Lawmakers press Wyoming Business Council over oversight of federal venture-capital funds

A legislative working group on Tuesday reviewed a draft bill that would subject federal venture-capital funds administered by the Wyoming Business Council to legislative review and, for any general-fund administrative expenses, appropriation.

The draft, 27 LSO 0045, would require the council to submit specified federal funds received under the State Small Business Credit Initiative (an ARPA-funded program) to legislative review instead of relying solely on existing executive B11 budget changes, and it would require separate reporting of expenditures and investment performance.

Don Richards, Legislative Service Office administrator for the budget and fiscal division, summarized the draft and its purpose: the bill "requires legislative review and appropriation of federal funds" used for venture capital and would impose reporting and budget limitations. He described the measure as wording that limits the governor’s ability to alter those specific federal funds during the interim and requires the council to identify related funds and investments in its annual report.

Wyoming Business Council CEO Josh Durell defended the council’s current approach and emphasized why the council treats the federal venture capital money as investments rather than appropriations. "We have invested $19.9 million," he told the committee, saying that sum has been placed in 11 Wyoming companies and that the council expects to receive about $50 million in total as three tranches arrive from the federal program. He described the Council’s role as a market catalyst: small equity positions that attract other capital, not to operate as a typical venture-capital firm seeking maximum returns.

Durell outlined the council’s investment process: the council hires an investment manager with venture experience, an investments committee from the council’s board reviews deals, and the council follows U.S. Treasury guidelines tied to the State Small Business Credit Initiative. He said the program’s investments have helped attract roughly $184 million in additional capital to those Wyoming companies.

Several committee members urged caution about inserting the legislature directly into the operational cadence of these investments. "While I am happy to report, I'm happy to bounce ideas off of, it feels like gumming up the system," Durell said, defending the need to act "at the speed of business" when rounds open and close.

Lawmakers asked for more transparency and documentation the council can provide—lists of companies, investment sizes and the investment manager’s background—so the committee can weigh oversight against the need to avoid delaying deals. Representative Sherwood and others also sought clarity on whether administrative dollars for the program are general fund, mineral revenue, or other sources; the council said administrative costs come from the federal program’s allowable administration set-aside and that the council can provide salary and budget details on request.

The committee deferred further action; staff and council representatives said they would provide additional documentation and that the working group will continue to refine the bill language to balance legislative oversight with the council’s ability to operate quickly.

The hearing closed without a committee vote; the committee plans further questions for the working group and the Business Council at follow-up meetings.