ORIGINAL SENATE

FILE NO. 0052

ENROLLED ACT NO. 10, SENATE

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

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

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

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

9-12-301. Definitions.

(a) As used in this article:

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

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

(a) The council shall establish and administer a
partnership challenge loan program under this article and
may contract for necessary professional services. Loans
authorized under the program shall be limited, except as
otherwise provided under W.S. 9-12-304(c) and (d), to
community development organizations and state development
organizations and made in accordance with the provisions of

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W.S. 9-12-304. Any community development organization or
state development organization may submit an application to
the council to participate in the program on forms
prescribed by and subject to rules promulgated by the
council.

9-12-304. Criteria for loans.

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

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

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

(d) Any business may apply to the council for bridge
financing as defined in W.S. 9-12-301(a)(vi). The council
shall prescribe the form and contents of such application.
The council shall review each application and make a
determination as soon as practicable. In the event of a
default for any loan made under this subsection, liability
shall be shared proportionately between the state and the
lending institution in the same percentage as the source of
the loan. The interest of the state and the lending
institution shall have priority over any claim of the

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business receiving the bridge financing or any other third
party.

9-12-306. Audit; report.

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

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

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

(END)

Speaker of the House President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

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