SF0097SW001

 

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.

 

(c)    The treasurer may issue loans or loan guarantees for projects under this act which:

 

(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;

 

(C)  A substantial increase in the sales, property or other tax revenues to the county where the project will be located;

 

(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.

 

(f)  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.

 

(e)  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.

 

(f)  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.

 

(g)  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