1. The Enabling Act and article 16, section 1 of the Washington Constitution constitute a declaration of trust with regard to the property granted to the State by the United States in the Enabling Act. The constitutional trust established in article 16, section 1 does not apply to land donated to the Washington Territory that was not confirmed or reconveyed to the State in the Enabling Act. 2. The State's ability to use or transfer property acquired from the United States by grant is limited by any restrictions contained in the federal grant. However, since title to the property rests with the State, it may use or transfer the property as it chooses, so long as the State's use or transfer conforms to the restrictions in the grant. 3. Under RCW 79.01.006(2), federal restrictions on property, that limit its use to public recreational and other specific purposes, are binding conditions that conflict with other provisions of RCW 79.01.006. Therefore, property subject to such restrictions is not included in the corpus of the educational, penal, and reformatory institution account pursuant to chapter 79.01 RCW.
The Legislature may by law authorize the investment of moneys in the Permanent Common School Fund, and may define by statute the manner in which such funds may be invested.
(1) Funds generated from the management, sale or other disposition of public lands granted at statehood for charitable, educational, penal and reformatory institutions (CEP & RI) by § 17 of the state's Enabling Act may be appropriated by the legislature for support of specific state institutions. (2) Designated state institutions may, as well, be allowed by the legislature, in the exercise of reasonable prudence related to fulfillment of the particular trust purpose, to utilize CEP & RI lands themselves for their institutional purposes without cost. (3) The state's community colleges are among the classes of educational institutions for the benefit of which CEP & RI lands, or revenues derived therefrom, may be applied or appropriated.