SF0182 - University endowment fund.
2001 |
State of Wyoming |
01LSO-0636 |
SENATE FILE NO. SF0182
University endowment fund.
Sponsored by: Senator(s) Larson, Anderson, J., Devin, Kunz
and Massie and
Representative(s) Boswell,
Luthi, Nicholas,
Parady, Reese and Tempest
A BILL
for
1 AN ACT relating to the
University of Wyoming endowment
2
challenge program; establishing the endowment account;
3
defining terms; establishing a matching program
4
administered by the state treasurer as specified; providing
5 an
appropriation; and providing for an effective date.
6
7 Be It Enacted by the Legislature of the State of Wyoming:
8
9 Section
1. W.S.
21-16-901 through 21-16-904 are
10 created to read:
11
12 ARTICLE 9
13 UNIVERSITY OF WYOMING ENDOWMENT FUND
14
15 21-16-901. University of Wyoming
endowment challenge
16 program.
Page 1
1
2 The University of
Wyoming endowment challenge program is
3
created.
4
5 21-16-902. Definitions.
6
7 (a) As used in this article:
8
9 (i) "Challenge
account" means the university
10 endowment challenge account established
under W.S.
11 21-16-903;
12
13 (ii) "Permanent
endowment funds managed by the
14 University of Wyoming foundation" means
the endowment funds
15 that are invested by the University of
Wyoming foundation
16 on a permanent basis and regarding which
earnings on those
17 investments are dedicated to be expended
exclusively to
18 benefit and promote the mission, operation
or any program
19 or activity of the University of Wyoming,
including but not
20 limited to professorships and student
scholarships,
21 increases to the corpus of the endowment and
defraying
22 reasonable costs of endowment
administration;
23
Page 2
1 (iii) "Substantial
endowment gift" means an
2
irrevocable gift or transfer to the University of Wyoming
3
foundation of money or other property by a donor where:
4
5 (A) The gift or
the foundation's interest
6 in
the property is conditioned on it being used by the
7 foundation
exclusively for endowment purposes;
8
9 (B) The gift or
property transferred has a
10 fair market value of at least fifty thousand
dollars
11 ($50,000.00); and
12
13 (C) The following apply:
14
15 (I) The gift
was received or the
16 transfer occurred during the donation period
March 1, 2001,
17 through December 31, 2005. Payments made during the
18 donation period are not eligible to be
matched if they are
19 part of a gift for which some payment was
received prior to
20 the donation period;
21
22 (II) If a
commitment to make the gift
23 or transfer was made in writing to the
university
24 foundation, during the donation period March
1, 2001,
Page 3
1
through December 31, 2005, to qualify for the match, the
2 gift
shall actually be received or the transfer shall
3
actually occur not later than the end of the five (5) year
4
collection period ending December 31, 2010.
5
6 21-16-903. University endowment challenge account.
7
8 (a) The
university endowment challenge account is
9
created within the earmarked revenue fund.
10
11 (b) The state
treasurer shall invest amounts
12 deposited within the account in accordance
with law, and
13 all investment earnings shall be credited to
the general
14 fund.
15
16 21-16-904. Endowment challenge fund
matching fund
17 program; matching payments; agreements with university
18 foundation; annual reports.
19
20 (a) The
state treasurer shall administer the matching
21 fund program established under this
section. The following
22 shall apply to the program:
23
Page 4
1 (i) To the
extent that funds are available in
2 the
challenge account, the state treasurer shall match each
3
substantial endowment gift actually received by the
4
University of Wyoming foundation by transferring from the
5
challenge account to the university an amount equal to the
6
amount of the substantial endowment gift. Endowment gifts
7 made
directly to the university shall be endowment gifts to
8 the
foundation for purposes of this section.
The
9
university shall manage both the endowment gifts and the
10 matching funds in the same manner as other
endowment funds,
11 but otherwise subject to the provisions of
this section;
12
13 (ii) The state
treasurer shall make transfers to
14 the university under this section not later
than the end of
15 the calendar quarter following the quarter
during which the
16 gift is received. Where a gift is made through a series of
17 payments or transfers, no matching funds
shall be
18 transferred by the state treasurer until the
total value of
19 all payments or transfers actually received
toward the gift
20 totals at least fifty thousand dollars
($50,000.00).
21 Thereafter, matching funds shall be
transferred as payments
22 or transfers toward that gift are received
by the
23 foundation;
24
Page 5
1 (iii) The
university shall immediately transfer
2 all
matching funds received to the university foundation to
3 be
permanently invested. The university
shall enter into a
4 new
agreement or modify its existing agreement with the
5
University of Wyoming foundation under which the foundation
6
shall manage the matching funds it receives in the same
7
manner as other permanent endowment funds managed by the
8
University of Wyoming foundation.
Only the earnings from
9 the
investment of these funds may be expended.
These
10 earnings shall be expended exclusively for
the purposes of
11 the endowment, including increasing the
balance in the
12 corpus and for reasonable costs of
administration;
13
14 (iv) The state
treasurer shall distribute funds
15 or encumber funds for future distribution in
the case of a
16 written commitment, to match a substantial
endowment gift
17 based on the order in which each substantial
endowment gift
18 is actually received or in which a written
commitment to
19 make a substantial endowment gift is
received by the
20 foundation.
Matching funds shall not be distributed or
21 encumbered in excess of the amount in the
challenge
22 account.
In no event shall matching funds be transferred
23 to the university except to match
substantial endowment
24 gifts actually received. The state treasurer shall rescind
Page 6
1 an
encumbrance if the university notifies him that a donor
2 who
made a commitment will not make a substantial endowment
3
gift that qualifies for matching funds under this section;
4
5 (v) If the
president of the university
6
determines that the purpose of a substantial endowment gift
7 to
the foundation is not consistent with mission or
8
capability of the university, the gift shall not qualify
9 for
the matching program under this section;
10
11 (vi) For the
purpose of calculating the matching
12 amount only, the state treasurer shall use
the value of a
13 substantial endowment gift based on its fair
market value
14 at the time the gift is received by the
university
15 foundation.
The university shall provide evidence of fair
16 market value as the state treasurer requires
for each
17 substantial endowment gift. The state treasurer's office
18 shall not bear any costs associated with
providing
19 evidence;
20
21 (vii) Through the
end of the collection period,
22 the University of Wyoming shall on or before
October 1 of
23 each year submit a report to the state
treasurer from the
24 foundation regarding the endowment matching
program
Page 7
1
established under this section for the preceding fiscal
2
year. The report shall include a
financial summary and a
3
review of the accomplishments resulting from endowment
4
program expenditures. The state
treasurer shall distribute
5 the
report to the governor and the legislature;
6
7 (viii) Any
unexpended funds remaining in the
8
account at the end of the collection period shall revert to
9 the
general fund.
10
11 Section
2. Thirty
million dollars ($30,000,000.00) is
12 appropriated from the general fund
to the university
13 endowment challenge account created
under section 1 of this
14 act. Notwithstanding any other
provision of law, any
15 unexpended funds from this
appropriation shall revert to
16 the general fund on December 31,
2010.
17
18 Section
3. This act is effective
immediately upon
19 completion of all acts necessary for a bill
to become law
20 as provided by Article 4, Section 8 of the
Wyoming
21 Constitution.
22
23 (END)
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