Administrative Rule Review Report #AR12-018
Legislative Service Office
02-Apr-12
AGENCY: Wyoming Business Council
DATE SUBMITTED: 3/23/2012
SUBJECT: Chapter 1, General Policies; Chapter 2, Economic Development Program; Chapter 4, Community Development Program
NATURE OF RULES: Procedural and Substantive
STATUTORY AUTHORITY: W.S. 9-12-104(a)(iv) and 9-1-216.
DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION
SUBMITTED BY THE AGENCY TO LSO:
Apparently complete to date. Please note that rules promulgated by the Wyoming Business Council (the Agency) are specifically exempt from the Wyoming Administrative Procedures Act by W.S. 9-12-103(g)(iii), but the Agency is required to submit promulgated rules to Management Council in accordance with W.S. 28-9-101 through 28-9-108, seek approval of the rules by the Governor as provided in W.S. 16-3-103(d) and file the rules with the Secretary of State (W.S. 9-12-104(a)(iv)).
SUMMARY OF RULES:
These amendments are being adopted to comply with the requirements of the United States Department of Housing and Urban Development, which is the funding source for the Community Development Block Grant Program (CDBG). These rules amend Chapter 1 (General Polices), Chapter 2 (Economic Development), repeal Chapter 3, renumber Chapter 4 as Chapter 3 (Community Development Grants) and further amend and renumber Chapter 5 as Chapter 4 (Imminent Threat Grants). Significant changes include:
Chapter 1 (General Policies):
o Section 1 (Authority): Includes a provision that the Agency shall use the CDBG program for homeownership assistance and shall use 70% of CDBG funds for the benefit of low to moderate income persons.
o Section 2 (Eligible Applicants): Deletes provisions providing for only one application for CDBG for each local government and joint applications.
o Renumbers existing Chapter 2, Section 5 as Chapter 1, Section 5 (Ineligible Activities): Lists activities that are ineligible for economic development assistance.
o Renumbers existing Chapter 2, Section 4 as Chapter 1, Section 8 (Funding Cycles and Application Approval): Funding cycle shall be semi-annual and grants shall be approved by the Agency. Existing section renumbered.
o Renumbers existing Chapter 2, Section 3 as Chapter 1, Section 9 (Applicant's Contribution): Provides for duties of an applicant for a CDBG. Existing section renumbered.
o Section 11 (Citizen Participation): Provides new guidelines for notice and public participation in the grant process.
o Section 16 (State Historic Preservation Office): Provides that cultural resources do not need to be considered when applying for planning and technical grants.
o Section 18 (Lump Sum Drawdown): Provides for lump sum drawdowns when a sub-agreement of a development agreement has been entered into between the Agency and the applicant.
o Section 19 (Timely Progress): Provides that grant agreements must be signed by the Attorney General and the Agency and that funds must be obligated within 15 months of receipt and expended within 18 months of receipt.
o Section 21 (Minority, Woman Owned and Disadvantaged Business Enterprises): Requires a subgrantee to keep a file on outreach efforts to minority, woman owned and disadvantaged business enterprises.
o Section 22 (Procurement of Professional Services): Requires adherence to federal procurement requirements of 24 CFR Part 85. Specifies that no Wyoming Contractor preference is considered with these funds. Provides for pre-qualification of consultants as provided.
Chapter 2 (Economic Development Program):
o Section 1 (Goals): To provide for the creation and retention of jobs available to low and moderate income people.
o Strikes Sections 3 through 5: These sections are amended and recreated as Chapter 1, Sections 8, 9 and 5, respectively). Renumbered as necessary.
o Section 3 (Downtown Development): Provides additional requirements that must be addressed in an application for funds for a downtown development project. Provides additional requirements for downtown development numerical ratings and deletes certain existing requirements.
o Section 4 (Economic Development Infrastructure Grants): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 5 (Planning Only Grants): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 6 (Technical Assistance Grants): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 7 (Job Training Grants): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 10 (Convertible Loan Program): Strikes the requirement that only incorporated municipalities or counties qualify as applicants under the CDBG program.
Chapter 3 (Community Development Program):
o Strikes existing Section 5 (Deadlines).
o Section 6 (Project Categories): Creates a "Homeownership Assistance" category and a Section 108 loan program to benefit low to moderate income persons.
o Section 7 (Ranking Criteria – Community Development Projects): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 8 (Minimum Submission Requirements of all Community Development Applications): Numerous amendments to this section to conform to federal regulations. A copy of the section is available upon request.
o Section 9 (Lien Requirement) – If a project is considered a "public service" by WBC, the lien requirement is waived.
FINDINGS: The rules appear to be within statutory authority and legislative intent.
STAFF RECOMMENDATIONS: That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.
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Matthew D. Obrecht
Staff Attorney
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Gerald W. Laska
Staff Attorney
MDO/cj