SF0182 - University endowment fund.

 

2001

State of Wyoming

01LSO-0636

 

 

 

SENATE FILE NO.  SF0182

 

 

University endowment fund.

 

Sponsored by:

 

 

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 

 

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 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,

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 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 

 

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 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 

 

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 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

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 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

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 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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