Idaho Bills

Appropriates $4,035,800 to the State Treasurer for fiscal year 2017; limits the number of authorized full-time equivalent positions to 26; provides for reappropriation authority for the LGIP Fund; provides legislative intent regarding conference-related activities; provides legislative intent regarding payment of bank service fees; and provides legislative intent regarding mitigation of bank service fees.

This bill appropriates $4,035,800 to the State Treasurer for FY 2017 and caps the number of authorized full-time equivalent positions at 26.00. For program maintenance, the bill includes funding for the employer's share of increased benefit costs as well as decreases for statewide cost allocation. It includes an annualization and increase for the State Treasurer's salary changes, as provided by Section 59-501, Idaho Code. The bill also provides for an ongoing 3% merit-based increase in employee compensation for permanent employees to be distributed at the discretion of agency heads and funds the 27th payroll. One line item is included, which provides $60,000 in ongoing dedicated funds for a third-party to audit the financial statements of the various investment pools managed by the State Treasurer. Under budget law exceptions, the State Treasurer is provided with carryover authority of unspent appropriations from FY 2016 for the Local Government Investment Pool (LGIP) Fund. The bill also expresses legislative intent regarding conference related activity, payment of bank service fees, and mitigation of bank service fees.

Amends and adds to existing law to revise duties of the State Treasurer regarding public endowment funds; and to grant authority for the State Treasurer to invest certain funds otherwise excluded from his duties.

Thislegislationaddressesagapinthecodeconcerninginvestmentoffundsnotwithinthedefinition of Idle funds of the State of Idaho. Only Idle funds are within the provisions of Section 67-1210, Idaho Code and no other section addresses these investments. The Office of the Treasurer currently invests such funds and no changes to current practice are made by this legislation. Afterthecloseofthe2015legislativesession,theTreasurerdeterminedthathehasnoclearstatutory authority to invest funds of the land grant endowments and other funds held in trust by the State. Trust funds include settlement funds for reclamation of mining sites, an endowment for the Ritter Island State Park, funds in the State Insurance Fund reserve, funds held for veterans residing at the state veterans home, and PERSI money processed for payout to retirees but not yet distributed. At the direction of agencies overseeing such funds, the Office of the Treasurer has been investing the funds as if they were Idle funds for decades. All the agencies surveyed by the Treasurer are in support of codifying the Treasurer's authority to continue this practice. This legislation addresses the gap by striking confusing language exempting public endowments from the Treasurer's authority in Sections 67-1201 and 1210, Idaho Code and creating two new sections. Investment of the land grant endowments is addressed by new language in the existing Section 67-1202, Idaho Code. The amendment to Section 67-1202, Idaho Code recognizes and implements the Idaho Supreme Court's decision in State of Idaho v. Moon, 96 Idaho 140 (1974). The revised language maintains the legislature's designation of the Endowment Fund Investment Board as the agency with authority to select investments for the public endowments, and the Treasurer's constitutional role as the custodian of the Public School Permanent Endowment Fund. The amendment would authorize the Treasurer, at the request of the Endowment Fund Investment Board, to invest public endowment f