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20LSO-0327
2020
STATE OF WYOMING
20LSO-0327
Numbered
2.0
HOUSE BILL NO. HB0173
Modernizing and balancing state funding streams.
Sponsored by: Representative(s) Harshman, Connolly, Kinner and Walters and Senator(s) Rothfuss and Wasserburger
A BILL
for
AN ACT relating to public funds; creating an account; providing for and authorizing the transfer of funds; revising the distribution of the statutory severance tax; amending the spending policy amounts for state funds as specified; 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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225 is created to read:
9
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4
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225.
One percent statutory severance tax account; transfers.
(a)
The one percent statutory severance tax account is created. Funds within the account shall only be expended or transferred upon legislative appropriation. All funds within the account shall be invested by the state treasurer and all investment earnings from the account shall be credited to the general fund. Notwithstanding W.S. 9
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2
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1008 and 9
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4
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207(c), funds deposited to the account shall not lapse or revert at the end of the fiscal period except upon further legislative action.
(b)
A
ny unexpended, unobligated amounts in the one percent statutory severance tax account as of June 30, 2022 shall be transferred to the
permanent Wyoming mineral trust fund reserve account
as necessary to bring the balance within the
permanent Wyoming mineral trust fund reserve account to an amount equal to, or as close thereto as possible, one hundred fifty percent (150%) of the spending policy amount in W.S. 9
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4
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719(d)(v) for fiscal year 2022.
The transfer required under this subsection shall be completed not later than September 30, 2022. The balance of the one percent statutory severance tax account available for transfer shall first include any
reconciliation of actual severance taxes paid on production through June 30, 2022 for fiscal year 2022.
(c)
For fiscal biennia 2023
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2024, 2025
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2026 and 2027
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2028:
(i)
At any time, the state auditor may transfer any unexpended, unobligated amounts in the one percent statutory severance tax account to the budget reserve account as necessary to bring the balance within the budget reserve account to thirty million dollars ($30,000,000.00) or as close thereto as possible;
(ii)
Any unexpended, unobligated amounts in the one percent statutory severance tax account as of June 30 of each even numbered year shall be transferred to the budget reserve account as necessary to bring the unobligated, unencumbered balance within the budget reserve account to an amount equal to, or as close thereto as possible, the minimum amount required to be recommended by the governor to the legislature under W.S. 9
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2
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1012(e). The transfer required under this paragraph shall be
completed not later than September 30 of each even numbered year. The balance of the one percent statutory severance tax account available for transfer shall first include
any reconciliation of actual severance taxes paid on production through June 30 of the preceding biennium;
(iii)
After making each transfer to the budget reserve account and reconciliation under paragraph (i) and (ii) of this subsection, the remaining unexpended, unobligated balance in the one percent statutory severance tax account as of June 30 of each even numbered year shall be transferred as follows:
(A)
One
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half (1/2) to the school foundation program reserve account;
(B)
One
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half (1/2) to the legislative stabilization reserve account.
Section 2.
W.S. 9
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4
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203(a)(xiii), 9
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4
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219 by creating a new subsection (d), 9
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4
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719(d)(vi), (vii) and by creating new paragraphs (viii) and (ix), (h)(v), (vi), (vii) and by
creating new paragraphs (viii) and (ix) and 39
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14
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801(b)(intro) and by creating a new paragraph (iv) are amended to read:
9
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203.
Definitions.
(a)
As used in this act:
(xiii)
"This act" means W.S. 9
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201 through
9
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4
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224
9
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4
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225
.
9
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4
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219.
Legislative stabilization reserve account created; purposes; legislative deficit control account.
(d)
As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2020, after all other appropriations or transfers from the legislative stabilization reserve account to be made on or prior to June 30 of the applicable fiscal year have been made including any transfers required pursuant to subsection (b) of this section, any unexpended, unobligated amounts in the legislative stabilization reserve account in excess of one
billion seven hundred fifty million dollars ($1,750,000,000.00) shall be transferred as follows:
(i)
One-half (1/2) to the common school permanent land fund;
(ii)
One-half (1/2) to the permanent Wyoming mineral trust fund.
9
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719.
Investment earnings spending policy permanent funds.
(d)
The annual spending policy for the permanent Wyoming mineral trust fund is as follows for each fiscal year (FY):
(vi)
FY 2023
and 2024
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an amount equal to
four and three
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fourths percent (4.75%)
four and ninety
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five hundredths percent (4.95%)
of the previous five (5) year average market value of the trust fund, calculated from the first day of the fiscal year;
(vii)
FY
2024 and each fiscal year thereafter
2025 and 2026
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an amount equal to
four and one
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half percent (4.5%)
four and nine tenths percent (4.9%)
of the previous five (5) year average market value of the trust fund, calculated from the first day of the fiscal year
;
.
(viii)
FY 2027 and 2028
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an amount equal to four and eighty
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five hundredths percent (4.85%) of the previous five (5) year average market value of the trust fund, calculated from the first day of the fiscal year;
(ix)
FY 2029 and each fiscal year thereafter
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an amount equal to four and eight tenths percent (4.8%) of the previous five (5) year average market value of the trust fund, calculated from the first day of the fiscal year.
(h) The annual spending policy for the common school account within the permanent land fund is as follows for each fiscal year (FY):
(v) FY 2020 and each fiscal year through
2024
2022
- an amount equal to five percent (5%) of the previous five (5) year average market value of the account, calculated from the first day of the fiscal year;
(vi) FY
2025
2023 and 2024
- an amount equal to
four and three-fourths percent (4.75%)
four and ninety-five hundredths percent (4.95%)
of the previous five (5) year average market value of the account, calculated from the first day of the fiscal year;
(vii) FY
2026 and each fiscal year thereafter
2025 and 2026
- an amount equal to
four and one-half percent (4.5%)
four and nine tenths percent (4.9%)
of the previous five (5) year average market value of the account, calculated from the first day of the fiscal year
;
.
(viii)
FY 2027 and 2028
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an amount equal to four and eighty
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five hundredths percent (4.85%) of the previous five (5) year average market value of the account, calculated from the first day of the fiscal year;
(ix)
FY 2029 and each fiscal year thereafter
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an amount equal to four and eight tenths percent (4.8%) of the previous five (5) year average market value of the account, calculated from the first day of the fiscal year.
39
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801.
Severance tax distributions; distribution account created; formula.
(b)
Before making distributions from the severance tax distribution account under subsections (c) through (e) of this section, an amount equal to two
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thirds (2/3) of the amount of tax collected under W.S. 39
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104(a)(i) and (b)(i) and 39
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204(a)(i) for the same period shall be deposited into the permanent Wyoming mineral trust fund,
except for the period from March 15, 2016 through
June 30, 2020
June 30, 2029
these funds shall be deposited as follows:
(iv)
For fiscal years 2021 through 2029, these funds shall be deposited to the one percent statutory severance tax account created by W.S. 9
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225.
Section 3.
This act is effective July 1, 2020.
(END)
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HB0173