PWMTF reserve account-distribution timing.

Plain English Breakdown

Checked against official source text during the last sync.

Changes to Wyoming Mineral Trust Fund Reserve Account

The bill changes how money from the Permanent Wyoming Mineral Trust Fund Reserve Account can be moved into the General Fund on a quarterly basis.

What This Bill Does

• Requires payments from the Reserve Account to the General Fund to happen every quarter, not just once a year.
• Specifies that these payments should only occur if there are enough funds in the Reserve Account.
• Adds rules for checking at the end of each fiscal year whether too much or too little money was moved between accounts and adjusts accordingly.

Who It Names or Affects

• The State Treasurer who manages the Permanent Wyoming Mineral Trust Fund Reserve Account.
• The General Fund which receives payments from the Reserve Account.

Terms To Know

Permanent Wyoming Mineral Trust Fund

A fund that holds money from mineral resources and is used to support state programs.

General Fund

The main account where the government keeps its general operating funds.

Limits and Unknowns

• Does not change how much money can be moved between accounts, only when it happens.
• Does not affect distributions made before July 1, 2021.

Official Summary Text

Bill Summary - 21LSO-0161
Bill No.:

SF0063

Effective:

7/1/2021 12:00:00 AM

LSO No.:

21LSO-0161

Enrolled Act No.:

SEA No. 0001

Chapter No.:

9

Prime Sponsor:

Select Committee on Capital Financing & Investments

Catch Title:

PWMTF reserve account-distribution timing.

Subject:

Deposit timing between the PWMTF-reserve account and the General Fund.

Summary/Major Elements:

Currently, the Permanent Wyoming Mineral Trust Fund Reserve Account is required to make annual deposits into the General Fund in order to guarantee a specific level of available funds in the General Fund each year.

More frequent deposits could avoid cash-flow problems in the event of low General Fund balances.

This bill amends the law to provide that payments from the Reserve Account to the General Fund shall be made on a quarterly, pro-rata basis.

The bill specifies that payments should be made only to the extent funds are available in the Reserve Account.

The bill provides for an annual reconciliation of the quarterly pro-rata payments to the General Fund in the event that excess or inadequate payments have been made.

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

21LSO-0161

ORIGINAL Senate

ENGROSSED
File No
.
SF0063

ENROLLED ACT NO. 1,

SENATE

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

AN ACT relating to public funds; clarifying and amending the permissible timing for distributions from the permanent Wyoming mineral trust fund reserve account; and providing for an effective date.

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

Section 1
.

W.S. 9
‑
4
‑
719(b)(intro) and by creating a new paragraph (ii) is amended to read:

9
‑
4
‑
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
‑
4
‑
715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account. Beginning July 1,
2016
2021
for fiscal year
2017
2022
and each fiscal year thereafter,
to the extent funds are available,
the state treasurer shall transfer unobligated funds from this account to the general fund
on a quarterly, pro
‑
rata basis
as necessary to ensure that an amount equal to two and one
‑
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)
paragraphs (i) and (ii)
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:

(ii)

As soon as practicable after the end of the fiscal year, the state treasurer shall perform an annual reconciliation of the quarterly pro
‑
rata payments to the general fund under this subsection. If the reconciliation reveals an excess in payments to the general fund, the treasurer shall pay the excess amount from the general fund to the permanent Wyoming mineral trust fund reserve account. If the reconciliation reveals a shortfall in payments to the general fund, the treasurer shall pay the shortfall amount from the permanent Wyoming mineral trust fund reserve account to the general fund.

Section 2
.

This act is intended to clarify and strengthen the state's cash flow capabilities and is not intended to have any effect on the timing or validity of any distribution of funds from the permanent Wyoming mineral trust fund reserve account to the general fund under W.S. 9
‑
4
‑
719(b) prior to the effective date of this act.

Section 3
.

This act is effective July 1, 2021.

(END)

1