SF0052 - Partnership challenge loan program-amendments.

2001

State of Wyoming

01LSO-0255.E1

ENGROSSED

SENATE FILE NO. SF0052

Partnership challenge loan program-amendments.

Sponsored by: Senator(s) Hawks and Representative(s) Cohee

A BILL

for

1 AN ACT relating to the partnership challenge loan program;
2 defining a term; providing for loans of state funds to
3 businesses under certain circumstances; requiring a report;
4 and providing for an effective date.

6 Be It Enacted by the Legislature of the State of Wyoming:

8 Section 1. W.S. 9-12-301(a) by creating a new
9 paragraph (vi), 9-12-302(a), 9-12-304(a)(intro), (b)(i) and
10 by creating a new subsection (d) and 9-12-306 are amended
11 to read:

13 9-12-301. Definitions.

15 (a) As used in this article:

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1 (vi) "Bridge financing" means the provision of
2 financing for that portion of the total project cost which
3 is calculated by subtracting from total project cost the
4 sum of ownership debt and equity. The council shall not
5 consider a proposal in which the bridge financing component
6 exceeds thirty-five percent (35%) of total project cost and
7 the business does not contribute more than fifteen percent
8 (15%) of the total project cost.

10 9-12-302. Wyoming partnership challenge loan program;
11 creation; rulemaking; administration account.

13 (a) The council shall establish and administer a
14 partnership challenge loan program under this article and
15 may contract for necessary professional services. Loans
16 authorized under the program shall be limited, except as
17 otherwise provided under W.S. 9-12-304(c) and (d), to
18 community development organizations and state development
19 organizations and made in accordance with the provisions of
20 W.S. 9-12-304. Any community development organization or
21 state development organization may submit an application to
22 the council to participate in the program on forms
23 prescribed by and subject to rules promulgated by the
24 council.

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2 9-12-304. Criteria for loans.

4 (a) Except as otherwise provided under W.S.
5 9-12-304(c) and (d), loans under this article may only be
6 made by the council to community development organizations
7 and state development organizations which meet the
8 following eligibility criteria:

10 (b) Loans or loan commitments or any combination
11 thereof shall be made under this article only:

13 (i) If the total amount to a single community
14 development organization, or to a business for an economic
15 disaster loan as provided under subsection (c) of this
16 section or to a business for bridge financing as provided
17 under subsection (d) of this section, does not exceed two
18 hundred fifty thousand dollars ($250,000.00), or if the
19 total amount to a state development organization does not
20 exceed one million dollars ($1,000,000.00);

22 (d) Any business may apply to the council for bridge
23 financing as defined in W.S. 9-12-301(a)(vi). The council
24 shall prescribe the form and contents of such application.

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1 The council shall review each application and make a
2 determination as soon as practicable. In the event of a
3 default for any loan made under this subsection, liability
4 shall be shared proportionately between the state and the
5 lending institution in the same percentage as the source of
6 the loan. The interest of the state and the lending
7 institution shall have priority over any claim of the
8 business receiving the bridge financing or any other third
9 party.

11 9-12-306. Audit; report.

13 (a) The director of the state department of audit or
14 his designee shall annually examine the loan program
15 created under this article and submit his report of
16 examination to the governor, the legislature and the
17 council. This examination shall include a financial and
18 compliance audit of the council's operations, and such
19 financial audit of borrowers under this article as the
20 examiner deems appropriate. As a condition of any loan
21 under this article, the borrower shall agree to allow the
22 examiner to examine its books and records. The examiner
23 shall treat all proprietary information received in the
24 course of the examination or audit as confidential.

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2 (b) On or before July 15 of each year, the council
3 shall submit a written report to the joint minerals,
4 business and economic development interim committee
5 reviewing rules adopted by the council during the reporting
6 period, presenting a portfolio of loans made under the
7 program and presenting a risk analysis of the portfolio of
8 loans prepared by the state banking commissioner.

10 Section 2. This act is effective July 1, 2001.

12 (END)

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