HB0161 • 2020

Reserve accounts-investments.

AN ACT relating to public funds; authorizing investment of the permanent Wyoming mineral trust fund reserve account and common school permanent fund reserve account in equities as specified; and providing for an effective date.

Education Land

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Cap Fin & Inv
Last action: 2020-03-11
Official status: enrolled
Effective date: 3/11/2020

Plain English Breakdown

The bill summary does not provide specific details on what equities will be chosen by the state treasurer.

Wyoming Mineral Trust Fund and Common School Permanent Fund Investments

This law allows up to 75% of certain reserve accounts to be invested in equities, with earnings staying within those accounts.

What This Bill Does

Allows the state treasurer to invest up to 75% of the unspent money from the Permanent Wyoming Mineral Trust Fund Reserve Account and Common School Permanent Fund Reserve Account into equities like stocks.
Ensures that investment decisions follow specific policies set by a board, aiming for high returns while keeping risks low.
Requires that earnings from these investments stay within their respective reserve accounts.

Who It Names or Affects

The state treasurer and investment advisors who manage Wyoming’s public funds.
People or organizations whose money is in the Permanent Wyoming Mineral Trust Fund Reserve Account and Common School Permanent Fund Reserve Account.

Terms To Know

Equities: Investments like stocks that represent ownership in a company.

Limits and Unknowns

The law only applies to specific reserve accounts and does not change rules for other parts of Wyoming’s public funds.
It is unclear what specific equities will be chosen by the state treasurer.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0161H3001

3rd reading • Representative Newsome

Adopted

Plain English: The amendment changes the percentage of funds that can be invested in equities from 100% to 75%.

Reduces the maximum allowed investment percentage in equities for certain reserve accounts from 100% to 75%

HB0161SS001

Standing Committee • Senate Appropriations Committee

Adopted

Plain English: The amendment changes the effective date of HB0161 to be immediate upon completion of all necessary acts for a bill to become law.

Changes the act's effective date to take effect immediately after completing all required steps for a new law.

The amendment does not provide details about what specific 'acts necessary' are, so it is unclear exactly when the bill will become effective.

Bill History

2020-03-11 LSO
Assigned Chapter Number 55
2020-03-11 Wyoming Legislature
Became Law without Governor's Signature
2020-03-06 Senate
S President Signed HEA No. 0025
2020-03-06 House
H Speaker Signed HEA No. 0025
2020-03-05 LSO
Assigned Number HEA No. 0025
2020-03-05 House
H Concur:Passed 56-4-0-0-0
2020-03-04 House
H Received for Concurrence
2020-03-04 Senate
S 3rd Reading:Passed 30-0-0-0-0
2020-03-03 Senate
S 2nd Reading:Passed
2020-03-02 Senate
S 2nd Reading:Laid Back
2020-02-28 Senate
S COW:Passed
2020-02-27 Senate
S Placed on General File
2020-02-27 Senate
S02 - Appropriations:Recommend Amend and Do Pass 3-0-2-0-0
2020-02-26 Senate
S Introduced and Referred to S02 - Appropriations
2020-02-20 Senate
S Received for Introduction
2020-02-19 House
H 3rd Reading:Passed 57-1-2-0-0
2020-02-18 House
H 2nd Reading:Passed
2020-02-17 House
H COW:Passed
2020-02-14 House
H Placed on General File
2020-02-14 House
H02 - Appropriations:Recommend Do Pass 7-0-0-0-0
2020-02-12 House
H Introduced and Referred to H02 - Appropriations 58-2-0-0-0
2020-02-11 House
H Received for Introduction
2020-02-10 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 20LSO-0212
Bill No.:

HB0161

Effective:

Immediately

LSO No.:

20LSO-0212

Enrolled Act No.:

HEA No. 0025

Chapter No.:

55

Prime Sponsor:

Select Committee on Capital Financing & Investments

Catch Title:

Reserve accounts-investments.

Subject:

Investment of the reserve accounts and retention of earnings.

Summary/Major Elements:

Under current law, the Reserve Accounts for the Permanent Wyoming Mineral Trust Fund and the Common School Account in the Permanent Land Fund may not be invested in equities as they are non-permanent funds of the state. Under Article 16, Section 6 of the Wyoming Constitution, non-permanent funds may only be invested in common stock and other equities if the Legislature authorizes the investment by a two-thirds (2/3) vote of the members elected to both houses voting separately.

The act, adopted in accordance with the constitutional requirement, authorizes a portion of the Permanent Wyoming Mineral Trust Fund Reserve Account and the Commons School Permanent Fund Reserve Account to be invested in equities, including stock of corporations.

The act also specifies that the investment earnings on the Permanent Wyoming Mineral Trust Fund Reserve Account and the Commons School Permanent Fund Reserve Account shall be retained in each account, respectively.

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

Read the full stored bill text

20LSO-0212

ORIGINAL House

ENGROSSED
Bill No
.
HB0161

ENROLLED ACT NO. 25,

HOUSE OF REPRESENTATIVES

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

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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715 by creating a new subsection (r) and 9
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4
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719(b)(intro) and (f) are amended to read:

9
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4
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715.

Permissible investments.

(r)

The state treasurer, or his designee, which shall be registered under the Investment Advisor's Act of 1940 as amended if required to be registered by the terms of that act as amended, pursuant to subsections (c) and (d) of this section, may invest up to seventy-five percent (75%) of the unobligated, unencumbered balance of the permanent Wyoming mineral trust fund reserve account created under W.S. 9
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4
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719(b) and common school permanent fund reserve account created under W.S. 9
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4
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719(f) in equities, including stocks of corporations. Investments under this subsection shall be in accordance with investment policy statements adopted by the board under W.S. 9
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4
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716. In adopting investment policy statements for the permanent Wyoming mineral trust fund reserve account and common school permanent fund reserve account, the board shall seek to preserve the balance of each account in a manner that strives for the highest possible risk
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adjusted total return consistent with an appropriate level of safety and liquidity.

9
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4
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719.

Investment earnings spending policy permanent funds.

(b)

There is created the permanent Wyoming mineral trust fund reserve account.
All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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4
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.
Beginning July 1, 2016 for fiscal year 2017 and each fiscal year thereafter, the state treasurer shall transfer unobligated funds from this account to the general fund as necessary to ensure that an amount equal to two and one
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half percent (2.5%) of the previous five (5) year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year, is available for expenditure annually during each fiscal year. As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2017, after making any transfer required pursuant to paragraph (i) of this subsection, revenues in this account in excess of one hundred fifty percent (150%) of the spending policy amount in subsection (d) of this section shall be credited to the permanent Wyoming mineral trust fund. For fiscal year 2020 and for each fiscal year thereafter:

(f)

There is created the common school permanent fund reserve account.
All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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4
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.
Beginning July 1, 2017 for fiscal year 2018 and each fiscal year thereafter, the state treasurer shall transfer unobligated funds from this account to the common school account within the permanent land income fund as necessary to ensure that an amount equal to the spending policy amount established in subsection (h) of this section is available for expenditure annually during the fiscal year. As soon as possible after the end of each of the fiscal
years beginning on and after July 1, 2017, revenues in this account in excess of one hundred fifty percent (150%) of the spending policy amount shall be credited to the common school account within the permanent land fund.

Section 2.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk