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HB0244 • 2021

State investment administration.

AN ACT relating to public funds; providing for a study and report regarding alternative measures for managing the investment of state funds; making legislative findings; outlining issues to be covered in the study and report; providing for recommendations for a plan to provide for alternative measures; providing for filing of the report; providing for staffing and requiring assistance by state executive and legislative entities; providing an appropriation; providing for subsequent legislation; and providing for an effective date.

Budget
Enacted

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

Sponsor
HAppropriations
Last action
2021-04-12
Official status
enrolled
Effective date
4/12/2021

Plain English Breakdown

The bill summary does not specify if there will be further legislation based on the study's recommendations.

Study on State Investment Management

This law requires a study to find better ways for Wyoming to manage its state funds and improve investment practices.

What This Bill Does

  • Creates a study by the Investment Funds Committee to look at different ways to manage state investments, including creating a public corporation or an investment management company.
  • Requires the committee to recommend a new structure that will help achieve better long-term returns for Wyoming's funds.
  • Sets a deadline of November 1, 2021, for the Investment Funds Committee to submit its report to the Select Committee on Capital Financing and Investments.
  • Provides $10,000 from the general fund to support the study and report.
  • Requires ongoing collaboration between the Investment Funds Committee and the Select Committee on Capital Financing and Investments.

Who It Names or Affects

  • The Wyoming State Treasurer's Office
  • The Governor’s Office
  • The Investment Funds Committee
  • The Select Committee on Capital Financing and Investments

Terms To Know

Investment Management Structure
A system for managing how state funds are invested to achieve the best returns.
Select Committee on Capital Financing and Investments
A group within the Wyoming Legislature that reviews capital financing and investment issues.

Limits and Unknowns

  • The bill does not specify what changes will be made based on the study's recommendations.
  • It is unclear how the recommendations from the report will be implemented after November 1, 2021.
  • The effectiveness of the new management structure and its impact on state funds are unknown.

Amendments

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

HB0244HS001

Standing Committee • House Appropriations Committee

Adopted

Plain English: The amendment approves the adoption of Substitute No. 1 for HB0244, which is a bill about managing state funds.

  • Approves the adoption of Substitute No. 1 for HB0244.
  • The official text does not provide details on what changes are included in Substitute No. 1 or how it differs from previous versions of HB0244.
HB0244SW001

Committee of the Whole • Senator Hicks

Adopted

Plain English: The amendment adds a requirement for a select committee on capital financing and investments to work with another committee during the preparation of a report, changes how legislation is introduced based on this report, and specifies ongoing collaboration between these committees.

  • Adds that the select committee on capital financing and investments must collaborate with the investment funds committee while preparing the required report.
  • Changes 'shall introduce' to 'may prepare', altering how legislation is handled after reviewing the report.
  • Removes 'in' and replaces it with a period, changing sentence structure.
  • Inserts new language requiring ongoing collaboration between committees during each interim period to monitor practices and assist in improving state investment.
  • The exact nature of how legislation is prepared after the report may be unclear due to the change from 'shall introduce' to 'may prepare'.

Bill History

  1. 2021-04-12 LSO

    Assigned Chapter Number 147

  2. 2021-04-12 Governor

    Governor Signed HEA No. 0085

  3. 2021-04-06 Senate

    S President Signed HEA No. 0085

  4. 2021-04-06 House

    H Speaker Signed HEA No. 0085

  5. 2021-04-06 LSO

    Assigned Number HEA No. 0085

  6. 2021-04-06 House

    H Concur:Passed 38-19-3-0-0

  7. 2021-04-02 House

    H Received for Concurrence

  8. 2021-04-02 Senate

    S 3rd Reading:Passed 24-5-1-0-0

  9. 2021-04-01 Senate

    S 2nd Reading:Passed

  10. 2021-03-31 Senate

    S COW:Passed

  11. 2021-03-29 Senate

    S Placed on General File

  12. 2021-03-29 Senate

    S02 - Appropriations:Recommend Do Pass 4-0-1-0-0

  13. 2021-03-25 Senate

    S Introduced and Referred to S02 - Appropriations

  14. 2021-03-25 Senate

    S Received for Introduction

  15. 2021-03-24 House

    H 3rd Reading:Passed 43-17-0-0-0

  16. 2021-03-23 House

    H 2nd Reading:Passed

  17. 2021-03-22 House

    H COW:Passed

  18. 2021-03-19 House

    H Placed on General File

  19. 2021-03-19 House

    H02 - Appropriations:Recommend Amend and Do Pass 7-0-0-0-0

  20. 2021-03-05 House

    H Introduced and Referred to H02 - Appropriations

  21. 2021-03-04 House

    H Received for Introduction

  22. 2021-03-03 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0597
Bill No.:

HB0244

Effective:

Immediately

LSO No.:

21LSO-0597

Enrolled Act No.:

HEA No. 0085

Chapter No.:

147

Prime Sponsor:

House Appropriations Committee

Catch Title:

State investment administration.

Subject:

Review of and possible modifications to the management of state investments.

Summary/Major Elements:
The bill finds there is a consensus among the State Treasurer's Office, the Governor's Office, the Investment Funds
Committee
and the Legislature that the Investment Funds Committee should undertake a study to assess options for improving investment operations relating to state funds.
The goals of the study are to bring Wyoming's management of its funds into the top tier, to determine best practices for entities overseeing the investment of funds and to develop a management structure to achieve best long-term returns for the state.
The Investment Funds Committee is directed to review alternatives for investment infrastructure, including a public state corporation, a state-owned investment management company or a state-created investment council or quasi-governmental entity.
The bill specifies requirements for the Committee's recommendations to the Select Committee on Capital Financing and Investments, including recommended duties and responsibilities of all parties involved in the management of investments, staffing for the recommended entity and how the recommendations should be implemented.
The Select Committee on Capital Financing and Investments is directed to work with the Investment Funds Committee during preparation and review of the report, and during each interim regarding practices to facilitate improved investment practices by the state.
A report from the Investment Funds Committee to the Select Committee on Capital Financing and Investments is due by November 1, 2021.
The bill provides an appropriation for the study and provides for staffing.

Comments:
Requires a report
to the Capital Financing and Investments Committee by November 1, 2021
.
Requires the
Capital Financing and Investments Committee to work with the Investment Funds Committee as noted above.
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
21LSO-0597

ORIGINAL House

ENGROSSED
Bill No
.
HB0244

ENROLLED ACT NO. 85,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

AN ACT relating to public funds; providing for a study and report regarding alternative measures for managing the investment of state funds; making legislative findings; outlining issues to be covered in the study and report; providing for recommendations for a plan to provide for alternative measures; providing for filing of the report; providing for staffing and requiring assistance by state executive and legislative entities; providing an appropriation; providing for subsequent legislation; and providing for an effective date.

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

Section 1.

(a)

The legislature finds there is a consensus among the state treasurer's office, the governor's office, the investment funds committee and the legislature that the investment funds committee should undertake a study to assess options for improving the investment operations relating to state funds and to address the following goals and objectives:

(i)

To bring Wyoming's management of its sovereign wealth funds and other permanent and nonpermanent funds into the top tier in each field thereby ensuring the state and its citizens are receiving the best possible value from these key public resources;

(ii)

To identify legal and fiduciary requirements of the state in investing various fund types and clarify best practices regarding the state's oversight role as owner or trustee of invested funds;

(iii)

Development of an investment management structure that will most likely achieve the best long
‑
term returns for the state, taking into account:

(A)

Legal and fiduciary requirements, risk tolerance, spending requirements and the volatile revenues characteristic of the state;

(B)

Needs to ensure accuracy, transparency and timeliness in reporting in light of those requirements, while being as efficient as possible under those requirements.

(b)

In conducting the study, the investment funds committee shall:

(i)

Review alternatives for the investment management structure including, but not limited to, a public state corporation, a state owned investment management company or state created investment council or quasi
‑
governmental entity;

(ii)

Recommend an organization and management structure that it determines best meets the goals and objectives specified in subsection (a) of this section;

(iii)

Include in its recommendation:

(A)

An outline of the duties, makeup and responsibilities of all parties involved in the management of investments, including the state loan and investment board, and how each party would interrelate with the other parties;

(B)

An outline of the appropriate revenue and expense model adequate to support the staffing and technology needed for the recommended organization and management structure;

(C)

How to best implement the recommendation in a manner which enables investment professionals and their colleagues in operations, accounting and legal compliance to function independently and consistently with accepted industry standards;

(D)

How the investment management operations would be conducted in light of the state's status as the organization's only client;

(E)

Other recommendations the investment funds committee determines would assist the legislature or entities managing state investments in achieving the goals and objectives specified in subsection (a) of this section or would otherwise benefit the state in its management of investments.

(c)

The investment funds committee shall submit the report to the select committee on capital financing and investments not later than November 1, 2021.

The select committee on capital financing and investments shall work with the investment funds committee during the preparation and review of the report required under this section. The select committee may prepare legislation regarding the study and report under this act as it determines appropriate. The select committee shall collaborate with the investment funds committee during each interim, monitor its practices and recommendations and assist as necessary to facilitate improved investment practices by the state.

(d)

There is appropriated ten thousand dollars ($10,000.00) that
would otherwise be deposited to the general fund, to the state treasurer's office for purposes of supporting the investment funds committee study and report under this act.

This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022.

This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2022.

(e)

The state treasurer's office shall provide the investment funds committee with support as specified in W.S. 9
‑
4
‑
720. The state treasurer's office and the office of state lands and investments shall provide assistance to the investment funds committee as requested in conducting the study and providing the report required by this act.

The investment funds committee shall consider input provided by members of the state loan and investment board in conducting the study and preparing the report.

The legislative service office shall provide assistance to the investment funds committee as requested by the committee and as approved by the management council of the legislature.

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

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