SF0184 - Community college endowment fund-2.

2001

State of Wyoming

01LSO-0648.E1

ENGROSSED

SENATE FILE NO. SF0184

Community college endowment fund-2.

Sponsored by: Senator(s) Anderson, J., Boggs and Vasey and
Representative(s) Hageman, Nagel, Nelson and
Parady

A BILL

for

1 AN ACT relating to the community college endowment
2 challenge fund; establishing the endowment fund; providing
3 for separate accounts for each community college; defining
4 terms; imposing conditions and limitations; establishing a
5 matching program based upon gifts received by each
6 college's foundation; providing an appropriation; and
7 providing for an effective date.

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

11 Section 1. W.S. 21-16-901 through 21-16-904 are
12 created to read:

14 ARTICLE 9

15 WYOMING COMMUNITY COLLEGE ENDOWMENT CHALLENGE PROGRAM

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1 21-16-901. Wyoming community college endowment
2 challenge program.

4 The Wyoming community college endowment challenge program
5 is created.

7 21-16-902. Definitions.

9 (a) As used in this article:

11 (i) "Challenge fund" means the community college
12 endowment challenge fund created under this article;

14 (ii) "Endowment gift" means an irrevocable gift
15 or transfer to a Wyoming community college foundation of
16 money or other property, whether real, personal, tangible
17 or intangible, and whether or not the donor or transferor
18 retains an interest in the property, where the gift or the
19 foundation's interest in the property is required to be
20 used by the foundation exclusively for endowment purposes,
21 where:

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1 (A) The gift was received or the transfer
2 occurred during the period July 1, 2001, through June 30,
3 2006; or

5 (B) A commitment to make the gift or
6 transfer was made in writing to the respective community
7 college foundation, which commitment was received during
8 the period July 1, 2001, through June 30, 2006, and the
9 gift was received or the transfer occurred not later than
10 December 31, 2007;

12 (C) The gift or transfer has a fair market
13 value of not less than two hundred dollars ($200.00).

15 (iii) "Foundation" means an organization
16 established for each community college that among other
17 purposes, exists to generate additional revenues for
18 community college programs and activities;

20 (iv) "Permanent endowment funds managed by a
21 Wyoming community college foundation" means the endowment
22 funds that are invested by the respective Wyoming community
23 college foundation on a permanent basis and the earnings on
24 those investments are dedicated to be expended exclusively

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1 to benefit and promote the mission, operation or any
2 program or activity of the respective community college,
3 including but not limited to professorships and student
4 scholarships, increases to the corpus of the endowment and
5 defraying reasonable costs of endowment administration.

7 21-16-903. Wyoming community college endowment
8 challenge fund.

10 (a) The Wyoming community college endowment challenge
11 fund is created and shall consist of seven (7) separate
12 accounts, one (1) account for each Wyoming community
13 college.

15 (b) The state treasurer shall invest funds within the
16 fund created under subsection (a) of this section and shall
17 deposit the earnings from fund investments to the general
18 fund.

20 21-16-904. Endowment challenge fund matching program;
21 matching payments; agreements with foundations; annual
22 reports.

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1 (a) To the extent funds are available in the separate
2 account of any community college within the endowment
3 challenge fund, the state treasurer shall match endowment
4 gifts actually received by that community college's
5 foundation. A match shall be paid under this subsection by
6 the state treasurer at the time any accumulated amounts
7 actually received by a community college foundation total
8 ten thousand dollars ($10,000.00) or more. The match shall
9 be made by transferring from the separate challenge fund
10 account to the appropriate community college an amount
11 equal to the amount accumulated by its foundation. The
12 recipient community college shall immediately transfer
13 matching funds received under this subsection to the
14 community college foundation.

16 (b) Each community college district shall enter into
17 an agreement with its foundation under which the foundation
18 shall manage the matching funds received under subsection
19 (a) of this section in the same manner as other permanent
20 endowment funds are managed by its foundation, including
21 the permanent investment of funds, maintenance of the fund
22 corpus as inviolate and the expenditure of fund earnings
23 for endowment purposes only.

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1 (c) Earnings from endowment funds established with
2 matching funds under this section shall be expended only
3 for the purpose of the endowment, including increasing the
4 balance in the fund corpus and reasonable costs of
5 administration.

7 (d) The state treasurer shall make transfers to the
8 appropriate community college under this section not later
9 than the end of the calendar quarter following the quarter
10 during which foundation gifts total at least ten thousand
11 dollars ($10,000.00). If gifts are made through a series of
12 payments or transfers, no matching funds shall be
13 transferred under this section until the total value of all
14 payments or transfers actually received totals at least ten
15 thousand dollars ($10,000.00).

17 (e) Matching funds paid under this section shall not
18 be distributed to or encumbered by any community college
19 foundation in excess of the amount in the challenge fund
20 account for that college. Matching funds shall not be
21 transferred to any community college by the state treasurer
22 except to match gifts actually received by its foundation.

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1 (f) If the president of any community college
2 determines that the purpose of an endowment gift to its
3 foundation is not consistent with the mission or capability
4 of that college, the gift shall not qualify as matching
5 funds under this section.

7 (g) For the purpose of computing the matching amount,
8 the state treasurer shall use the value of an endowment
9 gift based upon its fair market value at the time the gift
10 is received by the community college foundation. The
11 community college shall provide evidence of fair market
12 value for any gift if requested by the state treasurer and
13 shall fund the cost of providing any requested evidence.

15 (h) Each community college shall on or before October
16 1 of each year submit a report to the state treasurer from
17 its foundation on the endowment matching program under this
18 section for the preceding fiscal year. The report shall
19 include a financial summary and a review of the
20 accomplishments resulting from endowment program
21 expenditures. The report required under this subsection
22 shall be for each applicable fiscal year through June 30,
23 2008.

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1 Section 2.

3 (a) Thirty-five million dollars ($35,000,000.00) is
4 appropriated from the general fund to the community college
5 endowment challenge fund as created under section 1 of this
6 act. Notwithstanding any other provision of law, any
7 unexpended funds from the amount appropriated under this
8 subsection shall revert to the budget reserve account on
9 July 1, 2008.

11 (b) The amount appropriated into the challenge fund
12 under subsection (a) of this section shall be equally
13 deposited into each of the seven (7) separate accounts
14 created within the fund pursuant to section 1 of this act.

16 Section 3. This act is effective July 1, 2001.

18 (END)

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