Municipal bonds-digital securities.

Plain English Breakdown

The official summary does not provide information on the impact on other types of public securities beyond municipal bonds.

Municipal Bonds as Digital Securities

The bill allows political subdivisions of the state to issue bonds in digital form if they comply with all relevant laws and regulations.

What This Bill Does

• Allows political subdivisions, like cities or counties, to issue bonds as digital securities.
• Requires that these digital bonds must comply with both state and federal laws and regulations.

Who It Names or Affects

• Political subdivisions of the state such as cities and counties
• People who buy or sell municipal bonds

Terms To Know

Digital Securities

Financial assets that exist in digital form, often on a blockchain.

Political Subdivisions

Local government units like cities or counties within a state.

Limits and Unknowns

• The bill does not specify how to convert existing bonds into digital securities.
• It is unclear if this change will lead to more people buying and selling municipal bonds digitally.

Official Summary Text

Bill Summary - 20LSO-0059
Bill No.:

HB0020

Effective:

7/1/2020 12:00:00 AM

LSO No.:

20LSO-0059

Enrolled Act No.:

HEA No. 0033

Chapter No.:

62

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

Municipal bonds-digital securities.

Subject:

Authorizing political subdivisions to issue bonds as digital securities.

Summary/Major Elements:

Existing law specifies general provisions as to the form and manner of issuance, payment and transfer of public securities.

The act specifically authorizes bonds issued by or on behalf of a political subdivision of the state to be issued as digital securities if the issuance is otherwise in compliance with applicable state and federal laws and regulations.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

20LSO-0059

ORIGINAL House

Bill No
.
HB0020

ENROLLED ACT NO. 33,

HOUSE OF REPRESENTATIVES

SIXTY-FIFTH LEGISLATURE OF THE STATE OF WYOMING
2020 Budget Session

AN ACT relating to public securities; authorizing issuance of certain bonds as digital securities; and providing for an effective date.

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

Section 1.

W.S. 16
‑
5
‑
502 is amended to read:

16
‑
5
‑
502.

Form, payment and transfer of securities.

(a)

The securities described in W.S. 16
‑
5
‑
501 shall be in registered or bearer form, with or without interest
coupons, be subject to such conditions for transfer, be subject to such provisions for conversion as to denomination or to bearer or registered form, be made registrable or payable, or both, by the treasurer or other officer of the issuing entity, or by trustee, registrar, paying agent or transfer agent within or without the state of Wyoming, be issued, transferred and registered by book entry, be in a denomination, bear such dates, signatures and authentications, and be held in custody by a depository within or without the state of Wyoming, all as may be determined by the entity or the governing body of the entity authorized or empowered to issue the securities. Payment at designated due dates or in installments may be required by the authorizing proceedings to be by check, draft or other medium of payment and need not be conditioned upon presentation of any security or coupon.

(b)

Bonds issued by or on behalf of a political subdivision of the state may be issued as digital securities, as defined by W.S. 34
‑
29
‑
101(a)(iii), if the bonds are otherwise issued in accordance with all applicable state and federal laws and regulations.

Section 2
.

This act is effective July 1, 2020
.

(END)

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