ORIGINAL HOUSE                                   ENGROSSED

BILL   NO.  0301

 

ENROLLED ACT NO. 87,  HOUSE OF REPRESENTATIVES

 

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

 

 

 

 

AN ACT relating to investment of state funds; increasing
the amount and duration of time for the state treasurer to
invest in small business loans under this section; allowing
the state treasurer to purchase bonds for industrial
development projects; modifying the conditions for the
state treasurer to invest in industrial development bonds;
amending the purpose for which such bonds may be utilized;
and providing for an effective date.

 

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

 

Section 1.  W.S. 9-4-701(e)(intro), (q)(ii), (iii)(C),
(D) and (vi), 15-1-702(a)(intro) and (i),
16-1-104(c)(intro) and by creating a new paragraph (xii),
16-1-107(a) by creating a new paragraph (vi) and
16-1-108(a) are amended to read:

 

9-4-701.  Permissible investments; treasurer's rules
and regulations.

 

(e)  The limitation on legislatively designated
investments under W.S. 9-4-712 applies to this investment.
To assist Wyoming's small businesses, the state treasurer
may invest or commit to invest and keep invested an amount
not to exceed thirty-five million dollars ($35,000,000.00)
fifty-five million dollars ($55,000,000.00) of any state
permanent funds available for investment, excluding
permanent funds allocated for joint powers loans, farm and
ranch loans, water development loans, or real estate
mortgages, through the purchase of portions of Small
Business Administration loans, Farmers Home Administration
business and industry loans and Economic Development
Administration loans. No new investments pursuant to this
subsection shall be made after December 31, 2003 2006.
Investment by the state treasurer shall be limited to the

 

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portion of the loan that is guaranteed by the Small
Business Administration, Farmers Home Administration or
Economic Development Administration. Any assignment of
loans to the state treasurer under this subsection shall
provide that the Small Business Administration loan
participant, Farmers Home Administration loan participant
or Economic Development Administration loan participant
originating the loan and any assignee thereof shall service
the loan and make payments of principal and interest to the
state treasurer as provided by rule, and in the event of
default of the loan or the terms of the loan, be
responsible for the collection of the debt. For the first
five (5) years of the loan, the interest rates contained in
the loans shall be as established by the state treasurer
but not less than the yield of the five (5) year federal
treasury bond at the date of commitment. Following the
first five (5) years of the loan, the interest rate shall
be adjusted to the then current interest rate required in
the note and loan agreements. The state treasurer shall
promulgate rules and regulations governing the investment
of state funds under this subsection including the
following:

 

(q)  The limitation on legislatively designated
investments under W.S. 9-4-712 applies to this investment.
To promote economic development and in addition to the
authority under paragraph (a)(iii) of this section, the
state treasurer is authorized to invest and keep invested
not to exceed thirty-five million dollars ($35,000,000.00)
one hundred million dollars ($100,000,000.00) of any state
permanent funds available for investment through the
purchase of industrial development bonds issued by joint
powers boards,
municipalities or counties under W.S.
15-1-701 through 15-1-710 subject to the terms and
conditions specified under this subsection. By December 31
of each calendar year, the state treasurer and the Wyoming

 

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business council shall each provide a report to the joint
minerals, business and economic development committee on
the effectiveness of the investment program authorized by
this subsection. The reports shall include the costs
incurred by the state to the permanent mineral trust fund,
and the revenue received by the Wyoming business council
through fees and businesses who utilized the program:

 

(ii)  No investment shall be made under this
subsection unless:

 

(A)  The bonds are to finance the cost of
acquisition of land or rights-of-way and the purchase,
construction,
and installation of buildings, appurtenant
personal property and
equipment which will add economic
value to goods, services or resources within or outside
this state. Any right-of-way acquired under the provisions
of this paragraph shall follow an existing utility corridor
whenever practical. The buildings, appurtenant personal
property and equipment shall be used:

 

(I)  As part of the construction of a
facility or infrastructure for manufacturing, or processing
or generating power, transporting oil or gas, transmitting
electricity, providing telecommunications, or utility
services;
or

 

(II)  For commercial or business
enterprises or their infrastructure; or

 

(III)  For reconstructing, remodeling,
modernizing or expanding an existing facility which will
add economic value to goods, services or resources within
this state
or infrastructure.

 

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(B)  The Wyoming business council shall
establish guidelines dependent upon the type of business
concerned in each project considered and shall set the
maximum amount of the investment to be made by the state of
Wyoming in each project. In setting the maximum amount of
investment the business council shall consider the number
of jobs created or preserved by the facility and the
economic impact to the state which may result from the
facility. The council shall review each project considered
with the Wyoming energy commission created pursuant to W.S.
30-6-601, provided the project being considered involves an
area over which the commission has been given authority
;

 

(B)(C)  The bonds bear interest at a
variable interest rate, indexed to the prime rate as
determined by the state treasurer pursuant to W.S.
39-14-108(c)(iv), adjusted annually, which is reasonably
commensurate with the risk, as recommended by the Wyoming
business council;, but the rate shall be not less than the
average earnings on the fixed asset portion of the
permanent mineral trust fund for the preceding twelve (12)
months;
and

 

(C)(D)  At least twenty-five percent (25%)
of the total cost of the project is provided by the owner
of the facility. and not more than fifty percent (50%) of
the total cost of the project shall come from public
entities of the state of Wyoming unless the investment made
by the state is in insurance on the bonds, up to eighty
percent (80%) of the tax exempt project cost may be insured
as an investment governed by the same rate of return so
noted for direct bond investment under this subsection.

 

(iii)  No investment shall be made under this
subsection unless the bonds provide:

 

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(C)  The principal and interest are secured
by a pledge of revenues from the operation of the facility
or infrastructure and by a first mortgage on the facility
or other facilities or infrastructures with a loan-to-value
ratio not exceeding seventy-five percent (75%) of the
appraised value of the collateral;
in lieu thereof, the
pledging of collateral of either United States treasury
zero coupon bonds with a face value exceeding the amount of
the investment to ensure inflation protection for the
state's permanent funds, or a guaranteed investment
contract by a company with substantial financial strength
as determined pursuant to subparagraph (D) of this
paragraph, and the pledging of the highest available
mortgage position on the facility, and by personal
guarantees executed by the individual borrowers and such
guarantees and pledges of the entity owning the facility or
of the parent corporation of that entity, if any, as the
owner or lender extends to lenders of the remaining debt
financing. These guarantees and pledges shall be no less
favorable to the state of Wyoming than those granted other
lenders of the same class. In no instance shall the owner
of the facility, through the creation of classes of
lenders, be placed in a superior position to the state for
repayment of an investment;

 

(D)  The principal and interest are may be
secured by additional security as required by the state
treasurer or governor, upon recommendation of the Wyoming
business council and with the approval as to form of the
attorney general.

 

(vi)  No investment shall be made under this
subsection after June 30, 2003 2006.

 

15-1-702.  Powers of municipalities and counties;
limitations.

 

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(a)  In addition to all other powers each
municipality, and county, and multi-county joint powers
board
has without any other authority the power to:

 

(i)  Acquire one (1) or more projects located
within the territorial limits of the municipality or within
the territorial limits of the county wherein the
municipality is situated, if acquired by a municipality, or
located within the county, if acquired by a county, or
located within multiple counties if acquired by a joint
powers board formed under W.S. 16-1-101 et seq.;

 

16-1-104.  Joint powers, functions and facilities;
city-county airport board; eligible senior citizen centers.

 

(c)  Specifically, without limiting but subject to the
provisions of subsection (a) of this section, two (2) or
more agencies may jointly plan, own, lease, assign, sell,
create, expand, finance and operate:

 

(xii)  Rights-of-way for electric transmission
systems, oil and natural gas pipelines, telecommunications
and utilities. Any right-of-way acquired under the
provisions of this subsection shall follow an existing
utility corridor whenever practical.

 

16-1-107.  Financing of joint projects.

 

(a)  Any joint project consisting of property or
improvements or an interest therein to be owned by
participating agencies or a joint powers board undertaken
pursuant to this act may be financed:

 

(vi)  By industrial development project bonds
issued pursuant to W.S. 15-1-701 et seq.

 

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16-1-108.  Obligations and responsibilities of
participating agencies.

 

(a)  No participating agency nor any legal entity
created pursuant to this act shall construct, operate or
maintain any facility or improvement other than for service
to and use by the participating agencies and their resident
customers, except for undertakings pursuant to W.S.
16-1-104(c)(xii)
.

 

Section 2.  This act is effective immediately upon
completion of all acts necessary for a bill to become law
as provided by Article 4, Section 8 of the Wyoming
Constitution.

 

(END)

 

 

 

 

                                     

Speaker of the House                  President of the Senate

 

                                              

                 Governor                     

                                              

                 TIME APPROVED: _________     

                 DATE APPROVED: _________     

 

I hereby certify that this act originated in the House.

 

 

Chief Clerk

 

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