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Committee approves bill letting local governments invest in equities under SLIB rules, adds risk disclosures
Summary
Senate File 145 would authorize cities, towns and counties to invest in equities under State Loan and Investment Board (SLIB) policy, with proposed amendments clarifying SLIB authority and putting risk responsibility on participating political subdivisions. The committee passed the bill 4-1.
Senator Nethercott presented Senate File 145 to the Senate Corporations, Elections & Political Subdivisions Committee, proposing to authorize local governments to invest in equities similar to the state by following investment policy statements adopted by the State Loan and Investment Board (SLIB). The bill passed the committee by roll call, 4 ayes and 1 no.
The bill would allow political subdivisions to invest in equities subject to SLIB‑adopted investment policy statements and to create local investment advisory boards. The sponsor said the change responds to local governments that find existing pooled options (WIOSTAR/WildStar accounts) inadequate and want more autonomy to manage investment earnings.
Betsy Anderson, deputy chief of staff and general counsel for Governor Gordon, said the governor supports local governments investing in equities but asked for clarifying amendments. She proposed (1) language clarifying SLIB’s authority to adopt policies specific to political subdivisions, (2) removal of the Investment Funds Committee from the statute, and (3) a statutory statement making clear the state does not assume liability for local losses. Senator Nethercott and SLIB representatives agreed to conforming language and to let LSO place it in the bill.
Treasurer’s Office witnesses said the office already manages multiple pooled accounts (WildStar 1–3) and that WildStar 3 (the equity option) has not yet been implemented; SLIB and its consultants (the treasurer’s investment consultant) would set parameters and help manage risks. Patrick Fleming, chief investment officer for the treasurer’s office, told the committee the equity option would follow established IPS (investment policy statement) processes already used for fixed income pools.
Local officials and associations testified in favor. Robert Short, vice president of the Wyoming County Commissioners Association, said counties need additional tools to stabilize revenues as local revenue sources change. Ashley Harpreet of the Wyoming Association of Municipalities and Patrick Collins, mayor of Cheyenne, said local governments have used professional managers and investment committees and want an authorized, SLIB‑governed pathway to equity investments to meet future obligations, such as landfill closure costs.
Amendments accepted in committee removed the Investment Funds Committee reference, added SLIB authority conforming language, and added statutory language (to be drafted by LSO) that participants acknowledge the risks of equity investment and that any losses are assumed by the participating political subdivision. The committee adopted the amendments and passed the bill on a 4–1 vote (Senator Bonner, Senator Dockstader, Senator Landon and Chairman Case aye; Senator Steinmetz no).
The bill now advances with committee amendments; SLIB and LSO were asked to work on conforming statutory language and placement of the risk‑acknowledgment and liability language.
