HOUSE BILL NO. HB0140. Sponsored by: Representative(s) Northrup, Brown, Harshman and Kinner and Senator(s) Coe A BILL. for

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1 0 STATE OF WYOMING LSO-0 Substitute No. HOUSE BILL NO. HB0 School finance amendments-. Sponsored by: Representative(s) Northrup, Brown, Harshman and Kinner and Senator(s) Coe A BILL for AN ACT relating to school finance; modifying provisions of the state's public school funding system; providing funding for school related accounts, school operations and capital construction by amending provisions regarding state lands mineral royalties, federal mineral royalties, severance taxes, specified reserve accounts and spending policies, the strategic investments and projects account, corporation license taxes, investment earnings and sales and use taxes collected from remote sellers; imposing a limit on funds within the school foundation program account; modifying school board duties; modifying provisions governing average daily membership calculations; revising worker's compensation provisions for special education professionals; providing for Medicaid reimbursements as specified; amending transportation funding provisions; HB0

2 0 STATE OF WYOMING LSO-0 amending school district funding for groundskeepers; repealing assessment funding; requiring a report; requiring the establishment of special education staffing guidelines; providing for additional distributions to school districts; providing for transfers; providing appropriations; requiring the consensus revenue estimating group to meet as specified; requiring rulemaking; providing applicability; and providing for effective dates. Be It Enacted by the Legislature of the State of Wyoming: 0 Section. W.S. --0, --0(b), --0(d)(intro) and by creating a new subsection (k), --(b), (f), (q)(i) and by creating new subsections (t) and (u), --(a), 0(a) by creating a new paragraph (xxxvi), --(a)(i), --0 by creating a new subsection (d), --0., 0(m)(iv)(A), 0(j)(iii), by creating a new paragraph (iv) and (m), --(b) and by creating a new subsection (h), (d)(xvi), --0(d)(intro) and by creating a new subsection (g), --(b)(intro) and by creating a new subsection (p), --(b)(intro) and by creating a new HB0

3 0 STATE OF WYOMING LSO-0 subsection (p) and --(a) by creating new paragraphs (xxxii) and (xxxiii) are amended to read: --0. Strategic investments and projects account created; purposes. (a) The strategic investments and projects account created by 0 Wyoming Session Laws, Chapter, Section, Section 00(e) is continued and codified. Funds within the account shall only be expended by legislative appropriation. The governor may include appropriation requests from funds available within the strategic investments and projects account within his biennial budget requests for one-time expenditures as he deems necessary in accordance with subsection (b) of this section. All funds within the account shall be invested by the state treasurer and all investment earnings from the account shall be credited to the general fund. 0 (b) Funds available for expenditure in the strategic investments and projects account shall be expended in an amount less than or equal to the transfer from the permanent Wyoming mineral trust fund reserve account to the HB0

4 0 STATE OF WYOMING LSO-0 strategic investments and projects account made pursuant to W.S. --(t) and only for school capital construction, including major building and facility repair and replacement as defined in W.S. --(a)(iii) Disposition of state land revenue. 0 (b) Proceeds from the sale of state lands, mineral royalties and any money designated by the Wyoming constitution or Wyoming statutes as collected shall be transmitted to the state treasurer and credited to the proper accounts within the permanent land fund, except as provided by article, section of the Wyoming constitution, thirty-three and one-third percent ( /%) of the mineral royalties received from the lease of any school lands, but not to exceed eight million dollars ($,000,000.00) during any one () year, shall be deposited into the public school capital construction account. To the extent constitutionally permissible and notwithstanding any other provision of law, at the end of every fiscal year, the state treasurer shall transfer to the corpus of each account within the permanent land fund, except the common school account, from the income earned on the corresponding HB0

5 0 STATE OF WYOMING LSO-0 account within the permanent land fund, to the extent available, an amount as provided by this subsection. In determining the amount to be withheld, the state treasurer shall calculate the fiscal year beginning balance and ignore any appropriations made from the account within that fiscal year. For the fiscal year 000, he shall transfer an amount equal to five percent (%) of the inflation rate for the previous twelve () month period as determined by the department of administration and information multiplied by the beginning balance of each permanent land fund account, except the common school account. At the end of each succeeding fiscal year, the state treasurer shall increase the amount to be multiplied by that year's inflation rate by five percent (%) until such time as the multiplier reaches one hundred percent (0%) of the inflation rate, and then multiply that amount by the beginning balance of each permanent land fund account, except the common school account Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments. HB0

6 0 STATE OF WYOMING LSO-0 (d) Any revenue received under subsection (a) of this section in excess of two hundred million dollars ($00,000,000.00) but not to exceed five hundred million dollars ($00,000,000.00) shall be distributed as follows: (k) Any revenue received under subsection (a) of this section in excess of five hundred million dollars ($00,000,000.00) shall be distributed as follows: (i) Two-thirds (/) to the school foundation program account; and (ii) One-third (/) to the budget reserve account. --. Investment earnings spending policy permanent funds. 0 (b) There is created the permanent Wyoming mineral trust fund reserve account. Beginning July, 0 for fiscal year 0 and each fiscal year thereafter, the state treasurer shall transfer unobligated funds from this account to the general fund as necessary to ensure that an HB0

7 0 STATE OF WYOMING LSO-0 amount equal to two and one-half percent (.%) of the previous five () year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year, is available for expenditure annually during each fiscal year. As soon as possible after the end of each of the fiscal years beginning on and after July, 0, and after making any transfers as provided for in paragraph (ii) of this subsection and subsection (u) of this section, revenues in this account in excess of one hundred fifty percent (%) of the spending policy amount in subsection (d) of this section shall be credited to the permanent Wyoming mineral trust fund. In order to ensure funds are available to the general fund under this subsection, the state treasurer shall: 0 (i) Beginning July, 0 and on the first day of the fiscal year or as soon thereafter as reasonably possible, to the extent funds are available, transfer from the permanent Wyoming mineral trust fund reserve account to the general fund any positive amount equal to two and one-half percent (.%) of the previous five () year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year HB0

8 0 STATE OF WYOMING LSO-0 reduced by the most recent estimate of investment income derived from the permanent Wyoming mineral trust fund prepared by the consensus revenue estimating group prior to any transfers under this subsection; and (ii) As soon as practicable after the end of the fiscal year but no later than ninety (0) days after the end of the fiscal year, if a transfer was made to the general fund under paragraph (i) of this subsection for the most recently completed fiscal year, transfer an amount from the general fund to the permanent Wyoming mineral trust fund reserve account so that the net deposits to the general fund under this subsection for any fiscal year do not exceed two and one-half percent (.%) of the previous five () year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year. 0 (f) There is created the common school permanent fund reserve account. Beginning July, 0 for fiscal year 0 and each fiscal year thereafter, the state treasurer shall transfer unobligated funds from this account to the common school account within the permanent land income fund HB0

9 0 STATE OF WYOMING LSO-0 as necessary to ensure that an amount equal to the spending policy amount established in subsection (h) of this section is available for expenditure annually during the fiscal year. As soon as possible after the end of each of the fiscal years beginning on and after July, 0, revenues in this account in excess of one hundred fifty percent (%) three hundred percent (00%) of the spending policy amount shall be credited to the common school account within the permanent land fund. (q) The earnings from the permanent Wyoming mineral trust fund under W.S. --0(u)(iii) during each fiscal year beginning July, 0, which are less than the spending policy established in subsection (d) of this section are appropriated from the general fund subject to subsection (s) of this section and the following: 0 (i) Any earnings in excess of two and one-half percent (.%) of the previous five () year average market value of the trust fund, calculated from the first day of the fiscal year and less than or equal to the spending policy amount specified in subsection (d) of this section shall be credited to the legislative stabilization reserve HB0

10 0 STATE OF WYOMING LSO-0 account created by W.S. -- common school permanent fund reserve account created by subsection (f) of this section and the strategic investments and projects account created by W.S. --0 in equal amounts; and 0 (t) Beginning on July, 0 for fiscal year 0 and for each fiscal year thereafter, to the extent funds are available, the state treasurer shall transfer unobligated funds from the permanent Wyoming mineral trust fund reserve account to the strategic investments and projects account as necessary to ensure amounts are available for expenditure annually during each fiscal year as provided in this subsection. Transfers to the strategic investments and projects account under this subsection shall occur as soon as practicable after the first day of the fiscal year but after transfers under paragraph (b)(i) of this section. The following amounts shall be transferred as provided for each fiscal year to ensure amounts are available for appropriation in the strategic investments and projects account: (i) For fiscal years 0 and 00, an amount equal to fifty-seven hundredths percent (.%) of the HB0

11 0 STATE OF WYOMING LSO-0 previous five () year average market value of the trust fund, calculated from the first day of the fiscal year; (ii) For fiscal year 0, an amount equal to fifty-one hundredths percent (.%) of the previous five () year average market value of the trust fund, calculated from the first day of the fiscal year; (iii) For fiscal year 0 and each fiscal year thereafter, an amount equal to forty-five hundredths percent (.%) of the previous five () year average market value of the trust fund, calculated from the first day of the fiscal year. 0 (u) As soon as practicable after the end of the fiscal year but no later than ninety (0) days after the end of the fiscal year, if a transfer was made to the strategic investments and projects account under subsection (t) of this section for the most recently completed fiscal year, the state treasurer shall transfer an amount from the strategic investments and projects account to the permanent Wyoming mineral trust fund reserve account so that the net deposits to the strategic investments and projects account HB0

12 0 STATE OF WYOMING LSO-0 under subsections (q) and (t) of this section do not exceed the amounts specified in subsection (q) of this section. --. Filing of reports and payment of tax required; amount of tax; exemptions; records. 0 (a) Every corporation organized under the laws of this state and every foreign corporation which obtains the right to transact and carry on business within this state (except banks, insurance companies and savings and loan associations) shall file with the secretary of state on or before the first day of the month of registration of every year a certification, under the penalty of perjury, by its treasurer or other fiscal agent setting forth its capital, property and assets located and employed in the state of Wyoming. The statement shall give the names and addresses of its officers and directors and the address of its principal office. On or before the first day of the month of registration of every year the corporation shall pay to the secretary of state in addition to all other statutory taxes and fees a license tax based upon the sum of its capital, property and assets reported, of fifty dollars ($0.00) or two-tenths of one mill on the dollar ($.000), HB0

13 0 STATE OF WYOMING LSO-0 whichever is greater. Fifty percent (0%) of the revenue collected pursuant to this subsection shall be distributed to the general fund and fifty percent (0%) of the revenue collected pursuant to this subsection shall be distributed to the school foundation program account Duties of boards of trustees. shall: (a) The board of trustees in each school district (xxxvi) Participate in programs of the department of workforce services necessary to receive premium discounts for the state worker's compensation program. --. Definitions. (a) As used in this chapter: 0 (i) "Average daily membership" or "ADM" means the aggregate number of pupils present plus the aggregate number of pupils absent, divided by the actual number of HB0

14 0 STATE OF WYOMING LSO-0 days the school is in session for the year. Pupils who attend at least eighty percent (0%) seventy-five percent (%) of a full time equivalency basis shall be considered full time. For pupils enrolled in school on less than eighty percent (0%) seventy-five percent (%) of a full time equivalency basis, the school district shall calculate the pupil's contribution to the ADM on a prorated basis with the hours or class periods of enrollment being the numerator and the hours or class periods of full time equivalency being the denominator. Pupils who have withdrawn from school or who have been absent for more than ten () consecutive calendar days shall not be counted as members; --0. Foundation program account established; disposition of monies. 0 (d) Any unobligated, unencumbered funds remaining in the school foundation program account in excess of six hundred million dollars ($00,000,000.00) as of June 0 of any fiscal year shall be deposited to the school foundation program reserve account created by W.S HB0

15 0 STATE OF WYOMING LSO School foundation program reserve account; purposes. The school foundation program reserve account created by 0 Wyoming Session Laws, Chapter, Section 00(g) is continued and codified. Funds within the account shall only be expended by legislative appropriation. All funds within the account shall be invested by the state treasurer and all investment earnings from the account shall be credited to the general fund account Determination of amount to be included in foundation program for each district. (m) In determining the amount to be included in the foundation program for each district, the state superintendent shall: 0 (iv) Based upon reports from each district on schools operating within that district for the current school year and on grade configurations contained within each reported school during that school year, compute the average daily membership (ADM) for each reported school and HB0

16 0 STATE OF WYOMING LSO-0 each grade within each reported school in accordance with identified grade configurations subject to the following: (A) If the district's average daily membership (ADM) ADM for the three () immediately preceding school years is greater than the district's ADM from the previous school year, each reported school shall be computed based upon the average of the school's ADM counts completed at the end of the three () immediately preceding school years, or otherwise each reported school within the district shall be computed based on the school's ADM for the previous school year;, whichever is greater; --0. Student transportation; amount within school foundation program formula for transportation maintenance and operations expenditures and school bus purchases; district reporting requirements. 0 (j) Effective for the school year 0-0 and each school year thereafter the amount computed under this section shall be in accordance with the provisions of this subsection. Each district shall receive: HB0

17 0 STATE OF WYOMING LSO-0 (iii) An amount calculated in accordance with subsection (g) of this section for each school bus purchased or initially leased on or after March, 0, if the school district first applied to the department and the department determined the purchase or lease was necessary to alleviate an emergency;. plus (iv) One hundred percent (0%) reimbursement for each school bus that will be partially paid for or rebated under the Diesel Emissions Reduction Act, U.S.C. et seq., or other similar program minus the amount that will be paid for or rebated under the applicable program. 0 (m) No district shall purchase a school bus or enter into a new lease for a school bus on or after March, 0 unless it first applies to the department and the department determines that an emergency exists necessitating the purchase or lease of the bus, except that, beginning July, 0, a district may purchase a bus that will be fully or partially paid for or rebated under the Diesel Emissions Reduction Act, U.S.C. et HB0

18 0 STATE OF WYOMING LSO-0 seq., or other similar program as confirmed by a letter of assurance from the state or federal government. --. Special education; amount within foundation program formula for special education programs and services; district reporting requirements. (b) The amount provided for special education within the education resource block grant model pursuant to W.S. --0(m)(v)(E)(II) shall be equal to one hundred percent (0%) of the amount actually expended by the district during the previous school year for special education programs and services, subject to subsection (h) of this section. 0 (h) A school district shall be reimbursed by the department under subsection (d) of this section only for amounts not paid by the department of health under this subsection. Prior to seeking reimbursement under subsection (d) of this section, school districts shall bill the department of health for costs of approved: HB0

19 0 STATE OF WYOMING LSO-0 (i) School based medical services covered under the school health program under the Wyoming Medical Assistance and Services Act pursuant to W.S. --(a)(xxxii); and (ii) School based Medicaid-eligible services delivered pursuant to an individualized education plan or individualized family service plan under the Wyoming Medical Assistance and Services Act pursuant to W.S. --(a)(xxxiii). --. Extrahazardous industries, employments, occupations; enumeration; definitions; optional coverage. (d) This act applies to governmental entities engaged in an industrial classification listed under subsection (a) of this section and to employees of governmental entities engaged in or employed as the following: 0 (xvi) Public school educational assistants who provide services to special education students; and certified special education teachers and related services providers as defined by C.F.R. 00. and 00. and HB0

20 0 STATE OF WYOMING LSO-0 W.S. --0 and --0 who provide services to eligible students with behavioral, emotional, cognitive, learning, physical or health disabilities that require educational services to be provided outside of the regular classroom because the use of supplementary aids and services cannot be achieved satisfactorily in the regular classroom; --0. Severance tax distributions; distribution account created; formula. 0 (d) Except as provided in subsection (g) of this section, after making distributions pursuant to subsections (b), (c) and (f) of this section, distributions under subsection (e) of this section shall be made from the severance tax distribution account. The amount of distributions under subsection (e) of this section shall not exceed one hundred fifty-five million dollars ($,000,000.00) in any fiscal year. To the extent that distributions under subsection (e) of this section would exceed that amount in any fiscal year, the excess shall be credited: 0 HB0

21 0 STATE OF WYOMING LSO-0 (g) For fiscal year 0 and each fiscal year thereafter, when distributions under paragraph (d)(ii) of this section equal one hundred thirty-seven million dollars ($,000,000.00) additional funds that would otherwise be distributed under paragraphs (d)(i) and (ii) of this section shall be credited to the school foundation program reserve account until credits to the school foundation program reserve account for the fiscal year reach forty-five million dollars ($,000,000.00). If there are undistributed funds in the severance tax distribution account and the conditions of this subsection have been met, the excess shall be credited as follows: (i) One-third (/) to the general fund; and (ii) Two-thirds (/) to the budget reserve account. --. Distribution. 0 (b) Revenues earned under W.S. -- during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Except as otherwise HB0

22 0 STATE OF WYOMING LSO-0 provided in subsection (p) of this section, for all revenue collected by the department under W.S. -- the department shall: (p) Sixty-nine percent (%) of the revenue collected pursuant to W.S. -- from remote sellers as provided for under W.S. --0 shall be credited to the school foundation program account. The remaining thirty-one percent (%) shall be distributed as is otherwise provided for by law. --. Distribution. (b) Revenues earned under this article during each fiscal year shall be recognized as revenue during that fiscal year for accounting purposes. Except as otherwise 0 provided in subsection (p) of this section, revenue collected by the department from the taxes imposed by this article shall be transferred to the state treasurer who shall, as specified by the department: (p) Sixty-nine percent (%) of the revenue collected pursuant to W.S. -- from remote sellers as provided HB0

23 0 STATE OF WYOMING LSO-0 for under W.S. --0 shall be credited to the school foundation program account. The remaining thirty-one percent (%) shall be distributed as is otherwise provided for by law. --. Authorized services and supplies. (a) Services and supplies authorized for medical assistance under this chapter include: (xxxii) School based medical services; (xxxiii) School based Medicaid-eligible services delivered pursuant to an individualized education plan or individualized family service plan. Allowable services include services provided by a school psychologist when practicing in a school based setting. 0 Section. 0 Wyoming Session Laws, Chapter, ATTACHMENT "A" (b)(xxxiii) is amended to read: ATTACHMENT "A" HB0

24 0 STATE OF WYOMING LSO-0 ATTACHMENT "A" CONTAINS AN ENUMERATION OF EDUCATION RESOURCE BLOCK GRANT MODEL COMPONENTS SUMMARIZING AND EXECUTING RECOMMENDATIONS CONTAINED IN THE 0 COST OF EDUCATION STUDY AS FOLLOWS: (b) Notwithstanding components specified in the 0 cost of education study accepted by the legislature, the Wyoming education resource block grant model components and the resourcing for those components, as enacted by the legislature, shall be as follows: 0 (xxxiii) Maintenance and operations: Based on ADM, gross square footage, number of buildings and classrooms, and age of buildings and site acreage for custodians, and maintenance workers, and groundskeepers, computed in accordance with the 0 cost of education study. Any HB0

25 0 STATE OF WYOMING LSO-0 0 building without allowable gross square footage for purposes of major maintenance computations under W.S. -- shall use the actual educational gross square footage as approved by the school facilities commission. Groundskeeper FTE computations for elementary, middle and high schools shall be computed in accordance with the 0 cost of education study, subject to the following. The site acreage shall be based upon the lesser of the actual site acreage on which the facility is situated as defined by department rule and regulation, or the school facility guidelines and site acreages established by the HB0

26 0 STATE OF WYOMING LSO-0 0 school facilities commission under W.S. --. Elementary, middle and high school acreages acquired on or prior to July,, and acreages acquired after July, through an exchange with another governmental entity if the acreages involved in the exchange were originally acquired by the district and the governmental entity on or prior to July,, shall not be subject to groundskeeper FTE computation limitations, except as follows. Groundskeeper FTE computations for district level sites shall be equal to % of the groundskeeper FTEs for elementary, middle and high schools. HB0

27 0 STATE OF WYOMING LSO-0 Section. 0 Wyoming Session Laws, Chapter, ATTACHMENT "A" (b)(xxviii), as amended by 0 Wyoming Session Laws, Chapter 0, ATTACHMENT "A" (b)(xxviii), is repealed. Section. The department of education and department of health shall promulgate rules by July, 0 to comply with amendments to W.S. -- and -- in section of this act. Section. There is appropriated five million dollars ($,000,000.00) from the school foundation account and five million dollars ($,000,000.00) in federal funds to the department of health for the period beginning July, 0 and ending June 0, 00 to be expended only for the purpose of benefits described in W.S. --(a)(xxxii) and (xxxiii). These appropriations shall be accounted for in a separate budget unit. Any unexpended, unencumbered 0 amounts appropriated under this section shall revert as provided by law on June 0, 00. Section. HB0

28 0 STATE OF WYOMING LSO-0 (a) The department of education shall determine, for school years 0-0 and 0-00, the reduction caused by amendments to W.S. --0(m)(iv)(A) and 0 Wyoming Session Laws, Chapter, ATTACHMENT "A" (b)(xxxiii) contained in this act to each school district's foundation program amount calculated pursuant to W.S. --0(p). (b) The department of education shall increase a school district's total foundation program amount calculated under W.S. --0 for the 0-0 school year by an amount equal to two-thirds (/) of the reduction calculated for that school district under subsection (a) of this section for that school year. 0 (c) The department of education shall increase a school district's total foundation program amount calculated under W.S. --0 for the 0-00 school year by an amount equal to one-third (/) of the reduction calculated for that school district under subsection (a) of this section for that school year. Section. HB0

29 0 STATE OF WYOMING LSO-0 (a) The department of education shall review state statutes relating to special education and school district transportation and its rules relating to special education and transportation for any possible fiscal efficiencies. By June, 0, the department of education shall report to the joint education interim committee on its review and shall include suggested changes to statute or rule and any rulemaking conducted as a result of its review. The department shall use the applicable recommendations of the legislature's 0 recalibration consultant to guide its review. (b) On or before January, 0, the state superintendent of public instruction shall establish statewide guidelines for adequate special education staffing levels as required by W.S. --0(a)(xxiii). Section. 0 (a) The state auditor shall transfer one hundred fifty million five hundred twenty-four thousand five hundred eighty-five dollars ($,,.00) from the school foundation program reserve account created by W.S. HB0

30 0 STATE OF WYOMING LSO to the common school permanent fund reserve account created by W.S. --(f). This transfer shall be reduced on a dollar for dollar basis to the extent a like transfer is made in any other law enacted through the 0 budget session. (b) The state auditor shall transfer forty million eight hundred thirty-three thousand seventy four dollars ($0,,0.00) from the general fund to the school capital construction account. This transfer shall be reduced on a dollar for dollar basis to the extent a like transfer is made in any other law enacted through the 0 budget session. Section. The consensus revenue estimating group shall meet prior to July, 0 to estimate investment income derived from the permanent Wyoming mineral trust fund, in accordance with W.S. --, as amended by this act. 0 Section. To the extent this act conflicts with any other law enacted through the 0 budget session of the 0 HB0

31 0 STATE OF WYOMING LSO-0 Wyoming legislature this act shall be given precedence and shall prevail over a conflicting provision. Section. (a) Except as provided in subsection (b) of this section, this act is effective July, 0. (b) Sections and through of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article, Section of the Wyoming Constitution. (END) HB0