Large project account modifications.

ORIGINAL
Senate
ENGROSSED
File No
.
SF0015

ENROLLED ACT NO. 50,

SENATE

SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2018 Budget Session

AN ACT relating to economic development; providing standards for the state treasurer to set interest rates for specified loans and terms of loan participations made from the large project account; authorizing the state treasurer to require a loan guarantee from the principal of a borrower; authorizing the state treasurer to retain service providers for large project account loans; requiring a borrower to pay specified costs relating to retained experts and service providers; clarifying language relating to the economic analysis requirement for certain economic development projects; and providing for an effective date.

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

Section
1
.

2014 Wyoming Session Laws, Chapter
46, Section 2(e)
(intro), (
ii)
, (vii)
and (vi
i
i) is
amended to read:

Section 2.

(e)

The state treasurer shall establish the terms of any loan
,

loan participation

or

loan guarantee

issued under this section in accordance with the following:

(ii)

The treasurer shall adopt interest rates to be charged for
L
oans under this section
as
shall bear interes
t at a fixed or adjustable rate.

The interest rate shall be:

(A)

Indexed to a rate not less than
the
rate of the
United States treasury note
or bond
that
most closel
y m
atches the
remaining
term of the loan
, plus any additional premium determined by the treasurer to be reasonably
commensurate with the risk profile of the loan
;
and

(B
)

A
pproved by the state loan and investment board
pursuant to this
act and following consideration by the Wyoming business council
;

(vii)

When appropriate, the state treasurer may require continuing loan guarantees by affiliates

and principals
of the borrower;

(viii)

Except as provided in this paragraph, the state treasurer shall
secure

assure that the lead lender secures
a first security interest in the entire project sufficient to adequately protect the investment of loan proceeds or proceeds guaranteed by the state under this section.
The security interest shall be shared pro rata with the state in percentage of the loan or loan guarantee.
If necessary, the state treasurer may
allow the lead lender
to
accept substitute security which will protect repayment to the state on a basis substantially equivalent to a first security interest on the project. The state treasurer shall insure that any alternate security is sufficient to prudently protect the state's
pro rata
interest
;

in the entire project and any alternate security places the state before any other lender i
n priority of payment on the entire project in the event of default;
and

Section
2
.

2014 Wyoming Session Laws, Chapter 46, Section 2(e)
(intro),
(ix) and (h)
,
as amended by 2016
Wyoming Session Laws, Chapter 41, Section 3
,
is amended to read:

Section 2.

(e)

The state treasurer shall establish the terms of any loan
, loan participation
or loan guarantee issued under this section in accordance with the following:

(ix)

The state treasurer shall charge a loan origination fee or loan guarantee fee of one percent (1
.0
%) of the total loan or guaranteed loan amount. Funds collected under this paragraph shall be deposited in the large project account within the revolving investment fund
or
used to pay the costs of experts and service providers retained by the state treasurer pursuant to subsection (h) of this section
.

(h)

The state treasurer is authorized to
employ
retain

such experts
and service
providers
as necessary to fully evaluate
,

and
negotiate
and implement
the terms and conditions of the loan and loan guarantees.

The cost of any expert employed
If
an expert

or service provider

is
retained by the state treasurer

under
this subsection
,
any
cost
s

incurred
which exceed the loan origination fee or loan guarantee fee
shall be paid by the applicant.

Section
3
.

2017 Wyoming Session Laws, Chapter 150, Section 2, is amended to read:

Section
2
.

In conducting a fiduciary
analysis on an economic development project
considered for funding

under
section 1 of this act

from the large project account

from funds transferred pursuant to W.S. 9
‑
12
‑
305
, the state treasurer shall perform an economic and fiscal analysis regarding consequential state and local impacts. The analysis shall identify any induced revenues and induced costs associated with a project under consideration for each year for the ten (10) years following completion of the project. A local cost analysis shall consider impacts on public education, public safety, fire protection, public utilities and the courts and shall determine whether projects contribute more in tax revenue than they cost in public funds. Any analysis required by this section shall be conducted by an entity qualified to provide the analysis using nationally accepted econometric modeling techniques. Any analysis required by this section shall be paid for using funds
appropriated by this act.

Section 4
.

This act is effective July 1, 201
8
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the
Senate
.

Chief Clerk

1