The Senate State Affairs Committee advanced a bill Tuesday that could create a dedicated path forward for the University of Idaho’s deal to purchase University of Phoenix.
The House passed a resolution earlier this month against UI’s proposed $685 million purchase of Phoenix through a nonprofit corporation. The Senate’s bill, SB 1450, would instead create an independent body politic.
The 11-member board would include two legislators, and the sponsors argued the state would be better insulated from liability. The new entity would be prohibited from asking for state funds and required to give presentations annually to the Joint Finance-Appropriation Committee and both education committees.
The bill is sponsored by Caroline Nilsson Troy, of government relations for UI and a former House member, and lobbyist Kate Haas.
The University of Idaho and the State Board of Education initially established a non-profit called Four Three Education, under which the University of Phoenix would be housed. The bill, should it pass, would create a statutorily-authorized body politic, similar to the Your Health Idaho insurance exchange or the Idaho Housing and Finance Association.
Senate Pro Tempore Chuck Winder, R-Boise, said he and Speaker of the House Mike Moyle, R-Star, had sought several legal opinions on the matter.
“This would enable the transaction to move forward,” Winder said.
Haas told lawmakers that the state would not be liable for any of 43 Education’s bond, nor would it use the state’s credit. The bill would establish a fund where the new 43 Education would deposit all of its proceeds.
The state board, which acts as UI’s Board of Regents, would be able to take on up to $9.9 million annually in liability with a cap of $50 million in aggregate.
Several of the committee members called the idea innovative.
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Categories: South Dakota, Education, General