WYOMING OFFICE OF THE GOVERNOR

RULES

ALLOCATION OF VOLUME CAP ON TAX-EXEMPT PRIVATE ACTIVITY BONDS

CHAPTER 1

GENERAL PROVISIONS

  Section 1. Authority. Wyo. Stat. § 9-1-219(a) authorizes the Governor to promulgate rules governing the allocation of the unified statewide volume limit (Astate ceiling"), established by the federal Tax Reform Act of 1986, among the state's issuing authorities.

  Section 2. Objectives. The objective of the rules is to establish an accessible, equitable and efficient allocation process that advances the state and local benefits of tax exempt financing.

  Section 3. Governor's Discretion and Consideration. In apportioning the state ceiling, the Governor, in his sole discretion, shall prioritize and determine how the volume cap shall be allocated. The Governor, in determining how to apportion the state ceiling, will be guided by the following general principles:

  (a) Readiness. An applicant must demonstrate to the Governor's satisfaction that it can use the allocation promptly to issue bonds.

  (b) Prevention of Waste or Unproductive Use. In making allocations, the Governor intends to prevent the unproductive use or waste of any part of the state ceiling. An applicant must therefore document the demand for its program or project. In considering the productive use of allocations, the fact that particular projects or programs could not go forward without tax-exempt financing shall be a factor in determining whether to make any allocation.

  (c) Public Benefit.

    (i) Housing. The Governor shall consider the availability of adequate, affordable housing in Wyoming and the availability of funding to finance new and existing owner-occupied and rental housing at reasonable rates and rents, and the impact of the program or project on these needs.

    (ii) Industrial Development Projects (Small Issue Bonds). The Governor shall consider the number, duration, type and average wage of jobs that will be created or retained for Wyoming residents, e. g., whether the project creates semi-skilled or skilled jobs as well as unskilled jobs and whether the employment will provide special training and promotion opportunities to employees. The Governor shall also consider the potential impact of the project on existing businesses in the local market and the economic needs of the local community in comparison to the economic needs of other communities.

    (iii) Exempt Facility Projects. The factors considered for an allocation to an industrial development project bond issue shall also be considered for exempt facility projects. Additionally, the Governor shall consider the following public benefits of exempt facilities: the degree to which the project helps to eliminate air or water pollution; the degree to which the project produces energy; the degree to which the project disposes of solid waste in an environmentally safe manner that meets or exceeds state and federal criteria; and the degree to which the project helps carry out other articulated state or local policies with regard to pollution reduction.

    (iv) Student Loan Programs. The Governor shall consider the issuer's projected demand for student loan allocations; the services that the loan program provides to schools and borrowers; the degree to which lower income households benefit from the program; and the degree to which the program helps carry out other articulated state or local policies. In the event an Issuing Authority requests to enter into additional or extended obligations under Wyo. Stat. § 21-16-113 to obtain financing, the Governor shall also consider the role and actions of the Issuing Authority, past allocations to the Issuing Authority, debt service on outstanding bonds, and the potential liability to the State of Wyoming or any of its agencies for payment of interest, principal or any financial obligation or potential financial consequence resulting from outstanding bond issues by said Issuing Authority, including, but not limited to, the possible need for allocation of additional bonds to the Issuing Authority to refinance or otherwise pay outstanding bond obligations.

    (v) General Considerations. The purpose of private activity bonding in this state is to maximize the economic benefits of such bonding to the citizens of this state. To this end, the Governor shall make allocations that will further economic development, housing, education, redevelopment, public works, energy, waste management, transportation and other activities that the Governor determines will benefit the citizens of the state.

  Section 4. Applicability.

  (a) Repeal of Existing Rules. All existing rules governing allocation of the volume cap on tax- exempt private activity bonds, including any emergency rules and the Governor's rules entitled "Chapter Allocation For Tax Exempt Bonds," are hereby repealed.

  (b) Adopted Rules. These rules may be relied upon by issuers of private activity bonds, beneficiaries of the proceeds, owners of such bonds, and other participants in the issuance of such bonds for the period during which these rules are effective.

  Section 5. Definitions.

  (a) "Act" means the Tax Reform Act of 1986 (26 U.S.C. ' 146).

  (b) "Carryforward" means a specified allocation of the state ceiling issued in accordance with Chapter 6 in one calendar year, which allocation shall not exceed the amount remaining in the general allocation pool on December 31st, after deducting all other carryforward allocations in the same calendar year.

  (c) "Certified allocation" means an allocation of the state ceiling to private activity bonds within the state, which authorizes such bonds to be treated as tax-exempt.

  (d) "General allocation pool" means the portion of the state ceiling available to issuers of bonds regardless of whether such issuers are at the state or local level.

  (e) "Governor" means the Governor of the State of Wyoming.

  (f) "Issuing Authority" means any entity which has the authority to issue bonds or other obligations the interest on which is exempt from federal income taxation pursuant to section 103{a) of the Act.

  (g) "Official intent" means a resolution adopted by the governing body of the Issuing Authority or its delegatee in accordance with applicable federal tax regulations, which initially approves the issuance of its bonds for the project/program in question.

  (h) "Preference allocation" means an allocation of the general allocation pool issued by the Governor before any bond issuance, based upon the complete filing of information required by Chapter 3. This allocation assures receipt of a certified allocation following bond issuance, if all required forms, including a complete and properly executed Internal Revenue Service (IRS) Form 8038, are submitted to the Governor in a timely manner, as required by Chapter 5.

  (i) "Private activity bonds" has the same meaning assigned that term in 26 U.S.C. ' 141(a).

  Section 6. Time Computation. In the event the last day for filing or notice is Saturday, Sunday or any day on which the office of the Governor is authorized or required to close, then the time for expiration shall be extended to the first day thereafter which is not a Saturday, Sunday or other day described above.

  Section 7. Transferability. Except as authorized by the Governor, no allocation or carryforward granted under these rules or by the Governor is transferable.

  Section 8. Performance of Governor's Duties. In performing the functions required under these rules, the Governor may seek the advice and assistance of the Advisory Board as established under Chapter 6 of these rules, any state employee(s) or other persons he deems qualified to provide such advice and assistance. The Governor may appoint a designee to take all actions the Governor may take under these rules.

  Section 9. Anti-kickback Certification. All allocations made under these rules shall carry certification by the public official responsible for the allocation under penalty of perjury that to the best of his or her knowledge the allocation of the state ceiling to the private activity bond(s) was not made in consideration of any bribe, gift, gratuity or direct or indirect contribution to any political campaign.