Amends existing law to revise provisions regarding the deposit and distribution of earnings reserve funds.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 740 BY EDUCATION COMMITTEE AN ACT1 RELATING TO PUBLIC FUNDS; AMENDING SECTION 57-723A, IDAHO CODE, TO REVISE2 PROVISIONS REGARDING THE DEPOSIT AND DISTRIBUTION OF EARNINGS RESERVE3 FUNDS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 57-723A, Idaho Code, be, and the same is hereby6 amended to read as follows:7 57-723A. DEPOSIT AND DISTRIBUTION OF EARNINGS RESERVE FUNDS -- INCOME8 FUNDS -- ADMINISTRATIVE COSTS. (1) As directed by the state board of land9 commissioners, the investment board shall distribute the earnings from the10 investments or securities in accordance with this act and the laws governing11 the respective endowment funds. Earnings from the investment of permanent12 endowment funds related to state land grants shall be deposited into each en-13 dowment's respective earnings reserve fund for distribution as provided in14 this section.15 (2) At least annually, the state board of land commissioners shall dis-16 tribute moneys constituting earnings reserve funds, in excess of the amount17 necessary to pay administrative costs, to the income funds of the respec-18 tive endowments, to each endowment's respective permanent endowment fund or19 maintained as a free fund balance in the earnings reserve funds, in amounts20 to be determined by the state board of land commissioners.21 (3) The earnings intended to support the beneficiaries of the public22 school endowment shall be distributed by special distribution from the state23 department of education on a per-pupil basis using the average daily atten-24 dance calculation in section 33-1003A, Idaho Code, to a school district, as25 defined in section 33-1001, Idaho Code, for each student in kindergarten26 through grade 12 who receives a majority of his or her instruction at a physi-27 cal facility that is owned or leased by the school district or public charter28 school.29 (3) (4) Moneys in the earnings reserve funds shall be available for ap-30 propriation by the legislature to pay for administrative costs incurred man-31 aging the assets of the endowments including, but not limited to, real prop-32 erty and monetary assets.33

SECTION 2. An emergency existing therefor, which emergency is hereby34 declared to exist, this act shall be in full force and effect on and after35 July 1, 2026.36