LEGISLATIVE UPDATE 2011 GENERAL SESSION

DEATH (BUT IT’S GETTING BETTER) OF A BILL Manufacturing exemption died in committee Simple roll call issue No real debate other than on exemptions as a whole Previous concern over large users Use for a recruitment tool, not for existing companies

MANUFACTURING – CHEYENNE REFINARY Capital Investments:$77, Salaries and Benefits$33,250,750 Energy and Utilities 17,576,526 Other expense (excl tax and depr)60,803,802 Refinery Expense $114,357,543 Property Tax:$ 1,808,068 Use Tax 485,389 Fuel Tax 14,077,614 Sales Tax 996,602 Total Wyoming Taxes$17,367,672

MANUFACTURING – CHEYENNE REFINARY We ESTIMATE the amount of sales tax that Frontier Refining has not paid to the State of Wyoming due to the manufacturing exemption is $2,600,000. This number could vary depending on how much was spent on maintenance VS investment. This estimate is based on a 56% capital investment ratio for plant and equipment. Actual numbers are collected by the Dept. of Revenue, but are confidential and not available to WEDA.

MANUFACTURING Wyoming lost 1,317 industrial jobs and 92 manufacturers between September 2008 and September 2010 — the first loss MNI has logged for the state after reporting an increase of 10.6 percent between September 2005 and September Industrial machinery and equipment saw a decline of 6.4 percent. Industrial machinery and equipment currently account for 3,699 of Wyoming's industrial jobs.

JOINT REVENUE John Hines R S23 ChairmanJohn Hines Paul Barnard R S15Paul Barnard Cale Case R S25Cale Case Fred Emerich R S05Fred Emerich Drew Perkins R S29 House Pat Childers R H50 ChairmanDrew PerkinsPat Childers Gregg Blikre R H53Gregg Blikre Rita Campbell R H34Rita Campbell W. Patrick Goggles D H33W. Patrick Goggles Michael Madden R H40Michael Madden David Miller R H55David Miller Owen Petersen R H19Owen Petersen Mark Semlek R H01Mark Semlek Clarence Vranish R H49Clarence Vranish

Legislative Districts

FOCUS ON REVENUE All (or a majority) of WEDA issues will end up in front the Revenue Committee

BONDING INCREASE SF0024 Increase Treasurer bonding authority from $100M to $600M Increase focused on a project somewhere in the Western part of the State Treasurer looking at bonds without the requirement of security enhancement Excellent recruiting tool and weeds out marginal companies

BONDING INCREASE SF0024 WEDA recommendation to increase to $700,000,000 Extend sunset to 2016 to avoid budget cycle

DATA CENTER EXEMPTION Combines software into hardware exemption Will hopefully allow for colocation Tiered approach – for “Mega” projects exempts: –First 3 years of electricity –UPS –Back up power generation –HVAC

DATA COLLECTION – SF0009 Provide funding for data analyzing Third party data collection Answer specific legislative questions Increase WEDA credibility among legislators Provide much needed service Could be used to provide analysis on legislative issues.

DATA COLLECTION – SF0009 Collect, compile, analyze and distribute county economic data Very beneficial for counties with large public land holdings

TO DO LIST 1TALK TO LEGISLATORS 2TALK TO LEGISLATORS FRIENDS 3TALK TO LEGISLATORS PETS 4 LEGISLATORS 5CALL LEGISLATORS 6SEND SMOKE SIGNALS TO LEGISLATORS 7FOCUS ON REVENUE