Meeting Minutes) Is Prepared by the Legislative Service Office (LSO) and Is the Official Record of the Proceedings of a Legislative Committee Meeting

Draft Only Approval Pending S UMMARY of P ROCEEDINGS S EL E CT C OMMITTEE ON C OAL/MINE R AL B ANKRUPTCIES COMMITT EE MEET ING INFORMATION December 9, 2019 Wyoming State Library, Conference Room 2800 Central Avenue Cheyenne, Wyoming COMMITT EE MEMBERS P RESENT Senator Drew Perkins, Co-chairman Representative Eric Barlow, Co-chairman Senator Dan Dockstader Senator Chris Rothfuss Senator Michael Von Flatern Representative Scott Clem Representative Cathy Connolly Representative Clark Stith LEGISLATIVE SERVICE OFFICE STAFF Josh Anderson, Senior Staff Attorney Matthew Willmarth, Senior School Finance Analyst Eilish Hanson, Associate Research Analyst OT HERS PRESENT AT MEETING Please refer to Appendix 1-02 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting. The Committee Meeting Summary of Proceedings (meeting minutes) is prepared by the Legislative Service Office (LSO) and is the official record of the proceedings of a legislative committee meeting. This document does not represent a transcript of the meeting; it is a digest of the meeting and provides a record of official actions taken by the Committee. All meeting materials and handouts provided to the Committee by the Legislative Service Office, public officials, lobbyists, and the public are on file at the Legislative Service Office and are part of the official record of the meeting. An index of these materials is provided at the end of this document and these materials are on file at the Legislative Service Office. For more information or to review meeting materials, please contact the Legislative Service Office at (307) 777-7881 or by e-mail at [email protected]. The Summary of Proceedings for each legislative committee meeting can be found on the Wyoming Legislature’s website at www.wyoleg.gov. PAGE 2 OF 9 EXECUTIVE SUMMARY The Select Committee on Coal/Mineral Bankruptcies (Committee) met for one day to consider information requested at the previous meeting and consider draft legislation related to protecting Wyoming tax revenues and employee payments before or during bankruptcy actions. The Committee heard testimony and considered draft legislation regarding delinquent taxpayer and lien priority provisions, protested tax payments, labor and employment, and monthly ad valorem tax payments for mineral production. The Committee voted to sponsor 20LSO-0304, Performance bonding requirements, formed a working group to specifically consider legislation on monthly ad valorem tax payments, and requested additional legislation for its next meeting. CALL TO ORDER Co-chairman Barlow called the meeting to order at 10:00 AM. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 1-01 to review the Committee Meeting Agenda. REVIEW OF STATUTORY PROVISIONS FOR DELINQUENT TAXPAYER AND LIEN PRIORITY The following subsections summarize the Committee’s work on this topic. Review of Montana and Texas statutory language regarding lien priority Eilish Hanson, Associate Research Analyst, LSO, presented statutory language on lien priority from Montana and Texas (Appendix 2-01). Discussion of the Attorney General's current authority or benefit of expanding authority to provide assistance to counties to secure payments in bankruptcy cases James Kaste, Deputy Attorney General, Water and Natural Resources Division of the Attorney General’s Office, reviewed the Attorney General’s authority to provide assistance to counties for procuring payments during bankruptcy cases (Appendix 2-02). Rusty Bell, Chairman, Campbell County Commission, discussed previous interactions between county attorneys and the Attorney General’s Office during bankruptcy proceedings. Mr. Bell specified that when Campbell County collects tax money owed during bankruptcy proceedings, 72.8% of taxes collected is owed to the State. Bill Novotny, Chairman, Johnson County Commission, specified a need for counties and the Attorney General’s Office to coordinate on tax collections to ensure all measures are taken to secure taxes owed to the State, counties, and schools. Mr. Bell and Mr. Novotny also noted a desire for a bankruptcy expert within the Attorney General’s Office for future consultation when counties, not necessarily the State, are owed money. Barry Crago, Civil Deputy Attorney, Johnson County, explained Johnson County has previously worked with the State to collect taxes based on percentages owed to each entity. Mr. Crago also stated support for a bankruptcy specialist within the Attorney General’s Office. 20LSO-0301, Tax lien enforcement Josh Anderson, Senior Staff Attorney, LSO, presented 20LSO-0301 v0.3 Tax lien enforcement (Appendix 2-03) which clarifies tax lien language on mineral ad valorem taxes. Mr. Anderson provided the Committee a proposed amendment as requested by Co-chairman Barlow to the Committee (Appendix 2-05). SELECT COMMITTEE ON COAL/MINERAL BANKRUPTCIES Summary of Proceedings WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 3 OF 9 Public Comment Mr. Bell, Mr. Novotny, Mr. Crago, and Carol Seeger, Administrator, Campbell County Commission presented a draft version of the bill containing proposed amendments to 20LSO-0301 (Appendix 2-06). Committee Discussion The Committee directed LSO staff to revise 20LSO-0301 to include Johnson and Campbell County’s proposed amendments for consideration at its next meeting. Co-Chairman Perkins moved to have LSO staff draft a separate bill concerning date changes and language on prior existing liens. The motion was seconded by Senator Rothfuss and adopted. The Committee also directed LSO staff to compare statutory language between ad valorem taxes and severance taxes to the language proposed in 20LSO-0301, research how much in legal fees have been withheld as a result of litigation recovering county taxes and determine the impact of 20LSO-0301 on federal leases. 20LSO-0305, Transfer of mineral interests - tax obligations Mr. Anderson presented 20LSO-0305, Transfer of mineral interests – tax obligations (Appendix 2-04) to the Committee, which prevents the transfer of mine ownership until all outstanding taxes are paid either by the seller or buyer. Public Comment Mr. Bell, Mr. Novotny, Mr. Crago, and Ms. Seeger presented a draft bill containing proposed amendments to 20LSO-0305 (Appendix 2-07), which requires that all taxes will be paid at the time of a mine sale to reflect real estate transactions and not allow a transferee to assume outstanding tax liabilities. Committee Discussion Representative Connolly moved, seconded by Representative Stith, to have LSO revise the proposed draft bill to include the proposed amendments from Campbell and Johnson Counties for discussion at the next Committee meeting. The Committee approved an amendment from Senator Von Flatern to include an option for producers to pay all state and local taxes within a time limit if the producer is not able to become current on all outstanding taxes. The main motion, as amended, was adopted by the Committee. PROTESTED TAX PAYMENTS The following subsections summarize the Committee’s work on this topic. 20LSO-0303, Taxpayer appeals Mr. Anderson presented 20LSO-0303, Taxpayer appeals (Appendix 3-01) to the Committee, which applies to protested tax payments. Public Comment Mr. Bell, Mr. Novotny, Mr. Crago, and Ms. Seeger presented a draft bill containing proposed amendments to 20LSO-0303 (Appendix 3-02), which adds county boards of equalization into the tax appeal process as well as tax distributions. Dixie Huxtable, Converse County Assessor, explained the timeframe under which taxes are protested, indicating a timing issue with the current language of the bill draft. SELECT COMMITTEE ON COAL/MINERAL BANKRUPTCIES Summary of Proceedings WYOMING LEGISLATIVE SERVICE OFFICE • 200 West 24th Street • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEBSITE www.wyoleg.gov PAGE 4 OF 9 Brenda Arnold, Administrator of the Property Tax Division, Department of Revenue, encouraged keeping taxpayers’ rights intact as well as their right to the appeal process, and suggested the Committee include language on page four of the bill draft that the prior years’ taxes shall be paid regardless of appeal. Pete Obermueller, President, Petroleum Association of Wyoming, expressed opposition to the enforcement of taxes paid prior to protesting the assessed amount as companies are already required to pay the taxes, regardless of protest. Committee Discussion Representative Clem moved to table 20LSO-0303, Taxpayer appeals indefinitely. The motion was seconded by Representative Connolly and passed by voice vote. LABOR AND EMPLOYMENT The following subsections summarize the Committee’s work on this topic. Responses to Committee requests Andrea Hixon, Manager, Program Strategy Team, Department of Workforce Services (DWS), and Christina West, Program Manager, Wyoming Innovation and Opportunity Act Title I, DWS, presented a letter to the Committee (Appendix 5-01), which outlines information requested of DWS during the Committee’s October 14 meeting. Department of Workforce Services recommendations Jason Wolfe, Administrator, Workforce Standards, DWS and Kelly Roseberry, Deputy Administrator, Labor Standards, DWS also addressed the letter to the Committee from DWS (Appendix 5-01). Ms. Roseberry referenced Blackjewel’s change from Chapter 11 bankruptcy filing to Chapter 7, which enabled

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