Industrial Siting Act-amendments.

WORKING DRAFT
2009
STATE OF
WYOMING
09LSO-0438

HOUSE BILL
NO.
HB0196

Industrial Siting Act-amendments.

Sponsored by:
Representative(s) Meyer, Craft and Hallinan and Senator(s) Cooper, Geis, Hastert and Vasey

A BILL

for

AN ACT relating to industrial development and siting; providing for industrial siting impact assistance payments for oil and gas impacts on local governments as specified; providing procedures; amending related provisions; and providing for an effective date.

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

Section 1.

W.S. 35
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12
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120 is created to read:

35
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12
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120.

Oil and gas impact assistance.

(a)

Any city or town adequately demonstrating impact costs of not less than two hundred fifty thousand dollars ($250,000.00) as approved by the industrial siting council which costs are in excess of its annual budget due to oil or gas related production activities within its county may file an application for assistance as provided in this section. If approved by the council following a hearing as provided by this section, the city or town may be eligible for impact assistance payments as provided by W.S. 39
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15
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111(c) and 39
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16
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111(d).

(b)

The petition shall be filed with the council in a form and manner as required by rule and regulation of the council. The petition shall identify the cause for the impact, the probable impacted area, the nature of the impact and any recommended remedy. The petition shall include any of the social, economic or environmental impacts as provided by W.S. 35
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12
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109(a)(xiii). Not later than thirty (30) days from receipt of the petition, the administrator shall review the petition and make a preliminary determination whether the petition meets the requirements of the rules and regulations of the council. The administrator may seek information and recommendations from the agencies listed in W.S. 35
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12
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110(b), and any information shall be provided as required by W.S. 35
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12
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110(c).

(c)

Not later than sixty (60) days following receipt of an eligible petition, the council shall hold a hearing on the petition. At the hearing, the administrator may present an opinion, analysis and any recommendation on the petition if requested by the council. Not later than ten (10) days following conclusion of the hearing, the council shall make a final determination. The final determination shall be in writing and shall include any amount of impact assistance payments awarded under W.S. 39
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15
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111(c) or 39
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111(d). In the event impact assistance payments are awarded by the council, the payments shall be paid from the general fund from sales and use taxes collected and computed and distributed as provided by W.S. 39
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15
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111(c) and 39
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111(d). In no event shall any payments awarded exceed thirty-six (36) months in duration. No city or town currently receiving impact assistance payments shall be eligible for any payment under this section. The council may require periodic reports or information from any city or town receiving impact assistance payments under this section.

Section 2.

W.S. 35
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12
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119(c)
(intro)
, 39
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15
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111(c) and (d)(ii) and 39
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16
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111(d) and (e)(ii) are amended to read:

35
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12
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119.

Exemptions; information required.

(c)

Except as provided by W.S. 35
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12
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120,
t
he construction, operation and maintenance of the following activities are exempt from this chapter:

39
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15
‑
111.

Distribution.

(c)

The following shall apply to distribution of impact assistance payments:

(i)

If any person commences after the effective date of this act to construct an industrial facility, as that term is defined in W.S. 35
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12
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102, under a permit issued pursuant to W.S. 35
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12
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106, or if the federal or state government commences to construct any project within this state with an estimated construction cost as specified in the definition of industrial facility in W.S. 35
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12
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102 the state treasurer shall thereafter pay to the county treasurer and the county treasurer will distribute to the county, cities and towns of that county in which the industrial facility or project is located, impact assistance payments from the monies available under paragraph (b)(i) of this section. Each payment to the county treasurer shall be equal to the excess of each monthly payment made under paragraph (b)(iii) of this section during the period of construction over the base period amount and shall continue during the period of construction except that in the case of an industrial facility or a federal or state government project which is expected to continue in phases for an indefinite period of time, the state treasurer shall discontinue payments under this section and establish a new base period when construction of any phase has ceased or been substantially completed for twelve (12) consecutive months. The impact assistance payments shall be distributed to the county treasurer and the county treasurer will distribute to the county and to the cities and towns therein based on a ratio established by the industrial siting council during a public hearing held in accordance with W.S. 35
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110. The industrial siting council shall review the distribution ratio for construction projects on a regular basis and make appropriate adjustments. A governing body which is primarily affected by the facility, or any person issued a permit pursuant to W.S. 35
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106, may petition the industrial siting council for review and adjustment of the distribution ratio upon a showing of good cause. The impact assistance payment shall be in addition to all other distributions under this section, but no impact assistance payment shall be made for any period in which the county or counties are not imposing at least a one percent (1%) tax authorized by W.S. 39
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15
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204(a)(i) and 39
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204(a)(i) or at least a total of a two percent (2%) sales tax authorized under W.S. 39
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204(a)(i), (iii) and (vi) and at least a total of a two percent (2%) use tax authorized under W.S. 39
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204(a)(i), (ii) and (v). For purposes of this subsection, the industrial facility or federal or state government project will be deemed to be located in the county in which a majority of the construction costs will be expended, provided that upon a request from the county commissioners of any adjoining county to the industrial siting council, the council may determine that the social and economic impacts from construction of the industrial facility or federal or state government project upon the adjoining county are significant and establish the ratio of impacts between the counties and certify that ratio to the state treasurer who will thereafter distribute the impact assistance payment to the counties pursuant to that ratio
;
.

(ii)

If any city or town is awarded impact assistance under W.S. 35
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12
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120, the state treasurer shall pay to the county treasurer and the county treasurer shall distribute to the designated city or town of that county impact assistance payments from the monies available under paragraph (b)(i) of this section. Each payment to the county shall be equal to the excess of each monthly payment made under paragraph (b)(iii) of this section over the base period amount for a period not to exceed thirty-six (36) months or until the amount of impact assistance awarded in W.S. 35
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12
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120 has been reached, whichever occurs first. If the amount of impact assistance has not been reached in thirty-six (36) months the city or town may submit a request to the industrial siting council for further impact assistance under W.S. 35
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12
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120.

(d)

As used in subsection (c) of this section:

(ii)

"Base period amount" is the average monthly distribution under paragraph (b)(iii) of this section for the twelve (12) month period immediately prior to the commencement of construction

under paragraph (c)(i) of this section or the
commencement of the new oil and gas activity identified
under W.S. 35
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12
‑
120, whichever is applicable
, provided that on each anniversary date of commencement of construction
or commencement of the new oil and gas activity identified
under W.S. 35
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12
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120

the state treasurer shall establish a new base period amount by multiplying the base period amount by a factor representing the annual rate of inflation in this state for the preceding twelve (12) month period as calculated by the department of administration and information.

39
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16
‑
111.

Distribution.

(d)

The following shall apply to distribution of impact assistance payments:

(i)

If any person commences after the effective date of this act to construct an industrial facility, as that term is defined in W.S. 35
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12
‑
102, under a permit issued pursuant to W.S. 35
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12
‑
106, or if the federal or state government commences to construct any project within this state with an estimated construction cost as specified in the definition of industrial facility in W.S. 35
‑
12
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102 the state treasurer shall thereafter pay to the county treasurer and the county treasurer will distribute to the county, cities and towns of that county in which the industrial facility or project is located, impact assistance payments from the monies available under paragraph (b)(i) of this section. Each payment to the county treasurer shall be equal to the excess of each monthly payment made under paragraph (b)(iii) of this section during the period of construction over the base period amount and shall continue during the period of construction except that in the case of an industrial facility or a federal or state government project which is expected to continue in phases for an indefinite period of time, the state treasurer shall discontinue payments under this section and establish a new base period when construction of any phase has ceased or been substantially completed for twelve (12) consecutive months. The impact assistance payments shall be distributed to the county treasurer and the county treasurer will distribute to the county and to the cities and towns therein based on a ratio established by the industrial siting council during a public hearing held in accordance with W.S. 35
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12
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110. The impact assistance payment shall be in addition to all other distributions under this section, but no impact assistance payment shall be made for any period in which the county or counties are not imposing at least a one percent (1%) tax authorized by W.S. 39
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15
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204(a)(i) and 39
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204(a)(i) or at least a total of a two percent (2%) sales tax authorized under W.S. 39
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15
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204(a)(i), (iii) and (vi) and at least a total of a two percent (2%) use tax authorized under W.S. 39
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16
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204(a)(i), (ii) and (v). For purposes of this subsection, the industrial facility or federal or state government project will be deemed to be located in the county in which a majority of the construction costs will be expended, provided that upon a request from the county commissioners of an adjoining county to the industrial siting council, the council may determine that the social and economic impacts from construction of the industrial facility or federal or state government project upon the adjoining county are significant and establish the ratio of impacts between the counties and certify that ratio to the state treasurer who will thereafter distribute the impact assistance payment to the counties pursuant to that ratio
;
.

(ii)

If any city or town is awarded impact assistance under W.S. 35
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12
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120, the state treasurer shall pay to the county treasurer and the county treasurer shall distribute to the designated city or town of that county impact assistance payments from the monies available under paragraph (b)(i) of this section. Each payment to the county shall be equal to the excess of each monthly payment made under paragraph (b)(iii) of this section over the base period amount for a period not to exceed thirty-six (36) months or until the amount of impact assistance awarded in W.S. 35
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12
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120 has been reached, whichever occurs first. If the amount of impact assistance has not been reached in thirty-six (36) months the city or town may submit a request to the industrial siting council for further impact assistance under W.S. 35
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12
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120.

(e)

As used in subsection (d) of this section:

(ii)

"Base period amount" is the average monthly distribution under paragraph (b)(iii) of this section for the twelve (12) month period immediately prior to the commencement of construction

under paragraph (d)(i) of this section or the commencement of the new oil and gas activity identified under W.S. 35
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12
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120, whichever is applicable
, provided that on each anniversary date of commencement of construction
or commencement of the new oil and gas activity identified under W.S. 35
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12
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120

the state treasurer shall establish a new base period amount by multiplying the base period amount by a factor representing the annual rate of inflation in this state for the preceding twelve (12) month period as calculated by the department of administration and information.

Section 2.

This act is effective July 1, 2009.

(END)

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HB0196