WORKING DRAFT

SENATE JOINT RESOLUTION NO.

Permanent fund investment earnings.

Sponsored by: Select Committee on Capital Financing and Investments

A BILL

for

A JOINT RESOLUTION proposing to retain a portion of investment earnings from funds attributable to school trust lands and from earnings from the Permanent Wyoming Mineral Trust Fund within the appropriate perpetual fund.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF WYOMING, two-thirds of all the members of the two houses, voting separately, concurring therein:

Section 1. The following proposal to amend Wyoming Constitution, Article 7, Section 2 and Article 15, Section 19 is proposed for submission to the electors of the State of Wyoming at the next general election for approval or rejection to become valid as a part of the Constitution if ratified by a majority of the electors at the election:

Article 7, Section 2. School revenues.

The following are declared to be perpetual funds for school purposes, of which the annual income only can be appropriated, towit: Such per centum as has been or may hereafter be granted by congress on the sale of lands in this state; all moneys arising from the sale or lease of sections number sixteen and thirty-six in each township in the state, and the lands selected or that may be selected in lieu thereof; the proceeds of all lands that have been or may hereafter be granted to this state, where by the terms and conditions of the grant, the same are not to be otherwise appropriated; the net proceeds of lands and other property and effects that may come to the state by escheat or forfeiture, or from unclaimed dividends or distributive shares of the estates of deceased persons; all moneys, stocks, bonds, lands and other property now belonging to the common school funds. Provided, that the rents for the ordinary use of said lands shall be applied to the support of public schools and, when authorized by general law, not to exceed thirty-three and one-third (33 1/3) per centum of oil, gas, coal, or other mineral royalties arising from the lease of any said school lands may be so applied. Provided further that beginning with the fiscal year commencing July 1, 2010 and each fiscal year thereafter, from the total annual income otherwise available for appropriation under this section there shall be deducted and retained within the perpetual fund an amount equal to the balance of the fund as of the first day of the fiscal year multiplied by the annual inflation rate, as provided by law.

Article 15, Section 19. Mineral excise tax; distribution.

The Legislature shall provide by law for an excise tax on the privilege of severing or extracting minerals, of one and one-half percent (1 1/2%) on the value of the gross product extracted. The minerals subject to such excise tax shall be coal, petroleum, natural gas, oil shale, and such other minerals as may be designated by the Legislature. Such tax shall be in addition to any other excise, severance or ad valorem tax. The proceeds from such tax shall be deposited in the Permanent Wyoming Mineral Trust Fund, which fund shall remain inviolate. The monies in the fund shall be invested as prescribed by the Legislature and, subject to the limitations of this section, all income from fund investments shall be deposited by the State Treasurer in the general fund on an annual basis. The Legislature may also specify by law, conditions and terms under which monies in the fund may be loaned to political subdivisions of the state. Beginning with the fiscal year commencing July 1, 2010 and each fiscal year thereafter, the amount of income deposited in the general fund under this section shall reduced by an amount equal to the balance of the trust fund as of the first day of the fiscal year multiplied by the annual inflation rate, as provided by law. Any income exceeding the amount deposited in the general fund shall be retained in the trust fund.

Section 2. The secretary of state shall endorse the following statement on the proposed amendment:

This amendment would retain within the Permanent Wyoming Mineral Trust Fund a portion of annual investment earnings. It would also retain within the perpetual fund for schools, a portion of annual earnings attributable to school trust lands. The amount retained would be the beginning balance of each fund multiplied by an inflation factor determined by the legislature. Retaining the funds would increase the perpetual funds and decrease the amount available for appropriation for that year.

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