HJ0005 • 2022

Permanent Mineral Trust Fund-investments and distributions.

A JOINT RESOLUTION proposing to amend the Wyoming Constitution to modify and modernize the permanent Wyoming mineral trust fund; requiring that all fund earnings be transferred to a separate earnings fund; providing for the expenditure of the fund's earnings; and requiring that the Legislature provide a means for making whole investment and loan losses to the corpus of the fund.

Budget Land Taxes

Did Not Pass

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

Sponsor: Cap Fin & Inv
Last action: 2022-03-08
Official status: inactive
Effective date: 3/1/2022

Plain English Breakdown

The official source material does not provide details on specific spending limits or loan conditions, leaving these aspects open for interpretation and future legislation.

Permanent Mineral Trust Fund Changes

This resolution proposes to change Wyoming's constitution by updating rules for the Permanent Wyoming Mineral Trust Fund, including how its earnings are managed and used.

What This Bill Does

Proposes changes to the Wyoming Constitution about the Permanent Wyoming Mineral Trust Fund (PWMTF).
Requires that all fund earnings be moved into a separate earnings fund.
Sets rules for spending the earnings from this new fund, limiting how much can be spent each year and under what conditions.
Adds requirements for the Legislature to fix any losses in the main trust fund caused by investments or loans.

Who It Names or Affects

The Wyoming Legislature, as they would need to create laws about how the earnings are spent and managed.
People who benefit from the trust fund's investments and distributions.

Terms To Know

Permanent Wyoming Mineral Trust Fund (PWMTF): A special fund that holds money from mineral taxes for future use by Wyoming residents.
Earnings: Money gained from investments made with the trust fund's money.

Limits and Unknowns

The bill did not pass and was voted down in the Senate Committee of the Whole.
It is unclear how much impact this would have on current uses of the PWMTF funds.
Details about specific spending limits and loan conditions are left to future legislation.

Amendments

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

HJ0005H3001

3rd reading • Representative Gray

Corrected, Failed

Plain English: The amendment modifies the bill by adding provisions related to distribution and reversion, setting limitations on uses of earnings, specifying loan limits, and detailing requirements for distributing fund earnings.

Adds language about distribution and reversion after 'expenditure' in the bill text.
Inserts new sections that limit how earnings can be used and specify a cap on loans from the fund.
Modifies investment rules to include risk management by the state treasurer.
Deletes certain phrases related to holding or distributing funds, and adds specific distribution requirements based on the Permanent Fund's market value.

The amendment text includes complex financial terms that may be hard for some readers to understand fully without additional context.

HJ0005SS001

Standing Committee • Senate Appropriations Committee

Adopted

Plain English: The amendment adds restrictions to how the separate earnings fund can be used and requires a two-thirds majority vote for any changes in spending percentages after July 1, 2023.

Prohibits the use of the separate earnings fund for loans, issuing bonds, or providing guarantees.
Requires a two-thirds (2/3) vote from both houses of the Wyoming Legislature to change the percentage of earnings distributed from the separate earnings fund after July 1, 2023.

The amendment does not specify what happens if the required two-thirds majority is not achieved for changes in spending percentages.

Bill History

2022-03-08 Senate
S COW:Failed 13-16-1-0-0
2022-03-04 Senate
S Placed on General File
2022-03-04 Senate
S02 - Appropriations:Recommend Amend and Do Pass 4-1-0-0-0
2022-02-24 Senate
S Introduced and Referred to S02 - Appropriations
2022-02-24 Senate
S Received for Introduction
2022-02-24 House
H 3rd Reading:Passed 44-14-2-0-0
2022-02-23 House
H 3rd Reading:Laid Back
2022-02-22 House
H 3rd Reading:Laid Back
2022-02-21 House
H 2nd Reading:Passed
2022-02-18 House
H COW:Passed
2022-02-17 House
H Placed on General File
2022-02-17 House
H02 - Appropriations:Recommend Do Pass 7-0-0-0-0
2022-02-16 House
H Introduced and Referred to H02 - Appropriations 56-3-1-0-0
2022-02-15 House
H Received for Introduction
2022-02-14 LSO
Bill Number Assigned

Current Bill Text

Read the full stored bill text

22LSO-0307
2022
STATE OF WYOMING
22LSO-0307
Introduced
2.0

House Joint Resolution NO. HJ0005

Permanent Mineral Trust Fund-investments and distributions.

Sponsored by: Select Committee on Capital Financing & Investments

A JOINT RESOLUTION

for

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 15, Section 19 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 15, Section 19.

Mineral excise tax; distribution
.

The Legislature shall provide by law for an excise tax on the privilege of severing or extracting minerals, of one and one-half percent (1

1/2%) on the value of the gross product extracted. The minerals subject to such excise tax shall be coal, petroleum, natural gas, oil shale, and such other minerals as may be designated by the Legislature. Such tax shall be in addition to any other excise, severance or ad valorem tax. The proceeds from such tax shall be deposited in the Permanent Wyoming Mineral Trust Fund.
The
This Permanent F
und, including all monies deposited in the
Permanent F
und from whatever source, shall remain inviolate
and the Legislature shall prescribe by law the manner, means and timing for supplying losses to the Permanent Fund
. The monies in the
Permanent F
und shall be invested as prescribed by the Legislature and all
income from fund investments
investment
earnings
,
which may include both realized and unrealized
gains as prescribed by the Legislature,
shall be
deposited
credited
by the State Treasurer
in the general fund
to a separate earnings fund
on
not less than
an annual basis.

The separate earnings fund may be invested, held or distributed as prescribed by the Legislature.

The Legislature may
also
specify by law
,
conditions and terms under which monies in the
Permanent F
und may be loaned to political subdivisions of the state.
The Legislature shall prescribe by law the manner, means and timing for supplying losses to the Permanent Fund from loans made to political subdivisions.

Section 2.

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

The Permanent Wyoming Mineral Trust Fund (PWMTF) is one of Wyoming's permanent funds that holds public money for the benefit of current and future generations.

Monies in the PWMTF can be invested and loaned to political subdivisions.

This amendment would clarify the "inviolate" nature of the PWMTF by specifying that any investment or loan losses to the PWMTF's corpus must be made whole. The Legislature would be required to adopt laws to provide for the means and timing for doing so.

The amendment would also require that all
earnings from PWMTF investments be deposited to a separate earnings fund.

Currently, the constitution specifies the disposition of PWMTF investment income but does not specify the use or disposition of investment earnings.

(END)

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HJ0005