Administrative Rule Review Report AR08-009
Legislative Service Office
18-Jan-08
AGENCY: Wyoming Business Council.
DATE SUBMITTED: January 14, 2008.
SUBJECT: Chapter 1, General Provisions; and Chapter 2, Workforce Housing Infrastructure Loans.
NATURE OF RULES: Legislative, Procedural
STATUTORY AUTHORITY: W.S. 9-12-104(a)(iv) and 9-12-902(a)
These rules were reviewed previously by Management Council as #AR07-040. Based on several concerns raised by LSO at that time, the Governor did not sign the rules and the Agency revised and resubmitted the rules.
DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:
The Wyoming Administrative Procedure Act generally does not apply to the Wyoming Business Council. W.S. 9-12-103(g). However, W.S. 9‑12‑104(a)(iv) provides that rules adopted by the Wyoming Business Council will be submitted to the Management Council for review and must be approved by the governor and filed with the secretary of state.
The Administrative Procedure Act, from which the Council is mainly exempt, requires the LSO be given notice of intended rulemaking action. The LSO did not receive formal notification of intended rulemaking but the draft rules had been provided to the Sponsor, the Joint Minerals, Business and Economic Development Interim Committee (Committee) in November 2007 and final changes to the draft rules were discussed at the Committee's December 2007 meeting. LSO staff had notice the rules were being redrafted as it worked with Business Council staff to further clarify issues raised in the review of the first set of these rules.
Likewise, the rules were not noted as proposed new rules as provided under the APA. As a consequence, notice of the proposed rulemaking was not provided to the prime sponsor or committee responsible for the enabling legislation as required by W.S. 28‑9‑103(d). Upon receipt of the final rules, notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28‑9‑103(d). No comments have been received to date and any comments received will be forwarded to Management Council.
Administrative Rule Review Report AR08-009
Legislative Service Office
18-Jan-08
Page 2
SUMMARY OF RULES:
These new rules provide the mechanism for the Agency to implement the Wyoming Workforce Housing Infrastructure Loan Program, W.S. 9-12-901 through 9‑12‑905 pursuant to legislation passed at 2007 Session Laws, Chapter 181. More specifically, Chapter 1, General Provisions provide:
- Section 1 – Explains the purpose of the program.
- Section 2 – Provides for rulemaking authority.
- Section 3 - Provides definitions.
- Section 4 – Describes eligible applicants.
- Section 5 – Identifies eligible activities for workforce housing infrastructure.
- Section 6 – Identifies activities not eligible for workforce housing infrastructure.
- Section 7 – Requires the workforce housing infrastructure to be publicly owned.
- Section 8 – Requires a public hearing for the project and requires a signed resolution to be submitted with the project application.
- Section 9 – Explains funding cycles and identifies when applications can be submitted.
- Section 10 – Explains the application procedures.
- Section 11 – Explains the evaluation and scoring system.
- Section 12 – Provides for program administration, including that the Agency may contract with state agencies, authorities or instrumentalities as necessary or convenient to facilitate the Agency's duties under the program.
- Section 13 – Explains how funds will be distributed, including fund disbursement, fund reversion, project monitoring and project evaluation.
More specifically, Chapter 2, Workforce Housing Infrastructure Loans provide:
- Section 1 – Provides the general policy of the program, including constraints to prevent unduly enriching a developer/builder, constraints to prevent speculators from buying a house in order to quickly sell at profit and requires that the public investment is passed on to the home buyer.
- Section 2 – Describes application submittal requirements.
- Section 3 – Describes loan requirements on projects involving a community land trust.
- Section 4 – Provides requirements for previous applicants.
- Section 5 – Sets the annual maximum loan amount of one million dollars ($1,000,000.00).
- Section 6 – Defines the interest rate and term.
- Section 7 – Requires a loan to be adequately collateralized as determined by the Agency.
- Section 8 – Requires an attorney general opinion on all loans to certify the legality of the transaction and all loan documents.
- Section 9 – Requires the Agency to consider each application, allow for public comments, and refer the loan to the State Loan and Investment Board.
- Section 10 – Provides for disbursement of the loan proceeds.
Administrative Rule Review Report AR08-009
Legislative Service Office
18-Jan-08
Page 3
FINDINGS:
The rules appear to be within the scope of statutory authority and legislative intent. Issues that were raised in the rule review for AR07-040 have been addressed.
Compliance with federal law has not been determined as it is assumed the Attorney General has provided such review.
STAFF RECOMMENDATION:
That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.
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Maxine R. Weaver
Staff Attorney
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David K. Gruver
Assistant Director
MRW/