2025 25LSO-0278
STATE OF WYOMING Working Draft
0.5
DRAFT ONLY
NOT APPROVED FOR
INTRODUCTION
HOUSE BILL NO.
School generational account.
Sponsored by: Select Committee on Capital Financing &
Investments
A BILL
for
1 AN ACT relating to state funds; creating an inviolate
2 school generational account as a permanent fund within the
3 permanent land fund; creating the school generational
4 income account; providing for the long-term investment of
5 the school generational account as specified; providing for
6 expenditure of the account’s earnings for the benefit of
7 schools; providing an appropriation; and providing for an
8 effective date.
9
10 Be It Enacted by the Legislature of the State of Wyoming:
11
12 W.S. 9-4-227. School generational account.
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1 (a) The school generational account within the
2 permanent land fund, created by W.S. 9-4-204(u)(x) and 9-4-
3 310(a)(xiii), is a permanent fund containing monies that
4 shall be inviolate as perpetual school funds. The account
5 is intended to help replace decreasing future school
6 revenues by taking advantage of the compounding effect of
7 money by utilizing long-term investment strategies that
8 have historically provided higher investment returns.
9
10 (b) Investment of the school generational account
11 shall be in accordance with W.S. 9-4-715(a) and (c) through
12 (e) and W.S. 9-4-716, except that W.S. 9-4-716(e) shall
13 apply to require that the school generational account be
14 invested so that the overall risk profile of the account’s
15 investments shall not materially exceed the risk profile of
16 a reference portfolio that consists of eighty-five percent
17 (85%) global equities and fifteen percent (15%) domestic
18 fixed income investments. In adopting investment policy
19 statements for the school generational account under W.S.
20 9-4-716, the board shall seek to preserve the balance of
21 the account in a manner that strives for the highest
22 possible risk-adjusted total net return consistent with an
23 appropriate level of safety and liquidity, giving
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1 consideration to the account’s potential extended
2 investment period and the extended period during which
3 monies in the account may be ineligible for withdrawal.
4
5 (c) At times determined by the state treasurer,
6 earnings from investment of the school generational account
7 shall be deposited in the school generational income
8 account within the permanent land income fund. Deposited
9 earnings shall be appropriated and expended only pursuant
10 to this section.
11
12 (d) All appropriations and other monies directed to
13 the school generational account shall be credited to the
14 account by the state treasurer. To further the purposes of
15 the school generational account and unless contrary to law,
16 earnings from the investment of monies in the account shall
17 not be expended less than nine (9) years after the monies
18 were credited to the account. For purposes of calculating
19 the nine (9) year waiting period imposed by this subsection
20 and unless otherwise directed by law, all monies credited
21 to the school generational account shall be considered to
22 have been credited on the last day of the fiscal year.
23 This subsection shall not control the time at which
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1 earnings from the school generational account shall be
2 deposited into the school generational income account
3 within the permanent land income account.
4
5 (e) No earnings shall be expended from the school
6 generational income account within the permanent land
7 income fund except upon legislative appropriation and then
8 only for purposes authorized under the public school
9 foundation program.
10
11 Section 2. W.S. 9-4-203(a)(xiii), 9-4-204(u) by
12 creating a new paragraph (x), 9-4-305(b), 9-4-310(a) by
13 creating a new paragraph (xiii), (b) and (c) by creating a
14 new paragraph (vi), 9-4-714(a)(v) and 9-4-716(a)(i) and (e)
15 are amended to read:
16
17 9-4-203. Definitions.
18
19 (a) As used in this act:
20
21 (xiii) "This act" means W.S. 9-4-202 through 9-
22 4-226 9-4-227.
23
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1 9-4-204. Funds established; use thereof.
2
3 (u) Other funds defined as follows shall be
4 classified by the state auditor pursuant to subsections (s)
5 and (t) of this section:
6 ***********************************************************
7 STAFF COMMENT
8 Paragraphs (iv) and (v), below, are included for
9 the Committee’s reference. They will be removed
10 from the final bill since they are not being
11 amended.
12 ***********************************************************
13
14 (iv) Permanent land fund to account for the
15 resources received and held as trustee of the land grants
16 made to the state by the federal government as provided by
17 W.S. 9-4-305(b);
18
19 (v) Permanent land income fund to account for
20 the income from the permanent land fund, land grants and
21 income from other sources as provided by W.S. 9-4-305(c);
22
23 (x) School generational account – to consist of
24 funds appropriated or designated to the account by law, or
25 by gift from whatever source. In accordance with Wyoming
26 Constitution Article 7, Sections 2 and 6, monies within the
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1 account shall not be expended and may be invested in the
2 same manner as other permanent funds of the state and
3 consistent with the additional investment requirements
4 imposed by W.S. 9-4-227. Earnings from the investment of
5 monies within the account shall be distributed and expended
6 as provided by law.
7
8 9-4-305. Disposition of state land revenue.
9
10 (b) Proceeds from the sale of state lands, mineral
11 royalties and any money designated by the Wyoming
12 constitution or Wyoming statutes as collected shall be
13 transmitted to the state treasurer and credited to the
14 proper accounts within the permanent land fund. As
15 authorized by article 7, section 2 of the Wyoming
16 constitution, thirty-three and one-third percent (33 1/3%)
17 of the mineral royalties received from the lease of any
18 school lands shall be deposited into the public school
19 foundation program account. To the extent constitutionally
20 permissible and notwithstanding any other provision of law,
21 at the end of every fiscal year, the state treasurer shall
22 transfer to the corpus of each account within the permanent
23 land fund, except the common school account and school
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1 generational account, from the income earned on the
2 corresponding account within the permanent land fund, to
3 the extent available, an amount as provided by this
4 subsection. In determining the amount to be withheld, the
5 state treasurer shall calculate the fiscal year beginning
6 balance and ignore any appropriations made from the account
7 within that fiscal year. For the fiscal year 2000, he shall
8 transfer an amount equal to five percent (5%) of the
9 inflation rate for the previous twelve (12) month period as
10 determined by the department of administration and
11 information multiplied by the beginning balance of each
12 permanent land fund account, except the common school
13 account. At the end of each succeeding fiscal year, the
14 state treasurer shall increase the amount to be multiplied
15 by that year's inflation rate by five percent (5%) until
16 such time as the multiplier reaches one hundred percent
17 (100%) of the inflation rate, and then multiply that amount
18 by the beginning balance of each permanent land fund
19 account, except the common school account and school
20 generational account.
21
22 9-4-310. Permanent land fund and land income fund
23 accounts.
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1
2 (a) The following accounts within the permanent land
3 fund are established to account for revenue dedicated to
4 certain institutions or for certain purposes accruing from
5 grants of land contained in the Act of Admission or acts of
6 congress, or accruing from provisions of the Wyoming
7 constitution or Wyoming statutes:
8
9 (vii) Common school account;
10
11 (xiii) School generational account.
12
13 (b) No appropriation shall be made from the
14 agricultural college, common school, school generational or
15 university accounts within the permanent land fund.
16
17 (c) The following accounts within the permanent land
18 income fund are established to be expended as provided by
19 law:
20
21 (ii) Common school account;
22
23 (vi) School generational income account.
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1
2 9-4-714. Definitions.
3
4 (a) As used in this act:
5
6 (iv) "Fund" means as defined by W.S. 9-4-
7 203(a)(vii);
8
9 (v) "Permanent funds" means the permanent
10 Wyoming mineral trust fund under W.S. 9-4-204(u)(iii), the
11 Wyoming permanent land fund under W.S. 9-4-204(u)(iv), the
12 excellence in higher education endowment fund under W.S. 9-
13 4-204(u)(vi), the Hathaway student scholarship endowment
14 fund under W.S. 9-4-204(u)(vii), the Hathaway expand
15 Wyoming scholarship endowment fund under W.S. 9-4-
16 204(u)(viii), and the Wyoming's tomorrow scholarship
17 endowment fund under W.S. 9-4-204(u)(ix) and the school
18 generational account under W.S. 9-4-204(u)(x);
19
20 9-4-716. State investment policy; investment
21 consultant.
22
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1 (a) The board, in consultation with the investment
2 funds committee, shall adopt investment policy statements
3 for state funds and shall review those policy statements at
4 least annually. These policy statements shall be subject to
5 the following:
6
7 (i) The board may specify groupings of state
8 funds for which separate investment policy statements are
9 appropriate. At a minimum, those groupings shall include
10 state funds for which there is a trust obligation, short
11 term funds for operations and all other funds. The board
12 may determine criteria under which certain funds shall be
13 separately managed. The school generational account
14 managed under W.S. 9-4-227 and created by W.S. 9-4-
15 204(u)(x) and 9-4-310(a)(xiii) shall be invested under a
16 separate investment policy statement;
17
18 (e) In investing monies of a fund or account
19 which may be invested in stock of a corporation or other
20 equities, the overall risk profile of the investments,
21 excluding any specific public purpose investment authorized
22 or directed by the legislature, shall not materially exceed
23 the risk profile of a reference portfolio that consists of
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1 seventy percent (70%) global equities and thirty percent
2 (30%) domestic fixed income investments. The state
3 treasurer after consultation with the investment funds
4 committee shall submit to the board the committee's
5 recommendations of specific benchmarks for the measurement
6 of the portfolio risk characteristics. The specific
7 benchmarks shall be determined by the board. Any provision
8 of law which restricts or expands the investment of a
9 specific fund or account to a greater degree than the
10 provisions of this subsection shall control over this
11 subsection.
12
13 Section 3. From any monies received by the state of
14 Wyoming from the sale of state school trust lands before
15 December 31, 2025, one hundred million dollars
16 ($100,000,000.00), or as much thereof as becomes available,
17 is appropriated to the school generational account under
18 W.S. 9-4-204(u)(x), 9-4-227 and 9-4-310(a)(xiii), as
19 created by section 1 of this act. This appropriation shall
20 not be transferred or expended for any other purpose.
21 Notwithstanding W.S. 9‑2‑1008, 9‑2‑1012(e) and 9-4-207, this
22 appropriation shall remain in effect and not lapse or
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1 revert at the end of any fiscal period except upon further
2 legislative action.
3
4 Section 4. This act is effective immediately upon
5 completion of all acts necessary for a bill to become law
6 as provided by Article 4, Section 8 of the Wyoming
7 Constitution.
8
9 (END)
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Statutes affected: 25LSO-0278 v0.3: 9-4-716