2002

State of Wyoming

02LSO-0199.W4

WORKING DRAFT

HOUSE BILL NO.

School and other capital construction financing.

Sponsored by: Representative(s) HDRAFT

A BILL

for

AN ACT relating to administration of government; providing increased bonding authority for school capital construction; providing bonding authority for highway and airport construction and development; repealing existing bonding authority for specified correctional facility; increasing fuel tax; providing for distribution of additional fuel tax; redistributing certain federal revenues; restricting school district bonding eligible for the state guarantee program; restricting school district bonding eligible for assistance under the mill levy supplement program; amending related provisions; and providing for an effective date.

*** STAFF COMMENTS ***

This draft has been arranged by issue for ease of explanation at this meeting. If sponsored, it will be reorganized in proper format and staff comments will be deleted.

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

Section 1. W.S. 24-8-201 through 24-8-207 and 9-4-608 are created to read:

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Sections 24-8-201 through 24-8-207 deal with "GARVEE" bonding authority for highways. The provisions are taken from Arizona's "GARVEE" bonding statutes, with some additional language from Wyoming bonding provisions in other situations. The highway bonds will be supported by future federal highway funds, they could also be supported by remaining 14 1/8% FMRs (plus coal lease bonus distributions to the highway fund)(2 ¼% FMRs to the highway fund which are required to be used for county roads are not affected nor included within this figure of remaining "FMRs"). Section 9-4-608 authorizes bonding by the transportation commission for airports. Those bond proceeds would be used to fund airport grant and loan moneys as approved by the aeronautics commission to the local entities. The airport bonds would be supported by the "remaining FMRs" to the highway fund and coal lease bonus distributions, if the transportation commission determines to so use those funds.

24-8-201. Definitions

(a) As used in this article, unless the context otherwise requires:

(i) "Commission" means the state transportation commission;

(ii) "Grant agreement" means a written agreement between the commission and the United States of America or any of its departments or agencies by which the commission will receive a grant to construct a project or to reimburse the commission for monies spent with respect to the project;

(iii) "Grant anticipation bonds" means bonds authorized by this article;

(iv) "Grant revenues" means any revenues the commission will receive under a grant agreement, proceeds of grant anticipation bonds and income and gain from the investment of these revenues and proceeds.

24-8-202. Grant anticipation bonds; authorized; requirements.

(a) After the commission has entered into one (1) or more grant agreements, it may issue and sell grant anticipation bonds. The principal, premium, if any, and interest on the bonds shall be paid solely from any of the following:

(i) The grant revenues;

(ii) If provided by the commission at the time of authorizing the issuance of the grant anticipation bonds, other monies, lawfully available for application to that purpose. Prior to distribution to the highway fund under W.S. 9-4-601(a)(iii), (vi), (ix), (x) and (b)(i)(B) sufficient revenues for the purposes of this paragraph shall be deducted therefrom and credited to the grant anticipation bond account within the earmarked revenue fund. No state tax revenues shall be pledged for or used to pay any grant anticipation bonds.

*** STAFF COMMENTS ***

Other monies, would include remaining FMRs and coal lease bonus payments under this bill.

(b) Except as otherwise provided, bonds issued under this section shall be in a form, issued in a manner, at, above or below par at a discount not exceeding ten percent (10%) of the principal amount of the bonds, at public or private sale, and issued with recitals, terms, covenants, conditions and other provisions not contrary to other applicable statutes, as may be provided by the commission in a resolution authorizing their issuance and in an indenture or other appropriate proceeding.

(i) Shall be of denominations of five thousand dollars ($5,000.00) or multiples thereof;

(ii) Shall be fully negotiable within the meaning of and for all purposes of the Uniform Commercial Code, W.S. 34.1-1-101 through 34.1-10-104;

(iii) Shall mature at a time or times not exceeding thirty (30) years from their date;

(iv) Shall bear interest payable annually, semiannually or at other designated intervals, but the first interest payment date may be for interest accruing for any period not exceeding one (1) year;

(v) Shall be made payable in lawful money of the United States at the office of the state treasurer or by a trustee, registrar, paying agent, or transfer agent within or without the state of Wyoming;

(vi) May be additionally secured as determined by the transportation commission.

(d) The commission may retain the services of a financial advisor and sell the bonds to an underwriter, either by competitive or negotiated bid. The terms of any contract including fees to be paid shall be available for public review and inspection.

24-8-203. Refunding.

(a) The commission may issue grant anticipation bonds to refund grant anticipation bonds previously issued:

(i) To refund and discharge and extend or shorten the maturities of all or any part of any outstanding bonds issued under this article including any interest thereon in arrears or about to become due;

(ii) For the purpose of reducing interest costs on bonds issued under this article or effecting other economies; or

(iii) For the purpose of modifying or eliminating any contractual limitations or provisions contained in any indenture or other proceedings authorizing outstanding bonds issued under this article. Any refunding permitted by this section shall be accomplished in the manner prescribed by W.S. 16-5-101 through 16-5-119, except any refunding grant anticipation bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation or be considered general obligations of the state.

24-8-204. Limitations.

(a) The amount of grant anticipation bonds issued pursuant to this article shall not exceed the lesser of:

(i) The aggregate of all uncollected grant revenues to be received by the commission;

(ii) Six hundred million dollars ($600,000,000.00).

24-8-205. Application of grant revenues; grant anticipation bond fund; payment of bonds.

(a) On the issuance of any grant anticipation bonds, the grant revenues to be received by the commission pursuant to the applicable grant agreement shall be collected and, as provided by the commission at the time of authorizing the issuance of the grant anticipation bonds, used for any of the following:

(i) Paid into a special account within the earmarked revenue fund to be known as the grant anticipation bond account;

(ii) Held for application to the payment of the costs of the project to which the grant agreement relates;

(iii) Applied to reimburse the commission for monies previously spent with respect to the project.

(b) As long as any grant anticipation bonds are outstanding, monies paid into the grant anticipation bond account pursuant to subsection (a) of this section shall be used only to pay principal and interest on the grant anticipation bonds. Pending expenditure, the state treasurer shall invest bond proceeds in a manner which complies with all requirements of the internal revenue service and the bond indenture to insure the bonds will remain tax free investments.

(c) Notwithstanding any other law, this article authorizes the payment when due or redemption in advance of maturity, if the bonds so provide, of all principal and interest and redemption premiums on the bonds from the monies in the grant anticipation bond account.

24-8-206. Use of proceeds.

(a) The proceeds from the sale of the bonds shall be used by the commission for payment of any of the following:

(i) Costs and expenses incurred in the construction or acquisition of the project for which the grant or grants are being made;

(ii) Legal and financial costs and expenses incurred in issuing and administering the bonds;

(iii) Costs for which the commission will be entitled to receive reimbursement pursuant to the grant agreement;

(iv) If authorized by the commission, payment of interest to accrue on the bonds during their life;

(v) Payment of the principal, premium or interest on other obligations, all or a portion of the proceeds of which were or are to be applied to the financing of the project to which the grant agreement relates.

24-8-207. Nature of grant anticipation bonds; limited obligation.

(a) Any bonds issued under this article, together with any interest accruing thereon and any prior redemption premiums due in connection therewith, are payable and collectible solely out of revenues authorized. The bondholders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute its special obligations and the commission shall not pledge the state's full faith and credit for payment of the bonds.

(b) A holder of a grant anticipation bond may not compel the payment of grant revenues to the commission.

9-4-608. Bonds for airport construction and development projects; purposes; limitations; requirements.

(a) Prior to distribution to the highway fund under W.S. 9-4-601(a)(iii), (vi), (ix), (x) and (b)(i)(B) sufficient revenues for the purposes of this section shall be deducted therefrom and credited to an airport bond repayment account within the earmarked revenue fund pursuant to the terms of the resolution, indenture or other appropriate proceeding authorizing the issuance of revenue bonds under this section. The revenues deducted shall be used as provided by this section.

(b) The state transportation commission may borrow money in a principal amount not to exceed x hundred million dollars ($x) by the issuance from time to time of one (1) or more series of revenue bonds and may encumber revenues under subsection (a) of this section for bonds in total amounts not to exceed x hundred million dollars ($x) issued to provide grants-in-aid or loans approved by the aeronautics commission for airport construction and development projects under W.S. 10-3-401(a) or 10-3-403(a). Any bonds issued under this section, together with any interest accruing thereon and any prior redemption premiums due in connection therewith, are payable and collectible solely out of revenues authorized under subsection (a) of this section. The bondholders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute its special obligations and the transportation commission shall not pledge the state's full faith and credit for payment of the bonds.

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The amount available to support the bonds would be 14 1/8% of FMR's (up to $198 million) and coal lease bonus funds of up to $1.875 million.

(c) Except as otherwise provided, bonds issued under this section shall be in a form, issued in a manner, at, above or below par at a discount not exceeding ten percent (10%) of the principal amount of the bonds, at public or private sale, and issued with recitals, terms, covenants, conditions and other provisions not contrary to other applicable statutes, as may be provided by the transportation commission in a resolution authorizing their issuance and in an indenture or other appropriate proceeding.

(d) Any bonds issued under this section:

(i) Shall be of denominations of five thousand dollars ($5,000.00) or multiples thereof;

(ii) Shall be fully negotiable within the meaning of and for all purposes of the Uniform Commercial Code, W.S. 34.1-1-101 through 34.1-10-104;

(iii) Shall mature at a time or times not exceeding thirty (30) years from their date;

(iv) Shall bear interest payable annually, semiannually or at other designated intervals, but the first interest payment date may be for interest accruing for any period not exceeding one (1) year;

(v) Shall be made payable in lawful money of the United States at the office of the state treasurer or by a trustee, registrar, paying agent, or transfer agent within or without the state of Wyoming;

(vi) May be additionally secured as determined by the transportation commission.

(e) The transportation commission may retain the services of a financial advisor and sell the bonds to an underwriter, either by competitive or negotiated bid. The terms of any contract including fees to be paid shall be available for public review and inspection.

(f) Proceeds of state revenue bonds under this section shall be credited to an airport capital construction account within the highway fund and shall be expended as authorized by the transportation commission for grants and loans for airport construction and development projects approved by the aeronautics commission. Pending expenditure, the state treasurer shall invest bond proceeds in a manner which complies with all requirements of the bond indenture and the internal revenue service to insure the bonds will remain tax free investments.

(g) The transportation commission may issue refunding revenue bonds:

(i) To refund and discharge and extend or shorten the maturities of all or any part of any outstanding bonds issued under this section including any interest thereon in arrears or about to become due;

(ii) For the purpose of reducing interest costs on bonds issued under this section or effecting other economies; or

(iii) For the purpose of modifying or eliminating any contractual limitations or provisions contained in any indenture or other proceedings authorizing outstanding bonds issued under this section.

(h) Any refunding permitted by subsection (g) of this section shall be accomplished in the manner prescribed by W.S. 16-5-101 through 16-5-119, except any refunding revenue bonds authorized by the transportation commission under this section shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation or be considered general obligations of the state. The commission shall not pledge the state's full faith and credit to the payment of the refunding revenue bonds. The refunding revenue bonds shall constitute special obligations of the state and may be payable only from sources authorized in this section for the payment of the bonds refunded. The principal amount of any bonds which have been refunded need not be taken into account in computing compliance with the maximum amounts of bonds authorized to be issued by subsection (b) of this section.

Section 1. W.S. 9-4-601…., are amended to read:

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The amendments to title 9 below take 16.25% of the FMRs flowing to the highway fund and redirect them to the school capcon account. Before they are deposited in that account, amounts necessary for outstanding bonds (under current law), and for bonds to be issued for state obligations under the school capcon program would be deposited in bond repayment accounts.

The amendments to the remaining provisions for FMRs flowing to the highway fund, provide for allocations to the GARVEE and airport bonding accounts authorized under 24-8-201 et.seq. and 9-4-608 above.

The amendments to title 21 below, recognize the increased flow of FMRs and authorize additional bonding for the state obligation for school capcon.

9-4-601. Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments.

(a) All monies received by the state of Wyoming from the secretary of the treasury of the United States under the provisions of the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191), as amended, or from lessees or authorized mine operators and all monies received by the state from its sale of production from federal mineral leases subject to the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191) as amended, except as provided by subsection (b) of this section, shall be deposited in the trust and agency fund and the first two hundred million dollars ($200,000,000.00) of revenues received in any fiscal year shall be distributed by the state treasurer as provided in this subsection. One percent (1%) of these revenues shall be credited to the general fund as an administrative fee, and the remainder shall be distributed as follows:

(iii) Except as provided by W.S. 9-4-605(a), ~~twenty-six and one-quarter percent (26 1/4%)~~ten percent (10%) to the highway fund subject to allocations under W.S. ~~9-4-606 and~~ 9-4-607 first and then subject to allocations required under ~~subsection (h) of this section~~ W.S. 24-8-202(a)(ii) and 9-4-608;

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These FMRs are allocated to accounts for the GARVEE bonds and airport bonds (after existing allocations to fund the transportation enterprise program). That program currently calls for annual distributions of $7 million plus to end January 1, 2002. If funds are not used for bonds, they would flow to the highway fund.

(vi) Except as provided in subsection (e) of this section, three and seventy-five hundredths percent (3.75%) to the capital construction account to be expended as provided by W.S. 9-4-604(k)(i) or to fund bonds the proceeds of which will be used under W.S. 9-4-604(g) and one and twenty-five hundredths percent (1.25%) to the highway fund, subject to W.S. 24-8-202(a)(ii) and 9-4-608;

(vii) Two and seven-tenths percent (2.7%) to the public school capital construction account created by W.S. 21-15-111(a)(i), subject to W.S. 21-15-108;

(ix) Two and twenty-five one-hundredths percent (2.25%), to the highway fund, subject to ~~subsection (h) of this section~~ W.S. 24-8-202(a)(ii) and 9-4-608;

(x) Five-eighths percent (.625%) to the highway fund, subject to ~~subsection (h) of this section~~ W.S. 24-8-202(a)(ii) and 9-4-608;

(xi) Sixteen and one-quarter percent (16.25%) to the public school capital construction account created by W.S. 21-15-111(a)(i), subject to W.S. 9-4-605(a) and 21-15-108.

(b) The state treasurer shall ascertain and withhold all bonus payments received from the federal government attributable to coal, oil shale or geothermal leases of federal land within Wyoming and shall distribute it as follows:

(i) Fifty percent (50%), the first seven million five hundred thousand dollars ($7,500,000.00) of which shall be distributed as follows, but any amount in excess of seven million five hundred thousand dollars ($7,500,000.00) per year shall be deposited into the school capital construction account established under W.S. 21-15-111(a)(i):

(B) One-fourth (1/4) to the highway fund, subject to W.S. 24-8-202(a)(ii) and 9-4-608.

9-4-605. Distribution and use; capital construction projects and bonds; purposes.

(a) Prior to distribution to the public school foundation program account under W.S. 9-4-601(a)(ii), sufficient revenues for the purposes of this section shall be deducted therefrom and credited to a bond repayment account pursuant to the terms of the resolution, indenture or other appropriate proceeding authorizing the issuance of revenue bonds under this section. To the extent that sufficient revenues are not available to fully fund the bond repayment account as provided by this subsection, prior to any distribution to the highway fund under W.S. 9-4-601(a)(iii) or any distribution to the public school capital construction account under W.S. 9-4-601(a)(xi), sufficient additional revenues for the purpose of this subsection shall be deducted therefrom and credited to the bond repayment account under this subsection. The revenues deducted shall be used as provided by this section. The balance of the revenues shall be credited to the public school foundation program account, the highway fund and the public school capital construction account as provided by W.S. 9-4-601.

21-15-108. Revenue bonds for grants and loans; refunding revenue bonds.

(a) Before distribution to the public school capital construction account under W.S. 9-4-305(b), sufficient revenues for the purposes of this section shall be deducted therefrom and credited to a bond repayment account pursuant to the terms of the resolution, indenture or other appropriate proceeding authorizing the issuance of revenue bonds under this section. The revenues deducted shall be used as provided by this section. ~~The balance of the revenues shall be credited to the public school capital construction account as provided under W.S. 9-4-305(b).~~ After available revenues under W.S. 9-4-305(b) have been used, revenues under W.S. 9-4-601(a)(vii) and (xi) and then revenues under 21-13-301 shall also be credited, as necessary, to the bond repayment account and shall be used as provided by this section. The balance of the revenues shall be credited to the public school capital construction account and the school foundation program as provided under W.S. 9-4-305(b), 9-4-601(a)(vii) and (xi) and 21-13-301.

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9-4-305(b) is $8 million from state mineral royalties. 9-4-601(a)(vii) is 2.7% FMRs; (xi) is 16¼% FMRs which were flowing to highways. (Total amount approximately $45.5 million.) W.S. 21-13-301 is earnings from the common school account within the permanent land income fund (currently about $60 million).

(b) The state loan and investment board may borrow money in a principal amount not to exceed ~~one hundred million dollars ($100,000,000.00)~~ seven hundred eight million dollars ($708,000,000.00) by the issuance from time to time of one (1) or more series of revenue bonds. The board may encumber revenues under subsection (a) of this section for bonds in total amounts not to exceed ~~one hundred million dollars ($100,000,000.00)~~ seven hundred eight million dollars ($708,000,000.00) issued for state capital construction assistance under W.S. 21-15-111. The state loan and investment board may issue these bonds only to provide funding for school capital construction projects in accordance with a budget recommendation submitted by the state superintendent under W.S. 21-15-111. Any bonds issued under this section, together with any interest accruing thereon and any prior redemption premiums due in connection therewith, are payable and collectible solely out of revenues authorized under this section. The bondholders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute its special obligations and the board shall not pledge the state's full faith and credit for payment of the bonds.

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The school capcon committee is working on a bill to change the bonding authority from the SLIB to a separate commission. The recommendations would also come from that separate commission rather than the state superintendent. Changes to the school capital construction program such as requiring local bonding to 90% will also need to be made to conform with the Campbell opinions. Those changes are not incorporated in this bill draft.

(d) Any bonds issued under this section shall:

(vii) Be additionally secured by a reserve fund created from revenues deposited within the capital construction account under W.S. 9-4-305(b), 9-4-601(a)(vii) or (xi) or from the proceeds of the bonds, or both, in an amount determined by the state loan and investment board but not to exceed an amount equal to ten percent (10%) of the revenue bonds outstanding.

21-15-111. State capital construction assistance.

(a) As used in this act:

(i) "Capital construction account" or "public school capital construction account" means the account within the earmarked revenue fund into which revenues are deposited pursuant to W.S. 9-4-305(b) and 9-4-601(a)(vii), (xi), (b)(i) and (iv), into which the proceeds from any revenue bonds are credited under W.S. 21-15-108, and into which and in addition to any other funds appropriated to the account for purposes of this act. Funds within the account shall be expended only for purposes of and in the manner prescribed by this act;

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The school capcon account will have revenue streams of 2.7% FMRs, 16.25% FMRs, $8 million in state royalties, loan repayments of about $550,000 through FY 03, and portions of coal lease bonus payments, currently estimated to be about $27 million for FY 03 (then $3.7 million in FY 04). Before the FMR and state royalty streams reach the school capcon account however, any amounts necessary for the bond program are directed to the bond repayment account.

24-1-119. State highway fund created; income and expenditure.

(a) There is created a fund known as the state highway fund, to the credit of which the state treasurer, who is designated as the state official to receive all amounts paid by the United States under the act of congress approved July 11, 1916, shall place all monies previously received for the fund, all money subsequently received from the United States, under cooperative agreements as authorized, all money derived from taxes levied for such purpose or appropriated for the fund, all monies received from the sale of state bonds for highway construction or improvement, all money received from the counties under cooperative agreements as hereinbefore authorized, and all other monies received from donations or bequests, which may be accepted by the commission on behalf of the state of Wyoming, or from any source designated by law for that purpose. All monies in the fund shall be available for the purpose of this act without further appropriation and no warrant shall be drawn on the fund excepting on a voucher approved by the director of the department of transportation or an assistant authorized by the director and approved by the transportation commission. It is provided that seventy-five percent (75%) of the amount of any bond issue subsequently issued by the state of Wyoming for the construction or improvement of state highways, after the payment of overhead expense, shall be apportioned to and spent in each county in the proportion which the assessed valuation of each county by the last general assessment bears to the total assessment of the state.

(b) Notwithstanding the provisions of subsection (a) of this section, grant funds received and necessary for the repayment of bonds pursuant to W.S. 24-8-201 through 24-8-207 and federal mineral royalties received pursuant to W.S. 9-4-601(a)(iii), (vi), (ix), (x) or (b)(i)(B) and necessary for the repayment of bonds pursuant to W.S. 24-8-201 through 24-8-207 or 9-4-608 shall be deposited in the appropriate bond repayment account within the earmarked revenue fund as provided by W.S. 24-8-205 and 9-4-608.

Section 3. W.S. 9-4-606 is repealed.

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9-4-606 is $35 million Lovell prison bonding authority which is supported by FMRs to the highway account.

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The following amendments to title 39 sections increase the gasoline and diesel fuels taxes by $.05 per gallon. This increase is with "exemptions on". The full amount of the additional tax flows to the highway fund, with no distribution to local government.

Section 1. W.S. 39-17-104 by creating a new subsection (e), 39-17-105(a) and (c), 39-17-111 by creating a new subsection (j), 39-17-204 by creating new subsection (e), 39-17-205 and 39-17-211 by creating a new subsection (g) are amended to read:

39-17-104. Taxation rate.

(e) In addition to the taxes collected pursuant to subsections (a) through (d) of this section, there is levied and shall be collected a license tax of five cents ($.05) per gallon on all gasoline used, sold or distributed for sale or use in this state except for those fuels exempted under W.S. 39-17-105.

39-17-105. Exemptions.

(a) Gasoline exported or sold at a Wyoming terminal rack and directly exported outside the state, other than in the fuel supply tank of a motor vehicle, by a person licensed only as an exporter in this state is exempt from the license tax imposed under W.S. 39-17-104(a) through (c) and (e). The exempt sales shall be reported on or before the last business day of the month on forms provided by the department. The sales reports are invalid if not submitted to the department within one (1) year following date of sale. Gasoline directly exported, other than in the fuel supply tank of a motor vehicle, by a Wyoming licensed supplier, is exempt from the additional license tax imposed under W.S. 39-17-104(c) and (e). Exchanges and sales of gasoline between suppliers are exempt from the license tax under this section.

(c) There is granted a credit to the purchaser and user of gasoline used for agricultural purposes and purchased from a Wyoming licensed distributor or importer an amount equal to seventy percent (70%) of the gasoline license taxes imposed by W.S. 39-17-104(a),(b) and ~~(b)~~ (e) on bulk gasoline purchased for agricultural purposes. A Wyoming licensed distributor or importer shall collect the gasoline license tax on bulk gasoline sales less the amount of the credit granted under this section at the time of invoice on the bulk gasoline.

39-17-111. Distribution.

(j) Revenue from gasoline taxes under W.S. 39-17-104(e) shall be transferred to the state treasurer who shall deposit them only into the state highway fund. The provisions of subsections (c) and (d) of this section shall not apply to the tax imposed by W.S. 39-17-104(e).

39-17-204. Taxation rate.

(e) In addition to the taxes collected under subsections (a) through (c) of this section, there is levied and shall be collected a license tax of five cents ($.05) per gallon on all diesel fuel used, sold or distributed for sale or use in this state except for those fuels exempted under W.S. 39-17-205.

39-17-205. Exemptions.

(b) Diesel fuel sold at a Wyoming terminal rack and directly exported, other than in the fuel supply tank of a motor vehicle, by a person licensed only as an exporter in this state is exempt from the license tax imposed under W.S. 39-17-204(a), (b) and ~~(b)~~(e). The exempt sales shall be reported on or before the last business day of the month on forms provided by the department. The sales reports are invalid if not submitted to the department within one (1) year following the date of sale.

(c) Exchanges or sales of diesel fuel between suppliers are exempt from the license tax under W.S. 39-17-204(a) and (e). Diesel fuel directly exported, other than in the fuel supply tank of a motor vehicle, by a supplier is exempt from the license tax under W.S. 39-17-204(a) and (e).

(d) Dyed diesel fuel as defined in W.S. 39-17-201(a)(ix) is exempt from the license tax under W.S. 39-17-204(a) and (e).

(e) Diesel fuel directly exported, other than in the fuel supply tank of a motor vehicle, by a Wyoming licensed supplier is exempt from the additional license ~~tax~~ taxes imposed under W.S. 39-17-204(b) and (e).

39-17-211. Distribution.

(g) Revenues from diesel fuel taxes under W.S. 39-17-204(e) shall be transferred to the state treasurer who shall deposit them only into the state highway fund. The provisions of subsection (d) of this section shall not apply to the tax imposed by W.S. 39-17-204(e).

Section 2. W.S. 9-4-601(h) and 39-14-211(h) are repealed.

*** STAFF COMMENTS ***

These repealed provisions relate to a gas tax swap for the school foundation program, which became ineffective once $20 million was collected. That cap has been reached. A second gas tax swap is to expire June 30, 2002.

*** STAFF COMMENTS ***

The next issue relates to state support of local school bonding. The bond guarantee program and mill levy supplement program are limited to supporting bonds issued prior to the decision in Campbell II.

Section 1. W.S. 9-4-1001(a) and 21-15-105(b) are amended to read:

9-4-1001. Guarantee program for school district bonds.

(a) The state loan and investment board shall administer a school district bond guarantee program in accordance with this section and may promulgate rules to implement it. This program applies to bonds issued by school districts under W.S. 21-13-701 through 21-13-721 prior to February 23, 2001, only. The program is intended to benefit school districts by guaranteeing payment of bonded indebtedness of creditworthy districts by reducing the interest rate at which the bonds may be issued.

21-15-105. Bonded indebtedness mill levy supplement.

(b) This section only applies to bonds issued on or before February 23, 2001, the original term of which was for at least ten (10) years. If a bond has been refunded, the term of the bonds may be for a period less than or greater than ten (10) years if the original term of the refunded bond was at least ten (10) years.

Section 4. This act is effective July 1, 2002.

(END)