State budgeting and reserves-general funds.

24LSO-0245
2024
STATE OF WYOMING
24LSO-0245
Numbered
2.0

HOUSE BILL NO. HB0056

State budgeting and reserves-general funds.

Sponsored by: Select Committee on Capital Financing & Investments

A BILL

for

AN ACT relating to public funds; amending appropriations, loan authority, distributions and transfers of funds as specified; modifying the distribution of revenues as specified; removing encumbrances from specified accounts; eliminating specified guarantees from accounts; specifying the distribution of excess funds as specified; modifying and limiting distributions from reserve accounts as specified; amending and limiting the spending authorization and permissible uses of the legislative stabilization reserve account; making conforming amendments; repealing obsolete language; and providing for an effective date.

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

Section 1.

W.S. 9
‑
4
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722 is created to read:

9
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4
‑
722.

Permanent Wyoming mineral trust fund spending policy; legislative stabilization reserve account guarantee; transfers.

(a)

The annual spending policy for the permanent Wyoming mineral trust fund is, for each fiscal year, an amount equal to five percent (5%) of the previous five (5) year average market value of the fund, calculated from the first day of the fiscal year.

(b)

Beginning July 1, 2026 for fiscal year 2027 and for each fiscal year thereafter, the state treasurer shall transfer the investment earnings from the permanent Wyoming mineral trust fund under W.S. 9
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4
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204(u)(iii) in excess of the spending policy established in subsection (a) of this section from the general fund to the legislative stabilization reserve account. The transfer shall be credited to the legislative stabilization reserve account by the state treasurer as soon as practicable after the end of the fiscal year but not later than ninety (90) days after the end of the fiscal year.

(c)

Beginning July 1, 2026 for fiscal year 2027 and for each fiscal year thereafter:

(i)

To the extent funds are available and only if investment earnings from the permanent Wyoming mineral trust fund are insufficient to meet the annual spending policy amount specified in subsection (a) of this section, the state treasurer shall transfer unobligated funds from the legislative stabilization reserve account to the general fund in an amount equal to the amount the investment earnings from the permanent Wyoming mineral trust fund are insufficient to meet the annual spending policy amount specified in subsection (a) of this section;

(ii)

To the extent funds are available and only if investment earnings from the permanent Wyoming mineral trust fund are insufficient to meet the annual spending policy amount specified in subsection (a) of this section and when the balance of the legislative stabilization reserve account is zero dollars ($0.00), the state treasurer shall transfer unobligated funds from the permanent Wyoming mineral trust fund reserve account to the general fund in an amount equal to the amount the investment earnings from the permanent Wyoming mineral trust fund are insufficient to meet the annual spending policy amount specified in subsection (a) of this section, less any funds transferred to the general fund under paragraph (i) of this subsection.

(d)

In any fiscal year or fiscal biennium, funds to be deposited to an account under subsection (b) of this section may be deposited to a different fund or account as specified by a general appropriations bill for state government as determined by the legislature to be necessary to alleviate a budget shortfall or structural budget deficit as defined by W.S. 9
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2
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1002, or to provide appropriations to maintain services as determined by the legislature.

Section 2.

W.S. 9
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2
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1014.3(a), 9
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4
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219(a) and by creating a new subsection (d), 9
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4
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714(a)(viii), 9
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4
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715(q)(i) by creating a new subparagraph (C) and by amending and renumbering (C) as (D), 9
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4
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719(a)(intro), by creating a new paragraph (i), by renumbering (i) through (iii) as (ii) through (iv), (b)(intro) and (p) and 39
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14
‑
801(d)(intro) are amended to read:

9
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2
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1014.3.

Appropriation for public welfare emergencies; notification to legislature; legislative action.

(a)

Beginning July 1, 2021, as of the first day of each fiscal year, there is appropriated ten million dollars ($10,000,000.00) from the
legislative stabilization reserve account
general fund
. The appropriation may be allocated by the governor and shall only be expended as authorized by the governor for public welfare emergencies as defined in W.S. 9
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2
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1002(a)(xxv). The governor's office shall provide the notice required under W.S. 9
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2
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1005(b)(ii)(A) and (B) for any expenditure under this section in excess of one hundred thousand dollars ($100,000.00).

9
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4
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219.

Legislative stabilization reserve account created; purposes; obligations; restrictions.

(a)

The legislative stabilization reserve account created by 2005 Wyoming Session Laws, Chapter 191, Section 4, Section 301(d) is continued and codified.

Funds within the account shall only be expended by legislative appropriation
, subject to this section
. All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
‑
4
‑
715(a), (d), (e) and (q) and all investment earnings from the account shall be credited to the general fund.

(d)

Beginning July 1, 2026, no appropriation, loan or transfer shall be made from the legislative stabilization reserve account except as provided in this subsection. Appropriations, loans or transfers from the legislative stabilization reserve account shall only be made in accordance with the following:

(i)

Appropriations or transfers may be made to:

(A)

Any permanent fund as defined by W.S. 9
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4
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714(a)(v);

(B)

The general fund in accordance with W.S. 9
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4
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722.

(ii)

Loans may be made for any purpose for which a loan was authorized by law to be made from the legislative stabilization reserve account before July 1, 2026.

9
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4
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714.

Definitions.

(a)

As used in this act:

(viii)

"This act" means W.S. 9
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4
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714 through
9
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4
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721
9
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4
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722
.

9
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4
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715.

Permissible investments.

(q)

The state treasurer, or his designee, which shall be registered under the Investment Advisor's Act of 1940 as amended if required to be registered by the terms of that act as amended shall invest the legislative stabilization reserve account created in W.S. 9
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4
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219 in a manner to obtain the highest net return possible subject to the following:

(i)

Investments shall be made in accordance with investment policy statements adopted by the board under W.S. 9
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4
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716.

In adopting investment policy statements for the legislative stabilization reserve account, the board shall seek to preserve the balance of the account as necessary to address:

(C)

The need to make any transfers from the legislative stabilization reserve account in accordance with W.S. 9
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4
‑
722;

(C)
(D)

Other emergencies and needs identified or authorized by the legislature under Wyoming statutes and session laws
, subject to W.S. 9
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4
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219(d)
.

9
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4
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719.

Investment earnings; spending policies established; permanent and reserve funds.

(a)

The purpose of
subsection (b) of
this section
and W.S. 9
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4
‑
722
is to establish
a
guidance for
spending
policy

for
permanent Wyoming mineral trust fund investment
earnings
on permanent fund investments
to provide, in descending order of importance:

(i)

A maximum amount of earnings that may be expended in a fiscal year;

(i)
(ii)

Consistent, sustainable flow of earnings for expenditure over time;

(ii)
(iii)

Protection of the corpus of the permanent funds against inflation; and

(iii)
(iv)

To the extent practicable, increases in earnings available for expenditure to offset the effects of inflation.

(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
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4
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.

Except for funds specified by the legislature that guarantee the
obligations of permanent Wyoming mineral trust fund investment earnings and funds to be transferred into the permanent Wyoming mineral trust
required transfers from the legislative stabilization reserve account to the general
fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund.
Beginning July 1, 2021 for fiscal year 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 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 paragraphs (i) and (ii) of this subsection, revenues in this account in excess of two hundred forty
‑
five percent (245%) 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:

(p)

Annually, not later than November 1, the state treasurer, in consultation with the state loan and investment board, shall provide a recommendation to the select committee on capital financing and investments regarding modifications to the spending policy amounts contained in this section
and W.S. 9
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4
‑
722
. The recommendations shall be consistent with the purposes specified in subsection (a) of this section. The select committee on capital financing and investments shall annually submit a recommendation to all members of the legislature before the convening of the session regarding modifications to the spending policy amounts.

39
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14
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801.

Severance tax distributions; distribution account created; formula.

(d)

After making distributions pursuant to subsections (b), (c), (f) and (j) of this section, distributions under subsection (e) of this section shall be made from the severance tax distribution account. The amount of distributions under subsection (e) of this section shall not exceed one hundred fifty
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five million dollars ($155,000,000.00) in any fiscal year. To the extent that distributions under subsection (e) of this section would exceed that amount in any fiscal year,
except as provided in subsections (g), (h) and (k) of this section,
the excess shall be credited
:

to the general fund.

Section 3.

W.S. 9
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4
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719(a)(iii) and (iv), as renumbered by section 2 of this act, (b)(i), (ii), (c), (d), (q) and (s) is repealed.

Section 4
.

This act is effective July 1, 2026.

(END)

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HB0056