85-3
Opinion 85-3
Cite as Idaho Op. Att'y Gen. No. 85-3
JIM JONES
ATTORNEY GENERAL
S T A T E O F I D A H O
OFFICE OF THE ATTORNEY GENERAL
BOISE 83720
ATTORNEY GENEXAL OPINION NO.
85-3
TO: M r . S t a n l e y F. Hamilton
D i r e c t o r
Departznent o f Lands
STATEHOUSE NAIL .
TELEPHONE
( 2 0 8 1 3 3 4 - 2 4 0 0
PER REQUEST FOR ATTORNEY GENERAL' S OPINION
Regarding:
Idaho Code 3 55-140
QUES TION PRESENTED :
Idaho Code
58-140 p r o v i d e s t h a t up t o 107, o f t h e income
from s t a t e t i m b e r s a l e s , g r a z i n g l e a s e s , and r e c r e a t i o n s i t e
leases upon s t a t e l a n d s s h a l l be p a i d t o a s p e c i a l fund t o b e
used f o r maintenance, management, and p r o t e c t i o n o f such s t a t e
owned l a n d s .
Most o f such l a n d s are endowment l a n d s .
Should
proceeds
from endowment l a n d s b e accounted f o r and i n v e s t e d
s e p a r a t e l y from o t h e r s t a t e funds s o t h a t any i n t e r e s t income
earned t h e r e o n b e n e f i t s t h e endowment l a n d s o r endowment funds
r a t h e r t h a n t h e g e n e r a l fund?
M r . S t a n l e y F. Hamilton
('
D i r e c t o r
Department o f Lands
Page 2
CONCLUSION :
U n t i l J u l y 1, 1985, t h e s p e c i a l fund provided by Idaho Code
5 58-140 i s c o n s o l i d a t e d i n t h e s t a t e o p e r a t i n g fund, pursuant
t o Idaho Code 5 57-804.
I n t e r e s t upon i d l e funds i n t h e s t a t e
o p e r a t i n g fund i s p a i d t o t h e g e n e r a l fund.
Idaho Code 5
57-804 w a s r e p e a l e d by C h .
1 9 5 , 1985 S . L . , e f f e c t i v e J u l y 1,
1985.
T h e r e a f t e r , t h e s t a t e a u d i t o r i s a u t h o r i z e d t o c l a s s i f y
accounts w i t h i n t h e funds e s t a b l i s h e d by Idaho Code 5 57-803.
To
avoid
v i o l a t i o n
o f
c o n s t i t u t i o n a l
and
l a n d
g r a n t
p r o v i s i o n s ,
t h e s p e c i a l fund should b e c o n s o l i d a t e d i n t h e
agency
a s s e t
fund
s o
t h a t
i n t e r e s t w i l l b e accounted f o r
s e p a r a t e l y f o r t h e b e n e f i t o f t h e a c c o u n t .
Accordingly, we recommend t h a t e f f e c t i v e J u l y 1, 1985, t h e
s t a t e
a u d i t o r
t r a n s f e r
t h e
s p e c i a l
fund
from
t h e
s t a t e
o p e r a t i n g fund t o t h e agency a s s e t fund.
Management and c o n t r o l o f s t a t e l a n d s i s v e s t e d i n t h e
s t a t e board o f l a n d c o n n i s s i o n e r s p u r s u a n t t o Idaho Const.
a r t . 9 , $ 5 7 and 8 .
A r t i c l e 9 , $ 7 provLdes:
The
governor,
s u p e r i n t e n d e n t
o f
p u b l i c
i n s t r u c t i o n ,
s e c r e t a r y o f
s t a t e ,
a t t o r n e y
g e n e r a l and s t a t e a u d i t o r s h a l l c o n s t i t u t e
t h e s t a t e board o f l a n d commissioners, who
s h a l l
have
t h e
d i r e c t i o n ,
c o n t r o l
and
d i s p o s i t i o n
o f
t h e
p u b l i c
l a n d s
o f
t h e
s t a t e ,
under
s u c h r e g u l a t i o n s
as
may
b e
p r e s c r i b e d by law.
Idaho Const. a r t . 9 , $ 8 , p r o v i d e s , i n p e r t i n e n t p a r t :
It s h a l l b e t h e d u t y o f t h e s t a t e b o a r d o f
l a n d
commissioners
t o
p r o v i d e
f o r
t h e
l o c a t i o n , p r o t e c t i o n , s a l e o r r e n t a l o f a l l
t h e l a n d s h e r e t o f o r e , o r which may h e r e a f t e r
b e g r a n t e d t o o r a c q u i r e d by t h e s t a t e by o r
from
t h e
g e n e r a l
government,
under
such
r e g u l a t i o n s as may b e p r e s c r i b e d by l a w , and
i n such manner a s w i l l s e c u r e t h e maximum
long
term
f i n a n c i a l
r e t u r n
t o
t h e
i n s t i t u t i o n t o which g r a n t e d o r t o t h e s t a t e
i f
n o t
s p e c i f i c a l l y
g r a n t e d ; . . .
The
M r . S t a n l e y F. Hamilton
(
D i r e c t o r
Department o f Lands
Page 3
l e g i s l a t u r e
s h a l l ,
a t
t h e
e a r l i e s t
p r a c t i c a b l e p e r i o d , provide by l a w t h a t t h e
g e n e r a l g r a n t s of l a n d made by congress t o
t h e s t a t e s h a l l b e j u d i c i o u s l y l o c a t e d and
c a r e f u l l y
preserved
and
h e l d
i n
t r u s t ,
s u b j e c t t o d i s p o s a l a t p u b l i c a u c t i o n f o r
t h e u s e and b e n e f i t o f t h e r e s p e c t i v e o b j e c t
f o r which s a i d g r a n t s o f l a n d were made, and
t h e l e g i s l a t u r e s h a l l provide f o r t h e s a l e
o f s a i d lands from t i m e t o time and f o r t h e
s a l e o f timber on a l l s t a t e l a n d s and f o r
t h e
f a i t h f u l a p p l i c a t i o n o f
t h e proceeds
--
t h e r e o f i n accordance w i t h t h e terms o f s a i d
g r a n t s ; . . .
Thus, t h e c o n s t i t u t i o n imposes a duty upon t h e board o f
l a n d commissioners t o provide
f o r t h e l o c a t i o n , p r o t e c t i o n ,
s a l e and r e n t a l o f l a n d g r a n t s i n such a manner a s t o secure
maximum l o n g - t e r n f i n a n c i a l r e t u r n therefrom.
The c o n s t i t u t i o n
imposes a duty upon t h e l e g i s l a t u r e t o provide laws such t h a t
l a n d g r a n t s s h a l l be j u d i c i o u s l y l o c a t e d , c a r e f u l l y preserved ,,
-- and h e l d i n t r u s t t o f u r t h e r the purposes o f t h e l a n d g r a n t s .
Also, t h e l e g i s l a t u r e i s r e q u i r e d t o provide f o r t h e s a l e o f
l a n d s and timber and t o provide f o r t h e f a i t h f u l a p p l i c a t i o n of
t h e proceeds t h e r e o f i n accordance w i t h t h e terms o f t h e land
g r a n t s .
Idaho Code
58-140 provides a s t a t u t o r y funding mechanism
t o
c a r r y
o u t
t h i s
cons t i t u t i o n a l
mandate.
The
s e c t i o n
p r o v i d e s , i n p e r t i n e n t p a r t :
A reasonable amount n o t t o exceed t e n per
centun (107,) o f t h e moneys r e c e i v e d from t h e
s a l e o f s t a n d i n g t i m b e r , from g r a z i n g l e a s e s
and
from
r e c r e a t i o n
s i t e
l e a s e s
s h a l l
c o n s t i t u t e
a
s p e c i a l
account,
which
i s
hereby c r e a t e d t o b e used f o r maintenance,
management
and
p r o t e c t i o n o f
s t a t e owned
timber l a n d s , g r a z i n g l a n d s and r e c r e a t i o n
s i t e
l a n d s :
p r o v i d e d ,
t h a t
any
moneys
c o n s t i t u t i n g p a r t o f such account r e c e i v e d
from
a
s a l e o f
s t a n d i n g
timber
o r
from
l e a s e s o f lands which
a r e a p a r t o f any
endowment l a n d g r a n t s h a l l b e used only f o r
t h e maintenance,
management
and p r o t e c t i o n
-
,
I . '
M r . S t a n l e y F. Hamilton
D i r e c t o r
Department o f Lands
Page 4
o f
l a n d s
o f
t h e
sane
endowment
g r a n t .
Provided
f u r t h e r ,
t h a t
a l l
such
funds
c o l l e c t e d
from
timber
s a l e s
s h a l l
b e
expended
s o l e l y
f o r
t h e
purpose
o f
management, p r o t e c t i o n and r e f o r e s t a t i o n o f
state l a n d s .
A l l such funds c o l l e c t e d from
r e c r e a t i o n s i t e l e a s e s s h a l l b e expended f o r
t h e maintenance, p r o t e c t i o n and improvement
o f
b o t h
new
l e a s e
s i t e s ,
and
e x i s t i n g
r e c r e a t i o n
a r e a s
s i t u a t e on
s t a t e l a n d s .
A l l such funds c o l l e c t e d from g r a z i n g l e a s e s
s h a l l
b e
expended
f o r
t h e
maintenance,
management
and
p r o t e c t i o n
o f
s t a t e owned
grazrng l a n d s .
Control and e r a d i c a t i o n o f
-
noxious weeds i s a p a r t o f t h e maintenance,
~ r o t e c t i o n and improvement programs.
The s t a t e bkard
i s hereby a u t h o r i z e d
r e g u l a t i o n s
f i x i n g
amount r e c e i v e d from
timber and 'from each
s i t e l e a s e , n o t t o
(10%) o f t h e t o t a l ,
t h e
s p e c i a l account
o f l a n d commissioners
t o e s t a b l i s h r u l e s and
a
percentage
o f
t h e
each s a l e o f s t a n d i n g
g r a z i n g and r e c r e a t i o n
exceed t e n p e r centum
which s h a l l c o n s t i t u t e
h e r e i n
c r e a t e d .
The
account s h a l l b e d e p o s i t e d w i t h t h e s t a t e
t r e a s u r e r , who s h a l l keep a r e c o r d t h e r e o f
which s h a l l show s e p a r a t e l y moneys r e c e i v e d
from each c a t e g o r y o f endowment l a n d s .
A l l
moneys d e p o s i t e d i n t h e account a r e hereby
a p p r o p r i a t e d c o n t i n u a l l y t o t h e s t a t e board
o f
l a n d
commissioners
f o r
t h e
purposes
hereinabove enumerated.
The
s t a t u t e provides
a r e a s o n a b l e
funding mechanism t o
c a r r y o u t t h e s t a t e ' s o b l i g a t i o n t o c a r e f u l l y p r e s e r v e and
p r o t e c t l a n d s g r a n t e d t o t h e s t a t e .
However,
as
noted
p r e v i o u s l y ,
t h e
c o n s t i t u t i o n
a l s o
provides t h a t t h e l a n d s a r e h e l d i n t r u s t and t h e proceeds
therefrom must b e f a i t h f u l l y a p p l i e d i n accordance w i t h t h e
terms o f t h e g r a n t .
I n Roach v . Gooding, 11 Idaho 244, 81 P. 642 (lgOS), t h e
Idaho Supreme Court considered t h e s t a t e ' s t r u s t r e s p o n s i b i l i t y
t o apply- proceeds from t h e s a l e o f u n i v e r s i t y g r a n t - l a n d s onl;
M r . S t a n l e y F. Hamilton
D i r e c t o r
i
Department o f Lands
Page 5
f o r
support
and
maintenance
o f
t h e U n i v e r s i t y
o f
Idaho.
S p e c i f i c a l l y , t h e c o u r t considered t h e c o n s t i t u t i o n a l i t y o f a
s t a t u t e which provided
f o r repayment o f u n i v e r s i t y b u i l d i n g
bonds from t h e income from u n i v e r s i t y l a n d g r a n t s .
The c o u r t
h e l d :
I
must
t h e r e f o r e
conclude
t h a t
t h e
l e g i s l a t u r e had no power
o r a u t h o r i t y t o
a p p r o p r i a t e o r set a p a r t f o r t h e payment o f
t h e
i n t e r e s t
o r
p r i n c i p a l
o f
t h e bonds
r e f e r r e d t o any p a r t o f t h e proceeds of t h e
permanent fund c r e a t e d by t h e s a l e o f t h e
whole
o r
any
p a r t
o f
s a i d
seventy-two
s e c t i o n s o f l a n d o r t h e timber thereon.
11 Idaho a t 255
Thus,
t h e c o u r t r e q u i r e d endowment
fund proceeds
t o b e
s t r i c t l y
a p p l i e d
t o
t h e
purposes
enumerated
i n
t h e
c o n s t i t u t i o n .
I n a number o f c a s e s s i n c e Roach, s u p r a , t h e
Idaho Supreme Court ' h a s c a r e f u l l y guarded t h e endowment lands
-- and endowment funds.
For example, i n P i k e v. S t a t e Board o f
Land Commissioners, 1 9 Idaho 268, 113 P. 447 (1911) , t h e c o u r t
upheld t h e b o a r d ' s p r a c t i c e o f r e q u i r i n g an agreement t o b i d a
given p r i c e a s a c o n d i t i o n precedent t o a d v e r t i s i n g l a n d s f o r
sale.
I n Barber Lumber Co. v. G i f f o r d , 25 Idaho 654, 139 P. 557
( l g l h ) , t h e c o u r t p o i n t e d o u t t h a t t h e g r a n t o f l a n d s by t h e
.
f e d e r a l government
t o the
s t a t e c o n s t i t u t e s a t r u s t fund.
T h e r e f o r e , t h e s t a t e board o f l a n d commissioners i s bound by
t r u s t p r i n c i p l e s t o a d m i n i s t e r t h e l a n d s t o s e c u r e t h e g r e a t e s t
measure o f advantage t o t h e b e n e f i c i a r y .
It
was
h e l d
i n
H e l l e r u d
v .
Hauck,
52
Idaho
226,
1 3 P.2d 1099 (1932), t h a t t i t l e t o school g r a n t lands could n o t
b e a c q u i r e d by a d v e r s e p o s s e s s i o n a g a i n s t t h e s t a t e no matter
how
long
a d v e r s e l y
occupied.
Thus,
t h e
c a s e s
r e f l e c t
a
c o n s i s t e n t j u d i c i a l p o l i c y o f p r o t e c t i n g t h e i n t e r e s t s of t h e
b e n e f i c i a r i e s o f endowment l a n d g r a n t s and r e q u i r i n g a s t r i c t
a p p l i c a t i o n
o f
t r u s t
p r i n c i p l e s
f o r
t h e
b e n e f i t
o f
b e n e f i c i a r i e s o f endowment l a n d g r a n t s .
The Idaho Supreme Court has f u r t h e r r u l e d t h a t proceeds of
endowment
l a n d s may
o n l y b e a p p l i e d by t h e l e g i s l a t u r e i n
M r . S t a n l e y F. Hamilton
D i r e c t o r
Department o f Lands
Page 6
f u r t h e r a n c e o f the purposes o f t h e endowment.
I n Evans v.
VanDeusen,
3 1 Idaho 614,
1 7 4
P.
122
(1918) ,
t h e
c o u r t
c o n s i d e r e d a p p r o p r i a t i o n s t o i n s t i t u t i o n s under t h e c o n t r o l o f
t h e s t a t e b o a r d o f e d u c a t i o n .
The
a p p r o p r i a t i o n s provided
e s s e n t i a l l y that the amount
o f g e n e r a l fund a p p r o p r i a t i o n s
would b e reduced i n an amount e q u a l t o t h e amount o f endowment
fund
income
e a r n e d
and
a v a i l a b l e
t o
t h e
i n s t i t u t i o n s .
Endowment
fund e a r n i n g s were s e p a r a t e l y a p p r o p r i a t e d t o t h e
i n s t i t u t i o n s by means o f a c o n t i n u i n g a p p r o p r i a t i o n .
The c o u r t denied the a p p l i c a t i o n f o r a w r i t c h a l l e n g i n g the
method o f a p p r o p r i a t i o n and the accounting p r a c t i c e s used t o
implement it.
The c o u r t determined t h a t the method u t i l i z e d
d i d n o t d i v e r t endowment
funds from endowment purposes.
I n
d i s c u s s i n g the n a t u r e o f endowment funds and t h e l e g i s l a t u r e ' s
d u t y n o t t o d i v e r t them f o r o t h e r purposes t h e c o u r t s a i d :
The funds r e f e r r e d t o b e i n g d e c l a r e d by t h e
c o n s t i t u t i o n t o b e t r u s t funds,
a r e n o t ,
s t r i c t l y
s p e a k i n g ,
s u b j e c t
t o
a p p r o p r i a t i o n .
They
were
a p p r o p r i a t e d o r
s e t a p a r t f o r c e r t a i n purposes d e s i g n a t e d by
t h e
terms
o f
t h e g r a n t s
which
had
been
a c c e p t e d
by
the state.
The
l e g i s l a t u r e ,
however, i s r e q u i r e d t o provide t h e method
, by which they may b e made a v a i l a b l e f o r such
s p e c i a l p u r p o s e s ,
and t o that e x t e n t o n l y
are t h e funds s u b j e c t t o w h a t may b e c a l l e d
an
a p p r o p r i a t i o n .
The
c o u r t s
a r e
n o t
concerned
w i t h
t h e
methods
which
t h e
l e g i s l a t u r e may p r o v i d e , f u r t h e r t h a n t h a t ,
upon p r o p e r proceedings t h e r e f o r , they w i l l
p r e v e n t t h e d i v e r s i o n o f t h e funds from t h e
o b j e c t s o r purposes f o r which they have been
g r a n t e d .
31 Idaho a t 620.
While
t h e
l e g i s l a t u r e i s accorded
some
f l e x i b i l i t y
i n
p r o v i d i n g the methods o f making endowment funds a v a i l a b l e , b o t h
t h e Evans c a s e and the Roach c a s e d i s c u s s e d p r e v i o u s l y h o l d
t h a t t h e l e g i s l a t u r e may n o t d i v e r t t h o s e funds f o r purposes
o t h e r than t h o s e a u t h o r i z e d by t h e c o n s t i t u t i o n and f e d e r a l
g r a n t s .
M r . S t a n l e y F. Hamilton
D i r e c t o r
Department o f Lands
Page 7
A s noted p r e v i o u s l y , Idaho Code
58-140 c r e a t e s a s p e c i a l
fund from a p o r t i o n o f t h e proceeds o f timber s a l e s and l e a s e
payments.
The s t a t u t e provides a r e a s o n a b l e funding mechanism
t o c a r r y o u t t h e l a n d b o a r d ' s c o n s t i t u t i o n a l d u t y t o c a r e f u l l y
p r e s e r v e and p r o t e c t endowment l a n d s .
However, a s t h e c a s e s
p o i n t
o u t ,
t h e
funds
cannot b e d i v e r t e d f o r purposes n o t
a u t h o r i z e d by
t h e c o n s t i t u t i o n
and p r o v i s i o n s
o f the l a n d
g r a n t s .
We
must, t h e r e f o r e , examine t h e s t a t u t o r y p r o v i s i o n s
t o determine whether t h e y r e s u l t i n a d i v e r s i o n o f endowment
i n t e r e s t e a r n i n g s f o r unauthorized purposes.
Idaho Code $ 57-804(2) p r o v i d e s , i n p e r t i n e n t p a r t :
The following funds and money e x i s t i n g on
June 30,
1977, a r e c o n s o l i d a t e d i n t o t h e
s t a t e o p e r a t i n g fund:
A u d i t o r ' s
Created by
Fund Number
Name o f Fund
Idaho Code S e c t i o n
Ten P e r c e n t Timber and
Grazing
Land Lease Fund
58-140
Idaho Code $ 57-803(a) p r o v i d e s :
The s t a t e o p e r a t i n g fund i s hereby c r e a t e d
and e s t a b l i s h e d i n t h e s t a t e t r e a s u r y .
The
s t a t e
o p e r a t i n g
fund
i s
t o b e
used
t o
account f o r moneys which a r e n o t n e c e s s a r i l y
r e s t r i c t e d i n use o r purpose, and which a r e
g e n e r a l l y u t i l i z e d t o f i n a n c e t h e o r d i n a r y
f u n c t i o n s of s t a t e government.
The
s t a t u t e s
above-quoted
timber and g r a z i n g l a n d l e a s e
fund.
As t h e c a s e s d i s c u s s e d
from
endowment
l a n d s
a r e
r e s t r i c t e d i n use and purpose
t h e o r d i n a r y f u n c t i o n s o f s t a t e
improperly
c l a s s i f y
t h e
10%
fund w i t h i n t h e s t a t e o p e r a t i n g
p r e v i o u s l y p o i n t o u t , proceeds
t r u s t
funds
c o n s t i t u t i o n a l l y
and a r e n o t u t i l i z e d t o f i n a n c e
government.
M r . S t a n l e y F. Hamilton
D i r e c t o r
Department o f Lands
Page 8
Also, t h e r e a r e no p r o v i s i o n s i n Idaho Code
57-803(a),
57-804, o r 58-140 providing f o r i n t e r e s t e a r n i n g s t o accrue t o
t h e b e n e f i t o f t h e 10% timber and g r a z i n g l a n d l e a s e fund.
I n t e r e s t e a r n i n g s upon i d l e funds i n t h e state t r e a s u r y a r e
p a i d t o t h e g e n e r a l fund pursuant t o Idaho Code $ 67-1210.
I n our o p i n i o n , t h e 107, t i m b e r and g r a z i n g l a n d l e a s e fund
should p r o p e r l y b e placed w i t h i n t h e agency a s s e t fund.
The agency a s s e t fund i s c r e a t e d and defined by Idaho Code
5 57-803(n) as follows:
The agency a s s e t fund i s hereby c r e a t e d and
e s t a b l i s h e d
i n
t h e
s t a t e
t r e a s u r y .
The
agency asset fund i s t o b e used t o account
f o r moneys which a r e r e s t r i c t e d i n use o r
purpose, and which must o r may b e , i n v e s t e d
and accounted f o r a s s e p a r a t e e n t i t i e s , and
a r e n o t accounted f o r i n any o t h e r fund.
--
P l a c i n g t h e 10% timber and g r a z i n g l a n d l e a s e fund i n the'
aoency a s s e t fund would
s a t i s f y c o n s t i t u t i o n a l requirements
'?
s m c e t h e
fund
i s designed
t o handle
accounts which
a r e
r e s t r i c t e d i n use and purpose.
Accounts w i t h i n t h e fund a r e
accounted
f o r a s s e p a r a t e e n t i t i e s by t h e s t a t e t r e a s u r e r .
Unlike t h e s t a t e o p e r a t i n g fund, t h e agency a s s e t fund provides
t h e
n e c e s s a r y
accounting
mechanisms
t o a t t r i b u t e
i n t e r e s t
e a r n i n g s t o p a r t i c u l a r accounts.
A fundamental r u l e o f t r u s t law i s t h a t a t r u s t e e must
s e p a r a t e l y account f o r t r u s t p r o p e r t y and funds and must n o t
u s e t r u s t p r o p e r t y o r funds i n h i s t r a d e , b u s i n e s s , o r p r i v a t e
a f f a i r s o r t h e b u s i n e s s a f f a i r s o f any o t h e r person unless
a u t h o r i z e d by t h e terms
o f t h e t r u s t .
Any
p r o f i t o r g a i n
r e s u l t i n g , from h i s own use o f t r u s t funds i n u r e s t o t h e t r u s t
-
e s t a t e .
See,
993, 37 L.Ed.
Idaho, 1940) ,
60 S.Ct. 86,
e. g . , McConb v. F r i n k , 149 U.S.
62
867 (1893) ; Bruun v. Hanson, 103/F.
c e r t . d e n . Hanson v . Bruun, 308 U.S.
84 L.Ed.
47 9 ; Narnpa Investment Corp
50
Idaho 4 6 ,
293 P.
326
(1930) ;
9 ,
1 3 S.Ct.
2d 685 (C.A.
571 (1939),
. v. Demming
Restatement ,
S i n c e t h e e x i s t i n g s t a t u t e s permit t h e u s e o f t r u s t funds
t o g e n e r a t e income
f o r t h e g e n e r a l a c c o u n t , t h e y appear t o
M r . S t a n l e y F. Hamilton
D i r e c t o r
Department o f Lands
Page 9
v i o l a t e t r u s t p r i n c i p l e s .
However,
the c u r r e n t s t a t u t o r i l y
r e q u i r e d
c l a s s i f i c a t i o n
o f
the
a c c o u n t
w i t h i n
t h e
s t a t e
o p e r a t i n g fund i s r e p e a l e d by Ch.
1 9 5 , 1985
S.L.,
e f f e c t i v e
J u l y 1, 1985.
T h e r e a f t e r , the s t a t e a u d i t o r i s a u t h o r i z e d t o
c l a s s i f y accounts i n t h e v a r i o u s funds enumerated i n Idaho Code
5 57-803.
On t h e e f f e c t i v e d a t e o f the A c t , t h e s t a t e a u d i t o r
should r e c l a s s i f y t h e 10% t i m b e r and g r a z i n g l a n d l e a s e fund i n
the
agency
asset
fund
t o conform
t h e
s t a t e ' s
accounting
p r a c t i c e s t o t h o s e contemplated b y t h e Idaho C o n s t i t u t i o n .
AUTHORITIES CONS IDEXEI) :
Idaho Const. art. 9 , 5 s 7 and 8
Idaho Code 5 58-140
Idaho Code 5 57- 803, (a) , (n)
Idaho Code 5 57-804(2)
Idaho Code 5 67-1210
Idaho Code 5 57-811(4)
C h . 1 9 5 , 1985 S e s s i o n Laws
Restatement, T r u s t s , 2d $ 179
Roach v. Gooding, 11 Idaho 244, 8 1 P. 642 (1905)
P i k e v . S t a t e Board o f Land Commissioners, 1 9 Idaho 268,
6
Barber umber
do. v. G i f f o r d ,
25 Idaho 654, 139 P.
557
(1914)
~ e l l e k u d v. Hauck, 52 Idaho 226, 1 3 P.2d 1099 (1932)
Evans v . VanDeusen, 31 Idaho 614, 1 7 4 P. 122 (1918)
McCom3 v. F r i n k , 149 U.S.
629,
1 3 S.Ct. 993, 37 L.Ed. 867,
(1893)
Bruun v . Hanson, 103 F. 2d 685 (C.A. I d a h o , 1940)
c e r t . d e n .
Hanson
v .
Bruun,
308 U.S.
571,
60 S . C t .
8 6 ,
8 4 L.Ed. 479 (1939)
Nampa Investment Corp. v. Demming E x p l o r . Co. , 50 Idaho 4 6 ,
293 P. 326 (1930)
7-k
DATED t h i s 1 7 4 a y o f J u n e , 1985.
ATTORNEY GENT3U.L
S t a t e o f Idaho
M r . Stanlev F. Hamilton
.I
Director
Department o f Lands
Page 10
ANALYSIS BY:
Deputy Attorney General
Chief, Business A f f a i r s and
S t a t e Finance Division