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: Joint Agriculture, Public Lands and Water
Resources Interim Committee
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,
Page 22
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
Page 23
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)
Page 24