Permanent mineral trust fund-roads.

WORKING DRAFT
2007
STATE OF
WYOMING
07LSO-0233

SENATE FILE
NO.
SF0043

Permanent mineral trust fund-roads.

Sponsored by:
Senator(s) Geis

A BILL

for

AN ACT relating to
administration of government; providing for legislatively designated investments for highways, county roads and municipal streets; authorizing transfers from the permanent
Wyoming
mineral trust fund; providing for repayment; specifying legislative intent;
and providing for an effective date.

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

Section 1.
W.S. 9
‑
4
‑
601(a)(
vi
)
,
(b)(i)
(intro)
,

(A)
and (d)
(intro)
and 9
‑
4
‑
701 by creating a new subsection (t) are amended to read:

9
‑
4
‑
601.

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

(a)

All monies received by the state of Wyoming from the secretary of the treasury of the United States under the provisions of the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191), as amended, or from lessees or authorized mine operators and all monies received by the state from its sale of production from federal mineral leases subject to the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191) as amended, except as provided by subsection (b) of this section, shall be deposited into an account
and the first

two hundred million dollars ($200,000,000.00) of revenues received in any fiscal year shall be distributed by the state treasurer as provided in this subsection. One percent (1%) of
these
revenues shall be credited to the general fund as an administrative fee, and the remainder shall be distributed as follows:

(vi)

Three and seventy
‑
five hundredths percent (3.75%) to the capital construction account to be expended as provided by W.S. 9
‑
4
‑
604(k)(i) or to fund bonds the proceeds of which will be used under W.S. 9
‑
4
‑
604(g) and one and twenty
-
five hundredths percent (1.25%) to the highway fund
.
No
distribution
under this paragraph to the capital construction account for expenditure under W.S. 9
‑
4
‑
604(k)(i) or 9
‑
4
‑
604(g)
shall be made
until re
payment required under W.S. 9
‑
4
‑
701(t)(iv)(B)

ha
s
been made
for the applicable fiscal year
;

(b)

The state treasurer shall ascertain and withhold all bonus payments received from the federal government attributable to coal, oil shale or geothermal leases of federal land within
Wyoming
and shall distribute it as follows:

(i)

Fifty percent (50%), the first seven million five hundred thousand dollars ($7,500,000.00) of which shall be distributed as follows
, but for the fiscal years beginning July 1, 2004 and July 1, 2005 any amount in excess of seven million five hundred thousand dollars ($7,500,000.00) shall be deposited in accordance with paragraph (v) of this subsection,

and
thereafter
any amount in excess of seven million five hundred thousand dollars ($7,500,000.00) per year shall be deposited into the school capital construction account established under W.S. 21
‑
15
‑
111(a)(i):

(A)

Three
-
fourths (3/4) shall be credited to the capital construction account for the purposes specified in W.S. 9
‑
4
‑
604(k)(i) or to fund bonds the proceeds of which will be used under W.S. 9
‑
4
‑
604(g
)
.
No distribution under this subparagraph shall be made until repayment required under W.S. 9
‑
4
‑
701(t)(iv)(B) has been made for the applicable fiscal year
;

(d)

Any revenue received under subsection (a) of this section in excess of two hundred million dollars ($200,000,000.00)
following payments
required under W.S. 9
‑
4
‑
701(t)(iv)
(A)

shall be distributed as follows:

9
‑
4
‑
701.

Permissible investments; treasurer's rules and regulations.

(t)

To promote the maintenance, construction and reconstruction of Wyoming state highways, county roads and municipal streets which constitute portions of the Wyoming transportation system, with the oversight of the
j
oint
t
ransportation,
h
ighways and
m
ilitary
a
ffairs
interim

c
ommittee, at the request of the
g
overnor, the
s
tate
t
reasurer may transfer
from the permanent
Wyoming
mineral trust fund

up to two hundred million dollars ($200,000,000.00) to the state highway fund, and at the request of the
s
tate
l
oan and
i
nvestment
b
oard, up to one hundred million dollars ($100,000,000.00) into a

special revenue fund
account.

Once transferred into the state highway fund or
the special revenue fund
account, interest and investment earnings on sums transferred shall
remain in the fund or account to
be used for projects approved
. Funds transferred under this subsection shall be subject to the following
:

(i)

The limitation on legislatively designated investments under W.S. 9
‑
4
‑
712 applies to th
e

funds transferred
;

(ii)

Prior to any transfer into the state highway fund, the
d
epartment of
t
ransportation shall develop and present
to the
governor

a list of priority projects, which could be designed and let within two
(2)
years, based on the condition, traffic, safety and critical need to improve the industrial, agricultural, tourism and economic development goals of the state;

(iii)

Prior to any transfer
to
the special revenue fund account for county roads or municipal streets, and based on rules adopted by the board, the state loan and investment board shall review and determine a list of priority projects from proposed projects submitted by cities, towns or counties to the board under W.S. 9
‑
4
‑
60
4
and may provide funding as provided in this subsection
.

Up
to
one percent (1%) of transferred funds may be used for state or local administrative costs
.
The board shall allocate funds
under this paragraph based upon the board's

consideration
and determination of:

(A)

Road and street c
ondition,
amount of
traffic
and
safety
considerations
;

(B)

C
ritical needs
;

(C)

Th
e extent to which each applicant is able to contribute local revenue resources to pay for a portion of the project
. Those applicants with
a lesser
ability to contribute local revenue resources shall be given greater consideration;

(D)

P
rojects may be recommended where any private company pledges to pay, and pays, at least fifty percent (50%) of the cost of a project.
These projects shall be given greater consideration
;

(E)

The requirements of W.S. 9
‑
4
‑
604 shall not apply to allocation of funds under this paragraph
;

(F)

At least one third (1/3) of e
ach

fiscal year
allocation
under this paragraph
shall be made for municipal streets.

(iv)

Transfers under this subsection shall be repaid to the
p
ermanent
Wyoming
m
ineral
t
rust
f
und amortized over not more than fifteen (15) years
from the date funds are transferred from the permanent
Wyoming
mineral trust fund
with interest at five percent (5%) per annum
.

The state loan and investment board shall establish the time for repayment when each transfer is made
:

(A)

I
n the case of
transfers to the
state highway
fund, repayment shall
be from
allocations
and encumbrances
authorized under W.S. 9
‑
4
‑
601
(
d
)
; and

(B)

I
n the case of
transfers for
county roads and municipal streets
, repayment shall
first
be from allocations
and encumbrances
authorized under W.S. 9
‑
4
‑
601(a)(vi)
and then from those authorized under W.S. 9
‑
4
‑
601(
b)(i)(A)
.

(v)

In addition
to repayments under paragraph (iv) of this subsection
, in any year the
l
egislature may appropriate sums of money to repay past transfers from the
p
ermanent
Wyoming m
ineral
t
rust
f
und into the state highway fund in which case allocations and encumbrances of portions of federal mineral royalties shall be reduced
as specified in the appropriation
.

Section 2.

(a)

In adopting this
a
ct, the
Wyoming

l
egislature recognizes its constitutional authority and obligation under Article 16, Section 19,
of the
Wyoming

c
onstitution, to authorize investments of monies contained in the
p
ermanent
Wyoming

m
ineral
t
rust
f
und and to ensure that the corpus

of the
f
und remains inviolate.

The Legislature also recognizes that maintenance, construction and reconstruction of state highways and county roads, and municipal streets to the extent that they constitute a link within the state highway or county road system, are recognized as valuable public purposes under Article 16, Section 9,
of the
Wyoming Constitution.

(b)

The
Wyoming

l
egislature finds that additional funding of state highways, county roads and municipal streets which are critically in need of additional maintenance, construction or reconstruction is essential for the continued economic growth of the
Wyoming
economy in all sectors. This
a
ct provides for a portion of that additional funding with a means for repayment of the funding rather than the enactment of additional taxes.

Section 3.
This
a
ct is effective July
1
, 2007.

(END)

1
SF0043