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25LSO-0278
2025
STATE OF WYOMING
25LSO-0278
Introduced
2.0
HOUSE BILL NO. HB0095
School generational account.
Sponsored by: Select Committee on Capital Financing & Investments
A BILL
for
AN ACT relating to state funds; creating an inviolate school generational account within the permanent land fund; creating the school generational income account; providing for the long-term investment of the school generational account as specified; providing for expenditure of the account's earnings for the benefit of schools; providing an appropriation; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 9
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4
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227 is created to read:
9
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4
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227.
School generational account
.
(a)
The school generational account within the permanent land fund, created by W.S. 9
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4
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310(a)(xiii), is a permanent fund containing monies that shall be inviolate as perpetual school funds. The account is intended to increase revenues by taking advantage of the compounding effect of money and utilizing long
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term investment strategies that have historically provided higher investment returns.
(b)
Investment of the school generational account shall be in accordance with W.S. 9
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715(a) and (c) through (e) and W.S. 9
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716, except that W.S. 9
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716(e) shall apply to require that the school generational account be invested so that the overall risk profile of the account's investments shall not materially exceed the risk profile of a reference portfolio that consists of eighty
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five percent (85%) private equity and fifteen percent (15%) private credit investments.
In adopting investment policy statements for the school generational account under W.S. 9
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716, the board shall seek to preserve the balance of the account in a manner that strives for the highest possible risk
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adjusted total net return consistent with an appropriate level of safety and liquidity, giving consideration to the account's potential extended investment period and the extended period during which monies in the account may be ineligible for withdrawal
.
(c)
At times determined by the state treasurer, earnings from investment of the school generational account shall be deposited in the school generational income account within the permanent land income fund.
Earnings deposited in the school generational income account shall be appropriated and expended only pursuant to this section.
(d)
All appropriations and other monies directed to the school generational account shall be credited to the account by the state treasurer.
To further the purposes of the school generational account and unless contrary to law, earnings from the investment of monies in the account shall be deposited into the school generational income account but shall not be expended from the income account less than twenty
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two (22) years after the first date that monies are credited to the school generational account.
(e)
No earnings from the school generational account that are deposited into the school generational income account shall be expended from the school generational income account except upon legislative appropriation and then only for purposes authorized under the public school foundation program. Any appropriation of monies in the school generational income account on and after the date appropriations are allowed under subsection (d) of this section shall be executed in consultation with the state treasurer and in a manner that allows for the prudent generation of the appropriated earnings giving due regard to the consequences of realizing earnings from the types of investments in which the school generational account is invested.
Section 2
.
W.S. 9
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203(a)(xiii), 9
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305(b), 9
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310(a) by creating a new paragraph (xiii), (b) and (c) by creating a new paragraph (vi) and 9
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4
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716(e) are amended to read:
9
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203.
Definitions
.
(a)
As used in this act:
(xiii)
"This act" means W.S. 9
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202 through
9
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226
9
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4
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227
.
9
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4
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305.
Disposition of state land revenue
.
(b)
Proceeds from the sale of state lands, mineral royalties and any money designated by the Wyoming constitution or Wyoming statutes as collected shall be transmitted to the state treasurer and credited to the proper accounts within the permanent land fund. As authorized by article 7, section 2 of the Wyoming constitution, thirty
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three and one
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third percent (33 1/3%) of the mineral royalties received from the lease of any school lands shall be deposited into the public school foundation program account. To the extent constitutionally permissible and notwithstanding any other provision of law, at the end of every fiscal year, the state treasurer shall transfer to the corpus of each account within the permanent land fund, except the common school account
and school generational account
, from the income earned on the corresponding account within the permanent land fund, to the extent available, an amount as provided by this subsection.
In determining the amount to be withheld, the state treasurer shall calculate the fiscal year beginning balance and ignore any appropriations made from the account within that fiscal year. For the fiscal year 2000, he shall transfer an amount equal to five percent (5%) of the inflation rate for the previous twelve (12) month period as determined by the department of administration and information multiplied by the beginning balance of each permanent land fund account, except the common school account. At the end of each succeeding fiscal year, the state treasurer shall increase the amount to be multiplied by that year's inflation rate by five percent (5%) until such time as the multiplier reaches one hundred percent (100%) of the inflation rate, and then multiply that amount by the beginning balance of each permanent land fund account, except the common school account
and school generational account
.
9
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4
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310.
Permanent land fund and land income fund accounts
.
(a)
The following accounts within the permanent land fund are established to account for revenue dedicated to certain institutions or for certain purposes accruing from grants of land contained in the Act of Admission or acts of congress, or accruing from provisions of the Wyoming constitution or Wyoming statutes:
(xiii)
School generational account.
(b)
No appropriation shall be made from the agricultural college, common school
, school generational
or university accounts within the permanent land fund.
(c)
The following accounts within the permanent land income fund are established to be expended as provided by law:
(vi)
School generational income account.
9
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716.
State investment policy; investment consultant
.
(e)
In investing monies of a fund or account which may be invested in stock of a corporation or other equities, the overall risk profile of the investments, excluding any specific public purpose investment authorized or directed by the legislature,
shall not materially exceed the risk profile of a reference portfolio that consists of seventy percent (70%) global equities and thirty percent (30%) domestic fixed income investments. The state treasurer after consultation with the investment funds committee shall submit to the board the committee's recommendations of specific benchmarks for the measurement of the portfolio risk characteristics. The specific benchmarks shall be determined by the board. Any provision of law which restricts
or expands
the investment of a specific fund or account to a greater degree than the provisions of this subsection shall control over this subsection.
Section 3
.
From any monies received by the state of Wyoming from the sale of state school trust lands before December 31, 2025, one hundred million dollars ($100,000,000.00), or as much thereof as becomes available, is appropriated to the school generational account under W.S. 9
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227 and 9
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310(a)(xiii), as created by section 1 of this act.
This appropriation shall not be transferred or expended for any other purpose.
Notwithstanding W.S. 9‑2‑1008, 9‑2‑1012(e) and 9
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4
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207, this appropriation shall remain in effect and not lapse or revert at the end of any fiscal period except upon further legislative action.
Section 4
.
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)
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HB0095