HB0115 - Beginning Agricultural producer development bonds.

 

2001

State of Wyoming

01LSO-0028.E1

ENGROSSED

 

 

 

HOUSE BILL NO.  HB0115

 

 

Beginning Agricultural producer development bonds.

 

Sponsored by:

 

 

A BILL

 

for

 

 1  AN ACT relating to administration of government; providing
 2  for agricultural development bonds as specified; creating
 3  an authority as specified; creating duties and powers;
 4  providing for administration of the program as specified;
 5  providing for the directors of the authority; authorizing
 6  state investment in bonds of the authority; providing for
 7  legislative intent; and providing for an effective date.

 8 

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

10 

11         Section 1.  W.S. 9-7-301 through 9-7-326 are created
12  to read:

13 

14                         ARTICLE 3

15         BEGINNING AGRICULTURAL PRODUCER FINANCE AUTHORITY

16 

 

Page  1

 

 

 

 1         9-7-301.  Short title.

 2 

 3  This article shall be known and may be cited as the
 4  "Beginning Agricultural Producer Finance Authority Act".

 5 

 6         9-7-302.  Definitions.

 7 

 8         (a)  As used in this article:

 9 

10              (i)  "Agricultural enterprise" means the real and
11  personal property constituting farms and ranches and other
12  agricultural endeavors the authority wishes to include
13  within the provisions of this article;

14 

15              (ii)  "Authority" means the beginning
16  agricultural producer finance authority created pursuant to
17  this article;

18 

19              (iii)  "Beginning agricultural producer" is a
20  person who has never had any direct or indirect ownership
21  interest in substantial farmland, as defined by title 26,
22  section 147 of the United States Internal Revenue Code;

23 

 

Page  2

 

 

 

 1              (iv)  "Board" means the board of directors of the
 2  authority;

 3 

 4              (v)  "Bonds" means bonds, notes and certificates,
 5  and bond, grant or revenue anticipation notes or any other
 6  evidence of indebtedness representing an obligation to pay
 7  money;

 8 

 9              (vi)  "Cost" means the cost of land, improvements
10  or depreciable agricultural property;

11 

12              (vii)  "Lender" means any institution or
13  association qualified within this state to originate and
14  service loans.

15 

16         9-7-303.  Creation of authority.

17 

18  There is created the beginning agricultural producer
19  finance authority, with powers and duties as are
20  hereinafter provided.

21 

22         9-7-304.  Membership of board of directors of the
23  beginning agricultural producer finance authority.

24 

 

Page  3

 

 

 

 1  The board of directors of the beginning agricultural
 2  producer finance authority consists of five (5) members
 3  appointed by the co-chair of the Wyoming business council
 4  who is not the governor. The board of directors shall
 5  include: one (1) member of the Wyoming business council;
 6  one (1) member of the Wyoming board of agriculture; one (1)
 7  member of the Wyoming rural development council; and two
 8  (2) at-large members.

 9 

10         9-7-305.  Duties and goal of board.

11 

12  The board shall administer the beginning agricultural
13  producer bond program and make annual recommendations to
14  the legislature and governor on programs to develop and
15  promote agricultural enterprises in this state.

16 

17         9-7-306.  Election of board officers.

18 

19  The authority shall annually elect from its members any
20  officers it deems advisable. A majority of the members
21  constitutes a quorum. The board shall meet at the call of
22  the chair or a majority of the members.

23 

24         9-7-307.  Compensation of board members.

 

Page  4

 

 

 

 1 

 2  Members of the authority shall receive no compensation for
 3  their services but shall receive an allowance per day for
 4  the time spent in attending and traveling to and from
 5  meetings of the authority, and expenses and travel
 6  allowance pursuant to W.S. 9-3-102.

 7 

 8         9-7-308.  Powers of authority.

 9 

10         (a)  The authority may:

11 

12              (i)  Have perpetual succession as a body politic
13  and corporate exercising essential public functions;

14 

15              (ii)  Adopt, amend and repeal bylaws, rules and
16  regulations not inconsistent with this article, regulate
17  its affairs, carry into effect the powers and purposes of
18  the authority and conduct its business consistent with the
19  provisions of this article;

20 

21              (iii)  Sue and be sued in its own name;

22 

23              (iv)  Have an official seal and alter it at will;

24 

 

Page  5

 

 

 

 1              (v)  Maintain an office at such place or places
 2  within the state as it may designate;

 3 

 4              (vi)  Make and execute contracts and all other
 5  instruments necessary or convenient for the performance of
 6  its duties and the exercise of its powers and functions
 7  under this article;

 8 

 9              (vii)  Employ persons as may be required and
10  engage the services of private consultants and legal
11  counsel to render professional and technical assistance and
12  advice in carrying out the purposes of this article;

13 

14              (viii)  Procure insurance against any loss in
15  connection with the property and other assets, including
16  loans and loan notes in such amounts and from such insurers
17  as it may deem advisable;

18 

19              (ix)  Borrow money and issue bonds, notes, bond
20  anticipation notes or other obligations for any of its
21  corporate purposes and fund or refund such obligations as
22  provided in this article;

23 

 

Page  6

 

 

 

 1              (x)  Receive and accept from any source aid or
 2  contributions of monies, property, labor or other things of
 3  value to be held, used and applied to carry out the
 4  purposes of this article subject to the conditions upon
 5  which the grants or contributions are made, including, but
 6  not limited to, gifts or grants from any department, agency
 7  or instrumentality of the United States for any purpose
 8  consistent with the provisions of this article;

 9 

10              (xi)  Enter into agreements with any department,
11  agency or instrumentality of the United States or this
12  state and with lenders or others and enter into loan
13  agreements, sales contracts and leases and other financing
14  arrangements with a beginning agricultural producer or
15  other contracting parties in connection with the beginning
16  agricultural producer bond program or for the purpose of
17  planning, regulating and providing for the financing or
18  refinancing of any agricultural enterprises;

19 

20              (xii)  Enter into contracts or agreements with
21  lenders for the servicing and processing of loans or with
22  any person or entity providing credit enhancement for the
23  bonds of the authority;

24 

 

Page  7

 

 

 

 1              (xiii)  To the extent permitted under its
 2  contract with the holders of bonds of the authority,
 3  consent to any modification with respect to the rate of
 4  interest, time and payment of any installment of principal
 5  or interest, or any other term of any contract, loan, loan
 6  note, loan note commitment, contract, lease or agreement of
 7  any kind to which the authority is a party;

 8 

 9              (xiv)  To the extent permitted under its contract
10  with the holders of bonds of the authority, enter into
11  contracts with any lender containing provisions enabling
12  the authority to reduce the rental or carrying charges to
13  persons unable to pay the regular schedule or charges when,
14  by reason of other income or payment by any department,
15  agency or instrumentality of the United States or of this
16  state, the reduction can be made without jeopardizing the
17  economic stability of the agricultural enterprise being
18  financed;

19 

20              (xv)  Invest proceeds of any bonds not needed for
21  immediate disbursement in any investment permitted under
22  the constitution and laws of this state;

23 

 

Page  8

 

 

 

 1              (xvi)  Collect fees and charges, as the authority
 2  determines to be reasonable, in connection with its loans,
 3  advances, insurance, commitments, servicing and other
 4  activities;

 5 

 6              (xvii)  Cooperate with and exchange services,
 7  personnel and information with any federal, state or local
 8  governmental agency;

 9 

10              (xviii)  Sell, at public or private sale, with or
11  without public bidding, any loan or other obligation held
12  by the authority;

13 

14              (xix)  Mortgage, pledge, assign or grant security
15  interests in any or all of its notes or other instruments,
16  contract rights or other property, including, but without
17  limitation to, any receipts from insurance on or guarantees
18  of any of its notes or other instruments, as security for
19  the payment of the principal of, premium, if any, and
20  interest on any bonds issued by the authority, or as
21  security for any credit enhancement or other agreements
22  made in connection therewith, whether then owned or
23  thereafter acquired, and to pledge the revenues from which
24  the bonds are payable and any other available revenues or

Page  9

 

 

 

 1  assets as security for the payment of the principal of,
 2  premium, if any, and interest on the bonds and any
 3  agreements made in connection therewith;

 4 

 5              (xx)  Do any act and execute any instrument which
 6  in the authority's judgment is necessary or convenient to
 7  the exercise of the powers granted by this article or
 8  reasonably implied from it;

 9 

10              (xxi)  Assign the loans or security documents or
11  other instruments to bondholders as security without
12  recourse.

13 

14         9-7-309.  Lending power of authority.

15 

16         (a)  The authority may authorize a lender to:

17 

18              (i)  Make, and undertake commitments to make,
19  loans or deposits with lenders including certificates of
20  deposits, under terms and conditions which shall require
21  lenders to make loans (in an amount substantially equal to
22  the principal amount of the loan or deposit) to or enter
23  into leases with borrowers to finance the costs of
24  agricultural enterprises.  Loan commitments or actual loans

Page 10

 

 

 

 1  shall be originated through and serviced by any bank, trust
 2  company, savings and loan association, mortgage banker or
 3  other financial institutions authorized to transact
 4  business in this state;

 5 

 6              (ii)  Invest in, purchase or make commitments to
 7  invest in or purchase, and take assignments of, loans made
 8  by lenders to borrowers to finance the costs of
 9  agricultural enterprises;

10 

11              (iii)  Invest in, purchase or make commitments to
12  invest in or purchase, any securities or obligations deemed
13  necessary or desirable by the authority for the purpose of
14  pledging the securities or obligations as security for any
15  bonds of the authority;

16 

17              (iv)  Make loans directly to a beginning
18  agricultural producer and enter into agreements, contracts
19  and other instruments with a beginning agricultural
20  producer or lender in connection with the beginning
21  agricultural producer bond program.

22 

23         9-7-310.  Borrowing power of authority.

24 

 

Page 11

 

 

 

 1         (a)  The authority may:

 2 

 3              (i)  Borrow funds and issue its bonds from time
 4  to time and in principal amounts as the authority deems
 5  necessary to carry out its purposes under this article,
 6  including, but not limited to, the exercise of its powers
 7  under W.S. 9-7-309, the payment of interest on its bonds,
 8  the establishment of reserves to secure the bonds, and
 9  payment of other expenses necessary, convenient and
10  incident to fulfillment of its purposes;

11 

12              (ii)  Issue from time to time bonds to renew or
13  to pay bonds, including the interest or premium thereon,
14  and whenever it deems refunding expedient, to refund any
15  bonds and to pay costs of issuance of the refunding bonds
16  by the issuance of new bonds, whether the bonds to be
17  refunded have or have not matured, and to issue bonds
18  partly to refund outstanding bonds and partly for any other
19  of its corporate purposes. The refunding bonds may be sold
20  and the proceeds applied to the purchase, redemption or
21  payment of the bonds to be refunded, or exchanged for the
22  bonds to be refunded.

23 

 

Page 12

 

 

 

 1         9-7-311.  Authority bonds not state or subdivision
 2  obligation.

 3 

 4  Obligations issued under the provisions of this article
 5  shall not be deemed to constitute a debt, liability or
 6  obligation of the state or of any other political
 7  subdivision thereof, nor a pledge of the full faith and
 8  credit of the state or any other political subdivision, but
 9  shall be payable solely as provided in this article. Each
10  obligation issued under this article shall contain on the
11  face thereof a statement to the effect that neither the
12  full faith and credit, nor the taxing power of the state,
13  or of any political subdivision thereof is pledged to the
14  payment of the principal of or the interest on such
15  obligation.  All obligations of the authority issued under
16  the provisions of this article shall be authority bonds or
17  notes and shall not be general obligations of the state of
18  Wyoming.

19 

20         9-7-312.  Bond authorization; terms and sale; interest
21  rate; noninterest bearing bonds.

22 

23  The bonds shall be authorized by a resolution of the
24  authority, shall bear such date or dates and shall mature

Page 13

 

 

 

 1  at such time or times as the resolution or the instrument
 2  providing for the issuance of such bonds may provide,
 3  except that no bond may mature more than fifty (50) years
 4  from the date of its issue.  The bonds shall bear interest
 5  at such rate or rates, be in such denominations, be in such
 6  form, either coupon or registered, be evidenced by physical
 7  certificates or uncertificated, carry such registration
 8  privileges, be executed in such manner, be payable in such
 9  medium of payment, at such place or places, and be subject
10  to such terms of redemption, including redemption prior to
11  maturity, as such resolution or the instrument providing
12  for the issuance of such bonds may provide. No other state
13  laws relating to the offer, sale or issuance of revenue
14  bonds or any other security may apply to bonds issued by
15  the authority.  Bonds of the authority may be sold by the
16  authority at public or private sale, and at such price or
17  prices as the authority shall determine.  The bonds of the
18  authority may bear interest at a fixed, variable or
19  adjustable rate (and may be convertible from one method of
20  calculating interest to another) and such interest rate may
21  be based upon any formula or contractual arrangement for
22  the periodic determination of interest rates, all as may be
23  established in the resolution or instrument providing for
24  the issuance of such bonds.  Any such formula or

Page 14

 

 

 

 1  contractual arrangement may authorize the delegation of the
 2  interest rate setting function to a third party subject
 3  only to such standards or criteria as shall be set forth in
 4  the resolution or instrument providing for the issuance of
 5  such bonds.  In no event may the setting or resetting of
 6  the rate of interest on the authority's bonds or the
 7  conversion from one method of determining interest to
 8  another constitute a reissuance or refunding of bonds
 9  issued by the authority if such action is taken in
10  accordance with the resolution or instrument providing for
11  the initial issuance of such bonds. The authority may issue
12  noninterest bearing bonds or bonds bearing interest at a
13  rate of zero percent (0%) and sell the same at such price
14  or prices as may be determined by the authority.

15 

16         9-7-313.  Pledges by authority.

17 

18  Any pledge made by the authority shall be valid and binding
19  from the time when the pledge is made.  The revenue, money
20  or properties so pledged and thereafter received by or on
21  behalf of the authority shall immediately be subject to the
22  lien of such pledge without any physical delivery thereof
23  or further act, and the lien of any such pledge shall be
24  valid and binding as against all parties having claims of

Page 15

 

 

 

 1  any kind in tort, contract or otherwise against the
 2  authority, irrespective of whether the parties have notice
 3  thereof. Neither the resolution nor the trust indenture, if
 4  any, nor any other instrument by which a pledge is created
 5  need be recorded.

 6 

 7         9-7-314.  Redemption of bonds.

 8 

 9  The authority, subject to such agreements with bondholders
10  as may then exist, may purchase and cancel its bonds out of
11  any funds available therefore, at any reasonable price
12  which, if the bonds are then redeemable, may not exceed the
13  redemption price then applicable plus accrued interest to
14  the next interest payment thereon.

15 

16         9-7-315.  Bonds as negotiable instruments.

17 

18  Whether or not the bonds are in the form and character of
19  negotiable instruments, the bonds are hereby made
20  negotiable instruments, subject only to provisions of the
21  bonds relating to registration.

22 

23         9-7-316.  Execution of bonds; seal.

24 

 

Page 16

 

 

 

 1  Bonds of the authority may be executed by the manual or
 2  facsimile signatures of the officers of the authority
 3  authorized by the resolution of the authority to execute
 4  such bonds. If such resolution authorizes or directs the
 5  affixing of the seal of the authority on bonds of the
 6  authority, such seal or a facsimile thereof may be
 7  impressed or imprinted thereon. In the event that any
 8  officer of the authority shall cease to be an officer of
 9  the authority prior to the delivery of any bonds or coupons
10  signed by them, their signatures or facsimiles thereof
11  shall nevertheless be valid and sufficient for all
12  purposes, the same as if such members or officers had
13  remained in office until such delivery.

14 

15         9-7-317.  Immunity from personal liability on bonds.

16 

17  Neither the members of the authority nor any other person
18  executing the bonds issued under this article is subject to
19  personal liability or accountability by reason of the
20  issuance thereof.

21 

22         9-7-318.  State pledge not to alter rights of
23  authority to detriment of its bondholders.

24 

 

Page 17

 

 

 

 1  The state does hereby pledge to and agree with the holder
 2  of any bonds issued under this article that the state will
 3  not limit or alter the rights vested in the authority to
 4  fulfill the terms of any agreements made with the holders
 5  thereof or in any way impair the rights or remedies of the
 6  holders until the bonds, together with the interest
 7  thereon, with interest on any unpaid installments of
 8  interest, and all costs and expenses in connection with any
 9  action or proceeding by or on behalf of the holders, are
10  fully met and discharged.  The authority may include this
11  pledge and agreement of the state in any agreement with the
12  holders of the bonds.

13 

14         9-7-319.  Bonds as authorized investments and
15  securities for deposits.

16 

17  The bonds and notes of the authority are hereby made
18  securities in which all public officers and bodies of this
19  state and all municipal subdivisions, all insurance
20  companies and associations and other persons carrying on
21  insurance business, all banks, bankers, trust companies,
22  including savings and loan associations, building and loan
23  associations, investment banking companies and other
24  persons carrying on an investment banking business, all

Page 18

 

 

 

 1  administrators, conservators, executors, trustees and other
 2  fiduciaries and all other persons who are now or may
 3  hereafter be authorized to invest in bonds or obligations
 4  of the state, may properly and legally invest in the bonds
 5  and notes of the authority funds including capital in their
 6  own control or belonging to them.  The bonds and notes are
 7  also hereby made securities which may be deposited with and
 8  may be received by all public officers and bodies of this
 9  state and all municipalities and municipal subdivisions for
10  any purpose for which the deposit of bonds or notes or
11  other obligations of this state is now or may hereafter be
12  authorized.

13 

14         9-7-320.  Rules and regulations of authority.

15 

16         (a)  The authority may, pursuant to the Wyoming
17  Administrative Procedure Act, adopt rules or regulations as
18  it deems necessary or desirable to implement the purposes
19  of this article, including, but not limited to:

20 

21              (i)  Setting forth the procedures for applicants
22  to apply for loans under this article;

23 

 

Page 19

 

 

 

 1              (ii)  Establishing criteria, including rates,
 2  fees and other charges for originating or servicing loans
 3  and determining which applicants will receive such loans;

 4 

 5              (iii)  Governing the use of proceeds of such
 6  loans;

 7 

 8              (iv)  Establishing criteria for the terms and
 9  conditions upon which such loans shall be made, including
10  the terms of security given, if any, to secure such loans;

11 

12              (v)  Governing the use of proceeds by lenders of
13  funds advanced to such lenders by the authority including
14  the terms and conditions upon which such proceeds shall be
15  loaned to borrowers for the purposes described in this
16  article.

17 

18         9-7-321.  Construction with other laws.

19 

20  Insofar as the provisions of this article are inconsistent
21  with the provisions of any other law, the provisions of
22  this article shall be controlling.

23 

24         9-7-322.  Liberal construction of article.

 

Page 20

 

 

 

 1 

 2  This article, being necessary for the welfare of the state
 3  and its inhabitants, shall be liberally construed so as to
 4  effectuate its purposes.

 5 

 6         9-7-323.  Disposition of authority assets on
 7  dissolution.

 8 

 9  If, after all indebtedness and other obligations of the
10  authority are discharged, the authority is dissolved, its
11  remaining assets shall inure to the benefit of the state.

12 

13         9-7-324.  Report to governor and legislature.

14 

15         (a)  The authority shall submit to the governor and
16  the management council within ninety (90) days of the close
17  of its fiscal year a complete and detailed report setting
18  forth:

19 

20              (i)  Its operations and accomplishments;

21 

22              (ii)  Its receipts and expenditures during such
23  fiscal year in accordance with the categories or

Page 21

 

 

 

 1  classifications established by the authority for its
 2  operating and capital outlay purposes;

 3 

 4              (iii)  Its assets and liabilities at the end of
 5  its fiscal year, including a schedule of its loans and
 6  commitments and the status of reserve, special or other
 7  funds; and

 8 

 9              (iv)  A schedule of its notes and bonds
10  outstanding at the end of its fiscal year, together with a
11  statement of the amounts redeemed and incurred during such
12  fiscal year.

13 

14         9-7-325.  Compliance with Internal Revenue Code.

15 

16  Notwithstanding any provision under the laws of this state,
17  the authority in order to accomplish the purposes provided
18  in this section and this article may perform all acts
19  necessary to comply with the requirements of title 26, §
20  103 of the Internal Revenue Code of 2000, as amended, and
21  any regulation promulgated pursuant to § 103 to insure that
22  all interest from bonds issued under this article are tax
23  exempt.  All hearings or acts necessary to comply with §
24  147(f) of the Internal Revenue Code of 2000, as amended,

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 1  and any regulations promulgated pursuant to § 147(f) are
 2  exempt from the requirements and procedures of the Wyoming
 3  Administrative Procedure Act.  The governor is the
 4  approving representative for the state for the purpose of
 5  complying with the applicable provisions of § 147(f) of the
 6  Internal Revenue Code of 2000, as amended, and any
 7  regulations promulgated pursuant to § 147(f) necessary to
 8  insure that all interest from bonds issued are tax exempt.

 9 

10         9-7-326.  Confidentiality of borrower information.

11 

12  All financial information submitted by the borrower to the
13  board shall be confidential.

14 

15         Section 2.  W.S. 9-4-711(a)(ii) is amended to read:

16 

17         9-4-711.  Permissible investments of state funds.

18 

19         (a)  Any funds of the state of Wyoming may be invested
20  by the state treasurer, or his designee under W.S.
21  9-4-834(a), in any one (1) or more of the following
22  securities:

23 

 

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 1              (ii)  In bonds issued by the state of Wyoming,
 2  counties, cities, school districts, or special improvement
 3  bonds issued by cities, towns and counties, or in
 4  industrial development revenue bonds issued by cities,
 5  towns and counties of the state, or bonds issued by the
 6  beginning agricultural producer finance authority, or in
 7  interest bearing warrants of this state, or in bonds of
 8  irrigation districts organized and existing under and by
 9  virtue of the laws of this state;

10 

11         Section 3.  This act is effective immediately upon
12  completion of all acts necessary for a bill to become law
13  as provided by Article 4, Section 8 of the Wyoming
14  Constitution.

15 

16                         (END)

 

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