Bill No.:           SF0097                                                Drafter: JDA

LSO No.:         14LSO-0337                                        Effective Date: Immediate

Enrolled Act No.:       SEA0062

Chapter No.:               CH0046

Prime Sponsor:           Senator Coe

Catch Title:                 Large fund economic development loans.

Subject:                       State economic development loans.

Summary/Major Elements:

· In 1986, voters approved a constitutional amendment, commonly known as “Amendment IV,” now Article 16, Section 12 of the Wyoming Constitution.  Article 16, Section 12 authorizes the use of state funds to provide loans and loan guarantees to proposed or existing entities within the state which will provide one of a list of economic benefits to the state at zero or low interest rates.

· Funds to be used for Article 16, Section 12 projects require a 2/3 vote of both houses of the legislature to be appropriated to the revolving fund created under that section.  Funds within the account shall not exceed 1% of the total assessed valuation in the state [$22.8 billion in FY2012].

· Funds within the revolving account are not subject to the various constitutional limitations on the lending of state credit or donations to entities not under the complete control of the state.

• This bill creates the large project account within the revolving investment fund.

· The bill specifies the rules for loans to be made from the account including specified public benefits and requires a matching amount of at least three times the loan amount.

· The bill also requires that any loan is first reviewed and considered by the governor and also requires review by the state treasurer, the Wyoming business council and the attorney general prior to final approval by the state loan and investment board and the governor.

· The bill requires that the state loan and investment board set the interest rate for loans issued under the act.

· The state treasurer sets the terms of the loan or loan guarantee to ensure that it is adequately collateralized, that the state has a first security interest or a similar alternate security interest equivalent, and that the loan proceeds will be used for new investment in the state.

· The bill provides a $25 million appropriation to the large project account and provides rulemaking authority to the state treasurer related to the account.