May 15, 1992
TO: STATE SECURITIES MEMBERS NO. 24-92
UNIT INVESTMENT TRUST MEMBERS NO. 31-92
RE: WYOMING LEGISLATURE ADJOURNS WITHOUT PASSING INVESTMENT
COMPANY FEE LEGISLATION
__________________________________________________________
As you know, several states have adopted fee increases for
the registration of securities as a means of raising additional
revenue to alleviate budget shortfalls. This year, the Secretary
of State in Wyoming supported a bill which would have required
payment of a $100 fee to claim the exemption from registration
for mutual funds and unit trusts.
We are pleased to inform you the fee legislation was not
enacted by the Wyoming Legislature. During the regular session,
both houses failed to consider and/or pass the legislation.
However, a one-week special session was called immediately after
the expiration of the regular session. The legislation passed in
the House and it had gone through a second reading in the Senate
before the special session adjourned.
This is the fourth time the Wyoming Legislature has
considered the issue of regulation and fees of investment
companies. Twice they have considered whether regulation of
investment companies by the Secretary of State is necessary and
have determined that no regulation is needed (1985, 1988); and
four times they have considered whether a fee should be collected
from investment companies and have determined that collection of
a fee is inappropriate (1985, 1988, 1989 and 1992). Given the
persistency of the Secretary of State, it is likely that a
similar measure will be introduced for consideration next year.
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel