Local governments-investments in equities.
SF0145 authorizes certain Wyoming local governments and public entities to invest public funds in equities, including corporate stocks. The bill amends the state’s public-funds investment statute to add a new investment category for the state treasurer, treasurers of political subdivisions, municipalities, special districts, and certain county boards and commissions. It requires those local investments to follow investment policy statements adopted by the State Loan and Investment Board and to comply with comparable requirements and conditions already used for other public-fund investments.
The bill also places guardrails around the new authority. A political subdivision must create an investment advisory board to provide advice and expertise, and the local government itself assumes all risk associated with equity investing. The bill expressly states that these new local-government equity investments are not subject to certain existing statutory restrictions and cannot begin until the State Loan and Investment Board adopts the required policy statements. The state treasurer’s existing authority to invest state funds in equities is preserved and not changed.
In terms of legal impact, SF0145 expands the investment options available to local public entities under W.S. 9-4-831 by adding equities as an authorized asset class. It also directs the State Loan and Investment Board to develop policy statements governing these investments, which will shape how local governments may participate and what safeguards must be in place before investing. The act takes effect immediately upon enactment, but the new equity-investment authority in Section 1 becomes effective July 1, 2025.
The bill appears to have been generally well received, as reflected by strong passage in both chambers and favorable committee recommendations. The Senate Corporations Committee recommended amend and do pass on a 4-1 vote, the Senate passed the bill 27-3, the House Appropriations Committee recommended amend and do pass unanimously, and the House passed it 54-6 before concurrence passed 27-2. That voting pattern suggests broad support, though not unanimous.
The main point of contention is the policy risk of allowing public entities to invest taxpayer funds in equities, which can be volatile and may expose local governments to losses. Supporters likely viewed the measure as giving local governments more flexibility and potentially higher returns, while opponents appear to have been concerned about financial risk, oversight, and whether local entities have sufficient expertise to manage stock-market investments responsibly. The bill’s requirement for advisory boards and state-issued policy statements appears designed to address those concerns.
SF0145 amends Wyoming’s public-funds investment law, W.S. 9-4-831, to authorize specified local governments and public entities to invest in equities, including corporate stocks, subject to state-adopted policy statements and local advisory-board requirements. It creates a new statutory framework for local-government equity investing, preserves the state treasurer’s separate authority to invest state funds in equities, and delays implementation until the State Loan and Investment Board adopts applicable policies; Section 1 becomes effective July 1, 2025.
The overall sentiment around the bill appears favorable. It advanced with strong committee support and passed both chambers by comfortable margins, including unanimous support in the House Appropriations Committee and broad floor approval. The votes indicate bipartisan acceptance, though the presence of a small number of dissenting votes shows some continuing concern about the prudence of expanding public investment authority into equities.
The central contention is whether local governments should be allowed to place public funds into the stock market. Critics are likely concerned about volatility, potential losses, and the adequacy of local investment expertise, especially because the bill shifts all investment risk to the governmental entity. Supporters likely argue that the measure modernizes investment authority, gives local governments more flexibility, and may improve returns, while the advisory-board and state-policy requirements provide needed oversight.