Back to Wyoming

SF0027 • 2024

Special districts bond elections exception.

AN ACT relating to special districts; providing an exception to special district bond elections for improvement and service districts and water and sewer districts as specified; specifying applicability; and providing for an effective date.

Elections Taxes
Enacted

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

Sponsor
Corporations
Last action
2024-03-18
Official status
enrolled
Effective date
7/1/2024

Plain English Breakdown

The summary provided in the candidate explanation is accurate but slightly broader than what the official bill text supports. The law specifically mentions borrowing from the federal government, state of Wyoming, or its agencies.

Special Districts Bond Elections Exception

This law allows certain special districts to issue bonds without holding a voter election if they borrow money from the federal government, state of Wyoming, or its agencies and agree to repay it with specific revenues or assets.

What This Bill Does

  • Allows improvement and service districts to issue bonds for acquiring, constructing, improving, or financing projects that benefit district residents.
  • Permits water and sewer districts to borrow money or issue securities to acquire or improve their systems without a voter election if they repay the borrowed funds with specific revenues or assets.
  • Exempts certain agreements from being considered as bonds if repayment is secured by revenues generated by the project or service, thus avoiding the need for an election.

Who It Names or Affects

  • Improvement and service districts
  • Water and sewer districts

Terms To Know

Bond
A financial instrument that represents a loan made by investors to an issuer in exchange for repayment of the principal amount plus interest.
Revenue
Money earned from business activities or services provided, used to repay borrowed funds under this law.

Limits and Unknowns

  • The exemption applies only if the agreement is with the federal government, state of Wyoming, or its agencies.
  • Existing bonds issued before July 1, 2024 are not affected by this act.

Bill History

  1. 2024-03-18 LSO

    Assigned Chapter Number 93

  2. 2024-03-18 Governor

    Governor Signed SEA No. 0045

  3. 2024-03-07 House

    H Speaker Signed SEA No. 0045

  4. 2024-03-07 Senate

    S President Signed SEA No. 0045

  5. 2024-03-06 LSO

    Assigned Number SEA No. 0045

  6. 2024-03-06 House

    H 3rd Reading:Passed 35-27-0-0-0

  7. 2024-03-05 House

    H 2nd Reading:Passed

  8. 2024-03-04 House

    H COW:Passed

  9. 2024-03-04 House

    H Placed on General File

  10. 2024-03-04 House

    H07 - Corporations:Recommend Do Pass 7-2-0-0-0

  11. 2024-02-26 House

    H Introduced and Referred to H07 - Corporations

  12. 2024-02-23 House

    H Received for Introduction

  13. 2024-02-23 Senate

    S 3rd Reading:Passed 31-0-0-0-0

  14. 2024-02-22 Senate

    S 2nd Reading:Passed

  15. 2024-02-21 Senate

    S COW:Passed

  16. 2024-02-20 Senate

    S Placed on General File

  17. 2024-02-20 Senate

    S07 - Corporations:Recommend Do Pass 4-1-0-0-0

  18. 2024-02-12 Senate

    S Introduced and Referred to S07 - Corporations 31-0-0-0-0

  19. 2024-01-24 Senate

    S Received for Introduction

  20. 2023-12-18 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 24LSO-0234

Bill No.:

SF0027

Effective:

7/1/2024

LSO No.:

24LSO-0234

Enrolled Act No.:

SEA No. 0045

Chapter No.:

93

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

Special districts bond elections exception.

Has Report:

No

Subject:

Providing an exception to special district bond election requirements for improvement and service districts and water and sewer districts.

Summary/Major Elements:

An improvement and service district may issue bonds to obtain funds for the acquisition, construction, improvement or financing of improvements and services for the benefit of the district.

A water and sewer district may issue bonds or other securities to acquire or improve a water or sewer system.

In the event that either district chooses to issue bonds, the district must submit a resolution to its qualified voters to approve the issuance of the bonds.

This act provides an exception to the election requirement for the issuance of bonds under certain conditions. If an improvement and service district or a water and sewer district executes an agreement to repay funds borrowed from the United States of America, the state of Wyoming, or any subdivision, agency or department of either, then the agreement will not be considered a bond and an election will not be required if repayment is to be made from revenues generated by the improvement or service for which the funds were acquired and the security for the borrowed funds is limited to the assets of the improvement or service.

This act shall not impair or affect any bond, note or obligation that is issued or created before July 1, 2024.

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
24LSO-0234

ORIGINAL Senate

File No
.
SF0027

ENROLLED ACT NO. 45,

SENATE

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2024 Budget Session

AN ACT relating to special districts; providing an exception to special district bond elections for improvement and service districts and water and sewer districts as specified; specifying applicability; and providing for an effective date.

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

Section 1.

W.S. 18
‑
12
‑
120 and 41
‑
10
‑
128 are amended to read:

18
‑
12
‑
120.

Bond elections; resolution for submission of proposition to voters.

(a)

By resolution of its board a district may submit to its qualified voters, by mail ballot or at an election on a date authorized under W.S. 22
‑
21
‑
103, as determined by the board of county commissioners, the proposition of issuing bonds pursuant to this act to provide funds for the acquisition, construction, improving or financing of improvements as well as performing services for the benefit of the residents of the district, including any or all expenses incidental thereto or connected therewith.

(b)

Notwithstanding subsection (a) of this section and the provisions of W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112, any document executed by the board of a district evidencing an agreement to repay funds borrowed from the United States of America, the state of Wyoming or from any subdivision, agency or department of either the United States or the state of Wyoming, shall not be considered a bond, and shall not require an election under this chapter when:

(i)

Repayment is to be made solely from revenues generated by the service with which a financed improvement or service is associated; and

(ii)

Security for the loan or borrowed funds is restricted to a claim on the revenues generated from the service or to a claim on the assets of the improvement or service.

41
‑
10
‑
128.

Borrowing money and issuing bonds for purpose of acquiring or improving water or sewer system or other income
‑
producing project.

(a)

A district in pursuance of a resolution may borrow money, issue bonds, or otherwise extend its credit for the purpose of acquiring or improving a water or sewer system, or other income
‑
producing project; provided that the bonds or other obligations shall be made payable solely out of the net revenues derived from the operation of the system or other such project; and the systems and projects may be combined, operated and maintained as joint systems or projects, in which case the bonds or other obligations shall be made payable solely out of the net revenues derived from the operation of the joint systems or projects. No revenue bonds or other like securities shall be issued unless the issuance thereof has been submitted to a vote of the electors and approved by a majority of the qualified taxpaying electors voting on the question and by a majority of other qualified electors voting thereon, or, if no ballots are cast in one (1) of the ballot boxes and a majority of the ballots in the other ballot box favor the issuance of such bonds or other like securities, approved either by a majority of the qualified taxpaying electors voting thereon or by a majority of the other qualified electors voting thereon, as the case may be, at an election held as provided for bond elections by the Political Subdivision Bond Election Law, W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112.

(b)

Notwithstanding subsection (a) of this section and the provisions of W.S. 22
‑
21
‑
101 through 22
‑
21
‑
112, any document executed by a district evidencing an agreement to repay funds borrowed from the United States of America, the state of Wyoming or from any subdivision, agency or department of either the United States or the state of Wyoming, shall not be considered a bond and shall not require an election under this chapter when:

(i)

Repayment is to be made solely from revenues generated by the service with which a financed improvement or service is associated; and

(ii)

Security for the loan or borrowed funds is restricted to a claim on the revenues generated from the service or to a claim on the assets of the improvement or service.

Section 2.

Nothing in this act shall be construed to impair or affect any bond, note or obligation issued or created before the effective date of this act.

Section 3
.

This act is effective July 1, 2024
.

(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