S.F. No 0097

S.F. No. 0097

Large project economic development loans.

Sponsored By: Senator(s) Coe, Anderson, JD S02, Geis, Landen, Nicholas, P., Peterson and Rothfuss and Representative(s) Blevins, Greear, Harshman, Krone, Larsen and Northrup

AN ACT relating to economic development; providing an appropriation to the revolving investment fund created pursuant to Article XVI, Section 12 of the Wyoming constitution; providing for loans for economic development projects as specified; requiring matching funds; and providing for an effective date.

2/11/2014 Bill Number Assigned

2/12/2014 S Received for Introduction

2/13/2014 S Introduced and Referred to S09

ROLL CALL

Ayes: Senator(s) Anderson, JD S02, Anderson, JL S28, Barnard, Bebout, Christensen, Coe, Cooper, Craft, Driskill, Emerich, Esquibel, F., Geis, Hastert, Hicks, Johnson, Landen, Nicholas, P., Nutting, Perkins, Peterson, Ross and Rothfuss

Nays: Senator(s) Burns, Case, Dockstader, Hines, Meier, Schiffer, Scott and Von Flatern

Ayes 22 Nays 8 Excused 0 Absent 0 Conflicts 0

2/19/2014 S09 Recommended Amend and Do Pass

ROLL CALL

Ayes: Senator(s) Anderson, JD S02, Coe, Cooper and Rothfuss

Nays: Senator(s) Hines

Ayes 4 Nays 1 Excused 0 Absent 0 Conflicts 0

2/19/2014 S Placed on General File

2/19/2014 S Rereferred to S02

2/20/2014 S02 Recommended Amend and Do Pass

ROLL CALL

Ayes: Senator(s) Bebout, Dockstader, Hastert and Perkins

Nays: Senator(s) Meier

Ayes 4 Nays 1 Excused 0 Absent 0 Conflicts 0

2/20/2014 S Placed on General File

SF0097SS001/ADOPTED

Page 1-line 10 Delete "twenty-four million four" insert "thirty million dollars ($30,000,000.00)".

Page 1-line 11 Delete through "($24,400,000.00)".

Page 2-line 10 Delete "one (1) loan" insert "grants or loans".

Page 2-line 11 Delete "the first" insert "any".

Page 2-line 12 After "city" insert ", town, county or joint powers board".

Page 2-line 13 Delete "the".

Page 2-line 14 Delete and insert "infrastructure for the expansion of recruitment of a large business. All infrastructure funded by this appropriation shall be owned by the applicant. Grants and loans may be made by the council for economic development infrastructure projects, including the purchase of land, buildings, facilities, telecommunications infrastructure, rights of way, airports, sewer and water projects, roads, landscaping or other infrastructure determined by the council to be consistent with the purposes of this section.".

Page 2-line 15 Delete "project.".

Page 2-line 17 Delete and insert "grants or loans made under this section. The council shall consider the legislative intent of this section that these funds shall be used for projects which are anticipated to have an impact on the community beyond that anticipated for projects normally funded under the business ready community program. The council may also recognize the relative impact of the proposed project in consideration of the size of the community impacted.".

Page 2-line 18 Delete "not a grant.".

Page 2-line 19 After "a" insert "grant or"; delete "city" insert "applicant".

Page 2-line 21 Delete "seventy-one" insert "seventy million dollars ($70,000,000.00)"

Page 2-line 22 Delete through "($71,500,000.00)".

Page 2-line 23 Delete "The" insert "Grants or loans".

Page 2-line 24 Delete "loan"; delete "is" insert "are".

Page 3-line 2 Delete "the loan is" insert "loans made under this section are".

Page 3-after line 4 Insert:

"(c) The appropriation under subsection (a) of this section shall not be expended except in compliance with the following:

(i) An independent third party, approved by the Wyoming business council, at the expense of the applicant shall provide an analysis of:

(A) The economic benefit to the applicant including the creation of additional employment opportunities, expansion of the tax base, increasing sales, property or other tax revenues to the applicant and maintenance and promotion of a stable, balanced and diversified economy;

(B) The feasibility of the project, the financial responsibility and capacity of the business and historical financial information for the business for the previous five (5) years.

(ii) All contracts and agreements concerning the project shall be reviewed by the attorney general prior to a recommendation by the Wyoming business council to the state loan and investment board;

(iii) Any grant or loan recommended by the council under this section shall be subject to approval by the governor.". HINES, CHAIRMAN

SF0097SS002/ADOPTED

Page 1-line 3 Delete "providing an appropriation;".

Page 1-lines 10 through 12 Delete including the First Senate Standing Committee Amendment (SF0097SS001/A) to these lines and insert:

"(a) If additional funds are appropriated from the general fund to the business ready community account, the".

Page 1-line 14 Delete "This" insert "The".

Page 2-line 2 Delete "this" insert "the".

Page 2-line 4 Delete "this" insert "the".

Page 2-line 9 Delete "the" insert "any".

Page 2-line 10 Delete "the" insert "any".

Page 2-line 11 Delete "in" insert "under".

BEBOUT, CHAIRMAN

SF0097SW001/ADOPTED

Page 1-Above line 1 In the catch title delete entirely and insert "Large fund economic development loans.".

Page 1 line 1 through Page 3 line 9 Delete entirely and insert:

"AN ACT relating to economic development; providing an appropriation to the revolving investment fund created pursuant to Article XVI, Section 12 of the Wyoming constitution; providing for loans for economic development projects as specified; requiring matching funds; and providing for an effective date.

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

Section 1.

9‑12‑305. Economic development enterprise fund account; deposits; continuous appropriation; loans.

Except for fees deposited in accordance with W.S. 9‑12‑302(b), all repayments of principal and interest to the state in connection with loans made under this article and other funds as appropriated by the legislature for the challenge loan program shall be deposited into the economic development enterprise account within the revolving investment fund. All funds in the account may be used for and are continuously appropriated for loans authorized to be made under this article. Funds within the account may also be transferred upon direction of the governor to the large project account created by 2014 Senate File 97 as enacted into law, if required to meet loans or loan guarantees approved by the state loan and investment board under that law. The total principal balance of outstanding loans shall not exceed the amounts appropriated by the legislature plus interest accrued and collected less any losses of loan principal or interest.

Section 2.

(a) There is created a large project account within the revolving investment fund created pursuant to article XVI, section 12 of the constitution of the state of Wyoming. Funds with the large project account shall be used exclusively for economic development loans and loan guarantees as provided in this act.

(b) Loans or loan guaranties authorized by this act shall be used exclusively to promote and aid economic development of the state by providing loan guarantees or loans to proposed or existing enterprises which will employ people within the state, provide services in the state, use resources in the state or otherwise add economic value to goods, services or resources within the state consistent with this act.

(i) Are first submitted to and reviewed by the governor and recommended by the governor for review by the Wyoming business council. The governor may establish parameters for his review and recommendation of applications;

(ii) Have subsequently been submitted for review by the Wyoming business council under the process set forth in W.S. 9‑12‑601 through 9‑12‑603 and rules promulgated under those provision, subject to the provisions of this act; and

(iii) Have been approved by the state loan and investment board following consideration by the Wyoming business council. The council shall forward to the board all applications submitted in accordance with this act which the governor has recommended for review.

(d) The governor shall recommend and the state loan and investment board shall only approve the issuance of loan guarantees and loans under this act for projects which meet the following minimum requirements:

(i) Are anticipated to have an economic impact and a public benefit greater than the economic impact and public benefit of projects regularly funded under the Wyoming business ready community program;

(ii) Based upon the findings of an independent third party approved by the Wyoming business council, will provide the following minimum public benefits:

(A) The creation of at least one hundred (100) permanent jobs;

(B) Proportionally expands the assessed valuation of the counties or counties in which the project will be located, by not less than the value of the loans or loan guarantees received by the applicant borrower;

(D) Promotion of a stable, balanced and diversified economy; and

(E) A cash investment by the project in infrastructure not less than three (3) times the amount of any proposed loan guarantee or loan.

(iii) Has a high likelihood of completion.

(e) The state treasurer shall establish the terms of any loan issued under this section in accordance with the following:

(i) Loans provided under this section shall be adequately collateralized as determined by the state treasurer;

(ii) The treasurer shall adopt interest rates to be charged for loans under this section as approved by the state loan and investment board pursuant to this act and following consideration by the Wyoming business council;

(iii) The state treasurer shall ensure through certification by the applicant, or any other manner determined to be adequate by the state treasurer, a commitment of private funds in an amount which is at least three (3) times the requested loan amount;

(iv) To qualify as an investment of private funds in under this act, the private funds shall be a new investment in infrastructure and buildings in the state. Private funds secured for or committed to existing debt obligations shall not qualify as new investment for purposes of this act;

(v) Borrowers shall demonstrate a balance sheet and cash flow sufficient to demonstrate their ability to repay the loan;

(vi) Borrowers shall offer security to repay the loan with a residual value sufficient to repay the loan in event of default;

(vii) When appropriate, the state treasurer may require continuing loan guaranties by affiliates of the borrower; and

(viii) The state treasurer shall secure a first security interest on the entire project funded, in part, with loan proceeds issued under this section, including infrastructure and buildings financed with other funds; and

(ix) The state treasurer may charge a loan origination fee not to exceed one percent (1.0%) of the total loan amount. Funds collected under this paragraph shall be deposited in the 2014 funding account or used to pay for the costs of experts retained by the state treasurer pursuant to subsection (g) of this section.

(f) No loan or loan guarantee shall be made under this act without the written opinion of the attorney general certifying the legality of the transaction and all documents connected therewith.

(g) Repayment of principal and interest to the state in connection with loans made under this act shall be deposited to the large project account created by this act. Earnings on funds within the account shall be credited to the account. All funds within the account may be used for and are continuously appropriated for the purposes of this act. The total principal balance of outstanding loans under this act shall not exceed the amounts appropriated by the legislature plus interest accrued and collected less any losses of loan principle.

(h) The state treasurer is authorized to employ such experts as necessary to fully evaluate and negotiate the terms and conditions of the loan and loan guarantees. If a loan origination fee is not charged for a loan for which experts are retained by the state treasurer under paragraph (d)(ix) of this section, payment to experts retained under this section shall be made by the Wyoming business council.

Section 3.

(a) There is appropriated up to twenty-five million dollars ($25,000,000.00) from the holding account for economic development loans created by 2014 House Bill 0001, Section 300(n)(i)(A) as enacted into law, to the large project account within the revolving investment fund created by this act.

(b) The state treasurer is authorized to transfer funds appropriated by this act from the holding account for economic development loans to the large project account within the revolving investment fund as the funds become available beginning with the effective date of this act and ending December 31, 2018, subject to the limitation specified in subsection (a) of this section.

Section 4. 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.". NICHOLAS

2/21/2014 S Passed COW

SF0097S2001/ADOPTED

Delete the First Senate Standing Committee Amendment (SF0097SS001/A), the Second Senate Standing Committee Amendment (SF0097SS002/A) and the Nicholas Committee of the Whole Amendment (SF0097SW001/A) entirely and further amend as follows:

Page 1-Above line 1 In the catch title delete entirely and insert "Large fund economic development loans.".

Page 1 line 1 through Page 3 line 9 Delete entirely and insert:

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

Section 1. W.S. 9‑12‑305 is amended to read:

9‑12‑305. Economic development enterprise fund account; deposits; continuous appropriation; loans.

Section 2.

(ii) Based upon the findings of an independent third party approved by the Wyoming business council, will provide the following minimum public benefits:

(A) The creation of at least one hundred (100) permanent jobs;

(D) Promotion of a stable, balanced and diversified economy; and

(E) A cash investment in the project in infrastructure not less than three (3) times the amount of any proposed loan guarantee or loan.

(iii) Has a high likelihood of completion.

(e) The state treasurer shall establish the terms of any loan issued under this section in accordance with the following:

(i) Loans provided under this section shall be adequately collateralized as determined by the state treasurer;

(v) Borrowers shall demonstrate a balance sheet and cash flow sufficient to demonstrate their ability to repay the loan;

(vi) Borrowers shall offer security to repay the loan with a residual value sufficient to repay the loan in event of default;

(vii) When appropriate, the state treasurer may require continuing loan guaranties by affiliates of the borrower;

(f) No loan or loan guarantee shall be made under this act without the written opinion of the attorney general certifying the legality of the transaction and all documents connected therewith.

Section 3.

Section 4. 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.". NICHOLAS

2/24/2014 S Passed 2nd Reading

SF0097S3001/ADOPTED

In the Nicholas Second Reading Amendment (SF0097S2001/A), amend as follows:

Page 5-line 5 Delete "Proportionally" insert "Significantly".

Page 6-line 18 Delete "and buildings" insert ", buildings and equipment".

Page 7-line 2 Delete "offer" insert "provide".

Page 7-line 10 After "secure" insert "either".

Page 7-line 13 Delete "and buildings" insert ", buildings and equipment"; after "funds" insert "or other substitute security which will protect repayment to the state on an equal basis with the prime lender". COE, VON FLATERN

SF0097S3002/ADOPTED

In the Nicholas Second Reading Amendment (SF0097S2001/A), amend as follows:

Page 3-lines 17 through 23 Delete and insert and renumber:

"(c) Loans and loan guaranties provided under this act shall be subject to the following procedures:

(i) Any project shall first be submitted to and reviewed by the governor who may provide preliminary recommendations for the size and parameters of the proposed loan;

(ii) The project shall then be submitted to and reviewed by the state treasurer who may provide preliminary recommendations for the structure of the proposed loan or loan guaranty;

(iii) The project shall then be submitted for review to the Wyoming business council under the process set forth in W.S. 9‑12‑601 through 9‑12‑603;

(iv) The Wyoming business council's recommendations shall be forwarded to the state loan and investment board for final approval of the loan or loan guaranty;

(v) Any approved loan or loan guaranty shall thereafter be submitted to the governor for final approval following his determination that the loan has met the requirements of this act, and the state treasurer's final approval as to the structure of the loan or loan guaranty.".

Page 4-lines 1 through 10 Delete. NICHOLAS

SF0097S3003/ADOPTED

In the Nicholas Second Reading Amendment (SF0097S2001/A), amend as follows:

Page 5-lines 17 through 19 Delete and insert and renumber:

"(E) Private investment in the county or counties in buildings, equipment and direct project infrastructure of not less than three (3) times the amount of any loan or loan guaranty.". NICHOLAS

SF0097S3004/ADOPTED

In the Nicholas Second Reading Amendment (SF0097S2001/A), amend as follows:

Page 6-lines 16 through 20 Delete including the Coe Third Reading Amendment (SF0097S3001/A) to line 18 and insert and renumber:

"(iv) Loans or loan guaranties shall be used for direct investment in the project and shall not be used or made available to refinance pre-existing debt incurred before commencement of the project;". NICHOLAS

SF0097S3005/ADOPTED

In the Nicholas Second Reading Amendment (SF0097S2001/A), amend as follows:

Page 5-line 2 Delete "at least one hundred (100)" insert "a significant expansion of permanent jobs in the county or counties;".

Page 5-line 3 Delete.

Page 8-line 16 Delete "If a loan".

Page 8-line 17 Delete through "which" insert "If".

Page 8-line 19 After "this section" insert "which exceed the loan origination fee".

Page 8-after line 20 Insert and renumber:

"(h) The state treasurer shall promulgate necessary rules and regulations for the implementation of this section.". SCHIFFER

2/25/2014 S Passed 3rd Reading

ROLL CALL

Ayes: Senator(s) Anderson, JD S02, Anderson, JL S28, Barnard, Bebout, Christensen, Coe, Cooper, Craft, Dockstader, Driskill, Emerich, Esquibel, F., Geis, Hastert, Hicks, Hines, Johnson, Landen, Nicholas, P., Nutting, Perkins, Peterson, Ross, Rothfuss, Schiffer and Von Flatern

Nays: Senator(s) Burns, Case, Meier and Scott

Ayes 26 Nays 4 Excused 0 Absent 0 Conflicts 0

2/26/2014 H Received for Introduction

2/26/2014 H Introduced and Referred to H09

2/28/2014 H09 Recommended Do Pass

ROLL CALL

Ayes: Representative(s) Byrd, Cannady, Greear, Kasperik, Larsen, Lockhart, Reeder, Sommers and Winters

Ayes 9 Nays 0 Excused 0 Absent 0 Conflicts 0

2/28/2014 H Placed on General File

2/28/2014 H Rereferred to H02

2/28/2014 H02 Recommended Do Pass

ROLL CALL

Ayes: Representative(s) Burkhart, Esquibel, K., Harshman, Moniz, Nicholas, B. and Stubson

Nays: Representative(s) Blikre

Ayes 6 Nays 1 Excused 0 Absent 0 Conflicts 0

2/28/2014 H Placed on General File

SF0097HW001/ADOPTED (CORRECTED COPY) (TO ENGROSSED COPY)

Page 1-Above Line 1 In the catch title delete "fund" insert "project".

Page 1-line 4 After "loans" insert "and loan guarantees".

Page 1-line 5 After "funds;" insert "providing rulemaking authority;"

Page 3-line 4 Delete "guaranties" insert "guarantees".

Page 3-line 13 Delete "guaranties" insert "guarantees".

Page 3-line 19 After "loan" insert "or loan guarantee".

Page 3-line 24 Delete "guaranty" insert "guarantee".

Page 4-line 9 Delete "guaranty" insert "guarantee".

Page 4-line 11 Delete "guaranty" insert "guarantee".

Page 4-line 13 After "loan" insert "or loan guarantee".

Page 4-line 15 Delete "guaranty" insert "guarantee".

Page 5-line 9 After "counties" insert "in which the project will be located".

Page 5-line 11 Delete "expands" inserts "increases".

Page 6-line 2 Delete "guaranty" insert "guarantee".

Page 6-line 7 After "loan" insert "or loan guarantee".

Page 6-line 10 After "Loans" insert "or loan guarantees".

Page 6-line 23 After "loan" insert "or loan guarantee".

Page 7-line 1 Delete "guaranties" insert "guarantees".

Page 7-line 8 After "loan" insert "or loan guarantee".

Page 7-line 11 After "loan" insert "or loan guarantee".

Page 7-line 15 Delete "guaranties" insert "guarantees".

Page 7-lines 18 through 24 Delete entirely and insert:

"(viii) The state treasurer shall secure an interest in the entire project sufficient to adequately protect the investment of loan proceeds or proceeds guaranteed by the state under this section as provided in this paragraph. The state treasurer may accept either a first security interest on the entire project funded or substitute security which will protect repayment to the state on a basis substantially equivalent to a first security interest on the project. The state treasurer shall insure that any alternate security is sufficient to prudently protect the state's interest in the entire project and any alternate security places the state before any other lender in priority of payment on the entire project in the event of default; and".

Page 8-line 2 Delete "may" insert "shall".

Page 8-line 3 After "fee" insert "or loan guarantee fee".

Page 8-line 4 After "loan" insert "or guaranteed loan".

Page 8-line 7 Delete "(g)" insert "(h)".

Page 8-line 23 Delete "principle" insert "principal".

Page 9-line 5 Delete "(d)" insert "(e)".

Page 9-line 6 After "fee" insert "or loan guarantee fee".

Page 9-line 9 Delete "(h)" insert "(j)".

Page 10-line 3 Delete "December 31, 2018" insert "June 30, 2016.

Page 10-line 4 After "section." insert "Funds in the large project account within the revolving investment fund which are not encumbered as of June 30, 2016 shall not be expended except upon further act of the legislature.".

Renumber as necessary. NORTHRUP

3/3/2014 H Passed COW

SF0097H2001/WITHDRAWN

3/4/2014 H Passed 2nd Reading

SF0097H3001/ADOPTED (TO ENGROSSED COPY)

Page 6-line 12 After "treasurer" insert ". To protect the state's interest, the state treasurer may negotiate protections with respect to any accepted collateral, including but not limited to, escrow accounts, debt limitations, cash sweeps, pledge rights, corporate approval rights and other mechanisms the state treasurer deems appropriate".

Page 7-lines 18 through 24 Delete entirely including the Northrup committee of the whole amendment (SF0097HW001/A) to these lines and insert:

"(viii) Except as provided in this paragraph, the state treasurer shall secure a first security interest in the entire project sufficient to adequately protect the investment of loan proceeds or proceeds guaranteed by the state under this section. If necessary, the state treasurer may accept substitute security which will protect repayment to the state on a basis substantially equivalent to a first security interest on the project. The state treasurer shall insure that any alternate security is sufficient to prudently protect the state's interest in the entire project and any alternate security places the state before any other lender in priority of payment on the entire project in the event of default; and". NORTHRUP, JAGGI

SF0097H3002/ADOPTED (TO ENGROSSED COPY)

Page 8-line 3 Delete "not to exceed" insert "of". ZWONITZER, DV.

3/5/2014 H Passed 3rd Reading

ROLL CALL

Ayes: Representative(s) Barlow, Berger, Blake, Blevins, Brown, Burkhart, Byrd, Campbell, Cannady, Connolly, Davison, Eklund, Esquibel, K., Filer, Freeman, Gingery, Goggles, Greear, Greene, Harshman, Harvey, Hunt, Kasperik, Kirkbride, Krone, Larsen, Lockhart, Lubnau, Madden, Mader, Miller, Moniz, Nicholas, B., Northrup, Patton, Paxton, Petroff, Sommers, Stubson, Teeters, Throne, Walters, Wilson, Winters and Zwonitzer, Dn.

Nays: Representative(s) Baker, Blikre, Gay, Halverson, Hutchings, Jaggi, Kroeker, Loucks, McKim, Piiparinen, Reeder, Semlek, Watt and Zwonitzer, Dv.

Conflicts: Representative(s) Coleman

Ayes 45 Nays 14 Excused 0 Absent 0 Conflicts 1

3/5/2014 S Received for Concurrence

3/5/2014 S Did Concur

ROLL CALL

Nays: Senator(s) Burns, Case, Meier and Scott

Ayes 26 Nays 4 Excused 0 Absent 0 Conflicts 0

3/5/2014 Assigned Number SEA No. 0062

3/6/2014 S President Signed SEA No. 0062

3/6/2014 H Speaker Signed SEA No. 0062

3/7/2014 Governor Signed SEA No. 0062

3/7/2014 Assigned Chapter Number

Chapter No. 0046 Session Laws of Wyoming 2014