HB0301 - State investments-economic development.
2001 |
State of Wyoming |
01LSO-0527.E1 ENGROSSED |
HOUSE BILL NO. HB0301
State investments-economic development.
Sponsored by: Representative(s) Simpson, Baker, Hageman
and Lockhart and Senator(s) Meier
A BILL
for
1 AN ACT relating to
investment of state funds; increasing
2
the amount and duration of time for the state treasurer to
3
invest in small business loans under this section; allowing
4
the state treasurer to purchase bonds for industrial
5
development projects; modifying the conditions for the
6
state treasurer to invest in industrial development bonds;
7
amending the purpose for which such bonds may be utilized;
8
and providing for an effective date.
9
10 Be It Enacted by the Legislature of the State of Wyoming:
11
12 Section
1. The legislature recognizes
that one of the
13 critical needs for the development
of Wyoming's vast energy
14 resources is the acquisition of
rights-of-way for
15 transmission lines and pipelines.
These transmission
16 corridors often span multiple
counties and mechanisms need
Page 1
1 to be in place to allow
for orderly funding, acquisition
2
and management of these important statewide assets. It is
3
the intent of this act to provide for the funding,
4
acquisition and management of such rights-of-way.
5
6 Section
2. W.S.
9-4-701(e)(intro), (q)(ii), (iii)(C),
7
(D) and (vi), 15-1-702(a)(intro) and (i),
8
16-1-104(c)(intro) and by creating a new paragraph (xii),
9
16-1-107(a) by creating a new paragraph (vi) and
10 16-1-108(a) are amended to read:
11
12 9-4-701. Permissible investments;
treasurer's rules
13 and regulations.
14
15 (e) The
limitation on legislatively designated
16 investments under W.S. 9-4-712
applies to this investment.
17 To assist Wyoming's small
businesses, the state treasurer
18 may invest or commit to invest and
keep invested an amount
19 not to exceed thirty-five million dollars ($35,000,000.00) 20 fifty-five million dollars ($55,000,000.00) of any
state
21 permanent funds available for
investment, excluding
22 permanent funds allocated for joint
powers loans, farm and
23 ranch loans, water development
loans, or real estate
24 mortgages, through the purchase of
portions of Small
Page 2
1 Business
Administration loans, Farmers Home Administration
2
business and industry loans and Economic Development
3
Administration loans. No new investments pursuant to this
4
subsection shall be made after December 31, 2003
2006.
5
Investment by the state treasurer shall be limited to the
6
portion of the loan that is guaranteed by the Small
7
Business Administration, Farmers Home Administration or
8
Economic Development Administration. Any assignment of
9
loans to the state treasurer under this subsection shall
10 provide that the Small Business
Administration loan
11 participant, Farmers Home
Administration loan participant
12 or Economic Development
Administration loan participant
13 originating the loan and any
assignee thereof shall service
14 the loan and make payments of
principal and interest to the
15 state treasurer as provided by rule,
and in the event of
16 default of the loan or the terms of
the loan, be
17 responsible for the collection of
the debt. For the first
18 five (5) years of the loan, the
interest rates contained in
19 the loans shall be as established by
the state treasurer
20 but not less than the yield of the
five (5) year federal
21 treasury bond at the date of
commitment. Following the
22 first five (5) years of the loan,
the interest rate shall
23 be adjusted to the then current
interest rate required in
24 the note and loan agreements. The
state treasurer shall
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1 promulgate
rules and regulations governing the investment
2
of state funds under this subsection including the
3
following:
4
5 (q) The
limitation on legislatively designated
6
investments under W.S. 9-4-712 applies to this investment.
7
To promote economic development and in addition to the
8
authority under paragraph (a)(iii) of this section, the
9
state treasurer is authorized to invest and keep invested
10 not to exceed thirty-five million dollars ($35,000,000.00) 11 one hundred million dollars ($100,000,000.00) of
any state
12 permanent funds available for
investment through the
13 purchase of industrial development
bonds issued by
14 municipalities or counties under
W.S. 15-1-701 through
15 15-1-710 subject to the terms and conditions
specified
16 under this subsection. By December
31 of each calendar
17 year, the state treasurer and the
Wyoming business council
18 shall each provide a report to the
joint minerals, business
19 and economic development committee
on the effectiveness of
20 the investment program authorized by
this subsection. The
21 reports shall include the costs
incurred by the state to
22 the permanent mineral trust fund,
and the revenue received
23 by the Wyoming business council
through fees and businesses
24 who utilized the program:
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1
2 (ii) No
investment shall be made under this
3
subsection unless:
4
5 (A) The bonds
are to finance the cost of
6
acquisition of land or rights-of-way
and the purchase,
7 construction, and installation and
operation of buildings,
8 appurtenant personal property and
equipment which will add
9 economic value to goods, services or
resources within or
10 outside this state. The buildings, appurtenant personal
11 property and equipment shall be used:
12
13 (I) As part of the construction of a
14 facility or
infrastructure for manufacturing,
or processing
15 or
generating power, transporting oil or gas, transmitting
16 electricity, providing telecommunications, or utility
17 services; or
18
19 (II) For commercial or business
20 enterprises or their infrastructure; or
21
22 (III) For reconstructing, remodeling,
23 modernizing or expanding an existing
facility which will
Page 5
1 add economic value to goods, services or resources within 2
this state or infrastructure.
3
4 (B) The Wyoming
business council shall
5
establish guidelines dependent upon the type of business
6
concerned in each project considered and shall set the
7
maximum amount of the investment to be made by the state of
8
Wyoming in each project. In setting the maximum amount of
9
investment the business council shall consider the number
10 of jobs created or preserved by the
facility and the
11 economic impact to the state which
may result from the
12 facility;
13
14 (B)(C) The bonds
bear interest at a
15 variable
interest rate, indexed to the prime rate as
16 determined by the state treasurer
pursuant to W.S.
17 39-14-108(c)(iv), adjusted annually,
which is reasonably
18 commensurate with the risk, as
recommended by the Wyoming
19 business council;, but the rate shall
be not less than the 20
average earnings on the fixed asset portion of the 21
permanent mineral trust fund for the preceding twelve (12) 22
months; and
23
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1 (C)(D) At least
twenty-five percent (25%)
2
of the total cost of the project is provided by the owner
3
of the facility. and not more than fifty percent (50%) of 4
the total cost of the project shall
come from public 5
entities of the state of Wyoming
unless the investment made 6
by the state is in insurance on the
bonds, up to eighty 7
percent (80%) of the tax exempt
project cost may be insured 8
as an investment governed by the same
rate of return so 9
noted for direct bond investment
under this subsection.
10
11 (iii) No
investment shall be made under this
12 subsection unless the bonds provide:
13
14 (C) The
principal and interest are secured
15 by a pledge of revenues from the
operation of the facility
16 or
infrastructure and by a first mortgage
on the facility
17 or other
facilities or infrastructures with a loan-to-value
18 ratio not exceeding seventy-five percent (75%) of the
19 appraised value of the collateral; in lieu thereof, the 20
pledging of collateral of either United States treasury 21
zero coupon bonds with a face value exceeding the amount of 22
the investment to ensure inflation protection for the 23
state's permanent funds, or a guaranteed investment 24
contract by a company with substantial financial strength
Page 7
1 as determined pursuant to subparagraph (D) of this 2
paragraph, and the pledging of the
highest available 3
mortgage position on the facility,
and by personal 4
guarantees executed by the individual
borrowers and such 5
guarantees and pledges of the entity
owning the facility or 6
of the parent corporation of that
entity, if any, as the 7
owner or lender extends to lenders of
the remaining debt 8
financing. These guarantees and
pledges shall be no less 9
favorable to the state of Wyoming
than those granted other 10
lenders of the same class. In no instance shall the owner 11
of the facility, through the creation of classes of 12
lenders, be placed in a superior position to the state for 13
repayment of an investment;
14
15 (D) The
principal and interest are may be
16 secured by additional security as
required by the state
17 treasurer or governor, upon
recommendation of the Wyoming
18 business council and with the
approval as to form of the
19 attorney general.
20
21 (vi) No
investment shall be made under this
22 subsection after June 30, 2003 2006.
23
Page 8
1 15-1-702. Powers of municipalities and
counties;
2 limitations.
3
4 (a) In addition
to all other powers each
5
municipality, and county, and
multi-county joint powers
6 board has without any other
authority the power to:
7
8 (i) Acquire one
(1) or more projects located
9
within the territorial limits of the municipality or within
10 the territorial limits of the county
wherein the
11 municipality is situated, if
acquired by a municipality, or
12 located within the county, if
acquired by a county, or
13 located within multiple counties if acquired by a joint
14 powers board formed under W.S. 16-1-101 et seq.;
15
16 16-1-104. Joint powers, functions and
facilities;
17 city-county airport board; eligible senior
citizen centers.
18
19 (c) Specifically,
without limiting but subject to the
20 provisions of subsection (a) of this
section, two (2) or
21 more agencies may jointly plan, own, lease, assign, sell,
22 create, expand, finance and operate:
23
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1 (xii) Rights-of-way for
electric transmission
2 systems, oil and natural gas
pipelines, telecommunications
3 and utilities.
4
5 16-1-107. Financing of joint projects.
6
7 (a) Any joint
project consisting of property or
8
improvements or an interest therein to be owned by
9
participating agencies or a joint powers board undertaken
10 pursuant to this act may be
financed:
11
12 (vi) By industrial development project bonds
13 issued
pursuant to W.S. 15-1-701 et seq.
14
15 16-1-108. Obligations and
responsibilities of
16 participating agencies.
17
18 (a) No
participating agency nor any legal entity
19 created pursuant to this act shall
construct, operate or
20 maintain any facility or improvement
other than for service
21 to and use by the participating
agencies and their resident
22 customers,
except for undertakings pursuant to W.S.
23 16-1-104(c)(xii).
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1
2 Section 3. This act is effective immediately upon
3
completion of all acts necessary for a bill to become law
4
as provided by Article 4, Section 8 of the Wyoming
5
Constitution.
6
7 (END)
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