Local government infrastructure commission.

WORKING DRAFT
2008
STATE OF
WYOMING
08LSO-0325

HOUSE BILL
NO.
HB0170

Local government infrastructure commission.

Sponsored by:
Representative(s) Semlek and Senator(s) Meier

A BILL

for

AN ACT relating to
administration
of government
; creating
the
local government
infrastructure
and capital construction commission; transferring duties of state
loan and investment
board to local government
infrastructure
and capital construction commission as specified;
creating
a select
legislative
committee;
and providing for an effective date.

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

Section 1.

W.S. 9
‑
4
‑
608, 9
‑
4
‑
609 and 28
‑
11
‑
501 are created to read:

9
‑
4
‑
608.

Local government infrastructure and capital construction commission; membership; removal; terms.

(a)

The local government infrastructure and capital construction commission is created to consist of
twelve
(1
2
)
members
of which o
ne
(
1
) member
shall be appointed from each of the seven (7) appointment districts pursuant to W.S. 9
‑
1
‑
218
and five (5) members shall be the five (5) statewide elected officials or their designees
.

Appointments in each appointment district shall be rotated among the several c
ounties comprising the district
. Commission membership shall be
subject to the following:

(
i
)

The
nonelected official
members shall be appointed by the governor,
with confirmation by
the senate, and may be removed by the governor as provided in W.S. 9
‑
1
‑
202;

(
ii
)

Not more than
four
(
4
)
of the nonelected official
members shall be of the same political party;

(
iii
)

Appointments
of nonelected official members
ar
e for a term of four (4) years, except
four
(
4
) of the
initial
appointees shall serve two (2) year terms;

(
iv
)

No person shall be appointed for more than two (2) consecutive terms;

(
v
)

If any
nonelected official
member ceases to reside in or is absent from the appointment district from which appointed for a continuous period of six (6) months or more, the governor shall declare his office vacant and shall appoint a successor from the same d
istrict for the unexpired term;

(
vi
)

The governor shall fill vacanc
ies
for unexpired
terms
;

(
vii
)

The commission shall annually select one (1) of its members as chairman and one (1) of its members as secretary.

(b)

All grant and loan programs over which the commission has authority shall be administered by the office of state lands and investments.

9
‑
4
‑
609.

Powers, duties, salaries and expenses of commission.

(a)

The local government infrastructure and capital construction commission shall:

(i)

Have authority to contract for legal counsel upon approval of the governor to assist in matters related to local government infrastructure and
capital
construction development as directed by the commission. By request of the commission and upon approval of the governor, the legal counsel shall be entitled to use monies appropriated for legal matters relating to local government
infrastructure
and capital construction development. Legal counsel shall consult with the commission, the office of state lands and investments and attorney general on a regular basis;

(ii)

Submit an annual report of its activities, expenses, recommendations and other items to the governor
, the select committee on local government infrastructure and capital construction
and the joint
appropriations
interim
committee by December 31;

(i
ii
)

Meet quarterly and as necessary and as the governor may direct;

(
i
v)

Establish and adjust priorities for local
government
infrastructure and capital construction projects;

(v
)

Adopt rules and regulations to implement the provisions of W.S. 9
‑
4
‑
604 and 9
‑
4
‑
605;

(vi)

Perform other duties as directed by law;

(
vii
)

As nearly as possible represent and assist all interests advocating local
government
infrastructure and capital construction development in the state;

(
viii
)

Have the duty and the authority to
conduct studies, develop plans
and recommend legislation which may be enacted for the purpose of enhancing local
government
infrastructure and capital construction in the state;

(
i
x)

Establish an application fee not to exceed one thousand dollars ($1,000.00) which shall be paid by potential project beneficiaries prior to commission consideration of a project for inclusion in the mineral royalty grant and loan program. Application fees shall be deposited into the
capital construction
account;
and

(x
)

Represent or advocate the state's interests in negotiations and construction of local
government
infrastructure and capital construction projects assigned by the
legislature or the governor.

(b)

Commission members shall receive a salary of one hundred twenty-five dollars ($125.00) per day and actual and necessary traveling expenses while away from home while engaged in the performance of commission duties.

ARTICLE
5
SELECT COMMITTEE ON
LOCAL GOVERNMENT INFRASTRUCTURE AND CAPITAL CONSTRUCTION

28
‑
11
‑
501.

Appointment of members; powers and duties.

(a)

Not later than March 15 following each general election, the president of the senate shall appoint six (6) members of the senate, and the speaker of the house of representatives shall appoint six (6) members of the house to a select committee on
local
government
infrastructure and capital construction
.

Not more than four (4) members from each house shall be from the same political party.

(b)

The select committee shall:

(i)

Select from among its members a chairman and vice-chairman;

(ii)

Monitor the
activities and recommendations of the local
government
infrastructure and capital construction commission as provided in W.S.
9
‑
4
‑
609
;

(iii)

Prepare and submit recommendations to the legislature, including sponsoring legislation, to improve statutes related to the
disbursement of federal mineral royalties to local governments for local government infrastructure and capital construction
;

(
i
v)

Develop knowledge and expertise among its mem
bers regarding issues related to

local government
infrastructure
and capital construction needs throughout the state
.

(c)

The
local government
infrastructure
and capital construction commission
shall:

(i)

Provide the select committee with notice and minutes of all
commission
meetings.

The select committee and the
commission
may hold joint meetings;

(ii)

Provide information to the select committee upon request to assist the select committee to monitor progress.

(d)

The select committee may:

(i)

Secure consulting services, if necessary, to provide technical assistance regarding
local government
infrastructure
and capital construction needs throughout the state
;

(ii)

Review budgets and expenditures related to any aspect of
local government
infrastructure
and capital construction needs throughout the state
which are funded by the commission
.

Section 2.

W.S. 9
‑
4
‑
604
(a)(intro), (b), (c), (d)(iii), (vi),
(vii),
(e), (f), (g)
(i)
(intro), (ii), (h)(intro), (i)(intro), (ii),

(j), (k)(i) through (iii), (m)(intro), (n) and (o)
and 9
‑
4
‑
605
(b), (c), (d)(vi), (vii), (e), (g)(intro) and (h)
are amended to read:

9
‑
4
‑
604.

Distribution and use; capital construction projects and bonds; municipal, county and special district purposes.

(a)

Revenues received under W.S. 9
‑
4
‑
601(a)(vi) and (b)(i) shall be credited to a capital construction account. No money shall be expended from the account until the money has been appropriated by the legislature to the
state loan and investment board

local government infrastructure and capital construction commission
through the normal budget process to be used in the
board's

commission's
discretion for any purpose authorized by this section. The revenues shall be used to finance state revenue bonds as provided by this section. The balance shall be used for the making of loans or grants to incorporated cities and towns, counties and special districts as provided in this section. No loan or grant shall be made by the
state loan and investment board

commission
under the provisions of this section until the loan or grant application has been referred by the
board

commission
to a state agency for review as determined by the
board

commission
. The state agency shall provide the
board

commission
with a written review of any loan or grant application referred to the agency and any other assistance requested by the
board

commission
. No grant shall be made by the
state loan and investment board

commission
under this section to any county unless the county imposes at least eleven (11) or ninety-one and sixty-seven one-hundredths percent (91.67%) of the available mills authorized by article 15, section 5 of the Wyoming constitution, or unless the county is imposing the optional sales tax authorized under W.S. 39
‑
15
‑
204(a)(i) or (iii). No grant shall be made by the
state loan and investment board

commission
under this section to any municipality unless the municipality imposes at least seven (7) or eighty-seven and five-tenths percent (87.5%) of the available mills authorized by article 15, section 6 of the
Wyoming
constitution. No grant shall be made by the
state loan and investment board

commission
under this section to any special district or other lawful entity which imposes less than eighty percent (80%) of any authorized mill levy. The
state loan and investment board

commission
may waive the taxation requirements imposed by this subsection for good cause shown such as other funding sources, but in no case shall the
state loan and investment board

commission
authorize any grant to any municipality under this section which does not impose at least two (2) or twenty-five percent (25%) of the available mills authorized by article 15, section 6 of the Wyoming constitution. The
state loan and investment board

commission
shall grant money as authorized by this section only when the
board

commission
finds the grant is necessary to:

(b)

The
state loan and investment board

commission
shall borrow money in a principal amount not to exceed sixty million dollars ($60,000,000.00) by the issuance from time to time of one (1) or more series of revenue bonds. The
board

commission
may encumber revenues under W.S. 9
‑
4
‑
601(a)(vi) and (b)(i). Any bonds issued under this section, together with any interest accruing thereon and any prior redemption premiums due in connection therewith, are payable and collectible solely out of revenues authorized. The bond holders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute special obligations of the state and the
board

commission
shall not pledge the state's full faith and credit for payment of the bonds.

(c)

Except as otherwise provided, bonds issued under this section shall be in a form, issued in a manner, at, above or below par at a discount not exceeding ten percent (10%) of the principal amount of the bonds, at public or private sale, and issued with recitals, terms, covenants, conditions and other provisions not contrary to other applicable statutes, as may be provided by the
board

commission
in a resolution authorizing their issuance and in an indenture or other appropriate proceedings.

(d)

Any bonds issued under this section shall:

(iii)

Mature at such time or serially at such times in regular numerical order at annual or other designated intervals in amounts designated and fixed by the
board

commission
, but not exceeding thirty (30) years from their date;

(vi)

Be printed at a place the
board

commission
determines;

(vii)

Be additionally secured by a reserve fund created from revenues received under W.S. 9
‑
4
‑
601(a)(vi) and (b)(i) or from the proceeds of the bonds, or both, in an amount determined by the
state loan and investment board

commission
but not to exceed an amount equal to ten percent (10%) of the revenue bonds outstanding.

(e)

Before any contract is entered into by the
state loan and investment board

commission
to retain the services of a financial advisor or to sell the bonds to an underwriter, whether by competitive or negotiated bid, a full disclosure of the terms of the contract including fees to be paid shall be submitted to the management council through the legislative service office.

(f)

Proceeds of state revenue bonds shall be credited to a separate account and may be loaned or granted to local governmental entities as hereafter provided. In determining which local governmental entities receive loans or grants, the
state loan and investment board

commission
shall give priority to projects in those subdivisions of the state socially or economically impacted directly or indirectly by the development of minerals leased under 30 U.S.C. § 181 et seq. Pending distribution the state treasurer shall invest bond proceeds in a manner which complies with all requirements of the internal revenue service to insure the bonds will remain tax free investments.

(g)

Not to exceed forty million dollars ($40,000,000.00) of the total proceeds of all bonds issued under subsection (b) of this section may be loaned or granted to incorporated cities and towns. Loans or grants shall be made only under the following conditions:

(i)

Loans may be made for municipal purposes with or without interest. If the
state loan and investment board

commission
deems it necessary to secure the loan, no security other than pledges of specified revenue to repay a loan shall be required. Before a loan application is approved the
board

commission
shall determine by proper investigation that:

(ii)

Grants may be made for municipal purposes either standing alone or in conjunction with a loan under paragraph (i) of this subsection. Grants may be applied for by a joint powers board with the approval of the city or town which is a member of the board or by one (1) or more cities or towns and shall not be pledged to be payable over a term of years but shall be distributed within a reasonable time following approval. Grants shall be used to finance not more than fifty percent (50%) of the cost of any portion of a project which is unable to be financed under paragraph (i) of this subsection and projects for street, curb, gutter or storm drainage improvements provided the
state loan and investment board

commission
may make grants in excess of fifty percent (50%) if the
board

commission
determines that the applicant or the member cities or towns if the applicant is a joint powers board, either levied at least seven (7) mills for operating expenses including special district levies chargeable against the general city or town levy during the current fiscal year or is imposing the optional tax permitted by W.S. 39
‑
15
‑
204(a)(i) or (iii) at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project and:

(A)

If the project is for water facilities, that the city or town, either individually or as a member of a joint powers board, has installed or during the project will install, or require the installation of water meters if required by the
state loan and investment board

commission
, will require the owners of all new additions of land to the city or town to pay all costs of expanding the water system within and to the boundaries of the addition, is enforcing an appropriate water tap fee as determined by the
state loan and investment board

commission
and has or will adopt water rates which will be adequate to finance the operation and maintenance of the system;

(B)

If the project is for sewer facilities, that the city or town, either individually or as a member of a joint powers board, has or will require the owners of all new additions of land to the city or town to pay all costs of expanding the sewer system within and to the boundaries of the addition, is enforcing an appropriate sewer tap fee as determined by the
state loan and investment board

commission
and has or will adopt sewer rates which will be adequate to finance the operation and maintenance of the system;

(C)

The fifty percent (50%) limitation on grants does not apply to improvements to county or state highways within city or town boundaries unless otherwise required by the
state loan and investment board

commission
.

(h)

Not to exceed twenty million dollars ($20,000,000.00) of the total proceeds of all bonds issued under subsection (b) of this section may be loaned or granted to counties or special districts. As used in this subsection "special districts" means hospital districts, fire protection districts, sanitary and improvement districts, solid waste disposal districts, service and improvement districts and water and sewer districts. Notwithstanding any other provision of law, no special district, either standing alone or as a member of a joint powers board, shall receive any grant or loan under this section until the special district's grant or loan application has received a written review from the board of county commissioners in any county in which the special district is located. The board of county commissioners shall review: (1) the ability of the special district to fund the project through bonds, (2) whether the project is adverse to the needs, plans or general welfare of the county, (3) whether the special district has utilized local funding resources, and (4) whether the special district has met county standards. If any part of the special district lies within five (5) miles of the corporate limits of any city or town, the special district's grant or loan application shall also receive a written review from the governing body of the city or town. The written review shall be submitted to the
state loan and investment board

commission
by the special district with its grant or loan application. Loans or grants shall be made only under the following conditions:

(i)

Loans, with or without interest, may only be made for county or special district purposes which are permitted by law. If the
state loan and investment board

commission
deems it necessary to secure the loan, no security other than pledges of specified revenue to repay a loan shall be required. Before a loan application is approved the
board

commission
shall determine by proper investigation that:

(ii)

Grants may be made for county or special district purposes either standing alone or in conjunction with a loan under paragraph (i) of this subsection. Grants may be applied for by a joint powers board with the approval of the county or special district which is a member of the board or by one (1) or more counties or special districts and shall not be pledged by the
board

commission
to be payable over a term of years but shall be distributed within a reasonable time following approval. Grants shall be used to finance not more than fifty percent (50%) of the cost of any portion of a project which is unable to be financed under paragraph (i) of this subsection provided the
state loan and investment board

commission
may make grants in excess of fifty percent (50%) if the
board

commission
determines that the applicant either levied at least eleven (11) mills for operating expenses during the current fiscal year or is imposing the optional tax permitted by W.S. 39
‑
15
‑
204(a)(i) or (iii) at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project;

(j)

After any principal payment date for the bonds issued under subsection (b) of this section, the
board

commission
shall deposit all revenues received pursuant to W.S. 9
‑
4
‑
601(a)(vi) and (b)(i) which are not required to be otherwise deposited or expended pursuant to the resolution or resolutions authorizing the issuance of bonds in a separate account.

(k)

All revenues received under W.S. 9
‑
4
‑
601(a)(vi) and (b)(i) prior to the issuance of bonds under subsection (b) of this section and all revenues in excess of those required to be otherwise expended or retained pursuant to subsection (j) of this section or pursuant to the resolution or resolutions authorizing the issuance of bonds under subsection (b) of this section shall be used or distributed as follows:

(i)

Not more than seventy-five percent (75%) may be used by the
board

commission
to make grants and loans to cities and towns under subsection (g) of this section in the same manner as the proceeds of the bonds are to be used;

(ii)

Not more than twenty-five percent (25%) may be granted or loaned by the
state loan and investment board

commission
to special districts and counties in the state of Wyoming under subsection (h) of this section in the same manner as the proceeds of the bonds are to be used but no revenue shall be distributed to any county which did not levy at least eleven (11) mills for the operation of the county during the preceding fiscal year;

(iii)

Funds may be used by the
state loan and investment board

commission
to provide one-half (1/2) of the twenty percent (20%) state matching funds for each federal capitalization grant to the state drinking water revolving loan account created by W.S. 16
‑
1
‑
302.

(m)

The
board

commission
may issue refunding revenue bonds:

(n)

Any refunding permitted by subsection (m) of this section shall be accomplished in the manner prescribed by W.S. 16
‑
5
‑
101 through 16
‑
5
‑
119, except any refunding revenue bonds authorized by the
board

commission
under subsection (m) of this section shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation or be considered general obligations of the state. The
board

commission
shall not pledge the state's full faith and credit to the payment of any such refunding revenue bonds. The refunding revenue bonds shall constitute special obligations of the state and may be payable only from the sources authorized in this section for the payment of the bonds refunded. The principal amount of any bonds which have been refunded need not be taken into account in computing compliance with the maximum amounts of bonds authorized to be issued by subsection (b), (g) or (h) of this section.

(o)

Notwithstanding subsections (g) and (h) of this section, no money shall be loaned or granted by the
state loan and investment board

commission
under this section to any applicant for any water development purpose except for the drilling of new wells, emergency situations and except for a water treatment facility or a water distribution system whose primary purpose is to deliver water.

9
‑
4
‑
605.

Distribution and use; capital construction projects and bonds; purposes.

(b)

The
state loan and investment board

local government infrastructure and capital construction commission
may borrow money in a principal amount not to exceed one hundred five million dollars ($105,000,000.00) by the issuance from time to time of one (1) or more series of revenue bonds and may encumber revenues under subsection (a) of this section for bonds in total amounts not to exceed one hundred five million dollars ($105,000,000.00) issued for capital construction projects under subsection (f) of this section. Any bonds issued under this section, together with any interest accruing thereon and any prior redemption premiums due in connection therewith, are payable and collectible solely out of revenues authorized under subsection (a) of this section. The bondholders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute its special obligations and the
board

commission
shall not pledge the state's full faith and credit for payment of the bonds.

(c)

Except as otherwise provided bonds issued under this section shall be in a form, issued in a manner, at, above or below par at a discount not exceeding ten percent (10%) of the principal amount of the bonds, at public or private sale, and issued with recitals, terms, covenants, conditions and other provisions not contrary to other applicable statutes, as may be provided by the
board

commission
in a resolution authorizing their issuance and in an indenture or other appropriate proceeding.

(d)

Any bonds issued under this section:

(vi)

Shall be printed at a place the
board

commission
determines;

(vii)

May be additionally secured as determined by the
state loan and investment board

commission
.

(e)

The
state loan and investment board

commission
may retain the services of a financial advisor and sell the bonds to an underwriter, either by competitive or negotiated bid. The terms of any contract including fees to be paid shall be available for public review and inspection.

(g)

The
board

commission
may issue refunding revenue bonds:

(h)

Any refunding permitted by subsection (g) of this section shall be accomplished in the manner prescribed by W.S. 16
‑
5
‑
101 through 16
‑
5
‑
119, except any refunding revenue bonds authorized by the
board

commission
under this subsection shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation or be considered general obligations of the state. The
board

commission
shall not pledge the state's full faith and credit to the payment of the refunding revenue bonds. The refunding revenue bonds shall constitute special obligations of the state and may be payable only from sources authorized in this section for the payment of the bonds refunded. The principal amount of any bonds which have been refunded need not be taken into account in computing compliance with the maximum amounts of bonds authorized to be issued by subsection (b) of this section.

Section 3.

(a)

It is the intention and direction of the legislature that:

(i)

All duties of the state loan and investment board with respect to the federal mineral royalty grant program
under W.S. 9
‑
4
‑
604 and 9
‑
4
‑
605
be transferred to the local government infrastructure and capit
a
l construction commission. All duties of the state loan and investment board with respect to the federal mineral royalty grant program not assumed by the local government infrastructure and capit
a
l construction commission are terminated;

(ii)

All unexpended funds not otherwise obligated and any other property, if any, of the state loan and investment board exclusively dedicated to the federal mineral royalty grant program be transferred to the local government infrastructure and capit
a
l construction commission;

(iii)

Any contract, agreement or obligation entered into or assumed by the state loan and investment board with respect to the federal mineral royalty grant program, if the execution or assumption was within the lawful powers of the state loan and investment board, be assumed by the local government infrastructure and capit
a
l construction commission;

(iv)

Any policy adopted by the state loan and investment board with respect to the federal mineral royalty grant program remain in effect unaltered as policy of the local government infrastructure and capit
a
l construction commission until amended or repealed by the local government infrastructure and capit
a
l construction commission.

Section
3
.

Th
is act is effective July 1, 2008
.

(END)

1
HB0170