Idaho Legislature asks private legal firm for opinion on University of Phoenix deal

BOISE — Legislative leaders have asked for an outside legal opinion regarding the University of Idaho’s transaction with the University of Phoenix.

House Speaker Mike Moyle and Senate President Pro Tempore Chuck Winder told reporters at an Idaho Press Club event Thursday morning that they have asked the Boise-based law firm Givens Pursley to look into the process by which the State Board of Education, acting as the governing body of UI, created a nonprofit entity in order to purchase the online school.

A final opinion is expected Monday.

“I’m not saying it’s a bad idea,” Moyle said. “I think the way they’re going about it is improper.”

Legislative Legal Counsel Elizabeth Bowen released an opinion Feb. 23 that outlined her grave concerns regarding the authority of the state board to create a nonprofit without legislative input, as well as other concerns she had about potential risk to the state.

At a hearing regarding House Concurrent Resolution 26, which would direct potential legal action against the board if it doesn’t change course, University of Idaho President C. Scott Green said his outside attorneys had evaluated the deal and found it to be within the state constitution and statute.

Green suggested that Bowen didn’t have the expertise in constitutional law and told lawmakers they should consider hiring outside attorneys. Bowen at the hearing agreed that lawmakers should continue looking into the legality of the deal.

Winder said he had asked Attorney General Raúl Labrador’s office what the Legislature’s role might be in the action, and “didn’t really get an answer back.”

Legislative leaders have access to a legal defense fund for hiring outside attorneys, which was used to pay for this service. Legislation passed in 2021 transferred $4 million into this fund and authorized the Senate pro tem and House speaker authority to spend it on legal expenses as they determine is needed.

Winder was optimistic about the idea of the purchase, but thought there could be a better mechanism to go about it.

“There’s probably a way forward here,” he said. “People just need to continue to work on it and keep the door open.”

The House this week voted 49-21 to pass HCR 26. Winder said the Senate wouldn't take it up until the outside legal opinion comes in.

Guido covers Idaho politics for the Lewiston Tribune, Moscow-Pullman Daily News and Idaho Press of Nampa. She may be contacted at lguido@idahopress.com and can be found on X @EyeOnBoiseGuido.