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SF 70

Investment modernization-state nonpermanent funds.

2025 Regular Session

SF 70 allows two state nonpermanent funds (Cultural and Wildlife-NR Trusts) to exit inviolate status and use long-term investments with 5-year average spending: 3% and 4% respectiv

Assigned Chapter Number 149
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Bill Summary · SF 70

Summary — SF 70: “Investment modernization — state nonpermanent funds” (Enrolled Act No. 84 / Ch. 149)

Status: Enrolled/Chapter 149 (Signed by Governor, March 2025)
Introduced: January 21, 2025
Primary sponsor: Sen. Taylor (Select Committee on Capital Financing & Investments)

Purpose

SF 70 modernizes the investment and spending rules for two Wyoming nonpermanent trust funds — the Wyoming Cultural Trust and the Wyoming Wildlife‑Natural Resources Trust — by removing statutory “inviolate” (perpetual corpus) protections, establishing explicit multi‑year spending policies, and allowing the State Treasurer’s Office (STO) to move these funds out of Pool A into longer‑term investment strategies intended to increase long‑term returns.

Key provisions and changes

  • Removes the inviolate/perpetual corpus status for:

    • Wyoming Cultural Trust (fund 605)
    • Wyoming Wildlife‑Natural Resources Trust (fund 529) This change permits annual distributions to be funded from realized yield and unrealized gains/losses (i.e., not strictly limited to investment yield).

  • Establishes formal spending policies based on a five‑year rolling average market value (phased in over five years):

    • Wyoming Cultural Trust: 3.0% spending policy
    • Wildlife‑Natural Resources Trust: 4.0% spending policy Phase‑in schedule for computing the “five‑year average”:
    • FY2026 = 1‑year (FY2025) market value
    • FY2027 = 2‑year average
    • FY2028 = 3‑year average
    • FY2029 = 4‑year average
    • FY2030 onward = full 5‑year average

  • Removes both trusts from Pool A and authorizes STO to invest them using a long‑term investment strategy (including equities where allowed under W.S. 9‑4‑715 and 9‑4‑716), subject to state investment rules and board oversight. This is intended to permit higher expected long‑term returns but with greater potential volatility.

  • Redirects how investment earnings are credited and distributed (earnings credited to the trusts’ corpuses/separate accounts and then made available per the new spending policy language).

  • Conforming and technical statutory amendments and repeals of obsolete provisions. (Several proposed floor amendments to create an “income tax prevention account” were offered but failed in the House.)

Fiscal impact

  • Fiscal Note: overall fiscal impact is indeterminable. Moving funds to longer‑term strategies could increase long‑term returns (and therefore grant/distribution capacity), but could also increase volatility and potential downside; STO reports net change is indeterminable.
  • Estimated FY2026 spending policy amounts (per fiscal note, based on balances as of 6/30/2024):
    • Wyoming Cultural Trust (fund 605): balance ≈ $28,000,000 → 3.0% → estimated $840,000
    • Wildlife‑Natural Resources Trust (fund 529): balance ≈ $200,000,000 → 4.0% → estimated $8,000,000

Who is affected

  • Primary: Wyoming Cultural Trust and Wyoming Wildlife‑Natural Resources Trust (trust boards, grantees who receive grants from the trusts).
  • State Treasurer’s Office: responsible for re‑investment outside Pool A and for accounting/reporting.
  • Indirect: recipients of grants funded by these trusts (cultural, historical, arts, wildlife and natural resource projects) — the new spending policy may change annual grant funding availability and volatility.

Procedural / timeline notes

  • Introduced Jan 21, 2025; passed Senate and House (final House passage 3/4/2025: 58–2–2); Governor signed (SEA No. 84), assigned Chapter No. 149 (March 2025).
  • The five‑year averaging for the spending policy is phased in from FY2026 through FY2030 as described above.
  • The Fiscal Note and statutory language require STO to adopt investment approaches consistent with applicable state investment statutes and board oversight; long‑term outcomes depend on future market performance and STO implementation.

Compiled from official sources — confirm details with the bill’s official record.

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