HJ0003 • 2021

State lands mineral royalties-constitutional amendment.

A JOINT RESOLUTION proposing to amend the Wyoming Constitution to provide that two-thirds of state mineral royalties earned from the lease of state school lands may be appropriated by the legislature for the support of the public schools for six years and to provide thereafter for retaining a portion of mineral royalties within the perpetual fund to be made available for expenditure for support of public schools in subsequent years; and providing a ballot statement.

Budget Education Land

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor: Representative Hallinan
Last action: 2021-04-01
Official status: inactive
Effective date: 3/1/2021

Plain English Breakdown

The bill did not pass and was not considered for further action, so details beyond its proposal phase cannot be confirmed.

Amending Wyoming Constitution on School Land Mineral Royalties

This resolution proposes to change the Wyoming Constitution to allow for a higher percentage of mineral royalties from state school lands to be used for public schools during a specific period and sets up rules for future use of these funds.

What This Bill Does

Proposes an amendment to the Wyoming Constitution allowing two-thirds of mineral royalties earned from leasing state school lands to be spent on public schools between July 1, 2023, and June 30, 2029.
Establishes a separate account within the perpetual fund that will hold one-third of annual mineral royalties after 2029.

Who It Names or Affects

The Wyoming Legislature, which would have more flexibility to use mineral royalties for education during a specific period.
Public school funding, as it will receive higher royalty payments from state lands temporarily and then through a new fund in the future.

Terms To Know

Perpetual Fund: A special account that holds money for long-term use, like supporting public schools.
Mineral Royalties: Money paid to the state when companies extract minerals from land owned by the state.

Limits and Unknowns

The bill did not pass and was not considered for further action.
Details about how much money will be available after 2029 are based on future investment returns of the perpetual fund.

Amendments

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

HJ0003H2001

2nd reading • Representative Zwonitzer

Corrected, Failed

Plain English: The amendment changes the percentage of state mineral royalties that can be appropriated for public schools from thirty-three and one-third percent to sixty-six and two-thirds percent, removes certain language about a specific year, and deletes some new text.

Changes the appropriation limit from thirty-three and one-third percent to sixty-six and two-thirds percent of state mineral royalties earned from leasing state school lands.
Removes references to the year 2029 in the bill.
Deletes specific language added on page three, lines 2 through 5.

The amendment text does not provide clear details about what is deleted on page three, lines 2 through 5, making it hard to explain fully without additional context.

HJ0003H2002

2nd reading • Representative Harshman

Failed

Plain English: This amendment changes the percentage of state mineral royalties that can be appropriated for public schools from two-thirds to one-half, removes a six-year time limit, and adjusts other related percentages in the bill.

Changes the portion of state mineral royalties that can be used by the legislature for supporting public schools from two-thirds to one-half.
Removes the provision that allows this appropriation only for six years.
Adjusts a percentage from thirty-three and one-third (33 1/3) to fifty (50).
Deletes specific language related to the year 2029 and modifies percentages accordingly.

The amendment text does not provide full context, so some details about how these changes will affect the overall bill are unclear.

HJ0003H3001

3rd reading • Representative Harshman

Adopted

Plain English: The amendment changes how mineral royalties from state school lands are managed, setting aside one-third in a separate account within the perpetual fund for future use to support public schools.

Adds language to retain one-third of mineral royalties earned from leasing state school lands within a separate account of the perpetual fund starting July 1, 2029.
Limits annual expenditures from this separate account and investment income to an amount equal to five and one-half percent (5.5%) of the five-year average value of the perpetual fund.
Clarifies that funds in the separate account are not subject to certain constitutional restrictions.

The amendment's text does not specify how the remaining two-thirds of mineral royalties will be used or managed after the initial six years.

HJ0003HS001

Standing Committee • House Appropriations Committee

Failed

Plain English: The amendment proposes to add a new section that appropriates $82,000 from the general fund for the secretary of state's office to cover publication costs related to this resolution.

Adds an appropriation of $82,000 from the general fund to the secretary of state’s office.

The amendment does not provide details on what specific publications will be funded or how the funds will be used beyond publication costs.
It is unclear if this amount covers all necessary publication expenses for the resolution.

HJ0003SS001

Standing Committee • Senate Revenue Committee

Filed

Plain English: The amendment removes specific language about retaining mineral royalties for public schools in future years from a constitutional amendment proposal.

Removes references to retaining mineral royalties within the perpetual fund for support of public schools in subsequent years.
Eliminates provisions related to annual distribution of funds from the perpetual school fund.

The exact impact on future funding for public schools is unclear due to removed details about long-term financial planning.

Bill History

2021-04-01 Senate
S COW:S Did not consider for COW
2021-03-25 Senate
S Placed on General File
2021-03-25 Senate
S02 - Appropriations:Recommend Do Not Pass 3-2-0-0-0
2021-03-23 Senate
S COW:Rerefer to S02 - Appropriations
2021-03-18 Senate
S Placed on General File
2021-03-18 Senate
S03 - Revenue:Recommend Amend and Do Pass 4-1-0-0-0
2021-03-10 Senate
S Introduced and Referred to S03 - Revenue
2021-03-10 Senate
S Received for Introduction
2021-03-08 House
H 3rd Reading:Passed 40-20-0-0-0
2021-03-05 House
H 2nd Reading:Passed
2021-03-04 House
H COW:Passed
2021-03-02 House
H Placed on General File
2021-03-02 House
H02 - Appropriations:Recommend Amend and Do Pass 6-1-0-0-0
2021-03-01 House
H03 - Revenue:Rerefer to H02 - Appropriations
2021-03-01 House
H03 - Revenue:Recommend Do Pass 7-2-0-0-0
2021-02-05 House
H Introduced and Referred to H03 - Revenue
2021-02-05 House
H Received for Introduction
2021-02-04 LSO
Bill Number Assigned

Current Bill Text

Read the full stored bill text

21LSO-0300
2021
STATE OF WYOMING
21LSO-0300
ENGROSSED
3.0

House Joint Resolution NO. HJ0003

State lands mineral royalties-constitutional amendment.

Sponsored by: Representative(s) Hallinan, Andrew, Baker, Banks, Bear, Henderson, Sommers, Stith and Sweeney

A JOINT RESOLUTION

for

A JOINT RESOLUTION proposing to amend the Wyoming Constitution to provide that two-thirds of state mineral royalties earned from the lease of state school lands may be appropriated by the legislature for the support of the public schools for six years and to provide thereafter for retaining a portion of mineral royalties within the perpetual fund to be made available for expenditure for support of public schools in subsequent years; and providing a ballot statement.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF WYOMING,
two-thirds of all the members of the two houses, voting separately, concurring therein:

Section 1.

The following proposal to amend Wyoming Constitution, Article 7, Section 2 is proposed for submission to the electors of the State of Wyoming at the next general election for approval or rejection to become valid as a part of the Constitution if ratified by a majority of the electors at the election:

Article 7, Section 2.

School revenues.

The following are declared to be perpetual funds for school purposes, of which the annual income only can be appropriated, to wit: Such per centum as has been or may hereafter be granted by congress on the sale of lands in this state; all moneys arising from the sale or lease of sections number sixteen and thirty-six in each township in the state, and the lands selected or that may be selected in lieu thereof; the proceeds of all lands that have been or may hereafter be granted to this state, where by the terms and conditions of the grant, the same are not to be otherwise appropriated; the net proceeds of lands and other property and effects that may come to the state by escheat or forfeiture, or from unclaimed dividends or distributive shares of the estates of deceased persons; all moneys, stocks, bonds, lands and other property now belonging to the common school funds. Provided, that the rents for the ordinary use of said lands shall be applied to the support of public schools and, when authorized by general law, not to exceed thirty-three and one-third (33 1/3) per centum of oil, gas, coal, or other mineral royalties arising from the lease of any said school lands may be so applied
, except for the period from July 1, 2023 through June 30, 2029, during which time up to sixty-six and two-thirds (66 2/3) per centum of mineral royalties may be so applied
.
In each fiscal year commencing on and after July 1, 2029, thirty-three and one-third percent (33 1/3%) of mineral royalties shall be retained within a separate account of the perpetual fund to be available in subsequent years for the support of the public schools as authorized by general law.

The amount available from the separate account shall be limited each fiscal year to that necessary, when added to income made available from investments of the perpetual fund, to provide an amount equal to five and one-half percent (5 1/2%) of the five (5) year

average value of the perpetual fund. Funds within the separate account shall not be subject to Article 18, Section 6 of this Constitution.

Section 2.

That the Secretary of State shall endorse the following statement on the proposed amendment:

This amendment provides that from July 1, 2023 through June 30, 2029 up to two-thirds (2/3) of state mineral royalties earned from the lease of state school lands may be available for appropriation by the legislature for the support of the public schools. The amendment also establishes a separate account within the perpetual fund to hold one-third (1/3) of state mineral royalties earned each year from the lease of school lands.

Funds within the separate account would be available for the support of public schools in subsequent years to supplement investment income from the perpetual fund.

The amendment limits expenditures from the separate account so that the total amount from the separate account and investment income made available for expenditure cannot exceed five and one-half percent (5 1/2%) of the five (5) year average value of the perpetual fund. Currently, one-third (1/3) of the mineral royalties are available for appropriation by the legislature for the support of the public schools and the remaining two-thirds (2/3) of mineral royalties become part of the perpetual school fund.

(END)

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