October 2), 1998.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 4166]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 4166) to amend the Idaho Admission Act
regarding the sale or lease of school land, having considered
the same, reports favorably thereon without amendment and
recommends that the Act do pass.
Purpose of the Measure
H.R. 4166, as ordered reported, amends the Idaho Admission
Act to provide for: (1) establishment of an Earnings Reserve
Fund; (2) authorization of a land bank fund for additional land
purchases; (3) elimination of the current ten year term for
leases on school endowment lands; and (4) the removal of the
current requirement that the State issue leases for school
endowment lands at public auction.
Background and Need
In writing the 1890 law that made Idaho the 43rd State,
Congress set aside 3.5 million acres of land as a permanent
endowment to help finance the education of Idaho children in
the 20th century. These lands are spread throughout the State,
and are managed for the financial benefit of Idaho. The Idaho
Admission Act is very specific about how these lands are to be
administered. While these restrictions worked well in 1890,
some of them have now become outdated.
Section 5 of the Idaho Admission Act of 1890 created the
endowment fund, and contains rules governing the sale and lease
of endowment lands. H.R. 4166 would employ modern financial
tools to benefit Idaho's children. H.R. 4166 will replace
section 5 with a new section that gives land and investment
managers greater flexibility in managing both the endowment
lands and endowment funds.
H.R. 4166 would give the State the authority to establish a
new land bank fund which can be used to purchase additional
land. For example, this land bank would allow the State to sell
land that is difficult to mange in order to purchase land of
higher functionality and greater investment return. This
legislation also establishes an Earnings Reserve Fund. The
Earnings Reserve Fund would give investment managers greater
flexibility to make investments that have higher returns and
facilitate a steadier and higher stream of distributions.
Lastly, the legislation repeals the 10-year limit on leases on
endowment lands, and allows the State Land Board to establish
agreements that will maximize the long-term financial return on
any lease that is made.
Legislative History
H.R. 4166 was introduced by Congressman Crapo on June 25,
1998. The House Committee on Resources ordered H.R. 4166
reported by voice vote on August 5, 1998. On September 15, 1998
the bill passed House by voice vote.
The Senate companion bill, S. 2226, sponsored by Senators
Craig and Kempthorne, received a hearing on July 22, 1998,
before the Subcommittee on Forests and Public Land Management.
At an open business meeting held on September 23, 1998, the
Committee on Energy and Natural Resources ordered H.R. 4166 to
be favorably reported, without amendment.
Committee Recommendation and Tabulation of Votes
The Committee on Energy and Natural Resources, in open
business session on September 23, 1998, by unanimous voice vote
of a quorum present recommends that the Senate pass H.R. 4166.
Section-by-Section Analysis
Section 1 replaces section 5 of the Idaho Admissions Act
(26 Stat. 215, chapter 656) with new language.
Subsection (a) states that, except as provided in
subsection (c), all land granted under this Act for educational
purposes shall be sold only at public sale. It further requires
that proceeds of the sale of school land be deposited in the
public school permanent endowment fund and expended only for
the support of public schools, unless the proceeds are
deposited in a land bank fund to be used to acquire other land
in the State for the benefit of the public school permanent
endowment fund. In addition, this subsection states that, if
the proceeds are not used to acquire other land in the State
within a period specified by State law, the proceeds shall be
transferred to the public school permanent endowment fund.
Finally, this subsection requires that any earnings on amounts
in the public school permanent endowment fund be deposited in
an earnings reserve fund to be used for the support of public
schools.
Subsection (b) provides that any land granted under this
Act for educational purposes may be leased in accordance with
State law.
Subsection (c) states that the land granted for educational
purposes under this Act may be exchanged for other public or
private land and requires that the values of exchanged lands
shall be approximately equal. This subsection authorizes values
to be equalized by the payment of funds by the appropriate
party if values are not approximate equal. Additionally, this
subsection states that a land exchange with the United States
shall be limited to Federal land within the State that is
subject to exchange under the law governing the administration
of the Federal land. This subsection also states that all
exchanges made with the United States before the date of
enactment of this paragraph are approved.
Subsection (d) provides that the land granted for
educational purposes, whether surveyed or unsurveyed, shall not
be subject to preemption or entry, and shall be reserved for
school purposes only.
Cost and Budgetary Consideration
The following estimate of this measure has been provided by
the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 28, 1998.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4166, an act to
amend the Idaho Admission Act regarding the sale or lease of
school land.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Marjorie
Miller.
Sincerely,
June E. O'Neill, Director.
Enclosure.
congressional budget office cost estimate
H.R. 4166--An act to amend the Idaho Admission Act regarding the sale
or lease of school land
H.R. 4166 would amend the Idaho Admission Act to provide
the state with greater flexibility in managing lands given to
it by the federal government in 1890 and placed in an endowment
to benefit public education. These changes would conform
federal statute to recent amendments to the state constitution
enacted by the Idaho State Legislature.
CBO estimates that enacting this legislation would have no
impact on the federal budget. Because H.R. 4166 would not
affect direct spending or receipts, pay-as-you-go procedures
would not apply. H.R. 4166 would not affect direct spending or
receipts, pay-as-you-go procedures would not apply. H.R. 4166
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act and would impose no
costs on state, local, or tribal governments.
On August 12, 1998, CBO submitted a cost estimate for H.R.
4166, as ordered reported by the House Committee on Resources.
The two versions are identical, as are the cost estimates.
The CBO staff contact for this estimate is Marjorie Miller.
This estimate was approved by Robert A. Sunshine, Deputy
Assistant Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the
Committee makes the following evaluation of the regulatory
impact which would be incurred in carrying out H.R. 4166.
The bill is not a regulatory measure in the sense of
imposing Government established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little if any additional paperwork would result from the
enactment of H.R. 4166.
Executive Communications
The testimony provided by the Forest Service at the
Subcommittee hearing follows:
Statement of Gloria Manning, Associate Deputy Chief, National Forest
Systems, Forest Service, Department of Agriculture
Mister Chairman and Members of the Subcommittee: I am
Gloria Manning, Associate Deputy Chief for National Forest
Systems. I am pleased to be here to share the Administration's
view on S. 2226, which would amend the Idaho Admission Act with
regard to the sale or lease of school land.
s. 2226 idaho school land amendment
S. 2226 would amend the Idaho Admission Act with regard to
the sale or lease of school land. The Administration takes no
position on this bill because it reflects the will of the State
of Idaho in regards to the disposition of Idaho state lands.
The Idaho State Legislature passed amendments to the Idaho
State Constitution which removes the 10 year limit for the
lease of public state lands and prohibits the use of public
auction for awarding leases. In general, the Administration
supports term limits for public land leases to ensure
implementation of appropriate conservation and land management
objectives that reflect current science. Term limits also
provide a natural enforcement mechanism to protect the public
interests in land use. The elimination of competitive bidding
for public land leases undermines the public's ability to
collect full value for the use of public land and sometimes
prohibits viable panners from having the privilege of using
public lands. The Administration does not oppose the
legislation that affects land entirely under the jurisdiction
of the State of Idaho, but does not condone the land management
principles inherent in the legislation before the Committee.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate changes in existing law made by
the bill H.R. 4166, as ordered reported, are shown as follows:
IDAHO ADMISSION BILL
[26 Stat. L. 215, ch. 656.]
* * * * * * *
[Sec. 5. Sale or lease of school lands.--(a) Except as
provided in subsection (b) all lands herein granted for
educational purposes shall be disposed of only at public sale,
the proceeds to constitute a permanent school fund, the
interest of which only shall be expended in the support of said
schools. Such lands may, under such regulations as the
legislature shall prescribe, be leased for periods of not more
than ten years, and in the case of an oil, gas, or other
hydrocarbon lease or a geothermal resource and associated
byproducts lease, for as long thereafter as such product is
produced in paying quantities or the lessee in good faith is
conducting well drilling or construction operations, and such
lands shall not be subject to preemption, homestead entry, or
any other entry under the land laws of the United States,
whether surveyed or unsurveyed, but shall be reserved for
school purposes only.
(b) Such lands may be exchanged for other lands, public or
private. The values of such lands so exchanged shall be
approximately equal or, if they are not approximately equal,
they shall be equalized by the payment of money by the
appropriate party. If any such lands are exchanged with the
United States, such exchange shall be limited to Federal lands
within the State that are subject to exchange under the laws
governing the administration of such lands. All such exchanges
heretofore made with the United States are hereby approved. [As
amended 56 Stat. L. 48, ch. 36, approved February 6, 1942; 63
Stat. L. 714, ch. 622, approved October 6, 1949; 88 Stat. 1821,
Pub. L. 93-562, approved December 30, 1974.]]
SEC. 5. SALE, LEASE, OR EXCHANGE OF SCHOOL LAND
(a) Sale.--
(1) In general.--Except as provided in subsection (c)
all land granted under this Act for educational
purposes shall be sold only at public sale.
(2) Use of proceeds.--
(A) In general.--Proceeds of the sale of
school land--
(i) except as provided in clause
(ii), shall be deposited in the public
school permanent endowment fund and
expended only for the support of public
schools; and
(ii)(I) may be deposited in a land
bank fund to be used to acquire, in
accordance with State law, other land
in the State for the benefit of the
beneficiaries of the public school
permanent endowment fund; or
(II) if the proceeds are not used to
acquire other land in the State within
a period specified by State law, shall
be transferred to the public school
permanent endowment fund.
(B) Earnings reserve fund.--Earnings on
amounts in the public school permanent
endowment fund shall be deposited in an
earnings reserve fund to be used for the
support of public schools of the State in
accordance with State law.
(b) Lease.--Land granted under this Act for educational
purposes may be leased in accordance with State law.
(c) Exchange.--
(1) In general.--Land granted for educational
purposes under this Act may be exchange for other
public or private land.
(2) Valuation.--The values of exchanged lands shall
be approximately equal, or, if the values are not
approximately equal, the values shall be equalized by
the payment of funds by the appropriate party.
(3) Exchanges with the united states.--
(A) In general.--A land exchange with the
United States shall be limited to Federal land
within the State that is subject to exchange
under the law governing the administration of
the Federal land.
(B) Previous exchanges.--All land exchanges
made with the United States before the date of
enactment of this paragraph are approved.
(d) Reservation for School Purposes.--Land granted for
educational purposes, whether surveyed or unsurveyed, shall not
be subject to preemption, homestead entry, or any other form of
entry under the land laws of the United States, but shall be
reserved for school purposes only.