§ 9-4-601 — Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments

Wyoming § 9-4-601

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 4: PUBLIC FUNDS
• Art. 6: GOVERNMENT ROYALTY REVENUE

Text

(a) All monies received by the state of Wyoming from the
secretary of the treasury of the United States under the
provisions of the act of congress of February 25, 1920 (41 Stat.
437, 450; 30 U.S.C. §§ 181, 191), as amended, or from lessees or
authorized mine operators and all monies received by the state
from its sale of production from federal mineral leases subject
to the act of congress of February 25, 1920 (41 Stat. 437, 450;
30 U.S.C. §§ 181, 191) as amended, except as provided by
subsection (b) of this section, shall be deposited into an
account and the first two hundred million dollars
($200,000,000.00) of revenues received in any fiscal year shall
be distributed by the state treasurer as provided in this
subsection. One percent (1%) of these revenues shall be credited
to the general fund as an administrative fee, and the remainder
shall be distributed as follows:
(i) Two and one-quarter percent (2 1/4%) to the
highway fund to be expended by the transportation commission for
permanent construction or maintenance work in the counties to
which the royalties are attributable with priority given to
roads and highways impacted by mineral development;
(ii) Forty-seven and one-half percent (47.5%) to the
public school foundation program account subject to allocations
under W.S. 9-4-605;
(iii) Except as provided by W.S. 9-4-605(a), and as
otherwise provided in this paragraph, twenty-six and one-quarter
percent (26 1/4%) to the highway fund subject to allocations
under W.S. 9-4-607. For fiscal years 2023 and 2024 funds under
this paragraph shall be distributed to the general fund until
such time as the distributions under this paragraph for both
fiscal years 2023 and 2024 cumulatively equal the amount of
funds received by the state of Wyoming and allocated to the
department of transportation from the American Rescue Plan Act
of 2021, P.L. 117-2, Section 602 for the provision of government
services under Section 602(c)(1)(C). Upon reaching the total
allocation from the American Rescue Plan Act of 2021, P.L. 117-
2, under Section 602(c)(1)(C) and after the conditions of this
paragraph have been met, the excess shall be credited to the
highway fund;
(iv) Six and three-quarters percent (6 3/4%) to a
separate account for the University of Wyoming. This revenue may
be used only for the actual and necessary expenses of
constructing, equipping and furnishing new buildings, the
repairing of existing buildings, the purchasing of improved or
unimproved real estate, the payment of principal and interest on
securities issued to finance projects authorized by the
legislature or for the payment of principal and interest on
securities issued to refund the securities. Payments from this
revenue shall be made by the state treasurer only for
expenditures approved by the trustees of the university,
provided that expenditures for capital construction projects
shall only be for projects authorized by the legislature. The
trustees of the university are authorized to approve
expenditures from this revenue for the payment of principal and
interest on any outstanding securities issued pursuant to this
paragraph in accordance with the terms of the securities. The
trustees of the university shall include within the university's
biennial budget request submitted under W.S. 9-2-1013 a report
on all expenditures under this paragraph in each of the
immediately preceding two (2) fiscal years;
(v) Nine and three-eighths percent (9.375%) to
incorporated cities and towns to be used for planning,
construction or maintenance of public facilities or providing
public services. Any city or town may expend these revenues or
pledge future revenues for payment of revenue bonds issued to
provide public facilities. However no city or town shall pledge
future revenues to the federal government under 43 U.S.C. § 1747
unless the city or town obtains a written determination from the
governor, which he may make in connection with his consultation
with the secretary of the interior under 43 U.S.C. § 1747 or
otherwise, that the pledge will not affect the distribution of
mineral royalties provided in this section. The distribution
provided under this paragraph to any city or town shall be
reduced by an amount equal to the amount of federal mineral
royalties withheld from the state by the federal government to
repay any loan to the city or town under 43 U.S.C. § 1747.
Pledges of this income for revenue bonds shall not exceed ten
(10) years. Each city and town shall receive:
(A) Twelve thousand dollars ($12,000.00) if the
population is three hundred twenty-five (325) persons or less,
or fifteen thousand dollars ($15,000.00) if the population is
more than three hundred twenty-five (325) persons; plus
(B) An amount computed by the state treasurer as
follows: after deducting the distribution provided by
subparagraph (A) of this paragraph, the remainder shall be
allocated for distribution to cities and towns within each
county in an amount proportionate to the percentage obtained by
dividing the average daily membership, as defined in W.S.
21-13-101, of all school districts within each county by the
total average daily membership of all school districts in the
state. The distribution to each city and town will then be made
in the proportion that the population of the city or town bears
to the total population of all cities and towns in the county.
(vi) Three and seventy-five hundredths percent
(3.75%) to the capital construction account to be expended as
provided by W.S. 9-4-604(k)(i) or to fund bonds the proceeds of
which will be used under W.S. 9-4-604(g) and one and twenty-five
hundredths percent (1.25%) to the highway fund, except for
fiscal years 2017 and 2018 funds directed to the highway fund
under this paragraph shall be distributed to the general fund;
(vii) Repealed by Laws 2023, ch. 175, § 3.
(viii) Repealed by Laws 1988, ch. 82, § 2.
(ix) Two and twenty-five one-hundredths percent
(2.25%), to the highway fund, except for fiscal years 2017 and
2018 funds under this paragraph shall be distributed to the
general fund;
(A) Repealed by Laws 1995, ch. 137, § 1.
(B) Repealed by Laws 1995, ch. 137, § 1.
(C) Repealed by Laws 1995, ch. 137, § 1.
(x) Five--eighths percent (.625%) to the highway
fund, except for fiscal years 2017 and 2018 funds under this
paragraph shall be distributed to the general fund;
(A) Repealed by Laws 1995, ch. 137, § 1.
(B) Repealed by Laws 1995, ch. 137, § 1.
(xi) Repealed by Laws 2017, ch. 205, § 2; ch. 206, §
2.
(xii) If insufficient funds are available under W.S.
39-14-801(j) to fully satisfy any delinquent payment owed by a
city or county under W.S. 15-5-203(h), the state treasurer shall
withhold from any payment due to a city or county under this
subsection an amount as necessary to satisfy any delinquent
payment owed by a city or county under W.S. 15-5-203(h). The
withheld amount shall be deposited to the legislative
stabilization reserve account and credited against the
delinquent entity's unpaid loan amount.
(b) The state treasurer shall ascertain and withhold all
bonus payments received from the federal government attributable
to coal, oil shale or geothermal leases of federal land within
Wyoming and shall distribute it as follows:
(i) Fifty percent (50%), the first seven million five
hundred thousand dollars ($7,500,000.00) of which shall be
distributed as follows, and any amount in excess of seven
million five hundred thousand dollars ($7,500,000.00) per year
shall be deposited into the public school foundation program
account:
(A) Three-fourths (3/4) shall be credited to the
capital construction account for the purposes specified in W.S.
9-4-604(k)(i) or to fund bonds the proceeds of which will be
used under W.S. 9-4-604(g);
(B) One-fourth (1/4) to the highway fund.
(ii) Repealed By Laws 2001, Ch. 209, § 3.
(iii) Repealed By Laws 1998, ch. 5, § 4.
(iv) And:
(A) Ten percent (10%) but not to exceed one
million six hundred thousand dollars ($1,600,000.00) per year,
to a separate account which may be expended by the community
college commission in accordance with and in addition to
appropriations available under W.S. 21-18-205(c). Any amount in
excess of one million six hundred thousand dollars
($1,600,000.00) together with any unexpended revenues within the
account at the end of any biennial budget period shall be
credited to the public school foundation program account;
(B) Forty percent (40%) to be deposited to the
public school foundation program account.
(v) Repealed By Laws 2010, Ch. 69, § 204.
(c) Repealed by Laws 2000, Ch. 97, § 4.
(d) Except as provided in subsections (k), (m), (n) and
(o) of this section, any revenue received under subsection (a)
of this section in excess of two hundred million dollars
($200,000,000.00) shall be distributed as follows:
Note: Effective 7/1/2026 this subsection will read as:
(d) Except as provided in subsection (o) of this section,
any revenue received under subsection (a) of this section in
excess of two hundred million dollars ($200,000,000.00) shall be
distributed as follows:
(i) Repealed by Laws 2000, Ch. 97, § 4.
(ii) Repealed by Laws 2000, Ch. 97, § 4.
(iii) Subject to paragraphs (v), (vi) and (viii) of
this subsection, one-third (1/3) to the public school foundation
program account;
(iv) Subject to paragraphs (vii) and (ix) of this
subsection, two-thirds (2/3) to the budget reserve account;
Note: Effective 7/1/2026 this paragraph will read as:
(iv) Subject to paragraphs (vii) and (ix) of this
subsection, two-thirds (2/3) to the general fund;
(v) From the amounts which would otherwise be
distributed to the public school foundation program account
under paragraph (iii) of this subsection, amounts shall be
deposited to the excellence in higher education endowment fund
and the Hathaway student scholarship endowment fund created by
W.S. 9-4-204(u)(vi) and (vii) in accordance with and subject to
the requirements of this paragraph. The amounts specified in
this paragraph shall be reduced as the state treasurer
determines necessary to ensure that as of July 1 of each fiscal
year, there is an unobligated, unencumbered balance of one
hundred million dollars ($100,000,000.00) within the public
school foundation program account. Distributions under this
paragraph shall be as follows:
(A) Seventy-nine percent (79%) to the Hathaway
student scholarship endowment fund, until that account balance
equals four hundred million dollars ($400,000,000.00);
(B) Twenty-one percent (21%) to the excellence
in higher education endowment fund until distributions to that
fund under this subparagraph equal one hundred five million
dollars ($105,000,000.00);
(C) After the amounts specified in subparagraphs
(A) and (B) of this paragraph are deposited to the appropriate
fund, remaining funds shall be deposited pursuant to paragraph
(vi) of this subsection and then to the public school foundation
program account as provided in paragraph (iii) of this
subsection.
(vi) From the amounts which would otherwise be
distributed to the public school foundation program account
under paragraph (iii) of this subsection and paragraphs (k)(i),
(m)(i), (n)(i) and (o)(i) of this section, there is annually
appropriated to the common school permanent fund reserve account
the amount determined under W.S. 9-4-719(g). The appropriation
shall be credited to the account as provided in W.S. 9-4-719(g);
(vii) From the amounts that would otherwise be
distributed to the budget reserve account under paragraph (iv)
of this subsection and paragraphs (k)(ii), (m)(ii), (n)(ii) and
(o)(ii) of this section, amounts necessary to make the required
revenue bond payments as provided by W.S. 9-4-1003(d), but in no
event more than eighteen million dollars ($18,000,000.00)
annually;
Note: Effective 7/1/2026 this paragraph will read as:
(vii) From the amounts that would otherwise be
distributed to the general fund under paragraph (iv) of this
subsection amounts necessary to make the required revenue bond
payments as provided by W.S. 9-4-1003(d), but in no event more
than eighteen million dollars ($18,000,000.00) annually;
(viii) Repealed by Laws 2017, ch. 205, § 2; ch. 206,
§ 2.
(ix) For the period beginning July 1, 2019 and ending
June 30, 2049, from the amounts that would otherwise be
distributed to the budget reserve account under paragraph (iv)
of this subsection, the first eight million dollars
($8,000,000.00) shall be distributed to a separate account for
the University of Wyoming. These funds are continuously
appropriated to the university upon deposit to the account. The
University of Wyoming shall reduce its standard budget request
for the 2021-2022 biennium by an amount equal to the maximum
amount of funds authorized to be deposited under this paragraph.
The University of Wyoming shall acknowledge this reduction of
its 2021-2022 budget request pursuant to this paragraph in each
standard budget request submitted to the governor's office
through June 30, 2048.
Note: Effective 7/1/2026 this paragraph will read as:
(ix) For the period beginning July 1, 2019 and ending
June 30, 2049, from the amounts that would otherwise be
distributed to the general fund under paragraph (iv) of this
subsection, the first eight million dollars ($8,000,000.00)
shall be distributed to a separate account for the University of
Wyoming. These funds are continuously appropriated to the
university upon deposit to the account. The University of
Wyoming shall reduce its standard budget request for the 2021-
2022 biennium by an amount equal to the maximum amount of funds
authorized to be deposited under this paragraph. The University
of Wyoming shall acknowledge this reduction of its 2021-2022
budget request pursuant to this paragraph in each standard
budget request submitted to the governor's office through June
30, 2048.
(e) Repealed By Laws 1998, ch. 5, § 4.
(f) Repealed by Laws 2000, Ch. 97, § 4.
(g) The state, should federal law not proscribe such
action, is authorized and empowered to receive its gross
percentage share of federal mineral royalties from the
production of oil and gas which is due under the provisions of
the act of congress of February 25, 1920 (41 Stat. 437, 450; 30
U.S.C. §§ 181, 191) as amended, in the form of the actual
production from federal mineral leases covered under that act of
congress. If directed by the governor, the production shall be
taken by the state in lieu of royalty receipts. The production
shall be taken in the same percentage of volume as the gross
percentage of royalty proceeds allowed by the act of congress.
Any sale or disposal of the production shall be administered by
the director of the office of state lands and investments or his
designee. The director, subject to criteria established by the
governor, shall sell or dispose of any production taken by the
state from federal mineral leases. Prior to receipt of any
royalties, the director shall promulgate necessary rules and
regulations to carry out this subsection.
(h) Repealed by Laws 2002, Ch. 45, § 2, Ch. 62, § 2.
(j) The state, should federal law not proscribe such
action, is authorized and empowered to receive its gross
percentage share of federal mineral royalties from the
production of solid minerals which is due under the provisions
of the act of congress of February 25, 1920 (41 Stat. 437, 450;
30 U.S.C. §§ 181, 191) as amended, in the form of a direct cash
payment to the state from the lessee or authorized mine
operator. If directed by the governor, such payment shall be
taken by the state in lieu of royalty payments from the federal
government. Prior to exercising this option, the director of the
office of state lands and investments shall promulgate necessary
rules and regulations to implement this program which shall
include defining the appropriate reporting requirements to
ensure proper payment. To the extent possible, the rules and
regulations shall rely on current reporting programs and avoid
duplicative or additional administrative requirements. The state
shall exercise such option for a minimum period of one (1) year
and with no less than ninety (90) days notice to the lessee or
authorized mine operator.
(k) For the period beginning March 15, 2018 for fiscal
years 2018, 2019 and 2020, any revenue received under subsection
(a) of this section in excess of five hundred million dollars
($500,000,000.00) shall be distributed as follows:
(i) For fiscal years 2018 and 2019, two-thirds (2/3)
and for fiscal year 2020 one-half (1/2) to the public school
foundation program account; and
(ii) For fiscal years 2018 and 2019, one-third (1/3)
and for fiscal year 2020 one-half (1/2) to the budget reserve
account.
Note: this subsection is repealed by Laws 2025, ch. 63, § 2.
effective 7/1/2026.
(m) For fiscal year 2021, any revenue received under
subsection (a) of this section in excess of four hundred eighty-
five million five hundred thousand dollars ($485,500,000.00) and
for fiscal year 2022, any revenue received under subsection (a)
of this section in excess of five hundred million eight hundred
thousand dollars ($500,800,000.00) shall be distributed as
follows:
(i) One-half (1/2) to the public school foundation
program account; and
(ii) One-half (1/2) to the budget reserve account.
Note: this subsection is repealed by Laws 2025, ch. 63, § 2.
effective 7/1/2026.
(n) For fiscal year 2023, any revenue received under
subsection (a) of this section in excess of four hundred fifty-
nine million dollars ($459,000,000.00) and for fiscal year 2024,
any revenue received under subsection (a) of this section in
excess of four hundred twenty-nine million two hundred thousand
dollars ($429,200,000.00) shall be distributed as follows:
(i) Forty percent (40%) to the public school
foundation program account; and
(ii) Sixty percent (60%) to the budget reserve
account.
Note: this subsection is repealed by Laws 2025, ch. 63, § 2.
effective 7/1/2026.
(o) For fiscal year 2025, any revenue received under
subsection (a) of this section in excess of five hundred forty-
nine million four hundred thousand dollars ($549,400,000.00) and
for fiscal year 2026, any revenue received under subsection (a)
of this section in excess of five hundred thirty million two
hundred thousand dollars ($530,200,000.00) shall be distributed
as follows:
(i) Forty percent (40%) to the public school
foundation program account; and
(ii) Sixty percent (60%) to the budget reserve
account.