
By Ruth Brown, Idaho Reports
The House of Representatives passed House Concurrent Resolution 26 in a 49-21 vote after a Tuesday debate featuring accusations that the University of Idaho overstepped its authority.
The passage comes after contentious meetings last week with University of Idaho leaders.
The House State Affairs Committee had many questions last week about the University of Idaho’s intent to purchase the University of Phoenix through a nonprofit. One legislative services attorney expressed concerns about the deal.
HCR 26 would declare the State Board of Education has acted beyond the scope of its legal authority in attempting to affiliate the University of Idaho with the University of Phoenix. The resolution calls on the board to reconsider its vote to establish a nonprofit corporation. It also asks the SBOE to fully cooperate with the Legislature.
If the board chooses not to reconsider, the Legislature could take legal action, per the resolution.
The resolution authorizes the Speaker of the House of Representatives and the President Pro Tempore of the Senate to act as agents of the Legislature in taking actions necessary to protect the legislative power and the people of Idaho, should a lawsuit be required.
Elizabeth Bowen, an attorney for the Legislative Services Office, offered a legal opinion to legislators on the subject. She does not believe the Board has the authority through the state constitution or through statute to purchase the University of Phoenix.
U of I and the SBOE established a non-profit called Four Three Education under which the University of Phoenix would be housed. U of I believes its Board of Regents had the power to establish Four Three Education under the Nonprofit Corporations Act.
Attorneys for U of I’s Board of Regents disagreed with Bowen’s take on the law. A letter distributed to the State Affairs Committee stated “we believe the Board of Regents, for good reasons, has simply followed the rules set by the Legislature in using the tools to form a nonprofit corporation that have been provided by the Legislature in the general laws of the state.”
In debate on the House floor Tuesday, resolution sponsor Rep. Brent Crane, R-Nampa, said he understands concerns around entering litigation, but the process matters. He believes the Legislature should have been consulted in the process of purchasing the University of Phoenix.
“If the University of Idaho defaults on those bonds, the state of Idaho is going to be on the hook,” Crane said.
Rep. Lori McCann, R-Lewiston, argued the university did go through a process. It went through the State Board of Education, which supported the purchase.
Rep. Britt Raybould, R-Rexburg, took opposition to the idea of allowing a lawsuit to move forward if the Board doesn’t reconsider its decision. She said it would default to the courts rather than create policy.
Budget committee co-chair Rep. Wendy Horman, R-Idaho Falls, told legislators she believed the only way for them to get a seat at the table was through the courts.
“The deal seems structured to intentionally exclude the Legislature,” Horman said.
The resolution now heads to the Senate for approval. Concurrent resolutions are actions taken by the Legislature and do not require the governor’s signature to take effect.


