Bill No.: HB0005                  Drafter:  DKG

LSO No.:  11LSO-0095              Effective Date:  3/2/2011

Enrolled Act No.:  HEA0037

Chapter No.:       123

Prime Sponsor:     Select Committee on Capital Financing and Investments

Catch Title:       University revenue bond supplemental coverage.

Subject:  Supplemental coverage for University of Wyoming revenue bonds.

Summary/Major Elements:

● This act requires the State to provide supplemental coverage for University of Wyoming revenue bonds (issued for capital construction projects).

● The bonds would still be primarily supported by pledged University revenues, but the State would make available up to $18 million dollars annually from "over the cap" federal mineral royalties should the University pledged revenues be insufficient to make bond payments.

● The supplemental program will be subject state loan and investment board approval and rules adopted by the board.

● If supplemental coverage is sought, the University must apply to the board.  The act also limits the maximum debt service ratio that is eligible for coverage.

● If the state is required to pay under the program, the University is deemed to have borrowed funds from the state and must repay the loan with interest from specified revenues. 

● The goal of the program is to reduce borrowing costs of the University.