Education legislative stabilization reserve account.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0382

HOUSE BILL
NO.
HB0167

Education legislative stabilization reserve account.

Sponsored by:
Representative(s) Harshman, Hammons, Hinckley, Powers and Wasserburger and Senator(s)
Jennings
and Nicholas

A BILL

for

AN ACT relating to public funds; providing for an education legislative stabilization reserve account; providing limitations on appropriations from the account; providing for investment of funds; specifying intent; providing for funding of the account; limiting funds within the school foundation program account; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 9
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4
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219 is created to read:

9
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4
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219.

Education
legislative stabilization reserve account created; funding; investments; excess funds.

(a)

There is created an education legislative stabilization reserve account. Funds within this reserve account shall not be expended except upon a two-thirds (2/3) vote of each house of the legislature voting separately. This education legislative stabilization reserve account is created in anticipation of the passage of 2006 House Joint Resolution 1, authorizing the creation of state legislative stabilization reserve accounts and restricting appropriations from the reserve accounts created pursuant to Article 16, Section 14 of the Wyoming Constitution. Funds within the education legislative stabilization reserve account created by this act shall not be appropriated until the results of the 2006 general election have been certified. If the Constitutional amendment proposed by 2006 House Joint Resolution 1 is approved by the electors the education legislative stabilization reserve account created by this act shall be designated as an account created pursuant to Wyoming Constitution, Article 16, Section 14, and the account shall be restricted as provided in Article 16, Section 14. Funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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711 in a manner to obtain the highest return possible consistent with the preservation of the corpus. If the electors approve 2006 House Joint Resolution 1, monies within the account shall be considered permanent funds of the state for purposes of Article 16, Section 6 of the Wyoming Constitution. Any earnings from investment of monies in the education legislative stabilization reserve account shall be credited by the state treasurer to the account.

(b)

The education legislative stabilization reserve account shall be funded as provided by W.S. 9
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601(d)(vi) and shall also include any additional appropriation provided by law. If the education legislative stabilization reserve account balance exceeds one billion dollars ($1,000,000,000.00) on June 30, in any fiscal year, funds then in excess of that amount shall be credited by the state treasurer to the common school permanent land fund account.

Section 2.

W.S. 9
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4
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601(d)(iii), (iv), (v)(C) and by creating a new paragraph (vi) is amended to read:

9
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4
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601.

Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments.

(d)

Any revenue received under subsection (a) of this section in excess of two hundred million dollars ($200,000,000.00) shall be distributed as follows:

(iii)

Subject to
paragraph
paragraphs
(v)
and (vi)
of this subsection, one-third (1/3) to the school foundation program account;

(iv)

Two-thirds (2/3) to the budget reserve account;

and

(v)

From the amounts which would otherwise be distributed to the school foundation program account under paragraph (iii) of this subsection, amounts shall be deposited to the higher education endowment account and the student scholarship endowment account created by W.S. 21
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16
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1201 in accordance with and subject to the requirements of this paragraph. The amounts specified in this paragraph shall be reduced as the state treasurer determines necessary to ensure that as of July 1 of each fiscal year, there is an unobligated, unencumbered balance of one hundred million dollars ($100,000,000.00) within the school foundation program account. Distributions under this paragraph shall be as follows:

(C)

After the amounts specified in subparagraphs (A) and (B) of this paragraph are deposited to the appropriate account, remaining funds shall be deposited to the
school foundation program account

education legislative stabilization reserve account

as provided in paragraph
(iii)
(vi)

of this subsection.

(vi)

From the amounts which would otherwise be distributed to the school foundation program account under paragraph (iii) of this subsection and after making distributions pursuant to paragraph (v) of this subsection, amounts shall be deposited to the education legislative stabilization reserve account created by W.S. 9
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4
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219 in accordance with and subject to the requirements of this paragraph. The amounts specified in this paragraph shall be reduced as the state treasurer determines necessary to ensure that as of July 1 of each fiscal year, there is an unobligated, unencumbered balance of one hundred million dollars ($100,000,000.00) within the school foundation program account.

Section 3.

This act is effective July 1, 2006.

(END)

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HB0167