CHAPTER 89. House Bill No. 158. SALE OF SECURITIES. AN ACT to amend and re-enact Sections 5112 and 5114, Wyoming Compiled Statutes 1920, as amended and re-enacted by Sections 5 and 7 of Chapter 123, Session Laws of Wyoming, 1921, relating to the sale of securities. Be It Enacted by the Legislature of the State of Wyoming: Section 1. That Section 5112, Wyoming Compiled Statutes, 1920, as amended and re-enacted by Section 5, Chapter 123, Session Laws of Wyoming, 1921, be amended and re-enacted to read as follows: Accounts Subject to Examination Semi-Annual Reports. Section 5112. The general accounts of every person, co-partnership, association or corporation, issuing or guaranteeing any speculative securities subject to the provisions of this Act, shall be kept in a businesslike and intelligent manner and in sufficient detail so that the Secretary of State or his authorized representative can ascertain at any time the financial condition of such person, co-partnership, association or corporation, and the books of account and affairs of any such person, co-partnership, association or corporation shall be subject to examination by the said Secretary of State or upon his direction by his authorized assistants or any certified public accountant whom the Secretary of State shall designate, at any time said Secretary of State shall deem it advisable; Provided, that such certified 'public accountant shall furnish to the Secretary of State an estimate of the expense to be incurred in making such examination, before the examination. shall be made, and that the person, co-partnership, association or corporation to be examined shall deposit with the Secretary of State an amount sufficient to cover such estimated expense, prior to the examination, upon request of the Secretary of State; provided, further, that if such examination shall be made by the Secretary of State or his assistants, the expense shall be limited to traveling and hotel expense. And every person, co-partnership, association or corporation making or guaranteeing any speculative securities subject to the provisions of this Act, shall file with the Secretary of State and county clerks at the close of business June 30th, and December 31st of each year, and at such other times as may be required by the Secretary of State, a statement certified by the oath of some person having actual knowledge of the facts therein stated, setting forth, in such form as may be prescribed by the Secretary of State, the financial condition, amount of property and liabilities of such person, co-partnership, association or corporation and such other information as said Secretary of State may require. It shall be unlawful for any person, co-partnership, association or corporation subject to the provisions of this Act, failing or refusing to comply with the provisions of this Section within fifteen days after compliance is required, to thereafter sell or offer for sale in this State any speculative stock which said person, partnership, association or corporation is selling or offering for sale in this state. Section 2. That Section 5114 Wyoming Compiled Statutes, 1920, as amended and re-enacted by Section 7, Chapter 123, Session Laws of Wyoming, 1921, be amended and re-enacted to read as follows: False Statements in Filings-Penalty. Section 5114. Any person who shall knowingly make or file, or cause to be made or filed with the Secretary of State, any statement, document, circular, advertisement or prospectus, required to be filed under the provisions of Chapter 324, Wyoming Compiled Statutes, 1920, as amended and re-enacted by Chapter 123, Session Laws of Wyoming, 1921, and by this Act which is false in any material respect or matter, or who shall commit in this State any act declared to be unlawful by Sections 5106, 5109 and 5110, Wyoming Compiled Statutes, 1920, as amended and re-enacted by Sections 1, 3 and 4, Chapter 123, Session Laws of Wyoming, 1921, or by Section 5112, Wyoming Compiled Statutes, 1920, as amended and re-enacted by Section 5112, Wyoming Compiled Statutes, 1920, as amended and re-enacted by Section 5, Chapter 123, Session Laws of Wyoming, 1921, and by Section 1 of this Act shall be guilty of a felony, and on conviction in any court of competent jurisdiction punished by a fine of not less than One Hundred ($100.00) Dollars nor more than Five Thousand Dollars ($5,000.00), or by imprisonment in the State Penitentiary for not less than one nor more than ten years, or by both such fine and imprisonment. Section 3. This act shall take effect and be in force from and after its passage. Approved March 2, 1923. CHAPTER 90. House Bill No. 229. CONTRACTS OF IRRIGATION DISTRICTS WITH UNITED STATES. AN ACT relating to the duties and powers of Commissioners of Irrigation Districts. Be It Enacted by the Legislature of the State of Wyoming: Section 1. The Board of Commissioners of any irrigation district in contracting with the United States for the construction, operation and maintenance of its necessary works for the delivery and distribution of water therefrom under the provisions of the Federal Reclamation Act and acts amendatory thereto and supplementary thereof, and the rules and regulations established thereunder, may include in said contract with the United States, a provision or provisions for the construction, operation and maintenance of any necessary drainage works which they may reasonably contemplate to be necessary for the reclamation and drainage of lands of the district affected or to be affected injuriously by the seepage or percolation of waters from the irrigation works of the district or from the highlands in the district irrigated or to be irrigated, and said commissioners shall include the costs of such drainage in the "cost of construction" as defined by paragraph 5 of Section 964, Chapter 75, Wyoming Compiled Statutes 1920. Section 2. This Act shall take effect and be in force from and after its passage. Approved March 3, 1923. CHAPTER 91. Senate File No. 86. ESTABLISHMENT OF IRRIGATION DISTRICTS-POWERS OF COMMISSIONERS. AN ACT to amend and re-enact Chapters 54 and 121, Session Laws of Wyoming, 1921, and Sections 961, 978, 990 and 992, Wyoming Compiled Statutes, 1920, relating to Irrigation Districts. Be It Enacted by the Legislature of the State of Wyoming: Section 1. Chapter 54, Session Laws of Wyoming, 1921, is hereby amended and re-enacted to read as follows: Order of Court Establishing District and Appointing Commissioners. "Section 960. If the issues at this hearing are decided in favor of the petitioners, the court shall make an order: 1. Approving and confirming the petition. 2. Defining the boundaries of the district. 3. Dividing the district into three or five sub-divisions as the court may consider appropriate, which sub-divisions shall be as nearly equal in size as may be practicable and which shall be designated as commissioner districts, and each district shall be numbered consecutively. Should the district be first divided into three sub-divisions the same shall be thereafter increased to five sub-divisions, and the number of commissioners increased to five provided a majority of the qualified electors voting, vote in favor of such increase at an election called for the purpose. Said election for the increased number of districts and commissioners shall be called upon the order of the district commissioners upon receipt by them of a petition requesting such an election signed by at least thirty per cent of the qualified electors of the district. If a majority of the qualified electors voting should vote in favor of such an increase the district commissioners shall forthwith proceed to re-divide the district into five sub-divisions as nearly equal in size as may be practicable, and commissioners shall be elected to represent all districts, as re-divided, at the next general election of the district, and the terms of such commissioners and the order of their retirement shall be as provided for in the case of first election of commissioners after the formation of the district. 4. Establish said district as a corporation by the name proposed with powers: A. To sue and be sued. B. To adopt and use a corporate seal. C. To have perpetual succession. D. To file on and acquire the right to use of water for domestic and irrigation purposes; to acquire sites for reservoirs, and rights of way for ditches, canals and laterals. E. To exercise the power of eminent domain under Chapter 316, and all acts or parts of acts amendatory thereto. F. To contract with the State of Wyoming for the reclamation and segregation of public lands pursuant to the laws of the United States and the State of Wyoming and to contract for the sale of water rights by it acquired pursuant to said laws, and to purchase and acquire state lands. G. To acquire by purchase or otherwise irrigation works, water rights, lands and other property and to sell, lease or otherwise dispose of the same, as the district may deem expedient or suitable for the development of the district. 5. Shall appoint one commissioner from each commissioner district, who shall be a freeholder or entryman upon public lands, in said district, provided, however, if the majority of the irrigable area of the district is unentered public land, a majority of the commissioners shall be appointed by the Secretary of the Interior, who shall be residents of the State. The commissioners appointed by the Court shall at all times be under the direction of the court and may be removed from office by the court upon good cause shown; provided, however, no commissioner shall be removed until written charges specifying the ground upon which such removal is sought are filed and an opportunity given such commissioner to be heard at a hearing provided. In case a commissioner has been removed under this provision the court shall immediately appoint a successor. All findings and orders of the court made at the hearing herein provided for shall be final and conclusive unless appealed from to the Supreme Court within thirty days after filing thereof." Section 2. Section 961, Wyoming Compiled Statutes, 1920, is hereby amended and re-enacted to read as follows: Oath and Bond of Commissioners-Term Bond. "Section 961. Before entering upon their duties, such commissioners shall take and subscribe an oath to support the constitution of the United States and the constitution of the State of Wyoming, to faithfully and impartially discharge their duties as such commissioners and to render a true account of their doings to the court by which they are appointed whenever required by law or the order of the court, and shall execute a bond running to the clerk of said court and his successors in office as obligees, to be filed with said clerk for the benefit of the parties interested, in an amount to be fixed by the court or presiding judge, and with sureties to be approved by the court or presiding judge, conditioned for the faithful discharge of their duties as such commissioners and the faithful accounting of all moneys which shall come into their hands as such commissioners. A majority shall constitute a quorum and a concurrence of a majority in any matter within their duties shall be sufficient to its determination. The commissioners appointed shall hold their office until the first Tuesday in the second succeeding December following the date of the order organizing such district and until their respective successors are qualified, except the commissioners appointed by the Secretary of the Interior who shall be subject to removal from office and any vacancy filled by said Secretary of the Interior, which commissioners shall hold office until less than majority of the lands within the District are unentered public lands, after which they shall be elected as otherwise provided in this chapter. If the office of any commissioner so appointed shall become vacant by reason of death, or other cause, the court or judge thereof shall appoint a qualified person to fill such vacancy." Section 3. Chapter 121, Session Laws of Wyoming, 1921, is hereby amended and re-enacted to read as follows: Duties and Powers of Commissioners. "Section 963. The commissioners appointed as aforesaid and their successors in office shall, from the entry of such order of confirmation, constitute the corporate authority of said irrigation district, and shall exercise the functions conferred on them by law. They shall organize as a board, elect a president from their number and appoint a secretary-treasurer. The board shall have power, and it shall be their duty, to adopt by-laws, manage and conduct the affairs and business of the district, make and execute all necessary contracts, employ such agents, attorneys, officers, and employees as may be required, and prescribe their duties, establish equitable rules and regulations for the distribution and use of water to and upon the lands of the district; provided, always that such rules shall not be in conflict with or contrary to any statute of this State relative to such matters; and generally to perform all such acts as shall be necessary to fully carry out the purposes of this chapter. Said board shall have the power in addition to the means to supply water to said district proposed by the petition submitted for the formation of said district, to construct, acquire or purchase any and all canals, ditches, reservoirs, reservoir sites, water rights, rights of way, or other property necessary for the use of the district. In case of the purchase of any property by such district the bonds of the district hereinafter provided for may be used at their par value in payment without previous offer of such bonds for sale. For the purpose of acquiring control over government land within the district and complying with the provisions of the act of Congress of August 11, 1916, the board shall have authority to make such investigation, and based thereon, such representations and assurances to the Secretary of the Interior as may be requisite; and the board may contract with the United States for the construction, operation and maintenance of the necessary works for the delivery and distribution of water therefrom under the provisions of the Federal Reclamation Act, and all acts amendatory thereof and supplementary thereto and the rules and regulation established thereunder, or for the assumption, as principal or guarantor, of indebtedness to the United States on account of district lands. The board may contract with the United States for a water supply under any act of Congress providing for or permitting such contract and in case contract has been or may thereafter be made with the United States as herein provided, bonds of the district may be deposited with the United States at ninety per cent of their par value, to the amount to be paid by the district to the United States under any such contract, the interest on said bonds, if bearing interest, to be provided for by assessment and levy as in case of other bonds of the district and regularly paid to the United States to be applied as provided in such contract, and if bonds of the district are not so deposited it shall be the duty of the board to include as part of any levy or assessment provided for herein, an amount sufficient to meet each year all payments accruing under the terms of any such contract; and the board may accept on behalf of the district, appointment of the district as fiscal agent of the United States, or authorization of the district by the United States to make collections of moneys for or on behalf of the United States, in connection with any Federal reclamation project, whereupon the district shall be authorized to so act and to assume the duties and liabilities incident to such action, and the said board shall have full power to do any and all things required by the Federal statutes now or hereafter enacted in connection therewith, and all things required by the rules and regulations now or that may hereafter be established by any department of the Federal government in regard thereto. The said rules and regulations shall be printed in convenient form as soon as the same are adopted, for the distribution in the district. Provided, however, that the commissioners of the district shall not contract with the United States for the construction, operation or maintenance of the necessary works for the delivery and distribution of water to district lands, or for drainage of district lands, under the provisions of the Federal Reclamation Act and any act or acts amendatory thereof or supplementary thereto, or the rules and regulations established thereunder, or for the assumption as principal or guarantor, of indebtedness to the United States on account of district lands, or for a water supply or drainage incident to irrigation under any act of Congress providing for or permitting such contract, or for acceptance by the district of appointment or authorization as fiscal agent of the United States to make |