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SB 171

Transfer a portion of ending fund balance into the coal trust fund

2025 Regular Session Introduced by Dave Fern

Transfers a portion of the year's ending fund balance to the Coal Trust Fund to grow its principal for coal-related programs, reducing near-term General Fund flexibility.

(H) Died in Standing Committee
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Bill Summary · SB 171

Summary — SB 171: “Transfer a portion of ending fund balance into the coal trust fund”

Note: The only explicit, consistent metadata provided for this SB 171 are the title, subject, introduction date, and final status. No full bill text or dollar/percentage amounts were attached; many of the supplied documents appear to be unrelated bills labeled “SB 171” from other jurisdictions. This summary therefore describes the bill’s stated purpose, typical provisions such a title implies, likely impacts, and its procedural status based on the available information.

Purpose and intent

  • The bill’s stated purpose is to transfer a portion of a state governmental “ending fund balance” (i.e., unspent general fund or other specified fund balance at fiscal year-end) into the state’s Coal Trust Fund.
  • The likely intent is to increase permanent/long‑term investment principal dedicated to coal-related trust purposes (for example: post-mining reclamation, community transition funds, legacy liability coverage, or distributions for coal‑affected counties/communities).

Key provisions (inferred / typical)

  • Directs the state treasurer or controller to transfer a specified portion (percentage or fixed dollar amount) of the fiscal year ending balance from a named fund (commonly the General Fund or another specified fund) to the Coal Trust Fund.
  • Establishes timing and conditions for the transfer (e.g., after close of fiscal year, subject to certification of revenues/obligations).
  • May include caps or exclusions (e.g., minimum reserve levels to maintain a statutory Rainy Day Fund).
  • Could amend the Coal Trust Fund statute to accept the deposit and define use of added principal (e.g., allow distributions for community assistance, remediation, or to be held as permanent endowment).
  • May require legislative certification or limit transfers in years with budget shortfalls.

Who would be affected

  • State financial officers: treasurer, controller/finance director, and budget office — responsible for carrying out transfers and reporting.
  • Legislature — affects future budgeting options and possibly statutory fund-balance policy.
  • Coal trust beneficiaries: coal-impacted counties, reclamation programs, or other designated recipients depending on trust rules.
  • General Fund budget flexibility — less available one-time balance in the short term if transfers occur.
  • Credit-rating agencies and bondholders, potentially, if reserve policy changes materially.

Fiscal and legal implications (likely)

  • Short-term: reduces available ending fund balance for budget uses, contingencies, or one-time spending.
  • Long-term: increases trust principal, potentially producing larger future earnings/distributions for coal-related purposes.
  • Net fiscal effect depends on transfer size, trust payout policy, and whether transferred sums would otherwise have been appropriated or left in reserves.
  • May trigger statutory or constitutional constraints on use or transfer of certain fund balances (legal review often required).

Procedural status & timeline

  • Introduced: January 23, 2025.
  • Status: (H) Died in Standing Committee — the bill did not advance out of the House committee where it was considered during the 2025 session.
  • Next steps: To revive the policy, sponsors would need to reintroduce the measure in a future session or pursue inclusion of the transfer language in a budget bill or another vehicle.

Notes, uncertainties & recommendations

  • No bill text or fiscal detail (percentages/dollar amounts) was provided, so the summary is based on the title and standard legislative practice for fund transfers.
  • Because transferring reserves can have significant short‑ and long‑term effects, look for: (1) the exact source fund, (2) the transfer formula or amount, (3) exclusions (minimum reserve requirements), (4) trust distribution rules, and (5) accompanying fiscal notes estimating near‑term and ongoing impacts.
  • If you need a more precise analysis, provide the full bill text or the specific statutory sections the bill would amend.

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

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