HB0301 - State investments-economic development.
|
2001 |
State of Wyoming |
01LSO-0527 |
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)
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)
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. The buildings,
9 appurtenant personal property and equipment shall be used:
10
11 (I) As part of the construction of a
12 facility or
infrastructure for manufacturing,
or processing
13 or generating
power, transporting oil or gas, transmitting
14 electricity,
providing telecommunications, or utility
15 services; or
16
17 (II) For commercial or business
18 enterprises or
their infrastructure; or
19
20 (III) For reconstructing, remodeling,
21 modernizing or expanding an existing
facility which will
22 add economic value to goods, services or
resources within
23 or outside
this state.
24
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1 (B) The Wyoming
business council shall
2
establish guidelines dependent upon the type of business
3 concerned
in each project considered and shall set the
4
maximum amount of the investment to be made by the state of
5
Wyoming in each project. In setting the maximum amount of
6
investment the business council shall consider the number
7 of
jobs created or preserved by the facility and the
8
economic impact to the state which may result from the
9
facility;
10
11 (B)(C) The bonds
bear interest at a
12 variable
interest rate, indexed to the prime rate as
13 determined by the state treasurer pursuant
to W.S.
14 39-14-108(c)(iv), adjusted annually, which
is reasonably
15 commensurate with the risk, as recommended
by the Wyoming
16 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
20
21 (C)(D) At least
twenty-five percent (25%)
22 of the total cost of the project is provided
by the owner
23 of the facility. and not more than fifty percent (50%) of
the total cost
of the project shall come from public
Page 6
1 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.
6
7 (iii) No
investment shall be made under this
8
subsection unless the bonds provide:
9
10 (C) The
principal and interest are secured
11 by a pledge of revenues from the operation
of the facility
12 and by a first mortgage
on the facility or other facilities
13 with a
loan-to-value ratio not exceeding seventy-five
14 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
Page 7
1 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;
9
10 (D) The
principal and interest are may be
11 secured by additional security as required
by the state
12 treasurer or governor, upon recommendation
of the Wyoming
13 business council and with the approval as to
form of the
14 attorney general.
15
16 (vi) No
investment shall be made under this
17 subsection after June 30, 2003 2006.
18
19 15-1-702. Powers of municipalities and
counties;
20 limitations.
21
22 (a) In addition
to all other powers each
23 municipality,
and county,
and multi-county joint powers
24 board
has without any other authority the power to:
Page 8
1
2 (i) Acquire one
(1) or more projects located
3
within the territorial limits of the municipality or within
4 the
territorial limits of the county wherein the
5
municipality is situated, if acquired by a municipality, or
6
located within the county, if acquired by a county, or
7 located within multiple counties if acquired by a joint
8 powers board formed under W.S. 16-1-101 et seq.;
9
10 16-1-104. Joint powers, functions and
facilities;
11 city-county airport board; eligible senior citizen centers.
12
13 (c) Specifically,
without limiting but subject to the
14 provisions of subsection (a) of this
section, two (2) or
15 more agencies may jointly plan, own, lease, assign, sell,
16 create, expand, finance and operate:
17
18 (xii) Rights-of-way for electric transmission
19 systems,
oil and natural gas pipelines, telecommunications
20 and
utilities.
21
22 16-1-107. Financing of joint projects.
23
Page 9
1 (a) Any joint
project consisting of property or
2
improvements or an interest therein to be owned by
3
participating agencies or a joint powers board undertaken
4
pursuant to this act may be financed:
5
6 (vi) By industrial
development project bonds
7 issued pursuant to W.S. 15-1-107 et
seq.
8
9 16-1-108. Obligations and responsibilities
of
10 participating agencies.
11
12 (a) No
participating agency nor any legal entity
13 created pursuant to this act shall
construct, operate or
14 maintain any facility or improvement other
than for service
15 to and use by the participating agencies and
their resident
16 customers, except
for undertakings pursuant to W.S.
17 16-1-104(c)(xii).
18
19 Section 3. This act is
effective immediately upon
20 completion of all acts necessary for a bill
to become law
21 as provided by Article 4, Section 8 of the
Wyoming
22 Constitution.
23
24 (END)
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