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HB0047 • 2022

Local impact assistance payments.

AN ACT relating to impact assistance payments; amending requirements related to impact assistance payments; providing definitions; requiring reporting; specifying applicability; and providing for an effective date.

Healthcare Land Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Minerals
Last action
2022-03-09
Official status
enrolled
Effective date
7/1/2022

Plain English Breakdown

The official summary does not specify that the council must consider population and disproportionate impacts in distribution, only that it may do so.

Local Impact Assistance Payments

This act changes how local communities receive payments from sales and use taxes when large industrial facilities are built nearby, adjusting the maximum payment percentage based on project costs.

What This Bill Does

  • Changes the maximum impact assistance payment to between 1.50% and 2.25%, depending on the total estimated material costs of the facility.
  • Allows for a higher payment rate up to 2.76% if the Industrial Siting Council finds it necessary for projects under $350 million, with reporting requirements.
  • Requires local governments receiving impact assistance payments to report annually on how these funds were used.

Who It Names or Affects

  • Counties, cities, and towns that receive impact assistance payments from sales and use taxes.
  • The Industrial Siting Council which determines the amount of impact assistance payments.
  • Companies or entities constructing industrial facilities in Wyoming.

Terms To Know

Industrial Facility
A large-scale construction project that can have significant impacts on local communities, such as factories or power plants.
Unmitigated Impacts
Expenses incurred by a city, county, or town due to the construction of an industrial facility that are not covered by other entities and include medical services, fire and law enforcement services, roads, and public utilities.

Limits and Unknowns

  • The act applies only to permit applications submitted on or after July 1, 2022.
  • It does not specify how the Industrial Siting Council will determine if a higher payment rate is necessary for projects under $350 million.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0047H3001

3rd reading • Representative Stith

Failed

Plain English: The amendment changes the percentage for impact assistance payments from one and a half percent to one and seventy-five hundredths percent.

  • Changes 'one and one-half percent' to 'one and seventy-five hundredths percent (1.75%)' in two places on page 4 of the bill.
  • Makes the same change, replacing 'one and one-half percent' with 'one and seventy-five hundredths percent (1.75%)', on page 10.
  • The amendment only specifies changes to percentages and does not provide additional context or details about how these changes will affect the overall bill's implementation.
HB0047HS001

Standing Committee • House Minerals, Business and Economic Development

Corrected, Adopted

Plain English: The amendment changes the term 'applicant' to 'affected county, city or town' in two places within the bill.

  • Changes 'applicant' to 'affected county, city or town' on page 3, line 13 of the bill.
  • Changes 'applicant' to 'affected county, city or town' on page 10, line 2 of the bill.
  • The amendment does not provide further details about what constitutes an 'affected county, city or town'.
HB0047SS001

Standing Committee • Senate Minerals, Business and Economic Development

Adopted

Plain English: The amendment changes the percentage used in calculating impact assistance payments from two and fifty-five hundredths percent (2.55%) to two and seventy-six hundredths percent (2.76%).

  • Changes 'two and fifty-five hundredths' to 'two and seventy-six hundredths' where it appears.
  • Replaces 'percent (2.55%)' with 'two and seventy-six hundredths percent (2.76%)'.

Bill History

  1. 2022-03-09 LSO

    Assigned Chapter Number 29

  2. 2022-03-09 Governor

    Governor Signed HEA No. 0024

  3. 2022-03-07 Senate

    S President Signed HEA No. 0024

  4. 2022-03-07 House

    H Speaker Signed HEA No. 0024

  5. 2022-03-07 LSO

    Assigned Number HEA No. 0024

  6. 2022-03-07 House

    H Concur:Passed 51-8-1-0-0

  7. 2022-03-04 House

    H Received for Concurrence

  8. 2022-03-04 Senate

    S 3rd Reading:Passed 30-0-0-0-0

  9. 2022-03-03 Senate

    S 2nd Reading:Passed

  10. 2022-03-02 Senate

    S COW:Passed

  11. 2022-03-01 Senate

    S Placed on General File

  12. 2022-03-01 Senate

    S09 - Minerals:Recommend Amend and Do Pass 5-0-0-0-0

  13. 2022-02-24 Senate

    S Introduced and Referred to S09 - Minerals

  14. 2022-02-24 Senate

    S Received for Introduction

  15. 2022-02-24 House

    H 3rd Reading:Passed 39-20-1-0-0

  16. 2022-02-23 House

    H 2nd Reading:Passed

  17. 2022-02-22 House

    H COW:Passed

  18. 2022-02-17 House

    H Placed on General File

  19. 2022-02-17 House

    H09 - Minerals:Recommend Amend and Do Pass 8-1-0-0-0

  20. 2022-02-15 House

    H Introduced and Referred to H09 - Minerals 53-7-0-0-0

  21. 2022-02-11 House

    H Received for Introduction

  22. 2022-01-28 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 22LSO-0084
Bill No.:

HB0047

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0084

Enrolled Act No.:

HEA No. 0024

Chapter No.:

29

Prime Sponsor:

Joint Minerals, Business & Economic Development Interim Committee

Catch Title:

Local impact assistance payments.

Subject:

Amending amounts and requirements for local impact assistance payments.

Summary/Major Elements:

Current law provides impact assistance payments, payable from sales and use taxes to counties, cities, and towns to address the unmitigated impacts of industrial facilities that are constructed within their boundaries. Impact assistance payments, which are determined by the Industrial Siting Council, are currently limited to 2.76% of the total estimated material costs of the facility.

This act amends the maximum amount of the impact assistance payment to between 1.50% and 2.25%, depending on the total estimated material costs. The higher percentage is available for projects with lower total estimated materials costs. For facilities with costs less than $350 million, the Industrial Siting Council may increase the maximum percentage to 2.76% if the Council finds that the maximum allowable percentage is insufficient to address the unmitigated impacts. For this increase, the Council must report to the Joint Minerals, Business, and Economic Development Interim Committee on the increase.

The act provides that, in determining the distribution ratio of the payment among communities, the Industrial Siting Council may consider the extent and location of the unmitigated impacts, the populations of the local entities, and disproportionate impacts on smaller communities.

The act requires each county, city, and town that receives local impact assistance payments to provide an annual report to the Industrial Siting Council on how the payments were expended.

The act defines "unmitigated impacts" for purposes of the impact assistance payments to mean impacts incurred by a city, county, or town that are attributable to the industrial facility's construction, that are not otherwise mitigated by any other entity, that are for medical services, fire and law-enforcement services, roads, and public utilities. Unmitigated impacts do not include expenses for which the county, city, or town previously received an impact assistance payment, unless the expense is shown to be ongoing.

The act applies to industrial facility permit applications submitted on and after July 1, 2022.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
22LSO-0084

ORIGINAL House

ENGROSSED
Bill No
.
HB0047

ENROLLED ACT NO. 24,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to impact assistance payments; amending requirements related to impact assistance payments; providing definitions; requiring reporting; specifying applicability; and providing for an effective date.

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

Section 1
.

W.S. 39
‑
15
‑
111(c) and (d) by creating a new paragraph (iii) and 39
‑
16
‑
111(d) and (e) by creating a new paragraph (iii) are amended to read:

39
‑
15
‑
111.

Distribution.

(c)

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
‑
12
‑
102, under a permit issued pursuant to W.S. 35
‑
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
‑
102 the department of revenue 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 an amount determined by the industrial siting council under this subsection 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 department of revenue shall discontinue payments under this section when construction of any phase has ceased or been substantially completed for twelve (12) consecutive months. The person
constructing the industrial facility and the counties affected by the construction of the industrial facility shall provide evidence at the public hearing held pursuant to W.S. 35
‑
12
‑
110(f)(i) of the mitigated and unmitigated impacts that the construction will have on the counties, cities and towns determined by the industrial siting council to be affected by the construction of the industrial facility. The industrial siting council shall review the evidence of the impacts and determine, applying a preponderance of evidence standard, the dollar amount of the unmitigated impacts. The council shall state, in the order issued under W.S. 35
‑
12
‑
113(a), the total dollar amount of the impact assistance payment and
the reasons for determining that
include specific findings of fact detailing the basis for the total dollar
amount
determination and if requested by the affected county, city or town, its justification for rejecting, in whole or in part, an application for an impact assistance payment
. The impact assistance payment shall be distributed by the department of revenue in an amount and on a schedule determined by the council, based on evidence presented at the hearing. Under no circumstances shall the
total dollar amount of the
impact assistance payment exceed
two and seventy
‑
six hundredths percent (2.76%)
the maximum allowable percentage specified in this subsection
of the total estimated material costs of the facility, as those costs are determined by the council.
The maximum allowable percentage shall be two and twenty
‑
five hundredths percent (2.25%) for facilities with total estimated materials costs of three hundred fifty million dollars ($350,000,000.00) or less except as otherwise provided in this subsection, two percent (2%) for facilities with total estimated materials costs in excess of three hundred fifty million dollars ($350,000,000.00) but less than eight hundred fifty million dollars ($850,000,000.00) and one and one
‑
half percent
(1.50%) for facilities with total estimated materials costs of eight hundred fifty million dollars ($850,000,000.00) or more. For facilities with total estimated materials costs of three hundred fifty million dollars ($350,000,000.00) or less, the council may increase the maximum allowable percentage to not more than two and seventy
‑
six hundredths percent (2.76%) if the council includes in the specific findings required under this subsection that the maximum allowable percentage of two and twenty
‑
five hundredths percent (2.25%) is insufficient to mitigate the identified impacts. The council shall submit a report to the joint appropriations committee and the joint minerals, business and economic development interim committee not later than ten (10) business days after increasing the maximum allowable percentage as specified in this subsection, including data to support the increase.
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
‑
12
‑
110(f)(i).
In determining the distribution ratio, the industrial siting council may consider the extent and location of the unmitigated impacts, the populations of the affected counties, cities and towns, including any disproportionate impacts on smaller communities, and any other equitable factor.

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
‑
12
‑
106, may petition the industrial siting council for review and adjustment of the distribution ratio or the amount of the impact assistance payment 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
‑
15
‑
204(a)(i) and 39
‑
16
‑
204(a)(i) or at least a total of a two percent (2%) sales tax authorized under W.S. 39
‑
15
‑
204(a)(i), (iii) and (vi) and at least a total of a two percent (2%) use tax authorized under W.S. 39
‑
16
‑
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 department of revenue who will thereafter distribute the impact assistance payment to the counties pursuant to that ratio.
Each county, city and town that receives a distribution under this subsection shall provide an annual report to the industrial siting council describing how the impact assistance payment was expended. The report shall first be submitted not later than one (1) year after the impact assistance payment is approved and annually each year thereafter for the duration in which distributions are made and until all distributions are expended.
The industrial siting council shall adopt rules as necessary to implement this subsection.

(d)

As used in subsection (c) of this section:

(iii)

"Unmitigated impact" means an expense:

(A)

Incurred by a county, city or town directly or indirectly attributable to the construction of an industrial facility;

(B)

That is not otherwise mitigated by any other entity;

(C)

For medical services, fire and law enforcement services, roads and public utilities.

Expenses shall be supported by an analysis prepared by the county, city or town of the current excess capacity in each of these areas.

Expenses in these areas may include the employment of additional employees or officers only if the county, city or town has determined overtime compensation or contract labor would not be appropriate; and

(D)

Excluding expenses for which a county, city or town previously received an impact assistance payment unless the county, city or town can demonstrate the expenses are new or ongoing.

39
‑
16
‑
111.

Distribution.

(d)

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
‑
12
‑
102, under a permit issued pursuant to W.S. 35
‑
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
‑
102 the department of revenue 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 an amount determined by the industrial siting council under this subsection 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 department of revenue shall discontinue payments under this section when construction of any phase has ceased or been substantially completed for twelve (12) consecutive months. The person constructing the industrial facility and the counties affected by the construction of the industrial facility shall provide evidence at the public hearing held pursuant to W.S. 35
‑
12
‑
110(f)(i) of the mitigated and unmitigated impacts that the construction will have on the counties, cities and towns determined by the industrial siting council to be affected by the construction of the industrial facility. The industrial siting council shall review the evidence of the impacts and determine, applying a preponderance of evidence standard, the dollar amount of the unmitigated impacts. The council shall state, in the order issued under W.S. 35
‑
12
‑
113(a), the total dollar amount of the impact assistance payment and
the reasons for determining that
include specific findings of fact detailing the basis for the total dollar
amount
determination and if requested by the affected county, city or town, its justification for rejecting, in whole or in part, an application for an impact assistance payment
. The impact assistance payment shall be distributed by the department of revenue in an amount and on a schedule determined by the council, based on evidence presented at the hearing. Under no circumstances shall the
total dollar amount of the
impact assistance payment exceed
two and seventy six hundredths percent (2.76%)
the maximum allowable percentage specified in this subsection
of the
total estimated material costs of the facility, as those costs are determined by the council.
The maximum allowable percentage shall be two and twenty
‑
five hundredths percent (2.25%) for facilities with total estimated materials costs of three hundred fifty million dollars ($350,000,000.00) or less except as otherwise provided in this subsection, two percent (2%) for facilities with total estimated materials costs in excess of three hundred fifty million dollars ($350,000,000.00) but less than eight hundred fifty million dollars ($850,000,000.00) and one and one
‑
half percent (1.50%) for facilities with total estimated materials costs of eight hundred fifty million dollars ($850,000,000.00) or more. For facilities with total estimated materials costs of three hundred fifty million dollars ($350,000,000.00) or less, the council may increase the maximum allowable percentage to not more than two and seventy
‑
six hundredths percent (2.76%) if the council includes in the specific findings required under this subsection that the maximum allowable percentage of two and twenty
‑
five hundredths percent (2.25%) is insufficient to mitigate the identified impacts. The council shall submit a report to the joint appropriations committee and the joint minerals, business and economic development interim committee not later than ten (10) business days after increasing the maximum allowable percentage as specified in this subsection, including data to support the increase.
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
‑
12
‑
110(f)(i).
In determining the distribution ratio, the industrial siting council may consider the extent and location of the unmitigated impacts, the populations of the affected counties, cities and towns, including any
disproportionate impacts on smaller communities, and any other equitable factor.
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
‑
12
‑
106, may petition the industrial siting council for review and adjustment of the distribution ratio or the amount of the impact assistance payment 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
‑
15
‑
204(a)(i) and 39
‑
16
‑
204(a)(i) or at least a total of a two percent (2%) sales tax authorized under W.S. 39
‑
15
‑
204(a)(i), (iii) and (vi) and at least a total of a two percent (2%) use tax authorized under W.S. 39
‑
16
‑
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 department of revenue who will thereafter distribute the impact assistance payment to the counties pursuant to that ratio.
Each county, city and town that receives a distribution under this subsection shall provide an annual report to the industrial siting council describing how the impact assistance payment was expended. The report shall first be
submitted not later than one (1) year after the impact assistance payment is approved and annually each year thereafter for the duration in which distributions are made and until all distributions are expended.
The industrial siting council shall adopt rules as necessary to implement this subsection.

(e)

As used in subsection (d) of this section:

(iii)

"Unmitigated impact" means as defined by W.S. 39
‑
15
‑
111(d)(iii).

Section 2.

This act shall only apply to impact assistance payments for industrial facility permit applications submitted on or after the effective date of this act. The impact assistance payments for industrial facilities that are not subject to this act shall be determined on the basis of the law as it existed at the time the request for the impact assistance payment was submitted to the industrial siting council.

Section 3
.

This act is effective July 1, 2022
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1