SF0009 - De-earmarking modifications.
|
2001 |
State of Wyoming |
01LSO-0051.E1 ENGROSSED |
SENATE FILE NO. SF0009
De-earmarking modifications.
Sponsored by: Select De-earmarking Committee
A BILL
for
1 AN ACT relating to the
administration of government;
2
providing for the de-earmarking of certain state revenues;
3
modifying the plan for de-earmarking of federal mineral
4
royalties and severance taxes as specified; consolidating
5
specified state accounts and the distribution of
6
inheritance taxes to more accurately account for state
7
revenues that are sustainable and those that are available
8
on a "one-time" basis; repealing municipal mineral trust
9
fund and distributing existing funds; requiring local
10 government reporting of revenues and
expenditures; making
11 technical corrections; making
conforming amendments;
12 transferring funds and repealing
previous appropriations
13 and fund transfers; and providing
for an effective date.
14
15 Be It Enacted by the Legislature of the State of Wyoming:
16
Page 1
1 Section
1. W.S. 1-42-104(a), 9-1-507(a) by creating a
2
new paragraph (vii) and by creating a new subsection (j),
3
9-4-601(b)(iv)(B), (d)(iii) and by creating a new paragraph
4
(iv), 39-14-801 by creating a new subsection (b) and
5
amending and renumbering subsections (b) and (c) as (c) and
6
(d) and 39-19-111 are amended to read:
7
8 1-42-104. Interfund transfer;
repayment to account;
9 investment
of funds.
10
11 (a) Upon
certification by the governor to the state
12 treasurer that there are inadequate
monies in the local
13 government insurance account to meet
the obligations under
14 W.S. 1-42-103, the state treasurer
shall utilize an
15 interfund transfer from the legislative government royalty 16
impact assistance account created by W.S. 9-4-601(b)(ii) 17 budget reserve account to the local government
insurance
18 account in an accumulated amount not
to exceed one million
19 two hundred sixty-five thousand dollars
($1,265,000.00), to
20 make payments authorized under W.S.
1-42-103 which cannot
21 be paid due to the insufficiency of
any other revenues
22 available. Monies advanced to the
account under this
23 subsection shall be repaid from the
account to the
24 legislative
government royalty impact assistance budget
Page 2
1 reserve account at a rate of interest and upon
terms set by
2
the board of deposits upon the recommendation of the
3
division.
4
5 9-1-507. Examination of books of
state institutions,
6 agencies
and certain districts and entities; independent
7
audit authorized; guidelines.
8
9 (a) The
director of the state department of audit
10 shall:
11
12 (vii) Require each county, city and town in this
13 state
to report to the department revenues received and
14 expenditures made each fiscal year. The reports shall be
15 made not later than September 30 for the prior fiscal
year.
16 The format of the reports required by this paragraph shall
17 be established by the department of audit by rule.
18
19 (j) The director of the department of audit shall
20 certify
to the state treasurer by October 5 of each year, a
21 list of counties, cities and towns which have failed to
22 comply with paragraph (a)(vii) of this section. The state
23 treasurer shall withhold the annual distribution, which
24 would otherwise be made under W.S. 9-2-1014.1, to any
Page 3
1 county, city or town failing to comply with paragraph
2 (a)(vii) of this section. The withheld distribution shall
3 be retained in the budget reserve
account until the
4 director of the department of audit
certifies that the
5 county, city or town has filed the
required report.
6
7 9-4-601. Distribution and use; funds,
accounts,
8 cities
and towns benefited; exception for bonus payments.
9
10 (b) The state
treasurer shall ascertain and withhold
11 all bonus payments received from the
federal government
12 attributable to coal, oil shale or
geothermal leases of
13 federal land within Wyoming and
shall distribute it as
14 follows:
15
16 (iv) For the
fiscal year commencing July 1,
17 1994, and for each fiscal year
thereafter:
18
19 (B) Forty
percent (40%) to the legislative 20
government royalty impact assistance account in the 21
earmarked revenue fund. Revenues received in the 22
legislative government royalty impact assistance account on 23
and after July 1, 1997, shall be transferred to the school 24
capital construction reserve account created under 1996
Page 4
1 Wyoming Session Laws, Chapter 1, Section 303. Revenues 2
received in the school capital
construction reserve account 3
on and after July 1, 1998, shall be
transferred to the 4 school capital construction account established under W.S.
5
21-15-111(a)(i).
6
7 (d) Any revenue
received under subsection (a) of this
8
section in excess of two hundred million dollars
9
($200,000,000.00) shall be distributed as follows:
10
11 (iii) To the legislative government royalty 12
impact
assistance account provided by paragraph (b)(ii) of 13
this section One-third
(1/3) to the school foundation
14 program account; and
15
16 (iv) Two-thirds (2/3) to the budget reserve
17 account.
18
19 39-14-801. Severance tax distributions;
distribution
20 account created; formula.
21
22 (b) [LUST] Before making distributions from the
23 severance
tax distribution account under subsections (c)
24 and (d) of this section, an amount equal to the amount of
Page 5
1 tax collected under W.S. 39-17-104(c) and 39-17-204(b) for
2 the same period shall be distributed
to the corrective
3 action account created by W.S. 35-11-1424
and to the
4 financial responsibility account
created by W.S. 35-11-1427
5 in an inverse proportion to the amount
in the two (2)
6 accounts.
7
8 (b)(c) After
making distributions under subsection
9 (b) of this section, distributions under
subsection (d) of
10 this section shall be made from the severance tax
11 distribution account. The amount of distributions under
12 subsection (d) of this section shall not exceed one hundred
13 fifty million dollars ($150,000,000.00) in any fiscal year.
14 To the extent that deposits into the account created under 15
subsection (a) of this section exceed one hundred fifty 16
million dollars ($150,000,000.00) distributions under
17 subsection (d) of this section would exceed that amount
in
18 any fiscal year, the excess shall be
credited:
19
20 (i) One-third (1/3) to the general fund; and
21
22 (ii) Two-thirds (2/3) to the budget reserve
23 account.
24
Page 6
1 (c)(d) Deposits
into the account created by
2
subsection (a) of this section shall be distributed as
3
follows, subject to subsection subsections (b) and (c)
of
4
this section:
5
6 (i) To the
general fund, forty and twenty-five 7
hundredths percent (40.25%) sixty-three percent (63%);
8
9 (ii) To the budget
reserve account, nineteen and 10
thirty-eight
hundredths percent (19.38%);
11
12 (iii)(ii) To water
development account I under
13 W.S. 41-2-124(a)(i), twelve and thirteen hundredths percent 14
(12.13%) twelve and
eighty-five hundredths percent
15 (12.85%);
16
17 (iv)(iii) To water
development account II under
18 W.S. 41-2-124(a)(ii), one and eighty-six hundredths percent 19
(1.86%) two percent
(2%);
20
21 (v)(iv) To the
highway fund, three and fifty-22
three hundredths percent (3.53%) three and seventy-five
23 hundredths percent (3.75%), except that if the
total
24 unencumbered revenues within the
state park road account
Page 7
1 created
by W.S. 24-14-101 24-14-102 are less than five
2
hundred thousand dollars ($500,000.00) on July 1, 2001 or
3
on July 1 of any even-numbered year thereafter, the state
4
treasurer shall first distribute revenues to that account
5
in an amount equal to five hundred thousand dollars
6
($500,000.00) less the total unencumbered revenues in the
7
account on July 1 of that year;
8
9 (vi)(v) To
counties, seventy-eight hundredths 10
percent (0.78%) seventy-five
hundredths percent (0.75%),
11 subject to the following formula:
12
13 (A) Fifty
percent (50%) of the funds
14 distributed under this paragraph
shall be distributed to
15 the counties in the same proportion
that the population of
16 the county bears to the population
of the state as
17 determined by the most recent
decennial census; and
18
19 (B) Fifty
percent (50%) of the funds
20 distributed under this subsection
shall be distributed to
21 the counties based upon the inverse
of the assessed
22 valuation of each county as computed
under subparagraph
23 (viii)(C)
(vii)(C) of this subsection.
24
Page 8
1 (vii)(vi) To
counties, two and seventy-five 2
hundredths percent (2.75%) three percent (3%), each county
3
to receive an amount in the proportion which the population
4
of the county bears to total state population, population
5
to be determined by resort to the latest federal census as
6
periodically updated by the bureau of the census;
7
8 (viii)(vii) To the road
construction funds of
9
the various counties as provided by W.S. 24-2-110, two and 10
seventy-nine hundredths percent (2.79%) three percent (3%),
11 except that each county's share of
funds under this
12 subsection shall be computed as
follows:
13
14 (A) One-third
(1/3) shall be distributed to
15 each county in the ratio that the
population of the county
16 bears to total state population
based on the most recent
17 decennial federal census;
18
19 (B) One-third
(1/3) shall be distributed to
20 each county in the ratio that the
mileage of county roads
21 in the county bears to total county
roads in Wyoming;
22
23 (C) One-third
(1/3) shall be distributed to
24 each county as follows:
Page 9
1
2 (I) Arrange the
assessed valuation of
3
each county in descending order by county;
4
5 (II) Calculate
the county percentages
6
of assessed valuation relative to total state valuation;
7
8 (III) Calculate
the inverse of the
9
county percentage of total state assessed valuation by
10 dividing one (1) by the percentage computed
in subdivision
11 (C)(II) of this paragraph;
12
13 (IV) Compute
each county share by
14 dividing each inverse calculated
under subdivision (III) of
15 this subparagraph by the total sum
of the inverses
16 calculated under subdivision (III)
of this subparagraph.
17
18 (ix)(viii) To cities
and towns, eight and 19
twenty-four hundredths percent (8.24%) eight and seventy-
20 five hundredths percent (8.75%), each city or town
to
21 receive an amount in the proportion
which the population of
22 the city or town bears to the
population of all cities and
23 towns in Wyoming, population to be
determined by resort to
Page 10
1 the
latest federal census as periodically updated by the
2
bureau of the census;
3
4 (x)(ix) To the
capital construction account, two 5
and seventy-two hundredths percent
(2.72%) two and nine-
6 tenths percent (2.9%), to
be expended for the purposes
7
specified in W.S. 9-4-604(k)(ii).;
8
9 (xi) (LUST) Five and
fifty-seven hundredths 10
percent
(5.57%) to the corrective action account created by 11
W.S. 35-11-1424 and to the financial responsibility account 12
created by W.S. 35-11-1427 in an inverse proportion to the 13
amount in the two (2) accounts.
14
15 39-19-111. Distribution.
16
17 (a) All money
collected under W.S. 39-19-101 through
18 39-19-111 shall be credited as follows:
19
20 (i) The first ten million dollars
21 ($10,000,000.00)
in each fiscal year to the general fund;
22 and
23
Page 11
1 (ii) The remainder to
the budget reserve
2 account.
3
5
6 (a) The legislature intends by the amendments in
this
7
section to simplify the structure of 2000 House Bill 0195
8
as to the general fund. These amendments provide that
9
severance taxes to be credited to the general fund are
10 credited first to the severance tax
distribution account
11 before being credited to the general
fund and also make
12 technical corrections.
13
14 (b) W.S. 39-14-111(b), 39-14-211(c),
(d) and (j),
15 39-14-311(b), 39-14-411(a), 39-14-511(b)
and (d),
16 39-14-611(a), 39-14-711(a) and 39-14-801(a)
are amended to
17 read:
18
19 39-14-111. Distribution.
20
21 (b) A two
percent (2%) tax imposed by W.S.
22 39-14-104(a)(iii) and a one and
one-quarter percent (1.25%)
23 tax imposed by W.S. 39-14-104(b)(ii)
shall be deposited
24 into the general
fund severance tax distribution account.
Page 12
1
2 39-14-211. Distribution.
3
4 (c) Subject to subsection (j) of this section, the
5
state treasurer shall transfer revenue collected from the
6
severance tax imposed by W.S. 39-14-204(a)(iii) into the
7
general fund severance tax distribution account.
8
9 (d) Subject to subsection (j) of this section, the
10 state treasurer shall transfer
revenue collected from the
11 severance tax imposed by W.S. 39-14-204(a)(iv)
to the
12 severance tax distribution account, except that beginning
13 July 1, 2004, one-twelfth (1/12) shall be credited to the
14 permanent mineral trust fund.
15
16 (j) Notwithstanding
any other provision in this
17 section, after June 30, 2002, one-half
(1/2) of all the
18 revenue from the taxes imposed by
W.S. 39-14-204(a)(iii)
19 and (iv) on natural gas produced
from any well completed
20 for production at a depth of less
than two thousand (2,000)
21 feet from the earth's surface shall
be deposited in the
22 permanent Wyoming mineral trust
fund. Revenue shall be 23
transferred to the permanent mineral trust fund annually by 24
September 30 of each year based on taxes collected during
Page 13
1 the previous fiscal year. Distributions shall be made
2 quarterly to the trust fund in an
amount equal to one-
3 fourth (1/4) of the amount estimated
to be earned in the
4 current fiscal year based upon the
most recent consensus
5 revenue estimating group estimates. In
computing
6 distributions, the state treasurer
shall make adjustments
7 to reflect changes in the consensus
revenue estimating
8 group estimates. The oil
and gas conservation commission
9
shall certify to the department of revenue by September 1
10 of each year the amount of natural
gas produced from wells
11 completed at a depth of less than
two thousand (2,000) feet
12 from the earth's surface. Not later than September 15, the
13 state treasurer shall compute actual earnings for the
14 months of the preceding fiscal year for which estimates
15 were used in computing distributions. The state treasurer
16 shall make adjustments to distributions during the current
17 fiscal year in an amount equal to the difference between
18 revenues earned and actual distributions for the preceding
19 fiscal year.
20
21 39-14-311. Distribution.
22
Page 14
1 (b) A two
percent (2%) tax imposed by W.S.
2
39-14-304(a)(ii) shall be deposited into the general
fund 3 severance tax distribution account.
4
5 39-14-411. Distribution.
6
7 (a) As provided
by W.S. 39-14-404(a) 39-14-404, the
8
total severance tax rate for bentonite shall be two percent
9
(2%), and shall be deposited in the general
fund severance
10 tax distribution account.
11
12 39-14-511. Distribution.
13
14 (b) A two
percent (2%) tax imposed by W.S.
15 39-14-504(a)(ii) shall be deposited
into the general fund 16 severance tax distribution account.
17
18 (d) For the
period commencing after January 1, 1995,
19 and ending before March 31, 2003, fifty percent (50%) of 20 the taxes collected
pursuant to W.S. 39-14-505(b) shall be
21 deposited into the budget reserve account and fifty percent 22
(50%) into the general fund severance tax distribution
23 account.
24
Page 15
1 39-14-611. Distribution.
2
3 (a) As provided
by W.S. 39-14-604(a) 39-14-604, the
4
total severance tax rate for sand and gravel shall be two
5
percent (2%), and shall be deposited in the general
fund 6 severance tax distribution account.
7
8 39-14-711. Distribution.
9
10 (a) As provided
by W.S. 39-14-704(a) 39-14-704, the
11 total severance tax rate for other
valuable deposits shall
12 be two percent (2%), and shall be
deposited in the general 13
fund severance tax
distribution account.
14
15 39-14-801. Severance tax distributions;
distribution
16 account created; formula.
17
18 (a) There is
created the severance tax distribution
19 account within the earmarked revenue
fund into which shall
20 be credited revenues from severance
taxes as provided by
21 law. There
is annually appropriated from the general fund 22
to this account an amount equal to severance tax 23
distributions to the general fund under W.S. 39-14-111(b) 24
and (h), 39-14-211(c), 39-14-311(b), 39-14-411(a),
Page 16
1 39-14-511(b), 39-14-611(a) and 39-14-711(a). Interest
on
2
earnings from funds in the account shall be credited to the
3
general fund.
4
5 Section 3. W.S. 9-4-601(b)(ii), 39-14-111(h) and
6
39-14-211(f) and (g) are repealed.
7
8 Section 4. [Conforming language for prior
9
appropriations and fund transfers]
10
11 (a) There is
transferred to the budget reserve
12 account from the statutory reserve
account and the
13 legislative government royalty
impact assistance account
14 all funds in those accounts
effective on June 30, 2001.
15 This transfer is subject to the
following:
16
17 (i) Effective
July 1, 2001, the legislative
18 government royalty impact assistance
account and the
19 statutory reserve account are
deleted;
20
21 (ii) All
appropriations from the legislative
22 government royalty impact assistance
account and the
23 statutory reserve account contained
in legislation enacted
24 during the 2000 and 2001 sessions of
the legislature, or
Page 17
1 from
previous sessions of the legislature to the extent
2
encumbered or otherwise obligated in accordance with law
3
before July 1, 2001, are deemed to be appropriations from
4
the budget reserve account. If any of these appropriated
5
funds are reverted, they shall be credited to the budget
6
reserve account. These appropriations from the budget
7
reserve account are subject to the same terms and
8
conditions as if the legislative government royalty impact
9
assistance account and the statutory reserve account were
10 still in existence.
11
12 Section 5. W.S. 9-2-1014.1 and 28-12-301 are created
13 to read:
14
15 9-2-1014.1. State budget; requests by
recipients of
16 certain earmarked funds for additional
funding from the
17 budget reserve account.
18
19 (a) Any state
agency that receives federal mineral
20 royalties or severance tax
distributions may request
21 additional funding from the budget
reserve account as
22 provided in this section.
23
Page 18
1 (b) The total
amount available for the purpose of
2
this section shall be the estimated deposits into the
3
budget reserve account for the next biennial budget period
4
under W.S. 9-4-601(d)(iv) and 39-14-801(c)(ii).
5
6 (c) Any state
agency eligible to request additional
7
funds from the budget reserve account under this section
8
shall submit its request as part of the budget process
9
under W.S. 9-2-1010 through 9-2-1014.
10
11 (d) The
governor shall include his recommendations
12 for additional funding for state
agencies and for local
13 governments from the budget reserve
account in his December
14 1 budget recommendation to the
legislature. His total
15 recommendations under this section
shall not exceed the
16 total amount determined under
subsection (b) of this
17 section.
18
19 (e) To the
extent the legislature appropriates funds
20 under this section from the budget
reserve account for
21 local governments, the appropriation
shall comply with and
22 be subject to the following:
23
Page 19
1 (i) The amount
appropriated to local governments
2
shall not exceed the amount available under subsection (b)
3
of this section, less appropriations under this section to
4
state agencies;
5
6 (ii) A total
amount shall be annually
7
appropriated to the state treasurer to be distributed to
8
all local governments as follows:
9
10 (A) Twenty-five
percent (25%) to counties,
11 in the proportion which the
population of the county bears
12 to total state population;
13
14 (B) Seventy-five
percent (75%) to cities
15 and towns, each city and town to
receive an amount in the
16 proportion which the population of
the city or town bears
17 to the population of all cities and
towns in Wyoming.
18
19 (iii) The
distributions to local governments
20 under this section shall be made by
the state treasurer no
21 later than October 15, of the fiscal
year next following
22 the fiscal year for which the
appropriation is made. The
23 distributions shall be from revenues
actually recognized in
24 the fiscal year for which the
appropriation is made. Any
Page 20
1 interest
earned on invested funds allocated to local
2
governments under this section shall be retained in the
3
budget reserve account.
4
5 (f) To the extent
that actual recognized revenues are
6
less than the estimated deposits referenced in subsection
7
(b) of this section:
8
9 (i) The
distribution of any appropriation to
10 local governments under this section
shall be reduced by a
11 pro rata amount; and
12
13 (ii) The state
auditor shall reduce the spending
14 authority of any state agency
receiving an appropriation
15 under this section by a pro rata
amount.
16
17 (g) For the purpose of this section:
18
19 (i) "Local
government" means any county or
20 municipality;
21
22 (ii) "Population"
shall be determined by resort
23 to the latest federal census as
periodically updated by the
24 bureau of the census;
Page 21
1
2 (iii) "State
agency" means the department of
3
transportation, the University of Wyoming and the water
4
development office.
5
6 ARTICLE 3
7 REVIEW OF DISTRIBUTION FORMULAE
8
9 28-12-301. Legislative review of state
revenue
10 distribution formulae; reports required.
11
12 The joint revenue interim committee shall
submit a report
13 to the governor and legislature by
December 1, 2004, and by
14 December 1 of each fourth year
thereafter, reviewing the
15 distribution formulae for federal
mineral royalties,
16 severance taxes and inheritance
taxes. The report shall
17 indicate whether the formulae are
understandable to public
18 policy makers, serve the needs of
the citizens of the state
19 and whether the distinction between
sustainable revenues
20 and "one-time" revenues
contained therein is reasonable.
21 The report may contain
recommendations for legislation.
22
23 Section 6. The municipal mineral trust fund is
24 repealed effective July 1, 2001. Not
later than December
Page 22
1 31, 2001, the state
treasurer shall distribute all funds
2
within the municipal mineral trust fund to cities and towns
3
in Wyoming as follows:
4
5 (a) Twenty-five
percent (25%) shall be distributed
6
equally among all cities and towns in Wyoming;
7
8 (b) Seventy-five
percent (75%) shall be distributed
9
to cities and towns in the proportion which the population
10 of the city or town bears to the
population of all cities
11 and towns in Wyoming, based upon the
most recent federal
12 decennial census.
13
14 Section 7. This act is effective July 1, 2001.
15
16 (END)
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