Wyoming agriculture authority.

21LSO-0348
2021
STATE OF WYOMING
21LSO-0348
ENGROSSED
3.0

SENATE FILE NO. SF0122

Wyoming agriculture authority.

Sponsored by: Senator(s) Boner, Kinskey, Steinmetz and Wasserburger and Representative(s) Clausen, Eklund and Hunt

A BILL

for

AN ACT relating to agriculture and livestock; establishing the Wyoming agriculture authority; specifying duties and powers of the authority; establishing a board for the authority; providing legislative findings; providing for financing of authority projects as specified; providing rulemaking authority; making a conforming amendment; providing an appropriation; and providing for an effective date.

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

Section 1
.

W.S. 11
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52
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101 through 11
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52
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207 are created to read:

CHAPTER 52
WYOMING AGRICULTURE AUTHORITY

ARTICLE 1
IN GENERAL

11
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52
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101.

Definitions.

(a)

As used in this article:

(i)

"Agricultural processing" means harvesting, preserving, drying, processing, canning, packing, storing, handling or shipping meat, crops or other agricultural products and includes meat processing, crop processing and other agricultural products processing;

(ii)

"Agricultural processing facility" means any facility where meat, crop or other agricultural product processing occurs;

(iii)

"Agricultural product processing project" means any project related to or involving agricultural processing and any project included within W.S. 11
‑
52
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104(a)(iv);

(iv)

"Authority" means the Wyoming agriculture authority;

(v)

"Board" means the board of the Wyoming
agriculture

authority;

(vi)

"Bonds" means notes, warrants, bonds, temporary bonds and anticipation notes issued by the authority under this chapter;

(vii)

"Producer" means
any person who produces agricultural commodities in the state or who operates an agricultural product processing facility that will process, sell or distribute Wyoming products
.

11
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52
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102.

Wyoming
agriculture
authority created; limitation on civil actions; report.

(a)

Except as otherwise provided, commencing July 1, 2022, there is created the Wyoming
agriculture
authority, which is a body politic and corporate operating as an
instrumentality of the state of Wyoming, with authority to adopt an official seal and to sue and be sued.

(b)

The authority shall be governed by a board composed of seven (7) voting members appointed by the governor, with the advice and consent of the senate. The board shall be appointed commencing on July 1, 2021 and shall adopt rules and carry out administrative functions in preparation for implementing other powers of the authority but shall not exercise those powers until July 1, 2022. Except as provided in this subsection, all voting members shall be appointed for four (4) year terms. The governor shall appoint four (4) initial voting board members to a term of four (4) years and shall appoint the remaining three (3) initial voting board members to a term of two (2) years. The governor may remove any member as provided in W.S. 9
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1
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202. Vacancies shall be filled by appointment by the governor in accordance with W.S. 28
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12
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101. The members shall elect from the membership a chairman, vice
‑
chairman and secretary. A majority of the persons appointed and serving as members shall be qualified voters of the state of Wyoming. Voting members of the board shall be engaged chiefly in the agricultural industry. As used in this
section "agricultural industry" means work relating to the science, art, business or finance of cultivating soil, producing crops or raising livestock or the support of such work. At least two (2) members shall be engaged chiefly in beef production, at least one (1) member shall be engaged chiefly in sheep production, at least two (2) members shall be engaged chiefly in crop production
, at least one (1) member shall be engaged chiefly in agricultural processing
and at least one (1) member shall be engaged primarily in financing agribusinesses. Members of the board may receive the same per diem and travel allowance as members of the legislature under W.S. 28
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5
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101 while in attendance at meetings of the board and while performing their duties as members of the board.

(c)

The following members shall serve as ex officio members of the board:

(i)

The governor or a designee from his office;

(ii)

The director of the department of agriculture or his designee;

(iii)

The dean of the University of Wyoming college of agriculture or his designee;

(iv)

The chief executive officer of the Wyoming business council or his designee.

(d)

The board shall meet not less than two (2) times each year to conduct its business and to consider issues related to agricultural commodities and the agriculture industry in Wyoming.

(e)

The authority may request the assistance of any agency, board, commission, department or institution of the state and the governing authorities of political subdivisions to make surveys, reports and investigations, furnish records, information and other assistance and advice upon mutually agreeable terms and conditions.

(f)

Appointments and terms under this section shall be as provided in W.S. 28
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12
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101 through 28
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12
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103.

(g)

The authority is subject to the requirements of:

(i)

W.S. 16
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3
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101 through 16
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3
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105;

(ii)

W.S. 16
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4
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201 through 16
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4
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205;

(iii)

W.S. 16
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4
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401 through 16
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4
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408.

(h)

The sole recourse of any party contracting with the authority shall be against the authority, and there shall be no cause of action against the state or any county, municipality or other political subdivision of the state.

(j)

The authority shall annually submit a comprehensive report of the programs, objectives, activities and condition covering the previous fiscal period to the joint agriculture, state and public lands and water resources interim committee.

11
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52
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103.

Purposes.

(a)

The authority is created to:

(i)

Diversify and expand the Wyoming economy and its agriculture industry;

(ii)

Coordinate strategies with the department of agriculture to improve agricultural processing facilities and capabilities, including:

(A)

Assisting processors seek federal grants and loans;

(B)

Increasing participation in applicable federal programs; and

(C)

In accordance with applicable federal program guidelines, implementing, administering and expanding federally funded programs for agricultural processing and agricultural processing facilities in Wyoming.

11
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52
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104.

Powers of the authority.

(a)

The authority may:

(i)

Employ officers, agents and employees as it deems necessary for the performance of its duties and prescribe the powers and duties and fix the compensation of the officers, agents and employees;

(ii)

Contract, upon terms as it may agree upon, for legal, financial, engineering and other professional services necessary or expedient in the conduct of its affairs;

(iii)

Utilize the services of executive agencies of the state upon mutually agreeable terms and conditions;

(iv)

Provide loans, grants, technical assistance or expertise to assist producers to plan, finance, construct, develop, acquire, own, lease, operate, maintain, modernize, upgrade or dispose of agricultural processing facilities and all other property, structures, equipment, utilities and works of public improvement necessary or useful to facilitate the processing of agricultural products in the state of Wyoming and the transportation, distribution and delivery of agricultural products that are
produced within this state including obtaining state and federal inspection status;

(v)

Provide technical assistance and expertise to assist producers with permitting, siting and other regulatory requirements;

(vi)

Receive by gift, grant, donation or otherwise, any sum of money, aid or assistance from the United States, the state of Wyoming, any political subdivision or any other public or private entity to the extent permitted by law;

(vii)

Provide technical assistance or expertise to assist producers to acquire light, water, communications, security and other services for facilities as the authority deems advisable;

(viii)

After consultation with any relevant state or federal authority, establish and collect fees, rates, tariffs or other charges and prepare a schedule of charges for all services rendered by the authority;

(ix)

Investigate, plan and establish priorities for processing facilities in Wyoming;

(x)

Engage with international and domestic stakeholders on potential market opportunities and agricultural processing projects to identify, develop and promote projects and market opportunities to increase the value of Wyoming agricultural products;

(xi)

Enter into partnerships with public or private entities;

(xii)

Conduct hearings and gather and develop relevant data consistent with the duties and powers of the authority;

(xiii)

Advocate for or against any agricultural processing project before any regulatory body tasked with the oversight of the project;

(xiv)

Develop and administer programs to educate producers and the public on agricultural processing and the
Wyoming agriculture industry including tours, academic programs and communication plans;

(xv)

Do any and all things necessary or proper for the development, regulation and accomplishment of the purposes of the authority within the limitations of authority granted by this chapter.

(b)

Any entity receiving assistance from the authority shall comply with all applicable state and federal regulations.

(c)

The authority may borrow funds for the execution of the purposes of the authority, and mortgage and pledge any contracts granted, assigned or subleased by the authority.

(d)

Except as provided in this section, the authority shall not exercise any of the rights or powers granted to it in this section if private persons, firms or corporations are performing the acts, constructing or have constructed the facilities or are providing the services
contemplated by the authority, except in accordance with subsection (e) of this section.

(e)

Before exercising any rights or powers granted to it in this section, the authority shall publish in a newspaper of general circulation in Wyoming, and in a newspaper in the area where the authority contemplates providing financing or services, in the manner prescribed by law, a notice describing the acts or services contemplated by the authority. Private persons, firms or corporations wishing to perform the acts, construct the facilities or provide the services described in the notice shall have ninety (90) days from the date of last publication of the notice within which to notify the authority of their intention to perform the acts or provide the services described in the notice. A person or entity giving notice to the authority shall include an anticipated timeline for completion of the acts or services. In the absence of notification by a private person, firm or corporation, or if a person, firm or corporation, having given notice of intention to perform the acts or provide the services contemplated by the authority, fails to commence the same within one hundred eighty (180) days from
the date of last publication, the authority may proceed to perform the acts, or provide the services for which notice was given. A private person, firm or corporation that has made necessary applications to acquire any federal, state, local or private permits, certificates or other authorizations necessary to perform the acts or provide the services included in the authority's notice within the time required is deemed to have commenced the same. When a private person, firm or corporation has given notice of intent to perform or is performing the acts or providing the services that the authority contemplated, the authority may conduct hearings or meetings with the person, firm or corporation to assess progress toward completion of the intended acts to be performed or the services to be provided. If it appears to the authority that progress or completion of any or all of the intended acts or services may be delayed for one (1) year or more, the authority may proceed to perform the acts or provide the services originally contemplated.

(f)

The authority shall promulgate rules to carry out the provisions of this chapter.

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52
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105.

Authority loan and grant program.

(a)

The authority shall establish and administer a loan and grant program under this chapter and may contract for necessary professional services. Loans and grants authorized under the program shall not exceed fifty million dollars ($50,000,000.00) per project. Any person may submit an application to the authority to participate in the program on forms prescribed by and subject to rules promulgated by the authority.

(b)

The authority shall establish all fees and interest rates to be charged for each loan as it is underwritten for this program. The interest rate for loans made under this program shall not be less than one percent (1%) per annum. Fees on loans under the program shall be paid monthly and deposited into a program administration account which is continuously appropriated to the authority to be expended solely for the purpose of administering this chapter and loans and grants authorized under it.

(c)

Grants may be awarded by the authority to provide funding to producers to create, maintain or expand
infrastructure for agricultural processing facilities that will increase capacity for agricultural processing in the state. The authority shall establish requirements for grants awarded under this subsection.

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52
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106.

Confidential information.

All information obtained by the authority in connection with any hearing or investigation under this article that contains or that might reveal proprietary data shall be considered as confidential for the purposes of this article. The authority shall not disclose confidential information to any person, governmental entity or agency without prior written consent from the owner of the confidential information. Any board or staff member who discloses or causes to be disclosed any confidential information is guilty of a misdemeanor punishable by imprisonment for not more than one (1) year, a fine of not more than one thousand dollars ($1,000.00), or both.

ARTICLE 2
PROJECT FINANCING ASSISTANCE

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52
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201.

Legislative findings; applicability.

(a)

The legislature finds that:

(i)

Beginning when Wyoming was only a territory, the livestock industry has been an integral part of Wyoming's economy and agricultural heritage;

(ii)

Because of market conditions, both in Wyoming and across the nation, producers are facing challenges getting livestock to agricultural processing facilities in a timely, efficient and cost effective manner;

(iii)

Timely development of agricultural processing facilities in Wyoming will help increase revenue to the state;

(iv)

New infrastructure for agricultural processing will increase development of Wyoming's livestock industry;

(v)

It is in the public interest of the citizens of this state to promote the economic welfare of the state and its residents by increasing employment, stimulating economic activity, augmenting sources of tax revenue, fostering economic stability, improving the balance of the state's economy and enhancing the food supply chain to ensure adequate quantities of wholesome foods are available;

(vi)

This chapter constitutes a valid public purpose of primary benefit to all citizens of this state.

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52
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202.

Authority revenue bonds; issuance; amount.

(a)

The authority may issue and have outstanding bonds to finance agricultural processing facilities and agricultural processing projects consistent with the purposes of W.S. 11
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52
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103(a), in an amount not to exceed two hundred fifty million dollars ($250,000,000.00). The authority shall have contracts sufficient to justify the issuance of bonds.

(b)

The principal amount of any bonds that have been retired, redeemed, defeased or refunded by the authority need not be taken into account in computing compliance with the maximum amounts of bonds authorized to be issued under subsection (a) of this section.

(c)

Subject to subsection (a) of this section, the authority may issue bonds in principal amounts the authority determines necessary to provide sufficient funds for achieving its purposes under this article, including the reduction of principal, the payment of interest, the establishment of reserves, the costs of administration and for the purpose of defraying all other associated costs. All bonds issued under this article are negotiable instruments under the laws of this state unless expressly provided to the contrary on the face of the bonds. The authority may enter into contracts to insure the payment of principal and interest, for interest rate exchange contracts and for financial guarantees to lower the cost of its borrowing.

(d)

All bonds issued by the authority are payable solely out of special funds consisting of all or part of
its revenues, receipts, monies and assets, as designated in the proceedings under which the bonds are authorized. All bonds shall bear interest at fixed or variable rates, be executed and delivered at times and in denominations, be of terms and maturities, be in registered form as to principal and interest or principal alone and bear manual or facsimile signatures and seals as the authority determines. Bonds issued by the authority are not general obligations of this state nor of any political subdivision of this state. The bonds shall solely be the obligation of the authority and shall recite on their face that they do not constitute obligations of the state or any political subdivision of the state.

(e)

Bonds may be payable in installments and may bear maturities not exceeding forty (40) years from the date issued as the authority determines. Bonds may contain other provisions not inconsistent with this article.

(f)

Any bonds that the authority issues may contain an option to redeem all or any part as may be specified. The price of redemption, the terms and conditions and the
procedure of notice shall be set forth by the authority and may appear on the face of the bonds.

(g)

Any bonds of the authority may be sold at, above or below par value, at public or private sale, in a manner and from time to time as determined by the authority. The authority may pay legal fees, expenses, premiums and commissions that it finds necessary or advantageous to this state in connection with the issuance and sale.

(h)

The authority may provide for the issuance of bonds to refund any bonds of the authority then outstanding, including for the payment of any redemption premium and any interest or premium accrued or to accrue to, the earliest or subsequent date of redemption, purchase or maturity of the bonds. Refunding shall be accomplished in the manner prescribed by W.S. 16
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5
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101 through 16
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5
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119 to the extent it is not inconsistent with this article.

11
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52
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203.

Authority revenue bonds; security; payments after retirement.

(a)

The principal and interest on any bonds that the authority issues shall be secured by a pledge of revenues from the operation of the agricultural processing facility or agricultural processing project financed, by a first mortgage on the facilities, by guarantees and pledges of the entity owning the project or facility, or of the parent corporation owning said entity or by any combination thereof or other security as the authority may determine to be reasonable and prudent. The guarantees and pledges shall be no less favorable to the authority than those granted other lenders of the same class.

(b)

The authority may require additional payments, as negotiated, to bondholders to be made either in a lump sum at the time of retirement of the bonds or annually from the time of retirement of the bonds until use of the agricultural processing facility or agricultural processing project is terminated or may require additional incentives from the owner of the project or facility to prospective bondholders so long as the incentives are not contrary to the Wyoming constitution.

(c)

The authority may require such other security for repayment of the bonds as it deems necessary.

(d)

Each pledge, agreement, mortgage or other instrument made for the benefit or security of any bonds of the authority is valid and binding from the time when made. The revenues, receipts, monies and assets pledged are immediately subject to the lien of the pledge without delivery or further act. The lien is valid and binding against persons having claims of any kind against the authority whether or not the persons have actual notice of the lien. The resolution or the indenture or other instrument by which a pledge is created need not be recorded or filed.

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52
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204.

Exemptions from taxation.

The exercise of the powers granted by this article constitutes the performance of an essential governmental function. Any bonds issued under this article and the income therefrom shall be free from taxation of every kind by the state, municipalities and political subdivisions of the state.

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52
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205.

Bonds as legal investments.

The bonds of the authority are legal investments that may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, investment companies, trustees and other fiduciaries that may properly and legally invest funds in their control or belonging to them in bonds of the authority. With the written approval of the state loan and investment board and the attorney general, the state treasurer may invest monies from the permanent Wyoming mineral trust fund in bonds of the authority in an amount specified by the state loan and investment board and the attorney general but not to exceed the amount specified in W.S. 11
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52
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202(a). The interest payable on the bonds shall be not less than two percent (2%), and revenue under W.S. 11
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52
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202(a) shall be credited as received to the general fund. The limitation on specific public purpose investments under W.S. 9
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4
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715(n) shall not apply to investments made under this section.

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52
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206.

State pledge not to impair bondholder's rights and remedies.

The state pledges to the holders of any bonds issued under this article that the state will not limit or alter the rights vested in the authority to fulfill the terms of agreements made with the holders, or in any way impair the rights and remedies of the holders until the bonds together with the interest, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the holders are fully met and discharged. The authority is authorized to include this pledge of the state in any agreement with the holders of the bonds.

11
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52
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207.

Powers; duties; limitations.

(a)

The authority has the powers granted by W.S. 11
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52
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101 through 11
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52
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106 as necessary to carry out the purposes of this article, including the power to hire technical consultants, financial advisors and legal advisors and specifically the powers granted by W.S. 11
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52
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104(a)(ii). In addition to the powers otherwise granted to the authority, the authority shall have the power to:

(i)

Enter into loans or other agreements with respect to one (1) or more agricultural processing projects or projects for agricultural processing facilities, upon terms and conditions the authority considers advisable;

(ii)

Make and execute agreements, contracts and other instruments necessary or convenient in the exercise of its powers and functions, including contracts with any individual, firm, corporation, governmental agency or other entity.

(b)

The authority may assess and collect fees that are nonrefundable from applicants seeking to obtain authority financing of an agricultural processing facility or agricultural processing project in total amounts not to exceed five hundred thousand dollars ($500,000.00), which shall be credited to the authority.

(c)

The authority shall maintain such records and accounts of revenues and expenditures as required by the director of the state department of audit. The director of the state department of audit or his designee shall conduct
an annual financial and legal compliance audit of the accounts of the authority and file copies of the audit with the governor and the legislature.

(d)

The authority shall require that any project owner receiving a loan under this chapter shall maintain records and accounts relating to the receipt and disbursements of loan proceeds, costs associated with the agricultural processing facility or agricultural processing project and sales and deliveries associated therewith and make the records available to the state auditor for inspection.

(e)

The sole recourse of any party contracting with the authority shall be against the authority, and there shall be no cause of action against the state, or any county, municipality or other political subdivision of the state.

Section 2.

W.S. 9
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4
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715(n)(intro) is amended to read:

9
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4
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715.

Permissible investments.

(n)

The state treasurer shall not invest state funds for a specific public purpose authorized or directed by the legislature in excess of a total of one billion dollars ($1,000,000,000.00), excluding investments made pursuant to W.S.
11
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52
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205,
37
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5
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406 or 37
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5
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605.

By November 1 of each calendar year, the state treasurer, in consultation with the board, the Wyoming water development office, the Wyoming business council and the office of state lands and investments, shall provide a report to the select committee on capital financing and investments and the investment funds committee on all state funds invested for a specific public purpose authorized or directed by the legislature.

The report shall include:

Section 3.

The board of the Wyoming agricultural authority shall be appointed and shall meet not fewer than two (2) times between July 1, 2021 and July 1, 2022. The board shall take all actions necessary to implement the powers of the authority from July 1, 2021 to July 1, 2022. The Wyoming department of agriculture shall provide administrative support for the board.

Section 4.

There is appropriated twenty thousand dollars ($20,000.00) from the general fund to the Wyoming department of agriculture for administrative expenses incurred by the authority in implementing this act. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022.

This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2022.

Section 5.

This act is effective July 1, 2021
.

(END)

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SF0122