SF0009 - De-earmarking modifications.
2001 |
State of Wyoming |
01LSO-0051 |
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 forty-two million dollars ($142,000,000.00) in any fiscal
14 year. To the extent that deposits
into the account created 15
under subsection (a) of this section exceed one hundred 16
fifty 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
4 Section 2.
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)
12 feet from the earth's surface. Not later than September
13 15, the state
treasurer shall compute actual earnings for
14 the 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
(iii) 2000 Wyoming Session Laws, Chapter
76,
13 Section 300(b)(i), (d) and (e) is repealed as
unnecessary.
14 This repealer shall not affect the validity of
transfers of
15 funds that occurred under those provisions before
July 1,
16 2001.
17
18
(b) 2000 Wyoming Session Laws, Chapter
76, Section
19 300(a)(i) is amended to read:
20
21 Section 300.
22
23
(a) There is appropriated to the general
24 fund:
Page 18
1
2
(i) From the
budget reserve account,
3 seventy-three
million seven hundred sixty-six 4
thousand
eight hundred sixty-one dollars 5
($73,766,861.00)
one hundred twenty-two million
6 four hundred
sixty thousand eight hundred
7 seventy-six
dollars ($122,460,876.00);
8
9
Section 5. W.S. 9-2-1014.1 and 28-12-301 are created
10 to read:
11
12
9-2-1014.1. State budget; requests by
recipients of
13 certain
earmarked funds for additional funding from the
14 budget
reserve account.
15
16
(a) Any state agency that receives
federal mineral
17 royalties or severance tax distributions may request
18 additional funding from the budget reserve account as
19 provided in this section.
20
21
(b) The total amount available for the
purpose of
22 this section shall be the estimated deposits into the
23 budget reserve account for the next biennial budget
period
24 under W.S. 9-4-601(d)(iv) and 39-14-801(c)(ii).
Page 19
1
2
(c) Any state agency eligible to request additional
3 funds from the budget reserve account under this
section
4 shall submit its request as part of the budget
process
5 under W.S. 9-2-1010 through 9-2-1014.
6
7
(d) The governor shall include his recommendations
8 for additional funding for state agencies and
for local
9 governments from the budget reserve account in
his December
10 1 budget recommendation to the legislature. His total
11 recommendations under this section shall not exceed
the
12 total amount determined under subsection (b) of this
13 section.
14
15
(e) To the extent the legislature
appropriates funds
16 under this section from the budget reserve account for
17 local governments, the appropriation shall comply
with and
18 be subject to the following:
19
20
(i) The amount appropriated to local
governments
21 shall not exceed the amount available under
subsection (b)
22 of this section, less appropriations under this
section to
23 state agencies;
24
Page 20
1
(ii) A total amount shall be annually
2 appropriated to the state treasurer to be
distributed to
3 all local governments as follows:
4
5
(A) Twenty-five percent (25%) to counties,
6 in the proportion which the population of the
county bears
7 to total state population;
8
9
(B) Seventy-five percent (75%) to cities
10 and towns, each city and town to receive an amount in
the
11 proportion which the population of the city or town
bears
12 to the population of all cities and towns in Wyoming.
13
14
(iii) The distributions to local
governments
15 under this section shall be made by the state
treasurer no
16 later than October 15, of the fiscal year next
following
17 the fiscal year for which the appropriation is
made. The
18 distributions shall be from revenues actually
recognized in
19 the fiscal year for which the appropriation is
made. Any
20 interest earned on invested funds allocated to local
21 governments under this section shall be retained in
the
22 budget reserve account.
23
Page 21
1
(f) To the extent that actual recognized revenues are
2 less than the estimated deposits referenced in
subsection
3 (b) of this section:
4
5
(i) The distribution of any appropriation
to
6 local governments under this section shall be
reduced by a
7 pro rata amount; and
8
9
(ii) The state auditor shall reduce the
spending
10 authority of any state agency receiving an
appropriation
11 under this section by a pro rata amount.
12
13 (g) For the purpose of this section:
14
15
(i) "Local government" means
any county or
16 municipality;
17
18
(ii) "Population" shall be
determined by resort
19 to the latest federal census as periodically updated
by the
20 bureau of the census;
21
22
(iii) "State agency" means the
department of
23 transportation, the University of Wyoming and the
water
24 development office.
Page 22
1
2 ARTICLE 3
3 REVIEW OF DISTRIBUTION FORMULAE
4
5
28-12-301. Management council review
of state revenue
6
distribution formulae; reports required.
7
8 The management council,
or a joint interim or select
9 committee designated by management council shall
submit a
10 report to the governor and legislature by December 1,
2004,
11 and by December 1 of each fourth year
thereafter,
12 reviewing the distribution formulae for federal
mineral
13 royalties, severance taxes and inheritance taxes. The
14 report shall indicate whether the formulae are
15 understandable to public policy makers, serve the
needs of
16 the citizens of the state and whether the distinction
17 between sustainable revenues and "one-time"
revenues
18 contained therein is reasonable. The report may
contain
19 recommendations for legislation.
20
21 Section 6. The municipal
mineral trust fund is
22 repealed effective July 1, 2001. Not later than December
23 31, 2001, the state treasurer shall distribute all funds
Page 23
1 within the municipal mineral trust fund to cities and
towns
2 in Wyoming as follows:
3
4
(a) Twenty-five percent (25%) shall be distributed
5 equally among all cities and towns in Wyoming;
6
7
(b) Seventy-five percent (75%) shall be distributed
8 to cities and towns in the proportion which the
population
9 of the city or town bears to the population of
all cities
10 and towns in Wyoming, based upon the most recent
federal
11 decennial census.
12
13 Section 7. This act is effective July 1, 2001.
14
15 (END)
Page 24